BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2012

Carrying Amount and Estimated Fair Value of Financial Instruments

The carrying amount and estimated fair value of the Company’s financial instruments, not shown elsewhere in these financial instruments, were as follows:

			Fair Value Measurements at June 30, 2012 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Loans, net	$	1,941,028	$	—	$	1,975,541	$	—	$	1,975,541
Financial liabilities:
Deposits		2,544,672		—		2,546,740		—		2,546,740
Other borrowings		3,810		3,835		—		—		3,835

	December 31, 2011				June 30, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in Thousands)
Financial assets:
Loans, net	$	1,868,419	$	1,877,320	$	1,812,029	$	1,818,152
Financial liabilities:
Deposits		2,591,566		2,593,113		2,511,363		2,513,459
Other borrowings		20,000		20,936		—		—

Fair Value Measurements of Assets and Liabilities Measured on Recurring Basis

The following table presents the fair value measurements of assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of June 30, 2012 and 2011 and December 31, 2011 (dollars in thousands):

	Fair Value Measurements on a Recurring Basis As of June 30, 2012
	Fair Value			Level 1		Level 2			Level 3
U.S. government agencies	$	8,898		$	—	$	8,898		$	—
State, county and municipal securities		100,327			5,432		94,895			—
Corporate debt securities		11,506			250		9,256			2,000
Mortgage backed securities		246,249			5,086		241,163			—
Mortgage loans held for sale		19,659			—		19,659			—
Total recurring assets at fair value	$	386,639		$	10,768	$	373,871		$	2,000
Derivative financial instruments	$	2,970		$	—	$	2,970			—
Total recurring liabilities at fair value	$	2,970		$	—	$	2,970		$	—
	Fair Value Measurements on a Recurring Basis As of December 31, 2011
	Fair Value			Level 1		Level 2			Level 3
U.S. government agencies	$	14,937		$	—	$	14,937		$	—
State, county and municipal securities		79,133			2,966		76,167			—
Corporate debt securities		11,401			—		9,401			2,000
Mortgage backed securities		234,496			3,302		231,194			—
Derivative financial instruments		(2,049	)		—		(2,049	)		—
Total recurring assets at fair value	$	337,918		$	6,268	$	329,650		$	2,000
	Fair Value Measurements on a Recurring Basis As of June 30, 2011
	Fair Value			Level 1		Level 2			Level 3
U.S. government agencies	$	24,259		$	—	$	24,259		$	—
State, county and municipal securities		60,546			2,367		58,179			—
Corporate debt securities		9,722			—		7,722			2,000
Mortgage backed securities		239,849			8,153		231,696			—
Derivative financial instruments		243			—		243			—
Total recurring assets at fair value	$	334,619		$	10,520	$	322,099		$	2,000

Valuation Methodologies for Instruments Measured at Fair Value on Nonrecurring Basis

The following table is a presentation of the valuation methodologies used for instruments measured at fair value on a nonrecurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy as of June 30, 2012 and 2011 and December 31, 2011 (dollars in thousands):

	Fair Value Measurements on a Nonrecurring Basis As of June 30, 2012
	Fair Value		Level 1		Level 2		Level 3
Impaired loans carried at fair value	$	60,277	$	—	$	60,277	$	—
Other real estate owned		40,018		—		—		40,018
Covered loans		601,737		—		—		601,737
Covered other real estate owned		83,467		—		—		83,467
Total non-recurring assets at fair value	$	785,499	$	—	$	60,277	$	725,222
	Fair Value Measurements on a Nonrecurring Basis As of December 31, 2011
	Fair Value		Level 1		Level 2		Level 3
Impaired loans carried at fair value	$	70,296	$	—	$	70,296	$	—
Other real estate owned		50,301		—		—		50,301
Covered loans		571,489		—		—		571,489
Covered other real estate owned		78,617		—		—		78,617
Total nonrecurring assets at fair value	$	770,703	$	—	$	70,296	$	700,407
	Fair Value Measurements on a Nonrecurring Basis As of June 30, 2011
	Fair Value		Level 1		Level 2		Level 3
Impaired loans carried at fair value	$	60,545	$	—	$	60,545	$	—
Other real estate owned		61,533		—		—		61,533
Covered loans		486,489		—		—		486,489
Covered other real estate owned		63,583		—		—		63,583
Total nonrecurring assets at fair value	$	672,150	$	—	$	60,545	$	611,605

Reconciliation of Unobservable Input for Level 3 Fair Value Assets

Below is the Company’s reconciliation of Level 3 assets as of June 30, 2012 (dollars in thousands):

	Investment Securities Available for Sale		Other Real Estate Owned			Covered Loans			Covered Other Real Estate
Beginning balance January 1, 2012	$	2,000	$	50,301		$	571,489		$	78,617
Total gains/(losses) included in net income		—		(8,065	)		—			—
Purchases, sales, issuances, and settlements, net		—		(12,609	)		50,232			(15,134	)
Transfers in or out of Level 3		—		10,391			(19,984	)		19,984
Ending balance June 30, 2012	$	2,000	$	40,018		$	601,737		$	83,467