Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The following tables detail the financial asset amounts that are carried at fair value and measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

	Fair Value Measurements at March 31, 2015
					Significant		Significant
			Quoted Prices		Other		Other
			in Active Markets		Observable		Unobservable
			for Identical Assets		Inputs		Inputs
(in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available-for-sale securities:
Obligations of U.S. government agencies	$	26,927	$	-	$	26,927	$	-
Obligations of state and political subdivisions		11,307		-		11,307		-
U.S. government/ government-sponsored agencies:
Collateralized mortgage obligations - residential		25,792		-		25,792		-
Collateralized mortgage obligations - commercial		62,967		-		62,967		-
Residential mortgage-backed securities		74,002		-		74,002		-
Corporate debt securities		425		-		425		-
Negotiable certificates of deposit		2,245		-		2,245		-
Equity securities		970		970		-		-
Total available-for-sale securities	$	204,635	$	970	$	203,665	$	-

	Fair Value Measurements at December 31, 2014
					Significant		Significant
			Quoted Prices		Other		Other
			in Active Markets		Observable		Unobservable
			for Identical Assets		Inputs		Inputs
(in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available-for-sale securities:
Obligations of U.S. government agencies	$	29,276	$	-	$	29,276	$	-
Obligations of state and political subdivisions		24,509		-		24,509		-
U.S. government/ government-sponsored agencies:
Collateralized mortgage obligations - residential		26,231		-		26,231		-
Collateralized mortgage obligations - commercial		61,256		-		61,256		-
Residential mortgage-backed securities		74,098		-		74,098		-
Corporate debt securities		420		-		420		-
Negotiable certificates of deposit		2,232		-		2,232		-
Equity securities		967		967		-		-
Total available-for-sale securities	$	218,989	$	967	$	218,022	$	-

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following tables present a reconciliation and statement of operations classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month periods ended March 31, 2015 and 2014:

Fair Value Measurements
Using Significant Unobservable Inputs (Level 3)
	State and Political Subdivisions
	Three Months Ended March 31,
(in thousands)	2015		2014
Balance at January 1,	$	-	$	571
Amortization		-		-
Accretion		-		-
Purchases		-		-
Paydowns		-		(145)
Total gains or losses (realized/unrealized):
Included in earnings		-		-
Included in other comprehensive income		-		11
Balance at March 31,	$	-	$	437

Fair Value Measurements, Nonrecurring [Table Text Block]

The following tables present assets and liabilities measured at fair value on a non-recurring basis:

	Fair Value Measurements at March 31, 2015
			Quoted Prices in		Significant		Significant
			Active		Other		Other
			markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
(in thousands)	Fair Value (1)		(Level 1)		(Level 2)		(Level 3)
Collateral-dependent impaired loans	$	5,732	$	-	$	-	$	5,732
Other real estate owned	$	14	$	-	$	-	$	14

	Fair Value Measurements at December 31, 2014
			Quoted Prices in		Significant		Significant
			Active		Other		Other
			markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
(in thousands)	Fair Value (1)		(Level 1)		(Level 2)		(Level 3)
Collateral-dependent impaired loans	$	5,380	$	-	$	-	$	5,380
Other real estate owned	$	2,087	$	-	$	-	$	2,087

(1)

Represents carrying value and related write-downs for which adjustments are based on appraised value less estimated selling costs. Management may make adjustments to the appraised values as necessary to consider declines in real estate values since the time of the appraisal. Such adjustments are based on management’s knowledge of the local real estate markets.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table summarizes the estimated fair values of the Company’s financial instruments at March 31, 2015 and at December 31, 2014:

	Fair Value		March 31, 2015			December 31, 2014
(in thousands)	Measurement	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets
Cash and short term investments	Level 1	$	37,375	$	37,375	$	35,667	$	35,667
Securities available for sale	See previous table		204,635		204,635		218,989		218,989
FHLB and FRB Stock	Level 2		4,411		4,411		4,154		4,154
Loans held for sale	Level 2		-		-		603		603
Loans, net	Level 3		661,221		661,164		658,747		659,231
Accrued interest receivable	Level 2		2,118		2,118		2,075		2,075
Mortgage servicing rights	Level 3		278		855		333		898

Financial liabilities
Deposits	Level 2		775,111		765,927		795,336		779,986
Borrowed funds	Level 2		102,922		106,579		96,504		100,020
Accrued interest payable	Level 2		10,788		10,788		10,262		10,262

- 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.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details