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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value
The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).
 
 
September 30, 2019
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
107,276

 
$
—

 
$
107,276

Mortgage Backed Securities-residential
 
—

 
216,736

 
—

 
216,736

Mortgage Backed Securities-commercial
 
—

 
24,424

 
—

 
24,424

Collateralized mortgage obligations
 
—

 
308,038

 
—

 
308,038

State and municipal
 
—

 
267,091

 
2,565

 
269,656

Municipal taxable
 
—

 
732

 
—

 
732

U.S. Treasury
 
—

 
9,478

 
—

 
9,478

Collateralized debt obligations
 
—

 
—

 
3,604

 
3,604

TOTAL
 
$
—

 
$
933,775

 
$
6,169

 
$
939,944

Derivative Assets
 
 

 
1,099

 
 

 
 

Derivative Liabilities
 
 

 
(1,099
)
 
 

 
 

 
 
December 31, 2018
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
25,364

 
$
—

 
$
25,364

Mortgage Backed Securities-residential
 
—

 
178,743

 
—

 
178,743

Mortgage Backed Securities-commercial
 
—

 
—

 
—

 
—

Collateralized mortgage obligations
 
—

 
343,616

 
—

 
343,616

State and municipal
 
—

 
230,800

 
3,135

 
233,935

Collateralized debt obligations
 
—

 
—

 
3,258

 
3,258

TOTAL
 
$
—

 
$
778,523

 
$
6,393

 
$
784,916

Derivative Assets
 
 

 
218

 
 

 
 

Derivative Liabilities
 
 

 
(218
)
 
 

 
 
Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)
The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2019 and the year ended December 31, 2018. 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Three Months Ended September 30, 2019
(Dollar amounts in thousands)
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, July 1
$
2,890

 
$
3,333

 
$
6,223

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
315

 
315

Transfers
—

 
—

 
—

Settlements
(325
)
 
(44
)
 
(369
)
Ending balance, September 30
$
2,565

 
$
3,604

 
$
6,169

 
 
 
Nine Months Ended September 30, 2019
(Dollar amounts in thousands)
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
$
3,135

 
$
3,258

 
$
6,393

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
476

 
476

Transfers
—

 
—

 
—

Settlements
(570
)
 
(130
)
 
(700
)
Ending balance, September 30
$
2,565

 
$
3,604

 
$
6,169

 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Year Ended December 31, 2018
(Dollar amounts in thousands)
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
 
$
3,680

 
$
14,605

 
$
18,285

Total realized/unrealized gains or losses
 
 

 
 

 
 

Included in earnings
 
—

 
—

 
—

Included in other comprehensive income
 
—

 
(2,840
)
 
(2,840
)
Purchases
 
—

 
—

 
—

Settlements
 
(545
)
 
(8,507
)
 
(9,052
)
Ending balance, December 31
 
$
3,135

 
$
3,258

 
$
6,393
Quantitative information about recurring and non-recurring Level 3
The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2019.
(Dollar amounts in thousands)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
2,565

 
Discounted cash flow
 
Discount rate
Probability of default
 
2.87%-4.44% 0%
Other real estate  
 
$
3,717

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
$
120

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2018.
(Dollar amounts in thousands)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
3,135

 
Discounted cash flow
 
Discount rate
Probability of default
 
2.64%-4.80% 0%
Other real estate  
 
$
603

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
1,639

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
0.00%-50.00%
Schedule of loans identified as impaired by class of loans
The following tables presents loans identified as impaired by class of loans, and carried at fair value on a non-recurring basis, as of September 30, 2019 and December 31, 2018, which are all considered Level 3.
 
 
September 30, 2019
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
153

 
$
33

 
$
120

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
—

 
—

 
—

Agriculture
 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
—

 
—

 
—

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
153

 
$
33

 
$
120

 
 
December 31, 2018
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
1,819

 
$
593

 
$
1,226

Farmland
 
211

 
44

 
167

Non Farm, Non Residential
 
—

 
—

 
—

Agriculture
 
346

 
100

 
246

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
—

 
—

 
—

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
2,376

 
$
737

 
$
1,639
Schedule of carrying amount and estimated fair value of financial instruments
The fair value of off-balance sheet items is not considered material.
 
 
September 30, 2019
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
80,193

 
$
22,625

 
$
57,568

 
$
—

 
$
80,193

Federal funds sold
 
—

 
—

 
—

 
—

 
—

Securities available-for-sale
 
939,944

 
—

 
933,775

 
6,169

 
939,944

Restricted stock
 
13,624

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
2,648,677

 
—

 
—

 
2,674,336

 
2,674,336

Accrued interest receivable
 
18,735

 
—

 
5,180

 
13,555

 
18,735

Deposits
 
(3,220,122
)
 
—

 
(3,210,216
)
 
—

 
(3,210,216
)
Short-term borrowings
 
(90,852
)
 
—

 
(90,852
)
 
—

 
(90,852
)
Accrued interest payable
 
(1,790
)
 
—

 
(1,790
)
 
—

 
(1,790
)
 
 
December 31, 2018
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
74,388

 
$
23,418

 
$
50,970

 
$
—

 
$
74,388

Securities available-for-sale
 
784,916

 
—

 
778,523

 
6,393

 
784,916

Restricted stock
 
10,390

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,933,552

 
—

 
—

 
1,889,795

 
1,889,795

Accrued interest receivable
 
13,970

 
—

 
3,005

 
10,965

 
13,970

Deposits
 
(2,436,727
)
 
—

 
(2,426,128
)
 
—

 
(2,426,128
)
Short-term borrowings
 
(69,656
)
 
—

 
(69,656
)
 
—

 
(69,656
)
Accrued interest payable
 
(609
)
 
—

 
(609
)
 
—

 
(609
)