Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Fair value of assets and liabilities

Schedule Of Recurring Level III Assets

	For the three months ended		For the three months ended		For the six months ended		For the six months ended
Interest Rate Lock Commitments	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
(in thousands)
Balance, beginning of period	$	2,769	$	1,790	$	1,583	$	1,020
Realized and unrealized gains (loss) included in earnings		856		(137)		2,042		633
Balance, end of period	$	3,625	$	1,653	$	3,625	$	1,653

Schedule of quantitative information about assets measured at fair value on a non-recurring basis

	Quantitative Information about Level 3 Fair Value Measurements
			Valuation	Unobservable
(Dollars in thousands)	Fair Value		Technique	Input	Range
June 30, 2016:
Impaired loans	$	11,675	Appraisal of collateral (1)	Appraisal adjustments(2)	20% - 62%
				Liquidation expense (2)	5% - 10%
Other real estate owned	$	353	Appraisal of collateral (1)	Appraisal adjustments (2)	20% - 30%
				Liquidation expense (2)	5% - 10%

	Quantitative Information about Level 3 Fair Value Measurements
			Valuation	Unobservable
(Dollars in thousands)	Fair Value		Technique	Input	Range
December 31, 2015:
Impaired loans	$	14,362	Appraisal of collateral (1)	Appraisal adjustments (2)	20% - 62%
				Liquidation expense (2)	5% - 10%
Other real estate owned	$	239	Appraisal of collateral (1)	Appraisal adjustments (2)	20% - 30%
				Liquidation expense (2)	5% - 10%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not observable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.  The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Schedule of carrying values and estimated fair values of the Company's financial instruments

The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows (in thousands):

Fair Value Measurements at:

					Quoted Prices in		Significant		Significant
					Active Markets For		Other		Unobservable
	Carrying		Estimated		Identical Assets		Observable		Inputs
	Value		Fair Value		(Level 1)		Inputs (Level 2)		(Level 3)
June 30, 2016:
Financial assets:
Cash and cash equivalents	$	28,762	$	28,762	$	28,762	$	—	$	—
Certificates of deposits with other banks		13,150		13,394		—		13,394		—
Securities available-for-sale		138,844		138,844		—		138,844		—
Loans held for sale		131,671		131,671		—		131,671		—
Loans, net		1,078,415		1,072,011		—		—		1,072,011
Mortgage servicing rights		662		662		—		—		662
Interest rate lock commitment		3,625		3,625		—		—		3,625
Interest rate swap		1,475		1,475		—		1,475		—
Interest rate cap		64		64		—		64		—
Accrued interest receivable		3,974		3,974		—		754		3,220
Financial liabilities:
Deposits	$	1,067,242	$	1,081,195	$	—	$	1,081,195	$	—
Repurchase agreements		26,048		26,048		—		26,048		—
FHLB and other borrowings		213,008		213,015		—		213,015		—
Interest rate swap		1,475		1,475		—		1,475		—
Forward sales commitments		2,077		2,077		—		2,077		—
Accrued interest payable		720		720		—		720		—
Subordinated debt		33,524		32,172		—		32,172		—
December 31, 2015
Financial assets:
Cash and cash equivalents	$	29,133	$	29,133	$	29,133	$	—	$	—
Certificates of deposits with other banks		13,150		13,270		—		13,270		—
Securities available-for-sale		70,256		70,256		—		70,256		—
Securities held-to-maturity		52,859		54,470		—		54,470		—
Loans held for sale		102,623		102,623		—		102,623		—
Loans, net		1,024,164		1,034,832		—		—		1,034,832
Mortgage servicing rights		956		956		—		—		956
Interest rate lock commitment		1,583		1,583		—		—		1,583
Interest rate swap		405		405		—		405		—
Interest rate cap		437		437		—		437		—
Accrued interest receivable		3,356		3,356		—		723		2,633
Financial liabilities:
Deposits	$	1,012,314	$	1,015,521	$	—	$	1,015,521	$	—
Repurchase agreements		27,437		27,437		—		27,437		—
FHLB and other borrowings		183,198		183,211		—		183,211		—
Interest rate swap		405		405		—		405		—
Accrued interest payable		474		474		—		474		—
Subordinated debt		33,524		32,172		—		32,172		—

Recurring

Fair value of assets and liabilities

Schedule of assets measured at fair value

	June 30, 2016
(in thousands)	Level I		Level II		Level III		Total
Assets:
U.S. Government Agency securities	$	—	$	24,068	$	—	$	24,068
U.S. Sponsored Mortgage backed securities		—		44,923		—		44,923
Municipal securities		—		63,654		—		63,654
Equity and Other securities		686		5,513		—		6,199
Loans held for sale		—		131,671		—		131,671
Interest rate lock commitment		—		—		3,625		3,625
Interest rate swap		—		1,475		—		1,475
Interest rate cap		—		64		—		64
Liability:
Interest rate swap		—		1,475		—		1,475
Forward sales commitments		—		2,077		—		2,077

	December 31, 2015
(in thousands)	Level I		Level II		Level III		Total
Assets:
U.S. Government Agency securities	$	—	$	29,351	$	—	$	29,351
U.S. Sponsored Mortgage backed securities		—		33,714		—		33,714
Municipal securities		—		1,798		—		1,798
Equity and Other securities		—		5,393		—		5,393
Loans held for sale		—		102,623		—		102,623
Interest rate lock commitment		—		—		1,583		1,583
Interest rate swap		—		405		—		405
Interest rate cap		—		437		—		437
Liabilities:
Interest rate swap		—		405		—		405

Non-recurring

Fair value of assets and liabilities

Schedule of assets measured at fair value

	June 30, 2016
(in thousands)	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	—	$	—	$	11,675	$	11,675
Other real estate owned		—		—		353		353

	December 31, 2015
(in thousands)	Level I		Level II		Level III		Total
Assets:
Impaired loans	$	—	$	—	$	14,362	$	14,362
Other real estate owned		—		—		239		239