XML 39 R44.htm IDEA: XBRL DOCUMENT v3.20.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
3 Months Ended
Mar. 31, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS  
Schedule of assets and liabilities measured and recorded at fair value

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2020

 

​

​

​

​

​

Quoted prices

​

​

​

​

​

​

 

​

​

​

​

​

in active

​

Significant

​

​

​

 

​

​

​

​

​

markets

​

other

​

Significant

 

​

​

​

​

​

for identical

​

observable

​

unobservable

 

​

​

​

​

​

assets

​

inputs

​

inputs

 

(dollars in thousands)

​

Total

​

(Level 1)

​

(Level 2)

​

(Level 3)

 

Assets and liabilities measured at fair value on a recurring basis:

    

​

    

    

​

    

    

​

    

    

​

    

​

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment securities available for sale:

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. government sponsored entities and U.S. agency securities

​

$

47,357

​

$

—

​

$

47,357

​

$

—

​

Mortgage-backed securities - agency

​

 

326,700

​

 

—

​

 

326,700

​

 

—

​

Mortgage-backed securities - non-agency

​

​

27,281

​

​

—

​

​

27,281

​

​

—

​

State and municipal securities

​

 

116,094

​

 

—

​

 

116,094

​

 

—

​

Corporate securities

​

 

138,822

​

 

—

​

 

137,897

​

 

925

​

Equity securities

​

​

5,640

​

​

—

​

​

5,640

​

​

—

​

Loans held for sale

​

 

113,852

​

 

—

​

 

113,852

​

 

—

​

Interest rate lock commitments

​

 

4,305

​

 

—

​

 

4,305

​

 

—

​

Interest rate swap contracts

​

​

888

​

​

—

​

​

888

​

​

—

​

Total

​

$

780,939

​

$

—

​

$

780,014

​

$

925

​

Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate swap contracts

​

$

888

​

$

—

​

$

888

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Assets measured at fair value on a non-recurring basis:

​

​

​

​

​

​

​

​

​

​

​

​

​

Loan servicing rights

​

$

44,566

​

$

—

​

$

—

​

$

44,566

​

Mortgage servicing rights held for sale

​

​

1,460

​

​

—

​

​

—

​

​

1,460

​

Nonperforming loans

​

 

15,972

​

 

—

​

 

15,450

​

 

522

​

Other real estate owned

​

​

909

​

​

—

​

​

909

​

​

—

​

Assets held for sale

​

 

3,790

​

 

—

​

 

3,790

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

 

​

​

​

​

​

Quoted prices

​

​

​

​

​

 

​

​

​

​

​

in active

​

Significant

​

​

​

 

​

​

​

​

​

markets

​

other

​

Significant

 

​

​

​

​

​

for identical

​

observable

​

unobservable

 

​

​

​

​

​

assets

​

inputs

​

inputs

 

(dollars in thousands)

​

Total

​

(Level 1)

​

(Level 2)

​

(Level 3)

 

Assets and liabilities measured at fair value on a recurring basis:

    

​

    

    

​

    

    

​

    

    

​

    

​

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment securities available for sale:

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. government sponsored entities and U.S. agency securities

​

$

60,020

​

$

—

​

$

60,020

​

$

—

​

Mortgage-backed securities - agency

​

 

324,974

​

 

—

​

 

324,974

​

 

—

​

Mortgage-backed securities - non-agency

​

 

17,148

​

 

—

​

 

17,148

​

 

—

​

State and municipal securities

​

 

124,555

​

 

—

​

 

124,555

​

 

—

​

Corporate securities

​

 

122,736

​

 

—

​

 

121,781

​

 

955

​

Equity securities

​

​

5,621

​

​

—

​

​

5,621

​

​

—

​

Loans held for sale

​

 

16,431

​

 

—

​

 

16,431

​

 

—

​

Interest rate lock commitments

​

 

3,350

​

 

—

​

 

3,350

​

 

—

​

Interest rate swap contracts

​

 

306

​

 

—

​

 

306

​

 

—

​

Total

​

$

675,141

​

$

—

​

$

674,186

​

$

955

​

Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest rate swap contracts

​

$

306

​

$

—

​

$

306

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Assets measured at fair value on a non-recurring basis:

​

​

​

​

​

​

​

​

​

​

​

​

​

Loan servicing rights

​

$

53,824

​

$

—

​

$

—

​

$

53,824

​

Mortgage servicing rights held for sale

​

​

1,972

​

​

—

​

​

—

​

​

1,972

​

Nonperforming loans

​

​

14,693

​

​

—

​

​

12,518

​

​

2,175

​

Assets held for sale

​

​

3,974

​

​

—

​

​

3,974

​

​

—

​

Schedule presenting activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

(dollars in thousands)

​

2020

​

2019

Balance, beginning of period

​

$

955

​

$

1,923

Total realized in earnings (1)

​

​

2

​

​

22

Total unrealized in other comprehensive income (2)

​

​

(30)

​

​

7

Net settlements (principal and interest)

​

​

(2)

​

​

(22)

Balance, end of period

​

$

925

​

$

1,930

(1)Amounts included in interest income from investment securities taxable in the consolidated statements of income.
(2)Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period.

​

Schedule presents quantitative information about significant unobservable inputs

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Valuation

​

Unobservable

​

​

(dollars in thousands)

​

​

Fair Value

​

technique

​

input / assumptions

​

Range (weighted average)(1)

March 31, 2020

​

​

​

​

​

​

​

​

​

Corporate securities

​

$

925

​

Consensus pricing

​

Net market price

​

-1.5% - 2.0% (1.0%)

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

​

​

​

​

​

​

​

Corporate securities

​

$

955

​

Consensus pricing

​

Net market price

​

-2.0% - 2.5% (1.5%)

(1)Unobservable inputs were weighted by the relative fair value of the instruments.
Schedule presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Valuation

​

​

Unobservable

​

​

​

(dollars in thousands)

​

​

Fair Value

​

​

technique

​

​

input / assumptions

​

​

Range (weighted average)(1)

March 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

Loan servicing rights:

​

​

​

​

​

​

​

​

​

​

​

​

Commercial MSR

​

$

43,497

​

​

Discounted cash flow

​

​

Prepayment speed

​

​

8.00% - 22.50% (8.38%)

​

​

​

​

​

​

​

​

​

Discount rate

​

​

10.00% - 27.00% (11.43%)

​

​

​

​

​

​

​

​

​

​

​

​

​

SBA servicing rights

​

$

1,069

​

​

Discounted cash flow

​

​

Prepayment speed

​

​

8.31% - 9.21% (8.60%)

​

​

​

​

​

​

​

​

​

Discount rate

​

​

No range (11.70%)

​

​

​

​

​

​

​

​

​

​

​

​

​

MSR held for sale

​

$

1,460

​

​

Discounted cash flow

​

​

Prepayment speed

​

​

14.04% - 26.28% (16.92%)

​

​

​

​

​

​

​

​

​

Discount rate

​

​

9.00% - 11.50% (10.13%)

​

​

​

​

​

​

​

​

​

​

​

​

​

Other:

​

​

​

​

​

​

​

​

​

​

​

​

Nonperforming loans

​

$

522

​

​

Fair value of collateral

​

​

Discount for type of property,

​

​

No range (4.50%)

​

​

​

​

​

​

​

​

​

age of appraisal and current status

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

​

​

​

​

​

​

​

​

​

​

Loan servicing rights:

​

​

​

​

​

​

​

​

​

​

​

​

Commercial MSR

​

$

52,693

​

​

Discounted cash flow

​

​

Prepayment speed

​

​

8.00% - 18.00% (8.20%)

​

​

​

​

​

​

​

​

​

Discount rate

​

​

10.00% - 14.00% (11.02%)

​

​

​

​

​

​

​

​

​

​

​

​

​

SBA servicing rights

​

$

1,131

​

​

Discounted cash flow

​

​

Prepayment speed

​

​

8.31% - 9.21% (8.60%)

​

​

​

​

​

​

​

​

​

Discount rate

​

​

No range (11.70%)

​

​

​

​

​

​

​

​

​

​

​

​

​

MSR held for sale

​

$

1,972

​

​

Discounted cash flow

​

​

Prepayment speed

​

​

8.64% - 26.28% (12.42%)

​

​

​

​

​

​

​

​

​

Discount rate

​

​

9.50% - 12.50% (10.75%)

​

​

​

​

​

​

​

​

​

​

​

​

​

Other:

​

​

​

​

​

​

​

​

​

​

​

​

Nonperforming loans

​

$

2,175

​

​

Fair value of collateral

​

​

Discount for type of property,

​

​

4.32% - 8.00% (5.22%)

​

​

​

​

​

​

​

​

​

age of appraisal and current status

​

​

​

(1)Unobservable inputs were weighted by the relative fair value of the instruments.
Schedule of losses recognized on assets measured on a non-recurring basis

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

​

March 31, 

​

(dollars in thousands)

    

2020

    

2019

 

Loan servicing rights

​

$

8,468

​

$

25

​

Mortgage servicing rights held for sale

​

​

496

​

​

—

​

Nonperforming loans

​

​

12,919

​

​

981

​

Other real estate owned

​

​

605

​

​

16

​

Assets held for sale

​

​

146

​

​

—

​

Total losses on assets measured on a nonrecurring basis

​

$

22,634

​

$

1,022

​

Schedule of the fair value option for newly originated residential and commercial loans held for sale

The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of March 31, 2020 and December 31, 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2020

​

December 31, 2019

​

​

Aggregate

​

​

​

​

Contractual

​

Aggregate

​

​

​

​

Contractual

(dollars in thousands)

​

fair value

​

Difference

​

principal

​

fair value

​

Difference

​

principal

Commercial loans held for sale

    

$

1,706

​

$

48

​

$

1,658

​

$

8,236

​

$

206

​

$

8,030

Residential loans held for sale

    

​

12,458

​

​

667

​

​

11,791

​

​

8,195

​

​

446

​

​

7,749

Consumer loans held for sale

​

​

99,688

​

​

—

​

​

99,688

​

​

—

​

​

—

​

​

—

Total loans held for sale

​

$

113,852

​

$

715

​

$

113,137

​

$

16,431

​

$

652

​

$

15,779

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

​

March 31, 

(dollars in thousands)

​

2020

​

2019

Commercial loans held for sale

​

$

(158)

​

$

(328)

Residential loans held for sale

​

​

255

​

​

(57)

Total loans held for sale

​

$

97

​

$

(385)

Schedule presentation of summary of the carrying values and fair value estimates of certain financial instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2020

 

​

​

​

​

​

​

​

​

Quoted prices

​

​

​

​

​

​

 

​

​

​

​

​

​

​

​

in active

​

Significant

​

​

​

 

​

​

​

​

​

​

​

​

markets

​

other

​

Significant

 

​

​

​

​

​

​

​

​

for identical

​

observable

​

unobservable

 

​

​

Carrying

​

​

​

​

assets

​

inputs

​

inputs

 

(dollars in thousands)

​

Amount

​

Fair Value

​

(Level 1)

​

(Level 2)

​

(Level 3)

 

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and due from banks

    

$

445,097

    

$

445,097

    

$

445,097

    

$

—

    

$

—

​

Federal funds sold

​

 

4,299

​

 

4,299

​

 

4,299

​

 

—

​

 

—

​

Nonmarketable equity securities

​

 

46,068

​

 

46,068

​

 

—

​

 

46,068

​

 

—

​

Loans, net

​

 

4,337,659

​

 

4,387,244

​

 

—

​

 

—

​

 

4,387,244

​

Accrued interest receivable

​

 

16,532

​

 

16,532

​

 

—

​

 

16,532

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Deposits

​

$

4,650,640

​

$

4,661,375

​

$

—

​

$

4,661,375

​

$

—

​

Short-term borrowings

​

 

43,578

​

 

43,578

​

 

—

​

 

43,578

​

 

—

​

FHLB and other borrowings

​

 

593,089

​

 

631,450

​

 

—

​

 

631,450

​

 

—

​

Subordinated debt

​

 

169,505

​

 

160,344

​

 

—

​

 

160,344

​

 

—

​

Trust preferred debentures

​

 

48,420

​

 

42,391

​

 

—

​

 

42,391

​

 

—

​

Accrued interest payable

​

 

7,078

​

 

7,078

​

 

—

​

 

7,078

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2019

​

​

​

​

​

​

​

​

Quoted prices

​

​

​

​

​

​

​

​

​

​

​

​

​

​

in active

​

Significant

​

​

​

​

​

​

​

​

​

​

​

markets

​

other

​

Significant

​

​

​

​

​

​

​

​

for identical

​

observable

​

unobservable

​

​

Carrying

​

​

​

​

assets

​

inputs

​

inputs

(dollars in thousands)

​

Amount

​

Fair Value

​

(Level 1)

​

(Level 2)

​

(Level 3)

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and due from banks

    

$

392,694

    

$

392,694

    

$

392,694

    

$

—

    

$

—

Federal funds sold

​

 

1,811

​

 

1,811

​

 

1,811

​

 

—

​

 

—

Nonmarketable equity securities

​

 

44,505

​

 

44,505

​

 

—

​

 

44,505

​

 

—

Loans, net

​

 

4,373,382

​

 

4,385,768

​

 

—

​

 

—

​

 

4,385,768

Accrued interest receivable

​

 

16,346

​

 

16,346

​

 

—

​

 

16,346

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Deposits

​

$

4,544,254

​

$

4,548,327

​

$

—

​

$

4,548,327

​

$

—

Short-term borrowings

​

 

82,029

​

 

82,029

​

 

—

​

 

82,029

​

 

—

FHLB and other borrowings

​

 

493,311

​

 

506,832

​

 

—

​

 

506,832

​

 

—

Subordinated debt

​

 

176,653

​

 

182,189

​

 

—

​

 

182,189

​

 

—

Trust preferred debentures

​

 

48,288

​

 

53,811

​

 

—

​

 

53,811

​

 

—

Accrued interest payable

​

 

6,400

​

 

6,400

​

 

—

​

 

6,400

​

 

—