Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2016 and December 31, 2015 (in thousands).


			Fair Value Measurements at June 30, 2016
Description	Balance as of June 30, 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	$	79,674	$	—	$	79,674	$	—
Obligations of states and political subdivisions		14,876		—		14,876		—
Corporate equity securities		16		16		—		—

	$	94,566	$	16	$	94,550	$	—


			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 June 30, 2016
Description	Balance as of June 30, 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	$	364	$	—	$	—	$	364
Other real estate owned, net		442		—		—		442

			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 June 30, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted- Average)
Impaired loans, net	$	364	Property appraisals	Selling cost	10%
Other real estate owned, net	$	442	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 June 30, 2016 and December 31, 2015 are as follows (in thousands):


	Fair Value Measurements at June 30, 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	$	50,743	$	50,743	$	—	$	—	$	50,743
Securities available for sale		94,566		16		94,550		—		94,566
Securities held to maturity		57,401		—		56,840		1,535		58,375
Restricted securities		2,058		—		2,058		—		2,058
Loans held for sale		1,819		—		1,819		—		1,819
Loans, net		459,812		—		—		468,394		468,394
Bank owned life insurance		13,935		—		13,935		—		13,935
Accrued interest receivable		1,612		—		1,612		—		1,612
Financial Liabilities
Deposits	$	630,346	$	—	$	496,867	$	133,630	$	630,497
Other borrowings		12,000		—		—		11,998		11,998
Subordinated debt		4,921		—		—		5,013		5,013
Junior subordinated debt		9,279		—		—		8,111		8,111
Accrued interest payable		98		—		98		—		98


	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