Fair Value (Tables)

12 Months Ended

Dec. 31, 2015

Fair value of financial assets measured on recurring basis

The Company’s only financial assets measured at fair value on a recurring basis at December 31, 2015 and 2014 were as follows (dollars in thousands):



	Level 1		Level 2		Level 3
2015
Assets:
Investment securities available-for-sale	$	—	$	310,262	$	—
Interest rate swap derivatives	—		8,646		—
Total assets	$	—	$	318,908	$	—

Liabilities:
Interest rate swap derivatives	$	—	$	8,646	$	—

2014
Assets:
Investment securities available-for-sale	$	—	$	319,882	$	—
Interest rate swap derivatives	—		4,828		—
Total assets	$	—	$	324,710	$	—

Liabilities:
Interest rate swap derivatives	$	—	$	4,828	$	—

Fair value of financial assets measured on nonrecurring basis

The following table represents the assets measured at fair value on a nonrecurring basis by the Company at December 31, 2015 and 2014 (dollars in thousands):



	Level 1		Level 2		Level 3
2015
Impaired loans	$	—	$	—	$	50
Other real estate owned	—		—		3,274
	$	—	$	—	$	3,324

2014
Impaired loans	$	—	$	—	$	1,423
Other real estate owned	—		—		3,309
	$	—	$	—	$	4,732

Quantitative information about level 3 fair value measurements on a nonrecurring basis

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2015 and 2014 (dollars in thousands):



	2015
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	50	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	3,274	Market approach	Appraised value less selling costs of 5% to 10%



	2014
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	1,423	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	3,309	Market approach	Appraised value less selling costs of 5% to 10%

Fair value of balance sheet financial instruments

The estimated fair values of the Company’s significant on-balance sheet financial instruments at December 31, 2015 and 2014 were approximately as follows (dollars in thousands):



		2015				2014
	Level in Fair Value Hierarchy	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	77,805	$	77,805	$	83,089	$	83,089
Investment securities:
Available-for-sale	Level 2	310,262		310,262		319,882		319,882
Held-to-maturity	Level 2	139,424		142,260		152,579		155,555
FHLB stock	Level 2	3,000		3,000		25,646		25,646
Loans held-for-sale	Level 2	3,621		3,621		6,690		6,690
Loans, net	Level 3	1,662,095		1,656,986		1,468,784		1,471,327
BOLI	Level 3	54,450		54,450		53,449		53,449
MSRs	Level 3	2,186		3,027		2,248		2,773
Interest rate swap derivatives	Level 2	8,646		8,646		4,828		4,828

Financial liabilities:
Deposits	Level 2	2,083,088		2,082,748		1,981,622		1,981,994
Interest rate swap derivatives	Level 2	8,646		8,646		4,828		4,828