Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018
Description	March 31, 2018		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	20,193	$	—	$	20,193	$	—
GSE mortgage-backed securities	55,511		—		55,511		—
Collateralized mortgage obligations: residential	188,007		—		188,007		—
Collateralized mortgage obligations: commercial	2,183		—		2,183		—
Mutual funds	2,026		2,026		—		—
Corporate debt securities	26,050		—		26,050		—
Total available-for-sale securities	$	293,970	$	2,026	$	291,944	$	—

Derivative assets	$	1,387	$	—	$	1,387	$	—



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2017
Description	December 31, 2017		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	22,809	$	—	$	22,809	$	—
GSE mortgage-backed securities	59,124		—		59,124		—
Collateralized mortgage obligations: residential	198,155		—		198,155		—
Collateralized mortgage obligations: commercial	2,240		—		2,240		—
Mutual funds	2,061		2,061		—		—
Corporate debt securities	24,802		—		24,802		—
Total available-for-sale securities	$	309,191	$	2,061	$	307,130	$	—

Derivative assets	$	1,078	$	—	$	1,078	$	—

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

The following tables present the Company's financial assets that are measured at fair values on a nonrecurring basis (in thousands):



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at March 31, 2018
Description	March 31, 2018		Level 1		Level 2		Level 3
Impaired loans	$	13,758	$	—	$	—	$	13,758
Loans held for sale	1,117		—		1,117		—
Other real estate	1,803		—		—		1,803
Assets held for sale	3,995		—		3,995		—

	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2017
Description	December 31, 2017		Level 1		Level 2		Level 3
Impaired loans	$	10,227	$	—	$	—	$	10,227
Loans held for sale	15,737		—		15,737		—
Other real estate	2,001		—		—		2,001
Assets held for sale	3,572		—		3,572		—

Shcedule of Significant Observable Inputs Used in Fair Value Measurement of Level 3 Assets

The following table shows the significant unobservable inputs used in the fair value measurement of Level 3 assets:



	Fair Value at
Description	March 31, 2018		Technique	Unobservable Inputs
Impaired loans	$	13,758	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	1,803		Third party appraisals	Collateral discounts and estimated costs to sell

	Fair Value at
Description	December 31, 2017		Technique	Unobservable Inputs
Impaired loans	$	10,227	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	2,001		Third party appraisals	Collateral discounts and estimated costs to sell

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, 2018 and December 31, 2017 (in thousands):



			Fair Value Measurements at March 31, 2018 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	$	211,486	$	211,486	$	—	$	—
Securities held-to-maturity	73,255		—		72,307		—
Other investments	12,896		12,896		—		—
Loans, net	1,111,884		—		—		1,115,895
Cash surrender value of life insurance policies	14,948		—		14,948		—
Financial liabilities:
Non-interest-bearing deposits	427,504		—		427,504		—
Interest-bearing deposits	1,076,433		—		901,846		171,757
Securities sold under agreements to repurchase	33,026		33,026		—		—
Short-term Federal Home Loan Bank advances	27,500		27,500		—		—
Long-term Federal Home Loan Bank advances	10,016		—		9,991		—
Junior subordinated debentures	22,167		—		22,167		—



			Fair Value Measurements at December 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	$	152,964	$	152,964	$	—	$	—
Securities held-to-maturity	81,052		—		80,920		—
Other investments	12,214		12,214		—		—
Loans, net	1,156,538		—		—		1,160,614
Cash surrender value of life insurance policies	14,896		—		14,896		—
Financial liabilities:
Non-interest-bearing deposits	416,547		—		416,547		—
Interest-bearing deposits	1,063,142		—		881,139		179,910
Securities sold under agreements to repurchase	67,133		67,133		—		—
Short-term Federal Home Loan Bank advances	40,000		40,000		—		—
Long-term Federal Home Loan Bank advances	10,021		—		10,011		—
Junior subordinated debentures	22,167		—		22,167		—