Fair Value Measurements and Disclosures (Tables)

12 Months Ended

Dec. 31, 2014

Assets Measured at Fair Value on a Recurring Basis

The balances of available for sale securities, which are the only assets measured at fair value on a recurring basis, by level within the fair value hierarchy and by investment type, as of December 31, 2014, 2013 and 2012, were as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1	Level 2		Level 3
December 31, 2014:
U.S. Treasuries	$	29,654	$	$	29,654	$
U.S. Government agencies		117,989			117,989
Mortgage-backed securities		35,817			35,817
States and political subdivisions		31,012			31,012
Equity securities		650			650
Total	$	215,122	$	$	215,122	$
December 31, 2013:
U.S. Treasuries	$	43,648	$	$	43,648	$
U.S. Government agencies		145,805			145,805
Mortgage-backed securities		50,326			50,326
States and political subdivisions		35,011			35,011
Equity securities		650			650
Total	$	275,440	$	$	275,440	$
December 31, 2012:
U.S. Treasuries	$	54,096	$	$	54,096	$
U.S. Government agencies		149,098			149,098
Mortgage-backed securities		17,441			17,441
States and political subdivisions		37,591			37,591
Equity securities		650			650
Total	$	258,876	$	$	258,876	$

Carrying Value and Estimated Fair Value of Financial Assets and Financial Liabilities

The carrying value and estimated fair value of assets and liabilities, by level within the fair value hierarchy, at December 31, 2014, 2013 and 2012, are as follows (in thousands):

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
December 31, 2014:
Financial Assets:
Cash and due from banks	$	23,556	$	23,556	$		$		$	23,556
Available for sale securities		215,122				215,122				215,122
Held to maturity securities		17,784				17,859				17,859
Other investments		2,962		2,962						2,962
Federal Home Loan Bank stock		2,504				2,504				2,504
Loans, net		353,201						355,004		355,004
Other real estate		7,646						7,646		7,646
Cash surrender value of life insurance		18,145				18,145				18,145
Financial Liabilities:
Deposits:
Non-interest bearing		103,607		103,607						103,607
Interest bearing		289,107						289,466		289,466
Federal funds purchased and securities sold under agreements to repurchase		124,206		124,206						124,206
Borrowings from Federal Home Loan Bank		38,708				40,720				40,720

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
December 31, 2013:
Financial Assets:
Cash and due from banks	$	36,264	$	36,264	$		$		$	36,264
Available for sale securities		275,440				275,440				275,440
Held to maturity securities		11,142				10,686				10,686
Other investments		3,262		3,262						3,262
Federal Home Loan Bank stock		3,834				3,834				3,834
Loans, net		366,415						369,117		369,117
Other real estate		9,630						9,630		9,630
Cash surrender value of life insurance		17,456				17,456				17,456
Financial Liabilities:
Deposits:
Non-interest bearing		107,117		107,117						107,117
Interest bearing		321,441						322,535		322,535
Federal funds purchased and securities sold under agreements to repurchase		139,639		139,639						139,639
Borrowings from Federal Home Loan Bank		77,684				79,051				79,051

December 31, 2012:
Financial Assets:
Cash and due from banks	$	54,020	$	54,020	$		$		$	54,020
Available for sale securities		258,876				258,876				258,876
Held to maturity securities		7,125				7,225				7,225
Other investments		3,450		3,450						3,450
Federal Home Loan Bank stock		2,380				2,380				2,380
Loans, net		422,226						425,627		425,627
Other real estate		7,008						7,008		7,008
Cash surrender value of life insurance		16,861				16,861				16,861
Financial Liabilities:
Deposits:
Non-interest bearing		102,609		102,609						102,609
Interest bearing		373,110						376,209		376,209
Federal funds purchased and securities sold under agreements to repurchase		194,234		194,234						194,234
Borrowings from Federal Home Loan Bank		7,912				10,271				10,271

Impaired Loans [Member]

Assets Measured at Fair Value on a Non-Recurring Basis

Impaired loans, which are measured at fair value on a non-recurring basis, by level within the fair value hierarchy as of December 31, 2014, 2013 and 2012 were as follows (in thousands):

			Fair Value Measurements Using
December 31:	Total		Level 1	Level 2	Level 3
2014	$	10,610	$	$	$	10,610
2013		18,831				18,831
2012		16,030				16,030

Other Real Estate [Member]

Assets Measured at Fair Value on a Non-Recurring Basis

Other real estate, which is measured at fair value on a non-recurring basis, by level within the fair value hierarchy as of December 31, 2014, 2013 and 2012 are as follows (in thousands):

			Fair Value Measurements Using
December 31:	Total		Level 1	Level 2	Level 3
2014	$	7,646	$	$	$	7,646
2013		9,630				9,630
2012		7,008				7,008

Changes in Fair Value

The following table presents a summary of changes in the fair value of other real estate which is measured using Level 3 inputs (in thousands):

	2014		2013		2012
Balance, beginning of year	$	9,630	$	7,008	$	6,153
Loans transferred to ORE		1,345		4,537		2,576
Sales		(2,068)		(1,188)		(1,568)
Writedowns		(1,261)		(670)		(153)
Insurance proceeds from casualty loss				(57)
Balance, end of year	$	7,646	$	9,630	$	7,008