Fair Value Measurements (Tables)

9 Months Ended

Sep. 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)
	September 30, 2017
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	1,298	$	1,298	$	—	$	—
Securities available for sale
U.S. Government agency securities	23,228		—		23,228		—
Agency mortgage-backed securities	214,564		—		214,564		—
Agency collateralized mortgage obligations	114,829		—		114,829		—
State, county, and municipal securities	2,539		—		2,539		—
Single issuer trust preferred securities issued by banks and insurers	2,044		—		2,044		—
Pooled trust preferred securities issued by banks and insurers	1,624		—		—		1,624
Small business administration pooled securities	50,186		—		50,186		—
Equity securities	20,111		20,111		—		—
Loans held for sale	5,459		—		5,459		—
Derivative instruments	20,303		—		20,303		—
Liabilities
Derivative instruments	19,199		—		19,199		—
Total recurring fair value measurements	$	436,986	$	21,409	$	413,953	$	1,624
Nonrecurring fair value measurements
Assets
Collateral dependent impaired loans	$	33,974	$	—	$	—	$	33,974
Other real estate owned and other foreclosed assets	2,898		—		—		2,898
Total nonrecurring fair value measurements	$	36,872	$	—	$	—	$	36,872

			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
	September 30
	2017			2016
	(Dollars in thousands)
Pooled Trust Preferred Securities
Beginning balance	$	1,593		$	1,506
Gains and (losses) (realized/unrealized)
Included in other comprehensive income	51			41
Settlements	(20		)	(9		)
Ending balance	$	1,624		$	1,538

	Nine Months Ended
	September 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	58			(17		)
Settlements	(18		)	(17		)
Ending balance	$	1,624		$	1,538

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 2017		December 31 2016			September 30 2017	December 31 2016	September 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	$	1,624	$	1,584	Cumulative prepayment	0% - 61%	0% - 62%	2.5%	2.5%
					Cumulative default	5% - 100%	5% - 100%	12.5%	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	$	33,974	$	33,974
Other real estate owned and foreclosed assets	$	2,898	$	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)
	September 30, 2017
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,006	$	1,048	$	—	$	1,048	$	—
Agency mortgage-backed securities	171,664		173,980		—		173,980		—
Agency collateralized mortgage obligations	275,894		274,233		—		274,233		—
Single issuer trust preferred securities issued by banks	1,500		1,539		—		1,539		—
Small business administration pooled securities	28,734		28,862		—		28,862		—
Loans, net of allowance for loan losses(b)	6,196,218		6,072,612		—		—		6,072,612
Federal Home Loan Bank stock(c)	11,597		11,597		—		11,597		—
Cash surrender value of life insurance policies(d)	150,352		150,352		—		150,352		—
Financial liabilities
Deposit liabilities, other than time deposits(e)	$	6,055,042	$	6,055,042	$	—	$	6,055,042	$	—
Time certificates of deposits(f)	627,900		625,275		—		625,275		—
Federal Home Loan Bank borrowings(f)	53,272		52,125		—		52,125		—
Customer repurchase agreements and other short-term borrowings(f)	179,670		179,670		—		—		179,670
Junior subordinated debentures(g)	73,071		74,320		—		74,320		—
Subordinated debentures(f)	34,670		32,857		—		—		32,857

					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.