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Fair Value (Tables)
 6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value
The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).
 
 
June 30, 2015
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
1,359

 
$
—

 
$
1,359

Mortgage Backed Securities-residential
 
—

 
188,747

 
—

 
188,747

Mortgage Backed Securities-commercial
 
—

 
13

 
—

 
13

Collateralized mortgage obligations
 
—

 
484,795

 
—

 
484,795

State and municipal
 
—

 
207,045

 
4,725

 
211,770

Collateralized debt obligations
 
—

 
—

 
14,866

 
14,866

TOTAL
 
$
—

 
$
881,959

 
$
19,591

 
$
901,550

Derivative Assets
 
 

 
997

 
 

 
 

Derivative Liabilities
 
 

 
(997
)
 
 

 
 

 
 
December 31, 2014
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
1,467

 
$
—

 
$
1,467

Mortgage Backed Securities-residential
 
—

 
187,936

 
—

 
187,936

Mortgage Backed Securities-commercial
 
—

 
17

 
—

 
17

Collateralized mortgage obligations
 
—

 
484,655

 
—

 
484,655

State and municipal
 
—

 
201,775

 
5,900

 
207,675

Collateralized debt obligations
 
—

 
—

 
15,303

 
15,303

TOTAL
 
$
—

 
$
875,850

 
$
21,203

 
$
897,053

Derivative Assets
 
 

 
1,062

 
 

 
 

Derivative Liabilities
 
 

 
(1,062
)
 
 

 
 
Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)
The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2015 and the year ended December 31, 2014. 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Three Months Ended June 30, 2015
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, April 1
$
4,725

 
$
15,308

 
$
20,033

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
(350
)
 
(350
)
Transfers
—

 
—

 
—

Settlements
—

 
(92
)
 
(92
)
Ending balance, June 30
$
4,725

 
$
14,866

 
$
19,591

 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Six Months Ended June 30, 2015
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
$
5,900

 
$
15,303

 
$
21,203

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
(185
)
 
(185
)
Transfers
—

 
—

 
—

Settlements
(1,175
)
 
(252
)
 
(1,427
)
Ending balance, June 30
$
4,725

 
$
14,866

 
$
19,591


 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Year Ended December 31, 2014
 
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
 
$
4,525

 
$
9,044

 
$
13,569

Total realized/unrealized gains or losses
 
 

 
 

 
 

Included in earnings
 
—

 
—

 
—

Included in other comprehensive income
 
—

 
7,100

 
7,100

Purchases
 
4,000

 
—

 
4,000

Settlements
 
(2,625
)
 
(841
)
 
(3,466
)
Ending balance, December 31
 
$
5,900

 
$
15,303

 
$
21,203
Quantitative information about recurring and non-recurring Level 3
The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at June 30, 2015.
 
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
4,725

 
Discounted cash flow
 
Discount rate
Probability of default
 
3.05%-5.50% 0%
Other real estate  
 
$
3,625

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
$
3,605

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2014.
 
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
5,900

 
Discounted cash flow
 
Discount rate
Probability of default
 
3.05%-5.50% 0%
Other real estate  
 
$
3,965

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
11,477

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
0.00%-50.00%
Schedule of loans identified as impaired by class of loans
The following tables presents loans identified as impaired by class of loans as of June 30, 2015 and December 31, 2014, which are all considered Level 3.
 
 
June 30, 2015
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
1,809

 
$
294

 
$
1,515

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
2,350

 
919

 
1,431

Agriculture
 
—

 
—

 
—

All Other Commercial
 
552

 
92

 
460

Residential
 
 

 
 

 
 

First Liens
 
226

 
27

 
199

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
4,937

 
$
1,332

 
$
3,605

 
 
December 31, 2014
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
5,874

 
$
1,056

 
$
4,818

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
6,654

 
753

 
5,901

Agriculture
 
—

 
—

 
 

All Other Commercial
 
827

 
102

 
725

Residential
 
 

 
 

 
 

First Liens
 
33

 
—

 
33

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
13,388

 
$
1,911

 
$
11,477
Schedule of carrying amount and estimated fair value of financial instruments
The fair value of off-balance sheet items is not considered material.
 
 
June 30, 2015
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
60,613

 
$
20,743

 
$
39,870

 
$
—

 
$
60,613

Federal funds sold
 
2,000

 
—

 
2,000

 
—

 
2,000

Securities available-for-sale
 
901,550

 
—

 
881,959

 
19,591

 
901,550

Restricted stock
 
10,828

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,763,927

 
—

 
—

 
1,812,200

 
1,812,200

Accrued interest receivable
 
11,116

 
—

 
3,296

 
7,820

 
11,116

Deposits
 
(2,398,574
)
 
—

 
(2,400,793
)
 
—

 
(2,400,793
)
Short-term borrowings
 
(84,819
)
 
—

 
(84,819
)
 
—

 
(84,819
)
Federal Home Loan Bank advances
 
(10,738
)
 
—

 
(11,213
)
 
—

 
(11,213
)
Accrued interest payable
 
(382
)
 
—

 
(382
)
 
—

 
(382
)
 
 
December 31, 2014
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
78,102

 
$
22,597

 
$
55,505

 
$
—

 
$
78,102

Federal funds sold
 
8,000

 
—

 
8,000

 
—

 
8,000

Securities available-for-sale
 
897,053

 
—

 
875,850

 
21,203

 
897,053

Restricted stock
 
16,404

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,762,589

 
—

 
—

 
1,810,885

 
1,810,885

FDIC Indemnification Asset
 
(74
)
 
—

 
(74
)
 
—

 
(74
)
Accrued interest receivable
 
11,593

 
—

 
3,183

 
8,410

 
11,593

Deposits
 
(2,457,197
)
 
—

 
(2,459,703
)
 
—

 
(2,459,703
)
Short-term borrowings
 
(48,015
)
 
—

 
(48,015
)
 
—

 
(48,015
)
Federal Home Loan Bank advances
 
(12,886
)
 
—

 
(13,605
)
 
—

 
(13,605
)
Accrued interest payable
 
(456
)
 
—

 
(456
)
 
—

 
(456
)