Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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)
	June 30, 2013
	(Dollars in thousands)
Recurring fair value measurements
Assets
Securities available for sale
U.S. Government agency securities	$	19,593	$	—	$	19,593	$	—
Agency mortgage-backed securities	198,301		—		198,301		—
Agency collateralized mortgage obligations	66,096		—		66,096		—
Private mortgage-backed securities	3,036		—		—		3,036
Single issuer trust preferred securities issued by banks	2,244		—		2,244		—
Pooled trust preferred securities issued by banks and insurers	3,617		—		—		3,617
Marketable securities	10,968		10,968		—		—
Loans held for sale	32,497		—		32,497		—
Derivative instruments	20,796		—		20,796		—
Liabilities
Derivative instruments	31,501		—		31,501		—
Total recurring fair value measurements	$	325,647	$	10,968	$	308,026	$	6,653
Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	10,105	$	—	$	—	$	10,105
Other real estate owned	9,211		—		—		9,211
Total nonrecurring fair value measurements	$	19,316	$	—	$	—	$	19,316

	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
Other real estate owned	11,974		—		—		11,974
Total nonrecurring fair value measurements	$	19,791	$	—	$	—	$	19,791

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 March 31, 2013	$	3,292		$	—		$	3,370		$	6,662
Gains and (losses) (realized/unrealized)
Included in earnings	—			—			—			—
Included in other comprehensive income	351			—			(51		)	300
Purchases	—			—			—			—
Sales	—			—			—			—
Issuances	—			—			—			—
Settlements	(26		)	—			(283		)	(309		)
Transfers into (out of) level 3	—			—			—			—
Balance at June 30, 2013	$	3,617		$	—		$	3,036		$	6,653
Balance at January 1, 2012	$	2,820		$	4,210		$	6,110		$	13,140
Gains and (losses) (realized/unrealized)
Included in earnings	—			—			(76		)	(76		)
Included in other comprehensive income	313			703			411			1,427
Purchases	—			—			—			—
Sales	—			—			—			—
Issuances	—			—			—			—
Settlements	(152		)	—			(2,913		)	(3,065		)
Transfers into (out of) level 3	—			(4,913		)	—			(4,913		)
Balance at December 31, 2012	$	2,981		$	—		$	3,532		$	6,513
Gains and (losses) (realized/unrealized)
Included in earnings	—			—			—			—
Included in other comprehensive income	831			—			(89		)	742
Purchases	—			—			—			—
Sales	—			—			—			—
Issuances	—			—			—			—
Settlements	(195		)	—			(407		)	(602		)
Transfers into (out of) level 3	—			—			—			—
Balance at June 30, 2013	$	3,617		$	—		$	3,036		$	6,653

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)
	June 30, 2013
Pooled trust preferred securities	$	3,617	Discounted cash flow methodology	Cumulative Prepayment	0%-76.0%	7.2	%
				Cumulative Default	2.0%-100.0%	18.6	%
				Loss Given Default	85.0% - 100.0%	95.4	%
				Cure Given Default	0% - 75.0%	36.6	%
Private mortgage-backed securities	$	3,036	Multi-dimensional spread tables	Cumulative Prepayment Rate	14.4%-14.5%	14.5	%
				Constant Default Rate	0.8% -20.3%	4.0	%
				Severity	21.0% -52.0%	34.1	%
Impaired loans	$	10,105	Appraisals of collateral (1)
Other real estate owned	$	9,211	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)
	June 30, 2013
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. Treasury securities	$	1,012	$	1,074	—		$	1,074	—
Agency mortgage-backed securities	56,889		58,869		—		58,869		—
Agency collateralized mortgage obligations	159,945		158,211		—		158,211		—
State, county, and municipal securities	916		926		—		926		—
Single issuer trust preferred securities issued by banks	1,510		1,530		—		1,530		—
Corporate debt securities	5,006		5,241		—		5,241		—
Loans, net of allowance for loan losses (b)	4,477,135		4,433,316		—		—		4,433,316
Financial liabilities
Time certificates of deposits (c)	$	709,971	$	713,800	—		$	713,800	—
Federal home loan bank advances and other borrowings (c)	261,456		268,993		—		268,993		—
Wholesale and customer repurchase agreements (c)	191,826		193,497		—		—		193,497
Junior subordinated debentures (d)	74,018		75,805		—		75,805		—
Subordinated debentures (c)	30,000		20,758		—		—		20,758
	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.