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Fair Value of Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 and December 31, 2016 are reflected below.

		(In Thousands)
		March 31, 2017
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and Cash Equivalents		$	39,894			$	39,894			$	39,894			$	—			$	—
Interest-bearing time deposits			1,845				1,845				—				1,845				—
Securities - available-for-sale			206,388				206,388				19,735				185,239				1,414
Other Securities			3,717				3,717				—				—				3,717
Loans held for sale			1,067				1,067				—				—				1,067
Loans, net			764,356				765,974				—				—				765,974
Interest receivable			4,192				4,192				—				—				4,192
Financial Liabilities:
Interest bearing Deposits		$	528,594			$	528,664			$	—			$	—			$	528,664
Non-interest bearing Deposits			178,153				178,153				—				178,153				—
Time Deposits			187,944				187,868				—				—				187,868
Total Deposits		$	894,691			$	894,685			$	—			$	178,153			$	716,532
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase		$	27,961			$	27,961			$	—			$	—			$	27,961
Federal Home Loan Bank advances			10,000				10,041				—				—				10,041
Interest payable			241				241				—				—				241

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		(In Thousands)
		December 31, 2016
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and Cash Equivalents		$	28,322			$	28,322			$	28,322			$	—			$	—
Interest-bearing time deposits			1,915				1,918				—				1,918				—
Securities - available-for-sale			218,527				218,527				24,775				192,334				1,418
Other Securities			3,717				3,717				—				—				3,717
Loans held for sale			2,055				2,055				—				—				2,055
Loans, net			751,310				753,357				—				—				753,357
Interest receivable			3,880				3,880				—				—				3,880
Financial Liabilities:
Interest bearing Deposits		$	456,983			$	456,983			$	—			$	—			$	456,983
Non-interest bearing Deposits			186,390				186,390				—				186,390				—
Time Deposits			198,830				199,658				—				—				199,658
Total Deposits		$	842,203			$	843,031			$	—			$	186,390			$	656,641
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase		$	70,324			$	70,324			$	—			$	—			$	70,324
Federal Home Loan Bank advances			10,000				10,041				—				—				10,041
Interest payable			256				256				—				—				256

Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, 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
March 31, 2017		Assets (Level 1)				(Level 2)				(Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	19,735			$	—			$	—
U.S. Government agencies			—				82,640				—
Mortgage-backed securities			—				46,043				—
State and local governments			—				56,556				1,414
Total Securities Available-for-Sale		$	19,735			$	185,239			$	1,414
		Quoted Prices in				Significant				Significant
		Active Markets				Observable				Observable
		for Identical				Inputs				Inputs
December 31, 2016		Assets (Level 1)				(Level 2)				(Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	24,775			$	—			$	—
U.S. Government agencies			—				82,474				—
Mortgage-backed securities			—				48,461				—
State and local governments			—				61,399				1,418
Total Securities Available-for-Sale		$	24,775			$	192,334			$	1,418

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 March 31, 2017 and March 31, 2016.

		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments Tax-Exempt				State and Local Governments Taxable				State and Local Governments Total
Balance at January 1, 2017		$	—			$	1,418			$	1,418
Change in Market Value			—				(4	)			(4	)
Payments & Maturities			—				—				—
Balance at March 31, 2017		$	—			$	1,414			$	1,414
		(In Thousands)
		Fair Value Measurements Using Significant
		Unobservable Inputs (Level 3)
		State and Local Governments Tax-Exempt				State and Local Governments Taxable				State and Local Governments Total
Balance at January 1, 2016		$	5,904			$	1,448			$	7,352
Change in Market Value			—				33				33
Payments & Maturities			(270	)			—				(270	)
Balance at March 31, 2016		$	5,634			$	1,481			$	7,115

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 March 31, 2017				Valuation Technique		Unobservable Inputs		Range (Weighted Average)
State and local government		$	1,414			Discounted Cash Flow		Credit strength of underlying project or entity / Discount rate		0-5% (3.92%)
Collateral dependent Impaired Loans			577			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		0-50% (16.95%)
Other real estate owned - residential			144			Appraisals		Discount to reflect current market		0-20% (0.0%)
		Fair Value at December 31, 2016				Valuation Technique		Unobservable Inputs		Range (Weighted Average)
State and local government		$	1,418			Discounted Cash Flow		Credit strength of underlying project or entity / Discount rate		0-5% (3.92%)
Collateral dependent Impaired Loans			576			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		0-50% (18.92%)
Other real estate owned - residential			144			Appraisals		Discount to reflect current market		0-20% (0.51%)

Impaired Loans and Other Real Estate

The following table presents impaired loans and other real estate owned as recorded at fair value on March 31, 2017 and December 31, 2016:

		Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2017
(In Thousands)		Balance at March 31, 2017				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent impaired loans		$	577			$	—			$	—			$	577
Other real estate owned - residential		$	144			$	—			$	—			$	144
Total change in fair value														$	721
		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2016
(In Thousands)		Balance at December 31, 2016				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent impaired loans		$	576			$	—			$	—			$	576
Other real estate owned - residential		$	144			$	—			$	—			$	144
Total change in fair value														$	720

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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.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-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.

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