Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value, Assets Measured on Recurring Basis



	Fair Value Measurement Using
	Reporting Date


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

September 30, 2017
Available for Sale:
U.S. Treasury securities	$	1,996	$	-	$	1,996	$	-
States and political subdivisions		119,705		-		119,705		-
Corporate obligations		10,089		-		10,089		-
Mortgage-backed securities-government
sponsored agencies		153,680		-		153,680		-
Equity securities-financial services		236		236		-		-
Total	$	285,706	$	236	$	285,470	$	-


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

December 31, 2016
Available for Sale:
U.S. Treasury securities	$	1,997	$	-	$	1,997	$	-
States and political subdivisions		125,101		-		125,101		-
Corporate obligations		10,112		-		10,112		-
Mortgage-backed securities-government
sponsored agencies		164,930		-		164,930		-
Equity securities-financial services		424		424		-		-
Total	$	302,564	$	424	$	302,140	$	-

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
September 30, 2017
Impaired Loans	$	1,405	$	-	$	-	$	1,405
Foreclosed Real Estate Owned		4,243		-		-		4,243


December 31, 2016
Impaired Loans	$	2,624	$	-	$	-	$	2,624
Foreclosed Real Estate Owned		5,302		-		-		5,302

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)
September 30, 2017
Impaired loans	$	279	Appraisal of collateral(1)	Appraisal adjustments(2)	10% (10%)
Impaired loans	$	1,126	Present value of future cash flows	Loan discount rate	4.00 - 5.25% (5.11%)
				Probability of default	0%

Foreclosed real estate owned	$	4,243	Appraisal of collateral(1)	Liquidation Expenses(2)	0%



	Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
December 31, 2016
Impaired loans	$	1,473	Appraisal of collateral(1)	Appraisal adjustments(2)	10% (10%)
Impaired loans	$	1,151	Present value of future cash flows	Loan discount rate	4.00 - 5.25% (5.11%)
				Probability of default	0%

Foreclosed real estate owned	$	5,302	Appraisal of collateral(1)	Liquidation Expenses(2)	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, 2017
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	14,315	$	14,315	$	14,315	$	-	$	-
Securities		285,706		285,706		236		285,470		-
Loans receivable, net		748,254		751,637		-		-		751,637
Mortgage servicing rights		208		239		-		-		239
Regulatory stock		3,115		3,115		3,115		-		-
Bank owned life insurance		36,839		36,839		36,839		-		-
Accrued interest receivable		3,729		3,729		3,729		-		-

Financial liabilities:
Deposits		924,022		923,452		647,046		-		276,406
Short-term borrowings		47,229		47,229		47,229		-		-
Other borrowings		31,771		31,549		-		-		31,549
Accrued interest payable		1,167		1,167		1,167		-		-

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



	Fair Value Measurements at December 31, 2016
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	17,174	$	17,174	$	17,174	$	-	$	-
Securities		302,564		302,564		424		302,140		-
Loans receivable, net		707,426		716,661		-		-		716,661
Mortgage servicing rights		232		250		-		-		250
Regulatory stock		2,119		2,119		2,119		-		-
Bank owned life insurance		36,133		36,133		36,133		-		-
Accrued interest receivable		3,643		3,643		3,643		-		-

Financial liabilities:
Deposits		925,385		925,561		629,829		-		295,732
Short-term borrowings		32,811		32,811		32,811		-		-
Other borrowings		32,001		31,863		-		-		31,863
Accrued interest payable		1,069		1,069		1,069		-		-

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