FAIR VALUE DISCLOSURES (Tables)

6 Months Ended

Jun. 30, 2019

FAIR VALUE DISCLOSURES

Summary financial assets and financial liabilities measured at fair value on a recurring basis

	June 30,		December 31,
(Dollars in thousands)	2019		2018
Fair value of financial assets:
Level 1 inputs: securities available for sale - other securities	$	1,130	$	1,088
Level 2 inputs:
Securities available for sale
State and municipal securities		56,167		57,691
U.S. Agency Securities:
Debt securities		17,276		16,881
Collateralized mortgage obligations		63,536		65,414
Mortgage-backed securities		94,462		88,859
Interest rate swaps		2,568		962
Total fair value of financial assets	$	235,139	$	230,895
Fair value of financial liabilities:
Level 2 inputs: interest rate swaps	$	2,568	$	962
Total fair value of financial liabilities	$	2,568	$	962

Summary of certain assets measured on a non‑recurring basis

	June 30, 2019						December 31, 2018
	Recorded						Recorded
	Investment		Related				Investment		Related
(Dollars in thousands)	with Allowance		Allowance		Net		with Allowance		Allowance		Net
Level 3 inputs
Impaired loans:
Commercial and industrial	$	882	$	630	$	252	$	635	$	525	$	110
Commercial real estate		581		29		552		596		44		552
1-4 family residential		1,799		46		1,753		1,824		89		1,735
Consumer		231		22		209		—		—		—
Other		1,242		69		1,173		1,241		100		1,141
Total impaired loans	$	4,735	$	796	$	3,939	$	4,296	$	758	$	3,538

Summary of fair value of repossessed real estate and other foreclosed assets

	June 30,		December 31,
(Dollars in thousands)	2019		2018
Foreclosed assets remeasured at initial recognition:
Carrying value of foreclosed assets prior to measurement	$	36	$	13
Charge-offs recognized in the allowance for loan losses		—		(1)
Fair value	$	36	$	12

Summary of fair market values of all financial instruments

	June 30, 2019				December 31, 2018
			Carrying				Carrying
(Dollars in thousands)	Fair Value		Amount		Fair Value		Amount
Financial assets:
Level 1 inputs:
Cash and due from banks	$	55,213	$	55,213	$	54,450	$	54,450
Interest bearing deposits in banks		211,563		211,563		327,620		327,620
Level 2 inputs:
Securities held to maturity		31		30		32		31
Bank-owned life insurance		71,021		71,021		71,525		71,525
Accrued interest receivable		9,068		9,068		8,227		8,227
Servicing asset		150		150		166		166
Level 3 inputs:
Loans, including held for sale, net		2,646,207		2,618,355		2,432,753		2,423,130
Equity investments		18,922		18,922		13,026		13,026
Total financial assets	$	3,012,175	$	2,984,322	$	2,907,799	$	2,898,175
Financial liabilities:
Level 1 inputs:
Noninterest-bearing deposits	$	1,201,287	$	1,201,287	$	1,183,058	$	1,183,058
Level 2 inputs:
Interest-bearing deposits		1,513,498		1,537,620		1,522,366		1,583,224
Repurchase agreements		803		805		2,498		2,498
Federal Home Loan Bank advances		89,879		90,000		—		—
Junior subordinated debt		—		—		1,571		1,571
Accrued interest payable		864		864		653		653
Total financial liabilities	$	2,806,331	$	2,830,576	$	2,710,146	$	2,771,004