Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):

	Total		Level 1		Level 2		Level 3
Fair value at March 31, 2015
Securities available for sale:
Obligations of U.S. government corporations and agencies	$	210,535		—	$	210,535		—
Obligations of states and political subdivisions		9,656		—		9,656		—
Corporate debt securities		1,905		—		1,905		—
Marketable equity services		3,030	$	3,030		—		—
Mortgage servicing rights		7,057		—		—	$	7,057
Total assets measured at fair value	$	232,183	$	3,030	$	222,096	$	7,057
	Total		Level 1		Level 2		Level 3
Fair value at December 31, 2014
Securities available for sale:
Obligations of U.S. government corporations and agencies	$	75,120		—	$	75,120		—
Obligations of states and political subdivisions		3,175		—		3,175		—
Corporate debt securities		1,908		—		1,908		—
Marketable equity securities		3,002	$	3,002		—		—
Mortgage servicing rights		7,378		—		—	$	7,378
Total assets measured at fair value	$	90,583	$	3,002	$	80,203	$	7,378

Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) on Recurring Basis

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):

	Beginning Balance		Transfers into (out of) Level 3		Change Included in Earnings			Issuances		Ending Balance
Three months ended March 31,
2015: Mortgage servicing rights	$	7,378		—	$	(506	)	$	185	$	7,057
2014: Mortgage servicing rights	$	6,165		—	$	(181	)	$	123	$	6,107

Quantitative Information about Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements at March 31, 2015:

	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Mortgage Servicing Rights	$	7,057	Discounted cash flow	Constant prepayment rate	6.0%-23.1%, 13.0%
				Discount rate	10.0%-12.0%, 10.0%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2014:

	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Mortgage Servicing Rights	$	7,378	Discounted cash flow	Constant prepayment rate	5.7%-23.4%, 12.0%
				Discount rate	10.0%-12.0%, 10.0%

Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated, that had a write-down or an additional allowance provided during the periods indicated (in thousands):

	Total		Level 1		Level 2		Level 3		Total     (Losses)
Three months ended March 31, 2015
Fair value:
Impaired Originated & PNCI loans	$	3,690		—		—	$	3,690	$	(181	)
Foreclosed assets		2,384		—		—		2,384		(64	)
Total assets measured at fair value	$	6,074		—		—	$	6,074	$	(245	)
	Total		Level 1		Level 2		Level 3		Total (Losses)
Year ended December 31, 2014
Fair value:
Impaired Originated & PNCI loans	$	2,480		—		—	$	2,480	$	(636	)
Foreclosed assets		2,611		—		—		2,611		(137	)
Total assets measured at fair value	$	5,091		—		—	$	5,091	$	(773	)
	Total		Level 1		Level 2		Level 3		Total (Losses)
Three months ended March 31, 2014
Fair value:
Impaired Originated & PNCI loans	$	21,498		—		—	$	21,498	$	(272	)
Foreclosed assets		802		—		—		802		(21	)
Total assets measured at fair value	$	22,300		—		—	$	22,300	$	(293	)

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at March 31, 2015:

	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Impaired Originated & PNCI loans	$	3,690	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	(5.0)%-(41.0)%, (8.8)% 8.0%-9.1%, 8.1%
Foreclosed assets	$	2,384	Sales comparison approach	Adjustment for differences between comparable sales	(5.0)%-(30.1)%, (9.3)%

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2014:

	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Impaired Originated & PNCI loans	$	2,480	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	(5.0)%-(42.5)%, (10.1)% 9.09%-9.09%, 9.09%
Foreclosed assets	$	2,611	Sales comparison approach	Adjustment for differences between comparable sales	(5.0)%-(29.4)%, (8.2)%

Estimated Fair Values of Financial Instruments that are Reported at Amortized Cost in Consolidated Balance Sheets

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

	March 31, 2015						December 31, 2014
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	84,682		$	84,682		$	93,150		$	93,150
Cash at Federal Reserve and other banks		196,546			196,546			517,578			517,578
Level 2 inputs:
Securities held to maturity		802,482			817,793			676,426			688,779
Restricted equity securities		16,956			N/A			16,956			N/A
Loans held for sale		5,413			5,413			3,579			3,579
Level 3 inputs:
Loans, net		2,284,828			2,379,343			2,245,938			2,342,570
Indemnification (liability) asset		(433	)		(433	)		(349	)		(349	)
Financial liabilities:
Level 2 inputs:
Deposits		3,349,488			3,349,507			3,380,423			3,380,486
Other borrowings		9,096			9,096			9,276			9,276
Level 3 inputs:
Junior subordinated debt		56,320			46,424			56,272			45,053
	Contract Amount			Fair Value			Contract Amount			Fair Value
Off-balance sheet:
Level 3 inputs:
Commitments	$	668,249		$	6,682		$	656,175		$	6,562
Standby letters of credit		16,307			163			17,531			175
Overdraft privilege commitments		99,002			990			101,060			1,011