Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value of Assets and Liabilities

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

	September 30, 2016
	Fair Value Measurements Using						Assets/Liabilities at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	14,052	$	—	$	14,052
Mortgage-backed securities		—		70,360		—		70,360
Obligations of states and political subdivisions		—		120,820		—		120,820
Total securities available for sale		—		205,232		—		205,232
Loans held for sale		—		66,689		—		66,689
Derivative asset - IRLC		—		1,251		—		1,251
Derivative asset - interest rate swaps on loans		—		815		—		815
Total assets	$	—	$	273,987	$	—	$	273,987
Liabilities:
Derivative liability - cash flow hedges	$	—	$	603	$	—	$	603
Derivative liability - interest rate swaps on loans		—		815		—		815
Total liabilities	$	—	$	1,418	$	—	$	1,418

	December 31, 2015
	Fair Value Measurements Using						Assets/Liabilities 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

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

	September 30, 2016
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	1,479	$	1,479
Other real estate owned, net		—		—		499		499
Total	$	—	$	—	$	1,978	$	1,978

	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

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 September 30, 2016
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range of Inputs
Impaired loans, net	$	1,479	Appraisals	Discount to reflect current market conditions and estimated selling costs	0% - 50%
Other real estate owned, net		499	Appraisals	Discount to reflect current market conditions and estimated selling costs	0% - 67%
Total	$	1,978

Schedule of carrying amounts and estimated fair values of financial instruments

	Carrying		Fair Value Measurements at September 30, 2016 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	88,995	$	88,995	$	—	$	—	$	88,995
Securities available for sale		205,232		—		205,232		—		205,232
Loans, net		935,598		—		—		942,484		942,484
Loans held for sale		66,689		—		66,689		—		66,689
Derivative asset - IRLC		1,251		—		1,251		—		1,251
Derivative asset - interest rate swaps on loans		815		—		815		—		815
Bank-owned life insurance		14,909		—		14,909		—		14,909
Accrued interest receivable		6,551		6,551		—		—		6,551
Financial liabilities:
Demand deposits	$	743,234	$	743,234	$	—	$	—	$	743,234
Time deposits		345,894		—		348,301		—		348,301
Borrowings		167,204		—		160,813		—		160,813
Derivative liability - cash flow hedges		603		—		603		—		603
Derivative liability - interest rate swaps on loans		815		—		815		—		815
Accrued interest payable		672		672		—		—		672

	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