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Fair Value (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:
 
 
Fair Value Measurements at June 30, 2018 Using
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant
Unobservable Inputs (Level 3)
 
Total
Obligations of State and Political Subdivisions
 
$

 
$
273,670

 
$
5,167

 
$
278,837

MBS/CMO - Residential
 

 
460,644

 

 
460,644

Equity Securities
 

 

 
353

 
353

Total Securities and Other Investments
 
$

 
$
734,314

 
$
5,520

 
$
739,834

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$

 
$
9,552

 
$

 
$
9,552

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$

 
$
2,845

 
$

 
$
2,845

 
 
 
 
 
 
 
 
 
Mortgage Servicing Rights
 
$

 
$
1,052

 
$

 
$
1,052

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$

 
$
2,797

 
$

 
$
2,797


 
 
Fair Value Measurements at December 31, 2017 Using
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant
Unobservable  Inputs (Level 3)
 
Total
Obligations of State and Political Subdivisions
 
$

 
$
267,660

 
$
5,649

 
$
273,309

MBS/CMO - Residential
 

 
467,332

 

 
467,332

Equity Securities
 

 

 
353

 
353

Total Securities and Other Investments
 
$

 
$
734,992

 
$
6,002

 
$
740,994

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$

 
$
6,719

 
$

 
$
6,719

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$

 
$
1,564

 
$

 
$
1,564

 
 
 
 
 
 
 
 
 
Mortgage Servicing Rights
 
$

 
$
547

 
$

 
$
547

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$

 
$
1,633

 
$

 
$
1,633

Schedule of Reconciliation of all Assets Measured at Fair Value on Recurring Basis, Using Significant Unobservable Inputs (Level 3)
The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2018 and 2017:
 
 
Obligations of State and Political Subdivisions
 
Equity Securities
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Balance of Recurring Level 3 Assets at April 1
 
$
5,171

 
$
6,447

 
$
353

 
$
353

Total Gains or Losses Included in Other Comprehensive Income
 
(4
)
 
17

 

 

Maturities / Calls
 

 

 

 

Purchases
 

 

 

 

Balance of Recurring Level 3 Assets at June 30
 
$
5,167

 
$
6,464

 
$
353

 
$
353

 

Obligations of State and Political Subdivisions

Equity Securities
 

2018

2017

2018

2017













Balance of Recurring Level 3 Assets at January 1

$
5,649


$
7,295


$
353


$
353

Total Gains or Losses Included in Other Comprehensive Income

(22
)

34





Maturities / Calls

(460
)

(865
)




Purchases








Balance of Recurring Level 3 Assets at June 30

$
5,167


$
6,464


$
353


$
353

Schedule of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis
Assets and liabilities measured at fair value on a non-recurring basis are summarized below:
 
 
Fair Value Measurements at June 30, 2018 Using
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable 
Inputs (Level 3)
 
Total
Assets:
 
 

 
 

 
 

 
 

Impaired Loans
 
 

 
 

 
 

 
 

Commercial and Industrial Loans
 
$

 
$

 
$
2,468

 
$
2,468

Commercial Real Estate Loans
 

 

 
3,741

 
3,741

 
 
 
Fair Value Measurements at December 31, 2017 Using
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable 
Inputs (Level 3)
 
Total
Assets:
 
 

 
 

 
 

 
 

Impaired Loans
 
 

 
 

 
 

 
 

Commercial and Industrial Loans
 
$

 
$

 
$
3,354

 
$
3,354

Commercial Real Estate Loans
 

 

 
3,438

 
3,438

Schedule of Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques
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 June 30, 2018 and December 31, 2017:
June 30, 2018
 
Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range (Weighted Average)

 








Impaired Loans - Commercial and Industrial Loans
 
$
2,468

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
0%-100%
(89%)
Impaired Loans - Commercial Real Estate Loans
 
$
3,741


Sales comparison approach

Adjustment for physical condition of comparable properties sold

17%-76%
(46%)


December 31, 2017
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range (Weighted Average)
 
 
 
 
 
 
 
 
 
Impaired Loans - Commercial and Industrial Loans
 
$
3,354

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
0%-95%
(84%)
Impaired Loans - Commercial Real Estate Loans
 
$
3,438

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
30%-76%
(47%)
Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments
The carrying amounts and estimated fair values of the Company’s financial instruments not previously presented are provided in the tables below for the periods ending June 30, 2018 and December 31, 2017. Not all of the Company’s assets and liabilities are considered financial instruments, and therefore are not included in the tables. Because no active market exists for a significant portion of the Company’s financial instruments, fair value estimates were based on subjective judgments, and therefore cannot be determined with precision. In accordance with the adoption of ASU 2016-01, the table below for June 30, 2018, presents the fair values measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entrance price notion.
 
 
 
 
Fair Value Measurements at
June 30, 2018 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
71,282

 
$
60,244

 
$
11,038

 
$

 
$
71,282

Loans, Net
 
2,296,664

 

 

 
2,259,096

 
2,259,096

FHLB Stock and Other Restricted Stock
 
13,048

 
N/A

 
N/A

 
N/A

 
N/A

Accrued Interest Receivable
 
13,395

 

 
3,809

 
9,586

 
13,395

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(2,241,307
)
 
(2,241,307
)
 

 

 
(2,241,307
)
Time Deposits
 
(360,133
)
 

 
(358,646
)
 

 
(358,646
)
Short-term Borrowings
 
(223,139
)
 

 
(223,139
)
 

 
(223,139
)
Long-term Debt
 
(131,664
)
 

 
(118,614
)
 
(8,459
)
 
(127,073
)
Accrued Interest Payable
 
(1,016
)
 

 
(940
)
 
(76
)
 
(1,016
)

 
 
 
 
Fair Value Measurements at
December 31, 2017 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
70,359

 
$
48,467

 
$
16,349

 
$

 
$
64,816

Loans, Net
 
2,119,152

 

 

 
2,120,154

 
2,120,154

FHLB Stock and Other Restricted Stock
 
13,048

 
N/A

 
N/A

 
N/A

 
N/A

Accrued Interest Receivable
 
13,258

 

 
3,574

 
9,684

 
13,258

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(2,096,167
)
 
(1,096,167
)
 

 

 
(1,096,167
)
Time Deposits
 
(387,885
)
 

 
(388,640
)
 

 
(388,640
)
Short-term Borrowings
 
(133,499
)
 

 
(133,499
)
 

 
(133,499
)
Long-term Debt
 
(141,717
)
 

 
(129,366
)
 
(11,052
)
 
(140,418
)
Accrued Interest Payable
 
(1,058
)
 

 
(1,042
)
 
(16
)
 
(1,058
)