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Fair Value (Tables)
12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:
 
 
Fair Value Measurements at December 31, 2014 Using
 
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
 
Total
Assets:
 
 

 
 

 
 

 
 

U.S. Treasury and Agency Securities
 
$

 
$
19,561

 
$

 
$
19,561

Corporate Securities
 

 

 

 

Obligations of State and Political Subdivisions
 

 
143,636

 
10,141

 
153,777

Mortgage-backed Securities-Residential
 

 
457,304

 

 
457,304

Equity Securities
 

 

 
353

 
353

Total Securities
 
$

 
$
620,501

 
$
10,494

 
$
630,995

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$

 
$
6,311

 
$

 
$
6,311

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$

 
$
507

 
$

 
$
507

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$

 
$
508

 
$

 
$
508


 
 
Fair Value Measurements at December 31, 2013 Using
 
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 

 
 

 
 

 
 

U.S. Treasury and Agency Securities
 
$

 
$
18,952

 
$

 
$
18,952

Corporate Securities
 

 

 

 

Obligations of State and Political Subdivisions
 

 
102,665

 
10,832

 
113,497

Mortgage-backed Securities-Residential
 

 
473,230

 

 
473,230

Equity Securities
 

 

 
353

 
353

Total Securities
 
$

 
$
594,847

 
$
11,185

 
$
606,032

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$

 
$
9,265

 
$

 
$
9,265

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$

 
$
866

 
$

 
$
866

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$

 
$
737

 
$

 
$
737

Reconciliation of all Assets Measured at Fair Value on Recurring Basis, Using Significant Unobservable Inputs (Level 3)
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2014 and 2013:
 
 
Obligations of State and Political Subdivisions
 
Equity Securities
 
Corporate Securities
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Balance of Recurring Level 3 Assets at January 1
 
$
10,832

 
$
12,169

 
$
353

 
$
353

 
$

 
$

Total Gains or Losses (realized/unrealized) Included in earnings
 
164

 
(332
)
 

 

 

 

Maturities / Calls
 
(855
)
 
(1,005
)
 

 

 

 

Purchases
 

 

 

 

 

 

Balance of Recurring Level 3 Assets at December 31
 
$
10,141

 
$
10,832

 
$
353

 
$
353

 
$

 
$

Schedule of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis
Assets and liabilities measured at fair value on a non-recurring basis are summarized below:
 
 
Fair Value Measurements at December 31, 2014 Using
 
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 

 
 

 
 

 
 

Impaired Loans with Specific Allocations
 
 

 
 

 
 

 
 

Commercial and Industrial Loans
 
$

 
$

 
$

 
$

Commercial Real Estate Loans
 

 

 
1,504

 
1,504

Agricultural Loans
 

 

 

 

Other Real Estate
 
 

 
 

 
 

 


Commercial Real Estate
 

 

 
68

 
68


 
 
Fair Value Measurements at December 31, 2013 Using
 
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 

 
 

 
 

 
 

Impaired Loans with Specific Allocations
 
 

 
 

 
 

 
 

Commercial and Industrial Loans
 
$

 
$

 
$

 
$

Commercial Real Estate Loans
 

 

 
1,346

 
1,346

Agricultural Loans
 

 

 

 

Other Real Estate
 
 

 
 

 
 

 


Commercial Real Estate
 

 

 
20

 
20

Quantitative Information of Fair Value Measurements
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 December 31, 2014 and 2013:

December 31, 2014
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range (Weighted Average)
Impaired Loans - Commercial Real Estate Loans
 
$
1,504

 
Sales comparison approach
Income approach
Cost approach
 
Adjustment for physical condition of comparable properties sold
Adjustment for net operating income generated by the property
Adjustment for investor rates of return
 
30% - 86%
(71%)
Other Real Estate - Commercial Real Estate Loans
 
$
68

 
Sales comparison approach
Income approach
Cost approach
 
Adjustment for physical condition of comparable properties sold
Adjustment for net operating income generated by the property
Adjustment for investor rates of return
 
55%
(55%)

December 31, 2013
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range (Weighted Average)
Impaired Loans - Commercial Real Estate Loans
 
$
1,346

 
Sales comparison approach
Income approach
Cost approach
 
Adjustment for physical condition of comparable properties sold
Adjustment for net operating income generated by the property
Adjustment for investor rates of return
 
12% - 80%
(53%)
Other Real Estate - Commercial Real Estate Loans
 
$
20

 
Sales comparison approach
Income approach
Cost approach
 
Adjustment for physical condition of comparable properties sold
Adjustment for net operating income generated by the property
Adjustment for investor rates of return
 
50%
(50%)
Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments
 
 
 
 
Fair Value Measurements at
December 31, 2014 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
42,546

 
$
33,481

 
$
9,065

 
$

 
$
42,546

Securities Held-to-Maturity
 
184

 

 
186

 

 
186

FHLB Stock and Other Restricted Stock
 
7,040

 
N/A

 
N/A

 
N/A

 
N/A

Loans, Net
 
1,431,549

 

 

 
1,432,622

 
1,432,622

Accrued Interest Receivable
 
8,162

 

 
2,240

 
5,922

 
8,162

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(1,446,336
)
 
(1,446,336
)
 

 

 
(1,446,336
)
Time Deposits
 
(333,425
)
 

 
(335,134
)
 

 
(335,134
)
Short-term Borrowings
 
(141,473
)
 

 
(141,473
)
 

 
(141,473
)
Long-term Debt
 
(64,591
)
 

 
(60,289
)
 
(5,429
)
 
(65,718
)
Accrued Interest Payable
 
(754
)
 

 
(704
)
 
(50
)
 
(754
)
Unrecognized Financial Instruments:
 
 

 
 

 
 

 
 

 
 

Commitments to Extend Credit
 

 

 

 

 

Standby Letters of Credit
 

 

 

 

 

Commitments to Sell Loans
 

 

 

 

 


 
 
 
 
Fair Value Measurements at
December 31, 2013 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
60,232

 
$
37,370

 
$
22,862

 
$

 
$
60,232

Securities Held-to-Maturity
 
268

 

 
271

 

 
271

FHLB Stock and Other Restricted Stock
 
9,004

 
N/A

 
N/A

 
N/A

 
N/A

Loans, Net
 
1,366,452

 

 

 
1,370,339

 
1,370,339

Accrued Interest Receivable
 
7,470

 

 
1,918

 
5,552

 
7,470

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(1,463,122
)
 
(1,463,122
)
 

 

 
(1,463,122
)
Time Deposits
 
(349,034
)
 

 
(351,707
)
 

 
(351,707
)
Short-term Borrowings
 
(53,533
)
 

 
(53,533
)
 

 
(53,533
)
Long-term Debt
 
(87,237
)
 

 
(83,329
)
 
(5,311
)
 
(88,640
)
Accrued Interest Payable
 
(777
)
 

 
(732
)
 
(45
)
 
(777
)
Unrecognized Financial Instruments:
 
 

 
 

 
 

 
 

 
 

Commitments to Extend Credit
 

 

 

 

 

Standby Letters of Credit
 

 

 

 

 

Commitments to Sell Loans