Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2017

Assets measured at fair value are summarized below.

	Fair Value Measurements at September 30, 2017 Using:
Assets:	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	31,063	$	—
Obligations of states and political subdivisions		—		113,615		—
Mortgage-backed securities in government sponsored entities		—		83,923		—
Equity securities in financial institutions		—		818		—
Swap asset		—		1,706		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		1,706		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,639
Other real estate owned		—		—		27

	Fair Value Measurements at December 31, 2016 Using:
Assets:	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	37,446	$	—
Obligations of states and political subdivisions		—		94,998		—
Mortgage-backed securities in government sponsored entities		—		62,642		—
Equity securities in financial institutions		—		778		—
Swap asset		—		1,839		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		1,839		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	952
Other real estate owned		—		—		37

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, 2017.

	Quantitative Information about Level 3 Fair Value Measurements
September 30, 2017	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,639	Appraisal of collateral	Appraisal adjustments	10% - 48%		34%
				Liquidation expense	0% - 10%		4%
				Holding period	0 - 30 months	20 months
Other real estate owned	$	27	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, 2016.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2016	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	952	Appraisal of collateral	Appraisal adjustments	10% - 67%		64%
				Liquidation expense	0% - 10%		4%
				Holding period	0 - 30 months	19 months
Other real estate owned	$	37	Appraisal of collateral	Appraisal adjustments	10% - 30%		10%
				Liquidation expense	0% - 10%		10%

Carrying Amount and Fair Value of Financial Instruments

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

September 30, 2017	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	33,394	$	33,394	$	33,394	$	—	$	—
Securities available for sale		229,419		229,419		—		229,419		—
Other securities		14,247		14,247		14,247		—		—
Loans, held for sale		4,662		4,662		4,662		—		—
Loans, net of allowance for loan losses		1,129,046		1,130,083		—		—		1,130,083
Bank owned life insurance		24,981		24,981		24,981		—		—
Accrued interest receivable		4,999		4,999		4,999		—		—
Swap asset		1,706		1,706		—		1,706		—
Financial Liabilities:
Nonmaturing deposits		947,262		947,262		947,262		—		—
Time deposits		254,027		254,017		—		—		254,017
Short-term FHLB advances		41,750		41,722		41,722		—		—
Long-term FHLB advances		15,000		14,966		—		—		14,966
Securities sold under agreement to repurchase		15,148		15,148		15,148		—		—
Subordinated debentures		29,427		29,470		—		—		29,470
Accrued interest payable		244		244		244		—		—
Swap liability		1,706		1,706		—		1,706		—

December 31, 2016	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	36,695	$	36,695	$	36,695	$	—	$	—
Securities available for sale		195,864		195,864		—		195,864		—
Loans, held for sale		2,268		2,268		2,268		—		—
Loans, net of allowance for loan losses		1,042,201		1,047,329		—		—		1,047,329
Other securities		14,055		14,055		14,055		—		—
Bank owned life insurance		24,552		24,552		24,552		—		—
Accrued interest receivable		3,854		3,854		3,854		—		—
Swap asset		1,839		1,839		—		1,839		—
Financial Liabilities:
Nonmaturing deposits		913,677		913,677		913,677		—		—
Time deposits		207,426		207,784		—		—		207,784
Short-term FHLB advances		31,000		31,007		31,007		—		—
Long-term FHLB advances		17,500		17,553		—		—		17,553
Securities sold under agreement to repurchase		28,925		28,925		28,925		—		—
Subordinated debentures		29,427		27,414		—		—		27,414
Accrued interest payable		181		181		181		—		—
Swap liability		1,839		1,839		—		1,839		—