Fair Value (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Assets and Liabilities Reported on Consolidated Statements of Financial Condition at Fair Value on a Recurring Basis

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of June 30, 2014 and December 31, 2013 by level within the fair value hierarchy. As required by GAAP, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	As of June 30, 2014
(Dollar amounts in thousands)	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level I)		Significant Other Observable Inputs (Level II)		Significant Unobservable Inputs (Level III)		Total
Assets:
Securities available for sale
Trust preferred securities	$	—	$	1,799	$	37,055	$	38,854
Municipal securities		—		180,312		—		180,312
Equity securities		1,453		—		—		1,453
Corporate bonds		—		186,618		—		186,618
Mortgage backed securities
U.S. sponsored entities		—		684,545		—		684,545
Private label		—		1,572		—		1,572
Subtotal mortgage-backed securities		—		686,117		—		686,117
Total securities available for sale	$	1,453	$	1,054,846	$	37,055	$	1,093,354
Other Assets
Interest rate caps	$	—	$	462	$	—	$	462
Total other assets	$	—	$	462	$	—	$	462
Liabilities
Other Liabilities
Interest rate swaps	$	—	$	3,618	$	—	$	3,618
Total other liabilities	$	—	$	3,618	$	—	$	3,618

	As of December 31, 2013
(Dollar amounts in thousands)	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level I)		Significant Other Observable Inputs (Level II)		Significant Unobservable Inputs (Level III)		Total
Assets:
Securities available for sale
Trust preferred securities	$	—	$	1,697	$	37,209	$	38,906
Municipal securities		—		179,740		—		179,740
Equity securities		1,921		—		—		1,921
Corporate bonds		—		206,220		—		206,220
Mortgage backed securities
U.S. sponsored entities		—		634,424		—		634,424
Private label		—		1,805		—		1,805
Subtotal mortgage-backed securities		—		636,229		—		636,229
Total securities available for sale	$	1,921	$	1,023,886	$	37,209	$	1,063,016
Other Assets
Interest rate caps	$	—	$	717	$	—	$	717
Total other assets	$	—	$	717	$	—	$	717
Liabilities:
Other Liabilities
Interest rate swaps	$	—	$	3,870	$	—	$	3,870
Total other liabilities	$	—	$	3,870	$	—	$	3,870

Fair Value Measurements Using Significant Unobservable Inputs (Level III)

The following table presents the changes in the Level III assets measured at fair value on a recurring basis for the three and six month periods ended June 30, 2014 and 2013.

Fair value measurements using significant unobservable inputs (Level III).

	Securities available for sale					Securities available for sale
	Three months ended					Six months ended
	June 30,					June 30,
	2014			2013		2014			2013
Beginning balance January 1,	$	37,146		$	36,353	$	37,209		$	36,179
Total net realized/unrealized gains (losses)
Included in earnings:
Interest income on securities		4			4		7			7
Net realized loss on securities available for sale		—			—		(193	)		—
Included in other comprehensive income		(95	)		577		32			748
Transfers in and/or out of Level III		—			—		—			—
Purchases, issuances and settlements
Purchases		—			—		—			—
Issuances		—			—		—			—
Sales		—			—		—			—
Settlements		—			—		—			—
Ending balance, June 30,	$	37,055		$	36,934	$	37,055		$	36,934

Changes in Unrealized Gains and Losses Recorded in Earnings for Level III Assets and Liabilities

The following table summarizes changes in unrealized gains and losses recorded in earnings for the three and six month period ended June 30, 2014 and 2013 for Level III assets and liabilities that are still held at June 30, 2014 and 2013.

	Securities available for sale				Securities available for sale
	Three months ended				Six months ended
	June 30,				June 30,
	2014		2013		2014			2013
Interest income on securities	$	4	$	4	$	7		$	7
Net realized loss on securities available for sale		—		—		(193	)		—
Total	$	4	$	4	$	(186	)	$	7

Schedule of Fair Value Level III Assets Measured at Fair Value on a Recurring or Non-Recurring Basis

For Level III assets measured at fair value on a recurring or non-recurring basis as of June 30, 2014, the significant observable inputs used in the fair value measurements were as follows:

(Dollar amounts in thousands)	Fair Value at June 30, 2014		Fair Value at December 31, 2013		Valuation Technique	Significant Unobservable Inputs	2014 Range (Weighted Average)	2013 Range (Weighted Average)
Trust Preferred Securities	$	37,055	$	37,209	Discounted Cash Flow	Credit Spreads	35-65 (52.5) basis points	40-75 (62.5) basis points
						Liquidity Risk Adjustments	20-55 (36) basis points	20-55 (36) basis points
						Default Rates	.6%-1%	.6%-1%
Impaired Loans		15,479		15,961	Appraisal of collateral (1)	Appraisal value and liquidation expense	2.84%-48.93%(9.91%)	2.84%-48.93%(9.95%)
Real estate acquired through foreclosure		2,141		1,977	Appraisal of collateral (1)	N/A	N/A	N/A
Servicing assets		5		9	Discounted Cash Flow	Remaining term	.75 yrs to 16.40 yrs (12 yrs)	1 yrs to 16.65 yrs (12.5 yrs)
						Discount Rate	11.25%-12.25% (11.36%)	11.25%-12.25%(11.36%)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level III inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.