Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value of Assets and Liabilities

Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis

	March 31, 2021
	Fair Value Measurements Classified as						Assets/Liabilities at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	53,681	$	—	$	53,681
Mortgage-backed securities		—		150,518		—		150,518
Obligations of states and political subdivisions		—		103,154		—		103,154
Corporate and other debt securities		—		13,932		—		13,932
Total securities available for sale		—		321,285		—		321,285
Loans held for sale		—		177,350		—		177,350
Derivatives
IRLC		—		4,026		—		4,026
Interest rate swaps on loans		—		4,841		—		4,841
Forward sales of TBA securities		—		75		—		75
Total assets	$	—	$	507,577	$	—	$	507,577
Liabilities:
Derivatives
Interest rate swaps on loans	$	—	$	4,841	$	—	$	4,841
Cash flow hedges		—		891		—		891
Total liabilities	$	—	$	5,732	$	—	$	5,732

	December 31, 2020
	Fair Value Measurements Classified as						Assets/Liabilities at
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value
Assets:
Securities available for sale
U.S. government agencies and corporations	$	—	$	48,282	$	—	$	48,282
Mortgage-backed securities		—		123,714		—		123,714
Obligations of states and political subdivisions		—		102,805		—		102,805
Corporate and other debt securities		—		11,588		—		11,588
Total securities available for sale		—		286,389		—		286,389
Loans held for sale		—		214,266		—		214,266
Derivatives
IRLC		—		4,582		—		4,582
Interest rate swaps on loans		—		8,185		—		8,185
Total assets	$	—	$	513,422	$	—	$	513,422
Liabilities:
Derivatives
Interest rate swaps on loans	$	—	$	8,185	$	—	$	8,185
Cash flow hedges		—		1,882		—		1,882
Forward sales of TBA securities		—		47		—		47
Total liabilities	$	—	$	10,114	$	—	$	10,114

Schedule of balances of assets measured at fair value on a nonrecurring basis

	March 31, 2021
	Fair Value Measurements Classified as						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Other real estate owned, net	$	—	$	—	$	72	$	72
Total	$	—	$	—	$	72	$	72

	December 31, 2020
	Fair Value Measurements Classified as						Assets at Fair
(Dollars in thousands)	Level 1		Level 2		Level 3		Value
Other real estate owned, net	$	—	$	—	$	72	$	72
Total	$	—	$	—	$	72	$	72

Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis

	Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range (Weighted Average)1
At March 31, 2021:
Other real estate owned, net	$	72	Appraisals	Discount to reflect current market conditions and estimated selling costs	75%-80% (79%)
Total	$	72
At December 31, 2020:
Other real estate owned, net	$	72	Appraisals	Discount to reflect current market conditions and estimated selling costs	75% - 80% (79%)
Total	$	72

1 The weighted average of unobservable inputs is calculated based on the relative asset fair values.

Schedule of carrying amounts and estimated fair values of financial instruments

	Carrying		Fair Value Measurements at March 31, 2021 Classifed as						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	147,438	$	147,438	$	—	$	—	$	147,438
Securities available for sale		321,285		—		321,285		—		321,285
Loans, net		1,346,003		—		—		1,331,249		1,331,249
Loans held for sale		177,350		—		177,350		—		177,350
Derivatives
IRLC		4,026		—		4,026		—		4,026
Interest rate swaps on loans		4,841		—		4,841		—		4,841
Forward sales of TBA securities		75		—		75		—		75
Bank-owned life insurance		20,332		—		20,332		—		20,332
Accrued interest receivable		7,723		7,723		—		—		7,723
Financial liabilities:
Demand and savings deposits		1,373,882		1,373,882		—		—		1,373,882
Time deposits		458,100		—		461,981		—		461,981
Borrowings		73,328		—		72,267		—		72,267
Derivatives
Cash flow hedges		891		—		891		—		891
Interest rate swaps on loans		4,841		—		4,841		—		4,841
Accrued interest payable		734		734		—		—		734

	Carrying		Fair Value Measurements at December 31, 2020 Classifed as						Total Fair
(Dollars in thousands)	Value		Level 1		Level 2		Level 3		Value
Financial assets:
Cash and short-term investments	$	86,669	$	86,669	$	—	$	—	$	86,669
Securities available for sale		286,389		—		286,389		—		286,389
Loans, net		1,313,250		—		—		1,308,569		1,308,569
Loans held for sale		214,266		—		214,266		—		214,266
Derivatives
IRLC		4,582		—		4,582		—		4,582
Interest rate swaps on loans		8,185		—		8,185		—		8,185
Bank-owned life insurance		20,205		—		20,205		—		20,205
Accrued interest receivable		8,103		8,103		—		—		8,103
Financial liabilities:
Demand and savings deposits		1,282,590		1,282,590		—		—		1,282,590
Time deposits		469,583		—		474,154		—		474,154
Borrowings		69,864		—		71,119		—		71,119
Derivatives
Cash flow hedges		1,882		—		1,882		—		1,882
Interest rate swaps on loans		8,185		—		8,185		—		8,185
Forward sales of TBA securities		47		—		47				47
Accrued interest payable		1,109		1,109		—		—		1,109