Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair values of financial assets and liabilities measured on a recurring basis

The following table presents assets and liabilities that are measured at fair value on a recurring basis as of the dates presented:



	Level 1		Level 2		Level 3		Totals
December 31, 2015
Financial assets:
Securities available for sale:
Obligations of other U.S. Government agencies and corporations	$	—	$	6,200	$	—	$	6,200
Residential mortgage-backed securities:
Government agency mortgage backed securities	—		364,540		—		364,540
Government agency collateralized mortgage obligations	—		168,060		—		168,060
Commercial mortgage-backed securities:
Government agency mortgage backed securities	—		59,759		—		59,759
Government agency collateralized mortgage obligations	—		5,104		—		5,104
Trust preferred securities	—		—		19,469		19,469
Other debt securities	—		19,333		—		19,333
Other equity securities	—		4,340		—		4,340
Total securities available for sale	—		627,336		19,469		646,805
Derivative instruments:
Interest rate swap	—		—		—		—
Interest rate contracts	—		2,544		—		2,544
Interest rate lock commitments	—		4,508		—		4,508
Forward commitments	—		446		—		446
Total derivative instruments	—		7,498		—		7,498
Mortgage loans held for sale	—		225,254		—		225,254
Total financial assets	$	—	$	860,088	$	19,469	$	879,557
Financial liabilities:
Derivative instruments:
Interest rate swap	$	—	$	4,266	$	—	$	4,266
Interest rate contracts	—		2,544		—		2,544
Interest rate lock commitments	—		—		—		—
Forward commitments	—		509		—		509
Total derivative instruments	—		7,319		—		7,319
Total financial liabilities	$	—	$	7,319	$	—	$	7,319



	Level 1		Level 2		Level 3		Totals
December 31, 2014
Financial assets:
Securities available for sale:
Obligations of other U.S. Government agencies and corporations	$	—	$	6,147	$	—	$	6,147
Residential mortgage-backed securities:
Government agency mortgage backed securities	—		296,359		—		296,359
Government agency collateralized mortgage obligations	—		157,436		—		157,436
Commercial mortgage-backed securities:
Government agency mortgage backed securities	—		47,185		—		47,185
Government agency collateralized mortgage obligations	—		5,172		—		5,172
Trust preferred securities	—		—		19,756		19,756
Other debt securities	—		17,930		—		17,930
Other equity securities	—		3,599		—		3,599
Total securities available for sale	—		533,828		19,756		553,584
Derivative instruments:
Interest rate swap	—		—		—		—
Interest rate contracts	—		2,142		—		2,142
Interest rate lock commitments	—		1,584		—		1,584
Forward commitments	—		5		—		5
Total derivative instruments	—		3,731		—		3,731
Mortgage loans held for sale	—		25,628		—		25,628
Total financial assets	$	—	$	563,187	$	19,756	$	582,943
Financial liabilities:
Derivative instruments:
Interest rate swap	$	—	$	3,847	$	—	$	3,847
Interest rate contracts	—		2,143		—		2,143
Interest rate lock commitments	—		—		—		—
Forward commitments	—		303		—		303
Total derivative instruments	—		6,293		—		6,293
Total financial liabilities	$	—	$	6,293	$	—	$	6,293

Reconciliation for assets and liabilities measured at fair value on a recurring basis

The following tables provide a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs:



	Securities available for sale
	Trust preferred securities			Total
Balance at January 1, 2014	$	17,671		$	17,671
Realized (gains) losses included in net income, net of premium amortization	33			33
Unrealized gains included in other comprehensive income	3,216			3,216
Reclassification adjustment	—			—
Sales	—			—
Issues	—			—
Settlements	(1,164		)	(1,164		)
Transfers into Level 3	—			—
Transfers out of Level 3	—			—
Balance at December 31, 2014	$	19,756		$	19,756
Realized (gains) losses included in net income, net of premium amortization	(62		)	(62		)
Unrealized gains included in other comprehensive income	1,439			1,439
Sales	(1,117		)	(1,117		)
Issues	—			—
Settlements	(547		)	(547		)
Transfers into Level 3	—			—
Transfers out of Level 3	—			—
Balance at December 31, 2015	$	19,469		$	19,469

Significant unobservable inputs (Level 3) used in valuation of assets and liabilities measured at fair value on recurring basis

The following table presents information as of December 31, 2015 about significant unobservable inputs (Level 3) used in the valuation of assets and liabilities measured at fair value on a recurring basis:



Financial instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs
Trust preferred securities	$	19,469	Discounted cash flows	Default rate	0-100%

Impaired loans measured at fair value on a nonrecurring basis

Consolidated Balance Sheets as of the dates presented and the level within the fair value hierarchy each is classified:



	Level 1		Level 2		Level 3		Totals
December 31, 2015
Impaired loans	$	—	$	—	$	6,508	$	6,508
OREO	—		—		12,839		12,839
Total	$	—	$	—	$	19,347	$	19,347



	Level 1		Level 2		Level 3		Totals
December 31, 2014
Impaired loans	$	—	$	—	$	12,360	$	12,360
OREO	—		—		4,460		4,460
Total	$	—	$	—	$	16,820	$	16,820

OREO measured at fair value on a nonrecurring basis

The following table presents OREO measured at fair value on a nonrecurring basis that was still held in the Consolidated Balance Sheets as of the dates presented:



	December 31, 2015			December 31, 2014
OREO covered under loss-share agreements:
Carrying amount prior to remeasurement	$	—		$	3,162
Impairment recognized in results of operations	—			(185		)
Increase in FDIC loss-share indemnification asset	—			(742		)
Receivable from other guarantor	—			(422		)
Fair value	$	—		$	1,813
OREO not covered under loss-share agreements:
Carrying amount prior to remeasurement	$	14,726		$	3,513
Impairment recognized in results of operations	(1,887		)	(866		)
Fair value	$	12,839		$	2,647

Significant unobservable inputs (Level 3) used in valuation of assets and liabilities measured at fair value on non recurring basis

The following table presents information as of December 31, 2015 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:



Financial instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs
Impaired loans	$	6,508	Appraised value of collateral less estimated costs to sell	Estimated costs to sell	4-10%
OREO	$	12,839	Appraised value of property less estimated costs to sell	Estimated costs to sell	4-10%

Summarizes differences between fair value and principal balance for mortgage loans held for sale measure at fair value

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



	Aggregate Fair Value		Aggregate Unpaid Principal Balance		Difference
Mortgage loans held for sale measured at fair value	$	225,254	$	219,352	$	5,902
Past due loans of 90 days or more	—		—		—
Nonaccrual loans	—		—		—

Assets and liabilities not measured and reported at fair value on a recurring basis or nonrecurring basis

The carrying amounts and estimated fair values of the Company’s financial instruments, including those assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis, were as follows as of the dates presented:



			Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
December 31, 2015
Financial assets
Cash and cash equivalents	$	211,571	$	211,571	$	—	$	—	$	211,571
Securities held to maturity	458,400		—		473,753		—		473,753
Securities available for sale	646,805		—		627,336		19,469		646,805
Mortgage loans held for sale	225,254		—		225,254		—		225,254
Loans covered under loss-share agreements	93,142		—		—		92,528		92,528
Loans not covered under loss-share agreements, net	5,277,883		—		—		5,208,630		5,208,630
FDIC loss-share indemnification asset	7,149		—		—		7,149		7,149
Mortgage servicing rights	29,642		—		—		33,283		33,283
Derivative instruments	7,498		—		7,498		—		7,498
Financial liabilities
Deposits	$	6,218,602	$	4,723,312	$	1,502,202	$	—	$	6,225,514
Short-term borrowings	422,279		422,279		—		—		422,279
Other long-term borrowings	192		192		—		—		192
Federal Home Loan Bank advances	52,930		—		56,101		—		56,101
Junior subordinated debentures	95,095		—		78,095		—		78,095
Derivative instruments	7,319		—		7,319		—		7,319



			Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
December 31, 2014
Financial assets
Cash and cash equivalents	$	161,583	$	161,583	$	—	$	—	$	161,583
Securities held to maturity	430,163		—		442,488		—		442,488
Securities available for sale	553,584		—		533,828		19,756		553,584
Mortgage loans held for sale	25,628		—		25,628		—		25,628
Loans covered under loss-share agreements	143,041		—		—		143,487		143,487
Loans not covered under loss-share agreements, net	3,844,833		—		—		3,751,727		3,751,727
Mortgage servicing rights	11,662		—		—		12,378		12,378
FDIC loss-share indemnification asset	12,516		—		—		12,516		12,516
Derivative instruments	3,731		—		3,731		—		3,731
Financial liabilities
Deposits	$	4,838,418	$	3,532,266	$	1,309,421	$	—	$	4,841,687
Short-term borrowings	32,403		32,403		—		—		32,403
Other long-term borrowings	237		237		—		—		237
Federal Home Loan Bank advances	61,611		—		92,532		—		92,532
Junior subordinated debentures	94,574		—		80,971		—		80,971
Derivative instruments	6,293		—		6,293		—		6,293