Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value of Assets and Liabilities

Schedule of financial assets measured at fair value on a recurring basis

	March 31, 2015
	Fair Value Measurements Using						Assets at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	20,540	$	—	$	20,540
Mortgage-backed securities		—		68,483		—		68,483
Obligations of states and political subdivisions		—		131,811		—		131,811
Total securities available for sale		—		220,834		—		220,834
Loans held for sale		—		41,477		—		41,477
Derivative asset - forward sales commitments		—		723		—		723
Total assets	$	—	$	263,034	$	—	$	263,034
Liabilities:
Derivative liability - cash flow hedges	$	—	$	251	$	—	$	251

	December 31, 2014
	Fair Value Measurements Using						Assets at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	22,934	$	—	$	22,934
Mortgage-backed securities		—		67,619		—		67,619
Obligations of states and political subdivisions		—		131,344		—		131,344
Total securities available for sale		—		221,897		—		221,897
Loans held for sale		—		28,279		—		28,279
Derivative asset - IRLC		—		448		—		448
Derivative asset - cash flow hedges		—		40		—		40
Total assets	$	—	$	250,664	$	—	$	250,664
Liabilities:
Derivative liability - cash flow hedges	$	—	$	143	$	—	$	143

Schedule of financial assets measured at fair value on a nonrecurring basis

	March 31, 2015
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	2,301	$	2,301
Other real estate owned net		—		—		790		790
Total	$	—	$	—	$	3,091	$	3,091

	December 31, 2014
	Fair Value Measurements Using						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Impaired loans, net	$	—	$	—	$	1,224	$	1,224
Other real estate owned, net		—		—		786		786
Total	$	—	$	—	$	2,010	$	2,010

Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a non-recurring basis

	Fair Value Measurements at March 31, 2015
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range of Inputs
Impaired loans, net	$	2,301	Appraisals	Discount to reflect current market conditions and estimated selling costs	10% - 50%
Other real estate owned, net		790	Appraisals	Discount to reflect current market conditions and estimated selling costs	0% - 40%
Total	$	3,091

Schedule of carrying amounts and estimated fair values by balance sheet grouping

	Carrying		Fair Value Measurements at March 31, 2015 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	173,435	$	173,435	$	—	$	—	$	173,435
Securities available for sale		220,834		—		220,834		—		220,834
Loans, net		808,153		—		—		820,189		820,189
Loans held for sale		41,477		—		41,477		—		41,477
Derivative asset - forward sales commitments		723		—		723		—		723
Bank-owned life insurance		14,582		—		14,582		—		14,582
Accrued interest receivable		6,079		6,079		—		—		6,079
Financial liabilities:
Demand deposits	$	692,144	$	692,144	$	—	$	—	$	692,144
Time deposits		359,723		—		362,675		—		362,675
Borrowings		165,672		—		158,660		—		158,660
Derivative liability - cash flow hedges		251		—		251		—		251
Accrued interest payable		730		730		—		—		730

	Carrying		Fair Value Measurements at December 31, 2014 Using						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	167,616	$	167,616	$	—	$	—	$	167,616
Securities available for sale		221,897		—		221,897		—		221,897
Loans, net		800,198		—		—		813,010		813,010
Loans held for sale		28,279		—		28,279		—		28,279
Derivative asset - IRLC		448		—		448		—		448
Derivative asset - cash flow hedges		40		—		40		—		40
Bank-owned life insurance		14,484		—		14,484		—		14,484
Accrued interest receivable		6,421		6,421		—		—		6,421
Financial liabilities:
Demand deposits	$	659,594	$	659,594	$	—	$	—	$	659,594
Time deposits		366,507		—		369,538		—		369,538
Borrowings		167,027		—		160,052		—		160,052
Derivative liability - cash flow hedges		143		—		143		—		143
Accrued interest payable		740		740		—		—		740