Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019, December 31, 2018 and June 30, 2018.

	At June 30, 2019
	Level 1		Level 2		Level 3		Total
Securities available for sale
U.S. Government-sponsored agencies	$	—	$	5,012,000	$	—	$	5,012,000
Mortgage-backed securities	—		312,625,000		—		312,625,000
State and political subdivisions	—		4,933,000		—		4,933,000
Total securities available for sale	—		322,570,000		—		322,570,000
Interest rate swap agreements	—		723,000		—		723,000
Customer loan interest swap agreements	—		991,000		—		991,000
Total interest rate swap agreements	$	—	$	1,714,000	$	—	$	1,714,000
Total assets	$	—	$	324,284,000	$	—	$	324,284,000

	At June 30, 2019
	Level 1		Level 2		Level 3		Total
Interest rate swap agreements	$	—	$	628,000	$	—	$	629,000
Customer loan interest swap agreements	—		991,000		—		991,000
Total liabilities	$	—	$	1,619,000	$	—	$	1,620,000

	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	—		1,889,000		—		1,889,000
Total assets	$	—	$	319,305,000	$	—	$	319,305,000

	At December 31, 2018
	Level 1		Level 2		Level 3		Total
Interest rate swap agreements	$	—	$	69,000	$	—	$	69,000
Total liabilities	$	—	$	69,000	$	—	$	69,000

	At June 30, 2018
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	297,378,000	$	—	$	297,378,000
State and political subdivisions	—		4,692,000		—		4,692,000
Total securities available for sale	—		302,070,000		—		302,070,000
Interest rate swap agreements	—		2,616,000		—		2,616,000
Total assets	$	—	$	304,686,000	$	—	$	304,686,000

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 June 30, 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 $1,594,000, $2,096,000 and $1,893,000 at June 30, 2019, December 31, 2018, and June 30, 2018, respectively.

	At June 30, 2019
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	289,000	$	—	$	289,000
Impaired loans	—		6,693,000		—		6,693,000
Total assets	$	—	$	6,982,000	$	—	$	6,982,000

	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 June 30, 2018
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	609,000	$	—	$	609,000
Impaired loans	—		6,387,000		—		6,387,000
Total assets	$	—	$	6,996,000	$	—	$	6,996,000

Estimated Fair Value of Financial Instruments

The carrying amount and estimated fair values for financial instruments as of June 30, 2019 were as follows:

	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Securities to be held to maturity	$	302,527,000	$	308,075,000	$	—	$	308,075,000	$	—
Loans (net of allowance for loan losses)
Commercial
Real estate	355,285,000		350,390,000		—		622,000		349,768,000
Construction	32,417,000		31,970,000		—		—		31,970,000
Other	202,004,000		200,804,000		—		5,315,000		195,489,000
Municipal	36,083,000		35,825,000		—		—		35,825,000
Residential
Term	480,032,000		475,560,000		—		745,000		474,815,000
Construction	13,212,000		13,089,000		—		—		13,089,000
Home equity line of credit	94,009,000		93,260,000		—		11,000		93,249,000
Consumer	24,619,000		22,917,000		—		—		22,917,000
Total loans	1,237,661,000		1,223,815,000		—		6,693,000		1,217,122,000
Mortgage servicing rights	1,368,000		2,087,000		—		2,087,000		—
Financial liabilities
Local certificates of deposit	$	281,903,000	$	283,746,000	$	—	$	283,746,000	$	—
National certificates of deposit	435,095,000		436,682,000		—		436,682,000		—
Total certificates of deposits	716,998,000		720,428,000		—		720,428,000		—
Repurchase agreements	40,954,000		40,912,000		—		40,912,000		—
Federal Home Loan Bank advances	140,904,000		139,880,000		—		139,880,000		—
Total borrowed funds	181,858,000		180,792,000		—		180,792,000		—

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 June 30, 2018 were as follows:

	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Securities to be held to maturity	$	260,077,000	$	256,316,000	$	—	$	256,316,000	$	—
Loans (net of allowance for loan losses)
Commercial
Real estate	345,853,000		338,784,000		—		423,000		338,361,000
Construction	39,852,000		39,037,000		—		—		39,037,000
Other	180,750,000		178,904,000		—		5,527,000		173,377,000
Municipal	48,693,000		47,790,000		—		—		47,790,000
Residential
Term	452,289,000		441,029,000		—		339,000		440,690,000
Construction	14,550,000		14,443,000		—		—		14,443,000
Home equity line of credit	106,892,000		105,264,000		—		98,000		105,166,000
Consumer	24,089,000		23,322,000		—		—		23,322,000
Total loans	1,212,968,000		1,188,573,000		—		6,387,000		1,182,186,000
Mortgage servicing rights	1,285,000		2,581,000		—		2,581,000		—
Financial liabilities
Local certificates of deposit	267,932,000		263,342,000		—		263,342,000		—
National certificates of deposit	389,459,000		389,062,000		—		389,062,000		—
Total certificates of deposits	657,391,000		652,404,000		—		652,404,000		—
Repurchase agreements	91,764,000		88,560,000		—		88,560,000		—
Federal Home Loan Bank advances	205,691,000		204,476,000		—		204,476,000		—
Total borrowed funds	297,455,000		293,036,000		—		293,036,000		—