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Fair Value Measurements and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2018 and December 31, 2017 are as follows:

			June 30, 2018
			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
			(Level 1)		(Level 2)		(Level 3)
			(dollars in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Available-for-sale:
Federal agency obligations	$	51,484	$	-	$	51,484	$	-
Residential mortgage pass-through securities		180,103		-		180,103		-
Commercial mortgage pass-through securities		3,893		-		3,893		-
Obligations of U.S. states and political subdivision		123,629		-		114,124		9,505
Corporate bonds and notes		27,464		-		27,464		-
Asset-backed securities		10,946		-		10,946		-
Certificates of deposit		424		-		424		-
Other securities		2,072		2,072		-		-
Total available-for-sale	$	400,015	$	2,072	$	388,438	$	9,505

Equity securities		11,559		11,559		-		-

Derivatives		1,893		-		1,893		-
Total assets	$	413,467	$	13,631	$	390,331	$	9,505

			December 31, 2017
			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
			(Level 1)		(Level 2)		(Level 3)
			(dollars in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Available-for-sale:
Federal agency obligations	$	56,022	$	-	$	56,022	$	-
Residential mortgage pass-through securities		181,891		-		181,891		-
Commercial mortgage pass-through securities		4,054		-		4,054		-
Obligations of U.S. states and political subdivision		131,128		-		121,496		9,632
Trust preferred securities		4,671		-		4,671		-
Corporate bonds and notes		29,693		-		29,693		-
Asset-backed securities		12,050		-		12,050		-
Certificates of deposit		625		-		625		-
Equity securities		11,728		11,728		-		-
Other securities		3,422		3,422		-		-
Total available-for-sale	$	435,284	$	15,150	$	410,502	$	9,632
Derivatives		798		-		798		-
Total assets	$	436,082	$	15,150	$	411,300	$	9,632

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

For assets measured at fair value on a nonrecurring basis, the fair value measurements at June 30, 2018 and December 31, 2017 are as follows:

Fair Value Measurements at Reporting Date Using

Quoted

Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

Assets measured at fair value on a nonrecurring basis:

June 30, 2018

(Level 1)

(Level 2)

(Level 3)

Impaired loans:

(dollars in thousands)

Commercial real estate

7,866

Fair Value Measurements at Reporting Date Using

Quoted

Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

December 31,

Assets

Inputs

Assets measured at fair value on a nonrecurring basis:

2017

(Level 1)

(Level 2)

(Level 3)

Impaired loans:

(dollars in thousands)

Commercial real estate

1,094

Fair Value, Recurring basis [Table Text Block]

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2018 and for the year ended December 31, 2017:

	Municipal
	Securities
	(dollars in thousands)
Beginning balance, January 1, 2018	$	9,632
Principal paydowns		(127	)
Ending balance, June 30, 2018	$	9,505

	Municipal
	Securities
	(dollars in thousands)
Beginning balance, January 1, 2017	$	18,218
Principal paydowns		(8,586	)
Ending balance, December 31, 2017	$	9,632

Significant unobservable inputs used in fair value measurements [Table Text Block]

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

June 30, 2018
			Valuation	Unobservable
	Fair Value		Techniques	Input	Range
Securities available-for-sale:			(dollars in thousands)
Municipal securities	$	9,505	Discounted cash flows	Discount rate	2.9	%

December 31, 2017
			Valuation	Unobservable
	Fair Value		Techniques	Input	Range
Securities available-for-sale:			(dollars in thousands)
Municipal securities	$	9,632	Discounted cash flows	Discount rate	2.9	%

Fair Value Measurements, Nonrecurring [Table Text Block]

Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Nonrecurring basis: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

June 30, 2018
			Valuation	Unobservable
	Fair Value		Techniques	Input	Range
Impaired loans:			(dollars in thousands)
Commercial real estate	$	7,866	Sales comparison approach	Adjustment for differences between the comparable sales	0% - 20% [10%]

December 31, 2017
			Valuation	Unobservable
	Fair Value		Techniques	Input	Range
Impaired loans:			(dollars in thousands)
Commercial real estate	$	1,094	Sales comparison approach	Adjustment for differences between the comparable sales	0% - 10% [5%]

Fair Value, by Balance Sheet Grouping [Table Text Block]

As of June 30, 2018 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement, in which fair value represents exit price. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2018 and December 31, 2017:

					Fair Value Measurements
					Quoted
					Prices in
					Active		Significant
					Markets for		Other		Significant
					Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
	Amount		Value		(Level 1)		(Level 2)		(Level 3)
	(dollars in thousands)
June 30, 2018
Financial assets:
Cash and cash equivalents	$	176,169	$	176,169	$	176,169	$	-	$	-
Securities available-for-sale		400,015		400,015		2,072		388,438		9,505
Equity securities		11,559		11,559		11,559		-		-
Net loans		4,327,260		4,224,643		-		-		4,224,643
Derivatives		1,893		1,893		-		1,893		-

Financial liabilities:
Noninterest-bearing deposits		765,150		765,150		765,150		-		-
Interest-bearing deposits		3,140,260		3,132,639		1,824,417		1,308,222		-
Borrowings		628,995		626,369		-		626,369		-
Subordinated debentures		128,392		125,444		-		125,444		-

December 31, 2017
Financial assets:
Cash and cash equivalents	$	149,582	$	149,582	$	149,582	$	-	$	-
Securities available-for-sale		435,284		435,284		15,150		410,502		9,632
Loans held-for-sale		24,845		24,845		-		370		24,475
Net loans		4,139,708		4,118,542		-		-		4,118,542
Derivatives		798		798		-		798		-

Financial liabilities:
Noninterest-bearing deposits		776,843		776,843		776,843		-		-
Interest-bearing deposits		3,018,285		3,018,285		1,842,151		1,176,134		-
Borrowings		670,077		669,680		-		669,680		-
Subordinated debentures		54,699		57,340		-		57,340		-