Fair Value (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

In addition, it includes guidance on identifying circumstances that indicate a transaction is not orderly. Under ASC 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at December 31, 2016 and December 31, 2015 included:

			Quoted Prices in		Significant Other		Significant Other
			Active Markets for		Observable		Unobservable
	Fair Value		Identical Assets		Inputs		Inputs
(Dollars in thousands)	Measurements		Level 1		Level 2		Level 3
At December 31, 2016
Available for sale securities (1)	$	950,503	$	100	$	950,403	$	0
Loans held for sale (2)		15,332		0		15,332		0
Loans (3)		4,120		0		3,170		950
Other real estate owned (4)		9,949		0		0		9,949

At December 31, 2015
Available for sale securities (1)	$	790,766	$	225	$	790,541	$	0
Loans held for sale (2)		23,998		0		23,998		0
Loans (3)		7,511		0		6,052		1,459
Other real estate owned (4)		7,039		0		598		6,441

(1)

See Note D for further detail of fair value of individual investment categories.

(2)

Recurring fair value basis determined using observable market data.

(3)

See Note F. Nonrecurring fair value adjustments to loans identified as impaired reflect full or partial write-downs that are based on the loan’s observable market price or current appraised value of the collateral in accordance with ASC 310.

(4)

Fair value is measured on a nonrecurring basis in accordance with ASC 360.

Fair Value Measurements, Recurring and Nonrecurring

The carrying amount and fair value of the Company's other significant financial instruments that are not measured at fair value on a recurring basis in the balance sheet as of December 31, 2016 and December 31, 2015 is as follows:

			Quoted Prices in		Significant Other		Significant Other
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
(Dollars in thousands)	Amount		Level 1		Level 2		Level 3
At December 31, 2016
Financial Assets
Securities held to maturity (1)	$	372,498	$	0	$	369,881	$	0
Loans, net		2,852,016		0		0		2,840,993
Financial Liabilities
Deposits		3,523,245		0		0		3,523,322
Subordinated debt		70,241		0		54,908		0

At December 31, 2015
Financial Assets
Securities held to maturity (1)	$	203,525	$	0	$	202,813	$	0
Loans, net		2,129,691		0		0		2,147,024
Financial Liabilities
Deposits		2,844,387		0		0		2,843,800
FHLB borrowings		50,000		0		51,788		0
Subordinated debt		69,961		0		52,785		0

(1)

See Note D for further detail of recurring fair value basis of individual investment categories.

Schedule of contractual balance and gains or losses aggregate fair value

Interest income is recorded based on contractual terms of the loan in accordance with Company policy on loans held for investment. None of the loans are 90 days or more past due or on nonaccrual at December 31, 2016 and December 31, 2015, respectively.

	December 31,		December 31,
(Dollars in thousands)	2016		2015
Aggregate fair value	$	15,332	$	23,998
Contractual balance		14,904		23,384
Gains (losses)		428		614

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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