Fair Value (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Tables

Financial instruments that were measured at fair value on a recurring and nonrecurring basis

($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	11,596		—		11,596		—
Mortgage-backed securities		146,926		—		146,926		—
Corporate bonds		3,813		—		3,813		—
Equity securities		5,017		—		5,017		—
Total available for sale securities	$	167,352		—		167,352		—
Nonrecurring
Impaired loans – covered	$	12,234		—		—		12,234
Impaired loans – non-covered		21,021		—		—		21,021
Foreclosed real estate – covered		47,290		—		—		47,290
Foreclosed real estate – non-covered		26,285		—		—		26,285

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2011.

($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities	$	34,665		—		34,665		—
Mortgage-backed securities		124,105		—		124,105		—
Corporate bonds		12,488		—		12,488		—
Equity securities		11,368		399		10,969		—
Total available for sale securities	$	182,626		399		182,227		—
Nonrecurring
Impaired loans – covered	$	21,288		—		—		21,288
Impaired loans – non-covered		80,541		—		—		80,541
Foreclosed real estate – covered		85,272		—		—		85,272
Foreclosed real estate – non-covered		37,023		—		—		37,023

Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at December 31, 2012		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	12,234	Appraised value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-49%
Impaired loans – non-covered		21,021	Appraised value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-21%
Foreclosed real estate – covered		47,290	Appraised value	Discounts to reflect current market conditions and estimated costs to sell	0-29%
Foreclosed real estate – non-covered		26,285	Appraised value	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

The carrying amounts and estimated fair values of financial instruments

		December 31, 2012				December 31, 2011
($ in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Cash and due from banks, noninterest-bearing	Level 1	$	96,588		96,588		80,341		80,341
Due from banks, interest-bearing	Level 1		144,919		144,919		135,218		135,218
Federal funds sold	Level 1		—		—		608		608
Securities available for sale	Level 2		167,352		167,352		182,626		182,626
Securities held to maturity	Level 2		56,064		61,496		57,988		62,754
Presold mortgages in process of settlement	Level 1		8,490		8,490		6,090		6,090
Loans - non-covered, net of allowance	Level 3		2,052,500		1,998,620		2,033,542		1,987,979
Loans - covered, net of allowance	Level 3		277,555		277,555		355,426		355,426
Loans held for sale	Level 2		30,393		30,393		—		—
Accrued interest receivable	Level 1		10,201		10,201		11,779		11,779
FDIC indemnification asset	Level 3		102,559		100,396		121,677		121,004
Bank-owned life insurance	Level 1		27,857		27,857		2,207		2,207
Deposits	Level 2		2,821,360		2,823,989		2,755,037		2,759,504
Securities sold under agreements to repurchase	Level 2		—		—		17,105		17,105
Borrowings	Level 2		46,394		20,981		133,925		106,333
Accrued interest payable	Level 2		1,299		1,299		1,872		1,872