Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on recurring basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016:

(dollars in thousands)	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total (Fair Value)
December 31, 2017
Assets:
Investment securities available for sale:
U. S. agency securities	$	—	$	195,984	$	—	$	195,984
Residential mortgage backed securities	—		317,836		—		317,836
Municipal bonds	—		62,057		—		62,057
Corporate bonds	—		11,673		1,500		13,173
Other equity investments	—		—		218		218
Loans held for sale	—		25,096		—		25,096
Mortgage banking derivatives	—		—		43		43
Interest rate swap derivatives	—		2,256		—		2,256
Total assets measured at fair value on a recurring basis as of December 31, 2017	$	—	$	614,902	$	1,761	$	616,663
Liabilities:
Mortgage banking derivatives	$	—	$	—	$	10	$	10
Interest rate swap derivatives	—		—		—		—
Total liabilities measured at fair value on a recurring basis as of December 31, 2017	$	—	$	—	$	10	$	10
December 31, 2016
Assets:
Investment securities available for sale:
U. S. agency securities	$	—	$	106,142	$	—	$	106,142
Residential mortgage backed securities	—		326,239		—		326,239
Municipal bonds	—		95,930		—		95,930
Corporate bonds	—		8,079		1,500		9,579
Other equity investments	—		—		218		218
Loans held for sale	—		51,629		—		51,629
Mortgage banking derivatives	—		—		114		114
Total assets measured at fair value on a recurring basis as of December 31, 2016	$	—	$	588,019	$	1,832	$	589,851
Liabilities:
Mortgage banking derivatives	$	—	$	—	$	55	$	55
Interest rate swap derivatives	—		692		—		692
Total liabilities measured at fair value on a recurring basis as of December 31, 2016	$	—	$	692	$	55	$	747

Schedule of the aggregate fair value and the aggregate unpaid principal balance for residential real estate loans

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value as of December 31, 2017 and December 31, 2016.

	December 31, 2017
			Aggregate Unpaid
(dollars in thousands)	Fair Value		Principal Balance		Difference
Residential mortgage loans held for sale	$	25,096	$	24,674	$	422
FHA mortgage loans held for sale	$	—	$	—	$	—

	December 31, 2016
			Aggregate Unpaid
(dollars in thousands)	Fair Value		Principal Balance		Difference
Residential mortgage loans held for sale	$	51,629	$	51,021	$	608
FHA mortgage loans held for sale	$	—	$	—	$	—

Schedule of reconciliation of activity of siginificant unobservable inputs (Level 3)

The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3):

	Investment		Mortgage Banking
(dollars in thousands)	Securities		Derivatives			Total
Assets:
Beginning balance at January 1, 2017	$	1,718	$	114		$	1,832
Realized loss included in earnings - net mortgage banking derivatives	—		(71		)	(71		)
Purchases of available-for-sale securities	—		—			—
Principal redemption	—		—			—
Ending balance at December 31, 2017	$	1,718	$	43		$	1,761
Liabilities:
Beginning balance at January 1, 2017	$	—	$	55		$	55
Realized loss included in earnings - net mortgage banking derivatives	—		(45		)	(45		)
Principal redemption	—		—			—
Ending balance at December 31, 2017	$	—	$	10		$	10

	Investment			Mortgage Banking
(dollars in thousands)	Securities			Derivatives		Total
Assets:
Beginning balance at January 1, 2016	$	219		$	24	$	243
Realized gain included in earnings - net mortgage banking derivatives	—			90		90
Purchases of available-for-sale securities	1,500			—		1,500
Principal redemption	(1		)	—		(1		)
Ending balance at December 31, 2016	$	1,718		$	114	$	1,832
Liabilities:
Beginning balance at January 1, 2016	$	—		$	30	$	30
Realized loss included in earnings - net mortgage banking derivatives	—			25		25
Principal redemption	—			—		—
Ending balance at December 31, 2016	$	—		$	55	$	55

Schedule of assets measured at fair value on nonrecurring basis

Assets measured at fair value on a nonrecurring basis are included in the table below:

(dollars in thousands)	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total (Fair Value)
December 31, 2017
Impaired loans:
Commercial	$	—	$	—	$	2,266	$	2,266
Income producing - commercial real estate	—		—		7,664		7,664
Owner occupied - commercial real estate	—		—		5,214		5,214
Real estate mortgage - residential	—		—		775		775
Construction - commercial and residential	—		—		1,552		1,552
Home equity	—		—		494		494
Other consumer	—		—		11		11
Other real estate owned	—		—		1,394		1,394
Total assets measured at fair value on a nonrecurring basis as of December 31, 2017	$	—	$	—	$	19,370	$	19,370

(dollars in thousands)	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total (Fair Value)
December 31, 2016
Impaired loans:
Commercial	$	—	$	—	$	2,956	$	2,956
Income producing - commercial real estate	—		—		12,993		12,993
Owner occupied - commercial real estate	—		—		2,133		2,133
Real estate mortgage - residential	—		—		555		555
Construction - commercial and residential	—		—		1,550		1,550
Other consumer	—		—		13		13
Other real estate owned	—		—		2,694		2,694
Total assets measured at fair value on a nonrecurring basis as of December 31, 2016	$	—	$	—	$	22,894	$	22,894

Schedule of estimated fair values of financial instruments

The estimated fair values of the Company’s financial instruments at December 31, 2017 and 2016 are as follows:

					Fair Value Measurements
					Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2017
Assets
Cash and due from banks	$	7,445	$	7,445	$	—	$	7,445	$	—
Federal funds sold	15,767		15,767		—		15,767		—
Interest bearing deposits with other banks	167,261		167,261		—		167,261		—
Investment securities	589,268		589,268		—		587,550		1,718
Federal Reserve and Federal Home Loan Bank stock	36,324		36,324		—		36,324		—
Loans held for sale	25,096		25,096		—		25,096		—
Loans, net	6,346,770		6,381,213		—		—		6,381,213
Bank owned life insurance	60,947		60,947		—		60,947		—
Annuity investment	11,632		11,632		—		11,632		—
Mortgage banking derivatives	43		43		—		—		43
Interst rate swap derivatives	2,256		2,256		—		2,256		—
Liabilities
Noninterest bearing deposits	1,982,912		1,982,912		—		1,982,912		—
Interest bearing deposits	3,041,563		3,041,563		—		3,041,563		—
Certificates of deposit	829,509		829,886		—		829,886		—
Customer repurchase agreements	76,561		76,561		—		76,561		—
Borrowings	541,905		533,162		—		533,162		—
Mortgage banking derivatives	10		10		—		—		10
December 31, 2016
Assets
Cash and due from banks	$	8,076	$	8,076	$	—	$	8,076	$	—
Federal funds sold	2,397		2,397		—		2,397		—
Interest bearing deposits with other banks	357,690		357,690		—		357,690		—
Investment securities	538,108		538,108		—		536,390		1,718
Federal Reserve and Federal Home Loan Bank stock	21,600		21,600		—		21,600		—
Loans held for sale	51,629		51,629		—		51,629		—
Loans, net	5,618,819		5,624,084		—		—		5,624,084
Bank owned life insurance	60,130		60,130		—		60,130		—
Annuity investment	11,929		11,929		—		11,929		—
Mortgage banking derivatives	114		114		—		—		114
Liabilities
Noninterest bearing deposits	1,775,684		1,775,684		—		1,775,684		—
Interest bearing deposits	3,191,682		3,191,682		—		3,191,682		—
Certificates of deposit	748,748		745,985		—		745,985		—
Customer repurchase agreements	68,876		68,876		—		68,876		—
Borrowings	216,514		203,657		—		203,657		—
Mortgage banking derivatives	55		55		—		—		55
Interest rate swap derivatives	692		692		—		692		—