Fair Value Disclosure

9 Months Ended

Sep. 30, 2015

Fair Value Disclosure [Abstract]

Fair Value Disclosure

(7) Fair Value Disclosure

Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are generally based upon observable and unobservable inputs. Observable inputs are based on market data from independent sources, while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. All assets and liabilities that are carried at fair value are classified and disclosed in one of the following categories:

Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price for an identical asset or liability in an active market provides the most reliable fair value measurement because it is directly observable to the market.

Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs are observable for an asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Securities available-for-sale: The fair value of securities available-for-sale is determined by obtaining quoted prices on nationally recognized security exchanges.

Assets measured at fair value on a recurring basis as of September 30, 2015, presented in accordance with this guidance, are as follows.

	As of September 30, 2015
	Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Debt securities:
United States government obligations and authorities	$	40,833	$	25,161	$	-	$	65,994
Obligations of states and political subdivisions		-		108,597		-		108,597
Corporate		-		155,324		-		155,324
International		-		12,000		-		12,000
		40,833		301,082		-		341,915
Equity securities:
Common stocks		38,086		-		-		38,086
		38,086		-		-		38,086
Total debt and equity securities	$	78,919	$	301,082	$	-	$	380,001

Assets measured at fair value on a recurring basis as of December 31, 2014, presented in accordance with this guidance, are as follows.

	As of December 31, 2014
	Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Debt securities:
United States government obligations and authorities	$	46,002	$	16,321	$	-	$	62,323
Obligations of states and political subdivisions		-		91,614		-		91,614
Corporate		-		119,024		-		119,024
International		-		11,138		-		11,138
		46,002		238,097		-		284,099
Equity securities:
Common stocks		39,247		-		-		39,247
		39,247		-		-		39,247
Total debt and equity securities	$	85,249	$	238,097	$	-	$	323,346