Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Assets Measured at Fair Value on Recurring and Nonrecurring Basis

The table below presents the balances of assets measured at fair value on a recurring and nonrecurring basis as of March 31, 2014 and December 31, 2013. The Company had no liabilities measured at fair value as of March 31, 2014 or December 31, 2013.

	Carrying Value
(In thousands)	Level 1		Level 2		Level 3		Total
March 31, 2014
Assets Measured on a Recurring Basis
Securities available for sale:
Agency mortgage-backed securities	$	0	$	21,817	$	0	$	21,817
Agency CMO		0		19,087		0		19,087
Agency notes and bonds		0		29,502		0		29,502
Municipal obligations		0		36,046		0		36,046
Mutual funds		2,141		0		0		2,141
Total securities available for sale	$	2,141	$	106,452	$	0	$	108,593
Assets Measured on a Nonrecurring Basis
Impaired loans:
Residential real estate	$	0	$	0	$	1,568	$	1,568
Land		0		0		118		118
Construction		0		0		0		0
Commercial real estate		0		0		2,596		2,596
Commercial business		0		0		639		639
Home equity and second mortgage		0		0		206		206
Total impaired loans	$	0	$	0	$	5,127	$	5,127
Loans held for sale	$	0	$	511	$	0	$	511
Foreclosed real estate:
Residential real estate	$	0	$	0	$	249	$	249
Total foreclosed real estate	$	0	$	0	$	249	$	249
December 31, 2013
Assets Measured on a Recurring Basis
Securities available for sale:
Agency mortgage-backed securities	$	0	$	18,369	$	0	$	18,369
Agency CMO		0		20,241		0		20,241
Agency notes and bonds		0		30,914		0		30,914
Municipal obligations		0		36,040		0		36,040
Mutual funds		3,198		0		0		3,198
Total securities available for sale	$	3,198	$	105,564	$	0	$	108,762
Assets Measured on a Nonrecurring Basis
Impaired loans:
Residential real estate	$	0	$	0	$	1,928	$	1,928
Land		0		0		120		120
Construction		0		0		0		0
Commercial real estate		0		0		2,441		2,441
Commercial business		0		0		639		639
Home equity and second mortgage		0		0		263		263
Total impaired loans	$	0	$	0	$	5,391	$	5,391
Loans held for sale	$	0	$	1,611	$	0	$	1,611
Foreclosed real estate:
Residential real estate	$	0	$	0	$	466	$	466
Total foreclosed real estate	$	0	$	0	$	466	$	466

Carrying Value and Estimated Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments are as follows:

	Carrying		Fair		Fair Vale Measurements Using
(In thousands)	Value		Value		Level 1		Level 2		Level 3
March 31, 2014:
Financial assets:
Cash and cash equivalents	$	18,888	$	18,888	$	18,888	$	0	$	0
Interest-bearing time deposits		4,425		4,425		0		4,425		0
Securities available for sale		108,593		108,593		2,141		106,452		0
Securities held to maturity		8		8		0		8		0
Loans held for sale		511		520		0		520		0
Loans, net		287,224		287,522		0		0		287,522
FHLB stock		2,820		2,820		0		2,820		0
Accrued interest receivable		1,598		1,598		0		1,598		0
Cost method investment
(included in other assets)		540		540		0		540		0
Financial liabilities:
Deposits		383,088		383,019		0		0		383,019
Retail repurchase agreements		8,832		8,832		0		8,832		0
Accrued interest payable		167		167		0		167		0
December 31, 2013:
Financial assets:
Cash and cash equivalents	$	11,136	$	11,136	$	11,136	$	0	$	0
Interest-bearing time deposits		4,425		4,458		0		4,458		0
Securities available for sale		108,762		108,762		3,198		105,564		0
Securities held to maturity		9		9		0		9		0
Loans held for sale		1,611		1,644		0		1,644		0
Loans, net		288,506		287,753		0		0		287,753
FHLB stock		2,820		2,820		0		2,820		0
Accrued interest receivable		1,716		1,716		0		1,716		0
Cost method investment
(included in other assets)		540		540		0		540		0
Financial liabilities:
Deposits		373,830		373,883		0		0		373,883
Retail repurchase agreements		9,310		9,310		0		9,310		0
Advances from FHLB		5,500		5,500		0		5,500		0
Accrued interest payable		192		192		0		192		0