Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	763	$	763	$	—	$	—
Securities available for sale
U.S. Government agency securities	30,322		—		30,322		$	—
Agency mortgage-backed securities	207,011		—		207,011		—
Agency collateralized mortgage obligations	77,157		—		77,157		—
State, county, and municipal securities	4,656		—		4,656		—
Single issuer trust preferred securities issued by banks and insurers	2,233		—		2,233		—
Pooled trust preferred securities issued by banks and insurers	1,500		—		—		1,500
Small business administration pooled securities	40,791		—		40,791		—
Equity securities	14,557		14,557		—		—
Loans held for sale	7,588		—		7,588		—
Derivative instruments	41,048		—		41,048		—
Liabilities
Derivative instruments	43,620		—		43,620		—
Total recurring fair value measurements	$	384,006	$	15,320	$	367,186	$	1,500

Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	4,048	$	—	$	—	$	4,048
Other real estate owned and other foreclosed assets	1,720		—		—		1,720
Total nonrecurring fair value measurements	$	5,768	$	—	$	—	$	5,768



			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

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 March 31, 2016			Three Months Ended March 31, 2015
	(Dollars in thousands)
Pooled Trust Preferred Securities
Beginning balance	$	1,572		$	6,321
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	(71		)	(4		)
Settlements	(1		)	(45		)
Ending balance	$	1,500		$	6,272

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
	2016		2015			2016	2015	2016	2015
Valuation Technique	Fair Value				Unobservable Inputs	Range		Weighted Average
	(Dollars in thousands)
Discounted cash flow methodology
Pooled trust preferred securities	$	1,500	$	1,572	Cumulative prepayment	0% - 64%	0% - 64%	2.7%	2.7%
					Cumulative default	5% - 100%	5% - 100%	14.3%	15.1%
					Loss given default	85% - 100%	85% - 100%	94.3%	94.2%
					Cure given default	0% - 75%	0% - 75%	65.2%	62.3%
Appraisals of collateral (1)
Impaired loans	$	4,048	$	4,598
Other real estate owned and foreclosed assets	$	1,720	$	2,159


(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, 2016
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,008	$	1,092	$	—	$	1,092	$	—
Agency mortgage-backed securities	161,452		167,575		—		167,575		—
Agency collateralized mortgage obligations	258,620		261,479		—		261,479		—
State, county, and municipal securities	225		225		—		225		—
Single issuer trust preferred securities issued by banks	1,500		1,517		—		1,517		—
Small business administration pooled securities	34,836		35,876		—		35,876		—
Loans, net of allowance for loan losses(b)	5,528,751		5,485,914		—		—		5,485,914
Financial liabilities
Time certificates of deposits(c)	$	657,197	$	659,092	$	—	$	659,092	$	—
Federal Home Loan Bank borrowings(c)	50,840		52,114		—		52,114		—
Customer repurchase agreements and other short-term borrowings(c)	134,568		134,568		—		—		134,568
Junior subordinated debentures(d)	73,257		72,338		—		72,338		—
Subordinated debentures(c)	34,600		35,627		—		—		35,627



					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, 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
Wholesale repurchase agreements(c)	—		—		—		—		—
Junior subordinated debentures(d)	73,306		74,029		—		74,029		—
Subordinated debentures(c)	34,589		34,781		—		—		34,781


(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.