Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Measurements

Schedule of assets measured at fair value on a recurring basis

	Fair Value Measurements at June 30, 2014 (Dollars in Thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities available-for-sale
U. S. government agencies and government sponsored entities		$	5,924
State and municipal		21,302
Agency mortgage-backed securities -residential		25,740
Trust preferred security				1,440
Corporate bonds		999
Total investment securities	—	$	53,965	$	1,440

	Fair Value Measurements at December 31, 2013 (Dollars in Thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities available-for-sale
U. S. government agencies and government sponsored entities		$	5,819
State and municipal		19,676
Agency mortgage-backed securities -residential		23,744
Trust preferred security		1,400
Corporate Bond		994
Total investment securities	—	$	51,633	—

Schedule of financial assets measured at fair value on a non-recurring basis

	Fair Value Measurements at June 30, 2014 (Dollars in Thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities available-for-sale
U. S. government agencies and government sponsored entities		$	5,924
State and municipal		21,302
Agency mortgage-backed securities -residential		25,740
Trust preferred security				1,440
Corporate bonds		999
Total investment securities	—	$	53,965	$	1,440

	Fair Value Measurements at December 31, 2013 (Dollars in Thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities available-for-sale
U. S. government agencies and government sponsored entities		$	5,819
State and municipal		19,676
Agency mortgage-backed securities -residential		23,744
Trust preferred security		1,400
Corporate Bond		994
Total investment securities	—	$	51,633	—

Schedule of quantitative and qualitative information about Level 3 fair value measurements for financial instruments measured on a non-recurring basis

	June 30, 2014		Valuation Techniques	Unobservable Inputs (Dollars in thousands)	Range (Weighted Avg)
Impaired loans:
Commercial	$	26	Market Approach	Discounts to allow for market value of assets	(50.00%)
Commercial RE	243		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	20%-50% (34.08%)
Residential	157		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	0%-20% (11.94%)
Other real estate owned:
Commercial RE	471		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	8%-55% (44.24%)
Residential	127		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	6%-69% (17.36%)

	December 31, 2013		Valuation Techniques	Unobservable Inputs (Dollars in thousands)	Range (Weighted Avg)
Impaired loans:
Commercial	$	530	Market Approach	Discounts to allow for market value of assets	0%-50% (39.42%)
Commercial RE	808		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	20%-50% (24.92%)
Residential	739		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	0%-20% (18.43%)
Other real estate owned:
Residential	317		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	6%-42.3% (21.47%)
Commercial RE	516		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	7.9%-54.5% (42.93%)

Schedule of carrying amount and estimated fair values of financial instruments

			Fair Value Measurements at June 30, 2014
	Carrying Amount		Level 1		Level 2	Level 3	Total
Financial Assets
Cash and cash equivalents	$	22,830	$	22,830			$	22,830
Loans held for sale	286				291		291
Loans, net of allowance	306,076					313,542	313,542
Accrued interest receivable	1,536				284	1,252	1,536
Federal Home Loan Bank stock	2,025						N/A
Financial Liabilities
Demand and savings deposits	$	184,265	$	150,376			$	150,376
Time deposits	161,545				162,395		162,395
FHLB advances	22,000				21,868		21,868
Subordinate debentures	5,000					2,836	2,836
Accrued interest payable	239		13		226		239

			Fair Value Measurements at December 31, 2013
	Carrying Amount		Level 1		Level 2	Level 3	Total
Financial Assets
Cash and cash equivalents	$	37,062	$	37,062			$	37,062
Loans, net of allowance	288,338					295,850	295,850
Accrued interest receivable	1,554				274	1,280	1,554
Federal Home Loan Bank stock	2,025						N/A
Financial Liabilities
Demand and savings deposits	$	183,569	$	144,220			$	144,220
Time deposits	159,382				160,284		160,284
FHLB advances	22,000				21,794		21,794
Subordinate debentures	5,000					2,836	2,836
Accrued interest payable	243		15		228		243