Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Assets and liabilities measured on recurring basis measured at fair value

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2015, December 31, 2014 and March 31, 2014.



	At March 31, 2015
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	127,617,000	$	—	$	127,617,000
State and political subdivisions	—		25,598,000		—		25,598,000
Other equity securities	—		3,102,000		—		3,102,000
Total assets	$	—	$	156,317,000	$	—	$	156,317,000



	At December 31, 2014
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	151,855,000	$	—	$	151,855,000
State and political subdivisions	—		30,855,000		—		30,855,000
Other equity securities	—		2,551,000		—		2,551,000
Total assets	$	—	$	185,261,000	$	—	$	185,261,000



	At March 31, 2014
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	172,115,000	$	—	$	172,115,000
State and political subdivisions	—		131,315,000		—		131,315,000
Other equity securities	—		2,270,000		—		2,270,000
Total assets	$	—	$	305,700,000	$	—	$	305,700,000

Assets and liabilities measured on non-recurring basis measured at fair value

The following tables include assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance of $387,000, $654,000 and $215,000 at March 31, 2015, December 31, 2014, and March 31, 2014, respectively. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of $799,000, $1,074,000 and $1,762,000 at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.



	At March 31, 2015
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	2,899,000	$	—	$	2,899,000
Impaired loans	—		1,439,000		—		1,439,000
Total assets	$	—	$	4,338,000	$	—	$	4,338,000



	At December 31, 2014
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	3,785,000	$	—	$	3,785,000
Impaired loans	—		1,909,000		—		1,909,000
Total assets	$	—	$	5,694,000	$	—	$	5,694,000



	At March 31, 2014
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	4,934,000	$	—	$	4,934,000
Impaired loans	—		2,327,000		—		2,327,000
Total assets	$	—	$	7,261,000	$	—	$	7,261,000

Estimated fair value of financial instruments

The carrying amount and estimated fair values for financial instruments as of March 31, 2015 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	13,855,000	$	13,855,000	$	13,855,000	$	—	$	—
Interest bearing deposits in other banks	336,000		336,000		336,000		—		—
Securities available for sale	156,317,000		156,317,000		—		156,317,000		—
Securities to be held to maturity	262,455,000		267,247,000		—		267,247,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	238,218,000		236,340,000		—		184,000		236,156,000
Construction	33,698,000		33,432,000		—		—		33,432,000
Other	113,363,000		113,409,000		—		9,000		113,400,000
Municipal	26,257,000		26,844,000		—		—		26,844,000
Residential
Term	382,517,000		389,582,000		—		1,018,000		388,564,000
Construction	13,008,000		12,988,000		—		—		12,988,000
Home equity line of credit	102,826,000		102,302,000		—		228,000		102,074,000
Consumer	19,086,000		19,259,000		—		—		19,259,000
Total loans	928,973,000		934,156,000		—		1,439,000		932,717,000
Mortgage servicing rights	1,003,000		1,746,000		—		1,746,000		—
Accrued interest receivable	5,724,000		5,724,000		—		5,724,000		—
Financial liabilities
Demand deposits	$	100,939,000	$	99,935,000	$	—	$	99,935,000	$	—
NOW deposits	199,099,000		189,139,000		—		189,139,000		—
Money market deposits	101,292,000		87,816,000		—		87,816,000		—
Savings deposits	167,338,000		151,345,000		—		151,345,000		—
Local certificates of deposit	199,553,000		200,506,000		—		200,506,000		—
National certificates of deposit	198,604,000		198,846,000		—		198,846,000		—
Total deposits	966,825,000		927,587,000		—		927,587,000		—
Repurchase agreements	85,657,000		81,693,000		—		81,693,000		—
Federal Home Loan Bank advances	226,919,000		230,230,000		—		230,230,000		—
Total borrowed funds	312,576,000		311,923,000		—		311,923,000		—
Accrued interest payable	564,000		564,000		—		564,000		—

The carrying amounts and estimated fair values for financial instruments as of December 31, 2014 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	13,057,000	$	13,057,000	$	13,057,000	$	—	$	—
Interest bearing deposits in other banks	3,559,000		3,559,000		3,559,000		—		—
Securities available for sale	185,261,000		185,261,000		—		185,261,000		—
Securities to be held to maturity	275,919,000		279,704,000		—		279,704,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	238,104,000		236,368,000		—		431,000		235,937,000
Construction	29,951,000		29,733,000		—		—		29,733,000
Other	102,738,000		102,858,000		—		—		102,858,000
Municipal	20,406,000		20,833,000		—		—		20,833,000
Residential
Term	382,620,000		389,200,000		—		990,000		388,210,000
Construction	12,136,000		12,123,000		—		—		12,123,000
Home equity line of credit	102,258,000		101,733,000		—		488,000		101,245,000
Consumer	19,007,000		19,207,000		—		—		19,207,000
Total loans	907,220,000		912,055,000		—		1,909,000		910,146,000
Mortgage servicing rights	1,086,000		2,088,000		—		2,088,000		—
Accrued interest receivable	4,748,000		4,748,000		—		4,748,000		—
Financial liabilities
Demand deposits	$	113,133,000	$	109,973,000	$	—	$	109,973,000	$	—
NOW deposits	199,977,000		186,490,000		—		186,490,000		—
Money market deposits	98,607,000		83,837,000		—		83,837,000		—
Savings deposits	165,601,000		146,936,000		—		146,936,000		—
Local certificates of deposit	205,072,000		205,360,000		—		205,360,000		—
National certificates of deposit	242,429,000		242,824,000		—		242,824,000		—
Total deposits	1,024,819,000		975,420,000		—		975,420,000		—
Repurchase agreements	74,725,000		70,783,000		—		70,783,000		—
Federal Home Loan Bank advances	205,191,000		208,259,000		—		208,259,000		—
Total borrowed funds	279,916,000		279,042,000		—		279,042,000		—
Accrued interest payable	521,000		521,000		—		521,000		—



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	13,894,000	$	13,894,000	$	13,894,000	$	—	$	—
Interest bearing deposits in other banks	2,935,000		2,935,000		2,935,000		—		—
Securities available for sale	305,700,000		305,700,000		—		305,700,000		—
Securities to be held to maturity	182,853,000		176,562,000		—		176,562,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	56,000		56,000		—		56,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	234,848,000		233,305,000		—		672,000		232,633,000
Construction	20,986,000		20,848,000		—		—		20,848,000
Other	94,618,000		94,888,000		—		199,000		94,689,000
Municipal	17,772,000		18,089,000		—		—		18,089,000
Residential
Term	371,018,000		375,802,000		—		1,397,000		374,405,000
Construction	12,334,000		12,312,000		—		—		12,312,000
Home equity line of credit	91,362,000		91,075,000		—		59,000		91,016,000
Consumer	14,321,000		14,650,000		—		—		14,650,000
Total loans	857,259,000		860,969,000		—		2,327,000		858,642,000
Mortgage servicing rights	1,129,000		2,114,000		—		2,114,000		—
Accrued interest receivable	5,962,000		5,962,000		—		5,962,000		—
Financial liabilities
Demand deposits	$	94,260,000	$	87,904,000	$	—	$	87,904,000	$	—
NOW deposits	158,278,000		140,824,000		—		140,824,000		—
Money market deposits	89,382,000		72,560,000		—		72,560,000		—
Savings deposits	149,076,000		126,637,000		—		126,637,000		—
Local certificates of deposit	224,552,000		226,091,000		—		226,091,000		—
National certificates of deposit	330,422,000		332,069,000		—		332,069,000		—
Total deposits	1,045,970,000		986,085,000		—		986,085,000		—
Repurchase agreements	83,372,000		83,372,000		—		83,372,000		—
Federal Home Loan Bank advances	170,147,000		174,646,000		—		174,646,000		—
Total borrowed funds	253,519,000		258,018,000		—		258,018,000		—
Accrued interest payable	607,000		607,000		—		607,000		—

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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