FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2017

The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows:



	As of September 30, 2017
	Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Financial assets
Cash and cash equivalents	$	192,427	$	192,427	$	—	$	—	$	192,427
Available for sale securities	323,856		—		323,856		—		323,856
Loans held for investment, net of allowance	2,177,818		—		—		2,184,269		2,184,269
FHLB stock	12,790		N/A		N/A		N/A		N/A
Accrued interest receivable	7,993		1		2,081		5,911		7,993

Financial liabilities
Deposits	$	2,286,615	$	—	$	2,284,709	$	—	$	2,284,709
Accrued interest payable	521		—		521		—		521
Borrowed funds	207,569		—		206,850		—		206,850
Subordinated debentures	9,277		—		9,277		—		9,277



	As of December 31, 2016
	Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Financial assets
Cash and cash equivalents	$	142,098	$	142,098	$	—	$	—	$	142,098
Available for sale securities	316,455		—		316,455		—		316,455
Loans held for investment, net of allowance	1,873,724		—		—		1,872,056		1,872,056
FHLB stock	13,175		N/A		N/A		N/A		N/A
Accrued interest receivable	9,007		3		3,616		5,388		9,007

Financial liabilities
Deposits	$	1,870,183	$	—	$	1,868,429	$	—	$	1,868,429
Accrued interest payable	285		—		285		—		285
Borrowed funds	285,569		—		284,989		—		284,989
Subordinated debentures	9,196		—		9,196		—		9,196

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present fair values for assets measured at fair value on a recurring basis:



	As of September 30, 2017
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Available for sale securities:
U.S. Government and agency securities	$	—	$	8,780	$	—	$	8,780
Municipal securities	—		238,372		—		238,372
Agency mortgage-backed pass-through securities	—		30,132		—		30,132
Corporate bonds and other	—		46,572		—		46,572
Total	$	—	$	323,856	$	—	$	323,856



	As of December 31, 2016
	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Available for sale securities:
U.S. Government and agency securities	$	—	$	6,149	$	—	$	6,149
Municipal securities	—		237,802		—		237,802
Agency mortgage-backed pass-through securities	—		27,324		—		27,324
Corporate bonds and other	—		45,180		—		45,180
Total	$	—	$	316,455	$	—	$	316,455

Fair Value Measurements, Nonrecurring

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances such as evidence of impairment.



	As of September 30, 2017
	Level 1		Level 2		Level 3
	(Dollars in thousands)
Impaired loans:
Commercial and industrial	$	—	$	—	$	4,622
Commercial real estate (including multi-family residential)	—		—		8,663
Consumer and other	—		—		28
Other real estate owned	—		—		453
	$	—	$	—	$	13,766



	As of December 31, 2016
	Level 1		Level 2		Level 3
	(Dollars in thousands)
Impaired loans:
Commercial and industrial	$	—	$	—	$	1,785
Commercial real estate (including multi-family residential)	—		—		468
Other real estate owned	—		—		1,503
	$	—	$	—	$	3,756