Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring 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)
	June 30, 2017
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	1,293	$	1,293	$	—	$	—
Securities available for sale
U.S. Government agency securities	24,278		—		24,278		$	—
Agency mortgage-backed securities	192,670		—		192,670		—
Agency collateralized mortgage obligations	120,697		—		120,697		—
State, county, and municipal securities	3,775		—		3,775		—
Single issuer trust preferred securities issued by banks and insurers	2,328		—		2,328		—
Pooled trust preferred securities issued by banks and insurers	1,593		—		—		1,593
Small business administration pooled securities	50,779		—		50,779		—
Equity securities	19,823		19,823		—		—
Loans held for sale	9,381		—		9,381		—
Derivative instruments	21,277		—		21,277		—
Liabilities
Derivative instruments	20,384		—		20,384		—
Total recurring fair value measurements	$	427,510	$	21,116	$	404,801	$	1,593
Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	36,504	$	—	$	—	$	36,504
Other real estate owned and other foreclosed assets	3,029		—		—		3,029
Total nonrecurring fair value measurements	$	39,533	$	—	$	—	$	39,533

			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, 2016
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	804	$	804	$	—	$	—
Securities available for sale
U.S. Government agency securities	$	24,244	$	—	$	24,244	$	—
Agency mortgage-backed securities	175,384		—		175,384		—
Agency collateralized mortgage obligations	99,868		—		99,868		—
State, county, and municipal securities	3,793		—		3,793		—
Single issuer trust preferred securities issued by banks and insurers	2,311		—		2,311		—
Pooled trust preferred securities issued by banks and insurers	1,584		—		—		1,584
Small business administration pooled securities	37,189		—		37,189		—
Equity securities	19,271		19,271		—		—
Loans held for sale	6,139		—		6,139		—
Derivative instruments	22,761		—		22,761		—
Liabilities
Derivative instruments	21,916		—		21,916		—
Total recurring fair value measurements	$	371,432	$	20,075	$	349,773	$	1,584
Nonrecurring fair value measurements:
Assets
Collateral dependent impaired loans	$	33,974	$	—	$	—	$	33,974
Other real estate owned and other foreclosed assets	4,173		—		—		4,173
Total nonrecurring fair value measurements	$	38,147	$	—	$	—	$	38,147

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:

	Three Months Ended
	June 30
	2017			2016
	(Dollars in thousands)
Pooled Trust Preferred Securities
Beginning balance	$	1,596		$	1,500
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	(4		)	13
Settlements	1			(7		)
Ending balance	$	1,593		$	1,506

	Six Months Ended
	June 30
	2017		2016
	(Dollars in thousands)
Pooled Trust Preferred Securities
Beginning balance	$	1,584	$	1,572
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	7		(58		)
Settlements	2		(8		)
Ending balance	$	1,593	$	1,506

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 2017		December 31 2016			June 30 2017	December 31 2016	June 30 2017	December 31 2016
Valuation Technique	Fair Value				Unobservable Inputs	Range		Weighted Average
	(Dollars in thousands)
Discounted cash flow methodology
Pooled trust preferred securities	$	1,593	$	1,584	Cumulative prepayment	0% - 62%	0% - 62%	2.3%	2.5%
					Cumulative default	5% - 100%	5% - 100%	12.6%	12.8%
					Loss given default	85% - 100%	85% - 100%	94.3%	94.2%
					Cure given default	0% - 75%	0% - 75%	60.9%	60.9%
Appraisals of collateral(1)
Collateral dependent impaired loans	$	36,504	$	33,974
Other real estate owned and foreclosed assets	$	3,029	$	4,173

(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, 2017
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,006	$	1,052	$	—	$	1,052	$	—
Agency mortgage-backed securities	178,358		180,448		—		180,448		—
Agency collateralized mortgage obligations	288,428		286,832		—		286,832		—
Single issuer trust preferred securities issued by banks	1,500		1,537		—		1,537		—
Small business administration pooled securities	29,100		29,190		—		29,190		—
Loans, net of allowance for loan losses(b)	6,173,713		6,055,275		—		—		6,055,275
Federal Home Loan Bank stock(c)	14,421		14,421		—		14,421		—
Cash surrender value of life insurance policies(d)	149,319		149,319		—		149,319		—
Financial liabilities
Deposit liabilities, other than time deposits(e)	$	6,087,206	6,087,206		—		6,087,206		—
Time certificates of deposits(f)	$	608,174	605,802		—		605,802		—
Federal Home Loan Bank borrowings(f)	53,279		53,227		—		53,227		—
Customer repurchase agreements and other short-term borrowings(f)	159,371		159,371		—		—		159,371
Junior subordinated debentures(g)	73,069		74,146		—		74,146		—
Subordinated debentures(f)	34,659		33,161		—		—		33,161

					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, 2016
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,007	$	1,054	$	—	$	1,054	$	—
Agency mortgage-backed securities	156,088		157,504		—		157,504		—
Agency collateralized mortgage obligations	297,445		294,650		—		294,650		—
Single issuer trust preferred securities issued by banks	1,500		1,544		—		1,544		—
Small business administration pooled securities	31,036		30,898		—		30,898		—
Loans, net of allowance for loan losses(b)	5,904,065		5,784,778		—		—		5,784,778
Federal Home Loan Bank stock(c)	11,497		11,497		—		11,497		—
Cash surrender value of life insurance policies(d)	144,503		144,503		—		144,503		—
Financial liabilities
Deposit liabilities, other than time deposits(e)	5,763,101		5,763,101		—		5,763,101		—
Time certificates of deposits(f)	649,152		647,038		—		647,038		—
Federal Home Loan Bank borrowings(f)	50,819		50,898		—		50,898		—
Customer repurchase agreements and other short-term borrowings(f)	176,913		176,913		—		—		176,913
Junior subordinated debentures(g)	73,107		72,510		—		72,510		—
Subordinated debentures(f)	34,635		34,241		—		—		34,241

(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. Additionally, this amount excludes collateral dependent impaired loans, which are deemed to be marked to fair value on a nonrecurring basis.

(c) FHLB stock has no quoted market value and is carried at cost, therefore the carrying amount approximates fair value.

(d) Cash surrender value of life insurance is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore carrying amount approximates fair value.

(e) Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date.

(f) Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

(g) Fair value was determined based upon market prices of securities with similar terms and maturities.