10-Q

UNITEDSTATES

SECURITIES ANDEXCHANGECOMMISSION

WASHINGTON,D.C. 20549

FORM 10-Q

[X]	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2016.
[   ]	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______
	Commission file number 001-15373

ENTERPRISE FINANCIAL SERVICES CORP

Incorporated in the State of Delaware

I.R.S. Employer Identification # 43-1706259

Address: 150 North Meramec

Clayton, MO 63105

Telephone: (314) 725-5500

___________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes [X]  No [   ] 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X]  No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [ ]	Accelerated filer [X]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)	Smaller reporting company [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes [   ]  No [X]

As of July 25, 2016, the Registrant had 20,018,101 shares of outstanding common stock, $0.01 par value.

This document is also available through our website at http://www.enterprisebank.com.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements
Condensed Consolidated Balance Sheets (Unaudited)	1
Condensed Consolidated Statements of Operations (Unaudited)	2
Condensed Consolidated Statements of Comprehensive Income (Unaudited)	3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited)	4
Condensed Consolidated Statements of Cash Flows (Unaudited)	5
Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures About Market Risk	50
Item 4. Controls and Procedures	51
PART II - OTHER INFORMATION
Item 1.  Legal Proceedings	51
Item 1A.  Risk Factors	51
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 6. Exhibits	52
Signatures	54

PART 1 - ITEM 1 - FINANCIAL STATEMENTS

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)	June 30, 2016			December 31, 2015
Assets
Cash and due from banks	$	50,370		$	47,935
Federal funds sold	317			91
Interest-bearing deposits (including $1,870 and $1,320 pledged as collateral)	59,609			46,131
Total cash and cash equivalents	110,296			94,157
Interest-bearing deposits greater than 90 days	1,000			1,000
Securities available for sale	478,514			451,770
Securities held to maturity	42,514			43,714
Loans held for sale	9,669			6,598
Portfolio loans	2,883,909			2,750,737
Less: Allowance for loan losses	35,498			33,441
Portfolio loans, net	2,848,411			2,717,296
Purchased credit impaired loans, net of the allowance for loan losses ($8,551 and $10,175, respectively)	47,978			64,583
Total loans, net	2,896,389			2,781,879
Other real estate	4,901			8,366
Other investments, at cost	17,403			17,455
Fixed assets, net	14,512			14,842
Accrued interest receivable	8,123			8,399
State tax credits held for sale, including $4,774 and $5,941 carried at fair value, respectively	44,918			45,850
Goodwill	30,334			30,334
Intangible assets, net	2,589			3,075
Other assets	100,503			101,044
Total assets	$	3,761,665		$	3,608,483
Liabilities and Shareholders' Equity
Demand deposits	$	753,173		$	717,460
Interest-bearing transaction accounts	628,505			564,420
Money market accounts	1,019,304			1,053,662
Savings	105,224			92,861
Certificates of deposit:
Brokered	166,507			39,573
Other	355,523			316,615
Total deposits	3,028,236			2,784,591
Subordinated debentures	56,807			56,807
Federal Home Loan Bank advances	78,000			110,000
Other borrowings	200,362			270,326
Accrued interest payable	625			629
Other liabilities	26,006			35,301
Total liabilities	3,390,036			3,257,654
Shareholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	—			—
Common stock, $0.01 par value; 30,000,000 shares authorized; 20,234,235 and 20,093,119 shares issued, respectively	202			201
Treasury stock, at cost; 255,018 and 76,000 shares, respectively	(6,454		)	(1,743		)
Additional paid in capital	211,227			210,589
Retained earnings	161,137			141,564
Accumulated other comprehensive income	5,517			218
Total shareholders' equity	371,629			350,829
Total liabilities and shareholders' equity	$	3,761,665		$	3,608,483

See accompanying notes to consolidated financial statements.

1

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

	Three months ended June 30,						Six months ended June 30,
(in thousands, except per share data)	2016			2015			2016			2015
Interest income:
Interest and fees on loans	$	34,183		$	29,875		$	66,791		$	59,483
Interest on debt securities:
Taxable	2,397			2,117			4,784			4,258
Nontaxable	328			285			660			582
Interest on interest-bearing deposits	58			38			119			85
Dividends on equity securities	67			37			139			95
Total interest income	37,033			32,352			72,493			64,503
Interest expense:
Interest-bearing transaction accounts	329			279			635			556
Money market accounts	1,013			672			2,019			1,314
Savings accounts	63			54			123			104
Certificates of deposit	1,183			1,594			2,202			3,185
Subordinated debentures	361			308			709			610
Federal Home Loan Bank advances	191			24			373			73
Notes payable and other borrowings	110			141			221			336
Total interest expense	3,250			3,072			6,282			6,178
Net interest income	33,783			29,280			66,211			58,325
Provision for portfolio loan losses	716			2,150			1,549			3,730
Provision reversal for purchased credit impaired loan losses	(336		)	—			(409		)	(3,270		)
Net interest income after provision for loan losses	33,403			27,130			65,071			57,865
Noninterest income:
Service charges on deposit accounts	2,188			1,998			4,231			3,854
Wealth management revenue	1,644			1,778			3,306			3,518
Other service charges and fee income	952			840			1,820			1,593
Gain on state tax credits, net	153			74			671			748
Gain on sale of other real estate	706			9			828			29
Gain on sale of investment securities	—			—			—			23
Change in FDIC loss share receivable	—			(945		)	—			(3,209		)
Miscellaneous income	1,406			2,052			2,198			2,833
Total noninterest income	7,049			5,806			13,054			9,389
Noninterest expense:
Employee compensation and benefits	12,660			11,274			25,307			22,787
Occupancy	1,609			1,621			3,292			3,315
Data processing	1,187			1,127			2,291			2,157
FDIC and other insurance	738			665			1,461			1,391
Professional fees	719			854			1,403			1,826
Loan legal and other real estate expense	353			548			710			826
FDIC clawback	—			50			—			462
Other	4,087			3,319			7,651			6,644
Total noninterest expense	21,353			19,458			42,115			39,408
Income before income tax expense	19,099			13,478			36,010			27,846
Income tax expense	6,747			4,762			12,633			9,784
Net income	$	12,352		$	8,716		$	23,377		$	18,062
Earnings per common share
Basic	$	0.62		$	0.44		$	1.17		$	0.91
Diluted	0.61			0.43			1.16			0.90

See accompanying notes to consolidated financial statements.

2

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	Three months ended June 30,					Six months ended June 30,
(in thousands)	2016		2015			2016		2015
Net income	$	12,352	$	8,716		$	23,377	$	18,062
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investment securities arising during the period, net of income tax expense (benefit) for three months of $986 and $(1,322), and for six months of $3,290 and $(277), respectively	1,588		(2,130		)	5,299		(418		)
Less: Reclassification adjustment for realized gains on sale of securities available for sale included in net income, net of income tax expense for three months of $0 and $0, and for six months of $0 and $9, respectively	—		—			—		(14		)
Total other comprehensive income (loss)	1,588		(2,130		)	5,299		(432		)
Total comprehensive income	$	13,940	$	6,586		$	28,676	$	17,630

See accompanying notes to consolidated financial statements.

3

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

(in thousands, except per share data)	Preferred Stock		Common Stock		Treasury Stock			Additional paid in capital			Retained earnings			Accumulated other comprehensive income (loss)			Total shareholders' equity
Balance January 1, 2016	$	—	$	201	$	(1,743	)	$	210,589		$	141,564		$	218		$	350,829
Net income	—		—		—			—			23,377			—			23,377
Other comprehensive income	—		—		—			—			—			5,299			5,299
Cash dividends paid on common shares, $0.19 per share	—		—		—			—			(3,804		)				(3,804		)
Repurchase of common shares	—		—		(4,711		)	—			—			—			(4,711		)
Issuance under equity compensation plans, 141,116 shares, net	—		1		—			(1,812		)	—			—			(1,811		)
Share-based compensation	—		—		—			1,626			—			—			1,626
Excess tax benefit related to equity compensation plans	—		—		—			824			—			—			824
Balance June 30, 2016	$	—	$	202	$	(6,454	)	$	211,227		$	161,137		$	5,517		$	371,629
(in thousands, except per share data)	Preferred Stock		Common Stock		Treasury Stock			Additional paid in capital			Retained earnings			Accumulated other comprehensive income (loss)			Total shareholders' equity
Balance January 1, 2015	$	—	$	199	$	(1,743	)	$	207,731		$	108,373		$	1,681		$	316,241
Net income	—		—		—			—			18,062			—			18,062
Other comprehensive loss	—		—		—			—			—			(432		)	(432		)
Cash dividends paid on common shares, $0.1125 per share	—		—		—			—			(2,252		)	—			(2,252		)
Issuance under equity compensation plans, 109,500 shares, net	—		1		—			(1,081		)	—			—			(1,080		)
Share-based compensation	—		—		—			1,738			—			—			1,738
Excess tax benefit related to equity compensation plans	—		—		—			153			—			—			153
Balance June 30, 2015	$	—	$	200	$	(1,743	)	$	208,541		$	124,183		$	1,249		$	332,430

See accompanying notes to consolidated financial statements.

4

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Six months ended June 30,
(in thousands)	2016			2015
Cash flows from operating activities:
Net income	$	23,377		$	18,062
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	1,070			1,009
Provision for loan losses	1,140			460
Deferred income taxes	3,509			2,803
Net amortization of debt securities	1,513			1,661
Amortization of intangible assets	486			569
Gain on sale of investment securities	—			(23		)
Mortgage loans originated for sale	(70,018		)	(69,434		)
Proceeds from mortgage loans sold	67,278			68,252
Gain on sale of other real estate	(828		)	(29		)
Gain on state tax credits, net	(671		)	(748		)
Excess tax benefit of share-based compensation	(824		)	(153		)
Share-based compensation	1,626			1,738
Valuation adjustment on other real estate	1			82
Net accretion of loan discount and indemnification asset	(5,692		)	(3,382		)
Changes in:
Accrued interest receivable	276			36
Accrued interest payable	(4		)	(23		)
Other assets	(5,284		)	(2,601		)
Other liabilities	(9,295		)	196
Net cash provided by (used in) operating activities	7,660			18,475
Cash flows from investing activities:
Net increase in loans	(112,500		)	(99,282		)
Net cash proceeds received from FDIC loss share receivable	—			1,574
Proceeds from the sale of securities, available for sale	—			41,069
Proceeds from the paydown or maturity of securities, available for sale	29,398			25,813
Proceeds from the paydown or maturity of securities, held to maturity	1,145			1,078
Proceeds from the redemption of other investments	34,314			25,746
Proceeds from the sale of state tax credits held for sale	3,952			4,489
Proceeds from the sale of other real estate	6,355			3,723
Payments for the purchase/origination of:
Available for sale debt and equity securities	(49,012		)	(74,069		)
Other investments	(34,263		)	(19,641		)
State tax credits held for sale	(2,349		)	(3,425		)
Fixed assets	(740		)	(983		)
Net cash provided by (used in) investing activities	(123,700		)	(93,908		)
Cash flows from financing activities:
Net increase in noninterest-bearing deposit accounts	35,713			15,328
Net increase in interest-bearing deposit accounts	207,932			184,721
Proceeds from Federal Home Loan Bank advances	981,000			531,900
Repayments of Federal Home Loan Bank advances	(1,013,000		)	(602,900		)
Repayments of notes payable	—			(600		)
Net decrease in other borrowings	(69,964		)	(50,737		)
Cash dividends paid on common stock	(3,804		)	(2,252		)
Excess tax benefit of share-based compensation	824			153
Payments for the repurchase of common stock	(4,711		)	—
Issuance of common stock, net	(1,811		)	(1,080		)
Net cash provided by (used in) financing activities	132,179			74,533
Net increase (decrease) in cash and cash equivalents	16,139			(900		)
Cash and cash equivalents, beginning of period	94,157			100,696
Cash and cash equivalents, end of period	$	110,296		$	99,796
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	6,286		$	6,201
Income taxes	19,124			6,517
Noncash transactions:
Transfer to other real estate owned in settlement of loans	$	2,683		$	5,998
Sales of other real estate financed	140			—

See accompanying notes to consolidated financial statements.

5

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used by Enterprise Financial Services Corp (the "Company" or "Enterprise") in the preparation of the condensed consolidated financial statements are summarized below:

Business and Consolidation

Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers located in the St. Louis, Kansas City, and Phoenix metropolitan markets through its banking subsidiary, Enterprise Bank & Trust (the "Bank").

Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

Basis of Financial Statement Presentation

The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with the accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. In 2016, the Company changed its presentation of certificates of deposit on the Condensed Consolidated Balance Sheets to separate brokered deposit sources from other sources.  The corresponding prior period balances were reclassified to conform to the current year presentation. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

6

NOTE 2 - EARNINGS PER SHARE

Basic earnings per common share data is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Common shares outstanding include common stock and restricted stock awards where recipients have satisfied the vesting terms. Diluted earnings per common share gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method.

The following table presents a summary of per common share data and amounts for the periods indicated.

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2016		2015		2016		2015
Net income as reported	$	12,352	$	8,716	$	23,377	$	18,062
Weighted average common shares outstanding	20,003		19,978		20,002		19,958
Additional dilutive common stock equivalents	213		190		224		211
Weighted average diluted common shares outstanding	20,216		20,168		20,226		20,169
Basic earnings per common share:	$	0.62	$	0.44	$	1.17	$	0.91
Diluted earnings per common share:	$	0.61	$	0.43	$	1.16	$	0.90

For the three and six months ended June 30, 2016 and 2015, the amount of common stock equivalents excluded from the earnings per share calculations because their effect was anti-dilutive was zero, and 0.2 million common stock equivalents, respectively.

7

NOTE 3 - INVESTMENTS

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available for sale and held to maturity:

	June 30, 2016
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	98,064	$	1,622	$	—		$	99,686
Obligations of states and political subdivisions	37,468		1,804		(307		)	38,965
Agency mortgage-backed securities	333,549		6,587		(273		)	339,863
Total securities available for sale	$	469,081	$	10,013	$	(580	)	$	478,514
Held to maturity securities:
Obligations of states and political subdivisions	$	14,795	$	471	$	(3	)	$	15,263
Agency mortgage-backed securities	27,719		855		—			28,574
Total securities held to maturity	$	42,514	$	1,326	$	(3	)	$	43,837

	December 31, 2015
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	98,699	$	309	$	—		$	99,008
Obligations of states and political subdivisions	40,700		1,343		(342		)	41,701
Agency mortgage-backed securities	311,516		2,046		(2,501		)	311,061
Total securities available for sale	$	450,915	$	3,698	$	(2,843	)	$	451,770
Held to maturity securities:
Obligations of states and political subdivisions	$	14,831	$	63	$	(50	)	$	14,844
Agency mortgage-backed securities	28,883		—		(286		)	28,597
Total securities held to maturity	$	43,714	$	63	$	(336	)	$	43,441

At June 30, 2016, and December 31, 2015, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government-sponsored enterprises. Available for sale securities having a fair value of $336.8 million and $334.4 million at June 30, 2016, and December 31, 2015, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities at June 30, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 4 years.

8

	Available for sale				Held to maturity
(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	52,681	$	53,030	$	—	$	—
Due after one year through five years	70,311		72,722		7,365		7,569
Due after five years through ten years	9,009		9,607		7,430		7,694
Due after ten years	3,531		3,292		—		—
Agency mortgage-backed securities	333,549		339,863		27,719		28,574
	$	469,081	$	478,514	$	42,514	$	43,837

The following table represents a summary of investment securities that had an unrealized loss:

	June 30, 2016
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	—	$	—	$	3,141	$	310	$	3,141	$	310
Agency mortgage-backed securities	904		5		19,910		268		20,814		273
	$	904	$	5	$	23,051	$	578	$	23,955	$	583
	December 31, 2015
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	2,199	$	12	$	9,395	$	380	$	11,594	$	392
Agency mortgage-backed securities	189,229		2,050		21,020		737		210,249		2,787
	$	191,428	$	2,062	$	30,415	$	1,117	$	221,843	$	3,179

The unrealized losses at both June 30, 2016, and December 31, 2015, were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include among other considerations (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security, and (5) the intent to sell the security or whether it is more likely than not the Company would be required to sell the security before its anticipated recovery in market value. At June 30, 2016, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.

 The gross gains and gross losses realized from sales of available for sale investment securities were as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2016		2015		2016		2015
Gross gains realized	$	—	$	—	$	—	$	63
Gross losses realized	—		—		—		(40		)
Proceeds from sales	—		—		—		41,069

9

NOTE 4 - PORTFOLIO LOANS

Below is a summary of Portfolio loans by category at June 30, 2016 and December 31, 2015:

(in thousands)	June 30, 2016			December 31, 2015
Commercial and industrial	$	1,540,457		$	1,484,327
Real estate:
Commercial - investor owned	466,713			428,064
Commercial - owner occupied	332,639			342,959
Construction and land development	171,778			161,061
Residential	211,155			196,498
Total real estate loans	1,182,285			1,128,582
Consumer and other	161,417			137,537
Portfolio loans	2,884,159			2,750,446
Unearned loan fees, net	(250		)	291
Portfolio loans, including unearned loan fees	$	2,883,909		$	2,750,737

10

A summary of the year-to-date activity in the allowance for loan losses and the recorded investment in Portfolio loans by class and category based on impairment method through June 30, 2016, and at December 31, 2015, is as follows:

(in thousands)	Commercial and industrial			CRE - investor owned			CRE - owner occupied			Construction and land development			Residential real estate			Consumer and other			Total
Allowance for loan losses:
Balance at December 31, 2015	$	22,056		$	3,484		$	2,969		$	1,704		$	1,796		$	1,432		$	33,441
Provision (provision reversal) charged to expense	1,120			(116		)	80			(65		)	11			(197		)	833
Losses charged off	(68		)	—			—			—			—			(5		)	(73		)
Recoveries	53			7			68			6			34			4			172
Balance at March 31, 2016	$	23,161		$	3,375		$	3,117		$	1,645		$	1,841		$	1,234		$	34,373
Provision (provision reversal) charged to expense	302			(27		)	(541		)	(434		)	(80		)	1,496			716
Losses charged off	(157		)	—			—			—			—			(6		)	(163		)
Recoveries	502			8			15			8			36			3			572
Balance at June 30, 2016	$	23,808		$	3,356		$	2,591		$	1,219		$	1,797		$	2,727		$	35,498

(in thousands)	Commercial and industrial		CRE - investor owned		CRE - owner occupied		Construction and land development		Residential real estate		Consumer and other		Total
Balance June 30, 2016
Allowance for loan losses - Ending balance:
Individually evaluated for impairment	$	2,716	$	—	$	—	$	31	$	3	$	1,927	$	4,677
Collectively evaluated for impairment	21,092		3,356		2,591		1,188		1,794		800		30,821
Total	$	23,808	$	3,356	$	2,591	$	1,219	$	1,797	$	2,727	$	35,498
Loans - Ending balance:
Individually evaluated for impairment	$	5,019	$	248	$	1,704	$	2,576	$	670	$	4,571	$	14,788
Collectively evaluated for impairment	1,535,438		466,465		330,935		169,202		210,485		156,596		2,869,121
Total	$	1,540,457	$	466,713	$	332,639	$	171,778	$	211,155	$	161,167	$	2,883,909
Balance December 31, 2015
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	1,953	$	—	$	6	$	369	$	7	$	—	$	2,335
Collectively evaluated for impairment	20,103		3,484		2,963		1,335		1,789		1,432		31,106
Total	$	22,056	$	3,484	$	2,969	$	1,704	$	1,796	$	1,432	$	33,441
Loans - Ending balance:
Individually evaluated for impairment	$	4,514	$	921	$	1,962	$	2,800	$	681	$	—	$	10,878
Collectively evaluated for impairment	1,479,813		427,143		340,997		158,261		195,817		137,828		2,739,859
Total	$	1,484,327	$	428,064	$	342,959	$	161,061	$	196,498	$	137,828	$	2,750,737

A summary of Portfolio loans individually evaluated for impairment by category at June 30, 2016 and December 31, 2015, is as follows:

11

	June 30, 2016
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial and industrial	$	4,840	$	134	$	4,700	$	4,834	$	2,716	$	4,873
Real estate loans:
Commercial - investor owned	—		249		—		249		—		250
Commercial - owner occupied	—		—		—		—		—		—
Construction and land development	3,481		2,970		367		3,337		31		2,646
Residential	670		642		65		707		3		679
Consumer and other	4,571		—		4,580		4,580		1,927		4,628
Total	$	13,562	$	3,995	$	9,712	$	13,707	$	4,677	$	13,076

	December 31, 2015
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial and industrial	$	5,554	$	509	$	4,204	$	4,713	$	1,953	$	6,970
Real estate loans:
Commercial - investor owned	927		927		—		927		—		970
Commercial - owner occupied	329		85		113		198		6		301
Construction and land development	4,349		2,914		530		3,444		369		3,001
Residential	705		637		68		705		7		682
Consumer and other	—		—		—		—		—		—
Total	$	11,864	$	5,072	$	4,915	$	9,987	$	2,335	$	11,924

The following table presents details for past due and impaired loans:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2016		2015		2016		2015
Total interest income that would have been recognized under original terms	$	329	$	229	$	477	$	544
Total cash received and recognized as interest income on non-accrual loans	44		98		50		125
Total interest income recognized on impaired loans	25		14		31		27

There were no loans over 90 days past due and still accruing interest at June 30, 2016 or December 31, 2015.

The recorded investment in impaired Portfolio loans by category at June 30, 2016 and December 31, 2015, is as follows:

12

	June 30, 2016
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial and industrial	$	2,524	$	2,310	$	—	$	4,834
Real estate:
Commercial - investor owned	249		—		—		249
Commercial - owner occupied	—		—		—		—
Construction and land development	3,317		20		—		3,337
Residential	707		—		—		707
Consumer and other	4,580		—		—		4,580
Total	$	11,377	$	2,330	$	—	$	13,707

	December 31, 2015
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial and industrial	$	4,406	$	307	$	—	$	4,713
Real estate:
Commercial - investor owned	927		—		—		927
Commercial - owner occupied	198		—		—		198
Construction and land development	3,444		—		—		3,444
Residential	705		—		—		705
Consumer and other	—		—		—		—
Total	$	9,680	$	307	$	—	$	9,987

The recorded investment by category for the Portfolio loans that have been restructured during the three and six months ended June 30, 2016 and 2015, is as follows:

	Three months ended June 30, 2016					Three months ended June 30, 2015
(in thousands, except for number of loans)	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Commercial and industrial	1	$	2,300	$	2,300	—	$	—	$	—
Real estate:
Commercial - investor owned	—	—		—		—	—		—
Commercial - owner occupied	—	—		—		—	—		—
Construction and land development	1	20		20		—	—		—
Residential	—	—		—		—	—		—
Consumer and other	—	—		—		—	—		—
Total	2	$	2,320	$	2,320	—	$	—	$	—

13

	Six months ended June 30, 2016					Six months ended June 30, 2015
(in thousands, except for number of loans)	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Commercial and industrial	2	$	2,341	$	2,341	—	$	—	$	—
Real estate:
Commercial - investor owned	1	248		248		—	—		—
Commercial - owner occupied	—	—		—		—	—		—
Construction and land development	1	20		20		—	—		—
Residential	—	—		—		—	—		—
Consumer and other	—	—		—		—	—		—
Total	4	$	2,609	$	2,609	—	$	—	$	—

The restructured loans resulted from deferral of principal and extending the term to maturity. As of June 30, 2016, the Company had $1.2 million specific reserves allocated to loans that have been restructured. There were no Portfolio loans restructured that subsequently defaulted during the six months ended June 30, 2016 or 2015.

The aging of the recorded investment in past due Portfolio loans by portfolio class and category at June 30, 2016 and December 31, 2015 is shown below.

	June 30, 2016
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	83	$	2,407	$	2,490	$	1,537,967	$	1,540,457
Real estate:
Commercial - investor owned	—		—		—		466,713		466,713
Commercial - owner occupied	—		—		—		332,639		332,639
Construction and land development	367		2,189		2,556		169,222		171,778
Residential	10		605		615		210,540		211,155
Consumer and other	4		—		4		161,163		161,167
Total	$	464	$	5,201	$	5,665	$	2,878,244	$	2,883,909

	December 31, 2015
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	505	$	888	$	1,393	$	1,482,934	$	1,484,327
Real estate:
Commercial - investor owned	464		—		464		427,600		428,064
Commercial - owner occupied	94		184		278		342,681		342,959
Construction and land development	384		2,273		2,657		158,404		161,061
Residential	70		681		751		195,747		196,498
Consumer and other	20		—		20		137,808		137,828
Total	$	1,537	$	4,026	$	5,563	$	2,745,174	$	2,750,737

14

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

• Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry.

• Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow.

• Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow.

• Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating.

• Grade 7 – Watch credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support.

• Grade 8 – Substandard credits will include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted.

• Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual.

The recorded investment by risk category of the Portfolio loans by portfolio class and category at June 30, 2016, which is based upon the most recent analysis performed, and December 31, 2015 is as follows:

	June 30, 2016
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial and industrial	$	1,396,684	$	82,775	$	60,998	$	—	$	1,540,457
Real estate:
Commercial - investor owned	448,321		13,223		5,169		—		466,713
Commercial - owner occupied	302,411		27,144		3,084		—		332,639
Construction and land development	161,528		6,258		3,992		—		171,778
Residential	202,880		4,840		3,435		—		211,155
Consumer and other	154,500		714		5,953		—		161,167
Total	$	2,666,324	$	134,954	$	82,631	$	—	$	2,883,909

15

	December 31, 2015
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial and industrial	$	1,356,864	$	90,370	$	37,093	$	—	$	1,484,327
Real estate:
Commercial - investor owned	403,820		18,868		5,376		—		428,064
Commercial - owner occupied	314,791		24,727		3,441		—		342,959
Construction and land development	146,601		10,114		4,346		—		161,061
Residential	188,269		5,138		3,091		—		196,498
Consumer and other	131,060		721		6,047		—		137,828
Total	$	2,541,405	$	149,938	$	59,394	$	—	$	2,750,737

16

NOTE 5 - PURCHASED CREDIT IMPAIRED ("PCI") LOANS

Below is a summary of PCI loans by category at June 30, 2016 and December 31, 2015:

	June 30, 2016			December 31, 2015
(in thousands)	Weighted- Average Risk Rating1	Recorded Investment PCI Loans		Weighted- Average Risk Rating1	Recorded Investment PCI Loans
Commercial and industrial	6.45	$	3,498	6.70	$	3,863
Real estate:
Commercial - investor owned	7.14	19,328		6.98	25,272
Commercial - owner occupied	6.35	13,068		6.30	19,414
Construction and land development	5.70	5,523		6.28	6,838
Residential	5.44	15,047		5.44	19,287
Total real estate loans		52,966			70,811
Consumer and other	1.60	65		1.89	84
Purchased credit impaired loans		$	56,529		$	74,758
1Risk ratings are based on the borrower's contractual obligation, which is not reflective of the purchase discount.

The aging of the recorded investment in past due PCI loans by portfolio class and category at June 30, 2016 and December 31, 2015 is shown below:

	June 30, 2016
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	22	$	—	$	22	$	3,476	$	3,498
Real estate:
Commercial - investor owned	—		—		—		19,328		19,328
Commercial - owner occupied	—		—		—		13,068		13,068
Construction and land development	—		—		—		5,523		5,523
Residential	372		144		516		14,531		15,047
Consumer and other	—		—		—		65		65
Total	$	394	$	144	$	538	$	55,991	$	56,529

	December 31, 2015
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	3,863	$	3,863
Real estate:
Commercial - investor owned	2,342		3,661		6,003		19,269		25,272
Commercial - owner occupied	731		—		731		18,683		19,414
Construction and land development	—		—		—		6,838		6,838
Residential	1,594		130		1,724		17,563		19,287
Consumer and other	4		—		4		80		84
Total	$	4,671	$	3,791	$	8,462	$	66,296	$	74,758

17

The following table is a rollforward of PCI loans, net of the allowance for loan losses, for the six months ended June 30, 2016 and 2015.

(in thousands)	Contractual Cashflows			Non-accretable Difference			Accretable Yield			Carrying Amount
Balance January 1, 2016	$	116,689		$	26,765		$	25,341		$	64,583
Principal reductions and interest payments	(11,768		)	—			—			(11,768		)
Accretion of loan discount	—			—			(3,431		)	3,431
Changes in contractual and expected cash flows due to remeasurement	6,144			1,522			(788		)	5,410
Reductions due to disposals	(21,663		)	(4,912		)	(3,073		)	(13,678		)
Balance June 30, 2016	$	89,402		$	23,375		$	18,049		$	47,978
Balance January 1, 2015	$	178,145		$	65,719		$	28,733		$	83,693
Principal reductions and interest payments	(13,214		)	—			—			(13,214		)
Accretion of loan discount	—			—			(5,989		)	5,989
Changes in contractual and expected cash flows due to remeasurement	(12,100		)	(26,187		)	5,304			8,783
Reductions due to disposals	(13,831		)	(2,794		)	(1,836		)	(9,201		)
Balance June 30, 2015	$	139,000		$	36,738		$	26,212		$	76,050

The accretable yield is recognized in interest income over the estimated life of the acquired loans using the effective yield method. Outstanding customer balances on PCI loans were $75.1 million and $98.6 million as of June 30, 2016, and December 31, 2015, respectively.

18

NOTE 6 - COMMITMENTS AND CONTINGENCIES

The Company issues financial instruments with off balance sheet risk in the normal course of the business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments.

The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At June 30, 2016, there were $0.1 million unadvanced commitments on impaired loans.

The contractual amounts of off-balance-sheet financial instruments as of June 30, 2016, and December 31, 2015, are as follows:

(in thousands)	June 30, 2016		December 31, 2015
Commitments to extend credit	$	1,067,353	$	1,140,028
Standby letters of credit	82,606		54,648

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments usually have fixed expiration dates or other termination clauses, may have significant usage restrictions, and may require payment of a fee. Of the total commitments to extend credit at June 30, 2016, and December 31, 2015, approximately $115 million and $94 million, respectively, represent fixed rate loan commitments. Since certain of the commitments may expire without being drawn upon or may be revoked, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, premises and equipment, and real estate. Other liabilities include $0.3 million for estimated losses attributable to the unadvanced commitments at June 30, 2016 and December 31, 2015.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are issued to support contractual obligations of the Company’s customers. The credit risk involved in issuing letters of credit is essentially the same as the risk involved in extending loans to customers. The approximate remaining term of standby letters of credit range from 1 month to 2 years 11 months at June 30, 2016.

Contingencies

The Company and its subsidiaries are, from time to time, parties to various legal proceedings arising out of their businesses. Management believes there are no such proceedings pending or threatened against the Company or its subsidiaries which, if determined adversely, would have a material adverse effect on the business, consolidated financial condition, results of operations or cash flows of the Company or any of its subsidiaries.

19

NOTE 7 - DERIVATIVE FINANCIAL INSTRUMENTS

The Company is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients and as part of its risk management activities. These instruments include interest rate swaps and option contracts and foreign exchange forward contracts. The Company does not enter into derivative financial instruments for trading purposes.

Risk Management Instruments. The Company enters into interest rate caps in order to economically hedge changes in fair value of State tax credits held for sale. See Note 8 – Fair Value Measurements for further discussion on the fair value of state tax credits. The notional amount of the derivative instruments used to manage risk was $3.5 million at June 30, 2016 and December 31, 2015, and the fair value was zero in both periods.

Client-Related Derivative Instruments. The Company enters into interest rate swaps to allow customers to hedge changes in fair value of certain loans while maintaining a variable rate loan on its own books. The Company also enters into foreign exchange forward contracts with clients, and enters into offsetting foreign exchange forward contracts with established financial institution counterparties. The table below summarizes the notional amounts and fair values of the client-related derivative instruments:

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Non-designated hedging instruments
Interest rate swap contracts	$	161,598	$	153,630	$	2,264	$	1,155	$	2,264	$	1,155

Changes in the fair value of client-related derivative instruments are recognized currently in operations. For the three and six months ended June 30, 2016 and 2015, the gains and losses offset each other due to the Company's hedging of the client swaps with other bank counterparties.

NOTE 8 - FAIR VALUE MEASUREMENTS

Below is a description of certain assets and liabilities measured at fair value.

The following table summarizes financial instruments measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

20

	June 30, 2016
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	99,686	$	—	$	99,686
Obligations of states and political subdivisions	—		35,872		3,093		38,965
Residential mortgage-backed securities	—		339,863		—		339,863
Total securities available for sale	$	—	$	475,421	$	3,093	$	478,514
State tax credits held for sale	—		—		4,774		4,774
Derivative financial instruments	—		2,264		—		2,264
Total assets	$	—	$	477,685	$	7,867	$	485,552
Liabilities
Derivative financial instruments	$	—	$	2,264	$	—	$	2,264
Total liabilities	$	—	$	2,264	$	—	$	2,264

	December 31, 2015
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	99,008	$	—	$	99,008
Obligations of states and political subdivisions	—		38,624		3,077		41,701
Residential mortgage-backed securities	—		311,061		—		311,061
Total securities available for sale	$	—	$	448,693	$	3,077	$	451,770
State tax credits held for sale	—		—		5,941		5,941
Derivative financial instruments	—		1,155		—		1,155
Total assets	$	—	$	449,848	$	9,018	$	458,866
Liabilities
Derivative financial instruments	$	—	$	1,155	$	—	$	1,155
Total liabilities	$	—	$	1,155	$	—	$	1,155

• Securities available for sale. Securities classified as available for sale are reported at fair value utilizing Level 2 and Level 3 inputs. Fair values for Level 2 securities are based upon dealer quotes, market spreads, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions at the security level. At June 30, 2016, Level 3 securities available for sale consist primarily of three Auction Rate Securities that are valued based on the securities' estimated cash flows, yields of comparable securities, and live trading levels.

• State tax credits held for sale. At June 30, 2016, of the $44.9 million of state tax credits held for sale on the condensed consolidated balance sheet, approximately $4.8 million were carried at fair value. The remaining $40.1 million of state tax credits were accounted for at cost.

The Company is not aware of an active market that exists for the 10-year streams of state tax credit financial instruments. However, the Company’s principal market for these tax credits consists of Missouri state residents

21

who buy these credits and local and regional accounting firms who broker them. As such, the Company employed a discounted cash flow analysis (income approach) to determine the fair value.

The fair value measurement is calculated using an internal valuation model with market data including discounted cash flows based upon the terms and conditions of the tax credits. If the underlying project remains in compliance with the various federal and state rules governing the tax credit program, each project will generate about 10 years of tax credits. The inputs to the discounted cash flow calculation include: the amount of tax credits generated each year, the anticipated sale price of the tax credit, the timing of the sale and a discount rate. The discount rate is estimated using the LIBOR swap curve at a point equal to the remaining life in years of credits plus a 205 basis point spread. With the exception of the discount rate, the other inputs to the fair value calculation are observable and readily available. The discount rate is considered a Level 3 input because it is an “unobservable input” and is based on the Company’s assumptions. An increase in the discount rate utilized would generally result in a lower estimated fair value of the tax credits. Alternatively, a decrease in the discount rate utilized would generally result in a higher estimated fair value of the tax credits. Given the significance of this input to the fair value calculation, the state tax credit assets are reported as Level 3 assets.

• Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The Company obtains counterparty quotations to value its interest rate swaps and caps. In addition, the Company validates the counterparty quotations with third party valuation sources. Derivatives with negative fair values are included in Other liabilities in the consolidated balance sheets. Derivatives with positive fair value are included in Other assets in the consolidated balance sheets.

Level 3 financial instruments

The following table presents the changes in Level 3 financial instruments measured at fair value on a recurring basis as of June 30, 2016 and 2015.

• Purchases, sales, issuances and settlements. There were no Level 3 purchases during the quarter ended June 30, 2016 or 2015.

• Transfers in and/or out of Level 3. There were no Level 3 transfers during the quarter ended June 30, 2016 and 2015.

	Securities available for sale, at fair value
	Three months ended June 30,					Six months ended June 30,
(in thousands)	2016		2015			2016		2015
Beginning balance	$	3,085	$	3,071		$	3,077	$	3,059
Total gains:
Included in other comprehensive income	8		(1		)	16		11
Purchases, sales, issuances and settlements:
Purchases	—		—			—		—
Ending balance	$	3,093	$	3,070		$	3,093	$	3,070
Change in unrealized gains (losses) relating to assets still held at the reporting date	$	8	$	(1	)	$	16	$	11

22

	State tax credits held for sale
	Three months ended June 30,					Six months ended June 30,
(in thousands)	2016		2015			2016			2015
Beginning balance	$	4,733	$	10,286		$	5,941		$	11,689
Total gains:
Included in earnings	41		66			117			194
Purchases, sales, issuances and settlements:
Sales	—		(387		)	(1,284		)	(1,918		)
Ending balance	$	4,774	$	9,965		$	4,774		$	9,965
Change in unrealized gains (losses) relating to assets still held at the reporting date	$	41	$	(36	)	$	(264	)	$	(310	)

From time to time, the Company measures certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The following table presents financial instruments and non-financial assets measured at fair value on a non-recurring basis as of June 30, 2016.

	(1)		(1)		(1)		(1)
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total gains (losses) for the three months ended June 30, 2016			Total gains (losses) for the six months ended June 30, 2016
Impaired loans	$	—	$	—	$	—	$	—	$	(163	)	$	(236	)
Other real estate	—		—		—		—		—			(1		)
Total	$	—	$	—	$	—	$	—	$	(163	)	$	(237	)

(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date.

Impaired loans are reported at the fair value of the underlying collateral for collateral dependent loans. Fair values for impaired loans are obtained from current appraisals by qualified licensed appraisers or independent valuation specialists. Other real estate owned is adjusted to fair value upon foreclosure of the underlying loan. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value less costs to sell. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Certain state tax credits are reported at cost.

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at June 30, 2016 and December 31, 2015.

23

	June 30, 2016				December 31, 2015
(in thousands)	Carrying Amount		Estimated fair value		Carrying Amount		Estimated fair value
Balance sheet assets
Cash and due from banks	$	50,370	$	50,370	$	47,935	$	47,935
Federal funds sold	317		317		91		91
Interest-bearing deposits	60,609		60,609		47,131		47,131
Securities available for sale	478,514		478,514		451,770		451,770
Securities held to maturity	42,514		43,837		43,714		43,441
Other investments, at cost	17,403		17,403		17,455		17,455
Loans held for sale	9,669		9,669		6,598		6,598
Derivative financial instruments	2,264		2,264		1,155		1,155
Portfolio loans, net	2,896,389		2,902,083		2,781,879		2,782,704
State tax credits, held for sale	44,918		49,961		45,850		49,588
Accrued interest receivable	8,123		8,123		8,399		8,399
Balance sheet liabilities
Deposits	3,028,236		3,030,334		2,784,591		2,784,654
Subordinated debentures	56,807		35,771		56,807		35,432
Federal Home Loan Bank advances	78,000		78,000		110,000		109,994
Other borrowings	200,362		200,332		270,326		270,286
Derivative financial instruments	2,264		2,264		1,155		1,155
Accrued interest payable	625		625		629		629

For information regarding the methods and assumptions used to estimate the fair value of each class of financial instruments for which it is practical to estimate such value, refer to Note 19 – Fair Value Measurements in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already presented on the condensed consolidated balance sheets at fair value at June 30, 2016, and December 31, 2015.

24

	Estimated Fair Value Measurement at Reporting Date Using						Balance at June 30, 2016
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	43,837	$	—	$	43,837
Portfolio loans, net	—		—		2,902,083		2,902,083
State tax credits, held for sale	—		—		45,187		45,187
Financial Liabilities:
Deposits	2,506,206		—		524,128		3,030,334
Subordinated debentures	—		35,771		—		35,771
Federal Home Loan Bank advances	—		78,000		—		78,000
Other borrowings	—		200,332		—		200,332
	Estimated Fair Value Measurement at Reporting Date Using						Balance at December 31, 2015
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	43,441	$	—	$	43,441
Portfolio loans, net	—		—		2,782,704		2,782,704
State tax credits, held for sale	—		—		43,647		43,647
Financial Liabilities:
Deposits	2,428,403		—		356,251		2,784,654
Subordinated debentures	—		35,432		—		35,432
Federal Home Loan Bank advances	—		109,994		—		109,994
Other borrowings	—		270,286		—		270,286

NOTE 9 - NEW AUTHORITATIVE ACCOUNTING GUIDANCE

FASB ASU 2014-09, "Revenue from Contracts with Customers" In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance was originally effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 for public companies. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of this guidance to annual reporting periods beginning after December 15, 2017 for public companies, and permits early adoption on a limited basis. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements, nor decided upon the method of adoption. Entities have the option of using either a full retrospective or modified approach to adopt ASU 2014-09.

FASB ASU 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 requires equity investments to be measured at fair value through earnings, and eliminates the available-for-sale classification for equity securities with readily determinable fair values. For financial liabilities where the fair value option has been elected, changes in fair value due to instrument-specific credit risk must be recognized in other

25

comprehensive income. When measuring the fair value of financial instruments at amortized cost, the exit price must be used for disclosure purposes. The ASU also requires that financial assets and liabilities be presented separately in the notes to the financial statements. This ASU becomes effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

FASB ASU 2016-02 "Leases (Topic 842)" In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which requires organizations that lease assets ("lessees") to recognize the assets and liabilities for the rights and obligations created by leases with terms of more than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee remains dependent on its classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease has not been significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The guidance becomes effective for periods beginning after December 15, 2018. Early adoption will be permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its consolidated balance sheets.

FASB ASU 2016-09 "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718)" which impacts accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 requires all excess tax benefits and tax deficiencies to be recognized in the income statement as income tax expense (or benefit.) The tax effects of exercised or vested awards must be treated as discrete items in the reporting period in which they occur, regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits will be classified with other income tax cash flows as an operating activity, and cash paid by an employer when withholding shares for tax liabilities should be classified as a financing activity. The guidance becomes effective for annual periods beginning after December 15, 2017, and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

FASB ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" In June 2016, the FASB issued ASU 2016-13, "Financial Instruments (Topic 326)" which changes the methodology for evaluating impairment of most financial instruments. The ASU replaces the currently used incurred loss model with a forward-looking expected loss model, which will generally result in a more timely recognition of losses. The guidance becomes effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

26

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Some of the information in this report contains “forward-looking statements” within the meaning of and intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified with use of terms such as “may,” “might,” “will, “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “could,” “continue” and the negative of these terms and similar words, although some forward-looking statements are expressed differently. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. You should be aware that our actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including, but not limited to: credit risk; changes in the appraised valuation of real estate securing impaired loans; outcomes of litigation and other contingencies; exposure to general and local economic conditions; risks associated with rapid increases or decreases in prevailing interest rates; consolidation within the banking industry; competition from banks and other financial institutions; our ability to attract and retain relationship officers and other key personnel; burdens imposed by federal and state regulation; changes in regulatory requirements; changes in accounting regulation or standards applicable to banks; and other risks discussed under the caption “Risk Factors” of our most recently filed Form 10-K and within this Form 10-Q, all of which could cause the Company’s actual results to differ from those set forth in the forward-looking statements.

Readers are cautioned not to place undue reliance on our forward-looking statements, which reflect management’s analysis and expectations only as of the date of such statements. Forward-looking statements speak only as of the date they are made, and the Company does not intend, and undertakes no obligation, to publicly revise or update forward-looking statements after the date of this report, whether as a result of new information, future events or otherwise, except as required by federal securities law. You should understand that it is not possible to predict or identify all risk factors. Readers should carefully review all disclosures we file from time to time with the Securities and Exchange Commission which are available on our website at www.enterprisebank.com under "Investor Relations."

Introduction

The following discussion describes the significant changes to the financial condition of the Company that have occurred during the first six months of 2016 compared to the financial condition as of December 31, 2015. In addition, this discussion summarizes the significant factors affecting the results of operations, liquidity and cash flows of the Company for the three and six months ended June 30, 2016, compared to the same periods in 2015. This discussion should be read in conjunction with the accompanying condensed consolidated financial statements included in this report and our Annual Report on Form 10-K for the year ended December 31, 2015.

27

Executive Summary

Below are highlights of our financial performance for the quarter ended June 30, 2016, as compared to the linked quarter ended March 31, 2016, and prior year quarter ended June 30, 2015.

(in thousands, except per share data)	For the Three Months ended and At									For the Six Months ended
	June 30, 2016			March 31, 2016			June 30, 2015			June 30, 2016			June 30, 2015
EARNINGS
Total interest income	$	37,033		$	35,460		$	32,352		$	72,493		$	64,503
Total interest expense	3,250			3,032			3,072			6,282			6,178
Net interest income	33,783			32,428			29,280			66,211			58,325
Provision for portfolio loans	716			833			2,150			1,549			3,730
Provision reversal for PCI loans	(336		)	(73		)	—			(409		)	(3,270		)
Net interest income after provision for loan losses	33,403			31,668			27,130			65,071			57,865
Total noninterest income	7,049			6,005			5,806			13,054			9,389
Total noninterest expense	21,353			20,762			19,458			42,115			39,408
Income before income tax expense	19,099			16,911			13,478			36,010			27,846
Income tax expense	6,747			5,886			4,762			12,633			9,784
Net income	$	12,352		$	11,025		$	8,716		$	23,377		$	18,062
Basic earnings per share	$	0.62		$	0.55		$	0.44		$	1.17		$	0.91
Diluted earnings per share	0.61			0.54			0.43			1.16			0.90
Return on average assets	1.33		%	1.22		%	1.06		%	1.27		%	1.11		%
Return on average common equity	13.57		%	12.46		%	10.56		%	13.02		%	11.16		%
Return on average tangible common equity	14.91		%	13.74		%	11.77		%	14.34		%	12.47		%
Net interest margin (fully tax equivalent)	3.93		%	3.87		%	3.85		%	3.90		%	3.88		%
Efficiency ratio	52.29		%	54.02		%	55.46		%	53.13		%	58.20		%
ASSET QUALITY(1)
Net charge-offs (recoveries)	$	(409	)	$	(99	)	$	672		$	(508	)	$	2,150
Nonperforming loans	12,813			9,513			17,498
Classified assets	87,532			73,194			61,722
Nonperforming loans to portfolio loans	0.44		%	0.34		%	0.69		%
Nonperforming assets to total assets (2)	0.47		%	0.52		%	0.58		%
Allowance for loan losses to portfolio loans	1.23		%	1.21		%	1.25		%
Net charge-offs (recoveries) to average loans (annualized)	(0.06		)%	(0.01		)%	0.11		%	(0.04		)%	0.19		%
(1) Excludes PCI loans and related assets, except for their inclusion in total assets.
(2) Other real estate from PCI loans included in Nonperforming assets beginning with the period ended December 31, 2015 due to termination of FDIC loss share agreements.

Below are highlights of the Company's Core performance measures, which we believe are important measures of financial performance, but are non-GAAP measures. Core performance measures include contractual interest on PCI loans, but exclude incremental accretion on these loans, and exclude the Change in the FDIC receivable, gain or loss on the sale of other real estate from PCI loans, and certain other income and expense items the Company believes are not indicative of or useful to measure the Company's operating performance on an ongoing basis. A reconciliation of

28

Core performance measures has been included in this MD&A section under the caption "Use of Non-GAAP Financial Measures".

	For the Three Months ended									For the Six Months ended
(in thousands)	June 30, 2016			March 31, 2016			June 30, 2015			June 30, 2016			June 30, 2015
CORE PERFORMANCE MEASURES(1)
Net interest income	$	30,212		$	29,594		$	26,277		$	59,806		$	51,864
Provision for portfolio loans	716			833			2,150			1,549			3,730
Noninterest income	6,105			6,005			6,741			12,110			12,580
Noninterest expense	20,446			20,435			19,030			40,881			38,098
Income before income tax expense	15,155			14,331			11,838			29,486			22,616
Income tax expense	5,237			4,897			4,134			10,134			7,781
Net income	$	9,918		$	9,434		$	7,704		$	19,352		$	14,835
Earnings per share	$	0.49		$	0.47		$	0.38		$	0.96		$	0.74
Return on average assets	1.07		%	1.04		%	0.93		%	1.06		%	0.91		%
Return on average common equity	10.89		%	10.66		%	9.34		%	10.78		%	9.17		%
Return on average tangible common equity	11.98		%	11.76		%	10.41		%	11.87		%	10.24		%
Net interest margin (fully tax equivalent)	3.52		%	3.54		%	3.46		%	3.53		%	3.46		%
Efficiency ratio	56.30		%	57.40		%	57.64		%	56.85		%	59.12		%
(1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption "Use of Non-GAAP Financial Measures."

During the six months ended June 30, 2016, the Company noted the following trends:

• The Company reported net income of $23.4 million, or $1.16 per share, for the six months ended June 30, 2016, compared to $18.1 million, or $0.90 per share, for the same period in 2015. The increase in net income was primarily due to an increase in net interest income and an increase in noninterest income.

• On a core basis¹, net income was $19.4 million, or $0.96 per share, for the six months ended June 30, 2016, compared to $14.8 million, or $0.74 per share, in the prior year period. The increase from the prior year was primarily due to increases in earning asset balances, driving growth in core net interest income. Additionally, a decrease in provision for losses on portfolio loans contributed to the increase, and was offset by a modest increase in noninterest expense.

• Net interest income for the first six months of 2016increased$7.9 million or 14%, from the prior year period due to strong portfolio loan growth.

• Net interest margin for the first six months of 2016increasedtwo basis points to 3.90% when compared to the prior year period. Core net interest margin¹, for the first six months of 2016, defined as Net interest margin (fully tax equivalent), including contractual interest on PCI loans, but excluding the incremental accretion on these loans, increased seven basis points from the prior year period primarily due to managed reductions in funding costs combined with an improved earning asset mix, and an increase in the yield on portfolio loans.

• Noninterest income for the first six months of 2016 increased $3.7 million, or 39%, compared to the prior year period largely due to a decrease in the Change in FDIC receivable from termination of the Company's loss share agreements in the fourth quarter of 2015. Core noninterest income¹ declined $0.5 million, or 4%, from the prior year period primarily due to higher allocation fees from tax credit projects and higher fees earned from recoveries received during the first six months of 2015.

29

• Noninterest expense increased $2.7 million, or 7%, from the prior year period, and the Company's efficiency ratio improved to 53.1% from 58.2% when compared to the prior year. The increase was largely due to an increase in Employee compensation and benefits, including $0.3 million of executive severance. Core noninterest expense¹ also increased 7% when compared to the prior year. However, the Core efficiency ratio¹ also improved to 56.9% from 59.1% when compared to the prior year period due to revenue growth resulting from investments in customer facing associates driving continued revenue growth.

Other highlights:

• The Company's Board approved a sixth consecutive increase in the Company’s quarterly cash dividend to $0.11 per common share for the third quarter of 2016 from $0.10, payable on September 30, 2016 to shareholders of record as of the close of business on September 15, 2016.

• The Company repurchased 18,918 shares at $26.46 per share pursuant to its publicly announced program during the quarter ended June 30, 2016, and 160,100 shares at $26.30 per share during the quarter ended March 31, 2016. The Company's Board authorized the repurchase plan in May of 2015, which allows the Company to repurchase up to two million common shares, representing approximately 10% of the Company’s currently outstanding shares. Shares may be bought back in open market or privately negotiated transactions over an indeterminate time period based on market and business conditions.

Balance sheet highlights:

• Loans – Loans totaled $2.9 billion at June 30, 2016, including $56.5 million of PCI loans. Portfolio loans increased$133.2 million, or 5%, from December 31, 2015. Commercial and industrial loans increased$56.1 million, or 4%, Consumer and other loans increased$23.9 million, or 17%, Construction loans and Residential real estate loans increased$25.4 million, or 7%, and Commercial real estate increased$28.3 million, or 4%. See Item 1, Note 4 – Portfolio Loans for more information.

• Deposits – Total deposits at June 30, 2016 were $3.0 billion, an increase of $243.6 million, or 9%, from December 31, 2015. Deposits increased from both core deposit gathering efforts and brokered sources to supplement and fund our loan growth.

• Asset quality – Nonperforming loans were $12.8 million at June 30, 2016, compared to $9.1 million at December 31, 2015. Nonperforming loans represented 0.44% of portfolio loans at June 30, 2016 versus 0.33% at December 31, 2015. There were no portfolio loans that were over 90 days delinquent and still accruing at June 30, 2016 or December 31, 2015.

Provision for portfolio loan losses was $1.5 million for the six months ended June 30, 2016, compared to $3.7 million for the six months ended June 30, 2015. See Item 1, Note 4 – Portfolio Loans, and Provision and Allowance for Loan Losses in this section for more information.

30

RESULTS OF OPERATIONS

Net Interest Income

Average Balance Sheet

The following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax equivalent basis.

	Three months ended June 30,
	2016							2015
(in thousands)	Average Balance			Interest Income/Expense		Average Yield/ Rate		Average Balance			Interest Income/Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Taxable portfolio loans (1)	$	2,832,279		$	29,377	4.17	%	$	2,450,453		$	25,273	4.14	%
Tax-exempt portfolio loans (2)	42,253			628		5.98		38,443			627		6.54
Purchased credit impaired loans	59,110			4,419		30.07		92,168			4,212		18.33
Total loans	2,933,642			34,424		4.72		2,581,064			30,112		4.68
Taxable investments in debt and equity securities	479,844			2,464		2.07		421,912			2,154		2.05
Non-taxable investments in debt and equity securities (2)	48,276			531		4.42		41,895			459		4.39
Short-term investments	45,039			58		0.52		51,423			38		0.30
Total securities and short-term investments	573,159			3,053		2.14		515,230			2,651		2.06
Total interest-earning assets	3,506,801			37,477		4.30		3,096,294			32,763		4.24
Noninterest-earning assets:
Cash and due from banks	56,662							48,599
Other assets	214,880							208,897
Allowance for loan losses	(44,151		)					(43,212		)
Total assets	$	3,734,192						$	3,310,578
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing transaction accounts	$	582,482		$	329	0.23	%	$	506,073		$	279	0.22	%
Money market accounts	1,029,122			1,013		0.40		879,685			672		0.31
Savings	103,564			63		0.24		86,860			54		0.25
Certificates of deposit	481,140			1,183		0.99		539,387			1,594		1.19
Total interest-bearing deposits	2,196,308			2,588		0.47		2,012,005			2,599		0.52
Subordinated debentures	56,807			361		2.56		56,807			308		2.18
Other borrowed funds	350,783			301		0.35		230,492			165		0.29
Total interest-bearing liabilities	2,603,898			3,250		0.50		2,299,304			3,072		0.54
Noninterest bearing liabilities:
Demand deposits	735,580							655,635
Other liabilities	28,582							24,640
Total liabilities	3,368,060							2,979,579
Shareholders' equity	366,132							330,999
Total liabilities & shareholders' equity	$	3,734,192						$	3,310,578
Net interest income				$	34,227						$	29,691
Net interest spread						3.80	%						3.70	%
Net interest margin						3.93	%						3.85	%

(1) Average balances include non-accrual loans. Loan fees, net of amortization of deferred loan origination fees and costs, included in interest income are approximately $0.4 million and $0.5 million for the three months ended June 30, 2016 and 2015 respectively.

(2) Non-taxable income is presented on a fully tax-equivalent basis using a 38% tax rate in 2016 and 2015. The tax-equivalent adjustments were $0.4 million and $0.4 million for the three months ended June 30, 2016 and 2015.

31

	Six months ended June 30,
	2016							2015
(in thousands)	Average Balance			Interest Income/Expense		Average Yield/ Rate		Average Balance			Interest Income/Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Taxable portfolio loans (1)	$	2,786,733		$	57,687	4.16	%	$	2,420,949		$	49,498	4.12	%
Tax-exempt portfolio loans (2)	41,542			1,288		6.24		38,424			1,252		6.57
Purchased credit impaired loans	64,071			8,310		26.08		94,670			9,209		19.62
Total loans	2,892,346			67,285		4.68		2,554,043			59,959		4.73
Taxable investments in debt and equity securities	472,567			4,923		2.09		420,371			4,353		2.09
Non-taxable investments in debt and equity securities (2)	48,836			1,069		4.40		42,429			939		4.46
Short-term investments	46,547			119		0.51		55,345			85		0.31
Total securities and short-term investments	567,950			6,111		2.16		518,145			5,377		2.09
Total interest-earning assets	3,460,296			73,396		4.27		3,072,188			65,336		4.29
Noninterest-earning assets:
Cash and due from banks	55,829							48,417
Other assets	215,623							213,596
Allowance for loan losses	(43,998		)					(44,611		)
Total assets	$	3,687,750						$	3,289,590
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing transaction accounts	$	567,083		$	635	0.23	%	$	495,457		$	556	0.23	%
Money market accounts	1,046,869			2,019		0.39		861,565			1,314		0.31
Savings	99,815			123		0.25		84,149			104		0.25
Certificates of deposit	432,616			2,202		1.02		532,974			3,185		1.21
Total interest-bearing deposits	2,146,383			4,979		0.47		1,974,145			5,159		0.53
Subordinated debentures	56,807			709		2.51		56,807			610		2.17
Other borrowed funds	366,616			594		0.33		252,137			409		0.33
Total interest-bearing liabilities	2,569,806			6,282		0.49		2,283,089			6,178		0.55
Noninterest bearing liabilities:
Demand deposits	725,165							655,367
Other liabilities	31,723							24,723
Total liabilities	3,326,694							2,963,179
Shareholders' equity	361,056							326,411
Total liabilities & shareholders' equity	$	3,687,750						$	3,289,590
Net interest income				$	67,114						$	59,158
Net interest spread						3.78	%						3.74	%
Net interest margin						3.90	%						3.88	%

(1) Average balances include non-accrual loans. Loan fees, net of amortization of deferred loan origination fees and costs, included in interest income are approximately $0.8 million and $0.9 million for the three months ended June 30, 2016 and 2015 respectively.

(2) Non-taxable income is presented on a fully tax-equivalent basis using a 38% tax rate in 2016 and 2015. The tax-equivalent adjustments were $0.9 million and $0.8 million for the six months ended June 30, 2016 and 2015.

Rate/Volume

The following table sets forth, on a tax-equivalent basis for the periods indicated, a summary of the changes in interest income and interest expense resulting from changes in yield/rates and volume.

32

	2016 compared to 2015
	Three months ended June 30,									Six months ended June 30,
	Increase (decrease) due to									Increase (decrease) due to
(in thousands)	Volume(1)			Rate(2)			Net			Volume(1)			Rate(2)			Net
Interest earned on:
Taxable portfolio loans	$	3,893		$	211		$	4,104		$	7,696		$	493		$	8,189
Tax-exempt portfolio loans (3)	58			(57		)	1			101			(65		)	36
Purchased credit impaired loans	(1,857		)	2,064			207			(3,459		)	2,560			(899		)
Taxable investments in debt and equity securities	292			18			310			556			14			570
Non-taxable investments in debt and equity securities (3)	69			3			72			143			(13		)	130
Short-term investments	(5		)	25			20			(16		)	50			34
Total interest-earning assets	$	2,450		$	2,264		$	4,714		$	5,021		$	3,039		$	8,060
Interest paid on:
Interest-bearing transaction accounts	$	42		$	8		$	50		$	82		$	(3	)	$	79
Money market accounts	125			216			341			318			387			705
Savings	10			(1		)	9			20			(1		)	19
Certificates of deposit	(163		)	(248		)	(411		)	(546		)	(437		)	(983		)
Subordinated debentures	—			53			53			—			99			99
Borrowed funds	98			38			136			187			(2		)	185
Total interest-bearing liabilities	112			66			178			61			43			104
Net interest income	$	2,338		$	2,198		$	4,536		$	4,960		$	2,996		$	7,956
(1) Change in volume multiplied by yield/rate of prior period.
(2) Change in yield/rate multiplied by volume of prior period.
(3) Nontaxable income is presented on a fully-tax equivalent basis using the combined statutory federal and state income tax rate in effect for each tax year.
NOTE: The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the absolute dollar amounts of the change in each.

Net interest income (on a tax equivalent basis) was $34.2 million for the three months ended June 30, 2016, compared to $29.7 million for the same period of 2015, an increase of $4.5 million, or 15%. Total interest income increased$4.7 million and total interest expense increased$0.2 million. The tax-equivalent net interest margin was 3.93% for the second quarter of 2016, compared to 3.87% for the first quarter of 2016, and 3.85% in the second quarter of 2015, and combined with portfolio loan growth, supported the $4.7 million increase in net interest income. The yield on taxable portfolio loans increased three basis points from the prior year period to 4.17% for the three months ended June 30, 2016. The increase was due to an increase in yields on variable rate loans, aided by the Federal Reserve's raise in the targeted Fed Funds rate of 25 basis points, to a range of 0.25% to 0.50%, in December 2015. The run-off of higher yielding PCI loans continues to negatively impact net interest margin leading to a $1.9 milliondecrease in interest income due to volume for the three months ended June 30, 2016.

Net interest income was $67.1 million for the six months ended June 30, 2016, compared to $59.2 million for the same period of 2015, an increase of $8.0 million, or 13%. Total interest income increased$8.1 million and total interest expense increased$0.1 million. The tax-equivalent net interest margin was 3.90% for the six months ended June 30, 2016, compared to 3.88% for the same period of 2015. The yield on taxable portfolio loans increased four basis points from the prior year period to 4.16% for the six months ended June 30, 2016.

Core net interest margin¹ was 3.53% for the six months ended June 30, 2016, compared to 3.46% for the prior year period.  Core net interest margin¹ increased seven basis points from the prior year quarter primarily due to loan growth improving the earning asset mix, lower funding costs, and the aforementioned increase in the yield on portfolio loans.

33

These factors have been partially offset by reductions in PCI loan balances and the higher contractual rates associated with these loans. The Company continues to manage its balance sheet to grow core net interest income and expects to maintain core net interest margin over the coming quarters; however, pressure on funding costs and continued reductions in PCI loan balances could negate the expected trends in core net interest margin.

Purchased Credit Impaired "PCI" Contribution

The following table illustrates the non-core contribution of PCI loans and related assets for the periods indicated.

	For the Three Months ended						For the Six Months ended
(in thousands)	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
Accelerated cash flows and other incremental accretion	$	3,571		$	3,003		$	6,405		$	6,461
Provision reversal for PCI loan losses	336			—			409			3,270
Gain (loss) on sale of other real estate	705			10			705			(5		)
Other income from other real estate	239			—			239			—
Change in FDIC loss share receivable	—			(945		)	—			(3,209		)
Change in FDIC clawback liability	—			(50		)	—			(462		)
Other expenses	(325		)	(378		)	(652		)	(849		)
PCI assets income before income tax expense	$	4,526		$	1,640		$	7,106		$	5,206

Accelerated cash flows and other incremental accretion consists of the interest income on PCI loans in excess of contractual interest on the loans. The contractual amount of interest is included in the Company's core results. At June 30, 2016, the remaining accretable yield on the portfolio was estimated to be $18 million and the non-accretable difference was approximately $23 million. Absent cash flow accelerations or pool impairment, the Company currently estimates average PCI loan balances for 2016 to be approximately $60 million, and income from accelerated cash flows and other incremental accretion to be between $9 million and $11 million.

34

Noninterest Income

The following table presents a comparative summary of the major components of noninterest income for the periods indicated.

	Three months ended June 30,
(in thousands)	2016		2015			Increase (decrease)
Service charges on deposit accounts	$	2,188	$	1,998		$	190		10	%
Wealth management revenue	1,644		1,778			(134		)	(8	)%
Other service charges and fee income	952		840			112			13	%
Gain on state tax credits, net	153		74			79			107	%
Miscellaneous income - core	1,168		2,051			(883		)	(43	)%
Core noninterest income(1)	6,105		6,741			(636		)	(9	)%
Gain on sale of other real estate from PCI loans	705		10			695			6,950	%
Change in FDIC loss share receivable	—		(945		)	945			(100	)%
Other income from PCI assets	239		—			239			—	%
Total noninterest income	$	7,049	$	5,806		$	1,243		21	%
(1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption "Use of Non-GAAP Financial Measures."

	Six months ended June 30,
(in thousands)	2016		2015			Increase (decrease)
Service charges on deposit accounts	$	4,231	$	3,854		$	377		10	%
Wealth management revenue	3,306		3,518			(212		)	(6	)%
Other service charges and fee income	1,820		1,593			227			14	%
Gain on state tax credits, net	671		748			(77		)	(10	)%
Gain on sale of other real estate - core	123		34			89			262	%
Miscellaneous income - core	1,959		2,833			(874		)	(31	)%
Core noninterest income (1)	12,110		12,580			(470		)	(4	)%
Gain (loss) on sale of other real estate from PCI loans	705		(5		)	710			(14,200	)%
Gain on sale of investment securities	—		23			(23		)	(100	)%
Change in FDIC loss share receivable	—		(3,209		)	3,209			(100	)%
Other income from PCI assets	239		—			239			—	%
Total noninterest income	$	13,054	$	9,389		$	3,665		39	%
(1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption "Use of Non-GAAP Financial Measures."

Noninterest income increased$3.7 million, or 39% in the first six months of 2016 compared to the first six months of 2015, primarily from the impact of the Company's termination of FDIC loss share agreements in the fourth quarter of 2015. Core noninterest income¹declined4% in the first six months of 2016 due to higher allocation fees from tax credit projects and higher fees earned from recoveries received during the first six months of 2015.

35

Noninterest Expense

The following table presents a comparative summary of the major components of noninterest expense for the periods indicated.

	Three months ended June 30,
(in thousands)	2016		2015		Increase (decrease)
Core expenses (1):
Employee compensation and benefits - core	$	12,185	$	11,030	$	1,155		10	%
Occupancy - core	1,584		1,598		(14		)	(1	)%
Data processing - core	1,172		1,097		75			7	%
FDIC and other insurance	738		665		73			11	%
Professional fees - core	718		837		(119		)	(14	)%
Loan, legal and other real estate expense - core	218		490		(272		)	(56	)%
Other - core	3,831		3,313		518			16	%
Core noninterest expense(1)	20,446		19,030		1,416			7	%
FDIC clawback	—		50		(50		)	(100	)%
Executive severance	332		—		332			—	%
Other non-core	250		—		250			—	%
Other expenses related to PCI loans	325		378		(53		)	(14	)%
Total noninterest expense	$	21,353	$	19,458	$	1,895		10	%
(1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption "Use of Non-GAAP Financial Measures."

	Six months ended June 30,
(in thousands)	2016		2015		Increase (decrease)
Core expenses (1):
Employee compensation and benefits - core	$	24,650	$	22,280	$	2,370		11	%
Occupancy - core	3,241		3,265		(24		)	(1	)%
Data processing - core	2,261		2,097		164			8	%
FDIC and other insurance	1,461		1,391		70			5	%
Professional fees - core	1,402		1,809		(407		)	(22	)%
Loan, legal and other real estate expense - core	472		621		(149		)	(24	)%
Other - core	7,394		6,635		759			11	%
Core noninterest expense (1)	40,881		38,098		2,783			7	%
FDIC clawback	—		462		(462		)	(100	)%
Executive severance	332		—		332			—	%
Other non-core	250		—		250			—	%
Other expenses related to PCI loans	652		848		(196		)	(23	)%
Total noninterest expense	$	42,115	$	39,408	$	2,707		7	%
(1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption "Use of Non-GAAP Financial Measures."

Noninterest expenses were$42.1 millionfor thesixmonths endedJune 30, 2016, compared to$39.4 millionfor thesixmonths endedJune 30, 2015.The increase was partly due to an increase in Employee compensation and benefits from investments in revenue producers.Core noninterest expenses¹, which exclude$0.3 millionof executive severance,$0.3 millionof other non-core expense and expenses directly related to PCI loans and related assets, increased$2.8

36

millionto$40.9 millionfor thesixmonths endedJune 30, 2016, from$38.1 millionfor the prior year period. The increase was largely due to an increase in Employee compensation and benefits from the addition ofclient service personnel to facilitate growth.

The Company's Core efficiency ratio¹ was 56.9% for the six months ended June 30, 2016, compared to 59.1% for the prior year, and reflects overall expense management and revenue growth trends. Core efficiency ratio is a non-GAAP measure. A reconciliation of Core efficiency ratio has been included in this MD&A section under the caption "Use of Non-GAAP Financial Measures".

The Company anticipates total noninterest expenses to be between $19.5 million and $21.5 million per quarter for 2016.

Income Taxes

The Company's income tax expense for the three and six months ended June 30, 2016, which includes both federal and state taxes, was $6.7 million and $12.6 million, respectively, compared to $4.8 million and $9.8 million, respectively, for the same periods of 2015. The combined federal and state effective income tax rate for the six months ended June 30, 2016 and 2015 was 35.1%.

37

Summary Balance Sheet

(in thousands)	June 30, 2016		December 31, 2015		Increase (decrease)
Total cash and cash equivalents	$	110,296	$	94,157	16,139		17.1	%
Securities	521,028		495,484		25,544		5.2	%
Portfolio loans	2,883,909		2,750,737		133,172		4.8	%
Purchased credit impaired loans	56,529		74,758		(18,229	)	(24.4	)%
Total assets	3,761,665		3,608,483		153,182		4.2	%
Deposits	3,028,236		2,784,591		243,645		8.7	%
Total liabilities	3,390,036		3,257,654		132,382		4.1	%
Total shareholders' equity	371,629		350,829		20,800		5.9	%

Assets

Loans by Type

The Company has a diversified loan portfolio, with no particular concentration of credit in any one economic sector; however, a substantial portion of the portfolio is secured by real estate, including loans classified as C&I loans. The ability of the Company's borrowers to honor their contractual obligations is partially dependent upon the local economy and its effect on the real estate market. The following table summarizes the composition of the Company's loan portfolio:

(in thousands)	June 30, 2016		December 31, 2015		Increase (decrease)
Commercial and industrial	$	1,540,457	$	1,484,327	$	56,130		3.8	%
Commercial real estate - investor owned	466,713		428,064		38,649			9.0	%
Commercial real estate - owner occupied	332,639		342,959		(10,320		)	(3.0	)%
Construction and land development	171,778		161,061		10,717			6.7	%
Residential real estate	211,155		196,498		14,657			7.5	%
Consumer and other	161,167		137,828		23,339			16.9	%
Portfolio loans	2,883,909		2,750,737		133,172			4.8	%
Purchased credit impaired loans	56,529		74,758		(18,229		)	(24.4	)%
Total loans	$	2,940,438	$	2,825,495	$	114,943		4.1	%

Portfolio loans grew by$133.2 million, to$2.9 billionatJune 30, 2016, when compared toDecember 31, 2015. PCI loans totaled$56.5 millionatJune 30, 2016, a decrease of$18.2 million, or 24%, from December 31, 2015, primarily as a result of principal paydowns and accelerated loan payoffs.

The following table illustrates loan growth with selected specialized lending detail:

38

(in thousands)	June 30, 2016		December 31, 2015		Increase (decrease)
Enterprise value lending	$	353,915	$	350,266	$	3,649	1.0	%
C&I - general	737,904		732,186		5,718		0.8	%
Life insurance premium financing	295,643		265,184		30,459		11.5	%
Tax credits	152,995		136,691		16,304		11.9	%
CRE, Construction, and land development	971,130		932,084		39,046		4.2	%
Residential	211,155		196,498		14,657		7.5	%
Other	161,167		137,828		23,339		16.9	%
Portfolio loans	$	2,883,909	$	2,750,737	$	133,172	4.8	%

Specialty lending products, especially Enterprise value lending, Life insurance premium financing, and Tax credits, consists of primarily C&I loans, and have contributed significantly to the Company's loan growth. These loans are sourced through relationships developed with estate planning firms and private equity funds, and are not bound geographically by our traditional three markets. These specialized loan products offer opportunities to expand and diversify geographically by entering into new markets. The Company continues to focus on originating high-quality C&I relationships as they typically have variable interest rates and allow for cross selling opportunities involving other banking products. C&I loan growth also supports our efforts to maintain the Company's asset sensitive interest rate risk position. The Company continues to expect loan growth at or above 10% for 2016.

39

Provision and Allowance for Loan Losses

The following table summarizes changes in the allowance for loan losses arising from loans charged off and recoveries on loans previously charged off, by loan category, and additions to the allowance charged to expense.

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2016			2015			2016			2015
Allowance at beginning of period, for portfolio loans	$	34,373		$	30,288		$	33,441		$	30,185
Loans charged off:
Commercial and industrial	(157		)	(1,578		)	(225		)	(3,062		)
Real estate:
Commercial	—			(664		)	—			(664		)
Construction and land development	—			(350		)	—			(350		)
Residential	—			—			—			(1,073		)
Consumer and other	(6		)	(4		)	(11		)	(15		)
Total loans charged off	(163		)	(2,596		)	(236		)	(5,164		)
Recoveries of loans previously charged off:
Commercial and industrial	502			420			555			1,189
Real estate:
Commercial	23			1,300			98			1,456
Construction and land development	8			115			14			175
Residential	36			87			70			113
Consumer and other	3			1			7			81
Total recoveries of loans	572			1,923			744			3,014
Net loan recoveries (chargeoffs)	409			(673		)	508			(2,150		)
Provision for portfolio loan losses	716			2,150			1,549			3,730
Allowance at end of period, for portfolio loans	$	35,498		$	31,765		$	35,498		$	31,765
Allowance at beginning of period, for purchased credit impaired loans	$	9,569		$	11,625		$	10,175		$	15,410
Loans charged off	(495		)	(5		)	(983		)	(2		)
Other	(187		)	(26		)	(232		)	(544		)
Net loan chargeoffs	(682		)	(31		)	(1,215		)	(546		)
Provision reversal for PCI loan losses	(336		)	—			(409		)	(3,270		)
Allowance at end of period, for purchased credit impaired loans	$	8,551		$	11,594		$	8,551		$	11,594
Total allowance at end of period	$	44,049		$	43,359		$	44,049		$	43,359
Portfolio loans, average	$	2,874,532		$	2,482,291		$	2,483,488		$	2,255,180
Portfolio loans, ending	2,883,909			2,542,555			2,883,909			2,542,555
Net chargeoffs to average portfolio loans	(0.06		)%	0.11		%	(0.04		)%	0.19		%
Allowance for portfolio loan losses to loans	1.23			1.25			1.23			1.25

The provision for loan losses on portfolio loans for the sixmonths ended June 30, 2016was $1.5 million, compared to $3.7 million for the comparable 2015 period. The provision for loan losses for the six month period ended June 30, 2016 was primarily to provide for loan growth.

40

For PCI loans, the Company remeasures contractual and expected cash flows periodically. When the remeasurement process results in a decrease in expected cash flows, typically due to an increase in expected credit losses, impairment is recorded through provision for loan losses. Similarly, when expected credit losses decrease in the remeasurement process, prior recorded impairment is reversed before the yield is increased prospectively. There was $0.4 million of provision reversal for loan losses on PCI loans for the six months ended June 30, 2016, compared to provision reversal of $3.3 million for the comparable 2015 period.

The allowance for loan losses on portfolio loans was 1.23% of portfolio loans at June 30, 2016 compared to 1.25% at June 30, 2015. Management believes the allowance for loan losses is adequate to absorb inherent losses in the loan portfolio and coverage trends reflect relatively steady improvements in credit quality measures and classified loan levels. The reduction in the ratio of allowance for loan losses to total loans over the prior year period is due to lower levels of nonperforming loans, as well as continued improvement in loss migration results.

Nonperforming assets

The following table presents the categories of nonperforming assets and other ratios as of the dates indicated.

(in thousands)	June 30, 2016			December 31, 2015			June 30, 2015
Non-accrual loans	$	10,493		$	8,797		$	16,751
Restructured loans	2,320			303			747
Total nonperforming loans (1)	12,813			9,100			17,498
Other real estate from originated loans	2,741			3,218			1,933
Other real estate from acquired loans	2,160			5,148			—
Total nonperforming assets (1) (2)	$	17,714		$	17,466		$	19,431
Total assets	$	3,761,665		$	3,608,483		$	3,371,078
Portfolio loans	2,883,909			2,750,737			2,542,555
Portfolio loans plus other real estate	2,888,810			2,759,103			2,544,488
Nonperforming loans to portfolio loans (1)	0.44		%	0.33		%	0.69		%
Nonperforming assets to total loans plus other real estate (1) (2)	0.61			0.63			0.76
Nonperforming assets to total assets (1) (2)	0.47			0.48			0.58
Allowance for portfolio loans to nonperforming loans (1)	277		%	367		%	182		%
(1) Excludes PCI loans, except for their inclusion in total assets.
(2) Other real estate from PCI loans included in Nonperforming assets beginning with the year ended December 31, 2015 due to termination of all existing FDIC loss share agreements.

41

Nonperforming loans

Nonperforming loans exclude PCI loans that are accounted for on a pool basis, as the pools are considered to be performing. See Item 1, Note 5 – Purchased Credit Impaired Loans for more information on these loans.

Nonperforming loans based on loan type were as follows:

(in thousands)	June 30, 2016		December 31, 2015		June 30, 2015
Commercial and industrial	$	4,748	$	4,514	$	5,998
Commercial real estate	248		1,105		3,026
Construction and land development	2,576		2,800		5,968
Residential real estate	670		681		2,506
Consumer and other	4,571		—		—
Total	$	12,813	$	9,100	$	17,498

The increase in Nonperforming loans was primarily due to the increase in the Consumer and other loans category which consists of one tax credit relationship for a multifamily property.

The following table summarizes the changes in nonperforming loans:

	Six months ended June 30,
(in thousands)	2016			2015
Nonperforming loans beginning of period	$	9,100		$	22,244
Additions to nonaccrual loans	7,555			16,100
Additions to restructured loans	2,320			—
Chargeoffs	(35		)	(5,297		)
Other principal reductions	(4,932		)	(14,523		)
Moved to other real estate	(283		)	(450		)
Moved to performing	(912		)	(576		)
Loans past due 90 days or more and still accruing interest	—			—
Nonperforming loans end of period	$	12,813		$	17,498

Nonperforming loans at June 30, 2016 increased by $3.7 million, or 41%, when compared to December 31, 2015, and decreased by $4.7 million, or 27%, when compared to June 30, 2015.

Other real estate

Other real estate at June 30, 2016, was $4.9 million, compared to $9.8 million at June 30, 2015.

The following table summarizes the changes in Other real estate:

	Six months ended June 30,
(in thousands)	2016			2015
Other real estate beginning of period	$	8,366		$	7,840
Additions and expenses capitalized to prepare property for sale	2,203			5,998
Writedowns in value	—			(295		)
Sales	(5,668		)	(3,701		)
Other real estate end of period	$	4,901		$	9,842

42

Writedowns in fair value are recorded in Loan legal and other real estate expense based on current market activity shown in the appraisals. In the six months ended June 30, 2016, the Company realized a net gain of $0.8 million from the sales of other real estate, primarily from the sale of a property related to PCI loans, and recorded these gains as part of Noninterest income.

Liabilities

Liabilities totaled $3.4 billion at June 30, 2016, compared to $3.3 billion at December 31, 2015. The increase in liabilities was largely due to a $244 million increase in total deposits, offset by a decrease of $32 million in Federal Home Loan Bank advances and a decrease of $70 million in other borrowings.

Deposits

(in thousands)	June 30, 2016			December 31, 2015			Increase (decrease)
Demand deposits	$	753,173		$	717,460		35,713		5.0	%
Interest-bearing transaction accounts	628,505			564,420			64,085		11.4	%
Money market accounts	1,019,304			1,053,662			(34,358	)	(3.3	)%
Savings	105,224			92,861			12,363		13.3	%
Certificates of deposit:
Brokered	166,507			39,573			126,934		320.8	%
Other	355,523			316,615			38,908		12.3	%
Total deposits	$	3,028,236		$	2,784,591		243,645		8.7	%
Non-time deposits / total deposits	83		%	87		%
Demand deposits / total deposits	25		%	26		%

Total deposits at June 30, 2016 were $3.0 billion, an increase of $244 million, or 9%, from December 31, 2015. The increase in deposits within our brokered certificates of deposit was to provide for loan growth in the year. The composition of our noninterest bearing deposits remained relatively stable at 25% of total deposits at June 30, 2016 compared to December 31, 2015. Lower rates on time deposit balances and a change in composition modestly improved deposit costs during the first six months of 2016 to 0.35%, as compared to 0.40% for the same period in 2015.

Core deposits, defined as total deposits excluding time deposits, were $2.5 billion at June 30, 2016, an increase of $78 million, or 3%, from December 31, 2015.

Shareholders' Equity

Shareholders' equity totaled $372 million at June 30, 2016, an increase of $20.8 million from December 31, 2015. Significant activity during the six months ended June 30, 2016 was as follows:

• Net income of $23.4 million,

• Other comprehensive income of $5.3 million from the change in unrealized gains on investment securities,

• Repurchase of 179,018 common shares for $4.7 million,

• Dividends paid on common shares of $3.8 million.

Liquidity and Capital Resources

Liquidity

The objective of liquidity management is to ensure we have the ability to generate sufficient cash or cash equivalents in a timely and cost-effective manner to meet our commitments as they become due. Typical demands on liquidity are run-off from demand deposits, maturing time deposits which are not renewed, and fundings under credit

43

commitments to customers. Funds are available from a number of sources, such as from the core deposit base and from loans and securities repayments and maturities.

Additionally, liquidity is provided from sales of the securities portfolio, fed fund lines with correspondent banks, borrowings from the Federal Reserve and the FHLB, the ability to acquire large and brokered deposits, and the ability to sell loan participations to other banks. These alternatives are an important part of our liquidity plan and provide flexibility and efficient execution of the asset-liability management strategy.

The Bank's Asset-Liability Management Committee oversees our liquidity position, the parameters of which are approved by the Bank's Board of Directors.Our liquidity position is monitored monthly by producing a liquidity report, which measures the amount of liquid versus non-liquid assets and liabilities. Ourliquidity management framework includes measurement of several key elements, such as the loan to deposit ratio, a liquidity ratio, and a dependency ratio. The Company's liquidity framework also incorporates contingency planning to assess the nature and volatility of funding sources and to determine alternatives to these sources. While core deposits and loan and investment repayments are principal sources of liquidity, funding diversification is another key element of liquidity management and is achieved by strategically varying depositor types, terms, funding markets, and instruments.

Parent Company liquidity

The parent company's liquidity is managed to provide the funds necessary to pay dividends to shareholders, service debt, invest in subsidiaries as necessary, and satisfy other operating requirements. The parent company's primary funding sources to meet its liquidity requirements are dividends and payments from the Bank and proceeds from the issuance of equity (i.e. stock option exercises, stock offerings). Another source of funding for the parent company includes the issuance of subordinated debentures and other debt instruments.

The parent company currently has a senior unsecured revolving credit agreement ("Revolving Agreement") with another bank allowing for borrowings up to $20 million. As of June 30, 2016, there are no outstanding balances under the Revolving Agreement. Additionally, the Company received two quarterly dividends from the Bank of $2.5 million each as part of the Company's ongoing capital management.  Management believes the current level of cash at the holding company of $7.0 million will be sufficient to meet projected cash needs for at least the next year.

As of June 30, 2016, the Company had $56.8 million of outstanding subordinated debentures as part of eight Trust Preferred Securities Pools. These securities are classified as debt but are included in regulatory capital and the related interest expense is tax-deductible, which makes them an attractive source of funding.

Bank liquidity

The Bank has a variety of funding sources available to increase financial flexibility. In addition to amounts currently borrowed, at June 30, 2016 the Bank has borrowing capacity of $310.7 million from the FHLB of Des Moines under blanket loan pledges, and has an additional $889.9 million available from the Federal Reserve Bank under a pledged loan agreement. The Bank has unsecured federal funds lines with five correspondent banks totaling $60.0 million.

Investment securities are another important tool to the Bank's liquidity objectives. Of the $478.5 million of the securities available for sale at June 30, 2016, $336.8 million was pledged as collateral for deposits of public institutions, treasury, loan notes, and other requirements. The remaining $141.7 million could be pledged or sold to enhance liquidity, if necessary.

In the normal course of business, the Bank enters into certain forms of off-balance sheet transactions, including unfunded loan commitments and letters of credit. These transactions are managed through the Bank's various risk management processes. Management considers both on-balance sheet and off-balance sheet transactions in its evaluation of the Company's liquidity. The Bank has $1.1 billion in unused commitments as of June 30, 2016. While this commitment level would exhaust the majority the Company's current liquidity resources, the nature of these commitments is such that the likelihood of funding them in the aggregate at any one time is low.

44

Capital Resources

The Company and the Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and itsbank affiliate must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The banking affiliate’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier 1, and Common equity tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. To be categorized as “well capitalized”, banks must maintain minimum total risk-based (10%), Tier 1 risk-based (8%), Common equity tier 1 risk-based (6.5%), and Tier 1 leverage ratios (5%). As of June 30, 2016, and December 31, 2015, the Company and the Bank met all capital adequacy requirements to which they are subject.

The Bank continues to exceed regulatory standards and met the definition of “well-capitalized” (the highest category) at June 30, 2016. The Company adopted the Regulatory Capital Framework (Basel III) in 2015, and has implemented the necessary processes and procedures to comply.

The following table summarizes the Company's various capital ratios at the dates indicated:

(in thousands)	June 30, 2016			December 31, 2015			Well Capitalized Minimum %
Total capital to risk-weighted assets	12.16		%	11.85		%	10.00	%
Tier 1 capital to risk-weighted assets	10.92		%	10.61		%	8.00	%
Common equity tier 1 capital to risk-weighted assets	9.38		%	9.05		%	6.50	%
Leverage ratio (Tier 1 capital to average assets)	10.53		%	10.71		%	5.00	%
Tangible common equity to tangible assets1	9.08		%	8.88		%	N/A
Tier 1 capital	$	389,978		$	374,676
Total risk-based capital	434,102			418,367
1 Not a required regulatory capital ratio

The Company believes the tangible common equity ratio and the common equity tier 1 capital ratio are important measures of capital strength even though they are considered to be non-GAAP measures. The tables further within MD&A reconcile these ratios to U.S. GAAP.

45

Use of Non-GAAP Financial Measures:

The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net income and net interest margin, and other Core performance measures, regulatory capital ratios, and the tangible common equity ratio, in this report that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company's financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

The Company considers its Core performance measures presented in this report and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of PCI loans and related income and expenses, the impact of certain non-comparable items, and the Company's operating performance on an ongoing basis. Core performance measures include contractual interest on PCI loans, but exclude incremental accretion on these loans. Core performance measures also exclude the Change in FDIC receivable, Gain or loss on sale of other real estate from PCI loans, and expenses directly related to PCI loans and other assets formerly covered under FDIC loss share agreements. Core performance measures also exclude certain other income and expense items, such as executive separation costs and the gain or loss on sale of investment securities, the Company believes to be not indicative of or useful to measure the Company's operating performance on an ongoing basis. The Company believes that the tangible common equity ratio provides useful information to investors about the Company's capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.

The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company's performance and capital strength. The Company's management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company's operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the following tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated.

46

Core Performance Measures

	For the Three Months ended									For the Six Months ended
(in thousands)	June 30, 2016			March 31, 2016			June 30, 2015			June 30, 2016			June 30, 2015
CORE PERFORMANCE MEASURES
Net interest income	$	33,783		$	32,428		$	29,280		$	66,211		$	58,325
Less: Incremental accretion income	3,571			2,834			3,003			6,405			6,461
Core net interest income	30,212			29,594			26,277			59,806			51,864
Total noninterest income	7,049			6,005			5,806			13,054			9,389
Less: Change in FDIC loss share receivable	—			—			(945		)	—			(3,209		)
Less (plus): Gain (loss) on sale of other real estate from PCI loans	705			—			10			705			(5		)
Less: Gain on sale of investment securities	—			—			—			—			23
Less: Other income from PCI assets	239			—			—			239			—
Core noninterest income	6,105			6,005			6,741			12,110			12,580
Total core revenue	36,317			35,599			33,018			71,916			64,444
Provision for portfolio loans	716			833			2,150			1,549			3,730
Total noninterest expense	21,353			20,762			19,458			42,115			39,408
Less: FDIC clawback	—			—			50			—			462
Less: Other expenses related to PCI loans	325			327			378			652			848
Less: Executive severance	332			—			—			332			—
Less: Other non-core expense	250			—			—			250			—
Core noninterest expense	20,446			20,435			19,030			40,881			38,098
Core income before income tax expense	15,155			14,331			11,838			29,486			22,616
Total income tax expense	6,747			5,886			4,762			12,633			9,784
Less: Non-core income tax expense	1,510			989			628			2,499			2,003
Core income tax expense	5,237			4,897			4,134			10,134			7,781
Core net income	$	9,918		$	9,434		$	7,704		$	19,352		$	14,835
Core earnings per share	$	0.49		$	0.47		$	0.38		$	0.96		$	0.74
Core return on average assets	1.07		%	1.04		%	0.93		%	1.06		%	0.91		%
Core return on average common equity	10.89		%	10.66		%	9.34		%	10.78		%	9.17		%
Core return on average tangible common equity	11.98		%	11.76		%	10.41		%	11.87		%	10.24		%
Core efficiency ratio	56.30		%	57.40		%	57.64		%	56.85		%	59.12		%

47

Net Interest Margin to Core Net Interest Margin (fully tax equivalent)

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2016			2015			2016			2015
Net interest income	$	34,227		$	29,691		$	67,114		$	59,158
Less: Incremental accretion income	3,571			3,003			6,405			6,461
Core net interest income	$	30,656		$	26,688		$	60,709		$	52,697
Average earning assets	$	3,506,801		$	3,096,294		$	3,460,296		$	3,072,188
Reported net interest margin	3.93		%	3.85		%	3.90		%	3.88		%
Core net interest margin	3.52		%	3.46		%	3.53		%	3.46		%

Tangible common equity ratio

(in thousands)	June 30, 2016			December 31, 2015
Total shareholders' equity	$	371,629		$	350,829
Less: Goodwill	30,334			30,334
Less: Intangible assets	2,589			3,075
Tangible common equity	$	338,706		$	317,420
Total assets	$	3,761,665		$	3,608,483
Less: Goodwill	30,334			30,334
Less: Intangible assets	2,589			3,075
Tangible assets	$	3,728,742		$	3,575,074
Tangible common equity to tangible assets	9.08		%	8.88		%

48

Common equity tier 1 ratio

(in thousands)	June 30, 2016			December 31, 2015
Total shareholders' equity	$	371,629		$	350,829
Less: Goodwill	30,334			30,334
Less: Intangible assets, net of deferred tax liabilities	958			759
Less: Unrealized gains	5,517			218
Plus: Qualifying trust preferred securities	55,100			55,100
Plus: Other	58			58
Total tier 1 capital	389,978			374,676
Less: Qualifying trust preferred securities	55,100			55,100
Less: Other	35			23
Common equity tier 1 capital	$	334,843		$	319,553
Total risk-weighted assets determined in accordance with prescribed regulatory requirements	$	3,570,437		$	3,530,521
Common equity tier 1 capital to risk-weighted assets	9.38		%	9.05		%

Critical Accounting Policies

The impact and any associated risks related to the Company's critical accounting policies on business operations are described throughout "Management's Discussion and Analysis of Financial Condition and Results of Operations," where such policies affect our reported and expected financial results. For a detailed description on the application of these and other accounting policies, see the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

49

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The disclosures set forth in this item are qualified by the section captioned “Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995” included in Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report and other cautionary statements set forth elsewhere in this report.

Interest Rate Risk

Our interest rate risk management practices are aimed at optimizing net interest income, while guarding against deterioration that could be caused by certain interest rate scenarios. Interest rate sensitivity varies with different types of interest-earning assets and interest-bearing liabilities. We attempt to maintain interest-earning assets, comprised primarily of both loans and investments, and interest-bearing liabilities, comprised primarily of deposits, maturing or repricing in similar time horizons in order to minimize or eliminate any impact from market interest rate changes. In order to measure earnings sensitivity to changing rates, the Company uses an earnings simulation model.

The Company determines the sensitivity of its short-term future earnings to a hypothetical plus or minus 100 to 300 basis point parallel rate shock through the use of simulation modeling. The simulation of earnings includes the modeling of the balance sheet as an ongoing entity. Future business assumptions involving administered rate products, prepayments for future rate-sensitive balances, and the reinvestment of maturing assets and liabilities are included. These items are then modeled to project net interest income based on a hypothetical change in interest rates. The resulting net interest income for the next 12-month period is compared to the net interest income amount calculated using flat rates. This difference represents the Company's earnings sensitivity to a plus or minus 100 basis points parallel rate shock.

The following table summarizes the expected impact of interest rate shocks on net interest income (due to the current level of interest rates, the 200 and 300 basis point downward shock scenarios are not shown):

Rate Shock	Annual % change in net interest income
+ 300 bp	8.2%
+ 200 bp	5.7%
+ 100 bp	3.0%
- 100 bp	-3.4%

The Company occasionally uses interest rate derivative financial instruments as an asset/liability management tool to hedge mismatches in interest rate exposure indicated by the net interest income simulation described above. They are used to modify the Company's exposures to interest rate fluctuations and provide more stable spreads between loan yields and the rate on their funding sources. At June 30, 2016, the Company had $3.5 million in notional amount of outstanding interest rate caps, to help manage interest rate risk.

50

ITEM 4: CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of the Company’s Chief Executive Officer (CEO) and the Chief Financial Officer (CFO), management has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15, as of June 30, 2016. Disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Based on that evaluation, the CEO and CFO concluded the Company’s disclosure controls and procedures were effective as of June 30, 2016 to provide reasonable assurance of the achievement of the objectives described above.

Changes to Internal Controls

There were no changes during the period covered by this Quarterly Report on Form 10-Q in the Company's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, those controls.

PART II - OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

The Company and its subsidiaries are, from time to time, parties to various legal proceedings arising out of their businesses. Management believes there are no such proceedings pending or threatened against the Company or its subsidiaries which, if determined adversely, would have a material adverse effect on the business, consolidated financial condition, results of operations or cash flows of the Company or any of its subsidiaries.

ITEM 1A: RISK FACTORS

For information regarding risk factors affecting the Company, please see the cautionary language regarding forward-looking statements in the introduction to Item 2 of Part I of this Report on Form 10-Q, and Part I, Item 1A of our Report on Form 10-K for the fiscal year ended December 31, 2015. There have been no material changes to the risk factors described in such Annual Report on Form 10-K.

51

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table provides information on repurchases by the Company of its common stock in each month of the quarter ended June 30, 2016.

Period	Total number of shares purchased (a)	Weighted-average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
April 1, 2016 through April 30, 2016	—	$	—	—	1,839,900
May 1, 2016 through May 31, 2016	—	—		—	1,839,900
June 1, 2016 through June 30, 2016	18,918	26.46		18,918	1,820,982
Total	18,918	$	26.46	18,918

(a) In May 2015, the Company’s board of directors authorized the repurchase of up to two million shares of the Company’s common stock. The repurchases may be made in open market or privately negotiated transactions and the repurchase program will remain in effect until fully utilized or until modified, superseded or terminated. The timing and exact amount of common stock repurchases will depend on a number of factors including, among others, market and general economic conditions, economic capital and regulatory capital considerations, alternative uses of capital, the potential impact on our credit ratings, and contractual and regulatory limitations.

ITEM 6: EXHIBITS

Exhibit No.	Description
	Registrant hereby agrees to furnish to the Commission, upon request, the instruments defining the rights of holders of each issue of long-term debt of Registrant and its consolidated subsidiaries.
10.1	Employment separation and release agreement dated effective July 23, 2016 by and between Registrant and Frank H. Sanfilippo
*12.1	Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends.
*31.1	Chief Executive Officer's Certification required by Rule 13(a)-14(a).
*31.2	Chief Financial Officer's Certification required by Rule 13(a)-14(a).
**32.1	Chief Executive Officer Certification pursuant to 18 U.S.C. § 1350, as adopted pursuant to section § 906 of the Sarbanes-Oxley Act of 2002.
**32.2	Chief Financial Officer Certification pursuant to 18 U.S.C. § 1350, as adopted pursuant to section § 906 of the Sarbanes-Oxley Act of 2002.
101	Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2016, is formatted in XBRL interactive data files: (i) Consolidated Balance Sheet at March 31, 2016 and December 31, 2015; (ii) Consolidated Statement of Income for the three months ended March 31, 2016 and 2015; (iii) Consolidated Statement of Comprehensive Income for the three months ended March 31, 2016 and 2015; (iv) Consolidated Statement of Changes in Equity for the three months ended March 31, 2016 and 2015; (v) Consolidated Statement of Cash Flows for the three months ended March 31, 2016 and 2015; and (vi) Notes to Financial Statements.

52

* Filed herewith

** Furnished herewith. Notwithstanding any incorporation of this Quarterly Statement on Form 10-Q in any other filing by the Registrant, Exhibits furnished herewith and designated with two (**) shall not be deemed incorporated by reference to any other filing unless specifically otherwise set forth herein or therein.

53

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Clayton, State of Missouri on the day of July 29, 2016.

ENTERPRISE FINANCIAL SERVICES CORP
By:	/s/ Peter F. Benoist
	Peter F. Benoist
	Chief Executive Officer
By:	/s/ Keene S. Turner
	Keene S. Turner
	Chief Financial Officer

54

EX-10.1

EXHIBIT 10.1

EMPLOYMENT SEPARATION AND RELEASE AGREEMENT

This Employment Separation and Release Agreement (the “Agreement”) is made and entered into by and between ENTERPRISE FINANCIAL SERVICES CORP (the “Company”), the principal business address of which is 150 North Meramec Avenue, St. Louis, MO 63105, and Frank Sanfilippo (“Executive”), whose principal residence is _______________.

WHEREAS, Executive is currently employed by the Company as Executive Vice President and Chief Operating Officer;

WHEREAS, the Company has determined to eliminate the Executive’s position resulting in an involuntary separation from the employment of Executive other than for cause as provided in his Enterprise Financial Services Corp Amended and Restated Executive Employment Agreement dated August 8, 2014;

WHEREAS, Executive will no longer be considered an insider for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, as of June 30, 2016; and

WHEREAS, the Company and Executive desire to sever the employment relationship between them in a manner mutually beneficial to both parties;

NOW, THEREFORE, for and in consideration of the premises and of the mutual covenants and promises set forth herein, the adequacy of which is acknowledged by each of the parties, it is hereby agreed as follows.

Effective Date

This Agreement, being delivered to Executive on July 1, 2016, must be executed by Executive and returned to the Company on or before July 22, 2016, in order to become effective. After such delivery to the Company, the Agreement shall become effective upon the eighth day following the date on which it is executed by Executive, without Executive having exercised his revocation right described on page 4 below (the “Effective Date”). The Effective Date shall be not later than July 30, 2016.

Termination of Employment

The Company and Executive agree that nothing contained in this Agreement is an admission by any party hereto of any wrongdoing, either in violation of an applicable law or otherwise, and that nothing in this Agreement is to be construed as such by any person. Employee’s employment with the Company shall terminate July 15, 2016 (the "Termination Date"). On or before the Company's next regular payday following the Termination Date, Executive shall be paid his accrued, unused Paid Time Off.

Severance Pay

Executive's agreement to the obligations set forth in this Agreement is a required condition to certain of the Company's obligations set forth in this Agreement. In consideration of the Executive's agreement to the obligations set forth herein, the Company shall pay to Executive the following (collectively the “Severance Payments”):

Executive will be paid: (i) One (1) year of Executive's Base Salary at the rate payable at the time of such termination, which is Two Hundred Sixty-Five Thousand Two Hundred Twenty-Five Dollars and Zero Cents ($265,225.00); plus (ii) Annual cash Targeted Incentives for the year in which such termination occurs as though all "target levels" of performance for such year are fully and completely achieved, in the amount of Fifty-Seven Thousand Five Hundred Dollars and Zero Cents ($57,500.00). Amount will be payable in two (2) payments, the first payment on July 15, 2016 in the amount of Eleven Thousand Fifty-One Dollars and Five Cents ($11,051.05), less applicable taxes and withholdings and a second payment of the remainder of the amount of Three Hundred Eleven Thousand Six Hundred Seventy-Three Dollars and Ninety-Five Cents ($311,673.95) ($322,725.00 - $11,051.05 = $311,673.95), less applicable taxes and withholdings, on the 60th day after Executive's Separation from Service, which will be September 13, 2016.

Executive agrees that Executive is not otherwise entitled to the Severance Payments and that the payments constitute adequate consideration for the obligations undertaken by him pursuant to this Agreement. Except as specifically stated herein, Executive shall not accrue any benefits after the Effective Date, and no other amounts (other than any vested benefits accrued by Executive under any qualified retirement plan maintained by the Company), are due Executive by the Company. Any amounts due and owing the Company from Executive pursuant to the secured interest only note between the parties may be offset from the Severance Payments if not paid when due under such note.

General Release

Executive, in consideration of the Severance Payments, and with the intent of binding Executive, Executive’s heirs, personal representatives, administrators, successors, and assigns, hereby releases, acquits and forever discharges the Company and all its present, former, and future officers, directors, executives, agents, attorneys, divisions, subsidiaries, predecessors, successors, related companies, shareholders, partners, and members of all of them, personal representatives, and assigns, from and against any and all claims, charges, demands, rights of action, liabilities (including attorneys’ fees and costs actually incurred), judgments, jury verdicts, or lawsuits arising on or before the Effective Date, including but not limited to: (l) any and all claims relating to alleged discrimination or otherwise relating to terms and conditions of Executive’s employment, including but not limited to, any and all actions arising under Title VII, the Age Discrimination in Employment Act, the Missouri Human Rights Act, 42 U.S.C. §1981, COBRA, The Older Workers’ Benefit Protection Act (OWBPA), Employment Retirement Income Security Act (ERISA), Family Medical Leave Act (FMLA), Fair Labor Standard Act (FLSA), Missouri Workers’ Compensation Act, the Americans with Disabilities Act, the Genetic Information Non-Discrimination Act (GINA), and any and all other local State or Federal laws or regulations; (2) any and all actions for breach of contract, violation of public policy, promissory estoppel, fraud, negligence, wrongful or retaliatory discharge, defamation, intentional infliction of emotional distress, and/or other personal or business injury; (3) any and all rights to or claims for compensation (including, but not limited to, salary, severance pay, paid time off pay, bonuses, incentives, pension, insurance, or any other employment or fringe benefits or compensation of any kind whatsoever) except as provided for in this Agreement, rights to or claims for liquidated damages, rights to or claims for reinstatement, rights to or claims for contract, compensatory, exemplary or punitive damages, rights to or claims for injunctive relief, rights to or claims for front pay, rights to or claims for expenses, costs, or attorneys’ fees; (4) any and all claims under any and all employment agreements or offer letters Executive has had with or received from the Company; and (5) any and all claims for losses or damages of whatsoever kind or nature which Executive now has or has ever had, both known or unknown, or which Executive’s heirs, personal representatives, administrators, successors, and assigns hereinafter can, shall, or may have, both known or unknown, against the Company and/or all its present, former and future officers, directors, executives, agents, attorneys, divisions, subsidiaries, predecessors, successors, related companies, administrators, personal representatives, and assigns. Executive hereby expressly waives the benefit of any

statute or rule of law, which, if applied to this Agreement, would otherwise exclude from its binding effect any claims not now known by Executive to exist. Executive further acknowledges, understands and agrees that any claims Executive may have against the Company are hereby released and waived for all purposes and all times.

Executive further explicitly waives all required notices under any state or federal WARN act, all rights to future employment with the Company, and agrees not to apply for employment with the Company. This release expressly extends to all claims based on the present and future effects of past acts of the Company.

This Agreement shall not limit, in any way, Executive’s right to file a charge or participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission. Executive agrees that Executive has waived Executive’s right to monetary or other recovery from any claim pursued with the Equal Employment Opportunity Commission or any other federal, state or local administrative agency on Executive’s behalf arising out of or related to Executive’s employment with and/or separation from employment with the Company.

Nothing in this Agreement shall be construed to mean that Executive is waiving or releasing claims to enforce this Agreement, claims for workers’ compensation benefits, claims for unemployment benefits, claims for any vested benefits owed to Executive, claims for any vested rights Executive may have under any retirement plan of the Company, claims for rights under COBRA or claims arising after the date Executive executes this Agreement.

Executive understands and agrees that the General Release above applies to and includes all known, suspected, unknown or unsuspected claims, consequences or results.

Executiverepresents and warrants that, to the best of Executive’s knowledge and except as specifically described in this Agreement, Executive possesses no federal or state leave claims, Fair Labor Standards Act (“FLSA”) claims, or workers’ compensation claims against the released parties. Executive further represents and warrants that Executive has received any and all compensation pursuant to state and federal wage and hour laws and any and all leave pursuant to the FMLA or any other federal or state law to which Executive may have been entitled as an executive of the Company, and that Executive is not currently aware of any facts or circumstances constituting a violation of any federal or state leave laws, the FLSA, or of any workers’ compensation statute.

Age Claim Waiver

Executive understands that there is included within the release given by Executive in the immediately preceding section a release and waiver of all rights and claims Executive may have under the Age Discrimination in Employment Act, 29 U.S.C. §621 et seq. (the “ADEA”). In order to comply with the Act, the Company hereby advises Executive as follows:

(a)Executive has the right, and is encouraged to, consult with an attorney prior to executing this Agreement.

(b)The waiver and release of rights and claims under the ADEA pertains only to rights and claims arising on or before the Effective Date of this Agreement, but not to rights and claims under the ADEA that arise after the Effective Date of this Agreement.

(c)Executive shall have a period of twenty-one (21) days after the date on which this Agreement is delivered to Executive to consider whether or not to execute it. Executive acknowledges receipt of this Agreement on July 1, 2016.

(d)Notwithstanding any other provisions hereof, this Agreement shall not become effective until seven (7) days have passed following the date on which it is executed by Executive. During said 7-day period, Executive may revoke this Agreement by notice in writing to the Company, in which case this Agreement shall be null and void and unenforceable by either party and Executive shall not be entitled to receive the Severance Payments from the Company. Notice pursuant to this section shall be directed to Lorie White, 1281 N. Warson Road, St. Louis, MO 63132.

(e)If Executive revokes acceptance of this Agreement, the Company shall have no obligation to pay any part of the Severance Payments described in this Agreement.

(f)Executive confirms that this Agreement is written in a manner calculated to be understood, and that Executive understands the intended effect of each and every provision of this Agreement.

(g)Executive has had a reasonable amount of time to consider the terms of this Agreement.

(h)Executive has decided to accept this Agreement knowingly, voluntarily and without duress or coercion of any kind.

Other Agreements

The provisions of this Agreement shall be in addition to and not supersede or override the terms and conditions of the Executive’s Stock Appreciation Right Agreements executed by Executive on June 15, 2007, June 13, 2008 and September 24, 2008 and the Enterprise Financial Services Corp Amended and Restated Executive Employment Agreement executed by Executive on August 8, 2014.

Executive hereby acknowledges and re-affirms his agreement to Executive's obligations in Section 8 - 10 of the Enterprise Financial Services Corp Amended and Restated Executive Employment Agreement executed by Executive on August 8, 2014 regarding confidentiality and non-disparagement (Section 8), use of proprietary information (Section 9), and non-competition and non-solicitation in the markets of Company's present, former or prospective customers (St. Louis, Kansas City and Phoenix) (Section 10). These duties are limited only in this Agreement by a definition of non-competition as: for a period of one year following a termination of Executive’s employment for any reason (the “Non-Compete Period”), Executive shall not, without the prior written consent of the Company, directly or indirectly, own, manage, operate, control, be connected with as an officer, employee, partner, consultant or otherwise, or otherwise engage or participate in (except as an employee of the Company, or its Affiliates) any Person engaged in the operation, ownership or management of a bank, trust company, bank holding company, wealth management or financial services business within the Metropolitan Statistical Areas of St. Louis, Kansas City, Phoenix, Arizona or any other city in which the Company or any of its Affiliates has an office at the time of such termination. The St. Louis Metropolitan area is defined as St. Louis City, St. Louis County or St. Charles County; the Kansas City Metropolitan area is defined as Jackson County, Missouri or Johnson County, Kansas; and the Phoenix Metropolitan area is defined as Maricopa County, Arizona.

Executive shall also not, except on behalf of or with the prior written consent of the Company, directly or indirectly, whether alone or in association, or combination with any other Person, or as an officer, director, shareholder, member, manager, employee, agent, independent contractor, consultant, advisor, joint venturer, partner or otherwise and whether or not for pecuniary benefit:

(i) solicit, take away, attempt to take away, divert, attempt to divert, engage in business with, contract with or in any way interfere with the relationship between any Protected Customer (as defined below) and the Company or its Affiliates.

(ii) (1) hire or employ any other employee of the Company, (2) entice, solicit, recruit or induce any other employee of the Company or its Affiliates to leave such employ or (3) otherwise interfere with the employment of any other employee of the Company or its Affiliates.

Before Executive becomes employed by or becomes a consultant for a Person during the Non-Compete Period, Executive shall inform such Person of the provisions of this Section. Provided, however, that nothing contained herein shall prevent such Person employing Executive from continuing to provide services to any individual or other entity that was a customer of the Person prior to the date of the termination of Executive's employment with the Company. Company may advise any third party with whom Executive may consider, establish or contract a relationship, including but not limited to an employment relationship of this Agreement and its terms, and the Company shall have no liability for so acting.

For purposes of this Agreement, "Protected Customer" means any Person and its/his/her Affiliate (i) for whom the Company or any of its Affiliates has provided financial services, including without limitation wealth management, sales of tax credits, investment, banking, trust, insurance or other financial services provided by the Company or any of its Affiliates within the twenty-four month period prior to the termination of Executive's employment with the Company or (ii) to whom the Executive on behalf of the Company or any of its Affiliates had made a proposal to provide any of the above financial services at any time within twelve (12) months preceding the termination of Executive's employment with the Company.

General Provisions

Entire Agreement, Amendments. Other than the Enterprise Financial Services Corp Amended and Restated Executive Employment Agreement and The Stock Appreciation Right Agreements, the provisions hereof constitute the entire and only Agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, commitments, representations, understandings, or negotiations, oral or written, and all other communications relating to the subject matter hereof. No amendment or modification of any provision of this Agreement will be effective unless set forth in a document that purports to amend this Agreement and is executed by all parties hereto.

Acknowledgement. Executive acknowledges that Executive has read this entire Agreement and fully understands its terms and conditions; that Executive was advised to obtain legal counsel and/or representation to review this Agreement and that Executive has done so; that Executive may revoke this Agreement by written notice to Employer within seven (7) days after his last signature hereon; that no other representations have been made to Executive other than those contained herein; and that Executive enters into this Agreement of Executive’s own free will and choice with no undue influence, fraud, pressure, duress, or coercion by Employer.

Binding Effect; Third Party Beneficiaries. This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective heirs, legal representatives, successors, and assigns. Except as expressly set forth herein, this Agreement is not intended to confer any rights or remedies upon any other person or entity.

Assignment. Neither party shall sell, transfer, assign, nor subcontract any right or obligation hereunder except as expressly provided herein without the prior written consent of each other party. Any act in derogation of the foregoing shall be null and void.

Governing Law. The validity, construction, and performance of this Agreement shall be governed by and in accordance with the internal laws of the State of Missouri.

Waivers. No waiver by any party hereto of any condition or provision of this Agreement to be performed by another party shall be valid unless in writing, and no such valid waiver shall be deemed a waiver of any similar or dissimilar provisions or conditions contained in this Agreement at the same or at any prior or subsequent time.

Non-Disparagement. Executive agrees that he will not, at any time after the date hereof, make any statement or take or omit to take any action, the effect of which is to criticize or otherwise disparage in any way the Company or any of the other released parties. Executive further agrees that he will not interfere in any manner with the business of the Company or any of the other released parties.

Notice. All notices provided for in this Agreement shall be in writing and shall be given either (i) by actual delivery of the notice to the party entitled thereto or (ii) by depositing the same with the United States Postal Service, certified mail, return receipt requested, postage prepaid, to the address of the party entitled thereto. The notice shall be deemed to have been received in case (i) on the date of its actual receipt by the party entitled thereto and, in case (ii), two days after the date of its deposit with the United States Postal Service.

Severability. The terms and conditions of this Agreement are severable, and if any provision hereof is found to be in violation or contravention of law, such provision shall, to the extent so found, be deemed not to be a part of this Agreement, and the remainder of this Agreement shall remain in full force and effect.

Specific Performance. Executive agrees that the Company shall be entitled to obtain specific performance and may sue in any court of competent jurisdiction to enjoin any breach, threatened or actual, of the covenants and promises contained in that Section of this Agreement and shall be entitled; and that, in connection with any such litigation, the Company may also sue to obtain damages for default under or breach of the provision of any of said Section.

Costs and Expenses. If either party shall commence a proceeding against the other to enforce and/or recover damages for breach of this Agreement, the prevailing party in such proceeding shall be entitled to recover from the other party all reasonable costs, attorneys’ fees and expenses of enforcement and collection of any and all remedies and damages, or all reasonable costs, attorneys’ fees and expenses of defense, as the case may be.

Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

[The remainder of this page is blank. The next page is the signature page.]

COMPANY		EXECUTIVE
ENTERPRISE BANK & TRUST		FRANK SANFILIPPO
By:	/s/ Lorie White	By:	/s/ Frank Sanfilippo
Name:	Lorie White	Date:	July 15, 2016
Title:	SVP, Human Resources
Date:	July 19, 2016

EX-12.1

Exhibit 12.1

Enterprise Financial Services Corp

Statement Regarding Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividend Requirement (unaudited)

	Six Months Ended June 30,			Years ended December 31,
($ in thousands)	2016			2015			2014			2013			2012			2011
Earnings (1):
Income (loss) before income taxes	$	36,010		$	58,401		$	41,044		$	50,080		$	42,830		$	38,225
Add: Fixed charges from below	6,282			12,369			14,386			18,137			28,002			33,950
Earnings including interest expense on deposits (a)	$	42,292		$	70,770		$	55,430		$	68,217		$	70,832		$	72,175
Less: interest expense on deposits	(4,979		)	(10,412		)	(10,487		)	(11,142		)	(15,406		)	(21,658		)
Earnings excluding interest expense on deposits (b)	$	37,313		$	60,358		$	44,943		$	57,075		$	55,426		$	50,517
Fixed charges (1):
Interest on deposits	$	4,979		$	10,412		$	10,487		$	11,142		$	15,406		$	21,658
Interest on borrowings	1,303			1,957			3,899			6,995			7,761			8,497
TARP preferred stock dividends (pre-tax)	—			—			—			—			4,835			3,795
Fixed charges including interest on deposits (c)	$	6,282		$	12,369		$	14,386		$	18,137		$	28,002		$	33,950
Less: interest expense on deposits	(4,979		)	(10,412		)	(10,487		)	(11,142		)	(15,406		)	(21,658		)
Fixed charges excluding interest expense on deposits (d)	$	1,303		$	1,957		$	3,899		$	6,995		$	12,596		$	12,292
Ratio of earnings to combined fixed charges
Excluding interest on deposits (b/d) (2)	28.64x			30.85x			11.53x			8.16x			4.40x			4.11x
Including interest on deposits (a/c)	6.73x			5.72x			3.85x			3.76x			2.53x			2.13x
Ratio of earnings to combined fixed charges and preferred dividends:
Excluding interest on deposits (b/d) (2)	28.64x			30.85x			11.53x			8.16x			6.52x			5.50x
Including interest on deposits (a/c)	6.73x			5.72x			3.85x			3.76x			2.85x			2.27x

(1) As defined in Item 503(d) of Regulation S-K.

(2) The ratio of earnings to fixed charges and preferred dividends, excluding interest on deposits, is being provided as an additional measure to provide comparability to the ratios disclosed by all other issuers of debt securities.

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Peter F. Benoist, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Enterprise Financial Services Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:	/s/ Peter F. Benoist	Date:	July 29, 2016
Peter F. Benoist
Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Keene S. Turner, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Enterprise Financial Services Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:	/s/ Keene S. Turner	Date:	July 29, 2016
Keene S. Turner
Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Enterprise Financial Services Corp (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission (the “Report”), I, Peter F. Benoist, Chief Executive Officer of the Company, certify to the best of my knowledge and belief, pursuant to 18 U.S.C. § 1350, as enacted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Peter F. Benoist

Peter F. Benoist

Chief Executive Officer

July 29, 2016

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Enterprise Financial Services Corp (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission (the “Report”), I, Keene S. Turner, Chief Financial Officer of the Company, certify to the best of my knowledge and belief, pursuant to 18 U.S.C. § 1350, as enacted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Keene S. Turner

Keene S. Turner

Chief Financial Officer

July 29, 2016

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 25, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ENTERPRISE FINANCIAL SERVICES CORP
Entity Central Index Key	0001025835
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		20,018,101

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 50,370	$ 47,935
Federal funds sold	317	91
Interest-bearing deposits (including $1,870 and $1,320 pledged as collateral)	59,609	46,131
Total cash and cash equivalents	110,296	94,157
Interest-bearing deposits greater than 90 days	1,000	1,000
Securities available for sale	478,514	451,770
Securities held to maturity	42,514	43,714
Loans held for sale	9,669	6,598
Portfolio loans	2,883,909	2,750,737
Less: Allowance for loan losses	35,498	33,441
Portfolio loans, net	2,848,411	2,717,296
Purchased credit impaired loans, net of the allowance for loan losses ($8,551 and $10,175, respectively)	47,978	64,583
Total loans, net	2,896,389	2,781,879
Other real estate	4,901	8,366
Other investments, at cost	17,403	17,455
Fixed assets, net	14,512	14,842
Accrued interest receivable	8,123	8,399
State tax credits held for sale, including $4,774 and $5,941 carried at fair value, respectively	44,918	45,850
Goodwill	30,334	30,334
Intangible assets, net	2,589	3,075
Other assets	100,503	101,044
Total assets	3,761,665	3,608,483
Liabilities and Shareholders' Equity
Demand deposits	753,173	717,460
Interest-bearing transaction accounts	628,505	564,420
Money market accounts	1,019,304	1,053,662
Savings	105,224	92,861
Certificates of deposit:
Brokered	166,507	39,573
Other	355,523	316,615
Total deposits	3,028,236	2,784,591
Subordinated debentures	56,807	56,807
Federal Home Loan Bank advances	78,000	110,000
Other borrowings	200,362	270,326
Accrued interest payable	625	629
Other liabilities	26,006	35,301
Total liabilities	3,390,036	3,257,654
Shareholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	0	0
Common stock, $0.01 par value; 30,000,000 shares authorized; 20,234,235 and 20,093,119 shares issued, respectively	202	201
Treasury stock, at cost; 255,018 and 76,000 shares, respectively	(6,454)	(1,743)
Additional paid in capital	211,227	210,589
Retained earnings	161,137	141,564
Accumulated other comprehensive income	5,517	218
Total shareholders' equity	371,629	350,829
Total liabilities and shareholders' equity	$ 3,761,665	$ 3,608,483

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Collateral pledged	$ 1,870	$ 1,320
Allowance for loan losses on Portfolio loans, covered under FDIC loss share	8,551	10,175
State tax credits, held for sale, carried at fair value	$ 4,774	$ 5,941
Shareholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	20,234,235	20,093,119
Treasury stock, shares	255,018	76,000

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest income:
Interest and fees on loans	$ 34,183	$ 29,875	$ 66,791	$ 59,483
Interest on debt securities:
Taxable	2,397	2,117	4,784	4,258
Nontaxable	328	285	660	582
Interest on interest-bearing deposits	58	38	119	85
Dividends on equity securities	67	37	139	95
Total interest income	37,033	32,352	72,493	64,503
Interest expense:
Interest-bearing transaction accounts	329	279	635	556
Money market accounts	1,013	672	2,019	1,314
Savings accounts	63	54	123	104
Interest Expense, Time Deposits	1,183	1,594	2,202	3,185
Subordinated debentures	361	308	709	610
Federal Home Loan Bank advances	191	24	373	73
Notes payable and other borrowings	110	141	221	336
Total interest expense	3,250	3,072	6,282	6,178
Net interest income	33,783	29,280	66,211	58,325
Provision for portfolio loan losses	716	2,150	1,549	3,730
Provision reversal for purchased credit impaired loan losses	(336)	0	(409)	(3,270)
Net interest income after provision for loan losses	33,403	27,130	65,071	57,865
Noninterest income:
Wealth management revenue	1,644	1,778	3,306	3,518
Service charges on deposit accounts	2,188	1,998	4,231	3,854
Other service charges and fee income	952	840	1,820	1,593
Gain on sale of other real estate	706	9	828	29
Gain on state tax credits, net	153	74	671	748
Gain on sale of investment securities	0	0	0	23
Change in FDIC loss share receivable	0	(945)	0	(3,209)
Miscellaneous income	1,406	2,052	2,198	2,833
Total noninterest income	7,049	5,806	13,054	9,389
Noninterest expense:
Employee compensation and benefits	12,660	11,274	25,307	22,787
Occupancy	1,609	1,621	3,292	3,315
Data processing	1,187	1,127	2,291	2,157
FDIC and other insurance	738	665	1,461	1,391
Loan legal and other real estate expense	353	548	710	826
Professional fees	719	854	1,403	1,826
FHLB prepayment penalty	0	50	0	462
Other	4,087	3,319	7,651	6,644
Total noninterest expense	21,353	19,458	42,115	39,408
Income before income tax expense	19,099	13,478	36,010	27,846
Income tax expense	6,747	4,762	12,633	9,784
Net income	$ 12,352	$ 8,716	$ 23,377	$ 18,062
Earnings per common share
Basic (usd per share)	$ 0.62	$ 0.44	$ 1.17	$ 0.91
Diluted (usd per share)	$ 0.61	$ 0.43	$ 1.16	$ 0.90

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 12,352	$ 8,716	$ 23,377	$ 18,062
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investment securities arising during the period, net of income tax expense (benefit) for three months of $986 and $(1,322), and for six months of $3,290 and $(277), respectively	1,588	(2,130)	5,299	(418)
Less: Reclassification adjustment for realized gains on sale of securities available for sale included in net income, net of income tax expense for three months of $0 and $0, and for six months of $0 and $9, respectively	0	0	0	(14)
Total other comprehensive income (loss)	1,588	(2,130)	5,299	(432)
Total comprehensive income	$ 13,940	$ 6,586	$ 28,676	$ 17,630

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Statement of Income Captions [Line Items]
Unrealized (loss)/gain on investment securities available for sale arising during the period, tax	$ 986	$ (1,322)	$ 3,290	$ (277)
Reclassification adjustment for realized gains on sale of securities available for sale included in net income, tax		$ 0	$ 0	$ 9

XML

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Treasury Stock	Additional paid in capital	Retained earnings	Accumulated other comprehensive income (loss)	Parent [Member]
Balance at Dec. 31, 2014		$ 0	$ 199	$ (1,743)	$ 207,731	$ 108,373	$ 1,681	$ 316,241
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 18,062	0	0	0	0	18,062	0	18,062
Other comprehensive income	(432)	0	0	0	0	0	(432)	(432)
Cash dividends paid on common shares, $0.19 per share	2,252	0	0	0	0	(2,252)	0	(2,252)
Issuance under equity compensation plans, net	1,080	0	1	0	(1,081)	0	0	(1,080)
Share-based Compensation	1,738	0	0	0	1,738	0	0	1,738
Excess tax benefit related to equity compensation plans	(153)	0	0	0	153	0	0	153
Balance at Jun. 30, 2015		0	200	(1,743)	208,541	124,183	1,249	332,430
Balance at Dec. 31, 2015	350,829	0	201	(1,743)	210,589	141,564	218
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	23,377	0	0	0	0	23,377	0	23,377
Other comprehensive income	5,299	0	0	0	0	0	5,299	5,299
Cash dividends paid on common shares, $0.19 per share	3,804	0	0	0	0			(3,804)
Adjustments To Additional Paid In Capital, Repurchase Of Common Stock Warrants		0	0	(4,711)	0	0	0	(4,711)
Issuance under equity compensation plans, net	1,811	0	1	0	(1,812)	0	0
Share-based Compensation	1,626	0	0	0		0	0	1,626
Excess tax benefit related to equity compensation plans	(824)	0	0	0		0	0	824
Balance at Jun. 30, 2016	$ 371,629	$ 0	$ 202	$ (6,454)	$ 211,227	$ 161,137	$ 5,517	$ 371,629

XML

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash dividends paid on common shares, per share	$ 0.19	$ 0.1125
Issuance under equity compensation plans, shares	141,116	109,500
Stock Issued During Period, Shares, Conversion of Convertible Securities	0	0

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	$ (1,811)	$ (1,080)
Dividends, Common Stock, Cash	(3,804)	(2,252)
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	824	153
Payments for Repurchase of Common Stock	4,711	0
Cash flows from operating activities:
Net income	23,377	18,062
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	1,070	1,009
Provision for loan losses	1,140	460
Deferred income taxes	3,509	2,803
Net amortization of debt securities	1,513	1,661
Amortization of intangible assets	486	569
Gain on sale of investment securities	0	(23)
Mortgage loans originated for sale	(70,018)	(69,434)
Proceeds from mortgage loans sold	67,278	68,252
Gain on sale of other real estate	(828)	(29)
Gain on state tax credits, net	(671)	(748)
Excess tax benefit of share-based compensation	(824)	(153)
Share-based Compensation	1,626	1,738
Valuation adjustment on other real estate	1	82
Net accretion of loan discount and indemnification asset	(5,692)	(3,382)
Changes in:
Accrued interest receivable	276	36
Accrued interest payable	(4)	(23)
Other assets	(5,284)	(2,601)
Other liabilities	(9,295)	196
Net cash provided by (used in) operating activities	7,660	18,475
Cash flows from investing activities:
Net decrease (increase) in loans	(112,500)	(99,282)
Net cash proceeds received from FDIC loss share receivable	0	1,574
Proceeds from the sale of securities, available for sale	0	41,069
Proceeds from the paydown or maturity of securities, available for sale	29,398	25,813
Proceeds from the paydown or maturity of securities, held to maturity	1,145	1,078
Proceeds from the redemption of other investments	34,314	25,746
Proceeds from the sale of state tax credits held for sale	3,952	4,489
Proceeds from the sale of other real estate	6,355	3,723
Payments for the purchase/origination of:
Available for sale debt and equity securities	(49,012)	(74,069)
Other investments	(34,263)	(19,641)
State tax credits held for sale	(2,349)	(3,425)
Fixed assets	(740)	(983)
Net cash provided by (used in) investing activities	(123,700)	(93,908)
Cash flows from financing activities:
Net increase in noninterest-bearing deposit accounts	35,713	15,328
Net increase in interest-bearing deposit accounts	207,932	184,721
Proceeds from Federal Home Loan Bank advances	981,000	531,900
Repayments of Federal Home Loan Bank advances	(1,013,000)	(602,900)
Repayments of notes payable	0	(600)
Net decrease in other borrowings	(69,964)	(50,737)
Net cash provided by (used in) financing activities	132,179	74,533
Net increase (decrease) in cash and cash equivalents	16,139	(900)
Cash and cash equivalents, beginning of period	94,157	100,696
Cash and cash equivalents, end of period	110,296	99,796
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	6,286	6,201
Cash paid during the period for income taxes	19,124	6,517
Noncash transactions:
Transfer to other real estate owned in settlement of loans	2,683	5,998
Sales of other real estate financed	140	0
Retained Earnings [Member]
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	0	0
Dividends, Common Stock, Cash		2,252
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	0	0
Cash flows from operating activities:
Net income	23,377	18,062
Adjustments to reconcile net income to net cash provided by operating activities
Share-based Compensation	0	0
Parent [Member]
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures		1,080
Dividends, Common Stock, Cash	3,804	2,252
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	(824)	(153)
Cash flows from operating activities:
Net income	23,377	18,062
Adjustments to reconcile net income to net cash provided by operating activities
Share-based Compensation	1,626	1,738
Additional Paid-in Capital [Member]
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures	1,812	1,081
Dividends, Common Stock, Cash	0	0
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net		(153)
Cash flows from operating activities:
Net income	$ 0	0
Adjustments to reconcile net income to net cash provided by operating activities
Share-based Compensation		$ 1,738

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used by Enterprise Financial Services Corp (the "Company" or "Enterprise") in the preparation of the condensed consolidated financial statements are summarized below:

Business and Consolidation

Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers located in the St. Louis, Kansas City, and Phoenix metropolitan markets through its banking subsidiary, Enterprise Bank & Trust (the "Bank").

Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

Basis of Financial Statement Presentation

The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with the accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. In 2016, the Company changed its presentation of certificates of deposit on the Condensed Consolidated Balance Sheets to separate brokered deposit sources from other sources.  The corresponding prior period balances were reclassified to conform to the current year presentation. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

XML

Earnings Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per common share data is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Common shares outstanding include common stock and restricted stock awards where recipients have satisfied the vesting terms. Diluted earnings per common share gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method.

The following table presents a summary of per common share data and amounts for the periods indicated.

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2016		2015		2016		2015
Net income as reported	$	12,352	$	8,716	$	23,377	$	18,062
Weighted average common shares outstanding	20,003		19,978		20,002		19,958
Additional dilutive common stock equivalents	213		190		224		211
Weighted average diluted common shares outstanding	20,216		20,168		20,226		20,169
Basic earnings per common share:	$	0.62	$	0.44	$	1.17	$	0.91
Diluted earnings per common share:	$	0.61	$	0.43	$	1.16	$	0.90

For the three and six months ended June 30, 2016 and 2015, the amount of common stock equivalents excluded from the earnings per share calculations because their effect was anti-dilutive was zero, and 0.2 million common stock equivalents, respectively.

XML

Investments

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Investments

INVESTMENTS

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available for sale and held to maturity:

	June 30, 2016
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	98,064	$	1,622	$	—		$	99,686
Obligations of states and political subdivisions	37,468		1,804		(307		)	38,965
Agency mortgage-backed securities	333,549		6,587		(273		)	339,863
Total securities available for sale	$	469,081	$	10,013	$	(580	)	$	478,514
Held to maturity securities:
Obligations of states and political subdivisions	$	14,795	$	471	$	(3	)	$	15,263
Agency mortgage-backed securities	27,719		855		—			28,574
Total securities held to maturity	$	42,514	$	1,326	$	(3	)	$	43,837

	December 31, 2015
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	98,699	$	309	$	—		$	99,008
Obligations of states and political subdivisions	40,700		1,343		(342		)	41,701
Agency mortgage-backed securities	311,516		2,046		(2,501		)	311,061
Total securities available for sale	$	450,915	$	3,698	$	(2,843	)	$	451,770
Held to maturity securities:
Obligations of states and political subdivisions	$	14,831	$	63	$	(50	)	$	14,844
Agency mortgage-backed securities	28,883		—		(286		)	28,597
Total securities held to maturity	$	43,714	$	63	$	(336	)	$	43,441

At June 30, 2016, and December 31, 2015, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government-sponsored enterprises. Available for sale securities having a fair value of $336.8 million and $334.4 million at June 30, 2016, and December 31, 2015, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities at June 30, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 4 years.

	Available for sale				Held to maturity
(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	52,681	$	53,030	$	—	$	—
Due after one year through five years	70,311		72,722		7,365		7,569
Due after five years through ten years	9,009		9,607		7,430		7,694
Due after ten years	3,531		3,292		—		—
Agency mortgage-backed securities	333,549		339,863		27,719		28,574
	$	469,081	$	478,514	$	42,514	$	43,837

The following table represents a summary of investment securities that had an unrealized loss:

	June 30, 2016
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	—	$	—	$	3,141	$	310	$	3,141	$	310
Agency mortgage-backed securities	904		5		19,910		268		20,814		273
	$	904	$	5	$	23,051	$	578	$	23,955	$	583
	December 31, 2015
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	2,199	$	12	$	9,395	$	380	$	11,594	$	392
Agency mortgage-backed securities	189,229		2,050		21,020		737		210,249		2,787
	$	191,428	$	2,062	$	30,415	$	1,117	$	221,843	$	3,179

The unrealized losses at both June 30, 2016, and December 31, 2015, were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include among other considerations (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security, and (5) the intent to sell the security or whether it is more likely than not the Company would be required to sell the security before its anticipated recovery in market value. At June 30, 2016, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.

 The gross gains and gross losses realized from sales of available for sale investment securities were as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2016		2015		2016		2015
Gross gains realized	$	—	$	—	$	—	$	63
Gross losses realized	—		—		—		(40		)
Proceeds from sales	—		—		—		41,069

XML

Portfolio Loans

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Portfolio Loans

PORTFOLIO LOANS

Below is a summary of Portfolio loans by category at June 30, 2016 and December 31, 2015:

(in thousands)	June 30, 2016			December 31, 2015
Commercial and industrial	$	1,540,457		$	1,484,327
Real estate:
Commercial - investor owned	466,713			428,064
Commercial - owner occupied	332,639			342,959
Construction and land development	171,778			161,061
Residential	211,155			196,498
Total real estate loans	1,182,285			1,128,582
Consumer and other	161,417			137,537
Portfolio loans	2,884,159			2,750,446
Unearned loan fees, net	(250		)	291
Portfolio loans, including unearned loan fees	$	2,883,909		$	2,750,737

A summary of the year-to-date activity in the allowance for loan losses and the recorded investment in Portfolio loans by class and category based on impairment method through June 30, 2016, and at December 31, 2015, is as follows:

(in thousands)	Commercial and industrial			CRE - investor owned			CRE - owner occupied			Construction and land development			Residential real estate			Consumer and other			Total
Allowance for loan losses:
Balance at December 31, 2015	$	22,056		$	3,484		$	2,969		$	1,704		$	1,796		$	1,432		$	33,441
Provision (provision reversal) charged to expense	1,120			(116		)	80			(65		)	11			(197		)	833
Losses charged off	(68		)	—			—			—			—			(5		)	(73		)
Recoveries	53			7			68			6			34			4			172
Balance at March 31, 2016	$	23,161		$	3,375		$	3,117		$	1,645		$	1,841		$	1,234		$	34,373
Provision (provision reversal) charged to expense	302			(27		)	(541		)	(434		)	(80		)	1,496			716
Losses charged off	(157		)	—			—			—			—			(6		)	(163		)
Recoveries	502			8			15			8			36			3			572
Balance at June 30, 2016	$	23,808		$	3,356		$	2,591		$	1,219		$	1,797		$	2,727		$	35,498

(in thousands)	Commercial and industrial		CRE - investor owned		CRE - owner occupied		Construction and land development		Residential real estate		Consumer and other		Total
Balance June 30, 2016
Allowance for loan losses - Ending balance:
Individually evaluated for impairment	$	2,716	$	—	$	—	$	31	$	3	$	1,927	$	4,677
Collectively evaluated for impairment	21,092		3,356		2,591		1,188		1,794		800		30,821
Total	$	23,808	$	3,356	$	2,591	$	1,219	$	1,797	$	2,727	$	35,498
Loans - Ending balance:
Individually evaluated for impairment	$	5,019	$	248	$	1,704	$	2,576	$	670	$	4,571	$	14,788
Collectively evaluated for impairment	1,535,438		466,465		330,935		169,202		210,485		156,596		2,869,121
Total	$	1,540,457	$	466,713	$	332,639	$	171,778	$	211,155	$	161,167	$	2,883,909
Balance December 31, 2015
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	1,953	$	—	$	6	$	369	$	7	$	—	$	2,335
Collectively evaluated for impairment	20,103		3,484		2,963		1,335		1,789		1,432		31,106
Total	$	22,056	$	3,484	$	2,969	$	1,704	$	1,796	$	1,432	$	33,441
Loans - Ending balance:
Individually evaluated for impairment	$	4,514	$	921	$	1,962	$	2,800	$	681	$	—	$	10,878
Collectively evaluated for impairment	1,479,813		427,143		340,997		158,261		195,817		137,828		2,739,859
Total	$	1,484,327	$	428,064	$	342,959	$	161,061	$	196,498	$	137,828	$	2,750,737

A summary of Portfolio loans individually evaluated for impairment by category at June 30, 2016 and December 31, 2015, is as follows:

	June 30, 2016
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial and industrial	$	4,840	$	134	$	4,700	$	4,834	$	2,716	$	4,873
Real estate loans:
Commercial - investor owned	—		249		—		249		—		250
Commercial - owner occupied	—		—		—		—		—		—
Construction and land development	3,481		2,970		367		3,337		31		2,646
Residential	670		642		65		707		3		679
Consumer and other	4,571		—		4,580		4,580		1,927		4,628
Total	$	13,562	$	3,995	$	9,712	$	13,707	$	4,677	$	13,076

	December 31, 2015
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial and industrial	$	5,554	$	509	$	4,204	$	4,713	$	1,953	$	6,970
Real estate loans:
Commercial - investor owned	927		927		—		927		—		970
Commercial - owner occupied	329		85		113		198		6		301
Construction and land development	4,349		2,914		530		3,444		369		3,001
Residential	705		637		68		705		7		682
Consumer and other	—		—		—		—		—		—
Total	$	11,864	$	5,072	$	4,915	$	9,987	$	2,335	$	11,924

The following table presents details for past due and impaired loans:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2016		2015		2016		2015
Total interest income that would have been recognized under original terms	$	329	$	229	$	477	$	544
Total cash received and recognized as interest income on non-accrual loans	44		98		50		125
Total interest income recognized on impaired loans	25		14		31		27

There were no loans over 90 days past due and still accruing interest at June 30, 2016 or December 31, 2015.

The recorded investment in impaired Portfolio loans by category at June 30, 2016 and December 31, 2015, is as follows:

	June 30, 2016
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial and industrial	$	2,524	$	2,310	$	—	$	4,834
Real estate:
Commercial - investor owned	249		—		—		249
Commercial - owner occupied	—		—		—		—
Construction and land development	3,317		20		—		3,337
Residential	707		—		—		707
Consumer and other	4,580		—		—		4,580
Total	$	11,377	$	2,330	$	—	$	13,707

	December 31, 2015
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial and industrial	$	4,406	$	307	$	—	$	4,713
Real estate:
Commercial - investor owned	927		—		—		927
Commercial - owner occupied	198		—		—		198
Construction and land development	3,444		—		—		3,444
Residential	705		—		—		705
Consumer and other	—		—		—		—
Total	$	9,680	$	307	$	—	$	9,987

The recorded investment by category for the Portfolio loans that have been restructured during the three and six months ended June 30, 2016 and 2015, is as follows:

	Three months ended June 30, 2016					Three months ended June 30, 2015
(in thousands, except for number of loans)	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Commercial and industrial	1	$	2,300	$	2,300	—	$	—	$	—
Real estate:
Commercial - investor owned	—	—		—		—	—		—
Commercial - owner occupied	—	—		—		—	—		—
Construction and land development	1	20		20		—	—		—
Residential	—	—		—		—	—		—
Consumer and other	—	—		—		—	—		—
Total	2	$	2,320	$	2,320	—	$	—	$	—

	Six months ended June 30, 2016					Six months ended June 30, 2015
(in thousands, except for number of loans)	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Commercial and industrial	2	$	2,341	$	2,341	—	$	—	$	—
Real estate:
Commercial - investor owned	1	248		248		—	—		—
Commercial - owner occupied	—	—		—		—	—		—
Construction and land development	1	20		20		—	—		—
Residential	—	—		—		—	—		—
Consumer and other	—	—		—		—	—		—
Total	4	$	2,609	$	2,609	—	$	—	$	—

The restructured loans resulted from deferral of principal and extending the term to maturity. As of June 30, 2016, the Company had $1.2 million specific reserves allocated to loans that have been restructured. There were no Portfolio loans restructured that subsequently defaulted during the six months ended June 30, 2016 or 2015.

The aging of the recorded investment in past due Portfolio loans by portfolio class and category at June 30, 2016 and December 31, 2015 is shown below.

	June 30, 2016
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	83	$	2,407	$	2,490	$	1,537,967	$	1,540,457
Real estate:
Commercial - investor owned	—		—		—		466,713		466,713
Commercial - owner occupied	—		—		—		332,639		332,639
Construction and land development	367		2,189		2,556		169,222		171,778
Residential	10		605		615		210,540		211,155
Consumer and other	4		—		4		161,163		161,167
Total	$	464	$	5,201	$	5,665	$	2,878,244	$	2,883,909

	December 31, 2015
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	505	$	888	$	1,393	$	1,482,934	$	1,484,327
Real estate:
Commercial - investor owned	464		—		464		427,600		428,064
Commercial - owner occupied	94		184		278		342,681		342,959
Construction and land development	384		2,273		2,657		158,404		161,061
Residential	70		681		751		195,747		196,498
Consumer and other	20		—		20		137,808		137,828
Total	$	1,537	$	4,026	$	5,563	$	2,745,174	$	2,750,737

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

• Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry.

• Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow.

• Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow.

• Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating.

• Grade 7 – Watch credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support.

• Grade 8 – Substandard credits will include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted.

• Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual.

The recorded investment by risk category of the Portfolio loans by portfolio class and category at June 30, 2016, which is based upon the most recent analysis performed, and December 31, 2015 is as follows:

	June 30, 2016
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial and industrial	$	1,396,684	$	82,775	$	60,998	$	—	$	1,540,457
Real estate:
Commercial - investor owned	448,321		13,223		5,169		—		466,713
Commercial - owner occupied	302,411		27,144		3,084		—		332,639
Construction and land development	161,528		6,258		3,992		—		171,778
Residential	202,880		4,840		3,435		—		211,155
Consumer and other	154,500		714		5,953		—		161,167
Total	$	2,666,324	$	134,954	$	82,631	$	—	$	2,883,909

	December 31, 2015
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial and industrial	$	1,356,864	$	90,370	$	37,093	$	—	$	1,484,327
Real estate:
Commercial - investor owned	403,820		18,868		5,376		—		428,064
Commercial - owner occupied	314,791		24,727		3,441		—		342,959
Construction and land development	146,601		10,114		4,346		—		161,061
Residential	188,269		5,138		3,091		—		196,498
Consumer and other	131,060		721		6,047		—		137,828
Total	$	2,541,405	$	149,938	$	59,394	$	—	$	2,750,737

XML

Purchase Credit Impaired ("PCI") Loans

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Purchase Credit Impaired (PCI) Loans

PURCHASED CREDIT IMPAIRED ("PCI") LOANS

Below is a summary of PCI loans by category at June 30, 2016 and December 31, 2015:

	June 30, 2016			December 31, 2015
(in thousands)	Weighted- Average Risk Rating1	Recorded Investment PCI Loans		Weighted- Average Risk Rating1	Recorded Investment PCI Loans
Commercial and industrial	6.45	$	3,498	6.70	$	3,863
Real estate:
Commercial - investor owned	7.14	19,328		6.98	25,272
Commercial - owner occupied	6.35	13,068		6.30	19,414
Construction and land development	5.70	5,523		6.28	6,838
Residential	5.44	15,047		5.44	19,287
Total real estate loans		52,966			70,811
Consumer and other	1.60	65		1.89	84
Purchased credit impaired loans		$	56,529		$	74,758
1Risk ratings are based on the borrower's contractual obligation, which is not reflective of the purchase discount.

The aging of the recorded investment in past due PCI loans by portfolio class and category at June 30, 2016 and December 31, 2015 is shown below:

	June 30, 2016
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	22	$	—	$	22	$	3,476	$	3,498
Real estate:
Commercial - investor owned	—		—		—		19,328		19,328
Commercial - owner occupied	—		—		—		13,068		13,068
Construction and land development	—		—		—		5,523		5,523
Residential	372		144		516		14,531		15,047
Consumer and other	—		—		—		65		65
Total	$	394	$	144	$	538	$	55,991	$	56,529

	December 31, 2015
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	3,863	$	3,863
Real estate:
Commercial - investor owned	2,342		3,661		6,003		19,269		25,272
Commercial - owner occupied	731		—		731		18,683		19,414
Construction and land development	—		—		—		6,838		6,838
Residential	1,594		130		1,724		17,563		19,287
Consumer and other	4		—		4		80		84
Total	$	4,671	$	3,791	$	8,462	$	66,296	$	74,758

The following table is a rollforward of PCI loans, net of the allowance for loan losses, for the six months ended June 30, 2016 and 2015.

(in thousands)	Contractual Cashflows			Non-accretable Difference			Accretable Yield			Carrying Amount
Balance January 1, 2016	$	116,689		$	26,765		$	25,341		$	64,583
Principal reductions and interest payments	(11,768		)	—			—			(11,768		)
Accretion of loan discount	—			—			(3,431		)	3,431
Changes in contractual and expected cash flows due to remeasurement	6,144			1,522			(788		)	5,410
Reductions due to disposals	(21,663		)	(4,912		)	(3,073		)	(13,678		)
Balance June 30, 2016	$	89,402		$	23,375		$	18,049		$	47,978
Balance January 1, 2015	$	178,145		$	65,719		$	28,733		$	83,693
Principal reductions and interest payments	(13,214		)	—			—			(13,214		)
Accretion of loan discount	—			—			(5,989		)	5,989
Changes in contractual and expected cash flows due to remeasurement	(12,100		)	(26,187		)	5,304			8,783
Reductions due to disposals	(13,831		)	(2,794		)	(1,836		)	(9,201		)
Balance June 30, 2015	$	139,000		$	36,738		$	26,212		$	76,050

The accretable yield is recognized in interest income over the estimated life of the acquired loans using the effective yield method. Outstanding customer balances on PCI loans were $75.1 million and $98.6 million as of June 30, 2016, and December 31, 2015, respectively.

XML

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

The Company is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients and as part of its risk management activities. These instruments include interest rate swaps and option contracts and foreign exchange forward contracts. The Company does not enter into derivative financial instruments for trading purposes.

Risk Management Instruments. The Company enters into interest rate caps in order to economically hedge changes in fair value of State tax credits held for sale. See Note 8 – Fair Value Measurements for further discussion on the fair value of state tax credits. The notional amount of the derivative instruments used to manage risk was $3.5 million at June 30, 2016 and December 31, 2015, and the fair value was zero in both periods.

Client-Related Derivative Instruments. The Company enters into interest rate swaps to allow customers to hedge changes in fair value of certain loans while maintaining a variable rate loan on its own books. The Company also enters into foreign exchange forward contracts with clients, and enters into offsetting foreign exchange forward contracts with established financial institution counterparties. The table below summarizes the notional amounts and fair values of the client-related derivative instruments:

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Non-designated hedging instruments
Interest rate swap contracts	$	161,598	$	153,630	$	2,264	$	1,155	$	2,264	$	1,155

Changes in the fair value of client-related derivative instruments are recognized currently in operations. For the three and six months ended June 30, 2016 and 2015, the gains and losses offset each other due to the Company's hedging of the client swaps with other bank counterparties.

XML

Commitments

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

COMMITMENTS AND CONTINGENCIES

The Company issues financial instruments with off balance sheet risk in the normal course of the business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments.

The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At June 30, 2016, there were $0.1 million unadvanced commitments on impaired loans.

The contractual amounts of off-balance-sheet financial instruments as of June 30, 2016, and December 31, 2015, are as follows:

(in thousands)	June 30, 2016		December 31, 2015
Commitments to extend credit	$	1,067,353	$	1,140,028
Standby letters of credit	82,606		54,648

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments usually have fixed expiration dates or other termination clauses, may have significant usage restrictions, and may require payment of a fee. Of the total commitments to extend credit at June 30, 2016, and December 31, 2015, approximately $115 million and $94 million, respectively, represent fixed rate loan commitments. Since certain of the commitments may expire without being drawn upon or may be revoked, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, premises and equipment, and real estate. Other liabilities include $0.3 million for estimated losses attributable to the unadvanced commitments at June 30, 2016 and December 31, 2015.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are issued to support contractual obligations of the Company’s customers. The credit risk involved in issuing letters of credit is essentially the same as the risk involved in extending loans to customers. The approximate remaining term of standby letters of credit range from 1 month to 2 years 11 months at June 30, 2016.

Contingencies

The Company and its subsidiaries are, from time to time, parties to various legal proceedings arising out of their businesses. Management believes there are no such proceedings pending or threatened against the Company or its subsidiaries which, if determined adversely, would have a material adverse effect on the business, consolidated financial condition, results of operations or cash flows of the Company or any of its subsidiaries.

XML

Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Below is a description of certain assets and liabilities measured at fair value.

The following table summarizes financial instruments measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	June 30, 2016
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	99,686	$	—	$	99,686
Obligations of states and political subdivisions	—		35,872		3,093		38,965
Residential mortgage-backed securities	—		339,863		—		339,863
Total securities available for sale	$	—	$	475,421	$	3,093	$	478,514
State tax credits held for sale	—		—		4,774		4,774
Derivative financial instruments	—		2,264		—		2,264
Total assets	$	—	$	477,685	$	7,867	$	485,552
Liabilities
Derivative financial instruments	$	—	$	2,264	$	—	$	2,264
Total liabilities	$	—	$	2,264	$	—	$	2,264

	December 31, 2015
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	99,008	$	—	$	99,008
Obligations of states and political subdivisions	—		38,624		3,077		41,701
Residential mortgage-backed securities	—		311,061		—		311,061
Total securities available for sale	$	—	$	448,693	$	3,077	$	451,770
State tax credits held for sale	—		—		5,941		5,941
Derivative financial instruments	—		1,155		—		1,155
Total assets	$	—	$	449,848	$	9,018	$	458,866
Liabilities
Derivative financial instruments	$	—	$	1,155	$	—	$	1,155
Total liabilities	$	—	$	1,155	$	—	$	1,155

• Securities available for sale. Securities classified as available for sale are reported at fair value utilizing Level 2 and Level 3 inputs. Fair values for Level 2 securities are based upon dealer quotes, market spreads, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions at the security level. At June 30, 2016, Level 3 securities available for sale consist primarily of three Auction Rate Securities that are valued based on the securities' estimated cash flows, yields of comparable securities, and live trading levels.

• State tax credits held for sale. At June 30, 2016, of the $44.9 million of state tax credits held for sale on the condensed consolidated balance sheet, approximately $4.8 million were carried at fair value. The remaining $40.1 million of state tax credits were accounted for at cost.

The Company is not aware of an active market that exists for the 10-year streams of state tax credit financial instruments. However, the Company’s principal market for these tax credits consists of Missouri state residents who buy these credits and local and regional accounting firms who broker them. As such, the Company employed a discounted cash flow analysis (income approach) to determine the fair value.

The fair value measurement is calculated using an internal valuation model with market data including discounted cash flows based upon the terms and conditions of the tax credits. If the underlying project remains in compliance with the various federal and state rules governing the tax credit program, each project will generate about 10 years of tax credits. The inputs to the discounted cash flow calculation include: the amount of tax credits generated each year, the anticipated sale price of the tax credit, the timing of the sale and a discount rate. The discount rate is estimated using the LIBOR swap curve at a point equal to the remaining life in years of credits plus a 205 basis point spread. With the exception of the discount rate, the other inputs to the fair value calculation are observable and readily available. The discount rate is considered a Level 3 input because it is an “unobservable input” and is based on the Company’s assumptions. An increase in the discount rate utilized would generally result in a lower estimated fair value of the tax credits. Alternatively, a decrease in the discount rate utilized would generally result in a higher estimated fair value of the tax credits. Given the significance of this input to the fair value calculation, the state tax credit assets are reported as Level 3 assets.

• Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The Company obtains counterparty quotations to value its interest rate swaps and caps. In addition, the Company validates the counterparty quotations with third party valuation sources. Derivatives with negative fair values are included in Other liabilities in the consolidated balance sheets. Derivatives with positive fair value are included in Other assets in the consolidated balance sheets.

Level 3 financial instruments

The following table presents the changes in Level 3 financial instruments measured at fair value on a recurring basis as of June 30, 2016 and 2015.

• Purchases, sales, issuances and settlements. There were no Level 3 purchases during the quarter ended June 30, 2016 or 2015.

• Transfers in and/or out of Level 3. There were no Level 3 transfers during the quarter ended June 30, 2016 and 2015.

	Securities available for sale, at fair value
	Three months ended June 30,					Six months ended June 30,
(in thousands)	2016		2015			2016		2015
Beginning balance	$	3,085	$	3,071		$	3,077	$	3,059
Total gains:
Included in other comprehensive income	8		(1		)	16		11
Purchases, sales, issuances and settlements:
Purchases	—		—			—		—
Ending balance	$	3,093	$	3,070		$	3,093	$	3,070
Change in unrealized gains (losses) relating to assets still held at the reporting date	$	8	$	(1	)	$	16	$	11

	State tax credits held for sale
	Three months ended June 30,					Six months ended June 30,
(in thousands)	2016		2015			2016			2015
Beginning balance	$	4,733	$	10,286		$	5,941		$	11,689
Total gains:
Included in earnings	41		66			117			194
Purchases, sales, issuances and settlements:
Sales	—		(387		)	(1,284		)	(1,918		)
Ending balance	$	4,774	$	9,965		$	4,774		$	9,965
Change in unrealized gains (losses) relating to assets still held at the reporting date	$	41	$	(36	)	$	(264	)	$	(310	)

From time to time, the Company measures certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The following table presents financial instruments and non-financial assets measured at fair value on a non-recurring basis as of June 30, 2016.

	(1)		(1)		(1)		(1)
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total gains (losses) for the three months ended June 30, 2016			Total gains (losses) for the six months ended June 30, 2016
Impaired loans	$	—	$	—	$	—	$	—	$	(163	)	$	(236	)
Other real estate	—		—		—		—		—			(1		)
Total	$	—	$	—	$	—	$	—	$	(163	)	$	(237	)

(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date.

Impaired loans are reported at the fair value of the underlying collateral for collateral dependent loans. Fair values for impaired loans are obtained from current appraisals by qualified licensed appraisers or independent valuation specialists. Other real estate owned is adjusted to fair value upon foreclosure of the underlying loan. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value less costs to sell. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Certain state tax credits are reported at cost.

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at June 30, 2016 and December 31, 2015.

	June 30, 2016				December 31, 2015
(in thousands)	Carrying Amount		Estimated fair value		Carrying Amount		Estimated fair value
Balance sheet assets
Cash and due from banks	$	50,370	$	50,370	$	47,935	$	47,935
Federal funds sold	317		317		91		91
Interest-bearing deposits	60,609		60,609		47,131		47,131
Securities available for sale	478,514		478,514		451,770		451,770
Securities held to maturity	42,514		43,837		43,714		43,441
Other investments, at cost	17,403		17,403		17,455		17,455
Loans held for sale	9,669		9,669		6,598		6,598
Derivative financial instruments	2,264		2,264		1,155		1,155
Portfolio loans, net	2,896,389		2,902,083		2,781,879		2,782,704
State tax credits, held for sale	44,918		49,961		45,850		49,588
Accrued interest receivable	8,123		8,123		8,399		8,399
Balance sheet liabilities
Deposits	3,028,236		3,030,334		2,784,591		2,784,654
Subordinated debentures	56,807		35,771		56,807		35,432
Federal Home Loan Bank advances	78,000		78,000		110,000		109,994
Other borrowings	200,362		200,332		270,326		270,286
Derivative financial instruments	2,264		2,264		1,155		1,155
Accrued interest payable	625		625		629		629

For information regarding the methods and assumptions used to estimate the fair value of each class of financial instruments for which it is practical to estimate such value, refer to Note 19 – Fair Value Measurements in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already presented on the condensed consolidated balance sheets at fair value at June 30, 2016, and December 31, 2015.

	Estimated Fair Value Measurement at Reporting Date Using						Balance at June 30, 2016
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	43,837	$	—	$	43,837
Portfolio loans, net	—		—		2,902,083		2,902,083
State tax credits, held for sale	—		—		45,187		45,187
Financial Liabilities:
Deposits	2,506,206		—		524,128		3,030,334
Subordinated debentures	—		35,771		—		35,771
Federal Home Loan Bank advances	—		78,000		—		78,000
Other borrowings	—		200,332		—		200,332
	Estimated Fair Value Measurement at Reporting Date Using						Balance at December 31, 2015
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	43,441	$	—	$	43,441
Portfolio loans, net	—		—		2,782,704		2,782,704
State tax credits, held for sale	—		—		43,647		43,647
Financial Liabilities:
Deposits	2,428,403		—		356,251		2,784,654
Subordinated debentures	—		35,432		—		35,432
Federal Home Loan Bank advances	—		109,994		—		109,994
Other borrowings	—		270,286		—		270,286

XML

New Authoritative Accounting Guidance

6 Months Ended

Jun. 30, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Authoritative Accounting Guidance

NEW AUTHORITATIVE ACCOUNTING GUIDANCE

FASB ASU 2014-09, "Revenue from Contracts with Customers" In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance was originally effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 for public companies. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of this guidance to annual reporting periods beginning after December 15, 2017 for public companies, and permits early adoption on a limited basis. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements, nor decided upon the method of adoption. Entities have the option of using either a full retrospective or modified approach to adopt ASU 2014-09.

FASB ASU 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 requires equity investments to be measured at fair value through earnings, and eliminates the available-for-sale classification for equity securities with readily determinable fair values. For financial liabilities where the fair value option has been elected, changes in fair value due to instrument-specific credit risk must be recognized in other comprehensive income. When measuring the fair value of financial instruments at amortized cost, the exit price must be used for disclosure purposes. The ASU also requires that financial assets and liabilities be presented separately in the notes to the financial statements. This ASU becomes effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

FASB ASU 2016-02 "Leases (Topic 842)" In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which requires organizations that lease assets ("lessees") to recognize the assets and liabilities for the rights and obligations created by leases with terms of more than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee remains dependent on its classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease has not been significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The guidance becomes effective for periods beginning after December 15, 2018. Early adoption will be permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its consolidated balance sheets.

FASB ASU 2016-09 "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718)" which impacts accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 requires all excess tax benefits and tax deficiencies to be recognized in the income statement as income tax expense (or benefit.) The tax effects of exercised or vested awards must be treated as discrete items in the reporting period in which they occur, regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits will be classified with other income tax cash flows as an operating activity, and cash paid by an employer when withholding shares for tax liabilities should be classified as a financing activity. The guidance becomes effective for annual periods beginning after December 15, 2017, and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

FASB ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" In June 2016, the FASB issued ASU 2016-13, "Financial Instruments (Topic 326)" which changes the methodology for evaluating impairment of most financial instruments. The ASU replaces the currently used incurred loss model with a forward-looking expected loss model, which will generally result in a more timely recognition of losses. The guidance becomes effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

XML

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Business and Consolidation

Basis of Financial Statement Presentation

The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with the accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. In 2016, the Company changed its presentation of certificates of deposit on the Condensed Consolidated Balance Sheets to separate brokered deposit sources from other sources.  The corresponding prior period balances were reclassified to conform to the current year presentation. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Available-for-sale Securities

Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include among other considerations (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security, and (5) the intent to sell the security or whether it is more likely than not the Company would be required to sell the security before its anticipated recovery in market value. At June 30, 2016, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.

New Authoritative Accounting Guidance

FASB ASU 2014-09, "Revenue from Contracts with Customers" In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. The objective of ASU 2014-09 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. The new guidance was originally effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 for public companies. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of this guidance to annual reporting periods beginning after December 15, 2017 for public companies, and permits early adoption on a limited basis. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements, nor decided upon the method of adoption. Entities have the option of using either a full retrospective or modified approach to adopt ASU 2014-09.

FASB ASU 2016-01 "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 requires equity investments to be measured at fair value through earnings, and eliminates the available-for-sale classification for equity securities with readily determinable fair values. For financial liabilities where the fair value option has been elected, changes in fair value due to instrument-specific credit risk must be recognized in other comprehensive income. When measuring the fair value of financial instruments at amortized cost, the exit price must be used for disclosure purposes. The ASU also requires that financial assets and liabilities be presented separately in the notes to the financial statements. This ASU becomes effective for the Company in the first quarter of 2018. Early adoption is permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

FASB ASU 2016-02 "Leases (Topic 842)" In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which requires organizations that lease assets ("lessees") to recognize the assets and liabilities for the rights and obligations created by leases with terms of more than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee remains dependent on its classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease has not been significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The guidance becomes effective for periods beginning after December 15, 2018. Early adoption will be permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its consolidated balance sheets.

FASB ASU 2016-09 "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718)" which impacts accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 requires all excess tax benefits and tax deficiencies to be recognized in the income statement as income tax expense (or benefit.) The tax effects of exercised or vested awards must be treated as discrete items in the reporting period in which they occur, regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits will be classified with other income tax cash flows as an operating activity, and cash paid by an employer when withholding shares for tax liabilities should be classified as a financing activity. The guidance becomes effective for annual periods beginning after December 15, 2017, and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

FASB ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" In June 2016, the FASB issued ASU 2016-13, "Financial Instruments (Topic 326)" which changes the methodology for evaluating impairment of most financial instruments. The ASU replaces the currently used incurred loss model with a forward-looking expected loss model, which will generally result in a more timely recognition of losses. The guidance becomes effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements.

XML

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Summary of Per Common Share Data and Amounts

The following table presents a summary of per common share data and amounts for the periods indicated.

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2016		2015		2016		2015
Net income as reported	$	12,352	$	8,716	$	23,377	$	18,062
Weighted average common shares outstanding	20,003		19,978		20,002		19,958
Additional dilutive common stock equivalents	213		190		224		211
Weighted average diluted common shares outstanding	20,216		20,168		20,226		20,169
Basic earnings per common share:	$	0.62	$	0.44	$	1.17	$	0.91
Diluted earnings per common share:	$	0.61	$	0.43	$	1.16	$	0.90

XML

Investments (Tables)

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale and Held-to-Maturity Securities Reconciliation

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available for sale and held to maturity:

	June 30, 2016
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	98,064	$	1,622	$	—		$	99,686
Obligations of states and political subdivisions	37,468		1,804		(307		)	38,965
Agency mortgage-backed securities	333,549		6,587		(273		)	339,863
Total securities available for sale	$	469,081	$	10,013	$	(580	)	$	478,514
Held to maturity securities:
Obligations of states and political subdivisions	$	14,795	$	471	$	(3	)	$	15,263
Agency mortgage-backed securities	27,719		855		—			28,574
Total securities held to maturity	$	42,514	$	1,326	$	(3	)	$	43,837

	December 31, 2015
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	98,699	$	309	$	—		$	99,008
Obligations of states and political subdivisions	40,700		1,343		(342		)	41,701
Agency mortgage-backed securities	311,516		2,046		(2,501		)	311,061
Total securities available for sale	$	450,915	$	3,698	$	(2,843	)	$	451,770
Held to maturity securities:
Obligations of states and political subdivisions	$	14,831	$	63	$	(50	)	$	14,844
Agency mortgage-backed securities	28,883		—		(286		)	28,597
Total securities held to maturity	$	43,714	$	63	$	(336	)	$	43,441

Schedule of Available-for-sale and Held-to-Maturity Securities Reconciliation

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available for sale and held to maturity:

	June 30, 2016
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	98,064	$	1,622	$	—		$	99,686
Obligations of states and political subdivisions	37,468		1,804		(307		)	38,965
Agency mortgage-backed securities	333,549		6,587		(273		)	339,863
Total securities available for sale	$	469,081	$	10,013	$	(580	)	$	478,514
Held to maturity securities:
Obligations of states and political subdivisions	$	14,795	$	471	$	(3	)	$	15,263
Agency mortgage-backed securities	27,719		855		—			28,574
Total securities held to maturity	$	42,514	$	1,326	$	(3	)	$	43,837

	December 31, 2015
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	98,699	$	309	$	—		$	99,008
Obligations of states and political subdivisions	40,700		1,343		(342		)	41,701
Agency mortgage-backed securities	311,516		2,046		(2,501		)	311,061
Total securities available for sale	$	450,915	$	3,698	$	(2,843	)	$	451,770
Held to maturity securities:
Obligations of states and political subdivisions	$	14,831	$	63	$	(50	)	$	14,844
Agency mortgage-backed securities	28,883		—		(286		)	28,597
Total securities held to maturity	$	43,714	$	63	$	(336	)	$	43,441

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities at June 30, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 4 years.

	Available for sale				Held to maturity
(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	52,681	$	53,030	$	—	$	—
Due after one year through five years	70,311		72,722		7,365		7,569
Due after five years through ten years	9,009		9,607		7,430		7,694
Due after ten years	3,531		3,292		—		—
Agency mortgage-backed securities	333,549		339,863		27,719		28,574
	$	469,081	$	478,514	$	42,514	$	43,837

Schedule of Unrealized Loss on Investments

The following table represents a summary of investment securities that had an unrealized loss:

	June 30, 2016
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	—	$	—	$	3,141	$	310	$	3,141	$	310
Agency mortgage-backed securities	904		5		19,910		268		20,814		273
	$	904	$	5	$	23,051	$	578	$	23,955	$	583
	December 31, 2015
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	2,199	$	12	$	9,395	$	380	$	11,594	$	392
Agency mortgage-backed securities	189,229		2,050		21,020		737		210,249		2,787
	$	191,428	$	2,062	$	30,415	$	1,117	$	221,843	$	3,179

Schedule of Realized Gain (Loss)

The gross gains and gross losses realized from sales of available for sale investment securities were as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2016		2015		2016		2015
Gross gains realized	$	—	$	—	$	—	$	63
Gross losses realized	—		—		—		(40		)
Proceeds from sales	—		—		—		41,069

XML

Portfolio Loans (Tables) - Portfolio loans, net

6 Months Ended

Jun. 30, 2016

Non-covered Loans [Line Items]

Summary of Portfolio Loans by Category

Below is a summary of Portfolio loans by category at June 30, 2016 and December 31, 2015:

(in thousands)	June 30, 2016			December 31, 2015
Commercial and industrial	$	1,540,457		$	1,484,327
Real estate:
Commercial - investor owned	466,713			428,064
Commercial - owner occupied	332,639			342,959
Construction and land development	171,778			161,061
Residential	211,155			196,498
Total real estate loans	1,182,285			1,128,582
Consumer and other	161,417			137,537
Portfolio loans	2,884,159			2,750,446
Unearned loan fees, net	(250		)	291
Portfolio loans, including unearned loan fees	$	2,883,909		$	2,750,737

Summary of Allowance for Loan Losses and the Recorded Investment in Portfolio Loans by Class and Category Based on Impairment Method

(in thousands)	Commercial and industrial			CRE - investor owned			CRE - owner occupied			Construction and land development			Residential real estate			Consumer and other			Total
Allowance for loan losses:
Balance at December 31, 2015	$	22,056		$	3,484		$	2,969		$	1,704		$	1,796		$	1,432		$	33,441
Provision (provision reversal) charged to expense	1,120			(116		)	80			(65		)	11			(197		)	833
Losses charged off	(68		)	—			—			—			—			(5		)	(73		)
Recoveries	53			7			68			6			34			4			172
Balance at March 31, 2016	$	23,161		$	3,375		$	3,117		$	1,645		$	1,841		$	1,234		$	34,373
Provision (provision reversal) charged to expense	302			(27		)	(541		)	(434		)	(80		)	1,496			716
Losses charged off	(157		)	—			—			—			—			(6		)	(163		)
Recoveries	502			8			15			8			36			3			572
Balance at June 30, 2016	$	23,808		$	3,356		$	2,591		$	1,219		$	1,797		$	2,727		$	35,498

(in thousands)	Commercial and industrial		CRE - investor owned		CRE - owner occupied		Construction and land development		Residential real estate		Consumer and other		Total
Balance June 30, 2016
Allowance for loan losses - Ending balance:
Individually evaluated for impairment	$	2,716	$	—	$	—	$	31	$	3	$	1,927	$	4,677
Collectively evaluated for impairment	21,092		3,356		2,591		1,188		1,794		800		30,821
Total	$	23,808	$	3,356	$	2,591	$	1,219	$	1,797	$	2,727	$	35,498
Loans - Ending balance:
Individually evaluated for impairment	$	5,019	$	248	$	1,704	$	2,576	$	670	$	4,571	$	14,788
Collectively evaluated for impairment	1,535,438		466,465		330,935		169,202		210,485		156,596		2,869,121
Total	$	1,540,457	$	466,713	$	332,639	$	171,778	$	211,155	$	161,167	$	2,883,909
Balance December 31, 2015
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	1,953	$	—	$	6	$	369	$	7	$	—	$	2,335
Collectively evaluated for impairment	20,103		3,484		2,963		1,335		1,789		1,432		31,106
Total	$	22,056	$	3,484	$	2,969	$	1,704	$	1,796	$	1,432	$	33,441
Loans - Ending balance:
Individually evaluated for impairment	$	4,514	$	921	$	1,962	$	2,800	$	681	$	—	$	10,878
Collectively evaluated for impairment	1,479,813		427,143		340,997		158,261		195,817		137,828		2,739,859
Total	$	1,484,327	$	428,064	$	342,959	$	161,061	$	196,498	$	137,828	$	2,750,737

Summary of Portfolio Loans Individually Evaluated for Impairment and Recorded Investment in Impaired Non-Covered Loans by Category

	June 30, 2016
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial and industrial	$	2,524	$	2,310	$	—	$	4,834
Real estate:
Commercial - investor owned	249		—		—		249
Commercial - owner occupied	—		—		—		—
Construction and land development	3,317		20		—		3,337
Residential	707		—		—		707
Consumer and other	4,580		—		—		4,580
Total	$	11,377	$	2,330	$	—	$	13,707

	December 31, 2015
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial and industrial	$	4,406	$	307	$	—	$	4,713
Real estate:
Commercial - investor owned	927		—		—		927
Commercial - owner occupied	198		—		—		198
Construction and land development	3,444		—		—		3,444
Residential	705		—		—		705
Consumer and other	—		—		—		—
Total	$	9,680	$	307	$	—	$	9,987

	June 30, 2016
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial and industrial	$	4,840	$	134	$	4,700	$	4,834	$	2,716	$	4,873
Real estate loans:
Commercial - investor owned	—		249		—		249		—		250
Commercial - owner occupied	—		—		—		—		—		—
Construction and land development	3,481		2,970		367		3,337		31		2,646
Residential	670		642		65		707		3		679
Consumer and other	4,571		—		4,580		4,580		1,927		4,628
Total	$	13,562	$	3,995	$	9,712	$	13,707	$	4,677	$	13,076

	December 31, 2015
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial and industrial	$	5,554	$	509	$	4,204	$	4,713	$	1,953	$	6,970
Real estate loans:
Commercial - investor owned	927		927		—		927		—		970
Commercial - owner occupied	329		85		113		198		6		301
Construction and land development	4,349		2,914		530		3,444		369		3,001
Residential	705		637		68		705		7		682
Consumer and other	—		—		—		—		—		—
Total	$	11,864	$	5,072	$	4,915	$	9,987	$	2,335	$	11,924

The following table presents details for past due and impaired loans:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2016		2015		2016		2015
Total interest income that would have been recognized under original terms	$	329	$	229	$	477	$	544
Total cash received and recognized as interest income on non-accrual loans	44		98		50		125
Total interest income recognized on impaired loans	25		14		31		27

Summary of Recorded Investment by for Portfolio Loans Restructured

The recorded investment by category for the Portfolio loans that have been restructured during the three and six months ended June 30, 2016 and 2015, is as follows:

	Three months ended June 30, 2016					Three months ended June 30, 2015
(in thousands, except for number of loans)	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Commercial and industrial	1	$	2,300	$	2,300	—	$	—	$	—
Real estate:
Commercial - investor owned	—	—		—		—	—		—
Commercial - owner occupied	—	—		—		—	—		—
Construction and land development	1	20		20		—	—		—
Residential	—	—		—		—	—		—
Consumer and other	—	—		—		—	—		—
Total	2	$	2,320	$	2,320	—	$	—	$	—

	Six months ended June 30, 2016					Six months ended June 30, 2015
(in thousands, except for number of loans)	Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans	Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
Commercial and industrial	2	$	2,341	$	2,341	—	$	—	$	—
Real estate:
Commercial - investor owned	1	248		248		—	—		—
Commercial - owner occupied	—	—		—		—	—		—
Construction and land development	1	20		20		—	—		—
Residential	—	—		—		—	—		—
Consumer and other	—	—		—		—	—		—
Total	4	$	2,609	$	2,609	—	$	—	$	—

Summary of Recorded Investment by Category for Portfolio Loans Restructured and Subsequently Defaulted

The restructured loans resulted from deferral of principal and extending the term to maturity. As of June 30, 2016, the Company had $1.2 million specific reserves allocated to loans that have been restructured. There were no Portfolio loans restructured that subsequently defaulted during the six months ended June 30, 2016 or 2015.

Summary of Aging of Recorded Investment in Past Due Portfolio Loans by Portfolio Class and Category

The aging of the recorded investment in past due Portfolio loans by portfolio class and category at June 30, 2016 and December 31, 2015 is shown below.

	June 30, 2016
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	83	$	2,407	$	2,490	$	1,537,967	$	1,540,457
Real estate:
Commercial - investor owned	—		—		—		466,713		466,713
Commercial - owner occupied	—		—		—		332,639		332,639
Construction and land development	367		2,189		2,556		169,222		171,778
Residential	10		605		615		210,540		211,155
Consumer and other	4		—		4		161,163		161,167
Total	$	464	$	5,201	$	5,665	$	2,878,244	$	2,883,909

	December 31, 2015
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	505	$	888	$	1,393	$	1,482,934	$	1,484,327
Real estate:
Commercial - investor owned	464		—		464		427,600		428,064
Commercial - owner occupied	94		184		278		342,681		342,959
Construction and land development	384		2,273		2,657		158,404		161,061
Residential	70		681		751		195,747		196,498
Consumer and other	20		—		20		137,808		137,828
Total	$	1,537	$	4,026	$	5,563	$	2,745,174	$	2,750,737

Summary of Recorded Investment by Risk Category of Portfolio Loans by Portfolio Class and Category

The recorded investment by risk category of the Portfolio loans by portfolio class and category at June 30, 2016, which is based upon the most recent analysis performed, and December 31, 2015 is as follows:

	June 30, 2016
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial and industrial	$	1,396,684	$	82,775	$	60,998	$	—	$	1,540,457
Real estate:
Commercial - investor owned	448,321		13,223		5,169		—		466,713
Commercial - owner occupied	302,411		27,144		3,084		—		332,639
Construction and land development	161,528		6,258		3,992		—		171,778
Residential	202,880		4,840		3,435		—		211,155
Consumer and other	154,500		714		5,953		—		161,167
Total	$	2,666,324	$	134,954	$	82,631	$	—	$	2,883,909

	December 31, 2015
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial and industrial	$	1,356,864	$	90,370	$	37,093	$	—	$	1,484,327
Real estate:
Commercial - investor owned	403,820		18,868		5,376		—		428,064
Commercial - owner occupied	314,791		24,727		3,441		—		342,959
Construction and land development	146,601		10,114		4,346		—		161,061
Residential	188,269		5,138		3,091		—		196,498
Consumer and other	131,060		721		6,047		—		137,828
Total	$	2,541,405	$	149,938	$	59,394	$	—	$	2,750,737

XML

Purchase Credit Impaired ("PCI") Loans (Tables)

6 Months Ended

Jun. 30, 2016

Covered Loans [Line Items]

Rollforward of PCI Loans, Net of Allowance for Loan Losses

The following table is a rollforward of PCI loans, net of the allowance for loan losses, for the six months ended June 30, 2016 and 2015.

(in thousands)	Contractual Cashflows			Non-accretable Difference			Accretable Yield			Carrying Amount
Balance January 1, 2016	$	116,689		$	26,765		$	25,341		$	64,583
Principal reductions and interest payments	(11,768		)	—			—			(11,768		)
Accretion of loan discount	—			—			(3,431		)	3,431
Changes in contractual and expected cash flows due to remeasurement	6,144			1,522			(788		)	5,410
Reductions due to disposals	(21,663		)	(4,912		)	(3,073		)	(13,678		)
Balance June 30, 2016	$	89,402		$	23,375		$	18,049		$	47,978
Balance January 1, 2015	$	178,145		$	65,719		$	28,733		$	83,693
Principal reductions and interest payments	(13,214		)	—			—			(13,214		)
Accretion of loan discount	—			—			(5,989		)	5,989
Changes in contractual and expected cash flows due to remeasurement	(12,100		)	(26,187		)	5,304			8,783
Reductions due to disposals	(13,831		)	(2,794		)	(1,836		)	(9,201		)
Balance June 30, 2015	$	139,000		$	36,738		$	26,212		$	76,050

Covered Loans

Covered Loans [Line Items]

Summary of PCI Loans by Category

Below is a summary of PCI loans by category at June 30, 2016 and December 31, 2015:

	June 30, 2016			December 31, 2015
(in thousands)	Weighted- Average Risk Rating1	Recorded Investment PCI Loans		Weighted- Average Risk Rating1	Recorded Investment PCI Loans
Commercial and industrial	6.45	$	3,498	6.70	$	3,863
Real estate:
Commercial - investor owned	7.14	19,328		6.98	25,272
Commercial - owner occupied	6.35	13,068		6.30	19,414
Construction and land development	5.70	5,523		6.28	6,838
Residential	5.44	15,047		5.44	19,287
Total real estate loans		52,966			70,811
Consumer and other	1.60	65		1.89	84
Purchased credit impaired loans		$	56,529		$	74,758
1Risk ratings are based on the borrower's contractual obligation, which is not reflective of the purchase discount.

Summary of Aging of Recorded Investment in Past Due PCI Loans by Portfolio Class and Category

The aging of the recorded investment in past due PCI loans by portfolio class and category at June 30, 2016 and December 31, 2015 is shown below:

	June 30, 2016
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	22	$	—	$	22	$	3,476	$	3,498
Real estate:
Commercial - investor owned	—		—		—		19,328		19,328
Commercial - owner occupied	—		—		—		13,068		13,068
Construction and land development	—		—		—		5,523		5,523
Residential	372		144		516		14,531		15,047
Consumer and other	—		—		—		65		65
Total	$	394	$	144	$	538	$	55,991	$	56,529

	December 31, 2015
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	3,863	$	3,863
Real estate:
Commercial - investor owned	2,342		3,661		6,003		19,269		25,272
Commercial - owner occupied	731		—		731		18,683		19,414
Construction and land development	—		—		—		6,838		6,838
Residential	1,594		130		1,724		17,563		19,287
Consumer and other	4		—		4		80		84
Total	$	4,671	$	3,791	$	8,462	$	66,296	$	74,758

Summary of FDIC Loss Share Receivable

.

XML

Derivative Financial Instruments (Tables) - Client-Related

6 Months Ended

Jun. 30, 2016

Derivative [Line Items]

Schedule of Notional Amounts and Fair Values of Derivative Instruments and Client-Related Derivative Instruments

The table below summarizes the notional amounts and fair values of the client-related derivative instruments:

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Non-designated hedging instruments
Interest rate swap contracts	$	161,598	$	153,630	$	2,264	$	1,155	$	2,264	$	1,155

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

For the three and six months ended June 30, 2016 and 2015, the gains and losses offset each other due to the Company's hedging of the client swaps with other bank counterparties.

XML

Commitments (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Commitments

The contractual amounts of off-balance-sheet financial instruments as of June 30, 2016, and December 31, 2015, are as follows:

(in thousands)	June 30, 2016		December 31, 2015
Commitments to extend credit	$	1,067,353	$	1,140,028
Standby letters of credit	82,606		54,648

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Measured at Fair Value on a Recurring Basis

The following table summarizes financial instruments measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	June 30, 2016
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	99,686	$	—	$	99,686
Obligations of states and political subdivisions	—		35,872		3,093		38,965
Residential mortgage-backed securities	—		339,863		—		339,863
Total securities available for sale	$	—	$	475,421	$	3,093	$	478,514
State tax credits held for sale	—		—		4,774		4,774
Derivative financial instruments	—		2,264		—		2,264
Total assets	$	—	$	477,685	$	7,867	$	485,552
Liabilities
Derivative financial instruments	$	—	$	2,264	$	—	$	2,264
Total liabilities	$	—	$	2,264	$	—	$	2,264

	December 31, 2015
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	99,008	$	—	$	99,008
Obligations of states and political subdivisions	—		38,624		3,077		41,701
Residential mortgage-backed securities	—		311,061		—		311,061
Total securities available for sale	$	—	$	448,693	$	3,077	$	451,770
State tax credits held for sale	—		—		5,941		5,941
Derivative financial instruments	—		1,155		—		1,155
Total assets	$	—	$	449,848	$	9,018	$	458,866
Liabilities
Derivative financial instruments	$	—	$	1,155	$	—	$	1,155
Total liabilities	$	—	$	1,155	$	—	$	1,155

Schedule of Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis

The following table presents the changes in Level 3 financial instruments measured at fair value on a recurring basis as of June 30, 2016 and 2015.

• Purchases, sales, issuances and settlements. There were no Level 3 purchases during the quarter ended June 30, 2016 or 2015.

• Transfers in and/or out of Level 3. There were no Level 3 transfers during the quarter ended June 30, 2016 and 2015.

	Securities available for sale, at fair value
	Three months ended June 30,					Six months ended June 30,
(in thousands)	2016		2015			2016		2015
Beginning balance	$	3,085	$	3,071		$	3,077	$	3,059
Total gains:
Included in other comprehensive income	8		(1		)	16		11
Purchases, sales, issuances and settlements:
Purchases	—		—			—		—
Ending balance	$	3,093	$	3,070		$	3,093	$	3,070
Change in unrealized gains (losses) relating to assets still held at the reporting date	$	8	$	(1	)	$	16	$	11

	State tax credits held for sale
	Three months ended June 30,					Six months ended June 30,
(in thousands)	2016		2015			2016			2015
Beginning balance	$	4,733	$	10,286		$	5,941		$	11,689
Total gains:
Included in earnings	41		66			117			194
Purchases, sales, issuances and settlements:
Sales	—		(387		)	(1,284		)	(1,918		)
Ending balance	$	4,774	$	9,965		$	4,774		$	9,965
Change in unrealized gains (losses) relating to assets still held at the reporting date	$	41	$	(36	)	$	(264	)	$	(310	)

Summary of Financial Instruments and Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis

The following table presents financial instruments and non-financial assets measured at fair value on a non-recurring basis as of June 30, 2016.

	(1)		(1)		(1)		(1)
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total gains (losses) for the three months ended June 30, 2016			Total gains (losses) for the six months ended June 30, 2016
Impaired loans	$	—	$	—	$	—	$	—	$	(163	)	$	(236	)
Other real estate	—		—		—		—		—			(1		)
Total	$	—	$	—	$	—	$	—	$	(163	)	$	(237	)

(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date.

Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at June 30, 2016 and December 31, 2015.

	June 30, 2016				December 31, 2015
(in thousands)	Carrying Amount		Estimated fair value		Carrying Amount		Estimated fair value
Balance sheet assets
Cash and due from banks	$	50,370	$	50,370	$	47,935	$	47,935
Federal funds sold	317		317		91		91
Interest-bearing deposits	60,609		60,609		47,131		47,131
Securities available for sale	478,514		478,514		451,770		451,770
Securities held to maturity	42,514		43,837		43,714		43,441
Other investments, at cost	17,403		17,403		17,455		17,455
Loans held for sale	9,669		9,669		6,598		6,598
Derivative financial instruments	2,264		2,264		1,155		1,155
Portfolio loans, net	2,896,389		2,902,083		2,781,879		2,782,704
State tax credits, held for sale	44,918		49,961		45,850		49,588
Accrued interest receivable	8,123		8,123		8,399		8,399
Balance sheet liabilities
Deposits	3,028,236		3,030,334		2,784,591		2,784,654
Subordinated debentures	56,807		35,771		56,807		35,432
Federal Home Loan Bank advances	78,000		78,000		110,000		109,994
Other borrowings	200,362		200,332		270,326		270,286
Derivative financial instruments	2,264		2,264		1,155		1,155
Accrued interest payable	625		625		629		629

Schedule of Estimated Fair Values of Financial Instruments Not Recorded at Fair Value on Balance Sheet

The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already presented on the condensed consolidated balance sheets at fair value at June 30, 2016, and December 31, 2015.

	Estimated Fair Value Measurement at Reporting Date Using						Balance at June 30, 2016
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	43,837	$	—	$	43,837
Portfolio loans, net	—		—		2,902,083		2,902,083
State tax credits, held for sale	—		—		45,187		45,187
Financial Liabilities:
Deposits	2,506,206		—		524,128		3,030,334
Subordinated debentures	—		35,771		—		35,771
Federal Home Loan Bank advances	—		78,000		—		78,000
Other borrowings	—		200,332		—		200,332
	Estimated Fair Value Measurement at Reporting Date Using						Balance at December 31, 2015
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	43,441	$	—	$	43,441
Portfolio loans, net	—		—		2,782,704		2,782,704
State tax credits, held for sale	—		—		43,647		43,647
Financial Liabilities:
Deposits	2,428,403		—		356,251		2,784,654
Subordinated debentures	—		35,432		—		35,432
Federal Home Loan Bank advances	—		109,994		—		109,994
Other borrowings	—		270,286		—		270,286

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share
Net income as reported	$ 12,352	$ 8,716	$ 23,377	$ 18,062
Impact of assumed conversions
Weighted average common shares outstanding (in shares)	20,003,000	19,978,000	20,002,000	19,958,000
Additional dilutive common stock equivalents (in shares)	213,000	190,000	224,000	211,000
Weighted average diluted common shares outstanding (in shares)	20,216,000	20,168,000	20,226,000	20,169,000
Basic earnings per common share (in dollars per share)	$ 0.62	$ 0.44	$ 1.17	$ 0.91
Diluted earnings per common share (in dollars per share)	$ 0.61	$ 0.43	$ 1.16	$ 0.90
Common stock equivalents excluded from earnings per share calculations due to anti-dilutive effect (in shares)	2,900	174,040	2,900	277,581
Convertible Debt Securities
Debt Instrument, Interest Rate, Stated Percentage [Abstract]
Convertible trust preferred securities, interest rate, stated percentage	9.00%	9.00%	9.00%	9.00%

XML

Investments - Schedule of Available-for-sale and Held-to-Maturity Securities Reconciliation (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 42,514	$ 43,714
Gross Unrealized Gains	1,326	63
Gross Unrealized Losses	(3)	(336)
Fair Value	43,837	43,441
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	469,081	450,915
Gross Unrealized Gains	10,013	3,698
Gross Unrealized Losses	(580)	(2,843)
Fair Value	478,514	451,770
Obligations of U.S. Government-sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	98,064	98,699
Gross Unrealized Gains	1,622	309
Gross Unrealized Losses	0	0
Fair Value	99,686	99,008
Obligations of states and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	37,468	40,700
Gross Unrealized Gains	1,804	1,343
Gross Unrealized Losses	(307)	(342)
Fair Value	38,965	41,701
Agency mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	333,549	311,516
Gross Unrealized Gains	6,587	2,046
Gross Unrealized Losses	(273)	(2,501)
Fair Value	339,863	311,061
Obligations of states and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	14,795	14,831
Gross Unrealized Gains	471	63
Gross Unrealized Losses	(3)	(50)
Fair Value	15,263	14,844
Agency mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	27,719	28,883
Gross Unrealized Gains	855	0
Gross Unrealized Losses	0	(286)
Fair Value	$ 28,574	$ 28,597

XML

Investments - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available for sale, Amortized Cost
Due in one year or less	$ 52,681
Due after one year through five years	70,311
Due after five years through ten years	9,009
Due after ten years	3,531
Agency mortgage-backed securities	333,549
Amortized Cost	469,081	$ 450,915
Available for sale, Estimated Fair Value
Due in one year or less	53,030
Due after one year through five years	72,722
Due after five years through ten years	9,607
Due after ten years	3,292
Agency mortgage-backed securities	339,863
Available for sale, fair value	478,514	451,770
Held to maturity, Amortized Cost
Due in one year or less	0
Due after one year through five years	7,365
Due after five years through ten years	7,430
Due after ten years	0
Agency mortgage-backed securities	27,719
Amortized Cost	42,514	43,714
Held to maturity, Estimated Fair Value
Due in one year or less	0
Due after one year through five years	7,569
Due after five years through ten years	7,694
Due after ten years	0
Agency mortgage-backed securities	28,574
Held to maturity, fair value	$ 43,837	$ 43,441

XML

Investments - Schedule of Unrealized Loss on Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, fair value	$ 904	$ 191,428
Less than 12 months, unrealized losses	5	2,062
12 months or more, fair value	23,051	30,415
12 months or more, unrealized losses	578	1,117
Total, fair value	23,955	221,843
Total, unrealized losses	583	3,179
Obligations of states and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, fair value	0	2,199
Less than 12 months, unrealized losses	0	12
12 months or more, fair value	3,141	9,395
12 months or more, unrealized losses	310	380
Total, fair value	3,141	11,594
Total, unrealized losses	310	392
Agency mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, fair value	904	189,229
Less than 12 months, unrealized losses	5	2,050
12 months or more, fair value	19,910	21,020
12 months or more, unrealized losses	268	737
Total, fair value	20,814	210,249
Total, unrealized losses	$ 273	$ 2,787

XML

Investments - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Gross gains realized	$ 0	$ 0	$ 0	$ 63
Gross losses realized	0	0	0	(40)
Proceeds from sales	$ 0	$ 0	$ 0	$ 41,069

XML

Investments - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Other investments, at cost	$ 17,403	$ 17,455
Maximum percentage of shareholders' equity security holdings held of one issuer	10.00%
Available-for-sale securities pledged as collateral, fair value	$ 336,800	$ 334,400
Mortgage-backed securities, weighted average life	4 years

XML

Portfolio Loans - Summary of Portfolio Loans by Category (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio loans, including unearned loan fees	$ 2,883,909		$ 2,750,737
Portfolio loans, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan, Lease, and Other Losses	716	$ 833
Portfolio loans	2,884,159		2,750,446
Unearned loan fees, net	(250)		291
Portfolio loans, including unearned loan fees	2,883,909		2,750,737
Portfolio loans, net | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan, Lease, and Other Losses	434	(65)
Portfolio loans	171,778		161,061
Portfolio loans, net | Commercial - investor owned
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan, Lease, and Other Losses	27	(116)
Portfolio loans	466,713		428,064
Portfolio loans, net | Commercial - owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan, Lease, and Other Losses	541	80
Portfolio loans	332,639		342,959
Portfolio loans, net | Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan, Lease, and Other Losses	(80)	11
Portfolio loans	211,155		196,498
Portfolio loans, net | Total real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio loans	1,182,285		1,128,582
Portfolio loans, net | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan, Lease, and Other Losses	302	1,120
Portfolio loans	1,540,457		1,484,327
Portfolio loans, net | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for Loan, Lease, and Other Losses	1,496	$ (197)
Portfolio loans	161,417		137,537
Portfolio loans, including unearned loan fees	$ 161,167		$ 137,828

XML

Portfolio Loans - Summary of Allowance for Loan Losses by Portfolio Class and Category (Details) - Portfolio loans, net - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Summary of Activity in the Allowance for Loan Losses by Portfolio Class and Category Based on Impairment Method [Line Items]
Individually evaluated for impairment	$ 4,677		$ 2,335
Allowance for Loan Losses [Roll Forward]
Balance at December 31, 2015	34,373	$ 33,441
Provision (provision reversal) charged to expense	716	833
Losses charged off	(163)	(73)
Recoveries	572	172
Balance at March 31, 2016	35,498	34,373
Commercial and industrial
Summary of Activity in the Allowance for Loan Losses by Portfolio Class and Category Based on Impairment Method [Line Items]
Individually evaluated for impairment	2,716		1,953
Allowance for Loan Losses [Roll Forward]
Balance at December 31, 2015	23,161	22,056
Provision (provision reversal) charged to expense	302	1,120
Losses charged off	(157)	(68)
Recoveries	502	53
Balance at March 31, 2016	23,808	23,161
CRE - owner occupied
Summary of Activity in the Allowance for Loan Losses by Portfolio Class and Category Based on Impairment Method [Line Items]
Individually evaluated for impairment	0		6
Allowance for Loan Losses [Roll Forward]
Balance at December 31, 2015	3,117	2,969
Provision (provision reversal) charged to expense	541	80
Losses charged off	0	0
Recoveries	15	68
Balance at March 31, 2016	2,591	3,117
Commercial Real Estate Investor Owned
Summary of Activity in the Allowance for Loan Losses by Portfolio Class and Category Based on Impairment Method [Line Items]
Individually evaluated for impairment	0		0
Allowance for Loan Losses [Roll Forward]
Balance at December 31, 2015	3,375	3,484
Provision (provision reversal) charged to expense	27	(116)
Losses charged off	0	0
Recoveries	8	7
Balance at March 31, 2016	3,356	3,375
Construction and land development
Summary of Activity in the Allowance for Loan Losses by Portfolio Class and Category Based on Impairment Method [Line Items]
Individually evaluated for impairment	31		369
Allowance for Loan Losses [Roll Forward]
Balance at December 31, 2015	1,645	1,704
Provision (provision reversal) charged to expense	434	(65)
Losses charged off	0	0
Recoveries	8	6
Balance at March 31, 2016	1,219	1,645
Residential real estate
Summary of Activity in the Allowance for Loan Losses by Portfolio Class and Category Based on Impairment Method [Line Items]
Individually evaluated for impairment	3		7
Allowance for Loan Losses [Roll Forward]
Balance at December 31, 2015	1,841	1,796
Provision (provision reversal) charged to expense	(80)	11
Losses charged off	0	0
Recoveries	36	34
Balance at March 31, 2016	1,797	1,841
Consumer and other
Summary of Activity in the Allowance for Loan Losses by Portfolio Class and Category Based on Impairment Method [Line Items]
Individually evaluated for impairment	1,927		$ 0
Allowance for Loan Losses [Roll Forward]
Balance at December 31, 2015	1,234	1,432
Provision (provision reversal) charged to expense	1,496	(197)
Losses charged off	(6)	(5)
Recoveries	3	4
Balance at March 31, 2016	$ 2,727	$ 1,234

XML

Portfolio Loans - Summary of Recorded Investment in Portfolio Loans by Class and Category Based on Impairment Method (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Loans - Ending balance:
Loans and Leases Receivable, Gross	$ 2,883,909		$ 2,750,737
Portfolio loans, net
Balance June 30, 2016
Individually evaluated for impairment	4,677		2,335
Collectively evaluated for impairment	30,821		31,106
Total	35,498	$ 34,373	33,441
Loans - Ending balance:
Individually evaluated for impairment	14,788		10,878
Collectively evaluated for impairment	2,869,121		2,739,859
Total	2,884,159		2,750,446
Loans and Leases Receivable, Gross	2,883,909		2,750,737
Portfolio loans, net | Commercial and industrial
Balance June 30, 2016
Individually evaluated for impairment	2,716		1,953
Collectively evaluated for impairment	21,092		20,103
Total	23,808	23,161	22,056
Loans - Ending balance:
Individually evaluated for impairment	5,019		4,514
Collectively evaluated for impairment	1,535,438		1,479,813
Total	1,540,457		1,484,327
Portfolio loans, net | Commercial Real Estate Investor Owned
Balance June 30, 2016
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	3,356		3,484
Total	3,356	3,375	3,484
Loans - Ending balance:
Individually evaluated for impairment	248		921
Collectively evaluated for impairment	466,465		427,143
Total	466,713		428,064
Portfolio loans, net | CRE - owner occupied
Balance June 30, 2016
Individually evaluated for impairment	0		6
Collectively evaluated for impairment	2,591		2,963
Total	2,591	3,117	2,969
Loans - Ending balance:
Individually evaluated for impairment	1,704		1,962
Collectively evaluated for impairment	330,935		340,997
Total	332,639		342,959
Portfolio loans, net | Construction and land development
Balance June 30, 2016
Individually evaluated for impairment	31		369
Collectively evaluated for impairment	1,188		1,335
Total	1,219	1,645	1,704
Loans - Ending balance:
Individually evaluated for impairment	2,576		2,800
Collectively evaluated for impairment	169,202		158,261
Total	171,778		161,061
Portfolio loans, net | Residential real estate
Balance June 30, 2016
Individually evaluated for impairment	3		7
Collectively evaluated for impairment	1,794		1,789
Total	1,797	1,841	1,796
Loans - Ending balance:
Individually evaluated for impairment	670		681
Collectively evaluated for impairment	210,485		195,817
Total	211,155		196,498
Portfolio loans, net | Consumer and other
Balance June 30, 2016
Individually evaluated for impairment	1,927		0
Collectively evaluated for impairment	800		1,432
Total	2,727	$ 1,234	1,432
Loans - Ending balance:
Individually evaluated for impairment	4,571		0
Collectively evaluated for impairment	156,596		137,828
Total	161,417		137,537
Loans and Leases Receivable, Gross	$ 161,167		$ 137,828

XML

Portfolio Loans - Summary of Portfolio Loans Individually Evaluated for Impairment by Category (Details) - Portfolio loans, net - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 13,562	$ 11,864
Recorded Investment With No Allowance	3,995	5,072
Recorded Investment With Allowance	9,712	4,915
Total Recorded Investment	13,707	9,987
Related Allowance	4,677	2,335
Average Recorded Investment	13,076	11,924
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	4,840	5,554
Recorded Investment With No Allowance	134	509
Recorded Investment With Allowance	4,700	4,204
Total Recorded Investment	4,834	4,713
Related Allowance	2,716	1,953
Average Recorded Investment	4,873	6,970
Commercial - owner occupied
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	0	329
Recorded Investment With No Allowance	0	85
Recorded Investment With Allowance	0	113
Total Recorded Investment	0	198
Related Allowance	0	6
Average Recorded Investment	0	301
Commercial - investor owned
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	0	927
Recorded Investment With No Allowance	249	927
Recorded Investment With Allowance	0	0
Total Recorded Investment	249	927
Related Allowance	0	0
Average Recorded Investment	250	970
Construction and land development
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	3,481	4,349
Recorded Investment With No Allowance	2,970	2,914
Recorded Investment With Allowance	367	530
Total Recorded Investment	3,337	3,444
Related Allowance	31	369
Average Recorded Investment	2,646	3,001
Residential real estate
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	670	705
Recorded Investment With No Allowance	642	637
Recorded Investment With Allowance	65	68
Total Recorded Investment	707	705
Related Allowance	3	7
Average Recorded Investment	679	682
Consumer and other
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	4,571	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	4,580	0
Total Recorded Investment	4,580	0
Related Allowance	1,927	0
Average Recorded Investment	$ 4,628	$ 0

XML

Portfolio Loans - Summary of Past Due and Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Receivables [Abstract]
Total interest income that would have been recognized under original terms	$ 329	$ 229	$ 477	$ 544
Total cash received and recognized as interest income on non-accrual loans	44	98	50	125
Total interest income recognized on impaired loans	$ 25	$ 14	$ 31	$ 27

XML

Portfolio Loans - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($) loan	Jun. 30, 2015 USD ($) loan	Jun. 30, 2016 USD ($) loan	Jun. 30, 2015 USD ($) loan	Dec. 31, 2015 USD ($) loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans over 90 days past due and still accruing interest | loan	0		0		0
Unadvanced commitments on impaired loans	$ 100,000		$ 100,000		$ 0
Specific reserves on restructured loans	1,196,000.000		$ 1,196,000.000
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan			0	0
Unadvanced Commitment on Impaired Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated losses attributable to unadvanced commitments on impaired loans	300,000		$ 300,000		300,000
Non-Covered Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-Modification Outstanding Recorded Balance	$ 2,320,000	$ 0	$ 2,609,000	$ 0
Financing Receivable, Modifications, Number of Contracts | loan	2	0	4	0
Financing Receivable, Gross	$ 2,884,159,000		$ 2,884,159,000		2,750,446,000
Non-Covered Loans | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Post-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0
Financing Receivable, Modifications, Number of Contracts | loan	0	0	0	0
Financing Receivable, Gross	$ 161,417,000		$ 161,417,000		$ 137,537,000

XML

Portfolio Loans - Summary of Recorded Investment in Impaired Portfolio Loans by Category (Details) - Non-Covered Loans - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	$ 11,377,000	$ 9,680,000
Restructured	2,330,000	307,000
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0	0
Total Recorded Investment	13,707,000	9,987,000
Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	2,524,000	4,406,000
Restructured	2,310,000	307,000
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0.000	0.000
Total Recorded Investment	4,834,000	4,713,000
Commercial - investor owned
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	249,000	927,000
Restructured	0	0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0	0
Total Recorded Investment	249,000	927,000
Commercial - owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	198,000
Restructured	0	0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0	0
Total Recorded Investment	0	198,000
Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	3,317,000	3,444,000
Restructured	20,000	0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0	0
Total Recorded Investment	3,337,000	3,444,000
Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	707,000	705,000
Restructured	0	0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0	0
Total Recorded Investment	707,000	705,000
Consumer and other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	4,580,000	0
Restructured	0	0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0	0
Total Recorded Investment	$ 4,580,000	$ 0

XML

Portfolio Loans - Summary of Recorded Investment by Category for Portfolio Loans Restructured (Details) - Non-Covered Loans $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($) loan	Jun. 30, 2015 USD ($) loan	Jun. 30, 2016 USD ($) loan	Jun. 30, 2015 USD ($) loan
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	2	0	4	0
Pre-Modification Outstanding Recorded Balance	$ 2,320	$ 0	$ 2,609	$ 0
Post-Modification Outstanding Recorded Balance	$ 2,320	$ 0	$ 2,609	$ 0
Commercial and industrial
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	1	0	2	0
Pre-Modification Outstanding Recorded Balance	$ 2,300	$ 0	$ 2,341	$ 0
Post-Modification Outstanding Recorded Balance	$ 2,300	$ 0	$ 2,341	$ 0
CRE - owner occupied
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	0	0	0
Pre-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0
Post-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0
Commercial Real Estate Investor Owned
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	0	1	0
Pre-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 248	$ 0
Post-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 248	$ 0
Construction and land development
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	1	0	1	0
Pre-Modification Outstanding Recorded Balance	$ 20	$ 0	$ 20	$ 0
Post-Modification Outstanding Recorded Balance	$ 20	$ 0	$ 20	$ 0
Residential real estate
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	0	0	0
Pre-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0
Post-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0
Consumer and other
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	0	0	0
Pre-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0
Post-Modification Outstanding Recorded Balance	$ 0	$ 0	$ 0	$ 0

XML

Portfolio Loans - Summary of Recorded Investment by Category for Portfolio Loans Restructured and Subsequently Defaulted (Details) - Non-Covered Loans - loan	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Schedule of Financing Receivables, Troubled Debt Restructurings - Suibsequent Defaults [Line Items]
Financing Receivable, Modifications, Number of Contracts	2	0	4	0
Commercial and industrial
Schedule of Financing Receivables, Troubled Debt Restructurings - Suibsequent Defaults [Line Items]
Financing Receivable, Modifications, Number of Contracts	1	0	2	0
CRE - owner occupied
Schedule of Financing Receivables, Troubled Debt Restructurings - Suibsequent Defaults [Line Items]
Financing Receivable, Modifications, Number of Contracts	0	0	0	0
Commercial Real Estate Investor Owned
Schedule of Financing Receivables, Troubled Debt Restructurings - Suibsequent Defaults [Line Items]
Financing Receivable, Modifications, Number of Contracts	0	0	1	0
Construction and land development
Schedule of Financing Receivables, Troubled Debt Restructurings - Suibsequent Defaults [Line Items]
Financing Receivable, Modifications, Number of Contracts	1	0	1	0
Consumer and other
Schedule of Financing Receivables, Troubled Debt Restructurings - Suibsequent Defaults [Line Items]
Financing Receivable, Modifications, Number of Contracts	0	0	0	0

XML

Portfolio Loans - Summary of Aging of Recorded Investment in Past Due Portfolio Loans by Portfolio Class and Category (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans and Leases Receivable, Gross	$ 2,883,909	$ 2,750,737
Non-Covered Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	464	1,537
90 or More Days Past Due	5,201	4,026
Total Past Due	5,665	5,563
Current	2,878,244	2,745,174
Loans and Leases Receivable, Gross	2,883,909	2,750,737
Total	2,884,159	2,750,446
Non-Covered Loans | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	83	505
90 or More Days Past Due	2,407	888
Total Past Due	2,490	1,393
Current	1,537,967	1,482,934
Total	1,540,457	1,484,327
Non-Covered Loans | CRE - owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	94
90 or More Days Past Due	0	184
Total Past Due	0	278
Current	332,639	342,681
Total	332,639	342,959
Non-Covered Loans | Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	464
90 or More Days Past Due	0	0
Total Past Due	0	464
Current	466,713	427,600
Total	466,713	428,064
Non-Covered Loans | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	367	384
90 or More Days Past Due	2,189	2,273
Total Past Due	2,556	2,657
Current	169,222	158,404
Total	171,778	161,061
Non-Covered Loans | Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	10	70
90 or More Days Past Due	605	681
Total Past Due	615	751
Current	210,540	195,747
Total	211,155	196,498
Non-Covered Loans | Consumer and other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	4	20
90 or More Days Past Due	0	0
Total Past Due	4	20
Current	161,163	137,808
Loans and Leases Receivable, Gross	161,167	137,828
Total	$ 161,417	$ 137,537

XML

Portfolio Loans - Summary of Recorded Investment by Risk Category of Portfolio Loans by Portfolio Class and Category (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable, Gross	$ 2,883,909	$ 2,750,737
Non-Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	2,884,159	2,750,446
Loans and Leases Receivable, Gross	2,883,909	2,750,737
Non-Covered Loans | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	1,540,457	1,484,327
Non-Covered Loans | CRE - owner occupied
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	332,639	342,959
Non-Covered Loans | Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	466,713	428,064
Non-Covered Loans | Construction and land development
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	171,778	161,061
Non-Covered Loans | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	211,155	196,498
Non-Covered Loans | Consumer and other
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	161,417	137,537
Loans and Leases Receivable, Gross	161,167	137,828
Pass (1-6) | Non-Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	2,666,324	2,541,405
Pass (1-6) | Non-Covered Loans | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	1,396,684	1,356,864
Pass (1-6) | Non-Covered Loans | CRE - owner occupied
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	302,411	314,791
Pass (1-6) | Non-Covered Loans | Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	448,321	403,820
Pass (1-6) | Non-Covered Loans | Construction and land development
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	161,528	146,601
Pass (1-6) | Non-Covered Loans | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	202,880	188,269
Pass (1-6) | Non-Covered Loans | Consumer and other
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	154,500	131,060
Watch (7) | Non-Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	134,954	149,938
Watch (7) | Non-Covered Loans | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	82,775	90,370
Watch (7) | Non-Covered Loans | CRE - owner occupied
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	27,144	24,727
Watch (7) | Non-Covered Loans | Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	13,223	18,868
Watch (7) | Non-Covered Loans | Construction and land development
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	6,258	10,114
Watch (7) | Non-Covered Loans | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	4,840	5,138
Watch (7) | Non-Covered Loans | Consumer and other
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	714	721
Substandard (8) | Non-Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	82,631	59,394
Substandard (8) | Non-Covered Loans | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	60,998	37,093
Substandard (8) | Non-Covered Loans | CRE - owner occupied
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	3,084	3,441
Substandard (8) | Non-Covered Loans | Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	5,169	5,376
Substandard (8) | Non-Covered Loans | Construction and land development
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	3,992	4,346
Substandard (8) | Non-Covered Loans | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	3,435	3,091
Substandard (8) | Non-Covered Loans | Consumer and other
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	5,953	6,047
Doubtful (9) | Non-Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	0	0
Doubtful (9) | Non-Covered Loans | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	0	0
Doubtful (9) | Non-Covered Loans | CRE - owner occupied
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	0	0
Doubtful (9) | Non-Covered Loans | Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	0	0
Doubtful (9) | Non-Covered Loans | Construction and land development
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	0	0
Doubtful (9) | Non-Covered Loans | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	0	0
Doubtful (9) | Non-Covered Loans | Consumer and other
Financing Receivable, Recorded Investment [Line Items]
Portfolio loans	$ 0	$ 0

XML

Purchase Credit Impaired ("PCI") Loans - Summary of PCI Loans by Category (Details) - Covered Loans $ in Thousands	Jun. 30, 2016 USD ($) rating	Dec. 31, 2015 USD ($) rating
Covered Loans [Line Items]
Recorded Investment PCI Loans	$ 56,529	$ 74,758
Construction and land development
Covered Loans [Line Items]
Weighted- Average Risk Rating1 | rating	5.70	6.28
Recorded Investment PCI Loans	$ 5,523	$ 6,838
Commercial Real Estate Investor Owned
Covered Loans [Line Items]
Weighted- Average Risk Rating1 | rating	7.14	6.98
Recorded Investment PCI Loans	$ 19,328	$ 25,272
CRE - owner occupied
Covered Loans [Line Items]
Weighted- Average Risk Rating1 | rating	6.35	6.30
Recorded Investment PCI Loans	$ 13,068	$ 19,414
Residential real estate
Covered Loans [Line Items]
Weighted- Average Risk Rating1 | rating	5.44	5.44
Recorded Investment PCI Loans	$ 15,047	$ 19,287
Total real estate loans
Covered Loans [Line Items]
Recorded Investment PCI Loans	$ 52,966	$ 70,811
Commercial and industrial
Covered Loans [Line Items]
Weighted- Average Risk Rating1 | rating	6.45	6.70
Recorded Investment PCI Loans	$ 3,498	$ 3,863
Consumer and other
Covered Loans [Line Items]
Weighted- Average Risk Rating1 | rating	1.60	1.89
Recorded Investment PCI Loans	$ 65	$ 84

XML

Purchase Credit Impaired ("PCI") Loans - Summary of Aging of Recorded Investment in Past Due PCI Loans by Portfolio Class and Category (Details) - Covered Loans - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	$ 394	$ 4,671
90 or More Days Past Due	144	3,791
Total Past Due	538	8,462
Current	55,991	66,296
Total	56,529	74,758
Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	22	0
90 or More Days Past Due	0	0
Total Past Due	22	0
Current	3,476	3,863
Total	3,498	3,863
CRE - owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	731
90 or More Days Past Due	0	0
Total Past Due	0	731
Current	13,068	18,683
Total	13,068	19,414
Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	2,342
90 or More Days Past Due	0	3,661
Total Past Due	0	6,003
Current	19,328	19,269
Total	19,328	25,272
Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	0
90 or More Days Past Due	0	0
Total Past Due	0	0
Current	5,523	6,838
Total	5,523	6,838
Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	372	1,594
90 or More Days Past Due	144	130
Total Past Due	516	1,724
Current	14,531	17,563
Total	15,047	19,287
Consumer and other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	4
90 or More Days Past Due	0	0
Total Past Due	0	4
Current	65	80
Total	$ 65	$ 84

XML

Purchase Credit Impaired ("PCI") Loans - Rollforward of PCI Loans, Net of Allowance for Loan Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 64,583	$ 83,693
Principal reductions and interest payments	(11,768)	(13,214)
Accretion of loan discount	3,431	5,989
Changes in contractual and expected cash flows due to remeasurement	(5,410)	(8,783)
Reductions due to disposals	(13,678)	(9,201)
Balance at end of period	47,978	76,050
Contractual Cashflows
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	116,689	178,145
Principal reductions and interest payments	(11,768)	(13,214)
Accretion of loan discount	0	0
Changes in contractual and expected cash flows due to remeasurement	(6,144)	(12,100)
Reductions due to disposals	(21,663)	(13,831)
Balance at end of period	89,402	139,000
Non-accretable Difference
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	26,765	65,719
Principal reductions and interest payments	0	0
Accretion of loan discount	0	0
Changes in contractual and expected cash flows due to remeasurement	(1,522)	(26,187)
Reductions due to disposals	(4,912)	(2,794)
Balance at end of period	23,375	36,738
Accretable Yield
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	25,341	28,733
Principal reductions and interest payments	0	0
Accretion of loan discount	3,431	5,989
Changes in contractual and expected cash flows due to remeasurement	(788)	(5,304)
Reductions due to disposals	(3,073)	(1,836)
Balance at end of period	$ 18,049	$ 26,212

XML

Purchase Credit Impaired ("PCI") Loans - Summary of FDIC Loss Share Receivable (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
FDIC Indemnification Asset [Roll Forward]
Cash received from the FDIC for covered assets	$ 0	$ (1,574)

XML

Purchase Credit Impaired ("PCI") Loans - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
PCI loans outstanding	$ 75.1	$ 98.6

XML

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Risk Management [Member]
Summary of Derivative Instruments [Abstract]
Notional Amount	$ 3,500	$ 3,500
Derivative, Fair Value, Net	0	0
Non-designated hedging instruments | Client-Related | Interest rate swap contracts
Summary of Derivative Instruments [Abstract]
Notional Amount	161,598	153,630
Non-designated hedging instruments | Client-Related | Other Assets | Interest rate swap contracts
Summary of Derivative Instruments [Abstract]
Asset derivatives (other assets), fair value	2,264	1,155
Non-designated hedging instruments | Client-Related | Other Liabilities | Interest rate swap contracts
Summary of Derivative Instruments [Abstract]
Liability derivatives (other liabilities), fair value	$ 2,264	$ 1,155

XML

Commitments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Schedule of Commitments [Line Items]
Unadvanced commitments on impaired loans	$ 100	$ 0
Commitments to extend credit
Schedule of Commitments [Line Items]
Off-balance sheet financial instruments, contractual amounts	1,067,353	1,140,028
Standby letters of credit
Schedule of Commitments [Line Items]
Off-balance sheet financial instruments, contractual amounts	$ 82,606	54,648
Standby letters of credit | Maximum
Schedule of Commitments [Line Items]
Remaining term	2 years 11 months
Standby letters of credit | Minimum
Schedule of Commitments [Line Items]
Remaining term	1 month
Unadvanced Commitment on Impaired Loan
Schedule of Commitments [Line Items]
Estimated losses attributable to unadvanced commitments on impaired loans	$ 300	300
Fixed Rate Loan Commitment | Commitments to extend credit
Schedule of Commitments [Line Items]
Off-balance sheet financial instruments, contractual amounts	$ 114,700	$ 93,900

XML

Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Securities available for sale	$ 478,514	$ 451,770
State tax credits held for sale	4,774	5,941
Portion at Other than Fair Value, Fair Value Disclosure
Assets
State tax credits held for sale	40,100
Estimate of Fair Value Measurement [Member]
Assets
Securities available for sale	478,514	451,770
State tax credits held for sale	49,961	49,588
Derivative financial instruments	2,264	1,155
Liabilities
Derivative financial instruments	2,264	1,155
Obligations of U.S. Government-sponsored enterprises
Assets
Securities available for sale	99,686	99,008
Obligations of states and political subdivisions
Assets
Securities available for sale	38,965	41,701
Residential mortgage-backed securities
Assets
Securities available for sale	339,863	311,061
Recurring basis | Estimate of Fair Value Measurement [Member]
Assets
Securities available for sale	478,514	451,770
State tax credits held for sale	4,774	5,941
Derivative financial instruments	2,264	1,155
Total assets	485,552	458,866
Liabilities
Derivative financial instruments		1,155
Total liabilities	2,264	1,155
Recurring basis | Obligations of U.S. Government-sponsored enterprises | Estimate of Fair Value Measurement [Member]
Assets
Securities available for sale	99,686	99,008
Recurring basis | Obligations of states and political subdivisions | Estimate of Fair Value Measurement [Member]
Assets
Securities available for sale	38,965	41,701
Recurring basis | Residential mortgage-backed securities | Estimate of Fair Value Measurement [Member]
Assets
Securities available for sale	339,863	311,061
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Securities available for sale	0	0
State tax credits held for sale	0	0
Derivative financial instruments	0	0
Total assets	0	0
Liabilities
Derivative financial instruments	0	0
Total liabilities	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U.S. Government-sponsored enterprises
Assets
Securities available for sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions
Assets
Securities available for sale	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities
Assets
Securities available for sale	0	0
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Securities available for sale	475,421	448,693
State tax credits held for sale	0	0
Derivative financial instruments	2,264	1,155
Total assets	477,685	449,848
Liabilities
Derivative financial instruments	2,264	1,155
Total liabilities	2,264	1,155
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. Government-sponsored enterprises
Assets
Securities available for sale	99,686	99,008
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions
Assets
Securities available for sale	35,872	38,624
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities
Assets
Securities available for sale	339,863	311,061
Recurring basis | Significant Unobservable Inputs (Level 3)
Assets
Securities available for sale	3,093	3,077
State tax credits held for sale	4,774	5,941
Derivative financial instruments	0	0
Total assets	7,867	9,018
Liabilities
Derivative financial instruments	0	0
Total liabilities	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government-sponsored enterprises
Assets
Securities available for sale	0	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions
Assets
Securities available for sale	3,093	3,077
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities
Assets
Securities available for sale	$ 0	$ 0

XML

Fair Value Measurements - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($) security	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) security	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State tax credits held for sale, including $4,774 and $5,941 carried at fair value, respectively	$ 44,918		$ 44,918		$ 45,850
State tax credits, held for sale, carried at fair value	4,774		$ 4,774		5,941
State tax credit term			10 years
Years of tax credits generated			10 years
Recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State tax credits held for sale, including $4,774 and $5,941 carried at fair value, respectively	44,900		$ 44,900
Recurring basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State tax credits, held for sale, carried at fair value	$ 4,774		$ 4,774		5,941
Auction Rate Securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of available-for-sale securities | security	3		3
Portion at Other than Fair Value, Fair Value Disclosure
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State tax credits, held for sale, carried at fair value	$ 40,100		$ 40,100
Estimated fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State tax credits, held for sale, carried at fair value	49,961		49,961		49,588
Estimated fair value | Recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State tax credits, held for sale, carried at fair value	4,774		4,774		$ 5,941
State tax credits held for sale, at fair value | Recurring basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized gains (losses) relating to assets still held at the reporting date	$ 41	$ 36	$ (264)	$ 310
LIBOR | LIBOR Swap Curve [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate basis spread on variable rate	205.00%		205.00%
LIBOR Swap Curve [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate basis point spread			205

XML

Fair Value Measurements - Schedule of Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - Level 3 - Recurring basis - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Securities available for sale, at fair value
Level 3 Financial Instruments Measured at Fair Value
Beginning balance	$ 3,085	$ 3,071	$ 3,077	$ 3,059
Total gains:
Included in other comprehensive income	8	(1)	16	11
Purchases, sales, issuances and settlements:
Purchases	0	0	0	0
Ending balance	3,093	3,070	3,093	3,070
Change in unrealized gains (losses) relating to assets still held at the reporting date	(8)	1	(16)	(11)
State tax credits held for sale, at fair value
Level 3 Financial Instruments Measured at Fair Value
Beginning balance	4,733	10,286	5,941	11,689
Total gains:
Total gains:	41	66	117	194
Purchases, sales, issuances and settlements:
Sales	0	(387)	(1,284)	(1,918)
Ending balance	4,774	9,965	4,774	9,965
Change in unrealized gains (losses) relating to assets still held at the reporting date	$ 41	$ 36	$ (264)	$ 310

XML

Fair Value Measurements - Summary of Financial Instruments and Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total (losses) gains for the year	$ (163)	$ (237)
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total (losses) gains for the year	(163)	(236)
Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total (losses) gains for the year	0	(1)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Significant Other Observable Inputs (Level 2) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Significant Other Observable Inputs (Level 2) | Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Significant Unobservable Inputs (Level 3) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Significant Unobservable Inputs (Level 3) | Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate	0	0
Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Estimate of Fair Value Measurement [Member] | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Estimate of Fair Value Measurement [Member] | Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate	$ 0	$ 0

XML

Fair Value Measurements - Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Balance sheet assets
Securities available for sale	$ 478,514	$ 451,770
Securities held to maturity	42,514	43,714
State tax credits held for sale	4,774	5,941
Carrying Amount
Balance sheet assets
Cash and due from banks	50,370	47,935
Federal funds sold	317	91
Interest-bearing deposits	60,609	47,131
Securities available for sale	478,514	451,770
Securities held to maturity	42,514	43,714
Other investments, at cost	17,403	17,455
Loans held for sale	9,669	6,598
Derivative financial instruments	2,264	1,155
Portfolio loans, net	2,896,389	2,781,879
State tax credits held for sale	44,918	45,850
Accrued interest receivable	8,123	8,399
Balance sheet liabilities
Deposits	3,028,236	2,784,591
Subordinated debentures	56,807	56,807
Federal Home Loan Bank advances	78,000	110,000
Other borrowings	200,362	270,326
Derivative financial instruments	2,264	1,155
Accrued interest payable	625	629
Estimated fair value
Balance sheet assets
Cash and due from banks	50,370	47,935
Federal funds sold	317	91
Interest-bearing deposits	60,609	47,131
Securities available for sale	478,514	451,770
Securities held to maturity	43,837	43,441
Other investments, at cost	17,403	17,455
Loans held for sale	9,669	6,598
Derivative financial instruments	2,264	1,155
Portfolio loans, net	2,902,083	2,782,704
State tax credits held for sale	49,961	49,588
Accrued interest receivable	8,123	8,399
Balance sheet liabilities
Deposits	3,030,334	2,784,654
Subordinated debentures	35,771	35,432
Federal Home Loan Bank advances	78,000	109,994
Other borrowings	200,332	270,286
Derivative financial instruments	2,264	1,155
Accrued interest payable	$ 625	$ 629

XML

Fair Value Measurements - Schedule of Estimated Fair Values of Financial Instruments Not Recorded at Fair Value on Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Estimated fair value | Securities held to maturity
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	$ 43,837	$ 43,441
Estimated fair value | Portfolio loans, net
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	2,902,083	2,782,704
Estimated fair value | State tax credits, held for sale
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	45,187	43,647
Estimated fair value | Deposits
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	3,030,334	2,784,654
Estimated fair value | Subordinated debentures
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	35,771	35,432
Estimated fair value | Federal Home Loan Bank advances
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	78,000	109,994
Estimated fair value | Other Borrowings
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	200,332	270,286
Level 1 | Securities held to maturity
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	0	0
Level 1 | Portfolio loans, net
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	0	0
Level 1 | State tax credits, held for sale
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	0	0
Level 1 | Deposits
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	2,506,206	2,428,403
Level 1 | Subordinated debentures
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	0	0
Level 1 | Federal Home Loan Bank advances
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	0	0
Level 1 | Other Borrowings
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	0	0
Level 2 | Securities held to maturity
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	43,837	43,441
Level 2 | Portfolio loans, net
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	0	0
Level 2 | State tax credits, held for sale
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	0	0
Level 2 | Deposits
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	0	0
Level 2 | Subordinated debentures
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	35,771	35,432
Level 2 | Federal Home Loan Bank advances
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	78,000	109,994
Level 2 | Other Borrowings
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	200,332	270,286
Level 3 | Securities held to maturity
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	0	0
Level 3 | Portfolio loans, net
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	2,902,083	2,782,704
Level 3 | State tax credits, held for sale
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial assets not on condensed consolidated balance sheets at fair value	45,187	43,647
Level 3 | Deposits
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	524,128	356,251
Level 3 | Subordinated debentures
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	0	0
Level 3 | Federal Home Loan Bank advances
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	0	0
Level 3 | Other Borrowings
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial liabilities not on condensed consolidated balance sheets at fair value	$ 0	$ 0