Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:

	Fair Value Measurements at September 30, 2013 Using
	Quoted Prices in
	Active Markets for		Significant Other		Significant
	Identical Assets		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
U.S. Treasury and Agency Securities	$	—	$	19,787	$	—	$	19,787
Corporate Securities		—		—		—		—
Obligations of State and
Political Subdivisions		—		86,269		11,002		97,271
Mortgage-backed Securities-Residential		—		490,569		—		490,569
Equity Securities		673		—		353		1,026
Total Securities	$	673	$	596,625	$	11,355	$	608,653
Loans Held-for-Sale	$	—	$	9,054	$	—	$	9,054
Derivatives	$	—	$	511	$	—	$	511
Financial Liabilities Derivatives	$	—	$	392	$	—	$	392

	Fair Value Measurements at December 31, 2012 Using
	Quoted Prices in
	Active Markets for		Significant Other		Significant
	Identical Assets		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
U.S. Treasury and Agency Securities	$	—	$	23,472	$	—	$	23,472
Corporate Securities		—		—		—		—
Obligations of State and
Political Subdivisions		—		64,316		12,169		76,485
Mortgage-backed Securities-Residential		—		486,912		—		486,912
Equity Securities		380		—		353		733
Total Securities	$	380	$	574,700	$	12,522	$	587,602
Loans Held-for-Sale	$	—	$	16,641	$	—	$	16,641
Derivatives	$	—	$	187	$	—	$	187
Financial Liabilities Derivatives	$	—	$	178	$	—	$	178

Reconciliation of all Assets Measured at Fair Value on Recurring Basis, Using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2013 and 2012:

	Obligations of State
	and Political
	Subdivisions				Equity Securities				Corporate Securities
	2013		2012		2013		2012		2013		2012
Balance of Recurring Level 3 Assets at June 30	$	11,439	$	11,791	$	353	$	353	$	—	$	—
Total Gains or Losses (realized/unrealized)
Included in Earnings		(12)		9		—		—		—		—
Maturities / Calls		(425)		—		—		—		—		—
Purchases		—		—		—		—		—		—
Balance of Recurring Level 3 Assets at September 30	$	11,002	$	11,800	$	353	$	353	$	—	$	—

	Obligations of State
	and Political
	Subdivisions				Equity Securities				Corporate Securities
	2013		2012		2013		2012		2013		2012
Balance of Recurring Level 3 Assets at December 31	$	12,169	$	4,772	$	353	$	353	$	—	$	1,005
Total Gains or Losses (realized/unrealized)
Included in Earnings		(162)		60		—		—		—		—
Maturities / Calls		(1,005)		(697)		—		—		—		(1,005)
Purchases		—		7,665		—		—		—		—
Balance of Recurring Level 3 Assets at September 30	$	11,002	$	11,800	$	353	$	353	$	—	$	—

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

	Fair Value Measurements at September 30, 2013 Using
	Quoted Prices in
	Active Markets for		Significant Other		Significant
	Identical Assets		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Impaired Loans with Specific Allocations
Commercial and Industrial Loans	$	—	$	—	$	—	$	—
Commercial Real Estate Loans		—		—		1,257		1,257
Agricultural Loans		—		—		—		—
Other Real Estate
Commercial Real Estate		—		—		290		290

	Fair Value Measurements at December 31, 2012 Using
	Quoted Prices in
	Active Markets for		Significant Other		Significant
	Identical Assets		Observable Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Impaired Loans with Specific Allocations
Commercial and Industrial Loans	$	—	$	—	$	1,231	$	1,231
Commercial Real Estate Loans		—		—		1,497		1,497
Agricultural Loans		—		—		135		135
Other Real Estate
Commercial Real Estate		—		—		150		150

Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2013:

					Range
			Valuation		(Weighted
	Fair Value		Technique(s)	Unobservable Input(s)	Average)
Impaired Loans - Commercial	$	1,257	Sales comparison	Adjustment for physical	12%-80%
Real Estate Loans			approach	condition of comparable	(52)%
			Income approach	properties sold
			Cost approach	Adjustment for net operating
				income generated by the
				property
				Adjustment for investor rates
				of return
Other Real Estate - Commercial	$	290	Sales comparison	Adjustment for physical	50%
Real Estate Loans			approach	condition of comparable	(50)%
			Income approach	properties sold
			Cost approach	Adjustment for net operating
				income generated by the
				property
				Adjustment for investor rates
				of return

Carrying Amounts and Estimated Fair Values of Company's Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments not previously presented are provided in the table below for the periods ending September 30, 2013 and December 31, 2012.  Not all of the Company’s assets and liabilities are considered financial instruments, and therefore are not included in the table.  Because no active market exists for a significant portion of the Company’s financial instruments, fair value estimates were based on subjective judgments, and therefore cannot be determined with precision.

			Fair Value Measurements at
			September 30, 2013 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and Short-term Investments	$	64,671	$	46,657	$	18,014	$	—	$	64,671
Securities Held-to-Maturity		268		—		271		—		271
FHLB Stock and Other Restricted Stock		8,340		N/A		N/A		N/A		N/A
Loans, Net		1,265,721		—		—		1,270,263		1,270,263
Accrued Interest Receivable		7,402		—		1,906		5,496		7,402
Financial Liabilities:
Demand, Savings, and Money Market Deposits		(1,338,858)		(1,338,858)		—		—		(1,338,858)
Time Deposits		(332,181)		—		(335,093)		—		(335,093)
Short-term Borrowings		(102,792)		—		(102,792)		—		(102,792)
Long-term Debt		(88,762)		—		(85,026)		(5,287)		(90,313)
Accrued Interest Payable		(690)		—		(647)		(43)		(690)
Unrecognized Financial Instruments:
Commitments to Extend Credit		—		—		—		—		—
Standby Letters of Credit		—		—		—		—		—
Commitments to Sell Loans		—		—		—		—		—

			Fair Value Measurements at
			December 31, 2012 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and Short-term Investments	$	51,794	$	41,624	$	10,170	$	—	$	51,794
Securities Held-to-Maturity		346		—		351		—		351
FHLB Stock and Other Restricted Stock		8,340		N/A		N/A		N/A		N/A
Loans, Net		1,186,483		—		—		1,199,566		1,199,566
Accrued Interest Receivable		7,419		—		1,893		5,526		7,419
Financial Liabilities:
Demand, Savings, and Money Market Deposits		(1,311,748)		(1,311,748)		—		—		(1,311,748)
Time Deposits		(329,183)		—		(333,170)		—		(333,170)
Short-term Borrowings		(71,534)		—		(71,534)		—		(71,534)
Long-term Debt		(89,472)		—		(66,892)		(28,872)		(95,764)
Accrued Interest Payable		(1,275)		—		(829)		(446)		(1,275)
Unrecognized Financial Instruments:
Commitments to Extend Credit		—		—		—		—		—
Standby Letters of Credit		—		—		—		—		—
Commitments to Sell Loans		—		—		—		—		—