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FAIR VALUE MEASUREMENTS (Tables)
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9 Months Ended |
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Sep. 30, 2014
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| FAIR VALUE MEASUREMENTS [Abstract] |
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| 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, 2014 and December 31, 2013 (dollars in thousands):
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Fair Value Measurements at September 30, 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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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
|
$
|
-
|
|
$
|
828
|
|
$
|
-
|
|
$
|
828
|
|
Cash flow hedges
|
|
-
|
|
|
33
|
|
|
-
|
|
|
33
|
|
Interest rate lock commitments
|
|
-
|
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|
-
|
|
|
612
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|
612
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Securities available for sale:
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U.S. government and agency securities
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-
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1,931
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-
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1,931
|
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Obligations of states and political subdivisions
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-
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435,657
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-
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435,657
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Corporate and other bonds
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-
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78,899
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-
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78,899
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Mortgage-backed securities
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-
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569,328
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|
-
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569,328
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Other securities
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-
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9,821
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-
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9,821
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LIABILITIES
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Interest rate swap
|
$
|
-
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|
$
|
828
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|
$
|
-
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|
$
|
828
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Cash flow hedges
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|
-
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|
5,049
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-
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5,049
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Fair Value Measurements at December 31, 2013 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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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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Interest rate swap
|
$
|
-
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$
|
33
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$
|
-
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$
|
33
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Securities available for sale:
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U.S. government and agency securities
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|
-
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2,153
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-
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2,153
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Obligations of states and political subdivisions
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-
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254,830
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-
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254,830
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Corporate and other bonds
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-
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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
|
$
|
-
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|
$
|
33
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|
$
|
-
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$
|
33
|
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Cash flow hedges
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-
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3,562
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-
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3,562
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| 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, 2014 and December 31, 2013 (dollars in thousands):
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Fair Value Measurements at September 30, 2014 using
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|
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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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Loans held for sale
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$
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-
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$
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30,857
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$
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-
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$
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30,857
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Impaired loans
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-
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-
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26,910
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26,910
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Other real estate owned
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-
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-
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37,754
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37,754
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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
|
|
Significant Other Observable Inputs
|
|
Significant Unobservable Inputs
|
|
|
|
|
|
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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Loans held for sale
|
$
|
-
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$
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53,185
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$
|
-
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$
|
53,185
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Impaired loans
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-
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-
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7,985
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7,985
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Other real estate owned
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-
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-
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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 at September 30, 2014 (dollars in thousands):
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Fair Value Measurements at September 30, 2014
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Fair Value
|
Valuation Technique(s)
|
Unobservable Inputs
|
Weighted Average
|
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ASSETS
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Commercial Construction
|
$
|
2
|
Market comparables
|
Discount applied to market comparables (1)
|
0%
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Commercial Real Estate - Owner Occupied
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|
5,628
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Market comparables
|
Discount applied to market comparables (1)
|
25%
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Commercial Real Estate - Non-Owner Occupied
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|
9,731
|
Market comparables
|
Discount applied to market comparables (1)
|
16%
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Raw Land and Lots
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|
2,483
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Market comparables
|
Discount applied to market comparables (1)
|
1%
|
|
Single Family Investment Real Estate
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|
5,189
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Market comparables
|
Discount applied to market comparables (1)
|
15%
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|
Commercial and Industrial
|
|
1,102
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Market comparables
|
Discount applied to market comparables (1)
|
27%
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Other (2)
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|
2,775
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Market comparables
|
Discount applied to market comparables (1)
|
6%
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Total Impaired Loans
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26,910
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Other real estate owned
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|
37,754
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Market comparables
|
Discount applied to market comparables (1)
|
32%
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Total
|
$
|
64,664
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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, 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, 2013 (dollars in thousands):
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Fair Value Measurements at December 31, 2013
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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
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|
908
|
Market comparables
|
Discount applied to market comparables (1)
|
10%
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Single Family Investment Real Estate
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|
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%
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|
Other (2)
|
|
1,764
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Market comparables
|
Discount applied to market comparables (1)
|
0%
|
|
Total Impaired Loans
|
|
7,985
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|
|
|
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|
|
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Other real estate owned
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|
34,116
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Market comparables
|
Discount applied to market comparables (1)
|
33%
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Total
|
$
|
42,101
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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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| 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, 2014 and December 31, 2013 are as follows (dollars in thousands):
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|
Fair Value Measurements at September 30, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Cash and cash equivalents
|
$
|
148,692
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|
$
|
148,692
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|
$
|
-
|
|
$
|
-
|
|
$
|
148,692
|
|
Securities available for sale
|
|
1,095,636
|
|
|
-
|
|
|
1,095,636
|
|
|
-
|
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|
1,095,636
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|
Restricted stock
|
|
48,554
|
|
|
-
|
|
|
48,554
|
|
|
-
|
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|
48,554
|
|
Interest rate lock commitments
|
|
612
|
|
|
-
|
|
|
-
|
|
|
612
|
|
|
612
|
|
Loans held for sale
|
|
30,857
|
|
|
-
|
|
|
30,857
|
|
|
-
|
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|
30,857
|
|
Net loans
|
|
5,138,894
|
|
|
-
|
|
|
-
|
|
|
5,167,987
|
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|
5,167,987
|
|
Interest rate swap
|
|
828
|
|
|
-
|
|
|
828
|
|
|
-
|
|
|
828
|
|
Cash flow hedges
|
|
33
|
|
|
-
|
|
|
33
|
|
|
-
|
|
|
33
|
|
Accrued interest receivable
|
|
21,260
|
|
|
-
|
|
|
21,260
|
|
|
-
|
|
|
21,260
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LIABILITIES
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Deposits
|
$
|
5,634,050
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|
$
|
-
|
|
$
|
5,634,121
|
|
$
|
-
|
|
$
|
5,634,121
|
|
Borrowings
|
|
527,679
|
|
|
-
|
|
|
508,702
|
|
|
-
|
|
|
508,702
|
|
Accrued interest payable
|
|
1,963
|
|
|
-
|
|
|
1,963
|
|
|
-
|
|
|
1,963
|
|
Interest rate swap
|
|
828
|
|
|
-
|
|
|
828
|
|
|
-
|
|
|
828
|
|
Cash flow hedges
|
|
5,049
|
|
|
-
|
|
|
5,049
|
|
|
-
|
|
|
5,049
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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
|
|
33
|
|
|
-
|
|
|
33
|
|
|
-
|
|
|
33
|
|
Accrued interest receivable
|
|
15,000
|
|
|
-
|
|
|
15,000
|
|
|
-
|
|
|
15,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
3,236,842
|
|
$
|
-
|
|
$
|
3,238,777
|
|
$
|
-
|
|
$
|
3,238,777
|
|
Borrowings
|
|
463,314
|
|
|
-
|
|
|
443,237
|
|
|
-
|
|
|
443,237
|
|
Accrued interest payable
|
|
902
|
|
|
-
|
|
|
902
|
|
|
-
|
|
|
902
|
|
Interest rate swap
|
|
33
|
|
|
-
|
|
|
33
|
|
|
-
|
|
|
33
|
|
Cash flow hedges
|
|
3,562
|
|
|
-
|
|
|
3,562
|
|
|
-
|
|
|
3,562
|
|
|
|
|
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|
|
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