Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

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:


	March 31, 2015
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Agency securities	$	33,242	$	—	$	33,242	$	—
Municipal securities		135,648		—		135,648		—
Single issue trust preferred securities		47,088		—		47,088		—
Corporate securities		31,535		—		31,535		—
Certificates of deposit		5,000		—		5,000		—
Agency MBS		98,720		—		98,720		—
Equity securities		221		203		18		—

Total available-for-sale securities	$	351,454	$	203	$	351,251	$	—

Fair value loans	$	5,009	$	—	$	5,009	$	—

Deferred compensation assets	$	3,480	$	3,480	$	—	$	—

Derivative assets
IRLCs	$	21	$	—	$	21	$	—

Total derivative assets	$	21	$	—	$	21	$	—

Deferred compensation liabilities	$	3,480	$	3,480	$	—	$	—

Derivative liabilities
Interest rate swaps	$	318	$	—	$	318	$	—
Forward sale loan commitments		21		—		21		—

Total derivative liabilities	$	339	$	—	$	339	$	—


	December 31, 2014
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Agency securities	$	33,598	$	—	$	33,598	$	—
Municipal securities		138,915		—		138,915		—
Single issue trust preferred securities		46,137		—		46,137		—
Corporate securities		5,109		—		5,109		—
Agency MBS		102,119		—		102,119		—
Equity securities		239		221		18		—

Total available-for-sale securities	$	326,117	$	221	$	325,896	$	—

Fair value loans	$	3,406	$	—	$	3,406	$	—

Deferred compensation assets	$	3,380	$	3,380	$	—	$	—

Derivative assets
IRLCs	$	5	$	—	$	5	$	—

Total derivative assets	$	5	$	—	$	5	$	—

Deferred compensation liabilities	$	3,380	$	3,380	$	—	$	—

Derivative liabilities
Interest rate swaps	$	209	$	—	$	209	$	—
Forward sale loan commitments		5		—		5		—

Total derivative liabilities	$	214	$	—	$	214	$	—

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:


	March 31, 2015
	Total		Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
(Amounts in thousands)
Impaired loans not covered by loss share agreements	$	3,054		—		—	$	3,054
OREO, not covered by loss share agreements		1,505		—		—		1,505
OREO, covered by loss share agreements		974		—		—		974

	December 31, 2014
	Total		Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
(Amounts in thousands)
Impaired loans not covered by loss share agreements	$	6,480		—		—	$	6,480
OREO, not covered by loss share agreements		5,462		—		—		5,462
OREO, covered by loss share agreements		5,247		—		—		5,247

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 in the periods indicated:

Valuation

Unobservable

Range (Weighted Average)

Technique

Input

March 31, 2015

December 31, 2014

Impaired loans

Discounted appraisals⁽¹⁾

Appraisal adjustments⁽²⁾

8% to 69% (21%)

1% to 33% (22%)

OREO, not covered

Discounted appraisals⁽¹⁾

Appraisal adjustments⁽²⁾

10% to 60% (17%)

10% to 47% (26%)

OREO, covered

Discounted appraisals⁽¹⁾

Appraisal adjustments⁽²⁾

2% to 43% (33%)

10% to 52% (44%)

(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:


	March 31, 2015
(Amounts in thousands)	Carrying Amount		Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	207,024	$	207,024	$	207,024	$	—	$	—
Available-for-sale securities		351,454		351,454		203		351,251		—
Held-to-maturity securities		72,897		73,287		—		73,287		—
Loans held for sale		1,174		1,174		—		1,174		—
Loans held for investment less allowance		1,650,782		1,692,816		—		5,009		1,687,807
FDIC indemnification asset		26,053		16,470		—		—		16,470
Accrued interest receivable		6,188		6,188		—		6,188		—
Derivative financial assets		21		21		—		21		—
Deferred compensation assets		3,480		3,480		3,480		—		—
Liabilities
Demand deposits	$	433,422	$	433,422	$	—	$	433,422	$	—
Interest-bearing demand deposits		341,300		341,300		—		341,300		—
Savings deposits		533,589		533,589		—		533,589		—
Time deposits		682,878		684,249		—		684,249		—
Securities sold under agreements to repurchase		116,302		118,070		—		118,070		—
Accrued interest payable		6,188		6,188		—		6,188		—
FHLB and other borrowings		105,999		114,819		—		114,819		—
Derivative financial liabilities		339		339		—		339		—
Deferred compensation liabilities		3,480		3,480		3,480		—		—


	December 31, 2014
(Amounts in thousands)	Carrying Amount		Fair Value		Fair Value Measurements Using
(Amounts in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	237,660	$	237,660	$	237,660	$	—	$	—
Available-for-sale securities		326,117		326,117		221		325,896		—
Held-to-maturity securities		57,948		57,889		—		57,889		—
Loans held for sale		1,792		1,790		—		1,790		—
Loans held for investment less allowance		1,669,189		1,738,553		—		3,406		1,735,147
FDIC indemnification asset		27,900		18,040		—		—		18,040
Accrued interest receivable		6,315		6,315		—		6,315		—
Derivative financial assets		5		5		—		5		—
Deferred compensation assets		3,380		3,380		3,380		—		—
Liabilities
Demand deposits	$	417,729	$	417,729	$	—	$	417,729	$	—
Interest-bearing demand deposits		353,874		353,874		—		353,874		—
Savings deposits		525,478		525,478		—		525,478		—
Time deposits		703,678		704,590		—		704,590		—
Securities sold under agreements to repurchase		121,742		123,114		—		123,114		—
Accrued interest payable		1,668		1,668		—		1,668		—
FHLB and other borrowings		107,999		116,599		—		116,599		—
Derivative financial liabilities		214		214		—		214		—
Deferred compensation liabilities		3,380		3,380		3,380		—		—

- 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