FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

Assets and Liabilities Measured at Fair Value on a Recurring Basis at December 31 were as follows:

			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
	(Dollars in thousands)
	December 31, 2012
Recurring fair value measurements
Assets
Securities available for sale
U.S. Government agency securities	$	20,822	$	—	$	20,822	$	—
Agency mortgage-backed securities	221,425		—		221,425		—
Agency collateralized mortgage obligations	68,376		—		68,376		—
Private mortgage-backed securities	3,532		—		—		3,532
Single issuer trust preferred securities issued by banks and insurers	2,240		—		2,240		—
Pooled trust preferred securities issued by banks and insurers	2,981		—		—		2,981
Marketable securities	9,910		9,910		—		—
Loans held for sale	48,187		—		48,187		—
Derivative instruments	30,528		—		30,528		—
Liabilities
Derivative Instruments	46,793		—		46,793		—
Total recurring fair value measurements	$	361,208	$	9,910	$	344,785	$	6,513
Nonrecurring fair value measurements

Assets
Collateral Dependent Impaired Loans	$	7,817	$	—	$	—	$	7,817	$	(1,284	)
Other Real Estate Owned	11,974		—		—		11,974		—
Total nonrecurring fair value measurements	$	19,791	$	—	$	—	$	19,791	$	(1,284	)
	December 31, 2011
Recurring fair value measurements
Assets
Trading securities	$	8,240	$	8,240	$	—	$	—
Securities available for sale
Agency mortgage-backed securities	238,391		—		238,391		—
Agency collateralized mortgage obligations	53,801		—		53,801		—
Private mortgage-backed securities	6,110		—		—		6,110
Single issuer trust preferred securities issued by banks and insurers	4,210		—		—		4,210
Pooled trust preferred securities issued by banks and insurers	2,820		—		—		2,820
Loans held for sale	20,500		—		20,500		—
Derivative instruments	25,841		—		25,841		—
Liabilities
Derivative instruments	44,407		—		44,407		—
Total recurring fair value measurements	315,506		8,240		294,126		13,140
Nonrecurring fair value measurements:
Assets
Impaired loans (1)	36,861		—		—		36,861		(2,682		)
Other real estate owned	6,658		—		—		6,658		—
Total nonrecurring fair value measurements	43,519		—		—		43,519		(2,682		)

(1) Represents all impaired loans with an associated specific reserve at December 31, 2011. Included in this amount are $9.0 million of collateral dependent loans.

Reconciliation of Assets on Recurring Basis Using Significant Unobservable Inputs

The table below presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). These instruments were valued using pricing models and discounted cash flow methodologies.

Reconciliation for All Assets and Liabilities Measured at Fair Value on

a Recurring Basis Using Significant Unobservable Inputs (Level 3)

	Securities Available for Sale
	Pooled Trust Preferred Securities			Single Trust Preferred Securities			Private Mortgage- Backed Securities			Total
	(Dollars in thousands)
Year-to-date
Balance at December 31, 2010	$	2,828		$	4,221		$	10,254		$	17,303
Gains and losses (realized/unrealized)
Included in earnings	(8		)	—			(235		)	(243		)
Included in other comprehensive income	37			(11		)	49			75
Purchases	—			—			—			—
Sales	—			—			—			—
Issuances	—			—			—			—
Settlements	(37		)	—			(3,958		)	(3,995		)
Transfers in to level 3	—			—			—			—
Balance at December 31, 2011	$	2,820		$	4,210		$	6,110		$	13,140
Gains and losses (realized/unrealized)
Included in earnings	—			—			(76		)	(76		)
Included in other comprehensive income	313			703			411			1,427
Purchases	—			—			—			—
Sales	—			—			—			—
Issuances	—			—			—			—
Settlements	(152		)	—			(2,913		)	(3,065		)
Transfers into (out of) level 3	—			(4,913		)	—			(4,913		)
Balance at December 31, 2012	$	2,981		$	—		$	3,532		$	6,513

Schedule of Unobservable Inputs for Level 3 Securities

The following table sets forth certain unobservable inputs regarding the Company's investment in securities that are classified as Level 3:

	Fair Value at December 31, 2012		Valuation Technique(s)	Unobservable Inputs	Range	Weighted Average
	(Dollars in Thousands)
Pooled trust preferred securities	$	2,981	Discounted cash flow methodology	Cumulative prepayment	0% - 76%	7.5	%
				Cumulative default	3.0% - 100%	19.6	%
				Loss given default	85% - 100%	94.9	%
				Cure given default	0% - 75%	33.8	%
Private mortgage-backed securities	$	3,532	Multi-dimensional spreads table	Cumulative prepayment rate	10.3% - 14.5%	13.9	%
				Constant default rate	0.9% - 20.4%	4.0	%
				Severity	20.0% - 55.0%	33.6	%
Impaired loans	$	7,817	Appraisals of collateral (1)
Other real estate owned	$	11,974	Appraisals of collateral (1)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.

Schedule of Fair Values and Related Carrying Amounts by Balance Sheet Grouping

The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated:

					Fair Value Measurements at Reporting Date Using
	Book Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2012
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. Treasury securities	$	1,013	$	1,134	$	—	$	1,134	$	—
Agency mortgage-backed securities	72,360		76,593		—		76,593		—
Agency collateralized mortgage obligations	97,507		100,380		—		100,380		—
State, county, and municipal securities	915		926		—		926		—
Single issuer trust preferred securities issued by banks	1,516		1,526		—		1,526		—
Corporate debt securities	5,007		5,265		—		5,265		—
Loans, net of allowance for loan losses(b)	4,467,177		4,462,580		—		—		4,462,580
Financial liabilities
Time certificates of deposits(c)	$	753,125	$	759,516	$	—	$	759,516	$	—
Federal home loan bank advances and other borrowings(c)	283,569		293,580		—		293,580		—
Wholesale and customer repurchase agreements(c)	203,359		201,189		—		—		201,189
Junior subordinated debentures(d)	74,127		74,416		—		74,416		—
Subordinated debentures(c)	30,000		22,762		—		—		22,762
	December 31, 2011
Financial assets	(Dollars in thousands)
Securities held to maturity(a)
U.S. Treasury securities	$	1,014	$	1,117	$	—	$	1,117	$	—
Agency mortgage-backed securities	109,553		113,959		—		113,959		—
Agency collateralized mortgage obligations	77,804		80,298		—		80,298

State, county, and municipal securities	3,576		3,610		—		3,610		—
Single issuer trust preferred securities issued by banks	8,000		7,346		—		7,346		—
Corporate debt securities	5,009		5,164		—		5,164		—
Loans, net of allowance for loan losses(b)	3,746,130		3,807,938		—		—		3,807,938
Financial liabilities
Time certificates of deposits(c)	$	630,162	$	639,333	$	—	$	639,333	$	—
Federal home loan bank advances and other borrowings(c)	229,701		233,880		—		233,880		—
Wholesale and customer repurchase agreements(c)	216,128		219,857		—		—		219,857
Junior subordinated debentures(d)	61,857		60,620		—		60,620		—
Subordinated debentures(c)	30,000		27,217		—		—		27,217

(a) The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis.

(b) Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows.

(c) Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

(d) Fair value was determined based upon market prices of securities with similar terms and maturities.