Fair Value (Tables)

6 Months Ended

Jun. 30, 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:


	June 30, 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	$	32,127	$	—	$	32,127	$	—
Municipal securities		132,999		—		132,999		—
Single issue trust preferred securities		48,345		—		48,345		—
Corporate securities		60,708		—		60,708		—
Certificates of deposit		5,000		—		5,000		—
Agency MBS		96,793		—		96,793		—
Equity securities		219		201		18		—

Total available-for-sale securities	$	376,191	$	201	$	375,990	$	—

Fair value loans	$	5,099	$	—	$	5,099	$	—

Deferred compensation assets	$	3,539	$	3,539	$	—	$	—

Derivative assets
Forward sale loan commitments	$	20	$	—	$	20	$	—

Total derivative assets	$	40	$	—	$	40	$	—

Deferred compensation liabilities	$	3,539	$	3,539	$	—	$	—

Derivative liabilities
Interest rate swaps	$	172	$	—	$	172	$	—
IRLCs		20		—		20		—

Total derivative liabilities	$	212	$	—	$	212	$	—


	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:


	June 30, 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	$	9,126		—		—	$	9,126
OREO, not covered by loss share agreements		3,312		—		—		3,312
OREO, covered by loss share agreements		2,410		—		—		2,410


	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	June 30, 2015	December 31, 2014

Impaired loans	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	0% to 66% (25%)	1% to 33% (22%)
OREO, not covered	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	10% to 60% (21%)	10% to 47% (26%)
OREO, covered	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	11% to 46% (41%)	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:


	June 30, 2015
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	92,602	$	92,602	$	92,602	$	—	$	—
Available-for-sale securities		376,191		376,191		201		375,990		—
Held-to-maturity securities		72,652		72,879		—		72,879		—
Loans held for sale		913		930		—		930		—
Loans held for investment less allowance		1,647,031		1,684,342		—		5,271		1,679,071
FDIC indemnification asset		23,653		13,597		—		—		13,597
Accrued interest receivable		6,119		6,119		—		6,119		—
Derivative financial assets		20		20		—		20		—
Deferred compensation assets		3,539		3,539		3,539		—		—

Liabilities
Demand deposits	$	424,438	$	424,438	$	—	$	424,438	$	—
Interest-bearing demand deposits		329,583		329,583		—		329,583		—
Savings deposits		528,003		528,003		—		528,003		—
Time deposits		638,197		637,691		—		637,691		—
Securities sold under agreements to repurchase		122,158		123,073		—		123,073		—
Accrued interest payable		1,431		1,431		—		1,431		—
FHLB and other borrowings		80,999		87,371		—		87,371		—
Derivative financial liabilities		192		192		—		192		—
Deferred compensation liabilities		3,539		3,539		3,539		—		—


	December 31, 2014
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	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		—		—