Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017
Description	March 31, 2017		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	25,611	$	—	$	25,611	$	—
GSE mortgage-backed securities	80,026		—		80,026		—
Collateralized mortgage obligations: residential	227,514		—		227,514		—
Collateralized mortgage obligations: commercial	2,991		—		2,991		—
Mutual funds	2,059		2,059		—		—
Corporate debt securities	19,602		—		19,602		—
Total available-for-sale securities	$	357,803	$	2,059	$	355,744	$	—

Derivative assets	$	1,002	$	—	$	1,002	$	—



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2016
Description	December 31, 2016		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	29,141	$	—	$	29,141	$	—
GSE mortgage-backed securities	73,578		—		73,578		—
Collateralized mortgage obligations: residential	220,202		—		220,202		—
Collateralized mortgage obligations: commercial	3,082		—		3,082		—
Mutual funds	2,059		2,059		—		—
Corporate debt securities	13,811		—		13,811		—
Total available-for-sale securities	$	341,873	$	2,059	$	339,814	$	—

Derivative assets	$	989	$	—	$	989	$	—

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 March 31, 2017
Description	March 31, 2017		Level 1		Level 2		Level 3
Impaired loans	$	27,051	$	—	$	27,051	$	—
Other real estate	1,643		—		1,643		—

	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2016
Description	December 31, 2016		Level 1		Level 2		Level 3
Impaired loans	$	26,956	$	—	$	26,956	$	—
Other real estate	2,175		—		2,175		—

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 March 31, 2017 and December 31, 2016 (in thousands):



			Fair Value Measurements at March 31, 2017 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	$	78,471	$	78,471	$	—	$	—
Securities available-for-sale	357,803		2,059		355,744		—
Securities held-to-maturity	91,242		—		91,767		—
Other investments	11,362		11,362		—		—
Loans, net	1,247,422		—		27,051		1,225,251
Cash surrender value of life insurance policies	14,398		—		14,398		—
Derivative asset	1,002		—		1,002		—
Financial liabilities:
Non-interest-bearing deposits	426,998		—		426,998		—
Interest-bearing deposits	1,145,946		—		996,201		148,598
Securities sold under agreements to repurchase	89,807		89,807		—		—
Long-term Federal Home Loan Bank advances	25,318		—		25,614		—
Junior subordinated debentures	22,167		—		22,167		—



			Fair Value Measurements at December 31, 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	$	82,228	$	82,228	$	—	$	—
Securities available-for-sale	341,873		2,059		339,814		—
Securities held-to-maturity	98,211		—		98,261		—
Other investments	11,355		11,355		—		—
Loans, net	1,259,710		—		26,956		1,236,133
Cash surrender value of life insurance policies	14,335		—		14,335		—
Derivative asset	989		—		989		—
Financial liabilities:
Non-interest-bearing deposits	414,921		—		414,921		—
Interest-bearing deposits	1,164,509		—		1,012,633		150,879
Securities sold under agreements to repurchase	94,461		94,461		—		—
Long-term Federal Home Loan Bank advances	25,424		—		25,808		—
Junior subordinated debentures	22,167		—		22,167		—