Fair Value Measurements (Tables)

12 Months Ended

Dec. 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 December 31, 2014 and December 31, 2013:



			Fair Value Measurements at
			December 31, 2014
			Using
	Balance as of		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2014		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Assets:
Securities available for sale
Obligations of U.S. government corporations and agencies	$	37,211	$	—	$	37,211	$	—
Mortgage-backed securities	15,779		—		15,779		—
Obligations of states and political subdivisions	40,410		—		40,410		—
Corporate securities	765		—		765		—
Equity securities:
Bank preferred stock	—		—		—		—
Total assets at fair value	$	94,165	$	—	$	94,165	$	—
Liabilities:
Interest rate swap	289		—		289		—
Total liabilities at fair value	$	289	$	—	$	289	$	—

			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 for December 31, 2014:



	Quantitative information about Level 3 Fair Value Measurements for
	December 31, 2014
	Valuation Technique(s)	Unobservable Input	Range	Weighted Average
Assets:
Impaired loans	Discounted appraised value	Selling cost	11% - 60%	16%
Other real estate owned	Discounted appraised value	Selling cost	5% - 13%	9%

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 December 31, 2014 and December 31, 2013:



			Carrying value at
			December 31, 2014
	Balance as of		Identical Assets		Observable Inputs		Unobservable Inputs
	December 31, 2014		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Financial Assets:
Impaired loans	$	1,751	$	—	$	1,494	$	257
Nonfinancial Assets:
Other real estate owned	2,102		—		2,102		—
			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	$	2,719	$	—	$	1,312	$	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 twelve months ended December 31, 2014 were as follows:



	Fair Value Measurements at
	December 31, 2014
	Impaired Loans			Other Real Estate Owned
	(in thousands)
Balance - January 1, 2013	$	1,407		$	—
Sales proceeds	—			—
Valuation allowance	—			—
(Loss) on disposition	—			—
Transfers into Level 3	1,740			488
Transfers out of Level 3	(2,890		)	(488		)
Total assets at fair value	$	257		$	—

Company's Financial Instruments

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



	Fair Value Measurements at
	December 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
	December 31, 2014		(Level 1)		(Level 2)		(Level 3)		December 31, 2014
	(in thousands)
Financial Assets:
Cash and short-term investments	$	34,564	$	34,564	$	—	$	—	$	34,564
Securities	94,165		—		94,165		—		94,165
Restricted Investments	2,808		—		2,808		—		2,808
Loans, net	464,740		—		470,524		257		470,781
Accrued interest receivable	1,703		—		1,703		—		1,703

Financial Liabilities:
Deposits	$	503,816	$	—	$	503,917	$	—	$	503,917
Federal funds purchased and securities sold under agreements to repurchase	—		—		—		—		—
Federal Home Loan Bank advances	40,000		—		40,152		—		40,152
Trust preferred capital notes	7,217		—		7,217		—		7,217
Accrued interest payable	160		—		160		—		160
Interest rate swap contract	289		—		289		—		289



	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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