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Fair Value (Tables)
 3 Months Ended
Mar. 31, 2020
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).
 
 
March 31, 2020
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
101,504

 
$
—

 
$
101,504

Mortgage Backed Securities-residential
 
—

 
244,856

 
—

 
244,856

Mortgage Backed Securities-commercial
 
—

 
22,689

 
—

 
22,689

Collateralized mortgage obligations
 
—

 
284,366

 
—

 
284,366

State and municipal
 
—

 
269,894

 
2,235

 
272,129

Municipal taxable
 
—

 
726

 
—

 
726

U.S. Treasury
 
—

 
2,538

 
—

 
2,538

Collateralized debt obligations
 
—

 
—

 
3,233

 
3,233

TOTAL
 
$
—

 
$
926,573

 
$
5,468

 
$
932,041

Derivative Assets
 
 

 
2,742

 
 

 
 

Derivative Liabilities
 
 

 
(2,742
)
 
 

 
 

 
 
December 31, 2019
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
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
 
—

 
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
)
 
 

 
 
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 months ended March 31, 2020 and the year ended December 31, 2019. 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Three Months Ended March 31, 2020
(Dollar amounts in thousands)
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
$
2,565

 
$
3,619

 
$
6,184

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
(386
)
 
(386
)
Transfers
—

 
—

 
—

Settlements
(330
)
 
—

 
(330
)
Ending balance, March 31
$
2,235

 
$
3,233

 
$
5,468

 
 
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Year Ended December 31, 2019
(Dollar amounts in thousands)
 
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
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 March 31, 2020.
(Dollar amounts in thousands)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
2,235

 
Discounted cash flow
 
Discount rate
Probability of default
 
3.09%-4.44% 0%
Other real estate  
 
$
3,894

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
$
99

 
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, 2019.
(Dollar amounts in thousands)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
2,565

 
Discounted cash flow
 
Discount rate
Probability of default
 
2.87%-4.44% 0%
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%
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-recurring basis, as of March 31, 2020 and December 31, 2019, which are all considered Level 3.
 
 
March 31, 2020
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
141

 
$
42

 
$
99

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
 
$
141

 
$
42

 
$
99

 
 
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
Schedule of carrying amount and estimated fair value of financial instruments
The fair value of off-balance sheet items is not considered material.
 
 
March 31, 2020
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
211,034

 
$
31,450

 
$
179,584

 
$
—

 
$
211,034

Federal funds sold
 
1

 
—

 
1

 
—

 
1

Securities available-for-sale
 
932,041

 
—

 
926,573

 
5,468

 
932,041

Restricted stock
 
15,400

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
2,601,574

 
—

 
—

 
2,703,088

 
2,703,088

Accrued interest receivable
 
17,098

 
—

 
5,000

 
12,098

 
17,098

Deposits
 
(3,291,231
)
 
—

 
(3,302,047
)
 
—

 
(3,302,047
)
Short-term borrowings
 
(83,784
)
 
—

 
(83,784
)
 
—

 
(83,784
)
Other borrowings
 
(27,494
)
 
—

 
(27,938
)
 
—

 
(27,938
)
Accrued interest payable
 
(1,481
)
 
—

 
(1,481
)
 
—

 
(1,481
)
 
 
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

Federal funds sold
 
7,500

 
—

 
7,500

 
—

 
7,500

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
)
Other borrowings
 
(30,973
)
 
—

 
(31,143
)
 
—

 
(31,143
)
Accrued interest payable
 
(1,739
)
 
—

 
(1,739
)
 
—

 
(1,739
)