Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2017

Assets Measured at Fair Value on a Recurring Basis

There were no liabilities measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016.

(Dollars in thousands)	Fair Value Measurements Using						Total
June 30, 2017	Level 1		Level 2		Level 3		Fair Value
Securities available for sale
U.S. Government agency obligations	$	—	$	133,805	$	—	$	133,805
U.S. Treasury notes		—		4,873		—		4,873
Mortgage-backed securities, residential		—		22,507		—		22,507
Asset backed securities		—		12,799		—		12,799
State and municipal		—		25,151		—		25,151
Corporate bonds		—		25,904		—		25,904
SBA pooled securities		—		144		—		144
Mutual fund		2,023		—		—		2,023
	$	2,023	$	225,183	$	—	$	227,206

(Dollars in thousands)	Fair Value Measurements Using						Total
December 31, 2016	Level 1		Level 2		Level 3		Fair Value
Securities available for sale
U.S. Government agency obligations	$	—	$	180,942	$	—	$	180,942
Mortgage-backed securities, residential		—		24,990		—		24,990
Asset backed securities		—		12,902		—		12,902
State and municipal		—		26,637		—		26,637
Corporate bonds		—		27,390		—		27,390
SBA pooled securities		—		157		—		157
Mutual fund		2,011		—		—		2,011
	$	2,011	$	273,018	$	—	$	275,029

Fair Value of Assets Measured on Non-recurring Basis

There were no liabilities measured at fair value on a non-recurring basis at June 30, 2017 and December 31, 2016.

(Dollars in thousands)	Fair Value Measurements Using						Total
June 30, 2017	Level 1		Level 2		Level 3		Fair Value
Impaired loans
Commercial real estate	$	—	$	—	$	43	$	43
Commercial		—		—		11,603		11,603
Factored receivables		—		—		1,745		1,745
Other real estate owned⁽¹⁾
Commercial		—		—		92		92
Construction, land development, land		—		—		2,000		2,000
1-4 family residential properties		—		—		83		83
	$	—	$	—	$	15,566	$	15,566

(Dollars in thousands)	Fair Value Measurements Using						Total
December 31, 2016	Level 1		Level 2		Level 3		Fair Value
Impaired loans
Commercial real estate	$	—	$	—	$	417	$	417
Construction, land development, land		—		—		252		252
1-4 family residential properties		—		—		7		7
Commercial		—		—		12,921		12,921
Factored receivables		—		—		1,630		1,630
PCI		—		—		170		170
Other real estate owned⁽¹⁾
Commercial		—		—		698		698
1-4 family residential properties		—		—		485		485
Construction, land development, land		—		—		467		467
	$	—	$	—	$	17,047	$	17,047

⁽¹⁾ Represents the fair value of OREO that was adjusted during the period and subsequent to its initial classification as OREO.

Estimated Fair Value of Company's Financial Assets and Financial Liabilities

The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at June 30, 2017 and December 31, 2016 were as follows:

(Dollars in thousands)	Carrying		Fair Value Measurements Using						Total
June 30, 2017	Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	117,502	$	117,502	$	—	$	—	$	117,502
Securities - held to maturity		26,036		—		17,902		8,464		26,366
Loans not previously presented, net		2,261,912		—		—		2,270,737		2,270,737
FHLB stock		14,566	N/A		N/A		N/A		N/A
Accrued interest receivable		11,699		—		11,699		—		11,699

Financial liabilities:
Deposits		2,072,181		—		2,071,279		—		2,071,279
Customer repurchase agreements		14,959		—		14,959		—		14,959
Federal Home Loan Bank advances		340,000		—		339,957		—		339,957
Subordinated notes		48,780		—		50,768		—		50,768
Junior subordinated debentures		32,943		—		33,100		—		33,100
Accrued interest payable		2,933		—		2,933		—		2,933

(Dollars in thousands)	Carrying		Fair Value Measurements Using						Total
December 31, 2016	Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	114,514	$	114,514	$	—	$	—	$	114,514
Securities - held to maturity		29,352		—		27,498		3,323		30,821
Loans not previously presented, net		1,996,822		—		—		2,002,487		2,002,487
FHLB stock		8,430	N/A		N/A		N/A		N/A
Accrued interest receivable		12,663		—		12,663		—		12,663

Financial liabilities:
Deposits		2,015,785		—		2,014,922		—		2,014,922
Customer repurchase agreements		10,490		—		10,490		—		10,490
Federal Home Loan Bank advances		230,000		—		230,000		—		230,000
Subordinated notes		48,734		—		50,920		—		50,920
Junior subordinated debentures		32,740		—		32,905		—		32,905
Accrued interest payable		2,682		—		2,682		—		2,682