Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on recurring basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016.

	Quoted Prices		Significant Other Observable Inputs		Significant Other Unobservable		Total
(dollars in thousands)	(Level 1)		(Level 2)		Inputs (Level 3)		(Fair Value)
June 30, 2017
Assets:
Investment securities available for sale:
U. S. agency securities	$	—	$	145,862	$	—	$	145,862
Residential mortgage backed securities		—		296,541		—		296,541
Municipal bonds		—		44,886		—		44,886
Corporate bonds		—		8,665		1,500		10,165
Other equity investments		—		—		218		218
Loans held for sale		—		49,327		—		49,327
Mortgage banking derivatives		—		—		47		47
Interest rate swap derivatives		—		56		—		56
Total assets measured at fair value on  a recurring basis as of June 30, 2017	$	—	$	545,337	$	1,765	$	547,102
Liabilities:
Mortgage banking derivatives	$	—	$	—	$	47	$	47
Interest rate swap derivatives		—		157		—		157
Total liabilities measured at fair value on a recurring basis as of June 30, 2017	$	—	$	157	$	47	$	204
December 31, 2016
Assets:
Investment securities available for sale:
U. S. agency securities	$	—	$	106,142	$	—	$	106,142
Residential mortgage backed securities		—		326,239		—		326,239
Municipal bonds		—		95,930		—		95,930
Corporate bonds		—		8,079		1,500		9,579
Other equity investments		—		—		218		218
Loans held for sale		—		51,629		—		51,629
Mortgage banking derivatives		—		—		114		114
Total assets measured at fair value on a recurring basis as of December 31, 2016	$	—	$	588,019	$	1,832	$	589,851
Liabilities:
Mortgage banking derivatives	$	—	$	—	$	55	$	55
Interest rate swap derivatives		—		692		—		692
Total liabilities measured at fair value on a recurring basis as of December 31, 2016	$	—	$	692	$	55	$	747

Schedule of reconciliation of activity of siginificant unobservable inputs (Level 3)

The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3):

(dollars in thousands)	Investment Securities		Mortgage Banking Derivatives			Total
Assets:
Beginning balance at January 1, 2017	$	1,718	$	114		$	1,832
Realized loss included in earnings - net mortgage banking derivatives		—		(67	)		(67	)
Purchases of available-for-sale securities		—		—			—
Principal redemption		—		—			—
Ending balance at June 30, 2017	$	1,718	$	47		$	1,765
Liabilities:
Beginning balance at January 1, 2017	$	—	$	55		$	55
Realized loss included in earnings - net mortgage banking derivatives		—		(8	)		(8	)
Principal redemption		—		—			—
Ending balance at June 30, 2017	$	—	$	47		$	47

(dollars in thousands)	Investment  Securities			Mortgage Banking Derivatives			Total
Assets:
Beginning balance at January 1, 2016	$	219		$	24	$	243
Realized gain included in earnings - net mortgage banking derivatives		—			90		90
Purchases of available-for-sale securities		1,500			—		1,500
Principal redemption		(1	)		—		(1	)
Ending balance at December 31, 2016	$	1,718		$	114	$	1,832
Liabilities:
Beginning balance at January 1, 2016	$	—		$	30	$	30
Realized loss included in earnings - net mortgage banking derivatives		—			25		25
Principal redemption		—			—		—
Ending balance at December 31, 2016	$	—		$	55	$	55

Schedule of assets measured at fair value on nonrecurring basis

Assets measured at fair value on a nonrecurring basis are included in the table below: 

(dollars in thousands)	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total (Fair Value)
June 30, 2017
Impaired loans:
Commercial	$	—	$	—	$	3,249	$	3,249
Income producing - commercial real estate		—		—		8,670		8,670
Owner occupied - commercial real estate		—		—		5,363		5,363
Real estate mortgage - residential		—		—		304		304
Construction - commercial and residential		—		—		5,765		5,765
Home equity		—		—		504		504
Other consumer		—		—		40		40
Other real estate owned		—		—		1,394		1,394
Total assets measured at fair value on a nonrecurring basis as of June 30, 2017	$	—	$	—	$	25,289	$	25,289

(dollars in thousands)	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total (Fair Value)
December 31, 2016
Impaired loans:
Commercial	$	—	$	—	$	2,956	$	2,956
Income producing - commercial real estate		—		—		12,993		12,993
Owner occupied - commercial real estate		—		—		2,133		2,133
Real estate mortgage - residential		—		—		555		555
Construction - commercial and residential		—		—		1,550		1,550
Other consumer		—		—		13		13
Other real estate owned		—		—		2,694		2,694
Total assets measured at fair value on a nonrecurring basis as of December 31, 2016	$	—	$	—	$	22,894	$	22,894

Schedule of fair value by balance sheet grouping

The estimated fair values of the Company’s financial instruments at June 30, 2017 and December 31, 2016 are as follows:

					Fair Value Measurements
					Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2017
Assets
Cash and due from banks	$	10,948	$	10,948	$	—	$	10,948	$	—
Federal funds sold		7,417		7,417		—		7,417		—
Interest bearing deposits with other banks		429,336		429,336		—		429,336		—
Investment securities		497,672		497,672		—		495,954		1,718
Federal Reserve and Federal Home Loan Bank stock		28,603		28,603		—		28,603		—
Loans held for sale		49,327		49,327		—		49,327		—
Loans		5,985,031		5,994,186		—		—		5,994,186
Bank owned life insurance		60,869		60,869		—		60,869		—
Annuity investment		11,621		11,621		—		11,621		—
Mortgage banking derivatives		47		47		—		—		47
Interst rate swap derivatives		56		56.00		—		56		—
Liabilities
Noninterest bearing deposits		1,851,437		1,851,437		—		1,851,437		—
Interest bearing deposits		3,136,191		3,136,191		—		3,136,191		—
Certificates of deposit		880,069		876,884		—		876,884		—
Customer repurchase agreements		74,362		74,362		—		74,362		—
Borrowings		361,710		279,756		—		279,756		—
Mortgage banking derivatives		47		47		—		—		47
Interest rate swap derivatives		157		157		—		157		—
December 31, 2016
Assets
Cash and due from banks	$	10,285	$	10,285	$	—	$	10,285	$	—
Federal funds sold		2,397		2,397		—		2,397		—
Interest bearing deposits with other banks		355,481		355,481		—		355,481		—
Investment securities		538,108		538,108		—		536,390		1,718
Federal Reserve and Federal Home Loan Bank stock		21,600		21,600		—		21,600		—
Loans held for sale		51,629		51,629		—		51,629		—
Loans		5,677,893		5,683,158		—		—		5,683,158
Bank owned life insurance		60,130		60,130		—		60,130		—
Annuity investment		11,929		11,929		—		11,929		—
Mortgage banking derivatives		114		114		—		—		114
Liabilities
Noninterest bearing deposits		1,775,684		1,775,684		—		1,775,684		—
Interest bearing deposits		3,191,682		3,191,682		—		3,191,682		—
Certificates of deposit		748,748		745,985		—		745,985		—
Customer repurchase agreements		68,876		68,876		—		68,876		—
Borrowings		216,514		203,657		—		203,657		—
Mortgage banking derivatives		55		55		—		—		55
Interest rate swap derivatives		692		692		—		692		—