Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Financial Assets Measured On Recurring Basis

The Company’s only financial assets measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015 were as follows (dollars in thousands):



	Level 1		Level 2		Level 3
September 30, 2016
Assets:
Investment securities available-for-sale	$	—	$	523,275	$	—
Interest rate swap derivatives	—		18,097		—
Total assets	$	—	$	541,372	$	—

Liabilities:
Interest rate swap derivatives	$	—	$	18,097	$	—

December 31, 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		—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table represents the assets measured at fair value on a nonrecurring basis by the Company at September 30, 2016 and December 31, 2015 (dollars in thousands):



	Level 1		Level 2		Level 3
September 30, 2016
Impaired loans	$	—	$	—	$	85
Other real estate owned	—		—		1,677
	$	—	$	—	$	1,762

December 31, 2015
Impaired loans	$	—	$	—	$	50
Other real estate owned	—		—		3,274
	$	—	$	—	$	3,324

Fair Value Inputs, Assets, Quantitative Information

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2016 and December 31, 2015 (dollars in thousands):



	September 30, 2016
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	85	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	$	1,677	Market approach	Appraised value less selling costs of 5% to 10%

	December 31, 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%

Fair Value, by Balance Sheet Grouping

The estimated fair values of the Company’s significant on-balance sheet financial instruments at September 30, 2016 and December 31, 2015 were approximately as follows (dollars in thousands):



		September 30, 2016				December 31, 2015
	Level in Fair Value Hierarchy	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	152,360	$	152,360	$	77,805	$	77,805
Investment securities:
Available-for-sale	Level 2	523,275		523,275		310,262		310,262
Held-to-maturity	Level 2	141,326		148,213		139,424		142,260
FHLB stock	Level 2	3,270		3,270		3,000		3,000
Loans held-for-sale	Level 2	9,478		9,478		3,621		3,621
Loans, net	Level 3	2,034,353		2,043,932		1,662,095		1,656,986
BOLI	Level 3	56,708		56,708		54,450		54,450
MSRs	Level 3	2,246		2,686		2,186		3,027
Interest rate swap derivatives	Level 2	18,097		18,097		8,646		8,646

Financial liabilities:
Deposits	Level 2	2,745,081		2,744,387		2,083,088		2,082,748
Interest rate swap derivatives	Level 2	18,097		18,097		8,646		8,646