Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2018

Assets Measured at Fair Value on a Recurring Basis

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

(Dollars in thousands)	Fair Value Measurements Using						Total
September 30, 2018	Level 1		Level 2		Level 3		Fair Value
Securities available for sale
U.S. Government agency obligations	$	—	$	94,774	$	—	$	94,774
U.S. Treasury notes		—		1,905		—		1,905
Mortgage-backed securities, residential		—		30,581		—		30,581
Asset backed securities		—		10,805		—		10,805
State and municipal		—		144,062		—		144,062
Corporate bonds		—		68,986		—		68,986
SBA pooled securities		—		4,868		—		4,868
	$	—	$	355,981	$	—	$	355,981

Equity securities
Mutual fund	$	4,981	$	—	$	—	$	4,981

Loans held for sale	$	—	$	683	$	—	$	683

(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 September 30, 2018 and December 31, 2017.

(Dollars in thousands)	Fair Value Measurements Using						Total
September 30, 2018	Level 1		Level 2		Level 3		Fair Value
Impaired loans
Commercial real estate	$	—	$	—	$	5,450	$	5,450
Construction, land development, land		—		—		93		93
1-4 family residential properties		—		—		98		98
Farmland		—		—		842		842
Commercial		—		—		2,124		2,124
Factored receivables		—		—		4,925		4,925
Consumer		—		—		63		63
PCI		—		—		67		67
Other real estate owned⁽¹⁾
Commercial		—		—		819		819
	$	—	$	—	$	14,481	$	14,481

(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 year to date 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 September 30, 2018 and December 31, 2017 were as follows:

(Dollars in thousands)	Carrying		Fair Value Measurements Using						Total
September 30, 2018	Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	282,409	$	282,409	$	—	$	—	$	282,409
Securities - held to maturity		8,403		—		—		8,094		8,094
Loans not previously presented, gross		3,494,184		—		—		3,432,384		3,432,384
FHLB stock		23,109	N/A		N/A		N/A		N/A
Accrued interest receivable		20,141		20,141		—		—		20,141

Financial liabilities:
Deposits		3,439,049		—		3,428,722		—		3,428,722
Customer repurchase agreements		13,248		—		13,248		—		13,248
Federal Home Loan Bank advances		330,000		—		330,000		—		330,000
Subordinated notes		48,903		—		51,125		—		51,125
Junior subordinated debentures		38,966		—		41,057		—		41,057
Accrued interest payable		6,072		6,072		—		—		6,072

(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