Fair Value (Tables)

6 Months Ended

Jun. 30, 2013

Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy for the periods indicated:


	June 30, 2013
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Treasury securities	$	9,414	$	—	$	9,414	$	—
Municipal securities		151,981		—		151,981		—
Single issue trust preferred securities		46,182		—		46,182		—
Agency MBS		326,266		—		326,266		—
Non-Agency Alt-A residential MBS		10,884		—		10,884		—
Equity securities		5,431		5,413		18		—

Total available-for-sale securities	$	550,158	$	5,413	$	544,745	$	—

Deferred compensation assets	$	3,861	$	3,861	$	—	$	—

Derivatives
Interest rate lock commitments	$	17	$	—	$	17	$	—

Deferred compensation liabilities	$	3,861	$	3,861	$	—	$	—

Derivative liabilities
Interest rate lock commitments	$	163	$	—	$	163	$	—


	December 31, 2012
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities:
Municipal securities	$	159,217	$	—	$	159,217	$	—
Single issue trust preferred securities		44,646		—		44,646		—
Agency MBS		315,897		—		315,897		—
Non-Agency Alt-A residential MBS		11,067		—		11,067		—
Equity securities		3,531		3,511		20		—

Total available-for-sale securities	$	534,358	$	3,511	$	530,847	$	—

Deferred compensation assets	$	3,625	$	3,625	$	—	$	—

Derivatives
Interest rate lock commitments	$	144	$	—	$	144	$	—

Deferred compensation liabilities	$	3,625	$	3,625	$	—	$	—

Derivative liabilities
Interest rate lock commitments	$	16	$	—	$	16	$	—

Financial and Nonfinancial Assets Measured at Fair Value on Nonrecurring Basis

The following tables summarize financial and nonfinancial assets measured at fair value on a nonrecurring basis segregated by the level of the valuation inputs within the fair value hierarchy that were held for the periods indicated.


	June 30, 2013
	Total		Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
(Amounts in thousands)
Impaired loans not covered by loss share agreements	$	6,176		—		—	$	6,176
OREO not covered by loss share agreements		3,941		—		—		3,941
OREO covered by loss share agreements		4,423		—		—		4,423

Quantitative Information About Financial and Nonfinancial Assets Measured at Fair Value on Nonrecurring Basis

The following table presents quantitative information about financial and nonfinancial assets measured at fair value on a nonrecurring basis using Level 3 valuation inputs:


	Fair Value at June 30, 2013		Valuation Technique	Unobservable Input	Range (Weighted Average)
(Amounts in thousands)
Impaired loans	$	6,176	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	1% to 102% (18%)
OREO not covered by loss share agreements		3,941	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	0% to 75% (34%)
OREO covered by loss share agreements		4,423	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	1% to 70% (31%)

(1)	Fair value is generally based on appraisals of the underlying collateral.

(2)	Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.

Carrying Amount and Fair Value of Company's Financial Instruments

The following tables summarize the carrying amount and fair value of the Company’s financial instruments for the dates indicated:


	June 30, 2013
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	82,119	$	82,119	$	82,119	$	—	$	—
Available-for-sale securities		550,158		550,158		5,413		544,745		—
Held-to-maturity securities		627		639		—		639		—
Loans held for sale		4,621		4,640		—		4,640		—
Loans held for investment less allowance		1,668,376		1,658,347		—		—		1,658,347
FDIC indemnification asset		40,389		40,389		—		—		40,389
Accrued interest receivable		8,010		8,010		—		8,010		—
Derivative financial assets		17		17		—		17		—
Deferred compensation assets		3,861		3,861		3,861		—		—

Liabilities
Demand deposits	$	349,972	$	349,972	$	—	$	349,972	$	—
Interest-bearing demand deposits		354,862		354,862		—		354,862		—
Savings deposits		513,781		513,781		—		513,781		—
Time deposits		770,081		775,067		—		775,067		—
Securities sold under agreements to repurchase		121,204		124,427		—		124,427		—
Accrued interest payable		2,308		2,308		—		2,308		—
FHLB and other indebtedness		165,877		179,299		—		179,299		—
Derivative financial liabilities		163		163		—		163		—
Deferred compensation liabilities		3,861		3,861		3,861		—		—


	December 31, 2012
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	144,847	$	144,847	$	144,847	$	—	$	—
Available-for-sale securities		534,358		534,358		3,511		530,847		—
Held-to-maturity securities		816		832		—		832		—
Loans held for sale		6,672		6,774		—		6,774		—
Loans held for investment less allowance		1,698,883		1,702,128		—		—		1,702,128
FDIC receivable under loss share agreements		48,149		48,149		—		—		48,149
Accrued interest receivable		7,842		7,842		—		7,842		—
Derivative financial assets		144		144		—		144		—
Deferred compensation assets		3,625		3,625		3,625		—		—

Liabilities
Demand deposits	$	343,352	$	343,352	$	—	$	343,352	$	—
Interest-bearing demand deposits		353,321		353,321		—		353,321		—
Savings deposits		500,276		500,276		—		500,276		—
Time deposits		833,226		842,331		—		842,331		—
Securities sold under agreements to repurchase		136,118		142,417		—		142,417		—
Accrued interest payable		2,481		2,481		—		2,481		—
FHLB and other indebtedness		177,435		200,418		—		200,418		—
Derivative financial liabilities		16		16		—		16		—
Deferred compensation liabilities		3,625		3,625		3,625		—		—

- 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.

+ References+ Details