FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

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

Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows as of the dates indicated:

			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2018
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	1,504	$	1,504	$	—	$	—
Equity securities	19,477		19,477		—		—
Securities available for sale
U.S. Government agency securities	32,038		—		32,038		—
Agency mortgage-backed securities	220,105		—		220,105		—
Agency collateralized mortgage obligations	134,911		—		134,911		—
State, county, and municipal securities	1,735		—		1,735		—
Single issuer trust preferred securities issued by banks and insurers	707		—		707		—
Pooled trust preferred securities issued by banks and insurers	1,329		—		—		1,329
Small business administration pooled securities	51,927		—		51,927		—
Loans held for sale	6,431		—		6,431		—
Derivative instruments	26,310		—		26,310		—
Liabilities
Derivative instruments	17,523		—		17,523		—
Total recurring fair value measurements	$	478,951	$	20,981	$	456,641	$	1,329
Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	29,109	$	—	$	—	$	29,109
Total nonrecurring fair value measurements	$	29,109	$	—	$	—	$	29,109

			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2017
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	1,324	$	1,324	$	—	$	—
Securities available for sale
U.S. Government agency securities	35,430		$	—	35,430		—
Agency mortgage-backed securities	215,764		—		215,764		—
Agency collateralized mortgage obligations	122,012		—		122,012		—
State, county, and municipal securities	2,274		—		2,274		—
Single issuer trust preferred securities issued by banks and insurers	2,016		—		2,016		—
Pooled trust preferred securities issued by banks and insurers	1,640		—		—		1,640
Small business administration pooled securities	47,778		—		47,778		—
Equity securities	20,584		20,584		—		—
Loans held for sale	4,768		—		4,768		—
Derivative instruments	17,476		—		17,476		—
Liabilities
Derivative instruments	15,693		—		15,693		—
Total recurring fair value measurements	$	455,373	$	21,908	$	431,825	$	1,640
Nonrecurring fair value measurements:
Assets
Collateral dependent impaired loans	$	33,567	$	—	$	—	$	33,567
Other real estate owned and other foreclosed assets	612		—		—		612
Total nonrecurring fair value measurements	$	34,179	$	—	$	—	$	34,179

Reconciliation of Assets on Recurring Basis Using Significant Unobservable Inputs

All assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were valued using pricing models and discounted cash flow methodologies, as of December 31, 2018, 2017 and 2016. This reconciliation is presented in the table below, for the periods indicated:

	2018			2017			2016
	(Dollars in thousands)
Pooled Trust Preferred Securities
Beginning balance	$	1,640		$	1,584		$	1,572
Gain and (losses) (realized/unrealized)
Included in earnings	—			—			—
Included in other comprehensive income	191			77			29
Settlements	(502		)	(21		)	(17		)
Ending Balance	$	1,329		$	1,640		$	1,584

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table sets forth certain unobservable inputs regarding the Company's financial instruments that are classified as Level 3 as of December 31st for the years indicated:

Valuation Technique	Fair Value				Unobservable Inputs	Range		Weighted Average
	2018		2017			2018	2017	2018	2017
	(Dollars in thousands)
Discounted cash flow methodology
Pooled trust preferred securities	$	1,329	$	1,640	Cumulative prepayment	0% - 59%	0% - 61%	2.1%	2.5%
					Cumulative default	5% - 100%	5% - 100%	16.2%	12.4%
					Loss given default	85% - 100%	85% - 100%	94.8%	94.3%
					Cure given default	0% - 75%	0% - 75%	60.9%	60.9%
Appraisals of collateral (1)
Collateral dependent impaired loans	$	29,109	$	33,567
Other real estate owned and foreclosed assets	$	—	$	612

(1)

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.

Schedule of Fair Values and Related Carrying Amounts by Balance Sheet Grouping

he estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated:

					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2018
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,004	$	1,015	$	—	$	1,015	$	—
Agency mortgage-backed securities	252,484		250,928		—		250,928		—
Agency collateralized mortgage obligations	332,775		326,724		—		326,724		—
Single issuer trust preferred securities issued by banks	1,500		1,490		—		1,490		—
Small business administration pooled securities	23,727		23,483		—		23,483		—
Loans, net of allowance for loan losses(b)	6,812,792		6,635,209		—		—		6,635,209
Federal Home Loan Bank stock(c)	15,683		15,683		—		15,683		—
Cash surrender value of life insurance policies(d)	160,456		160,456		—		160,456		—
Financial liabilities
Deposit liabilities, other than time deposits(e)	$	6,716,017	$	6,716,017	$	—	$	6,716,017	$	—
Time certificates of deposits(f)	711,103		703,728		—		703,728		$	—
Federal Home Loan Bank borrowings(f)	147,806		147,603		—		147,603		—
Junior subordinated debentures(g)	76,173		73,827		—		73,827		—
Subordinated debentures(f)	34,728		32,509		—		—		32,509

 

					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2017
Financial assets	(Dollars in thousands)
Securities held to maturity(a)
U.S. Treasury securities	$	1,006	$	1,035	$	—	$	1,035	$	—
Agency mortgage-backed securities	204,768		205,823		—		205,823		—
Agency collateralized mortgage obligations	262,998		258,408		—		258,408		—
Single issuer trust preferred securities issued by banks	1,500		1,529		—		1,529		—
Small business administration pooled securities	27,416		27,399		—		27,399		—
Loans, net of allowance for loan losses(b)	6,261,343		6,116,051		—		—		6,116,051
Federal Home Loan Bank stock(c)	11,597		11,597		—		11,597		—
Cash surrender value of life insurance policies(d)	151,528		151,528		—		151,528		—
Financial liabilities
Deposit liabilities, other than time deposits(e)	$	6,084,952	$	6,084,952	$	—	$	6,084,952	$	—
Time certificates of deposits(f)	644,301		639,060		—		639,060		—
Federal Home Loan Bank borrowings(f)	53,264		52,111		—		52,111		—
Customer repurchase agreements and other short-term borrowings(f)	162,679		162,679		—		—		162,679
Junior subordinated debentures(g)	73,073		74,680		—		74,680		—
Subordinated debentures(f)	34,682		32,707		—		—		32,707

(a) The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis.

(b) Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows. Additionally, this amount excludes collateral dependent impaired loans, which are deemed to be marked to fair value on a nonrecurring basis.

(c) FHLB stock has no quoted market value and is carried at cost, therefore the carrying amount approximates fair value.

(d) Cash surrender value of life insurance is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore carrying amount approximates fair value.

(e) Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date.

(f) Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

(g)

Fair value was determined based upon market prices of securities with similar terms and maturities.