Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets measured on a Recurring Basis

The Company’s only financial assets measured at fair value on a recurring basis at December 31, 2013 and 2012 were as follows (dollars in thousands):

	Level 1		Level 2		Level 3
2013
Investment securities available-for-sale	$	—	$	194,481	$	—
2012
Investment securities available-for-sale	$	—	$	257,544	$	—

Fair Value of Financial Assets measured on a Nonrecurring Basis

The following table represents the assets measured at fair value on a nonrecurring basis by the Company at December 31, 2013 and 2012 (dollars in thousands):

	Level 1		Level 2		Level 3
2013
Impaired loans with specific valuation allowances	$	—	$	—	$	8,887
Other real estate owned	—		—		3,144
	$	—	$	—	$	12,031
2012
Impaired loans with specific valuation allowances	$	—	$	—	$	34,383
Other real estate owned	—		—		6,552
MSRs	—		—		1,308
	$	—	$	—	$	42,243

Quantative Information About Level 3 Fair Value Measurements on a Nonrecurring Basis

The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2013 and 2012 (dollars in thousands):

	2013
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	8,887	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	3,144	Market approach	Appraised value less selling costs of 5% to 10%

	2012
	Fair Value Estimate		Valuation Techniques	Unobservable Input
Impaired loans	$	34,383	Market approach	Appraised value less selling costs of 5% to 10% Additional discounts of 5% to 50% to appraised value to reflect liquidation value
Other real estate owned	$	6,552	Market approach	Appraised value less selling costs of 5% to 10%
MSRs	$	1,308	Market approach	Weighted average prepayment speed of 10.5%

Fair Value of Balance Sheet Financial Instruments

The estimated fair values of the Company’s significant on-balance sheet financial instruments at December 31, 2013 and 2012 were approximately as follows (dollars in thousands):

		2013				2012
	Level in Fair Value Hierarchy	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
Cash and cash equivalents	Level 1	$	81,849	$	81,849	$	113,028	$	113,028
Investment securities:
Available-for-sale	Level 2	194,481		194,481		257,544		257,544
Held-to-maturity	Level 2	1,320		1,342		1,813		1,863
FHLB stock	Level 2	9,913		9,913		10,285		10,285
Loans held-for-sale	Level 2	10,359		10,359		2,329		2,329
Loans, net	Level 3	973,618		977,142		829,057		833,399
BOLI	Level 3	36,567		36,567		35,705		35,705
MSRs	Level 3	2,232		2,232		1,308		1,308
Financial liabilities:
Deposits	Level 2	1,167,320		1,167,532		1,076,234		1,076,550
FHLB borrowings	Level 2	27,000		27,000		60,000		64,981