Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and Liabilities Measured at Fair Value at the periods indicated were as follows:

			Fair Value Measurements at the End of the Reporting Period Using:
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
	September 30, 2012
	(Dollars in Thousands)
RECURRING FAIR VALUE MEASUREMENTS:
ASSETS
SECURITIES AVAILABLE FOR SALE:
U.S. Government Agency Securities	$	20,907	$	—	$	20,907	$	—
Agency Mortgage-Backed Securities	211,745		—		211,745		—
Agency Collateralized Mortgage Obligations	73,372		—		73,372		—
Private Mortgage-Backed Securities	4,112		—		—		4,112
Pooled Trust Preferred Securities Issued by Banks and Insurers	3,052		—		—		3,052
Marketable Equity Securities	9,968		9,968		—		—
LOANS HELD FOR SALE	42,393		—		42,393		—
DERIVATIVE INSTRUMENTS	32,672		—		32,672		—
LIABILITIES
DERIVATIVE INSTRUMENTS	51,364		—		51,364		—
TOTAL RECURRING FAIR VALUE MEASUREMENTS	$	346,857	$	9,968	$	420,719	$	7,164
NONRECURRING FAIR VALUE MEASUREMENTS:
ASSETS
COLLATERAL DEPENDENT IMPAIRED LOANS	$	7,450	$	—	$	—	$	7,450	$	(676	)
OTHER REAL ESTATE OWNED	8,751		—		—		8,751		—
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS	$	16,201	$	—	$	—	$	16,201	$	(676	)

	December 31, 2011
	(Dollars in Thousands)
RECURRING FAIR VALUE MEASUREMENTS:
ASSETS
TRADING SECURITIES	$	8,240	$	8,240	$	—	$	—
SECURITIES AVAILABLE FOR SALE:
Agency Mortgage-Backed Securities	238,391		—		238,391		—
Agency Collateralized Mortgage Obligations	53,801		—		53,801		—
Private Mortgage-Backed Securities	6,110		—		—		6,110
Single Issuer Trust Preferred Securities Issued by Banks	4,210		—		—		4,210
Pooled Trust Preferred Securities Issued by Banks and Insurers	2,820		—		—		2,820
LOANS HELD FOR SALE	20,500		—		20,500		—
DERIVATIVE INSTRUMENTS	25,841		—		25,841		—
LIABILITIES
DERIVATIVE INSTRUMENTS	44,407		—		44,407		—
TOTAL RECURRING FAIR VALUE MEASUREMENTS	$	315,506	$	8,240	$	294,126	$	13,140
NONRECURRING FAIR VALUE MEASUREMENTS:
ASSETS
IMPAIRED LOANS (1)	$	36,861	$	—	$	—	$	36,861	$	(2,682	)
OTHER REAL ESTATE OWNED	6,658		—		—		6,658		—
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS	$	43,519	$	—	$	—	$	43,519	$	(2,682	)

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

The table below presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). These instruments were valued using pricing models and discounted cash flow methodologies.

	Securities Available for Sale:
	Pooled Trust Preferred Securities			Single Trust Preferred Securities			Private Mortgage- Backed Securities			Total
	(Dollars in Thousands)
BALANCE AT JUNE 30, 2012	$	2,754		$	—		$	4,739		$	7,493
GAINS AND LOSSES (REALIZED/UNREALIZED):
Included in Earnings	—			—			—			—
Included in Other Comprehensive Income	332			—			50			382
SETTLEMENTS	(34		)	—			(677		)	(711		)
TRANSFERS INTO(OUT OF) OF LEVEL 3	—			—			—			—
BALANCE AT SEPTEMBER 30, 2012	$	3,052		$	—		$	4,112		$	7,164
BALANCE AT JANUARY 1, 2011	$	2,828		$	4,221		$	10,254		$	17,303
GAINS AND LOSSES (REALIZED/UNREALIZED):
Included in Earnings	(8		)	—			(235		)	(243		)
Included in Other Comprehensive Income	37			(11		)	49			75
SETTLEMENTS	(37		)	—			(3,958		)	(3,995		)
BALANCE AT DECEMBER 31, 2011	$	2,820		$	4,210		$	6,110		$	13,140
GAINS AND LOSSES (REALIZED/UNREALIZED):
Included in Earnings	—			—			(76		)	(76		)
Included in Other Comprehensive Income	286			703			280			1,269
SETTLEMENTS	(54		)	—			(2,202		)	(2,256		)
TRANSFERS INTO(OUT OF) OF LEVEL 3	—			(4,913		)	—			(4,913		)
BALANCE AT SEPTEMBER 30, 2012	$	3,052		$	—		$	4,112		$	7,164

Investments in securities that are classified as level 3

The following table sets forth certain unobservable inputs regarding the Company’s investment in securities that are classified as Level 3:

	Fair Value at September 30, 2012		Valuation Technique(s)	Unobservable Inputs	Range	Weighted Average
				(Dollars in Thousands)
POOLED TRUST PREFERRRED SECURITIES	$	3,052	Discounted cash flow methodology	Cumulative Prepayment	0%-100%	4.3%
				Cumulative Default	4.0%-100%	20.0%
				Loss Given Default	85% - 100%	94.9%
				Cure Given Default	0% - 75%	31.9%
PRIVATE MORTGAGE-BACKED SECURITIES	$	4,112	Multi-dimensional spread tables	Cumulative Prepayment Rate	10.3%-14.5%	13.9%
				Constant Default Rate	0.8% -20.5%	3.6%
				Severity	25.0% -62.5%	38.9%
IMPAIRED LOANS	$	7,450	Appraisals of collateral (1)
OTHER REAL ESTATE OWNED	$	8,751	Appraisals of collateral (1)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.

The estimated fair values and related carrying amounts for assets and liabilities

The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated:

					Fair Value Measurements at Reporting Date Using
	Book Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2012
	(Dollars in Thousands)
FINANCIAL ASSETS
SECURITIES HELD TO MATURITY (a):
U.S. Treasury Securities	$	1,013	$	1,143	—		$	1,143	—
Agency Mortgage-Backed Securities	81,523		86,762		—		86,762		—
Agency Collateralized Mortgage Obligations	91,845		94,769		—		94,769		—
State, County, and Municipal Securities	915		929		—		929		—
Single Issuer trust preferred Securities Issued by Banks	6,538		6,601		—		6,601		—
Corporate Debt Securities	5,008		5,250		—		5,250		—
LOANS, NET OF ALLOWANCE FOR LOAN LOSSES (b)	4,006,389		4,009,976		—		—		4,009,976
FINANCIAL LIABILITIES
TIME CERTIFICATES OF DEPOSITS (c)	$	630,419	$	636,197	—		$	636,197	—
FEDERAL HOME LOAN BANK ADVANCES (c)	189,464		189,785		—		189,785		—
WHOLESALE AND CUSTOMER REPURCHASE AGREEMENTS (c)	208,578		206,199		—		—		206,199
JUNIOR SUBORDINATED DEBENTURES (d)	61,857		61,238		—		61,238		—
SUBORDINATED DEBENTURES (c)	30,000		23,375		—		—		23,375
	December 31, 2011
	(Dollars in Thousands)
FINANCIAL ASSETS
SECURITIES HELD TO MATURITY (a):
U.S. Treasury Securities	$	1,014	$	1,117	$	—	$	1,117	$	—
Agency Mortgage-Backed Securities	109,553		113,959		—		113,959		—
Agency Collateralized Mortgage Obligations	77,804		80,298		—		80,298		—
State, County, and Municipal Securities	3,576		3,610		—		3,610		—
Single Issuer trust preferred Securities Issued by Banks	8,000		7,346		—		7,346		—
Corporate Debt Securities	5,009		5,164		—		5,164		—
LOANS, NET OF ALLOWANCE FOR LOAN LOSSES (b)	3,746,130		3,807,938		—		—		3,807,938
FINANCIAL LIABILITIES
TIME CERTIFICATES OF DEPOSITS (c)	$	630,162	$	639,333	$	—	$	639,333	$	—
FEDERAL HOME LOAN BANK ADVANCES (c)	229,701		233,880		—		233,880		—
WHOLESALE AND CUSTOMER REPURCHASE AGREEMENTS (c)	216,128		219,857		—		—		219,857
JUNIOR SUBORDINATED DEBENTURES (d)	61,857		60,620		—		60,620		—
SUBORDINATED DEBENTURES (c)	30,000		27,217		—		—		27,217

(a) The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analyses.

(b) Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows.

(c) Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

(d) Fair value was determined based upon market prices of securities with similar terms and maturities.