Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated.

			Fair Value Measurements At March 31, 2017, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	3,217	$	-	$	3,217	$	-
US Treasury Notes		104,419		104,419		-		-
US Govt SBA		34,734		-		34,734		-
Mortgage Backed Securities		309,462		-		309,462		-
Other		1,010		200		310		500
Total Assets Measured at Fair Value On a Recurring Basis	$	452,842	$	104,619	$	347,723	$	500

			Fair Value Measurements At December 31, 2016, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	3,241	$	-	$	3,241	$	-
US Treasury Notes		134,428		134,428		-		-
US Govt SBA		36,314		-		36,314		-
Mortgage Backed Securities		273,270		-		273,270		-
Other		1,010		200		310		500
Total Assets Measured at Fair Value On a Recurring Basis	$	448,263	$	134,628	$	313,135	$	500

			Fair Value Measurements
			At March 31, 2016, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	63,346	$	-	$	63,346	$	-
US Treasury Notes		65,788		65,788		-		-
Mortgage Backed Securities		212,127		-		212,127		-
Other		510		200		310		-
Total Assets Measured at Fair Value On a Recurring Basis	$	341,771	$	65,988	$	275,783	$	-

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following tables present information about the Company’s other real estate and impaired loans or leases, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans or leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve.

			Fair Value Measurements At March 31, 2017, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans
Commercial Real Estate	$	2,539	$	-	$	-	$	2,539
Residential 1st Mortgage		389		-		-		389
Home Equity Lines and Loans		82		-		-		82
Agricultural		367		-		-		367
Commercial		1,365		-		-		1,365
Total Impaired Loans		4,742		-		-		4,742
Other Real Estate
Home Equity Lines and Loans		685		-		-		685
Real Estate Construction		1,467		-		-		1,467
Total Other Real Estate		2,152		-		-		2,152
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	6,894	$	-	$	-	$	6,894

			Fair Value Measurements At December 31, 2016, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans:
Residential 1st Mortgage	$	480	$	-	$	-	$	480
Home Equity Lines and Loans		83		-		-		83
Agricultural		497		-		-		497
Commercial		833		-		-		833
Total Impaired Loans		1,893		-		-		1,893
Other Real Estate:
Home Equity Lines and Loans		785		-		-		785
Real Estate Construction		2,960		-		-		2,960
Total Other Real Estate		3,745		-		-		3,745
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	5,638	$	-	$	-	$	5,638

			Fair Value Measurements At March 31, 2016, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans
Residential 1st Mortgage	$	229	$	-	$	-	$	229
Home Equity Lines and Loans		365		-		-		365
Agricultural		298		-		-		298
Commercial		874		-		-		874
Total Impaired Loans		1,766		-		-		1,766
Other Real Estate
Real Estate Construction		585		-		-		585
Total Other Real Estate		585		-		-		585
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	2,351	$	-	$	-	$	2,351

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on a Nonrecurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at March 31, 2017:

(in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans
Commercial Real Estate	$	2,539	Income Approach	Capitalization Rate		3.25% - 3.25%, 3.25%
Residential 1st Mortgage	$	389	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		2% -4%, 3%
Home Equity Lines and Loans	$	82	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 1%
Agricultural	$	307	Income Approach	Capitalization Rate		6.25% - 6.25%, 6.25%
Agricultural	$	60	Collateral Approach	Collateral Value		10% - 10%, 10%
Commercial	$	1,365	Income Approach	Capitalization Rate		3.25% - 3.25%, 3.25%

Other Real Estate
Home Equity Lines and Loans	$	685	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		10% - 10%, 10%
Real Estate Construction	$	1,467	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		10% - 10%, 10%