Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the financial instruments carried at fair value as of March 31, 2016 and December 31, 2015, 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
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
March 31, 2016
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	53,572	—	53,572	—
Mortgage-backed securities	192,358		—	192,358	—
Asset-backed securities	29,814		—	29,814	—
State and municipal securities	32,615		—	32,615	—
Total investment securities available-for-sale	308,359		—	308,359	—
Loans held for sale	6,236		—	6,236	—
Other assets	27,006		—	—	27,006
Total assets at fair value	$	341,601	—	314,595	27,006
December 31, 2015
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	76,909	—	76,909	—
Mortgage-backed securities	191,915		—	191,915	—
Asset-backed securities	31,034		—	31,034	—
State and municipal securities	31,270		—	31,270	—
Total investment securities available-for-sale	331,128		—	331,128	—
Loans held for sale	10,135		—	10,135	—
Other assets	26,672		—	—	26,672
Total assets at fair value	$	367,935	—	341,263	26,672

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



	Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
March 31, 2016
Other real estate owned	$	5,565	—	—	5,565
Impaired loans, net (¹)	7,090		—	—	7,090
Total	$	12,655	—	—	12,655
December 31, 2015
Other real estate owned	$	5,410	—	—	5,410
Impaired loans, net (¹)	8,436		—	—	8,436
Total	$	13,846	—	—	13,846


⁽¹⁾	Amount is net of a valuation allowance of $183,000 at March 31, 2016 and $194,000 at December 31, 2015 as required by ASC 310, “Receivables.”

Changes in Fair Value Due to Observable Factors

The table below includes a rollforward of the balance sheet amounts for the three months ended March 31, 2016 and 2015 (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 Three Months Ended March 31,
	2016			2015
	Other Assets		Other Liabilities	Other Assets		Other Liabilities
Fair value, January 1	$	26,672	—	$	17,331	—
Total realized gains included in income	124		—	392		—
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31	—		—			—
Purchases, issuances and settlements, net	210		—	7,402		—
Transfers out of Level 3	—		—	—		—
Fair value, March 31	$	27,006	—	$	25,125	—
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31	$	124	—	392		—

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 March 31, 2016 and December 31, 2015. 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.



	Carrying/ Notional		Estimated	Quoted Market Prices in an Active Market	Models with Significant Observable Market Parameters	Models with Significant Unobservable Market Parameters
(in Thousands)	Amount		Fair Value (¹)	(Level 1)	(Level 2)	(Level 3)
March 31, 2016
Financial assets:
Securities held-to-maturity	$	29,962	30,232	—	30,232	—
Loans, net	1,528,010		1,532,293	—	—	1,532,293
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,828,819		1,605,048	—	—	1,605,048
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—
December 31, 2015
Financial assets:
Securities held-to-maturity	$	28,195	28,365	—	28,365	—
Loans, net	1,443,179		1,443,738	—	—	1,443,738
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,791,885		1,549,414	—	—	1,549,414
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.