Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 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
	June 30, 2019
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
U.S. Government agencies	$	3,042	$	—	$	3,042	$	—
State, county, and municipal securities	12,733		$	—	12,733		$	—
Mortgage-backed securities	400,079		—		400,079		—
Corporate debt securities	9,784		—		9,784		—
Derivative assets	669		$	—	669		$	—
Total recurring assets at fair value	$	426,307	$	—	$	426,307	$	—

	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
	June 30, 2019
	Fair Value		Level 1		Level 2		Level 3
Financial assets:
Impaired loans	$	4,307	$	—	$	—	$	4,307
Loans held for sale	10,304		—		10,304		—
Other real estate	387		—		—		387
Assets held for sale	1,024		—		1,024		—
Total nonrecurring assets at fair value	$	16,022	$	—	$	11,328	$	4,694

	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	June 30, 2019		Technique	Unobservable Inputs
Impaired loans	$	4,307	Third party appraisals	Collateral discounts and estimated costs to sell
Other real estate	387		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 June 30, 2019 and December 31, 2018 (dollars in thousands):



	Fair Value Measurements
	June 30, 2019
	Carrying Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	243,430	$	243,430	$	—	$	—
Securities available-for-sale	425,638		—		425,638		—
Securities held-to-maturity	33,219		—		33,363		—
Loans, net	851,908		—		—		862,519
Derivative assets	669		—		669		—
Cash surrender value of life insurance	15,248		—		15,248		—
Financial liabilities:
Non-interest-bearing deposits	$	399,619	$	—	$	399,619	$	—
Interest-bearing deposits	1,023,770		—		847,109		178,554
Securities sold under agreements to repurchase	7,816		7,816		—		—
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		—