Talmer Bancorp (TLMR) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 04, 2016
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	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		67,086,519
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks		$ 88,727	$ 74,734
Interest-bearing deposits with other banks		146,406	137,589
Federal funds sold and other short-term investments		128,682	175,000
Total cash and cash equivalents		363,815	387,323
Securities available-for-sale		946,543	890,770
Federal Home Loan Bank stock		29,621	29,621
Loans held for sale, at fair value		25,040	58,223
Loans:
Total loans		4,923,736	4,806,700
Less: Allowance for loan losses		(52,378)	(53,953)
Net total loans		4,871,358	4,752,747
Premises and equipment		42,446	43,570
Other real estate owned and repossessed assets		26,536	28,259
Loan servicing rights		51,348	58,113
Core deposit intangible		12,196	12,808
Goodwill		3,524	3,524
Company-owned life insurance		108,958	107,065
Income tax benefit		173,596	177,183
Other assets		58,708	46,684
Total assets		6,713,689	6,595,890
Deposits:
Noninterest-bearing demand deposits		1,040,950	1,011,414
Interest-bearing demand deposits		896,179	849,599
Money market and savings deposits		1,274,534	1,314,909
Time deposits		1,719,111	1,609,895
Other brokered funds		222,024	228,764
Total deposits		5,152,798	5,014,581
Short-term borrowings		334,480	348,998
Long-term debt		399,476	464,057
Other liabilities		78,265	43,039
Total liabilities		$ 5,965,019	$ 5,870,675
Commitments and Contingencies	[1]
Shareholders’ equity
Preferred stock - $1.00 par value Authorized - 20,000,000 shares at 9/30/2015 and 12/31/2014 Issued and outstanding - 0 shares at 9/30/2015 and 12/31/2014		$ 0	$ 0
Common stock:
Additional paid-in-capital		319,207	316,571
Retained earnings		355,493	339,130
Accumulated other comprehensive income, net of tax		7,126	3,399
Total shareholders' equity		748,670	725,215
Total liabilities and shareholders’ equity		6,713,689	6,595,890
Class A Voting Common Stock
Common stock:
Common Stock		66,844	66,115
Class B Non-Voting Common Stock
Common stock:
Common Stock		0	0
Commercial real estate
Loans:
Total loans		1,616,801	1,568,097
Less: Allowance for loan losses		(17,904)	(19,418)
Residential real estate
Loans:
Total loans	[2]	1,604,940	1,547,799
Less: Allowance for loan losses		(13,542)	(14,432)
Commercial and industrial
Loans:
Total loans		1,279,402	1,257,406
Less: Allowance for loan losses		(17,580)	(16,318)
Real estate construction
Loans:
Total loans		235,007	241,603
Less: Allowance for loan losses		(2,275)	(2,699)
Consumer
Loans:
Total loans		187,586	191,795
Less: Allowance for loan losses		$ (1,077)	$ (1,086)
[1]	See Note 11.
[2]	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 Thousands	Mar. 31, 2016	Dec. 31, 2015
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)	$ 24,377	$ 22,200
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	66,844,244	66,114,798
Common stock, outstanding shares	66,844,244	66,114,798
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
	Mar. 31, 2016	Mar. 31, 2015
Interest income
Interest and fees on loans	$ 56,360	$ 59,938
Interest on investments
Taxable	3,240	2,323
Tax-exempt	1,991	1,615
Total interest on securities	5,231	3,938
Interest on interest-earning cash balances	184	86
Interest on federal funds and other short-term investments	468	165
Dividends on FHLB stock	312	245
FDIC indemnification asset	0	(9,250)
Total interest income	62,555	55,122
Interest Expense
Interest-bearing demand deposits	401	290
Money market and savings deposits	667	471
Time deposits	3,114	1,827
Other brokered funds	618	623
Interest on short-term borrowings	657	79
Interest on long-term debt	1,000	800
Total interest expense	6,457	4,090
Net interest income	56,098	51,032
Provision (benefit) for loan losses	(1,111)	1,993
Net interest income after provision for loan losses	57,209	49,039
Noninterest income
Deposit fee income	2,397	2,320
Mortgage Banking and other loan fees	(3,880)	(1,261)
Net gain on sales of loans	5,238	8,618
Accelerated discount on acquired loans	5,052	8,198
Net gain (loss) on sales of securities	333	(107)
Company-owned life insurance	750	740
FDIC loss share income	0	(1,068)
Other income	3,734	3,990
Total noninterest income	13,624	21,430
Noninterest expense
Salary and employee benefits	25,813	29,212
Occupancy and equipment expense	6,007	7,666
Data processing fees	1,743	1,854
Professional service fees	3,290	3,543
Merger and acquisition expense	2,874	1,412
Marketing expense	1,529	1,095
Other employee expense	808	934
Insurance expense	1,550	1,530
FDIC loss share expense	0	949
Other expense	4,656	8,400
Total noninterest expense	48,270	56,595
Income before income taxes	22,563	13,874
Income tax provision	2,880	4,441
Net income	$ 19,683	$ 9,433
Earnings per common share:
Basic (in dollars per share)	$ 0.30	$ 0.13
Diluted (in dollars per share)	$ 0.28	$ 0.12
Average common shares outstanding - basic (in shares)	65,636	70,216
Average common shares outstanding - diluted (in shares)	69,706	75,103
Cash dividends declared on common stock	$ 3,320	$ 706
Cash dividends declared per common share (in dollars per share)	$ 0.05	$ 0.01

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 19,683	$ 9,433
Other comprehensive income:
Unrealized holding gains on securities available-for-sale arising during the period	7,599	4,423
Reclassification adjustment for (gains) losses on realized income	(333)	107
Tax effect	(2,543)	(1,586)
Net unrealized gains on securities available-for-sale, net of tax	4,723	2,944
Unrealized losses on interest rate swaps designated as cash flow hedges	(1,681)	(325)
Reclassification adjustment for losses included in net income	148	88
Tax effect	537	83
Net unrealized losses on interest rate swaps designated as cash flow hedges, net of tax	(996)	(154)
Other comprehensive income, net of tax	3,727	2,790
Total comprehensive income, net of tax	$ 23,410	$ 12,223

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)
Beginning 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	9,433			9,433
Other comprehensive income	2,790				2,790
Stock-based compensation expense	351		351
Restricted stock awards, including tax benefit	0	$ 325	(325)
Restricted stock awards (in shares)		325
Issuance of common shares, including tax benefit	266	$ 81	185
Issuance of common shares (in shares)		81
Repurchase of warrants to purchase 2.5 million shares, at fair value	19,892		(19,892)
Cash dividends paid on common stock	(706)			(706)
Ending balance at Mar. 31, 2015	753,849	$ 70,938	385,755	290,516	6,640
Balance (in shares) at Mar. 31, 2015		70,938
Beginning balance at Dec. 31, 2015	725,215	$ 66,115	316,571	339,130	3,399
Balance (in shares) at Dec. 31, 2015		66,115
Increase (Decrease) in Stockholders' Equity
Net income	19,683			19,683
Other comprehensive income	3,727				3,727
Stock-based compensation expense	698		698
Restricted stock awards, including tax benefit	0	$ 324	(324)
Restricted stock awards (in shares)		324
Issuance of common shares, including tax benefit	2,667	$ 405	2,262
Issuance of common shares (in shares)		405
Cash dividends paid on common stock	(3,320)			(3,320)
Ending balance at Mar. 31, 2016	$ 748,670	$ 66,844	$ 319,207	$ 355,493	$ 7,126
Balance (in shares) at Mar. 31, 2016		66,844

Consolidated Statements of Cha7

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares shares in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Stockholders' Equity [Abstract]
Dividend paid (in dollars per share)	$ 0.05	$ 0.01
Common Stock
Repurchase of 2.5 million warrants, at fair value (in shares)	0	2.5

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income	$ 19,683	$ 9,433
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,574	1,909
Amortization of core deposit intangibles	612	649
Stock-based compensation expense	698	351
Provision (benefit) for loan losses	(1,111)	1,993
Originations of loans held for sale	(114,584)	(293,643)
Proceeds from sales of loans	150,640	325,939
Net gain from sales of loans	(5,238)	(8,618)
Net (gain) loss on sales of securities	(333)	107
Valuation allowance and writedowns on other real estate and other repossessed assets	1,195	3,915
Valuation change in Company-owned life insurance	(779)	(832)
Valuation change in loan servicing rights	8,465	6,402
Additions to loan servicing rights	(1,700)	(2,915)
Net decrease in FDIC indemnification asset and receivable other than payments received	0	12,784
Net gain on sales of other real estate owned and repossessed assets	(1,491)	(1,401)
Net increase in accrued interest receivable and other assets	(5,985)	(1,099)
Net increase (decrease) in accrued expenses and other liabilities	33,693	(7,674)
Net securities premium amortization	2,048	1,661
Deferred income tax benefit	(4,188)	(5,315)
Change in valuation allowance of deferred income tax asset	(270)	0
Other, net	(475)	(13)
Net cash from operating activities	82,454	43,633
Cash flows from investing activities
Net increase in loans	(114,083)	(38,238)
Purchases of loans	(10,162)	(30,793)
Purchases of securities available-for-sale	(109,359)	(30,928)
New investments in Company-owned life insurance	(1,114)	(591)
Purchases of premises and equipment	(450)	(1,130)
Payments received from FDIC under loss sharing agreements	0	1,763
Proceeds from:
Maturities and redemptions of securities available-for-sale	44,160	53,523
Redemption of FHLB Stock	0	342
Sale of securities available-for-sale	14,977	24,615
Sale of loan servicing rights	0	12,702
Sale of loans	5,581	0
Sale of other real estate owned and repossessed assets	6,023	10,929
Sale of premises and equipment	0	1,145
Net cash provided from acquisition	0	810
Net cash used in investing activities	(164,427)	4,149
Cash flows from financing activities
Net increase in deposits	138,217	28,258
Draw on senior unsecured line of credit	7,500	20,000
Net increase in (repayment of) short-term borrowings	(22,018)	61,004
Issuances of long-term FHLB advances	0	100,000
Repayments of long-term FHLB advances	(63,700)	(35)
Repayments on long-term sweep repurchase agreements	(412)	(411)
Repayments of subordinated debt	0	(3,500)
Other changes in long-term debt	(469)	(619)
Repurchase of warrants to repurchase 2.5 million shares, at fair value	0	(19,892)
Issuance of common stock and restricted stock awards, including tax benefit	2,667	266
Cash dividends paid on common stock ($0.05 and $0.01 per share, respectively)	(3,320)	(706)
Net cash from financing activities	58,465	184,365
Net increase (decrease) in cash and cash equivalents	(23,508)	232,147
Beginning cash and cash equivalents	387,323	253,736
Ending cash and cash equivalents	363,815	485,883
Supplemental disclosure of cash flow information:
Interest paid	6,717	4,038
Income taxes paid	(172)	5,662
Transfer from mortgage loans to other real estate owned and repossessed assets	4,134	6,191
Net transfer of loans held for sale to loans held for investment	(1,834)	(3,219)
Transfer from premises and equipment to other real estate owned	0	455
Increase in assets and liabilities of acquisitions:
Securities	0	34,022
FHLB stock	0	874
Uncovered loans	0	162,265
Premises and equipment	0	2,077
Company-owned life insurance	0	4,719
Other real estate owned and repossessed assets	0	1,260
Core deposit intangible	0	2,410
Other assets	0	6,462
Deposits	0	201,453
Long-term debt	0	13,086
Other liabilities	$ 0	$ 3,884

Consolidated Statements of Cas9

Consolidated Statements of Cash Flows (Parenthetical) - $ / shares shares in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash dividends declared on common stock (in dollars per share)	$ 0.05	$ 0.01
Common Stock
Number of shares repurchased (in share)	0	2.5

BASIS OF PRESENTATION AND RECEN

BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS	3 Months Ended
	Mar. 31, 2016
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 subsidiary 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, 2015 . 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 the Company's financial statements. In May 2014, the Financial Accounting Standards Board ("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. 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 GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. In March 2016, the FASB issued ASU 2016-08, " Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ", ("ASU 2016-08"), which further clarifies ASU 2014-09 by providing implementation guidance on principal versus agent considerations. ASU 2016-08 does not change the core principal of ASU 2014-09, but is intended to improve the operations and understanding of principal versus agent considerations. In August 2015, the FASB issued ASU 2015-14, " Deferral of the Effective Date" ("ASU 2015-14"), which provides a one year deferral to 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. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities ” (“ASU 2016-01”), which amends the accounting guidance related to the classification and measurement of financial instruments. While ASU 2016-01 retains many current requirements, it revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 requires entities to carry investments in equity securities at fair value through net income, with exceptions for investments that qualify for the equity method of accounting, investments resulting in investee consolidation, or investments in which the practicability exception to fair value measurement has been elected. The ASU also provides a new requirement to separately present in other comprehensive income the fair value change of instrument-specific credit risk, with exceptions to derivative liabilities which will continue to be presented in net income. ASU 2016-01 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. As such, the Company will adopt ASU 2016-01 as of January 1, 2018. Under the provision, the Company will be required to make a cumulative-effect adjustment to retained earnings as of the beginning of the year in which the guidance is effective. Exceptions exist for equity securities without readily determinable fair values and the use of the exit price to measure fair value for disclosure purposes, which will both be applied prospectively as of the date of adoption. The Company is currently evaluating the provisions of ASU 2016-01. In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), which improves the lease recognition process and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing agreements. In addition, the ASU defines a lease and simplifies a number of the requirements provided in the current lease model. ASU 2016-02 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As such, the Company will adopt ASU 2016-02 as of January 1, 2019. Under the provision, the Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the provisions of ASU 2016-02. In March 2016, the FASB issued ASU 2016-09, " Improvements to Employee Share-Based Payment Accounting " ("ASU 2016-09"), which simplifies the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. ASU 2016-09 is effective for public companies for annual periods, and interim periods within those annual periods beginning after December 15, 2016. As such, the Company will adopt ASU 2016-09 as of January 1, 2017. Under the provision, the Company is required to use varying transition methods for different amendments. Amendments relative to the timing of the recognition of excess tax benefits, minimum statutory withholding requirements and forfeitures should be applied using a modified retrospective transition method as a cumulative-effect adjustment to retained earnings as of the date of adoption, while amendments that require excess tax benefits and tax deficiencies on the income statement should be applied prospectively. Amendments regarding the presentation of taxes paid on the statement of cash flows should be applied retrospectively, while entities may elect to apply amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective or retrospective transition method. The Company is currently evaluating the provision of ASU 2016-09. Pending Merger: On January 26, 2016, the boards of directors of Chemical Financial Corporation (Nasdaq: CHFC), the holding company for Chemical Bank, and the Company announced the execution of a definitive agreement for Chemical Financial Corporation to partner with the Company in a cash and common stock merger transaction. Under the terms of the agreements, the Company will be merged with and into Chemical Financial Corporation, with Chemical Financial Corporation as the surviving corporation. The completion of the merger is subject to receipt of regulatory approvals and satisfaction of other customary closing conditions, including approval of both Chemical Financial Corporation's and the Company's shareholders.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONS The Company has determined that the acquisition of First of Huron Corp. (“FHC”), and its subsidiary bank, Signature Bank, constitutes a business combination 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 the Company, with the Company as the surviving entity 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 ("Talmer Bank"), with Talmer Bank 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 $1.0 million of acquisition related expenses during the three months ended March 31, 2015, related to the acquisition of FHC, included within “Merger and acquisition expense” in the Consolidated Statements of Income. The Company recorded $4.8 million in net deferred tax assets related to the 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 as presented in the following table. (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 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 purchased credit impaired loans 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. Under ASC 310-30, interest income is recognized on purchased credit impaired loans through accretion of the difference between the carrying value of the loans and the expected cash flows. 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.

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2016
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 recorded at fair value into a three-level hierarchy based on the markets in which the assets and liabilities 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 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 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 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 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. Level 3 included an obligation of a political subdivision as of March 31, 2016 and December 31, 2015 , representative of a security in less liquid markets requiring significant management assumptions when determining fair value. The fair value of this investment security represents less than one percent of the total available-for-sale securities at both March 31, 2016 and December 31, 2015 . The fair value of the political subdivision obligation has been determined to be equal to the carrying cost since the securities were acquired. The issuer has continued to pay their obligation without fail and the Company has not received any information to question future payments. Since the purchase of this security, 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. As of March 31, 2016 , there was no premises and equipment considered impaired. Impaired premises and equipment at December 31, 2015 was recorded at fair value based on a recent appraisal through a valuation allowance. The Company classifies impaired premises and equipment as nonrecurring Level 3. Other real estate owned and repossessed assets : Other real estate owned and repossessed assets represent 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 9, “Loan Servicing Rights”, for assumptions included in the valuation of loan servicing rights. Company-owned life insurance and deferred compensation plan liabilities: The life insurance policies are held 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 March 31, 2016 and December 31, 2015 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. 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. 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) March 31, 2016 Securities available-for-sale: U.S. government sponsored agency obligations $ 69,951 $ — $ 69,951 $ — Obligations of state and political subdivisions: Taxable 1,362 — 1,044 318 Tax-exempt 304,331 — 304,331 — Small Business Administration (“SBA”) Pools 26,729 — 26,729 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 309,692 — 309,692 — Privately issued 97,451 — 97,451 — Privately issued commercial mortgage-backed securities 22,384 — 22,384 — Corporate debt securities 114,643 — 114,643 — Total securities available-for-sale 946,543 — 946,225 318 Loans measured at fair value: Residential real estate 24,377 — — 24,377 Loans held for sale 25,040 — 25,040 — Loan servicing rights 51,348 — — 51,348 Derivative assets: Interest rate lock commitments 2,908 — 2,908 — Customer-initiated derivatives 9,761 — 9,761 — Total derivatives 12,669 — 12,669 — Total assets at fair value $ 1,059,977 $ — $ 983,934 $ 76,043 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 610 — 610 — Customer-initiated derivatives 9,998 — 9,998 — Risk management derivatives 1,825 — 1,825 — Total derivatives 12,433 — 12,433 — Total liabilities at fair value $ 12,433 $ — $ 12,433 $ — December 31, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 60,022 $ — $ 60,022 $ — Obligations of state and political subdivisions: Taxable 1,321 — 1,003 318 Tax-exempt 287,208 — 287,208 — SBA Pools 27,925 — 27,925 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 309,306 — 309,306 — Privately issued 89,450 — 89,450 — Privately issued commercial mortgage-backed securities 13,705 — 13,705 — Corporate debt securities 101,833 — 101,833 — Total securities available-for-sale 890,770 — 890,452 318 Loans measured at fair value: Residential real estate 22,233 — — 22,233 Loans held for sale 58,223 — 58,223 — Loan servicing rights 58,113 — — 58,113 Derivative assets: Interest rate lock commitments 1,220 — 1,220 — Customer-initiated derivatives 4,143 — 4,143 — Risk management derivatives 105 — 105 — Total derivatives 5,468 — 5,468 — Total assets at fair value $ 1,034,807 $ — $ 954,143 $ 80,664 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 38 — 38 — Customer-initiated derivatives 4,144 — 4,144 — Risk management derivatives 397 — 397 — Total derivatives 4,579 — 4,579 — Total liabilities at fair value $ 4,579 $ — $ 4,579 $ — There were no transfers between levels within the fair value hierarchy during the three months ended March 31, 2016 . During the three months ended March 31, 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. The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis. Three months ended March 31, 2016 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Loans held for investment Loan servicing rights Balance, beginning of period $ 318 $ 22,233 $ 58,113 Transfers from loans held for sale — 1,834 — Gains (losses): Recorded in earnings (realized): Recorded in “Net gain on sales of loans” — 82 — Recorded in “Mortgage banking and other loan fees” — 523 (8,465 ) New originations — — 1,700 Repayments — (295 ) — Balance, end of period $ 318 $ 24,377 $ 51,348 Three months ended March 31, 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 $ 3,425 $ 19,526 $ 70,598 Transfer between levels within fair value hierarchy — (3,000 ) — — Transfers from loans held for sale — — 3,219 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” — 1 — — Recorded in “Net gain on sales of loans” — — 127 — Recorded in “Mortgage banking and other loan fees” — — 108 (6,402 ) Recorded in OCI (pre-tax) — 4 — — New originations — — — 2,915 Reduction from servicing rights sold — — — (12,702 ) Repayments — — (822 ) — Balance, end of period $ 397 $ 430 $ 22,158 $ 54,409 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) March 31, 2016 December 31, 2015 Aggregate fair value $ 24,377 $ 22,233 Contractual balance 23,449 21,910 Fair market value gain 928 323 There were no gains (losses) included in the aggregate fair value above that were associated with instrument specific credit risk. 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 March 31, 2016 was $152 thousand and $156 thousand , respectively, all of which were on nonaccrual status. 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, 2015 was $275 thousand and $364 thousand, respectively, all of which were on nonaccrual status. 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 March 31, 2016 and 2015 , there were $222 thousand and $205 thousand, 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 (Dollars in thousands) 2016 2015 Change in fair value: Included in “Net gain on sales of loans” $ 82 $ 127 Included in “Mortgage banking and other loan fees” 523 108 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's policy on loans held for investment in “Interest and fees on loans” in the Consolidated Statements of Income. There were no loans held for sale that were 90 days past due and on accrual status as of March 31, 2016 . The aggregated fair value of loans held for sale that were 90 days past due and on nonaccrual status as of December 31, 2015 was $7 thousand . 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) March 31, 2016 December 31, 2015 Aggregate fair value $ 25,040 $ 58,223 Contractual balance 23,880 55,911 Unrealized gain 1,160 2,312 The total amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income were as follows: For the three months ended (Dollars in thousands) 2016 2015 Interest income(1) $ 329 $ 1,070 Change in fair value(2) (1,152 ) (1,541 ) Total included in earnings $ (823 ) $ (471 ) (1) Included in "Interest and fees on loans" in the Consolidated Statements of Income. (2) Included in "Net gain on sales of loans" in the Consolidated Statements of Income. 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) March 31, 2016 Impaired loans:(1) Commercial real estate $ 395 $ — $ — $ 395 Residential real estate 3,156 — — 3,156 Commercial and industrial 10,136 — — 10,136 Real estate construction 80 — — 80 Consumer 42 — — 42 Total impaired loans 13,809 — — 13,809 Other real estate owned(2) 2,323 — — 2,323 Repossessed assets(3) 5,238 — — 5,238 Total $ 21,370 $ — $ — $ 21,370 December 31, 2015 Impaired loans:(1) Commercial real estate $ 2,960 $ — $ — $ 2,960 Residential real estate 5,381 — — 5,381 Commercial and industrial 11,522 — — 11,522 Real estate construction 195 — — 195 Consumer 18 — — 18 Total impaired loans 20,076 — — 20,076 Other real estate owned(2) 4,562 — — 4,562 Repossessed assets(3) 5,038 — — 5,038 Premises and equipment(4) 1,575 — — 1,575 Total $ 31,251 $ — $ — $ 31,251 (1) Specific reserves of $3.0 million and $4.4 million were provided to reduce the fair value of these loans at March 31, 2016 and December 31, 2015 , respectively, based on the estimated fair value of the underlying collateral. In addition, net charge-offs of $93 thousand and $67 thousand reduced the fair value of these loans for the three months ended March 31, 2016 and 2015 , respectively. (2) The Company charged $884 thousand and $1.4 million through other noninterest expense during the three months ended March 31, 2016 and 2015 , respectively, to reduce the fair value of these properties. There was no valuation allowance and $325 thousand of valuation allowance provided to reduce the fair value of these properties at March 31, 2016 and December 31, 2015 , respectively, based on the estimated fair value as of each respective date. (3) The Company charged $311 thousand and $194 thousand through other noninterest expense during the three months ended March 31, 2016 and 2015 to reduce the fair value of these assets. A valuation allowance of $5.1 million was provided to reduce the fair value of these repossessed assets at both March 31, 2016 and December 31, 2015 , based on the estimated fair value as of each respective date. (4) There were no impairment charges on premises and equipment during the three months ended March 31, 2016 or March 31, 2015 . The Company typically holds the majority of its financial instruments until maturity and thus does not expect to realize many of the estimated fair value amounts disclosed. The disclosures also do not include estimated fair value amounts for items that are not defined as financial instruments, but which have significant value. These include such items as core deposit intangibles, the future earnings potential of significant customer relationships and the value of fee generating businesses. The Company believes the imprecision of an estimate could be significant. 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 March 31, 2016 Financial assets: Cash and cash equivalents $ 363,815 $ 363,815 $ 88,727 $ 275,088 $ — Federal Home Loan Bank stock 29,621 N/A Net loans(1) 4,871,358 4,968,228 — — 4,968,228 Accrued interest receivable 16,550 16,550 — 16,550 — Company-owned life insurance 108,958 108,958 — 108,958 — Securities held-to-maturity 1,678 1,678 — — 1,678 Financial liabilities: Deposits: Savings and demand deposits $ 3,372,466 $ 3,372,466 $ — $ 3,372,466 $ — Time deposits(2) 1,780,332 1,781,278 — 1,781,278 — Total deposits 5,152,798 5,153,744 — 5,153,744 — Short-term borrowings 334,480 334,480 — 334,480 — Long-term debt 399,476 394,546 — 394,546 — Accrued interest payable 3,308 3,308 — 3,308 — Deferred compensation plan liabilities 3,116 3,116 — 3,116 — (1) Included $13.8 million of impaired loans recorded at fair value on a nonrecurring basis and $24.4 million of loans recorded at fair value on a recurring basis. (2) Includes $61.2 million of other brokered funds. Estimated Fair Value (Dollars in thousands) Carrying Value Total Level 1 Level 2 Level 3 December 31, 2015 Financial assets: Cash and cash equivalents $ 387,323 $ 387,323 $ 74,734 $ 312,589 $ — Federal Home Loan Bank stock 29,621 N/A Net loans(1) 4,752,747 4,827,556 — — 4,827,556 Accrued interest receivable 15,646 15,646 — 15,646 — Company-owned life insurance 107,065 107,065 — 107,065 — Securities held-to-maturity 1,678 1,678 — — 1,678 Financial liabilities: Deposits: Savings and demand deposits $ 3,343,478 $ 3,343,478 $ — $ 3,343,478 $ — Time deposits(2) 1,671,103 1,670,058 — 1,670,058 — Total deposits 5,014,581 5,013,536 — 5,013,536 — Short-term borrowings 348,998 348,998 — 348,998 — Long-term debt 464,057 456,746 — 456,746 — Accrued interest payable 3,568 3,568 — 3,568 — Deferred compensation plan liabilities 1,982 1,982 — 1,982 — (1) Included $20.1 million of impaired loans recorded at fair value on a nonrecurring basis and $ 22.2 million of loans recorded at fair value on a recurring basis. (2) Includes $61.2 million of other brokered funds.

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2016
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 Gross Gross Fair March 31, 2016 Securities available-for-sale: U.S. government sponsored agency obligations $ 69,398 $ 553 $ — $ 69,951 Obligations of state and political subdivisions: Taxable 1,318 44 — 1,362 Tax-exempt 297,098 7,674 (441 ) 304,331 SBA Pools 26,286 446 (3 ) 26,729 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 304,808 4,932 (48 ) 309,692 Privately issued 97,468 235 (252 ) 97,451 Privately issued commercial mortgage-backed securities 22,465 — (81 ) 22,384 Corporate debt securities 114,915 734 (1,006 ) 114,643 Total securities available-for-sale $ 933,756 $ 14,618 $ (1,831 ) $ 946,543 Amortized Gross Gross Fair Securities held-to-maturity $ 1,678 $ — $ — $ 1,678 Amortized Gross Gross Fair December 31, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 59,414 $ 614 $ (6 ) $ 60,022 Obligations of state and political subdivisions: Taxable 1,318 3 — 1,321 Tax-exempt 282,366 5,312 (470 ) 287,208 SBA Pools 27,561 368 (4 ) 27,925 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 308,396 2,014 (1,104 ) 309,306 Privately issued 90,084 — (634 ) 89,450 Privately issued commercial mortgage-backed securities 13,826 — (121 ) 13,705 Corporate debt securities 102,284 127 (578 ) 101,833 Total securities available-for-sale $ 885,249 $ 8,438 $ (2,917 ) $ 890,770 Amortized Gross Gross Fair Securities held-to-maturity $ 1,678 $ — $ — $ 1,678 Proceeds from sales of securities and the associated gains and losses recorded in earnings are listed below: For the three months ended (Dollars in thousands) 2016 2015 Proceeds $ 14,977 $ 24,615 Gross gains 333 3 Gross losses — (110 ) The amortized cost and fair value of debt securities by contractual maturity at March 31, 2016 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. March 31, 2016 (Dollars in thousands) Amortized Cost Fair Value Securities with contractual maturities: Within one year $ 5,589 $ 5,603 After one year through five years 146,712 148,537 After five years through ten years 217,841 221,816 After ten years 563,614 570,587 Total securities available-for-sale $ 933,756 $ 946,543 Securities held-to-maturity: After one year through five years 1,678 1,678 Total securities held-to-maturity $ 1,678 $ 1,678 Securities with a carrying value of $421.0 million and $390.5 million were pledged at March 31, 2016 and December 31, 2015 , respectively, to secure borrowings and deposits. At March 31, 2016 and December 31, 2015 , 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 March 31, 2016 Obligations of state and political subdivisions: Tax-exempt $ 38,553 $ (211 ) $ 16,537 $ (230 ) $ 55,090 $ (441 ) SBA Pools 1,468 (3 ) — — 1,468 (3 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 13,919 (48 ) — — 13,919 (48 ) Privately issued 49,201 (252 ) — — 49,201 (252 ) Privately issued commercial mortgage-backed securities 22,384 (81 ) — — 22,384 (81 ) Corporate debt securities 32,649 (956 ) 403 (50 ) 33,052 (1,006 ) Total securities available-for-sale $ 158,174 $ (1,551 ) $ 16,940 $ (280 ) $ 175,114 $ (1,831 ) December 31, 2015 U.S. government sponsored agency obligations $ 9,994 $ (6 ) $ — $ — $ 9,994 $ (6 ) Obligations of state and political subdivisions: Tax-exempt 46,062 (357 ) 6,957 (113 ) 53,019 (470 ) SBA Pools 1,521 (4 ) — — 1,521 (4 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 118,509 (1,104 ) — — 118,509 (1,104 ) Privately issued 89,450 (634 ) — — 89,450 (634 ) Privately issued commercial mortgage-backed securities 13,706 (121 ) — — 13,706 (121 ) Corporate debt securities 74,494 (558 ) 431 (20 ) 74,925 (578 ) Total securities available-for-sale $ 353,736 $ (2,784 ) $ 7,388 $ (133 ) $ 361,124 $ (2,917 ) As of March 31, 2016 , the Company’s security portfolio consisted of 337 securities, 65 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 and/or widening of fair value credit and liquidity spreads versus 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 March 31, 2016 . The unrealized losses are spread across asset classes, primarily in those securities carrying fixed interest rates. At March 31, 2016 , the combination of these security asset class holdings in an unrealized loss position had an estimated fair value of $175.1 million with gross unrealized losses of $1.8 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 since their respective acquisition dates.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2016
Loans and Leases Receivable Disclosure [Abstract]
LOANS	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. 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 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 March 31, 2016 and December 31, 2015 were as follows: (Dollars in thousands) Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total loans March 31, 2016 Commercial real estate $ 231,646 $ 1,385,155 $ 1,616,801 Residential real estate 257,795 1,347,145 1,604,940 Commercial and industrial 22,205 1,257,197 1,279,402 Real estate construction 9,283 225,724 235,007 Consumer 8,906 178,680 187,586 Total $ 529,835 $ 4,393,901 $ 4,923,736 (1) December 31, 2015 Commercial real estate $ 250,497 $ 1,317,600 $ 1,568,097 Residential real estate 273,845 1,273,954 1,547,799 Commercial and industrial 24,724 1,232,682 1,257,406 Real estate construction 10,783 230,820 241,603 Consumer 9,417 182,378 191,795 Total $ 569,266 $ 4,237,434 $ 4,806,700 (1) (1) Includes net deferred costs totaling $3.4 million and $1.9 million at March 31, 2016 and December 31, 2015 , respectively. Acquired loans were recorded at fair value as of the acquisition date, which includes loans acquired in the CF Bancorp, First Banking Center, Peoples State Bank, Community Central Bank, First Place Bank, Talmer West Bank and FHC 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, which we refer to as a purchased credit impaired loans, the Company accounts for these loans 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. Acquired loans that are not purchased credit impaired loans are accounted for under ASC 310-20 and fair value discounts/premiums 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 (Dollars in thousands) 2016 2015 Balance at beginning of period $ 223,214 $ 277,058 Additions due to acquisitions — 5,268 Discount accretion (14,873 ) (20,964 ) Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations 15,725 29,431 Other activity, net (1) (12,599 ) (11,968 ) Balance at end of period $ 211,467 $ 278,825 (1) Primarily includes changes in the accretable discount due to loan payoffs, foreclosures and charge-offs. For purchased credit impaired 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. 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. The total identified improvement in the cash flow expectations resulting in yield adjustments on a prospective basis during the three months ended March 31, 2016 and 2015 for purchased credit impaired loans was $15.7 million and $29.4 million , respectively. The Company also identified declines in the cash flow expectations of certain purchased credit impaired 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 the yield on the loan. Below is the composition of the recorded investment for purchased credit impaired loans accounted for under ASC 310-30 at March 31, 2016 and December 31, 2015 . (Dollars in thousands) March 31, December 31, Contractual cash flows $ 962,665 $ 1,019,407 Non-accretable difference (221,363 ) (226,927 ) Accretable yield (211,467 ) (223,214 ) Loans accounted for under ASC 310-30 $ 529,835 $ 569,266 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. Purchased credit impaired 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) March 31, December 31, Nonperforming assets Nonaccrual loans Commercial real estate $ 15,262 $ 16,798 Residential real estate 16,939 18,390 Commercial and industrial 20,506 21,668 Real estate construction 232 413 Consumer 160 206 Total nonaccrual loans 53,099 57,475 Other real estate owned and repossessed assets (1) 26,434 28,157 Total nonperforming assets 79,533 85,632 Loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 Residential real estate $ 141 $ 58 Commercial and industrial 13 14 Consumer 230 225 Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 $ 384 $ 297 (1) Excludes closed branches and operating facilities. Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows: March 31, 2016 (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 Loans, excluding loans accounted for under ASC 310-30 Commercial real estate $ 2,764 $ 1,874 $ 11,354 $ 15,992 $ 1,369,163 $ 1,385,155 $ — Residential real estate 8,308 1,016 7,517 16,841 1,330,304 1,347,145 141 Commercial and industrial 3,663 2,069 13,250 18,982 1,238,215 1,257,197 13 Real estate construction 729 — 65 794 224,930 225,724 — Consumer 678 265 240 1,183 177,497 178,680 230 Total $ 16,142 $ 5,224 $ 32,426 $ 53,792 $ 4,340,109 $ 4,393,901 $ 384 December 31, 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 Loans, excluding loans accounted for under ASC 310-30 Commercial real estate $ 2,662 $ 1,378 $ 13,520 $ 17,560 $ 1,300,040 $ 1,317,600 $ — Residential real estate 10,582 2,539 7,377 20,498 1,253,456 1,273,954 58 Commercial and industrial 9,079 2,099 4,955 16,133 1,216,549 1,232,682 14 Real estate construction 2,046 — 304 2,350 228,470 230,820 — Consumer 1,287 402 287 1,976 180,402 182,378 225 Total $ 25,656 $ 6,418 $ 26,443 $ 58,517 $ 4,178,917 $ 4,237,434 $ 297 Impaired Loans A loan is impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans included nonperforming loans (including nonperforming troubled debt restructurings (TDRs)) and performing TDRs. Impaired loans are accounted for at the lower of the present value of expected cash flows or the estimated fair value of the collateral. When the present value of expected cash flows or the fair value of the collateral of an impaired loan not accounted for under ASC 310-30 is less than the amount of unpaid principal outstanding on the loan, the recorded principal balance of the loan is reduced to its carrying value through either a specific allowance for loan loss or a partial charge-off of the loan balance. Information as to total impaired loans is as follows: (Dollars in thousands) March 31, December 31, Nonaccrual loans $ 53,099 $ 57,475 Performing troubled debt restructurings: Commercial real estate 16,350 15,340 Residential real estate 7,240 5,749 Commercial and industrial 3,777 3,438 Real estate construction 420 420 Consumer 250 242 Total performing troubled debt restructurings 28,037 25,189 Total impaired loans $ 81,136 $ 82,664 Troubled Debt Restructurings (TDRs) The Company assesses all loan modifications to determine whether a modification constitutes a 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 purchased credit impaired 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 March 31, 2016 , there were $14.5 million of nonperforming TDRs and $28.0 million of performing TDRs included in impaired loans. As of December 31, 2015 , there were $14.5 million of nonperforming TDRs and $25.2 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 will be 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 months ended March 31, 2016 and 2015 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 Net charge-offs (recoveries) Provision (benefit) for loan losses For the three months ended March 31, 2016 Commercial real estate $ — $ — $ 435 $ — 5 $ 435 $ — $ (2 ) Residential real estate 229 123 663 52 14 1,067 55 48 Commercial and industrial 2,627 — 107 862 9 3,596 — (164 ) Consumer 7 — — — 1 7 2 — Total loans $ 2,863 $ 123 $ 1,205 $ 914 29 $ 5,105 $ 57 $ (118 ) (1) Loan forgiveness related to loans modified in TDRs for the three months ended March 31, 2016 totaled $142 thousand . Concession type (1) Financial effects of modification (Dollars in thousands) Principal deferral Interest rate Forbearance agreement Total number of loans Total recorded investment at March 31, 2015 Net charge-offs (recoveries) Provision for loan losses For the three months ended March 31, 2015 Commercial real estate $ — $ 350 $ 1,090 5 $ 1,440 $ (37 ) $ 208 Residential real estate 949 688 — 13 1,637 (1 ) 40 Commercial and industrial 340 857 26 9 1,223 — 182 Real estate construction — — 147 1 147 — — Consumer 15 — — 1 15 — — Total loans $ 1,304 $ 1,895 $ 1,263 29 $ 4,462 $ (38 ) $ 430 (1) There was no loan forgiveness related to loans modified in TDRs for the three months ended March 31, 2015 . When a modification qualifies as a TDR and the loan was initially a purchased credit impaired loan 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 months ended March 31, 2016 and 2015 , including the recorded investment as of March 31, 2016 and 2015 . 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 March 31, 2016 For the three months ended March 31, 2015 (Dollars in thousands) Total number Total recorded Charged off following Total number Total recorded Charged off following Commercial real estate 5 $ 986 $ — 12 $ 2,324 $ 471 Residential real estate 6 379 — 26 1,931 29 Commercial and industrial 4 219 — 8 220 — Consumer 1 — 3 1 78 — Total loans 16 $ 1,584 $ 3 47 $ 4,553 $ 500 At March 31, 2016 , commitments to lend additional funds to borrowers whose terms have been modified in TDRs totaled $184 thousand . The terms of certain other loans that were modified during the three months ended March 31, 2016 and 2015 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 Total March 31, 2016 Commercial real estate $ 1,454,921 $ 74,382 $ 87,498 $ — $ 1,616,801 Commercial and industrial 1,182,486 44,424 52,492 — 1,279,402 Real estate construction 229,576 834 4,597 — 235,007 Total $ 2,866,983 $ 119,640 $ 144,587 $ — $ 3,131,210 December 31, 2015 Commercial real estate $ 1,408,238 $ 60,130 $ 99,343 $ 386 $ 1,568,097 Commercial and industrial 1,177,354 24,129 55,923 — 1,257,406 Real estate construction 235,479 259 5,865 — 241,603 Total $ 2,821,071 $ 84,518 $ 161,131 $ 386 $ 3,067,106 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 March 31, 2016 Residential real estate $ 1,588,001 $ 16,939 $ 1,604,940 Consumer 187,426 160 187,586 Total $ 1,775,427 $ 17,099 $ 1,792,526 December 31, 2015 Residential real estate $ 1,529,409 $ 18,390 $ 1,547,799 Consumer 191,589 206 191,795 Total $ 1,720,998 $ 18,596 $ 1,739,594

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 Loans individually evaluated for impairment Commercial real estate $ 16,128 $ 15,484 $ 31,612 $ 44,811 $ 2,334 Residential real estate 16,617 7,562 24,179 29,961 1,948 Commercial and industrial 13,505 10,778 24,283 26,711 1,985 Real estate construction 422 230 652 881 129 Consumer 311 99 410 622 42 Total loans individually evaluated for impairment $ 46,983 $ 34,153 $ 81,136 $ 102,986 $ 6,438 December 31, 2015 Loans individually evaluated for impairment Commercial real estate $ 12,506 $ 19,632 $ 32,138 $ 46,099 $ 2,647 Residential real estate 13,304 10,835 24,139 30,409 2,729 Commercial and industrial 11,661 13,445 25,106 27,883 2,577 Real estate construction 402 431 833 1,369 158 Consumer 319 129 448 789 36 Total loans individually evaluated for impairment $ 38,192 $ 44,472 $ 82,664 $ 106,549 $ 8,147 For the three months ended For the three months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Loans individually evaluated for impairment Commercial real estate $ 32,306 $ 547 $ 42,397 $ 1,256 Residential real estate 24,643 309 25,194 248 Commercial and industrial 24,880 192 8,283 212 Real estate construction 658 14 1,221 18 Consumer 436 9 591 20 Total loans individually evaluated for impairment $ 82,923 $ 1,071 $ 77,686 $ 1,754 Changes in the allowance for loan losses and the allocation of the allowance for loans were as follows: Loans accounted for under ASC 310-30 (Dollars in thousands) Commercial Residential Commercial Real estate Consumer Total For the three months ended March 31, 2016 Allowance for loan losses - loans accounted for under ASC 310-30: Balance at beginning of period $ 11,030 $ 7,947 $ 1,487 $ 1,678 $ 124 $ 22,266 Transfer to loans excluded from ASC 310-30 accounting (1) (83 ) (58 ) (24 ) (227 ) — (392 ) Benefit for loan losses (1,257 ) (1,513 ) (36 ) (381 ) (36 ) (3,223 ) Gross charge-offs (1,764 ) (735 ) (734 ) (73 ) (6 ) (3,312 ) Recoveries 426 1,612 385 68 19 2,510 Net (charge-offs) recoveries (1,338 ) 877 (349 ) (5 ) 13 (802 ) Ending allowance for loan losses $ 8,352 $ 7,253 $ 1,078 $ 1,065 $ 101 $ 17,849 For the three months ended March 31, 2015 Allowance for loan losses - loans accounted for under ASC 310-30: Balance at beginning of period $ 17,558 $ 9,674 $ 3,264 $ 2,030 $ 206 $ 32,732 Transfer to loans excluded from ASC 310-30 accounting (1) (30 ) (48 ) — — — (78 ) Provision (benefit) for loan losses (2,547 ) 950 168 231 118 (1,080 ) Gross charge-offs (4,271 ) (1,564 ) (678 ) (531 ) (195 ) (7,239 ) Recoveries 3,571 248 365 502 39 4,725 Net charge-offs (700 ) (1,316 ) (313 ) (29 ) (156 ) (2,514 ) Ending allowance for loan losses $ 14,281 $ 9,260 $ 3,119 $ 2,232 $ 168 $ 29,060 (1) Primarily due to loans restructured that qualify as TDRs. Loans excluded from ASC 310-30 accounting (Dollars in thousands) Commercial Residential Commercial Real estate Consumer Total For the three months ended March 31, 2016 Allowance for loan losses - loans excluded from ASC 310-30 accounting: Balance at beginning of period $ 8,388 $ 6,485 $ 14,831 $ 1,021 $ 962 $ 31,687 Transfer in (1) 83 58 24 227 — 392 Provision (benefit) for loan losses 527 (331 ) 1,673 (210 ) 453 2,112 Gross charge-offs (410 ) (555 ) (244 ) (27 ) (504 ) (1,740 ) Recoveries 964 632 218 199 65 2,078 Net (charge-offs) recoveries 554 77 (26 ) 172 (439 ) 338 Ending allowance for loan losses $ 9,552 $ 6,289 $ 16,502 $ 1,210 $ 976 $ 34,529 For the three months ended March 31, 2015 Allowance for loan losses - loans excluded from ASC 310-30 accounting: Balance at beginning of period $ 7,234 $ 6,498 $ 7,149 $ 655 $ 904 $ 22,440 Transfer in (1) 30 48 — — — 78 Provision (benefit) for loan losses 5 (259 ) 3,043 (147 ) 431 3,073 Gross charge-offs (1,158 ) (897 ) (1,406 ) (12 ) (286 ) (3,759 ) Recoveries 673 387 382 32 99 1,573 Net (charge-offs) recoveries (485 ) (510 ) (1,024 ) 20 (187 ) (2,186 ) Ending allowance for loan losses $ 6,784 $ 5,777 $ 9,168 $ 528 $ 1,148 $ 23,405 (1) Primarily due to loans restructured that qualify as TDRs. Total loans (Dollars in thousands) Commercial Residential Commercial Real estate Consumer Total As of March 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 2,334 $ 1,948 $ 1,985 $ 129 $ 42 $ 6,438 Collectively evaluated for impairment 7,218 4,341 14,517 1,081 934 28,091 Accounted for under ASC 310-30 8,352 7,253 1,078 1,065 101 17,849 Total allowance for loan losses $ 17,904 $ 13,542 $ 17,580 $ 2,275 $ 1,077 $ 52,378 Balance of loans: Individually evaluated for impairment $ 31,612 $ 24,179 $ 24,283 $ 652 $ 410 $ 81,136 Collectively evaluated for impairment 1,353,543 1,322,966 1,232,914 225,072 178,270 4,312,765 Accounted for under ASC 310-30 231,646 257,795 22,205 9,283 8,906 529,835 Total loans $ 1,616,801 $ 1,604,940 $ 1,279,402 $ 235,007 $ 187,586 $ 4,923,736 As of December 31, 2015 Allowance for loan losses: Individually evaluated for impairment $ 2,647 $ 2,729 $ 2,577 $ 158 $ 36 $ 8,147 Collectively evaluated for impairment 5,741 3,756 12,254 863 926 23,540 Accounted for under ASC 310-30 11,030 7,947 1,487 1,678 124 22,266 Total allowance for loan losses $ 19,418 $ 14,432 $ 16,318 $ 2,699 $ 1,086 $ 53,953 Balance of loans: Individually evaluated for impairment $ 32,138 $ 24,139 $ 25,106 $ 833 $ 448 $ 82,664 Collectively evaluated for impairment 1,285,462 1,249,815 1,207,576 229,987 181,930 4,154,770 Accounted for under ASC 310-30 250,497 273,845 24,724 10,783 9,417 569,266 Total loans $ 1,568,097 $ 1,547,799 $ 1,257,406 $ 241,603 $ 191,795 $ 4,806,700

OTHER REAL ESTATE OWNED AND REP

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS	3 Months Ended
	Mar. 31, 2016
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: (Dollars in thousands) Other real estate Repossessed Balance at January 1, 2016 $ 22,930 $ 5,329 Transfers in (1) 3,342 792 Capitalized expenditures — 229 Payments received — (359 ) Disposals (4,145 ) (387 ) Write-downs (1,209 ) (311 ) Change in valuation allowance 325 — Balance at March 31, 2016 $ 21,243 $ 5,293 Balance at January 1, 2015 $ 38,908 $ 9,835 Additions due to acquisitions 1,260 — Additions due to the adoption of ASU 2014-04 (2) 540 — Transfers in (1) 5,709 397 Capitalized expenditures — 1,116 Payments received — (1,401 ) Disposals (9,351 ) (177 ) Write-downs (1,362 ) (194 ) Change in valuation allowance — (2,359 ) Balance at March 31, 2015 $ 35,704 $ 7,217 (1) 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. (2) 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. At March 31, 2016 and December 31, 2015, the Company had $374 thousand and $951 thousand , respectively, 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 $7.9 million of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process, as of March 31, 2016 . Activity in the valuation allowance for other real estate owned and repossessed assets during the three months ended March 31, 2016 and 2015 is summarized below. Valuation allowance (Dollars in thousands) Other real estate owned Repossessed assets For the three months ended March 31, 2016 Beginning balance $ 325 $ 5,104 Write-downs (325 ) — Ending Balance $ — $ 5,104 For the three months ended March 31, 2015 Beginning balance $ — $ 460 Provision for valuation allowance — 2,359 Ending Balance $ — $ 2,819 Income and expenses related to other real estate owned and repossessed assets, recorded as a component of “Other expense” in the Consolidated Statements of Income, were as follows: (Dollars in thousands) Other real estate owned Repossessed assets For the three months ended March 31, 2016 Net gain (loss) on sale $ 1,555 $ (64 ) Write-downs (1,209 ) (311 ) Relief of valuation allowance 325 — Net operating expenses (376 ) (84 ) Total $ 295 $ (459 ) For the three months ended March 31, 2015 Net gain (loss) on sale $ 1,415 $ (14 ) Write-downs (1,362 ) (194 ) Provision for valuation allowance — (2,359 ) Net operating expenses (295 ) (25 ) Total $ (242 ) $ (2,592 )

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2016
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 6.4 years as of March 31, 2016 . The table below presents the Company’s net carrying amount of CDIs. (Dollars in thousands) March 31, December 31, Gross carrying amount $ 23,068 $ 23,068 Accumulated amortization (10,872 ) (10,260 ) Net carrying amount $ 12,196 $ 12,808 Amortization expense recognized on CDIs was $612 thousand and $649 thousand for the three months ended March 31, 2016 and 2015 , 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 FHC completed on 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	3 Months Ended
	Mar. 31, 2016
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 and the origination and purchase of commercial real estate 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 Mortgage Total For the three months ended March 31, 2016 Fair value, beginning of period $ 475 $ 57,638 $ 58,113 Additions from loans sold with servicing retained — 1,700 1,700 Changes in fair value due to: Reductions from loans paid off during the period (14 ) (1,826 ) (1,840 ) Changes due to valuation inputs or assumptions(1) (30 ) (6,595 ) (6,625 ) Fair value, end of period $ 431 $ 50,917 $ 51,348 Principal balance of loans serviced $ 94,442 $ 5,750,783 $ 5,845,225 For the three months ended March 31, 2015 Fair value, beginning of period $ 691 $ 69,907 $ 70,598 Additions from loans sold with servicing retained — 2,915 2,915 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 (29 ) (2,289 ) (2,318 ) Changes due to valuation inputs or assumptions(1) (41 ) (4,043 ) (4,084 ) Fair value, end of period $ 621 $ 53,788 $ 54,409 Principal balance of loans serviced $ 203,491 $ 5,799,055 $ 6,002,546 (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 three months ended March 31, 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 March 31, 2016 and December 31, 2015 . Commercial Real Estate Mortgage As of March 31, 2016 Prepayment speed 0.00 - 50.00% 0.00 - 38.10% Weighted average (“WA”) discount rate 19.23 % 9.13 % WA cost to service/per year $ 472 $ 61 WA ancillary income/per year N/A 36 WA float range 0.56 % 1.05 - 1.55% As of December 31, 2015 Prepayment speed 0.00 - 50.00% 0.00 - 34.56% WA discount rate 19.18 % 9.13 % WA cost to service/per year $ 472 $ 61 WA ancillary income/per year N/A 36 WA float range 0.56 % 0.56 - 1.68% The Company realized total loan servicing fee income of $2.7 million and $2.6 million for the three months ended March 31, 2016 and 2015 , 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	3 Months Ended
	Mar. 31, 2016
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. March 31, 2016 December 31, 2015 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 $ 37,000 $ — $ 1,825 $ 37,000 $ 105 $ 397 Total risk management purposes 37,000 — 1,825 37,000 105 397 Customer-initiated and mortgage banking activities: Forward contracts related to mortgage loans to be delivered for sale 115,533 — 610 105,711 — 38 Interest rate lock commitments 114,546 2,908 — 62,081 1,220 — Customer-initiated derivatives 417,491 9,761 9,998 354,699 4,143 4,144 Total customer-initiated and mortgage banking activities 647,570 12,669 10,608 522,491 5,363 4,182 Total gross derivatives $ 684,570 $ 12,669 $ 12,433 $ 559,491 $ 5,468 $ 4,579 (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 $460 thousand at March 31, 2016 and $208 thousand at December 31, 2015 . 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 (Dollars in thousands) Location of Gain (Loss) 2016 2015 Forward contracts related to mortgage loans to be delivered for sale Net gain on sale of loans $ (1,975 ) $ (1,144 ) Interest rate lock commitments Net gain on sale of loans 1,688 2,162 Customer-initiated derivatives Other noninterest income (236 ) 84 Total gain (loss) recognized in income $ (523 ) $ 1,102 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 months ended March 31, 2016 and 2015 . (Dollars in thousands) Amount of gain Amount of gain (loss) Amount of gain For the three months ended March 31, 2016 Interest rate swaps designated as cash flow hedges $ (1,681 ) $ 148 $ — For the three months ended March 31, 2015 Interest rate swaps designated as cash flow hedges $ (325 ) $ 88 $ — At March 31, 2016 , the Company expected $536 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 (Dollars in thousands) Gross Gross amounts Net amounts Financial Collateral Net March 31, 2016 Offsetting derivative assets Derivative assets $ 9,761 $ — $ 9,761 $ (9,761 ) $ 9,018 $ 9,018 Offsetting derivative liabilities Derivative liabilities 11,823 — 11,823 (9,761 ) 2,062 — December 31, 2015 Offsetting derivative assets Derivative assets $ 4,248 $ — $ 4,248 $ (4,248 ) $ 5,887 $ 5,887 Offsetting derivative liabilities Derivative liabilities 4,541 — 4,541 (4,248 ) 293 —

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND GUARANTEES	3 Months Ended
	Mar. 31, 2016
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 $856 thousand and $622 thousand at March 31, 2016 and December 31, 2015 , 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: March 31, 2016 December 31, 2015 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Commitments to extend credit $ 663,579 $ 615,156 $ 1,278,735 $ 658,268 $ 489,102 $ 1,147,370 Standby letters of credit 61,926 4,002 65,928 61,300 4,801 66,101 Total commitments $ 725,505 $ 619,158 $ 1,344,663 $ 719,568 $ 493,903 $ 1,213,471 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 $19.3 million and $25.2 million at March 31, 2016 and December 31, 2015 , 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 $18.0 million and $19.4 million at March 31, 2016 and December 31, 2015 , respectively. In the event of nonperformance, we have rights to the underlying collateral securing the loans. As of March 31, 2016 and December 31, 2015 , we had recorded a liability of $100 thousand and $125 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 March 31, 2016 and December 31, 2015 , our standby letters of credit totaled $65.9 million and $66.1 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 both March 31, 2016 and December 31, 2015 , our liability recorded in connection with these representations and warranties totaled $1.3 million. 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 and pending shareholder litigation related to the merger with Chemical Financial Corporation that is publicly available and further discussed in Part II, Item 1. Legal Proceedings of this Quarterly Report on Form 10-Q. 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	3 Months Ended
	Mar. 31, 2016
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. March 31, 2016 December 31, 2015 (Dollars in thousands) Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings: FHLB advances: 0.68% - 0.81% fixed-rate notes $ 225,000 0.72 % $ 300,000 0.58 % FHLB advances: 0.75% variable-rate notes 50,000 0.75 — — Securities sold under agreements to repurchase: 0.10% variable-rate notes 21,980 0.10 18,998 0.10 Holding company line of credit: floating-rate based on one-month LIBOR plus 1.75% 37,500 2.19 30,000 2.18 Total short-term borrowings 334,480 0.85 348,998 0.69 Long-term debt: FHLB advances: 0.50% - 7.44% fixed-rate notes due 2016 to 2027 (2) 329,639 1.33 393,851 1.34 Securities sold under agreements to repurchase: 4.11% - 4.30% fixed-rate notes due 2016 to 2037 (3) 54,388 4.19 54,800 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) 10,902 2.86 10,865 2.65 Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due in 2032 (5) 4,547 3.88 4,541 3.58 Total long-term debt 399,476 1.79 464,057 1.73 Total short-term borrowings and long-term debt $ 733,956 1.36 % $ 813,055 1.28 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The March 31, 2016 balance includes advances payable of $325.8 million and purchase accounting premiums of $3.8 million . The December 31, 2015 balance includes advances payable of $389.6 million and purchase accounting premiums of $4.3 million . (3) The March 31, 2016 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $4.4 million . The December 31, 2015 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $4.8 million . (4) The March 31, 2016 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.1 million . The December 31, 2015 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.1 million . (5) The March 31, 2016 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $453 thousand . The December 31, 2015 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $459 thousand . Selected financial information pertaining to the components of our short-term borrowings is as follows: For the three months ended March 31, (Dollars in thousands) 2016 2015 FHLB advances: Average daily balance $ 295,879 $ 18,444 Average interest rate during the period 0.75 % 0.29 % Maximum month-end balance $ 350,000 $ 50,000 Securities sold under agreement to repurchase: Average daily balance $ 19,885 $ 20,439 Average interest rate during the period 0.10 % 0.10 % Maximum month-end balance $ 21,980 $ 22,454 Federal funds purchased: Average daily balance $ — $ 1,400 Average interest rate during the period N/A 0.31 % Maximum month-end balance $ — $ 126,000 Holding company line of credit: Average daily balance $ 30,165 $ 9,556 Average interest rate during the period 2.18 % 3.17 % Maximum month-end balance $ 37,500 $ 20,000 Securities sold under agreements to repurchase represent funds deposited with banks by retail customers (short-term borrowings). 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 $56.8 million at March 31, 2016 which are not covered by FDIC insurance. The Company's securities sold under agreements to repurchase do not qualify as sales for accounting purposes. The remaining contract maturity, excluding purchase accounting adjustments, of securities sold under agreement to repurchase, both long-term and short-term, is as follows: March 31, 2016 Remaining Contractual Maturities of the Agreements (Dollars in thousands) Overnight and continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Securities sold under agreements to repurchase $ 21,980 $ — $ — $ 50,000 $ 71,980 Total borrowings $ 21,980 $ — $ — $ 50,000 $ 71,980 Amounts related to securities sold under agreements to repurchase not included in offsetting disclosure in Footnote 10 $ 71,980 Talmer Bank is a member 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 March 31, 2016 , FHLB advances were collateralized by $1.9 billion of commercial and mortgage loans, with $1.2 billion in the form of a blanket lien arrangement and $706.4 million under specific lien arrangements. Based on this collateral, the Company is eligible to borrow up to an additional $626.6 million at March 31, 2016 ; however, due to resolutions adopted by the Company's board of directors, this amount is limited to an additional $453.0 million .

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2016
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 at the federal statutory rate to the Company’s provision for income taxes and effective tax rate follows. For the three months ended March 31, 2016 2015 (Dollars in thousands) Amount Rate Amount Rate Tax based on federal statutory rate $ 7,897 35.0 % $ 4,856 35.0 % Effect of: Tax exempt income (762 ) (3.4 ) (631 ) (4.5 ) State taxes, net of federal benefit 180 0.8 266 1.9 Change in valuation allowance (270 ) (1.2 ) — — Tax settlement with the Internal Revenue Service (4,306 ) (19.1 ) — — Transaction costs 266 1.2 — — Deferred tax benefit — — 29 0.2 Other, net (125 ) (0.6 ) (79 ) (0.6 ) Income tax expense $ 2,880 12.7 % $ 4,441 32.0 % During the period ended March 31, 2016 , the Company finalized a settlement with the Internal Revenue Service regarding First Place Financial Corp.'s deduction of bad debt expense incurred prior to the Company's acquisition of First Place Bank which resulted in a tax benefit of $4.3 million . Talmer Bank, as successor to First Place Bank, was granted court approval to act as substitute agent for the First Place Financial Corp. for the purposes of amending various returns, which ultimately favorably impacted the tax filings of Talmer Bank.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 , 1.1 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 Class A 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 three months ended March 31, 2016 and 2015, there were no stock options granted. Activity in the Plan during the three months ended March 31, 2016 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, 2016 7,235 $ 6.97 Exercised (1) (551 ) 6.60 Outstanding at March 31, 2016 6,684 7.00 5.49 $ 74,130 Options fully vested 6,684 7.00 5.49 74,130 Exercisable at March 31, 2016 6,684 7.00 5.49 74,130 (1) Options exercised during the three months ended March 31, 2016 had a weighted average fair value of $16.18 , at respective exercise dates. The total intrinsic value of stock options exercised was $5.3 million and $1.1 million for the three months ended March 31, 2016 and 2015 , respectively . Total cash received from option exercises during the three months ended March 31, 2016 and 2015 was $1.6 million and $210 thousand , respectively, resulting in the issuance of 245 thousand shares and 35 thousand shares, respectively. During the three months ended March 31, 2016 and 2015 , there were 160 thousand shares and 46 thousand shares, respectively, issued under the net-settlement option. The tax benefit realized from option exercises during the three months ended March 31, 2016 and 2015 was $1.5 million and $292 thousand , respectively. All of the Company’s stock options were fully vested prior to January 1, 2015 and there was no unrecognized compensation cost related to nonvested stock options granted under the Plan. 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 to employees either vest in their entirety following a five -year service period or in one-third increments over a three -year service period. Restricted stock awards granted to directors vest over a one -year service period and 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, with certain exceptions 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, 2016 726 $ 14.82 Granted 326 16.65 Forfeited (2 ) 15.77 Nonvested at March 31, 2016 1,050 $ 15.38 Total expense for restricted stock awards totaled $698 thousand for the three months ended March 31, 2016 , of which $627 thousand related to employees was included in “Salary and employee benefits” and $71 thousand related to directors was included in “Professional fees” in the Consolidated Statements of Income. For the three months ended March 31, 2015 , total expense for restricted stock awards totaled $351 thousand , of which $298 thousand related to employees was included in "Salary and employee benefits" and $53 thousand related to directors was included in "Professional fees" in the Consolidated Statements of Income. As of March 31, 2016 , the total compensation costs related to nonvested restricted stock that has not yet been recognized totaled $13.3 million and the weighted-average period over which these costs are expected to be recognized is 3.4 years . With respect to restricted stock awards with a five -year vesting term, in the event a change in control occurs, vesting of these restricted stock awards would be accelerated to the earlier of the one -year anniversary of the change in control event or the date the individual is terminated without cause by the Company or Talmer Bank (or any of their successors), or the date the individual terminates his or her employment for good reason, during the one-year period following the change in control. With respect to restricted stock awards with a three -year vesting term, vesting of these restricted stock awards would be accelerated if the individual was terminated by the Company or Talmer Bank (or any of their successors) without cause.

REGULATORY CAPITAL MATTERS

REGULATORY CAPITAL MATTERS	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 , the Company and its subsidiary bank 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, the Company 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. The capital conservation buffer for 2016 is 0.625% . We have elected to opt-out of including capital in accumulated other comprehensive income in common equity tier 1 capital. At March 31, 2016 and December 31, 2015 , 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 following is a summary of actual and required capital amounts and ratios in accordance with current regulatory standards: Actual For Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2016 Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 730,134 13.1 % $ 444,723 8.0 % $ 479,467 8.6 % N/A N/A Talmer Bank and Trust 756,388 13.7 442,723 8.0 475,928 8.6 $ 553,404 10.0 % Common equity tier 1 capital Talmer Bancorp, Inc. (Consolidated) 675,500 12.2 250,157 4.5 284,901 5.1 N/A N/A Talmer Bank and Trust 701,754 12.7 249,032 4.5 282,236 5.1 359,713 6.5 Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 675,500 12.2 333,542 6.0 368,286 6.6 N/A N/A Talmer Bank and Trust 701,754 12.7 332,042 6.0 365,247 6.6 442,723 8.0 Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 675,500 10.3 262,349 4.0 262,349 4.0 N/A N/A Talmer Bank and Trust 701,754 10.7 263,103 4.0 263,103 4.0 328,879 5.0 December 31, 2015 Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 718,666 13.0 % $ 442,170 8.0 % N/A N/A N/A N/A Talmer Bank and Trust 740,338 13.5 439,255 8.0 N/A N/A $ 549,068 10.0 % Common equity tier 1 capital Talmer Bancorp, Inc. (Consolidated) 662,668 12.0 248,721 4.5 N/A N/A N/A N/A Talmer Bank and Trust 684,340 12.5 247,081 4.5 N/A N/A 356,894 6.5 Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 662,668 12.0 331,628 6.0 N/A N/A N/A N/A Talmer Bank and Trust 684,340 12.5 329,441 6.0 N/A N/A 439,255 8.0 Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 662,668 10.2 259,694 4.0 N/A N/A N/A N/A Talmer Bank and Trust 684,340 10.5 259,784 4.0 N/A N/A 324,730 5.0 The Company’s principal source of funds for dividend payments is dividends received from Talmer Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Talmer Bank cannot declare or pay a cash dividend or dividend in kind unless it will have a surplus amounting to not less than 20% of its capital after payment of the dividend. In addition, Talmer Bank may pay dividends only out of net income then on hand, after deducting its losses and bad debts. These limitations can affect Talmer Bank’s ability to pay dividends. No dividends were paid during the three months ended March 31, 2016 . For the three months ended March 31, 2015, dividends of $15.0 million were paid to the Company by a subsidiary bank. On April 27, 2016 , a cash dividend on the Company’s Class A common stock of $0.05 per share was declared. The dividend will be paid on May 25, 2016, to the Company’s Class A common shareholders of record as of May 11, 2016 .

PARENT COMPANY FINANCIAL STATEM

PARENT COMPANY FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
PARENT COMPANY FINANCIAL STATEMENTS	PARENT COMPANY FINANCIAL STATEMENTS Balance Sheets - Parent Company (Dollars in thousands) March 31, December 31, Assets Cash and cash equivalents $ 13,643 $ 12,581 Investment in subsidiary 778,322 750,713 Income tax benefit 10,006 8,504 Other assets 891 994 Total assets $ 802,862 $ 772,792 Liabilities Short-term borrowings $ 37,500 $ 30,000 Long-term debt 15,448 15,406 Accrued expenses and other liabilities 1,244 2,171 Total liabilities 54,192 47,577 Shareholders’ equity 748,670 725,215 Total liabilities and shareholders’ equity $ 802,862 $ 772,792 Statements of Income and Comprehensive Income - Parent Company For the three months ended March 31, (Dollars in thousands) 2016 2015 Income Dividend income from subsidiary $ — $ 15,000 Other noninterest income 5 5 Total income 5 15,005 Expenses Salary and employee benefits 1,688 1,221 Merger and acquisition expense 2,874 996 Professional service fees 515 377 Insurance expense 115 80 Marketing expense 15 14 Interest on short-term borrowings 167 74 Interest on long-term debt 198 162 Other 53 114 Total expenses 5,625 3,038 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries (5,620 ) 11,967 Income tax benefit 1,814 653 Equity in (over) under distributed earnings of subsidiaries 23,489 (3,187 ) Net income $ 19,683 $ 9,433 Total comprehensive income, net of tax $ 23,410 $ 12,223 Statements of Cash Flows - Parent Company For the three months ended March 31, (Dollars in thousands) 2016 2015 Cash flows from operating activities Net income $ 19,683 $ 9,433 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries (23,489 ) 3,187 Stock-based compensation expense 305 143 Increase in income tax benefit (1,502 ) (736 ) Decrease in other assets, net 103 100 Decrease in accrued expenses and other liabilities, net (885 ) (2,633 ) Net cash from operating activities (5,785 ) 9,494 Cash flows from investing activities Cash used in acquisitions — (13,323 ) Refund of investment — 2,225 Net cash used in investing activities — (11,098 ) Cash flows from financing activities Issuance of common stock and restricted stock awards, including tax benefit 2,667 266 Repurchase of warrants to repurchase 2.5 million shares, at fair value — (19,892 ) Cash dividends paid on common stock(1) (3,320 ) (706 ) Draw on senior unsecured line of credit 7,500 20,000 Repayment of long-term debt — (3,500 ) Net cash from financing activities 6,847 (3,832 ) Net increase (decrease) in cash and cash equivalents 1,062 (5,436 ) Beginning cash and cash equivalents 12,581 9,497 Ending cash and cash equivalents $ 13,643 $ 4,061 (1) $0.05 per share and $0.01 per share for the three months ended March 31, 2016 and 2015 , respectively.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	3 Months Ended
	Mar. 31, 2016
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 (In thousands, except per share data) 2016 2015 Net income $ 19,683 $ 9,433 Net income allocated to participating securities 249 53 Net income allocated to common shareholders (1) $ 19,434 $ 9,380 Weighted average common shares - issued 66,502 70,619 Average unvested restricted share awards (866 ) (403 ) Weighted average common shares outstanding - basic 65,636 70,216 Effect of dilutive securities Employee and director stock options 4,054 3,962 Warrants 16 925 Weighted average common shares outstanding - diluted 69,706 75,103 EPS available to common shareholders Basic $ 0.30 $ 0.13 Diluted $ 0.28 $ 0.12 (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 $16.89 per share and $14.07 per share for the three months ended March 31, 2016 and 2015 , respectively. The following average shares related to outstanding options 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 options or warrants during the three months ended March 31, 2016 and no outstanding antidilutive warrants during the three months ended March 31, 2015. (Shares in thousands) For the three months ended March 31, 2015 Average outstanding options 35 Outstanding exercise prices: Low end $ 14.44 High end $ 14.44

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Mar. 31, 2016
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 For the three months ended March 31, 2016 Beginning balance $ 3,589 $ (190 ) $ 3,399 Other comprehensive income (loss) before reclassifications 4,939 (1,092 ) 3,847 Amounts reclassified from accumulated other comprehensive income (216 ) (1) 96 (2) (120 ) Net current period other comprehensive income (loss) 4,723 (996 ) 3,727 Ending balance $ 8,312 $ (1,186 ) $ 7,126 For the three months ended March 31, 2015 Beginning balance $ 3,995 $ (145 ) $ 3,850 Other comprehensive income (loss) before reclassifications 2,875 (211 ) 2,664 Amounts reclassified from accumulated other comprehensive income 69 (1) 57 (2) 126 Net current period other comprehensive income (loss) 2,944 (154 ) 2,790 Ending balance $ 6,939 $ (299 ) $ 6,640 (1) Amounts are included in “Net gain (loss) on sales of securities” in the Consolidated Statements of Income within total noninterest income, and were $333 thousand and $ (107) thousand for the three months ended March 31, 2016 and 2015 , respectively. Income tax expense (benefit) associated with the reclassification adjustments for the three months ended March 31, 2016 and 2015 was $ (117) thousand and $38 thousand , respectively, and are included in “Income tax provision” in the Consolidated Statements of Income. (2) Amounts are included in “Other brokered funds” in the Consolidated Statements of Income within total interest expense and were $148 thousand and $88 thousand for the three months ended March 31, 2016 and 2015 , respectively. Income tax expense associated with the reclassification adjustment for the three months ended ended March 31, 2016 and 2015 was $52 thousand and $31 thousand , respectively, and were included in “Income tax provision” in the Consolidated Statements of Income.

BASIS OF PRESENTATION AND REC28

BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted and Issued Accounting Standards	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 the Company's financial statements. In May 2014, the Financial Accounting Standards Board ("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. 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 GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. In March 2016, the FASB issued ASU 2016-08, " Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ", ("ASU 2016-08"), which further clarifies ASU 2014-09 by providing implementation guidance on principal versus agent considerations. ASU 2016-08 does not change the core principal of ASU 2014-09, but is intended to improve the operations and understanding of principal versus agent considerations. In August 2015, the FASB issued ASU 2015-14, " Deferral of the Effective Date" ("ASU 2015-14"), which provides a one year deferral to 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. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities ” (“ASU 2016-01”), which amends the accounting guidance related to the classification and measurement of financial instruments. While ASU 2016-01 retains many current requirements, it revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 requires entities to carry investments in equity securities at fair value through net income, with exceptions for investments that qualify for the equity method of accounting, investments resulting in investee consolidation, or investments in which the practicability exception to fair value measurement has been elected. The ASU also provides a new requirement to separately present in other comprehensive income the fair value change of instrument-specific credit risk, with exceptions to derivative liabilities which will continue to be presented in net income. ASU 2016-01 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. As such, the Company will adopt ASU 2016-01 as of January 1, 2018. Under the provision, the Company will be required to make a cumulative-effect adjustment to retained earnings as of the beginning of the year in which the guidance is effective. Exceptions exist for equity securities without readily determinable fair values and the use of the exit price to measure fair value for disclosure purposes, which will both be applied prospectively as of the date of adoption. The Company is currently evaluating the provisions of ASU 2016-01. In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), which improves the lease recognition process and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing agreements. In addition, the ASU defines a lease and simplifies a number of the requirements provided in the current lease model. ASU 2016-02 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As such, the Company will adopt ASU 2016-02 as of January 1, 2019. Under the provision, the Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the provisions of ASU 2016-02. In March 2016, the FASB issued ASU 2016-09, " Improvements to Employee Share-Based Payment Accounting " ("ASU 2016-09"), which simplifies the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. ASU 2016-09 is effective for public companies for annual periods, and interim periods within those annual periods beginning after December 15, 2016. As such, the Company will adopt ASU 2016-09 as of January 1, 2017. Under the provision, the Company is required to use varying transition methods for different amendments. Amendments relative to the timing of the recognition of excess tax benefits, minimum statutory withholding requirements and forfeitures should be applied using a modified retrospective transition method as a cumulative-effect adjustment to retained earnings as of the date of adoption, while amendments that require excess tax benefits and tax deficiencies on the income statement should be applied prospectively. Amendments regarding the presentation of taxes paid on the statement of cash flows should be applied retrospectively, while entities may elect to apply amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective or retrospective transition method. The Company is currently evaluating the provision of ASU 2016-09.

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables) - FHC	3 Months Ended
	Mar. 31, 2016
BUSINESS COMBINATIONS
Summary of the assets and liabilities purchased in acquisition recorded at fair value	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 as presented in the following table. (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

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2016
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) March 31, 2016 Securities available-for-sale: U.S. government sponsored agency obligations $ 69,951 $ — $ 69,951 $ — Obligations of state and political subdivisions: Taxable 1,362 — 1,044 318 Tax-exempt 304,331 — 304,331 — Small Business Administration (“SBA”) Pools 26,729 — 26,729 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 309,692 — 309,692 — Privately issued 97,451 — 97,451 — Privately issued commercial mortgage-backed securities 22,384 — 22,384 — Corporate debt securities 114,643 — 114,643 — Total securities available-for-sale 946,543 — 946,225 318 Loans measured at fair value: Residential real estate 24,377 — — 24,377 Loans held for sale 25,040 — 25,040 — Loan servicing rights 51,348 — — 51,348 Derivative assets: Interest rate lock commitments 2,908 — 2,908 — Customer-initiated derivatives 9,761 — 9,761 — Total derivatives 12,669 — 12,669 — Total assets at fair value $ 1,059,977 $ — $ 983,934 $ 76,043 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 610 — 610 — Customer-initiated derivatives 9,998 — 9,998 — Risk management derivatives 1,825 — 1,825 — Total derivatives 12,433 — 12,433 — Total liabilities at fair value $ 12,433 $ — $ 12,433 $ — December 31, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 60,022 $ — $ 60,022 $ — Obligations of state and political subdivisions: Taxable 1,321 — 1,003 318 Tax-exempt 287,208 — 287,208 — SBA Pools 27,925 — 27,925 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 309,306 — 309,306 — Privately issued 89,450 — 89,450 — Privately issued commercial mortgage-backed securities 13,705 — 13,705 — Corporate debt securities 101,833 — 101,833 — Total securities available-for-sale 890,770 — 890,452 318 Loans measured at fair value: Residential real estate 22,233 — — 22,233 Loans held for sale 58,223 — 58,223 — Loan servicing rights 58,113 — — 58,113 Derivative assets: Interest rate lock commitments 1,220 — 1,220 — Customer-initiated derivatives 4,143 — 4,143 — Risk management derivatives 105 — 105 — Total derivatives 5,468 — 5,468 — Total assets at fair value $ 1,034,807 $ — $ 954,143 $ 80,664 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 38 — 38 — Customer-initiated derivatives 4,144 — 4,144 — Risk management derivatives 397 — 397 — Total derivatives 4,579 — 4,579 — Total liabilities at fair value $ 4,579 $ — $ 4,579 $ —
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 March 31, 2016 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Loans held for investment Loan servicing rights Balance, beginning of period $ 318 $ 22,233 $ 58,113 Transfers from loans held for sale — 1,834 — Gains (losses): Recorded in earnings (realized): Recorded in “Net gain on sales of loans” — 82 — Recorded in “Mortgage banking and other loan fees” — 523 (8,465 ) New originations — — 1,700 Repayments — (295 ) — Balance, end of period $ 318 $ 24,377 $ 51,348 Three months ended March 31, 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 $ 3,425 $ 19,526 $ 70,598 Transfer between levels within fair value hierarchy — (3,000 ) — — Transfers from loans held for sale — — 3,219 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” — 1 — — Recorded in “Net gain on sales of loans” — — 127 — Recorded in “Mortgage banking and other loan fees” — — 108 (6,402 ) Recorded in OCI (pre-tax) — 4 — — New originations — — — 2,915 Reduction from servicing rights sold — — — (12,702 ) Repayments — — (822 ) — Balance, end of period $ 397 $ 430 $ 22,158 $ 54,409
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) March 31, 2016 December 31, 2015 Aggregate fair value $ 24,377 $ 22,233 Contractual balance 23,449 21,910 Fair market value gain 928 323
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) March 31, 2016 December 31, 2015 Aggregate fair value $ 25,040 $ 58,223 Contractual balance 23,880 55,911 Unrealized gain 1,160 2,312
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) March 31, 2016 Impaired loans:(1) Commercial real estate $ 395 $ — $ — $ 395 Residential real estate 3,156 — — 3,156 Commercial and industrial 10,136 — — 10,136 Real estate construction 80 — — 80 Consumer 42 — — 42 Total impaired loans 13,809 — — 13,809 Other real estate owned(2) 2,323 — — 2,323 Repossessed assets(3) 5,238 — — 5,238 Total $ 21,370 $ — $ — $ 21,370 December 31, 2015 Impaired loans:(1) Commercial real estate $ 2,960 $ — $ — $ 2,960 Residential real estate 5,381 — — 5,381 Commercial and industrial 11,522 — — 11,522 Real estate construction 195 — — 195 Consumer 18 — — 18 Total impaired loans 20,076 — — 20,076 Other real estate owned(2) 4,562 — — 4,562 Repossessed assets(3) 5,038 — — 5,038 Premises and equipment(4) 1,575 — — 1,575 Total $ 31,251 $ — $ — $ 31,251 (1) Specific reserves of $3.0 million and $4.4 million were provided to reduce the fair value of these loans at March 31, 2016 and December 31, 2015 , respectively, based on the estimated fair value of the underlying collateral. In addition, net charge-offs of $93 thousand and $67 thousand reduced the fair value of these loans for the three months ended March 31, 2016 and 2015 , respectively. (2) The Company charged $884 thousand and $1.4 million through other noninterest expense during the three months ended March 31, 2016 and 2015 , respectively, to reduce the fair value of these properties. There was no valuation allowance and $325 thousand of valuation allowance provided to reduce the fair value of these properties at March 31, 2016 and December 31, 2015 , respectively, based on the estimated fair value as of each respective date. (3) The Company charged $311 thousand and $194 thousand through other noninterest expense during the three months ended March 31, 2016 and 2015 to reduce the fair value of these assets. A valuation allowance of $5.1 million was provided to reduce the fair value of these repossessed assets at both March 31, 2016 and December 31, 2015 , based on the estimated fair value as of each respective date. (4) There were no impairment charges on premises and equipment during the three months ended March 31, 2016 or March 31, 2015 .
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 (Dollars in thousands) 2016 2015 Change in fair value: Included in “Net gain on sales of loans” $ 82 $ 127 Included in “Mortgage banking and other loan fees” 523 108
Loans held for sale
Fair Value
Schedule of total amount of gains/(losses) from changes in fair value included in earnings	The total amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income were as follows: For the three months ended (Dollars in thousands) 2016 2015 Interest income(1) $ 329 $ 1,070 Change in fair value(2) (1,152 ) (1,541 ) Total included in earnings $ (823 ) $ (471 ) (1) Included in "Interest and fees on loans" in the Consolidated Statements of Income. (2) Included in "Net gain on sales of loans" in the Consolidated Statements of Income.
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 March 31, 2016 Financial assets: Cash and cash equivalents $ 363,815 $ 363,815 $ 88,727 $ 275,088 $ — Federal Home Loan Bank stock 29,621 N/A Net loans(1) 4,871,358 4,968,228 — — 4,968,228 Accrued interest receivable 16,550 16,550 — 16,550 — Company-owned life insurance 108,958 108,958 — 108,958 — Securities held-to-maturity 1,678 1,678 — — 1,678 Financial liabilities: Deposits: Savings and demand deposits $ 3,372,466 $ 3,372,466 $ — $ 3,372,466 $ — Time deposits(2) 1,780,332 1,781,278 — 1,781,278 — Total deposits 5,152,798 5,153,744 — 5,153,744 — Short-term borrowings 334,480 334,480 — 334,480 — Long-term debt 399,476 394,546 — 394,546 — Accrued interest payable 3,308 3,308 — 3,308 — Deferred compensation plan liabilities 3,116 3,116 — 3,116 — (1) Included $13.8 million of impaired loans recorded at fair value on a nonrecurring basis and $24.4 million of loans recorded at fair value on a recurring basis. (2) Includes $61.2 million of other brokered funds. Estimated Fair Value (Dollars in thousands) Carrying Value Total Level 1 Level 2 Level 3 December 31, 2015 Financial assets: Cash and cash equivalents $ 387,323 $ 387,323 $ 74,734 $ 312,589 $ — Federal Home Loan Bank stock 29,621 N/A Net loans(1) 4,752,747 4,827,556 — — 4,827,556 Accrued interest receivable 15,646 15,646 — 15,646 — Company-owned life insurance 107,065 107,065 — 107,065 — Securities held-to-maturity 1,678 1,678 — — 1,678 Financial liabilities: Deposits: Savings and demand deposits $ 3,343,478 $ 3,343,478 $ — $ 3,343,478 $ — Time deposits(2) 1,671,103 1,670,058 — 1,670,058 — Total deposits 5,014,581 5,013,536 — 5,013,536 — Short-term borrowings 348,998 348,998 — 348,998 — Long-term debt 464,057 456,746 — 456,746 — Accrued interest payable 3,568 3,568 — 3,568 — Deferred compensation plan liabilities 1,982 1,982 — 1,982 — (1) Included $20.1 million of impaired loans recorded at fair value on a nonrecurring basis and $ 22.2 million of loans recorded at fair value on a recurring basis. (2) Includes $61.2 million of other brokered funds.

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Summary of the Company's investment securities available-for-sale	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 Gross Gross Fair March 31, 2016 Securities available-for-sale: U.S. government sponsored agency obligations $ 69,398 $ 553 $ — $ 69,951 Obligations of state and political subdivisions: Taxable 1,318 44 — 1,362 Tax-exempt 297,098 7,674 (441 ) 304,331 SBA Pools 26,286 446 (3 ) 26,729 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 304,808 4,932 (48 ) 309,692 Privately issued 97,468 235 (252 ) 97,451 Privately issued commercial mortgage-backed securities 22,465 — (81 ) 22,384 Corporate debt securities 114,915 734 (1,006 ) 114,643 Total securities available-for-sale $ 933,756 $ 14,618 $ (1,831 ) $ 946,543 Amortized Gross Gross Fair December 31, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 59,414 $ 614 $ (6 ) $ 60,022 Obligations of state and political subdivisions: Taxable 1,318 3 — 1,321 Tax-exempt 282,366 5,312 (470 ) 287,208 SBA Pools 27,561 368 (4 ) 27,925 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 308,396 2,014 (1,104 ) 309,306 Privately issued 90,084 — (634 ) 89,450 Privately issued commercial mortgage-backed securities 13,826 — (121 ) 13,705 Corporate debt securities 102,284 127 (578 ) 101,833 Total securities available-for-sale $ 885,249 $ 8,438 $ (2,917 ) $ 890,770
Held-to-maturity securities	Amortized Gross Gross Fair Securities held-to-maturity $ 1,678 $ — $ — $ 1,678 Amortized Gross Gross Fair Securities held-to-maturity $ 1,678 $ — $ — $ 1,678
Schedule of proceeds from sales of securities and the associated gains and losses recorded in earnings	Proceeds from sales of securities and the associated gains and losses recorded in earnings are listed below: For the three months ended (Dollars in thousands) 2016 2015 Proceeds $ 14,977 $ 24,615 Gross gains 333 3 Gross losses — (110 )
Schedule of amortized cost and fair value of debt securities by contractual maturity	March 31, 2016 (Dollars in thousands) Amortized Cost Fair Value Securities with contractual maturities: Within one year $ 5,589 $ 5,603 After one year through five years 146,712 148,537 After five years through ten years 217,841 221,816 After ten years 563,614 570,587 Total securities available-for-sale $ 933,756 $ 946,543 Securities held-to-maturity: After one year through five years 1,678 1,678 Total securities held-to-maturity $ 1,678 $ 1,678
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 March 31, 2016 Obligations of state and political subdivisions: Tax-exempt $ 38,553 $ (211 ) $ 16,537 $ (230 ) $ 55,090 $ (441 ) SBA Pools 1,468 (3 ) — — 1,468 (3 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 13,919 (48 ) — — 13,919 (48 ) Privately issued 49,201 (252 ) — — 49,201 (252 ) Privately issued commercial mortgage-backed securities 22,384 (81 ) — — 22,384 (81 ) Corporate debt securities 32,649 (956 ) 403 (50 ) 33,052 (1,006 ) Total securities available-for-sale $ 158,174 $ (1,551 ) $ 16,940 $ (280 ) $ 175,114 $ (1,831 ) December 31, 2015 U.S. government sponsored agency obligations $ 9,994 $ (6 ) $ — $ — $ 9,994 $ (6 ) Obligations of state and political subdivisions: Tax-exempt 46,062 (357 ) 6,957 (113 ) 53,019 (470 ) SBA Pools 1,521 (4 ) — — 1,521 (4 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 118,509 (1,104 ) — — 118,509 (1,104 ) Privately issued 89,450 (634 ) — — 89,450 (634 ) Privately issued commercial mortgage-backed securities 13,706 (121 ) — — 13,706 (121 ) Corporate debt securities 74,494 (558 ) 431 (20 ) 74,925 (578 ) Total securities available-for-sale $ 353,736 $ (2,784 ) $ 7,388 $ (133 ) $ 361,124 $ (2,917 )

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2016
Loans
Schedule of loans	Loans at March 31, 2016 and December 31, 2015 were as follows: (Dollars in thousands) Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total loans March 31, 2016 Commercial real estate $ 231,646 $ 1,385,155 $ 1,616,801 Residential real estate 257,795 1,347,145 1,604,940 Commercial and industrial 22,205 1,257,197 1,279,402 Real estate construction 9,283 225,724 235,007 Consumer 8,906 178,680 187,586 Total $ 529,835 $ 4,393,901 $ 4,923,736 (1) December 31, 2015 Commercial real estate $ 250,497 $ 1,317,600 $ 1,568,097 Residential real estate 273,845 1,273,954 1,547,799 Commercial and industrial 24,724 1,232,682 1,257,406 Real estate construction 10,783 230,820 241,603 Consumer 9,417 182,378 191,795 Total $ 569,266 $ 4,237,434 $ 4,806,700 (1) (1) Includes net deferred costs totaling $3.4 million and $1.9 million at March 31, 2016 and December 31, 2015 , respectively.
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 (Dollars in thousands) 2016 2015 Balance at beginning of period $ 223,214 $ 277,058 Additions due to acquisitions — 5,268 Discount accretion (14,873 ) (20,964 ) Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations 15,725 29,431 Other activity, net (1) (12,599 ) (11,968 ) Balance at end of period $ 211,467 $ 278,825 (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 purchased credit impaired loans accounted for under ASC 310-30 at March 31, 2016 and December 31, 2015 . (Dollars in thousands) March 31, December 31, Contractual cash flows $ 962,665 $ 1,019,407 Non-accretable difference (221,363 ) (226,927 ) Accretable yield (211,467 ) (223,214 ) Loans accounted for under ASC 310-30 $ 529,835 $ 569,266
Schedule of information as to nonperforming assets	Information as to nonperforming assets was as follows: (Dollars in thousands) March 31, December 31, Nonperforming assets Nonaccrual loans Commercial real estate $ 15,262 $ 16,798 Residential real estate 16,939 18,390 Commercial and industrial 20,506 21,668 Real estate construction 232 413 Consumer 160 206 Total nonaccrual loans 53,099 57,475 Other real estate owned and repossessed assets (1) 26,434 28,157 Total nonperforming assets 79,533 85,632 Loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 Residential real estate $ 141 $ 58 Commercial and industrial 13 14 Consumer 230 225 Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 $ 384 $ 297 (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 is as follows: (Dollars in thousands) March 31, December 31, Nonaccrual loans $ 53,099 $ 57,475 Performing troubled debt restructurings: Commercial real estate 16,350 15,340 Residential real estate 7,240 5,749 Commercial and industrial 3,777 3,438 Real estate construction 420 420 Consumer 250 242 Total performing troubled debt restructurings 28,037 25,189 Total impaired loans $ 81,136 $ 82,664
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 months ended March 31, 2016 and 2015 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 Net charge-offs (recoveries) Provision (benefit) for loan losses For the three months ended March 31, 2016 Commercial real estate $ — $ — $ 435 $ — 5 $ 435 $ — $ (2 ) Residential real estate 229 123 663 52 14 1,067 55 48 Commercial and industrial 2,627 — 107 862 9 3,596 — (164 ) Consumer 7 — — — 1 7 2 — Total loans $ 2,863 $ 123 $ 1,205 $ 914 29 $ 5,105 $ 57 $ (118 ) (1) Loan forgiveness related to loans modified in TDRs for the three months ended March 31, 2016 totaled $142 thousand . Concession type (1) Financial effects of modification (Dollars in thousands) Principal deferral Interest rate Forbearance agreement Total number of loans Total recorded investment at March 31, 2015 Net charge-offs (recoveries) Provision for loan losses For the three months ended March 31, 2015 Commercial real estate $ — $ 350 $ 1,090 5 $ 1,440 $ (37 ) $ 208 Residential real estate 949 688 — 13 1,637 (1 ) 40 Commercial and industrial 340 857 26 9 1,223 — 182 Real estate construction — — 147 1 147 — — Consumer 15 — — 1 15 — — Total loans $ 1,304 $ 1,895 $ 1,263 29 $ 4,462 $ (38 ) $ 430 (1) There was no loan forgiveness related to loans modified in TDRs for the three months ended March 31, 2015 .
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 months ended March 31, 2016 and 2015 , including the recorded investment as of March 31, 2016 and 2015 . 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 March 31, 2016 For the three months ended March 31, 2015 (Dollars in thousands) Total number Total recorded Charged off following Total number Total recorded Charged off following Commercial real estate 5 $ 986 $ — 12 $ 2,324 $ 471 Residential real estate 6 379 — 26 1,931 29 Commercial and industrial 4 219 — 8 220 — Consumer 1 — 3 1 78 — Total loans 16 $ 1,584 $ 3 47 $ 4,553 $ 500
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 Total March 31, 2016 Commercial real estate $ 1,454,921 $ 74,382 $ 87,498 $ — $ 1,616,801 Commercial and industrial 1,182,486 44,424 52,492 — 1,279,402 Real estate construction 229,576 834 4,597 — 235,007 Total $ 2,866,983 $ 119,640 $ 144,587 $ — $ 3,131,210 December 31, 2015 Commercial real estate $ 1,408,238 $ 60,130 $ 99,343 $ 386 $ 1,568,097 Commercial and industrial 1,177,354 24,129 55,923 — 1,257,406 Real estate construction 235,479 259 5,865 — 241,603 Total $ 2,821,071 $ 84,518 $ 161,131 $ 386 $ 3,067,106
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 March 31, 2016 Residential real estate $ 1,588,001 $ 16,939 $ 1,604,940 Consumer 187,426 160 187,586 Total $ 1,775,427 $ 17,099 $ 1,792,526 December 31, 2015 Residential real estate $ 1,529,409 $ 18,390 $ 1,547,799 Consumer 191,589 206 191,795 Total $ 1,720,998 $ 18,596 $ 1,739,594
Excluded from ASC 310-30 accounting
Loans
Schedule of loan delinquency	Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows: March 31, 2016 (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 Loans, excluding loans accounted for under ASC 310-30 Commercial real estate $ 2,764 $ 1,874 $ 11,354 $ 15,992 $ 1,369,163 $ 1,385,155 $ — Residential real estate 8,308 1,016 7,517 16,841 1,330,304 1,347,145 141 Commercial and industrial 3,663 2,069 13,250 18,982 1,238,215 1,257,197 13 Real estate construction 729 — 65 794 224,930 225,724 — Consumer 678 265 240 1,183 177,497 178,680 230 Total $ 16,142 $ 5,224 $ 32,426 $ 53,792 $ 4,340,109 $ 4,393,901 $ 384 December 31, 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 Loans, excluding loans accounted for under ASC 310-30 Commercial real estate $ 2,662 $ 1,378 $ 13,520 $ 17,560 $ 1,300,040 $ 1,317,600 $ — Residential real estate 10,582 2,539 7,377 20,498 1,253,456 1,273,954 58 Commercial and industrial 9,079 2,099 4,955 16,133 1,216,549 1,232,682 14 Real estate construction 2,046 — 304 2,350 228,470 230,820 — Consumer 1,287 402 287 1,976 180,402 182,378 225 Total $ 25,656 $ 6,418 $ 26,443 $ 58,517 $ 4,178,917 $ 4,237,434 $ 297

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2016
Loans and Leases Receivable, Allowance [Abstract]
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 March 31, 2016 Loans individually evaluated for impairment Commercial real estate $ 16,128 $ 15,484 $ 31,612 $ 44,811 $ 2,334 Residential real estate 16,617 7,562 24,179 29,961 1,948 Commercial and industrial 13,505 10,778 24,283 26,711 1,985 Real estate construction 422 230 652 881 129 Consumer 311 99 410 622 42 Total loans individually evaluated for impairment $ 46,983 $ 34,153 $ 81,136 $ 102,986 $ 6,438 December 31, 2015 Loans individually evaluated for impairment Commercial real estate $ 12,506 $ 19,632 $ 32,138 $ 46,099 $ 2,647 Residential real estate 13,304 10,835 24,139 30,409 2,729 Commercial and industrial 11,661 13,445 25,106 27,883 2,577 Real estate construction 402 431 833 1,369 158 Consumer 319 129 448 789 36 Total loans individually evaluated for impairment $ 38,192 $ 44,472 $ 82,664 $ 106,549 $ 8,147 For the three months ended For the three months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Loans individually evaluated for impairment Commercial real estate $ 32,306 $ 547 $ 42,397 $ 1,256 Residential real estate 24,643 309 25,194 248 Commercial and industrial 24,880 192 8,283 212 Real estate construction 658 14 1,221 18 Consumer 436 9 591 20 Total loans individually evaluated for impairment $ 82,923 $ 1,071 $ 77,686 $ 1,754
Schedule showing the average recorded investment and interest income recognized on loans	For the three months ended For the three months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Loans individually evaluated for impairment Commercial real estate $ 32,306 $ 547 $ 42,397 $ 1,256 Residential real estate 24,643 309 25,194 248 Commercial and industrial 24,880 192 8,283 212 Real estate construction 658 14 1,221 18 Consumer 436 9 591 20 Total loans individually evaluated for impairment $ 82,923 $ 1,071 $ 77,686 $ 1,754
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 loans were as follows: Loans accounted for under ASC 310-30 (Dollars in thousands) Commercial Residential Commercial Real estate Consumer Total For the three months ended March 31, 2016 Allowance for loan losses - loans accounted for under ASC 310-30: Balance at beginning of period $ 11,030 $ 7,947 $ 1,487 $ 1,678 $ 124 $ 22,266 Transfer to loans excluded from ASC 310-30 accounting (1) (83 ) (58 ) (24 ) (227 ) — (392 ) Benefit for loan losses (1,257 ) (1,513 ) (36 ) (381 ) (36 ) (3,223 ) Gross charge-offs (1,764 ) (735 ) (734 ) (73 ) (6 ) (3,312 ) Recoveries 426 1,612 385 68 19 2,510 Net (charge-offs) recoveries (1,338 ) 877 (349 ) (5 ) 13 (802 ) Ending allowance for loan losses $ 8,352 $ 7,253 $ 1,078 $ 1,065 $ 101 $ 17,849 For the three months ended March 31, 2015 Allowance for loan losses - loans accounted for under ASC 310-30: Balance at beginning of period $ 17,558 $ 9,674 $ 3,264 $ 2,030 $ 206 $ 32,732 Transfer to loans excluded from ASC 310-30 accounting (1) (30 ) (48 ) — — — (78 ) Provision (benefit) for loan losses (2,547 ) 950 168 231 118 (1,080 ) Gross charge-offs (4,271 ) (1,564 ) (678 ) (531 ) (195 ) (7,239 ) Recoveries 3,571 248 365 502 39 4,725 Net charge-offs (700 ) (1,316 ) (313 ) (29 ) (156 ) (2,514 ) Ending allowance for loan losses $ 14,281 $ 9,260 $ 3,119 $ 2,232 $ 168 $ 29,060 (1) Primarily due to loans restructured that qualify as TDRs. Loans excluded from ASC 310-30 accounting (Dollars in thousands) Commercial Residential Commercial Real estate Consumer Total For the three months ended March 31, 2016 Allowance for loan losses - loans excluded from ASC 310-30 accounting: Balance at beginning of period $ 8,388 $ 6,485 $ 14,831 $ 1,021 $ 962 $ 31,687 Transfer in (1) 83 58 24 227 — 392 Provision (benefit) for loan losses 527 (331 ) 1,673 (210 ) 453 2,112 Gross charge-offs (410 ) (555 ) (244 ) (27 ) (504 ) (1,740 ) Recoveries 964 632 218 199 65 2,078 Net (charge-offs) recoveries 554 77 (26 ) 172 (439 ) 338 Ending allowance for loan losses $ 9,552 $ 6,289 $ 16,502 $ 1,210 $ 976 $ 34,529 For the three months ended March 31, 2015 Allowance for loan losses - loans excluded from ASC 310-30 accounting: Balance at beginning of period $ 7,234 $ 6,498 $ 7,149 $ 655 $ 904 $ 22,440 Transfer in (1) 30 48 — — — 78 Provision (benefit) for loan losses 5 (259 ) 3,043 (147 ) 431 3,073 Gross charge-offs (1,158 ) (897 ) (1,406 ) (12 ) (286 ) (3,759 ) Recoveries 673 387 382 32 99 1,573 Net (charge-offs) recoveries (485 ) (510 ) (1,024 ) 20 (187 ) (2,186 ) Ending allowance for loan losses $ 6,784 $ 5,777 $ 9,168 $ 528 $ 1,148 $ 23,405 (1) Primarily due to loans restructured that qualify as TDRs. Total loans (Dollars in thousands) Commercial Residential Commercial Real estate Consumer Total As of March 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 2,334 $ 1,948 $ 1,985 $ 129 $ 42 $ 6,438 Collectively evaluated for impairment 7,218 4,341 14,517 1,081 934 28,091 Accounted for under ASC 310-30 8,352 7,253 1,078 1,065 101 17,849 Total allowance for loan losses $ 17,904 $ 13,542 $ 17,580 $ 2,275 $ 1,077 $ 52,378 Balance of loans: Individually evaluated for impairment $ 31,612 $ 24,179 $ 24,283 $ 652 $ 410 $ 81,136 Collectively evaluated for impairment 1,353,543 1,322,966 1,232,914 225,072 178,270 4,312,765 Accounted for under ASC 310-30 231,646 257,795 22,205 9,283 8,906 529,835 Total loans $ 1,616,801 $ 1,604,940 $ 1,279,402 $ 235,007 $ 187,586 $ 4,923,736 As of December 31, 2015 Allowance for loan losses: Individually evaluated for impairment $ 2,647 $ 2,729 $ 2,577 $ 158 $ 36 $ 8,147 Collectively evaluated for impairment 5,741 3,756 12,254 863 926 23,540 Accounted for under ASC 310-30 11,030 7,947 1,487 1,678 124 22,266 Total allowance for loan losses $ 19,418 $ 14,432 $ 16,318 $ 2,699 $ 1,086 $ 53,953 Balance of loans: Individually evaluated for impairment $ 32,138 $ 24,139 $ 25,106 $ 833 $ 448 $ 82,664 Collectively evaluated for impairment 1,285,462 1,249,815 1,207,576 229,987 181,930 4,154,770 Accounted for under ASC 310-30 250,497 273,845 24,724 10,783 9,417 569,266 Total loans $ 1,568,097 $ 1,547,799 $ 1,257,406 $ 241,603 $ 191,795 $ 4,806,700

OTHER REAL ESTATE OWNED AND R34

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
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: (Dollars in thousands) Other real estate Repossessed Balance at January 1, 2016 $ 22,930 $ 5,329 Transfers in (1) 3,342 792 Capitalized expenditures — 229 Payments received — (359 ) Disposals (4,145 ) (387 ) Write-downs (1,209 ) (311 ) Change in valuation allowance 325 — Balance at March 31, 2016 $ 21,243 $ 5,293 Balance at January 1, 2015 $ 38,908 $ 9,835 Additions due to acquisitions 1,260 — Additions due to the adoption of ASU 2014-04 (2) 540 — Transfers in (1) 5,709 397 Capitalized expenditures — 1,116 Payments received — (1,401 ) Disposals (9,351 ) (177 ) Write-downs (1,362 ) (194 ) Change in valuation allowance — (2,359 ) Balance at March 31, 2015 $ 35,704 $ 7,217 (1) 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. (2) 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.
Schedule of activity in the valuation allowance of repossessed assets	Activity in the valuation allowance for other real estate owned and repossessed assets during the three months ended March 31, 2016 and 2015 is summarized below. Valuation allowance (Dollars in thousands) Other real estate owned Repossessed assets For the three months ended March 31, 2016 Beginning balance $ 325 $ 5,104 Write-downs (325 ) — Ending Balance $ — $ 5,104 For the three months ended March 31, 2015 Beginning balance $ — $ 460 Provision for valuation allowance — 2,359 Ending Balance $ — $ 2,819
Schedule of income and expenses related to other real estate owned	Income and expenses related to other real estate owned and repossessed assets, recorded as a component of “Other expense” in the Consolidated Statements of Income, were as follows: (Dollars in thousands) Other real estate owned Repossessed assets For the three months ended March 31, 2016 Net gain (loss) on sale $ 1,555 $ (64 ) Write-downs (1,209 ) (311 ) Relief of valuation allowance 325 — Net operating expenses (376 ) (84 ) Total $ 295 $ (459 ) For the three months ended March 31, 2015 Net gain (loss) on sale $ 1,415 $ (14 ) Write-downs (1,362 ) (194 ) Provision for valuation allowance — (2,359 ) Net operating expenses (295 ) (25 ) Total $ (242 ) $ (2,592 )

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
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) March 31, December 31, Gross carrying amount $ 23,068 $ 23,068 Accumulated amortization (10,872 ) (10,260 ) Net carrying amount $ 12,196 $ 12,808

LOAN SERVICING RIGHTS (Tables)

LOAN SERVICING RIGHTS (Tables)	3 Months Ended
	Mar. 31, 2016
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 Mortgage Total For the three months ended March 31, 2016 Fair value, beginning of period $ 475 $ 57,638 $ 58,113 Additions from loans sold with servicing retained — 1,700 1,700 Changes in fair value due to: Reductions from loans paid off during the period (14 ) (1,826 ) (1,840 ) Changes due to valuation inputs or assumptions(1) (30 ) (6,595 ) (6,625 ) Fair value, end of period $ 431 $ 50,917 $ 51,348 Principal balance of loans serviced $ 94,442 $ 5,750,783 $ 5,845,225 For the three months ended March 31, 2015 Fair value, beginning of period $ 691 $ 69,907 $ 70,598 Additions from loans sold with servicing retained — 2,915 2,915 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 (29 ) (2,289 ) (2,318 ) Changes due to valuation inputs or assumptions(1) (41 ) (4,043 ) (4,084 ) Fair value, end of period $ 621 $ 53,788 $ 54,409 Principal balance of loans serviced $ 203,491 $ 5,799,055 $ 6,002,546 (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 three months ended March 31, 2015 in connection with the sale of $1.2 billion of principal balance of loans serviced.
Schedule of assumptions included in loan servicing rights	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 March 31, 2016 and December 31, 2015 . Commercial Real Estate Mortgage As of March 31, 2016 Prepayment speed 0.00 - 50.00% 0.00 - 38.10% Weighted average (“WA”) discount rate 19.23 % 9.13 % WA cost to service/per year $ 472 $ 61 WA ancillary income/per year N/A 36 WA float range 0.56 % 1.05 - 1.55% As of December 31, 2015 Prepayment speed 0.00 - 50.00% 0.00 - 34.56% WA discount rate 19.18 % 9.13 % WA cost to service/per year $ 472 $ 61 WA ancillary income/per year N/A 36 WA float range 0.56 % 0.56 - 1.68%

DERIVATIVE INSTRUMENTS AND BA37

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Tables)	3 Months Ended
	Mar. 31, 2016
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. March 31, 2016 December 31, 2015 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 $ 37,000 $ — $ 1,825 $ 37,000 $ 105 $ 397 Total risk management purposes 37,000 — 1,825 37,000 105 397 Customer-initiated and mortgage banking activities: Forward contracts related to mortgage loans to be delivered for sale 115,533 — 610 105,711 — 38 Interest rate lock commitments 114,546 2,908 — 62,081 1,220 — Customer-initiated derivatives 417,491 9,761 9,998 354,699 4,143 4,144 Total customer-initiated and mortgage banking activities 647,570 12,669 10,608 522,491 5,363 4,182 Total gross derivatives $ 684,570 $ 12,669 $ 12,433 $ 559,491 $ 5,468 $ 4,579 (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 $460 thousand at March 31, 2016 and $208 thousand at December 31, 2015 .
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 (Dollars in thousands) Location of Gain (Loss) 2016 2015 Forward contracts related to mortgage loans to be delivered for sale Net gain on sale of loans $ (1,975 ) $ (1,144 ) Interest rate lock commitments Net gain on sale of loans 1,688 2,162 Customer-initiated derivatives Other noninterest income (236 ) 84 Total gain (loss) recognized in income $ (523 ) $ 1,102
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 months ended March 31, 2016 and 2015 . (Dollars in thousands) Amount of gain Amount of gain (loss) Amount of gain For the three months ended March 31, 2016 Interest rate swaps designated as cash flow hedges $ (1,681 ) $ 148 $ — For the three months ended March 31, 2015 Interest rate swaps designated as cash flow hedges $ (325 ) $ 88 $ —
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 (Dollars in thousands) Gross Gross amounts Net amounts Financial Collateral Net March 31, 2016 Offsetting derivative assets Derivative assets $ 9,761 $ — $ 9,761 $ (9,761 ) $ 9,018 $ 9,018 Offsetting derivative liabilities Derivative liabilities 11,823 — 11,823 (9,761 ) 2,062 — December 31, 2015 Offsetting derivative assets Derivative assets $ 4,248 $ — $ 4,248 $ (4,248 ) $ 5,887 $ 5,887 Offsetting derivative liabilities Derivative liabilities 4,541 — 4,541 (4,248 ) 293 —
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 (Dollars in thousands) Gross Gross amounts Net amounts Financial Collateral Net March 31, 2016 Offsetting derivative assets Derivative assets $ 9,761 $ — $ 9,761 $ (9,761 ) $ 9,018 $ 9,018 Offsetting derivative liabilities Derivative liabilities 11,823 — 11,823 (9,761 ) 2,062 — December 31, 2015 Offsetting derivative assets Derivative assets $ 4,248 $ — $ 4,248 $ (4,248 ) $ 5,887 $ 5,887 Offsetting derivative liabilities Derivative liabilities 4,541 — 4,541 (4,248 ) 293 —

COMMITMENTS, CONTINGENCIES AN38

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables)	3 Months Ended
	Mar. 31, 2016
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: March 31, 2016 December 31, 2015 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Commitments to extend credit $ 663,579 $ 615,156 $ 1,278,735 $ 658,268 $ 489,102 $ 1,147,370 Standby letters of credit 61,926 4,002 65,928 61,300 4,801 66,101 Total commitments $ 725,505 $ 619,158 $ 1,344,663 $ 719,568 $ 493,903 $ 1,213,471

SHORT-TERM BORROWINGS AND LON39

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of short-term borrowings and long-term debt	The remaining contract maturity, excluding purchase accounting adjustments, of securities sold under agreement to repurchase, both long-term and short-term, is as follows: March 31, 2016 Remaining Contractual Maturities of the Agreements (Dollars in thousands) Overnight and continuous Up to 30 Days 30-90 Days Greater than 90 Days Total Securities sold under agreements to repurchase $ 21,980 $ — $ — $ 50,000 $ 71,980 Total borrowings $ 21,980 $ — $ — $ 50,000 $ 71,980 Amounts related to securities sold under agreements to repurchase not included in offsetting disclosure in Footnote 10 $ 71,980 The following table presents the components of the Company’s short-term borrowings and long-term debt. March 31, 2016 December 31, 2015 (Dollars in thousands) Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings: FHLB advances: 0.68% - 0.81% fixed-rate notes $ 225,000 0.72 % $ 300,000 0.58 % FHLB advances: 0.75% variable-rate notes 50,000 0.75 — — Securities sold under agreements to repurchase: 0.10% variable-rate notes 21,980 0.10 18,998 0.10 Holding company line of credit: floating-rate based on one-month LIBOR plus 1.75% 37,500 2.19 30,000 2.18 Total short-term borrowings 334,480 0.85 348,998 0.69 Long-term debt: FHLB advances: 0.50% - 7.44% fixed-rate notes due 2016 to 2027 (2) 329,639 1.33 393,851 1.34 Securities sold under agreements to repurchase: 4.11% - 4.30% fixed-rate notes due 2016 to 2037 (3) 54,388 4.19 54,800 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) 10,902 2.86 10,865 2.65 Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due in 2032 (5) 4,547 3.88 4,541 3.58 Total long-term debt 399,476 1.79 464,057 1.73 Total short-term borrowings and long-term debt $ 733,956 1.36 % $ 813,055 1.28 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The March 31, 2016 balance includes advances payable of $325.8 million and purchase accounting premiums of $3.8 million . The December 31, 2015 balance includes advances payable of $389.6 million and purchase accounting premiums of $4.3 million . (3) The March 31, 2016 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $4.4 million . The December 31, 2015 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $4.8 million . (4) The March 31, 2016 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.1 million . The December 31, 2015 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.1 million . (5) The March 31, 2016 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $453 thousand . The December 31, 2015 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $459 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 March 31, (Dollars in thousands) 2016 2015 FHLB advances: Average daily balance $ 295,879 $ 18,444 Average interest rate during the period 0.75 % 0.29 % Maximum month-end balance $ 350,000 $ 50,000 Securities sold under agreement to repurchase: Average daily balance $ 19,885 $ 20,439 Average interest rate during the period 0.10 % 0.10 % Maximum month-end balance $ 21,980 $ 22,454 Federal funds purchased: Average daily balance $ — $ 1,400 Average interest rate during the period N/A 0.31 % Maximum month-end balance $ — $ 126,000 Holding company line of credit: Average daily balance $ 30,165 $ 9,556 Average interest rate during the period 2.18 % 3.17 % Maximum month-end balance $ 37,500 $ 20,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2016
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 at the federal statutory rate to the Company’s provision for income taxes and effective tax rate follows. For the three months ended March 31, 2016 2015 (Dollars in thousands) Amount Rate Amount Rate Tax based on federal statutory rate $ 7,897 35.0 % $ 4,856 35.0 % Effect of: Tax exempt income (762 ) (3.4 ) (631 ) (4.5 ) State taxes, net of federal benefit 180 0.8 266 1.9 Change in valuation allowance (270 ) (1.2 ) — — Tax settlement with the Internal Revenue Service (4,306 ) (19.1 ) — — Transaction costs 266 1.2 — — Deferred tax benefit — — 29 0.2 Other, net (125 ) (0.6 ) (79 ) (0.6 ) Income tax expense $ 2,880 12.7 % $ 4,441 32.0 %

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of activity in the Plan	Activity in the Plan during the three months ended March 31, 2016 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, 2016 7,235 $ 6.97 Exercised (1) (551 ) 6.60 Outstanding at March 31, 2016 6,684 7.00 5.49 $ 74,130 Options fully vested 6,684 7.00 5.49 74,130 Exercisable at March 31, 2016 6,684 7.00 5.49 74,130 (1) Options exercised during the three months ended March 31, 2016 had a weighted average fair value of $16.18 , 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, 2016 726 $ 14.82 Granted 326 16.65 Forfeited (2 ) 15.77 Nonvested at March 31, 2016 1,050 $ 15.38

REGULATORY CAPITAL MATTERS (Tab

REGULATORY CAPITAL MATTERS (Tables)	3 Months Ended
	Mar. 31, 2016
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 For Capital Adequacy Purposes Plus Capital Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2016 Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 730,134 13.1 % $ 444,723 8.0 % $ 479,467 8.6 % N/A N/A Talmer Bank and Trust 756,388 13.7 442,723 8.0 475,928 8.6 $ 553,404 10.0 % Common equity tier 1 capital Talmer Bancorp, Inc. (Consolidated) 675,500 12.2 250,157 4.5 284,901 5.1 N/A N/A Talmer Bank and Trust 701,754 12.7 249,032 4.5 282,236 5.1 359,713 6.5 Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 675,500 12.2 333,542 6.0 368,286 6.6 N/A N/A Talmer Bank and Trust 701,754 12.7 332,042 6.0 365,247 6.6 442,723 8.0 Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 675,500 10.3 262,349 4.0 262,349 4.0 N/A N/A Talmer Bank and Trust 701,754 10.7 263,103 4.0 263,103 4.0 328,879 5.0 December 31, 2015 Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 718,666 13.0 % $ 442,170 8.0 % N/A N/A N/A N/A Talmer Bank and Trust 740,338 13.5 439,255 8.0 N/A N/A $ 549,068 10.0 % Common equity tier 1 capital Talmer Bancorp, Inc. (Consolidated) 662,668 12.0 248,721 4.5 N/A N/A N/A N/A Talmer Bank and Trust 684,340 12.5 247,081 4.5 N/A N/A 356,894 6.5 Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 662,668 12.0 331,628 6.0 N/A N/A N/A N/A Talmer Bank and Trust 684,340 12.5 329,441 6.0 N/A N/A 439,255 8.0 Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 662,668 10.2 259,694 4.0 N/A N/A N/A N/A Talmer Bank and Trust 684,340 10.5 259,784 4.0 N/A N/A 324,730 5.0

PARENT COMPANY FINANCIAL STAT43

PARENT COMPANY FINANCIAL STATEMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Balance Sheets	Balance Sheets - Parent Company (Dollars in thousands) March 31, December 31, Assets Cash and cash equivalents $ 13,643 $ 12,581 Investment in subsidiary 778,322 750,713 Income tax benefit 10,006 8,504 Other assets 891 994 Total assets $ 802,862 $ 772,792 Liabilities Short-term borrowings $ 37,500 $ 30,000 Long-term debt 15,448 15,406 Accrued expenses and other liabilities 1,244 2,171 Total liabilities 54,192 47,577 Shareholders’ equity 748,670 725,215 Total liabilities and shareholders’ equity $ 802,862 $ 772,792
Statements of Income	Statements of Income and Comprehensive Income - Parent Company For the three months ended March 31, (Dollars in thousands) 2016 2015 Income Dividend income from subsidiary $ — $ 15,000 Other noninterest income 5 5 Total income 5 15,005 Expenses Salary and employee benefits 1,688 1,221 Merger and acquisition expense 2,874 996 Professional service fees 515 377 Insurance expense 115 80 Marketing expense 15 14 Interest on short-term borrowings 167 74 Interest on long-term debt 198 162 Other 53 114 Total expenses 5,625 3,038 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries (5,620 ) 11,967 Income tax benefit 1,814 653 Equity in (over) under distributed earnings of subsidiaries 23,489 (3,187 ) Net income $ 19,683 $ 9,433 Total comprehensive income, net of tax $ 23,410 $ 12,223
Statements of Cash Flows	Statements of Cash Flows - Parent Company For the three months ended March 31, (Dollars in thousands) 2016 2015 Cash flows from operating activities Net income $ 19,683 $ 9,433 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries (23,489 ) 3,187 Stock-based compensation expense 305 143 Increase in income tax benefit (1,502 ) (736 ) Decrease in other assets, net 103 100 Decrease in accrued expenses and other liabilities, net (885 ) (2,633 ) Net cash from operating activities (5,785 ) 9,494 Cash flows from investing activities Cash used in acquisitions — (13,323 ) Refund of investment — 2,225 Net cash used in investing activities — (11,098 ) Cash flows from financing activities Issuance of common stock and restricted stock awards, including tax benefit 2,667 266 Repurchase of warrants to repurchase 2.5 million shares, at fair value — (19,892 ) Cash dividends paid on common stock(1) (3,320 ) (706 ) Draw on senior unsecured line of credit 7,500 20,000 Repayment of long-term debt — (3,500 ) Net cash from financing activities 6,847 (3,832 ) Net increase (decrease) in cash and cash equivalents 1,062 (5,436 ) Beginning cash and cash equivalents 12,581 9,497 Ending cash and cash equivalents $ 13,643 $ 4,061 (1) $0.05 per share and $0.01 per share for the three months ended March 31, 2016 and 2015 , respectively.

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2016
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 (In thousands, except per share data) 2016 2015 Net income $ 19,683 $ 9,433 Net income allocated to participating securities 249 53 Net income allocated to common shareholders (1) $ 19,434 $ 9,380 Weighted average common shares - issued 66,502 70,619 Average unvested restricted share awards (866 ) (403 ) Weighted average common shares outstanding - basic 65,636 70,216 Effect of dilutive securities Employee and director stock options 4,054 3,962 Warrants 16 925 Weighted average common shares outstanding - diluted 69,706 75,103 EPS available to common shareholders Basic $ 0.30 $ 0.13 Diluted $ 0.28 $ 0.12 (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 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 options or warrants during the three months ended March 31, 2016 and no outstanding antidilutive warrants during the three months ended March 31, 2015. (Shares in thousands) For the three months ended March 31, 2015 Average outstanding options 35 Outstanding exercise prices: Low end $ 14.44 High end $ 14.44

ACCUMULATED OTHER COMPREHENSI45

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Mar. 31, 2016
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 For the three months ended March 31, 2016 Beginning balance $ 3,589 $ (190 ) $ 3,399 Other comprehensive income (loss) before reclassifications 4,939 (1,092 ) 3,847 Amounts reclassified from accumulated other comprehensive income (216 ) (1) 96 (2) (120 ) Net current period other comprehensive income (loss) 4,723 (996 ) 3,727 Ending balance $ 8,312 $ (1,186 ) $ 7,126 For the three months ended March 31, 2015 Beginning balance $ 3,995 $ (145 ) $ 3,850 Other comprehensive income (loss) before reclassifications 2,875 (211 ) 2,664 Amounts reclassified from accumulated other comprehensive income 69 (1) 57 (2) 126 Net current period other comprehensive income (loss) 2,944 (154 ) 2,790 Ending balance $ 6,939 $ (299 ) $ 6,640 (1) Amounts are included in “Net gain (loss) on sales of securities” in the Consolidated Statements of Income within total noninterest income, and were $333 thousand and $ (107) thousand for the three months ended March 31, 2016 and 2015 , respectively. Income tax expense (benefit) associated with the reclassification adjustments for the three months ended March 31, 2016 and 2015 was $ (117) thousand and $38 thousand , respectively, and are included in “Income tax provision” in the Consolidated Statements of Income. (2) Amounts are included in “Other brokered funds” in the Consolidated Statements of Income within total interest expense and were $148 thousand and $88 thousand for the three months ended March 31, 2016 and 2015 , respectively. Income tax expense associated with the reclassification adjustment for the three months ended ended March 31, 2016 and 2015 was $52 thousand and $31 thousand , respectively, and were included in “Income tax provision” in the Consolidated Statements of Income.

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands	Feb. 06, 2015	Mar. 31, 2016	Dec. 31, 2015
Fair value of liabilities assumed:
Goodwill		$ 3,524	$ 3,524
Accounted for under ASC 310-30
Information regarding acquired loans
Contractual cash flows not expected to be collected (nonaccretable difference)		221,363	226,927
Expected cash flows		962,665	1,019,407
Interest component of expected cash flows (accretable yield)		211,467	$ 223,214
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		1,000
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
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
FHC | Core deposit
Fair value of liabilities assumed:
Estimated life of asset	10 years

FAIR VALUE (Details)

FAIR VALUE (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
General disclosure on fair value
Percentage of available for sale securities that are categorized as Level 3, less than	1.00%
Impairment of premises and equipment	$ 0
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) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Fair Value
Securities available-for-sale	$ 946,543	$ 890,770
Loans held for sale	25,040	58,223
Loan servicing rights	51,348	58,113	$ 54,409	$ 70,598
U.S. government sponsored agency obligations
Fair Value
Securities available-for-sale	69,951	60,022
Taxable
Fair Value
Securities available-for-sale	1,362	1,321
Tax exempt
Fair Value
Securities available-for-sale	304,331	287,208
SBA Pools
Fair Value
Securities available-for-sale	26,729	27,925
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Fair Value
Securities available-for-sale	309,692	309,306
Privately issued
Fair Value
Securities available-for-sale	97,451	89,450
Privately issued commercial mortgage-backed securities
Fair Value
Securities available-for-sale	22,384	13,705
Corporate debt securities
Fair Value
Securities available-for-sale	114,643	101,833
Recurring basis | Forward contracts related to mortgage loans to be delivered for sale
Fair Value
Derivative liabilities	0
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 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 | 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	946,225	890,452
Loans held for sale	25,040	58,223
Loan servicing rights	0	0
Derivative assets	12,669	5,468
Total assets at fair value	983,934	954,143
Derivative liabilities	12,433	4,579
Total liabilities at fair value	12,433	4,579
Recurring basis | Level 2 | Forward contracts related to mortgage loans to be delivered for sale
Fair Value
Derivative liabilities	610	38
Recurring basis | Level 2 | Interest rate lock commitments
Fair Value
Derivative assets	2,908	1,220
Recurring basis | Level 2 | Customer-initiated derivatives
Fair Value
Derivative assets	9,761	4,143
Derivative liabilities	9,998	4,144
Recurring basis | Level 2 | Risk management derivatives
Fair Value
Derivative assets		105
Derivative liabilities	1,825	397
Recurring basis | Level 2 | Residential real estate
Fair Value
Loans held for investment, recorded at fair value	0	0
Recurring basis | Level 2 | U.S. government sponsored agency obligations
Fair Value
Securities available-for-sale	69,951	60,022
Recurring basis | Level 2 | Taxable
Fair Value
Securities available-for-sale	1,044	1,003
Recurring basis | Level 2 | Tax exempt
Fair Value
Securities available-for-sale	304,331	287,208
Recurring basis | Level 2 | SBA Pools
Fair Value
Securities available-for-sale	26,729	27,925
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	309,692	309,306
Recurring basis | Level 2 | Privately issued
Fair Value
Securities available-for-sale	97,451	89,450
Recurring basis | Level 2 | Privately issued commercial mortgage-backed securities
Fair Value
Securities available-for-sale	22,384	13,705
Recurring basis | Level 2 | Corporate debt securities
Fair Value
Securities available-for-sale	114,643	101,833
Recurring basis | Level 3
Fair Value
Securities available-for-sale	318	318
Loans held for sale	0	0
Loan servicing rights	51,348	58,113
Derivative assets	0	0
Total assets at fair value	76,043	80,664
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 liabilities	0	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	24,377	22,233
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	318
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	0	0
Recurring basis | Total Fair Value
Fair Value
Securities available-for-sale	946,543	890,770
Loans held for sale	25,040	58,223
Loan servicing rights	51,348	58,113
Derivative assets	12,669	5,468
Total assets at fair value	1,059,977	1,034,807
Derivative liabilities	12,433	4,579
Total liabilities at fair value	12,433	4,579
Recurring basis | Total Fair Value | Forward contracts related to mortgage loans to be delivered for sale
Fair Value
Derivative liabilities	610	38
Recurring basis | Total Fair Value | Interest rate lock commitments
Fair Value
Derivative assets	2,908	1,220
Recurring basis | Total Fair Value | Customer-initiated derivatives
Fair Value
Derivative assets	9,761	4,143
Derivative liabilities	9,998	4,144
Recurring basis | Total Fair Value | Risk management derivatives
Fair Value
Derivative assets		105
Derivative liabilities	1,825	397
Recurring basis | Total Fair Value | Residential real estate
Fair Value
Loans held for investment, recorded at fair value	24,377	22,233
Recurring basis | Total Fair Value | U.S. government sponsored agency obligations
Fair Value
Securities available-for-sale	69,951	60,022
Recurring basis | Total Fair Value | Taxable
Fair Value
Securities available-for-sale	1,362	1,321
Recurring basis | Total Fair Value | Tax exempt
Fair Value
Securities available-for-sale	304,331	287,208
Recurring basis | Total Fair Value | SBA Pools
Fair Value
Securities available-for-sale	26,729	27,925
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	309,692	309,306
Recurring basis | Total Fair Value | Privately issued
Fair Value
Securities available-for-sale	97,451	89,450
Recurring basis | Total Fair Value | Privately issued commercial mortgage-backed securities
Fair Value
Securities available-for-sale	22,384	13,705
Recurring basis | Total Fair Value | Corporate debt securities
Fair Value
Securities available-for-sale	$ 114,643	$ 101,833

FAIR VALUE (Details 3)

FAIR VALUE (Details 3) - Recurring basis - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Loans held for investment
Changes in Level 3 assets during period
Balance, beginning of period	$ 22,233	$ 19,526
Transfer between levels within fair value hierarchy		0
Transfers from loans held for sale	1,834	3,219
Recorded in OCI (pre-tax)		0
New originations	0	0
Reduction from servicing rights sold		0
Repayments	(295)	(822)
Balance, end of period	24,377	22,158
Loans held for investment | Interest on investments
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)		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)	82	127
Loans held for investment | Mortgage banking and other loan fees
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	523	108
Loan servicing rights
Changes in Level 3 assets during period
Balance, beginning of period	58,113	70,598
Transfer between levels within fair value hierarchy		0
Transfers from loans held for sale	0	0
Recorded in OCI (pre-tax)		0
New originations	1,700	2,915
Reduction from servicing rights sold		(12,702)
Repayments	0	0
Balance, end of period	51,348	54,409
Loan servicing rights | Interest on investments
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)		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
Loan servicing rights | Mortgage banking and other loan fees
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	(8,465)	(6,402)
Taxable
Changes in Level 3 assets during period
Balance, beginning of period	318	397
Transfer between levels within fair value hierarchy		0
Transfers from loans held for sale	0	0
Recorded in OCI (pre-tax)		0
New originations	0	0
Reduction from servicing rights sold		0
Repayments	0	0
Balance, end of period	318	397
Taxable | Interest on investments
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)		0
Taxable | Net gain on sales of loans
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)	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
Corporate debt securities
Changes in Level 3 assets during period
Balance, beginning of period		3,425
Transfer between levels within fair value hierarchy		(3,000)
Transfers from loans held for sale		0
Recorded in OCI (pre-tax)		4
New originations		0
Reduction from servicing rights sold		0
Repayments		0
Balance, end of period		430
Corporate debt securities | Interest on investments
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)		1
Corporate debt securities | Net gain on sales of loans
Changes in Level 3 assets during period
Total gains (losses) recorded in earnings (realized)		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

FAIR VALUE (Details 4)

FAIR VALUE (Details 4) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Loans held for investment measured and recorded at fair value
Aggregate fair value	$ 24,377,000		$ 22,233,000
Contractual balance	23,449,000		21,910,000
Fair market value gain	928,000		323,000
Gains (losses) from changes in fair value included in earnings	0
Fair Value, Option, Quantitative Disclosures [Line Items]
Interest income earned on loans transferred from loans held for sale to loans held for investment	222,000	$ 205,000
90 days or more past due
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value of financing receivables on nonaccrual status	152,000		275,000
Contractual principal balance	$ 156,000		$ 364,000

FAIR VALUE (Details 5)

FAIR VALUE (Details 5) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
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	(823,000)	$ (471,000)
Interest income | Loans held for sale
Gains/(losses) from changes in fair value included in earnings	329,000	1,070,000
Net gain on sales of loans | Loans held for investment
Gains/(losses) from changes in fair value included in earnings	82,000	127,000
Net gain on sales of loans | Loans held for sale
Gains/(losses) from changes in fair value included in earnings	(1,152,000)	(1,541,000)
Mortgage banking and other loan fees | Loans held for investment
Gains/(losses) from changes in fair value included in earnings	$ 523,000	$ 108,000

FAIR VALUE (Details 6)

FAIR VALUE (Details 6) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Other information with respect to fair value
Loans held for sale that are 90 days past due or on nonaccrual	$ 0	$ 7,000
Aggregate fair value	25,040,000	58,223,000
Contractual balance	23,880,000	55,911,000
Unrealized gain	$ 1,160,000	$ 2,312,000

FAIR VALUE (Details 7)

FAIR VALUE (Details 7) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value
Impaired loans	$ 81,136,000		$ 82,664,000
Other real estate owned
Other real estate owned	26,536,000		28,259,000
Impaired loans
Specific reserves for impaired loans, nonrecurring	6,438,000		8,147,000
Non-recurring basis
Fair Value
Impaired loans	13,800,000		20,100,000
Impaired loans
Specific reserves for impaired loans, nonrecurring	3,000,000		4,400,000
Charge-offs for impaired loans, nonrecurring	93,000	$ 67,000
Amount charged through other non-interest expense to reduce the fair value of other real estate	884,000	1,400,000
Valuation allowance to reduce the fair value of repossessed assets	0		325,000
Impairment charges on premises and equipment	0	0
Non-recurring basis | Repossessed assets
Impaired loans
Amount charged through other non-interest expense to reduce the fair value of repossessed assets	311,000	$ 194,000
Valuation allowance to reduce the fair value of repossessed assets	5,100,000		5,100,000
Non-recurring basis | Level 1
Fair Value
Impaired loans	0		0
Other real estate owned
Other real estate owned	0		0
Repossessed assets	0		0
Premises and equipment:			0
Total assets at fair value	0		0
Non-recurring basis | Level 1 | Real estate construction
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 1 | Commercial real estate
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 1 | Residential real estate
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 1 | Commercial and industrial
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 1 | Consumer
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 2
Fair Value
Impaired loans	0		0
Other real estate owned
Other real estate owned	0		0
Repossessed assets	0		0
Premises and equipment:			0
Total assets at fair value	0		0
Non-recurring basis | Level 2 | Real estate construction
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 2 | Commercial real estate
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 2 | Residential real estate
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 2 | Commercial and industrial
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 2 | Consumer
Fair Value
Impaired loans	0		0
Non-recurring basis | Level 3
Fair Value
Impaired loans	13,809,000		20,076,000
Other real estate owned
Other real estate owned	2,323,000		4,562,000
Repossessed assets	5,238,000		5,038,000
Premises and equipment:			1,575,000
Total assets at fair value	21,370,000		31,251,000
Non-recurring basis | Level 3 | Real estate construction
Fair Value
Impaired loans	80,000		195,000
Non-recurring basis | Level 3 | Commercial real estate
Fair Value
Impaired loans	395,000		2,960,000
Non-recurring basis | Level 3 | Residential real estate
Fair Value
Impaired loans	3,156,000		5,381,000
Non-recurring basis | Level 3 | Commercial and industrial
Fair Value
Impaired loans	10,136,000		11,522,000
Non-recurring basis | Level 3 | Consumer
Fair Value
Impaired loans	42,000		18,000
Non-recurring basis | Total Fair Value
Fair Value
Impaired loans	13,809,000		20,076,000
Other real estate owned
Other real estate owned	2,323,000		4,562,000
Repossessed assets	5,238,000		5,038,000
Premises and equipment:			1,575,000
Total assets at fair value	21,370,000		31,251,000
Non-recurring basis | Total Fair Value | Real estate construction
Fair Value
Impaired loans	80,000		195,000
Non-recurring basis | Total Fair Value | Commercial real estate
Fair Value
Impaired loans	395,000		2,960,000
Non-recurring basis | Total Fair Value | Residential real estate
Fair Value
Impaired loans	3,156,000		5,381,000
Non-recurring basis | Total Fair Value | Commercial and industrial
Fair Value
Impaired loans	10,136,000		11,522,000
Non-recurring basis | Total Fair Value | Consumer
Fair Value
Impaired loans	$ 42,000		$ 18,000

FAIR VALUE (Details 8)

FAIR VALUE (Details 8) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financial assets:
Company-owned life insurance	$ 108,958	$ 107,065
Security held-to-maturity	1,678	1,678
Deposits:
Time deposits	1,719,111	1,609,895
Total deposits	5,152,798	5,014,581
Short-term borrowings	334,480	348,998
Long-term debt	399,476	464,057
Impaired loans	81,136	82,664
Other brokered funds	222,024	228,764
Recurring basis
Deposits:
Impaired loans	24,400	22,200
Other brokered funds	61,200	61,200
Non-recurring basis
Deposits:
Impaired loans	13,800	20,100
Level 1 | Recurring basis
Financial assets:
Cash and cash equivalents	88,727	74,734
Net loans, excluding covered loans	0	0
Accrued interest 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
Short-term borrowings	0	0
Long-term debt	0	0
Accrued interest payable	0	0
Deferred compensation plan liabilities	0	0
Level 1 | Non-recurring basis
Deposits:
Impaired loans	0	0
Level 2 | Recurring basis
Financial assets:
Cash and cash equivalents	275,088	312,589
Net loans, excluding covered loans	0	0
Accrued interest receivable	16,550	15,646
Company-owned life insurance	108,958	107,065
Security held-to-maturity	0	0
Deposits:
Savings and demand deposits	3,372,466	3,343,478
Time deposits	1,781,278	1,670,058
Total deposits	5,153,744	5,013,536
Short-term borrowings	334,480	348,998
Long-term debt	394,546	456,746
Accrued interest payable	3,308	3,568
Deferred compensation plan liabilities	3,116	1,982
Level 2 | Non-recurring basis
Deposits:
Impaired loans	0	0
Level 3 | Recurring basis
Financial assets:
Cash and cash equivalents	0	0
Net loans, excluding covered loans	4,968,228	4,827,556
Accrued interest receivable	0	0
Company-owned life insurance	0	0
Security held-to-maturity	1,678	1,678
Deposits:
Savings and demand deposits	0	0
Time deposits	0	0
Total deposits	0	0
Short-term borrowings	0	0
Long-term debt	0	0
Accrued interest payable	0	0
Deferred compensation plan liabilities	0	0
Level 3 | Non-recurring basis
Deposits:
Impaired loans	13,809	20,076
Carrying Value | Recurring basis
Financial assets:
Cash and cash equivalents	363,815	387,323
Federal Home Loan Bank stock	29,621	29,621
Net loans, excluding covered loans	4,871,358	4,752,747
Accrued interest receivable	16,550	15,646
Company-owned life insurance	108,958	107,065
Security held-to-maturity	1,678	1,678
Deposits:
Savings and demand deposits	3,372,466	3,343,478
Time deposits	1,780,332	1,671,103
Total deposits	5,152,798	5,014,581
Short-term borrowings	334,480	348,998
Long-term debt	399,476	464,057
Accrued interest payable	3,308	3,568
Deferred compensation plan liabilities	3,116	1,982
Total Fair Value | Recurring basis
Financial assets:
Cash and cash equivalents	363,815	387,323
Net loans, excluding covered loans	4,968,228	4,827,556
Accrued interest receivable	16,550	15,646
Company-owned life insurance	108,958	107,065
Security held-to-maturity	1,678	1,678
Deposits:
Savings and demand deposits	3,372,466	3,343,478
Time deposits	1,781,278	1,670,058
Total deposits	5,153,744	5,013,536
Short-term borrowings	334,480	348,998
Long-term debt	394,546	456,746
Accrued interest payable	3,308	3,568
Deferred compensation plan liabilities	3,116	1,982
Total Fair Value | Non-recurring basis
Deposits:
Impaired loans	$ 13,809	$ 20,076

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	$ 933,756	$ 885,249
Gross Unrealized Gains	14,618	8,438
Gross Unrealized Losses	(1,831)	(2,917)
Fair Value	946,543	890,770
Held-to-maturity:
Total securities held-to-maturity, amortized cost	1,678	1,678
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,678	1,678
U.S. government sponsored agency obligations
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	69,398	59,414
Gross Unrealized Gains	553	614
Gross Unrealized Losses	0	(6)
Fair Value	69,951	60,022
Taxable
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	1,318	1,318
Gross Unrealized Gains	44	3
Gross Unrealized Losses	0	0
Fair Value	1,362	1,321
Tax exempt
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	297,098	282,366
Gross Unrealized Gains	7,674	5,312
Gross Unrealized Losses	(441)	(470)
Fair Value	304,331	287,208
SBA Pools
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	26,286	27,561
Gross Unrealized Gains	446	368
Gross Unrealized Losses	(3)	(4)
Fair Value	26,729	27,925
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	304,808	308,396
Gross Unrealized Gains	4,932	2,014
Gross Unrealized Losses	(48)	(1,104)
Fair Value	309,692	309,306
Privately issued
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	97,468	90,084
Gross Unrealized Gains	235	0
Gross Unrealized Losses	(252)	(634)
Fair Value	97,451	89,450
Privately issued commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	22,465	13,826
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(81)	(121)
Fair Value	22,384	13,705
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Total available-for-sale securities, amortized cost	114,915	102,284
Gross Unrealized Gains	734	127
Gross Unrealized Losses	(1,006)	(578)
Fair Value	$ 114,643	$ 101,833

SECURITIES (Details 2)

SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Information with respect to proceeds from sales of securities and the associated gains and losses
Proceeds	$ 14,977	$ 24,615
Gross gains	333	3
Gross losses	$ 0	$ (110)

SECURITIES (Details 3)

SECURITIES (Details 3) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Amortized Cost - Securities with contractual maturities:
Within one year	$ 5,589
After one year through five years	146,712
After five years through ten years	217,841
After ten years	563,614
Total available-for-sale securities, amortized cost	933,756	$ 885,249
Fair Value - Securities with contractual maturities:
Within one year	5,603
After one year through five years	148,537
After five years through ten years	221,816
After ten years	570,587
Total securities available-for-sale	946,543	890,770
Amortized Cost - Securities held-to-maturity:
After one year through five years	1,678
Total securities held-to-maturity, amortized cost	1,678	1,678
Fair Value - Securities held-to-maturity:
After one year through five years	1,678
Total securities held-to-maturity	1,678	1,678
Available-for-sale securities pledged as collateral
Securities with amortized cost pledged to secure borrowings and deposits	$ 421,000	$ 390,500

SECURITIES (Details 4)

SECURITIES (Details 4)	Mar. 31, 2016USD ($)security	Dec. 31, 2015USD ($)
Less than 12 Months
Fair Value	$ 158,174,000	$ 353,736,000
Unrealized losses	(1,551,000)	(2,784,000)
More than 12 Months
Fair Value	16,940,000	7,388,000
Unrealized losses	(280,000)	(133,000)
Total
Fair Value	175,114,000	361,124,000
Unrealized losses	$ (1,831,000)	(2,917,000)
Other information with respect to available-for-sale securities
Number of securities in portfolio | security	337
Number of securities in an unrealized loss position | security	65
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	175,114,000	361,124,000
Available-for-sale securities, gross unrealized loss	1,831,000	2,917,000
U.S. government sponsored agency obligations
Less than 12 Months
Fair Value		9,994,000
Unrealized losses		(6,000)
More than 12 Months
Fair Value		0
Unrealized losses		0
Total
Fair Value		9,994,000
Unrealized losses		(6,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value		9,994,000
Available-for-sale securities, gross unrealized loss	0	6,000
Tax exempt
Less than 12 Months
Fair Value	38,553,000	46,062,000
Unrealized losses	(211,000)	(357,000)
More than 12 Months
Fair Value	16,537,000	6,957,000
Unrealized losses	(230,000)	(113,000)
Total
Fair Value	55,090,000	53,019,000
Unrealized losses	(441,000)	(470,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	55,090,000	53,019,000
Available-for-sale securities, gross unrealized loss	441,000	470,000
SBA Pools
Less than 12 Months
Fair Value	1,468,000	1,521,000
Unrealized losses	(3,000)	(4,000)
More than 12 Months
Fair Value	0	0
Unrealized losses	0	0
Total
Fair Value	1,468,000	1,521,000
Unrealized losses	(3,000)	(4,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	1,468,000	1,521,000
Available-for-sale securities, gross unrealized loss	3,000	4,000
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises
Less than 12 Months
Fair Value	13,919,000	118,509,000
Unrealized losses	(48,000)	(1,104,000)
More than 12 Months
Fair Value	0	0
Unrealized losses	0	0
Total
Fair Value	13,919,000	118,509,000
Unrealized losses	(48,000)	(1,104,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	13,919,000	118,509,000
Available-for-sale securities, gross unrealized loss	48,000	1,104,000
Privately issued
Less than 12 Months
Fair Value	49,201,000	89,450,000
Unrealized losses	(252,000)	(634,000)
More than 12 Months
Fair Value	0	0
Unrealized losses	0	0
Total
Fair Value	49,201,000	89,450,000
Unrealized losses	(252,000)	(634,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	49,201,000	89,450,000
Available-for-sale securities, gross unrealized loss	252,000	634,000
Privately issued commercial mortgage-backed securities
Less than 12 Months
Fair Value	22,384,000	13,706,000
Unrealized losses	(81,000)	(121,000)
More than 12 Months
Fair Value	0	0
Unrealized losses	0	0
Total
Fair Value	22,384,000	13,706,000
Unrealized losses	(81,000)	(121,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	22,384,000	13,706,000
Available-for-sale securities, gross unrealized loss	81,000	121,000
Corporate debt securities
Less than 12 Months
Fair Value	32,649,000	74,494,000
Unrealized losses	(956,000)	(558,000)
More than 12 Months
Fair Value	403,000	431,000
Unrealized losses	(50,000)	(20,000)
Total
Fair Value	33,052,000	74,925,000
Unrealized losses	(1,006,000)	(578,000)
Other information with respect to available-for-sale securities
Available-for-sale securities in unrealized loss position fair value	33,052,000	74,925,000
Available-for-sale securities, gross unrealized loss	$ 1,006,000	$ 578,000

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Loans
Total loans		$ 4,923,736	$ 4,806,700
Deferred fees and costs		$ 3,400	1,900
Minimum
Loans
Term of finance		15 years
Maximum
Loans
Term of finance		30 years
Accounted for under ASC 310-30
Loans
Total loans		$ 529,835	569,266
Excluded from ASC 310-30 accounting
Loans
Total loans		4,393,901	4,237,434
Commercial real estate
Loans
Total loans		1,616,801	1,568,097
Commercial real estate | Accounted for under ASC 310-30
Loans
Total loans		231,646	250,497
Commercial real estate | Excluded from ASC 310-30 accounting
Loans
Total loans		1,385,155	1,317,600
Residential real estate
Loans
Total loans	[1]	1,604,940	1,547,799
Residential real estate | Accounted for under ASC 310-30
Loans
Total loans		257,795	273,845
Residential real estate | Excluded from ASC 310-30 accounting
Loans
Total loans		1,347,145	1,273,954
Commercial and industrial
Loans
Total loans		1,279,402	1,257,406
Commercial and industrial | Accounted for under ASC 310-30
Loans
Total loans		22,205	24,724
Commercial and industrial | Excluded from ASC 310-30 accounting
Loans
Total loans		1,257,197	1,232,682
Real estate construction
Loans
Total loans		235,007	241,603
Real estate construction | Accounted for under ASC 310-30
Loans
Total loans		9,283	10,783
Real estate construction | Excluded from ASC 310-30 accounting
Loans
Total loans		225,724	230,820
Consumer
Loans
Total loans		187,586	191,795
Consumer | Accounted for under ASC 310-30
Loans
Total loans		8,906	9,417
Consumer | Excluded from ASC 310-30 accounting
Loans
Total loans		$ 178,680	$ 182,378
[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	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Change in carrying amount of accretable discount
Balance at beginning of period	$ 223,214	$ 277,058
Additions due to acquisitions	0	5,268
Discount accretion	(14,873)	(20,964)
Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations	15,725	29,431
Other activity, net	(12,599)	(11,968)
Balance at end of period	$ 211,467	$ 278,825

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Expected cash flows for loans
Identified improvement in the cash flow expectations	$ 15,700	$ 29,400
Accounted for under ASC 310-30
Expected cash flows for loans
Contractual cash flows	962,665		$ 1,019,407
Non-accretable difference	(221,363)		(226,927)
Accretable yield	(211,467)		(223,214)
Loans accounted for under ASC 310-30	$ 529,835		$ 569,266

LOANS (Details 4)

LOANS (Details 4) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Information on nonperforming assets
Nonaccrual loans	$ 53,099	$ 57,475
Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	384	297
Nonperforming assets
Information on nonperforming assets
Nonaccrual loans	53,099	57,475
Other real estate owned and repossessed assets	26,434	28,157
Total assets	79,533	85,632
Commercial real estate | Nonperforming assets
Information on nonperforming assets
Nonaccrual loans	15,262	16,798
Residential real estate | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	141	58
Residential real estate | Nonperforming assets
Information on nonperforming assets
Nonaccrual loans	16,939	18,390
Commercial and industrial | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	13	14
Commercial and industrial | Nonperforming assets
Information on nonperforming assets
Nonaccrual loans	20,506	21,668
Real estate construction | Nonperforming assets
Information on nonperforming assets
Nonaccrual loans	232	413
Consumer | Excluded from ASC 310-30 accounting
Information on nonperforming assets
90 days or more past due and still accruing	230	225
Consumer | Nonperforming assets
Information on nonperforming assets
Nonaccrual loans	$ 160	$ 206

LOANS (Details 5)

LOANS (Details 5) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Loans and Allowance for Loan Losses
Total loans	$ 4,923,736	$ 4,806,700
Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	53,792	58,517
Current	4,340,109	4,178,917
Total loans	4,393,901	4,237,434
90 days or more past due and still accruing	384	297
Commercial real estate
Loans and Allowance for Loan Losses
Total loans	1,616,801	1,568,097
Commercial real estate | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	15,992	17,560
Current	1,369,163	1,300,040
Total loans	1,385,155	1,317,600
90 days or more past due and still accruing	0	0
Residential real estate
Loans and Allowance for Loan Losses
Total loans	1,604,940	1,547,799
Residential real estate | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	16,841	20,498
Current	1,330,304	1,253,456
Total loans	1,347,145	1,273,954
90 days or more past due and still accruing	141	58
Commercial and industrial
Loans and Allowance for Loan Losses
Total loans	1,279,402	1,257,406
Commercial and industrial | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	18,982	16,133
Current	1,238,215	1,216,549
Total loans	1,257,197	1,232,682
90 days or more past due and still accruing	13	14
Real estate construction
Loans and Allowance for Loan Losses
Total loans	235,007	241,603
Real estate construction | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	794	2,350
Current	224,930	228,470
Total loans	225,724	230,820
90 days or more past due and still accruing	0	0
Consumer
Loans and Allowance for Loan Losses
Total loans	187,586	191,795
Consumer | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	1,183	1,976
Current	177,497	180,402
Total loans	178,680	182,378
90 days or more past due and still accruing	230	225
30-59 days past due | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	16,142	25,656
30-59 days past due | Commercial real estate | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	2,764	2,662
30-59 days past due | Residential real estate | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	8,308	10,582
30-59 days past due | Commercial and industrial | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	3,663	9,079
30-59 days past due | Real estate construction | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	729	2,046
30-59 days past due | Consumer | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	678	1,287
60-89 days past due | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	5,224	6,418
60-89 days past due | Commercial real estate | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	1,874	1,378
60-89 days past due | Residential real estate | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	1,016	2,539
60-89 days past due | Commercial and industrial | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	2,069	2,099
60-89 days past due | Real estate construction | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	0	0
60-89 days past due | Consumer | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	265	402
90 days or more past due
Loans and Allowance for Loan Losses
Total past due	156	364
90 days or more past due | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	32,426	26,443
90 days or more past due | Commercial real estate | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	11,354	13,520
90 days or more past due | Residential real estate | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	7,517	7,377
90 days or more past due | Commercial and industrial | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	13,250	4,955
90 days or more past due | Real estate construction | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	65	304
90 days or more past due | Consumer | Excluded from ASC 310-30 accounting
Loans and Allowance for Loan Losses
Total past due	$ 240	$ 287

LOANS (Details 6)

LOANS (Details 6) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Information as to total impaired loans
Nonaccrual loans	$ 53,099	$ 57,475
Impaired loans, total recorded investment	81,136	82,664
Commercial real estate
Information as to total impaired loans
Impaired loans, total recorded investment	31,612	32,138
Residential real estate
Information as to total impaired loans
Impaired loans, total recorded investment	24,179	24,139
Commercial and industrial
Information as to total impaired loans
Impaired loans, total recorded investment	24,283	25,106
Real estate construction
Information as to total impaired loans
Impaired loans, total recorded investment	652	833
Consumer
Information as to total impaired loans
Impaired loans, total recorded investment	410	448
Performing assets
Information as to total impaired loans
Troubled debt restructurings	28,037	25,189
Performing assets | Commercial real estate
Information as to total impaired loans
Troubled debt restructurings	16,350	15,340
Performing assets | Residential real estate
Information as to total impaired loans
Troubled debt restructurings	7,240	5,749
Performing assets | Commercial and industrial
Information as to total impaired loans
Troubled debt restructurings	3,777	3,438
Performing assets | Real estate construction
Information as to total impaired loans
Troubled debt restructurings	420	420
Performing assets | Consumer
Information as to total impaired loans
Troubled debt restructurings	$ 250	$ 242

LOANS (Details 7)

LOANS (Details 7) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
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	$ 14,500	$ 14,500
Performing assets
Information as to total impaired loans
Troubled debt restructurings	$ 28,037	$ 25,189

LOANS (Details 8)

LOANS (Details 8) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)loan	Mar. 31, 2015USD ($)loan
Troubled Debt Restructurings
Total number of loans | loan	29	29
Total recorded investment (modified)	$ 5,105	$ 4,462
Net charge-offs (recoveries)	57	(38)
Provision (benefit) for loan losses	(118)	430
Loan forgiven	$ 142	$ 0
Commercial real estate
Troubled Debt Restructurings
Total number of loans | loan	5	5
Total recorded investment (modified)	$ 435	$ 1,440
Net charge-offs (recoveries)	0	(37)
Provision (benefit) for loan losses	$ (2)	$ 208
Residential real estate
Troubled Debt Restructurings
Total number of loans | loan	14	13
Total recorded investment (modified)	$ 1,067	$ 1,637
Net charge-offs (recoveries)	55	(1)
Provision (benefit) for loan losses	$ 48	$ 40
Commercial and industrial
Troubled Debt Restructurings
Total number of loans | loan	9	9
Total recorded investment (modified)	$ 3,596	$ 1,223
Net charge-offs (recoveries)	0	0
Provision (benefit) for loan losses	$ (164)	$ 182
Real estate construction
Troubled Debt Restructurings
Total number of loans | loan		1
Total recorded investment (modified)		$ 147
Net charge-offs (recoveries)		0
Provision (benefit) for loan losses		$ 0
Consumer
Troubled Debt Restructurings
Total number of loans | loan	1	1
Total recorded investment (modified)	$ 7	$ 15
Net charge-offs (recoveries)	2	0
Provision (benefit) for loan losses	0	0
Principal deferral
Troubled Debt Restructurings
Total recorded investment (modified)	2,863	1,304
Principal deferral | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	0
Principal deferral | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	229	949
Principal deferral | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)	2,627	340
Principal deferral | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)		0
Principal deferral | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)	7	15
Principal reduction modification
Troubled Debt Restructurings
Total recorded investment (modified)	123
Principal reduction modification | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0
Principal reduction modification | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	123
Principal reduction modification | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)	0
Principal reduction modification | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)	0
Interest rate
Troubled Debt Restructurings
Total recorded investment (modified)	1,205	1,895
Interest rate | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	435	350
Interest rate | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	663	688
Interest rate | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)	107	857
Interest rate | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)		0
Interest rate | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)	0	0
Forbearance agreement
Troubled Debt Restructurings
Total recorded investment (modified)	914	1,263
Forbearance agreement | Commercial real estate
Troubled Debt Restructurings
Total recorded investment (modified)	0	1,090
Forbearance agreement | Residential real estate
Troubled Debt Restructurings
Total recorded investment (modified)	52	0
Forbearance agreement | Commercial and industrial
Troubled Debt Restructurings
Total recorded investment (modified)	862	26
Forbearance agreement | Real estate construction
Troubled Debt Restructurings
Total recorded investment (modified)		147
Forbearance agreement | Consumer
Troubled Debt Restructurings
Total recorded investment (modified)	$ 0	$ 0

LOANS (Details 9)

LOANS (Details 9) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)loan	Mar. 31, 2015USD ($)loan
Troubled Debt Restructurings
Total number of loans | loan	16	47
Total recorded investment	$ 1,584	$ 4,553
Charged-off following a subsequent default	3	$ 500
Commitments to lend additional funds to borrowers whose terms have been modified in TDRs	$ 184
Commercial real estate
Troubled Debt Restructurings
Total number of loans | loan	5	12
Total recorded investment	$ 986	$ 2,324
Charged-off following a subsequent default	$ 0	$ 471
Residential real estate
Troubled Debt Restructurings
Total number of loans | loan	6	26
Total recorded investment	$ 379	$ 1,931
Charged-off following a subsequent default	$ 0	$ 29
Commercial and industrial
Troubled Debt Restructurings
Total number of loans | loan	4	8
Total recorded investment	$ 219	$ 220
Charged-off following a subsequent default	$ 0	$ 0
Consumer
Troubled Debt Restructurings
Total number of loans | loan	1	1
Total recorded investment	$ 0	$ 78
Charged-off following a subsequent default	$ 3	$ 0

LOANS (Details 10)

LOANS (Details 10) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	$ 4,923,736	$ 4,806,700
Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	1,616,801	1,568,097
Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	1,279,402	1,257,406
Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	235,007	241,603
Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	3,131,210	3,067,106
Pass | Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	1,454,921	1,408,238
Pass | Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	1,182,486	1,177,354
Pass | Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	229,576	235,479
Pass | Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	2,866,983	2,821,071
Special Mention | Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	74,382	60,130
Special Mention | Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	44,424	24,129
Special Mention | Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	834	259
Special Mention | Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	119,640	84,518
Substandard | Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	87,498	99,343
Substandard | Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	52,492	55,923
Substandard | Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	4,597	5,865
Substandard | Commercial and industrial, commercial real estate and real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	144,587	161,131
Doubtful | Commercial real estate
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	0	386
Doubtful | Commercial and industrial
Commercial and industrial, commercial real estate and real estate construction credit quality
Total loans	0	0
Doubtful | Real estate construction
Commercial and industrial, commercial real estate and real estate construction credit quality
Total 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
Total loans	$ 0	$ 386

LOANS (Details 11)

LOANS (Details 11) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Loans by credit quality
Total loans	$ 4,923,736	$ 4,806,700
Residential real estate
Loans by credit quality
Total loans	1,604,940	1,547,799
Consumer
Loans by credit quality
Total loans	187,586	191,795
Residential real estate and consumer loans
Loans by credit quality
Total loans	1,792,526	1,739,594
Performing assets | Residential real estate
Loans by credit quality
Total loans	1,588,001	1,529,409
Performing assets | Consumer
Loans by credit quality
Total loans	187,426	191,589
Performing assets | Residential real estate and consumer loans
Loans by credit quality
Total loans	1,775,427	1,720,998
Nonperforming assets | Residential real estate
Loans by credit quality
Total loans	16,939	18,390
Nonperforming assets | Consumer
Loans by credit quality
Total loans	160	206
Nonperforming assets | Residential real estate and consumer loans
Loans by credit quality
Total loans	$ 17,099	$ 18,596

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	$ 46,983		$ 38,192
Recorded investment with related allowance	34,153		44,472
Impaired loans, total recorded investment	81,136		82,664
Contractual principal balance	102,986		106,549
Related allowance	6,438		8,147
Average recorded investment	82,923	$ 77,686
Interest income recognized	1,071	1,754
Commercial real estate
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	16,128		12,506
Recorded investment with related allowance	15,484		19,632
Impaired loans, total recorded investment	31,612		32,138
Contractual principal balance	44,811		46,099
Related allowance	2,334		2,647
Average recorded investment	32,306	42,397
Interest income recognized	547	1,256
Residential real estate
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	16,617		13,304
Recorded investment with related allowance	7,562		10,835
Impaired loans, total recorded investment	24,179		24,139
Contractual principal balance	29,961		30,409
Related allowance	1,948		2,729
Average recorded investment	24,643	25,194
Interest income recognized	309	248
Commercial and industrial
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	13,505		11,661
Recorded investment with related allowance	10,778		13,445
Impaired loans, total recorded investment	24,283		25,106
Contractual principal balance	26,711		27,883
Related allowance	1,985		2,577
Average recorded investment	24,880	8,283
Interest income recognized	192	212
Real estate construction
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	422		402
Recorded investment with related allowance	230		431
Impaired loans, total recorded investment	652		833
Contractual principal balance	881		1,369
Related allowance	129		158
Average recorded investment	658	1,221
Interest income recognized	14	18
Consumer
Impaired loans individually evaluated for impairment
Recorded investment with no related allowance	311		319
Recorded investment with related allowance	99		129
Impaired loans, total recorded investment	410		448
Contractual principal balance	622		789
Related allowance	42		$ 36
Average recorded investment	436	591
Interest income recognized	$ 9	$ 20

ALLOWANCE FOR LOAN LOSSES (De71

ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	$ 53,953
Ending allowance for loan losses	52,378
Excluded from ASC 310-30 accounting
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	31,687	$ 22,440
Transfer in from covered	392	78
Provision (benefit) for loan and lease losses	2,112	3,073
Gross charge-offs	(1,740)	(3,759)
Recoveries	2,078	1,573
Net (charge-offs) recoveries	338	(2,186)
Ending allowance for loan losses	34,529	23,405
Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	22,266	32,732
Transfer in from covered	(392)	(78)
Provision (benefit) for loan and lease losses	(3,223)	(1,080)
Gross charge-offs	(3,312)	(7,239)
Recoveries	2,510	4,725
Net (charge-offs) recoveries	(802)	(2,514)
Ending allowance for loan losses	17,849	29,060
Commercial real estate
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	19,418
Ending allowance for loan losses	17,904
Commercial real estate | Excluded from ASC 310-30 accounting
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	8,388	7,234
Transfer in from covered	83	30
Provision (benefit) for loan and lease losses	527	5
Gross charge-offs	(410)	(1,158)
Recoveries	964	673
Net (charge-offs) recoveries	554	(485)
Ending allowance for loan losses	9,552	6,784
Commercial real estate | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	11,030	17,558
Transfer in from covered	(83)	(30)
Provision (benefit) for loan and lease losses	(1,257)	(2,547)
Gross charge-offs	(1,764)	(4,271)
Recoveries	426	3,571
Net (charge-offs) recoveries	(1,338)	(700)
Ending allowance for loan losses	8,352	14,281
Residential real estate
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	14,432
Ending allowance for loan losses	13,542
Residential real estate | Excluded from ASC 310-30 accounting
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	6,485	6,498
Transfer in from covered	58	48
Provision (benefit) for loan and lease losses	(331)	(259)
Gross charge-offs	(555)	(897)
Recoveries	632	387
Net (charge-offs) recoveries	77	(510)
Ending allowance for loan losses	6,289	5,777
Residential real estate | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	7,947	9,674
Transfer in from covered	(58)	(48)
Provision (benefit) for loan and lease losses	(1,513)	950
Gross charge-offs	(735)	(1,564)
Recoveries	1,612	248
Net (charge-offs) recoveries	877	(1,316)
Ending allowance for loan losses	7,253	9,260
Commercial and industrial
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	16,318
Ending allowance for loan losses	17,580
Commercial and industrial | Excluded from ASC 310-30 accounting
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	14,831	7,149
Transfer in from covered	24	0
Provision (benefit) for loan and lease losses	1,673	3,043
Gross charge-offs	(244)	(1,406)
Recoveries	218	382
Net (charge-offs) recoveries	(26)	(1,024)
Ending allowance for loan losses	16,502	9,168
Commercial and industrial | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	1,487	3,264
Transfer in from covered	(24)	0
Provision (benefit) for loan and lease losses	(36)	168
Gross charge-offs	(734)	(678)
Recoveries	385	365
Net (charge-offs) recoveries	(349)	(313)
Ending allowance for loan losses	1,078	3,119
Real estate construction
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	2,699
Ending allowance for loan losses	2,275
Real estate construction | Excluded from ASC 310-30 accounting
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	1,021	655
Transfer in from covered	227	0
Provision (benefit) for loan and lease losses	(210)	(147)
Gross charge-offs	(27)	(12)
Recoveries	199	32
Net (charge-offs) recoveries	172	20
Ending allowance for loan losses	1,210	528
Real estate construction | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	1,678	2,030
Transfer in from covered	(227)	0
Provision (benefit) for loan and lease losses	(381)	231
Gross charge-offs	(73)	(531)
Recoveries	68	502
Net (charge-offs) recoveries	(5)	(29)
Ending allowance for loan losses	1,065	2,232
Consumer
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	1,086
Ending allowance for loan losses	1,077
Consumer | Excluded from ASC 310-30 accounting
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	962	904
Transfer in from covered	0	0
Provision (benefit) for loan and lease losses	453	431
Gross charge-offs	(504)	(286)
Recoveries	65	99
Net (charge-offs) recoveries	(439)	(187)
Ending allowance for loan losses	976	1,148
Consumer | Accounted for under ASC 310-30
Changes in the allowance and the allocation of the allowance for loans
Balance at beginning of period	124	206
Transfer in from covered	0	0
Provision (benefit) for loan and lease losses	(36)	118
Gross charge-offs	(6)	(195)
Recoveries	19	39
Net (charge-offs) recoveries	13	(156)
Ending allowance for loan losses	$ 101	$ 168

ALLOWANCE FOR LOAN LOSSES (De72

ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Allowance for loan losses:
Individually evaluated for impairment		$ 6,438	$ 8,147
Collectively evaluated for impairment		28,091	23,540
Allowance for loan losses		52,378	53,953
Balance of loans:
Individually evaluated for impairment		81,136	82,664
Collectively evaluated for impairment		4,312,765	4,154,770
Total loans		4,923,736	4,806,700
Accounted for under ASC 310-30
Allowance for loan losses:
Allowance for loan losses		17,849	22,266	$ 29,060	$ 32,732
Balance of loans:
Total loans		529,835	569,266
Residential real estate
Allowance for loan losses:
Individually evaluated for impairment		1,948	2,729
Collectively evaluated for impairment		4,341	3,756
Allowance for loan losses		13,542	14,432
Balance of loans:
Individually evaluated for impairment		24,179	24,139
Collectively evaluated for impairment		1,322,966	1,249,815
Total loans	[1]	1,604,940	1,547,799
Residential real estate | Accounted for under ASC 310-30
Allowance for loan losses:
Allowance for loan losses		7,253	7,947	9,260	9,674
Balance of loans:
Total loans		257,795	273,845
Commercial real estate
Allowance for loan losses:
Individually evaluated for impairment		2,334	2,647
Collectively evaluated for impairment		7,218	5,741
Allowance for loan losses		17,904	19,418
Balance of loans:
Individually evaluated for impairment		31,612	32,138
Collectively evaluated for impairment		1,353,543	1,285,462
Total loans		1,616,801	1,568,097
Commercial real estate | Accounted for under ASC 310-30
Allowance for loan losses:
Allowance for loan losses		8,352	11,030	14,281	17,558
Balance of loans:
Total loans		231,646	250,497
Commercial and industrial
Allowance for loan losses:
Individually evaluated for impairment		1,985	2,577
Collectively evaluated for impairment		14,517	12,254
Allowance for loan losses		17,580	16,318
Balance of loans:
Individually evaluated for impairment		24,283	25,106
Collectively evaluated for impairment		1,232,914	1,207,576
Total loans		1,279,402	1,257,406
Commercial and industrial | Accounted for under ASC 310-30
Allowance for loan losses:
Allowance for loan losses		1,078	1,487	3,119	3,264
Balance of loans:
Total loans		22,205	24,724
Real estate construction
Allowance for loan losses:
Individually evaluated for impairment		129	158
Collectively evaluated for impairment		1,081	863
Allowance for loan losses		2,275	2,699
Balance of loans:
Individually evaluated for impairment		652	833
Collectively evaluated for impairment		225,072	229,987
Total loans		235,007	241,603
Real estate construction | Accounted for under ASC 310-30
Allowance for loan losses:
Allowance for loan losses		1,065	1,678	2,232	2,030
Balance of loans:
Total loans		9,283	10,783
Consumer
Allowance for loan losses:
Individually evaluated for impairment		42	36
Collectively evaluated for impairment		934	926
Allowance for loan losses		1,077	1,086
Balance of loans:
Individually evaluated for impairment		410	448
Collectively evaluated for impairment		178,270	181,930
Total loans		187,586	191,795
Consumer | Accounted for under ASC 310-30
Allowance for loan losses:
Allowance for loan losses		101	124	$ 168	$ 206
Balance of loans:
Total loans		$ 8,906	$ 9,417
[1]	Amounts represent loans for which the Company has elected the fair value option. See Note 3.

OTHER REAL ESTATE OWNED AND R73

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Changes in other real estate owned
Balance at the beginning of the period	$ 22,930	$ 38,908
Additions due to acquisitions		1,260
Additions due to the adoption of ASU 2014-04		540
Transfers in	3,342	5,709
Disposals	(4,145)	(9,351)
Write-downs/Charge-offs	(1,209)	(1,362)
Change in valuation allowance	325	0
Balance at the end of the period	21,243	35,704
Changes in repossessed assets
Other real estate owned and repossessed assets acquired in accordance with ASU 2014-04	374		$ 951
Real estate properties for which formal foreclosure proceedings are in process	7,900
Repossessed Assets
Changes in other real estate owned
Additions due to acquisitions		0
Changes in repossessed assets
Balance at the beginning of the period	5,329	9,835
Transfers in	792	397
Capitalized expenditures	229	1,116
Payments received	(359)	(1,401)
Disposals	(387)	(177)
Write-downs of repossessed assets	(311)	(194)
Change in valuation allowance	0	(2,359)
Balance at the end of the period	$ 5,293	$ 7,217

OTHER REAL ESTATE OWNED AND R74

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Valuation Allowance, Other Real Estate Owned
Beginning balance	$ 325	$ 0
Write-downs	(325)
Provision for valuation allowance		0
Ending balance	0	0
Repossessed Assets
Valuation Allowance, Repossessed Assets
Beginning balance	5,104	460
Write-downs	0
Provision for valuation allowance		2,359
Ending balance	$ 5,104	$ 2,819

OTHER REAL ESTATE OWNED AND R75

OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income and expenses related to other real estate owned
Net gain (loss) on sale	$ 1,555	$ 1,415
Relief of valuation allowance	325	0
Write-downs	(1,209)	(1,362)
Net operating expenses	(376)	(295)
Total	295	(242)
Repossessed Assets
Income and expenses related to repossessed assets
Net gain (loss) on sale	(64)	(14)
Write-downs	(311)	(194)
Relief of valuation allowance	0
Provision for valuation allowance		(2,359)
Net operating expenses	(84)	(25)
Total	$ (459)	$ (2,592)

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Feb. 06, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Net carrying amount of CDIs
Net carrying amount		$ 12,196		$ 12,808
Amortization expense recognized		$ 612	$ 649
FHC
Net carrying amount of CDIs
Increase in goodwill	$ 3,500
Core deposit
Intangible assets
Estimated remaining average useful life		6 years 4 months 21 days
Net carrying amount of CDIs
Gross carrying amount		$ 23,068		23,068
Accumulated amortization		(10,872)		(10,260)
Net carrying amount		12,196		$ 12,808
Amortization expense recognized		$ 612	$ 649

LOAN SERVICING RIGHTS (Details)

LOAN SERVICING RIGHTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Activity for loan servicing rights and the related fair value changes
Fair value, beginning of period	$ 58,113	$ 70,598
Additions from loans sold with servicing retained	1,700	2,915
Reduction from loans and servicing rights sold		(12,702)
Changes in fair value due to reductions from loans paid off during the period	(1,840)	(2,318)
Changes due to valuation inputs or assumptions	(6,625)	(4,084)
Fair value, end of period	51,348	54,409
Principal balance of loans serviced	5,845,225	6,002,546
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	475	691
Additions from loans sold with servicing retained	0	0
Reduction from loans and servicing rights sold		0
Changes in fair value due to reductions from loans paid off during the period	(14)	(29)
Changes due to valuation inputs or assumptions	(30)	(41)
Fair value, end of period	431	621
Principal balance of loans serviced	94,442	203,491
Mortgage
Activity for loan servicing rights and the related fair value changes
Fair value, beginning of period	57,638	69,907
Additions from loans sold with servicing retained	1,700	2,915
Changes in fair value due to reductions from loans paid off during the period	(1,826)	(2,289)
Changes due to valuation inputs or assumptions	(6,595)	(4,043)
Fair value, end of period	50,917	53,788
Principal balance of loans serviced	$ 5,750,783	5,799,055
Mortgage Loan
Activity for loan servicing rights and the related fair value changes
Reduction from loans and servicing rights sold		$ (12,702)

LOAN SERVICING RIGHTS (Details

LOAN SERVICING RIGHTS (Details 2) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value
Loan servicing fee income	$ 2,700,000	$ 2,600,000
Commercial Real Estate
Fair Value
WA discount rate (as a percent)	19.23%		19.18%
WA cost to service/per year	$ 472		$ 472
WA float range (as a percent)	0.56%		0.56%
Commercial Real Estate | Minimum
Fair Value
Prepayment speed (as a percent)	0.00%		0.00%
Commercial Real Estate | Maximum
Fair Value
Prepayment speed (as a percent)	50.00%		50.00%
Mortgage
Fair Value
WA discount rate (as a percent)	9.13%		9.13%
WA cost to service/per year	$ 61		$ 61
WA ancillary income/per year	$ 36		$ 36
Mortgage | Minimum
Fair Value
Prepayment speed (as a percent)	0.00%		0.00%
WA float range (as a percent)	1.05%		0.56%
Mortgage | Maximum
Fair Value
Prepayment speed (as a percent)	38.10%		34.56%
WA float range (as a percent)	1.55%		1.68%

DERIVATIVE INSTRUMENTS AND BA79

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amount of ineffective interest rate swaps included in net income	$ 0
Derivative instruments
Notional Amount	684,570,000	$ 559,491,000
Gross Derivative Assets	12,669,000	5,468,000
Gross Derivative Liabilities	12,433,000	4,579,000
Credit valuation adjustments for counterparty credit risk	460,000	208,000
Designated as hedges
Derivative instruments
Notional Amount	37,000,000	37,000,000
Gross Derivative Assets	0	105,000
Gross Derivative Liabilities	1,825,000	397,000
Designated as hedges | Interest rate swaps
Derivative instruments
Notional Amount	37,000,000	37,000,000
Gross Derivative Assets	0	105,000
Gross Derivative Liabilities	1,825,000	397,000
Not designated as hedging
Derivative instruments
Notional Amount	647,570,000	522,491,000
Gross Derivative Assets	12,669,000	5,363,000
Gross Derivative Liabilities	10,608,000	4,182,000
Not designated as hedging | Forward contracts related to mortgage loans to be delivered for sale
Derivative instruments
Notional Amount	115,533,000	105,711,000
Gross Derivative Assets	0	0
Gross Derivative Liabilities	610,000	38,000
Not designated as hedging | Interest rate lock commitments
Derivative instruments
Notional Amount	114,546,000	62,081,000
Gross Derivative Assets	2,908,000	1,220,000
Gross Derivative Liabilities	0	0
Not designated as hedging | Customer-initiated derivatives
Derivative instruments
Notional Amount	417,491,000	354,699,000
Gross Derivative Assets	9,761,000	4,143,000
Gross Derivative Liabilities	$ 9,998,000	$ 4,144,000

DERIVATIVE INSTRUMENTS AND BA80

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative instruments
Net gains (losses) relating to derivative instruments	$ (523)	$ 1,102
Forward contracts related to mortgage loans to be delivered for sale | Net gain on sales of loans
Derivative instruments
Net gains (losses) relating to derivative instruments	(1,975)	(1,144)
Interest rate lock commitments | Net gain on sales of loans
Derivative instruments
Net gains (losses) relating to derivative instruments	1,688	2,162
Customer-initiated derivatives | Other noninterest income
Derivative instruments
Net gains (losses) relating to derivative instruments	$ (236)	$ 84

DERIVATIVE INSTRUMENTS AND BA81

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 3) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative instruments
Amount of gain (loss) recognized in other comprehensive income (Effective portion)	$ (1,681,000)	$ (325,000)
Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion)	(148,000)	(88,000)
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)	(1,681,000)	(325,000)
Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion)	148,000	88,000
Amount of gain (loss) recognized in other non interest income (Ineffective portion)	0	$ 0
Amount of gain (loss) expected to be reclassified in the next twelve months	$ (536,000)

DERIVATIVE INSTRUMENTS AND BA82

DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 4) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Offsetting derivative assets
Gross amounts recognized	$ 12,669	$ 5,468
Offsetting derivative liabilities
Gross amounts recognized	12,433	4,579
Interest rate swaps and customer-initiated derivatives
Offsetting derivative assets
Gross amounts recognized	9,761	4,248
Financial instruments	0	0
Net amounts presented in the statement of financial position	9,761	4,248
Gross amounts not offset in the statement of financial position
Financial Instruments	(9,761)	(4,248)
Collateral (received)/posted	9,018	5,887
Net Amount	9,018	5,887
Offsetting derivative liabilities
Gross amounts recognized	11,823	4,541
Financial instruments	0	0
Net amounts presented in the statement of financial position	11,823	4,541
Gross amounts not offset in the statement of financial position
Financial Instruments	(9,761)	(4,248)
Collateral (received)/posted	2,062	293
Net Amount	$ 0	$ 0

COMMITMENTS, CONTINGENCIES AN83

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Allowance for credit losses on lending-related commitments	$ 856	$ 622
Contingencies and Guarantees
Total commitments	1,344,663	1,213,471
Fixed Rate
Contingencies and Guarantees
Total commitments	725,505	719,568
Variable Rate
Contingencies and Guarantees
Total commitments	619,158	493,903
Commitments to extend credit
Contingencies and Guarantees
Total commitments	1,278,735	1,147,370
Commitments to extend credit | Fixed Rate
Contingencies and Guarantees
Total commitments	663,579	658,268
Commitments to extend credit | Variable Rate
Contingencies and Guarantees
Total commitments	615,156	489,102
Standby letters of credit
Contingencies and Guarantees
Total commitments standby letters of credit	65,928	66,101
Standby letters of credit | Fixed Rate
Contingencies and Guarantees
Total commitments standby letters of credit	61,926	61,300
Standby letters of credit | Variable Rate
Contingencies and Guarantees
Total commitments standby letters of credit	$ 4,002	$ 4,801

COMMITMENTS, CONTINGENCIES AN84

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 2) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Contingencies and Guarantees
Warranty liabilities	$ 1,300	$ 1,300
Performance guarantee
Contingencies and Guarantees
Outstanding balance of loans	19,300	25,200
Maximum potential amount of undiscounted future payments	18,000	19,400
Recourse liability	100	125
Standby letters of credit
Contingencies and Guarantees
Standby letters of credit outstanding	$ 65,900	$ 66,100

SHORT-TERM BORROWINGS AND LON85

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 334,480	$ 348,998
Amount, long-term debt	399,476	464,057
Amount, short-term borrowings and long-term debt	$ 733,956	$ 813,055
Weighted Average Rate, short-term borrowings (as a percent)	0.85%	0.69%
Weighted Average Rate, long-term debt (as a percent)	1.79%	1.73%
Weighted Average Rate, short-term borrowings and long-term debt (as a percent)	1.36%	1.28%
Amortized Cost	$ 933,756	$ 885,249
Mortgage-backed securities
Short-term borrowings and long-term debt
Blanket lien arrangement	1,200,000
Specific lien arrangement	706,400
Additional maximum borrowing capacity	626,600
Additional maximum borrowing capacity as limited by Board resolutions	$ 453,000
Maximum
Short-term borrowings and long-term debt
Interest rate (as a percent)	0.81%
FHLB advances short-term fixed-rate notes:
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 225,000	$ 300,000
Weighted Average Rate, short-term borrowings (as a percent)	0.72%	0.58%
FHLB advances short-term fixed-rate notes: | Minimum
Short-term borrowings and long-term debt
Interest rate (as a percent)	0.68%
FHLB advances: 0.75% variable-rate notes
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 50,000	$ 0
Weighted Average Rate, short-term borrowings (as a percent)	0.75%	0.00%
Interest rate (as a percent)	0.75%
Securities sold under agreements to repurchase: 0.05%-0.10% variable-rate notes
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 21,980	$ 18,998
Weighted Average Rate, short-term borrowings (as a percent)	0.10%	0.10%
Interest rate (as a percent)	0.10%
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	$ 54,388	$ 54,800
Weighted Average Rate, long-term debt (as a percent)	4.19%	4.19%
Purchase accounting premiums	$ 4,400	$ 4,800
Balance amount	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 and long-term debt
Amortized Cost	$ 56,800
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%
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%
FHLB advances long-term fixed-rate notes
Short-term borrowings and long-term debt
Amount, long-term debt	$ 329,639	$ 393,851
Weighted Average Rate, long-term debt (as a percent)	1.33%	1.34%
Advances payable	$ 325,800	$ 389,600
Purchase accounting premiums	$ 3,800	4,300
FHLB advances long-term fixed-rate notes | Minimum
Short-term borrowings and long-term debt
Interest rate (as a percent)	0.50%
FHLB advances long-term fixed-rate notes | Maximum
Short-term borrowings and long-term debt
Interest rate (as a percent)	7.44%
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	$ 10,902	$ 10,865
Weighted Average Rate, long-term debt (as a percent)	2.86%	2.65%
Variable rate basis	three-month LIBOR
Balance amount	$ 15,000	$ 15,000
Purchase accounting discounts	$ 4,100	4,100
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	$ 4,547	$ 4,541
Weighted Average Rate, long-term debt (as a percent)	3.88%	3.58%
Variable rate basis	three-month LIBOR
Spread on variable rate (as a percent)	3.25%
Balance amount	$ 5,000	$ 5,000
Purchase accounting discounts	453	459
FHLB collateralized advances for fixed rate notes:
Short-term borrowings and long-term debt
Amount of collateral for total borrowing capacity	1,900,000
Holding Company
Short-term borrowings and long-term debt
Amount, short-term borrowings	37,500	30,000
Amount, long-term debt	15,448	15,406
Holding Company | Line of Credit
Short-term borrowings and long-term debt
Amount, short-term borrowings	$ 37,500	$ 30,000
Weighted Average Rate, short-term borrowings (as a percent)	2.19%	2.18%
Variable rate basis	one-month Libor
Spread on variable rate (as a percent)	1.75%

SHORT-TERM BORROWINGS AND LON86

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
FHLB advances:
Short-term borrowings
Average daily balance	$ 295,879	$ 18,444
Average interest rate during the period (as a percent)	0.75%	0.29%
Maximum month-end balance	$ 350,000	$ 50,000
Securities sold under agreement to repurchase
Short-term borrowings
Average daily balance	$ 19,885	$ 20,439
Average interest rate during the period (as a percent)	0.10%	0.10%
Maximum month-end balance	$ 21,980	$ 22,454
Federal funds purchased
Short-term borrowings
Average daily balance	0	$ 1,400
Average interest rate during the period (as a percent)		0.31%
Maximum month-end balance	0	$ 126,000
Holding Company | Line of Credit
Short-term borrowings
Average daily balance	$ 30,165	$ 9,556
Average interest rate during the period (as a percent)	2.18%	3.17%
Maximum month-end balance	$ 37,500	$ 20,000

SHORT-TERM BORROWINGS AND LON87

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details 3) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Remaining Contractual Maturities of the Agreements
Total borrowings	$ 334,480	$ 348,998
Amounts related to securities sold under agreements to repurchase not included in offsetting disclosure in Footnote 10	71,980
Securities Sold under Agreements to Repurchase
Remaining Contractual Maturities of the Agreements
Overnight and continuous	21,980
Up to 30 Days	0
30-90 Days	0
Greater than 90 Days	50,000
Total borrowings	$ 71,980

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Amount
Tax based on federal statutory rate	$ 7,897	$ 4,856
Effect of:
Tax exempt income	(762)	(631)
State taxes, net of federal benefit	180	266
Change in valuation allowance	(270)	0
Tax settlement with the Internal Revenue Service	(4,306)	0
Transaction costs	266	0
Deferred tax benefit	0	29
Other, net	(125)	(79)
Income tax expense	$ 2,880	$ 4,441
Rate
Tax based on federal statutory rate (as a percent)	35.00%	35.00%
Effect of:
Tax exempt income (as a percent)	(3.40%)	(4.50%)
State taxes, net of federal benefit (as a percent)	0.80%	1.90%
Change in valuation allowance (as a percent)	(1.20%)	0.00%
Tax settlement with the Internal Revenue Service (as a percent)	(19.10%)	0.00%
Transaction costs (as a percent)	1.20%	0.00%
Deferred tax benefit (as a percent)	0.00%	0.20%
Other, net (as a percent)	(0.60%)	(0.60%)
Income tax expense (benefit) (as a percent)	12.70%	32.00%

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) $ in Millions	Mar. 31, 2016USD ($)
Domestic Tax Authority | IRS
Income Tax Examination [Line Items]
Tax Settlement with IRS	$ 4.3

STOCK-BASED COMPENSATION STOCK-

STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock issued or issuable (in shares)	9,800,000
Option shares available for grant (in shares)	1,100,000
Granted (in shares)	0	0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value (in dollars per share)	$ 16.18
Total intrinsic value of stock options exercised	$ 5,300,000	$ 1,100,000
Cash received from exercise of options	$ 1,600,000	$ 210,000
Shares issued on stock option exercises upon receipt of cash (in shares)	245,000	35,000
Number of shares issued under the net-settlement option (in shares)	160,000	46,000
Tax benefit realized from option exercises	$ 1,500,000	$ 292,000
Total unrecognized compensation cost related to stock options	0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense	698,000	351,000
Total unrecognized compensation cost	$ 13,300,000
Weighted-average period over which unrecognized compensation cost is expected to be recognized	3 years 4 months 24 days
Restricted Stock | Salary and Employee Benefits
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense	$ 627,000	298,000
Restricted Stock | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Restricted Stock | Director | Professional Fee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense	$ 71,000	$ 53,000
Restricted Stock | Cliff Vesting | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Accelerated vesting period after change in control	1 year
Restricted Stock | Incremental Vesting | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details 2) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Number of Shares
Outstanding at the beginning of the period (in shares) | shares	7,235
Exercised (in shares) | shares	(551)
Outstanding at the end of the period (in shares) | shares	6,684
Options fully vested and expected to vest (in shares) | shares	6,684
Exercisable at the end of the period (in shares) | shares	6,684
Weighted Average Exercise Price per Share
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 6.97
Exercised (in dollars per share) | $ / shares	6.60
Outstanding at the end of the period (in dollars per share) | $ / shares	7
Options fully vested and expected to vest (in dollars per share) | $ / shares	7
Exercisable at the end of the period (in dollars per share) | $ / shares	$ 7
Weighted Average Remaining Contractual Life
Outstanding at the end of the period	5 years 5 months 27 days
Options fully vested and expected to vest	5 years 5 months 27 days
Exercisable at the end of the period	5 years 5 months 27 days
Aggregate Intrinsic Value
Outstanding at the end of the period | $	$ 74,130
Options fully vested and expected to vest | $	74,130
Exercisable at the end of the period | $	$ 74,130

STOCK-BASED COMPENSATION (Det92

STOCK-BASED COMPENSATION (Details 3) - Restricted Stock shares in Thousands	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Shares
Nonvested at beginning of period (in shares) | shares	726
Granted (in shares) | shares	326
Forfeited (in shares) | shares	(2)
Nonvested at end of period (in shares) | shares	1,050
Weighted-Average Grant-Date Fair Value
Nonvested at beginning of period (in dollars per share) | $ / shares	$ 14.82
Granted (in dollars per share) | $ / shares	16.65
Forfeited (in dollars per share) | $ / shares	15.77
Nonvested at end of period (in dollars per share) | $ / shares	$ 15.38

REGULATORY CAPITAL MATTERS (Det

REGULATORY CAPITAL MATTERS (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 27, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
REGULATORY CAPITAL MATTERS
Final value of the capital conservation buffer to be reached at the end of the phase-in period		2.50%
Current value of the capital conservation buffer		0.625%
Capital conservation buffer phase-in period		4 years
Total capital to risk-weighted assets
Actual Amount		$ 730,134		$ 718,666
Actual Ratio		13.10%		13.00%
For Capital Adequacy Purposes Amount		$ 444,723		$ 442,170
For Capital Adequacy Purposes Ratio		8.00%		8.00%
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount		$ 479,467
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio		8.60%
Common equity tier 1 capital
Actual Amount		$ 675,500		$ 662,668
Actual Ratio		12.20%		12.00%
For Capital Adequacy Purposes Amount		$ 250,157		$ 248,721
For Capital Adequacy Purposes Ratio		4.50%		4.50%
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount		$ 284,901
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio		5.10%
Tier 1 capital to risk-weighted assets
Actual Amount		$ 675,500		$ 662,668
Actual Ratio		12.20%		12.00%
For Capital Adequacy Purposes Amount		$ 333,542		$ 331,628
For Capital Adequacy Purposes Ratio		6.00%		6.00%
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount		$ 368,286
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio		6.60%
Tier 1 leverage ratio
Actual Amount		$ 675,500		$ 662,668
Actual Ratio		10.30%		10.20%
For Capital Adequacy Purposes Amount		$ 262,349		$ 259,694
For Capital Adequacy Purposes Ratio		4.00%		4.00%
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount		$ 262,349
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio		4.00%
Dividend income from subsidiary		$ 0	$ 15,000
Dividend declared (in dollars per share)		$ 0.05	$ 0.01
Subsequent Event
Tier 1 leverage ratio
Dividend declared (in dollars per share)	$ 0.05
Talmer Bank and Trust
Total capital to risk-weighted assets
Actual Amount		$ 756,388		$ 740,338
Actual Ratio		13.70%		13.50%
For Capital Adequacy Purposes Amount		$ 442,723		$ 439,255
For Capital Adequacy Purposes Ratio		8.00%		8.00%
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount		$ 475,928
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio		8.60%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount		$ 553,404		$ 549,068
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio		10.00%		10.00%
Common equity tier 1 capital
Actual Amount		$ 701,754		$ 684,340
Actual Ratio		12.70%		12.50%
For Capital Adequacy Purposes Amount		$ 249,032		$ 247,081
For Capital Adequacy Purposes Ratio		4.50%		4.50%
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount		$ 282,236
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio		5.10%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount		$ 359,713		$ 356,894
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio		6.50%		6.50%
Tier 1 capital to risk-weighted assets
Actual Amount		$ 701,754		$ 684,340
Actual Ratio		12.70%		12.50%
For Capital Adequacy Purposes Amount		$ 332,042		$ 329,441
For Capital Adequacy Purposes Ratio		6.00%		6.00%
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount		$ 365,247
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio		6.60%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount		$ 442,723		$ 439,255
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio		8.00%		8.00%
Tier 1 leverage ratio
Actual Amount		$ 701,754		$ 684,340
Actual Ratio		10.70%		10.50%
For Capital Adequacy Purposes Amount		$ 263,103		$ 259,784
For Capital Adequacy Purposes Ratio		4.00%		4.00%
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount		$ 263,103
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio		4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount		$ 328,879		$ 324,730
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio		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 (as a percent)		20.00%

PARENT COMPANY FINANCIAL STAT94

PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 363,815	$ 387,323	$ 485,883	$ 253,736
Income tax benefit	173,596	177,183
Other assets	58,708	46,684
Total assets	6,713,689	6,595,890
Liabilities
Short-term borrowings	334,480	348,998
Long-term debt	399,476	464,057
Total liabilities	5,965,019	5,870,675
Shareholders’ equity	748,670	725,215	753,849	761,607
Total liabilities and shareholders’ equity	6,713,689	6,595,890
Parent Company
Assets
Cash and cash equivalents	13,643	12,581	$ 4,061	$ 9,497
Investment in subsidiary	778,322	750,713
Income tax benefit	10,006	8,504
Other assets	891	994
Total assets	802,862	772,792
Liabilities
Short-term borrowings	37,500	30,000
Long-term debt	15,448	15,406
Accrued expenses and other liabilities	1,244	2,171
Total liabilities	54,192	47,577
Shareholders’ equity	748,670	725,215
Total liabilities and shareholders’ equity	$ 802,862	$ 772,792

PARENT COMPANY FINANCIAL STAT95

PARENT COMPANY FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income
Dividend income from subsidiary	$ 0	$ 15,000
Other noninterest income	3,734	3,990
Expenses
Salary and employee benefits	25,813	29,212
Professional service fees	3,290	3,543
Insurance expense	1,550	1,530
Marketing expense	1,529	1,095
Interest on short-term borrowings	657	79
Interest on long-term debt	1,000	800
Other	4,656	8,400
Income tax benefit	(2,880)	(4,441)
Net income	19,683	9,433
Total comprehensive income, net of tax	23,410	12,223
Parent Company
Income
Dividend income from subsidiary	0	15,000
Other noninterest income	5	5
Total income	5	15,005
Expenses
Salary and employee benefits	1,688	1,221
Merger and acquisition expense	2,874	996
Professional service fees	515	377
Insurance expense	115	80
Marketing expense	15	14
Interest on short-term borrowings	167	74
Interest on long-term debt	198	162
Other	53	114
Total expenses	5,625	3,038
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries	(5,620)	11,967
Income tax benefit	1,814	653
Equity in (over) under distributed earnings of subsidiaries	23,489	(3,187)
Net income	19,683	9,433
Total comprehensive income, net of tax	$ 23,410	$ 12,223

PARENT COMPANY FINANCIAL STAT96

PARENT COMPANY FINANCIAL STATEMENTS (Details 3) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income	$ 19,683	$ 9,433
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	698	351
Decrease in other assets, net	(5,985)	(1,099)
Decrease in accrued expenses and other liabilities, net	33,693	(7,674)
Net cash from operating activities	82,454	43,633
Cash flows from investing activities
Net cash used in investing activities	(164,427)	4,149
Cash flows from financing activities
Issuance of common stock and restricted stock awards, including tax benefit	2,667	266
Repurchase of warrants to repurchase 2.5 million shares, at fair value	0	(19,892)
Cash dividends paid on common stock	(3,320)	(706)
Repayment of long-term debt	0	(3,500)
Net cash from financing activities	58,465	184,365
Net increase (decrease) in cash and cash equivalents	(23,508)	232,147
Beginning cash and cash equivalents	387,323	253,736
Ending cash and cash equivalents	$ 363,815	$ 485,883
Cash dividends declared on common stock (in dollars per share)	$ 0.05	$ 0.01
Common Stock
Cash flows from financing activities
Number of shares repurchased (in share)	0	2.5
Parent Company
Cash flows from operating activities
Net income	$ 19,683	$ 9,433
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in over (under) distributed earnings of subsidiaries	(23,489)	3,187
Stock-based compensation expense	305	143
Increase in income tax benefit	(1,502)	(736)
Decrease in other assets, net	103	100
Decrease in accrued expenses and other liabilities, net	(885)	(2,633)
Net cash from operating activities	(5,785)	9,494
Cash flows from investing activities
Cash used in acquisitions	0	(13,323)
Refund of investment	0	2,225
Net cash used in investing activities	0	(11,098)
Cash flows from financing activities
Issuance of common stock and restricted stock awards, including tax benefit	2,667	266
Repurchase of warrants to repurchase 2.5 million shares, at fair value	0	(19,892)
Cash dividends paid on common stock	(3,320)	(706)
Draw on senior unsecured line of credit	7,500	20,000
Repayment of long-term debt	0	(3,500)
Net cash from financing activities	6,847	(3,832)
Net increase (decrease) in cash and cash equivalents	1,062	(5,436)
Beginning cash and cash equivalents	12,581	9,497
Ending cash and cash equivalents	$ 13,643	$ 4,061
Number of shares repurchased (in share)	0
Cash dividends declared on common stock (in dollars per share)	$ 0.05	$ 0.01
Parent Company | Common Stock
Cash flows from financing activities
Number of shares repurchased (in share)		0

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator for basic and diluted EPS:
Net income	$ 19,683	$ 9,433
Net income allocated to participating securities	249	53
Net income allocated to shareholders	$ 19,434	$ 9,380
Weighted average common shares - issued (in shares)	66,502,000	70,619,000
Average unvested restricted share awards (in shares)	(866,000)	(403,000)
Weighted average common shares outstanding - basic (in shares)	65,636,000	70,216,000
Effect of dilutive securities -
Employee and director stock options (in shares)	4,054,000	3,962,000
Warrants (in shares)	16,000	925,000
Weighted average common shares outstanding - diluted (in shares)	69,706,000	75,103,000
EPS available to common shareholders
Basic (in dollars per share)	$ 0.30	$ 0.13
Diluted (in dollars per share)	0.28	0.12
Other information on EPS
Average stock valuation (in dollars per share)	$ 16.89	$ 14.07
Warrants repurchase
Other information on EPS
Shares not included in the computation of diluted net income available to common shareholders (in shares)	0	0
Options
Other information on EPS
Shares not included in the computation of diluted net income available to common shareholders (in shares)		35,000
Outstanding exercise prices: Low end (in dollars per share)		$ 14.44
Outstanding exercise prices: High end (in dollars per share)		$ 14.44

ACCUMULATED OTHER COMPREHENSI98

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 725,215	$ 761,607
Other comprehensive income (loss) before reclassifications	3,847	2,664
Amounts reclassified from accumulated other comprehensive income	(120)	126
Other comprehensive income, net of tax	3,727	2,790
Ending balance	748,670	753,849
Net gain (loss) on sales of securities	333	(107)
Income tax expense (benefit) with the reclassification adjustments related to available-for-sale securities	(117)	38
Other brokered funds included in total interest expense	148	88
Income tax expense (benefit) associated with the reclassification adjustments related to cash flow hedges	52	31
Unrealized gains (losses) on securities available-for-sale, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	3,589	3,995
Other comprehensive income (loss) before reclassifications	4,939	2,875
Amounts reclassified from accumulated other comprehensive income	(216)	69
Other comprehensive income, net of tax	4,723	2,944
Ending balance	8,312	6,939
Unrealized gains (losses) on cash flow hedges, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(190)	(145)
Other comprehensive income (loss) before reclassifications	(1,092)	(211)
Amounts reclassified from accumulated other comprehensive income	96	57
Other comprehensive income, net of tax	(996)	(154)
Ending balance	(1,186)	(299)
Total unrealized gains (losses), net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	3,399	3,850
Other comprehensive income, net of tax	3,727	2,790
Ending balance	$ 7,126	$ 6,640