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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017.

 

(dollars in thousands)   Quoted Prices
(Level 1)		     Significant Other
Observable Inputs
(Level 2)		     Significant Other
Unobservable
Inputs (Level 3)		     Total
(Fair Value)		  
September 30, 2018                                
Assets:                                
Investment securities available for sale:                                
U. S. agency securities   $ —     $ 230,325     $ —     $ 230,325  
Residential mortgage backed securities     —       436,349       —       436,349  
Municipal bonds     —       47,736       —       47,736  
Corporate bonds     —       6,546       1,500       8,046  
Other equity investments     —       —       218       218  
Loans held for sale     —       18,728       —       18,728  
Mortgage banking derivatives     —       —       80       80  
Interest rate swap derivatives     —       6,427       —       6,427  
Total assets measured at fair value on a recurring basis as of September 30, 2018   $ —     $ 746,111     $ 1,798     $ 747,909  
Liabilities:                                
Mortgage banking derivatives   $ —     $ —     $ 28     $ 28  
Total liabilities measured at fair value on a recurring basis as of September 30, 2018   $ —     $ —     $ 28     $ 28  
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  
Total liabilities measured at fair value on a recurring basis as of December 31, 2017   $ —     $ —     $ 10     $ 10  

 
Schedule of aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value

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 September 30, 2018 and December 31, 2017.

 

    September 30, 2018  
          Aggregate Unpaid        
(dollars in thousands)   Fair Value   Principal Balance   Difference  
                     
Residential mortgage loans held for sale   $ 18,728   $ 18,488   $ 240  
FHA mortgage loans held for sale   $ —   $ —   $ —  

 

    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   $ —   $ —   $ —  
Schedule of the reconciliation of activity for assets and liabilities measured at fair value based on Significant Other 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, 2018   $ 1,718     $ 43     $ 1,761  
Realized gain included in earnings - net mortgage banking derivatives     —       37       37  
    Purchases of available-for-sale securities     —       —       —  
    Principal redemption     —       —       —  
Ending balance at September 30, 2018   $ 1,718     $ 80     $ 1,798  
                         
Liabilities:                        
Beginning balance at January 1, 2018   $ —     $ 10     $ 10  
Realized loss included in earnings - net mortgage banking derivatives     —       18       18  
    Principal redemption     —       —       —  
Ending balance at September 30, 2018   $ —     $ 28     $ 28  

 

    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  
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)		  
September 30, 2018                                
Impaired loans:                                
Commercial   $ —     $ —     $ 6,200     $ 6,200  
Income producing - commercial real estate     —       —       6,217       6,217  
Owner occupied - commercial real estate     —       —       5,261       5,261  
Real estate mortgage - residential     —       —       1,522       1,522  
Construction - commercial and residential                     3,030       3,030  
Home equity     —       —       487       487  
Other consumer     —       —       36       36  
Other real estate owned     —       —       1,394       1,394  
Total assets measured at fair value on  a nonrecurring basis as of September 30, 2018   $ —     $ —     $ 24,147     $ 24,147  

 

(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  
Schedule of estimated fair values of financial instruments

The estimated fair values of the Company’s financial instruments at September 30, 2018 and December 31, 2017 are as follows:

 

                Fair Value Measurements  
(dollars in thousands)   Carrying Value     Fair Value    

Quoted
Prices

(Level 1) 

    

Significant
Other
Observable
Inputs

(Level 2)

    

Significant 
Unobservable
Inputs 

(Level 3)

  
September 30, 2018                                        
Assets                                        
Cash and due from banks   $ 4,459     $ 4,459     $ —     $ 4,459     $ —  
Federal funds sold     17,284       17,284       —       17,284       —  
Interest bearing deposits with other banks     162,734       162,734       —       162,734       —  
Investment securities     722,674       722,674       —       720,956       1,718  
Federal Reserve and Federal Home Loan Bank stock     37,257       37,257       —       37,257       —  
Loans held for sale     18,728       18,728       —       18,728       —  
Loans (1)     6,776,483       6,713,861       —       —       6,713,861  
Bank owned life insurance     73,007       73,007       —       73,007       —  
Annuity investment     12,375       12,375       —       12,375       —  
Mortgage banking derivatives     80       80       —       —       80  
Interst rate swap derivatives     6,427       6,427       —       6,427       —  
                                         
Liabilities                                        
Noninterest bearing deposits     2,057,886       2,057,886       —       2,057,886       —  
Interest bearing deposits     3,032,713       3,032,713       —       3,032,713       —  
Certificates of deposit     1,281,706       1,279,407       —       1,279,407       —  
Customer repurchase agreements     36,446       36,446       —       36,446       —  
Borrowings     542,198       533,304       —       533,304       —  
Mortgage banking derivatives     28       28       —       —       28  
                                         
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 (2)     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  

 

  (1) Carrying amount is net of unearned income and the allowance for credit losses. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans was measured using an exit price notion.

  (2) Carrying amount is net of unearned income and the allowance for credit losses. The fair value of loans was measured using an entry price notion.