Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [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, 2014 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
U.S. Treasury and Agency Securities	$	—	$	19,363	$	—	$	19,363
Corporate Securities	—		—		—		—
Obligations of State and Political Subdivisions	—		130,409		10,120		140,529
Mortgage-backed Securities-Residential	—		415,496		—		415,496
Equity Securities	—		—		353		353
Total Securities	$	—	$	565,268	$	10,473	$	575,741
Loans Held-for-Sale	$	—	$	7,590	$	—	$	7,590
Derivative Assets	$	—	$	470	$	—	$	470
Derivative Liabilities	$	—	$	412	$	—	$	412

	Fair Value Measurements at December 31, 2013 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)		Total
Assets:
U.S. Treasury and Agency Securities	$	—	$	18,952	$	—	$	18,952
Corporate Securities	—		—		—		—
Obligations of State and Political Subdivisions	—		102,665		10,832		113,497
Mortgage-backed Securities-Residential	—		473,230		—		473,230
Equity Securities	—		—		353		353
Total Securities	$	—	$	594,847	$	11,185	$	606,032
Loans Held-for-Sale	$	—	$	9,265	$	—	$	9,265
Derivative Assets	$	—	$	866	$	—	$	866
Derivative Liabilities	$	—	$	737	$	—	$	737

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

The tables below present 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, 2014 and 2013:

	Obligations of State and Political Subdivisions						Equity Securities				Corporate Securities
	2014			2013			2014		2013		2014		2013
Balance of Recurring Level 3 Assets at July 1	$	10,562		$	11,439		$	353	$	353	$	—	$	—
Total Gains or Losses (realized/unrealized) Included in Earnings	(12		)	(12		)	—		—		—		—
Maturities / Calls	(430		)	(425		)	—		—		—		—
Purchases	—			—			—		—		—		—
Balance of Recurring Level 3 Assets at September 30	$	10,120		$	11,002		$	353	$	353	$	—	$	—

	Obligations of State and Political Subdivisions						Equity Securities				Corporate Securities
	2014			2013			2014		2013		2014		2013
Balance of Recurring Level 3 Assets at January 1	$	10,832		$	12,169		$	353	$	353	$	—	$	—
Total Gains or Losses (realized/unrealized) Included in Earnings	143			(162		)	—		—		—		—
Maturities / Calls	(855		)	(1,005		)	—		—		—		—
Purchases	—			—			—		—		—		—
Balance of Recurring Level 3 Assets at September 30	$	10,120		$	11,002		$	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, 2014 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)		Total
Assets:
Impaired Loans with Specific Allocations
Commercial and Industrial Loans	$	—	$	—	$	2	$	2
Commercial Real Estate Loans	—		—		1,223		1,223
Agricultural Loans	—		—		—		—
Other Real Estate
Commercial Real Estate	—		—		83		83

	Fair Value Measurements at December 31, 2013 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)		Total
Assets:
Impaired Loans with Specific Allocations
Commercial and Industrial Loans	$	—	$	—	$	—	$	—
Commercial Real Estate Loans	—		—		1,346		1,346
Agricultural Loans	—		—		—		—
Other Real Estate
Commercial Real Estate	—		—		20		20

Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2014 and December 31, 2013:

September 30, 2014	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired Loans - Commercial and Industrial Loans	$	2	Sales comparison approach	Adjustment for differences between comparable sales	52%-90% (71%)
Impaired Loans - Commercial Real Estate Loans	$	1,223	Sales comparison approach	Adjustment for physical condition of comparable properties sold	12%-80% (63%)
			Income approach	Adjustment for net operating income generated by the property
			Cost approach	Adjustment for investor rates of return
Other Real Estate - Commercial Real Estate Loans	$	83	Sales comparison approach	Adjustment for physical condition of comparable properties sold	55% (55%)
			Income approach	Adjustment for net operating income generated by the property
			Cost approach	Adjustment for investor rates of return

December 31, 2013	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired Loans - Commercial Real Estate Loans	$	1,346	Sales comparison approach	Adjustment for physical condition of comparable properties sold	12%-80% (53%)
			Income approach	Adjustment for net operating income generated by the property
			Cost approach	Adjustment for investor rates of return
Other Real Estate - Commercial Real Estate Loans	$	20	Sales comparison approach	Adjustment for physical condition of comparable properties sold	50% (50%)
			Income approach	Adjustment for net operating income generated by the property
			Cost approach	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 tables below for the periods ending September 30, 2014 and December 31, 2013. 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, 2014 Using
	Carrying Value			Level 1			Level 2			Level 3			Total
Financial Assets:
Cash and Short-term Investments	$	87,267		$	37,427		$	49,840		$	—		$	87,267
Securities Held-to-Maturity	184			—			186			—			186
FHLB Stock and Other Restricted Stock	9,096			N/A			N/A			N/A			N/A
Loans, Net	1,415,932			—			—			1,414,237			1,414,237
Accrued Interest Receivable	8,296			—			2,233			6,063			8,296
Financial Liabilities:
Demand, Savings, and Money Market Deposits	(1,430,833		)	(1,430,833		)	—			—			(1,430,833		)
Time Deposits	(333,638		)	—			(329,839		)	—			(329,839		)
Short-term Borrowings	(120,510		)	—			(120,510		)	—			(120,510		)
Long-term Debt	(87,576		)	—			(83,331		)	(5,387		)	(88,718		)
Accrued Interest Payable	(673		)	—			(625		)	(48		)	(673		)
Unrecognized Financial Instruments:
Commitments to Extend Credit	—			—			—			—			—
Standby Letters of Credit	—			—			—			—			—
Commitments to Sell Loans	—			—			—			—			—

				Fair Value Measurements at December 31, 2013 Using
	Carrying Value			Level 1			Level 2			Level 3			Total
Financial Assets:
Cash and Short-term Investments	$	60,232		$	37,370		$	22,862		$	—		$	60,232
Securities Held-to-Maturity	268			—			271			—			271
FHLB Stock and Other Restricted Stock	9,004			N/A			N/A			N/A			N/A
Loans, Net	1,366,452			—			—			1,370,339			1,370,339
Accrued Interest Receivable	7,470			—			1,918			5,552			7,470
Financial Liabilities:
Demand, Savings, and Money Market Deposits	(1,463,122		)	(1,463,122		)	—			—			(1,463,122		)
Time Deposits	(349,034		)	—			(351,707		)	—			(351,707		)
Short-term Borrowings	(53,533		)	—			(53,533		)	—			(53,533		)
Long-term Debt	(87,237		)	—			(83,329		)	(5,311		)	(88,640		)
Accrued Interest Payable	(777		)	—			(732		)	(45		)	(777		)
Unrecognized Financial Instruments:
Commitments to Extend Credit	—			—			—			—			—
Standby Letters of Credit	—			—			—			—			—
Commitments to Sell Loans	—			—			—			—			—