DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Assets and liabilities measured at fair value on a recurring basis

The tables below present the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates set forth aggregated by the level in the fair value hierarchy within which those measurements fall:



	December 31, 2017
	Level 1		Level 2		Level 3		Total

	(Dollars in thousands)
Financial Assets:
Available-for-sale securities	$	—	$	705,539	$	—	$	705,539
Correspondent interest rate swaps	—		1,326		—		1,326
Customer interest rate swaps	—		423		—		423
Correspondent interest rate caps	—		75		—		75

Financial Liabilities:
Correspondent interest rate swaps	$	—	$	448	$	—	$	448
Customer interest rate swaps	—		1,325		—		1,325
Customer interest rate caps	—		75		—		75



	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		—		698
Customer interest rate caps	—		5		—		5

Schedule of fair value of assets measured on a nonrecurring basis

The following tables present the assets that were subject to fair value adjustments during the periods indicated, which were still on the balance sheet at the end of the reporting periods:



	December 31, 2017
	Level 3		Total		Losses for the Year Ended December 31, 2017

	(Dollars in thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	20,066	$	20,066	$	5,352
Other real estate owned	802		802		118



	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
Real estate acquired by foreclosure	1,721		1,721		1,016

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 12/31/2017		Valuation Technique	Unobservable Input	Range ⁽¹⁾(Weighted Average)
	(Dollars in thousands)
Loans held for investment	$	3,206,145	Discounted cash flow	Prepayment Speed	0% to 99.59% (28.45%)
				Discount Rates	0% - 11.35% (4.72%)

Real estate acquired by foreclosure	802		Appraisal	Adjustments for comparable properties	8.00%

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

Estimated fair values of the Company's financial instruments

The estimated fair values of the Company’s financial instruments as of the dates indicated are as follows:



	December 31, 2017
	Carrying Value		Level 1		Level 2		Level 3		Fair Value

	(Dollars in thousands)
Financial Assets:
Cash and short term investments	$	140,681	$	140,681	$	—	$	—	$	140,681
Available-for-sale securities	705,539		—		705,539		—		705,539
Held-to-maturity securities	13,275		—		13,146		—		13,146
Other securities	26,617		26,617		—		—		26,617
Loans held for sale	7,156		—		7,156		—		7,156
Loans held for investment	3,190,485		—		—		3,206,145		3,206,145
Real estate acquired by foreclosure	802		—		—		802		802
Total	$	4,084,555	$	167,298	$	725,841	$	3,206,947	$	4,100,086

Financial Liabilities:
Deposits	$	3,397,143	$	—	$	3,392,144	$	—	$	3,392,144
Securities sold under agreements to repurchase	5,173		—		5,173		—		5,173
Other borrowed funds	325,000		—		324,873		—		324,873
Subordinated debentures	47,737		—		45,356		—		45,356
Total	$	3,775,053	$	—	$	3,767,546	$	—	$	3,767,546



	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