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Fair Value (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized below:
(Dollars in thousands)TotalQuoted Prices
in Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
June 30, 2020    
Securities available for sale:    
U.S. government sponsored entities and agencies$7,253  $—  $7,253  $—  
State and political subdivision119,093  —  117,328  1,765  
Mortgage-backed securities: residential8,680  —  8,680  —  
Mortgage-backed securities: commercial8,696  —  8,696  —  
Collateralized mortgage obligations: residential7,402  —  7,402  —  
Collateralized mortgage obligations: commercial31,267  —  31,267  —  
U.S. Treasury1,006  —  1,006  —  
SBA19,490  —  19,490  —  
Asset backed securities9,771  —  9,771  —  
Corporate bonds4,514  —  4,514  —  
Total securities available for sale217,172  —  215,407  1,765  
Loans held for sale24,557  —  24,557  —  
Loans measured at fair value:
Residential real estate4,056  —  —  4,056  
Derivative assets:
Customer-initiated derivatives14,754  —  14,754  —  
Forward contracts related to mortgage loans to be delivered for sale79  —  79  —  
Interest rate lock commitments1,673  —  1,673  —  
Total assets at fair value$262,291  $—  $256,470  $5,821  
Derivative liabilities:
Customer-initiated derivatives14,754  —  14,754  —  
Forward contracts related to mortgage loans to be delivered for sale465  —  465  —  
Total liabilities at fair value$15,219  $—  $15,219  $—  
(Dollars in thousands)TotalQuoted Prices
in Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2019
Securities available for sale:
State and political subdivision$93,747  $—  $93,747  $—  
Mortgage-backed securities: residential10,565  —  10,565  —  
Mortgage-backed securities: commercial8,779  —  8,779  —  
Collateralized mortgage obligations: residential8,529  —  8,529  —  
Collateralized mortgage obligations: commercial23,181  —  23,181  —  
U.S. Treasury1,999  —  1,999  —  
SBA21,984  —  21,984  —  
Asset backed securities10,084  —  10,084  —  
Corporate bonds2,037  —  2,037  —  
Total securities available for sale$180,905  $—  $180,905  $—  
Loans held for sale13,889  —  13,889  —  
Loans measured at fair value:
Residential real estate4,063  —  —  4,063  
Derivative assets:
Customer-initiated derivatives4,684  —  4,684  —  
Forward contracts related to mortgage loans to be delivered for sale34  —  34  —  
Interest rate lock commitments256  —  256  —  
Total assets at fair value$203,831  $—  $199,768  $4,063  
Derivative liabilities:
Customer-initiated derivatives4,684  —  4,684  —  
Forward contracts related to mortgage loans to be delivered for sale33  —  33  —  
Total liabilities at fair value$4,717  $—  $4,717  $—  
Level 3 Rollforward
The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis.
For the three months ended June 30,For the six months ended June 30,
(Dollars in thousands)2020201920202019
Loans held for investment
Beginning balance$3,712  $4,650  $4,063  $4,571  
Transfers from loans held for sale776  1,190  816  1,429  
Gains (losses):
Recorded in "Mortgage banking activities"4  72  (3) 160  
Repayments(436) (288) (820) (536) 
Ending balance$4,056  $5,624  $4,056  $5,624  
Information for Loans Held for Sale Carried at Fair Value
As of June 30, 2020 and December 31, 2019, the aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows:
(Dollars in thousands)June 30, 2020December 31, 2019
Aggregate fair value$24,557  $13,889  
Contractual balance23,533  13,510  
Unrealized gain1,024  379  
The total amount of gains as a result of changes in fair value of loans held for sale included in "Mortgage banking activities" for three and six months ended June 30, 2020 and 2019 were as follows:
 For the three months ended June 30,For the six months ended June 30,
(Dollars in thousands)2020201920202019
Change in fair value$306  $367  $645  $450  
Assets Measured at Fair Value on a Non-recurring Basis
Assets measured at fair value on a non-recurring basis are summarized below:
(Dollars in thousands)TotalSignificant Unobservable Inputs
(Level 3)
June 30, 2020
Impaired loans:
Residential real estate$779  $779  
Commercial and industrial899  899  
Mortgage servicing rights1,256  1,256  
Other real estate owned61  61  
Total$2,995  $2,995  
December 31, 2019
Impaired loans:
Commercial real estate$265  $265  
Commercial and industrial261  261  
Mortgage servicing rights87  87  
Other real estate owned921  921  
Total$1,534  $1,534  
Inputs for Assets Measured at Fair Value on a Nonrecurring Basis
The table below presents quantitative information about the significant unobservable inputs for assets measured at fair value on a nonrecurring basis at June 30, 2020 and December 31, 2019:
(Dollars in thousands)Fair value at
June 30, 2020		Valuation
Technique(s)		Significant
Unobservable Input(s)		Discount % Range/Amount
Impaired loans$1,678  Discounted appraisals; estimated net realizable value of collateralCollateral discounts
10.00-80.00%
Mortgage servicing rights1,256  Discounted cash flowPrepayment speed13.28 %
Discount rate7.75 %
Other real estate owned61  Appraisal of propertyDiscounted appraisal value54.81 %
(Dollars in thousands)Fair value at
December 31, 2019		Valuation
Technique(s)		Significant
Unobservable Input(s)		Discount % Range/Amount
Impaired loans$526  Discounted appraisals; estimated net realizable value of collateralCollateral discounts
10.00-50.00%
Mortgage servicing rights87  Discounted cash flowPrepayment speed13.42 %
Discount rate8.50 %
Other real estate owned921  Appraisal of propertyDiscounted appraisal value
18.00-36.00%
Carrying Amounts and Estimated Fair Values of Financial Instruments
The carrying amounts and estimated fair values of financial instruments, excluding those previously presented unless otherwise noted, at June 30, 2020 and December 31, 2019 are noted in the table below.
Estimated Fair Value
(Dollars in thousands)Carrying ValueQuoted Prices in
Active Markets for
Identical Assets (Level 1)		Significant
Other Observable
Inputs (Level 2)		Significant
Unobservable
Inputs (Level 3)		Total
June 30, 2020    
Financial assets:    
Cash and cash equivalents$364,112  $28,378  $335,734  $—  $364,112  
Federal Home Loan Bank stock12,398  N/AN/AN/AN/A
Net loans1,798,290  —  —  1,844,461  1,844,461  
Accrued interest receivable8,893  —  1,353  7,540  8,893  
Financial liabilities:
Deposits1,821,351  —  1,878,937  —  1,878,937  
Borrowings455,159  —  462,998  —  462,998  
Subordinated notes44,457  —  43,125  —  43,125  
Accrued interest payable1,718  —  1,718  —  1,718  
December 31, 2019
Financial assets:
Cash and cash equivalents$103,930  $19,990  $83,940  $—  $103,930  
Federal Home Loan Bank stock11,475  N/AN/AN/A N/A
Net loans1,214,935  —  —  1,203,639  1,203,639  
Accrued interest receivable4,403  —  1,236  3,167  4,403  
Financial liabilities:
Deposits1,135,428  —  1,138,202  —  1,138,202  
Borrowings212,225  —  212,125  —  212,125  
Subordinated notes44,440  —  47,100  —  47,100  
Accrued interest payable1,574  —  1,574  —  1,574