Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value of Financial Instruments [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value under ASC 820 on a recurring basis are summarized below:

	Fair Value Measurements at March 31, 2018 Using:
	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Securities available for sale:
U.S. government sponsored enterprises		$	151,327		$	-		$	151,327		$	-
State and political subdivisions			525			-			525			-
Mortgage backed securities and collateralized mortgage obligations - residential			297,633			-			297,633			-
Corporate bonds			35,227			-			35,227			-
Small Business Administration- guaranteed participation securities			64,113			-			64,113			-
Mortgage backed securities and collateralized mortgage obligations - commercial			9,573			-			9,573			-
Other securities			685			-			685			-
Total securities available for sale		$	559,083			-			559,083			-

	Fair Value Measurements at December 31, 2017 Using:
	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Securities available for sale:
U.S. government sponsored enterprises		$	137,851		$	-		$	137,851		$	-
State and political subdivisions			525			-			525			-
Mortgage backed securities and collateralized mortgage obligations - residential			315,983			-			315,983			-
Corporate bonds			40,162			-			40,162			-
Small Business Administration- guaranteed participation securities			67,059			-			67,059			-
Mortgage backed securities and collateralized mortgage obligations - commercial			9,700			-			9,700			-
Other securities			685			-			685			-
Total securities available for sale		$	571,965			-			571,965			-

Assets measured at fair value on a non-recurring basis

Assets measured at fair value on a non-recurring basis are summarized below:

	Fair Value Measurements at March 31, 2018 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Valuation technique	Unobservable inputs	Range (Weighted Average)
(dollars in thousands)
Other real estate owned	$	2,190	$	-	$	-	$	2,190	Sales comparison approach	Adjustments for differences between comparable sales		1% - 14% (7	%)
Impaired loans:
Real estate mortgage - 1 to 4 family		750		-		-		750	Sales comparison approach	Adjustments for differences between comparable sales		5% - 14% (10	%)

	Fair Value Measurements at December 31, 2017 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Valuation technique	Unobservable inputs	Range (Weighted Average)
(dollars in thousands)
Other real estate owned	$	3,246	$	-	$	-	$	3,246	Sales comparison approach	Adjustments for differences between comparable sales		1% - 14% (7	%)
Impaired loans:
Real estate mortgage - 1 to 4 family		844		-		-		844	Sales comparison approach	Adjustments for differences between comparable sales		5% - 14% (10	%)

Carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values (represents exit price) of financial instruments, at March 31, 2018 and December 31, 2017 are as follows:

(dollars in thousands)			Fair Value Measurements at
	Carrying		March 31, 2018 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	617,170		617,170		-		-		617,170
Securities available for sale		559,083		35		559,048		-		559,083
Held to maturity securities		26,174		-		26,994		-		26,994
Federal Reserve Bank and Federal
Home Loan Bank stock		8,779		N/A		N/A		N/A		N/A
Net loans		3,622,596		-		-		3,598,673		3,598,673
Accrued interest receivable		10,579		85		2,611		7,883		10,579
Financial liabilities:
Demand deposits		403,782		403,782		-		-		403,782
Interest bearing deposits		3,831,298		2,721,854		1,122,106		-		3,843,960
Short-term borrowings		203,910		-		203,910		-		203,910
Accrued interest payable		665		75		590		-		665

(dollars in thousands)			Fair Value Measurements at
	Carrying		December 31, 2017 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	612,740		612,740		-		-		612,740
Securities available for sale		571,965		35		571,930		-		571,965
Held to maturity securities		27,551		-		28,701		-		28,701
Federal Reserve Bank and Federal
Home Loan Bank stock		8,779		N/A		N/A		N/A		N/A
Net loans		3,692,237		-		-		3,598,213		3,598,213
Accrued interest receivable		11,441		243		2,440		8,758		11,441
Financial liabilities:
Demand deposits		398,399		398,399		-		-		398,399
Interest bearing deposits		3,774,927		2,707,961		1,076,213		-		3,784,174
Short-term borrowings		242,991		-		242,991		-		242,991
Accrued interest payable		537		77		460		-		537