Fair Value (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2015, December 31, 2014 and June 30, 2014.



	At June 30, 2015
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	185,592,000	$	—	$	185,592,000
State and political subdivisions	—		25,040,000		—		25,040,000
Other equity securities	—		3,182,000		—		3,182,000
Total assets	$	—	$	213,814,000	$	—	$	213,814,000



	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 June 30, 2014
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	166,703,000	$	—	$	166,703,000
State and political subdivisions	—		134,895,000		—		134,895,000
Other equity securities	—		2,282,000		—		2,282,000
Total assets	$	—	$	303,880,000	$	—	$	303,880,000

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 $332,000, $654,000 and $256,000 at June 30, 2015, December 31, 2014, and June 30, 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 $805,000, $1,074,000 and $2,105,000 at June 30, 2015, December 31, 2014, and June 30, 2014, respectively.



	At June 30, 2015
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	2,192,000	$	—	$	2,192,000
Impaired loans	—		1,830,000		—		1,830,000
Total assets	$	—	$	4,022,000	$	—	$	4,022,000



	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 June 30, 2014
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	4,863,000	$	—	$	4,863,000
Impaired loans	—		2,678,000		—		2,678,000
Total assets	$	—	$	7,541,000	$	—	$	7,541,000

Estimated fair value of financial instruments

The carrying amount and estimated fair values for financial instruments as of June 30, 2015 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	16,481,000	$	16,481,000	$	16,481,000	$	—	$	—
Interest bearing deposits in other banks	24,565,000		24,565,000		24,565,000		—		—
Securities available for sale	213,814,000		213,814,000		—		213,814,000		—
Securities to be held to maturity	249,250,000		248,698,000		—		248,698,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	245,788,000		243,426,000		—		170,000		243,256,000
Construction	38,636,000		38,265,000		—		—		38,265,000
Other	126,191,000		126,149,000		—		25,000		126,124,000
Municipal	22,801,000		23,092,000		—		—		23,092,000
Residential
Term	376,632,000		382,268,000		—		1,635,000		380,633,000
Construction	14,182,000		14,150,000		—		—		14,150,000
Home equity line of credit	107,657,000		106,966,000		—		—		106,966,000
Consumer	21,314,000		21,393,000		—		—		21,393,000
Total loans	953,201,000		955,709,000		—		1,830,000		953,879,000
Mortgage servicing rights	1,071,000		1,914,000		—		1,914,000		—
Accrued interest receivable	6,180,000		6,180,000		—		6,180,000		—
Financial liabilities
Demand deposits	$	107,244,000	$	102,223,000	$	—	$	102,223,000	$	—
NOW deposits	221,964,000		202,972,000		—		202,972,000		—
Money market deposits	102,219,000		89,208,000		—		89,208,000		—
Savings deposits	186,777,000		162,469,000		—		162,469,000		—
Local certificates of deposit	194,653,000		194,877,000		—		194,877,000		—
National certificates of deposit	283,466,000		283,514,000		—		283,514,000		—
Total deposits	1,096,323,000		1,035,263,000		—		1,035,263,000		—
Repurchase agreements	87,875,000		82,365,000		—		82,365,000		—
Federal Home Loan Bank advances	190,138,000		192,471,000		—		192,471,000		—
Total borrowed funds	278,013,000		274,836,000		—		274,836,000		—
Accrued interest payable	506,000		506,000		—		506,000		—

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		—

The carrying amount and estimated fair values for financial instruments as of June 30, 2014 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	20,416,000	$	20,416,000	$	20,416,000	$	—	$	—
Interest bearing deposits in other banks	272,000		272,000		272,000		—		—
Securities available for sale	303,880,000		303,880,000		—		303,880,000		—
Securities to be held to maturity	198,135,000		195,550,000		—		195,550,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	272,000		272,000		—		272,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	240,584,000		238,883,000		—		973,000		237,910,000
Construction	16,245,000		16,130,000		—		—		16,130,000
Other	101,666,000		101,931,000		—		212,000		101,719,000
Municipal	17,874,000		18,191,000		—		—		18,191,000
Residential
Term	377,512,000		385,216,000		—		1,314,000		383,902,000
Construction	13,225,000		13,200,000		—		—		13,200,000
Home equity line of credit	96,919,000		96,556,000		—		179,000		96,377,000
Consumer	16,195,000		16,492,000		—		—		16,492,000
Total loans	880,220,000		886,599,000		—		2,678,000		883,921,000
Mortgage servicing rights	1,074,000		2,123,000		—		2,123,000		—
Accrued interest receivable	6,247,000		6,247,000		—		6,247,000		—
Financial liabilities
Demand deposits	$	99,210,000	$	94,728,000	$	—	$	94,728,000	$	—
NOW deposits	174,680,000		159,469,000		—		159,469,000		—
Money market deposits	92,060,000		76,740,000		—		76,740,000		—
Savings deposits	153,602,000		133,733,000		—		133,733,000		—
Local certificates of deposit	216,995,000		218,354,000		—		218,354,000		—
National certificates of deposit	296,889,000		298,129,000		—		298,129,000		—
Total deposits	1,033,436,000		981,153,000		—		981,153,000		—
Repurchase agreements	72,135,000		72,135,000		—		72,135,000		—
Federal Home Loan Bank advances	226,385,000		230,355,000		—		230,355,000		—
Total borrowed funds	298,520,000		302,490,000		—		302,490,000		—
Accrued interest payable	570,000		570,000		—		570,000		—