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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are summarized below:

 

 

 

Fair Value Measurements at September 30, 2019 Using:

 

(In Thousands of Dollars)

 

Carrying

Value

 

 

Quoted Prices in

Active Markets

for Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and U.S. government sponsored entities

 

$

4,355

 

 

$

0

 

 

$

4,355

 

 

$

0

 

State and political subdivisions

 

 

238,015

 

 

 

0

 

 

 

238,015

 

 

 

0

 

Corporate bonds

 

 

1,259

 

 

 

0

 

 

 

1,259

 

 

 

0

 

Mortgage-backed securities-residential

 

 

148,712

 

 

 

0

 

 

 

148,707

 

 

 

5

 

Collateralized mortgage obligations

 

 

19,868

 

 

 

0

 

 

 

19,868

 

 

 

0

 

Small Business Administration

 

 

10,984

 

 

 

0

 

 

 

10,984

 

 

 

0

 

Equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities at fair value

 

 

567

 

 

 

567

 

 

 

0

 

 

 

0

 

Other investments measured at net asset value

 

 

7,289

 

 

n/a

 

 

n/a

 

 

n/a

 

Total investment securities

 

$

431,049

 

 

$

567

 

 

$

423,188

 

 

$

5

 

Loan yield maintenance provisions

 

$

2,514

 

 

$

0

 

 

$

2,514

 

 

$

0

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

2,514

 

 

$

0

 

 

$

2,514

 

 

$

0

 

 

 

 

Fair Value Measurements at December 31, 2018 Using:

 

(In Thousands of Dollars)

 

Carrying

Value

 

 

Quoted Prices  in

Active Markets

for Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and U.S. government sponsored entities

 

$

6,009

 

 

$

0

 

 

$

6,009

 

 

$

0

 

State and political subdivisions

 

 

211,944

 

 

 

0

 

 

 

211,944

 

 

 

0

 

Corporate bonds

 

 

1,188

 

 

 

0

 

 

 

1,188

 

 

 

0

 

Mortgage-backed securities-residential

 

 

150,047

 

 

 

0

 

 

 

150,041

 

 

 

6

 

Collateralized mortgage obligations

 

 

21,072

 

 

 

0

 

 

 

21,072

 

 

 

0

 

Small Business Administration

 

 

11,930

 

 

 

0

 

 

 

11,930

 

 

 

0

 

Equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities at fair value

 

 

495

 

 

 

495

 

 

 

0

 

 

 

0

 

Other investments measured at net asset value

 

 

6,635

 

 

n/a

 

 

n/a

 

 

n/a

 

Total investment securities

 

$

409,320

 

 

$

495

 

 

$

402,184

 

 

$

6

 

Loan yield maintenance provisions

 

$

767

 

 

$

0

 

 

$

767

 

 

$

0

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

767

 

 

$

0

 

 

$

767

 

 

$

0

 

 
Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

 

 

Investment Securities Available-for-sale (Level 3)

 

 

 

Three Months ended

September 30,

 

 

Nine Months ended

September 30,

 

(In Thousands of Dollars)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Beginning Balance

 

$

6

 

 

$

7

 

 

$

6

 

 

$

8

 

Transfers from level 2

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Repayments, calls and maturities

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

(2

)

Ending Balance

 

$

5

 

 

$

6

 

 

$

5

 

 

$

6

 
Assets Measured at Fair Value on Non-Recurring Basis

 

Assets measured at fair value on a non-recurring basis are summarized below:

 

 

 

Fair Value Measurements at September 30, 2019 Using:

 

(In Thousands of Dollars)

 

Carrying

Value

 

 

Quoted Prices  in

Active Markets

for Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Farmland

 

$

240

 

 

$

0

 

 

$

0

 

 

$

240

 

1–4 family residential

 

 

183

 

 

 

0

 

 

 

0

 

 

 

183

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1–4 family residential

 

 

74

 

 

 

0

 

 

 

0

 

 

 

74

 

 

 

 

Fair Value Measurements at December 31, 2018 Using:

 

(In Thousands of Dollars)

 

Carrying

Value

 

 

Quoted Prices in

Active Markets

for Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Farmland

 

$

251

 

 

$

0

 

 

$

0

 

 

$

251

 

1–4 family residential

 

 

640

 

 

 

0

 

 

 

0

 

 

 

640

 

Consumer

 

 

7

 

 

 

0

 

 

 

0

 

 

 

7

 

 
Fair Value Measurements for Financial Instruments

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended September 30, 2019 and December 31, 2018:

 

September 30, 2019

Fair value

 

 

Valuation

Technique(s)

 

Unobservable Input(s)

 

Range

(Weighted Average)

Impaired loans

 

 

 

 

 

 

 

 

 

Commercial real estate

$

240

 

 

Sales Comparison

 

Adjustment for differences between comparable sales

 

(22.70%) - 16.16%

9.39%

Residential

 

183

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(24.26%) - 23.74%

14.53%

Other Real Estate owned residential

 

74

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(39.77%) - 32.49%

7.30%

 

December 31, 2018

Fair value

 

 

Valuation

Technique(s)

 

Unobservable Input(s)

 

Range

(Weighted Average)

Impaired loans

 

 

 

 

 

 

 

 

 

Commercial real estate

$

251

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(22.70%) - 16.16%

9.39%

Residential

 

640

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(49.90%) - 45.99%

6.52%

Consumer

 

7

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(5.71%) - 5.71%

(0.00%)

 
Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not previously disclosed at September 30, 2019 and December 31, 2018 are as follows:

 

 

 

 

 

 

 

Fair Value Measurements at September 30, 2019 Using:

 

(In Thousands of Dollars)

 

Carrying

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

85,675

 

 

$

22,383

 

 

$

63,292

 

 

$

0

 

 

$

85,675

 

Restricted stock

 

 

11,729

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

 

Loans held for sale

 

 

2,079

 

 

 

0

 

 

 

2,141

 

 

 

0

 

 

 

2,141

 

Loans, net

 

 

1,769,864

 

 

 

0

 

 

 

0

 

 

 

1,737,273

 

 

 

1,737,273

 

Accrued interest receivable

 

 

7,586

 

 

 

0

 

 

 

2,420

 

 

 

5,166

 

 

 

7,586

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,040,652

 

 

 

1,506,292

 

 

 

534,718

 

 

 

0

 

 

 

2,041,010

 

Short-term borrowings

 

 

31,001

 

 

 

0

 

 

 

31,001

 

 

 

0

 

 

 

31,001

 

Long-term borrowings

 

 

45,323

 

 

 

0

 

 

 

40,799

 

 

 

0

 

 

 

40,799

 

Accrued interest payable

 

 

1,587

 

 

 

61

 

 

 

1,526

 

 

 

0

 

 

 

1,587

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2018 Using:

 

(In Thousands of Dollars)

 

Carrying

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,926

 

 

$

18,042

 

 

$

39,884

 

 

$

0

 

 

$

57,926

 

Restricted stock

 

 

11,737

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

 

Loans held for sale

 

 

1,237

 

 

 

0

 

 

 

1,274

 

 

 

0

 

 

 

1,274

 

Loans, net

 

 

1,722,248

 

 

 

0

 

 

 

0

 

 

 

1,673,626

 

 

 

1,673,626

 

Accrued interest receivable

 

 

7,114

 

 

 

0

 

 

 

2,359

 

 

 

4,755

 

 

 

7,114

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,799,720

 

 

 

1,427,260

 

 

 

367,306

 

 

 

0

 

 

 

1,794,566

 

Short-term borrowings

 

 

244,759

 

 

 

0

 

 

 

244,759

 

 

 

0

 

 

 

244,759

 

Long-term borrowings

 

 

6,033

 

 

 

0

 

 

 

5,847

 

 

 

0

 

 

 

5,847

 

Accrued interest payable

 

 

990

 

 

 

63

 

 

 

927

 

 

 

0

 

 

 

990