Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2014

Fair value measurement of assets and liabilities measured at fair value on a recurring basis

The following schedules disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value March 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities, available-for-sale
U.S. government sponsored enterprises	$	9,942	—	9,942	—
State and local governments	921,450		—	921,450	—
Corporate bonds	435,685		—	435,685	—
Residential mortgage-backed securities	1,302,103		—	1,302,103	—
Total assets measured at fair value on a recurring basis	$	2,669,180	—	2,669,180	—
Interest rate swaps	$	3,583	—	3,583	—
Total liabilities measured at fair value on a recurring basis	$	3,583	—	3,583	—



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities, available-for-sale
U.S. government sponsored enterprises	$	10,628	—	10,628	—
State and local governments	1,385,078		—	1,385,078	—
Corporate bonds	442,501		—	442,501	—
Residential mortgage-backed securities	1,384,622		—	1,384,622	—
Interest rate swaps	1,896		—	1,896	—
Total assets measured at fair value on a recurring basis	$	3,224,725	—	3,224,725	—

Fair value measurement of assets measured at fair value on a non-recurring basis

The following schedules disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value March 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	$	971	—	—	971
Collateral-dependent impaired loans, net of ALLL	17,567		—	—	17,567
Total assets measured at fair value on a non-recurring basis	$	18,538	—	—	18,538



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	$	10,888	—	—	10,888
Collateral-dependent impaired loans, net of ALLL	18,670		—	—	18,670
Total assets measured at fair value on a non-recurring basis	$	29,558	—	—	29,558

Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:



	Fair Value March 31, 2014		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value March 31, 2014		Valuation Technique	Unobservable Input	Range (Weighted Average) ¹
Other real estate owned	$	191	Sales comparison approach	Selling costs	10.0% - 10.0% (10.0%)
	780		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
				Discount rate	10.0% - 10.0% (10.0%)
	$	971
Collateral-dependent impaired loans, net of ALLL	$	4,078	Income approach	Selling costs	8.0% - 8.0% (8.0%)
				Discount rate	8.3% - 8.3% (8.3%)
	10,795		Sales comparison approach	Selling costs	0.0% - 10.0% (8.0%)
	2,694		Combined approach	Selling costs	8.0% - 8.0% (8.0%)
				Discount rate	7.3% - 7.3% (7.3%)
				Adjustment to comparables	0.0% - 10.0% (5.6%)
	$	17,567



	Fair Value December 31, 2013		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value December 31, 2013		Valuation Technique	Unobservable Input	Range (Weighted- Average) ¹
Other real estate owned	$	9,278	Sales comparison approach	Selling costs	7.0% - 10.0% (7.7%)
				Adjustment to comparables	0.0% - 37.5% (1.4%)
	1,610		Combined approach	Selling costs	5.0% - 10.0% (7.5%)
				Discount rate	8.5% - 8.5% (8.5%)
				Adjustment to comparables	25.0% - 25.0% (25.0%)
	$	10,888
Collateral-dependent impaired loans, net of ALLL	$	4,076	Income approach	Selling costs	8.0% - 8.0% (8.0%)
				Discount rate	8.3% - 8.3% (8.3%)
	11,784		Sales comparison approach	Selling costs	0.0% - 10.0% (7.9%)
				Adjustment to comparables	0.0% - 1.0% (0.0%)
	2,810		Combined approach	Selling costs	0.0% - 8.0% (7.8%)
				Discount rate	7.3% - 7.3% (7.3%)
				Adjustment to comparables	10.0% - 50.0% (18.9%)
	$	18,670

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¹The range for selling costs and adjustments to comparables indicate reductions to the fair value.

Carrying amounts and estimated fair values of financial instruments

The following schedules present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount March 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	161,691	161,691	—	—
Investment securities, available-for-sale	2,669,180		—	2,669,180	—
Investment securities, held-to-maturity	481,476		—	498,902	—
Loans held for sale	36,133		36,133	—	—
Loans receivable, net of ALLL	3,957,900		—	3,840,131	181,948
Accrued interest receivable	41,274		41,274	—	—
Non-marketable equity securities	52,192		—	52,192	—
Total financial assets	$	7,399,846	239,098	7,060,405	181,948
Financial liabilities
Deposits	$	5,624,465	4,315,105	1,314,661	—
FHLB advances	686,744		—	703,287	—
Repurchase agreements and other borrowed funds	335,391		—	335,391	—
Subordinated debentures	125,597		—	68,673	—
Accrued interest payable	3,173		3,173	—	—
Interest rate swaps	3,583		—	3,583	—
Total financial liabilities	$	6,778,953	4,318,278	2,425,595	—



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	155,657	155,657	—	—
Investment securities, available-for-sale	3,222,829		—	3,222,829	—
Loans held for sale	46,738		46,738	—	—
Loans receivable, net of ALLL	3,932,487		—	3,807,993	187,731
Accrued interest receivable	41,898		41,898	—	—
Non-marketable equity securities	52,192		—	52,192	—
Interest rate swaps	1,896		—	1,896	—
Total financial assets	$	7,453,697	244,293	7,084,910	187,731
Financial liabilities
Deposits	$	5,579,967	4,258,213	1,341,382	—
FHLB advances	840,182		—	857,551	—
Repurchase agreements and other borrowed funds	321,781		—	321,781	—
Subordinated debentures	125,562		—	71,501	—
Accrued interest payable	3,505		3,505	—	—
Total financial liabilities	$	6,870,997	4,261,718	2,592,215	—

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details