Fair Value Measurements (Tables)
|
12 Months Ended |
Dec. 31, 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 December 31,
2017, are as follows:
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Fair Value Measurements
Using |
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| |
|
Carrying
Value |
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|
Quoted Prices
in Active Markets
for Identical Assets
(Level 1) |
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|
Significant
Observable
Inputs
(Level 2) |
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|
Significant
Other
Unobservable
Inputs
(Level 3) |
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| (dollars in thousands) |
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Financial Instruments Measured at Fair Value on a Recurring
Basis — Securities AFS
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
1,984 |
|
|
$ |
— |
|
|
$ |
1,984 |
|
|
$ |
— |
|
|
U.S. Government Agency Sponsored Enterprises
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
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SBA Backed Securities
|
|
|
80,950 |
|
|
|
— |
|
|
|
80,950 |
|
|
|
— |
|
|
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed
Securities
|
|
|
225,775 |
|
|
|
— |
|
|
|
225,775 |
|
|
|
— |
|
|
Privately Issued Residential Mortgage-Backed Securities
|
|
|
892 |
|
|
|
— |
|
|
|
892 |
|
|
|
— |
|
|
Obligations Issued by States and Political Subdivisions
|
|
|
82,600 |
|
|
|
— |
|
|
|
— |
|
|
|
82,600 |
|
|
Other Debt Securities
|
|
|
4,971 |
|
|
|
— |
|
|
|
4,971 |
|
|
|
— |
|
|
Equity Securities
|
|
|
303 |
|
|
|
303 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total
|
|
$ |
397,475 |
|
|
$ |
303 |
|
|
$ |
314,572 |
|
|
$ |
82,600 |
|
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|
|
|
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Financial Instruments Measured at Fair Value on a Non-recurring Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Impaired Loans
|
|
$ |
246 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
246 |
|
The results of the fair value hierarchy as of December 31,
2016, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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) |
|
| (dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Instruments Measured at Fair Value on a Recurring Basis
— Securities AFS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
2,000 |
|
|
$ |
— |
|
|
$ |
2,000 |
|
|
$ |
— |
|
|
U.S. Government Agency Sponsored Enterprises
|
|
|
24,952 |
|
|
|
— |
|
|
|
24,952 |
|
|
|
— |
|
|
BA Backed Securities
|
|
|
57,767 |
|
|
|
— |
|
|
|
57,767 |
|
|
|
— |
|
|
U.S. Government Agency and Sponsored Enterprises 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 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total
|
|
$ |
499,297 |
|
|
$ |
344 |
|
|
$ |
334,077 |
|
|
$ |
164,876 |
|
|
|
|
|
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|
|
|
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|
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) at December 31, 2017.
Management continues to monitor the assumptions used to value the
assets listed below.
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|
Asset
|
|
Fair Value |
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|
Valuation Technique
|
|
Unobservable Input
|
|
Unobservable Input
Value or Range
|
|
Securities AFS(1)
|
|
$ |
82,600 |
|
|
Discounted cash flow |
|
Discount rate |
|
1.0%-3.5%(2) |
|
Impaired Loans
|
|
|
246 |
|
|
Appraisal of collateral(3) |
|
Appraisal adjustments(4) |
|
0%-30% discount |
| (1) |
Municipal securities generally have
maturities of one year or less and, therefore, the amortized cost
equates to the fair value. |
| (3) |
Fair value is generally determined
through independent appraisals of the underlying collateral, which
generally include various Level 3 inputs which are not
identifiable. |
| (4) |
Appraisals may be adjusted by
management for qualitative factors such as economic conditions and
estimated expenses. |
The changes in Level 3 securities for the year ended
December 31, 2017 are as shown in the table below:
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) at December 31, 2016.
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(1)
|
|
$ |
164,876 |
|
|
Discounted cash flow |
|
Discount rate |
|
0%-1%(2) |
|
Impaired Loans
|
|
|
260 |
|
|
Appraisal of collateral(3) |
|
Appraisal adjustments (4) |
|
0%-30% discount |
| (1) |
Municipal securities generally have
maturities of one year or less and, therefore, the amortized cost
equates to the fair value. |
| (3) |
Fair value is generally determined
through independent appraisals of the underlying collateral, which
generally include various Level 3 inputs which are not
identifiable. |
| (4) |
Appraisals may be adjusted by
management for qualitative factors such as economic conditions and
estimated expenses. |
|
| Changes in Level 3 Securities |
The changes in Level 3 securities for the year ended
December 31, 2017 are as shown in the table below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Auction Rate
Securities |
|
|
Obligations
Issued by States
and Political
Subdivisions |
|
|
Equity
Securities |
|
|
Total |
|
| (dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2016
|
|
$ |
4,298 |
|
|
$ |
160,578 |
|
|
$ |
— |
|
|
$ |
164,876 |
|
|
Purchases
|
|
|
— |
|
|
|
99,136 |
|
|
|
— |
|
|
|
99,136 |
|
|
Maturities/redemptions
|
|
|
— |
|
|
|
(181,394 |
) |
|
|
— |
|
|
|
(181,394 |
) |
|
Amortization
|
|
|
— |
|
|
|
(179 |
) |
|
|
— |
|
|
|
(179 |
) |
|
Change in fair value
|
|
|
161 |
|
|
|
— |
|
|
|
— |
|
|
|
161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2017
|
|
$ |
4,459 |
|
|
$ |
78,141 |
|
|
$ |
— |
|
|
$ |
82,600 |
|
The changes in Level 3 securities for the year ended
December 31, 2016 are as shown in the table below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Auction Rate
Securities |
|
|
Obligations
Issued by States
and Political
Subdivisions |
|
|
Equity
Securities |
|
|
Total |
|
| (dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2015
|
|
$ |
3,820 |
|
|
$ |
153,140 |
|
|
$ |
37 |
|
|
$ |
156,997 |
|
|
Purchases
|
|
|
— |
|
|
|
216,646 |
|
|
|
— |
|
|
|
216,646 |
|
|
Maturities/redemptions
|
|
|
— |
|
|
|
(208,990 |
) |
|
|
(37 |
) |
|
|
(209,027 |
) |
|
Amortization
|
|
|
— |
|
|
|
(218 |
) |
|
|
— |
|
|
|
(218 |
) |
|
Change in fair value
|
|
|
478 |
|
|
|
— |
|
|
|
— |
|
|
|
478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2016
|
|
$ |
4,298 |
|
|
$ |
160,578 |
|
|
$ |
— |
|
|
$ |
164,876 |
|
|