Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2015

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		Fair Value Measurements at March 31, 2015
Description	at March 31, 2015		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	42,777	$	-	$	42,777	$	-
GSE mortgage-backed securities		104,788		-		104,788		-
Collateralized mortgage obligations: residential		131,167		-		131,167		-
Collateralized mortgage obligations: commercial		17,483		-		17,483		-
Collateralized debt obligation		1,352		-		1,352		-
Mutual funds		2,123		2,123		-		-

	Assets / Liabilities Measured at Fair Value		Fair Value Measurements at December 31, 2014
Description	at December 31, 2014		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Government sponsored enterprises	$	10,227	$	-	$	10,227	$	-
Obligations of state and political subdivisions		44,605		-		44,605		-
GSE mortgage-backed securities		109,103		-		109,103		-
Collateralized mortgage obligations: residential		60,839		-		60,839		-
Collateralized mortgage obligations: commercial		24,545		-		24,545		-
Other asset-backed securities		24,343		-		24,343		-
Collateralized debt obligation		1,218		-		1,218		-
Mutual funds		2,104		2,104		-		-

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		Fair Value Measurements at March 31, 2015
Description	at March 31, 2015		Level 1		Level 2		Level 3
Impaired loans	$	5,540	$	-	$	5,540	$	-
Other real estate		4,589		-		4,589		-

	Assets / Liabilities Measured at Fair Value		Fair Value Measurements at December 31, 2014
Description	at December 31, 2014		Level 1		Level 2		Level 3
Impaired loans	$	5,051	$	-	$	5,051	$	-
Other real estate		4,234		-		4,234		-

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, 2015 and December 31, 2014 (in thousands):

			Fair Value Measurements at March 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	$	104,402	$	104,402	$	-	$	-
Securities available-for-sale		299,690		2,123		297,567		-
Securities held-to-maturity		137,592		-		139,462		-
Other investments		9,644		9,644		-		-
Loans, net		1,294,869		-		5,540		1,298,787
Cash surrender value of life insurance policies		13,735		-		13,735		-
Financial liabilities:
Non-interest-bearing deposits		421,897		-		421,897		-
Interest-bearing deposits		1,194,201		-		944,876		249,445
Securities sold under agreements to repurchase		87,346		87,346		-		-
Short-term Federal Home Loan Bank advances		25,000		-		25,000		-
Long-term Federal Home Loan Bank advances		26,171		-		-		27,261
Junior subordinated debentures		22,167		-		22,167		-

			Fair Value Measurements at December 31, 2014 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	$	86,872	$	86,872	$	-	$	-
Securities available-for-sale		276,984		2,104		274,880		-
Securities held-to-maturity		141,201		-		141,593		-
Other investments		9,990		9,990		-		-
Loans, net		1,273,205		-		5,051		1,277,882
Cash surrender value of life insurance policies		13,659		-		13,659		-
Financial liabilities:
Non-interest-bearing deposits		390,863		-		390,863		-
Interest-bearing deposits		1,194,371		-		943,255		251,291
Securities sold under agreements to repurchase		62,098		62,098		-		-
Short-term Federal Home Loan Bank advances		25,000		-		25,000		-
Long-term Federal Home Loan Bank advances		26,277		-		-		27,193
Junior subordinated debentures		22,167		-		22,167		-

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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