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Financial Instruments

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Financial Instruments

Note 17 – Financial Instruments

Financial instruments as of the dates indicated were as follows:

											Quoted Prices
											In Active				Significant
											Markets for				Other				Significant
											Identical				Observable				Unobservable
			Carrying				Estimated				Assets				Inputs				Inputs
(Dollars in thousands)			Amount				Fair Value				(Level 1)				(Level 2)				(Level 3)
December 31, 2015
Assets
Cash and due from banks		$	11,187			$	11,187			$	11,187			$	—			$	—
Securities available for sale			160,136				160,136				953				147,384				11,799
Federal Home Loan Bank and Federal Reserve Bank stock			3,187				3,187				—				3,187				—
Loans held for sale			4,957				5,109				—				5,109				—
Loans, net			345,110				349,875				—				—				349,875

Liabilities
Noninterest-bearing deposits			122,937				122,937				—				122,937				—
Interest-bearing deposits			351,759				353,113				—				353,113				—
Repurchase agreements			9,460				9,460				—				9,460				—
Federal Home Loan Bank advances			11,332				12,028				—				12,028				—

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 financial instruments except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 18. The estimated fair value for loans is based on the rates charged at December 31 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 value of deposits is based on comparing the average rate paid on deposits compared to the three month Libor rate which is assumed to be the replacement value of these deposits. At December 31, 2015, all average rates were lower than the three month Libor rate causing fair values to be higher than carrying amounts. The estimated fair values for time deposits and FHLB advances are based on the rates paid at December 31 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.