FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2015

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



	Three months ended March 31,
	2015		2014

Level 3 AFS securities at beginning of period	$	11,290	$	7,583
Sales, calls or maturities	—		(1,000		)
Changes in unrealized gains and losses	90		171
Level 3 AFS securities at end of period	$	11,380	$	6,754

Schedule of changes in fair value of interest rate lock commitments



	Three months ended March 31,
	2015			2014

Interest rate lock commitments at beginning of period	$	342		$	354
Issuances	1,465			328
Settlements	(1,171		)	(351		)
Interest rate lock commitments at end of period	$	636		$	331

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.



	Total		Level 1		Level 2		Level 3
March 31, 2015
Measured at fair value on a recurring basis:
Securities available for sale:
GSE obligations	$	15,035	$	—	$	15,035	$	—
SBA-guaranteed securities	58,345		58,345		—		—
Mortgage-backed securities issued by GSE	414,436		—		414,436		—
Corporate bonds	120,255		2,524		106,351		11,380
Non-agency RMBS	4,517		—		4,517		—
Non-agency CMBS	3,548		—		3,548		—
Municipal bonds	39,131		—		39,131		—
Other debt securities	245		245		—		—
Equity securities	2,811		2,811		—		—
SBA-guaranteed loans held for sale	7,735		—		7,735		—
SBA loans held for investment	6,472		—		6,472		—
Derivative assets	1,470		—		834		636
Derivative liabilities	4,251		—		4,251		—

Measured at fair value on a non-recurring basis:
Impaired loans	$	16,031	$	—	$	—	$	16,031
Foreclosed assets	12,427		—		—		12,427



	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		—		2,026		342
Derivative liabilities	2,497		—		2,497		—

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

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.



				Fair Value
	Valuation Technique	Unobservable Input	Range	March 31, 2015		December 31, 2014
Recurring measurements:
Investment securities	Pricing model	Illiquidity or credit factor in discount rates	1-2%	$	11,380	$	11,290

Interest rate lock commitments	Pricing model	Pull through rates	80-95%	636		342

Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts	15-50%	16,031		9,595
	Discounted expected cash flows	Expected loss rates	0-75%
	Discounted expected cash flows	Discount rates	2-8%
Foreclosed assets	Discounted appraisals	Collateral discounts	15-50%	12,427		12,891

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.



	March 31, 2015
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	108,502	$	108,502	$	108,502	$	—	$	—
Investment securities available for sale	658,323		658,323		63,967		582,976		11,380
Investment securities held to maturity	39,511		40,607		—		40,607		—
Loans held for sale	32,322		32,322		—		32,322		—
Loans, net	2,905,575		2,937,060		—		6,472		2,930,588
Purchased accounts receivable	62,129		62,129		—		62,129		—
Federal Home Loan Bank stock	20,277		20,277		—		20,277		—
Derivative assets	1,470		1,470		—		834		636
Accrued interest receivable	11,950		11,950		—		11,950		—

Financial liabilities:
Deposits	3,209,175		3,210,666		—		3,210,666		—
Short-term borrowings	325,500		325,500		—		—		325,500
Long-term debt	137,199		142,499		—		—		142,499
Derivative liabilities	4,251		4,251		—		4,251		—
Accrued interest payable	1,996		1,996		—		1,996		—



	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
Purchased accounts receivable	44,821		44,821		—		44,821		—
Federal Home Loan Bank stock	19,499		19,499		—		19,499		—
Derivative assets	2,368		2,368		—		2,027		341
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		—

- 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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