Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2015, December 31, 2014 and June 30, 2014:

	June 30, 2015		December 31, 2014		June 30, 2014
	(Dollars in Thousands)
Aggregate Fair Value of Mortgage Loans held for sale	$	108,829	$	94,759	$	81,491
Aggregate Unpaid Principal Balance	$	105,184	$	90,418	$	78,395
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 June 30, 2015, December 31, 2014 and June 30, 2014 (dollars in thousands):

	Fair Value Measurements on a Recurring Basis As of June 30, 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	$	14,746	$	—	$	14,746	$	—
State, county and municipal securities		167,372		—		167,372		—
Corporate debt securities		12,836		—		10,336		2,500
Mortgage-backed securities		667,200		—		667,200		—
Mortgage loans held for sale		108,829		—		108,829		—
Mortgage banking derivative instruments		3,775		—		3,775		—
Total recurring assets at fair value	$	974,758	$	—	$	972,258	$	2,500
Derivative financial instruments	$	1,306	$	—	$	1,306	$	—
Total recurring liabilities at fair value	$	1,306	$	—	$	1,306	$	—

	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 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		—
Mortgage banking derivative instruments		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	$	—

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 June 30, 2015, December 31, 2014 and June 30, 2014 (dollars in thousands):

	Fair Value Measurements on a Nonrecurring Basis As of June 30, 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	$	29,228	$	—	$	—	$	29,228
Other real estate owned		11,069		—		—		11,069
Purchased, non-covered other real estate owned		13,112		—		—		13,112
Covered other real estate owned		12,626		—		—		12,626
Total nonrecurring assets at fair value	$	54,966	$	—	$	—	$	54,966

	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 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
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	$	90,853	$	—	$	—	$	90,853

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 June 30, 2015
Nonrecurring:
Impaired loans	$	29,228	Third party appraisals and discounted cash flows	Collateral discounts and discount rates	4% - 75%		24	%
Other real estate owned	$	11,069	Third party appraisals, Sales contracts, Broker price opinions	Collateral discounts and estimated costs to sell	10%		10	%
Purchased non-covered other real estate owned	$	13,112	Third party appraisals	Collateral discounts and estimated costs to sell	10% - 85%		19	%
Covered other real estate owned	$	12,626	Third party appraisals	Collateral discounts and estimated costs to sell	10% - 70%		12	%
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 June 30, 2014
Nonrecurring:
Impaired loans	$	35,289	Third party appraisals and discounted cash flows	Collateral discounts and discount rates	4% - 90%		27	%
Purchased non-covered real estate owned	$	16,598	Third party appraisals	Collateral discounts and estimated costs to sell	21% - 70%		23	%
Covered real estate owned	$	38,426	Third party appraisals	Collateral discounts and estimated costs to sell	10% - 90%		11	%
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 June 30, 2015 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(Dollars in Thousands)
Financial assets:
Cash and due from banks	$	115,413	$	115,413	$	—	$	—	$	115,413
Federal funds sold and interest-bearing accounts		239,804		239,804		—		—		239,804
Loans, net		3,407,609		—		—		3,428,008		3,428,008
FDIC loss-share receivable		14,957		—		—		5,295		5,295
Accrued interest receivable		17,648		17,648		—		—		17,648
Financial liabilities:
Deposits	$	4,511,547	$	—	$	4,513,218	$	—	$	4,513,218
Securities sold under agreements to repurchase		75,066		75,066		—		—		75,066
Other borrowings		39,000		—		39,000		—		39,000
Accrued interest payable		1,239		1,239		—		—		1,239
Subordinated deferrable interest debentures		69,325		—		50,924		—		50,924

			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 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		—		—		36,182		36,182
Accrued interest receivable		15,711		15,711		—		—		15,711
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
Accrued interest payable		1,423		1,423		—		—		1,423
Subordinated deferrable interest debentures		64,842		—		45,864		—		45,864