Fair Value (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016:


				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 equity securities		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


				Fair Value Measurements at December 31, 2016 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	$	140,351		$	0	$	140,351		$	0
States and political subdivisions		157,037			0		157,037			0
Residential and multi-family mortgage		134,976			0		134,976			0
Corporate notes and bonds		17,414			0		17,414			0
Pooled trust preferred		2,049			0		0			2,049
Pooled SBA		43,037			0		43,037			0
Other equity securities		971			971		0			0

Total Securities Available For Sale	$	495,835		$	971	$	492,815		$	2,049

Interest Rate swaps:	$	211		$	0	$	211		$	0

Trading Securities:
Corporate equity securities	$	3,312		$	3,312	$	0		$	0
Mutual funds		1,037			1,037		0			0
Certificates of deposit		202			202		0			0
Corporate notes and bonds		254			254		0			0
U.S. Government sponsored entities		53			0		53			0

Total Trading Securities	$	4,858		$	4,805	$	53		$	0

Liabilities
Interest rate swaps	$	(670	)	$	0	$	(670	)	$	0

Securities Available for Sale Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value 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


	Pooled trust preferred
Balance, January 1, 2016	$	3,413
Total gains or (losses):
Included in other comprehensive income (loss)		(442	)
Included in realized gains on available-for-sale securities		0
Sale of available-for-sale securities		(922	)

Balance, December 31, 2016	$	2,049

Quantitative Information about Level 3 Fair Value Measurements

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2016:


	Fair value	Valuation Technique	Unobservable Inputs	Input Utilized
Pooled trust preferred	$2,049	Discounted cash flow	Collateral default rate Yield	0.5% in 2016 and thereafter 10%
			Prepayment speed	2.0% constant prepayment rate in 2016 and thereafter

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, 2017 and 2016:


			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

			Fair Value Measurements at December 31, 2016 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	$	2,067		0		0	$	2,067

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, 2017:


	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	11	Discounted cash flow method	Discount used in discounted cash flow method	10% (10%)

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, 2016:


	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	2,067	Sales comparison approach and discounted cash flow method	Adjustment for differences between the comparable sales and discount used in discounted cash flows	10% – 14% (13%)

Carrying Amount and Fair Value of Financial Instruments

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	)
Deposits held for sale		0			0			0			0			0
Interest rate swaps		(310	)		0			(310	)		0			(310	)
Accrued interest payable		(554	)		0			(554	)		(0	)		(554	)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2016:


	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	$	29,183		$	29,183		$	0		$	0	$	29,183
Securities available for sale		495,835			971			492,815			2,049		495,835
Trading securities		4,858			4,805			53			0		4,858
Loans held for sale		7,528			0			7,553			0		7,553
Net loans		1,857,206			0			0			1,817,341		1,817,341
FHLB and other equity interests		19,186			n/a			n/a			n/a		n/a
Interest rate swaps		211			0			211			0		211
Accrued interest receivable		8,264			6			3,014			5,244		8,264

LIABILITIES
Deposits	$	(2,017,522	)	$	(1,785,649	)	$	(219,765	)	$	0	$	(2,005,414	)
FHLB and other borrowings		(237,004	)		0			(226,769	)		0		(226,769	)
Subordinated debentures		(70,620	)		0			(61,831	)		0		(61,831	)
Deposits held for sale		(6,456	)		0			(6,417	)		0		(6,417	)
Interest rate swaps		(670	)		0			(670	)		0		(670	)
Accrued interest payable		(510	)		0			(510	)		0		(510	)