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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2019
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 September 30, 2019 Using
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant
Unobservable Inputs (Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
 
Obligations of State and Political Subdivisions
 
$
—

 
$
313,442

 
$
4,030

 
$
317,472

MBS/CMO - Residential
 
—

 
531,973

 
—

 
531,973

Total Securities
 
$
—

 
$
845,415

 
$
4,030

 
$
849,445

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$
—

 
$
19,156

 
$
—

 
$
19,156

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$
—

 
$
3,985

 
$
—

 
$
3,985

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$
—

 
$
4,353

 
$
—

 
$
4,353


 
 
Fair Value Measurements at December 31, 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:
 
 
 
 
 
 
 
 
Obligations of State and Political Subdivisions
 
$
—

 
$
289,542

 
$
4,991

 
$
294,533

MBS/CMO - Residential
 
—

 
518,078

 
—

 
518,078

Total Securities
 
$
—

 
$
807,620

 
$
4,991

 
$
812,611

 
 
 
 
 
 
 
 
 
Loans Held-for-Sale
 
$
—

 
$
4,263

 
$
—

 
$
4,263

 
 
 
 
 
 
 
 
 
Derivative Assets
 
$
—

 
$
1,713

 
$
—

 
$
1,713

 
 
 
 
 
 
 
 
 
Derivative Liabilities
 
$
—

 
$
1,734

 
$
—

 
$
1,734
Schedule of Reconciliation of all Assets Measured at Fair Value on Recurring Basis, Using Significant Unobservable Inputs (Level 3)
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2019 and 2018:
 
 
Obligations of State and Political Subdivisions
 
 
2019
 
2018
 
 
 
 
 
Balance of Recurring Level 3 Assets at July 1
 
$
4,506

 
$
5,167

Total Gains or Losses Included in Other Comprehensive Income
 
(1
)
 
(44
)
Maturities / Calls
 
(475
)
 
(460
)
Purchases
 
—

 
—

Balance of Recurring Level 3 Assets at September 30
 
$
4,030

 
$
4,663

 

Obligations of State and Political Subdivisions
 

2019

2018







Balance of Recurring Level 3 Assets at January 1

$
4,991


$
5,649

Total Gains or Losses Included in Other Comprehensive Income

(16
)

(66
)
Maturities / Calls

(945
)

(920
)
Purchases

—


—

Balance of Recurring Level 3 Assets at September 30

$
4,030


$
4,663
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 September 30, 2019 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
 
$
—

 
$
—

 
$
2,688

 
$
2,688

Commercial Real Estate Loans
 
—

 
—

 
488

 
488

 
 
 
Fair Value Measurements at December 31, 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
 
$
—

 
$
—

 
$
2,210

 
$
2,210

Commercial Real Estate Loans
 
—

 
—

 
2,528

 
2,528
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 September 30, 2019 and December 31, 2018:
September 30, 2019
 
Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range (Weighted Average)

 








Impaired Loans - Commercial and Industrial Loans
 
$
2,688

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
29%-100%
(61%)
Impaired Loans - Commercial Real Estate Loans
 
$
488


Sales comparison approach

Adjustment for physical condition of comparable properties sold

47%-89%
(64%)


December 31, 2018
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range (Weighted Average)
 
 
 
 
 
 
 
 
 
Impaired Loans - Commercial and Industrial Loans
 
$
2,210

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
0%-100%
(99%)
Impaired Loans - Commercial Real Estate Loans
 
$
2,528

 
Sales comparison approach
 
Adjustment for physical condition of comparable properties sold
 
22%-76%
(55%)
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 September 30, 2019 and December 31, 2018. 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 tables below for September 30, 2019 and December 31, 2018, present the fair values measured using an exit price notion.
 
 
 
 
Fair Value Measurements at
September 30, 2019 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
89,134

 
$
64,791

 
$
24,343

 
$
—

 
$
89,134

Interest Bearing Time Deposits with Banks
 
1,985

 
—

 
1,985

 
—

 
1,985

Loans, Net
 
3,037,862

 
—

 
—

 
3,027,538

 
3,027,538

Accrued Interest Receivable
 
17,824

 
—

 
4,347

 
13,477

 
17,824

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(2,737,654
)
 
(2,737,654
)
 
—

 
—

 
(2,737,654
)
Time Deposits
 
(693,632
)
 
—

 
(685,518
)
 
—

 
(685,518
)
Short-term Borrowings
 
(126,123
)
 
(92,000
)
 
(34,123
)
 
—

 
(126,123
)
Long-term Debt
 
(190,516
)
 
—

 
(152,854
)
 
(15,168
)
 
(168,022
)
Accrued Interest Payable
 
(2,834
)
 
—

 
(2,798
)
 
(36
)
 
(2,834
)


 
 
 
 
Fair Value Measurements at
December 31, 2018 Using
 
 
Carrying Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets:
 
 

 
 

 
 

 
 

 
 

Cash and Short-term Investments
 
$
96,550

 
$
64,549

 
$
32,001

 
$
—

 
$
96,550

Interest Bearing Time Deposits with Banks
 
250

 
—

 
250

 
—

 
250

Loans, Net
 
2,707,498

 
—

 
—

 
2,689,393

 
2,689,393

Accrued Interest Receivable
 
16,634

 
—

 
4,143

 
12,491

 
16,634

Financial Liabilities:
 
 

 
 

 
 

 
 

 
 

Demand, Savings, and Money Market Deposits
 
(2,484,149
)
 
(2,848,149
)
 
—

 
—

 
(2,848,149
)
Time Deposits
 
(588,483
)
 
—

 
(586,338
)
 
—

 
(586,338
)
Short-term Borrowings
 
(249,774
)
 
(204,500
)
 
(45,274
)
 
—

 
(249,774
)
Long-term Debt
 
(126,635
)
 
—

 
(117,513
)
 
(11,315
)
 
(128,828
)
Accrued Interest Payable
 
(1,740
)
 
—

 
(1,718
)
 
(22
)
 
(1,740
)