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Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2019
Fair Value Disclosures [Abstract] |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2019 and December 31, 2018 are as follows:
|  |  |  |  | September 30, 2019
|  |  |  |  | Fair Value Measurements at Reporting Date Using
|  | Total Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
Federal agency obligations |  | $ | 24,535 |  | $ | - |  | $ | 24,535 |  | $ | -
Residential mortgage pass-through securities |  |  | 215,805 |  |  | - |  |  | 215,805 |  |  | -
Commercial mortgage pass-through securities |  |  | 5,090 |  |  | - |  |  | 5,090 |  |  | -
Obligations of U.S. states and political subdivision |  |  | 143,656 |  |  | - |  |  | 134,475 |  |  | 9,181
Corporate bonds and notes |  |  | 28,250 |  |  | - |  |  | 28,250 |  |  | -
Asset-backed securities |  |  | 6,094 |  |  | - |  |  | 6,094 |  |  | -
Certificates of deposit |  |  | 150 |  |  | - |  |  | 150 |  |  | -
Other securities |  |  | 2,269 |  |  | 2,269 |  |  | - |  |  | -
Total available-for-sale |  | $ | 425,849 |  | $ | 2,269 |  | $ | 414,399 |  | $ | 9,181
Equity securities |  |  | 11,231 |  |  | 11,231 |  |  | - |  |  | -
Total assets |  | $ | 437,080 |  | $ | 13,500 |  | $ | 414,399 |  | $ | 9,181
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  |  | 380 |  |  | - |  |  | 380 |  |  | -
Total liabilities |  | $ | 380 |  | $ | - |  | $ | 380 |  | $ | -
31 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued)
|  |  |  |  | December 31, 2018
|  |  |  |  | Fair Value Measurements at Reporting Date Using
|  | Total Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
Federal agency obligations |  | $ | 44,955 |  | $ | - |  | $ | 44,955 |  | $ | -
Residential mortgage pass-through securities |  |  | 185,204 |  |  | - |  |  | 185,204 |  |  | -
Commercial mortgage pass-through securities |  |  | 3,874 |  |  | - |  |  | 3,874 |  |  | -
Obligations of U.S. states and political subdivision |  |  | 139,185 |  |  | - |  |  | 129,808 |  |  | 9,377
Corporate bonds and notes |  |  | 25,813 |  |  | - |  |  | 25,813 |  |  | -
Asset-backed securities |  |  | 9,691 |  |  | - |  |  | 9,691 |  |  | -
Certificates of deposit |  |  | 322 |  |  | - |  |  | 322 |  |  | -
Other securities |  |  | 2,990 |  |  | 2,990 |  |  | - |  |  | -
Total available-for-sale |  | $ | 412,034 |  | $ | 2,990 |  | $ | 399,667 |  | $ | 9,377
Equity securities |  |  | 11,460 |  |  | 11,460 |  |  | - |  |  | -
Derivatives |  |  | 1,159 |  |  | - |  |  | 1,159 |  |  | -
Total assets |  | $ | 424,653 |  | $ | 14,450 |  | $ | 400,826 |  | $ | 9,377
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | For assets measured at fair value on a nonrecurring basis, the fair value measurements at September 30, 2019 and December 31, 2018 are as follows:
|  |  |  |  | Fair Value Measurements at Reporting Date Using
Assets measured at fair value on a nonrecurring basis: |  | Carrying Value at September 30, 2019 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Impaired loans: |  | (dollars in thousands)
Commercial real estate |  | $ | 365 |  | $ | - |  | $ | - |  | $ | 365
Commercial construction |  |  | 5,128 |  |  | - |  |  | - |  |  | 5,128
Residential real estate |  |  | 240 |  |  | - |  |  | - |  |  | 240
|  |  |  |  | Fair Value Measurements at Reporting Date Using
Assets measured at fair value on a nonrecurring basis: |  | Carrying Value at December 31, 2018 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Impaired loans: |  | (dollars in thousands)
Commercial real estate |  | $ | 1,481 |  | $ | - |  | $ | - |  | $ | 1,481
Residential real estate |  |  | 231 |  |  | - |  |  | - |  |  | 231
Fair Value, Recurring basis [Table Text Block] | The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2019 and for the year ended December 31, 2018:
| Municipal Securities
| (dollars in thousands)
Beginning balance, January 1, 2019 | $ | 9,377 |
Principal paydowns |  | (196 | )
Ending balance, September 30, 2019 | $ | 9,181 |
| Municipal Securities
| (dollars in thousands)
Beginning balance, January 1, 2018 | $ | 9,632 |
Principal paydowns |  | (255 | )
Ending balance, December 31, 2018 | $ | 9,377 |
Significant unobservable inputs used in fair value measurements [Table Text Block] | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2019 and December 31, 2018. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. September 30, 2019
|  | Fair Value |  | Valuation Techniques |  | Unobservable Input |  | Range
Securities available-for-sale: |  |  |  |  | (dollars in thousands) |  |  |  |  |
Municipal securities |  | $ | 9,181 |  | Discounted cash flows |  | Discount rate |  | 2.9 | %
December 31, 2018
|  | Fair Value |  | Valuation Techniques |  | Unobservable Input |  | Range
Securities available-for-sale: |  |  |  |  | (dollars in thousands) |  |  |  |  |
Municipal securities |  | $ | 9,377 |  | Discounted cash flows |  | Discount rate |  | 2.9 | %
Fair Value Measurements, Nonrecurring [Table Text Block] | Nonrecurring basis: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.
September 30, 2019 |  | Fair Value |  | Valuation Techniques |  | Unobservable Input |  | Range
Impaired loans: |  | (dollars in thousands) |  |
Commercial real estate |  | $ | 365 |  | Sales comparison approach |  | Adjustment for differences between the comparable sales |  | 0% to 20% [10%]
Commercial construction |  |  | 5,128 |  | Sales comparison approach |  | Adjustment for differences between the comparable sales |  | -10% to 13% [2%]
Residential real estate |  |  | 240 |  | Sales comparison approach |  | Adjustment for differences between the comparable sales |  | 0% to 7% [2%]
December 31, 2018 |  | Fair Value |  | Valuation Techniques |  | Unobservable Input |  | Range
Impaired loans: |  | (dollars in thousands) |  |
Commercial real estate |  | $ | 1,481 |  | Sales comparison approach |  | Adjustment for differences between the comparable sales |  | 6% to 9% [8%]
Residential real estate |  |  | 231 |  | Sales comparison approach |  | Adjustment for differences between the comparable sales |  | 0% to 10% [5%]
Fair Value, by Balance Sheet Grouping [Table Text Block] | As of September 30, 2019 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement, in which fair value represents exit price. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2019 and December 31, 2018:
|  |  |  |  |  |  | Fair Value Measurements
| Carrying Amount |  | Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
| (dollars in thousands)
September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 194,009 |  | $ | 194,009 |  | $ | 194,009 |  | $ | - |  | $ | -
Securities available-for-sale |  | 425,849 |  |  | 425,849 |  |  | 2,269 |  |  | 414,399 |  |  | 9,181
Investment in restricted stocks |  | 27,946 |  |  | n/a |  |  | n/a |  |  | n/a |  |  | n/a
Equity securities |  | 11,231 |  |  | 11,231 |  |  | 11,231 |  |  | - |  |  | -
Net loans |  | 5,071,700 |  |  | 5,087,076 |  |  | - |  |  | - |  |  | 5,087,076
Loans held-for-sale |  | 33,245 |  |  | 33,245 |  |  | - |  |  | 1,598 |  |  | 31,647
Accrued interest receivable |  | 21,024 |  |  | 21,024 |  |  | - |  |  | 2,262 |  |  | 18,762
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | 828,190 |  |  | 828,190 |  |  | 828,190 |  |  | - |  |  | -
Interest-bearing deposits |  | 3,923,044 |  |  | 3,935,294 |  |  | 2,349,308 |  |  | 1,585,986 |  |  | -
Borrowings |  | 512,456 |  |  | 514,331 |  |  | - |  |  | 514,331 |  |  | -
Subordinated debentures |  | 128,802 |  |  | 137,790 |  |  | - |  |  | 137,790 |  |  | -
Derivatives |  | 380 |  |  | 380 |  |  | - |  |  | 380 |  |  | -
Accrued interest payable |  | 4,509 |  |  | 4,509 |  |  | - |  |  | 4,509 |  |  | -
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 172,366 |  | $ | 172,366 |  | $ | 172,366 |  | $ | - |  | $ | -
Securities available-for-sale |  | 412,034 |  |  | 412,034 |  |  | 2,990 |  |  | 399,667 |  |  | 9,377
Investment in restricted stocks |  | 31,136 |  |  | n/a |  |  | n/a |  |  | n/a |  |  | n/a
Equity securities |  | 11,460 |  |  | 11,460 |  |  | 11,460 |  |  | - |  |  | -
Net loans |  | 4,506,138 |  |  | 4,402,878 |  |  | - |  |  | - |  |  | 4,402,878
Derivatives |  | 1,159 |  |  | 1,159 |  |  | - |  |  | 1,159 |  |  | -
Accrued interest receivable |  | 18,214 |  |  | 18,214 |  |  | - |  |  | 2,064 |  |  | 16,150
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | 768,584 |  |  | 768,584 |  |  | 768,584 |  |  | - |  |  | -
Interest-bearing deposits |  | 3,323,508 |  |  | 3,320,640 |  |  | 1,957,503 |  |  | 1,363,137 |  |  | -
Borrowings |  | 600,001 |  |  | 598,598 |  |  | - |  |  | 598,598 |  |  | -
Subordinated debentures |  | 128,556 |  |  | 132,426 |  |  | - |  |  | 132,426 |  |  | -
Accrued interest payable |  | 6,764 |  |  | 6,764 |  |  | - |  |  | 6,764 |  |  | -

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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