Fair Value Measurements (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
Fair Value Disclosures [Abstract] |
|
Fair value of Mortgage Loans Held for Sale |
The following table presents a summary of mortgage loans held for sale accounted for under the fair value option: | | | | | | | | (Dollars in thousands) | | | December 31, | 2019 |
| 2018 |
| Aggregate fair value |
| $27,833 |
|
| $20,996 |
| Aggregate principal balance | 27,168 |
| 20,498 |
| Difference between fair value and principal balance |
| $665 |
|
| $498 |
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following tables present the balances of assets and liabilities reported at fair value 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) | December 31, 2019 | | | | Assets: | | | | | | | | Available for sale debt securities: | | | | | | | | Obligations of U.S. government-sponsored enterprises |
| $157,648 |
| |
| $— |
| |
| $157,648 |
| |
| $— |
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 719,080 |
| | — |
| | 719,080 |
| | — |
| Individual name issuer trust preferred debt securities | 12,579 |
| | — |
| | 12,579 |
| | — |
| Corporate bonds | 10,183 |
| | — |
| | 10,183 |
| | — |
| Mortgage loans held for sale | 27,833 |
| | — |
| | 27,833 |
| | — |
| Derivative assets | 28,864 |
| | — |
| | 28,864 |
| | — |
| Total assets at fair value on a recurring basis |
| $956,187 |
| |
| $— |
| |
| $956,187 |
| |
| $— |
| Liabilities: | | | | | | | | Derivative liabilities |
| $29,381 |
| |
| $— |
| |
| $29,381 |
| |
| $— |
| Total liabilities at fair value on a recurring basis |
| $29,381 |
| |
| $— |
| |
| $29,381 |
| |
| $— |
|
| | | | | | | | | | | | | | | | | (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) | December 31, 2018 | | | | Assets: | | | | | | | | Available for sale debt securities: | | | | | | | | Obligations of U.S. government-sponsored enterprises |
| $242,683 |
| |
| $— |
| |
| $242,683 |
| |
| $— |
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 660,793 |
| | — |
| | 660,793 |
| | — |
| Obligations of states and political subdivisions | 937 |
| | — |
| | 937 |
| | — |
| Individual name issuer trust preferred debt securities | 11,772 |
| | — |
| | 11,772 |
| | — |
| Corporate bonds | 11,625 |
| | — |
| | 11,625 |
| | — |
| Mortgage loans held for sale | 20,996 |
| | — |
| | 20,996 |
| | — |
| Derivative assets | 3,966 |
| | — |
| | 3,966 |
| | — |
| Total assets at fair value on a recurring basis |
| $952,772 |
| |
| $— |
| |
| $952,772 |
| |
| $— |
| Liabilities: | | | | | | | | Derivative liabilities |
| $3,202 |
| |
| $— |
| |
| $3,202 |
| |
| $— |
| Total liabilities at fair value on a recurring basis |
| $3,202 |
| |
| $— |
| |
| $3,202 |
| |
| $— |
|
|
Fair Value of Contingent Consideration Rollforward |
The following table presents the change in the contingent consideration liability, which is included in other liabilities in the Consolidated Balance Sheets. | | | | | | | | (Dollars in thousands) | | | Years ended December 31, | 2019 |
| 2018 |
| Beginning Balance |
| $— |
|
| $1,404 |
| Change in fair value | — |
| (187 | ) | Payments | — |
| (1,217 | ) | Ending Balance |
| $— |
|
| $— |
|
|
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis |
The following table presents the carrying value of assets held at December 31, 2019, which were written down to fair value during the year ended December 31, 2019: | | | | | | | | | | | | | | | | | (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) | Assets: | | | | | | | | Collateral dependent impaired loans |
| $1,448 |
| |
| $— |
| |
| $— |
| |
| $1,448 |
| Property acquired through foreclosure or repossession | 1,109 |
| | — |
| | — |
| | 1,109 |
| Total assets at fair value on a nonrecurring basis |
| $2,557 |
| |
| $— |
| |
| $— |
| |
| $2,557 |
|
The allowance for loan losses on collateral dependent impaired loans amounted to $871 thousand at December 31, 2019. In 2019, a write-down valuation adjustment of $1.0 million on property acquired through foreclosure or repossession was recognized and included in other noninterest expenses in the Consolidated Statements of Income.
The following table presents the carrying value of assets held at December 31, 2018, which were written down to fair value during the year ended December 31, 2018: | | | | | | | | | | | | | | | | | (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) | Assets: | | | | | | | | Collateral dependent impaired loans |
| $883 |
| |
| $— |
| |
| $— |
| |
| $883 |
| Property acquired through foreclosure or repossession | 2,142 |
| | — |
| | — |
| | 2,142 |
| Total assets at fair value on a nonrecurring basis |
| $3,025 |
| |
| $— |
| |
| $— |
| |
| $3,025 |
|
The allowance for loan losses on collateral dependent impaired loans amounted to $24 thousand at December 31, 2018. In 2018, a write-down valuation adjustment of $1.0 million on property acquired through foreclosure or repossession was recognized and included in other noninterest expenses in the Consolidated Statements of Income.
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Qualitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis |
The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: | | | | | | | | | | (Dollars in thousands) | Fair Value | | Valuation Technique | | Unobservable Input | Range of Inputs Utilized (Weighted Average) | December 31, 2019 | | | Collateral dependent impaired loans |
| $1,448 |
| | Appraisals of collateral | | Discount for costs to sell | 0% - 20% (5%) | | | | | | Appraisal adjustments (1) | 0% - 100% (67%) | Property acquired through foreclosure or repossession | 1,109 |
| | Appraisals of collateral | | Discount for costs to sell | 12% | | | | | | Appraisal adjustments (1) | 22% |
| | (1) | Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. |
| | | | | | | | | | (Dollars in thousands) | Fair Value | | Valuation Technique | | Unobservable Input | Range of Inputs Utilized (Weighted Average) | December 31, 2018 | | | Collateral dependent impaired loans |
| $883 |
| | Appraisals of collateral | | Discount for costs to sell | 0% - 10% (10%) | | | | | | Appraisal adjustments (1) | 0% - 100% (2%) | Property acquired through foreclosure or repossession | 2,142 |
| | Appraisals of collateral | | Discount for costs to sell | 13% | | | | | | Appraisal adjustments (1) | 12% - 28% (20%) |
| | (1) | Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. |
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Carrying Amounts, Estimated Fair Values and Fair Value Hierarchy of Financial Instruments |
The estimated fair values and related carrying amounts for financial instruments for which fair value is only disclosed are presented below as of the periods indicated. The tables exclude financial instruments for which the carrying value approximates fair value such as cash and cash equivalents, FHLB stock, accrued interest receivable, bank-owned life insurance, non-maturity deposits and accrued interest payable. | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Carrying Amount | | Total Fair Value | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | December 31, 2019 | | | | | Financial Assets: | | | | | | | | | | Loans, net of allowance for loan losses |
| $3,865,985 |
| |
| $3,869,192 |
| |
| $— |
| |
| $— |
| |
| $3,869,192 |
| | | | | | | | | | | Financial Liabilities: | | | | | | | | | | Time deposits |
| $1,069,323 |
| |
| $1,082,830 |
| |
| $— |
| |
| $1,082,830 |
| |
| $— |
| FHLB advances | 1,141,464 |
| | 1,145,242 |
| | — |
| | 1,145,242 |
| | — |
| Junior subordinated debentures | 22,681 |
| | 19,628 |
| | — |
| | 19,628 |
| | — |
|
| | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Carrying Amount | | Total Fair Value | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | December 31, 2018 | | | | | Financial Assets: | | | | | | | | | | Held to maturity debt securities |
| $10,415 |
| |
| $10,316 |
| |
| $— |
| |
| $10,316 |
| |
| $— |
| Loans, net of allowance for loan losses | 3,653,288 |
| | 3,598,025 |
| | — |
| | — |
| | 3,598,025 |
| | | | | | | | | | | Financial Liabilities: | | | | | | | | | | Time deposits |
| $1,255,108 |
| |
| $1,269,433 |
| |
| $— |
| |
| $1,269,433 |
| |
| $— |
| FHLB advances | 950,722 |
| | 950,691 |
| | — |
| | 950,691 |
| | — |
| Junior subordinated debentures | 22,681 |
| | 19,226 |
| | — |
| | 19,226 |
| | — |
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