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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2016
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, 2016 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
 
$
—

 
$
—

 
$
—

 
$
—

Obligations of State and Political Subdivisions
 
—

 
239,552

 
7,658

 
247,210

Mortgage-backed Securities-Residential
 
—

 
485,348

 
—

 
485,348

Equity Securities
 
—

 
—

 
353

 
353

Total Securities
 
$
—

 
$
724,900

 
$
8,011

 
$
732,911

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$
—

 
$
12,967

 
$
—

 
$
12,967

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$
—

 
$
4,208

 
$
—

 
$
4,208

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$
—

 
$
4,535

 
$
—

 
$
4,535

 
 
Fair Value Measurements at December 31, 2015 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
 
$
—

 
$
9,898

 
$
—

 
$
9,898

Obligations of State and Political Subdivisions
 
—

 
194,608

 
9,020

 
203,628

Mortgage-backed Securities-Residential
 
—

 
423,961

 
—

 
423,961

Equity Securities
 
—

 
—

 
353

 
353

Total Securities
 
$
—

 
$
628,467

 
$
9,373

 
$
637,840

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$
—

 
$
10,762

 
$
—

 
$
10,762

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$
—

 
$
1,201

 
$
—

 
$
1,201

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$
—

 
$
1,232

 
$
—

 
$
1,232
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, 2016 and 2015:
 
 
Obligations of State and Political Subdivisions
 
Equity Securities
 
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
Balance of Recurring Level 3 Assets at July 1
 
$
8,213

 
$
9,521

 
$
353

 
$
353

Total Gains or Losses (realized/unrealized) Included in Other Comprehensive Income
 
—

 
25

 
—

 
—

Maturities / Calls
 
(555
)
 
(540
)
 
—

 
—

Purchases
 
—

 
—

 
—

 
—

Balance of Recurring Level 3 Assets at September 30
 
$
7,658

 
$
9,006

 
$
353

 
$
353


 

Obligations of State and Political Subdivisions

Equity Securities
 

2016

2015

2016

2015













Balance of Recurring Level 3 Assets at January 1

$
9,020


$
10,141


$
353


$
353

Total Gains or Losses (realized/unrealized) Included in Other Comprehensive Income

38


(20
)

—


—

Maturities / Calls

(1,400
)

(1,115
)

—


—

Purchases

—


—


—


—

Balance of Recurring Level 3 Assets at September 30

$
7,658


$
9,006


$
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, 2016 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
 
 

 
 

 
 

 
 

Commercial and Industrial Loans
 
$
—

 
$
—

 
$
17

 
$
17

Commercial Real Estate Loans
 
—

 
—

 
768

 
768

Agricultural Loans
 
—

 
—

 
450

 
450

Other Real Estate
 
 

 
 

 
 
 
 

Commercial Real Estate
 
—

 
—

 
—

 
—

 
 
 
Fair Value Measurements at December 31, 2015 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
 
 

 
 

 
 

 
 

Commercial and Industrial Loans
 
$
—

 
$
—

 
$
15

 
$
15

Commercial Real Estate Loans
 
—

 
—

 
960

 
960

Other Real Estate
 
 

 
 

 
 

 
 

Commercial Real Estate
 
—

 
—

 
—

 
—
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, 2016 and December 31, 2015:
September 30, 2016
 
Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range (Weighted Average)

 








Impaired Loans - Commercial and Industrial Loans
 
$
17

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
100%-0%
(80%)
Impaired Loans - Commercial Real Estate Loans
 
$
768


Sales comparison approach

Adjustment for physical condition of comparable properties sold

77%-30%
(49%)
Impaired Loans - Agricultural Loans
 
$
450

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
 32%
(32%)

December 31, 2015
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range (Weighted Average)
 
 
 
 
 
 
 
 
 
Impaired Loans - Commercial and Industrial Loans
 
$
15

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
100%-82%
(82%)
Impaired Loans - Commercial Real Estate Loans
 
$
960

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
86%-30%
(75%)
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, 2016 and December 31, 2015. Not all of the Company’s assets and liabilities are considered financial instruments, and therefore are not included in the tables. 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, 2016 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
55,528

 
$
38,329

 
$
17,199

 
$
—

 
$
55,528

Securities Held-to-Maturity
 
—

 
—

 
—

 
—

 
—

Loans, Net
 
1,985,991

 
—

 
—

 
1,989,264

 
1,989,264

FHLB Stock and Other Restricted Stock
 
13,048

 
N/A

 
N/A

 
N/A

 
N/A

Accrued Interest Receivable
 
11,448

 
—

 
3,472

 
7,976

 
11,448

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(1,896,142
)
 
(1,896,142
)
 
—

 
—

 
(1,896,142
)
Time Deposits
 
(433,521
)
 
—

 
(432,327
)
 
—

 
(432,327
)
Short-term Borrowings
 
(158,528
)
 
—

 
(158,528
)
 
—

 
(158,528
)
Long-term Debt
 
(120,582
)
 
—

 
(110,278
)
 
(10,665
)
 
(120,943
)
Accrued Interest Payable
 
(724
)
 
—

 
(711
)
 
(13
)
 
(724
)
 
 
 
 
 
Fair Value Measurements at
December 31, 2015 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
52,009

 
$
36,062

 
$
15,947

 
$
—

 
$
52,009

Securities Held-to-Maturity
 
95

 
—

 
95

 
—

 
95

Loans, Net
 
1,548,934

 
—

 
—

 
1,551,497

 
1,551,497

FHLB Stock and Other Restricted Stock
 
8,571

 
N/A

 
N/A

 
N/A

 
N/A

Accrued Interest Receivable
 
8,803

 
—

 
2,722

 
6,081

 
8,803

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(1,520,340
)
 
(1,520,340
)
 
—

 
—

 
(1,520,340
)
Time Deposits
 
(306,036
)
 
—

 
(305,965
)
 
—

 
(305,965
)
Short-term Borrowings
 
(177,717
)
 
—

 
(177,717
)
 
—

 
(177,717
)
Long-term Debt
 
(95,606
)
 
—

 
(90,473
)
 
(5,538
)
 
(96,011
)
Accrued Interest Payable
 
(676
)
 
—

 
(668
)
 
(8
)
 
(676
)