Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

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, 2017 and December 31, 2016.



			September 30, 2017 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	$	138,499	$	—	$	138,499	$	—
Municipal securities	95,435		—		95,435		—
Mortgage-backed securities	219,579		—		219,579		—
Asset-backed securities	10,000		—		10,000		—
Corporate securities	26,004		—		26,004		—
Other securities	2,951		2,951		—		—
Total available-for-sale securities	492,468		2,951		489,517		—
Loans held-for-sale (mandatory pricing agreements)	18,660		—		18,660		—
Forward contracts	172		172		—		—
IRLCs	787		—		—		787



			December 31, 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	$	91,896	$	—	$	91,896	$	—
Municipal securities	91,886		—		91,886		—
Mortgage-backed securities	231,641		—		231,641		—
Asset-backed securities	19,534		—		19,534		—
Corporate securities	18,811		—		18,811		—
Other securities	2,932		2,932		—		—
Total available-for-sale securities	456,700		2,932		453,768		—
Loans held-for-sale (mandatory pricing agreements)	27,101		—		27,101		—
Forward contracts	438		438		—		—
IRLCs	610		—		—		610

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 months ended September 30, 2017 and September 30, 2016.



	Three Months Ended
	Interest Rate Lock Commitments
Balance, July 1, 2017	$	652
Total realized gains
Included in net income	135
Balance, September 30, 2017	$	787

Balance, July 1, 2016	$	1,724
Total realized gains
Included in net income	308
Balance, September 30, 2016	$	2,032



	Nine Months Ended
	Interest Rate Lock Commitments
Balance, January 1, 2017	$	610
Total realized gains
Included in net income	177
Balance, September 30, 2017	$	787

Balance, January 1, 2016	$	582
Total realized gains
Included in net income	1,450
Balance, September 30, 2016	$	2,032

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, 2017		Valuation Technique	Significant Unobservable Inputs	Range
IRLCs	$	787	Discounted cash flow	Loan closing rates	43% - 100%
OREO	$	648	Appraisal value	Marketability discount	24%



	Fair Value at December 31, 2016		Valuation Technique	Significant Unobservable Inputs	Range
IRLCs	$	610	Discounted cash flow	Loan closing rates	43% - 99%

Fair Value, by Balance Sheet Grouping

The following tables present the carrying value and estimated fair value of all financial assets and liabilities at September 30, 2017 and December 31, 2016.



	September 30, 2017 Fair Value Measurements Using
	Carrying Amount		Fair Value		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	$	125,704	$	125,704	$	125,704	$	—	$	—
Securities held-to-maturity	19,212		19,071		—		19,071		—
Loans held-for-sale (best efforts pricing agreements)	26,827		26,827		—		26,827		—
Net loans	1,854,400		1,861,646		—		—		1,861,646
Accrued interest receivable	9,366		9,366		9,366		—		—
Federal Home Loan Bank of Indianapolis stock	19,575		19,575		—		19,575		—
Deposits	1,997,028		1,980,211		672,555		—		1,307,656
Advances from Federal Home Loan Bank	365,180		349,650		—		349,650		—
Subordinated debt	36,689		39,461		25,990		13,471		—
Accrued interest payable	237		237		237		—		—



	December 31, 2016 Fair Value Measurements Using
	Carrying Amount		Fair Value		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	$	39,452	$	39,452	$	39,452	$	—	$	—
Interest-bearing time deposits	250		250		250		—		—
Securities held-to-maturity	16,671		16,197		—		16,197		—
Net loans	1,239,808		1,233,937		—		—		1,233,937
Accrued interest receivable	6,708		6,708		6,708		—		—
Federal Home Loan Bank of Indianapolis stock	8,910		8,910		—		8,910		—
Deposits	1,462,867		1,441,794		492,435		—		949,359
Advances from Federal Home Loan Bank	189,981		186,258		—		186,258		—
Subordinated debt	36,578		38,425		24,900		13,525		—
Accrued interest payable	112		112		112		—		—