FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2019

FAIR VALUE DISCLOSURES

Schedule of Assets Measured at Fair Value on a Recurring Basis

The table below presents the balances of assets measured at fair value on a recurring basis:

	September 30, 2019
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
U.S. Treasury securities	$	1,007	$	0	$	0	$	1,007
U.S. government sponsored agency securities		0		2,308		0		2,308
Mortgage-backed securities: residential		0		296,232		0		296,232
Mortgage-backed securities: commercial		0		37,669		0		37,669
State and municipal securities		0		275,864		150		276,014
Total Securities		1,007		612,073		150		613,230
Mortgage banking derivative		0		393		0		393
Interest rate swap derivative		0		8,992		0		8,992
Total assets	$	1,007	$	621,458	$	150	$	622,615
Liabilities
Mortgage banking derivative		0		10		0		10
Interest rate swap derivative		0		9,802		0		9,802
Total liabilities	$	0	$	9,812	$	0	$	9,812

	December 31, 2018
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
U.S. Treasury securities	$	987	$	0	$	0	$	987
U.S. government sponsored agency securities		0		4,350		0		4,350
Mortgage-backed securities: residential		0		325,412		0		325,412
Mortgage-backed securities: commercial		0		38,141		0		38,141
State and municipal securities		0		216,509		150		216,659
Total Securities		987		584,412		150		585,549
Mortgage banking derivative		0		95		0		95
Interest rate swap derivative		0		3,869		0		3,869
Total assets	$	987	$	588,376	$	150	$	589,513
Liabilities
Mortgage banking derivative		0		23		0		23
Interest rate swap derivative		0		4,025		0		4,025
Total liabilities	$	0	$	4,048	$	0	$	4,048

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis

The fair value of Level 3 available for sale securities was immaterial to warrant additional recurring fair value disclosure.

The table below presents the balances of assets measured at fair value on a nonrecurring basis:

	September 30, 2019
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Impaired loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	3,152	$	3,152
Non-working capital loans		0		0		5,103		5,103
Commercial real estate and multi-family residential loans:
Owner occupied loans		0		0		973		973
Agri-business and agricultural loans:
Loans secured by farmland		0		0		57		57
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		0		0		457		457
Open end and junior lien loans		0		0		587		587
Total impaired loans	$	0	$	0	$	10,329	$	10,329
Other real estate owned		0		0		0		0
Total assets	$	0	$	0	$	10,329	$	10,329

	December 31, 2018
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Impaired loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	4,092	$	4,092
Non-working capital loans		0		0		4,967		4,967
Commercial real estate and multi-family residential loans:
Construction and land development loans		0		0		148		148
Owner occupied loans		0		0		1,669		1,669
Agri-business and agricultural loans:
Loans secured by farmland		0		0		77		77
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		0		0		553		553
Total impaired loans	$	0	$	0	$	11,506	$	11,506
Other real estate owned		0		0		316		316
Total assets	$	0	$	0	$	11,822	$	11,822

Fair Value Measured On Nonrecurring Basis Valuation Techniques

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2019:

(dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Average		Range of Inputs
Impaired loans:
Commercial and industrial	$	8,255	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	53	%	1	%	-	100	%
Impaired loans:
Commercial real estate		973	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	42	%	30	%	-	100	%
Impaired loans:
Agri-business and agricultural		57	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	61	%
Impaired loans:
Consumer 1‑4 family mortgage		1,044	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	13	%	5	%	-	100	%

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2018:

(dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Average		Range of Inputs
Impaired loans:
Commercial and industrial	$	9,059	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	48	%	4	%	-	100	%
Impaired loans:
Commercial real estate		1,817	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	34	%	6	%	-	53	%
Impaired loans:
Agri-business and agricultural		77	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	49	%
Impaired loans:
Consumer 1‑4 family mortgage		553	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	23	%	0	%	-	64	%
Other real estate owned		316	Collateral based measurements	Discount to reflect current market conditions	0	%

Schedule of Fair Values and the Related Carrying Values of Financial Instruments

The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments. Items which are not financial instruments are not included.

	September 30, 2019
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	136,575	$	133,799	$	2,776	$	0	$	136,575
Securities available-for-sale		613,230		1,007		612,073		150		613,230
Real estate mortgages held-for-sale		7,424		0		7,506		0		7,506
Loans, net		3,972,593		0		0		3,933,560		3,933,560
Federal Reserve and Federal Home Loan Bank stock		13,772		N/A		N/A		N/A		N/A
Accrued interest receivable		15,823		8		3,373		12,442		15,823
Financial Liabilities:
Certificates of deposit		(1,383,366)		0		(1,394,467)		0		(1,394,467)
All other deposits		(2,900,024)		(2,900,024)		0		0		(2,900,024)
Subordinated debentures		(30,928)		0		0		(31,158)		(31,158)
Standby letters of credit		(926)		0		0		(926)		(926)
Accrued interest payable		(12,071)		(92)		(11,975)		(4)		(12,071)

	December 31, 2018
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	216,922	$	214,452	$	2,470	$	0	$	216,922
Securities available-for-sale		585,549		987		584,412		150		585,549
Real estate mortgages held-for-sale		2,293		0		2,314		0		2,314
Loans, net		3,866,292		0		0		3,786,175		3,786,175
Federal Reserve and Federal Home Loan Bank stock		13,772		N/A		N/A		N/A		N/A
Accrued interest receivable		15,518		3		3,569		11,946		15,518
Financial Liabilities:
Certificates of deposit		(1,419,754)		0		(1,424,553)		0		(1,424,553)
All other deposits		(2,624,311)		(2,624,311)		0		0		(2,624,311)
Securities sold under agreements to repurchase		(75,555)		0		(75,555)		0		(75,555)
Federal Home Loan Bank advances		(170,000)		0		(169,996)		0		(169,996)
Subordinated debentures		(30,928)		0		0		(31,195)		(31,195)
Standby letters of credit		(978)		0		0		(978)		(978)
Accrued interest payable		(10,404)		(110)		(10,289)		(5)		(10,404)