Disclosures about Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Disclosures about Fair Value Measurements [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liability measured at fair value on a recurring basis are summarized below (in thousands):


	Fair Value Measurements at September 30, 2017 Using
	Total			(Level 1)		(Level 2)		(Level 3)
US Agency securities	$	5,402		$	—	$	5,402	$	—
US Agency mortgage-backed securities		81,240			—		81,240		—
Taxable municipal		7,067			—		7,067		—
Corporate bonds		35,737			—		35,737		—
Fair value swap asset		84			—		—		84
Fair value swap liability		(84	)		—		—		(84	)


	Fair Value Measurements at December 31, 2016 Using
	Total		(Level 1)		(Level 2)		(Level 3)
US Agency securities	$	398	$	—	$	398	$	—
US Agency mortgage-backed securities		89,184		—		89,184		—
Taxable municipal		3,622		—		3,622		—
Corporate bonds		33,873		—		33,873		—

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

Assets measured at fair value on a non-recurring basis are summarized below (in thousands, except range data):


	Fair Value Measurements at September 30, 2017 Using
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	3,035	$	—	$	—	$	3,035
Other real estate owned		39		—		—		39


	Fair Value Measurements at December 31, 2016 Using
	Total		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	147	$	—	$	—	$	147
Other real estate owned		21		—		—		21

September 30, 2017

Quantitative Information About Level 3 Fair Value Measurements

Fair Value
Estimate

Valuation
Techniques

Unobservable Input

Range (Wgtd Ave)

Impaired loans

3,035

Appraisal of
collateral⁽¹⁾^,⁽³⁾

Appraisal
adjustments⁽²⁾

40% to 77%(42%)

Other real estate owned

Appraisal of
collateral⁽¹⁾^,⁽³⁾

Appraisal
adjustments⁽²⁾
Liquidation
expenses

43% to 45%(43%)
2% to 206%(64%)

December 31, 2016

Quantitative Information About Level 3 Fair Value Measurements

Fair Value
Estimate

Valuation
Techniques

Unobservable Input

Range (Wgtd Ave)

Impaired loans

147

Appraisal of
collateral⁽¹⁾^,⁽³⁾

Appraisal
adjustments⁽²⁾

40% to 99%(45%)

Other real estate owned

Appraisal of
collateral⁽¹⁾^,⁽³⁾

Appraisal
adjustments⁽²⁾
Liquidation
expenses

20% to 77%(42%)
3% to 199%(37%)

(1)

Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2)

Appraisals may be adjusted by management for qualitative factors such as economic conditions.

(3)

Includes qualitative adjustments by management and estimated liquidation expenses.

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

The estimation methodologies used, the estimated fair values based on US GAAP measurements, and recorded book balances at September 30, 2017 and December 31, 2016, were as follows (in thousands):


	September 30, 2017
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Cash and cash equivalents	$	28,675	$	28,675	$	28,675	$	—	$	—
Investment securities – AFS		129,446		129,446		—		129,446		—
Investment securities – HTM		38,997		39,059		—		36,105		2,954
Regulatory stock		6,554		6,554		6,554		—		—
Loans held for sale		1,780		1,801		1,801		—		—
Loans, net of allowance for loan loss and unearned income		885,864		884,359		—		—		884,359
Accrued interest income receivable		3,503		3,503		3,503		—		—
Bank owned life insurance		37,716		37,716		37,716		—		—
Fair value swap asset		84		84		—		—		84
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	707,566	$	707,566	$	707,566	$	—	$	—
Deposits with stated maturities		259,355		260,498		—		—		260,498
Short-term borrowings		33,593		33,593		33,593		—		—
All other borrowings		64,420		67,962		—		—		67,962
Accrued interest payable		1,622		1,622		1,622		—		—
Fair value swap liability		84		84		—		—		84


	December 31, 2016
	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
FINANCIAL ASSETS:
Cash and cash equivalents	$	34,073	$	34,073	$	34,073	$	—	$	—
Investment securities – AFS		127,077		127,077		—		127,077		—
Investment securities – HTM		30,665		30,420		—		27,473		2,947
Regulatory stock		5,484		5,484		5,484		—		—
Loans held for sale		3,094		3,158		3,158		—		—
Loans, net of allowance for loan loss and unearned income		873,832		869,960		—		—		869,960
Accrued interest income receivable		3,116		3,116		3,116		—		—
Bank owned life insurance		37,903		37,903		37,903		—		—
FINANCIAL LIABILITIES:
Deposits with no stated maturities	$	708,062	$	708,062	$	708,062	$	—	$	—
Deposits with stated maturities		259,724		261,446		—		—		261,446
Short-term borrowings		12,754		12,754		12,754		—		—
All other borrowings		65,891		69,348		—		—		69,348
Accrued interest payable		1,640		1,640		1,640		—		—