Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value of Financial Instruments

Schedule of carrying amount and estimated fair value of financial instruments

	At June 30, 2013
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	103,972	$	103,972	$	—	$	—	$	103,972
Securities available for sale	313,047		206,226		105,764		1,057		313,047
Federal Reserve Bank, TIB and FHLB stock, at cost	11,917		11,917		—		—		11,917
Loans held for sale, net	3,617		—		3,617		—		3,617
Loans held for investment, net	1,047,436		—		—		1,124,670		1,124,670
Accrued interest receivable	5,766		5,766		—		—		5,766
Liabilities:
Deposit accounts	1,314,189		978,117		336,238		—		1,314,355
Other borrowings	48,082		—		50,074		—		50,074
Subordinated debentures	10,310		—		4,818		—		4,818
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 June 30, 2012
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	64,972	$	64,972	$	—	$	—	$	64,972
Securities available for sale	146,134		102,004		43,203		927		146,134
Federal Reserve Bank and FHLB stock, at cost	12,744		12,744		—		—		12,744
Loans held for sale, net	2,401		—		2,401		—		2,401
Loans held for investment, net	787,661		—		—		869,751		869,751
Accrued interest receivable	3,968		3,968		—		—		3,968
Liabilities:
Deposit accounts	913,191		477,661		439,328		—		916,989
Other borrowings	28,500		—		32,177		—		32,177
Subordinated debentures	10,310		—		7,513		—		7,513
Accrued interest payable	151		151		—		—		151

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

	At June 30, 2013
	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	236,425	$	—	$	23,643	$	—	$	23,643
	At December 31, 2012
	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	131,450	$	—	$	13,145	$	—	$	13,145
	At June 30, 2012
	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	126,544	$	—	$	12,654	$	—	$	12,654

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

	June 30, 2013
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Investment securities available for sale:
U.S. Treasury	$	83	$	—	$	—	$	83
Corporate	—		9,169		—		9,169
Municipal bonds	—		94,747		—		94,747
Mortgage-backed securities	206,143		1,848		1,057		209,048
Total securities available for sale	$	206,226	$	105,764	$	1,057	$	313,047
Stock:
FHLB stock	$	8,622	$	—	$	—	$	8,622
Federal Reserve Bank stock	3,295		—		—		3,295
Total stock	$	11,917	$	—	$	—	$	11,917
Total securities	$	218,143	$	105,764	$	1,057	$	324,964

	June 30, 2012
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at Fair Value
	(in thousands)
Investment securities available for sale:
U.S. Treasury	$	261	$	—	$	—	$	261
Municipal bonds	—		41,116		—		41,116
Mortgage-backed securities	101,743		2,087		927		104,757
Total securities available for sale	$	102,004	$	43,203	$	927	$	146,134
Stock:
FHLB stock	$	10,725	$	—	$	—	$	10,725
Federal Reserve Bank stock	2,019		—		—		2,019
Total stock	$	12,744	$	—	$	—	$	12,744
Total securities	$	114,748	$	43,203	$	927	$	158,878

Schedule of changes in balance sheet carrying values measured at fair value on a recurring basis using significant unobservable (Level 3) inputs

	Six Months Ended
	June 30, 2013			June 30, 2012
	(in thousands)
Balance, beginning of period	$	952		$	991
Total gains or (losses) realized/unrealized:
Included in earnings (or changes in net assets)	(35		)	(82		)
Included in other comprehensive income	186			124
Purchases, issuances, and settlements	(117		)	(146		)
Transfer in and/or out of Level 3	71			40
Balance, end of period	$	1,057		$	927

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

	June 30, 2013
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Impaired loans	$	—	$	—	$	2,606	$	2,606
Other real estate owned	—		—		1,186		1,186
Total assets	$	—	$	—	$	3,792	$	3,792

	June 30, 2012
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Impaired loans	$	—	$	—	$	5,193	$	5,193
Other real estate owned	—		—		9,339		9,339
Total assets	$	—	$	—	$	14,532	$	14,532