Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2016

Assets measured at fair value are summarized below.


	Fair Value Measurements at March 31, 2016 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	$	—	$	41,828	$	—
Obligations of states and political subdivisions		—		93,175		—
Mortgage-backed securities in government sponsored entities		—		66,194		—
Equity securities in financial institutions		—		589		—
Swap asset		—		2,958		—
Liabilities:
Swap liability		—		2,958		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	391
Other real estate owned		—		—		9

	Fair Value Measurements at December 31, 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	$	—	$	40,937	$	—
Obligations of states and political subdivisions		—		92,152		—
Mortgage-backed securities in government sponsored entities		—		62,573		—
Equity securities in financial institutions		—		587		—
Swap asset		—		1,962		—
Liabilities:
Swap liability		—		1,962		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	759
Other real estate owned		—		—		109

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 March 31, 2016.


	Quantitative Information about Level 3 Fair Value Measurements
March 31, 2016	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	391	Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
				Liquidation expense	0% - 10%	10%
				Holding period	0 - 30 months	18 months
Other real estate owned	$	9	Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
				Liquidation expense	0% - 10%	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, 2015.


	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2015	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	759	Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
				Liquidation expense	0% - 10%	10%
				Holding period	0 - 30 months	17 months
Other real estate owned	$	109	Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
				Liquidation expense	0% - 10%	10%

Carrying Amount and Fair Values of Financial Instruments

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


	Carrying		Total
March 31, 2016	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	214,407	$	214,407	$	214,407	$	—	$	—
Securities available for sale		201,786		201,786		—		201,786		—
Other securities		13,550		13,550		13,550		—		—
Loans, held for sale		2,193		2,193		2,193		—		—
Loans, net of allowance for loan losses		991,370		990,310		—		—		990,310
Bank owned life insurance		23,218		23,218		23,218		—		—
Accrued interest receivable		4,395		4,395		4,395		—		—
Swap asset		2,958		2,958		—		2,958		—
Financial Liabilities:
Nonmaturing deposits		1,075,229		1,074,909		1,074,909		—		—
Time deposits		204,551		205,118		—		—		205,118
Short-term FHLB advances		—		—		—		—		—
Long-term FHLB advances		17,500		17,724		—		—		17,724
Securities sold under agreement to repurchase		24,272		24,272		24,272		—		—
Subordinated debentures		29,427		27,484		—		—		27,484
Accrued interest payable		124		124		124		—		—
Swap liability		2,958		2,958		—		2,958		—


	Carrying		Total
December 31, 2015	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	35,561	$	35,561	$	35,561	$	—	$	—
Securities available for sale		196,249		196,249		—		196,249		—
Loans, held for sale		2,698		2,698		2,698		—		—
Loans, net of allowance for loan losses		987,166		986,848		—		—		986,848
Other securities		13,452		13,452		13,452		—		—
Bank owned life insurance		20,104		20,104		20,104		—		—
Accrued interest receivable		3,902		3,902		3,902		—		—
Swap asset		1,962		1,962		—		1,962		—
Financial Liabilities:
Nonmaturing deposits		840,984		840,984		840,984		—		—
Time deposits		211,049		212,006		—		—		212,006
Short-term FHLB advances		53,700		52,906		52,906		—		—
Long-term FHLB advances		17,500		17,687		—		—		17,687
Securities sold under agreement to repurchase		25,040		25,040		25,040		—		—
Subordinated debentures		29,427		25,572		—		—		25,572
Accrued interest payable		120		120		120		—		—
Swap liability		1,962		1,962		—		1,962		—