Fair Value (Tables)

12 Months Ended

Dec. 31, 2015

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2015 and 2014:


				Fair Value Measurements at December 31, 2015 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	141,751		$	0	$	141,751		$	0
States and political subdivisions		171,819			0		171,819			0
Residential and multi-family mortgage		157,982			0		157,982			0
Corporate notes and bonds		18,688			0		18,688			0
Pooled trust preferred		3,413			0		0			3,413
Pooled SBA		51,409			0		51,409			0
Other equity securities		981			981		0			0

Total Securities Available For Sale	$	546,043		$	981	$	541,649		$	3,413

Interest Rate swaps:	$	131		$	0	$	131		$	0

Trading Securities:
Corporate equity securities	$	3,389		$	3,389	$	0		$	0
Mutual funds		750			750		0			0
Certificates of deposit		253			253		0			0
Corporate notes and bonds		130			130		0			0
U.S. Government sponsored entities		54			0		54			0
Total Trading Securities	$	4,576		$	4,522	$	54		$	0

Liabilities,
Interest rate swaps	$	(867	)	$	0	$	(867	)	$	0


				Fair Value Measurements at December 31, 2014 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	155,564		$	0	$	155,564		$	0
States and political subdivisions		181,002			0		181,002			0
Residential and multi-family mortgage		265,164			0		265,164			0
Corporate notes and bonds		19,430			0		19,430			0
Pooled trust preferred		905			0		0			905
Pooled SBA		62,653			0		62,653			0
Other equity securities		1,002			1,002		0			0

Total Securities Available For Sale	$	685,720		$	1,002	$	683,813		$	905

Trading Securities:
Corporate equity securities	$	3,044		$	3,044	$	0		$	0
Mutual funds		999			999		0			0
Certificates of deposit		253			253		0			0
Corporate notes and bonds		155			155		0			0
U.S. Government sponsored entities		54			0		54			0
Total Trading Securities	$	4,505		$	4,451	$	54		$	0

Liabilities,
Interest rate swaps	$	(946	)	$	0	$	(946	)	$	0

Securities Available for Sale Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2015:


	Pooled trust preferred
Balance, January 1, 2015	$	905
Total gains or (losses):
Included in other comprehensive income (loss)		2,508
Included in realized gains on available-for-sale securities		0
Sale of available-for-sale securities		0

Balance, December 31, 2015	$	3,413


	Pooled trust preferred
Balance, January 1, 2014	$	661
Total gains or (losses):
Included in other comprehensive income (loss)		244
Included in realized gains on available-for-sale securities		0
Sale of available-for-sale securities		0

Balance, December 31, 2014	$	905

Quantitative Information about Level 3 Fair Value Measurements

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2015:


	Fair value	Valuation Technique	Unobservable Inputs	Input Utilized
Pooled trust preferred	$3,413	Discounted cash flow	Collateral default rate Yield	1% in 2015; 0.5% in 2016 and thereafter 9%
			Prepayment speed	2.0% constant prepayment rate in 2015 and thereafter

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2014:


	Fair value	Valuation Technique	Unobservable Inputs	Input Utilized
Pooled trust preferred	$905	Discounted cash flow	Collateral default rate Yield	1% in 2015; 0.5% in 2016 and thereafter 11%
			Prepayment speed	2.0% constant prepayment rate in 2015 and thereafter

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

Assets and liabilities measured at fair value on a non-recurring basis are as follows at December 31, 2015 and 2014:


	Fair Value Measurements at December 31, 2015 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	2,247		0		0	$	2,247


	Fair Value Measurements at December 31, 2014 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	2,353		0		0	$	2,353
Commercial, industrial, and agricultural		2,820		0		0		2,820

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis

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 December 31, 2015:


	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	2,247	Sales comparison approach	Adjustment for differences between the comparable sales	25%—69% (36%)

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 December 31, 2014:


	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	2,353	Sales comparison approach	Adjustment for differences between the comparable sales	34%—100% (44%)
Impaired loans – commercial, industrial, and agricultural	$	2,820	Sales comparison approach	Adjustment for differences between the comparable sales	8%—49% (13%)

Carrying Amount and Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at December 31, 2015:


	Carrying Amount			Fair Value Measurement Using:									Total Fair Value
	Carrying Amount			Level 1			Level 2			Level 3			Total Fair Value
ASSETS
Cash and cash equivalents	$	27,261		$	27,261		$	0		$	0		$	27,261
Securities available for sale		546,043			981			541,649			3,413			546,043
Trading securities		4,576			4,522			54			0			4,576
Loans held for sale		1,381			0			1,438			0			1,438
Net loans		1,561,061			0			0			1,554,502			1,554,502
FHLB and other equity interests		15,921			n/a			n/a			n/a			n/a
Interest rate swaps		131			0			131			0			131
Accrued interest receivable		7,312			5			2,875			4,432			7,312

LIABILITIES
Deposits	$	(1,815,053	)	$	(1,630,888	)	$	(183,028	)	$	0			(1,813,916	)
FHLB and other borrowings		(220,515	)		0			(218,808	)		0			(218,808	)
Subordinated debentures		(20,620	)		0			(11,761	)		0			(11,761	)
Interest rate swaps		(867	)		0			(867	)		0			(867	)
Accrued interest payable		(766	)		(344	)		(404	)		(18	)		(766	)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2014:


	Carrying Amount			Fair Value Measurement Using:									Total Fair Value
	Carrying Amount			Level 1			Level 2			Level 3			Total Fair Value
ASSETS
Cash and cash equivalents	$	27,928		$	27,928		$	0		$	0		$	27,928
Interest bearing time deposits with other banks		225			0			224			0			224
Securities available for sale		685,720			1,002			683,813			905			685,720
Trading securities		4,505			4,296			209			0			4,505
Loans held for sale		887			0			938			0			938
Net loans		1,337,916			0			0			1,337,537			1,337,537
FHLB and other equity interests		6,695			n/a			n/a			n/a			n/a
Accrued interest receivable		7,441			5			3,503			3,933			7,441

LIABILITIES
Deposits	$	(1,847,079	)	$	(1,670,172	)	$	(176,036	)	$	0			(1,846,208	)
FHLB and other borrowings		(111,695	)		0			(111,821	)		0			(111,821	)
Subordinated debentures		(20,620	)		0			(11,395	)		0			(11,395	)
Interest rate swaps		(946	)		0			(946	)		0			(946	)
Accrued interest payable		(804	)		(358	)		(430	)		(16	)		(804	)