Disclosures About Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Level 3 inputs were used in determining fair value.

(dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
March 31, 2014	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted              Average)
Impaired Loans	$	326	Appraisal of collateral (1)	Appraisal adjustments (2)	-25.8% to 0% (-10.7%)
				Liquidation expenses (2)	13.9% to 28.5% (21.8%)
Mortgage Servicing Rights	$	1	Discounted Cash Flow	Prepayment rate (3)	7.8% to 17.2% (10.5%)
				Discount rate	9.5%
(dollars in thousands)	Quantitative Information about Level 3 Fair Value  Measurements
December 31, 2013	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted              Average)
Impaired Loans	$	372	Appraisal of collateral (1)	Appraisal adjustments (2)	0%
				Liquidation expenses (2)	15.8% to 23.1% (20.5%)
Mortgage Servicing Rights	$	1	Discounted Cash Flow	Prepayment rate (3)	7.8% to 17.2% (10.5%)
				Discount rate	9.5%

(1) The fair value is determined through independent appraisals by certified appraisers or internal evaluators of the underlying collateral.

(2) Appraisals and evaluations may be adjusted by management for qualitative factors and estimated liquidation expenses. The range and weighted average of liquidation expenses are expressed as a percent of discounted collateral value and other appraisal adjustments are presented as a percentage of the appraised amounts.

(3) Conditional prepayment rates reflect future long-run prepayment estimates by bond dealers for the nation as a whole as well as the Company’s actual prepayment history. Prepayment rates are highly sensitive to market interest rates.

Estimates of Fair Values of Financial Instruments

The estimates of fair values of financial instruments are summarized as follows at March 31, 2014 and December 31, 2013:

	March 31, 2014
	Carrying		Estimated Fair Value
(Amounts Expressed in Thousands)	Amount		Level I		Level II		Level III		Total
Financial assets:
Cash and cash equivalents	$	23,852	$	23,852	$	—	$	—	$	23,852
Investment securities		205,679		196		205,483		—		205,679
Loans		89,104		—		—		90,096		90,096
Accrued interest receivable		1,298		1,298		—		—		1,298
Financial liabilities:
Deposits		279,554		193,847		65,407		—		259,254
Federal funds purchased and repurchase agreements		20,739		20,739		—		—		20,739
Federal Home Loan Bank borrowings		3,492		—		3,885		—		3,885
Accrued interest payable		124		124		—		—		124
	December 31, 2013
	Carrying		Estimated Fair Value
(Amounts Expressed in Thousands)	Amount		Level I		Level II		Level III		Total
Financial assets:
Cash and cash equivalents	$	31,875	$	31,875	$	—	$	—	$	31,875
Investment securities		199,955		195		199,760		—		199,955
Loans		91,537		—		—		91,413		91,413
Accrued interest receivable		1,168		1,168		—		—		1,168
Financial liabilities:
Deposits		285,877		195,135		67,308		—		262,443
Federal funds purchased and repurchase agreements		20,215		20,215		—		—		20,215
Federal Home Loan Bank borrowings		3,516		—		3,917		—		3,917
Accrued interest payable		134		134		—		—		134