Talmer Bancorp (TLMR) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 12, 2015
Document and Entity Information
Entity Registrant Name	TALMER BANCORP, INC.
Entity Central Index Key	1,360,683
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		71,140,611
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks		$ 79,357	$ 86,185
Interest-bearing deposits with other banks		161,201	96,551
Federal funds sold and other short-term investments		170,000	71,000
Total cash and cash equivalents		410,558	253,736
Securities available-for-sale		845,319	740,819
Federal Home Loan Bank stock		25,418	20,212
Loans held for sale, at fair value		117,042	93,453
Loans:
Total loans, excluding covered loans		4,244,126	3,902,637
Less: Allowance for loan losses - uncovered		(36,566)	(33,819)
Net loans - excluding covered loans		4,207,560	3,868,818
Covered loans		280,847	346,490
Less: Allowance for loan losses - covered		(16,340)	(21,353)
Net loans - covered		264,507	325,137
Net total loans		4,472,067	4,193,955
Premises and equipment		44,857	48,389
FDIC indemnification asset		36,997	67,026
Other real estate owned and repossessed assets		46,373	48,743
Loan servicing rights		58,894	70,598
Core deposit intangible		14,131	13,035
Goodwill		3,524	0
FDIC receivable		5,543	6,062
Company-owned life insurance		104,972	97,782
Income tax benefit		188,755	177,472
Other assets		43,173	40,982
Total assets		6,417,623	5,872,264
Deposits:
Noninterest-bearing demand deposits		1,002,053	887,567
Interest-bearing demand deposits		821,557	660,697
Money market and savings deposits		1,276,726	1,170,236
Time deposits		1,427,126	1,188,178
Other brokered funds		380,611	642,185
Total deposits		4,908,073	4,548,863
FDIC clawback liability		28,588	26,905
FDIC warrants payable		4,441	4,633
Short-term borrowings		253,945	135,743
Long-term debt		414,947	353,972
Other liabilities		41,223	40,541
Total liabilities		5,651,217	5,110,657
Shareholders’ equity
Preferred stock - $1.00 par value Authorized - 20,000,000 shares at 6/30/2015 and 12/31/2014 Issued and outstanding - 0 shares at 6/30/2015 and 12/31/2014		0	0
Common stock:
Additional paid-in-capital		385,686	405,436
Retained earnings		307,355	281,789
Accumulated other comprehensive income, net of tax		2,236	3,850
Total shareholders' equity		766,406	761,607
Total liabilities and shareholders’ equity		6,417,623	5,872,264
Class A Voting Common Stock
Common stock:
Common Stock		71,129	70,532
Class B Non-Voting Common Stock
Common stock:
Common Stock		0	0
Residential real estate
Loans:
Total loans, excluding covered loans	[1]	1,434,678	1,426,012
Commercial real estate
Loans:
Total loans, excluding covered loans		1,395,783	1,310,938
Commercial and industrial
Loans:
Total loans, excluding covered loans		1,066,353	869,477
Real estate construction
Loans:
Total loans, excluding covered loans	[1]	175,192	131,686
Consumer
Loans:
Total loans, excluding covered loans		$ 172,120	$ 164,524
[1]	Amounts represent loans for which the Company has elected the fair value option. See Note 3.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, Authorized shares	20,000,000	20,000,000
Preferred stock, Issued shares	0	0
Preferred stock, outstanding shares	0	0
Residential real estate
Total loans, excluding covered loans, measured at fair value (in dollars)	$ 20.9	$ 18.3
Real estate construction
Total loans, excluding covered loans, measured at fair value (in dollars)	$ 0	$ 1.2
Class A Voting Common Stock
Common Stock, par value (in dollars per share)	$ 1	$ 1
Common Stock, Authorized shares	198,000,000	198,000,000
Common Stock, Issued shares	70,128,894	70,532,122
Common stock, outstanding shares	70,128,894	70,532,122
Class B Non-Voting Common Stock
Common Stock, par value (in dollars per share)	$ 1	$ 1
Common Stock, Authorized shares	2,000,000	2,000,000
Common Stock, Issued shares	0	0
Common stock, outstanding shares	0	0

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest income
Interest and fees on loans	$ 58,319	$ 56,774	$ 118,257	$ 110,275
Interest on investments
Taxable	2,375	2,139	4,698	4,005
Tax-exempt	1,658	1,213	3,273	3,178
Total interest on securities	4,033	3,352	7,971	7,183
Interest on interest-earning cash balances	117	171	203	387
Interest on federal funds and other short-term investments	269	131	434	271
Dividends on FHLB stock	224	291	469	513
FDIC indemnification asset	(8,548)	(5,506)	(17,798)	(12,224)
Total interest income	54,414	55,213	109,536	106,405
Interest Expense
Interest-bearing demand deposits	382	216	672	440
Money market and savings deposits	562	492	1,033	986
Time deposits	2,131	1,432	3,958	2,923
Other brokered funds	607	35	1,230	64
Interest on short-term borrowings	209	33	288	208
Interest on long-term debt	914	627	1,714	1,201
Total interest expense	4,805	2,835	8,895	5,822
Net interest income	49,609	52,378	100,641	100,583
Provision for loan losses - uncovered	1,069	3,219	4,481	9,643
Benefit for loan losses - covered	(8,382)	(7,321)	(9,801)	(9,819)
Net interest income after provision for loan losses	56,922	56,480	105,961	100,759
Noninterest income
Deposit fee income	2,561	3,188	4,881	6,486
Mortgage banking and other loan fees	4,698	(1,122)	3,437	(37)
Net gain on sales of loans	8,748	5,681	17,366	8,725
Bargain purchase gain	0	0	0	41,977
FDIC loss sharing income	(5,928)	(3,434)	(6,996)	(3,547)
Accelerated discount on acquired loans	7,444	4,326	15,642	10,792
Net gain (loss) on sales of securities	6	0	(101)	(2,310)
Other income	4,569	5,312	9,299	9,605
Total noninterest income	22,098	13,951	43,528	71,691
Noninterest expense
Salary and employee benefits	28,685	30,466	57,897	66,317
Occupancy and equipment expense	8,415	7,871	16,081	16,914
Data processing fees	1,805	2,260	3,659	4,000
Professional service fees	3,275	2,628	6,818	6,665
FDIC loss sharing expense	133	983	1,082	1,507
Bank acquisition and due diligence fees	419	268	1,831	3,197
Marketing expense	1,483	1,605	2,578	2,696
Other employee expense	826	752	1,760	1,395
Insurance expense	1,527	868	3,057	2,699
Other expense	6,725	6,370	15,125	14,129
Total noninterest expense	53,293	54,071	109,888	119,519
Income before income taxes	25,727	16,360	39,601	52,931
Income tax provision (benefit)	8,179	(4,246)	12,620	(5,902)
Net income	$ 17,548	$ 20,606	$ 26,981	$ 58,833
Earnings per common share:
Basic (in dollars per share)	$ 0.25	$ 0.29	$ 0.38	$ 0.85
Diluted (in dollars per share)	$ 0.23	$ 0.27	$ 0.36	$ 0.79
Average common shares outstanding - basic (in shares)	70,301	70,021	70,259	69,071
Average common shares outstanding - diluted (in shares)	74,900	75,659	75,046	74,531

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 17,548	$ 20,606	$ 26,981	$ 58,833
Other comprehensive income:
Unrealized holding gains (losses) on securities available-for-sale arising during the period	(7,431)	7,151	(3,008)	13,427
Reclassification adjustment for (gains) losses on realized income	(6)	0	101	2,310
Tax effect	2,603	(2,503)	1,017	(5,508)
Net unrealized gains (losses) on securities available-for-sale, net of tax	(4,834)	4,648	(1,890)	10,229
Unrealized gains on interest rate swaps designated as cash flow hedges	558	0	233	0
Reclassification adjustment for losses included in net income	104	0	192	0
Tax effect	(232)	0	(149)	0
Net unrealized gains on interest rate swaps designated as cash flow hedges, net of tax	430	0	276	0
Other comprehensive income (loss), net of tax	(4,404)	4,648	(1,614)	10,229
Total comprehensive income, net of tax	$ 13,144	$ 25,254	$ 25,367	$ 69,062

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2013	$ 617,015	$ 66,234	$ 366,428	$ 192,349	$ (7,996)
Balance (in shares) at Dec. 31, 2013		66,234
Increase (Decrease) in Stockholders' Equity
Net income	58,833			58,833
Other comprehensive income	10,229				10,229
Stock-based compensation expense	454		454
Restricted stock awards, including tax benefit	0	$ 378	(378)
Restricted stock awards (in shares)		378
Issuance of common shares, including tax benefit	41,414	$ 3,839	37,575
Issuance of common shares (in shares)		3,839
Balance at Jun. 30, 2014	727,945	$ 70,451	404,079	251,182	2,233
Balance (in shares) at Jun. 30, 2014		70,451
Balance at Dec. 31, 2014	761,607	$ 70,532	405,436	281,789	3,850
Balance (in shares) at Dec. 31, 2014		70,532
Increase (Decrease) in Stockholders' Equity
Net income	26,981			26,981
Other comprehensive income	(1,614)				(1,614)
Stock-based compensation expense	866		866
Restricted stock awards, including tax benefit	16	$ 352	(336)
Restricted stock awards (in shares)		352
Issuance of common shares, including tax benefit	(143)	$ 245	(388)
Issuance of common shares (in shares)		245
Repurchase of warrants to repurchase 2.5 million shares, at fair value	(19,892)		(19,892)
Cash dividends paid on common stock ($0.02 per share)	(1,415)			(1,415)
Balance at Jun. 30, 2015	$ 766,406	$ 71,129	$ 385,686	$ 307,355	$ 2,236
Balance (in shares) at Jun. 30, 2015		71,129

Consolidated Statements of Cha7

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - 6 months ended Jun. 30, 2015 - $ / shares shares in Millions	Total
Statement of Stockholders' Equity [Abstract]
Number of shares repurchased	2.5
Dividend paid (in dollars per share)	$ 0.02

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net income	$ 26,981	$ 58,833
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,730	3,386
Amortization of core deposit intangibles	1,314	1,460
Stock-based compensation expense	866	454
Benefit for loan losses	(5,320)	(176)
Originations of loans held for sale	(664,111)	(510,154)
Proceeds from sales of loans	653,291	489,401
Net gain from sales of loans	(17,366)	(8,725)
Net loss on sales of securities	101	2,310
Gain on acquisition	0	(41,977)
Valuation allowance and writedowns on other real estate and other repossessed assets	5,017	2,404
Valuation change in Company-owned life insurance	(2,471)	(1,080)
Valuation change in loan servicing rights	4,850	9,014
Additions to loan servicing rights	(5,848)	(3,748)
Net decrease in FDIC indemnification asset and receivable	27,428	25,698
Net (gain)/loss on sales of other real estate owned and repossessed assets	(2,806)	(4,229)
Net (increase)/decrease in accrued interest receivable and other assets	2,399	(21,146)
Net increase/(decrease) in accrued expenses and other liabilities	(1,286)	17,037
Net securities premium amortization	3,535	2,286
Deferred income tax benefit (expense)	(8,543)	20,665
Change in valuation allowance of deferred income tax asset	0	(10,127)
Other, net	867	342
Net cash from operating activities	22,628	31,928
Cash flows from investing activities
Net increase in uncovered loans	(201,262)	(288,526)
Net decrease in covered loans	57,433	68,023
Purchases of loans	(30,793)	0
Purchases of FHLB stock	(6,716)	(5,300)
Purchases of securities available-for-sale	(187,009)	(185,687)
Purchases of Company-owned life insurance	0	(55,000)
Purchases of premises and equipment	(1,907)	(6,995)
Payments received from FDIC under loss sharing agreements	3,120	4,054
Proceeds from:
Maturities and redemptions of securities available-for-sale	85,238	44,619
Redemption of FHLB Stock	2,384	10,995
Sale of securities available-for-sale	24,750	54,211
Sale of loan servicing rights	12,702	0
Sale of loans	49,839	5,526
Sale of other real estate owned and repossessed assets	20,454	24,329
Sale of premises and equipment	2,737	1,621
Net cash provided from acquisition	810	209,831
Net cash used in investing activities	(168,220)	(118,299)
Cash flows from financing activities
Net increase/(decrease) in deposits	157,757	(162,100)
Draw on senior unsecured line of credit	30,000	0
Repayment of senior unsecured line of credit	0	(35,000)
Net increase in other short-term borrowings	88,202	201,932
Issuances of long-term FHLB advances	200,000	90,000
Repayments of long-term FHLB advances	(147,870)	(21,880)
Repayments on long-term sweep repurchase agreements	(821)	(816)
Repayments of subordinated debt	(3,500)	0
Other changes in long-term debt	80	66
Repurchase of warrants to repurchase 2.5 million shares, at fair value	(19,892)	0
Proceeds from issuance of common stock, including tax benefit	(127)	41,414
Cash dividends paid on common stock ($0.02 per share)	(1,415)	0
Net cash from financing activities	302,414	113,616
Net increase (decrease) in cash and cash equivalents	156,822	27,245
Beginning cash and cash equivalents	253,736	375,356
Ending cash and cash equivalents	410,558	402,601
Supplemental disclosure of cash flow information:
Interest paid	8,292	6,125
Income taxes paid	16,745	4,344
Transfer from mortgage loans to other real estate owned and repossessed assets	18,753	13,334
Net transfer of loans held for sale to loans held for investment	(3,983)	21,456
Transfer from premises and equipment to other real estate owned	455	675
Increase in assets and liabilities in acquisitions:
Securities	34,022	13,619
FHLB stock	874	5,933
Uncovered loans	162,265	571,666
Premises and equipment	2,077	6,540
Loan servicing rights	0	767
Company-owned life insurance	4,719	0
Other real estate owned and repossessed assets	1,260	30,878
Core deposit intangible	2,410	3,633
Other assets	6,462	62,542
Deposits	201,453	857,769
Short-term borrowings	0	18
Long-term debt	13,086	0
Other liabilities	$ 3,884	$ 5,645

Consolidated Statements of Cas9

Consolidated Statements of Cash Flows (Parenthetical) - 6 months ended Jun. 30, 2015 - $ / shares shares in Millions	Total
Statement of Cash Flows [Abstract]
Number of shares repurchased	2.5
Cash dividends declared on common stock (in dollars per share)	$ 0.02

BASIS OF PRESENTATION AND RECEN

BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS	BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS The accompanying unaudited consolidated financial statements of Talmer Bancorp, Inc. (“the Company”), and its wholly-owned subsidiaries have been prepared in accordance with United States (U.S.) generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the Consolidated Financial Statements, primarily consisting of normal recurring adjustments, have been included. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or for any other interim period. Certain items in prior periods were reclassified to conform to the current presentation. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s consolidated financial statements and footnotes included in the Annual Report of Talmer Bancorp, Inc. on Form 10-K for the year ended December 31, 2014 . On February 6, 2015, the Company acquired First of Huron Corp. which resulted in the recognition of goodwill on the Consolidated Balance Sheets. For further information, refer to Note 2, “Business Combinations”. Goodwill is initially recorded as the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is required to be tested annually for impairment or whenever events occur that may indicate that the recoverability of the carrying amount is not probable. In the event of impairment, the amount by which the carrying amount exceeds the fair value is charged to earnings. On February 17, 2015, the Company repurchased an aggregate of 2,529,416 warrants to repurchase shares of Class A common stock including 1,623,162 of warrants issued on April 30, 2010, 109,122 of warrants issued on February 21, 2012 and 797,132 of warrants issued on December 27, 2012. The purchase price was based upon the fair value of the warrants on February 17, 2015, determined utilizing the closing price of our stock on the date of repurchase, and resulted in an aggregate purchase price of $19.9 million. Recently Adopted and Issued Accounting Standards : The following provides a description of recently adopted or newly issued not yet effective accounting standards that had or could have a material effect on our financial statements. In May of 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers ” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including revenue recognition guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is intended to clarify and converge the revenue recognition principles under U.S. GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. The FASB recently approved a one year deferral of the effective date, therefore, ASU 2014-09 is effective for public companies for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. As such, the Company will adopt ASU 2014-09 as of January 1, 2018. Under the provision, the Company will have the option to adopt the guidance using either a full retrospective method or a modified transition approach. The Company is currently evaluating the provisions of ASU 2014-09.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONS The Company has determined that the acquisitions of First of Huron Corp. (“FHC”), and its subsidiary bank, Signature Bank, and Talmer West Bank (formerly known as Michigan Commerce Bank) constitute business combinations as defined by FASB ASC Topic 805, “ Business Combinations. ” Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition, as required. Fair values were determined based on the requirements of FASB ASC Topic 820, “ Fair Value Measurement. ” In many cases the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. On February 6, 2015, the Company acquired FHC for aggregate cash consideration of $13.4 million. In connection with the merger, FHC merged with Talmer Bancorp, Inc., with Talmer Bancorp, Inc. as the surviving company in the merger. Immediately following the merger, Signature Bank, a Michigan state-chartered bank and wholly owned subsidiary of FHC, merged with and into Talmer Bank and Trust, with Talmer Bank and Trust as the surviving bank. The Company assumed $3.5 million in subordinated notes issued to FHC and $1.4 million of related interest. The subordinated debt was immediately retired and the interest was paid in full in accordance with the provision of the purchase agreement. The Company also received FHC’s common securities issued by trust preferred issuers and assumed $876 thousand of outstanding interest. The outstanding interest on the trust preferred securities was immediately paid off in accordance with the provisions of the purchase agreement. The Company received certain tax assets and all cash and cash equivalents held by FHC. The Company incurred $ 144 thousand and $1.2 million of acquisition related expenses during the three and six months ended June 30, 2015 , related to the acquisition of FHC, included within “Bank acquisition and diligence fees” in the Consolidated Statements of Income. All of the branches acquired fit squarely within the Company’s target market areas. The acquisition resulted in a recorded $4.8 million in net deferred tax assets at acquisition. Upon acquisition, FHC incurred an ownership change within the meaning of Section 382 of the Internal Revenue Code, but the acquisition did not result in built-in losses within the meaning of Section 382. At February 6, 2015, FHC had an estimated $1.7 million in gross federal net operating loss carry forwards expiring in 2030, 2032 and 2033 and $303 thousand in federal alternative minimum tax credits with an indefinite life. As a result of the ownership change, the Company’s ability to benefit from the use of FHC’s pre-ownership change net operating loss and tax credit carry forwards will be limited to approximately $366 thousand per year. No valuation allowance was established against the deferred tax assets associated with FHC’s pre-change net operating losses and tax credit carry forwards based on management’s estimate that none of the amounts will expire unused. The assets and liabilities associated with the acquisition of FHC were recorded in the Consolidated Balance Sheets at estimated fair value as of the acquisition date. The following allocation is based on the information that was available to make preliminary estimates of the fair value and may change as additional information becomes available and additional analyses are completed. While the Company believes that information provided a reasonable basis for estimating the fair values, it expects that it could obtain additional information and evidence during the measurement period that may result in changes to the estimated fair value amounts. This measurement period ends on the earlier of one year after the acquisition date or the date we receive the information about the facts and circumstances that existed at the acquisition date. Subsequent adjustments are, and if necessary, will be retrospectively reflected in future filings. These refinements include: (1) changes in the estimated fair value of loans acquired; (2) changes in the estimated fair value of certain premises and equipment acquired; (3) changes in deferred tax assets related to fair value estimates and a change in the expected realization of items considered to be built in losses and (4) a change in the goodwill caused by the net effect of these adjustments. (Dollars in thousands) Consideration paid: Cash $ 13,395 Fair value of identifiable assets acquired: Cash and cash equivalents 14,205 Investment securities 34,022 Federal Home Loan Bank stock 874 Loans 162,265 Premises and equipment 2,077 Company-owned life insurance 4,719 Other real estate owned and repossessed assets 1,260 Core deposit intangible 2,410 Other assets 6,462 Total identifiable assets acquired 228,294 Fair value of liabilities assumed: Deposits 201,453 Long-term debt 13,086 Other liabilities 3,884 Total liabilities assumed 218,423 Fair value of net identifiable assets acquired 9,871 Goodwill recognized in the acquisition $ 3,524 The estimated fair values presented in the above table reflect additional information that the Company obtained following the acquisition, which resulted in changes to certain fair value estimates made as of the acquisition date within the measurement period. Material adjustments to the acquisition date estimated fair values are recorded in the period in which the acquisition occurred and, as a result, previously recorded results have changed. After considering this additional information, the estimated fair value of the deferred tax assets included within “other assets” increased $ 331 thousand, the estimated fair value of loans decreased $ 686 thousand and the estimated fair value of long-term debt increased $ 243 thousand. These revised fair value estimates resulted in a net increase to the recognition of goodwill resulting from acquisition of $ 598 thousand to $ 3.5 million, which is recognized in the Consolidated Balance Sheets as of June 30, 2015. The FHC acquisition resulted in recognition of $3.5 million of goodwill which is the excess of the consideration paid over the fair value of net assets acquired, and is the result of expected operational synergies and other factors. Loans acquired in the FHC acquisition were initially recorded at fair value with no separate allowance for loan losses. The Company reviewed the loans at acquisition to determine which should be considered purchased credit impaired loans (i.e. loans accounted for under FASB ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”)) defining impaired loans as those that were either not accruing interest or exhibited credit risk factors consistent with nonperforming loans at the acquisition date. Fair values for purchased loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of the loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Larger purchased loans are individually evaluated while smaller purchased loans are grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. The Company accounts for purchased credit impaired loans in accordance with the provisions of ASC 310-30. The cash flows expected to be collected on purchased loans are estimated based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. Purchased loans are considered credit impaired if there is evidence of credit deterioration at the date of purchase and if it is probable that not all contractually required payments will be collected. Interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows is recognized on the acquired loans accounted for under ASC 310-30. Purchased loans outside the scope of ASC 310-30 are accounted for under FASB ASC Subtopic 310-20, “Receivables - Nonrefundable Fees and Costs” (ASC 310-20). Premiums and discounts created when the loans were recorded at their fair values at acquisition are amortized over the remaining terms of the loans as an adjustment to the related loan’s yield. The core deposit intangible is being amortized on an accelerated basis over the estimated life, currently expected to be 10 years from the date of acquisition. Information regarding acquired loans accounted for under ASC 310-30 as well as those excluded from ASC 310-30 accounting at acquisition date is as follows: (Dollars in thousands) Accounted for under ASC 310-30: Contractual cash flows $ 53,807 Contractual cash flows not expected to be collected (nonaccretable difference) 8,084 Expected cash flows 45,723 Interest component of expected cash flows (accretable yield) 5,268 Fair value at acquisition $ 40,455 Excluded from ASC 310-30 accounting: Unpaid principal balance $ 124,538 Fair value discount (2,728 ) Fair value at acquisition 121,810 Total fair value at acquisition $ 162,265 FHC’s results of operations have been included in the Company’s financial results since the February 6, 2015 acquisition date. The acquisition was not considered material to the Company’s financial statements; therefore pro forma financial data and related disclosures are not included. On January 1, 2014, the Company purchased 100% of the capital stock of Financial Commerce Corporation’s wholly-owned subsidiary banks, Michigan Commerce Bank, a Michigan state-chartered bank, Indiana Community Bank, an Indiana state-chartered bank, Bank of Las Vegas, a Nevada state-chartered bank and Sunrise Bank of Albuquerque, a New Mexico state-chartered bank, and certain other bank-related assets from Financial Commerce Corporation and its parent holding company, Capitol Bancorp Ltd., in a transaction facilitated under Section 363 of the U.S. Bankruptcy Code, for cash consideration of $4.0 million and a separate $2.5 million payment to fund an escrow account to pay the post-petition administrative fees and expenses of the professionals in the bankruptcy cases of Financial Commerce Corporation and Capital Bancorp, Ltd., each of which filed voluntary bankruptcy petitions under Chapter 11 of the U.S. Bankruptcy Code on August 9, 2012, with any unused escrowed funds to be refunded to the Company. Immediately prior to consummation of the acquisition, Capitol Bancorp Ltd. merged Indiana Community Bank, Bank of Las Vegas and Sunrise Bank of Albuquerque with and into Michigan Commerce Bank, with Michigan Commerce Bank as the surviving bank in the merger. Simultaneously with the merger, Michigan Commerce Bank changed its name to Talmer West Bank. Following the acquisition, the Company contributed $99.5 million of additional capital to Talmer West Bank in order to recapitalize the bank. In order to support the acquisition and recapitalization of Talmer West Bank, the Company borrowed $35.0 million under a senior unsecured line of credit. The Company used a portion of the net proceeds from the initial public offering that closed on February 14, 2014 to repay the $35.0 million during the first quarter of 2014. The Company incurred $ 260 thousand and $ 191 thousand of acquisition related expenses related to the acquisition of Talmer West Bank during the three months ended June 30, 2015 and 2014 , respectively, and $ 638 thousand and $ 1.8 million during the six months ended June 30, 2015 and 2014 respectively. These acquisition related expenses are included within “Bank acquisition and due diligence fees” in the Consolidated Statements of Income. Twelve of the branches acquired, or 70% of the total number of branches acquired in the acquisition, fit squarely within the Company’s target market areas. The assets and liabilities associated with the acquisition of Talmer West Bank were recorded in the Consolidated Balance Sheets at estimated fair value as of the acquisition date as presented in the following table. (Dollars in thousands) Consideration paid: Cash $ 6,500 Fair value of identifiable assets acquired: Cash and cash equivalents 216,331 Investment securities 13,619 Federal Home Loan Bank stock 5,933 Loans 571,666 Premises and equipment 6,540 Loan servicing rights 767 Other real estate owned 30,878 Core deposit intangible 3,633 Other assets 62,542 Total identifiable assets acquired 911,909 Fair value of liabilities assumed: Deposits 857,769 Other liabilities 5,663 Total liabilities assumed 863,432 Fair value of net identifiable assets acquired 48,477 Bargain purchase gain resulting from acquisition $ 41,977 The Talmer West Bank acquisition resulted in a pre-tax bargain purchase gain of $42.0 million as the estimated fair value of assets acquired exceeded the estimated fair value of liabilities assumed and consideration paid. The gain was included within “Bargain purchase gain” in the Consolidated Statements of Income. Loans acquired in the Talmer West Bank acquisition were initially recorded at fair value with no separate allowance for loan losses. Information regarding acquired loans accounted for under ASC 310-30 as well as those excluded from ASC 310-30 accounting at acquisition date is as follows: (Dollars in thousands) Accounted for under ASC 310-30: Contractual cash flows $ 331,523 Contractual cash flows not expected to be collected (nonaccretable difference) 86,410 Expected cash flows 245,113 Interest component of expected cash flows (accretable yield) 32,764 Fair value at acquisition $ 212,349 Excluded from ASC 310-30 accounting: Unpaid principal balance $ 362,782 Fair value discount (3,465 ) Fair value at acquisition 359,317 Total fair value at acquisition $ 571,666 Talmer West Bank’s results of operations have been included in the Company’s financial results since the January 1, 2014 acquisition date.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE The fair value framework as detailed by FASB ASC Topic 820, “Fair Value Measurement” requires the categorization of assets and liabilities into a three-level hierarchy based on the markets in which the financial instruments are traded and the reliability of the assumptions used to determine fair value. A brief description of each level follows. Level 1 — Valuation is based upon quoted prices (unadjusted) for identical instruments in active markets. Level 2 — Valuation is based upon quoted prices for identical or similar instruments in markets that are not active; quoted prices for similar instruments in active markets; or model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3 — Valuation is measured through utilization of model-based techniques that rely on at least one significant assumption not observable in the market. Any necessary unobservable assumptions used reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques. Fair value estimates are based on existing financial instruments and, in accordance with U.S. GAAP, do not attempt to estimate the value of anticipated future business or the value of assets and liabilities that are not considered financial instruments. In addition, tax ramifications related to the recognition of unrealized gains and losses, such as those within the investment securities portfolio, can have a significant effect on estimated fair values and, in accordance with U.S. GAAP, have not been considered in the estimates. For these reasons, the aggregate fair value should not be considered an indication of the value of the Company. Following is a description of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value, as well as a description of the methods and any significant assumptions used to estimate fair value disclosures for financial assets and liabilities not recorded at fair value in their entirety on a recurring basis. For financial assets and liabilities recorded at fair value, the description includes the level of the fair value hierarchy in which the assets or liabilities are classified. Transfers of asset or liabilities between levels of the fair value hierarchy are recognized at the beginning of the reporting period, when applicable. Cash and cash equivalents: Due to the short-term nature, the carrying amount of these assets approximates the estimated fair value. The Company classifies cash and due from banks as Level 1 and interest-bearing deposits with other banks and federal funds and other short-term investments as Level 2. Investment securities: Investment securities classified as available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available or the market is deemed to be inactive at the measurement date, fair values are measured utilizing independent valuation techniques of identical or similar investment securities. Third-party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities. Management reviews the methodologies and assumptions used by the third-party pricing services and evaluates the values provided, principally by comparison with other available market quotes for similar instruments and/or analysis based on internal models using available third-party market data. Level 2 securities include obligations issued by U.S. government-sponsored enterprises, state and municipal obligations, mortgage-backed securities issued by both U.S. government-sponsored enterprises and non-agency enterprises, corporate debt securities, Small Business Administration Pools and privately issued commercial mortgage-backed securities that have active markets at the measurement date. The fair value of Level 2 securities was determined using quoted prices of securities with similar characteristics or pricing models based on observable market data inputs, primarily interest rates, spreads and prepayment information. Securities classified as Level 3, including a trust preferred security (included within “Corporate debt securities”) and an obligation of a political subdivision as of June 30, 2015, represent securities in less liquid markets requiring significant management assumptions when determining fair value. As of December 31, 2014, securities classified as Level 3 also included a privately issued subordinated corporate debt security (included within “Corporate debt securities”). The fair values of these investment securities represent less than one percent of the total available-for-sale securities. The fair value of the trust preferred security is compiled by a third-party vendor through consideration of recent trades and/or auctions of comparable securities, where applicable and are presented without adjustment. Comparable securities consider credit, structure, tenor, trade flows and cash flow characteristics. Due to the limited sales of these types of securities, significant unobservable assumptions are included to determine comparable securities to be included in the analysis. The fair value of the political subdivision obligation has been determined to be equal to the carrying cost since the securities were acquired. The issuers have continued to pay their obligations without fail and the Company has not received any information to question future payments. Since the purchase of these securities, no credit related concerns have come to the Company’s attention, therefore no adjustment for credit loss assumptions were made. Investment securities classified as held-to-maturity are carried at amortized cost. Due to limited liquidity of these securities, held-to-maturity securities are classified as Level 3. The fair value of the held-to-maturity security is determined to be equal to the carrying value. No credit related concerns have come to the Company’s attention; therefore, no credit loss assumptions were made. Federal Home Loan Bank (“FHLB”) Stock: Restricted equity securities are not readily marketable and are recorded at cost and evaluated for impairment based on the ultimate recoverability of initial cost. No significant observable market data is available for these instruments. The Company considers the profitability and asset quality of the issuer, dividend payment history and recent redemption experience, when determining the ultimate recoverability of cost. The Company believes its investments in FHLB stock are ultimately recoverable at cost. Loans held for sale: Loans held for sale are carried at fair value based on the Company’s election of the fair value option. These loans currently consist of one-to-four family residential real estate loans originated for sale to qualified third parties. The fair value is determined based on quoted market rates and other market conditions considered relevant. The Company classifies loans held for sale as recurring Level 2. Loans measured at fair value : During the normal course of business, loans originated with the initial intention to sell but not ultimately sold, are transferred from held for sale to our portfolio of loans held for investment at fair value as the Company adopted the fair value option at origination. The fair value of these loans is estimated using discounted cash flows, taking into consideration current market interest rates, loan repricing characteristics and expected loan prepayment speeds, while also taking into consideration other significant unobservable inputs such as the payment history and credit quality characteristic of each individual loan and an illiquidity discount reflecting the relative illiquidity of the market. Due to the adjustments made relating to unobservable inputs, the Company classifies the loans transferred from loans held for sale as recurring Level 3. Loans: The Company does not record loans at fair value on a recurring basis other than those discussed in “Loans measured at fair value” above. However, periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements. Loans, outside the scope of ASC 310-30, are considered impaired when, based on current information and events; it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans, which include all nonaccrual loans and troubled debt restructurings, are disclosed as nonrecurring fair value measurements when an allowance is established based on the fair value of the underlying collateral. Appraisals for collateral-dependent impaired loans are prepared by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties). These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. The comparable sales approach evaluates the sales price of similar properties in the same market area. This approach is inherently subjective due to the wide range of comparable sale dates. The income approach considers net operating income generated by the property and the investor’s required return. This approach utilizes various inputs including lease rates and cap rates which are subject to judgment. Adjustments are routinely made in the appraisal process by the appraisers to account for differences between the comparable sales and income data available. These adjustments generally range from 0% to 40% depending on the property type, as well as various sales and property characteristics including but not limited to: date of sale, size and condition of facility, quality of construction and proximity to the subject property. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics to determine if additional downward adjustments should be made. Property values are typically adjusted when management is aware of circumstances, economic changes or other conditions, since the date of the appraisal that would impact the expected selling price. Such adjustments are usually significant and result in a nonrecurring Level 3 classification. Estimated fair values for loans accounted for under ASC 310-30 are based on a discounted cash flow methodology that considers factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Cash flows expected to be collected on these loans are estimated based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. The Company classifies the estimated fair value of loans accounted for under ASC 310-30 as Level 3. For loans excluded from ASC 310-30 accounting that are not individually evaluated for impairment, fair value is estimated using a discounted cash flow model. The cash flows take into consideration current portfolio interest rates and repricing characteristics as well as assumptions relating to prepayment speeds. The discount rates take into consideration the current market interest rate environment, a credit risk component based on the credit characteristics of each loan portfolio, and a liquidity premium reflecting the liquidity or illiquidity of the market. The Company classifies the estimated fair value of non-collateral dependent loans excluded from ASC 310-30 accounting as Level 3. Premises and equipment: Premises and equipment are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. Impaired premises and equipment at both June 30, 2015 and December 31, 2014 were recorded at fair value based on a recent appraisal through a valuation allowance. The Company classifies impaired premises and equipment as nonrecurring Level 3. FDIC indemnification asset: The fair value of the FDIC indemnification asset is estimated using projected cash flows related to the loss sharing agreements based on the expected reimbursements for losses and the applicable loss sharing percentages. The Company re-estimates the expected indemnification asset cash flows in conjunction with the quarterly re-estimation of cash flows on covered loans accounted for under ASC 310-30. The expected cash flows are discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be subject to significant change. The estimates used in calculating the value of the FDIC indemnification asset are reflective of the estimates utilized to determine the estimated fair value of loans accounted for under ASC 310-30. The Company classifies the estimated fair value of the FDIC indemnification asset as Level 3. Other real estate owned and repossessed assets : Other real estate owned and repossessed assets represents property acquired by the Company as part of an acquisition, through the loan foreclosure or repossession process, or any other resolution activity that results in partial or total satisfaction of problem loans, or by closing of branches or operating facilities. Properties are initially recorded at fair value, less estimated costs to sell, establishing a new cost basis. Subsequently, the assets are valued at the lower of cost or fair value, less estimated costs to sell, based on periodic valuations performed. Fair value is based upon independent market prices, appraised value or management’s estimate of the value, using a single valuation approach or a combination of approaches including comparable sales, the income approach and existing offers. The comparable sales approach evaluates the sales price of similar properties in the same market area. This approach is inherently subjective due to the wide range of comparable sale dates. The income approach considers net operating income generated by the property and the investor’s required return. This approach utilizes various inputs including lease rates and cap rates which are subject to judgment. Adjustments are routinely made in the appraisal process by the appraisers to account for differences between the comparable sales and income data available. These adjustments generally range from 0% to 40% depending on the property type, as well as various sales and property characteristics including but not limited to: date of sale, size and condition of facility, quality of construction and proximity to the subject property. Adjustments are typically significant and result in a Level 3 classification. Loan servicing rights: Loan servicing rights are accounted for under the fair value measurement method based on accounting election. A third party valuation model is used to determine the fair value at the end of each reporting period utilizing a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and a discount rate determined by management. Changes in fair value of loan servicing rights are recorded in “Mortgage banking and other loan fees”. Because of the nature of the valuation inputs, the company classifies loan servicing rights as Level 3. Refer to Note 10, “Loan Servicing Rights”, for assumptions included in the valuation of loan servicing rights. FDIC receivable: The FDIC receivable represents claims submitted to the Federal Deposit Insurance Corporation (“FDIC”) for reimbursement for which the Company expects to receive payment within 90 days. Due to their short term nature, the carrying amount of these instruments approximates the estimated fair value. The Company classifies the estimated fair value of FDIC receivable as Level 2. Company-owned life insurance and deferred compensation plan liabilities: The Company holds life insurance policies on certain officers, both for investment purposes and for the Company’s deferred compensation plan. The carrying value of these policies approximates fair value as it is based on the cash surrender value adjusted for other charges or amounts due that are probable at settlement. As such, the Company classifies the estimated fair value of Company-owned life insurance as Level 2. Deferred compensation plan liabilities represent the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets. Deferred compensation plan liabilities are recorded with “other liabilities” and are classified by the Company as Level 2. Derivative instruments: The Company enters into interest rate lock commitments with prospective borrowers to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors, which are carried at fair value on a recurring basis. The fair value of these commitments is based on the fair value of related mortgage loans determined using observable market data. Interest rate lock commitments are adjusted for expectations of exercise and funding. This adjustment is not considered to be a material input. The Company classifies interest rate lock commitments and forward contracts related to mortgage loans to be delivered for sale as recurring Level 2. Derivative instruments held or issued for risk management or customer-initiated activities are traded in over-the counter markets where quoted market prices are not readily available. Fair value for over-the-counter derivative instruments is measured on a recurring basis using third party models that use primarily market observable inputs, such as yield curves and option volatilities. The fair value for these derivatives may include a credit valuation adjustment that is determined by applying a credit spread for the counterparty or the Company, as appropriate, to the total expected exposure of the derivative after considering collateral and other master netting arrangements. These adjustments, which are considered Level 3 inputs, are based on estimates of current credit spreads to evaluate the likelihood of default. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and at both June 30, 2015 and December 31, 2014 it was determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the company classifies its risk management interest rate swaps designated as cash flow hedges and customer-initiated derivatives valuations in Level 2 of the fair value hierarchy. Accrued interest receivable and payable: Due to their short term nature, the carrying amount of these instruments approximates the estimated fair value; therefore, the Company classifies the estimated fair value of accrued interest receivable and payable as Level 2. Deposits: The estimated fair value of demand deposits (e.g., noninterest and interest-bearing demand, savings, other brokered funds and certain types of money market accounts) is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are based on the discounted value of contractual cash flows at current interest rates. The estimated fair value of deposits does not take into account the value of the Company’s long-term relationships with depositors, commonly known as core deposit intangibles, which are not considered financial instruments. The Company classifies the estimated fair value of deposits as Level 2. Clawback liability: The CF Bancorp, First Banking Center and Peoples State Bank loss sharing agreements contain a provision where if losses do not exceed a calculated threshold, the Company is obligated to compensate the FDIC. The carrying amount of these instruments approximates the estimated fair value. The estimated fair value requires management’s assumption of what estimated losses will be, which is a significant component. As such, the Company classifies the estimated fair value of the FDIC clawback liability as Level 3. Short-term borrowings: Short-term borrowings represent federal funds purchased, a senior unsecured line of credit and certain short-term FHLB advances. Due to their short term nature, the carrying amount of these instruments approximates the estimated fair value. The Company classifies the estimated fair value of short-term borrowings as Level 2. Long-term debt: Long-term debt includes securities sold under agreements to repurchase, FHLB advances and subordinated notes related to trust preferred securities. The estimated fair value is based on current rates for similar financing or market quotes to settle those liabilities. The Company classifies the estimated fair value of long-term debt as Level 2. FDIC warrants payable: FDIC warrants payable represent stock warrants that were issued to the FDIC in connection with the 2010 FDIC-assisted acquisition of CF Bancorp. These warrants are recorded at net present value based on management estimates used in a discounted pricing model. The inputs into the pricing model include management’s assumption of an annualized growth rate. The carrying amount of these instruments approximates the estimated fair value. The Company classifies the estimated fair value of FDIC warrants payable as Level 3. The following tables present the recorded amount of assets and liabilities measured at fair value, including financial assets and liabilities for which the Company has elected the fair value option, on a recurring basis: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 98,283 $ — $ 98,283 $ — Obligations of state and political subdivisions: Taxable 4,361 — 4,043 318 Tax-exempt 271,754 — 271,754 — Small Business Administration (“SBA”) Pools 32,349 — 32,349 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 334,034 — 334,034 — Privately issued 26,460 — 26,460 — Privately issued commercial mortgage-backed securities 19,509 — 19,509 — Corporate debt securities 58,569 — 58,121 448 Total securities available-for-sale 845,319 — 844,553 766 Loans measured at fair value: Residential real estate 20,907 — — 20,907 Loans held for sale 117,042 — 117,042 — Loan servicing rights 58,894 — — 58,894 Derivative assets: Forward contracts related to mortgage loans to be delivered for sale 863 — 863 — Interest rate lock commitments 2,029 — 2,029 — Customer-initiated derivatives 2,011 — 2,011 — Risk management derivatives 337 — 337 — Total derivatives 5,240 — 5,240 — Total assets at fair value $ 1,047,402 $ — $ 966,835 $ 80,567 Derivative liabilities: Customer-initiated derivatives 1,870 — 1,870 — Risk management derivatives 134 — 134 — Total derivatives 2,004 — 2,004 — Total liabilities at fair value $ 2,004 $ — $ 2,004 $ — December 31, 2014 Securities available-for-sale: U.S. government sponsored agency obligations $ 98,358 $ — $ 98,358 $ — Obligations of state and political subdivisions: Taxable 397 — — 397 Tax-exempt 232,259 — 232,259 — SBA Pools 33,933 — 33,933 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 291,759 — 291,759 — Privately issued 18,800 — 18,800 — Privately issued commercial mortgage-backed securities 5,130 — 5,130 — Corporate debt securities 60,183 — 56,758 3,425 Total securities available-for-sale 740,819 — 736,997 3,822 Loans measured at fair value: Residential real estate 18,311 — — 18,311 Real estate construction 1,215 — — 1,215 Loans held for sale 93,453 — 93,453 — Loan servicing rights 70,598 — — 70,598 Derivative assets: Interest rate lock commitments 1,489 — 1,489 — Customer-initiated derivatives 1,588 — 1,588 — Total derivatives 3,077 — 3,077 — Total assets at fair value $ 927,473 $ — $ 833,527 $ 93,946 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 803 — 803 — Customer-initiated derivatives 1,477 — 1,477 — Risk management derivatives 222 — 222 — Total derivatives 2,502 — 2,502 — Total liabilities at fair value $ 2,502 $ — $ 2,502 $ — During the six months ended June 30, 2015, a privately issued subordinated debt security (included within “Corporate debt securities”) was transferred from Level 3 in the fair value hierarchy to Level 2 due to the market for this security becoming active during the period. There were no transfers between levels within the fair value hierarchy during the three and six months ended June 30, 2014 . The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis. Three months ended June 30, 2015 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Corporate Debt Securities Loans held for investment Loan servicing rights Balance, beginning of period $ 397 $ 430 $ 22,158 $ 54,409 Transfers from loans held for sale — — 764 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” 1 1 — — Recorded in “Net gain on sales of loans” 12 Recorded in “Mortgage banking and other loan fees” — — (347 ) 1,552 Recorded in OCI (pre-tax) — 17 — — New originations — — — 2,933 Repayments (80 ) — (1,680 ) — Balance, end of period $ 318 $ 448 $ 20,907 $ 58,894 Six months ended June 30, 2015 Securities available-for-sale (Dollars in thousands) Taxable obligations of Corporate Debt Loans held for Loan servicing Balance, beginning of period $ 397 $ 3,425 $ 19,526 $ 70,598 Transfer between levels within fair value hierarchy — (3,000 ) — — Transfers from loans held for sale — — 3,983 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” 1 2 — — Recorded in “Net gain on sales of loans” — — 139 — Recorded in “Mortgage banking and other loan fees” — — (239 ) (4,850 ) Recorded in OCI (pre-tax) — 21 — — New originations — — — 5,848 Reduction from servicing rights sold — — — (12,702 ) Repayments (80 ) — (2,502 ) — Balance, end of period $ 318 $ 448 $ 20,907 $ 58,894 Three months ended June 30, 2014 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Corporate Debt Securities Loans held for investment Loan servicing rights Balance, beginning of period $ 397 $ 420 $ 17,914 $ 77,892 Transfers from loans held for sale — — 542 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” — 1 — — Recorded in “Net gain on sales of loans” — — 15 — Recorded in “Mortgage banking and other loan fees” — — 386 (5,947 ) Recorded in OCI (pre-tax) — 12 — — New originations — — — 2,159 Repayments — — (332 ) — Balance, end of period $ 397 $ 433 $ 18,525 $ 74,104 Six months ended June 30, 2014 Securities available-for-sale (Dollars in thousands) Taxable obligations of Corporate Debt Loans held for Loan servicing Balance, beginning of period $ 396 $ 405 $ 17,708 $ 78,603 Additions due to acquisition — — — 767 Transfers from loans held for sale — — 778 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” 1 2 — — Recorded in “Net gain on sales of loans” — — 8 — Recorded in “Mortgage banking and other loan fees” — — 467 (9,014 ) Recorded in OCI (pre-tax) — 26 — — New originations — — — 3,748 Repayments — — (564 ) — Draws on previously issued lines of credits — — 128 — Balance, end of period $ 397 $ 433 $ 18,525 $ 74,104 The aggregate fair value, contractual balance (including accrued interest), and gain or loss position for loans held for investment measured and recorded at fair value was as follows: (Dollars in thousands) June 30, 2015 December 31, 2014 Aggregate fair value $ 20,907 $ 19,526 Contractual balance 20,581 19,100 Fair market value gain 326 426 There were no gains (losses) included in the fair value above that were associated with instrument specific credit risk. The aggregate fair value of loans held for investment measured and recorded at fair value that were on nonaccrual status as of June 30, 2015 and December 31, 2014 was $150 thousand and $155 thousand , respectively. There were no loans held for investment measured and recorded at fair value that were 90 days or more past due as of June 30, 2015 . The aggregate fair value and contractual principal balance of loans held for investment measured and recorded at fair value that were 90 days or more past due as of December 31, 2014 was $155 thousand and $191 thousand, respectively. Interest income is recorded based on the contractual terms of the loans in accordance with the Company’s policy on loans held for investment and is recorded in “Interest and fees on loans” in the Consolidated Statements of Income. For the three months ended June 30, 2015 and 2014 , there were $208 thousand and $168 thousand, respectively, and $413 thousand thousand and $259 thousand for the six months ended June 30, 2015 and 2014, respectively, of interest income earned on loans transferred from loans held for sale to loans held for investment. The total amount of gains (losses) from changes in fair value of loans held for investment measured at fair value in the Consolidated Statements of Income were as follows: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Change in fair value: Included in “Net gain on sales of loans” $ 12 $ 15 $ 139 $ 8 Included in “Mortgage banking and other loan fees” (347 ) 386 (239 ) 467 The Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans in accordance with the Company policy on loans held for investment in “Interest and fees on loans” in the Consolidated Statements of Income. None of these loans are 90 days past due or on nonaccrual status as of June 30, 2015 or December 31, 2014 . The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: (Dollars in thousands) June 30, 2015 December 31, 2014 Aggregate fair value $ 117,042 $ 93,453 Contractual balance 113,851 89,138 Unrealized gain 3,191 4,315 The total amount of gains (losses) from changes in fair value of loans held for sale included in “Net gain on sales of loans” in the Consolidated Statements of Income were as follows: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Change in fair value $ 417 $ 3,458 $ (1,124 ) $ 4,834 Certain financial assets and liabilities are measured at fair value on a nonrecurring basis. These include assets that are recorded at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The following table presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Impaired loans:(1) Uncovered Residential real estate $ 6,673 $ — $ — $ 6,673 Commercial real estate 3,684 — — 3,684 Commercial and industrial 370 — — 370 Real estate construction 198 — — 198 Consumer 29 — — 29 Total uncovered impaired loans 10,954 — — 10,954 Covered Residential real estate 68 — — 68 Commercial real estate 177 — — 177 Commercial and industrial 155 — — 155 Total covered impaired loans 400 — — 400 Total impaired loans 11,354 — — 11,354 Other real estate owned (uncovered)(2) 2,267 — — 2,267 Other real estate owned (covered)(3) 1,811 — — 1,811 Repossessed assets(4) 6,896 — — 6,896 Premises and equipment(5) 1,575 — — 1,575 Total $ 23,903 $ — $ — $ 23,903 December 31, 2014 Impaired loans:(1) Uncovered Residenti

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
SECURITIES	SECURITIES The following summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 97,860 $ 819 $ (396 ) $ 98,283 Obligations of state and political subdivisions: Taxable 4,361 7 (7 ) 4,361 Tax-exempt 271,102 2,601 (1,949 ) 271,754 SBA Pools 31,960 389 — 32,349 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 332,457 2,766 (1,189 ) 334,034 Privately issued 26,604 1 (145 ) 26,460 Privately issued commercial mortgage-backed securities 19,547 12 (50 ) 19,509 Corporate debt securities 58,190 445 (66 ) 58,569 Total securities available-for-sale $ 842,081 $ 7,040 $ (3,802 ) $ 845,319 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Securities held-to-maturity $ 1,692 $ — $ — $ 1,692 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2014 Securities available-for-sale: U.S. government sponsored agency obligations $ 97,746 $ 791 $ (179 ) $ 98,358 Obligations of state and political subdivisions: Taxable 397 — — 397 Tax-exempt 229,404 3,578 (723 ) 232,259 SBA Pools 33,824 209 (100 ) 33,933 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 289,156 2,886 (283 ) 291,759 Privately issued 18,814 27 (41 ) 18,800 Privately issued commercial mortgage-backed securities 5,127 3 — 5,130 Corporate debt securities 60,206 209 (232 ) 60,183 Total securities available-for-sale $ 734,674 $ 7,703 $ (1,558 ) $ 740,819 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Securities held-to-maturity $ 1,226 $ — $ — $ 1,226 Proceeds from sales of securities and the associated gains and losses recorded in earnings are listed below: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Proceeds $ 135 $ — $ 24,750 $ 54,211 Gross gains 6 — 9 — Gross losses — — (110 ) (2,310 ) The amortized cost and fair value of debt securities by contractual maturity at June 30, 2015 are shown below. Contractual maturity is utilized for U.S. Government sponsored agency obligations, obligations of state and political subdivisions and corporate debt securities. Securities with multiple maturity dates are classified in the period of final maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 (Dollars in thousands) Amortized Cost Fair Value Securities with contractual maturities: Within one year $ 5,921 $ 5,954 After one year through five years 142,325 143,842 After five years through ten years 185,443 185,589 After ten years 508,392 509,934 Total securities available-for-sale $ 842,081 $ 845,319 Securities held-to-maturity: After one year through five years $ 1,692 $ 1,692 Total securities held-to-maturity $ 1,692 $ 1,692 Securities with a carrying value of $453.2 million and $337.8 million were pledged at June 30, 2015 and December 31, 2014 , respectively, to secure borrowings and deposits. At June 30, 2015 and December 31, 2014 , there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. A summary of the Company’s investment securities available-for-sale in an unrealized loss position is as follows: Less than 12 Months More than 12 Months Total (Dollars in thousands) Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses June 30, 2015 U.S. government sponsored agency obligations $ 54,604 $ (396 ) $ — $ — $ 54,604 $ (396 ) Obligations of state and political subdivisions: Taxable 953 (7 ) — — 953 (7 ) Tax-exempt 137,675 (1,730 ) 8,026 (219 ) 145,701 (1,949 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 112,083 (1,164 ) 907 (25 ) 112,990 (1,189 ) Privately issued 25,984 (145 ) — — 25,984 (145 ) Privately issued commercial mortgage-backed securities 14,398 (50 ) — — 14,398 (50 ) Corporate debt securities 21,237 (64 ) 448 (2 ) 21,685 (66 ) Total securities available-for-sale $ 366,934 $ (3,556 ) $ 9,381 $ (246 ) $ 376,315 $ (3,802 ) December 31, 2014 U.S. government sponsored agency obligations $ — $ — $ 14,821 $ (179 ) $ 14,821 $ (179 ) Obligations of state and political subdivisions: Tax-exempt 31,054 (260 ) 33,650 (463 ) 64,704 (723 ) SBA Pools 1,844 (4 ) 17,682 (96 ) 19,526 (100 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 36,261 (85 ) 27,361 (198 ) 63,622 (283 ) Privately issued 7,801 (41 ) 8 — 7,809 (41 ) Corporate debt securities 22,520 (162 ) 8,912 (70 ) 31,432 (232 ) Total securities available-for-sale $ 99,480 $ (552 ) $ 102,434 $ (1,006 ) $ 201,914 $ (1,558 ) As of June 30, 2015 , the Company’s security portfolio consisted of 375 securities, 151 of which were in an unrealized loss position. The unrealized losses for these securities resulted primarily from changes in benchmark U.S. Treasury interest rates. The Company expects full collection of the carrying amount of these securities and does not intend to sell the securities in an unrealized loss position nor does it believe it will be required to sell securities in an unrealized loss position before the value is recovered. The Company does not consider these securities to be other-than-temporarily impaired at June 30, 2015 . The unrealized losses are spread across asset classes, primarily in those securities carrying fixed interest rates. At June 30, 2015 , the combination of these security asset class holdings in an unrealized loss position had an estimated fair value of $376.3 million with gross unrealized losses of $3.8 million . Unrealized losses in these security holdings were mainly impacted by increases in benchmark U.S. Treasury rates and, to a lesser extent, widened liquidity spreads in select assets classes since their respective acquisition dates.

LOANS

LOANS	6 Months Ended
	Jun. 30, 2015
Loans and Leases Receivable Disclosure [Abstract]
LOANS	LOANS Residential real estate loans represent loans to consumers for the purchase or refinance of a residence. These loans are generally financed over a 15 - to 30 -year term, and in most cases, are extended to borrowers to finance their primary residence with both fixed-rate and adjustable-rate terms. The majority of these loans originated by the Company conform to secondary market underwriting standards and are sold within a short timeframe to unaffiliated third parties. As such, the credit underwriting standards adhere to the underwriting standards and documentation requirements established by the respective investor or correspondent bank. Residential real estate loans also include home equity loans and lines of credit that are secured by a first or second lien on the borrower’s residence. Home equity lines of credit consist mainly of revolving lines of credit secured by residential real estate. Home equity lines of credit are generally governed by the same lending policies and subject to the same credit risk as described previously for residential real estate loans. Commercial real estate loans consist of term loans secured by a mortgage lien on the real property such as apartment buildings, office and industrial buildings, retail shopping centers, and farmland. The credit underwriting for both owner-occupied and non-owner occupied commercial real estate loans includes detailed market analysis, historical and projected cash flow analysis, appropriate equity margins, assessment of lessees and lessors, type of real estate and other analysis. Risk of loss is managed by adherence to standard loan policies that establish certain levels of performance prior to the extension of a loan to the borrower. Geographic diversification, as well as diversification across industries, are other means by which the risk of loss is managed by the Company. Commercial and industrial loans include financing for commercial purposes in various lines of business, including manufacturing, service industry, professional service areas and agricultural. The Company works with businesses to meet their short-term working capital needs while also providing long-term financing for their business plans. Credit risk is managed through standardized loan policies, established and authorized credit limits, centralized portfolio management and the diversification of market area and industries. The overall strength of the borrower is evaluated through the credit underwriting process and includes a variety of analytical activities including the review of historical and projected cash flows, historical financial performance, financial strength of the principals and guarantors, and collateral values, where applicable. Commercial and industrial loans are generally secured with the assets of the company and/or the personal guarantee of the business owners. Real estate construction loans are term loans to individuals, companies or developers used for the construction of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. Generally, these loans are for construction projects that have been either presold, preleased, or have secured permanent financing, as well as loans to real estate companies with significant equity invested in the project. Consumer loans include loans made to individuals not secured by real estate, including loans secured by automobiles or watercraft, and personal unsecured loans. Risk elements in the consumer loan portfolio are primarily focused on the borrower’s cash flow and credit history, key indicators of the ability to repay and borrower credit scores. A certain level of security is provided through liens on automobile or watercraft titles, where applicable. Economic conditions that affect consumers in the Company’s markets have a direct impact on the credit quality of these loans. Higher levels of unemployment, lower levels of income growth and weaker economic growth are factors that may adversely impact consumer loan credit quality. Loans at June 30, 2015 and December 31, 2014 were as follows: Covered loans Uncovered loans (Dollars in thousands) Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total covered loans Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total uncovered loans Total June 30, 2015 Residential real estate $ 75,655 $ 20,716 $ 96,371 $ 226,382 $ 1,208,296 $ 1,434,678 $ 1,531,049 Commercial real estate 124,722 19,176 143,898 184,620 1,211,163 1,395,783 1,539,681 Commercial and industrial 18,220 6,574 24,794 16,730 1,049,623 1,066,353 1,091,147 Real estate construction 6,761 665 7,426 7,298 167,894 175,192 182,618 Consumer 8,274 84 8,358 2,157 169,963 172,120 180,478 Total $ 233,632 $ 47,215 $ 280,847 $ 437,187 $ 3,806,939 $ 4,244,126 $ 4,524,973 (1) December 31, 2014 Residential real estate $ 86,515 $ 21,711 $ 108,226 $ 239,523 $ 1,186,489 $ 1,426,012 $ 1,534,238 Commercial real estate 160,886 25,776 186,662 190,148 1,120,790 1,310,938 1,497,600 Commercial and industrial 23,752 8,896 32,648 15,499 853,978 869,477 902,125 Real estate construction 8,415 974 9,389 8,309 123,377 131,686 141,075 Consumer 9,469 96 9,565 2,389 162,135 164,524 174,089 Total $ 289,037 $ 57,453 $ 346,490 $ 455,868 $ 3,446,769 $ 3,902,637 $ 4,249,127 (1) (1) Reported net of deferred fees totaling $2.7 million and $4.6 million at June 30, 2015 and December 31, 2014 , respectively. Nonperforming Assets and Past Due Loans Nonperforming assets consist of loans for which the accrual of interest has been discontinued, other real estate owned acquired through acquisitions, other real estate owned obtained through foreclosure and other repossessed assets. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans outside of those accounted for under ASC 310-30 are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income is discontinued when a loan is placed in nonaccrual status and any payments received reduce the carrying value of the loan. A loan may be placed back on accrual status if all contractual payments have been received and collection of future principal and interest payments are no longer doubtful. Loans accounted for under ASC 310-30 are classified as performing, even though they may be contractually past due, as any nonpayment of contractual principal or interest is considered in the quarterly re-estimation of expected cash flows and is included in the resulting recognition of current period provision for loan losses or future yield adjustments. Information as to nonperforming assets was as follows: (Dollars in thousands) June 30, December 31, Uncovered nonperforming assets Nonaccrual loans Residential real estate $ 20,133 $ 17,374 Commercial real estate 15,727 13,756 Commercial and industrial 3,119 3,550 Real estate construction 438 174 Consumer 308 257 Total nonaccrual loans 39,725 35,111 Other real estate owned and repossessed assets (1) 37,612 36,872 Total uncovered nonperforming assets 77,337 71,983 Covered nonperforming assets Nonaccrual loans Residential real estate 2,071 1,848 Commercial real estate 14,968 15,723 Commercial and industrial 2,369 3,560 Real estate construction 365 713 Consumer 20 13 Total nonaccrual loans 19,793 21,857 Other real estate owned and repossessed assets 8,261 10,719 Total covered nonperforming assets 28,054 32,576 Total nonperforming assets $ 105,391 $ 104,559 Uncovered loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 Residential real estate $ 120 $ 12 Commercial and industrial 4 — Real estate construction 5 — Consumer 211 41 Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 $ 340 $ 53 (1) Excludes closed branches and operating facilities. Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows: June 30, 2015 (Dollars in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and still accruing Uncovered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 3,973 $ 3,005 $ 8,739 $ 15,717 $ 1,192,579 $ 1,208,296 $ 120 Commercial real estate 3,589 1,764 10,985 16,338 1,194,825 1,211,163 — Commercial and industrial 6,184 42 2,465 8,691 1,040,932 1,049,623 4 Real estate construction 151 243 173 567 167,327 167,894 5 Consumer 1,203 517 329 2,049 167,914 169,963 211 Total $ 15,100 $ 5,571 $ 22,691 $ 43,362 $ 3,763,577 $ 3,806,939 $ 340 Covered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 537 $ 140 $ 1,307 $ 1,984 $ 18,732 $ 20,716 $ — Commercial real estate 101 — 2,350 2,451 16,725 19,176 — Commercial and industrial 29 67 2,308 2,404 4,170 6,574 — Real estate construction — — 288 288 377 665 — Consumer — — 2 2 82 84 — Total $ 667 $ 207 $ 6,255 $ 7,129 $ 40,086 $ 47,215 $ — December 31, 2014 (Dollars in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and still accruing Uncovered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 11,709 $ 2,044 $ 9,593 $ 23,346 $ 1,163,143 $ 1,186,489 $ 12 Commercial real estate 4,870 1,083 11,333 17,286 1,103,504 1,120,790 — Commercial and industrial 4,679 184 2,960 7,823 846,155 853,978 — Real estate construction 1,004 136 174 1,314 122,063 123,377 — Consumer 964 152 150 1,266 160,869 162,135 41 Total $ 23,226 $ 3,599 $ 24,210 $ 51,035 $ 3,395,734 $ 3,446,769 $ 53 Covered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 238 $ 35 $ 1,179 $ 1,452 $ 20,259 $ 21,711 $ — Commercial real estate — — 4,569 4,569 21,207 25,776 — Commercial and industrial 373 7 2,923 3,303 5,593 8,896 — Real estate construction — — 710 710 264 974 — Consumer — — 2 2 94 96 — Total $ 611 $ 42 $ 9,383 $ 10,036 $ 47,417 $ 57,453 $ — Impaired Loans Information as to total impaired loans (both individually and collectively evaluated for impairment) is as follows: (Dollars in thousands) June 30, December 31, Uncovered Nonaccrual loans $ 39,725 $ 35,111 Performing troubled debt restructurings: Residential real estate 2,392 1,368 Commercial real estate 3,741 3,785 Commercial and industrial 2,597 840 Real estate construction 131 90 Consumer 233 234 Total uncovered performing troubled debt restructurings 9,094 6,317 Total uncovered impaired loans $ 48,819 $ 41,428 Covered Nonaccrual loans $ 19,793 $ 21,857 Performing troubled debt restructurings: Residential real estate 3,584 3,046 Commercial real estate 3,055 9,017 Commercial and industrial 569 1,137 Real estate construction 300 264 Consumer 7 — Total covered performing troubled debt restructurings 7,515 13,464 Total covered impaired loans $ 27,308 $ 35,321 Troubled Debt Restructurings The Company assesses all loan modifications to determine whether a modification constitutes a troubled debt restructuring (“TDR”). For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired in association with consideration of qualitative factors included within ASC 310-40, “Receivables — Troubled Debt Restructurings by Creditors” (“ASC 310-40”). All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of charge off and/or allowance for loan losses. As of June 30, 2015 , there were $28.1 million of nonperforming TDRs and $16.6 million of performing TDRs included in impaired loans. As of December 31, 2014 , there were $25.0 million of nonperforming TDRs and $19.8 million of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. In subsequent years, a restructured obligation modified at a market rate and compliant with its modified terms for a minimum period of six months is no longer reported as a TDR. A loan that has been modified at a rate other than market will return to performing status if it satisfies the six month performance requirement; however, it will continue to be reported as a TDR and considered impaired. If a TDR is subsequently restructured under current market terms, no cumulative concession has been granted to the borrower and the borrower is not experiencing financial difficulties, which is documented by a current credit evaluation, the loan is no longer required to be reported as a TDR. The following tables present the recorded investment of loans modified in TDRs during the three and six months ended June 30, 2015 and 2014 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of modification (Dollars in thousands) Principal deferral Principal reduction (1) Interest rate Forbearance agreement Total number of loans Total recorded investment at June 30, 2015 Net charge-offs (recoveries) Provision (benefit) for loan losses (2) For the three months ended June 30, 2015 Uncovered Residential real estate $ 403 $ 114 $ 224 $ — 17 $ 741 $ — $ 162 Commercial real estate 93 — 1,304 532 9 1,929 — — Commercial and industrial 231 — 542 152 14 925 192 232 Real estate construction 44 — 72 — 2 116 — — Consumer 17 — — — 1 17 — — Total uncovered $ 788 $ 114 $ 2,142 $ 684 43 $ 3,728 $ 192 $ 394 Covered Residential real estate $ 747 $ — $ 112 $ — 6 $ 859 $ — $ 5 Commercial real estate — — 2,442 — 8 2,442 — 2 Real estate construction 46 — 76 — 2 122 30 30 Total covered $ 793 $ — $ 2,630 $ — 16 $ 3,423 $ 30 $ 37 Total loans $ 1,581 $ 114 $ 4,772 $ 684 59 $ 7,151 $ 222 $ 431 For the six months ended June 30, 2015 Uncovered Residential real estate $ 1,286 $ 114 $ 785 $ — 26 $ 2,185 $ 1 $ 192 Commercial real estate 93 — 1,402 1,639 12 3,134 37 129 Commercial and industrial 567 — 1,254 178 22 1,999 192 280 Real estate construction 44 — 72 130 3 246 — — Consumer 17 — — — 1 17 — — Total uncovered $ 2,007 $ 114 $ 3,513 $ 1,947 64 $ 7,581 $ 230 $ 601 Covered Residential real estate $ 812 $ — $ 187 $ — 9 $ 999 $ 5 $ 77 Commercial real estate — — 2,694 — 10 2,694 — 81 Commercial and industrial — — 95 — 1 95 — 92 Real estate construction 46 — 76 — 2 122 (8 ) (8 ) Consumer 15 — — — 1 15 — — Total covered $ 873 $ — $ 3,052 $ — 23 $ 3,925 $ (3 ) $ 242 Total loans $ 2,880 $ 114 $ 6,565 $ 1,947 87 $ 11,506 $ 227 $ 843 (1) Loan forgiveness related to loans modified in TDRs for both the three and six months ended June 30, 2015 totaled $187 thousand . (2) The provision for loan losses for covered loans is partially offset by the build of an associated FDIC indemnification asset on covered loans . Concession type Financial effects of modification (Dollars in thousands) Principal deferral Principal Reduction (1) Interest rate Forbearance agreement Total number of loans Total recorded investment at June 30, 2014 Net charge-offs (recoveries) Provision for loan losses (2) For the three months ended June 30, 2014 Uncovered Residential real estate $ 144 $ 159 $ — $ 147 9 $ 450 $ — $ 22 Commercial real estate — — 180 99 3 279 — — Commercial and industrial 7 — 61 — 6 68 — (3 ) Consumer — 88 — — 2 88 — — Total uncovered $ 151 $ 247 $ 241 $ 246 20 $ 885 $ — $ 19 Covered Residential real estate $ — $ 14 $ 345 $ — 9 $ 359 $ — $ 22 Commercial real estate — — 652 — 2 652 — 6 Commercial and industrial — — 177 100 5 277 — 11 Total covered $ — $ 14 $ 1,174 $ 100 16 $ 1,288 $ — $ 39 Total loans $ 151 $ 261 $ 1,415 $ 346 36 $ 2,173 $ — $ 58 For the six months ended June 30, 2014 Uncovered Residential real estate $ 144 $ 227 $ 230 $ 147 15 $ 748 $ — $ 127 Commercial real estate — — 894 1,026 8 $ 1,920 (9 ) 197 Commercial and industrial 50 — 61 117 11 $ 228 — 31 Consumer — 88 — — 2 88 — 26 Total uncovered $ 194 $ 315 $ 1,185 $ 1,290 36 $ 2,984 $ (9 ) $ 381 Covered Residential real estate $ 113 $ 14 $ 345 $ — 14 $ 472 $ 6 $ 29 Commercial real estate — — 652 446 3 $ 1,098 — 66 Commercial and industrial — — 203 100 8 303 — 14 Total covered $ 113 $ 14 $ 1,200 $ 546 25 $ 1,873 $ 6 $ 109 Total loans $ 307 $ 329 $ 2,385 $ 1,836 61 $ 4,857 $ (3 ) $ 490 (1) Loan forgiveness related to loans modified in TDRs for the three and six months ended June 30, 2014 totaled $51 thousand and $178 thousand , respectively. (2) The provision for loan losses for covered loans is partially offset by the build of an associated FDIC indemnification asset on covered loans. When a modification qualifies as a TDR and was initially individually accounted for under ASC 310-30, the loan is required to be moved from ASC 310-30 accounting and accounted for under ASC 310-40. In order to accomplish the transfer of the accounting for the TDR from ASC 310-30 to ASC 310-40, the loan is essentially retained in the ASC 310-30 accounting model and subject to the quarterly cash flow re-estimation process. Similar to loans accounted for under ASC 310-30, deterioration in expected cash flows result in the recognition of allowance for loan losses. However, unlike loans accounted for under ASC 310-30, improvements in estimated cash flows on these loans result only in recapturing previously recognized allowance for loan losses and the yield remains at the last yield recognized under ASC 310-30. On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following table presents the number of loans modified in TDRs during the previous 12 months for which there was payment default during the three and six months ended June 30, 2015 and 2014 , including the recorded investment as of June 30, 2015 and 2014 . A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the three months ended June 30, 2015 For the six months ended June 30, 2015 (Dollars in thousands) Total number Total recorded Charged off following Total number Total recorded Charged off following Uncovered Residential real estate 14 $ 1,701 $ — 18 $ 1,875 $ 29 Commercial real estate 11 2,812 144 11 2,812 218 Commercial and industrial 3 30 — 3 30 — Total uncovered 28 4,543 144 32 4,717 247 Covered Residential real estate 3 111 — 3 111 — Commercial real estate 1 130 — 1 130 — Commercial and industrial 1 95 — 1 95 — Total covered 5 336 — 5 336 — Total loans 33 $ 4,879 $ 144 37 $ 5,053 $ 247 For the three months ended June 30, 2014 For the six months ended June 30, 2014 (Dollars in thousands) Total number Total recorded Charged off following Total number Total recorded Charged off following Uncovered Residential real estate 14 $ 951 $ 13 20 $ 1,245 $ 95 Commercial real estate 1 546 — 3 1,797 176 Commercial and industrial 2 135 — 2 135 — Consumer 1 — — 3 — — Total uncovered 18 1,632 13 28 3,177 271 Covered Residential real estate 5 175 — 7 219 12 Commercial real estate 2 546 — 6 669 — Commercial and industrial 2 53 — 9 188 2 Real estate construction — — — 1 346 483 Consumer 1 — — 2 — — Total covered 10 774 — 25 1,422 497 Total loans 28 $ 2,406 $ 13 53 $ 4,599 $ 768 At June 30, 2015 , commitments to lend additional funds to borrowers whose terms have been modified in TDRs totaled $352 thousand . The terms of certain other loans that were modified during the years ended June 30, 2015 and 2014 that did not meet the definition of a TDR generally involved a modification of the terms of a loan to borrowers who were not deemed to be experiencing financial difficulties or a loan accounted for under ASC 310-30 that did not result in a lower effective yield than at the date of acquisition after the modification in association with consideration of qualitative factors included within ASC 310-40. The evaluation of whether or not a borrower is deemed to be experiencing financial difficulty is completed during loan committee meetings at the time of the loan approval. Credit Quality Indicators Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. The Company categorizes commercial and industrial, commercial real estate and real estate construction loans into risk categories based on relevant information about the ability of borrowers to service their debt including, current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The risk rating system is used as a tool to analyze and monitor loan portfolio quality. Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. The following describes each risk category: Pass: Includes all loans without weaknesses or potential weaknesses identified in the categories of special mention, substandard or doubtful. Special Mention: Loans with potential credit weakness or credit deficiency, which, if not corrected, pose an unwarranted financial risk that could weaken the loan by adversely impacting the future repayment ability of the borrower. Substandard: Loans with a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans also are distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Doubtful: Loans with all the characteristics of a loan classified as Substandard, with the added characteristic that credit weaknesses make collection in full highly questionable and improbable. Commercial and industrial, commercial real estate and real estate construction loans by credit risk category were as follows: (Dollars in thousands) Pass Special Mention Substandard Doubtful (1) Total June 30, 2015 Uncovered loans Commercial real estate $ 1,250,671 $ 47,245 $ 97,867 $ — $ 1,395,783 Commercial and industrial 1,008,042 35,986 22,325 — 1,066,353 Real estate construction 169,484 71 5,637 — 175,192 Total $ 2,428,197 $ 83,302 $ 125,829 $ — $ 2,637,328 Covered loans Commercial real estate $ 88,649 $ 6,565 $ 48,684 $ — $ 143,898 Commercial and industrial 13,396 932 10,466 — 24,794 Real estate construction 4,144 67 3,215 — 7,426 Total $ 106,189 $ 7,564 $ 62,365 $ — $ 176,118 December 31, 2014 Uncovered loans Commercial real estate $ 1,153,132 $ 63,567 $ 94,239 $ — $ 1,310,938 Commercial and industrial 824,239 29,511 15,727 — 869,477 Real estate construction 123,822 1,981 5,883 — 131,686 Total $ 2,101,193 $ 95,059 $ 115,849 $ — $ 2,312,101 Covered loans Commercial real estate $ 102,952 $ 16,073 $ 67,637 $ — $ 186,662 Commercial and industrial 16,718 1,875 14,055 — 32,648 Real estate construction 3,817 792 4,780 — 9,389 Total $ 123,487 $ 18,740 $ 86,472 $ — $ 228,699 (1) Prior to January 1, 2015, all nonaccrual loans were included in the “Doubtful” risk category. After further review of regulatory guidance, we have reclassified nonaccrual loans with a determinable value to the “Substandard” risk category; therefore, “Substandard” now includes accrual and nonaccrual loans. This change in classification has been made retrospectively and the reclassification is presented within the December 31, 2014 disclosure. For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans secured by a residence where the debt has been discharged but the borrower continues to make payments are considered nonperforming. The following table presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total June 30, 2015 Uncovered loans Residential real estate $ 1,414,545 $ 20,133 $ 1,434,678 Consumer 171,812 308 172,120 Total $ 1,586,357 $ 20,441 $ 1,606,798 Covered loans Residential real estate $ 94,300 $ 2,071 $ 96,371 Consumer 8,338 20 8,358 Total $ 102,638 $ 2,091 $ 104,729 December 31, 2014 Uncovered Residential real estate $ 1,408,638 $ 17,374 $ 1,426,012 Consumer 164,267 257 164,524 Total $ 1,572,905 $ 17,631 $ 1,590,536 Covered loans Residential real estate $ 106,378 $ 1,848 $ 108,226 Consumer 9,552 13 9,565 Total $ 115,930 $ 1,861 $ 117,791

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2015
Loans and Leases Receivable, Allowance [Abstract]
ALLOWANCE FOR LOAN LOSSES	ALLOWANCE FOR LOAN LOSSES The allowance for loan losses represents management’s assessment of probable, incurred credit losses in the loan portfolio. The allowance for loan losses consists of specific allowances, based on individual evaluation of certain loans, and allowances for homogeneous pools of loans with similar risk characteristics. Management’s evaluation in establishing the adequacy of the allowance includes evaluation of actual past loan loss experience, probable incurred losses in the portfolio, adverse situations that may affect a specific borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, and other pertinent factors, such as periodic internal and external evaluations of delinquent, nonaccrual, and classified loans. The evaluation is inherently subjective as it requires utilizing material estimates. The evaluation of these factors is the responsibility of certain senior officers from the credit administration, finance, and lending areas. The Company established an allowance for loan losses associated with purchased credit impaired loans (accounted for under ASC 310-30) based on credit deterioration subsequent to the acquisition date. The Company re-estimates cash flows expected to be collected for purchased credit impaired loans on a quarterly basis, with any decline in expected cash flows recorded as provision for loan losses on a discounted basis during the period. For any increases in cash flows expected to be collected, the Company first reverses any previously recorded allowance for loan loss, then adjusts the amount of accretable yield recognized on a prospective basis over the loan’s remaining life. For loans not accounted for under ASC 310-30, the Company individually assesses for impairment all nonaccrual loans and TDRs. Information as to impaired loans individually evaluated for impairment is as follows: (Dollars in thousands) Recorded investment with no related allowance Recorded investment with related allowance Total recorded investment Contractual principal balance Related allowance June 30, 2015 Uncovered individually evaluated impaired loans Residential real estate $ 14,124 $ 8,401 $ 22,525 $ 30,095 $ 2,280 Commercial real estate 12,684 6,784 19,468 33,628 1,449 Commercial and industrial 3,647 2,069 5,716 12,386 497 Real estate construction 333 236 569 643 66 Consumer 292 249 541 786 144 Total uncovered individually evaluated impaired loans $ 31,080 $ 17,739 $ 48,819 $ 77,538 $ 4,436 Covered individually evaluated impaired loans Residential real estate $ 2,903 $ 2,752 $ 5,655 $ 7,424 $ 407 Commercial real estate 4,594 13,429 18,023 24,656 1,950 Commercial and industrial 2,130 808 2,938 5,706 327 Real estate construction 619 46 665 989 — Consumer 26 1 27 76 — Total covered individually evaluated impaired loans $ 10,272 $ 17,036 $ 27,308 $ 38,851 $ 2,684 December 31, 2014 Uncovered individually evaluated impaired loans Residential real estate $ 14,316 $ 4,268 $ 18,584 $ 23,080 $ 1,110 Commercial real estate 7,609 5,956 13,565 17,016 1,276 Commercial and industrial 915 1,884 2,799 2,807 982 Real estate construction 174 — 174 174 — Consumer 296 176 472 610 82 Total uncovered individually evaluated impaired loans $ 23,310 $ 12,284 $ 35,594 $ 43,687 $ 3,450 Covered individually evaluated impaired loans Residential real estate $ 2,155 $ 2,583 $ 4,738 $ 6,388 $ 417 Commercial real estate 10,400 11,985 22,385 28,755 1,277 Commercial and industrial 1,545 779 2,324 2,668 109 Real estate construction 670 — 670 994 — Consumer 11 1 12 39 — Total covered individually evaluated impaired loans $ 14,781 $ 15,348 $ 30,129 $ 38,844 $ 1,803 For the three months ended For the six months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Uncovered individually evaluated impaired loans Residential real estate $ 23,128 $ 302 $ 23,277 $ 500 Commercial real estate 20,005 807 20,445 1,282 Commercial and industrial 5,942 93 6,784 282 Real estate construction 580 4 573 25 Consumer 570 10 589 20 Total uncovered individually evaluated impaired loans $ 50,225 $ 1,216 $ 51,668 $ 2,109 Covered individually evaluated impaired loans Residential real estate $ 5,775 $ 98 $ 5,803 $ 174 Commercial real estate 18,203 260 18,329 497 Commercial and industrial 3,094 89 3,333 161 Real estate construction 842 72 901 79 Consumer 27 1 28 2 Total covered individually evaluated impaired loans $ 27,941 $ 520 $ 28,394 $ 913 For the three months ended For the six months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Uncovered individually evaluated impaired loans Residential real estate $ 14,870 $ 134 $ 15,038 $ 279 Commercial real estate 5,686 38 6,280 84 Commercial and industrial 1,668 15 1,676 39 Consumer 34 1 35 2 Total uncovered individually evaluated impaired loans $ 22,258 $ 188 $ 23,029 $ 404 Covered individually evaluated impaired loans Residential real estate $ 4,364 $ 63 $ 4,378 $ 127 Commercial real estate 17,615 266 17,689 533 Commercial and industrial 2,299 21 2,399 44 Real estate construction 412 — 413 9 Consumer 21 1 22 2 Total covered individually evaluated impaired loans $ 24,711 $ 351 $ 24,901 $ 715 Uncovered Loans Changes in the allowance for loan losses and the allocation of the allowance for uncovered loans were as follows: (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total For the three months ended June 30, 2015 Allowance for loan losses - uncovered: Balance at beginning of period $ 10,879 $ 11,161 $ 9,475 $ 1,685 $ 1,277 $ 34,477 Provision (benefit) for loan losses 282 154 679 (93 ) 47 1,069 Gross charge-offs (1,081 ) (2,929 ) (735 ) (272 ) (256 ) (5,273 ) Recoveries 1,008 3,796 1,326 128 35 6,293 Net (charge-offs) recoveries (73 ) 867 591 (144 ) (221 ) 1,020 Ending allowance for loan losses $ 11,088 $ 12,182 $ 10,745 $ 1,448 $ 1,103 $ 36,566 For the six months ended June 30, 2015 Allowance for loan losses - uncovered: Balance at beginning of period $ 12,193 $ 11,128 $ 7,835 $ 1,599 $ 1,064 $ 33,819 Provision (benefit) for loan losses 659 47 3,366 (129 ) 538 4,481 Gross charge-offs (3,218 ) (4,547 ) (2,002 ) (307 ) (579 ) (10,653 ) Recoveries 1,454 5,554 1,546 285 80 8,919 Net (charge-offs) recoveries (1,764 ) 1,007 (456 ) (22 ) (499 ) (1,734 ) Ending allowance for loan losses $ 11,088 $ 12,182 $ 10,745 $ 1,448 $ 1,103 $ 36,566 As of June 30, 2015 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 2,280 $ 1,449 $ 497 $ 66 $ 144 $ 4,436 Collectively evaluated for impairment 3,677 5,185 9,485 584 845 19,776 Accounted for under ASC 310-30 5,131 5,548 763 798 114 12,354 Allowance for loan losses - uncovered: $ 11,088 $ 12,182 $ 10,745 $ 1,448 $ 1,103 $ 36,566 Balance of uncovered loans: Individually evaluated for impairment $ 22,525 $ 19,468 $ 5,716 $ 569 $ 541 $ 48,819 Collectively evaluated for impairment 1,185,771 1,191,695 1,043,907 167,325 169,422 3,758,120 Accounted for under ASC 310-30 226,382 184,620 16,730 7,298 2,157 437,187 Total uncovered loans $ 1,434,678 $ 1,395,783 $ 1,066,353 $ 175,192 $ 172,120 $ 4,244,126 For the three months ended June 30, 2014 Allowance for loan losses - uncovered: Balance at beginning of period $ 9,896 $ 6,776 $ 4,757 $ 1,083 $ 259 $ 22,771 Provision (benefit) for loan losses 695 2,786 425 (618 ) (69 ) 3,219 Gross charge-offs (1,381 ) (3,586 ) (481 ) (28 ) (57 ) (5,533 ) Recoveries 540 1,870 439 961 93 3,903 Net (charge-offs) recoveries (841 ) (1,716 ) (42 ) 933 36 (1,630 ) Ending allowance for loan losses $ 9,750 $ 7,846 $ 5,140 $ 1,398 $ 226 $ 24,360 For the six months ended June 30, 2014 Allowance for loan losses - uncovered: Balance at beginning of period $ 7,708 $ 4,267 $ 3,404 $ 2,027 $ 340 $ 17,746 Provision (benefit) for loan losses 3,559 5,924 1,761 (1,483 ) (118 ) 9,643 Gross charge-offs (2,817 ) (4,831 ) (626 ) (109 ) (123 ) (8,506 ) Recoveries 1,300 2,486 601 963 127 5,477 Net (charge-offs) recoveries (1,517 ) (2,345 ) (25 ) 854 4 (3,029 ) Ending allowance for loan losses $ 9,750 $ 7,846 $ 5,140 $ 1,398 $ 226 $ 24,360 (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total As of December 31, 2014 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 1,110 $ 1,276 $ 982 $ — $ 82 $ 3,450 Collectively evaluated for impairment 4,850 4,623 5,968 649 820 16,910 Accounted for under ASC 310-30 6,233 5,229 885 950 162 13,459 Allowance for loan losses - uncovered: $ 12,193 $ 11,128 $ 7,835 $ 1,599 $ 1,064 $ 33,819 Balance of uncovered loans: Individually evaluated for impairment $ 18,584 $ 13,565 $ 2,799 $ 174 $ 472 $ 35,594 Collectively evaluated for impairment 1,167,905 1,107,225 851,179 123,203 161,663 3,411,175 Accounted for under ASC 310-30 239,523 190,148 15,499 8,309 2,389 455,868 Total uncovered loans $ 1,426,012 $ 1,310,938 $ 869,477 $ 131,686 $ 164,524 $ 3,902,637 Covered Loans Changes in the allowance and the allocation of the allowance for covered loans were as follows: (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total For the three months ended June 30, 2015 Allowance for loan losses - covered: Balance at beginning of period $ 4,159 $ 9,904 $ 2,812 $ 1,075 $ 38 $ 17,988 Provision (benefit) for loan losses (162 ) (6,267 ) (2,083 ) 207 (77 ) (8,382 ) Gross charge-offs (152 ) (777 ) (1,274 ) (454 ) (7 ) (2,664 ) Recoveries 251 6,306 2,638 126 77 9,398 Net (charge-offs) recoveries 99 5,529 1,364 (328 ) 70 6,734 Ending allowance for loan losses $ 4,096 $ 9,166 $ 2,093 $ 954 $ 31 $ 16,340 For the six months ended June 30, 2015 Allowance for loan losses - covered: Balance at beginning of period $ 3,981 $ 13,663 $ 2,577 $ 1,086 $ 46 $ 21,353 Provision (benefit) for loan losses 151 (8,700 ) (1,558 ) 326 (20 ) (9,801 ) Gross charge-offs (476 ) (4,588 ) (2,091 ) (962 ) (165 ) (8,282 ) Recoveries 440 8,791 3,165 504 170 13,070 Net (charge-offs) recoveries (36 ) 4,203 1,074 (458 ) 5 4,788 Ending allowance for loan losses $ 4,096 $ 9,166 $ 2,093 $ 954 $ 31 $ 16,340 As of June 30, 2015 Allowance for loan losses - covered: Individually evaluated for impairment $ 407 $ 1,950 $ 327 $ — $ — $ 2,684 Collectively evaluated for impairment 222 4 29 — 1 256 Accounted for under ASC 310-30 3,467 7,212 1,737 954 30 13,400 Allowance for loan losses - covered: $ 4,096 $ 9,166 $ 2,093 $ 954 $ 31 $ 16,340 Balance of covered loans: Individually evaluated for impairment $ 5,655 $ 18,023 $ 2,938 $ 665 $ 27 $ 27,308 Collectively evaluated for impairment 15,061 1,153 3,636 — 57 19,907 Accounted for under ASC 310-30 75,655 124,722 18,220 6,761 8,274 233,632 Total covered loans $ 96,371 $ 143,898 $ 24,794 $ 7,426 $ 8,358 $ 280,847 For the three months ended June 30, 2014 Allowance for loan losses - covered: Balance at beginning of period $ 5,077 $ 24,062 $ 6,759 $ 2,003 $ 99 $ 38,000 Provision (benefit) for loan losses 91 (5,848 ) (1,411 ) (95 ) (58 ) (7,321 ) Gross charge-offs (412 ) (1,209 ) (1,500 ) (979 ) (30 ) (4,130 ) Recoveries 556 4,270 692 590 86 6,194 Net (charge-offs) recoveries 144 3,061 (808 ) (389 ) 56 2,064 Ending allowance for loan losses $ 5,312 $ 21,275 $ 4,540 $ 1,519 $ 97 $ 32,743 For the six months ended June 30, 2014 Allowance for loan losses - covered: Balance at beginning of period $ 4,696 $ 26,394 $ 7,227 $ 1,984 $ 80 $ 40,381 Provision (benefit) for loan losses 783 (7,839 ) (2,501 ) (178 ) (84 ) (9,819 ) Gross charge-offs (1,275 ) (3,195 ) (2,527 ) (1,004 ) (77 ) (8,078 ) Recoveries 1,108 5,915 2,341 717 178 10,259 Net (charge-offs) recoveries (167 ) 2,720 (186 ) (287 ) 101 2,181 Ending allowance for loan losses $ 5,312 $ 21,275 $ 4,540 $ 1,519 $ 97 $ 32,743 (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total As of December 31, 2014 Allowance for loan losses - covered: Individually evaluated for impairment $ 417 $ 1,277 $ 109 $ — $ — $ 1,803 Collectively evaluated for impairment 123 57 89 7 1 277 Accounted for under ASC 310-30 3,441 12,329 2,379 1,079 45 19,273 Allowance for loan losses - covered: $ 3,981 $ 13,663 $ 2,577 $ 1,086 $ 46 $ 21,353 Balance of covered loans: Individually evaluated for impairment $ 4,738 $ 22,385 $ 2,324 $ 670 $ 12 $ 30,129 Collectively evaluated for impairment 16,973 3,391 6,572 304 84 27,324 Accounted for under ASC 310-30 86,515 160,886 23,752 8,415 9,469 289,037 Total covered loans $ 108,226 $ 186,662 $ 32,648 $ 9,389 $ 9,565 $ 346,490

ACQUIRED LOANS AND LOSS SHARE A

ACQUIRED LOANS AND LOSS SHARE ACCOUNTING	6 Months Ended
	Jun. 30, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract]
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING	ACQUIRED LOANS AND LOSS SHARE ACCOUNTING A significant amount of loans acquired in the CF Bancorp and First Banking Center acquisitions during the year 2010 and the Peoples State Bank and Community Central Bank acquisitions during the year 2011 are covered by loss sharing agreements with the FDIC, whereby the FDIC generally reimburses the Bank for the 80% of losses incurred. The CF Bancorp, First Banking Center and Peoples State Bank loss share agreements also include provisions where a clawback payment, calculated using formulas included within the contracts, is to be made to the FDIC 10 years and 45 days following the acquisition in the event actual losses fail to reach stated levels. The estimated FDIC clawback liability totaled $28.6 million ( $24.0 million related to the CF Bancorp acquisition, $4.5 million related to the First Banking Center acquisition and $119 thousand related to the Peoples State Bank acquisition) at June 30, 2015 compared to $26.9 million ( $22.6 million related to the CF Bancorp acquisition, $4.3 million related to the First Banking Center acquisition and $4 thousand related to the Peoples State Bank acquisition) at December 31, 2014 . Acquired loans were recorded at fair value as of the acquisition date, which includes loans acquired in each FDIC-assisted acquisition and in the First Place Bank, Talmer West Bank and First of Huron, Corp. acquisitions. At the acquisition date, where a loan exhibits evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all principal and interest payments in accordance with the terms of the loan agreement, the Company accounts for the loan under ASC 310-30 and recognizes the expected shortfall of expected future cash flows, as compared to the contractual amount due, as a nonaccretable discount. Any excess of the net present value of expected future cash flows over the acquisition date fair value is recognized as the accretable discount, or accretable yield. We recognize accretion of the accretable discount as interest income over the expected remaining life of the purchased loan. Fair value discounts/premiums created on acquired loans accounted for outside the scope of ASC 310-30 are accounted for under ASC 310-20 and are accreted/amortized into interest income over the remaining term of the loan as an adjustment to the related loans yield. Changes in the carrying amount of accretable discount for purchased loans accounted for under ASC 310-30 were as follows: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 278,825 $ 311,171 $ 277,058 $ 302,287 Additions due to acquisitions — — 5,268 32,764 Discount accretion (19,242 ) (24,342 ) (40,206 ) (47,007 ) Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations 21,642 24,543 51,073 40,907 Other activity, net (1) (21,161 ) (13,952 ) (33,129 ) (31,531 ) Balance at end of period $ 260,064 $ 297,420 $ 260,064 $ 297,420 (1) Primarily includes changes in the accretable discount due to loan payoffs, foreclosures and charge-offs. For loans accounted for under ASC 310-30, the Company remeasures expected cash flows on a quarterly basis. For loans where the remeasurement process results in a decline in expected cash flows, impairment is recorded. To the extent impairment is recorded on covered loans, the indemnification asset is increased to reflect anticipated future cash to be received from the FDIC. Alternatively, when a loan’s remeasurement results in an increase in expected cash flows, the effective yield of the related loan is increased through an addition to the accretable discount. To the extent improvement relates to covered loans, the indemnification asset is first reduced by the writing off of any indemnification asset related to impairment previously recorded with any remaining indemnification asset accreting off over the shorter of the expected term of the loan or the remaining life of the related loss-sharing agreement. The total identified improvement in the cash flow expectations resulting in yield adjustments on a prospective basis during the three months ended June 30, 2015 and 2014 for both covered and uncovered purchased credit impaired loans was $21.6 million and $24.5 million, respectively. During the six months ended June 30, 2015 and 2014, the total identified improvement in the cash flow expectations was $ 51.1 million and $ 40.9 million respectively. The Company also identified declines in the cash flow expectations of certain loans. A decline in the present value of current expected cash flows compared to the previously estimated expected cash flows, due in any part to change in credit, is referred to as credit impairment and recorded as provision for loan losses during the period. Declines in the present value of expected cash flows only from the expected timing of such cash flows is referred to as timing impairment and recognized prospectively as a decrease in yield on the loan. Below is the composition of the recorded investment for loans accounted for under ASC 310-30 at June 30, 2015 and December 31, 2014 . (Dollars in thousands) June 30, December 31, Contractual cash flows $ 1,163,849 $ 1,281,482 Non-accretable difference (232,966 ) (259,519 ) Accretable yield (260,064 ) (277,058 ) Loans accounted for under ASC 310-30 $ 670,819 $ 744,905 The following table details the components and impact of the provision for loan losses on covered loans and the related FDIC loss sharing income. For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Benefit for loan losses - covered: Net impairment recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) $ 1,223 $ 1,066 $ 2,938 $ 2,365 Additional benefit recorded, net of charge-offs, for covered loans (9,605 ) (8,387 ) (12,739 ) (12,184 ) Total benefit for loan losses-covered $ (8,382 ) $ (7,321 ) $ (9,801 ) $ (9,819 ) Less: FDIC loss share income: Income recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) 765 1,923 1,042 3,504 Expense recorded, to offset benefit, for covered loans (6,534 ) (5,942 ) (8,324 ) (7,459 ) Total loss sharing expense due to provision for loan losses-covered (5,769 ) (4,019 ) (7,282 ) (3,955 ) Net (increase) decrease to income before taxes: Net (income) expense recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) 458 (857 ) 1,896 (1,139 ) Net income recorded, for covered loans including those accounted for under ASC 310-20 and ASC 310-40 (3,071 ) (2,445 ) (4,415 ) (4,725 ) Net (increase) decrease to income before taxes $ (2,613 ) $ (3,302 ) $ (2,519 ) $ (5,864 ) (1) The results of re-estimations also included cash flow improvements to be recognized prospectively as an adjustment to the accretable yield on the related covered loans of $8.6 million and $8.0 million for the three months ended June 30, 2015 and 2014 , respectively, and $ 16.7 million and $ 16.4 million for the six months ended June 30, 2015 and 2014, respectively. The following table summarizes the activity related to the FDIC indemnification asset and the FDIC receivable for the three and six months ended June 30, 2015 and 2014 . For further detail on impairment and provision expense related to loans accounted for under ASC Topic 310-30, refer to Note 6, “Allowance for Loan Losses.” For the three months ended June 30, 2015 For the six months ended June 30, 2015 (Dollars in thousands) FDIC Indemnification Asset FDIC Receivable FDIC Indemnification Asset FDIC Receivable Balance at beginning of period $ 50,702 $ 7,839 $ 67,026 $ 6,062 Accretion (8,548 ) — (17,798 ) — Sales and write-downs of other real estate owned (covered) (475 ) 150 (828 ) 16 Net effect of change in allowance on covered assets (1) 490 — (1,200 ) — Reimbursements requested from FDIC (reclassification to FDIC receivable) (5,172 ) 5,172 (10,203 ) 10,203 Decreases due to recoveries net of additional claimable expenses incurred (2) — (6,261 ) — (7,618 ) Claim payments received from the FDIC — (1,357 ) — (3,120 ) Balance at end of period $ 36,997 $ 5,543 $ 36,997 $ 5,543 (1) Primarily includes adjustments for fully claimed and exited loans and the results of remeasurement of expected cash flows under ASC 310-30 accounting. (2) Includes expenses associated with maintaining the underlying properties and legal fees. For the three months ended June 30, 2014 For the six months ended June 30, 2014 (Dollars in thousands) FDIC Indemnification Asset FDIC Receivable FDIC Indemnification Asset FDIC Receivable Balance at beginning of period $ 119,045 $ 8,130 $ 131,861 $ 7,783 Accretion (5,506 ) — (12,224 ) — Sales and write-downs of other real estate owned (covered) (281 ) (55 ) (753 ) (247 ) Net effect of change in allowance on covered assets (1) (6,130 ) — (8,155 ) — Reimbursements requested from FDIC (reclassification to FDIC receivable) (4,434 ) 4,434 (8,035 ) 8,035 Decreases due to recoveries net of additional claimable expenses incurred (2) — (3,433 ) — (4,319 ) Claim payments received from the FDIC — (1,878 ) — (4,054 ) Balance at end of period $ 102,694 $ 7,198 $ 102,694 $ 7,198 (1) Primarily includes adjustments for fully claimed and exited loans and the results of remeasurement of expected cash flows under ASC 310-30 accounting. (2) Includes expenses associated with maintaining the underlying properties and legal fees.

OTHER REAL ESTATE OWNED AND REP

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS	6 Months Ended
	Jun. 30, 2015
Other Real Estate [Abstract]
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS	OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS Changes in other real estate owned and repossessed assets were as follows: Other real estate owned (Dollars in thousands) Uncovered Covered Total other real estate owned Repossessed assets Balance at January 1, 2015 $ 28,247 $ 10,661 $ 38,908 $ 9,835 Additions due to acquisitions 1,260 — 1,260 — Additions due to the adoption of ASU 2014-04 (1) 455 85 540 — Transfers in (2) 12,151 5,670 17,821 847 Capitalized expenditures — — — 2,681 Payments received — — — (2,854 ) Disposals (9,777 ) (7,553 ) (17,330 ) (318 ) Write-downs (1,311 ) (636 ) (1,947 ) (468 ) Change in valuation allowance — — — (2,602 ) Balance at June 30, 2015 $ 31,025 $ 8,227 $ 39,252 $ 7,121 Balance at January 1, 2014 $ 18,384 $ 11,571 $ 29,955 $ 27 Additions due to acquisitions 30,878 — 30,878 — Transfers in (2) 8,826 4,946 13,772 237 Disposals (15,241 ) (4,687 ) (19,928 ) (172 ) Write-downs (1,500 ) (904 ) (2,404 ) — Balance at June 30, 2014 $ 41,347 $ 10,926 $ 52,273 $ 92 (1) The Company adopted the provisions of FASB ASU No. 2014-04, “Reclassification of Residential Real Estate Collaterized Consumer Mortgage Loans Upon Foreclosure” (“ASU 2014-04”) utilizing the prospective transition method. (2) Includes loans transferred to other real estate owned and other repossessed assets and transfers to other real estate owned due to branch or building operation closings/consolidations. At June 30, 2015 , the Company had $727 thousand of other real estate owned and repossessed assets as a result of obtaining physical possession in accordance with ASU 2014-04. In addition, there are $9.6 million of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process, as of June 30, 2015 . Activity in the valuation allowance for repossessed assets during the three and six months ended June 30, 2015 is summarized below. There was no valuation allowance for repossessed assets at any time during the three or six months ended June 30, 2014 . (Dollars in thousands) Valuation allowance For the three months ended June 30, 2015 Beginning balance $ 2,819 Provision for valuation allowance 243 Ending Balance $ 3,062 For the six months ended June 30, 2015 Beginning balance $ 460 Provision for valuation allowance 2,602 Ending Balance $ 3,062 Income and expenses related to other real estate owned and repossessed assets were as follows: (Dollars in thousands) Uncovered Covered Total other real estate owned Repossessed assets For the three months ended June 30, 2015 Net gain on sale $ 1,315 $ 90 $ 1,405 $ — Write-downs (487 ) (98 ) (585 ) (274 ) Provision for valuation allowance (1) — — — (243 ) Net operating expenses (686 ) (27 ) (713 ) — Total $ 142 $ (35 ) $ 107 $ (517 ) For the six months ended June 30, 2015 Net gain (loss) on sale $ 3,173 $ (353 ) $ 2,820 $ (14 ) Write-downs (1,311 ) (636 ) (1,947 ) (468 ) Provision for valuation allowance (1) — — — (2,602 ) Net operating expenses (890 ) (118 ) (1,008 ) (25 ) Total $ 972 $ (1,107 ) $ (135 ) $ (3,109 ) For the three months ended June 30, 2014 Net gain on sale $ 2,998 $ 91 $ 3,089 $ — Write-downs (821 ) (537 ) (1,358 ) — Net operating expenses (919 ) (82 ) (1,001 ) (19 ) Total $ 1,258 $ (528 ) $ 730 $ (19 ) For the six months ended June 30, 2014 Net gain (loss) on sale $ 4,002 $ 231 $ 4,233 $ (4 ) Write-downs (1,500 ) (904 ) (2,404 ) — Net operating expenses (1,545 ) (74 ) (1,619 ) (49 ) Total $ 957 $ (747 ) $ 210 $ (53 ) (1) Recorded as a component of “Other expense” in the Consolidated Statements of Income Note that covered expenses and income are partially offset by the corresponding recording of FDIC loss share income or expense.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	INTANGIBLE ASSETS Core Deposit Intangibles The Company recorded core deposit intangibles (CDIs) associated with each of its acquisitions. CDIs are amortized on an accelerated basis over their estimated useful lives and have an estimated remaining weighted-average useful life of 7.1 years as of June 30, 2015 . The table below presents the Company’s net carrying amount of CDIs. (Dollars in thousands) June 30, December 31, Gross carrying amount $ 23,068 $ 20,658 Accumulated amortization (8,937 ) (7,623 ) Net carrying amount $ 14,131 $ 13,035 Amortization expense recognized on CDIs was $665 thousand and $724 thousand for the three months ended June 30, 2015 and 2014 , respectively, and $ 1.3 million and $ 1.5 million for the six months ended June 30, 2015 and 2014, respectively, included as a component of “other expense” in the Consolidated Statements of Income. Goodwill The Company recorded goodwill in the amount of $3.5 million associated with the acquisition of First of Huron Corporation completed February 6, 2015. Goodwill is deemed to have an indefinite life and is not amortized but instead is subject to an annual review for impairment.

LOAN SERVICING RIGHTS

LOAN SERVICING RIGHTS	6 Months Ended
	Jun. 30, 2015
LOAN SERVICING RIGHTS
LOAN SERVICING RIGHTS	LOAN SERVICING RIGHTS Loan servicing rights are created as a result of the Company’s mortgage banking origination activities, the purchase of mortgage servicing rights, the origination and purchase of commercial real estate servicing rights and the origination and purchase of agricultural servicing rights. Loans serviced for others are not reported as assets in the Consolidated Balance Sheets. The following table represents the activity for loan servicing rights and the related fair value changes. (Dollars in thousands) Commercial Real Estate Agricultural Mortgage Total For the three months ended June 30, 2015 Fair value, beginning of period $ 621 $ — $ 53,788 $ 54,409 Additions from loans sold with servicing retained — — 2,933 2,933 Changes in fair value due to: Reductions from loans paid off during the period (24 ) — (1,570 ) (1,594 ) Changes due to valuation inputs or assumptions (1) (17 ) — 3,163 3,146 Fair value, end of period $ 580 $ — $ 58,314 $ 58,894 For the six months ended June 30, 2015 Fair value, beginning of period $ 691 $ — $ 69,907 $ 70,598 Additions from loans sold with servicing retained — — 5,848 5,848 Reduction from loans sold and servicing rights sold (2) — — (12,702 ) (12,702 ) Changes in fair value due to: Reductions from loans paid off during the period (53 ) — (3,859 ) (3,912 ) Changes due to valuation inputs or assumptions (1) (58 ) — (880 ) (938 ) Fair value, end of period $ 580 $ — $ 58,314 $ 58,894 Principal balance of loans serviced $ 187,948 $ — $ 5,835,932 $ 6,023,880 For the three months ended June 30, 2014 Fair value, beginning of period $ 1,079 $ 894 $ 75,919 $ 77,892 Additions from loans sold with servicing retained — 57 2,102 2,159 Changes in fair value due to: Reductions from loans paid off during the period (11 ) (68 ) (1,668 ) (1,747 ) Changes due to valuation inputs or assumptions (1) (231 ) (7 ) (3,962 ) (4,200 ) Fair value, end of period $ 837 $ 876 $ 72,391 $ 74,104 For the six months ended June 30, 2014 Fair value, beginning of period $ 368 $ 962 $ 77,273 $ 78,603 Additions due to acquisition 767 — — 767 Additions from loans sold with servicing retained — 123 3,625 3,748 Changes in fair value due to: Reductions from loans paid off during the period (68 ) (137 ) (2,404 ) (2,609 ) Changes due to valuation inputs or assumptions (1) (230 ) (72 ) (6,103 ) (6,405 ) Fair value, end of period $ 837 $ 876 $ 72,391 $ 74,104 Principal balance of loans serviced $ 234,921 $ 41,518 $ 7,109,497 $ 7,385,936 (1) Represents estimated fair value changes primarily due to prepayment speeds and market-driven changes in interest rates. (2) $12.7 million of servicing rights were sold during the six months ended June 30, 2015 in connection with the sale of $1.2 billion of principal balance of loans serviced. Expected and actual loan prepayment speeds are the most significant factors driving the fair value of loan servicing rights. The following table presents assumptions utilized in determining the fair value of loan servicing rights as of June 30, 2015 and December 31, 2014 . Commercial Real Estate Mortgage As of June 30, 2015 Prepayment speed 6.08 - 50.00% 3.68 - 36.97% Weighted average (“WA”) discount rate 19.48 % 9.16 % WA cost to service/per year $ 470 $ 61 WA ancillary income/per year N/A 35 WA float range 0.56 % 1.19-1.69% As of December 31, 2014 Prepayment speed 6.41-50.00% 3.63-40.07% WA discount rate 19.48 % 9.14 % WA cost to service/per year $ 470 $ 61 WA ancillary income/per year N/A 35 WA float range 0.56 % 1.16-1.74% The Company realized total loan servicing fee income of $2.5 million and $3.7 million for the three months ended June 30, 2015 and 2014 , respectively, and $ 5.1 million and $ 7.3 million for the six months ended June 30, 2015 and 2014, respectively, recorded as a component of “Mortgage banking and other loan fees” in the Consolidated Statements of Income.

DERIVATIVE INSTRUMENTS AND BALA

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING	DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING In the normal course of business, the Company enters into various transactions involving derivative instruments to manage exposure to fluctuations in interest rates and to meet the financing needs of customers (customer-initiated derivatives). These financial instruments involve, to varying degrees, elements of market and credit risk. Market and credit risk are included in the determination of fair value. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to enter into forward commitments for the future delivery of mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. The Company enters into interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies, customer-initiated derivatives, and, therefore, are not used for interest rate risk management purposes. The Company generally takes offsetting positions with dealer counterparts to mitigate the inherent risk. Income primarily results from the spread between the customer derivative and the offsetting dealer positions. The Company additionally utilizes interest rate swaps designated as cash flow hedges for risk management purposes to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. These interest rate swaps designated as cash flow hedges are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings and/or deposits. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative instrument with the changes in cash flows of the designated hedged transactions. The interest rate swaps designated as cash flow hedges were determined to be fully effective during all periods presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedge no longer be considered effective. The Company expects the hedges to remain fully effective and does not expect any amounts to be reclassified from accumulated other comprehensive income due to ineffectiveness during the remaining terms of the swaps. The following table presents the notional amount and fair value of the Company’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and mortgage banking activities. June 30, 2015 December 31, 2014 Fair Value Fair Value (Dollars in thousands) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Risk management purposes: Derivatives designated as hedging instruments: Interest rate swaps $ 22,000 $ 337 $ 134 $ 12,000 $ — $ 222 Total risk management purposes 22,000 337 134 12,000 — 222 Customer-initiated and mortgage banking activities: Forward contracts related to mortgage loans to be delivered for sale 196,416 863 — 114,828 — 803 Interest rate lock commitments 122,622 2,029 — 67,817 1,489 — Customer-initiated derivatives 226,551 2,011 1,870 125,356 1,588 1,477 Total customer-initiated and mortgage banking activities 545,589 4,903 1,870 308,001 3,077 2,280 Total gross derivatives $ 567,589 $ 5,240 $ 2,004 $ 320,001 $ 3,077 $ 2,502 (1) Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. (2) Derivative assets are included within “Other assets” and derivative liabilities are included within “Other liabilities” on the Consolidated Balance Sheets. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $66 thousand at June 30, 2015 and $103 thousand at December 31, 2014 . In the normal course of business, the Company may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in “Net gain on sales of loans” in the Consolidated Statements of Income and is considered a cost of executing a forward contract. The following table presents the net gains (losses) related to derivative instruments reflecting the changes in fair value. For the three months ended For the the six months ended (Dollars in thousands) Location of Gain (Loss) 2015 2014 2015 2014 Forward contracts related to mortgage loans to be delivered for sale Net gain on sale of loans $ 2,355 $ (6,915 ) $ 1,211 $ (9,909 ) Interest rate lock commitments Net gain on sale of loans (1,620 ) 1,274 542 1,136 Customer-initiated derivatives Other noninterest income (122 ) 6 (38 ) 19 Total gain (loss) recognized in income $ 613 $ (5,635 ) $ 1,715 $ (8,754 ) The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and six months ended June 30, 2015 . We had no interest rate swaps designated as cash flow hedges in the three and six months ended June 30, 2014 . (Dollars in thousands) Amount of gain (loss) recognized in other comprehensive income (Effective portion) Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion) Amount of gain (loss) recognized in other non interest income (Ineffective portion) For the three months ended June 30, 2015 Interest rate swaps designated as cash flow hedges $ 558 $ (104 ) $ — For the six months ended June 30, 2015 Interest rate swaps designated as cash flow hedges $ 233 $ (192 ) $ — At June 30, 2015 , the Company expected $363 thousand of unrealized losses to be reclassified as an increase to interest expense during the following 12 months. Methods and assumptions used by the Company in estimating the fair value of its forward contracts, interest rate lock commitments, customer-initiated derivatives and interest rate swaps designated as cash flow hedges are discussed in Note 3, “Fair Value”. Balance Sheet Offsetting Certain financial instruments, including derivatives (interest rate swaps designated as cash flow hedges and customer-initiated derivatives), may be eligible for offset in the Consolidated Balance Sheet and/or subject to master netting arrangements or similar agreements. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The tables below present information about the Company’s financial instruments that are eligible for offset. Gross amounts not offset in the statement of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statement of financial condition Net amounts presented in the statement of financial position Financial instruments Collateral (received)/posted Net Amount June 30, 2015 Offsetting derivative assets Derivative assets $ 2,348 $ — $ 2,348 $ (2,004 ) $ 1,570 $ 1,914 Offsetting derivative liabilities Derivative liabilities 2,004 — 2,004 (2,004 ) — — December 31, 2014 Offsetting derivative assets Derivative assets $ 1,588 $ — $ 1,588 $ (1,588 ) $ 1,689 $ 1,689 Offsetting derivative liabilities Derivative liabilities 1,699 — 1,699 (1,588 ) 111 —

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND GUARANTEES	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND GUARANTEES	COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. The Company’s exposure to credit loss, in the event of nonperformance by the counterparty to the financial instrument, is represented by the contractual amounts of those instruments. The credit policies used in making commitments and conditional obligations are the same as those used for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer provided there is no violation of any condition established in the commitment. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on an individual basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. The collateral held varies, but may include securities, real estate, accounts receivable, inventory, plant, or equipment. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are included in commitments to extend credit. These lines of credit are generally uncollateralized, usually do not contain a specified maturity date and may be drawn upon only to the total extent to which the Company is committed. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The Company’s portfolio of standby letters of credit consists primarily of performance assurances made on behalf of customers who have a contractual commitment to produce or deliver goods or services. The risk to the Company arises from its obligation to make payment in the event of the customers’ contractual default to produce the contracted good or service to a third party. The allowance for credit losses on lending-related commitments included $617 thousand and $539 thousand at June 30, 2015 and December 31, 2014 , respectively, for probable credit losses inherent in the Company’s unused commitments and was recorded in “Other liabilities” in the Consolidated Balance Sheets. A summary of the contractual amounts of the Company’s exposure to off-balance sheet risk is as follows: June 30, 2015 December 31, 2014 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Commitments to extend credit $ 642,049 $ 623,846 $ 1,265,895 $ 502,762 $ 463,362 $ 966,124 Standby letters of credit 62,313 3,441 65,754 69,305 4,197 73,502 Total commitments $ 704,362 $ 627,287 $ 1,331,649 $ 572,067 $ 467,559 $ 1,039,626 Contingencies and Guarantees The Company has originated and sold certain loans for which the buyer has limited recourse to us in the event the loans do not perform as specified in the agreements. These loans had an outstanding balance of $26.8 million and $39.8 million at June 30, 2015 and December 31, 2014 , respectively. The maximum potential amount of undiscounted future payments that we could be required to make in the event of nonperformance by the borrower totaled $20.2 million and $31.6 million at June 30, 2015 and December 31, 2014 , respectively. In the event of nonperformance, we have rights to the underlying collateral securing the loans. As of June 30, 2015 and December 31, 2014 , we had recorded a liability of $170 thousand and $355 thousand, respectively, in connection with the recourse agreements, recorded in “Other liabilities” in the Consolidated Balance Sheets. We issue standby letters of credit for commercial customers to third parties to guarantee the performance of those customers to the third parties. If the customer fails to perform, we perform in their place and record the funds advanced as an interest-bearing loan. These letters of credit are underwritten using the same policies and criteria applied to commercial loans. Therefore, they represent the same risk to us as a loan to that commercial loan customer. At June 30, 2015 and December 31, 2014 , our standby letters of credit totaled $65.8 million and $73.5 million, respectively. Representations and Warranties In connection with our mortgage banking loan sales, we make certain representations and warranties that the loans meet certain criteria, such as collateral type and underwriting standards. We may be required to repurchase individual loans and/or indemnify the purchaser against losses if the loan fails to meet established criteria. At June 30, 2015 and December 31, 2014 , our liability recorded in connection with these representations and warranties totaled $2.0 million and $4.0 million, respectively. Legal Proceedings The Company and certain of its subsidiaries are subject to various pending or threatened legal proceedings arising out of the normal course of business. Some of these claims are against entities or assets of which the Company has acquired in business acquisitions, and certain of these claims, or future claims, will be covered by loss sharing agreements with the FDIC. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, in the opinion of management, any liabilities arising from pending legal proceedings would not have a material adverse effect on the Company’s financial statements.

SHORT-TERM BORROWINGS AND LONG-

SHORT-TERM BORROWINGS AND LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
SHORT-TERM BORROWINGS AND LONG-TERM DEBT	SHORT-TERM BORROWINGS AND LONG-TERM DEBT The following table presents the components of the Company’s short-term borrowings and long-term debt. June 30, 2015 December 31, 2014 (Dollars in thousands) Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings: Securities sold under agreements to repurchase: 0.05% - 0.10% variable-rate notes $ 23,945 0.10 % $ 25,743 0.10 % FHLB advances: 0.24% - 0.30% fixed-rate notes 200,000 0.27 100,000 0.29 FHLB advances: 0.43% variable-rate notes — — 10,000 0.43 Holding company line of credit: floating-rate based on one-month LIBOR plus 3.00% 30,000 3.19 — — Total short-term borrowings 253,945 0.60 135,743 0.26 Long-term debt: FHLB advances: 0.26% - 7.44% fixed-rate notes due 2015 to 2027 (2) 344,001 1.40 286,804 1.57 Securities sold under agreements to repurchase: 4.11% - 4.30% fixed-rate notes due 2016 to 2037 (3) 55,623 4.19 56,444 4.19 Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 (4) 10,794 2.52 10,724 2.48 Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due September 2032 (5) 4,529 3.53 — — Total long-term debt 414,947 1.83 353,972 2.02 Total short-term borrowings and long-term debt $ 668,892 1.36 % $ 489,715 1.53 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The June 30, 2015 balance includes advances payable of $338.5 million and purchase accounting premiums of $5.5 million . The December 31, 2014 balance includes advances payable of $280.1 million and purchase accounting premiums of $6.7 million . (3) The June 30, 2015 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $5.6 million . The December 31, 2014 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $6.4 million . (4) The June 30, 2015 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.2 million . The December 31, 2014 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.3 million . (5) The June 30, 2015 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $471 thousand . Selected financial information pertaining to the components of our short-term borrowings is as follows: For the three months ended June 30, For the six months ended June 30, (Dollars in thousands) 2015 2014 2015 2014 Securities sold under agreement to repurchase: Average daily balance $ 19,390 $ 86,444 $ 19,911 $ 77,054 Average interest rate during the period 0.10 % 0.13 % 0.10 % 0.11 % Maximum month-end balance $ 23,945 $ 148,826 $ 23,945 $ 148,826 FHLB advances: Average daily balance $ 33,517 $ 38,806 $ 26,022 $ 19,634 Average interest rate during the period 0.27 % 0.13 % 0.27 % 0.16 % Maximum month-end balance $ 200,000 $ 90,000 $ 200,000 $ 90,000 Federal funds purchased: Average daily balance $ — $ 1,132 $ 696 $ 2,254 Average interest rate during the period — % 0.28 % 0.31 % 0.25 % Maximum month-end balance $ — $ — $ 126,000 $ — FHLB overnight repurchase agreements: Average daily balance $ — $ — $ — $ 4,420 Average interest rate during the period — % — % — % 0.10 % Maximum month-end balance $ — $ — $ — $ — Holding company line of credit: Average daily balance $ 22,912 $ — $ 16,271 $ 11,215 Average interest rate during the period 3.18 % — % 3.18 % 3.17 % Maximum month-end balance $ 30,000 $ — $ 30,000 $ 35,000 Securities sold under agreements to repurchase represent funds deposited with the banks by retail customers (short-term borrowings), of which up to $250 thousand is covered by FDIC insurance for each depositor. Securities sold under agreements to repurchase are typically delivered to the counterparty when they are wholesale borrowings with brokerage firms (long-term debt). At maturity, the securities underlying the agreements are returned to the banks. Securities sold under agreements to repurchase are additionally collateralized by residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government sponsored enterprises with a carrying value of $83.7 million at June 30, 2015 which are not covered by FDIC insurance. The Company's securities sold under agreements to repurchase do not qualify as sales for accounting purposes. Our subsidiary banks are members of the FHLB, which provides short- and long-term funding collateralized by mortgage-related assets to its members. Each advance is payable at its maturity date, with a prepayment penalty for fixed-rate advances. At June 30, 2015 , FHLB advances were collateralized by $2.1 billion of commercial and mortgage loans, with $1.2 billion in the form of a blanket lien arrangement and $903.4 million under specific lien arrangements. Based on this collateral, the Company is eligible to borrow up to an additional $808.5 million at June 30, 2015 ; however, due to Board resolutions, this amount is limited to an additional $440.3 million . In the first half of 2015 , we drew $20.0 million in order to facilitate our repurchase of 2.5 million warrants to repurchase shares of our Class A common stock of an aggregate purchase price of $19.9 million and $ 10.0 million for working capital on our existing line of credit.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Provision for income taxes is computed by applying an estimated annual effective tax rate, based on our forecast of annual income from continuing operations, and then adjusting for any additional tax effects required to be recorded discreetly in the quarter to which they relate. A reconciliation of expected income tax expense (benefit) at the federal statutory rate to the Company’s provision for income taxes and effective tax rate follows. For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Amount Rate Amount Rate Amount Rate Amount Rate Tax based on federal statutory rate $ 9,004 35.0 % $ 5,726 35.0 % $ 13,860 35.0 % $ 18,526 35.0 % Effect of: Tax exempt income (644 ) (2.6 ) (475 ) (2.9 ) (1,275 ) (3.2 ) (1,202 ) (2.3 ) State taxes, net of federal benefit 194 0.8 201 1.2 460 1.2 469 0.9 Change in valuation allowance — — (9,749 ) (59.6 ) — — (10,127 ) (19.1 ) Bargain purchase gain — — — — — — (14,692 ) (27.9 ) Transaction costs 18 0.1 426 2.6 47 0.1 454 0.9 Other, net (393 ) (1.5 ) (375 ) (2.3 ) (472 ) (1.2 ) 670 1.3 Income tax expense (benefit) $ 8,179 31.8 % $ (4,246 ) (26.0 )% $ 12,620 31.9 % $ (5,902 ) (11.2 )%

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company’s 2009 Equity Incentive Plan (the “Plan”), along with amendments made to the Plan, limits the number of shares issued or issuable to employees, directors and certain consultants at 9.8 million shares of common stock. As of June 30, 2015 , 1.2 million shares were available to be awarded under the Plan. Stock Options Options are granted with an exercise price equal to or greater than the fair market price of the Company’s common stock at the date of grant. The vesting and terms of option awards are determined by the Company’s Compensation Committee of the Board of Directors. For the six months ended June 30, 2015 , there were no stock options granted. During the six months ended June 30, 2014, the Company granted 35 thousand stock options that were fully vested upon issuance and will remain outstanding for 10 years after the grant date. The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the table below. Given the relatively short history of Company stock being publicly traded during the six months ended June 30, 2014, post our public offering in February of 2014, it was not practicable for the Company to estimate volatility of its share price. For the six months ended June 30, 2014 the Company used the average volatility of comparable public Bank holding companies as an input to the valuation model. Since limited historical data is available, the expected term of options granted was estimated to be six years for the six months ended June 30, 2014 based on expected lives used by a sample of other Midwest banks. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of the grant corresponding with the expected life of the options. The expected dividend yield is based on historical and projected dividend patterns of the Company’s common shares. At the time the shares were granted in 2014 there were not any expected dividends projected. All shares granted are expected to vest and the Company intends to issue already authorized shares to satisfy options upon exercise. The fair value of options granted during the six months ended June 30, 2014 was determined using the following weighted-average assumptions as of the grant date. For the six months ended June 30, 2014 Fair value of options granted $ 4.77 Expected dividend yield — % Expected volatility 30.02 % Risk-free interest rate 1.98 % Expected life (in years) 6.00 Activity in the Plan during the six months ended June 30, 2015 is summarized below: Weighted Average Number of Shares (in thousands) Exercise Price per Share Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 7,958 $ 6.96 Exercised (1) (599 ) 6.77 Outstanding at June 30, 2015 7,359 6.98 6.22 71,894 Options fully vested 7,359 6.98 6.22 71,894 Exercisable at June 30, 2015 7,359 6.98 6.22 71,894 (1) Options exercised during the six months ended June 30, 2015 had a weighted average fair value of $15.74 , at respective exercise dates. The total intrinsic value of stock options exercised was $5.4 million for the six months ended June 30, 2015 . Total cash received from option exercises during the six months ended June 30, 2015 was $210 thousand , resulting in the issuance of 35 thousand shares. During the three months ended June 30, 2015 , there were 210 thousand shares issued under the net-settlement option. The tax benefit realized from option exercises during the six months ended June 30, 2015 was $1.4 million . All of the Company’s shares were fully vested prior to January 1, 2015 and there was no unrecognized compensation cost related to nonvested stock options granted under the Plan. Total compensation expense for stock options, included in “Salary and employee benefits” in the Consolidated Statements of Income, was $207 thousand and $387 thousand for the three and six months ended June 30, 2014 , respectively. Restricted Stock Awards Under the Plan, the Company can grant restricted stock awards that vest upon completion of future service requirements or specified performance criteria. The fair value of these awards is equal to the market price of the common stock at the date of grant. The Company recognizes stock-based compensation expense for these awards over the vesting period, using the straight-line method, based upon the number of shares of restricted stock ultimately expected to vest. Restricted stock awards granted vest in their entirety following a five -year service period for employees and over a one -year service period for directors. Restricted stock awards granted to directors during the six months ended June 30, 2015 additionally contain performance-based vesting conditions. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If an individual awarded restricted stock awards terminates employment prior to the end of the vesting period, the unvested portion of the stock award is forfeited. The following table provides information regarding nonvested restricted stock awards: Nonvested Restricted Stock Awards Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2015 378 $ 14.44 Granted 354 14.98 Vested (19 ) 14.44 Forfeited (2 ) 14.44 Nonvested at June 30, 2015 711 $ 14.71 Total expense for restricted stock awards totaled $515 thousand for the three months ended June 30, 2015 , of which $441 thousand was included in “Salary and employee benefits” related to employees and $74 thousand was included in “Professional fees” related to directors in the Consolidated Statements of Income. For the six months ended June 30, 2015, total expense for restricted stock awards totaled $866 thousand , of which $739 thousand was included in "Salary and employee benefits" related to employees and $127 thousand was included in "Professional fees" related to directors in the Consolidated Statements of Income. For the three and six months ended June 30, 2014, total expense for restricted stock awards totaled $67 thousand for both periods, of which $50 thousand was included in "Salary and employee benefits" related to employees and $17 thousand was included in "Professional fees" related to director in the Consolidated Statements of Income. As of June 30, 2015 , the total compensation costs related to nonvested restricted stock that has not yet been recognized totaled $9.2 million and the weighted-average period over which these costs are expected to be recognized is 4.2 years .

REGULATORY CAPITAL MATTERS

REGULATORY CAPITAL MATTERS	6 Months Ended
	Jun. 30, 2015
Banking and Thrift [Abstract]
REGULATORY CAPITAL MATTERS	REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of June 30, 2015 , the Company and its subsidiary banks met all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. Effective January 1, 2015 we adopted the new Basel III regulatory capital framework as approved by federal banking agencies, which are subject to a multi-year phase-in period. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. In addition, Basel III establishes a new capital conservation buffer of 2.5% of risk-weighted assets, which is phased-in over a four -year period beginning January 1, 2016. At June 30, 2015 and December 31, 2014 , the most recent regulatory notifications categorized Talmer Bank and Trust as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The capital ratios of Talmer West Bank at June 30, 2015 exceed the total capital (to risk-weighted assets) ratio of at least 12.0% and a Tier 1 capital (to adjusted total assets) ratio of at least 9.0% as prescribed in the Consent Order by the FDIC and the Michigan Department of Insurance and Financial Services on April 5, 2010. Notwithstanding its capital levels, Talmer West Bank will not be categorized as well capitalized while it is subject to the Consent Order. Consent Order On April 5, 2010, Michigan Commerce Bank consented to the issuance of the Consent Order by the FDIC and the Michigan Department of Insurance and Financial Services, which remains in effect following our acquisition of Talmer West Bank, as the surviving bank in the merger, on January 1, 2014. The Consent Order represents an agreement to take certain actions, including, among other things: assessing and retaining qualified management; achieving and maintaining specified capital ratios; reducing certain classified assets, including the charge-off of loans classified ‘‘loss;’’ reviewing the allowance for loan and lease losses policy; implementing a comprehensive profit plan and budget; implementing a plan to manage concentrations of credit; and revising the bank’s policies governing interest rate risk. The Consent Order also prohibits Talmer West Bank, without prior regulatory approval, from paying dividends, retaining new directors or senior executive officers, or entering into any material transaction. The following is a summary of actual and required capital amounts and ratios in accordance with current regulatory standards: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2015 (Basel III Transitional) Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 772,889 15.0 % $ 412,749 8.0 % N/A N/A Talmer Bank and Trust 653,191 14.2 368,064 8.0 $ 460,080 10.0 % Talmer West Bank (1) 136,659 24.8 44,168 8.0 N/A N/A Common equity tier 1 capital Talmer Bancorp, Inc. (Consolidated) 717,196 13.9 232,171 4.5 N/A N/A Talmer Bank and Trust 606,576 13.2 207,036 4.5 299,052 6.5 Talmer West Bank (1) 129,474 23.5 24,844 4.5 N/A N/A Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 717,196 13.9 309,561 6.0 N/A N/A Talmer Bank and Trust 606,576 13.2 276,048 6.0 368,064 8.0 Talmer West Bank (1) 129,474 23.5 33,126 6.0 N/A N/A Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 717,196 11.5 249,398 4.0 N/A N/A Talmer Bank and Trust 606,576 11.1 217,889 4.0 272,361 5.0 Talmer West Bank (1) 129,474 16.6 31,213 4.0 N/A N/A December 31, 2014 (Basel I) Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 720,552 16.4 % $ 350,645 8.0 % N/A N/A Talmer Bank and Trust 627,851 16.3 308,374 8.0 $ 385,468 10.0 % Talmer West Bank (1) 101,926 19.6 41,628 8.0 N/A N/A Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 666,035 15.2 175,323 4.0 N/A N/A Talmer Bank and Trust 579,604 15.0 154,187 4.0 231,281 6.0 Talmer West Bank (1) 95,656 18.4 20,814 4.0 N/A N/A Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 666,035 11.6 230,546 4.0 N/A N/A Talmer Bank and Trust 579,604 11.6 200,128 4.0 250,160 5.0 Talmer West Bank (1) 95,656 12.4 30,786 4.0 N/A N/A (1) Notwithstanding its capital levels, Talmer West Bank will not be categorized as well capitalized while it is subject to the Consent Order. The Company’s principal source of funds for dividend payments is dividends received from its subsidiary banks. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Talmer Bank and Trust cannot declare or pay a cash dividend or dividend in kind unless Talmer Bank and Trust will have a surplus amounting to not less than 20% of its capital after payment of the dividend. In addition, Talmer Bank and Trust may pay dividends only out of net income then on hand, after deducting its losses and bad debts. These limitations can affect Talmer Bank and Trust’s ability to pay dividends. During the three months ended June 30, 2015 and 2014 , Talmer Bank and Trust paid no dividends, while for the six months ended June 30, 2015 and 2014, dividends of $15.0 million and $25.0 million , respectively, were paid to the Company. Under FDIC regulations, limitations are imposed on all of Talmer West Bank’s capital distributions, including cash dividends. As of June 30, 2015 , Talmer West Bank was not able to pay any dividends without prior regulatory approval. On July 29, 2015, a cash dividend on the Company’s Class A common stock of $0.01 per share was declared. The dividend will be paid on August 21, 2015, to the Company’s Class A common shareholders of record as of August 10, 2015.

PARENT COMPANY FINANCIAL STATEM

PARENT COMPANY FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
PARENT COMPANY FINANCIAL STATEMENTS	PARENT COMPANY FINANCIAL STATEMENTS Balance Sheets - Parent Company (Dollars in thousands) June 30, December 31, Assets Cash and cash equivalents $ 10,628 $ 9,497 Investment in banking subsidiaries 792,467 756,452 Income tax benefit 8,429 7,975 Other assets 681 655 Total assets $ 812,205 $ 774,579 Liabilities Short-term borrowings $ 30,000 $ — Long-term debt 15,322 10,724 Accrued expenses and other liabilities 477 2,248 Total liabilities 45,799 12,972 Shareholders’ equity 766,406 761,607 Total liabilities and shareholders’ equity $ 812,205 $ 774,579 Statements of Income and Comprehensive Income - Parent Company For the three months ended June 30, For the six months ended June 30, (Dollars in thousands) 2015 2014 2015 2014 Income Dividend income from subsidiary $ — $ — $ 15,000 $ 25,000 Bargain purchase gain — — — 41,977 Other noninterest income 4 3 9 5 Total income 4 3 15,009 66,982 Expenses Salaries and employee benefits 1,671 2,042 2,892 5,955 Bank acquisition and due diligence fees 159 266 1,155 1,974 Professional service fees 491 492 868 1,086 Insurance expense 33 213 113 367 Marketing expense 35 26 49 191 Interest on short-term borrowings 187 — 261 151 Interest on long-term debt 182 125 344 252 Other 59 80 173 147 Total expenses 2,817 3,244 5,855 10,123 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries (2,813 ) (3,241 ) 9,154 56,859 Income tax benefit 1,082 420 1,735 2,457 Equity in (over)/under distributed earnings of subsidiaries 19,279 23,427 16,092 (483 ) Net income $ 17,548 $ 20,606 $ 26,981 $ 58,833 Total comprehensive income, net of tax $ 17,548 $ 20,606 $ 26,981 $ 58,833 Statements of Cash Flows - Parent Company For the six months ended June 30, (Dollars in thousands) 2015 2014 Cash flows from operating activities Net income $ 26,981 $ 58,833 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries (16,092 ) 483 Gain on acquisition — (41,977 ) Stock-based compensation expense 371 248 (Increase) decrease in income tax benefit (71 ) 139 Decrease in other assets, net 168 629 Increase (decrease) in accrued expenses and other liabilities, net (4,194 ) 317 Net cash from operating activities 7,163 18,672 Cash flows from investing activities Cash (used in) proceeds from acquisitions (13,323 ) (6,500 ) Capital contributions to subsidiaries — (99,500 ) Refund of investment 2,225 — Net cash used in investing activities (11,098 ) (106,000 ) Cash flows from financing activities Issuance of common stock — 42,075 Restricted stock awards tax benefits 16 — Exercise of stock options, including tax benefit (143 ) (661 ) Repurchase of warrants to repurchase 2.5 million shares, at fair value (19,892 ) — Cash dividends paid on common stock (1) (1,415 ) — Draw on senior unsecured line of credit 30,000 — Repayment of senior unsecured line of credit — (35,000 ) Repayment of long-term debt (3,500 ) — Net cash from financing activities 5,066 6,414 Net increase (decrease) in cash and cash equivalents 1,131 (80,914 ) Beginning cash and cash equivalents 9,497 98,411 Ending cash and cash equivalents $ 10,628 $ 17,497 (1) $0.02 per share for the six months ended June 30, 2015 .

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
EARNINGS PER COMMON SHARE	EARNINGS PER COMMON SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participating rights in undistributed earnings. Common shares outstanding include common stock and vested restricted stock awards, when applicable. The factors used in the earnings per share computation follow: For the three months ended For the six months ended (In thousands, except per share data) 2015 2014 2015 2014 Net income $ 17,548 $ 20,606 $ 26,981 $ 58,833 Net income allocated to participating securities 174 26 211 37 Net income allocated to common shareholders (1) $ 17,374 $ 20,580 $ 26,770 $ 58,796 Weighted average common shares - issued 71,006 70,107 70,814 69,115 Average unvested restricted share awards (705 ) (86 ) (555 ) (44 ) Weighted average common shares outstanding - basic 70,301 70,021 70,259 69,071 Effect of dilutive securities - Employee and director stock options 4,339 4,112 4,174 3,991 Warrants 260 1,526 613 1,469 Weighted average common shares outstanding - diluted 74,900 75,659 75,046 74,531 EPS available to common shareholders Basic $ 0.25 $ 0.29 $ 0.38 $ 0.85 Diluted $ 0.23 $ 0.27 $ 0.36 $ 0.79 (1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options and warrants to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share. For the effect of dilutive securities, the average stock valuation is $16.14 per share and $13.77 per share for the three months ended June 30, 2015 and 2014 , respectively and the average stock valuation is $ 15.12 per share and assumed to be $ 13.24 per share for the six months ended June 30, 2015 and 2014, respectively. The following average shares related to outstanding options and warrants to purchase shares of common stock were not included in the computation of diluted net income available to common shareholders because they were antidilutive. There were no outstanding antidilutive warrants or options during the three and six months ended June 30, 2015 and no outstanding antidilutive warrants or options for the three and six months ended June 30, 2014 . (Shares in thousands) For the three months ended For the six months ended Average outstanding options 8 4 Outstanding exercise prices: Low end $ 14.44 $ 14.44 High end $ 14.44 $ 14.44

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (Dollars in thousands) Unrealized gains (losses) on securities available-for-sale, net of tax Unrealized gains (losses) on cash flow hedges, net of tax Total unrealized gains (losses), net of tax Three months ended June 30, 2015 Beginning balance $ 6,939 $ (299 ) $ 6,640 Other comprehensive income (loss) before reclassifications (4,831 ) 362 (4,469 ) Amounts reclassified from accumulated other comprehensive income (3 ) (1) 68 (2) 65 Net current period other comprehensive income (loss) (4,834 ) 430 (4,404 ) Ending balance $ 2,105 $ 131 $ 2,236 Three months ended June 30, 2014 Beginning balance $ (2,415 ) $ — $ (2,415 ) Other comprehensive income before reclassifications 4,648 — 4,648 Amounts reclassified from accumulated other comprehensive income — (1) — — Net current period other comprehensive income 4,648 — 4,648 Ending balance $ 2,233 $ — $ 2,233 Six months ended June 30, 2015 Beginning balance $ 3,995 $ (145 ) $ 3,850 Other comprehensive income (loss) before reclassifications (1,956 ) 151 (1,805 ) Amounts reclassified from accumulated other comprehensive income 66 (1) 125 (2) 191 Net current period other comprehensive income (loss) (1,890 ) 276 (1,614 ) Ending balance $ 2,105 $ 131 $ 2,236 Six months ended June 30, 2014 Beginning balance $ (7,996 ) $ — $ (7,996 ) Other comprehensive income before reclassifications 8,728 — 8,728 Amounts reclassified from accumulated other comprehensive income 1,501 (1) — 1,501 Net current period other comprehensive income 10,229 — 10,229 Ending balance $ 2,233 $ — $ 2,233 (1) Amounts are included in “Net gain (loss) on sales of securities” in the Consolidated Statements of Income within total noninterest income and were net gains of $6 thousand and $ 0 for the three months ended June 30, 2015 and 2014, respectively, and net losses of $ 101 thousand and $2.3 million for the six months ended June 30, 2015 and 2014 , respectively. Income tax provision (benefit) associated with the reclassification adjustments for three months ended June 30, 2015 and 2014 was an expense of $ 3 thousand and $ 0 , respectively, and for the six months ended June 30, 2015 and 2014 was a benefit of $ 35 thousand and $809 thousand , respectively, and are included in “Income tax provision (benefit)” in the Consolidated Statements of Income. (2) Amount is included in “Other brokered funds” in the Consolidated Statements of Income within total interest expense and was $104 thousand for the three months ended June 30, 2015 , and $ 192 thousand for the six months ended June 30, 2015 . Income tax benefit associated with the reclassification adjustment for the three months ended June 30, 2015 was $36 thousand and for the six months ended June 30, 2015 was $ 67 thousand and included in “Income tax provision (benefit)” in the Consolidated Statements of Income.

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	6 Months Ended
	Jun. 30, 2015
FHC
BUSINESS COMBINATIONS
Summary of the assets and liabilities purchased in acquisition recorded at fair value	(Dollars in thousands) Consideration paid: Cash $ 13,395 Fair value of identifiable assets acquired: Cash and cash equivalents 14,205 Investment securities 34,022 Federal Home Loan Bank stock 874 Loans 162,265 Premises and equipment 2,077 Company-owned life insurance 4,719 Other real estate owned and repossessed assets 1,260 Core deposit intangible 2,410 Other assets 6,462 Total identifiable assets acquired 228,294 Fair value of liabilities assumed: Deposits 201,453 Long-term debt 13,086 Other liabilities 3,884 Total liabilities assumed 218,423 Fair value of net identifiable assets acquired 9,871 Goodwill recognized in the acquisition $ 3,524
Schedule of information regarding acquired loans accounted for under ASC 310-30 as well as excluded from ASC 310-30 accounting at acquisition date	Information regarding acquired loans accounted for under ASC 310-30 as well as those excluded from ASC 310-30 accounting at acquisition date is as follows: (Dollars in thousands) Accounted for under ASC 310-30: Contractual cash flows $ 53,807 Contractual cash flows not expected to be collected (nonaccretable difference) 8,084 Expected cash flows 45,723 Interest component of expected cash flows (accretable yield) 5,268 Fair value at acquisition $ 40,455 Excluded from ASC 310-30 accounting: Unpaid principal balance $ 124,538 Fair value discount (2,728 ) Fair value at acquisition 121,810 Total fair value at acquisition $ 162,265
Talmer West Bank
BUSINESS COMBINATIONS
Summary of the assets and liabilities purchased in acquisition recorded at fair value	The assets and liabilities associated with the acquisition of Talmer West Bank were recorded in the Consolidated Balance Sheets at estimated fair value as of the acquisition date as presented in the following table. (Dollars in thousands) Consideration paid: Cash $ 6,500 Fair value of identifiable assets acquired: Cash and cash equivalents 216,331 Investment securities 13,619 Federal Home Loan Bank stock 5,933 Loans 571,666 Premises and equipment 6,540 Loan servicing rights 767 Other real estate owned 30,878 Core deposit intangible 3,633 Other assets 62,542 Total identifiable assets acquired 911,909 Fair value of liabilities assumed: Deposits 857,769 Other liabilities 5,663 Total liabilities assumed 863,432 Fair value of net identifiable assets acquired 48,477 Bargain purchase gain resulting from acquisition $ 41,977
Schedule of information regarding acquired loans accounted for under ASC 310-30 as well as excluded from ASC 310-30 accounting at acquisition date	Information regarding acquired loans accounted for under ASC 310-30 as well as those excluded from ASC 310-30 accounting at acquisition date is as follows: (Dollars in thousands) Accounted for under ASC 310-30: Contractual cash flows $ 331,523 Contractual cash flows not expected to be collected (nonaccretable difference) 86,410 Expected cash flows 245,113 Interest component of expected cash flows (accretable yield) 32,764 Fair value at acquisition $ 212,349 Excluded from ASC 310-30 accounting: Unpaid principal balance $ 362,782 Fair value discount (3,465 ) Fair value at acquisition 359,317 Total fair value at acquisition $ 571,666

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value
Schedule of the recorded amount of assets and liabilities measured at fair value, including financial assets and liabilities for which the Company has elected the fair value option, on a recurring basis	The following tables present the recorded amount of assets and liabilities measured at fair value, including financial assets and liabilities for which the Company has elected the fair value option, on a recurring basis: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 98,283 $ — $ 98,283 $ — Obligations of state and political subdivisions: Taxable 4,361 — 4,043 318 Tax-exempt 271,754 — 271,754 — Small Business Administration (“SBA”) Pools 32,349 — 32,349 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 334,034 — 334,034 — Privately issued 26,460 — 26,460 — Privately issued commercial mortgage-backed securities 19,509 — 19,509 — Corporate debt securities 58,569 — 58,121 448 Total securities available-for-sale 845,319 — 844,553 766 Loans measured at fair value: Residential real estate 20,907 — — 20,907 Loans held for sale 117,042 — 117,042 — Loan servicing rights 58,894 — — 58,894 Derivative assets: Forward contracts related to mortgage loans to be delivered for sale 863 — 863 — Interest rate lock commitments 2,029 — 2,029 — Customer-initiated derivatives 2,011 — 2,011 — Risk management derivatives 337 — 337 — Total derivatives 5,240 — 5,240 — Total assets at fair value $ 1,047,402 $ — $ 966,835 $ 80,567 Derivative liabilities: Customer-initiated derivatives 1,870 — 1,870 — Risk management derivatives 134 — 134 — Total derivatives 2,004 — 2,004 — Total liabilities at fair value $ 2,004 $ — $ 2,004 $ — December 31, 2014 Securities available-for-sale: U.S. government sponsored agency obligations $ 98,358 $ — $ 98,358 $ — Obligations of state and political subdivisions: Taxable 397 — — 397 Tax-exempt 232,259 — 232,259 — SBA Pools 33,933 — 33,933 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 291,759 — 291,759 — Privately issued 18,800 — 18,800 — Privately issued commercial mortgage-backed securities 5,130 — 5,130 — Corporate debt securities 60,183 — 56,758 3,425 Total securities available-for-sale 740,819 — 736,997 3,822 Loans measured at fair value: Residential real estate 18,311 — — 18,311 Real estate construction 1,215 — — 1,215 Loans held for sale 93,453 — 93,453 — Loan servicing rights 70,598 — — 70,598 Derivative assets: Interest rate lock commitments 1,489 — 1,489 — Customer-initiated derivatives 1,588 — 1,588 — Total derivatives 3,077 — 3,077 — Total assets at fair value $ 927,473 $ — $ 833,527 $ 93,946 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 803 — 803 — Customer-initiated derivatives 1,477 — 1,477 — Risk management derivatives 222 — 222 — Total derivatives 2,502 — 2,502 — Total liabilities at fair value $ 2,502 $ — $ 2,502 $ —
Summary of the changes in Level 3 assets and liabilities measured at fair value on a recurring basis	The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis. Three months ended June 30, 2015 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Corporate Debt Securities Loans held for investment Loan servicing rights Balance, beginning of period $ 397 $ 430 $ 22,158 $ 54,409 Transfers from loans held for sale — — 764 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” 1 1 — — Recorded in “Net gain on sales of loans” 12 Recorded in “Mortgage banking and other loan fees” — — (347 ) 1,552 Recorded in OCI (pre-tax) — 17 — — New originations — — — 2,933 Repayments (80 ) — (1,680 ) — Balance, end of period $ 318 $ 448 $ 20,907 $ 58,894 Six months ended June 30, 2015 Securities available-for-sale (Dollars in thousands) Taxable obligations of Corporate Debt Loans held for Loan servicing Balance, beginning of period $ 397 $ 3,425 $ 19,526 $ 70,598 Transfer between levels within fair value hierarchy — (3,000 ) — — Transfers from loans held for sale — — 3,983 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” 1 2 — — Recorded in “Net gain on sales of loans” — — 139 — Recorded in “Mortgage banking and other loan fees” — — (239 ) (4,850 ) Recorded in OCI (pre-tax) — 21 — — New originations — — — 5,848 Reduction from servicing rights sold — — — (12,702 ) Repayments (80 ) — (2,502 ) — Balance, end of period $ 318 $ 448 $ 20,907 $ 58,894 Three months ended June 30, 2014 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Corporate Debt Securities Loans held for investment Loan servicing rights Balance, beginning of period $ 397 $ 420 $ 17,914 $ 77,892 Transfers from loans held for sale — — 542 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” — 1 — — Recorded in “Net gain on sales of loans” — — 15 — Recorded in “Mortgage banking and other loan fees” — — 386 (5,947 ) Recorded in OCI (pre-tax) — 12 — — New originations — — — 2,159 Repayments — — (332 ) — Balance, end of period $ 397 $ 433 $ 18,525 $ 74,104 Six months ended June 30, 2014 Securities available-for-sale (Dollars in thousands) Taxable obligations of Corporate Debt Loans held for Loan servicing Balance, beginning of period $ 396 $ 405 $ 17,708 $ 78,603 Additions due to acquisition — — — 767 Transfers from loans held for sale — — 778 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” 1 2 — — Recorded in “Net gain on sales of loans” — — 8 — Recorded in “Mortgage banking and other loan fees” — — 467 (9,014 ) Recorded in OCI (pre-tax) — 26 — — New originations — — — 3,748 Repayments — — (564 ) — Draws on previously issued lines of credits — — 128 — Balance, end of period $ 397 $ 433 $ 18,525 $ 74,104
Schedule of aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans position held for investment	The aggregate fair value, contractual balance (including accrued interest), and gain or loss position for loans held for investment measured and recorded at fair value was as follows: (Dollars in thousands) June 30, 2015 December 31, 2014 Aggregate fair value $ 20,907 $ 19,526 Contractual balance 20,581 19,100 Fair market value gain 326 426
Schedule of aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale	The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: (Dollars in thousands) June 30, 2015 December 31, 2014 Aggregate fair value $ 117,042 $ 93,453 Contractual balance 113,851 89,138 Unrealized gain 3,191 4,315
Schedule of the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis	The following table presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Impaired loans:(1) Uncovered Residential real estate $ 6,673 $ — $ — $ 6,673 Commercial real estate 3,684 — — 3,684 Commercial and industrial 370 — — 370 Real estate construction 198 — — 198 Consumer 29 — — 29 Total uncovered impaired loans 10,954 — — 10,954 Covered Residential real estate 68 — — 68 Commercial real estate 177 — — 177 Commercial and industrial 155 — — 155 Total covered impaired loans 400 — — 400 Total impaired loans 11,354 — — 11,354 Other real estate owned (uncovered)(2) 2,267 — — 2,267 Other real estate owned (covered)(3) 1,811 — — 1,811 Repossessed assets(4) 6,896 — — 6,896 Premises and equipment(5) 1,575 — — 1,575 Total $ 23,903 $ — $ — $ 23,903 December 31, 2014 Impaired loans:(1) Uncovered Residential real estate $ 2,898 $ — $ — $ 2,898 Commercial real estate 4,115 — — 4,115 Commercial and industrial 579 — — 579 Consumer 12 — — 12 Total uncovered impaired loans 7,604 — — 7,604 Covered Residential real estate 152 — — 152 Commercial and industrial 350 — — 350 Total covered impaired loans 502 — — 502 Total impaired loans 8,106 — — 8,106 Other real estate owned (uncovered) (2) 9,670 — — 9,670 Other real estate owned (covered) (3) 3,807 — — 3,807 Repossessed assets(4) 9,654 — — 9,654 Premises and equipment(5) 675 — — 675 Total $ 31,912 $ — $ — $ 31,912 (1) Specific reserves of $4.0 million and $2.9 million were provided to reduce the fair value of these loans at June 30, 2015 and December 31, 2014, respectively, based on the estimated fair value of the underlying collateral. In addition, charge-offs of $31 thousand and $1.9 million reduced the fair value of these loans for the three months ended June 30, 2015 and 2014 , respectively, and $67 thousand and $2.0 million for the six months ended June 30, 2015 and 2014, respectively. (2) The Company charged $487 thousand and $821 thousand through other noninterest expense during the three months ended June 30, 2015 and 2014 , respectively, and $1.3 million and $1.5 million during the six months ended June 30, 2015 and 2014, respectively, to reduce the fair value of these properties. (3) The Company charged $98 thousand and $537 thousand through other noninterest expense during the three months ended June 30, 2015 and 2014 , respectively, and $636 thousand and $904 thousand during the six months ended June 30, 2015 and 2014, respectively, to reduce the fair value of these properties. These expenses were partially offset by FDIC loss sharing income recorded due to the associated loss share coverage. (4) The Company charged $274 thousand and $468 thousand through other noninterest expense during the three and six months ended June 30, 2015 , respectively, to reduce the fair value of these assets. As of June 30, 2014, there were no repossessed assets deemed impaired and there were no charges taken relating to these assets during the three and six months ended June 30, 2014. A valuation allowance of $3.1 million and $460 thousand was provided to reduce the fair value of these repossessed assets at June 30, 2015 and December 31, 2014 , respectively, based on the estimated fair value as of each respective date. (5) The company charged $ 1.1 million through other noninterest expenses during both the three and six months ended June 30, 2015 to reduce the value of premises and equipment deemed impaired during the period. As of June 30, 2014 , there were no premises and equipment deemed impaired and there were no charges taken relating to these assets during the three and six months ended June 30, 2014 .
Loans held for investment
Fair Value
Schedule of total amount of gains/(losses) from changes in fair value included in earnings	The total amount of gains (losses) from changes in fair value of loans held for investment measured at fair value in the Consolidated Statements of Income were as follows: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Change in fair value: Included in “Net gain on sales of loans” $ 12 $ 15 $ 139 $ 8 Included in “Mortgage banking and other loan fees” (347 ) 386 (239 ) 467 The total amount of gains (losses) from changes in fair value of loans held for sale included in “Net gain on sales of loans” in the Consolidated Statements of Income were as follows: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Change in fair value $ 417 $ 3,458 $ (1,124 ) $ 4,834
Recurring basis
Fair Value
Schedule of the carrying amount and estimated fair values of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company's consolidated balance sheets	The following tables present the carrying amount and estimated fair values of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company’s Consolidated Balance Sheets. Estimated Fair Value (Dollars in thousands) Carrying Value Total Level 1 Level 2 Level 3 June 30, 2015 Financial assets: Cash and cash equivalents $ 410,558 $ 410,558 $ 79,357 $ 331,201 $ — Federal Home Loan Bank stock 25,418 N/A Net loans, excluding covered loans(1) 4,207,560 4,281,316 — — 4,281,316 Net covered loans(2) 264,507 349,004 — — 349,004 Accrued interest receivable 14,409 14,409 — 14,409 — FDIC indemnification asset 36,997 18,875 — — 18,875 FDIC receivable 5,543 5,543 — 5,543 — Company-owned life insurance 104,972 104,972 — 104,972 — Securities held-to-maturity 1,692 1,692 — — 1,692 Financial liabilities: Deposits: Savings and demand deposits $ 3,414,192 $ 3,414,192 $ — $ 3,414,192 $ — Time deposits(3) 1,493,881 1,493,607 — 1,493,607 — Total deposits 4,908,073 4,907,799 — 4,907,799 — FDIC clawback liability 28,588 28,588 — — 28,588 Short-term borrowings 253,945 253,945 — 253,945 — Long-term debt 414,947 409,580 — 409,580 — FDIC warrants payable 4,441 4,441 — — 4,441 Accrued interest payable 2,079 2,079 — 2,079 — Deferred compensation plan liabilities 1,475 1,475 — 1,475 — (1) Included $11.0 million of impaired loans recorded at fair value on a nonrecurring basis and $20.9 million of loans recorded at fair value on a recurring basis. (2) Included $400 thousand of impaired loans recorded at fair value on a nonrecurring basis. (3) Includes $66.8 million of other brokered funds. Estimated Fair Value (Dollars in thousands) Carrying Value Total Level 1 Level 2 Level 3 December 31, 2014 Financial assets: Cash and cash equivalents $ 253,736 $ 253,736 $ 86,185 $ 167,551 $ — Federal Home Loan Bank stock 20,212 N/A Net loans, excluding covered loans(1) 3,868,818 3,948,847 — — 3,948,847 Net covered loans(2) 325,137 420,627 — — 420,627 Accrued interest receivable 12,533 12,533 — 12,533 — FDIC indemnification asset 67,026 34,572 — — 34,572 FDIC receivable 6,062 6,062 — 6,062 — Company-owned life insurance 97,782 97,782 — 97,782 — Securities held-to-maturity 1,226 1,226 — — 1,226 Financial liabilities: Deposits: Savings and demand deposits $ 3,288,414 $ 3,288,414 $ — $ 3,288,414 $ — Time deposits(3) 1,260,449 1,260,453 — 1,260,453 — Total deposits 4,548,863 4,548,867 — 4,548,867 — FDIC clawback liability 26,905 26,905 — — 26,905 Short-term borrowings 135,743 135,743 — 135,743 — Long-term debt 353,972 348,373 — 348,373 — FDIC warrants payable 4,633 4,633 — — 4,633 Accrued interest payable 1,476 1,476 — 1,476 — Deferred compensation plan liabilities 587 587 — 587 — (1) Included $7.6 million of impaired loans recorded at fair value on a nonrecurring basis and $ 19.5 million of loans recorded at fair value on a recurring basis. (2) Included $502 thousand of impaired loans recorded at fair value on a nonrecurring basis. (3) Includes $72.3 million of other brokered funds.

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Summary of the Company's investment securities available-for-sale	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2014 Securities available-for-sale: U.S. government sponsored agency obligations $ 97,746 $ 791 $ (179 ) $ 98,358 Obligations of state and political subdivisions: Taxable 397 — — 397 Tax-exempt 229,404 3,578 (723 ) 232,259 SBA Pools 33,824 209 (100 ) 33,933 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 289,156 2,886 (283 ) 291,759 Privately issued 18,814 27 (41 ) 18,800 Privately issued commercial mortgage-backed securities 5,127 3 — 5,130 Corporate debt securities 60,206 209 (232 ) 60,183 Total securities available-for-sale $ 734,674 $ 7,703 $ (1,558 ) $ 740,819 The following summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 97,860 $ 819 $ (396 ) $ 98,283 Obligations of state and political subdivisions: Taxable 4,361 7 (7 ) 4,361 Tax-exempt 271,102 2,601 (1,949 ) 271,754 SBA Pools 31,960 389 — 32,349 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 332,457 2,766 (1,189 ) 334,034 Privately issued 26,604 1 (145 ) 26,460 Privately issued commercial mortgage-backed securities 19,547 12 (50 ) 19,509 Corporate debt securities 58,190 445 (66 ) 58,569 Total securities available-for-sale $ 842,081 $ 7,040 $ (3,802 ) $ 845,319
Held-to-maturity securities	Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Securities held-to-maturity $ 1,692 $ — $ — $ 1,692 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Securities held-to-maturity $ 1,226 $ — $ — $ 1,226
Schedule of proceeds from sales of securities and the associated gains and losses recorded in earnings	For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Proceeds $ 135 $ — $ 24,750 $ 54,211 Gross gains 6 — 9 — Gross losses — — (110 ) (2,310 )
Schedule of amortized cost and fair value of debt securities by contractual maturity	June 30, 2015 (Dollars in thousands) Amortized Cost Fair Value Securities with contractual maturities: Within one year $ 5,921 $ 5,954 After one year through five years 142,325 143,842 After five years through ten years 185,443 185,589 After ten years 508,392 509,934 Total securities available-for-sale $ 842,081 $ 845,319 Securities held-to-maturity: After one year through five years $ 1,692 $ 1,692 Total securities held-to-maturity $ 1,692 $ 1,692
Summary of the investment securities available-for-sale in an unrealized loss position	A summary of the Company’s investment securities available-for-sale in an unrealized loss position is as follows: Less than 12 Months More than 12 Months Total (Dollars in thousands) Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses June 30, 2015 U.S. government sponsored agency obligations $ 54,604 $ (396 ) $ — $ — $ 54,604 $ (396 ) Obligations of state and political subdivisions: Taxable 953 (7 ) — — 953 (7 ) Tax-exempt 137,675 (1,730 ) 8,026 (219 ) 145,701 (1,949 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 112,083 (1,164 ) 907 (25 ) 112,990 (1,189 ) Privately issued 25,984 (145 ) — — 25,984 (145 ) Privately issued commercial mortgage-backed securities 14,398 (50 ) — — 14,398 (50 ) Corporate debt securities 21,237 (64 ) 448 (2 ) 21,685 (66 ) Total securities available-for-sale $ 366,934 $ (3,556 ) $ 9,381 $ (246 ) $ 376,315 $ (3,802 ) December 31, 2014 U.S. government sponsored agency obligations $ — $ — $ 14,821 $ (179 ) $ 14,821 $ (179 ) Obligations of state and political subdivisions: Tax-exempt 31,054 (260 ) 33,650 (463 ) 64,704 (723 ) SBA Pools 1,844 (4 ) 17,682 (96 ) 19,526 (100 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 36,261 (85 ) 27,361 (198 ) 63,622 (283 ) Privately issued 7,801 (41 ) 8 — 7,809 (41 ) Corporate debt securities 22,520 (162 ) 8,912 (70 ) 31,432 (232 ) Total securities available-for-sale $ 99,480 $ (552 ) $ 102,434 $ (1,006 ) $ 201,914 $ (1,558 )

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2015
Loans
Schedule of loans	Loans at June 30, 2015 and December 31, 2014 were as follows: Covered loans Uncovered loans (Dollars in thousands) Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total covered loans Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total uncovered loans Total June 30, 2015 Residential real estate $ 75,655 $ 20,716 $ 96,371 $ 226,382 $ 1,208,296 $ 1,434,678 $ 1,531,049 Commercial real estate 124,722 19,176 143,898 184,620 1,211,163 1,395,783 1,539,681 Commercial and industrial 18,220 6,574 24,794 16,730 1,049,623 1,066,353 1,091,147 Real estate construction 6,761 665 7,426 7,298 167,894 175,192 182,618 Consumer 8,274 84 8,358 2,157 169,963 172,120 180,478 Total $ 233,632 $ 47,215 $ 280,847 $ 437,187 $ 3,806,939 $ 4,244,126 $ 4,524,973 (1) December 31, 2014 Residential real estate $ 86,515 $ 21,711 $ 108,226 $ 239,523 $ 1,186,489 $ 1,426,012 $ 1,534,238 Commercial real estate 160,886 25,776 186,662 190,148 1,120,790 1,310,938 1,497,600 Commercial and industrial 23,752 8,896 32,648 15,499 853,978 869,477 902,125 Real estate construction 8,415 974 9,389 8,309 123,377 131,686 141,075 Consumer 9,469 96 9,565 2,389 162,135 164,524 174,089 Total $ 289,037 $ 57,453 $ 346,490 $ 455,868 $ 3,446,769 $ 3,902,637 $ 4,249,127 (1) (1) Reported net of deferred fees totaling $2.7 million and $4.6 million at June 30, 2015 and December 31, 2014 , respectively.
Schedule of information as to nonperforming assets	Information as to nonperforming assets was as follows: (Dollars in thousands) June 30, December 31, Uncovered nonperforming assets Nonaccrual loans Residential real estate $ 20,133 $ 17,374 Commercial real estate 15,727 13,756 Commercial and industrial 3,119 3,550 Real estate construction 438 174 Consumer 308 257 Total nonaccrual loans 39,725 35,111 Other real estate owned and repossessed assets (1) 37,612 36,872 Total uncovered nonperforming assets 77,337 71,983 Covered nonperforming assets Nonaccrual loans Residential real estate 2,071 1,848 Commercial real estate 14,968 15,723 Commercial and industrial 2,369 3,560 Real estate construction 365 713 Consumer 20 13 Total nonaccrual loans 19,793 21,857 Other real estate owned and repossessed assets 8,261 10,719 Total covered nonperforming assets 28,054 32,576 Total nonperforming assets $ 105,391 $ 104,559 Uncovered loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 Residential real estate $ 120 $ 12 Commercial and industrial 4 — Real estate construction 5 — Consumer 211 41 Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 $ 340 $ 53 (1) Excludes closed branches and operating facilities.
Schedule of information as to impaired loans both individually and collectively evaluated for impairment	Information as to total impaired loans (both individually and collectively evaluated for impairment) is as follows: (Dollars in thousands) June 30, December 31, Uncovered Nonaccrual loans $ 39,725 $ 35,111 Performing troubled debt restructurings: Residential real estate 2,392 1,368 Commercial real estate 3,741 3,785 Commercial and industrial 2,597 840 Real estate construction 131 90 Consumer 233 234 Total uncovered performing troubled debt restructurings 9,094 6,317 Total uncovered impaired loans $ 48,819 $ 41,428 Covered Nonaccrual loans $ 19,793 $ 21,857 Performing troubled debt restructurings: Residential real estate 3,584 3,046 Commercial real estate 3,055 9,017 Commercial and industrial 569 1,137 Real estate construction 300 264 Consumer 7 — Total covered performing troubled debt restructurings 7,515 13,464 Total covered impaired loans $ 27,308 $ 35,321
Schedule of the recorded investment of loans modified in TDRs during the period by type of concession granted	The following tables present the recorded investment of loans modified in TDRs during the three and six months ended June 30, 2015 and 2014 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of modification (Dollars in thousands) Principal deferral Principal reduction (1) Interest rate Forbearance agreement Total number of loans Total recorded investment at June 30, 2015 Net charge-offs (recoveries) Provision (benefit) for loan losses (2) For the three months ended June 30, 2015 Uncovered Residential real estate $ 403 $ 114 $ 224 $ — 17 $ 741 $ — $ 162 Commercial real estate 93 — 1,304 532 9 1,929 — — Commercial and industrial 231 — 542 152 14 925 192 232 Real estate construction 44 — 72 — 2 116 — — Consumer 17 — — — 1 17 — — Total uncovered $ 788 $ 114 $ 2,142 $ 684 43 $ 3,728 $ 192 $ 394 Covered Residential real estate $ 747 $ — $ 112 $ — 6 $ 859 $ — $ 5 Commercial real estate — — 2,442 — 8 2,442 — 2 Real estate construction 46 — 76 — 2 122 30 30 Total covered $ 793 $ — $ 2,630 $ — 16 $ 3,423 $ 30 $ 37 Total loans $ 1,581 $ 114 $ 4,772 $ 684 59 $ 7,151 $ 222 $ 431 For the six months ended June 30, 2015 Uncovered Residential real estate $ 1,286 $ 114 $ 785 $ — 26 $ 2,185 $ 1 $ 192 Commercial real estate 93 — 1,402 1,639 12 3,134 37 129 Commercial and industrial 567 — 1,254 178 22 1,999 192 280 Real estate construction 44 — 72 130 3 246 — — Consumer 17 — — — 1 17 — — Total uncovered $ 2,007 $ 114 $ 3,513 $ 1,947 64 $ 7,581 $ 230 $ 601 Covered Residential real estate $ 812 $ — $ 187 $ — 9 $ 999 $ 5 $ 77 Commercial real estate — — 2,694 — 10 2,694 — 81 Commercial and industrial — — 95 — 1 95 — 92 Real estate construction 46 — 76 — 2 122 (8 ) (8 ) Consumer 15 — — — 1 15 — — Total covered $ 873 $ — $ 3,052 $ — 23 $ 3,925 $ (3 ) $ 242 Total loans $ 2,880 $ 114 $ 6,565 $ 1,947 87 $ 11,506 $ 227 $ 843 (1) Loan forgiveness related to loans modified in TDRs for both the three and six months ended June 30, 2015 totaled $187 thousand . (2) The provision for loan losses for covered loans is partially offset by the build of an associated FDIC indemnification asset on covered loans . Concession type Financial effects of modification (Dollars in thousands) Principal deferral Principal Reduction (1) Interest rate Forbearance agreement Total number of loans Total recorded investment at June 30, 2014 Net charge-offs (recoveries) Provision for loan losses (2) For the three months ended June 30, 2014 Uncovered Residential real estate $ 144 $ 159 $ — $ 147 9 $ 450 $ — $ 22 Commercial real estate — — 180 99 3 279 — — Commercial and industrial 7 — 61 — 6 68 — (3 ) Consumer — 88 — — 2 88 — — Total uncovered $ 151 $ 247 $ 241 $ 246 20 $ 885 $ — $ 19 Covered Residential real estate $ — $ 14 $ 345 $ — 9 $ 359 $ — $ 22 Commercial real estate — — 652 — 2 652 — 6 Commercial and industrial — — 177 100 5 277 — 11 Total covered $ — $ 14 $ 1,174 $ 100 16 $ 1,288 $ — $ 39 Total loans $ 151 $ 261 $ 1,415 $ 346 36 $ 2,173 $ — $ 58 For the six months ended June 30, 2014 Uncovered Residential real estate $ 144 $ 227 $ 230 $ 147 15 $ 748 $ — $ 127 Commercial real estate — — 894 1,026 8 $ 1,920 (9 ) 197 Commercial and industrial 50 — 61 117 11 $ 228 — 31 Consumer — 88 — — 2 88 — 26 Total uncovered $ 194 $ 315 $ 1,185 $ 1,290 36 $ 2,984 $ (9 ) $ 381 Covered Residential real estate $ 113 $ 14 $ 345 $ — 14 $ 472 $ 6 $ 29 Commercial real estate — — 652 446 3 $ 1,098 — 66 Commercial and industrial — — 203 100 8 303 — 14 Total covered $ 113 $ 14 $ 1,200 $ 546 25 $ 1,873 $ 6 $ 109 Total loans $ 307 $ 329 $ 2,385 $ 1,836 61 $ 4,857 $ (3 ) $ 490 (1) Loan forgiveness related to loans modified in TDRs for the three and six months ended June 30, 2014 totaled $51 thousand and $178 thousand , respectively. (2) The provision for loan losses for covered loans is partially offset by the build of an associated FDIC indemnification asset on covered loans.
Schedule of the number of loans modified in TDRs during the previous 12 months for which there was payment default during the period, including the recorded investment	The following table presents the number of loans modified in TDRs during the previous 12 months for which there was payment default during the three and six months ended June 30, 2015 and 2014 , including the recorded investment as of June 30, 2015 and 2014 . A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the three months ended June 30, 2015 For the six months ended June 30, 2015 (Dollars in thousands) Total number Total recorded Charged off following Total number Total recorded Charged off following Uncovered Residential real estate 14 $ 1,701 $ — 18 $ 1,875 $ 29 Commercial real estate 11 2,812 144 11 2,812 218 Commercial and industrial 3 30 — 3 30 — Total uncovered 28 4,543 144 32 4,717 247 Covered Residential real estate 3 111 — 3 111 — Commercial real estate 1 130 — 1 130 — Commercial and industrial 1 95 — 1 95 — Total covered 5 336 — 5 336 — Total loans 33 $ 4,879 $ 144 37 $ 5,053 $ 247 For the three months ended June 30, 2014 For the six months ended June 30, 2014 (Dollars in thousands) Total number Total recorded Charged off following Total number Total recorded Charged off following Uncovered Residential real estate 14 $ 951 $ 13 20 $ 1,245 $ 95 Commercial real estate 1 546 — 3 1,797 176 Commercial and industrial 2 135 — 2 135 — Consumer 1 — — 3 — — Total uncovered 18 1,632 13 28 3,177 271 Covered Residential real estate 5 175 — 7 219 12 Commercial real estate 2 546 — 6 669 — Commercial and industrial 2 53 — 9 188 2 Real estate construction — — — 1 346 483 Consumer 1 — — 2 — — Total covered 10 774 — 25 1,422 497 Total loans 28 $ 2,406 $ 13 53 $ 4,599 $ 768
Commercial and industrial, commercial real estate and real estate construction
Loans
Schedule of loans by credit quality	Commercial and industrial, commercial real estate and real estate construction loans by credit risk category were as follows: (Dollars in thousands) Pass Special Mention Substandard Doubtful (1) Total June 30, 2015 Uncovered loans Commercial real estate $ 1,250,671 $ 47,245 $ 97,867 $ — $ 1,395,783 Commercial and industrial 1,008,042 35,986 22,325 — 1,066,353 Real estate construction 169,484 71 5,637 — 175,192 Total $ 2,428,197 $ 83,302 $ 125,829 $ — $ 2,637,328 Covered loans Commercial real estate $ 88,649 $ 6,565 $ 48,684 $ — $ 143,898 Commercial and industrial 13,396 932 10,466 — 24,794 Real estate construction 4,144 67 3,215 — 7,426 Total $ 106,189 $ 7,564 $ 62,365 $ — $ 176,118 December 31, 2014 Uncovered loans Commercial real estate $ 1,153,132 $ 63,567 $ 94,239 $ — $ 1,310,938 Commercial and industrial 824,239 29,511 15,727 — 869,477 Real estate construction 123,822 1,981 5,883 — 131,686 Total $ 2,101,193 $ 95,059 $ 115,849 $ — $ 2,312,101 Covered loans Commercial real estate $ 102,952 $ 16,073 $ 67,637 $ — $ 186,662 Commercial and industrial 16,718 1,875 14,055 — 32,648 Real estate construction 3,817 792 4,780 — 9,389 Total $ 123,487 $ 18,740 $ 86,472 $ — $ 228,699 (1) Prior to January 1, 2015, all nonaccrual loans were included in the “Doubtful” risk category. After further review of regulatory guidance, we have reclassified nonaccrual loans with a determinable value to the “Substandard” risk category; therefore, “Substandard” now includes accrual and nonaccrual loans. This change in classification has been made retrospectively and the reclassification is presented within the December 31, 2014 disclosure.
Residential real estate and consumer loans
Loans
Schedule of loans by credit quality	The following table presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total June 30, 2015 Uncovered loans Residential real estate $ 1,414,545 $ 20,133 $ 1,434,678 Consumer 171,812 308 172,120 Total $ 1,586,357 $ 20,441 $ 1,606,798 Covered loans Residential real estate $ 94,300 $ 2,071 $ 96,371 Consumer 8,338 20 8,358 Total $ 102,638 $ 2,091 $ 104,729 December 31, 2014 Uncovered Residential real estate $ 1,408,638 $ 17,374 $ 1,426,012 Consumer 164,267 257 164,524 Total $ 1,572,905 $ 17,631 $ 1,590,536 Covered loans Residential real estate $ 106,378 $ 1,848 $ 108,226 Consumer 9,552 13 9,565 Total $ 115,930 $ 1,861 $ 117,791
Excluded from ASC 310-30 accounting
Loans
Schedule of loan delinquency	Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows: June 30, 2015 (Dollars in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and still accruing Uncovered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 3,973 $ 3,005 $ 8,739 $ 15,717 $ 1,192,579 $ 1,208,296 $ 120 Commercial real estate 3,589 1,764 10,985 16,338 1,194,825 1,211,163 — Commercial and industrial 6,184 42 2,465 8,691 1,040,932 1,049,623 4 Real estate construction 151 243 173 567 167,327 167,894 5 Consumer 1,203 517 329 2,049 167,914 169,963 211 Total $ 15,100 $ 5,571 $ 22,691 $ 43,362 $ 3,763,577 $ 3,806,939 $ 340 Covered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 537 $ 140 $ 1,307 $ 1,984 $ 18,732 $ 20,716 $ — Commercial real estate 101 — 2,350 2,451 16,725 19,176 — Commercial and industrial 29 67 2,308 2,404 4,170 6,574 — Real estate construction — — 288 288 377 665 — Consumer — — 2 2 82 84 — Total $ 667 $ 207 $ 6,255 $ 7,129 $ 40,086 $ 47,215 $ — December 31, 2014 (Dollars in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and still accruing Uncovered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 11,709 $ 2,044 $ 9,593 $ 23,346 $ 1,163,143 $ 1,186,489 $ 12 Commercial real estate 4,870 1,083 11,333 17,286 1,103,504 1,120,790 — Commercial and industrial 4,679 184 2,960 7,823 846,155 853,978 — Real estate construction 1,004 136 174 1,314 122,063 123,377 — Consumer 964 152 150 1,266 160,869 162,135 41 Total $ 23,226 $ 3,599 $ 24,210 $ 51,035 $ 3,395,734 $ 3,446,769 $ 53 Covered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 238 $ 35 $ 1,179 $ 1,452 $ 20,259 $ 21,711 $ — Commercial real estate — — 4,569 4,569 21,207 25,776 — Commercial and industrial 373 7 2,923 3,303 5,593 8,896 — Real estate construction — — 710 710 264 974 — Consumer — — 2 2 94 96 — Total $ 611 $ 42 $ 9,383 $ 10,036 $ 47,417 $ 57,453 $ —

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2015
Allowance for loan losses
Schedule of information as to impaired loans individually evaluated for impairment	Information as to impaired loans individually evaluated for impairment is as follows: (Dollars in thousands) Recorded investment with no related allowance Recorded investment with related allowance Total recorded investment Contractual principal balance Related allowance June 30, 2015 Uncovered individually evaluated impaired loans Residential real estate $ 14,124 $ 8,401 $ 22,525 $ 30,095 $ 2,280 Commercial real estate 12,684 6,784 19,468 33,628 1,449 Commercial and industrial 3,647 2,069 5,716 12,386 497 Real estate construction 333 236 569 643 66 Consumer 292 249 541 786 144 Total uncovered individually evaluated impaired loans $ 31,080 $ 17,739 $ 48,819 $ 77,538 $ 4,436 Covered individually evaluated impaired loans Residential real estate $ 2,903 $ 2,752 $ 5,655 $ 7,424 $ 407 Commercial real estate 4,594 13,429 18,023 24,656 1,950 Commercial and industrial 2,130 808 2,938 5,706 327 Real estate construction 619 46 665 989 — Consumer 26 1 27 76 — Total covered individually evaluated impaired loans $ 10,272 $ 17,036 $ 27,308 $ 38,851 $ 2,684 December 31, 2014 Uncovered individually evaluated impaired loans Residential real estate $ 14,316 $ 4,268 $ 18,584 $ 23,080 $ 1,110 Commercial real estate 7,609 5,956 13,565 17,016 1,276 Commercial and industrial 915 1,884 2,799 2,807 982 Real estate construction 174 — 174 174 — Consumer 296 176 472 610 82 Total uncovered individually evaluated impaired loans $ 23,310 $ 12,284 $ 35,594 $ 43,687 $ 3,450 Covered individually evaluated impaired loans Residential real estate $ 2,155 $ 2,583 $ 4,738 $ 6,388 $ 417 Commercial real estate 10,400 11,985 22,385 28,755 1,277 Commercial and industrial 1,545 779 2,324 2,668 109 Real estate construction 670 — 670 994 — Consumer 11 1 12 39 — Total covered individually evaluated impaired loans $ 14,781 $ 15,348 $ 30,129 $ 38,844 $ 1,803
Schedule showing the average recorded investment and interest income recognized on loans	For the three months ended For the six months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Uncovered individually evaluated impaired loans Residential real estate $ 23,128 $ 302 $ 23,277 $ 500 Commercial real estate 20,005 807 20,445 1,282 Commercial and industrial 5,942 93 6,784 282 Real estate construction 580 4 573 25 Consumer 570 10 589 20 Total uncovered individually evaluated impaired loans $ 50,225 $ 1,216 $ 51,668 $ 2,109 Covered individually evaluated impaired loans Residential real estate $ 5,775 $ 98 $ 5,803 $ 174 Commercial real estate 18,203 260 18,329 497 Commercial and industrial 3,094 89 3,333 161 Real estate construction 842 72 901 79 Consumer 27 1 28 2 Total covered individually evaluated impaired loans $ 27,941 $ 520 $ 28,394 $ 913 For the three months ended For the six months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Uncovered individually evaluated impaired loans Residential real estate $ 14,870 $ 134 $ 15,038 $ 279 Commercial real estate 5,686 38 6,280 84 Commercial and industrial 1,668 15 1,676 39 Consumer 34 1 35 2 Total uncovered individually evaluated impaired loans $ 22,258 $ 188 $ 23,029 $ 404 Covered individually evaluated impaired loans Residential real estate $ 4,364 $ 63 $ 4,378 $ 127 Commercial real estate 17,615 266 17,689 533 Commercial and industrial 2,299 21 2,399 44 Real estate construction 412 — 413 9 Consumer 21 1 22 2 Total covered individually evaluated impaired loans $ 24,711 $ 351 $ 24,901 $ 715
Uncovered
Allowance for loan losses
Schedule of changes in the allowance for loan losses and the allocation of the allowance for loans	Changes in the allowance for loan losses and the allocation of the allowance for uncovered loans were as follows: (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total For the three months ended June 30, 2015 Allowance for loan losses - uncovered: Balance at beginning of period $ 10,879 $ 11,161 $ 9,475 $ 1,685 $ 1,277 $ 34,477 Provision (benefit) for loan losses 282 154 679 (93 ) 47 1,069 Gross charge-offs (1,081 ) (2,929 ) (735 ) (272 ) (256 ) (5,273 ) Recoveries 1,008 3,796 1,326 128 35 6,293 Net (charge-offs) recoveries (73 ) 867 591 (144 ) (221 ) 1,020 Ending allowance for loan losses $ 11,088 $ 12,182 $ 10,745 $ 1,448 $ 1,103 $ 36,566 For the six months ended June 30, 2015 Allowance for loan losses - uncovered: Balance at beginning of period $ 12,193 $ 11,128 $ 7,835 $ 1,599 $ 1,064 $ 33,819 Provision (benefit) for loan losses 659 47 3,366 (129 ) 538 4,481 Gross charge-offs (3,218 ) (4,547 ) (2,002 ) (307 ) (579 ) (10,653 ) Recoveries 1,454 5,554 1,546 285 80 8,919 Net (charge-offs) recoveries (1,764 ) 1,007 (456 ) (22 ) (499 ) (1,734 ) Ending allowance for loan losses $ 11,088 $ 12,182 $ 10,745 $ 1,448 $ 1,103 $ 36,566 As of June 30, 2015 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 2,280 $ 1,449 $ 497 $ 66 $ 144 $ 4,436 Collectively evaluated for impairment 3,677 5,185 9,485 584 845 19,776 Accounted for under ASC 310-30 5,131 5,548 763 798 114 12,354 Allowance for loan losses - uncovered: $ 11,088 $ 12,182 $ 10,745 $ 1,448 $ 1,103 $ 36,566 Balance of uncovered loans: Individually evaluated for impairment $ 22,525 $ 19,468 $ 5,716 $ 569 $ 541 $ 48,819 Collectively evaluated for impairment 1,185,771 1,191,695 1,043,907 167,325 169,422 3,758,120 Accounted for under ASC 310-30 226,382 184,620 16,730 7,298 2,157 437,187 Total uncovered loans $ 1,434,678 $ 1,395,783 $ 1,066,353 $ 175,192 $ 172,120 $ 4,244,126 For the three months ended June 30, 2014 Allowance for loan losses - uncovered: Balance at beginning of period $ 9,896 $ 6,776 $ 4,757 $ 1,083 $ 259 $ 22,771 Provision (benefit) for loan losses 695 2,786 425 (618 ) (69 ) 3,219 Gross charge-offs (1,381 ) (3,586 ) (481 ) (28 ) (57 ) (5,533 ) Recoveries 540 1,870 439 961 93 3,903 Net (charge-offs) recoveries (841 ) (1,716 ) (42 ) 933 36 (1,630 ) Ending allowance for loan losses $ 9,750 $ 7,846 $ 5,140 $ 1,398 $ 226 $ 24,360 For the six months ended June 30, 2014 Allowance for loan losses - uncovered: Balance at beginning of period $ 7,708 $ 4,267 $ 3,404 $ 2,027 $ 340 $ 17,746 Provision (benefit) for loan losses 3,559 5,924 1,761 (1,483 ) (118 ) 9,643 Gross charge-offs (2,817 ) (4,831 ) (626 ) (109 ) (123 ) (8,506 ) Recoveries 1,300 2,486 601 963 127 5,477 Net (charge-offs) recoveries (1,517 ) (2,345 ) (25 ) 854 4 (3,029 ) Ending allowance for loan losses $ 9,750 $ 7,846 $ 5,140 $ 1,398 $ 226 $ 24,360 (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total As of December 31, 2014 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 1,110 $ 1,276 $ 982 $ — $ 82 $ 3,450 Collectively evaluated for impairment 4,850 4,623 5,968 649 820 16,910 Accounted for under ASC 310-30 6,233 5,229 885 950 162 13,459 Allowance for loan losses - uncovered: $ 12,193 $ 11,128 $ 7,835 $ 1,599 $ 1,064 $ 33,819 Balance of uncovered loans: Individually evaluated for impairment $ 18,584 $ 13,565 $ 2,799 $ 174 $ 472 $ 35,594 Collectively evaluated for impairment 1,167,905 1,107,225 851,179 123,203 161,663 3,411,175 Accounted for under ASC 310-30 239,523 190,148 15,499 8,309 2,389 455,868 Total uncovered loans $ 1,426,012 $ 1,310,938 $ 869,477 $ 131,686 $ 164,524 $ 3,902,637
Covered loans
Allowance for loan losses
Schedule of changes in the allowance for loan losses and the allocation of the allowance for loans	Changes in the allowance and the allocation of the allowance for covered loans were as follows: (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total For the three months ended June 30, 2015 Allowance for loan losses - covered: Balance at beginning of period $ 4,159 $ 9,904 $ 2,812 $ 1,075 $ 38 $ 17,988 Provision (benefit) for loan losses (162 ) (6,267 ) (2,083 ) 207 (77 ) (8,382 ) Gross charge-offs (152 ) (777 ) (1,274 ) (454 ) (7 ) (2,664 ) Recoveries 251 6,306 2,638 126 77 9,398 Net (charge-offs) recoveries 99 5,529 1,364 (328 ) 70 6,734 Ending allowance for loan losses $ 4,096 $ 9,166 $ 2,093 $ 954 $ 31 $ 16,340 For the six months ended June 30, 2015 Allowance for loan losses - covered: Balance at beginning of period $ 3,981 $ 13,663 $ 2,577 $ 1,086 $ 46 $ 21,353 Provision (benefit) for loan losses 151 (8,700 ) (1,558 ) 326 (20 ) (9,801 ) Gross charge-offs (476 ) (4,588 ) (2,091 ) (962 ) (165 ) (8,282 ) Recoveries 440 8,791 3,165 504 170 13,070 Net (charge-offs) recoveries (36 ) 4,203 1,074 (458 ) 5 4,788 Ending allowance for loan losses $ 4,096 $ 9,166 $ 2,093 $ 954 $ 31 $ 16,340 As of June 30, 2015 Allowance for loan losses - covered: Individually evaluated for impairment $ 407 $ 1,950 $ 327 $ — $ — $ 2,684 Collectively evaluated for impairment 222 4 29 — 1 256 Accounted for under ASC 310-30 3,467 7,212 1,737 954 30 13,400 Allowance for loan losses - covered: $ 4,096 $ 9,166 $ 2,093 $ 954 $ 31 $ 16,340 Balance of covered loans: Individually evaluated for impairment $ 5,655 $ 18,023 $ 2,938 $ 665 $ 27 $ 27,308 Collectively evaluated for impairment 15,061 1,153 3,636 — 57 19,907 Accounted for under ASC 310-30 75,655 124,722 18,220 6,761 8,274 233,632 Total covered loans $ 96,371 $ 143,898 $ 24,794 $ 7,426 $ 8,358 $ 280,847 For the three months ended June 30, 2014 Allowance for loan losses - covered: Balance at beginning of period $ 5,077 $ 24,062 $ 6,759 $ 2,003 $ 99 $ 38,000 Provision (benefit) for loan losses 91 (5,848 ) (1,411 ) (95 ) (58 ) (7,321 ) Gross charge-offs (412 ) (1,209 ) (1,500 ) (979 ) (30 ) (4,130 ) Recoveries 556 4,270 692 590 86 6,194 Net (charge-offs) recoveries 144 3,061 (808 ) (389 ) 56 2,064 Ending allowance for loan losses $ 5,312 $ 21,275 $ 4,540 $ 1,519 $ 97 $ 32,743 For the six months ended June 30, 2014 Allowance for loan losses - covered: Balance at beginning of period $ 4,696 $ 26,394 $ 7,227 $ 1,984 $ 80 $ 40,381 Provision (benefit) for loan losses 783 (7,839 ) (2,501 ) (178 ) (84 ) (9,819 ) Gross charge-offs (1,275 ) (3,195 ) (2,527 ) (1,004 ) (77 ) (8,078 ) Recoveries 1,108 5,915 2,341 717 178 10,259 Net (charge-offs) recoveries (167 ) 2,720 (186 ) (287 ) 101 2,181 Ending allowance for loan losses $ 5,312 $ 21,275 $ 4,540 $ 1,519 $ 97 $ 32,743 (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total As of December 31, 2014 Allowance for loan losses - covered: Individually evaluated for impairment $ 417 $ 1,277 $ 109 $ — $ — $ 1,803 Collectively evaluated for impairment 123 57 89 7 1 277 Accounted for under ASC 310-30 3,441 12,329 2,379 1,079 45 19,273 Allowance for loan losses - covered: $ 3,981 $ 13,663 $ 2,577 $ 1,086 $ 46 $ 21,353 Balance of covered loans: Individually evaluated for impairment $ 4,738 $ 22,385 $ 2,324 $ 670 $ 12 $ 30,129 Collectively evaluated for impairment 16,973 3,391 6,572 304 84 27,324 Accounted for under ASC 310-30 86,515 160,886 23,752 8,415 9,469 289,037 Total covered loans $ 108,226 $ 186,662 $ 32,648 $ 9,389 $ 9,565 $ 346,490

ACQUIRED LOANS AND LOSS SHARE34

ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Tables)	6 Months Ended
	Jun. 30, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract]
Schedule of changes in the carrying amount of accretable discount for purchased loans	Changes in the carrying amount of accretable discount for purchased loans accounted for under ASC 310-30 were as follows: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 278,825 $ 311,171 $ 277,058 $ 302,287 Additions due to acquisitions — — 5,268 32,764 Discount accretion (19,242 ) (24,342 ) (40,206 ) (47,007 ) Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations 21,642 24,543 51,073 40,907 Other activity, net (1) (21,161 ) (13,952 ) (33,129 ) (31,531 ) Balance at end of period $ 260,064 $ 297,420 $ 260,064 $ 297,420 (1) Primarily includes changes in the accretable discount due to loan payoffs, foreclosures and charge-offs.
Summary of composition of the recorded investment for loans	Below is the composition of the recorded investment for loans accounted for under ASC 310-30 at June 30, 2015 and December 31, 2014 . (Dollars in thousands) June 30, December 31, Contractual cash flows $ 1,163,849 $ 1,281,482 Non-accretable difference (232,966 ) (259,519 ) Accretable yield (260,064 ) (277,058 ) Loans accounted for under ASC 310-30 $ 670,819 $ 744,905
Schedule of the components and impact of the provision for loan losses-covered and the related FDIC loss sharing income	The following table details the components and impact of the provision for loan losses on covered loans and the related FDIC loss sharing income. For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Benefit for loan losses - covered: Net impairment recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) $ 1,223 $ 1,066 $ 2,938 $ 2,365 Additional benefit recorded, net of charge-offs, for covered loans (9,605 ) (8,387 ) (12,739 ) (12,184 ) Total benefit for loan losses-covered $ (8,382 ) $ (7,321 ) $ (9,801 ) $ (9,819 ) Less: FDIC loss share income: Income recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) 765 1,923 1,042 3,504 Expense recorded, to offset benefit, for covered loans (6,534 ) (5,942 ) (8,324 ) (7,459 ) Total loss sharing expense due to provision for loan losses-covered (5,769 ) (4,019 ) (7,282 ) (3,955 ) Net (increase) decrease to income before taxes: Net (income) expense recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) 458 (857 ) 1,896 (1,139 ) Net income recorded, for covered loans including those accounted for under ASC 310-20 and ASC 310-40 (3,071 ) (2,445 ) (4,415 ) (4,725 ) Net (increase) decrease to income before taxes $ (2,613 ) $ (3,302 ) $ (2,519 ) $ (5,864 ) (1) The results of re-estimations also included cash flow improvements to be recognized prospectively as an adjustment to the accretable yield on the related covered loans of $8.6 million and $8.0 million for the three months ended June 30, 2015 and 2014 , respectively, and $ 16.7 million and $ 16.4 million for the six months ended June 30, 2015 and 2014, respectively.
Summary of the activity related to the FDIC indemnification asset and the FDIC receivable	The following table summarizes the activity related to the FDIC indemnification asset and the FDIC receivable for the three and six months ended June 30, 2015 and 2014 . For further detail on impairment and provision expense related to loans accounted for under ASC Topic 310-30, refer to Note 6, “Allowance for Loan Losses.” For the three months ended June 30, 2015 For the six months ended June 30, 2015 (Dollars in thousands) FDIC Indemnification Asset FDIC Receivable FDIC Indemnification Asset FDIC Receivable Balance at beginning of period $ 50,702 $ 7,839 $ 67,026 $ 6,062 Accretion (8,548 ) — (17,798 ) — Sales and write-downs of other real estate owned (covered) (475 ) 150 (828 ) 16 Net effect of change in allowance on covered assets (1) 490 — (1,200 ) — Reimbursements requested from FDIC (reclassification to FDIC receivable) (5,172 ) 5,172 (10,203 ) 10,203 Decreases due to recoveries net of additional claimable expenses incurred (2) — (6,261 ) — (7,618 ) Claim payments received from the FDIC — (1,357 ) — (3,120 ) Balance at end of period $ 36,997 $ 5,543 $ 36,997 $ 5,543 (1) Primarily includes adjustments for fully claimed and exited loans and the results of remeasurement of expected cash flows under ASC 310-30 accounting. (2) Includes expenses associated with maintaining the underlying properties and legal fees. For the three months ended June 30, 2014 For the six months ended June 30, 2014 (Dollars in thousands) FDIC Indemnification Asset FDIC Receivable FDIC Indemnification Asset FDIC Receivable Balance at beginning of period $ 119,045 $ 8,130 $ 131,861 $ 7,783 Accretion (5,506 ) — (12,224 ) — Sales and write-downs of other real estate owned (covered) (281 ) (55 ) (753 ) (247 ) Net effect of change in allowance on covered assets (1) (6,130 ) — (8,155 ) — Reimbursements requested from FDIC (reclassification to FDIC receivable) (4,434 ) 4,434 (8,035 ) 8,035 Decreases due to recoveries net of additional claimable expenses incurred (2) — (3,433 ) — (4,319 ) Claim payments received from the FDIC — (1,878 ) — (4,054 ) Balance at end of period $ 102,694 $ 7,198 $ 102,694 $ 7,198 (1) Primarily includes adjustments for fully claimed and exited loans and the results of remeasurement of expected cash flows under ASC 310-30 accounting. (2) Includes expenses associated with maintaining the underlying properties and legal fees.

OTHER REAL ESTATE OWNED AND R35

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Tables)	6 Months Ended
	Jun. 30, 2015
Other Real Estate [Abstract]
Tabular disclosure of the changes in non-covered and covered other real estate on properties owned	Changes in other real estate owned and repossessed assets were as follows: Other real estate owned (Dollars in thousands) Uncovered Covered Total other real estate owned Repossessed assets Balance at January 1, 2015 $ 28,247 $ 10,661 $ 38,908 $ 9,835 Additions due to acquisitions 1,260 — 1,260 — Additions due to the adoption of ASU 2014-04 (1) 455 85 540 — Transfers in (2) 12,151 5,670 17,821 847 Capitalized expenditures — — — 2,681 Payments received — — — (2,854 ) Disposals (9,777 ) (7,553 ) (17,330 ) (318 ) Write-downs (1,311 ) (636 ) (1,947 ) (468 ) Change in valuation allowance — — — (2,602 ) Balance at June 30, 2015 $ 31,025 $ 8,227 $ 39,252 $ 7,121 Balance at January 1, 2014 $ 18,384 $ 11,571 $ 29,955 $ 27 Additions due to acquisitions 30,878 — 30,878 — Transfers in (2) 8,826 4,946 13,772 237 Disposals (15,241 ) (4,687 ) (19,928 ) (172 ) Write-downs (1,500 ) (904 ) (2,404 ) — Balance at June 30, 2014 $ 41,347 $ 10,926 $ 52,273 $ 92 (1) The Company adopted the provisions of FASB ASU No. 2014-04, “Reclassification of Residential Real Estate Collaterized Consumer Mortgage Loans Upon Foreclosure” (“ASU 2014-04”) utilizing the prospective transition method. (2) Includes loans transferred to other real estate owned and other repossessed assets and transfers to other real estate owned due to branch or building operation closings/consolidations.
Schedule of activity in the valuation allowance of repossessed assets	Activity in the valuation allowance for repossessed assets during the three and six months ended June 30, 2015 is summarized below. There was no valuation allowance for repossessed assets at any time during the three or six months ended June 30, 2014 . (Dollars in thousands) Valuation allowance For the three months ended June 30, 2015 Beginning balance $ 2,819 Provision for valuation allowance 243 Ending Balance $ 3,062 For the six months ended June 30, 2015 Beginning balance $ 460 Provision for valuation allowance 2,602 Ending Balance $ 3,062
Schedule of income and expenses related to other real estate owned	Income and expenses related to other real estate owned and repossessed assets were as follows: (Dollars in thousands) Uncovered Covered Total other real estate owned Repossessed assets For the three months ended June 30, 2015 Net gain on sale $ 1,315 $ 90 $ 1,405 $ — Write-downs (487 ) (98 ) (585 ) (274 ) Provision for valuation allowance (1) — — — (243 ) Net operating expenses (686 ) (27 ) (713 ) — Total $ 142 $ (35 ) $ 107 $ (517 ) For the six months ended June 30, 2015 Net gain (loss) on sale $ 3,173 $ (353 ) $ 2,820 $ (14 ) Write-downs (1,311 ) (636 ) (1,947 ) (468 ) Provision for valuation allowance (1) — — — (2,602 ) Net operating expenses (890 ) (118 ) (1,008 ) (25 ) Total $ 972 $ (1,107 ) $ (135 ) $ (3,109 ) For the three months ended June 30, 2014 Net gain on sale $ 2,998 $ 91 $ 3,089 $ — Write-downs (821 ) (537 ) (1,358 ) — Net operating expenses (919 ) (82 ) (1,001 ) (19 ) Total $ 1,258 $ (528 ) $ 730 $ (19 ) For the six months ended June 30, 2014 Net gain (loss) on sale $ 4,002 $ 231 $ 4,233 $ (4 ) Write-downs (1,500 ) (904 ) (2,404 ) — Net operating expenses (1,545 ) (74 ) (1,619 ) (49 ) Total $ 957 $ (747 ) $ 210 $ (53 ) (1) Recorded as a component of “Other expense” in the Consolidated Statements of Income

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of the Company's net carrying amount of CDIs	The table below presents the Company’s net carrying amount of CDIs. (Dollars in thousands) June 30, December 31, Gross carrying amount $ 23,068 $ 20,658 Accumulated amortization (8,937 ) (7,623 ) Net carrying amount $ 14,131 $ 13,035

LOAN SERVICING RIGHTS (Tables)

LOAN SERVICING RIGHTS (Tables)	6 Months Ended
	Jun. 30, 2015
LOAN SERVICING RIGHTS
Schedule of activity for loan servicing rights and the related fair value changes	The following table represents the activity for loan servicing rights and the related fair value changes. (Dollars in thousands) Commercial Real Estate Agricultural Mortgage Total For the three months ended June 30, 2015 Fair value, beginning of period $ 621 $ — $ 53,788 $ 54,409 Additions from loans sold with servicing retained — — 2,933 2,933 Changes in fair value due to: Reductions from loans paid off during the period (24 ) — (1,570 ) (1,594 ) Changes due to valuation inputs or assumptions (1) (17 ) — 3,163 3,146 Fair value, end of period $ 580 $ — $ 58,314 $ 58,894 For the six months ended June 30, 2015 Fair value, beginning of period $ 691 $ — $ 69,907 $ 70,598 Additions from loans sold with servicing retained — — 5,848 5,848 Reduction from loans sold and servicing rights sold (2) — — (12,702 ) (12,702 ) Changes in fair value due to: Reductions from loans paid off during the period (53 ) — (3,859 ) (3,912 ) Changes due to valuation inputs or assumptions (1) (58 ) — (880 ) (938 ) Fair value, end of period $ 580 $ — $ 58,314 $ 58,894 Principal balance of loans serviced $ 187,948 $ — $ 5,835,932 $ 6,023,880 For the three months ended June 30, 2014 Fair value, beginning of period $ 1,079 $ 894 $ 75,919 $ 77,892 Additions from loans sold with servicing retained — 57 2,102 2,159 Changes in fair value due to: Reductions from loans paid off during the period (11 ) (68 ) (1,668 ) (1,747 ) Changes due to valuation inputs or assumptions (1) (231 ) (7 ) (3,962 ) (4,200 ) Fair value, end of period $ 837 $ 876 $ 72,391 $ 74,104 For the six months ended June 30, 2014 Fair value, beginning of period $ 368 $ 962 $ 77,273 $ 78,603 Additions due to acquisition 767 — — 767 Additions from loans sold with servicing retained — 123 3,625 3,748 Changes in fair value due to: Reductions from loans paid off during the period (68 ) (137 ) (2,404 ) (2,609 ) Changes due to valuation inputs or assumptions (1) (230 ) (72 ) (6,103 ) (6,405 ) Fair value, end of period $ 837 $ 876 $ 72,391 $ 74,104 Principal balance of loans serviced $ 234,921 $ 41,518 $ 7,109,497 $ 7,385,936 (1) Represents estimated fair value changes primarily due to prepayment speeds and market-driven changes in interest rates. (2) $12.7 million of servicing rights were sold during the six months ended June 30, 2015 in connection with the sale of $1.2 billion of principal balance of loans serviced.
Schedule of assumptions included in loan servicing rights	The following table presents assumptions utilized in determining the fair value of loan servicing rights as of June 30, 2015 and December 31, 2014 . Commercial Real Estate Mortgage As of June 30, 2015 Prepayment speed 6.08 - 50.00% 3.68 - 36.97% Weighted average (“WA”) discount rate 19.48 % 9.16 % WA cost to service/per year $ 470 $ 61 WA ancillary income/per year N/A 35 WA float range 0.56 % 1.19-1.69% As of December 31, 2014 Prepayment speed 6.41-50.00% 3.63-40.07% WA discount rate 19.48 % 9.14 % WA cost to service/per year $ 470 $ 61 WA ancillary income/per year N/A 35 WA float range 0.56 % 1.16-1.74%

DERIVATIVE INSTRUMENTS AND BA38

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule reflecting the amount and fair value of risk management derivatives and mortgage banking and customer initiated derivatives	The following table presents the notional amount and fair value of the Company’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and mortgage banking activities. June 30, 2015 December 31, 2014 Fair Value Fair Value (Dollars in thousands) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Risk management purposes: Derivatives designated as hedging instruments: Interest rate swaps $ 22,000 $ 337 $ 134 $ 12,000 $ — $ 222 Total risk management purposes 22,000 337 134 12,000 — 222 Customer-initiated and mortgage banking activities: Forward contracts related to mortgage loans to be delivered for sale 196,416 863 — 114,828 — 803 Interest rate lock commitments 122,622 2,029 — 67,817 1,489 — Customer-initiated derivatives 226,551 2,011 1,870 125,356 1,588 1,477 Total customer-initiated and mortgage banking activities 545,589 4,903 1,870 308,001 3,077 2,280 Total gross derivatives $ 567,589 $ 5,240 $ 2,004 $ 320,001 $ 3,077 $ 2,502 (1) Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. (2) Derivative assets are included within “Other assets” and derivative liabilities are included within “Other liabilities” on the Consolidated Balance Sheets. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $66 thousand at June 30, 2015 and $103 thousand at December 31, 2014 .
Schedule reflecting the net gains (losses) relating to derivative instruments related to the changes in fair value	The following table presents the net gains (losses) related to derivative instruments reflecting the changes in fair value. For the three months ended For the the six months ended (Dollars in thousands) Location of Gain (Loss) 2015 2014 2015 2014 Forward contracts related to mortgage loans to be delivered for sale Net gain on sale of loans $ 2,355 $ (6,915 ) $ 1,211 $ (9,909 ) Interest rate lock commitments Net gain on sale of loans (1,620 ) 1,274 542 1,136 Customer-initiated derivatives Other noninterest income (122 ) 6 (38 ) 19 Total gain (loss) recognized in income $ 613 $ (5,635 ) $ 1,715 $ (8,754 )
Schedule of net gains (losses) recorded in other comprehensive income and consolidated statements of income related to the interest rate swaps	The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and six months ended June 30, 2015 . We had no interest rate swaps designated as cash flow hedges in the three and six months ended June 30, 2014 . (Dollars in thousands) Amount of gain (loss) recognized in other comprehensive income (Effective portion) Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion) Amount of gain (loss) recognized in other non interest income (Ineffective portion) For the three months ended June 30, 2015 Interest rate swaps designated as cash flow hedges $ 558 $ (104 ) $ — For the six months ended June 30, 2015 Interest rate swaps designated as cash flow hedges $ 233 $ (192 ) $ —
Schedule of the Company's financial instruments eligible for offset, offsetting assets	The tables below present information about the Company’s financial instruments that are eligible for offset. Gross amounts not offset in the statement of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statement of financial condition Net amounts presented in the statement of financial position Financial instruments Collateral (received)/posted Net Amount June 30, 2015 Offsetting derivative assets Derivative assets $ 2,348 $ — $ 2,348 $ (2,004 ) $ 1,570 $ 1,914 Offsetting derivative liabilities Derivative liabilities 2,004 — 2,004 (2,004 ) — — December 31, 2014 Offsetting derivative assets Derivative assets $ 1,588 $ — $ 1,588 $ (1,588 ) $ 1,689 $ 1,689 Offsetting derivative liabilities Derivative liabilities 1,699 — 1,699 (1,588 ) 111 —
Schedule of the Company's financial instruments eligible for offset, offsetting liabilities	The tables below present information about the Company’s financial instruments that are eligible for offset. Gross amounts not offset in the statement of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statement of financial condition Net amounts presented in the statement of financial position Financial instruments Collateral (received)/posted Net Amount June 30, 2015 Offsetting derivative assets Derivative assets $ 2,348 $ — $ 2,348 $ (2,004 ) $ 1,570 $ 1,914 Offsetting derivative liabilities Derivative liabilities 2,004 — 2,004 (2,004 ) — — December 31, 2014 Offsetting derivative assets Derivative assets $ 1,588 $ — $ 1,588 $ (1,588 ) $ 1,689 $ 1,689 Offsetting derivative liabilities Derivative liabilities 1,699 — 1,699 (1,588 ) 111 —

COMMITMENTS, CONTINGENCIES AN39

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Summary of the contractual amounts of the entity's exposure to off-balance sheet risk	A summary of the contractual amounts of the Company’s exposure to off-balance sheet risk is as follows: June 30, 2015 December 31, 2014 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Commitments to extend credit $ 642,049 $ 623,846 $ 1,265,895 $ 502,762 $ 463,362 $ 966,124 Standby letters of credit 62,313 3,441 65,754 69,305 4,197 73,502 Total commitments $ 704,362 $ 627,287 $ 1,331,649 $ 572,067 $ 467,559 $ 1,039,626

SHORT-TERM BORROWINGS AND LON40

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of short-term borrowings and long-term debt	The following table presents the components of the Company’s short-term borrowings and long-term debt. June 30, 2015 December 31, 2014 (Dollars in thousands) Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings: Securities sold under agreements to repurchase: 0.05% - 0.10% variable-rate notes $ 23,945 0.10 % $ 25,743 0.10 % FHLB advances: 0.24% - 0.30% fixed-rate notes 200,000 0.27 100,000 0.29 FHLB advances: 0.43% variable-rate notes — — 10,000 0.43 Holding company line of credit: floating-rate based on one-month LIBOR plus 3.00% 30,000 3.19 — — Total short-term borrowings 253,945 0.60 135,743 0.26 Long-term debt: FHLB advances: 0.26% - 7.44% fixed-rate notes due 2015 to 2027 (2) 344,001 1.40 286,804 1.57 Securities sold under agreements to repurchase: 4.11% - 4.30% fixed-rate notes due 2016 to 2037 (3) 55,623 4.19 56,444 4.19 Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 (4) 10,794 2.52 10,724 2.48 Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due September 2032 (5) 4,529 3.53 — — Total long-term debt 414,947 1.83 353,972 2.02 Total short-term borrowings and long-term debt $ 668,892 1.36 % $ 489,715 1.53 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The June 30, 2015 balance includes advances payable of $338.5 million and purchase accounting premiums of $5.5 million . The December 31, 2014 balance includes advances payable of $280.1 million and purchase accounting premiums of $6.7 million . (3) The June 30, 2015 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $5.6 million . The December 31, 2014 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $6.4 million . (4) The June 30, 2015 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.2 million . The December 31, 2014 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.3 million . (5) The June 30, 2015 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $471 thousand .
Schedule of selected financial information pertaining to the components of short-term borrowings	Selected financial information pertaining to the components of our short-term borrowings is as follows: For the three months ended June 30, For the six months ended June 30, (Dollars in thousands) 2015 2014 2015 2014 Securities sold under agreement to repurchase: Average daily balance $ 19,390 $ 86,444 $ 19,911 $ 77,054 Average interest rate during the period 0.10 % 0.13 % 0.10 % 0.11 % Maximum month-end balance $ 23,945 $ 148,826 $ 23,945 $ 148,826 FHLB advances: Average daily balance $ 33,517 $ 38,806 $ 26,022 $ 19,634 Average interest rate during the period 0.27 % 0.13 % 0.27 % 0.16 % Maximum month-end balance $ 200,000 $ 90,000 $ 200,000 $ 90,000 Federal funds purchased: Average daily balance $ — $ 1,132 $ 696 $ 2,254 Average interest rate during the period — % 0.28 % 0.31 % 0.25 % Maximum month-end balance $ — $ — $ 126,000 $ — FHLB overnight repurchase agreements: Average daily balance $ — $ — $ — $ 4,420 Average interest rate during the period — % — % — % 0.10 % Maximum month-end balance $ — $ — $ — $ — Holding company line of credit: Average daily balance $ 22,912 $ — $ 16,271 $ 11,215 Average interest rate during the period 3.18 % — % 3.18 % 3.17 % Maximum month-end balance $ 30,000 $ — $ 30,000 $ 35,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of reconciliation of expected income tax expense (benefit) at the federal statutory rate to the Company’s provision for income taxes and effective tax rate	A reconciliation of expected income tax expense (benefit) at the federal statutory rate to the Company’s provision for income taxes and effective tax rate follows. For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Amount Rate Amount Rate Amount Rate Amount Rate Tax based on federal statutory rate $ 9,004 35.0 % $ 5,726 35.0 % $ 13,860 35.0 % $ 18,526 35.0 % Effect of: Tax exempt income (644 ) (2.6 ) (475 ) (2.9 ) (1,275 ) (3.2 ) (1,202 ) (2.3 ) State taxes, net of federal benefit 194 0.8 201 1.2 460 1.2 469 0.9 Change in valuation allowance — — (9,749 ) (59.6 ) — — (10,127 ) (19.1 ) Bargain purchase gain — — — — — — (14,692 ) (27.9 ) Transaction costs 18 0.1 426 2.6 47 0.1 454 0.9 Other, net (393 ) (1.5 ) (375 ) (2.3 ) (472 ) (1.2 ) 670 1.3 Income tax expense (benefit) $ 8,179 31.8 % $ (4,246 ) (26.0 )% $ 12,620 31.9 % $ (5,902 ) (11.2 )%

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of share-based payment award, valuation assumptions	The fair value of options granted during the six months ended June 30, 2014 was determined using the following weighted-average assumptions as of the grant date. For the six months ended June 30, 2014 Fair value of options granted $ 4.77 Expected dividend yield — % Expected volatility 30.02 % Risk-free interest rate 1.98 % Expected life (in years) 6.00
Summary of activity in the Plan	Activity in the Plan during the six months ended June 30, 2015 is summarized below: Weighted Average Number of Shares (in thousands) Exercise Price per Share Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 7,958 $ 6.96 Exercised (1) (599 ) 6.77 Outstanding at June 30, 2015 7,359 6.98 6.22 71,894 Options fully vested 7,359 6.98 6.22 71,894 Exercisable at June 30, 2015 7,359 6.98 6.22 71,894 (1) Options exercised during the six months ended June 30, 2015 had a weighted average fair value of $15.74 , at respective exercise dates.
Summary of changes in the Company's nonvested shares	The following table provides information regarding nonvested restricted stock awards: Nonvested Restricted Stock Awards Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2015 378 $ 14.44 Granted 354 14.98 Vested (19 ) 14.44 Forfeited (2 ) 14.44 Nonvested at June 30, 2015 711 $ 14.71

REGULATORY CAPITAL MATTERS (Tab

REGULATORY CAPITAL MATTERS (Tables)	6 Months Ended
	Jun. 30, 2015
Banking and Thrift [Abstract]
Summary of actual and required capital amounts and ratios	The following is a summary of actual and required capital amounts and ratios in accordance with current regulatory standards: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2015 (Basel III Transitional) Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 772,889 15.0 % $ 412,749 8.0 % N/A N/A Talmer Bank and Trust 653,191 14.2 368,064 8.0 $ 460,080 10.0 % Talmer West Bank (1) 136,659 24.8 44,168 8.0 N/A N/A Common equity tier 1 capital Talmer Bancorp, Inc. (Consolidated) 717,196 13.9 232,171 4.5 N/A N/A Talmer Bank and Trust 606,576 13.2 207,036 4.5 299,052 6.5 Talmer West Bank (1) 129,474 23.5 24,844 4.5 N/A N/A Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 717,196 13.9 309,561 6.0 N/A N/A Talmer Bank and Trust 606,576 13.2 276,048 6.0 368,064 8.0 Talmer West Bank (1) 129,474 23.5 33,126 6.0 N/A N/A Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 717,196 11.5 249,398 4.0 N/A N/A Talmer Bank and Trust 606,576 11.1 217,889 4.0 272,361 5.0 Talmer West Bank (1) 129,474 16.6 31,213 4.0 N/A N/A December 31, 2014 (Basel I) Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 720,552 16.4 % $ 350,645 8.0 % N/A N/A Talmer Bank and Trust 627,851 16.3 308,374 8.0 $ 385,468 10.0 % Talmer West Bank (1) 101,926 19.6 41,628 8.0 N/A N/A Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 666,035 15.2 175,323 4.0 N/A N/A Talmer Bank and Trust 579,604 15.0 154,187 4.0 231,281 6.0 Talmer West Bank (1) 95,656 18.4 20,814 4.0 N/A N/A Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 666,035 11.6 230,546 4.0 N/A N/A Talmer Bank and Trust 579,604 11.6 200,128 4.0 250,160 5.0 Talmer West Bank (1) 95,656 12.4 30,786 4.0 N/A N/A (1) Notwithstanding its capital levels, Talmer West Bank will not be categorized as well capitalized while it is subject to the Consent Order.

PARENT COMPANY FINANCIAL STAT44

PARENT COMPANY FINANCIAL STATEMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Balance Sheets	Balance Sheets - Parent Company (Dollars in thousands) June 30, December 31, Assets Cash and cash equivalents $ 10,628 $ 9,497 Investment in banking subsidiaries 792,467 756,452 Income tax benefit 8,429 7,975 Other assets 681 655 Total assets $ 812,205 $ 774,579 Liabilities Short-term borrowings $ 30,000 $ — Long-term debt 15,322 10,724 Accrued expenses and other liabilities 477 2,248 Total liabilities 45,799 12,972 Shareholders’ equity 766,406 761,607 Total liabilities and shareholders’ equity $ 812,205 $ 774,579
Statements of Income	Statements of Income and Comprehensive Income - Parent Company For the three months ended June 30, For the six months ended June 30, (Dollars in thousands) 2015 2014 2015 2014 Income Dividend income from subsidiary $ — $ — $ 15,000 $ 25,000 Bargain purchase gain — — — 41,977 Other noninterest income 4 3 9 5 Total income 4 3 15,009 66,982 Expenses Salaries and employee benefits 1,671 2,042 2,892 5,955 Bank acquisition and due diligence fees 159 266 1,155 1,974 Professional service fees 491 492 868 1,086 Insurance expense 33 213 113 367 Marketing expense 35 26 49 191 Interest on short-term borrowings 187 — 261 151 Interest on long-term debt 182 125 344 252 Other 59 80 173 147 Total expenses 2,817 3,244 5,855 10,123 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries (2,813 ) (3,241 ) 9,154 56,859 Income tax benefit 1,082 420 1,735 2,457 Equity in (over)/under distributed earnings of subsidiaries 19,279 23,427 16,092 (483 ) Net income $ 17,548 $ 20,606 $ 26,981 $ 58,833 Total comprehensive income, net of tax $ 17,548 $ 20,606 $ 26,981 $ 58,833
Statements of Cash Flows	Statements of Cash Flows - Parent Company For the six months ended June 30, (Dollars in thousands) 2015 2014 Cash flows from operating activities Net income $ 26,981 $ 58,833 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries (16,092 ) 483 Gain on acquisition — (41,977 ) Stock-based compensation expense 371 248 (Increase) decrease in income tax benefit (71 ) 139 Decrease in other assets, net 168 629 Increase (decrease) in accrued expenses and other liabilities, net (4,194 ) 317 Net cash from operating activities 7,163 18,672 Cash flows from investing activities Cash (used in) proceeds from acquisitions (13,323 ) (6,500 ) Capital contributions to subsidiaries — (99,500 ) Refund of investment 2,225 — Net cash used in investing activities (11,098 ) (106,000 ) Cash flows from financing activities Issuance of common stock — 42,075 Restricted stock awards tax benefits 16 — Exercise of stock options, including tax benefit (143 ) (661 ) Repurchase of warrants to repurchase 2.5 million shares, at fair value (19,892 ) — Cash dividends paid on common stock (1) (1,415 ) — Draw on senior unsecured line of credit 30,000 — Repayment of senior unsecured line of credit — (35,000 ) Repayment of long-term debt (3,500 ) — Net cash from financing activities 5,066 6,414 Net increase (decrease) in cash and cash equivalents 1,131 (80,914 ) Beginning cash and cash equivalents 9,497 98,411 Ending cash and cash equivalents $ 10,628 $ 17,497 (1) $0.02 per share for the six months ended June 30, 2015 .

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Schedule of factors used in the basic and diluted earnings per share ("EPS") computation	The factors used in the earnings per share computation follow: For the three months ended For the six months ended (In thousands, except per share data) 2015 2014 2015 2014 Net income $ 17,548 $ 20,606 $ 26,981 $ 58,833 Net income allocated to participating securities 174 26 211 37 Net income allocated to common shareholders (1) $ 17,374 $ 20,580 $ 26,770 $ 58,796 Weighted average common shares - issued 71,006 70,107 70,814 69,115 Average unvested restricted share awards (705 ) (86 ) (555 ) (44 ) Weighted average common shares outstanding - basic 70,301 70,021 70,259 69,071 Effect of dilutive securities - Employee and director stock options 4,339 4,112 4,174 3,991 Warrants 260 1,526 613 1,469 Weighted average common shares outstanding - diluted 74,900 75,659 75,046 74,531 EPS available to common shareholders Basic $ 0.25 $ 0.29 $ 0.38 $ 0.85 Diluted $ 0.23 $ 0.27 $ 0.36 $ 0.79 (1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options and warrants to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share.
Schedule of average outstanding options and warrants	The following average shares related to outstanding options and warrants to purchase shares of common stock were not included in the computation of diluted net income available to common shareholders because they were antidilutive. There were no outstanding antidilutive warrants or options during the three and six months ended June 30, 2015 and no outstanding antidilutive warrants or options for the three and six months ended June 30, 2014 . (Shares in thousands) For the three months ended For the six months ended Average outstanding options 8 4 Outstanding exercise prices: Low end $ 14.44 $ 14.44 High end $ 14.44 $ 14.44

ACCUMULATED OTHER COMPREHENSI46

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of changes in accumulated other comprehensive income (loss) by component	Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (Dollars in thousands) Unrealized gains (losses) on securities available-for-sale, net of tax Unrealized gains (losses) on cash flow hedges, net of tax Total unrealized gains (losses), net of tax Three months ended June 30, 2015 Beginning balance $ 6,939 $ (299 ) $ 6,640 Other comprehensive income (loss) before reclassifications (4,831 ) 362 (4,469 ) Amounts reclassified from accumulated other comprehensive income (3 ) (1) 68 (2) 65 Net current period other comprehensive income (loss) (4,834 ) 430 (4,404 ) Ending balance $ 2,105 $ 131 $ 2,236 Three months ended June 30, 2014 Beginning balance $ (2,415 ) $ — $ (2,415 ) Other comprehensive income before reclassifications 4,648 — 4,648 Amounts reclassified from accumulated other comprehensive income — (1) — — Net current period other comprehensive income 4,648 — 4,648 Ending balance $ 2,233 $ — $ 2,233 Six months ended June 30, 2015 Beginning balance $ 3,995 $ (145 ) $ 3,850 Other comprehensive income (loss) before reclassifications (1,956 ) 151 (1,805 ) Amounts reclassified from accumulated other comprehensive income 66 (1) 125 (2) 191 Net current period other comprehensive income (loss) (1,890 ) 276 (1,614 ) Ending balance $ 2,105 $ 131 $ 2,236 Six months ended June 30, 2014 Beginning balance $ (7,996 ) $ — $ (7,996 ) Other comprehensive income before reclassifications 8,728 — 8,728 Amounts reclassified from accumulated other comprehensive income 1,501 (1) — 1,501 Net current period other comprehensive income 10,229 — 10,229 Ending balance $ 2,233 $ — $ 2,233 (1) Amounts are included in “Net gain (loss) on sales of securities” in the Consolidated Statements of Income within total noninterest income and were net gains of $6 thousand and $ 0 for the three months ended June 30, 2015 and 2014, respectively, and net losses of $ 101 thousand and $2.3 million for the six months ended June 30, 2015 and 2014 , respectively. Income tax provision (benefit) associated with the reclassification adjustments for three months ended June 30, 2015 and 2014 was an expense of $ 3 thousand and $ 0 , respectively, and for the six months ended June 30, 2015 and 2014 was a benefit of $ 35 thousand and $809 thousand , respectively, and are included in “Income tax provision (benefit)” in the Consolidated Statements of Income. (2) Amount is included in “Other brokered funds” in the Consolidated Statements of Income within total interest expense and was $104 thousand for the three months ended June 30, 2015 , and $ 192 thousand for the six months ended June 30, 2015 . Income tax benefit associated with the reclassification adjustment for the three months ended June 30, 2015 was $36 thousand and for the six months ended June 30, 2015 was $ 67 thousand and included in “Income tax provision (benefit)” in the Consolidated Statements of Income.

BASIS OF PRESENTATION AND REC47

BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions	Feb. 17, 2015	Dec. 27, 2012	Feb. 21, 2012	Apr. 30, 2010
Stock warrants issued in relation to April 2010 capital raise from private equity investors
Warrants issued (in shares)				1,623,162
Stock warrants issued in relation to February 2012 capital raise from private equity investors
Warrants issued (in shares)			109,122
Stock warrants issued in relation to December 2012 capital raise from private equity investors
Warrants issued (in shares)		797,132
Warrants repurchase
Number of warrants repurchased	2,529,416
Aggregate purchase price of warrants repurchased	$ 19.9

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) $ in Thousands	Feb. 06, 2015USD ($)	Jan. 01, 2014USD ($)location	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Fair value of liabilities assumed:
Goodwill			$ 3,524			$ 3,524	$ 3,524		$ 0
Bargain purchase gain resulting from acquisition			0	$ 0			0	$ 41,977
Accounted for under ASC 310-30
Information regarding acquired loans
Contractual cash flows not expected to be collected (nonaccretable difference)			232,966			232,966	232,966		259,519
Expected cash flows			1,163,849			1,163,849	1,163,849		1,281,482
Interest component of expected cash flows (accretable yield)			260,064			260,064	$ 260,064		$ 277,058
Core deposit
Changes in initial fair value estimates
Estimated life of asset							7 years 1 month 6 days
Financial Commerce Corporation's wholly-owned subsidiary banks and Capital Bancorp Ltd.
BUSINESS COMBINATIONS
Cash consideration		$ 4,000
Consideration paid:
Cash		4,000
Changes in initial fair value estimates
Payment to fund escrow account		$ 2,500
Percentage of capital stock purchased		100.00%
FHC
BUSINESS COMBINATIONS
Cash consideration	$ 13,395
Subordinated notes assumed, retired immediately	3,500
Interest assumed from subordinated notes and retired	1,400
Interest assumed from Trust Preferred Securities and retired	876
Acquisition related expenses			144				$ 1,200
Deferred tax assets, valuation allowance	4,800
Net deferred tax assets at acquisition	4,800
Consideration paid:
Cash	13,395
Fair value of identifiable assets acquired:
Cash and cash equivalents	14,205
Investment securities	34,022
Federal home loan bank stock	874
Loans	162,265
Premises and equipment	2,077
Company-owned life insurance	4,719
Other real estate owned and repossessed assets	1,260
Core deposit intangible	2,410
Other assets	6,462
Total identifiable assets acquired	228,294
Fair value of liabilities assumed:
Deposits	201,453
Long-term debt	13,086
Other liabilities	3,884
Total liabilities assumed	218,423
Fair value of net identifiable assets acquired	9,871
Goodwill	3,524		3,500			3,500	3,500
Changes in initial fair value estimates
Increase in fair value of deferred tax assets						331
Decrease in fair value of loans						686
Increase in fair value of long-term debt						243
Net increase to the recognition of goodwill						$ 598
Information regarding acquired loans
Fair value at acquisition	162,265
FHC | Maximum
BUSINESS COMBINATIONS
Net operating loss and tax credit carry forwards that can be used annually	366
FHC | Federal
BUSINESS COMBINATIONS
Net operating loss carryforwards	1,700
Alternative minimum tax credits	303
Valuation allowance	0
FHC | Accounted for under ASC 310-30
Information regarding acquired loans
Contractual cash flows	53,807
Contractual cash flows not expected to be collected (nonaccretable difference)	8,084
Expected cash flows	45,723
Interest component of expected cash flows (accretable yield)	5,268
Fair value at acquisition	40,455
FHC | Excluded from ASC 310-30 accounting
Information regarding acquired loans
Unpaid principal balance	124,538
Fair value discount	(2,728)
Fair value at acquisition	$ 121,810
Talmer West Bank
BUSINESS COMBINATIONS
Cash consideration		$ 6,500
Consideration paid:
Cash		6,500
Fair value of identifiable assets acquired:
Cash and cash equivalents		216,331
Investment securities		13,619
Federal home loan bank stock		5,933
Loans		571,666
Premises and equipment		6,540
Loan servicing rights		767
Other real estate owned and repossessed assets		30,878
Other assets		62,542
Total identifiable assets acquired		911,909
Fair value of liabilities assumed:
Deposits		857,769
Other liabilities		5,663
Total liabilities assumed		863,432
Fair value of net identifiable assets acquired		48,477
Bargain purchase gain resulting from acquisition		$ 41,977
Changes in initial fair value estimates
Additional capital contributed in order to recapitalize					$ 99,500
Acquisition related expenses			$ 260	$ 191			$ 638	$ 1,800
Number of branches acquired that are within the entity's target market areas | location		12
Percentage of branches acquired that are within the entity's target market areas		70.00%
Information regarding acquired loans
Fair value at acquisition		$ 571,666
Talmer West Bank | Senior unsecured line of credit
Changes in initial fair value estimates
Amount borrowed					35,000
Amount of net proceeds from the initial public offering used for repayment of debt					$ 35,000
Talmer West Bank | Accounted for under ASC 310-30
Information regarding acquired loans
Contractual cash flows		331,523
Contractual cash flows not expected to be collected (nonaccretable difference)		86,410
Expected cash flows		245,113
Interest component of expected cash flows (accretable yield)		32,764
Fair value at acquisition		212,349
Talmer West Bank | Excluded from ASC 310-30 accounting
Information regarding acquired loans
Unpaid principal balance		362,782
Fair value discount		(3,465)
Fair value at acquisition		359,317
Talmer West Bank | Core deposit
Fair value of identifiable assets acquired:
Core deposit intangible		$ 3,633
First Place Bank | Core deposit
Changes in initial fair value estimates
Estimated life of asset							10 years

FAIR VALUE (Details)

FAIR VALUE (Details)	6 Months Ended
	Jun. 30, 2015
General disclosure on fair value
Percentage of available for sale securities that are categorized as Level 3	1.00%
Minimum
General disclosure on fair value
Adjustments to loan values during the appraisal process (as a percent)	0.00%
Adjustments to other real estate owned values during the appraisal process (as a percent)	0.00%
Maximum
General disclosure on fair value
Adjustments to loan values during the appraisal process (as a percent)	40.00%
Adjustments to other real estate owned values during the appraisal process (as a percent)	40.00%

FAIR VALUE (Details 2)

FAIR VALUE (Details 2)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Period of expected receipt of payment for FDIC receivable	90 days

FAIR VALUE (Details 3)

FAIR VALUE (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Fair Value
Securities available-for-sale	$ 845,319		$ 740,819
Loans held for sale	117,042		93,453
Loan servicing rights	58,894	$ 54,409	70,598	$ 74,104	$ 77,892	$ 78,603
U.S. government sponsored agency obligations
Fair Value
Securities available-for-sale	98,283		98,358
Taxable
Fair Value
Securities available-for-sale	4,361		397
Tax exempt
Fair Value
Securities available-for-sale	271,754		232,259
SBA Pools
Fair Value
Securities available-for-sale	32,349		33,933
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Fair Value
Securities available-for-sale	334,034		291,759
Privately issued
Fair Value
Securities available-for-sale	26,460		18,800
Privately issued commercial mortgage-backed securities
Fair Value
Securities available-for-sale	19,509		5,130
Corporate debt securities
Fair Value
Securities available-for-sale	58,569		60,183
Recurring basis | Tax exempt
Fair Value
Securities available-for-sale			0
Recurring basis | Level 1
Fair Value
Securities available-for-sale	0		0
Loans held for sale	0		0
Loan servicing rights	0		0
Derivative assets	0		0
Total assets at fair value	0		0
Derivative liabilities	0		0
Total liabilities at fair value	0		0
Recurring basis | Level 1 | Forward contracts related to mortgage loans to be delivered for sale
Fair Value
Derivative assets	0
Derivative liabilities			0
Recurring basis | Level 1 | Interest rate lock commitments
Fair Value
Derivative assets	0		0
Recurring basis | Level 1 | Customer-initiated derivatives
Fair Value
Derivative assets	0		0
Derivative liabilities	0		0
Recurring basis | Level 1 | Risk management derivatives
Fair Value
Derivative assets	0
Derivative liabilities	0		0
Recurring basis | Level 1 | Residential real estate
Fair Value
Loans held for investment, recorded at fair value	0		0
Recurring basis | Level 1 | Real estate construction
Fair Value
Loans held for investment, recorded at fair value			0
Recurring basis | Level 1 | U.S. government sponsored agency obligations
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 1 | Taxable
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 1 | Tax exempt
Fair Value
Securities available-for-sale	0
Recurring basis | Level 1 | SBA Pools
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 1 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 1 | Privately issued
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 1 | Privately issued commercial mortgage-backed securities
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 1 | Corporate debt securities
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 2
Fair Value
Securities available-for-sale	844,553		736,997
Loans held for sale	117,042		93,453
Loan servicing rights	0		0
Derivative assets	5,240		3,077
Total assets at fair value	966,835		833,527
Derivative liabilities	2,004		2,502
Total liabilities at fair value	2,004		2,502
Recurring basis | Level 2 | Forward contracts related to mortgage loans to be delivered for sale
Fair Value
Derivative assets	863
Derivative liabilities			803
Recurring basis | Level 2 | Interest rate lock commitments
Fair Value
Derivative assets	2,029		1,489
Recurring basis | Level 2 | Customer-initiated derivatives
Fair Value
Derivative assets	2,011		1,588
Derivative liabilities	1,870		1,477
Recurring basis | Level 2 | Risk management derivatives
Fair Value
Derivative assets	337
Derivative liabilities	134		222
Recurring basis | Level 2 | Residential real estate
Fair Value
Loans held for investment, recorded at fair value	0		0
Recurring basis | Level 2 | Real estate construction
Fair Value
Loans held for investment, recorded at fair value			0
Recurring basis | Level 2 | U.S. government sponsored agency obligations
Fair Value
Securities available-for-sale	98,283		98,358
Recurring basis | Level 2 | Taxable
Fair Value
Securities available-for-sale	4,043		0
Recurring basis | Level 2 | Tax exempt
Fair Value
Securities available-for-sale	271,754		232,259
Recurring basis | Level 2 | SBA Pools
Fair Value
Securities available-for-sale	32,349		33,933
Recurring basis | Level 2 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Fair Value
Securities available-for-sale	334,034		291,759
Recurring basis | Level 2 | Privately issued
Fair Value
Securities available-for-sale	26,460		18,800
Recurring basis | Level 2 | Privately issued commercial mortgage-backed securities
Fair Value
Securities available-for-sale	19,509		5,130
Recurring basis | Level 2 | Corporate debt securities
Fair Value
Securities available-for-sale	58,121		56,758
Recurring basis | Level 3
Fair Value
Securities available-for-sale	766		3,822
Loans held for sale	0		0
Loan servicing rights	58,894		70,598
Derivative assets	0		0
Total assets at fair value	80,567		93,946
Derivative liabilities	0		0
Total liabilities at fair value	0		0
Recurring basis | Level 3 | Forward contracts related to mortgage loans to be delivered for sale
Fair Value
Derivative assets	0
Derivative liabilities			0
Recurring basis | Level 3 | Interest rate lock commitments
Fair Value
Derivative assets	0		0
Recurring basis | Level 3 | Customer-initiated derivatives
Fair Value
Derivative assets	0		0
Derivative liabilities	0		0
Recurring basis | Level 3 | Risk management derivatives
Fair Value
Derivative assets	0
Derivative liabilities	0		0
Recurring basis | Level 3 | Residential real estate
Fair Value
Loans held for investment, recorded at fair value	20,907		18,311
Recurring basis | Level 3 | Real estate construction
Fair Value
Loans held for investment, recorded at fair value			1,215
Recurring basis | Level 3 | U.S. government sponsored agency obligations
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 3 | Taxable
Fair Value
Securities available-for-sale	318		397
Recurring basis | Level 3 | Tax exempt
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 3 | SBA Pools
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 3 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 3 | Privately issued
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 3 | Privately issued commercial mortgage-backed securities
Fair Value
Securities available-for-sale	0		0
Recurring basis | Level 3 | Corporate debt securities
Fair Value
Securities available-for-sale	448		3,425
Recurring basis | Total Fair Value
Fair Value
Securities available-for-sale	845,319		740,819
Loans held for sale	117,042		93,453
Loan servicing rights	58,894		70,598
Derivative assets	5,240		3,077
Total assets at fair value	1,047,402		927,473
Derivative liabilities	2,004		2,502
Total liabilities at fair value	2,004		2,502
Recurring basis | Total Fair Value | Forward contracts related to mortgage loans to be delivered for sale
Fair Value
Derivative assets	863
Derivative liabilities			803
Recurring basis | Total Fair Value | Interest rate lock commitments
Fair Value
Derivative assets	2,029		1,489
Recurring basis | Total Fair Value | Customer-initiated derivatives
Fair Value
Derivative assets	2,011		1,588
Derivative liabilities	1,870		1,477
Recurring basis | Total Fair Value | Risk management derivatives
Fair Value
Derivative assets	337
Derivative liabilities	134		222
Recurring basis | Total Fair Value | Residential real estate
Fair Value
Loans held for investment, recorded at fair value	20,907		18,311
Recurring basis | Total Fair Value | Real estate construction
Fair Value
Loans held for investment, recorded at fair value			1,215
Recurring basis | Total Fair Value | U.S. government sponsored agency obligations
Fair Value
Securities available-for-sale	98,283		98,358
Recurring basis | Total Fair Value | Taxable
Fair Value
Securities available-for-sale	4,361		397
Recurring basis | Total Fair Value | Tax exempt
Fair Value
Securities available-for-sale	271,754		232,259
Recurring basis | Total Fair Value | SBA Pools
Fair Value
Securities available-for-sale	32,349		33,933
Recurring basis | Total Fair Value | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Fair Value
Securities available-for-sale	334,034		291,759
Recurring basis | Total Fair Value | Privately issued
Fair Value
Securities available-for-sale	26,460		18,800
Recurring basis | Total Fair Value | Privately issued commercial mortgage-backed securities
Fair Value
Securities available-for-sale	19,509		5,130
Recurring basis | Total Fair Value | Corporate debt securities
Fair Value
Securities available-for-sale	$ 58,569		$ 60,183

FAIR VALUE (Details 4)

FAIR VALUE (Details 4) - Recurring basis - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Loans held for investment
Changes in Level 3 assets during period
Balance, beginning of period	$ 22,158	$ 17,914	$ 19,526	$ 17,708
Transfer between levels within fair value hierarchy			0
Additions due to acquisition				0
Transfers from loans held for sale	764	542	3,983	778
Recorded in OCI (pre-tax)	0	0	0	0
New originations	0	0	0	0
Reduction from servicing rights sold			0
Repayments	(1,680)	(332)	(2,502)	(564)
Draws on previously issued lines of credits				128
Balance, end of period	20,907	18,525	20,907	18,525
Loans held for investment | Interest on investments
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	0	0	0	0
Loans held for investment | Net gain on sales of loans
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	12	15	139	8
Loans held for investment | Mortgage banking and other loan fees
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	(347)	386	(239)	467
Loan servicing rights
Changes in Level 3 assets during period
Balance, beginning of period	54,409	77,892	70,598	78,603
Transfer between levels within fair value hierarchy			0
Additions due to acquisition				767
Transfers from loans held for sale	0	0	0	0
Recorded in OCI (pre-tax)	0	0	0	0
New originations	2,933	2,159	5,848	3,748
Reduction from servicing rights sold			(12,702)
Repayments	0	0	0	0
Draws on previously issued lines of credits				0
Balance, end of period	58,894	74,104	58,894	74,104
Loan servicing rights | Interest on investments
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	0	0	0	0
Loan servicing rights | Net gain on sales of loans
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)		0	0	0
Loan servicing rights | Mortgage banking and other loan fees
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	1,552	(5,947)	(4,850)	(9,014)
Taxable
Changes in Level 3 assets during period
Balance, beginning of period	397	397	397	396
Transfer between levels within fair value hierarchy			0
Additions due to acquisition				0
Transfers from loans held for sale	0	0	0	0
Recorded in OCI (pre-tax)	0	0	0	0
New originations	0	0	0	0
Reduction from servicing rights sold			0
Repayments	(80)	0	(80)	0
Draws on previously issued lines of credits				0
Balance, end of period	318	397	318	397
Taxable | Interest on investments
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	1	0	1	1
Taxable | Net gain on sales of loans
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)		0	0	0
Taxable | Mortgage banking and other loan fees
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	0	0	0	0
Corporate debt securities
Changes in Level 3 assets during period
Balance, beginning of period	430	420	3,425	405
Transfer between levels within fair value hierarchy			(3,000)
Additions due to acquisition				0
Transfers from loans held for sale	0	0	0	0
Recorded in OCI (pre-tax)	17	12	21	26
New originations	0	0	0	0
Reduction from servicing rights sold			0
Repayments	0	0	0	0
Draws on previously issued lines of credits				0
Balance, end of period	448	433	448	433
Corporate debt securities | Interest on investments
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	1	1	2	2
Corporate debt securities | Net gain on sales of loans
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)		0	0	0
Corporate debt securities | Mortgage banking and other loan fees
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	$ 0	$ 0	$ 0	$ 0

FAIR VALUE (Details 5)

FAIR VALUE (Details 5) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Loans held for investment measured and recorded at fair value
Aggregate fair value	$ 20,907,000		$ 20,907,000		$ 19,526,000
Contractual balance	20,581,000		20,581,000		19,100,000
Fair market value gain			326,000		426,000
Gains (losses) from changes in fair value included in earnings			0
Aggregate fair value of loans held for investment that are 90 days or more past due	0		0		155,000
Contractual principal balance of loans held for investment that are 90 days or more past due					191,000
Nonaccrual status of loans that were 90 days or more past due	150,000		150,000		$ 155,000
Interest income earned on loans transferred from loans held for sale to loans held for investment	$ 208,000	$ 168,000	$ 413,000	$ 259,000

FAIR VALUE (Details 6)

FAIR VALUE (Details 6) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Gains/(losses) from changes in fair value included in earnings			$ 0
Loans held for sale
Gains/(losses) from changes in fair value included in earnings	$ 417,000	$ 3,458,000	(1,124,000)	$ 4,834,000
Net gain on sales of loans | Loans held for investment
Gains/(losses) from changes in fair value included in earnings	12,000	15,000	139,000	8,000
Mortgage banking and other loan fees | Loans held for investment
Gains/(losses) from changes in fair value included in earnings	$ (347,000)	$ 386,000	$ (239,000)	$ 467,000

FAIR VALUE (Details 7)

FAIR VALUE (Details 7) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Other information with respect to fair value
Loans held for sale that are 90 days past due or on nonaccrual	$ 0	$ 0
Aggregate fair value	117,042,000	93,453,000
Contractual balance	113,851,000	89,138,000
Unrealized gain	$ 3,191,000	$ 4,315,000

FAIR VALUE (Details 8)

FAIR VALUE (Details 8) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Other real estate owned
Total OREO	$ 39,252	$ 52,273	$ 39,252	$ 52,273	$ 38,908	$ 29,955
Non-recurring basis
Impaired loans
Specific reserves for impaired loans, nonrecurring	4,000		4,000		2,900
Charge-offs for impaired loans, nonrecurring	31	1,900	67	2,000
Amount charged through other non-interest expense to reduce the fair value of other real estate	274		468
Valuation allowance to reduce the fair value of repossessed assets			3,100		460
Amount charged through other noninterest expenses on premises and equipment	1,100	0	1,100	0
Non-recurring basis | Level 1
Fair Value
Impaired loans	0		0		0
Other real estate owned
Repossessed assets	0		0		0
Premises and equipment:	0		0		0
Total assets at fair value	0		0		0
Non-recurring basis | Level 2
Fair Value
Impaired loans	0		0		0
Other real estate owned
Repossessed assets	0		0		0
Premises and equipment:	0		0		0
Total assets at fair value	0		0		0
Non-recurring basis | Level 3
Fair Value
Impaired loans	11,354		11,354		8,106
Other real estate owned
Repossessed assets	6,896		6,896		9,654
Premises and equipment:	1,575		1,575		675
Total assets at fair value	23,903		23,903		31,912
Non-recurring basis | Uncovered
Impaired loans
Amount charged through other non-interest expense to reduce the fair value of other real estate	487	821	1,300	1,500
Non-recurring basis | Uncovered | Level 1
Fair Value
Impaired loans	0		0		0
Other real estate owned
Total OREO	0		0		0
Non-recurring basis | Uncovered | Level 1 | Residential real estate
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Uncovered | Level 1 | Commercial real estate
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Uncovered | Level 1 | Commercial and industrial
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Uncovered | Level 1 | Real estate construction
Fair Value
Impaired loans	0		0
Non-recurring basis | Uncovered | Level 1 | Consumer
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Uncovered | Level 2
Fair Value
Impaired loans	0		0		0
Other real estate owned
Total OREO	0		0		0
Non-recurring basis | Uncovered | Level 2 | Residential real estate
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Uncovered | Level 2 | Commercial real estate
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Uncovered | Level 2 | Commercial and industrial
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Uncovered | Level 2 | Real estate construction
Fair Value
Impaired loans	0		0
Non-recurring basis | Uncovered | Level 2 | Consumer
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Uncovered | Level 3
Fair Value
Impaired loans	10,954		10,954		7,604
Other real estate owned
Total OREO	2,267		2,267		9,670
Non-recurring basis | Uncovered | Level 3 | Residential real estate
Fair Value
Impaired loans	6,673		6,673		2,898
Non-recurring basis | Uncovered | Level 3 | Commercial real estate
Fair Value
Impaired loans	3,684		3,684		4,115
Non-recurring basis | Uncovered | Level 3 | Commercial and industrial
Fair Value
Impaired loans	370		370		579
Non-recurring basis | Uncovered | Level 3 | Real estate construction
Fair Value
Impaired loans	198		198
Non-recurring basis | Uncovered | Level 3 | Consumer
Fair Value
Impaired loans	29		29		12
Non-recurring basis | Covered
Impaired loans
Valuation allowance to reduce the fair value of repossessed assets	98	$ 537	636	$ 904
Non-recurring basis | Covered | Level 1
Other real estate owned
Total OREO	0		0		0
Non-recurring basis | Covered | Level 1 | Residential real estate
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Covered | Level 1 | Commercial real estate
Fair Value
Impaired loans	0		0
Non-recurring basis | Covered | Level 1 | Commercial and industrial
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Covered | Level 2
Other real estate owned
Total OREO	0		0		0
Non-recurring basis | Covered | Level 2 | Residential real estate
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Covered | Level 2 | Commercial real estate
Fair Value
Impaired loans	0		0
Non-recurring basis | Covered | Level 2 | Commercial and industrial
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Covered | Level 3
Other real estate owned
Total OREO	1,811		1,811		3,807
Non-recurring basis | Covered | Level 3 | Residential real estate
Fair Value
Impaired loans	68		68		152
Non-recurring basis | Covered | Level 3 | Commercial real estate
Fair Value
Impaired loans	177		177
Non-recurring basis | Covered | Level 3 | Commercial and industrial
Fair Value
Impaired loans	155		155		350
Non-recurring basis | Total covered | Level 1
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Total covered | Level 2
Fair Value
Impaired loans	0		0		0
Non-recurring basis | Total covered | Level 3
Fair Value
Impaired loans	400		400		502
Total Fair Value | Non-recurring basis
Fair Value
Impaired loans	11,354		11,354		8,106
Other real estate owned
Repossessed assets	6,896		6,896		9,654
Premises and equipment:	1,575		1,575		675
Total assets at fair value	23,903		23,903		31,912
Total Fair Value | Non-recurring basis | Uncovered
Fair Value
Impaired loans	10,954		10,954		7,604
Other real estate owned
Total OREO	2,267		2,267		9,670
Total Fair Value | Non-recurring basis | Uncovered | Residential real estate
Fair Value
Impaired loans	6,673		6,673		2,898
Total Fair Value | Non-recurring basis | Uncovered | Commercial real estate
Fair Value
Impaired loans	3,684		3,684		4,115
Total Fair Value | Non-recurring basis | Uncovered | Commercial and industrial
Fair Value
Impaired loans	370		370		579
Total Fair Value | Non-recurring basis | Uncovered | Real estate construction
Fair Value
Impaired loans	198		198
Total Fair Value | Non-recurring basis | Uncovered | Consumer
Fair Value
Impaired loans	29		29		12
Total Fair Value | Non-recurring basis | Covered
Other real estate owned
Total OREO	1,811		1,811		3,807
Total Fair Value | Non-recurring basis | Covered | Residential real estate
Fair Value
Impaired loans	68		68		152
Total Fair Value | Non-recurring basis | Covered | Commercial real estate
Fair Value
Impaired loans	177		177
Total Fair Value | Non-recurring basis | Covered | Commercial and industrial
Fair Value
Impaired loans	155		155		350
Total Fair Value | Non-recurring basis | Total covered
Fair Value
Impaired loans	$ 400		$ 400		$ 502

FAIR VALUE (Details 9)

FAIR VALUE (Details 9) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Financial assets:
Net loans, excluding covered loans	$ 4,207,560		$ 3,868,818
Net covered loans	264,507		325,137
FDIC indemnification asset	36,997	$ 50,702	67,026	$ 102,694	$ 119,045	$ 131,861
FDIC receivable	5,543	$ 7,839	6,062	$ 7,198	$ 8,130	$ 7,783
Company-owned life insurance	104,972		97,782
Security held-to-maturity	1,692		1,226
Deposits:
Time deposits	1,427,126		1,188,178
Total deposits	4,908,073		4,548,863
Loans and other liabilities:
FDIC clawback liability	28,588		26,905
Short-term borrowings	253,945		135,743
Long-term debt	414,947		353,972
FDIC warrants payable	4,441		4,633
Other brokered funds	380,611		642,185
Uncovered
Loans and other liabilities:
Impaired loans	48,819		41,428
Covered loans
Loans and other liabilities:
Impaired loans	27,308		35,321
Recurring basis
Loans and other liabilities:
Other brokered funds	66,800		72,300
Recurring basis | Covered loans
Loans and other liabilities:
Impaired loans	20,900		19,500
Non-recurring basis | Uncovered
Loans and other liabilities:
Impaired loans	11,000		7,600
Non-recurring basis | Covered loans
Loans and other liabilities:
Impaired loans	400		502
Level 1 | Recurring basis
Financial assets:
Cash and cash equivalents	79,357		86,185
Net loans, excluding covered loans	0		0
Net covered loans	0		0
Accrued interest receivable	0		0
FDIC indemnification asset	0		0
FDIC receivable	0		0
Company-owned life insurance	0		0
Security held-to-maturity	0		0
Deposits:
Savings and demand deposits	0		0
Time deposits	0		0
Total deposits	0		0
Loans and other liabilities:
FDIC clawback liability	0		0
Short-term borrowings	0		0
Long-term debt	0		0
FDIC warrants payable	0		0
Accrued interest payable	0		0
Deferred compensation plan liabilities	0		0
Level 1 | Non-recurring basis
Loans and other liabilities:
Impaired loans	0		0
Level 2 | Recurring basis
Financial assets:
Cash and cash equivalents	331,201		167,551
Net loans, excluding covered loans	0		0
Net covered loans	0		0
Accrued interest receivable	14,409		12,533
FDIC indemnification asset	0		0
FDIC receivable	5,543		6,062
Company-owned life insurance	104,972		97,782
Security held-to-maturity	0		0
Deposits:
Savings and demand deposits	3,414,192		3,288,414
Time deposits	1,493,607		1,260,453
Total deposits	4,907,799		4,548,867
Loans and other liabilities:
FDIC clawback liability	0		0
Short-term borrowings	253,945		135,743
Long-term debt	409,580		348,373
FDIC warrants payable	0		0
Accrued interest payable	2,079		1,476
Deferred compensation plan liabilities	1,475		587
Level 2 | Non-recurring basis
Loans and other liabilities:
Impaired loans	0		0
Level 3 | Recurring basis
Financial assets:
Cash and cash equivalents	0		0
Net loans, excluding covered loans	4,281,316		3,948,847
Net covered loans	349,004		420,627
Accrued interest receivable	0		0
FDIC indemnification asset	18,875		34,572
FDIC receivable	0		0
Company-owned life insurance	0		0
Security held-to-maturity	1,692		1,226
Deposits:
Savings and demand deposits	0		0
Time deposits	0		0
Total deposits	0		0
Loans and other liabilities:
FDIC clawback liability	28,588		26,905
Short-term borrowings	0		0
Long-term debt	0		0
FDIC warrants payable	4,441		4,633
Accrued interest payable	0		0
Deferred compensation plan liabilities	0		0
Level 3 | Non-recurring basis
Loans and other liabilities:
Impaired loans	11,354		8,106
Carrying Value | Recurring basis
Financial assets:
Cash and cash equivalents	410,558		253,736
Federal Home Loan Bank stock	25,418		20,212
Net loans, excluding covered loans	4,207,560		3,868,818
Net covered loans	264,507		325,137
Accrued interest receivable	14,409		12,533
FDIC indemnification asset	36,997		67,026
FDIC receivable	5,543		6,062
Company-owned life insurance	104,972		97,782
Security held-to-maturity	1,692		1,226
Deposits:
Savings and demand deposits	3,414,192		3,288,414
Time deposits	1,493,881		1,260,449
Total deposits	4,908,073		4,548,863
Loans and other liabilities:
FDIC clawback liability	28,588		26,905
Short-term borrowings	253,945		135,743
Long-term debt	414,947		353,972
FDIC warrants payable	4,441		4,633
Accrued interest payable	2,079		1,476
Deferred compensation plan liabilities	1,475		587
Total Fair Value | Recurring basis
Financial assets:
Cash and cash equivalents	410,558		253,736
Net loans, excluding covered loans	4,281,316		3,948,847
Net covered loans	349,004		420,627
Accrued interest receivable	14,409		12,533
FDIC indemnification asset	18,875		34,572
FDIC receivable	5,543		6,062
Company-owned life insurance	104,972		97,782
Security held-to-maturity	1,692		1,226
Deposits:
Savings and demand deposits	3,414,192		3,288,414
Time deposits	1,493,607		1,260,453
Total deposits	4,907,799		4,548,867
Loans and other liabilities:
FDIC clawback liability	28,588		26,905
Short-term borrowings	253,945		135,743
Long-term debt	409,580		348,373
FDIC warrants payable	4,441		4,633
Accrued interest payable	2,079		1,476
Deferred compensation plan liabilities	1,475		587
Total Fair Value | Non-recurring basis
Loans and other liabilities:
Impaired loans	$ 11,354		$ 8,106

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	$ 842,081	$ 734,674
Gross Unrealized Gains	7,040	7,703
Gross Unrealized Losses	(3,802)	(1,558)
Fair Value	845,319	740,819
Held-to-maturity:
Total securities held-to-maturity, amortized cost	1,692	1,226
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,692	1,226
U.S. government sponsored agency obligations
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	97,860	97,746
Gross Unrealized Gains	819	791
Gross Unrealized Losses	(396)	(179)
Fair Value	98,283	98,358
Taxable
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	4,361	397
Gross Unrealized Gains	7	0
Gross Unrealized Losses	(7)	0
Fair Value	4,361	397
Tax exempt
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	271,102	229,404
Gross Unrealized Gains	2,601	3,578
Gross Unrealized Losses	(1,949)	(723)
Fair Value	271,754	232,259
SBA Pools
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	31,960	33,824
Gross Unrealized Gains	389	209
Gross Unrealized Losses	0	(100)
Fair Value	32,349	33,933
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	332,457	289,156
Gross Unrealized Gains	2,766	2,886
Gross Unrealized Losses	(1,189)	(283)
Fair Value	334,034	291,759
Privately issued
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	26,604	18,814
Gross Unrealized Gains	1	27
Gross Unrealized Losses	(145)	(41)
Fair Value	26,460	18,800
Privately issued commercial mortgage-backed securities
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	19,547	5,127
Gross Unrealized Gains	12	3
Gross Unrealized Losses	(50)	0
Fair Value	19,509	5,130
Corporate debt securities
Investment securities available-for-sale
Total available-for-sale securities, amortized cost	58,190	60,206
Gross Unrealized Gains	445	209
Gross Unrealized Losses	(66)	(232)
Fair Value	$ 58,569	$ 60,183

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Information with respect to proceeds from sales of securities and the associated gains and losses
Proceeds	$ 135	$ 0	$ 24,750	$ 54,211
Gross gains	6	0	9	0
Gross losses	$ 0	$ 0	$ (110)	$ (2,310)

SECURITIES (Details 3)

SECURITIES (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Securities with contractual maturities:
Within one year	$ 5,921
After one year through five years	142,325
After five years through ten years	185,443
After ten years	508,392
Total available-for-sale securities, amortized cost	842,081	$ 734,674
Securities with contractual maturities:
Within one year	5,954
After one year through five years	143,842
After five years through ten years	185,589
After ten years	509,934
Total securities available-for-sale	845,319	740,819
Amortized Cost - Held To Maturity
After one year through five years	1,692
Total securities held-to-maturity, amortized cost	1,692	1,226
Fair Value - Held To Maturity
After one year through five years	1,692
Total securities held-to-maturity	1,692	1,226
Available-for-sale securities pledged as collateral
Securities with amortized cost pledged to secure borrowings and deposits	$ 453,200	$ 337,800

SECURITIES (Details 4)

SECURITIES (Details 4)	Jun. 30, 2015USD ($)security	Dec. 31, 2014USD ($)
Less than 12 Months
Fair Value	$ 366,934,000	$ 99,480,000
Unrealized losses	(3,556,000)	(552,000)
More than 12 Months
Fair Value	9,381,000	102,434,000
Unrealized losses	(246,000)	(1,006,000)
Total
Fair Value	376,315,000	201,914,000
Unrealized losses	$ (3,802,000)	(1,558,000)
Other information with respect to available-for-sale securities
Number of securities in portfolio | security	375
Number of securities in an unrealized loss position | security	151
Securities of any one issuer, other than U.S. Government, greater than 10% of shareholders equity	$ 0	0
Available-for-sale securities in unrealized loss position fair value	376,315,000	201,914,000
Available-for-sale securities, gross unrealized loss	3,802,000	1,558,000
U.S. government sponsored agency obligations
Less than 12 Months
Fair Value	54,604,000	0
Unrealized losses	(396,000)	0
More than 12 Months
Fair Value	0	14,821,000
Unrealized losses	0	(179,000)
Total
Fair Value	54,604,000	14,821,000
Unrealized losses	(396,000)	(179,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	54,604,000	14,821,000
Available-for-sale securities, gross unrealized loss	396,000	179,000
Taxable
Less than 12 Months
Fair Value	953,000
Unrealized losses	(7,000)
More than 12 Months
Fair Value	0
Unrealized losses	0
Total
Fair Value	953,000
Unrealized losses	(7,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	953,000
Available-for-sale securities, gross unrealized loss	7,000	0
Tax exempt
Less than 12 Months
Fair Value	137,675,000	31,054,000
Unrealized losses	(1,730,000)	(260,000)
More than 12 Months
Fair Value	8,026,000	33,650,000
Unrealized losses	(219,000)	(463,000)
Total
Fair Value	145,701,000	64,704,000
Unrealized losses	(1,949,000)	(723,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	145,701,000	64,704,000
Available-for-sale securities, gross unrealized loss	1,949,000	723,000
SBA Pools
Less than 12 Months
Fair Value		1,844,000
Unrealized losses		(4,000)
More than 12 Months
Fair Value		17,682,000
Unrealized losses		(96,000)
Total
Fair Value		19,526,000
Unrealized losses		(100,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value		19,526,000
Available-for-sale securities, gross unrealized loss	0	100,000
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Less than 12 Months
Fair Value	112,083,000	36,261,000
Unrealized losses	(1,164,000)	(85,000)
More than 12 Months
Fair Value	907,000	27,361,000
Unrealized losses	(25,000)	(198,000)
Total
Fair Value	112,990,000	63,622,000
Unrealized losses	(1,189,000)	(283,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	112,990,000	63,622,000
Available-for-sale securities, gross unrealized loss	1,189,000	283,000
Privately issued
Less than 12 Months
Fair Value	25,984,000	7,801,000
Unrealized losses	(145,000)	(41,000)
More than 12 Months
Fair Value	0	8,000
Unrealized losses	0	0
Total
Fair Value	25,984,000	7,809,000
Unrealized losses	(145,000)	(41,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	25,984,000	7,809,000
Available-for-sale securities, gross unrealized loss	145,000	41,000
Privately issued commercial mortgage-backed securities
Less than 12 Months
Fair Value	14,398,000
Unrealized losses	(50,000)
More than 12 Months
Fair Value	0
Unrealized losses	0
Total
Fair Value	14,398,000
Unrealized losses	(50,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	14,398,000
Available-for-sale securities, gross unrealized loss	50,000	0
Corporate debt securities
Less than 12 Months
Fair Value	21,237,000	22,520,000
Unrealized losses	(64,000)	(162,000)
More than 12 Months
Fair Value	448,000	8,912,000
Unrealized losses	(2,000)	(70,000)
Total
Fair Value	21,685,000	31,432,000
Unrealized losses	(66,000)	(232,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	21,685,000	31,432,000
Available-for-sale securities, gross unrealized loss	66,000	$ 232,000
Securities carrying fixed interest rates
Total
Fair Value	376,300,000
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	$ 376,300,000

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Loans
Total uncovered loans		$ 4,244,126	$ 3,902,637
Total		4,524,973	4,249,127
Deferred fees and costs		$ 2,700	4,600
Minimum
Loans
Term of finance		15 years
Maximum
Loans
Term of finance		30 years
Covered loans
Loans
Total covered loans		$ 280,847	346,490
Covered loans | Accounted for under ASC 310-30
Loans
Total covered loans		233,632	289,037
Covered loans | Excluded from ASC 310-30 accounting
Loans
Total covered loans		47,215	57,453
Uncovered
Loans
Total uncovered loans		4,244,126	3,902,637
Uncovered | Accounted for under ASC 310-30
Loans
Total uncovered loans		437,187	455,868
Uncovered | Excluded from ASC 310-30 accounting
Loans
Total uncovered loans		3,806,939	3,446,769
Residential real estate
Loans
Total uncovered loans	[1]	1,434,678	1,426,012
Total		1,531,049	1,534,238
Residential real estate | Covered loans
Loans
Total covered loans		96,371	108,226
Residential real estate | Covered loans | Accounted for under ASC 310-30
Loans
Total covered loans		75,655	86,515
Residential real estate | Covered loans | Excluded from ASC 310-30 accounting
Loans
Total covered loans		20,716	21,711
Residential real estate | Uncovered
Loans
Total uncovered loans		1,434,678	1,426,012
Residential real estate | Uncovered | Accounted for under ASC 310-30
Loans
Total uncovered loans		226,382	239,523
Residential real estate | Uncovered | Excluded from ASC 310-30 accounting
Loans
Total uncovered loans		1,208,296	1,186,489
Commercial real estate
Loans
Total uncovered loans		1,395,783	1,310,938
Total		1,539,681	1,497,600
Commercial real estate | Covered loans
Loans
Total covered loans		143,898	186,662
Commercial real estate | Covered loans | Accounted for under ASC 310-30
Loans
Total covered loans		124,722	160,886
Commercial real estate | Covered loans | Excluded from ASC 310-30 accounting
Loans
Total covered loans		19,176	25,776
Commercial real estate | Uncovered
Loans
Total uncovered loans		1,395,783	1,310,938
Commercial real estate | Uncovered | Accounted for under ASC 310-30
Loans
Total uncovered loans		184,620	190,148
Commercial real estate | Uncovered | Excluded from ASC 310-30 accounting
Loans
Total uncovered loans		1,211,163	1,120,790
Commercial and industrial
Loans
Total uncovered loans		1,066,353	869,477
Total		1,091,147	902,125
Commercial and industrial | Covered loans
Loans
Total covered loans		24,794	32,648
Commercial and industrial | Covered loans | Accounted for under ASC 310-30
Loans
Total covered loans		18,220	23,752
Commercial and industrial | Covered loans | Excluded from ASC 310-30 accounting
Loans
Total covered loans		6,574	8,896
Commercial and industrial | Uncovered
Loans
Total uncovered loans		1,066,353	869,477
Commercial and industrial | Uncovered | Accounted for under ASC 310-30
Loans
Total uncovered loans		16,730	15,499
Commercial and industrial | Uncovered | Excluded from ASC 310-30 accounting
Loans
Total uncovered loans		1,049,623	853,978
Real estate construction
Loans
Total uncovered loans	[1]	175,192	131,686
Total		182,618	141,075
Real estate construction | Covered loans
Loans
Total covered loans		7,426	9,389
Real estate construction | Covered loans | Accounted for under ASC 310-30
Loans
Total covered loans		6,761	8,415
Real estate construction | Covered loans | Excluded from ASC 310-30 accounting
Loans
Total covered loans		665	974
Real estate construction | Uncovered
Loans
Total uncovered loans		175,192	131,686
Real estate construction | Uncovered | Accounted for under ASC 310-30
Loans
Total uncovered loans		7,298	8,309
Real estate construction | Uncovered | Excluded from ASC 310-30 accounting
Loans
Total uncovered loans		167,894	123,377
Consumer
Loans
Total uncovered loans		172,120	164,524
Total		180,478	174,089
Consumer | Covered loans
Loans
Total covered loans		8,358	9,565
Consumer | Covered loans | Accounted for under ASC 310-30
Loans
Total covered loans		8,274	9,469
Consumer | Covered loans | Excluded from ASC 310-30 accounting
Loans
Total covered loans		84	96
Consumer | Uncovered
Loans
Total uncovered loans		172,120	164,524
Consumer | Uncovered | Accounted for under ASC 310-30
Loans
Total uncovered loans		2,157	2,389
Consumer | Uncovered | Excluded from ASC 310-30 accounting
Loans
Total uncovered loans		$ 169,963	$ 162,135
[1]	Amounts represent loans for which the Company has elected the fair value option. See Note 3.

LOANS (Details 2)

LOANS (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Uncovered
Information on nonperforming assets
Nonaccrual loans	$ 39,725	$ 35,111
Uncovered | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	340	53
Covered loans
Information on nonperforming assets
Nonaccrual loans	19,793	21,857
Covered loans | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	0	0
Nonperforming assets
Information on nonperforming assets
Total assets	105,391	104,559
Nonperforming assets | Uncovered
Information on nonperforming assets
Nonaccrual loans	39,725	35,111
Other real estate owned and repossessed assets	37,612	36,872
Total assets	77,337	71,983
Nonperforming assets | Covered loans
Information on nonperforming assets
Nonaccrual loans	19,793	21,857
Other real estate owned and repossessed assets	8,261	10,719
Total assets	28,054	32,576
Residential real estate | Uncovered | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	120	12
Residential real estate | Covered loans | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	0	0
Residential real estate | Nonperforming assets | Uncovered
Information on nonperforming assets
Nonaccrual loans	20,133	17,374
Residential real estate | Nonperforming assets | Covered loans
Information on nonperforming assets
Nonaccrual loans	2,071	1,848
Commercial real estate | Uncovered | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	0	0
Commercial real estate | Covered loans | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	0	0
Commercial real estate | Nonperforming assets | Uncovered
Information on nonperforming assets
Nonaccrual loans	15,727	13,756
Commercial real estate | Nonperforming assets | Covered loans
Information on nonperforming assets
Nonaccrual loans	14,968	15,723
Commercial and industrial | Uncovered | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	4	0
Commercial and industrial | Covered loans | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	0	0
Commercial and industrial | Nonperforming assets | Uncovered
Information on nonperforming assets
Nonaccrual loans	3,119	3,550
Commercial and industrial | Nonperforming assets | Covered loans
Information on nonperforming assets
Nonaccrual loans	2,369	3,560
Real estate construction | Uncovered | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	5	0
Real estate construction | Covered loans | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	0	0
Real estate construction | Nonperforming assets | Uncovered
Information on nonperforming assets
Nonaccrual loans	438	174
Real estate construction | Nonperforming assets | Covered loans
Information on nonperforming assets
Nonaccrual loans	365	713
Consumer | Uncovered | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	211	41
Consumer | Covered loans | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	0	0
Consumer | Nonperforming assets | Uncovered
Information on nonperforming assets
Nonaccrual loans	308	257
Consumer | Nonperforming assets | Covered loans
Information on nonperforming assets
Nonaccrual loans	$ 20	$ 13

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Loans and Allowance for Loan Losses
90 days or more past due		$ 191
Covered loans
Loans and Allowance for Loan Losses
Total covered loans	$ 280,847	346,490
Covered loans | Residential real estate
Loans and Allowance for Loan Losses
Total covered loans	96,371	108,226
Covered loans | Commercial real estate
Loans and Allowance for Loan Losses
Total covered loans	143,898	186,662
Covered loans | Commercial and industrial
Loans and Allowance for Loan Losses
Total covered loans	24,794	32,648
Covered loans | Real estate construction
Loans and Allowance for Loan Losses
Total covered loans	7,426	9,389
Covered loans | Consumer
Loans and Allowance for Loan Losses
Total covered loans	8,358	9,565
Excluded from ASC 310-30 accounting | Uncovered
Loans and Allowance for Loan Losses
30-59 days past due	15,100	23,226
60-89 days past due	5,571	3,599
90 days or more past due	22,691	24,210
Total past due	43,362	51,035
Current	3,763,577	3,395,734
Total uncovered loans, excluding ASC 310-30	3,806,939	3,446,769
90 days or more past due and still accruing	340	53
Excluded from ASC 310-30 accounting | Uncovered | Residential real estate
Loans and Allowance for Loan Losses
30-59 days past due	3,973	11,709
60-89 days past due	3,005	2,044
90 days or more past due	8,739	9,593
Total past due	15,717	23,346
Current	1,192,579	1,163,143
Total uncovered loans, excluding ASC 310-30	1,208,296	1,186,489
90 days or more past due and still accruing	120	12
Excluded from ASC 310-30 accounting | Uncovered | Commercial real estate
Loans and Allowance for Loan Losses
30-59 days past due	3,589	4,870
60-89 days past due	1,764	1,083
90 days or more past due	10,985	11,333
Total past due	16,338	17,286
Current	1,194,825	1,103,504
Total uncovered loans, excluding ASC 310-30	1,211,163	1,120,790
90 days or more past due and still accruing	0	0
Excluded from ASC 310-30 accounting | Uncovered | Commercial and industrial
Loans and Allowance for Loan Losses
30-59 days past due	6,184	4,679
60-89 days past due	42	184
90 days or more past due	2,465	2,960
Total past due	8,691	7,823
Current	1,040,932	846,155
Total uncovered loans, excluding ASC 310-30	1,049,623	853,978
90 days or more past due and still accruing	4	0
Excluded from ASC 310-30 accounting | Uncovered | Real estate construction
Loans and Allowance for Loan Losses
30-59 days past due	151	1,004
60-89 days past due	243	136
90 days or more past due	173	174
Total past due	567	1,314
Current	167,327	122,063
Total uncovered loans, excluding ASC 310-30	167,894	123,377
90 days or more past due and still accruing	5	0
Excluded from ASC 310-30 accounting | Uncovered | Consumer
Loans and Allowance for Loan Losses
30-59 days past due	1,203	964
60-89 days past due	517	152
90 days or more past due	329	150
Total past due	2,049	1,266
Current	167,914	160,869
Total uncovered loans, excluding ASC 310-30	169,963	162,135
90 days or more past due and still accruing	211	41
Excluded from ASC 310-30 accounting | Covered loans
Loans and Allowance for Loan Losses
30-59 days past due	667	611
60-89 days past due	207	42
90 days or more past due	6,255	9,383
Total past due	7,129	10,036
Current	40,086	47,417
Total covered loans	47,215	57,453
90 days or more past due and still accruing	0	0
Excluded from ASC 310-30 accounting | Covered loans | Residential real estate
Loans and Allowance for Loan Losses
30-59 days past due	537	238
60-89 days past due	140	35
90 days or more past due	1,307	1,179
Total past due	1,984	1,452
Current	18,732	20,259
Total covered loans	20,716	21,711
90 days or more past due and still accruing	0	0
Excluded from ASC 310-30 accounting | Covered loans | Commercial real estate
Loans and Allowance for Loan Losses
30-59 days past due	101	0
60-89 days past due	0	0
90 days or more past due	2,350	4,569
Total past due	2,451	4,569
Current	16,725	21,207
Total covered loans	19,176	25,776
90 days or more past due and still accruing	0	0
Excluded from ASC 310-30 accounting | Covered loans | Commercial and industrial
Loans and Allowance for Loan Losses
30-59 days past due	29	373
60-89 days past due	67	7
90 days or more past due	2,308	2,923
Total past due	2,404	3,303
Current	4,170	5,593
Total covered loans	6,574	8,896
90 days or more past due and still accruing	0	0
Excluded from ASC 310-30 accounting | Covered loans | Real estate construction
Loans and Allowance for Loan Losses
30-59 days past due	0	0
60-89 days past due	0	0
90 days or more past due	288	710
Total past due	288	710
Current	377	264
Total covered loans	665	974
90 days or more past due and still accruing	0	0
Excluded from ASC 310-30 accounting | Covered loans | Consumer
Loans and Allowance for Loan Losses
30-59 days past due	0	0
60-89 days past due	0	0
90 days or more past due	2	2
Total past due	2	2
Current	82	94
Total covered loans	84	96
90 days or more past due and still accruing	$ 0	$ 0

LOANS (Details 4)

LOANS (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Performing assets
Information as to total impaired loans
Troubled debt restructurings	$ 16,600	$ 19,800
Uncovered
Information as to total impaired loans
Nonaccrual loans	39,725	35,111
Impaired loans, total recorded investment	48,819	41,428
Uncovered | Performing assets
Information as to total impaired loans
Troubled debt restructurings	9,094	6,317
Uncovered | Performing assets | Residential real estate
Information as to total impaired loans
Troubled debt restructurings	2,392	1,368
Uncovered | Performing assets | Commercial real estate
Information as to total impaired loans
Troubled debt restructurings	3,741	3,785
Uncovered | Performing assets | Commercial and industrial
Information as to total impaired loans
Troubled debt restructurings	2,597	840
Uncovered | Performing assets | Real estate construction
Information as to total impaired loans
Troubled debt restructurings	131	90
Uncovered | Performing assets | Consumer
Information as to total impaired loans
Troubled debt restructurings	233	234
Covered loans
Information as to total impaired loans
Nonaccrual loans	19,793	21,857
Impaired loans, total recorded investment	27,308	35,321
Covered loans | Performing assets
Information as to total impaired loans
Troubled debt restructurings	7,515	13,464
Covered loans | Performing assets | Residential real estate
Information as to total impaired loans
Troubled debt restructurings	3,584	3,046
Covered loans | Performing assets | Commercial real estate
Information as to total impaired loans
Troubled debt restructurings	3,055	9,017
Covered loans | Performing assets | Commercial and industrial
Information as to total impaired loans
Troubled debt restructurings	569	1,137
Covered loans | Performing assets | Real estate construction
Information as to total impaired loans
Troubled debt restructurings	300	264
Covered loans | Performing assets | Consumer
Information as to total impaired loans
Troubled debt restructurings	$ 7	$ 0

LOANS (Details 5)

LOANS (Details 5) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Information as to total impaired loans
Period of required compliance for restructured obligation modified at market rate for not reporting it as TDR	6 months
Period of required compliance for restructured obligation modified at other than market rate for reconsidering it as performing	6 months
Nonperforming assets
Information as to total impaired loans
Troubled debt restructurings	$ 28.1	$ 25
Performing assets
Information as to total impaired loans
Troubled debt restructurings	$ 16.6	$ 19.8

LOANS (Details 6)

LOANS (Details 6) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)loan	Jun. 30, 2014USD ($)loan	Jun. 30, 2015USD ($)loan	Jun. 30, 2014USD ($)loan
Troubled Debt Restructurings
Total number of loans | loan	59	36	87	61
Total recorded investment (modified)	$ 7,151	$ 2,173	$ 11,506	$ 4,857
Net charge-offs (recoveries)	222	0	227	(3)
Provision (benefit) for loan losses	431	58	843	490
Loan forgiven	$ 187	$ 51	$ 187	$ 178
Uncovered
Troubled Debt Restructurings
Total number of loans | loan	43	20	64	36
Total recorded investment (modified)	$ 3,728	$ 885	$ 7,581	$ 2,984
Net charge-offs (recoveries)	192	0	230	(9)
Provision (benefit) for loan losses	$ 394	$ 19	$ 601	$ 381
Uncovered | Residential real estate
Troubled Debt Restructurings
Total number of loans | loan	17	9	26	15
Total recorded investment (modified)	$ 741	$ 450	$ 2,185	$ 748
Net charge-offs (recoveries)	0	0	1	0
Provision (benefit) for loan losses	$ 162	$ 22	$ 192	$ 127
Uncovered | Commercial real estate
Troubled Debt Restructurings
Total number of loans | loan	9	3	12	8
Total recorded investment (modified)	$ 1,929	$ 279	$ 3,134	$ 1,920
Net charge-offs (recoveries)	0	0	37	(9)
Provision (benefit) for loan losses	$ 0	$ 0	$ 129	$ 197
Uncovered | Commercial and industrial
Troubled Debt Restructurings
Total number of loans | loan	14	6	22	11
Total recorded investment (modified)	$ 925	$ 68	$ 1,999	$ 228
Net charge-offs (recoveries)	192	0	192	0
Provision (benefit) for loan losses	$ 232	$ (3)	$ 280	$ 31
Uncovered | Real estate construction
Troubled Debt Restructurings
Total number of loans | loan	2		3
Total recorded investment (modified)	$ 116		$ 246
Net charge-offs (recoveries)	0		0
Provision (benefit) for loan losses	$ 0		$ 0
Uncovered | Consumer
Troubled Debt Restructurings
Total number of loans | loan	1	2	1	2
Total recorded investment (modified)	$ 17	$ 88	$ 17	$ 88
Net charge-offs (recoveries)	0	0	0	0
Provision (benefit) for loan losses	$ 0	$ 0	$ 0	$ 26
Covered loans
Troubled Debt Restructurings
Total number of loans | loan	16	16	23	25
Total recorded investment (modified)	$ 3,423	$ 1,288	$ 3,925	$ 1,873
Net charge-offs (recoveries)	30	0	(3)	6
Provision (benefit) for loan losses	$ 37	$ 39	$ 242	$ 109
Covered loans | Residential real estate
Troubled Debt Restructurings
Total number of loans | loan	6	9	9	14
Total recorded investment (modified)	$ 859	$ 359	$ 999	$ 472
Net charge-offs (recoveries)	0	0	5	6
Provision (benefit) for loan losses	$ 5	$ 22	$ 77	$ 29
Covered loans | Commercial real estate
Troubled Debt Restructurings
Total number of loans | loan	8	2	10	3
Total recorded investment (modified)	$ 2,442	$ 652	$ 2,694	$ 1,098
Net charge-offs (recoveries)	0	0	0	0
Provision (benefit) for loan losses	$ 2	$ 6	$ 81	$ 66
Covered loans | Commercial and industrial
Troubled Debt Restructurings
Total number of loans | loan		5	1	8
Total recorded investment (modified)		$ 277	$ 95	$ 303
Net charge-offs (recoveries)		0	0	0
Provision (benefit) for loan losses		11	$ 92	14
Covered loans | Real estate construction
Troubled Debt Restructurings
Total number of loans | loan	2		2
Total recorded investment (modified)	$ 122		$ 122
Net charge-offs (recoveries)	30		(8)
Provision (benefit) for loan losses	30		$ (8)
Covered loans | Consumer
Troubled Debt Restructurings
Total number of loans | loan			1
Total recorded investment (modified)			$ 15
Net charge-offs (recoveries)			0
Provision (benefit) for loan losses			0
Principal deferral
Troubled Debt Restructurings
Total recorded investment (modified)	1,581	151	2,880	307
Principal deferral | Uncovered
Troubled Debt Restructurings
Total recorded investment (modified)	788	151	2,007	194
Principal deferral | Uncovered | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	403	144	1,286	144
Principal deferral | Uncovered | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	93	0	93	0
Principal deferral | Uncovered | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)	231	7	567	50
Principal deferral | Uncovered | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)	44		44
Principal deferral | Uncovered | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)	17	0	17	0
Principal deferral | Covered loans
Troubled Debt Restructurings
Total recorded investment (modified)	793	0	873	113
Principal deferral | Covered loans | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	747	0	812	113
Principal deferral | Covered loans | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	0	0	0
Principal deferral | Covered loans | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)		0	0	0
Principal deferral | Covered loans | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)	46		46
Principal deferral | Covered loans | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)			15
Principal reduction
Troubled Debt Restructurings
Total recorded investment (modified)	114	261	114	329
Principal reduction | Uncovered
Troubled Debt Restructurings
Total recorded investment (modified)	114	247	114	315
Principal reduction | Uncovered | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	114	159	114	227
Principal reduction | Uncovered | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	0	0	0
Principal reduction | Uncovered | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)	0	0	0	0
Principal reduction | Uncovered | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)	0		0
Principal reduction | Uncovered | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)	0	88	0	88
Principal reduction | Covered loans
Troubled Debt Restructurings
Total recorded investment (modified)	0	14	0	14
Principal reduction | Covered loans | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	14	0	14
Principal reduction | Covered loans | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	0	0	0
Principal reduction | Covered loans | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)		0	0	0
Principal reduction | Covered loans | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)	0		0
Principal reduction | Covered loans | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)			0
Interest rate
Troubled Debt Restructurings
Total recorded investment (modified)	4,772	1,415	6,565	2,385
Interest rate | Uncovered
Troubled Debt Restructurings
Total recorded investment (modified)	2,142	241	3,513	1,185
Interest rate | Uncovered | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	224	0	785	230
Interest rate | Uncovered | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	1,304	180	1,402	894
Interest rate | Uncovered | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)	542	61	1,254	61
Interest rate | Uncovered | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)	72		72
Interest rate | Uncovered | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)	0	0	0	0
Interest rate | Covered loans
Troubled Debt Restructurings
Total recorded investment (modified)	2,630	1,174	3,052	1,200
Interest rate | Covered loans | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	112	345	187	345
Interest rate | Covered loans | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	2,442	652	2,694	652
Interest rate | Covered loans | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)		177	95	203
Interest rate | Covered loans | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)	76		76
Interest rate | Covered loans | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)			0
Forbearance agreement
Troubled Debt Restructurings
Total recorded investment (modified)	684	346	1,947	1,836
Forbearance agreement | Uncovered
Troubled Debt Restructurings
Total recorded investment (modified)	684	246	1,947	1,290
Forbearance agreement | Uncovered | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	147	0	147
Forbearance agreement | Uncovered | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	532	99	1,639	1,026
Forbearance agreement | Uncovered | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)	152	0	178	117
Forbearance agreement | Uncovered | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)	0		130
Forbearance agreement | Uncovered | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)	0	0	0	0
Forbearance agreement | Covered loans
Troubled Debt Restructurings
Total recorded investment (modified)	0	100	0	546
Forbearance agreement | Covered loans | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	0	0	0
Forbearance agreement | Covered loans | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	0	0	446
Forbearance agreement | Covered loans | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)		$ 100	0	$ 100
Forbearance agreement | Covered loans | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)	$ 0		0
Forbearance agreement | Covered loans | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)			$ 0

LOANS (Details 7)

LOANS (Details 7)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)loan	Jun. 30, 2014USD ($)loan	Jun. 30, 2015USD ($)loan	Jun. 30, 2014USD ($)loan
Troubled Debt Restructurings
Total number of loans | loan	33	28	37	53
Total recorded investment	$ 4,879,000	$ 2,406,000	$ 5,053,000	$ 4,599,000
Charged-off following a subsequent default	144,000	$ 13,000	247,000	$ 768,000
Commitments to lend additional funds to borrowers whose terms have been modified in TDRs	$ 352,000		$ 352,000
Uncovered
Troubled Debt Restructurings
Total number of loans | loan	28	18	32	28
Total recorded investment	$ 4,543,000	$ 1,632,000	$ 4,717,000	$ 3,177,000
Charged-off following a subsequent default	$ 144,000	$ 13,000	$ 247,000	$ 271,000
Uncovered | Residential real estate
Troubled Debt Restructurings
Total number of loans | loan	14	14	18	20
Total recorded investment	$ 1,701,000	$ 951,000	$ 1,875,000	$ 1,245,000
Charged-off following a subsequent default	$ 0	$ 13,000	$ 29,000	$ 95,000
Uncovered | Commercial real estate
Troubled Debt Restructurings
Total number of loans | loan	11	1	11	3
Total recorded investment	$ 2,812,000	$ 546,000	$ 2,812,000	$ 1,797,000
Charged-off following a subsequent default	$ 144,000	$ 0	$ 218,000	$ 176,000
Uncovered | Commercial and industrial
Troubled Debt Restructurings
Total number of loans | loan	3	2	3	2
Total recorded investment	$ 30,000	$ 135,000	$ 30,000	$ 135,000
Charged-off following a subsequent default	$ 0	$ 0	$ 0	$ 0
Uncovered | Consumer
Troubled Debt Restructurings
Total number of loans | loan		1		3
Total recorded investment		$ 0		$ 0
Charged-off following a subsequent default		$ 0		$ 0
Covered loans
Troubled Debt Restructurings
Total number of loans | loan	5	10	5	25
Total recorded investment	$ 336,000	$ 774,000	$ 336,000	$ 1,422,000
Charged-off following a subsequent default	$ 0	$ 0	$ 0	$ 497,000
Covered loans | Residential real estate
Troubled Debt Restructurings
Total number of loans | loan	3	5	3	7
Total recorded investment	$ 111,000	$ 175,000	$ 111,000	$ 219,000
Charged-off following a subsequent default	$ 0	$ 0	$ 0	$ 12,000
Covered loans | Commercial real estate
Troubled Debt Restructurings
Total number of loans | loan	1	2	1	6
Total recorded investment	$ 130,000	$ 546,000	$ 130,000	$ 669,000
Charged-off following a subsequent default	$ 0	$ 0	$ 0	$ 0
Covered loans | Commercial and industrial
Troubled Debt Restructurings
Total number of loans | loan	1	2	1	9
Total recorded investment	$ 95,000	$ 53,000	$ 95,000	$ 188,000
Charged-off following a subsequent default	$ 0	$ 0	$ 0	$ 2,000
Covered loans | Real estate construction
Troubled Debt Restructurings
Total number of loans | loan		0		1
Total recorded investment		$ 0		$ 346,000
Charged-off following a subsequent default		$ 0		$ 483,000
Covered loans | Consumer
Troubled Debt Restructurings
Total number of loans | loan		1		2
Total recorded investment		$ 0		$ 0
Charged-off following a subsequent default		$ 0		$ 0

LOANS (Details 8)

LOANS (Details 8) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	$ 4,244,126	$ 3,902,637
Covered loans	280,847	346,490
Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	1,395,783	1,310,938
Covered loans	143,898	186,662
Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	1,066,353	869,477
Covered loans	24,794	32,648
Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	175,192	131,686
Covered loans	7,426	9,389
Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	2,637,328	2,312,101
Covered loans	176,118	228,699
Pass | Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	1,250,671	1,153,132
Covered loans	88,649	102,952
Pass | Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	1,008,042	824,239
Covered loans	13,396	16,718
Pass | Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	169,484	123,822
Covered loans	4,144	3,817
Pass | Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	2,428,197	2,101,193
Covered loans	106,189	123,487
Special Mention | Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	47,245	63,567
Covered loans	6,565	16,073
Special Mention | Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	35,986	29,511
Covered loans	932	1,875
Special Mention | Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	71	1,981
Covered loans	67	792
Special Mention | Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	83,302	95,059
Covered loans	7,564	18,740
Substandard | Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	97,867	94,239
Covered loans	48,684	67,637
Substandard | Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	22,325	15,727
Covered loans	10,466	14,055
Substandard | Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	5,637	5,883
Covered loans	3,215	4,780
Substandard | Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	125,829	115,849
Covered loans	62,365	86,472
Doubtful | Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	0	0
Covered loans	0	0
Doubtful | Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	0	0
Covered loans	0	0
Doubtful | Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	0	0
Covered loans	0	0
Doubtful | Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Uncovered loans	0	0
Covered loans	$ 0	$ 0

LOANS (Details 9)

LOANS (Details 9) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Loans by credit quality
Uncovered loans	$ 4,244,126	$ 3,902,637
Covered loans	280,847	346,490
Residential real estate
Loans by credit quality
Uncovered loans	1,434,678	1,426,012
Covered loans	96,371	108,226
Consumer
Loans by credit quality
Uncovered loans	172,120	164,524
Covered loans	8,358	9,565
Residential real estate and consumer loans
Loans by credit quality
Uncovered loans	1,606,798	1,590,536
Covered loans	104,729	117,791
Performing assets | Residential real estate
Loans by credit quality
Uncovered loans	1,414,545	1,408,638
Covered loans	94,300	106,378
Performing assets | Consumer
Loans by credit quality
Uncovered loans	171,812	164,267
Covered loans	8,338	9,552
Performing assets | Residential real estate and consumer loans
Loans by credit quality
Uncovered loans	1,586,357	1,572,905
Covered loans	102,638	115,930
Nonperforming assets | Residential real estate
Loans by credit quality
Uncovered loans	20,133	17,374
Covered loans	2,071	1,848
Nonperforming assets | Consumer
Loans by credit quality
Uncovered loans	308	257
Covered loans	20	13
Nonperforming assets | Residential real estate and consumer loans
Loans by credit quality
Uncovered loans	20,441	17,631
Covered loans	$ 2,091	$ 1,861

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Uncovered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	$ 31,080		$ 31,080		$ 23,310
Recorded investment with related allowance	17,739		17,739		12,284
Impaired loans, total recorded investment	48,819		48,819		35,594
Contractual principal balance	77,538		77,538		43,687
Related allowance	4,436		4,436		3,450
Average recorded investment	50,225	$ 22,258	51,668	$ 23,029
Interest income recognized	1,216	188	2,109	404
Covered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	10,272		10,272		14,781
Recorded investment with related allowance	17,036		17,036		15,348
Impaired loans, total recorded investment	27,308		27,308		30,129
Contractual principal balance	38,851		38,851		38,844
Related allowance	2,684		2,684		1,803
Average recorded investment	27,941	24,711	28,394	24,901
Interest income recognized	520	351	913	715
Residential real estate | Uncovered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	14,124		14,124		14,316
Recorded investment with related allowance	8,401		8,401		4,268
Impaired loans, total recorded investment	22,525		22,525		18,584
Contractual principal balance	30,095		30,095		23,080
Related allowance	2,280		2,280		1,110
Average recorded investment	23,128	14,870	23,277	15,038
Interest income recognized	302	134	500	279
Residential real estate | Covered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	2,903		2,903		2,155
Recorded investment with related allowance	2,752		2,752		2,583
Impaired loans, total recorded investment	5,655		5,655		4,738
Contractual principal balance	7,424		7,424		6,388
Related allowance	407		407		417
Average recorded investment	5,775	4,364	5,803	4,378
Interest income recognized	98	63	174	127
Commercial real estate | Uncovered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	12,684		12,684		7,609
Recorded investment with related allowance	6,784		6,784		5,956
Impaired loans, total recorded investment	19,468		19,468		13,565
Contractual principal balance	33,628		33,628		17,016
Related allowance	1,449		1,449		1,276
Average recorded investment	20,005	5,686	20,445	6,280
Interest income recognized	807	38	1,282	84
Commercial real estate | Covered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	4,594		4,594		10,400
Recorded investment with related allowance	13,429		13,429		11,985
Impaired loans, total recorded investment	18,023		18,023		22,385
Contractual principal balance	24,656		24,656		28,755
Related allowance	1,950		1,950		1,277
Average recorded investment	18,203	17,615	18,329	17,689
Interest income recognized	260	266	497	533
Commercial and industrial | Uncovered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	3,647		3,647		915
Recorded investment with related allowance	2,069		2,069		1,884
Impaired loans, total recorded investment	5,716		5,716		2,799
Contractual principal balance	12,386		12,386		2,807
Related allowance	497		497		982
Average recorded investment	5,942	1,668	6,784	1,676
Interest income recognized	93	15	282	39
Commercial and industrial | Covered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	2,130		2,130		1,545
Recorded investment with related allowance	808		808		779
Impaired loans, total recorded investment	2,938		2,938		2,324
Contractual principal balance	5,706		5,706		2,668
Related allowance	327		327		109
Average recorded investment	3,094	2,299	3,333	2,399
Interest income recognized	89	21	161	44
Real estate construction | Uncovered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	333		333		174
Recorded investment with related allowance	236		236		0
Impaired loans, total recorded investment	569		569		174
Contractual principal balance	643		643		174
Related allowance	66		66		0
Average recorded investment	580		573
Interest income recognized	4		25
Real estate construction | Covered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	619		619		670
Recorded investment with related allowance	46		46		0
Impaired loans, total recorded investment	665		665		670
Contractual principal balance	989		989		994
Related allowance	0		0		0
Average recorded investment	842	412	901	413
Interest income recognized	72	0	79	9
Consumer | Uncovered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	292		292		296
Recorded investment with related allowance	249		249		176
Impaired loans, total recorded investment	541		541		472
Contractual principal balance	786		786		610
Related allowance	144		144		82
Average recorded investment	570	34	589	35
Interest income recognized	10	1	20	2
Consumer | Covered loans individually evaluated
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	26		26		11
Recorded investment with related allowance	1		1		1
Impaired loans, total recorded investment	27		27		12
Contractual principal balance	76		76		39
Related allowance	0		0		$ 0
Average recorded investment	27	21	28	22
Interest income recognized	$ 1	$ 1	$ 2	$ 2

ALLOWANCE FOR LOAN LOSSES (De72

ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period				$ 33,819
Ending allowance for loan losses		$ 36,566		36,566
Allowance for loan losses:
Allowance for loan losses		36,566		33,819		$ 36,566	$ 33,819
Balance of loans:
Total uncovered loans						4,244,126	3,902,637
Uncovered
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period		34,477	$ 22,771	33,819	$ 17,746
Provision (benefit) for loan and lease losses		1,069	3,219	4,481	9,643
Gross charge-offs		(5,273)	(5,533)	(10,653)	(8,506)
Recoveries		6,293	3,903	8,919	5,477
Net (charge-offs) recoveries		1,020	(1,630)	(1,734)	(3,029)
Ending allowance for loan losses		36,566	24,360	36,566	24,360
Allowance for loan losses:
Individually evaluated for impairment						4,436	3,450
Collectively evaluated for impairment						19,776	16,910
Allowance for loan losses		34,477	22,771	33,819	17,746	36,566	33,819
Balance of loans:
Individually evaluated for impairment						48,819	35,594
Collectively evaluated for impairment						3,758,120	3,411,175
Total uncovered loans						4,244,126	3,902,637
Uncovered | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period				13,459
Ending allowance for loan losses		12,354		12,354
Allowance for loan losses:
Allowance for loan losses		12,354		13,459		12,354	13,459
Balance of loans:
Total uncovered loans						437,187	455,868
Residential real estate
Balance of loans:
Total uncovered loans	[1]					1,434,678	1,426,012
Residential real estate | Uncovered
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period		10,879	9,896	12,193	7,708
Provision (benefit) for loan and lease losses		282	695	659	3,559
Gross charge-offs		(1,081)	(1,381)	(3,218)	(2,817)
Recoveries		1,008	540	1,454	1,300
Net (charge-offs) recoveries		(73)	(841)	(1,764)	(1,517)
Ending allowance for loan losses		11,088	9,750	11,088	9,750
Allowance for loan losses:
Individually evaluated for impairment						2,280	1,110
Collectively evaluated for impairment						3,677	4,850
Allowance for loan losses		10,879	9,896	12,193	7,708	11,088	12,193
Balance of loans:
Individually evaluated for impairment						22,525	18,584
Collectively evaluated for impairment						1,185,771	1,167,905
Total uncovered loans						1,434,678	1,426,012
Residential real estate | Uncovered | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period				6,233
Ending allowance for loan losses		5,131		5,131
Allowance for loan losses:
Allowance for loan losses		5,131		6,233		5,131	6,233
Balance of loans:
Total uncovered loans						226,382	239,523
Commercial real estate
Balance of loans:
Total uncovered loans						1,395,783	1,310,938
Commercial real estate | Uncovered
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period		11,161	6,776	11,128	4,267
Provision (benefit) for loan and lease losses		154	2,786	47	5,924
Gross charge-offs		(2,929)	(3,586)	(4,547)	(4,831)
Recoveries		3,796	1,870	5,554	2,486
Net (charge-offs) recoveries		867	(1,716)	1,007	(2,345)
Ending allowance for loan losses		12,182	7,846	12,182	7,846
Allowance for loan losses:
Individually evaluated for impairment						1,449	1,276
Collectively evaluated for impairment						5,185	4,623
Allowance for loan losses		11,161	6,776	11,128	4,267	12,182	11,128
Balance of loans:
Individually evaluated for impairment						19,468	13,565
Collectively evaluated for impairment						1,191,695	1,107,225
Total uncovered loans						1,395,783	1,310,938
Commercial real estate | Uncovered | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period				5,229
Ending allowance for loan losses		5,548		5,548
Allowance for loan losses:
Allowance for loan losses		5,548		5,229		5,548	5,229
Balance of loans:
Total uncovered loans						184,620	190,148
Commercial and industrial
Balance of loans:
Total uncovered loans						1,066,353	869,477
Commercial and industrial | Uncovered
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period		9,475	4,757	7,835	3,404
Provision (benefit) for loan and lease losses		679	425	3,366	1,761
Gross charge-offs		(735)	(481)	(2,002)	(626)
Recoveries		1,326	439	1,546	601
Net (charge-offs) recoveries		591	(42)	(456)	(25)
Ending allowance for loan losses		10,745	5,140	10,745	5,140
Allowance for loan losses:
Individually evaluated for impairment						497	982
Collectively evaluated for impairment						9,485	5,968
Allowance for loan losses		9,475	4,757	7,835	3,404	10,745	7,835
Balance of loans:
Individually evaluated for impairment						5,716	2,799
Collectively evaluated for impairment						1,043,907	851,179
Total uncovered loans						1,066,353	869,477
Commercial and industrial | Uncovered | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period				885
Ending allowance for loan losses		763		763
Allowance for loan losses:
Allowance for loan losses		763		885		763	885
Balance of loans:
Total uncovered loans						16,730	15,499
Real estate construction
Balance of loans:
Total uncovered loans	[1]					175,192	131,686
Real estate construction | Uncovered
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period		1,685	1,083	1,599	2,027
Provision (benefit) for loan and lease losses		(93)	(618)	(129)	(1,483)
Gross charge-offs		(272)	(28)	(307)	(109)
Recoveries		128	961	285	963
Net (charge-offs) recoveries		(144)	933	(22)	854
Ending allowance for loan losses		1,448	1,398	1,448	1,398
Allowance for loan losses:
Individually evaluated for impairment						66	0
Collectively evaluated for impairment						584	649
Allowance for loan losses		1,685	1,083	1,599	2,027	1,448	1,599
Balance of loans:
Individually evaluated for impairment						569	174
Collectively evaluated for impairment						167,325	123,203
Total uncovered loans						175,192	131,686
Real estate construction | Uncovered | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period				950
Ending allowance for loan losses		798		798
Allowance for loan losses:
Allowance for loan losses		798		950		798	950
Balance of loans:
Total uncovered loans						7,298	8,309
Consumer
Balance of loans:
Total uncovered loans						172,120	164,524
Consumer | Uncovered
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period		1,277	259	1,064	340
Provision (benefit) for loan and lease losses		47	(69)	538	(118)
Gross charge-offs		(256)	(57)	(579)	(123)
Recoveries		35	93	80	127
Net (charge-offs) recoveries		(221)	36	(499)	4
Ending allowance for loan losses		1,103	226	1,103	226
Allowance for loan losses:
Individually evaluated for impairment						144	82
Collectively evaluated for impairment						845	820
Allowance for loan losses		1,277	$ 259	1,064	$ 340	1,103	1,064
Balance of loans:
Individually evaluated for impairment						541	472
Collectively evaluated for impairment						169,422	161,663
Total uncovered loans						172,120	164,524
Consumer | Uncovered | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period				162
Ending allowance for loan losses		114		114
Allowance for loan losses:
Allowance for loan losses		$ 114		$ 162		114	162
Balance of loans:
Total uncovered loans						$ 2,157	$ 2,389
[1]	Amounts represent loans for which the Company has elected the fair value option. See Note 3.

ALLOWANCE FOR LOAN LOSSES (De73

ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period			$ 21,353
Ending allowance for loan losses	$ 16,340		16,340
Allowance for loan losses:
Allowance for loan losses	16,340		21,353		$ 16,340	$ 21,353
Balance of loans:
Total loans, covered					280,847	346,490
Covered loans
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	17,988	$ 38,000	21,353	$ 40,381
Provision (benefit) for loan and lease losses	(8,382)	(7,321)	(9,801)	(9,819)
Gross charge-offs	(2,664)	(4,130)	(8,282)	(8,078)
Recoveries	9,398	6,194	13,070	10,259
Net (charge-offs) recoveries	6,734	2,064	4,788	2,181
Ending allowance for loan losses	16,340	32,743	16,340	32,743
Allowance for loan losses:
Individually evaluated for impairment					2,684	1,803
Collectively evaluated for impairment					256	277
Allowance for loan losses	17,988	38,000	21,353	40,381	16,340	21,353
Balance of loans:
Individually evaluated for impairment					27,308	30,129
Collectively evaluated for impairment					19,907	27,324
Total loans, covered					280,847	346,490
Covered loans | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period			19,273
Ending allowance for loan losses	13,400		13,400
Allowance for loan losses:
Allowance for loan losses	13,400		19,273		13,400	19,273
Balance of loans:
Total loans, covered					233,632	289,037
Residential real estate | Covered loans
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	4,159	5,077	3,981	4,696
Provision (benefit) for loan and lease losses	(162)	91	151	783
Gross charge-offs	(152)	(412)	(476)	(1,275)
Recoveries	251	556	440	1,108
Net (charge-offs) recoveries	99	144	(36)	(167)
Ending allowance for loan losses	4,096	5,312	4,096	5,312
Allowance for loan losses:
Individually evaluated for impairment					407	417
Collectively evaluated for impairment					222	123
Allowance for loan losses	4,159	5,077	3,981	4,696	4,096	3,981
Balance of loans:
Individually evaluated for impairment					5,655	4,738
Collectively evaluated for impairment					15,061	16,973
Total loans, covered					96,371	108,226
Residential real estate | Covered loans | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period			3,441
Ending allowance for loan losses	3,467		3,467
Allowance for loan losses:
Allowance for loan losses	3,467		3,441		3,467	3,441
Balance of loans:
Total loans, covered					75,655	86,515
Commercial real estate | Covered loans
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	9,904	24,062	13,663	26,394
Provision (benefit) for loan and lease losses	(6,267)	(5,848)	(8,700)	(7,839)
Gross charge-offs	(777)	(1,209)	(4,588)	(3,195)
Recoveries	6,306	4,270	8,791	5,915
Net (charge-offs) recoveries	5,529	3,061	4,203	2,720
Ending allowance for loan losses	9,166	21,275	9,166	21,275
Allowance for loan losses:
Individually evaluated for impairment					1,950	1,277
Collectively evaluated for impairment					4	57
Allowance for loan losses	9,904	24,062	13,663	26,394	9,166	13,663
Balance of loans:
Individually evaluated for impairment					18,023	22,385
Collectively evaluated for impairment					1,153	3,391
Total loans, covered					143,898	186,662
Commercial real estate | Covered loans | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period			12,329
Ending allowance for loan losses	7,212		7,212
Allowance for loan losses:
Allowance for loan losses	7,212		12,329		7,212	12,329
Balance of loans:
Total loans, covered					124,722	160,886
Commercial and industrial | Covered loans
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	2,812	6,759	2,577	7,227
Provision (benefit) for loan and lease losses	(2,083)	(1,411)	(1,558)	(2,501)
Gross charge-offs	(1,274)	(1,500)	(2,091)	(2,527)
Recoveries	2,638	692	3,165	2,341
Net (charge-offs) recoveries	1,364	(808)	1,074	(186)
Ending allowance for loan losses	2,093	4,540	2,093	4,540
Allowance for loan losses:
Individually evaluated for impairment					327	109
Collectively evaluated for impairment					29	89
Allowance for loan losses	2,812	6,759	2,577	7,227	2,093	2,577
Balance of loans:
Individually evaluated for impairment					2,938	2,324
Collectively evaluated for impairment					3,636	6,572
Total loans, covered					24,794	32,648
Commercial and industrial | Covered loans | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period			2,379
Ending allowance for loan losses	1,737		1,737
Allowance for loan losses:
Allowance for loan losses	1,737		2,379		1,737	2,379
Balance of loans:
Total loans, covered					18,220	23,752
Real estate construction | Covered loans
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	1,075	2,003	1,086	1,984
Provision (benefit) for loan and lease losses	207	(95)	326	(178)
Gross charge-offs	(454)	(979)	(962)	(1,004)
Recoveries	126	590	504	717
Net (charge-offs) recoveries	(328)	(389)	(458)	(287)
Ending allowance for loan losses	954	1,519	954	1,519
Allowance for loan losses:
Individually evaluated for impairment					0	0
Collectively evaluated for impairment					0	7
Allowance for loan losses	1,075	2,003	1,086	1,984	954	1,086
Balance of loans:
Individually evaluated for impairment					665	670
Collectively evaluated for impairment					0	304
Total loans, covered					7,426	9,389
Real estate construction | Covered loans | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period			1,079
Ending allowance for loan losses	954		954
Allowance for loan losses:
Allowance for loan losses	954		1,079		954	1,079
Balance of loans:
Total loans, covered					6,761	8,415
Consumer | Covered loans
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	38	99	46	80
Provision (benefit) for loan and lease losses	(77)	(58)	(20)	(84)
Gross charge-offs	(7)	(30)	(165)	(77)
Recoveries	77	86	170	178
Net (charge-offs) recoveries	70	56	5	101
Ending allowance for loan losses	31	97	31	97
Allowance for loan losses:
Individually evaluated for impairment					0	0
Collectively evaluated for impairment					1	1
Allowance for loan losses	38	$ 99	46	$ 80	31	46
Balance of loans:
Individually evaluated for impairment					27	12
Collectively evaluated for impairment					57	84
Total loans, covered					8,358	9,565
Consumer | Covered loans | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period			45
Ending allowance for loan losses	30		30
Allowance for loan losses:
Allowance for loan losses	$ 30		$ 45		30	45
Balance of loans:
Total loans, covered					$ 8,274	$ 9,469

ACQUIRED LOANS AND LOSS SHARE74

ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING
Percentage of losses incurred to be reimbursed by FDIC for loans covered by loss sharing agreements			80.00%
Period of clawback payment to FDIC following the acquisition in event actual losses fail to reach stated levels			10 years 45 days
Estimated FDIC clawback liability	$ 28,588		$ 28,588		$ 26,905
Change in carrying amount of accretable discount
Balance at beginning of period	278,825	$ 311,171	277,058	$ 302,287
Additions due to acquisitions	0	0	5,268	32,764
Discount accretion	(19,242)	(24,342)	(40,206)	(47,007)
Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations	21,642	24,543	51,073	40,907
Other activity, net	(21,161)	(13,952)	(33,129)	(31,531)
Balance at end of period	260,064	297,420	260,064	297,420
Expected cash flows for loans
Identified improvement in the cash flow expectations	21,600	24,500	51,100	40,900
Benefit for loan losses - covered:
Total benefit for loan losses-covered	(8,382)	(7,321)	(9,801)	(9,819)
Less: FDIC loss share income:
Total loss sharing income (expense) due to provision for loan losses-covered	(5,769)	(4,019)	(7,282)	(3,955)
Net (increase) decrease to income before taxes:
Net (increase) decrease to income before taxes	(2,613)	(3,302)	(2,519)	(5,864)
Accounted for under ASC 310-30
Expected cash flows for loans
Contractual cash flows	1,163,849		1,163,849		1,281,482
Non-accretable difference	(232,966)		(232,966)		(259,519)
Accretable yield	(260,064)		(260,064)		(277,058)
Loans accounted	670,819		670,819		744,905
Benefit for loan losses - covered:
Net impairment recorded as a result of re-estimation of cash flows on loans	1,223	1,066	2,938	2,365
Less: FDIC loss share income:
Income recorded as a result of re-estimation of cash flows on loans	765	1,923	1,042	3,504
Net (increase) decrease to income before taxes:
Net income recorded as a result of re-estimation of cash flows on loans	458	(857)	1,896	(1,139)
Cash flow improvements related to covered loans	8,600	8,000	16,700	16,400
Accounted for under ASC 310-20 and ASC 310-40
Benefit for loan losses - covered:
Additional benefit recorded, net of charge-offs, for covered loans	(9,605)	(8,387)	(12,739)	(12,184)
Less: FDIC loss share income:
Income (expense) recorded, to offset benefit, for covered loans	(6,534)	(5,942)	(8,324)	(7,459)
Net (increase) decrease to income before taxes:
Net (income) expense recorded, for covered loans	(3,071)	$ (2,445)	(4,415)	$ (4,725)
CF Bancorp
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING
Estimated FDIC clawback liability	24,000		24,000		22,600
First Banking Center
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING
Estimated FDIC clawback liability	4,500		4,500		4,300
Peoples State Bank
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING
Estimated FDIC clawback liability	$ 119		$ 119		$ 4

ACQUIRED LOANS AND LOSS SHARE75

ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
FDIC Indemnification Asset
Balance at beginning of period	$ 50,702	$ 119,045	$ 67,026	$ 131,861
Accretion	(8,548)	(5,506)	(17,798)	(12,224)
Sales and write-downs of other real estate owned	(475)	(281)	(828)	(753)
Net effect of change in expected cash flows on covered assets	490	(6,130)	(1,200)	(8,155)
Reimbursements requested from FDIC (reclassification to FDIC receivable)	(5,172)	(4,434)	(10,203)	(8,035)
Balance at the end of the period	36,997	102,694	36,997	102,694
FDIC Receivable
Balance at beginning of period	7,839	8,130	6,062	7,783
Sales and write-downs of other real estate owned (covered)	150	(55)	16	(247)
Reimbursements requested from FDIC (reclassification to FDIC receivable)	5,172	4,434	10,203	8,035
Decrease due to recoveries net of additional claimable expenses	(6,261)	(3,433)	(7,618)	(4,319)
Claim payments received from the FDIC	(1,357)	(1,878)	(3,120)	(4,054)
Balance at the end of the period	$ 5,543	$ 7,198	$ 5,543	$ 7,198

OTHER REAL ESTATE OWNED AND R76

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015
Changes in other real estate owned
Balance at the beginning of the period			$ 38,908,000	$ 29,955,000
Additions due to acquisitions			1,260,000	30,878,000
Additions due to adoption			540,000
Transfer from loans to other real estate owned			17,821,000	13,772,000
Disposals			(17,330,000)	(19,928,000)
Write-downs			(1,947,000)	(2,404,000)
Balance at the end of the period	$ 39,252,000	$ 52,273,000	39,252,000	52,273,000
Changes in repossessed assets
Other real estate owned and repossessed assets acquired in accordance with ASU 2014-04					$ 727,000
Real estate properties for which formal foreclosure proceedings are in process					9,600,000
Income and expenses related to other real estate owned
Net gain (loss) on sale	1,405,000	3,089,000	2,820,000	4,233,000
Write-downs	(585,000)	(1,358,000)	(1,947,000)	(2,404,000)
Net operating expenses	(713,000)	(1,001,000)	(1,008,000)	(1,619,000)
Total	107,000	730,000	(135,000)	210,000
Uncovered
Changes in other real estate owned
Balance at the beginning of the period			28,247,000	18,384,000
Additions due to acquisitions			1,260,000	30,878,000
Additions due to adoption			455,000
Transfer from loans to other real estate owned			12,151,000	8,826,000
Disposals			(9,777,000)	(15,241,000)
Write-downs			(1,311,000)	(1,500,000)
Balance at the end of the period	31,025,000	41,347,000	31,025,000	41,347,000
Income and expenses related to other real estate owned
Net gain (loss) on sale	1,315,000	2,998,000	3,173,000	4,002,000
Write-downs	(487,000)	(821,000)	(1,311,000)	(1,500,000)
Net operating expenses	(686,000)	(919,000)	(890,000)	(1,545,000)
Total	142,000	1,258,000	972,000	957,000
Covered
Changes in other real estate owned
Balance at the beginning of the period			10,661,000	11,571,000
Additions due to acquisitions			0	0
Additions due to adoption			85,000
Transfer from loans to other real estate owned			5,670,000	4,946,000
Disposals			(7,553,000)	(4,687,000)
Write-downs			(636,000)	(904,000)
Balance at the end of the period	8,227,000	10,926,000	8,227,000	10,926,000
Income and expenses related to other real estate owned
Net gain (loss) on sale	90,000	91,000	(353,000)	231,000
Write-downs	(98,000)	(537,000)	(636,000)	(904,000)
Net operating expenses	(27,000)	(82,000)	(118,000)	(74,000)
Total	(35,000)	(528,000)	(1,107,000)	(747,000)
Repossessed Assets
Changes in repossessed assets
Balance at the beginning of the period			9,835,000	27,000
Transfers in		237,000		237,000	847,000
Capitalized expenditures					2,681,000
Payments received					(2,854,000)
Disposals		(172,000)		(172,000)	(318,000)
Write-downs of repossessed assets			(468,000)	0
Change in valuation allowance					(2,602,000)
Balance at the end of the period	7,121,000	92,000	7,121,000	92,000
Repossessed assets valuation allowance reconciliation
Balance at the beginning of the period	2,819,000		460,000
Provision for valuation allowance	243,000		2,602,000
Balance at the end of the period	3,062,000	0	3,062,000	0
Repossessed assets valuation allowance	2,819,000	0	460,000	0	$ 3,062,000
Income and expenses related to repossessed assets
Net gain (loss) on sale	0	0	(14,000)	(4,000)
Write - downs of repossessed assets expense	(274,000)		(468,000)
Provision for valuation allowance	(243,000)		(2,602,000)
Net operating expenses	0	(19,000)	(25,000)	(49,000)
Total	$ (517,000)	$ (19,000)	$ (3,109,000)	$ (53,000)

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Net carrying amount of CDIs
Net carrying amount	$ 14,131		$ 14,131		$ 13,035
Amortization expense recognized			1,314	$ 1,460
FHC
Net carrying amount of CDIs
Increase in goodwill			$ 3,500
Core deposit
Intangible assets
Estimated remaining average useful life			7 years 1 month 6 days
Net carrying amount of CDIs
Gross carrying amount	23,068		$ 23,068		20,658
Accumulated amortization	(8,937)		(8,937)		(7,623)
Net carrying amount	14,131		14,131		$ 13,035
Amortization expense recognized	$ 665	$ 724	$ 1,300	$ 1,500

LOAN SERVICING RIGHTS (Details)

LOAN SERVICING RIGHTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Activity for loan servicing rights and the related fair value changes
Fair value, beginning of period	$ 54,409	$ 77,892	$ 70,598	$ 78,603
Additions due to acquisition				767
Additions from loans sold with servicing retained	2,933	2,159	5,848	3,748
Reduction from loans and servicing rights sold			(12,702)
Changes in fair value due to reductions from loans paid off during the period	(1,594)	(1,747)	(3,912)	(2,609)
Changes due to valuation inputs or assumptions	3,146	(4,200)	(938)	(6,405)
Fair value, end of period	58,894	74,104	58,894	74,104
Principal balance of loans serviced	6,023,880	7,385,936	6,023,880	7,385,936
Loan servicing rights sold			12,702	0
Principal balance of loans sold that are serviced			1,200,000
Commercial real estate
Activity for loan servicing rights and the related fair value changes
Fair value, beginning of period	621	1,079	691	368
Additions due to acquisition				767
Additions from loans sold with servicing retained	0	0	0	0
Reduction from loans and servicing rights sold			0
Changes in fair value due to reductions from loans paid off during the period	(24)	(11)	(53)	(68)
Changes due to valuation inputs or assumptions	(17)	(231)	(58)	(230)
Fair value, end of period	580	837	580	837
Principal balance of loans serviced	187,948	234,921	187,948	234,921
Agricultural
Activity for loan servicing rights and the related fair value changes
Fair value, beginning of period	0	894	0	962
Additions due to acquisition				0
Additions from loans sold with servicing retained	0	57	0	123
Reduction from loans and servicing rights sold			0
Changes in fair value due to reductions from loans paid off during the period	0	(68)	0	(137)
Changes due to valuation inputs or assumptions	0	(7)	0	(72)
Fair value, end of period	0	876	0	876
Principal balance of loans serviced	0	41,518	0	41,518
Mortgage
Activity for loan servicing rights and the related fair value changes
Fair value, beginning of period	53,788	75,919	69,907	77,273
Additions due to acquisition				0
Additions from loans sold with servicing retained	2,933	2,102	5,848	3,625
Reduction from loans and servicing rights sold			(12,702)
Changes in fair value due to reductions from loans paid off during the period	(1,570)	(1,668)	(3,859)	(2,404)
Changes due to valuation inputs or assumptions	3,163	(3,962)	(880)	(6,103)
Fair value, end of period	58,314	72,391	58,314	72,391
Principal balance of loans serviced	$ 5,835,932	$ 7,109,497	$ 5,835,932	$ 7,109,497

LOAN SERVICING RIGHTS (Details

LOAN SERVICING RIGHTS (Details 2) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value
Loan servicing fee income	$ 2,500,000	$ 3,700,000	$ 5,100,000	$ 7,300,000
Commercial Real Estate
Fair Value
WA discount rate (as a percent)			19.48%		19.48%
WA cost to service/per year			$ 470		$ 470
WA float range (as a percent)			0.56%		0.56%
Commercial Real Estate | Minimum
Fair Value
Prepayment speed (as a percent)			6.08%		6.41%
Commercial Real Estate | Maximum
Fair Value
Prepayment speed (as a percent)			50.00%		50.00%
Mortgage
Fair Value
WA discount rate (as a percent)			9.16%		9.14%
WA cost to service/per year			$ 61		$ 61
WA ancillary income/per year			$ 35		$ 35
Mortgage | Minimum
Fair Value
Prepayment speed (as a percent)			3.68%		3.63%
WA float range (as a percent)			1.19%		1.16%
Mortgage | Maximum
Fair Value
Prepayment speed (as a percent)			36.97%		40.07%
WA float range (as a percent)			1.69%		1.74%

DERIVATIVE INSTRUMENTS AND BA80

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amount of ineffective interest rate swaps included in net income	$ 0
Derivative instruments
Notional Amount	567,589,000	$ 320,001,000
Gross Derivative Assets	5,240,000	3,077,000
Gross Derivative Liabilities	2,004,000	2,502,000
Credit valuation adjustments for counterparty credit risk	66,000	103,000
Designated as hedges
Derivative instruments
Notional Amount	22,000,000	12,000,000
Gross Derivative Assets	337,000	0
Gross Derivative Liabilities	134,000	222,000
Designated as hedges | Interest rate swaps
Derivative instruments
Notional Amount	22,000,000	12,000,000
Gross Derivative Assets	337,000	0
Gross Derivative Liabilities	134,000	222,000
Not designated as hedging
Derivative instruments
Notional Amount	545,589,000	308,001,000
Gross Derivative Assets	4,903,000	3,077,000
Gross Derivative Liabilities	1,870,000	2,280,000
Not designated as hedging | Forward contracts related to mortgage loans to be delivered for sale
Derivative instruments
Notional Amount	196,416,000	114,828,000
Gross Derivative Assets	863,000	0
Gross Derivative Liabilities	0	803,000
Not designated as hedging | Interest rate lock commitments
Derivative instruments
Notional Amount	122,622,000	67,817,000
Gross Derivative Assets	2,029,000	1,489,000
Gross Derivative Liabilities	0	0
Not designated as hedging | Customer-initiated derivatives
Derivative instruments
Notional Amount	226,551,000	125,356,000
Gross Derivative Assets	2,011,000	1,588,000
Gross Derivative Liabilities	$ 1,870,000	$ 1,477,000

DERIVATIVE INSTRUMENTS AND BA81

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative instruments
Net gains (losses) relating to free-standing derivative instruments	$ 613	$ (5,635)	$ 1,715	$ (8,754)
Forward contracts related to mortgage loans to be delivered for sale | Net gain on sales of loans
Derivative instruments
Net gains (losses) relating to free-standing derivative instruments	2,355	(6,915)	1,211	(9,909)
Interest rate lock commitments | Net gain on sales of loans
Derivative instruments
Net gains (losses) relating to free-standing derivative instruments	(1,620)	1,274	542	1,136
Customer-initiated derivatives | Other noninterest income
Derivative instruments
Net gains (losses) relating to free-standing derivative instruments	$ (122)	$ 6	$ (38)	$ 19

DERIVATIVE INSTRUMENTS AND BA82

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 3) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative instruments
Amount of gain (loss) recognized in other non interest income (Ineffective portion)			$ 0
Interest rate swaps | Designated as hedges | Cash flow hedges
Derivative instruments
Amount of gain (loss) recognized in other comprehensive income (Effective portion)	$ 558,000	$ 0	233,000	$ 0
Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion)	(104,000)	0	(192,000)	0
Amount of gain (loss) recognized in other non interest income (Ineffective portion)	0	$ 0	0	$ 0
Amount of gain (loss) expected to be reclassified in the next twelve months	$ 363,000		$ 363,000

DERIVATIVE INSTRUMENTS AND BA83

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Offsetting derivative assets
Gross amounts recognized	$ 5,240	$ 3,077
Financial instruments		0
Offsetting derivative liabilities
Gross amounts recognized	2,004	2,502
Interest rate swaps and customer-initiated derivatives
Offsetting derivative assets
Gross amounts recognized	2,348	1,588
Financial instruments	0
Net amounts presented in the statement of financial position	2,348	1,588
Gross amounts not offset in the statement of financial position
Financial Instruments	(2,004)	(1,588)
Collateral (received)/posted	1,570	1,689
Net Amount	1,914	1,689
Offsetting derivative liabilities
Gross amounts recognized	2,004	1,699
Financial instruments	0	0
Net amounts presented in the statement of financial position	2,004	1,699
Gross amounts not offset in the statement of financial position
Financial Instruments	(2,004)	(1,588)
Collateral (received)/posted	0	111
Net Amount	$ 0	$ 0

COMMITMENTS, CONTINGENCIES AN84

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Allowance for credit losses on lending-related commitments	$ 617	$ 539
Contingencies and Guarantees
Total commitments	1,331,649	1,039,626
Fixed Rate
Contingencies and Guarantees
Total commitments	704,362	572,067
Variable Rate
Contingencies and Guarantees
Total commitments	627,287	467,559
Commitments to extend credit
Contingencies and Guarantees
Total commitments	1,265,895	966,124
Commitments to extend credit | Fixed Rate
Contingencies and Guarantees
Total commitments	642,049	502,762
Commitments to extend credit | Variable Rate
Contingencies and Guarantees
Total commitments	623,846	463,362
Standby letters of credit
Contingencies and Guarantees
Total commitments standby letters of credit	65,754	73,502
Standby letters of credit | Fixed Rate
Contingencies and Guarantees
Total commitments standby letters of credit	62,313	69,305
Standby letters of credit | Variable Rate
Contingencies and Guarantees
Total commitments standby letters of credit	$ 3,441	$ 4,197

COMMITMENTS, CONTINGENCIES AN85

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Contingencies and Guarantees
Warranty liabilities	$ 2,000	$ 4,000
Performance guarantee
Contingencies and Guarantees
Outstanding balance of loans	26,800	39,800
Maximum potential amount of undiscounted future payments	20,200	31,600
Recourse liability	170	355
Standby letters of credit
Contingencies and Guarantees
Standby letters of credit outstanding	$ 65,800	$ 73,500

SHORT-TERM BORROWINGS AND LON86

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 253,945		$ 253,945		$ 135,743
Amount, long-term debt	414,947		414,947		353,972
Amount, short-term borrowings and long-term debt	$ 668,892		$ 668,892		$ 489,715
Weighted Average Rate, short-term borrowings (as a percent)	0.60%		0.60%		0.26%
Weighted Average Rate, long-term debt (as a percent)	1.83%		1.83%		2.02%
Weighted Average Rate, short-term borrowings and long-term debt (as a percent)	1.36%		1.36%		1.53%
Short-term borrowings
Amortized Cost	$ 842,081		$ 842,081		$ 734,674
Draw on existing line of credit			$ 20,000
Number of warrants repurchased (in shares)			2.5
Aggregate purchase price			$ 19,892	$ 0
Mortgage-backed securities
Short-term borrowings
Blanket lien arrangement	1,200,000		1,200,000
Specific lien arrangement	903,400		903,400
Additional maximum borrowing capacity	808,500		808,500
Additional maximum borrowing capacity as limited by Board resolutions	440,300		440,300
Line of Credit
Short-term borrowings
Draw on existing line of credit			10,000
Securities sold under agreements to repurchase: 0.05%-0.10% variable-rate notes
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 23,945		$ 23,945		$ 25,743
Weighted Average Rate, short-term borrowings (as a percent)	0.10%		0.10%		0.10%
Securities sold under agreements to repurchase: 0.05%-0.10% variable-rate notes | Minimum
Short-term borrowings and long-term debt
Interest rate (as a percent)	0.05%		0.05%
Securities sold under agreements to repurchase: 0.05%-0.10% variable-rate notes | Maximum
Short-term borrowings and long-term debt
Interest rate (as a percent)	0.10%		0.10%
FHLB advances fixed-rate notes
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 200,000		$ 200,000		$ 100,000
Amount, long-term debt	$ 344,001		$ 344,001		$ 286,804
Weighted Average Rate, short-term borrowings (as a percent)	0.27%		0.27%		0.29%
Weighted Average Rate, long-term debt (as a percent)	1.40%		1.40%		1.57%
Advances payable	$ 338,500		$ 338,500		$ 280,100
Purchase accounting premiums	$ 5,500		$ 5,500		6,700
FHLB advances fixed-rate notes | Minimum
Short-term borrowings and long-term debt
Weighted Average Rate, short-term borrowings (as a percent)	0.24%		0.24%
Interest rate (as a percent)	0.26%		0.26%
FHLB advances fixed-rate notes | Maximum
Short-term borrowings and long-term debt
Weighted Average Rate, short-term borrowings (as a percent)	0.30%		0.30%
Interest rate (as a percent)	7.44%		7.44%
FHLB advances: 0.43% variable-rate notes
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 0		$ 0		$ 10,000
Weighted Average Rate, short-term borrowings (as a percent)	0.00%		0.00%		0.43%
Interest rate (as a percent)	0.43%		0.43%
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037
Short-term borrowings and long-term debt
Amount, long-term debt	$ 55,623		$ 55,623		$ 56,444
Weighted Average Rate, long-term debt (as a percent)	4.19%		4.19%		4.19%
Purchase accounting premiums	$ 5,600		$ 5,600		$ 6,400
Balance amount	50,000		50,000		50,000
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Mortgage-backed securities
Short-term borrowings
Amortized Cost	$ 83,700		$ 83,700
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Minimum
Short-term borrowings and long-term debt
Interest rate (as a percent)	4.11%		4.11%
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Maximum
Short-term borrowings and long-term debt
Interest rate (as a percent)	4.30%		4.30%
Subordinated notes related to trust preferred securities: Floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035
Short-term borrowings and long-term debt
Amount, long-term debt	$ 10,794		$ 10,794		$ 10,724
Weighted Average Rate, long-term debt (as a percent)	2.52%		2.52%		2.48%
Variable rate basis			three-month LIBOR
Balance amount	$ 15,000		$ 15,000		$ 15,000
Purchase accounting discounts	4,200		$ 4,200		4,300
Subordinated notes related to trust preferred securities: Floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 | Minimum
Short-term borrowings and long-term debt
Spread on variable rate (as a percent)			1.45%
Subordinated notes related to trust preferred securities: Floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 | Maximum
Short-term borrowings and long-term debt
Spread on variable rate (as a percent)			2.85%
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due September 2032 (5)
Short-term borrowings and long-term debt
Amount, long-term debt	$ 4,529		$ 4,529		$ 0
Weighted Average Rate, long-term debt (as a percent)	3.53%		3.53%		0.00%
Variable rate basis			three-month LIBOR
Spread on variable rate (as a percent)			3.25%
Balance amount	$ 5,000		$ 5,000
Purchase accounting discounts	471		471
Securities sold under agreement to repurchase
Short-term borrowings
Average daily balance	$ 19,390	$ 86,444	$ 19,911	$ 77,054
Average interest rate (as a percent)	0.10%	0.13%	0.10%	0.11%
Maximum month-end balance	$ 23,945	$ 148,826	$ 23,945	$ 148,826
FHLB advances:
Short-term borrowings
Average daily balance (FHLB)	$ 33,517	$ 38,806	$ 26,022	$ 19,634
Average interest rate - FHLB (as a percent)	0.27%	0.13%	0.27%	0.16%
Maximum month-end balance	$ 200,000	$ 90,000	$ 200,000	$ 90,000
Federal funds purchased
Short-term borrowings
Average daily balance	$ 0	$ 1,132	$ 696	$ 2,254
Average interest rate (as a percent)	0.00%	0.28%	0.31%	0.25%
Maximum month-end balance	$ 0	$ 0	$ 126,000	$ 0
FHLB overnight repurchase agreements:
Short-term borrowings
Average daily balance (FHLB)	$ 0	$ 0	$ 0	$ 4,420
Average interest rate - FHLB (as a percent)	0.00%	0.00%	0.00%	0.10%
Maximum month-end balance	$ 0	$ 0	$ 0	$ 0
FHLB collateralized advances for fixed rate notes:
Short-term borrowings
Amount of collateral for total borrowing capacity	2,100,000		2,100,000
Holding Company
Short-term borrowings and long-term debt
Amount, short-term borrowings	30,000		30,000		$ 0
Amount, long-term debt	15,322		15,322		10,724
Short-term borrowings
Aggregate purchase price			19,892	0
Holding Company | Line of Credit
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 30,000		$ 30,000		$ 0
Weighted Average Rate, short-term borrowings (as a percent)	3.19%		3.19%		0.00%
Variable rate basis			one-month Libor
Spread on variable rate (as a percent)			3.00%
Short-term borrowings
Average daily balance	$ 22,912	$ 0	$ 16,271	$ 11,215
Average interest rate (as a percent)	3.18%	0.00%	3.18%	3.17%
Maximum month-end balance	$ 30,000	$ 0	$ 30,000	$ 35,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Amount
Tax based on federal statutory rate	$ 9,004	$ 5,726	$ 13,860	$ 18,526
Effect of:
Tax exempt income	(644)	(475)	(1,275)	(1,202)
State taxes, net of federal benefit	194	201	460	469
Change in valuation allowance	0	(9,749)	0	(10,127)
Bargain purchase gain	0	0	0	(14,692)
Transaction costs	18	426	47	454
Other, net	(393)	(375)	(472)	670
Income tax expense (benefit)	$ 8,179	$ (4,246)	$ 12,620	$ (5,902)
Rate
Tax based on federal statutory rate (as a percent)	35.00%	35.00%	35.00%	35.00%
Effect of:
Tax exempt income (as a percent)	(2.60%)	(2.90%)	(3.20%)	(2.30%)
State taxes, net of federal benefit (as a percent)	0.80%	1.20%	1.20%	0.90%
Change in valuation allowance (as a percent)	0.00%	(59.60%)	0.00%	(19.10%)
Bargain purchase gain (as a percent)	(0.00%)	(0.00%)	(0.00%)	(27.90%)
Transaction costs (as a percent)	0.10%	2.60%	0.10%	0.90%
Other, net (as a percent)	(1.50%)	(2.30%)	(1.20%)	1.30%
Income tax expense (benefit) (as a percent)	31.80%	(26.00%)	31.90%	(11.20%)

STOCK-BASED COMPENSATION STOCK-

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock issued or issuable	9,800,000		9,800,000
Option shares available for grant	1,200,000		1,200,000
Granted (in shares)			0	35,000
Expected life (in years)			6 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period			10 years
Weighted average fair value (in dollars per share)			$ 15.74
Total intrinsic value of stock options exercised			$ 5,400,000
Cash received from exercise of options			$ 210,000
Shares issued on stock option exercises upon receipt of cash			35,000
Number of shares issued under the net-settlement option			210,000
Tax benefit realized from option exercises			$ 1,400,000
Total unrecognized compensation cost related to stock options	$ 0		0
Total compensation expense		$ 207,000		$ 387,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense	$ 515,000	67,000	$ 866,000	67,000
Awards outstanding (in shares)	711,000		711,000		378,000
Total unrecognized compensation cost	$ 9,200,000		$ 9,200,000
Weighted-average period over which unrecognized compensation cost is expected to be recognized			4 years 2 months 2 days
Employees | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			5 years
Director | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Salary and Employee Benefits | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense	441,000	50,000	$ 739,000	50,000
Professional Fee | Director | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense	$ 74,000	$ 17,000	$ 127,000	$ 17,000

STOCK-BASED COMPENSATION - Valu

STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - 6 months ended Jun. 30, 2015 - $ / shares	Total
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Fair value of options granted (in dollars per share)	$ 4.77
Expected dividend yield	0.00%
Expected volatility	30.02%
Risk-free interest rate	1.98%
Expected life (in years)	6 years

STOCK-BASED COMPENSATION - Opti

STOCK-BASED COMPENSATION - Option Activity (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Total
Number of Shares
Outstanding at the beginning of the period (in shares)	7,958
Exercised (in shares)	(599)
Outstanding at the end of the period (in shares)	7,359
Options fully vested and expected to vest (in shares)	7,359
Exercisable at the end of the period (in shares)	7,359
Weighted Average Exercise Price per Share
Outstanding at the beginning of the period (in dollars per share)	$ 6.96
Exercised (in dollars per share)	6.77
Outstanding at the end of the period (in dollars per share)	6.98
Options fully vested and expected to vest (in dollars per share)	6.98
Exercisable at the end of the period (in dollars per share)	$ 6.98
Weighted Average Remaining Contractual Life
Outstanding at the end of the period	6 years 2 months 19 days
Options fully vested and expected to vest	6 years 2 months 19 days
Exercisable at the end of the period	6 years 2 months 19 days
Aggregate Intrinsic Value
Outstanding at the end of the period	$ 71,894
Options fully vested and expected to vest	71,894
Exercisable at the end of the period	$ 71,894

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Activity (Details 2) - 6 months ended Jun. 30, 2015 - Restricted Stock - $ / shares shares in Thousands	Total
Shares
Nonvested at beginning of period (in shares)	378
Granted (in shares)	354
Vested (in shares)	(19)
Forfeited (in shares)	(2)
Nonvested at end of period (in shares)	711
Weighted-Average Grant-Date Fair Value
Nonvested at beginning of period (in dollars per share)	$ 14.44
Granted (in dollars per share)	14.98
Vested (in dollars per share)	14.44
Forfeited (in dollars per share)	14.44
Nonvested at end of period (in dollars per share)	$ 14.71

REGULATORY CAPITAL MATTERS (Det

REGULATORY CAPITAL MATTERS (Details) - USD ($)	Jul. 29, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
REGULATORY CAPITAL MATTERS
Capital conservation buffer		2.50%		2.50%
Capital conservation buffer, period				4 years
Total capital to risk-weighted assets
Actual Amount		$ 772,889,000		$ 772,889,000		$ 720,552,000
Actual Ratio		15.00%		15.00%		16.40%
For Capital Adequacy Purposes Amount		$ 412,749,000		$ 412,749,000		$ 350,645,000
For Capital Adequacy Purposes Ratio		8.00%		8.00%		8.00%
Common equity tier 1 capital
Actual Amount		$ 717,196,000		$ 717,196,000
Actual Ratio		13.90%		13.90%
For Capital Adequacy Purposes Amount		$ 232,171,000		$ 232,171,000
For Capital Adequacy Purposes Ratio		4.50%		4.50%
Tier 1 capital to risk-weighted assets
Actual Amount		$ 717,196,000		$ 717,196,000		$ 666,035,000
Actual Ratio		13.90%		13.90%		15.20%
For Capital Adequacy Purposes Amount		$ 309,561,000		$ 309,561,000		$ 175,323,000
For Capital Adequacy Purposes Ratio		6.00%		6.00%		4.00%
Tier 1 leverage ratio
Actual Amount		$ 717,196,000		$ 717,196,000		$ 666,035,000
Actual Ratio		11.50%		11.50%		11.60%
For Capital Adequacy Purposes Amount		$ 249,398,000		$ 249,398,000		$ 230,546,000
For Capital Adequacy Purposes Ratio		4.00%		4.00%		4.00%
Dividend income from subsidiary		$ 0	$ 0	$ 15,000,000	$ 25,000,000
Subsequent Event
Tier 1 leverage ratio
Dividend declared (in dollars per share)	$ 0.01
Talmer Bank and Trust
Total capital to risk-weighted assets
Actual Amount		$ 653,191,000		$ 653,191,000		$ 627,851,000
Actual Ratio		14.20%		14.20%		16.30%
For Capital Adequacy Purposes Amount		$ 368,064,000		$ 368,064,000		$ 308,374,000
For Capital Adequacy Purposes Ratio		8.00%		8.00%		8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount		$ 460,080,000		$ 460,080,000		$ 385,468,000
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio		10.00%		10.00%		10.00%
Common equity tier 1 capital
Actual Amount		$ 606,576,000		$ 606,576,000
Actual Ratio		13.20%		13.20%
For Capital Adequacy Purposes Amount		$ 207,036,000		$ 207,036,000
For Capital Adequacy Purposes Ratio		4.50%		4.50%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount		$ 299,052,000		$ 299,052,000
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio		6.50%		6.50%
Tier 1 capital to risk-weighted assets
Actual Amount		$ 606,576,000		$ 606,576,000		$ 579,604,000
Actual Ratio		13.20%		13.20%		15.00%
For Capital Adequacy Purposes Amount		$ 276,048,000		$ 276,048,000		$ 154,187,000
For Capital Adequacy Purposes Ratio		6.00%		6.00%		4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount		$ 368,064,000		$ 368,064,000		$ 231,281,000
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio		8.00%		8.00%		6.00%
Tier 1 leverage ratio
Actual Amount		$ 606,576,000		$ 606,576,000		$ 579,604,000
Actual Ratio		11.10%		11.10%		11.60%
For Capital Adequacy Purposes Amount		$ 217,889,000		$ 217,889,000		$ 200,128,000
For Capital Adequacy Purposes Ratio		4.00%		4.00%		4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount		$ 272,361,000		$ 272,361,000		$ 250,160,000
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio		5.00%		5.00%		5.00%
Talmer Bank and Trust | Minimum
Tier 1 leverage ratio
Surplus required for declaration or payment of dividend as a percentage of capital remaining after dividend payment		20.00%		20.00%
Talmer West Bank
Total capital to risk-weighted assets
Actual Amount		$ 136,659,000		$ 136,659,000		$ 101,926,000
Actual Ratio		24.80%		24.80%		19.60%
For Capital Adequacy Purposes Amount		$ 44,168,000		$ 44,168,000		$ 41,628,000
For Capital Adequacy Purposes Ratio		8.00%		8.00%		8.00%
Common equity tier 1 capital
Actual Amount		$ 129,474,000		$ 129,474,000
Actual Ratio		23.50%		23.50%
For Capital Adequacy Purposes Amount		$ 24,844,000		$ 24,844,000
For Capital Adequacy Purposes Ratio		4.50%		4.50%
Tier 1 capital to risk-weighted assets
Actual Amount		$ 129,474,000		$ 129,474,000		$ 95,656,000
Actual Ratio		23.50%		23.50%		18.40%
For Capital Adequacy Purposes Amount		$ 33,126,000		$ 33,126,000		$ 20,814,000
For Capital Adequacy Purposes Ratio		6.00%		6.00%		4.00%
Tier 1 leverage ratio
Actual Amount		$ 129,474,000		$ 129,474,000		$ 95,656,000
Actual Ratio		16.60%		16.60%		12.40%
For Capital Adequacy Purposes Amount		$ 31,213,000		$ 31,213,000		$ 30,786,000
For Capital Adequacy Purposes Ratio		4.00%		4.00%		4.00%
Talmer West Bank | Minimum
REGULATORY CAPITAL MATTERS
Total capital (to risk-weighted assets) ratio prescribed in the Consent Order		12.00%		12.00%
Tier 1 capital (to adjusted total assets) ratio prescribed in the Consent Order		9.00%		9.00%

PARENT COMPANY FINANCIAL STAT93

PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 410,558	$ 253,736	$ 402,601	$ 375,356
Income tax benefit	188,755	177,472
Other assets	43,173	40,982
Total assets	6,417,623	5,872,264
Liabilities
Short-term borrowings	253,945	135,743
Long-term debt	414,947	353,972
Total liabilities	5,651,217	5,110,657
Shareholders’ equity	766,406	761,607	727,945	617,015
Total liabilities and shareholders’ equity	6,417,623	5,872,264
Holding Company
Assets
Cash and cash equivalents	10,628	9,497	$ 17,497	$ 98,411
Investment in banking subsidiaries	792,467	756,452
Income tax benefit	8,429	7,975
Other assets	681	655
Total assets	812,205	774,579
Liabilities
Short-term borrowings	30,000	0
Long-term debt	15,322	10,724
Accrued expenses and other liabilities	477	2,248
Total liabilities	45,799	12,972
Shareholders’ equity	766,406	761,607
Total liabilities and shareholders’ equity	$ 812,205	$ 774,579

PARENT COMPANY FINANCIAL STAT94

PARENT COMPANY FINANCIAL STATEMENTS (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income
Dividend income from subsidiary	$ 0	$ 0	$ 15,000,000	$ 25,000,000
Bargain purchase gain	0	0	0	41,977,000
Other noninterest income	4,569,000	5,312,000	9,299,000	9,605,000
Expenses
Salaries and employee benefits	28,685,000	30,466,000	57,897,000	66,317,000
Professional service fees	3,275,000	2,628,000	6,818,000	6,665,000
Insurance expense	1,527,000	868,000	3,057,000	2,699,000
Marketing expense	1,483,000	1,605,000	2,578,000	2,696,000
Interest on short-term borrowings	209,000	33,000	288,000	208,000
Interest on long-term debt	914,000	627,000	1,714,000	1,201,000
Other	6,725,000	6,370,000	15,125,000	14,129,000
Income tax benefit	(8,179,000)	4,246,000	(12,620,000)	5,902,000
Net income	17,548,000	20,606,000	26,981,000	58,833,000
Total comprehensive income, net of tax	13,144,000	25,254,000	25,367,000	69,062,000
Holding Company
Income
Dividend income from subsidiary	0	0	15,000,000	25,000,000
Bargain purchase gain	0	0	0	41,977,000
Other noninterest income	4,000	3,000	9,000	5,000
Total income	4,000	3,000	15,009,000	66,982,000
Expenses
Salaries and employee benefits	1,671,000	2,042,000	2,892,000	5,955,000
Bank acquisition and due diligence fees	159,000	266,000	1,155,000	1,974,000
Professional service fees	491,000	492,000	868,000	1,086,000
Insurance expense	33,000	213,000	113,000	367,000
Marketing expense	35,000	26,000	49,000	191,000
Interest on short-term borrowings	187,000	0	261,000	151,000
Interest on long-term debt	182,000	125,000	344,000	252,000
Other	59,000	80,000	173,000	147,000
Total expenses	2,817,000	3,244,000	5,855,000	10,123,000
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries	(2,813,000)	(3,241,000)	9,154,000	56,859,000
Income tax benefit	1,082,000	420,000	1,735,000	2,457,000
Equity in (over)/under distributed earnings of subsidiaries	19,279,000	23,427,000	16,092,000	(483,000)
Net income	17,548,000	20,606,000	26,981,000	58,833,000
Total comprehensive income, net of tax	$ 17,548,000	$ 20,606,000	$ 26,981,000	$ 58,833,000

PARENT COMPANY FINANCIAL STAT95

PARENT COMPANY FINANCIAL STATEMENTS (Details 3) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net income	$ 17,548	$ 20,606	$ 26,981	$ 58,833
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on acquisition	0	0	0	(41,977)
Stock-based compensation expense			866	454
Decrease in other assets, net			2,399	(21,146)
Decrease in other assets, net			(1,286)	17,037
Net cash from operating activities			22,628	31,928
Cash flows from investing activities
Net cash used in investing activities			(168,220)	(118,299)
Cash flows from financing activities
Issuance of common stock			(127)	41,414
Repurchase of warrants to repurchase 2.5 million shares, at fair value			(19,892)	0
Cash dividends paid on common stock			(1,415)	0
Repayment of senior unsecured line of credit			0	(35,000)
Repayment of long-term debt			(3,500)	0
Net cash from financing activities			302,414	113,616
Net increase (decrease) in cash and cash equivalents			156,822	27,245
Beginning cash and cash equivalents			253,736	375,356
Ending cash and cash equivalents	410,558	402,601	$ 410,558	402,601
Number of shares repurchased			2.5
Cash dividends declared on common stock (in dollars per share)			$ 0.02
Holding Company
Cash flows from operating activities
Net income	17,548	20,606	$ 26,981	58,833
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in over (under) distributed earnings of subsidiaries			(16,092)	483
Gain on acquisition	0	0	0	(41,977)
Stock-based compensation expense			371	248
(Increase) decrease in income tax benefit			(71)	139
Decrease in other assets, net			168	629
Decrease in other assets, net			(4,194)	317
Net cash from operating activities			7,163	18,672
Cash flows from investing activities
Cash (used in) proceeds from acquisitions			(13,323)	(6,500)
Capital contributions to subsidiaries			0	(99,500)
Refund of investment			2,225	0
Net cash used in investing activities			(11,098)	(106,000)
Cash flows from financing activities
Issuance of common stock			0	42,075
Excess Tax Benefit from Share-based Compensation, Financing Activities			16	0
Exercise of stock options, including tax benefit			(143)	(661)
Repurchase of warrants to repurchase 2.5 million shares, at fair value			(19,892)	0
Cash dividends paid on common stock			(1,415)	0
Draw on senior unsecured line of credit			30,000	0
Repayment of senior unsecured line of credit			0	(35,000)
Repayment of long-term debt			(3,500)	0
Net cash from financing activities			5,066	6,414
Net increase (decrease) in cash and cash equivalents			1,131	(80,914)
Beginning cash and cash equivalents			9,497	98,411
Ending cash and cash equivalents	$ 10,628	$ 17,497	$ 10,628	$ 17,497
Number of shares repurchased			2.5
Cash dividends declared on common stock (in dollars per share)			$ 0.02

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator for basic and diluted EPS:
Net income	$ 17,548	$ 20,606	$ 26,981	$ 58,833
Net income allocated to participating securities	174	26	211	37
Net income allocated to shareholders	$ 17,374	$ 20,580	$ 26,770	$ 58,796
Weighted average common shares - issued (in shares)	71,006,000	70,107,000	70,814,000	69,115,000
Average unvested restricted share awards (in shares)	(705,000)	(86,000)	(555,000)	(44,000)
Weighted average common shares outstanding - basic (in shares)	70,301,000	70,021,000	70,259,000	69,071,000
Effect of dilutive securities -
Employee and director stock options (in shares)	4,339,000	4,112,000	4,174,000	3,991,000
Warrants (in shares)	260,000	1,526,000	613,000	1,469,000
Weighted average common shares outstanding - diluted (in shares)	74,900,000	75,659,000	75,046,000	74,531,000
EPS available to common shareholders
Basic (in dollars per share)	$ 0.25	$ 0.29	$ 0.38	$ 0.85
Diluted (in dollars per share)	0.23	0.27	0.36	0.79
Other information on EPS
Average stock valuation (in dollars per share)	$ 16.14	$ 13.77	$ 15.12	$ 13.24
Options
Other information on EPS
Shares not included in the computation of diluted net income available to common shareholders (shares)		8,000		4,000
Range of exercise prices, lower range limit (in dollars per share)		$ 14.44		$ 14.44
Range of exercise prices, upper range limit (in dollars per share)		$ 14.44		$ 14.44
Warrants repurchase
Other information on EPS
Shares not included in the computation of diluted net income available to common shareholders (shares)	0	0	0	0

ACCUMULATED OTHER COMPREHENSI97

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at the beginning of the period	$ 6,640	$ (2,415)	$ 3,850	$ (7,996)
Other comprehensive income (loss) before reclassifications	(4,469)	4,648	(1,805)	8,728
Amounts reclassified from accumulated other comprehensive income	65	0	191	1,501
Net current period other comprehensive income (loss)	(4,404)	4,648	(1,614)	10,229
Balance at the end of the period	2,236	2,233	2,236	2,233
Net gain (loss) on sales of securities	6	0	(101)	(2,310)
Income tax benefit with the reclassification adjustments related to available-for-sale securities	3	0	35	809
Other brokered funds included in total interest expense	104		192
Income tax benefit associated with the reclassification adjustments related to cash flow hedges	36		67
Unrealized gains (losses) on securities available-for-sale, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at the beginning of the period	6,939	(2,415)	3,995	(7,996)
Other comprehensive income (loss) before reclassifications	(4,831)	4,648	(1,956)	8,728
Amounts reclassified from accumulated other comprehensive income	(3)	0	66	1,501
Net current period other comprehensive income (loss)	(4,834)	4,648	(1,890)	10,229
Balance at the end of the period	2,105	2,233	2,105	2,233
Unrealized gains (losses) on cash flow hedges, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at the beginning of the period	(299)	0	(145)	0
Other comprehensive income (loss) before reclassifications	362	0	151	0
Amounts reclassified from accumulated other comprehensive income	68	0	125	0
Net current period other comprehensive income (loss)	430	0	276	0
Balance at the end of the period	$ 131	$ 0	$ 131	$ 0