Fair Value (Tables)

12 Months Ended

Dec. 31, 2016

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, 2016 and 2015 were as follows (dollars in thousands):



	Level 1		Level 2		Level 3
2016
Assets:
Investment securities available-for-sale	$	—	$	494,819	$	—
Interest rate swap derivatives	—		5,239		—
Total assets	$	—	$	500,058	$	—

Liabilities:
Interest rate swap derivatives	$	—	$	5,239	$	—

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 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, 2016 and 2015 (dollars in thousands):



	Level 1		Level 2		Level 3
2016
Impaired loans	$	—	$	—	$	66
Other real estate owned	—		—		1,677
	$	—	$	—	$	1,743

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

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, 2016 and 2015 (dollars in thousands):



	2016
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	66	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 70% to 100% to appraised value to reflect liquidation value
Other real estate owned	$	1,677	Market approach	Appraised value less selling costs of 5% to 10%



	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 of balance sheet financial instruments

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



		2016				2015
	Level in Fair Value Hierarchy	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	72,577	$	72,577	$	77,805	$	77,805
Investment securities:
Available-for-sale	Level 2	494,819		494,819		310,262		310,262
Held-to-maturity	Level 2	140,557		142,272		139,424		142,260
FHLB stock	Level 2	3,268		3,268		3,000		3,000
Loans held-for-sale	Level 2	8,651		8,651		3,621		3,621
Loans, net	Level 3	2,077,358		2,064,937		1,662,095		1,656,986
BOLI	Level 3	56,957		56,957		54,450		54,450
MSRs	Level 3	2,348		3,321		2,186		3,027
Interest rate swap derivatives	Level 2	5,239		5,239		8,646		8,646

Financial liabilities:
Deposits	Level 2	2,661,813		2,661,045		2,083,088		2,082,748
Interest rate swap derivatives	Level 2	5,239		5,239		8,646		8,646