Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented.



(in thousands)			Fair Value Measurements Using
Measured at Fair Value on a Recurring Basis:	Total		Level 1		Level 2		Level 3
March 31, 2020
U.S. government agency securities	$	64,252	$	—	$	64,252	$	—
State, county and municipals	157,336		—		157,336		—
Mortgage-backed securities	209,953		—		209,953		—
Corporate debt securities	80,319		—		77,189		3,130
Securities AFS	$	511,860	$	—	$	508,730	$	3,130
Other investments (equity securities)	$	3,978	$	3,978	$	—	$	—
December 31, 2019
U.S. government agency securities	$	16,460	$	—	$	16,460	$	—
State, county and municipals	156,393		—		156,393		—
Mortgage-backed securities	195,018		—		195,018		—
Corporate debt securities	81,431		—		78,301		3,130
Securities AFS	$	449,302	$	—	$	446,172	$	3,130
Other investments (equity securities)	$	3,375	$	3,375	$	—	$	—

Schedule of changes in the Level 3 securities AFS measured at fair value on a recurring basis

The following table presents the changes in the Level 3 securities AFS measured at fair value on a recurring basis.



(in thousands)	Three Months Ended		Year Ended
Level 3 Fair Value Measurements:	March 31, 2020		December 31, 2019
Balance at beginning of year	$	3,130	$	8,490
Acquired balance	—		300
Paydowns/Sales/Settlements	—		(5,660		)
Balance at end of period	$	3,130	$	3,130

Schedule of assets measured at fair value on a nonrecurring basis

The following table presents the Company’s assets measured at fair value on a nonrecurring basis, aggregated by level in the fair value hierarchy within which those measurements fall.



(in thousands)			Fair Value Measurements Using
Measured at Fair Value on a Nonrecurring Basis:	Total		Level 1		Level 2		Level 3
March 31, 2020
Collateral dependent loans	$	10,062	$	—	$	—	$	10,062
Other real estate owned (“OREO”)	1,000		—		—		1,000
MSR asset	8,807		—		—		8,807
December 31, 2019
Impaired loans	$	16,150	$	—	$	—	$	16,150
OREO	1,000		—		—		1,000
MSR asset	8,420		—		—		8,420

Schedule of estimated fair values of financial instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are shown below.



March 31, 2020
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	241,960	$	241,960	$	241,960	$	—	$	—
Certificates of deposit in other banks	18,804		19,905		—		19,905		—
Securities AFS	511,860		511,860		—		508,730		3,130
Other investments, including equity securities	27,176		27,176		3,978		19,260		3,938
Loans held for sale	3,929		4,006		—		4,006		—
Loans, net	2,581,222		2,659,556		—		—		2,659,556
BOLI	78,665		78,665		78,665		—		—
MSR asset	6,019		8,807		—		—		8,807
Financial liabilities:
Deposits	$	3,023,466	$	3,029,747	$	—	$	—	$	3,029,747
Short-term borrowings	75,000		75,000		—		75,000		—
Long-term borrowings	82,741		82,958		—		40,877		42,081



December 31, 2019
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	182,059	$	182,059	$	182,059	$	—	$	—
Certificates of deposit in other banks	19,305		19,310		—		19,310		—
Securities AFS	449,302		449,302		—		446,172		3,130
Other investments, including equity securities	24,072		24,072		3,375		16,759		3,938
Loans held for sale	2,706		2,753		—		2,753		—
Loans, net	2,559,779		2,593,110		—		—		2,593,110
BOLI	78,140		78,140		78,140		—		—
MSR asset	5,919		8,420		—		—		8,420
Financial liabilities:
Deposits	$	2,954,453	$	2,956,229	$	—	$	—	$	2,956,229
Long-term borrowings	67,629		66,816		—		25,075		41,741