| Schedule of fair value of assets measured on recurring basis |
The following table presents the assets reported on
the Consolidated Balance Sheets at their fair value on a recurring basis as of September 30, 2012 and December 31, 2011, by level within the fair value hierarchy. No liabilities are carried at fair value. As required by the applicable
accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Equity securities and U.S. Treasury Notes are valued at the closing
price reported on the active market on which the individual securities are traded. Obligations of U.S. government corporations and agencies, mortgage-backed securities, corporate bonds and obligations of states and political subdivisions are valued
at observable market data for similar assets.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Dollars in thousands) |
|
Level I |
|
|
Level II |
|
|
Level III |
|
|
Total |
|
| |
|
September 30, 2012 |
|
|
Assets:
|
|
|
|
|
|
Securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury security
|
|
$ |
100 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
100 |
|
|
Obligations of U.S. government corporations and agencies
|
|
|
0 |
|
|
|
34,874 |
|
|
|
0 |
|
|
|
34,874 |
|
|
Mortgage-backed securities in government sponsored entities
|
|
|
0 |
|
|
|
79,328 |
|
|
|
0 |
|
|
|
79,328 |
|
|
Obligations of states and political subdivisions
|
|
|
0 |
|
|
|
16,138 |
|
|
|
0 |
|
|
|
16,138 |
|
|
Corporate bonds
|
|
|
0 |
|
|
|
4,383 |
|
|
|
0 |
|
|
|
4,383 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
|
|
|
100 |
|
|
|
134,723 |
|
|
|
0 |
|
|
|
134,823 |
|
|
Equity securities in financial institutions
|
|
|
66 |
|
|
|
0 |
|
|
|
0 |
|
|
|
66 |
|
|
Loans held for sale
|
|
|
540 |
|
|
|
0 |
|
|
|
0 |
|
|
|
540 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$ |
706 |
|
|
$ |
134,723 |
|
|
$ |
0 |
|
|
$ |
135,429 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
|
December 31, 2011 |
|
|
Assets:
|
|
|
|
|
|
Securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury security
|
|
$ |
100 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
100 |
|
|
Obligations of U.S. government corporations and agencies
|
|
|
0 |
|
|
|
28,323 |
|
|
|
0 |
|
|
|
28,323 |
|
|
Mortgage-backed securities in government sponsored entities
|
|
|
0 |
|
|
|
76,332 |
|
|
|
0 |
|
|
|
76,332 |
|
|
Obligations of states and political subdivisions
|
|
|
0 |
|
|
|
14,880 |
|
|
|
0 |
|
|
|
14,880 |
|
|
Corporate bonds
|
|
|
0 |
|
|
|
3,330 |
|
|
|
0 |
|
|
|
3,330 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
|
|
|
100 |
|
|
|
122,865 |
|
|
|
0 |
|
|
|
122,965 |
|
|
Equity securities in financial institutions
|
|
|
61 |
|
|
|
0 |
|
|
|
0 |
|
|
|
61 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$ |
161 |
|
|
$ |
122,865 |
|
|
$ |
0 |
|
|
$ |
123,026 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of fair value of assets measured on nonrecurring basis |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Dollars in thousands) |
|
Level I |
|
|
Level II |
|
|
Level III |
|
|
Total |
|
| |
|
September 30, 2012 |
|
|
Assets measured on a nonrecurring basis:
|
|
|
|
|
|
Impaired loans
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
9,250 |
|
|
$ |
9,250 |
|
|
Other real estate owned
|
|
|
0 |
|
|
|
0 |
|
|
|
51 |
|
|
|
51 |
|
|
Mortgage servicing rights
|
|
|
0 |
|
|
|
0 |
|
|
|
192 |
|
|
|
192 |
|
| |
|
| |
|
December 31, 2011 |
|
|
Impaired loans
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
6,741 |
|
|
$ |
6,741 |
|
|
Other real estate owned
|
|
|
0 |
|
|
|
0 |
|
|
|
10 |
|
|
|
10 |
|
|
Mortgage servicing rights
|
|
|
0 |
|
|
|
0 |
|
|
|
167 |
|
|
|
167 |
|
|
| Schedule of quantitative information of assets measured at fair value on a nonrecurring basis |
The following table presents additional quantitative information about assets
measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:
| |
|
|
|
|
|
|
|
|
| |
|
Fair value
estimate
|
|
Valuation
techniques
|
|
Unobservable
input
|
|
Range
|
| (Dollars in thousands) |
|
September 30, 2012 |
| |
|
|
|
Discounted |
|
Remaining term |
|
17 mos to 30 yrs |
| |
|
|
|
cash flow |
|
Discount rate |
|
3.75% to 8% |
| |
|
|
|
Appraisal of |
|
Appraisal adjustments (2)
|
|
0% to -50% |
|
Impaired loans
|
|
$9,250 |
|
collateral (1)
, (3
) |
|
Liquidation expense (2)
|
|
0% to -10% |
| |
|
|
|
Appraisal of |
|
Management discount |
|
|
|
Other real estate owned
|
|
51 |
|
collateral (1)
,
(3 ) |
|
for property type |
|
0% to -32% |
| |
|
|
|
Discounted |
|
Remaining term |
|
8 mos to 30 yrs |
|
Mortgage servicing rights
|
|
192 |
|
cash flow |
|
Discount rate |
|
2.1% |
| (1) |
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various inputs which are not identifiable.
|
| (2) |
Appraisals may be adjusted by management for qualitative factors such as estimated liquidation expenses. The range of liquidation expenses and other appraisals
adjustments are presented as a percent of the appraisal. |
| (3) |
Includes qualitative adjustments by management and estimated liquidation expenses. |
|