10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 0-20293

UNION BANKSHARES CORPORATION

(Exact name of registrant as specified in its charter)

VIRGINIA	54-1598552
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1051 East Cary Street

Suite 1200

Richmond, Virginia 23219

(Address of principal executive offices) (Zip Code)

(804) 633-5031

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

The number of shares of common stock outstanding as of May 1, 2015 was 45,113,062.

UNION BANKSHARES CORPORATION

FORM 10-Q

INDEX

ITEM		PAGE
	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014	2
	Consolidated Statements of Income for the three months ended March 31, 2015 and 2014	3
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 and 2014	4
	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2015 and 2014	5
	Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014	6
	Notes to Consolidated Financial Statements	7
	Report of Independent Registered Public Accounting Firm	41
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	63
Item 4.	Controls and Procedures	65
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	66
Item 1A.	Risk Factors	66
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	66
Item 6.	Exhibits	68
	Signatures	69

ii

Glossary of Acronyms

ALCO	–	Asset Liability Committee
ALL	–	Allowance for loan losses
ASC	–	Accounting Standards Codification
ASU	–	Accounting Standards Update
ATM	–	Automated teller machine
the Bank	–	Union Bank & Trust, formerly known as Union First Market Bank
bps	–	Basis points
the Company	–	Union Bankshares Corporation
Dodd-Frank Act	–	Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
EPS	–	Earnings per share
Exchange Act	–	Securities Exchange Act of 1934
FASB	–	Financial Accounting Standards Board
FDIC	–	Federal Deposit Insurance Corporation
Federal Reserve	–	Board of Governors of the Federal Reserve System
Federal Reserve Bank	–	Federal Reserve Bank of Richmond
FHLB	–	Federal Home Loan Bank of Atlanta
GAAP	–	Accounting principles generally accepted in the United States
HELOC	–	Home equity line of credit
LIBOR	–	London Interbank Offered Rate
NPA	–	Nonperforming assets
OREO	–	Other real estate owned
OTTI	–	Other than temporary impairment
PCI	–	Purchased credit impaired
SEC	–	U.S. Securities and Exchange Commission
StellarOne	–	StellarOne Corporation
TDR	–	Troubled debt restructuring
UMG	–	Union Mortgage Group, Inc.

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

	March 31,		December 31,
	2015		2014
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	112,793	$	112,752
Interest-bearing deposits in other banks		24,256		19,344
Money market investments		1		1
Federal funds sold		312		1,163
Total cash and cash equivalents		137,362		133,260
Securities available for sale, at fair value		1,089,664		1,102,114
Restricted stock, at cost		53,146		54,854
Loans held for sale		46,048		42,519
Loans held for investment, net of deferred fees and costs		5,387,755		5,345,996
Less allowance for loan losses		30,977		32,384
Net loans held for investment		5,356,778		5,313,612
Premises and equipment, net		134,429		135,247
Other real estate owned, net of valuation allowance		25,434		28,118
Core deposit intangibles, net		29,533		31,755
Goodwill		293,522		293,522
Bank owned life insurance		140,143		139,005
Other assets		82,500		84,637
Total assets	$	7,388,559	$	7,358,643
LIABILITIES
Noninterest-bearing demand deposits	$	1,274,935	$	1,199,378
Interest-bearing deposits		4,395,293		4,439,392
Total deposits		5,670,228		5,638,770
Securities sold under agreements to repurchase		39,434		44,393
Other short-term borrowings		335,000		343,000
Long-term borrowings		299,914		299,542
Other liabilities		57,067		55,769
Total liabilities		6,401,643		6,381,474
Commitments and contingencies (Note 7)
STOCKHOLDERS' EQUITY
Common stock, $1.33 par value, shares authorized 100,000,000; issued and outstanding, 45,155,024 shares and 45,162,853 shares, respectively.		59,721		59,795
Surplus		641,882		643,443
Retained earnings		270,618		261,676
Accumulated other comprehensive income		14,695		12,255
Total stockholders' equity		986,916		977,169
Total liabilities and stockholders' equity	$	7,388,559	$	7,358,643

See accompanying notes to consolidated financial statements.

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except share data)

	Three Months Ended
	March 31,		March 31,
	2015		2014
Interest and dividend income:
Interest and fees on loans	$	60,452	$	61,269
Interest on deposits in other banks		17		12
Interest and dividends on securities:
Taxable		3,807		3,648
Nontaxable		3,324		3,279
Total interest and dividend income		67,600		68,208
Interest expense:
Interest on deposits		3,321		2,256
Interest on federal funds purchased		1		24
Interest on short-term borrowings		249		119
Interest on long-term borrowings		2,060		2,051
Total interest expense		5,631		4,450
Net interest income		61,969		63,758
Provision for loan losses		1,750		-
Net interest income after provision for loan losses		60,219		63,758
Noninterest income:
Service charges on deposit accounts		4,214		4,298
Other service charges and fees		3,584		3,344
Fiduciary and asset management fees		2,219		2,303
Gains on sales of mortgage loans, net of commissions		2,379		2,297
Gains on securities transactions, net		193		29
Bank owned life insurance income		1,135		1,089
Other operating income		1,330		428
Total noninterest income		15,054		13,788
Noninterest expenses:
Salaries and benefits		27,492		29,214
Occupancy expenses		5,133		5,180
Furniture and equipment expenses		2,813		2,868
Printing, postage, and supplies		1,370		1,223
Communications expense		1,179		1,098
Technology and data processing		3,255		3,074
Professional services		1,348		1,055
Marketing and advertising expense		1,687		1,065
FDIC assessment premiums and other insurance		1,398		1,393
Other taxes		1,551		1,385
Loan-related expenses		684		542
OREO and credit-related expenses		1,186		1,451
Amortization of intangible assets		2,222		2,616
Acquisition and conversion costs		-		13,168
Other expenses		2,522		1,953
Total noninterest expenses		53,840		67,285
Income before income taxes		21,433		10,261
Income tax expense		5,732		2,553
Net income	$	15,701	$	7,708
Earnings per common share:
Basic	$	0.35	$	0.16
Diluted	$	0.35	$	0.16
Dividends declared per common share	$	0.15	$	0.14
Weighted average number of common shares outstanding:
Basic		45,105,969		46,977,416
Diluted		45,187,516		47,080,661

See accompanying notes to consolidated financial statements.

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

	Three Months Ended
	March 31,
	2015			2014
Net income	$	15,701		$	7,708
Other comprehensive income (loss):
Cash flow hedges:
Change in fair value of cash flow hedges		(1,490	)		575
Reclassification adjustment for losses included in net income (net of taxes of $146 and $25 for the three months ended March 31, 2015 and 2014, respectively)		272			47
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during period (net of taxes of $2,037 and $3,399 for the three months ended March 31, 2015 and 2014, respectively)		3,783			6,313
Reclassification adjustment for (gains) losses included in net income (net of taxes of $68 and $10 for the three months ended March 31, 2015 and 2014, respectively)		(125	)		(19	)
Other comprehensive income (loss)		2,440			6,916
Comprehensive income	$	18,141		$	14,624

See accompanying notes to consolidated financial statements.

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(Dollars in thousands, except share amounts)

	Common Stock			Surplus			Retained Earnings (1)			Accumulated Other Comprehensive Income (Loss)			Total
Balance - December 31, 2013	$	33,020		$	170,770		$	236,210		$	(2,190	)	$	437,810
Net income - 2014								7,708						7,708
Other comprehensive loss (net of taxes of $3,414)											6,916			6,916
Issuance of common stock in regard to acquisition (22,147,874 shares)		29,457			520,066									549,523
Dividends on common stock ($0.14 per share)								(6,332	)					(6,332	)
Stock purchased under stock repurchase plan (510,515 shares)		(679	)		(12,286	)								(12,965	)
Issuance of common stock under Dividend Reinvestment Plan (10,843 shares)		14			244			(258	)					-
Issuance of common stock under Equity Compensation Plans (24,465 shares)		33			425									458
Vesting of restricted stock under Equity Compensation Plans (13,310 shares)		18			(18	)								-
Net settle for taxes on Restricted Stock Awards (61,732 shares)		(83	)		(1,432	)								(1,515	)
Stock-based compensation expense					374									374
Balance - March 31, 2014	$	61,780		$	678,143		$	237,328		$	4,726		$	981,977
Balance - December 31, 2014	$	59,795		$	643,443		$	261,676		$	12,255		$	977,169
Net income - 2015								15,701						15,701
Other comprehensive income (net of taxes of $2,115)											2,440			2,440
Dividends on common stock ($0.15 per share)								(6,431	)					(6,431	)
Stock purchased under stock repurchase plan (102,843 shares)		(137	)		(2,250	)								(2,387	)
Issuance of common stock under Dividend Reinvestment Plan (15,781 shares)		21			307			(328	)					-
Issuance of common stock under Equity Compensation Plans (7,686 shares)		10			137									147
Issuance of common stock for services rendered (4,576 shares)		6			94									100
Vesting of restricted stock under Equity Compensation Plans (29,140 shares)		39			(39	)								-
Net settle for taxes on Restricted Stock Awards (9,869 shares)		(13	)		(200	)								(213	)
Stock-based compensation expense					390									390
Balance - March 31, 2015	$	59,721		$	641,882		$	270,618		$	14,695		$	986,916

⁽¹⁾ Retained earnings as of December 31, 2013 and 2014 includes the cumulative impact of $429,000 and $856,000, respectively, resulting from the adoption of ASU 2014-01 “Accounting For Investments in Qualified Affordable Housing Projects.” See Note 1 “Accounting Policies” for additional information.

See accompanying notes to consolidated financial statements.

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2015 AND 2014

(Dollars in thousands)

	2015			2014
Operating activities:
Net income	$	15,701		$	7,708
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:
Depreciation of bank premises and equipment		2,705			2,670
Writedown of OREO		590			256
Amortization, net		3,625			3,465
Amortization related to acquisition, net		371			167
Provision for loan losses		1,750			-
Gains on securities transactions, net		(193	)		(29	)
(Increase) decrease in loans held for sale, net		(3,529	)		15,809
Gains on sales of other real estate owned, net		(38	)		(23	)
Losses on sales of bank premises, net		57			233
Stock-based compensation expenses		390			374
Issuance of common stock for services		100			-
Net (increase) decrease in other assets		(1,031	)		23,978
Net increase (decrease) in other liabilities		80			(3,542	)
Net cash and cash equivalents provided by operating activities		20,578			51,066
Investing activities:
Purchases of securities available for sale		(29,863	)		(241,144	)
Proceeds from sales of securities available for sale		12,499			259,077
Proceeds from maturities, calls and paydowns of securities available for sale		34,133			31,851
Net (increase) decrease in loans		(44,401	)		3,292
Net increase in bank premises and equipment		(2,346	)		(2,221	)
Proceeds from sales of other real estate owned		2,714			3,800
Improvements to other real estate owned		(56	)		-
Cash paid for equity-method investments		(355	)		-
Cash acquired in bank acquisitions		-			49,989
Net cash and cash equivalents (used in) provided by investing activities		(27,675	)		104,644
Financing activities:
Net increase (decrease) in noninterest-bearing deposits		75,557			(85,051	)
Net (decrease) increase in interest-bearing deposits		(43,024	)		57,387
Net decrease in short-term borrowings		(12,959	)		(38,901	)
Net increase in long-term borrowings		509			436
Cash dividends paid - common stock		(6,431	)		(6,332	)
Repurchase of common stock		(2,387	)		(12,965	)
Issuance of common stock		147			458
Taxes paid related to net share settlement of equity awards		(213	)		(1,515	)
Net cash and cash equivalents provided by (used in) financing activities		11,199			(86,483	)
Increase in cash and cash equivalents		4,102			69,227
Cash and cash equivalents at beginning of the period		133,260			73,023
Cash and cash equivalents at end of the period	$	137,362		$	142,250
Supplemental Disclosure of Cash Flow Information
Cash payments for:
Interest	$	6,925		$	6,212
Income taxes		3,000			5,800
Supplemental schedule of noncash investing and financing activities
Unrealized gain on securities available for sale	$	5,627		$	9,683
Changes in fair value of interest rate swap loss		(1,218	)		622
Transfers between loans and other real estate owned		124			1,085
Transfers from bank premises to other real estate owned		402			-
Issuance of common stock in exchange for net assets in acquisition		-			549,523
Transactions related to bank acquisition
Assets acquired		-			2,957,521
Liabilities assumed		-			2,642,120

See accompanying notes to consolidated financial statements.

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UNION BANKSHARES CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

1. ACCOUNTING POLICIES

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Significant inter-company accounts and transactions have been eliminated in consolidation.

The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and follow general practice within the banking industry. Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by U.S. GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of the interim periods presented have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year.

These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K. If needed, certain previously reported amounts have been reclassified to conform to current period presentation.

Adoption of New Accounting Standards

The Company adopted ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects” as of January 1, 2015. As permitted by the guidance, the Company adopted the proportional amortization method of accounting for qualified affordable housing projects. The proportional amortization method amortizes the cost of the investment over the period in which the Company will receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of income taxes attributable to continuing operations. Historically, these investments were accounted for under the equity method of accounting and the passive losses related to the investments were recognized within noninterest expense. The Company adopted this guidance in the first quarter of 2015 with retrospective application as required by the ASU. Prior period results and related metrics have been recasted to conform to this presentation. The recast of prior period information did not have a material impact on the Company’s financial condition or results of operations.

For the three months ended March 31, 2015, the Company recognized amortization of $175,000 and tax credits of $257,000 associated with these investments within “Income tax expense” on the Company’s Consolidated Statements of Income. The carrying value of the Company’s investments in these qualified affordable housing projects was $9.8 million and $10.4 million as of March 31, 2015 and December 31, 2014, respectively. The Company recorded a liability of $5.1 million for the related unfunded commitments as of March 31, 2015, which are expected to be paid from 2015 to 2018.

Recent Accounting Pronouncements

In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements.

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In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” The amendments in this ASU amend the consolidation requirements in ASC 810, Consolidation, and significantly change the consolidation analysis required under U.S. GAAP. Under this guidance, limited partnerships will be considered variable interest entities (“VIEs”) unless the limited partners have either substantive kick-out or participating rights; this amendment will result in more partnerships being considered VIEs, but it will be less likely that a general partner will consolidate a limited partnership. The amendments also change the effect that fees paid to a decision maker or service provider have on the consolidation analysis; it is less likely that the fees themselves will be considered a variable interest, that an entity will be a VIE, or that consolidation will result. The changes modify how a reporting entity considers how its variable interests affect its consolidation process; the related party tiebreaker test and mandatory consolidation by one of the related parties will have to be performed less frequently than under current U.S. GAAP. For entities other than limited partnerships, the amendments clarify how to determine whether the equity holders have power over the entity and could affect whether the entity is a VIE. The amendments are expected to result in the deconsolidation of many entities. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company is currently assessing the impact that ASU 2015-02 will have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The ASU does not change the existing recognition and measurement guidance for debt issuance costs but requires that debt issuance costs related to a debt liability recorded on the balance sheet be present in the balance sheet as a direct deduction from the carrying amount of that debt liability. The amendments should be disclosed consistent with the disclosure requirement of a change in accounting principle and applied on a retrospective basis. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of ASU 2015-03 to have a material impact on its consolidated financial statements.

2. ACQUISITIONS

The Company’s merger and acquisition strategy focuses on high-growth areas with strong market demographics and targets organizations that have a comparable corporate culture, strong performance, and good asset quality, among other factors. On January 1, 2014, the Company completed the acquisition of StellarOne, a bank holding company based in Charlottesville, Virginia, in an all-stock transaction. StellarOne’s common shareholders received 0.9739 shares of the Company’s common stock in exchange for each share of StellarOne’s common stock, resulting in the Company issuing 22,147,874 shares of common stock at a fair value of $549.5 million. The fair value of assets acquired equaled $2.96 billion and liabilities assumed equaled $2.64 billion. As a result of the transaction, StellarOne’s former bank subsidiary, StellarOne Bank, became a wholly owned bank subsidiary of the Company. On May 9, 2014, StellarOne Bank was merged with and into the Bank. Information regarding this acquisition is included in the Company’s 2014 Annual Report on Form 10-K. The Company did not complete any acquisitions of businesses in the first quarter of 2015.

The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the three months ended March 31, 2015 and 2014 (dollars in thousands):

	For the Three Months Ended March 31,
	2015			2014
Loans	$	639		$	(546	)
Core deposit intangible		(2,222	)		(2,616	)
Borrowings		137			75
Time deposits		1,075			2,920
Net impact to income before taxes	$	(371	)	$	(167	)

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3. SECURITIES

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of March 31, 2015 and December 31, 2014 are summarized as follows (dollars in thousands):

	Amortized		Gross Unrealized					Estimated
	Cost		Gains		(Losses)			Fair Value
March 31, 2015
U.S. government and agency securities	$	8,236	$	359	$	-		$	8,595
Obligations of states and political subdivisions		431,355		21,594		(511	)		452,438
Corporate bonds		78,400		169		(428	)		78,141
Mortgage-backed securities		529,188		11,729		(454	)		540,463
Other securities		9,980		47		-			10,027
Total securities	$	1,057,159	$	33,898	$	(1,393	)	$	1,089,664
December 31, 2014
U.S. government and agency securities	$	8,313	$	166	$	(25	)	$	8,454
Obligations of states and political subdivisions		427,483		18,885		(721	)		445,647
Corporate bonds		78,744		244		(308	)		78,680
Mortgage-backed securities		550,716		9,411		(798	)		559,329
Other securities		9,979		31		(6	)		10,004
Total securities	$	1,075,235	$	28,737	$	(1,858	)	$	1,102,114

Due to restrictions placed upon the Bank’s common stock investment in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications and are included as a separate line item on the Company’s Consolidated Balance Sheets. At March 31, 2015, the FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the Bank’s total assets. At December 31, 2014, the FHLB required the Bank to maintain stock in an amount equal to 4.5% of outstanding borrowings and a specific percentage of the Bank’s total assets. The Federal Reserve Bank required the Bank to maintain stock with a par value equal to 6% of its outstanding capital at both March 31, 2015 and December 31, 2014. Restricted equity securities consist of Federal Reserve Bank stock in the amount of $23.8 million for both March 31, 2015 and December 31, 2014 and FHLB stock in the amount of $29.3 million and $31.0 million as of March 31, 2015 and December 31, 2014, respectively.

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The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	Less than 12 months					More than 12 months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
March 31, 2015
Obligations of states and political subdivisions	$	18,293	$	(265	)	$	12,469	$	(246	)	$	30,762	$	(511	)
Mortgage-backed securities		41,164		(130	)		37,794		(324	)		78,958		(454	)
Corporate bonds and other securities		18,617		(178	)		18,758		(250	)		37,375		(428	)
Totals	$	78,074	$	(573	)	$	69,021	$	(820	)	$	147,095	$	(1,393	)
December 31, 2014
U.S. government and agency securities	$	7,055	$	(25	)	$	-	$	-		$	7,055	$	(25	)
Obligations of states and political subdivisions		13,602		(93	)		42,514		(628	)		56,116		(721	)
Mortgage-backed securities		60,151		(362	)		49,581		(436	)		109,732		(798	)
Corporate bonds and other securities		43,923		(244	)		4,309		(70	)		48,232		(314	)
Totals	$	124,731	$	(724	)	$	96,404	$	(1,134	)	$	221,135	$	(1,858	)

As of March 31, 2015, there were $69.0 million, or 30 issues, of individual securities that had been in a continuous loss position for more than 12 months. Additionally, these securities had an unrealized loss of $820,000 and consisted of municipal obligations, mortgage-backed securities, and corporate bonds. As of December 31, 2014, there were $96.4 million, or 60 issues, of individual securities that had been in a continuous loss position for more than 12 months. Additionally, these securities had an unrealized loss of $1.1 million and consisted of municipal obligations, mortgage-backed securities, corporate bonds, and other securities. The Company has determined that these securities are temporarily impaired as of March 31, 2015 and December 31, 2014 for the reasons set out below:

U.S. Government agencies and corporations. The unrealized losses in this category of investments were caused by interest rate fluctuations. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of these investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.

Mortgage-backed securities. This category’s unrealized losses are primarily the result of interest rate fluctuations. Since the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired. Also, the majority of the Company’s mortgage-backed securities are agency securities, which have a government guarantee.

State and political subdivisions. This category’s unrealized losses are primarily the result of interest rate fluctuations and also a certain few ratings downgrades brought about by the impact of the economic downturn on states and political subdivisions. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.

Corporate debt securities. The Company’s unrealized losses in corporate debt securities are related to both interest rate fluctuations and ratings downgrades for a limited number of securities. The majority of the securities remain investment grade and the Company’s analysis did not indicate the existence of a credit loss. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.

- 10 -

During each quarter, the Company conducts an assessment of the securities portfolio for OTTI consideration. The assessment considers factors such as external credit ratings, delinquency coverage ratios, market price, management’s judgment, expectations of future performance, and relevant industry research and analysis. An impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Based on the assessment for the quarter ended March 31, 2015, and in accordance with the guidance, no OTTI was recognized.

The following table presents the amortized cost and estimated fair value of securities as of March 31, 2015 and December 31, 2014, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2015				December 31, 2014
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	20,599	$	20,763	$	19,345	$	19,434
Due after one year through five years		49,747		51,522		41,545		43,070
Due after five years through ten years		295,577		304,936		306,900		314,044
Due after ten years		691,236		712,443		707,445		725,566
Total securities available for sale	$	1,057,159	$	1,089,664	$	1,075,235	$	1,102,114

Securities with a market value of $402.3 million and $397.0 million as of March 31, 2015 and December 31, 2014, respectively, were pledged to secure public deposits, repurchase agreements, and for other purposes.

4. LOANS AND ALLOWANCE FOR LOAN LOSSES

Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31,		December 31,
	2015		2014
Commercial:
Commercial Construction	$	358,436	$	341,280
Commercial Real Estate - Owner Occupied		898,222		875,443
Commercial Real Estate - Non-Owner Occupied		1,518,590		1,509,159
Raw Land and Lots		197,759		211,225
Single Family Investment Real Estate		416,984		412,494
Commercial and Industrial		426,490		393,776
Other Commercial		80,416		81,106
Consumer:
Mortgage		466,804		478,151
Consumer Construction		65,898		74,168
Indirect Auto		203,369		199,411
Indirect Marine		43,643		43,190
HELOCs		491,116		500,579
Credit Card		24,691		24,225
Other Consumer		195,337		201,789
Total	$	5,387,755	$	5,345,996

- 11 -

The following table shows the aging of the Company’s loan portfolio, by class, at March 31, 2015 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing		PCI		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	374	$	-	$	-	$	3,090	$	1,953	$	353,019	$	358,436
Commercial Real Estate - Owner Occupied		1,606		174		1,357		31,004		4,954		859,127		898,222
Commercial Real Estate - Non-Owner Occupied		1,344		656		328		19,575		2,655		1,494,032		1,518,590
Raw Land and Lots		235		58		109		6,055		1,059		190,243		197,759
Single Family Investment Real Estate		1,206		158		251		16,299		1,302		397,768		416,984
Commercial and Industrial		1,453		271		468		3,338		2,540		418,420		426,490
Other Commercial		281		71		65		1,794		69		78,136		80,416
Consumer:
Mortgage		13,710		1,862		3,313		6,381		2,397		439,141		466,804
Consumer Construction		717		700		469		504		-		63,508		65,898
Indirect Auto		1,345		181		272		-		-		201,571		203,369
Indirect Marine		52		-		-		-		48		43,543		43,643
HELOCs		3,014		1,119		685		1,889		205		484,204		491,116
Credit Card		114		64		265		-		-		24,248		24,691
Other Consumer		2,138		1,907		350		1,417		203		189,322		195,337
Total	$	27,589	$	7,221	$	7,932	$	91,346	$	17,385	$	5,236,282	$	5,387,755

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2014 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing		PCI		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	815	$	-	$	-	$	3,782	$	968	$	335,715	$	341,280
Commercial Real Estate - Owner Occupied		621		1,542		1,683		31,167		1,060		839,370		875,443
Commercial Real Estate - Non-Owner Occupied		3,984		237		91		28,869		5,902		1,470,076		1,509,159
Raw Land and Lots		145		44		194		7,427		2,359		201,056		211,225
Single Family Investment Real Estate		2,825		338		734		16,879		2,070		389,648		412,494
Commercial and Industrial		1,250		529		549		3,855		3,286		384,307		393,776
Other Commercial		42		2		-		2,256		74		78,732		81,106
Consumer:
Mortgage		12,851		4,300		4,095		7,394		2,485		447,026		478,151
Consumer Construction		120		-		844		516		-		72,688		74,168
Indirect Auto		1,593		263		317		-		-		197,238		199,411
Indirect Marine		150		-		-		-		201		42,839		43,190
HELOCs		3,082		955		820		2,000		258		493,464		500,579
Credit Card		232		108		219		-		-		23,666		24,225
Other Consumer		1,587		412		501		1,643		592		197,054		201,789
Total	$	29,297	$	8,730	$	10,047	$	105,788	$	19,255	$	5,172,879	$	5,345,996

Nonaccrual loans totaled $17.4 million and $19.3 million at March 31, 2015 and December 31, 2014, respectively. All nonaccrual loans were included in the impaired loan disclosures in 2015 and 2014. Loans past due 90 days or more and accruing interest totaled $7.9 million and $10.0 million at March 31, 2015 and December 31, 2014, respectively.

- 12 -

The following table shows the PCI commercial and consumer loan portfolios, by class and their delinquency status, at March 31, 2015 (dollars in thousands):

	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Construction	$	-	$	599	$	2,491	$	3,090
Commercial Real Estate - Owner Occupied		1,357		1,966		27,681		31,004
Commercial Real Estate - Non-Owner Occupied		747		321		18,507		19,575
Raw Land and Lots		155		259		5,641		6,055
Single Family Investment Real Estate		1,721		697		13,881		16,299
Commercial and Industrial		214		174		2,950		3,338
Other Commercial		66		803		925		1,794
Consumer:
Mortgage		1,123		2,574		2,684		6,381
Consumer Construction		-		504		-		504
HELOCs		146		527		1,216		1,889
Other Consumer		87		37		1,293		1,417
Total	$	5,616	$	8,461	$	77,269	$	91,346

The following table shows the PCI commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2014 (dollars in thousands):

	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Construction	$	-	$	652	$	3,130	$	3,782
Commercial Real Estate - Owner Occupied		1,138		843		29,186		31,167
Commercial Real Estate - Non-Owner Occupied		523		1,255		27,091		28,869
Raw Land and Lots		522		-		6,905		7,427
Single Family Investment Real Estate		1,327		1,311		14,241		16,879
Commercial and Industrial		144		538		3,173		3,855
Other Commercial		107		1,133		1,016		2,256
Consumer:
Mortgage		1,975		2,866		2,553		7,394
Consumer Construction		-		516		-		516
HELOCs		356		728		916		2,000
Other Consumer		89		171		1,383		1,643
Total	$	6,181	$	10,013	$	89,594	$	105,788

- 13 -

The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, excluding PCI loans related to the StellarOne acquisition, by class at March 31, 2015 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	6,242	$	6,517	$	-	$	6,320	$	52
Commercial Real Estate - Owner Occupied		17,435		17,590		-		16,580		199
Commercial Real Estate - Non-Owner Occupied		13,488		15,638		-		16,086		124
Raw Land and Lots		41,245		41,513		-		41,561		490
Single Family Investment Real Estate		3,874		4,574		-		4,271		36
Commercial and Industrial		2,889		3,427		-		3,204		26
Other Commercial		949		955		-		957		14
Consumer:
Mortgage		3,234		3,342		-		3,312		15
Indirect Auto		-		6		-		3		-
HELOCs		465		598		-		543		1
Other Consumer		86		206		-		153		-
Total impaired loans without a specific allowance	$	89,907	$	94,366	$	-	$	92,990	$	957
Loans with a specific allowance
Commercial:
Commercial Construction	$	40	$	40	$	4	$	37	$	-
Commercial Real Estate - Owner Occupied		7,142		7,257		526		7,177		67
Commercial Real Estate - Non-Owner Occupied		6,284		6,284		146		7,408		96
Raw Land and Lots		628		628		11		700		8
Single Family Investment Real Estate		3,537		3,562		281		3,552		38
Commercial and Industrial		4,340		7,610		459		4,443		37
Other Commercial		336		356		31		348		5
Consumer:
Mortgage		1,390		1,428		105		1,398		3
Consumer Construction		378		378		35		378		5
Indirect Marine		48		149		4		59		-
HELOCs		436		436		4		436		4
Other Consumer		290		409		98		390		1
Total impaired loans with a specific allowance	$	24,849	$	28,537	$	1,704	$	26,326	$	264
Total impaired loans	$	114,756	$	122,903	$	1,704	$	119,316	$	1,221

- 14 -

The following table shows the Company’s impaired loans, by class, at December 31, 2014 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	5,281	$	5,367	$	-	$	5,755	$	165
Commercial Real Estate - Owner Occupied		15,722		16,430		-		16,774		737
Commercial Real Estate - Non-Owner Occupied		22,917		22,917		-		23,209		1,116
Raw Land and Lots		44,790		47,662		-		47,988		2,124
Single Family Investment Real Estate		4,197		4,881		-		6,534		170
Commercial and Industrial		4,453		7,933		-		5,070		121
Other Commercial		1,536		1,538		-		1,624		90
Consumer:
Mortgage		1,571		1,582		-		1,583		58
Indirect Auto		-		6		-		4		-
Indirect Marine		201		505		-		281		-
HELOCs		559		699		-		573		8
Other Consumer		89		208		-		107		-
Total impaired loans without a specific allowance	$	101,316	$	109,728	$	-	$	109,502	$	4,589
Loans with a specific allowance
Commercial:
Commercial Construction	$	570	$	570	$	51	$	506	$	13
Commercial Real Estate - Owner Occupied		5,951		5,999		355		5,946		280
Commercial Real Estate - Non-Owner Occupied		10,575		10,572		2,017		10,823		474
Raw Land and Lots		1,343		1,373		98		1,472		59
Single Family Investment Real Estate		4,125		4,144		562		4,293		159
Commercial and Industrial		2,938		3,009		582		3,125		138
Other Commercial		359		378		32		442		29
Consumer:
Mortgage		3,323		3,375		481		3,381		60
Consumer Construction		375		375		34		373		19
Indirect Marine		192		192		5		199		15
HELOCs		434		434		4		436		17
Other Consumer		679		706		310		686		19
Total impaired loans with a specific allowance	$	30,864	$	31,127	$	4,531	$	31,682	$	1,282
Total impaired loans	$	132,180	$	140,855	$	4,531	$	141,184	$	5,871

The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. TDRs totaled $24.1 million and $26.8 million as of March 31, 2015 and December 31, 2014, respectively. All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology and are included in the preceding impaired loan tables. For the quarter ended March 31, 2015, the recorded investment in restructured loans prior to modifications was not materially impacted by the modification.

- 15 -

The following table provides a summary, by class, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed on nonaccrual status, which are considered to be nonperforming, as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31, 2015						December 31, 2014
	No. of Loans		Recorded Investment		Outstanding Commitment		No. of Loans		Recorded Investment		Outstanding Commitment
Performing
Commercial:
Commercial Construction		1	$	296	$	-		1	$	707	$	-
Commercial Real Estate - Owner Occupied		3		674		-		3		682		-
Commercial Real Estate - Non-Owner Occupied		3		3,352		-		3		3,362		-
Raw Land and Lots		6		14,377		-		9		14,777		-
Single Family Investment Real Estate		5		934		-		6		1,046		-
Commercial and Industrial		10		683		-		9		722		-
Other Commercial		1		172		-		1		191		-
Consumer:
Mortgage		6		753		-		7		1,244		-
Other Consumer		3		95		-		3		98		-
Total performing		38	$	21,336	$	-		42	$	22,829	$	-
Nonperforming
Commercial:
Commercial Construction		1	$	253	$	-		1	$	253	$	-
Commercial Real Estate - Owner Occupied		2		149		-		2		153		-
Commercial Real Estate - Non-Owner Occupied		1		539		-		1		539		-
Raw Land and Lots		1		116		-		2		1,053		-
Single Family Investment Real Estate		1		211		-		1		433		-
Commercial and Industrial		5		603		-		5		616		-
Other Commercial		1		69		-		1		74		-
Consumer:
Mortgage		2		763		-		2		770		-
Other Consumer		1		37		-		1		57		-
Total nonperforming		15	$	2,740	$	-		16	$	3,948	$	-
Total performing and nonperforming		53	$	24,076	$	-		58	$	26,777	$	-

The Company considers a default of a restructured loan to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. During the three months ended March 31, 2015 and 2014, the Company did not identify any restructured loans that went into default that had been restructured in the twelve-month period prior to default.

- 16 -

The following table shows, by class and modification type, TDRs that occurred during the three months ended March 31, 2015 and 2014 (dollars in thousands):

	Three months ended				Three months ended
	March 31, 2015				March 31, 2014
	No. of Loans		Recorded Investment at Period End		No. of Loans		Recorded Investment at Period End
Term modification, at a market rate
Commercial:
Commercial Real Estate - Owner Occupied		-	$	-		1	$	2,732
Single Family Investment Real Estate		-		-		1		113
Commercial and Industrial		1		19		-		-
Other Commercial		-		-		2		296
Total loan term extended at a market rate		1	$	19		4	$	3,141
Total		1	$	19		4	$	3,141

The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by portfolio segment for the three months ended and as of March 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Commercial			Consumer			Total
Allowance for loan losses:
Balance, beginning of the year	$	22,352		$	10,032		$	32,384
Recoveries credited to allowance		292			380			672
Loans charged off		(2,962	)		(867	)		(3,829	)
Provision charged to operations		2,106			(356	)		1,750
Balance, end of period	$	21,788		$	9,189		$	30,977
Ending Balance, ALL:
Loans individually evaluated for impairment	$	1,458		$	246		$	1,704
Loans collectively evaluated for impairment		20,330			8,943			29,273
Loans acquired with deteriorated credit quality		-			-			-
Total	$	21,788		$	9,189		$	30,977
Ending Balance, Loans:
Loans individually evaluated for impairment	$	107,956		$	6,149		$	114,105
Loans collectively evaluated for impairment		3,707,786			1,474,518			5,182,304
Loans acquired with deteriorated credit quality		81,155			10,191			91,346
Total	$	3,896,897		$	1,490,858		$	5,387,755

- 17 -

The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by portfolio segment for the three months ended and as of March 31, 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Commercial			Consumer			Total
Allowance for loan losses:
Balance, beginning of the year	$	19,908		$	10,227		$	30,135
Recoveries credited to allowance		1,408			251			1,659
Loans charged off		(307	)		(580	)		(887	)
Provision charged to operations		(843	)		843			-
Balance, end of period	$	20,166		$	10,741		$	30,907
Ending Balance, ALL:
Loans individually evaluated for impairment	$	1,266		$	468		$	1,734
Loans collectively evaluated for impairment		18,900			10,273			29,173
Loans acquired with deteriorated credit quality		-			-			-
Total	$	20,166		$	10,741		$	30,907
Ending Balance, Loans:
Loans individually evaluated for impairment	$	109,756		$	6,972		$	116,728
Loans collectively evaluated for impairment		3,533,488			1,485,551			5,019,039
Loans acquired with deteriorated credit quality		120,291			18,140			138,431
Total	$	3,763,535		$	1,510,663		$	5,274,198

The Company uses the past due status and delinquency trends as the primary credit quality indicator for the consumer loan portfolio segment while a risk rating system is utilized for commercial loans. Commercial loans are graded on a scale of 1 through 9. A general description of the characteristics of the risk grades follows:

· Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents;

· Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety;

· Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment;

· Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan;

· Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay;

· Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position;

· Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected;

· Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; and

· Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted.

- 18 -

The following table shows the recorded investment in all loans, excluding PCI loans, in the commercial portfolios by class with their related risk rating current as of March 31, 2015 (dollars in thousands):

		1-3		4		5		6		7		8		Total
Commercial Construction	$	32,325	$	295,831	$	12,537	$	10,730	$	3,923	$	-	$	355,346
Commercial Real Estate - Owner Occupied		185,029		644,950		12,608		6,289		18,342		-		867,218
Commercial Real Estate - Non-Owner Occupied		368,352		1,059,097		21,457		31,916		18,193		-		1,499,015
Raw Land and Lots		9,550		126,001		11,870		4,577		39,706		-		191,704
Single Family Investment Real Estate		62,254		316,576		8,693		6,311		6,851		-		400,685
Commercial and Industrial		165,924		236,174		10,375		4,133		6,535		11		423,152
Other Commercial		31,446		40,764		3,379		1,748		1,285		-		78,622
Total	$	854,880	$	2,719,393	$	80,919	$	65,704	$	94,835	$	11	$	3,815,742

The following table shows the recorded investment in all loans, excluding PCI loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2014 (dollars in thousands):

		1-3		4		5		6		7		8		Total
Commercial Construction	$	22,512	$	289,064	$	11,932	$	10,906	$	3,084	$	-	$	337,498
Commercial Real Estate - Owner Occupied		185,789		620,587		15,003		7,688		15,209		-		844,276
Commercial Real Estate - Non-Owner Occupied		356,263		1,041,515		22,358		28,388		31,766		-		1,480,290
Raw Land and Lots		11,162		128,281		16,803		4,783		42,769		-		203,798
Single Family Investment Real Estate		59,638		311,900		9,750		6,680		7,647		-		395,615
Commercial and Industrial		138,973		230,084		9,392		4,383		7,089		-		389,921
Other Commercial		31,571		40,913		3,818		844		1,704		-		78,850
Total	$	805,908	$	2,662,344	$	89,056	$	63,672	$	109,268	$	-	$	3,730,248

The following table shows the recorded investment in only PCI loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of March 31, 2015 (dollars in thousands):

		4		5		6		7		8		Total
Commercial Construction	$	-	$	-	$	2,491	$	146	$	453	$	3,090
Commercial Real Estate - Owner Occupied		2,758		3,647		9,042		15,557		-		31,004
Commercial Real Estate - Non-Owner Occupied		3,855		3,597		9,171		2,952		-		19,575
Raw Land and Lots		1,580		585		2,595		1,295		-		6,055
Single Family Investment Real Estate		3,783		2,083		4,661		5,772		-		16,299
Commercial and Industrial		492		13		436		2,371		26		3,338
Other Commercial		69		-		530		1,195		-		1,794
Total	$	12,537	$	9,925	$	28,926	$	29,288	$	479	$	81,155

The following table shows the recorded investment in only PCI loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2014 (dollars in thousands):

		4		5		6		7		8		Total
Commercial Construction	$	-	$	-	$	3,130	$	194	$	458	$	3,782
Commercial Real Estate - Owner Occupied		1,525		3,546		10,880		15,216		-		31,167
Commercial Real Estate - Non-Owner Occupied		2,837		934		18,736		6,362		-		28,869
Raw Land and Lots		1,564		189		3,148		2,526		-		7,427
Single Family Investment Real Estate		2,807		1,253		6,462		6,357		-		16,879
Commercial and Industrial		437		-		913		2,477		28		3,855
Other Commercial		-		-		510		1,746		-		2,256
Total	$	9,170	$	5,922	$	43,779	$	34,878	$	486	$	94,235

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Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase. The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows.

The following shows changes in the accretable yield for loans accounted for under ASC 310-30 for the periods presented (dollars in thousands):

	For the Three Months ended March 31,
	2015			2014
Balance at beginning of period	$	28,956		$	2,980
Additions		-			34,653
Accretion		(1,501	)		(1,846	)
Reclass of nonaccretable difference due to improvement in expected cash flows		2,695			-
Other non-credit changes, net (1)		(5,619	)		(1,365	)
Balance at end of period	$	24,531		$	34,422

⁽¹⁾ This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter.

The carrying value of the Company’s PCI loan portfolio, accounted for under ASC 310-30, totaled $91.3 million at March 31, 2015 and $105.8 million at December 31, 2014. The outstanding balance of the Company’s PCI loan portfolio totaled $111.6 million at March 31, 2015 and $126.3 million at December 31, 2014. The carrying value of the Company’s acquired performing loan portfolio, accounted for under ASC 310-20, totaled $1.7 billion at March 31, 2015 and $1.8 billion at December 31, 2014; the remaining discount on these loans totaled $23.8 million and $24.3 million, respectively.

5. INTANGIBLE ASSETS

The Company’s intangible assets consist of core deposits and goodwill arising from previous acquisitions. The Company has determined that core deposit intangibles have a finite life and amortizes them over their estimated useful life. Core deposit intangible assets are being amortized over the period of expected benefit, which ranges from 4 to 14 years, using an accelerated method. On January 1, 2014, the Company completed the acquisition of StellarOne and acquired intangible assets of $29.6 million and recorded $234.1 million of goodwill.

In accordance with ASC 350, Intangibles-Goodwill and Other, the Company reviews the carrying value of indefinite lived intangible assets at least annually or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing in the second quarter of 2014 and determined that there was no impairment to its goodwill or intangible assets. Subsequently, the Company determined that an additional evaluation was necessary at year-end due to potential indicators based on the net losses recorded at the mortgage company during 2014. Based on this additional testing, the Company confirmed that no impairment charges to date for goodwill or intangible assets were necessary.

Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands):

	Gross Carrying Value		Accumulated Amortization		Net Carrying  Value
March 31, 2015
Amortizable core deposit intangibles	$	76,185	$	46,652	$	29,533
December 31, 2014
Amortizable core deposit intangibles	$	76,185	$	44,430	$	31,755
March 31, 2014
Amortizable core deposit intangibles	$	76,185	$	37,250	$	38,935

- 20 -

Amortization expense of core deposit intangibles for the three months ended March 31, 2015 and 2014, and for the year ended December 31, 2014 totaled $2.2 million, $2.6 million, and $9.8 million, respectively. As of March 31, 2015, the estimated remaining amortization expense of core deposit intangibles is as follows (dollars in thousands):

For the remaining nine months of 2015	$	6,221
For the year ending December 31, 2016		6,932
For the year ending December 31, 2017		5,590
For the year ending December 31, 2018		4,144
For the year ending December 31, 2019		3,093
For the year ending December 31, 2020		2,028
Thereafter		1,525
Total estimated amortization expense	$	29,533

6. BORROWINGS

Short-term Borrowings

The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Total short-term borrowings consist primarily of advances from the FHLB, federal funds purchased (which are secured overnight borrowings from other financial institutions), and other lines of credit. Also included in total short-term borrowings are securities sold under agreements to repurchase, which are secured transactions with customers and generally mature the day following the date sold. The market value of securities pledged as collateral for customer repurchase agreements totaled $53.7 million and $51.8 million as of March 31, 2015 and December 31, 2014, respectively. Total short-term borrowings consist of the following as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31,			December 31,
	2015			2014
Securities sold under agreements to repurchase	$	39,434		$	44,393
Other short-term borrowings		335,000			343,000
Total short-term borrowings	$	374,434		$	387,393
Maximum month-end outstanding balance	$	374,434		$	387,393
Average outstanding balance during the period		379,604			237,896
Average interest rate during the period		0.27	%		0.24	%
Average interest rate at end of period		0.26	%		0.31	%
Other short-term borrowings:
Federal funds purchased	$	-		$	-
FHLB		325,000			335,000
Other lines of credit		10,000			8,000

The Bank maintains federal funds lines with several correspondent banks; the remaining available balance was $175.0 million and $150.0 million at March 31, 2015 and December 31, 2014, respectively. The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with these lines and is considered to be in compliance with these covenants. Additionally, the Company had a collateral dependent line of credit with the FHLB of up to $1.5 billion and $1.4 billion at March 31, 2015 and December 31, 2014, respectively.

- 21 -

Long-term Borrowings

In connection with two bank acquisitions prior to 2006, the Company issued trust preferred capital notes to fund the cash portion of those acquisitions, collectively totaling $58.5 million. In connection with the acquisition of StellarOne, the Company acquired trust preferred capital notes totaling $32.0 million with a remaining fair value discount of $7.2 million at March 31, 2015. The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes.

	Principal		Investment(1)		Spread to 3-Month LIBOR			Rate			Maturity
Trust Preferred Capital Note - Statutory Trust I	$	22,500,000	$	696,000		2.75	%		3.02	%	6/17/2034
Trust Preferred Capital Note - Statutory Trust II		36,000,000		1,114,000		1.40	%		1.67	%	6/15/2036
VFG Limited Liability Trust I Indenture		20,000,000		619,000		2.73	%		3.00	%	3/18/2034
FNB Statutory Trust II Indenture		12,000,000		372,000		3.10	%		3.37	%	6/26/2033
Total	$	90,500,000	$	2,801,000

(1) reported as “Other Assets” within the Consolidated Balance Sheets

As part of a prior acquisition, the Company assumed subordinated debt with terms of LIBOR plus 1.45% and a maturity date of April 2016. At March 31, 2015, the carrying value of the subordinated debt was $17.5 million, with a remaining fair value discount of $530,000.

On August 23, 2012, the Company modified its fixed rate FHLB advances to floating rate advances, which resulted in reducing the Company’s FHLB borrowing costs. In connection with this modification, the Company incurred a prepayment penalty of $19.6 million on the original advances, which is included as a component of long-term borrowings in the Company’s Consolidated Balance Sheets. In accordance with ASC 470-50, Modifications and Extinguishments, the Company will amortize this prepayment penalty over the term of the modified advances using the effective rate method. The amortization expense is included as a component of interest expense on long-term borrowings in the Company’s Consolidated Statements of Income. Amortization expense for the three months ended March 31, 2015 and 2014 was $447,000 and $436,000, respectively.

In connection with the StellarOne acquisition, the Company assumed $70.0 million in long-term borrowings with the FHLB that had a remaining fair value premium of $1.9 million at March 31, 2015.

As of March 31, 2015, the Company had advances from the FHLB consisting of the following (dollars in thousands):

Long-term Type	Spread to 3-Month LIBOR			Interest Rate			Maturity Date	Advance Amount
Adjustable Rate Credit		0.44	%		0.71	%	8/23/2022	$	55,000
Adjustable Rate Credit		0.45	%		0.72	%	11/23/2022		65,000
Adjustable Rate Credit		0.45	%		0.72	%	11/23/2022		10,000
Adjustable Rate Credit		0.45	%		0.72	%	11/23/2022		10,000
Fixed Rate		-			3.62	%	11/28/2017		10,000
Fixed Rate		-			3.44	%	7/28/2015		10,000
Fixed Rate		-			3.75	%	7/30/2018		5,000
Fixed Rate		-			3.97	%	7/30/2018		5,000
Fixed Rate Hybrid		-			2.11	%	10/5/2016		25,000
Fixed Rate Hybrid		-			0.91	%	7/25/2016		15,000
								$	210,000

- 22 -

As of December 31, 2014, the Company had advances from the FHLB consisting of the following (dollars in thousands):

Long-term Type	Spread to 3-Month LIBOR			Interest Rate			Maturity Date	Advance Amount
Adjustable Rate Credit		0.44	%		0.70	%	8/23/2022	$	55,000
Adjustable Rate Credit		0.45	%		0.71	%	11/23/2022		65,000
Adjustable Rate Credit		0.45	%		0.71	%	11/23/2022		10,000
Adjustable Rate Credit		0.45	%		0.71	%	11/23/2022		10,000
Fixed Rate		-			3.62	%	11/28/2017		10,000
Fixed Rate		-			3.44	%	7/28/2015		10,000
Fixed Rate		-			3.75	%	7/30/2018		5,000
Fixed Rate		-			3.97	%	7/30/2018		5,000
Fixed Rate Hybrid		-			2.11	%	10/5/2016		25,000
Fixed Rate Hybrid		-			0.91	%	7/25/2016		15,000
								$	210,000

The carrying value of the loans and securities pledged as collateral for FHLB advances totaled $1.7 billion and $1.6 billion as of March 31, 2015 and December 31, 2014, respectively.

As of March 31, 2015, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands):

	Trust Preferred Capital Notes		Subordinated Debt		FHLB Advances		Fair Value Premium (Discount)			Prepayment Penalty			Total Long-term Borrowings
Remaining nine months in 2015	$	-	$	-	$	10,000	$	100		$	(1,384	)	$	8,716
2016		-		17,500		40,000		271			(1,882	)		55,889
2017		-		-		10,000		170			(1,922	)		8,248
2018		-		-		10,000		(143	)		(1,970	)		7,887
2019		-		-		-		(286	)		(2,018	)		(2,304	)
2020		-		-		-		(301	)		(2,074	)		(2,375	)
Thereafter		93,301		-		140,000		(5,622	)		(3,826	)		223,853
Total Long-term borrowings	$	93,301	$	17,500	$	210,000	$	(5,811	)	$	(15,076	)	$	299,914

7. COMMITMENTS AND CONTINGENCIES

Litigation Matters

In the ordinary course of its operations, the Company and its subsidiaries are parties to various legal proceedings. Based on the information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in such proceedings, in the aggregate, will not have a material adverse effect on the business, financial condition, or results of operations of the Company.

Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the Company’s Consolidated Balance Sheets. The contractual amounts of these instruments reflect the extent of the Company’s involvement in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk. The Company considers credit losses related to off-balance sheet commitments by undergoing a similar process in evaluating losses for loans that are carried on balance sheet. The Company considers historical loss rates, current economic conditions, risk ratings, and past due status amongst other factors in the consideration of whether credit losses are inherent in the Company’s off-balance sheet commitments to extend credit. The Company does not expect that credit losses arising from off-balance sheet commitments to have a material adverse impact on the Company’s consolidated financial statements.

- 23 -

Commitments to extend credit are agreements to lend to customers as long as there are no violations of any conditions established in the contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Letters of credit are conditional commitments issued by the Company to guarantee the performance of customers to third parties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

UMG, a wholly owned subsidiary of the Bank, uses rate lock commitments and best efforts contracts during the origination process and for loans held for sale. These best efforts contracts are designed to mitigate UMG’s exposure to fluctuations in interest rates in connection with rate lock commitments and loans held for sale. The Company held approximately $2.7 million and $2.6 million in loans available for sale in which the related rate lock commitment had expired as of March 31, 2015 and December 31, 2014, respectively. At March 31, 2015 and December 31, 2014, the reserves associated with these loans held for sale were $102,000 and $104,000, respectively, and are reflected on the balance sheet of the mortgage segment.

The following table presents the balances of commitments and contingencies (dollars in thousands):

	March 31,		December 31,
	2015		2014
Commitments with off-balance sheet risk:
Commitments to extend credit (1)	$	1,674,177	$	1,601,287
Standby letters of credit		113,362		117,988
Mortgage loan rate lock commitments		80,159		49,552
Total commitments with off-balance sheet risk	$	1,867,698	$	1,768,827
Commitments with balance sheet risk:
Loans held for sale	$	46,048	$	42,519
Total other commitments	$	1,913,746	$	1,811,346

(1) Includes unfunded overdraft protection.

The Company must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the periods ended March 31, 2015 and December 31, 2014, the aggregate amount of daily average required reserves was approximately $47.1 million and $48.7 million, respectively.

The Company has approximately $18.4 million in deposits in other financial institutions, of which $5.7 million and $3.5 million serve as collateral for the trust swaps and loan swaps, respectively, as discussed in Note 8 “Derivatives”. The Company had approximately $8.3 million in deposits in other financial institutions that were uninsured at March 31, 2015. On an annual basis, the Company’s management evaluates the loss risk of its uninsured deposits in financial counter-parties.

For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify the interest rate characteristics of various balance sheet accounts. See Note 8 “Derivatives” for additional information.

In the ordinary course of business, the Company records an indemnification reserve relating to mortgage loans previously sold based on historical statistics and loss rates; as of March 31, 2015 and December 31, 2014, the Company’s indemnification reserve for such mortgage loans was $687,000 and $662,000, respectively.

- 24 -

8. DERIVATIVES

The Company is exposed to economic risks arising from its business operations and uses derivatives primarily to manage risk associated with changing interest rates, and to assist customers with their risk management objectives. The Company designates its derivatives either as hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge) or as a free standing derivative such as interest rate lock commitments that do not qualify for hedge accounting. The Company uses interest rate derivatives to manage its exposure to interest rate movements and add stability to interest income and expense. The Company also enters into back-to-back loan swaps to assist customers in managing changing interest rates.

Cash Flow Hedges

As part of its cash flow hedging strategy, the Company uses interest rate swap agreements to limit the variability of expected future cash flows (primarily associated with the Company’s variable rate borrowings) by exchanging a notional amount, equal to the principal amount of the borrowings, for fixed-rate interest based on benchmarked interest rates. As of March 31, 2015, the Company had 11 interest rate swaps designated as cash flow hedges with an aggregate notional amount of $263.0 million.

The Company has entered into three interest rate swap agreements (the “trust swaps”) to mitigate the variable interest rate risk related to the trust preferred capital notes further described in Note 6 “Borrowings.” The Company receives interest of LIBOR from a counterparty and pays a weighted average fixed rate of 2.77% to the same counterparty calculated on a notional amount of $68.0 million. The original terms of the trust swaps range from three to six years.

The Company has entered into four interest rate swap agreements (the “prime loan swaps”) to mitigate the variable interest rate risks of certain prime commercial loans. The Company receives a fixed interest rate ranging from 4.71% to 5.20% from the counterparty and pays interest based on the Wall Street Journal prime index, with a spread of up to 0.49%, to the same counterparty calculated on a notional amount of $55.0 million. One of the four prime loan swaps contains a floor rate of 4.00%. The original terms of the four prime loan swaps is six years with a fixed rate that started September 17, 2013.

The Company has entered into four interest rate swap agreements (“FHLB advance swaps”) to mitigate variable interest rate risk on certain designated variable rate FHLB borrowings. The Company receives an interest rate based on the three month LIBOR from the counterparty and pays an interest rate ranging from 3.16% to 3.46% to the same counterparty calculated on a notional amount of $140.0 million. The FHLB advance swaps are deferred starting swaps with terms of six years and five years and effective dates of February 23, 2017 and February 23, 2018, respectively.

All swaps were entered into with counterparties that met the Company’s credit standards and the agreements contain collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in the contract is not significant. As of March 31, 2015, the Company had $5.7 million of cash pledged as collateral for the trust swaps and securities with a market value of $4.7 million pledged as collateral for the prime loan swaps and FHLB advance swaps.

Amounts receivable or payable are recognized as accrued under the terms of the agreements. In accordance with ASC 815, Derivatives and Hedging, the Company has designated the trust swaps, prime loan swaps, and FHLB advance swaps as cash flow hedges, with the effective portions of the derivatives’ unrealized gains or losses recorded as a component of other comprehensive income. The ineffective portions of the unrealized gains or losses, if any, would be recorded in interest income and interest expense in the Company’s Consolidated Statements of Income. The Company has assessed the effectiveness of each hedging relationship by comparing the changes in cash flows of the hedging instrument. Based on the Company’s assessment, its cash flow hedges are highly effective. At March 31, 2015, the fair value of the Company’s cash flow hedges was a net unrealized loss of $9.7 million, the amount the Company would have expected to pay if the contracts were terminated.

- 25 -

Shown below is a summary of the derivatives designated as cash flow hedges at March 31, 2015 and December 31, 2014 (dollars in thousands):

			Notional						Receive			Pay			Life
	Positions		Amount		Asset		Liability		Rate			Rate			(Years)
As of March 31, 2015
Pay fixed - receive floating interest rate swaps		7	$	208,000	$	-	$	10,854		0.27	%(1)		2.77	%(1)		1.88	(1)
Receive fixed - pay floating interest rate swaps		4	$	55,000	$	1,185	$	-		4.93	%		3.55	%		4.47

(1) Due to their deferred nature, the rates and the life exclude the four FHLB advance swaps.

			Notional						Receive			Pay			Life
	Positions		Amount		Asset		Liability		Rate			Rate			(Years)
As of December 31, 2014
Pay fixed - receive floating interest rate swaps		7	$	208,000	$	-	$	8,433		0.26	%(1)		2.77	%(1)		2.12	(1)
Receive fixed - pay floating interest rate swaps		4	$	55,000	$	580	$	-		4.93	%		3.55	%		4.72

(1) Due to their deferred nature, the rates and the life exclude the four FHLB advance swaps.

Fair Value Hedge

During the normal course of business, the Company enters into interest rate swaps to convert certain long-term fixed-rate loans to floating rates to hedge the Company’s exposure to interest rate risk. The Company applies hedge accounting in accordance with ASC 815, and the fair value hedge and the underlying hedged item, attributable to the risk being hedged, are recorded at fair value with unrealized gains and losses being recorded in the Company’s Consolidated Statements of Income. The ineffective portions of the unrealized gains or losses, if any, would be recorded in interest income and interest expense in the Company’s Consolidated Statements of Income. The Company uses statistical regression analysis to assess hedge effectiveness, both at inception of the hedging relationship and on an ongoing basis. The regression analysis involves regressing the periodic change in fair value of the hedging instrument against the periodic changes in fair value of the asset being hedged due to changes in the hedged risk.

On December 30, 2014, the Company entered into a swap, constituting a fair value hedge, whereby the Company pays a fixed interest rate of 3.42% to the counterparty and receives interest of one month LIBOR plus 1.93% from the same counterparty calculated on a notional amount of $38.3 million with a term of 15 years. At March 31, 2015, the fair value of the Company’s fair value hedge was an unrealized loss of $1.3 million, the amount the Company would have expected to pay if the contract was terminated; the liability is reported in “Other Liabilities” in the Company’s Consolidated Balance Sheets. At March 31, 2015, the notional amount of the hedged item was $38.3 million with a fair value of $1.2 million. The fair value hedge had no material impact on the Company’s Consolidated Statements of Income.

Loan Swaps

During the normal course of business, the Company enters into interest rate swap loan relationships (“loan swaps”) with borrowers to meet their financing needs. Upon entering into the loan swaps, the Company enters into offsetting positions with counterparties in order to minimize interest rate risk. These back-to-back loan swaps qualify as financial derivatives with fair values as reported in “Other Assets” and “Other Liabilities” in the Company’s Consolidated Balance Sheets. As of March 31, 2015, the Company had cash and securities with a market value of $6.7 million pledged as collateral for the loan swaps.

- 26 -

Shown below is a summary regarding loan swap derivative activities at March 31, 2015 and December 31, 2014 (dollars in thousands):

			Notional						Receive			Pay			Life
	Positions		Amount		Asset		Liability		Rate			Rate			(Years)
As of March 31, 2015
Receive fixed - pay floating interest rate swaps		33	$	134,496	$	4,684	$	-		4.28	%		2.47	%		7.14
Pay fixed - receive floating interest rate swaps		33	$	134,496	$	-	$	4,684		2.47	%		4.28	%		7.14

			Notional						Receive			Pay			Life
	Positions		Amount		Asset		Liability		Rate			Rate			(Years)
As of December 31, 2014
Receive fixed - pay floating interest rate swaps		30	$	122,793	$	2,681	$	-		4.29	%		2.50	%		7.14
Pay fixed - receive floating interest rate swaps		30	$	122,793	$	-	$	2,681		2.50	%		4.29	%		7.14

Interest Rate Lock Commitments

During the normal course of business, the Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (“rate lock commitments”).  Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives.  The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days.  The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan.  The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity.

The market values of rate lock commitments and best efforts forward delivery commitments is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets.  The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close.  The fair value of the rate lock commitments as of March 31, 2015 was $1.3 million and is reported as a component of “Other Assets” in the Company’s Consolidated Balance Sheets; the fair value of the Company’s best efforts forward delivery commitments was $367,000 and is recorded as a component of “Other Liabilities” in the Company’s Consolidated Balance Sheets. Any impact to income is recorded in current period earnings as a component of “Gain on sale of mortgage loans, net of commissions” in the Company’s Consolidated Statements of Income. At March 31, 2015, the aggregate notional amount of these derivatives was $80.2 million.

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9. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The change in accumulated other comprehensive income (loss) for the three months ended March 31, 2015 is summarized as follows, net of tax (dollars in thousands):

	Unrealized Gains (Losses) on Securities			Change in Fair Value of Cash Flow Hedge			Total
Balance - December 31, 2014	$	17,439		$	(5,184	)	$	12,255
Other comprehensive income (loss)		3,783			(1,490	)		2,293
Amounts reclassified from accumulated other comprehensive income		(125	)		272			147
Net current period other comprehensive income (loss)		3,658			(1,218	)		2,440
Balance - March 31, 2015	$	21,097		$	(6,402	)	$	14,695

The change in accumulated other comprehensive income (loss) for the three months ended March 31, 2014 is summarized as follows, net of tax (dollars in thousands):

	Unrealized Gains (Losses) on Securities			Change in Fair Value of Cash Flow Hedge			Total
Balance - December 31, 2013	$	1,192		$	(3,382	)	$	(2,190	)
Other comprehensive income (loss)		6,313			575			6,888
Amounts reclassified from accumulated other comprehensive income		(19	)		47			28
Net current period other comprehensive income (loss)		6,294			622			6,916
Balance - March 31, 2014	$	7,486		$	(2,760	)	$	4,726

Reclassifications of unrealized gains (losses) on available for sale securities are reported in the Company’s Consolidated Statements of Income as “Gains on securities transactions, net” with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported gains of $193,000 and $29,000 for the three months ended March, 31, 2015 and 2014, respectively, related to gains and losses on the sale of securities. The tax effect of these transactions during the three months ended March 31, 2015 and 2014 was $68,000 and $10,000, respectively, which amounts were included as a component of income tax expense.

Reclassifications of the change in fair value of cash flow hedges are reported in interest income and interest expense in the Company’s Consolidated Statements of Income with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported net interest expense of $418,000 and $72,000 for the three months ended March 31, 2015 and 2014, respectively. The tax effect of these transactions during the three months ended March 31, 2015 and 2014 was $146,000 and $25,000, respectively, which amounts were included as a component of income tax expense.

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10. FAIR VALUE MEASUREMENTS

The Company follows ASC 820, Fair Value Measurements and Disclosures, to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants.

ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows:

Level 1	Valuation is based on quoted prices in active markets for identical assets and liabilities.
Level 2	Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets.
Level 3	Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort.

The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements.

Derivative instruments

As discussed in Note 8 “Derivatives”, the Company records derivative instruments at fair value on a recurring basis. The Company utilizes derivative instruments as part of the management of interest rate risk to modify the re-pricing characteristics of certain portions of the Company’s interest-bearing assets and liabilities. The Company has contracted with a third party vendor to provide valuations for derivatives using standard valuation techniques and therefore classifies such valuations as Level 2. Third party valuations are validated by the Company using Bloomberg Valuation Service’s derivative pricing functions. The Company has considered counterparty credit risk in the valuation of its derivative assets and has considered its own credit risk in the valuation of its derivative liabilities.

During the ordinary course of business, the Company enters into interest rate lock commitments related to the origination of mortgage loans held for sale as well as best effort forward delivery commitments to mitigate interest rate risk; these instruments are recorded at estimated fair value based on the value of the underlying loan, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a pull-through rate which considers the likelihood that the loan in a lock position will ultimately close. The pull-through rate is derived from the Company’s internal data and is adjusted using significant management judgment. The pull-through rate is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. As such, interest rate lock commitments are classified as Level 3. An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitment derivative will result in positive fair value adjustments while a decrease in the pull-through rate will result in a negative fair value adjustment. The Company’s weighted average pull-through rate was approximately 80% as of March 31, 2015 and approximately 90% as of December 31, 2014. As of March 31, 2015, the interest rate lock commitments are recorded as a component of “Other Assets” and the best effort forward delivery commitments are recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets.

Securities available for sale

Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity, then the security would fall to the lowest level of the hierarchy (Level 3).

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The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third party portfolio accounting service vendor for valuation of its securities portfolio. The vendor’s primary source for security valuation is Interactive Data Corporation (“IDC”), which evaluates securities based on market data. IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs.

The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves.

The Company uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations. Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source. No material differences were identified during the validation as of March 31, 2015 and December 31, 2014.

The carrying value of restricted Federal Reserve Bank and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the following table.

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The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 (dollars in thousands):

	Fair Value Measurements at March 31, 2015 using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Securities available for sale:
U.S. government and agency securities	$	-	$	8,595	$	-	$	8,595
Obligations of states and political subdivisions		-		452,438		-		452,438
Corporate bonds		-		78,141		-		78,141
Mortgage-backed securities		-		540,463		-		540,463
Other securities		-		10,027		-		10,027
Derivatives:
Interest rate swap		-		4,684		-		4,684
Cash flow hedges		-		1,185		-		1,185
Interest rate lock commitments		-		-		1,271		1,271
LIABILITIES
Derivatives:
Interest rate swap	$	-	$	4,684	$	-	$	4,684
Cash flow hedges		-		10,854		-		10,854
Best effort forward delivery commitments		-		-		367		367

	Fair Value Measurements at December 31, 2014 using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Securities available for sale:
U.S. government and agency securities	$	-	$	8,454	$	-	$	8,454
Obligations of states and political subdivisions		-		445,647		-		445,647
Corporate bonds		-		78,680		-		78,680
Mortgage-backed securities		-		559,329		-		559,329
Other securities		-		10,004		-		10,004
Derivatives:
Interest rate swap		-		2,681		-		2,681
Cash flow hedges		-		580		-		580
Interest rate lock commitments		-		-		513		513
LIABILITIES
Derivatives:
Interest rate swap	$	-	$	2,681	$	-	$	2,681
Cash flow hedges		-		8,433		-		8,433

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Certain assets are measured at fair value on a nonrecurring basis in accordance with U.S. GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets.

The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements.

Loans held for sale

Loans held for sale are carried at the lower of cost or market value. These loans currently consist of residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). As such, the Company records any fair value adjustments on a nonrecurring basis. Nonrecurring fair value adjustments of $17,000 and $44,000 were recorded on loans held for sale during the three months ended March 31, 2015 and 2014, respectively. Gains and losses on the sale of loans are recorded within the mortgage segment and are reported on a separate line item in the Company’s Consolidated Statements of Income.

Impaired loans

Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral if repayment is solely from the underlying value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data. When evaluating the fair value, management may discount the appraisal further if, based on their understanding of the market conditions, it is determined the collateral is further impaired below the appraised value (Level 3). The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Collateral dependent impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Company’s Consolidated Statements of Income.

Other real estate owned

OREO is evaluated for impairment at least quarterly by the Bank’s Special Asset Loan Committee and any necessary write downs to fair values are recorded as impairment and included as a component of noninterest expense. Fair values of OREO are carried at fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as Level 3 valuation.

Total valuation expenses related to OREO properties for the three months ended March 31, 2015 and 2014 totaled $590,000 and $256,000, respectively.

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The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at March 31, 2015 and December 31, 2014 (dollars in thousands):

	Fair Value Measurements at March 31, 2015 using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Loans held for sale	$	-	$	46,048	$	-	$	46,048
Impaired loans		-		-		12,621		12,621
Other real estate owned		-		-		25,434		25,434

	Fair Value Measurements at December 31, 2014 using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Loans held for sale	$	-	$	42,519	$	-	$	42,519
Impaired loans		-		-		15,797		15,797
Other real estate owned		-		-		28,118		28,118

The following table displays quantitative information about Level 3 Fair Value Measurements at March 31, 2015 (dollars in thousands):

	Fair Value Measurements at March 31, 2015
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Real Estate - Owner Occupied	$	4,524	Market comparables	Discount applied to market comparables(1)		37	%
Commercial Real Estate - Non-Owner Occupied		3,860	Market comparables	Discount applied to market comparables(1)		0	%
Single Family Investment Real Estate		1,220	Market comparables	Discount applied to market comparables(1)		5	%
Commercial and Industrial		2,011	Market comparables	Discount applied to market comparables(1)		11	%
Other (2)		1,006	Market comparables	Discount applied to market comparables(1)		5	%
Total Impaired Loans		12,621
Other real estate owned		25,434	Market comparables	Discount applied to market comparables(1)		31	%
Total	$	38,055

⁽¹⁾ A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.

⁽²⁾ The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.

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The following table displays quantitative information about Level 3 Fair Value Measurements at December 31, 2014 (dollars in thousands):

	Fair Value Measurements at December 31, 2014
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Real Estate - Owner Occupied	$	3,304	Market comparables	Discount applied to market comparables(1)		34	%
Commercial Real Estate - Non-Owner Occupied		7,828	Market comparables	Discount applied to market comparables(1)		1	%
Raw Land and Lots		431	Market comparables	Discount applied to market comparables(1)		16	%
Single Family Investment Real Estate		1,366	Market comparables	Discount applied to market comparables(1)		14	%
Commercial and Industrial		339	Market comparables	Discount applied to market comparables(1)		45	%
Other (2)		2,529	Market comparables	Discount applied to market comparables(1)		6	%
Total Impaired Loans		15,797
Other real estate owned		28,118	Market comparables	Discount applied to market comparables(1)		32	%
Total	$	43,915

⁽¹⁾ A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.

⁽²⁾ The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.

ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

Cash and cash equivalents

For those short-term instruments, the carrying amount is a reasonable estimate of fair value.

Loans

The fair value of performing loans is estimated by discounting expected future cash flows using a yield curve that is constructed by adding a loan spread to a market yield curve. Loan spreads are based on spreads currently observed in the market for loans of similar type and structure. Fair value for impaired loans and their respective level within the fair value hierarchy, are described in the previous disclosure related to fair value measurements of assets that are measured on a nonrecurring basis.

Bank owned life insurance

The carrying value of bank owned life insurance approximates fair value. The Company records these policies at their cash surrender value, which is estimated using information provided by insurance carriers.

Deposits

The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities.

Borrowings

The carrying value of the Company’s repurchase agreements is a reasonable estimate of fair value. Other borrowings are discounted using the current yield curve for the same type of borrowing. For borrowings with embedded optionality, a third party source is used to value the instrument. The Company validates all third party valuations for borrowings with optionality using Bloomberg’s derivative pricing functions.

Accrued interest

The carrying amounts of accrued interest approximate fair value.

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Commitments to extend credit and standby letters of credit

The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At March 31, 2015 and December 31, 2014, the fair value of loan commitments and standby letters of credit was immaterial.

The carrying values and estimated fair values of the Company’s financial instruments at March 31, 2015 and December 31, 2014 are as follows (dollars in thousands):

			Fair Value Measurements at March 31, 2015 using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Balance
ASSETS
Cash and cash equivalents	$	137,362	$	137,362	$	-	$	-	$	137,362
Securities available for sale		1,089,664		-		1,089,664		-		1,089,664
Restricted stock		53,146		-		53,146		-		53,146
Loans held for sale		46,048		-		46,048		-		46,048
Net loans		5,356,778		-		-		5,381,792		5,381,792
Derivatives:
Interest rate lock commitments		1,271		-		-		1,271		1,271
Interest rate swap		4,684		-		4,684		-		4,684
Cash flow hedges		1,185		-		1,185		-		1,185
Accrued interest receivable		22,313		-		22,313		-		22,313
Bank owned life insurance		140,143		-		140,143		-		140,143
LIABILITIES
Deposits	$	5,670,228	$	-	$	5,669,754	$	-	$	5,669,754
Borrowings		674,348		-		653,782		-		653,782
Accrued interest payable		1,818		-		1,818		-		1,818
Derivatives:
Best effort forward delivery commitments		367		-		-		367		367
Interest rate swap		4,684		-		4,684		-		4,684
Cash flow hedges		10,854		-		10,854		-		10,854

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			Fair Value Measurements at December 31, 2014 using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Balance
ASSETS
Cash and cash equivalents	$	133,260	$	133,260	$	-	$	-	$	133,260
Securities available for sale		1,102,114		-		1,102,114		-		1,102,114
Restricted stock		54,854		-		54,854		-		54,854
Loans held for sale		42,519		-		42,519		-		42,519
Net loans		5,313,612		-		-		5,340,759		5,340,759
Derivatives:
Interest rate lock commitments		513		-		-		513		513
Interest rate swap		2,681		-		2,681		-		2,681
Cash flow hedges		580		-		580		-		580
Accrued interest receivable		21,775		-		21,775		-		21,775
Bank owned life insurance		139,005		-		139,005		-		139,005
LIABILITIES
Deposits	$	5,638,770	$	-	$	5,637,929	$	-	$	5,637,929
Borrowings		686,935		-		666,224		-		666,224
Accrued interest payable		1,899		-		1,899		-		1,899
Derivatives:
Interest rate swap		2,681		-		2,681		-		2,681
Cash flow hedges		8,433		-		8,433		-		8,433

The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk.

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11. STOCK-BASED COMPENSATION

The Company’s 2011 Stock Incentive Plan (the “2011 Plan”) provides for the granting of stock-based awards to key employees of the Company and its subsidiaries in the form of: (i) incentive stock options intended to comply with the requirements of Section 422 of the Internal Revenue Code of 1986 (“incentive stock options”); (ii) non-qualified stock options; (iii) restricted stock, and (iv) other stock-based awards. The Company issues new shares to satisfy stock-based awards, and the option price cannot be less than the fair market value of the stock on the grant date. A stock option’s maximum term is ten years from the date of grant. No stock options have been granted since February 2012, and restricted stock and other stock-based awards typically vest in varying annual installments over a three to five year vesting schedule. The 2011 Plan was approved by the Company’s Board of Directors with an effective date of January 1, 2011, subject to shareholder approval that was received at the annual meeting of shareholders held on April 26, 2011.

Based on the recommendation of the Compensation Committee of the Company’s Board of Directors, on January 29, 2015, the Company’s Board of Directors adopted, subject to shareholder approval, the Union Bankshares Corporation Stock and Incentive Plan (the “Amended and Restated SIP”), which amends and restates the 2011 Plan. The Amended and Restated SIP was approved by the Company’s shareholders and became effective on April 21, 2015. The Amended and Restated SIP amends the 2011 Plan to, among other things, increase the maximum number of shares of the Company’s common stock issuable under the plan from 1,000,000 to 2,500,000 and add non-employee directors of the Company and certain subsidiaries, as well as regional advisory boards, as potential participants in the plan.

The following table summarizes the shares granted and available in the 2011 Plan as of March 31, 2015; there were no shares granted or available under the Amended and Restated SIP as of March 31, 2015 because the Amended and Restated SIP was not effective as of such date.

	2011 Plan
Beginning Authorization		1,000,000
Granted		(600,641	)
Remaining available for grant		399,359

For the three months ended March 31, 2015 and 2014, the Company recognized stock-based compensation expense (included in salaries and benefits expense) of approximately $390,000 and $374,000 ($281,000 and $270,000 net of tax), respectively. Stock-based compensation expense represents approximately $0.01 per common share for both the three months ended March 31, 2015 and 2014.

Stock Options

The following table summarizes the stock option activity for the three months ended March 31, 2015:

	Number of Stock Options			Weighted Average Exercise Price
Options outstanding, December 31, 2014		389,269		$	16.69
Exercised		(7,686	)		17.72
Expired		(13,188	)		23.45
Options outstanding, March 31, 2015		368,395			16.42
Options exercisable, March 31, 2015		263,890			17.47

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option valuation model. The model uses variables which include the historical dividend yield of the Company’s common stock, the average contractual life and vesting schedule of the option, the historic volatility of the Company’s common stock price, and the risk-free interest rate at the time the option was granted. Other than options that were assumed and converted upon completion of the StellarOne merger, the Company has not granted incentive compensation in the form of options since February 2012.

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The following table summarizes information concerning stock options issued to the Company’s employees that are vested or are expected to vest and stock options exercisable as of March 31, 2015:

	Stock Options Vested or Expected to Vest		Exercisable
Stock options (number of shares)		368,361		263,890
Weighted average remaining contractual life in years		5.08		4.62
Weighted average exercise price on shares above water	$	14.36	$	14.63
Aggregate intrinsic value	$	2,471,164	$	1,594,675

Restricted Stock

The 2011 Plan permits the granting of restricted stock awards but is limited to one-third of the aggregate number of total awards granted. This equity component of compensation is divided between restricted (time-based) stock grants and performance-based stock grants. Generally, the restricted stock vests 50% on each of the third and fourth anniversaries from the date of the grant. The performance-based stock is subject to vesting based on achieving certain performance metrics; the grant of performance-based stock is subject to approval by the Company’s Compensation Committee at its sole discretion. The value of the restricted stock awards was calculated by multiplying the fair market value of the Company’s common stock on grant date by the number of shares awarded. Employees have the right to vote the shares and to receive cash or stock dividends (restricted stock), if any, except for the nonvested stock under the performance-based component (performance stock). Nonvested shares of restricted stock are included in the computation of basic earnings per share. The following table summarizes the restricted stock activity for the quarter ended March 31, 2015:

	Number of Shares of Restricted Stock			Weighted Average Grant-Date Fair Value
Balance, December 31, 2014		287,120		$	20.07
Granted		81,414			22.01
Net settle for taxes		(9,869	)		21.58
Vested		(30,401	)		16.03
Forfeited		(4,419	)		19.68
Balance, March 31, 2015		323,845			21.20

The estimated unamortized compensation expense, net of estimated forfeitures, related to nonvested stock and stock options issued and outstanding as of March 31, 2015 that will be recognized in future periods is as follows (dollars in thousands):

	Stock Options		Restricted Stock		Total
For the remaining nine months of 2015	$	155	$	1,275	$	1,430
For year ending December 31, 2016		130		1,586		1,716
For year ending December 31, 2017		15		899		914
For year ending December 31, 2018		-		495		495
For year ending December 31, 2019		-		70		70
Total	$	300	$	4,325	$	4,625

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12. EARNINGS PER SHARE

Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares outstanding attributable to stock awards.

There were approximately 159,460 and 212,306 shares underlying anti-dilutive awards for the three months ended March 31, 2015 and 2014, respectively. Anti-dilutive awards were excluded from the calculation of diluted EPS.

The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three months ended March 31, 2015 and 2014 (in thousands except per share data):

	Net Income Available to Common Shareholders (Numerator)		Weighted Average Common Shares (Denominator)		Per Share Amount
For the three months ended March 31, 2015
Net income, basic	$	15,701		45,106	$	0.35
Add: potentially dilutive common shares - stock awards		-		82		-
Diluted	$	15,701		45,188	$	0.35
For the three months ended March 31, 2014
Net income, basic	$	7,708		46,977	$	0.16
Add: potentially dilutive common shares - stock awards		-		103		-
Diluted	$	7,708		47,080	$	0.16

13. SEGMENT REPORTING DISCLOSURES

The Company has two reportable segments: a traditional full service community bank segment and a mortgage loan origination business segment. The community bank segment includes one subsidiary bank, the Bank, which provides loan, deposit, investment, and trust services to retail and commercial customers throughout its 131 retail locations in Virginia. The mortgage segment includes UMG, which provides a variety of mortgage loan products principally in Virginia, North Carolina, South Carolina, Maryland, and the Washington D.C. metro area. These loans are originated and sold primarily in the secondary market through purchase commitments from investors, which serves to mitigate the Company’s exposure to interest rate risk.

Profit and loss is measured by net income after taxes including realized gains and losses on the Company’s investment portfolio. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Inter-segment transactions are recorded at cost and eliminated as part of the consolidation process.

Both of the Company’s reportable segments are service-based. The mortgage business is a fee-based business while the bank is driven principally by net interest income. The bank segment provides a distribution and referral network through its customers for the mortgage loan origination business. The mortgage segment offers a more limited referral network for the bank segment.

The community bank segment provides the mortgage segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest at the three month LIBOR rate plus 0.15% with no floor, effective January 1, 2015. During the quarter ended March 31, 2014, the interest rate on the warehouse line of credit was the three month LIBOR rate plus 1.5% with a floor of 2.0%. These transactions are eliminated in the consolidation process. A management fee for operations and administrative support services is charged to all subsidiaries and eliminated in the consolidated totals.

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Information about reportable segments and reconciliation of such information to the consolidated financial statements for the three months ended March 31, 2015 and 2014 is as follows (dollars in thousands):

UNION BANKSHARES CORPORATION AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

(Dollars in thousands)

	Community Bank		Mortgage			Eliminations			Consolidated
Three Months Ended March 31, 2015
Net interest income	$	61,723	$	246		$	-		$	61,969
Provision for loan losses		1,750		-			-			1,750
Net interest income after provision for loan losses		59,973		246			-			60,219
Noninterest income		12,848		2,376			(170	)		15,054
Noninterest expenses		50,972		3,038			(170	)		53,840
Income (loss) before income taxes		21,849		(416	)		-			21,433
Income tax expense (benefit)		5,881		(149	)		-			5,732
Net income (loss)	$	15,968	$	(267	)	$	-		$	15,701
Total assets	$	7,382,266	$	55,380		$	(49,087	)	$	7,388,559
Three Months Ended March 31, 2014
Net interest income	$	63,526	$	232		$	-		$	63,758
Provision for loan losses		-		-			-			-
Net interest income after provision for loan losses		63,526		232			-			63,758
Noninterest income		11,659		2,300			(171	)		13,788
Noninterest expenses		62,746		4,710			(171	)		67,285
Income (loss) before income taxes		12,439		(2,178	)		-			10,261
Income tax expense (benefit)		3,351		(798	)		-			2,553
Net income (loss)	$	9,088	$	(1,380	)	$	-		$	7,708
Total assets	$	7,282,311	$	57,705		$	(45,511	)	$	7,294,505

14. SUBSEQUENT EVENTS

Subsequent to quarter-end the Company performed a review of the investment portfolio and the related classification of securities. In connection with this review, management determined that the Company has the ability and the intent to hold certain municipal securities to their contractual maturity. On April 30, 2015, the Company reclassified certain municipal securities with an amortized cost of $193.6 million and a fair value of $202.8 million from available for sale to held-to-maturity. The reclassification will be accounted for in accordance with the guidance established in ASC 320, Investments – Debt and Equity Securities.

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Review Report of Independent Registered Public Accounting Firm

The Shareholders and Board of Directors of Union Bankshares Corporation

We have reviewed the consolidated balance sheet of Union Bankshares Corporation (the “Company”) as of March 31, 2015, and the related consolidated statements of income, comprehensive income and cash flows for the three-month period ended March 31, 2015. These financial statements are the responsibility of the Company's management. The consolidated financial statements of the Company as of March 31, 2014, and for the three-month period then ended, were reviewed by other auditors whose report dated May 8, 2014 stated that based on their review they were not aware of any material modifications that should be made to those statements for them to be in conformity with U.S. generally accepted accounting principles. The consolidated balance sheet of the Company as of December 31, 2014, and the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for the year then ended (not presented herein) were audited by other auditors whose report dated February 27, 2015 expressed an unqualified opinion on those statements.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the 2015 consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

Richmond, Virginia

May 7, 2015

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ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Management’s discussion and analysis is presented to aid the reader in understanding and evaluating the financial condition and results of operations of Union Bankshares Corporation and its subsidiaries (collectively, the “Company”). This discussion and analysis should be read with the consolidated financial statements, the notes to the financial statements, and the other financial data included in this report, as well as the Company’s Annual Report on Form 10-K and management’s discussion and analysis for the year ended December 31, 2014. Highlighted in the discussion are material changes from prior reporting periods and any identifiable trends affecting the Company. Results of operations for the three months ended March 31, 2015 and 2014 are not necessarily indicative of results that may be attained for any other period. Amounts are rounded for presentation purposes while some of the percentages presented are computed based on unrounded amounts.

FORWARD-LOOKING STATEMENTS

Certain statements in this report may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact.  Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events.  Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements.  Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of and changes in: general economic and bank industry conditions, the interest rate environment, legislative and regulatory requirements, competitive pressures, new products and delivery systems, inflation, stock and bond markets, accounting standards or interpretations of existing standards, mergers and acquisitions, technology, and consumer spending and savings habits. More information is available on the Company’s website, http://investors.bankatunion.com and on the Securities and Exchange Commission’s website, www.sec.gov. The information on the Company’s website is not a part of this Form 10-Q. The Company does not intend or assume any obligation to update or revise any forward-looking statements that may be made from time to time by or on behalf of the Company.

CRITICAL ACCOUNTING POLICIES

General

The accounting and reporting policies of the Company are in accordance with U.S. GAAP and conform to general practices within the banking industry. The Company’s financial position and results of operations are affected by management’s application of accounting policies, including estimates, assumptions, and judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues, expenses, and related disclosures. Different assumptions in the application of these policies could result in material changes in the Company’s consolidated financial position and/or results of operations.

The more critical accounting and reporting policies include the Company’s accounting for the allowance for loan losses, mergers and acquisitions, and goodwill and intangible assets. The Company’s accounting policies are fundamental to understanding the Company’s consolidated financial position and consolidated results of operations. Accordingly, the Company’s significant accounting policies are discussed in detail in Note 1 “Summary of Significant Accounting Policies” in the “Notes to the Consolidated Financial Statements” contained in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

The following is a summary of the Company’s critical accounting policies that are highly dependent on estimates, assumptions, and judgments.

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Allowance for Loan Losses

The provision for loan losses charged to operations is an amount sufficient to bring the allowance for loan losses to an estimated balance that management considers adequate to absorb incurred losses in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely. Recoveries of amounts previously charged-off are credited to the allowance. Management’s determination of the adequacy of the allowance is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to make adjustments to the allowance based on their judgments about information available to them at the time of their examination.

The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. The credit reviews consist of reviews by its Loan Review group and reviews performed by an independent third party. Upon origination, each commercial loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk. This risk rating scale is the Company’s primary credit quality indicator. Consumer loans are generally not risk rated; the primary credit quality indicator for this portfolio segment is delinquency status. The Company has various committees that review and ensure that the allowance for loan losses methodology is in accordance with U.S. GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio.

The Company’s ALL consists of specific and general components.

Specific Reserve Component - The specific reserve component relates to impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Upon being identified as impaired, for loans not considered to be collateral dependent, an allowance is established when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. Nonaccrual loans under $100,000 and other impaired loans under $500,000 are aggregated based on similar risk characteristics. The level of credit impairment within the pool(s) is determined based on historical loss factors for loans with similar risk characteristics, taking into consideration environmental factors specifically related to the underlying pool. The impairment of collateral dependent loans is measured based on the fair value of the underlying collateral (based on independent appraisals), less selling costs, compared to the carrying value of the loan. If the Company determines that the value of an impaired collateral dependent loan is less than the recorded investment in the loan, it either recognizes an impairment reserve as a specific component to be provided for in the allowance for loan losses or charges off the deficiency if it is determined that such amount represents a confirmed loss. Typically, a loss is confirmed when the Company is moving towards foreclosure (or final disposition) of the underlying collateral, the collateral deficiency has not improved for two consecutive quarters, or when there is a payment default of 180 days, whichever occurs first.

The Company obtains independent appraisals from a pre-approved list of independent, third party appraisal firms located in the market in which the collateral is located. The Company’s approved appraiser list is continuously maintained to ensure the list only includes such appraisers that have the experience, reputation, character, and knowledge of the respective real estate market. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. The Company’s internal Real Estate Valuation Group, which reports to the Risk and Compliance Group, performs either a technical or administrative review of all appraisals obtained. A technical review will ensure the overall quality of the appraisal, while an administrative review ensures that all of the required components of an appraisal are present. Generally, independent appraisals are updated every 12 to 24 months or more frequently as necessary. The Company’s impairment analysis documents the date of the appraisal used in the analysis, whether the officer preparing the report deems it current, and, if not, allows for internal valuation adjustments with justification. Adjustments to appraisals generally include discounts for continued market deterioration subsequent to the appraisal date. Any adjustments from the appraised value to carrying value are documented in the impairment analysis, which is reviewed and approved by senior credit administration officers and the Special Assets Loan Committee. External appraisals are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through broker price opinions or other valuations sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. Impairment analyses are updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period.

General Reserve Component – The general reserve component covers non-impaired loans and is derived from an estimate of credit losses adjusted for various environmental factors applicable to both commercial and consumer loan segments. The estimate of credit losses is a function of the product of net charge-off historical loss experience to the loan balance of the loan portfolio averaged during the preceding twelve quarters, as management has determined this to adequately reflect the losses inherent in the loan portfolio. The environmental factors consist of national, local, and portfolio characteristics and are applied to both the commercial and consumer segments. The following table shows the types of environmental factors management considers:

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ENVIRONMENTAL FACTORS
Portfolio	National	Local
Experience and ability of lending team	Interest rates	Level of economic activity
Depth of lending team	Inflation	Unemployment
Pace of loan growth	Unemployment	Competition
Franchise expansion	Gross domestic product	Military/government impact
Execution of loan risk rating process	General market risk and other concerns
Degree of oversight / underwriting standards	Legislative and regulatory environment
Value of real estate serving as collateral
Delinquency levels in portfolio
Charge-off levels in portfolio
Credit concentrations / nature and volume of the portfolio

Impaired Loans

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. A loan that is classified substandard or worse is considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The impaired loan policy is the same for each of the seven classes within the commercial portfolio segment.

For the consumer loan portfolio segment, large groups of smaller balance homogeneous loans are collectively evaluated for impairment. This evaluation subjects each of the Company’s homogenous pools to a historical loss factor derived from net charge-offs experienced over the preceding twelve quarters. The Company applies payments received on impaired loans to principal and interest based on the contractual terms until they are placed on nonaccrual status. All payments received are then applied to reduce the principal balance and recognition of interest income is terminated.

Business Combinations and Acquired Loans

The Company’s merger and acquisition strategy focuses on high-growth areas with strong market demographics and targets organizations that have a comparable corporate culture, strong performance, and good asset quality, among other factors.

Business combinations are accounted for under ASC 805, Business Combinations, using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company will continue to rely on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquirer and the closing date and apply applicable recognition principles and conditions. If they are necessary to implement its plan to exit an activity of an acquiree, costs that the Company expects, but is not obligated, to incur in the future are not liabilities at the acquisition date, nor are costs to terminate the employment of or relocate an acquiree’s employees. The Company does not recognize these costs as part of applying the acquisition method. Instead, the Company recognizes these costs as expenses in its post-combination financial statements in accordance with other applicable U.S. GAAP.

Acquisition-related costs are incremental costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of acquisition-related costs to the Company include systems conversions, integration planning consultants, and advertising costs. The Company will account for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities will be recognized in accordance with other applicable U.S. GAAP. These acquisition-related costs are included within the Consolidated Statements of Income classified within the noninterest expense caption.

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Loans acquired in a business combination are recorded at fair value on the date of the acquisition. Loans acquired with deteriorated credit quality are accounted for in accordance with ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, and are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Loans acquired in business combinations with evidence of credit deterioration are not considered to be impaired unless they deteriorate further subsequent to the acquisition. Certain acquired loans, including performing loans and revolving lines of credit (consumer and commercial), are accounted for in accordance with ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, where the discount is accreted through earnings based on estimated cash flows over the estimated life of the loan.

Goodwill and Intangible Assets

The Company follows ASC 350, Intangibles - Goodwill and Other, which prescribes the accounting for goodwill and intangible assets subsequent to initial recognition. Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected April 30th as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives, which range from 4 to 14 years, to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Company’s Consolidated Balance Sheets.

The Company performed its annual impairment testing in the second quarter of 2014 and determined that there was no impairment to its goodwill or intangible assets. Subsequently, the Company determined that an additional evaluation was necessary at year-end due to potential indicators based on the net losses recorded at the mortgage company during 2014. Based on this additional testing, the Company confirmed that no impairment charges to date for goodwill or intangible assets were necessary. If the Company’s mortgage segment does not show improvement in subsequent periods, the Company may be required to perform a step two impairment analysis.

Long-lived assets, including purchased intangible assets subject to amortization, such as the core deposit intangible asset, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. Management concluded that no circumstances indicating an impairment of these assets existed as of the balance sheet date.

ABOUT UNION BANKSHARES CORPORATION

Headquartered in Richmond, Union Bankshares Corporation is the largest community banking organization headquartered in Virginia and operates in all major banking markets of the Commonwealth. Union Bankshares Corporation is the holding company for Union Bank & Trust, which provides banking, trust, and wealth management services and has a statewide presence of 131 bank branches and 200 ATMs. Non-bank affiliates of the holding company include: Union Investment Services, Inc., which provides full brokerage services; Union Mortgage Group, Inc., which provides a full line of mortgage products; and Union Insurance Group, LLC, which offers various lines of insurance products.

The Company announced that, effective February 16, 2015, it had changed its subsidiary bank’s name from “Union First Market Bank” to “Union Bank & Trust”.

Shares of the Company’s common stock are traded on the NASDAQ Global Select Market under the symbol UBSH. Additional information is available on the Company’s website at http://investors.bankatunion.com. The information contained on the Company’s website is not a part of or incorporated into this report.

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RESULTS OF OPERATIONS

Executive Overview

For the quarter ended March 31, 2015, the Company reported net income of $15.7 million and earnings per share of $0.35. These results represent an increase of $8.0 million from $7.7 million, or 103.7%, in earnings from the first quarter of 2014. Excluding after-tax acquisition-related expenses of $9.0 million incurred during the first quarter of 2014, operating earnings⁽¹⁾ declined $1.0 million, primarily a result of lower net interest income and an increase in provision for loan losses, partially offset by higher noninterest income and lower personnel costs. Operating earnings per share were $0.35 and $0.36 for the quarters ended March 31, 2015 and 2014, respectively.

· Net income for the first quarter of 2015 for the community bank segment was $16.0 million, or $0.36 per share, compared to operating earnings of $18.1 million, or $0.39 per share, in the first quarter of 2014.

· The mortgage segment reported a net loss of $267,000, or $0.01 per share, for the quarter ended March 31, 2015, an improvement of $1.1 million from a loss of $1.4 million, or $0.03 per share, for the first quarter of 2014. The improvement was largely a result of cost control initiatives in personnel costs, loan production costs, and other operating expenses.

· Operating Return on Average Assets⁽¹⁾ (“ROA”) was 0.86% for the quarter ended March 31, 2015 compared to operating ROA⁽¹⁾ of 0.94% for the first quarter of 2014. The operating ROA⁽¹⁾ of the community bank segment was 0.88% for the first quarter of 2015.

· Operating Return on Average Tangible Common Equity⁽¹⁾ (“ROTCE”) was 9.67% for the quarter ended March 31, 2015 compared to operating ROTCE⁽¹⁾ of 10.27% for the quarter ended March 31, 2014. The operating ROTCE⁽¹⁾ of the community bank segment was 9.88% for the first quarter of 2015.

· Operating efficiency ratio⁽¹⁾ of 68.0% stayed comparatively flat for the first quarter of 2015 when compared to the operating efficiency ratio of 68.1% for the first quarter of 2014. The operating efficiency ratio for the community bank segment was 66.4% for the first quarter of 2015.

· Loans grew $113.6 million, or 2.2%, from March 31, 2014, while average loan balances increased $80.8 million, or 1.5%, from March 31, 2014. Loans grew $41.8 million, or 3.1% (annualized), from December 31, 2014, while average loan balances increased $140.5 million, or 10.8% (annualized), from December 31, 2014.

⁽¹⁾ These supplementary measures are provided because the Company believes they may be valuable to investors. For a reconciliation of the non-GAAP measures operating earnings, EPS, ROA, ROTCE, and efficiency ratio, see “NON-GAAP MEASURES” included in this Item 2.

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Net Interest Income

	For the Three Months Ended
	March 31,
	2015			2014			Change
	(Dollars in thousands)
Average interest-earning assets	$	6,576,415		$	6,432,326		$	144,089
Interest income (FTE)	$	69,761		$	70,154		$	(393	)
Yield on interest-earning assets		4.30	%		4.42	%		(12	)bps
Average interest-bearing liabilities	$	5,096,040		$	5,236,101		$	(140,061	)
Interest expense	$	5,631		$	4,450		$	1,181
Cost of interest-bearing liabilities		0.45	%		0.34	%		11	bps
Cost of funds		0.35	%		0.28	%		7	bps
Net Interest Income (FTE)	$	64,130		$	65,704		$	(1,574	)
Net Interest Margin (FTE)		3.95	%		4.14	%		(19	)bps
Core Net Interest Margin (FTE) (1)		3.84	%		3.99	%		(15	)bps

(1) Core net interest margin (FTE) excludes the impact of acquisition accounting accretion and amortization adjustments in net interest income.

For the first quarter of 2015, tax-equivalent net interest income was $64.1 million, a decrease of $1.6 million from the first quarter of 2014, primarily driven by the impact of declines in net interest margin and lower net accretion related to acquisition accounting. The first quarter 2015 tax-equivalent net interest margin decreased by 19 bps to 3.95% compared to 4.14% in the comparable quarter in the prior year. Core tax-equivalent net interest margin (which excludes the 11 bps impact of acquisition accounting accretion in the first quarter of 2015 and 15 bps in the first quarter of 2014) decreased by 15 bps from 3.99% in the first quarter of 2014 to 3.84% in the first quarter of 2015. The decrease in core tax-equivalent net interest margin was driven by the 20 basis point decline in interest-earning asset yields outpacing the 5 basis point reduction in cost of funds. The decline in interest-earning asset yields was primarily driven by lower loan yields, as new and renewed loans were originated and re-priced at lower rates, and by lower investment securities yields, as cash flows from securities were reinvested at lower yields. Net accretion related to acquisition accounting decreased $599,000 from the first quarter of 2014 to $1.9 million in the first quarter of 2015.

The Company continues to believe that net interest margin will decline modestly over the next several quarters as decreases in interest-earning asset yields are projected to outpace declines in interest-bearing liabilities rates.

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The following table shows interest income on earning assets and related average yields as well as interest expense on interest-bearing liabilities and related average rates paid for the periods indicated (dollars in thousands):

AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)

	For the Three Months Ended March 31,
	2015								2014
	Average Balance			Interest Income / Expense		Yield / Rate (1)			Average Balance			Interest Income / Expense		Yield / Rate (1)
	(Dollars in thousands)
Assets:
Securities:
Taxable	$	730,404		$	3,807		2.11	%	$	683,620		$	3,648		2.16	%
Tax-exempt		413,228			5,114		5.02	%		392,859			5,044		5.21	%
Total securities		1,143,632			8,921		3.16	%		1,076,479			8,692		3.27	%
Loans, net (2) (3)		5,360,676			60,527		4.58	%		5,279,924			61,033		4.69	%
Loans held for sale		38,469			296		3.12	%		49,767			417		3.40	%
Federal funds sold		792			-		0.20	%		268			-		0.17	%
Money market investments		1			-		0.00	%		1			-		0.00	%
Interest-bearing deposits in other banks		32,845			17		0.20	%		25,887			12		0.19	%
Total earning assets		6,576,415		$	69,761		4.30	%		6,432,326		$	70,154		4.42	%
Allowance for loan losses		(32,992	)							(30,925	)
Total non-earning assets		819,260								848,049
Total assets	$	7,362,683							$	7,249,450
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
Transaction and money market accounts	$	2,591,991		$	1,160		0.18	%	$	2,674,485		$	1,138		0.17	%
Regular savings		555,356			268		0.20	%		548,877			247		0.18	%
Time deposits (4)		1,269,352			1,893		0.60	%		1,463,076			871		0.24	%
Total interest-bearing deposits		4,416,699			3,321		0.30	%		4,686,438			2,256		0.20	%
Other borrowings (5)		679,341			2,310		1.38	%		549,663			2,194		1.62	%
Total interest-bearing liabilities		5,096,040		$	5,631		0.45	%		5,236,101		$	4,450		0.34	%
Noninterest-bearing liabilities:
Demand deposits		1,223,218								959,523
Other liabilities		60,877								56,494
Total liabilities		6,380,135								6,252,118
Stockholders' equity		982,548								997,332
Total liabilities and stockholders' equity	$	7,362,683							$	7,249,450
Net interest income				$	64,130							$	65,704
Interest rate spread (6)							3.85	%							4.08	%
Cost of funds							0.35	%							0.28	%
Net interest margin (7)							3.95	%							4.14	%

(1) Rates and yields are annualized and calculated from actual, not rounded, amounts in thousands, which appear above.

(2) Nonaccrual loans are included in average loans outstanding.

(3) Interest income on loans includes $639,000 and ($546,000) for the three months ended March 31, 2015 and 2014, respectively, in accretion (amortization) of the fair market value adjustments related to acquisitions.

(4) Interest expense on certificates of deposits includes $1.1 million and $2.9 million for the three months ended March 31, 2015 and 2014, respectively, in accretion of the fair market value adjustments related to acquisitions.

(5) Interest expense on borrowings includes $137,000 and $75,000 for the three months ended March 31, 2015 and 2014, respectively, in accretion of the fair market value adjustments related to acquisitions.

(6) Income and yields are reported on a taxable equivalent basis using the statutory federal corporate tax rate of 35%.

(7) Core net interest margin excludes purchase accounting adjustments and was 3.84% and 3.99% for the three months ended March 31, 2015 and 2014, respectively.

- 48 -

The Volume Rate Analysis table below presents changes in interest income and interest expense and distinguishes between the changes related to increases or decreases in average outstanding balances of interest-earning assets and interest-bearing liabilities (volume), and the changes related to increases or decreases in average interest rates on such assets and liabilities (rate). Changes attributable to both volume and rate have been allocated proportionally. Results, on a taxable equivalent basis, are as follows (dollars in thousands):

	Three Months Ended
	March 31, 2015 vs. March 31, 2014
	Increase (Decrease) Due to Change in:
	Volume			Rate			Total
Earning Assets:
Securities:
Taxable	$	244		$	(85	)	$	159
Tax-exempt		257			(187	)		70
Total securities		501			(272	)		229
Loans, net		929			(1,435	)		(506	)
Loans held for sale		(88	)		(33	)		(121	)
Interest-bearing deposits in other banks		4			1			5
Total earning assets	$	1,346		$	(1,739	)	$	(393	)
Interest-Bearing Liabilities:
Interest-bearing deposits:
Transaction and money market accounts	$	(31	)	$	53		$	22
Regular savings		1			20			21
Time Deposits		(126	)		1,148			1,022
Total interest-bearing deposits		(156	)		1,221			1,065
Other borrowings		470			(354	)		116
Total interest-bearing liabilities		314			867			1,181
Change in net interest income	$	1,032		$	(2,606	)	$	(1,574	)

The Company’s fully taxable equivalent net interest margin includes the impact of acquisition accounting fair value adjustments. The 2015 and remaining estimated discount/premium and net accretion impact are reflected in the following table (dollars in thousands):

	Accretion				Accretion (Amortization)
	Loan		Certificates of Deposit		Borrowings			Total
For the quarter ended March 31, 2015	$	639	$	1,075	$	137		$	1,851
For the remaining nine months of 2015		1,954		768		100			2,822
For the years ending:
2016		2,547		-		271			2,818
2017		2,743		-		170			2,913
2018		2,520		-		(143	)		2,377
2019		1,970		-		(286	)		1,684
2020		1,728		-		(301	)		1,427
Thereafter		10,313		-		(5,622	)		4,691

- 49 -

Noninterest Income

	For the Three Months Ended
	March 31,						Change
	2015			2014			$			%
	(Dollars in thousands)
Noninterest income:
Service charges on deposit accounts	$	4,214		$	4,298		$	(84	)		-2.0	%
Other service charges, commissions and fees		3,584			3,344			240			7.2	%
Fiduciary and asset management fees		2,219			2,303			(84	)		-3.6	%
Gains on sales of mortgage loans, net of commissions		2,379			2,297			82			3.6	%
Gains on securities transactions, net		193			29			164			NM
Bank owned life insurance income		1,135			1,089			46			4.2	%
Other operating income		1,330			428			902			210.7	%
Total noninterest income	$	15,054		$	13,788		$	1,266			9.2	%
Mortgage segment operations	$	(2,376	)	$	(2,300	)	$	(76	)		3.3	%
Intercompany eliminations		170			171			(1	)		-0.6	%
Community Bank segment	$	12,848		$	11,659		$	1,189			10.2	%

NM - Not Meaningful

For the quarter ended March 31, 2015, noninterest income increased $1.3 million, or 9.2%, to $15.1 million from $13.8 million in the first quarter of 2014. The majority of this increase is related to higher gains on sales of securities of $164,000 and other operating income of $902,000, primarily driven by gains from the dissolution of a limited partnership in the current quarter. Customer related noninterest income (service charges and fiduciary and asset management fees) remained relatively flat compared to the first quarter of 2014. Gains on sales of mortgage loans, net of commissions, increased slightly from the first quarter of 2014, increasing $82,000, or 3.6 %, due to improved gain on sale margins on mortgage loan originations, despite a decline in volume. Mortgage loan origination volume decreased $10.4 million from $149.1 million in the first quarter of 2014 to $138.7 million in the first quarter of 2015.

Noninterest expense

	For the Three Months Ended
	March 31,						Change
	2015			2014			$			%
	(Dollars in thousands)
Noninterest expense:
Salaries and benefits	$	27,492		$	29,214		$	(1,722	)		-5.9	%
Occupancy expenses		5,133			5,180			(47	)		-0.9	%
Furniture and equipment expenses		2,813			2,868			(55	)		-1.9	%
OREO and credit-related expenses (1)		1,186			1,451			(265	)		-18.3	%
Acquisition-related expenses		-			13,168			(13,168	)		-100.0	%
Other operating expenses		17,216			15,404			1,812			11.8	%
Total noninterest expense	$	53,840		$	67,285		$	(13,445	)		-20.0	%
Mortgage segment operations	$	(3,038	)	$	(4,710	)	$	1,672			-35.5	%
Intercompany eliminations		170			171			(1	)		-0.6	%
Community Bank segment	$	50,972		$	62,746		$	(11,774	)		-18.8	%

NM - Not Meaningful

(1) OREO related costs include foreclosure related expenses, gains/losses on the sale of OREO, valuation reserves, and asset resolution related legal expenses.

For the quarter ended March 31, 2015, noninterest expense decreased $13.5 million to $53.8 million from $67.3 million when compared to the first quarter of 2014 largely driven by acquisition expenses incurred in the first quarter of 2014. Excluding acquisition-related costs of $13.2 million in 2014, noninterest expense decreased $277,000, or less than 1%. Salaries and benefits declined $1.7 million, or 5.9%, due to cost control initiatives at the mortgage company as well as cost savings from the StellarOne acquisition being recognized in the current year. Other operating expenses increased $1.8 million, primarily related to higher professional fees of $293,000, increased marketing expenses of $623,000 related to the current advertising campaign as well as the Bank’s name change, and higher fraud-related expenses of $363,000. The Company’s operating efficiency ratio, which excludes acquisition costs, was largely unchanged at 68.0% compared to 68.1% for the first quarter of 2014.

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SEGMENT INFORMATION

Community Bank Segment

For the three months ended March 31, 2015, the community bank segment reported net income of $16.0 million, an increase of $6.9 million, or 75.7%, from the prior year’s first quarter. Excluding after-tax acquisition-related costs of $9.0 million in the first quarter of 2014, net income decreased $2.1 million, or 11.9%. Net interest income decreased $1.8 million from the same period last year, largely a result of a lower net interest margin and lower net accretion related to acquisition accounting. The decline in interest-earning asset yields was primarily driven by lower loan yields, as new and renewed loans were originated and re-priced at lower rates and by lower investment securities yields, as cash flows from securities were reinvested at lower yields. The provision for loan losses for the current quarter increased $1.8 million from the same period a year ago, a result of a net loan recovery in the first quarter of 2014 and higher loan balances in 2015.

Noninterest income increased $1.2 million from $11.7 million in the first quarter of 2014 to $12.9 million in the first quarter of 2015. The majority of this increase is related to higher gains on sales of securities of $164,000 and other operating income of $962,000, primarily driven by gains from the dissolution of a limited partnership in the current quarter. Noninterest expense decreased $11.8 million from $62.8 million in the first quarter of 2014 to $51.0 million in the current quarter. Excluding prior year first quarter acquisition-related costs of $13.2 million, noninterest expense increased $1.4 million, or 2.8%, compared to the first quarter of 2014. Salaries and benefits declined $463,000, or 2.0%, primarily due to cost savings from the StellarOne acquisition being recognized in the current year. Other operating expenses increased primarily related to higher professional fees of $335,000, increased marketing expenses of $639,000 related to the current advertising campaign as well as the Bank’s name change, and higher fraud-related expenses of $364,000. The community banking segment’s operating efficiency ratio was 66.4% compared to 64.3% for the first quarter of 2014.

Mortgage Segment

The mortgage segment reported a net loss of $267,000 for the first quarter of 2015, an improvement of $1.1 million from a loss of $1.4 million in the first quarter of 2014. The improvement was due to a reduction in noninterest expense of $1.7 million, largely a result of cost control initiatives in personnel costs, loan production costs, and other operating expenses. Gains on sales of mortgage loans, net of commissions, increased $82,000, or 3.6%, from the first quarter of 2014, due to improved gain on sale margins on mortgage loan originations, despite a decline in mortgage loan originations of $10.4 million.

Income Taxes

The provision for income taxes is based upon the results of operations, adjusted for the effect of certain tax-exempt income and non-deductible expenses. In addition, certain items of income and expense are reported in different periods for financial reporting and tax return purposes. The tax effects of these temporary differences are recognized currently in the deferred income tax provision or benefit. Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax bases of assets and liabilities using the applicable enacted marginal tax rate.

In assessing the ability to realize deferred tax assets, management considers the scheduled reversal of temporary differences, projected future taxable income, and tax planning strategies. Management continues to believe that it is not likely that the Company will realize its deferred tax asset related to net operating losses generated at the state level and accordingly has established a valuation allowance. The Company’s bank subsidiary is not subject to a state income tax in its primary place of business (Virginia). The Company’s other subsidiaries are subject to state income taxes and have generated losses for state income tax purposes which the Company is currently unable to utilize. State net operating loss carryovers will begin to expire after 2026.

The effective tax rate for the three months ended March 31, 2015 and 2014 was 26.7% and 24.9%, respectively. The increase in the effective tax rate is primarily related to tax-exempt interest income on the investment portfolio and tax-exempt bank-owned life insurance income being a larger percentage of pre-tax income during 2014 due to elevated merger-related costs included in pre-tax income.

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BALANCE SHEET

Assets

At March 31, 2015, total assets were $7.4 billion, an increase of $29.9 million from December 31, 2014. The following is a general discussion of changes in certain of the more significant asset line items of the Company’s Consolidated Balance Sheets.

· Investment in securities decreased $14.2 million from $1.2 billion at December 31, 2014 to $1.1 billion, mainly due to a decrease in mortgage backed securities and restricted stock, partially offset by increases in securities issued by states and political subdivisions. For additional information on the Company’s investments, please refer to “Securities” below or Note 3 “Securities” in Part I, Item 1 – Financial Statements, of this report.

· Total loans, net of deferred fees and costs, were $5.4 billion at March 31, 2015, an increase of $41.8 million, or 3.1% (annualized), from December 31, 2014. The increase was primarily driven by a 7.5% (annualized) growth in the commercial loan portfolio, partially offset by a decline in mortgage loans and equity lines. Quarterly average loan balances increased $140.5 million, or 10.8% (annualized), from December 31, 2014, with growth mainly concentrated in commercial loans. For additional information on the Company’s loan activity, please refer to “Loan Portfolio” below or Note 4 “Loans and Allowance for Loan Losses” in Part I, Item 1 – Financial Statements, of this report.

Liabilities and Stockholder’s Equity

At March 31, 2015, total liabilities were $6.4 billion, an increase of $20.2 million from December 31, 2014. The following is a general discussion of changes in certain of the more significant line items in the liability and stockholder’s equity sections of the Company’s Consolidated Balance Sheets.

· Total deposits at March 31, 2015 were $5.7 billion, an increase of $31.5 million when compared to $5.6 million at December 31, 2014, and were one of the predominate sources that funded asset growth for the first three months of 2015. The Company continues to experience a shift from time deposits into noninterest bearing demand accounts, driven by the Company’s focus on acquiring low cost funding sources and customer preference for liquidity in response to current market conditions. Quarterly average deposits declined $20.9 million, or 1.5% (annualized). For further discussion on this topic, see “Deposits” below.

· The Company’s short term borrowings generally include secured financing transactions, such as customer repurchase agreements, advances from the FHLB, and other lines of credit. Short-term borrowings at March 31, 2015 were $374.4 million, a decrease of $13.0 million from December 31, 2014, primarily due to declines in FHLB advances. For additional information on the Company’s borrowings activity, please refer to Note 6 “Borrowings” in Part I, Item 1 – Financial Statements, of this report.

At March 31, 2015, stockholder’s equity was $986.9 million, an increase of $9.7 million from $977.2 million reported at December 31, 2014. The Company’s capital ratios continue to exceed the minimum capital requirements for regulatory purposes. The total capital ratios at March 31, 2015 and December 31, 2014 were 12.82% and 13.38%, respectively. The Tier 1 capital ratios were 12.32% and 12.76% at March 31, 2015 and December 31, 2014, respectively. The Company’s common equity to total asset ratios at March 31, 2015 and December 31, 2014 were 13.36% and 13.28%, respectively, while its tangible common equity to tangible assets ratios were 9.40% and 9.27%, respectively, at the same dates.

On January 31, 2014, the Company’s Board of Directors authorized a share repurchase program to purchase up to $65.0 million worth of the Company’s common stock on the open market or in privately negotiated transactions. The repurchase program is authorized through December 31, 2015. During the three months ended March 31, 2015, approximately 103,000 common shares were repurchased. On April 23, 2015 the Company entered into a Stock Purchase Agreement (the “Agreement”) under its authorized share repurchase program in a privately negotiated transaction. Pursuant to the Agreement, the Company purchased 45,813 shares of its common stock for an aggregate purchase price of $1.0 million or $21.83 per share. As of May 4, 2015, the approximate value of shares that may yet be purchased under the plan is $9.1 million.

Also, the Company paid a cash dividend of $0.15 per share during the first quarter of 2015, the same per share dividend rate paid in the prior quarter and a $0.01 per share, or 7.1%, increase over the prior year quarterly dividend rate.

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Securities

At March 31, 2015, the Company had total investments in the amount of $1.1 billion, or 15.5% of total assets, as compared to $1.2 billion, or 15.7% of total assets, at December 31, 2014. The Company seeks to diversify its portfolio to minimize risk. It focuses on purchasing mortgage-backed securities for cash flow and reinvestment opportunities and securities issued by states and political subdivisions due to the tax benefits and the higher yield offered from these securities. The majority of the Company’s mortgage-backed securities are investment grade. The investment portfolio has a high percentage of municipals and mortgage-backed securities; therefore a higher taxable equivalent yield exists on the portfolio compared to its peers. The Company does not engage in structured derivative or hedging activities within the investment portfolio.

The table below sets forth a summary of the securities available for sale and restricted stock, at fair value for the following periods (dollars in thousands):

	March 31,		December 31,
	2015		2014
U.S. government and agency securities	$	8,595	$	8,454
Obligations of states and political subdivisions		452,438		445,647
Corporate and other bonds		78,141		78,680
Mortgage-backed securities		540,463		559,329
Other securities		10,027		10,004
Total securities available for sale, at fair value		1,089,664		1,102,114
Federal Reserve Bank stock		23,809		23,834
Federal Home Loan Bank stock		29,337		31,020
Total restricted stock		53,146		54,854
Total investments	$	1,142,810	$	1,156,968

During each quarter and at year end, the Company conducts an assessment of the securities portfolio for OTTI consideration. No OTTI was recognized in 2014 or for the first three months of 2015. The Company monitors the portfolio, which is subject to liquidity needs, market rate changes, and credit risk changes, to determine whether adjustments are needed. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

- 53 -

The following table summarizes the contractual maturity of securities available for sale at fair value and their weighted average yields as of March 31, 2015 (dollars in thousands):

	1 Year or Less		1 - 5 Years		5 - 10 Years		Over 10 Years		Total
U.S. government and agency securities:
Amortized cost	$	1,140	$	-	$	7,077	$	19	$	8,236
Fair value		1,157		-		7,209		229		8,595
Weighted average yield (1)		2.91		-		1.99		-		2.12
Mortgage backed securities:
Amortized cost		54		22,856		135,775		370,503		529,188
Fair value		57		23,240		138,634		378,532		540,463
Weighted average yield (1)		4.33		2.16		1.79		1.89		1.88
Obligations of states and political subdivisions:
Amortized cost		7,597		26,816		126,166		270,776		431,355
Fair value		7,690		28,206		132,516		284,026		452,438
Weighted average yield (1)		3.52		4.23		4.71		4.82		4.73
Corporate bonds and other securities:
Amortized cost		11,808		75		26,559		49,938		88,380
Fair value		11,859		76		26,577		49,656		88,168
Weighted average yield (1)		2.00		4.50		2.82		1.87		2.18
Total securities available for sale:
Amortized cost		20,599		49,747		295,577		691,236		1,057,159
Fair value		20,763		51,522		304,936		712,443		1,089,664
Weighted average yield (1)		2.62		3.28		3.13		3.04		3.07

⁽¹⁾ Yields on tax-exempt securities have been computed on a tax-equivalent basis.

As of March 31, 2015, the Company maintained a diversified municipal bond portfolio with approximately 75% of its holdings in general obligation issues and the remainder backed by revenue bonds. Issuances within the State of Texas represented 14%, the State of Washington represented 11%, and the Commonwealth of Virginia represented 10% of the municipal portfolio; no other state had a concentration above 10%. Approximately 97% of municipal holdings are considered investment grade by Moody’s or Standard & Poor’s. The non-investment grade securities are principally insured Texas municipalities with no underlying rating.  When purchasing municipal securities, the Company focuses on strong underlying ratings for general obligation issuers or bonds backed by essential service revenues.

Liquidity

Liquidity represents an institution’s ability to meet present and future financial obligations through either the sale or maturity of existing assets or the acquisition of additional funds through liability management. Liquid assets include cash, interest-bearing deposits with banks, money market investments, federal funds sold, securities available for sale, loans held for sale, and loans maturing or re-pricing within one year. Additional sources of liquidity available to the Company include its capacity to borrow additional funds when necessary through federal funds lines with several correspondent banks, a line of credit with the FHLB, the purchase of brokered certificates of deposit, and a corporate line of credit with a large correspondent bank. Management considers the Company’s overall liquidity to be sufficient to satisfy its depositors’ requirements and to meet its customers’ credit needs.

- 54 -

As of March 31, 2015, the cash, interest-bearing deposits in other banks, money market investments, federal funds sold, loans held for sale, and loans that mature within one year totaled $1.8 billion, or 26.8 %, of total earning assets. As of March 31, 2015, approximately $1.6 billion, or 28.9%, of total loans are scheduled to mature within one year based on contractual maturity, adjusted for expected prepayments.

Loan Portfolio

Loans, net of deferred fees and costs, were $5.4 billion at March 31, 2015 and were $5.3 billion at both December 31, 2014 and March 31, 2014. Loans secured by real estate continue to represent the Company’s largest category, comprising 84.4% of the total loan portfolio at March 31, 2015.

The following table presents the Company’s composition of loans, net of deferred fees and costs, in dollar amounts and as a percentage of total gross loans as of the quarter ended (dollars in thousands):

	March 31,				December 31,				September 30,				June 30,				March 31,
	2015				2014				2014				2014				2014
Loans secured by real estate:
Residential 1-4 family	$	916,557	17.0	%	$	925,371	17.3	%	$	931,672	18.0	%	$	940,121	18.0	%	$	930,744	17.6	%
Commercial		2,078,688	38.6	%		2,051,943	38.3	%		1,994,138	38.5	%		2,052,530	39.3	%		2,066,468	39.3	%
Construction, land development and other land loans		657,581	12.2	%		656,418	12.3	%		611,737	11.8	%		613,027	11.7	%		650,066	12.3	%
Second mortgages		54,371	1.0	%		57,650	1.1	%		61,372	1.2	%		66,477	1.3	%		67,695	1.3	%
Equity lines of credit		515,187	9.6	%		523,808	9.8	%		514,705	10.0	%		517,411	9.9	%		519,308	9.8	%
Multifamily		298,651	5.5	%		297,289	5.6	%		280,116	5.4	%		257,819	4.9	%		258,522	4.9	%
Farm land		27,029	0.5	%		26,043	0.5	%		28,724	0.6	%		29,528	0.6	%		32,500	0.6	%
Total real estate loans		4,548,064	84.4	%		4,538,522	84.9	%		4,422,464	85.5	%		4,476,913	85.7	%		4,525,303	85.8	%
Commercial Loans		409,867	7.6	%		374,080	7.0	%		362,361	7.0	%		373,406	7.1	%		368,949	7.0	%
Consumer installment loans
Personal		335,649	6.2	%		333,126	6.2	%		308,719	6.0	%		299,663	5.7	%		300,809	5.7	%
Credit cards		24,691	0.5	%		24,225	0.5	%		23,736	0.5	%		23,432	0.4	%		22,316	0.4	%
Total consumer installment loans		360,340	6.7	%		357,351	6.7	%		332,455	6.5	%		323,095	6.1	%		323,125	6.1	%
All other loans		69,484	1.3	%		76,043	1.4	%		53,723	1.0	%		59,655	1.1	%		56,821	1.1	%
Gross loans	$	5,387,755	100.0	%	$	5,345,996	100.0	%	$	5,171,003	100.0	%	$	5,233,069	100.0	%	$	5,274,198	100.0	%

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The following table presents the remaining maturities, based on contractual maturity, by loan type and by rate type (variable or fixed), as of March 31, 2015 (dollars in thousands):

					Variable Rate						Fixed Rate
	Total Maturities		Less than 1  year		Total		1-5 years		More than 5  years		Total		1-5 years		More than 5  years
Loans secured by real estate:
Residential 1-4 family	$	916,557	$	75,241	$	346,368	$	19,613	$	326,755	$	494,948	$	269,021	$	225,927
Commercial		2,078,688		193,696		644,232		172,767		471,465		1,240,760		939,384		301,376
Construction, land development and other land loans		657,581		409,058		157,970		136,119		21,851		90,553		77,155		13,398
Second mortgages		54,371		5,102		9,293		3,152		6,141		39,976		13,886		26,090
Equity lines of credit		515,187		35,361		479,212		53,894		425,318		614		475		139
Multifamily		298,651		30,955		81,669		29,814		51,855		186,027		139,401		46,626
Farm land		27,029		7,023		10,565		5,695		4,870		9,441		9,035		406
Total real estate loans		4,548,064		756,436		1,729,309		421,054		1,308,255		2,062,319		1,448,357		613,962
Commercial Loans		409,867		135,556		123,592		117,404		6,188		150,719		120,882		29,837
Consumer installment loans
Personal		335,649		59,598		2,795		2,581		214		273,256		124,088		149,168
Credit cards		24,691		24,691		-		-		-		-		-		-
Total consumer installment loans		360,340		84,289		2,795		2,581		214		273,256		124,088		149,168
All other loans		69,484		7,287		12,107		7,779		4,328		50,090		16,917		33,173
Gross loans	$	5,387,755	$	983,568	$	1,867,803	$	548,818	$	1,318,985	$	2,536,384	$	1,710,244	$	826,140

While the current economic environment is challenging, the Company remains committed to originating soundly underwritten loans to qualifying borrowers within its markets. The Company is focused on providing community-based financial services and discourages the origination of portfolio loans outside of its principal trade areas. As reflected in the loan table, at March 31, 2015, the largest component of the Company’s loan portfolio consisted of real estate loans, concentrated in commercial, construction, and residential 1-4 family. The risks attributable to these concentrations are mitigated by the Company’s credit underwriting and monitoring processes, including oversight by a centralized credit administration function and credit policy and risk management committee, as well as seasoned bankers focusing their lending to borrowers with proven track records in markets with which the Company is familiar. UMG serves as a mortgage brokerage operation, selling the majority of its loan production in the secondary market or selling loans to meet the Bank’s current asset/liability management needs.

Asset Quality

Overview

During the first quarter of 2015, the Company experienced declines in past due and nonaccrual loan and OREO balances from December 31, 2014. The decline in OREO balances was mostly attributable to sales of closed bank premises and foreclosed residential real estate property during the quarter. The loan loss provision increased from the same quarter in the prior year primarily due to a net recovery of $772,000 recorded in the first quarter of 2014 and higher loan balances in 2015. The allowance for loan losses to total loans ratios (both unadjusted and adjusted for acquisition accounting) decreased from both December 31, 2014 and March 31, 2014. All nonaccrual and past due loan metrics discussed below exclude PCI loans totaling $91.3 million (net of fair value mark).

Troubled Debt Restructurings

The total recorded investment in TDRs as of March 31, 2015 was $24.1 million, a decrease of $2.7 million, or 10.1%, from $26.8 million at December 31, 2014 and a decline of $20.2 million, or 45.6%, from $44.3 million at March 31, 2014. Of the $24.1 million of TDRs at March 31, 2015, $21.3 million, or 88.6%, were considered performing while the remaining $2.8 million were considered nonperforming. The decrease in the TDR balance from December 31, 2014 is primarily attributable to net payments of $2.6 million. The TDR activity during the quarter did not have a material impact on the Company’s allowance for loan losses, financial condition, or results of operations.

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Nonperforming Assets

At March 31, 2015, nonperforming assets totaled $42.8 million, a decrease of $4.6 million, or 9.6%, from December 31, 2014 and a decrease of $7.4 million, or 14.7%, from a year ago. In addition, NPAs as a percentage of total outstanding loans decreased 10 basis points to 0.79% in the current quarter from 0.89% as of December 31, 2014 and declined 16 basis points from 0.95% a year earlier.

The following table shows a summary of assets quality balances and related ratios as of and for the quarters ended (dollars in thousands):

	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Nonaccrual loans, excluding PCI loans	$	17,385		$	19,255		$	20,279		$	23,099		$	14,722
Foreclosed properties		21,727			23,058			28,783			33,739			35,487
Former bank premises		3,707			5,060			8,971			4,755			-
Total nonperforming assets		42,819			47,373			58,033			61,593			50,209
Loans past due 90 days and accruing interest		7,932			10,047			16,118			6,870			7,205
Total nonperforming assets and loans past due 90 days and accruing interest	$	50,751		$	57,420		$	74,151		$	68,463		$	57,414
Performing Restructurings	$	21,336		$	22,829		$	26,243		$	30,561		$	37,195
Balances
Allowance for loan losses	$	30,977		$	32,384		$	32,109		$	31,379		$	30,907
Average loans, net of deferred fees and costs		5,360,676			5,220,223			5,196,116			5,246,710			5,279,924
Loans, net of deferred fees and costs		5,387,755			5,345,996			5,171,003			5,233,069			5,274,198
Ratios
NPAs to total loans		0.79	%		0.89	%		1.12	%		1.18	%		0.95	%
NPAs & loans 90 days past due to total loans		0.94	%		1.07	%		1.43	%		1.31	%		1.09	%
NPAs to total loans & OREO		0.79	%		0.88	%		1.11	%		1.17	%		0.95	%
NPAs & loans 90 days past due to total loans & OREO		0.94	%		1.07	%		1.42	%		1.30	%		1.08	%
ALL to nonaccrual loans		178.18	%		168.18	%		158.34	%		135.85	%		209.94	%
ALL to nonaccrual loans & loans 90 days past due		122.36	%		110.52	%		88.22	%		104.70	%		140.95	%

Nonperforming assets at March 31, 2015 included $17.4 million in nonaccrual loans (excluding PCI loans), a net decrease of $1.9 million, or 9.7%, from December 31, 2014 and a net increase of $2.7 million, or 18.1%, from March 31, 2014. The following table shows the activity in nonaccrual loans for the quarter ended (dollars in thousands):

	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Beginning Balance	$	19,255		$	20,279		$	23,099		$	14,722		$	15,035
Net customer payments		(2,996	)		(4,352	)		(1,654	)		(1,088	)		(959	)
Additions		4,379			7,413			1,099			11,087			1,362
Charge-offs		(3,107	)		(1,839	)		(604	)		(137	)		(152	)
Loans returning to accruing status		(53	)		(2,246	)		(723	)		(523	)		-
Transfers to OREO		(93	)		-			(938	)		(962	)		(564	)
Ending Balance	$	17,385		$	19,255		$	20,279		$	23,099		$	14,722

The majority of the additions to nonaccrual loans in the first quarter of 2015 were attributable to three credit relationships.

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The following table presents the composition of nonaccrual loans (excluding PCI loans) and the coverage ratio, which is the allowance for loan losses expressed as a percentage of nonaccrual loans, at the quarters ended (dollars in thousands):

	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Raw Land and Lots	$	1,059		$	2,359		$	5,074		$	5,921		$	3,091
Commercial Construction		1,953			968			672			1,065			1,152
Commercial Real Estate		7,609			6,962			1,821			851			1,548
Single Family Investment Real Estate		1,302			2,070			4,202			5,737			1,794
Commercial and Industrial		2,540			3,286			3,005			3,794			3,655
Other Commercial		69			74			62			121			122
Consumer		2,853			3,536			5,443			5,610			3,360
Total	$	17,385		$	19,255		$	20,279		$	23,099		$	14,722
Coverage Ratio		178.18	%		168.18	%		158.34	%		135.85	%		209.94	%

Nonperforming assets at March 31, 2015 also included $25.4 million in OREO, a decrease of $2.7 million, or 9.5%, from December 31, 2014 and a decrease of $10.1 million, or 28.3%, from the prior year. The following table shows the activity in OREO for the quarters ended (dollars in thousands):

	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Beginning Balance	$	28,118		$	37,754		$	38,494		$	35,487		$	34,116
Additions of foreclosed property		158			367			2,553			1,619			5,404
Additions of former bank premises		402			63			4,814			6,052			-
Capitalized Improvements		56			424			203			59			-
Valuation Adjustments		(590	)		(381	)		(6,192	)		(817	)		(256	)
Proceeds from sales		(2,748	)		(11,362	)		(2,216	)		(3,913	)		(3,800	)
Gains (losses) from sales		38			1,253			98			7			23
Ending Balance	$	25,434		$	28,118		$	37,754		$	38,494		$	35,487

During the first quarter of 2015, the majority of sales of OREO were related to closed bank premises and residential real estate.

The following table presents the composition of the OREO portfolio at the quarter ended (dollars in thousands):

	March 31,		December 31,		September 30,		June 30,		March 31,
	2015		2014		2014		2014		2014
Land	$	8,412	$	8,726	$	9,054	$	11,378	$	11,387
Land Development		7,192		7,162		7,585		10,509		11,314
Residential Real Estate		4,794		5,736		6,696		6,019		7,408
Commercial Real Estate		1,329		1,434		5,448		5,833		5,378
Former Bank Premises (1)		3,707		5,060		8,971		4,755		-
Total	$	25,434	$	28,118	$	37,754	$	38,494	$	35,487

⁽¹⁾ Includes closed branch property and land previously held for branch sites.

Past Due Loans

At March 31, 2015, total accruing past due loans, excluding PCI loans, were $42.7 million, or 0.79% of total loans, compared to $48.1 million, or 0.90%, at December 31, 2014 and $49.7 million, or 0.94%, a year ago. At March 31, 2015, loans past due 90 days or more and accruing interest, excluding PCI loans, totaled $7.9 million, or 0.15% of total loans, compared to $10.0 million, or 0.19%, at December 31, 2014 and $7.2 million, or 0.14%, a year ago.

Charge-offs and delinquencies

For the quarter ended March 31, 2015, net charge-offs were $3.2 million, or 0.24% on an annualized basis, compared to a net recovery of $772,000, or (0.06%), for the same quarter last year. Of the $3.2 million in loans charged off in the first quarter of 2015, $2.9 million, or 90.1%, related to impaired loans specifically reserved for in the prior period.

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Provision

The provision for loan losses for the quarter ended March 31, 2015 was $1.8 million, an increase of $1.8 million compared to the same quarter a year ago. The increase in the provision for loan losses in the current quarter compared to the same quarter in the prior year was primarily driven by a net recovery of $772,000 in the first quarter of 2014 and higher loan balances in 2015.

Allowance for Loan Losses

The allowance for loan losses decreased $1.4 million from December 31, 2014 to $31.0 million at March 31, 2015. The decline in ALL was primarily driven by lower levels of specific reserves required on impaired loans. The ALL as a percentage of the total loan portfolio, adjusted for acquisition accounting (non-GAAP), was 1.03% at March 31, 2015, a decrease from 1.08% at December 31, 2014 and 1.09% at March 31, 2014. The allowance for loan losses as a percentage of the total loan portfolio was 0.57% at March 31, 2015, 0.61% at December 31, 2014, and 0.59% at March 31, 2014. In acquisition accounting, there is no carryover of previously established allowance for loan losses, as acquired loans are recorded at fair value.

The nonaccrual loan coverage ratio remains strong at 178.2% at March 31, 2015, compared to 168.2% at December 31, 2014, and 209.9% at March 31, 2014. The current level of the allowance for loan losses reflects specific reserves related to nonperforming loans, current risk ratings on loans, net charge-off activity, loan growth, delinquency trends, and other credit risk factors that the Company considers important in assessing the adequacy of the allowance for loan losses.

The following table summarizes activity in the allowance for loan losses during the quarters ended (dollars in thousands):

	March 31,			December 31,			September 30,			June 30,			March 31,
	2015			2014			2014			2014			2014
Balance, beginning of period	$	32,384		$	32,109		$	31,379		$	30,907		$	30,135
Loans charged-off:
Commercial		671			879			132			476			70
Real estate		2,596			3,584			1,138			695			438
Consumer		562			365			495			369			379
Total loans charged-off		3,829			4,828			1,765			1,540			887
Recoveries:
Commercial		97			59			108			84			65
Real estate		308			318			411			193			1,392
Consumer		267			226			176			235			202
Total recoveries		672			603			695			512			1,659
Net charge-offs		3,157			4,225			1,070			1,028			(772	)
Provision for loan losses		1,750			4,500			1,800			1,500			-
Balance, end of period	$	30,977		$	32,384		$	32,109		$	31,379		$	30,907
Allowance for loan losses to loans		0.57	%		0.61	%		0.62	%		0.60	%		0.59	%
ALL to loans, adjusted for acquisition accounting (Non-GAAP)		1.03	%		1.08	%		1.12	%		1.11	%		1.09	%
Net charge-offs to total loans		0.24	%		0.31	%		0.08	%		0.08	%		(0.06	)%
Provision to total loans		0.13	%		0.33	%		0.14	%		0.11	%		0.00	%

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The following table shows both an allocation of the allowance for loan losses among loan categories based upon the loan portfolio’s composition and the ratio of the related outstanding loan balances to total loans as of the quarters ended (dollars in thousands):

	March 31,				December 31,				September 30,				June 30,				March 31,
	2015				2014				2014				2014				2014
		$	%(1)			$	%(1)			$	%(1)		$		%(1)			$	%(1)
Commercial	$	2,354	7.6	%	$	2,266	7.0	%	$	2,250	7.0	%	$	2,239	7.1	%	$	2,162	7.0	%
Real estate		26,145	84.4	%		27,493	84.9	%		27,461	85.5	%		26,876	85.7	%		26,519	85.8	%
Consumer		2,478	8.0	%		2,625	8.1	%		2,398	7.5	%		2,264	7.2	%		2,226	7.2	%
Total	$	30,977	100.0	%	$	32,384	100.0	%	$	32,109	100.0	%	$	31,379	100.0	%	$	30,907	100.0	%

(1) The percent represents the loan balance divided by total loans.

Deposits

As of March 31, 2015, total deposits were $5.7 billion, an increase of $31.5 million, or 0.56%, from December 31, 2014. Total interest-bearing deposits consist of NOW, money market, savings, and time deposit account balances. Total time deposit balances of $1.2 billion accounted for 28.3% of total interest-bearing deposits at March 31, 2015. The Company continues to experience a shift from time deposits into savings and noninterest bearing demand accounts, driven by the Company’s focus on acquiring low cost funding sources and customer preference for liquidity in response to current market conditions.

The following table presents the deposit balances by major categories as of the quarters ended (dollars in thousands):

	March 31,					December 31,
	2015					2014
Deposits:	Amount		% of total deposits			Amount		% of total deposits
Non-interest bearing	$	1,274,935	22.5		%	$	1,199,378	21.3		%
NOW accounts		1,328,994		23.4	%		1,332,029		23.6	%
Money market accounts		1,258,564		22.2	%		1,261,520		22.4	%
Savings accounts		565,506		10.0	%		548,526		9.7	%
Time deposits of $100,000 and over		520,720		9.2	%		550,842		9.8	%
Other time deposits		721,509		12.7	%		746,475		13.2	%
Total Deposits	$	5,670,228		100.0	%	$	5,638,770		100.0	%

The Company may also borrow additional funds by purchasing certificates of deposit through a nationally recognized network of financial institutions. The Company utilizes this funding source when rates are more favorable than other funding sources. As of March 31, 2015 and December 31, 2014, none were purchased and included in certificates of deposit on the Company’s Consolidated Balance Sheet. Maturities of time deposits as of March 31, 2015 are as follows (dollars in thousands):

	Within 3 Months		3 – 12 Months		Over 12 Months		Total
Maturities of time deposits of $100,000 and over	$	74,023	$	187,761	$	258,936	$	520,720
Maturities of other time deposits		116,111		281,249		324,149		721,509
Total time deposits	$	190,134	$	469,010	$	583,085	$	1,242,229

Capital Resources

Capital resources represent funds, earned or obtained, over which financial institutions can exercise greater or longer control in comparison with deposits and borrowed funds. The adequacy of the Company’s capital is reviewed by management on an ongoing basis with reference to size, composition, and quality of the Company’s resources and consistency with regulatory requirements and industry standards. Management seeks to maintain a capital structure that will assure an adequate level of capital to support anticipated asset growth and to absorb potential losses, yet allow management to effectively leverage its capital to maximize return to shareholders.

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In July 2013, the Federal Reserve issued a final rule that makes technical changes to its market risk capital rule to align it with the Basel III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. Effective January 1, 2015, the final rule requires the Company to comply with the following minimum capital ratios: (i) a new common equity Tier 1 capital ratio of 4.5% of risk-weighted assets; (ii) a Tier 1 capital ratio of 6.0% of risk-weighted assets (increased from the prior requirement of 4.0%); (iii) a total capital ratio of 8.0% of risk-weighted assets (unchanged from prior requirement); and (iv) a leverage ratio of 4.0% of total assets (unchanged from the prior requirement). These are the initial capital requirements applicable to the Company. All such capital requirements will be phased in over a four-year period; the next phase does not take effect until January 1, 2016. The capital requirements contained in the final rule also include changes in the risk weights of assets to better reflect credit risk and other risk exposures.

Beginning January 1, 2015, the Company calculates its regulatory capital under the U.S. Basel III Standardized Approach. The Company calculated regulatory capital measures for periods prior to 2015 under previous regulatory requirements. The table summarizes the Company’s regulatory capital and related ratios for the periods presented (dollars in thousands):

	March 31,			December 31,			March 31,
	2015			2014			2014
Tier 1 capital	$	762,869		$	734,755		$	736,785
Tier 2 capital		31,093			35,830			38,188
Total risk-based capital		793,962			770,585			774,973
Risk-weighted assets		6,191,268			5,758,071			5,661,916
Capital ratios:
Common equity Tier 1 capital ratio		10.86	%		N/A			N/A
Tier 1 capital ratio		12.32	%		12.76	%		13.01	%
Total capital ratio		12.82	%		13.38	%		13.69	%
Leverage ratio (Tier 1 capital to average assets)		10.79	%		10.62	%		10.65	%
Common equity to total assets		13.36	%		13.28	%		13.46	%
Tangible common equity to tangible assets		9.40	%		9.27	%		9.29	%

NON-GAAP MEASURES

In reporting the Company’s results as of and for the periods ended March 31, 2015 and 2014, the Company has provided supplemental performance measures on an operating or tangible basis. Operating measures exclude acquisition costs unrelated to the Company’s normal operations. The Company believes these measures are useful to investors as they exclude non-operating adjustments resulting from acquisition activity and allow investors to see the combined economic results of the organization. Tangible common equity is used in the calculation of certain capital and per share ratios. The Company believes tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses.

These measures are a supplement to U.S. GAAP used to prepare the Company’s financial statements and should not be viewed as a substitute for U.S. GAAP measures. In addition, the Company’s non-GAAP measures may not be comparable to non-GAAP measures of other companies.

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The following table reconciles these non-GAAP measures from their respective U.S. GAAP basis measures for each of the periods presented (dollars in thousands, except per share amounts):

	Three Months Ended
	March 31,
	2015			2014
Operating Earnings
Net Income (GAAP)	$	15,701		$	7,708
Plus: Merger and conversion related expense, after tax		-			9,016
Net operating earnings (loss) (non-GAAP)	$	15,701		$	16,724
Operating earnings per share - Basic	$	0.35		$	0.36
Operating earnings per share - Diluted		0.35			0.36
Operating ROA		0.86	%		0.94	%
Operating ROE		6.48	%		6.80	%
Operating ROTCE		9.67	%		10.27	%
Community Bank Segment Operating Earnings
Net Income (GAAP)	$	15,968		$	9,088
Plus: Merger and conversion related expense, after tax		-			9,016
Net operating earnings (loss) (non-GAAP)	$	15,968		$	18,104
Operating earnings per share - Basic	$	0.36		$	0.39
Operating earnings per share - Diluted		0.36			0.39
Operating ROA		0.88	%		1.02	%
Operating ROE		6.61	%		7.47	%
Operating ROTCE		9.88	%		11.38	%
Operating Efficiency Ratio FTE
Net Interest Income (GAAP)	$	61,969		$	63,758
FTE adjustment		2,161			1,946
Net Interest Income (FTE)	$	64,130		$	65,704
Noninterest Income (GAAP)		15,054			13,788
Noninterest Expense (GAAP)	$	53,840		$	67,285
Merger and conversion related expense		-			13,168
Noninterest Expense (Non-GAAP)	$	53,840		$	54,117
Operating Efficiency Ratio FTE (non-GAAP)		67.99	%		68.08	%
Community Bank Segment Operating Efficiency Ratio FTE
Net Interest Income (GAAP)	$	61,723		$	63,526
FTE adjustment		2,161			1,962
Net Interest Income (FTE)	$	63,884		$	65,488
Noninterest Income (GAAP)		12,848			11,659
Noninterest Expense (GAAP)	$	50,972		$	62,746
Merger and conversion related expense		-			13,168
Noninterest Expense (Non-GAAP)	$	50,972		$	49,578
Operating Efficiency Ratio FTE (non-GAAP)		66.43	%		64.26	%
Tangible Common Equity
Ending equity	$	986,916		$	981,977
Less: Ending goodwill		293,522			296,876
Less: Ending core deposit intangibles		29,533			38,935
Ending tangible common equity	$	663,861		$	646,166
Average equity	$	982,548		$	997,332
Less: Average goodwill		293,522			296,876
Less: Average core deposit intangibles		30,597			40,449
Average tangible common equity	$	658,429		$	660,007

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The allowance for loan losses ratio, adjusted for acquisition accounting (non-GAAP), includes an adjustment for the fair value mark on acquired performing loans. The acquired performing loans are reported net of the related fair value mark in loans, net of deferred fees and costs, on the Company’s Consolidated Balance Sheets; therefore, the fair value mark is added back to the balance to represent the total loan portfolio. The adjusted allowance for loan losses, including the fair value mark, represents the total reserve on the Company’s loan portfolio. The PCI loans, net of the respective fair value mark, are removed from the loans, net of deferred fees and costs, as these PCI loans are not covered by the allowance established by the Company unless changes in expected cash flows indicate that one of the PCI loan pools is impaired, at which time an allowance for PCI loans will be established. U.S. GAAP requires the acquired allowance for loan losses not be carried over in an acquisition or merger. The Company believes the presentation of the allowance for loan losses ratio, adjusted for acquisition accounting, is useful to investors because the acquired loans were purchased at a market discount with no allowance for loan losses carried over to the Company, and the fair value mark on the purchased performing loans represents the allowance associated with those purchased loans. The Company believes that this measure is a better reflection of the reserves on the Company’s loan portfolio. The following table shows the allowance for loan losses as a percentage of the total loan portfolio, adjusted for acquisition accounting, as of the quarters ended (dollars in thousands):

	March 31,			December 31,			March 31,
	2015			2014			2014
Allowance for loan losses	$	30,977		$	32,384		$	30,907
Remaining fair value mark on acquired performing loans		23,794			24,340			25,515
Adjusted allowance for loan losses	$	54,771		$	56,724		$	56,422
Loans, net of deferred fees and costs	$	5,387,755		$	5,345,996		$	5,274,198
Remaining fair value mark on acquired performing loans		23,794			24,340			25,515
Less: PCI loans, net of fair value mark		91,346			105,788			138,431
Adjusted loans, net of deferred fees and costs	$	5,320,203		$	5,264,548		$	5,161,282
Allowance for loan losses ratio		0.57	%		0.61	%		0.59	%
Allowance for loan losses ratio, adjusted for acquisition accounting		1.03	%		1.08	%		1.09	%

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due to changes in interest rates, exchange rates, and equity prices. The Company’s market risk is composed primarily of interest rate risk. The ALCO of the Company is responsible for reviewing the interest rate sensitivity position of the Company and establishing policies to monitor and limit exposure to this risk. The Company’s Board of Directors reviews and approves the guidelines established by ALCO.

Interest rate risk is monitored through the use of three complementary modeling tools: static gap analysis, earnings simulation modeling, and economic value simulation (net present value estimation). Each of these models measures changes in a variety of interest rate scenarios. While each of the interest rate risk models has limitations, taken together they represent a reasonably comprehensive view of the magnitude of interest rate risk in the Company, the distribution of risk along the yield curve, the level of risk through time, and the amount of exposure to changes in certain interest rate relationships. Static gap, which measures aggregate re-pricing values, is less utilized because it does not effectively measure the options risk impact on the Company and is not addressed here. Earnings simulation and economic value models, which more effectively measure the cash flow and optionality impacts, are utilized by management on a regular basis and are explained below.

The Company determines the overall magnitude of interest sensitivity risk and then formulates policies and practices governing asset generation and pricing, funding sources and pricing, and off-balance sheet commitments. These decisions are based on management’s expectations regarding future interest rate movements, the states of the national, regional, and local economies, and other financial and business risk factors. The Company uses computer simulation modeling to measure and monitor the effect of various interest rate scenarios and business strategies on net interest income. This modeling reflects interest rate changes and the related impact on net interest income and net income over specified time horizons.

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EARNINGS SIMULATION ANALYSIS

Management uses simulation analysis to measure the sensitivity of net interest income to changes in interest rates. The model calculates an earnings estimate based on current and projected balances and rates. This method is subject to the accuracy of the assumptions that underlie the process, but it provides a better analysis of the sensitivity of earnings to changes in interest rates than other analyses, such as the static gap analysis discussed above.

Assumptions used in the model are derived from historical trends and management’s outlook and include loan and deposit growth rates and projected yields and rates. Such assumptions are monitored by management and periodically adjusted as appropriate. All maturities, calls, and prepayments in the securities portfolio are assumed to be reinvested in like instruments. Mortgage loans and mortgage-backed securities prepayment assumptions are based on industry estimates of prepayment speeds for portfolios with similar coupon ranges and seasoning. Different interest rate scenarios and yield curves are used to measure the sensitivity of earnings to changing interest rates. Interest rates on different asset and liability accounts move differently when the prime rate changes and are reflected in the different rate scenarios.

The Company uses its simulation model to estimate earnings in rate environments where rates are instantaneously shocked up or down around a “most likely” rate scenario, based on implied forward rates. The analysis assesses the impact on net interest income over a 12 month time horizon after an immediate increase or “shock” in rates, of 100 basis points up to 300 basis points. The shock down 200 or 300 basis points analysis is not as meaningful as interest rates across most of the yield curve are at historic lows and cannot decrease another 200 or 300 basis points. The model, under all scenarios, does not drop the index below zero.

The following table represents the interest rate sensitivity on net interest income for the Company across the rate paths modeled for balances ended March 31, 2015 and 2014 (dollars in thousands):

	Change In Net Interest Income
	March 31,
	2015					2014
		%		$			%		$
Change in Yield Curve:
+300 basis points		4.74		12,460			3.01		7,798
+200 basis points		3.29		8,640			2.08		5,386
+100 basis points		1.32		3,472			0.72		1,862
Most likely rate scenario		-		-			-		-
-100 basis points		(1.59	)	(4,171	)		(1.03	)	(2,665	)
-200 basis points		(3.71	)	(9,740	)		(3.41	)	(8,859	)
-300 basis points		(3.81	)	(10,020	)		(4.39	)	(11,399	)

Asset sensitivity indicates that in a rising interest rate environment the Company’s net interest income would increase and in a decreasing interest rate environment the Company’s net interest income would decrease. Liability sensitivity indicates that in a rising interest rate environment the Company’s net interest income would decrease and in a decreasing interest rate environment the Company’s net interest income would increase.

As of March 31, 2015, the Company is more asset sensitive when compared to March 31, 2014 due to changes in the composition of the balance sheet. In becoming “asset sensitive,” the Company expects net interest income to increase as market rates increase. In the decreasing interest rate environments, the Company shows a decline in net interest income as interest-earning assets re-price lower and interest-bearing deposits remain at or near their floors. It should be noted that although net interest income simulation results are presented through the down 300 basis points interest rate environments, the Company does not believe the down 200 and 300 basis point scenarios are plausible given the current level of interest rates.

- 64 -

ECONOMIC VALUE SIMULATION

Economic value simulation is used to calculate the estimated fair value of assets and liabilities over different interest rate environments. Economic values are calculated based on discounted cash flow analysis. The net economic value of equity is the economic value of all assets minus the economic value of all liabilities. The change in net economic value over different rate environments is an indication of the longer-term earnings capability of the balance sheet. The same assumptions are used in the economic value simulation as in the earnings simulation. The economic value simulation uses instantaneous rate shocks to the balance sheet.

The following chart reflects the estimated change in net economic value over different rate environments using economic value simulation for the balances at the periods ended March 31, 2015 and 2014 (dollars in thousands):

	Change In Economic Value of Equity
	March 31,
	2015					2014
		%		$			%		$
Change in Yield Curve:
+300 basis points		0.44		5,675			(4.72	)	(63,030	)
+200 basis points		1.43		18,365			(2.48	)	(33,128	)
+100 basis points		1.32		16,964			(0.92	)	(12,250	)
Most likely rate scenario		-		-			-		-
-100 basis points		(3.90	)	(50,216	)		(3.92	)	(52,310	)
-200 basis points		(8.96	)	(115,286	)		(9.63	)	(128,531	)
-300 basis points		(8.03	)	(103,270	)		(11.58	)	(154,548	)

The shock down 200 or 300 basis points analysis is not as meaningful since interest rates across most of the yield curve are at historic lows and cannot decrease another 200 or 300 basis points.  While management considers this scenario highly unlikely, the natural floor increases the Company’s sensitivity in rates down scenarios. 

As of March 31, 2015, the Company’s economic value of equity model projects that a sudden increase in market interest rates would result in a smaller change in the Company’s estimated economic value of equity in the up 200 or 300 basis point scenarios compared to March 31, 2014. The Company generally has become less sensitive to market interest rate increases while sensitivity to market rate declines remain comparable as of March 31, 2015 compared to March 31, 2014.

ITEM 4 – CONTROLS AND PROCEDURES

The Company maintains “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed in reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating its disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, management was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Based on their evaluation as of the end of the period covered by this quarterly report on Form 10-Q, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures were effective at the reasonable assurance level. There was no change in the internal control over financial reporting that occurred during the quarter ended March 31, 2015 that has materially affected, or is reasonably likely to materially affect, the internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

In the ordinary course of its operations, the Company and its subsidiaries are parties to various legal proceedings. Based on the information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in such proceedings, in the aggregate, will not have a material adverse effect on the business or the financial condition or results of operations of the Company.

ITEM 1A – RISK FACTORS

There have been no material changes with respect to the risk factors disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Sales of Unregistered Securities

Director Stock Retainer

Beginning in the third quarter of 2014, non-employee members of the Company’s Board of Directors could elect to receive, on a quarterly basis, either cash or Company common stock in lieu of an annual stock retainer for services as a director. Shares issued to non-employee directors of the Company’s Board of Directors from authorized but unissued shares of the Company’s common stock are compensation to such directors for their services to the applicable board. Such shares are considered exempt from registration as they are issued pursuant to Section 4(a)(2) of the Securities Act of 1933. The shares are also issued in a transaction that meets the requirements of Rule 16b-3(d) of the Exchange Act.

In the first quarter of 2015, the Company issued the following stock retainer awards to non-employee directors of the Company, including shares exempt from registration as set forth above:

	Issue Date	Total number  of shares issued		Price per  share ($)		Valuation ($)
Union Bankshares Corporation Board of Directors (1)	March 2, 2015		4,576		21.87		100,077
	Total		4,576				100,077

(1) The price per share is based on the per share closing sale price of the Company’s common stock on the date prior to the issue date.

For the three months ended March 31, 2015, the aggregate amount of director services received by the Company for the stock issuances to non-employee directors of the Company was $100,077.

(b) Use of Proceeds – Not Applicable

(c) Issuer Purchases of Securities

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Stock Repurchase Program

The following information describes the Company’s common stock repurchases during the three months ended March 31, 2015:

Period	Total number of shares purchased (1)		Average price paid per share ($)		Total number of shares purchased as  part of publicly announced plan (2)		Approximate value of shares that may yet be purchased under the plan ($) (2)
December 31, 2014								12,460,000
January 1 - January 31, 2015		102,843		23.17		102,843		10,077,000
February 1 - February 28, 2015		-		-		-		10,077,000
March 1 - March 31, 2015		-		-		-		10,077,000
Total		102,843		23.17		102,843		10,077,000

⁽¹⁾On January 31, 2014, the Company’s Board of Directors authorized a share repurchase program to purchase up to $65.0 million worth of the Company’s common stock on the open market or in privately negotiated transactions. The repurchase program is authorized through December 31, 2015.

⁽²⁾For purposes of the Company’s consolidated financial statements included in this Form 10-Q, the impact of these repurchases is recorded according to settlement dates.

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ITEM 6 – EXHIBITS

The following exhibits are filed as part of this Form 10-Q and this list includes the Exhibit Index:

Exhibit No.	Description
10.12	Union Bankshares Corporation Stock and Incentive Plan (as amended and restated effective April 21, 2015) (incorporated by reference to Exhibit 99.1 to Form S-8 Registration Statement; SEC file no. 333-203580).
10.23	Form of Time-Based Restricted Stock Agreement under Union Bankshares Corporation Stock and Incentive Plan (incorporated by reference to Exhibit 10.23 to Current Report on Form 8-K filed on April 27, 2015).
10.24	Form of Performance Share Unit Agreement under Union Bankshares Corporation Stock and Incentive Plan (incorporated by reference to Exhibit 10.24 to Current Report on Form 8-K filed on April 27, 2015).
15.01	Letter regarding unaudited interim financial information
31.01	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02	Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01	Certification of Principal Executive Officer and Principal Financial and Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.00	Interactive data files formatted in eXtensible Business Reporting Language for the quarter ended March 31, 2015 pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to the Consolidated Financial Statements.

- 68 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Union Bankshares Corporation
		(Registrant)
Date: May 7, 2015	By:	/s/ G. William Beale
		G. William Beale,
		President and Chief Executive Officer
		(principal executive officer)
Date: May 7, 2015	By:	/s/ Robert M. Gorman
		Robert M. Gorman,
		Executive Vice President and Chief Financial Officer
		(principal financial and accounting officer)

- 69 -

EX-15.01

Exhibit 15.01

The Shareholders and Board of Directors of Union Bankshares Corporation

We are aware of the incorporation by reference in the Registration Statements (Form S-3 Nos. 333-198710, 333-165874, 333-144481, 33-78060, 333-102012, and 333-81199 and Form S-8 Nos. 333-203580, 333-193364, 333-175808, 333-113842, and 333-113839) of Union Bankshares Corporation of our report dated May 7, 2015 relating to the unaudited consolidated interim financial statements of Union Bankshares Corporation that are included in its Forms 10-Q for the quarter ended March 31, 2015.

Under Rule 436(c) of the 1933 Act, our reports are not a part of the registration statements prepared or certified by accountants within the meaning of Section 7 or 11 of the 1933 Act.

/s/ Ernst & Young LLP

Richmond, Virginia

May 7, 2015

EX-31.01

Exhibit 31.01

CERTIFICATIONS

I, G. William Beale, certify that:

1.  I have reviewed this report on Form 10-Q of Union Bankshares Corporation;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)  disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2015
	/s/ G. William Beale
	G. William Beale,
	President and Chief Executive Officer

EX-31.02

Exhibit 31.02

CERTIFICATIONS

I, Robert M. Gorman, certify that:

1.  I have reviewed this report on Form 10-Q of Union Bankshares Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)  evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)  disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2015
	/s/ Robert M. Gorman
	Robert M. Gorman,
	Executive Vice President and Chief Financial Officer

EX-32.01

Exhibit 32.01

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Union Bankshares Corporation (the “Company”) on Form 10-Q for the period ending March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned Chief Executive Officer and Chief Financial Officer of the Company hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002 that based on their knowledge and belief: 1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and 2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.

/s/ G. William Beale

G. William Beale, President and Chief Executive Officer

/s/ Robert M. Gorman

Robert M. Gorman, Executive Vice President and Chief Financial Officer

May 7, 2015

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Union Bankshares Corporation and will be retained by Union Bankshares Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

ACQUISITIONS (Schedule of Effect of Amortization and Accretion Related to Acquisition) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
ACQUISITIONS [Abstract]
Loans	$ 639	$ (546)
Core deposit intangibles	(2,222)	(2,616)
Borrowings	137	75
Time deposits	1,075	2,920
Net impact to income before taxes	$ (371)	$ (167)

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Acquired Loan Portfolio and Accretable Yield) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Accretable Yield
Balance at beginning of period	$ 28,956		$ 2,980
Additions			34,653
Accretion	(1,501)		(1,846)
Reclass of nonaccretable difference due to improvement in expected cash flows	2,695
Other non-credit changes, net	(5,619)	[1]	(1,365)	[1]
Balance at end of period	$ 24,531		$ 34,422

[1] This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter.

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Impaired Loans Individually Evaluated for Impairment by Class) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	$ 89,907	$ 101,316
Loans without a specific allowance, Unpaid Principal Balance	94,366	109,728
Loans without a specific allowance, YTD Average Investment	92,990	109,502
Loans without a specific allowance, Interest Income Recognized	957	4,589
Loans with a specific allowance, Recorded Investment	24,849	30,864
Loans with a specific allowance, Unpaid Principal Balance	28,537	31,127
Loans with a specific allowance, Related Allowance	1,704	4,531
Loans with a specific allowance, YTD Average Investment	26,326	31,682
Loans with a specific allowance, Interest Income Recognized	264	1,282
Recorded Investment	114,756	132,180
Unpaid Principal Balance	122,903	140,855
Year to Date Average Investment	119,316	141,184
Interest Income Recognized	1,221	5,871
Commercial Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	6,242	5,281
Loans without a specific allowance, Unpaid Principal Balance	6,517	5,367
Loans without a specific allowance, YTD Average Investment	6,320	5,755
Loans without a specific allowance, Interest Income Recognized	52	165
Loans with a specific allowance, Recorded Investment	40	570
Loans with a specific allowance, Unpaid Principal Balance	40	570
Loans with a specific allowance, Related Allowance	4	51
Loans with a specific allowance, YTD Average Investment	37	506
Loans with a specific allowance, Interest Income Recognized		13
Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	17,435	15,722
Loans without a specific allowance, Unpaid Principal Balance	17,590	16,430
Loans without a specific allowance, YTD Average Investment	16,580	16,774
Loans without a specific allowance, Interest Income Recognized	199	737
Loans with a specific allowance, Recorded Investment	7,142	5,951
Loans with a specific allowance, Unpaid Principal Balance	7,257	5,999
Loans with a specific allowance, Related Allowance	526	355
Loans with a specific allowance, YTD Average Investment	7,177	5,946
Loans with a specific allowance, Interest Income Recognized	67	280
Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	13,488	22,917
Loans without a specific allowance, Unpaid Principal Balance	15,638	22,917
Loans without a specific allowance, YTD Average Investment	16,086	23,209
Loans without a specific allowance, Interest Income Recognized	124	1,116
Loans with a specific allowance, Recorded Investment	6,284	10,575
Loans with a specific allowance, Unpaid Principal Balance	6,284	10,572
Loans with a specific allowance, Related Allowance	146	2,017
Loans with a specific allowance, YTD Average Investment	7,408	10,823
Loans with a specific allowance, Interest Income Recognized	96	474
Raw Land and Lots [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	41,245	44,790
Loans without a specific allowance, Unpaid Principal Balance	41,513	47,662
Loans without a specific allowance, YTD Average Investment	41,561	47,988
Loans without a specific allowance, Interest Income Recognized	490	2,124
Loans with a specific allowance, Recorded Investment	628	1,343
Loans with a specific allowance, Unpaid Principal Balance	628	1,373
Loans with a specific allowance, Related Allowance	11	98
Loans with a specific allowance, YTD Average Investment	700	1,472
Loans with a specific allowance, Interest Income Recognized	8	59
Single Family Investment Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	3,874	4,197
Loans without a specific allowance, Unpaid Principal Balance	4,574	4,881
Loans without a specific allowance, YTD Average Investment	4,271	6,534
Loans without a specific allowance, Interest Income Recognized	36	170
Loans with a specific allowance, Recorded Investment	3,537	4,125
Loans with a specific allowance, Unpaid Principal Balance	3,562	4,144
Loans with a specific allowance, Related Allowance	281	562
Loans with a specific allowance, YTD Average Investment	3,552	4,293
Loans with a specific allowance, Interest Income Recognized	38	159
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	2,889	4,453
Loans without a specific allowance, Unpaid Principal Balance	3,427	7,933
Loans without a specific allowance, YTD Average Investment	3,204	5,070
Loans without a specific allowance, Interest Income Recognized	26	121
Loans with a specific allowance, Recorded Investment	4,340	2,938
Loans with a specific allowance, Unpaid Principal Balance	7,610	3,009
Loans with a specific allowance, Related Allowance	459	582
Loans with a specific allowance, YTD Average Investment	4,443	3,125
Loans with a specific allowance, Interest Income Recognized	37	138
Other Commercial [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	949	1,536
Loans without a specific allowance, Unpaid Principal Balance	955	1,538
Loans without a specific allowance, YTD Average Investment	957	1,624
Loans without a specific allowance, Interest Income Recognized	14	90
Loans with a specific allowance, Recorded Investment	336	359
Loans with a specific allowance, Unpaid Principal Balance	356	378
Loans with a specific allowance, Related Allowance	31	32
Loans with a specific allowance, YTD Average Investment	348	442
Loans with a specific allowance, Interest Income Recognized	5	29
Mortgage [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	3,234	1,571
Loans without a specific allowance, Unpaid Principal Balance	3,342	1,582
Loans without a specific allowance, YTD Average Investment	3,312	1,583
Loans without a specific allowance, Interest Income Recognized	15	58
Loans with a specific allowance, Recorded Investment	1,390	3,323
Loans with a specific allowance, Unpaid Principal Balance	1,428	3,375
Loans with a specific allowance, Related Allowance	105	481
Loans with a specific allowance, YTD Average Investment	1,398	3,381
Loans with a specific allowance, Interest Income Recognized	3	60
Consumer Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans with a specific allowance, Recorded Investment	378	375
Loans with a specific allowance, Unpaid Principal Balance	378	375
Loans with a specific allowance, Related Allowance	35	34
Loans with a specific allowance, YTD Average Investment	378	373
Loans with a specific allowance, Interest Income Recognized	5	19
Indirect Auto [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Unpaid Principal Balance	6	6
Loans without a specific allowance, YTD Average Investment	3	4
Loans without a specific allowance, Interest Income Recognized
Indirect Marine [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment		201
Loans without a specific allowance, Unpaid Principal Balance		505
Loans without a specific allowance, YTD Average Investment		281
Loans with a specific allowance, Recorded Investment	48	192
Loans with a specific allowance, Unpaid Principal Balance	149	192
Loans with a specific allowance, Related Allowance	4	5
Loans with a specific allowance, YTD Average Investment	59	199
Loans with a specific allowance, Interest Income Recognized		15
HELOCs [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	465	559
Loans without a specific allowance, Unpaid Principal Balance	598	699
Loans without a specific allowance, YTD Average Investment	543	573
Loans without a specific allowance, Interest Income Recognized	1	8
Loans with a specific allowance, Recorded Investment	436	434
Loans with a specific allowance, Unpaid Principal Balance	436	434
Loans with a specific allowance, Related Allowance	4	4
Loans with a specific allowance, YTD Average Investment	436	436
Loans with a specific allowance, Interest Income Recognized	4	17
Other Consumer [Member]
Financing Receivable, Impaired [Line Items]
Loans without a specific allowance, Recorded Investment	86	89
Loans without a specific allowance, Unpaid Principal Balance	206	208
Loans without a specific allowance, YTD Average Investment	153	107
Loans without a specific allowance, Interest Income Recognized
Loans with a specific allowance, Recorded Investment	290	679
Loans with a specific allowance, Unpaid Principal Balance	409	706
Loans with a specific allowance, Related Allowance	98	310
Loans with a specific allowance, YTD Average Investment	390	686
Loans with a specific allowance, Interest Income Recognized	$ 1	$ 19

XML

FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS:
Interest rate swap	$ 4,684	$ 2,681
Cash flow hedges	1,185	580
Available for sale securities, estimated fair value	1,089,664	1,102,114
LIABILITIES:
Interest rate swap	4,684	2,681
Cash flow hedges	10,854	8,433
Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Interest rate swap
Cash flow hedges
Available for sale securities, estimated fair value
LIABILITIES:
Interest rate swap
Cash flow hedges
Significant Other Observable Inputs Level 2 [Member]
ASSETS:
Interest rate swap	4,684	2,681
Cash flow hedges	1,185	580
Available for sale securities, estimated fair value	1,089,664	1,102,114
LIABILITIES:
Interest rate swap	4,684	2,681
Cash flow hedges	10,854	8,433
Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Interest rate swap
Cash flow hedges
Available for sale securities, estimated fair value
LIABILITIES:
Interest rate swap
Cash flow hedges
Recurring [Member]
ASSETS:
Interest rate swap	4,684	2,681
Cash flow hedges	1,185	580
LIABILITIES:
Interest rate swap	4,684	2,681
Cash flow hedges	10,854	8,433
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Interest rate swap
Cash flow hedges
LIABILITIES:
Interest rate swap
Cash flow hedges
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member]
ASSETS:
Interest rate swap	4,684	2,681
Cash flow hedges	1,185	580
LIABILITIES:
Interest rate swap	4,684	2,681
Cash flow hedges	10,854	8,433
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Interest rate swap
Cash flow hedges
LIABILITIES:
Interest rate swap
Cash flow hedges
US Government Agencies Debt Securities [Member]
ASSETS:
Available for sale securities, estimated fair value	8,595	8,454
US Government Agencies Debt Securities [Member] | Recurring [Member]
ASSETS:
Available for sale securities, estimated fair value	8,595	8,454
US Government Agencies Debt Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Available for sale securities, estimated fair value
US Government Agencies Debt Securities [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member]
ASSETS:
Available for sale securities, estimated fair value	8,595	8,454
US Government Agencies Debt Securities [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Available for sale securities, estimated fair value
Obligations of States and Political Subdivisions [Member]
ASSETS:
Available for sale securities, estimated fair value	452,438	445,647
Obligations of States and Political Subdivisions [Member] | Recurring [Member]
ASSETS:
Available for sale securities, estimated fair value	452,438	445,647
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Available for sale securities, estimated fair value
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member]
ASSETS:
Available for sale securities, estimated fair value	452,438	445,647
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Available for sale securities, estimated fair value
Corporate and Other Securities [Member]
ASSETS:
Available for sale securities, estimated fair value	78,141	78,680
Corporate and Other Securities [Member] | Recurring [Member]
ASSETS:
Available for sale securities, estimated fair value	78,141	78,680
Corporate and Other Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Available for sale securities, estimated fair value
Corporate and Other Securities [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member]
ASSETS:
Available for sale securities, estimated fair value	78,141	78,680
Corporate and Other Securities [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Available for sale securities, estimated fair value
Mortgage Backed Securities [Member]
ASSETS:
Available for sale securities, estimated fair value	540,463	559,329
Mortgage Backed Securities [Member] | Recurring [Member]
ASSETS:
Available for sale securities, estimated fair value	540,463	559,329
Mortgage Backed Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Available for sale securities, estimated fair value
Mortgage Backed Securities [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member]
ASSETS:
Available for sale securities, estimated fair value	540,463	559,329
Mortgage Backed Securities [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Available for sale securities, estimated fair value
Other Securities [Member]
ASSETS:
Available for sale securities, estimated fair value	10,027	10,004
Other Securities [Member] | Recurring [Member]
ASSETS:
Available for sale securities, estimated fair value	10,027	10,004
Other Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Available for sale securities, estimated fair value
Other Securities [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member]
ASSETS:
Available for sale securities, estimated fair value	10,027	10,004
Other Securities [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Available for sale securities, estimated fair value
Best Effort Forward Delivery Commitments [Member]
LIABILITIES:
Liabilities	367
Best Effort Forward Delivery Commitments [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
LIABILITIES:
Liabilities
Best Effort Forward Delivery Commitments [Member] | Significant Other Observable Inputs Level 2 [Member]
LIABILITIES:
Liabilities
Best Effort Forward Delivery Commitments [Member] | Significant Unobservable Inputs Level 3 [Member]
LIABILITIES:
Liabilities	367
Best Effort Forward Delivery Commitments [Member] | Recurring [Member]
LIABILITIES:
Liabilities	367
Best Effort Forward Delivery Commitments [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
LIABILITIES:
Liabilities
Best Effort Forward Delivery Commitments [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
LIABILITIES:
Liabilities	367
Interest Rate Lock Commitments [Member]
ASSETS:
Derivative assets	1,271	513
Interest Rate Lock Commitments [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Derivative assets
Interest Rate Lock Commitments [Member] | Significant Other Observable Inputs Level 2 [Member]
ASSETS:
Derivative assets
Interest Rate Lock Commitments [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Derivative assets	1,271	513
Interest Rate Lock Commitments [Member] | Recurring [Member]
ASSETS:
Derivative assets	1,271	513
Interest Rate Lock Commitments [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS:
Derivative assets
Interest Rate Lock Commitments [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS:
Derivative assets	$ 1,271	$ 513

XML

INTANGIBLE ASSETS (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Jan. 01, 2014
Finite-Lived Intangible Assets [Line Items]
Intangible assets, amortization expense	$ 2,222	$ 2,616
Impairment charges	0
Core deposit intangibles, net	29,533	38,935	31,755
Goodwill	293,522		293,522
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, amortization expense	2,200	2,600	9,800
Core Deposits [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, amortization period	4 years
Core Deposits [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, amortization period	14 years
StellarOne Bank [Member]
Finite-Lived Intangible Assets [Line Items]
Core deposit intangibles, net				29,600
Goodwill				$ 234,100

XML

STOCK-BASED COMPENSATION (Summary of Nonvested Stock Activity) (Details) (Restricted Stock [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Restricted Stock [Member]
Summary of nonvested stock activity
Number of Shares, beginning balance	287,120
Weighted Average Grant-Date Fair Value, beginning balance	$ 20.07
Number of Shares, Granted	81,414
Weighted Average Grant-Date Fair Value, Granted	$ 22.01
Number of Shares, Net settle for taxes	(9,869)
Weighted Average Grant-Date Fair Value, Net settle for taxes	$ 21.58
Number of Shares, Vested	(30,401)
Weighted Average Grant-Date Fair Value, Vested	$ 16.03
Number of Shares, Forfeited	(4,419)
Weighted Average Grant-Date Fair Value, Forfeited	$ 19.68
Number of Shares, ending balance	323,845
Weighted Average Grant-Date Fair Value, ending balance	$ 21.20

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Aging of the Loan Portfolio by Class) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	$ 27,589	$ 29,297
60-89 Days Past Due	7,221	8,730
Greater Than 90 Days and still Accruing	7,932	10,047
Purchased Impaired (net of credit mark)	91,346	105,788	138,431
Nonaccrual	17,385	19,255
Current	5,236,282	5,172,879
Total loans	5,387,755	5,345,996	5,274,198
Commercial Construction [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	374	815
60-89 Days Past Due
Greater Than 90 Days and still Accruing
Purchased Impaired (net of credit mark)	3,090	3,782
Nonaccrual	1,953	968
Current	353,019	335,715
Total loans	358,436	341,280
Commercial Real Estate - Owner Occupied [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	1,606	621
60-89 Days Past Due	174	1,542
Greater Than 90 Days and still Accruing	1,357	1,683
Purchased Impaired (net of credit mark)	31,004	31,167
Nonaccrual	4,954	1,060
Current	859,127	839,370
Total loans	898,222	875,443
Commercial Real Estate - Non-Owner Occupied [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	1,344	3,984
60-89 Days Past Due	656	237
Greater Than 90 Days and still Accruing	328	91
Purchased Impaired (net of credit mark)	19,575	28,869
Nonaccrual	2,655	5,902
Current	1,494,032	1,470,076
Total loans	1,518,590	1,509,159
Raw Land and Lots [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	235	145
60-89 Days Past Due	58	44
Greater Than 90 Days and still Accruing	109	194
Purchased Impaired (net of credit mark)	6,055	7,427
Nonaccrual	1,059	2,359
Current	190,243	201,056
Total loans	197,759	211,225
Single Family Investment Real Estate [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	1,206	2,825
60-89 Days Past Due	158	338
Greater Than 90 Days and still Accruing	251	734
Purchased Impaired (net of credit mark)	16,299	16,879
Nonaccrual	1,302	2,070
Current	397,768	389,648
Total loans	416,984	412,494
Commercial and Industrial [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	1,453	1,250
60-89 Days Past Due	271	529
Greater Than 90 Days and still Accruing	468	549
Purchased Impaired (net of credit mark)	3,338	3,855
Nonaccrual	2,540	3,286
Current	418,420	384,307
Total loans	426,490	393,776
Other Commercial [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	281	42
60-89 Days Past Due	71	2
Greater Than 90 Days and still Accruing	65
Purchased Impaired (net of credit mark)	1,794	2,256
Nonaccrual	69	74
Current	78,136	78,732
Total loans	80,416	81,106
Mortgage [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	13,710	12,851
60-89 Days Past Due	1,862	4,300
Greater Than 90 Days and still Accruing	3,313	4,095
Purchased Impaired (net of credit mark)	6,381	7,394
Nonaccrual	2,397	2,485
Current	439,141	447,026
Total loans	466,804	478,151
Consumer Construction [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	717	120
60-89 Days Past Due	700
Greater Than 90 Days and still Accruing	469	844
Purchased Impaired (net of credit mark)	504	516
Nonaccrual
Current	63,508	72,688
Total loans	65,898	74,168
Indirect Auto [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	1,345	1,593
60-89 Days Past Due	181	263
Greater Than 90 Days and still Accruing	272	317
Purchased Impaired (net of credit mark)
Nonaccrual
Current	201,571	197,238
Total loans	203,369	199,411
Indirect Marine [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	52	150
60-89 Days Past Due
Greater Than 90 Days and still Accruing
Purchased Impaired (net of credit mark)
Nonaccrual	48	201
Current	43,543	42,839
Total loans	43,643	43,190
HELOCs [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	3,014	3,082
60-89 Days Past Due	1,119	955
Greater Than 90 Days and still Accruing	685	820
Purchased Impaired (net of credit mark)	1,889	2,000
Nonaccrual	205	258
Current	484,204	493,464
Total loans	491,116	500,579
Credit Card [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	114	232
60-89 Days Past Due	64	108
Greater Than 90 Days and still Accruing	265	219
Purchased Impaired (net of credit mark)
Nonaccrual
Current	24,248	23,666
Total loans	24,691	24,225
Other Consumer [Member]
Summary of aging of the loan portfolio, by class
30-59 Days Past Due	2,138	1,587
60-89 Days Past Due	1,907	412
Greater Than 90 Days and still Accruing	350	501
Purchased Impaired (net of credit mark)	1,417	1,643
Nonaccrual	203	592
Current	189,322	197,054
Total loans	$ 195,337	$ 201,789

XML

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2015

FAIR VALUE MEASUREMENTS [Abstract]

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

The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 (dollars in thousands):

	Fair Value Measurements at March 31, 2015 using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Securities available for sale:
U.S. government and agency securities	$	-	$	8,595	$	-	$	8,595
Obligations of states and political subdivisions		-		452,438		-		452,438
Corporate bonds		-		78,141		-		78,141
Mortgage-backed securities		-		540,463		-		540,463
Other securities		-		10,027		-		10,027
Derivatives:
Interest rate swap		-		4,684		-		4,684
Cash flow hedges		-		1,185		-		1,185
Interest rate lock commitments		-		-		1,271		1,271
LIABILITIES
Derivatives:
Interest rate swap	$	-	$	4,684	$	-	$	4,684
Cash flow hedges		-		10,854		-		10,854
Best effort forward delivery commitments		-		-		367		367

		Fair Value Measurements at December 31, 2014 using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Securities available for sale:
U.S. government and agency securities	$	-	$	8,454	$	-	$	8,454
Obligations of states and political subdivisions		-		445,647		-		445,647
Corporate bonds		-		78,680		-		78,680
Mortgage-backed securities		-		559,329		-		559,329
Other securities		-		10,004		-		10,004
Derivatives:
Interest rate swap		-		2,681		-		2,681
Cash flow hedges		-		580		-		580
Interest rate lock commitments		-		-		513		513
LIABILITIES
Derivatives:
Interest rate swap	$	-	$	2,681	$	-	$	2,681
Cash flow hedges		-		8,433		-		8,433

Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis

The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at March 31, 2015 and December 31, 2014 (dollars in thousands):

		Fair Value Measurements at March 31, 2015 using
	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1			Level 2		Level 3		Balance
ASSETS
Loans held for sale	$		-	$	46,048	$	-	$	46,048
Impaired loans			-		-		12,621		12,621
Other real estate owned			-		-		25,434		25,434

		Fair Value Measurements at December 31, 2014 using
	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1			Level 2		Level 3		Balance
ASSETS
Loans held for sale	$		-	$	42,519	$	-	$	42,519
Impaired loans			-		-		15,797		15,797
Other real estate owned			-		-		28,118		28,118

Summary of Quantitative Information About Level 3 Fair Value Measurements

The following table displays quantitative information about Level 3 Fair Value Measurements at March 31, 2015 (dollars in thousands):

	Fair Value Measurements at March 31, 2015
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Real Estate - Owner Occupied	$	4,524	Market comparables	Discount applied to market comparables (1)	37%
Commercial Real Estate - Non-Owner Occupied		3,860	Market comparables	Discount applied to market comparables (1)	0%
Single Family Investment Real Estate		1,220	Market comparables	Discount applied to market comparables (1)	5%
Commercial and Industrial		2,011	Market comparables	Discount applied to market comparables (1)	11%
Other (2)		1,006	Market comparables	Discount applied to market comparables (1)	5%
Total Impaired Loans		12,621
Other real estate owned		25,434	Market comparables	Discount applied to market comparables (1)	31%
Total	$	38,055
(1)  A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.
(2)  The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.

The following table displays quantitative information about Level 3 Fair Value Measurements at December 31, 2014 (dollars in thousands):

	Fair Value Measurements at December 31, 2014
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Real Estate - Owner Occupied	$	3,304	Market comparables	Discount applied to market comparables (1)	34%
Commercial Real Estate - Non-Owner Occupied		7,828	Market comparables	Discount applied to market comparables (1)	1%
Raw Land and Lots		431	Market comparables	Discount applied to market comparables (1)	16%
Single Family Investment Real Estate		1,366	Market comparables	Discount applied to market comparables (1)	14%
Commercial and Industrial		339	Market comparables	Discount applied to market comparables (1)	45%
Other (2)		2,529	Market comparables	Discount applied to market comparables (1)	6%
Total Impaired Loans		15,797
Other real estate owned		28,118	Market comparables	Discount applied to market comparables (1)	32%
Total	$	43,915
(1)A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.
(2)The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.

Carrying Values and Estimated Fair Values of the Company's Financial Instruments

The carrying values and estimated fair values of the Company’s financial instruments at March 31, 2015 and December 31, 2014 are as follows (dollars in thousands):

							Fair Value Measurements at March 31, 2015 using
						Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
			Carrying Value			Level 1			Level 2		Level 3		Balance
ASSETS
Cash and cash equivalents			$	137,362		$		137,362	$	-	$	-	$	137,362
Securities available for sale				1,089,664				-		1,089,664		-		1,089,664
Restricted stock				53,146				-		53,146		-		53,146
Loans held for sale				46,048				-		46,048		-		46,048
Net loans				5,356,778				-		-		5,381,792		5,381,792
Derivatives:
Interest rate lock commitments				1,271				-		-		1,271		1,271
Interest rate swap				4,684				-		4,684		-		4,684
Cash flow hedges				1,185				-		1,185		-		1,185
Accrued interest receivable				22,313				-		22,313		-		22,313
Bank owned life insurance				140,143				-		140,143		-		140,143
LIABILITIES
Deposits	$				5,670,228	$		-	$	5,669,754	$	-	$	5,669,754
Borrowings		674,348						-		653,782		-		653,782
Accrued interest payable		1,818						-		1,818		-		1,818
Derivatives:
Best effort forward delivery commitments		367						-		-		367		367
Interest rate swap		4,684						-		4,684		-		4,684
Cash flow hedges		10,854						-		10,854		-		10,854

			Fair Value Measurements at December 31, 2014 using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Balance
ASSETS
Cash and cash equivalents	$	133,260	$	133,260	$	-	$	-	$	133,260
Securities available for sale		1,102,114		-		1,102,114		-		1,102,114
Restricted stock		54,854		-		54,854		-		54,854
Loans held for sale		42,519		-		42,519		-		42,519
Net loans		5,313,612		-		-		5,340,759		5,340,759
Derivatives:
Interest rate lock commitments		513		-		-		513		513
Interest rate swap		2,681		-		2,681		-		2,681
Cash flow hedges		580		-		580		-		580
Accrued interest receivable		21,775		-		21,775		-		21,775
Bank owned life insurance		139,005		-		139,005		-		139,005
LIABILITIES
Deposits	$	5,638,770	$	-	$	5,637,929	$	-	$	5,637,929
Borrowings		686,935		-		666,224		-		666,224
Accrued interest payable		1,899		-		1,899		-		1,899
Derivatives:
Interest rate swap		2,681		-		2,681		-		2,681
Cash flow hedges		8,433		-		8,433		-		8,433

XML

STOCK-BASED COMPENSATION (Estimated Unamortized Compensation Expense Recognized in Future) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Estimated unamortized compensation expense recognized in future
For the remainder of the current year	$ 1,430
For year ending December 31, 2016	1,716
For year ending December 31, 2017	914
For year ending December 31, 2018	495
For year ending December 31, 2019	70
Total	4,625
Stock Options [Member]
Estimated unamortized compensation expense recognized in future
For the remainder of the current year	155
For year ending December 31, 2016	130
For year ending December 31, 2017	15
Total	300
Restricted Stock [Member]
Estimated unamortized compensation expense recognized in future
For the remainder of the current year	1,275
For year ending December 31, 2016	1,586
For year ending December 31, 2017	899
For year ending December 31, 2018	495
For year ending December 31, 2019	70
Total	$ 4,325

XML

FAIR VALUE MEASUREMENTS (Carrying Values and Estimated Fair Values of the Company's Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 137,362	$ 133,260
Securities available for sale, at fair value	1,089,664	1,102,114
Restricted stock	53,146	54,854
Loans held for sale	46,048	42,519
Net loans	5,381,792	5,340,759
Interest rate swap	4,684	2,681
Cash flow hedges	1,185	580
Accrued interest receivable	22,313	21,775
Bank owned life insurance	140,143	139,005
LIABILITIES
Deposits	5,669,754	5,637,929
Borrowings	653,782	666,224
Accrued interest payable	1,818	1,899
Interest rate swap	4,684	2,681
Cash flow hedges	10,854	8,433
Carrying Value [Member]
ASSETS
Cash and cash equivalents	137,362	133,260
Securities available for sale, at fair value	1,089,664	1,102,114
Restricted stock	53,146	54,854
Loans held for sale	46,048	42,519
Net loans	5,356,778	5,313,612
Interest rate swap	4,684	2,681
Cash flow hedges	1,185	580
Accrued interest receivable	22,313	21,775
Bank owned life insurance	140,143	139,005
LIABILITIES
Deposits	5,670,228	5,638,770
Borrowings	674,348	686,935
Accrued interest payable	1,818	1,899
Interest rate swap	4,684	2,681
Cash flow hedges	10,854	8,433
Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS
Cash and cash equivalents	137,362	133,260
Securities available for sale, at fair value
Restricted stock
Loans held for sale
Net loans
Interest rate swap
Cash flow hedges
Accrued interest receivable
Bank owned life insurance
LIABILITIES
Deposits
Borrowings
Accrued interest payable
Interest rate swap
Cash flow hedges
Significant Other Observable Inputs Level 2 [Member]
ASSETS
Cash and cash equivalents
Securities available for sale, at fair value	1,089,664	1,102,114
Restricted stock	53,146	54,854
Loans held for sale	46,048	42,519
Net loans
Interest rate swap	4,684	2,681
Cash flow hedges	1,185	580
Accrued interest receivable	22,313	21,775
Bank owned life insurance	140,143	139,005
LIABILITIES
Deposits	5,669,754	5,637,929
Borrowings	653,782	666,224
Accrued interest payable	1,818	1,899
Interest rate swap	4,684	2,681
Cash flow hedges	10,854	8,433
Significant Unobservable Inputs Level 3 [Member]
ASSETS
Cash and cash equivalents
Securities available for sale, at fair value
Restricted stock
Loans held for sale
Net loans	5,381,792	5,340,759
Interest rate swap
Cash flow hedges
Accrued interest receivable
Bank owned life insurance
LIABILITIES
Deposits
Borrowings
Accrued interest payable
Interest rate swap
Cash flow hedges
Interest Rate Lock Commitments [Member]
ASSETS
Derivative assets	1,271	513
Interest Rate Lock Commitments [Member] | Carrying Value [Member]
ASSETS
Derivative assets	1,271	513
Interest Rate Lock Commitments [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
ASSETS
Derivative assets
Interest Rate Lock Commitments [Member] | Significant Other Observable Inputs Level 2 [Member]
ASSETS
Derivative assets
Interest Rate Lock Commitments [Member] | Significant Unobservable Inputs Level 3 [Member]
ASSETS
Derivative assets	1,271	513
Best Effort Forward Delivery Commitments [Member]
LIABILITIES
Liabilities	367
Best Effort Forward Delivery Commitments [Member] | Carrying Value [Member]
LIABILITIES
Liabilities	367
Best Effort Forward Delivery Commitments [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
LIABILITIES
Liabilities
Best Effort Forward Delivery Commitments [Member] | Significant Other Observable Inputs Level 2 [Member]
LIABILITIES
Liabilities
Best Effort Forward Delivery Commitments [Member] | Significant Unobservable Inputs Level 3 [Member]
LIABILITIES
Liabilities	$ 367

XML

INTANGIBLE ASSETS (Estimated Remaining Amortization Expense of Core Deposit Intangibles) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Estimated remaining amortization expense of core deposit intangibles
For the remainder of the current year	$ 6,221
For the year ending December 31, 2016	6,932
For the year ending December 31, 2017	5,590
For the year ending December 31, 2018	4,144
For the year ending December 31, 2019	3,093
For the year ending December 31, 2020	2,028
Thereafter	1,525
Net Carrying Value/Total estimated amortization expense	$ 29,533	$ 31,755	$ 38,935

XML

STOCK-BASED COMPENSATION (Summary of Stock Option Activity) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Summary of stock option activity
Number of Stock Options, Outstanding beginning balance	389,269
Weighted Average Exercise Price, Outstanding beginning balance	$ 16.69
Number of Stock Options, Exercised	(7,686)
Weighted Average Exercise Price, Exercised	$ 17.72
Number of Stock Options, Forfeited	(13,188)
Weighted Average Exercise Price, Forfeited	$ 23.45
Number of Stock Options, Outstanding ending balance	368,395
Weighted Average Exercise Price, Outstanding ending balance	$ 16.42
Number of Stock Options, Exercisable	263,890
Weighted Average Exercise Price, Options exercisable	$ 17.47

XML

EARNINGS PER SHARE (Reconcilement of the Denominators of the Basic and Diluted EPS Computations) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Reconcilement of the denominators of the basic and diluted EPS computations
Basic EPS, Net Income Available to Common Stockholders (Numerator)	$ 15,701	$ 7,708
Basic EPS, Weighted Average Shares (Denominator)	45,106,000	46,977,000
Basic EPS, Per Share Amount	$ 0.35	$ 0.16
Effect of dilutive stock awards, Weighted Average Shares (Denominator)	82,000	103,000
Diluted EPS, Net Income Available to Common Stockholders (Numerator)	$ 15,701	$ 7,708
Diluted EPS, Weighted Average Common Shares	45,187,516	47,080,661
Diluted EPS, Per Share Amount	$ 0.35	$ 0.16

XML

STOCK-BASED COMPENSATION (Summary of Information Concerning Stock Options) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Summary of information concerning stock options
Stock Options Vested or Expected to Vest, Stock options	368,361
Stock options, Exercisable	263,890
Stock Options Vested or Expected to Vest, Weighted average remaining contractual life in years	5 years 29 days
Weighted average remaining contractual life in years, Exercisable	4 years 7 months 13 days
Stock Options Vested or Expected to Vest, Weighted average exercise price on shares above water	$ 14.36
Weighted average exercise price on shares above water, Exercisable	$ 14.63
Stock Options Vested or Expected to Vest, Aggregate intrinsic value	$ 2,471,164
Aggregate intrinsic value, Exercisable	$ 1,594,675

XML

FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of financial assets measured at fair value on nonrecurring basis
Loans held for sale	$ 46,048	$ 42,519
Other real estate owned	25,434	28,118
Fair Value, Measurements, Nonrecurring [Member]
Schedule of financial assets measured at fair value on nonrecurring basis
Loans held for sale	46,048	42,519
Impaired loans	12,621	15,797
Other real estate owned	25,434	28,118
Quoted Prices in Active Markets for Identical Assets Level 1 [Member]
Schedule of financial assets measured at fair value on nonrecurring basis
Loans held for sale
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Schedule of financial assets measured at fair value on nonrecurring basis
Loans held for sale
Impaired loans
Other real estate owned
Significant Other Observable Inputs Level 2 [Member]
Schedule of financial assets measured at fair value on nonrecurring basis
Loans held for sale	46,048	42,519
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Schedule of financial assets measured at fair value on nonrecurring basis
Loans held for sale	46,048	42,519
Impaired loans
Other real estate owned
Significant Unobservable Inputs Level 3 [Member]
Schedule of financial assets measured at fair value on nonrecurring basis
Loans held for sale
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Schedule of financial assets measured at fair value on nonrecurring basis
Loans held for sale
Impaired loans	12,621	15,797
Other real estate owned	$ 25,434	$ 28,118

XML

ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2015

ACQUISITIONS [Abstract]

Schedule of Effect of Amortization and Accretion Related to Acquisition

The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the three months ended March 31, 2015 and 2014 (dollars in thousands):

	For the Three Months Ended March 31,
	2015		2014
Loans	$	639	$	(546)
Core deposit intangible		(2,222)		(2,616)
Borrowings		137		75
Time deposits		1,075		2,920
Net impact to income before taxes	$	(371)	$	(167)

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of TDR by Class and Modification Type) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 loan	Mar. 31, 2014 loan
Financing Receivable, Modifications [Line Items]
No. of Loans	1	4
Recorded investment at period end	$ 19	$ 3,141
Troubled Debt Restructuring Term Modification at Market Rate [Member]
Financing Receivable, Modifications [Line Items]
No. of Loans	1	4
Recorded investment at period end	19	3,141
Troubled Debt Restructuring Term Modification at Market Rate [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Modifications [Line Items]
No. of Loans		1
Recorded investment at period end		2,732
Troubled Debt Restructuring Term Modification at Market Rate [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Modifications [Line Items]
No. of Loans		1
Recorded investment at period end		113
Troubled Debt Restructuring Term Modification at Market Rate [Member] | Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
No. of Loans	1
Recorded investment at period end	19
Troubled Debt Restructuring Term Modification at Market Rate [Member] | Other Commercial [Member]
Financing Receivable, Modifications [Line Items]
No. of Loans		2
Recorded investment at period end		$ 296

XML

SECURITIES (Schedule of Gross Unrealized Losses and Fair Value of Investments) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Schedule of gross unrealized losses and fair value of investments
Less than 12 months, Fair value	$ 78,074	$ 124,731
Less than 12 months, Unrealized Losses	(573)	(724)
More than 12 Months, Fair value	69,021	96,404
More than 12 Months, Unrealized Losses	(820)	(1,134)
Fair value, Total	147,095	221,135
Unrealized Losses, Total	(1,393)	(1,858)
US Government Agencies Debt Securities [Member]
Schedule of gross unrealized losses and fair value of investments
Less than 12 months, Fair value		7,055
Less than 12 months, Unrealized Losses		(25)
Fair value, Total		7,055
Unrealized Losses, Total		(25)
Obligations of States and Political Subdivisions [Member]
Schedule of gross unrealized losses and fair value of investments
Less than 12 months, Fair value	18,293	13,602
Less than 12 months, Unrealized Losses	(265)	(93)
More than 12 Months, Fair value	12,469	42,514
More than 12 Months, Unrealized Losses	(246)	(628)
Fair value, Total	30,762	56,116
Unrealized Losses, Total	(511)	(721)
Mortgage Backed Securities [Member]
Schedule of gross unrealized losses and fair value of investments
Less than 12 months, Fair value	41,164	60,151
Less than 12 months, Unrealized Losses	(130)	(362)
More than 12 Months, Fair value	37,794	49,581
More than 12 Months, Unrealized Losses	(324)	(436)
Fair value, Total	78,958	109,732
Unrealized Losses, Total	(454)	(798)
Corporate Bonds and Other Securities [Member]
Schedule of gross unrealized losses and fair value of investments
Less than 12 months, Fair value	18,617	43,923
Less than 12 months, Unrealized Losses	(178)	(244)
More than 12 Months, Fair value	18,758	4,309
More than 12 Months, Unrealized Losses	(250)	(70)
Fair value, Total	37,375	48,232
Unrealized Losses, Total	$ (428)	$ (314)

XML

STOCK-BASED COMPENSATION (Summary of Shares Available in Each Plan) (Details) (2011 Plan [Member])	3 Months Ended
	Mar. 31, 2015
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Authorization	1,000,000
Granted	(600,641)
Remaining available for grant	399,359

XML

ACCOUNTING POLICIES (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
ACCOUNTING POLICIES [Abstract]
Investments, recognized amortization	$ 175,000
Investments, tax credits	257,000
Carrying value of investments in qualified housing project investments	9,800,000	10,400,000
Unfunded commitment liability	$ 5,100,000

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Excluding Purchased Impaired Loans) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	$ 5,387,755	$ 5,345,996	$ 5,274,198
Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	358,436	341,280
Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	898,222	875,443
Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	1,518,590	1,509,159
Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	197,759	211,225
Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	416,984	412,494
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	426,490	393,776
Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	80,416	81,106
Excluding Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	3,815,742	3,730,248
Excluding Purchased Impaired [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	355,346	337,498
Excluding Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	867,218	844,276
Excluding Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	1,499,015	1,480,290
Excluding Purchased Impaired [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	191,704	203,798
Excluding Purchased Impaired [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	400,685	395,615
Excluding Purchased Impaired [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	423,152	389,921
Excluding Purchased Impaired [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	78,622	78,850
Excluding Purchased Impaired [Member] | 1-3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	854,880	805,908
Excluding Purchased Impaired [Member] | 1-3 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	32,325	22,512
Excluding Purchased Impaired [Member] | 1-3 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	185,029	185,789
Excluding Purchased Impaired [Member] | 1-3 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	368,352	356,263
Excluding Purchased Impaired [Member] | 1-3 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	9,550	11,162
Excluding Purchased Impaired [Member] | 1-3 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	62,254	59,638
Excluding Purchased Impaired [Member] | 1-3 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	165,924	138,973
Excluding Purchased Impaired [Member] | 1-3 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	31,446	31,571
Excluding Purchased Impaired [Member] | 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	2,719,393	2,662,344
Excluding Purchased Impaired [Member] | 4 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	295,831	289,064
Excluding Purchased Impaired [Member] | 4 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	644,950	620,587
Excluding Purchased Impaired [Member] | 4 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	1,059,097	1,041,515
Excluding Purchased Impaired [Member] | 4 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	126,001	128,281
Excluding Purchased Impaired [Member] | 4 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	316,576	311,900
Excluding Purchased Impaired [Member] | 4 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	236,174	230,084
Excluding Purchased Impaired [Member] | 4 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	40,764	40,913
Excluding Purchased Impaired [Member] | 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	80,919	89,056
Excluding Purchased Impaired [Member] | 5 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	12,537	11,932
Excluding Purchased Impaired [Member] | 5 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	12,608	15,003
Excluding Purchased Impaired [Member] | 5 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	21,457	22,358
Excluding Purchased Impaired [Member] | 5 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	11,870	16,803
Excluding Purchased Impaired [Member] | 5 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	8,693	9,750
Excluding Purchased Impaired [Member] | 5 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	10,375	9,392
Excluding Purchased Impaired [Member] | 5 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	3,379	3,818
Excluding Purchased Impaired [Member] | 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	65,704	63,672
Excluding Purchased Impaired [Member] | 6 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	10,730	10,906
Excluding Purchased Impaired [Member] | 6 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	6,289	7,688
Excluding Purchased Impaired [Member] | 6 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	31,916	28,388
Excluding Purchased Impaired [Member] | 6 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	4,577	4,783
Excluding Purchased Impaired [Member] | 6 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	6,311	6,680
Excluding Purchased Impaired [Member] | 6 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	4,133	4,383
Excluding Purchased Impaired [Member] | 6 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	1,748	844
Excluding Purchased Impaired [Member] | 7 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	94,835	109,268
Excluding Purchased Impaired [Member] | 7 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	3,923	3,084
Excluding Purchased Impaired [Member] | 7 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	18,342	15,209
Excluding Purchased Impaired [Member] | 7 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	18,193	31,766
Excluding Purchased Impaired [Member] | 7 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	39,706	42,769
Excluding Purchased Impaired [Member] | 7 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	6,851	7,647
Excluding Purchased Impaired [Member] | 7 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	6,535	7,089
Excluding Purchased Impaired [Member] | 7 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	1,285	1,704
Excluding Purchased Impaired [Member] | 8 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	11
Excluding Purchased Impaired [Member] | 8 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating
Excluding Purchased Impaired [Member] | 8 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating
Excluding Purchased Impaired [Member] | 8 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating
Excluding Purchased Impaired [Member] | 8 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating
Excluding Purchased Impaired [Member] | 8 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating
Excluding Purchased Impaired [Member] | 8 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating	11
Excluding Purchased Impaired [Member] | 8 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivables related risk rating

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]
Reclassifications of unrealized gains (losses) on AFS	$ 193,000	$ 29,000
Tax expense (benefit) related to (gains) losses on the sale of securities	68,000	10,000
Reclassification of unrealized gains (losses) on cash flow hedges	(418,000)	(72,000)
Tax expense (benefit) related to (gains) losses on the cash flow hedges	$ (146,000)	$ (25,000)

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BORROWINGS (Advances from the FHLB) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Advances from the FHLB
Advance Amount	$ 210,000	$ 210,000
Adjustable Rate Credit One [Member]
Advances from the FHLB
Interest Rate	0.71%	0.70%
Maturity Date	Aug. 23, 2022	Aug. 23, 2022
Advance Amount	55,000	55,000
Adjustable Rate Credit Two [Member]
Advances from the FHLB
Interest Rate	0.72%	0.71%
Maturity Date	Nov. 23, 2022	Nov. 23, 2022
Advance Amount	65,000	65,000
Adjustable Rate Credit Three [Member]
Advances from the FHLB
Interest Rate	0.72%	0.71%
Maturity Date	Nov. 23, 2022	Nov. 23, 2022
Advance Amount	10,000	10,000
Adjustable Rate Credit Four [Member]
Advances from the FHLB
Interest Rate	0.72%	0.71%
Maturity Date	Nov. 23, 2022	Nov. 23, 2022
Advance Amount	10,000	10,000
Fixed Rate One [Member]
Advances from the FHLB
Interest Rate	3.62%	3.62%
Maturity Date	Nov. 28, 2017	Nov. 28, 2017
Advance Amount	10,000	10,000
Fixed Rate Two [Member]
Advances from the FHLB
Interest Rate	3.44%	3.44%
Maturity Date	Jul. 28, 2015	Jul. 28, 2015
Advance Amount	10,000	10,000
Fixed Rate Three [Member]
Advances from the FHLB
Interest Rate	3.75%	3.75%
Maturity Date	Jul. 30, 2018	Jul. 30, 2018
Advance Amount	5,000	5,000
Fixed Rate Four [Member]
Advances from the FHLB
Interest Rate	3.97%	3.97%
Maturity Date	Jul. 30, 2018	Jul. 30, 2018
Advance Amount	5,000	5,000
Fixed Rate Hybrid One [Member]
Advances from the FHLB
Interest Rate	2.11%	2.11%
Maturity Date	Oct. 05, 2016	Oct. 05, 2016
Advance Amount	25,000	25,000
Fixed Rate Hybrid Two [Member]
Advances from the FHLB
Interest Rate	0.91%	0.91%
Maturity Date	Jul. 25, 2016	Jul. 25, 2016
Advance Amount	$ 15,000	$ 15,000
LIBOR [Member] | Adjustable Rate Credit One [Member]
Advances from the FHLB
Spread on 3-Month LIBOR	0.44%	0.44%
LIBOR [Member] | Adjustable Rate Credit Two [Member]
Advances from the FHLB
Spread on 3-Month LIBOR	0.45%	0.45%
LIBOR [Member] | Adjustable Rate Credit Three [Member]
Advances from the FHLB
Spread on 3-Month LIBOR	0.45%	0.45%
LIBOR [Member] | Adjustable Rate Credit Four [Member]
Advances from the FHLB
Spread on 3-Month LIBOR	0.45%	0.45%

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LOANS AND ALLOWANCE FOR LOAN LOSSES (Purchased Impaired Commercial and Consumer Loan Portfolios by Class) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	$ 5,236,282	$ 5,172,879
Fair value of loans acquired with a deterioration of credit quality	91,346	105,788	138,431
Commercial Construction [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	353,019	335,715
Fair value of loans acquired with a deterioration of credit quality	3,090	3,782
Commercial Real Estate - Owner Occupied [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	859,127	839,370
Fair value of loans acquired with a deterioration of credit quality	31,004	31,167
Commercial Real Estate - Non-Owner Occupied [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	1,494,032	1,470,076
Fair value of loans acquired with a deterioration of credit quality	19,575	28,869
Raw Land and Lots [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	190,243	201,056
Fair value of loans acquired with a deterioration of credit quality	6,055	7,427
Single Family Investment Real Estate [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	397,768	389,648
Fair value of loans acquired with a deterioration of credit quality	16,299	16,879
Commercial and Industrial [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	418,420	384,307
Fair value of loans acquired with a deterioration of credit quality	3,338	3,855
Other Commercial [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	78,136	78,732
Fair value of loans acquired with a deterioration of credit quality	1,794	2,256
Indirect Auto [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	201,571	197,238
Fair value of loans acquired with a deterioration of credit quality
Mortgage [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	439,141	447,026
Fair value of loans acquired with a deterioration of credit quality	6,381	7,394
Consumer Construction [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	63,508	72,688
Fair value of loans acquired with a deterioration of credit quality	504	516
HELOCs [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	484,204	493,464
Fair value of loans acquired with a deterioration of credit quality	1,889	2,000
Other Consumer [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
Current	189,322	197,054
Fair value of loans acquired with a deterioration of credit quality	1,417	1,643
Receivables Acquired with Deteriorated Credit Quality [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	5,616	6,181
Greater than 90 Days	8,461	10,013
Current	77,269	89,594
Fair value of loans acquired with a deterioration of credit quality	91,346	105,788
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Construction [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due
Greater than 90 Days	599	652
Current	2,491	3,130
Fair value of loans acquired with a deterioration of credit quality	3,090	3,782
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate - Owner Occupied [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	1,357	1,138
Greater than 90 Days	1,966	843
Current	27,681	29,186
Fair value of loans acquired with a deterioration of credit quality	31,004	31,167
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	747	523
Greater than 90 Days	321	1,255
Current	18,507	27,091
Fair value of loans acquired with a deterioration of credit quality	19,575	28,869
Receivables Acquired with Deteriorated Credit Quality [Member] | Raw Land and Lots [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	155	522
Greater than 90 Days	259
Current	5,641	6,905
Fair value of loans acquired with a deterioration of credit quality	6,055	7,427
Receivables Acquired with Deteriorated Credit Quality [Member] | Single Family Investment Real Estate [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	1,721	1,327
Greater than 90 Days	697	1,311
Current	13,881	14,241
Fair value of loans acquired with a deterioration of credit quality	16,299	16,879
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial and Industrial [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	214	144
Greater than 90 Days	174	538
Current	2,950	3,173
Fair value of loans acquired with a deterioration of credit quality	3,338	3,855
Receivables Acquired with Deteriorated Credit Quality [Member] | Other Commercial [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	66	107
Greater than 90 Days	803	1,133
Current	925	1,016
Fair value of loans acquired with a deterioration of credit quality	1,794	2,256
Receivables Acquired with Deteriorated Credit Quality [Member] | Mortgage [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	1,123	1,975
Greater than 90 Days	2,574	2,866
Current	2,684	2,553
Fair value of loans acquired with a deterioration of credit quality	6,381	7,394
Receivables Acquired with Deteriorated Credit Quality [Member] | Consumer Construction [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due
Greater than 90 Days	504	516
Current
Fair value of loans acquired with a deterioration of credit quality	504	516
Receivables Acquired with Deteriorated Credit Quality [Member] | HELOCs [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	146	356
Greater than 90 Days	527	728
Current	1,216	916
Fair value of loans acquired with a deterioration of credit quality	1,889	2,000
Receivables Acquired with Deteriorated Credit Quality [Member] | Other Consumer [Member]
Schedule of purchased impaired commercial and consumer loan portfolios, by class
30-89 Days Past Due	87	89
Greater than 90 Days	37	171
Current	1,293	1,383
Fair value of loans acquired with a deterioration of credit quality	$ 1,417	$ 1,643

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities:
Net income	$ 15,701	$ 7,708
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation of bank premises and equipment	2,705	2,670
Writedown of OREO	590	256
Amortization, net	3,625	3,465
Amortization/(Accretion) related to acquisition, net	371	167
Provision for loan losses	1,750
Gains on securities transactions, net	(193)	(29)
Decrease in loans held for sale, net	(3,529)	15,809
Gains on sales of other real estate owned, net	(38)	(23)
(Gains) losses on sales of bank premises, net	57	233
Stock-based compensation expenses	390	374
Issuance of common stock grants for services	100
Net decrease in other assets	(1,031)	23,978
Net increase in other liabilities	80	(3,542)
Net cash and cash equivalents provided by operating activities	20,578	51,066
Investing activities:
Purchases of securities available for sale	(29,863)	(241,144)
Proceeds from sales of securities available for sale	12,499	259,077
Proceeds from maturities, calls and paydowns of securities available for sale	34,133	31,851
Net (increase) decrease in loans	(44,401)	3,292
Net increase in bank premises and equipment	(2,346)	(2,221)
Proceeds from sales of other real estate owned	2,714	3,800
Improvements to other real estate owned	(56)
Cash paid for equity-method investments	(355)
Cash acquired in bank acquisitions		49,989
Net cash and cash equivalents provided by (used in) investing activities	(27,675)	104,644
Financing activities:
Net increase (decrease) in noninterest-bearing deposits	75,557	(85,051)
Net (decrease) increase in interest-bearing deposits	(43,024)	57,387
Net decrease in short-term borrowings	(12,959)	(38,901)
Net increase in long-term borrowings	509	436
Cash dividends paid - common stock	(6,431)	(6,332)
Repurchase of common stock	(2,387)	(12,965)
Issuance of common stock	147	458
Taxes paid related to net share settlement of equity awards	(213)	(1,515)
Net cash and cash equivalents used in financing activities	11,199	(86,483)
Increase in cash and cash equivalents	4,102	69,227
Cash and cash equivalents at beginning of the period	133,260	73,023
Cash and cash equivalents at end of the period	137,362	142,250
Cash payments for:
Interest	6,925	6,212
Income taxes	3,000	5,800
Supplemental schedule of noncash investing and financing activities
Unrealized gain on securities available for sale	5,627	9,683
Changes in fair value of interest rate swap loss	(1,218)	622
Transfers between loans to other real estate owned	124	1,085
Transfers from bank premises to other real estate owned	402
Issuance of common stock in exchange for net assets in acquisition		549,523
Transactions related to bank and branch acquisitions
Assets acquired		2,957,521
Liabilities assumed		$ 2,642,120

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BORROWINGS (Contractual Maturities of Long-Term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Contractual maturities of long-term debt
Remainder of the current year	$ 8,716
2016	55,889
2017	8,248
2018	7,887
2019	(2,304)
2020	(2,375)
Thereafter	223,853
Total long-term Borrowings	299,914	299,542
Trust Preferred Capital Notes [Member]
Contractual maturities of long-term debt
Thereafter	93,301
Total long-term Borrowings	93,301
Subordinated Debt [Member]
Contractual maturities of long-term debt
Remainder of the current year
2016	17,500
2017
2018
2019
2020
Thereafter
Total long-term Borrowings	17,500
Federal Home Loan Bank Advances [Member]
Contractual maturities of long-term debt
Remainder of the current year	10,000
2016	40,000
2017	10,000
2018	10,000
2019
2020
Thereafter	140,000
Total long-term Borrowings	210,000
Fair Value Premium (Discount) [Member]
Contractual maturities of long-term debt
Remainder of the current year	100
2016	271
2017	170
2018	(143)
2019	(286)
2020	(301)
Thereafter	(5,622)
Total long-term Borrowings	(5,811)
Prepayment Penalty [Member]
Contractual maturities of long-term debt
Remainder of the current year	(1,384)
2016	(1,882)
2017	(1,922)
2018	(1,970)
2019	(2,018)
2020	(2,074)
Thereafter	(3,826)
Total long-term Borrowings	$ (15,076)

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SECURITIES (Schedule of Amortized Cost and Estimated Fair Value of Securities) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of amortized cost and estimated fair value of securities
Due in one year or less, Amortized Cost	$ 20,599	$ 19,345
Due in one year or less, Estimated Fair Value	20,763	19,434
Due after one year through five years, Amortized Cost	49,747	41,545
Due after one year through five years, Estimated Fair Value	51,522	43,070
Due after five years through ten years, Amortized Cost	295,577	306,900
Due after five years through ten years, Estimated Fair Value	304,936	314,044
Due after ten years, Amortized Cost	691,236	707,445
Due after ten years, Estimated Fair Value	712,443	725,566
Total securities available for sale, Amortized Cost	1,057,159	1,075,235
Total securities available for sale, Estimated Fair Value	$ 1,089,664	$ 1,102,114

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BORROWINGS (Tables)

3 Months Ended

Mar. 31, 2015

BORROWINGS [Abstract]

Short-Term Borrowings

Total short-term borrowings consist of the following as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31,		December 31,
	2015		2014
Securities sold under agreements to repurchase	$	39,434	$	44,393
Other short-term borrowings		335,000		343,000
Total short-term borrowings	$	374,434	$	387,393
Maximum month-end outstanding balance	$	374,434	$	387,393
Average outstanding balance during the period		379,604		237,896
Average interest rate during the period		0.27%		0.24%
Average interest rate at end of period		0.26%		0.31%
Other short-term borrowings:
Federal funds purchased	$	-	$	-
FHLB		325,000		335,000
Other lines of credit		10,000		8,000

Trust Preferred Capital Notes Qualify for Tier 1 Capital

The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. 

	Principal		Investment(1)		Spread to 3-Month LIBOR	Rate	Maturity
Trust Preferred Capital Note - Statutory Trust I	$	22,500,000	$	696,000	2.75%	3.02%	6/17/2034
Trust Preferred Capital Note - Statutory Trust II		36,000,000		1,114,000	1.40%	1.67%	6/15/2036
VFG Limited Liability Trust I Indenture		20,000,000		619,000	2.73%	3.00%	3/18/2034
FNB Statutory Trust II Indenture		12,000,000		372,000	3.10%	3.37%	6/26/2033
Total	$	90,500,000	$	2,801,000
(1)reported as “Other Assets” within the Consolidated Balance Sheets

Advances from the FHLB

As of March 31, 2015, the Company had advances from the FHLB consisting of the following (dollars in thousands):

Long-term Type	Spread to 3-Month LIBOR	Interest Rate	Maturity Date	Advance Amount
Adjustable Rate Credit	0.44%	0.71%	8/23/2022	$	55,000
Adjustable Rate Credit	0.45%	0.72%	11/23/2022		65,000
Adjustable Rate Credit	0.45%	0.72%	11/23/2022		10,000
Adjustable Rate Credit	0.45%	0.72%	11/23/2022		10,000
Fixed Rate	-	3.62%	11/28/2017		10,000
Fixed Rate	-	3.44%	7/28/2015		10,000
Fixed Rate	-	3.75%	7/30/2018		5,000
Fixed Rate	-	3.97%	7/30/2018		5,000
Fixed Rate Hybrid	-	2.11%	10/5/2016		25,000
Fixed Rate Hybrid	-	0.91%	7/25/2016		15,000
				$	210,000

As of December 31, 2014, the Company had advances from the FHLB consisting of the following (dollars in thousands):

Long-term Type	Spread to 3-Month LIBOR	Interest Rate	Maturity Date	Advance Amount
Adjustable Rate Credit	0.44%	0.70%	8/23/2022	$	55,000
Adjustable Rate Credit	0.45%	0.71%	11/23/2022		65,000
Adjustable Rate Credit	0.45%	0.71%	11/23/2022		10,000
Adjustable Rate Credit	0.45%	0.71%	11/23/2022		10,000
Fixed Rate	-	3.62%	11/28/2017		10,000
Fixed Rate	-	3.44%	7/28/2015		10,000
Fixed Rate	-	3.75%	7/30/2018		5,000
Fixed Rate	-	3.97%	7/30/2018		5,000
Fixed Rate Hybrid	-	2.11%	10/5/2016		25,000
Fixed Rate Hybrid	-	0.91%	7/25/2016		15,000
				$	210,000

Contractual Maturities of Long-Term Debt

As of March 31, 2015, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands):

	Trust Preferred Capital Notes		Subordinated Debt		FHLB Advances		Fair Value Premium (Discount)		Prepayment Penalty		Total Long-term Borrowings
Remaining nine months in 2015	$	-	$	-	$	10,000	$	100	$	(1,384)	$	8,716
2016		-		17,500		40,000		271		(1,882)		55,889
2017		-		-		10,000		170		(1,922)		8,248
2018		-		-		10,000		(143)		(1,970)		7,887
2019		-		-		-		(286)		(2,018)		(2,304)
2020		-		-		-		(301)		(2,074)		(2,375)
Thereafter		93,301		-		140,000		(5,622)		(3,826)		223,853
Total Long-term borrowings	$	93,301	$	17,500	$	210,000	$	(5,811)	$	(15,076)	$	299,914

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INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2015

INTANGIBLE ASSETS [Abstract]

Information Concerning Intangible Assets with Finite Life

Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands):

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
March 31, 2015
Amortizable core deposit intangibles	$	76,185	$	46,652	$	29,533
December 31, 2014
Amortizable core deposit intangibles	$	76,185	$	44,430	$	31,755
March 31, 2014
Amortizable core deposit intangibles	$	76,185	$	37,250	$	38,935

Estimated Remaining Amortization Expense of Core Deposit Intangibles

As of March 31, 2015, the estimated remaining amortization expense of core deposit intangibles is as follows (dollars in thousands):

For the remaining nine months of 2015	$	6,221
For the year ending December 31, 2016		6,932
For the year ending December 31, 2017		5,590
For the year ending December 31, 2018		4,144
For the year ending December 31, 2019		3,093
For the year ending December 31, 2020		2,028
Thereafter		1,525
Total estimated amortization expense	$	29,533

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INTANGIBLE ASSETS (Information Concerning Intangible Assets with Finite Life) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Information concerning intangible assets with finite life
Gross Carrying Value	$ 76,185	$ 76,185	$ 76,185
Accumulated Amortization	46,652	44,430	37,250
Net Carrying Value/Total estimated amortization expense	$ 29,533	$ 31,755	$ 38,935

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LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 5,387,755,000	$ 5,345,996,000	$ 5,274,198,000
Loans and interest accruing 90 days past due	7,932,000	10,047,000
Average investment in impaired loans	119,316,000	141,184,000
Interest income recorded on impaired loans	1,221,000	5,871,000
Nonaccrual loans	17,385,000	19,255,000
Period for restructured loan to be considered default	90 days
Recorded Investment	114,756,000	132,180,000
Loans considered to be trouble debt restructurings	24,076,000	26,777,000
Purchased Impaired (net of credit mark)	91,346,000	105,788,000	138,431,000
purchased impaired loans (gross)	111,600,000	126,300,000
Acquired Performing Loan Portfolio [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,700,000,000	1,800,000,000
Remaining discount on acquired loans	$ 23,800,000	$ 24,300,000

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

Balances of Commitments and Contingencies

The following table presents the balances of commitments and contingencies (dollars in thousands):

	March 31,		December 31,
	2015		2014
Commitments with off-balance sheet risk:
Commitments to extend credit (1)	$	1,674,177	$	1,601,287
Standby letters of credit		113,362		117,988
Mortgage loan rate lock commitments		80,159		49,552
Total commitments with off-balance sheet risk	$	1,867,698	$	1,768,827
Commitments with balance sheet risk:
Loans held for sale	$	46,048	$	42,519
Total other commitments	$	1,913,746	$	1,811,346
(1)Includes unfunded overdraft protection.

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DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2015

Cash Flow Hedging [Member]

Derivative [Line Items]

Summary of the Derivatives

Shown below is a summary of the derivatives designated as cash flow hedges at March 31, 2015 and December 31, 2014 (dollars in thousands):

		Notional						Receive		Pay		Life
	Positions	Amount		Asset		Liability		Rate		Rate		(Years)
As of March 31, 2015
Pay fixed - receive floating interest rate swaps	7	$	208,000	$	-	$	10,854	0.27%	(1)	2.77%	(1)	1.88	(1)
Receive fixed - pay floating interest rate swaps	4	$	55,000	$	1,185	$	-	4.93%		3.55%		4.47
(1) Due to their deferred nature, the rates and the life exclude the four FHLB advance swaps.
		Notional						Receive		Pay		Life
	Positions	Amount		Asset		Liability		Rate		Rate		(Years)
As of December 31, 2014
Pay fixed - receive floating interest rate swaps	7	$	208,000	$	-	$	8,433	0.26%	(1)	2.77%	(1)	2.12	(1)
Receive fixed - pay floating interest rate swaps	4	$	55,000	$	580	$	-	4.93%		3.55%		4.72
(1) Due to their deferred nature, the rates and the life exclude the four FHLB advance swaps.

Interest Rate Swaps [Member]

Derivative [Line Items]

Summary of the Derivatives

Shown below is a summary regarding loan swap derivative activities at March 31, 2015 and December 31, 2014 (dollars in thousands):

		Notional						Receive	Pay	Life
	Positions	Amount		Asset		Liability		Rate	Rate	(Years)
As of March 31, 2015
Receive fixed - pay floating interest rate swaps	33	$	134,496	$	4,684	$	-	4.28%	2.47%	7.14
Pay fixed - receive floating interest rate swaps	33	$	134,496	$	-	$	4,684	2.47%	4.28%	7.14
		Notional						Receive	Pay	Life
	Positions	Amount		Asset		Liability		Rate	Rate	(Years)
As of December 31, 2014
Receive fixed - pay floating interest rate swaps	30	$	122,793	$	2,681	$	-	4.29%	2.50%	7.14
Pay fixed - receive floating interest rate swaps	30	$	122,793	$	-	$	2,681	2.50%	4.29%	7.14

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Dividends on common stock, per share	$ 0.15	$ 0.14
Common Stock [Member]
Issuance of Common Stock in regard to acquisition, shares		22,147,874
Stock purchased under stock repurchase plan, shares	102,843	510,515
Issuance of common stock under Dividend Reinvestment Plan, shares	15,781	10,843
Issuance of common stock under Equity Compensation Plans, shares	7,686	24,465
Vesting of restricted stock under Equity Compensation Plans, shares	29,140	13,310
Issuance of common stock for services rendered, shares	4,576
Net settle for taxes on Restricted Stock Awards, shares	9,869	61,732
Retained Earnings [Member]
Dividends on common stock, per share	$ 0.15	$ 0.14
Impact of adoption of ASU 2014-01			$ 856,000	$ 429,000
Accumulated Other Comprehensive Income [Member]
Other comprehensive income (loss), tax	$ 2,115,000	$ 3,414,000

XML

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2015

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]

Change in Accumulated Other Comprehensive Income

The change in accumulated other comprehensive income (loss) for the three months ended March 31, 2015 is summarized as follows, net of tax (dollars in thousands):

	Unrealized Gains (Losses) on Securities		Change in Fair Value of Cash Flow Hedge		Total
Balance - December 31, 2014	$	17,439	$	(5,184)	$	12,255
Other comprehensive income (loss)		3,783		(1,490)		2,293
Amounts reclassified from accumulated other comprehensive income		(125)		272		147
Net current period other comprehensive income (loss)		3,658		(1,218)		2,440
Balance - March 31, 2015	$	21,097	$	(6,402)	$	14,695

The change in accumulated other comprehensive income (loss) for the three months ended March 31, 2014 is summarized as follows, net of tax (dollars in thousands):

	Unrealized Gains (Losses) on Securities		Change in Fair Value of Cash Flow Hedge		Total
Balance - December 31, 2013	$	1,192	$	(3,382)	$	(2,190)
Other comprehensive income (loss)		6,313		575		6,888
Amounts reclassified from accumulated other comprehensive income		(19)		47		28
Net current period other comprehensive income (loss)		6,294		622		6,916
Balance - March 31, 2014	$	7,486	$	(2,760)	$	4,726

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SEGMENT REPORTING DISCLOSURES (Information About Reportable Segments and Reconciliation) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Information about reportable segments and reconciliation
Net interest income	$ 61,969	$ 63,758
Provision for loan losses	1,750
Net interest income after provision for loan losses	60,219	63,758
Noninterest income	15,054	13,788
Noninterest expenses	53,840	67,285
Income before income taxes	21,433	10,261
Income tax expense (benefit)	5,732	2,553
Net income	15,701	7,708
Total assets	7,388,559	7,294,505	7,358,643
Community Bank [Member]
Information about reportable segments and reconciliation
Net interest income	61,723	63,526
Provision for loan losses	1,750
Net interest income after provision for loan losses	59,973	63,526
Noninterest income	12,848	11,659
Noninterest expenses	50,972	62,746
Income before income taxes	21,849	12,439
Income tax expense (benefit)	5,881	3,351
Net income	15,968	9,088
Total assets	7,382,266	7,282,311
Mortgage [Member]
Information about reportable segments and reconciliation
Net interest income	246	232
Net interest income after provision for loan losses	246	232
Noninterest income	2,376	2,300
Noninterest expenses	3,038	4,710
Income before income taxes	(416)	(2,178)
Income tax expense (benefit)	(149)	(798)
Net income	(267)	(1,380)
Total assets	55,380	57,705
Eliminations [Member]
Information about reportable segments and reconciliation
Noninterest income	(170)	(171)
Noninterest expenses	(170)	(171)
Total assets	$ (49,087)	$ (45,511)

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SECURITIES (Narrative) (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015 item	Dec. 31, 2014 item
SECURITIES [Abstract]
Federal Home Loan Bank requires Bank to maintain percentage of stock equal to outstanding borrowings	4.25%	4.50%
Percentage of Federal Reserve Bank of Richmond reserve	6.00%	6.00%
Restricted equity securities consist of Federal Reserve Bank stock	$ 23,800,000	$ 23,800,000
Federal Home Loan Bank Stock	29,300,000	31,000,000
Securities in a continuous loss position, more than 12 months, unrealized losses	820,000	1,134,000
Individual securities that had been in a continuous loss position for more than 12 months, amount	69,021,000	96,404,000
Individual securities that had been in a continuous loss position	30	60
Securities pledged to secure public deposits, repurchase agreements and other purposes	402,300,000	397,000,000
Credit-related OTTI	$ 0

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LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Including Purchased Impaired Loans) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	$ 91,346	$ 105,788	$ 138,431
Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	3,090	3,782
Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	31,004	31,167
Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	19,575	28,869
Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	6,055	7,427
Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	16,299	16,879
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	3,338	3,855
Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	1,794	2,256
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	81,155	94,235	120,291
4 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality
4 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	2,758	1,525
4 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	3,855	2,837
4 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	1,580	1,564
4 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	3,783	2,807
4 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	492	437
4 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	69
4 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	12,537	9,170
5 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality
5 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	3,647	3,546
5 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	3,597	934
5 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	585	189
5 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	2,083	1,253
5 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	13
5 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality
5 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	9,925	5,922
6 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	2,491	3,130
6 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	9,042	10,880
6 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	9,171	18,736
6 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	2,595	3,148
6 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	4,661	6,462
6 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	436	913
6 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	530	510
6 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	28,926	43,779
7 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	146	194
7 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	15,557	15,216
7 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	2,952	6,362
7 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	1,295	2,526
7 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	5,772	6,357
7 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	2,371	2,477
7 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	1,195	1,746
7 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	29,288	34,878
8 [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	453	458
8 [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality
8 [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality
8 [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality
8 [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality
8 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	26	28
8 [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality
8 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	479	486
Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	91,346	105,788
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	3,090	3,782
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate - Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	31,004	31,167
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	19,575	28,869
Receivables Acquired with Deteriorated Credit Quality [Member] | Raw Land and Lots [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	6,055	7,427
Receivables Acquired with Deteriorated Credit Quality [Member] | Single Family Investment Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	16,299	16,879
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	3,338	3,855
Receivables Acquired with Deteriorated Credit Quality [Member] | Other Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans acquired with a deterioration of credit quality	$ 1,794	$ 2,256

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FAIR VALUE MEASUREMENTS (Summary of Quantitative Information About Level 3 Fair Value Measurements) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Total	38,055		43,915
Other Real Estate Owned [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Level 3 fair value unobservable inputs	Discount applied to market comparables (1)	[1]	Discount applied to market comparables (1)	[1]
Other Real Estate Owned [Member] | Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Other real estate owned	25,434		28,118
Discount applied to market comparables [Member] | Other Real Estate Owned [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Weighted Average	31.00%		32.00%
Impaired loans [Member] | Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Total Impaired Loans	12,621		15,797
Impaired loans [Member] | Commercial Real Estate - Owner Occupied [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Level 3 fair value unobservable inputs	Discount applied to market comparables (1)	[1]	Discount applied to market comparables (1)	[1]
Impaired loans [Member] | Commercial Real Estate - Owner Occupied [Member] | Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Total Impaired Loans	4,524		3,304
Impaired loans [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Level 3 fair value unobservable inputs	Discount applied to market comparables (1)	[1]	Discount applied to market comparables (1)	[1]
Impaired loans [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Total Impaired Loans	3,860		7,828
Impaired loans [Member] | Raw Land and Lots [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Level 3 fair value unobservable inputs			Discount applied to market comparables (1)	[1]
Impaired loans [Member] | Raw Land and Lots [Member] | Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Total Impaired Loans			431
Impaired loans [Member] | Single Family Investment Real Estate [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Level 3 fair value unobservable inputs	Discount applied to market comparables (1)	[1]	Discount applied to market comparables (1)	[1]
Impaired loans [Member] | Single Family Investment Real Estate [Member] | Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Total Impaired Loans	1,220		1,366
Impaired loans [Member] | Commercial and Industrial [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Level 3 fair value unobservable inputs	Discount applied to market comparables (1)	[1]	Discount applied to market comparables (1)	[1]
Impaired loans [Member] | Commercial and Industrial [Member] | Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Total Impaired Loans	2,011		339
Impaired loans [Member] | Other Consumer [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Level 3 fair value unobservable inputs	Discount applied to market comparables (1)	[1],[2]	Discount applied to market comparables (1)	[1],[2]
Impaired loans [Member] | Other Consumer [Member] | Market comparables [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Total Impaired Loans	1,006	[2]	2,529	[2]
Impaired loans [Member] | Discount applied to market comparables [Member] | Commercial Real Estate - Owner Occupied [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Weighted Average	37.00%		34.00%
Impaired loans [Member] | Discount applied to market comparables [Member] | Commercial Real Estate - Non-Owner Occupied [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Weighted Average	0.00%		1.00%
Impaired loans [Member] | Discount applied to market comparables [Member] | Raw Land and Lots [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Weighted Average			16.00%
Impaired loans [Member] | Discount applied to market comparables [Member] | Single Family Investment Real Estate [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Weighted Average	5.00%		14.00%
Impaired loans [Member] | Discount applied to market comparables [Member] | Commercial and Industrial [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Weighted Average	11.00%		45.00%
Impaired loans [Member] | Discount applied to market comparables [Member] | Other Consumer [Member]
Summary of quantitative information about Level 3 Fair Value Measurements
Weighted Average	5.00%	[2]	6.00%	[2]

[1] A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.

[2] The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Cash and cash equivalents:
Cash and due from banks	$ 112,793	$ 112,752
Interest-bearing deposits in other banks	24,256	19,344
Money market investments	1	1
Federal funds sold	312	1,163
Total cash and cash equivalents	137,362	133,260
Securities available for sale, at fair value	1,089,664	1,102,114
Restricted stock, at cost	53,146	54,854
Loans held for sale	46,048	42,519
Loans held for investment, net of deferred fees and costs	5,387,755	5,345,996
Less allowance for loan losses	30,977	32,384
Net loans held for investment	5,356,778	5,313,612
Premises and equipment, net	134,429	135,247
Other real estate owned, net of valuation allowance	25,434	28,118
Core deposit intangibles, net	29,533	31,755
Goodwill	293,522	293,522
Bank owned life insurance	140,143	139,005
Other assets	82,500	84,637
Total assets	7,388,559	7,358,643
LIABILITIES
Noninterest-bearing demand deposits	1,274,935	1,199,378
Interest-bearing deposits	4,395,293	4,439,392
Total deposits	5,670,228	5,638,770
Securities sold under agreements to repurchase	39,434	44,393
Other short-term borrowings	335,000	343,000
Long-term borrowings	299,914	299,542
Other liabilities	57,067	55,769
Total liabilities	6,401,643	6,381,474
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $1.33 par value, shares authorized 100,000,000; issued and outstanding, 45,155,024 shares and 45,162,853 shares, respectively.	59,721	59,795
Surplus	641,882	643,443
Retained earnings	270,618	261,676
Accumulated other comprehensive income	14,695	12,255
Total stockholders' equity	986,916	977,169
Total liabilities and stockholders' equity	$ 7,388,559	$ 7,358,643

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LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Stated at Face Amount, Net of Unearned Income) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	$ 5,387,755	$ 5,345,996	$ 5,274,198
Commercial Construction [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	358,436	341,280
Commercial Real Estate - Owner Occupied [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	898,222	875,443
Commercial Real Estate - Non-Owner Occupied [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	1,518,590	1,509,159
Raw Land and Lots [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	197,759	211,225
Single Family Investment Real Estate [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	416,984	412,494
Commercial and Industrial [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	426,490	393,776
Other Commercial [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	80,416	81,106
Mortgage [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	466,804	478,151
Consumer Construction [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	65,898	74,168
Indirect Auto [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	203,369	199,411
Indirect Marine [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	43,643	43,190
HELOCs [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	491,116	500,579
Credit Card [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	24,691	24,225
Other Consumer [Member]
Loans stated at face amount, net of unearned income
Loans held for investment, net of deferred fees and costs	$ 195,337	$ 201,789

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Consolidated Statements of Comprehensive Income [Abstract]
Tax expense (benefit) related to reclassification adjustment for losses included in net income	$ (146,000)	$ (25,000)
Tax expense (benefit) related to unrealized holding (losses) gains arising during period	2,037,000	3,399,000
Tax expense (benefit) related to (gains) losses on the sale of securities	$ 68,000	$ 10,000

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BORROWINGS (Short-Term Borrowings) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Short-term borrowings
Securities sold under agreements to repurchase	$ 39,434	$ 44,393
Other short-term borrowings	335,000	343,000
Total short-term borrowings	374,434	387,393
Maximum month-end outstanding balance	374,434	387,393
Average outstanding balance during the period	379,604	237,896
Average interest rate during the period	0.27%	0.24%
Average interest rate at end of period	0.26%	0.31%
Other short-term borrowings:
Federal Funds purchased
FHLB	325,000	335,000
Other lines of credit	$ 10,000	$ 8,000

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2015

EARNINGS PER SHARE [Abstract]

Reconciliation of the Denominators of the Basic and Diluted EPS Computations

The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three months ended March 31, 2015 and 2014 (in thousands except per share data):

	Net Income Available to Common Shareholders (Numerator)		Weighted Average Common Shares (Denominator)	Per Share Amount
For the three months ended March 31, 2015
Net income, basic	$	15,701	45,106	$	0.35
Add: potentially dilutive common shares - stock awards		-	82		-
Diluted	$	15,701	45,188	$	0.35
For the three months ended March 31, 2014
Net income, basic	$	7,708	46,977	$	0.16
Add: potentially dilutive common shares - stock awards		-	103		-
Diluted	$	7,708	47,080	$	0.16

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DERIVATIVES (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Minimum [Member]
Derivatives, Fair Value [Line Items]
Interest rate lock commitments period	30 days
Maximum [Member]
Derivatives, Fair Value [Line Items]
Interest rate lock commitments period	120 days
Trust Swaps [Member]
Derivatives, Fair Value [Line Items]
Notional amount	68,000,000
Average fixed rate	2.77%
Number of interest rate swaps	3
Deposits with other financial institutions serves as collateral	5,700,000
Trust Swaps [Member] | Minimum [Member]
Derivatives, Fair Value [Line Items]
Derivative term	3 years
Trust Swaps [Member] | Maximum [Member]
Derivatives, Fair Value [Line Items]
Derivative term	6 years
Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Market value of securities pledged as collateral for derivative instruments	6,700,000
Deposits with other financial institutions serves as collateral	3,500,000
Cash Flow Hedging [Member]
Derivatives, Fair Value [Line Items]
Notional amount	263,000,000
Number of interest rate swaps	11
Unrealized loss of fair value of the cash flow hedges	(9,700,000)
Prime Loan Swaps [Member]
Derivatives, Fair Value [Line Items]
Notional amount	55,000,000
Number of loan swaps with floor rates	1
Number of interest rate swaps	4
Derivative term	6 years
Interest rate spread calculated on the variable rate	0.49%
Interest rate swaps agreement, effective date	Sep. 17, 2013
Prime Loan Swaps [Member] | Minimum [Member]
Derivatives, Fair Value [Line Items]
Fixed rate	4.71%
Floor interest rate	4.00%
Prime Loan Swaps [Member] | Maximum [Member]
Derivatives, Fair Value [Line Items]
Fixed rate	5.20%
FHLB Advance Swaps [Member]
Derivatives, Fair Value [Line Items]
Notional amount	140,000,000
Number of interest rate swaps	4
FHLB Advance Swaps [Member] | Minimum [Member]
Derivatives, Fair Value [Line Items]
Fixed rate	3.16%
Derivative term	5 years
Interest rate swaps agreement, effective date	Feb. 23, 2017
FHLB Advance Swaps [Member] | Maximum [Member]
Derivatives, Fair Value [Line Items]
Fixed rate	3.46%
Derivative term	6 years
Interest rate swaps agreement, effective date	Feb. 23, 2018
Fair Value Hedging [Member]
Derivatives, Fair Value [Line Items]
Notional amount	38,300,000
Fair value of derivatives	1,200,000
Unrealized loss of fair value of the cash flow hedges	(1,300,000)
Fixed rate	3.42%
Derivative term	15 years
Interest rate spread calculated on the variable rate	1.93%
Prime Loan Swaps and FHLB Advance Swaps [Member]
Derivatives, Fair Value [Line Items]
Market value of securities pledged as collateral for derivative instruments	4,700,000
Interest Rate Lock Commitments [Member]
Derivatives, Fair Value [Line Items]
Notional amount	80,200,000
Asset	1,271,000	513,000
Best Effort Forward Delivery Commitments [Member]
Derivatives, Fair Value [Line Items]
Liabilities	367,000

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SEGMENT REPORTING DISCLOSURES

3 Months Ended

Mar. 31, 2015

SEGMENT REPORTING DISCLOSURES [Abstract]

SEGMENT REPORTING DISCLOSURES

13.SEGMENT REPORTING DISCLOSURES

The Company has two reportable segments: a traditional full service community bank segment and a mortgage loan origination business segment. The community bank segment includes one subsidiary bank, the Bank, which provides loan, deposit, investment, and trust services to retail and commercial customers throughout its 131retail locations in Virginia.  The mortgage segment includes UMG, which provides a variety of mortgage loan products principally in Virginia, North Carolina, South Carolina, Maryland, and the Washington D.C. metro area.  These loans are originated and sold primarily in the secondary market through purchase commitments from investors, which serves to mitigate the Company’s exposure to interest rate risk.

Profit and loss is measured by net income after taxes including realized gains and losses on the Company’s investment portfolio.  The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.  Inter-segment transactions are recorded at cost and eliminated as part of the consolidation process.

Both of the Company’s reportable segments are service-based.  The mortgage business is a fee-based business while the bank is driven principally by net interest income.  The bank segment provides a distribution and referral network through its customers for the mortgage loan origination business.  The mortgage segment offers a more limited referral network for the bank segment.

The community bank segment provides the mortgage segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest at the three month LIBOR rate plus 0.15% with no floor, effective January 1, 2015.  During the quarter ended March 31, 2014, the interest rate on the warehouse line of credit was the three month LIBOR rate plus 1.5% with a floor of 2.0%.These transactions are eliminated in the consolidation process.  A management fee for operations and administrative support services is charged to all subsidiaries and eliminated in the consolidated totals.

Information about reportable segments and reconciliation of such information to the consolidated financial statements for the three months ended March 31, 2015 and 2014 is as follows (dollars in thousands):

UNION BANKSHARES CORPORATION AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
(Dollars in thousands)
	Community Bank		Mortgage		Eliminations		Consolidated
Three Months Ended March 31, 2015
Net interest income	$	61,723	$	246	$	-	$	61,969
Provision for loan losses		1,750		-		-		1,750
Net interest income after provision for loan losses		59,973		246		-		60,219
Noninterest income		12,848		2,376		(170)		15,054
Noninterest expenses		50,972		3,038		(170)		53,840
Income (loss) before income taxes		21,849		(416)		-		21,433
Income tax expense (benefit)		5,881		(149)		-		5,732
Net income (loss)	$	15,968	$	(267)	$	-	$	15,701
Total assets	$	7,382,266	$	55,380	$	(49,087)	$	7,388,559
Three Months Ended March 31, 2014
Net interest income	$	63,526	$	232	$	-	$	63,758
Provision for loan losses		-		-		-		-
Net interest income after provision for loan losses		63,526		232		-		63,758
Noninterest income		11,659		2,300		(171)		13,788
Noninterest expenses		62,746		4,710		(171)		67,285
Income (loss) before income taxes		12,439		(2,178)		-		10,261
Income tax expense (benefit)		3,351		(798)		-		2,553
Net income (loss)	$	9,088	$	(1,380)	$	-	$	7,708
Total assets	$	7,282,311	$	57,705	$	(45,511)	$	7,294,505

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SEGMENT REPORTING DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2015

SEGMENT REPORTING DISCLOSURES [Abstract]

Information About Reportable Segments and Reconciliation

Information about reportable segments and reconciliation of such information to the consolidated financial statements for the three months ended March 31, 2015 and 2014 is as follows (dollars in thousands):

UNION BANKSHARES CORPORATION AND SUBSIDIARIES
SEGMENT FINANCIAL INFORMATION
(Dollars in thousands)
	Community Bank		Mortgage		Eliminations		Consolidated
Three Months Ended March 31, 2015
Net interest income	$	61,723	$	246	$	-	$	61,969
Provision for loan losses		1,750		-		-		1,750
Net interest income after provision for loan losses		59,973		246		-		60,219
Noninterest income		12,848		2,376		(170)		15,054
Noninterest expenses		50,972		3,038		(170)		53,840
Income (loss) before income taxes		21,849		(416)		-		21,433
Income tax expense (benefit)		5,881		(149)		-		5,732
Net income (loss)	$	15,968	$	(267)	$	-	$	15,701
Total assets	$	7,382,266	$	55,380	$	(49,087)	$	7,388,559
Three Months Ended March 31, 2014
Net interest income	$	63,526	$	232	$	-	$	63,758
Provision for loan losses		-		-		-		-
Net interest income after provision for loan losses		63,526		232		-		63,758
Noninterest income		11,659		2,300		(171)		13,788
Noninterest expenses		62,746		4,710		(171)		67,285
Income (loss) before income taxes		12,439		(2,178)		-		10,261
Income tax expense (benefit)		3,351		(798)		-		2,553
Net income (loss)	$	9,088	$	(1,380)	$	-	$	7,708
Total assets	$	7,282,311	$	57,705	$	(45,511)	$	7,294,505

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ACCOUNTING POLICIES (Policy)

3 Months Ended

Mar. 31, 2015

ACCOUNTING POLICIES [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.”  The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions.  Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item.  If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item.  The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.”  The amendments in this ASU amend the consolidation requirements in ASC 810, Consolidation, and significantly change the consolidation analysis required under U.S. GAAP.  Under this guidance, limited partnerships will be considered variable interest entities (“VIEs”) unless the limited partners have either substantive kick-out or participating rights; this amendment will result in more partnerships being considered VIEs, but it will be less likely that a general partner will consolidate a limited partnership.  The amendments also change the effect that fees paid to a decision maker or service provider have on the consolidation analysis; it is less likely that the fees themselves will be considered a variable interest, that an entity will be a VIE, or that consolidation will result.  The changes modify how a reporting entity considers how its variable interests affect its consolidation process; the related party tiebreaker test and mandatory consolidation by one of the related parties will have to be performed less frequently than under current U.S. GAAP.  For entities other than limited partnerships, the amendments clarify how to determine whether the equity holders have power over the entity and could affect whether the entity is a VIE.  The amendments are expected to result in the deconsolidation of many entities.  The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  The Company is currently assessing the impact that ASU 2015-02 will have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.”  The ASU does not change the existing recognition and measurement guidance for debt issuance costs but requires that debt issuance costs related to a debt liability recorded on the balance sheet be present in the balance sheet as a direct deduction from the carrying amount of that debt liability.  The amendments should be disclosed consistent with the disclosure requirement of a change in accounting principle and applied on a retrospective basis.  This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted.  The Company does not expect the adoption of ASU 2015-03 to have a material impact on its consolidated financial statements.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Change in Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Change in accumulated other comprehensive income
Unrealized Gains (losses) on Securities, Beginning Balance	$ 17,439	$ 1,192
Change in Fair Value of Cash Flow Hedge, Beginning Balance	(5,184)	(3,382)
Total, Beginning Balance	12,255	(2,190)
Other comprehensive income (loss) before reclass, Unrealized Gains (losses) on Securities	3,783	6,313
Other comprehensive income (loss) before reclass, Change in Fair Value of Cash Flow Hedge	(1,490)	575
Other comprehensive income (loss) before reclass, Total	2,293	6,888
Amounts reclassified from accumulated other comprehensive income, Unrealized Gains (losses) on Securities	(125)	(19)
Amounts reclassified from accumulated other comprehensive income, Change in Fair Value of Cash Flow Hedge	272	47
Amounts reclassified from accumulated other comprehensive income	147	28
Net current period other comprehensive income (loss), Unrealized Gains (losses) on Securities	3,658	6,294
Net current period other comprehensive income (loss), Change in Fair Value of Cash Flow Hedge	(1,218)	622
Other comprehensive income (loss)	2,440	6,916
Unrealized Gains (losses) on Securities, Ending Balance	21,097	7,486
Change in Fair Value of Cash Flow Hedge, Ending Balance	(6,402)	(2,760)
Total, Ending Balance	$ 14,695	$ 4,726

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) In Thousands	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member]		Accumulated Other Comprehensive Income [Member]	Total
Balance at Dec. 31, 2013	$ 33,020	$ 170,770	$ 236,210	[1]	$ (2,190)	$ 437,810
Net income			7,708			7,708
Other comprehensive income (loss), (net of tax)					6,916	6,916
Issuance of common stock in regard to acquisition	29,457	520,066				549,523
Dividends on common stock			(6,332)			(6,332)
Stock purchased under stock repurchase plan	(679)	(12,286)				(12,965)
Issuance of common stock under Dividend Reinvestment Plan	14	244	(258)
Issuance of common stock under Equity Compensation Plans	33	425				458
Vesting of restricted stock under Equity Compensation Plans	18	(18)
Net settle for taxes on Restricted Stock Awards	(83)	(1,432)				(1,515)
Stock-based compensation expense		374				374
Balance at Mar. 31, 2014	61,780	678,143	237,328		4,726	981,977
Balance at Dec. 31, 2014	59,795	643,443	261,676	[1]	12,255	977,169
Net income			15,701			15,701
Other comprehensive income (loss), (net of tax)					2,440	2,440
Dividends on common stock			(6,431)			(6,431)
Stock purchased under stock repurchase plan	(137)	(2,250)				(2,387)
Issuance of common stock under Dividend Reinvestment Plan	21	307	(328)
Issuance of common stock under Equity Compensation Plans	10	137				147
Issuance of common stock for services rendered	6	94				100
Vesting of restricted stock under Equity Compensation Plans	39	(39)
Net settle for taxes on Restricted Stock Awards	(13)	(200)				(213)
Stock-based compensation expense		390				390
Balance at Mar. 31, 2015	$ 59,721	$ 641,882	$ 270,618		$ 14,695	$ 986,916

[1] Retained earnings as of December 31, 2013 and 2014 includes the cumulative impact of $429,000 and $856,000, respectively, resulting from the adoption of ASU 2014-01 “Accounting For Investments in Qualified Affordable Housing Projects.” See Note 1 “Accounting Policies” for additional information.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Consolidated Balance Sheets [Abstract]
Common stock, par value	$ 1.33	$ 1.33
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	45,155,024	45,162,853
Common stock, shares outstanding	45,155,024	45,162,853

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DERIVATIVES

3 Months Ended

Mar. 31, 2015

DERIVATIVES [Abstract]

DERIVATIVES

8.DERIVATIVES

The Company is exposed to economic risks arising from its business operations and uses derivatives primarily to manage risk associated with changing interest rates, and to assist customers with their risk management objectives.  The Company designates its derivatives either as hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge) or as a free standing derivative such as interest rate lock commitments that do not qualify for hedge accounting.  The Company uses interest rate derivatives to manage its exposure to interest rate movements and add stability to interest income and expense. The Company also enters into back-to-back loan swaps to assist customers in managing changing interest rates.

Cash Flow Hedges

As part of its cash flow hedging strategy, the Company uses interest rate swap agreements to limit the variability of expected future cash flows (primarily associated with the Company’s variable rate borrowings) by exchanging a notional amount, equal to the principal amount of the borrowings, for fixed-rate interest based on benchmarked interest rates.  As of March 31, 2015, the Company had 11 interest rate swaps designated as cash flow hedges with an aggregate notional amount of $263.0 million.

The Company has entered into three interest rate swap agreements (the “trust swaps”) to mitigate the variable interest rate risk related to the trust preferred capital notes further described in Note 6 “Borrowings.”  The Company receives interest of LIBOR from a counterparty and pays a weighted average fixed rate of 2.77% to the same counterparty calculated on a notional amount of $68.0 million.  The original terms of the trust swaps range from three to six years. 

The Company has entered into four interest rate swap agreements (the “prime loan swaps”) to mitigate the variable interest rate risks of certain prime commercial loans.  The Company receives a fixed interest rate ranging from 4.71% to 5.20% from the counterparty and pays interest based on the Wall Street Journal prime index, with a spread of up to 0.49%, to the same counterparty calculated on a notional amount of $55.0 million.  One of the four prime loan swaps contains a floor rate of 4.00%.  The original terms of the four prime loan swaps is six years with a fixed rate that started September 17, 2013.  

The Company has entered into four interest rate swap agreements (“FHLB advance swaps”) to mitigate variable interest rate risk on certain designated variable rate FHLB borrowings. The Company receives an interest rate based on the three month LIBOR from the counterparty and pays an interest rate rangingfrom 3.16% to 3.46% to the same counterparty calculated on a notional amount of $140.0 million.  The FHLB advance swaps are deferred starting swaps with terms of six years and five yearsand effective dates of February 23, 2017 and February 23, 2018, respectively.

All swaps were entered into with counterparties that met the Company’s credit standards and the agreements contain collateral provisions protecting the at-risk party.  The Company believes that the credit risk inherent in the contract is not significant.  As of March  31, 2015, the Company had $5.7 million of cash pledged as collateral for the trust swaps and securities with a market value of $4.7 million pledged as collateral for the prime loan swaps and FHLB advance swaps.

Amounts receivable or payable are recognized as accrued under the terms of the agreements.  In accordance with ASC 815, Derivatives and Hedging, the Company has designated the trust swaps, prime loan swaps, and FHLB advance swaps as cash flow hedges, with the effective portions of the derivatives’ unrealized gains or losses recorded as a component of other comprehensive income.  The ineffective portions of the unrealized gains or losses, if any, would be recorded in interest income and interest expense in the Company’s Consolidated Statements of Income.  The Company has assessed the effectiveness of each hedging relationship by comparing the changes in cash flows of the hedging instrument.  Based on the Company’s assessment, its cash flow hedges are highly effective.  At March 31, 2015, the fair value of the Company’s cash flow hedges was a net unrealized loss of $9.7 million, the amount the Company would have expected to pay if the contracts were terminated.

Shown below is a summary of the derivatives designated as cash flow hedges at March 31, 2015 and December 31, 2014 (dollars in thousands):

		Notional						Receive		Pay		Life
	Positions	Amount		Asset		Liability		Rate		Rate		(Years)
As of March 31, 2015
Pay fixed - receive floating interest rate swaps	7	$	208,000	$	-	$	10,854	0.27%	(1)	2.77%	(1)	1.88	(1)
Receive fixed - pay floating interest rate swaps	4	$	55,000	$	1,185	$	-	4.93%		3.55%		4.47
(1) Due to their deferred nature, the rates and the life exclude the four FHLB advance swaps.
		Notional						Receive		Pay		Life
	Positions	Amount		Asset		Liability		Rate		Rate		(Years)
As of December 31, 2014
Pay fixed - receive floating interest rate swaps	7	$	208,000	$	-	$	8,433	0.26%	(1)	2.77%	(1)	2.12	(1)
Receive fixed - pay floating interest rate swaps	4	$	55,000	$	580	$	-	4.93%		3.55%		4.72
(1) Due to their deferred nature, the rates and the life exclude the four FHLB advance swaps.

Fair Value Hedge

During the normal course of business, the Company enters into interest rate swaps to convert certain long-term fixed-rate loans to floating rates to hedge the Company’s exposure to interest rate risk.  The Company applies hedge accounting in accordance with ASC 815, and the fair value hedge and the underlying hedged item, attributable to the risk being hedged, are recorded at fair value with unrealized gains and losses being recorded in the Company’s Consolidated Statements of Income.  The ineffective portions of the unrealized gains or losses, if any, would be recorded in interest income and interest expense in the Company’s Consolidated Statements of Income.  The Company uses statistical regression analysis to assess hedge effectiveness, both at inception of the hedging relationship and on an ongoing basis.  The regression analysis involves regressing the periodic change in fair value of the hedging instrument against the periodic changes in fair value of the asset being hedged due to changes in the hedged risk.

On December 30, 2014, the Company entered into a swap, constituting a fair value hedge, whereby the Company pays a fixed interest rate of 3.42% to the counterparty and receives interest of one month LIBOR plus 1.93% from the same counterparty calculated on a notional amount of $38.3 million with a term of 15 years. At March 31, 2015, the fair value of the Company’s fair value hedge was an unrealized loss of $1.3 million, the amount the Company would have expected to pay if the contract was terminated;the liability is reported in “Other Liabilities” in the Company’s Consolidated Balance Sheets.  At March 31, 2015, the notional amount of the hedged item was $38.3 million with a fair value of $1.2 million.  The fair value hedge had no material impact on the Company’s Consolidated Statements of Income.

Loan Swaps

During the normal course of business, the Company enters into interest rate swap loan relationships (“loan swaps”) with borrowers to meet their financing needs.  Upon entering into the loan swaps, the Company enters into offsetting positions with counterparties in order to minimize interest rate risk.  These back-to-back loan swaps qualify as financial derivatives with fair values as reported in “Other Assets” and “Other Liabilities” in the Company’s Consolidated Balance Sheets.  As of March  31, 2015, the Company had cash and securities with a market value of $6.7 million pledged as collateral for the loan swaps. 

Shown below is a summary regarding loan swap derivative activities at March 31, 2015 and December 31, 2014 (dollars in thousands):

		Notional						Receive	Pay	Life
	Positions	Amount		Asset		Liability		Rate	Rate	(Years)
As of March 31, 2015
Receive fixed - pay floating interest rate swaps	33	$	134,496	$	4,684	$	-	4.28%	2.47%	7.14
Pay fixed - receive floating interest rate swaps	33	$	134,496	$	-	$	4,684	2.47%	4.28%	7.14
		Notional						Receive	Pay	Life
	Positions	Amount		Asset		Liability		Rate	Rate	(Years)
As of December 31, 2014
Receive fixed - pay floating interest rate swaps	30	$	122,793	$	2,681	$	-	4.29%	2.50%	7.14
Pay fixed - receive floating interest rate swaps	30	$	122,793	$	-	$	2,681	2.50%	4.29%	7.14

Interest Rate Lock Commitments

During the normal course of business, the Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (“rate lock commitments”).  Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives.  The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days.  The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan.  The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity.

The market values of rate lock commitments and best efforts forward delivery commitments is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets.  The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close.  The fair value of the rate lock commitments as of March 31, 2015 was $1.3 million and is reported as a component of “Other Assets” in the Company’s Consolidated Balance Sheets; the fair value of the Company’s best efforts forward delivery commitments was $367,000 and is recorded as a component of “Other Liabilities” in the Company’s Consolidated Balance Sheets. Any impact to income is recorded in current period earnings as a component of “Gain on sale of mortgage loans, net of commissions” in the Company’s Consolidated Statements of Income.  At March 31, 2015, the aggregate notional amount of these derivatives was $80.2 million.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 01, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Union Bankshares Corp
Entity Central Index Key	0000883948
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		45,113,062

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2015

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The change in accumulated other comprehensive income (loss) for the three months ended March 31, 2015 is summarized as follows, net of tax (dollars in thousands):

	Unrealized Gains (Losses) on Securities		Change in Fair Value of Cash Flow Hedge		Total
Balance - December 31, 2014	$	17,439	$	(5,184)	$	12,255
Other comprehensive income (loss)		3,783		(1,490)		2,293
Amounts reclassified from accumulated other comprehensive income		(125)		272		147
Net current period other comprehensive income (loss)		3,658		(1,218)		2,440
Balance - March 31, 2015	$	21,097	$	(6,402)	$	14,695

The change in accumulated other comprehensive income (loss) for the three months ended March 31, 2014 is summarized as follows, net of tax (dollars in thousands):

	Unrealized Gains (Losses) on Securities		Change in Fair Value of Cash Flow Hedge		Total
Balance - December 31, 2013	$	1,192	$	(3,382)	$	(2,190)
Other comprehensive income (loss)		6,313		575		6,888
Amounts reclassified from accumulated other comprehensive income		(19)		47		28
Net current period other comprehensive income (loss)		6,294		622		6,916
Balance - March 31, 2014	$	7,486	$	(2,760)	$	4,726

Reclassifications of unrealized gains (losses) on available for sale securities are reported in the Company’s Consolidated Statements of Income as “Gains on securities transactions, net” with the corresponding income tax effect being reflected as a component of income tax expense.  The Company reported gains of $193,000 and $29,000for the three months ended March, 31, 2015 and 2014, respectively, related to gains and losses on the sale of securities.  The tax effect of these transactions during the three months ended March  31, 2015 and 2014was $68,000 and $10,000, respectively, which amounts were included as a component of income tax expense. 

Reclassifications of the change in fair value of cash flow hedges are reported in interest income and interest expense in the Company’s Consolidated Statements of Income with the corresponding income tax effect being reflected as a component of income tax expense.  The Company reported net interest expense of $418,000 and $72,000 for the three months ended March  31, 2015 and 2014, respectively.  The tax effect of these transactions during the three months ended March  31, 2015 and 2014was$146,000 and $25,000, respectively, which amounts were included as a component of income tax expense.

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EARNINGS PER SHARE (Narrative) (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
EARNINGS PER SHARE [Abstract]
Anti-dilutive stock awards	159,460	212,306

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CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest and dividend income:
Interest and fees on loans	$ 60,452	$ 61,269
Interest on deposits in other banks	17	12
Interest and dividends on securities:
Taxable	3,807	3,648
Nontaxable	3,324	3,279
Total interest and dividend income	67,600	68,208
Interest expense:
Interest on deposits	3,321	2,256
Interest on federal funds purchased	1	24
Interest on short-term borrowings	249	119
Interest on long-term borrowings	2,060	2,051
Total interest expense	5,631	4,450
Net interest income	61,969	63,758
Provision for loan losses	1,750
Net interest income after provision for loan losses	60,219	63,758
Noninterest income:
Service charges on deposit accounts	4,214	4,298
Other service charges and fees	3,584	3,344
Fiduciary and asset management fees	2,219	2,303
Gains on sales of mortgage loans, net of commissions	2,379	2,297
Gains on securities transactions, net	193	29
Bank owned life insurance income	1,135	1,089
Other operating income	1,330	428
Total noninterest income	15,054	13,788
Noninterest expenses:
Salaries and benefits	27,492	29,214
Occupancy expenses	5,133	5,180
Furniture and equipment expenses	2,813	2,868
Printing, postage, and supplies	1,370	1,223
Communications expense	1,179	1,098
Technology and data processing	3,255	3,074
Professional services	1,348	1,055
Marketing and advertising expense	1,687	1,065
FDIC assessment premiums and other insurance	1,398	1,393
Other taxes	1,551	1,385
Loan related expenses	684	542
OREO and credit-related expenses (recovery)	1,186	1,451
Amortization of intangible assets	2,222	2,616
Acquisition and conversion costs		13,168
Other expenses	2,522	1,953
Total noninterest expenses	53,840	67,285
Income before income taxes	21,433	10,261
Income tax expense	5,732	2,553
Net income	$ 15,701	$ 7,708
Earnings per common share:
Basic	$ 0.35	$ 0.16
Diluted	$ 0.35	$ 0.16
Dividends declared per common share	$ 0.15	$ 0.14
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Basic	45,105,969	46,977,416
Diluted	45,187,516	47,080,661

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SECURITIES

3 Months Ended

Mar. 31, 2015

SECURITIES [Abstract]

SECURITIES

3.SECURITIES

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of March 31, 2015 and December 31, 2014 are summarized as follows (dollars in thousands):

	Amortized		Gross Unrealized				Estimated
	Cost		Gains		(Losses)		Fair Value
March 31, 2015
U.S. government and agency securities	$	8,236	$	359	$	-	$	8,595
Obligations of states and political subdivisions		431,355		21,594		(511)		452,438
Corporate bonds		78,400		169		(428)		78,141
Mortgage-backed securities		529,188		11,729		(454)		540,463
Other securities		9,980		47		-		10,027
Total securities	$	1,057,159	$	33,898	$	(1,393)	$	1,089,664
December 31, 2014
U.S. government and agency securities	$	8,313	$	166	$	(25)	$	8,454
Obligations of states and political subdivisions		427,483		18,885		(721)		445,647
Corporate bonds		78,744		244		(308)		78,680
Mortgage-backed securities		550,716		9,411		(798)		559,329
Other securities		9,979		31		(6)		10,004
Total securities	$	1,075,235	$	28,737	$	(1,858)	$	1,102,114

Due to restrictions placed upon the Bank’s common stock investment in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost.  These restricted securities are not subject to the investment security classifications and are included as a separate line item on the Company’s Consolidated Balance Sheets.  At March 31, 2015, the FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the Bank’s total assets.  At December 31, 2014, the FHLB required the Bank to maintain stock in an amount equal to 4.5% of outstanding borrowings and a specific percentage of the Bank’s total assets.The Federal Reserve Bank required the Bank to maintain stock with a par value equal to 6% of its outstanding capital at both March 31, 2015 and December 31, 2014.  Restricted equity securities consist of Federal Reserve Bank stock in the amount of $23.8 million for both March 31, 2015 and December 31, 2014 and FHLB stock in the amount of $29.3 million and $31.0 million as of March 31, 2015 and December 31, 2014, respectively. 

The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired.  These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
March 31, 2015
Obligations of states and political subdivisions	$	18,293	$	(265)	$	12,469	$	(246)	$	30,762	$	(511)
Mortgage-backed securities		41,164		(130)		37,794		(324)		78,958		(454)
Corporate bonds and other securities		18,617		(178)		18,758		(250)		37,375		(428)
Totals	$	78,074	$	(573)	$	69,021	$	(820)	$	147,095	$	(1,393)
December 31, 2014
U.S. government and agency securities	$	7,055	$	(25)	$	-	$	-	$	7,055	$	(25)
Obligations of states and political subdivisions		13,602		(93)		42,514		(628)		56,116		(721)
Mortgage-backed securities		60,151		(362)		49,581		(436)		109,732		(798)
Corporate bonds and other securities		43,923		(244)		4,309		(70)		48,232		(314)
Totals	$	124,731	$	(724)	$	96,404	$	(1,134)	$	221,135	$	(1,858)

As of March 31, 2015, there were $69.0 million, or 30 issues, of individual securities that had been in a continuous loss position for more than 12 months.  Additionally, these securities had an unrealized loss of $820,000 and consisted of municipal obligations, mortgage-backed securities, and corporate bonds.  As of December 31, 2014, there were $96.4 million, or 60 issues, of individual securities that had been in a continuous loss position for more than 12 months.  Additionally, these securities had an unrealized loss of $1.1 million and consisted of municipal obligations, mortgage-backed securities, corporate bonds, and other securities.  The Company has determined that these securities are temporarily impaired as of March 31, 2015 and December 31, 2014 for the reasons set out below:

U.S. Government agencies and corporations. The unrealized losses in this category of investments were caused by interest rate fluctuations. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment.  Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of these investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.

Mortgage-backed securities. This category’s unrealized losses are primarily the result of interest rate fluctuations.  Since the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired.  Also, the majority of the Company’s mortgage-backed securities are agency securities, which have a government guarantee.

State and political subdivisions. This category’s unrealized losses are primarily the result of interest rate fluctuations and also a certain few ratings downgrades brought about by the impact of the economic downturn on states and political subdivisions. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment.  Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.

Corporate debt securities. The Company’s unrealized losses in corporate debt securities are related to both interest rate fluctuations and ratings downgrades for a limited number of securities. The majority of the securities remain investment grade and the Company’s analysis did not indicate the existence of a credit loss.  The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.

During each quarter, the Company conducts an assessment of the securities portfolio for OTTI consideration.  The assessment considers factors such as external credit ratings, delinquency coverage ratios, market price, management’s judgment, expectations of future performance, and relevant industry research and analysis.  An impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell).  If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss.  Based on the assessment for the quarter ended March  31, 2015, and in accordance with the guidance, no OTTI was recognized.

The following table presents the amortized cost and estimated fair value of securities as of March 31, 2015 and December 31, 2014, by contractual maturity (dollars in thousands).  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2015				December 31, 2014
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	20,599	$	20,763	$	19,345	$	19,434
Due after one year through five years		49,747		51,522		41,545		43,070
Due after five years through ten years		295,577		304,936		306,900		314,044
Due after ten years		691,236		712,443		707,445		725,566
Total securities available for sale	$	1,057,159	$	1,089,664	$	1,075,235	$	1,102,114

Securities with a market value of $402.3 million and $397.0 million as of March  31, 2015 and December 31, 2014, respectively, were pledged to secure public deposits, repurchase agreements, and for other purposes.

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ACQUISITIONS

3 Months Ended

Mar. 31, 2015

ACQUISITIONS [Abstract]

ACQUISITIONS

2.ACQUISITIONS

The Company’s merger and acquisition strategy focuses on high-growth areas with strong market demographics and targets organizations that have a comparable corporate culture, strong performance, and good asset quality, among other factors.  On January 1, 2014, the Company completed the acquisition of StellarOne, a bank holding company based in Charlottesville, Virginia, in an all-stock transaction.  StellarOne’s common shareholders received 0.9739 shares of the Company’s common stock in exchange for each share of StellarOne’s common stock, resulting in the Company issuing 22,147,874shares of common stock at a fair value of $549.5 million.  The fair value of assets acquired equaled $2.96 billion and liabilities assumed equaled $2.64 billion. As a result of the transaction, StellarOne’s former bank subsidiary, StellarOne Bank, became a wholly owned bank subsidiary of the Company.  On May 9, 2014, StellarOne Bank was merged with and into the Bank.Information regarding this acquisition is included in the Company’s 2014 Annual Report on Form 10-K. The Company did not complete any acquisitions of businesses in the first quarter of 2015.

The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the three months ended March 31, 2015 and 2014 (dollars in thousands):

	For the Three Months Ended March 31,
	2015		2014
Loans	$	639	$	(546)
Core deposit intangible		(2,222)		(2,616)
Borrowings		137		75
Time deposits		1,075		2,920
Net impact to income before taxes	$	(371)	$	(167)

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2015

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

14.SUBSEQUENT EVENTS

Subsequent to quarter-end the Company performed a review of the investment portfolio and the related classification of securities.  In connection with this review, management determined that the Company has the ability and the intent to hold certain municipal securities to their contractual maturity.  On April 30, 2015, the Company reclassified certain municipal securities with an amortized cost of $193.6 million and a fair value of $202.8 million from available for sale to held-to-maturity.  The reclassification will be accounted for in accordance with the guidance established in ASC 320, Investments – Debt and Equity Securities.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2015

FAIR VALUE MEASUREMENTS [Abstract]

FAIR VALUE MEASUREMENTS

10.FAIR VALUE MEASUREMENTS

The Company follows ASC 820, Fair Value Measurements and Disclosures,  to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants.

ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable.  Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions.  The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows:

Level 1	Valuation is based on quoted prices in active markets for identical assets and liabilities.
Level 2	Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets.
Level 3	Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort.

The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements.

Derivative instruments

As discussed in Note 8 “Derivatives”, the Company records derivative instruments at fair value on a recurring basis.  The Company utilizes derivative instruments as part of the management of interest rate risk to modify the re-pricing characteristics of certain portions of the Company’s interest-bearing assets and liabilities.  The Company has contracted with a third party vendor to provide valuations for derivatives using standard valuation techniques and therefore classifies such valuations as Level 2.  Third party valuations are validated by the Company using Bloomberg Valuation Service’s derivative pricing functions.  The Company has considered counterparty credit risk in the valuation of its derivative assets and has considered its own credit risk in the valuation of its derivative liabilities.

During the ordinary course of business, the Company enters into interest rate lock commitments related to the origination of mortgage loans held for sale as well as best effort forward delivery commitments to mitigate interest rate risk; these instruments are recorded at estimated fair value based on the value of the underlying loan, which in turn is based on quoted prices for similar loans in the secondary market.  However, this value is adjusted by a pull-through rate which considers the likelihood that the loan in a lock position will ultimately close.  The pull-through rate is derived from the Company’s internal data and is adjusted using significant management judgment.  The pull-through rate is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock.  As such, interest rate lock commitments are classified as Level 3.  An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitment derivative will result in positive fair value adjustments while a decrease in the pull-through rate will result in a negative fair value adjustment.The Company’s weighted average pull-through rate was approximately 80% as of March 31, 2015 and approximately 90% as of December 31, 2014.  As of March  31, 2015, the interest rate lock commitmentsare recorded as a component of “Other Assets”  and the best effort forward delivery commitments are recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets.

Securities available for sale

Securities available for sale are recorded at fair value on a recurring basis.  Fair value measurement is based upon quoted market prices, when available (Level 1).  If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2).  If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity, then the security would fall to the lowest level of the hierarchy (Level 3).

The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2.  The Company has contracted with a third party portfolio accounting service vendor for valuation of its securities portfolio.  The vendor’s primary source for security valuation is Interactive Data Corporation (“IDC”), which evaluates securities based on market data.  IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information.  Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs.

The vendor utilizes proprietary valuation matrices for valuing all municipals securities.  The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk.  The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves.

The Company uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations.  Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source.  No material differences were identified during the validation as of March  31, 2015 and December 31, 2014.  

The carrying value of restricted Federal Reserve Bank and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the following table.

The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 (dollars in thousands):

	Fair Value Measurements at March 31, 2015 using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Securities available for sale:
U.S. government and agency securities	$	-	$	8,595	$	-	$	8,595
Obligations of states and political subdivisions		-		452,438		-		452,438
Corporate bonds		-		78,141		-		78,141
Mortgage-backed securities		-		540,463		-		540,463
Other securities		-		10,027		-		10,027
Derivatives:
Interest rate swap		-		4,684		-		4,684
Cash flow hedges		-		1,185		-		1,185
Interest rate lock commitments		-		-		1,271		1,271
LIABILITIES
Derivatives:
Interest rate swap	$	-	$	4,684	$	-	$	4,684
Cash flow hedges		-		10,854		-		10,854
Best effort forward delivery commitments		-		-		367		367

		Fair Value Measurements at December 31, 2014 using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Securities available for sale:
U.S. government and agency securities	$	-	$	8,454	$	-	$	8,454
Obligations of states and political subdivisions		-		445,647		-		445,647
Corporate bonds		-		78,680		-		78,680
Mortgage-backed securities		-		559,329		-		559,329
Other securities		-		10,004		-		10,004
Derivatives:
Interest rate swap		-		2,681		-		2,681
Cash flow hedges		-		580		-		580
Interest rate lock commitments		-		-		513		513
LIABILITIES
Derivatives:
Interest rate swap	$	-	$	2,681	$	-	$	2,681
Cash flow hedges		-		8,433		-		8,433

Certain assets are measured at fair value on a nonrecurring basis in accordance with U.S. GAAP.  Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets.

The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements.

Loans held for sale

Loans held for sale are carried at the lower of cost or market value.  These loans currently consist of residential loans originated for sale in the secondary market.  Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2).  As such, the Company records any fair value adjustments on a nonrecurring basis.  Nonrecurring fair value adjustments of $17,000 and $44,000 were recorded on loans held for sale during the three months ended March 31, 2015 and 2014, respectively.  Gains and losses on the sale of loans are recorded within the mortgage segment and are reported on a separate line item in the Company’s Consolidated Statements of Income.

Impaired loans

Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected.  The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral.  Collateral dependent loans are reported at the fair value of the underlying collateral if repayment is solely from the underlying value of the collateral.  Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate.  The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data.  When evaluating the fair value, management may discount the appraisal further if, based on their understanding of the market conditions, it is determined the collateral is further impaired below the appraised value (Level 3).  The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data.  Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3).  Collateral dependent impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis.  Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Company’s Consolidated Statements of Income.

Other real estate owned

OREO is evaluated for impairment at least quarterly by the Bank’s Special Asset Loan Committee and any necessary write downs to fair values are recorded as impairment and included as a component of noninterest expense.  Fair values of OREO are carried at fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral.  When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as Level 3 valuation. 

Total valuation expenses related to OREO properties for the three months ended March 31, 2015 and 2014 totaled $590,000and $256,000, respectively.

The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at March 31, 2015 and December 31, 2014 (dollars in thousands):

		Fair Value Measurements at March 31, 2015 using
	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1			Level 2		Level 3		Balance
ASSETS
Loans held for sale	$		-	$	46,048	$	-	$	46,048
Impaired loans			-		-		12,621		12,621
Other real estate owned			-		-		25,434		25,434

		Fair Value Measurements at December 31, 2014 using
	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1			Level 2		Level 3		Balance
ASSETS
Loans held for sale	$		-	$	42,519	$	-	$	42,519
Impaired loans			-		-		15,797		15,797
Other real estate owned			-		-		28,118		28,118

The following table displays quantitative information about Level 3 Fair Value Measurements at March 31, 2015 (dollars in thousands):

	Fair Value Measurements at March 31, 2015
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Real Estate - Owner Occupied	$	4,524	Market comparables	Discount applied to market comparables (1)	37%
Commercial Real Estate - Non-Owner Occupied		3,860	Market comparables	Discount applied to market comparables (1)	0%
Single Family Investment Real Estate		1,220	Market comparables	Discount applied to market comparables (1)	5%
Commercial and Industrial		2,011	Market comparables	Discount applied to market comparables (1)	11%
Other (2)		1,006	Market comparables	Discount applied to market comparables (1)	5%
Total Impaired Loans		12,621
Other real estate owned		25,434	Market comparables	Discount applied to market comparables (1)	31%
Total	$	38,055
(1)  A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.
(2)  The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.

The following table displays quantitative information about Level 3 Fair Value Measurements at December 31, 2014 (dollars in thousands):

	Fair Value Measurements at December 31, 2014
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Real Estate - Owner Occupied	$	3,304	Market comparables	Discount applied to market comparables (1)	34%
Commercial Real Estate - Non-Owner Occupied		7,828	Market comparables	Discount applied to market comparables (1)	1%
Raw Land and Lots		431	Market comparables	Discount applied to market comparables (1)	16%
Single Family Investment Real Estate		1,366	Market comparables	Discount applied to market comparables (1)	14%
Commercial and Industrial		339	Market comparables	Discount applied to market comparables (1)	45%
Other (2)		2,529	Market comparables	Discount applied to market comparables (1)	6%
Total Impaired Loans		15,797
Other real estate owned		28,118	Market comparables	Discount applied to market comparables (1)	32%
Total	$	43,915
(1)A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.
(2)The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.

ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements.  Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

Cash and cash equivalents

For those short-term instruments, the carrying amount is a reasonable estimate of fair value.

Loans

The fair value of performing loans is estimated by discounting expected future cash flows using a yield curve that is constructed by adding a loan spread to a market yield curve.  Loan spreads are based on spreads currently observed in the market for loans of similar type and structure.  Fair value for impaired loans and their respective level within the fair value hierarchy, are described in the previous disclosure related to fair value measurements of assets that are measured on a nonrecurring basis.

Bank owned life insurance

The carrying value of bank owned life insurance approximates fair value.  The Company records these policies at their cash surrender value, which is estimated using information provided by insurance carriers.

Deposits

The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date.  The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities.

Borrowings

The carrying value of the Company’s repurchase agreements is a reasonable estimate of fair value.  Other borrowings are discounted using the current yield curve for the same type of borrowing.  For borrowings with embedded optionality, a third party source is used to value the instrument. The Company validates all third party valuations for borrowings with optionality using Bloomberg’s derivative pricing functions.

Accrued interest

The carrying amounts of accrued interest approximate fair value.

Commitments to extend credit and standby letters of credit

The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates.  The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date.  At March  31, 2015 and December 31, 2014, the fair value of loan commitments and standby letters of credit was immaterial.

The carrying values and estimated fair values of the Company’s financial instruments at March 31, 2015 and December 31, 2014 are as follows (dollars in thousands):

							Fair Value Measurements at March 31, 2015 using
						Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
			Carrying Value			Level 1			Level 2		Level 3		Balance
ASSETS
Cash and cash equivalents			$	137,362		$		137,362	$	-	$	-	$	137,362
Securities available for sale				1,089,664				-		1,089,664		-		1,089,664
Restricted stock				53,146				-		53,146		-		53,146
Loans held for sale				46,048				-		46,048		-		46,048
Net loans				5,356,778				-		-		5,381,792		5,381,792
Derivatives:
Interest rate lock commitments				1,271				-		-		1,271		1,271
Interest rate swap				4,684				-		4,684		-		4,684
Cash flow hedges				1,185				-		1,185		-		1,185
Accrued interest receivable				22,313				-		22,313		-		22,313
Bank owned life insurance				140,143				-		140,143		-		140,143
LIABILITIES
Deposits	$				5,670,228	$		-	$	5,669,754	$	-	$	5,669,754
Borrowings		674,348						-		653,782		-		653,782
Accrued interest payable		1,818						-		1,818		-		1,818
Derivatives:
Best effort forward delivery commitments		367						-		-		367		367
Interest rate swap		4,684						-		4,684		-		4,684
Cash flow hedges		10,854						-		10,854		-		10,854

			Fair Value Measurements at December 31, 2014 using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Balance
ASSETS
Cash and cash equivalents	$	133,260	$	133,260	$	-	$	-	$	133,260
Securities available for sale		1,102,114		-		1,102,114		-		1,102,114
Restricted stock		54,854		-		54,854		-		54,854
Loans held for sale		42,519		-		42,519		-		42,519
Net loans		5,313,612		-		-		5,340,759		5,340,759
Derivatives:
Interest rate lock commitments		513		-		-		513		513
Interest rate swap		2,681		-		2,681		-		2,681
Cash flow hedges		580		-		580		-		580
Accrued interest receivable		21,775		-		21,775		-		21,775
Bank owned life insurance		139,005		-		139,005		-		139,005
LIABILITIES
Deposits	$	5,638,770	$	-	$	5,637,929	$	-	$	5,637,929
Borrowings		686,935		-		666,224		-		666,224
Accrued interest payable		1,899		-		1,899		-		1,899
Derivatives:
Interest rate swap		2,681		-		2,681		-		2,681
Cash flow hedges		8,433		-		8,433		-		8,433

The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations.  As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company.  Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk.  However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment.  Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment.  Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk.

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SUBSEQUENT EVENTS (Narrative) (Details) (Subsequent Event [Member], USD $) In Millions, unless otherwise specified	Apr. 30, 2015
Subsequent Event [Member]
Subsequent Event [Line Items]
Reclassified municipal securities, fair value	$ 202.8
Reclassified municipal securities, amortized cost	$ 193.6

XML

BORROWINGS

3 Months Ended

Mar. 31, 2015

BORROWINGS [Abstract]

BORROWINGS

6.BORROWINGS

Short-term Borrowings

The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Total short-term borrowings consist primarily of advances from the FHLB, federal funds purchased (which are secured overnight borrowings from other financial institutions), and other lines of credit. Also included in total short-term borrowings are securities sold under agreements to repurchase, which are secured transactions with customers and generally mature the day following the date sold. The market value of securities pledged as collateral for customer repurchase agreements totaled $53.7 million and $51.8 million as of March 31, 2015 and December 31, 2014, respectively. Total short-term borrowings consist of the following as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31,		December 31,
	2015		2014
Securities sold under agreements to repurchase	$	39,434	$	44,393
Other short-term borrowings		335,000		343,000
Total short-term borrowings	$	374,434	$	387,393
Maximum month-end outstanding balance	$	374,434	$	387,393
Average outstanding balance during the period		379,604		237,896
Average interest rate during the period		0.27%		0.24%
Average interest rate at end of period		0.26%		0.31%
Other short-term borrowings:
Federal funds purchased	$	-	$	-
FHLB		325,000		335,000
Other lines of credit		10,000		8,000

The Bank maintains federal funds lines with several correspondent banks; the remaining available balance was $175.0 million and $150.0 million at March  31, 2015 and December 31, 2014, respectively.  The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with these lines and is considered to be in compliance with these covenants.  Additionally, the Company had a collateral dependent line of credit with the FHLB of up to $1.5 billion and $1.4billion at March  31, 2015 and December 31, 2014, respectively. 

Long-term Borrowings

In connection with two bank acquisitions prior to 2006, the Company issued trust preferred capital notes to fund the cash portion of those acquisitions, collectively totaling $58.5 million.  In connection with the acquisition of StellarOne, the Company acquired trust preferred capital notes totaling $32.0 million with a remaining fair value discount of $7.2 million at March 31, 2015.  The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. 

	Principal		Investment(1)		Spread to 3-Month LIBOR	Rate	Maturity
Trust Preferred Capital Note - Statutory Trust I	$	22,500,000	$	696,000	2.75%	3.02%	6/17/2034
Trust Preferred Capital Note - Statutory Trust II		36,000,000		1,114,000	1.40%	1.67%	6/15/2036
VFG Limited Liability Trust I Indenture		20,000,000		619,000	2.73%	3.00%	3/18/2034
FNB Statutory Trust II Indenture		12,000,000		372,000	3.10%	3.37%	6/26/2033
Total	$	90,500,000	$	2,801,000
(1)reported as “Other Assets” within the Consolidated Balance Sheets

As part of a prior acquisition, the Company assumed subordinated debt with terms of LIBOR plus 1.45%  and a maturity date of April 2016.  At March  31, 2015, the carrying value of the subordinated debt was $17.5 million, with a remaining fair value discount of $530,000.  

On August 23, 2012, the Company modified its fixed rate FHLB advances to floating rate advances,  which resulted in reducing the Company’s FHLB borrowing costs.  In connection with this modification, the Company incurred a prepayment penalty of $19.6 million on the original advances, which is included as a component of long-term borrowings in the Company’s Consolidated Balance Sheets.  In accordance with ASC 470-50, Modifications and Extinguishments, the Company will amortize this prepayment penalty over the term of the modified advances using the effective rate method.  The amortization expense is included as a component of interest expense on long-term borrowings in the Company’s Consolidated Statements of Income.  Amortization expense for the three months ended March  31, 2015 and 2014 was $447,000 and $436,000, respectively.

In connection with the StellarOne acquisition, the Company assumed $70.0 million in long-term borrowings with the FHLB that had a remaining fair value premium of $1.9 million at March 31, 2015. 

As of March 31, 2015, the Company had advances from the FHLB consisting of the following (dollars in thousands):

Long-term Type	Spread to 3-Month LIBOR	Interest Rate	Maturity Date	Advance Amount
Adjustable Rate Credit	0.44%	0.71%	8/23/2022	$	55,000
Adjustable Rate Credit	0.45%	0.72%	11/23/2022		65,000
Adjustable Rate Credit	0.45%	0.72%	11/23/2022		10,000
Adjustable Rate Credit	0.45%	0.72%	11/23/2022		10,000
Fixed Rate	-	3.62%	11/28/2017		10,000
Fixed Rate	-	3.44%	7/28/2015		10,000
Fixed Rate	-	3.75%	7/30/2018		5,000
Fixed Rate	-	3.97%	7/30/2018		5,000
Fixed Rate Hybrid	-	2.11%	10/5/2016		25,000
Fixed Rate Hybrid	-	0.91%	7/25/2016		15,000
				$	210,000

As of December 31, 2014, the Company had advances from the FHLB consisting of the following (dollars in thousands):

Long-term Type	Spread to 3-Month LIBOR	Interest Rate	Maturity Date	Advance Amount
Adjustable Rate Credit	0.44%	0.70%	8/23/2022	$	55,000
Adjustable Rate Credit	0.45%	0.71%	11/23/2022		65,000
Adjustable Rate Credit	0.45%	0.71%	11/23/2022		10,000
Adjustable Rate Credit	0.45%	0.71%	11/23/2022		10,000
Fixed Rate	-	3.62%	11/28/2017		10,000
Fixed Rate	-	3.44%	7/28/2015		10,000
Fixed Rate	-	3.75%	7/30/2018		5,000
Fixed Rate	-	3.97%	7/30/2018		5,000
Fixed Rate Hybrid	-	2.11%	10/5/2016		25,000
Fixed Rate Hybrid	-	0.91%	7/25/2016		15,000
				$	210,000

The carrying value of the loans and securities pledged as collateral for FHLB advances totaled $1.7 billion and $1.6 billion as of March  31, 2015 and December 31, 2014, respectively.

As of March 31, 2015, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands):

	Trust Preferred Capital Notes		Subordinated Debt		FHLB Advances		Fair Value Premium (Discount)		Prepayment Penalty		Total Long-term Borrowings
Remaining nine months in 2015	$	-	$	-	$	10,000	$	100	$	(1,384)	$	8,716
2016		-		17,500		40,000		271		(1,882)		55,889
2017		-		-		10,000		170		(1,922)		8,248
2018		-		-		10,000		(143)		(1,970)		7,887
2019		-		-		-		(286)		(2,018)		(2,304)
2020		-		-		-		(301)		(2,074)		(2,375)
Thereafter		93,301		-		140,000		(5,622)		(3,826)		223,853
Total Long-term borrowings	$	93,301	$	17,500	$	210,000	$	(5,811)	$	(15,076)	$	299,914

XML

BORROWINGS (Trust Preferred Capital Notes Qualify for Tier 1 Capital) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Trust preferred capital notes qualify for Tier 1 capital
Investment	$ 82,500,000		$ 84,637,000
Statutory Trust I [Member]
Trust preferred capital notes qualify for Tier 1 capital
Trust preferred capital notes principal balance	22,500,000
Investment	696,000	[1]
Rate	3.02%
Maturity	Jun. 17, 2034
Statutory Trust II [Member]
Trust preferred capital notes qualify for Tier 1 capital
Trust preferred capital notes principal balance	36,000,000
Investment	1,114,000	[1]
Rate	1.67%
Maturity	Jun. 15, 2036
VFG Limited Liability Trust I Indenture [Member]
Trust preferred capital notes qualify for Tier 1 capital
Trust preferred capital notes principal balance	20,000,000
Investment	619,000	[1]
Rate	3.00%
Maturity	Mar. 18, 2034
FNB Statutory Trust II Indenture [Member]
Trust preferred capital notes qualify for Tier 1 capital
Trust preferred capital notes principal balance	12,000,000
Investment	372,000	[1]
Rate	3.37%
Maturity	Jun. 26, 2033
Trust Preferred Capital Notes [Member]
Trust preferred capital notes qualify for Tier 1 capital
Trust preferred capital notes principal balance	90,500,000
Investment	$ 2,801,000	[1]
LIBOR [Member] | Statutory Trust I [Member]
Trust preferred capital notes qualify for Tier 1 capital
Spread on 3-Month LIBOR	2.75%
LIBOR [Member] | Statutory Trust II [Member]
Trust preferred capital notes qualify for Tier 1 capital
Spread on 3-Month LIBOR	1.40%
LIBOR [Member] | VFG Limited Liability Trust I Indenture [Member]
Trust preferred capital notes qualify for Tier 1 capital
Spread on 3-Month LIBOR	2.73%
LIBOR [Member] | FNB Statutory Trust II Indenture [Member]
Trust preferred capital notes qualify for Tier 1 capital
Spread on 3-Month LIBOR	3.10%

[1] reported as “Other Assets” within the Consolidated Balance Sheets

XML

LOANS AND ALLOWANCE FOR LOAN LOSSES

3 Months Ended

Mar. 31, 2015

LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]

LOANS AND ALLOWANCE FOR LOAN LOSSES

4.LOANS AND ALLOWANCE FOR LOAN LOSSES

Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31,		December 31,
	2015		2014
Commercial:
Commercial Construction	$	358,436	$	341,280
Commercial Real Estate - Owner Occupied		898,222		875,443
Commercial Real Estate - Non-Owner Occupied		1,518,590		1,509,159
Raw Land and Lots		197,759		211,225
Single Family Investment Real Estate		416,984		412,494
Commercial and Industrial		426,490		393,776
Other Commercial		80,416		81,106
Consumer:
Mortgage		466,804		478,151
Consumer Construction		65,898		74,168
Indirect Auto		203,369		199,411
Indirect Marine		43,643		43,190
HELOCs		491,116		500,579
Credit Card		24,691		24,225
Other Consumer		195,337		201,789
Total	$	5,387,755	$	5,345,996

The following table shows the aging of the Company’s loan portfolio, by class, at March 31, 2015 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing			PCI		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	374	$	-		$	-	$	3,090	$	1,953	$	353,019	$	358,436
Commercial Real Estate - Owner Occupied		1,606		174			1,357		31,004		4,954		859,127		898,222
Commercial Real Estate - Non-Owner Occupied		1,344		656			328		19,575		2,655		1,494,032		1,518,590
Raw Land and Lots		235		58			109		6,055		1,059		190,243		197,759
Single Family Investment Real Estate		1,206		158			251		16,299		1,302		397,768		416,984
Commercial and Industrial		1,453		271			468		3,338		2,540		418,420		426,490
Other Commercial		281		71			65		1,794		69		78,136		80,416
Consumer:
Mortgage		13,710		1,862			3,313		6,381		2,397		439,141		466,804
Consumer Construction		717		700			469		504		-		63,508		65,898
Indirect Auto		1,345		181			272		-		-		201,571		203,369
Indirect Marine		52		-			-		-		48		43,543		43,643
HELOCs		3,014		1,119			685		1,889		205		484,204		491,116
Credit Card		114		64			265		-		-		24,248		24,691
Other Consumer		2,138		1,907			350		1,417		203		189,322		195,337
Total	$	27,589	$	7,221		$	7,932	$	91,346	$	17,385	$	5,236,282	$	5,387,755

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2014 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing		PCI		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	815	$	-	$	-	$	3,782	$	968	$	335,715	$	341,280
Commercial Real Estate - Owner Occupied		621		1,542		1,683		31,167		1,060		839,370		875,443
Commercial Real Estate - Non-Owner Occupied		3,984		237		91		28,869		5,902		1,470,076		1,509,159
Raw Land and Lots		145		44		194		7,427		2,359		201,056		211,225
Single Family Investment Real Estate		2,825		338		734		16,879		2,070		389,648		412,494
Commercial and Industrial		1,250		529		549		3,855		3,286		384,307		393,776
Other Commercial		42		2		-		2,256		74		78,732		81,106
Consumer:
Mortgage		12,851		4,300		4,095		7,394		2,485		447,026		478,151
Consumer Construction		120		-		844		516		-		72,688		74,168
Indirect Auto		1,593		263		317		-		-		197,238		199,411
Indirect Marine		150		-		-		-		201		42,839		43,190
HELOCs		3,082		955		820		2,000		258		493,464		500,579
Credit Card		232		108		219		-		-		23,666		24,225
Other Consumer		1,587		412		501		1,643		592		197,054		201,789
Total	$	29,297	$	8,730	$	10,047	$	105,788	$	19,255	$	5,172,879	$	5,345,996

Nonaccrual loans totaled $17.4 million and $19.3 million at March 31, 2015 and December 31, 2014, respectively.  All nonaccrual loans were included in the impaired loan disclosures in 2015 and 2014.  Loans past due 90 days or more and accruing interest totaled $7.9 million and $10.0 million at March 31, 2015 and December 31, 2014, respectively.

The following table shows the PCI commercial and consumer loan portfolios, by class and their delinquency status, at March 31, 2015 (dollars in thousands):

	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Construction	$	-	$	599	$	2,491	$	3,090
Commercial Real Estate - Owner Occupied		1,357		1,966		27,681		31,004
Commercial Real Estate - Non-Owner Occupied		747		321		18,507		19,575
Raw Land and Lots		155		259		5,641		6,055
Single Family Investment Real Estate		1,721		697		13,881		16,299
Commercial and Industrial		214		174		2,950		3,338
Other Commercial		66		803		925		1,794
Consumer:
Mortgage		1,123		2,574		2,684		6,381
Consumer Construction		-		504		-		504
HELOCs		146		527		1,216		1,889
Other Consumer		87		37		1,293		1,417
Total	$	5,616	$	8,461	$	77,269	$	91,346

The following table shows the PCI commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2014 (dollars in thousands):

	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Construction	$	-	$	652	$	3,130	$	3,782
Commercial Real Estate - Owner Occupied		1,138		843		29,186		31,167
Commercial Real Estate - Non-Owner Occupied		523		1,255		27,091		28,869
Raw Land and Lots		522		-		6,905		7,427
Single Family Investment Real Estate		1,327		1,311		14,241		16,879
Commercial and Industrial		144		538		3,173		3,855
Other Commercial		107		1,133		1,016		2,256
Consumer:
Mortgage		1,975		2,866		2,553		7,394
Consumer Construction		-		516		-		516
HELOCs		356		728		916		2,000
Other Consumer		89		171		1,383		1,643
Total	$	6,181	$	10,013	$	89,594	$	105,788

The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually.  The following table shows the Company’s impaired loans, excluding PCI loans related to the StellarOne acquisition, by class at March 31, 2015 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	6,242	$	6,517	$	-	$	6,320	$	52
Commercial Real Estate - Owner Occupied		17,435		17,590		-		16,580		199
Commercial Real Estate - Non-Owner Occupied		13,488		15,638		-		16,086		124
Raw Land and Lots		41,245		41,513		-		41,561		490
Single Family Investment Real Estate		3,874		4,574		-		4,271		36
Commercial and Industrial		2,889		3,427		-		3,204		26
Other Commercial		949		955		-		957		14
Consumer:
Mortgage		3,234		3,342		-		3,312		15
Indirect Auto		-		6		-		3		-
HELOCs		465		598		-		543		1
Other Consumer		86		206		-		153		-
Total impaired loans without a specific allowance	$	89,907	$	94,366	$	-	$	92,990	$	957
Loans with a specific allowance
Commercial:
Commercial Construction	$	40	$	40	$	4	$	37	$	-
Commercial Real Estate - Owner Occupied		7,142		7,257		526		7,177		67
Commercial Real Estate - Non-Owner Occupied		6,284		6,284		146		7,408		96
Raw Land and Lots		628		628		11		700		8
Single Family Investment Real Estate		3,537		3,562		281		3,552		38
Commercial and Industrial		4,340		7,610		459		4,443		37
Other Commercial		336		356		31		348		5
Consumer:
Mortgage		1,390		1,428		105		1,398		3
Consumer Construction		378		378		35		378		5
Indirect Marine		48		149		4		59		-
HELOCs		436		436		4		436		4
Other Consumer		290		409		98		390		1
Total impaired loans with a specific allowance	$	24,849	$	28,537	$	1,704	$	26,326	$	264
Total impaired loans	$	114,756	$	122,903	$	1,704	$	119,316	$	1,221

The following table shows the Company’s impaired loans, by class, at December 31, 2014 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	5,281	$	5,367	$	-	$	5,755	$	165
Commercial Real Estate - Owner Occupied		15,722		16,430		-		16,774		737
Commercial Real Estate - Non-Owner Occupied		22,917		22,917		-		23,209		1,116
Raw Land and Lots		44,790		47,662		-		47,988		2,124
Single Family Investment Real Estate		4,197		4,881		-		6,534		170
Commercial and Industrial		4,453		7,933		-		5,070		121
Other Commercial		1,536		1,538		-		1,624		90
Consumer:
Mortgage		1,571		1,582		-		1,583		58
Indirect Auto		-		6		-		4		-
Indirect Marine		201		505		-		281		-
HELOCs		559		699		-		573		8
Other Consumer		89		208		-		107		-
Total impaired loans without a specific allowance	$	101,316	$	109,728	$	-	$	109,502	$	4,589
Loans with a specific allowance
Commercial:
Commercial Construction	$	570	$	570	$	51	$	506	$	13
Commercial Real Estate - Owner Occupied		5,951		5,999		355		5,946		280
Commercial Real Estate - Non-Owner Occupied		10,575		10,572		2,017		10,823		474
Raw Land and Lots		1,343		1,373		98		1,472		59
Single Family Investment Real Estate		4,125		4,144		562		4,293		159
Commercial and Industrial		2,938		3,009		582		3,125		138
Other Commercial		359		378		32		442		29
Consumer:
Mortgage		3,323		3,375		481		3,381		60
Consumer Construction		375		375		34		373		19
Indirect Marine		192		192		5		199		15
HELOCs		434		434		4		436		17
Other Consumer		679		706		310		686		19
Total impaired loans with a specific allowance	$	30,864	$	31,127	$	4,531	$	31,682	$	1,282
Total impaired loans	$	132,180	$	140,855	$	4,531	$	141,184	$	5,871

The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties.  TDRs totaled $24.1 million and  $26.8 million as of March 31, 2015 and December 31, 2014, respectively.  All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology and are included in the preceding impaired loan tables.  For the quarter ended March  31, 2015, the recorded investment in restructured loans prior to modifications was not materially impacted by the modification.

The following table provides a summary, by class, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed on nonaccrual status, which are considered to be nonperforming, as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31, 2015					December 31, 2014
	No. of Loans	Recorded Investment		Outstanding Commitment		No. of Loans	Recorded Investment		Outstanding Commitment
Performing
Commercial:
Commercial Construction	1	$	296	$	-	1	$	707	$	-
Commercial Real Estate - Owner Occupied	3		674		-	3		682		-
Commercial Real Estate - Non-Owner Occupied	3		3,352		-	3		3,362		-
Raw Land and Lots	6		14,377		-	9		14,777		-
Single Family Investment Real Estate	5		934		-	6		1,046		-
Commercial and Industrial	10		683		-	9		722		-
Other Commercial	1		172		-	1		191		-
Consumer:
Mortgage	6		753		-	7		1,244		-
Other Consumer	3		95		-	3		98		-
Total performing	38	$	21,336	$	-	42	$	22,829	$	-
Nonperforming
Commercial:
Commercial Construction	1	$	253	$	-	1	$	253	$	-
Commercial Real Estate - Owner Occupied	2		149		-	2		153		-
Commercial Real Estate - Non-Owner Occupied	1		539		-	1		539		-
Raw Land and Lots	1		116		-	2		1,053		-
Single Family Investment Real Estate	1		211		-	1		433		-
Commercial and Industrial	5		603		-	5		616		-
Other Commercial	1		69		-	1		74		-
Consumer:
Mortgage	2		763		-	2		770		-
Other Consumer	1		37		-	1		57		-
Total nonperforming	15	$	2,740	$	-	16	$	3,948	$	-
Total performing and nonperforming	53	$	24,076	$	-	58	$	26,777	$	-

The Company considers a default of a restructured loan to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs.  During the three months ended March  31, 2015 and 2014, the Company did not identify any restructured loans that went into default that had been restructured in the twelve-month period prior to default. 

The following table shows, by class and modification type, TDRs that occurred during the three months ended March 31, 2015 and 2014 (dollars in thousands):

	Three months ended			Three months ended
	March 31, 2015			March 31, 2014
	No. of Loans	Recorded Investment at Period End		No. of Loans	Recorded Investment at Period End
Term modification, at a market rate
Commercial:
Commercial Real Estate - Owner Occupied	-	$	-	1	$	2,732
Single Family Investment Real Estate	-		-	1		113
Commercial and Industrial	1		19	-		-
Other Commercial	-		-	2		296
Total loan term extended at a market rate	1	$	19	4	$	3,141
Total	1	$	19	4	$	3,141

The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by portfolio segment for the three months ended and as of March 31, 2015.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Commercial		Consumer		Total
Allowance for loan losses:
Balance, beginning of the year	$	22,352	$	10,032	$	32,384
Recoveries credited to allowance		292		380		672
Loans charged off		(2,962)		(867)		(3,829)
Provision charged to operations		2,106		(356)		1,750
Balance, end of period	$	21,788	$	9,189	$	30,977
Ending Balance, ALL:
Loans individually evaluated for impairment	$	1,458	$	246	$	1,704
Loans collectively evaluated for impairment		20,330		8,943		29,273
Loans acquired with deteriorated credit quality		-		-		-
Total	$	21,788	$	9,189	$	30,977
Ending Balance, Loans:
Loans individually evaluated for impairment	$	107,956	$	6,149	$	114,105
Loans collectively evaluated for impairment		3,707,786		1,474,518		5,182,304
Loans acquired with deteriorated credit quality		81,155		10,191		91,346
Total	$	3,896,897	$	1,490,858	$	5,387,755

The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by portfolio segment for the three months ended and as of March 31, 2014.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Commercial		Consumer		Total
Allowance for loan losses:
Balance, beginning of the year	$	19,908	$	10,227	$	30,135
Recoveries credited to allowance		1,408		251		1,659
Loans charged off		(307)		(580)		(887)
Provision charged to operations		(843)		843		-
Balance, end of period	$	20,166	$	10,741	$	30,907
Ending Balance, ALL:
Loans individually evaluated for impairment	$	1,266	$	468	$	1,734
Loans collectively evaluated for impairment		18,900		10,273		29,173
Loans acquired with deteriorated credit quality		-		-		-
Total	$	20,166	$	10,741	$	30,907
Ending Balance, Loans:
Loans individually evaluated for impairment	$	109,756	$	6,972	$	116,728
Loans collectively evaluated for impairment		3,533,488		1,485,551		5,019,039
Loans acquired with deteriorated credit quality		120,291		18,140		138,431
Total	$	3,763,535	$	1,510,663	$	5,274,198

The Company uses the past due status and delinquency trends as the primary credit quality indicator for the consumer loan portfolio segment while a risk rating system is utilized for commercial loans.  Commercial loans are graded on a scale of 1 through 9.  A general description of the characteristics of the risk grades follows: 

· Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents;

· Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety;

· Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment;

· Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan;

· Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay;

· Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position;

· Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected;

· Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; and

· Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted.

The following table shows the recorded investment in all loans, excluding PCI loans, in the commercial portfolios by class with their related risk rating current as of March 31, 2015 (dollars in thousands):

	1-3		4		5		6		7		8		Total
Commercial Construction	$	32,325	$	295,831	$	12,537	$	10,730	$	3,923	$	-	$	355,346
Commercial Real Estate - Owner Occupied		185,029		644,950		12,608		6,289		18,342		-		867,218
Commercial Real Estate - Non-Owner Occupied		368,352		1,059,097		21,457		31,916		18,193		-		1,499,015
Raw Land and Lots		9,550		126,001		11,870		4,577		39,706		-		191,704
Single Family Investment Real Estate		62,254		316,576		8,693		6,311		6,851		-		400,685
Commercial and Industrial		165,924		236,174		10,375		4,133		6,535		11		423,152
Other Commercial		31,446		40,764		3,379		1,748		1,285		-		78,622
Total	$	854,880	$	2,719,393	$	80,919	$	65,704	$	94,835	$	11	$	3,815,742

The following table shows the recorded investment in all loans, excluding PCI loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2014 (dollars in thousands):

	1-3		4		5		6		7		8		Total
Commercial Construction	$	22,512	$	289,064	$	11,932	$	10,906	$	3,084	$	-	$	337,498
Commercial Real Estate - Owner Occupied		185,789		620,587		15,003		7,688		15,209		-		844,276
Commercial Real Estate - Non-Owner Occupied		356,263		1,041,515		22,358		28,388		31,766		-		1,480,290
Raw Land and Lots		11,162		128,281		16,803		4,783		42,769		-		203,798
Single Family Investment Real Estate		59,638		311,900		9,750		6,680		7,647		-		395,615
Commercial and Industrial		138,973		230,084		9,392		4,383		7,089		-		389,921
Other Commercial		31,571		40,913		3,818		844		1,704		-		78,850
Total	$	805,908	$	2,662,344	$	89,056	$	63,672	$	109,268	$	-	$	3,730,248

The following table shows the recorded investment in only PCI loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of March 31, 2015 (dollars in thousands):

	4		5		6		7		8		Total
Commercial Construction	$	-	$	-	$	2,491	$	146	$	453	$	3,090
Commercial Real Estate - Owner Occupied		2,758		3,647		9,042		15,557		-		31,004
Commercial Real Estate - Non-Owner Occupied		3,855		3,597		9,171		2,952		-		19,575
Raw Land and Lots		1,580		585		2,595		1,295		-		6,055
Single Family Investment Real Estate		3,783		2,083		4,661		5,772		-		16,299
Commercial and Industrial		492		13		436		2,371		26		3,338
Other Commercial		69		-		530		1,195		-		1,794
Total	$	12,537	$	9,925	$	28,926	$	29,288	$	479	$	81,155

The following table shows the recorded investment in only PCI loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2014 (dollars in thousands):

	4		5		6		7		8		Total
Commercial Construction	$	-	$	-	$	3,130	$	194	$	458	$	3,782
Commercial Real Estate - Owner Occupied		1,525		3,546		10,880		15,216		-		31,167
Commercial Real Estate - Non-Owner Occupied		2,837		934		18,736		6,362		-		28,869
Raw Land and Lots		1,564		189		3,148		2,526		-		7,427
Single Family Investment Real Estate		2,807		1,253		6,462		6,357		-		16,879
Commercial and Industrial		437		-		913		2,477		28		3,855
Other Commercial		-		-		510		1,746		-		2,256
Total	$	9,170	$	5,922	$	43,779	$	34,878	$	486	$	94,235

Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase.  The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows. 

The following shows changes in the accretable yield for loans accounted for under ASC 310-30 for the periods presented (dollars in thousands):

	For the Three Months ended March 31,
	2015		2014
Balance at beginning of period	$	28,956	$	2,980
Additions		-		34,653
Accretion		(1,501)		(1,846)
Reclass of nonaccretable difference due to improvement in expected cash flows		2,695		-
Other non-credit changes, net (1)		(5,619)		(1,365)
Balance at end of period	$	24,531	$	34,422
(1)This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter.

The carrying value of the Company’s PCI loan portfolio, accounted for under ASC 310-30, totaled $91.3 million at March 31, 2015 and $105.8 million at December 31, 2014.  The outstanding balance of the Company’s PCI loan portfolio totaled $111.6 million at March 31, 2015 and $126.3 million at December 31, 2014.  The carrying value of the Company’s acquired performing loan portfolio, accounted for under ASC 310-20, totaled $1.7 billion at March 31, 2015 and $1.8 billion at December 31, 2014; the remaining discount on these loans totaled $23.8 million and $24.3 million, respectively.

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INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2015

INTANGIBLE ASSETS [Abstract]

INTANGIBLE ASSETS

5.INTANGIBLE ASSETS

The Company’s intangible assets consist of core deposits and goodwill arising from previous acquisitions.  The Company has determined that core deposit intangibles have a finite life and amortizes them over their estimated useful life.Core deposit intangible assets are being amortized over the period of expected benefit, which ranges from 4 to 14 years, using an accelerated method.  On January 1, 2014, the Company completed the acquisition of StellarOne and acquired intangible assets of $29.6 million and recorded $234.1 million of goodwill.    

In accordance with ASC 350, Intangibles-Goodwill and Other, the Company reviews the carrying value of indefinite lived intangible assets at least annually or more frequently if certain impairment indicators exist.  The Company performed its annual impairment testing in the second quarter of 2014 and determined that there was no impairment to its goodwill or intangible assets. Subsequently, the Company determined that an additional evaluation was necessary at year-end due to potential indicators based on the net losses recorded at the mortgage company during 2014. Based on this additional testing, the Company confirmed that no impairment charges to date for goodwill or intangible assets were necessary.

Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands):

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
March 31, 2015
Amortizable core deposit intangibles	$	76,185	$	46,652	$	29,533
December 31, 2014
Amortizable core deposit intangibles	$	76,185	$	44,430	$	31,755
March 31, 2014
Amortizable core deposit intangibles	$	76,185	$	37,250	$	38,935

Amortization expense of core deposit intangibles for the three months ended March 31, 2015 and 2014, and for the year ended December 31, 2014 totaled $2.2 million,$2.6 million, and $9.8 million, respectively.  As of March 31, 2015, the estimated remaining amortization expense of core deposit intangibles is as follows (dollars in thousands):

For the remaining nine months of 2015	$	6,221
For the year ending December 31, 2016		6,932
For the year ending December 31, 2017		5,590
For the year ending December 31, 2018		4,144
For the year ending December 31, 2019		3,093
For the year ending December 31, 2020		2,028
Thereafter		1,525
Total estimated amortization expense	$	29,533

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

7.COMMITMENTS AND CONTINGENCIES

Litigation Matters

In the ordinary course of its operations, the Company and its subsidiaries are parties to various legal proceedings.  Based on the information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in such proceedings, in the aggregate, will not have a material adverse effect on the business, financial condition, or results of operations of the Company.

Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates.  These financial instruments include commitments to extend credit and standby letters of credit.  These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the Company’s Consolidated Balance Sheets.  The contractual amounts of these instruments reflect the extent of the Company’s involvement in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments.  The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.  Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk.  The Company considers credit losses related to off-balance sheet commitments by undergoing a similar process in evaluating losses for loans that are carried on balance sheet.  The Company considers historical loss rates, current economic conditions, risk ratings, and past due status amongst other factors in the consideration of whether credit losses are inherent in the Company’s off-balance sheet commitments to extend credit.  The Company does not expect that credit losses arising from off-balance sheet commitments to have a material adverse impact on the Company’s consolidated financial statements.

Commitments to extend credit are agreements to lend to customers as long as there are no violations of any conditions established in the contracts.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Letters of credit are conditional commitments issued by the Company to guarantee the performance of customers to third parties.  The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

UMG, a wholly owned subsidiary of the Bank, uses rate lock commitments and best efforts contracts during the origination process and for loans held for sale.  These best efforts contracts are designed to mitigate UMG’s exposure to fluctuations in interest rates in connection with rate lock commitments and loans held for sale.  The Company held approximately $2.7 million and $2.6 million in loans available for sale in which the related rate lock commitment had expired as of March 31, 2015 and December 31, 2014, respectively.  At March 31, 2015 and December 31, 2014, the reserves associated with these loans held for sale were $102,000and $104,000, respectively, and are reflected on the balance sheet of the mortgage segment.

The following table presents the balances of commitments and contingencies (dollars in thousands):

	March 31,		December 31,
	2015		2014
Commitments with off-balance sheet risk:
Commitments to extend credit (1)	$	1,674,177	$	1,601,287
Standby letters of credit		113,362		117,988
Mortgage loan rate lock commitments		80,159		49,552
Total commitments with off-balance sheet risk	$	1,867,698	$	1,768,827
Commitments with balance sheet risk:
Loans held for sale	$	46,048	$	42,519
Total other commitments	$	1,913,746	$	1,811,346
(1)Includes unfunded overdraft protection.

The Company must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act.  For the final weekly reporting period in the periods ended March 31, 2015 and December 31, 2014, the aggregate amount of daily average required reserves was approximately $47.1 million and $48.7 million, respectively.

The Company has approximately $18.4 millionin deposits in other financial institutions, of which $5.7 million and $3.5 million serve as collateral for the trust swaps and loan swaps, respectively, as discussed in Note 8 “Derivatives”.  The Company had approximately $8.3 million in deposits in other financial institutions that were uninsured at March 31, 2015.  On an annual basis, the Company’s management evaluates the loss risk of its uninsured deposits in financial counter-parties.

For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify the interest rate characteristics of various balance sheet accounts.  See Note 8 “Derivatives” for additional information.

In the ordinary course of business, the Company records an indemnification reserve relating to mortgage loans previously sold based on historical statistics and loss rates; as of March 31, 2015 and December 31, 2014, the Company’s indemnification reserve for such mortgage loans was $687,000and $662,000, respectively.

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COMMITMENTS AND CONTINGENCIES (Balances of Commitments and Contingencies) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014
Commitments with off-balance sheet risk:
Total commitments with off-balance sheet risk	$ 1,867,698		$ 1,768,827
Commitments with balance sheet risk:
Loans held for sale	46,048		42,519
Total other commitments	1,913,746		1,811,346
Commitments to Extend Credit [Member]
Commitments with off-balance sheet risk:
Total commitments with off-balance sheet risk	1,674,177	[1]	1,601,287	[1]
Standby Letters of Credit [Member]
Commitments with off-balance sheet risk:
Total commitments with off-balance sheet risk	113,362		117,988
Interest Rate Lock Commitments [Member]
Commitments with off-balance sheet risk:
Total commitments with off-balance sheet risk	$ 80,159		$ 49,552

[1] Includes unfunded overdraft protection.

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DERIVATIVES (Summary of the Derivatives) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015 item	Dec. 31, 2014 item
Trust Swaps [Member]
Summary of the derivative designated as a cash flow hedge
Notional Amount	$ 68,000
Cash Flow Hedging [Member]
Summary of the derivative designated as a cash flow hedge
Notional Amount	263,000
Prime Loan Swaps [Member]
Summary of the derivative designated as a cash flow hedge
Notional Amount	55,000
Life (Years)	6 years
Receive fixed - pay floating interest rate swaps [Member] | Cash Flow Hedging [Member]
Summary of the derivative designated as a cash flow hedge
Positions	4	4
Notional Amount	55,000	55,000
Asset	1,185	580
Receive Rate	4.93%	4.93%
Pay Rate	3.55%	3.55%
Life (Years)	4 years 5 months 19 days	4 years 8 months 19 days
Receive fixed - pay floating interest rate swaps [Member] | Interest Rate Swaps [Member]
Summary of the derivative designated as a cash flow hedge
Positions	33	30
Notional Amount	134,496	122,793
Asset	4,684	2,681
Receive Rate	4.28%	4.29%
Pay Rate	2.47%	2.50%
Life (Years)	7 years 1 month 21 days	7 years 1 month 21 days
Pay fixed - receive floating interest rate swaps [Member] | Cash Flow Hedging [Member]
Summary of the derivative designated as a cash flow hedge
Positions	7	7
Notional Amount	208,000	208,000
Asset
Liabilities	10,854	8,433
Receive Rate	0.27%	0.26%
Pay Rate	2.77%	2.77%
Life (Years)	1 year 10 months 17 days	2 years 1 month 13 days
Pay fixed - receive floating interest rate swaps [Member] | Interest Rate Swaps [Member]
Summary of the derivative designated as a cash flow hedge
Positions	33	30
Notional Amount	134,496	122,793
Liabilities	$ 4,684	$ 2,681
Receive Rate	2.47%	2.50%
Pay Rate	4.28%	4.29%
Life (Years)	7 years 1 month 21 days	7 years 1 month 21 days
Minimum [Member] | Trust Swaps [Member]
Summary of the derivative designated as a cash flow hedge
Life (Years)	3 years
Maximum [Member] | Trust Swaps [Member]
Summary of the derivative designated as a cash flow hedge
Life (Years)	6 years

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COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Loans available for sale in which the related rate lock commitment expired	$ 2,700,000	$ 2,600,000
Valuation reserve on aged loans held for sale in which the related rate lock commitment expired	102,000	104,000
Daily average required reserves	47,100,000	48,700,000
Deposits with other financial institutions	18,400,000
Uninsured deposits with other financial institutions	8,300,000
Indemnification reserves	687,000	662,000
Trust Swaps [Member]
Deposits with other financial institutions serves as collateral	5,700,000
Interest Rate Swaps [Member]
Deposits with other financial institutions serves as collateral	$ 3,500,000

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2015

STOCK-BASED COMPENSATION [Abstract]

Summary of Shares Available in Each Plan

The following table summarizes the shares granted and available in the 2011 Plan as of March 31, 2015; there were no shares granted or available under the Amended and Restated SIP as of March 31, 2015 because the Amended and Restated SIP was not effective as of such date.

	2011 Plan
Beginning Authorization	1,000,000
Granted	(600,641)
Remaining available for grant	399,359

Summary of Stock Option Activity

The following table summarizes the stock option activity for the three months ended March 31, 2015:

	Number of Stock Options	Weighted Average Exercise Price
Options outstanding, December 31, 2014	389,269	$	16.69
Exercised	(7,686)		17.72
Expired	(13,188)		23.45
Options outstanding, March 31, 2015	368,395		16.42
Options exercisable,  March 31, 2015	263,890		17.47

Summary of Information Concerning Stock Options

The following table summarizes information concerning stock options issued to the Company’s employees that are vested or are expected to vest and stock options exercisable as of March 31, 2015:

	Stock Options Vested or Expected to Vest		Exercisable
Stock options (number of shares)		368,361		263,890
Weighted average remaining contractual life in years		5.08		4.62
Weighted average exercise price on shares above water	$	14.36	$	14.63
Aggregate intrinsic value	$	2,471,164	$	1,594,675

Summary of Nonvested Stock Activity

The following table summarizes the restricted stock activity for the quarter ended March 31, 2015:

The following table summarizes the restricted stock activity for the three months ended March 31, 2015and does not include restricted stock activity under the Amended and Restated SIP:
	Number of Shares of Restricted Stock	Weighted Average Grant-Date Fair Value
Balance, December 31, 2014	287,120	$	20.07
Granted	81,414		22.01
Net settle for taxes	(9,869)		21.58
Vested	(30,401)		16.03
Forfeited	(4,419)		19.68
Balance, March 31, 2015	323,845		21.20

Estimated Unamortized Compensation Expense Recognized in Future

The estimated unamortized compensation expense, net of estimated forfeitures, related to nonvested stock and stock options issued and outstanding as of March 31, 2015 that will be recognized in future periods is as follows (dollars in thousands):

	Stock Options		Restricted Stock		Total
For the remaining nine months of 2015	$	155	$	1,275	$	1,430
For year ending December 31, 2016		130		1,586		1,716
For year ending December 31, 2017		15		899		914
For year ending December 31, 2018		-		495		495
For year ending December 31, 2019		-		70		70
Total	$	300	$	4,325	$	4,625

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LOANS AND ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Allowance for loan losses:
Balance, beginning of the year	$ 32,384	$ 30,135
Recoveries credited to allowance	672	1,659
Loans charged off	(3,829)	(887)
Provision charged to operations	1,750
Balance, end of period	30,977	30,907
Ending balance: individually evaluated for impairment	1,704	1,734
Ending balance: collectively evaluated for impairment	29,273	29,173
Total	30,977	30,907
Loans:
Ending balance: individually evaluated for impairment	114,105	116,728
Ending balance: collectively evaluated for impairment	5,182,304	5,019,039
Ending balance: loans acquired with deteriorated credit quality	91,346	138,431	105,788
Total loans	5,387,755	5,274,198	5,345,996
Commercial [Member]
Allowance for loan losses:
Balance, beginning of the year	22,352	19,908
Recoveries credited to allowance	292	1,408
Loans charged off	(2,962)	(307)
Provision charged to operations	2,106	(843)
Balance, end of period	21,788	20,166
Ending balance: individually evaluated for impairment	1,458	1,266
Ending balance: collectively evaluated for impairment	20,330	18,900
Total	21,788	20,166
Loans:
Ending balance: individually evaluated for impairment	107,956	109,756
Ending balance: collectively evaluated for impairment	3,707,786	3,533,488
Ending balance: loans acquired with deteriorated credit quality	81,155	120,291	94,235
Total loans	3,896,897	3,763,535
Consumer [Member]
Allowance for loan losses:
Balance, beginning of the year	10,032	10,227
Recoveries credited to allowance	380	251
Loans charged off	(867)	(580)
Provision charged to operations	(356)	843
Balance, end of period	9,189	10,741
Ending balance: individually evaluated for impairment	246	468
Ending balance: collectively evaluated for impairment	8,943	10,273
Total	9,189	10,741
Loans:
Ending balance: individually evaluated for impairment	6,149	6,972
Ending balance: collectively evaluated for impairment	1,474,518	1,485,551
Ending balance: loans acquired with deteriorated credit quality	10,191	18,140
Total loans	$ 1,490,858	$ 1,510,663

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2015

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

12.EARNINGS PER SHARE

Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares outstanding attributable to stock awards. 

There were approximately 159,460 and 212,306 shares underlying anti-dilutive awards for the three months endedMarch 31, 2015 and 2014, respectively. Anti-dilutive awards were excluded from the calculation of diluted EPS.

The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three months ended March 31, 2015 and 2014 (in thousands except per share data):

	Net Income Available to Common Shareholders (Numerator)		Weighted Average Common Shares (Denominator)	Per Share Amount
For the three months ended March 31, 2015
Net income, basic	$	15,701	45,106	$	0.35
Add: potentially dilutive common shares - stock awards		-	82		-
Diluted	$	15,701	45,188	$	0.35
For the three months ended March 31, 2014
Net income, basic	$	7,708	46,977	$	0.16
Add: potentially dilutive common shares - stock awards		-	103		-
Diluted	$	7,708	47,080	$	0.16

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SECURITIES (Tables)

3 Months Ended

Mar. 31, 2015

SECURITIES [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of March 31, 2015 and December 31, 2014 are summarized as follows (dollars in thousands):

	Amortized		Gross Unrealized				Estimated
	Cost		Gains		(Losses)		Fair Value
March 31, 2015
U.S. government and agency securities	$	8,236	$	359	$	-	$	8,595
Obligations of states and political subdivisions		431,355		21,594		(511)		452,438
Corporate bonds		78,400		169		(428)		78,141
Mortgage-backed securities		529,188		11,729		(454)		540,463
Other securities		9,980		47		-		10,027
Total securities	$	1,057,159	$	33,898	$	(1,393)	$	1,089,664
December 31, 2014
U.S. government and agency securities	$	8,313	$	166	$	(25)	$	8,454
Obligations of states and political subdivisions		427,483		18,885		(721)		445,647
Corporate bonds		78,744		244		(308)		78,680
Mortgage-backed securities		550,716		9,411		(798)		559,329
Other securities		9,979		31		(6)		10,004
Total securities	$	1,075,235	$	28,737	$	(1,858)	$	1,102,114

Schedule of Gross Unrealized Losses and Fair Value of Investments

The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired.  These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
March 31, 2015
Obligations of states and political subdivisions	$	18,293	$	(265)	$	12,469	$	(246)	$	30,762	$	(511)
Mortgage-backed securities		41,164		(130)		37,794		(324)		78,958		(454)
Corporate bonds and other securities		18,617		(178)		18,758		(250)		37,375		(428)
Totals	$	78,074	$	(573)	$	69,021	$	(820)	$	147,095	$	(1,393)
December 31, 2014
U.S. government and agency securities	$	7,055	$	(25)	$	-	$	-	$	7,055	$	(25)
Obligations of states and political subdivisions		13,602		(93)		42,514		(628)		56,116		(721)
Mortgage-backed securities		60,151		(362)		49,581		(436)		109,732		(798)
Corporate bonds and other securities		43,923		(244)		4,309		(70)		48,232		(314)
Totals	$	124,731	$	(724)	$	96,404	$	(1,134)	$	221,135	$	(1,858)

Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of securities as of March 31, 2015 and December 31, 2014, by contractual maturity (dollars in thousands).  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2015				December 31, 2014
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	20,599	$	20,763	$	19,345	$	19,434
Due after one year through five years		49,747		51,522		41,545		43,070
Due after five years through ten years		295,577		304,936		306,900		314,044
Due after ten years		691,236		712,443		707,445		725,566
Total securities available for sale	$	1,057,159	$	1,089,664	$	1,075,235	$	1,102,114

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LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015 loan	Dec. 31, 2014 loan
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	53	58
Recorded Investment	$ 24,076	$ 26,777
Outstanding Commitment
Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	38	42
Recorded Investment	21,336	22,829
Outstanding Commitment
Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	15	16
Recorded Investment	2,740	3,948
Outstanding Commitment
Commercial Construction [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	1	1
Recorded Investment	296	707
Outstanding Commitment
Commercial Construction [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	1	1
Recorded Investment	253	253
Outstanding Commitment
Commercial Real Estate - Owner Occupied [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	3	3
Recorded Investment	674	682
Outstanding Commitment
Commercial Real Estate - Owner Occupied [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	2	2
Recorded Investment	149	153
Outstanding Commitment
Commercial Real Estate - Non-Owner Occupied [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	3	3
Recorded Investment	3,352	3,362
Outstanding Commitment
Commercial Real Estate - Non-Owner Occupied [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	1	1
Recorded Investment	539	539
Outstanding Commitment
Raw Land and Lots [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	6	9
Recorded Investment	14,377	14,777
Outstanding Commitment
Raw Land and Lots [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	1	2
Recorded Investment	116	1,053
Outstanding Commitment
Single Family Investment Real Estate [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	5	6
Recorded Investment	934	1,046
Outstanding Commitment
Single Family Investment Real Estate [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	1	1
Recorded Investment	211	433
Outstanding Commitment
Commercial and Industrial [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	10	9
Recorded Investment	683	722
Outstanding Commitment
Commercial and Industrial [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	5	5
Recorded Investment	603	616
Outstanding Commitment
Other Commercial [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	1	1
Recorded Investment	172	191
Outstanding Commitment
Other Commercial [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	1	1
Recorded Investment	69	74
Outstanding Commitment
Mortgage [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	6	7
Recorded Investment	753	1,244
Outstanding Commitment
Mortgage [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	2	2
Recorded Investment	763	770
Outstanding Commitment
Other Consumer [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	3	3
Recorded Investment	95	98
Outstanding Commitment
Other Consumer [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
No. of Loans	1	1
Recorded Investment	37	57
Outstanding Commitment

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SECURITIES (Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities
Amortized Cost	$ 1,057,159	$ 1,075,235
Gross Unrealized Gains	33,898	28,737
Gross Unrealized (Losses)	(1,393)	(1,858)
Total securities available for sale, Estimated Fair Value	1,089,664	1,102,114
US Government Agencies Debt Securities [Member]
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities
Amortized Cost	8,236	8,313
Gross Unrealized Gains	359	166
Gross Unrealized (Losses)		(25)
Total securities available for sale, Estimated Fair Value	8,595	8,454
Obligations of States and Political Subdivisions [Member]
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities
Amortized Cost	431,355	427,483
Gross Unrealized Gains	21,594	18,885
Gross Unrealized (Losses)	(511)	(721)
Total securities available for sale, Estimated Fair Value	452,438	445,647
Corporate and Other Securities [Member]
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities
Amortized Cost	78,400	78,744
Gross Unrealized Gains	169	244
Gross Unrealized (Losses)	(428)	(308)
Total securities available for sale, Estimated Fair Value	78,141	78,680
Mortgage Backed Securities [Member]
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities
Amortized Cost	529,188	550,716
Gross Unrealized Gains	11,729	9,411
Gross Unrealized (Losses)	(454)	(798)
Total securities available for sale, Estimated Fair Value	540,463	559,329
Other Securities [Member]
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities
Amortized Cost	9,980	9,979
Gross Unrealized Gains	47	31
Gross Unrealized (Losses)		(6)
Total securities available for sale, Estimated Fair Value	$ 10,027	$ 10,004

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 15,701	$ 7,708
Other comprehensive income (loss):
Change in fair value of cash flow hedges	(1,490)	575
Reclassification adjustment for losses included in net income (net of taxes of $146 and $25 for the three months ended March 31, 2015 and 2014, respectively)	272	47
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during period (net of taxes of $2,037 and $3,399 for the three months ended March 31, 2015 and 2014, respectively)	3,783	6,313
Reclassification adjustment for (gains) losses included in net income (net of taxes of $68 and $10 for the three months ended March 31, 2015 and 2014, respectively)	(125)	(19)
Other comprehensive income (loss)	2,440	6,916
Comprehensive income	$ 18,141	$ 14,624

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ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2015

ACCOUNTING POLICIES [Abstract]

ACCOUNTING POLICIES

1. ACCOUNTING POLICIES

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  Significant inter-company accounts and transactions have been eliminated in consolidation.

The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and follow general practice within the banking industry.  Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by U.S. GAAP for complete financial statements.  However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of the interim periods presented have been made.  The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year.

These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K.  If needed, certain previously reported amounts have been reclassified to conform to current period presentation. 

Adoption of New Accounting Standards

The Company adopted ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects” as of January 1, 2015.  As permitted by the guidance, the Company adopted the proportional amortization method of accounting for qualified affordable housing projects.  The proportional amortization method amortizes the cost of the investment over the period in which the Company will receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of income taxes attributable to continuing operations.  Historically, these investments were accounted for under the equity method of accounting and the passive losses related to the investments were recognized within noninterest expense.  The Company adopted this guidance in the first quarter of 2015 with retrospective application as required by the ASU.  Prior period results and related metrics have been recasted to conform to this presentation.  The recast of prior period information did not have a material impact on the Company’s financial condition or results of operations.

For the three months ended March 31, 2015, the Company recognized amortization of $175,000 and tax credits of $257,000 associated with these investments within “Income taxexpense” on the Company’s Consolidated Statements of Income.  The carrying value of the Company’s investments in these qualified affordable housing projects was $9.8 million and $10.4 million as of March 31, 2015 and December 31, 2014, respectively.  The Company recorded a liability of $5.1 million for the related unfunded commitments as of March 31, 2015, which are expected to be paid from 2015 to 2018.

Recent Accounting Pronouncements

In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.”  The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions.  Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item.  If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item.  The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.”  The amendments in this ASU amend the consolidation requirements in ASC 810, Consolidation, and significantly change the consolidation analysis required under U.S. GAAP.  Under this guidance, limited partnerships will be considered variable interest entities (“VIEs”) unless the limited partners have either substantive kick-out or participating rights; this amendment will result in more partnerships being considered VIEs, but it will be less likely that a general partner will consolidate a limited partnership.  The amendments also change the effect that fees paid to a decision maker or service provider have on the consolidation analysis; it is less likely that the fees themselves will be considered a variable interest, that an entity will be a VIE, or that consolidation will result.  The changes modify how a reporting entity considers how its variable interests affect its consolidation process; the related party tiebreaker test and mandatory consolidation by one of the related parties will have to be performed less frequently than under current U.S. GAAP.  For entities other than limited partnerships, the amendments clarify how to determine whether the equity holders have power over the entity and could affect whether the entity is a VIE.  The amendments are expected to result in the deconsolidation of many entities.  The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  The Company is currently assessing the impact that ASU 2015-02 will have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.”  The ASU does not change the existing recognition and measurement guidance for debt issuance costs but requires that debt issuance costs related to a debt liability recorded on the balance sheet be present in the balance sheet as a direct deduction from the carrying amount of that debt liability.  The amendments should be disclosed consistent with the disclosure requirement of a change in accounting principle and applied on a retrospective basis.  This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  Early adoption is permitted.  The Company does not expect the adoption of ASU 2015-03 to have a material impact on its consolidated financial statements.

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BORROWINGS (Narrative) (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Securities pledged as collateral for customer repurchase agreements	$ 53,700,000	$ 51,800,000
Remaining available balance for the federal funds lines	175,000,000	150,000,000
Maximum collateral dependent line of credit with the FHLB	1,500,000,000	1,400,000,000
Prepayment penalty	19,600,000
Prepayment penalty amortization expense	447,000	436,000
Carrying value of the loans and securities pledged as collateral for FHLB	1,700,000,000	1,600,000,000
Acquisitions, Prior To 2006 [Member]
Number of bank acquisitions	2
Trust preferred capital notes principal balance	58,500,000
Remaining fair value discount on subordinated debt	530,000
Subordinated debt interest rate basis	LIBOR plus 1.45%
Subordinated debt maturity date	Apr. 01, 2016
Subordinated debt	17,500,000
LIBOR [Member] | Acquisitions, Prior To 2006 [Member]
Spread on 3-Month LIBOR	1.45%
StellarOne Bank [Member]
Trust preferred capital notes principal balance	32,000,000
Remaining fair value discount on acquired trust preferred capital notes	7,200,000
Loans from Other Federal Home Loan Banks	70,000,000
Remaining fair value premium on acquired FHLB advances	$ 1,900,000

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SEGMENT REPORTING DISCLOSURES (Narrative) (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Number of reportable segments	2
Number of retail locations	131
Number of subsidiary bank	1
Warehouse Line of Credit [Member] | LIBOR [Member]
Segment Reporting Information [Line Items]
Spread on 3-Month LIBOR	0.15%	1.50%
Mortgage banking segment interest - floor	0.00%	2.00%

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FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015 item	Mar. 31, 2014	Dec. 31, 2014
FAIR VALUE MEASUREMENTS [Abstract]
Weighted average pull through rate	80.00%		90.00%
Minimum number of market participants	4,000
Nonrecurring fair value adjustments recorded on loans held for sale	$ 17,000	$ 44,000
Total valuation expenses related to OREO properties	$ 590,000	$ 256,000

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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2015

LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]

Loans Stated at Face Amount, Net of Unearned Income

Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31,		December 31,
	2015		2014
Commercial:
Commercial Construction	$	358,436	$	341,280
Commercial Real Estate - Owner Occupied		898,222		875,443
Commercial Real Estate - Non-Owner Occupied		1,518,590		1,509,159
Raw Land and Lots		197,759		211,225
Single Family Investment Real Estate		416,984		412,494
Commercial and Industrial		426,490		393,776
Other Commercial		80,416		81,106
Consumer:
Mortgage		466,804		478,151
Consumer Construction		65,898		74,168
Indirect Auto		203,369		199,411
Indirect Marine		43,643		43,190
HELOCs		491,116		500,579
Credit Card		24,691		24,225
Other Consumer		195,337		201,789
Total	$	5,387,755	$	5,345,996

Summary of Aging of the Loan Portfolio by Class

The following table shows the aging of the Company’s loan portfolio, by class, at March 31, 2015 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing			PCI		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	374	$	-		$	-	$	3,090	$	1,953	$	353,019	$	358,436
Commercial Real Estate - Owner Occupied		1,606		174			1,357		31,004		4,954		859,127		898,222
Commercial Real Estate - Non-Owner Occupied		1,344		656			328		19,575		2,655		1,494,032		1,518,590
Raw Land and Lots		235		58			109		6,055		1,059		190,243		197,759
Single Family Investment Real Estate		1,206		158			251		16,299		1,302		397,768		416,984
Commercial and Industrial		1,453		271			468		3,338		2,540		418,420		426,490
Other Commercial		281		71			65		1,794		69		78,136		80,416
Consumer:
Mortgage		13,710		1,862			3,313		6,381		2,397		439,141		466,804
Consumer Construction		717		700			469		504		-		63,508		65,898
Indirect Auto		1,345		181			272		-		-		201,571		203,369
Indirect Marine		52		-			-		-		48		43,543		43,643
HELOCs		3,014		1,119			685		1,889		205		484,204		491,116
Credit Card		114		64			265		-		-		24,248		24,691
Other Consumer		2,138		1,907			350		1,417		203		189,322		195,337
Total	$	27,589	$	7,221		$	7,932	$	91,346	$	17,385	$	5,236,282	$	5,387,755

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2014 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing		PCI		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	815	$	-	$	-	$	3,782	$	968	$	335,715	$	341,280
Commercial Real Estate - Owner Occupied		621		1,542		1,683		31,167		1,060		839,370		875,443
Commercial Real Estate - Non-Owner Occupied		3,984		237		91		28,869		5,902		1,470,076		1,509,159
Raw Land and Lots		145		44		194		7,427		2,359		201,056		211,225
Single Family Investment Real Estate		2,825		338		734		16,879		2,070		389,648		412,494
Commercial and Industrial		1,250		529		549		3,855		3,286		384,307		393,776
Other Commercial		42		2		-		2,256		74		78,732		81,106
Consumer:
Mortgage		12,851		4,300		4,095		7,394		2,485		447,026		478,151
Consumer Construction		120		-		844		516		-		72,688		74,168
Indirect Auto		1,593		263		317		-		-		197,238		199,411
Indirect Marine		150		-		-		-		201		42,839		43,190
HELOCs		3,082		955		820		2,000		258		493,464		500,579
Credit Card		232		108		219		-		-		23,666		24,225
Other Consumer		1,587		412		501		1,643		592		197,054		201,789
Total	$	29,297	$	8,730	$	10,047	$	105,788	$	19,255	$	5,172,879	$	5,345,996

Purchased Impaired Commercial and Consumer Loan Portfolios by Class

The following table shows the PCI commercial and consumer loan portfolios, by class and their delinquency status, at March 31, 2015 (dollars in thousands):

	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Construction	$	-	$	599	$	2,491	$	3,090
Commercial Real Estate - Owner Occupied		1,357		1,966		27,681		31,004
Commercial Real Estate - Non-Owner Occupied		747		321		18,507		19,575
Raw Land and Lots		155		259		5,641		6,055
Single Family Investment Real Estate		1,721		697		13,881		16,299
Commercial and Industrial		214		174		2,950		3,338
Other Commercial		66		803		925		1,794
Consumer:
Mortgage		1,123		2,574		2,684		6,381
Consumer Construction		-		504		-		504
HELOCs		146		527		1,216		1,889
Other Consumer		87		37		1,293		1,417
Total	$	5,616	$	8,461	$	77,269	$	91,346

The following table shows the PCI commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2014 (dollars in thousands):

	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Construction	$	-	$	652	$	3,130	$	3,782
Commercial Real Estate - Owner Occupied		1,138		843		29,186		31,167
Commercial Real Estate - Non-Owner Occupied		523		1,255		27,091		28,869
Raw Land and Lots		522		-		6,905		7,427
Single Family Investment Real Estate		1,327		1,311		14,241		16,879
Commercial and Industrial		144		538		3,173		3,855
Other Commercial		107		1,133		1,016		2,256
Consumer:
Mortgage		1,975		2,866		2,553		7,394
Consumer Construction		-		516		-		516
HELOCs		356		728		916		2,000
Other Consumer		89		171		1,383		1,643
Total	$	6,181	$	10,013	$	89,594	$	105,788

Impaired Loans by Class

The following table shows the Company’s impaired loans, excluding PCI loans related to the StellarOne acquisition, by class at March 31, 2015 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	6,242	$	6,517	$	-	$	6,320	$	52
Commercial Real Estate - Owner Occupied		17,435		17,590		-		16,580		199
Commercial Real Estate - Non-Owner Occupied		13,488		15,638		-		16,086		124
Raw Land and Lots		41,245		41,513		-		41,561		490
Single Family Investment Real Estate		3,874		4,574		-		4,271		36
Commercial and Industrial		2,889		3,427		-		3,204		26
Other Commercial		949		955		-		957		14
Consumer:
Mortgage		3,234		3,342		-		3,312		15
Indirect Auto		-		6		-		3		-
HELOCs		465		598		-		543		1
Other Consumer		86		206		-		153		-
Total impaired loans without a specific allowance	$	89,907	$	94,366	$	-	$	92,990	$	957
Loans with a specific allowance
Commercial:
Commercial Construction	$	40	$	40	$	4	$	37	$	-
Commercial Real Estate - Owner Occupied		7,142		7,257		526		7,177		67
Commercial Real Estate - Non-Owner Occupied		6,284		6,284		146		7,408		96
Raw Land and Lots		628		628		11		700		8
Single Family Investment Real Estate		3,537		3,562		281		3,552		38
Commercial and Industrial		4,340		7,610		459		4,443		37
Other Commercial		336		356		31		348		5
Consumer:
Mortgage		1,390		1,428		105		1,398		3
Consumer Construction		378		378		35		378		5
Indirect Marine		48		149		4		59		-
HELOCs		436		436		4		436		4
Other Consumer		290		409		98		390		1
Total impaired loans with a specific allowance	$	24,849	$	28,537	$	1,704	$	26,326	$	264
Total impaired loans	$	114,756	$	122,903	$	1,704	$	119,316	$	1,221

The following table shows the Company’s impaired loans, by class, at December 31, 2014 (dollars in thousands):

	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	5,281	$	5,367	$	-	$	5,755	$	165
Commercial Real Estate - Owner Occupied		15,722		16,430		-		16,774		737
Commercial Real Estate - Non-Owner Occupied		22,917		22,917		-		23,209		1,116
Raw Land and Lots		44,790		47,662		-		47,988		2,124
Single Family Investment Real Estate		4,197		4,881		-		6,534		170
Commercial and Industrial		4,453		7,933		-		5,070		121
Other Commercial		1,536		1,538		-		1,624		90
Consumer:
Mortgage		1,571		1,582		-		1,583		58
Indirect Auto		-		6		-		4		-
Indirect Marine		201		505		-		281		-
HELOCs		559		699		-		573		8
Other Consumer		89		208		-		107		-
Total impaired loans without a specific allowance	$	101,316	$	109,728	$	-	$	109,502	$	4,589
Loans with a specific allowance
Commercial:
Commercial Construction	$	570	$	570	$	51	$	506	$	13
Commercial Real Estate - Owner Occupied		5,951		5,999		355		5,946		280
Commercial Real Estate - Non-Owner Occupied		10,575		10,572		2,017		10,823		474
Raw Land and Lots		1,343		1,373		98		1,472		59
Single Family Investment Real Estate		4,125		4,144		562		4,293		159
Commercial and Industrial		2,938		3,009		582		3,125		138
Other Commercial		359		378		32		442		29
Consumer:
Mortgage		3,323		3,375		481		3,381		60
Consumer Construction		375		375		34		373		19
Indirect Marine		192		192		5		199		15
HELOCs		434		434		4		436		17
Other Consumer		679		706		310		686		19
Total impaired loans with a specific allowance	$	30,864	$	31,127	$	4,531	$	31,682	$	1,282
Total impaired loans	$	132,180	$	140,855	$	4,531	$	141,184	$	5,871

Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement

The following table provides a summary, by class, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed on nonaccrual status, which are considered to be nonperforming, as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	March 31, 2015					December 31, 2014
	No. of Loans	Recorded Investment		Outstanding Commitment		No. of Loans	Recorded Investment		Outstanding Commitment
Performing
Commercial:
Commercial Construction	1	$	296	$	-	1	$	707	$	-
Commercial Real Estate - Owner Occupied	3		674		-	3		682		-
Commercial Real Estate - Non-Owner Occupied	3		3,352		-	3		3,362		-
Raw Land and Lots	6		14,377		-	9		14,777		-
Single Family Investment Real Estate	5		934		-	6		1,046		-
Commercial and Industrial	10		683		-	9		722		-
Other Commercial	1		172		-	1		191		-
Consumer:
Mortgage	6		753		-	7		1,244		-
Other Consumer	3		95		-	3		98		-
Total performing	38	$	21,336	$	-	42	$	22,829	$	-
Nonperforming
Commercial:
Commercial Construction	1	$	253	$	-	1	$	253	$	-
Commercial Real Estate - Owner Occupied	2		149		-	2		153		-
Commercial Real Estate - Non-Owner Occupied	1		539		-	1		539		-
Raw Land and Lots	1		116		-	2		1,053		-
Single Family Investment Real Estate	1		211		-	1		433		-
Commercial and Industrial	5		603		-	5		616		-
Other Commercial	1		69		-	1		74		-
Consumer:
Mortgage	2		763		-	2		770		-
Other Consumer	1		37		-	1		57		-
Total nonperforming	15	$	2,740	$	-	16	$	3,948	$	-
Total performing and nonperforming	53	$	24,076	$	-	58	$	26,777	$	-

Schedule of TDR by Class and Modification Type

The following table shows, by class and modification type, TDRs that occurred during the three months ended March 31, 2015 and 2014 (dollars in thousands):

	Three months ended			Three months ended
	March 31, 2015			March 31, 2014
	No. of Loans	Recorded Investment at Period End		No. of Loans	Recorded Investment at Period End
Term modification, at a market rate
Commercial:
Commercial Real Estate - Owner Occupied	-	$	-	1	$	2,732
Single Family Investment Real Estate	-		-	1		113
Commercial and Industrial	1		19	-		-
Other Commercial	-		-	2		296
Total loan term extended at a market rate	1	$	19	4	$	3,141
Total	1	$	19	4	$	3,141

Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology

The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by portfolio segment for the three months ended and as of March 31, 2015.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Commercial		Consumer		Total
Allowance for loan losses:
Balance, beginning of the year	$	22,352	$	10,032	$	32,384
Recoveries credited to allowance		292		380		672
Loans charged off		(2,962)		(867)		(3,829)
Provision charged to operations		2,106		(356)		1,750
Balance, end of period	$	21,788	$	9,189	$	30,977
Ending Balance, ALL:
Loans individually evaluated for impairment	$	1,458	$	246	$	1,704
Loans collectively evaluated for impairment		20,330		8,943		29,273
Loans acquired with deteriorated credit quality		-		-		-
Total	$	21,788	$	9,189	$	30,977
Ending Balance, Loans:
Loans individually evaluated for impairment	$	107,956	$	6,149	$	114,105
Loans collectively evaluated for impairment		3,707,786		1,474,518		5,182,304
Loans acquired with deteriorated credit quality		81,155		10,191		91,346
Total	$	3,896,897	$	1,490,858	$	5,387,755

The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by portfolio segment for the three months ended and as of March 31, 2014.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Commercial		Consumer		Total
Allowance for loan losses:
Balance, beginning of the year	$	19,908	$	10,227	$	30,135
Recoveries credited to allowance		1,408		251		1,659
Loans charged off		(307)		(580)		(887)
Provision charged to operations		(843)		843		-
Balance, end of period	$	20,166	$	10,741	$	30,907
Ending Balance, ALL:
Loans individually evaluated for impairment	$	1,266	$	468	$	1,734
Loans collectively evaluated for impairment		18,900		10,273		29,173
Loans acquired with deteriorated credit quality		-		-		-
Total	$	20,166	$	10,741	$	30,907
Ending Balance, Loans:
Loans individually evaluated for impairment	$	109,756	$	6,972	$	116,728
Loans collectively evaluated for impairment		3,533,488		1,485,551		5,019,039
Loans acquired with deteriorated credit quality		120,291		18,140		138,431
Total	$	3,763,535	$	1,510,663	$	5,274,198

Loans Receivables Related Risk Rating Excluding Purchased Impaired Loans

The following table shows the recorded investment in all loans, excluding PCI loans, in the commercial portfolios by class with their related risk rating current as of March 31, 2015 (dollars in thousands):

	1-3		4		5		6		7		8		Total
Commercial Construction	$	32,325	$	295,831	$	12,537	$	10,730	$	3,923	$	-	$	355,346
Commercial Real Estate - Owner Occupied		185,029		644,950		12,608		6,289		18,342		-		867,218
Commercial Real Estate - Non-Owner Occupied		368,352		1,059,097		21,457		31,916		18,193		-		1,499,015
Raw Land and Lots		9,550		126,001		11,870		4,577		39,706		-		191,704
Single Family Investment Real Estate		62,254		316,576		8,693		6,311		6,851		-		400,685
Commercial and Industrial		165,924		236,174		10,375		4,133		6,535		11		423,152
Other Commercial		31,446		40,764		3,379		1,748		1,285		-		78,622
Total	$	854,880	$	2,719,393	$	80,919	$	65,704	$	94,835	$	11	$	3,815,742

The following table shows the recorded investment in all loans, excluding PCI loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2014 (dollars in thousands):

	1-3		4		5		6		7		8		Total
Commercial Construction	$	22,512	$	289,064	$	11,932	$	10,906	$	3,084	$	-	$	337,498
Commercial Real Estate - Owner Occupied		185,789		620,587		15,003		7,688		15,209		-		844,276
Commercial Real Estate - Non-Owner Occupied		356,263		1,041,515		22,358		28,388		31,766		-		1,480,290
Raw Land and Lots		11,162		128,281		16,803		4,783		42,769		-		203,798
Single Family Investment Real Estate		59,638		311,900		9,750		6,680		7,647		-		395,615
Commercial and Industrial		138,973		230,084		9,392		4,383		7,089		-		389,921
Other Commercial		31,571		40,913		3,818		844		1,704		-		78,850
Total	$	805,908	$	2,662,344	$	89,056	$	63,672	$	109,268	$	-	$	3,730,248

Loans Receivables Related Risk Rating Including Purchased Impaired Loans

The following table shows the recorded investment in only PCI loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of March 31, 2015 (dollars in thousands):

	4		5		6		7		8		Total
Commercial Construction	$	-	$	-	$	2,491	$	146	$	453	$	3,090
Commercial Real Estate - Owner Occupied		2,758		3,647		9,042		15,557		-		31,004
Commercial Real Estate - Non-Owner Occupied		3,855		3,597		9,171		2,952		-		19,575
Raw Land and Lots		1,580		585		2,595		1,295		-		6,055
Single Family Investment Real Estate		3,783		2,083		4,661		5,772		-		16,299
Commercial and Industrial		492		13		436		2,371		26		3,338
Other Commercial		69		-		530		1,195		-		1,794
Total	$	12,537	$	9,925	$	28,926	$	29,288	$	479	$	81,155

The following table shows the recorded investment in only PCI loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2014 (dollars in thousands):

	4		5		6		7		8		Total
Commercial Construction	$	-	$	-	$	3,130	$	194	$	458	$	3,782
Commercial Real Estate - Owner Occupied		1,525		3,546		10,880		15,216		-		31,167
Commercial Real Estate - Non-Owner Occupied		2,837		934		18,736		6,362		-		28,869
Raw Land and Lots		1,564		189		3,148		2,526		-		7,427
Single Family Investment Real Estate		2,807		1,253		6,462		6,357		-		16,879
Commercial and Industrial		437		-		913		2,477		28		3,855
Other Commercial		-		-		510		1,746		-		2,256
Total	$	9,170	$	5,922	$	43,779	$	34,878	$	486	$	94,235

Schedule of Acquired Loan Portfolio and Accretable Yield

The following shows changes in the accretable yield for loans accounted for under ASC 310-30 for the periods presented (dollars in thousands):

	For the Three Months ended March 31,
	2015		2014
Balance at beginning of period	$	28,956	$	2,980
Additions		-		34,653
Accretion		(1,501)		(1,846)
Reclass of nonaccretable difference due to improvement in expected cash flows		2,695		-
Other non-credit changes, net (1)		(5,619)		(1,365)
Balance at end of period	$	24,531	$	34,422
(1)This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter.

XML

STOCK-BASED COMPENSATION (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Apr. 21, 2015
Defined Benefit Plan Disclosure [Line Items]
Recognized stock-based compensation expense	$ 390,000	$ 374,000
Recognized stock-based compensation expense, net of tax	$ 281,000	$ 270,000
Sharebased compensation allocated expense per common share	$ 0.01	$ 0.01
Restricted stock vesting percentage	50.00%
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Vesting period	3 years
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Vesting period	5 years
2011 Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Maximum number of shares of the Company's common stock issuable under the plan	1,000,000
2011 Plan [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Stock options term from the grant date, maximum	10 years
Amended and Restated Stock and Incentive Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Maximum number of shares of the Company's common stock issuable under the plan			2,500,000

XML

ACQUISITIONS (Narrative) (Details) (StellarOne Bank [Member], USD $)	0 Months Ended
	Jan. 01, 2014	Jan. 01, 2014
StellarOne Bank [Member]
Business Acquisition [Line Items]
Number of shares equivalent to each share of acquired entity	0.9739	0.9739
Number of common shares issued	22,147,874
Value of Company common stock issued	$ 549,500,000
Assets acquired	2,960,000,000	2,960,000,000
Liabilties assumed	$ 2,640,000,000	$ 2,640,000,000

XML

STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2015

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

11.STOCK-BASED COMPENSATION

The Company’s 2011 Stock Incentive Plan (the “2011 Plan”) provides for the granting of stock-based awards to key employees of the Company and its subsidiaries in the form of: (i) incentive stock options intended to comply with the requirements of Section 422 of the Internal Revenue Code of 1986 (“incentive stock options”); (ii) non-qualified stock options; (iii) restricted stock, and (iv) other stock-based awards.  The Company issues new shares to satisfy stock-based awards, and the option price cannot be less than the fair market value of the stock on the grant date.  A stock option’s maximum term is ten years from the date of grant.  No stock options have been granted since February 2012, and restricted stock and other stock-based awards typically vest in varying annual installments over a three to five year vesting schedule.  The 2011 Plan was approved by the Company’s Board of Directors with an effective date of January 1, 2011, subject to shareholder approval that was received at the annual meeting of shareholders held on April 26, 2011.

Based on the recommendation of the Compensation Committee of the Company’s Board of Directors, on January 29, 2015, the Company’s Board of Directors adopted, subject to shareholder approval, the Union Bankshares Corporation Stock and Incentive Plan (the “Amended and Restated SIP”), which amends and restates the 2011 Plan.  The Amended and Restated SIP was approved by the Company’s shareholders and became effective on April 21, 2015.  The Amended and Restated SIP amends the 2011 Plan to, among other things, increase the maximum number of shares of the Company’s common stock issuable under the plan from 1,000,000 to 2,500,000 and add non-employee directors of the Company and certain subsidiaries, as well as regional advisory boards, as potential participants in the plan.

The following table summarizes the shares granted and available in the 2011 Plan as of March 31, 2015; there were no shares granted or available under the Amended and Restated SIP as of March 31, 2015 because the Amended and Restated SIP was not effective as of such date.

	2011 Plan
Beginning Authorization	1,000,000
Granted	(600,641)
Remaining available for grant	399,359

For the three months ended March 31, 2015 and 2014, the Company recognized stock-based compensation expense (included in salaries and benefits expense) of approximately $390,000 and $374,000 ($281,000 and $270,000 net of tax), respectively. Stock-based compensation expense represents approximately $0.01per common share for both the three months ended March 31, 2015 and 2014. 

Stock Options

The following table summarizes the stock option activity for the three months ended March 31, 2015:

	Number of Stock Options	Weighted Average Exercise Price
Options outstanding, December 31, 2014	389,269	$	16.69
Exercised	(7,686)		17.72
Expired	(13,188)		23.45
Options outstanding, March 31, 2015	368,395		16.42
Options exercisable,  March 31, 2015	263,890		17.47

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option valuation model.  The model uses variables which include the historical dividend yield of the Company’s common stock, the average contractual life and vesting schedule of the option, the historic volatility of the Company’s common stock price, and the risk-free interest rate at the time the option was granted.  Other than options that were assumed and converted upon completion of the StellarOne merger, the Company has not granted incentive compensation in the form of options since February 2012.

The following table summarizes information concerning stock options issued to the Company’s employees that are vested or are expected to vest and stock options exercisable as of March 31, 2015:

	Stock Options Vested or Expected to Vest		Exercisable
Stock options (number of shares)		368,361		263,890
Weighted average remaining contractual life in years		5.08		4.62
Weighted average exercise price on shares above water	$	14.36	$	14.63
Aggregate intrinsic value	$	2,471,164	$	1,594,675

Restricted Stock

The 2011 Plan permits the granting of restricted stock awards but is limited to one-third of the aggregate number of total awards granted.  This equity component of compensation is divided between restricted (time-based) stock grants and performance-based stock grants.  Generally, the restricted stock vests 50% on each of the third and fourth anniversaries from the date of the grant.  The performance-based stock is subject to vesting based on achieving certain performance metrics; the grant of performance-based stock is subject to approval by the Company’s Compensation Committee at its sole discretion.  The value of the restricted stock awards was calculated by multiplying the fair market value of the Company’s common stock on grant date by the number of shares awarded.  Employees have the right to vote the shares and to receive cash or stock dividends (restricted stock), if any, except for the nonvested stock under the performance-based component (performance stock). Nonvested shares of restricted stock are included in the computation of basic earnings per share. The following table summarizes the restricted stock activity for the quarter ended March 31, 2015:

The following table summarizes the restricted stock activity for the three months ended March 31, 2015and does not include restricted stock activity under the Amended and Restated SIP:
	Number of Shares of Restricted Stock	Weighted Average Grant-Date Fair Value
Balance, December 31, 2014	287,120	$	20.07
Granted	81,414		22.01
Net settle for taxes	(9,869)		21.58
Vested	(30,401)		16.03
Forfeited	(4,419)		19.68
Balance, March 31, 2015	323,845		21.20

The estimated unamortized compensation expense, net of estimated forfeitures, related to nonvested stock and stock options issued and outstanding as of March 31, 2015 that will be recognized in future periods is as follows (dollars in thousands):

	Stock Options		Restricted Stock		Total
For the remaining nine months of 2015	$	155	$	1,275	$	1,430
For year ending December 31, 2016		130		1,586		1,716
For year ending December 31, 2017		15		899		914
For year ending December 31, 2018		-		495		495
For year ending December 31, 2019		-		70		70
Total	$	300	$	4,325	$	4,625