Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019 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	$	164,490	$	-	$	164,490	$	-
State and political subdivisions		169		-		169		-
Mortgage backed securities and collateralized mortgage obligations - residential		406,166		-		406,166		-
Corporate bonds		40,281		-		40,281		-
Small Business Administration- guaranteed participation securities		50,970		-		50,970		-
Other securities		683		-		683		-
Total securities available for sale	$	662,759	$	-	$	662,759	$	-

	Fair Value Measurements at
	December 31, 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	$	152,160	$	-	$	152,160	$	-
State and political subdivisions		173		-		173		-
Mortgage backed securities and collateralized mortgage obligations - residential		262,032		-		262,032		-
Corporate bonds		29,938		-		29,938		-
Small Business Administration- guaranteed participation securities		56,475		-		56,475		-
Other securities		685		-		685		-
Total securities available for sale	$	501,463	$	-	$	501,463	$	-

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, 2019 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	$	2,409	$	-	$	-	$	2,409	Sales comparison approach	Adjustments for differences between comparable sales		1% - 9% (2	%)
Impaired loans:
Real estate mortgage -1 to 4     family		-		-		-		-	Sales comparison approach	Adjustments for differences between comparable sales		N/A

	Fair Value Measurements at
	December 31, 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	$	1,675	$	-	$	-	$	1,675	Sales comparison approach	Adjustments for differences between comparable sales		1% - 14% (7	%)
Impaired loans:
Real estate mortgage -1 to 4 family		459		-		-		459	Sales comparison approach	Adjustments for differences between comparable sales		5% - 14% (10	%)

Carrying Amounts and Estimated Fair Values of Financial Instruments

In accordance with FASB Topic 825, Financial Instruments (“ASC 825”), the carrying amounts and estimated fair values (represents exit price) of financial instruments, at September 30, 2019 and December 31, 2018 are as follows:

(dollars in thousands)			Fair Value Measurements at
	Carrying		September 30, 2019 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	450,677		450,677		-		-		450,677
Securities available for sale		662,759		-		662,759		-		662,759
Held to maturity securities		19,705		-		20,836		-		20,836
Federal Reserve Bank and Federal
Home Loan Bank stock		9,183		N/A		N/A		N/A		N/A
Net loans		3,940,990		-		-		3,990,429		3,990,429
Accrued interest receivable		11,738		96		2,770		8,872		11,738
Financial liabilities:
Demand deposits		453,439		453,439		-		-		453,439
Interest bearing deposits		4,007,728		2,550,505		1,456,107		-		4,006,612
Short-term borrowings		151,095		-		151,095		-		151,095
Accrued interest payable		1,534		163		1,371		-		1,534

(dollars in thousands)			Fair Value Measurements at
	Carrying		December 31, 2018 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	503,709		503,709		-		-		503,709
Securities available for sale		501,463		-		501,463		-		501,463
Held to maturity securities		22,501		-		22,924		-		22,924
Federal Reserve Bank and Federal
Home Loan Bank stock		8,953		N/A		N/A		N/A		N/A
Net loans		3,829,330		-		-		3,753,966		3,753,966
Accrued interest receivable		11,341		353		2,371		8,617		11,341
Financial liabilities:
Demand deposits		405,069		405,069		-		-		405,069
Interest bearing deposits		3,869,178		2,594,672		1,264,772		-		3,859,444
Short-term borrowings		161,893		-		161,893		-		161,893
Accrued interest payable		1,024		104		920		-		1,024