Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	September 30, 2013
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	1,631		$	—	$	1,631
Mortgage Backed Securities-residential	—		210,227			—		210,227
Mortgage Backed Securities-commercial	—		4,523			—		4,523
Collateralized mortgage obligations	—		456,112			—		456,112
State and municipal	—		187,472			4,524		191,996
Collateralized debt obligations	—		—			7,524		7,524
Equities	662		—			—		662
TOTAL	$	662	$	859,965		$	12,048	$	872,675
Derivative Assets			1,381
Derivative Liabilities			(1,381		)

	December 31, 2012
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	1,886		$	—	$	1,886
Mortgage Backed Securities-residential	—		244,676			—		244,676
Mortgage Backed Securities-commercial	—		5,131			—		5,131
Collateralized mortgage obligations	—		233,320			—		233,320
State and municipal	—		189,574			9,911		199,485
Collateralized debt obligations	—		—			6,122		6,122
Equities	380		—			—		380
TOTAL	$	380	$	674,587		$	16,033	$	691,000
Derivative Assets			2,053
Derivative Liabilities			(2,053		)

Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)

The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2013 and the year ended December 31, 2012.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2013
	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, July 1	$	6,502		$	8,177		$	14,679
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			(305		)	(305		)
Transfers	(1,187		)	—			(1,187		)
Settlements	(790		)	(349		)	(1,139		)
Ending balance, September 30	$	4,525		$	7,523		$	12,048

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2013
	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	9,911		$	6,122		$	16,033
Total realized/unrealized gains or losses
Included in earnings	—						—
Included in other comprehensive income	—			2,499			2,499
Transfers	(1,187		)	—			(1,187		)
Settlements	(4,199		)	(1,098		)	(5,297		)
Ending balance, September 30	$	4,525		$	7,523		$	12,048

The transfers out of level 3 is due to securities that previously were not priced independently are now priced as other level 2 securities.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Balance at December 31, 2012
	Equities			State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	1,711		$	9,525		$	4,771		$	16,007
Total realized/unrealized gains or losses
Included in earnings	(446		)	—			(96		)	(542		)
Included in other comprehensive income	—			—			1,556			1,556
Purchases	—			1,186			—			1,186
Settlements	(1,265		)	(800		)	(109		)	(2,174		)
Ending balance, December 31	$	—		$	9,911		$	6,122		$	16,033

Quantitative information about recurring and non-recurring Level 3

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2013.

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	4,525	Discounted cash flow	Discount rate Probability of default	3.05%-5.50%
Other real estate	$	9,249	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	17,324		Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

Schedule of loans identified as impaired by class of loans

The following tables presents loans identified as impaired by class of loans as of September 30, 2013 and December 31, 2012, which are all considered Level 3.

	September 30, 2013
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	10,792	$	3,353	$	7,439
Farmland	—		—		—
Non Farm, Non Residential	7,997		1,361		6,636
Agriculture	—		—		—
All Other Commercial	4,107		896		3,211
Residential
First Liens	38		—		38
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	22,934	$	5,610	$	17,324

	December 31, 2012
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	17,098	$	3,153	$	13,945
Farmland	891		191		700
Non Farm, Non Residential	7,386		293		7,093
Agriculture	—		—
All Other Commercial	1,209		52		1,157
Residential
First Liens	1,254		126		1,128
Home Equity	179		—		179
Junior Liens	—		—		—
Multifamily	5,540		3,794		1,746
All Other Residential	—				—
Consumer
Motor Vehicle	—				—
All Other Consumer	—				—
TOTAL	$	33,557	$	7,609	$	25,948

Schedule of carrying amount and estimated fair value of financial instruments

The fair value of off-balance sheet items is not considered material.

	September 30, 2013
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	80,899		$	20,404	$	60,495		$	—	$	80,899
Federal funds sold	3,420			—		3,420			—		3,420
Securities available—for—sale	872,675			662		859,965			12,048		872,675
Restricted stock	21,050			—		—			—		—
Loans, net	1,786,601			—					1,845,392		1,845,392
FDIC Indemnification Asset	1,171			—		1,171			—		1,171
Accrued interest receivable	11,767			—		3,475			8,292		11,767
Deposits	(2,487,028		)	—		(2,489,329		)	—		(2,489,329		)
Short—term borrowings	(27,929		)	—		(27,929		)	—		(27,929		)
Federal Home Loan Bank advances	(58,362		)	—		(60,721		)	—		(60,721		)
Accrued interest payable	(770		)	—		(770		)	—		(770		)

	December 31, 2012
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	87,230		$	21,333	$	65,897		$	—	$	87,230
Federal funds sold	20,800			—		20,800			—		20,800
Securities available—for—sale	691,000			380		674,587			16,033		691,000
Restricted stock	21,292			—		—			—		—
Loans, net	1,829,978			—		—			1,916,256		1,916,256
FDIC Indemnification Asset	2,632			—		2,632			—		2,632
Accrued interest receivable	12,024			—		2,980			9,044		12,024
Deposits	(2,276,134		)	—		(2,280,910		)	—		(2,280,910		)
Short—term borrowings	(40,551		)	—		(40,551		)	—		(40,551		)
Federal Home Loan Bank advances	(119,705		)	—		(124,933		)	—		(124,933		)
Accrued interest payable	(1,163		)	—		(1,163		)	—		(1,163		)