Fair Value Accounting and Measurement (Tables)

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2013 and 2012 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:



	Fair value at December 31, 2013		Fair Value Measurements at Reporting Date Using
	Fair value at December 31, 2013		Level 1		Level 2		Level 3
	(in thousands)
Assets
Securities available for sale
U.S. government agency and sponsored enterprise mortgage-back securities and collateralized mortgage obligations	$	948,408	$	—	$	948,408	$	—
State and municipal securities	364,470		—		364,470		—
U.S. government agency and government-sponsored enterprise securities	326,039		—		326,039		—
U.S. government securities	20,114		20,114		—		—
Other securities	5,080		—		5,080		—
Total securities available for sale	$	1,664,111	$	20,114	$	1,643,997	$	—
Other assets (Interest rate contracts)	$	9,044	$	—	$	9,044	$	—
Liabilities
Other liabilities (Interest rate contracts)	$	9,044	$	—	$	9,044	$	—



	Fair value at December 31, 2012		Fair Value Measurements at Reporting Date Using
	Fair value at December 31, 2012		Level 1		Level 2		Level 3
	(in thousands)
Assets
Securities available for sale
U.S. government agency and sponsored enterprise mortgage-back securities and collateralized mortgage obligations	$	572,369	$	—	$	572,369	$	—
State and municipal debt securities	285,575		—		285,575		—
U.S. government agency and government-sponsored enterprise securities	120,501		—		120,501		—
U.S. government securities	19,828		19,828		—		—
Other securities	3,392		—		3,392		—
Total securities available for sale	$	1,001,665	$	19,828	$	981,837	$	—
Other assets (Interest rate contracts)	$	14,921	$	—	$	14,921	$	—
Liabilities
Other liabilities (Interest rate contracts)	$	14,921	$	—	$	14,921	$	—

The following table sets forth the Company’s assets that were measured using fair value estimates on a nonrecurring basis at December 31, 2013 and 2012:



	Fair value at December 31, 2013		Fair Value Measurements at Reporting Date Using						Losses During the Year Ended December 31, 2013
	Fair value at December 31, 2013		Level 1		Level 2		Level 3		Losses During the Year Ended December 31, 2013
	(in thousands)
Impaired loans	$	8,973	$	—	$	—	$	8,973	$	1,536
Noncovered OREO	5,080		—		—		5,080		994
Covered OREO	613		—		—		613		236
	$	14,666	$	—	$	—	$	14,666	$	2,766



	Fair value at December 31, 2012		Fair Value Measurements at Reporting Date Using						Losses During the Year Ended December 31, 2012
	Fair value at December 31, 2012		Level 1		Level 2		Level 3		Losses During the Year Ended December 31, 2012
	(in thousands)
Impaired loans	$	10,599	$	—	$	—	$	10,599	$	3,891
Noncovered OREO	10,970		—		—		10,970		3,788
Covered OREO	2,663		—		—		2,663		1,032
Noncovered OPPO	210		—		—		210		39
	$	24,442	$	—	$	—	$	24,442	$	8,750

The range and weighted-average of the significant unobservable inputs used to fair value our Level 3 nonrecurring assets during 2013 and 2012, along with the valuation techniques used, are shown in the following tables:



	Fair value at December 31, 2013		Valuation Technique	Unobservable Input	Range (Weighted Average) (1)
	(dollars in thousands)
Impaired loans	$	8,973	Fair Market Value of Collateral	Adjustment to Appraisal Value	N/A (2)
Noncovered OREO	5,080		Fair Market Value of Collateral	Adjustment to Appraisal Value	N/A (2)
Covered OREO	613		Fair Market Value of Collateral	Adjustment to Appraisal Value	N/A (2)
(1) Discount applied to appraisal value, letter of intent to purchase, or stated value (in the case of accounts receivable and inventory).
(2) Quantitative disclosures are not provided for impaired loans, noncovered OREO and covered OREO because there were no adjustments made to the appraisal value during the current period.

The following tables summarize carrying amounts and estimated fair values of selected financial instruments for the periods indicated:



	December 31, 2013
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and due from banks	$	165,030	$	165,030	$	165,030	$	—	$	—
Interest-earning deposits with banks	14,531		14,531		14,531		—		—
Securities available for sale	1,664,111		1,664,111		20,114		1,643,997		—
FHLB stock	32,529		32,529		—		32,529		—
Loans held for sale	735		735		—		735		—
Loans	4,444,842		4,605,038		—		—		4,605,038
FDIC loss-sharing asset	39,846		11,248		—		—		11,248
Interest rate contracts	9,044		9,044		—		9,044		—
Liabilities
Deposits	$	5,959,475	$	5,958,747	$	5,449,546	$	509,201	$	—
FHLB advances	36,606		35,080		—		35,080		—
Repurchase agreements	25,000		26,361		—		26,361		—
Interest rate contracts	9,044		9,044		—		9,044		—



	December 31, 2012
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and due from banks	$	124,573	$	124,573	$	124,573	$	—	$	—
Interest-earning deposits with banks	389,353		389,353		389,353		—		—
Securities available for sale	1,001,665		1,001,665		19,828		981,837		—
FHLB stock	21,819		21,819		—		21,819		—
Loans held for sale	2,563		2,563		—		2,563		—
Loans	2,864,803		2,944,317		—		—		2,944,317
FDIC loss-sharing asset	96,354		26,543		—		—		26,543
Interest rate contracts	14,921		14,921		—		14,921		—
Liabilities
Deposits	$	4,042,085	$	4,043,221	$	3,549,821	$	493,400	$	—
FHLB advances	6,644		5,894		—		5,894		—
Repurchase agreements	25,000		26,464		—		26,464		—
Interest rate contracts	14,921		14,921		—		14,921		—

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