XML 35 R22.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Fair Value of Assets and Liabilities (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2018
Fair Value Disclosures [Abstract] |
Assets Measured at Fair Value on Recurring Basis | The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of June 30, 2018 and December 31, 2017 (in thousands):
|  |  | Fair Value Measurements Using
| Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
June 30, 2018 |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 123,038 |  |  | $ | — |  |  | $ | 123,038 |  |  | $ | — |
Obligations of states and political subdivisions | 175,240 |  |  | — |  |  | 175,240 |  |  | — |
Mortgage-backed securities | 315,671 |  |  | — |  |  | 315,671 |  |  | — |
Trust preferred securities | — |  |  | — |  |  | — |  |  | — |
Other securities | 2,354 |  |  | 341 |  |  | 2,013 |  |  | — |
Total available-for-sale securities | $ | 616,303 |  |  | $ | 341 |  |  | $ | 615,962 |  |  | $ | — |
December 31, 2017 |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 113,770 |  |  | $ | — |  |  | $ | 113,770 |  |  | $ | — |
Obligations of states and political subdivisions | 166,266 |  |  | — |  |  | 166,266 |  |  | — |
Mortgage-backed securities | 293,811 |  |  | — |  |  | 293,811 |  |  | — |
Trust preferred securities | 2,548 |  |  | — |  |  | — |  |  | 2,548 |
Other securities | 2,184 |  |  | 172 |  |  | 2,012 |  |  | — |
Total available-for-sale securities | $ | 578,579 |  |  | $ | 172 |  |  | $ | 575,859 |  |  | $ | 2,548 |
Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs | The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2018 and 2017 is summarized as follows (in thousands):
|  | Trust Preferred Securities
|  | Three months ended |  | Six months ended
|  | June 30, 2018 |  | June 30, 2017 |  | June 30, 2018 |  | June 30, 2017
Beginning balance |  | $ | 2,522 |  |  | $ | 1,638 |  |  | $ | 2,548 |  |  | $ | 1,652 |
Transfers into Level 3 |  | — |  |  | — |  |  | — |  |  | — |
Transfers out of Level 3 |  | — |  |  | — |  |  | — |  |  | — |
Total gains or losses: |  |  |  |  |  |  |  |
Included in net income |  | — |  |  | — |  |  | — |  |  | — |
Included in other comprehensive income (loss) |  | — |  |  | 825 |  |  | 18 |  |  | 848 |
Purchases, issuances, sales and settlements: |  |  |  |  |  |  |  |  |
Purchases |  | — |  |  | — |  |  | — |  |  | — |
Issuances |  | — |  |  | — |  |  | — |  |  | — |
Sales |  | (2,522 | ) |  | — |  |  | (2,522 | ) |  | — |
Settlements |  |  |  |  | (39 | ) |  | (44 | ) |  | (76 | )
Ending balance |  | $ | — |  |  | $ | 2,424 |  |  | $ | — |  |  | $ | 2,424 |
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2018 and December 31, 2017 (in thousands):
| Fair Value Measurements Using
| Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
June 30, 2018 |  |  |  |  |  |  |
Impaired loans (collateral dependent) | $ | 20,756 |  |  | $ | — |  |  | $ | — |  |  | $ | 20,756 |
Foreclosed assets held for sale | 163 |  |  | — |  |  | — |  |  | 163 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |
Impaired loans (collateral dependent) | $ | 3,053 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,053 |
Foreclosed assets held for sale | 91 |  |  | — |  |  | — |  |  | 91 |
Significant Assumptions Used in Valuation of Level 3 Financial Instruments | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill at June 30, 2017 and December 31, 2016 (in thousands).
June 30, 2018 | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Range (Weighted Average)
Impaired loans (collateral dependent) | $ | 20,756 |  |  | Third party valuations |  | Discount to reflect realizable value |  | 0 | % | - | 40% | ( | 20% | )
Foreclosed assets held for sale | $ | 163 |  |  | Third party valuations |  | Discount to reflect realizable value less estimated selling costs |  | 0 | % | - | 40% | ( | 35% | )
December 31, 2017 | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Range (Weighted Average)
Trust Preferred Securities | $ | 2,548 |  |  | Discounted cash flow |  | Discount rate |  | 12.7% |  |  |
Constant prepayment rate (1) |  | 1.3% |  |  |
Cumulative projected prepayments |  | 21.6% |  |  |
Probability of default |  | 0.5% |  |  |
Projected cures given deferral |  | 0.0% |  |  |
Loss severity |  | 97.7% |  |  |
Impaired loans (collateral dependent) | $ | 3,053 |  |  | Third party valuations |  | Discount to reflect realizable value |  | 0 | % | - | 40% | ( | 20% | )
Foreclosed assets held for sale | $ | 91 |  |  | Third party valuations |  | Discount to reflect realizable value less estimated selling costs |  | 0 | % | - | 40% | ( | 35% | )
(1) Every five years
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | The following tables present estimated fair values of the Company’s financial instruments at June 30, 2018 and December 31, 2017 in accordance with FAS 107-1 and APB 28-1, codified with ASC 805 (in thousands):
| Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
June 30, 2018 |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 84,880 |  |  | $ | 84,880 |  |  | $ | 84,880 |  |  | $ | — |  |  | $ | — |
Federal funds sold | 695 |  |  | 695 |  |  | 695 |  |  | — |  |  | — |
Certificates of deposit investments | 2,930 |  |  | 2,930 |  |  | — |  |  | 2,930 |  |  | — |
Available-for-sale securities | 616,303 |  |  | 616,303 |  |  | 341 |  |  | 615,962 |  |  | — |
Held-to-maturity securities | 69,383 |  |  | 67,525 |  |  | — |  |  | 67,525 |  |  | — |
Loans held for sale | 2,454 |  |  | 2,454 |  |  | — |  |  | 2,454 |  |  | — |
Loans net of allowance for loan losses | 2,352,184 |  |  | 2,301,723 |  |  | — |  |  | — |  |  | 2,301,723 |
Interest receivable | 12,612 |  |  | 12,612 |  |  | — |  |  | 12,612 |  |  | — |
Federal Reserve Bank stock | 5,160 |  |  | 5,160 |  |  | — |  |  | 5,160 |  |  | — |
Federal Home Loan Bank stock | 2,050 |  |  | 2,050 |  |  | — |  |  | 2,050 |  |  | — |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits | $ | 2,670,864 |  |  | $ | 2,668,442 |  |  | $ | — |  |  | $ | 2,147,323 |  |  | $ | 521,119 |
Securities sold under agreements to repurchase | 141,662 |  |  | 141,645 |  |  | — |  |  | 141,645 |  |  | — |
Interest payable | 1,145 |  |  | 1,145 |  |  | — |  |  | 1,145 |  |  | — |
Federal Home Loan Bank borrowings | 95,708 |  |  | 95,372 |  |  | — |  |  | 95,372 |  |  | — |
Other borrowings | 9,375 |  |  | 9,375 |  |  | — |  |  | 9,375 |  |  | — |
Junior subordinated debentures | 28,792 |  |  | 23,532 |  |  | — |  |  | 23,532 |  |  | — |
| Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
December 31, 2017 |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 88,388 |  |  | $ | 88,388 |  |  | $ | 88,388 |  |  | $ | — |  |  | $ | — |
Federal funds sold | 491 |  |  | 491 |  |  | 491 |  |  | — |  |  | — |
Certificates of deposit investments | 1,685 |  |  | 1,692 |  |  | — |  |  | 1,692 |  |  | — |
Available-for-sale securities | 578,579 |  |  | 578,579 |  |  | 172 |  |  | 575,859 |  |  | 2,548 |
Held-to-maturity securities | 69,332 |  |  | 68,457 |  |  | — |  |  | 68,457 |  |  | — |
Loans held for sale | 1,025 |  |  | 1,025 |  |  | — |  |  | 1,025 |  |  | — |
Loans net of allowance for loan losses | 1,918,499 |  |  | 1,899,678 |  |  | — |  |  | — |  |  | 1,899,678 |
Interest receivable | 10,832 |  |  | 10,832 |  |  | — |  |  | 10,832 |  |  | — |
Federal Reserve Bank stock | 5,160 |  |  | 5,160 |  |  | — |  |  | 5,160 |  |  | — |
Federal Home Loan Bank stock | 2,407 |  |  | 2,407 |  |  | — |  |  | 2,407 |  |  | — |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |
Deposits | $ | 2,274,639 |  |  | $ | 2,272,868 |  |  | $ | — |  |  | $ | 1,930,604 |  |  | $ | 342,264 |
Securities sold under agreements to repurchase | 155,388 |  |  | 155,394 |  |  | — |  |  | 155,394 |  |  | — |
Interest payable | 602 |  |  | 602 |  |  | — |  |  | 602 |  |  | — |
Federal Home Loan Bank borrowings | 60,038 |  |  | 59,968 |  |  | — |  |  | 59,968 |  |  | — |
Other borrowings | 10,313 |  |  | 10,313 |  |  | — |  |  | 10,313 |  |  | — |
Junior subordinated debentures | 24,000 |  |  | 18,050 |  |  | — |  |  | 18,050 |  |  | — |

X
- Definition Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=75026489&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration