Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019, 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	$	1,998	$	—	$	1,998	$	—
U.S. Government Sponsored Enterprises		3,942		—		3,942		—
SBA Backed Securities		72,588		—		72,588		—
U.S. Government Agency and Sponsored Mortgage-Backed Securities		194,205		—		194,205		—
Privately Issued Residential Mortgage-Backed Securities		649		—		649		—
Obligations Issued by States and Political Subdivisions		68,107		—		4,775		63,332
Other Debt Securities		3,600		—		3,600		—
Total	$	345,089	$	—	$	281,757	$	63,332
Other Real Estate Owned	$	2,225	$	—	$	—	$	2,225
Financial Instruments Measured at Fair Value on a Recurring Basis Equity Securities	$	1,649	$	328	$	1,321	$	—
Financial Instruments Measured at Fair Value on a Non-recurring Basis Impaired Loans	$	195	$	—	$	—	$	195

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	$	1,992	$	—	$	1,992	$	—
U.S. Government Sponsored Enterprises		3,915		—		3,915		—
SBA Backed Securities		70,194		—		70,194		—
U.S. Government Agency and Sponsored Mortgage-Backed Securities		162,890		—		162,890		—
Privately Issued Residential Mortgage-Backed Securities		672		—		672		—
Obligations Issued by States and Political Subdivisions		93,503		—		4,775		88,728
Other Debt Securities		3,593				3,593
Total	$	336,759	$	—	$	248,031	$	88,728
Other Real Estate Owned	$	2,225	$	—	$	—	$	2,225
Financial Instruments Measured at Fair Value on a Recurring Basis Equity Securities	$	1,596	$	293	$	1,303	$	—
Financial Instruments Measured at Fair Value on a Non-recurring Basis Impaired Loans	$	251	$	—	$	—	$	251

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)	$	63,332	Discounted cash flow	Discount rate		2.1%-3.8% (3)
Other Real Estate Owned	$	2,225	Appraisal of collateral (1)	Appraisal adjustments (2)		30% discount
Impaired Loans	$	195	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.

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)	$	88,728		Discounted cash flow		Discount rate		2.1%-4.1% (3)
Other Real Estate Owned	$	2,225		Appraisal of collateral (1)		Appraisal adjustments (2)		30% discount
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.

Changes in Level 3 Securities

The changes in Level 3 securities for the three month period ended March 31, 2019 are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Total
	(in thousands)
Balance at December 31, 2018	$	—	$	88,728		$	88,728
Purchases		—		970			970
Maturities and calls		—		(26,352	)		(26,352	)
Amortization		—		(14	)		(14	)
Changes in fair value		—		—			—
Balance at March 31, 2019	$	—	$	63,332		$	63,332

	Auction Rate Securities			Obligations Issued by States & Political Subdivisions			Total
	(in thousands)
Balance at December 31, 2017	$	4,459		$	78,141		$	82,600
Purchases		—			20,416			20,416
Maturities and calls		—			(22,068	)		(22,068	)
Transfer to Level 2		(4,459	)		—			(4,459	)
Amortization		—			(24	)		(24	)
Changes in fair value		—			—			—
Balance at March 31, 2018	$	—		$	76,465		$	76,465