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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Financial assets and liabilities measured at fair value on a recurring basis

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011.

	September 30, 2012
	(In thousands)
	Total		Level I		Level II		Level III
Assets:
U.S. government agencies	$	13,654	$	—	$	13,654	$	—
Obligations of states and political subdivisions		74,304		—		74,304		—
Mortgage-backed securities:
Agency		165,512		—		165,512		—
Non-agency		15,305		—		15,305		—
Other asset-backed securities		32,192		—		32,192		—
Corporate preferred stock		61		—		61		—
Corporate securities		7,346		—		7,346		—
Mortgage interest rate locks		91		—		91		—
Liabilities:
Interest rate swap	$	500	$	—	$	500	$	—
Mortgage banking hedge instruments		63		—		63		—

	December 31, 2011
	(In thousands)
	Total		Level I		Level II		Level III
Assets:
U.S. government agencies	$	9,343	$	—	$	9,343	$	—
Obligations of states and political subdivisions		67,542		—		67,542		—
Mortgage-backed securities:
Agency		187,070		—		187,070		—
Non-agency		18,206		—		18,206		—
Other asset-backed securities		15,796		—		15,796		—
Corporate preferred stock		40		—		40		—
Corporate securities		9,976		—		9,976		—
Trust preferred securities		269		—		269		—
Liabilities:
Interest rate swap		314		—		314		—

Financial and non financial assets measured at fair value on a nonrecurring basis

The following table summarizes the Company's financial assets that were measured at fair value on a nonrecurring basis as of September 30, 2012 and December 31, 2011:

	September 30, 2012
	(In thousands)
Description	Total		Level I		Level II		Level III
Assets:
Loans held for sale	$	92,501	$	—	$	92,501	$	—
Impaired loans	11,895		—		9,823		2,072

	December 31, 2011
	(In thousands)
Description	Total		Level I		Level II		Level III
Assets:
Loans held for sale	$	92,514	$	—	$	92,514	$	—
Impaired loans	10,648		—		6,767		3,881

Roll-forward of the transfers in and out of the Level III valuation method

The following table presents a roll-forward of the transfers in and out of the Level III valuation method for financial assets that are measured at fair value on a nonrecurring basis as of September 30, 2012:

	Impaired Loans
	(in thousands)
Balance at December 31, 2011	$	3,881

Transfers in	2,452

Transfers out (1)	(3,744		)

Other (2)	(517		)

Balance at September 30, 2012	$	2,072

(1)

Impaired loans are considered to have a Level III valuation methodology if the appraisal on the loan is older than two years. Transfers out of level three status represent loans for which current appraisals have been obtained or loans which have been transferred to other real estate owned and the collateral re-appraised at the time of the transfer.

(2)

Other changes in the Level III balances during the period represent principal changes on level three impaired loans and valuation adjustments since December 31, 2011.

Quantitative information on Level III assets

The following table presents quantitative information as of September 30, 2012 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis:


	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Impaired Loans	$	2,072	Discounted appraised value	Discount for selling costs and age of appraisals.	10% - 30% (21%)

Balance of financial assets and liabilities

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011.

	September 30, 2012
	(In thousands)
	Total		Level I		Level II		Level III
Assets:
U.S. government agencies	$	13,654	$	—	$	13,654	$	—
Obligations of states and political subdivisions		74,304		—		74,304		—
Mortgage-backed securities:
Agency		165,512		—		165,512		—
Non-agency		15,305		—		15,305		—
Other asset-backed securities		32,192		—		32,192		—
Corporate preferred stock		61		—		61		—
Corporate securities		7,346		—		7,346		—
Mortgage interest rate locks		91		—		91		—
Liabilities:
Interest rate swap	$	500	$	—	$	500	$	—
Mortgage banking hedge instruments		63		—		63		—

	December 31, 2011
	(In thousands)
	Total		Level I		Level II		Level III
Assets:
U.S. government agencies	$	9,343	$	—	$	9,343	$	—
Obligations of states and political subdivisions		67,542		—		67,542		—
Mortgage-backed securities:
Agency		187,070		—		187,070		—
Non-agency		18,206		—		18,206		—
Other asset-backed securities		15,796		—		15,796		—
Corporate preferred stock		40		—		40		—
Corporate securities		9,976		—		9,976		—
Trust preferred securities		269		—		269		—
Liabilities:
Interest rate swap		314		—		314		—

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

+ Details