Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Balances of Assets Measured at Fair Value on a Recurring Basis

The following tables present the balances of assets measured at fair value on a recurring basis as of December 31, 2013 and 2012.


			Fair Value Measurements at December 31, 2013 Using (in thousands)
Description	Balance as of December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Assets
Securities available for sale
U.S. agency and mortgage-backed securities	$	84,897	$	—	$	84,897	$	—
Obligations of states and political subdivisions		18,399		—		18,399		—
Corporate equity securities		5		5		—		—

	$	103,301	$	5	$	103,296	$	—


			Fair Value Measurements at December 31, 2012 Using (in thousands)
Description	Balance as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Assets
Securities available for sale
U.S. agency and mortgage-backed securities	$	73,218	$	—	$	73,218	$	—
Obligations of states and political subdivisions		16,235		—		16,235		—
Corporate equity securities		3		3		—		—

	$	89,456	$	3	$	89,453	$	—

Summary of Assets Measured at Fair Value on a Nonrecurring Basis

The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2013 and 2012.


			Fair Value Measurements at December 31, 2013 (in thousands)
Description	Balance as of December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Assets
Impaired loans, net	$	3,972	$	—	$	—	$	3,972
Other real estate owned, net		3,030		—		—		3,030


			Fair Value Measurements at December 31, 2012 (in thousands)
Description	Balance as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Assets
Impaired loans, net	$	7,944	$	—	$	—	$	7,944
Other real estate owned, net		5,590		—		—		5,590

Quantitative Information about Level 3 Fair Value Measurements


	Quantitative information about Level 3 Fair Value Measurements for December 31, 2013 (dollars in thousands)
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Assets
Impaired loans	$	3,972	Property appraisals	Selling cost	10%
				Discount for lack of marketability and age of appraisal	0%-41% (8%)

Other real estate owned		3,030	Property appraisals	Selling cost	7%

Carrying Values and Estimated Fair Values of Company's Financial Instruments

The carrying values and estimated fair values of the Company’s financial instruments at December 31, 2013 and 2012 are as follows:


	(in thousands)
	Fair Value Measurements at December 31, 2013 using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value

Financial Assets
Cash and short-term investments	$	31,508	$	31,508	$	—	$	—	$	31,508
Securities		103,301		5		103,296		—		103,301
Restricted stock		1,804		—		1,804		—		1,804
Loans, net		346,449		—		—		353,874		353,874
Bank owned life insurance		10,978		—		10,978		—		10,978
Accrued interest receivable		1,302		—		1,302		—		1,302

Financial Liabilities
Deposits	$	450,711	$	—	$	326,955	$	124,422	$	451,377
Other borrowings		6,052		—		—		6,095		6,095
Trust preferred capital notes		9,279		—		—		9,399		9,399
Accrued interest payable		177		—		177		—		177

	(in thousands)
	Fair Value Measurements at December 31, 2012 using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value

Financial Assets
Cash and short-term investments	$	31,028	$	31,028	$	—	$	—	$	31,028
Securities		89,456		3		89,453		—		89,456
Restricted stock		1,974		—		1,974		—		1,974
Loans held for sale		503		—		503		—		503
Loans, net		370,519		—		—		375,941		375,941
Bank owned life insurance		10,609		—		10,609		—		10,609
Accrued interest receivable		1,459		—		1,459		—		1,459

Financial Liabilities
Deposits	$	466,917	$	—	$	306,719	$	162,151	$	468,870
Other borrowings		6,076		—		—		6,220		6,220
Trust preferred capital notes		9,279		—		—		8,735		8,735
Accrued interest payable		286		—		286		—		286

- 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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