2019 BBNC Annual Report | Page 63

(7) FAIR VALUE MEASUREMENTS FASB ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Corporation has the ability to assess at the measurement date. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for the asset or liability. (A) FAIR VALUE MEASUREMENTS ON A RECURRING BASIS Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Corporation assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their level within the fair value hierarchy. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 and 2018 at each hierarchical level (in thousands): 2019 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 5,038 5,038 — — 18,965 18,965 — — ASSETS TRADING SECURITIES Money market funds $ Equities: Domestic International 1,659 1,659 — — 102,477 102,477 — — 22,435 — 22,435 — 209 — 209 — 25 — 25 — $ 150,808 128,139 22,669 — — 58 — Mutual funds Fixed income: Government sponsored Corporate-domestic Corporate-international TOTAL TRADING SECURITIES LIABILITIES Interest rate swaps $ 58 M anagement ' s D iscussion and A nalysis 61