Fair Value (Tables)

6 Months Ended

Jun. 30, 2020

Quantitative information about assets measured utilizing Level 3 fair value measurement

The following tables list the quantitative fair value information about impaired loans as of:



	June 30, 2020
Valuation Technique	Fair Value	Unobservable Input	Actual Range	Weighted Average
		Discount applied to collateral:
		Real Estate	20% - 30%	22%
		Equipment	20% - 40%	30%
Discounted value	$18,073	Cash crop inventory	40%	40%
		Livestock	30%	30%
		Other inventory	50%	50%
		Accounts receivable	25% - 50%	25%



	December 31, 2019
Valuation Technique	Fair Value	Unobservable Input	Actual Range	Weighted Average
		Discount applied to collateral:
		Real Estate	20% - 30%	22%
		Equipment	20% - 40%	32%
Discounted value	$19,135	Cash crop inventory	40%	40%
		Livestock	30%	30%
		Other inventory	50%	50%
		Accounts receivable	25% - 50%	28%

Carrying amount and estimated fair value of financial instruments not recorded at fair value

The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis were as follows as of:



	June 30, 2020
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	109,384	$	109,384	$	109,384	$	—	$	—
Mortgage loans AFS	5,451		5,523		—		5,523		—
Gross loans	1,284,385		1,284,003		—		—		1,284,003
Less allowance for loan and lease losses	8,877		8,877		—		—		8,877
Net loans	1,275,508		1,275,126		—		—		1,275,126
Accrued interest receivable	7,715		7,715		7,715		—		—
Equity securities without readily determinable fair values ⁽¹⁾	21,660		N/A		—		—		—
OMSR	1,914		1,914		—		1,914		—
LIABILITIES
Deposits without stated maturities	1,062,055		1,062,055		1,062,055		—		—
Deposits with stated maturities	378,623		387,322		—		387,322		—
Borrowed funds	236,268		245,093		—		245,093		—
Accrued interest payable	667		667		667		—		—



	December 31, 2019
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	60,572	$	60,572	$	60,572	$	—	$	—
Mortgage loans AFS	904		925		—		925		—
Gross loans	1,186,570		1,170,370		—		—		1,170,370
Less allowance for loan and lease losses	7,939		7,939		—		—		7,939
Net loans	1,178,631		1,162,431		—		—		1,162,431
Accrued interest receivable	6,501		6,501		6,501		—		—
Equity securities without readily determinable fair values ⁽¹⁾	21,629		N/A		—		—		—
OMSR	2,264		2,264		—		2,264		—
LIABILITIES
Deposits without stated maturities	906,232		906,232		906,232		—		—
Deposits with stated maturities	407,619		409,600		—		409,600		—
Borrowed funds	275,999		278,761		—		278,761		—
Accrued interest payable	860		860		860		—		—


⁽¹⁾	Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. When an impairment or write-down related to these securities is recorded, such amount would be classified as a nonrecurring Level 3 fair value adjustment.

Assets and liabilities measured at fair value

The table below presents the recorded amount of assets and liabilities measured at fair value on:



	June 30, 2020											December 31, 2019
	Total		Level 1			Level 2			Level 3			Total		Level 1			Level 2			Level 3
Recurring items
AFS securities
States and political subdivisions	$	146,785	$	—		$	146,785		$	—		$	169,752	$	—		$	169,752		$	—
Auction rate money market preferred	2,979		—			2,979			—			3,119		—			3,119			—
Mortgage-backed securities	119,029		—			119,029			—			140,204		—			140,204			—
Collateralized mortgage obligations	111,621		—			111,621			—			116,764		—			116,764			—
Total AFS securities	380,414		—			380,414			—			429,839		—			429,839			—
Derivative instruments	98		—			98			—			67		—			67			—
Nonrecurring items
Impaired loans (net of the ALLL)	18,073		—			—			18,073			19,135		—			—			19,135
OMSR	1,914		—			1,914			—			2,264		—			2,264			—
Total	$	400,499	$	—		$	382,426		$	18,073		$	451,305	$	—		$	432,170		$	19,135
Percent of assets and liabilities measured at fair value			—		%	95.49		%	4.51		%			—		%	95.76		%	4.24		%

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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