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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 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)
 
SBA Backed Securities
  
$
 
58,664
 
  
$
 
—  
 
  
$
58,664
 
  
$
—  
 
U.S. Government Agency and Sponsored Mortgage-Backed Securities
  
 
170,282
 
  
 
—  
 
  
 
170,282
 
  
 
—  
 
Privately Issued Residential Mortgage-
 
Backed Securities
  
 
579
 
  
 
—  
 
  
 
579
 
  
 
—  
 
Obligations Issued by States and Political Subdivisions
  
 
28,576
 
  
 
—  
 
  
 
4,775
 
  
 
23,801
 
Other Debt Securities
  
 
3,638
 
  
 
—  
 
  
 
3,638
 
  
 
—  
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total
  
$
261,739
 
  
$
—  
 
  
$
237,938
 
  
$
23,801
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity Securities
  
$
1,672
 
  
$
324
 
  
$
1,348
 
  
$
—  
 
 
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
 
     
Impaired Loans
  
$
173
 
  
$
—  
 
  
$
—  
 
  
$
173
 
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 
   
 
 
   
 
 
   
 
 
   
 
 
 
Equity Securities
  $1,596   $293   $1,303   $—   
 
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
 
     
Other Real Estate Owned
  $2,225   $—     $—     $2,225 
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)
  
$
23,801
 
  
Discounted cash flow
  
Discount rate
  
1.7%-3.1% (3)
Impaired Loans
  
$
173
 
  
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 nine month period ended September 30, 2019 are shown in the table below:
 
   
Obligations
Issued by States
& Political
Subdivisions
 
   
(in thousands)
 
Balance at December 31, 2018
  
$
88,728
 
Purchases
  
 
13,290
 
Maturities and calls
  
 
(78,196
) 
Amortization
  
 
(21
)
   
 
 
 
Balance at September 30, 2019
  
$
23,801
 
   
 
 
 
   Auction Rate
Securities		   Obligations
Issued by States
& Political
Subdivisions		   Total 
   (in thousands) 
Balance at December 31, 2017
  $4,459   $78,141   $82,600 
Purchases
   —      105,837    105,837 
Maturities and calls
   —      (72,640)    (72,640) 
Transfer to Level 2
   (4,459)    —      (4,459) 
Amortization
   —      (104)    (104) 
Changes in fair value
   —      —      —   
   
 
 
   
 
 
   
 
 
 
Balance at September 30, 2018
  $—     $111,234   $111,234