Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Financial instruments that were measured at fair value on a recurring and nonrecurring basis

The following table summarizes the Company's financial instruments that were measured at fair value on a recurring and nonrecurring basis at September 30, 2014. The impaired loans shown below are those in which the value is based on the underlying collateral value.

($ in thousands)
Description of Financial Instruments	Fair Value at September 30, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	18,465		—		18,465		—
Mortgage-backed securities		133,769		—		133,769		—
Corporate bonds		890		—		890		—
Equity securities		6,130		—		6,130		—
Total available for sale securities	$	159,254		—		159,254		—

Nonrecurring
Impaired loans – covered	$	3,666		—		—		3,666
Impaired loans – non-covered		2,982		—		—		2,982
Foreclosed real estate – covered		3,237		—		—		3,237
Foreclosed real estate – non-covered		11,705		—		—		11,705

The following table summarizes the Company's financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2013.

($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	18,245		—		18,245		—
Mortgage-backed securities		147,187		—		147,187		—
Corporate bonds		3,598		—		3,598		—
Equity securities		4,011		—		4,011		—
Total available for sale securities	$	173,041		—		173,041		—

Nonrecurring
Impaired loans – covered	$	15,284		—		—		15,284
Impaired loans – non-covered		13,020		—		—		13,020
Foreclosed real estate – covered		24,497		—		—		24,497
Foreclosed real estate – non-covered		12,251		—		—		12,251

Schedule of the carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2014 and December 31, 2013 are as follows:

		September 30, 2014				December 31, 2013
($ in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Cash and due from banks, noninterest-bearing	Level 1	$	84,128		84,128		83,881		83,881
Due from banks, interest-bearing	Level 1		251,111		251,111		136,644		136,644
Federal funds sold	Level 1		1,275		1,275		2,749		2,749
Securities available for sale	Level 2		159,254		159,254		173,041		173,041
Securities held to maturity	Level 2		53,821		57,601		53,995		56,700
Presold mortgages in process of settlement	Level 1		5,761		5,761		5,422		5,422
Total loans, net of allowance	Level 3		2,381,959		2,331,525		2,414,689		2,352,834
Accrued interest receivable	Level 1		8,885		8,885		9,649		9,649
FDIC indemnification asset	Level 3		25,328		24,452		48,622		47,032
Bank-owned life insurance	Level 1		44,996		44,996		44,040		44,040

Deposits	Level 2		2,679,012		2,679,281		2,751,019		2,752,375
Borrowings	Level 2		116,394		106,139		46,394		34,795
Accrued interest payable	Level 2		695		695		879		879

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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