Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018
	Carrying Amount		Fair Value
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	29,748	$	29,748	$	—	$	—	$	29,748
Interest-earning deposits in other banks	17,528		17,528		—		—		17,528
Federal funds sold	31		31		—		—		31
Available-for-sale debt securities	434,697		—		434,697		—		434,697
Equity securities	7,184		7,184		—		—		7,184
Loans, net	902,852		—		—		896,241		896,241
Federal Home Loan Bank stock	6,843		N/A		N/A		N/A		N/A
Accrued interest receivable	5,898		18		1,988		3,892		5,898
Financial liabilities:
Deposits	1,275,529		1,016,266		102,208		—		1,118,474
Short-term borrowings	—		—		—		—		—
Junior subordinated deferrable interest debentures	5,155		—		—		4,180		4,180
Accrued interest payable	119		—		67		52		119



	December 31, 2017
	Carrying Amount		Fair Value
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks	$	38,286	$	38,286	$	—	$	—	$	38,286
Interest-earning deposits in other banks	62,080		62,080		—		—		62,080
Federal funds sold	17		17		—		—		17
Available-for-sale debt securities	535,281		—		535,281		—		535,281
Equity securities	7,423		7,423		—		—		7,423
Loans, net	891,901		—		—		899,191		899,191
Federal Home Loan Bank stock	6,843		N/A		N/A		N/A		N/A
Accrued interest receivable	7,168		57		3,256		3,855		7,168
Financial liabilities:
Deposits	1,425,687		1,296,048		127,966		—		1,424,014
Junior subordinated deferrable interest debentures	5,155		—		—		3,550		3,550
Accrued interest payable	110		—		72		38		110

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 as of September 30, 2018 (in thousands).



Description	Fair Value		Level 1		Level 2		Level 3
Available-for-sale debt securities:
U.S. Government agencies	$	22,243	$	—	$	22,243	$	—
Obligations of states and political subdivisions	66,114		—		66,114		—
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	243,948		—		243,948		—
Private label mortgage and asset backed securities	102,392		—		102,392		—
Equity securities	7,184		7,184		—		—
Total assets measured at fair value on a recurring basis	$	441,881	$	7,184	$	434,697	$	—

The Company is required or permitted to record the following assets at fair value on a recurring basis as of December 31, 2017 (in thousands).



Description	Fair Value		Level 1		Level 2		Level 3
Available-for-sale debt securities:
U.S. Government agencies	$	66,587	$	—	$	66,587	$	—
Obligations of states and political subdivisions	143,105		—		143,105		—
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	234,908		—		234,908		—
Private label mortgage and asset backed securities	90,681		—		90,681		—
Equity securities	7,423		7,423		—		—
Total assets measured at fair value on a recurring basis	$	542,704	$	7,423	$	535,281	$	—

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, 2017 (in thousands).



Description	Fair Value		Level 1		Level 2		Level 3
Other repossessed assets	70		—		—		70
Total assets measured at fair value on a non-recurring basis	$	70	$	—	$	—	$	70