Note 17 - Disclosure of Financial Instruments Not Reported at Fair Value

3 Months Ended

Mar. 31, 2019

(

)

Disclosure of Financial Instruments

Not

Reported at Fair Value

US GAAP requires disclosure of the fair value of financial assets and liabilities, including those financial assets and financial liabilities that are

not

measured and reported at fair value on a recurring basis or nonrecurring basis. Carrying amounts, estimated fair values, and placement in the fair value hierarchy of Bancorp’s financial instruments are as follows:

(In thousands)	Carrying
March 31, 2019	amount		Fair value		Level 1		Level 2		Level 3

Assets
Cash and cash equivalents	$	111,340	$	111,340	$	111,340	$	-	$	-
Mortgage loans held for sale		2,981		3,089		-		3,089		-
Federal Home Loan Bank stock		9,779		9,779				9,779
Loans, net		2,499,245		2,486,416		-		-		2,486,416
Accrued interest receivable		8,710		8,710		8,710		-		-

Liabilities
Non-interest bearing deposits		698,783		698,783		698,783		-		-
Transaction deposits		1,697,313		1,697,313		-		1,697,313		-
Time deposits		356,444		355,947		-		355,947		-
Securities sold under agreement to repurchase		34,633		34,633		-		34,633		-
Federal funds purchased		12,218		12,218		-		12,218		-
FHLB advances		47,853		47,295		-		47,295		-
Accrued interest payable		709		709		709		-		-

(In thousands)	Carrying
December 31, 2018	amount		Fair value		Level 1		Level 2		Level 3

Financial assets
Cash and cash equivalents	$	198,939	$	198,939	$	198,939	$	-	$	-
Mortgage loans held for sale		1,675		1,743		-		1,743		-
Federal Home Loan Bank stock		10,370		10,370				10,370
Loans, net		2,522,637		2,508,587		-		-		2,508,587
Accrued interest receivable		8,360		8,360		8,360		-		-

Financial liabilities
Non-interest bearing deposits		711,023		711,023		711,023		-		-
Transaction deposits		1,736,618		-		-		1,736,618		-
Time deposits		346,715		-		-		345,273		-
Securities sold under agreement to repurchase		36,094		36,094		-		36,094		-
Federal funds purchased		10,247		10,247		-		10,247		-
FHLB advances		48,177		47,227		-		47,227		-
Accrued interest payable		762		762		762		-		-

Limitations

Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. Because

market exists for a significant portion of Bancorp’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases,

may

not

be realizable in a current sale of the instrument. Changes in assumptions could significantly affect estimates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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