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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2015
Fair Value Measurements [Abstract]  
Summary of Assets Measured at Fair Value on a Recurring Basis
The following tables present the assets and liabilities reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of March 31, 2015 and December 31, 2014 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

March 31, 2015
 
Level I
 
Level II
 
Level III
   
Total
Assets
                 
  Securities available for sale:
                 
     U.S. agency securities
 
 $                -
 
 $             143,839
 
 $                    -
   
 $             143,839
     Obligations of state and
                 
        political subdivisions
 
                   -
 
105,436
 
                       -
   
105,436
     Corporate obligations
 
                   -
 
12,935
 
                       -
   
12,935
     Mortgage-backed securities in
                 
       government sponsored entities
 
                   -
 
28,077
 
                       -
   
28,077
     Equity securities in financial
                 
       institutions
 
           1,617
 
                            -
 
                       -
   
1,617
                   
 
December 31, 2014
 
Level I
 
Level II
 
Level III
   
Total
Securities available for sale:
                 
     U.S. agency securities
 
 $                -
 
 $             150,885
 
 $                    -
   
 $             150,885
     U.S. treasuries securities
 
                   -
 
4,849
 
                       -
   
4,849
     Obligations of state and
                 
       political subdivisions
 
                   -
 
105,036
 
                       -
   
105,036
     Corporate obligations
 
                   -
 
13,958
 
                       -
   
13,958
     Mortgage-backed securities in
                 
       government sponsored entities
 
                   -
 
29,728
 
                       -
   
29,728
     Equity securities in financial institutions
 
           1,690
 
                            -
 
                       -
   
1,690
Summary of Assets Measured at Fair Value on Non-recurring Basis
Assets measured at fair value on a nonrecurring basis as of March 31, 2015 and December 31, 2014 are included in the table below (in thousands):

March 31, 2015
 
Level I
 
Level II
 
Level III
   
Total
Impaired Loans
 
 $                -
 
 $                         -
 
 $            9,022
   
 $                 9,022
Other real estate owned
 
                   -
 
                            -
 
1,773
   
1,773
 
                   
December 31, 2014
                 
Impaired Loans
 
 $                -
 
 $                         -
 
 $            8,724
   
 $                 8,724
Other real estate owned
 
                   -
 
                            -
 
               1,792
   
1,792
Significant Unobservable Inputs Used in Fair Value Measurement Process
The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques.
 
March 31, 2015
Fair Value
 
Valuation Technique(s)
Unobservable input
Range
Weighted average
Impaired Loans
 $  488
 
Discounted Cash Flows
Probability of Default
0%
0.00%
      
Change in interest rates
0-5.5%
0.98%
            
 
  8,534
 
Appraised Collateral Values
Discount for time since appraisal
0-30%
22.00%
      
Selling costs
4%-10%
9.07%
      
Holding period
0 - 18 months
12 months
            
Other real estate owned
  1,773
 
Appraised Collateral Values
Discount for time since appraisal
0-20%
20%
      
Selling costs
4%-10%
9%
      
Holding period
0 - 18 months
12
            
December 31, 2014
Fair Value
 
Valuation Technique(s)
Unobservable input
Range
 
Impaired Loans
 $  230
 
Discounted Cash Flows
Probability of Default
0%
0.00%
      
Change in interest rates
0-5.5%
1.99%
            
 
  8,494
 
Appraised Collateral Values
Discount for time since appraisal
0-30%
22.00%
      
Selling costs
4%-10%
8.55%
      
Holding period
0 - 18 months
15 months
            
Other real estate owned
  1,792
 
Appraised Collateral Values
Discount for time since appraisal
0-20%
20%
      
Selling costs
4%-10%
9%
      
Holding period
0 - 18 months
12
Fair Value of Financial Instruments
The fair values of the Company’s financial instruments are as follows (in thousands):

 
Carrying
       
March 31, 2015
Amount
Fair Value
Level I
Level II
Level III
Financial assets:
         
Cash and due from banks
 $   18,783
 $   18,783
 $   18,783
 $          -
 $             -
Interest bearing time deposits with other banks
        5,960
        5,969
   
5,969
Available-for-sale securities
    291,904
    291,904
        1,617
 290,287
 
Loans held for sale
        1,029
        1,029
        1,029
   
Net loans
    558,257
    579,059
                -
             -
    579,059
Bank owned life insurance
      20,461
      20,461
      20,461
             -
                -
Regulatory stock
        1,628
        1,628
        1,628
             -
                -
Accrued interest receivable
        3,636
        3,636
3,636
             -
                -
           
Financial liabilities:
         
Deposits
 $ 788,776
 $ 790,052
 $ 535,856
 $          -
 $ 254,196
Borrowed funds
      29,388
      26,946
                -
             -
      26,946
Accrued interest payable
           691
           691
691
             -
                -
 
 
Carrying
       
December 31, 2014
Amount
Fair Value
Level I
Level II
Level III
Financial assets:
         
Cash and due from banks
 $   11,423
 $   11,423
 $   11,423
 $          -
 $             -
Interest bearing time deposits with other banks
        5,960
        5,969
                -
             -
        5,969
Available-for-sale securities
    306,146
    306,146
        1,690
 304,456
                -
Loans held for sale
           497
           497
           497
   
Net loans
    547,290
    564,944
                -
             -
    564,944
Bank owned life insurance
      20,309
      20,309
      20,309
             -
                -
Regulatory stock
        2,035
        2,035
        2,035
             -
                -
Accrued interest receivable
        3,644
        3,644
        3,644
             -
                -
           
Financial liabilities:
         
Deposits
 $ 773,933
 $ 774,387
 $ 525,166
 $          -
 $ 249,221
Borrowed funds
      41,799
      38,219
      16,593
             -
      21,626
Accrued interest payable
           756
           756
756
             -
                -