FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2020

FAIR VALUE

Schedule of Assets Measured at Fair Value on a Recurring Basis

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

	December 31, 2020
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
U.S. government sponsored agency securities	$	—	$	36,487	$	—	$	36,487
Mortgage-backed securities: residential		—		279,503		—		279,503
Mortgage-backed securities: commercial		—		36,881		—		36,881
State and municipal securities		—		381,834		140		381,974
Total Securities		—		734,705		140		734,845
Mortgage banking derivative		—		1,182		—		1,182
Interest rate swap derivative		—		21,764		—		21,764
Total assets	$	—	$	757,651	$	140	$	757,791
Liabilities:
Mortgage banking derivative		—		111		—		111
Interest rate swap derivative		—		21,794		—		21,794
Total liabilities	$	—	$	21,905	$	—	$	21,905

	December 31, 2019
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets:
Mortgage-backed securities: residential	$	—	$	288,181	$	—	$	288,181
Mortgage-backed securities: commercial		—		36,972		—		36,972
State and municipal securities		—		282,935		145		283,080
Total Securities		—		608,088		145		608,233
Mortgage banking derivative		—		198		—		198
Interest rate swap derivative		—		7,263		—		7,263
Total assets	$	—	$	615,549	$	145	$	615,694
Liabilities:
Mortgage banking derivative		—		14		—		14
Interest rate swap derivative		—		7,860		—		7,860
Total liabilities	$	—	$	7,874	$	—	$	7,874

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis

The tables below present the amount of assets measured at fair value on a nonrecurring basis:

	December 31, 2020
	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	$	—	$	—	$	178	$	178
Non-working capital loans		—		—		4,904		4,904
Commercial real estate and multi-family residential loans:
Owner occupied loans		—		—		1,211		1,211
Agri-business and agricultural loans:
Loans secured by farmland		—		—		61		61
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		—		—		411		411
Total impaired loans	$	—	$	—	$	6,765	$	6,765
Other real estate owned		—		—		0		—
Total assets	$	—	$	—	$	6,765	$	6,765

	December 31, 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	$	—	$	—	$	3,125	$	3,125
Non-working capital loans		—		—		6,374		6,374
Commercial real estate and multi-family residential loans:
Construction and land development loans		—		—		43		43
Owner occupied loans		—		—		1,450		1,450
Agri-business and agricultural loans:
Loans secured by farmland		—		—		57		57
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		—		—		474		474
Open end and junior lien loans		—		—		587		587
Other consumer loans		—		—		11		11
Total impaired loans	$	—	$	—	$	12,121	$	12,121
Other real estate owned		—		—		—		—
Total assets	$	—	$	—	$	12,121	$	12,121

Schedule of 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 December 31, 2020:

(dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Average		Range of Inputs
Impaired loans:
Commercial and industrial	$	5,082	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	55	%	16%-100%
Impaired loans:
Commercial real estate		1,211	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	53	%	21%-74%
Impaired loans:
Agribusiness and agricultural		61	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	58	%
Impaired loans:
Consumer 1-4 family mortgage		411	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	11	%	10%-15%

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, 2019:

(dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Average		Range of Inputs
Impaired loans:
Commercial and industrial	$	9,499	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	53	%	1%-100%
Impaired loans:
Commercial real estate		1,493	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	27	%	7%-61%
Impaired loans:
Agribusiness and agricultural		57	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	61	%
Impaired loans:
Consumer 1-4 family mortgage		1,061	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	14	%	5%-100%
Impaired loans:
Other consumer		11	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	36	%

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 at December 31, 2020. Items which are not financial instruments are not included.

	December 31, 2020
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	249,927	$	247,228	$	2,699	$	—	$	249,927
Securities available-for-sale		734,845		—		734,705		140		734,845
Real estate mortgages held-for-sale		11,218		—		11,651		—		11,651
Loans, net		4,587,748		—		—		4,532,639		4,532,639
Mortgage banking derivative		1,182		—		1,182		—		1,182
Interest rate swap derivative		21,764		—		21,764		—		21,764
Federal Reserve and Federal Home Loan Bank Stock		13,772		N/A		N/A		N/A		N/A
Accrued interest receivable		18,761		—		3,801		14,960		18,761
Financial Liabilities:
Certificates of deposit		(1,024,819)		—		(1,033,095)		—		(1,033,095)
All other deposits		(4,011,986)		(4,011,986)		—		—		(4,011,986)
Miscellaneous borrowings		(10,500)		—		(10,500)		—		(10,500)
Federal Home Loan Bank advances		(75,000)		—		(68,967)		—		(68,967)
Mortgage banking derivative		(111)		—		(111)		—		(111)
Interest rate swap derivative		(21,794)		—		(21,794)		—		(21,794)
Standby letters of credit		(686)		—		—		(686)		(686)
Accrued interest payable		(5,959)		(66)		(5,893)		—		(5,959)

The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments at December 31, 2019. Items which are not financial instruments are not included.

	December 31, 2019
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	99,381	$	96,603	$	2,778	$	—	$	99,381
Securities available-for-sale		608,233		—		608,088		145		608,233
Real estate mortgages held-for-sale		4,527		—		4,614		—		4,614
Loans, net		4,015,176		—		—		3,979,006		3,979,006
Mortgage banking derivative		198		—		198		—		198
Interest rate swap derivative		7,263		—		7,263		—		7,263
Federal Reserve and Federal Home Loan Bank Stock		13,772		N/A		N/A		N/A		N/A
Accrued interest receivable		15,391		—		3,729		11,662		15,391
Financial Liabilities:
Certificates of deposit		(1,192,067)		—		(1,202,060)		—		(1,202,060)
All other deposits		(2,941,752)		(2,941,752)		—		—		(2,941,752)
Federal Home Loan Bank advances		(170,000)		—		(169,998)		—		(169,998)
Mortgage banking derivative		(14)		—		(14)		—		(14)
Interest rate swap derivative		(7,860)		—		(7,860)		—		(7,860)
Standby letters of credit		(915)		—		—		(915)		(915)
Accrued interest payable		(11,604)		(102)		(11,502)		—		(11,604)