Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

The following table sets forth the Company’s assets, as of the dates indicated, that are accounted for at fair value.


	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
June 30, 2015:
Investment securities AFS⁽¹⁾:
Obligations of state and political subdivisions	$	0	$	488,158	$	18,757	$	506,915
U.S. Government agency securities		0		260,753		0		260,753
Corporate obligations		0		3,574		0		3,574
CRA qualified investment fund		1,020		0		0		1,020

Total investment securities AFS		1,020		752,485		18,757		772,262
Impaired non-purchased loans and leases		0		0		12,807		12,807
Impaired purchased loans		0		0		12,347		12,347
Foreclosed assets		0		0		25,973		25,973

Total assets at fair value	$	1,020	$	752,485	$	69,884	$	823,389


December 31, 2014:
Investment securities AFS⁽¹⁾:
Obligations of state and political subdivisions	$	0	$	553,808	$	19,401	$	573,209
U.S. Government agency securities		0		251,233		0		251,233
Corporate obligations		0		654		0		654

Total investment securities AFS		0		805,695		19,401		825,096
Impaired non-purchased loans and leases		0		0		19,480		19,480
Impaired purchased loans		0		0		14,040		14,040
Foreclosed assets		0		0		37,775		37,775

Total assets at fair value	$	0	$	805,695	$	90,696	$	896,391


June 30, 2014:
Investment securities AFS⁽¹⁾:
Obligations of state and political subdivisions	$	0	$	595,965	$	20,600	$	616,565
U.S. Government agency securities		0		258,311		0		258,311
Corporate obligations		0		685		0		685

Total investment securities AFS		0		854,961		20,600		875,561
Impaired non-purchased loans and leases		0		0		16,240		16,240
Impaired purchased loans		0		0		21,205		21,205
Foreclosed assets		0		0		56,356		56,356

Total assets at fair value	$	0	$	854,961	$	114,401	$	969,362

(1)	Does not include $10.0 million at June 30, 2015; $14.2 million at December 31, 2014 and $16.6 million at June 30, 2014 of FHLB and FNBB equity securities that do not have readily determinable fair values and are carried at cost.

Schedule of Information Related to Level 3 Non-Recurring Fair Value Measurements

The following table presents information related to Level 3 non-recurring fair value measurements as of the date indicated.


Description	Fair Value at June 30, 2015		Technique	Unobservable Inputs
(Dollars in thousands)
Impaired non-purchased loans and leases	$	12,807	Third party appraisal⁽¹⁾ or discounted cash flows	1.	Management discount based on underlying collateral characteristics and market conditions
				2.	Life of loan

Impaired purchased loans	$	12,347	Third party appraisal⁽¹⁾ and/or discounted cash flows	1.	Management discount based on underlying collateral characteristics and market conditions
				2.	Life of loan

Foreclosed assets	$	25,973	Third party appraisal,⁽¹⁾ broker price opinions and/or discounted cash flows	1.	Management discount based on asset characteristics and market conditions
				2.	Discount rate
				3.	Holding period

(1)	The Company utilizes valuation techniques consistent with the market, cost, and income approaches, or a combination thereof in determining fair value.

Assets Measured at Fair Value on Recurring Basis Utilizing Level 3 Inputs

The following table presents additional information for the periods indicated about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value.


	Investment Securities AFS
	(Dollars in thousands)

Balance – January 1, 2015	$	19,401
Total realized gains (losses) included in earnings		0
Total unrealized gains (losses) included in comprehensive income		(271	)
Paydowns and maturities		(373	)
Sales		0
Transfers in and/or out of Level 3		0

Balance – June 30, 2015	$	18,757


Balance – January 1, 2014	$	18,682
Total realized gains (losses) included in earnings		0
Total unrealized gains (losses) included in comprehensive income		403
Acquired		1,907
Paydowns and maturities		(392	)
Sales		0
Transfers in and/or out of Level 3		0

Balance – June 30, 2014	$	20,600