FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2015

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

Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows as of the dates indicated:



			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, 2015
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	356	$	356	$	—	$	—
Securities available for sale
U.S. Government agency securities	30,215		—		30,215		—
Agency mortgage-backed securities	210,937		—		210,937		—
Agency collateralized mortgage obligations	63,584		—		63,584		—
State, county, and municipal securities	4,659		—		4,659		—
Single issuer trust preferred securities issued by banks and insurers	2,792		—		2,792		—
Pooled trust preferred securities issued by banks and insurers	1,572		—		—		1,572
Small business administration pooled securities	40,449		—		40,449		—
Equity securities	13,041		13,041		—		—
Loans held for sale	5,990		—		5,990		—
Derivative instruments	23,305		—		23,305		—
Liabilities
Derivative instruments	26,313		—		26,313		—
Total recurring fair value measurements	$	370,587	$	13,397	$	355,618	$	1,572

Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	4,598	$	—	$	—	$	4,598
Other real estate owned and other foreclosed assets	2,159		—		—		2,159
Total nonrecurring fair value measurements	$	6,757	$	—	$	—	$	6,757

	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 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
	December 31, 2015						December 31, 2014						December 31, 2013
	(Dollars in thousands)
	Pooled Trust Preferred Securities			Total			Pooled Trust Preferred Securities			Total			Pooled Trust Preferred Securities			Private Mortgage- Backed Securities			Total
Beginning balance	$	6,321		$	6,321		$	3,841		$	3,841		$	2,981		$	3,532		$	6,513
Gains and (losses) (realized/unrealized)
Included in earnings	—			—			—			—			—			—			—
Included in other comprehensive income	14			14			2,655			2,655			1,132			(64		)	1,068
Sales	(4,679		)	(4,679		)	—			—			—			(2,695		)	(2,695		)
Settlements	(84		)	(84		)	(175		)	(175		)	(272		)	(773		)	(1,045		)
Transfers into (out of) level 3	—			—			—			—			—			—			—
Ending balance	$	1,572		$	1,572		$	6,321		$	6,321		$	3,841		$	—		$	3,841

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

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,
	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	$	1,572	$	6,321	Cumulative prepayment	0% - 64%	0% - 75%	2.7%	7.0%
					Cumulative default	5% - 100%	3% - 100%	15.1%	13.9%
					Loss given default	85% - 100%	85% - 100%	94.2%	96.1%
					Cure given default	0% - 75%	0% - 75%	62.3%	46.7%
Appraisals of collateral (1)
Impaired loans	$	4,598	$	8,196
Other real estate owned and foreclosed assets	$	2,159	$	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.

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, 2015
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,009	$	1,064	$	—	$	1,064	$	—
Agency mortgage-backed securities	167,134		170,375		—		170,375		—
Agency collateralized mortgage obligations	267,348		264,891		—		264,891		—
State, county, and municipal securities	225		227		—		227		—
Single issuer trust preferred securities issued by banks	1,500		1,522		—		1,522		—
Small business administration pooled securities	35,291		35,664		—		35,664		—
Corporate debt securities	5,000		5,006		—		5,006		—
Loans, net of allowance for loan losses(b)	5,491,896		5,422,023		—		—		5,422,023
Financial liabilities
Time certificates of deposits(c)	$	684,830	$	684,370	$	—	$	684,370	$	—
Federal Home Loan Bank borrowings(c)	102,080		102,396		—		102,396		—
Customer repurchase agreements and other short-term borrowings(c)	133,958		133,958		—		—		133,958
Junior subordinated debentures(d)	73,464		74,029		—		74,029		—
Subordinated debentures(c)	35,000		34,781		—		—		34,781

	December 31, 2014
Financial assets	(Dollars in thousands)
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		—
Small business administration pooled securities	9,775		10,074		—		10,074		—
Single issuer trust preferred securities issued by banks	1,500		1,477		—		1,477		—
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 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.