Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented.



(in thousands)			Fair Value Measurements Using
Measured at Fair Value on a Recurring Basis:	Total		Level 1		Level 2		Level 3
September 30, 2019
U.S. government agency securities	$	16,490	$	—	$	16,490	$	—
State, county and municipals	147,786		—		147,786		—
Mortgage-backed securities	171,877		—		171,877		—
Corporate debt securities	83,147		—		80,317		2,830
Securities AFS	$	419,300	$	—	$	416,470	$	2,830
Other investments (equity securities)	$	4,080	$	4,080	$	—	$	—
December 31, 2018
U.S. government agency securities	$	21,649	$	—	$	21,649	$	—
State, county and municipals	160,526		—		160,460		66
Mortgage-backed securities	131,644		—		131,644		—
Corporate debt securities	86,325		—		77,901		8,424
Securities AFS	$	400,144	$	—	$	391,654	$	8,490
Other investments (equity securities)	$	2,650	$	2,650	$	—	$	—

Schedule of changes in the Level 3 securities AFS measured at fair value on a recurring basis

The following table presents the changes in the Level 3 securities AFS measured at fair value on a recurring basis.



(in thousands)	Nine Months Ended			Year Ended
Level 3 Fair Value Measurements:	September 30, 2019			December 31, 2018
Balance at beginning of year	$	8,490		$	9,151
Paydowns/Sales/Settlements	(5,660		)	(661		)
Balance at end of period	$	2,830		$	8,490

Schedule of assets measured at fair value on a nonrecurring basis

The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall.



(in thousands)			Fair Value Measurements Using
Measured at Fair Value on a Nonrecurring Basis:	Total		Level 1		Level 2		Level 3
September 30, 2019
Impaired loans	$	12,311	$	—	$	—	$	12,311
Other real estate owned (“OREO”)	1,325		—		—		1,325
MSR asset	6,960		—		—		6,960
December 31, 2018
Impaired loans	$	9,939	$	—	$	—	$	9,939
OREO	420		—		—		420
MSR asset	6,347		—		—		6,347

Schedule of estimated fair values of financial instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are shown below.



September 30, 2019
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	143,969	$	143,969	$	143,969	$	—	$	—
Certificates of deposit in other banks	5,395		5,390		—		5,390		—
Securities AFS	419,300		419,300		—		416,470		2,830
Other investments, including equity securities	20,697		20,697		4,080		13,259		3,358
Loans held for sale	10,564		10,710		—		10,710		—
Loans, net	2,229,311		2,244,410		—		—		2,244,410
BOLI	71,796		71,796		71,796		—		—
MSR asset	4,945		6,960		—		—		6,960
Financial liabilities:
Deposits	$	2,584,447	$	2,584,662	$	—	$	—	$	2,584,662
Long-term borrowings	57,495		56,679		—		15,135		41,544



December 31, 2018
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	249,526	$	249,526	$	249,526	$	—	$	—
Certificates of deposit in other banks	993		993		—		993		—
Securities AFS	400,144		400,144		—		391,654		8,490
Other investments, including equity securities	17,997		17,997		2,650		13,189		2,158
Loans held for sale	1,639		1,662		—		1,662		—
Loans, net	2,153,028		2,139,322		—		—		2,139,322
BOLI	66,310		66,310		66,310		—		—
MSR asset	3,749		6,347		—		—		6,347
Financial liabilities:
Deposits	$	2,614,138	$	2,614,995	$	—	$	—	$	2,614,995
Long-term borrowings	77,305		75,923		—		34,907		41,016