Heritage Oaks Bancorp (HEOP) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document and Entity Information
Entity Registrant Name	HERITAGE OAKS BANCORP
Entity Central Index Key	921,547
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
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		34,195,314
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 14,804	$ 15,610
Interest earning deposits in other banks	38,771	54,313
Total cash and cash equivalents	53,575	69,923
Investment securities available for sale, at fair value	441,705	450,935
Loans held for sale, at lower of cost or fair value	6,560	9,755
Gross loans held for investment	1,291,346	1,247,280
Deferred loan fees	(1,160)	(1,132)
Allowance for loan and lease losses	(17,565)	(17,452)
Net loans held for investment	1,272,621	1,228,696
Premises and equipment, net	36,843	37,342
Bank-owned life insurance	33,069	32,850
Goodwill	24,885	24,885
Deferred tax assets, net	18,715	21,272
Federal Home Loan Bank stock	7,853	7,853
Other intangible assets, net	4,055	4,298
Other assets	13,239	11,930
Total assets	1,913,120	1,899,739
Liabilities
Non-interest bearing deposits	524,025	514,559
Interest bearing deposits	1,058,564	1,050,402
Total deposits	1,582,589	1,564,961
Short term FHLB borrowing	29,500	38,500
Long term FHLB borrowing	73,512	65,021
Junior subordinated debentures	10,485	10,438
Other liabilities	8,704	14,385
Total liabilities	1,704,790	1,693,305
Shareholders' Equity
Common stock, no par value; authorized: 100,000,000 shares; issued and outstanding: 34,129,425 shares and 34,353,014 shares as of March 31, 2016 and December 31, 2015, respectively.	163,923	165,517
Additional paid in capital	8,460	8,251
Retained earnings	34,134	32,200
Accumulated other comprehensive income	1,813	466
Total shareholders' equity	208,330	206,434
Total liabilities and shareholders' equity	$ 1,913,120	$ 1,899,739

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Common stock
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	34,129,425	34,353,014
Common stock, shares outstanding	34,129,425	34,353,014

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Income
Loans, including fees	$ 14,615	$ 15,088
Investment securities	2,200	1,667
Other interest-earning assets	200	173
Total interest income	17,015	16,928
Interest Expense
Deposits	879	889
Other borrowings	518	541
Total interest expense	1,397	1,430
Net interest income before provision for loan losses	15,618	15,498
Net interest income after provision for loan and lease losses	15,618	15,498
Non-Interest Income
Fees and service charges	1,287	1,207
Gain on sale of investment securities	551	505
Gain on derivative instruments	532
Net gain on sale of mortgage loans	458	386
Earnings on BOLI	287	211
Other mortgage fee income	91	138
Other income	201	554
Total non-interest income	3,407	3,001
Non-Interest Expense
Salaries and employee benefits	6,318	6,259
Professional services	1,627	1,587
Occupancy and equipment	1,886	1,406
Information technology	600	601
Regulatory assessments	310	297
Sales and marketing	244	317
Amortization of intangible assets	243	262
OREO Write-downs	217
Loan department expense	213	286
Communication costs	125	141
Other expense	838	657
Total non-interest expense	12,621	11,813
Income before income taxes	6,404	6,686
Income tax expense	2,419	2,617
Net income	$ 3,985	$ 4,069
Earnings Per Common Share
Basic (in dollars per share)	$ 0.12	$ 0.12
Diluted (in dollars per share)	0.12	0.12
Dividends Declared Per Common Share (in dollars per share)	$ 0.06	$ 0.05

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 3,985	$ 4,069
Other comprehensive income, net of tax:
Unrealized holding gains on securities arising during the period	2,875	2,755
Reclassification for net gains on investments included in net income	(551)	(505)
Other comprehensive income, before income tax expense	2,324	2,250
Income tax expense related to items of other comprehensive income	977	946
Other comprehensive income	1,347	1,304
Comprehensive income	$ 5,332	$ 5,373

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 Income	Total
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				(1,713)		(1,713)
Exercise of stock options		$ 75				75
Exercise of stock options (in shares)		17,353
Share-based compensation			241			241
Tax benefit of share-based compensation			27			27
Net issuance (forfeitures) of restricted share awards (in shares)		28,105
Net income				4,069		4,069
Other comprehensive income					1,304	1,304
Balance at Mar. 31, 2015	$ 1,056	$ 164,271	7,252	27,128	2,236	201,943
Balance (in shares) at Mar. 31, 2015		33,950,518
Balance at Dec. 31, 2015		$ 165,517	8,251	32,200	466	206,434
Balance (in shares) at Dec. 31, 2015		34,353,014
Increase (Decrease) in Stockholders' Equity
Dividends declared				(2,051)		(2,051)
Repurchases of shares		$ (1,635)				(1,635)
Repurchases of shares (in shares)		(226,170)
Exercise of stock options		$ 41				41
Exercise of stock options (in shares)		6,830
Share-based compensation			207			207
Tax benefit of share-based compensation			2			2
Net issuance (forfeitures) of restricted share awards (in shares)		(4,249)
Net income				3,985		3,985
Other comprehensive income					1,347	1,347
Balance at Mar. 31, 2016		$ 163,923	$ 8,460	$ 34,134	$ 1,813	$ 208,330
Balance (in shares) at Mar. 31, 2016		34,129,425

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Consolidated Statements of Shareholders' Equity
Cash dividend declared (in dollars per share)	$ 0.06	$ 0.05

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities
Net income	$ 3,985	$ 4,069
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	544	479
Write-downs on premises and equipment held for sale		138
Amortization of premiums / discounts	1,783	1,482
Amortization of intangible assets	243	262
Accretion of discount on acquired and purchased loans, net	(223)	(907)
Share-based compensation expense	207	241
Gain on sale of available for sale securities	(551)	(505)
Gain on sale of loans held for sale	(458)	(386)
Originations of loans held for sale	(29,402)	(40,038)
Proceeds from sale of loans held for sale	33,055	33,517
Net increase in bank owned life insurance	(219)	(160)
Decrease in deferred tax assets	1,580	1,466
Write-downs on OREO	217
Tax impact of share-based compensation	(2)	(27)
Decrease in other assets and other liabilities, net	(1,210)	257
Net cash provided by (used in) operating activities	9,549	(112)
Cash Flows from Investing Activities
Purchase of securities, available for sale	(58,049)	(65,085)
Sale of securities, available for sale	57,279	46,528
Proceeds from principal paydowns of securities, available for sale	11,127	10,954
Increase in loans, net	(49,820)	(13,659)
Recoveries on previously charged-off loans	123	184
Purchase of property, premises and equipment, net	(45)	(772)
Net cash used in investing activities	(39,385)	(21,850)
Cash Flows from Financing Activities
Increase in deposits, net	17,631	65,471
Proceeds from Federal Home Loan Bank borrowing	70,000	36,000
Repayments of Federal Home Loan Bank borrowing	(70,500)	(38,000)
Proceeds from exercise of stock options, including tax benefits	43	102
Dividends paid	(2,051)	(1,713)
Repurchases of common stock	(1,635)
Net cash provided by financing activities	13,488	61,860
Net (decrease) increase in cash and cash equivalents	(16,348)	39,898
Cash and cash equivalents, beginning of period	69,923	35,580
Cash and cash equivalents, end of period	53,575	75,478
Cash Flow Information
Interest paid	1,386	1,348
Income taxes paid	1,300
Non-Cash Flow Information
Change in unrealized gain on available for sale securities	$ 2,875	2,755
Loans transferred to foreclosed assets		$ 433

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
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 2015 Annual Report filed on Form 10-K with the Securities and Exchange Commission on March 4, 2016; 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. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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. 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 2015 Annual Report filed on Form 10-K. There have been no changes to these policies or their application during the three months ended March 31, 2016. Recent Accounting Standards Updates Recent Accounting Guidance Adopted In September, 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement Period Adjustments (Topic 805). This ASU eliminates the requirement to restate prior period financial statements for measurement period adjustments to assets acquired and liabilities assumed in a business combination. The new guidance under this update requires the cumulative impact of measurement period adjustments be recognized in the period the adjustment is determined. This update does not change what constitutes a measurement period adjustment, nor does it change the length of the measurement period. The new standard is effective for interim annual periods beginning after December 15, 2015 and should be applied prospectively to measurement period adjustments that occur after the effective date. This update did not have an impact on the Company’s condensed consolidated financial statements. Recent Accounting Guidance Not Yet Effective In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). This update simplifies several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flow. The new guidance under the update requires all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit on the income statement. The amendments within the update are effective for fiscal years and all interim periods beginning after December 31, 2016, with early adoption permitted. 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 financial statements. In February 2016-02, the FASB issued ASU 2016-02, Leases (Topic 842). This update improves the understanding and comparability of lessees’ financial commitments by requiring lease assets and lease liabilities to be recognized on the balance sheet for those leases classified as operating leases under current U.S. GAAP. This ASU requires a lessee to recognize on the balance sheet a lease liability to make lease payments and a right of use asset, representing the right to use the underlying asset, during the term of the lease. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, using a modified retrospective approach, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption of this update will have on its financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825). The amendments in this update require that public entities measure equity investments with readily determinable fair values, at fair value, with changes in their fair value recorded through net income. This ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. The amendments within the update are effective for fiscal years and all interim periods beginning after December 15, 2017. 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 financial statements. 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 financial statements.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	3 Months Ended
	Mar. 31, 2016
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	Note 2. Fair Value of Assets and Liabilities Recurring Basis The following table provides a summary of the financial instruments the Company measures at fair value on a recurring basis as of March 31, 2016 and December 31, 2015: As of Fair Value Measurements Using March 31, Quoted Prices in Significant Other Significant 2016 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Available for sale investments: 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 - - Other investments - - Derivative financial instruments: Interest rate swaps - Total assets measured on a recurring basis $ $ $ $ - Liabilities Derivative financial instruments: Interest rate swaps $ $ - $ $ - Total liabilities measured on a recurring basis $ $ - $ $ - As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 2015 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Available for sale investments: 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 - - Other investments - - Derivative financial instruments: Interest rate swaps - - - - Total assets measured on a recurring basis $ $ $ $ - Liabilities Derivative financial instruments: Interest rate swaps $ - $ - $ - $ - Total liabilities measured on a recurring basis $ - $ - $ - $ - There were no transfers between levels of fair value measures during the three months ended March 31, 2016 and December 31, 2015 for assets measured at fair value on a recurring basis. As of March 31, 2016 and December 31, 2015, there were no assets or liabilities classified as Level 3. 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 that were recognized at fair value which was below cost. Certain impaired loans are recorded in the Company’s condensed consolidated financial statements using 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 considered a market rate for those loans. The discounted cash flow approach is used to measure impairment for certain impaired loans, because of the significant payment history and the global cash flow analysis performed on each borrower. As of Fair Value Measurements Using March 31, Quoted Prices in Significant Other Significant 2016 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 Other real estate owned $ $ - $ $ - $ Total assets measured on a non-recurring basis $ $ - $ $ - $ As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 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 Other real estate owned $ - $ - $ - $ - $ - Total assets measured on a non-recurring basis $ - $ - $ - $ - $ - There were no transfers between levels of fair value measures during the three months ended March 31, 2016 for assets measured at fair value on a non-recurring basis. Fair Value of Financial Instruments The following table provides a summary of the estimated fair value of financial instruments at March 31, 2016 and December 31, 2015: Fair Value Measurements Using As of Quoted Prices in Significant Other Significant March 31, 2016 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 - - Loans held for sale - - Interest rate swaps - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Interest rate swaps - - Accrued interest payable - - Fair Value Measurements Using As of Quoted Prices in Significant Other Significant December 31, 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 - - Loans held for sale - - Interest rate swaps - - - - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Interest rate swaps - - - - - Accrued interest payable - - Information on off-balance sheet instruments as of March 31, 2016 and December 31, 2015 follows: March 31, 2016 December 31, 2015 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	3 Months Ended
	Mar. 31, 2016
Investment Securities
Investment Securities	Note 3. 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 at March 31, 2016 and December 31, 2015: March 31, 2016 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair 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 - Other investments - Total available for sale securities $ $ $ $ December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair 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 - Other investments - Total available for sale securities $ $ $ $ Those investment securities available for sale which have an unrealized loss position at March 31, 2016 and December 31, 2015 are detailed below: March 31, 2016 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 - - Other investments - - Total $ $ $ $ $ $ December 31, 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 - - Other investments - - Total $ $ $ $ $ $ A total of 70 and 104 securities were in an unrealized loss position as of March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016, the Company believes that unrealized losses on its investment securities are not attributable to credit quality, but rather fluctuations in market prices. In the case of the agency mortgage related securities, contractual cash flows are 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. As of March 31, 2016, the Company does not believe unrealized losses related to any of its securities are other than temporary. The proceeds from the sales and calls of securities and the associated gains and losses for the three months ended March 31, 2016 and 2015 are listed below: Three Months Ended March 31, 2016 2015 (dollars in thousands) Proceeds $ $ Gross gains Gross losses The income tax expense related to these net realized gains was $0.2 million for the three months ended March 31, 2016 and 2015. The table below provides a maturity distribution of available for sale investment securities at March 31, 2016 and December 31, 2015. The table reflects the expected lives of mortgage-backed securities, based on the Company’s historical prepayment experience, because borrowers have the right to prepay obligations without prepayment penalties. Included in the Company’s mortgage-backed securities are Home Equity Conversion Mortgages, which typically possess prepayment characteristics that differ from traditional mortgage-backed securities, such that prepayment activity is not as closely correlated with changes in interest rates. Contractual maturities are reflected for all other security types. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2016 December 31, 2015 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 $160.9 million and $163.9 million, respectively at March 31, 2016, and $153.9 million and $155.2 million, respectively at December 31, 2015 were pledged to secure public deposits. At March 31, 2016 and December 31, 2015, 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 investment securities, both taxable, and those that are exempt from federal taxation for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 (dollars in thousands) Taxable earnings on investment securities Obligations of U.S. government agencies $ $ Mortgage backed securities State and municipal securities Asset backed securities Earnings on investment securities exempt from federal taxation State and municipal securities Total $ $

Loans and Allowance for Loan an

Loans and Allowance for Loan and Lease Losses	3 Months Ended
	Mar. 31, 2016
Loans and Allowance for Loan and Lease Losses
Loans and Allowance for Loan and Lease Losses	Note 4. Loans and Allowance for Loan and Lease Losses The following table provides a summary of outstanding loan balances as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Non-PCI PCI Total Loans Non-PCI PCI Total Loans Loans Loans Receivable Loans Loans Receivable (dollars in thousands) Real Estate Secured Commercial $ $ $ $ $ $ Residential 1 to 4 family Farmland - - Multi-family residential - - Construction and land Home equity lines of credit - - Total real estate secured Commercial Commercial and industrial Agriculture Total commercial Consumer - - Total loans held for investment Deferred loan fees - - Allowance for loan and lease losses Total net loans held for investment $ $ $ $ $ $ Loans held for sale $ $ - $ $ $ - $ Non-PCI acquired loans totaled $151.7 million and $163.8 million as of March 31, 2016 and December 31, 2015, respectively, and are included in total non-PCI loans in the table above. The decline in these loan balances is attributable to loan prepayments, payoffs, and scheduled principal reduction. Loans held for sale consist of single-family residential mortgage loans under contract to be sold in the secondary market. In most cases these loans are sold within thirty to sixty days. Concentration of Credit Risk The Company held loans that were collateralized by various forms of real estate, including residential 1 to 4 family loans originated and held for sale, totaling $1.1 billion at March 31, 2016 and $1.0 billion at December 31, 2015, 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 assurance 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 Company’s consolidated financial statements. The unpaid principal balance of loans serviced for others, exclusive of Small Business Administration (“SBA”) loans, was $32.4 million and $38.0 million at March 31, 2016 and December 31, 2015, respectively. Periodically, the Company originates SBA loans for sale for which it retains the servicing of the guaranteed portion of the loan sold. At March 31, 2016 and December 31, 2015, the unpaid principal balance of SBA loans serviced for others totaled $7.9 million and $8.5 million, respectively. The Company did not sell any SBA loans as of March 31, 2016. The gain on sale of SBA loans is included as a component of other income in non-interest income. Pledged Loans At March 31, 2016, the Bank has pledged $656.9 million of loans to the FHLB of San Francisco to secure a credit facility totaling $453.1 million under a blanket lien. Of this credit facility, $10.2 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 of San Francisco, which is secured by $5.0 million of loans at March 31, 2016. Purchased Credit Impaired Loans As part of the acquisition of Mission Community Bancorp in 2014 (the “MISN Transaction”), the Company acquired certain loans classified as PCI loans. These loans have exhibited evidence of deterioration in credit quality since their origination, and at their acquisition it was deemed probable all contractually required payments would not be collected. The table below summarizes the unpaid principal balance and carrying amount of PCI loans as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Unpaid Principal Balance Carrying Amount Unpaid Principal Balance Carrying Amount (dollars in thousands) Real Estate Secured Commercial $ $ $ $ Residential 1 to 4 family Construction and land Total real estate secured Commercial Agriculture Commercial and industrial Total commercial Total PCI loans $ $ $ $ The following table summarizes activity in the accretable yield, or income expected to be collected on PCI loans for the three months ended March 31, 2016 and 2015: For the Three Months Ended, March 31, 2016 2015 (dollars in thousands) Beginning balance $ $ Accretion of income Reclassifications from nonaccretable difference (1) Ending balance $ $ (1) Reclassification from nonaccretable difference is attributed to positive changes in expected future cash flows on PCI loans. Impaired Loans The following tables provide a summary of the Company’s recorded investment in non-PCI and PCI impaired loans as of and for the periods presented: March 31, 2016 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured Construction and land $ $ $ - $ $ Commercial - Farmland - Residential 1 to 4 family - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total - With Related Allowance Real Estate Secured Commercial Commercial Commercial and industrial Agriculture Total Total Non-PCI impaired loans $ $ $ $ $ March 31, 2016 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ Residential 1 to 4 family - Construction and land - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Construction and land Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ For the Three Months Ended December 31, 2015 March 31, 2015 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured Construction and land $ $ $ - $ $ Commercial - Residential 1 to 4 family - - Farmland - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total - With Related Allowance Real Estate Secured Commercial - Land - - - Commercial Commercial and industrial Agriculture - - Total Total Non-PCI impaired loans $ $ $ $ $ For the Three Months Ended December 31, 2015 March 31, 2015 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ Residential 1 to 4 family - Construction and land - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Construction and land Residential 1 to 4 family - - - Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ The Company did not record income from the receipt of cash payments related to non-accruing loans during the periods ended March 31, 2016 and December 31, 2015. If interest on non-accruing loans had been recognized at the original interest rates stipulated in the respective loan agreements, interest income would have increased $0.2 million for the period ended March 31, 2016 and 2015, respectively. Interest income recognized on impaired loans in the tables above represents interest the Company recognized on accruing TDRs. At March 31, 2016, 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 The majority of the Bank’s TDRs were granted concessions with respect to interest rates, payment structure and/or maturity. Modifications to loans as TDRs during the three month period ended March 31, 2016 were primarily comprised of extensions of a loan’s maturity at the loan’s original interest rate, which was lower than the market rate of interest for new credit with similar risk. Extensions of maturity were for periods ranging from 6 months to 10 years. At March 31, 2016, the Company was not committed to lend any additional funds to borrowers with loans modified as TDRs. As of March 31, 2016 the Company had established valuation allowances for loans modified as TDRs totaling $0.4 million. The following table provides a summary of loans classified as TDRs as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Accrual Non-accrual Total Accrual Non-accrual Total (dollars in thousands) Non-PCI loans Real estate secured Construction and land $ $ $ $ $ $ Commercial Farmland Residential 1 to 4 family - Commercial Commercial and industrial Agriculture - Consumer Total non-PCI loans PCI loans Real estate secured Commercial Construction and land - - Commercial Commercial and industrial Total PCI loans Total TDRs $ $ $ $ $ $ The following tables summarize loan modifications which resulted in TDRs during the periods presented below: For the Three Months Ended For the Three Months Ended March 31, 2016 March 31, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TDRs Investment Investment TDRs Investment Investment (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial - $ - $ - $ $ Residential 1 to 4 family - - - Commercial Commercial and industrial Agriculture Consumer - - - Total $ $ $ $ The following tables summarize 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 Three Months Ended March 31, 2016 March 31, 2015 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Real Estate Secured Farmland $ - $ - Commercial Commercial and industrial - - Total $ $ 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 March 31, 2016 Balance December 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance March 31, 2016 (dollars in thousands) Other real estate secured $ $ - $ $ $ Commercial Construction and land - Consumer Unallocated - - Total $ $ $ $ - $ For the Three Months Ended March 31, 2015 Balance December 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance March 31, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial - Construction and land Consumer - 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: March 31, 2016 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 Construction and land - Consumer - - - Unallocated - - - - - Total $ $ $ $ $ $ December 31, 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 Construction and land - Consumer - - - Unallocated - - - - - Total $ $ $ $ $ $ At March 31, 2016, total gross loans of $1.3 billion in the table above include $160.3 million of loans acquired in the MISN Transaction. Loans acquired in the MISN Transaction were initially recorded at fair value, and had no related ALLL on the acquisition date. At March 31, 2016 and December 31, 2015 the ALLL for acquired non-PCI loans, which were acquired in the MISN Transaction, was $0.2 million, respectively, and is included in the ALLL for loans collectively evaluated for impairment. The incremental ALLL allocation for acquired non-PCI loans was not due to deterioration in credit quality, but rather due to accelerated accretion of purchase discounts attributable to loan paydowns and payoffs. The ALLL for PCI loans was $0.1 million as of March 31, 2016 and December 31, 2015, and is attributable to unfavorable changes in expected future cash flows on certain PCI loans. Reserve for Off-Balance Sheet Loan Commitments The Company has exposure to losses from unfunded loan commitments and letters of credit. Estimated losses inherent in the outstanding balance of these commitments is not included in the ALLL, but is recorded separately, and included as a component of other liabilities in the consolidated balance sheets. The balance of the reserve for off-balance sheet commitments was $0.5 million at March 31, 2016 and December 31, 2015. Credit Quality The following tables stratify loans held for investment by the Company’s internal risk grading system as of March 31, 2016 and December 31, 2015: March 31, 2016 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 - - - Construction and land - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total non-PCI loans - PCI loans Real estate secured Commercial - Residential 1 to 4 family - - Construction and land - - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $ December 31, 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 - - - Construction and land - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - - Total non-PCI loans - PCI loans Real estate secured Commercial - - Residential 1 to 4 family - - Construction and land - - 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: March 31, 2016 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing (1) Total (dollars in thousands) Non-PCI loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - - Farmland - - - Multi-family residential - - - - Construction and land - - - Home equity lines of credit - - - Commercial Commercial and industrial - - Agriculture - - - Consumer - - - Total non-PCI loans - - PCI loans Real estate secured Commercial - - - Residential 1 to 4 family - - - - Construction and land - - - - Commercial Agriculture - - - - Commercial and industrial - - Total PCI loans - - Total loans held for investment $ $ $ - $ - $ $ (1) At March 31, 2016, $6.3 million of non-accruing loans were current, $85 thousand were 30-59 days past due, $118 thousand were 60-89 days past due, and $1.7 million were 90+ days past due. December 31, 2015 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing (1) Total (dollars in thousands) Non-PCI loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - Farmland - - - Multi-family residential - - - - Construction and land - - - Home equity lines of credit - - - Commercial Commercial and industrial - Agriculture - - - - Consumer - - - Total non-PCI loans - PCI loans Real estate secured Commercial - - - Residential 1 to 4 family - - - - Construction and land - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ $ - $ $ (1) At December 31, 2015, $6.4 million of non-accruing loans were current, $28 thousand were 30-59 days past due, $26 thousand were 60-89 days past due, and $1.4 million were 90+ days past due.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes	Note 5. 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 March 31, 2016 and December 31, 2015 there was no valuation allowance for the Company’s deferred tax assets. The Company’s deferred tax assets totaled $18.7 million at March 31, 2016, and $21.3 million at December 31, 2015. The Company is subject to income taxation by both federal and state taxing authorities. Income tax returns for the years ended December 31, 2015, 2014, 2013, 2012 are open to audit by federal taxing authorities while income tax returns are open to audit by state taxing authorities for the years ended December 31, 2015, 2014, 2013, 2012, and 2011. The Company does not have any uncertain income tax positions and has not accrued for any interest or penalties as of March 31, 2016 and December 31, 2015. 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 net operating losses (“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	3 Months Ended
	Mar. 31, 2016
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	Note 6. Goodwill and Other Intangible Assets Intangible assets consist of goodwill and core deposit intangible assets (“CDI”) associated with the acquisition of core deposit balances. At March 31, 2016 and December 31, 2015, the carrying value of goodwill was $24.9 million. At March 31, 2016 and December 31, 2015, the balance of CDI was $4.1 million and $4.3 million. CDI assets are subject to amortization. Amortization for the three months ended March 31, 2016 and 2015 was $0.2 million and $0.3 million, respectively. The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount of CDI and provides an estimate for future amortization as of March 31, 2016: March 31, 2016 Gross Carrying Accumulated Net Carrying Amount Amortization Amount (dollars in thousands) Core deposit intangibles $ $ $ March 31, 2016 Beginning Estimated Projected Ending Balance Amortization Balance (dollars in thousands) Period Year 2016 $ $ $ Year 2017 Year 2018 Year 2019 Year 2020 Year 2021

Share-based Compensation Plans

Share-based Compensation Plans	3 Months Ended
	Mar. 31, 2016
Share-based Compensation Plans
Share-based Compensation Plans	Note 7. Share-based Compensation Plans As of March 31, 2016, 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 than 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. These plans are referred to as the “2005 Equity Based Compensation Plan,” and the “1997 Stock Option Plan.” As of March 31, 2016, no further grants can be made from either of these plans. 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. Compensation cost related to awards that are subject to performance conditions is recognized over the vesting period if the Company believes it is more likely than not that the performance conditions will be achieved. If the Company believes it is more likely than not that performance conditions will not be achieved, the Company ceases the accrual of compensation cost for the related award, and previously recognized compensation cost for the unvested portion of the award is reversed from earnings. The following table provides a summary of activity related to restricted stock granted for the three months ended March 31, 2016: Number of Average Grant Shares Date Fair Value Balance December 31, 2015 $ Granted Vested Forfeited Balance March 31, 2016 $ Included in the table above are performance-based grants of restricted stock totaling 13,245 shares as of March 31, 2016. 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 provides information related to options that have vested or are expected to vest and exercisable options as of March 31, 2016: Options Outstanding Options Number Weighted Average Available for of Shares Exercise Price Grant Balance, December 31, 2015 $ Granted Forfeited Exercised Balance, March 31, 2016 $ March 31, 2016 Weighted Average Weighted Remaining Aggregate Average Contractual Life Intrinsic Shares Exercise Price (Years) Value Vested or expected to vest $ $ Exercisable at March 31, 2016 $ $ The total intrinsic value, the amount by which the stock price exceeded the exercise price on the date of exercise, of options exercised in all plans during the period ended March 31, 2016 was $138 thousand. The tax benefit related to the exercise of stock options and disqualifying dispositions on the exercise of incentive stock options was $2 thousand for the period ended March 31, 2016. The following table presents the assumptions used in the calculation of the weighted average fair value of options granted at various dates during the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Expected volatility Expected term (years) Dividend yield Risk free rate Weighted-average grant date fair value $ $ 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. Share-Based Compensation Expense The following table provides a summary of the expense the Company recognized related to share-based compensation awards, as well as the remaining expense associated with those awards as of and for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 (dollars in thousands) Share-based compensation expense: Stock options $ $ Restricted stock Total expense $ $ Unrecognized compensation expense: Stock options $ $ Restricted stock Total unrecognized expense $ $ Expense related to share-based compensation is charged to earnings over the period the awards are expected to vest, and is included in salaries and employee benefits in the consolidated financial statements. For the three months ended March 31, 2016 and 2015, the total income tax benefit recognized related to share-based compensation was $2 thousand, and $27 thousand, respectively. At March 31, 2016, compensation expense related to unvested stock options and restricted stock is expected to be recognized over 2.6 years and 1.8 years, respectively.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2016
Shareholders' Equity
Shareholders' Equity	Note 8. Shareholders’ Equity Cash Dividends On January 27, 2016, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on February 29, 2016, to shareholders of the Company’s common stock as of February 17, 2016. As discussed in Note 14. Subsequent Events , of these condensed consolidated financial statements, on April 27, 2016, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on May 31, 2016, to shareholders of the Company’s common stock as of May 18, 2016. Stock Repurchase Program On January 6, 2016, the Company amended its previously announced program 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. The amendment to the stock repurchase program include an extension of the program beyond its then expiration date of January 31, 2016. Under the amended program, repurchase activity commenced on February 1, 2016 and may continue until August 2, 2016, the program’s new expiration date, or expire earlier upon the completion of the repurchase of $5.0 million of the Company’s common stock, as well as under certain other circumstances as set forth in the amended program. 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. During the three months ended March 31, 2016, the Company repurchased and cancelled 226,170 shares of its common stock at an aggregate cost of $1.6 million or $7.23 per share. As of March 31, 2016, the Company had repurchased and cancelled a total of 281,598 shares of its common stock under this plan at an aggregate total cost of $2.0 million or $7.28 per share. Regulatory Capital Capital ratios for commercial banks in the United States are generally calculated using four different formulas. These calculations are referred to as the “Leverage Ratio,” and three “risk-based” calculations known as: “Common Equity Tier I Capital Ratio,” “Tier One Risk Based Capital Ratio” and “Total Risk Based Capital Ratio.” These metrics were developed through joint efforts of banking authorities from different countries around the world. The standards are based on the premise that different types of assets have different levels of risk associated with them and take into consideration the off-balance sheet exposures of banks when assessing capital adequacy. The Bank seeks to maintain strong levels of capital in order to generally be considered “well-capitalized” under the Prompt Corrective Action framework as determined by regulatory agencies. The Company’s potential sources of capital include retained earnings and the issuance of equity, while the Bank’s primary sources of capital include retained earnings and capital contributions from Bancorp. 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 through 2019. The significant changes outlined under the Basel III Capital Rules that are applicable to the Company and the Bank include: · A 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.” · The capital conservation buffer is determined 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 began phasing-in on January 1, 2016. · The exclusion from CET I of certain items on a phased-in basis, such as deferred tax assets and intangible assets. For 2016, certain deferred tax assets and intangible assets are phased-out of CET I at a rate of 60%, compared to 40% for 2015. 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 as of March 31, 2016 and December 31, 2015 : Regulatory Standard to Be Considered Adequately Capitalized (1) Well Capitalized (2) March 31, 2016 December 31, 2015 Bank Company Bank Company Bank Company Bank Ratio Common Equity Tier I Capital Ratio Leverage ratio Tier I Risk-Based Capital Ratio Total Risk-Based Capital Ratio (1) As of March 31, 2016, includes Capital Conservation Buffer of 0.625%. On a fully phased-in basis, effective January 1, 2019, under Basel III Capital Rules, minimum capital ratios will be as follows: CET I: 7.0%; Tier I Risk-Based Capital Ratio: 8.5%; Total Risk-Based Capital Ratio: 10.5%. (2) Reflects minimum threshold to be considered “well capitalized” under Prompt Corrective Action framework, specific to depository institutions. At March 31, 2016, the Company was able to include $10.1 million of junior subordinated debt in its Tier I capital for regulatory capital purposes compared to $10.0 million at December 31, 2015.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share
Earnings Per Share	Note 9. Earnings Per Share The following tables set forth the number of shares used in the calculation of both basic and diluted earnings per common share: For the Three Months Ended March 31, 2016 2015 Net Net Income Shares Income Shares (dollars in thousands, except per share data) Net income $ $ 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 months ended March 31, 2016 and 2015, common stock equivalents associated primarily with stock options, totaling approximately 35,000 shares and 136,000 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	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies.
Commitments and Contingencies	Note 10. Commitments and Contingencies In the normal course of business, various claims and lawsuits are brought by and against the Company. In the opinion of management and the Company’s legal counsel, the disposition of all pending or threatened proceedings will not have a material effect on the Company’s 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. 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 March 31, 2016 and December 31, 2015, the Company had the following outstanding financial commitments: March 31, December 31, 2016 2015 (dollars in thousands) Commitments to extend credit $ $ Standby letters of credit (1) Total commitments and standby letters of credit $ $ (1) Includes a standby letter of credit to one customer in the amount of $10.2 million and $10.4 million at March 31 2016 and December 31 2015 respectively. Commitments to extend credit and standby letters of credit are made at both fixed and variable rates of interest. At March 31, 2016, the Company had $24.4 million in fixed rate commitments and $230.4 million in variable rate commitments.

Regulatory Matters

Regulatory Matters	3 Months Ended
	Mar. 31, 2016
Regulatory Matters
Regulatory Matters	Note 11. 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.

Derivative Instruments

Derivative Instruments	3 Months Ended
	Mar. 31, 2016
Derivative Instrument [Abstract]
Derivative Instruments	Note 12. Derivative Instruments The Company has entered into interest rate swap agreements with certain borrowers to assist them in mitigating their interest rate risk exposure associated with the loans they have with the Company. At the same time, the Company has entered into identical interest rate swap agreements with another financial institution to mitigate the Company’s interest rate risk exposure associated with the swap agreements with its borrowers. At March 31, 2016, the Company had swaps with matched terms with an aggregate notional amount of $20.9 million and a fair value of $0.9 million. The fair values of these swaps are recorded as other assets and other liabilities in the Company’s condensed consolidated balance sheet. Changes in the fair value of these swaps, which occur due to changes in interest rates, are recorded in the Company’s income statement as a component of non-interest income. Since the terms of the swap agreements between the Company and its borrowers have been matched with the terms of swap agreements with another financial institution, the adjustments for the change in their fair value offset each other in non-interest income. Although changes in the fair value of swap agreements between the Company and borrowers and the Company and other financial institutions offset each other, changes in the credit risk of these counterparties may result in a difference in the fair value of these swap agreements. Offsetting swap agreements the Company has with other financial institutions are collateralized with cash, and swap agreements with borrowers are secured by the collateral arrangements for the underlying loans these borrowers have with the Company. During the three months ended March 31, 2016, there were no losses recorded on swap agreements, attributable to the change in credit risk associated with a counterparty. All interest rate swap agreements entered into by the Company as of March 31, 2016 are not designated as hedging instruments. The following table summarizes the Company’s derivative instruments, included in “other assets” and “other liabilities” in the condensed consolidated balance sheets, as of March 31, 2016: March 31, 2016 Derivative Assets Derivative Liabilities Notional Fair Value Notional Fair Value (dollars in thousands) Derivative instruments not designated as hedging instruments: Interest rate swap contracts - pay floating, receive fixed $ $ $ - $ - Interest rate swap contracts - pay fixed, receive floating - - Total $ $ $ $ The Company was not party to any swap agreements as of December 31, 2015.

Balance Sheet Offsetting

Balance Sheet Offsetting	3 Months Ended
	Mar. 31, 2016
Balance Sheet Offsetting [Abstract]
Balance Sheet Offsetting	Note 13. Balance Sheet Offsetting Derivative financial instruments may be eligible for offset in the consolidated balance sheets, such as those subject to enforceable master netting arrangements or a similar agreement. Under these agreements, the Company has the right to net settle multiple contracts with the same counterparty. The Company offers an interest rate swap product to qualified customers. These derivative financial instruments are paired with derivative contracts entered into with an unrelated counterparty bank. While derivative contracts entered into with counterparty banks may be subject to enforceable master netting agreements, derivative contracts with customers may not be subject to enforceable master netting arrangements. As such, these instruments have been excluded from the table below. Financial instruments that are eligible for offset in the consolidated balance sheets as of March 31, 2016 are presented in the table below: Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts Recognized in the Consolidated Balance Sheets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Net Amount (dollars in thousands) March 31, 2016 Financial liabilities: Derivatives not designated as hedging instruments $ $ - $ $ - $ $ Total $ $ - $ $ - $ $ As shown in the table above, as of March 31, 2016, the Company pledged cash collateral of $0.9 million for interest rate swaps in a liability position.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events
Subsequent Events	Note 14. Subsequent Events Dividend Declaration On April 27, 2016, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on May 31, 2016, to shareholders of the Company’s common stock as of May 18, 2016.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
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. 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 September, 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement Period Adjustments (Topic 805). This ASU eliminates the requirement to restate prior period financial statements for measurement period adjustments to assets acquired and liabilities assumed in a business combination. The new guidance under this update requires the cumulative impact of measurement period adjustments be recognized in the period the adjustment is determined. This update does not change what constitutes a measurement period adjustment, nor does it change the length of the measurement period. The new standard is effective for interim annual periods beginning after December 15, 2015 and should be applied prospectively to measurement period adjustments that occur after the effective date. This update did not have an impact on the Company’s condensed consolidated financial statements.
Recent Accounting Guidance Not Yet Effective	Recent Accounting Guidance Not Yet Effective In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). This update simplifies several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flow. The new guidance under the update requires all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit on the income statement. The amendments within the update are effective for fiscal years and all interim periods beginning after December 31, 2016, with early adoption permitted. 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 financial statements. In February 2016-02, the FASB issued ASU 2016-02, Leases (Topic 842). This update improves the understanding and comparability of lessees’ financial commitments by requiring lease assets and lease liabilities to be recognized on the balance sheet for those leases classified as operating leases under current U.S. GAAP. This ASU requires a lessee to recognize on the balance sheet a lease liability to make lease payments and a right of use asset, representing the right to use the underlying asset, during the term of the lease. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, using a modified retrospective approach, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption of this update will have on its financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825). The amendments in this update require that public entities measure equity investments with readily determinable fair values, at fair value, with changes in their fair value recorded through net income. This ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. The amendments within the update are effective for fiscal years and all interim periods beginning after December 15, 2017. 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 financial statements. 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 financial statements.

Fair Value of Assets and Liab24

Fair Value of Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value of Assets and Liabilities
Summary of the assets the Company measures at fair value on a recurring basis	As of Fair Value Measurements Using March 31, Quoted Prices in Significant Other Significant 2016 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Available for sale investments: 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 - - Other investments - - Derivative financial instruments: Interest rate swaps - Total assets measured on a recurring basis $ $ $ $ - Liabilities Derivative financial instruments: Interest rate swaps $ $ - $ $ - Total liabilities measured on a recurring basis $ $ - $ $ - As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 2015 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Available for sale investments: 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 - - Other investments - - Derivative financial instruments: Interest rate swaps - - - - Total assets measured on a recurring basis $ $ $ $ - Liabilities Derivative financial instruments: Interest rate swaps $ - $ - $ - $ - Total liabilities measured on a recurring basis $ - $ - $ - $ -
Summary of assets the Company measures at fair value on a non-recurring basis	As of Fair Value Measurements Using March 31, Quoted Prices in Significant Other Significant 2016 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 Other real estate owned $ $ - $ $ - $ Total assets measured on a non-recurring basis $ $ - $ $ - $ As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 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 Other real estate owned $ - $ - $ - $ - $ - Total assets measured on a non-recurring basis $ - $ - $ - $ - $ -
Summary of the estimated fair value of financial instruments	Fair Value Measurements Using As of Quoted Prices in Significant Other Significant March 31, 2016 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 - - Loans held for sale - - Interest rate swaps - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Interest rate swaps - - Accrued interest payable - - Fair Value Measurements Using As of Quoted Prices in Significant Other Significant December 31, 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 - - Loans held for sale - - Interest rate swaps - - - - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Interest rate swaps - - - - - Accrued interest payable - -
Summary of off-balance sheet instruments	March 31, 2016 December 31, 2015 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)	3 Months Ended
	Mar. 31, 2016
Investment Securities
Schedule of amortized cost and fair values of the Company's investment securities, all of which are reported as available for sale	March 31, 2016 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair 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 - Other investments - Total available for sale securities $ $ $ $ December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair 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 - Other investments - Total available for sale securities $ $ $ $
Summary of investment securities in an unrealized loss position	March 31, 2016 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 - - Other investments - - Total $ $ $ $ $ $ December 31, 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 - - Other investments - - Total $ $ $ $ $ $
Schedule of proceeds from the sales and calls of securities and the associated gains and losses	Three Months Ended March 31, 2016 2015 (dollars in thousands) Proceeds $ $ Gross gains Gross losses
Schedule of amortized cost and fair values maturities of available for sale investment securities	March 31, 2016 December 31, 2015 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 March 31, 2016 2015 (dollars in thousands) Taxable earnings on investment securities Obligations of U.S. government agencies $ $ Mortgage backed securities State and municipal securities Asset backed securities Earnings on investment securities exempt from federal taxation State and municipal securities Total $ $

Loans and Allowance for Loan 26

Loans and Allowance for Loan and Lease Losses (Tables)	3 Months Ended
	Mar. 31, 2016
Loans and Allowance for Loan and Lease Losses
Summary of outstanding loan balances	March 31, 2016 December 31, 2015 Non-PCI PCI Total Loans Non-PCI PCI Total Loans Loans Loans Receivable Loans Loans Receivable (dollars in thousands) Real Estate Secured Commercial $ $ $ $ $ $ Residential 1 to 4 family Farmland - - Multi-family residential - - Construction and land Home equity lines of credit - - Total real estate secured Commercial Commercial and industrial Agriculture Total commercial Consumer - - Total loans held for investment Deferred loan fees - - Allowance for loan and lease losses Total net loans held for investment $ $ $ $ $ $ Loans held for sale $ $ - $ $ $ - $
Schedule of carrying amount and unpaid principal balance of PCI loans	March 31, 2016 December 31, 2015 Unpaid Principal Balance Carrying Amount Unpaid Principal Balance Carrying Amount (dollars in thousands) Real Estate Secured Commercial $ $ $ $ Residential 1 to 4 family Construction and land Total real estate secured Commercial Agriculture Commercial and industrial Total commercial Total PCI loans $ $ $ $
Schedule of accretable yield, or income expected to be collected on PCI loans	For the Three Months Ended, March 31, 2016 2015 (dollars in thousands) Beginning balance $ $ Accretion of income Reclassifications from nonaccretable difference (1) Ending balance $ $ (1) Reclassification from nonaccretable difference is attributed to positive changes in expected future cash flows on PCI loans.
Summary of the recorded investment in non-PCI and PCI impaired loans	March 31, 2016 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured Construction and land $ $ $ - $ $ Commercial - Farmland - Residential 1 to 4 family - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total - With Related Allowance Real Estate Secured Commercial Commercial Commercial and industrial Agriculture Total Total Non-PCI impaired loans $ $ $ $ $ March 31, 2016 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ Residential 1 to 4 family - Construction and land - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Construction and land Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ For the Three Months Ended December 31, 2015 March 31, 2015 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured Construction and land $ $ $ - $ $ Commercial - Residential 1 to 4 family - - Farmland - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total - With Related Allowance Real Estate Secured Commercial - Land - - - Commercial Commercial and industrial Agriculture - - Total Total Non-PCI impaired loans $ $ $ $ $ For the Three Months Ended December 31, 2015 March 31, 2015 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ Residential 1 to 4 family - Construction and land - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Construction and land Residential 1 to 4 family - - - Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $
Summary of loans classified as TDRs	March 31, 2016 December 31, 2015 Accrual Non-accrual Total Accrual Non-accrual Total (dollars in thousands) Non-PCI loans Real estate secured Construction and land $ $ $ $ $ $ Commercial Farmland Residential 1 to 4 family - Commercial Commercial and industrial Agriculture - Consumer Total non-PCI loans PCI loans Real estate secured Commercial Construction and 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 Three Months Ended March 31, 2016 March 31, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TDRs Investment Investment TDRs Investment Investment (dollars in thousands) Non-PCI Loans Real Estate Secured Commercial - $ - $ - $ $ Residential 1 to 4 family - - - Commercial Commercial and industrial Agriculture Consumer - - - 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 Three Months Ended March 31, 2016 March 31, 2015 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Real Estate Secured Farmland $ - $ - Commercial Commercial and industrial - - Total $ $
Summary of the activity in the allowance for loan and lease losses by portfolio segment	For the Three Months Ended March 31, 2016 Balance December 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance March 31, 2016 (dollars in thousands) Other real estate secured $ $ - $ $ $ Commercial Construction and land - Consumer Unallocated - - Total $ $ $ $ - $ For the Three Months Ended March 31, 2015 Balance December 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance March 31, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial - Construction and land Consumer - Unallocated - - Total $ $ $ $ - $
Schedule of allowance for loan and lease losses and the recorded investment in loans by impairment methodology	March 31, 2016 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 Construction and land - Consumer - - - Unallocated - - - - - Total $ $ $ $ $ $ December 31, 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 Construction and land - Consumer - - - Unallocated - - - - - Total $ $ $ $ $ $
Schedule of loan portfolio by the Company's internal risk grading system	March 31, 2016 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 - - - Construction and land - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total non-PCI loans - PCI loans Real estate secured Commercial - Residential 1 to 4 family - - Construction and land - - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $ December 31, 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 - - - Construction and land - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - - Total non-PCI loans - PCI loans Real estate secured Commercial - - Residential 1 to 4 family - - Construction and land - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $
Summary of the aging of loans held for investment	March 31, 2016 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing (1) Total (dollars in thousands) Non-PCI loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - - Farmland - - - Multi-family residential - - - - Construction and land - - - Home equity lines of credit - - - Commercial Commercial and industrial - - Agriculture - - - Consumer - - - Total non-PCI loans - - PCI loans Real estate secured Commercial - - - Residential 1 to 4 family - - - - Construction and land - - - - Commercial Agriculture - - - - Commercial and industrial - - Total PCI loans - - Total loans held for investment $ $ $ - $ - $ $ (1) At March 31, 2016, $6.3 million of non-accruing loans were current, $85 thousand were 30-59 days past due, $118 thousand were 60-89 days past due, and $1.7 million were 90+ days past due. December 31, 2015 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing (1) Total (dollars in thousands) Non-PCI loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - Farmland - - - Multi-family residential - - - - Construction and land - - - Home equity lines of credit - - - Commercial Commercial and industrial - Agriculture - - - - Consumer - - - Total non-PCI loans - PCI loans Real estate secured Commercial - - - Residential 1 to 4 family - - - - Construction and land - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ $ - $ $ (1) At December 31, 2015, $6.4 million of non-accruing loans were current, $28 thousand were 30-59 days past due, $26 thousand were 60-89 days past due, and $1.4 million were 90+ days past due.

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Other Intangible Assets
Summary of the gross carrying amount, accumulated amortization and net carrying amount of CDI	March 31, 2016 Gross Carrying Accumulated Net Carrying Amount Amortization Amount (dollars in thousands) Core deposit intangibles $ $ $
Summary of an estimate for future amortization expense	March 31, 2016 Beginning Estimated Projected Ending Balance Amortization Balance (dollars in thousands) Period Year 2016 $ $ $ Year 2017 Year 2018 Year 2019 Year 2020 Year 2021

Share-based Compensation Plans

Share-based Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2016
Share-based Compensation Plans
Summary of activity related to restricted stock granted, vested and forfeited	Number of Average Grant Shares Date Fair Value Balance December 31, 2015 $ Granted Vested Forfeited Balance March 31, 2016 $
Summary of activity related to options granted, exercised, and forfeited	Options Outstanding Options Number Weighted Average Available for of Shares Exercise Price Grant Balance, December 31, 2015 $ Granted Forfeited Exercised Balance, March 31, 2016 $
Summary of the aggregate intrinsic value of options vested and expected to vest and exercisable	March 31, 2016 Weighted Average Weighted Remaining Aggregate Average Contractual Life Intrinsic Shares Exercise Price (Years) Value Vested or expected to vest $ $ Exercisable at March 31, 2016 $ $
Schedule of assumptions used in the calculation of weighted average fair value of options granted	For the Three Months Ended March 31, 2016 2015 Expected volatility Expected term (years) Dividend yield Risk free rate Weighted-average grant date fair value $ $
Summary of recognized and unrecognized share based compensation expense	For the Three Months Ended March 31, 2016 2015 (dollars in thousands) Share-based compensation expense: Stock options $ $ Restricted stock Total expense $ $ Unrecognized compensation expense: Stock options $ $ Restricted stock Total unrecognized expense $ $

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Shareholders' Equity
Schedule of the Company's and the Bank's actual regulatory capital ratios	Regulatory Standard to Be Considered Adequately Capitalized (1) Well Capitalized (2) March 31, 2016 December 31, 2015 Bank Company Bank Company Bank Company Bank Ratio Common Equity Tier I Capital Ratio Leverage ratio Tier I Risk-Based Capital Ratio Total Risk-Based Capital Ratio (1) As of March 31, 2016, includes Capital Conservation Buffer of 0.625%. On a fully phased-in basis, effective January 1, 2019, under Basel III Capital Rules, minimum capital ratios will be as follows: CET I: 7.0%; Tier I Risk-Based Capital Ratio: 8.5%; Total Risk-Based Capital Ratio: 10.5%. (2) Reflects minimum threshold to be considered “well capitalized” under Prompt Corrective Action framework, specific to depository institutions.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share
Schedule of calculation of basic and diluted earnings per common share	For the Three Months Ended March 31, 2016 2015 Net Net Income Shares Income Shares (dollars in thousands, except per share data) Net income $ $ 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)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies.
Schedule of outstanding financial commitments	March 31, December 31, 2016 2015 (dollars in thousands) Commitments to extend credit $ $ Standby letters of credit (1) Total commitments and standby letters of credit $ $ (1) Includes a standby letter of credit to one customer in the amount of $10.2 million and $10.4 million at March 31 2016 and December 31 2015 respectively.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Instrument [Abstract]
Schedule of derivative instruments	March 31, 2016 Derivative Assets Derivative Liabilities Notional Fair Value Notional Fair Value (dollars in thousands) Derivative instruments not designated as hedging instruments: Interest rate swap contracts - pay floating, receive fixed $ $ $ - $ - Interest rate swap contracts - pay fixed, receive floating - - Total $ $ $ $

Balance Sheet Offsetting (Table

Balance Sheet Offsetting (Tables)	3 Months Ended
	Mar. 31, 2016
Balance Sheet Offsetting [Abstract]
Schedule of financial instruments eligible for offsetting	Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts Recognized in the Consolidated Balance Sheets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Net Amount (dollars in thousands) March 31, 2016 Financial liabilities: Derivatives not designated as hedging instruments $ $ - $ $ - $ $ Total $ $ - $ $ - $ $

Summary of Significant Accoun34

Summary of Significant Accounting Policies - Nature of Operations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)
Financial instruments the Company measures at fair value on a recurring basis
Total assets	$ 1,913,120	$ 1,899,739
Nature of Operations
Number of business segments | segment	1
All Non-United States countries
Financial instruments the Company measures at fair value on a recurring basis
Total assets	$ 0
Revenue	$ 0

Fair Value of Assets and Liab35

Fair Value of Assets and Liabilities - Recurring (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	$ 441,705	$ 450,935
Derivative Liability	877
Obligations of U.S. government agencies
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	45,353	47,318
Mortgage-backed securities - U.S. government sponsored entities and agencies
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	250,994	245,235
Mortgage-backed securities - Non-agency
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	33,256	34,317
State and municipal securities
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	101,783	108,406
Asset backed securities
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	10,263	15,627
Other investments
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	56	32
Assets At Fair Value
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	441,705	450,935
Assets At Fair Value | Interest rate swaps
Financial instruments the Company measures at fair value on a recurring basis
Derivative assets	877
Derivative Liability	877
Assets At Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	56	32
Assets At Fair Value | Significant Other Observable Inputs (Level 2)
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	441,649	450,903
Assets At Fair Value | Significant Other Observable Inputs (Level 2) | Interest rate swaps
Financial instruments the Company measures at fair value on a recurring basis
Derivative assets	877
Derivative Liability	877
Recurring basis
Transfers between level 1 and level 2
Assets transfer from Level 1 to level 2	0	0
Assets transfer from Level 2 to level 1	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial instruments the Company measures at fair value on a recurring basis
Total assets measured on a recurring basis	56	32
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	56	32
Recurring basis | Significant Other Observable Inputs (Level 2)
Financial instruments the Company measures at fair value on a recurring basis
Total assets measured on a recurring basis	442,526	450,903
Total liabilities measured on a recurring bases	877
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. government agencies
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	45,353	47,318
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - U.S. government sponsored entities and agencies
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	250,994	245,235
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Non-agency
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	33,256	34,317
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal securities
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	101,783	108,406
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset backed securities
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	10,263	15,627
Recurring basis | Significant Other Observable Inputs (Level 2) | Interest rate swaps
Financial instruments the Company measures at fair value on a recurring basis
Derivative assets	877
Derivative Liability	877
Recurring basis | Assets At Fair Value
Financial instruments the Company measures at fair value on a recurring basis
Total assets measured on a recurring basis	442,582	450,935
Total liabilities measured on a recurring bases	877
Recurring basis | Assets At Fair Value | Obligations of U.S. government agencies
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	45,353	47,318
Recurring basis | Assets At Fair Value | Mortgage-backed securities - U.S. government sponsored entities and agencies
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	250,994	245,235
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Non-agency
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	33,256	34,317
Recurring basis | Assets At Fair Value | State and municipal securities
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	101,783	108,406
Recurring basis | Assets At Fair Value | Asset backed securities
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	10,263	15,627
Recurring basis | Assets At Fair Value | Other investments
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	56	32
Recurring basis | Assets At Fair Value | Interest rate swaps
Financial instruments the Company measures at fair value on a recurring basis
Derivative assets	877
Derivative Liability	877
Non-recurring basis
Transfers between level 1 and level 2
Assets transfer from Level 1 to level 2	0	0
Assets transfer from Level 2 to level 1	$ 0	$ 0

Fair Value of Assets and Liab36

Fair Value of Assets and Liabilities - Non-recurring (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Commercial real estate
Total Losses for assets measured at fair value on a non-recurring basis
Year to Date Losses/(Recoveries) on impaired loans	$ 217
Recurring basis
Transfers between level 1 and level 2
Assets transfer from Level 1 to level 2	0	$ 0
Assets transfer from Level 2 to level 1	0	0
Non-recurring basis
Total Losses for assets measured at fair value on a non-recurring basis
Year to Date Losses/(Recoveries)	217
Transfers between level 1 and level 2
Assets transfer from Level 1 to level 2	0	0
Assets transfer from Level 2 to level 1	0	$ 0
Non-recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Total assets measured on a non-recurring basis	111
Non-recurring basis | Significant Other Observable Inputs (Level 2) | Commercial real estate
Assets
Impaired loans	111
Non-recurring basis | Assets At Fair Value
Assets
Total assets measured on a non-recurring basis	111
Non-recurring basis | Assets At Fair Value | Commercial real estate
Assets
Impaired loans	$ 111

Fair Value of Assets and Liab37

Fair Value of Assets and Liabilities - Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Investment securities available for sale, at fair value	$ 441,705	$ 450,935
Liabilities
Non-interest bearing deposits	524,025	514,559
Junior subordinated debentures	10,485	10,438
Derivative Liability	877
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Notional Amount	254,780	255,093
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Cost to Cede or Assume	2,548	2,551
Carrying Amount
Assets
Cash and cash equivalents	53,575	69,923
Investment securities available for sale, at fair value	441,705	450,935
Federal Home Loan Bank stock	7,853	7,853
Loans receivable, net	1,272,621	1,228,696
Loans held for sale	6,560	9,755
Accrued interest receivable	6,002	6,256
Liabilities
Non-interest bearing deposits	524,025	514,559
Interest bearing deposits	1,058,564	1,050,402
Federal Home Loan Bank advances	103,012	103,521
Junior subordinated debentures	10,485	10,438
Accrued interest payable	401	390
Assets At Fair Value
Assets
Cash and cash equivalents	53,575	69,923
Investment securities available for sale, at fair value	441,705	450,935
Loans receivable, net	1,283,978	1,250,903
Loans held for sale	6,560	9,755
Accrued interest receivable	6,002	6,256
Liabilities
Non-interest bearing deposits	524,025	514,559
Interest bearing deposits	1,058,428	1,051,731
Federal Home Loan Bank advances	104,734	104,718
Junior subordinated debentures	7,838	8,195
Accrued interest payable	401	390
Assets At Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	53,575	69,923
Investment securities available for sale, at fair value	56	32
Liabilities
Non-interest bearing deposits	524,025	514,559
Assets At Fair Value | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	441,649	450,903
Loans held for sale	6,560	9,755
Accrued interest receivable	2,181	2,589
Liabilities
Interest bearing deposits	1,058,428	1,051,731
Federal Home Loan Bank advances	104,734	104,718
Accrued interest payable	401	390
Assets At Fair Value | Significant Unobservable Inputs (Level 3)
Assets
Loans receivable, net	1,283,978	1,250,903
Accrued interest receivable	3,821	3,667
Liabilities
Junior subordinated debentures	7,838	8,195
Obligations of U.S. government agencies
Assets
Investment securities available for sale, at fair value	45,353	47,318
Obligations of U.S. government agencies | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	45,353	47,318
Obligations of U.S. government agencies | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	45,353	47,318
Mortgage-backed securities - U.S. government sponsored entities and agencies
Assets
Investment securities available for sale, at fair value	250,994	245,235
Mortgage-backed securities - U.S. government sponsored entities and agencies | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	250,994	245,235
Mortgage-backed securities - U.S. government sponsored entities and agencies | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	250,994	245,235
Mortgage-backed securities - Non-agency
Assets
Investment securities available for sale, at fair value	33,256	34,317
Mortgage-backed securities - Non-agency | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	33,256	34,317
Mortgage-backed securities - Non-agency | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	33,256	34,317
State and municipal securities
Assets
Investment securities available for sale, at fair value	101,783	108,406
State and municipal securities | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	101,783	108,406
State and municipal securities | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	101,783	108,406
Asset backed securities
Assets
Investment securities available for sale, at fair value	10,263	15,627
Asset backed securities | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	10,263	15,627
Asset backed securities | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	10,263	15,627
Other investments
Assets
Investment securities available for sale, at fair value	56	32
Other investments | Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Investment securities available for sale, at fair value	56	32
Other investments | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	56	$ 32
Interest rate swaps | Carrying Amount
Assets
Derivative Asset	877
Liabilities
Derivative Liability	877
Interest rate swaps | Assets At Fair Value
Assets
Derivative Asset	877
Liabilities
Derivative Liability	877
Interest rate swaps | Assets At Fair Value | Significant Other Observable Inputs (Level 2)
Assets
Derivative Asset	877
Liabilities
Derivative Liability	877
Interest rate swaps | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Derivative Asset	877
Liabilities
Derivative Liability	877
Interest rate swaps | Recurring basis | Assets At Fair Value
Assets
Derivative Asset	877
Liabilities
Derivative Liability	$ 877

Investment Securities - Fair Va

Investment Securities - Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	$ 438,577	$ 450,131
Gross Unrealized Gains	5,483	4,741
Gross Unrealized Losses	(2,355)	(3,937)
Fair Value	441,705	450,935
Obligations of U.S. government agencies
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	45,486	47,478
Gross Unrealized Gains	247	269
Gross Unrealized Losses	(380)	(429)
Fair Value	45,353	47,318
Mortgage-backed securities - U.S. government sponsored entities and agencies
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	250,950	246,561
Gross Unrealized Gains	1,254	986
Gross Unrealized Losses	(1,210)	(2,312)
Fair Value	250,994	245,235
Mortgage-backed securities - Non-agency
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	33,377	34,645
Gross Unrealized Gains	80
Gross Unrealized Losses	(201)	(328)
Fair Value	33,256	34,317
State and municipal securities
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	97,977	105,164
Gross Unrealized Gains	3,902	3,486
Gross Unrealized Losses	(96)	(244)
Fair Value	101,783	108,406
Asset backed securities
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	10,687	16,183
Gross Unrealized Losses	(424)	(556)
Fair Value	10,263	15,627
Other investments
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	100	100
Gross Unrealized Losses	(44)	(68)
Fair Value	$ 56	$ 32

Investment Securities - Unreali

Investment Securities - Unrealized Losses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)security	Dec. 31, 2015USD ($)security
Investment securities
Less Than Twelve Months, Fair Value	$ 122,810	$ 213,195
Less Than Twelve Months, Unrealized Loss	(1,147)	(2,542)
Twelve Months or More, Fair Value	50,855	50,336
Twelve Months or More, Unrealized Loss	(1,208)	(1,395)
Total, Fair Value	173,665	263,531
Total, Unrealized Loss	$ (2,355)	$ (3,937)
Securities in an unrealized loss position
Securities in an unrealized loss position | security	70	104
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	$ 16,425	$ 34,533
Less Than Twelve Months, Unrealized Loss	(129)	(429)
Twelve Months or More, Fair Value	16,671
Twelve Months or More, Unrealized Loss	(251)
Total, Fair Value	33,096	34,533
Total, Unrealized Loss	(380)	(429)
Mortgage-backed securities - U.S. government sponsored entities and agencies
Investment securities
Less Than Twelve Months, Fair Value	90,460	131,570
Less Than Twelve Months, Unrealized Loss	(770)	(1,485)
Twelve Months or More, Fair Value	17,901	31,558
Twelve Months or More, Unrealized Loss	(440)	(827)
Total, Fair Value	108,361	163,128
Total, Unrealized Loss	(1,210)	(2,312)
Mortgage-backed securities - Non-agency
Investment securities
Less Than Twelve Months, Fair Value	8,662	31,400
Less Than Twelve Months, Unrealized Loss	(108)	(317)
Twelve Months or More, Fair Value	6,020	2,917
Twelve Months or More, Unrealized Loss	(93)	(11)
Total, Fair Value	14,682	34,317
Total, Unrealized Loss	(201)	(328)
State and municipal securities
Investment securities
Less Than Twelve Months, Fair Value	7,207	15,660
Less Than Twelve Months, Unrealized Loss	(96)	(243)
Twelve Months or More, Fair Value		235
Twelve Months or More, Unrealized Loss		(1)
Total, Fair Value	7,207	15,895
Total, Unrealized Loss	(96)	(244)
Asset backed securities
Investment securities
Twelve Months or More, Fair Value	10,263	15,626
Twelve Months or More, Unrealized Loss	(424)	(556)
Total, Fair Value	10,263	15,626
Total, Unrealized Loss	(424)	(556)
Other investments
Investment securities
Less Than Twelve Months, Fair Value	56	32
Less Than Twelve Months, Unrealized Loss	(44)	(68)
Total, Fair Value	56	32
Total, Unrealized Loss	$ (44)	$ (68)

Investment Securities - Proceed

Investment Securities - Proceeds (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Proceeds from the sales and calls of securities and the associated gains and losses
Proceeds	$ 57,279	$ 47,033
Gross gains	871	679
Gross losses	(320)	(174)
Income tax expense (benefit) related to net realized gains (losses) on sale of securities	$ 200	$ 200

Investment Securities - MBS Mat

Investment Securities - MBS Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Available for sale securities, Amortized cost
Due one year or less	$ 42,074	$ 51,049
Due after one year through five years	135,547	153,444
Due after five years through ten years	170,078	182,996
Due after ten years	90,878	62,642
Total	438,577	450,131
Available for sale securities, Fair Value
Due one year or less	42,099	50,978
Due after one year through five years	135,609	152,916
Due after five years through ten years	173,405	184,870
Due after ten years	90,592	62,171
Total	441,705	450,935
Securities pledged to secure public deposits
Available for sale securities, Amortized cost
Total	160,900	153,900
Available for sale securities, Fair Value
Total	$ 163,900	$ 155,200

Investment Securities - Investm

Investment Securities - Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings on both taxable and tax-exempt investment securities
Total	$ 2,200	$ 1,667
Obligations of U.S. government agencies
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	138	135
Mortgage backed securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	1,254	854
State and municipal securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	187	62
Earnings on investment securities exempt from federal taxation	579	569
Asset backed securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	$ 42	$ 47

Loans and Allowance for Loan 43

Loans and Allowance for Loan and Lease Losses - Loan Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Outstanding loan balances
Total gross loans held for investment	$ 1,291,346		$ 1,247,280
Deferred loan fees	(1,160)		(1,132)
Allowance for loan and lease losses	(17,565)	$ (16,913)	(17,452)	$ (16,802)
Net loans held for investment	1,272,621		1,228,696
Loans held for sale	6,560		9,755
Concentration of Credit Risk
Loan portfolio collateralized by various forms of real estate	1,100		1,000
Pledged Loans
Loans pledged as collateral to FHLB	656,900
FHLB secured credit facility	453,100
FHLB secured line of credit	10,200
Loans pledged as collateral	5,000
Loans Serviced for Others
Unpaid principal balance of loans serviced for others, exclusive of SBA loans	32,400		38,000
Unpaid principal balance of SBA loans serviced for others	7,900		8,500
Accretable yield, or income expected to be collected
Balance at the beginning of the period	3,821	4,374
Accretion of income	(216)	(678)
Reclassifications from nonaccretable difference	113	547
Balance at the end of the period	3,718	4,243
Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	1,282,705		1,238,505
Deferred loan fees	(1,160)		(1,132)
Allowance for loan and lease losses	(17,486)		(17,373)
Net loans held for investment	1,264,059		1,220,000
Loans held for sale	6,560		9,755
PCI loans
Outstanding loan balances
Total gross loans held for investment	8,641		8,775
Allowance for loan and lease losses	(79)		(79)
Net loans held for investment	8,562		8,696
Unpaid Principal Balance	10,825		11,107
Carrying Amount	8,641		8,775
MISN
Outstanding loan balances
Total gross loans held for investment	160,300
MISN | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	151,700		163,800
Land
Outstanding loan balances
Allowance for loan and lease losses		(2,044)		(2,000)
Real Estate Secured
Outstanding loan balances
Total gross loans held for investment	1,050,593		1,012,076
Real Estate Secured | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	1,044,089		1,005,536
Real Estate Secured | PCI loans
Outstanding loan balances
Total gross loans held for investment	6,504		6,540
Unpaid Principal Balance	8,307		8,396
Carrying Amount	6,504		6,540
Real Estate Secured | Commercial real estate
Outstanding loan balances
Total gross loans held for investment	605,242		579,244
Real Estate Secured | Commercial real estate | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	599,581		573,559
Real Estate Secured | Commercial real estate | PCI loans
Outstanding loan balances
Total gross loans held for investment	5,661		5,685
Unpaid Principal Balance	7,075		7,139
Carrying Amount	5,661		5,685
Real Estate Secured | Residential 1 to 4 family
Outstanding loan balances
Total gross loans held for investment	171,035		165,829
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	170,459		165,256
Real Estate Secured | Residential 1 to 4 family | PCI loans
Outstanding loan balances
Total gross loans held for investment	576		573
Unpaid Principal Balance	872		875
Carrying Amount	576		573
Real Estate Secured | Farmland
Outstanding loan balances
Total gross loans held for investment	129,787		120,566
Real Estate Secured | Farmland | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	129,787		120,566
Real Estate Secured | Multi-family residential
Outstanding loan balances
Total gross loans held for investment	81,807		79,381
Real Estate Secured | Multi-family residential | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	81,807		79,381
Real Estate Secured | Construction and land
Outstanding loan balances
Total gross loans held for investment	32,984		35,669
Real Estate Secured | Construction and land | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	32,717		35,387
Real Estate Secured | Construction and land | PCI loans
Outstanding loan balances
Total gross loans held for investment	267		282
Unpaid Principal Balance	360		382
Carrying Amount	267		282
Real Estate Secured | Home equity lines of credit
Outstanding loan balances
Total gross loans held for investment	29,738		31,387
Real Estate Secured | Home equity lines of credit | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	29,738		31,387
Commercial
Outstanding loan balances
Total gross loans held for investment	235,312		229,171
Allowance for loan and lease losses	(5,592)	$ (4,495)	(5,372)	$ (5,125)
Commercial | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	233,175		226,936
Commercial | PCI loans
Outstanding loan balances
Total gross loans held for investment	2,137		2,235
Unpaid Principal Balance	2,518		2,711
Carrying Amount	2,137		2,235
Commercial | Commercial and industrial
Outstanding loan balances
Total gross loans held for investment	169,366		164,808
Commercial | Commercial and industrial | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	168,683		164,025
Commercial | Commercial and industrial | PCI loans
Outstanding loan balances
Total gross loans held for investment	683		783
Unpaid Principal Balance	1,018		1,211
Carrying Amount	683		783
Commercial | Agriculture
Outstanding loan balances
Total gross loans held for investment	65,946		64,363
Commercial | Agriculture | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	64,492		62,911
Commercial | Agriculture | PCI loans
Outstanding loan balances
Total gross loans held for investment	1,454		1,452
Unpaid Principal Balance	1,500		1,500
Carrying Amount	1,454		1,452
Consumer
Outstanding loan balances
Total gross loans held for investment	5,441		6,033
Allowance for loan and lease losses	(159)		(173)
Consumer | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	$ 5,441		$ 6,033

Loans and Allowance for Loan 44

Loans and Allowance for Loan and Lease Losses - Impaired Loans (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)loan	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Investment in impaired loans
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans	$ 200	$ 200
Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	14,257		$ 13,524
Recorded investment with related allowance	3,130		2,779
Unpaid principal balance without related allowance	20,756		20,006
Unpaid principal balance with related allowance	3,413		3,037
Specific Allowance for Impaired Loans	367		254
Average recorded investment without related allowance	13,954	10,724
Average recorded investment with related allowance	2,891	6,916
Interest income recognized without related allowance	125	83
Interest income recognized with related allowance	36	28
Recorded Investment	17,387		16,303
Unpaid Principal Balance	24,169		23,043
Average Recorded Investment	16,845	17,640
Interest Income Recognized	161	111
PCI loans
Investment in impaired loans
Recorded investment without related allowance	7,467		7,531
Recorded investment with related allowance	1,174		1,244
Unpaid principal balance without related allowance	9,644		9,840
Unpaid principal balance with related allowance	1,181		1,267
Specific Allowance for Impaired Loans	79		79
Average recorded investment without related allowance	7,511	8,010
Average recorded investment with related allowance	1,197	2,107
Interest income recognized without related allowance	195	637
Interest income recognized with related allowance	21	41
Recorded Investment	8,641		8,775
Unpaid Principal Balance	10,825		11,107
Average Recorded Investment	8,708	10,117
Interest Income Recognized	$ 216	678
Residential 1 to 4 family
Foreclosures
Number of foreclosures | loan	0
Foreclosed assets	$ 0
Real Estate Secured | Commercial real estate | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	5,297		3,855
Recorded investment with related allowance	423		435
Unpaid principal balance without related allowance	9,823		5,328
Unpaid principal balance with related allowance	661		665
Specific Allowance for Impaired Loans	65		59
Average recorded investment without related allowance	5,218	4,069
Average recorded investment with related allowance	429	491
Interest income recognized without related allowance	23	36
Interest income recognized with related allowance	4
Real Estate Secured | Commercial real estate | PCI loans
Investment in impaired loans
Recorded investment without related allowance	5,137		5,156
Recorded investment with related allowance	524		229
Unpaid principal balance without related allowance	6,545		6,601
Unpaid principal balance with related allowance	530		230
Specific Allowance for Impaired Loans	41		5
Average recorded investment without related allowance	5,146	4,916
Average recorded investment with related allowance	527	290
Interest income recognized without related allowance	122	547
Interest income recognized with related allowance	10	5
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	944		694
Unpaid principal balance without related allowance	948		860
Average recorded investment without related allowance	765	457
Interest income recognized without related allowance	12
Real Estate Secured | Residential 1 to 4 family | PCI loans
Investment in impaired loans
Recorded investment without related allowance	576		573
Recorded investment with related allowance			529
Unpaid principal balance without related allowance	872		875
Unpaid principal balance with related allowance			538
Specific Allowance for Impaired Loans			41
Average recorded investment without related allowance	574	451
Average recorded investment with related allowance		1,025
Interest income recognized without related allowance	18	12
Interest income recognized with related allowance		22
Real Estate Secured | Construction and land | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	3,794		5,138
Unpaid principal balance without related allowance	5,275		9,615
Average recorded investment without related allowance	3,825	1,407
Interest income recognized without related allowance	31	20
Real Estate Secured | Construction and land | PCI loans
Investment in impaired loans
Recorded investment without related allowance	56		53
Recorded investment with related allowance	211
Unpaid principal balance without related allowance	148		152
Unpaid principal balance with related allowance	212
Specific Allowance for Impaired Loans	6
Average recorded investment without related allowance	55	558
Average recorded investment with related allowance	220	114
Interest income recognized without related allowance	9	18
Interest income recognized with related allowance	4	3
Real Estate Secured | Farmland | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	281		587
Unpaid principal balance without related allowance	435		588
Average recorded investment without related allowance	488	281
Interest income recognized without related allowance	5	3
Real Estate Secured | Land | Non-PCI Loans
Investment in impaired loans
Average recorded investment with related allowance		4,844
Interest income recognized with related allowance		3
Real Estate Secured | Home equity lines of credit | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	46		85
Unpaid principal balance without related allowance	46		86
Average recorded investment without related allowance	65	152
Commercial | Agriculture | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	856		724
Recorded investment with related allowance	384		400
Unpaid principal balance without related allowance	947		815
Unpaid principal balance with related allowance	388		400
Specific Allowance for Impaired Loans	63		39
Average recorded investment without related allowance	790	1,139
Average recorded investment with related allowance	392
Interest income recognized without related allowance	9	13
Interest income recognized with related allowance	3
Commercial | Agriculture | PCI loans
Investment in impaired loans
Recorded investment without related allowance	1,454		1,452
Unpaid principal balance without related allowance	1,500		1,500
Average recorded investment without related allowance	1,453	1,433
Interest income recognized without related allowance	27	29
Commercial | Commercial and industrial | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	2,896		2,295
Recorded investment with related allowance	2,323		1,944
Unpaid principal balance without related allowance	3,123		2,510
Unpaid principal balance with related allowance	2,364		1,972
Specific Allowance for Impaired Loans	239		156
Average recorded investment without related allowance	2,659	3,082
Average recorded investment with related allowance	2,070	1,581
Interest income recognized without related allowance	44	10
Interest income recognized with related allowance	29	25
Commercial | Commercial and industrial | PCI loans
Investment in impaired loans
Recorded investment without related allowance	244		297
Recorded investment with related allowance	439		486
Unpaid principal balance without related allowance	579		712
Unpaid principal balance with related allowance	439		499
Specific Allowance for Impaired Loans	32		33
Average recorded investment without related allowance	283	652
Average recorded investment with related allowance	450	678
Interest income recognized without related allowance	19	31
Interest income recognized with related allowance	7	11
Consumer | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	143		146
Unpaid principal balance without related allowance	159		$ 204
Average recorded investment without related allowance	144	137
Interest income recognized without related allowance	$ 1	$ 1

Loans and Allowance for Loan 45

Loans and Allowance for Loan and Lease Losses - TDRs (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)item	Mar. 31, 2015USD ($)item	Dec. 31, 2015USD ($)
Troubled debt restructurings
Allowance for credit losses of receivables, identified as TDRs under the newly adopted provisions	$ 400
Accruing loans that were classified as TDRs	10,715		$ 10,056
Non-Accruing loans that were classified as TDRs	6,128		6,203
Total loans classified as TDRs	$ 16,843		16,259
Number of TDRs | item	9	11
Pre-Modification Outstanding Recorded Investment	$ 1,355	$ 2,240
Post-Modification Outstanding Recorded Investment	$ 1,355	$ 2,240
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	$ 9,303		8,619
Non-Accruing loans that were classified as TDRs	6,052		6,091
Total loans classified as TDRs	$ 15,355		14,710
Troubled Debt Restructurings That Subsequently Defaulted
Number of TDRs | item	1	1
Recorded Investment	$ 80	$ 18
Non-PCI Loans | Real Estate Secured | Commercial real estate
Troubled debt restructurings
Accruing loans that were classified as TDRs	2,635		2,395
Non-Accruing loans that were classified as TDRs	135		435
Total loans classified as TDRs	2,770		2,830
Number of TDRs | item		3
Pre-Modification Outstanding Recorded Investment		$ 564
Post-Modification Outstanding Recorded Investment		$ 564
Non-PCI Loans | Real Estate Secured | Construction and land
Troubled debt restructurings
Accruing loans that were classified as TDRs	1,033		1,171
Non-Accruing loans that were classified as TDRs	3,914		3,968
Total loans classified as TDRs	4,947		5,139
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family
Troubled debt restructurings
Accruing loans that were classified as TDRs	281		613
Non-Accruing loans that were classified as TDRs			81
Total loans classified as TDRs	$ 281		694
Number of TDRs | item		2
Pre-Modification Outstanding Recorded Investment		$ 534
Post-Modification Outstanding Recorded Investment		$ 534
Troubled Debt Restructurings That Subsequently Defaulted
Number of TDRs | item	1
Recorded Investment	$ 80
Non-PCI Loans | Real Estate Secured | Farmland
Troubled debt restructurings
Accruing loans that were classified as TDRs	865		504
Non-Accruing loans that were classified as TDRs	80		82
Total loans classified as TDRs	945		586
Non-PCI Loans | Commercial | Commercial and industrial
Troubled debt restructurings
Accruing loans that were classified as TDRs	3,521		2,698
Non-Accruing loans that were classified as TDRs	1,530		1,515
Total loans classified as TDRs	$ 5,051		4,213
Number of TDRs | item	8	4
Pre-Modification Outstanding Recorded Investment	$ 1,345	$ 187
Post-Modification Outstanding Recorded Investment	1,345	$ 187
Troubled Debt Restructurings That Subsequently Defaulted
Number of TDRs | item		1
Recorded Investment		$ 18
Non-PCI Loans | Commercial | Agriculture
Troubled debt restructurings
Accruing loans that were classified as TDRs	856		1,124
Non-Accruing loans that were classified as TDRs	384
Total loans classified as TDRs	$ 1,240		1,124
Number of TDRs | item	1	1
Pre-Modification Outstanding Recorded Investment	$ 10	$ 898
Post-Modification Outstanding Recorded Investment	10	$ 898
Non-PCI Loans | Consumer
Troubled debt restructurings
Accruing loans that were classified as TDRs	112		114
Non-Accruing loans that were classified as TDRs	9		10
Total loans classified as TDRs	121		124
Number of TDRs | item		1
Pre-Modification Outstanding Recorded Investment		$ 57
Post-Modification Outstanding Recorded Investment		$ 57
PCI loans
Troubled debt restructurings
Accruing loans that were classified as TDRs	1,412		1,437
Non-Accruing loans that were classified as TDRs	76		112
Total loans classified as TDRs	1,488		1,549
PCI loans | Real Estate Secured | Commercial real estate
Troubled debt restructurings
Accruing loans that were classified as TDRs	917		922
Non-Accruing loans that were classified as TDRs	38		46
Total loans classified as TDRs	955		968
PCI loans | Real Estate Secured | Construction and land
Troubled debt restructurings
Accruing loans that were classified as TDRs	56		54
Total loans classified as TDRs	56		54
PCI loans | Commercial | Commercial and industrial
Troubled debt restructurings
Accruing loans that were classified as TDRs	439		461
Non-Accruing loans that were classified as TDRs	38		66
Total loans classified as TDRs	$ 477		$ 527

Loans and Allowance for Loan 46

Loans and Allowance for Loan and Lease Losses - ALLL Activity (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended	15 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Mar. 31, 2016
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	$ 17,452	$ 16,802	$ 16,802	$ 16,802
Charge-offs	(10)	(73)
Recoveries	123	184
Balance, at the end of the period	17,565	16,913	17,452	17,565
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment	367		254	367
Allowance for loan and lease losses collectively evaluated for impairment	17,119		17,119	17,119
Allowance for Loans acquired with deteriorated credit quality	79		79	79
Recorded investment in loan individually evaluated for impairment	17,387		16,303	17,387
Recorded investment in loan collectively evaluated for impairment	1,265,318		1,222,202	1,265,318
Recorded investment in loans acquired with deteriorated credit quality	8,641		8,775	8,641
Total gross loans held for investment	1,291,346		1,247,280	1,291,346
Reserve for off-balance sheet commitments				500
Non-PCI Loans
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	17,373
Balance, at the end of the period	17,486		17,373	17,486
Amount of allowance attributed to:
Total gross loans held for investment	1,282,705		1,238,505	1,282,705
PCI loans
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	79
Balance, at the end of the period	79		79	79
Amount of allowance attributed to:
Total gross loans held for investment	8,641		8,775	8,641
Allowance for losses on acquired loans and leases	100		100
MISN
Amount of allowance attributed to:
Total gross loans held for investment	160,300			160,300
MISN | Non-PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment	151,700		163,800	151,700
Allowance for losses on acquired loans and leases	200		200
Commercial
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	5,372	5,125	5,125	5,125
Charge-offs	(8)
Recoveries	101	167
Provision for loan and lease losses	127	(797)
Balance, at the end of the period	5,592	4,495	5,372	5,592
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment	302		195	302
Allowance for loan and lease losses collectively evaluated for impairment	5,258		5,144	5,258
Allowance for Loans acquired with deteriorated credit quality	32		33	32
Recorded investment in loan individually evaluated for impairment	6,459		5,363	6,459
Recorded investment in loan collectively evaluated for impairment	226,716		221,573	226,716
Recorded investment in loans acquired with deteriorated credit quality	2,137		2,235	2,137
Total gross loans held for investment	235,312		229,171	235,312
Commercial | Non-PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment	233,175		226,936	233,175
Commercial | PCI loans
Amount of allowance attributed to:
Total gross loans held for investment	2,137		2,235	2,137
Installment
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		202	202	202
Recoveries		3
Provision for loan and lease losses		(15)
Balance, at the end of the period		190
Construction and land
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	623
Recoveries	13
Provision for loan and lease losses	(78)
Balance, at the end of the period	558		623	558
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment			618
Allowance for Loans acquired with deteriorated credit quality			5
Recorded investment in loan individually evaluated for impairment			5,138
Recorded investment in loan collectively evaluated for impairment			30,249
Recorded investment in loans acquired with deteriorated credit quality			282
Consumer
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	173
Charge-offs	(2)
Recoveries	4
Provision for loan and lease losses	(16)
Balance, at the end of the period	159		173	159
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment	159		173	159
Recorded investment in loan individually evaluated for impairment	143		146	143
Recorded investment in loan collectively evaluated for impairment	5,298		5,887	5,298
Total gross loans held for investment	5,441		6,033	5,441
Consumer | Non-PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment	5,441		6,033	5,441
Unallocated
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	123	346	346	346
Provision for loan and lease losses	302	464
Balance, at the end of the period	425	810	123	425
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment	425		123	425
Other real estate secured
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	11,161	9,129	9,129	9,129
Charge-offs		(39)
Recoveries	5
Adjustments		3
Provision for loan and lease losses	(335)	281
Balance, at the end of the period	10,831	9,374	11,161	10,831
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment	65		59	65
Allowance for loan and lease losses collectively evaluated for impairment	10,725		11,061	10,725
Allowance for Loans acquired with deteriorated credit quality	41		41	41
Recorded investment in loan individually evaluated for impairment	5,488		5,656	5,488
Recorded investment in loan collectively evaluated for impairment	1,005,884		964,493	1,005,884
Recorded investment in loans acquired with deteriorated credit quality	6,237		6,258	6,237
Provision for loan losses, transfer from C&I to Land related to the re-characterization of a loan as part of a TDR		3
Land
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period		2,000	$ 2,000	2,000
Charge-offs		(34)
Recoveries		11
Provision for loan and lease losses		67
Balance, at the end of the period		$ 2,044
Land | Construction and land
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment	552			552
Allowance for Loans acquired with deteriorated credit quality	6			6
Recorded investment in loan individually evaluated for impairment	5,297			5,297
Recorded investment in loan collectively evaluated for impairment	27,420			27,420
Recorded investment in loans acquired with deteriorated credit quality	$ 267			$ 267

Loans and Allowance for Loan 47

Loans and Allowance for Loan and Lease Losses - Credit Quality (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Non-PCI loans by the internal risk grading system
Total Gross loans	$ 1,291,346	$ 1,247,280
Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	1,232,959	1,190,282
Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	14,943	12,048
Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	43,444	44,950
Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	1,050,593	1,012,076
Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	605,242	579,244
Real Estate Secured | Residential 1 to 4 family
Non-PCI loans by the internal risk grading system
Total Gross loans	171,035	165,829
Real Estate Secured | Farmland
Non-PCI loans by the internal risk grading system
Total Gross loans	129,787	120,566
Real Estate Secured | Multi-family residential
Non-PCI loans by the internal risk grading system
Total Gross loans	81,807	79,381
Real Estate Secured | Construction and land
Non-PCI loans by the internal risk grading system
Total Gross loans	32,984	35,669
Real Estate Secured | Home equity lines of credit
Non-PCI loans by the internal risk grading system
Total Gross loans	29,738	31,387
Commercial
Non-PCI loans by the internal risk grading system
Total Gross loans	235,312	229,171
Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	169,366	164,808
Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	65,946	64,363
Consumer
Non-PCI loans by the internal risk grading system
Total Gross loans	5,441	6,033
Non-PCI Loans
Non-PCI loans by the internal risk grading system
Total Gross loans	1,282,705	1,238,505
Non-PCI Loans | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	1,231,950	1,189,524
Non-PCI Loans | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	12,576	10,819
Non-PCI Loans | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	38,179	38,162
Non-PCI Loans | Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	1,044,089	1,005,536
Non-PCI Loans | Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	599,581	573,559
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	577,323	545,614
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	5,981	4,402
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	16,277	23,543
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family
Non-PCI loans by the internal risk grading system
Total Gross loans	170,459	165,256
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	169,843	164,226
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	105	405
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	511	625
Non-PCI Loans | Real Estate Secured | Farmland
Non-PCI loans by the internal risk grading system
Total Gross loans	129,787	120,566
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	127,456	118,740
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	774	245
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	1,557	1,581
Non-PCI Loans | Real Estate Secured | Multi-family residential
Non-PCI loans by the internal risk grading system
Total Gross loans	81,807	79,381
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	81,807	79,381
Non-PCI Loans | Real Estate Secured | Construction and land
Non-PCI loans by the internal risk grading system
Total Gross loans	32,717	35,387
Non-PCI Loans | Real Estate Secured | Construction and land | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	27,391	30,219
Non-PCI Loans | Real Estate Secured | Construction and land | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	910	939
Non-PCI Loans | Real Estate Secured | Construction and land | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	4,416	4,229
Non-PCI Loans | Real Estate Secured | Home equity lines of credit
Non-PCI loans by the internal risk grading system
Total Gross loans	29,738	31,387
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	29,456	31,103
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	282	284
Non-PCI Loans | Commercial
Non-PCI loans by the internal risk grading system
Total Gross loans	233,175	226,936
Non-PCI Loans | Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	168,683	164,025
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	154,999	152,979
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	4,236	4,730
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	9,448	6,316
Non-PCI Loans | Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	64,492	62,911
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	58,347	61,340
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	557	98
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	5,588	1,473
Non-PCI Loans | Consumer
Non-PCI loans by the internal risk grading system
Total Gross loans	5,441	6,033
Non-PCI Loans | Consumer | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	5,328	5,922
Non-PCI Loans | Consumer | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	13
Non-PCI Loans | Consumer | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	100	111
PCI loans
Non-PCI loans by the internal risk grading system
Total Gross loans	8,641	8,775
PCI loans | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	1,009	758
PCI loans | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	2,367	1,229
PCI loans | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	5,265	6,788
PCI loans | Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	6,504	6,540
PCI loans | Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	5,661	5,685
PCI loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	155
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	2,225	1,094
PCI loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	3,281	4,591
PCI loans | Real Estate Secured | Residential 1 to 4 family
Non-PCI loans by the internal risk grading system
Total Gross loans	576	573
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	456	455
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	120
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		118
PCI loans | Real Estate Secured | Construction and land
Non-PCI loans by the internal risk grading system
Total Gross loans	267	282
PCI loans | Real Estate Secured | Construction and land | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	267	228
PCI loans | Real Estate Secured | Construction and land | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans		54
PCI loans | Commercial
Non-PCI loans by the internal risk grading system
Total Gross loans	2,137	2,235
PCI loans | Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	683	783
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	131	75
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	22	81
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	530	627
PCI loans | Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	1,454	1,452
PCI loans | Commercial | Agriculture | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	$ 1,454	$ 1,452

Loans and Allowance for Loan 48

Loans and Allowance for Loan and Lease Losses - Aging (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Aging of loans held for investment
Current	$ 1,283,144	$ 1,239,201
30-59	32	66
60-89		195
Non-Accruing	8,170	7,818
Total	1,291,346	1,247,280
Non-PCI Loans
Aging of loans held for investment
Current	1,274,610	1,230,561
30-59	11	66
60-89		195
Non-Accruing	8,084	7,683
Total	1,282,705	1,238,505
Non-PCI Loans | Real Estate Secured | Commercial real estate
Aging of loans held for investment
Current	598,000	571,665
Non-Accruing	1,581	1,894
Total	599,581	573,559
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family
Aging of loans held for investment
Current	170,459	165,176
Non-Accruing		80
Total	170,459	165,256
Non-PCI Loans | Real Estate Secured | Farmland
Aging of loans held for investment
Current	129,707	120,483
Non-Accruing	80	83
Total	129,787	120,566
Non-PCI Loans | Real Estate Secured | Multi-family residential
Aging of loans held for investment
Current	81,807	79,381
Total	81,807	79,381
Non-PCI Loans | Real Estate Secured | Construction and land
Aging of loans held for investment
Current	28,453	31,419
Non-Accruing	4,264	3,968
Total	32,717	35,387
Non-PCI Loans | Real Estate Secured | Home equity lines of credit
Aging of loans held for investment
Current	29,692	31,303
Non-Accruing	46	84
Total	29,738	31,387
Non-PCI Loans | Commercial | Commercial and industrial
Aging of loans held for investment
Current	166,974	162,223
30-59	11	66
60-89		195
Non-Accruing	1,698	1,541
Total	168,683	164,025
Non-PCI Loans | Commercial | Agriculture
Aging of loans held for investment
Current	64,108	62,911
Non-Accruing	384
Total	64,492	62,911
Non-PCI Loans | Consumer
Aging of loans held for investment
Current	5,410	6,000
Non-Accruing	31	33
Total	5,441	6,033
PCI loans
Aging of loans held for investment
Current	8,534	8,640
30-59	21
Non-Accruing	86	135
Total	8,641	8,775
PCI loans | Real Estate Secured | Commercial real estate
Aging of loans held for investment
Current	5,622	5,639
Non-Accruing	39	46
Total	5,661	5,685
PCI loans | Real Estate Secured | Residential 1 to 4 family
Aging of loans held for investment
Current	267	282
Total	267	282
PCI loans | Real Estate Secured | Land
Aging of loans held for investment
Current	576
Total	576
PCI loans | Real Estate Secured | Construction and land
Aging of loans held for investment
Current		573
Total		573
PCI loans | Commercial | Commercial and industrial
Aging of loans held for investment
Current	615	694
30-59	21
Non-Accruing	47	89
Total	683	783
PCI loans | Commercial | Agriculture
Aging of loans held for investment
Current	1,454	1,452
Total	1,454	1,452
Current
Aging of loans held for investment
Non-Accruing	6,300	6,400
30 to 59 Days Past Due
Aging of loans held for investment
Non-Accruing	85,000	28,000
60 to 89 Days Past Due
Aging of loans held for investment
Non-Accruing	118,000	26,000
90+ Days Past Due
Aging of loans held for investment
Non-Accruing	$ 1,700	$ 1,400

Income Taxes - 10Q (Details)

Income Taxes - 10Q (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Income Taxes
Deferred tax valuation allowance	$ 0	$ 0
Deferred tax assets	18,715	$ 21,272
Loss of NOL utilization	$ 0

Goodwill and Other Intangible50

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Core deposit intangible
Gross Carrying Amount	$ 9,261
Accumulated Amortization	(5,206)
Net Carrying Amount	4,055
Estimated Amortization
Year 2,016	(944)
Year 2,017	(588)
Year 2,018	(549)
Year 2,019	(522)
Year 2,020	(441)
Year 2,021	(419)
Goodwill	24,885		$ 24,885
Amortization of Intangible Assets	243	$ 262
Year 2,016
Core deposit intangible
Net Carrying Amount	3,354		4,298
Year 2,017
Core deposit intangible
Net Carrying Amount	2,766		3,354
Year 2,018
Core deposit intangible
Net Carrying Amount	2,217		2,766
Year 2,019
Core deposit intangible
Net Carrying Amount	1,695		2,217
Year 2,020
Core deposit intangible
Net Carrying Amount	1,254		1,695
Year 2,021
Core deposit intangible
Net Carrying Amount	$ 835		$ 1,254

Share-based Compensation Plan51

Share-based Compensation Plans (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)plan$ / sharesshares	Mar. 31, 2015USD ($)$ / shares	Dec. 31, 2015planshares
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 | $	$ 207	$ 241
Unrecognized compensation expense | $	1,574	2,374
Aggregate intrinsic value of options exercised
Income tax benefit recognized related to share-based compensation | $	$ 2,000	$ 27,000
Weighted-average period over which expense is expected to be recognized	2 years 7 months 6 days	1 year 9 months 18 days
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
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
Stock options
Summary of the expenses the Company has recognized related to share-based compensation
Share-based compensation expense | $	$ 123	$ 112
Unrecognized compensation expense | $	$ 894	$ 1,310
Assumptions used in the calculation of the weighted average fair value of options granted
Expected volatility (as a percent)	31.85%	38.17%
Expected term	5 years	5 years
Dividend yield (as a percent)	3.30%	2.55%
Risk free rate (as a percent)	1.31%	1.57%
Weighted-average grant date fair value (in dollars per share) | $ / shares	$ 1.50	$ 2.17
Number of shares
Options Available for Grant (in shares)	2,182,814		2,228,601
Options outstanding, at the beginning of the period (in shares)	932,553
Granted (in shares)	36,022
Forfeited (in shares)	(11,503)
Exercised (in shares)	(6,830)
Options outstanding, at the end of the period (in shares)	950,242
Weighted Average Exercise Price
Options outstanding, at the beginning of the period (in dollars per share) | $ / shares	$ 7.19
Granted (in dollars per share) | $ / shares	7.27
Forfeited (in dollars per share) | $ / shares	7.05
Exercised (in dollars per share) | $ / shares	6.02
Options outstanding, at the end of the period (in dollars per share) | $ / shares	$ 7.21
Options vested or expected to vest
Shares	909,224
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 7.19
Weighted Average Remaining Contractual Life	7 years 6 months 7 days
Aggregate Intrinsic Value | $	$ 1,021,124
Options exercisable
Shares	431,405
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 7.02
Weighted Average Remaining Contractual Life	6 years 2 months 1 day
Aggregate Intrinsic Value | $	$ 715,577
Aggregate intrinsic value of options exercised
Total intrinsic value of options exercised | $	138,000
Income tax benefit recognized related to share-based compensation | $	$ 2,000
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 | $	$ 84	$ 129
Unrecognized compensation expense | $	$ 680	$ 1,064
Number of Shares
Balance at the beginning of the period (in shares)	162,394
Granted (in shares)	5,914
Vested (in shares)	(18,439)
Forfeited (in shares)	(10,163)
Balance at the end of the period (in shares)	139,706
Average Grant Date fair Value
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 7.30
Granted (in dollars per share) | $ / shares	7.27
Vested (in dollars per share) | $ / shares	7.74
Forfeited (in dollars per share) | $ / shares	7.71
Balance at the end of the period (in dollars per share) | $ / shares	$ 7.21
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 Restricted stock
Average Grant Date fair Value
Performance based grant (in shares)	13,245

Shareholders' Equity - Preferre

Shareholders' Equity - Preferred Stock, Cash Dividends and Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 27, 2016	Feb. 29, 2016	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Dec. 31, 2016	Jan. 06, 2016	Jun. 30, 2015
Stock line items
Cash dividend paid on common stock (in dollars per share)		$ 0.06
Cash dividend declared (in dollars per share)			$ 0.06	$ 0.05
Repurchase of shares, dollar amount authorized							$ 5
Shares repurchased and cancelled					226,170	281,598
Cost of shares repurchased and cancelled			$ 1.6			$ 2
Price per share of shares repurchased and cancelled			$ 7.23		$ 7.23	$ 7.28
Maximum
Stock line items
Repurchase of shares, dollar amount authorized								$ 5
Subsequent Event
Stock line items
Cash dividend declared (in dollars per share)	$ 0.06

Shareholders' Equity - Regulato

Shareholders' Equity - Regulatory Capital (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Common Equity Tier I capital to risk-weighted assets:
Phased-out rate of certain deferred tax assets and intangible assets	60.00%	40.00%
Capital conservation buffer
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 Ratio
Regulatory standard to be well capitalized (as a percent)	5.125%
2019 Minimum Common Equity Tier I Capital Ratio (as a percent)	7.00%
Leverage ratio
Regulatory standard to be well capitalized (as a percent)	4.00%
Tier I Risk-Based Capital Ratio
Regulatory standard to be well capitalized (as a percent)	6.625%
2019 Minimum Tier I Risk-based Capital Ratio (as a percent)	8.50%
Total Risk-Based Capital Ratio
Regulatory standard to be well capitalized (as a percent)	8.625%
2019 Minimum Total Risk-based Capital Ratio	10.50%
Minimum
Common Equity Tier I capital to risk-weighted assets:
CET I to risk-weighted assets	4.50%
Total Risk-Based Capital Ratio
Regulatory standard to be well capitalized (as a percent)	6.50%
Heritage Oaks Bank
Common Equity Tier I Capital Ratio
Actual Common Equity Tier I (as a percent)	6.50%	11.80%	12.48%
Leverage ratio
Actual Leverage ratio (as a percent)	5.00%	9.13%	9.50%
Tier I Risk-Based Capital Ratio
Actual Tier I capital (as a percent)	8.00%	11.80%	12.48%
Total Risk-Based Capital Ratio
Actual total risk based capital (as a percent)	10.00%	13.05%	13.74%
Heritage Oaks Bancorp
Common Equity Tier I Capital Ratio
Actual Common Equity Tier I (as a percent)	5.125%	12.23%	12.61%
Leverage ratio
Actual Leverage ratio (as a percent)	4.00%	9.86%	9.90%
Tier I Risk-Based Capital Ratio
Actual Tier I capital (as a percent)	6.625%	12.74%	13.01%
Total Risk-Based Capital Ratio
Actual total risk based capital (as a percent)	8.625%	13.99%	14.26%
Junior subordinated debentures
Total Risk-Based Capital Ratio
Actual, Capital Amount	$ 10.1	$ 10

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Calculation of both basic and diluted earnings (loss) per common share
Net income	$ 3,985	$ 4,069
Weighted average shares outstanding	34,096,379	34,107,168
Basic earnings per common share (in dollars per share)	$ 0.12	$ 0.12
Dilutive effect of share-based compensation awards (in shares)	108,078	159,314
Weighted average diluted shares outstanding	34,204,457	34,266,482
Diluted earnings per common share (in dollars per share)	$ 0.12	$ 0.12
Stock options
Shares excluded from the calculation of diluted earnings per share
Shares excluded from the calculation of diluted earnings per share	35,000	136,000

Commitments and Contingencies -

Commitments and Contingencies - Total Commitments (Details) - Heritage Oaks Bank - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies
Total commitments and standby letters of credit	$ 254,780	$ 255,093
Outstanding financial fixed rate commitments	24,400
Outstanding financial variable rate commitments	230,400
Commitments to extend credit
Commitments and Contingencies
Total commitments and standby letters of credit	242,061	242,125
Standby letters of credit
Commitments and Contingencies
Total commitments and standby letters of credit	12,719	12,968
Standby letters of credit | One customer
Commitments and Contingencies
Total commitments and standby letters of credit	$ 10,200	$ 10,400

Derivative Instruments (Details

Derivative Instruments (Details) $ in Thousands	Mar. 31, 2016USD ($)
Derivatives
Derivative assets, notional amount	$ 20,873
Derivative assets, fair value	877
Derivative liability, notional amount	20,873
Derivative liability, fair value	877
Interest rate swaps
Derivatives
Notional amount of derivative	20,900
Fair value of derivative	900
Interest rate swaps | Pay Floating Receive Fixed Contract
Derivatives
Derivative assets, notional amount	20,873
Derivative assets, fair value	877
Interest rate swaps | Pay Fixed Receive Floating Contract
Derivatives
Derivative liability, notional amount	20,873
Derivative liability, fair value	$ 877

Balance Sheet Offsetting (Detai

Balance Sheet Offsetting (Details) $ in Thousands	Mar. 31, 2016USD ($)
Derivatives
Gross amounts recognized in Consolidated Balance Sheets (asset)	$ 877
Gross amounts recognized in Consolidated Balance Sheets (liability)	877
Net amount presented in the Consolidated Balance Sheets (liability)	877
Gross cash collateral not offset in Consolidated Balance Sheets (liability)	900
Net amount not offset in Consolidated Balance Sheets	(23)
Not Designated as Hedging Instrument
Derivatives
Gross amounts recognized in Consolidated Balance Sheets (liability)	877
Net amount presented in the Consolidated Balance Sheets (liability)	877
Gross cash collateral not offset in Consolidated Balance Sheets (liability)	900
Net amount not offset in Consolidated Balance Sheets	(23)
Interest rate swaps | Pay Floating Receive Fixed Contract
Derivatives
Gross amounts recognized in Consolidated Balance Sheets (asset)	877
Interest rate swaps | Pay Fixed Receive Floating Contract
Derivatives
Gross amounts recognized in Consolidated Balance Sheets (liability)	$ 877

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Apr. 27, 2016	Mar. 31, 2016	Mar. 31, 2015
Subsequent events
Cash dividend declared (in dollars per share)		$ 0.06	$ 0.05
Subsequent Event
Subsequent events
Cash dividend declared (in dollars per share)	$ 0.06