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Fair Value (Tables)
 3 Months Ended
Mar. 31, 2014
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value
The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).
 
 
March 31, 2014
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
1,559

 
$
—

 
$
1,559

Mortgage Backed Securities-residential
 
—

 
194,722

 
—

 
194,722

Mortgage Backed Securities-commercial
 
—

 
27

 
—

 
27

Collateralized mortgage obligations
 
—

 
516,938

 
—

 
516,938

State and municipal
 
—

 
191,376

 
4,035

 
195,411

Collateralized debt obligations
 
—

 
—

 
12,508

 
12,508

TOTAL
 
$
—

 
$
904,622

 
$
16,543

 
$
921,165

Derivative Assets
 
 

 
1,181

 
 

 
 

Derivative Liabilities
 
 

 
(1,181
)
 
 

 
 

 
 
December 31, 2013
 
 
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
U.S. Government agencies
 
$
—

 
$
1,633

 
$
—

 
$
1,633

Mortgage Backed Securities-residential
 
—

 
197,764

 
—

 
197,764

Mortgage Backed Securities-commercial
 
—

 
4,391

 
—

 
4,391

Collateralized mortgage obligations
 
—

 
506,741

 
—

 
506,741

State and municipal
 
—

 
190,462

 
4,525

 
194,987

Collateralized debt obligations
 
—

 
—

 
9,044

 
9,044

TOTAL
 
$
—

 
$
900,991

 
$
13,569

 
$
914,560

Derivative Assets
 
 

 
1,195

 
 

 
 

Derivative Liabilities
 
 

 
(1,195
)
 
 

 
 
Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)
The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2014 and the year ended December 31, 2013. 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
Three Months Ended March 31, 2014
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
$
4,525

 
$
9,044

 
$
13,569

Total realized/unrealized gains or losses
 

 
 

 
 

Included in earnings
—

 
—

 
—

Included in other comprehensive income
—

 
3,857

 
3,857

Transfers
—

 
—

 
—

Settlements
(490
)
 
(393
)
 
(883
)
Ending balance, March 31
$
4,035

 
$
12,508

 
$
16,543

 
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
Year Ended December 31, 2013
 
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
 
$
9,911

 
$
6,122

 
$
16,033

Total realized/unrealized gains or losses
 
 

 
 

 
 

Included in earnings
 
—

 
904

 
904

Included in other comprehensive income
 
—

 
3,155

 
3,155

Transfers
 
(1,186
)
 
—

 
(1,186
)
Settlements
 
(4,200
)
 
(1,137
)
 
(5,337
)
Ending balance, December 31
 
$
4,525

 
$
9,044

 
$
13,569
Quantitative information about recurring and non-recurring Level 3
The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at March 31, 2014.
 
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
4,035

 
Discounted cash flow
 
Discount rate
Probability of default
 
3.05%-5.50% 0%
Other real estate  
 
$
4,806

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
11,669

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
0.00%-50.00%
 
The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2013.
 
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
4,525

 
Discounted cash flow
 
Discount rate
Probability of default
 
3.05%-5.50% 0%
Other real estate  
 
$
5,291

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%
Impaired Loans
 
13,765

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
0.00%-50.00%
Schedule of loans identified as impaired by class of loans
The following tables presents loans identified as impaired by class of loans as of March 31, 2014 and December 31, 2013, which are all considered Level 3.
 
 
March 31, 2014
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
7,550

 
$
2,032

 
$
5,518

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
6,276

 
1,075

 
5,201

Agriculture
 
—

 
—

 
—

All Other Commercial
 
1,030

 
116

 
914

Residential
 
 

 
 

 
 

First Liens
 
36

 
—

 
36

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
14,892

 
$
3,223

 
$
11,669

 
 
December 31, 2013
(Dollar amounts in thousands)
 
Carrying
Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
8,620

 
$
1,612

 
$
7,008

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
7,204

 
1,500

 
5,704

Agriculture
 
—

 
—

 
 

All Other Commercial
 
1,062

 
46

 
1,016

Residential
 
 

 
 

 
 

First Liens
 
37

 
—

 
37

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
 

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
 

 
—

All Other Consumer
 
—

 
 

 
—

TOTAL
 
$
16,923

 
$
3,158

 
$
13,765
Schedule of carrying amount and estimated fair value of financial instruments
The fair value of off-balance sheet items is not considered material.
 
 
March 31, 2014
 
 
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
83,988

 
$
19,545

 
$
64,443

 
$
—

 
$
83,988

Federal funds sold
 
9,791

 
—

 
9,791

 
—

 
9,791

Securities available—for—sale
 
921,165

 
—

 
904,622

 
16,543

 
921,165

Restricted stock
 
21,057

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,763,566

 
—

 
 

 
1,813,799

 
1,813,799

FDIC Indemnification Asset
 
754

 
—

 
754

 
—

 
754

Accrued interest receivable
 
11,451

 
—

 
3,617

 
7,834

 
11,451

Deposits
 
(2,507,014
)
 
—

 
(2,507,882
)
 
—

 
(2,507,882
)
Short—term borrowings
 
(35,710
)
 
—

 
(35,710
)
 
—

 
(35,710
)
Federal Home Loan Bank advances
 
(38,214
)
 
—

 
(39,720
)
 
—

 
(39,720
)
Accrued interest payable
 
(646
)
 
—

 
(646
)
 
—

 
(646
)
 
 
December 31, 2013
 
 
 
 
Carrying
 
Fair Value
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
71,033

 
$
22,455

 
$
48,578

 
$
—

 
$
71,033

Federal funds sold
 
4,276

 
—

 
4,276

 
—

 
4,276

Securities available—for—sale
 
914,560

 
—

 
900,991

 
13,569

 
914,560

Restricted stock
 
21,057

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,771,360

 
—

 
—

 
1,816,726

 
1,816,726

FDIC Indemnification Asset
 
1,055

 
—

 
1,055

 
—

 
1,055

Accrued interest receivable
 
11,554

 
—

 
3,279

 
8,275

 
11,554

Deposits
 
(2,458,791
)
 
—

 
(2,460,197
)
 
—

 
(2,460,197
)
Short—term borrowings
 
(59,592
)
 
—

 
(59,592
)
 
—

 
(59,592
)
Federal Home Loan Bank advances
 
(58,288
)
 
—

 
(60,258
)
 
—

 
(60,258
)
Accrued interest payable
 
(750
)
 
—

 
(750
)
 
—

 
(750
)