Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Balances of Assets Measured at Fair Value on a Recurring Basis

The following tables present the balances of assets measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (in thousands).


			Fair Value Measurements at March 31, 2017
Description	Balance as of March 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Securities available for sale
U.S. agency and mortgage-backed securities	$	77,227	$	—	$	77,227	$	—
Obligations of states and political subdivisions		14,669		—		14,669		—
Corporate equity securities		11		11		—		—

	$	91,907	$	11	$	91,896	$	—


			Fair Value Measurements at December 31, 2016
Description	Balance as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Securities available for sale
U.S. agency and mortgage-backed securities	$	80,171	$	—	$	80,171	$	—
Obligations of states and political subdivisions		14,620		—		14,620		—
Corporate equity securities		11		11		—		—

	$	94,802	$	11	$	94,791	$	—

Summary of Assets Measured at Fair Value on a Nonrecurring Basis

The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis during the periods (dollars in thousands):


			Fair Value Measurements at March 31, 2017
Description	Balance as of March 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Impaired loans, net	$	54	$	—	$	—	$	54
Other real estate owned		250		—		—		250


			Fair Value Measurements at December 31, 2016
Description	Balance as of December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Impaired loans, net	$	116	$	—	$	—	$	116
Other real estate owned		250		—		—		250

Quantitative Information about Level 3 Fair Value Measurements


	Quantitative information about Level 3 Fair Value Measurements for March 31, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)

Impaired loans, net	$	54	Property appraisals	Selling cost		10	%

Other real estate owned	$	250	Property appraisals	Selling cost		0	%

	Quantitative information about Level 3 Fair Value Measurements for December 31, 2016
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)

Impaired loans, net	$	116	Property appraisals	Selling cost		10	%

Other real estate owned	$	250	Property appraisals	Selling cost		0	%

Carrying Values and Estimated Fair Values of Company's Financial Instruments

The carrying values and estimated fair values of the Company’s financial instruments at March 31, 2017 and December 31, 2016 are as follows (in thousands):


	Fair Value Measurements at March 31, 2017 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value

Financial Assets
Cash and short-term investments	$	45,839	$	45,839	$	—	$	—	$	45,839
Securities available for sale		91,907		11		91,896		—		91,907
Securities held to maturity		51,999		—		50,124		1,484		51,608
Restricted securities		1,570		—		1,570		—		1,570
Loans, net		492,319		—		—		492,578		492,578
Bank owned life insurance		14,013		—		14,013		—		14,013
Accrued interest receivable		1,753		—		1,753		—		1,753

Financial Liabilities
Deposits	$	654,769	$	—	$	527,921	$	125,608	$	653,529
Subordinated debt		4,934		—		—		4,709		4,709
Junior subordinated debt		9,279		—		—		9,175		9,175
Accrued interest payable		88		—		88		—		88


	Fair Value Measurements at December 31, 2016 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value

Financial Assets
Cash and short-term investments	$	41,092	$	41,092	$	—	$	—	$	41,092
Securities available for sale		94,802		11		94,791		—		94,802
Securities held to maturity		53,398		—		51,223		1,486		52,709
Restricted securities		1,548		—		1,548		—		1,548
Loans held for sale		337		—		337		—		337
Loans, net		480,746		—		—		481,475		481,475
Bank owned life insurance		13,928		—		13,928		—		13,928
Accrued interest receivable		1,746		—		1,746		—		1,746

Financial Liabilities
Deposits	$	645,570	$	—	$	517,143	$	127,179	$	644,322
Subordinated debt		4,930		—		—		4,715		4,715
Junior subordinated debt		9,279		—		—		9,075		9,075
Accrued interest payable		95		—		95		—		95