Disclosures Regarding Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

	March 31, 2013
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale
State and municipal	$	—	$	11,116	$	—	$	11,116
Collateralized mortgage obligations (federal agencies)		—		129,361		—		129,361
Other mortgage-backed (federal agencies)		—		61,767		—		61,767
SBA loan-backed (federal agency)		43,180		20,374		—		63,554
Derivative financial instruments		—		350		—		350
Total assets measured at fair value on a recurring basis	$	43,180	$	222,968	$	—	$	266,148
Liabilities
Derivative financial instruments	$	—	$	61	$	—	$	61
	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets
Investment securities available for sale
State and municipal	$	—	$	11,530	$	—	$	11,530
Collateralized mortgage obligations (federal agencies)		14,057		109,451		—		123,508
Other mortgage-backed (federal agencies)		—		63,817		—		63,817
SBA loan-backed (federal agency)		44,683		20,964		—		65,647
Derivative financial instruments		—		370		—		370
Total assets measured at fair value on a recurring basis	$	58,740	$	206,132	$	—	$	264,872
Liabilities
Derivative financial instruments	$	—	$	5	$	—	$	5

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

There were no liabilities measured at fair value on a nonrecurring basis at March 31, 2013 or December 31, 2012.

	March 31, 2013
	Level 1		Level 2		Level 3		Total
Assets
Mortgage loans held for sale	$	—	$	7,056	$	—	$	7,056
Other loans held for sale		—		800		—		800
Impaired loans in gross loans		—		6,049		1,073		7,122
Foreclosed real estate and repossessed personal property		105		650		8,528		9,283
Long-lived assets held for sale		—		—		685		685
Total assets measured at fair value on a nonrecurring basis	$	105	$	14,555	$	10,286	$	24,946
	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets
Mortgage loans held for sale	$	—	$	6,114	$	—	$	6,114
Other loans held for sale		800		—		—		800
Impaired loans in gross loans		—		6,285		189		6,474
Foreclosed real estate and repossessed personal property		—		817		9,163		9,980
Long-lived assets held for sale		—		—		685		685
Total assets measured at fair value on a nonrecurring basis	$	800	$	13,216	$	10,037	$	24,053

Summary of Significant Unobservable Inputs Used in Fair Value Measurements for Level 3 Assets Measured at Fair Value on a Nonrecurring Basis

The following table summarizes the significant unobservable inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis at March 31, 2013 (in thousands).

	Fair value at March  31, 2013		Valuation technique	Significant unobservable inputs
Assets
Impaired loans in gross loans	$	1,073	Internal assessment of collateral value	Adjustments to estimated value based on recent sales of comparable collateral
Foreclosed real estate and repossessed personal property		8,528	Appraisals of collateral value	Adjustments to appraisal for age of comparable sales
Long-lived assets held for sale		685	Internal valuation	Appraisals and/or sales of comparable properties

Foreclosed Real Estate and Repossessed Personal Property

In addition, any income taxes or other expenses that would be incurred in an actual sale or settlement are not taken into consideration in the fair values presented.

	Carrying amount		Fair value
March 31, 2013
Financial instruments—assets Loans (1)	$	709,812	$	716,675
Financial instruments—liabilities Deposits		972,196		968,767
December 31, 2012
Financial instruments—assets Loans (1)	$	716,977	$	724,005
Financial instruments—liabilities Deposits		1,023,242		1,020,446

(1) Includes Loans, net less impaired loans valued based on the fair value of underlying collateral or contracted sales price which are included in the “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” table.