Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value of Financial Instruments

Schedule of carrying amount and estimated fair value of financial instruments

	At September 30, 2013
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	61,419	$	61,419	$	—	$	—	$	61,419
Securities available for sale	282,846		187,961		94,885		—		282,846
Federal Reserve Bank, TIB and FHLB stock, at cost	10,827		10,827		—		—		10,827
Loans held for sale, net	3,176		—		3,176		—		3,176
Loans held for investment, net	1,130,975		—		—		1,225,352		1,225,352
Accrued interest receivable	5,629		5,629		—		—		5,629
Liabilities:
Deposit accounts	1,284,134		998,217		284,403		—		1,282,620
FHLB advances	35,000		35,000		—		—		35,000
Other borrowings	51,474		—		53,435		—		53,435
Subordinated debentures	10,310		—		4,766		—		4,766
Accrued interest payable	195		195		—		—		195

	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 September 30, 2012
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	58,243	$	58,243	$	—	$	—	$	58,243
Securities available for sale	114,250		54,099		59,190		961		114,250
Federal Reserve Bank and FHLB stock, at cost	12,191		12,191		—		—		12,191
Loans held for sale, net	4,728		—		4,728		—		4,728
Loans held for investment, net	851,715		—		—		931,640		931,640
Accrued interest receivable	3,933		3,933		—		—		3,933
Liabilities:
Deposit accounts	895,870		476,852		422,036		—		898,888
FHLB advances	47,000		47,000		—		—		47,000
Other borrowings	28,500		—		32,360		—		32,360
Subordinated debentures	10,310		—		8,222		—		8,222
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	$	333,592	$	—	$	33,359	$	—	$	33,359

	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

	Notional Amount		Level 1		Level 2		Level 3		Cost to Cede or Assume
Off-balance sheet commitments and standby letters of credit	$	152,057	$	—	$	15,206	$	—	$	15,206

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

	September 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	$	82	$	—	$	—	$	82
Municipal bonds	—		94,885		—		94,885
Mortgage-backed securities	187,879		—		—		187,879
Total securities available for sale	$	187,961	$	94,885	$	—	$	282,846
Stock:
FHLB stock	$	7,532	$	—	$	—	$	7,532
Federal Reserve Bank stock	3,295		—		—		3,295
Total stock	10,827		—		—		10,827
Total securities	$	198,788	$	94,885	$	—	$	293,673

	September 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	$	160	$	—	$	—	$	160
Municipal bonds	—		57,097		—		57,097
Mortgage-backed securities	53,939		2,093		961		56,993
Total securities available for sale	$	54,099	$	59,190	$	961	$	114,250
Stock:
FHLB stock	$	10,172	$	—	$	—	$	10,172
Federal Reserve Bank stock	2,019		—		—		2,019
Total stock	12,191		—		—		12,191
Total securities	$	66,290	$	59,190	$	961	$	126,441

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

	Nine Months Ended
	September 30, 2013			September 30, 2012
	(in thousands)
Balance, beginning of period	$	952		$	991
Total gains or (losses) realized/unrealized:
Included in earnings (or changes in net assets)	194			(118		)
Included in other comprehensive income	(140		)	290
Purchases, issuances, and settlements	(1,077		)	(202		)
Transfer in and/or out of Level 3	71			—
Balance, end of period	$	—		$	961

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

	September 30, 2013
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Impaired loans	$	—	$	—	$	1,161	$	1,161
Other real estate owned	—		—		1,186		1,186
Total assets	$	—	$	—	$	2,347	$	2,347

	September 30, 2012
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Assets at Fair Value
	(in thousands)
Assets
Impaired loans	$	—	$	—	$	2,866	$	2,866
Other real estate owned	—		—		5,521		5,521
Total assets	$	—	$	—	$	8,387	$	8,387