Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014:

(Dollars in thousands)			Fair Value Measurements at December 31, 2015 Using
Description	Balance		Level 1		Level 2		Level 3
Securities available-for-sale:
Corporate bonds	$	3,945	$	—	$	—	$	3,945
U. S. Government agencies		21,288		1,216		20,072		—
State and municipal obligations		28,857		—		28,857		—
Certificates of deposit		5,735		—		5,487		248
Total securities available-for-sale:	$	59,825	$	1,216	$	54,416	$	4,193
Mortgage servicing rights	$	658	$	—	$	—	$	658
Defined benefit plan assets:
Cash and cash equivalents	$	3	$	3	$	—	$	—
Mutual funds - fixed income		1,119		1,119		—		—
Mutual funds - equity		1,684		1,684		—		—
Total defined benefit plan assets	$	2,806	$	2,806	$	—	$	—
			Fair Value Measurements at December 31, 2014 Using
Description	Balance		Level 1		Level 2		Level 3
Securities available-for-sale:
U. S. Government agencies	$	16,965	$	845	$	16,120	$	—
State and municipal obligations		23,401		—		23,401		—
Certificates of deposit		2,238		—		2,238		—
Total securities available-for-sale:	$	42,604	$	845	$	41,759	$	—
Mortgage servicing rights	$	596	$	—	$	—	$	596
Defined benefit plan assets:
Cash and cash equivalents	$	4	$	4	$	—	$	—
Mutual funds - fixed income		1,139		1,139		—		—
Mutual funds - equity		1,754		1,754		—		—
Total defined benefit plan assets	$	2,897	$	2,897	$	—	$	—

Reconciliation of Items Using Level Three Inputs

The reconciliation of items using Level 3 inputs is as follows:

			Corporate			Certificates of
(Dollars in thousands)	MSRs		Bonds			Deposit
Balance, January 1, 2015	$	596	$	—		$	—
Purchases		—		3,950			248
Impairments		—		—			—
Fair value adjustments		62		(5	)		—
Sales		—		—			—
Balance, December 31, 2015	$	658	$	3,945		$	248

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period.

			Fair Value Measurements at December 31, 2015 Using
(Dollars in thousands)	Balance as of
Description	December 31, 2015		Level 1		Level 2		Level 3
Impaired Loans, net	$	3,868	$	—	$	—	$	3,868
Other real estate owned, net		1,870		—		—		1,870
			Fair Value Measurements at December 31, 2014 Using
	Balance as of
Description	December 31, 2014		Level 1		Level 2		Level 3
Impaired Loans, net	$	1,958	$	—	$	—	$	1,958
Other real estate owned, net		2,791		—		—		2,791

Summary of Quantitative Fair Value Measurements for Level 3

The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2015:

							Range
	Balance as of		Valuation		Unobservable		(Weighted
(Dollars in thousands)	December 31, 2015		Technique		Input		Average)
Impaired Loans, net	$	3,868		Discounted appraised value		Selling Cost		10% - 25% (13%)
						Lack of Marketability		50% - 60% (51%)
Other real estate owned, net		1,870		Discounted appraised value		Selling Cost		3% - 13% (4%)
						Lack of Marketability		10% - 20% (12%)

The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2014:

							Range
	Balance as of		Valuation		Unobservable		(Weighted
(Dollars in thousands)	December 31, 2014		Technique		Input		Average)
Impaired Loans, net	$	1,958		Discounted appraised value		Selling Cost		10% - 20% (10%)
						Lack of Marketability		25% - 75% (53%)
Other real estate owned, net		2,791		Discounted appraised value		Selling Cost		3% - 13% (5%)
						Lack of Marketability		7% - 20% (11%)

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions.

					Fair Value Measurements at December 31, 2015 Using
(Dollars in thousands)	Balance as of		Fair Value as of
Description	December 31, 2015		December 31, 2015		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	4,969	$	4,969	$	4,969	$	—	$	—
Interest-bearing deposits		15,330		15,330		15,330		—		—
Federal funds sold		271		271		271		—		—
Securities available-for-sale		59,825		59,825		1,216		54,416		4,193
Restricted securities		2,731		2,731		—		—		2,731
Loans, net		343,323		347,500		—		—		347,500
Loans held for sale		270		270		—		—		270
Accrued interest receivable		1,318		1,318		—		1,318		—
Mortgage servicing rights		658		658		—		—		658
Financial Liabilities:
Non-interest-bearing liabilities	$	65,842	$	65,842	$	65,842	$	—	$	—
Savings and other interest-bearing deposits		166,628		166,628		—		166,628		—
Time deposits		127,388		127,433		—		—		127,433
Securities sold under repurchase agreements		7,161		7,161		—		7,161		—
FHLB advances		40,000		40,855		—		40,855		—
Subordinated debt		6,844		7,000		—		—		7,000
Accrued interest payable		318		318		—		318		—
					Fair Value Measurements at December 31, 2014 Using
(Dollars in thousands)	Balance as of		Fair Value as of
Description	December 31, 2014		December 31, 2014		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	6,181	$	6,181	$	6,181	$	—	$	—
Interest-bearing deposits		14,784		14,784		14,784		—		—
Federal funds sold		119		119		119		—		—
Securities available-for-sale		42,604		42,604		845		41,759		—
Restricted securities		2,430		2,430		—		—		2,430
Loans, net		295,242		300,481		—		—		300,481
Accrued interest receivable		1,197		1,197		—		1,197		—
Mortgage servicing rights		596		596		—		—		596
Financial Liabilities:
Non-interest-bearing liabilities	$	63,308	$	63,308	$	63,308	$	—	$	—
Savings and other interest-bearing deposits		122,502		122,502		—		122,502		—
Time deposits		121,775		122,662		—		—		122,662
Securities sold under repurchase agreements		6,012		6,012		—		6,012		—
FHLB advances		35,000		35,951		—		35,951		—
Accrued interest payable		149		149		—		149		—