Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Fair Values of Financial Instruments [Abstract]

Fair Value Measurements of Assets Measured at Fair Value on Recurring Basis

The following table presents the fair value measurements of assets measured at fair value on a recurring basis and level within the ASC 820 fair value hierarchy in which the fair value measurements fall:

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
March 31, 2015
Mortgage-backed securities
Government sponsored agencies	$	114,537	$	-	$	114,537	$	-
Collateralized mortgage obligations
Government sponsored agencies		92,199		-		92,199		-
Municipal obligations		40,234		-		40,234		-
Corporate obligations		20,533		-		18,011		2,522
Available-for-sale securities	$	267,503	$	-	$	264,981	$	2,522

Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
December 31, 2014
Mortgage-backed securities
Government sponsored agencies	$	113,290	$	-	$	113,290	$	-
Collateralized mortgage obligations
Government sponsored agencies		97,759		-		97,759		-
Federal agencies		4		-		4		-
Municipal obligations		29,252		-		29,252		-
Corporate obligations		20,501		-		17,979		2,522
Available-for-sale securities	$	260,806	$	-	$	258,284	$	2,522

The following is a reconciliation of the beginning and ending balances for the three months ended March 31, 2015 and 2014 of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs:

		2015		2014
Beginning balance	$	2,522	$	3,336
Total realized and unrealized gains (losses)
Included in net income		-		-
Included in other comprehensive income (loss)		-		714
Purchases, sales, issuances and settlements		-		(7)
Ending balance	$	2,522	$	4,043
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	0	$	0

Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall. 

No assets to be measured at fair value on a nonrecurring basis per ASC 820 required a value adjustment as of March 31, 2015.

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
December 31, 2014
Other real estate owned	$	1,280	$	-	$	-	$	1,280

Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

March 31, 2015	Fair Value		Valuation Technique	Unobservable Inputs	Range
Trust Preferred Securities	$	2,522	Discounted cash flow	Discount rate	8.0	%
				Constant prepayment rate	2.0	%
				Cumulative projected prepayments	40.0	%
				Probability of default	1.7 - 1.8	%
				Projected cures given deferral	0 - 15.0	%
				Loss severity	34.2 - 39.8	%

December 31, 2014	Fair Value		Valuation Technique	Unobservable Inputs	Range
Trust Preferred Securities	$	2,522	Discounted cash flow	Discount rate	8.0	%
				Constant prepayment rate	2.0	%
				Cumulative projected prepayments	40.0	%
				Probability of default	1.7 - 1.8	%
				Projected cures given deferral	0 - 15.0	%
				Loss severity	34.2 - 39.8	%
Other real estate owned	$	1,280	Third party valuations	Discount to reflect realizable value less estimated selling costs	24.4 - 36.7	%

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated balance sheets as of the dates noted below are as follows: 

					Fair Value Measurements Using
March 31, 2015		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	18,667	$	18,667	$	18,667	$	-	$	-
Loans held for sale		10,771		10,888		-		10,888		-
Loans, net		1,010,390		1,017,968		-		-		1,017,968
FHLB stock		11,964		11,964		-		11,964		-
Interest receivable		3,656		3,656		-		3,656		-
Liabilities
Deposits		1,086,125		1,087,595		696,191		-		391,404
FHLB advances		187,542		188,031		-		188,031		-
Other borrowings		9,995		10,090		-		10,090		-
Interest payable		247		247		-		247		-

					Fair Value Measurements Using
December 31, 2014		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	29,575	$	29,575	$	29,575	$	-	$	-
Loans held for sale		6,140		6,220		-		6,220		-
Loans, net		1,003,518		1,006,233		-		-		1,006,233
FHLB stock		11,964		11,964		-		11,964		-
Interest receivable		3,730		3,730		-		3,730		-
Liabilities
Deposits		1,079,320		1,050,295		648,314		-		401,981
FHLB advances		192,442		191,995		-		191,995		-
Other borrowings		10,174		10,283		-		10,283		-
Interest payable		223		223		-		223		-