Fair Value (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value

Schedule of financial assets and liabilities measured on a recurring basis

			Fair Value Measurements Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets at June 30, 2016:
Available-for-sale securities:
Agency mortgage-backed securities	$	373,460		—	$	373,460		—
Trust preferred securities	$	15,938		—	$	15,938		—
Corporate bonds	$	1,037		—	$	1,037		—
I/O strip receivables	$	1,154		—	$	1,154		—
Assets at December 31, 2015:
Available-for-sale securities:
Agency mortgage-backed securities	$	324,230		—	$	324,230		—
U.S. Treasury	$	30,003	$	30,003		—		—
Trust preferred securities	$	15,132		—	$	15,132		—
U.S. Government sponsored entities	$	9,041		—	$	9,041		—
Corporate bonds	$	6,673		—	$	6,673		—
I/O strip receivables	$	1,367		—	$	1,367		—

Schedule of assets and liabilities measured on a non-recurring basis

			Fair Value Measurements Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets at June 30, 2016:
Impaired loans—held-for-investment:
Commercial	$	193		—		—	$	193
Real estate:
Commercial		461		—		—		461
Land and construction		207		—		—		207
Home equity		361		—		—		361
	$	1,222		—		—	$	1,222
Assets at December 31, 2015:
Impaired loans—held-for-investment:
Commercial	$	1,333		—		—	$	1,333
Real estate:
Commercial		503		—		—		503
Land and construction		219		—		—		219
Home equity		647		—		—		647
	$	2,702		—		—	$	2,702

Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value

	June 30, 2016			December 31, 2015
	(Dollars in thousands)
Impaired loans held-for-investment:
Book value of impaired loans held-for-investment carried at fair value	$	1,540		$	2,988
Book value of impaired loans held-for-investment carried at cost		2,961			3,539
Total impaired loans held-for-investment	$	4,501		$	6,527
Impaired loans held-for-investment carried at fair value:
Book value of impaired loans held-for-investment carried at fair value	$	1,540		$	2,988
Specific valuation allowance		(318	)		(286	)
Impaired loans held-for-investment carried at fair value, net	$	1,222		$	2,702

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

	June 30, 2016
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans—held-for-investment:
Commercial	$	193	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%
Real estate:
Commercial	$	461	Market Approach	Discount adjustment for differences between comparable sales	0% to 3% (3%)
Land and construction	$	207	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%
Home equity	$	361	Market Approach	Discount adjustment for differences between comparable sales	0% to 3% (3%)

	December 31, 2015
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans—held-for-investment:
Commercial	$	1,333	Market Approach	Discount adjustment for differences between comparable sales	0% to 5% (5%)
Real estate:
Commercial	$	503	Market Approach	Discount adjustment for differences between comparable sales	0% to 3% (3%)
Land and construction	$	219	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%
Home equity	$	647	Market Approach	Discount adjustment for differences between comparable sales	0% to 2% (2%)

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2016 are as follows:

			Estimated Fair Value
	Carrying Amounts		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	158,844	$	158,844	$	—	$	—	$	158,844
Securities available-for-sale		390,435		—		390,435		—		390,435
Securities held-to-maturity		210,170		—		189,184		—		189,184
Loans (including loans held-for-sale), net		1,449,072		—		4,879		1,524,399		1,529,278
FHLB and FRB stock		15,190		—		—		—		N/A
Accrued interest receivable		6,483		—		1,928		4,555		6,483
I/O strips receivables		1,154		—		1,154		—		1,154
Liabilities:
Time deposits	$	254,022	$	—	$	254,373	$	—	$	254,373
Other deposits		1,819,762		—		1,819,762		—		1,819,762
Accrued interest payable		176		—		176		—		176

        The carrying amounts and estimated fair values of the Company's financial instruments at December 31, 2015:

			Estimated Fair Value
	Carrying Amounts		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	344,092	$	344,092	$	—	$	—	$	344,092
Securities available-for-sale		385,079		30,003		355,076		—		385,079
Securities held-to-maturity		109,311		—		109,821		—		109,821
Loans (including loans held-for-sale), net		1,347,087		—		7,297		1,337,939		1,345,236
FHLB stock, FRB stock, and other investments		12,694		—		—		—		N/A
Accrued interest receivable		5,924		14		1,640		4,270		5,924
I/O strips receivables		1,367		—		1,367		—		1,367
Liabilities:
Time deposits	$	244,861	$	—	$	245,279	$	—	$	245,279
Other deposits		1,817,914		—		1,817,914		—		1,817,914
Short-term borrowings		3,000		—		3,000		—		3,000
Accrued interest payable		170		—		170		—		170