NOTE 15 – FAIR VALUE MEASUREMENTS

The Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to estimate the fair value at the measurement date in the tables below.


(Dollars in thousands)			Fair Value Measurements Using
Recurring Basis Description	March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Available -for-sale securities	$	1,951,548	$	35,008	$	1,916,540	$	—
Derivative instruments		41,208		—		41,208		—

Total	$	1,992,756	$	35,008	$	1,957,748	$	—


Liabilities
Derivative instruments		34,383		—		34,383		—

Total	$	34,383	$	—	$	34,383	$	—


(Dollars in thousands)			Fair Value Measurements Using
Recurring Basis Description	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Available -for-sale securities	$	1,745,004	$	—	$	1,745,004	$	—
Derivative instruments		42,119		—		42,119		—

Total	$	1,787,123	$	—	$	1,787,123	$	—


Liabilities
Derivative instruments		36,890		—		36,890		—

Total	$	36,890	$	—	$	36,890	$	—

During the first quarter of 2013, available for sale securities with a market value of $35,008,000 at March 31, 2013 were transferred into the Level 1 fair value measurement category in the table above from the Level 2 category as disclosed at December 31, 2012. The securities were included in the Level 1 category at March 31, 2013 because their fair value was based on a quoted market price in an active market for an identical asset.

Gains and losses (realized and unrealized) included in earnings (or changes in net assets) for the first three months of 2013 related to assets and liabilities measured at fair value on a recurring basis are reported in noninterest income or other comprehensive income as follows:


(Dollars in thousands)	Noninterest income			Other comprehensive income
Total gains (losses) included in earnings (or changes in net assets)	$	(3,012	)	$	—

Change in unrealized gains (losses) relating to assets still held at December 31, 2012		—			(468	)

The Company has segregated all financial assets and liabilities that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the tables below.


(Dollars in thousands)			Fair Value Measurements Using
Nonrecurring Basis Description	March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Loans	$	6,295	$	—	$	6,295	$	—
Mortgage loans held for sale		46,966		—		46,966		—
OREO		23,710		—		23,710		—

Total	$	76,971	$	—	$	76,971	$	—


(Dollars in thousands)			Fair Value Measurements Using
Nonrecurring Basis Description	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Loans	$	6,388	$	—	$	6,388	$	—
Mortgage loans held for sale		32,753		—		32,753		—
OREO		20,427		—		20,427		—

Total	$	59,568	$	—	$	59,568	$	—

The tables above exclude the initial measurement of assets and liabilities that were acquired as part of the Florida Gulf, OMNI, Cameron, and Florida Trust Company acquisitions completed in 2012 and 2011. These assets and liabilities were recorded at their fair value upon acquisition in accordance with generally-accepted accounting principles and were not re-measured during the periods presented unless specifically required by generally accepted accounting principles. Acquisition date fair values represent either Level 2 fair value measurements (investment securities, OREO, property, equipment, and debt) or Level 3 fair value measurements (loans, deposits, and core deposit intangible asset).

In accordance with the provisions of ASC Topic 310, the Company records loans considered impaired at their estimated fair value. A loan is considered impaired if it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Fair value is measured at the estimated fair value of the collateral for collateral-dependent loans. Impaired non-covered loans with an outstanding balance of $6,624,000 were recorded at their fair value at March 31, 2013. These loans include a reserve of $329,000 included in the Company’s allowance for credit losses at March 31, 2013. Impaired non-covered loans with an outstanding balance of $7,269,000 were recorded at their fair value at December 31, 2012. These loans include a reserve of $880,000 included in the Company’s allowance for credit losses at December 31, 2012.

The Company did not record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis during the three months ended March 31, 2013 and 2012.

The Company may elect the fair value option, which permits the Company to choose to measure eligible financial assets and liabilities at fair value at specified election dates and recognize prospective changes in unrealized gains and losses on items for which the fair value option has been elected in earnings at each reporting date. The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with generally accepted accounting principles, and as such has not included any gains or losses in earnings for the three months ended March 31, 2013 and 2012.