Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020		Level 1		Level 2		Level 3
Securities available for sale
U.S. Government sponsored agencies	$	40,366	$	—	$	40,366	$	—
Mortgage backed securities:
Government sponsored agencies	68,927		—		68,927		—
Nongovernment sponsored entities	11,076		—		11,076		—
State and political subdivisions	50,511		—		50,511		—
Corporate debt securities	19,590		—		19,590		—
Asset-backed securities	40,061		—		40,061		—
Tax-exempt state and political subdivisions	74,514		—		74,514		—
Total securities available for sale	$	305,045	$	—	$	305,045	$	—

Derivative financial liabilities
Interest rate swaps	$	3,477	$	—	$	3,477	$	—



	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2019		Level 1		Level 2		Level 3
Securities available for sale
U.S. Government sponsored agencies	$	20,864	$	—	$	20,864	$	—
Mortgage backed securities:
Government sponsored agencies	70,975		—		70,975		—
Nongovernment sponsored entities	10,229		—		10,229		—
State and political subdivisions	49,973		—		49,973		—
Corporate debt securities	18,200		—		18,200		—
Asset-backed securities	33,014		—		33,014		—
Tax-exempt state and political subdivisions	73,100		—		73,100		—
Total securities available for sale	$	276,355	$	—	$	276,355	$	—

Derivative financial liabilities
Interest rate swaps	$	988	$	—	$	988	$	—

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, 2020		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	647	$	—	$	647	$	—

Collateral-dependent loans with an ACLL
Commercial	$	8	$	—	$	8	$	—
Commercial real estate	1,863		—		1,863		—
Construction and development	429		—		429		—
Residential real estate	196		—		196		—
Total collateral-dependent loans with an ACLL	$	2,496	$	—	$	2,496	$	—

Property held for sale
Commercial real estate	$	1,217	$	—	$	1,217	$	—
Construction and development	11,676		—		11,676		—
Residential real estate	557		—		557		—
Total property held for sale	$	13,450	$	—	$	13,450	$	—

Collateral dependent loans with an ACLL were categorized as impaired loans with specific reserves prior to the adoption of ASC 326.



	Balance at		Fair Value Measurements Using:
Dollars in thousands	December 31, 2019		Level 1		Level 2		Level 3
Residential mortgage loans held for sale	$	1,319	$	—	$	1,319	$	—

Collateral-dependent impaired loans
Commercial	$	4,831	$	—	$	4,831	$	—
Commercial real estate	1,863		—		1,863		—
Construction and development	425		—		425		—
Residential real estate	692		—		566		126
Total collateral-dependent impaired loans	$	7,811	$	—	$	7,685	$	126

Property held for sale
Commercial real estate	$	1,304	$	—	$	1,304	$	—
Construction and development	12,182		—		12,182		—
Residential real estate	705		—		705		—
Total property held for sale	$	14,191	$	—	$	14,191	$	—

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



	March 31, 2020				Fair Value Measurements Using:
Dollars in thousands	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	41,454	$	41,454	$	—	$	41,454	$	—
Securities available for sale	305,045		305,045		—		305,045		—
Other investments	11,804		11,804		—		11,804		—
Loans held for sale, net	647		647		—		647		—
Loans, net	1,982,661		1,981,162		—		2,496		1,978,666
Accrued interest receivable	9,043		9,043		—		9,043		—
Cash surrender value of life insurance policies	46,497		46,497		—		46,497		—
	$	2,397,151	$	2,395,652	$	—	$	416,986	$	1,978,666
Financial liabilities
Deposits	$	2,044,914	$	2,054,077	$	—	$	2,054,077	$	—
Short-term borrowings	161,745		161,745		—		161,745		—
Long-term borrowings	712		888		—		888		—
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		—		19,589		—
Accrued interest payable	1,096		1,096		—		1,096		—
Derivative financial liabilities	3,477		3,477		—		3,477		—
	$	2,231,533	$	2,240,872	$	—	$	2,240,872	$	—



	December 31, 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	$	61,888	$	61,888	$	—	$	61,888	$	—
Securities available for sale	276,355		276,355		—		276,355		—
Other investments	12,972		12,972		—		12,972		—
Loans held for sale, net	1,319		1,319		—		1,319		—
Loans, net	1,900,425		1,901,020		—		7,685		1,893,335
Accrued interest receivable	8,439		8,439		—		8,439		—
Cash surrender value of life insurance policies	43,603		43,603		—		43,603		—
	$	2,305,001	$	2,305,596	$	—	$	412,261	$	1,893,335
Financial liabilities
Deposits	$	1,913,237	$	1,918,610	$	—	$	1,918,610	$	—
Short-term borrowings	199,345		199,345		—		199,345		—
Long-term borrowings	717		854		—		854		—
Subordinated debentures owed to unconsolidated subsidiary trusts	19,589		19,589		—		19,589		—
Accrued interest payable	1,234		1,234		—		1,234		—
Derivative financial liabilities	988		988		—		988		—
	$	2,135,110	$	2,140,620	$	—	$	2,140,620	$	—