Fair Value (Tables)

3 Months Ended

Mar. 31, 2017

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes, by measurement hierarchy, the various assets and liabilities of the Company that are measured at fair value on a recurring basis:



	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2017
U.S. government agencies	$	12,193	$	—	$	12,193	$	—
State and political subdivisions	9,098		—		6,431		2,667
U.S. government agency residential
mortgage-backed securities	118,354		—		118,354		—
Collateralized mortgage obligations:
Agency	13,627		—		13,627		—
Equities	3,030		—		3,030		—
Available-for-sale securities	$	156,302	$	—	$	153,635	$	2,667




	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2016
U.S. government agencies	$	12,071	$	—	$	12,071	$	—
State and political subdivisions	9,065		—		6,398		2,667
U.S. government agency residential
mortgage-backed securities	127,313		—		127,313		—
Collateralized mortgage obligations:
Agency	14,456		—		14,456		—
Equities	3,022		—		3,022		—
Available-for-sale securities	$	165,927	$	—	$	163,260	$	2,667

Summary of Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2017 and December 31, 2016:



March 31, 2017	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
Commercial
Closed-end	$	10			20% - 100% (56%)
Line of credit	$	194			20% - 100% (75%)
CRE - construction, land & development	$	12			10% - 85% (80%)
CRE - all other
Non-owner occupied	2,299				10% - 55% (17%)
1-4 family residential
Senior lien	2,464				10% - 60% (27%)
OREO property			Sales comparison approach	Adjustment for differences between comparable sales
CRE - construction, land & development	568				5% - 70% (34%)
CRE - all other
Non-owner occupied	55				5% - 50% (15%)
1-4 family residential
Senior lien	38				6% - 55% (24%)



December 31, 2016	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
Commercial
Closed-end	$	25			20% - 100% (36%)
Line of credit	39				20% - 100% (89%)
CRE - construction, land & development	12				10% - 85% (80%)
1-4 family residential
Senior lien	140				10% - 60% (57%)
OREO property			Sales comparison approach	Adjustment for differences between comparable sales
CRE - construction, land & development	1,867				5% - 80% (30%)
CRE - all other
Non-owner occupied	476				5% - 50% (15%)
1-4 family residential
Senior lien	163				6% - 65% (37%)

The following table summarizes, by measurement hierarchy, financial assets of the Company that are measured at fair value on a non-recurring basis.



	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2017
Impaired loans
Commercial
Closed-end	$	10	$	—	$	—	$	10
Line of credit	194		—		—		194
CRE - construction, land & development	12		—		—		12
CRE - all other
Non-owner occupied	2,299		—		—		2,299
1-4 family residential
Senior lien	2,464		—		—		2,464
OREO property
CRE - construction, land & development	568		—		—		568
CRE - all other
Non-owner occupied	55		—		—		55
1-4 family residential
Senior lien	38		—		—		38



	Carrying Amount		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2016
Impaired loans
Commercial
Closed-end	$	25	$	—	$	—	$	25
Line of credit	39		—		—		39
CRE - construction, land & development	12		—		—		12
1-4 family residential
Senior lien	140		—		—		140
OREO property
CRE - construction, land & development	1,867		—		—		1,867
CRE - all other
Non-owner occupied	476		—		—		476
1-4 family residential
Senior lien	163		—		—		163

Schedule of Financial Instruments Estimated at Fair Value

The estimated fair values of the Company’s financial instruments are as follows:



			Fair Value measurements at March 31, 2017 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	31,237	$	31,237	$	—	$	—	$	31,237
Securities	156,302		—		153,635		2,667		156,302
Restricted securities	8,019		—		—		—		NA
Net loans	679,148		—		—		678,226		678,226
Accrued interest receivable	2,454		—		591		1,863		2,454
Financial liabilities
Deposits	$	728,489	$	—	$	728,513	$	—	$	728,513
Federal funds purchased and
securities sold under
agreements to repurchase	11,303		—		11,303		—		11,303
Federal Home Loan Bank advances	93,000		—		93,058		—		93,058
Subordinated debentures	10,310		—		—		9,724		9,724
Series B mandatory redeemable
preferred stock	209		—		211		—		211
Accrued interest payable	160		—		144		16		160



			Fair Value measurements at December 31, 2016 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	22,507	$	22,507	$	—	$	—	$	22,507
Securities	165,927		—		163,260		2,667		165,927
Restricted securities	9,860		—		—		—		NA
Net loans	676,871		—		—		677,832		677,832
Accrued interest receivable	2,750		—		511		2,239		2,750
Financial liabilities
Deposits	$	740,046	$	—	$	740,106	$	—	$	740,106
Federal funds purchased and
securities sold under
agreements to repurchase	11,168		—		11,168		—		11,168
Federal Home Loan Bank advances	85,000		—		85,039		—		85,039
Notes payable	—		—		—		—		—
Subordinated debentures	10,310		—		—		9,525		9,525
Series B mandatory redeemable
preferred stock	209		—		211		—		211
Accrued interest payable	286		—		272		14		286