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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Difference Between Fair Value and Principal Balance for Mortgage Loans Held for Sale Measured at Fair Value
The following table summarizes the difference between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of December 31, 2015 and 2014:
 
 
 
December 31,
 
 
 
2015
 
2014
 
 
 
(Dollars in Thousands)
 
 
 
 
 
 
 
 
 
Aggregate Fair Value of Mortgage Loans held for sale
 
$
111,182
 
$
94,759
 
 
 
 
 
 
 
 
 
Aggregate Unpaid Principal Balance
 
$
107,652
 
$
90,418
 
 
 
 
 
 
 
 
 
Past due loans of 90 days or more
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
Nonaccrual loans
 
$
-
 
$
-
 
Fair Value Measurements of Assets and Liabilities Measured on Recurring Basis
The following table presents the fair value measurements of assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of December 31, 2015 and 2014:
 
 
 
Fair Value Measurements on a Recurring Basis
 
 
 
As of December 31, 2015
 
 
 
 
 
Quoted Prices
 
 
 
 
 
 
 
 
 
in Active
 
Significant
 
 
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
 
 
Assets
 
Inputs
 
Inputs
 
 
 
Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
(Dollars in Thousands)
 
U.S. government sponsored agencies
 
$
14,890
 
$
-
 
$
14,890
 
$
-
 
State, county and municipal securities
 
 
161,316
 
 
-
 
 
161,316
 
 
-
 
Corporate debt securities
 
 
6,017
 
 
-
 
 
3,019
 
 
2,998
 
Mortgage-backed securities
 
 
600,962
 
 
-
 
 
600,962
 
 
-
 
Mortgage loans held for sale
 
 
111,182
 
 
-
 
 
111,182
 
 
-
 
Mortgage banking derivative instruments
 
 
2,687
 
 
-
 
 
2,687
 
 
-
 
Total recurring assets at fair value
 
$
897,054
 
$
-
 
$
894,056
 
$
2,998
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments
 
$
1,439
 
$
-
 
$
1,439
 
$
-
 
Mortgage banking derivative instruments
 
 
137
 
 
-
 
 
137
 
 
-
 
Total recurring liabilities at fair value
 
$
1,576
 
$
-
 
$
1,576
 
$
-
 
 
 
 
Fair Value Measurements on a Recurring Basis
 
 
 
As of December 31, 2014
 
 
 
 
 
 
Quoted Prices
 
 
 
 
 
 
 
 
 
 
in Active
 
Significant
 
 
 
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
 
 
Assets
 
Inputs
 
Inputs
 
 
 
Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
(Dollars in Thousands)
 
U.S. government sponsored agencies
 
$
14,678
 
$
-
 
$
14,678
 
$
-
 
State, county and municipal securities
 
 
141,375
 
 
-
 
 
141,375
 
 
-
 
Corporate debt securities
 
 
11,040
 
 
-
 
 
8,540
 
 
2,500
 
Mortgage-backed securities
 
 
374,712
 
 
8,248
 
 
366,464
 
 
-
 
Mortgage loans held for sale
 
 
94,759
 
 
-
 
 
94,759
 
 
-
 
Mortgage banking derivative instruments
 
 
1,757
 
 
-
 
 
1,757
 
 
-
 
Total recurring assets at fair value
 
$
638,321
 
$
8,248
 
$
627,573
 
$
2,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments
 
$
1,315
 
$
-
 
$
1,315
 
$
-
 
Mortgage banking derivative instruments
 
 
249
 
 
-
 
 
249
 
 
-
 
Total recurring liabilities at fair value
 
$
1,564
 
$
-
 
$
1,564
 
$
-
 
Summary of Fair Value Measurements of Assets Measured at Fair Value on Non-Recurring Basis
The following table presents the fair value measurements of assets measured at fair value on a non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy as of December 31, 2015 and 2014:
 
 
 
Fair Value Measurements on a Nonrecurring Basis
 
 
 
As of December 31, 2015
 
 
 
 
 
Quoted Prices
 
 
 
 
 
 
 
 
 
in Active
 
Significant
 
 
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
 
 
Assets
 
Inputs
 
Inputs
 
 
 
Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
(Dollars in Thousands)
 
Impaired loans carried at fair value
 
$
27,069
 
$
-
 
$
-
 
$
27,069
 
Other real estate owned
 
 
10,456
 
 
-
 
 
-
 
 
10,456
 
Purchased, non-covered other real estate owned
 
 
14,333
 
 
-
 
 
-
 
 
14,333
 
Covered other real estate owned
 
 
5,011
 
 
-
 
 
-
 
 
5,011
 
Total nonrecurring assets at fair value
 
$
56,869
 
$
-
 
$
-
 
$
56,869
 
 
 
 
Fair Value Measurements on a Nonrecurring Basis
 
 
 
As of December 31, 2014
 
 
 
 
 
Quoted Prices
 
 
 
 
 
 
 
 
 
in Active
 
Significant
 
 
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
 
 
Assets
 
Inputs
 
Inputs
 
 
 
Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
(Dollars in Thousands)
 
Impaired loans carried at fair value
 
$
30,479
 
$
-
 
$
-
 
$
30,479
 
Purchased, non-covered other real estate owned
 
 
15,585
 
 
-
 
 
-
 
 
15,585
 
Covered other real estate owned
 
 
19,907
 
 
-
 
 
-
 
 
19,907
 
Total nonrecurring assets at fair value
 
$
65,971
 
$
-
 
$
-
 
$
65,971
 
Summary of Significant Unobservable Inputs Used in Fair Value Measurement of Level 3 Assets and Liabilities
The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.
 
 
 
 
 
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
 
 
 
 
Range of
 
Average
 
 
 
Fair Value
 
Valuation Technique
 
Unobservable Inputs
 
Discounts
 
Discount
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonrecurring:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
$
27,069
 
Third party appraisals and discounted cash flows
 
Collateral discounts and discount rates
 
 
0% - 100%
 
 
29
%
Other Real Estate Owned
 
$
10,456
 
Third party appraisals, sales contracts, Broker price opinions
 
Collateral discounts and estimated costs to sell
 
 
10% - 90%
 
 
13
%
Purchased non-covered real estate owned
 
$
14,333
 
Third party appraisals
 
Collateral discounts and estimated costs to sell
 
 
10% -69%
 
 
19
%
Covered real estate owned
 
$
5,011
 
Third party appraisals
 
Collateral discounts and estimated costs to sell
 
 
0% - 74%
 
 
12
%
Recurring:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities available for sale
 
$
2,998
 
Discounted par values
 
Credit quality of underlying issuer
 
 
0%
 
 
0
%
As of December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonrecurring:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
$
30,479
 
Third party appraisals and discounted cash flows
 
Collateral discounts and discount rates
 
 
0% - 50%
 
 
20
%
Purchased non-covered real estate owned
 
$
15,585
 
Third party appraisals
 
Collateral discounts and estimated costs to sell
 
 
10% -96%
 
 
33
%
Covered real estate owned
 
$
19,907
 
Third party appraisals
 
Collateral discounts and estimated costs to sell
 
 
10% - 90%
 
 
15
%
Recurring:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities available for sale
 
$
2,500
 
Discounted par values
 
Credit quality of underlying issuer
 
 
0%
 
 
0
%
Carrying Amount and Estimated Fair Value of Financial Instruments
The carrying amount and estimated fair value of the Company’s financial instruments, not shown elsewhere in these financial statements, were as follows:
 
 
 
Fair Value Measurements at December 31, 2015 Using:
 
 
 
Carrying
 
 
 
 
 
 
 
 
 
 
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
(Dollars in Thousands)
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
118,518
 
$
118,518
 
$
-
 
$
-
 
$
118,518
 
Federal funds sold and interest-bearing accounts
 
 
272,045
 
 
272,045
 
 
-
 
 
 
 
 
272,045
 
Loans, net
 
 
3,971,974
 
 
-
 
 
-
 
 
3,982,606
 
 
3,982,606
 
FDIC loss-share receivable
 
 
6,301
 
 
-
 
 
-
 
 
(944)
 
 
(944)
 
Accrued interest receivable
 
 
21,274
 
 
21,274
 
 
-
 
 
-
 
 
21,274
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
4,879,290
 
 
-
 
 
4,880,294
 
 
-
 
 
4,880,294
 
Securities sold under agreements to repurchase
 
 
63,585
 
 
63,585
 
 
-
 
 
-
 
 
36,585
 
Other borrowings
 
 
39,000
 
 
-
 
 
39,000
 
 
-
 
 
39,000
 
Accrued interest payable
 
 
1,054
 
 
1,054
 
 
-
 
 
-
 
 
1,054
 
Subordinated deferrable interest debentures
 
 
69,874
 
 
-
 
 
52,785
 
 
-
 
 
52,785
 
  
 
 
Fair Value Measurements at December 31, 2014 Using:
 
 
 
Carrying
 
 
 
 
 
 
 
 
 
 
 
Amount
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
(Dollars in Thousands)
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
78,036
 
$
78,036
 
$
-
 
$
-
 
$
78,036
 
Federal funds sold and interest-bearing accounts
 
 
92,323
 
 
92,323
 
 
-
 
 
 
 
 
92,323
 
Loans, net
 
 
2,783,763
 
 
-
 
 
-
 
 
2,785,627
 
 
2,785,627
 
FDIC loss-share receivable
 
 
31,351
 
 
-
 
 
-
 
 
18,764
 
 
18,764
 
Accrued interest receivable
 
 
17,023
 
 
17,023
 
 
-
 
 
-
 
 
17,023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
3,431,149
 
 
-
 
 
3,432,059
 
 
-
 
 
3,432,059
 
Securities sold under agreements to repurchase
 
 
73,310
 
 
73,310
 
 
-
 
 
-
 
 
73,310
 
Other borrowings
 
 
78,881
 
 
-
 
 
78,881
 
 
-
 
 
78,881
 
Accrued interest payable
 
 
1,382
 
 
1,382
 
 
-
 
 
-
 
 
1,382
 
Subordinated deferrable interest debentures
 
 
65,325
 
 
-
 
 
46,564
 
 
-
 
 
46,564