FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(Dollars in thousands)
March 31, 2014
Securities available for sale:
U.S. Treasury	$	128,740	$	—	$	—	$	128,740
U.S. federal agencies		—		346,793		—		346,793
Mortgage-backed securities		—		12,277		17,587		29,864
States and political subdivisions		—		54,971		—		54,971
Other securities		—		3,482		11,899		15,381
Derivative assets		—		3,072		—		3,072
Derivative liabilities		—		1,667		—		1,667
Loans held for sale		—		5,231		—		5,231
Mortgage servicing intangibles		—		—		535		535
March 31, 2013
Securities available for sale:
U.S. Treasury	$	20,304	$	—	$	—	$	20,304
U.S. federal agencies		—		442,075		—		442,075
Mortgage-backed securities		—		17,974		—		17,974
States and political subdivisions		—		55,493		—		55,493
Other securities		—		3,421		10,124		13,545
Derivative assets		—		3,424		—		3,424
Derivative liabilities		—		1,658		—		1,658
Loans held for sale		—		7,211		—		7,211
Mortgage servicing intangibles		—		—		709		709

Changes in Level 3 Assets Measured at Estimated Fair Value on Recurring Basis

The changes in Level 3 assets measured at estimated fair value on a recurring basis during the three months ended March 31, 2014 and 2013 were as follows:


	Three Months Ended March 31
	2014			2013
	(Dollars in thousands)
Balance at the beginning of the year	$	32,002		$	10,779
Purchases, issuances and settlements		(1,847	)		116
Sales		(499	)		(15	)
Gains included in earnings		417			(30	)
Total unrealized losses		(52	)		(17	)

Balance at the end of the period	$	30,021		$	10,833

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis and the related gains or losses recognized during the period:


	Level 1		Level 2		Level 3		Total Fair Value		Gains (Losses)
	(Dollars in thousands)
Three Months Ended March 31, 2014
Impaired loans (less specific allowance)		—		—	$	38,807	$	38,807	$	—
Foreclosed assets		—		—		262		262		(12	)
Other real estate owned		—		—		7,328		7,328		(517	)
Three Months Ended March 31, 2013
Impaired loans (less specific allowance)		—		—	$	40,852	$	40,852	$	—
Foreclosed assets		—		—		326		326		13
Other real estate owned		—		—		9,098		9,098		(87	)

Estimated Fair Values of Company's Financial Instruments

The estimated fair values of the Company’s financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value, are as follows:


	March 31,
	2014				2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in thousands)
FINANCIAL ASSETS
Level 2 inputs:
Cash and cash equivalents	$	1,966,106	$	1,966,106	$	1,716,052	$	1,716,052
Securities held for investment		11,269		11,351		16,099		16,317
Level 3 inputs:
Loans, net		3,502,346		3,424,944		3,181,303		3,240,479
FINANCIAL LIABILITIES
Level 2 inputs:
Deposits		5,737,850		5,538,503		5,174,512		5,200,273
Short-term borrowings		8,603		8,603		4,891		4,891
Long-term borrowings		2,000		1,997		11,040		11,010
Junior subordinated debentures		26,804		28,948		26,804		31,093
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
Loan commitments				1,712				1,556
Letters of credit				459				469

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- 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.

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