Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the fair value measurements of certain assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall (in thousands):



	Recurring Basis Fair Value Measurements
	March 31, 2019
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
U.S. Government agencies	$	2,977	$	—	$	2,977	$	—
State, county, and municipal securities	28,657		$	—	$	28,657	—
Mortgage-backed securities	385,258		—		385,258		—
Corporate debt securities	17,787		—		17,787		—
Derivative assets	805		—		$	805	—
Total recurring assets at fair value	$	435,484	$	—	$	435,484	$	—

	Recurring Basis Fair Value Measurements
	December 31, 2018
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
U.S. Government agencies	$	3,072	$	—	$	3,072	$	—
State, county, and municipal securities	44,088		$	—	$	44,088	$	—
Mortgage-backed securities	365,877		—		365,877		—
Corporate debt securities	24,717		—		24,717		—
Derivative assets	1,067		$	—	$	1,067	$	—
Total recurring assets at fair value	$	438,821	$	—	$	438,821	$	—

Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table presents the fair value measurements of certain assets and liabilities measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall (dollars in thousands):



	Nonrecurring Basis Fair Value Measurements
	March 31, 2019
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
Impaired loans	$	3,179	$	—	$	—	$	3,179
Loans held for sale	1,511		—		1,511		—
Other real estate	664		—		—		664
Assets held for sale	1,024		—		1,024		—
Total nonrecurring assets at fair value	$	6,378	$	—	$	2,535	$	3,843

	Nonrecurring Basis Fair Value Measurements
	December 31, 2018
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
Impaired loans	$	3,086	$	—	$	—	$	3,086
Loans held for sale	23,876		—		23,876		—
Other real estate	1,067		—		—		1,067
Assets held for sale	1,024		—		1,024		—
Total nonrecurring assets at fair value	$	29,053	$	—	$	24,900	$	4,153

Schedule of Significant Observable Inputs Used in Fair Value Measurement of Level 3 Assets

The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets (dollars in thousands):



	Fair Value at
Description	March 31, 2019		Technique	Unobservable Inputs
Impaired loans	$	3,179	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	664		Third party appraisals	Collateral discounts and estimated costs to sell

	Fair Value at
Description	December 31, 2018		Technique	Unobservable Inputs
Impaired loans	$	3,086	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	1,067		Third party appraisals	Collateral discounts and estimated costs to sell

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments are as follows at March 31, 2019 and December 31, 2018 (dollars in thousands):



	Fair Value Measurements
	March 31, 2019
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	243,430	$	243,430	$	—	$	—
Securities available-for-sale	434,679		—		434,679		—
Securities held-to-maturity	35,107		—		34,834		—
Loans, net	868,871		—		—		869,568
Derivative assets	805		—		805		—
Cash surrender value of life insurance	15,188		—		15,188		—
Financial liabilities:
Non-interest-bearing deposits	$	418,321	$	—	$	418,321	$	—
Interest-bearing deposits	1,027,314		—		847,109		178,554
Securities sold under agreements to repurchase	11,968		11,968		—		—
FHLB borrowings	27,500		—		27,500		—
Other borrowings	22,167		—		22,167		—

	December 31, 2018
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	205,371	$	205,371	$	—	$	—
Available-for-sale securities	437,754		—		437,754		—
Securities held-to-maturity	37,759		—		36,974		—
Loans, net	882,355		—		—		885,054
Derivative assets	1,067		—		1,067		—
Cash surrender value of life insurance	15,135		—		15,135		—
Financial liabilities:
Non-interest-bearing deposits	383,167		—		383,167		—
Interest-bearing deposits	1,068,904		—		888,806		177,794
Securities sold under agreements to repurchase	11,220		11,220		—		—
FHLB borrowings	27,500		—		27,500		—
Other borrowings	22,167		—		22,167		—