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Financial Instruments

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Financial Instruments

NOTE 5 – FINANCIAL INSTRUMENTS

Financial instruments as of the dates indicated were as follows:

(Dollars in thousands)		Carrying Amount				Estimated Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
June 30, 2015
Assets:
Cash and due from banks		$	15,391			$	15,391			$	15,391			$	—			$	—
Securities available for sale			150,974				150,974				1,178				1,178				12,046
Federal Home Loan Bank and Federal
Reserve Bank stock			2,886				2,886				—				2,886				—
Loans held for sale			2,833				2,911				—				—				2,911
Loans, net			331,587				337,769				—				—				337,769

Liabilities:
Noninterest-bearing deposits			114,604				114,604				—				114,604				—
Interest-bearing deposits			308,184				308,407				—				308,407				—
Repurchase agreements			21,040				21,040				—				21,040				—
Federal Home Loan Bank advances			31,873				31,908				—				31,908				—

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 assets and liabilities except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 6. The estimated fair value for loans is based on the rates charged at June 30, 2015 and December 31, 2014 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 values for time deposits and Federal Home Loan Bank (“FHLB”) advances are based on the rates paid at June 30, 2015 and December 31, 2014 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.