Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2014 and December 31, 2013:



			Fair Value Measurements at
			September 30, 2014
			Using
	Balance as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	September 30, 2014		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Assets:
Securities available for sale
Obligations of U.S. government corporations and agencies	$	36,772	$	—	$	36,772	$	—
Mortgage-backed securities	13,260		—		13,260		—
Obligations of states and political subdivisions	40,810		—		40,810		—
Corporate securities	7,019		—		7,019		—
Equity securities:
Bank preferred stock	1,161		1,161		—		—
Total assets at fair value	$	99,022	$	1,161	$	97,861	$	—
Liabilities:
Interest rate swap	314		—		314		—
Total liabilities at fair value	$	314	$	—	$	314	$	—

			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 September 30, 2014 (dollars in thousands):



	Quantitative information about Level 3 Fair Value Measurements for
	September 30, 2014
	Valuation Technique(s)	Unobservable Input	Range	Weighted Average
Assets:
Impaired loans	Discounted appraised value	Selling cost	12% - 60%	14%
Other real estate owned	Discounted appraised value	Selling cost	5% - 10%	8%

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 September 30, 2014 and December 31, 2013:



			Carrying value at
			September 30, 2014
	Balance as of		Identical Assets		Observable Inputs		Unobservable Inputs
	September 30, 2014		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Financial Assets:
Impaired loans	$	2,741	$	—	$	435	$	2,306
Nonfinancial Assets:
Other real estate owned	1,644		638		668		338
			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 September 30, 2014 were as follows:



	Fair Value Measurements at
	September 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	1,740			488
Transfers out of Level 3	(841		)	(150		)
Total assets at fair value	$	2,306		$	338

Company's Financial Instruments

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



	Fair Value Measurements at
	September 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
	September 30, 2014		(Level 1)		(Level 2)		(Level 3)		September 30, 2014
	(in thousands)
Financial Assets:
Cash and short-term investments	$	15,338	$	15,338	$	—	$	—	$	15,338
Securities	99,022		1,161		97,861		—		99,022
Restricted Investments	2,358		—		2,358		—		2,358
Loans, net	459,481		—		463,470		2,306		465,776
Accrued interest receivable	1,850		—		1,850		—		1,850

Financial Liabilities:
Deposits	$	495,136	$	—	$	495,235	$	—	$	495,235
Federal Home Loan Bank advances	30,000		—		30,249		—		30,249
Trust preferred capital notes	7,217		—		7,217		—		7,217
Accrued interest payable	155		—		155		—		155
Interest rate swap contract	314		—		314		—		314



	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 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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