Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.3.0.814
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 30, 2015
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 September 30, 2015 and December 31, 2014 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at September 30, 2015 using

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

 -

 

$
8,411 

 

$

 -

 

$
8,411 

Obligations of states and political subdivisions

 

 -

 

 
249,893 

 

 

 -

 

 
249,893 

Corporate and other bonds

 

 -

 

 
72,462 

 

 

 -

 

 
72,462 

Mortgage-backed securities

 

 -

 

 
547,717 

 

 

 -

 

 
547,717 

Other securities

 

 -

 

 
10,209 

 

 

 -

 

 
10,209 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

 

 -

 

 
5,470 

 

 

 -

 

 
5,470 

Cash flow hedges

 

 -

 

 
1,553 

 

 

 -

 

 
1,553 

Interest rate lock commitments

 

 -

 

 

 -

 

 
1,321 

 

 
1,321 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

$

 -

 

$
5,470 

 

$

 -

 

$
5,470 

Cash flow hedges

 

 -

 

 
11,911 

 

 

 -

 

 
11,911 

Best effort forward delivery commitments

 

 -

 

 

 -

 

 
544 

 

 
544 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2014 using

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2015 and December 31, 2014 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at September 30, 2015 using

 

 

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices in Active Markets for Identical Assets

 

Significant Other Observable Inputs

 

Significant Unobservable Inputs

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Balance

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

$

 -

 

$
65,713 

 

$

 -

 

$
65,713 

Impaired loans

 

 -

 

 

 -

 

 
10,416 

 

 
10,416 

Other real estate owned

 

 -

 

 

 -

 

 
22,094 

 

 
22,094 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2014 using

 

 

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices in Active Markets for Identical Assets

 

Significant Other Observable Inputs

 

Significant Unobservable Inputs

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Balance

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

$

 -

 

$
42,519 

 

$

 -

 

$
42,519 

Impaired loans

 

 -

 

 

 -

 

 
15,797 

 

 
15,797 

Other real estate owned

 

 -

 

 

 -

 

 
28,118 

 

 
28,118 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Quantitative Information About Level 3 Fair Value Measurements

The following table displays quantitative information about Level 3 Fair Value Measurements at September 30, 2015 (dollars in thousands):

 

 

 

 

 

 

 

 

 

Fair Value Measurements at September 30, 2015

 

Fair Value

Valuation Technique(s)

Unobservable Inputs

Weighted Average

ASSETS

 

 

 

 

 

Impaired Loans

$
10,416 

Market comparables

Discount applied to market comparables (1)
7% 

Other real estate owned

 
22,094 

Market comparables

Discount applied to market comparables (1)
21% 

    Total

$
32,510 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

 

 

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

 

 

 

 

 

Impaired Loans

$
15,797 

Market comparables

Discount applied to market comparables (1)
13% 

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.

 

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 September 30, 2015 and December 31, 2014 are as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at September 30, 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

$
179,194 

 

$
179,194 

 

$

 -

 

$

 -

 

$
179,194 

Securities available for sale

 
888,692 

 

 

 -

 

 
888,692 

 

 

 -

 

 
888,692 

Held to maturity securities

 
199,363 

 

 

 -

 

 
200,319 

 

 

 -

 

 
200,319 

Restricted stock

 
52,721 

 

 

 -

 

 
52,721 

 

 

 -

 

 
52,721 

Loans held for sale

 
65,713 

 

 

 -

 

 
65,713 

 

 

 -

 

 
65,713 

Net loans

 
5,510,352 

 

 

 -

 

 

 -

 

 
5,536,118 

 

 
5,536,118 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 
1,321 

 

 

 -

 

 

 -

 

 
1,321 

 

 
1,321 

Interest rate swap

 
5,470 

 

 

 -

 

 
5,470 

 

 

 -

 

 
5,470 

Cash flow hedges

 
1,553 

 

 

 -

 

 
1,553 

 

 

 -

 

 
1,553 

Accrued interest receivable

 
21,488 

 

 

 -

 

 
21,488 

 

 

 -

 

 
21,488 

Bank owned life insurance

 
142,433 

 

 

 -

 

 
142,433 

 

 

 -

 

 
142,433 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$
5,818,853 

 

$

 -

 

$
5,817,840 

 

$

 -

 

$
5,817,840 

Borrowings

 
722,149 

 

 

 -

 

 
699,804 

 

 

 -

 

 
699,804 

Accrued interest payable

 
1,610 

 

 

 -

 

 
1,610 

 

 

 -

 

 
1,610 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

 
5,470 

 

 

 -

 

 
5,470 

 

 

 -

 

 
5,470 

Cash flow hedges

 
11,911 

 

 

 -

 

 
11,911 

 

 

 -

 

 
11,911 

Best effort forward delivery commitments

 
544 

 

 

 -

 

 

 -

 

 
544 

 

 
544 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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