Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Measurement [Abstract]

Assets Measured at Fair Value on a Recurring Basis

			Fair value measurements at September 30, 2015 using:
(Dollars in thousands)	Total carrying value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Assets:	September 30, 2015		(Level 1)		(Level 2)		(Level 3)
U.S. Treasury and U.S. government agencies	$	27,342	$	-	$	27,342	$	-
Mortgage-backed U.S. government agencies		36,189		-		36,189		-
State and political subdivision obligations		66,882		-		66,882		-
Equity securities		3,283		1,195		2,088		-
	$	133,696	$	1,195	$	132,501	$	-

			Fair value measurements at December 31, 2014 using:
(Dollars in thousands)	Total carrying value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Assets:	December 31, 2014		(Level 1)		(Level 2)		(Level 3)
U.S. Treasury and U.S. government agencies	$	27,066	$	-	$	27,066	$	-
Mortgage-backed U.S. government agencies		33,776		-		33,776		-
State and political subdivision obligations		79,171		-		79,171		-
Equity securities		1,621		561		1,060		-
	$	141,634	$	561	$	141,073	$	-

Fair Value Measurements, Nonrecurring

			Fair value measurements at September 30, 2015 using:
(Dollars in thousands)	Total carrying value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Assets:	September 30, 2015		(Level 1)		(Level 2)		(Level 3)
Impaired Loans	$	4,476	$	-	$	-	$	4,476
Foreclosed Assets Held for Sale		205		-		-		205
Mortgage Servicing Rights		182		-		-		182

			Fair value measurements at December 31, 2014 using:
(Dollars in thousands)	Total carrying value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Assets:	December 31, 2014		(Level 1)		(Level 2)		(Level 3)
Impaired Loans	$	6,664	$	-	$	-	$	6,664
Foreclosed Assets Held for Sale		142		-		-		142
Mortgage Servicing Rights		187		-		-		187

Fair Value Inputs, Assets, Quantitative Information

(Dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
September 30, 2015	Fair Value Estimate		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired Loans	$	4,476	Appraisal of collateral (1)	Appraisal adjustments (2)	10% - 50%	29%
Foreclosed Assets Held for Sale		205	Appraisal of collateral (1), (3)	Appraisal adjustments (2)	27% - 59%	33%
Mortgage Servicing Rights		182	Multiple of annual service fee	Estimated prepayment speed based on rate and term	240% - 400%	352%

(Dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2014	Fair Value Estimate		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired Loans	$	6,664	Appraisal of collateral (1)	Appraisal adjustments (2)	10% - 95%	32%
Foreclosed Assets Held for Sale		142	Appraisal of collateral (1), (3)	Appraisal adjustments (2)	15% - 40%	27%
Mortgage Servicing Rights		187	Multiple of annual service fee	Estimated prepayment speed based on rate and term	210% - 400%	353%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable.

(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.  Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

Fair Value, by Balance Sheet Grouping

(Dollars in thousands)	September 30, 2015				December 31, 2014
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Financial assets:
Cash and cash equivalents	$	19,234	$	19,234	$	9,882	$	9,882
Interest-bearing time balances with other financial institutions		5,313		5,313		5,772		5,772
Investment securities		133,696		133,696		141,634		141,634
Net loans and leases		712,101		720,133		564,817		572,487
Restricted investment in bank stocks		3,919		3,919		3,181		3,181
Accrued interest receivable		3,415		3,415		3,058		3,058
Mortgage servicing rights		171		171		187		187
Financial liabilities:
Deposits	$	775,150	$	776,679	$	637,922	$	639,226
Short-term borrowings		5,712		5,712		578		578
Long-term debt		51,363		50,581		52,961		52,514
Accrued interest payable		605		605		349		349
Off-balance sheet financial instruments:
Commitments to extend credit	$	-	$	-	$	-	$	-
Financial standby letters of credit		-		-		-		-

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

					Fair Value Measurements
					Quoted Prices
					in Active Markets				Significant
(Dollars in thousands)					for Identical Assets		Significant Other		Unobservable
	Carrying				or Liabilities		Observable Inputs		Inputs
September 30, 2015	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial instruments - assets
Net loans and leases	$	712,101	$	720,133	$	-	$	-	$	720,133
Financial instruments - liabilities
Deposits	$	775,150	$	776,679	$	-	$	776,679	$	-
Long-term debt		51,363		50,581		-		50,581		-

					Fair Value Measurements
					Quoted Prices
					in Active Markets				Significant
(Dollars in thousands)					for Identical Assets		Significant Other		Unobservable
	Carrying				or Liabilities		Observable Inputs		Inputs
December 31, 2014	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial instruments - assets
Net loans and leases	$	564,817	$	572,487	$	-	$	-	$	572,487
Financial instruments - liabilities
Deposits	$	637,922	$	639,226	$	-	$	639,226	$	-
Long-term debt		52,961		52,514		-		52,514		-