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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2016
Fair Value Measurement [Abstract]  
Assets Measured at Fair Value on a Recurring Basis



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

Fair value measurements at March 31, 2016 using:

(Dollars in thousands)

 

Total carrying value at

 

Quoted prices in active markets

 

Significant other observable inputs

 

Significant unobservable inputs

Assets:

 

March 31, 2016

 

(Level 1)

 

(Level 2)

 

(Level 3)

U.S. Treasury and U.S. government agencies

 

$

 27,347 

 

$

 -

 

$

 27,347 

 

$

 -

Mortgage-backed U.S. government agencies

 

 

 49,711 

 

 

 -

 

 

 49,711 

 

 

 -

State and political subdivision obligations

 

 

 81,653 

 

 

 -

 

 

 81,653 

 

 

 -

Equity securities

 

 

 3,199 

 

 

 1,142 

 

 

 2,057 

 

 

 -



 

$

 161,910 

 

$

 1,142 

 

$

 160,768 

 

$

 -







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

Fair value measurements at December 31, 2015 using:

(Dollars in thousands)

 

Total carrying value at

 

Quoted prices in active markets

 

Significant other observable inputs

 

Significant unobservable inputs

Assets:

 

December 31, 2015

 

(Level 1)

 

(Level 2)

 

(Level 3)

U.S. Treasury and U.S. government agencies

 

$

 26,990 

 

$

 -

 

$

 26,990 

 

$

 -

Mortgage-backed U.S. government agencies

 

 

 38,804 

 

 

 -

 

 

 38,804 

 

 

 -

State and political subdivision obligations

 

 

 66,617 

 

 

 -

 

 

 66,617 

 

 

 -

Equity securities

 

 

 3,310 

 

 

 1,240 

 

 

 2,070 

 

 

 -



 

$

 135,721 

 

$

 1,240 

 

$

 134,481 

 

$

 -



Fair Value Measurements, Nonrecurring

Certain The following tables illustrate the assets measured at fair value on a nonrecurring basis segregated by hierarchy fair value levels. 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

Fair value measurements at March 31, 2016 using:

(Dollars in thousands)

 

Total carrying value at

 

Quoted prices in active markets

 

Significant other observable inputs

 

Significant unobservable inputs

Assets:

 

March 31, 2016

 

(Level 1)

 

(Level 2)

 

(Level 3)

Impaired Loans

 

$

 1,958 

 

$

 -

 

$

 -

 

$

 1,958 

Foreclosed Assets Held for Sale

 

 

 516 

 

 

 -

 

 

 -

 

 

 516 

Mortgage Servicing Rights

 

 

 162 

 

 

 -

 

 

 -

 

 

 162 





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

Fair value measurements at December 31, 2015 using:

(Dollars in thousands)

 

Total carrying value at

 

Quoted prices in active markets

 

Significant other observable inputs

 

Significant unobservable inputs

Assets:

 

December 31, 2015

 

(Level 1)

 

(Level 2)

 

(Level 3)

Impaired Loans

 

$

 2,088 

 

$

 -

 

$

 -

 

$

 2,088 

Foreclosed Assets Held for Sale

 

 

 453 

 

 

 -

 

 

 -

 

 

 453 

Mortgage Servicing Rights

 

 

 174 

 

 

 -

 

 

 -

 

 

 174 



Fair Value Inputs, Assets, Quantitative Information



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Quantitative Information about Level 3 Fair Value Measurements

March 31, 2016

 

Fair Value Estimate

 

Valuation Technique

 

Unobservable Input

 

Range

 

Weighted Average

Impaired Loans

 

$

 1,958 

 

Appraisal of collateral (a)

 

Appraisal adjustments (b)

 

10% - 60% 

 

30%

Foreclosed Assets Held for Sale

 

 

 516 

 

Appraisal of collateral (a), (c)

 

Appraisal adjustments (b)

 

17% - 31% 

 

27%

Mortgage Servicing Rights

 

 

 162 

 

Multiple of annual service fee

 

Estimated prepayment speed based on rate and term

 

210% - 400% 

 

360%





 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Quantitative Information about Level 3 Fair Value Measurements

December 31, 2015

 

Fair Value Estimate

 

Valuation Technique

 

Unobservable Input

 

Range

 

Weighted Average

Impaired Loans

 

$

 2,088 

 

Appraisal of collateral (a)

 

Appraisal adjustments (b)

 

11% - 60% 

 

30%

Foreclosed Assets Held for Sale

 

 

 453 

 

Appraisal of collateral (a), (c)

 

Appraisal adjustments (b)

 

17% - 27% 

 

26%

Mortgage Servicing Rights

 

 

 174 

 

Multiple of annual service fee

 

Estimated prepayment speed based on rate and term

 

210% - 400% 

 

360%





(a)

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



(b)

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.



(c)

Includes qualitative adjustments by management and estimated liquidation expenses.
Fair Value, by Balance Sheet Grouping

The following table summarizes the carrying value and fair value of financial instruments at March 31, 2016 and December 31, 2015.







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

March 31, 2016

 

December 31, 2015



Carrying

 

Fair

 

Carrying

 

Fair



Value

 

Value

 

Value

 

Value

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

 13,322 

 

$

 13,322 

 

$

 13,284 

 

$

 13,284 

Interest-bearing time balances with other financial institutions

 

 2,332 

 

 

 2,332 

 

 

 4,317 

 

 

 4,317 

Investment securities

 

 161,910 

 

 

 161,910 

 

 

 135,721 

 

 

 135,721 

Net loans and leases

 

 746,452 

 

 

 750,824 

 

 

 733,023 

 

 

 738,773 

Restricted investment in bank stocks

 

 2,871 

 

 

 2,871 

 

 

 4,266 

 

 

 4,266 

Accrued interest receivable

 

 3,919 

 

 

 3,919 

 

 

 3,813 

 

 

 3,813 

Mortgage servicing rights

 

 162 

 

 

 162 

 

 

 174 

 

 

 174 



 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

 832,581 

 

$

 833,705 

 

$

 777,043 

 

$

 777,320 

Short-term borrowings

 

 -

 

 

 -

 

 

 31,596 

 

 

 31,596 

Long-term debt

 

 40,250 

 

 

 39,917 

 

 

 40,305 

 

 

 39,626 

Subordinated debt

 

 7,407 

 

 

 7,407 

 

 

 7,414 

 

 

 7,414 

Accrued interest payable

 

 586 

 

 

 586 

 

 

 390 

 

 

 390 



 

 

 

 

 

 

 

 

 

 

 

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

March 31, 2016

 

Amount

 

Fair Value

 

(Level 1)

 

(Level 2)

 

(Level 3)

Financial instruments - assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans and leases

 

$

 746,452 

 

$

 750,824 

 

$

 -

 

$

 -

 

$

 750,824 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial instruments - liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

 832,581 

 

$

 833,705 

 

$

 -

 

$

 833,705 

 

$

 -

Long-term debt

 

 

 40,250 

 

 

 39,917 

 

 

 -

 

 

 39,917 

 

 

 -









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

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, 2015

 

Amount

 

Fair Value

 

(Level 1)

 

(Level 2)

 

(Level 3)

Financial instruments - assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loans and leases

 

$

 733,023 

 

$

 738,773 

 

$

 -

 

$

 -

 

$

 738,773 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial instruments - liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

 777,043 

 

$

 777,320 

 

$

 -

 

$

 777,320 

 

$

 -

Long-term debt

 

 

 40,305 

 

 

 39,626 

 

 

 -

 

 

 39,626 

 

 

 -