Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

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, 2020 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)
U.S. government sponsored enterprises	$	29,996	$	-	$	29,996	$	-
State and political subdivisions		111		-		111		-
Mortgage backed securities and collateralized mortgage obligations - residential		309,768		-		309,768		-
Corporate bonds		70,113		-		70,113		-
Small Business Administration- guaranteed participation securities		44,070		-		44,070		-
Other securities		685		-		685		-
Total securities available for sale	$	454,743	$	-	$	454,743	$	-

	Fair Value Measurements at
	December 31, 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	$	104,512	$	-	$	104,512	$	-
State and political subdivisions		162		-		162		-
Mortgage backed securities and collateralized mortgage obligations - residential		389,517		-		389,517		-
Corporate bonds		30,436		-		30,436		-
Small Business Administration- guaranteed participation securities		48,511		-		48,511		-
Other securities		685		-		685		-
Total securities available for sale	$	573,823	$	-	$	573,823	$	-

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, 2020 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	$	423	$	-	$	-	$	423	Sales comparison approach	Adjustments for differences between comparable sales		1% - 9% (3	%)
Impaired loans:
Real estate mortgage -1 to 4     family		509		-		-		509	Sales comparison approach	Adjustments for differences between comparable sales		1% - 11% (11	%)

	Fair Value Measurements at
	December 31, 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	$	1,579	$	-	$	-	$	1,579	Sales comparison approach	Adjustments for differences between comparable sales		1% - 21% (2	%)
Impaired loans:
Real estate mortgage -1 to 4 family		120		-		-		120	Sales comparison approach	Adjustments for differences between comparable sales		1% - 17% (9	%)

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, 2020 and December 31, 2019 are as follows:

(dollars in thousands)			Fair Value Measurements at
	Carrying		September 30, 2020 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	956,319		956,319		-		-		956,319
Securities available for sale		454,743		-		454,743		-		454,743
Held to maturity securities		15,094		-		16,343		-		16,343
Federal Home Loan Bank stock		5,506		N/A		N/A		N/A		N/A
Net loans		4,165,432		-		-		4,258,258		4,258,258
Accrued interest receivable		11,095		16		1,471		9,608		11,095
Financial liabilities:
Demand deposits		635,345		635,345		-		-		635,345
Interest bearing deposits		4,263,705		2,958,681		1,308,158		-		4,266,839
Short-term borrowings		193,455		-		193,455		-		193,455
Accrued interest payable		777		85		692		-		777

(dollars in thousands)			Fair Value Measurements at
	Carrying		December 31, 2019 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	456,846		456,846		-		-		456,846
Securities available for sale		573,823		-		573,823		-		573,823
Held to maturity securities		18,618		-		19,680		-		19,680
Federal Reserve Bank and Federal
Home Loan Bank stock		9,183		N/A		N/A		N/A		N/A
Net loans		4,017,879		-		-		4,078,210		4,078,210
Accrued interest receivable		10,915		216		2,221		8,478		10,915
Financial liabilities:
Demand deposits		463,858		463,858		-		-		463,858
Interest bearing deposits		3,986,158		2,587,981		1,397,271		-		3,985,252
Short-term borrowings		148,666		-		148,666		-		148,666
Accrued interest payable		1,459		174		1,285		-		1,459