Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

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 Reporting Date 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)
	March 31, 2013
	(Dollars in thousands)
Recurring fair value measurements
Assets
Securities available for sale
U.S. Government agency securities	$	20,736	$	—	$	20,736	$	—
Agency mortgage-backed securities	222,577		—		222,577		—
Agency collateralized mortgage obligations	72,307		—		72,307		—
Private mortgage-backed securities	3,370		—		—		3,370
Single issuer trust preferred securities issued by banks	2,273		—		2,273		—
Pooled trust preferred securities issued by banks and insurers	3,292		—		—		3,292
Marketable securities	11,138		11,138		—		—
Loans held for sale	36,790		—		36,790		—
Derivative instruments	26,707		—		26,707		—
Liabilities
Derivative instruments	41,374		—		41,374		—
Total recurring fair value measurements	$	357,816	$	11,138	$	340,016	$	6,662
Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	7,060	$	—	$	—	$	7,060	$	(738	)
Other real estate owned	11,645		—		—		11,645		—
Total nonrecurring fair value measurements	$	18,705	$	—	$	—	$	18,705	$	(738	)

	December 31, 2012
	(Dollars in thousands)
Recurring fair value measurements
Assets
Securities available for sale
U.S. government agency securities	$	20,822	$	—	$	20,822	$	—
Agency mortgage-backed securities	221,425		—		221,425		—
Agency collateralized mortgage obligations	68,376		—		68,376		—
Private mortgage-backed securities	3,532		—		—		3,532
Single issuer trust preferred securities issued by banks	2,240		—		2,240		—
Pooled trust preferred securities issued by banks and insurers	2,981		—		—		2,981
Marketable securities	9,910		9,910		—		—
Loans held for sale	48,187		—		48,187		—
Derivative instruments	30,528		—		30,528		—
Liabilities
Derivative instruments	46,793		—		46,793		—
Total recurring fair value measurements	$	361,208	$	9,910	$	344,785	$	6,513
Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	7,817	$	—	$	—	$	7,817	$	(1,284	)
Other real estate owned	11,974		—		—		11,974		—
Total nonrecurring fair value measurements	$	19,791	$	—	$	—	$	19,791	$	(1,284	)

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 January 1, 2012	$	2,820		$	4,210		$	6,110		$	13,140
Gains and losses (realized/unrealized)
Included in earnings	—			—			—			—
Included in other comprehensive income	129			703			154			986
Purchases	—			—			—			—
Sales	—			—			—			—
Issuances	—			—			—			—
Settlements	(10		)	—			(910		)	(920		)
Transfers into (out of) level 3	—			(4,913		)	—			(4,913		)
Balance at March 31, 2012	$	2,939		$	—		$	5,354		$	8,293
Balance at January 1, 2013	$	2,981		$	—		$	3,532		$	6,513
Gains and losses (realized/unrealized)
Included in earnings	—			—			—			—
Included in other comprehensive income	480			—			(38		)	442
Purchases	—			—			—			—
Sales	—			—			—			—
Issuances	—			—			—			—
Settlements	(169		)	—			(124		)	(293		)
Transfers into (out of) level 3	—			—			—			—
Balance at March 31, 2013	$	3,292		$	—		$	3,370		$	6,662

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 for the periods indicated:

	Fair Value		Valuation Technique(s)	Unobservable Inputs	Range	Weighted Average
	(Dollars in thousands)
	March 31, 2013
Pooled trust preferred securities	$	3,292	Discounted cash flow methodology	Cumulative Prepayment	0%-76.0%	7.8	%
				Cumulative Default	3.0%-100.0%	19.2	%
				Loss Given Default	85.0% - 100.0%	95.1	%
				Cure Given Default	0% - 75.0%	30.8	%
Private mortgage-backed securities	$	3,370	Multi-dimensional spread tables	Cumulative Prepayment Rate	14.4%-14.5%	14.5	%
				Constant Default Rate	0.9% -20.3%	4.0	%
				Severity	20.0% -45.0%	32.3	%
Impaired loans	$	7,060	Appraisals of collateral (1)
Other real estate owned	$	11,645	Appraisals of collateral (1)
	December 31, 2012
Pooled trust preferred securities	$	2,981	Discounted cash flow methodology	Cumulative Prepayment	0%-76.0%	7.5	%
				Cumulative Default	3.0%-100.0%	19.6	%
				Loss Given Default	85.0% - 100.0%	94.9	%
				Cure Given Default	0% - 75.0%	33.8	%
Private mortgage-backed securities	$	3,532	Multi-dimensional spread tables	Cumulative Prepayment Rate	10.3%-14.5%	13.9	%
				Constant Default Rate	0.9% -20.4%	4.0	%
				Severity	20.0% -55.0%	33.6	%
Impaired loans	$	7,817	Appraisals of collateral (1)
Other real estate owned	$	11,974	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)
	March 31, 2013
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. Treasury securities	$	1,013	$	1,126	—		$	1,126	—
Agency mortgage-backed securities	63,897		67,595		—		67,595		—
Agency collateralized mortgage obligations	136,745		138,907		—		138,907		—
State, county, and municipal securities	916		930		—		930		—
Single issuer trust preferred securities issued by banks	1,513		1,530		—		1,530		—
Corporate debt securities	5,006		5,322		—		5,322		—
Loans, net of allowance for loan losses (b)	4,435,572		4,410,461		—		—		4,410,461
Financial liabilities
Time certificates of deposits (c)	$	768,266	$	774,108	—		$	774,108	—
Federal home loan bank advances and other borrowings (c)	267,091		275,970		—		275,970		—
Wholesale and customer repurchase agreements (c)	179,618		181,752		—		—		181,752
Junior subordinated debentures (d)	74,073		74,905		—		74,905		—
Subordinated debentures (c)	30,000		22,084		—		—		22,084
	December 31, 2012
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. Treasury securities	$	1,013	$	1,134	$	—	$	1,134	$	—
Agency mortgage-backed securities	72,360		76,593		—		76,593		—
Agency collateralized mortgage obligations	97,507		100,380		—		100,380		—
State, county, and municipal securities	915		926		—		926		—
Single issuer trust preferred securities issued by banks	1,516		1,526		—		1,526		—
Corporate debt securities	5,007		5,265		—		5,265		—
Loans, net of allowance for loan losses (b)	4,467,177		4,462,580		—		—		4,462,580
Financial liabilities
Time certificates of deposits (c)	$	753,125	$	759,516	$	—	$	759,516	$	—
Federal home loan bank advances and other borrowings (c)	283,569		293,580		—		293,580		—
Wholesale and customer repurchase agreements (c)	203,359		201,189		—		—		201,189
Junior subordinated debentures (d)	74,127		74,416		—		74,416		—
Subordinated debentures (c)	30,000		22,762		—		—		22,762

(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.