Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2017

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 September 30, 2017
Description	September 30, 2017		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	23,810	$	—	$	23,810	$	—
GSE mortgage-backed securities	62,860		—		62,860		—
Collateralized mortgage obligations: residential	210,209		—		210,209		—
Collateralized mortgage obligations: commercial	2,472		—		2,472		—
Mutual funds	2,079		2,079		—		—
Corporate debt securities	24,792		—		24,792		—
Total available-for-sale securities	$	326,222	$	2,079	$	324,143	$	—

Derivative assets	$	855	$	—	$	855	$	—



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2016
Description	December 31, 2016		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	29,141	$	—	$	29,141	$	—
GSE mortgage-backed securities	73,578		—		73,578		—
Collateralized mortgage obligations: residential	220,202		—		220,202		—
Collateralized mortgage obligations: commercial	3,082		—		3,082		—
Mutual funds	2,059		2,059		—		—
Corporate debt securities	13,811		—		13,811		—
Total available-for-sale securities	$	341,873	$	2,059	$	339,814	$	—

Derivative assets	$	989	$	—	$	989	$	—

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



	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at September 30, 2017
Description	September 30, 2017		Level 1		Level 2		Level 3
Impaired loans	$	19,561	$	—	$	—	$	19,561
Other real estate	1,931		—		—		1,931
Assets held for sale	1,100		—		1,100		—

	Assets / Liabilities Measured at Fair Value at		Fair Value Measurements at December 31, 2016
Description	December 31, 2016		Level 1		Level 2		Level 3
Impaired loans	$	26,956	$	—	$	—	$	26,956
Other real estate	2,175		—		—		2,175

Shcedule of Significant Observable Inputs Used in Fair Value Measurement of Level 3 Assets



	Fair Value at
Description	September 30, 2017		Technique	Unobservable Inputs
Impaired loans	$	19,561	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	1,931		Third party appraisals	Collateral discounts and estimated costs to sell

	Fair Value at
Description	December 31, 2016		Technique	Unobservable Inputs
Impaired loans	$	26,956	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	2,175		Third party appraisals	Collateral discounts and estimated costs to sell

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 September 30, 2017 and December 31, 2016 (in thousands):



			Fair Value Measurements at September 30, 2017 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	$	163,123	$	163,123	$	—	$	—
Securities available-for-sale	326,222		2,079		324,143		—
Securities held-to-maturity	83,739		—		84,639		—
Other investments	12,200		12,200		—		—
Loans, net	1,210,916		—		—		1,212,881
Cash surrender value of life insurance policies	14,834		—		14,834		—
Derivative asset	855		—		855		—
Financial liabilities:
Non-interest-bearing deposits	428,183		—		428,183		—
Interest-bearing deposits	1,127,752		—		936,173		190,407
Securities sold under agreements to repurchase	54,875		54,875		—		—
Short-term Federal Home Loan Bank advances	12,500		12,500		—		—
Long-term Federal Home Loan Bank advances	25,110		—		25,215		—
Junior subordinated debentures	22,167		—		22,167		—



			Fair Value Measurements at December 31, 2016 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	$	82,228	$	82,228	$	—	$	—
Securities available-for-sale	341,873		2,059		339,814		—
Securities held-to-maturity	98,211		—		98,261		—
Other investments	11,355		11,355		—		—
Loans, net	1,259,710		—		—		1,263,089
Cash surrender value of life insurance policies	14,335		—		14,335		—
Derivative asset	989		—		989		—
Financial liabilities:
Non-interest-bearing deposits	414,921		—		414,921		—
Interest-bearing deposits	1,164,509		—		1,012,633		150,879
Securities sold under agreements to repurchase	94,461		94,461		—		—
Long-term Federal Home Loan Bank advances	25,424		—		25,808		—
Junior subordinated debentures	22,167		—		22,167		—