Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016, December 31, 2015 and March 31, 2015.



	At March 31, 2016
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	193,657,000	$	—	$	193,657,000
State and political subdivisions	—		19,904,000		—		19,904,000
Other equity securities	—		3,164,000		—		3,164,000
Total assets	$	—	$	216,725,000	$	—	$	216,725,000



	At December 31, 2015
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	195,110,000	$	—	$	195,110,000
State and political subdivisions	—		24,506,000		—		24,506,000
Other equity securities	—		3,423,000		—		3,423,000
Total assets	$	—	$	223,039,000	$	—	$	223,039,000



	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

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 $130,000, $162,000 and $387,000 at March 31, 2016, December 31, 2015, and March 31, 2015, 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 $158,000, $292,000 and $799,000 at March 31, 2016, December 31, 2015, and March 31, 2015, respectively.



	At March 31, 2016
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	1,592,000	$	—	$	1,592,000
Impaired loans	—		879,000		—		879,000
Total assets	$	—	$	2,471,000	$	—	$	2,471,000



	At December 31, 2015
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	1,532,000	$	—	$	1,532,000
Impaired loans	—		699,000		—		699,000
Total assets	$	—	$	2,231,000	$	—	$	2,231,000



	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

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 amount and estimated fair values for financial instruments as of March 31, 2016 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	14,533,000	$	14,533,000	$	14,533,000	$	—	$	—
Interest bearing deposits in other banks	6,372,000		6,372,000		6,372,000		—		—
Securities available for sale	216,725,000		216,725,000		—		216,725,000		—
Securities to be held to maturity	236,611,000		243,337,000		—		243,337,000		—
Restricted equity securities	13,875,000		13,875,000		—		13,875,000		—
Loans held for sale	224,000		224,000		—		224,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	275,510,000		272,302,000		—		—		272,302,000
Construction	19,729,000		19,499,000		—		—		19,499,000
Other	131,644,000		131,637,000		—		—		131,637,000
Municipal	19,022,000		19,994,000		—		—		19,994,000
Residential
Term	403,749,000		410,670,000		—		17,000		410,653,000
Construction	11,715,000		11,648,000		—		—		11,648,000
Home equity line of credit	109,177,000		108,274,000		—		862,000		107,412,000
Consumer	24,177,000		24,153,000		—		—		24,153,000
Total loans	994,723,000		998,177,000		—		879,000		997,298,000
Mortgage servicing rights	924,000		1,543,000		—		1,543,000		—
Accrued interest receivable	6,271,000		6,271,000		—		6,271,000		—
Financial liabilities
Demand deposits	$	116,756,000	$	116,614,000	$	—	$	116,614,000	$	—
NOW deposits	240,112,000		230,934,000		—		230,934,000		—
Money market deposits	74,643,000		68,221,000		—		68,221,000		—
Savings deposits	205,218,000		187,346,000		—		187,346,000		—
Local certificates of deposit	207,664,000		209,455,000		—		209,455,000		—
National certificates of deposit	265,048,000		265,335,000		—		265,335,000		—
Total deposits	1,109,441,000		1,077,905,000		—		1,077,905,000		—
Repurchase agreements	91,399,000		88,442,000		—		88,442,000		—
Federal Home Loan Bank advances	185,132,000		186,398,000		—		186,398,000		—
Total borrowed funds	276,531,000		274,840,000		—		274,840,000		—
Accrued interest payable	495,000		495,000		—		495,000		—

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



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	14,299,000	$	14,299,000	$	14,299,000	$	—	$	—
Interest bearing deposits in other banks	4,013,000		4,013,000		4,013,000		—		—
Securities available for sale	223,039,000		223,039,000		—		223,039,000		—
Securities to be held to maturity	240,023,000		243,123,000		—		243,123,000		—
Restricted equity securities	14,257,000		14,257,000		—		14,257,000		—
Loans held for sale	349,000		349,000		—		349,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	265,616,000		262,763,000		—		—		262,763,000
Construction	24,166,000		23,906,000		—		—		23,906,000
Other	126,551,000		126,141,000		—		—		126,141,000
Municipal	19,730,000		20,331,000		—		—		20,331,000
Residential
Term	401,315,000		405,315,000		—		—		405,315,000
Construction	8,421,000		8,379,000		—		—		8,379,000
Home equity line of credit	109,101,000		108,118,000		—		699,000		107,419,000
Consumer	23,822,000		23,754,000		—		—		23,754,000
Total loans	978,722,000		978,707,000		—		699,000		978,008,000
Mortgage servicing rights	1,093,000		1,915,000		—		1,915,000		—
Accrued interest receivable	4,912,000		4,912,000		—		4,912,000		—
Financial liabilities
Demand deposits	$	130,566,000	$	125,651,000	$	—	$	125,651,000	$	—
NOW deposits	242,638,000		224,627,000		—		224,627,000		—
Money market deposits	92,994,000		82,050,000		—		82,050,000		—
Savings deposits	206,009,000		181,010,000		—		181,010,000		—
Local certificates of deposit	201,420,000		201,013,000		—		201,013,000		—
National certificates of deposit	169,562,000		169,617,000		—		169,617,000		—
Total deposits	1,043,189,000		983,968,000		—		983,968,000		—
Repurchase agreements	87,103,000		82,168,000		—		82,168,000		—
Federal Home Loan Bank advances	250,354,000		250,027,000		—		250,027,000		—
Total borrowed funds	337,457,000		332,195,000		—		332,195,000		—
Accrued interest payable	435,000		435,000		—		435,000		—