Fair Value (Tables)

3 Months Ended

Mar. 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 March 31, 2018 and December 31, 2017:


				Fair Value Measurements at March 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:
Securities Available For Sale:
U.S. Government sponsored entities	$	111,921		$	0	$	111,921		$	0
States and political subdivisions		133,466			0		133,466			0
Residential and multi-family mortgage		120,630			0		120,630			0
Corporate notes and bonds		17,194			0		17,194			0
Pooled SBA		34,145			0		34,145			0
Other		943			943		0			0

Total Securities Available For Sale	$	418,299		$	943	$	417,356		$	0

Interest Rate swaps	$	146		$	0	$	146		$	0

Trading Securities:
Corporate equity securities	$	5,172		$	5,172	$	0		$	0
Mutual funds		1,612			1,612		0			0
Certificates of deposit		170			170		0			0
Corporate notes and bonds		250			250		0			0
U.S. Government sponsored entities		52			0		52			0

Total Trading Securities	$	7,256		$	7,204	$	52		$	0

Liabilities,
Interest rate swaps	$	(229	)	$	0	$	(229	)	$	0


				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		$	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 three months ended March 31, 2018 and 2017:


	2018		2017
Balance, January 1	$	0	$	2,049
Total gains:
Included in other comprehensive income (unrealized)		0		134
Sale of available-for-sale securities		0		(2,183	)

Balance, March 31	$	0	$	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 March 31, 2018 and December 31, 2017:

Fair Value Measurements at March 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 mortgages

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

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 March 31, 2018:


	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Impaired loans – commercial mortgages	$	60	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, 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%)

Carrying Amount and Fair Value of Financial Instruments

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


	Carrying			Fair Value Measurement Using:								Total
	Amount			Level 1			Level 2			Level 3		Fair Value
ASSETS
Cash and cash equivalents	$	28,604		$	28,604		$	0		$	0	$	28,604
Securities available for sale		418,299			943			417,356			0		418,299
Trading securities		7,256			7,204			52			0		7,256
Loans held for sale		1,460			0			1,460			0		1,460
Net loans		2,255,368			0			0			2,226,877		2,226,877
FHLB and other restricted interests		21,377			n/a			n/a			n/a		n/a
Other equity interests		5,187											5,187
Interest rate swaps		146			0			146			0		146
Accrued interest receivable		9,853			7			3,117			6,729		9,853
LIABILITIES
Deposits	$	(2,210,055	)	$	(1,833,235	)	$	(378,985	)	$	0	$	(2,212,220	)
FHLB and other borrowings		(356,398	)		0			(351,547	)		0		(351,547	)
Subordinated debentures		(70,620	)		0			(69,767	)		0		(69,767	)
Interest rate swaps		(229	)		0			(229	)		0		(229	)
Accrued interest payable		(638	)		0			(638	)		0		(638	)

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		$	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 restricted interests		17,035			n/a			n/a			n/a			n/a
Other equity interests		4,482												4,482
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	)