Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2018

Assets and Liabilities Measured at Fair Value

Assets and liabilities measured at fair value are summarized in the table below.

	Fair Value Measurements at March 31, 2018 Using:
Assets:	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available for sale
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	29,797	$	—
Obligations of states and political subdivisions		—		117,663		—
Mortgage-backed securities in government sponsored entities		—		86,582		—
Total securities available for sale		—		234,042		—
Equity securities in financial institutions		—		873		—
Swap asset		—		2,065		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		2,065		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,345
Other real estate owned		—		—		11

	Fair Value Measurements at December 31, 2017 Using:
Assets:	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available for sale
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	30,358	$	—
Obligations of states and political subdivisions		—		118,056		—
Mortgage-backed securities in government sponsored entities		—		81,816		—
Total securities available for sale		—		230,230		—
Equity securities in financial institutions		—		832		—
Swap asset		—		1,560		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		1,560		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,040
Other real estate owned		—		—		16

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, 2018.

	Quantitative Information about Level 3 Fair Value Measurements
March 31, 2018	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,345	Appraisal of collateral	Appraisal adjustments	10% - 38%	31%
				Liquidation expense	0% - 10%	3%
				Holding period	0 - 30 months	20 months
Other real estate owned	$	11	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, 2017.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2017	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,040	Appraisal of collateral	Appraisal adjustments	0% - 30%	16%
				Liquidation expense	0% - 10%	8%
				Holding period	0 - 30 months	20 months
Other real estate owned	$	16	Appraisal of collateral	Appraisal adjustments	10% - 30%		10%
				Liquidation expense	0% - 10%		10%

Carrying Amount and Fair Value of Financial Instruments Not Measured at Fair Value on a Recurring or Nonrecurring Basis

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at March 31, 2018 are as follows:

March 31, 2018	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	118,970	$	118,970	$	118,970	$	—	$	—
Other securities		14,247		14,247		14,247		—		—
Loans, held for sale		2,379		2,379		2,379		—		—
Loans		1,140,944		1,128,603		—		—		1,128,603
Bank owned life insurance		25,267		25,267		25,267		—		—
Accrued interest receivable		4,842		4,842		4,842		—		—
Financial Liabilities:
Nonmaturing deposits		1,149,514		1,149,173		1,149,173		—		—
Time deposits		141,157		141,119		—		—		141,119
Short-term FHLB advances		55,000		55,000		55,000		—		—
Long-term FHLB advances		5,000		4,962		—		—		4,962
Securities sold under agreement to repurchase		17,452		17,452		17,452		—		—
Subordinated debentures		29,427		32,031		—		—		32,031
Accrued interest payable		100		100		100		—		—

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at December 31, 2017 are as follows:

December 31, 2017	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	40,519	$	40,519	$	40,519	$	—	$	—
Loans, held for sale		2,197		2,197		2,197		—		—
Loans		1,151,527		1,146,969		—		—		1,146,969
Other securities		14,247		14,247		14,247		—		—
Bank owned life insurance		25,125		25,125		25,125		—		—
Accrued interest receivable		4,488		4,488		4,488		—		—
Financial Liabilities:
Nonmaturing deposits		981,021		981,021		981,021		—		—
Time deposits		223,902		223,626		—		—		223,626
Short-term FHLB advances		56,900		56,900		56,900		—		—
Long-term FHLB advances		15,000		14,964		—		—		14,964
Securities sold under agreement to repurchase		21,755		21,755		21,755		—		—
Subordinated debentures		29,427		31,052		—		—		31,052
Accrued interest payable		410		410		410		—		—