FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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)
June 30, 2014
Securities available for sale:
U.S. Treasury	$	229,549	$	—	$	—	$	229,549
U.S. federal agencies		—		231,276		—		231,276
Mortgage-backed securities		—		11,471		17,089		28,560
States and political subdivisions		—		55,522		—		55,522
Other securities		—		3,484		12,741		16,225
Derivative assets		—		3,653		—		3,653
Derivative liabilities		—		2,084		—		2,084
Loans held for sale		—		9,519		—		9,519
Mortgage servicing intangibles		—		—		500		500
June 30, 2013
Securities available for sale:
U.S. Treasury	$	20,158	$	—	$	—	$	20,158
U.S. federal agencies		—		404,522		—		404,522
Mortgage-backed securities		—		16,031		—		16,031
States and political subdivisions		—		51,929		—		51,929
Other securities		—		3,446		9,827		13,273
Derivative assets		—		2,200		—		2,200
Derivative liabilities		—		991		—		991
Loans held for sale		—		10,367		—		10,367
Mortgage servicing intangibles		—		—		638		638

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 six months ended June 30, 2014 and 2013 were as follows:


	Six Months Ended June 30,
	2014			2013
	(Dollars in thousands)
Balance at the beginning of the year	$	32,002		$	10,779
Purchases, issuances and settlements		(2,287	)		239
Sales		(499	)		(121	)
Gains included in earnings		382			5
Total unrealized gains (losses)		732			(437	)

Balance at the end of the period	$	30,330		$	10,465

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)
Six Months Ended June 30, 2014
Impaired loans (less specific allowance)		—		—	$	40,590	$	40,590	$	—
Foreclosed assets		—		—		292		292		(23	)
Other real estate owned		—		—		6,114		6,114		(71	)
Six Months Ended June 30, 2013
Impaired loans (less specific allowance)		—		—	$	39,035	$	39,035	$	—
Foreclosed assets		—		—		511		511		29
Other real estate owned		—		—		7,992		7,992		(705	)

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:


	June 30,
	2014				2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in thousands)
FINANCIAL ASSETS
Level 2 inputs:
Cash and cash equivalents	$	1,856,437	$	1,856,437	$	1,720,239	$	1,720,239
Securities held for investment		9,297		9,386		14,511		14,654
Level 3 inputs:
Loans, net		3,622,611		3,661,752		3,206,102		3,238,652
FINANCIAL LIABILITIES
Level 2 inputs:
Deposits		5,721,593		5,754,876		5,150,411		5,175,528
Short-term borrowings		12,317		12,317		3,522		3,522
Long-term borrowings		—		—		9,964		9,906
Junior subordinated debentures		26,804		28,948		26,804		28,991
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
Loan commitments				1,791				1,574
Letters of credit				426				437

- 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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