Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents and interest bearing deposits with financial institutions	$	193,514	$	193,514	$	—	$	—	$	193,514
Investments held to maturity	9,590		—		9,590		—		9,590
Investment securities available for sale	269,711		—		269,711		—		269,711
FHLB, FRB, and other stock	25,853		—		25,853		—		25,853
Loans held for sale	7,281		—		8,082		—
Loans held for investment	2,832,977		—		—		2,849,797		2,849,797
Accrued interest receivable	11,862		11,862		—		—		11,862

Liabilities:
Deposit accounts	2,906,264		2,335,497		585,822		—		2,921,319
FHLB advances	80,000		—		80,033		—		80,033
Other borrowings	44,956		—		45,764		—		45,764
Subordinated debentures	70,310		—		68,093		—		68,093
Accrued interest payable	232		232		—		—		232



	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
Investment securities available for sale	280,273		—		280,273		—		280,273
FHLB, FRB, and other stock	22,292				22,292		—		22,292
Loans held for sale	8,565		—		9,507		—		9,507
Loans held for investment	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 March 31, 2015
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	178,371	$	178,371	$	—	$	—	$	178,371
Investment securities available for sale	280,461		—		280,461		—		280,461
FHLB, FRB, and other stock	30,586		30,586		—		—		30,586
Loans held for investment	2,117,741		—		—		2,205,161		2,205,161
Accrued interest receivable	8,769		8,769		—		—		8,769

Liabilities:
Deposit accounts	2,043,166		1,576,056		479,204		—		2,055,260
FHLB advances	300,000		300,031		—		—		300,031
Other borrowings	43,434		—		45,084		—		45,084
Subordinated debentures	70,310		—		69,501		—		69,501
Accrued interest payable	177		177		—		—		177

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:



	March 31, 2016
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Available for sale:
Municipal bonds	$	—	$	125,882	$	—	$	125,882
Collateralized mortgage obligation	$	—	$	23,866	$	—	$	23,866
Mortgage-backed securities	—		119,963		—		119,963
Total securities available for sale	$	—	$	269,711	$	—	$	269,711



	March 31, 2015
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Available for sale:
Municipal bonds	$	—	$	105,523	$	—	105,523
Collateralized mortgage obligation	$	—	$	11,288	$	—	11,288
Mortgage-backed securities	—		163,650		—		163,650
Total securities available for sale	$	—	$	280,461	$	—	$	280,461

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:



	March 31, 2016
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	1,593	$	1,593
Other real estate owned	—		—		1,161		1,161
Total assets	$	—	$	—	$	2,754	$	2,754



	March 31, 2015
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	2,742	$	2,742
Other real estate owned	—		—		997		997
Total assets	$	—	$	—	$	3,739	$	3,739

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:



	March 31, 2016
				Range
	Fair Value		Valuation Techniques	Rate	Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial and industrial	$	306	Collateral valuation	6.25 - 7.50%	2 - 6	0 - 10%
Franchise	169		Collateral valuation	5.70 - 6.70%	8	0 - 10%
Commercial owner occupied	507		Collateral valuation	6.75 - 7.75%	1 - 10	0 - 10%
SBA	69		Collateral valuation	0.06	15	0 - 10%
Real estate loans:
Commercial non-owner occupied	—		Collateral valuation	7.00%	11	0 - 15%
One-to-four family	523		Collateral valuation	7.00 - 15.00%	4 - 14	0 - 10%
Land	19		Collateral valuation	13.00%	15	0 - 10%
Total collateral dependent impaired loans	$	1,593

Other real estate owned
Land	$	1,161	Collateral valuation	—%	0	0 - 10%
Total other real estate owned	$	1,161



	March 31, 2015
				Range
	Fair Value		Valuation Techniques	Rate	Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Franchise	$	1,853	Collateral valuation	6.70%	8	0 - 10%
Commercial owner occupied	379		Collateral valuation	6.75%	7	0 - 10%
Real estate loans:
Commercial non-owner occupied	458		Collateral valuation	7.00%	12	0 - 15%
One-to-four family	52		Collateral valuation	8.00% - 15.00%	5 - 16	0 - 10%
Total collateral dependent impaired loans	$	2,742

Other real estate owned
Land	$	711	Collateral valuation	—%	0	0-10%
One-to-four family	$	286	Collateral valuation	—%	0	0-10%
Total other real estate owned	$	997