Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize financial assets and liabilities recorded at fair value on a recurring basis, segregated by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	September 30, 2016
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Agency securities	$	1,375	$	—	$	1,375	$	—
Municipal securities		122,074		—		122,074		—
Single issue trust preferred securities		48,520		—		48,520		—
Corporate securities		15,022		—		15,022		—
Agency MBS		33,792		—		33,792		—
Equity securities		73		55		18		—

Total available-for-sale securities		220,856		55		220,801		—
Fair value loans		4,464		—		4,464		—
Deferred compensation assets		3,842		3,842		—		—
Deferred compensation liabilities		3,842		3,842		—		—
Derivative liabilities		450		—		450		—


	December 31, 2015
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Agency securities	$	30,702	$	—	$	30,702	$	—
Municipal securities		128,678		—		128,678		—
Single issue trust preferred securities		47,832		—		47,832		—
Corporate securities		70,333		—		70,333		—
Certificates of deposit		5,000		—		5,000		—
Agency MBS		83,556		—		83,556		—
Equity securities		72		54		18		—

Total available-for-sale securities		366,173		54		366,119		—
Fair value loans		4,886		—		4,886		—
Deferred compensation assets		3,464		3,464		—		—
Deferred compensation liabilities		3,464		3,464		—		—
Derivative liabilities		251		—		251		—

Assets Measured at Fair Value on Nonrecurring Basis

The following tables summarize assets measured at fair value on a nonrecurring basis, segregated by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	September 30, 2016
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	6,305	$	—	$	—	$	6,305
OREO, non-covered		4,002		—		—		4,002
OREO, covered		2,257		—		—		2,257

	December 31, 2015
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	9,164	$	—	$	—	$	9,164
OREO, non-covered		4,819		—		—		4,819
OREO, covered		4,034		—		—		4,034

Quantitative Information for Assets Measured at Fair Value on Nonrecurring Basis

The following table presents quantitative information for assets measured at fair value on a nonrecurring basis using Level 3 valuation inputs as of the dates indicated:


	Valuation	Unobservable	Discount Range (Weighted Average)
	Technique	Input	September 30, 2016	December 31, 2015
Impaired loans, non-covered	Discounted appraisals⁽¹⁾	Appraisal adjustments⁽²⁾	3% to 47% (31%)	1% to 39% (21%)
OREO, non-covered	Discounted appraisals⁽¹⁾	Appraisal adjustments⁽²⁾	0% to 66% (28%)	1% to 100% (33%)
OREO, covered	Discounted appraisals⁽¹⁾	Appraisal adjustments⁽²⁾	0% to 89% (61%)	21% to 65% (46%)

(1)	Fair value is generally based on appraisals of the underlying collateral.

(2)	Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.

Carrying Amounts and Fair Values of Financial Instruments

The following tables present the carrying amounts and fair values of financial instruments, segregated by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	September 30, 2016
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	65,929	$	65,929	$	65,929	$	—	$	—
Securities available for sale		220,856		220,856		55		220,801		—
Securities held to maturity		72,182		72,607		—		72,607		—
Loans held for investment, net of allowance		1,816,751		1,833,791		—		4,464		1,829,327
FDIC indemnification asset		14,332		7,226		—		—		7,226
Interest receivable		5,498		5,498		—		5,498		—
Deferred compensation assets		3,842		3,842		3,842		—		—

Liabilities
Demand deposits		473,509		473,509		—		473,509		—
Interest-bearing demand deposits		339,563		339,563		—		339,563		—
Savings deposits		441,724		441,724		—		441,724		—
Time deposits		527,103		528,183		—		528,183		—
Securities sold under agreements to repurchase		118,532		120,070		—		120,070		—
Interest payable		1,252		1,252		—		1,252		—
FHLB and other borrowings		105,707		110,172		—		110,172		—
Derivative financial liabilities		450		450		—		450		—
Deferred compensation liabilities		3,842		3,842		3,842		—		—

	December 31, 2015
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	51,787	$	51,787	$	51,787	$	—	$	—
Securities available for sale		366,173		366,173		54		366,119		—
Securities held to maturity		72,541		72,490		—		72,490		—
Loans held for investment, net of allowance		1,686,308		1,685,061		—		4,886		1,680,175
FDIC indemnification asset		20,844		10,753		—		—		10,753
Interest receivable		6,007		6,007		—		6,007		—
Deferred compensation assets		3,464		3,464		3,464		—		—

Liabilities
Demand deposits		451,511		451,511		—		451,511		—
Interest-bearing demand deposits		347,705		347,705		—		347,705		—
Savings deposits		530,585		530,585		—		530,585		—
Time deposits		543,458		541,059		—		541,059		—
Securities sold under agreements to repurchase		138,614		140,880		—		140,880		—
Interest payable		1,260		1,260		—		1,260		—
FHLB and other borrowings		80,756		85,774		—		85,774		—
Derivative financial liabilities		251		251		—		251		—
Deferred compensation liabilities		3,464		3,464		3,464		—		—