Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value of Assets and Liabilities

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

	June 30, 2020
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale and securities
U.S. treasury and government agencies	$	—	$	16,252	$	—	$	16,252
Obligations of state and political agencies		—		114,153		—		114,153
Mortgage backed securities
Residential agency		—		214,707		—		214,707
Commercial		—		27,926		—		27,926
Asset backed securities		—		135		—		135
Corporate bonds		—		20,554		—		20,554
Total available-for-sale securities	$	—	$	393,727	$	—	$	393,727
Other assets
Derivatives	$	—	$	7,111	$	—	$	7,111
Other liabilities
Derivatives	$	—	$	1,321	$	—	$	1,321

	December 31, 2019
(dollars in thousands)	Level 1		Level 2		Level 3		Total
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

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

	June 30, 2020
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	101,751	$	—	$	101,751	$	—
Impaired loans		—		5,670		5,670		549
Foreclosed assets		—		26		26		—
Servicing rights		—		2,891		2,891		—

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

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

			June 30, 2020
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Impaired loans	Appraisal value	Property specific adjustment	$	5,670	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment		26	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,891	268-425		237
		Discount rate			9.0	%	9.0	%

			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	%

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

	June 30, 2020
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	210,437	$	210,437	$	—	$	—	$	210,437
Loans		2,006,941		—		—		2,035,211		2,035,211
Accrued interest receivable		7,975		7,975		—		—		7,975
Bank-owned life insurance		31,959		—		31,959		—		31,959
Financial Liabilities
Noninterest-bearing deposits	$	700,892	$	—	$	700,892	$	—	$	700,892
Interest-bearing deposits		1,548,530		—		1,548,530		—		1,548,530
Time deposits		203,731		—		—		205,086		205,086
Long-term debt		58,754		—		56,670		—		56,670
Accrued interest payable		799		799		—		—		799

	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 deposits	$	577,704	$	—	$	577,704	$	—	$	577,704
Interest-bearing deposits		1,197,530		—		1,197,530		—		1,197,530
Time deposits		196,082		—		—		196,182		196,182
Long-term debt		58,769		—		58,239		—		58,239
Accrued interest payable		1,038		1,038		—		—		1,038