Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis.



	Balance at		Fair Value Measurements Using:
Dollars in thousands	June 30, 2015		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	25,389	$	—	$	25,389	$	—
Mortgage backed securities:
Government sponsored agencies	152,943		—		152,943		—
Nongovernment sponsored entities	9,962		—		9,962		—
State and political subdivisions	1,684		—		1,684		—
Corporate debt securities	11,806		—		8,003		3,803
Other equity securities	7		—		7		—
Tax-exempt state and political subdivisions	74,870		—		74,870		—
Total available for sale securities	$	276,661	$	—	$	272,858	$	3,803

Derivative financial liabilities
Interest rate swaps	$	3,664	$	—	$	3,664	$	—



	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2014		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	23,174	$	—	$	23,174	$	—
Mortgage backed securities:
Government sponsored agencies	149,777		—		149,777		—
Nongovernment sponsored entities	12,145		—		12,145		—
State and political subdivisions	8,694		—		8,694		—
Corporate debt securities	3,776		—		—		3,776
Other equity securities	7		—		7		—
Tax-exempt state and political subdivisions	85,261		—		85,261		—
Total available for sale securities	$	282,834	$	—	$	279,058	$	3,776

Derivative financial liabilities
Interest rate swaps	$	2,911	$	—	$	2,911	$	—

Assets measured at fair value on a nonrecurring basis are included in the table below.



	Balance at		Fair Value Measurements Using:
Dollars in thousands	June 30, 2015		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	—	$	—	$	—	$	—

Collateral-dependent impaired loans
Commercial	$	—	$	—	$	—	$	—
Commercial real estate	433		—		433		—
Construction and development	—		—		—		—
Residential real estate	1,274		—		1,140		134
Total collateral-dependent impaired loans	$	1,707	$	—	$	1,573	$	134

Foreclosed properties
Commercial real estate	1,968		—		1,968		—
Construction and development	18,802		—		18,744		58
Residential real estate	1,240		—		1,240		—
Total foreclosed properties	$	22,010	$	—	$	21,952	$	58



	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2014		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	527	$	—	$	527	$	—

Collateral-dependent impaired loans
Commercial	$	44	—		$	—	$	44
Commercial real estate	344		—		344		—
Construction and development	852		—		852		—
Residential real estate	312		—		312		—
Total collateral-dependent impaired loans	$	1,552	$	—	$	1,508	$	44

Foreclosed properties
Commercial real estate	3,892		—		3,892		—
Construction and development	20,952		—		20,841		111
Residential real estate	2,025		—		2,025		—
Total foreclosed properties	$	26,869	$	—	$	26,758	$	111

The carrying values and estimated fair values of our financial instruments are summarized below:



	June 30, 2015				December 31, 2014
Dollars in thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets
Cash and cash equivalents	$	13,262	$	13,262	$	12,510	$	12,510
Securities available for sale	276,661		276,661		282,834		282,834
Other investments	8,583		8,583		6,183		6,183
Loans held for sale, net	—		—		527		527
Loans, net	1,064,472		1,069,508		1,019,842		1,033,890
Accrued interest receivable	5,473		5,473		5,838		5,838
	$	1,368,451	$	1,373,487	$	1,327,734	$	1,341,782
Financial liabilities
Deposits	$	1,053,310	$	1,068,532	$	1,061,314	$	1,078,406
Short-term borrowings	174,599		174,599		123,633		123,633
Long-term borrowings	76,536		82,861		77,490		84,732
Subordinated debentures	2,500		2,500		16,800		16,800
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		19,589		19,589
Accrued interest payable	812		812		812		812
Derivative financial liabilities	3,664		3,664		2,911		2,911
	$	1,331,010	$	1,352,557	$	1,302,549	$	1,326,883