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Fair Values of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and liabilities carried at fair value on a recurring basis at June 30, 2015 are summarized in the following table:
(dollars in thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Available-for-sale debt securities:
 
 
 
 
 
 
 
 
U.S. government sponsored agencies
 
$
2,028

 
$
—

 
$
2,028

 
$
—

Residential mortgage-backed securities-GSE
 
291,495

 
—

 
291,495

 
—

Residential mortgage-backed securities-Private
 
15,908

 
—

 
15,908

 
—

Commercial mortgage-backed securities-GSE
 
21,872

 
—

 
21,872

 
—

Commercial mortgage-backed securities-Private
 
19,236

 
—

 
19,236

 
—

Corporate notes
 
30,828

 
—

 
30,828

 
—

Total available-for-sale debt securities
 
381,367

 
—

 
381,367

 
—

Mortgage servicing rights
 
2,012

 
—

 
—

 
2,012

Interest rate swaps
 
(620
)
 
—

 
(620
)
 
—

Total assets at fair value
 
$
382,759

 
$
—

 
$
380,747

 
$
2,012

Assets and liabilities carried at fair value on a recurring basis at December 31, 2014 are summarized in the following table:
(dollars in thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Available-for-sale debt securities:
 
 
 
 
 
 
 
 
U.S. government sponsored agencies
 
$
2,044

 
$
—

 
$
2,044

 
$
—

Residential mortgage-backed securities-GSE
 
290,145

 
—

 
290,145

 
—

Residential mortgage-backed securities-Private
 
17,271

 
—

 
17,271

 
—

Commercial mortgage-backed securities-GSE
 
21,958

 
—

 
21,958

 
—

Commercial mortgage-backed securities-Private
 
10,215

 
—

 
10,215

 
—

Corporate notes
 
8,407

 
—

 
8,407

 
—

Total available-for-sale debt securities
 
350,040

 
—

 
350,040

 
—

Mortgage servicing rights
 
1,726

 
—

 
—

 
1,726

Interest rate swaps
 
(525
)
 
—

 
(525
)
 
—

Total assets at fair value
 
$
351,241

 
$
—

 
$
349,515

 
$
1,726
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the periods indicated:
 
 
Fair Value Measurements Using Significant
 
 
Unobservable Inputs (Level 3)
 
 
Mortgage Servicing Rights
(dollars in thousands)
 
Three Months Ended June 30,
 
 
2015
 
2014
Balance, beginning of period
 
$
1,896

 
$
1,587

Total gains or losses (realized/unrealized):
 
 
 
 
Included in earnings, gross
 
256

 
166

      Less amortization
 
(140
)
 
(116
)
Balance, end of period
 
$
2,012

 
$
1,637

 
 
Fair Value Measurements Using Significant
 
 
Unobservable Inputs (Level 3)
 
 
Mortgage Servicing Rights
(dollars in thousands)
 
Six Months Ended June 30,
 
 
2015
 
2014
Beginning balance at January 1,
 
$
1,726

 
$
1,552

Total gains or losses (realized/unrealized):
 
 
 
 
Included in earnings, gross
 
556

 
310

      Less amortization
 
(270
)
 
(225
)
Balance, end of period
 
$
2,012

 
$
1,637
Fair Value Measurements, Nonrecurring
Assets measured at fair value on a nonrecurring basis are included in the following table at June 30, 2015:
(dollars in thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Impaired loans, net
 
$
4,164

 
$
—

 
$
—

 
$
4,164

Other real estate owned
 
14,011

 
—

 
—

 
14,011

Total assets at fair value from continuing operations
 
$
18,175

 
$
—

 
$
—

 
$
18,175

Assets measured at fair value on a nonrecurring basis are included in the following table at December 31, 2014:
(dollars in thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Impaired loans, net
 
$
7,433

 
$
—

 
$
—

 
$
7,433

Other real estate owned
 
15,579

 
—

 
—

 
15,579

Total assets at fair value from continuing operations
 
$
23,012

 
$
—

 
$
—

 
$
23,012
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques
(dollars in thousands)
 
Fair Value at June 30, 2015
 
Valuation Techniques
 
Unobservable
Input
 
Range

 
 
 
 
 
 
 
 
Impaired loans, net
 
$
4,164

 
Discounted appraisals
 
Collateral discounts
 
1.00% - 30.00%
Other real estate owned
 
14,011

 
Discounted appraisals
 
Collateral discounts
 
1.00% - 30.00%
Mortgage servicing rights
 
2,012

 
Discounted cash flows
 
Prepayment rate
 
10.00% - 25.00%
Mortgage servicing rights
 
 
 
 
 
Discount rate
 
6.00% - 10.00%

(dollars in thousands)
 
Fair Value at
December 31, 2014
 
Valuation Techniques
 
Unobservable
Input
 
Range
 
 
 
 
 
 
 
 
 
Impaired loans, net
 
$
7,433

 
Discounted appraisals
 
Collateral discounts
 
1.00%-30.00%
Other real estate owned
 
15,579

 
Discounted appraisals
 
Collateral discounts
 
1.00%-30.00%
Mortgage servicing rights
 
1,726

 
Discounted cash flows
 
Prepayment rate
 
10.00% - 25.00%
Mortgage servicing rights
 
 
 
 
 
Discount rate
 
6.00% - 10.00%
Fair Value, by Balance Sheet Grouping
The estimated fair values of financial instruments are as follows at the periods indicated:
 
 
At June 30, 2015
(dollars in thousands)
 
Carrying Value
 
Estimated Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial Assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
30,986

 
$
30,986

 
$
30,986

 
$
—

 
$
—

Investment securities: Available-for-sale
 
381,367

 
381,367

 
—

 
381,367

 
—

Investment securities: Held-to-maturity
 
156,648

 
153,589

 
—

 
153,589

 
—

Loans held for sale
 
2,767

 
2,767

 
—

 
2,767

 
—

Loans held for investment, net
 
1,427,864

 
1,403,733

 
—

 
—

 
1,403,733

Accrued interest receivable
 
5,569

 
5,569

 
1

 
1,586

 
3,982

Interest rate swaps
 
(620
)
 
(620
)
 
—

 
(620
)
 
—

Financial Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
1,855,638

 
1,854,419

 
—

 
1,854,419

 
—

Retail repurchase agreements
 
11,424

 
11,424

 
—

 
11,424

 
—

Federal Home Loan Bank advances
 
80,708

 
83,360

 
—

 
83,360

 
—

Long-term notes payable
 
5,377

 
5,377

 
—

 
—

 
5,377

Junior subordinated debentures
 
56,702

 
32,799

 
—

 
—

 
32,799

Accrued interest payable
 
337

 
337

 
—

 
320

 
17

 
 
At December 31, 2014
(dollars in thousands)
 
Carrying Value
 
Estimated Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial Assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
95,882

 
$
95,882

 
$
95,882

 
$
—

 
$
—

Investment securities: Available-for-sale
 
350,040

 
350,040

 
—

 
350,040

 
—

Investment securities: Held-to-maturity
 
142,461

 
140,875

 
 
 
140,875

 
—

Loans held for sale
 
2,796

 
2,796

 
—

 
2,796

 
—

Loans held for investment, net
 
1,337,443

 
1,328,895

 
—

 
—

 
1,328,895

Accrued interest receivable
 
4,885

 
4,885

 
—

 
1,262

 
3,623

Interest rate locks and forward loan sale commitments
 
(525
)
 
(525
)
 
—

 
(525
)
 
—

Financial Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
1,794,420

 
1,793,205

 
—

 
1,793,205

 
—

Retail repurchase agreements
 
9,076

 
9,076

 
—

 
9,076

 
—

Federal Home Loan Bank advances
 
68,234

 
71,462

 
—

 
71,462

 
—

Long-term notes payable
 
5,338

 
5,338

 
—

 
—

 
5,338

Junior subordinated debentures
 
56,702

 
32,341

 
—

 
—

 
32,341

Accrued interest payable
 
3,624

 
3,624

 
—

 
321

 
3,303