Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2014

Assets and liabilities measured on recurring basis measured at fair value

The following table presents the balances of assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2014 and 2013.



	At December 31, 2014
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	151,855,000	$	—	$	151,855,000
State and political subdivisions	—		30,855,000		—		30,855,000
Other equity securities	—		2,551,000		—		2,551,000
Total assets	$	—	$	185,261,000	$	—	$	185,261,000



	At December 31, 2013
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	177,729,000	$	—	$	177,729,000
State and political subdivisions	—		126,315,000		—		126,315,000
Other equity securities	—		1,780,000		—		1,780,000
Total assets	$	—	$	305,824,000	$	—	$	305,824,000

Assets and liabilities measured on non-recurring basis measured at fair value

The following table presents assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance for losses of $654,000 and $330,000 at December 2014 and 2013, respectively. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of $1,074,000 and $1,309,000 at December 31, 2014 and 2013, respectively.



	At December 31, 2014
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	3,785,000	$	—	$	3,785,000
Impaired loans	—		1,909,000		—		1,909,000
Total Assets	$	—	$	5,694,000	$	—	$	5,694,000



	At December 31, 2013
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	4,807,000	$	—	$	4,807,000
Impaired loans	—		1,116,000		—		1,116,000
Total Assets	$	—	$	5,923,000	$	—	$	5,923,000

Estimated fair value of financial instruments

The carrying amounts and estimated fair values for financial instruments as of December 31, 2014 were as follows:



	Carrying		Estimated
As of December 31, 2014	value		fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	13,057,000	$	13,057,000	$	13,057,000	$	—	$	—
Interest bearing deposits in other banks	3,559,000		3,559,000		3,559,000		—		—
Securities available for sale	185,261,000		185,261,000		—		185,261,000		—
Securities to be held to maturity	275,919,000		279,704,000		—		279,704,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	238,104,000		236,368,000		—		431,000		235,937,000
Construction	29,951,000		29,733,000		—		—		29,733,000
Other	102,738,000		102,858,000		—		—		102,858,000
Municipal	20,406,000		20,833,000		—		—		20,833,000
Residential
Term	382,620,000		389,200,000		—		990,000		388,210,000
Construction	12,136,000		12,123,000		—		—		12,123,000
Home equity line of credit	102,258,000		101,733,000		—		488,000		101,245,000
Consumer	19,007,000		19,207,000		—		—		19,207,000
Total loans	907,220,000		912,055,000		—		1,909,000		910,146,000
Mortgage servicing rights	1,086,000		2,088,000		—		2,088,000		—
Accrued interest receivable	4,748,000		4,748,000		—		4,748,000		—
Financial liabilities
Demand deposits	$	113,133,000	$	109,973,000	$	—	$	109,973,000	$	—
NOW deposits	199,977,000		186,490,000		—		186,490,000		—
Money market deposits	98,607,000		83,837,000		—		83,837,000		—
Savings deposits	165,601,000		146,936,000		—		146,936,000		—
Local certificates of deposit	205,072,000		205,360,000		—		205,360,000		—
National certificates of deposit	242,429,000		242,824,000		—		242,824,000		—
Total deposits	1,024,819,000		975,420,000		—		975,420,000		—
Repurchase agreements	74,725,000		70,783,000		—		70,783,000		—
Federal Home Loan Bank advances	205,191,000		208,259,000		—		208,259,000		—
Total borrowed funds	279,916,000		279,042,000		—		279,042,000		—
Accrued interest payable	521,000		521,000		—		521,000		—

The carrying amounts and estimated fair values for financial instruments as of December 31, 2013 were as follows:



	Carrying		Estimated
As of December 31, 2013	value		fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	16,570,000	$	16,570,000	$	16,570,000	$	—	$	—
Interest bearing deposits in other banks	2,562,000		2,562,000		2,562,000		—		—
Securities available for sale	305,824,000		305,824,000		—		305,824,000		—
Securities to be held to maturity	169,277,000		158,336,000		—		158,336,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	83,000		83,000		—		83,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	240,555,000		239,973,000		—		109,000		239,864,000
Construction	19,709,000		19,661,000		—		—		19,661,000
Other	92,625,000		92,855,000		—		229,000		92,626,000
Municipal	19,099,000		19,358,000		—		—		19,358,000
Residential
Term	375,932,000		381,918,000		—		778,000		381,140,000
Construction	11,778,000		11,794,000		—		—		11,794,000
Home equity line of credit	90,759,000		90,542,000		—		—		90,542,000
Consumer	14,396,000		14,438,000		—		—		14,438,000
Total loans	864,853,000		870,539,000		—		1,116,000		869,423,000
Mortgage servicing rights	1,158,000		1,948,000		—		1,948,000		—
Accrued interest receivable	5,038,000		5,038,000		—		5,038,000		—
Financial liabilities
Demand deposits	$	106,125,000	$	96,175,000	$	—	$	96,175,000	$	—
NOW deposits	151,322,000		129,815,000		—		129,815,000		—
Money market deposits	86,730,000		67,968,000		—		67,968,000		—
Savings deposits	149,103,000		122,891,000		—		122,891,000		—
Local certificates of deposit	226,658,000		228,767,000		—		228,767,000		—
National certificates of deposit	304,461,000		306,346,000		—		306,346,000		—
Total deposits	1,024,399,000		951,962,000		—		951,962,000		—
Repurchase agreements	94,477,000		94,477,000		—		94,477,000		—
Federal Home Loan Bank advances	184,648,000		189,644,000		—		189,644,000		—
Total borrowed funds	279,125,000		284,121,000		—		284,121,000		—
Accrued interest payable	599,000		599,000		—		599,000		—

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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