Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	32,453	$	—	$	32,453	$	—
Mortgage backed securities:
Government sponsored agencies	101,971		—		101,971		—
Nongovernment sponsored entities	1,649		—		1,649		—
State and political subdivisions	19,098		—		19,098		—
Corporate debt securities	10,728		—		10,728		—
Other equity securities	137		—		137		—
Tax-exempt state and political subdivisions	130,854		—		130,854		—
Total available for sale securities	$	296,890	$	—	$	296,890	$	—

Derivative financial assets
Interest rate swaps	$	764	$	—	$	764	$	—

Derivative financial liabilities
Interest rate swaps	$	1,116	$	—	$	1,116	$	—



	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2017		Level 1		Level 2		Level 3
Available for sale securities
U.S. Government sponsored agencies	$	31,613	$	—	$	31,613	$	—
Mortgage backed securities:
Government sponsored agencies	121,321		—		121,321		—
Nongovernment sponsored entities	2,077		—		2,077		—
State and political subdivisions	17,677		—		17,677		—
Corporate debt securities	16,245		—		16,245		—
Other equity securities	137		—		137		—
Tax-exempt state and political subdivisions	139,653		—		139,653		—
Total available for sale securities	$	328,723	$	—	$	328,723	$	—

Derivative financial assets
Interest rate swaps	$	312	$	—	$	312	$	—

Derivative financial liabilities
Interest rate swaps	$	2,057	$	—	$	2,057	$	—

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, 2018		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	221	$	—	$	221	$	—

Collateral-dependent impaired loans
Construction and development	$	941	$	—	$	941	$	—
Residential real estate	330		—		203		127
Total collateral-dependent impaired loans	$	1,271	$	—	$	1,144	$	127

Property held for sale
Commercial real estate	$	1,677	$	—	$	1,677	$	—
Construction and development	15,712		—		15,712		—
Residential real estate	462		—		462		—
Total property held for sale	$	17,851	$	—	$	17,851	$	—



	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2017		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	—	$	—	$	—	$	—

Collateral-dependent impaired loans
Commercial real estate	$	518	$	—	$	518	$	—
Construction and development	940		—		940		—
Residential real estate	203		—		203		—
Total collateral-dependent impaired loans	$	1,661	$	—	$	1,661	$	—

Property held for sale
Commercial real estate	$	1,493	$	—	$	1,493	$	—
Construction and development	16,177		—		16,177		—
Residential real estate	322		—		322		—
Total property held for sale	$	17,992	$	—	$	17,992	$	—

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



	March 31, 2018				Fair Value Measurements Using:
Dollars in thousands	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	47,407	$	47,407	$	—	$	47,407	$	—
Securities available for sale	296,890		296,890		—		296,890		—
Other investments	13,018		13,018		—		13,018		—
Loans held for sale, net	221		221		—		221		—
Loans, net	1,631,150		1,616,759		—		1,144		1,615,615
Accrued interest receivable	8,346		8,346		—		8,346		—
Derivative financial assets	764		764		—		764		—
	$	1,997,796	$	1,983,405	$	—	$	367,790	$	1,615,615
Financial liabilities
Deposits	$	1,654,523	$	1,676,651	$	—	$	1,676,651	$	—
Short-term borrowings	193,513		193,513		—		193,513		—
Long-term borrowings	45,747		46,096		—		46,096		—
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		—		19,589		—
Accrued interest payable	982		982		—		982		—
Derivative financial liabilities	1,116		1,116		—		1,116		—
	$	1,915,470	$	1,937,947	$	—	$	1,937,947	$	—



	December 31, 2017				Fair Value Measurements Using:
Dollars in thousands	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	52,631	$	52,631	$	—	$	52,631	$	—
Securities available for sale	328,723		328,723		—		328,723		—
Other investments	14,934		14,934		—		14,934		—
Loans held for sale, net	—		—		—		—		—
Loans, net	1,593,744		1,592,821		—		1,661		1,591,160
Accrued interest receivable	8,329		8,329		—		8,329		—
Derivative financial assets	312		312		—		312		—
	$	1,998,673	$	1,997,750	$	—	$	406,590	$	1,591,160
Financial liabilities
Deposits	$	1,600,601	$	1,620,033	$	—	$	1,620,033	$	—
Short-term borrowings	250,499		250,499		—		250,499		—
Long-term borrowings	45,751		46,530		—		46,530		—
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		—		19,589		—
Accrued interest payable	987		987		—		987		—
Derivative financial liabilities	2,057		2,057		—		2,057		—
	$	1,919,484	$	1,939,695	$	—	$	1,939,695	$	—