Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value of Financial Instruments [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

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

	Fair Value Measurements at September 30, 2018 Using:
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale:
U.S. government sponsored enterprises	$	150,053	$	-	$	150,053	$	-
State and political subdivisions		180		-		180		-
Mortgage backed securities and collateralized mortgage obligations		269,093		-		269,093		-
Corporate bonds		29,977		-		29,977		-
Small Business Administration - guaranteed participation securities		57,894		-		57,894		-
Other securities		685		-		685		-
Total securities available for sale	$	507,882	$	-	$	507,882	$	-

	Fair Value Measurements at December 31, 2017 Using:
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
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		325,683		-		325,683		-
Corporate bonds		40,162		-		40,162		-
Small Business Administration - guaranteed participation securities		67,059		-		67,059		-
Other securities		685		-		685
Total securities available for sale	$	571,965	$	-	$	571,965	$	-

Assets Measured at Fair Value on Non-Recurring Basis

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

	Fair Value Measurements at September 30, 2018 Using:
(dollars in thousands)	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)
Other real estate owned	$	2,306	$	-	$	-	$	2,306	Sales comparison approach	Adjustments for differences between comparable sales		1% - 14% (7%)
Impaired loans:
Real estate mortgage - 1 to 4 family		326		-		-		326	Sales comparison approach	Adjustments for differences between comparable sales		5% - 14% (10%)

	Fair Value Measurements at December 31, 2017 Using:
(dollars in thousands)	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)
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 September 30, 2018 and December 31, 2017 are as follows:

(dollars in thousands)	Carrying		Fair Value Measurements at September 30, 2018 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	465,449		465,449		-		-		465,449
Securities available for sale		507,882		-		507,882		-		507,882
Held to maturity securities		23,462		-		23,849		-		23,849
Federal Reserve Bank and Federal Home Loan Bank stock		8,953		N/A		N/A		N/A		N/A
Net loans		3,781,180		-		-		3,719,619		3,719,619
Accrued interest receivable		11,552		100		2,242		9,210		11,552
Financial liabilities:
Demand deposits		403,047		403,047		-		-		403,047
Interest bearing deposits		3,796,877		2,640,883		1,143,702		-		3,784,585
Short-term borrowings		176,377		-		176,377		-		176,377
Accrued interest payable		778		92		686		-		778

(dollars in thousands)	Carrying		Fair Value Measurements at 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		3,592,237		-		-		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