Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Difference Between Fair Value and Principal Balance for Mortgage Loans Held for Sale Measured at Fair Value

The following table summarizes the difference between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of March 31, 2015, December 31, 2014 and March 31, 2014:

	March 31, 2015		December 31, 2014		March 31, 2014
	(Dollars in Thousands)
Aggregate Fair Value of Mortgage Loans held for sale	$	73,796	$	94,759	$	51,693
Aggregate Unpaid Principal Balance	$	70,905	$	90,418	$	49,959
Past due loans of 90 days or more	$	—	$	—	$	—
Nonaccrual loans	$	—	$	—	$	—

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 March 31, 2015, December 31, 2014 and March 31, 2014 (dollars in thousands):

	Fair Value Measurements on a Recurring Basis As of March 31, 2015
	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	$	14,984	$	—	$	14,984	$	—
State, county and municipal securities		159,064		—		159,064		—
Corporate debt securities		10,935		—		8,435		2,500
Mortgage-backed securities		425,347		—		425,347		—
Mortgage loans held for sale		73,796		—		73,796		—
Mortgage banking derivative instruments		4,006		—		4,006		—
Total recurring assets at fair value	$	688,132	$	—	$	685,632	$	2,500
Derivative financial instruments	$	1,805	$	—	$	1,805	$	—
Mortgage banking derivative instruments		548		—		548		—
Total recurring liabilities at fair value	$	2,353	$	—	$	2,353	$	—

	Fair Value Measurements on a Recurring Basis As of December 31, 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	$	14,678	$	—	$	14,678	$	—
State, county and municipal securities		141,375		—		141,375		—
Corporate debt securities		11,040		—		8,540		2,500
Mortgage-backed securities		374,712		8,248		366,464		—
Mortgage loans held for sale		94,759		—		94,759		—
Mortgage banking derivative instruments		1,757		—		1,757		—
Total recurring assets at fair value	$	638,321	$	8,248	$	627,573	$	2,500
Derivative financial instruments	$	1,315	$	—	$	1,315	$	—
Mortgage banking derivative instruments		249		—		249		—
Total recurring liabilities at fair value	$	1,564	$	—	$	1,564	$	—

	Fair Value Measurements on a Recurring Basis As of March 31, 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	$	14,145	$	—	$	14,145	$	—
State, county and municipal securities		111,574		—		111,574		—
Corporate debt securities		10,383		—		8,383		2,000
Mortgage-backed securities		320,611		—		320,611		—
Mortgage loans held for sale		51,693		—		51,693		—
Mortgage banking derivative instruments		2,528		—		2,528		—
Total recurring assets at fair value	$	510,934	$	—	$	508,934	$	2,000
Derivative financial instruments	$	675	$	—	$	675	$	—
Total recurring liabilities at fair value	$	675	$	—	$	675	$	—

Summary of Fair Value Measurements of Assets Measured at Fair Value on Non-Recurring Basis

The following table presents the fair value measurements of assets measured at fair value on a non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy as of March 31, 2015, December 31, 2014 and March 31, 2014 (dollars in thousands):

	Fair Value Measurements on a Nonrecurring Basis As of March 31, 2015
	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	$	28,867	$	—	$	—	$	28,867
Purchased, non-covered other real estate owned		13,818		—		—		13,818
Covered other real estate owned		16,089		—		—		16,089
Total nonrecurring assets at fair value	$	58,774	$	—	$	—	$	58,774

	Fair Value Measurements on a Nonrecurring Basis As of December 31, 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	$	30,479	$	—	$	—	$	30,479
Purchased, non-covered other real estate owned		15,585		—		—		15,585
Covered other real estate owned		19,907		—		—		19,907
Total nonrecurring assets at fair value	$	65,971	$	—	$	—	$	65,971

	Fair Value Measurements on a Nonrecurring Basis As of March 31, 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	$	41,253	$	—	$	—	$	41,253
Purchased, non-covered other real estate owned		3,864		—		—		3,864
Covered other real estate owned		42,636		—		—		42,636
Total nonrecurring assets at fair value	$	87,753	$	—	$	—	$	87,753

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:

	Fair Value		Valuation Technique	Unobservable Inputs	Range of Discounts	Weighted Average Discount
As of March 31, 2015
Nonrecurring:
Impaired loans	$	28,867	Third party appraisals and discounted cash flows	Collateral discounts and discount rates	0% - 70%		24	%
Purchased non-covered real estate owned	$	13,818	Third party appraisals	Collateral discounts and estimated costs to sell	10% - 96%		16	%
Covered real estate owned	$	16,089	Third party appraisals	Collateral discounts and estimated costs to sell	10% - 70%		9	%
Recurring:
Investment securities available for sale	$	2,500	Discounted par values	Credit quality of underlying issuer	0%		0	%
As of December 31, 2014
Nonrecurring:
Impaired loans	$	30,479	Third party appraisals and discounted cash flows	Collateral discounts and discount rates	0% - 50%		20	%
Purchased non-covered real estate owned	$	15,585	Third party appraisals	Collateral discounts and estimated costs to sell	10% - 96%		20	%
Covered real estate owned	$	19,907	Third party appraisals	Collateral discounts and estimated costs to sell	10% - 90%		11	%
Recurring:
Investment securities available for sale	$	2,500	Discounted par values	Credit quality of underlying issuer	0%		0	%
As of March 31, 2014
Nonrecurring:
Impaired loans	$	41,253	Third party appraisals and discounted cash flows	Collateral discounts and discount rates	0% - 75%		26	%
Purchased non-covered real estate owned	$	3,864	Third party appraisals	Collateral discounts and estimated costs to sell	15% - 57%		17	%
Covered real estate owned	$	42,636	Third party appraisals	Collateral discounts and estimated costs to sell	10% - 92%		12	%
Recurring:
Investment securities available for sale	$	2,000	Discounted par values	Credit quality of underlying issuer	0%		0	%

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 March 31, 2015 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and due from banks	$	80,142	$	80,142	$	—	$	—	$	80,142
Federal funds sold and interest-bearing accounts		126,157		126,157		—		—		126,157
Loans, net		2,837,538		—		—		2,885,524		2,885,524
FDIC loss-share receivable		23,312		—		—		9,990		9,990
Accrued interest receivable		15,332		15,332		—		—		15,332
Financial liabilities:
Deposits	$	3,480,231	$	—	$	3,481,470	$	—	$	3,481,470
Securities sold under agreements to repurchase		55,520		55,520		—		—		55,520
Other borrowings		43,851		—		43,851		—		43,851
Accrued interest payable		1,177		1,177		—		—		1,177
Subordinated deferrable interest debentures		65,567		—		47,055		—		47,055

			Fair Value Measurements at December 31, 2014 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and due from banks	$	78,026	$	78,026	$	—	$	—	$	78,026
Federal funds sold and interest-bearing accounts		92,323		92,323		—		—		92,323
Loans, net		2,783,763		—		—		2,785,627		2,785,627
FDIC loss-share receivable		31,351		—		—		18,764		18,764
Accrued interest receivable		17,023		17,023		—		—		17,023
Financial liabilities:
Deposits	$	3,431,149	$	—	$	3,432,059	$	—	$	3,432,059
Securities sold under agreements to repurchase		73,310		73,310		—		—		73,310
Other borrowings		78,881		—		78,881		—		78,881
Accrued interest payable		1,382		1,382		—		—		1,382
Subordinated deferrable interest debentures		65,325		—		46,564		—		46,564

			Fair Value Measurements at March 31, 2014 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and due from banks	$	71,387	$	71,387	$	—	$	—	$	71,387
Federal funds sold and interest-bearing accounts		48,677		48,677		—		—		48,677
Loans, net		2,441,348		—		—		2,461,372		2,461,372
FDIC loss-share receivable		53,181		—		—		39,930		39,930
Accrued interest receivable		13,849		13,849		—		—		13,849
Financial liabilities:
Deposits	$	3,010,647	$	—	$	3,011,383	$	—	$	3,011,383
Securities sold under agreements to repurchase		49,974		49,974		—		—		49,974
Other borrowings		59,677		—		59,677		—		59,677
Accrued interest payable		1,357		1,357		—		—		1,357
Subordinated deferrable interest debentures		55,628		—		36,504		—		36,504