Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018:



				Fair Value Measurements at June 30, 2019 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	$	140,727		$	0	$	140,727		$	0
States and political subdivisions	119,454			0		119,454			0
Residential and multi-family mortgage	233,064			0		233,064			0
Corporate notes and bonds	11,889			0		11,889			0
Pooled SBA	27,876			0		27,876			0
Other	960			960		0			0
Total Securities Available For Sale	$	533,970		$	960	$	533,010		$	0
Interest Rate swaps	$	1,802		$	0	$	1,802		$	0
Trading Securities:
Corporate equity securities	$	7,155		$	7,155	$	0		$	0
Mutual funds	916			916		0			0
Certificates of deposit	179			179		0			0
Corporate notes and bonds	603			603		0			0
U.S. Government sponsored entities	51			0		51			0
Total Trading Securities	$	8,904		$	8,853	$	51		$	0
Liabilities:
Interest rate swaps	$	(2,328	)	$	0	$	(2,328	)	$	0

				Fair Value Measurements at December 31, 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	$	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

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 June 30, 2019 and December 31, 2018:



			Fair Value Measurements at June 30, 2019 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, industrial, and agricultural	$	631	0	0	$	631
Commercial mortgages	$	933	0	0	$	933

			Fair Value Measurements at December 31, 2018 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, industrial, and agricultural	$	2,055	0	0	$	2,055
Commercial mortgages	$	679	0	0	$	679

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 June 30, 2019:



	Fair value	Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial, industrial, and agricultural	$631	Valuation of third party appraisal on underlying collateral	Loss severity rates	48%-61% (58%)
Impaired loans – commercial mortgages	$933	Valuation of third party appraisal on underlying collateral	Loss severity rates	0-100% (66%)

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	$2,055	Valuation of third party appraisal on underlying collateral	Loss severity rates	20%-60% (34%)
Impaired loans – commercial mortgages	$679	Valuation of third party appraisal on underlying collateral	Loss severity rates	15%-39% (33%)

Carrying Amount and Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at June 30, 2019:



	Carrying			Fair Value Measurement Using:								Total
	Amount			Level 1			Level 2			Level 3		Fair Value
ASSETS
Cash and cash equivalents	$	37,930		$	37,930		$	0		$	0	$	37,930
Securities available for sale	533,970			960			533,010			0		533,970
Trading securities	8,904			8,853			51			0		8,904
Loans held for sale	2,032			0			2,037			0		2,037
Net loans	2,600,921			0			0			2,578,210		2,578,210
FHLB and other restricted interests	24,501			n/a			n/a			n/a		n/a
Interest rate swaps	1,802			0			1,802			0		1,802
Accrued interest receivable	12,020			6			3,310			8,704		12,020
LIABILITIES
Deposits	$	(2,734,762	)	$	(2,379,635	)	$	(355,750	)	$	0	$	(2,735,385	)
FHLB and other borrowings	(257,784		)	0			(260,361		)	0		(260,361		)
Subordinated debentures	(70,620		)	0			(64,791		)	0		(64,791		)
Interest rate swaps	(2,328		)	0			(2,328		)	0		(2,328		)
Accrued interest payable	(990		)	0			(990		)	0		(990		)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2018:



	Carrying			Fair Value Measurement Using:								Total
	Amount			Level 1			Level 2			Level 3		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 restricted 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		)