Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table presents balances of financial assets and liabilities measured at fair value on a recurring basis at March 31, 2014 and December 31, 2013:



			Fair Value Measurements at
			March 31, 2014
			Using
	Balance as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	March 31, 2014		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Assets:
Securities available for sale
Obligations of U.S. government corporations and agencies	$	37,321	$	—	$	37,321	$	—
Mortgage-backed securities	14,639		—		14,639		—
Obligations of states and political subdivisions	42,373		—		42,373		—
Corporate securities	8,451		—		8,451		—
Equity securities:
Bank preferred stock	1,166		1,166		—		—
Total assets at fair value	$	103,950	$	1,166	$	102,784	$	—
Liabilities:
Interest rate swap	395		—		395		—
Total liabilities at fair value	$	395	$	—	$	395	$	—

			Fair Value Measurements at
			December 31, 2013
			Using
	Balance as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Assets:
Securities available for sale
Obligations of U.S. government corporations and agencies	$	34,744	$	—	$	34,744	$	—
Mortgage-backed securities	15,197		—		15,197		—
Obligations of states and political subdivisions	43,116		—		43,116		—
Corporate securities	8,423		—		8,423		—
Equity securities:
Bank preferred stock	1,118		1,118		—		—
Total assets at fair value	$	102,598	$	1,118	$	101,480	$	—
Liabilities:
Interest rate swap	434		—		434		—
Total liabilities at fair value	$	434	$	—	$	434	$	—

Quantitative Information About Level 3 Fair Value Measurements For Certain Financial Assets

The following table displays quantitative information about Level 3 Fair Value Measurements for certain financial assets measured at fair value on a nonrecurring basis at March 31, 2014 (dollars in thousands):



	Quantitative information about Level 3 Fair Value Measurements for
	March 31, 2014
	Valuation Technique(s)	Unobservable Input	Range	Weighted Average
Assets:
Impaired loans	Discounted appraised value	Selling cost	11% - 30%	15%
Other real estate owned	Discounted appraised value	Selling cost	5% - 7%	6%

Financial And Nonfinancial Assets Measured At Fair Value On A Nonrecurring Basis

The following table summarizes the Company’s financial and nonfinancial assets that were measured at fair value on a nonrecurring basis at March 31, 2014 and December 31, 2013:



			Carrying value at
			March 31, 2014
	Balance as of		Identical Assets		Observable Inputs		Unobservable Inputs
	March 31, 2014		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Financial Assets:
Impaired loans	$	2,587	$	—	$	1,131	$	1,456
Nonfinancial Assets:
Other real estate owned	1,809		—		1,809		—
			Carrying value at
			December 31, 2013
	Balance as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Financial Assets:
Impaired loans	$	2,706	$	—	$	1,299	$	1,407
Nonfinancial Assets:
Other real estate owned	1,646		638		1,008		—

Level 3 Financial Assets Measured At Estimated Fair Value On Nonrecurring Basis

The changes in Level 3 financial assets measured at estimated fair value on a nonrecurring basis during the period ended March 31, 2014 were as follows:



	Fair Value Measurements at
	March 31, 2014
	Impaired Loans			Other Real Estate Owned
	(in thousands)
Balance - January 1, 2014	$	1,407		$	—
Sales proceeds	—			—
Valuation allowance	—			—
(Loss) on disposition	—			—
Transfers into Level 3	206			—
Transfers out of Level 3	(157		)	—
Total assets at fair value	$	1,456		$	—

Company's Financial Instruments

The carrying value and fair value of the Company’s financial instruments at March 31, 2014 and December 31, 2013 were as follows:



	Fair Value Measurements at
	March 31, 2014
	Using
	Carrying Value as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Fair Value as of
	March 31, 2014		(Level 1)		(Level 2)		(Level 3)		March 31, 2014
	(in thousands)
Financial Assets:
Cash and short-term investments	$	10,440	$	10,440	$	—	$	—	$	10,440
Securities	103,950		1,166		102,784		—		103,950
Restricted Investments	2,358		—		2,358		—		2,358
Loans, net	450,755		—		456,827		1,456		458,283
Accrued interest receivable	1,905		—		1,905		—		1,905

Financial Liabilities:
Deposits	$	483,104	$	—	$	483,490	$	—	$	483,490
Federal funds purchased and securities sold under agreements to repurchase	4,589		—		4,589		—		4,589
Federal Home Loan Bank advances	30,000		—		29,955		—		29,955
Trust preferred capital notes	7,217		—		7,217		—		7,217
Accrued interest payable	157		—		157		—		157
Interest rate swap contract	395		—		395		—		395



	Fair Value Measurements at
	December 31, 2013
	Using
	Carrying Value as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Fair Value as of
	December 31, 2013		(Level 1)		(Level 2)		(Level 3)		December 31, 2013
	(in thousands)
Financial assets:
Cash and short-term investments	$	14,243	$	14,243	$	—	$	—	$	14,243
Securities	102,598		1,118		101,480		—		102,598
Restricted Investments	2,192		—		2,192		—		2,192
Loans, net	438,785		—		446,329		1,407		447,736
Accrued interest receivable	1,797		—		1,797		—		1,797

Financial liabilities:
Deposits	$	487,587	$	—	$	488,074	$	—	$	488,074
Federal funds purchased and securities sold under agreements to repurchase	—		—		—		—		—
Federal Home Loan Bank advances	22,250		—		22,214		—		22,214
Trust preferred capital notes	7,217		—		7,217		—		7,217
Accrued interest payable	165		—		165		—		165
Interest rate swap contract	434		—		434		—		434

- 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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