Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Measurement [Abstract]

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 June 30, 2014		Fair Value Measurements
			at June 30, 2014
Description			Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Government sponsored enterprises	$	11,091	$	-	$	11,091	$	-
Obligations of state and political subdivisions		52,573		-		52,573		-
GSE mortgage-backed securities		117,472		-		117,472		-
Collateralized mortgage obligations: residential		66,464		-		66,464		-
Collateralized mortgage obligations: commercial		27,018		-		27,018		-
Other asset-backed securities		25,085		-		25,085		-
Collateralized debt obligation		1,325		-		1,325		-

	Assets / Liabilities Measured at Fair Value at December 31, 2013		Fair Value Measurements
			at December 31, 2013
Description			Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Government sponsored enterprises	$	11,265	$	-	$	11,265	$	-
Obligations of state and political subdivisions		59,978		-		59,978		-
GSE mortgage-backed securities		145,965		-		145,965		-
Collateralized mortgage obligations: residential		70,887		-		70,887		-
Collateralized mortgage obligations: commercial		27,346		-		27,346		-
Other asset-backed securities		25,489		-		25,489		-
Collateralized debt obligation		735		-		735		-

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 June 30, 2014			Fair Value Measurements at June 30, 2014
Description				Level 1			Level 2			Level 3
Impaired loans		$	2,760		$	-		$	2,760		$	-
Other real estate			6,314			-			6,314			-

	Assets / Liabilities Measured at Fair Value at December 31, 2013		Fair Value Measurements at December 31, 2013
Description			Level 1		Level 2		Level 3
Impaired loans	$	1,973	$	-	$	1,973	$	-
Other real estate		6,687		-		6,687		-

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 June 30, 2014 and December 31, 2013 (in thousands):

			Fair Value Measurements at June 30, 2014 Using:
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	63,935	$	63,935	$	-	$	-
Securities available-for-sale		301,028		-		301,028		-
Securities held-to-maturity		148,927		-		148,559		-
Other investments		12,090		12,090		-		-
Loans, net		1,215,107		-		-		1,232,806
Cash surrender value of life insurance policies		13,544		-		13,544		-
Financial liabilities:
Non-interest-bearing deposits		389,734		-		389,734		-
Interest-bearing deposits		1,135,688		-		915,178		221,008
Securities sold under agreements to repurchase		67,574		67,574		-		-
Short-term Federal Home Loan Bank advances		35,000		-		35,000		-
Notes payable		26,990		-		-		28,082
Junior subordinated debentures		29,384		-		22,167		7,224

			Fair Value Measurements at December 31, 2013 Using:
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	59,731	$	59,731	$	-	$	-
Securities available-for-sale		341,665		-		341,665		-
Securities held-to-maturity		155,523		-		151,168		-
Other investments		11,526		11,526		-		-
Loans, net		1,128,775		-		-		1,139,740
Cash surrender value of life insurance policies		13,450		-		13,450		-
Financial liabilities:
Non-interest-bearing deposits		383,257		-		383,257		-
Interest-bearing deposits		1,135,546		-		895,346		241,359
Securities sold under agreements to repurchase		53,916		53,916		-		-
Short-term Federal Home Loan Bank advances		25,000		-		25,000		-
Notes payable		27,703		-		-		28,813
Junior subordinated debentures		29,384		-		22,167		7,776