Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis.



(in thousands) Description of Financial Instruments	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2016
Securities available for sale:
Mortgage-backed securities and collaterized mortgage obligations issued by U.S. government agencies	$	254,041	$	—	$	253,434	$	607
Debentures of government sponsored agencies	$	35,403	$	—	$	35,403	$	—
Privately-issued collateralized mortgage obligations	$	419	$	—	$	419	$	—
Obligations of state and political subdivisions	$	77,701	$	—	$	77,701	$	—
Corporate bonds	$	5,016	$	—	$	5,016	$	—
Derivative financial assets (interest rate contracts)	$	55	$	—	$	55	$	—
Derivative financial liabilities (interest rate contracts)	$	933	$	—	$	933	$	—
December 31, 2015
Securities available for sale:
Mortgage-backed securities and collaterized mortgage obligations issued by U.S. government agencies	$	190,093	$	—	$	188,381	$	1,712
Debentures of government sponsored agencies	$	160,892	$	—	$	160,892	$	—
Privately-issued collateralized mortgage obligations	$	4,150	$	—	$	4,150	$	—
Obligations of state and political subdivisions	$	57,673	$	—	$	57,673	$	—
Corporate bonds	$	4,979	$	—	$	4,979	$	—
Derivative financial assets (interest rate contracts)	$	3	$	—	$	3	$	—
Derivative financial liabilities (interest rate contracts)	$	1,658	$	—	$	1,658	$	—

Fair Value Measurements, Nonrecurring

The following table presents the carrying value of assets and liabilities measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of December 31, 2016 and 2015.



(in thousands) Description of Financial Instruments	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2016
Other real estate	$	408	$	—	$	—	$	408
December 31, 2015
Other real estate	$	421	$	—	$	—	$	421

Fair Value, by Balance Sheet Grouping

The table below is a summary of fair value estimates for financial instruments as of December 31, 2016 and 2015, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as BOLI. Additionally, we hold shares of FHLB stock and Visa Inc. Class B common stock at cost. These shares are restricted from resale and their values were discussed in Note 2, Investment Securities, above.



	December 31, 2016					December 31, 2015
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets:
Cash and cash equivalents	$	48,804	$	48,804	Level 1	$	26,343	$	26,343	Level 1
Investment securities held-to-maturity	44,438		45,097		Level 2	69,637		71,054		Level 2
Loans, net	1,471,174		1,473,360		Level 3	1,436,229		1,470,380		Level 3
Interest receivable	6,319		6,319		Level 2	6,643		6,643		Level 2
Financial liabilities:
Deposits	1,772,700		1,773,102		Level 2	1,728,226		1,728,717		Level 2
Federal Home Loan Bank borrowing	—		—		Level 2	67,000		67,279		Level 2
Subordinated debentures	5,586		5,083		Level 3	5,395		5,132		Level 3
Interest payable	134		134		Level 2	187		187		Level 2