Fair Value (Tables)

9 Months Ended

Sep. 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:


	September 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	$	31,676	$	—	$	31,676	$	—
Municipal securities		131,088		—		131,088		—
Single issue trust preferred securities		49,434		—		49,434		—
Corporate securities		70,654		—		70,654		—
Certificates of deposit		5,000		—		5,000		—
Agency MBS		94,125		—		94,125		—
Equity securities		235		217		18		—

Total available-for-sale securities	$	382,212	$	217	$	381,995	$	—

Fair value loans	$	4,887	$	—	$	4,887	$	—

Deferred compensation assets	$	3,425	$	3,425	$	—	$	—

Derivative assets
Forward sale loan commitments	$	27	$	—	$	27	$	—

Total derivative assets	$	27	$	—	$	27	$	—

Deferred compensation liabilities	$	3,425	$	3,425	$	—	$	—

Derivative liabilities
Interest rate swaps	$	318	$	—	$	318	$	—
IRLCs		27		—		27		—

Total derivative liabilities	$	345	$	—	$	345	$	—


	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:


	September 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	$	11,131		—		—	$	11,131
OREO, not covered by loss share agreements		4,790		—		—		4,790
OREO, covered by loss share agreements		2,938		—		—		2,938

	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	September 30, 2015	December 31, 2014
Impaired loans	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	6% to 41% (24%)	1% to 33% (22%)
OREO, not covered	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	10% to 100% (36%)	10% to 47% (26%)
OREO, covered	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	16% to 94% (47%)	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:


	September 30, 2015
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	62,024	$	62,024	$	62,024	$	—	$	—
Available-for-sale securities		382,212		382,212		217		381,995		—
Held-to-maturity securities		72,596		73,030		—		73,030		—
Loans held for sale		523		523		—		523		—
Loans held for investment less allowance		1,670,347		1,705,601		—		5,205		1,700,396
FDIC indemnification asset		22,049		12,998		—		—		12,998
Accrued interest receivable		5,910		5,910		—		5,910		—
Derivative financial assets		27		27		—		27		—
Deferred compensation assets		3,425		3,425		3,425		—		—

Liabilities
Demand deposits	$	442,021	$	442,021	$	—	$	442,021	$	—
Interest-bearing demand deposits		343,303		343,303		—		343,303		—
Savings deposits		526,627		526,627		—		526,627		—
Time deposits		590,952		591,757		—		591,757		—
Securities sold under agreements to repurchase		124,076		125,089		—		125,089		—
Accrued interest payable		1,347		1,347		—		1,347		—
FHLB and other borrowings		80,955		85,629		—		85,629		—
Derivative financial liabilities		345		345		—		345		—
Deferred compensation liabilities		3,425		3,425		3,425		—		—

	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		—		—