Disclosures Regarding Fair Value (Tables)

9 Months Ended

Sep. 30, 2012

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

	September 30, 2012
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale
State and municipal	$	—	$	12,412	$	—	$	12,412
Collateralized mortgage obligations		—		128,727		—		128,727
Other mortgage-backed (federal agencies)		—		86,871		—		86,871
SBA loan-backed (federal agency)		40,901		21,894		—		62,795
Derivative financial instruments		—		820		—		820
Total assets measured at fair value on a recurring basis	$	40,901	$	250,724	$	—	$	291,625
Liabilities
Derivative financial instruments	$	—	$	278	$	—	$	278

	December 31, 2011
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale
State and municipal	$	—	$	120,965	$	—	$	120,965
Collateralized mortgage obligations		—		118,949		—		118,949
Other mortgage-backed (federal agencies)		—		21,078		—		21,078
Derivative financial instruments		—		481		—		481
Total assets measured at fair value on a recurring basis	$	—	$	261,473	$	—	$	261,473
Liabilities
Derivative financial instruments	$	—	$	25	$	—	$	25

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2012 and December 31, 2011.

	September 30, 2012
	Level 1		Level 2		Level 3		Total
Assets
Mortgage loans held for sale	$	—	$	3,795	$	—	$	3,795
Other loans held for sale		150		6,938		—		7,088
Impaired loans in gross loans		193		15,718		3,516		19,427
Foreclosed real estate and repossessed personal property		1,022		624		10,002		11,648
Long-lived assets held for sale		165		—		685		850
Total assets measured at fair value on a nonrecurring basis	$	1,530	$	27,075	$	14,203	$	42,808

	December 31, 2011
	Level 1		Level 2		Level 3		Total
Assets
Mortgage loans held for sale	$	—	$	3,648	$	—	$	3,648
Other loans held for sale		—		12,857		1,321		14,178
Impaired loans in gross loans		—		36,314		7,111		43,425
Foreclosed real estate and repossessed personal property		3,491		2,266		22,067		27,824
Long-lived assets held for sale		—		—		1,603		1,603
Total assets measured at fair value on a nonrecurring basis	$	3,491	$	55,085	$	32,102	$	90,678

Summary of Significant Unobservable Inputs Used in the Fair Value Measurements for Level 3 Assets Measured at Fair Value on a Nonrecurring Basis

The following table summarizes the significant unobservable inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis at September 30, 2012 (in thousands).

	Fair value at September 30, 2012		Valuation technique	Significant unobservable inputs
Assets
Impaired loans in gross loans	$	3,516	Internal assessment of collateral value	Adjustments to appraisals for recent comparable sales
Foreclosed real estate and repossessed personal property		10,002	Appraisals of collateral value	Adjustments to appraisal for age of comparable sales
Long-lived assets held for sale		685	Internal valuation	Appraisals and/or sales of comparable properties

Foreclosed Real Estate and Repossessed Personal Property

In addition, any income taxes or other expenses, which would be incurred in an actual sale or settlement, are not taken into consideration in the fair values presented.

	Carrying amount		Fair value
September 30, 2012
Financial instruments - assets
Loans (1)	$	696,175	$	710,141
Financial instruments - liabilities
Deposits		1,016,229		1,016,438
December 31, 2011
Financial instruments - assets
Loans (1)	$	704,537	$	715,288
Financial instruments - liabilities
Deposits		1,064,181		1,069,792

(1) Includes Loans, net less impaired loans valued based on the fair value of underlying collateral or contracted sales price.