Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Assets and liabilities measured on recurring basis measured at fair value

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2014, December 31, 2013 and September 30, 2013.

	At September 30, 2014
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	157,750,000	$	—	$	157,750,000
State and political subdivisions	—		30,619,000		—		30,619,000
Other equity securities	—		2,551,000		—		2,551,000
Total assets	$	—	$	190,920,000	$	—	$	190,920,000

	At December 31, 2013
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	177,729,000	$	—	$	177,729,000
State and political subdivisions	—		126,315,000		—		126,315,000
Other equity securities	—		1,780,000		—		1,780,000
Total assets	$	—	$	305,824,000	$	—	$	305,824,000

	At September 30, 2013
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	188,256,000	$	—	$	188,256,000
State and political subdivisions	—		127,971,000		—		127,971,000
Other equity securities	—		1,673,000		—		1,673,000
Total assets	$	—	$	317,900,000	$	—	$	317,900,000

Assets and liabilities measured on non-recurring basis measured at fair value

The following tables include assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance of $533,000, $330,000 and $228,000 at September 30, 2014, December 31, 2013, and September 30, 2013, respectively. Only collateral-dependent impaired loans with a related specific allowance for loan losses or a partial charge off are included in impaired loans for purposes of fair value disclosures. Impaired loans below are presented net of specific allowances of$2,165,000, $1,309,000 and $1,976,000 at September 30, 2014, December 31, 2013, and September 30, 2013, respectively.

	At September 30, 2014
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	4,557,000	$	—	$	4,557,000
Impaired loans	—		2,465,000		—		2,465,000
Total assets	$	—	$	7,022,000	$	—	$	7,022,000

	At December 31, 2013
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	4,807,000	$	—	$	4,807,000
Impaired loans	—		1,116,000		—		1,116,000
Total assets	$	—	$	5,923,000	$	—	$	5,923,000

	At September 30, 2013
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	3,760,000	$	—	$	3,760,000
Impaired loans	—		2,341,000		—		2,341,000
Total assets	$	—	$	6,101,000	$	—	$	6,101,000

Estimated fair value of financial instruments

The carrying amount and estimated fair values for financial instruments as of September 30, 2014 were as follows:

	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	17,167,000	$	17,167,000	$	17,167,000	$	—	$	—
Interest bearing deposits in other banks	773,000		773,000		773,000		—		—
Securities available for sale	190,920,000		190,920,000		—		190,920,000		—
Securities to be held to maturity	281,740,000		280,779,000		—		280,779,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	383,000		383,000		—		383,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	238,779,000		237,103,000		—		353,000		236,750,000
Construction	26,017,000		25,834,000		—		—		25,834,000
Other	95,278,000		95,470,000		—		162,000		95,308,000
Municipal	20,704,000		20,947,000		—		—		20,947,000
Residential
Term	385,155,000		390,586,000		—		1,770,000		388,816,000
Construction	12,229,000		12,205,000		—		—		12,205,000
Home equity line of credit	100,196,000		99,701,000		—		180,000		99,521,000
Consumer	18,116,000		18,337,000		—		—		18,337,000
Total loans	896,474,000		900,183,000		—		2,465,000		897,718,000
Mortgage servicing rights	1,078,000		2,135,000		—		2,135,000		—
Accrued interest receivable	5,141,000		5,141,000		—		5,141,000		—
Financial liabilities
Demand deposits	$	119,512,000	$	113,930,000	$	—	$	113,930,000	$	—
NOW deposits	213,694,000		195,698,000		—		195,698,000		—
Money market deposits	99,260,000		82,678,000		—		82,678,000		—
Savings deposits	159,080,000		138,305,000		—		138,305,000		—
Local certificates of deposit	210,332,000		210,696,000		—		210,696,000		—
National certificates of deposit	253,444,000		254,176,000		—		254,176,000		—
Total deposits	1,055,322,000		995,483,000		—		995,483,000		—
Repurchase agreements	86,908,000		81,704,000		—		81,704,000		—
Federal Home Loan Bank advances	171,728,000		175,189,000		—		175,189,000		—
Total borrowed funds	258,636,000		256,893,000		—		256,893,000		—
Accrued interest payable	535,000		535,000		—		535,000		—

The carrying amounts and estimated fair values for financial instruments as of December 31, 2013 were as follows:

	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	16,570,000	$	16,570,000	$	16,570,000	$	—	$	—
Interest bearing deposits in other banks	2,562,000		2,562,000		2,562,000		—		—
Securities available for sale	305,824,000		305,824,000		—		305,824,000		—
Securities to be held to maturity	169,277,000		158,336,000		—		158,336,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	83,000		83,000		—		83,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	240,555,000		239,973,000		—		109,000		239,864,000
Construction	19,709,000		19,661,000		—		—		19,661,000
Other	92,625,000		92,855,000		—		229,000		92,626,000
Municipal	19,099,000		19,358,000		—		—		19,358,000
Residential
Term	375,932,000		381,918,000		—		778,000		381,140,000
Construction	11,778,000		11,794,000		—		—		11,794,000
Home equity line of credit	90,759,000		90,542,000		—		—		90,542,000
Consumer	14,396,000		14,438,000		—		—		14,438,000
Total loans	864,853,000		870,539,000		—		1,116,000		869,423,000
Mortgage servicing rights	1,158,000		1,948,000		—		1,948,000		—
Accrued interest receivable	5,038,000		5,038,000		—		5,038,000		—
Financial liabilities
Demand deposits	$	106,125,000	$	96,175,000	$	—	$	96,175,000	$	—
NOW deposits	151,322,000		129,815,000		—		129,815,000		—
Money market deposits	86,730,000		67,968,000		—		67,968,000		—
Savings deposits	149,103,000		122,891,000		—		122,891,000		—
Local certificates of deposit	226,658,000		228,767,000		—		228,767,000		—
National certificates of deposit	304,461,000		306,346,000		—		306,346,000		—
Total deposits	1,024,399,000		951,962,000		—		951,962,000		—
Repurchase agreements	94,477,000		94,477,000		—		94,477,000		—
Federal Home Loan Bank advances	184,648,000		189,644,000		—		189,644,000		—
Total borrowed funds	279,125,000		284,121,000		—		284,121,000		—
Accrued interest payable	599,000		599,000		—		599,000		—

	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	20,117,000	$	20,117,000	$	20,117,000	$	—	$	—
Interest bearing deposits in other banks	787,000		787,000		787,000		—		—
Securities available for sale	317,900,000		317,900,000		—		317,900,000		—
Securities to be held to maturity	172,251,000		166,269,000		—		166,269,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	1,555,000		1,555,000		—		1,555,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	242,264,000		241,750,000		—		1,559,000		240,191,000
Construction	18,714,000		18,674,000		—		—		18,674,000
Other	82,540,000		82,928,000		—		167,000		82,761,000
Municipal	18,200,000		18,528,000		—		—		18,528,000
Residential
Term	374,266,000		380,938,000		—		581,000		380,357,000
Construction	7,600,000		7,617,000		—		—		7,617,000
Home equity line of credit	91,614,000		91,513,000		—		34,000		91,479,000
Consumer	14,418,000		14,381,000		—		—		14,381,000
Total loans	849,616,000		856,329,000		—		2,341,000		853,988,000
Mortgage servicing rights	1,116,000		1,852,000		—		1,852,000		—
Accrued interest receivable	5,353,000		5,353,000		—		5,353,000		—
Financial liabilities
Demand deposits	$	110,007,000	$	101,411,000	$	—	$	101,411,000	$	—
NOW deposits	151,126,000		131,713,000		—		131,713,000		—
Money market deposits	96,313,000		77,184,000		—		77,184,000		—
Savings deposits	147,560,000		124,589,000		—		124,589,000		—
Local certificates of deposit	226,182,000		228,930,000		—		228,930,000		—
National certificates of deposit	306,278,000		308,479,000		—		308,479,000		—
Total deposits	1,037,466,000		972,306,000		—		972,306,000		—
Repurchase agreements	106,627,000		106,627,000		—		106,627,000		—
Federal Home Loan Bank advances	160,150,000		165,601,000		—		165,601,000		—
Total borrowed funds	266,777,000		272,228,000		—		272,228,000		—
Accrued interest payable	594,000		594,000		—		594,000		—