FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2017

FAIR VALUE DISCLOSURES

Summary financial assets and financial liabilities measured at fair value on a recurring basis

	December 31, 2017
	Level 1		Level 2		Level 3
(Dollars in thousands)	Inputs		Inputs		Inputs		Total
Financial assets:
Securities available for sale
State and municipal securities	$	—	$	61,916	$	—	$	61,916
U.S. Agency Securities:
Debt securities		—		16,945		—		16,945
Collateralized mortgage obligations		—		61,253		—		61,253
Mortgage-backed securities		—		81,974		—		81,974
Other securities		1,087		—		—		1,087
Interest rate swaps with customers		—		340		—		340
Interest rate swaps with financial institutions		—		426		—		426
Total financial assets	$	1,087	$	222,854	$	—	$	223,941
Financial liabilities:
Interest rate swaps with customers	$	—	$	426	$	—	$	426
Interest rate swaps with financial institutions		—		340		—		340
Total financial liabilities	$	—	$	766	$	—	$	766

	December 31, 2016
	Level 1		Level 2		Level 3
(Dollars in thousands)	Inputs		Inputs		Inputs		Total
Financial assets:
Securities available for sale
State and municipal securities	$	—	$	58,979	$	—	$	58,979
U.S. Agency Securities:
Debt securities		—		20,341		—		20,341
Collateralized mortgage obligations		—		33,770		—		33,770
Mortgage-backed securities		—		91,790		—		91,790
Other securities		1,064		—		—		1,064
Interest rate swaps with customers		—		430		—		430
Interest rate swaps with financial institutions		—		350		—		350
Total financial assets	$	1,064	$	205,660	$	—	$	206,724
Financial liabilities:
Interest rate swaps with customers	$	—	$	350	$	—	$	350
Interest rate swaps with financial institutions		—		430		—		430
Total financial liabilities	$	—	$	780	$	—	$	780

Summary of certain assets measured on a non‑recurring basis

	December 31, 2017
	Level 1		Level 2		Level 3
(Dollars in thousands)	Inputs		Inputs		Inputs		Total
Impaired loans:
Commercial and industrial	$	—	$	—	$	340	$	340
Commercial real estate		—		—		603		603
1-4 family residential		—		—		1,755		1,755
Total impaired loans	$	—	$	—	$	2,698	$	2,698

	December 31, 2016
	Level 1		Level 2		Level 3
(Dollars in thousands)	Inputs		Inputs		Inputs		Total
Impaired loans:
Commercial and industrial	$	—	$	—	$	3,765	$	3,765
Commercial real estate		—		—		1,660		1,660
Total impaired loans	$	—	$	—	$	5,425	$	5,425

Summary of foreclosed assets that were remeasured subsequent to initial recognition

	December 31,		December 31,
(Dollars in thousands)	2017		2016
Foreclosed assets remeasured at initial recognition:
Carrying value of foreclosed assets prior to measurement	$	881	$	2,018
Charge-offs recognized in the allowance for loan losses		—		(47)
Fair value	$	881	$	1,971
Foreclosed assets remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to measurement	$	227	$	630
Write-downs included in other noninterest expense		(51)		(65)
Fair value	$	176	$	565

Summary of fair market values of all financial instruments

	Level 1		Level 2		Level 3		Total		Carrying
(Dollars in thousands)	Inputs		Inputs		Inputs		Fair Value		Amount
December 31, 2017
Financial assets:
Cash and due from banks	$	59,255	$	—	$	—	$	59,255	$	59,255
Interest bearing deposits in banks		266,944		—		—		266,944		266,944
Time deposits in other banks		—		600		—		600		600
Securities available for sale		—		222,088		—		222,088		222,088
Other securities		1,087		—		—		1,087		1,087
Securities held to maturity		—		35		—		35		33
Other investments		—		—		12,226		12,226		12,226
Loans, including held for sale, net		—		—		2,299,742		2,299,742		2,288,226
Bank-owned life insurance		—		68,010		—		68,010		68,010
Servicing asset		—		209		—		209		209
Accrued interest receivable		—		7,429		—		7,429		7,429
Interest rate swaps with customers		—		340		—		340		340
Interest rate swaps with financial institutions		—		426		—		426		426
Total financial assets	$	327,286	$	299,137	$	2,311,968	$	2,938,391	$	2,926,873
Financial liabilities:
Noninterest-bearing deposits	$	1,109,789	$	—	$	—	$	1,109,789	$	1,109,789
Interest-bearing deposits		—		1,437,013		—		1,437,013		1,493,183
Repurchase agreements		—		1,525		—		1,525		1,525
Junior subordinated debt		—		6,726		—		6,726		6,726
Accrued interest payable		—		374		—		374		374
Interest rate swaps with customers		—		426		—		426		426
Interest rate swaps with financial institutions		—		340		—		340		340
Total financial liabilities	$	1,109,789	$	1,446,404	$	—	$	2,556,193	$	2,612,363

	Level 1		Level 2		Level 3		Total		Carrying
(Dollars in thousands)	Inputs		Inputs		Inputs		Fair Value		Amount
December 31, 2016
Financial assets:
Cash and due from banks	$	53,000	$	—	$	—	$	53,000	$	53,000
Interest bearing deposits in banks		329,103		—		—		329,103		329,103
Time deposits in other banks		—		600		—		600		600
Securities available for sale		—		204,880		—		204,880		204,880
Other securities		1,064		—		—		1,064		1,064
Securities held to maturity		—		37		—		37		34
Other investments		—		—		12,063		12,063		12,063
Loans, including held for sale, net		—		—		2,139,645		2,139,645		2,130,492
Bank-owned life insurance		—		51,430		—		51,430		51,430
Servicing asset		—		186		—		186		186
Accrued interest receivable		—		6,674		—		6,674		6,674
Interest rate swaps with customers		—		430		—		430		430
Interest rate swaps with financial institutions		—		350		—		350		350
Total financial assets	$	383,167	$	264,587	$	2,151,708	$	2,799,462	$	2,790,306
Financial liabilities:
Noninterest-bearing deposits	$	1,025,425	$	—	$	—	$	1,025,425	$	1,025,425
Interest-bearing deposits		—		1,451,512		—		1,451,512		1,515,335
Repurchase agreements		—		2,342		—		2,342		2,343
Junior subordinated debt		—		6,726		—		6,726		6,726
Note payable		—		27,679		—		27,679		27,679
Accrued interest payable		—		582		—		582		582
Interest rate swaps with customers		—		350		—		350		350
Interest rate swaps with financial institutions		—		430		—		430		430
Total financial liabilities	$	1,025,425	$	1,489,621	$	—	$	2,515,046	$	2,578,870