Heritage Oaks Bancorp (HEOP) 10-Q 5 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 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	Jun. 30, 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		34,205,542
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 15,768	$ 15,610
Interest earning deposits in other banks	40,274	54,313
Total cash and cash equivalents	56,042	69,923
Investment securities available for sale, at fair value	446,877	450,935
Loans held for sale, at lower of cost or fair value	8,534	9,755
Gross loans held for investment	1,333,719	1,247,280
Net deferred loan fees	(1,181)	(1,132)
Allowance for loan and lease losses	(17,448)	(17,452)
Net loans held for investment	1,315,090	1,228,696
Premises and equipment, net	36,613	37,342
Bank-owned life insurance	33,284	32,850
Goodwill	24,885	24,885
Deferred tax assets, net	15,321	21,272
Federal Home Loan Bank stock	7,853	7,853
Other intangible assets	3,812	4,298
Other assets	13,221	11,930
Total assets	1,961,532	1,899,739
Liabilities
Non-interest bearing deposits	546,520	514,559
Interest bearing deposits	1,060,569	1,050,402
Total deposits	1,607,089	1,564,961
Short term FHLB borrowing	49,500	38,500
Long term FHLB borrowing	71,003	65,021
Junior subordinated debentures	10,529	10,438
Other liabilities	9,529	14,385
Total liabilities	1,747,650	1,693,305
Shareholders' Equity
Common stock, no par value; authorized: 100,000,000 shares; issued and outstanding: 34,205,542 shares and 34,353,014 shares as of June 30, 2016 and December 31, 2015, respectively.	163,931	165,517
Additional paid in capital	8,668	8,251
Retained earnings	36,295	32,200
Accumulated other comprehensive income	4,988	466
Total shareholders' equity	213,882	206,434
Total liabilities and shareholders' equity	$ 1,961,532	$ 1,899,739

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 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	34,205,542	34,353,014
Common stock, shares outstanding	34,205,542	34,353,014

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest Income
Loans, including fees	$ 15,315	$ 14,585	$ 29,930	$ 29,673
Investment securities	2,189	1,662	4,389	3,329
Other interest-earning assets	239	494	439	667
Total interest income	17,743	16,741	34,758	33,669
Interest Expense
Deposits	891	918	1,770	1,807
Other borrowings	553	581	1,071	1,122
Total interest expense	1,444	1,499	2,841	2,929
Net interest income before (reversal of) provision for loan and lease losses	16,299	15,242	31,917	30,740
(Reversal of) provision for loan and lease losses	(1,000)		(1,000)
Net interest income after (reversal of) provision for loan and lease losses	17,299	15,242	32,917	30,740
Non-Interest Income
Fees and service charges	1,194	1,213	2,403	2,420
Net gain on sale of mortgage loans	530	484	988	870
Earnings on BOLI	289	215	576	426
Other mortgage fee income	148	118	239	256
Gain on sale of investment securities	87		638	505
Gain on derivative instruments	65		597
Other income	270	241	549	795
Total non-interest income	2,583	2,271	5,990	5,272
Non-Interest Expense
Salaries and employee benefits	6,607	5,786	12,925	12,045
Professional services	1,972	1,702	3,858	3,108
Occupancy and equipment	1,649	1,748	3,276	3,335
Information technology	630	541	1,230	1,142
Regulatory assessments	315	300	625	597
Loan department expense	259	260	486	546
Sales and marketing	246	295	490	612
Amortization of intangible assets	243	262	486	524
Communication costs	125	144	250	285
OREO Write-downs			217
Other expense	1,018	391	1,842	1,048
Total non-interest expense	13,064	11,429	25,685	23,242
Income before income taxes	6,818	6,084	13,222	12,770
Income tax expense	2,603	2,284	5,022	4,901
Net income	4,215	3,800	8,200	7,869
Accretion on preferred stock		70		70
Net income available to common shareholders	$ 4,215	$ 3,730	$ 8,200	$ 7,799
Earnings Per Common Share
Basic (in dollars per share)	$ 0.12	$ 0.11	$ 0.24	$ 0.23
Diluted (in dollars per share)	0.12	0.11	0.24	0.23
Dividends Declared Per Common Share (in dollars per share)	$ 0.06	$ 0.06	$ 0.12	$ 0.11

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 4,215	$ 3,800	$ 8,200	$ 7,869
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) on securities arising during the period	5,566	(3,498)	8,441	(743)
Reclassification for net gains on investments included in net income	(87)		(638)	(505)
Other comprehensive income (loss), before income tax expense (benefit)	5,479	(3,498)	7,803	(1,248)
Income tax expense (benefit) related to items of other comprehensive income	2,304	(1,471)	3,281	(525)
Other comprehensive income (loss)	3,175	(2,027)	4,522	(723)
Comprehensive income	$ 7,390	$ 1,773	$ 12,722	$ 7,146

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				(3,771)		(3,771)
Repurchases of common stock		$ (28)				(28)
Repurchases of common stock (in shares)		(3,696)
Exercise of stock options		$ 191				191
Exercise of stock options (in shares)		40,344
Partial conversion of Series C preferred stock	$ (1,056)	$ 1,056	70	(70)
Partial conversion of Series C preferred stock (in shares)		348,697
Share-based compensation			535			535
Tax benefit of share-based compensation			69			69
Net issuance of restricted share awards (in shares)		23,837
Net income				7,869		7,869
Other comprehensive income					(723)	(723)
Balance at Jun. 30, 2015		$ 165,415	7,658	28,800	209	202,082
Balance (in shares) at Jun. 30, 2015		34,314,242
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				(4,105)		(4,105)
Repurchases of common stock		$ (1,635)				(1,635)
Repurchases of common stock (in shares)		(226,170)
Exercise of stock options		$ 49				49
Exercise of stock options (in shares)		7,877
Share-based compensation			525			525
Tax benefit of share-based compensation			(108)			(108)
Net issuance of restricted share awards (in shares)		70,821
Net income				8,200		8,200
Other comprehensive income					4,522	4,522
Balance at Jun. 30, 2016		$ 163,931	$ 8,668	$ 36,295	$ 4,988	$ 213,882
Balance (in shares) at Jun. 30, 2016		34,205,542

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Condensed Consolidated Statements of Shareholders' Equity
Cash dividend declared (in dollars per share)	$ 0.06	$ 0.06	$ 0.12	$ 0.11

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)
Cash Flows from Operating Activities
Net income	$ 8,200	$ 7,869
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,104	1,005
(Reversal of) provision for loan and lease losses	(1,000)
Write-downs on premises and equipment held for sale		138
Amortization of premiums / discounts	3,520	3,116
Amortization of intangible assets	486	524
Accretion of discount on acquired and purchased loans, net	(726)	(1,202)
Share-based compensation expense	569	535
Gain on sale of available for sale securities	(638)	(505)
Gain on sale of assets		(10)
Gain on sale of loans held for sale	(988)	(870)
Originations of loans held for sale	(70,907)	(76,630)
Proceeds from sale of loans held for sale	73,116	71,350
Net increase in bank owned life insurance	(434)	(321)
Decrease in deferred tax assets, net	2,669	2,265
Write-downs on OREO	217
Tax impact of share-based compensation	108	(69)
Decrease in other assets and other liabilities, net	(521)	1,073
Net cash provided by operating activities	14,775	8,268
Cash Flows from Investing Activities
Purchase of securities, available for sale	(95,375)	(97,489)
Sale of securities, available for sale	75,577	46,528
Proceeds from principal paydowns of securities, available for sale	28,845	22,941
Proceeds from sale of premises and equipment		9
(Increase) decrease in loans, net	(91,675)	2,591
Recoveries on previously charged-off loans	1,012	417
Proceeds from sale of foreclosed collateral		49
Purchase of property, premises and equipment, net	(375)	(1,191)
Net cash used in investing activities	(81,991)	(26,145)
Cash Flows from Financing Activities
Increase in deposits, net	42,134	116,849
Proceeds from Federal Home Loan Bank borrowing	142,500	36,000
Repayments of Federal Home Loan Bank borrowing	(125,500)	(38,000)
Net proceeds from exercise of stock options, including tax benefits	(59)	260
Dividends paid	(4,105)	(3,771)
Repurchases of common stock	(1,635)	(28)
Net cash provided by financing activities	53,335	111,310
Net (decrease) increase in cash and cash equivalents	(13,881)	93,433
Cash and cash equivalents, beginning of period	69,923	35,580
Cash and cash equivalents, end of period	56,042	129,013
Cash Flow Information
Interest paid	2,809	2,860
Income taxes paid	2,710	560
Non-Cash Flow Information
Change in unrealized gain (loss) on available for sale securities	$ 8,441	(743)
Loans transferred to foreclosed assets		416
Accretion on preferred stock		$ 70

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 and six months ended June 30, 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 became 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326). This update changes the methodology used by financial institutions under current U.S. GAAP to recognize credit losses in the financial statements. Currently, U.S. GAAP requires the use of the incurred loss model, whereby financial institutions recognize in current period earnings, incurred credit losses and those inherent in the financial statements, as of the date of the balance sheet. This guidance results in a new model for estimating the allowance for loan and lease losses, commonly referred to as the Current Expected Credit Loss (“CECL”) model. Under the CECL model, financial institutions are required to estimate future credit losses and recognize those losses in current period earnings. The amendments within the update are effective for fiscal years and all interim periods beginning after December 15, 2019, with early adoption permitted. Upon adoption of the amendments within this Update, the Company will be required to make a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. The Company is currently in the process of evaluating the impact the adoption of this update will have on its financial statements. 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 flows. 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 the adoption of this update, but does not expect a material impact on the Company’s financial statements. In February 2016, 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 and December 31, 2015: As of Fair Value Measurements Using June 30, 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 - - 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 six months ended June 30, 2016 and December 31, 2015 for assets measured at fair value on a recurring basis. As of June 30, 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 June 30, 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 six months ended June 30, 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 June 30, 2016 and December 31, 2015: As of Fair Value Measurements Using June 30, Quoted Prices in Significant Other Significant 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 - - As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 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 June 30, 2016 and December 31, 2015 follows: June 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 and December 31, 2015: June 30, 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 - 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 $ $ $ $ Available for sale investment securities which have an unrealized loss position at June 30, 2016 and December 31, 2015 are detailed below: June 30, 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 - - 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 42 and 104 securities were in an unrealized loss position as of June 30, 2016 and December 31, 2015, respectively. As of June 30, 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 depending 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 these securities prior to their anticipated recovery. As of June 30, 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 and six months ended June 30, 2016 and 2015 are listed below: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in thousands) Proceeds $ $ - $ $ Gross gains - Gross losses - The income tax expense related to these net realized gains was $37 thousand and $0 for the three months ended June 30, 2016 and 2015, respectively, and $0.3 million and $0.2 million for the six months ended June 30, 2016 and 2015, respectively. The table below provides a maturity distribution of available for sale investment securities at June 30, 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. June 30, 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 $165.6 million and $170.2 million, respectively at June 30, 2016, and $153.9 million and $155.2 million, respectively at December 31, 2015 were pledged to secure public deposits. At June 30, 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 and six months ended June 30, 2016 and 2015: For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in thousands) Taxable earnings on investment securities Mortgage backed securities $ $ $ $ Obligations of U.S. government agencies 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 and December 31, 2015: June 30, 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 $ $ - $ $ $ - $ Acquired non-PCI loans totaled $145.9 million and $163.8 million as of June 30, 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 June 30, 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 $35.8 million and $38.0 million at June 30, 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 June 30, 2016 and December 31, 2015, the unpaid principal balance of SBA loans serviced for others totaled $7.3 million and $8.5 million, respectively. The Company did not sell any SBA loans during the six months ended June 30, 2016 and 2015. Pledged Loans At June 30, 2016, the Bank has pledged $702.6 million of loans to the FHLB of San Francisco to secure a credit facility totaling $484.9 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. 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 June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 Unpaid Principal Balance Carrying Amount Unpaid Principal Balance Carrying Amount (dollars in thousands) Real Estate Secured Commercial $ $ $ $ Construction and land Residential 1 to 4 family 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 and six months ended June 30, 2016 and 2015: For the Three Months Ended, For the Six Months Ended, June 30, June 30, 2016 2015 2016 2015 (dollars in thousands) Beginning balance $ $ $ $ Accretion of income Reclassifications (to) from nonaccretable difference (1) Ending balance $ $ $ $ (1) Reclassification (to) from nonaccretable difference is attributed to 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: For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2016 June 30, 2016 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured 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 $ $ $ $ $ $ $ For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2016 June 30, 2016 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ 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 For the Six Months Ended December 31, 2015 June 30, 2015 June 30, 2015 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured 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 For the Six Months Ended December 31, 2015 June 30, 2015 June 30, 2015 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ 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 six month periods ended June 30, 2016 and 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 three month periods ended June 30, 2016 and 2015, respectively, and $0.3 million and $0.4 million for the six month periods ended June 30, 2016 and 2015, respectively. Interest income recognized on impaired loans in the tables above represents interest the Company recognized on accruing TDRs, as well as accruing PCI loans. At June 30, 2016, the Company had two home equity lines of credit loans, secured by residential 1 to 4 family real estate, that were in the process of foreclosure. These loans totaled $0.1 million at June 30, 2016. There were no residential 1 to 4 family properties included in foreclosed assets as of June 30, 2016. 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 and six month periods ended June 30, 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 June 30, 2016, the Company was not committed to lend any additional funds to borrowers with loans modified as TDRs. As of June 30, 2016 the Company had established valuation allowances for loans modified as TDRs totaling $0.3 million. The following table provides a summary of loans classified as TDRs as of June 30, 2016 and December 31, 2015: June 30, 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 Six Months Ended June 30, 2016 June 30, 2016 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 Commercial Commercial and industrial $ $ $ $ Agriculture - - - Total TDRs $ $ $ $ For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TDRs Investment Investment TDRs Investment Investment (dollars in thousands) Non-PCI Loans Real Estate Secured Farmland $ $ $ $ Commercial Land Residential 1 to 4 family Commercial Commercial and industrial Agriculture - - - Consumer - - - Total non-PCI loans PCI Loans Real Estate Secured Commercial Land Total PCI loans Total TDRs $ $ $ $ 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 Six Months Ended June 30, 2016 June 30, 2016 Number of Recorded Number of Recorded TDRs Investment TDRs Investment Non-PCI Loans (dollars in thousands) Real Estate Secured Farmland - $ - $ Total - $ - $ For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Commercial Commercial and industrial - $ - $ Total - $ - $ Allowance for Loan and Lease Losses The following table summarizes the activity in the allowance for loan and lease losses by portfolio segment for the periods presented below: For the Three Months Ended June 30, 2016 Balance March 31, 2016 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2016 (dollars in thousands) Other real estate secured $ $ - $ $ $ Commercial Construction and land - Consumer Unallocated Total $ $ $ $ $ For the Six Months Ended June 30, 2016 Balance December 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2016 (dollars in thousands) Other real estate secured $ - $ $ $ Commercial Construction and land - Consumer Unallocated Total $ $ $ $ $ For the Three Months Ended June 30, 2015 Balance March 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Construction and land - Consumer Unallocated Total $ $ $ $ - $ For the Six Months Ended June 30, 2015 Balance December 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial 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: June 30, 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 June 30, 2016, total gross loans of $1.3 billion in the table above include $153.9 million of non-PCI and PCI loans acquired in the MISN Transaction. These loans were initially recorded at fair value, and had no related ALLL on the acquisition date. At June 30, 2016 and December 31, 2015 the ALLL for acquired non-PCI loans 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 June 30, 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 June 30, 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 June 30, 2016 and December 31, 2015: June 30, 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 - Construction and land - - - Residential 1 to 4 family - - - 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: June 30, 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 - - - Construction and land - - - - Residential 1 to 4 family - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ $ - $ $ (1) At June 30, 2016, $6.1 million of non-accruing loans were current, $0.1 million were 30-59 days past due, $0.1 million were 60-89 days past due, and $0.5 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 and December 31, 2015 there was no valuation allowance for the Company’s deferred tax assets. The Company’s deferred tax assets totaled $15.3 million at June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 and December 31, 2015, the carrying value of goodwill was $24.9 million. At June 30, 2016 and December 31, 2015, the balance of CDI was $3.8 million and $4.3 million. CDI assets are subject to amortization. Amortization was $0.2 million and $0.3 million for the three months ended June 30, 2016 and 2015 and $0.5 million for the six months ended June 30, 2016 and 2015, 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 June 30, 2016: June 30, 2016 Gross Carrying Accumulated Net Carrying Amount Amortization Amount (dollars in thousands) Core deposit intangibles $ $ $ June 30, 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	6 Months Ended
	Jun. 30, 2016
Share-based Compensation Plans
Share-based Compensation Plans	Note 7. Share-based Compensation Plans As of June 30, 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, restricted stock awards, and restricted stock units. 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 June 30, 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 and to members of the Board of Directors. 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 recognized over the vesting period of those awards and included in salaries and employee benefits. 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 Company includes a forfeiture rate assumption in its accrual for compensation cost associated with restricted stock awards, which is based on the Company’s historical experience with such awards. The following table provides a summary of activity related to restricted stock granted for the six months ended June 30, 2016: Number of Average Grant Shares Date Fair Value Balance December 31, 2015 $ Granted Vested Forfeited Balance June 30, 2016 $ Included in the table above are performance-based grants of restricted stock totaling 13,245 shares as of June 30, 2016. Restricted Stock Units Restricted stock units are granted periodically for the benefit of employees. Upon vesting, certain of these awards settle in shares of the Company’s common stock, while others settle in cash. Awards that settle in shares of the Company’s common stock are made to executive officers, while those that settle in cash are made to other officers of the Bank. The Company recognizes compensation cost associated with restricted stock units that settle in shares of the Company’s common stock through charges to current period earnings, included in salaries and employee benefits, and a corresponding increase in additional paid in capital. Compensation cost for these awards is recognized ratably over the period in which the awards are expected to vest. For restricted stock units that settle in cash, the Company accrues a liability for the ultimate settlement of the award through charges to current period earnings, included in salaries and employee benefits. Compensation cost for these awards is recognized ratably over the period in which the awards are expected to vest. Restricted stock units that settle in shares of the Company’s common stock have vesting conditions which are based on pre-determined performance targets. Based on the achievement of these performance targets, the number of awards that vest can be adjusted upward to a maximum of 150% of the granted amount or downward to zero. Certain of the Company’s performance based restricted stock units have performance targets based on the Company’s return on average assets and total shareholder return over a specified period of time, relative to the Company’s pre-determined peer group. The grant date fair value of performance based restricted stock units that do not contain a market condition, such as those where vesting is based on total shareholder return, is equivalent to the price of the Company’s common stock on the date of grant. The Company incorporates a forfeiture rate assumption in its accrual for compensation cost for these awards, which is based on the Company’s historical experience with similar awards. For awards that contain a market condition, the Company employs the use of a Monte Carlo simulation through an independent party to determine the grant date fair value of those awards. The Monte Carlo simulation estimates the grant date fair value of these awards using input assumptions similar to those in the Black-Scholes model, however it also incorporates into the grant date fair value calculation the probability that the performance targets will or will not be achieved. The grant date fair value for restricted stock units that settle in cash is equivalent to the price of the Company’s common stock on the date of grant. However, the ultimate settlement value of these awards and the related compensation cost may fluctuate, based on increases and decreases in the value of the Company’s common stock. The following table provides a summary of activity related to restricted stock units granted for the six months ended June 30, 2016: Settle in Stock Settle in Cash Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Balance, December 31, 2015 - $ - - $ - Granted Balance, June 30, 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 below. 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 ratably 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 June 30, 2016: Options Outstanding Average Average Number Weighted Average Remaining Intrinsic of Shares Exercise Price Life (years) Value Balance, December 31, 2015 $ Granted Forfeited Exercised Balance, June 30, 2016 $ $ Exercisable June 30, 2016 $ $ Vested and expected to vest as of June 30, 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 June 30, 2016 was $12 thousand. The aggregate tax deficiency related to stock options and disqualifying dispositions on the exercise of incentive stock options was $108 thousand during the six month period ended June 30, 2016, and was recorded as an adjustment to additional paid in capital. The following table presents the assumptions used in the calculation of the weighted average fair value of options granted at various dates during the six months ended June 30, 2016 and 2015: For the Six Months Ended June 30, 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 market price for the Company’s common stock. 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 and six months ended June 30, 2016 and 2015: For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in thousands) Compensation expense: Stock options $ $ $ $ Restricted stock Restricted stock units - - Total $ $ $ $ Unrecognized compensation expense: Stock options $ $ Restricted stock Restricted stock units - Total $ $ 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 six months ended June 30, 2016 and 2015, the total income tax benefit recognized related to share-based compensation was $108 thousand, and $69 thousand, respectively. At June 30, 2016, compensation expense related to unvested stock options, restricted stock awards and restricted stock units is expected to be recognized over 2.4 years, 2.2 years, and 2.8 years respectively.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 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. 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. As discussed in Note 14. Subsequent Events of these condensed consolidated financial statements, on July 27, 2016 the Company’s Board of Directors declared a cash dividend of $0.06 per share payable on August 31, 2016 to shareholders of the Company’s common stock as of August 15, 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 includes 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 six months ended June 30, 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 June 30, 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 June 30, 2016 and December 31, 2015: Regulatory Standard to Be Considered Adequately Capitalized (1) Well Capitalized (2) June 30, 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 June 30, 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 to be considered “adequately capitalized,” including the Capital Conservation Buffer of 2.5%, will be as follows: CET I: 7.0%; Leverage Ratio: 6.5%; 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 June 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 2015 Net Income Shares Net Income Shares (dollars in thousands, except per share data) Net income $ $ Accretion on preferred stock - Net income allocated to participating securities Net income allocated to common shareholders $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $ For the Six Months Ended June 30, 2016 2015 Net Income Shares Net Income Shares (dollars in thousands, except per share data) Net income $ $ Accretion on preferred stock - Net income allocated to participating securities Net income allocated to common shareholders $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $ For the three and six months ended June 30, 2016 and 2015, common stock equivalents associated primarily with stock options, totaling approximately 65,000 shares and 99,000 shares, and 88,000 shares and 408,000 shares, respectively, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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 condensed consolidated financial statements. Commitments to Extend Credit In the normal course of business, the Bank enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in the Company’s condensed consolidated financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Standby letters of credit are conditional commitments to guarantee the performance of a Bank customer to a third party. Since many of the commitments and standby letters of credit are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. Management evaluates each customer’s credit worthiness on a case-by-case basis, and determines the amount of collateral deemed adequate to secure the loan, if collateral security is determined to be necessary for the particular loan. The Bank’s exposure to loan loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for loans reflected in the Company’s condensed consolidated financial statements. As of June 30, 2016 and December 31, 2015, the Company had the following outstanding financial commitments: June 30, 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 June 30, 2016 Commitments to extend credit and standby letters of credit are made at both fixed and variable rates of interest. At June 30, 2016, the Company had $26.8 million in fixed rate commitments and $250.7 million in variable rate commitments.

Regulatory Matters

Regulatory Matters	6 Months Ended
	Jun. 30, 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. Although compliance and resolution of the BSA Consent Order will ultimately be determined by the FDIC and DBO, the Company believes it is close to completing the remediation efforts required to address the issues identified in the BSA Consent Order.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2016
Derivative Instrument
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 June 30, 2016, the Company had swaps with matched terms with an aggregate notional amount of $22.2 million and a fair value of $1.5 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 six months ended June 30, 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 June 30, 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 June 30, 2016: June 30, 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	6 Months Ended
	Jun. 30, 2016
Balance Sheet Offsetting
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 a 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 June 30, 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) June 30, 2016 Financial liabilities: Derivatives not designated as hedging instruments $ $ - $ $ - $ $ Total $ $ - $ $ - $ $ As shown in the table above, as of June 30, 2016, the Company pledged cash collateral of $1.6 million for interest rate swaps in a liability position.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events
Subsequent Events	Note 14. Subsequent Events Dividend Declaration On July 27, 2016, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on August 31, 2016, to shareholders of the Company’s common stock as of August 15, 2016. Amendment to Stock Repurchase Program On July 22, 2016, the Company announced it had 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. Under the amended program, repurchase activity may commence on August 6, 2016 and may continue until February 8, 2017, 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 in addition to what has already been purchased under the program, 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.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 became 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326). This update changes the methodology used by financial institutions under current U.S. GAAP to recognize credit losses in the financial statements. Currently, U.S. GAAP requires the use of the incurred loss model, whereby financial institutions recognize in current period earnings, incurred credit losses and those inherent in the financial statements, as of the date of the balance sheet. This guidance results in a new model for estimating the allowance for loan and lease losses, commonly referred to as the Current Expected Credit Loss (“CECL”) model. Under the CECL model, financial institutions are required to estimate future credit losses and recognize those losses in current period earnings. The amendments within the update are effective for fiscal years and all interim periods beginning after December 15, 2019, with early adoption permitted. Upon adoption of the amendments within this Update, the Company will be required to make a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. The Company is currently in the process of evaluating the impact the adoption of this update will have on its financial statements. 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 flows. 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 the adoption of this update, but does not expect a material impact on the Company’s financial statements. In February 2016, 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)	6 Months Ended
	Jun. 30, 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 June 30, 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 - - 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 June 30, 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	As of Fair Value Measurements Using June 30, Quoted Prices in Significant Other Significant 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 - - As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 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	June 30, 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)	6 Months Ended
	Jun. 30, 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	June 30, 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 - 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	June 30, 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 - - 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in thousands) Proceeds $ $ - $ $ Gross gains - Gross losses -
Schedule of amortized cost and fair values maturities of available for sale investment securities	June 30, 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 For the Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in thousands) Taxable earnings on investment securities Mortgage backed securities $ $ $ $ Obligations of U.S. government agencies 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)	6 Months Ended
	Jun. 30, 2016
Loans and Allowance for Loan and Lease Losses
Summary of outstanding loan balances	June 30, 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	June 30, 2016 December 31, 2015 Unpaid Principal Balance Carrying Amount Unpaid Principal Balance Carrying Amount (dollars in thousands) Real Estate Secured Commercial $ $ $ $ Construction and land Residential 1 to 4 family 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, For the Six Months Ended, June 30, June 30, 2016 2015 2016 2015 (dollars in thousands) Beginning balance $ $ $ $ Accretion of income Reclassifications (to) from nonaccretable difference (1) Ending balance $ $ $ $ (1) Reclassification (to) from nonaccretable difference is attributed to changes in expected future cash flows on PCI loans.
Summary of the recorded investment in non-PCI and PCI impaired loans	For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2016 June 30, 2016 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured 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 $ $ $ $ $ $ $ For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2016 June 30, 2016 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ 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 For the Six Months Ended December 31, 2015 June 30, 2015 June 30, 2015 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) Non-PCI Loans Without Related Allowance Real Estate Secured 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 For the Six Months Ended December 31, 2015 June 30, 2015 June 30, 2015 Unpaid Specific Average Interest Average Interest Recorded Principal Allowance for Recorded Income Recorded Income Investment Balance Impaired Loans Investment Recognized Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ $ $ 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	June 30, 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 Six Months Ended June 30, 2016 June 30, 2016 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 Commercial Commercial and industrial $ $ $ $ Agriculture - - - Total TDRs $ $ $ $ For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TDRs Investment Investment TDRs Investment Investment (dollars in thousands) Non-PCI Loans Real Estate Secured Farmland $ $ $ $ Commercial Land Residential 1 to 4 family Commercial Commercial and industrial Agriculture - - - Consumer - - - Total non-PCI loans PCI Loans Real Estate Secured Commercial Land Total PCI loans Total TDRs $ $ $ $
Schedule of loans that were modified as troubled debt restructurings within the twelve months prior to the balance sheet date indicated for which there was a payment default	For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2016 Number of Recorded Number of Recorded TDRs Investment TDRs Investment Non-PCI Loans (dollars in thousands) Real Estate Secured Farmland - $ - $ Total - $ - $ For the Three Months Ended For the Six Months Ended June 30, 2015 June 30, 2015 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Commercial Commercial and industrial - $ - $ Total - $ - $
Summary of the activity in the allowance for loan and lease losses by portfolio segment	For the Three Months Ended June 30, 2016 Balance March 31, 2016 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2016 (dollars in thousands) Other real estate secured $ $ - $ $ $ Commercial Construction and land - Consumer Unallocated Total $ $ $ $ $ For the Six Months Ended June 30, 2016 Balance December 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2016 (dollars in thousands) Other real estate secured $ - $ $ $ Commercial Construction and land - Consumer Unallocated Total $ $ $ $ $ For the Three Months Ended June 30, 2015 Balance March 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Construction and land - Consumer Unallocated Total $ $ $ $ - $ For the Six Months Ended June 30, 2015 Balance December 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance June 30, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial Construction and land Consumer Unallocated Total $ $ $ $ - $
Schedule of allowance for loan and lease losses and the recorded investment in loans by impairment methodology	June 30, 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	June 30, 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 - Construction and land - - - Residential 1 to 4 family - - - 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	June 30, 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 - - - Construction and land - - - - Residential 1 to 4 family - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ $ - $ $ (1) At June 30, 2016, $6.1 million of non-accruing loans were current, $0.1 million were 30-59 days past due, $0.1 million were 60-89 days past due, and $0.5 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)	6 Months Ended
	Jun. 30, 2016
Goodwill and Other Intangible Assets
Summary of the gross carrying amount, accumulated amortization and net carrying amount of CDI	June 30, 2016 Gross Carrying Accumulated Net Carrying Amount Amortization Amount (dollars in thousands) Core deposit intangibles $ $ $
Summary of an estimate for future amortization expense	June 30, 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)	6 Months Ended
	Jun. 30, 2016
Share-based Compensation Plans
Summary of activity related to restricted stock granted	Number of Average Grant Shares Date Fair Value Balance December 31, 2015 $ Granted Vested Forfeited Balance June 30, 2016 $
Summary of activity related to restricted stock units granted	Settle in Stock Settle in Cash Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Balance, December 31, 2015 - $ - - $ - Granted Balance, June 30, 2016 $ $
Summary of activity related to options that have vested or are expected to vest and exercisable options	Options Outstanding Average Average Number Weighted Average Remaining Intrinsic of Shares Exercise Price Life (years) Value Balance, December 31, 2015 $ Granted Forfeited Exercised Balance, June 30, 2016 $ $ Exercisable June 30, 2016 $ $ Vested and expected to vest as of June 30, 2016 $ $
Schedule of assumptions used in the calculation of weighted average fair value of options granted	For the Six Months Ended June 30, 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 For the Six Months Ended June 30, June 30, 2016 2015 2016 2015 (dollars in thousands) Compensation expense: Stock options $ $ $ $ Restricted stock Restricted stock units - - Total $ $ $ $ Unrecognized compensation expense: Stock options $ $ Restricted stock Restricted stock units - Total $ $

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 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) June 30, 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 June 30, 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 to be considered “adequately capitalized,” including the Capital Conservation Buffer of 2.5%, will be as follows: CET I: 7.0%; Leverage Ratio: 6.5%; 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)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share
Schedule of calculation of basic and diluted earnings per common share	For the Three Months Ended June 30, 2016 2015 Net Income Shares Net Income Shares (dollars in thousands, except per share data) Net income $ $ Accretion on preferred stock - Net income allocated to participating securities Net income allocated to common shareholders $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $ For the Six Months Ended June 30, 2016 2015 Net Income Shares Net Income Shares (dollars in thousands, except per share data) Net income $ $ Accretion on preferred stock - Net income allocated to participating securities Net income allocated to common shareholders $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies.
Schedule of outstanding financial commitments	June 30, 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 June 30, 2016

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instrument
Schedule of derivative instruments	June 30, 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)	6 Months Ended
	Jun. 30, 2016
Balance Sheet Offsetting
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) June 30, 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	6 Months Ended
	Jun. 30, 2016USD ($)segment	Dec. 31, 2015USD ($)
Financial instruments the Company measures at fair value on a recurring basis
Total assets	$ 1,961,532	$ 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	Jun. 30, 2016	Dec. 31, 2015
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	$ 446,877	$ 450,935
Derivative Liability	1,503
Obligations of U.S. government agencies
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	58,016	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	240,838	245,235
Mortgage-backed securities - Non-agency
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	26,749	34,317
State and municipal securities
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	111,544	108,406
Asset backed securities
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	9,730	15,627
Other investments
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments		32
Assets At Fair Value
Financial instruments the Company measures at fair value on a recurring basis
Available-for-sale investments	446,877	450,935
Assets At Fair Value | Interest rate swaps
Financial instruments the Company measures at fair value on a recurring basis
Derivative assets	1,503
Derivative Liability	1,503
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		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	446,877	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	1,503
Derivative Liability	1,503
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		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		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	448,380	450,903
Total liabilities measured on a recurring bases	1,503
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	58,016	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	240,838	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	26,749	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	111,544	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	9,730	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	1,503
Derivative Liability	1,503
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	448,380	450,935
Total liabilities measured on a recurring bases	1,503
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	58,016	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	240,838	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	26,749	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	111,544	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	9,730	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		$ 32
Recurring basis | Assets At Fair Value | Interest rate swaps
Financial instruments the Company measures at fair value on a recurring basis
Derivative assets	1,503
Derivative Liability	$ 1,503

Fair Value of Assets and Liab36

Fair Value of Assets and Liabilities - Non-recurring (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)
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
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	111
Non-recurring basis | Significant Other Observable Inputs (Level 2) | Commercial real estate
Assets
Impaired loans	111	111
Non-recurring basis | Assets At Fair Value
Assets
Total assets measured on a non-recurring basis	111	111
Non-recurring basis | Assets At Fair Value | Commercial real estate
Assets
Impaired loans	$ 111	$ 111

Fair Value of Assets and Liab37

Fair Value of Assets and Liabilities - Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Investment securities available for sale, at fair value	$ 446,877	$ 450,935
Liabilities
Non-interest bearing deposits	546,520	514,559
Junior subordinated debentures	10,529	10,438
Derivative Liability	1,503
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Notional Amount	277,466	255,093
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Cost to Cede or Assume	2,775	2,551
Carrying Amount
Assets
Cash and cash equivalents	56,042	69,923
Investment securities available for sale, at fair value	446,877	450,935
Federal Home Loan Bank stock	7,853	7,853
Loans receivable, net	1,315,090	1,228,696
Loans held for sale	8,534	9,755
Accrued interest receivable	6,540	6,256
Liabilities
Non-interest bearing deposits	546,520	514,559
Interest bearing deposits	1,060,569	1,050,402
Federal Home Loan Bank advances	120,503	103,521
Junior subordinated debentures	10,529	10,438
Accrued interest payable	422	390
Assets At Fair Value
Assets
Cash and cash equivalents	56,042	69,923
Investment securities available for sale, at fair value	446,877	450,935
Loans receivable, net	1,330,362	1,250,903
Loans held for sale	8,534	9,755
Accrued interest receivable	6,540	6,256
Liabilities
Non-interest bearing deposits	546,520	514,559
Interest bearing deposits	1,060,804	1,051,731
Federal Home Loan Bank advances	122,657	104,718
Junior subordinated debentures	8,252	8,195
Accrued interest payable	422	390
Assets At Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	56,042	69,923
Investment securities available for sale, at fair value		32
Liabilities
Non-interest bearing deposits	546,520	514,559
Assets At Fair Value | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	446,877	450,903
Loans held for sale	8,534	9,755
Accrued interest receivable	2,503	2,589
Liabilities
Interest bearing deposits	1,060,804	1,051,731
Federal Home Loan Bank advances	122,657	104,718
Accrued interest payable	422	390
Assets At Fair Value | Significant Unobservable Inputs (Level 3)
Assets
Loans receivable, net	1,330,362	1,250,903
Accrued interest receivable	4,037	3,667
Liabilities
Junior subordinated debentures	8,252	8,195
Obligations of U.S. government agencies
Assets
Investment securities available for sale, at fair value	58,016	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	58,016	47,318
Obligations of U.S. government agencies | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	58,016	47,318
Mortgage-backed securities - U.S. government sponsored entities and agencies
Assets
Investment securities available for sale, at fair value	240,838	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	240,838	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	240,838	245,235
Mortgage-backed securities - Non-agency
Assets
Investment securities available for sale, at fair value	26,749	34,317
Mortgage-backed securities - Non-agency | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	26,749	34,317
Mortgage-backed securities - Non-agency | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	26,749	34,317
State and municipal securities
Assets
Investment securities available for sale, at fair value	111,544	108,406
State and municipal securities | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	111,544	108,406
State and municipal securities | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	111,544	108,406
Asset backed securities
Assets
Investment securities available for sale, at fair value	9,730	15,627
Asset backed securities | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Investment securities available for sale, at fair value	9,730	15,627
Asset backed securities | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value	9,730	15,627
Other investments
Assets
Investment securities available for sale, at fair value		32
Other investments | Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Investment securities available for sale, at fair value		32
Other investments | Recurring basis | Assets At Fair Value
Assets
Investment securities available for sale, at fair value		$ 32
Interest rate swaps | Carrying Amount
Assets
Derivative Asset	1,503
Liabilities
Derivative Liability	1,503
Interest rate swaps | Assets At Fair Value
Assets
Derivative Asset	1,503
Liabilities
Derivative Liability	1,503
Interest rate swaps | Assets At Fair Value | Significant Other Observable Inputs (Level 2)
Assets
Derivative Asset	1,503
Liabilities
Derivative Liability	1,503
Interest rate swaps | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Derivative Asset	1,503
Liabilities
Derivative Liability	1,503
Interest rate swaps | Recurring basis | Assets At Fair Value
Assets
Derivative Asset	1,503
Liabilities
Derivative Liability	$ 1,503

Investment Securities - Fair Va

Investment Securities - Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	$ 438,270	$ 450,131
Gross Unrealized Gains	10,282	4,741
Gross Unrealized Losses	(1,675)	(3,937)
Fair Value	446,877	450,935
Obligations of U.S. government agencies
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	58,070	47,478
Gross Unrealized Gains	366	269
Gross Unrealized Losses	(420)	(429)
Fair Value	58,016	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	238,974	246,561
Gross Unrealized Gains	2,634	986
Gross Unrealized Losses	(770)	(2,312)
Fair Value	240,838	245,235
Mortgage-backed securities - Non-agency
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	26,624	34,645
Gross Unrealized Gains	252
Gross Unrealized Losses	(127)	(328)
Fair Value	26,749	34,317
State and municipal securities
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	104,514	105,164
Gross Unrealized Gains	7,030	3,486
Gross Unrealized Losses		(244)
Fair Value	111,544	108,406
Asset backed securities
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total	10,088	16,183
Gross Unrealized Losses	(358)	(556)
Fair Value	$ 9,730	15,627
Other investments
Reconciliation of amortized cost to fair value of investment securities reported as available for sale
Total		100
Gross Unrealized Losses		(68)
Fair Value		$ 32

Investment Securities - Unreali

Investment Securities - Unrealized Losses (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)security	Dec. 31, 2015USD ($)security
Investment securities
Less Than Twelve Months, Fair Value	$ 56,930	$ 213,195
Less Than Twelve Months, Unrealized Loss	(559)	(2,542)
Twelve Months or More, Fair Value	52,660	50,336
Twelve Months or More, Unrealized Loss	(1,116)	(1,395)
Total, Fair Value	109,590	263,531
Total, Unrealized Loss	$ (1,675)	$ (3,937)
Securities in an unrealized loss position
Securities in an unrealized loss position | security	42	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	$ 7,769	$ 34,533
Less Than Twelve Months, Unrealized Loss	(35)	(429)
Twelve Months or More, Fair Value	24,004
Twelve Months or More, Unrealized Loss	(385)
Total, Fair Value	31,773	34,533
Total, Unrealized Loss	(420)	(429)
Mortgage-backed securities - U.S. government sponsored entities and agencies
Investment securities
Less Than Twelve Months, Fair Value	42,250	131,570
Less Than Twelve Months, Unrealized Loss	(435)	(1,485)
Twelve Months or More, Fair Value	16,248	31,558
Twelve Months or More, Unrealized Loss	(335)	(827)
Total, Fair Value	58,498	163,128
Total, Unrealized Loss	(770)	(2,312)
Mortgage-backed securities - Non-agency
Investment securities
Less Than Twelve Months, Fair Value	6,911	31,400
Less Than Twelve Months, Unrealized Loss	(89)	(317)
Twelve Months or More, Fair Value	2,679	2,917
Twelve Months or More, Unrealized Loss	(38)	(11)
Total, Fair Value	9,590	34,317
Total, Unrealized Loss	(127)	(328)
State and municipal securities
Investment securities
Less Than Twelve Months, Fair Value		15,660
Less Than Twelve Months, Unrealized Loss		(243)
Twelve Months or More, Fair Value		235
Twelve Months or More, Unrealized Loss		(1)
Total, Fair Value		15,895
Total, Unrealized Loss		(244)
Asset backed securities
Investment securities
Twelve Months or More, Fair Value	9,729	15,626
Twelve Months or More, Unrealized Loss	(358)	(556)
Total, Fair Value	9,729	15,626
Total, Unrealized Loss	$ (358)	(556)
Other investments
Investment securities
Less Than Twelve Months, Fair Value		32
Less Than Twelve Months, Unrealized Loss		(68)
Total, Fair Value		32
Total, Unrealized Loss		$ (68)

Investment Securities - Proceed

Investment Securities - Proceeds (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Proceeds from the sales and calls of securities and the associated gains and losses
Proceeds	$ 18,298		$ 75,577	$ 46,528
Gross gains	149		1,020	679
Gross losses	(62)		(382)	(174)
Income tax expense related to net realized gains on sale of securities	$ 37	$ 0	$ 300	$ 200

Investment Securities - MBS Mat

Investment Securities - MBS Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available for sale securities, Amortized cost
Due one year or less	$ 39,563	$ 51,049
Due after one year through five years	149,395	153,444
Due after five years through ten years	167,301	182,996
Due after ten years	82,011	62,642
Total	438,270	450,131
Available for sale securities, Fair Value
Due one year or less	39,648	50,978
Due after one year through five years	150,587	152,916
Due after five years through ten years	173,908	184,870
Due after ten years	82,734	62,171
Total	446,877	450,935
Securities pledged to secure public deposits
Available for sale securities, Amortized cost
Total	165,600	153,900
Available for sale securities, Fair Value
Total	$ 170,200	$ 155,200

Investment Securities - Investm

Investment Securities - Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings on both taxable and tax-exempt investment securities
Total	$ 2,189	$ 1,662	$ 4,389	$ 3,329
Mortgage backed securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	1,204	738	2,458	1,591
Obligations of U.S. government agencies
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	207	191	345	326
State and municipal securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	145	126	332	188
Earnings on investment securities exempt from federal taxation	607	575	1,186	1,144
Asset backed securities
Earnings on both taxable and tax-exempt investment securities
Taxable earnings on investment securities	$ 26	$ 32	$ 68	$ 80

Loans and Allowance for Loan 43

Loans and Allowance for Loan and Lease Losses - Loan Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Outstanding loan balances
Total gross loans held for investment	$ 1,333,719		$ 1,333,719			$ 1,247,280
Net deferred loan fees	(1,181)		(1,181)			(1,132)
Allowance for loan and lease losses	(17,448)	$ (16,982)	(17,448)	$ (16,982)	$ (17,565)	(17,452)	$ (16,913)	$ (16,802)
Net loans held for investment	1,315,090		1,315,090			1,228,696
Loans held for sale	8,534		8,534			9,755
Concentration of Credit Risk
Loan portfolio collateralized by various forms of real estate	1,100		1,100			1,000
Pledged Loans
Loans pledged as collateral to FHLB	702,600		702,600
FHLB secured credit facility	484,900		484,900
FHLB secured line of credit	10,200		10,200
Loans Serviced for Others
Unpaid principal balance of loans serviced for others, exclusive of SBA loans	35,800		35,800			38,000
Unpaid principal balance of SBA loans serviced for others	7,300		7,300			8,500
Available-for-sale Securities
Accretable yield, or income expected to be collected
Balance at the beginning of the period	3,718	4,243	3,821	4,374
Accretion of income	(439)	(254)	(655)	(932)
Reclassifications (to) from nonaccretable difference	(10)	475	103	1,022
Balance at the end of the period	3,269	4,464	3,269	4,464
Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	1,325,702		1,325,702			1,238,505
Net deferred loan fees	(1,181)		(1,181)			(1,132)
Allowance for loan and lease losses	(17,371)		(17,371)			(17,373)
Net loans held for investment	1,307,150		1,307,150			1,220,000
Loans held for sale	8,534		8,534			9,755
PCI loans
Outstanding loan balances
Total gross loans held for investment	8,017		8,017			8,775
Allowance for loan and lease losses	(77)		(77)			(79)
Net loans held for investment	7,940		7,940			8,696
Unpaid Principal Balance	9,893		9,893			11,107
Carrying Amount	8,017		8,017			8,775
MISN | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	145,900		145,900			163,800
Real Estate Secured
Outstanding loan balances
Total gross loans held for investment	1,084,069		1,084,069			1,012,076
Real Estate Secured | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	1,078,055		1,078,055			1,005,536
Real Estate Secured | PCI loans
Outstanding loan balances
Total gross loans held for investment	6,014		6,014			6,540
Unpaid Principal Balance	7,547		7,547			8,396
Carrying Amount	6,014		6,014			6,540
Real Estate Secured | Commercial real estate
Outstanding loan balances
Total gross loans held for investment	618,400		618,400			579,244
Real Estate Secured | Commercial real estate | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	612,766		612,766			573,559
Real Estate Secured | Commercial real estate | PCI loans
Outstanding loan balances
Total gross loans held for investment	5,634		5,634			5,685
Unpaid Principal Balance	7,006		7,006			7,139
Carrying Amount	5,634		5,634			5,685
Real Estate Secured | Residential 1 to 4 family
Outstanding loan balances
Total gross loans held for investment	184,097		184,097			165,829
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	183,976		183,976			165,256
Real Estate Secured | Residential 1 to 4 family | PCI loans
Outstanding loan balances
Total gross loans held for investment	121		121			573
Unpaid Principal Balance	196		196			875
Carrying Amount	121		121			573
Real Estate Secured | Farmland
Outstanding loan balances
Total gross loans held for investment	131,574		131,574			120,566
Real Estate Secured | Farmland | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	131,574		131,574			120,566
Real Estate Secured | Multi-family residential
Outstanding loan balances
Total gross loans held for investment	85,254		85,254			79,381
Real Estate Secured | Multi-family residential | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	85,254		85,254			79,381
Real Estate Secured | Construction and land
Outstanding loan balances
Total gross loans held for investment	36,753		36,753			35,669
Real Estate Secured | Construction and land | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	36,494		36,494			35,387
Real Estate Secured | Construction and land | PCI loans
Outstanding loan balances
Total gross loans held for investment	259		259			282
Unpaid Principal Balance	345		345			382
Carrying Amount	259		259			282
Real Estate Secured | Home equity lines of credit
Outstanding loan balances
Total gross loans held for investment	27,991		27,991			31,387
Real Estate Secured | Home equity lines of credit | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	27,991		27,991			31,387
Commercial
Outstanding loan balances
Total gross loans held for investment	244,706		244,706			229,171
Allowance for loan and lease losses	(5,609)	(4,993)	(5,609)	(4,993)	(5,592)	(5,372)	(4,495)	(5,125)
Commercial | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	242,703		242,703			226,936
Commercial | PCI loans
Outstanding loan balances
Total gross loans held for investment	2,003		2,003			2,235
Unpaid Principal Balance	2,346		2,346			2,711
Carrying Amount	2,003		2,003			2,235
Commercial | Commercial and industrial
Outstanding loan balances
Total gross loans held for investment	182,645		182,645			164,808
Commercial | Commercial and industrial | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	182,102		182,102			164,025
Commercial | Commercial and industrial | PCI loans
Outstanding loan balances
Total gross loans held for investment	543		543			783
Unpaid Principal Balance	846		846			1,211
Carrying Amount	543		543			783
Commercial | Agriculture
Outstanding loan balances
Total gross loans held for investment	62,061		62,061			64,363
Commercial | Agriculture | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	60,601		60,601			62,911
Commercial | Agriculture | PCI loans
Outstanding loan balances
Total gross loans held for investment	1,460		1,460			1,452
Unpaid Principal Balance	1,500		1,500			1,500
Carrying Amount	1,460		1,460			1,452
Consumer
Outstanding loan balances
Total gross loans held for investment	4,944		4,944			6,033
Allowance for loan and lease losses	(182)	$ (171)	(182)	$ (171)	$ (159)	(173)	$ (190)	$ (202)
Consumer | Non-PCI Loans
Outstanding loan balances
Total gross loans held for investment	$ 4,944		$ 4,944			$ 6,033

Loans and Allowance for Loan 44

Loans and Allowance for Loan and Lease Losses - Impaired Loans (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)loan	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)loan	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Investment in impaired loans
Interest loss related to rate concessions on certain TDRs	$ 200	$ 200	$ 300	$ 400
Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	12,552		12,552		$ 13,524
Recorded investment with related allowance	2,837		2,837		2,779
Unpaid principal balance without related allowance	18,759		18,759		20,006
Unpaid principal balance with related allowance	2,918		2,918		3,037
Specific Allowance for Impaired Loans	309		309		254
Average recorded investment without related allowance	13,471	12,040	13,579	11,531
Average recorded investment with related allowance	2,916	6,093	2,781	6,116
Interest income recognized without related allowance	118	80	243	180
Interest income recognized with related allowance	28	16	64	29
Recorded Investment	15,389		15,389		16,303
Unpaid Principal Balance	21,677		21,677		23,043
Average Recorded Investment	16,387	18,133	16,360	17,647
Interest Income Recognized	146	96	307	209
PCI loans
Investment in impaired loans
Recorded investment without related allowance	6,883		6,883		7,531
Recorded investment with related allowance	1,134		1,134		1,244
Unpaid principal balance without related allowance	8,756		8,756		9,840
Unpaid principal balance with related allowance	1,137		1,137		1,267
Specific Allowance for Impaired Loans	77		77		79
Average recorded investment without related allowance	7,175	7,942	7,301	8,114
Average recorded investment with related allowance	1,155	1,856	1,176	1,865
Interest income recognized without related allowance	420	217	615	845
Interest income recognized with related allowance	19	38	40	87
Recorded Investment	8,017		8,017		8,775
Unpaid Principal Balance	9,893		9,893		11,107
Average Recorded Investment	8,330	9,798	8,477	9,979
Interest Income Recognized	$ 439	255	$ 655	932
Residential 1 to 4 family
Foreclosures
Number of foreclosures | loan	0		0
Foreclosed assets	$ 0		$ 0
Home equity lines of credit
Foreclosures
Number of foreclosures | loan	2		2
Foreclosed assets	$ 100		$ 100
Real Estate Secured | Commercial real estate | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	2,429		2,429		3,855
Recorded investment with related allowance	283		283		435
Unpaid principal balance without related allowance	3,531		3,531		5,328
Unpaid principal balance with related allowance	303		303		665
Specific Allowance for Impaired Loans	36		36		59
Average recorded investment without related allowance	3,179	4,263	3,451	4,211
Average recorded investment with related allowance	286	476	289	483
Interest income recognized without related allowance	31	38	62	75
Interest income recognized with related allowance	4		8
Real Estate Secured | Commercial real estate | PCI loans
Investment in impaired loans
Recorded investment without related allowance	5,116		5,116		5,156
Recorded investment with related allowance	518		518		529
Unpaid principal balance without related allowance	6,486		6,486		6,601
Unpaid principal balance with related allowance	520		520		538
Specific Allowance for Impaired Loans	40		40		41
Average recorded investment without related allowance	5,126	4,951	5,136	5,073
Average recorded investment with related allowance	521	806	524	800
Interest income recognized without related allowance	124	125	246	665
Interest income recognized with related allowance	9	19	19	49
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	274		274		694
Unpaid principal balance without related allowance	426		426		860
Average recorded investment without related allowance	278	680	416	540
Interest income recognized without related allowance	5	1	10	1
Real Estate Secured | Residential 1 to 4 family | PCI loans
Investment in impaired loans
Recorded investment without related allowance	121		121		573
Unpaid principal balance without related allowance	196		196		875
Average recorded investment without related allowance	349	449	423	450
Average recorded investment with related allowance		115		114
Interest income recognized without related allowance	231	13	249	24
Interest income recognized with related allowance		3		6
Real Estate Secured | Construction and land | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	4,838		4,838		5,138
Unpaid principal balance without related allowance	9,438		9,438		9,615
Average recorded investment without related allowance	5,067	1,496	5,091	1,570
Interest income recognized without related allowance	19	24	42	47
Real Estate Secured | Construction and land | PCI loans
Investment in impaired loans
Recorded investment without related allowance	59		59		53
Recorded investment with related allowance	200		200		229
Unpaid principal balance without related allowance	145		145		152
Unpaid principal balance with related allowance	200		200		230
Specific Allowance for Impaired Loans	5		5		5
Average recorded investment without related allowance	58	555	56	556
Average recorded investment with related allowance	206	274	213	280
Interest income recognized without related allowance	9	20	18	38
Interest income recognized with related allowance	3	5	7	10
Real Estate Secured | Farmland | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	401		401		587
Unpaid principal balance without related allowance	406		406		588
Average recorded investment without related allowance	673	725	644	578
Interest income recognized without related allowance	11	3	23	19
Real Estate Secured | Land | Non-PCI Loans
Investment in impaired loans
Average recorded investment with related allowance		4,637		4,666
Real Estate Secured | Home equity lines of credit | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	84		84		85
Unpaid principal balance without related allowance	86		86		86
Average recorded investment without related allowance	65	66	72	130
Commercial | Agriculture | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	1,369		1,369		724
Recorded investment with related allowance	363		363		400
Unpaid principal balance without related allowance	1,459		1,459		815
Unpaid principal balance with related allowance	369		369		400
Specific Allowance for Impaired Loans	88		88		39
Average recorded investment without related allowance	1,112	657	983	678
Average recorded investment with related allowance	373		382
Interest income recognized without related allowance	12	1	21	1
Interest income recognized with related allowance			3
Commercial | Agriculture | PCI loans
Investment in impaired loans
Recorded investment without related allowance	1,460		1,460		1,452
Unpaid principal balance without related allowance	1,500		1,500		1,500
Average recorded investment without related allowance	1,457	1,435	1,455	1,433
Interest income recognized without related allowance	30	29	57	58
Commercial | Commercial and industrial | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	2,931		2,931		2,295
Recorded investment with related allowance	2,191		2,191		1,944
Unpaid principal balance without related allowance	3,171		3,171		2,510
Unpaid principal balance with related allowance	2,246		2,246		1,972
Specific Allowance for Impaired Loans	185		185		156
Average recorded investment without related allowance	2,913	3,993	2,750	3,680
Average recorded investment with related allowance	2,257	980	2,110	967
Interest income recognized without related allowance	38	12	82	34
Interest income recognized with related allowance	24	16	53	29
Commercial | Commercial and industrial | PCI loans
Investment in impaired loans
Recorded investment without related allowance	127		127		297
Recorded investment with related allowance	416		416		486
Unpaid principal balance without related allowance	429		429		712
Unpaid principal balance with related allowance	417		417		499
Specific Allowance for Impaired Loans	32		32		33
Average recorded investment without related allowance	185	552	231	602
Average recorded investment with related allowance	428	661	439	671
Interest income recognized without related allowance	26	30	45	60
Interest income recognized with related allowance	7	11	14	22
Consumer | Non-PCI Loans
Investment in impaired loans
Recorded investment without related allowance	226		226		146
Unpaid principal balance without related allowance	242		242		$ 204
Average recorded investment without related allowance	184	160	172	144
Interest income recognized without related allowance	$ 2	$ 1	$ 3	$ 3

Loans and Allowance for Loan 45

Loans and Allowance for Loan and Lease Losses - TDRs (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)loan	Jun. 30, 2015USD ($)item	Jun. 30, 2016USD ($)loanitem	Jun. 30, 2015USD ($)item	Dec. 31, 2015USD ($)
Troubled debt restructurings
Allowance for credit losses of receivables, identified as TDRs under the newly adopted provisions	$ 300		$ 300
Accruing loans that were classified as TDRs	10,030		10,030		$ 10,056
Non-Accruing loans that were classified as TDRs	6,031		6,031		6,203
Total loans classified as TDRs	$ 16,061		$ 16,061		16,259
Number of TDRs	5	14	14	25
Pre-Modification Outstanding Recorded Investment	$ 183	$ 3,412	$ 1,538	$ 5,652
Post-Modification Outstanding Recorded Investment	$ 183	$ 3,412	$ 1,538	$ 5,652
Minimum
Troubled debt restructurings
Period of maturity date extensions granted	6 years		6 years
Maximum
Troubled debt restructurings
Period of maturity date extensions granted	10 years		10 years
Non-PCI Loans
Troubled debt restructurings
Accruing loans that were classified as TDRs	$ 8,644		$ 8,644		8,619
Non-Accruing loans that were classified as TDRs	5,962		5,962		6,091
Total loans classified as TDRs	14,606		$ 14,606		14,710
Number of TDRs | item		9		20
Pre-Modification Outstanding Recorded Investment		$ 2,717		$ 4,957
Post-Modification Outstanding Recorded Investment		$ 2,717		$ 4,957
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	2,480		2,480		2,395
Non-Accruing loans that were classified as TDRs	123		123		435
Total loans classified as TDRs	2,603		2,603		2,830
Number of TDRs | item		1		4
Pre-Modification Outstanding Recorded Investment		$ 106		$ 670
Post-Modification Outstanding Recorded Investment		$ 106		$ 670
Non-PCI Loans | Real Estate Secured | Land
Troubled debt restructurings
Number of TDRs | item		1		1
Pre-Modification Outstanding Recorded Investment		$ 97		$ 97
Post-Modification Outstanding Recorded Investment		$ 97		$ 97
Non-PCI Loans | Real Estate Secured | Construction and land
Troubled debt restructurings
Accruing loans that were classified as TDRs	791		791		1,171
Non-Accruing loans that were classified as TDRs	3,836		3,836		3,968
Total loans classified as TDRs	4,627		4,627		5,139
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family
Troubled debt restructurings
Accruing loans that were classified as TDRs	274		274		613
Non-Accruing loans that were classified as TDRs					81
Total loans classified as TDRs	274		274		694
Number of TDRs | item		1		3
Pre-Modification Outstanding Recorded Investment		$ 90		$ 624
Post-Modification Outstanding Recorded Investment		$ 90		$ 624
Non-PCI Loans | Real Estate Secured | Farmland
Troubled debt restructurings
Accruing loans that were classified as TDRs	324		324		504
Non-Accruing loans that were classified as TDRs	77		77		82
Total loans classified as TDRs	401		$ 401		586
Number of TDRs | item		1		1
Pre-Modification Outstanding Recorded Investment		$ 498		$ 498
Post-Modification Outstanding Recorded Investment		$ 498		$ 498
Troubled Debt Restructurings That Subsequently Defaulted
Number of TDRs | item			1
Recorded Investment			$ 80
Non-PCI Loans | Commercial | Commercial and industrial
Troubled debt restructurings
Accruing loans that were classified as TDRs	3,297		3,297		2,698
Non-Accruing loans that were classified as TDRs	1,554		1,554		1,515
Total loans classified as TDRs	$ 4,851		$ 4,851		4,213
Number of TDRs	5	5	13	9
Pre-Modification Outstanding Recorded Investment	$ 183	$ 1,926	$ 1,528	$ 2,113
Post-Modification Outstanding Recorded Investment	183	$ 1,926	1,528	$ 2,113
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	1,369		1,369		1,124
Non-Accruing loans that were classified as TDRs	363		363
Total loans classified as TDRs	1,732		$ 1,732		1,124
Number of TDRs			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	109		109		114
Non-Accruing loans that were classified as TDRs	9		9		10
Total loans classified as TDRs	118		118		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	1,386		1,386		1,437
Non-Accruing loans that were classified as TDRs	69		69		112
Total loans classified as TDRs	1,455		1,455		1,549
Number of TDRs | item		5		5
Pre-Modification Outstanding Recorded Investment		$ 695		$ 695
Post-Modification Outstanding Recorded Investment		$ 695		$ 695
PCI loans | Real Estate Secured | Commercial real estate
Troubled debt restructurings
Accruing loans that were classified as TDRs	910		910		922
Non-Accruing loans that were classified as TDRs	31		31		46
Total loans classified as TDRs	941		941		968
Number of TDRs | item		4		4
Pre-Modification Outstanding Recorded Investment		$ 645		$ 645
Post-Modification Outstanding Recorded Investment		$ 645		$ 645
PCI loans | Real Estate Secured | Land
Troubled debt restructurings
Number of TDRs | item		1		1
Pre-Modification Outstanding Recorded Investment		$ 50		$ 50
Post-Modification Outstanding Recorded Investment		$ 50		$ 50
PCI loans | Real Estate Secured | Construction and land
Troubled debt restructurings
Accruing loans that were classified as TDRs	59		59		54
Total loans classified as TDRs	59		59		54
PCI loans | Commercial | Commercial and industrial
Troubled debt restructurings
Accruing loans that were classified as TDRs	417		417		461
Non-Accruing loans that were classified as TDRs	38		38		66
Total loans classified as TDRs	$ 455		$ 455		$ 527

Loans and Allowance for Loan 46

Loans and Allowance for Loan and Lease Losses - ALLL Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended	18 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Jun. 30, 2016
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	$ 17,565	$ 16,913	$ 17,452	$ 16,802	$ 16,802	$ 16,802
Charge-offs	(6)	(164)	(16)	(237)
Recoveries	889	233	1,012	417
(Reversal of) provision for loan and lease losses	(1,000)		(1,000)
Balance, at the end of the period	17,448	16,982	17,448	16,982	17,452	17,448
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment	309		309		254	309
Allowance for loan and lease losses collectively evaluated for impairment	17,062		17,062		17,119	17,062
Recorded investment in loan individually evaluated for impairment	15,389		15,389		16,303	15,389
Recorded investment in loan collectively evaluated for impairment	1,310,313		1,310,313		1,222,202	1,310,313
Total gross loans held for investment	1,333,719		1,333,719		1,247,280	1,333,719
Reserve for off-balance sheet commitments						500
Receivables Acquired with Deteriorated Credit Quality
Amount of allowance attributed to:
Allowance for Loans acquired with deteriorated credit quality	77		77		79	77
Recorded investment in loans acquired with deteriorated credit quality	8,017		8,017		8,775	8,017
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	17,371		17,371		17,373	17,371
Amount of allowance attributed to:
Total gross loans held for investment	1,325,702		1,325,702		1,238,505	1,325,702
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	77		77		79	77
Amount of allowance attributed to:
Total gross loans held for investment	8,017		8,017		8,775	8,017
Allowance for losses on acquired loans and leases			100		100
MISN | Non-PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment	145,900		145,900		163,800	145,900
Allowance for losses on acquired loans and leases			200		200
MISN | Non-PCI & PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment	153,900		153,900			153,900
Commercial
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	5,592	4,495	5,372	5,125	5,125	5,125
Charge-offs	(4)	(143)	(12)	(143)
Recoveries	129	142	230	309
(Reversal of) provision for loan and lease losses	(108)	499	19	(298)
Balance, at the end of the period	5,609	4,993	5,609	4,993	5,372	5,609
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment	273		273		195	273
Allowance for loan and lease losses collectively evaluated for impairment	5,304		5,304		5,144	5,304
Recorded investment in loan individually evaluated for impairment	6,854		6,854		5,363	6,854
Recorded investment in loan collectively evaluated for impairment	235,849		235,849		221,573	235,849
Total gross loans held for investment	244,706		244,706		229,171	244,706
Commercial | Receivables Acquired with Deteriorated Credit Quality
Amount of allowance attributed to:
Allowance for Loans acquired with deteriorated credit quality	32		32		33	32
Recorded investment in loans acquired with deteriorated credit quality	2,003		2,003		2,235	2,003
Commercial | Non-PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment	242,703		242,703		226,936	242,703
Commercial | PCI loans
Amount of allowance attributed to:
Total gross loans held for investment	2,003		2,003		2,235	2,003
Construction and land
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	558	2,044	623	2,000	2,000	2,000
Charge-offs				(34)
Recoveries	131	13	144	24
(Reversal of) provision for loan and lease losses	(198)	(117)	(276)	(50)
Balance, at the end of the period	491	1,940	491	1,940	623	491
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment	486		486		618	486
Recorded investment in loan individually evaluated for impairment	4,838		4,838		5,138	4,838
Recorded investment in loan collectively evaluated for impairment	31,656		31,656		30,249	31,656
Construction and land | Receivables Acquired with Deteriorated Credit Quality
Amount of allowance attributed to:
Allowance for Loans acquired with deteriorated credit quality	5		5		5	5
Recorded investment in loans acquired with deteriorated credit quality	259		259		282	259
Consumer
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	159	190	173	202	202	202
Charge-offs	(2)	(5)	(4)	(5)
Recoveries	8	5	12	8
(Reversal of) provision for loan and lease losses	17	(19)	1	(34)
Balance, at the end of the period	182	171	182	171	173	182
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment	182		182		173	182
Recorded investment in loan individually evaluated for impairment	226		226		146	226
Recorded investment in loan collectively evaluated for impairment	4,718		4,718		5,887	4,718
Total gross loans held for investment	4,944		4,944		6,033	4,944
Consumer | Non-PCI Loans
Amount of allowance attributed to:
Total gross loans held for investment	4,944		4,944		6,033	4,944
Unallocated
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	425	810	123	346	346	346
(Reversal of) provision for loan and lease losses	87	(567)	389	(103)
Balance, at the end of the period	512	243	512	243	123	512
Amount of allowance attributed to:
Allowance for loan and lease losses collectively evaluated for impairment	512		512		123	512
Other real estate secured
Allocation of the allowance to various segments in the loan portfolio
Balance, at the beginning of the period	10,831	9,374	11,161	9,129	9,129	9,129
Charge-offs		(16)		(55)
Recoveries	621	73	626	76
(Reversal of) provision for loan and lease losses	(798)	204	(1,133)	485
Balance, at the end of the period	10,654	$ 9,635	10,654	$ 9,635	11,161	10,654
Amount of allowance attributed to:
Allowance for loan and lease losses individually evaluated for impairment	36		36		59	36
Allowance for loan and lease losses collectively evaluated for impairment	10,578		10,578		11,061	10,578
Recorded investment in loan individually evaluated for impairment	3,471		3,471		5,656	3,471
Recorded investment in loan collectively evaluated for impairment	1,038,090		1,038,090		964,493	1,038,090
Other real estate secured | Receivables Acquired with Deteriorated Credit Quality
Amount of allowance attributed to:
Allowance for Loans acquired with deteriorated credit quality	40		40		41	40
Recorded investment in loans acquired with deteriorated credit quality	$ 5,755		$ 5,755		$ 6,258	$ 5,755

Loans and Allowance for Loan 47

Loans and Allowance for Loan and Lease Losses - Credit Quality (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Non-PCI loans by the internal risk grading system
Total Gross loans	$ 1,333,719	$ 1,247,280
Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	1,283,012	1,190,282
Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	8,724	12,048
Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	41,983	44,950
Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	1,084,069	1,012,076
Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	618,400	579,244
Real Estate Secured | Residential 1 to 4 family
Non-PCI loans by the internal risk grading system
Total Gross loans	184,097	165,829
Real Estate Secured | Farmland
Non-PCI loans by the internal risk grading system
Total Gross loans	131,574	120,566
Real Estate Secured | Multi-family residential
Non-PCI loans by the internal risk grading system
Total Gross loans	85,254	79,381
Real Estate Secured | Construction and land
Non-PCI loans by the internal risk grading system
Total Gross loans	36,753	35,669
Real Estate Secured | Home equity lines of credit
Non-PCI loans by the internal risk grading system
Total Gross loans	27,991	31,387
Commercial
Non-PCI loans by the internal risk grading system
Total Gross loans	244,706	229,171
Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	182,645	164,808
Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	62,061	64,363
Consumer
Non-PCI loans by the internal risk grading system
Total Gross loans	4,944	6,033
Non-PCI Loans
Non-PCI loans by the internal risk grading system
Total Gross loans	1,325,702	1,238,505
Non-PCI Loans | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	1,282,544	1,189,524
Non-PCI Loans | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	6,358	10,819
Non-PCI Loans | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	36,800	38,162
Non-PCI Loans | Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	1,078,055	1,005,536
Non-PCI Loans | Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	612,766	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	593,942	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	4,007	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	14,817	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	183,976	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	183,370	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	501	625
Non-PCI Loans | Real Estate Secured | Farmland
Non-PCI loans by the internal risk grading system
Total Gross loans	131,574	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	129,820	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	470	245
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	1,284	1,581
Non-PCI Loans | Real Estate Secured | Multi-family residential
Non-PCI loans by the internal risk grading system
Total Gross loans	85,254	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	85,254	79,381
Non-PCI Loans | Real Estate Secured | Construction and land
Non-PCI loans by the internal risk grading system
Total Gross loans	36,494	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	32,309	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		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	4,185	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	27,991	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	27,774	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	217	284
Non-PCI Loans | Commercial
Non-PCI loans by the internal risk grading system
Total Gross loans	242,703	226,936
Non-PCI Loans | Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	182,102	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	171,385	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	702	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	10,015	6,316
Non-PCI Loans | Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	60,601	62,911
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	53,941	61,340
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	1,062	98
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	5,598	1,473
Non-PCI Loans | Consumer
Non-PCI loans by the internal risk grading system
Total Gross loans	4,944	6,033
Non-PCI Loans | Consumer | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	4,749	5,922
Non-PCI Loans | Consumer | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	12
Non-PCI Loans | Consumer | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	183	111
PCI loans
Non-PCI loans by the internal risk grading system
Total Gross loans	8,017	8,775
PCI loans | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	468	758
PCI loans | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	2,366	1,229
PCI loans | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	5,183	6,788
PCI loans | Real Estate Secured
Non-PCI loans by the internal risk grading system
Total Gross loans	6,014	6,540
PCI loans | Real Estate Secured | Commercial real estate
Non-PCI loans by the internal risk grading system
Total Gross loans	5,634	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	152
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	2,234	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	3,248	4,591
PCI loans | Real Estate Secured | Residential 1 to 4 family
Non-PCI loans by the internal risk grading system
Total Gross loans	121	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		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	121
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	259	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	259	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	2,003	2,235
PCI loans | Commercial | Commercial and industrial
Non-PCI loans by the internal risk grading system
Total Gross loans	543	783
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass
Non-PCI loans by the internal risk grading system
Total Gross loans	57	75
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention
Non-PCI loans by the internal risk grading system
Total Gross loans	11	81
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	475	627
PCI loans | Commercial | Agriculture
Non-PCI loans by the internal risk grading system
Total Gross loans	1,460	1,452
PCI loans | Commercial | Agriculture | Credit Risk Grades, Substandard
Non-PCI loans by the internal risk grading system
Total Gross loans	$ 1,460	$ 1,452

Loans and Allowance for Loan 48

Loans and Allowance for Loan and Lease Losses - Aging (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Aging of loans held for investment
Current	$ 1,326,424	$ 1,239,201
Past due	1,333,719	1,247,280
Non-Accruing	6,817	7,818
Total	1,333,719	1,247,280
Real Estate Secured
Aging of loans held for investment
Total	1,084,069	1,012,076
Real Estate Secured | Commercial real estate
Aging of loans held for investment
Total	618,400	579,244
Real Estate Secured | Residential 1 to 4 family
Aging of loans held for investment
Total	184,097	165,829
Real Estate Secured | Farmland
Aging of loans held for investment
Total	131,574	120,566
Real Estate Secured | Multi-family residential
Aging of loans held for investment
Total	85,254	79,381
Real Estate Secured | Construction and land
Aging of loans held for investment
Total	36,753	35,669
Real Estate Secured | Home equity lines of credit
Aging of loans held for investment
Total	27,991	31,387
Commercial
Aging of loans held for investment
Total	244,706	229,171
Commercial | Commercial and industrial
Aging of loans held for investment
Total	182,645	164,808
Commercial | Agriculture
Aging of loans held for investment
Total	62,061	64,363
Consumer
Aging of loans held for investment
Total	4,944	6,033
Non-PCI Loans
Aging of loans held for investment
Current	1,318,478	1,230,561
Past due	1,325,702	1,238,505
Non-Accruing	6,746	7,683
Total	1,325,702	1,238,505
Non-PCI Loans | Real Estate Secured
Aging of loans held for investment
Total	1,078,055	1,005,536
Non-PCI Loans | Real Estate Secured | Commercial real estate
Aging of loans held for investment
Current	612,533	571,665
Past due		573,559
Non-Accruing	233	1,894
Total	612,766	573,559
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family
Aging of loans held for investment
Current	183,976	165,176
Past due		165,256
Non-Accruing		80
Total	183,976	165,256
Non-PCI Loans | Real Estate Secured | Farmland
Aging of loans held for investment
Current	131,497	120,483
Past due		120,566
Non-Accruing	77	83
Total	131,574	120,566
Non-PCI Loans | Real Estate Secured | Multi-family residential
Aging of loans held for investment
Current	85,254	79,381
Past due		79,381
Total	85,254	79,381
Non-PCI Loans | Real Estate Secured | Construction and land
Aging of loans held for investment
Current	32,448	31,419
Past due		35,387
Non-Accruing	4,046	3,968
Total	36,494	35,387
Non-PCI Loans | Real Estate Secured | Home equity lines of credit
Aging of loans held for investment
Current	27,907	31,303
Past due		31,387
Non-Accruing	84	84
Total	27,991	31,387
Non-PCI Loans | Commercial
Aging of loans held for investment
Total	242,703	226,936
Non-PCI Loans | Commercial | Commercial and industrial
Aging of loans held for investment
Current	180,276	162,223
Past due		164,025
Non-Accruing	1,826	1,541
Total	182,102	164,025
Non-PCI Loans | Commercial | Agriculture
Aging of loans held for investment
Current	59,760	62,911
Past due		62,911
Non-Accruing	363
Total	60,601	62,911
Non-PCI Loans | Consumer
Aging of loans held for investment
Current	4,827	6,000
Past due		6,033
Non-Accruing	117	33
Total	4,944	6,033
Non-PCI Loans | MISN
Aging of loans held for investment
Total	145,900	163,800
PCI loans
Aging of loans held for investment
Current	7,946	8,640
Past due		8,775
Non-Accruing	71	135
Total	8,017	8,775
PCI loans | Real Estate Secured
Aging of loans held for investment
Total	6,014	6,540
PCI loans | Real Estate Secured | Commercial real estate
Aging of loans held for investment
Current	5,603	5,639
Past due		5,685
Non-Accruing	31	46
Total	5,634	5,685
PCI loans | Real Estate Secured | Residential 1 to 4 family
Aging of loans held for investment
Current	121	282
Past due		282
Total	121	573
PCI loans | Real Estate Secured | Construction and land
Aging of loans held for investment
Current	259	573
Past due		573
Total	259	282
PCI loans | Commercial
Aging of loans held for investment
Total	2,003	2,235
PCI loans | Commercial | Commercial and industrial
Aging of loans held for investment
Current	503	694
Past due		783
Non-Accruing	40	89
Total	543	783
PCI loans | Commercial | Agriculture
Aging of loans held for investment
Current	1,460	1,452
Past due		1,452
Total	1,460	1,452
Current
Aging of loans held for investment
Non-Accruing	6,100	6,400
30 to 59 Days Past Due
Aging of loans held for investment
Past due	97	66
Non-Accruing	100	28,000
30 to 59 Days Past Due | Non-PCI Loans
Aging of loans held for investment
Past due	97	66
30 to 59 Days Past Due | Non-PCI Loans | Commercial | Commercial and industrial
Aging of loans held for investment
Past due		66
30 to 59 Days Past Due | Non-PCI Loans | Commercial | Agriculture
Aging of loans held for investment
Past due	97
60 to 89 Days Past Due
Aging of loans held for investment
Past due	381	195
Non-Accruing	100	26,000
60 to 89 Days Past Due | Non-PCI Loans
Aging of loans held for investment
Past due	381	195
60 to 89 Days Past Due | Non-PCI Loans | Commercial | Commercial and industrial
Aging of loans held for investment
Past due		195
60 to 89 Days Past Due | Non-PCI Loans | Commercial | Agriculture
Aging of loans held for investment
Past due	381
90+ Days Past Due
Aging of loans held for investment
Non-Accruing	$ 500	$ 1,400

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Income Taxes
Deferred tax valuation allowance	$ 0	$ 0
Deferred tax assets	15,321	$ 21,272
Loss of NOL utilization	$ 0

Goodwill and Other Intangible50

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Core deposit intangible
Goodwill	$ 24,885		$ 24,885		$ 24,885
Other intangible assets	3,812		3,812		4,298
Amortization of Intangible Assets	243	$ 262	486	$ 524
Gross Carrying Amount	9,261		9,261
Accumulated Amortization	(5,449)		(5,449)
Net Carrying Amount	3,812		3,812
Estimated Amortization
Year 2,016	(458)		(458)
Year 2,017	(588)		(588)
Year 2,018	(549)		(549)
Year 2,019	(522)		(522)
Year 2,020	(441)		(441)
Year 2,021	(419)		(419)
Year 2,016
Core deposit intangible
Net Carrying Amount	3,354		3,354		3,812
Year 2,017
Core deposit intangible
Net Carrying Amount	2,766		2,766		3,354
Year 2,018
Core deposit intangible
Net Carrying Amount	2,217		2,217		2,766
Year 2,019
Core deposit intangible
Net Carrying Amount	1,695		1,695		2,217
Year 2,020
Core deposit intangible
Net Carrying Amount	1,254		1,254		1,695
Year 2,021
Core deposit intangible
Net Carrying Amount	$ 835		$ 835		$ 1,254

Share-based Compensation Plan51

Share-based Compensation Plans - Number of Plans (Details)	6 Months Ended
	Jun. 30, 2016planshares
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
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
Maximum number of shares that may be issued	2,500,000
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

Share-based Compensation Plan52

Share-based Compensation Plans - Restricted Stock Awards (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Restricted stock
Number of Shares
Balance at the beginning of the period (in shares)	162,394
Granted (in shares)	86,086
Vested (in shares)	(32,276)
Forfeited (in shares)	(15,265)
Balance at the end of the period (in shares)	200,939
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	7.77
Vested (in dollars per share) | $ / shares	6.88
Forfeited (in dollars per share) | $ / shares	7.75
Balance at the end of the period (in dollars per share) | $ / shares	$ 7.53
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

Share-based Compensation Plan53

Share-based Compensation Plans - Restricted Stock Units (Details) - Restricted stock units	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Settle in Stock, Shares
Granted (in shares) | shares	38,104
Balance at the end of the period (in shares) | shares	38,104
Settle in Stock, Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares	$ 7.56
Balance at the end of the period (in dollars per share) | $ / shares	$ 7.56
Settle in Cash, Shares
Granted (in shares) | shares	77,968
Balance at the end of the period (in shares) | shares	77,968
Settle in Cash, Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares	$ 7.94
Balance at the end of the period (in dollars per share) | $ / shares	$ 7.94
Minimum
Summary of the expenses the Company has recognized related to share-based compensation
Vesting percentage of units settled in shares	0.00%
Maximum
Summary of the expenses the Company has recognized related to share-based compensation
Vesting percentage of units settled in shares	150.00%

Share-based Compensation Plan54

Share-based Compensation Plans - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Aggregate intrinsic value of options exercised
Income tax benefit recognized related to share-based compensation	$ 108	$ 69
Stock options
Number of shares
Options outstanding, at the beginning of the period (in shares)	932,553
Granted (in shares)	36,022
Forfeited (in shares)	(28,490)
Exercised (in shares)	(7,877)
Options outstanding, at the end of the period (in shares)	932,208
Exercisable, at the end of the period (in shares)	443,434
Vested and expected to vest , at the end of the period (in shares)	898,496
Weighted Average Exercise Price
Options outstanding, at the beginning of the period (in dollars per share)	$ 7.19
Granted (in dollars per share)	7.27
Forfeited (in dollars per share)	7.47
Exercised (in dollars per share)	6.15
Options outstanding, at the end of the period (in dollars per share)	7.20
Exercisable, at the end of the period (in dollars per share)	7
Vested and expected to vest , at the end of the period (in dollars per share)	$ 7.19
Average Remaining Life (years)
Outstanding, at end of period	7 years 3 months 22 days
Exercisable, at the end of the period	5 years 11 months 12 days
Vested and expected to vest, at the end of the period	7 years 3 months 4 days
Average Intrinsic Value
Outstanding, at the end of the period	$ 1,019,659
Exercisable, at the end of the period	729,326
Vested and expected to vest, at the end of the period	1,003,426
Aggregate intrinsic value of options exercised
Total intrinsic value of options exercised	12
Income tax benefit recognized related to share-based compensation	$ 108
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

Share-based Compensation Plan55

Share-based Compensation Plans - Assumptions (Details) - Stock options - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Assumptions used in the calculation of the weighted average fair value of options granted
Expected volatility (as a percent)	31.85%	38.04%
Expected term	5 years	5 years
Dividend yield (as a percent)	3.30%	2.58%
Risk free rate (as a percent)	1.31%	1.57%
Weighted-average grant date fair value (in dollars per share)	$ 1.50	$ 2.15

Share-based Compensation Plan56

Share-based Compensation Plans - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Summary of the expenses the Company has recognized related to share-based compensation
Allocated Share-based Compensation Expense	$ 362	$ 294	$ 569	$ 535
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	2,289	2,008	2,289	2,008
Income tax benefit recognized related to share-based compensation			108	69
Stock options
Summary of the expenses the Company has recognized related to share-based compensation
Allocated Share-based Compensation Expense	103	136	226	248
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	766	1,109	766	1,109
Income tax benefit recognized related to share-based compensation			$ 108
Weighted-average period over which expense is expected to be recognized			2 years 4 months 24 days
Restricted stock
Summary of the expenses the Company has recognized related to share-based compensation
Allocated Share-based Compensation Expense	199	158	$ 283	287
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	925	$ 899	$ 925	$ 899
Weighted-average period over which expense is expected to be recognized			2 years 2 months 12 days
Restricted stock units
Summary of the expenses the Company has recognized related to share-based compensation
Allocated Share-based Compensation Expense	60		$ 60
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 598		$ 598
Weighted-average period over which expense is expected to be recognized			2 years 9 months 18 days

Shareholders' Equity - Preferre

Shareholders' Equity - Preferred Stock, Cash Dividends and Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 27, 2016	May 31, 2016	Feb. 29, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jul. 22, 2016	Jan. 06, 2016
Stock line items
Cash dividend paid on common stock (in dollars per share)		$ 0.06	$ 0.06
Cash dividend declared (in dollars per share)				$ 0.06	$ 0.06	$ 0.12	$ 0.11
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		$ 7.28
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
Subsequent Event | Maximum
Stock line items
Repurchase of shares, dollar amount authorized									$ 5

Shareholders' Equity - Regulato

Shareholders' Equity - Regulatory Capital (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
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 to risk-weighted assets:
2019 Minimum Common Equity Tier I Capital Ratio (as a percent)	7.00%
Phased-out rate of certain deferred tax assets and intangible assets	60.00%	40.00%
Tier I capital to average assets
2019 Minimum Leverage Ratio (as a percent)	6.50%
Tier I Risk-Based Capital
2019 Minimum Tier I Risk-based Capital Ratio (as a percent)	8.50%
Total Risk-Based Capital Ratio
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
Company's and the Bank's actual regulatory capital amounts and ratios
Regulatory standard to be adequately capitalized (as a percent)	8.625%
Common Equity Tier I capital to risk-weighted assets:
Actual Common Equity Tier I (as a percent)	11.91%	12.48%
Regulatory standard to be adequately capitalized (as a percent)	5.125%
Regulatory standard to be well capitalized (as a percent)	6.50%
Tier I capital to average assets
Regulatory standard to be adequately capitalized (as a percent)	4.00%
Regulatory standard to be well capitalized (as a percent)	5.00%
Actual Leverage ratio (as a percent)	9.20%	9.50%
Tier I Risk-Based Capital
Regulatory standard to be adequately capitalized (as a percent)	6.625%
Regulatory standard to be well capitalized (as a percent)	8.00%
Actual Tier I capital (as a percent)	11.91%	12.48%
Total Risk-Based Capital Ratio
Regulatory standard to be adequately capitalized (as a percent)	8.625%
Actual total risk based capital (as a percent)	13.13%	13.74%
Regulatory standard to be well capitalized (as a percent)	10.00%
Heritage Oaks Bancorp
Company's and the Bank's actual regulatory capital amounts and ratios
Regulatory standard to be adequately capitalized (as a percent)	8.625%
Common Equity Tier I capital to risk-weighted assets:
Actual Common Equity Tier I (as a percent)	12.16%	12.61%
Regulatory standard to be adequately capitalized (as a percent)	5.125%
Tier I capital to average assets
Regulatory standard to be adequately capitalized (as a percent)	4.00%
Actual Leverage ratio (as a percent)	9.80%	9.90%
Tier I Risk-Based Capital
Regulatory standard to be adequately capitalized (as a percent)	6.625%
Actual Tier I capital (as a percent)	12.69%	13.01%
Total Risk-Based Capital Ratio
Regulatory standard to be adequately capitalized (as a percent)	8.625%
Actual total risk based capital (as a percent)	13.91%	14.26%
Junior subordinated debentures
Tier I Risk-Based Capital
Actual, Capital Amount	$ 10.1	$ 10

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Calculation of both basic and diluted earnings (loss) per common share
Net income	$ 4,215	$ 3,800	$ 8,200	$ 7,869
Accretion on preferred stock		(70)		(70)
Net income allocated to participating securities	(25)	(21)	(43)	(45)
Net income allocated to common shareholders	$ 4,190	$ 3,709	$ 8,157	$ 7,754
Weighted average shares outstanding	33,998,644	34,105,192	34,047,511	34,086,786
Basic earnings per common share (in dollars per share)	$ 0.12	$ 0.11	$ 0.24	$ 0.23
Dilutive effect of share-based compensation awards (in shares)	142,342	144,399	129,076	150,109
Weighted average diluted shares outstanding	34,140,986	34,249,591	34,176,587	34,236,895
Diluted earnings per common share (in dollars per share)	$ 0.12	$ 0.11	$ 0.24	$ 0.23
Stock options
Shares excluded from the calculation of diluted earnings per share
Shares excluded from the calculation of diluted earnings per share	65,000	88,000	99,000	408,000

Commitments and Contingencies -

Commitments and Contingencies - Total Commitments (Details) - Heritage Oaks Bank - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Commitments and Contingencies
Total commitments and standby letters of credit	$ 277,466	$ 255,093
Outstanding financial fixed rate commitments	26,800
Outstanding financial variable rate commitments	250,700
Commitments to extend credit
Commitments and Contingencies
Total commitments and standby letters of credit	265,074	242,125
Standby letters of credit
Commitments and Contingencies
Total commitments and standby letters of credit	12,392	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	Jun. 30, 2016USD ($)
Derivatives
Derivative assets, notional amount	$ 22,191
Derivative assets, fair value	1,503
Derivative liability, notional amount	22,191
Derivative liability, fair value	1,503
Interest rate swaps
Derivatives
Notional amount of derivative	22,200
Fair value of derivative	1,500
Interest rate swaps | Pay Floating Receive Fixed Contract
Derivatives
Derivative assets, notional amount	22,191
Derivative assets, fair value	1,503
Interest rate swaps | Pay Fixed Receive Floating Contract
Derivatives
Derivative liability, notional amount	22,191
Derivative liability, fair value	$ 1,503

Balance Sheet Offsetting (Detai

Balance Sheet Offsetting (Details) $ in Thousands	Jun. 30, 2016USD ($)
Derivatives
Gross amounts recognized in Consolidated Balance Sheets (asset)	$ 1,503
Gross amounts recognized in Consolidated Balance Sheets (liability)	1,503
Net amount presented in the Consolidated Balance Sheets (liability)	1,503
Gross cash collateral not offset in Consolidated Balance Sheets (liability)	1,600
Net amount not offset in Consolidated Balance Sheets	(97)
Not Designated as Hedging Instrument
Derivatives
Gross amounts recognized in Consolidated Balance Sheets (liability)	1,503
Net amount presented in the Consolidated Balance Sheets (liability)	1,503
Gross cash collateral not offset in Consolidated Balance Sheets (liability)	1,600
Net amount not offset in Consolidated Balance Sheets	(97)
Interest rate swaps | Pay Floating Receive Fixed Contract
Derivatives
Gross amounts recognized in Consolidated Balance Sheets (asset)	1,503
Interest rate swaps | Pay Fixed Receive Floating Contract
Derivatives
Gross amounts recognized in Consolidated Balance Sheets (liability)	$ 1,503

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 27, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jul. 22, 2016	Jan. 06, 2016
Subsequent events
Cash dividend declared (in dollars per share)		$ 0.06	$ 0.06	$ 0.12	$ 0.11
Subsequent Event
Subsequent events
Cash dividend declared (in dollars per share)	$ 0.06
Maximum
Subsequent events
Repurchase of shares, dollar amount authorized							$ 5
Maximum | Subsequent Event
Subsequent events
Repurchase of shares, dollar amount authorized						$ 5