XML 42 R31.htm IDEA: XBRL DOCUMENT

Fair Value (Tables)

6 Months Ended

Jun. 30, 2018

Financial instruments that were measured at fair value on a recurring and nonrecurring basis

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at June 30, 2018.

($ in thousands)
Description of Financial Instruments	Fair Value at June 30, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	18,537		—		18,537		—
Mortgage-backed securities		282,287		—		282,287		—
Corporate bonds		33,244		—		33,244		—
Total available for sale securities	$	334,068		—		334,068		—

Nonrecurring
Impaired loans	$	14,586		—		—		14,586
Foreclosed real estate		8,296		—		—		8,296

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2017.

($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	13,867		—		13,867		—
Mortgage-backed securities		295,213		—		295,213		—
Corporate bonds		34,190		—		34,190		—
Total available for sale securities	$	343,270		—		343,270		—

Nonrecurring
Impaired loans	$	14,086		—		—		14,086
Foreclosed real estate		12,571		—		—		12,571

Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2018, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at June 30, 2018	Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans	$ 14,586	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate	8,296	Appraised value; List or contract price	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-10%

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at December 31, 2017	Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans	$ 14,086	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate	12,571	Appraised value; List or contract price	Discounts to reflect current market conditions and estimated costs to sell	0-10%

Schedule of the carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2018 and December 31, 2017 are as follows:

		June 30, 2018				December 31, 2017
($ in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Cash and due from banks, noninterest-bearing	Level 1	$	97,163		97,163		114,301		114,301
Due from banks, interest-bearing	Level 1		462,972		462,972		375,189		375,189
Securities available for sale	Level 2		334,068		334,068		343,270		343,270
Securities held to maturity	Level 2		108,265		107,068		118,503		118,998
Presold mortgages in process of settlement	Level 1		9,311		9,311		12,459		12,459
Total loans, net of allowance	Level 3		4,126,092		4,084,898		4,019,071		4,010,551
Accrued interest receivable	Level 1		13,930		13,930		14,094		14,094
Bank-owned life insurance	Level 1		100,413		100,413		99,162		99,162

Deposits	Level 2		4,553,621		4,547,235		4,406,955		4,401,757
Borrowings	Level 2		407,076		398,113		407,543		397,903
Accrued interest payable	Level 2		1,651		1,651		1,235		1,235

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details