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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2016
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, 2016
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
14,399

 
$
—

 
$
14,399

Mortgage Backed Securities-residential
 
—

 
233,405

 
—

 
233,405

Mortgage Backed Securities-commercial
 
—

 
5

 
—

 
5

Collateralized mortgage obligations
 
—

 
382,862

 
—

 
382,862

State and municipal
 
—

 
220,309

 
4,210

 
224,519

Collateralized debt obligations
 
—

 
—

 
11,511

 
11,511

TOTAL
 
$
—

 
$
850,980

 
$
15,721

 
$
866,701

Derivative Assets
 
 

 
1,750

 
 

 
 

Derivative Liabilities
 
 

 
(1,750
)
 
 

 
 

 
 
December 31, 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
 
$
—

 
$
10,693

 
$
—

 
$
10,693

Mortgage Backed Securities-residential
 
—

 
213,164

 
—

 
213,164

Mortgage Backed Securities-commercial
 
—

 
9

 
—

 
9

Collateralized mortgage obligations
 
—

 
437,634

 
—

 
437,634

State and municipal
 
—

 
209,982

 
4,725

 
214,707

Collateralized debt obligations
 
—

 
—

 
14,875

 
14,875

TOTAL
 
$
—

 
$
871,482

 
$
19,600

 
$
891,082

Derivative Assets
 
 

 
1,176

 
 

 
 

Derivative Liabilities
 
 

 
(1,176
)
 
 

 
 
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, 2016 and the year ended December 31, 2015. 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Three Months Ended September 30, 2016
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, July 1
$
4,210

 
$
11,436

 
$
15,646

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
99

 
99

Transfers
—

 
—

 
—

Settlements
—

 
(24
)
 
(24
)
Ending balance, September 30
$
4,210

 
$
11,511

 
$
15,721

 
 
 
Nine Months Ended September 30, 2016
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, July 1
$
4,725

 
$
14,875

 
$
19,600

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
(3,109
)
 
(3,109
)
Transfers
—

 
—

 
—

Settlements
(515
)
 
(255
)
 
(770
)
Ending balance, September 30
$
4,210

 
$
11,511

 
$
15,721

 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Year Ended December 31, 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
 
—

 
(268
)
 
(268
)
Purchases
 
—

 
—

 
—

Settlements
 
(1,175
)
 
(160
)
 
(1,335
)
Ending balance, December 31
 
$
4,725

 
$
14,875

 
$
19,600
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, 2016.
 
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
4,210

 
Discounted cash flow
 
Discount rate
Probability of default
 
3.05%-5.50% 0%
Other real estate  
 
$
2,772

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
$
1,925

 
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, 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  
 
$
3,466

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
2,352

 
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, and carried at fair value on a non-recuring basis, as of September 30, 2016 and December 31, 2015, which are all considered Level 3.
 
 
September 30, 2016
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
966

 
$
226

 
$
740

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
701

 
193

 
508

Agriculture
 
571

 
329

 
242

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
544

 
109

 
435

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
2,782

 
$
857

 
$
1,925

 
 
December 31, 2015
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
998

 
$
212

 
$
786

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
1,415

 
741

 
674

Agriculture
 
—

 
—

 
—

All Other Commercial
 
225

 
—

 
225

Residential
 
 

 
 

 
 

First Liens
 
873

 
206

 
667

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
3,511

 
$
1,159

 
$
2,352
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, 2016
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
67,396

 
$
19,833

 
$
47,563

 
$
—

 
$
67,396

Federal funds sold
 
44,505

 
—

 
44,505

 
—

 
44,505

Securities available-for-sale
 
866,701

 
—

 
850,980

 
15,721

 
866,701

Restricted stock
 
10,848

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,802,451

 
—

 
—

 
1,865,027

 
1,865,027

Accrued interest receivable
 
12,846

 
—

 
3,787

 
9,059

 
12,846

Deposits
 
(2,479,241
)
 
—

 
(2,480,499
)
 
—

 
(2,480,499
)
Short-term borrowings
 
(31,370
)
 
—

 
(31,370
)
 
—

 
(31,370
)
Federal Home Loan Bank advances
 
(10,132
)
 
—

 
(10,136
)
 
—

 
(10,136
)
Accrued interest payable
 
(378
)
 
—

 
(378
)
 
—

 
(378
)
 
 
December 31, 2015
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
88,695

 
$
19,715

 
$
68,980

 
$
—

 
$
88,695

Federal funds sold
 
9,815

 
—

 
9,815

 
—

 
9,815

Securities available-for-sale
 
891,082

 
—

 
871,482

 
19,600

 
891,082

Restricted stock
 
10,838

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,743,862

 
—

 
—

 
1,789,938

 
1,789,938

Accrued interest receivable
 
11,733

 
—

 
3,366

 
8,367

 
11,733

Deposits
 
(2,442,369
)
 
—

 
(2,442,612
)
 
—

 
(2,442,612
)
Short-term borrowings
 
(33,831
)
 
—

 
(33,831
)
 
—

 
(33,831
)
Federal Home Loan Bank advances
 
(12,677
)
 
—

 
(12,971
)
 
—

 
(12,971
)
Accrued interest payable
 
(389
)
 
—

 
(389
)
 
—

 
(389
)