Fair Value (Tables)

9 Months Ended

Sep. 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 September 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 September 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)	September 30, 2012		(Level 1)		(Level 2)		(Level 3)
U.S. Government sponsored entities	$	72,833	$	—	$	72,833	$	—
Mortgage-backed investments	203,659		—		203,659		—
Obligations of states and political subdivisions	63,816		—		63,816		—
Collateralized debt obligations	855		—		—		855
Other debt securities	13,025		—		13,025		—
Total securities available for sale	$	354,188	$	—	$	353,333	$	855
Mortgage derivative assets	862		—		—		862
	$	355,050	$	—	$	353,333	$	1,717
Interest rate swap liability	$	2,653	$	—	$	—	$	2,653
Mortgage derivative liabilities	501		—		—		501
	$	3,154	$	—	$	—	$	3,154

			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 third quarter and first nine 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									Nine Months Ended
	September 30, 2012									September 30, 2012
	Collateralized Debt Obligations			Mortgage Derivatives			Interest Rate Swap			Collateralized Debt Obligations			Mortgage Derivatives			Interest Rate Swap
Beginning Balance	$	850		$	272		$	(2,349	)	$	819		$	(22	)	$	(1,834	)
Total gains or losses (realized/unrealized):
Other-than-temporary impairment included in earnings	(25		)	—			—			(29		)	—			—
Other-than-temporary impairment (included in) transferred from other comprehensive income	25			—			—			21			—			—
Other gains/losses included in other comprehensive income	5			—			(457		)	44			—			(1,269		)
Net swap settlement recorded	—			—			153			—			—			450
IRLC and FSA issuances	—			767			—			—			862			—
IRLC and FSA expirations and fair value changes included in earnings	—			(441		)	—			—			(391		)	—
IRLC transfers into closed loans/FSA transferred on sales	—			(237		)	—			—			(88		)	—
Ending Balance	$	855		$	361		$	(2,653	)	$	855		$	361		$	(2,653	)
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	$	(25	)	$	—		$	(153	)	$	(29	)	$	—		$	(450	)

	Three Months Ended									Nine Months Ended
(Dollars in thousands)	September 30, 2011									September 30, 2011
	Collateralized Debt Obligations			Mortgage Derivatives			Interest Rate Swap			Collateralized Debt Obligations			Mortgage Derivatives		Interest Rate Swap
Beginning Balance	$	946		$	34		$	103		$	934		218		$	817
Total gains or losses (realized/unrealized):
Other-than-temporary impairment included in earnings	(200		)	—			—			(581		)	—		—
Other-than-temporary impairment (included in) transferred from other comprehensive income	71			—			—			214			—		—
Other gains/losses included in other comprehensive income	(87		)	—			(2,001		)	163			—		(2,908		)
Net swap settlement recorded	—			—			169			—			—		362
IRLC and FSA issuances	—			171			—			—			377		—
IRLC and FSA expirations and fair value changes included in earnings	—			81			—			—			(146	)	—
IRLC transfers into closed loans/FSA transferred on sales	—			(155		)	—			—			(318	)	—
Ending Balance	$	730		$	131		$	(1,729	)	$	730		131		$	(1,729	)
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	$	(200	)	$	—		$	(169	)	$	(581	)	—		$	(362	)

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)	September 30, 2012		Techniques	Inputs	Range	Average
Impaired loans	$	21,243	Appraisals from comparable properties	Adjustments for market conditions since appraisal	$2 thousand - $490 thousand	$60 thousand
Loan foreclosures	1,901		Appraisals from comparable properties	Adjustments for market conditions since appraisal	$1 thousand - $91 thousand	$24 thousand
Other real estate	7,503		Appraisals from comparable properties	Adjustments for market conditions since appraisal	$1 thousand - $526 thousand	$95 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)	September 30, 2012			Techniques	Inputs	Range		Average
Collateralized debt obligations	$	855		Discounted cash flow	Discount margin Default rates	15.00% - 25.00% 0.25% - 1.20%		18.15% .57%
Mortgage interest rate lock agreements	665			Discounted cash flow	Pull-through rates	85.00	%	85.00	%
Mortgage forward sale agreements	(304		)	Consensus pricing	Pull-through rates	85.00	%	85.00	%
Interest rate swap	(2,653		)	Discounted cash flow	Discount rate	.31% - .85%		0.50	%

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 September 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)	09/30/12 (a)		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	21,243	$	—	$	—	$	21,243
Loan foreclosures	1,901		—		—		1,901
Other real estate	7,503		—		—		7,503

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				Nine Months Ended
	September 30				September 30
(Dollars in thousands)	2012		2011		2012		2011
Impaired loans (a)	$	1,331	$	1,805	$	6,773	$	6,221
Loan foreclosures (b)	282		1,904		1,785		2,721
Other real estate (c)	645		670		2,281		3,777

(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 September 30, 2012 and December 31, 2011:

							Fair Value Measurements at September 30, 2012, Using
	September 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	$	84,382		$	84,382		$	84,382	$	—	$	—
Securities available for sale	354,188			354,188			—		353,333		855
Loans held for sale	23,548			24,450			—		—		24,450
Loans held for investment	970,671			900,750			—		—		900,750
Agency accounts receivable	322			322			322		—		—
Accrued interest receivable	6,123			6,123			14		1,668		4,441
Nonmarketable equity investments	2,197			2,197			—		—		2,197
Investments in unconsolidated VIEs	3,209			3,209			—		—		3,209
Mortgage derivative assets	862			862			—		—		862
Financial liabilities:
Noninterest-bearing deposits	233,684			233,684			233,684		—		—
NOW, MMDA and savings deposits	720,395			720,395			720,395		—		—
Certificates of deposit	395,395			401,738			—		—		401,738
Short-term borrowings	5,225			5,225			5,225		—		—
Other borrowings	38,984			40,600			—		—		40,600
Junior subordinated debt	30,928			25,224			—		—		25,224
Agency accounts payable	859			859			859		—		—
Accrued interest payable	806			806			51		—		755
Mortgage derivative liabilities	501			501			—		—		501
Other financial instruments:
Commitments to extend credit and letters of credit	(5		)	(340		)	—		—		(340		)
Interest rate swap	(2,653		)	(2,653		)	—		—		(2,653		)

	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		)