Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the financial instruments carried at fair value as of June 30, 2015 and December 31, 2014, by caption on the consolidated balance sheet and by FASB ASC 820 valuation hierarchy (as described above) (in thousands):


	Assets and Liabilities Measured at Fair Value on a Recurring Basis
					Models with		Models with
	Total Carrying				Significant		Significant
	Value in the		Quoted Market		Observable		Unobservable
	Consolidated		Prices in an		Market		Market
	Balance		Active Market		Parameters		Parameters
	Sheet		(Level 1)		(Level 2)		(Level 3)
June 30, 2015
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	113,145		—		113,145		—
Mortgage-backed securities		163,158		—		163,158		—
Asset-backed securities		29,117		—		29,117		—
State and municipal securities		23,064		—		23,064		—

Total investment securities available-for-sale		328,484		—		328,484		—
Loans held for sale		10,076		—		10,076		—
Other assets		25,543		—		—		25,543

Total assets at fair value	$	364,103		—		338,560		25,543

December 31, 2014
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	130,567		—		130,567		—
Mortgage-backed securities		171,069		—		171,069		—
Asset-backed securities		30,520		—		30,520		—
State and municipal securities		14,264		—		14,264		—

Total investment securities available-for-sale		346,420		—		346,420		—
Loans held for sale		9,466		—		9,466		—
Other assets		17,331		—		—		17,331

Total assets at fair value	$	373,217		—		355,886		17,331

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

	Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
						Models with		Models with
		Total Carrying				Significant		Significant
		Value in the		Quoted Market		Observable		Unobservable
		Consolidated		Prices in an		Market		Market
		Balance		Active Market		Parameters		Parameters
		Sheet		(Level 1)		(Level 2)		(Level 3)
June 30, 2015
Other real estate owned		$	6,477		—		—		6,477
Impaired loans, net (¹)			11,601		—		—		11,601

Total		$	18,078		—		—		18,078

December 31, 2014
Other real estate owned		$	7,298		—		—		7,298
Impaired loans, net (¹)			8,866		—		—		8,866

Total		$	16,164		—		—		16,164

Changes in Fair Value Due to Observable Factors

The table below includes a rollforward of the balance sheet amounts for the six months ended June 30, 2015 and 2014 (including the change in fair value) for financial instruments classified by the Company within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands):


	For the Six Months Ended June 30,
	2015				2014
	Other		Other		Other		Other
	Assets		Liabilities		Assets		Liabilities
Fair value, January 1	$	17,331		—	$	11,390		—
Total realized gains included in income		558		—		186		—
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at June 30		—		—		—		—
Purchases, issuances and settlements, net		7,654		—		5,000		—
Transfers out of Level 3		—		—		—		—

Fair value, June 30	$	25,543		—	$	16,576		—

Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at June 30	$	558		—		186		—

Carrying Value and Estimated Fair Value of Financial Instruments

The following table presents the carrying amounts, estimated fair value and placement in the fair valuation hierarchy of the Company’s financial instruments at June 30, 2015 and December 31, 2014. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization.


							Models with		Models with
					Quoted Market		Significant		Significant
					Prices in		Observable		Unobservable
	Carrying/				an Active		Market		Market
	Notional		Estimated		Market		Parameters		Parameters
(in Thousands)	Amount		Fair Value (¹)		(Level 1)		(Level 2)		(Level 3)
June 30, 2015
Financial assets:
Securities held-to-maturity	$	26,204		26,251		—		26,251		—
Loans, net		1,411,049		1,420,561		—		—		1,420,561
Financial liabilities:
Deposits and securities sold under agreements to repurchase		1,714,560		1,554,841		—		—		1,554,841
Off-balance sheet instruments:
Commitments to extend credit		—		—		—		—		—
Standby letters of credit		—		—		—		—		—
December 31, 2014
Financial assets:
Securities held-to-maturity	$	28,123		28,400		—		28,400		—
Loans, net		1,329,865		1,346,569		—		—		1,346,569
Financial liabilities:
Deposits and securities sold under agreements to repurchase		1,663,707		1,530,607		—		—		1,530,607
Off-balance sheet instruments:
Commitments to extend credit		—		—		—		—		—
Standby letters of credit		—		—		—		—		—

(¹)	Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction.