FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Components of change in fair value of level 3 available for sale securities

The following table provides the components of the change in fair value of Level 3 available for sale securities for the periods presented.



	Year ended December 31,
	2014			2013		2012

Level 3 AFS securities at beginning of period	$	7,583		$	—	$	—
Purchases	4,600			7,505		—
Sales, calls or maturities	(1,000		)	—		—
Changes in unrealized gains and losses	107			78		—
Level 3 AFS securities at end of period	$	11,290		$	7,583	$	—

Schedule of changes in fair value of interest rate lock commitments

The following table provides the components of the change in fair value of interest rate lock commitments for the periods presented.



	Year ended December 31,
	2014			2013			2012

Interest rate lock commitments at beginning of period	$	354		$	795		$	212
Fair value of acquired Yadkin interest rate lock commitments	231			—			—
Issuances	2,366			2,909			2,600
Settlements	(2,609		)	(3,350		)	(2,017		)
Interest rate lock commitments at end of period	$	342		$	354		$	795

Fair value and measurement level of assets and liabilities

The following tables summarize fair value information for assets and liabilities measured on a recurring and nonrecurring basis.



Description	Total		Level 1		Level 2		Level 3

December 31, 2014
Measured at fair value on a recurring basis:
Securities available for sale:
GSE obligations	$	14,944	$	—	$	14,944	$	—
SBA-guaranteed securities	60,120		60,120		—		—
Mortgage-backed securities issued by GSE	425,283		—		425,283		—
Corporate bonds	119,912		2,545		106,077		11,290
Non-agency RMBS	4,963		—		4,963		—
Non-agency CMBS	3,578		—		3,578		—
Municipal bonds	40,258		—		40,258		—
Other debt securities	498		498		—		—
Equity securities	2,865		2,865		—		—
SBA-guaranteed loans held for sale	8,365		—		8,365		—
SBA loans held for investment	8,906		—		8,906		—
Derivative assets	2,368		—		2,027		342
Derivative liabilities	2,497		—		2,497		—

Measured at fair value on a nonrecurring basis:
Impaired loans	$	9,595	$	—	$	—	$	9,595
Foreclosed assets	12,891		—		—		12,891



Description	Total		Level 1		Level 2		Level 3

December 31, 2013
Measured at fair value on a recurring basis:
Securities available for sale:
GSE obligations	$	14,673	$	—	$	14,673	$	—
SBA-guaranteed securities	65,880		65,880		—		—
Mortgage-backed securities issued by GSE	205,260		—		205,260		—
Corporate bonds	110,740		—		103,157		7,583
Non-agency CMBS	5,938		—		5,938		—
Municipal bonds	601		—		601		—
Other debt securities	253		253		—		—
Equity securities	1,043		1,043		—		—
Derivative assets	4,717		—		4,363		354

Measured at fair value on a non-recurring basis:
Mortgage servicing rights	$	4,127	$	—	$	—	$	4,127
Impaired loans	8,264		—		—		8,264
Foreclosed assets	10,823		—		—		10,823

Quantitative Information about level 3 fair value measurements

The table below outlines the valuation techniques, unobservable inputs, and the range of quantitative inputs used in the valuations.



	Valuation Technique	Unobservable Input	Range	Fair Value as of December 31, 2014		Fair Value as of December 31, 2013
Recurring measurements:
Investment securities	Pricing model	Illiquidity or credit factor in discount rates	1-2%	$	11,290	$	7,583

Interest rate lock commitments	Pricing model	Pull through rates	80-95%	$	342	$	354

Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts	15-50%	$	9,595
	Discounted expected cash flows	Expected loss rates	0-75%			$	8,264
	Discounted expected cash flows	Discount rates	2-8%
Foreclosed assets	Discounted appraisals	Collateral discounts	15-50%	$	12,891	$	10,823

Schedule of carrying amounts and estimated fair values of financial instruments

The following tables summarize the carrying amounts and estimated fair values of the Company's financial instruments.



	December 31, 2014
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	132,365	$	132,365	$	132,365	$	—	$	—
Investment securities available for sale	672,421		672,421		66,028		595,103		11,290
Investment securities held to maturity	39,620		40,404		—		40,404		—
Loans held for sale	20,205		20,205		—		20,205		—
Loans, net	2,890,449		2,919,573		—		1,241		2,918,332
Federal Home Loan Bank stock	19,499		19,499		—		19,499		—
Bank-owned life insurance	76,990		76,990		—		76,990		—
Derivative assets	2,368		2,368		—		2,027		342
Purchased accounts receivable	44,821		44,821		—		44,821		—
Accrued interest receivable	12,071		12,071		—		12,071		—

Financial liabilities:
Deposits	3,247,364		3,245,431		—		3,245,431		—
Short-term borrowings	250,500		250,500		—		—		250,500
Long-term debt	180,164		183,326		—		—		183,326
Derivative liabilities	2,497		2,497		—		2,497		—
Accrued interest payable	2,688		2,688		—		2,688		—



	December 31, 2013
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	100,780	$	100,780	$	100,780	$	—	$	—
Investment securities available for sale	404,388		404,388		67,176		329,629		7,583
Investment securities held to maturity	500		500		—		—		500
Loans held for sale	8,663		8,663		—		8,663		—
Loans, net	1,385,790		1,380,437		—		—		1,380,437
Federal Home Loan Bank stock	8,929		8,929		—		8,929		—
Bank-owned life insurance	33,148		33,148		—		33,148		—
Derivative assets	4,717		4,717		—		4,363		354
Purchased accounts receivable	18,725		18,725		—		18,725		—
Accrued interest receivable	5,356		5,356		—		5,356		—

Financial liabilities:
Deposits	1,672,231		1,674,175		—		1,674,175		—
Short-term borrowings	126,500		126,726		—		—		126,726
Long-term debt	72,921		72,397		—		—		72,397
Accrued interest payable	1,817		1,817		—		1,817		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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