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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of Assets Measured at Fair Value on Recurring Basis

The following table presents assets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014. There were no liabilities measured at fair value on a recurring basis for either period presented.

	Fair Value Measurements as of September 30, 2015 Using
	Totals At September 30, 2015		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Investment securities, available-for-sale
Mortgage-backed securities:
Residential	$	138,504	$	—	$	138,504	$	—
Commercial		45,993		—		45,993		—
Obligations of states and political subdivisions		15,358		—		15,358		—
Obligations of U.S. government-sponsored agencies		3,996		—		3,996		—
Corporate notes		788		—		788		—
U.S. Treasury securities		80		—		80		—
Other assets - derivatives		4		—		4		—

	Fair Value Measurements as of December 31, 2014 Using
	Totals At December 31, 2014		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Investment securities, available-for-sale
Mortgage-backed securities:
Residential	$	141,684	$	—	$	141,684	$	—
Commercial		35,944		—		35,944		—
Obligations of states and political subdivisions		16,914		—		16,914		—
Obligations of U.S. government-sponsored agencies		6,364		—		6,364		—
U.S. Treasury securities		4,060		—		4,060		—
Other assets - derivatives		68		—		68		—

Balances of Impaired Loans and OREO Measured at Fair Value on Nonrecurring Basis

The following table presents the balances of impaired loans and OREO measured at fair value on a non-recurring basis as of September 30, 2015 and December 31, 2014.

	Fair Value Measurements as of September 30, 2015 Using
	Totals At September 30, 2015		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Impaired loans	$	4,243	$	—	$	—	$	4,243
OREO		6,656		—		—		6,656

	Fair Value Measurements as of December 31, 2014 Using
	Totals At December 31, 2014		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in Thousands)
Impaired loans	$	1,456	$	—	$	—	$	1,456
OREO		7,735		—		—		7,735

Summary of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input.

	Level 3 Significant Unobservable Input Assumptions
	Fair Value as of September 30, 2015		Valuation Technique	Unobservable Input	Quantitative Range of Unobservable Inputs (Weighted Average)
	(Dollars in Thousands)
Non-recurring fair value measurements:

Impaired loans	$	4,243	Multiple data points, including discount to appraised value of collateral based on recent market activity	Appraisal comparability adjustment (discount)	9% - 10% (9.5%)

OREO	$	6,656	Discount to appraised value of property based on recent market activity for sales of similar properties	Appraisal comparability adjustment (discount)	9% - 10% (9.5%)

Schedule of Estimated Fair Value and Related Carrying or Notional Amounts of Company's Financial Instruments

The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of September 30, 2015 and December 31, 2014, were as follows:

	September 30, 2015
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Assets:
Cash and cash equivalents	$	27,616	$	27,616	$	27,616	$	—	$	—
Investment securities available-for-sale		204,719		204,719		—		204,719		—
Investment securities held-to-maturity		34,290		34,222		—		34,222		—
Federal Home Loan Bank stock		515		515		—		—		515
Loans, net of allowance for loan losses		237,715		235,907		—		—		235,907
Other assets – derivatives		4		4		—		4		—
Liabilities:
Deposits		463,266		463,270		—		463,270		—
Short-term borrowings		1,175		1,175		—		1,175		—

	December 31, 2014
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Assets:
Cash and cash equivalents	$	34,166	$	34,166	$	34,166	$	—	$	—
Investment securities available-for-sale		204,966		204,966		—		204,966		—
Investment securities held-to-maturity		29,120		29,154		—		29,154		—
Federal Home Loan Bank stock		738		738		—		—		738
Loans, net of allowance for loan losses		259,516		259,337		—		—		259,337
Other assets – derivatives		68		68		—		68		—
Liabilities:
Deposits		483,659		484,108		—		484,108		—
Short-term borrowings		436		436		—		436		—
Long-term debt		5,000		5,007		—		5,007		—