Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value, Assets Measured on Recurring Basis [Table Text Block]



	Fair Value Measurement Using
	Reporting Date


Description	Total		Level 1		Level 2		Level 3
	(In thousands)

September 30, 2014
Available for Sale:
U.S. Treasury securities	$	963	$	-	$	963	$
U.S. Government agencies		27,355		-		27,355		-
States and political subdivisions		54,299		-		54,299		-
Corporate obligations		6,485		-		6,485		-
Mortgage-backed securities-government
sponsored agencies		69,239		-		69,239		-
Equity securities-financial services		360		360		-		-
Total	$	158,701	$	360	$	158,341	$	-

December 31, 2013
Available for Sale:
U.S. Government agencies	$	33,413	$	-	$	33,413	$	-
States and political subdivisions		59,030		-		59,030		-
Corporate obligations		3,711		-		3,711		-
Mortgage-backed securities-government
sponsored agencies		61,650		-		61,650		-
Equity securities-financial services		328		328		-		-
Total	$	158,132	$	328	$	157,804	$	-

Fair Value, Assets Measured on Nonrecurring Basis [Table Text Block]



			Fair Value Measurement Reporting Date using

(In thousands)

Description	Total		Level 1		Level 2		Level 3
September 30, 2014
Impaired Loans	$	6,852	$	-	$	-	$	6,852
Foreclosed Real Estate Owned		4,962		-		-		4,962


December 31, 2013
Impaired Loans	$	12,556	$	-	$	-	$	12,556
Foreclosed Real Estate Owned		1,009		-		-		1,009

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]



		Quantitative Information about Level 3 Fair Value Measurements
(In thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
September 30, 2014
Impaired loans	$	6,852	Appraisal of collateral(1)	Appraisal adjustments(2)	10% (10%)

Foreclosed real estate owned	$	4,962	Appraisal of collateral(1)	Liquidation Expenses(2)	10% (10%)



	Quantitative Information about Level 3 Fair Value Measurements
(In thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
December 31, 2013
Impaired loans	$	12,556	Appraisal of collateral(1)	Appraisal adjustments(2)	10-15% (10.67%)

Foreclosed real estate owned	$	1,009	Appraisal of collateral(1)	Liquidation Expenses(2)	10% (10%)

(1)

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable, less any associated allowance.

(2)

Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Fair Value, by Balance Sheet Grouping [Table Text Block]



	Fair Value Measurements at September 30, 2014
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	13,263	$	13,263	$	13,263	$	-	$	-
Securities		158,701		158,701		360		158,341		-
Loans receivable, net		495,193		508,966		-		-		508,966
Mortgage servicing rights		267		267		-		-		267
Regulatory Stock		3,210		3,210		3,210		-		-
Bank owned life insurance		18,143		18,143		18,143		-		-
Accrued interest receivable		2,367		2,367		2,367		-		-

Financial liabilities:
Deposits		548,338		548,701		354,004		-		194,697
Short-term borrowings		44,704		44,704		44,704		-		-
Other borrowings		22,592		23,769		-		-		23,769
Accrued interest payable		975		975		975		-		-

Off-balance sheet financial instruments:
Commitments to extend credit and outstanding letters of credit		-		-		-		-		-



	Fair Value Measurements at December 31, 2013
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	7,863	$	7,863	$	7,863	$	-	$	-
Securities		158,306		158,309		328		157,981		-
Loans receivable, net		497,389		506,113		-		-		506,113
Mortgage servicing rights		289		289		-		289		-
Regulatory stock		2,877		2,877		2,877		-		-
Bank owned life insurance		17,790		17,790		17,790		-		-
Accrued interest receivable		2,422		2,422		2,422		-		-

Financial liabilities:
Deposits		541,182		542,123		329,753		-		212,370
Short-term borrowings		49,914		49,914		49,914		-		-
Other borrowings		23,761		25,923		-		-		25,923
Accrued interest payable		1,022		1,022		1,022		-		-

Off-balance sheet financial instruments:
Commitments to extend credit and outstanding letters of credit		-		-		-		-		-

- 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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