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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2018 and December 31, 2017 are reflected below.

		(In Thousands)
		June 30, 2018
		Carrying				Fair
		Amount				Value				Level 1				Level 2				Level 3
Financial Assets:
Cash and Cash Equivalents		$	32,564			$	32,564			$	32,564			$	-			$	-
Interest-bearing time deposits			4,019				4,019				-				4,019				-
Securities - available-for-sale			187,036				187,036				20,791				164,835				1,410
Other Securities			3,717				3,717				-				-				3,717
Loans held for sale			913				913				-				-				913
Loans, net			824,226				809,064				-				-				809,064
Interest receivable			4,686				4,686				-				-				4,686
Financial Liabilities:
Interest bearing Deposits		$	549,352			$	550,699			$	-			$	-			$	550,699
Non-interest bearing Deposits			200,067				200,067				-				200,067				-
Time Deposits			181,347				179,959				-				-				179,959
Total Deposits			930,766				930,725				-				200,067				730,658
Federal Funds Purchased and Securities Sold Under    Agreement to Repurchase			23,898				23,898				-				-				23,898
Federal Home Loan Bank advances			5,000				5,001				-				-				5,001
Interest payable			316				316				-				-				316

		(In Thousands)
		December 31, 2017
		Carrying				Fair
		Amount				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 June 30, 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)
June 30, 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		$	20,791			$	-			$	-
U.S. Government agencies			-				76,310				-
Mortgage-backed securities			-				34,836				-
State and local governments			-				53,689				1,410
Total Securities Available-for-Sale		$	20,791			$	164,835			$	1,410

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 June 30, 2018 and June 30, 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			-				(18	)			(18	)
Payments & Maturities			-				-				-
Balance at June 30, 2018		$	-			$	1,410			$	1,410

		(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			-				30				30
Payments & Maturities			-				-				-
Balance at June 30, 2017		$	-			$	1,448			$	1,448

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)								Range
		Fair Value at								(Weighted
		June 30, 2018				Valuation Technique		Unobservable Inputs		Average)
State and local government		$	1,410			Discounted Cash Flow		Credit strength of underlying project or entity / Discount rate		0-5% (3.78% )
Collateral dependent    impaired loans			516			Collateral based measurements		Discount to reflect current market conditions and ultimate collectability		0-50% (20.37%)
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)								Range
		Fair Value at								(Weighted
		December 31, 2017				Valuation Technique		Unobservable Inputs		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 June 30, 2018 and December 31, 2017:

		Assets Measured at Fair Value on a Nonrecurring Basis at June 30, 2018
		(In Thousands)
		Balance at June 30, 2018				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Collateral dependent    impaired loans		$	516			$	-			$	-			$	516
Other real estate    owned - residential			-				-				-				-
Other real estate    owned - commercial			-				-				-				-

		Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2017
		(In Thousands)
		Balance at December 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		$	508			$	-			$	-			$	508
Other real estate    owned - residential			22				-				-				22
Other real estate    owned - commercial			266				-				-				266

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