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Fair Value Measurements (Tables)
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9 Months Ended |
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Sep. 30, 2013
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| Fair Value Disclosures [Abstract] |
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| Assets and liabilities measured at fair value on a recurring basis |
Assets and liabilities measured at fair value at the periods indicated were as follows:
| | | | | | | | | | | | | | | | | | | | Fair Value Measurements at Reporting Date Using | | Balance | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | September 30, 2013 | | (Dollars in thousands) | Recurring fair value measurements | | | | | | | | Assets | | | | | | | | Securities available for sale | | | | | | | | U.S. Government agency securities | $ | 19,599 |
| | $ | — |
| | $ | 19,599 |
| | $ | — |
| Agency mortgage-backed securities | 183,361 |
| | — |
| | 183,361 |
| | — |
| Agency collateralized mortgage obligations | 61,255 |
| | — |
| | 61,255 |
| | — |
| Private mortgage-backed securities | 2,863 |
| | — |
| | — |
| | 2,863 |
| Single issuer trust preferred securities issued by banks | 2,173 |
| | — |
| | 2,173 |
| | — |
| Pooled trust preferred securities issued by banks and insurers | 3,971 |
| | — |
| | — |
| | 3,971 |
| Marketable securities | 11,176 |
| | 11,176 |
| | — |
| | — |
| Loans held for sale | 10,667 |
| | — |
| | 10,667 |
| | — |
| Derivative instruments | 20,127 |
| | — |
| | 20,127 |
| | — |
| Liabilities | | | | | | | | Derivative instruments | 31,128 |
| | — |
| | 31,128 |
| | — |
| Total recurring fair value measurements | $ | 284,064 |
| | $ | 11,176 |
| | $ | 266,054 |
| | $ | 6,834 |
| | | | | | | | | Nonrecurring fair value measurements | | | | | | | | Assets | | | | | | | | Collateral dependent impaired loans | $ | 13,085 |
| | $ | — |
| | $ | — |
| | $ | 13,085 |
| Other real estate owned | 9,188 |
| | — |
| | — |
| | 9,188 |
| Total nonrecurring fair value measurements | $ | 22,273 |
| | $ | — |
| | $ | — |
| | $ | 22,273 |
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| | | | | | | | | | | | | | | | | | December 31, 2012 | | (Dollars in thousands) | Recurring fair value measurements | | | | | | | | Assets | | | | | | | | Securities available for sale | | | | | | | | U.S. government agency securities | $ | 20,822 |
| | $ | — |
| | $ | 20,822 |
| | $ | — |
| Agency mortgage-backed securities | 221,425 |
| | — |
| | 221,425 |
| | — |
| Agency collateralized mortgage obligations | 68,376 |
| | — |
| | 68,376 |
| | — |
| Private mortgage-backed securities | 3,532 |
| | — |
| | — |
| | 3,532 |
| Single issuer trust preferred securities issued by banks | 2,240 |
| | — |
| | 2,240 |
| | — |
| Pooled trust preferred securities issued by banks and insurers | 2,981 |
| | — |
| | — |
| | 2,981 |
| Marketable securities | 9,910 |
| | 9,910 |
| | — |
| | — |
| Loans held for sale | 48,187 |
| | — |
| | 48,187 |
| | — |
| Derivative instruments | 30,528 |
| | — |
| | 30,528 |
| | — |
| Liabilities | | | | | | | | Derivative instruments | 46,793 |
| | — |
| | 46,793 |
| | — |
| Total recurring fair value measurements | $ | 361,208 |
| | $ | 9,910 |
| | $ | 344,785 |
| | $ | 6,513 |
| | | | | | | | | Nonrecurring fair value measurements | | | | | | | | Assets | | | | | | | | Collateral dependent impaired loans | $ | 7,817 |
| | $ | — |
| | $ | — |
| | $ | 7,817 |
| Other real estate owned | 11,974 |
| | — |
| | — |
| | 11,974 |
| Total nonrecurring fair value measurements | $ | 19,791 |
| | $ | — |
| | $ | — |
| | $ | 19,791 |
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| Reconciliation for all assets and liabilities measured at fair value on a recurring basis |
The table below presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). These instruments were valued using pricing models and discounted cash flow methodologies.
| | | | | | | | | | | | | | | | | | Securities Available for Sale: | | Pooled Trust Preferred Securities | | Single Trust Preferred Securities | | Private Mortgage- Backed Securities | | Total | | (Dollars in thousands) | Balance at June 30, 2013 | $ | 3,617 |
| | $ | — |
| | $ | 3,036 |
| | $ | 6,653 |
| Gains and (losses) (realized/unrealized) | | | | | | | | Included in other comprehensive income | 399 |
| | — |
| | 46 |
| | 445 |
| Settlements | (45 | ) | | — |
| | (219 | ) | | (264 | ) | Balance at September 30, 2013 | $ | 3,971 |
| | $ | — |
| | $ | 2,863 |
| | $ | 6,834 |
| | | | | | | | | Balance at January 1, 2012 | $ | 2,820 |
| | $ | 4,210 |
| | $ | 6,110 |
| | $ | 13,140 |
| Gains and (losses) (realized/unrealized) | | | | | | | | Included in earnings | — |
| | — |
| | (76 | ) | | (76 | ) | Included in other comprehensive income | 313 |
| | 703 |
| | 411 |
| | 1,427 |
| Settlements | (152 | ) | | — |
| | (2,913 | ) | | (3,065 | ) | Transfers into (out of) level 3 | — |
| | (4,913 | ) | | — |
| | (4,913 | ) | Balance at December 31, 2012 | $ | 2,981 |
| | $ | — |
| | $ | 3,532 |
| | $ | 6,513 |
| Gains and (losses) (realized/unrealized) | | | | | | | | Included in other comprehensive income | 1,230 |
| | — |
| | (43 | ) | | 1,187 |
| Settlements | (240 | ) | | — |
| | (626 | ) | | (866 | ) | Balance at September 30, 2013 | $ | 3,971 |
| | $ | — |
| | $ | 2,863 |
| | $ | 6,834 |
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| Investments in securities that are classified as level 3 |
The following table sets forth certain unobservable inputs regarding the Company’s investment in securities that are classified as Level 3 for the periods indicated:
| | | | | | | | | | | | | | | Fair Value | | Valuation Technique(s) | | Unobservable Inputs | | Range | | Weighted
Average | | (Dollars in thousands) | | September 30, 2013 | Pooled trust preferred securities | $ | 3,971 |
| | Discounted cash flow methodology | | Cumulative Prepayment | | 0%-76.0% | | 7.2 | % | | | | | | Cumulative Default | | 2.9%-100.0% | | 17.8 | % | | | | | | Loss Given Default | | 85.0% - 100.0% | | 95.7 | % | | | | | | Cure Given Default | | 0% - 75.0% | | 42.7 | % | Private mortgage-backed securities | $ | 2,863 |
| | Multi-dimensional spread tables | | Cumulative Prepayment Rate | | 14.4%-14.5% | | 14.5 | % | | | | | | Constant Default Rate | | 0.8% -20.3% | | 4.1 | % | | | | | | Severity | | 21.0% -50.0% | | 33.9 | % | Impaired loans | $ | 13,085 |
| | Appraisals of collateral (1) | | | | | | | Other real estate owned | $ | 9,188 |
| | Appraisals of collateral (1) | | | | | | | | December 31, 2012 | Pooled trust preferred securities | $ | 2,981 |
| | Discounted cash flow methodology | | Cumulative Prepayment | | 0%-76.0% | | 7.5 | % | | | | | | Cumulative Default | | 3.0%-100.0% | | 19.6 | % | | | | | | Loss Given Default | | 85.0% - 100.0% | | 94.9 | % | | | | | | Cure Given Default | | 0% - 75.0% | | 33.8 | % | Private mortgage-backed securities | $ | 3,532 |
| | Multi-dimensional spread tables | | Cumulative Prepayment Rate | | 10.3%-14.5% | | 13.9 | % | | | | | | Constant Default Rate | | 0.9% -20.4% | | 4.0 | % | | | | | | Severity | | 20.0% -55.0% | | 33.6 | % | Impaired loans | $ | 7,817 |
| | Appraisals of collateral (1) | | | | | | | Other real estate owned | $ | 11,974 |
| | Appraisals of collateral (1) | | | | | | |
| | (1) | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. |
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| The estimated fair values and related carrying amounts for assets and liabilities |
The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated:
| | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at Reporting Date Using | | Book Value | | Fair Value | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | September 30, 2013 | | (Dollars in thousands) | Financial assets | | | | | | | | | | Securities held to maturity (a) | | U.S. Treasury securities | $ | 1,012 |
| | $ | 1,069 |
| | — |
| | $ | 1,069 |
| | — |
| Agency mortgage-backed securities | 115,983 |
| | 118,830 |
| | — |
| | 118,830 |
| | — |
| Agency collateralized mortgage obligations | 193,190 |
| | 189,256 |
| | — |
| | 189,256 |
| | — |
| State, county, and municipal securities | 676 |
| | 687 |
| | — |
| | 687 |
| | — |
| Single issuer trust preferred securities issued by banks | 1,507 |
| | 1,529 |
| | — |
| | 1,529 |
| | — |
| Corporate debt securities | 5,005 |
| | 5,226 |
| | — |
| | 5,226 |
| | — |
| Loans, net of allowance for loan losses (b) | 4,502,467 |
| | 4,504,271 |
| | — |
| | — |
| | 4,504,271 |
| Financial liabilities | | | | | | | | | | Time certificates of deposits (c) | $ | 691,616 |
| | $ | 695,350 |
| | — |
| | $ | 695,350 |
| | — |
| Federal home loan bank advances and other borrowings (c) | 189,539 |
| | 188,238 |
| | — |
| | 188,238 |
| | — |
| Wholesale and customer repurchase agreements (c) | 214,180 |
| | 215,704 |
| | — |
| | — |
| | 215,704 |
| Junior subordinated debentures (d) | 73,962 |
| | 72,573 |
| | — |
| | 72,573 |
| | — |
| Subordinated debentures (c) | 30,000 |
| | 24,890 |
| | — |
| | — |
| | 24,890 |
| | December 31, 2012 | | (Dollars in thousands) | Financial assets | | | | | | | | | | Securities held to maturity (a) | | U.S. Treasury securities | $ | 1,013 |
| | $ | 1,134 |
| | $ | — |
| | $ | 1,134 |
| | $ | — |
| Agency mortgage-backed securities | 72,360 |
| | 76,593 |
| | — |
| | 76,593 |
| | — |
| Agency collateralized mortgage obligations | 97,507 |
| | 100,380 |
| | — |
| | 100,380 |
| | — |
| State, county, and municipal securities | 915 |
| | 926 |
| | — |
| | 926 |
| | — |
| Single issuer trust preferred securities issued by banks | 1,516 |
| | 1,526 |
| | — |
| | 1,526 |
| | — |
| Corporate debt securities | 5,007 |
| | 5,265 |
| | — |
| | 5,265 |
| | — |
| Loans, net of allowance for loan losses (b) | 4,467,177 |
| | 4,462,580 |
| | — |
| | — |
| | 4,462,580 |
| Financial liabilities | | | | | | | | | | Time certificates of deposits (c) | $ | 753,125 |
| | $ | 759,516 |
| | $ | — |
| | $ | 759,516 |
| | $ | — |
| Federal home loan bank advances and other borrowings (c) | 283,569 |
| | 293,580 |
| | — |
| | 293,580 |
| | — |
| Wholesale and customer repurchase agreements (c) | 203,359 |
| | 201,189 |
| | — |
| | — |
| | 201,189 |
| Junior subordinated debentures (d) | 74,127 |
| | 74,416 |
| | — |
| | 74,416 |
| | — |
| Subordinated debentures (c) | 30,000 |
| | 22,762 |
| | — |
| | — |
| | 22,762 |
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| | (a) | The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analyses. |
| | (b) | Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows. |
| | (c) | Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities. |
| | (d) | Fair value was determined based upon market prices of securities with similar terms and maturities. |
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