Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2019, 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:
US Treasury Notes	$	129,989	$	129,989	$	-	$	-
US Government Agency SBA		11,744		-		11,744		-
Mortgage Backed Securities		347,557		-		347,557		-
Other		514		204		310		-
SBA Loan Fund Investment measured at NAV		3,126		-		-		-
Total Assets Measured at Fair Value On a Recurring Basis	$	492,930	$	130,193	$	359,611	$	-

			Fair Value Measurements At December 31, 2018, 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	$	3,039	$	-	$	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 September 30, 2018, 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	$	3,052	$	-	$	3,052	$	-
US Treasury Notes		164,208		164,208		-		-
US Government Agency SBA		16,973		-		16,973		-
Mortgage Backed Securities		271,067		-		271,067		-
Other		3,011		201		310		2,500
Total Assets Measured at Fair Value On a Recurring Basis	$	458,311	$	164,409	$	291,402	$	2,500

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 September 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	$	2,587	$	-	$	-	$	2,587
Residential 1st Mortgage		1,518		-		-		1,518
Home Equity Lines and Loans		66		-		-		66
Agricultural		97		-		-		97
Commercial		1,390		-		-		1,390
Total Impaired Loans		5,658		-		-		5,658
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	$	6,531	$	-	$	-	$	6,531

			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 September 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	$	2,596	$	-	$	-	$	2,596
Residential 1st Mortgage		1,476		-		-		1,476
Home Equity Lines and Loans		71		-		-		71
Commercial		1,478		-		-		1,478
Total Impaired Loans		5,621		-		-		5,621
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	$	6,494	$	-	$	-	$	6,494

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on a Nonrecurring 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 the dates indicated:

September 30, 2019 (in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans
Commercial Real Estate	$	2,587	Income Approach	Capitalization Rate		3.25%, 3.25	%
Residential 1st Mortgage	$	1,518	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1.00% - 4.50%, 2.81	%
Home Equity Lines and Loans	$	66	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1.00% - 2.00%, 1.38	%
Agricultural	$	97	Income Approach	Capitalization Rate		3.25%, 3.25	%
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	%

September 30, 2018 (in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans
Commercial Real Estate	$	2,596	Income Approach	Capitalization Rate		3.25%, 3.25	%
Residential 1st Mortgage	$	1,476	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% -4%, 3	%
Home Equity Lines and Loans	$	71	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 1	%
Commercial	$	1,478	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	%