Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value

Assets measured at fair value are summarized below.

	Fair Value Measurements at June 30, 2015 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	$	—	$	39,939	$	—
Obligations of states and political subdivisions		—		90,714		—
Mortgage-backed securities in government sponsored entities		—		66,206		—
Equity securities in financial institutions		—		570		—
Fair value of swap asset		—		1,671		—
Fair value of swap liability		—		1,671		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	9,476
Other real estate owned		—		—		473
	Fair Value Measurements at December 31, 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	$	—	$	42,902	$	—
Obligations of states and political subdivisions		—		88,021		—
Mortgage-backed securities in government sponsored entities		—		66,442		—
Equity securities in financial institutions		—		540		—
Fair value of swap asset		—		1,721		—
Fair value of swap liability		—		1,721		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	10,126
Other real estate owned		—		—		560

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, 2015.

	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2015	Fair Value Estimate		Valuation Technique	Unobservable Input	Range
Impaired loans	$	9,476	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%
				Holding period	0 - 30 months
			Discounted cash flows	Discount rates	3.8% - 8.0%
Other real estate owned	$	473	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, 2014.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2014	Fair Value Estimate		Valuation Technique	Unobservable Input	Range
Impaired loans	$	10,126	Appraisal of collateral	Appraisal adjustments	10% - 30%
				Liquidation expense	0% - 10%
				Holding period	0 - 30 months
			Discounted cash flows	Discount rates	3.8% - 8.0%
Other real estate owned	$	560	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.

June 30, 2015	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	35,092	$	35,092	$	35,092	$	—	$	—
Securities available for sale		197,429		197,429		—		197,429		—
Other securities		13,261		13,261		13,261		—		—
Loans, held for sale		4,034		4,034		4,034		—		—
Loans, net of allowance for loan losses		988,210		994,973		—		—		994,973
Bank owned life insurance		19,870		19,870		19,870		—		—
Accrued interest receivable		3,987		3,987		3,987		—		—
Fair value swap asset		1,671		1,671		—		1,671		—
Financial Liabilities:
Nonmaturing deposits		842,246		842,246		842,246		—		—
Time deposits		233,560		234,387		—		—		234,387
Federal Home Loan Bank advances		55,300		55,381		—		—		55,381
Securities sold under agreement to repurchase		17,460		17,460		17,460		—		—
Subordinated debentures		29,427		23,965		—		—		23,965
Accrued interest payable		136		136		136		—		—
Fair value swap liability		1,671		1,671		—		1,671		—

December 31, 2014	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	29,858	$	29,858	$	29,858	$	—	$	—
Securities available for sale		197,905		197,905		—		197,905		—
Other securities		12,586		12,586		12,586		—		—
Loans, held for sale		2,410		2,410		2,410		—		—
Loans, net of allowance for loan losses		900,589		908,118		—		—		908,118
Bank owned life insurance		19,637		19,637		19,637		—		—
Accrued interest receivable		3,852		3,852		3,852		—		—
Fair value swap asset		1,721		1,721		—		1,721		—
Financial Liabilities:
Nonmaturing deposits		748,948		748,948		748,948		—		—
Time deposits		219,970		221,263		—		—		221,263
Federal Home Loan Bank advances		65,200		65,399		—		—		65,399
Securities sold under agreement to repurchase		21,613		21,613		21,613		—		—
Subordinated debentures		29,427		24,688		—		—		24,688
Accrued interest payable		126		126		126		—		—
Fair value swap liability		1,721		1,721		—		1,721		—