Fair Value (Tables)

9 Months Ended

Sep. 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:


	September 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	$	9,266	$	—	$	9,266	$	—
Municipal securities		151,802		—		151,802		—
Single issue trust preferred securities		45,939		—		45,939		—
Corporate securities		4,933		—		4,933		—
Agency MBS		318,265		—		318,265		—
Non-Agency Alt-A residential MBS		10,023		—		10,023		—
Equity securities		5,448		449		4,999		—

Total available-for-sale securities	$	545,676	$	449	$	545,227	$	—

Deferred compensation assets	$	3,990	$	3,990	$	—	$	—

Derivatives
Interest rate lock commitments	$	19	$	—	$	19	$	—

Deferred compensation liabilities	$	3,990	$	3,990	$	—	$	—

Derivative liabilities
Interest rate lock commitments	$	19	$	—	$	19	$	—


	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.


	September 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	$	6,315		—		—	$	6,315
OREO not covered by loss share agreements		4,740		—		—		4,740
OREO covered by loss share agreements		6,672		—		—		6,672

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		Valuation	Unobservable	Range
	September 30, 2013		Technique	Input	(Weighted Average)
(Amounts in thousands)
Impaired loans	$	6,315	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	1% to 100% (18%)
OREO not covered by loss share agreements		4,740	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	0% to 88% (34%)
OREO covered by loss share agreements		6,672	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	0% to 63% (37%)

(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:


	September 30, 2013
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	92,575	$	92,575	$	92,575	$	—	$	—
Available-for-sale securities		545,676		545,676		5,430		540,246		—
Held-to-maturity securities		567		572		—		572		—
Loans held for sale		825		857		—		857		—
Loans held for investment less allowance		1,672,032		1,651,746		—		—		1,651,746
FDIC indemnification asset		37,102		37,102		—		—		37,102
Accrued interest receivable		7,336		7,336		—		7,336		—
Derivative financial assets		19		19		—		19		—
Deferred compensation assets		3,990		3,990		3,990		—		—
Liabilities
Demand deposits	$	353,951	$	353,951	$	—	$	353,951	$	—
Interest-bearing demand deposits		374,546		374,546		—		374,546		—
Savings deposits		527,887		527,887		—		527,887		—
Time deposits		740,181		744,486		—		744,486		—
Securities sold under agreements to repurchase		114,647		117,732		—		117,732		—
Accrued interest payable		2,215		2,215		—		2,215		—
FHLB and other indebtedness		165,839		179,559		—		179,559		—
Derivative financial liabilities		19		19		—		19		—
Deferred compensation liabilities		3,990		3,990		3,990		—		—


	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