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Fair Value of Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

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 September 30, 2016 and December 31, 2015 are reflected below.

		(In Thousands)
		September 30, 2016
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and Cash Equivalents		$	31,498			$	31,498			$	31,498			$	—			$	—
Interest-bearing time deposits			1,915				1,915				—				1,915				—
Securities—available-for-sale			224,473				224,473				31,059				191,873				1,541
Other Securities			3,717				3,717				—				—				3,717
Loans, net			732,070				735,456				—				—				735,456
Interest receivable			4,430				4,430				—				—				4,430
Financial Liabilities:
Interest bearing Deposits		$	449,879			$	449,879			$	—			$	—			$	449,879
Non-interest bearing Deposits			176,180				176,180				—				176,180				—
Time Deposits			212,042				212,254				—				—				212,254
Total Deposits		$	838,101			$	838,313			$	—			$	176,180			$	662,133
Fed Funds purchased and Securities sold under agreements to repurchase		$	59,487			$	59,487			$	—			$	—			$	59,487
Federal Home Loan Bank advances			10,000				10,041				—				—				10,041
Interest payable			228				228				—				—				228

		(In Thousands)
		December 31, 2015
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and Cash Equivalents		$	22,018			$	22,018			$	22,018			$	—			$	—
Securities—available-for-sale			235,115				235,115				38,505				189,258				7,352
Other Securities			3,717				3,717				—				—				3,717
Loans, net			679,821				683,332				—				—				683,332
Interest receivable			3,589				3,589				—				—				3,589
Financial Liabilities:
Interest bearing Deposits		$	415,942			$	415,942			$	—			$	—			$	415,942
Non-interest bearing Deposits			171,112				171,112				—				171,112				—
Time Deposits			184,285				184,308				—				—				184,308
Total Deposits		$	771,339			$	771,362			$	—			$	171,112			$	600,250
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase		$	78,815			$	78,815			$	—			$	—			$	78,815
Federal Home Loan Bank advances			10,000				9,986				—				—				9,986
Interest payable			185				185				—				—				185

Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015, segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured at Fair Value on a Recurring Basis (In Thousands)
		Quoted Prices in				Significant				Significant
		Active Markets				Observable				Observable
		for Identical				Inputs				Inputs
September 30, 2016		Assets (Level 1)				(Level 2)				(Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	31,059			$	—			$	—
U.S. Government agencies			—				99,654				—
Mortgage-backed securities			—				30,390				—
State and local governments			—				61,829				1,541
Total Securities Available-for-Sale		$	31,059			$	191,873			$	1,541

		Quoted Prices in				Significant				Significant
		Active Markets				Observable				Observable
		for Identical				Inputs				Inputs
December 31, 2015		Assets (Level 1)				(Level 2)				(Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	38,505			$	—			$	—
U.S. Government agencies			—				98,220				—
Mortgage-backed securities			—				26,324				—
State and local governments			—				64,714				7,352
Total Securities Available-for-Sale		$	38,505			$	189,258			$	7,352

Changes in the Level 3 Fair-Value Category of Which Unobservable Inputs

The following table represents the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of September 30, 2016 and September 30, 2015.

		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local				State and Local				State and Local
		Governments				Governments				Governments
		Tax-Exempt				Taxable				Total
Balance at January 1, 2016		$	5,904			$	1,448			$	7,352
Change in Market Value			—				93				93
Payments & Maturities			(5,904	)			—				(5,904	)
Balance at September 30, 2016		$	—			$	1,541			$	1,541
		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local				State and Local				State and Local
		Governments				Governments				Governments
		Tax-Exempt				Taxable				Total
Balance at January 1, 2015		$	6,638			$	1,293			$	7,931
Change in Market Value			(256	)			130				(126	)
Payments & Maturities			(200	)			—				(200	)
Balance at September 30, 2015		$	6,182			$	1,423			$	7,605

Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

Fair Value at

Range

September 30, 2016

Valuation Technique

Unobservable Inputs

(Weighted Average)

State and local government

$

1,541

Discounted Cash Flow

Credit strength of underlying project or

0-5

%

entity / Discount rate

Collateral dependent Impaired loans

766

Collateral based measurements

Discount to reflect current market

0-50

%

conditions and ultimate collectability

Other real estate owned - residential

165

Appraisals

Discount to reflect current market

0-20

%

Other real estate owned - commercial

—

Appraisals

Discount to reflect current market

0-20

%

Range

Range

Fair Value at December 31, 2015

Valuation Technique

Unobservable Inputs

(Weighted Average)

State and local government

$

7,352

Discounted Cash Flow

Credit strength of underlying project or

0-5

%

entity / Discount rate

Collateral dependent Impaired loans

549

Collateral based measurements

Discount to reflect current market

0-50

%

conditions and ultimate collectability

Other real estate owned - residential

—

Appraisals

Discount to reflect current market

0-20

%

Other real estate owned - commercial

216

Appraisals

Discount to reflect current market

0-20

%

Impaired Loans and Other Real Estate

The following table presents impaired loans and other real estate owned as recorded at fair value on September 30, 2016 and December 31, 2015:

		Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2016
						Quoted Prices in Active
(In Thousands)		Balance at				Markets for Identical				Significant Observable Inputs				Significant Unobservable Inputs
		September 30, 2016				Assets (Level 1)				(Level 2)				(Level 3)
Collateral dependent impaired loans		$	766			$	—			$	—			$	766
Other real estate owned residential mortgages		$	165			$	—			$	—			$	165
		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2015
						Quoted Prices in Active
(In Thousands)						Markets for				Significant				Significant
		Balance at				Identical				Observable Inputs				Unobservable Inputs
		December 31, 2015				Assets (Level 1)				(Level 2)				(Level 3)
Collateral dependent impaired loans		$	549			$	—			$	—			$	549
Other real estate owned commercial		$	216			$	—			$	—			$	216

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Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, used to measure similar assets in prior periods (non-recurring basis) by class of asset or liability.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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