FAIR VALUE DISCLOSURES

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis

The fair value of Level 3 available-for-sale securities was immaterial and thus did not require additional recurring fair value disclosure.

The table below presents the balances of assets measured at fair value on a nonrecurring basis:


	June 30, 2020
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Impaired loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	1,440	$	1,440
Non-working capital loans		0		0		5,862		5,862
Commercial real estate and multi-family residential loans:
Owner occupied loans		0		0		2,689		2,689
Agri-business and agricultural loans:
Loans secured by farmland		0		0		83		83
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		0		0		392		392
Open end and junior lien loans		0		0		612		612
Residential construction loans		0		0		42		42
Total impaired loans	$	0	$	0	$	11,120	$	11,120
Other real estate owned		0		0		0		0
Mortgage servicing rights, net of valuation allowance		0		3,458		0		3,458
Total assets	$	0	$	3,458	$	11,120	$	14,578


	December 31, 2019
	Fair Value Measurements Using						Assets
(dollars in thousands)	Level 1		Level 2		Level 3		at Fair Value
Assets
Impaired loans:
Commercial and industrial loans:
Working capital lines of credit loans	$	0	$	0	$	3,126	$	3,126
Non-working capital loans		0		0		6,374		6,374
Commercial real estate and multi-family residential loans:
Construction and land development loans		0		0		43		43
Owner occupied loans		0		0		1,449		1,449
Agri-business and agricultural loans:
Loans secured by farmland		0		0		57		57
Consumer 1‑4 family mortgage loans:
Closed end first mortgage loans		0		0		474		474
Open end and junior lien loans		0		0		587		587
Other consumer loans		0		0		11		11
Total impaired loans	$	0	$	0	$	12,121	$	12,121
Other real estate owned		0		0		0		0
Total assets	$	0	$	0	$	12,121	$	12,121

Schedule of Fair Values and the Related Carrying Values of Financial Instruments

The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments. Items which are not financial instruments are not included.

June 30, 2020

Carrying

Estimated Fair Value

(dollars in thousands)

Value

Level 1

Level 2

Level 3

Total

Financial Assets:

Cash and cash equivalents

$

126,335

$

123,710

$

2,925

$

0

$

126,635

Securities available-for-sale

632,908

0

632,763

145

632,908

Real estate mortgages held-for-sale

16,640

0

17,163

0

17,163

Loans, net

4,431,513

0

4,424,759

Federal Reserve and Federal Home Loan Bank Stock

13,772

N/A

Accrued interest receivable

15,850

0

3,447

12,403

15,850

Financial Liabilities:

Certificates of deposit

(1,169,231)

0

(1,182,018)

0

(1,182,018)

All other deposits

(3,474,196)

0

(3,474,196)

Federal funds purchased

(25,000)

0

(25,000)

0

(25,000)

Other short-term borrowings

(10,500)

0

(10,500)

0

(10,500)

Federal Home Loan Bank advances

(75,000)

0

(68,431)

0

(68,431)

Standby letters of credit

(696)

0

(696)

Accrued interest payable

(8,446)

(60)

(8,386)

0

(8,446)


	December 31, 2019
	Carrying		Estimated Fair Value
(dollars in thousands)	Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents	$	99,381	$	96,603	$	2,778	$	0	$	99,381
Securities available-for-sale		608,233		0		608,088		145		608,233
Real estate mortgages held-for-sale		4,527		0		4,614		0		4,614
Loans, net		4,015,176		0		0		3,979,006		3,979,006
Federal Reserve and Federal Home Loan Bank Stock		13,772		N/A		N/A		N/A		N/A
Accrued interest receivable		15,391		0		3,729		11,662		15,391
Financial Liabilities:
Certificates of deposit		(1,192,067)		0		(1,202,060)		0		(1,202,060)
All other deposits		(2,941,752)		(2,941,752)		0		0		(2,941,752)
Federal Home Loan Bank advances		(170,000)		0		(169,998)		0		(169,998)
Standby letters of credit		(915)		0		0		(915)		(915)
Accrued interest payable		(11,604)		(102)		(11,502)		0		(11,604)