Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

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	March 31, 2016		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	20,939	$	—	$	20,939	$	—
Mortgage backed securities:
Government sponsored agencies	153,893		—		153,893		—
Nongovernment sponsored entities	7,164		—		7,164		—
State and political subdivisions	250		—		250		—
Corporate debt securities	13,915		—		8,031		5,884
Other equity securities	77		—		77		—
Tax-exempt state and political subdivisions	75,277		—		75,277		—
Total available for sale securities	$	271,515	$	—	$	265,631	$	5,884

Derivative financial liabilities
Interest rate swaps	$	8,238	$	—	$	8,238	$	—



	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2015		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	21,475	$	—	$	21,475	$	—
Mortgage backed securities:
Government sponsored agencies	146,734		—		146,734		—
Nongovernment sponsored entities	7,885		—		7,885		—
State and political subdivisions	1,953		—		1,953		—
Corporate debt securities	14,226		—		8,367		5,859
Other equity securities	77		—		77		—
Tax-exempt state and political subdivisions	88,442		—		88,442		—
Total available for sale securities	$	280,792	$	—	$	274,933	$	5,859

Derivative financial liabilities
Interest rate swaps	$	5,072	$	—	$	5,072	$	—

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



	Balance at		Fair Value Measurements Using:
Dollars in thousands	March 31, 2016		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	610	$	—	$	610	$	—

Collateral-dependent impaired loans
Commercial	$	—	$	—	$	—	$	—
Commercial real estate	360		—		—		360
Construction and development	1,013		—		1,013		—
Residential real estate	121		—		121		—
Total collateral-dependent impaired loans	$	1,494	$	—	$	1,134	$	360

Foreclosed properties
Commercial real estate	976		—		976		—
Construction and development	18,347		—		18,347		—
Residential real estate	506		—		506		—
Total foreclosed properties	$	19,829	$	—	$	19,829	$	—



	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2015		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	779	$	—	$	779	$	—

Collateral-dependent impaired loans
Commercial	$	—	—		$	—	$	—
Commercial real estate	627		—		—		627
Construction and development	1,054		—		—		1,054
Residential real estate	279		—		279		—
Total collateral-dependent impaired loans	$	1,960	$	—	$	279	$	1,681

Foreclosed properties
Commercial real estate	1,103		—		1,103		—
Construction and development	18,477		—		18,419		58
Residential real estate	314		—		314		—
Total foreclosed properties	$	19,894	$	—	$	19,836	$	58

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



	March 31, 2016				December 31, 2015
Dollars in thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets
Cash and cash equivalents	$	16,660	$	16,660	$	9,487	$	9,487
Securities available for sale	271,515		271,515		280,792		280,792
Other investments	10,099		10,099		8,949		8,949
Loans held for sale, net	610		610		779		779
Loans, net	1,096,790		1,109,243		1,079,331		1,084,955
Accrued interest receivable	5,230		5,230		5,544		5,544
	$	1,400,904	$	1,413,357	$	1,384,882	$	1,390,506
Financial liabilities
Deposits	$	1,094,544	$	1,116,367	$	1,066,709	$	1,077,510
Short-term borrowings	153,448		153,448		171,394		171,394
Long-term borrowings	75,103		79,917		75,581		80,506
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		19,589		19,589
Accrued interest payable	778		778		826		826
Derivative financial liabilities	8,238		8,238		5,072		5,072
	$	1,351,700	$	1,378,337	$	1,339,171	$	1,354,897