Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Assets and Liabilities Reported on Consolidated Statements of Financial Condition at Fair Value on a Recurring Basis

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of September 30, 2013 and December 31, 2012 by level within the fair value hierarchy. As required by GAAP, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	As of September 30, 2013
(Dollar amounts in thousands)	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level I)		Significant Other Observable Inputs (Level II)		Significant Unobservable Inputs (Level III)		Total
Assets:
Securities available for sale
Trust preferred securities	$	—	$	1,720	$	36,768	$	38,488
Municipal securities		—		179,437		—		179,437
Equity securities		1,729		—		—		1,729
Corporate bonds		—		214,720		—		214,720
Mortgage backed securities
U.S. sponsored entities		—		631,071		—		631,071
Private label		—		1,956		—		1,956
Subtotal mortgage-backed securities		—		633,027		—		633,027
Total securities available for sale	$	1,729	$	1,028,904	$	36,768	$	1,067,401
Other Assets
Interest rate caps	$	—	$	638	$	—	$	638
Total other assets	$	—	$	638	$	—	$	638
Liabilities
Other Liabilities
Interest rate swaps	$	—	$	4,258	$	—	$	4,258
Total other liabilities	$	—	$	4,258	$	—	$	4,258

	As of December 31, 2012
(Dollar amounts in thousands)	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level I)		Significant Other Observable Inputs (Level II)		Significant Unobservable Inputs (Level III)		Total
Assets:
Securities available for sale
Trust preferred securities	$	—	$	1,848	$	36,179	$	38,027
Municipal securities		—		190,887		—		190,887
Equity securities		1,818		—		—		1,818
Corporate bonds		—		225,795		—		225,795
Mortgage backed securities
U.S. sponsored entities		—		649,933		—		649,933
Private label		—		4,316		—		4,316
Subtotal mortgage-backed securities		—		654,249		—		654,249
Total securities available for sale	$	1,818	$	1,072,779	$	36,179	$	1,110,776
Other Assets
Interest rate caps	$	—	$	90	$	—	$	90
Total other assets	$	—	$	90	$	—	$	90
Liabilities:
Other Liabilties
Interest rate swaps	$	—	$	5,743	$	—	$	5,743
Total other liabilities	$	—	$	5,743	$	—	$	5,743

Fair Value Measurements Using Significant Unobservable Inputs (Level III)

Fair value measurements using significant unobservable inputs (Level III).

(Dollar amounts in thousands)

	Securities available for sale					Securities available for sale
	Three months ended					Nine months ended
	September 30,					September 30,
	2013			2012		2013		2012
Beginning balance January 1,	$	36,934		$	35,604	$	36,179	$	35,789
Total net realized/unrealized gains (losses)
Included in earnings:
Interest income on securities		3			4		10		11
Net realized loss on securities available for sale		—			—		—		(5	)
Included in other comprehensive income		(169	)		214		579		27
Transfers in and/or out of Level III		—			—		—		—
Purchases, issuances and settlements
Purchases		—			—		—		—
Issuances		—			—		—		—
Sales		—			—		—		—
Settlements		—			—		—		—
Ending balance, September 30,	$	36,768		$	35,822	$	36,768	$	35,822

Changes in Unrealized Gains and Losses Recorded in Earnings for Level III Assets and Liabilities

The following table summarizes changes in unrealized gains and losses recorded in earnings for the three and nine month period ended September 30, 2013 and 2012 for Level III assets and liabilities that are still held at September 30, 2013 and 2012.

(Dollar amounts in thousands)

	Securities available for sale				Securities available for sale
	Three months ended				Nine months ended
	September 30,				September 30,
	2013		2012		2013		2012
Interest income on securities	$	3	$	4	$	10	$	11
Net realized loss on securities available for sale		—		—		—		(5	)
Total	$	3	$	4	$	10	$	6

Schedule of Fair Value Level III Assets Measured at Fair Value on a Recurring or Non- Recurring Basis

For Level III assets measured at fair value on a recurring or non-recurring basis as of September 30, 2013, the significant observable inputs used in the fair value measurements were as follows:

(Dollar amounts in thousands)

	Fair Value at September 30, 2013		Fair Value at December 31, 2012		Valuation Technique	Significant Unobservable Inputs	Range ( Weighted Average)
Trust Preferred Securities	$	36,768	$	36,179	Discounted Cash Flow	Credit Spreads	45-75 (62.5) basis points
						Liquidity Risk Adjustments	20-55 (36) basis points
						Default Rates	.6% -1%
Impaired Loans		16,177		14,740	Discounted Cash Flow	Remaining term	0 yrs to 27.2 yrs (24 yrs)
						Discount Rate	3.625%-16.3% (6.42%)
					Appraisal of collateral	Appraisal adj and liquidation exp	2,000-500,000
Real estate acquired through foreclosure		1,977		2,441	Appraisal of collateral (1)	N/A	N/A
Servicing assets		8		14	Discounted Cash Flow	Remaining term	.2 yrs to 18 yrs (12 yrs)
						Discount Rate	11.25%-12.25% (11.51%)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level III inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.