Fair Value (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014. The impaired loans shown below are those in which the value is based on the underlying collateral value.

($ in thousands)
Description of Financial Instruments	Fair Value at March 31, 2014		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	$	22,296		—		22,296		—
Mortgage-backed securities		148,081		—		148,081		—
Corporate bonds		3,675		—		3,675		—
Equity securities		6,138		—		6,138		—
Total available for sale securities	$	180,190		—		180,190		—
Nonrecurring
Impaired loans – covered	$	14,284		—		—		14,284
Impaired loans – non-covered		13,007		—		—		13,007
Foreclosed real estate – covered		19,504		—		—		19,504
Foreclosed real estate – non-covered		11,740		—		—		11,740

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

($ in thousands)
Description of Financial Instruments	Fair Value at December 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	$	18,245		—		18,245		—
Mortgage-backed securities		147,187		—		147,187		—
Corporate bonds		3,598		—		3,598		—
Equity securities		4,011		—		4,011		—
Total available for sale securities	$	173,041		—		173,041		—
Nonrecurring
Impaired loans – covered	$	15,284		—		—		15,284
Impaired loans – non-covered		13,020		—		—		13,020
Foreclosed real estate – covered		24,497		—		—		24,497
Foreclosed real estate – non-covered		12,251		—		—		12,251

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, 2014, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at March 31, 2014		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	14,284	Appraised value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		13,007	Appraised value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-39%
Foreclosed real estate – covered		19,504	Appraised value	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		11,740	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, 2013, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at December 31, 2013		Valuation Technique	Significant Unobservable Inputs	General Range of Significant Unobservable Input Values
Impaired loans – covered	$	15,284	Appraised value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Impaired loans – non-covered		13,020	Appraised value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-37%
Foreclosed real estate – covered		24,497	Appraised value	Discounts to reflect current market conditions and estimated costs to sell	0-10%
Foreclosed real estate – non-covered		12,251	Appraised value	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-40%

Schedule of the carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2014 and December 31, 2013 are as follows:

		March 31, 2014				December 31, 2013
($ 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	$	219,779		219,779		83,881		83,881
Due from banks, interest-bearing	Level 1		163,489		163,489		136,644		136,644
Federal funds sold	Level 1		821		821		2,749		2,749
Securities available for sale	Level 2		180,190		180,190		173,041		173,041
Securities held to maturity	Level 2		53,937		57,192		53,995		56,700
Presold mortgages in process of settlement	Level 1		4,587		4,587		5,422		5,422
Total loans, net of allowance	Level 3		2,399,150		2,340,855		2,414,689		2,352,834
Accrued interest receivable	Level 1		8,990		8,990		9,649		9,649
FDIC indemnification asset	Level 3		35,504		34,292		48,622		47,032
Bank-owned life insurance	Level 1		44,367		44,367		44,040		44,040
Deposits	Level 2		2,786,724		2,788,007		2,751,019		2,752,375
Borrowings	Level 2		136,394		122,218		46,394		34,795
Accrued interest payable	Level 2		758		758		879		879