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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2015
Fair Value Disclosures [Abstract]  
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 September 30, 2015 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
 
$
—

 
$
9,970

 
$
—

 
$
9,970

Obligations of State and Political Subdivisions
 
—

 
184,336

 
9,006

 
193,342

Mortgage-backed Securities-Residential
 
—

 
421,479

 
—

 
421,479

Equity Securities
 
—

 
—

 
353

 
353

Total Securities
 
$
—

 
$
615,785

 
$
9,359

 
$
625,144

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$
—

 
$
6,410

 
$
—

 
$
6,410

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$
—

 
$
1,433

 
$
—

 
$
1,433

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$
—

 
$
1,462

 
$
—

 
$
1,462

 
 
 
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

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
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 three and nine months ended September 30, 2015 and 2014:
 
 
Obligations of State and Political Subdivisions
 
Equity Securities
 
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
Balance of Recurring Level 3 Assets at July 1
 
$
9,521

 
$
10,562

 
$
353

 
$
353

Total Gains or Losses (realized/unrealized) Included in Other Comprehensive Income
 
25

 
(12
)
 
—

 
—

Maturities / Calls
 
(540
)
 
(430
)
 
—

 
—

Purchases
 
—

 
—

 
—

 
—

Balance of Recurring Level 3 Assets at September 30
 
$
9,006

 
$
10,120

 
$
353

 
$
353


 

Obligations of State and Political Subdivisions

Equity Securities
 

2015

2014

2015

2014













Balance of Recurring Level 3 Assets at January 1

$
10,141


$
10,832


$
353


$
353

Total Gains or Losses (realized/unrealized) Included in Other Comprehensive Income

(20
)

143


—


—

Maturities / Calls

(1,115
)

(855
)

—


—

Purchases

—


—


—


—

Balance of Recurring Level 3 Assets at September 30

$
9,006


$
10,120


$
353


$
353
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 September 30, 2015 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
 
 

 
 

 
 

 
 

Commercial and Industrial Loans
 
$
—

 
$
—

 
$
426

 
$
426

Commercial Real Estate Loans
 
—

 
—

 
1,386

 
1,386

Agricultural Loans
 
—

 
—

 
—

 
—

Other Real Estate
 
 

 
 

 
 

 
 

Commercial Real Estate
 
—

 
—

 
—

 
—

 
 
 
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
 
 

 
 

 
 

 
 

Commercial and Industrial Loans
 
$
—

 
$
—

 
$
—

 
$
—

Commercial Real Estate Loans
 
—

 
—

 
1,504

 
1,504

Agricultural Loans
 
—

 
—

 
—

 
—

Other Real Estate
 
 

 
 

 
 

 
 

Commercial Real Estate
 
—

 
—

 
68

 
68
Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques
The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014:
September 30, 2015 
 
Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range (Weighted Average)

 








Impaired Loans - Commercial and Industrial Loans
 
$
426

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
100%-69%
(69%)
Impaired Loans - Commercial Real Estate Loans
 
$
1,386


Sales comparison approach

Adjustment for physical condition of comparable properties sold

93%-30%
(74%)

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
 
Adjustment for physical condition of comparable properties sold
 
30%-86%
(71%)
Other Real Estate - Commercial Real Estate Loans
 
$
68

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
55%
(55%)
Carrying Amounts and Estimated Fair Values of Company's Financial Instruments
The carrying amounts and estimated fair values of the Company’s financial instruments not previously presented are provided in the tables below for the periods ending September 30, 2015 and December 31, 2014. Not all of the Company’s assets and liabilities are considered financial instruments, and therefore are not included in the table. Because no active market exists for a significant portion of the Company’s financial instruments, fair value estimates were based on subjective judgments, and therefore cannot be determined with precision.
 
 
 
 
Fair Value Measurements at
September 30, 2015 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
62,238

 
$
39,998

 
$
22,240

 
$
—

 
$
62,238

Securities Held-to-Maturity
 
95

 
—

 
95

 
—

 
95

Loans, Net
 
1,496,998

 
—

 
—

 
1,500,221

 
1,500,221

FHLB Stock and Other Restricted Stock
 
8,167

 
N/A

 
N/A

 
N/A

 
N/A

Accrued Interest Receivable
 
8,978

 
—

 
2,819

 
6,159

 
8,978

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(1,458,467
)
 
(1,458,467
)
 
—

 
—

 
(1,458,467
)
Time Deposits
 
(345,368
)
 
—

 
(345,415
)
 
—

 
(345,415
)
Short-term Borrowings
 
(139,479
)
 
—

 
(139,479
)
 
—

 
(139,479
)
Long-term Debt
 
(99,593
)
 
—

 
(95,393
)
 
(5,513
)
 
(100,906
)
Accrued Interest Payable
 
(627
)
 
—

 
(620
)
 
(7
)
 
(627
)
 
 
 
 
 
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

Loans, Net
 
1,431,549

 
—

 
—

 
1,432,622

 
1,432,622

FHLB Stock and Other Restricted Stock
 
7,040

 
N/A

 
N/A

 
N/A

 
N/A

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
)