ASSETS MEASURED AT FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2013

ASSETS MEASURED AT FAIR VALUE [Abstract]

Schedule of assets measured on a recurring basis at fair value

The following table shows the value (in thousands) at June 30, 2013 and December 31, 2012 of each major category of assets measured on a recurring basis at fair value on the consolidated balance sheets, which consists of investment securities available-for-sale and loans held for sale. The changes in fair value were reflected as a component of other comprehensive income and did not affect net income.

	Fair Value Measurements at Reporting Date Using
Description	Carrying Value		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2013
Loans held for sale	$	38,447	$	38,447	$	—	$	—
Investment securities available-for-sale
Mutual funds – mortgage securities	$	696	$	696	$	—	$	—
Mutual funds – U.S. Government
securities		661		661		—		—
SBA securitized loan pools		4,719		—		4,719		—
Other debt securities		648		—		648		—
Residential mortgage-backed securities		38,169		—		38,169		—

Total investment securities available-for-sale	$	44,893	$	1,357	$	43,536	$	—

December 31, 2012
Investment securities available-for-sale
Mutual funds – mortgage securities	$	709	$	709	$	—	$	—
Mutual funds – U.S. Government
securities		673		673		—		—
Equity securities		482		482		—		—
SBA securitized loan pools		3,658		—		3,658		—
Other debt securities		732		—		732		—
Residential mortgage-backed securities		27,250		—		27,250		—

Total investment securities available-for-sale	$	33,504	$	1,864	$	31,640	$	—

Schedule of level of valuation assumptions used to determine each adjustment and carrying value of assets

For assets measured at fair value on a nonrecurring basis at June 30, 2013 and December 31, 2012, the following table provides in thousands the level of valuation assumptions used to determine each adjustment and the carrying value of the assets. For both other real estate owned and impaired loans, Level 3 assets are valued at the lesser of the unpaid principal balance of the loan, or the appraised value of the underlying collateral, net of estimated selling costs, as determined by a third party appraiser. There were no transfers between valuation levels for any assets during the six months ended June 30, 2013 or the year ended December 31, 2012.

	Fair Value Measurements at Reporting Date Using
			Quoted Prices
			In Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	Carrying		Assets		Inputs		Inputs
Description	Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2013
Other real estate owned:
Construction & Land Development	$	25,370	$	0	$	0	$	25,370
1-4 Family Residential		4,872		0		0		4,872
Commercial Real Estate		7,109		0		0		7,109
Total	$	37,351	$	0	$	0	$	37,351

Impaired loans:
Construction & Land Development	$	14,256	$	0	$	0	$	14,256
1-4 Family Residential		12,657		0		0		12,657
Commercial Real Estate		23,190		0		0		23,190
Commercial Business		77		0		0		77
Total	$	50,180	$	0	$	0	$	50,180

December 31, 2012
Other real estate owned:
Construction & Land Development	$	19,915	$	0	$	0	$	19,915
1-4 Family Residential		6,070		0		0		6,070
Commercial Real Estate		7,886		0		0		7,886
Total	$	33,871	$	0	$	0	$	33,871

Impaired loans:
Construction & Land Development	$	19,674	$	0	$	0	$	19,674
1-4 Family Residential		14,386		0		0		14,386
Commercial Real Estate		18,139		0		0		18,139
Commercial Business		6		0		0		6
Total	$	52,205	$	0	$	0	$	52,205

- 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).

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- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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CECIL BANCORP INC 10-Q