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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2017
Fair Value Measurements  
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value measurements using:

 

 

 

 

 

 

Quoted prices in

 

Significant

 

Significant

 

 

 

 

 

 

active markets for

 

observable

 

unobservable

 

 

 

Balance at

 

identical assets

 

inputs

 

inputs

 

(in thousands)

 

September 30, 2017

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust preferred securities

 

$

38,691

 

$

4,433

 

$

25,091

 

$

9,167

 

Corporate debt securities

 

 

135,590

 

 

 -

 

 

135,590

 

 

 -

 

Municipal securities

 

 

3,310

 

 

 -

 

 

3,310

 

 

 -

 

Total available for sale securities

 

$

177,591

 

$

4,433

 

$

163,991

 

$

9,167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value hedges

 

$

400

 

$

 -

 

$

400

 

$

 -

 

Non-designated hedges

 

 

2,255

 

 

 -

 

 

2,255

 

 

 -

 

Foreign exchange forward contracts

 

 

23

 

 

 -

 

 

23

 

 

 -

 

Total derivative assets

 

$

2,678

 

$

 -

 

$

2,678

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

$

6,584

 

$

 -

 

$

6,584

 

$

 -

 

Fair value hedges

 

 

920

 

 

 -

 

 

920

 

 

 -

 

Non-designated hedges

 

 

2,349

 

 

 -

 

 

2,349

 

 

 -

 

Foreign exchange forward contracts

 

 

 4

 

 

 -

 

 

 4

 

 

 -

 

Total derivative liabilities

 

$

9,857

 

$

 -

 

$

9,857

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value measurements using:

 

 

 

 

 

 

Quoted prices in

 

Significant

 

Significant

 

 

 

 

 

 

active markets for

 

observable

 

unobservable

 

 

 

Balance at

 

identical assets

 

inputs

 

inputs

 

(in thousands)

 

December 31, 2016

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust preferred securities

 

$

37,624

 

$

4,283

 

$

23,893

 

$

9,448

 

Corporate debt securities

 

 

92,077

 

 

 -

 

 

92,077

 

 

 -

 

Municipal securities

 

 

3,280

 

 

 -

 

 

3,280

 

 

 -

 

Total available for sale securities

 

$

132,981

 

$

4,283

 

$

119,250

 

$

9,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value hedges

 

$

476

 

$

 -

 

$

476

 

$

 -

 

Non-designated hedges

 

 

2,755

 

 

 -

 

 

2,755

 

 

 -

 

Foreign exchange forward contracts

 

 

52

 

 

 -

 

 

52

 

 

 -

 

Total derivative assets

 

$

3,283

 

$

 -

 

$

3,283

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow hedges

 

$

7,639

 

$

 -

 

$

7,639

 

$

 -

 

Fair value hedge

 

 

845

 

 

 -

 

 

845

 

 

 -

 

Non-designated hedges

 

 

2,736

 

 

 -

 

 

2,736

 

 

 -

 

Foreign exchange forward contracts

 

 

 5

 

 

 -

 

 

 5

 

 

 -

 

Total derivative liabilities

 

$

11,225

 

$

 -

 

$

11,225

 

$

 -

 

 

Reconciliation Of Financial Assets Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30, 

 

September 30, 

 

(in thousands)

 

2017

 

2016

 

2017

    

2016

 

Beginning balance

 

$

10,198

 

$

8,955

 

$

9,448

 

$

5,810

 

Transfers and purchases

 

 

 -

 

 

 -

 

 

 -

 

 

3,276

 

Net accretion

 

 

28

 

 

29

 

 

87

 

 

60

 

Sales / calls / maturities

 

 

(1,000)

 

 

 -

 

 

(1,000)

 

 

 -

 

Unrealized gain (loss) included in comprehensive income

 

 

(59)

 

 

291

 

 

632

 

 

129

 

Ending balance

 

$

9,167

 

$

9,275

 

$

9,167

 

$

9,275

 

 

Schedule Of Assets Measured At Fair Value On A Nonrecurring Basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value measurements using:

 

 

 

 

 

 

Quoted prices in

 

Significant

 

Significant 

 

 

 

 

 

 

active markets for

 

observable

 

unobservable

 

 

 

 

 

 

identical assets

 

inputs

 

inputs

 

(in thousands)

 

 

     Total     

  

(Level 1)

  

(Level 2)

  

(Level 3)

 

At September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

2,969

 

$

 -

 

$

 -

 

$

2,969

 

OREO

 

$

5,351

 

$

 -

 

$

 -

 

$

5,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

1,425

 

$

 -

 

$

 -

 

$

1,425

 

OREO

 

$

5,351

 

$

 -

 

$

 -

 

$

5,351

 

 

Schedule of Gains And Losses Recorded In Relation To Assets And Liabilities Measured On Nonrecurring Basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain for the three months ended

  

Gain for the nine months ended

 

 

 

September 30, 

 

September 30, 

 

(in thousands)

 

2017

    

2016

    

2017

    

2016

 

Impaired loans

 

$

38

 

$

975

 

$

1,009

 

$

3,149

 

 

Reconciliation Of Other Real Estate Owned Fair Value Measurement

 

 

 

 

 

 

 

 

 

 

At

 

At

 

(in thousands)

 

September 30, 2017

    

December 31, 2016

 

OREO recorded at fair value

 

$

5,351

 

$

5,351

 

Estimated selling costs

 

 

(272)

 

 

(272)

 

OREO 

 

$

5,079

 

$

5,079

 

 

Fair Value Measurements, Recurring And Nonrecurring, Valuation Techniques

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2017

 

 

 

Fair value

  

 

  

 

  

Weighted

    

 

 

Category

 

(in thousands)

  

Valuation technique

  

Unobservable input

  

average

  

    Range    

 

Trust preferred securities

 

$

9,167

 

Market approach

 

Discount to carrying value using broker quotes or observable prices on similar securities

 

7

%  

5% to 13%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

2,509

 

Sales comparison (1)

 

Management discount for asset type

 

53

%

0% -  90%

 

Real estate - mortgage

 

 

303

 

Sales comparison (2)

 

Sales comparison adjustments

 

(2)

%

(1)% - (4)%

 

Consumer

 

 

157

 

Sales comparison (2)

 

Sales comparison adjustments

 

(36)

%

(13)% - (59)%

 

Total impaired loans

 

$

2,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OREO:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

190

 

Property appraisals (2) 

 

Management discount for property type

 

0

%

NA

 

Construction & land

 

 

5,161

 

Property appraisals (2) 

 

Management discount for property type

 

17

%

NA

 

Total OREO

 

$

5,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2016

 

 

 

Fair value

  

 

  

 

  

Weighted

    

 

 

Category

 

(in thousands)

  

Valuation technique

  

Unobservable input

  

average

  

    Range    

 

Trust preferred securities

 

$

9,448

 

Market approach

 

Discount to carrying value using broker quotes or observable prices on similar securities

 

13

%  

1% to 28%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

1,057

 

Sales comparison (1)

 

Management discount for asset type

 

59

%

0% to 76%

 

Real estate - mortgage

 

 

269

 

Sales comparison (2)

 

Sales comparison adjustments

 

18

%

NA

 

Consumer

 

 

99

 

Sales comparison (2)

 

Sales comparison adjustments

 

(1)

%

(11)% to 10%

 

Total impaired loans

 

$

1,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OREO:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

190

 

Property appraisals (2)

 

Management discount for property type

 

0

%

0%

 

Construction & land

 

 

5,161

 

Property appraisals (2)

 

Management discount for property type

 

17

%

NA

 

Total OREO

 

$

5,351

 

 

 

 

 

 

 

 

 

(1)

Discount represents management’s discounts applied to market valuation of various business asset types including accounts receivable and other commercial assets. 

(2)

The fair value of OREO and collateral-dependent impaired loans is based on third-party property appraisals. The majority of the appraisals utilize at least two valuation approaches or a combination of approaches including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine fair value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation approach. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in these tables represent increases and negative adjustments represent decreases in fair value.
Schedule Of Estimated Fair Value Of Financial Instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017

 

December 31, 2016

 

 

 

      Carrying      

 

     Estimated     

 

      Carrying      

 

     Estimated     

 

(in thousands)

 

value

  

fair value

  

value

  

fair value

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

79,305

 

$

79,305

 

$

96,050

 

$

96,050

 

Investment securities available for sale 

 

 

177,591

 

 

177,591

 

 

132,981

 

 

132,981

 

Investment securities held to maturity 

 

 

360,935

 

 

360,380

 

 

366,041

 

 

363,178

 

Other investments

 

 

2,174

 

 

2,174

 

 

2,173

 

 

2,173

 

Loans — net

 

 

3,084,848

 

 

3,080,579

 

 

2,900,812

 

 

2,868,091

 

Accrued interest receivable

 

 

13,698

 

 

13,698

 

 

12,223

 

 

12,223

 

Derivatives

 

 

2,678

 

 

2,678

 

 

3,283

 

 

3,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

3,177,532

 

$

3,176,777

 

$

3,029,783

 

$

3,029,226

 

Securities sold under agreements  to repurchase  

 

 

60,335

 

 

56,667

 

 

27,639

 

 

26,101

 

Other short-term borrowings

 

 

101,476

 

 

101,476

 

 

106,230

 

 

106,230

 

Accrued interest payable

 

 

1,876

 

 

1,876

 

 

1,038

 

 

1,038

 

Subordinated notes payable

 

 

59,173

 

 

58,983

 

 

59,111

 

 

58,681

 

Junior subordinated debentures

 

 

72,166

 

 

72,166

 

 

72,166

 

 

72,166

 

Derivatives

 

 

9,857

 

 

9,857

 

 

11,225

 

 

11,225