FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

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 statements, were as follows:

			Fair Value Measurements at June 30, 2014 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and due from banks	$	80,986	$	80,986	$	—	$	—	$	80,986
Federal funds sold and interest-bearing accounts	$	44,800	$	44,800	$	—	$	—	$	44,800
Loans, net	$	2,745,897	$	—	$	2,754,953	$	—	$	2,754,953
FDIC loss-share receivable	$	49,180	$	—	$	—	$	46,242	$	46,242
Financial liabilities:
Deposits		3,389,035		—		3,389,880		—		3,389,880
Securities sold under agreements to repurchase		51,109		51,109		—		—		51,109
Other borrowings		100,293		—		100,293		—		100,293
Subordinated deferrable interest debentures		64,842		—		45,864		—		45,864

			Fair Value Measurements at December 31, 2013 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and due from banks	$	62,955	$	62,955	$	—	$	—	$	62,995
Federal funds sold and interest-bearing accounts	$	204,984	$	204,984	$	—	$	—	$	204,984
Loans, net	$	2,392,521	$	—	$	2,404,909	$	—	$	2,404,909
FDIC loss-share receivable	$	65,441	$	—	$	—	$	61,317	$	61,317
Financial liabilities:
Deposits		2,999,231		—		3,000,061		—		3,000,061
Securities sold under agreements to repurchase		83,516		83,516		—		—		83,516
Other borrowings		194,572		—		194,572		—		194,572
Subordinated deferrable interest debentures		55,466		—		36,277		—		36,277

			Fair Value Measurements at June 30, 2013 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and due from banks	$	50,343	$	50,343	$	—	$	—	$	50,343
Federal funds sold and interest-bearing accounts	$	43,904	$	43,904	$	—	$	—	$	43,904
Loans, net	$	1,930,373	$	—	$	1,956,198	$	—	$	1,956,198
FDIC loss-share receivable	$	105,513	$	—	$	—	$	99,558	$	99,558
Financial liabilities:
Deposits		2,443,103		—		2,444,263		—		2,444,263
Securities sold under agreements to repurchase		19,142		19,412		—		—		19,412
Subordinated Deferrable Interest Debentures		42,269		—		23,231		—		23,231

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, 2014, December 31, 2013 and June 30, 2013 (dollars in thousands):

	Fair Value Measurements on a Recurring Basis As of June 30, 2014
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. government agencies	$	14,445	$	—	$	14,445	$	—
State, county and municipal securities		145,780		—		145,780		—
Corporate debt securities		10,958		—		8,958		2,000
Mortgage-backed securities		364,447		—		364,447		—
Mortgage loans held for sale		81,491		—		81,491		—
IRLCs and forward contracts		2,625		—		2,625		—
Total recurring assets at fair value	$	619,746	$	—	$	617,746	$	2,000
Derivative financial instruments	$	1,142	$	—	$	1,142	$	—
Total recurring liabilities at fair value	$	1,142	$	—	$	1,142	$	—

	Fair Value Measurements on a Recurring Basis As of December 31, 2013
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. government agencies	$	13,926	$	—	$	13,926	$	—
State, county and municipal securities		112,754		—		112,754		—
Collateralized debt obligations		1,480		1,480		—		—
Corporate debt securities		10,325		—		8,325		2,000
Mortgage-backed securities		347,750		182,461		165,289		—
Mortgage loans held for sale		67,278		—		67,278		—
IRLCs and forward contracts		1,180		—		1,180		—
Total recurring assets at fair value	$	554,693	$	183,941	$	368,752	$	2,000
Derivative financial instruments	$	370	$	—	$	370	$	—
Total recurring liabilities at fair value	$	370	$	—	$	370	$	—
	Fair Value Measurements on a Recurring Basis As of June 30, 2013
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. government agencies	$	14,335	$	—	$	14,335	$	—
State, county and municipal securities		112,759		2,447		110,312		—
Corporate debt securities		10,090		—		8,090		2,000
Mortgage-backed securities		178,984		—		178,984		—
Mortgage loans held for sale		62,580		—		62,580		—
IRLCs and forward contracts		1,600		—		1,600		—
Total recurring assets at fair value	$	380,348	$	2,447	$	375,901	$	2,000
Derivative financial instruments	$	916	$	—	$	916	$	—
Total recurring liabilities at fair value	$	916	$	—	$	916	$	—

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, 2014, December 31, 2013 and June 30, 2013 (dollars in thousands):

	Fair Value Measurements on a Nonrecurring Basis As of June 30, 2014
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans carried at fair value	$	35,829	$	—	$	—	$	35,829
Other real estate owned		35,373		—		—		35,373
Purchased, non-covered other real estate owned		16,598		—		—		16,598
Covered other real estate owned		38,426		—		—		38,426
Total nonrecurring assets at fair value	$	126,226	$	—	$	—	$	126,226

	Fair Value Measurements on a Nonrecurring Basis As of December 31, 2013
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans carried at fair value	$	42,546	$	—	$	—	$	42,546
Other real estate owned		33,351		—		—		33,351
Purchased, non-covered other real estate owned		4,276		—		—		4,276
Covered other real estate owned		45,893		—		—		45,893
Total nonrecurring assets at fair value	$	126,066	$	—	$	—	$	126,066
	Fair Value Measurements on a Nonrecurring Basis As of June 30, 2013
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans carried at fair value	$	44,754	$	—	$	—	$	44,754
Other real estate owned		39,885		—		—		39,885
Covered other real estate owned		62,178		—		—		62,178
Total nonrecurring assets at fair value	$	146,817	$	—	$	—	$	146,817

Summary of Significant Unobservable Inputs Used in Fair Value Measurement of Level 3 Assets and Liabilities

The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.

Measurements	Fair Value at June 30, 2014		Valuation Technique	Unobservable Inputs	Range
(Dollars in Thousands)
Nonrecurring:
Impaired loans	$	35,289	Third party appraisals and discounted cash flows	Collateral discounts and discount rates	4.00% - 75.00%
Other real estate owned	$	35,373	Third party appraisals	Collateral discounts and estimated costs to sell	10.00% - 74.00%
Purchased non-covered other real estate owned	$	16,598	Third party appraisals	Collateral discounts and estimated costs to sell	21.00% - 70.00%
Covered real estate owned	$	38,426	Third party appraisals	Collateral discounts and estimated costs to sell	10.00% - 90.00%
Recurring:
Investment securities available for sale	$	2,000	Discounted par values	Credit quality of underlying issuer	0.00%