Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2015

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, 2015 and 2014.



	At December 31, 2015
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	195,110,000	$	—	$	195,110,000
State and political subdivisions	—		24,506,000		—		24,506,000
Other equity securities	—		3,423,000		—		3,423,000
Total assets	$	—	$	223,039,000	$	—	$	223,039,000



	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

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 $162,000 and $654,000 at December 2015 and 2014, 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 $292,000 and $1,074,000 at December 31, 2015 and 2014, respectively.



	At December 31, 2015
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	1,532,000	$	—	$	1,532,000
Impaired loans	—		699,000		—		699,000
Total assets	$	—	$	2,231,000	$	—	$	2,231,000



	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

Estimated fair value of financial instruments

The carrying amounts and estimated fair values for financial instruments as of December 31, 2015 were as follows:



	Carrying		Estimated
As of December 31, 2015	value		fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	14,299,000	$	14,299,000	$	14,299,000	$	—	$	—
Interest-bearing deposits in other banks	4,013,000		4,013,000		4,013,000		—		—
Securities available for sale	223,039,000		223,039,000		—		223,039,000		—
Securities to be held to maturity	240,023,000		243,123,000		—		243,123,000		—
Restricted equity securities	14,257,000		14,257,000		—		14,257,000		—
Loans held for sale	349,000		349,000		—		349,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	265,616,000		262,763,000		—		—		262,763,000
Construction	24,166,000		23,906,000		—		—		23,906,000
Other	126,551,000		126,141,000		—		—		126,141,000
Municipal	19,730,000		20,331,000		—		—		20,331,000
Residential
Term	401,315,000		405,315,000		—		—		405,315,000
Construction	8,421,000		8,379,000		—		—		8,379,000
Home equity line of credit	109,101,000		108,118,000		—		699,000		107,419,000
Consumer	23,822,000		23,754,000		—		—		23,754,000
Total loans	978,722,000		978,707,000		—		699,000		978,008,000
Mortgage servicing rights	1,093,000		1,915,000		—		1,915,000		—
Accrued interest receivable	4,912,000		4,912,000		—		4,912,000		—
Financial liabilities
Demand deposits	$	130,566,000	$	125,651,000	$	—	$	125,651,000	$	—
NOW deposits	242,638,000		224,627,000		—		224,627,000		—
Money market deposits	92,994,000		82,050,000		—		82,050,000		—
Savings deposits	206,009,000		181,010,000		—		181,010,000		—
Local certificates of deposit	201,420,000		201,013,000		—		201,013,000		—
National certificates of deposit	169,562,000		169,617,000		—		169,617,000		—
Total deposits	1,043,189,000		983,968,000		—		983,968,000		—
Repurchase agreements	87,103,000		82,168,000		—		82,168,000		—
Federal Home Loan Bank advances	250,354,000		250,027,000		—		250,027,000		—
Total borrowed funds	337,457,000		332,195,000		—		332,195,000		—
Accrued interest payable	435,000		435,000		—		435,000		—

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 held for sale	—		—		—		—		—
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		—