Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020, 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	$	15,399	$	15,399	$	-	$	-
US Govt SBA		9,954		-		9,954		-
Mortgage Backed Securities		501,376		-		501,376		-
Other		5,517		5,207		310		-
Total Assets Measured at Fair Value On a Recurring Basis	$	532,246	$	20,606	$	511,640	$	-

			Fair Value Measurements At December 31, 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	$	54,995	$	54,995	$	-	$	-
US Govt SBA		10,798		-		10,798		-
Mortgage Backed Securities		441,078		-		441,078		-
Other		515		205		310		-
Total Assets Measured at Fair Value On a Recurring Basis	$	507,386	$	55,200	$	452,186	$	-

			Fair Value Measurements At March 31, 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:
Government Agency & Government-Sponsored Entities	$	3,027	$	-	$	3,027	$	-
US Treasury Notes		164,674		164,674		-		-
US Govt SBA		14,412		-		14,412		-
Mortgage Backed Securities		304,020		-		304,020		-
Other		5,156		203		310		4,643
Total Assets Measured at Fair Value On a Recurring Basis	$	491,289	$	164,877	$	321,769	$	4,643

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

The following table presents a reconciliation 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 March 31, 2019
Available-for-sale debt securities:		$	1,593		$	479		$	675		$	-		$	-		$	1,397
Equity securities:		$	3,246		$	-		$	-		$	-		$	-		$	3,246
Total		$	4,839		$	479		$	675		$	-		$	-		$	4,643

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 March 31, 2020, 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
Residential 1st Mortgage	$	1,470	$	-	$	-	$	1,470
Home Equity Lines and Loans		64		-		-		64
Consumer		135						135
Total Impaired Loans		1,669		-		-		1,669
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	$	2,542	$	-	$	-	$	2,542

			Fair Value Measurements At December 31, 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	$	2,588	$	-	$	-	$	2,588
Residential 1st Mortgage		1,403		-		-		1,403
Home Equity Lines and Loans		142		-		-		142
Agricultural		88		-		-		88
Commercial		1,391		-		-		1,391
Consumer		139		-		-		139
Total Impaired Loans		5,751		-		-		5,751
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	$	6,624	$	-	$	-	$	6,624

			Fair Value Measurements At March 31, 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	$	2,660	$	-	$	-	$	2,660
Residential 1st Mortgage		1,540		-		-		1,540
Home Equity Lines and Loans		69		-		-		69
Agricultural		102		-		-		102
Commercial		1,418		-		-		1,418
Total Impaired Loans		5,789		-		-		5,789
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	$	6,662	$	-	$	-	$	6,662

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.

March 31, 2020 (in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans
Residential 1st Mortgage	$	1,470	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 4%, 2.84	%
Home Equity Lines and Loans	$	64	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 1.07	%
Consumer	$	135	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		4%, 4	%

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

December 31, 2019 (in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans:
Commercial Real Estate	$	2,588	Income Approach	Capitalization Rate		3.3%, 3.3	%
Residential 1st Mortgages	$	1,403	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		0.8% - 6.4%, 3	%
Home Equity Lines and Loans	$	142	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 1.3	%
Agricultural	$	88	Income Approach	Capitalization Rate		4.3%, 4.3	%
Commercial	$	1,391	Income Approach	Capitalization Rate		3.3%, 3.3	%
Consumer	$	139	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		40.6%, 40.6	%

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

March 31, 2019 (in thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range, Weighted Avg.
Impaired Loans
Commercial Real Estate	$	2,660	Income Approach	Capitalization Rate		3.25%, 3.25	%
Residential 1st Mortgage	$	1,540	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% -4%, 2.85	%
Home Equity Lines and Loans	$	69	Sales Comparison Approach	Adjustment for Difference Between Comparable Sales		1% - 2%, 1.50	%
Agricultural	$	102	Income Approach	Capitalization Rate		5.10%, 5.10	%
Commercial	$	1,418	Income Approach	Capitalization Rate		3.25% - 8.70%, 3.40	%

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