Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

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)
	March 31, 2014
	(Dollars in thousands)
Recurring fair value measurements
Assets
Securities available for sale
U.S. Government agency securities	$	40,924	$	—	$	40,924	$	—
Agency mortgage-backed securities	226,765		—		226,765		—
Agency collateralized mortgage obligations	55,455		—		55,455		—
State, county, and municipal securities	5,450		—		5,450		—
Single issuer trust preferred securities issued by banks	3,017		—		3,017		—
Pooled trust preferred securities issued by banks and insurers	4,967		—		—		4,967
Equity securities	11,680		11,680		—		—
Loans held for sale	6,788		—		6,788		—
Derivative instruments	16,708		—		16,708		—
Liabilities
Derivative instruments	25,240		—		25,240		—
Total recurring fair value measurements	$	346,514	$	11,680	$	329,867	$	4,967
Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	12,096	$	—	$	—	$	12,096
Other real estate owned	7,830		—		—		7,830
Total nonrecurring fair value measurements	$	19,926	$	—	$	—	$	19,926

	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	2,952		—		2,952		—
Pooled trust preferred securities issued by banks and insurers	3,841		—		—		3,841
Equity 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

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			Private Mortgage- Backed Securities			Total
	(Dollars in thousands)
Balance at January 1, 2014	$	3,841		$	—		$	3,841
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	1,162			—			1,162
Settlements	(36		)	—			(36		)
Balance at March 31, 2014	$	4,967		$	—		$	4,967
Balance at January 1, 2013	$	2,981		$	3,532		$	6,513
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	480			(38		)	442
Settlements	(169		)	(124		)	(293		)
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:

	March 31,		December 31,			March 31,	December 31,	March 31,	December 31,
	2014		2013			2014	2013	2014	2013
Valuation Technique	Fair Value				Unobservable Inputs	Range		Weighted Average
	(Dollars in Thousands)
Discounted cash flow methodology
Pooled trust preferred securities	$	4,967	$	3,841	Cumulative prepayment	0% - 75%	0% - 76%	7.0%	7.2%
					Cumulative default	3% - 100%	3% - 100%	16.5%	18.1%
					Loss given default	85% - 100%	85% - 100%	95.9%	95.7%
					Cure given default	0% - 75%	0% - 75%	37.4%	39.9%
Appraisals of collateral (1)
Impaired loans	$	12,096	$	10,328
Other real estate owned	$	7,830	$	7,466

(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
	Carrying 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, 2014
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. Treasury securities	$	1,011	$	1,053	—	$	1,053	—
Agency mortgage-backed securities	175,069		177,336		—	177,336		—
Agency collateralized mortgage obligations	192,293		188,704		—	188,704		—
State, county, and municipal securities	678		689		—	689		—
Single issuer trust preferred securities issued by banks	1,501		1,526		—	1,526		—
Corporate debt securities	5,004		5,219		—	5,219		—
Loans, net of allowance for loan losses (b)	4,753,640		4,738,582		—	—		4,738,582
Financial liabilities
Time certificates of deposits (c)	$	725,286	$	728,262	—	$	728,262	—
Federal Home Loan Bank borrowings (c)	140,228		140,324		—	140,324		—
Customer repurchase agreements and other short-term borrowings (c)	128,485		128,485		—	—		128,485
Wholesale repurchase agreements (c)	50,000		51,132		—	—		51,132
Junior subordinated debentures (d)	73,852		70,895		—	70,895		—
Subordinated debentures (c)	30,000		28,482		—	—		28,482

					Fair Value Measurements at Reporting Date Using
	Carrying 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

(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.