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Fair Value of Instruments (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018 and December 31, 2017 are reflected below.

		(In Thousands)
		March 31, 2018
		Carrying Amount				Fair Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and Cash Equivalents		$	39,908			$	39,908			$	39,908			$	—			$	—
Interest-bearing time deposits			4,019				4,019				—				4,019				—
Securities - available-for-sale			192,859				192,859				20,839				170,597				1,423
Other Securities			3,717				3,717				—				—				3,717
Loans held for sale			2,769				2,769				—				—				2,769
Loans, net			827,937				813,272				—				—				813,272
Interest receivable			3,782				3,782				—				—				3,782
Financial Liabilities:
Interest bearing Deposits		$	573,328			$	574,512			$	—			$	—			$	574,512
Non-interest bearing Deposits			193,665				193,665				—				193,665				—
Time Deposits			186,345				186,392				—				—				186,392
Total Deposits			953,338				954,569				—				193,665				760,904
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase			23,307				23,307				—				—				23,307
Federal Home Loan Bank advances			5,000				4,882				—				—				4,882
Interest payable			302				302				—				—				302

[Remainder of this page intentionally left blank]

		(In Thousands)
		December 31, 2017
		Carrying Amount				Fair Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and Cash Equivalents		$	34,467			$	34,467			$	34,467			$	—			$	—
Interest-bearing time deposits			4,018				4,009				—				4,009				—
Securities - available-for-sale			196,398				196,398				20,978				173,992				1,428
Other Securities			3,717				3,717				—				—				3,717
Loans held for sale			1,221				1,221				—				—				1,221
Loans, net			816,156				819,193				—				—				819,193
Interest receivable			4,276				4,276				—				—				4,276
Financial Liabilities:
Interest bearing Deposits		$	532,660			$	532,660			$	—			$	—			$	532,660
Non-interest bearing Deposits			199,114				199,114				—				199,114				—
Time Deposits			187,566				188,335				—				—				188,335
Total Deposits			919,340				920,109				—				199,114				720,995
Federal Funds Purchased and Securities Sold Under Agreement to Repurchase			39,495				39,495				—				—				39,495
Federal Home Loan Bank advances			5,000				5,021				—				—				5,021
Interest payable			318				318				—				—				318

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, 2018 and December 31, 2017, 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)
March 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Observable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	20,839			$	—			$	—
U.S. Government agencies			—				79,493				—
Mortgage-backed securities			—				36,862				—
State and local governments			—				54,242				1,423
Total Securities Available-for-Sale		$	20,839			$	170,597			$	1,423
December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Observable Inputs (Level 3)
Assets - (Securities Available-for-Sale)
U.S. Treasury		$	20,978			$	—			$	—
U.S. Government agencies			—				80,466				—
Mortgage-backed securities			—				39,510				—
State and local governments			—				54,016				1,428
Total Securities Available-for-Sale		$	20,978			$	173,992			$	1,428

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, 2018 and March 31, 2017.

		(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, 2018		$	—			$	1,428			$	1,428
Change in Market Value			—				(5	)			(5	)
Payments & Maturities			—				—				—
Balance at March 31, 2018		$	—			$	1,423			$	1,423
		(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

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:

(In Thousands)

Fair Value at December 31, 2017

Valuation Technique

Unobservable Inputs

Range (Weighted Average)

State and local government

$

1,423

Discounted Cash Flow

Credit strength of underlying project or entity / Discount rate

0-5% (3.69%)

Collateral dependent impaired loans

503

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

0-50% (17.11%)

Other real estate owned - residential

—

Appraisals

Discount to reflect current market

0-20% ( - )

Other real estate owned - commercial

—

Appraisals

Discount to reflect current market

0-20% ( - )

(In Thousands)

Fair Value at December 31, 2017

Valuation Technique

Unobservable Inputs

Range (Weighted Average)

State and local government

$

1,428

Discounted Cash Flow

Credit strength of underlying project or entity / Discount rate

0-5% (3.68%)

Collateral dependent impaired loans

508

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

0-50% (17.28%)

Other real estate owned - residential

22

Appraisals

Discount to reflect current market

0-20% (2.22%)

Other real estate owned - commercial

266

Appraisals

Discount to reflect current market

0-20% (5.15%)

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, 2018 and December 31, 2017:

		Assets Measured at Fair Value on a Nonrecurring Basis at March 31, 2018
		Balance at March 31, 2018				(In Thousands) Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent impaired loans		$	503			$	—			$	—			$	503
Other real estate owned - residential			—				—				—				—
Other real estate owned - commercial			—				—				—				—
		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2017
		Balance at December 31, 2017				(In Thousands) Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent impaired loans		$	508			$	—			$	—			$	508
Other real estate owned - residential			22				—				—				22
Other real estate owned - commercial			266				—				—				266

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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