FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

ssets and liabilities measured at fair value on a recurring and nonrecurring basis at December 31 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)
	December 31, 2013
	(Dollars in thousands)
Recurring fair value measurements
Assets
Securities available for sale
U.S. Government agency securities	$	40,449	$	—	$	40,449	$	—
Agency mortgage-backed securities	234,591		—		234,591		—
Agency collateralized mortgage obligations	58,153		—		58,153		—
State, county, and municipal securities	5,412				5,412
Single issuer trust preferred securities issued by banks and insurers	2,952		—		2,952		—
Pooled trust preferred securities issued by banks and insurers	3,841		—		—		3,841
Marketable securities	11,464		11,464		—		—
Loans held for sale	8,882		—		8,882		—
Derivative instruments	16,965		—		16,965		—
Liabilities
Derivative Instruments	26,395		—		26,395		—
Total recurring fair value measurements	$	356,314	$	11,464	$	341,009	$	3,841
Nonrecurring fair value measurements
Assets

Collateral dependent impaired loans	$	10,328	$	—	$	—	$	10,328
Other real estate owned	7,466		—		—		7,466
Total nonrecurring fair value measurements	$	17,794	$	—	$	—	$	17,794
	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 and insurers	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 of Assets on Recurring Basis Using Significant Unobservable Inputs

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. The following table provides a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated:

	Securities Available for Sale
	Pooled Trust Preferred Securities			Single Issuer Trust Preferred Security			Private Mortgage- Backed Securities			Total
	(Dollars in thousands)
Year-to-date
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	313			703			411			1,427
Purchases	—			—			—			—
Sales	—			—			—			—
Issuances	—			—			—			—
Settlements	(152		)	—			(2,913		)	(3,065		)
Transfers in to (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	1,132			—			(64		)	1,068
Purchases	—			—			—			—
Sales	—			—			(2,695		)	(2,695		)
Issuances	—			—			—			—
Settlements	(272		)	—			(773		)	(1,045		)
Transfers into (out of) level 3	—			—			—			—
Balance at December 31, 2013	$	3,841		$	—		$	—		$	3,841

Schedule of Unobservable Inputs for Level 3 Securities

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

	December 31,					December 31,		December 31,
	2013		2012			2013	2012	2013	2012
Valuation Technique	Fair Value				Unobservable Inputs	Range		Weighted Average
	(Dollars in Thousands)
Discounted cash flow methodology
Pooled trust preferred securities	$	3,841	$	2,981	Cumulative prepayment	0% - 76%	0% - 76%	7.2%	7.5%
					Cumulative default	3% - 100%	3% - 100%	18.1%	19.6%
					Loss given default	85% - 100%	85% - 100%	95.7%	94.9%
					Cure given default	0% - 75%	0% - 75%	39.9%	33.8%
Multi-dimensional spreads table
Private mortgage-backed securities	$	—	$	3,532	Cumulative prepayment rate	—%	10% - 15%	—%	13.9%
					Constant default rate	—%	1% - 20%	—%	4.0%
					Severity	—%	20% - 55%	—%	33.6%
Appraisals of collateral (1)
Impaired loans	$	10,328	$	7,817
Other real estate owned	$	7,466	$	11,974

(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.

Schedule of Fair Values and Related Carrying Amounts by Balance Sheet Grouping

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)
	December 31, 2013
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,011	$	1,042	$	—	$	1,042	$	—
Agency mortgage-backed securities	155,067		155,951		—		155,951		—
Agency collateralized mortgage obligations	187,388		182,036		—		182,036		—
State, county, and municipal securities	678		685		—		685		—
Single issuer trust preferred securities issued by banks	1,503		1,526		—		1,526		—
Corporate debt securities	5,005		5,215		—		5,215		—
Loans, net of allowance for loan losses(b)	4,665,068		4,655,920		—		—		4,655,920
Financial liabilities
Time certificates of deposits(c)	$	743,628	$	746,908	$	—	$	746,908	$	—
Federal Home Loan Bank borrowings(c)	140,294		140,321		—		140,321		—
Customer repurchase agreements and other short-term borrowings(c)	154,288		154,349		—		—		154,349
Wholesale repurchase agreements(c)	50,000		51,298		—		—		51,298
Junior subordinated debentures(d)	73,906		67,481		—		67,481		—
Subordinated debentures(c)	30,000		28,396		—		—		28,396
	December 31, 2012
Financial assets	(Dollars in thousands)
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 borrowings(c)	271,569		281,580		—		281,580		—
Customer repurchase agreements and other short-term borrowings(c)	165,359		165,359		—		—		165,359
Wholesale repurchase agreements(c)	50,000		47,830		—		—		47,830
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 analysis.

(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.