XML 45 R26.htm IDEA: XBRL DOCUMENT

Financial Instruments

12 Months Ended

Dec. 31, 2016

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
(Dollars in thousands)		Carrying				Estimated				Assets				Inputs				Inputs
		Amount				Fair Value				(Level 1)				(Level 2)				(Level 3)
December 31, 2016
Assets
Cash and due from banks		$	14,809			$	14,809			$	14,809			$	—			$	—
Securities available for sale			174,388				174,388				1,383				157,902				15,103
Federal Home Loan Bank and Federal Reserve Bank stock			3,567				3,567				—				3,567				—
Loans held for sale			1,974				2,044				—				2,044				—
Loans, net			364,723				365,780				—				—				365,780

Liabilities
Noninterest-bearing deposits			127,611				127,611				—				127,611				—
Interest-bearing deposits			384,775				383,879				—				383,879				—
Repurchase agreements			7,913				7,913				—				7,913				—
Federal Home Loan Bank advances			12,301				12,323				—				12,323				—

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				—

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, 2016, 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.