Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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)
	June 30, 2014
	(Dollars in thousands)
Recurring fair value measurements
Assets
Securities available for sale
U.S. Government agency securities	$	41,437	$	—	$	41,437	$	—
Agency mortgage-backed securities	220,055		—		220,055		—
Agency collateralized mortgage obligations	53,272		—		53,272		—
State, county, and municipal securities	5,258		—		5,258		—
Single issuer trust preferred securities issued by banks	2,989		—		2,989		—
Pooled trust preferred securities issued by banks and insurers	5,091		—		—		5,091
Equity securities	11,979		11,979		—		—
Loans held for sale	16,125		—		16,125		—
Derivative instruments	17,850		—		17,850		—
Liabilities
Derivative instruments	24,569		—		24,569		—
Total recurring fair value measurements	$	349,487	$	11,979	$	332,417	$	5,091
Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	3,253	$	—	$	—	$	3,253
Other real estate owned and other foreclosed assets	9,675		—		—		9,675
Total nonrecurring fair value measurements	$	12,928	$	—	$	—	$	12,928

	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 and other foreclosed assets	7,633		—		—		7,633
Total nonrecurring fair value measurements	$	17,961	$	—	$	—	$	17,961

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 March 31, 2014	$	4,967		$	—		$	4,967
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	184			—			184
Settlements	(60		)	—			(60		)
Balance at June 30, 2014	$	5,091		$	—		$	5,091
Balance at January 1, 2013	$	2,981		$	3,532		$	6,513
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	1,132			(64		)	1,068
Sales	—			(2,695		)	(2,695		)
Settlements	(272		)	(773		)	(1,045		)
Balance at December 31, 2013	$	3,841		$	—		$	3,841
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	1,349			—			1,349
Settlements	(99		)	—			(99		)
Balance at June 30, 2014	$	5,091		$	—		$	5,091

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:

	June 30,		December 31,			June 30,	December 31,	June 30,	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	$	5,091	$	3,841	Cumulative prepayment	0% - 75%	0% - 76%	6.9%	7.2%
					Cumulative default	3% - 100%	3% - 100%	16.2%	18.1%
					Loss given default	85% - 100%	85% - 100%	95.9%	95.7%
					Cure given default	0% - 75%	0% - 75%	32.9%	39.9%
Appraisals of collateral (1)
Impaired loans	$	3,253	$	10,328
Other real estate owned	$	9,675	$	7,633

(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)
	June 30, 2014
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. Treasury securities	$	1,011	$	1,068	—	$	1,068	—
Agency mortgage-backed securities	170,217		174,921		—	174,921		—
Agency collateralized mortgage obligations	195,478		193,536		—	193,536		—
State, county, and municipal securities	678		684		—	684		—
Single issuer trust preferred securities issued by banks	1,500		1,527		—	1,527		—
Corporate debt securities	5,004		5,208		—	5,208		—
Loans, net of allowance for loan losses (b)	4,830,962		4,815,375		—	—		4,815,375
Financial liabilities
Time certificates of deposits (c)	$	702,858	$	705,731	—	$	705,731	—
Federal Home Loan Bank borrowings (c)	60,174		60,676		—	60,676		—
Customer repurchase agreements and other short-term borrowings (c)	131,766		131,766		—	—		131,766
Wholesale repurchase agreements (c)	50,000		50,960		—	—		50,960
Junior subordinated debentures (d)	73,797		72,105		—	72,105		—
Subordinated debentures (c)	30,000		28,731		—	—		28,731

					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.