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Financial Instruments

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Financial Instruments

NOTE 5 – 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)
March 31, 2017
Assets:
Cash and due from banks		$	11,315			$	11,315			$	11,315			$	—			$	—
Securities available for sale			180,314				180,314				1,829				163,277				15,208
Federal Home Loan Bank and Federal Reserve Bank stock			3,567				3,567				—				3,567				—
Loans held for sale			2,308				2,390				—				—				2,390
Loans to other financial institutions			3,507				3,507												3,507
Loans, net			368,966				369,432				—				—				369,432

Liabilities:
Noninterest-bearing deposits			127,945				127,945				—				127,945				—
Interest-bearing deposits			380,422				379,451				—				379,451				—
Repurchase agreements			4,606				4,606				—				4,606				—
Federal funds purchased			3,873				3,873				—				3,873				—
Federal Home Loan Bank advances			24,293				24,306				—				24,306				—

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				—

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 March 31, 2017 and December 31, 2016 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 March 31, 2017 and December 31, 2016 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.