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FAIR VALUES OF FINANCIAL INSTRUMENTS: (Tables)
 12 Months Ended
Dec. 31, 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).
 
 
 
December 31, 2017
Fair Value Measurement Using
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Carrying Value
U.S. Government entity mortgage-backed securities
 
$
—

 
$
13,695

 
$
—

 
$
13,695

Mortgage-backed securities, residential
 
—

 
215,338

 
—

 
215,338

Mortgage-backed securities, commercial
 
—

 
1

 
—

 
1

Collateralized mortgage obligations
 
—

 
339,670

 
—

 
339,670

State and municipal obligations
 
—

 
227,942

 
3,680

 
231,622

Collateralized debt obligations
 
—

 
—

 
14,605

 
14,605

TOTAL
 
$
—

 
$
796,646

 
$
18,285

 
$
814,931

Derivative Assets
 
 

 
$
298

 
 

 
 

Derivative Liabilities
 
 

 
(298
)
 
 

 
 

 
 
December 31, 2016
Fair Value Measurement Using
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Carrying Value
U.S. Government entity mortgage-backed securities
 
$
—

 
$
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 obligations
 
—

 
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 table 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 twelve months ended December 31, 2017 and 2016.
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
December 31, 2017
 
 
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
 
—

 
2,773

 
2,773

Purchases
 
—

 
—

 
—

Settlements
 
(530
)
 
(536
)
 
(1,066
)
Ending balance, December 31
 
$
3,680

 
$
14,605

 
$
18,285

 
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
December 31, 2016
 
 
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
)
Transfers
 
—

 
—

 
—

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 tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2017 and 2016.
2017
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
3,680

 
Discounted cash flow
 
Discount rate
 
2.30%-5.45%

 
 
 

 
 
 
Probability of default
 
—
%
Other real estate
 
$
1,880

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%

Impaired Loans
 
$
3,882

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


2016
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
4,210

 
Discounted cash flow
 
Discount rate
 
3.05%-5.50%

 
 
 

 
 
 
Probability of default
 
—
%
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 present impaired collateral dependent loans measured at fair value on a non-recurring basis by class of loans as of December 31, 2017 and 2016. 
 
 
December 31, 2017
 
 
(Dollar amounts in thousands)
 
Carrying Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
493

 
$
146

 
$
347

Farmland
 
3,035

 
268

 
2,767

Non Farm, Non Residential
 
—

 
—

 
—

Agriculture
 
537

 
205

 
332

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
442

 
6

 
436

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
4,507

 
$
625

 
$
3,882

 
 
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 carrying amount and estimated fair value of assets and liabilities are presented in the table below and were determined based on the above assumptions:
 
 
 
December 31, 2017
 
 
 
 
 
 
Carrying
 
Fair Value 
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
74,107

 
$
20,682

 
$
53,425

 
$
—

 
$
74,107

Securities available-for-sale
 
814,931

 
—

 
796,646

 
18,285

 
814,931

Restricted stock
 
10,379

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,886,852

 
—

 
—

 
1,878,166

 
1,878,166

Accrued interest receivable
 
12,913

 
—

 
3,596

 
9,317

 
12,913

Deposits
 
(2,458,653
)
 
—

 
(2,456,900
)
 
—

 
(2,456,900
)
Short-term borrowings
 
(57,686
)
 
—

 
(57,686
)
 
—

 
(57,686
)
Federal Home Loan Bank advances
 
—

 
—

 
—

 
—

 
—

Accrued interest payable
 
(372
)
 
—

 
(372
)
 
—

 
(372
)
 
 
 
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
)