Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of carrying amount and estimated fair value of financial instruments

The fair value estimates presented herein are based on pertinent information available to management as of the periods indicated.



	At September 30, 2015
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	102,761	$	102,761	$	—	$	—	$	102,761
Securities available for sale	291,147		—		291,147		—		291,147
FHLB, FRB, and other stock, at cost	22,490		—		22,490		—		22,490
Loans held for investment, net	2,151,711		—		—		2,240,308		2,240,308
Accrued interest receivable	9,083		9,083		—		—		9,083
Other real estate owned	711		—		—		711		711

Liabilities:
Deposit accounts	2,139,207		1,634,484		506,063		—		2,140,547
FHLB advances	144,000		—		144,252		—		144,252
Other borrowings	47,483		—		47,043		—		47,043
Subordinated debentures	70,310		—		69,092		—		69,092
Accrued interest payable	216		216		—		—		216



	At December 31, 2014
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	110,925	$	110,925	$	—	$	—	$	110,925
Securities available for sale	201,638		—		201,638		—		201,638
FHLB, FRB, and other stock, at cost	17,067		17,067		—		—		17,067
Loans held for investment, net	1,616,422		—		—		1,686,046		1,686,046
Accrued interest receivable	7,131		7,131		—		—		7,131
Other real estate owned	1,037		—		—		1,037		1,037

Liabilities:
Deposit accounts	1,630,826		1,216,847		519,898		—		1,736,745
FHLB advances	70,000		70,025		—		—		70,025
Other borrowings	46,643		—		48,312		—		48,312
Subordinated debentures	70,310		—		33,456		—		33,456
Accrued interest payable	209		209		—		—		209



	At September 30, 2014
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	103,631	$	103,631	$	—	$	—	$	103,631
Securities available for sale	282,202		—		282,202		—		282,202
FHLB, FRB, and other stock, at cost	18,643		18,643		—		—		18,643
Loans held for investment, net	1,537,237		—		—		1,521,466		1,521,466
Accrued interest receivable	6,762		6,762		—		—		6,762
Other real estate owned	752		—		—		752		752

Liabilities:
Deposit accounts	1,543,466		1,157,972		371,574		—		1,529,546
FHLB advances	150,000		149,999		—		—		149,999
Other borrowings	45,561		—		46,095		—		46,095
Subordinated debentures	70,310		—		34,142		—		34,142
Accrued interest payable	177		177		—		—		177

Schedule of Company's financial instruments measured at fair value on a recurring basis

The following fair value hierarchy table presents information about the Company’s financial instruments measured at fair value on a recurring basis at the dates indicated:



	September 30, 2015
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Investment securities available for sale:
Municipal bonds	$	—	$	130,004	$	—	$	130,004
Mortgage-backed securities	—		161,143		—		161,143
Total securities available for sale	$	—	$	291,147	$	—	$	291,147



	September 30, 2014
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Investment securities available for sale:
Municipal bonds	$	—	$	98,585	$	—	98,585
Mortgage-backed securities	—		183,617		—		183,617
Total securities available for sale	$	—	$	282,202	$	—	$	282,202

Schedule of Company's assets measured at fair value on a non-recurring basis

The following table provides a summary of the financial instruments the Company measures at fair value on a non-recurring basis as of the periods indicated:



	September 30, 2015
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	1,022	$	1,022
Other real estate owned	—		—		711		711
Total assets	$	—	$	—	$	1,733	$	1,733



	September 30, 2014
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	1,241	$	1,241
Other real estate owned	—		—		752		752
Total assets	$	—	$	—	$	1,993	$	1,993

Schedule of quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis

The following table presents quantitative information about Level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis for the periods indicated:



	September 30, 2015
				Range
	Fair Value		Valuation Techniques	Rate	Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial and industrial	$	169	Collateral valuation	6.70%	7	0 - 10%
Commercial owner occupied	361		Collateral valuation	6.75%	6	0 - 10%
Real estate loans:
Commercial non-owner occupied	443		Collateral valuation	7.00%	11	0 - 15%
One-to-four family	27		Collateral valuation	7.00 - 15.00%	4 - 14	0 - 10%
Land	22		Collateral valuation	13.00%	15	0 - 10%
Total collateral dependent impaired loans	$	1,022

Other real estate owned
Land	$	711	Collateral valuation	—	—	0 - 10%
Total other real estate owned	$	711



	September 30, 2014
				Range
	Fair Value		Valuation Techniques	Rate	Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial owner occupied	398		Collateral valuation	6.75%	8	0 - 10%
Real estate loans:
Commercial non-owner occupied	500		Collateral valuation	7.00%	13	0 - 15%
One-to-four family	343		Collateral valuation	4.50% - 15.00%	6 - 23	0 - 10%
Total collateral dependent impaired loans	$	1,241

Other real estate owned
Land	$	752	Collateral valuation	—	—	0-10%
Total other real estate owned	$	752