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100360 - Disclosure - Fair Value (Tables)
(http://www.farmersbankgroup.com/20161231/taxonomy/role/DisclosureFairValueTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000709337 (http://www.sec.gov/CIK)
Fair Value Disclosures [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Fair Value Disclosures [Abstract]
 
Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are summarized below:

 

 

 

Fair Value Measurements at December 31, 2016 Using:

 

 

 

Carrying Value

 

 

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S Treasury and U.S. government sponsored

   entities

 

$

5,921

 

 

$

0

 

 

$

5,921

 

 

$

0

 

State and political subdivisions

 

 

155,303

 

 

 

0

 

 

 

155,303

 

 

 

0

 

Corporate bonds

 

 

1,339

 

 

 

0

 

 

 

1,339

 

 

 

0

 

Mortgage-backed securities-residential

 

 

169,682

 

 

 

0

 

 

 

169,670

 

 

 

12

 

Collateralized mortgage obligations

 

 

20,693

 

 

 

0

 

 

 

20,693

 

 

 

0

 

Small Business Administration

 

 

16,706

 

 

 

0

 

 

 

16,706

 

 

 

0

 

Equity securities

 

 

351

 

 

 

351

 

 

 

0

 

 

 

0

 

Total investment securities

 

$

369,995

 

 

$

351

 

 

$

369,632

 

 

$

12

 

Loan yield maintenance provisions

 

$

685

 

 

$

0

 

 

$

685

 

 

$

0

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

685

 

 

$

0

 

 

$

685

 

 

$

0

 

 

 

 

Fair Value Measurements at December 31, 2015 Using:

 

 

 

Carrying Value

 

 

Quoted Prices in

Active Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S Treasury and U.S. government sponsored

   entities

 

$

11,106

 

 

$

0

 

 

$

11,106

 

 

$

0

 

State and political subdivisions

 

 

138,723

 

 

 

0

 

 

 

138,723

 

 

 

0

 

Corporate bonds

 

 

1,134

 

 

 

0

 

 

 

1,134

 

 

 

0

 

Mortgage-backed securities-residential

 

 

196,587

 

 

 

0

 

 

 

196,572

 

 

 

15

 

Collateralized mortgage obligations

 

 

27,165

 

 

 

0

 

 

 

27,165

 

 

 

0

 

Small Business Administration

 

 

19,299

 

 

 

0

 

 

 

19,299

 

 

 

0

 

Equity securities

 

 

298

 

 

 

298

 

 

 

0

 

 

 

0

 

Total investment securities

 

$

394,312

 

 

$

298

 

 

$

393,999

 

 

$

15

 

Loan yield maintenance provisions

 

$

789

 

 

$

0

 

 

$

789

 

 

$

0

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

789

 

 

$

0

 

 

$

789

 

 

$

0

 

 

  
Reconciliation for All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31:  

 

 

 

Investment Securities Available-for-sale (Level 3)

 

 

 

2016

 

 

2015

 

 

2014

 

Beginning Balance

 

$

15

 

 

$

10

 

 

$

10

 

Total unrealized gains or losses:

 

 

 

 

 

 

 

 

 

 

 

 

Included in other comprehensive income

 

 

0

 

 

 

0

 

 

 

0

 

Repayments

 

 

(3

)

 

 

(1

)

 

 

0

 

Acquired and/or purchased

 

 

0

 

 

 

6

 

 

 

0

 

Ending Balance

 

$

12

 

 

$

15

 

 

$

10

 

 

  
Assets Measured at Fair Value on Non-Recurring Basis

Assets measured at fair value on a non-recurring basis are summarized below:

 

 

 

Fair Value Measurements

 

 

 

at December 31, 2016 Using:

 

 

 

Carrying Value

 

 

Quoted Prices  in

Active Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

$

23

 

 

$

0

 

 

$

0

 

 

$

23

 

Farmland

 

 

339

 

 

 

0

 

 

 

0

 

 

 

339

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

 

 

113

 

 

 

0

 

 

 

0

 

 

 

113

 

1–4 family residential

 

 

77

 

 

 

0

 

 

 

0

 

 

 

77

 

Consumer

 

 

2

 

 

 

0

 

 

 

0

 

 

 

2

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1–4 family residential

 

 

16

 

 

 

0

 

 

 

0

 

 

 

16

 

 

 

 

Fair Value Measurements

 

 

 

at December 31, 2015 Using:

 

 

 

Carrying Value

 

 

Quoted Prices  in

Active Markets for

Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

$

1,448

 

 

$

0

 

 

$

0

 

 

$

1,448

 

Commercial

 

 

1,514

 

 

 

0

 

 

 

0

 

 

 

1,514

 

1–4 family residential

 

 

42

 

 

 

0

 

 

 

0

 

 

 

42

 

Consumer

 

 

13

 

 

 

0

 

 

 

0

 

 

 

13

 

 

  
Fair Value Measurements for Financial Instruments

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at year ended 2016 and 2015:

 

December 31, 2016

 

Fair value

 

 

Valuation

Technique(s)

 

Unobservable

Input(s)

 

Range

Weighted Average

Impaired loans

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

23

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(24.02%)

 

 

 

339

 

 

Quoted price for loan relationship

 

Offer price

 

35.77%

Commercial

 

 

113

 

 

Quoted price for loan relationship

 

Offer price

 

34.98%

Residential

 

 

77

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(12.97%) - 14.22%

(3.38%)

Consumer

 

 

2

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(20.00%) - 20.00%

(0.00%)

Other real estate owned - residential

 

 

16

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(10.36%) - 17.10%

(1.90%)

 

December 31, 2015

 

Fair value

 

 

Valuation

Technique(s)

 

Unobservable

Input(s)

 

Range

Weighted Average

Impaired loans

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

701

 

 

Income approach

 

Adjustment for differences between earning multiplier

 

(49.42%) - 40.89%

35.33%

 

 

 

747

 

 

Quoted price for loan relationship

 

Offer price

 

1.01%

Commercial

 

 

252

 

 

Quoted price for loan relationship

 

Offer price

 

(3.01%)

 

 

 

1,262

 

 

Income approach

 

Adjustment for differences between earning multiplier

 

(29.77%)

Residential

 

 

42

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(18.32%) - 24.16%

(14.02%)

Consumer

 

 

13

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(12.86%) - 11.97%

(5.79%)

 

  
Carrying Amounts and Estimated Fair Values of Financial Instruments Measured on Recurring Basis

The carrying amounts and estimated fair values of financial instruments measured on a recurring basis and not previously presented, at December 31, 2016 and December 31, 2015 are as follows:

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2016 Using:

 

 

 

Carrying Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

41,778

 

 

$

19,678

 

 

$

22,100

 

 

$

0

 

 

$

41,778

 

Restricted stock

 

 

9,583

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

 

Loans held for sale

 

 

355

 

 

 

0

 

 

 

365

 

 

 

0

 

 

 

365

 

Loans, net

 

 

1,416,783

 

 

 

0

 

 

 

0

 

 

 

1,406,951

 

 

 

1,406,951

 

Mortgage servicing rights

 

 

854

 

 

 

0

 

 

 

854

 

 

 

0

 

 

 

854

 

Accrued interest receivable

 

 

5,504

 

 

 

0

 

 

 

1,924

 

 

 

3,580

 

 

 

5,504

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,524,756

 

 

 

1,289,037

 

 

 

232,410

 

 

 

0

 

 

 

1,521,447

 

Short-term borrowings

 

 

198,460

 

 

 

0

 

 

 

198,460

 

 

 

0

 

 

 

198,460

 

Long-term borrowings

 

 

15,036

 

 

 

0

 

 

 

15,009

 

 

 

0

 

 

 

15,009

 

Accrued interest payable

 

 

507

 

 

 

35

 

 

 

472

 

 

 

0

 

 

 

507

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2015 Using:

 

 

 

Carrying Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

56,014

 

 

$

22,500

 

 

$

33,514

 

 

$

0

 

 

$

56,014

 

Restricted stock

 

 

9,384

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

 

Loans held for sale

 

 

1,769

 

 

 

0

 

 

 

1,813

 

 

 

0

 

 

 

1,813

 

Loans, net

 

 

1,287,887

 

 

 

0

 

 

 

0

 

 

 

1,296,075

 

 

 

1,296,075

 

Mortgage servicing rights

 

 

453

 

 

 

0

 

 

 

453

 

 

 

0

 

 

 

453

 

Accrued interest receivable

 

 

5,158

 

 

 

0

 

 

 

2,011

 

 

 

3,147

 

 

 

5,158

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,409,047

 

 

 

1,164,506

 

 

 

241,909

 

 

 

0

 

 

 

1,406,415

 

Short-term borrowings

 

 

225,832

 

 

 

0

 

 

 

225,832

 

 

 

0

 

 

 

225,832

 

Long-term borrowings

 

 

22,153

 

 

 

0

 

 

 

22,306

 

 

 

0

 

 

 

22,306

 

Accrued interest payable

 

 

445

 

 

 

26

 

 

 

419

 

 

 

0

 

 

 

445