Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of fair value assets and liabilities measured on recurring basis

The following table presents the balances of financial assets measured at fair value on a recurring basis at the dates indicated (dollars in thousands):



	Fair Value Measurements at March 31, 2017 Using
	Balance at March 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2017		Level 1		Level 2		Level 3
Assets:
Securities available for sale:
Federal agencies and GSEs	$	89,771	$	—	$	89,771	$	—
Mortgage-backed and CMOs	75,392		—		75,392		—
State and municipal	115,988		—		115,988		—
Corporate	9,373		—		9,373		—
Equity securities	2,043		—		2,043		—
Total	$	292,567	$	—	$	292,567	$	—



	Fair Value Measurements at December 31, 2016 Using
	Balance at December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2016		Level 1		Level 2		Level 3
Assets:
Securities available for sale:
Federal agencies and GSEs	$	104,054	$	—	$	104,054	$	—
Mortgage-backed and CMOs	79,493		—		79,493		—
State and municipal	147,515		—		147,515		—
Corporate	13,492		—		13,492		—
Equity securities	1,948		—		1,498		—
Total	$	346,502	$	—	$	346,052	$	—

Schedule of assets that were measured at fair value on a nonrecurring basis

The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis at the dates indicated (dollars in thousands):



	Fair Value Measurements at March 31, 2017 Using
	Balance at March 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2017		Level 1		Level 2		Level 3
Assets:
Loans held for sale	$	1,872	$	—	$	1,872	$	—
Impaired loans, net of valuation allowance	1,905		—		—		1,905
Other real estate owned, net	1,664		—		—		1,664



	Fair Value Measurements at December 31, 2016 Using
	Balance at December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2016		Level 1		Level 2		Level 3
Assets:
Loans held for sale	$	5,996	$	—	$	5,996	$	—
Impaired loans, net of valuation allowance	2,151		—		—		2,151
Other real estate owned, net	1,328		—		—		1,328

Schedule of quantitative information of assets measured at Level 3

The following tables summarize the Company's quantitative information about Level 3 fair value measurements at the dates indicated:

Quantitative Information About Level 3 Fair Value Measurements at March 31, 2017



Assets	Valuation Technique	Unobservable Input	Weighted Rate

Impaired loans	Discounted appraised value	Selling cost	8	%

Other real estate owned, net	Discounted appraised value	Selling cost	8	%

Quantitative Information About Level 3 Fair Value Measurements at December 31, 2016



Assets	Valuation Technique	Unobservable Input	Weighted Rate

Impaired loans	Discounted appraised value	Selling cost	8	%

Other real estate owned, net	Discounted appraised value	Selling cost	6	%

Schedule of carrying values and estimated fair values of the entity's financial instruments

The carrying values and estimated fair values of the Company's financial instruments at March 31, 2017 are as follows (dollars in thousands):



	Fair Value Measurements at March 31, 2017 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Balance
Financial Assets:
Cash and cash equivalents	$	94,790	$	94,790	$	—	$	—	$	94,790
Securities available for sale	292,567		—		292,567		—		292,567
Restricted stock	5,492		—		5,492		—		5,492
Loans held for sale	1,872		—		1,872		—		1,872
Loans, net of allowance	1,206,850		—		—		1,204,240		1,204,240
Bank owned life insurance	18,270		—		18,270		—		18,270
Accrued interest receivable	4,482		—		4,482		—		4,482

Financial Liabilities:
Deposits	$	1,416,104	$	—	$	1,044,872	$	366,866	$	1,411,738
Repurchase agreements	47,776		—		47,776		—		47,776
Long-term borrowings	9,985		—		—		10,110		10,110
Junior subordinated debt	27,749		—		—		25,987		25,987
Accrued interest payable	574		—		574		—		574

The carrying values and estimated fair values of the Company's financial instruments at December 31, 2016 are as follows (dollars in thousands):



	Fair Value Measurements at December 31, 2016 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Balance
Financial Assets:
Cash and cash equivalents	$	53,207	$	53,207	$	—	$	—	$	53,207
Securities available for sale	346,502		—		346,502		—		346,502
Restricted stock	6,224		—		6,224		—		6,224
Loans held for sale	5,996		—		5,996		—		5,996
Loans, net of allowance	1,152,020		—		—		1,136,961		1,136,961
Bank owned life insurance	18,163		—		18,163		—		18,163
Accrued interest receivable	5,083		—		5,083		—		5,083

Financial Liabilities:
Deposits	$	1,370,640	$	—	$	991,785	$	374,774	$	1,366,559
Repurchase agreements	39,166		—		39,166		—		39,166
Other short-term borrowings	20,000		—		20,000		—		20,000
Long-term borrowings	9,980		—		—		10,156		10,156
Junior subordinated debt	27,724		—		—		24,932		24,932
Accrued interest payable	623		—		623		—		623