Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present information about the Company’s assets 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 June 30, 2019, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	3,014	$	-	$	3,014	$	-
US Treasury Notes		174,908		174,908		-		-
US Government Agency SBA		13,198		-		13,198		-
Mortgage Backed Securities		292,161		-		292,161		-
Other		4,812		203		310		4,299
Total Assets Measured at Fair Value On a Recurring Basis	$	488,093	$	175,111	$	308,683	$	4,299

			Fair Value Measurements At December 31, 2018, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	3,039	$	-	$	3,039	$	-
US Treasury Notes		164,514		164,514		-		-
US Government Agency SBA		15,447		-		15,447		-
Mortgage Backed Securities		307,045		-		307,045		-
Other		5,351		202		310		4,839
Total Assets Measured at Fair Value On a Recurring Basis	$	495,396	$	164,716	$	325,841	$	4,839

			Fair Value Measurements At June 30, 2018, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	3,071	$	-	$	3,071	$	-
US Treasury Notes		139,275		139,275		-		-
US Government Agency SBA		18,403		-		18,403		-
Mortgage Backed Securities		286,414		-		286,414		-
Other		3,011		201		310		2,500
Total Assets Measured at Fair Value On a Recurring Basis	$	450,174	$	139,476	$	308,198	$	2,500

Reconciliation of Level 3 Fair Value Category Measured at Fair Value on a Recurring Basis

The following table presents a reconciliation for the three and six months ended June 30, 2019 of the level 3 fair value category measured at fair value on a recurring basis:

							Net Realized / Unrealized Gains (Losses)

(in thousands)	Balance at Beginning of Period		Purchases /Additions		Sales / Reductions		Realized		Unrealized		Balance at End of Period
Three months ended June 30, 2019
Available-for-sale debt securities:	$	1,397	$	219	$	453	$	-	$	-	$	1,163
Equity securities:	$	3,246	$	80	$	190	$	-	$	-	$	3,136
Total	$	4,643	$	299	$	643	$	-	$	-	$	4,299

Six months ended June 30, 2019
Available-for-sale debt securities:	$	1,593	$	698	$	1,128	$	-	$	-	$	1,163
Equity securities:	$	3,246	$	80	$	190	$	-	$	-	$	3,136
Total	$	4,839	$	778	$	1,318	$	-	$	-	$	4,299

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

The following tables present information about the Company’s other real estate and impaired loans or leases, 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 or leases are carried at fair value. Impaired loans or leases are only included in the following tables when their fair value is based upon a current 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 June 30, 2019, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans
Commercial Real Estate	$	2,656	$	-	$	-	$	2,656
Residential 1st Mortgage		1,530		-		-		1,530
Home Equity Lines and Loans		67		-		-		67
Agricultural		98		-		-		98
Commercial		1,390		-		-		1,390
Total Impaired Loans		5,741		-		-		5,741
Other Real Estate
Real Estate Construction		873		-		-		873
Total Other Real Estate		873		-		-		873
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	6,614	$	-	$	-	$	6,614

			Fair Value Measurements At December 31, 2018, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans:
Commercial Real Estate	$	2,658	$	-	$	-	$	2,658
Residential 1st Mortgage		1,550		-		-		1,550
Home Equity Lines and Loans		70		-		-		70
Commercial		1,454		-		-		1,454
Total Impaired Loans		5,732		-		-		5,732
Other Real Estate:
Real Estate Construction		873		-		-		873
Total Other Real Estate		873		-		-		873
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	6,605	$	-	$	-	$	6,605

			Fair Value Measurements At June 30, 2018, Using
(in thousands)	Fair Value Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans
Commercial Real Estate	$	2,594	$	-	$	-	$	2,594
Residential 1st Mortgage		1,485		-		-		1,485
Home Equity Lines and Loans		72		-		-		72
Commercial		1,490		-		-		1,490
Total Impaired Loans		5,641		-		-		5,641
Other Real Estate
Real Estate Construction		873		-		-		873
Total Other Real Estate		873		-		-		873
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	6,514	$	-	$	-	$	6,514

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

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at the dates indicated.

June 30, 2019 (in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans
Commercial Real Estate	$	2,656	Income Approach	Capitalization Rate		3.25%, 3.25	%
Residential 1st Mortgage	$	1,530	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 4%, 2.83	%
Home Equity Lines and Loans	$	67	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 1.40	%
Agricultural	$	98	Income Approach	Capitalization Rate		5.10%, 5.10	%
Commercial	$	1,390	Income Approach	Capitalization Rate		3.25%, 3.25	%

Other Real Estate
Real Estate Construction	$	873	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		10%, 10	%

December 31, 2018 (in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans:
Commercial Real Estate	$	2,658	Income Approach	Capitalization Rate		3.25%, 3.25	%
Residential 1st Mortgages	$	1,550	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 4%, 3	%
Home Equity Lines and Loans	$	70	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 2	%
Commercial	$	1,454	Income Approach	Capitalization Rate		2.95% - 8.70%, 3.40	%

Other Real Estate:
Real Estate Construction	$	873	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		10%, 10	%

June 30, 2018 (in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans
Commercial Real Estate	$	2,594	Income Approach	Capitalization Rate		3.25%, 3.25	%
Residential 1st Mortgage	$	1,485	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% -4%, 3	%
Home Equity Lines and Loans	$	72	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 1	%
Commercial	$	1,490	Income Approach	Capitalization Rate		2.95% - 8.70%, 3.40	%

Other Real Estate
Real Estate Construction	$	873	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		10%, 10	%