Fair Value Measurements (Tables)
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3 Months Ended |
Mar. 31, 2015
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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) | | March 31, 2015 | | (Dollars in thousands) | Recurring fair value measurements | | | | | | | | Assets | | | | | | | | Trading securities | $ | 494 |
| | $ | 494 |
| | $ | — |
| | $ | — |
| Securities available for sale | | | | | | | | U.S. Government agency securities | 46,504 |
| | — |
| | 46,504 |
| | $ | — |
| Agency mortgage-backed securities | 254,089 |
| | — |
| | 254,089 |
| | — |
| Agency collateralized mortgage obligations | 60,288 |
| | — |
| | 60,288 |
| | — |
| State, county, and municipal securities | 4,977 |
| | — |
| | 4,977 |
| | — |
| Single issuer trust preferred securities issued by banks and insurers | 2,910 |
| | — |
| | 2,910 |
| | — |
| Pooled trust preferred securities issued by banks and insurers | 6,272 |
| | — |
| | — |
| | 6,272 |
| Equity securities | 11,998 |
| | 11,998 |
| | — |
| | — |
| Loans held for sale | 9,507 |
| | — |
| | 9,507 |
| | — |
| Derivative instruments | 28,535 |
| | — |
| | 28,535 |
| | — |
| Liabilities | | | | | | | | Derivative Instruments | 33,402 |
| | — |
| | 33,402 |
| | — |
| Total recurring fair value measurements | $ | 392,172 |
| | $ | 12,492 |
| | $ | 373,408 |
| | $ | 6,272 |
| | | | | | | | | Nonrecurring fair value measurements | | | | | | | | Assets | | | | | | | | Collateral dependent impaired loans | $ | 7,559 |
| | $ | — |
| | $ | — |
| | $ | 7,559 |
| Other real estate owned and other foreclosed assets | 6,285 |
| | — |
| | — |
| | 6,285 |
| Total nonrecurring fair value measurements | $ | 13,844 |
| | $ | — |
| | $ | — |
| | $ | 13,844 |
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| | | | | | | | | | | | | | | | | | | | 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) | | December 31, 2014 | | (Dollars in thousands) | Recurring fair value measurements | | | | | | | | Assets | | | | | | | | Securities available for sale | | | | | | | | U.S. Government agency securities | $ | 41,486 |
| | $ | — |
| | $ | 41,486 |
| | $ | — |
| Agency mortgage-backed securities | 217,678 |
| | — |
| | 217,678 |
| | — |
| Agency collateralized mortgage obligations | 63,035 |
| | — |
| | 63,035 |
| | — |
| State, county, and municipal securities | 5,223 |
| | | | 5,223 |
| | | Single issuer trust preferred securities issued by banks and insurers | 2,909 |
| | — |
| | 2,909 |
| | — |
| Pooled trust preferred securities issued by banks and insurers | 6,321 |
| | — |
| | — |
| | 6,321 |
| Equity securities | 11,902 |
| | 11,902 |
| | — |
| | — |
| Loans held for sale | 6,888 |
| | — |
| | 6,888 |
| | — |
| Derivative instruments | 22,688 |
| | — |
| | 22,688 |
| | — |
| Liabilities | | | | | | | | Derivative instruments | 27,950 |
| | — |
| | 27,950 |
| | — |
| Total recurring fair value measurements | $ | 350,180 |
| | $ | 11,902 |
| | $ | 331,957 |
| | $ | 6,321 |
| | | | | | | | | Nonrecurring fair value measurements: | | | | | | | | Assets | | | | | | | | Collateral dependent impaired loans | $ | 8,196 |
| | $ | — |
| | $ | — |
| | $ | 8,196 |
| Other real estate owned and other foreclosed assets | 7,743 |
| | — |
| | — |
| | 7,743 |
| Total nonrecurring fair value measurements | $ | 15,939 |
| | $ | — |
| | $ | — |
| | $ | 15,939 |
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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), which were valued using pricing models and discounted cash flow methodologies, as of the dates indicated: | | | | | | | | | | Securities Available for Sale: | | (Dollars in thousands) | | Three Months Ended March 31, 2015 | | Three Months Ended March 31, 2014 | Pooled Trust Preferred Securities | | | | Beginning balance | $ | 6,321 |
| | $ | 3,841 |
| Gains (losses) (realized/unrealized) | | | | Included in other comprehensive income | (4 | ) | | 1,162 |
| Settlements | (45 | ) | | (36 | ) | Ending balance | $ | 6,272 |
| | $ | 4,967 |
|
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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: | | | | | | | | | | | | | | | | | | | | | | March 31 | | December 31 | | | | March 31 | | December 31 | | March 31 | | December 31 | | | 2015 | | 2014 | | | | 2015 | | 2014 | | 2015 | | 2014 | Valuation Technique | | Fair Value | | Unobservable Inputs | | Range | | Weighted Average | | | (Dollars in Thousands) | | | Discounted cash flow methodology | | | | | | | | | | | Pooled trust preferred securities | | $ | 6,272 |
| | $ | 6,321 |
| | Cumulative prepayment | | 0% - 75% | | 0% - 75% | | 6.9% | | 7.0% | | | | | | | Cumulative default | | 3% - 100% | | 3% - 100% | | 13.3% | | 13.9% | | | | | | | Loss given default | | 85% - 100% | | 85% - 100% | | 95.9% | | 96.1% | | | | | | | Cure given default | | 0% - 75% | | 0% - 75% | | 39.2% | | 46.7% | Appraisals of collateral (1) | | | | | | | | | | | Impaired loans | | $ | 7,559 |
| | $ | 8,196 |
| | | | | | | | | | | Other real estate owned and foreclosed assets | | $ | 6,285 |
| | $ | 7,743 |
| | | | | | | | | | |
| | (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 | | Carrying Value | | Fair Value | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | March 31, 2015 | | (Dollars in thousands) | Financial assets | | | | Securities held to maturity(a) | | | | | | | | | | U.S. Treasury securities | $ | 1,010 |
| | $ | 1,089 |
| | $ | — |
| | $ | 1,089 |
| | $ | — |
| Agency mortgage-backed securities | 164,830 |
| | 170,879 |
| | — |
| | 170,879 |
| | — |
| Agency collateralized mortgage obligations | 221,979 |
| | 223,317 |
| | — |
| | 223,317 |
| | — |
| State, county, and municipal securities | 424 |
| | 429 |
| | — |
| | 429 |
| | — |
| Single issuer trust preferred securities issued by banks | 1,500 |
| | 1,508 |
| | — |
| | 1,508 |
| | — |
| Corporate debt securities | 5,002 |
| | 5,100 |
| | — |
| | 5,100 |
| | — |
| Loans, net of allowance for loan losses(b) | 5,338,603 |
| | 5,322,319 |
| | — |
| | — |
| | 5,322,319 |
| Financial liabilities | | | | | | | | | | Time certificates of deposits(c) | $ | 746,533 |
| | $ | 748,991 |
| | $ | — |
| | $ | 748,991 |
| | $ | — |
| Federal Home Loan Bank borrowings(c) | 108,246 |
| | 108,980 |
| | — |
| | 108,980 |
| | — |
| Customer repurchase agreements and other short-term borrowings(c) | 128,138 |
| | 128,224 |
| | — |
| | — |
| | 128,224 |
| Wholesale repurchase agreements(c) | 50,000 |
| | 50,333 |
| | — |
| | — |
| | 50,333 |
| Junior subordinated debentures(d) | 73,631 |
| | 73,837 |
| | — |
| | 73,837 |
| | — |
| Subordinated debentures(c) | 35,000 |
| | 35,645 |
| | — |
| | — |
| | 35,645 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at Reporting Date Using | | Carrying Value | | 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, 2014 | | (Dollars in thousands) | Financial assets | | Securities held to maturity(a) | | | | | | | | | | U.S. Treasury securities | $ | 1,010 |
| | $ | 1,073 |
| | $ | — |
| | $ | 1,073 |
| | $ | — |
| Agency mortgage-backed securities | 159,522 |
| | 164,944 |
| | — |
| | 164,944 |
| | — |
| Agency collateralized mortgage obligations | 207,995 |
| | 206,658 |
| | — |
| | 206,658 |
| | — |
| State, county, and municipal securities | 424 |
| | 428 |
| | — |
| | 428 |
| | — |
| Single issuer trust preferred securities issued by banks | 1,500 |
| | 1,477 |
| | — |
| | 1,477 |
| | — |
| Corporate debt securities | 5,002 |
| | 5,119 |
| | — |
| | 5,119 |
| | — |
| Loans, net of allowance for loan losses(b) | 4,915,633 |
| | 4,883,479 |
| | — |
| | — |
| | 4,883,479 |
| Financial liabilities | | |
| | | | | | | Time certificates of deposits(c) | $ | 649,620 |
| | $ | 651,180 |
| | $ | — |
| | $ | 651,180 |
| | $ | — |
| Federal Home Loan Bank borrowings(c) | 70,080 |
| | 70,208 |
| | — |
| | 70,208 |
| | — |
| Customer repurchase agreements and other short-term borrowings(c) | 147,890 |
| | 147,890 |
| | — |
| | — |
| | 147,890 |
| Wholesale repurchase agreements(c) | 50,000 |
| | 50,510 |
| | — |
| | — |
| | 50,510 |
| Junior subordinated debentures(d) | 73,685 |
| | 70,045 |
| | — |
| | 70,045 |
| | — |
| Subordinated debentures(c) | 65,000 |
| | 64,198 |
| | — |
| | — |
| | 64,198 |
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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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