Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

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 June 30, 2017, 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 Identitcal Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S . Treasury	$	1,995	$	—	$	1,995	$	—
U.S . Government Sponsored Enterprises		10,000		—		10,000		—
SBA Backed Securities		71,189		—		71,189		—
U.S . Government Agency and Sponsored Mortgage-Backed Securities		223,782		—		223,782		—
Privately Issued Residential Mortgage-Backed Securities		1,015		—		1,015		—
Obligations Issued by States and Political Subdivisions		98,049		—		—		98,049
Other Debt Securities		4,992		—		4,992		—
Equity Securities		318		318		—		—
Total	$	411,340	$	318	$	312,973	$	98,049
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	230	$	—	$	—	$	230

The results of the fair value hierarchy as of December 31, 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 Identitcal 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		24,952		—		24,952		—
SBA Backed Securities		57,767		—		57,767		—
U.S. Government Agency and Sponsored Mortgage-Backed Securities		243,325		—		243,325		—
Privately Issued Residential Mortgage-Backed Securities		1,109		—		1,109		—
Obligations Issued by States and Political Subdivisions		164,876		—		—		164,876
Other Debt Securities		4,924		—		4,924		—
Equity Securities		344		344		—		—
Total	$	499,297	$	344	$	334,077	$	164,876
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	260	$	—	$	—	$	260

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)	$	98,049	Discounted cash flow	Discount rate	0% -1% (3)
Impaired Loans	$	230	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)	$	164,876	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	260	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 three month period ended June 30, 2017 are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities		Total
	(in thousands)
Balance at December 31, 2016	$	4,298	$	160,578		$	—	$	164,876
Purchases		—		47,430			—		47,430
Maturities and calls		—		(114,144	)		—		(114,144	)
Amortization		—		(113	)		—		(113	)
Balance at June 30, 2017	$	4,298	$	93,751		$	—	$	98,049

The changes in Level 3 securities for the six month period ended June 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		—		155,742			—			155,742
Maturities and calls		—		(100,245	)		(37	)		(100,282	)
Amortization		—		(97	)		—			(97	)
Changes in fair value		478		—			—			478
Balance at June 30, 2016	$	4,298	$	208,540		$	—		$	212,838