Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015 (in thousands).


			Fair Value Measurements at March 31, 2016
Description	Balance as of March 31, 2016		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	$	83,640	$	—	$	83,640	$	—
Obligations of states and political subdivisions		15,368		—		15,368		—
Corporate equity securities		11		11		—		—

	$	99,019	$	11	$	99,008	$	—


			Fair Value Measurements at December 31, 2015
Description	Balance as of December 31, 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	$	89,337	$	—	$	89,337	$	—
Obligations of states and political subdivisions		16,214		—		16,214		—
Corporate equity securities		8		8		—		—

	$	105,559	$	8	$	105,551	$	—

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 March 31, 2016
Description	Balance as of March 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans, net	$	564	$	—	$	—	$	564
Other real estate owned, net		2,112		—		—		2,112

			Fair Value Measurements at December 31, 2015
Description	Balance as of December 31, 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	$	377	$	—	$	—	$	377
Other real estate owned, net		2,679		—		—		2,679

Quantitative Information about Level 3 Fair Value Measurements


	Quantitative information about Level 3 Fair Value Measurements for March 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range(Weighted- Average)
Impaired loans, net	$	564	Property appraisals	Selling cost	1-10% (4%)
Other real estate owned, net	$	2,112	Property appraisals	Selling cost	7%


	Quantitative information about Level 3 Fair Value Measurements for December 31, 2015
	Fair Value		Valuation Technique	Unobservable Input	Range(Weighted- Average)
Impaired loans, net	$	377	Property appraisals	Selling cost	2-10% (5%)
Other real estate owned, net	$	2,679	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 March 31, 2016 and December 31, 2015 are as follows (in thousands):


	Fair Value Measurements at March 31, 2016 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	$	39,327	$	39,327	$	—	$	—	$	39,327
Securities available for sale		99,019		11		99,008		—		99,019
Securities held to maturity		64,963		—		64,030		1,538		65,568
Restricted securities		1,548		—		1,548		—		1,548
Loans held for sale		523		—		523		—		523
Loans, net		448,556		—		—		456,263		456,263
Bank owned life insurance		13,828		—		13,828		—		13,828
Accrued interest receivable		1,741		—		1,741		—		1,741
Financial Liabilities
Deposits	$	633,118	$	—	$	496,382	$	136,654	$	633,036
Subordinated debt		4,917		—		—		5,001		5,001
Junior subordinated debt		9,279		—		—		8,578		8,578
Accrued interest payable		111		—		111		—		111


	Fair Value Measurements at December 31, 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	$	39,334	$	39,334	$	—	$	—	$	39,334
Securities available for sale		105,559		8		105,551		—		105,559
Securities held to maturity		66,519		—		64,938		1,500		66,438
Restricted securities		1,391		—		1,391		—		1,391
Loans held for sale		323		—		323		—		323
Loans, net		433,475		—		—		438,392		438,392
Bank owned life insurance		11,742		—		11,742		—		11,742
Accrued interest receivable		1,661		—		1,661		—		1,661
Financial Liabilities
Deposits	$	627,116	$	—	$	486,015	$	140,306	$	626,321
Subordinated debt		4,913		—		—		4,913		4,913
Junior subordinated debt		9,279		—		—		8,141		8,141
Accrued interest payable		117		—		117		—		117