Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

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:



	March 31, 2018
Valuation Technique	Fair Value	Unobservable Input	Actual Range
		Discount applied to collateral:
		Real Estate	20% - 30%
		Equipment	25% - 35%
		Cash crop inventory	30% - 40%
Discounted value	$18,934	Livestock	30%
		Other inventory	50% - 75%
		Accounts receivable	25% - 50%
		Liquor license	75%
		Furniture, fixtures & equipment	35% - 45%



	December 31, 2017
Valuation Technique	Fair Value	Unobservable Input	Actual Range
		Discount applied to collateral:
		Real Estate	20% - 30%
		Equipment	20% - 35%
		Cash crop inventory	30% - 40%
Discounted value	$15,956	Livestock	30%
		Other inventory	50% - 75%
		Accounts receivable	50%
		Liquor license	75%
		Furniture, fixtures & equipment	35% - 45%

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:



	March 31, 2018
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	16,712	$	16,712	$	16,712	$	—	$	—
Mortgage loans AFS	359		447		—		447		—
Gross loans	1,093,002		1,075,018		—		—		1,075,018
Less allowance for loan and lease losses	8,200		8,200		—		—		8,200
Net loans	1,084,802		1,066,818		—		—		1,066,818
Accrued interest receivable	7,134		7,134		7,134		—		—
Equity securities without readily determinable fair values (1)	23,391		N/A		—		—		—
OMSR	2,421		2,421		—		2,421		—
LIABILITIES
Deposits without stated maturities	825,808		825,808		825,808		—		—
Deposits with stated maturities	472,060		460,342		—		460,342		—
Borrowed funds	303,113		298,139		—		298,139		—
Accrued interest payable	676		676		676		—		—



	December 31, 2017
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
ASSETS
Cash and cash equivalents	$	30,848	$	30,848	$	30,848	$	—	$	—
Mortgage loans AFS	1,560		1,587		—		1,587		—
Gross loans	1,091,519		1,056,906		—		—		1,056,906
Less allowance for loan and lease losses	7,700		7,700		—		—		7,700
Net loans	1,083,819		1,049,206		—		—		1,049,206
Accrued interest receivable	7,063		7,063		7,063		—		—
Equity securities without readily determinable fair values (1)	23,454		N/A		—		—		—
OMSR	2,409		2,409		—		2,409		—
LIABILITIES
Deposits without stated maturities	811,992		811,992		811,992		—		—
Deposits with stated maturities	453,266		443,892		—		443,892		—
Borrowed funds	344,878		342,089		—		342,089		—
Accrued interest payable	680		680		680		—		—


⁽¹⁾	Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. If we were to record an impairment adjustment related to these securities, 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:



	March 31, 2018											December 31, 2017
	Total		Level 1			Level 2			Level 3			Total		Level 1			Level 2			Level 3
Recurring items
AFS securities
Government-sponsored enterprises	$	202	$	—		$	202		$	—		$	216	$	—		$	216		$	—
States and political subdivisions	211,633		—			211,633			—			208,474		—			208,474			—
Auction rate money market preferred	3,012		—			3,012			—			3,049		—			3,049			—
Mortgage-backed securities	206,861		—			206,861			—			208,797		—			208,797			—
Collateralized mortgage obligations	126,054		—			126,054			—			128,194		—			128,194			—
Total AFS securities	547,762		—			547,762			—			548,730		—			548,730			—
Equity securities	3,575		3,575			—			—			3,577		3,577			—			—
Derivative instruments	413		—			413			—			291		—			291			—
Nonrecurring items
Impaired loans (net of the ALLL)	18,934		—			—			18,934			15,956		—			—			15,956
Total	$	570,684	$	3,575		$	548,175		$	18,934		$	568,554	$	3,577		$	549,021		$	15,956
Percent of assets and liabilities measured at fair value			0.63		%	96.06		%	3.31		%			0.63		%	96.56		%	2.81		%

- 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.

+ References + Details