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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value
The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).
 
 
September 30, 2017
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
14,534

 
$
—

 
$
14,534

Mortgage Backed Securities-residential
 
—

 
228,340

 
—

 
228,340

Mortgage Backed Securities-commercial
 
—

 
1

 
—

 
1

Collateralized mortgage obligations
 
—

 
347,605

 
—

 
347,605

State and municipal
 
—

 
227,572

 
3,680

 
231,252

Collateralized debt obligations
 
—

 
—

 
13,692

 
13,692

TOTAL
 
$
—

 
$
818,052

 
$
17,372

 
$
835,424

Derivative Assets
 
 

 
484

 
 

 
 

Derivative Liabilities
 
 

 
(484
)
 
 

 
 

 
 
December 31, 2016
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
13,249

 
$
—

 
$
13,249

Mortgage Backed Securities-residential
 
—

 
261,005

 
—

 
261,005

Mortgage Backed Securities-commercial
 
—

 
4

 
—

 
4

Collateralized mortgage obligations
 
—

 
348,176

 
—

 
348,176

State and municipal
 
—

 
214,713

 
4,210

 
218,923

Collateralized debt obligations
 
—

 
—

 
12,368

 
12,368

TOTAL
 
$
—

 
$
837,147

 
$
16,578

 
$
853,725

Derivative Assets
 
 

 
653

 
 

 
 

Derivative Liabilities
 
 

 
(653
)
 
 

 
 
Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)
The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2017 and the year ended December 31, 2016. 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Three Months Ended September 30, 2017
(Dollar amounts in thousands)
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, July 1
$
3,680

 
$
12,283

 
$
15,963

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
1,547

 
1,547

Transfers
—

 
—

 
—

Settlements
—

 
(138
)
 
(138
)
Ending balance, September 30
$
3,680

 
$
13,692

 
$
17,372

 
 
 
Nine Months Ended September 30, 2017
(Dollar amounts in thousands)
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
$
4,210

 
$
12,368

 
$
16,578

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
1,690

 
1,690

Transfers
—

 
—

 
—

Settlements
(530
)
 
(366
)
 
(896
)
Ending balance, September 30
$
3,680

 
$
13,692

 
$
17,372

 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Year Ended December 31, 2016
(Dollar amounts in thousands)
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
 
$
4,725

 
$
14,875

 
$
19,600

Total realized/unrealized gains or losses
 
 

 
 

 
 

Included in earnings
 
—

 
—

 
—

Included in other comprehensive income
 
—

 
(2,066
)
 
(2,066
)
Purchases
 
—

 
—

 
—

Settlements
 
(515
)
 
(441
)
 
(956
)
Ending balance, December 31
 
$
4,210

 
$
12,368

 
$
16,578
Quantitative information about recurring and non-recurring Level 3
The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2017.
(Dollar amounts in thousands)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
3,680

 
Discounted cash flow
 
Discount rate
Probability of default
 
2.30%-5.45% 0%
Other real estate  
 
$
1,866

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
$
1,330

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2016.
(Dollar amounts in thousands)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
4,210

 
Discounted cash flow
 
Discount rate
Probability of default
 
3.05%-5.50% 0%
Other real estate  
 
$
2,531

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
1,387

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
0.00%-50.00%
Schedule of loans identified as impaired by class of loans
The following tables presents loans identified as impaired by class of loans, and carried at fair value on a non-recuring basis, as of September 30, 2017 and December 31, 2016, which are all considered Level 3.
 
 
September 30, 2017
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
502

 
$
150

 
$
352

Farmland
 
312

 
54

 
258

Non Farm, Non Residential
 
—

 
—

 
—

Agriculture
 
490

 
205

 
285

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
462

 
27

 
435

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
1,766

 
$
436

 
$
1,330

 
 
December 31, 2016
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
537

 
$
36

 
$
501

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
657

 
206

 
451

Agriculture
 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
524

 
89

 
435

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
1,718

 
$
331

 
$
1,387
Schedule of carrying amount and estimated fair value of financial instruments
The fair value of off-balance sheet items is not considered material.
 
 
September 30, 2017
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
61,003

 
$
18,709

 
$
42,294

 
$
—

 
$
61,003

Federal funds sold
 
9,398

 
—

 
9,398

 
—

 
9,398

Securities available-for-sale
 
835,424

 
—

 
818,052

 
17,372

 
835,424

Restricted stock
 
10,379

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,846,762

 
—

 
—

 
1,862,884

 
1,862,884

Accrued interest receivable
 
13,364

 
—

 
3,992

 
9,372

 
13,364

Deposits
 
(2,453,411
)
 
—

 
(2,453,096
)
 
—

 
(2,453,096
)
Short-term borrowings
 
(23,514
)
 
—

 
(23,514
)
 
—

 
(23,514
)
Federal Home Loan Bank advances
 
—

 
—

 
—

 
—

 
—

Accrued interest payable
 
(354
)
 
—

 
(354
)
 
—

 
(354
)
 
 
December 31, 2016
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
75,012

 
$
21,047

 
$
53,965

 
$
—

 
$
75,012

Federal funds sold
 
6,952

 
—

 
6,952

 
—

 
6,952

Securities available-for-sale
 
853,725

 
—

 
837,147

 
16,578

 
853,725

Restricted stock
 
10,359

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,820,407

 
—

 
—

 
1,854,046

 
1,854,046

Accrued interest receivable
 
12,311

 
—

 
3,340

 
8,971

 
12,311

Deposits
 
(2,428,526
)
 
—

 
(2,414,555
)
 
—

 
(2,414,555
)
Short-term borrowings
 
(80,989
)
 
—

 
(80,989
)
 
—

 
(80,989
)
Federal Home Loan Bank advances
 
(132
)
 
—

 
(137
)
 
—

 
(137
)
Accrued interest payable
 
(363
)
 
—

 
(363
)
 
—

 
(363
)