Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2018

Assets Measured at Fair Value on a Recurring Basis

There were no liabilities measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017.

(Dollars in thousands)	Fair Value Measurements Using						Total
June 30, 2018	Level 1		Level 2		Level 3		Fair Value
Securities available for sale
U.S. Government agency obligations	$	—	$	95,665	$	—	$	95,665
U.S. Treasury notes		—		1,911		—		1,911
Mortgage-backed securities, residential		—		30,238		—		30,238
Asset backed securities		—		10,666		—		10,666
State and municipal		—		35,613		—		35,613
Corporate bonds		—		5,754		—		5,754
SBA pooled securities		—		3,337		—		3,337
	$	—	$	183,184	$	—	$	183,184

Equity securities
Mutual fund	$	5,025	$	—	$	—	$	5,025

(Dollars in thousands)	Fair Value Measurements Using						Total
December 31, 2017	Level 1		Level 2		Level 3		Fair Value
Securities available for sale
U.S. Government agency obligations	$	—	$	109,890	$	—	$	109,890
U.S. Treasury notes		—		1,934		—		1,934
Mortgage-backed securities, residential		—		33,663		—		33,663
Asset backed securities		—		11,845		—		11,845
State and municipal		—		74,391		—		74,391
Corporate bonds		—		15,320		—		15,320
SBA pooled securities		—		3,560		—		3,560
	$	—	$	250,603	$	—	$	250,603

Equity securities
Mutual fund	$	5,006	$	—	$	—	$	5,006

Fair Value of Assets Measured on Non-recurring Basis

There were no liabilities measured at fair value on a non-recurring basis at June 30, 2018 and December 31, 2017.

(Dollars in thousands)	Fair Value Measurements Using						Total
June 30, 2018	Level 1		Level 2		Level 3		Fair Value
Impaired loans
Commercial real estate	$	—	$	—	$	4,295	$	4,295
Construction, land development, land		—		—		67		67
1-4 family residential properties		—		—		96		96
Farmland		—		—		842		842
Commercial		—		—		12,782		12,782
Factored receivables		—		—		3,072		3,072
Consumer		—		—		120		120
PCI		—		—		75		75
Other real estate owned⁽¹⁾
Commercial		—		—		515		515
	$	—	$	—	$	21,864	$	21,864

(Dollars in thousands)	Fair Value Measurements Using						Total
December 31, 2017	Level 1		Level 2		Level 3		Fair Value
Impaired loans
Commercial real estate	$	—	$	—	$	42	$	42
1-4 family residential properties		—		—		85		85
Commercial		—		—		7,785		7,785
Factored receivables		—		—		3,777		3,777
Consumer		—		—		191		191
Other real estate owned⁽¹⁾
Commercial		—		—		138		138
Construction, land development, land		—		—		202		202
	$	—	$	—	$	12,220	$	12,220

⁽¹⁾ Represents the fair value of OREO that was adjusted during the period and subsequent to its initial classification as OREO.

Estimated Fair Value of Company's Financial Assets and Financial Liabilities

The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at June 30, 2018 and December 31, 2017 were as follows:

(Dollars in thousands)	Carrying		Fair Value Measurements Using						Total
June 30, 2018	Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	133,365	$	133,365	$	—	$	—	$	133,365
Securities - held to maturity		8,673		—		—		8,093		8,093
Loans not previously presented, gross		3,170,647		—		—		3,156,021		3,156,021
FHLB stock		19,223	N/A		N/A		N/A		N/A
Accrued interest receivable		15,193		15,193		—		—		15,193

Financial liabilities:
Deposits		2,624,942		—		2,616,370		—		2,616,370
Customer repurchase agreements		10,509		—		10,509		—		10,509
Federal Home Loan Bank advances		420,000		—		420,000		—		420,000
Subordinated notes		48,878		—		50,841		—		50,841
Junior subordinated debentures		38,849		—		40,795		—		40,795
Accrued interest payable		4,380		4,380		—		—		4,380

(Dollars in thousands)	Carrying		Fair Value Measurements Using						Total
December 31, 2017	Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	134,129	$	134,129	$	—	$	—	$	134,129
Securities - held to maturity		8,557		—		—		7,527		7,527
Loans not previously presented, net		2,780,228		—		—		2,800,362		2,800,362
Loans included in assets held for sale, net		68,668		—		—		69,268		69,268
FHLB stock		16,006	N/A		N/A		N/A		N/A
Accrued interest receivable		15,517		15,517		—		—		15,517

Financial liabilities:
Deposits		2,621,348		—		2,616,034		—		2,616,034
Customer repurchase agreements		11,488		—		11,488		—		11,488
Federal Home Loan Bank advances		365,000		—		365,000		—		365,000
Subordinated notes		48,828		—		52,310		—		52,310
Junior subordinated debentures		38,623		—		41,563		—		41,563
Accrued interest payable		3,323		3,323		—		—		3,323