Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the fair value measurements of certain assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall (dollars in thousands):



	Recurring Basis Fair Value Measurements
	September 30, 2018
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
State. county, and municipal securities	$	22,759	$	—	$	22,759	$	—
Mortgage-backed securities	304,045		—		304,045		—
Mutual funds	1,994		1,994
Corporate debt securities	25,802		—		25,802		—
Derivative assets	$	1,513	$	—	$	1,513	$	—
Total recurring assets at fair value	$	356,113	$	1,994	$	354,119	$	—



	Recurring Basis Fair Value Measurements
	December 31, 2017
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
State, county, and municipal securities	$	22,809	$	—	$	22,809	$	—
Mortgage-backed securities	259,519		—		259,519		—
Mutual funds	2,061		2,061		—		—
Corporate debt securities	24,802		—		24,802		—
Derivative assets	$	1,078	$	—	$	1,078	$	—
Total recurring assets at fair value	$	310,269	$	2,061	$	308,208	$	—

Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table presents the fair value measurements of certain assets and liabilities measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall (dollars in thousands):



	Nonrecurring Basis Fair Value Measurements
	September 30, 2018
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
Impaired loans	$	10,611	$	—	$	—	$	10,611
Other real estate	1,022		—		—		1,022
Assets held for sale	1,372		—		1,372		—
Total nonrecurring assets at fair value	$	13,005	$	—	$	1,372	$	11,633
	Nonrecurring Basis Fair Value Measurements
	December 31, 2017
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
Impaired loans	$	10,227	$	—	$	—	$	10,227
Loans held for sale	15,737		—		15,737		—
Other real estate	2,001		—		—		2,001
Assets held for sale	3,572		—		3,572		—
Total nonrecurring assets at fair value	$	31,537	$	—	$	19,309	$	12,228

Schedule of Significant Observable Inputs Used in Fair Value Measurement of Level 3 Assets

The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets (dollars in thousands):



	Fair Value at
Description	September 30, 2018		Technique	Unobservable Inputs
Impaired loans	$	10,611	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	1,022		Third party appraisals	Collateral discounts and estimated costs to sell

	Fair Value at
Description	December 31, 2017		Technique	Unobservable Inputs
Impaired loans	$	10,227	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	2,001		Third party appraisals	Collateral discounts and estimated costs to sell

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are as follows at September 30, 2018 and December 31, 2017 (dollars in thousands):



	Fair Value Measurements
	September 30, 2018
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks, interest-bearing deposits in banks and federal funds sold	$	302,888	$	302,888	$	—	$	—
Available-for-sale securities	352,606				352,606
Securities held-to-maturity	64,893		—		63,581		—
Other investments	16,508		16,508		—		—
Loans, net	938,293		—		—		938,603
Cash surrender value of life insurance	15,071		—		15,071		—
Financial liabilities:
Non-interest-bearing deposits	425,696		—		425,696		—
Interest-bearing deposits	1,083,433		—		981,921		—
Securities sold under agreements to repurchase	13,676		13,676		—		—
FHLB borrowings	27,506		—		27,506		—
Other borrowings	22,167		—		22,167		—



	Fair Value Measurements
	December 31, 2017
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks, interest-bearing deposits in banks and federal funds sold	$	152,964	$	152,964	$	—	$	—
Available-for-sale securities	309,191		2,061		307,130
Securities held-to-maturity	81,052		—		80,920		—
Other investments	12,214		12,214		—		—
Loans, net	1,156,538		—		—		1,160,614
Cash surrender value of life insurance	14,896		—		14,896		—
Financial liabilities:
Non-interest-bearing deposits	416,547		—		416,547		—
Interest-bearing deposits	1,063,142		—		881,139		179,910
Securities sold under agreements to repurchase	67,133		67,133		—		—
FHLB borrowings	50,021		—		50,021		—
Other borrowings	22,167		—		22,167		—