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Fair Value of Instruments (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2017 and December 31, 2016 are reflected below.

		(In Thousands)
		September 30, 2017
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and Cash Equivalents		$	49,104			$	49,104			$	49,104			$	—			$	—
Interest-bearing time deposits			2,541				2,541				—				2,541				—
Securities - available-for-sale			192,811				192,811				15,676				175,693				1,442
Other Securities			3,717				3,717				—				—				3,717
Loans held for sale			2,147				2,147				—				—				2,147
Loans, net			788,335				790,893				—				—				790,893
Interest receivable			5,106				5,106				—				—				5,106
Financial Liabilities:
Interest bearing Deposits		$	519,822			$	519,865			$	—			$	—			$	519,865
Non-interest bearing Deposits			189,963				189,963				—				189,963				—
Time Deposits			193,581				194,342				—				—				194,342
Total Deposits		$	903,366			$	904,170			$	—			$	189,963			$	714,207
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase		$	35,550			$	35,550			$	—			$	—			$	35,550
Federal Home Loan Bank advances			10,000				10,041				—				—				10,041
Interest payable			285				285				—				—				285

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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 September 30, 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
September 30, 2017		Assets (Level 1)				(Level 2)				(Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	15,676			$	—			$	—
U.S. Government agencies			—				78,160				—
Mortgage-backed securities			—				41,990				—
State and local governments			—				55,543				1,442
Total Securities Available-for-Sale		$	15,676			$	175,693			$	1,442
		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 September 30, 2017 and September 30, 2016.

		(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, 2017		$	—			$	1,418			$	1,418
Change in Market Value			—				24				24
Payments & Maturities			—				—				—
Balance at September 30, 2017		$	—			$	1,442			$	1,442
		(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

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, 2017

Valuation Technique

Unobservable Inputs

(Weighted Average)

(In Thousands)

State and local government

$

1,442

Discounted Cash Flow

Credit strength of underlying project or

0-5%(3.59%)

entity / Discount rate

Collateral dependent Impaired Loans

562

Collateral based measurements

Discount to reflect current market

0-50%(18.00%)

conditions and ultimate collectability

Other real estate owned - residential

—

Appraisals

Discount to reflect current market

0-20%(0.0%)

Other real estate owned - commercial

266

Appraisals

Discount to reflect current market

0-20%(5.15%)

Range

Fair Value at

(Weighted

December 31, 2016

Valuation Technique

Unobservable Inputs

Average)

(In Thousands)

State and local government

$

1,418

Discounted Cash Flow

Credit strength of underlying project or

0-5%(3.92%)

entity / Discount rate

Collateral dependent Impaired Loans

576

Collateral based measurements

Discount to reflect current market

0-50%(18.92%)

conditions and ultimate collectability

Other real estate owned - residential

144

Appraisals

Discount to reflect current market

0-20%(0.51%)

Other real estate owned - commercial

—

Appraisals

Discount to reflect current market

0-20%(0.0%)

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, 2017 and December 31, 2016:

		Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2017
						(In Thousands)
						Quoted Prices in Active
						Markets for				Significant				Significant
		Balance at				Identical				Observable Inputs				Unobservable Inputs
		September 30, 2017				Assets (Level 1)				(Level 2)				(Level 3)
Collateral dependent impaired loans		$	562			$	—			$	—			$	562
Other real estate owned - residential			—				—				—				—
Other real estate owned - commercial			266				—				—				266
Total fair value														$	828
		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2016
						(In Thousands)
						Quoted Prices in Active
						Markets for				Significant				Significant
		Balance at				Identical				Observable Inputs				Unobservable Inputs
		December 31, 2016				Assets (Level 1)				(Level 2)				(Level 3)
Collateral dependent impaired loans		$	576			$	—			$	—			$	576
Other real estate owned - residential			144				—				—				144
Other real estate owned - commercial			—				—				—				—
Total fair value														$	720

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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