XML 50 R47.htm IDEA: XBRL DOCUMENT v2.4.1.9
Disclosures about Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Estimated Fair Values of Financial Instruments
The estimated fair values of the Bancorp’s financial instruments were as follows at December 31, 2014 and 2013.
 
Carrying
Amount
 
Estimated
Fair Value
 
Fair Value Measurements at December 31, 2014
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
(amounts in thousands)
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
371,023

 
$
371,023

 
$
371,023

 
$

 
$

Investment securities, available for sale
416,685

 
416,685

 
24,270

 
392,415

 

Loans held for sale
1,435,459

 
1,436,460

 

 
1,335,668

 
100,792

Loans receivable, net of allowance for loan losses
4,281,241

 
4,285,537

 

 

 
4,285,537

FHLB, Federal Reserve Bank and other restricted stock
82,002

 
82,002

 

 
82,002

 

Accrued interest receivable
15,205

 
15,205

 

 
15,205

 

FDIC loss sharing receivable
2,320

 
2,320

 

 

 
2,320

Derivatives
7,552

 
7,552

 

 
7,509

 
43

Liabilities:
 
 
 
 
 
 
 
 
 
Deposits
$
4,532,538

 
$
4,540,507

 
$
546,436

 
$
3,994,071

 
$

FHLB advances
1,618,000

 
1,619,858

 
1,298,000

 
321,858

 

Other borrowings
88,250

 
92,069

 
66,944

 
25,125

 

Subordinated debt
110,000

 
111,925

 

 
111,925

 

Derivatives
9,716

 
9,716

 

 
9,716

 

Accrued interest payable
2,599

 
2,599

 

 
2,599

 

 
Carrying
Amount
 
Estimated
Fair Value
 
Fair Value Measurements at 
 
December 31, 2013
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
(amounts in thousands)
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
233,068

 
$
233,068

 
$
233,068

 
$

 
$

Investment securities, available for sale
497,573

 
497,573

 
20,714

 
476,859

 

Loans held for sale
747,593

 
747,593

 

 
747,593

 

Loans receivable, net of allowance for loan losses
2,441,080

 
2,444,900

 

 

 
2,444,900

FHLB and Federal Reserve Bank stock
42,424

 
42,424

 

 
42,424

 

Accrued interest receivable
8,362

 
8,362

 

 
8,362

 

FDIC loss sharing receivable
10,046

 
10,046

 

 

 
10,046

Derivatives
3,763

 
3,763

 

 
3,523

 
240

Liabilities:
 
 
 
 
 
 
 
 
 
Deposits
$
2,959,922

 
$
2,919,935

 
$
478,103

 
$
2,441,832

 
$

Federal funds purchased
13,000

 
13,000

 
13,000

 

 

FHLB advances
706,500

 
708,025

 
596,500

 
111,525

 

Other borrowings
63,250

 
64,768

 
64,768

 

 

Subordinated debt
2,000

 
2,000

 

 
2,000

 

Derivatives
3,537

 
3,537

 

 
3,537

 

Accrued interest payable
1,675

 
1,675

 

 
1,675

 

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis
For financial assets and liabilities measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2014 and 2013 were as follows:
 
December 31, 2014
 
Fair Value Measurements at the End of the Reporting Period Using
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
(amounts in thousands)

Measured at Fair Value on a Recurring Basis:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Mortgage-backed securities
$

 
$
377,311

 
$

 
$
377,311

Corporate notes

 
15,104

 

 
15,104

Equity securities
24,270

 

 

 
24,270

Derivatives (1)

 
7,509

 
43

 
7,552

Loans held for sale – fair value option

 
1,335,668

 

 
1,335,668

Total assets - recurring fair value measurements
$
24,270

 
$
1,735,592

 
$
43

 
$
1,759,905

Liabilities
 
 
 
 
 
 
 
Derivatives (2)
$

 
$
9,716

 
$

 
$
9,716

Measured at Fair Value on a Nonrecurring Basis:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Impaired loans, net of specific reserves of $1,342
$

 
$

 
$
2,380

 
$
2,380

Other real estate owned

 

 
9,149

 
9,149

Total assets - nonrecurring fair value measurements
$

 
$

 
$
11,529

 
$
11,529

 
December 31, 2013
 
Fair Value Measurements at the End of the Reporting Period Using
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
(amounts in thousands)
 
Measured at Fair Value on a Recurring Basis:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Mortgage-backed securities
$

 
$
451,536

 
$

 
$
451,536

Corporate notes

 
25,323

 

 
25,323

Equity securities
20,714

 

 

 
20,714

Derivatives (1)

 
3,523

 
240

 
3,763

Loans held for sale – fair value option

 
747,593

 

 
747,593

Total assets - recurring fair value measurements
$
20,714

 
$
1,227,975

 
$
240

 
$
1,248,929

Liabilities
 
 
 
 
 
 
 
Derivatives (2)
$

 
$
3,537

 
$

 
$
3,537

Measured at Fair Value on a Nonrecurring Basis:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Impaired loans, net of specific reserves of $2,342
$

 
$

 
$
3,836

 
$
3,836

Other real estate owned

 

 
335

 
335

Total assets - nonrecurring fair value measurements
$

 
$

 
$
4,171

 
$
4,171

Statement of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013 are summarized as follows:
 
 
Residential
Mortgage Loan
Commitments
(amounts in thousands)
 
 
Balance at January 1, 2014
 
$
240

Issuances
 
235

Settlements
 
(432
)
Balance at December 31, 2014
 
$
43


 
Loans
Held for
Sale (1)
 
Residential
Mortgage Loan
Commitments
 
Total
(amounts in thousands)
 
 
 
 
 
Balance at January 1, 2013
$

 
$

 
$

Transfer from Level 2 to Level 3(1)
3,173

 

 
3,173

Recoveries
(1,463
)
 

 
(1,463
)
Sales
(1,013
)
 

 
(1,013
)
Transfer from loans held for sale to other assets (1)
(697
)
 

 
(697
)
Issuances

 
240

 
240

Balance at December 31, 2013
$

 
$
240

 
$
240

 
(1)
For additional information, refer to “NOTE 21 –LOSS CONTINGENCY.”
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2014 and 2013 for which the Bancorp utilized Level 3 inputs to measure fair value:
 
Quantitative Information about Level 3 Fair Value Measurements
December 31, 2014
Fair Value
Estimate
 
Valuation Technique
 
Unobservable Input
 
Range (Weighted
Average) (3)
(amounts in thousands)
 
Impaired loans
$
2,380

 
Collateral appraisal (1)
 
Liquidation expenses (2)
 
(8
)%
Other real estate owned
9,149

 
Collateral appraisal (1)
 
Liquidation expenses (2)
 
(8
)%
Residential mortgage loan commitments
43

 
Adjusted market bid
 
Pull-through rate
 
80
 %
 
 
Quantitative Information about Level 3 Fair Value Measurements
December 31, 2013
Fair Value
Estimate
 
Valuation Technique
 
Unobservable Input
 
Range (Weighted
Average) (3)
(amounts in thousands)
 
Impaired loans
$
3,836

 
Collateral appraisal (1)
 
Liquidation expenses (2)
 
-3% to -8% (-5.5%)
Other real estate owned
335

 
Collateral appraisal (1)
 
Liquidation expenses (2)
 
-3% to -8% (-5.5%)
Residential mortgage loan commitments
240

 
Adjusted market bid
 
Pull-through rate
 
80
%
(1)
Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bancorp does not discount appraisals.
(2)
Fair value is adjusted for costs to sell.
(3)
Presented as a percentage of the value determined by appraisal for impaired loans and other real estate owned.