Financial Instruments

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Financial Instruments

Note 17 – Financial Instruments

Financial instruments as of the dates indicated were as follows: 

						Quoted Prices
						In Active		Significant
						Markets for		Other		Significant
						Identical		Observable		Unobservable
		Carrying		Estimated		Assets		Inputs		Inputs
(Dollars in thousands)		Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2015
Assets
Cash and due from banks	$	11,187	$	11,187	$	11,187	$	—	$	—
Securities available for sale		160,136		160,136		953		147,384		11,799
Federal Home Loan Bank and Federal Reserve Bank stock		3,187		3,187		—		3,187		—
Loans held for sale		4,957		5,109		—		5,109		—
Loans, net		345,110		349,875		—		—		349,875
Liabilities
Noninterest-bearing deposits		122,937		122,937		—		122,937		—
Interest-bearing deposits		351,759		353,113		—		353,113		—
Repurchase agreements		9,460		9,460		—		9,460		—
Federal Home Loan Bank advances		11,332		12,028		—		12,028		—
December 31, 2014
Assets
Cash and due from banks	$	16,650	$	16,650	$	16,650	$	—	$	—
Securities available for sale		142,521		142,521		775		130,104		11,642
Federal Home Loan Bank and Federal Reserve Bank stock		3,185		3,185		—		3,185		—
Loans held for sale		2,170		2,237		—		2,237		—
Loans, net		341,940		345,656		—		—		345,656
Liabilities
Noninterest-bearing deposits		113,006		113,006		—		113,006		—
Interest-bearing deposits		321,822		321,757		—		321,757		—
Repurchase agreements		26,743		26,743		—		26,743		—
Federal Home Loan Bank advances		18,363		18,402		—		18,402		—

The estimated fair values approximate the carrying amounts for all financial instruments except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 18. The estimated fair value for loans is based on the rates charged at December 31 for new loans with similar maturities, applied until the loan is assumed to reprice or be paid. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. The estimated fair value of deposits is based on comparing the average rate paid on deposits compared to the three month Libor rate which is assumed to be the replacement value of these deposits. At December 31, 2015, all average rates were lower than the three month Libor rate causing fair values to be higher than carrying amounts. The estimated fair values for time deposits and FHLB advances are based on the rates paid at December 31 for new deposits or FHLB advances, applied until maturity. The estimated fair values for other financial instruments and off-balance sheet loan commitments are considered nominal.