|
FAIR VALUE MEASUREMENTS (Tables)
|
3 Months Ended |
|
Mar. 31, 2014
|
| FAIR VALUE MEASUREMENTS [Abstract] |
|
| Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis |
The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at March 31, 2014 and December 31, 2013 (dollars in thousands):
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Fair Value Measurements at March 31, 2014 using
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Quoted Prices in Active Markets for Identical Assets
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Significant Other Observable Inputs
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Significant Unobservable Inputs
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|
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Level 1
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Level 2
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Level 3
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Balance
|
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ASSETS
|
|
|
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|
|
|
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|
|
|
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Interest rate swap - loans
|
$
|
-
|
|
$
|
16
|
|
$
|
-
|
|
$
|
16
|
|
Cash flow hedge - prime loan swap
|
|
-
|
|
|
13
|
|
|
-
|
|
|
13
|
|
Interest rate lock commitments
|
|
-
|
|
|
-
|
|
|
538
|
|
|
538
|
|
Securities available for sale:
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U.S. government and agency securities
|
|
-
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3,174
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|
-
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|
3,174
|
|
Obligations of states and political subdivisions
|
|
-
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|
433,651
|
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|
-
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|
433,651
|
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Corporate and other bonds
|
|
-
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|
72,622
|
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|
-
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|
72,622
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Mortgage-backed securities
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|
-
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|
555,963
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|
-
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|
555,963
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Other securities
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|
-
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13,289
|
|
|
-
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|
13,289
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LIABILITIES
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Interest rate swap - loans
|
$
|
-
|
|
$
|
16
|
|
$
|
-
|
|
$
|
16
|
|
Cash flow hedge - trust preferred
|
|
-
|
|
|
3,784
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|
-
|
|
|
3,784
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Fair Value Measurements at December 31, 2013 using
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|
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|
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|
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Quoted Prices in Active Markets for Identical Assets
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Significant Other Observable Inputs
|
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Significant Unobservable Inputs
|
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Level 1
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Level 2
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Level 3
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Balance
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ASSETS
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|
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|
Interest rate swap - loans
|
$
|
-
|
|
$
|
33
|
|
$
|
-
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|
$
|
33
|
|
Securities available for sale:
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U.S. government and agency securities
|
|
-
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2,153
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-
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2,153
|
|
Obligations of states and political subdivisions
|
|
-
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|
254,830
|
|
|
-
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|
254,830
|
|
Corporate and other bonds
|
|
-
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9,434
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|
-
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9,434
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Mortgage-backed securities
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|
-
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407,362
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|
|
-
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|
407,362
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Other securities
|
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-
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3,569
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-
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3,569
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LIABILITIES
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Interest rate swap - loans
|
$
|
-
|
|
$
|
33
|
|
$
|
-
|
|
$
|
33
|
|
Cash flow hedge - prime loan swap
|
|
-
|
|
|
516
|
|
|
-
|
|
|
516
|
|
Cash flow hedge - trust preferred
|
|
-
|
|
|
3,046
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|
-
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|
3,046
|
|
| Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis |
The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at March 31, 2014 and December 31, 2013 (dollars in thousands):
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Fair Value Measurements at March 31, 2014 using
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|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
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|
Balance
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ASSETS
|
|
|
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Loans held for sale
|
$
|
-
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$
|
48,215
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$
|
-
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|
$
|
48,215
|
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Impaired loans
|
|
-
|
|
|
-
|
|
|
3,865
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|
3,865
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Other real estate owned
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|
-
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|
-
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35,487
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35,487
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Fair Value Measurements at December 31, 2013 using
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
|
ASSETS
|
|
|
|
|
|
|
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|
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|
Loans held for sale
|
$
|
-
|
|
$
|
53,185
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|
$
|
-
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|
$
|
53,185
|
|
Impaired loans
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|
-
|
|
|
-
|
|
|
7,985
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|
|
7,985
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|
Other real estate owned
|
|
-
|
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|
-
|
|
|
34,116
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|
34,116
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| Summary of Quantitative Information About Level 3 Fair Value Measurements |
The following table displays quantitative information about Level 3 Fair Value Measurements for March 31, 2014 (dollars in thousands):
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|
|
Fair Value Measurements at March 31, 2014
|
|
|
Fair Value
|
Valuation Technique(s)
|
Unobservable Inputs
|
Weighted Average
|
|
ASSETS
|
|
|
|
|
|
|
Commercial Construction
|
$
|
434
|
Market comparables
|
Discount applied to market comparables (1)
|
8%
|
|
Commercial Real Estate - Owner Occupied
|
|
149
|
Market comparables
|
Discount applied to market comparables (1)
|
0%
|
|
Raw Land and Lots
|
|
606
|
Market comparables
|
Discount applied to market comparables (1)
|
0%
|
|
Single Family Investment Real Estate
|
|
2,023
|
Market comparables
|
Discount applied to market comparables (1)
|
2%
|
|
Commercial and Industrial
|
|
341
|
Market comparables
|
Discount applied to market comparables (1)
|
16%
|
|
Other (2)
|
|
312
|
Market comparables
|
Discount applied to market comparables (1)
|
21%
|
|
Total Impaired Loans
|
|
3,865
|
|
|
|
|
|
|
|
|
|
|
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Other real estate owned
|
|
35,487
|
Market comparables
|
Discount applied to market comparables (1)
|
30%
|
|
Total
|
$
|
39,352
|
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|
|
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|
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(1) A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market.
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(2) The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer.
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The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2013 (dollars in thousands):
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|
|
|
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|
|
Fair Value Measurements at December 31, 2013
|
|
|
Fair Value
|
Valuation Technique(s)
|
Unobservable Inputs
|
Weighted Average
|
|
ASSETS
|
|
|
|
|
|
|
Commercial Construction
|
$
|
219
|
Market comparables
|
Discount applied to market comparables (1)
|
0%
|
|
Commercial Real Estate - Owner Occupied
|
|
2,043
|
Market comparables
|
Discount applied to market comparables (1)
|
17%
|
|
Raw Land and Lots
|
|
908
|
Market comparables
|
Discount applied to market comparables (1)
|
10%
|
|
Single Family Investment Real Estate
|
|
1,332
|
Market comparables
|
Discount applied to market comparables (1)
|
0%
|
|
Commercial and Industrial
|
|
1,719
|
Market comparables
|
Discount applied to market comparables (1)
|
28%
|
|
Other (2)
|
|
1,764
|
Market comparables
|
Discount applied to market comparables (1)
|
0%
|
|
Total Impaired Loans
|
|
7,985
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
34,116
|
Market comparables
|
Discount applied to market comparables (1)
|
33%
|
|
Total
|
$
|
42,101
|
|
|
|
|
|
|
|
|
|
|
|
(1) A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market.
|
|
(2) The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer.
|
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|
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|
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|
|
| Carrying Values and Estimated Fair Values of the Company's Financial Instruments |
The carrying values and estimated fair values of the Company’s financial instruments as of March 31, 2014 and December 31, 2013 are as follows (dollars in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at March 31, 2014 using
|
|
|
|
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
Total Fair Value
|
|
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
142,250
|
|
$
|
142,250
|
|
$
|
-
|
|
$
|
-
|
|
$
|
142,250
|
|
Securities available for sale
|
|
1,078,699
|
|
|
-
|
|
|
1,078,699
|
|
|
-
|
|
|
1,078,699
|
|
Restricted stock
|
|
42,441
|
|
|
-
|
|
|
42,441
|
|
|
-
|
|
|
42,441
|
|
Interest rate lock commitments
|
|
538
|
|
|
-
|
|
|
-
|
|
|
538
|
|
|
538
|
|
Loans held for sale
|
|
48,215
|
|
|
-
|
|
|
48,215
|
|
|
-
|
|
|
48,215
|
|
Net loans
|
|
5,243,291
|
|
|
-
|
|
|
-
|
|
|
5,294,475
|
|
|
5,294,475
|
|
Interest rate swap - loans
|
|
16
|
|
|
-
|
|
|
16
|
|
|
-
|
|
|
16
|
|
Cash flow hedge - prime loan swap
|
|
13
|
|
|
-
|
|
|
13
|
|
|
-
|
|
|
13
|
|
Accrued interest receivable
|
|
22,140
|
|
|
-
|
|
|
22,140
|
|
|
-
|
|
|
22,140
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Deposits
|
$
|
5,686,131
|
|
$
|
-
|
|
$
|
5,690,618
|
|
$
|
-
|
|
$
|
5,690,618
|
|
Borrowings
|
|
572,698
|
|
|
-
|
|
|
550,111
|
|
|
-
|
|
|
550,111
|
|
Accrued interest payable
|
|
2,136
|
|
|
-
|
|
|
2,136
|
|
|
-
|
|
|
2,136
|
|
Interest rate swap - loans
|
|
16
|
|
|
-
|
|
|
16
|
|
|
-
|
|
|
16
|
|
Cash flow hedge - trust preferred
|
|
3,784
|
|
|
-
|
|
|
3,784
|
|
|
-
|
|
|
3,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2013 using
|
|
|
|
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
Total Fair Value
|
|
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
73,023
|
|
$
|
73,023
|
|
$
|
-
|
|
$
|
-
|
|
$
|
73,023
|
|
Securities available for sale
|
|
677,348
|
|
|
-
|
|
|
677,348
|
|
|
-
|
|
|
677,348
|
|
Restricted stock
|
|
26,036
|
|
|
-
|
|
|
26,036
|
|
|
-
|
|
|
26,036
|
|
Loans held for sale
|
|
53,185
|
|
|
-
|
|
|
53,185
|
|
|
-
|
|
|
53,185
|
|
Net loans
|
|
3,009,233
|
|
|
-
|
|
|
-
|
|
|
3,035,504
|
|
|
3,035,504
|
|
Interest rate swap - loans
|
|
33
|
|
|
-
|
|
|
33
|
|
|
-
|
|
|
33
|
|
Accrued interest receivable
|
|
15,000
|
|
|
-
|
|
|
15,000
|
|
|
-
|
|
|
15,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
3,236,843
|
|
$
|
-
|
|
$
|
3,238,777
|
|
$
|
-
|
|
$
|
3,238,777
|
|
Borrowings
|
|
463,314
|
|
|
-
|
|
|
443,237
|
|
|
-
|
|
|
443,237
|
|
Accrued interest payable
|
|
902
|
|
|
-
|
|
|
902
|
|
|
-
|
|
|
902
|
|
Cash flow hedge - prime loan swap
|
|
516
|
|
|
-
|
|
|
516
|
|
|
-
|
|
|
516
|
|
Cash flow hedge - trust preferred
|
|
3,046
|
|
|
-
|
|
|
3,046
|
|
|
-
|
|
|
3,046
|
|
Interest rate swap - loans
|
|
33
|
|
|
-
|
|
|
33
|
|
|
-
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|