Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value

Assets measured at fair value are summarized below.

	Fair Value Measurements at June 30, 2014 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	45,250	$	—
Obligations of states and political subdivisions		—		84,604		—
Mortgage-backed securities in government sponsored entities		—		67,319		—
Equity securities in financial institutions		—		507		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	14,309
Other real estate owned		—		—		282

	Fair Value Measurements at December 31, 2013 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	51,560	$	—
Obligations of states and political subdivisions		—		80,625		—
Mortgage-backed securities in government sponsored entities		—		66,979		—
Equity securities in financial institutions		—		449		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	15,548
Other real estate owned		—		—		173

Quantitative Information about Level 3 Fair Value Measurements

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2014.

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Technique	Unobservable Input	Range
June 30, 2014
Impaired loans	$	14,309	Appraisal of collateral	Appraisal adjustments	10%  -  30%
				Liquidation expense	0%  -  10%
				Holding period	0  -  30 months
			Discounted cash flows	Discount rates	3.8%  -  8.3%
Other real estate owned	$	282	Appraisal of collateral	Appraisal adjustments	10%  -  30%
				Liquidation expense	0%  -  10%

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2013.

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Technique	Unobservable Input	Range
December 31, 2013
Impaired loans	$	15,548	Appraisal of collateral	Appraisal adjustments	10%  -  30%
				Liquidation expense	0%  -  10%
				Holding period	0  -  30 months
			Discounted cash flows	Discount rates	2%  -  8.5%
Other real estate owned	$	173	Appraisal of collateral	Appraisal adjustments	10%  -  30%
				Liquidation expense	0%  -  10%

Carrying Amount and Fair Values of Financial Instruments

The carrying amount and fair values of financial instruments are as follows.

	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
June 30, 2014
Financial Assets:
Cash and due from financial institutions	$	49,893	$	49,893	$	49,893	$	—	$	—
Securities available for sale		197,680		197,680		—		197,680		—
Other securities		12,548		12,548		12,548		—		—
Loans, held for sale		2,168		2,168		2,168		—		—
Premises held for sale		675		675		675		—		—
Loans, net of allowance for loan losses		852,583		867,279		—		—		867,279
Bank owned life insurance		19,400		19,400		19,400		—		—
Accrued interest receivable		3,555		3,555		3,555		—		—
Financial Liabilities:
Nonmaturing deposits		757,700		757,700		757,700		—		—
Time deposits		221,436		222,770		—		—		222,770
Federal Home Loan Bank advances		37,500		37,811		—		—		37,811
Securities sold under agreement to repurchase		17,881		17,881		17,881		—		—
Subordinated debentures		29,427		23,401		—		—		23,401
Accrued interest payable		135		135		135		—		—

	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
December 31, 2013
Financial Assets:
Cash and due from financial institutions	$	33,883	$	33,883	$	33,883	$	—	$	—
Securities available for sale		199,613		199,613		—		199,613		—
Other securities		15,424		15,424		15,424		—		—
Loans, held for sale		438		438		438		—		—
Loans, net of allowance for loan losses		844,713		861,252		—		—		861,252
Bank owned life insurance		19,145		19,145		19,145		—		—
Accrued interest receivable		3,881		3,881		3,881		—		—
Financial Liabilities:
Nonmaturing deposits		706,126		706,126		706,126		—		—
Time deposits		236,349		237,837		—		—		237,837
Federal Home Loan Bank advances		37,726		38,767		—		—		38,767
Securities sold under agreement to repurchase		20,053		20,053		20,053		—		—
Subordinated debentures		29,427		20,605		—		—		20,605
Accrued interest payable		156		156		156		—		—