Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value of Assets and Liabilities

Summary of balances of the assets and liabilities measured at estimated fair value on a recurring basis

	September 30, 2019
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Trading securities
U.S. treasury and government agencies	$	—	$	—	$	—	$	—
Available-for-sale and equity securities
U.S. treasury and government agencies	$	—	$	21,602	$	—	$	21,602
Obligations of state and political agencies		—		47,856		—		47,856
Mortgage backed securities
Residential agency		—		169,337		—		169,337
Commercial		—		32,652		—		32,652
Asset backed securities		—		157		—		157
Corporate bonds		—		7,112		—		7,112
Equity securities		2,675		—		—		2,675
Total available-for-sale and equity securities	$	2,675	$	278,716	$	—	$	281,391
Other assets
Derivatives	$	—	$	2,483	$	—	$	2,483
Other liabilities
Derivatives	$	—	$	104	$	—	$	104

	December 31, 2018
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Trading securities
U.S. treasury and government agencies	$	—	$	1,539	$	—	$	1,539
Available-for-sale and equity securities
U.S. treasury and government agencies	$	—	$	19,142	$	—	$	19,142
Obligations of state and political agencies		—		66,387		—		66,387
Mortgage backed securities
Residential agency		—		126,998		—		126,998
Commercial		—		28,767		—		28,767
Asset backed securities		—		399		—		399
Corporate bonds		—		8,481		—		8,481
Equity securities		3,165		—		—		3,165
Total available-for-sale and equity securities	$	3,165	$	250,174	$	—	$	253,339
Other assets
Derivatives	$	—	$	12	$	—	$	12
Other liabilities
Derivatives	$	—	$	7	$	—	$	7

Schedule of net impairment losses related to nonrecurring estimated fair value measurements of certain assets

	September 30, 2019
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	66,021	$	—	$	66,021	$	—
Loans held for branch sale		—		—		—		—
Impaired loans		—		3,050		3,050		2,107
Foreclosed assets		—		84		84		—
Servicing rights		—		4,146		4,146		—

	December 31, 2018
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	14,486	$	—	$	14,486	$	—
Loans held for branch sale		—		32,031		32,031		—
Impaired loans		—		4,022		4,022		2,538
Foreclosed assets		—		204		204		245
Servicing rights		—		4,623		4,623		—

Schedule of valuation techniques and significant unobservable inputs used to measure Level 3 estimated fair values

			September 30, 2019
(dollars in thousands)						Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value	Range		Average
Impaired loans	Appraisal value	Property specific adjustment	3,050	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment	84	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions	4,146	154-270		194
		Discount rate		9.5	%	9.5	%

			December 31, 2018
(dollars in thousands)						Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value	Range		Average
Loans held for branch sale	Discounted cash flows	Sales agreement	32,031	N/A		N/A
Impaired loans	Appraisal value	Property specific adjustment	4,022	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment	204	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions	4,623	104 - 211		130
		Discount rate		10.5	%	10.5	%

Summary of estimated fair values and related carrying or notional amounts, of the Company’s financial instruments

	September 30, 2019
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	61,174	$	61,174	$	—	$	—	$	61,174
Loans		1,663,103		—		—		1,658,151		1,658,151
Accrued interest receivable		7,412		7,412		—		—		7,412
Bank-owned life insurance		31,364		—		31,364		—		31,364
Financial Liabilities
Noninterest-bearing transaction	$	537,951	$	—	$	537,951	$	—	$	537,951
Interest-bearing transaction		1,102,409		—		1,102,409		—		1,102,409
Time deposits		192,753		—		—		192,869		192,869
Short-term borrowings		—		—		—		—		—
Long-term debt		58,775		—		58,285		—		58,285
Accrued interest payable		1,879		1,879		—		—		1,879

	December 31, 2018
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	40,651	$	40,651	$	—	$	—	$	40,651
Loans		1,679,676		—		—		1,663,401		1,663,401
Accrued interest receivable		7,645		7,645		—		—		7,645
Bank-owned life insurance		30,763		—		30,763		—		30,763
Financial Liabilities
Noninterest-bearing transaction	$	550,640	$	—	$	550,640	$	—	$	550,640
Interest-bearing transaction		1,053,869		—		1,053,869		—		1,053,869
Time deposits		170,587		—		—		172,616		172,616
Deposits held for sale		24,197		—		—		22,019		22,019
Short-term borrowings		93,460		93,460		—		—		93,460
Long-term debt		58,824		—		59,988		—		59,988
Accrued interest payable		720		720		—		—		720