Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands):



	Balance as of September 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Debt securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	18,288	$	—	$	18,288	$	—
Mortgage-backed securities	112,548		—		112,548		—
Municipal securities	7,792		—		7,792		—
Total securities available-for-sale	$	138,628	$	—	$	138,628	$	—



	Balance as of December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Debt securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	22,743	$	—	$	22,743	$	—
Mortgage-backed securities:	136,021		—		136,021		—
Municipal securities	7,649		—		7,649		—
Total securities available-for-sale	$	166,413	$	—	$	166,413	$	—

Fair Value, Assets and Liabilities Measured on Non-Recurring Basis

The tables below present information about assets and liabilities on the balance sheet at September 30, 2016 and December 31, 2015 which are measured at fair value on a nonrecurring basis.



	Balance as of September 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Impaired loans	$	192	$	—	$	—	$	192
Foreclosed assets	2,536		—		—		2,536

Note 7. Fair Value Disclosures, Continued

Measurements of Fair Value (Continued):



	Balance as of December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Impaired loans	$	160	$	—	$	—	$	160
Foreclosed assets	5,358		—		—		5,358

Fair Value, Assets Measured On Non-Recurring Basis, Unobservable Input Reconciliation

For Level 3 assets measured at fair value on a non-recurring basis as of September 30, 2016, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).



	Balance as of September 30, 2016		Valuation Technique	Significant Other Unobservable Input	Weighted Average of Input
Impaired loans	$	192	Cash Flow	Evaluation of Collectability	—	%
Foreclosed assets	2,536		Appraisal	Appraisal Discounts	29.5	%

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments at September 30, 2016 and December 31, 2015 are as follows (in thousands):



	September 30, 2016				December 31, 2015
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	$	58,587	$	58,587	$	79,965	$	79,965
Securities available for sale	138,628		138,628		166,413		166,413
Restricted investments	4,451		4,451		4,451		4,451
Loans, net	792,178		804,515		723,361		721,338

Liabilities:
Noninterest-bearing demand deposits	145,509		145,509		131,419		131,419
Interest-bearing demand deposits	152,216		152,216		149,424		149,424
Money Market and Savings deposits	271,259		271,259		236,901		236,901
Time deposits	291,857		292,376		340,739		342,873
Securities sold under agreements to repurchase	24,202		24,202		28,068		28,068
Federal Home Loan Bank advances and other borrowings	43,048		43,052		34,187		34,169