Fair Value (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value

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

			Quoted Prices
			In Active		Significant
			Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2015:
Assets
Derivative financial instruments	$	2,574	$	—	$	2,574	$	—
Loans held for sale	73,055		—		73,055		—
Securities available for sale:
Government-sponsored entities debt	130,835		—		130,835		—
State and municipal obligations	136,699		—		136,699		—
Mortgage-backed securities	570,922		—		570,922		—
Corporate stocks	3,205		2,980		225		—
Total securities available for sale	841,661		2,980		838,681		—
Mortgage servicing rights	25,325		—		—		25,325
	$	942,615	$	2,980	$	914,310	$	25,325
Liabilities
Derivative financial instruments	$	1,228	$	—	$	1,228	$	—
December 31, 2014:
Assets
Derivative financial instruments	$	2,148	$	—	$	2,148	$	—
Loans held for sale	61,934		—		61,934		—
Securities available for sale:
Government-sponsored entities debt	$	148,197	$	—	$	148,197	$	—
State and municipal obligations	137,581		—		137,581		—
Mortgage-backed securities	517,946		—		517,946		—
Corporate stocks	3,042		2,817		225		—
Total securities available for sale	806,766		2,817		803,949		—
Mortgage servicing rights	21,601		—		—		21,601
	$	892,449	$	2,817	$	868,031	$	21,601
Liabilities
Derivative financial instruments	$	1,341	$	—	$	1,341	$	—
June 30, 2014:
Assets
Derivative financial instruments	$	1,494	$	—	$	1,494	$	—
Loans held for sale	56,407		—		56,407		—
Securities available for sale:
Government-sponsored entities debt	139,527		—		139,527		—
State and municipal obligations	142,848		—		142,848		—
Mortgage-backed securities	509,694		—		509,694		—
Corporate stocks	3,672		3,447		225		—
Total securities available for sale	795,741		3,447		792,294		—
Mortgage servicing rights	21,015		—		—		21,015
	$	874,657	$	3,447	$	850,195	$	21,015
Liabilities
Derivative financial instruments	$	1,544	$	—	$	1,544	$	—

Schedule of reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis

(Dollars in thousands)	Assets			Liabilities
Fair value, January 1, 2015	$	21,601		$	—
Servicing assets that resulted from transfers of financial assets	3,921			—
Changes in fair value due to valuation inputs or assumptions	1,539			—
Changes in fair value due to increased principal paydowns	(1,736		)	—
Fair value, June 30, 2015	$	25,325		$	—
Fair value, January 1, 2014	$	20,729		$	—
Servicing assets that resulted from transfers of financial assets	2,054
Changes in fair value due to valuation inputs or assumptions	(692		)
Changes in fair value due to increased principal paydowns	(1,076		)	—
Fair value, June 30, 2014	$	21,015		$	—

Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis

			Quoted Prices
			In Active		Significant
			Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2015:
OREO	$	35,042	$	—	$	—	$	35,042
Non-acquired impaired loans	10,079		—		—		10,079
December 31, 2014:
OREO	$	42,726	$	—	$	—	$	42,726
Non-acquired impaired loans	12,612		—		—		12,612
June 30, 2014:
OREO	$	53,733	$	—	$	—	$	53,733
Non-acquired impaired loans	8,620		—		—		8,620

Quantitative Information about Level 3 Fair Value Measurements

			Weighted Average
			June 30,		December 31,		June 30,
	Valuation Technique	Unobservable Input	2015		2014		2014
Nonrecurring measurements:
Impaired loans	Discounted appraisals	Collateral discounts	4.21	%	5.80	%	4.37	%
OREO	Discounted appraisals	Collateral discounts and estimated costs to sell	17.71	%	21.89	%	12.97	%

Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments

	Carrying		Fair
(Dollars in thousands)	Amount		Value		Level 1		Level 2		Level 3
June 30, 2015
Financial assets:
Cash and cash equivalents	$	593,382	$	593,382	$	593,382	$	—	$	—
Investment securities	860,351		860,806		12,011		848,795		—
Loans held for sale	73,055		73,055		—		73,055		—
Loans, net of allowance for loan losses	5,749,270		5,805,702		—		—		5,805,702
FDIC receivable for loss share agreements	11,035		2,615		—		—		2,615
Accrued interest receivable	16,643		16,643		—		3,605		13,038
Mortgage servicing rights	25,325		25,325		—		—		25,325
Interest rate swap — non-designated hedge	156		156		—		156		—
Other derivative financial instruments (mortgage banking related)	2,418		2,418		—		2,418		—
Financial liabilities:
Deposits	6,667,528		6,372,390		—		6,372,390		—
Federal funds purchased and securities sold under agreements to repurchase	287,903		287,903		—		287,903		—
Other borrowings	55,055		50,714		—		50,714		—
Accrued interest payable	2,489		2,489		—		2,489		—
Interest rate swap — cash flow hedge	806		806		—		806		—
Interest rate swap — non-designated hedge	156		156		—		156		—
Other derivative financial instruments (mortgage banking related)	266		266		—		266		—
Off balance sheet financial instruments:
Commitments to extend credit	—		31,401		—		31,401		—
Standby letters of credit and financial guarantees	—		—		—		—		—
December 31, 2014
Financial assets:
Cash and cash equivalents	$	417,869	$	417,869	$	417,869	$	—	$	—
Investment securities	826,943		827,517		13,560		813,957		—
Loans held for sale	61,934		61,934		—		61,934		—
Loans, net of allowance for loan losses	5,680,688		5,743,017		—		—		5,743,017
FDIC receivable for loss share agreements	22,161		7,150		—		—		7,150
Accrued interest receivable	16,366		16,366		—		3,443		12,923
Mortgage servicing rights	21,601		21,601		—		—		21,601
Interest rate swap — non-designated hedge	172		172		—		172		—
Other derivative financial instruments (mortgage banking related)	1,976		1,976		—		1,976		—
Financial liabilities:
Deposits	6,461,045		6,193,580		—		6,193,580		—
Federal funds purchased and securities sold under agreements to repurchase	221,541		221,541		—		221,541		—
Other borrowings	101,210		98,534		—		98,534		—
Accrued interest payable	4,311		4,311		—		4,311		—
Interest rate swap — cash flow hedge	856		856		—		856		—
Interest rate swap — non-designated hedge	172		172		—		172		—
Other derivative financial instruments (mortgage banking related)	313		313		—		313		—
Off balance sheet financial instruments:
Commitments to extend credit	—		14,759		—		14,759		—
Standby letters of credit and financial guarantees	—		—		—		—		—

	Carrying		Fair
(Dollars in thousands)	Amount		Value		Level 1		Level 2		Level 3
June 30, 2014
Financial assets:
Cash and cash equivalents	$	589,523	$	589,523	$	589,523	$	—	$	—
Investment securities	816,648		817,317		13,965		803,352		—
Loans held for sale	56,407		—		—		56,407		—
Loans, net of allowance for loan losses	5,634,122		5,718,977		—		—		5,718,977
FDIC receivable for loss share agreements	43,766		18,619		—		—		18,619
Accrued interest receivable	15,667		15,667		—		3,496		12,171
Mortgage servicing rights	21,015		21,015		—		—		21,015
Interest rate swap — non-designated hedge	185		185		—		185		—
Other derivative financial instruments (mortgage banking related)	1,309		1,309		—		1,309		—
Financial liabilities:
Deposits	6,576,138		6,316,613		—		6,316,613		—
Federal funds purchased and securities sold under agreements to repurchase	280,595		280,595		—		280,595		—
Other borrowings	101,045		104,810		—		104,810		—
Accrued interest payable	4,282		4,282		—		4,282		—
Interest rate swap — cash flow hedge	943		942		—		942		—
Interest rate swap — non-designated hedge	185		185		—		185		—
Other derivative financial instruments (mortgage banking related)	416		416				416
Off balance sheet financial instruments:
Commitments to extend credit	—		19,872		—		19,872		—
Standby letters of credit and financial guarantees	—		—		—		—		—