Fair Value (Tables)

12 Months Ended

Dec. 31, 2018

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 December 31, 2018 and 2017:



				Fair Value Measurements at December 31, 2018 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	132,694		$	0	$	132,694		$	0
States and political subdivisions	136,031			0		136,031			0
Residential and multi-family mortgage	206,053			0		206,053			0
Corporate notes and bonds	11,777			0		11,777			0
Pooled SBA	29,374			0		29,374			0
Other	934			934		0			0
Total Securities Available For Sale	$	516,863		$	934	$	515,929		$	0
Interest rate swaps	$	485		$	0	$	485		$	0
Trading Securities:
Corporate equity securities	$	5,828		$	5,828	$	0		$	0
Mutual funds	1,058			1,058		0			0
Certificates of deposit	268			268		0			0
Corporate notes and bonds	581			581		0			0
U.S. Government sponsored entities	51			0		51			0
Total Trading Securities	$	7,786		$	7,735	$	51		$	0
Liabilities
Interest rate swaps	$	(686	)	$	0	$	(686	)	$	0



				Fair Value Measurements at December 31, 2017 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Government sponsored entities	$	108,148		$	0	$	108,148		$	0
States and political subdivisions	137,723			0		137,723			0
Residential and multi-family mortgage	109,636			0		109,636			0
Corporate notes and bonds	17,200			0		17,200			0
Pooled SBA	36,040			0		36,040			0
Other	962			962		0			0
Total Securities Available For Sale	$	409,709		$	962	$	408,747		$	0
Interest rate swaps	$	149		$	0	$	149		$	0
Trading Securities:
Corporate equity securities	$	5,125		$	5,125	$	0		$	0
Mutual funds	1,499			1,499		0			0
Certificates of deposit	220			220		0			0
Corporate notes and bonds	254			254		0			0
U.S. Government sponsored entities	52			0		52			0
Total Trading Securities	$	7,150		$	7,098	$	52		$	0
Liabilities
Interest rate swaps	$	(310	)	$	0	$	(310	)	$	0

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 year ended December 31, 2017:



	Pooled trust preferred
Balance, January 1, 2017	$	2,049
Total gains or (losses):
Included in other comprehensive income (loss)	134
Sale of available-for-sale securities	(2,183		)
Balance, December 31, 2017	$	0

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 December 31, 2018 and 2017:



			Fair Value Measurements at December 31, 2018 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial, industrial, and agricultural	$	783	0	0	$	783
Commercial mortgages	$	224	0	0	$	224



			Fair Value Measurements at December 31, 2017 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	11	0	0	$	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 December 31, 2018:



	Fair value	Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial, industrial, and agricultural	$783	Valuation of third party appraisal on underlying collateral	Loss severity rates	55%-60% (57%)
Impaired loans – commercial mortgages	$224	Valuation of third party appraisal on underlying collateral	Loss severity rates	15%-39% (37%)

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	Range (Weighted Average)
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 December 31, 2018:



	Carrying Amount			Fair Value Measurement Using:								Total Fair Value
	Carrying Amount			Level 1			Level 2			Level 3		Total Fair Value
ASSETS
Cash and cash equivalents	$	45,563		$	45,563		$	0		$	0	$	45,563
Securities available for sale	516,863			934			515,929			0		516,863
Trading securities	7,786			7,735			51			0		7,786
Loans held for sale	367			0			368			0		368
Net loans	2,454,853			0			0			2,433,417		2,433,417
FHLB and other equity interests	24,508			n/a			n/a			n/a		n/a
Interest rate swaps	485			0			485			0		485
Accrued interest receivable	10,843			6			3,368			7,469		10,843
LIABILITIES
Deposits	$	(2,610,786	)	$	(2,215,349	)	$	(397,370	)	$	0	$	(2,612,719	)
FHLB and other borrowings	(245,117		)	0			(242,592		)	0		(242,592		)
Subordinated debentures	(70,620		)	0			(65,794		)	0		(65,794		)
Interest rate swaps	(686		)	0			(686		)	0		(686		)
Accrued interest payable	(863		)	0			(863		)	0		(863		)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2017:



	Carrying Amount			Fair Value Measurement Using:								Total Fair Value
	Carrying Amount			Level 1			Level 2			Level 3		Total Fair Value
ASSETS
Cash and cash equivalents	$	35,345		$	35,345		$	0		$	0	$	35,345
Securities available for sale	409,709			962			408,747			0		409,709
Trading securities	7,150			7,098			52			0		7,150
Loans held for sale	852			0			853			0		853
Net loans	2,126,266			0			0			2,126,824		2,126,824
FHLB and other equity interests	21,517			n/a			n/a			n/a		n/a
Interest rate swaps	149			0			149			0		149
Accrued interest receivable	9,254			6			2,651			6,597		9,254
LIABILITIES
Deposits	$	(2,167,815	)	$	(1,802,844	)	$	(362,756	)	$	0	$	(2,165,600	)
FHLB and other borrowings	(257,359		)	0			(257,361		)	0		(257,361		)
Subordinated debentures	(70,620		)	0			(63,575		)	0		(63,575		)
Interest rate swaps	(310		)	0			(310		)	0		(310		)
Accrued interest payable	(554		)	0			(554		)	0		(554		)