| 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, 2014 and 2013 were as follows (dollars in thousands): | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | 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 |
| | $ | — |
| | | | | | | 2013 | |
| | |
| | |
| Assets: | | | | | | Investment securities available-for-sale | $ | — |
| | $ | 194,481 |
| | $ | — |
|
|
| 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, 2014 and 2013 (dollars in thousands): | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | 2014 | |
| | |
| | |
| Impaired loans | $ | — |
| | $ | — |
| | $ | 1,423 |
| Other real estate owned | — |
| | — |
| | 3,309 |
| | $ | — |
| | $ | — |
| | $ | 4,732 |
| | | | | | | 2013 | |
| | |
| | |
| Impaired loans | $ | — |
| | $ | — |
| | $ | 8,887 |
| Other real estate owned | — |
| | — |
| | 3,144 |
| | $ | — |
| | $ | — |
| | $ | 12,031 |
|
|
| 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, 2014 and 2013 (dollars in thousands): | | | | | | | | | | 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% |
| | | | | | | | | | 2013 | | Fair Value Estimate | | Valuation Techniques | | Unobservable Input | Impaired loans | $ | 8,887 |
| | 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 | $ | 3,144 |
| | 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, 2014 and 2013 were approximately as follows (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | 2014 | | 2013 | | Level in Fair
Value
Hierarchy | | Carrying
value | | Estimated
fair value | | Carrying
value | | Estimated
fair value | Financial assets: | | | |
| | |
| | |
| | |
| Cash and cash equivalents | Level 1 | | $ | 83,089 |
| | $ | 83,089 |
| | $ | 81,849 |
| | $ | 81,849 |
| Investment securities: | | | | | |
| | |
| | |
| Available-for-sale | Level 2 | | 319,882 |
| | 319,882 |
| | 194,481 |
| | 194,481 |
| Held-to-maturity | Level 2 | | 152,579 |
| | 155,555 |
| | 1,320 |
| | 1,342 |
| FHLB stock | Level 2 | | 25,646 |
| | 25,646 |
| | 9,913 |
| | 9,913 |
| Loans held-for-sale | Level 2 | | 6,690 |
| | 6,690 |
| | 10,359 |
| | 10,359 |
| Loans, net | Level 3 | | 1,468,784 |
| | 1,471,327 |
| | 973,618 |
| | 977,142 |
| BOLI | Level 3 | | 53,449 |
| | 53,449 |
| | 36,567 |
| | 36,567 |
| MSRs | Level 3 | | 2,248 |
| | 2,773 |
| | 2,232 |
| | 2,790 |
| Interest rate swap derivatives | Level 2 | | 4,828 |
| | 4,828 |
| | — |
| | — |
| | | | | | | | | | | Financial liabilities: | | | |
| | |
| | |
| | |
| Deposits | Level 2 | | 1,981,622 |
| | 1,981,994 |
| | 1,167,320 |
| | 1,167,532 |
| FHLB borrowings | Level 2 | | — |
| | — |
| | 27,000 |
| | 27,000 |
| Interest rate swap derivatives | Level 2 | | 4,828 |
| | 4,828 |
| | — |
| | — |
|
|