Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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	September 30, 2016		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	15,692	$	—	$	15,692	$	—
Mortgage backed securities:
Government sponsored agencies	135,205		—		135,205		—
Nongovernment sponsored entities	5,401		—		5,401		—
State and political subdivisions	250		—		250		—
Corporate debt securities	19,903		—		8,597		11,306
Other equity securities	77		—		77		—
Tax-exempt state and political subdivisions	85,574		—		85,574		—
Total available for sale securities	$	262,102	$	—	$	250,796	$	11,306

Derivative financial liabilities
Interest rate swaps	$	8,270	$	—	$	8,270	$	—



	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	September 30, 2016		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	—	$	—	$	—	$	—

Collateral-dependent impaired loans
Commercial	$	—	$	—	$	—	$	—
Commercial real estate	—		—		—		—
Construction and development	648		—		648		—
Residential real estate	130		—		130		—
Total collateral-dependent impaired loans	$	778	$	—	$	778	$	—

Foreclosed properties
Commercial real estate	$	976	$	—	$	976	$	—
Construction and development	19,933		—		19,933		—
Residential real estate	279		—		279		—
Total foreclosed properties	$	21,188	$	—	$	21,188	$	—



	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:



	September 30, 2016				December 31, 2015
Dollars in thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets
Cash and cash equivalents	$	34,499	$	34,499	$	9,487	$	9,487
Securities available for sale	262,102		262,102		280,792		280,792
Other investments	13,182		13,182		8,949		8,949
Loans held for sale, net	—		—		779		779
Loans, net	1,234,605		1,251,189		1,079,331		1,084,955
Accrued interest receivable	5,470		5,470		5,544		5,544
	$	1,549,858	$	1,566,442	$	1,384,882	$	1,390,506
Financial liabilities
Deposits	$	1,156,784	$	1,168,549	$	1,066,709	$	1,077,510
Short-term borrowings	234,657		234,657		171,394		171,394
Long-term borrowings	74,146		77,670		75,581		80,506
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		19,589		19,589
Accrued interest payable	741		741		826		826
Derivative financial liabilities	8,270		8,270		5,072		5,072
	$	1,494,187	$	1,509,476	$	1,339,171	$	1,354,897