Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value of Assets and Liabilities

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

	December 31, 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	$	—	$	21,240	$	—	$	21,240
Obligations of state and political agencies		—		68,648		—		68,648
Mortgage backed securities
Residential agency		—		182,538		—		182,538
Commercial		—		30,685		—		30,685
Asset backed securities		—		144		—		144
Corporate bonds		—		7,095		—		7,095
Equity securities		2,808		—		—		2,808
Total available-for-sale and equity securities	$	2,808	$	310,350	$	—	$	313,158
Other assets
Derivatives	$	—	$	1,621	$	—	$	1,621
Other liabilities
Derivatives	$	—	$	109	$	—	$	109

	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

	December 31, 2019
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	46,846	$	—	$	46,846	$	—
Loans held for branch sale		—		—		—		—
Impaired loans		—		4,816		4,816		3,138
Foreclosed assets		—		8		8		—
Servicing rights		—		3,845		3,845		—

	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		—		84		84		245
Servicing rights		—		4,623		4,623		—

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

			December 31, 2019
(dollars in thousands)						Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value	Range		Average
Impaired loans	Appraisal value	Property specific adjustment	4,816	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment	8	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions	3,845	123-267		194
		Discount rate		9.4	%	9.4	%

			December 31, 2018
(dollars in thousands)						Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value	Range		Average
Loans held for branch sale (1)	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	84	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions	4,623	104 - 211		130
		Discount rate		10.5	%	10.5	%

(1) The significant unobservable input related to the loans held for branch sale was the third party sales agreement the Bank entered into on January 15, 2019.

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

	December 31, 2019
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	144,006	$	144,006	$	—	$	—	$	144,006
Loans		1,697,355		—		—		1,693,824		1,693,824
Accrued interest receivable		7,551		7,551		—		—		7,551
Bank-owned life insurance		31,566		—		31,566		—		31,566
Financial Liabilities
Noninterest-bearing transaction	$	577,704	$	—	$	577,704	$	—	$	577,704
Interest-bearing transaction		1,197,530		—		1,197,530		—		1,197,530
Time deposits		196,082		—		—		196,182		196,182
Short-term borrowings		—		—		—		—		—
Long-term debt		58,769		—		58,239		—		58,239
Accrued interest payable		1,038		1,038		—		—		1,038

	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		1,879		1,879		—		—		1,879