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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Measurements

Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018:


					Significant			Significant
					Other			Other
					Observable			Unobservable
		Quoted Prices			Inputs			Inputs			Total
(dollars in thousands)		(Level 1)			(Level 2)			(Level 3)			(Fair Value)
December 31, 2019
Assets:
Investment securities available-for-sale:
U. S. agency securities		$	—		$	179,794		$	—		$	179,794
Residential mortgage backed securities			—			543,852			—			543,852
Municipal bonds			—			73,931			—			73,931
Corporate bonds			—			—			10,733			10,733
U.S. Treasury			—			34,855			—			34,855
Other equity investments			—			—			198			198
Loans held for sale			—			56,707			—			56,707
Interest Rate Caps			—			317			—			317
Mortgage banking derivatives			—			—			280			280
Total assets measured at fair value on a recurring basis as of December 31, 2019		$	—		$	889,456		$	11,211		$	900,667
Liabilities:
Interest rate swap derivatives		$	—		$	203		$	—		$	203
Derivative liability			—			86			—			86
Interest Rate Caps			—			312			—			312
Mortgage banking derivatives			—			—			66			66
Total liabilities measured at fair value on a recurring basis as of December 31, 2019		$	—		$	601		$	66		$	667
December 31, 2018
Assets:
Investment securities available-for-sale:
U. S. agency securities		$	—		$	256,345		$	—		$	256,345
Residential mortgage backed securities			—			472,231			—			472,231
Municipal bonds			—			45,769			—			45,769
Corporate bonds			—			—			9,576			9,576
Other equity investments			—			—			218			218
Loans held for sale			—			19,254			—			19,254
Mortgage banking derivatives			—			—			229			229
Interest rate swap derivatives			—			3,727			—			3,727
Total assets measured at fair value on a recurring basis as of December 31, 2018		$	—		$	797,326		$	10,023		$	807,349
Liabilities:
Mortgage banking derivatives		$	—		$	—		$	269		$	269
Total liabilities measured at fair value on a recurring basis as of December 31, 2018		$	—		$	—		$	269		$	269

Schedule of aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value as of December 31, 2019 and 2018.


		December 31, 2019
					Aggregate
					Unpaid
					Principal
(dollars in thousands)		Fair Value			Balance			Difference
Residential mortgage loans held for sale		$	52,927		$	52,054		$	873
FHA mortgage loans held for sale		$	3,780		$	3,780		$	—


		December 31, 2018
					Aggregate
					Unpaid
					Principal
(dollars in thousands)		Fair Value			Balance			Difference
Residential mortgage loans held for sale		$	19,254		$	18,797		$	457
FHA mortgage loans held for sale		$	—		$	—		$	—

Schedule of the reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3)

The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3):


		Investment			Mortgage Banking
(dollars in thousands)		Securities			Derivatives			Total
Assets:
Beginning balance at January 1, 2019		$	9,794		$	229		$	10,023
Realized (loss) gain included in earnings			(20)			51			31
Unrealized gain included in other comprehensive income			131			—			131
Purchases of available -for-sale securities			4,030			—			4,030
Principal redemption			(3,004)			—			(3,004)
Ending balance at December 31, 2019		$	10,931		$	280		$	11,211

Liabilities:
Beginning balance at January 1, 2019		$	—		$	269		$	269
Realized gain included in earnings			—			(203)			(203)
Principal redemption			—			—			—
Ending balance at December 31, 2019		$	—		$	66		$	66


		Investment			Mortgage Banking
(dollars in thousands)		Securities			Derivatives			Total
Assets:
Beginning balance at January 1, 2018		$	1,718		$	43		$	1,761
Realized gain included in earnings			—			186			186
Purchases of available-for-sale securities			8,076			—			8,076
Principal redemption			—			—			—
Ending balance at December 31, 2018		$	9,794		$	229		$	10,023

Liabilities:
Beginning balance at January 1, 2018		$	—		$	10		$	10
Realized loss included in earnings			—			259			259
Principal redemption			—			—			—
Ending balance at December 31, 2018		$	—		$	269		$	269

Schedule of assets measured at fair value on nonrecurring basis


					Significant			Significant
					Other			Other
					Observable			Unobservable
		Quoted Prices			Inputs			Inputs			Total
(dollars in thousands)		(Level 1)			(Level 2)			(Level 3)			(Fair Value)
December 31, 2019
Impaired loans:
Commercial		$	—		$	—		$	10,100		$	10,100
Income producing - commercial real estate			—			—			11,948			11,948
Owner occupied - commercial real estate			—			—			6,934			6,934
Real estate mortgage - residential			—			—			4,981			4,981
Construction - commercial and residential			—			—			11,409			11,409
Home equity			—			—			387			387
Other real estate owned			—			—			1,487			1,487
Total assets measured at fair value on a nonrecurring basis as of December 31, 2019		$	—		$	—		$	47,246		$	47,246


					Significant			Significant
					Other			Other
					Observable			Unobservable
		Quoted Prices			Inputs			Inputs			Total
(dollars in thousands)		(Level 1)			(Level 2)			(Level 3)			(Fair Value)
December 31, 2018
Impaired loans:
Commercial		$	—		$	—		$	3,338		$	3,338
Income producing - commercial real estate			—			—			18,937			18,937
Owner occupied - commercial real estate			—			—			5,131			5,131
Real estate mortgage - residential			—			—			1,510			1,510
Construction - commercial and residential			—			—			1,981			1,981
Home equity			—			—			487			487
Other real estate owned			—			—			1,394			1,394
Total assets measured at fair value on a nonrecurring basis as of December 31, 2018		$	—		$	—		$	32,778		$	32,778

Schedule of estimated fair values of financial instruments

The estimated fair values of the Company’s financial instruments at December 31, 2019 and 2018 are as follows:


								Fair Value Measurements
											Significant
											Other			Significant
											Observable			Unobservable
		Carrying						Quoted Prices			Inputs			Inputs
(dollars in thousands)		Value			Fair Value			(Level 1)			(Level 2)			(Level 3)
December 31, 2019
Assets
Cash and due from banks		$	7,539		$	7,539		$	—		$	7,539		$	—
Federal funds sold			38,987			38,987			—			38,987			—
Interest bearing deposits with other banks			195,447			195,447			—			195,447			—
Investment securities			843,363			843,363			—			832,432			10,931
Federal Reserve and Federal Home Loan Bank stock			35,194			35,194			—			35,194			—
Loans held for sale			56,707			56,707			—			56,707			—
Loans			7,472,090			7,550,249			—			—			7,550,249
Bank owned life insurance			75,724			75,724			—			75,724			—
Annuity investment			14,697			14,697			—			14,697			—
Interest Rate Caps			280			280			—			280			—

Liabilities
Noninterest bearing deposits			2,064,367			2,064,367			—			2,064,367			—
Interest bearing deposits			3,876,985			3,876,985			—			3,876,985			—
Certificates of deposit			1,283,039			1,291,688			—			1,291,688			—
Customer repurchase agreements			30,980			30,980			—			30,980			—
Borrowings			467,687			328,330			—			328,330			—
Interest rate swap derivatives			203			203			—			203			—
Derivative liability			86			86			—			86			—
Interest Rate Caps			312			312			—			312			—
Mortgage banking derivatives			66			66			—			—			66

December 31, 2018
Assets
Cash and due from banks		$	6,773		$	6,773		$	—		$	6,773		$	—
Federal funds sold			11,934			11,934			—			11,934			—
Interest bearing deposits with other banks			303,157			303,157			—			303,157			—
Investment securities			784,139			784,139			—			774,345			9,794
Federal Reserve and Federal Home Loan Bank stock			23,506			23,506			—			23,506			—
Loans held for sale			19,254			19,254			—			19,254			—
Loans			6,921,503			6,921,048			—			—			6,921,048
Bank owned life insurance			73,441			73,441			—			73,441			—
Annuity investment			12,417			12,417			—			12,417			—
Mortgage banking derivatives			229			229			—			—			229
Interest rate swap derivatives			3,727			3,727			—			3,727			—

Liabilities
Noninterest bearing deposits			2,104,220			2,104,220			—			2,104,220			—
Interest bearing deposits			3,542,666			3,542,666			—			3,542,666			—
Certificates of deposit			1,327,400			1,325,209			—			1,325,209			—
Customer repurchase agreements			30,413			30,413			—			30,413			—
Borrowings			217,196			218,006			—			218,006			—
Mortgage banking derivatives			269			269			—			—			269