| 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, 2015 and December 31, 2014 (dollars in thousands):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at March 31, 2015 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
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities
|
$
|
-
|
|
$
|
8,595
|
|
$
|
-
|
|
$
|
8,595
|
|
Obligations of states and political subdivisions
|
|
-
|
|
|
452,438
|
|
|
-
|
|
|
452,438
|
|
Corporate bonds
|
|
-
|
|
|
78,141
|
|
|
-
|
|
|
78,141
|
|
Mortgage-backed securities
|
|
-
|
|
|
540,463
|
|
|
-
|
|
|
540,463
|
|
Other securities
|
|
-
|
|
|
10,027
|
|
|
-
|
|
|
10,027
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
-
|
|
|
4,684
|
|
|
-
|
|
|
4,684
|
|
Cash flow hedges
|
|
-
|
|
|
1,185
|
|
|
-
|
|
|
1,185
|
|
Interest rate lock commitments
|
|
-
|
|
|
-
|
|
|
1,271
|
|
|
1,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
$
|
-
|
|
$
|
4,684
|
|
$
|
-
|
|
$
|
4,684
|
|
Cash flow hedges
|
|
-
|
|
|
10,854
|
|
|
-
|
|
|
10,854
|
|
Best effort forward delivery commitments
|
|
-
|
|
|
-
|
|
|
367
|
|
|
367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 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
|
|
Balance
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities
|
$
|
-
|
|
$
|
8,454
|
|
$
|
-
|
|
$
|
8,454
|
|
Obligations of states and political subdivisions
|
|
-
|
|
|
445,647
|
|
|
-
|
|
|
445,647
|
|
Corporate bonds
|
|
-
|
|
|
78,680
|
|
|
-
|
|
|
78,680
|
|
Mortgage-backed securities
|
|
-
|
|
|
559,329
|
|
|
-
|
|
|
559,329
|
|
Other securities
|
|
-
|
|
|
10,004
|
|
|
-
|
|
|
10,004
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
-
|
|
|
2,681
|
|
|
-
|
|
|
2,681
|
|
Cash flow hedges
|
|
-
|
|
|
580
|
|
|
-
|
|
|
580
|
|
Interest rate lock commitments
|
|
-
|
|
|
-
|
|
|
513
|
|
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
$
|
-
|
|
$
|
2,681
|
|
$
|
-
|
|
$
|
2,681
|
|
Cash flow hedges
|
|
-
|
|
|
8,433
|
|
|
-
|
|
|
8,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Summary of Quantitative Information About Level 3 Fair Value Measurements |
The following table displays quantitative information about Level 3 Fair Value Measurements at March 31, 2015 (dollars in thousands):
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|
|
|
|
|
|
|
Fair Value Measurements at March 31, 2015
|
|
|
Fair Value
|
Valuation Technique(s)
|
Unobservable Inputs
|
Weighted Average
|
|
ASSETS
|
|
|
|
|
|
|
Commercial Real Estate - Owner Occupied
|
$
|
4,524
|
Market comparables
|
Discount applied to market comparables (1)
|
37%
|
|
Commercial Real Estate - Non-Owner Occupied
|
|
3,860
|
Market comparables
|
Discount applied to market comparables (1)
|
0%
|
|
Single Family Investment Real Estate
|
|
1,220
|
Market comparables
|
Discount applied to market comparables (1)
|
5%
|
|
Commercial and Industrial
|
|
2,011
|
Market comparables
|
Discount applied to market comparables (1)
|
11%
|
|
Other (2)
|
|
1,006
|
Market comparables
|
Discount applied to market comparables (1)
|
5%
|
|
Total Impaired Loans
|
|
12,621
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
25,434
|
Market comparables
|
Discount applied to market comparables (1)
|
31%
|
|
Total
|
$
|
38,055
|
|
|
|
|
|
|
|
|
|
|
|
(1) A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.
|
|
(2) The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.
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|
|
|
|
|
|
|
The following table displays quantitative information about Level 3 Fair Value Measurements at December 31, 2014 (dollars in thousands):
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2014
|
|
|
Fair Value
|
Valuation Technique(s)
|
Unobservable Inputs
|
Weighted Average
|
|
ASSETS
|
|
|
|
|
|
|
Commercial Real Estate - Owner Occupied
|
$
|
3,304
|
Market comparables
|
Discount applied to market comparables (1)
|
34%
|
|
Commercial Real Estate - Non-Owner Occupied
|
|
7,828
|
Market comparables
|
Discount applied to market comparables (1)
|
1%
|
|
Raw Land and Lots
|
|
431
|
Market comparables
|
Discount applied to market comparables (1)
|
16%
|
|
Single Family Investment Real Estate
|
|
1,366
|
Market comparables
|
Discount applied to market comparables (1)
|
14%
|
|
Commercial and Industrial
|
|
339
|
Market comparables
|
Discount applied to market comparables (1)
|
45%
|
|
Other (2)
|
|
2,529
|
Market comparables
|
Discount applied to market comparables (1)
|
6%
|
|
Total Impaired Loans
|
|
15,797
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
28,118
|
Market comparables
|
Discount applied to market comparables (1)
|
32%
|
|
Total
|
$
|
43,915
|
|
|
|
|
|
|
|
|
|
|
|
(1) A discount percentage (in addition to expected selling costs) is applied based on the age of independent appraisals, current market conditions, and experience within the local market.
|
|
(2) The “Other” category of the impaired loans section consists of Other Commercial, Mortgage, Consumer Construction, Indirect Marine, HELOCs, and Other Consumer.
|
|
| 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 at March 31, 2015 and December 31, 2014 are as follows (dollars in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at March 31, 2015 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
|
$
|
137,362
|
|
$
|
137,362
|
|
$
|
-
|
|
$
|
-
|
|
$
|
137,362
|
|
Securities available for sale
|
|
1,089,664
|
|
|
-
|
|
|
1,089,664
|
|
|
-
|
|
|
1,089,664
|
|
Restricted stock
|
|
53,146
|
|
|
-
|
|
|
53,146
|
|
|
-
|
|
|
53,146
|
|
Loans held for sale
|
|
46,048
|
|
|
-
|
|
|
46,048
|
|
|
-
|
|
|
46,048
|
|
Net loans
|
|
5,356,778
|
|
|
-
|
|
|
-
|
|
|
5,381,792
|
|
|
5,381,792
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate lock commitments
|
|
1,271
|
|
|
-
|
|
|
-
|
|
|
1,271
|
|
|
1,271
|
|
Interest rate swap
|
|
4,684
|
|
|
-
|
|
|
4,684
|
|
|
-
|
|
|
4,684
|
|
Cash flow hedges
|
|
1,185
|
|
|
-
|
|
|
1,185
|
|
|
-
|
|
|
1,185
|
|
Accrued interest receivable
|
|
22,313
|
|
|
-
|
|
|
22,313
|
|
|
-
|
|
|
22,313
|
|
Bank owned life insurance
|
|
140,143
|
|
|
-
|
|
|
140,143
|
|
|
-
|
|
|
140,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
5,670,228
|
|
$
|
-
|
|
$
|
5,669,754
|
|
$
|
-
|
|
$
|
5,669,754
|
|
Borrowings
|
|
674,348
|
|
|
-
|
|
|
653,782
|
|
|
-
|
|
|
653,782
|
|
Accrued interest payable
|
|
1,818
|
|
|
-
|
|
|
1,818
|
|
|
-
|
|
|
1,818
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Best effort forward delivery commitments
|
|
367
|
|
|
-
|
|
|
-
|
|
|
367
|
|
|
367
|
|
Interest rate swap
|
|
4,684
|
|
|
-
|
|
|
4,684
|
|
|
-
|
|
|
4,684
|
|
Cash flow hedges
|
|
10,854
|
|
|
-
|
|
|
10,854
|
|
|
-
|
|
|
10,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 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
|
$
|
133,260
|
|
$
|
133,260
|
|
$
|
-
|
|
$
|
-
|
|
$
|
133,260
|
|
Securities available for sale
|
|
1,102,114
|
|
|
-
|
|
|
1,102,114
|
|
|
-
|
|
|
1,102,114
|
|
Restricted stock
|
|
54,854
|
|
|
-
|
|
|
54,854
|
|
|
-
|
|
|
54,854
|
|
Loans held for sale
|
|
42,519
|
|
|
-
|
|
|
42,519
|
|
|
-
|
|
|
42,519
|
|
Net loans
|
|
5,313,612
|
|
|
-
|
|
|
-
|
|
|
5,340,759
|
|
|
5,340,759
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate lock commitments
|
|
513
|
|
|
-
|
|
|
-
|
|
|
513
|
|
|
513
|
|
Interest rate swap
|
|
2,681
|
|
|
-
|
|
|
2,681
|
|
|
-
|
|
|
2,681
|
|
Cash flow hedges
|
|
580
|
|
|
-
|
|
|
580
|
|
|
-
|
|
|
580
|
|
Accrued interest receivable
|
|
21,775
|
|
|
-
|
|
|
21,775
|
|
|
-
|
|
|
21,775
|
|
Bank owned life insurance
|
|
139,005
|
|
|
-
|
|
|
139,005
|
|
|
-
|
|
|
139,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
5,638,770
|
|
$
|
-
|
|
$
|
5,637,929
|
|
$
|
-
|
|
$
|
5,637,929
|
|
Borrowings
|
|
686,935
|
|
|
-
|
|
|
666,224
|
|
|
-
|
|
|
666,224
|
|
Accrued interest payable
|
|
1,899
|
|
|
-
|
|
|
1,899
|
|
|
-
|
|
|
1,899
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
2,681
|
|
|
-
|
|
|
2,681
|
|
|
-
|
|
|
2,681
|
|
Cash flow hedges
|
|
8,433
|
|
|
-
|
|
|
8,433
|
|
|
-
|
|
|
8,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|