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Fair Value Measurements
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements
FAIR VALUE MEASUREMENTS

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, 2019
 
Level 1
 
Level 2
 
Level 3
Securities available for sale
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
23,724

 
$

 
$
23,724

 
$

Mortgage backed securities:
 

 
 

 
 

 
 

Government sponsored agencies
75,334

 

 
75,334

 

Nongovernment sponsored entities
9,170

 

 
9,170

 

State and political subdivisions
23,365

 

 
23,365

 

Corporate debt securities
16,972

 

 
16,972

 

Asset-backed securities
33,452

 

 
33,452

 

Tax-exempt state and political subdivisions
87,903

 

 
87,903

 

Total securities available for sale
$
269,920

 
$

 
$
269,920

 
$

 
 
 
 
 
 
 
 
Derivative financial assets
 
 
 
 
 
 
 
Interest rate swaps
$

 
$

 
$

 
$

 
 
 
 
 
 
 
 
Derivative financial liabilities
 

 
 

 
 

 
 

Interest rate swaps
$
1,247

 
$

 
$
1,247

 
$



 
Balance at
 
Fair Value Measurements Using:
Dollars in thousands
December 31, 2018
 
Level 1
 
Level 2
 
Level 3
Securities available for sale
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
26,140

 
$

 
$
26,140

 
$

Mortgage backed securities:
 

 
 

 
 

 
 

Government sponsored agencies
80,309

 

 
80,309

 

Nongovernment sponsored entities
614

 

 
614

 

State and political subdivisions
19,243

 

 
19,243

 

Corporate debt securities
14,512

 

 
14,512

 

Asset-backed securities
25,175

 

 
25,175

 

Tax-exempt state and political subdivisions
127,154

 

 
127,154

 

Total securities available for sale
$
293,147

 
$

 
$
293,147

 
$

 
 
 
 
 
 
 
 
Derivative financial assets
 
 
 
 
 
 
 
Interest rate swaps
$
555

 
$

 
$
555

 
$

 
 
 
 
 
 
 
 
Derivative financial liabilities
 

 
 

 
 

 
 

Interest rate swaps
$
411

 
$

 
$
411

 
$




We may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles.  These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period.  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, 2019
 
Level 1
 
Level 2
 
Level 3
Residential mortgage loans held for sale
$
314

 
$

 
$
314

 
$

 
 
 
 
 
 
 
 
Collateral-dependent impaired loans
 

 
 

 
 

 
 

Commercial
$
238

 
$

 
$
8

 
$
230

Commercial real estate
420

 
$

 
420

 

Construction and development
515

 
$

 
515

 

Residential real estate
717

 

 
646

 
71

Total collateral-dependent impaired loans
$
1,890

 
$

 
$
1,589

 
$
301

 
 
 
 
 
 
 
 
Property held for sale
 

 
 

 
 

 
 

Commercial real estate
$
1,414

 
$

 
$
1,414

 
$

Construction and development
14,427

 

 
14,427

 

Residential real estate
783

 

 
783

 

Total property held for sale
$
16,624

 
$

 
$
16,624

 
$



 
Balance at
 
Fair Value Measurements Using:
Dollars in thousands
December 31, 2018
 
Level 1
 
Level 2
 
Level 3
Residential mortgage loans held for sale
$
400

 
$

 
$
400

 
$

 
 
 
 
 
 
 
 
Collateral-dependent impaired loans
 

 
 

 
 

 
 

Commercial
$
2,660

 
$

 
$
2,611

 
$
49

Commercial real estate
420

 

 
420

 

Construction and development
759

 

 
759

 

Residential real estate
763

 

 
763

 

Total collateral-dependent impaired loans
$
4,602

 
$

 
$
4,553

 
$
49

 
 
 
 
 
 
 
 
Property held for sale
 

 
 

 
 

 
 

Commercial real estate
$
1,677

 
$

 
$
1,677

 
$

Construction and development
16,363

 

 
16,363

 

Residential real estate
403

 

 
403

 

Total property held for sale
$
18,443

 
$

 
$
18,443

 
$




The carrying values and estimated fair values of our financial instruments are summarized below:
 
 
June 30, 2019
 
Fair Value Measurements Using:
Dollars in thousands
 
Carrying
Value
 
Estimated
Fair
Value
 
Level 1
Level 2
Level 3
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
56,475

 
$
56,475

 
$

$
56,475

$

Securities available for sale
 
269,920

 
269,920

 

269,920


Other investments
 
14,238

 
14,238

 

14,238


Loans held for sale, net
 
314

 
314

 

314


Loans, net
 
1,805,850

 
1,808,046

 

1,589

1,806,457

Accrued interest receivable
 
8,909

 
8,909

 

8,909


Derivative financial assets
 

 

 



 
 
$
2,155,706

 
$
2,157,902

 
$

$
351,445

$
1,806,457

Financial liabilities
 
 

 
 

 
 

 

 
Deposits
 
$
1,797,493

 
$
1,803,314

 
$

$
1,803,314

$

Short-term borrowings
 
225,343

 
225,343

 

225,343


Long-term borrowings
 
726

 
867

 

867


Subordinated debentures owed to unconsolidated subsidiary trusts
 
19,589

 
19,589

 

19,589


Accrued interest payable
 
1,370

 
1,370

 

1,370


Derivative financial liabilities
 
1,247

 
1,247

 

1,247


 
 
$
2,045,768

 
$
2,051,730

 
$

$
2,051,730

$



 
 
December 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
 
$
59,540

 
$
59,540

 
$

$
59,540

$

Securities available for sale
 
293,147

 
293,147

 

293,147


Other investments
 
16,635

 
16,635

 

16,635


Loans held for sale, net
 
400

 
400

 

400


Loans, net
 
1,682,005

 
1,666,834

 

4,553

1,662,281

Accrued interest receivable
 
8,708

 
8,708

 

8,708


Derivative financial assets
 
555

 
555

 

555


 
 
$
2,060,990

 
$
2,045,819

 
$

$
383,538

$
1,662,281

Financial liabilities
 
 

 
 

 
 

 

 
Deposits
 
$
1,634,826

 
$
1,631,456

 
$

$
1,631,456

$

Short-term borrowings
 
309,084

 
309,084

 

309,084


Long-term borrowings
 
735

 
843

 

843


Subordinated debentures owed to unconsolidated subsidiary trusts
 
19,589

 
19,589

 

19,589


Accrued interest payable
 
1,102

 
1,102

 

1,102


Derivative financial liabilities
 
411

 
411

 

411


 
 
$
1,965,747

 
$
1,962,485

 
$

$
1,962,485

$