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Fair Value (Tables)
 9 Months Ended
Sep. 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).
 
 
September 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
 
$
—

 
$
11,120

 
$
—

 
$
11,120

Mortgage Backed Securities-residential
 
—

 
194,340

 
—

 
194,340

Mortgage Backed Securities-commercial
 
—

 
10

 
—

 
10

Collateralized mortgage obligations
 
—

 
453,909

 
—

 
453,909

State and municipal
 
—

 
206,615

 
4,725

 
211,340

Collateralized debt obligations
 
—

 
—

 
15,117

 
15,117

TOTAL
 
$
—

 
$
865,994

 
$
19,842

 
$
885,836

Derivative Assets
 
 

 
1,568

 
 

 
 

Derivative Liabilities
 
 

 
(1,568
)
 
 

 
 

 
 
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 nine months ended September 30, 2015 and the year ended December 31, 2014. 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Three Months Ended September 30, 2015
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, July 1
$
4,725

 
$
14,866

 
$
19,591

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
307

 
307

Transfers
—

 
—

 
—

Settlements
—

 
(56
)
 
(56
)
Ending balance, September 30
$
4,725

 
$
15,117

 
$
19,842

 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Nine Months Ended September 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
—

 
122

 
122

Transfers
—

 
—

 
—

Settlements
(1,175
)
 
(308
)
 
(1,483
)
Ending balance, September 30
$
4,725

 
$
15,117

 
$
19,842


 
 
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 September 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  
 
$
3,382

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
$
3,033

 
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 September 30, 2015 and December 31, 2014, which are all considered Level 3.
 
 
September 30, 2015
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
1,618

 
$
278

 
$
1,340

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
1,506

 
718

 
788

Agriculture
 
—

 
—

 
—

All Other Commercial
 
233

 
—

 
233

Residential
 
 

 
 

 
 

First Liens
 
904

 
232

 
672

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
4,261

 
$
1,228

 
$
3,033

 
 
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.
 
 
September 30, 2015
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
63,278

 
$
21,962

 
$
41,316

 
$
—

 
$
63,278

Federal funds sold
 
—

 
—

 
—

 
—

 
—

Securities available-for-sale
 
885,836

 
—

 
865,994

 
19,842

 
885,836

Restricted stock
 
10,838

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,746,742

 
—

 
—

 
1,804,961

 
1,804,961

Accrued interest receivable
 
12,265

 
—

 
3,719

 
8,546

 
12,265

Deposits
 
(2,418,589
)
 
—

 
(2,420,624
)
 
—

 
(2,420,624
)
Short-term borrowings
 
(23,336
)
 
—

 
(23,336
)
 
—

 
(23,336
)
Federal Home Loan Bank advances
 
(13,251
)
 
—

 
(13,683
)
 
—

 
(13,683
)
Accrued interest payable
 
(396
)
 
—

 
(396
)
 
—

 
(396
)
 
 
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
)