Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The table below presents information about certain assets and liabilities measured at fair value on a recurring basis (in thousands):



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at September 30, 2016
Description	September 30, 2016		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	31,521	$	—	$	31,521	$	—
GSE mortgage-backed securities	69,145		—		69,145		—
Collateralized mortgage obligations: residential	196,005		—		196,005		—
Collateralized mortgage obligations: commercial	3,465		—		3,465		—
Mutual funds	2,125		2,125		—		—
Corporate debt securities	13,884		—		13,884		—
Total available-for-sale securities	$	316,145	$	2,125	$	314,020	$	—

Derivative assets	$	55	$	—	$	55	$	—



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2015
Description	December 31, 2015		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	31,493	$	—	$	31,493	$	—
GSE mortgage-backed securities	87,038		—		87,038		—
Collateralized mortgage obligations: residential	192,088		—		192,088		—
Collateralized mortgage obligations: commercial	5,448		—		5,448		—
Mutual funds	2,092		2,092		—		—
Total available-for-sale securities	$	318,159	$	2,092	$	316,067	$	—

Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis and are included in the table below (in thousands). Impaired loans are Level 2 assets measured using appraisals from external parties of the collateral less any prior liens. Other real estate properties are also Level 2 assets measured using appraisals from external parties.



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at September 30, 2016
Description	September 30, 2016		Level 1		Level 2		Level 3
Impaired loans	$	16,033	$	—	$	16,033	$	—
Other real estate	2,317		—		2,317		—

	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2015
Description	December 31, 2015		Level 1		Level 2		Level 3
Impaired loans	$	17,487	$	—	$	17,487	$	—
Other real estate	4,187		—		4,187		—

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are as follows at September 30, 2016 and December 31, 2015 (in thousands):



			Fair Value Measurements at September 30, 2016 Using:
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks, interest-bearing deposits in banks and federal funds sold	$	126,667	$	126,667	$	—	$	—
Securities available-for-sale	316,145		2,125		314,020		—
Securities held-to-maturity	103,412		—		106,009		—
Other investments	11,339		11,339		—		—
Loans, net	1,249,532		—		16,033		1,239,663
Cash surrender value of life insurance policies	14,272		—		14,272		—
Financial liabilities:
Non-interest-bearing deposits	403,301		—		403,301		—
Interest-bearing deposits	1,181,906		—		1,024,381		157,207
Securities sold under agreements to repurchase	95,210		95,210		—		—
Long-term Federal Home Loan Bank advances	25,531		—		—		26,153
Junior subordinated debentures	22,167		—		22,167		—



			Fair Value Measurements at December 31, 2015 Using:
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks, interest-bearing deposits in banks and federal funds sold	$	89,201	$	89,201	$	—	$	—
Securities available-for-sale	318,159		2,092		316,067		—
Securities held-to-maturity	116,792		—		117,698		—
Other investments	11,188		11,188		—		—
Loans, net	1,244,634		—		17,487		1,232,497
Cash surrender value of life insurance policies	13,622		—		13,622		—
Financial liabilities:
Non-interest-bearing deposits	374,261		—		374,261		—
Interest-bearing deposits	1,176,589		—		1,007,137		168,633
Securities sold under agreements to repurchase	85,957		85,957		—		—
Short-term Federal Home Loan Bank advances	25,000		—		25,000		—
Long-term Federal Home Loan Bank advances	25,851		—		—		26,508
Junior subordinated debentures	22,167		—		22,167		—