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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2015
Fair Value Disclosures [Abstract]  
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


 
 
 
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

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



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.
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

 

 
 
 
 
 
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


(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.