Fair Value Measurements (Tables)

12 Months Ended

Dec. 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 December 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)
December 31, 2014
Securities available for sale:
U.S. Treasury	$	248,993	$	—	$	—	$	248,993
U.S. federal agencies		—		172,449		—		172,449
Mortgage-backed securities		—		9,425		17,032		26,457
States and political subdivisions		—		53,373		—		53,373
Other securities		—		3,491		11,427		14,918
Derivative assets		—		6,124		—		6,124
Derivative liabilities		—		4,756		—		4,756
Loans held for sale		—		9,433		—		9,433
Mortgage servicing intangibles		—		—		450		450
December 31, 2013
Securities available for sale:
U.S. Treasury	$	29,861	$	—	$	—	$	29,861
U.S. federal agencies		—		387,285		—		387,285
Mortgage-backed securities		—		13,262		19,416		32,678
States and political subdivisions		—		50,334		—		50,334
Other securities		—		3,465		12,018		15,483
Derivative assets		—		2,211		—		2,211
Derivative liabilities		—		1,029		—		1,029
Loans held for sale		—		6,469		—		6,469
Mortgage servicing intangibles		—		—		568		568

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 years ended December 31, 2014 and 2013 were as follows:

	Twelve Months Ended December 31,
	2014			2013
	(Dollars in thousands)
Balance at the beginning of the year	$	32,002		$	10,779
Purchases, issuances and settlements		(1,314	)		20,499
Sales		(3,433	)		(251	)
Gains included in earnings		1,469			234
Total unrealized gains/(losses)		185			741
Balance at the end of the year	$	28,909		$	32,002

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 year:

	Level 1		Level 2		Level 3		Total Fair Value		Gains (Losses)
	(Dollars in thousands)
Year Ended December 31, 2014
Impaired loans (less specific allowance)		—		—	$	33,797	$	33,797	$	—
Foreclosed assets		—		—		220		220		(18	)
Other real estate owned		—		—		7,859		7,859		(304	)
Year Ended December 31, 2013
Impaired loans (less specific allowance)		—		—	$	34,848	$	34,848	$	—
Foreclosed assets		—		—		237		237		(35	)
Other real estate owned		—		—		8,149		8,149		(170	)

Estimated Fair Values of 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:

	December 31,
	2014				2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in thousands)
FINANCIAL ASSETS
Level 2 inputs:
Cash and cash equivalents	$	1,913,895	$	1,913,895	$	1,857,535	$	1,857,535
Securities held for investment		8,593		8,671		11,986		12,094
Level 3 inputs:
Loans, net		3,819,942		3,857,224		3,348,112		3,364,940
FINANCIAL LIABILITIES
Level 2 inputs:
Deposits		5,904,704		5,945,502		5,419,519		5,451,114
Short-term borrowings		3,982		3,982		4,590		4,590
Long-term borrowings		—		—		6,938		6,908
Junior subordinated debentures		26,804		31,200		26,804		29,259
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
Loan commitments				1,640				1,654
Letters of credit				478				459

- 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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