Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value of Financial Instruments

Schedule of estimated fair values of financial instruments

	Carrying				Fair Value Measurements Using
(Dollars in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
June 30, 2016
Assets
Cash and cash equivalents	$	63,878	$	63,878	$	63,878	$	—	$	—
Investment securities held to maturity		455,991		474,058		—		473,066		992
Loans held for sale		353		370		—		370		—
Loans receivable, net		1,259,339		1,306,902		—		—		1,306,902
FHLB stock		4,945		4,945		—		4,945		—
FRB stock		3,062		3,062		—		3,062		—
Accrued interest receivable		4,812		4,812		6		1,205		3,601
Interest rate contracts		142		142		—		142		—
Liabilities
Deposits		1,469,754		1,471,549		—		1,244,651		226,898
Advances from the Federal Home Loan Bank		69,000		70,032		—		70,032		—
Securities sold under agreements to repurchase		55,000		55,808		—		55,808		—
Accrued interest payable		245		245		—		2		243
Interest rate contracts		111		111		—		111		—
December 31, 2015
Assets
Cash and cash equivalents	$	65,919	$	65,919	$	65,919	$	—	$	—
Investment securities held to maturity		493,059		497,982		—		497,066		916
Loans held for sale		2,139		2,205		—		2,205		—
Loans receivable, net		1,188,649		1,208,300		—		—		1,208,300
FHLB stock		4,790		4,790		—		4,790		—
FRB stock		3,022		3,022		—		3,022		—
Accrued interest receivable		4,684		4,684		5		1,310		3,369
Interest rate contracts		71		71		—		71		—
Liabilities
Deposits		1,445,103		1,445,484		—		1,221,069		224,415
Advances from the Federal Home Loan Bank		69,000		69,191		—		69,191		—
Securities sold under agreements to repurchase		55,000		55,280		—		55,280		—
Accrued interest payable		237		237		—		—		237
Interest rate contracts		77		77		—		77		—

Schedule of assets and liabilities measured at fair value on a recurring basis

(Dollars in thousands)	Level 1		Level 2		Level 3		Total
June 30, 2016
Interest rate contracts — assets	$	—	$	142	$	—	$	142
Interest rate contracts — liabilities		—		(111)		—		(111)
December 31, 2015
Interest rate contracts — assets	$	—	$	71	$	—	$	71
Interest rate contracts — liabilities		—		(77)		—		(77)

Schedule of assets measured at fair value on a nonrecurring basis and related gains and losses

									Total Gains
(Dollars in thousands)	Level 1		Level 2		Level 3		Total		(Losses)
June 30, 2016
Trust preferred securities	$	—	$	—	$	992	$	992	$	76
Mortgage servicing assets		—		—		341		341		(49)
December 31, 2015
Trust preferred securities	$	—	$	—	$	916	$	916	$	226

Schedule of significant unobservable inputs for Level 3 nonrecurring fair value measurements

				Unobservable
(Dollars in thousands)	Fair Value		Valuation Technique	Input	Value
June 30, 2016:
Trust preferred securities	$	992	Discounted cash flow	Discount rate		Three-month LIBOR plus 20.00%
Mortgage servicing assets		341	Discounted cash flow	Discount rate		10.50%
				Prepayment speed (PSA)		166.3 – 361.3
				Annual cost to service (per loan, in dollars)	$	65
December 31, 2015:
Trust preferred securities	$	916	Discounted cash flow	Discount rate		Three-month LIBOR plus 20.00%