Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Estimated Fair Values and Related Carrying or Notional Amounts

The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of December 31, 2013 and 2012, are reflected below.


	(In Thousands)
	December 2013										December 2012
	Carrying		Fair								Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3		Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and Cash Equivalents	$	19,263	$	19,263	$	19,263	$	—	$	—	$	44,092	$	44,092	$	44,092	$	—	$	—
Securities - available for sale		324,509		324,509		25,272		288,891		10,346		355,905		355,905		10,568		328,929		16,408
Other Securities		4,216		4,216		—		—		4,216		4,365		4,365		—		—		4,365
Loans, net		570,919		579,992		—		—		579,992		496,178		501,260		—		—		501,260
Interest receivable		3,694		3,694		—		—		3,694		3,603		3,603		—		—		3,603


Total Assets	$	922,601	$	931,674	$	44,535	$	288,891	$	598,248	$	904,143	$	909,225	$	54,660	$	328,929	$	525,636


Financial Liabilities:
Interest bearing Deposits	$	429,652	$	429,750	$	—	$	—	$	429,750	$	389,779	$	390,066	$	—	$	—	$	390,066
Non-interest bearing Deposits		110,452		111,239		—		111,239		—		103,966		104,529		—		104,529		—
Time Deposits		236,360		236,027		—		—		236,027		269,507		272,591		—		—		272,591

Total Deposits	$	776,464	$	777,016	$	—	$	111,239	$	665,777	$	763,252	$	767,186	$	—	$	104,529	$	662,657
Short-term debt		69,756		69,756		—		—		69,756		51,312		51,312		—		—		51,312
Federal Home Loan Bank advances		4,500		4,570		—		—		4,570		11,600		11,012		—		—		11,012
Interest payable		223		223		—		—		223		288		288		—		—		288
Dividends payable		967		967		—		967		—		931		931		—		931		—

Total Liabilities	$	851,910	$	852,532	$	—	$	112,206	$	740,326	$	827,383	$	830,729	$	—	$	105,460	$	725,269

Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012 segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value:


($ in Thousands)	Quoted Prices in Active		Significant		Significant
	Active Markets		Observable		Observable
	for Identical		Inputs		Inputs
December 31, 2013	Assets (Level 1)		(Level 2)		(Level 3)
Assets-(Securities Available for Sale)
U.S. Treasury	$	25,272	$	—	$	—
U.S. Government agency		—		172,972		—
Mortgage-backed securities		—		44,792		—
State and local governments		—		71,127		10,346


Total Securities Available for Sale	$	25,272	$	288,891	$	10,346


($ in Thousands)	Quoted Prices in Active		Significant		Significant
	Active Markets		Observable		Observable
	for Identical		Inputs		Inputs
December 31, 2012	Assets (Level 1)		(Level 2)		(Level 3)
Assets-(Securities Available for Sale)
U.S. Treasury	$	10,568	$	—	$	—
U.S. Government agency		—		220,200		—
Mortgage-backed securities		—		53,006		—
State and local governments		—		55,723		16,408

Total Securities Available for Sale	$	10,568	$	328,929	$	16,408

Impaired Loans and Other Real Estate

The following table presents impaired loans and other real estate owned as recorded at fair value:


	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2013
	Quoted Prices in Active								Change in
($ in Thousands)			Markets for		Significant		Significant		fair value for
	Balance at		Identical		Observable Inputs		Unobservable Inputs		twelve-month period
	December 31, 2013		Assets (Level 1)		(Level 2)		(Level 3)		ended Dec. 31, 2013
Impaired loans	$	1,924	$	—	$	—	$	1,924	$	(525	)
Other real estate owned - residential mortgages		964		—		—		964		—
Other real estate owned - commercial		1,127		—		—		1,127		(64	)

Total change in fair value									$	(589	)


	Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2012
			Quoted Prices in Active						Change in
($ in Thousands)			Markets for		Significant		Significant		fair value for
	Balance at		Identical		Observable Inputs		Unobservable Inputs		twelve-month period
	December 31, 2012		Assets (Level 1)		(Level 2)		(Level 3)		ended Dec. 31, 2012
Impaired loans	$	3,726	$	—	$	—	$	3,726	$	(820	)
Other real estate owned - residential mortgages		783		—		—		783		(62	)
Other real estate owned - commercial		1,526		—		—		1,526		(214	)

Total change in fair value									$	(1,096	)