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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2012
Fair Value Measurements Tables  
Significant unobservable inputs used to measure fair value

Direct annual servicing cost per loan $50
Direct annual servicing cost per loan in process of foreclosure $500
Weighted average prepayment speed: CPR 59.90%
Weighted average prepayment speed: PSA 1300.04%
Weighted average cash flow discount rate 8.19%
Asset reinvestment rate 4.00%
Short-term cost of funds 0.25%
Escrow inflation adjustment 1.00%
Servicing cost inflation adjustment 1.00%

 
Fair value measured on a recurring basis

Information regarding the fair value of assets and liabilities measured at fair value on a recurring basis as of December 31:

 

       Recurring Fair Value Measurements Using 
       Quoted Prices         
       in Active   Significant     
   Assets and   Markets for   Other   Significant 
   Liabilities   Identical   Observable   Unobservable 
   Measured at   Assets   Inputs   Inputs 
   Fair Value   (Level 1)   (Level 2)   (Level 3) 
                 
2012                    
Assets:                    
Securities available for sale:                    
U.S. Treasury and agency debentures  $10,027   $0   $10,027   $0 
U.S. agency issued residential MBS and CMO   59,640    0    59,640    0 
Privately issued residential MBS and CMO   173    0    173    0 
Nonrated commercial paper   5,500    0    5,500    0 
Equity securities   47    0    0    47 
                     
Total securities available for sale   75,387    0    75,340    47 
Loans held for sale   884    0    884    0 
Mortgage rate lock commitments   91    0    91    0 
Interest rate swap agreements   673    0    673    0 
                     
Total assets  $77,035   $0   $76,988   $47 
                     
Liabilities – Interest rate swap agreements  $1,372   $0   $1,372   $0 
                     
2011                    
Assets:                    
Securities available for sale:                    
U.S. Treasury and agency debentures  $518   $0   $518   $0 
U.S. agency issued residential MBS and CMO   58,389    0    58,389    0 
Privately issued residential MBS and CMO   429    0    429    0 
Other equity securities   47    0    0    47 
                     
Total securities available for sale   59,383    0    59,336    47 
Loans held for sale   39    0    39    0 
Mortgage rate lock commitment   60    0    60    0 
Interest rate swap agreements   555    0    555    0 
                     
Total assets  $60,037   $0   $59,900   $47 
                     
Liabilities – Interest rate swap agreements  $1,131   $0   $1,131   $0 

 
Reconciliation of fair value measurements using significant unobservable inputs

The reconciliation of fair value measurements using significant unobservable inputs during the years ended December 31 is as follows:

 

   Securities 
   Available 
   for Sale 
     
Balance at January 1, 2011:  $51 
Total realized/unrealized gains (losses):     
Included in earnings   0 
Included in other comprehensive income   0 
Purchases, maturities, and sales   (4)
      
Balance at December 31, 2011  $47 
      
Total gains (losses) for the period included in earnings attributable to the change     
in unrealized gains or losses relating to assets still held at December 31, 2011  $0 
      
Balance at January 1, 2012:  $47 
Total realized/unrealized gains (losses):     
Included in earnings   0 
Included in other comprehensive income   0 
Purchases, maturities, and sales   0 
      
Balance at December 31, 2012  $47 
      
Total gains (losses) for the period included in earnings attributable to the change     
in unrealized gains or losses relating to assets still held at December 31, 2012  $0 

 
Fair value measured on nonrecurring basis

Information regarding the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of December 31 follows:

 

       Nonrecurring Fair Value Measurements Using 
       Quoted Prices         
       in Active   Significant     
       Markets for   Other   Significant 
   Assets   Identical   Observable   Unobservable 
   Measured at   Assets   Inputs   Inputs 
   Fair Value   (Level 1)   (Level 2)   (Level 3) 
                 
2012                    
Assets:                    
Impaired loans  $2,973   $0   $328   $2,645 
Foreclosed assets   1,774    0    752    1,022 
Mortgage servicing rights   1,233    0    0    1,233 
                     
Total assets  $5,980   $0   $1,080   $4,900 
                     
2011                    
Assets:                    
Impaired loans  $4,086   $0   $0   $4,086 
Foreclosed assets   2,939    0    587    2,352 
Mortgage servicing rights   1,205    0    0    1,205 
                     
Total assets  $8,230   $0   $587   $7,643 
 
Schedule of Carrying Value and Estimated Fair Values of Financial Instruments

The carrying amounts and fair values of PSB’s financial instruments consisted of the following:

 

   December 31, 2012 
   Carrying   Estimated   Fair Value Hierarchy Level 
   Amount   Fair Value   Level 1   Level 2   Level 3 
                     
                     
Financial assets:                         
                          
Cash and cash equivalents  $48,847   $48,847   $48,847   $0   $0 
Securities   145,209    147,751    0    145,795    1,956 
Bank certificates of deposit   4,465    4,538    0    0    4,538 
Net loans receivable and loans held for sale   478,875    484,925    0    1,212    483,713 
Accrued interest receivable   2,157    2,157    0    0    2,157 
Mortgage servicing rights   1,233    1,233    0    0    1,233 
Mortgage rate lock commitments   91    91    0    91    0 
FHLB stock   2,506    2,506    0    0    2,506 
Cash surrender value of life insurance   11,813    11,813    11,813    0    0 
Interest rate swap agreements   673    673    0    673    0 
                          
Financial liabilities:                         
                          
Deposits  $565,442   $568,014   $0   $0   $568,014 
FHLB advances   50,124    51,590    0    51,590    0 
Other borrowings   20,728    22,118    0    14,890    7,228 
Senior subordinated notes   7,000    7,000    0    0    7,000 
Junior subordinated debentures   7,732    4,911    0    0    4,911 
Interest rate swap agreements   1,372    1,372    0    1,372    0 
Accrued interest payable   697    697    0    0    697 

 

The carrying amounts and fair values of PSB’s financial instruments consisted of the following:

 

   December 31, 2011 
   Carrying   Estimated   Fair Value Hierarchy Level 
   Amount   Fair Value   Level 1   Level 2   Level 3 
                     
                     
Financial assets:                         
                          
Cash and cash equivalents  $38,205   $38,205   $38,205   $0   $0 
Securities   108,677    110,134    0    108,346    1,788 
Bank certificates of deposit   2,484    2,577    0    0    2,577 
Net loans receivable and loans held for sale   437,596    444,799    0    39    444,760 
Accrued interest receivable   2,068    2,068    0    0    2,068 
Mortgage servicing rights   1,205    1,205    0    0    1,205 
Mortgage rate lock commitments   60    60    0    60    0 
FHLB stock   3,250    3,250    0    0    3,250 
Cash surrender value of life insurance   11,406    11,406    11,406    0    0 
Interest rate swap agreements   555    555    0    555    0 
                          
Financial liabilities:                         
                          
Deposits  $481,509   $484,640   $0   $0   $484,640 
FHLB advances   50,124    52,547    0    52,547    0 
Other borrowings   19,691    21,454    0    15,163    6,291 
Senior subordinated notes   7,000    7,120    0    0    7,120 
Junior subordinated debentures   7,732    4,849    0    0    4,849 
Interest rate swap agreements   1,131    1,131    0    1,131    0 
Accrued interest payable   623    623    0    0    623