Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value of Financial Instruments

Schedule of carrying amount and estimated fair value of financial instruments

	At March 31, 2014
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	124,419	$	124,419	$	—	$	—	$	124,419
Securities available for sale	202,142		—		202,142		—		202,142
Federal Reserve Bank, TIB and FHLB stock, at cost	14,104		14,104		—		—		14,104
Loans held for sale, net	—		—		—		—		—
Loans held for investment, net	1,316,687		—		—		1,392,661		1,392,661
Accrued interest receivable	5,865		5,865		—		—		5,865
Other real estate owned	752		—		—		752		752
Liabilities:
Deposit accounts	1,435,203		1,110,877		354,437		—		1,465,314
FHLB advances	50,000		50,000		—		—		50,000
Other borrowings	45,506		—		47,708		—		47,708
Subordinated debentures	10,310		—		4,649		—		4,649
Accrued interest payable	168		168		—		—		168

	At December 31, 2013
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	126,813	$	126,813	$	—	$	—	$	126,813
Securities available for sale	256,089		—		256,089		—		256,089
Federal Reserve Bank and FHLB stock, at cost	15,450		15,450		—		—		15,450
Loans held for sale, net	3,147		—		3,147		—		3,147
Loans held for investment, net	1,231,923		—		—		1,230,316		1,230,316
Accrued interest receivable	6,254		6,254		—		—		6,254
Other real estate owned	1,186		—		1,186		—		1,186
Liabilities:
Deposit accounts	1,306,286		991,630		301,007		—		1,292,637
FHLB advances	156,000		156,000		—		—		156,000
Other borrowings	48,091		—		49,058		—		49,058
Subordinated debentures	10,310		—		4,696		—		4,696
Accrued interest payable	166		166		—		—		166

	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		85		300,091		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
Other real estate owned	1,561		—		—		1,561		1,561
Liabilities:
Deposit accounts	1,185,719		835,196		351,462		—		1,186,658
FHLB advances	15,691		15,691		—		—		15,691
Other borrowings	28,500		—		31,772		—		31,772
Subordinated debentures	10,310		—		4,865		—		4,865
Accrued interest payable	213		213		—		—		213

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

	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	246,014	$	—	$	24,601	$	—	$	24,601

	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	337,181	$	—	$	33,718	$	—	$	33,718

	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	236,720	$	—	$	23,672	$	—	$	23,672

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

	March 31, 2014
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Securities at  Fair Value
	(in thousands)
Investment securities available for sale:
Municipal bonds	$	—	$	77,324	$	—	$	77,324
Mortgage-backed securities	—		124,818		—		124,818
Total securities available for sale	$	—	$	202,142	$	—	$	202,142
	March 31, 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	$	85	$	—	$	—	$	85
Municipal bonds	—		155,939		—		155,939
Mortgage-backed securities	—		144,152		984		145,136
Total securities available for sale	$	85	$	300,091	$	984	$	301,160

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

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

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

	March 31, 2014
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at  Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	1,730	$	1,730
Other real estate owned	—		—		752		752
Total assets	$	—	$	—	$	2,482	$	2,482
	March 31, 2013
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	2,690	$	2,690
Loans held for sale	—		3,643		—		3,643
Other real estate owned	—		—		1,561		1,561
Total assets	$	—	$	3,643	$	4,251	$	7,894

Schedule of quantitative information about level 3 of fair value measurements for financial instruments measured at fair value on a non-recurring basis

	March 31, 2014
					Range
	Fair Value		Valuation Techniques	Unobservable Inputs	Rate	Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial and industrial	$	31	Collateral valuation	Management adjustment to reflect current conditions and selling costs	6.00%	3	0-10%
Commercial owner occupied	718		Collateral valuation	Management adjustment to reflect current conditions and selling costs	7.00-11.75%	3-8	0-10%
SBA	14		Collateral valuation	Management adjustment to reflect current conditions and selling costs	6.00%	7	0-20%
Real estate loans:
Commercial non-owner occupied	918		Collateral valuation	Management adjustment to reflect current conditions and selling costs	6.13-7.00%	12-13	0-15%
One-to-four family	49		Collateral valuation	Management adjustment to reflect current conditions and selling costs	11.10-15.00%	6-15	0-10%
Total collateral dependent impaired loans	$	1,730
Other real estate owned
Land	$	752	Collateral valuation	Management adjustment to reflect current conditions and selling costs	—	—	0-10%
Total other real estate owned	$	752

	March 31, 2013
					Range
	Fair Value		Valuation Techniques	Unobservable Inputs	Rate	Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial and industrial	$	580	Collateral valuation	Management adjustment to reflect current conditions and selling costs	5.25-7.25%	3-8	0-10%
Commercial owner occupied	245		Collateral valuation	Management adjustment to reflect current conditions and selling costs	8.00%	5	0-10%
SBA	129		Collateral valuation	Management adjustment to reflect current conditions and selling costs	5.25-6.00%	1-6	0-20%
Real estate loans:
Commercial non-owner occupied	1,511		Collateral valuation	Management adjustment to reflect current conditions and selling costs	4.75-6.25%	10-11	0-15%
One-to-four family	225		Collateral valuation	Management adjustment to reflect current conditions and selling costs	7.25-11.50%	1-12	0-10%
Total collateral dependent impaired loans	$	2,690
Other real estate owned
Land	$	1,561	Collateral valuation	Management adjustment to reflect current conditions and selling costs	—	—	0-10%
Total other real estate owned	$	1,561