Fair Value (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

			Fair Value Measurements at June 30, 2012, Using
	Assets/Liabilities Measured at  Fair Value		Quoted Prices In Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(Dollars in thousands)	June 30, 2012		(Level 1)		(Level 2)		(Level 3)
U.S. Government sponsored entities	$	79,269	$	—	$	79,269	$	—
Mortgage-backed investments	221,589		—		223,560		—
Obligations of states and political subdivisions	63,180		—		63,180		—
Collateralized debt obligations	850		—		—		850
Other debt securities	12,782		—		10,811		—
Total securities available for sale	$	377,670	$	—	$	376,820	$	850
Mortgage derivative assets	576		—		—		576
	$	378,246	$	—	$	376,820	$	1,426
Interest rate swap liability	$	2,349	$	—	$	—	$	2,349
Mortgage derivative liabilities	304		—		—		304
	$	2,653	$	—	$	—	$	2,653

			Fair Value Measurements at December 31, 2011, Using
	Assets/Liabilities Measured at  Fair Value		Quoted Prices In Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(Dollars in thousands)	December 31, 2011		(Level 1)		(Level 2)		(Level 3)
U.S. Government sponsored entities	$	58,792	$	—	$	58,792	$	—
Mortgage-backed investments	203,686		—		203,686		—
Obligations of states and political subdivisions	54,142		—		54,142		—
Collateralized debt obligations	819		—		—		819
Other debt securities	3,335		—		3,335		—
Total available for sale securities	$	320,774	$	—	$	319,955	$	819
Mortgage derivative assets	269		—		—		269
	$	321,043	$	—	$	319,955	$	1,088
Interest rate swap liability	$	1,834	$	—	$	—	$	1,834
Mortgage derivative liabilities	291		—		—		291
	$	2,125	$	—	$	—	$	2,125

Schedule of Activity in Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table reports the activity for the second quarter and first six months of 2012 and 2011 in assets measured at fair value on a recurring basis using significant unobservable (Level 3) inputs.

(Dollars in thousands)	Three Months Ended									Six Months Ended
	June 30, 2012									June 30, 2012
	Collateralized Debt Obligations			Mortgage Derivatives			Interest Rate Swap			Collateralized Debt Obligations			Mortgage Derivatives			Interest Rate Swap
Beginning Balance	$	872		$	81		$	(1,728	)	$	819		$	(22	)	$	(1,834	)
Total gains or losses (realized/unrealized):
Other-than-temporary impairment included in earnings	(4		)	—			—			(4		)	—			—
Other-than-temporary impairment (included in) transferred from other comprehensive income	(4		)	—			—			(4		)	—			—
Other gains/losses included in other comprehensive income	(14		)	—			(772		)	39			—			(812		)
Net swap settlement recorded	—			—			151			—			—			297
IRLC and FSA issuances	—			448			—			—			95			—
IRLC and FSA expirations and fair value changes included in earnings	—			(180		)	—			—			50			—
IRLC transfers into closed loans/FSA transferred on sales	—			(77		)	—			—			149			—
Ending Balance	$	850		$	272		$	(2,349	)	$	850		$	272		$	(2,349	)
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	(4	)	$	—		$	(151	)	$	—		$	—		$	(297	)

	Three Months Ended									Six Months Ended
(Dollars in thousands)	June 30, 2011									June 30, 2011
	Collateralized Debt Obligations			Mortgage Derivatives			Interest Rate Swap			Collateralized Debt Obligations			Mortgage Derivatives		Interest Rate Swap
Beginning Balance	$	866		$	31		$	988		$	934		218		$	817
Total gains or losses (realized/unrealized):
Other-than-temporary impairment included in earnings	(85		)	—			—			(381		)	—		—
Other-than-temporary impairment (included in) transferred from other comprehensive income	87			—			—			143			—		—
Other gains/losses included in other comprehensive income	78			—			(1,049		)	250			—		(907		)
Net swap settlement recorded	—			—			164			—			—		193
IRLC and FSA issuances	—			39			—			—			206		—
IRLC and FSA expirations and fair value changes included in earnings	—			(22		)	—			—			(65	)	—
IRLC transfers into closed loans/FSA transferred on sales	—			(14		)	—			—			(325	)	—
Ending Balance	$	946		$	34		$	103		$	946		34		$	103
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	(85	)	$	—		$	(164	)	$	—		—		$	(193	)

Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurruing Basis

The following tables summarize assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2011, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(Dollars in thousands)	12/31/11 (a)		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	15,533	$	—	$	—	$	15,533
Loan foreclosures	11,304		—		—		11,304
Other real estate	13,788		—		—		13,788

(a) These amounts represent the resulting carrying amounts on the consolidated statement of condition for impaired real estate-secured loans and other real estate for which fair value re-measurements took place during the period. Loan foreclosures represent the fair value portion of the carrying amounts of other real estate properties that were re-measured at the point of foreclosure during the period.

The following tables summarize assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2012, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(Dollars in thousands)	06/30/12 (a)		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	8,245	$	—	$	—	$	8,245
Loan foreclosures	1,855		—		—		1,855
Other real estate	8,732		—		—		8,732

Schedule of Certain Quantitative Information About Valuation Techniques and Significant Unobservable Inputs

The following table summarizes certain quantitative information about valuation techniques and significant unobservable inputs used in determining Level 3 nonrecurring fair value measurements.

	Fair Value at		Valuation	Unobservable		Weighted
(Dollars in thousands)	June 30, 2012		Techniques	Inputs	Range	Average
Impaired loans	$	8,245	Appraisals from comparable properties	Adjustments for market conditions since appraisal	$1 thousand - $559 thousand	$51 thousand
Loan foreclosures	1,855		Appraisals from comparable properties	Adjustments for market conditions since appraisal	$1 thousand - $68 thousand	$25 thousand
Other real estate	8,732		Appraisals from comparable properties	Adjustments for market conditions since appraisal	$9 thousand - $116 thousand	$55 thousand

The following table summarizes certain quantitative information about valuation techniques and significant unobservable inputs used in determining Level 3 fair value measurements.

	Fair Value at			Valuation	Unobservable			Weighted
(Dollars in thousands)	June 30, 2012			Techniques	Inputs	Range		Average
Collateralized debt obligations	$	850		Discounted cash flow	Discount margin Default rates	15.00% - 25.00% 0.25% - 1.76%		18.63% .74%
Mortgage interest rate lock agreements	309			Discounted cash flow	Pull-through rates	85.00	%	85.00	%
Mortgage forward sale agreements	(37		)	Consensus pricing	Pull-through rates	85.00	%	85.00	%
Interest rate swap	(2,349		)	Discounted cash flow	Discount rate	.52% - 1.10%		0.68	%

Schedule of Losses Recognized on Assets Measured on a Nonrecurring Basis

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:

	Three Months Ended				Six Months Ended
	June 30				June 30
(Dollars in thousands)	2012		2011		2012		2011
Impaired loans (a)	$	2,595	$	2,356	$	5,442	$	4,416
Loan foreclosures (b)	1,124		345		1,503		817
Other real estate (c)	536		1,053		1,636		3,107

(a) Represents additional impairments on loans which are based on the appraised value of the collateral. These impairments are accrued in the allowance for loan losses and charged to provision for loan loss expense.

(b) Represents foreclosures of loans secured by real estate when the foreclosed value is lower than the carrying value of the loan. These amounts are charged to the allowance for loan losses with the fair value of the foreclosed property being recorded in other real estate.

(c) Represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Schedule of Carrying Amounts and Fair Values of Financial Instruments

The following tables present the carrying amounts and fair values of the Company’s financial instruments at June 30, 2012 and December 31, 2011:

							Fair Value Measurements at June 30, 2012, Using
	June 30, 2012						Quoted Prices In Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(Dollars in thousands)	Carrying			Estimated
	Amount			Fair Value			(Level 1)		(Level 2)		(Level 3)
Financial assets:
Cash and short-term investments	$	64,605		$	64,605		$	64,605	$	—	$	—
Securities available for sale	377,670			377,670			—		376,820		850
Loans held for sale	22,291			22,893			—		—		22,893
Loans held for investment	967,286			909,021			—		—		909,021
Agency accounts receivable	201			201			201		—		—
Accrued interest receivable	6,060			6,060			6		1,745		4,309
Nonmarketable equity investments	7,394			7,394			—		—		7,394
Investments in unconsolidated VIEs	3,281			3,281			—		—		3,281
Mortgage derivative assets	576			576			—		—		576
Financial liabilities:
Noninterest-bearing deposits	236,145			236,145			236,145		—		—
NOW, MMDA and savings deposits	719,771			719,771			719,771		—		—
Certificates of deposit	405,422			412,408			—		—		412,408
Short-term borrowings	3,224			3,224			3,224		—		—
Other borrowings	40,333			42,130			—		—		42,130
Junior subordinated debt	30,928			25,250			—		—		25,250
Agency accounts payable	1,518			1,518			1,518		—		—
Accrued interest payable	844			844			844		—		844
Mortgage derivative liabilities	304			304			—		—		304
Other financial instruments:
Commitments to extend credit and letters of credit	(2		)	(319		)	—		—		(319		)
Interest rate swap	(2,349		)	(2,349		)	—		—		(2,349		)

	December 31, 2011
(Dollars in thousands)	Carrying Amount			Estimated Fair Value
Financial assets:
Cash and short-term investments	$	104,367		$	104,367
Securities available for sale	320,774			320,774
Loans held for sale	26,073			27,053
Loans held for investment	981,387			921,351
Agency accounts receivable	217			217
Accrued interest receivable	6,122			6,122
Nonmarketable equity investments	7,380			7,380
Investments in unconsolidated VIEs	3,425			3,425
Mortgage derivative assets	269			269
Financial liabilities:
Noninterest-bearing deposits	231,718			231,718
NOW, MMDA and savings deposits	707,798			707,798
Certificates of deposit	431,947			439,518
Short-term borrowings	4,398			4,398
Other borrowings	43,001			45,193
Junior subordinated debt	30,928			25,204
Agency accounts payable	641			641
Accrued interest payable	1,023			1,023
Mortgage derivative liabilities	291			291
Other financial instruments:
Commitments to extend credit and letters of credit	(4		)	(320		)
Interest rate swap	(1,834		)	(1,834		)