Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated.

			Fair Value Measurements At December 31, 2016, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	3,241	$	-	$	3,241	$	-
US Treasury Notes		134,428		134,428		-		-
US Govt SBA		36,314				36,314
Mortgage Backed Securities		273,270		-		273,270		-
Other		1,010		200		310		500
Total Assets Measured at Fair Value On a Recurring Basis	$	448,263	$	134,628	$	313,135	$	500

			Fair Value Measurements At December 31, 2015, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	33,251	$	-	$	33,251	$	-
US Treasury Notes		72,884		72,884		-		-
Mortgage Backed Securities		262,493		-		262,493		-
Other		509		199		310		-
Total Assets Measured at Fair Value On a Recurring Basis	$	369,137	$	73,083	$	296,054	$	-

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following tables present information about the Company’s impaired loans & leases and other real estate, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans & leases are carried at fair value. Impaired loans & leases are only included in the following tables when their fair value is based upon an appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve.

			Fair Value Measurements At December 31, 2016, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Impaired Loans:
Residential 1st Mortgage	$	480	$	-	$	-	$	480
Home Equity Lines and Loans		83		-		-		83
Agricultural		497		-		-		497
Commercial		833		-		-		833
Total Impaired Loans		1,893		-		-		1,893
Other Real Estate:
Home Equity Lines and Loans		785		-		-		785
Real Estate Construction		2,960		-		-		2,960
Total Other Real Estate		3,745		-		-		3,745
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	5,638	$	-	$	-	$	5,638

			Fair Value Measurements At December 31, 2015, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Impaired Loans:
Residential 1st Mortgage	$	329	$	-	$	-	$	329
Home Equity Lines and Loans		125		-		-		125
Agricultural		298		-		-		298
Commercial		752		-		-		752
Consumer		5		-		-		5
Total Impaired Loans		1,509		-		-		1,509
Other Real Estate:
Real Estate Construction		2,441		-		-		2,441
Total Other Real Estate		2,441		-		-		2,441
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	3,950	$	-	$	-	$	3,950

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on a Non-Recurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2016:

(in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans:
Residential 1st Mortgages	$	480	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		2% -4%, 3	%
Home Equity Lines and Loans	$	83	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 2	%
Agricultural	$	286	Income Approach	Capitalization Rate		16% - 16%, 16	%
Agricultural	$	211	Collateral Approach	Collateral Value		10% -10%, 10	%
Commercial	$	833	Income Approach	Capitalization Rate		16% - 16%, 16	%

Other Real Estate:
Home Equity Lines and Loans	$	785	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		10% - 10%, 10	%
Real Estate Construction	$	2,960	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		10% - 10%, 10	%