XML 44 R29.htm IDEA: XBRL DOCUMENT v3.20.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Carrying Amount And Estimated Fair Value Of Assets And Liabilities



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



March 31, 2020



 

 

 

 

Quoted prices in

 

Significant other

 

Significant



 

 

 

 

active markets for

 

observable

 

unobservable

    

Carrying

 

Estimated

 

identical assets

 

inputs

 

inputs



amount

 

fair value

 

(Level 1)

 

(Level 2)

 

(Level 3)

Investment securities, available-for-sale

$            1,353,278 

 

$            1,353,278 

 

$                            - 

 

$               1,160,327 

 

$                192,951 

Federal Home Loan Bank and Atlantic Central Bankers Bank stock

 1,142 

 

 1,142 

 

 -

 

 -

 

 1,142 

Commercial loans held-for-sale

 1,716,450 

 

 1,716,450 

 

 -

 

 -

 

 1,716,450 

Loans, net of deferred loan fees and costs

 1,985,755 

 

 1,975,955 

 

 -

 

 -

 

 1,975,955 

Investment in unconsolidated entity

 34,273 

 

 34,273 

 

 -

 

 -

 

 34,273 

Assets held-for-sale from discontinued operations

 134,118 

 

 134,118 

 

 -

 

 -

 

 134,118 

Interest rate swaps, liability

 2,390 

 

 2,390 

 

 -

 

 2,390 

 

 -

Demand and interest checking

 4,512,949 

 

 4,512,949 

 

 -

 

 4,512,949 

 

 -

Savings and money market

178,174 

 

 178,174 

 

 -

 

 178,174 

 

 -

Subordinated debentures

 13,401 

 

 6,853 

 

 -

 

 -

 

 6,853 

Securities sold under agreements to repurchase

 42 

 

 42 

 

 42 

 

 -

 

 -







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



December 31, 2019



 

 

 

 

Quoted prices in

 

Significant other

 

Significant



 

 

 

 

active markets for

 

observable

 

unobservable

    

Carrying

 

Estimated

 

identical assets

 

inputs

 

inputs



amount

 

fair value

 

(Level 1)

 

(Level 2)

 

(Level 3)

Investment securities, available-for-sale

$            1,320,692 

 

$            1,320,692 

 

$                            - 

 

$               1,203,359 

 

$                117,333 

Investment securities, held-to-maturity

 84,387 

 

 83,002 

 

 -

 

 75,850 

 

 7,152 

Federal Home Loan Bank and Atlantic Central Bankers Bank stock

 5,342 

 

 5,342 

 

 -

 

 -

 

 5,342 

Commercial loans held-for-sale

 1,180,546 

 

 1,180,546 

 

 -

 

 -

 

 1,180,546 

Loans, net of deferred loan fees and costs

 1,824,245 

 

 1,826,154 

 

 -

 

 -

 

 1,826,154 

Investment in unconsolidated entity

 39,154 

 

 39,154 

 

 -

 

 -

 

 39,154 

Assets held-for-sale from discontinued operations

 140,657 

 

 140,657 

 

 -

 

 -

 

 140,657 

Interest rate swaps, liability

 232 

 

 232 

 

 -

 

 232 

 

 -

Demand and interest checking

 4,402,740 

 

 4,402,740 

 

 -

 

 4,402,740 

 

 -

Savings and money market

174,290 

 

 174,290 

 

 -

 

 174,290 

 

 -

Time deposits

 475,000 

 

 475,000 

 

 -

 

 -

 

 475,000 

Subordinated debentures

13,401 

 

 9,736 

 

 -

 

 -

 

 9,736 

Securities sold under agreements to repurchase

 82 

 

 82 

 

 82 

 

 -

 

 -



Changes In Company's Level 3 Assets



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Fair Value Measurements Using



 

Significant Unobservable Inputs



 

(Level 3)



 

 

 

 

 

 

 

 



 

Available-for-sale

 

Commercial loans



 

securities

 

held-for-sale



 

March 31, 2020

 

December 31, 2019

 

March 31, 2020

 

December 31, 2019

Beginning balance

 

$                         117,333 

 

$                              24,390 

 

$                         1,180,546 

 

$                            688,471 

Transfers into level 3

 

 -

 

 100,664 

 

 -

 

 -

Transfers out of level 3

 

 -

 

 -

 

-

 

 -

Reclass of held-to-maturity securities to available-for-sale

 

 85,151 

 

 -

 

 -

 

 -

Total gains or (losses) (realized/unrealized)

 

 

 

 

 

 

 

 

Included in earnings

 

 -

 

 -

 

 (2,998)

 

 25,986 

Included in other comprehensive income

 

 734 

 

 688 

 

 -

 

 -

Purchases, issuances, sales and settlements

 

 

 

 

 

 

 

 

Purchases

 

 -

 

 -

 

 -

 

 -

Issuances

 

 -

 

 -

 

 541,615 

 

 1,795,376 

Sales

 

 -

 

 -

 

 -

 

 (1,329,287)

Settlements

 

 (10,267)

 

 (8,409)

 

 (2,713)

 

 -

Ending balance

 

$                         192,951 

 

$                            117,333 

 

$                         1,716,450 

 

$                         1,180,546 



 

 

 

 

 

 

 

 

Total gains or (losses) year to date included

 

 

 

 

 

 

 

 

in earnings attributable to the change in

 

 

 

 

 

 

 

 

unrealized gains or losses relating to assets still

 

 

 

 

 

 

 

 

held at the reporting date as shown above.

 

$                                    - 

 

$                                        - 

 

$                              (2,855)

 

$                                   963 



The Company’s Level 3 asset activity for the categories shown for year to date are summarized below (in thousands):





 

 

 

 

 

 

 

 



Fair Value Measurements Using



Significant Unobservable Inputs



(Level 3)



 

 

 

 

 

 

 

 



Investment in

 

Assets held-for-sale



unconsolidated entity

 

from discontinued operations



 

March 31, 2020

 

December 31, 2019

 

March 31, 2020

 

December 31, 2019

Beginning balance

 

$                           39,154 

 

$                              59,273 

 

$                            140,657 

 

$                            197,831 

Transfers into level 3

 

 -

 

 -

 

 -

 

 -

Transfers out of level 3

 

 -

 

 -

 

 -

 

 -

Total gains or (losses) (realized/unrealized)

 

 

 

 

 

 

 

 

Included in earnings

 

 (45)

 

 -

 

 (819)

 

 (487)

Included in other comprehensive income

 

 -

 

 -

 

 -

 

 -

Purchases, issuances, sales, settlements and charge-offs

 

 

 

 

 

 

 

 

Purchases

 

 -

 

 -

 

 -

 

 -

Issuances

 

 -

 

 -

 

 20 

 

 2,125 

Sales

 

 -

 

 -

 

 (1,252)

 

 (7,136)

Settlements

 

 (4,836)

 

 (20,119)

 

 (4,488)

 

 (49,021)

Charge-offs

 

 -

 

 -

 

 -

 

 (2,655)

Ending balance

 

$                           34,273 

 

$                              39,154 

 

$                            134,118 

 

$                            140,657 



 

 

 

 

 

 

 

 

Total losses year to date included

 

 

 

 

 

 

 

 

in earnings attributable to the change in

 

 

 

 

 

 

 

 

unrealized gains or losses relating to assets still

 

 

 

 

 

 

 

 

held at the reporting date as shown above.

 

$                               (45)

 

$                                        - 

 

$                                 (819)

 

$                                 (487)



Fair Value Inputs, Assets, Quantitative Information









 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

Level 3 instruments only



 

 

 

 

 

 

 

 

 

Weighted

 



 

Fair value at

 

 

 

 

 

Range at

 

average at

 



 

March 31, 2020

 

Valuation techniques

 

Unobservable inputs

 

March 31, 2020

 

March 31, 2020

 



 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage backed investment

 

$             112,199 

 

Discounted cash flow

 

Discount rate

 

5.00% - 9.13%

 

6.17%

 

securities available-for-sale (a)

 

 

 

 

 

 

 

 

 

 

 

Insurance liquidating trust preferred security,

 

 5,152 

 

Discounted cash flow

 

Discount rate

 

9.80%

 

9.80%

 

available for sale (b)

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities (c)

 

 75,600 

 

Traders' pricing

 

Price indications

 

-

 

-

 

Federal Home Loan Bank and Atlantic

 

 1,142 

 

Cost

 

N/A

 

N/A

 

N/A

 

   Central Bankers Bank stock

 

 

 

 

 

 

 

 

 

 

 

Loans, net of deferred loan fees and costs (d)

 

 1,975,955 

 

Discounted cash flow

 

Discount rate

 

3.80% - 7.50%

 

3.68%

 



 

 

 

 

 

 

 

 

 

 

 

  Commercial - SBA (e)

 

 223,988 

 

Traders' pricing

 

Offered quotes

 

$103.50 - $107.93

 

$104.70

 

  Commercial - fixed (f)

 

 85,774 

 

Discounted cash flow

 

Discount rate

 

4.80% - 6.45%

 

5.70%

 

  Commercial - floating (g)

 

 1,406,688 

 

Discounted cash flow

 

Discount rate

 

5.00% - 7.10%

 

5.09%

 

Commercial loans held-for-sale

 

 1,716,450 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

Investment in unconsolidated entity (h)

 

 34,273 

 

Discounted cash flow

 

Discount rate

 

7.00%

 

7.00%

 



 

 

 

 

 

Default rate

 

1.00%

 

1.00%

 

Assets held-for-sale from discontinued operations (i)

 

 134,118 

 

Discounted cash flow

 

Discount rate,

 

3.33% - 7.56%

 

4.60%

 



 

 

 

 

 

Credit analysis

 

 

 

 

 

Subordinated debentures (j)

 

 6,853 

 

Discounted cash flow

 

Discount rate

 

9.80%

 

9.80%

 







 

 

 

 

 

 

 

 



 

Level 3 instruments only



 

 

 

 

 

 

 

 



 

Fair value at

 

 

 

 

 

Range at



 

December 31, 2019

 

Valuation techniques

 

Unobservable inputs

 

December 31, 2019



 

 

 

 

 

 

 

 

Commercial mortgage backed investment

 

$             117,333 

 

Discounted cash flow

 

Discount rate

 

4.05% - 8.18%

securities available-for-sale (a)

 

 

 

 

 

 

 

 

Insurance liquidating trust preferred security,

 

 7,152 

 

Discounted cash flow

 

Discount rate

 

8.01%

available for sale (b)

 

 

 

 

 

 

 

 

Federal Home Loan Bank and Atlantic

 

 5,342 

 

Cost

 

N/A

 

N/A

   Central Bankers Bank stock

 

 

 

 

 

 

 

 

Loans, net of deferred loan fees and costs (d)

 

 1,826,154 

 

Discounted cash flow

 

Discount rate

 

3.11% - 6.93%



 

 

 

 

 

 

 

 

  Commercial - SBA (e)

 

 220,358 

 

Traders' pricing

 

Offered quotes

 

$101.6 - $107.9

  Commercial - fixed (f)

 

 88,986 

 

Discounted cash flow

 

Discount rate

 

4.33% - 7.13%

  Commercial - floating (g)

 

 871,202 

 

Discounted cash flow

 

Discount rate

 

4.51% - 6.81%

Commercial loans held-for-sale

 

 1,180,546 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Investment in unconsolidated entity (h)

 

 39,154 

 

Discounted cash flow

 

Discount rate

 

5.84%



 

 

 

 

 

Default rate

 

1.00%

Assets held-for-sale from discontinued operations (i)

 

 140,657 

 

Discounted cash flow

 

Discount rate,

 

3.49%  -7.58%



 

 

 

 

 

Credit analysis

 

 

Subordinated debentures (j)

 

 9,736 

 

Discounted cash flow

 

Discount rate

 

8.01%



Fair Value, Measurements, Recurring [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets Measured At Fair Value On A Recurring And Nonrecurring Basis



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Fair Value Measurements at Reporting Date Using



 

 

 

Quoted prices in active

 

Significant other

 

Significant



 

 

 

markets for identical

 

observable

 

unobservable



 

Fair value

 

assets

 

inputs

 

inputs



 

March 31, 2020

 

(Level 1)

 

(Level 2)

 

(Level 3)



 

 

 

 

 

 

 

 

Investment securities, available-for-sale

 

 

 

 

 

 

 

 

U.S. Government agency securities

 

$                           50,387 

 

$                                       - 

 

$                             50,387 

 

$                                       - 

Asset-backed securities

 

 229,252 

 

 -

 

 229,252 

 

 -

Obligations of states and political subdivisions

 

 64,417 

 

 -

 

 64,417 

 

 -

Residential mortgage-backed securities

 

 326,322 

 

 -

 

 326,322 

 

 -

Collateralized mortgage obligation securities

 

 210,153 

 

 -

 

 210,153 

 

 -

Commercial mortgage-backed securities

 

 391,995 

 

 -

 

 279,796 

 

 112,199 

Corporate debt securities

 

 80,752 

 

 -

 

 -

 

 80,752 

Total investment securities available-for-sale

 

 1,353,278 

 

 -

 

 1,160,327 

 

 192,951 

Commercial loans held-for-sale

 

 1,716,450 

 

 -

 

 -

 

 1,716,450 

Investment in unconsolidated entity

 

 34,273 

 

 -

 

 -

 

 34,273 

Assets held-for-sale from discontinued operations

 

 134,118 

 

 -

 

 -

 

 134,118 

Interest rate swaps, liability

 

 2,390 

 

 -

 

 2,390 

 

 -



 

$                      3,235,729 

 

$                                       - 

 

$                        1,157,937 

 

$                        2,077,792 







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Fair Value Measurements at Reporting Date Using



 

 

 

Quoted prices in active

 

Significant other

 

Significant



 

 

 

markets for identical

 

observable

 

unobservable



 

Fair value

 

assets

 

inputs

 

inputs



 

December 31, 2019

 

(Level 1)

 

(Level 2)

 

(Level 3)



 

 

 

 

 

 

 

 

Investment securities, available-for-sale

 

 

 

 

 

 

 

 

U.S. Government agency securities

 

$                           52,910 

 

$                                       - 

 

$                             52,910 

 

$                                       - 

Asset-backed securities

 

 244,349 

 

 -

 

 244,349 

 

 -

Obligations of states and political subdivisions

 

 65,568 

 

 -

 

 65,568 

 

 -

Residential mortgage-backed securities

 

 336,596 

 

 -

 

 336,596 

 

 -

Collateralized mortgage obligation securities

 

 222,727 

 

 -

 

 222,727 

 

 -

Commercial mortgage-backed securities

 

 398,542 

 

 -

 

 281,209 

 

 117,333 

Total investment securities available-for-sale

 

 1,320,692 

 

 -

 

 1,203,359 

 

 117,333 

Commercial loans held-for-sale

 

 1,180,546 

 

 -

 

 -

 

 1,180,546 

Investment in unconsolidated entity

 

 39,154 

 

 -

 

 -

 

 39,154 

Assets held-for-sale from discontinued operations

 

 140,657 

 

 -

 

 -

 

 140,657 

Interest rate swaps, liability

 

 232 

 

 -

 

 232 

 

 -



 

$                      2,680,817 

 

$                                       - 

 

$                        1,203,127 

 

$                        1,477,690 



 

 

 

 

 

 

 

 



Fair Value, Measurements, Nonrecurring [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Assets Measured At Fair Value On A Recurring And Nonrecurring Basis



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Fair Value Measurements at Reporting Date Using



 

 

 

Quoted prices in active

 

Significant other

 

Significant



 

 

 

markets for identical

 

observable

 

unobservable



 

Fair value

 

assets

 

inputs

 

inputs (1)

Description

 

March 31, 2020

 

(Level 1)

 

(Level 2)

 

(Level 3)



 

 

 

 

 

 

 

 

Collateral dependent loans (1)

 

$                           18,994 

 

$                                       - 

 

$                                       - 

 

$                             18,994 

Intangible assets

 

 2,857 

 

 -

 

 -

 

 2,857 



 

$                           21,851 

 

$                                       - 

 

$                                       - 

 

$                             21,851 









 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

 

 

Fair Value Measurements at Reporting Date Using



 

 

 

Quoted prices in active

 

Significant other

 

Significant



 

 

 

markets for identical

 

observable

 

unobservable



 

Fair value

 

assets

 

inputs

 

inputs (1)

Description

 

December 31, 2019

 

(Level 1)

 

(Level 2)

 

(Level 3)



 

 

 

 

 

 

 

 

Collateral dependent loans (1)

 

$                             3,651 

 

$                                       - 

 

$                                       - 

 

$                               3,651 

Intangible assets

 

 2,315 

 

 -

 

 -

 

 2,315 



 

$                             5,966 

 

$                                       - 

 

$                                       - 

 

$                               5,966 



(1)

The method of valuation approach for the collateral dependent loans was the market value approach based upon appraisals of the underlying collateral by external appraisers, reduced by 7% to 10% for estimated selling costs. Intangible assets are valued based upon internal analyses.