Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2015

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

The table below presents information about certain assets and liabilities measured at fair value on a recurring basis (in thousands):



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at June 30, 2015
Description	June 30, 2015		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	39,245	$	—	$	39,245	$	—
GSE mortgage-backed securities	95,744		—		95,744		—
Collateralized mortgage obligations: residential	153,741		—		153,741		—
Collateralized mortgage obligations: commercial	9,509		—		9,509		—
Mutual funds	2,096		2,096		—		—



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2014
Description	December 31, 2014		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Government sponsored enterprises	$	10,227	$	—	$	10,227	$	—
Obligations of state and political subdivisions	44,605		—		44,605		—
GSE mortgage-backed securities	109,103		—		109,103		—
Collateralized mortgage obligations: residential	60,839		—		60,839		—
Collateralized mortgage obligations: commercial	24,545		—		24,545		—
Other asset-backed securities	24,343		—		24,343		—
Collateralized debt obligation	1,218		—		1,218		—
Mutual funds	2,104		2,104		—		—

Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis and are included in the table below (in thousands). Impaired loans are Level 2 assets measured using appraisals from external parties of the collateral less any prior liens. Other real estate properties are also Level 2 assets measured using appraisals from external parties.



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at June 30, 2015
Description	June 30, 2015		Level 1		Level 2		Level 3
Impaired loans	$	12,177	$	—	$	12,177	$	—
Other real estate	4,542		—		4,542		—

	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2014
Description	December 31, 2014		Level 1		Level 2		Level 3
Impaired loans	$	5,051	$	—	$	5,051	$	—
Other real estate	4,234		—		4,234		—

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are as follows at June 30, 2015 and December 31, 2014 (in thousands):



			Fair Value Measurements at June 30, 2015 Using:
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks, interest-bearing deposits in banks and federal funds sold	$	82,636	$	82,636	$	—	$	—
Securities available-for-sale	300,335		2,096		298,239		—
Securities held-to-maturity	126,529		—		126,849		—
Other investments	10,598		10,598		—		—
Loans, net	1,278,344		—		12,177		1,274,834
Cash surrender value of life insurance policies	13,473		—		13,473		—
Financial liabilities:
Non-interest-bearing deposits	408,742		—		408,742		—
Interest-bearing deposits	1,149,508		—		913,432		235,945
Securities sold under agreements to repurchase	84,547		84,547		—		—
Short-term Federal Home Loan Bank advances	40,000		—		40,000		—
Long-term Federal Home Loan Bank advances	26,064		—		—		27,019
Junior subordinated debentures	22,167		—		22,167		—



			Fair Value Measurements at December 31, 2014 Using:
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks, interest-bearing deposits in banks and federal funds sold	$	86,872	$	86,872	$	—	$	—
Securities available-for-sale	276,984		2,104		274,880		—
Securities held-to-maturity	141,201		—		141,593		—
Other investments	9,990		9,990		—		—
Loans, net	1,273,205		—		5,051		1,277,882
Cash surrender value of life insurance policies	13,659		—		13,659		—
Financial liabilities:
Non-interest-bearing deposits	390,863		—		390,863		—
Interest-bearing deposits	1,194,371		—		943,255		251,291
Securities sold under agreements to repurchase	62,098		62,098		—		—
Short-term Federal Home Loan Bank advances	25,000		—		25,000		—
Long-term Federal Home Loan Bank advances	26,277		—		—		27,193
Junior subordinated debentures	22,167		—		22,167		—