Fair Value of Assets and liabilities (Tables)
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3 Months Ended |
Mar. 31, 2019 |
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| Fair Value Disclosures [Abstract] |
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| Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following table presents the Company’s fair value
hierarchy for those assets and liabilities measured at fair value
on a recurring basis as of March 31, 2019 and
December 31, 2018.
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March 31, 2019
(Dollars in thousands)
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets
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Equity investments
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$ |
— |
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$ |
— |
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$ |
8,699 |
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$ |
8,699 |
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Available for sale investment securities(1)
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— |
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44,682 |
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— |
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44,682 |
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Total
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$ |
— |
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$ |
44,682 |
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$ |
8,699 |
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$ |
53,381 |
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| (1) |
Total unrealized income of $669, net of tax, was
included in accumulated other comprehensive income (loss) for the
three months ended March 31, 2019 related to these assets.
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December 31, 2018
(Dollars in thousands)
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets
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Equity investments
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$ |
— |
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$ |
— |
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$ |
9,197 |
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$ |
9,197 |
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Available for sale investment securities(1)
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— |
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45,324 |
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— |
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45,324 |
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Total
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$ |
— |
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$ |
45,324 |
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$ |
9,197 |
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$ |
54,521 |
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| (1) |
Total unrealized losses of $82, net of tax, was
included in accumulated other comprehensive income (loss) for the
nine months ended December 31, 2018 related to these
assets.
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| Schedule of Changes in Fair Value of the Company's Level 3 Assets and Liabilities |
The following tables provide a summary of changes in fair value of
the Company’s level 3 assets and liabilities for the quarter
ended March 31, 2019, under Bank Holding Company Accounting,
and for the quarter ended March 31, 2018 under Investment
Company Accounting.
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(Dollars in thousands)
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Equity
Investments |
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December 31, 2018
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$ |
9,197 |
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Gains included in earnings
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|
598 |
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Purchases, investments, and issuances
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50 |
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Sales, maturities, settlements, and distributions
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(1,146 |
) |
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March 31, 2019
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$ |
8,699 |
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Amounts related to held assets(1)
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$ |
196 |
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| (1) |
Total realized and unrealized gains (losses) included
in income for the period which relate to assets held as of
March 31, 2019.
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| Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis |
The following tables present the Company’s fair value
hierarchy for those assets and liabilities measured at fair value
on a non-recurring basis
as of March 31, 2019 and December 31, 2018 under Bank
Holding Company Accounting.
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March 31, 2019
(Dollars in thousands)
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets
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Impaired loans
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$ |
— |
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$ |
— |
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$ |
21,549 |
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$ |
21,549 |
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Loan collateral in process of foreclosure
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— |
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— |
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49,808 |
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49,808 |
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Total
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$ |
— |
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$ |
— |
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$ |
71,357 |
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$ |
71,357 |
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December 31, 2018
(Dollars in thousands)
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets
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Impaired loans
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$ |
— |
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$ |
— |
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$ |
34,877 |
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$ |
34,877 |
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Loan collateral in process of foreclosure
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— |
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— |
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49,495 |
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49,495 |
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Total
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$ |
— |
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$ |
— |
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$ |
84,372 |
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$ |
84,372 |
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| Summary of Valuation Techniques and Significant Unobservable Inputs Used in Recurring Level 3 Fair Value Measurements of Assets and Liabilities |
The valuation techniques and significant unobservable inputs used
in recurring level 3 fair value measurements of assets and
liabilities as of March 31, 2019 and December 31, 2018
were as follows under Bank Holding Company Accounting.
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(Dollars in thousands)
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Fair Value
at 3/31/19 |
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Valuation Techniques
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Unobservable Inputs
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Range
(Weighted Average) |
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Equity Investments
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5,488 |
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Investee financial analysis |
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Financial condition and operating performance of
the borrower |
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N/A |
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Collateral support |
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N/A |
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1,756 |
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Investee book value adjusted for market
appreciation |
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Financial condition and operating performance of
the investee |
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N/A |
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Precedent arm’s length offer |
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Business enterprise value |
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$ |
6,014 – $7,214 |
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Business enterprise value/revenue multiples |
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0.96x – 4.44x |
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1,455 |
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Precedent market transaction |
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Offering price |
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$ |
8.73 / share |
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Equity investments
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$ |
5,683 |
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Investee financial analysis |
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Financial condition and operating performance of
the borrower |
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|
N/A |
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Collateral support |
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N/A |
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1,850 |
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Investee book value adjusted for market
appreciation |
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Financial condition and operating performance of
the investee |
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N/A |
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Precedent arm’s length offer |
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Business enterprise value |
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$ |
6,014 – $7,214 |
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Business enterprise value/revenue multiples |
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0.96x – 4.54x |
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1,455 |
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Precedent market transaction |
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Offering price |
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$ |
8.73 / share |
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|
209 |
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Investee book value |
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Valuation indicated by investee filings |
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N/A |
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