Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value of Assets and Liabilities

Schedule of financial assets measured at fair value on a recurring basis

	December 31, 2015
	Fair Value Measurements Using						Assets at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	18,501	$	—	$	18,501
Mortgage-backed securities		—		77,027		—		77,027
Obligations of states and political subdivisions		—		123,948		—		123,948
Total securities available for sale		—		219,476		—		219,476
Loans held for sale		—		44,000		—		44,000
Derivative asset - IRLC		—		744		—		744
Total assets	$	—	$	264,220	$	—	$	264,220
Liabilities:
Derivative liability - cash flow hedges	$	—	$	175	$	—	$	175

	December 31, 2014
	Fair Value Measurements Using						Assets at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	22,934	$	—	$	22,934
Mortgage-backed securities		—		67,619		—		67,619
Obligations of states and political subdivisions		—		131,344		—		131,344
Total securities available for sale		—		221,897		—		221,897
Loans held for sale		—		28,279		—		28,279
Derivative asset - IRLC		—		448		—		448
Derivative asset - cash flow hedges		—		40		—		40
Total assets	$	—	$	250,664	$	—	$	250,664
Liabilities:
Derivative liability - cash flow hedges	$	—	$	143	$	—	$	143

Schedule of financial assets measured at fair value on a nonrecurring basis

	December 31, 2015
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	1,953	$	1,953
Other real estate owned, net		—		—		942		942
Total	$	—	$	—	$	2,895	$	2,895

	December 31, 2014
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	1,224	$	1,224
Other real estate owned, net		—		—		786		786
Total	$	—	$	—	$	2,010	$	2,010

Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a non-recurring basis

	Fair Value Measurements at December 31, 2015
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range of Inputs
Impaired loans, net	$	1,953	Appraisals	Discount to reflect current market conditions and estimated selling costs	10% - 60%
Other real estate owned, net		942	Appraisals	Discount to reflect current market conditions and estimated selling costs	0% - 65%
Total	$	2,895

Schedule of carrying amounts and estimated fair values by balance sheet grouping

	Carrying		Fair Value Measurements at December 31, 2015 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	152,943	$	152,943	$	—	$	—	$	152,943
Securities available for sale		219,476		—		219,476		—		219,476
Loans, net		865,892		—		—		875,341		875,341
Loans held for sale		44,000		—		44,000		—		44,000
Derivative asset - IRLC		744		—		744		—		744
Bank-owned life insurance		14,988		—		14,988		—		14,988
Accrued interest receivable		6,829		6,829		—		—		6,829
Financial liabilities:
Demand deposits	$	733,901	$	733,901	$	—	$	—	$	733,901
Time deposits		339,732		—		342,275		—		342,275
Borrowings		177,261		—		174,032		—		174,032
Derivative liability - cash flow hedges		175		—		175		—		175
Accrued interest payable		698		698		—		—		698

	Carrying		Fair Value Measurements at December 31, 2014 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	167,616	$	167,616	$	—	$	—	$	167,616
Securities available for sale		221,897		—		221,897		—		221,897
Loans, net		800,198		—		—		813,010		813,010
Loans held for sale		28,279		—		28,279		—		28,279
Derivative asset - IRLC		448		—		448		—		448
Derivative asset - cash flow hedges		40		—		40		—		40
Bank-owned life insurance		14,484		—		14,484		—		14,484
Accrued interest receivable		6,421		6,421		—		—		6,421
Financial liabilities:
Demand deposits	$	659,594	$	659,594	$	—	$	—	$	659,594
Time deposits		366,507		—		369,538		—		369,538
Borrowings		167,027		—		160,052		—		160,052
Derivative liability - cash flow hedges		143		—		143		—		143
Accrued interest payable		740		740		—		—		740