FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2015

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

Schedule of carrying amount and estimated fair value of financial instruments

						Fair Value Measurement Using
						Quoted Prices		Significant
						in Active		Other			Significant
						Markets for		Observable			Unobservable
	Carrying		Estimated			Identical Assets		Inputs			Inputs
	Amount		Fair Value			(Level 1)		(Level 2)			(Level 3)
	(Dollars in thousands)
March 31, 2015
Financial assets
Cash and due from banks	$	74,743	$	74,743		$	74,743	$	—		$	—
Interest-bearing deposits in other banks	10,478		10,478			10,478		—			—
Investment securities	1,554,079		1,554,844			850		1,541,347			12,647
Loans held for sale	7,206		7,206			—		—			7,206
Net loans and leases	2,896,339		2,852,249			—		68,676			2,783,573
Accrued interest receivable	13,420		13,420			13,420		—			—
Financial liabilities
Deposits:
Noninterest-bearing deposits	1,042,781		1,042,781			1,042,781		—			—
Interest-bearing demand and savings deposits	2,053,821		2,053,821			2,053,821		—			—
Time deposits	1,092,040		1,093,931			—		—			1,093,931
Short-term debt	70,000		70,000			—		70,000			—
Long-term debt	92,785		68,237			—		68,237			—
Accrued interest payable (included in other liabilities)	965		965			965		—			—
Off-balance sheet financial instruments
Commitments to extend credit	743,758		3,719			—		3,719			—
Standby letters of credit and financial guarantees written	20,768		156			—		156			—
Interest rate options	66,696		1,081			—		1,081			—
Forward interest rate contracts	27,457		(233		)	—		(233		)	—
December 31, 2014
Financial assets
Cash and due from banks	$	72,316	$	72,316		$	72,316	$	—		$	—
Interest-bearing deposits in other banks	13,691		13,691			13,691		—			—
Investment securities	1,467,305		1,464,615			877		1,450,643			13,095
Loans held for sale	9,683		9,683			—		—			9,683
Net loans and leases	2,858,158		2,752,420			—		70,743			2,681,677
Accrued interest receivable	13,584		13,584			13,584		—			—
Financial liabilities
Deposits:
Noninterest-bearing deposits	1,034,146		1,034,146			1,034,146		—			—
Interest-bearing demand and savings deposits	2,030,870		2,030,870			2,030,870		—			—
Time deposits	1,045,284		1,047,322			—		—			1,047,322
Short-term debt	38,000		38,000			—		38,000			—
Long-term debt	92,785		42,454			—		42,454			—
Accrued interest payable (included in other liabilities)	1,018		1,018			1,018		—			—
Off-balance sheet financial instruments
Commitments to extend credit	720,255		3,601			—		3,601			—
Standby letters of credit and financial guarantees written	18,797		141			—		141			—
Interest rate options	44,266		444			—		444			—
Forward interest rate contracts	23,919		(62		)	—		(62		)	—

Schedule of balances of assets and liabilities measured at fair value on a recurring basis

			Fair Value at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
March 31, 2015
Available for sale securities:
Debt securities:
States and political subdivisions	$	192,478	$	—	$	179,831	$	12,647
Corporate securities	101,327		—		101,327		—
Mortgage-backed securities:
U.S. Government sponsored entities	787,046		—		787,046		—
Non-agency collateralized mortgage obligations	141,423		—		141,423		—
Non-agency residential mortgage-backed securities	75,363		—		75,363		—
Other	850		850		—		—
Derivatives - Interest rate contracts	848		—		848		—
Total	$	1,299,335	$	850	$	1,285,838	$	12,647
December 31, 2014
Available for sale securities:
Debt securities:
States and political subdivisions	$	191,645	$	—	$	178,550	$	13,095
Corporate securities	100,604		—		100,604		—
Mortgage-backed securities:
U.S. Government sponsored entities	751,558		—		751,558		—
Non-agency collateralized mortgage obligations	184,334		—		184,334		—
Other	877		877		—		—
Derivatives - Interest rate contracts	382		—		382		—
Total	$	1,229,400	$	877	$	1,215,428	$	13,095

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

	Available for Sale States and Political Subdivisions Debt Securities
	(Dollars in thousands)
Balance at December 31, 2014	$	13,095
Principal payments received	(735		)
Unrealized net gain included in other comprehensive income	287
Purchases	—
Balance at March 31, 2015	$	12,647
Balance at December 31, 2013	$	10,518
Principal payments received	(71		)
Unrealized net gain included in other comprehensive income	299
Purchases	1,042
Balance at March 31, 2014	$	11,788

Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis

			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
March 31, 2015
Impaired loans (1)	$	68,676	$	—	$	68,676	$	—
Other real estate (2)	3,349		—		3,349		—
December 31, 2014
Impaired loans (1)	$	70,743	$	—	$	70,743	$	—
Other real estate (2)	2,948		—		2,948		—

(1) Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral.

(2) Represents other real estate that is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.