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Fair Value (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2019 and 2018:



				Fair Value Measurements at December 31, 2019 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	$	127,094		$	0	$	127,094		$	0
States and political subdivisions	104,363			0		104,363			0
Residential and multi-family mortgage	276,636			0		273,841			2,795
Corporate notes and bonds	8,082			0		8,082			0
Pooled SBA	25,174			0		25,174			0
Other	964			964		0			0
Total Securities Available For Sale	$	542,313		$	964	$	538,554		$	2,795
Interest rate swaps	$	1,877		$	0	$	1,877		$	0
Trading Securities:
Corporate equity securities	$	7,946		$	7,946	$	0		$	0
Mutual funds	807			807		0			0
Certificates of deposit	350			350		0			0
Corporate notes and bonds	655			655		0			0
U.S. Government sponsored entities	51			0		51			0
Total Trading Securities	$	9,809		$	9,758	$	51		$	0
Liabilities
Interest rate swaps	$	(2,362	)	$	0	$	(2,362	)	$	0



				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

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, 2019:



	Residential and Multi-Family Mortgage
Balance, January 1, 2019	$	0
Purchases	2,796
Total gains or (losses):
Included in other comprehensive income (loss)	(1		)
Balance, December 31, 2019	$	2,795

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, 2019 and 2018:



			Fair Value Measurements at December 31, 2019 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	$	2,910	0	0	$	2,910
Commercial mortgages	$	1,147	0	0	$	1,147



			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	$	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 December 31, 2019:



	Fair value	Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial, industrial, and agricultural	$2,910	Valuation of third party appraisal on underlying collateral	Loss severity rates	0%-100% (54%)
Impaired loans – commercial mortgages	$1,147	Valuation of third party appraisal on underlying collateral	Loss severity rates	25%-100% (52%)

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 December 31, 2019:



	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	$	192,974		$	192,974		$	0		$	0	$	192,974
Securities available for sale	542,313			964			538,554			2,795		542,313
Trading securities	9,809			9,758			51			0		9,809
Loans held for sale	930			0			933			0		933
Net loans	2,784,562			0			0			2,765,133		2,765,133
FHLB and other equity interests	27,868			n/a			n/a			n/a		n/a
Interest rate swaps	1,877			0			1,877			0		1,877
Accrued interest receivable	11,486			6			3,238			8,242		11,486
LIABILITIES
Deposits	$	(3,102,327	)	$	(2,674,511	)	$	(432,287	)	$	0	$	(3,106,798	)
FHLB and other borrowings	(227,907		)	0			(230,679		)	0		(230,679		)
Subordinated debentures	(70,620		)	0			(64,084		)	0		(64,084		)
Interest rate swaps	(2,362		)	0			(2,362		)	0		(2,362		)
Accrued interest payable	(1,597		)	0			(1,597		)	0		(1,597		)

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	(1,349		)	0			(1,349		)	0		(1,349		)