Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Tables

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

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at March 31, 2013.

($ in thousands)
Description of Financial Instruments	Fair Value at March 31, 2013		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	$	11,588		—		11,588		—
Mortgage-backed securities		150,773		—		150,773		—
Corporate bonds		3,865		—		3,865		—
Equity securities		3,988		—		3,988		—
Total available for sale securities	$	170,214		—		170,214		—
Nonrecurring
Impaired loans – covered	$	23,608		—		—		23,608
Impaired loans – non-covered		17,634		—		—		17,634
Foreclosed real estate – covered		30,156		—		—		30,156
Foreclosed real estate – non-covered		20,115		—		—		20,115

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2012.

($ 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

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 March 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at March 31, 2013		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	23,608	Appraised value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		17,634	Appraised value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-25%
Foreclosed real estate – covered		30,156	Appraised value	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		20,115	Appraised value	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

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

The carrying amounts and estimated fair values of financial instruments at March 31, 2013 and December 31, 2012 are as follows:

		March 31, 2013				December 31, 2012
($ 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	$	73,205		73,205		96,588		96,588
Due from banks, interest-bearing	Level 1		242,890		242,890		144,919		144,919
Federal funds sold	Level 1		249		249		—		—
Securities available for sale	Level 2		170,214		170,214		167,352		167,352
Securities held to maturity	Level 2		55,649		60,758		56,064		61,496
Presold mortgages in process of settlement	Level 1		4,584		4,584		8,490		8,490
Loans – non-covered, net of allowance	Level 3		2,087,922		2,035,916		2,052,500		1,998,620
Loans – covered, net of allowance	Level 3		258,440		258,440		277,555		277,555
Loans held for sale	Level 2		—		—		30,393		30,393
Accrued interest receivable	Level 1		9,737		9,737		10,201		10,201
FDIC indemnification asset	Level 3		100,594		98,818		102,559		100,396
Bank-owned life insurance	Level 1		27,193		27,193		27,857		27,857
Deposits	Level 2		2,857,567		2,860,592		2,821,360		2,823,989
Borrowings	Level 2		46,394		20,457		46,394		20,981
Accrued interest payable	Level 2		1,118		1,118		1,299		1,299