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FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2017
Investments, All Other Investments [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) 
June 30, 2017                         
Assets:                         
Cash and due from banks  $17,050   $17,050   $17,050   $—   $— 
Securities available for sale   180,448    180,448    1,852    163,738    14,858 
                           
Federal Home Loan Bank and Federal Reserve Bank stock   3,567    3,567    —    3,567    — 
Loans held for sale   1,990    2,051    —    —    2,051 
Loans to other financial institutions   4,162    4,162              4,162 
Loans, net   375,350    382,827    —    —    382,827 
                          
Liabilities:                         
Noninterest-bearing deposits   133,956    133,956    —    133,956    — 
Interest-bearing deposits   390,388    389,473    —    389,473    — 
Repurchase agreements   2,302    2,302    —    2,302    — 
Federal Home Loan Bank advances   24,284    24,308    —    24,308    — 
                          
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 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 6. The estimated fair value for loans is based on the rates charged at June 30, 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 June 30, 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.