XML 56 R28.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Tables)
 12 Months Ended
Dec. 31, 2019
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, 2019
Fair Value Measurement Using
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Carrying Value
U.S. Government entity mortgage-backed securities
 
$
—

 
$
103,633

 
$
—

 
$
103,633

Mortgage-backed securities, residential
 
—

 
243,382

 
—

 
243,382

Mortgage-backed securities, commercial
 
—

 
22,104

 
—

 
22,104

Collateralized mortgage obligations
 
—

 
281,311

 
—

 
281,311

State and municipal obligations
 
—

 
261,869

 
2,565

 
264,434

Municipal taxable
 
—

 
730

 
—

 
730

U.S. Treasury
 
—

 
7,504

 
—

 
7,504

Collateralized debt obligations
 
—

 
—

 
3,619

 
3,619

TOTAL
 
$
—

 
$
920,533

 
$
6,184

 
$
926,717

Derivative Assets
 
 

 
$
828

 
 

 
 

Derivative Liabilities
 
 

 
(828
)
 
 

 
 

 
 
December 31, 2018
Fair Value Measurement Using
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Carrying Value
U.S. Government entity mortgage-backed securities
 
$
—

 
$
25,364

 
$
—

 
$
25,364

Mortgage-backed securities, residential
 
—

 
178,743

 
—

 
178,743

Collateralized mortgage obligations
 
—

 
343,616

 
—

 
343,616

State and municipal obligations
 
—

 
230,800

 
3,135

 
233,935

Collateralized debt obligations
 
—

 
—

 
3,258

 
3,258

TOTAL
 
$
—

 
$
778,523

 
$
6,393

 
$
784,916

Derivative Assets
 
 

 
$
218

 
 

 
 

Derivative Liabilities
 
 

 
(218
)
 
 

 
 
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, 2019 and 2018.
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
December 31, 2019
 
 
State and municipal obligations
 
Collateralized debt obligations
 
Total
Beginning balance, January 1
 
$
3,135

 
$
3,258

 
$
6,393

Total realized/unrealized gains or losses
 
 

 
 

 
 

Included in earnings
 
—

 
—

 
—

Included in other comprehensive income
 
—

 
498

 
498

Purchases
 
—

 
—

 
—

Settlements
 
(570
)
 
(137
)
 
(707
)
Ending balance, December 31
 
$
2,565

 
$
3,619

 
$
6,184

 
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
December 31, 2018
 
 
State and
municipal
obligations
 
Collateralized
debt obligations
 
Total
Beginning balance, January 1
 
$
3,680

 
$
14,605

 
$
18,285

Total realized/unrealized gains or losses
 
 

 
 

 
 

Included in earnings
 
—

 
—

 
—

Included in other comprehensive income
 
—

 
(2,840
)
 
(2,840
)
Transfers
 
—

 
—

 
—

Settlements
 
(545
)
 
(8,507
)
 
(9,052
)
Ending balance, December 31
 
$
3,135

 
$
3,258

 
$
6,393
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, 2019 and 2018.
2019
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
2,565

 
Discounted cash flow
 
Discount rate
 
2.87%-4.44%

 
 
 

 
 
 
Probability of default
 
—
%
Other real estate
 
$
3,625

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

Impaired Loans
 
$
100

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


2018
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
3,135

 
Discounted cash flow
 
Discount rate
 
2.64%-4.80%

 
 
 

 
 
 
Probability of default
 
—
%
Other real estate
 
$
603

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

Impaired Loans
 
$
1,639

 
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, 2019 and 2018. 
 
 
December 31, 2019
(Dollar amounts in thousands)
 
Carrying Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
148

 
$
48

 
$
100

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
—

 
—

 
—

Agriculture
 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
—

 
—

 
—

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
148

 
$
48

 
$
100

 
 
December 31, 2018
(Dollar amounts in thousands)
 
Carrying Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
1,819

 
$
593

 
$
1,226

Farmland
 
211

 
44

 
167

Non Farm, Non Residential
 
—

 
—

 
—

Agriculture
 
346

 
100

 
246

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
—

 
—

 
—

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
2,376

 
$
737

 
$
1,639
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, 2019
 
 
Carrying
 
Fair Value 
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
127,426

 
$
26,275

 
$
101,151

 
$
—

 
$
127,426

Securities available-for-sale
 
926,717

 
—

 
920,533

 
6,184

 
926,717

Restricted stock
 
15,394

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
2,636,447

 
—

 
—

 
2,648,692

 
2,648,692

Accrued interest receivable
 
18,523

 
—

 
3,583

 
14,940

 
18,523

Deposits
 
(3,275,357
)
 
—

 
(3,278,099
)
 
—

 
(3,278,099
)
Short-term borrowings
 
(80,119
)
 
—

 
(80,119
)
 
—

 
(80,119
)
Accrued interest payable
 
(1,739
)
 
—

 
(1,739
)
 
—

 
(1,739
)
 
 
 
December 31, 2018
 
 
Carrying
 
Fair Value 
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
74,388

 
$
23,418

 
$
50,970

 
$
—

 
$
74,388

Securities available-for-sale
 
784,916

 
—

 
778,523

 
6,393

 
784,916

Restricted stock
 
10,390

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,933,552

 
—

 
—

 
1,889,795

 
1,889,795

Accrued interest receivable
 
13,970

 
—

 
3,005

 
10,965

 
13,970

Deposits
 
(2,436,727
)
 
—

 
(2,426,128
)
 
—

 
(2,426,128
)
Short-term borrowings
 
(69,656
)
 
—

 
(69,656
)
 
—

 
(69,656
)
Accrued interest payable
 
(609
)
 
—

 
(609
)
 
—

 
(609
)