Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015		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 and federal agency	$	52,852	—	52,852	—
U.S. government sponsored enterprises	78,228		—	78,228	—
State and local governments	996,146		—	996,146	—
Corporate bonds	380,310		—	380,310	—
Residential mortgage-backed securities	1,036,557		—	1,036,557	—
Total assets measured at fair value on a recurring basis	$	2,544,093	—	2,544,093	—
Interest rate swaps	$	21,410	—	21,410	—
Total liabilities measured at fair value on a recurring basis	$	21,410	—	21,410	—



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 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 and federal agency	$	44	—	44	—
U.S. government sponsored enterprises	21,945		—	21,945	—
State and local governments	997,969		—	997,969	—
Corporate bonds	314,854		—	314,854	—
Residential mortgage-backed securities	1,052,616		—	1,052,616	—
Total assets measured at fair value on a recurring basis	$	2,387,428	—	2,387,428	—
Interest rate swaps	$	16,668	—	16,668	—
Total liabilities measured at fair value on a recurring basis	$	16,668	—	16,668	—

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, 2015		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	$	535	—	—	535
Collateral-dependent impaired loans, net of ALLL	10,910		—	—	10,910
Total assets measured at fair value on a non-recurring basis	$	11,445	—	—	11,445



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 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	$	3,000	—	—	3,000
Collateral-dependent impaired loans, net of ALLL	15,480		—	—	15,480
Total assets measured at fair value on a non-recurring basis	$	18,480	—	—	18,480

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

The following tables present 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, 2015		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value March 31, 2015		Valuation Technique	Unobservable Input	Range (Weighted-Average) ¹
Other real estate owned	$	535	Sales comparison approach	Selling costs	8.0% - 8.0% (8.0%)
Collateral-dependent impaired loans, net of ALLL	$	378	Cost approach	Selling costs	7.0% - 10.0% (8.8%)
	5,616		Sales comparison approach	Selling costs	0.0% - 10.0% (8.7%)
				Adjustment to comparables	0.0% - 5.0% (0.0%)
	4,916		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
				Adjustment to comparables	20.0% - 20.0% (20.0%)
	$	10,910



	Fair Value December 31, 2014		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value December 31, 2014		Valuation Technique	Unobservable Input	Range (Weighted-Average) ¹
Other real estate owned	$	2,393	Sales comparison approach	Selling costs	0.0% - 10.0% (5.8%)
				Adjustment to comparables	0.0% - 7.0% (0.5%)
	607		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
				Discount rate	10.0% - 10.0% (10.0%)
	$	3,000
Collateral-dependent impaired loans, net of ALLL	$	6	Cost approach	Selling costs	7.0% - 7.0% (7.0%)
	5,335		Income approach	Selling costs	8.0% - 10.0% (8.5%)
				Discount rate	8.3% - 12.0% (9.1%)
	6,330		Sales comparison approach	Selling costs	0.0% - 10.0% (8.3%)
				Adjustment to comparables	0.0% - 30.0% (3.5%)
	3,809		Combined approach	Selling costs	8.0% - 10.0% (9.2%)
				Adjustment to comparables	10.0% - 20.0% (16.2%)
	$	15,480

__________

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, 2015		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	$	183,466	183,466	—	—
Investment securities, available-for-sale	2,544,093		—	2,544,093	—
Investment securities, held-to-maturity	570,285		—	597,127	—
Loans held for sale	54,132		54,132	—	—
Loans receivable, net of ALLL	4,557,813		—	4,476,848	152,222
Accrued interest receivable	43,260		43,260	—	—
Non-marketable equity securities	54,277		—	54,277	—
Total financial assets	$	8,007,326	280,858	7,672,345	152,222
Financial liabilities
Deposits	$	6,458,792	5,082,499	1,380,870	—
FHLB advances	298,148		—	314,837	—
Repurchase agreements and other borrowed funds	432,355		—	432,355	—
Subordinated debentures	125,741		—	77,353	—
Accrued interest payable	3,893		3,893	—	—
Interest rate swaps	21,410		—	21,410	—
Total financial liabilities	$	7,340,339	5,086,392	2,226,825	—



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount December 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	$	442,409	442,409	—	—
Investment securities, available-for-sale	2,387,428		—	2,387,428	—
Investment securities, held-to-maturity	520,997		—	550,946	—
Loans held for sale	46,726		46,726	—	—
Loans receivable, net of ALLL	4,358,342		—	4,288,417	149,769
Accrued interest receivable	40,587		40,587	—	—
Non-marketable equity securities	52,868		—	52,868	—
Total financial assets	$	7,849,357	529,722	7,279,659	149,769
Financial liabilities
Deposits	$	6,345,212	4,928,771	1,421,234	—
FHLB advances	296,944		—	312,363	—
Repurchase agreements and other borrowed funds	404,418		—	404,418	—
Subordinated debentures	125,705		—	76,711	—
Accrued interest payable	4,155		4,155	—	—
Interest rate swaps	16,668		—	16,668	—
Total financial liabilities	$	7,193,102	4,932,926	2,231,394	—

- 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