Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of carrying amount and estimated fair value of financial instruments

The fair value estimates presented herein are based on pertinent information available to management as of the periods indicated.



	At June 30, 2015
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	83,077	$	83,077	$	—	$	—	$	83,077
Securities available for sale	280,434		—		280,434		—		280,434
FHLB, Federal Reserve Bank, and other stock, at cost	22,843		22,843		—		—		22,843
Loans held for investment, net	2,103,460		—		—		2,150,673		2,150,673
Accrued interest receivable	9,072		9,072		—		—		9,072
Other real estate owned	711		—		—		711		711

Liabilities:
Deposit accounts	2,095,983		1,575,404		522,157		—		2,097,561
FHLB advances	118,000		118,208		—		—		118,208
Other borrowings	49,389		—		48,936		—		48,936
Subordinated debentures	70,310		—		68,675		—		68,675
Accrued interest payable	212		212		—		—		212



	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	380,783	$	—	$	38,078	$	—	$	38,078



	At December 31, 2014
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	110,925	$	110,925	$	—	$	—	$	110,925
Securities available for sale	201,638		—		201,638		—		201,638
FHLB, Federal Reserve Bank, and other stock, at cost	17,067		17,067		—		—		17,067
Loans held for investment, net	1,616,422		—		—		1,686,046		1,686,046
Accrued interest receivable	7,131		7,131		—		—		7,131
Other real estate owned	1,037		—		—		1,037		1,037

Liabilities:
Deposit accounts	1,630,826		1,216,847		519,898		—		1,736,745
FHLB advances	70,000		70,025		—		—		70,025
Other borrowings	46,643		—		48,312		—		48,312
Subordinated debentures	70,310		—		33,456		—		33,456
Accrued interest payable	209		209		—		—		209



	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	355,024	$	—	$	35,502	$	—	$	35,502



	At June 30, 2014
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	120,292	$	120,292	$	—	$	—	$	120,292
Securities available for sale	235,116		—		235,116		—		235,116
FHLB, Federal Reserve Bank, and other stock, at cost	18,494		18,494		—		—		18,494
Loans held for investment, net	1,457,035		—		—		1,461,796		1,461,796
Accrued interest receivable	6,645		6,645		—		—		6,645
Other real estate owned	752		—		—		752		752

Liabilities:
Deposit accounts	1,445,581		1,102,419		371,132		—		1,473,551
FHLB advances	210,000		210,000		—		—		210,000
Other borrowings	45,287		—		47,538		—		47,538
Subordinated debentures	10,310		—		4,592		—		4,592
Accrued interest payable	177		177		—		—		177

Schedule of Off-balance sheet commitments and standby letters of credit



	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	293,228	$	—	$	29,323	$	—	$	29,323

Schedule of Company's financial instruments measured at fair value on a recurring basis

The following fair value hierarchy table presents information about the Company’s financial instruments measured at fair value on a recurring basis at the dates indicated:



	June 30, 2015
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Investment securities available for sale:
Municipal bonds	$	—	$	120,431	$	—	$	120,431
Mortgage-backed securities	—		160,003		—		160,003
Total securities available for sale	$	—	$	280,434	$	—	$	280,434



	June 30, 2014
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Investment securities available for sale:
Municipal bonds	$	—	$	85,433	$	—	85,433
Mortgage-backed securities	—		149,683		—		149,683
Total securities available for sale	$	—	$	235,116	$	—	$	235,116

Schedule of Company's assets measured at fair value on a non-recurring basis

The following table provides a summary of the financial instruments the Company measures at fair value on a non-recurring basis as of the periods indicated:



	June 30, 2015
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	2,548	$	2,548
Other real estate owned	—		—		711		711
Total assets	$	—	$	—	$	3,259	$	3,259



	June 30, 2014
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	1,003	$	1,003
Other real estate owned	—		—		752		752
Total assets	$	—	$	—	$	1,755	$	1,755

Schedule of quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis

The following table presents quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis for the periods indicated:



	June 30, 2015
				Range
	Fair Value		Valuation Techniques	Rate	Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial and industrial	$	1,684	Collateral valuation	6.70%	8	0 - 10%
Commercial owner occupied	370		Collateral valuation	6.75%	7	0 - 10%
Real estate loans:
Commercial non-owner occupied	443		Collateral valuation	7.00%	12	0 - 15%
One-to-four family	28		Collateral valuation	8.00 - 15.00%	5 - 16	0 - 10%
Land	23		Collateral valuation	13.00%	15	0 - 10%
Total collateral dependent impaired loans	$	2,548

Other real estate owned
Land	$	711	Collateral valuation	—	—	0 - 10%
One-to-four family	—		Collateral valuation	—	—	0 - 10%
Total other real estate owned	$	711



	June 30, 2014
				Range
	Fair Value		Valuation Techniques	Rate	Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial and industrial	$	24	Collateral valuation	6.00%	3	0 - 10%
Commercial owner occupied	417		Collateral valuation	11.75%	8	0 - 10%
Real estate loans:
Commercial non-owner occupied	514		Collateral valuation	7.00%	13	0 - 15%
One-to-four family	48		Collateral valuation	2.26% - 15.00%	2-22	0 - 10%
Total collateral dependent impaired loans	$	1,003

Other real estate owned
Land	$	752	Collateral valuation	—	—	0-10%
Total other real estate owned	$	752