Fair Values of Financial Instruments and Interest Rate Risk (Tables)
|
12 Months Ended |
Dec. 31, 2015 |
Fair Value Disclosures [Abstract] |
|
Comparison of Carrying Amounts and Estimated Fair Value of Financial Instruments |
The following table reflects a comparison of carrying amounts and
the estimated fair value of the financial instruments as of
December 31, 2015 and December 31, 2014:
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying |
|
|
Estimated |
|
|
|
|
|
|
|
|
|
|
|
|
Value |
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
|
(dollars in
thousands) |
|
|
|
|
FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
68,933 |
|
|
$ |
68,973 |
|
|
$ |
65,198 |
|
|
$ |
3,775 |
|
|
$ |
— |
|
Securities available for sale
|
|
|
89,258 |
|
|
|
89,258 |
|
|
|
4,012 |
|
|
|
85,246 |
|
|
|
— |
|
Securities held to maturity
|
|
|
11,242 |
|
|
|
11,242 |
|
|
|
— |
|
|
|
11,242 |
|
|
|
— |
|
Loans held for investment, net
|
|
|
317,248 |
|
|
|
313,649 |
|
|
|
— |
|
|
|
— |
|
|
|
313,649 |
|
Loans held for sale
|
|
|
5,922 |
|
|
|
5,922 |
|
|
|
— |
|
|
|
5,922 |
|
|
|
— |
|
Restricted stock
|
|
|
1,040 |
|
|
|
1,040 |
|
|
|
1,040 |
|
|
|
— |
|
|
|
— |
|
Accrued interest receivable
|
|
|
1,564 |
|
|
|
1,564 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
FINANCIAL LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$ |
467,733 |
|
|
$ |
442,619 |
|
|
$ |
— |
|
|
$ |
442,619 |
|
|
$ |
— |
|
Short-term borrowings
|
|
|
5,758 |
|
|
|
5,758 |
|
|
|
— |
|
|
|
5,758 |
|
|
|
— |
|
Long-term borrowings
|
|
|
13 |
|
|
|
13 |
|
|
|
— |
|
|
|
13 |
|
|
|
|
|
Junior subordinated debt
|
|
|
9,534 |
|
|
|
9,688 |
|
|
|
— |
|
|
|
— |
|
|
|
9,688 |
|
Accrued interest payable
|
|
|
168 |
|
|
|
168 |
|
|
|
— |
|
|
|
— |
|
|
|
168 |
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying |
|
|
Estimated |
|
|
|
|
|
|
|
|
|
|
|
|
Value |
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
|
(dollars in
thousands) |
|
|
|
|
FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
50,791 |
|
|
$ |
50,826 |
|
|
$ |
47,605 |
|
|
$ |
3,221 |
|
|
$ |
— |
|
Securities available for sale
|
|
|
112,824 |
|
|
|
112,824 |
|
|
|
19,386 |
|
|
|
93,438 |
|
|
|
— |
|
Securities held to maturity
|
|
|
5,496 |
|
|
|
5,450 |
|
|
|
2,053 |
|
|
|
3,397 |
|
|
|
— |
|
Loans held for investment, net
|
|
|
307,115 |
|
|
|
321,295 |
|
|
|
— |
|
|
|
— |
|
|
|
321,295 |
|
Loans held for sale
|
|
|
2,147 |
|
|
|
2,147 |
|
|
|
— |
|
|
|
2,147 |
|
|
|
|
|
Restricted stock
|
|
|
1,038 |
|
|
|
1,038 |
|
|
|
1,038 |
|
|
|
— |
|
|
|
— |
|
Accrued interest receivable
|
|
|
1,747 |
|
|
|
1,747 |
|
|
|
— |
|
|
|
— |
|
|
|
1,747 |
|
|
|
|
|
|
|
FINANCIAL LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$ |
456,435 |
|
|
$ |
442,655 |
|
|
$ |
— |
|
|
$ |
442,655 |
|
|
$ |
— |
|
Short-term borrowings
|
|
|
4,685 |
|
|
|
4,685 |
|
|
|
— |
|
|
|
4,685 |
|
|
|
— |
|
Long-term borrowings
|
|
|
24 |
|
|
|
24 |
|
|
|
— |
|
|
|
24 |
|
|
|
— |
|
Junior subordinated debt
|
|
|
9,534 |
|
|
|
9,703 |
|
|
|
— |
|
|
|
— |
|
|
|
9,703 |
|
Accrued interest payable
|
|
|
180 |
|
|
|
180 |
|
|
|
— |
|
|
|
— |
|
|
|
180 |
|
|
Fair Value Information for Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following table provides fair value information for assets and
liabilities measured at fair value on a recurring basis as of
December 31, 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
(dollars in
thousands) |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury
|
|
$ |
4,012 |
|
|
$ |
4,012 |
|
|
$ |
— |
|
|
$ |
— |
|
US Gov’t
|
|
|
36,070 |
|
|
|
— |
|
|
|
36,070 |
|
|
|
— |
|
Mortgage-backed securities and CMO’s
|
|
|
29,773 |
|
|
|
— |
|
|
|
29,773 |
|
|
|
— |
|
State and political subdivisions
|
|
|
14,039 |
|
|
|
— |
|
|
|
14,039 |
|
|
|
— |
|
Corporate bonds
|
|
|
5,364 |
|
|
|
— |
|
|
|
5,364 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value
|
|
$ |
89,258 |
|
|
$ |
4,012 |
|
|
$ |
85,246 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities at fair value
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014 |
|
|
|
(dollars in
thousands) |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury
|
|
$ |
19,386 |
|
|
$ |
19,386 |
|
|
$ |
— |
|
|
$ |
— |
|
US Gov’t
|
|
|
50,775 |
|
|
|
— |
|
|
|
50,775 |
|
|
|
— |
|
Mortgage-backed securities and CMO’s
|
|
|
27,572 |
|
|
|
— |
|
|
|
27,572 |
|
|
|
— |
|
State and political subdivisions
|
|
|
12,080 |
|
|
|
— |
|
|
|
12,080 |
|
|
|
— |
|
Corporate bonds
|
|
|
3,011 |
|
|
|
— |
|
|
|
3,011 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value
|
|
$ |
112,824 |
|
|
$ |
19,386 |
|
|
$ |
93,438 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities at fair value
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company may be required, from time to time, to measure certain
assets at fair value on a nonrecurring basis in accordance with
U.S. generally accepted accounting principles. These include assets
that are measured at the lower of cost or market that were
recognized at fair value below cost at the end of the period.
Assets measured at fair value on a nonrecurring basis are included
in the table below as of December 31, 2015 and
December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
(dollars in
thousands) |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Impaired loans
|
|
$ |
3,108 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,108 |
|
Other real estate owned
|
|
|
2,909 |
|
|
|
— |
|
|
|
— |
|
|
|
2,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value
|
|
$ |
6,017 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities at fair value
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014 |
|
|
|
(dollars in
thousands) |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Impaired loans
|
|
$ |
1,854 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,854 |
|
Other real estate owned
|
|
|
3,290 |
|
|
|
— |
|
|
|
— |
|
|
|
3,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value
|
|
$ |
5,144 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities at fair value
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Measured at Fair Value on Nonrecurring Basis |
Assets measured at fair value on a nonrecurring basis are included
in the table below as of December 31, 2015 and
December 31, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
(dollars in
thousands) |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Impaired loans
|
|
$ |
3,108 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,108 |
|
Other real estate owned
|
|
|
2,909 |
|
|
|
— |
|
|
|
— |
|
|
|
2,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value
|
|
$ |
6,017 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities at fair value
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014 |
|
|
|
(dollars in
thousands) |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Impaired loans
|
|
$ |
1,854 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,854 |
|
Other real estate owned
|
|
|
3,290 |
|
|
|
— |
|
|
|
— |
|
|
|
3,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at fair value
|
|
$ |
5,144 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities at fair value
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements |
Quantitative Information about Level 3 Fair Value Measurements
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General |
|
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range |
|
Nonrecurring measurements:
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
Discounted appraisals |
|
Expected loss rates |
|
|
0 – 25 |
% |
|
|
Discounted cash flows |
|
Discount rates |
|
|
4%-8.75 |
% |
|
|
|
|
OREO
|
|
Discounted appraisals |
|
Collateral discounts and Estimated costs to sell
|
|
|
0 – 10 |
% |
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General |
|
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range |
|
Nonrecurring measurements:
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
Discounted appraisals |
|
Expected loss rates |
|
|
0 – 25 |
% |
|
|
Discounted cash flows |
|
Discount rates |
|
|
4%-8.75 |
% |
|
|
|
|
OREO Estimated costs to sell
|
|
Discounted appraisals |
|
Collateral discounts and Estimated costs to sell
|
|
|
0 – 10 |
% |
|