Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 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

	September 30, 2020
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale and securities
U.S. treasury and government agencies	$	—	$	16,092	$	—	$	16,092
Obligations of state and political agencies		—		147,216		—		147,216
Mortgage backed securities
Residential agency		—		211,700		—		211,700
Commercial		—		87,542		—		87,542
Asset backed securities		—		131		—		131
Corporate bonds		—		32,733		—		32,733
Total available-for-sale securities	$	—	$	495,414	$	—	$	495,414
Other assets
Derivatives	$	—	$	14,678	$	—	$	14,678
Other liabilities
Derivatives	$	—	$	1,960	$	—	$	1,960

	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

	September 30, 2020
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	111,311	$	—	$	111,311	$	—
Impaired loans		—		5,301		5,301		407
Foreclosed assets		—		10		10		—
Servicing rights		—		2,579		2,579		—

	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

			September 30, 2020
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Impaired loans	Appraisal value	Property specific adjustment	$	5,301	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment		10	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,579	315-485		396
		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

	September 30, 2020
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	95,751	$	95,751	$	—	$	—	$	95,751
Loans		2,027,082		—		—		2,075,044		2,075,044
Accrued interest receivable		9,199		9,199		—		—		9,199
Bank-owned life insurance		32,161		—		32,161		—		32,161
Financial Liabilities
Noninterest-bearing deposits	$	693,450	$	—	$	693,450	$	—	$	693,450
Interest-bearing deposits		1,561,498		—		1,561,498		—		1,561,498
Time deposits		207,422		—		—		208,990		208,990
Long-term debt		58,745		—		56,219		—		56,219
Accrued interest payable		1,408		1,408		—		—		1,408

	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