Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2015 and 2014.



	At December 31, 2015
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	78,417	$	78,417	$	—	$	—	$	78,417
Securities available for sale	280,273		—		280,273		—		280,273
Federal Reserve Bank and FHLB stock, at cost	22,292		—		22,292		—		22,292
Loans held for sale, net	8,565		—		9,507		—		9,507
Loans held for investment, net	2,236,998		—		—		2,244,936		2,244,936
Accrued interest receivable	9,315		9,315		—		—		9,315
Liabilities:
Deposit accounts	2,195,123		1,674,148		521,291		—		2,195,439
FHLB advances	148,000		—		148,036		—		148,036
Other borrowings	48,125		—		49,156		—		49,156
Subordinated debentures	70,310		—		68,675		—		68,675
Accrued interest payable	206		206		—		—		206

	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
Federal Reserve Bank and FHLB stock, at cost	17,067		—		17,067		—		17,067
Loans held for investment, net	1,616,422		—		—		2,116,719		2,116,719
Accrued interest receivable	7,131		7,131		—		—		7,131
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

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

The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2015 and 2014.



	At December 31, 2015
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	78,417	$	78,417	$	—	$	—	$	78,417
Securities available for sale	280,273		—		280,273		—		280,273
Federal Reserve Bank and FHLB stock, at cost	22,292		—		22,292		—		22,292
Loans held for sale, net	8,565		—		9,507		—		9,507
Loans held for investment, net	2,236,998		—		—		2,244,936		2,244,936
Accrued interest receivable	9,315		9,315		—		—		9,315
Liabilities:
Deposit accounts	2,195,123		1,674,148		521,291		—		2,195,439
FHLB advances	148,000		—		148,036		—		148,036
Other borrowings	48,125		—		49,156		—		49,156
Subordinated debentures	70,310		—		68,675		—		68,675
Accrued interest payable	206		206		—		—		206

	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
Federal Reserve Bank and FHLB stock, at cost	17,067		—		17,067		—		17,067
Loans held for investment, net	1,616,422		—		—		2,116,719		2,116,719
Accrued interest receivable	7,131		7,131		—		—		7,131
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

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

The following fair value hierarchy tables present information about the Company’s assets measured at fair value on a recurring basis at the dates indicated:



	At December 31, 2015
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Investment securities available for sale:
Municipal bonds	$	—	$	130,245	$	—	$	130,245
Collateralized mortgage obligation	$	—	$	24,543	$	—	$	24,543
Mortgage-backed securities	$	—	$	125,485	$	—	$	125,485
Total securities available for sale:	$	—	$	280,273	$	—	$	280,273

	At December 31, 2014
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Investment securities available for sale:
Municipal bonds	$	—	$	89,661	$	—	$	89,661
Collateralized mortgage obligation	$	—	$	6,862	$	—	$	6,862
Mortgage-backed securities	$	—	$	105,115	$	—	$	105,115
Total securities available for sale:	$	—	$	201,638	$	—	$	201,638

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 at the dates indicated:



	At December 31, 2015
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	1,322	$	1,322
Other real estate owned	—		—		1,161		1,161
Total assets	$	—	$	—	$	2,483	$	2,483




	At December 31, 2014
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	921	$	921
Other real estate owned	—		—		1,037		1,037
Total assets	$	—	$	—	$	1,958	$	1,958

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 at the dates indicated:



	December 31, 2015
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	Rate		Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial and industrial	$	313	Collateral valuation	Management adjustment to reflect current conditions and selling costs	7.50	%	6	0-10
Franchise	168		Collateral valuation	Management adjustment to reflect current conditions and selling costs	5.70% - 6.70%		7 - 8	0-10
Commercial owner occupied	536		Collateral valuation	Management adjustment to reflect current conditions and selling costs	7.75	%	7	0-10
Real estate loans:
Commercial non-owner occupied	214		Collateral valuation	Management adjustment to reflect current conditions and selling costs	6.75	%	2 - 12	0-15
One-to-four family	70		Collateral valuation	Management adjustment to reflect current conditions and selling costs	9.00% - 15.00%		5 - 16	0-10
Land	21		Collateral valuation	Management adjustment to reflect current conditions and selling costs	13.00	%	15	0-10
Total collateral dependent impaired loans	$	1,322
Other real estate owned
One-to-four family	$	—	Collateral valuation	Management adjustment to reflect current conditions and selling costs	—		—	0-10
Land	1,161		Collateral valuation	Management adjustment to reflect current conditions and selling costs	—		—	0-10
Total other real estate owned	$	1,161



	At December 31, 2014
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	Rate		Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial owner occupied	$	388	Collateral valuation	Management adjustment to reflect current conditions and selling costs	6.75	%	7	0-10
Real estate loans:
Commercial non-owner occupied	479		Collateral valuation	Management adjustment to reflect current conditions and selling costs	7.00% - 7.50%		2 - 12	0-15
One-to-four family	54		Collateral valuation	Management adjustment to reflect current conditions and selling costs	8.00% - 15.00%		5 - 16	0-10
Total collateral dependent impaired loans	$	921
Other real estate owned
One-to-four family	$	285	Collateral valuation	Management adjustment to reflect current conditions and selling costs	—		—	0-10
Land	752		Collateral valuation	Management adjustment to reflect current conditions and selling costs	—		—	0-10
Total other real estate owned	$	1,037