FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2019

FAIR VALUES OF ASSETS AND LIABILITIES

Schedule of assets measured at fair value on a recurring basis

The following table presents the Company’s securities that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of December 31, 2019 and 2018 ($ in thousands):

December 31, 2019	Fair Value Measurements
($ in thousands)			Quoted Prices in		Significant
			Active Markets		Other		Significant
			For		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available-for-sale
U.S Treasury	$	4,894	$	4,894	$	—	$	—
Obligations of U.S. government agencies and sponsored entities		77,950		—		77,950	$	—
Municipal securities		258,982		—		248,637		10,345
Mortgage-backed securities		395,315		—		395,315		—
Corporate obligations		27,946		—		27,538		408
Total available for sale	$	765,087	$	4,894	$	749,440	$	10,753

December 31, 2018	Fair Value Measurements
($ in thousands)			Quoted Prices in		Significant
			Active Markets		Other		Significant
			For		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available-for-sale
Obligations of U.S. government agencies and sponsored entities	$	47,342	$	—	$	47,342	$	—
Municipal securities		150,064		—		142,490		7,574
Mortgage-backed securities		287,470		—		287,470		—
Corporate obligations		7,348		—		6,474		874
Total available for sale	$	492,224	$	—	$	483,776	$	8,448

Schedule of reconciliation of activity for assets measured at fair value

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (Level 3) information.

	Bank-Issued Trust
	Preferred
	Securities
($ in thousands)	2019		2018
Balance, January 1	$	874	$	2,569
Unrealized loss included in comprehensive income		(466)		(1,695)
Balance at December 31, 2019 and 2018	$	408	$	874

	Municipal Securities
($ in thousands)	2019		2018
Balance, January 1	$	7,574	$	4,818
Unrealized gain included in comprehensive income		2,771		2,756
Balance at December 31, 2019 and 2018	$	10,345	$	7,574

Schedule of quantitative information about recurring Level 3 fair value measurements

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at December 31, 2019 and 2018. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands):

Trust Preferred				Significant Unobservable
Securities	Fair Value		Valuation Technique	Inputs	Range of Inputs
December 31, 2019	$	408	Discounted cash flow	Discount rate	2.73% - 4.15%
December 31, 2018	$	874	Discounted cash flow	Discount rate	3.71% - 5.03%

				Significant Unobservable
Municipal Securities	Fair Value		Valuation Technique	Inputs	Range of Inputs
December 31, 2019	$	10,345	Discounted cash flow	Discount rate	1.50% - 4.40%
December 31, 2018	$	7,574	Discounted cash flow	Discount rate	2.00% - 3.50%

Schedule of fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy

	Fair Value Measurements Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			For		Observable		Unobservable
			Identical Assets		Inputs		Inputs
($ in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2019
Impaired loans	$	11,337	$	—	$	—	$	11,337
Other real estate owned		7,299		—		—		7,299
December 31, 2018
Impaired loans	$	11,571	$	—	$	—	$	11,571
Other real estate owned		10,869		—		—		10,869

Schedule of estimated fair values

	Fair Value Measurements
							Significant		Significant
					Quoted		Other  Observable		Unobservable
December 31, 2019	Carrying		Estimated		Prices		Inputs		Inputs
($ in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents	$	168,864	$	168,864	$	168,864	$	—	$	—
Securities available-for-sale		765,087		765,087		4,894		749,440		10,753
Loans, net		2,597,260		2,560,668		—		—		2,560,668
Accrued interest receivable		14,802		14,802		—		4,246		10,556
Liabilities:
Non-interest-bearing deposits	$	723,208	$	723,208	$	—	$	723,208	$	—
Interest-bearing deposits		2,353,325		2,339,537		—		2,339,537		—
Subordinated debentures		80,678		80,330		—		—		80,330
FHLB and other borrowings		214,319		214,319		—		214,319		—
Accrued interest payable		2,508		2,508		—		2,508		—

	Fair Value Measurements
							Significant		Significant
					Quoted		Other  Observable		Unobservable
December 31, 2018	Carrying		Estimated		Prices		Inputs		Inputs
($ in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents	$	159,107	$	159,107	$	159,107	$	—	$	—
Securities available-for-sale		492,224		492,224		—		483,776		8,448
Securities held-to-maturity		6,000		7,028		—		7,028		—
Loans, net		2,055,195		2,020,782		—		—		2,020,782
Accrued interest receivable		10,778		10,778		—		2,673		8,105
Liabilities:
Non-interest-bearing deposits	$	570,148	$	570,148	$	—	$	570,148	$	—
Interest-bearing deposits		1,887,311		1,855,637		—		1,855,637		—
Subordinated debentures		80,521		76,986		—		—		76,986
FHLB and other borrowings		85,500		85,500		—		85,500		—
Accrued interest payable		1,519		1,519		—		1,519		—