Fair Value (Tables)
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9 Months Ended |
Sep. 30, 2020 |
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| Fair Value Disclosures [Abstract] |
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| 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, 2020 | | | Fair Value Measurements Using Significant
Unobservable Inputs (Level 3) | | (Dollar amounts in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | | U.S. Government agencies | | $ | — | | | $ | 100,350 | | | $ | — | | | $ | 100,350 | | | Mortgage Backed Securities-residential | | — | | | 284,610 | | | — | | | 284,610 | | | Mortgage Backed Securities-commercial | | — | | | 18,680 | | | — | | | 18,680 | | | Collateralized mortgage obligations | | — | | | 231,568 | | | — | | | 231,568 | | | State and municipal | | — | | | 292,519 | | | 2,235 | | | 294,754 | | | Municipal taxable | | — | | | 20,727 | | | — | | | 20,727 | | | U.S. Treasury | | — | | | 2,514 | | | — | | | 2,514 | | | Collateralized debt obligations | | — | | | — | | | 3,036 | | | 3,036 | | | TOTAL | | $ | — | | | $ | 950,968 | | | $ | 5,271 | | | $ | 956,239 | | | Derivative Assets | | | | 2,723 | | | | | | | Derivative Liabilities | | | | (2,723) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | | Fair Value Measurements Using Significant
Unobservable Inputs (Level 3) | | (Dollar amounts in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | | U.S. Government agencies | | $ | — | | | $ | 103,633 | | | $ | — | | | $ | 103,633 | | | Mortgage Backed Securities-residential | | — | | | 243,382 | | | — | | | 243,382 | | | Mortgage Backed Securities-commercial | | — | | | 22,104 | | | — | | | 22,104 | | | Collateralized mortgage obligations | | — | | | 281,311 | | | — | | | 281,311 | | | State and municipal | | — | | | 261,869 | | | 2,565 | | | 264,434 | | | Municipal taxable | | — | | | 730 | | | — | | | 730 | | | U.S. Treasury | | — | | | 7,504 | | | — | | | 7,504 | | | Collateralized debt obligations | | — | | | — | | | 3,619 | | | 3,619 | | | TOTAL | | $ | — | | | $ | 920,533 | | | $ | 6,184 | | | $ | 926,717 | | | Derivative Assets | | | | 828 | | | | | | | Derivative Liabilities | | | | (828) | | | | | |
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| 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, 2020 and the year ended December 31, 2019. | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | Three Months Ended September 30, 2020 | | (Dollar amounts in thousands) | State and
municipal
obligations | | Collateralized
debt
obligations | | Total | | Beginning balance, July1 | $ | 2,235 | | | $ | 2,945 | | | $ | 5,180 | | | Total realized/unrealized gains or losses | | | | | | | Included in earnings | — | | | — | | | — | | | Included in other comprehensive income | — | | | 91 | | | 91 | | | Transfers | — | | | — | | | — | | | Settlements | — | | | — | | | — | | | Ending balance, September 30 | $ | 2,235 | | | $ | 3,036 | | | $ | 5,271 | |
| | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2020 | | (Dollar amounts in thousands) | State and
municipal
obligations | | Collateralized
debt
obligations | | Total | | Beginning balance, January 1 | $ | 2,565 | | | $ | 3,619 | | | $ | 6,184 | | | Total realized/unrealized gains or losses | | | | | | | Included in earnings | — | | | — | | | — | | | Included in other comprehensive income | — | | | (583) | | | (583) | | | Transfers | — | | | — | | | — | | | Settlements | (330) | | | — | | | (330) | | | Ending balance, September 30 | $ | 2,235 | | | $ | 3,036 | | | $ | 5,271 | |
| | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | | | Year Ended December 31, 2019 | | (Dollar amounts in thousands) | | State and
municipal
obligations | | Collateralized
debt
obligations | | Total | | Beginning balance, January 1 | | $ | 3,135 | | | $ | 3,258 | | | $ | 6,393 | | | Total realized/unrealized gains or losses | | | | | | | | Included in earnings | | — | | | — | | | — | | | Included in other comprehensive income | | — | | | 498 | | | 498 | | | Purchases | | — | | | — | | | — | | | Settlements | | (570) | | | (137) | | | (707) | | | Ending balance, December 31 | | $ | 2,565 | | | $ | 3,619 | | | $ | 6,184 | |
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| 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, 2020. | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollar amounts in thousands) | | Fair Value | | Valuation Technique(s) | | Unobservable Input(s) | | Range | | State and municipal obligations | | $ | 2,235 | | | Discounted cash flow | | Discount rate
Probability of default | | 3.09%-4.44%
0% | | Other real estate | | $ | 3,465 | | | Sales comparison/income approach | | Discount rate for age of appraisal and market conditions | | 5.00%-20.00% | | Impaired Loans | | $ | 4,749 | | | 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, 2019. | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollar amounts in thousands) | | Fair Value | | Valuation Technique(s) | | Unobservable Input(s) | | Range | | State and municipal obligations | | $ | 2,565 | | | Discounted cash flow | | Discount rate
Probability of default | | 2.87%-4.44%
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 | | 100 | | | Sales comparison/income approach | | Discount rate for age of appraisal and market conditions | | 0.00%-50.00% |
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| 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-recurring basis, as of September 30, 2020 and December 31, 2019, which are all considered Level 3. | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2020 | | (Dollar amounts in thousands) | | Carrying
Value | | Allowance
for Loan
Losses
Allocated | | Fair Value | | Commercial | | | | | | | | Commercial & Industrial | | $ | 3,749 | | | $ | 1,054 | | | $ | 2,695 | | | Farmland | | — | | | — | | | — | | | Non Farm, Non Residential | | 171 | | | — | | | 171 | | | Agriculture | | 380 | | | 380 | | | — | | | All Other Commercial | | 754 | | | 251 | | | 503 | | | Residential | | | | | | | | First Liens | | — | | | — | | | — | | | Home Equity | | — | | | — | | | — | | | Junior Liens | | — | | | — | | | — | | | Multifamily | | 1,380 | | | — | | | 1,380 | | | All Other Residential | | — | | | — | | | — | | | Consumer | | | | | | | | Motor Vehicle | | — | | | — | | | — | | | All Other Consumer | | — | | | — | | | — | | | TOTAL | | $ | 6,434 | | | $ | 1,685 | | | $ | 4,749 | |
| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | (Dollar amounts in thousands) | | Carrying
Value | | Allowance
for Loan
Losses
Allocated | | Fair Value | | Commercial | | | | | | | | Commercial & Industrial | | $ | 148 | | | $ | 48 | | | $ | 100 | | | 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 | | $ | 148 | | | $ | 48 | | | $ | 100 | |
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| 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, 2020 | | | | Carrying | | Fair Value | | (Dollar amounts in thousands) | | Value | | Level 1 | | Level 2 | | Level 3 | | Total | | Cash and due from banks | | $ | 388,440 | | | $ | 25,428 | | | $ | 363,012 | | | $ | — | | | $ | 388,440 | | | Federal funds sold | | — | | | — | | | — | | | — | | | — | | | Securities available-for-sale | | 956,239 | | | — | | | 950,968 | | | 5,271 | | | 956,239 | | | Restricted stock | | 15,012 | | | n/a | | n/a | | n/a | | n/a | | Loans, net | | 2,726,533 | | | — | | | — | | | 2,787,631 | | | 2,787,631 | | | Accrued interest receivable | | 18,482 | | | — | | | 5,007 | | | 13,475 | | | 18,482 | | | Deposits | | (3,604,353) | | | — | | | (3,615,014) | | | — | | | (3,615,014) | | | Short-term borrowings | | (95,249) | | | — | | | (95,249) | | | — | | | (95,249) | | | Other borrowings | | (10,845) | | | — | | | (11,237) | | | — | | | (11,237) | | | Accrued interest payable | | (1,107) | | | — | | | (1,107) | | | — | | | (1,107) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | | | Carrying | | Fair Value | | (Dollar amounts in thousands) | | Value | | Level 1 | | Level 2 | | Level 3 | | Total | | Cash and due from banks | | $ | 127,426 | | | $ | 26,275 | | | $ | 101,151 | | | $ | — | | | $ | 127,426 | | | Federal funds sold | | 7,500 | | | — | | | 7,500 | | | — | | | 7,500 | | | Securities available-for-sale | | 926,717 | | | — | | | 920,533 | | | 6,184 | | | 926,717 | | | Restricted stock | | 15,394 | | | n/a | | n/a | | n/a | | n/a | | Loans, net | | 2,636,447 | | | — | | | — | | | 2,648,692 | | | 2,648,692 | | | Accrued interest receivable | | 18,523 | | | — | | | 3,583 | | | 14,940 | | | 18,523 | | | Deposits | | (3,275,357) | | | — | | | (3,278,099) | | | — | | | (3,278,099) | | | Short-term borrowings | | (80,119) | | | — | | | (80,119) | | | — | | | (80,119) | | | Other borrowings | | (30,973) | | | — | | | (31,143) | | | — | | | (31,143) | | | Accrued interest payable | | (1,739) | | | — | | | (1,739) | | | — | | | (1,739) | |
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