Fair Value of Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value, by Balance Sheet Grouping [Table Text Block]

Fair value estimates of the Company’s financial instruments as of September 30, 2016 and December 31, 2015, including methods and assumptions utilized, are set forth below:

(Dollars in thousands)	As of September 30, 2016
	Carrying
	amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	17,650	$	17,650	$	-	$	-	$	17,650
Investment securities available-for-sale		374,426		7,032		367,394		-		374,426
Bank stocks, at cost		4,869		n/a		n/a		n/a		n/a
Loans, net		430,054		-		-		431,408		431,408
Loans held for sale, net		9,098		-		9,098		-		9,098
Derivative financial instruments		553		-		553		-		553
Accrued interest receivable		4,160		11		1,901		2,248		4,160

Financial liabilities:
Non-maturity deposits	$	(569,428)	$	(569,428)	$	-	$	-		(569,428)
Time deposits		(146,283)		-		(145,631)		-		(145,631)
FHLB borrowings		(52,700)		-		(53,708)		-		(53,708)
Subordinated debentures		(21,234)		-		(18,906)		-		(18,906)
Other borrowings		(12,525)		-		(12,525)		-		(12,525)
Accrued interest payable		(265)		-		(265)		-		(265)

	As of December 31, 2015
	Carrying
	amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	13,569	$	13,569	$	-	$	-	$	13,569
Investment securities available-for-sale		353,438		8,003		345,435		-		353,438
Bank stocks, at cost		4,497		n/a		n/a		n/a		n/a
Loans, net		419,923		-		-		420,061		420,061
Derivative financial instruments		797		-		797		-		797
Accrued interest receivable		4,002		22		2,117		1,863		4,002

Financial liabilities:
Non-maturity deposits	$	(570,784)	$	(570,784)	$	-	$	-	$	(570,784)
Time deposits		(143,943)		-		(142,924)		-		(142,924)
FHLB borrowings		(37,600)		-		(38,215)		-		(38,215)
Subordinated debentures		(21,084)		-		(19,051)		-		(19,051)
Other borrowings		(11,974)		-		(11,974)		-		(11,974)
Accrued interest payable		(287)		-		(287)		-		(287)

Fair Value, Assets Measured On Recurring Basis [Table Text Block]

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015, allocated to the appropriate fair value hierarchy:

(Dollars in thousands)			As of September 30, 2016
			Fair value hierarchy
	Total		Level 1		Level 2		Level 3
Assets:
Available-for-sale investment securities
U. S. treasury securities	$	6,030	$	6,030	$	-	$	-
U. S. federal agency obligations		27,349		-		27,349		-
Municipal obligations, tax exempt		163,848		-		163,848		-
Municipal obligations, taxable		73,628		-		73,628		-
Agency mortgage-backed securities		92,869		-		92,869		-
Common stocks		1,002		1,002		-		-
Certificates of deposit		9,700		-		9,700		-
Derivative financial instruments	$	553	$	-	$	553	$	-

(Dollars in thousands)			As of December 31, 2015
			Fair value hierarchy
	Total		Level 1		Level 2		Level 3
Assets:
Available-for-sale investment securities
U. S. treasury securities	$	6,517	$	6,517	$	-	$	-
U. S. federal agency obligations		29,920		-		29,920		-
Municipal obligations, tax exempt		137,941		-		137,941		-
Municipal obligations, taxable		81,890		-		81,890		-
Agency mortgage-backed securities		85,985		-		85,985		-
Common stocks		1,486		1,486		-		-
Certificates of deposit		9,699		-		9,699		-
Derivative financial instruments		797		-		797		-

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

The following table represents the Company’s financial instruments that are measured at fair value on a non-recurring basis as of September 30, 2016 and December 31, 2015 allocated to the appropriate fair value hierarchy:

(Dollars in thousands)

			As of September 30, 2016						Total
			Fair value hierarchy						gains/
	Total		Level 1		Level 2		Level 3		(losses)
Assets:
Impaired loans:
Commercial loans	$	39	$	-	$	-	$	39	$	(13)
Agriculture loans		449		-		-		449		(2)
Consumer loans		26		-		-		26		(12)
Real estate owned:
One-to-four family residential real estate		540		-		-		540		-

			As of December 31, 2015						Total
			Fair value hierarchy						(losses)/
	Total		Level 1		Level 2		Level 3		gains
Assets:
Impaired loans:
One-to-four family residential real estate	$	266	$	-	$	-	$	266	$	(137)
Consumer loans		16		-		-		16		6
Loans held for sale		14,465		-		14,465		-		(10)

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The following table presents quantitative information about Level 3 fair value measurements for impaired loans measured at fair value on a non-recurring basis as of September 30, 2016 and December 31, 2015.

(Dollars in thousands)

	Fair value		Valuation technique	Unobservable inputs	Range
As of September 30, 2016
Impaired loans:
Commercial loans	$	39	Sales comparison	Adjustment to appraised value		7	%
Agriculture loans		449	Sales comparison	Adjustment to appraised value		15%-50	%
Consumer loans		26	Sales comparison	Adjustment to appraised value		6%-20	%
Real estate owned:
One-to-four family residential real estate		540	Sales comparison	Adjustment to appraised value		10	%

As of December 31, 2015
Impaired loans:
One-to-four family residential real estate	$	266	Sales comparison	Adjustment to appraised value		0%-40	%
Consumer loans		16	Sales comparison	Adjustment to comparable sales		0	%