Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

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)
	September 30, 2015
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	454	$	454	$	—	$	—
Securities available for sale
U.S. Government agency securities	37,587		—		37,587		$	—
Agency mortgage-backed securities	212,921		—		212,921		—
Agency collateralized mortgage obligations	52,075		—		52,075		—
State, county, and municipal securities	4,671		—		4,671		—
Single issuer trust preferred securities issued by banks and insurers	2,841		—		2,841		—
Pooled trust preferred securities issued by banks and insurers	1,586		—		—		1,586
Small business administration pooled securities	41,156		—		41,156		—
Equity securities	12,955		12,955		—		—
Loans held for sale	11,476		—		11,476		—
Derivative instruments	30,216		—		30,216		—
Liabilities
Derivative instruments	34,191		—		34,191		—
Total recurring fair value measurements	$	373,747	$	13,409	$	358,752	$	1,586

Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	6,011	$	—	$	—	$	6,011
Other real estate owned and other foreclosed assets	2,532		—		—		2,532
Total nonrecurring fair value measurements	$	8,543	$	—	$	—	$	8,543



			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, 2014
	(Dollars in thousands)
Recurring fair value measurements
Assets
Securities available for sale
U.S. Government agency securities	$	41,486	$	—	$	41,486	$	—
Agency mortgage-backed securities	217,678		—		217,678		—
Agency collateralized mortgage obligations	63,035		—		63,035		—
State, county, and municipal securities	5,223				5,223
Single issuer trust preferred securities issued by banks and insurers	2,909		—		2,909		—
Pooled trust preferred securities issued by banks and insurers	6,321		—		—		6,321
Equity securities	11,902		11,902		—		—
Loans held for sale	6,888		—		6,888		—
Derivative instruments	22,688		—		22,688		—
Liabilities
Derivative instruments	27,950		—		27,950		—
Total recurring fair value measurements	$	350,180	$	11,902	$	331,957	$	6,321

Nonrecurring fair value measurements:
Assets
Collateral dependent impaired loans	$	8,196	$	—	$	—	$	8,196
Other real estate owned and other foreclosed assets	7,743		—		—		7,743
Total nonrecurring fair value measurements	$	15,939	$	—	$	—	$	15,939

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), which were valued using pricing models and discounted cash flow methodologies, as of the dates indicated:



	Securities Available for Sale:
	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014
	(Dollars in thousands)
Pooled Trust Preferred Securities
Beginning balance	$	1,595		$	5,091
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	12			318
Settlements	(21		)	(23		)
Ending balance	$	1,586		$	5,386

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:



	September 30		December 31			September 30	December 31	September 30	December 31
	2015		2014			2015	2014	2015	2014
Valuation Technique	Fair Value				Unobservable Inputs	Range		Weighted Average
	(Dollars in thousands)
Discounted cash flow methodology
Pooled trust preferred securities	$	1,586	$	6,321	Cumulative prepayment	0% - 65%	0% - 75%	2.5%	7.0%
					Cumulative default	5% - 100%	3% - 100%	14.8%	13.9%
					Loss given default	85% - 100%	85% - 100%	94.2%	96.1%
					Cure given default	0% - 75%	0% - 75%	63.8%	46.7%
Appraisals of collateral (1)
Impaired loans	$	6,011	$	8,196
Other real estate owned and foreclosed assets	$	2,532	$	7,743


(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)
	September 30, 2015
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,009	$	1,084	$	—	$	1,084	$	—
Agency mortgage-backed securities	172,684		178,402		—		178,402		—
Agency collateralized mortgage obligations	230,820		231,910		—		231,910		—
State, county, and municipal securities	225		229		—		229		—
Single issuer trust preferred securities issued by banks	1,500		1,496		—		1,496		—
Small business administration pooled securities	36,901		37,613		—		37,613		—
Corporate debt securities	5,000		5,042		—		5,042		—
Loans, net of allowance for loan losses(b)	5,436,905		5,406,492		—		—		5,406,492
Financial liabilities
Time certificates of deposits(c)	$	711,263	$	713,473	$	—	$	713,473	$	—
Federal Home Loan Bank borrowings(c)	104,133		104,989		—		104,989		—
Customer repurchase agreements and other short-term borrowings(c)	138,449		138,449		—		—		138,449
Junior subordinated debentures(d)	73,520		70,925		—		70,925		—
Subordinated debentures(c)	35,000		35,282		—		—		35,282



					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, 2014
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,010	$	1,073	$	—	$	1,073	$	—
Agency mortgage-backed securities	159,522		164,944		—		164,944		—
Agency collateralized mortgage obligations	198,220		196,584		—		196,584		—
State, county, and municipal securities	424		428		—		428		—
Single issuer trust preferred securities issued by banks	1,500		1,477		—		1,477		—
Small business administration pooled securities	9,775		10,074		—		10,074		—
Corporate debt securities	5,002		5,119		—		5,119		—
Loans, net of allowance for loan losses(b)	4,907,437		4,875,283		—		—		4,875,283
Financial liabilities
Time certificates of deposits(c)	$	649,620	$	651,180	$	—	$	651,180	$	—
Federal Home Loan Bank borrowings(c)	70,080		70,208		—		70,208		—
Customer repurchase agreements and other short-term borrowings(c)	147,890		147,890		—		—		147,890
Wholesale repurchase agreements(c)	50,000		50,510		—		—		50,510
Junior subordinated debentures(d)	73,685		70,045		—		70,045		—
Subordinated debentures(c)	65,000		64,198		—		—		64,198


(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.