Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis

The results of the fair value hierarchy as of December 31, 2017, are as follows:

	Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	1,984	$	—	$	1,984	$	—
U.S. Government Agency Sponsored Enterprises		—		—		—		—
SBA Backed Securities		80,950		—		80,950		—
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		225,775		—		225,775		—
Privately Issued Residential Mortgage-Backed Securities		892		—		892		—
Obligations Issued by States and Political Subdivisions		82,600		—		—		82,600
Other Debt Securities		4,971		—		4,971		—
Equity Securities		303		303		—		—
Total	$	397,475	$	303	$	314,572	$	82,600
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	246	$	—	$	—	$	246

The results of the fair value hierarchy as of December 31, 2016, are as follows:

	Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	2,000	$	—	$	2,000	$	—
U.S. Government Agency Sponsored Enterprises		24,952		—		24,952		—
BA Backed Securities		57,767		—		57,767		—
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		243,325		—		243,325		—
Privately Issued Residential Mortgage-Backed Securities		1,109		—		1,109		—
Obligations Issued by States and Political Subdivisions		164,876		—		—		164,876
Other Debt Securities		4,924		—		4,924		—
Equity Securities		344		344		—		—
Total	$	499,297	$	344	$	334,077	$	164,876
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	260	$	—	$	—	$	260

Assets Measured at Fair Value

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2017. Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS(1)	$	82,600	Discounted cash flow	Discount rate	1.0%-3.5%(2)
Impaired Loans		246	Appraisal of collateral(3)	Appraisal adjustments(4)	0%-30% discount

(1) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

(2) Weighted averages.

(3) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(4) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

The changes in Level 3 securities for the year ended December 31, 2017 are as shown in the table below:

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2016. Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS(1)	$	164,876	Discounted cash flow	Discount rate	0%-1%(2)
Impaired Loans		260	Appraisal of collateral(3)	Appraisal adjustments (4)	0%-30% discount

⁽¹⁾  Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

⁽²⁾  Weighted averages.

⁽³⁾ Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

⁽⁴⁾  Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

Changes in Level 3 Securities

The changes in Level 3 securities for the year ended December 31, 2017 are as shown in the table below:

	Auction Rate Securities		Obligations Issued by States and Political Subdivisions			Equity Securities		Total
(dollars in thousands)
Balance at December 31, 2016	$	4,298	$	160,578		$	—	$	164,876
Purchases		—		99,136			—		99,136
Maturities/redemptions		—		(181,394	)		—		(181,394	)
Amortization		—		(179	)		—		(179	)
Change in fair value		161		—			—		161
Balance at December 31, 2017	$	4,459	$	78,141		$	—	$	82,600

The changes in Level 3 securities for the year ended December 31, 2016 are as shown in the table below:

	Auction Rate Securities		Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2015	$	3,820	$	153,140		$	37		$	156,997
Purchases		—		216,646			—			216,646
Maturities/redemptions		—		(208,990	)		(37	)		(209,027	)
Amortization		—		(218	)		—			(218	)
Change in fair value		478		—			—			478
Balance at December 31, 2016	$	4,298	$	160,578		$	—		$	164,876