Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Measurement [Abstract]

Assets Measured at Fair Value on a Recurring Basis

			Fair value measurements at June 30, 2016 using:
(Dollars in thousands)	Total carrying value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Assets:	June 30, 2016		(Level 1)		(Level 2)		(Level 3)
U.S. Treasury and U.S. government agencies	$	44,875	$	-	$	44,875	$	-
Mortgage-backed U.S. government agencies		26,377		-		26,377		-
State and political subdivision obligations		92,838		-		92,838		-
Equity securities		3,252		1,088		2,164		-
	$	167,342	$	1,088	$	166,254	$	-

			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

			Fair value measurements at June 30, 2016 using:
(Dollars in thousands)	Total carrying value at		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
Assets:	June 30, 2016		(Level 1)		(Level 2)		(Level 3)
Impaired Loans	$	2,415	$	-	$	-	$	2,415
Foreclosed Assets Held for Sale		474		-		-		474
Mortgage Servicing Rights		152		-		-		152

			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
June 30, 2016	Fair Value Estimate		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired Loans	$	2,415	Appraisal of collateral (a)	Appraisal adjustments (b)	10% - 60%	30%
Foreclosed Assets Held for Sale		474	Appraisal of collateral (a), (c)	Appraisal adjustments (b)	17% - 31%	25%
Mortgage Servicing Rights		152	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 June 30, 2016 and December 31, 2015.

(Dollars in thousands)	June 30, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Financial assets:
Cash and cash equivalents	$	40,960	$	40,960	$	13,284	$	13,284
Interest-bearing time balances with other financial institutions		987		987		4,317		4,317
Investment securities		167,342		167,342		135,721		135,721
Net loans and leases		762,241		778,031		733,023		738,773
Restricted investment in bank stocks		2,643		2,643		4,266		4,266
Accrued interest receivable		3,943		3,943		3,813		3,813
Mortgage servicing rights		152		152		174		174
Financial liabilities:
Deposits	$	893,440	$	895,257	$	777,043	$	777,320
Short-term borrowings		-		-		31,596		31,596
Long-term debt		30,194		30,093		40,305		39,626
Subordinated debt		7,409		7,409		7,414		7,414
Accrued interest payable		698		698		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
June 30, 2016	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial instruments - assets
Net loans and leases	$	762,241	$	778,031	$	-	$	-	$	778,031
Financial instruments - liabilities
Deposits	$	893,440	$	895,257	$	-	$	895,257	$	-
Long-term debt		30,194		30,093		-		30,093		-

					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		-