Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize financial assets and liabilities recorded at fair value on a recurring basis, segregated by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	March 31, 2016
	Total Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Agency securities	$	30,569	$	—	$	30,569	$	—
Municipal securities		127,845		—		127,845		—
Single issue trust preferred securities		44,088		—		44,088		—
Corporate securities		70,251		—		70,251		—
Agency MBS		65,644		—		65,644		—
Equity securities		72		54		18		—

Total available-for-sale securities		338,469		54		338,415		—
Fair value loans		4,643		—		4,643		—
Deferred compensation assets		3,676		3,676		—		—
Deferred compensation liabilities		3,676		3,676		—		—
Derivative liabilities
Interest rate swaps		416		—		416		—

Total derivative liabilities		416		—		416		—


	December 31, 2015
	Total Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Agency securities	$	30,702	$	—	$	30,702	$	—
Municipal securities		128,678		—		128,678		—
Single issue trust preferred securities		47,832		—		47,832		—
Corporate securities		70,333		—		70,333		—
Certificates of deposit		5,000		—		5,000		—
Agency MBS		83,556		—		83,556		—
Equity securities		72		54		18		—

Total available-for-sale securities		366,173		54		366,119		—
Fair value loans		4,886		—		4,886		—
Deferred compensation assets		3,464		3,464		—		—
Deferred compensation liabilities		3,464		3,464		—		—
Derivative liabilities
Interest rate swaps		251		—		251		—

Total derivative liabilities		251		—		251		—

Assets Measured at Fair Value on Nonrecurring Basis

The following tables summarize assets measured at fair value on a nonrecurring basis, segregated by the level of valuation inputs in the fair value hierarchy, in the periods indicated:


	March 31, 2016
	Total Fair Value		Fair Value Measurements Using
	Total Fair Value		Level 1		Level 2		Level 3
(Amounts in thousands)
Impaired loans, non-covered	$	8,239	$	—	$	—	$	8,239
OREO, non-covered		3,484		—		—		3,484
OREO, covered		616		—		—		616

	December 31, 2015
	Total Fair Value		Fair Value Measurements Using
	Total Fair Value		Level 1		Level 2		Level 3
(Amounts in thousands)
Impaired loans, non-covered	$	9,164	$	—	$	—	$	9,164
OREO, non-covered		4,819		—		—		4,819
OREO, covered		4,034		—		—		4,034

Quantitative Information for Assets Measured at Fair Value on Nonrecurring Basis

The following table presents quantitative information for assets measured at fair value on a nonrecurring basis using Level 3 valuation inputs in the periods indicated:


	Valuation	Unobservable	Discount Range (Weighted Average)
	Technique	Input	March 31, 2016	December 31, 2015

Impaired loans, non-covered	Discounted appraisals⁽¹⁾	Appraisal adjustments⁽²⁾	1% to 35% (21%)	1% to 39% (21%)
OREO, non-covered	Discounted appraisals⁽¹⁾	Appraisal adjustments⁽²⁾	3% to 86% (28%)	1% to 100% (33%)
OREO, covered	Discounted appraisals⁽¹⁾	Appraisal adjustments⁽²⁾	0% to 55% (55%)	21% to 65% (46%)

(1)	Fair value is generally based on appraisals of the underlying collateral.

(2)	Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.

Carrying Amounts and Fair Values of Company's Financial Instruments

The following tables present the carrying amounts and fair values of the Company’s financial instruments, segregated by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	March 31, 2016
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	39,587	$	39,587	$	39,587	$	—	$	—
Securities available for sale		338,469		338,469		54		338,415		—
Securities held to maturity		72,485		72,943		—		72,943		—
Loans held for investment, net of allowance		1,741,962		1,762,447		—		4,643		1,757,804
FDIC indemnification asset		18,787		10,276		—		—		10,276
Interest receivable		5,968		5,968		—		5,968		—
Deferred compensation assets		3,676		3,676		3,676		—		—

Liabilities
Demand deposits		453,336		453,336		—		453,336		—
Interest-bearing demand deposits		344,153		344,153		—		344,153		—
Savings deposits		554,083		554,083		—		554,083		—
Time deposits		523,093		523,600		—		523,600		—
Federal funds purchased		18,000		18,000		18,000		—		—
Securities sold under agreements to repurchase		134,661		136,985		—		136,985		—
Interest payable		1,236		1,236		—		1,236		—
FHLB and other borrowings		80,756		86,908		—		86,908		—
Derivative financial liabilities		416		416		—		416		—
Deferred compensation liabilities		3,676		3,676		3,676		—		—
Assets
Cash and cash equivalents	$	51,787	$	51,787	$	51,787	$	—	$	—
Securities available for sale		366,173		366,173		54		366,119		—
Securities held to maturity		72,541		72,490		—		72,490		—
Loans held for investment, net of allowance		1,686,308		1,685,061		—		4,886		1,680,175
FDIC indemnification asset		20,844		10,753		—		—		10,753
Interest receivable		6,007		6,007		—		6,007		—
Deferred compensation assets		3,464		3,464		3,464		—		—

Liabilities
Demand deposits		451,511		451,511		—		451,511		—
Interest-bearing demand deposits		347,705		347,705		—		347,705		—
Savings deposits		530,585		530,585		—		530,585		—
Time deposits		543,458		541,059		—		541,059		—
Securities sold under agreements to repurchase		138,614		140,880		—		140,880		—
Interest payable		1,260		1,260		—		1,260		—
FHLB and other borrowings		80,756		85,774		—		85,774		—
Derivative financial liabilities		251		251		—		251		—
Deferred compensation liabilities		3,464		3,464		3,464		—		—