|
FAIR VALUE MEASUREMENTS (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
| 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 December 31, 2013 and 2012 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2013 using
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap - loans
|
$
|
-
|
|
$
|
33
|
|
$
|
-
|
|
$
|
33
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities
|
|
-
|
|
|
2,153
|
|
|
-
|
|
|
2,153
|
|
Obligations of states and political subdivisions
|
|
-
|
|
|
254,830
|
|
|
-
|
|
|
254,830
|
|
Corporate and other bonds
|
|
-
|
|
|
9,434
|
|
|
-
|
|
|
9,434
|
|
Mortgage-backed securities
|
|
-
|
|
|
407,362
|
|
|
-
|
|
|
407,362
|
|
Other securities
|
|
-
|
|
|
3,569
|
|
|
-
|
|
|
3,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap - loans
|
$
|
-
|
|
$
|
33
|
|
$
|
-
|
|
$
|
33
|
|
Cash flow hedge - prime loan swap
|
|
-
|
|
|
516
|
|
|
-
|
|
|
516
|
|
Cash flow hedge - trust preferred
|
|
-
|
|
|
3,046
|
|
|
-
|
|
|
3,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2012 using
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in Active Markets for Identical Assets
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap - loans
|
$
|
-
|
|
$
|
18
|
|
$
|
-
|
|
$
|
18
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities
|
|
-
|
|
|
2,849
|
|
|
-
|
|
|
2,849
|
|
Obligations of states and political subdivisions
|
|
-
|
|
|
229,778
|
|
|
-
|
|
|
229,778
|
|
Corporate and other bonds
|
|
-
|
|
|
7,212
|
|
|
-
|
|
|
7,212
|
|
Mortgage-backed securities
|
|
-
|
|
|
342,174
|
|
|
-
|
|
|
342,174
|
|
Other securities
|
|
-
|
|
|
3,369
|
|
|
-
|
|
|
3,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap - loans
|
$
|
-
|
|
$
|
18
|
|
$
|
-
|
|
$
|
18
|
|
Cash flow hedge - trust preferred
|
|
-
|
|
|
4,489
|
|
|
-
|
|
|
4,489
|
|
| 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 December 31, 2013 and 2012 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2013 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
|
$
|
-
|
|
$
|
53,185
|
|
$
|
-
|
|
$
|
53,185
|
|
Impaired loans
|
|
-
|
|
|
-
|
|
|
7,985
|
|
|
7,985
|
|
Other real estate owned
|
|
-
|
|
|
-
|
|
|
34,116
|
|
|
34,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2012 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
|
$
|
-
|
|
$
|
167,698
|
|
$
|
-
|
|
$
|
167,698
|
|
Impaired loans
|
|
-
|
|
|
-
|
|
|
30,104
|
|
|
30,104
|
|
Other real estate owned
|
|
-
|
|
|
-
|
|
|
32,834
|
|
|
32,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Summary of Quantitative Information About Level 3 Fair Value Measurements |
The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2013 (dollars in thousands):
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2012 (dollars in thousands):
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2012
|
|
|
Fair Value
|
Valuation Technique(s)
|
Unobservable Inputs
|
Weighted Average
|
|
ASSETS
|
|
|
|
|
|
|
Commercial Construction
|
$
|
3,190
|
Market comparables
|
Discount applied to market comparables (1)
|
6%
|
|
Commercial Real Estate - Owner Occupied
|
|
2,001
|
Market comparables
|
Discount applied to market comparables (1)
|
13%
|
|
Commercial Real Estate - Non-Owner Occupied
|
|
13,100
|
Market comparables
|
Discount applied to market comparables (1)
|
9%
|
|
Raw Land and Lots
|
|
7,300
|
Market comparables
|
Discount applied to market comparables (1)
|
6%
|
|
Single Family Investment Real Estate
|
|
1,241
|
Market comparables
|
Discount applied to market comparables (1)
|
6%
|
|
Commercial and Industrial
|
|
1,810
|
Market comparables
|
Discount applied to market comparables (1)
|
23%
|
|
Other (2)
|
|
1,462
|
Market comparables
|
Discount applied to market comparables (1)
|
27%
|
|
Total Impaired Loans
|
|
30,104
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned
|
|
32,834
|
Market comparables
|
Discount applied to market comparables (1)
|
33%
|
|
Total
|
$
|
62,938
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
| 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 December 31, 2013 and 2012 are as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2012 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
|
$
|
82,902
|
|
$
|
82,902
|
|
$
|
-
|
|
$
|
-
|
|
$
|
82,902
|
|
Securities available for sale
|
|
585,382
|
|
|
-
|
|
|
585,382
|
|
|
-
|
|
|
585,382
|
|
Restricted stock
|
|
20,687
|
|
|
-
|
|
|
20,687
|
|
|
-
|
|
|
20,687
|
|
Loans held for sale
|
|
167,698
|
|
|
-
|
|
|
167,698
|
|
|
-
|
|
|
167,698
|
|
Net loans
|
|
2,931,931
|
|
|
-
|
|
|
-
|
|
|
2,956,339
|
|
|
2,956,339
|
|
Interest rate swap - loans
|
|
18
|
|
|
-
|
|
|
18
|
|
|
-
|
|
|
18
|
|
Accrued interest receivable
|
|
19,663
|
|
|
-
|
|
|
19,663
|
|
|
-
|
|
|
19,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
3,297,767
|
|
$
|
-
|
|
$
|
3,309,149
|
|
$
|
-
|
|
$
|
3,309,149
|
|
Borrowings
|
|
329,395
|
|
|
-
|
|
|
309,019
|
|
|
-
|
|
|
309,019
|
|
Accrued interest payable
|
|
1,414
|
|
|
-
|
|
|
1,414
|
|
|
-
|
|
|
1,414
|
|
Cash flow hedge – trust preferred
|
|
4,489
|
|
|
-
|
|
|
4,489
|
|
|
-
|
|
|
4,489
|
|
Interest rate swap - loans
|
|
18
|
|
|
-
|
|
|
18
|
|
|
-
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|