Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis

The results of the fair value hierarchy as of September 30, 2016, are as follows:

Financial Instruments Measured at Fair Value on a Recurring Basis:

	Securities AFS Fair Value Measurements Using
	Carrying Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury	$	2,000	$	—	$	2,000	$	—
U.S. Government Sponsored Enterprises		15,009		—		15,009		—
SBA Backed Securities		58,345		—		58,345		—
U.S. Government Agency and Sponsored Mortgage Backed Securities		264,454		—		264,454		—
Privately Issued Residential Mortgage Backed Securities		1,177		—		1,177		—
Obligations Issued by States and Political Subdivisions		179,911		—		—		179,911
Other Debt Securities		4,961		—		4,961		—
Equity Securities		275		275		—		—
Total	$	526,132	$	275	$	345,946	$	179,911
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	251	$	—	$	—	$	251

The results of the fair value hierarchy as of December 31, 2015, are as follows:

Financial Instruments Measured at Fair Value on a Recurring Basis:

	Securities AFS Fair Value Measurements Using
	Carrying Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury	$	1,989	$	—	$	1,989	$	—
U.S. Government Sponsored Enterprises		—		—		—		—
SBA Backed Securities		5,989		—		5,989		—
U.S. Government Agency and Sponsored Mortgage Backed Securities		233,526		—		233,526		—
Privately Issued Residential Mortgage Backed Securities		1,434		—		1,434		—
Obligations Issued by States and Political Subdivisions		156,960		—		—		156,960
Other Debt Securities		4,473		—		4,473		—
Equity Securities		252		215		—		37
Total	$	404,623	$	215	$	247,411	$	156,997
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	1,056	$	—	$	—	$	1,056

Assets Measured at Fair Value

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS (4)	$	179,911	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	251	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-30% discount

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

(3) Weighted averages.

(4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. There was one auction rate security whose fair value is based on the evaluation of the underlying issuer, prevailing interest rates and market liquidity.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input     Value or Range
Securities AFS (4)	$	156,997	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	1,056	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-30% discount

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

(3) Weighted averages

(4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. There was one auction rate security whose fair value is based on the evaluation of the underlying issuer, prevailing interest rates and market liquidity.

Changes in Level 3 Securities

The changes in Level 3 securities for the nine month period ended September 30, 2016 are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities			Total
	(in thousands)
Balance at December 31, 2015	$	3,820	$	153,140		$	37		$	156,997
Purchases		—		181,752			—			181,752
Maturities and calls		—		(159,116	)		(37	)		(159,153	)
Amortization		—		(163	)		—			(163	)
Changes in fair value		478		—			—			478
Balance at September 30, 2016	$	4,298	$	175,613		$	—		$	179,911

The changes in Level 3 securities for the nine month period ended September 30, 2015, are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities			Total
	(in thousands)
Balance at December 31, 2014	$	3,820	$	92,964		$	102		$	96,886
Purchases		—		166,339			—			166,339
Maturities and calls		—		(115,989	)		(65	)		(116,054	)
Amortization		—		(35	)		—			(35	)
Changes in fair value		—		—			—			—
Balance at September 30, 2015	$	3,820	$	143,279		$	37		$	147,136