Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value, Assets Measured on Recurring Basis

The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2016 and December 31, 2015.



				September 30, 2016 Fair Value Measurements Using
	Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Government-sponsored agencies	$	85,990		$	—		$	85,990	$	—
Municipal securities	97,501			—			97,501		—
Mortgage-backed securities	246,085			—			246,085		—
Asset-backed securities	19,496			—			19,496		—
Corporate securities	18,880			—			18,880		—
Other securities	3,026			3,026			—		—
Total available-for-sale securities	470,978			3,026			467,952		—
Loans held-for-sale (mandatory pricing agreements)	31,196			—			31,196		—
Forward contracts	(465		)	(465		)	—		—
IRLCs	2,032			—			—		2,032



			December 31, 2015 Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Government-sponsored agencies	$	37,750	$	—	$	37,750	$	—
Municipal securities	21,469		—		21,469		—
Mortgage-backed securities	113,052		—		113,052		—
Asset-backed securities	19,361		—		19,361		—
Corporate securities	19,087		—		19,087		—
Other securities	2,979		2,979		—		—
Total available-for-sale securities	213,698		2,979		210,719		—
Loans held-for-sale (mandatory pricing agreements)	24,065		—		24,065		—
Forward contracts	30		30		—		—
IRLCs	582		—		—		582

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and nine month periods ended September 30, 2016 and September 30, 2015.



	Three Months Ended
	Interest Rate Lock Commitments
Balance, July 1, 2016	$	1,724
Total realized gains
Included in net income	308
Balance, September 30, 2016	$	2,032

Balance, July 1, 2015	$	623
Total realized gains
Included in net income	284
Balance, September 30, 2015	$	907



	Nine Months Ended
	Interest Rate Lock Commitments
Balance, January 1, 2016	$	582
Total realized gains
Included in net income	1,450
Balance, September 30, 2016	$	2,032

Balance, January 1, 2015	$	521
Total realized gains
Included in net income	386
Balance, September 30, 2015	$	907

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following tables present quantitative information about significant unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill.



	Fair Value at September 30, 2016	Valuation Technique	Significant Unobservable Inputs	Range
IRLCs	2,032	Discounted cash flow	Loan closing rates	41% - 99%



	Fair Value at December 31, 2015		Valuation Technique	Significant Unobservable Inputs	Range
IRLCs	$	582	Discounted cash flow	Loan closing rates	43% - 100%

Fair Value, by Balance Sheet Grouping

The following tables summarize the carrying value and estimated fair value of all financial assets and liabilities at September 30, 2016 and December 31, 2015.



			September 30, 2016 Fair Value Measurements Using
	Carrying Amount		Quoted Prices In Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	67,825	$	67,825	$	—	$	—
Interest-bearing time deposits	250		250		—		—
Securities held-to-maturity	5,500		—		5,578		—
Loans held-for-sale (best efforts pricing agreements)	1,275		—		1,275
Loans	1,198,932		—		—		1,209,791
Accrued interest receivable	5,848		5,848		—		—
Federal Home Loan Bank of Indianapolis stock	8,595		—		8,595		—
Deposits	1,493,601		510,055		—		971,679
Advances from Federal Home Loan Bank	147,978		—		146,334		—
Subordinated debt	36,541		25,000		13,542		—
Accrued interest payable	125		125		—		—



			December 31, 2015 Fair Value Measurements Using
	Carrying Amount		Quoted Prices In Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	25,152	$	25,152	$	—	$	—
Interest-bearing time deposits	1,000		1,000		—		—
Loans held-for-sale (best efforts pricing agreements)	12,453		—		12,453		—
Loans	953,859		—		—		967,303
Accrued interest receivable	4,105		4,105		—		—
Federal Home Loan Bank of Indianapolis stock	8,595		—		8,595		—
Deposits	956,054		472,481		—		478,360
Advances from Federal Home Loan Bank	190,957		—		188,126		—
Subordinated debt	12,724		—		13,212		—
Accrued interest payable	117		117		—		—