Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

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

The following tables summarize financial assets and liabilities recorded at fair value on a recurring basis, segregated by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	December 31, 2013
	Total Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Treasury securities	$	9,013	$	—	$	9,013	$	—
Municipal securities		144,280		—		144,280		—
Single issue trust preferred securities		46,234		—		46,234		—
Corporate securities		4,871		—		4,871		—
Agency MBS		300,386		—		300,386		—
Non-Agency Alt-A residential MBS		9,789		—		9,789		—
Equity securities		5,247		251		4,996		—

Total available-for-sale securities	$	519,820	$	251	$	519,569	$	—

Deferred compensation assets	$	4,200	$	4,200	$	—	$	—

Derivatives
Interest rate swaps	$	43	$	—	$	43	$	—
Forward sale loan commitments		41		—		41		—

Total derivative assets	$	84	$	—	$	84	$	—

Deferred compensation liabilities	$	4,200	$	4,200	$	—	$	—

Derivative liabilities
IRLCs	$	41	$	—	$	41	$	—


	December 31, 2012
	Total Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Total 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
IRLCs	$	144	$	—	$	144	$	—

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

Derivative liabilities
IRLCs	$	16	$	—	$	16	$	—

Assets Measured at Fair Value on Nonrecurring Basis

The following tables summarize assets measured at fair value on a nonrecurring basis, segregated by the level of valuation inputs in the fair value hierarchy, in the periods indicated:


	December 31, 2013
(Amounts in thousands)	Total Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Impaired loans not covered by loss share agreements	$	8,935		—		—	$	8,935
OREO, not covered by loss share agreements		7,180		—		—		7,180
OREO, covered by loss share agreements		6,433		—		—		6,433


	December 31, 2012
	Total Fair Value		Fair Value Measurements Using
	Total Fair Value		Level 1		Level 2		Level 3
(Amounts in thousands)
Impaired loans not covered by loss share agreements	$	8,192		—		—	$	8,192
OREO, not covered by loss share agreements		5,704		—		—		5,704
OREO, covered by loss share agreements		3,255		—		—		3,255

Quantitative Information for Assets Measured at Fair Value on Nonrecurring Basis

The following table presents quantitative information for assets measured at fair value on a nonrecurring basis using Level 3 valuation inputs as of December 31, 2013:


	Valuation Technique	Unobservable Input		Range (Weighted Average)
	Valuation Technique	Unobservable Input		Range (Weighted Average)
Impaired loans	Discounted appraisals ⁽¹⁾		Appraisal adjustments ⁽²⁾		6% to 100% (47%)
OREO, not covered by loss share agreements	Discounted appraisals ⁽¹⁾		Appraisal adjustments ⁽²⁾		0% to 65% (34%)
OREO, covered by loss share agreements	Discounted appraisals ⁽¹⁾		Appraisal adjustments ⁽²⁾		4% to 70% (41%)

(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 present the carrying amount and fair value of the Company’s financial instruments, segregated by the level of valuation inputs in the fair value hierarchy, as of the dates indicated:


	December 31, 2013
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	56,567	$	56,567	$	56,567	$	—	$	—
Available-for-sale securities		519,820		519,820		251		519,569		—
Held-to-maturity securities		568		579		—		579		—
Loans held for sale		883		883		—		883		—
Loans held for investment less allowance		1,686,644		1,655,430		—		—		1,655,430
FDIC indemnification asset		34,691		34,691		—		—		34,691
Accrued interest receivable		7,521		7,521		—		7,521		—
Derivative financial assets		84		84		—		84		—
Deferred compensation assets		4,200		4,200		4,200		—		—
Liabilities
Demand deposits	$	339,680	$	339,680	$	—	$	339,680	$	—
Interest-bearing demand deposits		361,821		361,821		—		361,821		—
Savings deposits		524,010		524,010		—		524,010		—
Time deposits		725,231		728,999		—		728,999		—
Securities sold under agreements to repurchase		118,308		121,320		—		121,320		—
Accrued interest payable		2,169		2,169		—		2,169		—
FHLB and other indebtedness		166,088		178,031		—		178,031		—
Derivative financial liabilities		41		41		—		41		—
Deferred compensation liabilities		4,200		4,200		4,200		—		—


	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 indemnification asset		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.

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