Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Fair Values of Assets and Liabilities [Abstract]

Assets and Liabilities Recorded at Fair Value on Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 (dollars in thousands):


	June 30, 2021
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury securities	$	10,229	$	2,353	$	7,876	$	—
U.S. Government agencies		47,760		5,247		42,513		—
State, county and municipal		151,309		10,753		140,556		—
Mortgage backed securities		38,024		6,111		31,913		—
Asset backed securities		47,767		—		47,767		—
Corporate bonds		26,670		—		26,670		—
Total investment securities available for sale		321,759		24,464		297,295		—
Total assets at fair value	$	321,759	$	24,464	$	297,295	$	—
Cash flow hedge liability	$	424		—	$	424		—
Total liabilities at fair value	$	424	$	—	$	424	$	—


	December 31, 2020
	Total		Level 1		Level 2		Level 3
Investment securities available for sale
U.S. Treasury securities	$	23,499	$	23,499	$	—	$	—
U.S. Government agencies		25,853		4,034		21,819		—
State, county and municipal		125,720		5,945		119,775		—
Mortgage backed securities		32,189		5,534		26,655		—
Asset backed securities		37,488		9,784		27,704		—
Corporate bonds		26,598		500		26,098		—
Total investment securities available for sale		271,347		49,296		222,051		—
Total assets at fair value	$	271,347	$	49,296	$	222,051	$	—
Cash flow hedge liability		631		—	$	631		—
Total liabilities at fair value	$	631	$	—	$	631	$	—

Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The following tables present assets measured at fair value on a nonrecurring basis as of June 30, 2021 and December 31, 2020 (dollars in thousands):


	June 30, 2021
	Total		Level 1		Level 2		Level 3
Impaired loans	$	2,142	$	—	$	—	$	2,142
Bank premises and equipment held for sale		1,507		—		—		1,507
Other real estate owned		364		—		—		364
Total assets at fair value	$	4,013	$	—	$	—	$	4,013
Total liabilities at fair value	$	—	$	—	$	—	$	—


	December 31, 2020
	Total		Level 1		Level 2		Level 3
Impaired loans	$	3,449	$	—	$	—	$	3,449
Bank premises and equipment held for sale		1,507		—		—		1,507
Other real estate owned		4,361		—		—		4,361
Total assets at fair value	$	9,317	$	—	$	—	$	9,317
Total liabilities at fair value	$	—	$	—	$	—	$	—

Summary of Fair Value of Financial Instruments

These tables exclude financial instruments for which the carrying value approximates fair value (dollars in thousands):


	June 30, 2021
			Estimated Fair
	Carrying Value		Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	19,824	$	20,698	$	—	$	20,698	$	—
Loans, net of allowance		1,180,835		1,193,023		—		—		1,193,023
PCI loans, net of allowance		17,787		24,493		—		—		24,493

Financial liabilities:
Interest bearing deposits		1,149,116		1,151,776		—		1,151,776		—
Borrowings		71,624		72,223		—		72,223		—


	December 31, 2020
			Estimated Fair
	Carrying Value		Value		Level 1		Level 2		Level 3
Financial assets:
Securities held to maturity	$	21,176	$	22,257	$	—	$	22,257	$	—
Loans, net of allowance		1,170,022		1,178,764		—		—		1,178,764
PCI loans, net of allowance		23,884		32,657		—		—		32,657

Financial liabilities:
Interest bearing deposits		1,099,800		1,103,112		—		1,103,112		—
Borrowings		61,957		62,852		—		62,852		—

Community Bankers Trust Corp 10-Q