Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2016

Assets measured at fair value are summarized below.


	Fair Value Measurements at September 30, 2016 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	$	—	$	38,049	$	—
Obligations of states and political subdivisions		—		96,227		—
Mortgage-backed securities in government sponsored entities		—		65,977		—
Equity securities in financial institutions		—		714		—
Swap asset		—		3,705		—

Liabilities:

Swap liability		—		3,705		—

Assets measured at fair value on a nonrecurring basis:

Impaired loans	$	—	$	—	$	319
Other real estate owned		—		—		62


	Fair Value Measurements at December 31, 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	$	—	$	40,937	$	—
Obligations of states and political subdivisions		—		92,152		—
Mortgage-backed securities in government sponsored entities		—		62,573		—
Equity securities in financial institutions		—		587		—
Swap asset		—		1,962		—

Liabilities:

Swap liability		—		1,962		—

Assets measured at fair value on a nonrecurring basis:

Impaired loans	$	—	$	—	$	759
Other real estate owned		—		—		109

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, 2016.


	Quantitative Information about Level 3 Fair Value Measurements
September 30, 2016	Fair Value		Valuation Technique		Unobservable Input	Range	Weighted Average

Impaired loans	$	319		Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
					Liquidation expense	0% - 10%	10%
					Holding period	0 - 30 months	18 months

Other real estate owned	$	62		Appraisal of collateral	Appraisal adjustments	10% - 30%	10%

					Liquidation expense	0% - 10%	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, 2015.


	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2015	Fair Value		Valuation Technique		Unobservable Input	Range	Weighted Average

Impaired loans	$	759		Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
					Liquidation expense	0% - 10%	10%
					Holding period	0 -30 months	17 months

Other real estate owned	$	109		Appraisal of collateral	Appraisal adjustments	10% - 30%	10%

					Liquidation expense	0% - 10%	10%

Carrying Amount and Fair Values of Financial Instruments

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


September 30, 2016	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	33,229	$	33,229	$	33,229	$	—	$	—
Securities available for sale		200,967		200,967		—		200,967		—
Loans, held for sale		2,827		2,827		2,827		—		—
Loans, net of allowance for loan losses		1,033,516		1,037,955		—		—		1,037,955
Other securities		13,926		13,926		13,926		—		—
Bank owned life insurance		24,404		24,404		24,404		—		—
Accrued interest receivable		4,547		4,547		4,547		—		—
Swap asset		3,705		3,705		—		3,705		—

Financial Liabilities:
Nonmaturing deposits		915,360		915,360		915,360		—		—
Time deposits		218,793		219,345		—		—		219,345
Short-term FHLB advances		17,500		17,394		17,394		—		—
Long-term FHLB advances		17,500		17,710		—		—		17,710
Securities sold under agreement to repurchase		21,713		21,713		21,713		—		—
Subordinated debentures		29,427		30,367		—		—		30,367
Accrued interest payable		137		137		137		—		—
Swap liability		3,705		3,705		—		3,705		—


December 31, 2015	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	35,561	$	35,561	$	35,561	$	—	$	—
Securities available for sale		196,249		196,249		—		196,249		—
Loans, held for sale		2,698		2,698		2,698		—		—
Loans, net of allowance for loan losses		987,166		986,848		—		—		986,848
Other securities		13,452		13,452		13,452		—		—
Bank owned life insurance		20,104		20,104		20,104		—		—
Accrued interest receivable		3,902		3,902		3,902		—		—
Swap asset		1,962		1,962		—		1,962		—

Financial Liabilities:
Nonmaturing deposits		840,984		840,984		840,984		—		—
Time deposits		211,049		212,006		—		—		212,006
Short-term FHLB advances		53,700		52,906		52,906		—		—
Long-term FHLB advances		17,500		17,687		—		—		17,687
Securities sold under agreement to repurchase		25,040		25,040		25,040		—		—
Subordinated debentures		29,427		25,572		—		—		25,572
Accrued interest payable		120		120		120		—		—
Swap liability		1,962		1,962		—		1,962		—