Fair Value (Tables)

9 Months Ended

Sep. 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 September 30, 2015, December 31, 2014 and September 30, 2014.



	At September 30, 2015
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	187,510,000	$	—	$	187,510,000
State and political subdivisions	—		25,290,000		—		25,290,000
Other equity securities	—		3,133,000		—		3,133,000
Total assets	$	—	$	215,933,000	$	—	$	215,933,000



	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 September 30, 2014
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	157,750,000	$	—	$	157,750,000
State and political subdivisions	—		30,619,000		—		30,619,000
Other equity securities	—		2,551,000		—		2,551,000
Total assets	$	—	$	190,920,000	$	—	$	190,920,000

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 $409,000, $654,000 and $533,000 at September 30, 2015, December 31, 2014, and September 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 $394,000, $1,074,000 and $2,165,000 at September 30, 2015, December 31, 2014, and September 30, 2014, respectively.



	At September 30, 2015
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	1,916,000	$	—	$	1,916,000
Impaired loans	—		1,413,000		—		1,413,000
Total assets	$	—	$	3,329,000	$	—	$	3,329,000



	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 September 30, 2014
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	4,557,000	$	—	$	4,557,000
Impaired loans	—		2,465,000		—		2,465,000
Total assets	$	—	$	7,022,000	$	—	$	7,022,000

Estimated fair value of financial instruments

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



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	19,169,000	$	19,169,000	$	19,169,000	$	—	$	—
Interest bearing deposits in other banks	301,000		301,000		301,000		—		—
Securities available for sale	215,933,000		215,933,000		—		215,933,000		—
Securities to be held to maturity	245,322,000		248,344,000		—		248,344,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	200,000		200,000		—		200,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	264,807,000		262,197,000		—		—		262,197,000
Construction	22,927,000		22,701,000		—		—		22,701,000
Other	117,379,000		117,427,000		—		—		117,427,000
Municipal	21,357,000		21,907,000		—				21,907,000
Residential
Term	383,691,000		390,392,000		—		1,413,000		388,979,000
Construction	12,002,000		11,960,000		—		—		11,960,000
Home equity line of credit	108,265,000		107,589,000		—		—		107,589,000
Consumer	23,046,000		23,117,000		—		—		23,117,000
Total loans	953,474,000		957,290,000		—		1,413,000		955,877,000
Mortgage servicing rights	1,095,000		2,014,000		—		2,014,000		—
Accrued interest receivable	5,189,000		5,189,000		—		5,189,000		—
Financial liabilities
Demand deposits	$	128,555,000	$	124,979,000	$	—	$	124,979,000	$	—
NOW deposits	246,155,000		230,680,000		—		230,680,000		—
Money market deposits	95,217,000		84,535,000		—		84,535,000		—
Savings deposits	199,131,000		176,791,000		—		176,791,000		—
Local certificates of deposit	195,607,000		196,663,000		—		196,663,000		—
National certificates of deposit	193,700,000		193,774,000		—		193,774,000		—
Total deposits	1,058,365,000		1,007,422,000		—		1,007,422,000		—
Repurchase agreements	100,498,000		95,078,000		—		95,078,000		—
Federal Home Loan Bank advances	196,871,000		197,795,000		—		197,795,000		—
Total borrowed funds	297,369,000		292,873,000		—		292,873,000		—
Accrued interest payable	499,000		499,000		—		499,000		—

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 September 30, 2014 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	17,167,000	$	17,167,000	$	17,167,000	$	—	$	—
Interest bearing deposits in other banks	773,000		773,000		773,000		—		—
Securities available for sale	190,920,000		190,920,000		—		190,920,000		—
Securities to be held to maturity	281,740,000		280,779,000		—		280,779,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	383,000		383,000		—		383,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	238,779,000		237,103,000		—		353,000		236,750,000
Construction	26,017,000		25,834,000		—		—		25,834,000
Other	95,278,000		95,470,000		—		162,000		95,308,000
Municipal	20,704,000		20,947,000		—		—		20,947,000
Residential
Term	385,155,000		390,586,000		—		1,770,000		388,816,000
Construction	12,229,000		12,205,000		—		—		12,205,000
Home equity line of credit	100,196,000		99,701,000		—		180,000		99,521,000
Consumer	18,116,000		18,337,000		—		—		18,337,000
Total loans	896,474,000		900,183,000		—		2,465,000		897,718,000
Mortgage servicing rights	1,078,000		2,135,000		—		2,135,000		—
Accrued interest receivable	5,141,000		5,141,000		—		5,141,000		—
Financial liabilities
Demand deposits	$	119,512,000	$	113,930,000	$	—	$	113,930,000	$	—
NOW deposits	213,694,000		195,698,000		—		195,698,000		—
Money market deposits	99,260,000		82,678,000		—		82,678,000		—
Savings deposits	159,080,000		138,305,000		—		138,305,000		—
Local certificates of deposit	210,332,000		210,696,000		—		210,696,000		—
National certificates of deposit	253,444,000		254,176,000		—		254,176,000		—
Total deposits	1,055,322,000		995,483,000		—		995,483,000		—
Repurchase agreements	86,908,000		81,704,000		—		81,704,000		—
Federal Home Loan Bank advances	171,728,000		175,189,000		—		175,189,000		—
Total borrowed funds	258,636,000		256,893,000		—		256,893,000		—
Accrued interest payable	535,000		535,000		—		535,000		—