Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2015

Assets measured at fair value are summarized below.


	Fair Value Measurements at September 30, 2015 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:

Assets measured at fair value on a recurring basis:

U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	39,492	$	—
Obligations of states and political subdivisions		—		92,379		—
Mortgage-backed securities in government sponsored entities		—		66,197		—
Equity securities in financial institutions		—		587		—
Fair value of swap asset		—		2,379		—

Liabilities:
Fair value of swap liability		—		2,379		—

Assets measured at fair value on a nonrecurring basis:

Impaired loans	$	—	$	—	$	7,142
Other real estate owned		—		—		494
	Fair Value Measurements at December 31, 2014 Using:
	(Level 1)		(Level 2)		(Level 3)

Assets:

Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	42,902	$	—
Obligations of states and political subdivisions		—		88,021		—
Mortgage-backed securities in government sponsored entities		—		66,442		—
Equity securities in financial institutions		—		540		—
Fair value of swap asset		—		1,721		—

Liabilities:
Fair value of swap liability		—		1,721		—

Assets measured at fair value on a nonrecurring basis:

Impaired loans	$	—	$	—	$	10,126
Other real estate owned		—		—		560

Quantitative Information about Level 3 Fair Value Measurements

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at September 30, 2015.


	Quantitative Information about Level 3 Fair Value Measurements
September 30, 2015	Fair Value Estimate		Valuation Technique	Unobservable Input	Range

Impaired loans	$	7,142	Appraisal of collateral	Appraisal adjustments	10% - 30%

				Liquidation expense	0% - 10%

				Holding period	0 -30 months

			Discounted cash flows	Discount rates	3.8% - 8.0%

Other real estate owned	$	494	Appraisal of collateral	Appraisal adjustments	10% - 30%

				Liquidation expense	0% - 10%

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2014.


	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2014	Fair Value Estimate		Valuation Technique	Unobservable Input	Range

Impaired loans	$	10,126	Appraisal of collateral	Appraisal adjustments	10% - 30%

				Liquidation expense	0% - 10%

				Holding period	0 -30 months

			Discounted cash flows	Discount rates	3.8% - 8.0%

Other real estate owned	$	560	Appraisal of collateral	Appraisal adjustments	10% - 30%

				Liquidation expense	0% - 10%

Carrying Amount and Fair Values of Financial Instruments

The carrying amount and fair values of financial instruments are as follows.


September 30, 2015	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	33,619	$	33,619	$	33,619	$	—	$	—
Securities available for sale		198,655		198,655		—		198,655		—
Other securities		13,324		13,324		13,324		—		—
Loans, held for sale		1,223		1,223		1,223		—		—
Loans, net of allowance for loan losses		985,515		991,870		—		—		991,870
Bank owned life insurance		19,987		19,987		19,987		—		—
Accrued interest receivable		4,880		4,880		4,880		—		—
Fair value swap asset		2,379		2,379		—		2,379		—

Financial Liabilities:
Nonmaturing deposits		839,822		839,822		839,822		—		—
Time deposits		216,137		216,839		—		—		216,839
Short-term FHLB advances		54,700		54,700		54,700		—		—
Long-term FHLB advances		17,500		17,644		—		—		17,644
Securities sold under agreement to repurchase		20,887		20,887		20,887		—		—
Subordinated debentures		29,427		24,949		—		—		24,949
Accrued interest payable		152		152		152		—		—
Fair value swap liability		2,379		2,379		—		2,379		—


December 31, 2014	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	29,858	$	29,858	$	29,858	$	—	$	—
Securities available for sale		197,905		197,905		—		197,905		—
Other securities		12,586		12,586		12,586		—		—
Loans, held for sale		2,410		2,410		2,410		—		—
Loans, net of allowance for loan losses		900,589		908,118		—		—		908,118
Bank owned life insurance		19,637		19,637		19,637		—		—
Accrued interest receivable		3,852		3,852		3,852		—		—
Fair value swap asset		1,721		1,721		—		1,721		—

Financial Liabilities:
Nonmaturing deposits		748,948		748,948		748,948		—		—
Time deposits		219,970		221,263		—		—		221,263
Short-term FHLB advances		42,700		42,700		42,700		—		—
Long-term FHLB advances		22,500		22,699		—		—		22,699
Securities sold under agreement to repurchase		21,613		21,613		21,613		—		—
Subordinated debentures		29,427		24,688		—		—		24,688
Accrued interest payable		126		126		126		—		—
Fair value swap liability		1,721		1,721		—		1,721		—