Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 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	$	19,999	$	0	$	19,999	$	0
Obligations of U.S. Government agencies		4,022		0		4,022		0
Obligations of state and political subdivisions		72,992		0		72,992		0
Mortgage-backed securities		93,419		0		93,419		0
Money market investments		511		0		511		0
Corporate bonds		3,411		0		3,411		0
Other marketable equity securities		100		0		100		0
Total available-for-sale securities	$	194,454	$	0	$	194,454	$	0

				Fair Value Measurements at December 31, 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
Obligations of U.S. Government agencies		$	24,240		$	0		$	24,240		$	0
Obligations of state and political subdivisions			78,433			0			78,433			0
Mortgage-backed securities			107,396			0			107,396			0
Money market investments			631			0			631			0
Corporate bonds			3,393			0			3,393			0
Other marketable equity securities			99			0			99			0
Total available-for-sale securities		$	214,192		$	0		$	214,192		$	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 March 31, 2016 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	$	652	$	0	$	0	$	652
Commercial		434		0		0		434
Construction		98		0		0		98
Total	$	1,184	$	0	$	0	$	1,184

Other real estate owned
Residential 1-4 family	$	548	$	0	$	0	$	548
Commercial		605		0		0		605
Construction		1,090		0		0		1,090
Total	$	2,243	$	0	$	0	$	2,243

			Carrying Value at December 31, 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	$	952	$	0	$	0	$	952
Commercial		267		0		0		267
Construction		62		0		0		62
Total	$	1,281	$	0	$	0	$	1,281

Other real estate owned
Residential 1-4 family	$	724	$	0	$	0	$	724
Commercial		927		0		0		927
Construction		1,090		0		0		1,090
Total	$	2,741	$	0	$	0	$	2,741

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 March 31, 2016 (dollars in thousands)		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans
Residential 1-4 family real estate	$	652	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Commercial real estate	$	434	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Construction	$	98	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%

Other real estate owned
Residential 1-4 family	$	548	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Commercial	$	605	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00% - 36.86% (23.26	%)
Construction	$	1,090	Market comparables	Selling costs		6.72	%
				Liquidation discount		33.05	%

			Quantitative Information About Level 3 Fair Value Measurements
	Fair Value at December 31, 2015 (dollars in thousands)		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans
Residential 1-4 family real estate	$	952	Market comparables	Selling costs		7.25	%
				Liquidation discount		0.00% - 4.00% (3.75	%)
Commercial real estate	$	267	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%
Construction	$	62	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00	%

Other real estate owned
Residential 1-4 family	$	724	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00% - 7.17% (4.79	%)
Commercial	$	927	Market comparables	Selling costs		7.25	%
				Liquidation discount		4.00% - 24.70% (11.77	%)
Construction	$	1,090	Market comparables	Selling costs		6.72	%
				Liquidation discount		33.05	%

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 March 31, 2016 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	$	13,260	$	13,260	$	0	$	0
Securities available-for-sale		194,454		0		194,454		0
Restricted securities		970		0		970		0
Loans, net of allowances for loan losses		565,673		0		0		566,618
Bank-owned life insurance		24,626		0		24,626		0
Accrued interest receivable		2,937		0		2,937		0

Liabilities
Deposits	$	724,679	$	0	$	725,141	$	0
Overnight repurchase agreements		31,778		0		31,778		0
Accrued interest payable		220		0		220		0

			Fair Value Measurements at December 31, 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	$	36,990	$	36,990	$	0	$	0
Securities available-for-sale		214,192		0		214,192		0
Restricted securities		2,016		0		2,016		0
Loans, net of allowances for loan losses		560,737		0		0		559,488
Bank-owned life insurance		24,411		0		24,411		0
Accrued interest receivable		3,059		0		3,059		0

Liabilities
Deposits	$	746,471	$	0	$	746,740	$	0
Overnight repurchase agreements		25,950		0		25,950		0
Federal Home Loan Bank advances		25,000		0		25,501		0
Accrued interest payable		241		0		241		0