Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

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, 2014
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Treasury securities	$	9,478	$	—	$	9,478	$	—
Municipal securities		141,062		—		141,062		—
Single issue trust preferred securities		48,682		—		48,682		—
Corporate securities		5,048		—		5,048		—
Agency MBS		137,519		—		137,519		—
Non-Agency Alt-A residential MBS		9,662		—		9,662		—
Equity securities		242		224		18		—

Total available-for-sale securities	$	351,693	$	224	$	351,469	$	—

Fair value loans	$	7,849	$	—	$	7,849	$	—

Deferred compensation assets	$	3,266	$	3,266	$	—	$	—

Derivative assets
Forward sale loan commitments	$	7	$	—	$	7	$	—

Total derivative assets	$	7	$	—	$	7	$	—

Deferred compensation liabilities	$	3,266	$	3,266	$	—	$	—

Derivative liabilities
Interest rate swaps	$	189	$	—	$	189	$	—
IRLCs		7		—		7		—

Total derivative liabilities	$	196	$	—	$	196	$	—


	December 31, 2013
	Total		Fair Value Measurements Using
(Amounts in thousands)	Fair Value		Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. Treasury securities	$	9,013	$	—	$	9,013	$	—
Municipal securities		144,280		—		144,280		—
Single issue trust preferred securities		46,234		—		46,234		—
Corporate securities		4,871		—		4,871		—
Agency MBS		300,386		—		300,386		—
Non-Agency Alt-A residential MBS		9,789		—		9,789		—
Equity securities		5,247		251		4,996		—

Total available-for-sale securities	$	519,820	$	251	$	519,569	$	—

Deferred compensation assets	$	4,200	$	4,200	$	—	$	—

Derivatives assets
Interest rate swaps	$	43	$	—	$	43	$	—
Forward sale loan commitments		41		—		41		—

Total derivative assets	$	84	$	—	$	84	$	—

Deferred compensation liabilities	$	4,200	$	4,200	$	—	$	—

Derivative liabilities
IRLCs	$	41	$	—	$	41	$	—

Total derivative liabilities	$	41	$	—	$	41	$	—

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, 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	$	12,692		—		—	$	12,692
OREO, not covered by loss share agreements		4,183		—		—		4,183
OREO, covered by loss share agreements		5,997		—		—		5,997


	December 31, 2013
	Total		Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
(Amounts in thousands)
Impaired loans not covered by loss share agreements	$	8,935		—		—	$	8,935
OREO, not covered by loss share agreements		7,180		—		—		7,180
OREO, covered by loss share agreements		6,433		—		—		6,433

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, 2014	December 31, 2013
Impaired loans	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	2% to 34% (21%)	6% to 100% (47%)
OREO, not covered	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	10% to 58% (33%)	0% to 65% (34%)
OREO, covered	Discounted appraisals ⁽¹⁾	Appraisal adjustments ⁽²⁾	10% to 52% (44%)	4% to 70% (41%)

(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, 2014
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	105,922	$	105,922	$	105,922	$	—	$	—
Available-for-sale securities		351,693		351,693		224		351,469		—
Held-to-maturity securities		31,029		30,903		—		30,903		—
Loans held for sale		1,150		1,150		—		1,150		—
Loans held for investment less allowance		1,741,633		1,778,672		—		7,849		1,770,823
FDIC indemnification asset		29,745		19,459		—		—		19,459
Accrued interest receivable		6,346		6,346		—		6,346		—
Derivative financial assets		7		7		—		7		—
Deferred compensation assets		3,266		3,266		3,266		—		—
Liabilities
Demand deposits	$	397,523	$	397,523	$	—	$	397,523	$	—
Interest-bearing demand deposits		347,589		347,589		—		347,589		—
Savings deposits		519,902		519,902		—		519,902		—
Time deposits		667,261		668,014		—		668,014		—
Securities sold under agreements to repurchase		114,439		116,055		—		116,055		—
Accrued interest payable		1,889		1,889		—		1,889		—
FHLB and other indebtedness		131,047		140,270		—		140,270		—
Derivative financial liabilities		196		196		—		196		—
Deferred compensation liabilities		3,266		3,266		3,266		—		—


	December 31, 2013
	Carrying				Fair Value Measurements Using
(Amounts in thousands)	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	56,567	$	56,567	$	56,567	$	—	$	—
Available-for-sale securities		519,820		519,820		251		519,569		—
Held-to-maturity securities		568		579		—		579		—
Loans held for sale		883		883		—		883		—
Loans held for investment less allowance		1,686,644		1,655,430		—		—		1,655,430
FDIC indemnification asset		34,691		34,691		—		—		34,691
Accrued interest receivable		7,521		7,521		—		7,521		—
Derivative financial assets		84		84		—		84		—
Deferred compensation assets		4,200		4,200		4,200		—		—
Liabilities
Demand deposits	$	339,680	$	339,680	$	—	$	339,680	$	—
Interest-bearing demand deposits		361,821		361,821		—		361,821		—
Savings deposits		524,010		524,010		—		524,010		—
Time deposits		725,231		728,999		—		728,999		—
Securities sold under agreements to repurchase		118,308		121,320		—		121,320		—
Accrued interest payable		2,169		2,169		—		2,169		—
FHLB and other indebtedness		166,088		178,031		—		178,031		—
Derivative financial liabilities		41		41		—		41		—
Deferred compensation liabilities		4,200		4,200		4,200		—		—

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details