Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

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)

June 30, 2016
Available for Sale:
States and political subdivisions	$	58,349	$	-	$	58,349	$	-
Corporate obligations		3,328		-		3,328		-
Mortgage-backed securities-government
sponsored agencies		67,691		-		67,691		-
Equity securities-financial services		353		353		-		-
Total	$	129,721	$	353	$	129,368	$	-


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

December 31, 2015
Available for Sale:
U.S. Government agencies	$	9,169	$	-	$	9,169	$	-
States and political subdivisions		60,755		-		60,755		-
Corporate obligations		4,974		-		4,974		-
Mortgage-backed securities-government
sponsored agencies		63,569		-		63,569		-
Equity securities-financial services		384		384		-		-
Total	$	138,851	$	384	$	138,467	$	-

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



			Fair Value Measurement Reporting Date using Reporting Date

(In thousands)

Description	Total		Level 1		Level 2		Level 3
June 30, 2016
Impaired Loans	$	3,297	$	-	$	-	$	3,297
Foreclosed Real Estate Owned		5,414		-		-		5,414


December 31, 2015
Impaired Loans	$	7,615	$	-	$	-	$	7,615
Foreclosed Real Estate Owned		2,847		-		-		2,847

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



		Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
June 30, 2016
Impaired loans	$	1,709	Appraisal of collateral(1)	Appraisal adjustments(2)	10% (10%)
Impaired loans	$	1,588	Present value of future cash flows	Loan discount rate	4 - 6.75% (5.46%)

Foreclosed real estate owned	$	5,414	Appraisal of collateral(1)	Liquidation Expenses(2)	0 - 20% (14.20%)



	Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
December 31, 2015
Impaired loans	$	2,574	Appraisal of collateral(1)	Appraisal adjustments(2)	10% (10%)
Impaired loans	$	5,041	Present value of future cash flows	Loan discount rate	4-7% (5.61%)

Foreclosed real estate owned	$	2,847	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 June 30, 2016
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	12,615	$	12,615	$	12,615	$	-	$	-
Securities		129,721		129,721		353		129,368		-
Loans receivable, net		575,422		578,725		-		-		578,725
Mortgage servicing rights		255		260		-		-		260
Regulatory stock		2,228		2,228		2,228		-		-
Bank owned life insurance		19,082		19,082		19,082		-		-
Accrued interest receivable		2,289		2,289		2,289		-		-

Financial liabilities:
Deposits		584,259		584,515		388,105		-		196,410
Short-term borrowings		38,100		38,100		38,100		-		-
Other borrowings		36,579		36,896		-		-		36,896
Accrued interest payable		891		891		891		-		-

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



	Fair Value Measurements at December 31, 2015
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	10,010	$	10,010	$	10,010	$	-	$	-
Securities		138,851		138,851		384		138,467		-
Loans receivable, net		552,627		559,416		-		-		559,416
Mortgage servicing rights		261		291		-		-		291
Regulatory stock		3,412		3,412		3,412		-		-
Bank owned life insurance		18,820		18,820		18,820		-		-
Accrued interest receivable		2,363		2,363		2,363		-		-

Financial liabilities:
Deposits		550,909		551,175		354,162		-		197,013
Short-term borrowings		53,235		53,235		53,235		-		-
Other borrowings		41,126		41,260		-		-		41,260
Accrued interest payable		957		957		957		-		-

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