Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis

The results of the fair value hierarchy as of December 31, 2014, are as follows:

Fair Value Measurements Using

Carrying
Value

Quoted Prices
in Active Markets
for Identical Assets
(Level 1)

Significant
Observable
Inputs
(Level 2)

Significant
Other
Unobservable
Inputs (Level 3)

(dollars in thousands)

Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS

U.S. Treasury

2,000

—

2,000

—

U.S. Government Sponsored Enterprises

—

SBA Backed Securities

6,717

—

6,717

—

U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities

337,093

—

337,093

—

Privately Issued Residential Mortgage-Backed Securities

1,874

—

1,874

—

Obligations Issued by States and Political Subdivisions

96,784

—

96,784

Other Debt Securities

3,524

—

3,524

—

Equity Securities

398

296

—

102

Total

448,390

296

351,208

96,886

Financial Instruments Measured at Fair Value on a Non-recurring Basis

Impaired Loans

3,410

—

3,410

The results of the fair value hierarchy as of December 31, 2013, are as follows:


	Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
(dollars in thousands)
Financial Instruments Measured at Fair Value on a Recurring Basis — Securities AFS
U.S. Treasury	$	1,998	$	—	$	1,998	$	—
U.S. Government Sponsored Enterprises		10,004		—		10,004		—
SBA Backed Securities		7,302		—		7,302		—
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		403,189		—		403,189		—
Privately Issued Residential Mortgage-Backed Securities		2,277		—		2,277		—
Obligations Issued by States and Political Subdivisions		36,723		—		416		36,307
Other Debt Securities		2,176		—		2,176		—
Equity Securities		576		286		—		290

Total	$	464,245	$	286	$	427,362	$	36,597

Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	$	1,747	$	—	$	—	$	1,747

Assets Measured at Fair Value

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2014. Management continues to monitor the assumptions used to value the assets listed below.


Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS⁽¹⁾	$	96,886	Discounted cash flow	Discount rate	0%-1%⁽²⁾
Impaired Loans		3,410	Appraisal of collateral⁽³⁾	Appraisal adjustments⁽⁴⁾	0%-30% discount

(1)	Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

(2)	Weighted averages.

(3)	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(4)	Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2013. Management continues to monitor the assumptions used to value the assets listed below.


Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS⁽¹⁾	$	36,597	Discounted cash flow	Discount rate	0%-1%⁽²⁾
Impaired Loans		1,747	Appraisal of collateral⁽³⁾	Appraisal adjustments⁽⁴⁾	0%-30% discount

(1)	Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.

(2)	Weighted averages.

(3)	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(4)	Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

Changes in Level 3 Securities

The changes in Level 3 securities for the year ended December 31, 2014 are as shown in the table below:


	Auction Rate Securities		Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2013	$	3,820	$	32,487		$	290		$	36,597
Purchases		—		126,571			—			126,571
Maturities		—		(66,088	)		(188	)		(66,276	)
Amortization		—		(6	)		—			(6	)
Change in fair value		—		—			—			—

Balance at December 31, 2014	$	3,820	$	92,964		$	102		$	96,886

The changes in Level 3 securities for the year ended December 31, 2013 are as shown in the table below:


	Auction Rate Securities			Obligations Issued by States and Political Subdivisions			Equity Securities			Total
(dollars in thousands)
Balance at December 31, 2012	$	3,963		$	49,477		$	342		$	53,782
Purchases		—			50,012			—			50,012
Maturities		—			(66,976	)		(52	)		(67,028	)
Amortization		—			(26	)		—			(26	)
Change in fair value		(143	)		—			—			(143	)

Balance at December 31, 2013	$	3,820		$	32,487		$	290		$	36,597