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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2018
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, 2018
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
12,473

 
$
—

 
$
12,473

Mortgage Backed Securities-residential
 
—

 
184,651

 
—

 
184,651

Collateralized mortgage obligations
 
—

 
354,547

 
—

 
354,547

State and municipal
 
—

 
227,464

 
3,135

 
230,599

Collateralized debt obligations
 
—

 
—

 
3,423

 
3,423

TOTAL
 
$
—

 
$
779,135

 
$
6,558

 
$
785,693

Derivative Assets
 
 

 
687

 
 

 
 

Derivative Liabilities
 
 

 
(687
)
 
 

 
 

 
 
December 31, 2017
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
13,695

 
$
—

 
$
13,695

Mortgage Backed Securities-residential
 
—

 
215,338

 
—

 
215,338

Mortgage Backed Securities-commercial
 
—

 
1

 
—

 
1

Collateralized mortgage obligations
 
—

 
339,670

 
—

 
339,670

State and municipal
 
—

 
227,942

 
3,680

 
231,622

Collateralized debt obligations
 
—

 
—

 
14,605

 
14,605

TOTAL
 
$
—

 
$
796,646

 
$
18,285

 
$
814,931

Derivative Assets
 
 

 
298

 
 

 
 

Derivative Liabilities
 
 

 
(298
)
 
 

 
 
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, 2018 and the year ended December 31, 2017. 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Three Months Ended September 30, 2018
(Dollar amounts in thousands)
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, July 1
$
3,135

 
$
3,450

 
$
6,585

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
13

 
13

Transfers
—

 
—

 
—

Settlements
—

 
(40
)
 
(40
)
Ending balance, September 30
$
3,135

 
$
3,423

 
$
6,558

 
 
 
Nine Months Ended September 30, 2018
(Dollar amounts in thousands)
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
$
3,680

 
$
14,605

 
$
18,285

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
4,158

 
4,158

Transfers
—

 
—

 
—

Settlements
(545
)
 
(15,340
)
 
(15,885
)
Ending balance, September 30
$
3,135

 
$
3,423

 
$
6,558

 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Year Ended December 31, 2017
(Dollar amounts in thousands)
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
 
$
4,210

 
$
12,368

 
$
16,578

Total realized/unrealized gains or losses
 
 

 
 

 
 

Included in earnings
 
—

 
—

 
—

Included in other comprehensive income
 
—

 
2,773

 
2,773

Purchases
 
—

 
—

 
—

Settlements
 
(530
)
 
(536
)
 
(1,066
)
Ending balance, December 31
 
$
3,680

 
$
14,605

 
$
18,285
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, 2018.
(Dollar amounts in thousands)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
3,135

 
Discounted cash flow
 
Discount rate
Probability of default
 
2.64%-4.80% 0%
Other real estate  
 
$
520

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
$
140

 
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, 2017.
(Dollar amounts in thousands)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
3,680

 
Discounted cash flow
 
Discount rate
Probability of default
 
2.30%-5.45% 0%
Other real estate  
 
$
1,880

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
3,882

 
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, 2018 and December 31, 2017, which are all considered Level 3.
 
 
September 30, 2018
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
174

 
$
34

 
$
140

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
—

 
—

 
—

Agriculture
 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
—

 
—

 
—

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
174

 
$
34

 
$
140

 
 
December 31, 2017
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
493

 
$
146

 
$
347

Farmland
 
3,035

 
268

 
2,767

Non Farm, Non Residential
 
—

 
—

 
—

Agriculture
 
537

 
205

 
—

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
442

 
6

 
436

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
4,507

 
$
625

 
$
3,882
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, 2018
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
50,018

 
$
19,029

 
$
30,989

 
$
—

 
$
50,018

Federal funds sold
 
7,600

 
—

 
7,600

 
—

 
7,600

Securities available-for-sale
 
785,693

 
—

 
779,135

 
6,558

 
785,693

Restricted stock
 
10,390

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,921,479

 
—

 
—

 
1,874,643

 
1,874,643

Accrued interest receivable
 
14,630

 
—

 
4,070

 
10,560

 
14,630

Deposits
 
(2,407,061
)
 
—

 
(2,394,553
)
 
—

 
(2,394,553
)
Short-term borrowings
 
(58,680
)
 
—

 
(58,680
)
 
—

 
(58,680
)
Federal Home Loan Bank advances
 
(35,000
)
 
—

 
(35,000
)
 
—

 
(35,000
)
Accrued interest payable
 
(530
)
 
—

 
(530
)
 
—

 
(530
)
 
 
December 31, 2017
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
74,107

 
$
20,682

 
$
53,425

 
$
—

 
$
74,107

Securities available-for-sale
 
814,931

 
—

 
796,646

 
18,285

 
814,931

Restricted stock
 
10,379

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,886,852

 
—

 
—

 
1,878,166

 
1,878,166

Accrued interest receivable
 
12,913

 
—

 
3,596

 
9,317

 
12,913

Deposits
 
(2,458,653
)
 
—

 
(2,456,900
)
 
—

 
(2,456,900
)
Short-term borrowings
 
(57,686
)
 
—

 
(57,686
)
 
—

 
(57,686
)
Accrued interest payable
 
(372
)
 
—

 
(372
)
 
—

 
(372
)