Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Assets measured at fair value on a recurring basis

The following table presents the balances of certain assets measured at fair value on a recurring basis as of the dates indicated:

			Fair Value Measurements at September 30, 2015 Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Available-for-sale securities
U.S. Treasury securities	$	20,000	$	0	$	20,000	$	0
Obligations of U.S. Government agencies		4,136		0		4,136		0
Obligations of state and political subdivisions		48,867		0		48,867		0
Mortgage-backed securities		53,468		0		53,468		0
Money market investments		680		0		680		0
Corporate bonds		3,303		0		3,303		0
Other marketable equity securities		85		0		85		0
Total available-for-sale securities	$	130,539	$	0	$	130,539	$	0

			Fair Value Measurements at December 31, 2014 Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Available-for-sale securities
U.S. Treasury securities	$	20,000	$	0	$	20,000	$	$0
Obligations of U.S. Government agencies		4,618		0		4,618		0
Obligations of state and political subdivisions		50,246		0		50,246		0
Mortgage-backed securities		60,888		0		60,888		0
Money market investments		719		0		719		0
Corporate bonds		2,790		0		2,790		0
Other marketable equity securities		85		0		85		0
Total available-for-sale securities	$	139,346	$	0	$	139,346	$	$0

Assets measured at fair value on a nonrecurring basis

The following table presents the assets carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan's expected future cash flows, discounted at the interest rate of the loan rather than at a market rate. These loans are not carried on the consolidated balance sheets at fair value and, as such, are not included in the table below.

			Carrying Value at September 30, 2015 Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Impaired loans
Mortgage loans on real estate:
Residential 1-4 family	$	191	$	0	$	0	$	191
Commercial		176		0		0		176
Construction		43		0		0		43
Second mortgages		43		0		0		43
Total	$	453	$	0	$	0	$	453

Other real estate owned
Residential 1-4 family	$	784	$	0	$	0	$	784
Commercial		1,154		0		0		1,154
Construction		1,590		0		0		1,590
Total	$	3,528	$	0	$	0	$	3,528

			Carrying Value at December 31, 2014 Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Impaired loans
Mortgage loans on real estate:
Residential 1-4 family	$	399	$	0	$	0	$	399
Commercial		1,973		0		0		1,973
Construction		264		0		0		264
Second mortgages		104		0		0		104
Total	$	2,740	$	0	$	0	$	2,740

Other real estate owned
Residential 1-4 family	$	884	$	0	$	0	$	884
Commercial		1,198		0		0		1,198
Construction		2,139		0		0		2,139
Total	$	4,221	$	0	$	0	$	4,221

Fair Value Inputs, Assets, Quantitative Information

The following table displays quantitative information about Level 3 Fair Value Measurements as of the dates indicated:

			Quantitative Information About Level 3 Fair Value Measurements
	Fair Value at September 30, 2015 (dollars in thousands)		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans
Residential 1-4 family real estate	$	191	Market comparables	Selling costs		0.00% - 7.25% (6.32	%)
				Liquidation discount		4.00% - 100.00% (16.34	%)
Commercial real estate	$	176	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Construction	$	43	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Second mortgages	$	43	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%

Other real estate owned
Residential 1-4 family	$	784	Market comparables	Selling costs		0.00% - 7.25% (5.17	%)
				Liquidation discount		4.00% - 85.00% (26.97	%)
Commercial	$	1,154	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Construction	$	1,590	Market comparables	Selling costs		6.75% - 7.25% (7.22	%)
				Liquidation discount		0.00% - 5.00% (4.86	%)

			Quantitative Information About Level 3 Fair Value Measurements
	Fair Value at December 31, 2014 (dollars in thousands)		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans
Residential 1-4 family real estate	$	399	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Commercial real estate	$	1,973	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Construction	$	264	Market comparables	Selling costs		0.00% - 7.25% (1.18	%)
				Liquidation discount		4.00% - 28.71% (24.70	%)
Second mortgages	$	104	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%

Other real estate owned
Residential 1-4 family	$	884	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00% - 10.00% (8.09	%)
Commercial	$	1,198	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00% - 10.00% (5.91	%)
Construction	$	2,139	Market comparables	Selling costs		7.25% - 11.25% (7.38	%)
				Liquidation discount		0.00% - 10.00% (2.68	%)

Estimated fair values and related carrying or notional amounts of financial instruments

The estimated fair values, and related carrying or notional amounts, of the Company's financial instruments as of the dates indicated are as follows:

			Fair Value Measurements at September 30, 2015 Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash and cash equivalents	$	12,709	$	12,709	$	0	$	0
Securities available-for-sale		130,539		0		130,539		0
Securities held-to-maturity		83,390		0		86,980		0
Restricted securities		2,016		0		2,016		0
Loans, net of allowances for loan losses		563,038		0		0		563,310
Bank-owned life insurance		24,189		0		24,189		0
Accrued interest receivable		2,979		0		2,979		0

Liabilities
Deposits	$	729,127	$	0	$	729,964	$	0
Overnight repurchase agreements		25,830		0		25,830		0
Term repurchase agreements		412		0		411		0
Federal Home Loan Bank advances		25,000		0		25,807		0
Accrued interest payable		242		0		242		0

			Fair Value Measurements at December 31, 2014 Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash and cash equivalents	$	33,305	$	33,305	$	0	$	0
Securities available-for-sale		139,346		0		139,346		0
Securities held-to-maturity		90,089		0		94,406		0
Restricted securities		2,293		0		2,293		0
Loans, net of allowances for loan losses		528,919		0		0		527,138
Bank-owned life insurance		23,525		0		23,525		0
Accrued interest receivable		2,695		0		2,695		0

Liabilities
Deposits	$	716,654	$	0	$	717,260	$	0
Overnight repurchase agreements		37,404		0		37,404		0
Term repurchase agreements		412		0		410		0
Federal Home Loan Bank advances		30,000		0		31,536		0
Accrued interest payable		255		0		255		0