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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Estimated Fair Value of Financial Instruments
The estimated carrying and fair values of the Company’s financial instruments are as follows (in thousands):
 
 
 
September 30, 2013
 
 
Carrying
Amount
 
Fair Value
(In thousands)
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial assets:
 
 

 
 

 
 

 
 
 
 

Cash and due from banks
 
$
32,190

 
$
32,190

 
$
—

 
$
—

 
$
32,190

Interest-earning deposits in other banks
 
49,854

 
49,854

 
—

 
—

 
49,854

Federal funds sold
 
154

 
154

 
—

 
—

 
154

Available-for-sale investment securities
 
417,833

 
7,626

 
410,207

 
—

 
417,833

Loans, net
 
505,501

 
—

 
—

 
509,109

 
509,109

Federal Home Loan Bank stock
 
4,499

 
N/A

 
N/A

 
N/A

 
N/A

Accrued interest receivable
 
4,901

 
22

 
2,739

 
2,140

 
4,901

Financial liabilities:
 
 

 
 

 
 

 
 
 
 

Deposits
 
943,789

 
769,903

 
173,397

 
—

 
943,300

Junior subordinated deferrable interest debentures
 
5,155

 
—

 
—

 
2,603

 
2,603

Accrued interest payable
 
134

 
—

 
110

 
24

 
134


 
 
December 31, 2012
 
 
Carrying
Amount
 
Fair Value
(In thousands)
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial assets:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
22,405

 
$
22,405

 
$
—

 
$
—

 
$
22,405

Interest-earning deposits in other banks
 
30,123

 
30,123

 
—

 
—

 
30,123

Federal funds sold
 
428

 
428

 
—

 
—

 
428

Available-for-sale investment securities
 
393,965

 
7,948

 
386,017

 
—

 
393,965

Loans, net
 
385,185

 
—

 
—

 
388,834

 
388,834

Federal Home Loan Bank stock
 
3,850

 
N/A

 
N/A

 
N/A

 
N/A

Accrued interest receivable
 
4,267

 
22

 
2,395

 
1,850

 
4,267

Financial liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
751,432

 
614,556

 
137,401

 
—

 
751,957

Short-term borrowings
 
4,000

 
—

 
4,016

 
—

 
4,016

Junior subordinated deferrable interest debentures
 
5,155

 
—

 
—

 
2,990

 
2,990

Accrued interest payable
 
174

 
—

 
149

 
25

 
174
Fair Value of Assets on a Recurring Basis
The Company is required or permitted to record the following assets at fair value on a recurring basis under other accounting pronouncements as of September 30, 2013 (in thousands).
 
Description
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Available-for-sale securities
 
 

 
 

 
 

 
 

Debt Securities:
 
 

 
 

 
 

 
 

U.S. Government agencies
 
$
16,579

 
$
—

 
$
16,579

 
$
—

Obligations of states and political subdivisions
 
184,595

 
—

 
184,595

 
—

U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
 
203,361

 
—

 
203,361

 
—

Private label residential mortgage backed securities
 
5,672

 
—

 
5,672

 
—

Other equity securities
 
7,626

 
7,626

 
—

 
—

Total assets measured at fair value on a recurring basis
 
$
417,833

 
$
7,626

 
$
410,207

 
$
—

The Company is required or permitted to record the following assets at fair value on a recurring basis under other accounting pronouncements (in thousands).
 
Description
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Available-for-sale securities
 
 

 
 

 
 

 
 

Debt Securities:
 
 

 
 

 
 

 
 

U.S. Government agencies
 
$
9,454

 
$
—

 
$
9,454

 
$
—

Obligations of states and political subdivisions
 
161,678

 
—

 
161,678

 
—

U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
 
208,510

 
—

 
208,510

 
—

Private label residential mortgage backed securities
 
6,375

 
—

 
6,375

 
—

Other equity securities
 
7,948

 
7,948

 
—

 
—

Total assets measured at fair value on a recurring basis
 
$
393,965

 
$
7,948

 
$
386,017

 
$
—
Fair Value of Assets on a Non-recurring Basis
The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis.  These include assets and liabilities that are measured at the lower of cost or fair value that were recognized at fair value which was below cost at December 31, 2012 (in thousands).

Description
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Impaired loans:
 
 

 
 

 
 

 
 

Commercial:
 
 

 
 

 
 

 
 

Commercial and industrial
 
$
—

 
$
—

 
$
—

 
$
—

Agricultural production
 
—

 
—

 
—

 
—

Total commercial
 
—

 
—

 
—

 
—

Real estate:
 
 

 
 

 
 

 
 

Owner occupied
 
194

 
—

 
—

 
194

Real estate-construction and other land loans
 
4,863

 
—

 
—

 
4,863

Commercial real estate
 
—

 
—

 
—

 
—

Agricultural real estate
 
—

 
—

 
—

 
—

Other
 
—

 
—

 
—

 
—

Total real estate
 
5,057

 
—

 
—

 
5,057

Consumer:
 
 

 
 

 
 

 
 

Equity loans and lines of credit
 
233

 
—

 
—

 
233

Consumer and installment
 
—

 
—

 
—

 
—

Total consumer
 
233

 
—

 
—

 
233

Lease financing receivable
 
—

 
—

 
—

 
—

Total impaired loans
 
5,290

 
—

 
—

 
5,290

Other real estate owned
 
—

 
—

 
—

 
—

Total assets measured at fair value on a non-recurring basis
 
$
5,290

 
$
—

 
$
—

 
$
5,290

The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets and liabilities that are measured at the lower of cost or fair value that were recognized at fair value which was below cost at September 30, 2013 (in thousands).

Description
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Impaired loans:
 
 

 
 

 
 

 
 

Commercial:
 
 

 
 

 
 

 
 

Commercial and industrial
 
$
610

 
$
—

 
$
—

 
$
610

Agricultural production
 
—

 
—

 
—

 
—

Total commercial
 
610

 
—

 
—

 
610

Real estate:
 
 

 
 

 
 

 
 

Owner occupied
 
—

 
—

 
—

 
—

Real estate-construction and other land loans
 
—

 
—

 
—

 
—

Commercial real estate
 
—

 
—

 
—

 
—

Agricultural real estate
 
—

 
—

 
—

 
—

Other
 
—

 
—

 
—

 
—

Total real estate
 
—

 
—

 
—

 
—

Consumer:
 
 

 
 

 
 

 
 

Equity loans and lines of credit
 
61

 
—

 
—

 
61

Consumer and installment
 
—

 
—

 
—

 
—

Total consumer
 
61

 
—

 
—

 
61

Lease financing receivable
 
—

 
—

 
—

 
—

Total impaired loans
 
671

 
—

 
—

 
671

Other real estate owned
 
—

 
—

 
—

 
—

Total assets measured at fair value on a non-recurring basis
 
$
671

 
$
—

 
$
—

 
$
671