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Fair Values (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis
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 December 31, 2017
 
 
 
 
 
 
 
Recurring basis:
 
 
 
 
 
 
 
Available-for-sale securities(1)
$
22,842

 
$
—

 
$
—

 
$
22,842

Non-recurring basis:
 
 
 
 
 
 
 
Impaired real estate(2)
12,400

 
—

 
—

 
12,400

Impaired real estate available and held for sale(3)
800

 
—

 
—

 
800

Impaired land and development(4)
21,400

 
—

 
—

 
21,400

As of December 31, 2016
 
 
 
 
 
 
 
Recurring basis:
 
 
 
 
 
 
 
Derivative assets(1)
$
727

 
$
—

 
$
727

 
$
—

Derivative liabilities(1)
47

 
—

 
47

 
—

Available-for-sale securities(1)
21,666

 
—

 
—

 
21,666

Non-recurring basis:
 
 
 
 
 
 
 
Impaired loans(5)
7,200

 
—

 
—

 
7,200

Impaired real estate(6)
3,063

 
—

 
—

 
3,063

_______________________________________________________________________________
(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.
(2)
The Company recorded an impairment on a real estate asset with a fair value of $12.4 million based on market comparable sales.
(3)
The Company recorded an impairment on a residential real estate asset available and held for sale based on market comparable sales.
(4)
The Company recorded an impairment on a land and development asset with a fair value of $21.4 million based on a discount rate of 6% and a 10 year holding period.
(5)
The Company recorded a provision for loan losses on one loan with a fair value of $5.2 million using an appraisal based on market comparable sales. In addition, the Company recorded a recovery of loan losses on one loan with a fair value of $2.0 million based on proceeds to be received.
(6)
The Company recorded an impairment on a real estate asset with a fair value of $3.1 million based on a discount rate of 11% using discounted cash flows over a two year sellout period.
Summary of changes in Level 3 available-for-sale securities reported at fair value
The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company's consolidated balance sheets for the years ended December 31, 2017 and 2016 ($ in thousands):
 
 
2017
 
2016
Beginning balance
 
$
21,666

 
$
1,161

Purchases
 
—

 
20,240

Repayments
 
(10
)
 
(10
)
Unrealized gains recorded in other comprehensive income
 
1,186

 
275

Ending balance
 
$
22,842

 
$
21,666