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Fair Values (Tables)
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis by levels
The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands):
 
 
 
Fair Value Using
 
Total
 
Quoted market
prices in
active markets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
As of September 30, 2016
 
 
 
 
 
 
 
Recurring basis:
 
 
 
 
 
 
 
Derivative assets(1)
$
139

 
$
—

 
$
139

 
$
—

Derivative liabilities(1)
768

 
—

 
768

 
—

Available-for-sale securities(1)
5,780

 
—

 
—

 
5,780

Non-recurring basis:
 
 
 
 
 
 
 
Impaired loans(2)
174,899

 
—

 
—

 
174,899

Impaired land and development(3)
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
Recurring basis:
 
 
 
 
 
 
 
Derivative assets(1)
$
1,522

 
$
—

 
$
1,522

 
$
—

Derivative liabilities(1)
131

 
—

 
131

 
—

Available-for-sale securities(1)
1,161

 
—

 
—

 
1,161

Non-recurring basis:
 
 
 
 
 
 
 
Impaired loans(4)
3,200

 
—

 
—

 
3,200


____________________________________________________________
(1)
The fair value of the Company's derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company's available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3. During the nine months ended September 30, 2016, the Company acquired $4.4 million of available for sale securities. There were no other material changes in Level 3 assets and there were no transfers into/out of Level 3 for the nine months ended September 30, 2016.
(2)
The Company recorded a provision for loan losses on one loan with a fair value of $144.7 million based on expected proceeds from liquidation. In addition, the Company recorded a recovery of loan losses on one loan with a fair value of $30.2 million based on market comparable sales and estimated closing costs of 4.0%.
(3)
The Company recorded an impairment of $3.8 million equal to the carrying value on a land and development asset due to the Company's expectation that it will receive no future cash flows from the asset.
(4)
The Company recorded a provision for loan losses on one loan with a fair value of $3.2 million based on a discounted cash flow analysis using a discount rate of 14.3%.