Fair Value (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value

Schedule of financial assets and liabilities measured on a recurring basis

			Fair Value Measurements Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets at December 31, 2014:
Available-for-sale securities:
Agency mortgage-backed securities	$	154,172		—	$	154,172		—
Corporate bonds	$	36,863		—	$	36,863		—
Trust preferred securities	$	15,300		—	$	15,300		—
I/O strip receivables	$	1,481		—	$	1,481		—
Assets at December 31, 2013:
Available-for-sale securities:
Agency mortgage-backed securities	$	207,644		—	$	207,644		—
Corporate bonds	$	52,046		—	$	52,046		—
Trust preferred securities	$	20,410		—	$	20,410		—
I/O strip receivables	$	1,647		—	$	1,647		—

Schedule of assets and liabilities measured on a non-recurring basis

			Fair Value Measurements Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets at December 31, 2014:
Impaired loans — held-for-investment:
Commercial	$	859		—		—	$	859
Real estate:
Commercial and residential		587		—		—		587
Land and construction		1,176		—		—		1,176
	$	2,622		—		—	$	2,622
Foreclosed assets:
Commercial	$	31		—		—	$	31
	$	31					$	31
Assets at December 31, 2013:
Impaired loans — held-for-investment:
Commercial	$	1,780		—		—	$	1,780
Real estate:
Commercial and residential		2,846		—		—		2,846
Land and construction		1,290		—		—		1,290
Consumer		100		—		—		100
	$	6,016		—		—	$	6,016
Foreclosed assets:
Land and construction	$	575		—		—	$	575
	$	575					$	575

Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value

	December 31, 2014			December 31, 2013
	(Dollars in thousands)
Impaired loans held-for-investment:
Book value of impaired loans held-for-investment carried at fair value	$	3,026		$	8,472
Book value of impaired loans held-for-investment carried at cost		2,996			3,346
Total impaired loans held-for-investment	$	6,022		$	11,818
Impaired loans held-for-investment carried at fair value:
Book value of impaired loans held-for-investment carried at fair value	$	3,026		$	8,472
Specific valuation allowance		(404	)		(2,456	)
Impaired loans held-for-investment carried at fair value, net	$	2,622		$	6,016

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

	December 31, 2014
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans — held-for-investment:
Commercial	$	859	Market Approach	Discount adjustment for differences between comparable sales	0% to 3% (3%)
Real estate:
Commercial and residential		587	Market Approach	Discount adjustment for differences between comparable sales	0% to 3% (3%)
Land and construction		1,176	Market Approach	Discount adjustment for differences between comparable sales	1% to 2% (2%)
Foreclosed assets:
Commercial		31	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%

	December 31, 2013
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans — held-for-investment:
Commercial	$	1,780	Market Approach	Discount adjustment for differences between comparable sales	2% to 3% (2%)
Real estate:
Commercial and residential		2,846	Market Approach	Discount adjustment for differences between comparable sales	1% to 15% (2%)
Land and construction		1,290	Market Approach	Discount adjustment for differences between comparable sales	1% to 2% (2%)
Foreclosed assets:
Land and construction		575	Market Approach	Discount adjustment for differences between comparable sales	1% to 16% (7%)

Schedule of carrying amounts and estimated fair values of financial instruments

			December 31, 2014 Estimated Fair Value
	Carrying Amounts		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	122,403	$	122,403	$	—	$	—	$	122,403
Securities available-for-sale		206,335		—		206,335		—		206,335
Securities held-to-maturity		95,362		—		94,953		—		94,953
Loans (including loans held-for-sale), net		1,071,436		—		1,172		1,071,854		1,073,026
FHLB and FRB stock		10,598		—		—		—		N/A
Accrued interest receivable		5,044		—		1,435		3,609		5,044
Loan servicing rights and I/O strips receivables		2,046		—		3,906		—		3,906
Liabilities:
Time deposits	$	256,223	$	—	$	256,589	$	—	$	256,589
Other deposits		1,132,163		—		1,132,163		—		1,132,163
Accrued interest payable		201		—		201		—		201

			December 31, 2013 Estimated Fair Value
	Carrying Amounts		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	112,605	$	112,605	$	—	$	—	$	112,605
Securities available-for-sale		280,100		—		280,100		—		280,100
Securities held-to-maturity		95,921		—		86,032		—		86,032
Loans (including loans held-for-sale), net		898,897		—		3,148		890,368		893,516
FHLB and FRB stock		10,435		—		—		—		N/A
Accrued interest receivable		4,085		—		1,729		2,356		4,085
Loan servicing rights and I/O strips receivables		2,172		—		4,203		—		4,203
Liabilities:
Time deposits	$	277,844	$	—	$	278,239	$	—	$	278,239
Other deposits		1,008,377		—		1,008,377		—		1,008,377
Accrued interest payable		192		—		192		—		192