Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Measurements

Schedule of assets measured at fair value on a recurring basis

	Fair Value Measurements at:
	(Dollars in Thousands)						(Dollars in Thousands)
	June 30, 2016						December 31, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		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			$	3,000					$	2,994
Agency mortgage-backed securites-residential			28,783						29,657
State and municipal			24,504						25,222
Trust preferred security					1,260						1,340
Corporate bonds			994						987
Total investment securities	$	—	$	57,281	$	1,260	$	—	$	58,860	$	1,340

Schedule of reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

	Trust Preferred Security
	2016			2015
Balance of recurring Level 3 assets at January 1	$	1,340		$	1,480
Total losses for the period:
Included in other comprehensive income	(80		)	(30		)
Balance of recurring Level 3 assets at June 30	$	1,260		$	1,450

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

	June 30, 2016		Valuation Techniques	Unobservable Inputs (Dollars in thousands)	Range (Weighted Avg)
Impaired loans:
Residential RE	$	24	Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	(50%)
Other real estate owned:
Residentiall RE	66		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	48%-54% (51.63%)

	December 31, 2015		Valuation Techniques	Unobservable Inputs (Dollars in thousands)	Range (Weighted Avg)
Impaired loans:
Commercial RE	$	260	Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	(50.00%)
Residential	79		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	20%-60% (30.00%)
Other real estate owned:
Commercial RE	100		Sales Comparison	Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition	8%-40% (33.65%)

Schedule of carrying amount and estimated fair values of financial instruments

			Fair Value Measurements at
	Carrying		June 30, 2016
	Amount		Level 1		Level 2	Level 3	Total
Financial Assets
Cash and cash equivalents	$	7,354	$	7,354			$	7,354
Interest-bearing deposits in other financial institutions	2,728		2,761				2,761
Available-for-sale securities	57,862				57,281	1,260	58,541
Loans, net of allowance	342,064					343,856	343,856
Loans held for sale	118				121		121
Accrued interest receivable	1,536		18		300	1,218	1,536
Federal Home Loan Bank stock	2,025						N/A
Financial Liabilities
Demand and savings deposits	$	213,574	$	213,574			$	213,574
Time deposits	139,859				140,196		140,196
FHLB advances	35,000				35,023		35,023
Other borrowings	1,000				1,000		1,000
Subordinate debentures	5,000					2,434	2,434
Accrued interest payable	223		11		182	30	223

			Fair Value Measurements at
			December 31, 2015
	Carrying Amount		Level 1		Level 2		Level 3	Total
Financial Assets
Cash and cash equivalents	$	15,255	$	15,255	$		$	$	15,255
Interest-bearing deposits in other financial institutions	2,728		$	2,728				2,728
Available-for-sale securities	59,965				$	58,860	1,340	60,200
Loans, net of allowance	325,866						326,886	326,886
Accrued interest receivable	1,680				337		1,343	1,680
Federal Home Loan Bank stock	2,025							N/A
Financial Liabilities
Demand and savings deposits	$	216,857	$	216,857				$	216,857
Time deposits	153,531				153,801			153,801
FHLB advances	13,000				12,902			12,902
Other borrowings	2,000				2,000			2,000
Subordinate debentures	5,000						2,434	2,434
Accrued interest payable	213		9		177		27	213