Heritage Oaks Bancorp (HEOP) 10-Q 30 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 29, 2015
Document and Entity Information
Entity Registrant Name	HERITAGE OAKS BANCORP
Entity Central Index Key	921,547
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,314,242
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 16,085	$ 12,548
Interest earning deposits in other banks	112,928	23,032
Total cash and cash equivalents	129,013	35,580
Investment securities available for sale, at fair value	379,824	355,580
Loans held for sale, at lower of cost or fair value	8,736	2,586
Gross loans held for investment	1,191,153	1,193,483
Net deferred loan fees	(1,157)	(1,445)
Allowance for loan and lease losses	(16,982)	(16,802)
Net loans held for investment	1,173,014	1,175,236
Premises and equipment, net	37,996	37,820
Premises held for sale	1,840	1,978
Bank-owned life insurance	25,032	24,711
Goodwill	24,885	24,885
Deferred tax assets, net	23,180	24,920
Federal Home Loan Bank stock	7,853	7,853
Other intangible assets	4,823	5,347
Other assets	12,183	13,631
Total assets	1,828,379	1,710,127
Liabilities
Non-interest bearing deposits	516,431	461,479
Interest bearing deposits	995,208	933,325
Total deposits	1,511,639	1,394,804
Short term FHLB borrowing	10,500	25,000
Long term FHLB borrowing	83,050	70,558
Junior subordinated debentures	13,338	13,233
Other liabilities	7,770	8,592
Total liabilities	1,626,297	1,512,187
Shareholders' equity
Preferred stock, 5,000,000 shares authorized: Series C preferred stock, $3.25 per share stated value; issued and outstanding: 0 shares and 348,697 shares at June 30, 2015 and December 31, 2014, respectively		1,056
Common stock, no par value; authorized: 100,000,000 shares; issued and outstanding: 34,314,242 shares and 33,905,060 shares at June 30, 2015 and December 31, 2014, respectively	165,415	164,196
Additional paid in capital	7,658	6,984
Retained earnings	28,800	24,772
Accumulated other comprehensive income, net of tax of $152 and $677 as of June 30, 2015 and December 31, 2014, respectively	209	932
Total shareholders' equity	202,082	197,940
Total liabilities and shareholders' equity	$ 1,828,379	$ 1,710,127

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Preferred stock
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, per share stated value (in dollars per share)	$ 3.25	$ 3.25
Preferred stock, shares issued	0	348,697
Preferred stock, shares outstanding	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	34,314,242	33,905,060
Common stock, shares outstanding	34,314,242	33,905,060
Accumulated other comprehensive loss, tax expense (in dollars)	$ 152	$ 677

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest Income
Loans, including fees	$ 14,585	$ 14,547	$ 29,673	$ 26,403
Investment securities	1,662	1,819	3,329	3,409
Other interest-earning assets	494	175	667	331
Total interest income	16,741	16,541	33,669	30,143
Interest Expense
Deposits	918	928	1,807	1,743
Other borrowings	581	416	1,122	752
Total interest expense	1,499	1,344	2,929	2,495
Net interest income before provision for loan losses	15,242	15,197	30,740	27,648
Net interest income after provision for loan and lease losses	15,242	15,197	30,740	27,648
Non-Interest Income
Fees and service charges	1,213	1,394	2,420	2,539
Net gain on sale of mortgage loans	484	364	870	552
Other mortgage fee income	118	105	256	159
Gain on sale of investment securities		101	505	99
Other income	456	512	1,221	877
Total non-interest income	2,271	2,476	5,272	4,226
Non-Interest Expense
Salaries and employee benefits	5,786	6,340	12,045	11,957
Occupancy and equipment	1,748	1,748	3,335	3,213
Professional services	1,702	1,038	3,108	1,771
Information technology	541	952	1,142	1,647
Regulatory assessments	300	307	597	511
Sales and marketing	295	190	612	363
Amortization of intangible assets	262	297	524	463
Loan department expense	260	285	546	461
Communication costs	144	161	285	267
Merger, restructure, and integration	(2)	922	30	8,037
Other expense	393	746	1,018	1,334
Total non-interest expense	11,429	12,986	23,242	30,024
Income before income taxes	6,084	4,687	12,770	1,850
Income tax expense	2,284	1,738	4,901	664
Net income	3,800	2,949	7,869	1,186
Dividends and accretion on preferred stock	70		70
Net income available to common shareholders	$ 3,730	$ 2,949	$ 7,799	$ 1,186
Earnings Per Common Share
Basic (in dollars per share)	$ 0.11	$ 0.09	$ 0.23	$ 0.04
Diluted (in dollars per share)	0.11	$ 0.09	0.23	$ 0.04
Dividends Declared Per Common Share (in dollars per share)	$ 0.06		$ 0.11

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 3,800	$ 2,949	$ 7,869	$ 1,186
Other comprehensive (loss) income, net of tax:
Unrealized holding (losses) gains on securities arising during the period	(3,498)	2,422	(743)	5,223
Reclassification for net (gains) loss on investments included in net income		(101)	(505)	(99)
Other comprehensive (loss) income, before income tax (benefit) expense	(3,498)	2,321	(1,248)	5,124
Income tax (benefit) expense related to items of other comprehensive income	(1,471)	955	(525)	2,109
Other comprehensive (loss) income	(2,027)	1,366	(723)	3,015
Comprehensive income	$ 1,773	$ 4,315	$ 7,146	$ 4,201

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Total
Balance at Dec. 31, 2013	$ 3,604	$ 101,511	$ 6,020	$ 18,717	$ (3,425)	$ 126,427
Balance (in shares) at Dec. 31, 2013		25,397,780
Increase (Decrease) in Stockholders' Equity
Issuance of common stock in MISN Transaction		$ 60,255				60,255
Issuance of common stock in MISN Transaction (in shares)		7,541,326
Stock issuance costs			(290)			(290)
Exercise of stock options		$ 132				132
Exercise of stock options (in shares)		38,617
Share-based compensation			466			466
Tax benefit of share-based compensation			14			14
Net issuance of restricted share awards (in shares)		54,713
Net income				1,186		1,186
Other comprehensive income (loss)					3,015	3,015
Balance at Jun. 30, 2014	3,604	$ 161,898	6,210	19,903	(410)	191,205
Balance (in shares) at Jun. 30, 2014		33,032,436
Balance at Dec. 31, 2014	1,056	$ 164,196	6,984	24,772	932	197,940
Balance (in shares) at Dec. 31, 2014		33,905,060
Increase (Decrease) in Stockholders' Equity
Dividends declared ($0.11 per share for period ended June 30, 2015)				(3,771)		(3,771)
Repurchases of common stock		$ (28)				(28)
Repurchases of common stock (in shares)		(3,696)
Exercise of stock options		$ 191				191
Exercise of stock options (in shares)		40,344
Partial conversion of Series C preferred stock	$ (1,056)	$ 1,056	70	(70)
Partial conversion of Series C preferred stock (in shares)		348,697
Share-based compensation			535			535
Tax benefit of share-based compensation			69			69
Net issuance of restricted share awards (in shares)		23,837
Net income				7,869		7,869
Other comprehensive income (loss)					(723)	(723)
Balance at Jun. 30, 2015		$ 165,415	$ 7,658	$ 28,800	$ 209	$ 202,082
Balance (in shares) at Jun. 30, 2015		34,314,242

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - Jun. 30, 2015 - $ / shares	Total	Total
Condensed Consolidated Statements of Shareholders' Equity
Dividends Declared Per Common Share (in dollars per share)	$ 0.06	$ 0.11

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities:
Net income	$ 7,869	$ 1,186
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,005	938
Write-downs on premises and equipment held for sale	138	799
Amortization of premiums / discounts	3,116	2,283
Amortization of intangible assets	524	463
Accretion of discount on acquired and purchased loans, net	(1,202)	(1,343)
Share-based compensation expense	535	466
Gain on sale of available for sale securities	(505)	(99)
Gain on sale of assets	(10)	(18)
Gain on sale of loans held for sale	(870)	(552)
Originations of loans held for sale	(76,630)	(40,674)
Proceeds from sale of loans held for sale	71,350	35,203
Net increase in bank owned life insurance	(321)	(294)
Decrease in deferred tax asset	2,265	3,170
Tax impact of share-based compensation	(69)	(14)
Decrease in other assets and other liabilities, net	1,073	913
Net cash provided by operating activities	8,268	2,427
Cash Flows from Investing Activities:
Net cash and cash equivalents acquired in MISN Transaction		28,298
Purchase of securities, available for sale	(97,489)	(103,232)
Sale of securities, available for sale	46,528	78,389
Proceeds from principal paydowns of available for sale securities	22,941	21,157
Proceeds from sale of premises and equipment	9	1,170
Purchase of FHLB stock		(941)
Decrease in loans, net	2,591	10,507
Recoveries on previously charged-off loans	417	540
Proceeds from sale of foreclosed collateral	49	231
Purchase of property, premises and equipment, net	(1,191)	(2,689)
Net cash (used in) provided by investing activities	(26,145)	33,430
Cash Flows from Financing Activities:
Increase in deposits, net	116,849	48,805
Proceeds from Federal Home Loan Bank borrowing	36,000	15,000
Repayments of Federal Home Loan Bank borrowing	(38,000)	(42,000)
Proceeds from exercise of stock options including tax benefits	260	146
Stock issuance costs		(290)
Dividends paid	(3,771)
Repurchases of common stock	(28)
Net cash provided by financing activities	111,310	21,661
Net increase in cash and cash equivalents	93,433	57,518
Cash and cash equivalents, beginning of period	35,580	26,238
Cash and cash equivalents, end of period	129,013	83,756
Cash Flow Information
Interest paid	2,860	2,420
Income taxes paid	560	600
Non-Cash Flow Information
Change in unrealized (loss) gain on available for sale securities	(743)	5,223
Loans transferred to foreclosed assets	416	396
Premises transferred to held for sale		1,730
Accretion of preferred stock discount	$ 70
Common stock issued in MSN Transaction		$ 60,255

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Description of Business Heritage Oaks Bancorp (“Bancorp”) is a California corporation organized in 1994 to act as the holding company for Heritage Oaks Bank (the “Bank”), which opened for business in 1983. The Bank, which is the Company’s sole operating subsidiary, operates branches within San Luis Obispo and Santa Barbara Counties and has a loan production office in Ventura County. The Bank offers traditional banking products such as checking, savings, money market accounts and certificates of deposit, as well as mortgage, commercial, and consumer loans to customers who are predominately small to medium-sized businesses and to individuals. As such, the Company is subject to a concentration risk associated with its banking operations in San Luis Obispo and Santa Barbara Counties, and to a lesser degree Ventura County. No one customer accounts for more than 10% of revenue or assets in any period presented and the Company has no assets nor does it generate any revenue from outside of the United States. While the chief decision-makers of the Company monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for annual financial statements are not included herein. In the opinion of management, all adjustments (which consist solely of normal recurring accruals) considered necessary for a fair presentation of results for the interim periods presented have been included. These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes contained in the Company’s 2014 Annual Report filed on Form 10-K with the Securities and Exchange Commission on March 6, 2015; file number 000-25020 . The condensed consolidated financial statements include the accounts of Bancorp and its wholly-owned financial subsidiary, Heritage Oaks Bank. All significant inter-company balances and transactions have been eliminated. On February 28, 2014, the Company acquired 100% of the outstanding common shares of Mission Community Bancorp (“MISN”). MISN’s results of operations are included in the Company’s results of operations beginning March 1, 2014. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Investment in Non-Consolidated Subsidiaries The Company accounts for its investment in Heritage Oaks Capital Trust II, Mission Community Capital Trust I, and Santa Lucia Bancorp (CA) Capital Trust, as unconsolidated subsidiaries using the equity method of accounting, as the Company is not the primary beneficiary of the trust. Mission Community Capital Trust I and Santa Lucia Bancorp (CA) Capital Trust were acquired as part of the acquisition of Mission Community Bancorp on February 28, 2014. The sole purpose of each of these trusts is for the issuance of trust preferred securities. Reclassifications Certain items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. Use of Estimates in the Preparation of Condensed Consolidated Financial Statements The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and general practices within the banking industry require management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant Accounting Policies The significant accounting policies that the Company applies are detailed in Note 1. Summary of Significant Accounting Policies, of the Company’s 2014 Annual Report filed on Form 10-K. There have been no changes to these policies or their application during the three or six months ended June 30, 2015. Recent Accounting Standards Updates Recent Accounting Guidance Adopted In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-14 Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure . This update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The amendments within this update are effective for interim and annual periods, beginning after December 15, 2014. The adoption of this Update did not have a material impact on the Company’s consolidated financial statements. On January 17, 2014, the FASB issued ASU No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors . This ASU provides clarification that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for interim and annual periods, beginning after December 15, 2014. The adoption of this Update did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Guidance Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This Update requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The amendments within this update are effective for the quarter ending March 31, 2018. The Company is currently in the process of evaluating the impact of the adoption of this Update, but does not expect a material impact on the Company’s consolidated financial statements.

Business Combination

Business Combination	6 Months Ended
	Jun. 30, 2015
Business Combination
Business Combination	Note 2. Business Combination On February 28, 2014, the Company acquired 100% of the outstanding common shares of Mission Community Bancorp (“MISN”) and all unexercised warrants and options to purchase MISN common stock were cancelled, in exchange for 7,541,326 shares of the Company’s common stock and $8.7 million in cash (the “MISN Transaction”). In conjunction with the merger, MISN’s wholly-owned bank subsidiary, Mission Community Bank, was merged with and into Heritage Oaks Bank. The transaction was valued at $69.0 million, based on the Company’s closing stock price of $7.99 on February 28, 2014. With the acquisition, the Company believes it has created a more valuable community banking franchise, with a low-cost core deposit base, strong capital ratios, attractive net interest margins, lower operating costs, and better overall returns for the shareholders of the combined company. The Company also believes it now has a banking platform that is well positioned for future growth, both organically and through acquisitions. The operating results for MISN are included in the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2015, and from March 1, 2014 through June 30, 2014. As of December 31, 2014, adjustments to the fair value of assets acquired and liabilities assumed in the MISN Transaction were complete. The following table presents unaudited pro forma financial information for the three and six months ended June 30, 2014, as if the MISN Transaction were reflected in the Company’s operating results beginning on January 1, 2013. The unaudited pro forma information includes adjustments for interest income on loans and securities acquired, amortization of intangibles arising from the transaction, depreciation expense on property acquired, interest expense on deposits and borrowings acquired, and the related income tax effects. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed date. Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 (dollars in thousands, except per share data) Net interest income $ $ Provision for loan and lease losses - - Non-interest income Non-interest expense Income before income taxes Income tax expense Net income $ $ Earnings Per Common Share Basic $ $ Diluted $ $

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
	Jun. 30, 2015
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	Note 3. Fair Value of Assets and Liabilities Recurring Basis The following table provides a summary of the assets the Company measures at fair value on a recurring basis: Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant June 30, 2015 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Obligations of U.S. government agencies $ $ - $ $ - Mortgage backed securities: U.S government sponsored entities and agencies - - Non-agency - - State and municipal securities - - Asset backed securities - - Total assets measured on a recurring basis $ $ - $ $ - Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant December 31, 2014 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Obligations of U.S. government agencies $ $ - $ $ - Mortgage backed securities: U.S government sponsored entities and agencies - - Non-agency - - State and municipal securities - - Asset backed securities - - Total assets measured on a recurring basis $ $ - $ $ - Non-recurring Basis The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets and liabilities that are measured at the lower of cost or fair value, and were measured at fair value which was below cost. Certain impaired loans measured at fair value at December 31, 2014 are no longer recorded at fair value due to the borrower payments reducing the carrying value of these loans to less than fair value, and due to other impaired loans being evaluated under the discounted cash flow method versus the collateral method. The discounted cash flow method as prescribed by ASC 310 Receivables , is not a fair value measurement since the discount rate utilized is the loan’s effective interest rate, which is not a market rate. The discounted cash flow approach is used to measure impairment for certain impaired loans, because of their significant payment history and the global cash flow analysis performed on each borrower. The following tables provide a summary of assets the Company measures at fair value on a non-recurring basis: Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant June 30, 2015 Active Markets for Observable Unobservable Year To Assets At Identical Assets Inputs Inputs Date Losses Fair Value (Level 1) (Level 2) (Level 3) (Recoveries) (dollars in thousands) Assets Impaired loans: Land $ $ - $ - $ $ ) Total assets measured on a non-recurring basis $ $ - $ - $ $ ) Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant December 31, 2014 Active Markets for Observable Unobservable Year To Assets At Identical Assets Inputs Inputs Date Losses Fair Value (Level 1) (Level 2) (Level 3) (Recoveries) (dollars in thousands) Assets Impaired loans: Commercial real estate $ $ - $ - $ $ Land - - ) Total assets measured on a non-recurring basis $ $ - $ - $ $ There were no transfers into or out of Level 1 or Level 2 assets reported at fair value on either a recurring or non-recurring basis during the three or six months ended June 30, 2015. Fair Value of Financial Instruments The following table provides a summary of the estimated fair value of financial instruments: Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant June 30, 2015 Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Fair Value (dollars in thousands) Assets Cash and cash equivalents $ $ $ - $ - $ Investment securities available for sale - - Federal Home Loan Bank stock - - - N/A Loans receivable, net of deferred fees and costs - - Loans held for sale - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Accrued interest payable - - Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant December 31, 2014 Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Fair Value (dollars in thousands) Assets Cash and cash equivalents $ $ $ - $ - $ Investment securities available for sale - - Federal Home Loan Bank stock - - - N/A Loans receivable, net of deferred fees and costs - - Loans held for sale - - Accrued interest receivable - Liabilities Non interest-bearing deposits - - Interest-bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Accrued interest payable - - Information on off-balance-sheet instruments follows: June 30, 2015 December 31, 2014 Notional Cost to Cede Notional Cost to Cede Amount or Assume Amount or Assume (dollars in thousands) Off-balance sheet instruments, commitments to extend credit and standby letters of credit $ $ $ $

Investment Securities

Investment Securities	6 Months Ended
	Jun. 30, 2015
Investment Securities
Investment Securities	Note 4. Investment Securities The following table sets forth the amortized cost and fair values of the Company’s investment securities, all of which are reported as available for sale: June 30, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Loss Value (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency - State and municipal securities Asset backed securities - Total available for sale securities $ $ $ $ December 31, 2014 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Loss Value (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities Asset backed securities - Total available for sale securities $ $ $ $ The following table provides a summary of investment securities in an unrealized loss position: June 30, 2015 Less Than Twelve Months Twelve Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Obligations of U.S. government agencies $ $ $ - $ - $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency - - State and municipal securities Asset backed securities - - Total $ $ $ $ $ $ December 31, 2014 Less Than Twelve Months Twelve Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities Asset backed securities - - Total $ $ $ $ $ $ A total of 109 securities were in an unrealized loss position as of June 30, 2015, and 57 as of December 31, 2014. As of June 30, 2015, the Company believes that unrealized losses in its investment securities portfolio are not attributable to credit quality, but rather fluctuations in market prices for these investments. In the case of the agency mortgage related securities, they have contractual cash flows guaranteed by agencies of the U.S. Government. While the Company’s investment security holdings have contractual maturity dates that range from 1 to 40 years, they have a much shorter effective duration dependent on the instrument’s priority in the overall cash flow structure and the characteristics of the loans underlying the investment security. Management does not intend to sell and it is unlikely that management will be required to sell the securities prior to their anticipated recovery in value. As of June 30, 2015, the Company does not believe unrealized losses related to any of its securities are other than temporary. Sales of Available for Sale Securities The proceeds from the sale of securities and the associated gains and losses are listed below: For Three Months Ended For Six Months Ended June 30, June 30, 2015 2014 2015 2014 (dollars in thousands) Proceeds $ - $ $ $ Gross gains - Gross losses - ) Income tax expense on net realized gains from the sale of investment securities for the three months ended June 30, 2014 was $42 thousand. The Company made no sales of investment securities during the three months ended June 30, 2015. Income tax expense related to net realized gains on the sale of securities was $212 thousand and $41 thousand for the six months ended June 30, 2015 and 2014, respectively. Maturities of Available for Sale Securities The amortized cost and fair value maturities of available for sale investment securities at June 30, 2015 are shown below. The table reflects the expected lives of mortgage backed securities, based on the Company’s historical prepayment experience, because borrowers who are party to loans underlying these securities may have the right to prepay obligations without prepayment penalties. Therefore actual maturities may differ from contractual maturities. Contractual maturities are reflected for all other security types. June 30, 2015 December 31, 2014 Amortized Amortized Cost Fair Value Cost Fair Value (dollars in thousands) Due one year or less $ $ $ $ Due after one year through five years Due after five years through ten years Due after ten years Total $ $ $ $ Securities having an amortized cost and a fair value of $135.2 million and $136.2 million, respectively, at June 30, 2015, and $67.3 million and $72.5 million, respectively, at December 31, 2014 were pledged to secure public deposits. As of June 30, 2015 and December 31, 2014, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of total securities. The following table summarizes earnings on both taxable and tax-exempt investment securities: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (dollars in thousands) Taxable earnings on investment securities Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities State and municipal securities Corporate debt securities - - Asset backed securities Non-taxable earnings on investment securities State and municipal securities Total $ $ $ $

Loans and Allowance for Loan an

Loans and Allowance for Loan and Lease Losses	6 Months Ended
	Jun. 30, 2015
Loans and Allowance for Loan and Lease Losses
Loans and Allowance for Loan and Lease Losses	Note 5. Loans and Allowance for Loan and Lease Losses The following table provides a summary of outstanding loan balances: June 30, 2015 December 31, 2014 Non-PCI PCI Non-PCI PCI Loans Loans Total Loans Loans Total (dollars in thousands) Real Estate Secured Commercial $ $ $ $ $ $ Residential 1 to 4 family Farmland - Multi-family residential - - Home equity lines of credit - - Construction - - Land Total real estate secured Commercial Commercial and industrial Agriculture Other - - Total commercial Installment - - Overdrafts - - Total gross loans held for investment Net deferred loan fees - - Allowance for loan and lease losses - Total net loans held for investment $ $ $ $ $ $ Loans held for sale $ $ - $ $ $ - $ At June 30, 2015, and December 31, 2014, the loan portfolio includes loans purchased with evidence of deterioration in credit quality since their origination, referred to as “PCI loans,” and are specifically accounted for under ASC 310-30, as more fully discussed in Note 1. Summary of Significant Accounting Policies of the consolidated financial statements in the Company’s 2014 annual report filed on Form 10-K. These loans were acquired as part of the MISN Transaction. All other loans, referred to as “non-PCI loans,” consist of originated loans, as well as acquired and purchased loans which have not exhibited evidence of deteriorated credit quality since their origination. Non-PCI loans are not accounted for within the scope of ASC 310-30. Gross loans include $202.2 million and $239.7 million of loans acquired in the MISN Transaction at June 30, 2015 and December 31, 2014, respectively. These loans were recorded at fair value on the date of acquisition. Of the loans acquired in the MISN transaction, $9.7 million and $10.3 million at June 30, 2015 and December 31, 2014, respectively, are considered PCI loans. Loans held for sale are primarily single-family residential mortgage loans under contract to be sold in the secondary market. In most cases, loans in this category are sold within thirty to sixty days. Under a blanket lien to the Federal Home Loan Bank (“FHLB”), the Bank has pledged $593.2 million in loans to secure a credit facility totaling $394.8 million, of which $93.5 million is outstanding as of June 30, 2015. Of this credit facility, $11.5 million is available as a line of credit, while the remainder is available for potential future borrowings. The Bank also has a collateralized borrowing line with the Federal Reserve Bank secured by $7.0 million of loans as of June 30, 2015. Concentration of Credit Risk The Company held loans that were collateralized by various forms of real estate totaling $993.1 million and $978.2 million at June 30, 2015 and December 31, 2014, respectively. These loans are generally made to borrowers located in the counties of San Luis Obispo, Santa Barbara and Ventura. The Company attempts to reduce its concentration of credit risk by making loans which are diversified by product type. While management believes that the collateral presently securing this portfolio is adequate, there can be no assurances that deterioration in the California real estate market, or the impact of the current California drought on our real estate collateralized loans, would not expose the Company to significantly greater credit risk. Loans Serviced for Others Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of loans serviced for others, exclusive of Small Business Administration (“SBA”) loans, was $43.4 million at June 30, 2015 and $44.8 million at December 31, 2014. From time to time, the Company also originates SBA loans for sale and retains the servicing of the guaranteed portion of the loan sold. At June 30, 2015 and December 31, 2014, the unpaid principal balance of SBA loans serviced for others totaled $10.2 million and $13.0 million, respectively. No gains were recorded on the sale of SBA loans during the three or six months ended June 30, 2015 and 2014. Impaired Loans The following tables provide a summary of the Company’s recorded investment in non-PCI and PCI impaired loans as of June 30, 2015, and presents average balances and interest income recognized for non-PCI and PCI impaired loans for the three and six months ended June 30, 2015. For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 June 30, 2015 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ Land - Residential 1 to 4 family - Farmland - Home equity lines of credit - - - Commercial Commercial and industrial - Agriculture - Installment - Total - With Related Allowance Real Estate Secured Land - - Commercial - - Commercial Commercial and industrial Total Total Non-PCI impaired loans $ $ $ $ $ $ $ For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 June 30, 2015 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ Land - Residential 1 to 4 family - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Land Residential 1 to 4 family Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ $ $ The following table provides a summary of the Company’s recorded investment in non-PCI and PCI impaired loans as of December 31, 2014, and presents average balances and interest income recognized for non-PCI and PCI impaired loans for the three and six months ended June 30, 2014. For the Three Months Ended For the Six Months Ended December 31, 2014 June 30, 2014 June 30, 2014 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ Land - Farmland - Residential 1 to 4 family - Home equity lines of credit - - - Commercial Commercial and industrial - Agriculture - - - Installment - Total - With Related Allowance Real Estate Secured Land Commercial - - - - Commercial Commercial and industrial Total Total Non-PCI impaired loans $ $ $ $ $ $ $ For the Three Months Ended For the Six Months Ended December 31, 2014 June 30, 2014 June 30, 2014 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ Farmland - Land - Residential 1 to 4 family - Home equity lines of credit - - - Commercial Agriculture - Commercial and industrial - Total PCI loans $ $ $ - $ $ $ $ The Company did not record income from the receipt of cash payments related to non-accruing loans during the three and six months ended June 30, 2015 and 2014. Interest income recognized on impaired loans in the tables above represents interest on accruing troubled debt restructurings, and accretion on PCI loans. Valuation allowances for impaired loans have been determined on a loan-by-loan basis. At June 30, 2015, there were no residential 1 to 4 family loans in process of foreclosure, or residential 1 to 4 family properties included in foreclosed assets. Troubled Debt Restructurings (“TDR”) The following table provides a summary of loans that were classified as TDRs as of the dates indicated below: June 30, 2015 December 31, 2014 Accrual Non-accrual Total Accrual Non-accrual Total (dollars in thousands) Non-PCI Loans Real Estate Secured Land $ $ $ $ $ $ Commercial Residential 1 to 4 family - Farmland - - Commercial Commercial and industrial Agriculture - - Installment - - Total non-PCI loans PCI Loans Real Estate Secured Commercial - Land - - - - Commercial Commercial and industrial Total PCI loans Total TDRs $ $ $ $ $ $ The majority of the Bank’s TDRs resulted from granting concessions with respect to interest rates, payment structure and/or maturity. Modifications for the three and six months ended June 30, 2015, and 2014 relate to extensions of the maturity date at the loan’s original interest rate, which was lower than the current market rate for new debt with similar risk. The maturity date extensions granted were for periods ranging from 6 months to 10 years. As of June 30, 2015, the Company was not committed to lend any additional funds to borrowers whose obligations to the Company were restructured. The financial effects of modifications for the three and six months ended June 30, 2015, and 2014 were not material. The following tables summarize loan modifications which resulted in TDRs during the periods presented below: For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded of TDRs Investment Investment of TDRs Investment Investment (dollars in thousands) Non-PCI Loans Real Estate Secured Residential 1 to 4 family $ $ $ $ Commercial Farmland Land Commercial Commercial and industrial Agriculture - - - Installment - - - PCI Loans Real Estate Secured Commercial Land Total $ $ $ $ For the Three Months Ended For the Six Months Ended June 30, 2014 June 30, 2014 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded of TDRs Investment Investment of TDRs Investment Investment (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial - $ - $ - $ $ Land Commercial Commercial and industrial Agriculture - - - Installment - - - PCI Loans Real Estate Secured Commercial Commercial Commercial and industrial Total $ $ $ $ The following tables summarizes loans that were modified as troubled debt restructurings within the twelve months prior to the balance sheet date, and for which there was a payment default during the periods presented below: For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Commercial Commercial and industrial - $ - $ Total - $ - $ For the Three Months Ended For the Six Months Ended June 30, 2014 June 30, 2014 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Commercial Commercial and industrial $ $ Total $ $ Credit Quality The following tables stratify loans held for investment by the Company’s internal risk grading system: June 30, 2015 Credit Risk Grades Special Pass Mention Substandard Doubtful Total (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial $ $ $ $ - $ Residential 1 to 4 family - - Farmland - - Multi-family residential - Home equity lines of credit - Construction - - - Land - Commercial Commercial and industrial - Agriculture - Other - - - Installment - - Overdrafts - - - Total non-PCI loans - PCI Loans Real Estate Secured Commercial - - Land - Residential 1 to 4 family - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $ December 31, 2014 Credit Risk Grades Special Pass Mention Substandard Doubtful Total (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial $ $ $ $ - $ Residential 1 to 4 family - Farmland - Multi-family residential - - Home equity lines of credit - - Construction - - - Land - - Commercial Commercial and industrial Agriculture - Other - - - Installment - - Overdrafts - - - Total non-PCI loans PCI Loans Real Estate Secured Commercial - Farmland - - - Land - - Residential 1 to 4 family - - - Commercial Agriculture - - - Commercial and industrial Total PCI loans Total loans held for investment $ $ $ $ $ Aging of Loans Held for Investment The following tables summarize the aging of loans held for investment as of the dates indicated below: June 30, 2015 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing Total (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - Farmland - - - - Multi-family residential - - - - Home equity lines of credit - - - Construction - - - - Land - - - Commercial Commercial and industrial - - Agriculture - - - Other - - - - Installment - - - Overdrafts - - - - Total non-PCI loans - - PCI Loans Real Estate Secured Commercial - - - Land - - - - Residential 1 to 4 family - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ - $ - $ $ December 31, 2014 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing Total (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - Farmland - - - - Multi-family residential - - - - Home equity lines of credit - - - Construction - - - - Land - - - Commercial Commercial and industrial - - Agriculture - - - Other - - - - Installment - Overdrafts - - - - Total non-PCI loans - PCI Loans Real Estate Secured Commercial - - - - Farmland - - - - Land - - - - Residential 1 to 4 family - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ $ - $ $ Purchased Credit Impaired Loans As part of the MISN Transaction , disclosed in Note 2. Business Combination, the Company acquired certain loans which have exhibited evidence of credit deterioration since their origination. The carrying amount and unpaid principal balance of these loans are as follows: June 30, 2015 December 31, 2014 Unpaid Principal Balance Carrying Amount Unpaid Principal Balance Carrying Amount (dollars in thousands) Real Estate Secured Commercial $ $ $ $ Land Residential 1 to 4 family Farmland - - Total real estate secured Commercial Commercial and industrial Agriculture Total commercial Total PCI loans $ $ $ $ The following table summarizes the accretable yield, or income expected to be collected for PCI loans: For the Six Months Ended June 30, 2015 (dollars in thousands) Balance, December 31, 2014 $ Accretion of income ) Reclassifications from nonaccretable difference (1) Balance, June 30, 2015 $ (1) Reclassification from nonaccretable difference is attributable to positive changes in expected future cash flows on certain PCI loans. Allowance for Loan and Lease Losses The following table summarizes the activity in the allowance for loan and lease losses by portfolio segment for the periods presented below: For the Three Months Ended June 30, 2015 Balance March 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Land - Installment All other loans - - Unallocated Total $ $ $ $ - $ For the Six Months Ended June 30, 2015 Balance December 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Land Installment All other loans - - Unallocated Total $ $ $ $ - $ For the Three Months Ended June 30, 2014 Balance March 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2014 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Land - Installment All other loans - - Unallocated Total $ $ $ $ - $ For the Six Months Ended June 30, 2014 Balance December 31, 2013 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2014 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Land - Installment All other loans - - Unallocated Total $ $ $ $ - $ The following tables disaggregate the allowance for loan and lease losses and the recorded investment in loans by impairment methodology as of the dates presented below: June 30, 2015 Allowance for Loan and Lease Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality (dollars in thousands) Other real estate secured $ $ $ $ $ $ Commercial Land Installment - - - All other loans - - - - Unallocated - - Total $ $ $ $ $ $ December 31, 2014 Allowance for Loan and Lease Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality (dollars in thousands) Other real estate secured $ $ $ - $ $ $ Commercial - Land - Installment - - - All other loans - - - - Unallocated - - Total $ $ $ - $ $ $ At June 30, 2015, total gross loans of $1.2 billion in the table above include $202.2 million of loans acquired through the MISN Transaction. These loans were initially recorded at fair value, and had no related ALLL on the acquisition date. The ALLL for acquired non-PCI loans at June 30, 2015 and December 31, 2014 was $0.8 million, and $1.0 million, respectively, and is the result of determining, through the Company’s ALLL methodology, that the existing discount for acquired non-PCI loans was no longer deemed sufficient to cover probable losses incurred in particular segments of the loan portfolio, specifically commercial and industrial, other real estate secured, and installment loans. The incremental ALLL allocation for acquired non-PCI loans was not driven by deterioration in credit quality; rather due to the relatively fast accretion of purchase discounts attributable to these segments of the acquired loan portfolio. The ALLL allocated to acquired non-PCI loans is included in the ALLL attributable to loans collectively evaluated for impairment in the tables above. The ALLL for PCI loans was $91 thousand at June 30, 2015, and resulted from unfavorable changes in expected future cash flows on certain PCI loans. There was no ALLL for PCI loans at December 31, 2014.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	Note 6. Income Taxes Deferred tax assets relate to amounts that are expected to be realized through subsequent reversals of existing temporary differences over the period they are expected to reverse. The ultimate realization of the Company’s deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are expected to reverse. U.S. GAAP requires that companies assess whether a valuation allowance should be established against deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. In making such judgments, significant weight is given to evidence, both positive and negative, that can be objectively verified. At June 30, 2015 and December 31, 2014 there was no valuation allowance for the Company’s deferred tax assets. The Company’s deferred tax assets totaled $23.2 million at June 30, 2015, and $24.9 million at December 31, 2014. The Company is subject to income taxation by both federal and state taxing authorities. Income tax returns for the years ended December 31, 2014, 2013, 2012, 2011, and 2010 are open to audit by federal and state taxing authorities. The Company does not have any uncertain income tax positions and has not accrued for any interest or penalties as of June 30, 2015 and December 31, 2014. Management assessed the impact of the MISN Transaction for limitations under I.R.C. Section 382 and determined that, given the assumption that the Company generates sufficient future taxable income to utilize NOLs, no loss of NOL utilization would result from the estimated annual I.R.C. Section 382 base limitation resulting from the transaction. Furthermore, due to the fact that MISN was in a net unrealized built-in gain position (“NUBIG”) the Company’s annual I.R.C. Section 382 limitation will likely increase over the next five years for realized built-in gains (“RBIG”).

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2015
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	Note 7. Goodwill and Other Intangible Assets At June 30, 2015 and December 31, 2014 the balance of goodwill was $24.9 million. Other intangible assets consist of core deposit intangibles (“CDI”), which are attributable to the acquisition of core deposit balances, including those acquired in the MISN Transaction. CDI assets are subject to amortization. At June 30, 2015 and December 31, 2014 the balance of CDI was $4.8 million, and $5.3 million, respectively. Amortization of CDI for the six months ended June 30, 2015 and 2014 was approximately $0.5 million during both periods. The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount of CDI as of June 30, 2015, and provides an estimate for future amortization for 2015 and the next five years: June 30, 2015 Gross Carrying Accumulated Net Carrying Amount Amortization Amount (dollars in thousands) Core deposit intangibles $ $ $ June 30, 2015 Beginning Balance Estimated Remaining Amortization Projected Ending Balance (dollars in thousands) Period Year 2015 $ $ $ Year 2016 Year 2017 Year 2018 Year 2019 Year 2020

Share-based Compensation Plans

Share-based Compensation Plans	6 Months Ended
	Jun. 30, 2015
Share-based Compensation Plans
Share-based Compensation Plans	Note 8. Share-Based Compensation Plans As of June 30, 2015, the Company had one active share-based employee compensation plan, which was approved by the Company’s shareholders in May 2015. This plan, referred to as the “2015 Equity Incentive Plan,” authorizes the Company to grant various types of share-based compensation awards to the Company’s employees and Board of Directors such as stock options, and restricted stock awards. Under the 2015 Equity Incentive Plan a maximum of 2,500,000 shares of the Company’s common stock may be issued. Shares issued under this plan, other than stock options and stock appreciation rights, are counted against the plan on a two shares for every one share actually issued basis. Awards that are cancelled, expired, forfeited, fail to vest, or otherwise result in issued shares not being delivered to the grantee, are again made available for the issuance of future share-based compensation awards. Additionally, under this plan, no one individual may be granted shares in aggregate that exceed more 250,000 shares during any calendar year. The Company’s Board of Directors may terminate the 2015 Equity Incentive Plan at any time, and for any reason before the plan expires on December 3, 2024. The Company also has two non-active share-based compensation plans, which are more fully described in Note 12. Share-Based Compensation Plans, of the condensed consolidated financial statements in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2014. These plans include the “1997 Stock Option Plan” and the “2005 Equity Based Compensation Plan.” As of June 30, 2015 no further grants can be made from either of these plans. The following table provides a summary of the expenses the Company has recognized related to share-based compensation for the periods indicated below: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (dollars in thousands) Share-based compensation expense: Stock options $ $ $ $ Restricted stock Total expense $ $ $ $ Unrecognized compensation expense: Stock options $ $ Restricted stock Total unrecognized expense $ $ At June 30, 2015 unrecognized compensation expense related to non-vested stock options and restricted stock awards is expected to be recognized over weighted average periods of 2.7 years and 2.4 years, respectively. Restricted Stock Awards The Company grants restricted stock periodically for the benefit of employees. Restricted stock issued typically vests ratably over a period of three to five years depending on the specific terms of the grant. Restricted stock grants may be subject to the achievement of certain performance goals. Compensation costs related to restricted stock awards are charged to earnings, included in salaries and employee benefits, over the vesting period of those awards. The fair value of performance-based grants is initially based on the assumption that performance goals will be achieved. If such performance conditions are not met, no compensation cost is recognized and previously-recognized compensation cost is reversed. The following table provides a summary of activity related to restricted stock granted, vested and forfeited: Number of Average Grant Shares Date Fair Value Balance December 31, 2014 $ Granted Vested Forfeited Balance June 30, 2015 $ Included in the table above are performance-based grants of restricted stock totaling 23,408 shares as of June 30, 2015. Stock Options Stock options are granted periodically for the benefit of employees. The fair value of each stock option award is determined on the date of grant using the Black-Scholes option valuation model, which uses assumptions outlined in the table above. Expectations for volatility are based on the historical volatility of the Company’s common stock. The Company estimates forfeiture rates based on historical employee option exercise and termination experience. The Company recognizes share-based compensation costs on a straight line basis over the vesting period of the award, which is typically a period of three to five years. The following table presents the assumptions used in the calculation of the weighted average fair value of options granted during the periods presented: For the Six Months Ended June 30, 2015 2014 Expected volatility Expected term (years) Dividend yield Risk free rate Weighted-average grant date fair value $ $ The following table provides a summary of activity related to options granted, exercised, and forfeited during the six months ended June 30, 2015: Options Outstanding Options Number Weighted Average Available for of Shares Exercise Price Grant (1) Balance, December 31, 2014 $ Granted Forfeited Exercised Expired Balance, June 30, 2015 $ (1) Shares available for grant as of December 31, 2014 were from the 2005 Equity Based Compensation Plan, which expired in March 2015. As of June 30, 2015, no further grants can be made from that plan. Shares available for grant as of June 30, 2015 are from the 2015 Equity Incentive Plan, which was approved by the Company’s shareholders in May 2015. The following table provides a summary of the aggregate intrinsic value of options vested and expected to vest and exercisable as of June 30, 2015: June 30, 2015 Weighted Average Weighted Remaining Aggregate Average Contractual Life Intrinsic Shares Exercise Price (Years) Value Vested or expected to vest $ $ Exercisable $ $ The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, which is subject to change based on the fair market value of the Company’s stock. The aggregate intrinsic value of options exercised was $139 thousand for the six months ended June 30, 2015.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2015
Shareholders' Equity
Shareholders' Equity	Note 9. Shareholders’ Equity Regulatory Capital In 2013, the Board of Governors of the Federal Reserve System (“FRB”), the FDIC, and the Office of the Comptroller of the Currency (“OCC”) issued final rules under Basel III (the “Basel III Capital Rules”), establishing a new comprehensive framework for regulatory capital for U.S. banking organizations. These rules implement the Basel Committee’s December 2010 proposed framework, certain provisions of the Dodd-Frank Act, and revise the risk-based capital requirements applicable to bank-holding companies, and depository institutions, including the Company. These rules became effective for the Company on January 1, 2015, and are subject to phase-in periods for certain of their components. The significant changes outlined under the Basel III Capital Rules that are applicable to the Company and the Bank include: · A new Common Equity Tier I (“CET I”) capital measure, with a minimum ratio requirement of 4.5% CET I to risk-weighted assets, and for Prompt Corrective Action purposes 6.5% or greater to generally be considered “well-capitalized.” · A capital conservation buffer in addition to CET I of: 0.625% for 2016; 1.25% for 2017; 1.875% for 2018; and 2.5% for 2019. The capital conservation buffer does not begin phasing-in until January 1, 2016. · Changes to the calculation of risk-weighted assets from the current four categories (0%, 20%, 50% and 100%) to a much broader and risk-sensitive number of categories. · The inclusion of certain changes in accumulated other comprehensive income (“AOCI”) in the determination of regulatory capital measures; however, “non-advanced approaches banking organizations,” including the Company and the Bank may make a one-time permanent election, as of January 1, 2015, to exclude these changes in AOCI from the determination of regulatory capital. The Company, including the Bank, has made this election. · An exclusion from CET I of certain items on a phased-in basis, such as deferred tax assets, and intangible assets. When Basel III Capital Rules are fully phased-in on January 1, 2019, the Company and the Bank will also be required to maintain a 2.5% “capital conservation buffer,” which is designed to absorb losses during periods of economic stress. This capital conservation buffer will be comprised entirely of CET I, and will be in addition to minimum risk-weighted asset ratios outlined under the Basel III Capital Rules. If a banking organization fails to hold capital above minimum capital ratios, including the capital conservation buffer, it will be subject to certain restrictions on capital distributions and discretionary bonus payments. The following table sets forth the Company’s and the Bank’s regulatory capital ratios, including those applicable following the implementation of Basel III as of January 1, 2015: Basel III Pre-Basel III Regulatory Regulatory Standard to be Standard to be Well June 30, 2015 Well December 31, 2014 June 30, 2014 Capitalized (1) Company Bank Capitalized (1) Company Bank Company Bank Ratio Common Equity Tier I capital 6.50% N/A N/A N/A N/A N/A Leverage ratio 5.00% 5.00% Tier I capital 8.00% 6.00% Total risk-based capital 10.00% 10.00% (1) Reflects minimum threshold to be considered “well capitalized” under the Prompt Corrective Action framework, specific to depository institutions. Preferred Stock Under its Amended Articles of Incorporation, the Company is authorized to issue up to 5,000,000 shares of preferred stock, in one or more series, having such voting powers, designations, preferences, rights, qualifications, limitations and restrictions as determined by the Board of Directors. On June 4, 2015, the holder of the Company’s Series C Convertible Perpetual Preferred Stock (“Series C Preferred Stock”) completed the exchange of its remaining 348,697 shares of Series C Preferred Stock for shares of the Company’s common stock on a one-for-one exchange ratio basis. As of June 30, 2015, there were no shares of the Company’s Series C Preferred Stock issued and outstanding. The fair market value of the Company’s common stock was higher than the conversion price of $3.25 per share of the Series C Preferred Stock on the date the Company made a firm commitment to issue the Series C Preferred Stock. As a result, the Series C Preferred Stock was issued with a beneficial conversion feature associated with it. In connection with the exchange of all remaining outstanding shares of the Series C Preferred Stock on June 4, 2015, the Company recorded the remaining beneficial conversion feature of $70 thousand during the three months ended June 30, 2015 through a charge to retained earnings. Cash Dividends On March 2, 2015, the Company paid a cash dividend of $0.05 per share to holders of the Company’s common stock and Series C Preferred Stock as of February 16, 2015. On June 1, 2015, the Company paid a cash dividend of $0.06 per share to holders of the Company’s common stock and Series C Preferred Stock as of May 15, 2015. As discussed in Note 13. Subsequent Events, of these condensed consolidated financial statements, on July 22, 2015, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on August 31, 2015, to shareholders of the Company’s common stock as of August 17, 2015. No dividends were paid during the three or six months ended June 30, 2014. Stock Repurchase Program In June 2015, the Company announced it had amended its previously announced agreement for the repurchase of up to $5.0 million of its outstanding common stock pursuant to a written plan compliant with Rule 10b5-1 and Rule 10b-18. Repurchase program activity pursuant to the amended plan commenced on July 1, 2015 and will continue in effect until January 31, 2016 or expire earlier upon completion of the repurchase of $5.0 million of the Company’s common stock, as well as under certain other circumstances set forth in the repurchase plan agreement. The Company has no obligation to repurchase any shares under this program, and may suspend or discontinue it at any time. All shares repurchased as part of the repurchase program will be cancelled, and therefore no longer available for reissuance. As of June 30, 2015, the Company had repurchased 55,428 shares of its common stock under this plan at an average price of $7.47 per share.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Earnings Per Share	Note 10. Earnings Per Share Basic earnings per common share are computed by dividing net income by the weighted-average number of common and participating preferred shares outstanding for the reporting period, including the Series C Preferred Stock. In periods when the Company generates a net loss, preferred shares are not included in the calculation of basic loss per share. Diluted earnings per common share are computed by dividing net income by the weighted-average number of common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares are calculated using the treasury stock method and include incremental shares issuable upon exercise of outstanding stock options, and other share-based compensation. The computation of diluted earnings per common share excludes the impact of the assumed exercise or issuance of securities that would have an anti-dilutive effect. The following tables set forth number of shares used in the calculation of both basic and diluted earnings per common share: For the Three Months Ended June 30, 2015 2014 Net Net Income Shares Income Shares (dollars in thousands, except per share data) Net income $ $ Accretion on preferred stock - Net income available to common shareholders $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $ For the Six Months Ended June 30, 2015 2014 Net Net Income Shares Income Shares (dollars in thousands, except per share data) Net income $ $ Accretion on preferred stock - Net income available to common shareholders $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $ For the three and six months ended June 30, 2015 and 2014, common stock equivalents totaling approximately 99,000 shares and 116,000 shares and 408,000 shares and 293,000 shares respectively, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies.
Commitments and Contingencies	Note 11. Commitments and Contingencies In the normal course of business, various claims and lawsuits are brought by and against the Company. At June 30, 2015, the Company does not believe the disposition of all pending or threatened proceedings will have a material effect on the Company’s condensed consolidated financial statements. Commitments to Extend Credit In the normal course of business, the Bank enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in the Company’s condensed consolidated financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Standby letters of credit are conditional commitments to guarantee the performance of a Bank customer to a third party. Since many of the commitments and standby letters of credit are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Bank’s management evaluates each customer’s credit worthiness on a case-by-case basis, and determines the amount of collateral deemed adequate to secure the loan, if collateral security is determined to be necessary for the particular loan. The Bank’s exposure to loan loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for loans reflected in the Company’s condensed consolidated financial statements. As of June 30, 2015, and December 31, 2014, the Company had the following outstanding financial commitments: June 30, December 31, 2015 2014 (dollars in thousands) Commitments to extend credit $ $ Standby letters of credit Total commitments and standby letters of credit $ $ Commitments to extend credit and standby letters of credit are made at both fixed and variable rates of interest. At June 30, 2015 and December 31, 2014, the Company had $28.0 million and $35.7 million in fixed rate commitments, and $230.1 million and $217.5 million in variable rate commitments.

Regulatory Matters

Regulatory Matters	6 Months Ended
	Jun. 30, 2015
Regulatory Matters
Regulatory Matters	Note 12. Regulatory Matters BSA Consent Order On November 5, 2014, the Bank entered into a Stipulation to the Issuance of a Consent Order with the Federal Deposit Insurance Corporation (“FDIC”) and the California Department of Business Oversight (“DBO”), consenting to the issuance of a consent order (“the BSA Consent Order”) relating to identified deficiencies in the Bank’s centralized Bank Secrecy Act and anti-money laundering compliance program, which is designed to comply with the requirements of the Bank Secrecy Act, the USA Patriot Act of 2001 and related anti-money laundering regulations (collectively, the “BSA/AML Requirements”). Per the BSA Consent Order, the Bank must review, update and implement an enhanced Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) risk assessment process based on the 2010 Federal Financial Institutions Examination Council BSA/AML Examination Manual. Some of the areas highlighted in the BSA Consent Order include the requirements to: i) enhance customer due-diligence procedures; ii) improve the enhanced due diligence analysis for high-risk customers; iii) ensure the proper identification and reporting of suspicious activity; iv) address and correct the noted violations of law; v) ensure that there is sufficient and qualified staff; and vi) ensure that all staff are properly trained to carry out the BSA/AML programs. Certain activities, including expansionary activities, that otherwise require regulatory approval will likely be impeded while the BSA Consent Order remains outstanding. The Company continues to make progress in addressing the issues identified in the BSA Consent Order that was entered into with its regulators in November of 2014. However, the Company still has additional work to do in order to fully remediate the issues identified in the BSA Consent Order. Compliance and resolution of the BSA Consent Order will ultimately be determined by the FDIC and DBO.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events
Subsequent Events	Note 13. Subsequent Events Dividend Declaration On July 22, 2015, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on August 31, 2015, to shareholders of the Company’s common stock as of August 17, 2015.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Investment in Non-Consolidated Subsidiaries	Investment in Non-Consolidated Subsidiaries The Company accounts for its investment in Heritage Oaks Capital Trust II, Mission Community Capital Trust I, and Santa Lucia Bancorp (CA) Capital Trust, as unconsolidated subsidiaries using the equity method of accounting, as the Company is not the primary beneficiary of the trust. Mission Community Capital Trust I and Santa Lucia Bancorp (CA) Capital Trust were acquired as part of the acquisition of Mission Community Bancorp on February 28, 2014. The sole purpose of each of these trusts is for the issuance of trust preferred securities.
Reclassifications	Reclassifications Certain items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity.
Use of Estimates in the Preparation of Consolidated Financial Statements	Use of Estimates in the Preparation of Condensed Consolidated Financial Statements The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and general practices within the banking industry require management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Recent Accounting Guidance Adopted	Recent Accounting Guidance Adopted In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-14 Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure . This update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The amendments within this update are effective for interim and annual periods, beginning after December 15, 2014. The adoption of this Update did not have a material impact on the Company’s consolidated financial statements. On January 17, 2014, the FASB issued ASU No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors . This ASU provides clarification that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for interim and annual periods, beginning after December 15, 2014. The adoption of this Update did not have a material impact on the Company’s consolidated financial statements.
Recent Accounting Guidance Not Yet Effective	Recent Accounting Guidance Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This Update requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The amendments within this update are effective for the quarter ending March 31, 2018. The Company is currently in the process of evaluating the impact of the adoption of this Update, but does not expect a material impact on the Company’s consolidated financial statements.

Business Combination (Table)

Business Combination (Table)	6 Months Ended
	Jun. 30, 2015
Business Combination
Schedule of unaudited pro forma financial information	Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 (dollars in thousands, except per share data) Net interest income $ $ Provision for loan and lease losses - - Non-interest income Non-interest expense Income before income taxes Income tax expense Net income $ $ Earnings Per Common Share Basic $ $ Diluted $ $

Fair Value of Assets and Liab24

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value of Assets and Liabilities
Summary of the financial instruments the Company measures at fair value on a recurring basis	Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant June 30, 2015 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Obligations of U.S. government agencies $ $ - $ $ - Mortgage backed securities: U.S government sponsored entities and agencies - - Non-agency - - State and municipal securities - - Asset backed securities - - Total assets measured on a recurring basis $ $ - $ $ - Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant December 31, 2014 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Obligations of U.S. government agencies $ $ - $ $ - Mortgage backed securities: U.S government sponsored entities and agencies - - Non-agency - - State and municipal securities - - Asset backed securities - - Total assets measured on a recurring basis $ $ - $ $ -
Summary of assets the Company measures at fair value on a non-recurring basis	Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant June 30, 2015 Active Markets for Observable Unobservable Year To Assets At Identical Assets Inputs Inputs Date Losses Fair Value (Level 1) (Level 2) (Level 3) (Recoveries) (dollars in thousands) Assets Impaired loans: Land $ $ - $ - $ $ ) Total assets measured on a non-recurring basis $ $ - $ - $ $ ) Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant December 31, 2014 Active Markets for Observable Unobservable Year To Assets At Identical Assets Inputs Inputs Date Losses Fair Value (Level 1) (Level 2) (Level 3) (Recoveries) (dollars in thousands) Assets Impaired loans: Commercial real estate $ $ - $ - $ $ Land - - ) Total assets measured on a non-recurring basis $ $ - $ - $ $
Summary of the estimated fair value of financial instruments	Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant June 30, 2015 Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Fair Value (dollars in thousands) Assets Cash and cash equivalents $ $ $ - $ - $ Investment securities available for sale - - Federal Home Loan Bank stock - - - N/A Loans receivable, net of deferred fees and costs - - Loans held for sale - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Accrued interest payable - - Fair Value Measurements at the End of the Reporting Period Using As of Quoted Prices in Significant Other Significant December 31, 2014 Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Fair Value (dollars in thousands) Assets Cash and cash equivalents $ $ $ - $ - $ Investment securities available for sale - - Federal Home Loan Bank stock - - - N/A Loans receivable, net of deferred fees and costs - - Loans held for sale - - Accrued interest receivable - Liabilities Non interest-bearing deposits - - Interest-bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Accrued interest payable - -
Summary of off-balance sheet instruments	June 30, 2015 December 31, 2014 Notional Cost to Cede Notional Cost to Cede Amount or Assume Amount or Assume (dollars in thousands) Off-balance sheet instruments, commitments to extend credit and standby letters of credit $ $ $ $

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2015
Investment Securities
Schedule of amortized cost and fair values of the Company's investment securities, all of which are reported as available for sale	June 30, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Loss Value (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency - State and municipal securities Asset backed securities - Total available for sale securities $ $ $ $ December 31, 2014 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Loss Value (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities Asset backed securities - Total available for sale securities $ $ $ $
Summary of investment securities in an unrealized loss position	June 30, 2015 Less Than Twelve Months Twelve Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Obligations of U.S. government agencies $ $ $ - $ - $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency - - State and municipal securities Asset backed securities - - Total $ $ $ $ $ $ December 31, 2014 Less Than Twelve Months Twelve Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities Asset backed securities - - Total $ $ $ $ $ $
Schedule of proceeds from the sales and calls of securities and the associated gains and losses	For Three Months Ended For Six Months Ended June 30, June 30, 2015 2014 2015 2014 (dollars in thousands) Proceeds $ - $ $ $ Gross gains - Gross losses - )
Schedule of amortized cost and fair values maturities of available for sale investment securities	June 30, 2015 December 31, 2014 Amortized Amortized Cost Fair Value Cost Fair Value (dollars in thousands) Due one year or less $ $ $ $ Due after one year through five years Due after five years through ten years Due after ten years Total $ $ $ $
Summary of earnings on both taxable and tax-exempt investment securities	For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (dollars in thousands) Taxable earnings on investment securities Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities State and municipal securities Corporate debt securities - - Asset backed securities Non-taxable earnings on investment securities State and municipal securities Total $ $ $ $

Loans and Allowance for Loan 26

Loans and Allowance for Loan and Lease Losses (Tables)	6 Months Ended
	Jun. 30, 2015
Loans and Allowance for Loan and Lease Losses
Summary of outstanding loan balances	June 30, 2015 December 31, 2014 Non-PCI PCI Non-PCI PCI Loans Loans Total Loans Loans Total (dollars in thousands) Real Estate Secured Commercial $ $ $ $ $ $ Residential 1 to 4 family Farmland - Multi-family residential - - Home equity lines of credit - - Construction - - Land Total real estate secured Commercial Commercial and industrial Agriculture Other - - Total commercial Installment - - Overdrafts - - Total gross loans held for investment Net deferred loan fees - - Allowance for loan and lease losses - Total net loans held for investment $ $ $ $ $ $ Loans held for sale $ $ - $ $ $ - $
Summary of the recorded investment in non-PCI and PCI impaired loans	For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 June 30, 2015 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ Land - Residential 1 to 4 family - Farmland - Home equity lines of credit - - - Commercial Commercial and industrial - Agriculture - Installment - Total - With Related Allowance Real Estate Secured Land - - Commercial - - Commercial Commercial and industrial Total Total Non-PCI impaired loans $ $ $ $ $ $ $ For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 June 30, 2015 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ Land - Residential 1 to 4 family - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Land Residential 1 to 4 family Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ $ $ For the Three Months Ended For the Six Months Ended December 31, 2014 June 30, 2014 June 30, 2014 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ Land - Farmland - Residential 1 to 4 family - Home equity lines of credit - - - Commercial Commercial and industrial - Agriculture - - - Installment - Total - With Related Allowance Real Estate Secured Land Commercial - - - - Commercial Commercial and industrial Total Total Non-PCI impaired loans $ $ $ $ $ $ $ For the Three Months Ended For the Six Months Ended December 31, 2014 June 30, 2014 June 30, 2014 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ Farmland - Land - Residential 1 to 4 family - Home equity lines of credit - - - Commercial Agriculture - Commercial and industrial - Total PCI loans $ $ $ - $ $ $ $
Summary of loans classified as TDRs	June 30, 2015 December 31, 2014 Accrual Non-accrual Total Accrual Non-accrual Total (dollars in thousands) Non-PCI Loans Real Estate Secured Land $ $ $ $ $ $ Commercial Residential 1 to 4 family - Farmland - - Commercial Commercial and industrial Agriculture - - Installment - - Total non-PCI loans PCI Loans Real Estate Secured Commercial - Land - - - - Commercial Commercial and industrial Total PCI loans Total TDRs $ $ $ $ $ $
Schedule of loan modifications resulted in TDRs for non-PCI and PCI loans	For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded of TDRs Investment Investment of TDRs Investment Investment (dollars in thousands) Non-PCI Loans Real Estate Secured Residential 1 to 4 family $ $ $ $ Commercial Farmland Land Commercial Commercial and industrial Agriculture - - - Installment - - - PCI Loans Real Estate Secured Commercial Land Total $ $ $ $ For the Three Months Ended For the Six Months Ended June 30, 2014 June 30, 2014 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded of TDRs Investment Investment of TDRs Investment Investment (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial - $ - $ - $ $ Land Commercial Commercial and industrial Agriculture - - - Installment - - - PCI Loans Real Estate Secured Commercial Commercial Commercial and industrial Total $ $ $ $
Schedule of loans that were modified as troubled debt restructurings within the twelve months prior to the balance sheet date indicated for which there was a payment default	For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Commercial Commercial and industrial - $ - $ Total - $ - $ For the Three Months Ended For the Six Months Ended June 30, 2014 June 30, 2014 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Commercial Commercial and industrial $ $ Total $ $
Schedule of loan portfolio by the Company's internal risk grading system	June 30, 2015 Credit Risk Grades Special Pass Mention Substandard Doubtful Total (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial $ $ $ $ - $ Residential 1 to 4 family - - Farmland - - Multi-family residential - Home equity lines of credit - Construction - - - Land - Commercial Commercial and industrial - Agriculture - Other - - - Installment - - Overdrafts - - - Total non-PCI loans - PCI Loans Real Estate Secured Commercial - - Land - Residential 1 to 4 family - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $ December 31, 2014 Credit Risk Grades Special Pass Mention Substandard Doubtful Total (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial $ $ $ $ - $ Residential 1 to 4 family - Farmland - Multi-family residential - - Home equity lines of credit - - Construction - - - Land - - Commercial Commercial and industrial Agriculture - Other - - - Installment - - Overdrafts - - - Total non-PCI loans PCI Loans Real Estate Secured Commercial - Farmland - - - Land - - Residential 1 to 4 family - - - Commercial Agriculture - - - Commercial and industrial Total PCI loans Total loans held for investment $ $ $ $ $
Summary of the aging of loans held for investment	June 30, 2015 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing Total (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - Farmland - - - - Multi-family residential - - - - Home equity lines of credit - - - Construction - - - - Land - - - Commercial Commercial and industrial - - Agriculture - - - Other - - - - Installment - - - Overdrafts - - - - Total non-PCI loans - - PCI Loans Real Estate Secured Commercial - - - Land - - - - Residential 1 to 4 family - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ - $ - $ $ December 31, 2014 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing Total (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - Farmland - - - - Multi-family residential - - - - Home equity lines of credit - - - Construction - - - - Land - - - Commercial Commercial and industrial - - Agriculture - - - Other - - - - Installment - Overdrafts - - - - Total non-PCI loans - PCI Loans Real Estate Secured Commercial - - - - Farmland - - - - Land - - - - Residential 1 to 4 family - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ $ - $ $
Schedule of carrying amount and unpaid principal balance of purchased credit impaired loans	June 30, 2015 December 31, 2014 Unpaid Principal Balance Carrying Amount Unpaid Principal Balance Carrying Amount (dollars in thousands) Real Estate Secured Commercial $ $ $ $ Land Residential 1 to 4 family Farmland - - Total real estate secured Commercial Commercial and industrial Agriculture Total commercial Total PCI loans $ $ $ $
Schedule of accretable yield, or income expected to be collected	For the Six Months Ended June 30, 2015 (dollars in thousands) Balance, December 31, 2014 $ Accretion of income ) Reclassifications from nonaccretable difference (1) Balance, June 30, 2015 $ (1) Reclassification from nonaccretable difference is attributable to positive changes in expected future cash flows on certain PCI loans.
Summary of the activity in the allowance for loan and lease losses by portfolio segment	For the Three Months Ended June 30, 2015 Balance March 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Land - Installment All other loans - - Unallocated Total $ $ $ $ - $ For the Six Months Ended June 30, 2015 Balance December 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Land Installment All other loans - - Unallocated Total $ $ $ $ - $ For the Three Months Ended June 30, 2014 Balance March 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2014 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Land - Installment All other loans - - Unallocated Total $ $ $ $ - $ For the Six Months Ended June 30, 2014 Balance December 31, 2013 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2014 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Land - Installment All other loans - - Unallocated Total $ $ $ $ - $
Schedule of allowance for loan and lease losses and the recorded investment in loans by impairment methodology	June 30, 2015 Allowance for Loan and Lease Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality (dollars in thousands) Other real estate secured $ $ $ $ $ $ Commercial Land Installment - - - All other loans - - - - Unallocated - - Total $ $ $ $ $ $ December 31, 2014 Allowance for Loan and Lease Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality (dollars in thousands) Other real estate secured $ $ $ - $ $ $ Commercial - Land - Installment - - - All other loans - - - - Unallocated - - Total $ $ $ - $ $ $

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and Other Intangible Assets
Summary of the gross carrying amount, accumulated amortization and net carrying amount of CDI	June 30, 2015 Gross Carrying Accumulated Net Carrying Amount Amortization Amount (dollars in thousands) Core deposit intangibles $ $ $
Summary of an estimate for future amortization expense	June 30, 2015 Beginning Balance Estimated Remaining Amortization Projected Ending Balance (dollars in thousands) Period Year 2015 $ $ $ Year 2016 Year 2017 Year 2018 Year 2019 Year 2020

Share-based Compensation Plans

Share-based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Share-based Compensation Plans
Summary of recognized and unrecognized share based compensation expense	For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (dollars in thousands) Share-based compensation expense: Stock options $ $ $ $ Restricted stock Total expense $ $ $ $ Unrecognized compensation expense: Stock options $ $ Restricted stock Total unrecognized expense $ $
Summary of activity related to restricted stock granted, vested and forfeited	Number of Average Grant Shares Date Fair Value Balance December 31, 2014 $ Granted Vested Forfeited Balance June 30, 2015 $
Schedule of assumptions used in the calculation of weighted average fair value of options granted	For the Six Months Ended June 30, 2015 2014 Expected volatility Expected term (years) Dividend yield Risk free rate Weighted-average grant date fair value $ $
Summary of activity related to options granted, exercised, and forfeited	Options Outstanding Options Number Weighted Average Available for of Shares Exercise Price Grant (1) Balance, December 31, 2014 $ Granted Forfeited Exercised Expired Balance, June 30, 2015 $ (1) Shares available for grant as of December 31, 2014 were from the 2005 Equity Based Compensation Plan, which expired in March 2015. As of June 30, 2015, no further grants can be made from that plan. Shares available for grant as of June 30, 2015 are from the 2015 Equity Incentive Plan, which was approved by the Company’s shareholders in May 2015.
Summary of the aggregate intrinsic value of options vested and expected to vest and exercisable	June 30, 2015 Weighted Average Weighted Remaining Aggregate Average Contractual Life Intrinsic Shares Exercise Price (Years) Value Vested or expected to vest $ $ Exercisable $ $

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Shareholders' Equity
Schedule of the Company's and the Bank's actual regulatory capital ratios	Basel III Pre-Basel III Regulatory Regulatory Standard to be Standard to be Well June 30, 2015 Well December 31, 2014 June 30, 2014 Capitalized (1) Company Bank Capitalized (1) Company Bank Company Bank Ratio Common Equity Tier I capital 6.50% N/A N/A N/A N/A N/A Leverage ratio 5.00% 5.00% Tier I capital 8.00% 6.00% Total risk-based capital 10.00% 10.00% (1) Reflects minimum threshold to be considered “well capitalized” under the Prompt Corrective Action framework, specific to depository institutions.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Schedule of calculation of both basic and diluted earnings per common share	For the Three Months Ended June 30, 2015 2014 Net Net Income Shares Income Shares (dollars in thousands, except per share data) Net income $ $ Accretion on preferred stock - Net income available to common shareholders $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $ For the Six Months Ended June 30, 2015 2014 Net Net Income Shares Income Shares (dollars in thousands, except per share data) Net income $ $ Accretion on preferred stock - Net income available to common shareholders $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies.
Schedule of outstanding financial commitments	June 30, December 31, 2015 2014 (dollars in thousands) Commitments to extend credit $ $ Standby letters of credit Total commitments and standby letters of credit $ $

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)segment	Dec. 31, 2014USD ($)	Feb. 28, 2014
Nature of Operations
Number of business segments | segment	1
Financial instruments of the Company measured at fair value on a recurring basis
Total assets	$ 1,828,379	$ 1,710,127
MISN
Financial instruments of the Company measured at fair value on a recurring basis
Percentage acquired of outstanding common shares			100.00%
All Non-United States countries
Financial instruments of the Company measured at fair value on a recurring basis
Total assets	0
Revenue	$ 0

Business Combination (Details)

Business Combination (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 28, 2014	Jun. 30, 2014	Jun. 30, 2014
Pro Forma Financial Information
Net interest Income		$ 15,002	$ 30,380
Non-interest income		2,476	4,840
Non-interest expense		12,986	33,459
Income before income tax expense		4,492	1,761
Income tax expense		1,645	632
Net income		$ 2,847	$ 1,129
Loss Per Common Share
Basic (in dollars per share)		$ 0.09	$ 0.03
Diluted (in dollars per share)		$ 0.09	$ 0.03
MISN
Business combination
Percentage acquired of outstanding common shares	100.00%
Common stock issued (in shares)	7,541,326
Aggregate cash consideration	$ 8,700
Transaction value	$ 69,000
Closing price (in dollars per share)	$ 7.99

Fair Value of Assets and Liab34

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	$ 379,824	$ 355,580
Obligations of U.S. government agencies
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	47,421	19,664
Mortgage-backed securities - Agency
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	206,311	215,398
Mortgage-backed securities - Non-agency
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	12,983	11,901
State and municipal securities
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	96,562	82,592
Asset backed securities
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	16,547	26,025
Significant Other Observable Inputs (Level 2)
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	379,824	355,580
Recurring basis | Assets At Fair Value
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	379,824	355,580
Recurring basis | Assets At Fair Value | Obligations of U.S. government agencies
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	47,421	19,664
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Agency
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	206,311	215,398
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Non-agency
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	12,983	11,901
Recurring basis | Assets At Fair Value | State and municipal securities
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	96,562	82,592
Recurring basis | Assets At Fair Value | Asset backed securities
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	16,547	26,025
Recurring basis | Significant Other Observable Inputs (Level 2)
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	379,824	355,580
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. government agencies
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	47,421	19,664
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Agency
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	206,311	215,398
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Non-agency
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	12,983	11,901
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal securities
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	96,562	82,592
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset backed securities
Financial instruments of the Company measured at fair value on a recurring basis
Total assets measured on a recurring basis	$ 16,547	$ 26,025

Fair Value of Assets and Liab35

Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Land
Total Losses for assets measured at fair value on a non-recurring basis
Year to Date Losses/(Recoveries) on impaired loans	$ (125)
Recurring basis
Total Losses for assets measured at fair value on a non-recurring basis
Assets transfer from Level 1 to level 2	0
Assets transfer from Level 2 to level 1	0
Non-recurring basis
Total Losses for assets measured at fair value on a non-recurring basis
Year to Date Losses/(Recoveries)	(125)	$ 80
Assets transfer from Level 1 to level 2	0
Assets transfer from Level 2 to level 1	0
Non-recurring basis | Commercial real estate
Total Losses for assets measured at fair value on a non-recurring basis
Year to Date Losses/(Recoveries)		1,026
Non-recurring basis | Land
Total Losses for assets measured at fair value on a non-recurring basis
Year to Date Losses/(Recoveries) on impaired loans		(946)
Non-recurring basis | Assets At Fair Value
Assets
Total assets measured on a non-recurring basis	3,261	4,586
Non-recurring basis | Assets At Fair Value | Commercial real estate
Assets
Impaired loans		1,325
Non-recurring basis | Assets At Fair Value | Land
Assets
Impaired loans	3,261	3,261
Non-recurring basis | Significant Unobservable Inputs (Level 3)
Assets
Total assets measured on a non-recurring basis	3,261	4,586
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Commercial real estate
Assets
Impaired loans		1,325
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Land
Assets
Impaired loans	$ 3,261	$ 3,261

Fair Value of Assets and Liab36

Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Fair Value	$ 379,824	$ 355,580
Liabilities
Non-interest bearing deposits	516,431	461,479
Junior subordinated debentures	13,338	13,233
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Notional Amount	258,122	253,275
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Cost to Cede or Assume	2,581	2,533
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	129,013	35,580
Liabilities
Non-interest bearing deposits	516,431	461,479
Significant Other Observable Inputs (Level 2)
Assets
Fair Value	379,824	355,580
Loans held for sale	8,736	2,586
Accrued interest receivable	2,309	2,038
Liabilities
Interest bearing deposits	997,927	936,151
Federal Home Loan Bank advances	93,778	96,679
Accrued interest payable	470	401
Significant Unobservable Inputs (Level 3)
Assets
Loans receivable, net of deferred fees and costs	1,209,135	1,196,997
Accrued interest receivable	3,619	3,621
Liabilities
Junior subordinated debentures	10,236	9,297
Carrying Amount
Assets
Cash and cash equivalents	129,013	35,580
Fair Value	379,824	355,580
Federal Home Loan Bank stock	7,853	7,853
Loans receivable, net of deferred fees and costs	1,189,996	1,192,038
Loans held for sale	8,736	2,586
Accrued interest receivable	5,928	5,659
Liabilities
Non-interest bearing deposits	516,431	461,479
Interest bearing deposits	995,208	933,325
Federal Home Loan Bank advances	93,550	95,558
Junior subordinated debentures	13,338	13,233
Accrued interest payable	470	401
Assets At Fair Value
Assets
Cash and cash equivalents	129,013	35,580
Fair Value	379,824	355,580
Loans receivable, net of deferred fees and costs	1,209,135	1,196,997
Loans held for sale	8,736	2,586
Accrued interest receivable	5,928	5,659
Liabilities
Non-interest bearing deposits	516,431	461,479
Interest bearing deposits	997,927	936,151
Federal Home Loan Bank advances	93,778	96,679
Junior subordinated debentures	10,236	9,297
Accrued interest payable	$ 470	$ 401

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	$ 379,463	$ 353,971
Gross Unrealized Gains	3,210	4,147
Gross Unrealized Losses	(2,849)	(2,538)
Fair Value	379,824	355,580
Obligations of U.S. government agencies
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	47,340	19,562
Gross Unrealized Gains	269	191
Gross Unrealized Losses	(188)	(89)
Fair Value	47,421	19,664
Mortgage-backed securities - Agency
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	206,571	216,492
Gross Unrealized Gains	1,229	1,092
Gross Unrealized Losses	(1,489)	(2,186)
Fair Value	206,311	215,398
Mortgage-backed securities - Non-agency
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	13,030	11,891
Gross Unrealized Gains		21
Gross Unrealized Losses	(47)	(11)
Fair Value	12,983	11,901
State and municipal securities
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	95,778	79,810
Gross Unrealized Gains	1,712	2,843
Gross Unrealized Losses	(928)	(61)
Fair Value	96,562	82,592
Asset backed securities
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	16,744	26,216
Gross Unrealized Losses	(197)	(191)
Fair Value	$ 16,547	$ 26,025

Investment Securities (Details

Investment Securities (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)security	Dec. 31, 2014USD ($)security
Investment securities
Less Than Twelve Months, Fair Value	$ 155,417	$ 62,277
Less Than Twelve Months, Unrealized Loss	(1,807)	(741)
Twelve Months or More, Fair Value	55,400	81,265
Twelve Months or More, Unrealized Loss	(1,042)	(1,797)
Total, Fair Value	210,817	143,542
Total, Unrealized Loss	$ (2,849)	$ (2,538)
Securities were in an unrealized loss position | security	109	57
Investment security holdings | Minimum
Securities in an unrealized loss position
Maturity period of available-for-sale securities	1 year
Investment security holdings | Maximum
Securities in an unrealized loss position
Maturity period of available-for-sale securities	40 years
Obligations of U.S. government agencies
Investment securities
Less Than Twelve Months, Fair Value	$ 28,200	$ 2,795
Less Than Twelve Months, Unrealized Loss	(188)	(17)
Twelve Months or More, Fair Value		2,607
Twelve Months or More, Unrealized Loss		(72)
Total, Fair Value	28,200	5,402
Total, Unrealized Loss	(188)	(89)
Mortgage-backed securities - Agency
Investment securities
Less Than Twelve Months, Fair Value	64,634	50,583
Less Than Twelve Months, Unrealized Loss	(654)	(670)
Twelve Months or More, Fair Value	37,887	58,753
Twelve Months or More, Unrealized Loss	(835)	(1,516)
Total, Fair Value	102,521	109,336
Total, Unrealized Loss	(1,489)	(2,186)
Mortgage-backed securities - Non-agency
Investment securities
Less Than Twelve Months, Fair Value	12,812	3,000
Less Than Twelve Months, Unrealized Loss	(47)	(7)
Twelve Months or More, Fair Value		507
Twelve Months or More, Unrealized Loss		(4)
Total, Fair Value	12,812	3,507
Total, Unrealized Loss	(47)	(11)
State and municipal securities
Investment securities
Less Than Twelve Months, Fair Value	49,771	5,899
Less Than Twelve Months, Unrealized Loss	(918)	(47)
Twelve Months or More, Fair Value	966	2,245
Twelve Months or More, Unrealized Loss	(10)	(14)
Total, Fair Value	50,737	8,144
Total, Unrealized Loss	(928)	(61)
Asset backed securities
Investment securities
Twelve Months or More, Fair Value	16,547	17,153
Twelve Months or More, Unrealized Loss	(197)	(191)
Total, Fair Value	16,547	17,153
Total, Unrealized Loss	$ (197)	$ (191)

Investment Securities (Detail39

Investment Securities (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Proceeds from the sales and calls of securities and the associated gains and losses
Proceeds	$ 0	$ 62,826	$ 46,528	$ 78,389
Gross gains		279	679	357
Gross losses		(178)	(174)	(258)
Income tax expense (benefit) related to net realized gains (losses) on sale of securities		$ 42	$ 212	$ 41

Investment Securities (Detail40

Investment Securities (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Available for sale securities, Amortized cost
Due one year or less	$ 37,535	$ 38,674
Due after one year through five years	125,489	113,081
Due after five years through ten years	154,744	137,909
Due after ten years	61,695	64,307
Total	379,463	353,971
Available for sale securities, Fair Value
Due one year or less	37,644	38,587
Due after one year through five years	125,692	112,926
Due after five years through ten years	155,216	140,115
Due after ten years	61,272	63,952
Total	379,824	355,580
Securities pledged to secure public deposits
Available for sale securities, Amortized cost
Total	135,200	67,300
Available for sale securities, Fair Value
Total	$ 136,200	$ 72,500

Investment Securities (Detail41

Investment Securities (Details 5) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings on both taxable and tax-exempt investment securities
Total	$ 1,662	$ 1,819	$ 3,329	$ 3,409
Obligations of U.S. government agencies
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	191	66	326	114
Mortgage backed securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	738	1,194	1,591	2,219
State and municipal securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	126	2	188	2
Non-taxable earnings on investment securities	575	468	1,144	907
Corporate debt securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities		3		6
Asset backed securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	$ 32	$ 86	$ 80	$ 161

Loans and Allowance for Loan 42

Loans and Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Outstanding loan balances
Total gross loans held for investment	$ 1,191,153		$ 1,191,153			$ 1,193,483
Net deferred loan fees	(1,157)		(1,157)			(1,445)
Allowance for loan and lease losses	(16,982)	$ (16,635)	(16,982)	$ (16,635)	$ (16,913)	(16,802)	$ (17,968)	$ (17,859)
Net loans held for investment	1,173,014		1,173,014			1,175,236
Loans held for sale	8,736		8,736			2,586
Concentration of Credit Risk
Loan portfolio collateralized by various forms of real estate	993,100		993,100			978,200
Loans Serviced for Others
Unpaid principal balance of loans serviced for others, exclusive of SBA loans	43,400		43,400			44,800
Unpaid principal balance of SBA loans serviced for others	10,200		10,200			13,000
Recognized gains from the sale of SBA loans	0	0	0	0
Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	1,181,445		1,181,445			1,183,183
Net deferred loan fees	(1,157)		(1,157)			(1,445)
Allowance for loan and lease losses	(16,891)		(16,891)			(16,802)
Net loans held for investment	1,163,397		1,163,397			1,164,936
Loans held for sale	8,736		8,736			2,586
PCI loans
Outstanding loan balances
Total gross loans held for investment	9,708		9,708			10,300
Allowance for loan and lease losses	(91)		(91)
Net loans held for investment	9,617		9,617			10,300
Federal Reserve Bank
Outstanding loan balances
Loans pledged as collateral	593,200		593,200
FHLB secured credit facility	394,800		394,800
FHLB secured borrowings	93,500		93,500
FHLB secured line of credit	11,500		11,500
Reserve maintained for the exercise of repurchase option by buyer	7,000		7,000
MISN
Outstanding loan balances
Total gross loans held for investment	202,200		202,200			239,700
MISN | PCI loans
Outstanding loan balances
Total gross loans held for investment	9,700		$ 9,700			10,300
Minimum
Outstanding loan balances
Period for sale of loans categorized as held for sale			30 days
Maximum
Outstanding loan balances
Period for sale of loans categorized as held for sale			60 days
Land
Outstanding loan balances
Allowance for loan and lease losses	(1,557)	(2,944)	$ (1,557)	(2,944)	(1,648)	(1,655)	(3,155)
Real Estate Secured
Outstanding loan balances
Total gross loans held for investment	984,399		984,399			975,603
Real Estate Secured | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	977,281		977,281			968,110
Real Estate Secured | PCI loans
Outstanding loan balances
Total gross loans held for investment	7,118		7,118			7,493
Real Estate Secured | Commercial real estate
Outstanding loan balances
Total gross loans held for investment	585,811		585,811			588,472
Real Estate Secured | Commercial real estate | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	580,072		580,072			584,056
Real Estate Secured | Commercial real estate | PCI loans
Outstanding loan balances
Total gross loans held for investment	5,739		5,739			4,416
Real Estate Secured | Residential 1 to 4 family
Outstanding loan balances
Total gross loans held for investment	143,256		143,256			127,201
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	142,692		142,692			126,640
Real Estate Secured | Residential 1 to 4 family | PCI loans
Outstanding loan balances
Total gross loans held for investment	564		564			561
Real Estate Secured | Farmland
Outstanding loan balances
Total gross loans held for investment	104,613		104,613			98,373
Real Estate Secured | Farmland | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	104,613		104,613			96,708
Real Estate Secured | Farmland | PCI loans
Outstanding loan balances
Total gross loans held for investment						1,665
Real Estate Secured | Multi-family residential
Outstanding loan balances
Total gross loans held for investment	76,903		76,903			78,645
Real Estate Secured | Multi-family residential | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	76,903		76,903			78,645
Real Estate Secured | Home equity lines of credit
Outstanding loan balances
Total gross loans held for investment	32,759		32,759			38,252
Real Estate Secured | Home equity lines of credit | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	32,759		32,759			38,252
Real Estate Secured | Construction
Outstanding loan balances
Total gross loans held for investment	20,969		20,969			24,493
Real Estate Secured | Construction | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	20,969		20,969			24,493
Real Estate Secured | Land
Outstanding loan balances
Total gross loans held for investment	20,088		20,088			20,167
Real Estate Secured | Land | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	19,273		19,273			19,316
Real Estate Secured | Land | PCI loans
Outstanding loan balances
Total gross loans held for investment	815		815			851
Commercial
Outstanding loan balances
Total gross loans held for investment	200,003		200,003			209,902
Allowance for loan and lease losses	(4,993)	(4,436)	(4,993)	(4,436)	(4,495)	(5,125)	(4,898)	(4,781)
Commercial | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	197,413		197,413			207,095
Commercial | PCI loans
Outstanding loan balances
Total gross loans held for investment	2,590		2,590			2,807
Commercial | Commercial and industrial
Outstanding loan balances
Total gross loans held for investment	151,401		151,401			154,787
Commercial | Commercial and industrial | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	150,244		150,244			153,403
Commercial | Commercial and industrial | PCI loans
Outstanding loan balances
Total gross loans held for investment	1,157		1,157			1,384
Commercial | Agriculture
Outstanding loan balances
Total gross loans held for investment	48,601		48,601			55,101
Commercial | Agriculture | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	47,168		47,168			53,678
Commercial | Agriculture | PCI loans
Outstanding loan balances
Total gross loans held for investment	1,433		1,433			1,423
Commercial | Other
Outstanding loan balances
Total gross loans held for investment	1		1			14
Commercial | Other | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	1		1			14
Installment
Outstanding loan balances
Total gross loans held for investment	6,499		6,499			7,723
Allowance for loan and lease losses	(145)	(73)	(145)	(73)	$ (163)	(172)	$ (87)	(99)
Installment | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	6,499		6,499			7,723
Overdrafts
Outstanding loan balances
Total gross loans held for investment	252		252			255
Overdrafts | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	$ 252		$ 252			$ 255
Land
Outstanding loan balances
Allowance for loan and lease losses		$ (2,944)		$ (2,944)				$ (3,402)

Loans and Allowance for Loan 43

Loans and Allowance for Loan and Lease Losses (Details 2) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)loan	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)loan	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	$ 10,954		$ 10,954		$ 9,978
Recorded investment with related allowance	6,226		6,226		6,417
Unpaid principal balance without related allowance	13,707		13,707		14,543
Unpaid principal balance with related allowance	10,186		10,186		10,241
Specific Allowance for Impaired Loans	1,557		1,557		1,771
Average recorded investment without related allowance	12,040	$ 8,046	11,531	$ 8,136
Average recorded investment with related allowance	6,093	8,347	6,116	8,500
Interest income recognized without related allowance	80	62	180	126
Interest income recognized with related allowance	16	49	29	88
Recorded Investment	17,180		17,180		16,395
Unpaid Principal Balance	23,893		23,893		24,784
Average Recorded Investment	18,133	16,393	17,647	16,636
Interest Income Recognized	96	111	209	214
PCI loans
Investment in impaired loans
Recorded investment without related allowance	7,868		7,868		10,341
Recorded investment with related allowance	1,840		1,840
Unpaid principal balance without related allowance	10,135		10,135		13,390
Unpaid principal balance with related allowance	2,044		2,044
Specific Allowance for Impaired Loans	91		91
Average recorded investment without related allowance	7,942	12,378	8,114	12,486
Average recorded investment with related allowance	1,856		1,865
Interest income recognized without related allowance	217	274	845	391
Interest income recognized with related allowance	38		87
Recorded Investment	9,708		9,708
Unpaid Principal Balance	12,179		12,179
Average Recorded Investment	9,798		9,979
Interest Income Recognized	$ 255		$ 932
Residential 1 to 4 family
Foreclosures
Number of foreclosures | loan	0		0
Foreclosed assets	$ 0		$ 0
Real Estate Secured | Commercial real estate | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	4,281		4,281		4,000
Recorded investment with related allowance	468		468		498
Unpaid principal balance without related allowance	5,735		5,735		6,255
Unpaid principal balance with related allowance	679		679		688
Specific Allowance for Impaired Loans	100		100		148
Average recorded investment without related allowance	4,263	1,631	4,211	1,711
Average recorded investment with related allowance	476		483
Interest income recognized without related allowance	38	6	75	12
Real Estate Secured | Commercial real estate | PCI loans
Investment in impaired loans
Recorded investment without related allowance	4,932		4,932		4,432
Recorded investment with related allowance	807		807
Unpaid principal balance without related allowance	6,412		6,412		6,109
Unpaid principal balance with related allowance	858		858
Specific Allowance for Impaired Loans	43		43
Average recorded investment without related allowance	4,951	5,249	5,073	5,288
Average recorded investment with related allowance	806		800
Interest income recognized without related allowance	125	127	665	196
Interest income recognized with related allowance	19		49
Real Estate Secured | Land | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	1,417		1,417		1,470
Recorded investment with related allowance	4,600		4,600		4,876
Unpaid principal balance without related allowance	2,127		2,127		2,355
Unpaid principal balance with related allowance	8,346		8,346		8,499
Specific Allowance for Impaired Loans	1,339		1,339		1,472
Average recorded investment without related allowance	1,496	1,245	1,570	1,237
Average recorded investment with related allowance	4,637	6,553	4,666	6,627
Interest income recognized without related allowance	24	15	47	30
Interest income recognized with related allowance		21		42
Real Estate Secured | Land | PCI loans
Investment in impaired loans
Recorded investment without related allowance	553		553		853
Recorded investment with related allowance	262		262
Unpaid principal balance without related allowance	674		674		993
Unpaid principal balance with related allowance	266		266
Specific Allowance for Impaired Loans	8		8
Average recorded investment without related allowance	555	979	556	983
Average recorded investment with related allowance	274		280
Interest income recognized without related allowance	20	26	38	26
Interest income recognized with related allowance	5		10
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	707		707		260
Unpaid principal balance without related allowance	849		849		383
Average recorded investment without related allowance	680	413	540	587
Interest income recognized without related allowance	1	2	1	10
Real Estate Secured | Residential 1 to 4 family | PCI loans
Investment in impaired loans
Recorded investment without related allowance	449		449		564
Recorded investment with related allowance	115		115
Unpaid principal balance without related allowance	683		683		886
Unpaid principal balance with related allowance	197		197
Specific Allowance for Impaired Loans	2		2
Average recorded investment without related allowance	449	595	450	596
Average recorded investment with related allowance	115		114
Interest income recognized without related allowance	13	15	24	16
Interest income recognized with related allowance	3		6
Real Estate Secured | Farmland | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	272		272		283
Unpaid principal balance without related allowance	272		272		282
Average recorded investment without related allowance	725	147	578	147
Interest income recognized without related allowance	3	4	19	9
Real Estate Secured | Farmland | PCI loans
Investment in impaired loans
Recorded investment without related allowance					1,673
Unpaid principal balance without related allowance					2,027
Average recorded investment without related allowance		1,718		1,725
Interest income recognized without related allowance		44		45
Real Estate Secured | Home equity lines of credit | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	86		86		258
Unpaid principal balance without related allowance	86		86		340
Average recorded investment without related allowance	66	50	130	50
Real Estate Secured | Home equity lines of credit | PCI loans
Investment in impaired loans
Average recorded investment without related allowance		81		81
Interest income recognized without related allowance		2		2
Commercial | Commercial and industrial | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	3,379		3,379		2,875
Recorded investment with related allowance	1,158		1,158		1,043
Unpaid principal balance without related allowance	3,722		3,722		3,967
Unpaid principal balance with related allowance	1,161		1,161		1,054
Specific Allowance for Impaired Loans	118		118		151
Average recorded investment without related allowance	3,993	3,592	3,680	3,543
Average recorded investment with related allowance	980	1,794	967	1,873
Interest income recognized without related allowance	12	34	34	63
Interest income recognized with related allowance	16	28	29	46
Commercial | Commercial and industrial | PCI loans
Investment in impaired loans
Recorded investment without related allowance	501		501		1,388
Recorded investment with related allowance	656		656
Unpaid principal balance without related allowance	874		874		1,883
Unpaid principal balance with related allowance	723		723
Specific Allowance for Impaired Loans	38		38
Average recorded investment without related allowance	552	2,532	602	2,586
Average recorded investment with related allowance	661		671
Interest income recognized without related allowance	30	32	60	78
Interest income recognized with related allowance	11		22
Commercial | Agriculture | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	655		655		720
Unpaid principal balance without related allowance	695		695		760
Average recorded investment without related allowance	657	876	678	757
Interest income recognized without related allowance	1		1
Commercial | Agriculture | PCI loans
Investment in impaired loans
Recorded investment without related allowance	1,433		1,433		1,431
Unpaid principal balance without related allowance	1,492		1,492		1,492
Average recorded investment without related allowance	1,435	1,224	1,433	1,227
Interest income recognized without related allowance	29	28	58	28
Installment | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	157		157		112
Unpaid principal balance without related allowance	221		221		$ 201
Average recorded investment without related allowance	160	92	144	104
Interest income recognized without related allowance	$ 1	$ 1	$ 3	$ 2

Loans and Allowance for Loan 44

Loans and Allowance for Loan and Lease Losses (Details 3) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)itemloan	Jun. 30, 2014USD ($)item	Jun. 30, 2015USD ($)itemloan	Jun. 30, 2014USD ($)itemloan	Dec. 31, 2014USD ($)
Troubled debt restructurings
Accruing loans that were classified as TDRs	$ 6,630		$ 6,630		$ 6,511
Non-Accruing	8,635		8,635		7,057
Loans classified as TDRs	$ 15,265		$ 15,265		13,568
Number of TDRs	14	10	25	18
Pre-Modification Outstanding Recorded Investment	$ 3,412	$ 1,212	$ 5,652	$ 3,193
Post-Modification Outstanding Recorded Investment	3,412	$ 1,212	$ 5,652	$ 3,193
Minimum
Troubled debt restructurings
Period of maturity date extensions granted			6 years
Maximum
Troubled debt restructurings
Period of maturity date extensions granted			10 years
Non-PCI Loans
Troubled debt restructurings
Accruing loans that were classified as TDRs	5,961		$ 5,961		6,251
Non-Accruing	8,488		8,488		6,950
Loans classified as TDRs	$ 14,449		$ 14,449		13,201
Troubled Debt Restructurings That Subsequently Defaulted
Number of TDRs | item	1	1	1	1
Recorded Investment		$ 30	$ 18	$ 30
Non-PCI Loans | Real Estate Secured | Land
Troubled debt restructurings
Accruing loans that were classified as TDRs	$ 1,263		1,263		1,109
Non-Accruing	4,751		4,751		5,149
Loans classified as TDRs	$ 6,014		$ 6,014		6,258
Number of TDRs	1	1	1	2
Pre-Modification Outstanding Recorded Investment	$ 97	$ 116	$ 97	$ 276
Post-Modification Outstanding Recorded Investment	97	$ 116	97	$ 276
Non-PCI Loans | Real Estate Secured | Commercial real estate
Troubled debt restructurings
Accruing loans that were classified as TDRs	2,651		2,651		2,449
Non-Accruing	224		224		78
Loans classified as TDRs	$ 2,875		$ 2,875		2,527
Number of TDRs | loan	1		4	1
Pre-Modification Outstanding Recorded Investment	$ 106		$ 670	$ 166
Post-Modification Outstanding Recorded Investment	106		670	$ 166
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family
Troubled debt restructurings
Accruing loans that were classified as TDRs					130
Non-Accruing	707		707		130
Loans classified as TDRs	$ 707		$ 707		260
Number of TDRs | loan	1		3
Pre-Modification Outstanding Recorded Investment	$ 90		$ 624
Post-Modification Outstanding Recorded Investment	90		624
Non-PCI Loans | Real Estate Secured | Farmland
Troubled debt restructurings
Accruing loans that were classified as TDRs	272		272		283
Loans classified as TDRs	$ 272		$ 272		283
Number of TDRs | loan	1		1
Pre-Modification Outstanding Recorded Investment	$ 498		$ 498
Post-Modification Outstanding Recorded Investment	498		498
Non-PCI Loans | Commercial | Commercial and industrial
Troubled debt restructurings
Accruing loans that were classified as TDRs	1,628		1,628		2,177
Non-Accruing	2,806		2,806		1,593
Loans classified as TDRs	$ 4,434		$ 4,434		3,770
Number of TDRs	5	6	9	10
Pre-Modification Outstanding Recorded Investment	$ 1,926	$ 307	$ 2,113	$ 1,227
Post-Modification Outstanding Recorded Investment	$ 1,926	$ 307	$ 2,113	$ 1,227
Troubled Debt Restructurings That Subsequently Defaulted
Number of TDRs | item	1	1	1	1
Recorded Investment		$ 30	$ 18	$ 30
Non-PCI Loans | Commercial | Agriculture
Troubled debt restructurings
Accruing loans that were classified as TDRs	$ 29		29		34
Loans classified as TDRs	29		$ 29		34
Number of TDRs | loan			1	1
Pre-Modification Outstanding Recorded Investment			$ 898	$ 662
Post-Modification Outstanding Recorded Investment			898	$ 662
Non-PCI Loans | Installment
Troubled debt restructurings
Accruing loans that were classified as TDRs	118		118		69
Loans classified as TDRs	118		$ 118		69
Number of TDRs | loan			1	1
Pre-Modification Outstanding Recorded Investment			$ 57	$ 73
Post-Modification Outstanding Recorded Investment			57	$ 73
PCI loans
Troubled debt restructurings
Accruing loans that were classified as TDRs	669		669		260
Non-Accruing	147		147		107
Loans classified as TDRs	816		816		367
PCI loans | Real Estate Secured | Land
Troubled debt restructurings
Accruing loans that were classified as TDRs	50		50
Loans classified as TDRs	$ 50		$ 50
Number of TDRs | loan	1		1
Pre-Modification Outstanding Recorded Investment	$ 50		$ 50
Post-Modification Outstanding Recorded Investment	50		50
PCI loans | Real Estate Secured | Commercial real estate
Troubled debt restructurings
Accruing loans that were classified as TDRs	584		584		223
Non-Accruing	60		60
Loans classified as TDRs	$ 644		$ 644		223
Number of TDRs	4	1	4	1
Pre-Modification Outstanding Recorded Investment	$ 645	$ 617	$ 645	$ 617
Post-Modification Outstanding Recorded Investment	645	$ 617	645	$ 617
PCI loans | Real Estate Secured | Commercial and industrial
Troubled debt restructurings
Number of TDRs		2		2
Pre-Modification Outstanding Recorded Investment		$ 172		$ 172
Post-Modification Outstanding Recorded Investment		$ 172		$ 172
PCI loans | Commercial | Commercial and industrial
Troubled debt restructurings
Accruing loans that were classified as TDRs	35		35		37
Non-Accruing	87		87		107
Loans classified as TDRs	$ 122		$ 122		$ 144

Loans and Allowance for Loan 45

Loans and Allowance for Loan and Lease Losses (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Non-PCI loans by the internal risk grading system
Total Gross loans	$ 1,191,153	$ 1,193,483
Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	1,119,781	1,130,984
Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	22,254	9,874
Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	49,118	52,395
Credit Risk Grades, Doubtful
Non-PCI loans by the internal risk grading system
Total Gross loans		230
Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	984,399	975,603
Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	585,811	588,472
Real Estate Secured | Residential 1 to 4 family
Non-PCI loans by the internal risk grading system
Total Gross loans	143,256	127,201
Real Estate Secured | Farmland
Non-PCI loans by the internal risk grading system
Total Gross loans	104,613	98,373
Real Estate Secured | Multi-family residential
Non-PCI loans by the internal risk grading system
Total Gross loans	76,903	78,645
Real Estate Secured | Home equity lines of credit
Non-PCI loans by the internal risk grading system
Total Gross loans	32,759	38,252
Real Estate Secured | Construction
Non-PCI loans by the internal risk grading system
Total Gross loans	20,969	24,493
Real Estate Secured | Land
Non-PCI loans by the internal risk grading system
Total Gross loans	20,088	20,167
Commercial
Non-PCI loans by the internal risk grading system
Total Gross loans	200,003	209,902
Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	151,401	154,787
Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	48,601	55,101
Commercial | Other
Non-PCI loans by the internal risk grading system
Total Gross loans	1	14
Installment
Non-PCI loans by the internal risk grading system
Total Gross loans	6,499	7,723
Overdrafts
Non-PCI loans by the internal risk grading system
Total Gross loans	252	255
Non-PCI Loans
Non-PCI loans by the internal risk grading system
Total Gross loans	1,181,445	1,183,183
Non-PCI Loans | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	1,119,484	1,130,528
Non-PCI Loans | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	20,797	9,097
Non-PCI Loans | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	41,164	43,404
Non-PCI Loans | Credit Risk Grades, Doubtful
Non-PCI loans by the internal risk grading system
Total Gross loans		154
Non-PCI Loans | Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	977,281	968,110
Non-PCI Loans | Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	580,072	584,056
Non-PCI Loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	551,052	560,478
Non-PCI Loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	6,655	3,010
Non-PCI Loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	22,365	20,568
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family
Non-PCI loans by the internal risk grading system
Total Gross loans	142,692	126,640
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	141,538	125,733
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans		199
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	1,154	708
Non-PCI Loans | Real Estate Secured | Farmland
Non-PCI loans by the internal risk grading system
Total Gross loans	104,613	96,708
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	103,073	92,481
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans		2,665
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	1,540	1,562
Non-PCI Loans | Real Estate Secured | Multi-family residential
Non-PCI loans by the internal risk grading system
Total Gross loans	76,903	78,645
Non-PCI Loans | Real Estate Secured | Multi-family residential | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	67,765	78,023
Non-PCI Loans | Real Estate Secured | Multi-family residential | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	8,666
Non-PCI Loans | Real Estate Secured | Multi-family residential | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	472	622
Non-PCI Loans | Real Estate Secured | Home equity lines of credit
Non-PCI loans by the internal risk grading system
Total Gross loans	32,759	38,252
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	32,168	37,638
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	303
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	288	614
Non-PCI Loans | Real Estate Secured | Construction
Non-PCI loans by the internal risk grading system
Total Gross loans	20,969	24,493
Non-PCI Loans | Real Estate Secured | Construction | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	20,969	24,493
Non-PCI Loans | Real Estate Secured | Land
Non-PCI loans by the internal risk grading system
Total Gross loans	19,273	19,316
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	13,220	12,929
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	6
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	6,047	6,387
Non-PCI Loans | Commercial
Non-PCI loans by the internal risk grading system
Total Gross loans	197,413	207,095
Non-PCI Loans | Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	150,244	153,403
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	136,895	138,202
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	5,067	2,943
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	8,282	12,104
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Doubtful
Non-PCI loans by the internal risk grading system
Total Gross loans		154
Non-PCI Loans | Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	47,168	53,678
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	46,148	52,678
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	99	280
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	921	720
Non-PCI Loans | Commercial | Other
Non-PCI loans by the internal risk grading system
Total Gross loans	1	14
Non-PCI Loans | Commercial | Other | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	1
Non-PCI Loans | Commercial | Other | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans		14
Non-PCI Loans | Installment
Non-PCI loans by the internal risk grading system
Total Gross loans	6,499	7,723
Non-PCI Loans | Installment | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	6,404	7,618
Non-PCI Loans | Installment | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	95	105
Non-PCI Loans | Overdrafts
Non-PCI loans by the internal risk grading system
Total Gross loans	252	255
Non-PCI Loans | Overdrafts | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	252	255
PCI loans
Non-PCI loans by the internal risk grading system
Total Gross loans	9,708	10,300
PCI loans | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	297	456
PCI loans | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	1,457	777
PCI loans | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	7,954	8,991
PCI loans | Credit Risk Grades, Doubtful
Non-PCI loans by the internal risk grading system
Total Gross loans		76
PCI loans | Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	7,118	7,493
PCI loans | Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	5,739	4,416
PCI loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans		126
PCI loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	829	680
PCI loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	4,910	3,610
PCI loans | Real Estate Secured | Residential 1 to 4 family
Non-PCI loans by the internal risk grading system
Total Gross loans	564	561
PCI loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	449
PCI loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	115	561
PCI loans | Real Estate Secured | Farmland
Non-PCI loans by the internal risk grading system
Total Gross loans		1,665
PCI loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans		1,665
PCI loans | Real Estate Secured | Land
Non-PCI loans by the internal risk grading system
Total Gross loans	815	851
PCI loans | Real Estate Secured | Land | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	262	294
PCI loans | Real Estate Secured | Land | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	50
PCI loans | Real Estate Secured | Land | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	503	557
PCI loans | Commercial
Non-PCI loans by the internal risk grading system
Total Gross loans	2,590	2,807
PCI loans | Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	1,157	1,384
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	35	36
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	129	97
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	993	1,175
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Doubtful
Non-PCI loans by the internal risk grading system
Total Gross loans		76
PCI loans | Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	1,433	1,423
PCI loans | Commercial | Agriculture | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	$ 1,433	$ 1,423

Loans and Allowance for Loan 46

Loans and Allowance for Loan and Lease Losses (Details 5) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Aging of loans held for investment
Current	$ 1,179,276	$ 1,182,868
30-59	299	56
60-89		24
Non-Accruing	11,578	10,535
Total	1,191,153	1,193,483
Accretable yield, or income expected to be collected
Balance at the beginning of the period	4,374
Accretion of income	(932)
Reclassifications from nonaccretable difference	1,022
Balance at the end of the period	4,464	4,374
Non-PCI Loans
Aging of loans held for investment
Current	1,169,925	1,172,944
30-59	299	56
60-89		24
Non-Accruing	11,221	10,159
Total	1,181,445	1,183,183
Contractually required payments receivable of loans purchased during the period
Allowance for loan losses	800	1,000
Non-PCI Loans | Real Estate Secured | Commercial real estate
Aging of loans held for investment
Current	577,974	581,971
Non-Accruing	2,098	2,085
Total	580,072	584,056
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family
Aging of loans held for investment
Current	141,985	126,516
Non-Accruing	707	124
Total	142,692	126,640
Non-PCI Loans | Real Estate Secured | Farmland
Aging of loans held for investment
Current	104,613	96,708
Total	104,613	96,708
Non-PCI Loans | Real Estate Secured | Multi-family residential
Aging of loans held for investment
Current	76,903	78,645
Total	76,903	78,645
Non-PCI Loans | Real Estate Secured | Home equity lines of credit
Aging of loans held for investment
Current	32,673	37,994
Non-Accruing	86	258
Total	32,759	38,252
Non-PCI Loans | Real Estate Secured | Construction
Aging of loans held for investment
Current	20,969	24,493
Total	20,969	24,493
Non-PCI Loans | Real Estate Secured | Land
Aging of loans held for investment
Current	14,519	14,079
Non-Accruing	4,754	5,237
Total	19,273	19,316
Non-PCI Loans | Commercial | Commercial and industrial
Aging of loans held for investment
Current	147,035	151,656
30-59	299
60-89		21
Non-Accruing	2,910	1,726
Total	150,244	153,403
Non-PCI Loans | Commercial | Agriculture
Aging of loans held for investment
Current	46,542	52,992
Non-Accruing	626	686
Total	47,168	53,678
Non-PCI Loans | Commercial | Other
Aging of loans held for investment
Current	1	14
Total	1	14
Non-PCI Loans | Installment
Aging of loans held for investment
Current	6,459	7,621
30-59		56
60-89		3
Non-Accruing	40	43
Total	6,499	7,723
Non-PCI Loans | Overdrafts
Aging of loans held for investment
Current	252	255
Total	252	255
PCI loans
Aging of loans held for investment
Current	9,351	9,924
Non-Accruing	357	376
Total	9,708	10,300
Unpaid Principal Balance	12,179	13,390
Carrying Amount	9,708	10,300
Contractually required payments receivable of loans purchased during the period
Allowance for loan losses	91	0
PCI loans | Real Estate Secured
Aging of loans held for investment
Unpaid Principal Balance	9,090	10,015
Carrying Amount	7,118	7,493
PCI loans | Real Estate Secured | Commercial real estate
Aging of loans held for investment
Current	5,679	4,416
Non-Accruing	60
Total	5,739	4,416
Unpaid Principal Balance	7,270	6,109
Carrying Amount	5,739	4,416
PCI loans | Real Estate Secured | Residential 1 to 4 family
Aging of loans held for investment
Current	564	561
Total	564	561
Unpaid Principal Balance	880	886
Carrying Amount	564	561
PCI loans | Real Estate Secured | Farmland
Aging of loans held for investment
Current		1,665
Total		1,665
Unpaid Principal Balance		2,027
Carrying Amount		1,665
PCI loans | Real Estate Secured | Land
Aging of loans held for investment
Current	815	851
Total	815	851
Unpaid Principal Balance	940	993
Carrying Amount	815	851
PCI loans | Commercial
Aging of loans held for investment
Unpaid Principal Balance	3,089	3,375
Carrying Amount	2,590	2,807
PCI loans | Commercial | Commercial and industrial
Aging of loans held for investment
Current	860	1,008
Non-Accruing	297	376
Total	1,157	1,384
Unpaid Principal Balance	1,597	1,883
Carrying Amount	1,157	1,384
PCI loans | Commercial | Agriculture
Aging of loans held for investment
Current	1,433	1,423
Total	1,433	1,423
Unpaid Principal Balance	1,492	1,492
Carrying Amount	$ 1,433	$ 1,423

Loans and Allowance for Loan 47

Loans and Allowance for Loan and Lease Losses (Details 6) - USD ($) $ in Thousands	Feb. 28, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		$ 16,913	$ 17,968	$ 16,802	$ 17,859	$ 17,859
Charge-offs		(164)	(1,670)	(237)	(1,764)
Recoveries		233	337	417	540
Balance, at the end of the period		16,982	16,635	16,982	16,635	16,802
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment		1,557		1,557		1,771
Allowance for loan and lease losses collectively evaluated for impairment		15,334		15,334		15,031
Allowance for Loans acquired with deteriorated credit quality		91		91
Recorded investment in loan individually evaluated for impairment		17,180		17,180		16,390
Recorded investment in loan collectively evaluated for impairment		1,164,265		1,164,265		1,166,752
Recorded investment in loans acquired with deteriorated credit quality		9,708		9,708		10,341
Total gross loans held for investment		1,191,153		1,191,153		1,193,483
Non-PCI Loans
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period				16,802
Balance, at the end of the period		16,891		16,891		16,802
Amount of allowance attributed to:
Total gross loans held for investment		1,181,445		1,181,445		1,183,183
Allowance for loan and lease losses				800		1,000
PCI loans
Allocation of the allowance to various segments in the loan portfolio
Balance, at the end of the period		91		91
Amount of allowance attributed to:
Total gross loans held for investment		9,708		9,708		10,300
Allowance for loan and lease losses				91		0
MISN
Amount of allowance attributed to:
Total gross loans held for investment		202,200		202,200		239,700
Allowance for loan and lease losses	$ 0
MISN | PCI loans
Amount of allowance attributed to:
Total gross loans held for investment		9,700		9,700		10,300
Commercial
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		4,495	4,898	5,125	4,781	4,781
Charge-offs		(143)	(650)	(143)	(650)
Recoveries		142	279	309	454
Provision for loan and lease losses		499	(91)	(298)	(149)
Balance, at the end of the period		4,993	4,436	4,993	4,436	5,125
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment		118		118		151
Allowance for loan and lease losses collectively evaluated for impairment		4,837		4,837		4,974
Allowance for Loans acquired with deteriorated credit quality		38		38
Recorded investment in loan individually evaluated for impairment		5,192		5,192		4,633
Recorded investment in loan collectively evaluated for impairment		192,221		192,221		202,450
Recorded investment in loans acquired with deteriorated credit quality		2,590		2,590		2,819
Total gross loans held for investment		200,003		200,003		209,902
Commercial | Non-PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment		197,413		197,413		207,095
Commercial | PCI loans
Amount of allowance attributed to:
Total gross loans held for investment		2,590		2,590		2,807
Installment
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		163	87	172	99	99
Charge-offs		(5)	(4)	(5)	(6)
Recoveries		5	4	8	9
Provision for loan and lease losses		(18)	(14)	(30)	(29)
Balance, at the end of the period		145	73	145	73	172
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment		145		145		172
Recorded investment in loan individually evaluated for impairment		157		157		112
Recorded investment in loan collectively evaluated for impairment		6,342		6,342		7,611
Total gross loans held for investment		6,499		6,499		7,723
Installment | Non-PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment		6,499		6,499		7,723
All other loans
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		27	26	30	32	32
Provision for loan and lease losses		(1)	1	(4)	(5)
Balance, at the end of the period		26	27	26	27	30
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment		26		26		30
Recorded investment in loan collectively evaluated for impairment		252		252		255
Unallocated
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		810	405	346	262	262
Provision for loan and lease losses		(567)	(107)	(103)	36
Balance, at the end of the period		243	298	243	298	346
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment		243		243		346
Land
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period					3,402	3,402
Recoveries					22
Provision for loan and lease losses					(480)
Balance, at the end of the period			2,944		2,944
Other real estate secured
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		9,770	9,397	9,474	9,283	9,283
Charge-offs		(16)	(1,016)	(55)	(1,108)
Recoveries		74	39	77	55
Provision for loan and lease losses		190	437	522	627
Balance, at the end of the period		10,018	8,857	10,018	8,857	9,474
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment		100		100		148
Allowance for loan and lease losses collectively evaluated for impairment		9,873		9,873		9,326
Allowance for Loans acquired with deteriorated credit quality		45		45
Recorded investment in loan individually evaluated for impairment		5,814		5,814		5,299
Recorded investment in loan collectively evaluated for impairment		952,194		952,194		943,468
Recorded investment in loans acquired with deteriorated credit quality		6,303		6,303		6,669
Land
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		1,648	3,155	1,655
Charge-offs				(34)
Recoveries		12	15	23
Provision for loan and lease losses		(103)	(226)	(87)
Balance, at the end of the period		1,557	$ 2,944	1,557	$ 2,944	1,655
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment		1,339		1,339		1,472
Allowance for loan and lease losses collectively evaluated for impairment		210		210		183
Allowance for Loans acquired with deteriorated credit quality		8		8
Recorded investment in loan individually evaluated for impairment		6,017		6,017		6,346
Recorded investment in loan collectively evaluated for impairment		13,256		13,256		12,968
Recorded investment in loans acquired with deteriorated credit quality		$ 815		$ 815		$ 853

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Income Taxes
Deferred tax valuation allowance	$ 0	$ 0
Deferred tax assets	23,180	$ 24,920
Loss of NOL utilization	$ 0

Goodwill and Other Intangible49

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Goodwill and Other Intangible Assets
Goodwill	$ 24,885		$ 24,885		$ 24,885
Core deposit intangible
Other Intangible Assets, Net	4,823		4,823		5,347
Amortization of intangible assets	262	$ 297	524	$ 463
Gross Carrying Amount	9,261		9,261
Accumulated Amortization	(4,438)		(4,438)
Net Carrying Amount	4,823		4,823
Estimated Amortization
Year 2,015	(525)		(525)
Year 2,016	(944)		(944)
Year 2,017	(588)		(588)
Year 2,018	(549)		(549)
Year 2,019	(522)		(522)
Year 2,020	(441)		(441)
Year 2,015
Core deposit intangible
Net Carrying Amount	4,298		4,298		4,823
Year 2,016
Core deposit intangible
Net Carrying Amount	3,354		3,354		4,298
Year 2,017
Core deposit intangible
Net Carrying Amount	2,766		2,766		3,354
Year 2,018
Core deposit intangible
Net Carrying Amount	2,217		2,217		2,766
Year 2,019
Core deposit intangible
Net Carrying Amount	1,695		1,695		2,217
Year 2,020
Core deposit intangible
Net Carrying Amount	$ 1,254		$ 1,254		$ 1,695

Share-based Compensation Plan50

Share-based Compensation Plans (Details) $ / shares in Units, $ in Thousands	Jun. 30, 2015USD ($)plan$ / sharesshares	Jun. 30, 2015USD ($)plan$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)plan$ / sharesshares	Jun. 30, 2014USD ($)$ / shares	Dec. 31, 2014planshares
Summary of the expenses the Company has recognized related to share-based compensation
Aggregate number of shares that may be granted during any calendar year per individual				250,000
Share-based compensation expense | $		$ 294	$ 218	$ 535	$ 466
Unrecognized compensation expense | $	$ 2,008	$ 2,008	1,951	$ 2,008	1,951
Number of shares
Expired (in shares)				(11,812)
Weighted Average Exercise Price
Expired (in dollars per share) | $ / shares				$ 13.18
2015 Equity Incentive Plan
Summary of the expenses the Company has recognized related to share-based compensation
Number of share-based employee compensation plans | plan	1	1		1
1997 Stock Option Plan and 2005 Equity Based Compensation Plan
Summary of the expenses the Company has recognized related to share-based compensation
Number of share-based employee compensation plans | plan						2
Number of Shares
Granted (in shares)	0
Maximum | 2015 Equity Incentive Plan
Summary of the expenses the Company has recognized related to share-based compensation
Maximum number of shares that may be issued	2,500,000	2,500,000		2,500,000
Stock options
Summary of the expenses the Company has recognized related to share-based compensation
Share-based compensation expense | $		$ 136	97	$ 248	261
Unrecognized compensation expense | $	$ 1,109	$ 1,109	1,043	$ 1,109	$ 1,043
Weighted-average period over which expense is expected to be recognized				2 years 8 months 12 days
Assumptions used in the calculation of the weighted average fair value of options granted
Expected volatility (as a percent)				38.04%	53.22%
Expected term				5 years	6 years
Dividend yield (as a percent)				2.58%	0.00%
Risk free rate (as a percent)				1.57%	1.80%
Weighted-average grant date fair value (in dollars per share) | $ / shares				$ 2.15	$ 3.91
Number of shares
Options Available for Grant (in shares)	2,473,937	2,473,937		2,473,937		2,003,176
Options outstanding, at the beginning of the period (in shares)				742,557
Granted (in shares)				226,090
Forfeited (in shares)				(65,973)
Exercised (in shares)				(40,344)
Options outstanding, at the end of the period (in shares)	850,518	850,518		850,518
Weighted Average Exercise Price
Options outstanding, at the beginning of the period (in dollars per share) | $ / shares				$ 6.83
Granted (in dollars per share) | $ / shares				7.84
Forfeited (in dollars per share) | $ / shares				6.86
Exercised (in dollars per share) | $ / shares				4.72
Options outstanding, at the end of the period (in dollars per share) | $ / shares	$ 7.11	$ 7.11		$ 7.11
Options vested or expected to vest
Shares	807,690	807,690		807,690
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 7.09	$ 7.09		$ 7.09
Weighted Average Remaining Contractual Life				7 years 10 months 6 days
Aggregate Intrinsic Value | $	$ 936,736	$ 936,736		$ 936,736
Options exercisable
Shares	301,229	301,229		301,229
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 6.84	$ 6.84		$ 6.84
Weighted Average Remaining Contractual Life				6 years 4 days
Aggregate Intrinsic Value | $	$ 618,389	$ 618,389		$ 618,389
Aggregate intrinsic value of options exercised
Aggregate intrinsic value of options exercised | $				$ 139
Stock options | Minimum
Summary of the expenses the Company has recognized related to share-based compensation
Vesting period				3 years
Stock options | Maximum
Summary of the expenses the Company has recognized related to share-based compensation
Vesting period				5 years
Restricted stock
Summary of the expenses the Company has recognized related to share-based compensation
Share-based compensation expense | $		158	121	$ 287	$ 205
Unrecognized compensation expense | $	$ 899	$ 899	$ 908	$ 899	$ 908
Weighted-average period over which expense is expected to be recognized				2 years 4 months 24 days
Number of Shares
Balance at the beginning of the period (in shares)				204,121
Granted (in shares)				40,353
Vested (in shares)				(38,940)
Forfeited (in shares)				(14,194)
Balance at the end of the period (in shares)	191,340	191,340		191,340
Average Grant Date fair Value
Balance at the beginning of the period (in dollars per share) | $ / shares				$ 6.65
Granted (in dollars per share) | $ / shares				7.83
Vested (in dollars per share) | $ / shares				6.06
Forfeited (in dollars per share) | $ / shares				6.85
Balance at the end of the period (in dollars per share) | $ / shares	$ 7.01	$ 7.01		$ 7.01
Restricted stock | Minimum
Summary of the expenses the Company has recognized related to share-based compensation
Vesting period				3 years
Restricted stock | Maximum
Summary of the expenses the Company has recognized related to share-based compensation
Vesting period				5 years
Performance-based
Average Grant Date fair Value
Performance based grant (in shares)				23,408

Shareholders' Equity (Details)

Shareholders' Equity (Details)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Shareholders' Equity
Capital conservation buffer (as a percent)	2.50%
Capital conservation buffer for 2016 (as a percent)	0.625%
Capital conservation buffer for 2017 (as a percent)	1.25%
Capital conservation buffer for 2018 (as a percent)	1.875%
Capital conservation buffer for 2019 (as a percent)	2.50%
Common equity Tier I Capital
Regulatory Standard, Common equity Tier I Capital Well Capitalized Ratio (as a percent)	6.50%
Leverage ratio
Regulatory Standard, Leverage ratio Well Capitalized Ratio (as a percent)	5.00%	5.00%
Tier I capital to risk weighted assets
Regulatory Standard, Well Capitalized Ratio (as a percent)	8.00%	6.00%
Total risk based capital to risk weighted assets
Regulatory Standard, Total risk based capital Well Capitalized Ratio (as a percent)	10.00%	10.00%
Minimum
Shareholders' Equity
CET I to risk-weighted assets	4.50%
Total risk based capital to risk weighted assets
Regulatory Standard, Total risk based capital Well Capitalized Ratio (as a percent)	6.50%
Weighted Average Category One
Shareholders' Equity
Ratio risk-weighted assets (as a percent)	0.00%
Weighted Average Category Two
Shareholders' Equity
Ratio risk-weighted assets (as a percent)	20.00%
Weighted Average Category Three
Shareholders' Equity
Ratio risk-weighted assets (as a percent)	50.00%
Weighted Average Category Four
Shareholders' Equity
Ratio risk-weighted assets (as a percent)	100.00%
Heritage Oaks Bancorp
Common equity Tier I Capital
Actual regulatory, Common equity Tier I Capital Ratio (as a percent	12.96%
Leverage ratio
Actual regulatory, Leverage ratio (as a percent)	10.22%	10.22%	9.83%
Tier I capital to risk weighted assets
Actual regulatory, Tier I capital (as a percent)	13.55%	13.13%	12.85%
Total risk based capital to risk weighted assets
Actual regulatory, Total risk based capital (as a percent)	14.80%	14.38%	14.10%
Heritage Oaks Bank
Common equity Tier I Capital
Actual regulatory, Common equity Tier I Capital Ratio (as a percent	12.48%
Leverage ratio
Actual regulatory, Leverage ratio (as a percent)	9.41%	9.83%	9.53%
Tier I capital to risk weighted assets
Actual regulatory, Tier I capital (as a percent)	12.48%	12.63%	12.45%
Total risk based capital to risk weighted assets
Actual regulatory, Total risk based capital (as a percent)	13.73%	13.88%	13.70%

Shareholders' Equity (Details 2

Shareholders' Equity (Details 2) - USD ($) $ / shares in Units, $ in Thousands	Jul. 22, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Sep. 30, 2014	Jun. 01, 2015	Mar. 02, 2015	Dec. 31, 2014
Preferred Stock
Preferred stock, shares authorized		5,000,000		5,000,000		5,000,000				5,000,000
Cash dividend per share								$ 0.06	$ 0.05
Cash dividend declared (in dollars per share)		$ 0.06		$ 0.11
Dividend Paid			$ 0		$ 0
Preferred Stock, Shares Outstanding		0		0		0
Repurchase of shares amount authorized										$ 5,000
Shares repurchased						55,428
Average price per share stock repurchase						$ 7.47
Subsequent Event
Preferred Stock
Cash dividend declared (in dollars per share)	$ 0.06
Series C preferred stock
Preferred Stock
Issuance of stock (in shares)				348,697
Conversion price (in dollars per share)							$ 3.25
Remaining beneficial conversion feature		$ 70

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Calculation of both basic and diluted earnings (loss) per common share
Net income	$ 3,800	$ 2,949	$ 7,869	$ 1,186
Accretion on preferred stock	70		70
Net income available to common shareholders	$ 3,730	$ 2,949	$ 7,799	$ 1,186
Weighted average shares outstanding	34,105,192	33,967,670	34,086,786	31,487,059
Basic earnings per common share (in dollars per share)	$ 0.11	$ 0.09	$ 0.23	$ 0.04
Dilutive effect of share-based compensation awards (in shares)	144,399	174,694	150,109	219,118
Weighted average diluted shares outstanding	34,249,591	34,142,364	34,236,895	31,706,177
Diluted earnings per common share (in dollars per share)	$ 0.11	$ 0.09	$ 0.23	$ 0.04
Stock options
Shares excluded from the calculation of diluted earnings per share
Shares excluded from the calculation of diluted earnings per share	99,000	116,000	408,000	293,000

Commitments and Contingencies54

Commitments and Contingencies (Details) - Heritage Oaks Bank - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Commitments and Contingencies
Total commitments and standby letters of credit	$ 258,122	$ 253,275
Outstanding financial fixed rate commitments	28,000	35,700
Outstanding financial variable rate commitments	230,100	217,500
Commitments to extend credit
Commitments and Contingencies
Total commitments and standby letters of credit	244,300	237,733
Standby letters of credit
Commitments and Contingencies
Total commitments and standby letters of credit	$ 13,822	$ 15,542

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Jul. 22, 2015	Jun. 30, 2015	Jun. 30, 2015
Subsequent events
Cash dividend declared (in dollars per share)		$ 0.06	$ 0.11
Subsequent Event
Subsequent events
Cash dividend declared (in dollars per share)	$ 0.06