XML 55 R44.htm IDEA: XBRL DOCUMENT v3.10.0.1
Fair Value Measurement (Tables)
 9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):

 

     Total      Level 1      Level 2      Level 3  

Fair value at September 30, 2018

            

Marketable equity securities

    $ 2,846      $ 2,846      $ —        $ —    

Debt securities available for sale:

            

Obligations of U.S. government agencies

      638,876        —          638,876        —    

Obligations of states and political subdivisions

      123,420        —          123,420        —    

Corporate bonds

      4,431        —          4,431        —    

Asset backed securities

      289,233        —          289,233        —    

Loans held for sale

      3,824        —          3,824        —    

Mortgage servicing rights

      7,122        —          —          7,122  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 1,069,752      $ 2,846      $ 1,059,784      $ 7,122  
  

 

 

     

 

 

     

 

 

     

 

 

  
     Total      Level 1      Level 2      Level 3  

Fair value at December 31, 2017

            

Marketable equity securities

    $ 2,938      $ 2,938      $ —        $ —    

Debt securities available for sale:

            

Obligations of U.S. government agencies

      604,789        —          604,789        —    

Obligations of states and political subdivisions

      123,156        —          123,156        —    

Loans held for sale

      4,616        —          4,616        —    

Mortgage servicing rights

      6,687        —          —          6,687  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 742,186      $ 2,938      $ 732,561      $ 6,687  
  

 

 

     

 

 

     

 

 

     

 

 

  
Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) on Recurring Basis

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):

 

     Beginning
Balance		      Transfers
into (out of)
Level 3		      Change
Included
in Earnings		     Issuances      Ending
Balance		  

Three months ended September 30,

              

2018: Mortgage servicing rights

    $ 7,021        —        $ (37 )    $ 138      $ 7,122  

2017: Mortgage servicing rights

    $ 6,596        —        $ (325 )    $ 148      $ 6,419  
     Beginning
Balance		      Transfers
into (out of)
Level 3		      Change
Included
in Earnings		     Issuances      Ending
Balance		  

Nine months ended September 30,

              

2018: Mortgage servicing rights

    $ 6,687        —        $ 38     $ 397      $ 7,122  

2017: Mortgage servicing rights

    $ 6,595        —        $ (795 )    $ 619      $ 6,419  
Quantitative Information about Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements at September 30, 2018:

 

     Fair Value      Valuation    Unobservable    Range,
Weighted
   (in thousands)      Technique    Inputs    Average

Mortgage Servicing Rights

    $ 7,122      Discounted
cash flow		    Constant
prepayment rate		    4.8%-33%, 7.3%
         Discount rate    12%, 12%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2017:

 

     Fair Value      Valuation    Unobservable    Range,
Weighted
   (in thousands)      Technique    Inputs    Average

Mortgage Servicing Rights

    $ 6,687      Discounted
cash flow		    Constant
prepayment rate		    6.2%-22.0%, 8.9%
         Discount rate    13.0%-15.0%, 13.0%
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):

 

     Total      Level 1      Level 2      Level 3      Total Gains
(Losses)		  

Nine months ended September 30, 2018

               

Fair value:

               

Impaired Originated & PNCI loans

    $ 445        —          —        $ 445      $ (808 ) 

Foreclosed assets

      863        —          —          863        (23 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 1,308        —          —        $ 1,308      $ (831 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     Total      Level 1      Level 2      Level 3      Total Gains
(Losses)		  

Year ended December 31, 2017

               

Fair value:

               

Impaired Originated & PNCI loans

    $ 2,767        —          —        $ 2,767      $ (1,452 ) 

Foreclosed assets

      2,217        —          —          2,217        (135 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 4,984        —          —        $ 4,984      $ (1,587 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     Total      Level 1      Level 2      Level 3      Total Gains
(Losses)		  

Nine months ended September 30, 2017

               

Fair value:

               

Impaired Originated & PNCI loans

    $ 1,026        —          —        $ 1,026      $ (892 ) 

Foreclosed assets

      2,062        —          —          2,062        (157 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 3,088        —          —        $ 3,088      $ (1,049 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 


 
Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at September 30, 2018:

 

     Fair Value      Valuation             Range,
     (in thousands)      Technique      Unobservable Inputs     

Weighted Average

September 30, 2018

            

Impaired Originated & PNCI loans

    $ 445       
 Sales comparison
approach		  
 		     
 Adjustment for differences
between comparable sales;		  
 		    (55.8%) - 60%; (28%)
        Income approach        Capitalization rate      N/A

Foreclosed assets (Residential real estate)

    $ 744       
 Sales comparison
approach		  
 		     
 Adjustment for differences
between comparable sales		  
 		    (47%) - 52%; 0.9%

Foreclosed assets (Commercial real estate)

    $ 92       
 Sales comparison
approach		  
 		     
 Adjustment for differences
between comparable sales		  
 		    (65%) - 20%; (45%)

Foreclosed assets (Land and construction)

    $ 27       
 Sales comparison
approach		  
 		     
 Adjustment for differences
between comparable sales		  
 		    Information not meaningful

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2017:

 

     Fair Value      Valuation             Range,
     (in thousands)      Technique      Unobservable Inputs     

Weighted Average

December 31, 2017

            

Impaired Originated & PNCI loans

    $ 2,767       
 Sales comparison
approach		  
 		     
 Adjustment for differences
between comparable sales		  
 		    (74%) - 23%; (19.76%)
        Income approach        Capitalization rate      N/A

Foreclosed assets (Land & construction)

    $  1,341       
 Sales comparison
approach		  
 		     
 Adjustment for differences
between comparable sales		  
 		    (53%) - 283%; 167%

Foreclosed assets (Residential real estate)

    $ 622       
 Sales comparison
approach		  
 		     
 Adjustment for differences
between comparable sales		  
 		    (47%) - 39%; (3.13%)

Foreclosed assets (Commercial real estate)

    $ 254       
 Sales comparison
approach		  
 		     
 Adjustment for differences
between comparable sales		  
 		    (84%) - 19%; (84%)
Estimated Fair Values of Financial Instruments that are Reported at Amortized Cost in Consolidated Balance Sheets

The estimated fair values of financial instruments that are reported at amortized cost in the Company’s condensed consolidated balance sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (in thousands):

 

     September 30, 2018      December 31, 2017  
     Carrying      Fair      Carrying      Fair  
   Amount      Value      Amount      Value  

Financial assets:

            

Level 1 inputs:

            

Cash and due from banks

    $ 109,363      $ 109,363      $ 105,968      $ 105,968  

Cash at Federal Reserve and other banks

      117,180        117,180        99,460        99,460  

Level 2 inputs:

            

Securities held to maturity

      459,897        446,287        514,844        518,165  

Restricted equity securities

      17,250        N/A        16,956        N/A  

Level 3 inputs:

            

Loans, net

      3,995,833        3,987,841        2,984,842        2,992,225  

Financial liabilities:

            

Level 2 inputs:

            

Deposits

      5,093,117        5,088,024        4,009,131        4,006,620  

Other borrowings

      282,831        282,831        122,166        122,166  

Level 3 inputs:

            

Junior subordinated debt

      56,996        58,930        56,858        58,466  
     Contract      Fair      Contract      Fair  
   Amount      Value      Amount      Value  

Off-balance sheet:

            

Level 3 inputs:

            

Commitments

    $ 1,225,542      $ 12,255      $ 933,542      $ 9,335  

Standby letters of credit

      11,277        113        13,075        131  

Overdraft privilege commitments

      107,956        1,080        98,260        983