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Note 13 - Fair Value Measurements and Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value, by Balance Sheet Grouping [Table Text Block]

			September 3 0 , 2019
	Quoted Prices		Other
	in Active		Observable		Unobservable			Total
	Markets		Inputs		Inputs			Fair
(In Thousands)	(Level 1)		(Level 2)		(Level 3)			Value
Recurring fair value measurements
AVAILABLE-FOR-SALE DEBT SECURITIES:
Obligations of U.S. Government agencies	$	0	$	17,096	$	0		$	17,096
Obligations of states and political subdivisions:
Tax-exempt		0		73,281		0			73,281
Taxable		0		33,086		0			33,086
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		0		62,245		0			62,245
Residential collateralized mortgage obligations		0		127,815		0			127,815
Commercial mortgage-backed securities		0		49,944		0			49,944
Total available-for-sale debt securities		0		363,467		0			363,467
Marketable equity security		983		0		0			983
Servicing rights		0		0		1,228			1,228
Total recurring fair value measurements	$	983	$	363,467	$	1,228		$	365,678

Nonrecurring fair value measurements
Impaired loans with a valuation allowance	$	0	$	0	$	3,027		$	3,027
Valuation allowance		0		0		(986	)		(986	)
Impaired loans, net		0		0		2,041			2,041
Foreclosed assets held for sale		0		0		2,762			2,762
Total nonrecurring fair value measurements	$	0	$	0	$	4,803		$	4,803

			December 31, 2018
	Quoted Prices		Other
	in Active		Observable		Unobservable			Total
	Markets		Inputs		Inputs			Fair
(In Thousands)	(Level 1)		(Level 2)		(Level 3)			Value
Recurring fair value measurements
AVAILABLE-FOR-SALE DEBT SECURITIES:
Obligations of U.S. Government agencies	$	0	$	12,500	$	0		$	15,500
Obligations of states and political subdivisions:
Tax-exempt		0		83,952		0			83,952
Taxable		0		27,699		0			27,699
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		0		53,445		0			53,445
Residential collateralized mortgage obligations		0		145,912		0			145,912
Commercial mortgage-backed securities		0		39,765		0			39,765
Total available-for-sale debt securities		0		363,273		0			363,273
Marketable equity security		950		0		0			950
Servicing rights		0		0		1,404			1,404
Total recurring fair value measurements	$	950	$	363,273	$	1,404		$	365,627

Nonrecurring fair value measurements
Impaired loans with a valuation allowance	$	0	$	0	$	4,851		$	4,851
Valuation allowance		0		0		(1,605	)		(1,605	)
Impaired loans, net		0		0		3,246			3,246
Foreclosed assets held for sale		0		0		1,703			1,703
Total nonrecurring fair value measurements	$	0	$	0	$	4,949		$	4,949

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

(In Thousands)	Three Months Ended Sept. 30, 2019								Nine Months Ended Sept. 30, 2019
	Restricted Equity Security		Servicing Rights			Total			Restricted Equity Security		Servicing Rights			Total
Balance, beginning of period	$	0	$	1,322		$	1,322		$	0	$	1,404		$	1,404
Issuances of servicing rights		0		70			70			0		136			136
Unrealized gains (losses) included in earnings		0		(164	)		(164	)		0		(312	)		(312	)
Balance, end of period	$	0	$	1,228		$	1,228		$	0	$	1,228		$	1,228

(In Thousands)	Three Months Ended Sept. 30, 2018									Nine Months Ended Sept. 30, 2018
	Restricted Equity Security			Servicing Rights			Total			Restricted Equity Security		Servicing Rights			Total
Balance, beginning of period	$	866		$	1,370		$	2,236		$	0	$	1,299		$	1,299
Issuances of servicing rights		0			43			43			0		140			140
Unrealized gains (losses) included in earnings		(866	)		(32	)		(898	)		0		(58	)		(58	)
Balance, end of period	$	0		$	1,381		$	1,381		$	0	$	1,381		$	1,381

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

(In Thousands)	Fair Value	September 3 0 , 2019				December 31, 2018
	Hierarchy	Carrying		Fair		Carrying		Fair
	Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	46,883	$	46,883	$	32,827	$	32,827
Certificates of deposit	Level 2		4,560		4,714		4,660		4,634
Restricted equity securities (included in Other Assets)	Level 2		7,886		7,886		5,712		5,712
Loans, net	Level 3		1,130,143		1,150,023		818,254		825,809
Accrued interest receivable	Level 2		5,094		5,094		3,968		3,968

Financial liabilities:
Deposits with no stated maturity	Level 2		912,888		912,888		804,207		804,207
Time deposits	Level 2		381,994		384,594		229,565		229,751
Short-term borrowings	Level 2		21,281		21,159		12,853		12,617
Long-term borrowings	Level 2		58,200		58,143		35,915		35,902
Accrued interest payable	Level 2		430		430		142		142

Fair Value, Nonrecurring [Member]

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

(In Thousands, Except									Weighted-
Percentages)									Average
	Balance at		Valuation Allowance at		Fair Value at		Valuation	Unobservable	Discount at
Asset	9/3 0 /19		9/3 0 /19		9/3 0 /19		Technique	Inputs	9/3 0 /19

Impaired loans:
Residential mortgage loans - first and junior liens	$	500	$	127	$	373	Sales comparison	Discount to appraised value		29	%
Commercial:
Commercial loans secured by real estate		1,261		678		583	Sales comparison	Discount to appraised value		47	%
Commercial and industrial		73		73		0	Sales comparison	Discount to appraised value		100	%
Commercial and industrial		713		60		653	Liquidation of accounts receivable	Discount to borrower's financial statement value		14	%
Loans secured by farmland		480		48		432	Sales comparison	Discount to appraised value		46	%
Total impaired loans	$	3,027	$	986	$	2,041
Foreclosed assets held for sale - real estate:
Residential (1-4 family)	$	329	$	0	$	329	Sales comparison	Discount to appraised value		39	%
Land		100		0		100	Sales comparison	Discount to appraised value		61	%
Commercial real estate		2,333		0		2,333	Sales comparison	Discount to appraised value		39	%
Total foreclosed assets held for sale	$	2,762	$	0	$	2,762

(In Thousands, Except									Weighted-
Percentages)									Average
	Balance at		Valuation Allowance at		Fair Value at		Valuation	Unobservable	Discount at
Asset	12/31/18		12/31/18		12/31/18		Technique	Inputs	12/31/18

Impaired loans:
Residential mortgage loans - first and junior liens	$	509	$	116	$	393	Sales comparison	Discount to appraised value		26	%
Commercial:
Commercial loans secured by real estate		2,515		781		1,734	Sales comparison	Discount to appraised value		16	%
Commercial and industrial		75		75		0	Sales comparison	Discount to appraised value		100	%
Commercial and industrial		1,265		584		681	Sales comparison	Discount to borrower's financial statement value		36	%
Loans secured by farmland		487		49		438	Sales comparison	Discount to appraised value		56	%
Total impaired loans	$	4,851	$	1,605	$	3,246
Foreclosed assets held for sale - real estate:
Residential (1-4 family)	$	64	$	0	$	64	Sales comparison	Discount to appraised value		68	%
Land		110		0		110	Sales comparison	Discount to appraised value		61	%
Commercial real estate		1,529		0		1,529	Sales comparison	Discount to appraised value		20	%
Total foreclosed assets held for sale	$	1,703	$	0	$	1,703

Fair Value, Recurring [Member]

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

	Fair Value at
	9/3 0 /19		Valuation	Unobservable	Method or Value As of
Asset	(In Thousands)		Technique	Input(s)	9/3 0 /19
Servicing rights	$	1,228	Discounted cash flow	Discount rate		12.50	%	Rate used through modeling period
				Loan prepayment speeds		198.00	%	Weighted-average PSA
				Servicing fees		0.25	%	of loan balances
						4.00	%	of payments are late
						5.00	%	late fees assessed
					$	1.94		Miscellaneous fees per account per month
				Servicing costs	$	6.00		Monthly servicing cost per account
					$	24.00		Additional monthly servicing cost per loan on loans more than 30 days delinquent
						1.50	%	of loans more than 30 days delinquent
						3.00	%	annual increase in servicing costs

	Fair Value at
	12/31/18		Valuation	Unobservable	Method or Value As of
Asset	(In Thousands)		Technique	Input(s)	12/31/18
Servicing rights	$	1,404	Discounted cash flow	Discount rate		12.50	%	Rate used through modeling period
				Loan prepayment speeds		114.00	%	Weighted-average PSA
				Servicing fees		0.25	%	of loan balances
						4.00	%	of payments are late
						5.00	%	late fees assessed
					$	1.94		Miscellaneous fees per account per month
				Servicing costs	$	6.00		Monthly servicing cost per account
					$	24.00		Additional monthly servicing cost per loan on loans more than 30 days delinquent
						1.50	%	of loans more than 30 days delinquent
						3.00	%	annual increase in servicing costs

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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