Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Measurement [Abstract]

Fair Value Measurements by Level of Valuation Inputs

The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2014 and December 31, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands). There were no transfers of assets between fair value Level 1 and Level 2 during the year ended December 31, 2014.

				(Level 1)		(Level 2)		(Level 3)
				Quoted Prices in		Significant		Significant
				Active Markets		Other		Other
		December 31,		for Identical		Observable		Unobservable
		2014		Assets		Inputs		Inputs
Measured at fair value on a recurring basis:
Debt securities available-for-sale:
Obligations of U.S. Government agencies and corporations	$	50,101	$	-	$	50,101	$	-
Obligations of state and political subdivisions		35,873		-		35,873		-
Mortgage-backed securities		55,429		-		55,429		-
Equity securities available-for-sale		1,500		1,500		-		-
Measured at fair value on a non-recurring basis:
Impaired loans		3,370		-		-		3,370
Mortgage servicing rights		193		-		-		193
				(Level 1)		(Level 2)		(Level 3)
				Quoted Prices in		Significant		Significant
				Active Markets		Other		Other
		December 31,		for Identical		Observable		Unobservable
		2013		Assets		Inputs		Inputs
Measured at fair value on a recurring basis:
Debt securities available-for-sale:
Obligations of U.S. Government agencies and corporations	$	78,278	$	-	$	78,278	$	-
Obligations of state and political subdivisions		41,932		-		41,932		-
Mortgage-backed securities		4,469		-		4,469		-
Equity securities available-for-sale		1,367		1,367		-		-
Measured at fair value on a non-recurring basis:
Impaired loans		3,300		-		-		3,300
Other real estate owned		50		-		-		50
Mortgage servicing rights		167		-		-		167

Quantitative Information for Assets Measured at Fair Value

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Level 3 inputs have been used to determine fair value:

December 31, 2014	Fair Value Estimate		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	3,370	Appraisal of collateral (1)	Appraisal and liquidation adjustments (2)	(7)% - (15)%	(11.2)%
Mortgage servicing rights		193	Multiple of annual servicing fee	Estimated pre-payment speed, based on rate and term	300% - 400%	360%

December 31, 2013	Fair Value Estimate		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	3,300	Appraisal of collateral (1)	Appraisal and liquidation adjustments (2)	(7)% - (10)%	(9.0)%
Other real estate owned		50	Appraisal of collateral (1)	Appraisal and liquidation adjustments (2)	0%	0%
Mortgage servicing rights		167	Multiple of annual servicing fee	Estimated pre-payment speed, based on rate and term	300% - 400%	326%

(1) Fair value is generally determined through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments are as follows (in thousands):

Financial Instruments
(in thousands)
		December 31, 2014				December 31, 2013
		Carrying		Fair		Carrying		Fair
Financial assets:		Value		Value		Value		Value
Cash and due from banks	$	6,757	$	6,757	$	8,570	$	8,570
Interest bearing deposits with banks		10		10		43		43
Interest bearing time deposits with banks		-		-		249		250
Securities		142,903		142,903		126,046		126,046
Restricted investment in FHLB stock		2,726		2,726		1,967		1,967
Loans, net of allowance for loan losses		292,521		294,083		275,511		282,226
Mortgage servicing rights		193		193		167		167
Accrued interest receivable		1,491		1,491		1,529		1,529
Financial liabilities:
Non-interest bearing deposits		77,697		77,697		74,611		74,611
Interest bearing deposits		303,187		305,635		305,034		308,414
Securities sold under agreements to repurchase		4,594		4,594		5,397		5,397
Short-term borrowings		15,950		15,950		8,400		8,400
Long-term debt		22,500		22,464		-		-
Other interest bearing liabilities		1,412		1,416		1,356		1,358
Accrued interest payable		301		301		287		287
Off-balance sheet financial instruments:
Commitments to extend credit		-		-		-		-
Letters of credit		-		-		-		-

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments not previously disclosed as of December 31, 2014 and December 31, 2013. This table excludes financial instruments for which the carrying amount approximates fair value.

			(Level 1)	(Level 2)	(Level 3)
			Quoted Prices in
			Active Markets	Significant	Significant
			for Identical	Other	Other
December 31, 2014	Carrying Amount	Fair Value	Assets or Liabilities	Observable Inputs	Unobservable Inputs
Financial instruments - Assets
Loans, net of allowance for loan losses	$        292,521	$      294,083	$                      -	$                  -	$          294,083
Financial instruments - Liabilities
Interest bearing deposits	303,187	305,635	-	305,635	-
Long-term debt	22,500	22,464	-	22,464	-
Other interest bearing liabilities	1,412	1,416	-	1,416	-

			(Level 1)	(Level 2)	(Level 3)
			Quoted Prices in
			Active Markets	Significant	Significant
			for Identical	Other	Other
December 31, 2013	Carrying Amount	Fair Value	Assets or Liabilities	Observable Inputs	Unobservable Inputs
Financial instruments - Assets
Interest bearing time deposits with banks	$              249	$            250	$                      -	$              250	$                    -
Loans, net of allowance for loan losses	275,511	282,226	-	-	282,226
Financial instruments - Liabilities
Interest bearing deposits	305,034	308,414	-	308,414	-
Other interest bearing liabilities	1,356	1,358	-	1,358	-