XML 67 R46.htm IDEA: XBRL DOCUMENT v3.6.0.2
Fair Values of Financial Instruments and Interest Rate Risk (Tables)
12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Comparison of Carrying Amounts and Estimated Fair Value of Financial Instruments

The following table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of December 31, 2016 and December 31, 2015:

 

  

 

Carrying

 

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

Value

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(dollars in thousands)

 

 

 

 

 

FINANCIAL ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

45,968

 

 

$

45,995

 

 

$

43,478

 

 

$

2,517

 

 

$

 

Securities available for sale

 

 

105,899

 

 

 

105,899

 

 

 

4,014

 

 

 

101,885

 

 

 

 

Securities held to maturity

 

 

11,990

 

 

 

11,934

 

 

 

 

 

 

11,934

 

 

 

 

Loans held for investment, net

 

 

339,122

 

 

 

337,348

 

 

 

 

 

 

 

 

 

337,348

 

Loans held for sale

 

 

5,823

 

 

 

5,685

 

 

 

 

 

 

5,685

 

 

 

 

Restricted stock

 

 

1,052

 

 

 

1,052

 

 

 

1,052

 

 

 

 

 

 

 

Accrued interest receivable

 

 

1,629

 

 

 

1,629

 

 

 

 

 

 

 

 

 

1,629

 

FINANCIAL LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

485,719

 

 

$

447,784

 

 

$

 

 

$

447,784

 

 

$

 

Short-term borrowings

 

 

2,674

 

 

 

2,674

 

 

 

 

 

 

2,674

 

 

 

 

Long-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Junior subordinated debt

 

 

9,534

 

 

 

9,673

 

 

 

 

 

 

 

 

 

9,673

 

Accrued interest payable

 

 

151

 

 

 

151

 

 

 

 

 

 

 

 

 

151

 

 

  

 

Carrying

 

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

Value

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(dollars in thousands)

 

 

 

 

 

FINANCIAL ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

68,933

 

 

$

68,973

 

 

$

65,198

 

 

$

3,775

 

 

$

 

Securities available for sale

 

 

89,258

 

 

 

89,258

 

 

 

4,012

 

 

 

85,246

 

 

 

 

Securities held to maturity

 

 

11,242

 

 

 

11,242

 

 

 

 

 

 

11,242

 

 

 

 

Loans held for investment, net

 

 

317,248

 

 

 

313,649

 

 

 

 

 

 

 

 

 

313,649

 

Loans held for sale

 

 

5,922

 

 

 

5,922

 

 

 

 

 

 

5,922

 

 

 

 

Restricted stock

 

 

1,040

 

 

 

1,040

 

 

 

1,040

 

 

 

 

 

 

 

Accrued interest receivable

 

 

1,564

 

 

 

1,564

 

 

 

 

 

 

 

 

 

1,564

 

FINANCIAL LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

467,733

 

 

$

442,619

 

 

$

 

 

$

442,619

 

 

$

 

Short-term borrowings

 

 

5,758

 

 

 

5,758

 

 

 

 

 

 

5,758

 

 

 

 

Long-term borrowings

 

 

13

 

 

 

13

 

 

 

 

 

 

13

 

 

 

 

 

Junior subordinated debt

 

 

9,534

 

 

 

9,688

 

 

 

 

 

 

 

 

 

9,688

 

Accrued interest payable

 

 

168

 

 

 

168

 

 

 

 

 

 

 

 

 

168

 

 

Fair Value Information for Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table provides fair value information for assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015:

 

  

 

December 31, 2016

 

 

 

(dollars in thousands)

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Treasury

 

$

4,014

 

 

$

4,014

 

 

$

 

 

$

 

US Gov’t

 

 

57,671

 

 

 

 

 

 

57,671

 

 

 

 

Mortgage-backed securities and CMO’s

 

 

25,648

 

 

 

 

 

 

25,648

 

 

 

 

State and political subdivisions

 

 

13,536

 

 

 

 

 

 

13,536

 

 

 

 

Corporate bonds

 

 

5,030

 

 

 

 

 

 

5,030

 

 

 

 

Total assets at fair value

 

$

105,899

 

 

$

4,014

 

 

$

101,885

 

 

$

 

Total liabilities at fair value

 

$

 

 

$

 

 

$

 

 

$

 

 

  

 

December 31, 2015

 

 

 

(dollars in thousands)

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Treasury

 

$

4,012

 

 

$

4,012

 

 

$

 

 

$

 

US Gov’t

 

 

36,070

 

 

 

 

 

 

36,070

 

 

 

 

Mortgage-backed securities and CMO’s

 

 

29,773

 

 

 

 

 

 

29,773

 

 

 

 

State and political subdivisions

 

 

14,039

 

 

 

 

 

 

14,039

 

 

 

 

Corporate bonds

 

 

5,364

 

 

 

 

 

 

5,364

 

 

 

 

Total assets at fair value

 

$

89,258

 

 

$

4,012

 

 

$

85,246

 

 

$

 

Total liabilities at fair value

 

$

 

 

$

 

 

$

 

 

$

 

 

Assets Measured at Fair Value on Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2016 and December 31, 2015:

 

  

 

December 31, 2016

 

 

 

(dollars in thousands)

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Impaired loans

 

$

2,217

 

 

$

 

 

$

 

 

$

2,217

 

Other real estate owned

 

 

3,130

 

 

 

 

 

 

 

 

 

3,130

 

Total assets at fair value

 

$

5,347

 

 

$

 

 

$

 

 

$

5,347

 

Total liabilities at fair value

 

$

 

 

$

 

 

$

 

 

$

 

 

  

 

December 31, 2015

 

 

 

(dollars in thousands)

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Impaired loans

 

$

3,108

 

 

$

 

 

$

 

 

$

3,108

 

Other real estate owned

 

 

2,909

 

 

 

 

 

 

 

 

 

2,909

 

Total assets at fair value

 

$

6,017

 

 

$

 

 

$

 

 

$

6,017

 

Total liabilities at fair value

 

$

 

 

$

 

 

$

 

 

$

 

 

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

 

  

 

 

 

 

 

General

December 31, 2016

 

Valuation Technique

 

Unobservable Input

 

Range

Nonrecurring measurements:

 

 

 

 

 

 

Impaired loans

 

Discounted appraisals

 

Collateral discounts and Estimated costs to sell

 

0 – 25%

 

 

Discounted cash flows

 

Discount rates

 

4%-8.75%

OREO

 

Discounted appraisals

 

Collateral discounts and Estimated costs to sell

 

0 – 10%

 

 

 

 

 

 

General

December 31, 2015

 

Valuation Technique

 

Unobservable Input

 

Range

Nonrecurring measurements:

 

 

 

 

 

 

Impaired loans

 

Discounted appraisals

 

Collateral discounts and Estimated costs to sell

 

0 – 25%

 

 

Discounted cash flows

 

Discount rates

 

4%-8.75%

OREO

 

Discounted appraisals

 

Collateral discounts and Estimated costs to sell

 

0 – 10%