FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of carrying amount and estimated fair value of financial instruments



						Fair Value Measurement Using
	Carrying Amount		Estimated Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
December 31, 2015
Financial assets
Cash and due from banks	$	71,797	$	71,797		$	71,797	$	—		$	—
Interest-bearing deposits in other banks	8,397		8,397			8,397		—			—
Investment securities	1,520,172		1,516,391			916		1,502,996			12,479
Loans held for sale	14,109		14,109			—		—			14,109
Net loans and leases	3,148,218		3,094,404			—		38,205			3,056,199
Accrued interest receivable	14,898		14,898			14,898		—			—

Financial liabilities
Deposits:
Noninterest-bearing deposits	1,145,244		1,145,244			1,145,244		—			—
Interest-bearing demand and savings deposits	2,223,988		2,223,988			2,223,988		—			—
Time deposits	1,064,207		1,064,255			—		—			1,064,255
Short-term debt	69,000		69,000			—		69,000			—
Long-term debt	92,785		67,421			—		67,421			—
Accrued interest payable (included in other liabilities)	1,072		1,072			1,072		—			—

Off-balance sheet financial instruments
Commitments to extend credit	801,835		1,014			—		1,014			—
Standby letters of credit and financial guarantees written	13,434		202			—		202			—
Interest rate options	24,009		43			—		43			—
Forward interest rate contracts	9,973		15			—		15			—

December 31, 2014
Financial assets
Cash and due from banks	$	72,316	$	72,316		$	72,316	$	—		$	—
Interest-bearing deposits in other banks	13,691		13,691			13,691		—			—
Investment securities	1,467,305		1,464,615			877		1,450,643			13,095
Loans held for sale	9,683		9,683			—		—			9,683
Net loans and leases	2,858,158		2,752,420			—		70,743			2,681,677
Accrued interest receivable	13,584		13,584			13,584		—			—

Financial liabilities
Deposits:
Noninterest-bearing deposits	1,034,146		1,034,146			1,034,146		—			—
Interest-bearing demand and savings deposits	2,030,870		2,030,870			2,030,870		—			—
Time deposits	1,045,284		1,047,322			—		—			1,047,322
Short-term debt	38,000		38,000			—		38,000			—
Long-term debt	92,785		42,454			—		42,454			—
Accrued interest payable (included in other liabilities)	1,018		1,018			1,018		—			—

Off-balance sheet financial instruments
Commitments to extend credit	720,255		3,601			—		3,601			—
Standby letters of credit and financial guarantees written	18,797		141			—		141			—
Interest rate options	44,266		444			—		444			—
Forward interest rate contracts	23,919		(62		)	—		(62		)	—

Schedule of balances of assets and liabilities measured at fair value on a recurring basis

The following table below presents the balances of assets and liabilities measured at fair value on a recurring basis:



			Fair Value at Reporting Date Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
December 31, 2015
Available for sale securities:
Debt securities:
States and political subdivisions	$	190,473	$	—	$	177,994	$	12,479
Corporate securities	108,571		—		108,571		—
Mortgage-backed securities:
U.S. Government sponsored entities	771,909		—		771,909		—
Non-agency collateralized mortgage obligations	200,386		—		200,386		—
Other	916		916		—		—
Derivatives - Interest rate contracts	59		—		59		—
Total	$	1,272,314	$	916	$	1,258,919	$	12,479

December 31, 2014
Available for sale securities:
Debt securities:
States and political subdivisions	$	191,645	$	—	$	178,550	$	13,095
Corporate securities	100,604		—		100,604		—
Mortgage-backed securities:
U.S. Government sponsored entities	751,558		—		751,558		—
Non-agency collateralized mortgage obligations	184,334		—		184,334		—
Other	877		877		—		—
Derivatives - Interest rate contracts	382		—		382		—
Total	$	1,229,400	$	877	$	1,215,428	$	13,095

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:



	Available for Sale Debt Securities - States and Political Subdivisions
	(Dollars in thousands)
Balance at December 31, 2013	$	10,518
Principal payments received	(275		)
Purchases	2,706
Unrealized net loss included in other comprehensive loss	146
Balance at December 31, 2014	$	13,095
Principal payments received	(987		)
Purchases	—
Unrealized net gain included in other comprehensive income	371
Balance at December 31, 2015	$	12,479

Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis

For assets measured at fair value on a nonrecurring basis that were recorded at fair value on our balance sheet, the following table provides the level of valuation assumptions used to determine the respective fair values:



			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Losses
	(Dollars in thousands)
December 31, 2015
Impaired loans (1)	$	38,153	$	—	$	38,153	$	—	$	111
Other real estate (2)	1,962		—		1,962		—		220
									$	331
December 31, 2014
Impaired loans (1)	$	70,743	$	—	$	70,743	$	—	$	2,532
Other real estate (2)	2,948		—		2,948		—		1,540
									$	4,072


(1)	Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral.


(2)	Represents other real estate that is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.