Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Financial Assets Measured On Recurring Basis

The Company’s only financial assets measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016 were as follows (dollars in thousands):



	Level 1		Level 2		Level 3
March 31, 2017
Assets:
Investment securities available-for-sale	$	—	$	469,720	$	—
Interest rate swap derivatives	—		3,053		—
Total assets	$	—	$	472,773	$	—

Liabilities:
Interest rate swap derivatives	$	—	$	3,053	$	—

December 31, 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		—

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 March 31, 2017 and December 31, 2016 (dollars in thousands):



	Level 1		Level 2		Level 3
March 31, 2017
Impaired loans	$	—	$	—	$	140
Other real estate owned	—		—		50
	$	—	$	—	$	190

December 31, 2016
Impaired loans	$	—	$	—	$	66
Other real estate owned	—		—		1,677
	$	—	$	—	$	1,743

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 March 31, 2017 and December 31, 2016 (dollars in thousands):



	March 31, 2017
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	140	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 90% to appraised value to reflect liquidation value
Other real estate owned	$	50	Market approach	Appraised value less selling costs of 5% to 10%

	December 31, 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%

Fair Value, by Balance Sheet Grouping

The estimated fair values of the Company’s significant on-balance sheet financial instruments at March 31, 2017 and December 31, 2016 were approximately as follows (dollars in thousands):



		March 31, 2017				December 31, 2016
	Level in Fair Value Hierarchy	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	157,268	$	157,268	$	72,577	$	72,577
Investment securities:
Available-for-sale	Level 2	469,720		469,720		494,819		494,819
Held-to-maturity	Level 2	139,196		141,594		140,557		142,272
FHLB stock	Level 2	3,838		3,838		3,268		3,268
Loans held-for-sale	Level 2	4,066		4,066		8,651		8,651
Loans, net	Level 3	2,088,174		2,078,424		2,077,358		2,064,937
BOLI	Level 3	56,869		56,869		56,957		56,957
MSRs	Level 3	2,423		3,701		2,348		3,321
Interest rate swap derivatives	Level 2	3,053		3,053		5,239		5,239

Financial liabilities:
Deposits	Level 2	2,714,781		2,713,431		2,661,813		2,661,045
Interest rate swap derivatives	Level 2	3,053		3,053		5,239		5,239