Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2014 and December 31, 2013:



			Fair Value Measurements at
			June 30, 2014
			Using
	Balance as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Assets:
Securities available for sale
Obligations of U.S. government corporations and agencies	$	36,705	$	—	$	36,705	$	—
Mortgage-backed securities	14,095		—		14,095		—
Obligations of states and political subdivisions	40,789		—		40,789		—
Corporate securities	7,507		—		7,507		—
Equity securities:
Bank preferred stock	1,190		1,190		—		—
Total assets at fair value	$	100,286	$	1,190	$	99,096	$	—
Liabilities:
Interest rate swap	377		—		377		—
Total liabilities at fair value	$	377	$	—	$	377	$	—

			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 June 30, 2014 (dollars in thousands):



	Quantitative information about Level 3 Fair Value Measurements for
	June 30, 2014
	Valuation Technique(s)	Unobservable Input	Range	Weighted Average
Assets:
Impaired loans	Discounted appraised value	Selling cost	9% - 30%	13%
Other real estate owned	Discounted appraised value	Selling cost	5% - 7%	7%

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 June 30, 2014 and December 31, 2013:



			Carrying value at
			June 30, 2014
	Balance as of		Identical Assets		Observable Inputs		Unobservable Inputs
	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Financial Assets:
Impaired loans	$	2,767	$	—	$	—	$	2,767
Nonfinancial Assets:
Other real estate owned	1,959		353		1,456		150
			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 June 30, 2014 were as follows:



	Fair Value Measurements at
	June 30, 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	1,664			150
Transfers out of Level 3	(304		)	—
Total assets at fair value	$	2,767		$	150

Company's Financial Instruments

The carrying value and fair value of the Company’s financial instruments at June 30, 2014 and December 31, 2013 were as follows:



	Fair Value Measurements at
	June 30, 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
	June 30, 2014		(Level 1)		(Level 2)		(Level 3)		June 30, 2014
	(in thousands)
Financial Assets:
Cash and short-term investments	$	12,405	$	12,405	$	—	$	—	$	12,405
Securities	100,286		1,190		99,096		—		100,286
Restricted Investments	2,358		—		2,358		—		2,358
Loans, net	458,447		—		463,749		2,767		466,516
Accrued interest receivable	1,788		—		1,788		—		1,788

Financial Liabilities:
Deposits	$	492,045	$	—	$	492,340	$	—	$	492,340
Federal funds purchased and securities sold under agreements to repurchase	—		—		—		—		—
Federal Home Loan Bank advances	30,000		—		29,613		—		29,613
Trust preferred capital notes	7,217		—		7,217		—		7,217
Accrued interest payable	155		—		155		—		155
Interest rate swap contract	377		—		377		—		377



	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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