Fair Value (Tables)

3 Months Ended

Mar. 31, 2019

Assets Measured on Recurring Basis Measured at Fair Value

The following tables present the balances of assets that were measured at fair value on a recurring basis as of March 31, 2019, December 31, 2018 and March 31, 2018.



	At March 31, 2019
	Level 1		Level 2		Level 3		Total
Securities available for sale
U.S. Government-sponsored agencies	$	—	$	5,016,000	$	—	$	5,016,000
Mortgage-backed securities	—		315,423,000		—		315,423,000
State and political subdivisions	—		4,837,000		—		4,837,000
Total securities available for sale	—		325,276,000		—		325,276,000
Interest rate swap agreements	—		1,232,000		—		1,232,000
Total assets	$	—	$	326,508,000	$	—	$	326,508,000



	At December 31, 2018
	Level 1		Level 2		Level 3		Total
Securities available for sale
U.S. Government-sponsored agencies	$	—	$	5,007,000	$	—	$	5,007,000
Mortgage-backed securities	—		307,693,000		—		307,693,000
State and political subdivisions	—		4,716,000		—		4,716,000
Total securities available for sale	—		317,416,000		—		317,416,000
Interest rate swap agreements	—		1,820,000		—		1,820,000
Total assets	$	—	$	319,236,000	$	—	$	319,236,000



	At March 31, 2018
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	295,328,000	$	—	$	295,328,000
State and political subdivisions	—		5,511,000		—		5,511,000
Total securities available for sale	—		300,839,000		—		300,839,000
Interest rate swap agreements	—		2,441,000		—		2,441,000
Total assets	$	—	$	303,280,000	$	—	$	303,280,000

Assets Measured on Nonrecurring 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 $0 at March 31, 2019, 2018 and December 31, 2018. 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 $1,822,000, $2,096,000 and $1,924,000 at March 31, 2019, December 31, 2018, and March 31, 2018, respectively.



	At March 31, 2019
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	584,000	$	—	$	584,000
Impaired loans	—		6,519,000		—		6,519,000
Total assets	$	—	$	7,103,000	$	—	$	7,103,000



	At December 31, 2018
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	584,000	$	—	$	584,000
Impaired loans	—		7,415,000		—		7,415,000
Total assets	$	—	$	7,999,000	$	—	$	7,999,000



	At March 31, 2018
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	1,121,000	$	—	$	1,121,000
Impaired loans	—		5,938,000		—		5,938,000
Total assets	$	—	$	7,059,000	$	—	$	7,059,000

Estimated Fair Value of Financial Instruments

The carrying amount and estimated fair values for financial instruments as of March 31, 2019 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Securities to be held to maturity	$	281,219,000	$	282,568,000	$	—	$	282,568,000	$	—
Loans (net of allowance for loan losses)
Commercial
Real estate	353,521,000		347,398,000		—		422,000		346,976,000
Construction	33,852,000		33,266,000		—		—		33,266,000
Other	201,459,000		199,700,000		—		5,458,000		194,242,000
Municipal	54,217,000		53,179,000		—		—		53,179,000
Residential
Term	472,941,000		463,150,000		—		625,000		462,525,000
Construction	18,415,000		18,034,000		—		—		18,034,000
Home equity line of credit	94,957,000		92,834,000		—		14,000		92,820,000
Consumer	23,787,000		22,124,000		—		—		22,124,000
Total loans	1,253,149,000		1,229,685,000		—		6,519,000		1,223,166,000
Mortgage servicing rights	1,356,000		2,410,000		—		2,410,000		—
Financial liabilities
Local certificates of deposit	$	293,980,000	$	293,325,000	$	—	$	293,325,000	$	—
National certificates of deposit	418,496,000		419,285,000		—		419,285,000		—
Total certificates of deposits	712,476,000		712,610,000		—		712,610,000		—
Repurchase agreements	30,309,000		30,276,000		—		30,276,000		—
Federal Home Loan Bank advances	140,110,000		139,565,000		—		139,565,000		—
Total borrowed funds	170,419,000		169,841,000		—		169,841,000		—

The carrying amounts and estimated fair values for financial instruments as of December 31, 2018 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Securities to be held to maturity	$	255,663,000	$	250,900,000	$	—	$	250,900,000	$	—
Loans (net of allowance for loan losses)
Commercial
Real estate	349,243,000		340,526,000		—		423,000		340,103,000
Construction	27,018,000		26,344,000		—		—		26,344,000
Other	192,420,000		189,842,000		—		6,096,000		183,746,000
Municipal	51,101,000		50,965,000		—		—		50,965,000
Residential
Term	467,760,000		451,323,000		—		793,000		450,530,000
Construction	17,705,000		17,083,000		—		—		17,083,000
Home equity line of credit	97,650,000		95,175,000		—		103,000		95,072,000
Consumer	24,154,000		22,530,000		—		—		22,530,000
Total loans	1,227,051,000		1,193,788,000		—		7,415,000		1,186,373,000
Mortgage servicing rights	1,354,000		2,586,000		—		2,586,000		—
Financial liabilities
Local certificates of deposit	$	284,482,000	$	281,282,000	$	—	$	281,282,000	$	—
National certificates of deposit	306,927,000		307,508,000		—		307,508,000		—
Total deposits	591,409,000		588,790,000		—		588,790,000		—
Repurchase agreements	40,205,000		40,161,000		—		40,161,000		—
Federal Home Loan Bank advances	170,112,000		169,240,000		—		169,240,000		—
Total borrowed funds	210,317,000		209,401,000		—		209,401,000		—

The carrying amount and estimated fair values for financial instruments as of March 31, 2018 were as follows:



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Securities to be held to maturity	$	258,690,000	$	255,851,000	$	—	$	255,851,000	$	—
Loans (net of allowance for loan losses)
Commercial
Real estate	335,275,000		326,030,000		—		3,000		326,027,000
Construction	43,385,000		42,189,000		—		—		42,189,000
Other	173,960,000		171,045,000		—		5,495,000		165,550,000
Municipal	35,440,000		34,972,000		—		—		34,972,000
Residential
Term	438,765,000		430,023,000		—		334,000		429,689,000
Construction	15,814,000		15,587,000		—				15,587,000
Home equity line of credit	109,525,000		108,047,000		—		106,000		107,941,000
Consumer	24,881,000		24,178,000		—		—		24,178,000
Total loans	1,177,045,000		1,152,071,000		—		5,938,000		1,146,133,000
Mortgage servicing rights	1,280,000		2,518,000		—		2,518,000		—
Financial liabilities
Local certificates of deposit	260,450,000		255,579,000		—		255,579,000		—
National certificates of deposit	374,297,000		374,095,000		—		374,095,000		—
Total certificates of deposits	634,747,000		629,674,000		—		629,674,000		—
Repurchase agreements	67,182,000		64,361,000		—		64,361,000		—
Federal Home Loan Bank advances	177,047,000		175,308,000		—		175,308,000		—
Total borrowed funds	244,229,000		239,669,000		—		239,669,000		—