Fair Value (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value

Schedule of financial assets and liabilities measured on a recurring basis

			Fair Value Measurements Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets at June 30, 2013:
Available-for-sale securities:
Agency mortgage-backed securities	$	225,397		—	$	225,397		—
Corporate bonds		47,646		—		47,646		—
Trust preferred securities		20,735		—		20,735		—
I/O strip receivables		1,726		—		1,726		—
Assets at December 31, 2012:
Available-for-sale securities:
Agency mortgage-backed securities	$	291,244		—	$	291,244		—
Corporate bonds		55,588		—		55,588		—
Trust preferred securities		21,080		—		21,080		—
I/O strip receivables		1,786				1,786		—

Schedule of assets and liabilities measured on a non-recurring basis

			Fair Value Measurements Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Assets at June 30, 2013:
Impaired loans—held-for-investment:
Commercial	$	2,109		—		—	$	2,109
Real estate:
Commercial and residential		3,041		—		—		3,041
Land and construction		1,632		—		—		1,632
Consumer		108		—		—		108
	$	6,890		—		—	$	6,890
Foreclosed assets:
Commercial	$	29		—		—	$	29
Land and construction		630		—		—		630
	$	659		—		—	$	659
Assets at December 31, 2012:
Impaired loans—held-for-investment:
Commercial	$	3,645		—		—	$	3,645
Real estate:
Commercial and residential		3,674		—		—		3,674
Land and construction		1,723		—		—		1,723
Consumer		130		—		—		130
	$	9,172		—		—	$	9,172
Foreclosed assets:
Commercial	$	83		—		—	$	83
Land and construction		1,187		—		—		1,187
	$	1,270		—		—	$	1,270

Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value

	June 30, 2013			December 31, 2012
	(Dollars in thousands)
Impaired loans held-for-investment:
Book value of impaired loans held-for-investment carried at fair value	$	10,292		$	11,912
Book value of impaired loans held-for-investment carried at cost		4,754			7,732
Total impaired loans held-for-investment	$	15,046		$	19,644
Impaired loans held-for-investment carried at fair value:
Book value of impaired loans held-for-investment carried at fair value	$	10,292		$	11,912
Specific valuation allowance		(3,402	)		(2,740	)
Impaired loans held-for-investment carried at fair value, net	$	6,890		$	9,172

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

	June 30, 2013
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans—held-for-investment:
Commercial	$	2,109	Market Approach	Discount adjustment for differences between comparable sales	0% to 3% (2%)
Real estate:
Commercial and residential		3,041	Market Approach	Discount adjustment for differences between comparable sales	1% to 15% (1%)
Land and construction		1,632	Market Approach	Discount adjustment for differences between comparable sales	1% to 4% (2%)
Foreclosed assets:
Land and construction		630	Market Approach	Discount adjustment for differences between comparable sales	1% to 16% (7%)

	December 31, 2012
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Impaired loans—held-for-investment:
Commercial	$	3,645	Market Approach	Discount adjustment for differences between comparable sales	0% to 4% (1%)
Real estate:
Commercial and residential		3,674	Market Approach	Discount adjustment for differences between comparable sales	0% to 13% (1%)
Land and construction		1,723	Market Approach	Discount adjustment for differences between comparable sales	1% to 4% (2%)
Foreclosed assets:
Land and construction		1,187	Market Approach	Discount adjustment for differences between comparable sales	0% to 23% (6%)

Schedule of carrying amounts and estimated fair values of financial instruments

			Estimated Fair Value
	Carrying Amounts		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	85,762	$	85,762	$	—	$	—	$	85,762
Securities available-for-sale		293,778		—		293,778		—		293,778
Securities held-to-maturity		81,731		—		72,772		—		72,772
Loans (including loans held-for-sale), net		828,929		—		6,321		821,053		827,374
FHLB and FRB stock		10,871		—		—		—		N/A
Accrued interest receivable		4,138		—		1,552		2,586		4,138
Loan servicing rights and I/O strips receivables		2,357		—		4,474		—		4,474
Liabilities:
Time deposits	$	306,214	$	—	$	306,834	$	—	$	306,834
Other deposits		882,825		—		882,825		—		882,825
Subordinated debt		9,279		—		—		5,670		5,670
Accrued interest payable		234		—		234		—		234

			Estimated Fair Value
	Carrying Amounts		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	373,565	$	373,565	$	—	$	—	$	373,565
Securities available-for-sale		367,912		—		367,912		—		367,912
Securities held-to-maturity		51,472		—		50,964		—		50,964
Loans (including loans held-for-sale), net		796,695		—		3,409		793,911		797,320
FHLB and FRB stock		10,728		—		—		—		N/A
Accrued interest receivable		3,773		—		1,514		2,259		3,773
Loan servicing rights and I/O strips receivables		2,495		—		4,715		—		4,715
Liabilities:
Time deposits	$	318,664	$	—	$	319,476	$	—	$	319,476
Other deposits		1,160,704		—		1,160,704		—		1,160,704
Subordinated debt		9,279		—		—		5,400		5,400
Accrued interest payable		277		—		277		—		277