Fair Value (Tables)

12 Months Ended

Dec. 31, 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, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	December 31, 2016
	Total Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Agency securities	$	1,345	$	—	$	1,345	$	—
Municipal securities		113,331		—		113,331		—
Single issue trust preferred securities		19,939		—		19,939		—
Mortgage-backed Agency securities		30,891		—		30,891		—
Equity securities		73		55		18		—

Total available-for-sale securities		165,579		55		165,524		—
Fair value loans		4,701		—		4,701		—
Deferred compensation assets		3,224		3,224		—		—
Deferred compensation liabilities		3,224		3,224		—		—
Derivative liabilities		167		—		167		—


	December 31, 2015
	Total Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Total 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		—
Mortgage-backed Agency securities		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 present assets measured at fair value on a nonrecurring basis, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	December 31, 2016
	Total Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Impaired loans, non-covered	$	4,078	$	—	$	—	$	4,078
OREO, non-covered		5,109		—		—		5,109
OREO, covered		265		—		—		265

	December 31, 2015
	Total Fair Value		Fair Value Measurements Using
	Total Fair Value		Level 1		Level 2		Level 3
(Amounts in thousands)
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 provides quantitative information for assets measured at fair value on a nonrecurring basis using Level 3 valuation inputs as of the dates indicated:

Valuation

Technique

Unobservable

Input

Discount Range (Weighted Average)

December 31, 2016

December 31, 2015

Impaired loans, non-covered

Discounted appraisals⁽¹⁾

Appraisal adjustments⁽²⁾

3% to 39% (17%)

1% to 39% (21%)

OREO, non-covered

Discounted appraisals⁽¹⁾

Appraisal adjustments⁽²⁾

0% to 88% (30%)

1% to 100% (33%)

OREO, covered

Discounted appraisals⁽¹⁾

Appraisal adjustments⁽²⁾

0% to 44% (40%)

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, by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	December 31, 2016
	Carrying Amount		Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	76,307	$	76,307	$	76,307	$	—	$	—
Securities available for sale		165,579		165,579		55		165,524		—
Securities held to maturity		47,133		47,266		—		47,266		—
Loans held for investment, net of allowance		1,835,000		1,805,999		—		4,701		1,801,298
FDIC indemnification asset		12,173		8,112		—		—		8,112
Interest receivable		5,553		5,553		—		5,553		—
Deferred compensation assets		3,224		3,224		3,224		—		—

Liabilities
Demand deposits		427,705		427,705		—		427,705		—
Interest-bearing demand deposits		378,339		378,339		—		378,339		—
Savings deposits		523,260		523,260		—		523,260		—
Time deposits		512,034		507,917		—		507,917		—
Securities sold under agreements to repurchase		98,005		98,879		—		98,879		—
Interest payable		1,280		1,280		—		1,280		—
FHLB and other borrowings		80,708		83,551		—		83,551		—
Derivative financial liabilities		167		167		—		167		—
Deferred compensation liabilities		3,224		3,224		3,224		—		—


	December 31, 2015
	Carrying Amount		Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Carrying 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		—		—