Disclosures About Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

Assets and liabilities measured at fair value on a recurring basis

n which those measurements fall:

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Financial Assets:
Available-for-sale securities	$	112,881	$	161,738	$	-	$	274,619
Correspondent interest rate swaps		-		698		-		698
Customer interest rate swaps		-		1,307		-		1,307
Correspondent interest rate caps		-		5		-		5
Financial Liabilities:
Correspondent interest rate swaps	$	-	$	1,389	$	-	$	1,389
Customer interest rate swaps		-		698		-
Customer interest rate caps		-		5		-		5

	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Financial Assets:
Available-for-sale securities	$	74,974	$	201,047	$	-	$	276,021
Customer interest rate swaps		-		1,528		-		1,528
Correspondent interest rate caps		-		25		-		25
Financial Liabilities:
Correspondent interest rate swaps	$	-	$	1,612	$	-	$	1,612
Customer interest rate caps		-		25		-		25

Schedule of fair value of assets measured on a nonrecurring basis

	December 31, 2016
	Level 3		Total		Losses for the Year Ended  December 31, 2016
	(Dollars in thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	23,613	$	23,613	$	21,886
Other real estate owned		1,721		1,721		1,016

	December 31, 2015
	Level 3		Total		Losses for the Year Ended  December 31, 2015
	(Dollars in thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	32,988	$	32,988	$	14,581
Real estate acquired by foreclosure		1,665		1,665		155

Quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets at the date indicated:

	Fair Value at 12/31/2016		Valuation Technique	Unobservable Input	Range (1) (Weighted Average)
	(Dollars in thousands)
Loans held for investment	$	3,128,966	Discounted cash flow	Prepayment Speed	0% to 99.50%  (28.59%)
				Discount Rates	0.17% - 11.36%  (4.04%)
Real estate acquired by foreclosure		5,220	Appraisal	Adjustments for comparable properties	8.00% - 22.00%  (14.18%)

⁽¹⁾ Represents range of factors applied to determine fair value.

Estimated fair values of the Company's financial instruments

	December 31, 2016
	Carrying Value		Level 1		Level 2		Level 3		Fair Value
	(Dollars in thousands)
Financial Assets:
Cash and short term investments	$	389,007	$	389,007	$	-	$	-	$	389,007
Available-for-sale securities		274,619		112,881		161,738		-		274,619
Held-to-maturity securities		35,505		-		34,845		-		34,845
Other securities		17,983		17,983		-		-		17,983
Loans held for sale		23,989		24,144		-		-		24,144
Loans held for investment		3,098,220		-		-		3,128,966		3,128,966
Real estate acquired by foreclosure		5,220		-		-		5,220		5,220
Total	$	3,844,543	$	544,015	$	196,583	$	3,134,186	$	3,874,784
Financial Liabilities:
Deposits	$	3,374,700	$	-	$	3,375,047	$	-	$	3,375,047
Securities sold under agreements to repurchase		3,493		-		3,493		-		3,493
Other borrowed funds		150,000		-		148,921		-		148,921
Subordinated debentures		47,492		-		47,492		-		47,492
Total	$	3,575,685	$	-	$	3,574,953	$	-	$	3,574,953

	December 31, 2015
	Carrying Value		Level 1		Level 2		Level 3		Fair Value
		(Dollars in thousands)
Financial Assets:
Cash and short term investments	$	124,906	$	124,906	$	-	$	-	$	124,906
Available-for-sale securities		276,021		74,974		201,047		-		276,021
Held-to-maturity securities		42,130		-		41,996		-		41,996
Other securities		20,320		20,320		-		-		20,320
Loans held for sale		384		384		-		-		384
Loans held for investment		3,130,669		-		-		3,147,615		3,147,615
Real estate acquired by foreclosure		12,122		-		-		12,122		12,122
Total	$	3,606,552	$	220,584	$	243,043	$	3,159,737	$	3,623,364
Financial Liabilities:
Deposits	$	3,100,748	$	-	$	3,100,748	$	-	$	3,100,748
Securities sold under agreements to repurchase		3,073		-		3,073		-		3,073
Other borrowed funds		223,265		-		221,104		-		221,104
Subordinated debentures		13,187		-		13,187		-		13,187
Total	$	3,340,273	$	-	$	3,338,112	$	-	$	3,338,112