XML 29 R37.htm IDEA: XBRL DOCUMENT v2.4.0.8
FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Jun. 30, 2014
FAIR VALUE MEASUREMENTS  
Summary of financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value

 

 

 

June 30, 2014

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

(In thousands)

 

Inputs

 

Inputs

 

Inputs

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

Trading security

 

$

 

$

 

$

14,971

 

$

14,971

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

Municipal bonds and obligations

 

 

137,414

 

 

137,414

 

Governmentguaranteed residential mortgage-backed securities

 

 

79,723

 

 

79,723

 

Government-sponsored residential mortgage-backed securities

 

 

797,091

 

 

797,091

 

Trust preferred securities

 

 

14,236

 

1,421

 

15,657

 

Other bonds and obligations

 

 

3,165

 

 

3,165

 

Marketable equity securities

 

46,465

 

357

 

796

 

47,618

 

Loans held for sale

 

 

20,185

 

 

20,185

 

Derivative assets

 

 

9,538

 

660

 

10,198

 

Derivative liabilities

 

398

 

12,917

 

163

 

13,478

 

 

 

 

December 31, 2013

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

(In thousands)

 

Inputs

 

Inputs

 

Inputs

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

Trading security

 

$

 

$

 

$

14,840

 

$

14,840

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

Municipal bonds and obligations

 

 

77,671

 

 

77,671

 

Government guaranteed residential mortgage-backed securities

 

 

78,771

 

 

78,771

 

Government-sponsored residential mortgage-backed securities

 

 

522,658

 

 

522,658

 

Corporate bonds

 

 

39,280

 

 

39,280

 

Trust preferred securities

 

 

15,372

 

1,239

 

16,611

 

Other bonds and obligations

 

 

3,084

 

 

3,084

 

Marketable equity securities

 

20,891

 

357

 

725

 

21,973

 

Loans Held for Sale

 

 

15,840

 

 

15,840

 

Derivative assets

 

242

 

7,799

 

277

 

8,318

 

Derivative liabilities

 

 

11,964

 

 

11,964

 

Schedule of loans held for sale

 

 

 

 

 

 

 

Aggregate Fair Value

 

June 30, 2014

 

Aggregate

 

Aggregate

 

Less Aggregate

 

(In thousands)

 

Fair Value

 

Unpaid Principal

 

Unpaid Principal

 

Loans Held for Sale

 

$

20,185

 

$

19,519

 

$

666

 

 

 

 

 

 

 

 

Aggregate Fair Value

 

December 31, 2013

 

Aggregate

 

Aggregate

 

Less Aggregate

 

(In thousands)

 

Fair Value

 

Unpaid Principal

 

Unpaid Principal

 

Loans Held for Sale

 

$

15,840

 

$

15,641

 

$

199

 

Schedule of changes in level 3 assets and liabilities that were measured at fair value on a recurring basis

 

 

 

Assets (Liabilities)

 

 

 

 

 

Securities

 

Interest Rate

 

 

 

 

 

Trading

 

Available

 

Lock

 

Forward

 

(In thousands)

 

Security

 

for Sale

 

Commitments

 

Commitments

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2014

 

$

14,923

 

$

2,046

 

$

377

 

$

(96

)

Purchase of Marketable Equity Security

 

 

 

 

 

Unrealized (loss) gain, net recognized in other non-interest income

 

181

 

 

1,075

 

(67

)

Unrealized gain included in accumulated other comprehensive loss

 

 

171

 

 

 

Paydown of trading security

 

(133

)

 

 

 

Transfers to held for sale loans

 

 

 

(792

)

 

Balance as of June 30, 2014

 

$

14,971

 

$

2,217

 

$

660

 

$

(163

)

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2013

 

$

14,840

 

$

1,964

 

$

258

 

$

19

 

Purchase of Marketable Equity Security

 

 

 

 

 

Unrealized (loss) gain, net recognized in other non-interest income

 

399

 

 

1,794

 

(182

)

Unrealized gain included in accumulated other comprehensive loss

 

 

253

 

 

 

Paydown of trading account security

 

(268

)

 

 

 

Transfers to held for sale loans

 

 

 

(1,392

)

 

Balance as of June 30, 2014

 

$

14,971

 

$

2,217

 

$

660

 

$

(163

)

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) relating to instruments still held at June 30, 2014

 

$

2,144

 

$

(1,118

)

$

660

 

$

(163

)

 

 

 

Assets (Liabilities)

 

 

 

 

 

Securities

 

Interest Rate

 

 

 

 

 

Trading

 

Available

 

Lock

 

Forward

 

(In thousands)

 

Security

 

for Sale

 

Commitments

 

Commitments

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2013

 

$

16,485

 

$

1,668

 

$

2,758

 

$

(517

)

Greenpark Acquisition

 

 

 

 

 

Unrealized (loss) gain recognized in other non-interest income

 

(793

)

 

(699

)

1,920

 

Unrealized loss included in accumulated other comprehensive loss

 

 

151

 

 

 

Paydown of trading security

 

(128

)

 

 

 

Transfers to held for sale loans

 

 

 

(3,566

)

 

Balance as of June 30, 2013

 

$

15,564

 

$

1,819

 

$

(1,507

)

$

1,403

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2012

 

$

16,893

 

$

885

 

$

6,258

 

$

(1,055

)

Greenpark Acquisition

 

 

770

 

 

 

Unrealized (loss) gain recognized in other non-interest income

 

(1,073

)

 

3,300

 

2,458

 

Unrealized loss included in accumulated other comprehensive loss

 

 

164

 

 

 

Paydown of trading account security

 

(256

)

 

 

 

Transfers to held for sale loans

 

 

 

(11,065

)

 

Balance as of June 30, 2013

 

$

15,564

 

$

1,819

 

$

(1,507

)

$

1,403

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) relating to instruments still held at June 30, 2013

 

$

2,211

 

$

(1,554

)

$

(1,507

)

$

1,403

 

 

Summary of applicable non-recurring fair value measurements

 

 

 

June 30, 2014

 

December 31, 2013

 

Three months ended
June 30, 2014

 

 

 

Level 3

 

Level 3

 

Total

 

(In thousands)

 

Inputs

 

Inputs

 

Gains (Losses)

 

Assets

 

 

 

 

 

 

 

Impaired loans

 

$

5,862

 

$

5,542

 

$

320

 

Capitalized mortgage servicing rights

 

3,867

 

4,112

 

 

Other real estate owned

 

2,445

 

2,995

 

(170

)

 

 

 

 

 

 

 

 

Total

 

$

12,174

 

$

12,649

 

$

150

 

Summary of estimated fair values, and related carrying amounts, of financial instruments

 

 

 

June 30, 2014

 

 

 

Carrying

 

Fair

 

 

 

 

 

 

 

(In thousands)

 

Amount

 

Value

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

81,642

 

$

81,642

 

$

81,642

 

$

 

$

 

Trading security

 

14,971

 

14,971

 

 

 

14,971

 

Securities available for sale

 

1,080,668

 

1,080,668

 

46,465

 

1,031,986

 

2,217

 

Securities held to maturity

 

43,178

 

44,359

 

 

 

44,359

 

Restricted equity securities

 

59,479

 

59,479

 

 

59,479

 

 

Net loans

 

4,415,950

 

4,469,300

 

 

 

4,469,300

 

Loans held for sale

 

20,185

 

20,185

 

 

20,185

 

 

Accrued interest receivable

 

16,126

 

16,126

 

 

16,126

 

 

Cash surrender value of bank-owned life insurance policies

 

102,988

 

102,988

 

 

102,988

 

 

Derivative assets

 

10,198

 

10,198

 

 

9,538

 

660

 

Assets held for sale

 

2,120

 

2,120

 

 

2,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

 

$

4,478,563

 

$

4,478,880

 

$

 

$

4,478,880

 

$

 

Short-term debt

 

900,000

 

900,126

 

 

900,126

 

 

Long-term Federal Home Loan Bank advances

 

64,179

 

65,909

 

 

65,909

 

 

Subordinated borrowings

 

89,713

 

88,070

 

 

88,070

 

 

Derivative liabilities

 

13,478

 

13,478

 

398

 

12,917

 

163

 

Liabilities held for sale

 

24,171

 

24,171

 

 

24,171

 

 

 

 

 

December 31, 2013

 

 

 

Carrying

 

Fair

 

 

 

 

 

 

 

(In thousands)

 

Amount

 

Value

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

75,539

 

$

75,539

 

$

75,539

 

$

 

$

 

Trading security

 

14,840

 

14,840

 

 

 

14,840

 

Securities available for sale

 

760,048

 

760,048

 

20,891

 

737,193

 

1,964

 

Securities held to maturity

 

44,921

 

45,764

 

 

 

45,764

 

Restricted equity securities

 

50,282

 

50,282

 

 

50,282

 

 

Net loans

 

4,147,200

 

4,154,663

 

 

 

4,154,663

 

Loans held for sale

 

15,840

 

15,840

 

 

15,840

 

 

Accrued interest receivable

 

15,072

 

15,072

 

 

15,072

 

 

Cash surrender value of bank-owned life insurance policies

 

101,530

 

101,530

 

 

101,530

 

 

Derivative assets

 

8,318

 

8,318

 

242

 

7,799

 

277

 

Assets held for sale

 

3,969

 

3,969

 

 

3,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

 

$

3,848,529

 

$

3,848,926

 

$

 

$

3,848,926

 

$

 

Short-term debt

 

872,510

 

872,545

 

 

872,545

 

 

Long-term Federal Home Loan Bank advances

 

101,918

 

103,660

 

 

103,660

 

 

Subordinated borrowings

 

89,679

 

87,882

 

 

87,882

 

 

Derivative liabilities

 

11,964

 

11,964

 

 

11,964

 

 

Liabilities held for sale

 

24,834

 

24,834

 

 

24,834

 

 

 

Recurring
 
Quantitative information about the significant unobservable inputs within Level 3  
Schedule of quantitative information about the significant unobservable inputs within Level 3

 

 

 

Fair Value

 

 

 

 

 

Significant Unobservable

 

(In thousands)

 

June 30, 2014

 

Valuation Techniques

 

Unobservable Inputs

 

Input Value

 

Assets (Liabilities)

 

 

 

 

 

 

 

 

 

Trading Security

 

$

14,971

 

Discounted Cash Flow

 

Discount Rate

 

2.92

%

 

 

 

 

 

 

 

 

 

 

Trust Preferred Securities

 

2,217

 

Discounted Cash Flow

 

Discount Rate

 

15.03

%

 

 

 

 

 

 

Credit Spread

 

11.85

%

 

 

 

 

 

 

 

 

 

 

Forward Commitments

 

(163

)

Historical Trend

 

Closing Ratio

 

91.77

%

 

 

 

 

Pricing Model

 

Origination Costs, per loan

 

$

2,500

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Lock Commitment

 

660

 

Historical Trend

 

Closing Ratio

 

91.77

%

 

 

 

 

Pricing Model

 

Origination Costs, per loan

 

$

2,500

 

Total

 

$

17,685

 

 

 

 

 

 

 

 

 

 

Fair Value

 

 

 

 

 

Significant Unobservable

 

(In thousands)

 

December 31, 2013

 

Valuation Techniques

 

Unobservable Inputs

 

Input Value

 

Assets (Liabilities)

 

 

 

 

 

 

 

 

 

Trading Security

 

$

14,840

 

Discounted Cash Flow

 

Discount Rate

 

3.39

%

 

 

 

 

 

 

 

 

 

 

Trust Preferred Securities

 

1,964

 

Discounted Cash Flow

 

Discount Rate

 

13.17

%

 

 

 

 

 

 

Credit Spread

 

9.45

%

 

 

 

 

 

 

 

 

 

 

Forward Commitments

 

19

 

Historical Trend

 

Closing Ratio

 

94.83

%

 

 

 

 

Pricing Model

 

Origination Costs, per loan

 

$

2,500

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Lock Commitment

 

258

 

Historical Trend

 

Closing Ratio

 

94.83

%

 

 

 

 

Pricing Model

 

Origination Costs, per loan

 

$

2,500

 

Total

 

$

17,081

 

 

 

 

 

 

 

 

Non-recurring
 
Quantitative information about the significant unobservable inputs within Level 3  
Schedule of quantitative information about the significant unobservable inputs within Level 3

 

 

 

Fair Value

 

 

 

 

 

 

 

(in thousands)

 

June 30, 2014

 

Valuation Techniques

 

Unobservable Inputs

 

Range (Weighted Average) (a)

 

Assets

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

5,862

 

Fair value of collateral

 

Loss severity

 

0.10% to 100.0% (58.32%)

 

 

 

 

 

 

 

Appraised value

 

$0 to $774.0 $(475.9)

 

 

 

 

 

 

 

 

 

 

 

Capitalized mortgage servicing rights

 

3,867

 

Discounted cash flow

 

Constant prepayment rate (CPR)

 

7.34% to 18.58% (8.80%)

 

 

 

 

 

 

 

Discount rate

 

10.00% to 13.00% (10.39%)

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned

 

2,445

 

Fair value of collateral

 

Appraised value

 

$0 to $774.0 $(449.5)

 

Total

 

$

12,174

 

 

 

 

 

 

 

 

 

(a)    Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

 

 

 

Fair Value

 

 

 

 

 

 

 

(in thousands)

 

December 31, 2013

 

Valuation Techniques

 

Unobservable Inputs

 

Range (Weighted Average) (a)

 

Assets

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

5,542

 

Fair value of collateral

 

Loss severity

 

4.2% to 100.0% (57.41%)

 

 

 

 

 

 

 

Appraised value

 

$0 to $900.0 $(505.4)

 

 

 

 

 

 

 

 

 

 

 

Capitalized mortgage servicing rights

 

4,112

 

Discounted cash flow

 

Constant prepayment rate (CPR)

 

6.96% to 15.97% (8.58%)

 

 

 

 

 

 

 

Discount rate

 

10.00% to 13.00% (10.34%)

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned

 

2,995

 

Fair value of collateral

 

Appraised value

 

$0 to $774.0 $(413.4)

 

Total

 

$

12,649

 

 

 

 

 

 

 

 

 

(a)    Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.