Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Financial Instruments Measured At Fair Value On Recurring Basis




(in thousands)		Level 1		Level 2		Level 3		Fair Value

September 30, 2014
Securities available-for-sale:
U.S. government agencies	$	-	$	28,818	$	-	$	28,818
States and political subdivisions		-		31,593		-		31,593
Mortgage-backed securities		-		39,197		-		39,197
Mortgage servicing rights		-		-		520		520

December 31, 2013
Securities available-for-sale:
U.S. government agencies	$	-	$	31,992	$	-	$	31,992
States and political subdivisions		-		31,880		-		31,880
Mortgage-backed securities		-		35,793		-		35,793
Mortgage servicing rights		-		-		509		509

Changes In Fair Value For Mortgage Servicing Rights



	Three months ended September 30,
(in thousands)	2014		2013
Mortgage servicing rights - June 30	$	471	$	503
Gains (losses) included in earnings		(12)		6
Additions from loan sales		61		-
Mortgage servicing rights -September 30	$	520	$	509


	Nine months ended September 30,
(in thousands)	2014		2013
Mortgage servicing rights - December 31	$	509	$	467
Gains (losses) included in earnings		(81)		34
Additions from loan sales		92		8
Mortgage servicing rights - September 30	$	520	$	509

Quantitative Information About Significant Unobservable Inputs Used In The Fair Value Measurement Of MSRs




	9/30/2014		9/30/2013
Servicing fees	0.25	%	0.25	%
Discount rate	10.03	%	10.04	%
Prepayment rate (CPR)	10.14	%	10.84	%

Financial Instruments Measured At Fair Value On Nonrecurring Basis




(in thousands)		Level 1	Level 2	Level 3		Fair Value

September 30, 2014
Impaired loans	$	-	-	17,030	$	17,030

December 31, 2013
Impaired loans	$	-	-	17,378	$	17,378

Estimated Fair Value Of The Company's Financial Instruments




	September 30, 2014				December 31, 2013
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
		(in thousands)				(in thousands)
Financial assets:
Level 1:
Cash and cash equivalents	$	12,218	$	12,218	$	41,954	$	41,954
Level 2:
Available for sale securities		99,608		99,608		99,665		99,665
FHLB and FRB stock		2,855		2,855		2,831		2,831
Level 3:
Held to maturity securities		1,760		1,728		2,384		2,319
Loans and leases, net		673,385		670,489		635,493		640,770
Mortgage servicing rights		520		520		509		509

Financial liabilities:
Level 1:
Demand deposits	$	153,065	$	153,065	$	139,973	$	139,973
NOW deposits		72,344		72,344		65,927		65,927
Regular savings deposits		367,277		367,277		390,575		390,575
Junior subordinated debentures		11,330		11,330		11,330		11,330
Commitments to extend credit		288		288		401		401
Securities sold under agreement to
repurchase		11,496		11,496		13,351		13,351
Level 2:
Other borrowed funds		12,150		12,150		9,000		9,171
Level 3:
Time deposits		117,110		117,588		110,137		112,270

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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