Fair Value Disclosures (Tables)

12 Months Ended

Dec. 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 December 31, 2016 and 2015.



	At December 31, 2016
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	280,604,000	$	—	$	280,604,000
State and political subdivisions	—		16,482,000		—		16,482,000
Other equity securities	—		3,330,000		—		3,330,000
Total securities available for sale	$	—	$	300,416,000	$	—	$	300,416,000
Interest rate swap agreements	$	—	$	1,790,000	$	—	$	1,790,000
Total assets	$	—	$	302,206,000	$	—	$	302,206,000



	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

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

The following tables present 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 for losses of $205,000 and $162,000 at December 2016 and 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 $478,000 and $292,000 at December 31, 2016 and 2015, respectively.



	At December 31, 2016
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	375,000	$	—	$	375,000
Impaired loans	—		827,000		—		827,000
Total assets	$	—	$	1,202,000	$	—	$	1,202,000



	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

Estimated fair value of financial instruments

The carrying amounts and estimated fair values for financial instruments as of December 31, 2016 were as follows:



	Carrying		Estimated
As of December 31, 2016	value		fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	17,366,000	$	17,366,000	$	17,366,000	$	—	$	—
Interest-bearing deposits in other banks	293,000		293,000		293,000		—		—
Securities available for sale	300,416,000		300,416,000		—		300,416,000		—
Securities to be held to maturity	226,828,000		225,537,000		—		225,537,000		—
Restricted equity securities	11,930,000		11,930,000		—		11,930,000		—
Loans held for sale	782,000		782,000		—		782,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	297,952,000		293,103,000		—		558,000		292,545,000
Construction	24,954,000		24,548,000		—		—		24,548,000
Other	148,737,000		147,394,000		—		33,000		147,361,000
Municipal	27,035,000		27,446,000		—		—		27,446,000
Residential
Term	409,999,000		410,327,000		—		236,000		410,091,000
Construction	18,253,000		18,125,000		—		—		18,125,000
Home equity line of credit	109,986,000		108,740,000		—		—		108,740,000
Consumer	24,472,000		24,131,000		—		—		24,131,000
Total loans	1,061,388,000		1,053,814,000		—		827,000		1,052,987,000
Mortgage servicing rights	1,113,000		1,696,000		—		1,696,000		—
Interest rate swap agreements	1,790,000		1,790,000		—		1,790,000		—
Accrued interest receivable	5,532,000		5,532,000		—		5,532,000		—
Financial liabilities
Demand deposits	$	140,482,000	$	133,342,000	$	—	$	133,342,000	$	—
NOW deposits	282,971,000		259,418,000		—		259,418,000		—
Money market deposits	125,544,000		115,087,000		—		115,087,000		—
Savings deposits	217,340,000		188,260,000		—		188,260,000		—
Local certificates of deposit	210,316,000		209,370,000		—		209,370,000		—
National certificates of deposit	266,304,000		266,372,000		—		266,372,000		—
Total deposits	1,242,957,000		1,171,849,000		—		1,171,849,000		—
Repurchase agreements	84,174,000		79,827,000		—		79,827,000		—
Federal Home Loan Bank advances	194,727,000		193,733,000		—		193,733,000		—
Total borrowed funds	278,901,000		273,560,000		—		273,560,000		—
Accrued interest payable	479,000		479,000		—		479,000		—

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



	Carrying		Estimated
As of December 31, 2015	value		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		—