Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value of Financial Instruments

Schedule of carrying amount and estimated fair value of financial instruments

	At March 31, 2013
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	99,458	$	99,458	$	—	$	—	$	99,458
Securities available for sale	301,160		142,219		157,957		984		301,160
Federal Reserve Bank and FHLB stock, at cost	10,974		10,974		—		—		10,974
Loans held for sale, net	3,643		—		3,643		—		3,643
Loans held for investment, net	933,834		—		—		1,004,001		1,004,001
Accrued interest receivable	4,898		4,898		—		—		4,898
Liabilities:
Deposit accounts	1,185,719		835,196		351,462		—		1,186,658
Other borrowings	44,191		—		47,463		—		47,463
Subordinated debentures	10,310		—		4,865		—		4,865
Accrued interest payable	213		213		—		—		213

	At December 31, 2012
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	59,352	$	59,352	$	—	$	—	$	59,352
Securities available for sale	84,066		81,042		2,072		952		84,066
Federal Reserve Bank and FHLB stock, at cost	11,247		11,247		—		—		11,247
Loans held for sale, net	3,681		—		3,681		—		3,681
Loans held for investment, net	974,213		—		—		1,049,589		1,049,589
Accrued interest receivable	4,126		4,126		—		—		4,126
Liabilities:
Deposit accounts	904,768		548,101		363,382		—		911,483
FHLB advances	87,000		87,000		—		—		87,000
Other borrowings	28,500		—		31,267		—		31,267
Subordinated debentures	10,310		—		4,973		—		4,973
Accrued interest payable	142		142		—		—		142

	At March 31, 2012
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	93,649	$	93,649	$	—	$	—	$	93,649
Securities available for sale	150,739		146,875		2,898		966		150,739
Federal Reserve Bank and FHLB stock, at cost	11,975		11,975		—		—		11,975
Loans held for sale, net	62		—		62		—		62
Loans held for investment, net	687,079		—		—		758,893		758,893
Accrued interest receivable	3,632		3,632		—		—		3,632
Liabilities:
Deposit accounts	846,717		436,064		413,314		—		849,378
FHLB advances	—		—		—		—		—
Other borrowings	28,500		—		31,964		—		31,964
Subordinated debentures	10,310		—		7,617		—		7,617
Accrued interest payable	181		181		—		—		181

Schedule of Off-balance sheet commitments and standby letters of credit

	Notional Amount								Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	236,720	$	—	$	23,672	$	—	$	23,672

	Notional Amount								Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	131,450	$	—	$	13,145	$	—	$	13,145

	Notional Amount								Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	105,011	$	—	$	10,501	$	—	$	10,501

Schedule of Company's assets measured at fair value on a recurring basis

	March 31, 2013
	Fair Value Measurement Using						Securities at
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Investment securities available for sale:
U.S. Treasury	$	85	$	—	$	—	$	85
Municipal bonds	—		155,939		—		155,939
Mortgage-backed securities	142,134		2,018		984		145,136
Total securities available for sale	$	142,219	$	157,957	$	984	$	301,160
Stock:
FHLB stock	$	8,955	$	—	$	—	$	8,955
Federal Reserve Bank stock	2,019		—		—		2,019
Total stock	$	10,974	$	—	$	—	$	10,974
Total securities	$	153,193	$	157,957	$	984	$	312,134

	March 31, 2012
	Fair Value Measurement Using						Securities at
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Investment securities available for sale:
U.S. Treasury	$	160	$	—	$	—	$	160
Corporate	4,817		—		—		4,817
Municipal bonds	27,695		—		—		27,695
Mortgage-backed securities	114,203		2,898		966		118,067
Total securities available for sale	$	146,875	$	2,898	$	966	$	150,739
Stock:
FHLB stock	$	9,956	$	—	$	—	$	9,956
Federal Reserve Bank stock	2,019		—		—		2,019
Total stock	$	11,975	$	—	$	—	$	11,975
Total securities	$	158,850	$	2,898	$	966	$	162,714

Schedule of reconciliation of the beginning and ending balance of assets measured at fair value on a recurring basis using significant unobservable (Level 3) inputs

	Three Months Ended
	March 31, 2013			March 31, 2012
	(in thousands)
Balance, beginning of period	$	952		$	991
Total gains or (losses) realized/unrealized:
Included in earnings (or changes in net assets)	(30		)	(47		)
Included in other comprehensive income	117			113
Purchases, issuances, and settlements	(55		)	(71		)
Transfer in and/or out of Level 3	—			(20		)
Balance, end of period	$	984		$	966

Schedule of Company's assets measured at fair value on a non-recurring basis

	March 31, 2013
	Fair Value Measurement Using						Assets at
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Assets
Impaired loans	$	—	$	—	$	3,752	$	3,752
Loans held for sale	—		3,643		—		3,643
Other real estate owned	—		1,561		—		1,561
Total assets	$	—	$	5,204	$	3,752	$	8,956

	March 31, 2012
	Fair Value Measurement Using						Assets at
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Assets
Impaired loans	$	—	$	—	$	4,628	$	4,628
Loans held for sale	—		62		—		62
Other real estate owned	—		1,768		—		1,768
Total assets	$	—	$	1,830	$	4,628	$	6,458