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Fair Value (Tables)
9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are as follows at September 30, 2018 and December 31, 2017:
 
 
 
 
Fair Value Measurements at September 30, 2018 Using
 
 
 
Quoted Prices in
Active Markets 
for
Identical Assets
 
Significant Other
Observable Inputs
 
Significant
Unobservable
Inputs
Description
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Securities Available For Sale:
 
 
 
 
 
 
 
U.S. Government sponsored entities
$
145,509

 
$

 
$
145,509

 
$

States and political subdivisions
138,395

 

 
138,395

 

Residential and multi-family mortgage
194,635

 

 
194,635

 

Corporate notes and bonds
12,036

 

 
12,036

 

Pooled SBA
30,833

 

 
30,833

 

Other
926

 
926

 

 

Total Securities Available For Sale
$
522,334

 
$
926

 
$
521,408

 
$

Interest Rate swaps
$
191

 
$

 
$
191

 
$

Trading Securities:
 
 
 
 
 
 
 
Corporate equity securities
$
6,643

 
$
6,643

 

 

Mutual funds
1,687

 
1,687

 

 

Certificates of deposit
228

 
228

 

 

Corporate notes and bonds
278

 
278

 

 

U.S. Government sponsored entities
51

 

 
51

 

Total Trading Securities
$
8,887

 
$
8,836

 
$
51

 
$

Liabilities,
 
 
 
 
 
 
 
Interest rate swaps
$
(182
)
 
$

 
$
(182
)
 
$

 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements at December 31, 2017 Using
 
 
 
Quoted Prices in
 
 
 
Significant
 
 
 
Active Markets 
for
 
Significant Other
 
Unobservable
 
 
 
Identical Assets
 
Observable Inputs
 
Inputs
Description
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Securities Available For Sale:
 
 
 
 
 
 
 
U.S. Government sponsored entities
$
108,148

 
$

 
$
108,148

 
$

States and political subdivisions
137,723

 

 
137,723

 

Residential and multi-family mortgage
109,636

 

 
109,636

 

Corporate notes and bonds
17,200

 

 
17,200

 

Pooled SBA
36,040

 

 
36,040

 

Other
962

 
962

 

 

Total Securities Available For Sale
$
409,709

 
$
962

 
$
408,747

 
$

Interest Rate swaps
$
149

 
$

 
$
149

 
$

Trading Securities:
 
 
 
 
 
 
 
Corporate equity securities
5,125

 
5,125

 

 

Mutual funds
1,499

 
1,499

 

 

Certificates of deposit
220

 
220

 

 

Corporate notes and bonds
254

 
254

 

 

U.S. Government sponsored entities
52

 

 
52

 

Total Trading Securities
$
7,150

 
$
7,098

 
52

 

Liabilities,
 
 
 
 
 
 
 
Interest rate swaps
$
(310
)
 
$

 
$
(310
)
 
$

Securities Available for Sale Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)
The table below presents a reconciliation of the fair value of securities available for sale measured on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2018 and 2017:
 
2018
 
2017
Balance, January 1
$

 
$
2,049

Total gains:
 
 
 
Included in other comprehensive income (unrealized)

 
134

Sale of available-for-sale securities

 
(2,183
)
Balance, September 30
$

 
$

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis
Assets and liabilities measured at fair value on a non-recurring basis are as follows at September 30, 2018 and December 31, 2017:

 
 
 
Fair Value Measurements at September 30, 2018 Using
 
 
 
Quoted Prices in
Active Markets 
for
Identical Assets
 
Significant Other
Observable Inputs
 
Significant
Unobservable
Inputs
Description
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
Commercial mortgages
$
324

 

 

 
$
324

 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements at December 31, 2017 Using
 
 
 
Quoted Prices in
 
 
 
Significant
 
 
 
Active Markets 
for
 
Significant Other
 
Unobservable
 
 
 
Identical Assets
 
Observable Inputs
 
Inputs
Description
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Impaired loans:
 
 
 
 
 
 
 
Commercial mortgages
$
11

 

 

 
$
11

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis
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, 2018:
 
 
Fair
value
 
Valuation Technique
 
Unobservable Inputs
 
Weighted Average (Range)
Impaired loans – commercial mortgages
$
324

 
Valuation of third party appraisal on underlying collateral
 
Loss severity rates
 
15% (10-15%)
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 December 31, 2017:
 
Fair
value
 
Valuation Technique
 
Unobservable Inputs
 
Weighted Average (Range)
Impaired loans – commercial mortgages
$
11

 
Valuation of third party appraisal on underlying collateral
 
Loss severity rates
 
10% (10%)
Carrying Amount and Fair Value of Financial Instruments
The following table presents the carrying amount and fair value of financial instruments at September 30, 2018:
 
 
Carrying
 
Fair Value Measurement Using:
 
Total
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
36,500

 
$
36,500

 
$

 
$

 
$
36,500

Securities available for sale
522,334

 
926

 
521,408

 

 
522,334

Trading securities
8,887

 
8,836

 
51

 

 
8,887

Loans held for sale
775

 

 
775

 

 
775

Net loans
2,364,445

 

 

 
2,334,576

 
2,334,576

FHLB and other restricted interests
16,885

 
n/a

 
n/a

 
n/a

 
n/a

Other equity interests
6,951

 
 
 
 
 
 
 
6,951

Interest rate swaps
191

 

 
191

 

 
191

Accrued interest receivable
11,221

 
7

 
3,748

 
7,466

 
11,221

LIABILITIES
 
 
 
 
 
 
 
 
 
Deposits
$
(2,522,379
)
 
$
(2,132,769
)
 
$
(391,848
)
 
$

 
$
(2,524,617
)
FHLB and other borrowings
(252,422
)
 

 
(248,986
)
 

 
(248,986
)
Subordinated debentures
(70,620
)
 

 
(68,202
)
 

 
(68,202
)
Interest rate swaps
(182
)
 

 
(182
)
 

 
(182
)
Accrued interest payable
(820
)
 

 
(820
)
 

 
(820
)








The following table presents the carrying amount and fair value of financial instruments at December 31, 2017:
 
Carrying
 
Fair Value Measurement Using:
 
Total
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
35,345

 
$
35,345

 
$

 
$

 
$
35,345

Securities available for sale
409,709

 
962

 
408,747

 

 
409,709

Trading securities
7,150

 
7,098

 
52

 

 
7,150

Loans held for sale
852

 

 
853

 

 
853

Net loans
2,126,266

 

 

 
2,126,824

 
2,126,824

FHLB and other restricted interests
17,035

 
n/a

 
n/a

 
n/a

 
n/a

Other equity interests
4,482

 
 
 
 
 
 
 
4,482

Interest rate swaps
149

 

 
149

 

 
149

Accrued interest receivable
9,254

 
6

 
2,651

 
6,597

 
9,254

LIABILITIES
 
 
 
 
 
 
 
 
 
Deposits
$
(2,167,815
)
 
$
(1,802,844
)
 
$
(362,756
)
 
$

 
$
(2,165,600
)
FHLB and other borrowings
(257,359
)
 

 
(257,361
)
 

 
(257,361
)
Subordinated debentures
(70,620
)
 

 
(63,575
)
 

 
(63,575
)
Interest rate swaps
(310
)
 

 
(310
)
 

 
(310
)
Accrued interest payable
(554
)
 

 
(554
)
 

 
(554
)