Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Balances of Assets Measured at Fair Value on a Recurring Basis

The following tables present the balances of assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 (in thousands).



			Fair Value Measurements at September 30, 2017
Description	Balance as of September 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale
U.S. agency and mortgage-backed securities	$	77,507	$	—	$	77,507	$	—
Obligations of states and political subdivisions	15,580		—		15,580		—
Corporate equity securities	15		15		—		—
	$	93,102	$	15	$	93,087	$	—

			Fair Value Measurements at December 31, 2016
Description	Balance as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale
U.S. agency and mortgage-backed securities	$	80,171	$	—	$	80,171	$	—
Obligations of states and political subdivisions	14,620		—		14,620		—
Corporate equity securities	11		11		—		—
	$	94,802	$	11	$	94,791	$	—

Summary of Assets Measured at Fair Value on a Nonrecurring Basis

The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis during the periods (dollars in thousands):



		Fair Value Measurements at September 30, 2017
Description	Balance as of September 30, 2017	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	250	—	—	250



			Fair Value Measurements at December 31, 2016
Description	Balance as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans, net	$	116	$	—	$	—	$	116
Other real estate owned	250		—		—		250

Quantitative Information about Level 3 Fair Value Measurements



	Quantitative information about Level 3 Fair Value Measurements for September 30, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
Other real estate owned	$	250	Property appraisals	Selling cost	—	%

	Quantitative information about Level 3 Fair Value Measurements for December 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
Impaired loans, net	$	116	Property appraisals	Selling cost	10	%
Other real estate owned	$	250	Property appraisals	Selling cost	—	%

Carrying Values and Estimated Fair Values of Company's Financial Instruments

The carrying values and estimated fair values of the Company’s financial instruments at September 30, 2017 and December 31, 2016 are as follows (in thousands):



	Fair Value Measurements at September 30, 2017 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value
Financial Assets
Cash and short-term investments	$	33,642	$	33,642	$	—	$	—	$	33,642
Securities available for sale	93,102		15		93,087		—		93,102
Securities held to maturity	49,376		—		47,928		1,488		49,416
Restricted securities	1,570		—		1,570		—		1,570
Loans held for sale	660		—		660		—		660
Loans, net	509,406		—		—		508,911		508,911
Bank owned life insurance	14,232		—		14,232		—		14,232
Accrued interest receivable	1,886		—		1,886		—		1,886
Financial Liabilities
Deposits	$	656,262	$	—	$	530,230	$	124,801	$	655,031
Subordinated debt	4,943		—		—		4,756		4,756
Junior subordinated debt	9,279		—		—		9,632		9,632
Accrued interest payable	95		—		95		—		95



	Fair Value Measurements at December 31, 2016 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value
Financial Assets
Cash and short-term investments	$	41,092	$	41,092	$	—	$	—	$	41,092
Securities available for sale	94,802		11		94,791		—		94,802
Securities held to maturity	53,398		—		51,223		1,486		52,709
Restricted securities	1,548		—		1,548		—		1,548
Loans held for sale	337		—		337		—		337
Loans, net	480,746		—		—		481,475		481,475
Bank owned life insurance	13,928		—		13,928		—		13,928
Accrued interest receivable	1,746		—		1,746		—		1,746
Financial Liabilities
Deposits	$	645,570	$	—	$	517,143	$	127,179	$	644,322
Subordinated debt	4,930		—		—		4,715		4,715
Junior subordinated debt	9,279		—		—		9,075		9,075
Accrued interest payable	95		—		95		—		95