Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Values of Financial Instruments [Abstract]

Fair Value Measurements of Assets Measured at Fair Value on Recurring Basis

The following table presents the fair value measurements of assets measured on a recurring basis and level within the ASC 820 fair value hierarchy.:

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
September 30, 2015
Mortgage-backed securities	$	107,236	$	-	$	107,236	$	-
Collateralized mortgage obligations		87,056		-		87,056		-
Municipal obligations		52,024		-		52,024		-
Corporate obligations		20,499		-		17,977		2,522
Available-for-sale securities	$	266,815	$	-	$	264,293	$	2,522

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
December 31, 2014
Mortgage-backed securities	$	113,290	$	-	$	113,290	$	-
Collateralized mortgage obligations		97,759		-		97,759		-
Federal agencies		4		-		4		-
Municipal obligations		29,252		-		29,252		-
Corporate obligations		20,501		-		17,979		2,522
Available-for-sale securities	$	260,806	$	-	$	258,284	$	2,522

Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs

The following is a reconciliation of the beginning and ending balances for the three and nine months ended September 30, 2015 and 2014 of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs:

	Three Months Ended
	September 30,
		2015		2014
Beginning balance	$	2,522	$	3,738
Total realized and unrealized gains (losses)
Included in other comprehensive income (loss)		-		(4)
Ending balance	$	2,522	$	3,734
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	0	$	0

	Nine Months Ended
	September 30,
		2015		2014
Beginning balance	$	2,522	$	3,336
Total realized and unrealized gains (losses)
Included in net income		-		56
Included in other comprehensive income (loss)		-		916
Purchases, issuances and settlements		-		(574)
Ending balance	$	2,522	$	3,734
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	0	$	0

Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the fair value measurement of assets measured on a nonrecurring basis and the level within the ASC 820 fair value hierarchy. 

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
September 30, 2015
Impaired loans	$	720	$	-	$	-	$	720
Other real estate owned		57		-		-		57

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
December 31, 2014
Other real estate owned	$	1,280	$	-	$	-	$	1,280

Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

September 30, 2015	Fair Value		Valuation Technique	Unobservable Inputs	Range
Trust Preferred Securities	$	2,522	Discounted cash flow	Discount rate	8.0	%
				Constant prepayment rate	2.0	%
				Cumulative projected prepayments	40.0	%
				Probability of default	1.7 - 1.8	%
				Projected cures given deferral	0 - 15.0	%
				Loss severity	34.2 - 39.8	%
Impaired loans (collateral dependent)	$	720	Third party valuations	Discount to reflect realizable value	20.0 - 50.0	%
Other real estate owned	$	57	Third party valuations	Discount to reflect realizable value less estimated selling costs	2.9 - 58.1	%

December 31, 2014	Fair Value		Valuation Technique	Unobservable Inputs	Range
Trust Preferred Securities	$	2,522	Discounted cash flow	Discount rate	8.0	%
				Constant prepayment rate	2.0	%
				Cumulative projected prepayments	40.0	%
				Probability of default	1.7 - 1.8	%
				Projected cures given deferral	0 - 15.0	%
				Loss severity	34.2 - 39.8	%
Other real estate owned	$	1,280	Third party valuations	Discount to reflect realizable value less estimated selling costs	24.4 - 36.7	%

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated balance sheets as of the dates noted below are as follows: 

					Fair Value Measurements Using
September 30, 2015		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	18,643	$	18,643	$	18,643	$	-	$	-
Loans held for sale		6,052		6,157		-		6,157		-
Loans, net		1,044,978		1,030,496		-		-		1,030,496
FHLB stock		9,810		9,810		-		9,810		-
Interest receivable		3,886		3,886		-		3,886		-
Liabilities
Deposits		1,079,586		1,081,240		716,802		-		364,438
FHLB advances		216,217		217,091		-		217,091		-
Other borrowings		9,637		9,675		-		9,675		-
Interest payable		223		223		-		223		-

					Fair Value Measurements Using
December 31, 2014		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	29,575	$	29,575	$	29,575	$	-	$	-
Loans held for sale		6,140		6,220		-		6,220		-
Loans, net		1,003,518		1,006,233		-		-		1,006,233
FHLB stock		11,964		11,964		-		11,964		-
Interest receivable		3,730		3,730		-		3,730		-
Liabilities
Deposits		1,079,320		1,050,295		648,314		-		401,981
FHLB advances		192,442		191,995		-		191,995		-
Other borrowings		10,174		10,283		-		10,283		-
Interest payable		223		223		-		223		-