Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

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 September 30, 2015 and December 31, 2014 (in thousands).


			Fair Value Measurements at September 30, 2015
Description	Balance as of September 30, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Securities available for sale
U.S. agency and mortgage-backed securities	$	92,863	$	—	$	92,863	$	—
Obligations of states and political subdivisions		16,295		—		16,295		—
Corporate equity securities		8		8		—		—

	$	109,166	$	8	$	109,158	$	—


			Fair Value Measurements at December 31, 2014
Description	Balance as of December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Securities available for sale
U.S. agency and mortgage-backed securities	$	67,029	$	—	$	67,029	$	—
Obligations of states and political subdivisions		16,257		—		16,257		—
Corporate equity securities		6		6		—		—

	$	83,292	$	6	$	83,286	$	—

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 during the periods (dollars in thousands):


			Fair Value Measurements at September 30, 2015
Description	Balance as of September 30, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Impaired loans, net	$	1,446	$	—	$	—	$	1,446
Other real estate owned, net		2,760		—		—		2,760

			Fair Value Measurements at December 31, 2014
Description	Balance as of December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Impaired loans, net	$	2,976	$	—	$	—	$	2,976
Other real estate owned, net		1,888		—		—		1,888

Quantitative Information about Level 3 Fair Value Measurements


	Quantitative information about Level 3 Fair Value Measurements for September 30, 2015
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)

Impaired loans, net	$	1,446	Property appraisals	Selling cost	6-10% (8%)

Other real estate owned, net	$	2,760	Property appraisals	Selling cost	7%

	Quantitative information about Level 3 Fair Value Measurements for December 31, 2014
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)

Impaired loans, net	$	2,976	Property appraisals	Selling cost	10%

Other real estate owned, net	$	1,888	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 September 30, 2015 and December 31, 2014 are as follows (in thousands):


	Fair Value Measurements at September 30, 2015 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	$	76,846	$	76,846	$	—	$	—	$	76,846
Securities available for sale		109,166		8		109,158		—		109,166
Securities held to maturity		54,276		—		54,303		—		54,303
Restricted securities		1,391		—		1,391		—		1,391
Loans held for sale		471		—		471		—		471
Loans, net		400,838		—		—		408,853		408,853
Bank owned life insurance		11,627		—		11,627		—		11,627
Accrued interest receivable		1,543		—		1,543		—		1,543

Financial Liabilities
Deposits	$	613,907	$	—	$	467,688	$	146,177	$	613,865
Other borrowings		7		—		—		7		7
Junior subordinated debt		9,279		—		—		8,623		8,623
Accrued interest payable		116		—		116		—		116


	Fair Value Measurements at December 31, 2014 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	$	24,845	$	24,845	$	—	$	—	$	24,845
Securities		83,292		6		83,286		—		83,292
Restricted securities		1,366		—		1,366		—		1,366
Loans held for sale		328		—		328		—		328
Loans, net		371,692		—		—		378,930		378,930
Bank owned life insurance		11,357		—		11,357		—		11,357
Accrued interest receivable		1,261		—		1,261		—		1,261

Financial Liabilities
Deposits	$	444,338	$	—	$	342,604	$	101,606	$	444,210
Federal funds purchased		52		—		52		—		52
Other borrowings		26		—		—		26		26
Junior subordinated debt		9,279		—		—		9,756		9,756
Accrued interest payable		135		—		135		—		135