Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value of Financial Instruments

Schedule of carrying amount and estimated fair value of financial instruments

	At March 31, 2015
	Carrying								Estimated
	Amount		Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	178,371	$	178,371	$	—	$	—	$	178,371
Securities available for sale	280,461		—		280,461		—		280,461
Federal Reserve Bank, TIB and FHLB stock, at cost	30,586		30,586		—		—		30,586
Loans held for investment, net	2,117,741		—		—		2,205,161		2,205,161
Accrued interest receivable	8,769		8,769		—		—		8,769
Other real estate owned	997		—		—		997		997
Liabilities:
Deposit accounts	2,043,166		1,576,056		479,204		—		2,055,260
FHLB advances	300,000		300,031		—		—		300,031
Other borrowings	43,434		—		45,084		—		45,084
Subordinated debentures	70,310		—		69,501		—		69,501
Accrued interest payable	177		177		—		—		177

	At December 31, 2014
	Carrying								Estimated
	Amount		Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Assets:
Cash and cash equivalents	$	110,925	$	110,925	$	—	$	—	$	110,925
Securities available for sale	201,638		—		201,638		—		201,638
Federal Reserve Bank and FHLB stock, at cost	17,067		17,067		—		—		17,067
Loans held for investment, net	1,616,422		—		—		1,686,046		1,686,046
Accrued interest receivable	7,131		7,131		—		—		7,131
Other real estate owned	1,037		—		—		1,037		1,037
Liabilities:
Deposit accounts	1,630,826		1,216,847		519,898		—		1,736,745
FHLB advances	70,000		70,025		—		—		70,025
Other borrowings	46,643		—		48,312		—		48,312
Subordinated debentures	70,310		—		33,456		—		33,456
Accrued interest payable	209		209		—		—		209

	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 and FHLB stock, at cost	14,104		14,104		—		—		14,104
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
SWD
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

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

	Notional								Cost to Cede
	Amount		Level 1		Level 2		Level 3		or Assume
Off-balance sheet commitments and standby letters of credit	$	403,084	$	—	$	40,308	$	—	$	40,308

	Notional								Cost to Cede
	Amount		Level 1		Level 2		Level 3		or Assume
Off-balance sheet commitments and standby letters of credit	$	355,024	$	—	$	35,502	$	—	$	35,502

	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

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

	March 31, 2015
	Fair Value Measurement Using						Securities at
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Investment securities available for sale:
Municipal bonds	$	—	$	105,523	$	—	$	105,523
Mortgage-backed securities	—		174,938		—		174,938
Total securities available for sale	$	—	$	280,461	$	—	$	280,461

	March 31, 2014
	Fair Value Measurement Using						Securities at
	Level 1		Level 2		Level 3		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

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

	March 31, 2015
	Fair Value Measurement Using						Assets at
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
Assets
Collateral dependent impaired loans	$	—	$	—	$	2,742	$	2,742
Other real estate owned	—		—		997		997
Total assets	$	—	$	—	$	3,739	$	3,739

	March 31, 2014
	Fair Value Measurement Using						Assets at
	Level 1		Level 2		Level 3		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

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, 2015
							Range
	Fair Value		Valuation Techniques	Unobservable Inputs	Rate		Maturity (years)	Unobservable Inputs
Collateral dependent impaired loans:
Business loans:
Commercial and industrial	$	1,853	Collateral valuation	Management adjustment to reflect current conditions and selling costs	6.70	%	8	0-10%
Commercial owner occupied	379		Collateral valuation	Management adjustment to reflect current conditions and selling costs	6.75	%	7	0-10%
Real estate loans:
Commercial non-owner occupied	458		Collateral valuation	Management adjustment to reflect current conditions and selling costs	7.00	%	12	0-15%
One-to-four family	52		Collateral valuation	Management adjustment to reflect current conditions and selling costs	8.00% - 15.00%		5 - 16	0-10%
Total collateral dependent impaired loans	$	2,742
Other real estate owned
Land	$	711	Collateral valuation	Management adjustment to reflect current conditions and selling costs	—		—	0-10%
One-to-four family	286		Collateral valuation	Management adjustment to reflect current conditions and selling costs	—		—	0-10%
Total other real estate owned	$	997

	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