Fair Value (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value

Schedule of financial assets and liabilities measured on a recurring basis

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Balance		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets at September 30, 2017
Available-for-sale securities:
Agency mortgage-backed securities	$	373,167		—	$	373,167		—
Trust preferred securities		16,940		—		16,940		—
I/O strip receivables		989		—		989		—
Assets at December 31, 2016
Available-for-sale securities:
Agency mortgage-backed securities	$	290,989		—	$	290,989		—
Trust preferred securities		15,600		—		15,600		—
I/O strip receivables		1,067		—		1,067		—

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

			Fair Value Measurements Using
				Significant
			Quoted Prices in	Other	Significant
			Active Markets for	Observable	Unobservable
			Identical Assets	Inputs	Inputs
	Balance		(Level 1)	(Level 2)	(Level 3)
	(Dollars in thousands)
Assets at September 30, 2017
Impaired loans - held-for-investment:
Commercial	$	246	—	—	$	246
Real estate:
Land and construction		1,068	—	—		1,068
	$	1,314	—	—	$	1,314
Assets at December 31, 2016
Impaired loans - held-for-investment:
Commercial	$	165	—	—	$	165
Real estate:
CRE		419	—	—		419
Land and construction		199	—	—		199
	$	783	—	—	$	783
Foreclosed assets:
Land and construction	$	229	—	—	$	229
	$	229			$	229

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

	September 30, 2017		December 31, 2016
	(Dollars in thousands)
Impaired loans held-for-investment:
Book value of impaired loans held-for-investment carried at fair value	$	1,556	$	1,112
Book value of impaired loans held-for-investment carried at cost		2,260		2,078
Total impaired loans held-for-investment	$	3,816	$	3,190
Impaired loans held-for-investment carried at fair value:
Book value of impaired loans held-for-investment carried at fair value	$	1,556	$	1,112
Specific valuation allowance		(242)		(329)
Impaired loans held-for-investment carried at fair value, net	$	1,314	$	783

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

	September 30, 2017
			Valuation	Unobservable	Range
	Fair Value		Techniques	Inputs	(Weighted Average)
	(Dollars in thousands)
Impaired loans - held-for-investment:
Commercial	$	246	Market Approach	Discount adjustment for differences between comparable sales	Less than 1  %
Real estate:
Land and construction		1,068	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%

	December 31, 2016
			Valuation	Unobservable	Range
	Fair Value		Techniques	Inputs	(Weighted Average)
	(Dollars in thousands)
Impaired loans - held-for-investment:
Commercial	$	165	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%
Real estate:
CRE		419	Market Approach	Discount adjustment for differences between comparable sales	0% to 3% (3)%
Land and construction		199	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%
Foreclosed assets:
Land and construction		229	Market Approach	Discount adjustment for differences between comparable sales	0% to 2% (2)%

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2017 are as follows:

			Estimated Fair Value
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
	Amounts		(Level 1)		(Level 2)		(Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	346,120	$	346,120	$	—	$	—	$	346,120
Securities available-for-sale		390,107		—		390,107		—		390,107
Securities held-to-maturity		379,550		—		377,845		—		377,845
Loans (including loans held-for-sale), net		1,550,804		—		4,602		1,497,010		1,501,612
FHLB stock, FRB stock, and other investments		17,905		—		—		—		N/A
Accrued interest receivable		7,818		—		2,522		5,296		7,818
I/O strips receivables		989		—		989		—		989
Liabilities:
Time deposits	$	204,291	$	—	$	204,555	$	—	$	204,555
Other deposits		2,276,313		—		2,276,313		—		2,276,313
Subordinated debt		39,137		—		39,937				39,937
Accrued interest payable		934		—		934		—		934

The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2016:

			Estimated Fair Value
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
	Amounts		(Level 1)		(Level 2)		(Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	266,103	$	266,103	$	—	$	—	$	266,103
Securities available-for-sale		306,589		—		306,589		—		306,589
Securities held-to-maturity		324,010		—		318,748		—		318,748
Loans (including loans held-for-sale), net		1,489,223		—		5,705		1,444,076		1,449,781
FHLB stock, FRB stock, and other investments		15,196		—		—		—		N/A
Accrued interest receivable		6,859		—		1,961		4,898		6,859
I/O strips receivables		1,067		—		1,067		—		1,067
Liabilities:
Time deposits	$	224,717	$	—	$	225,047	$	—	$	225,047
Other deposits		2,037,423		—		2,037,423		—		2,037,423
Accrued interest payable		168		—		168		—		168