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Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2014
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, 2014 and 2013:

 

  December 31,  
  2014   2013  
  (Dollars in Thousands)  

Aggregate Fair Value of Mortgage Loans held for sale

$ 94,759    $ 67,278   

Aggregate Unpaid Principal Balance

$   90,418    $   65,522   

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, 2014 and 2013:

 

  Fair Value Measurements on a Recurring Basis
As of December 31, 2014
 
  Fair Value   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(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    $ -   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  Fair Value Measurements on a Recurring Basis
As of December 31, 2013
 
  Fair Value   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
 
  (Dollars in Thousands)  

U.S. government sponsored agencies

$ 13,926    $ -    $ 13,926    $ -   

State, county and municipal securities

  112,754      -      112,754      -   

Collateralized debt obligations

  1,480      1,480      -      -   

Corporate debt securities

  10,325      -      8,325      2,000   

Mortgage-backed securities

  347,750      182,461      165,289      -   

Mortgage loans held for sale

  67,278      -      67,278      -   

Mortgage banking derivative instruments

  1,180      -      1,180      -   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total recurring assets at fair value

$ 554,693    $     183,941    $ 368,752    $         2,000   
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments

$ 370    $ -    $ 370    $ -   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total recurring liabilities at fair value

$ 370    $ -    $ 370    $ -   
  

 

 

    

 

 

    

 

 

    

 

 

 

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, 2014 and 2013:

 

  Fair Value Measurements on a Nonrecurring Basis
As of December 31, 2014
 
  Fair Value   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(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   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  Fair Value Measurements on a Nonrecurring Basis
As of December 31, 2013
 
  Fair Value   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
 
  (Dollars in Thousands)  

Impaired loans carried at fair value

$ 42,546    $ -    $ -    $ 42,546   

Purchased, non-covered other real estate owned

  4,276      -      -      4,276   

Covered other real estate owned

  45,893      -      -      45,893   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total nonrecurring assets at fair value

$   92,715    $             -    $             -    $     92,715   
  

 

 

    

 

 

    

 

 

    

 

 

 

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.

 

         Fair Value         

Valuation Technique

  

    Unobservable Inputs    

  

Range of
    Discounts    

  

    Weighted    
Average
Discount

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%

As of December 31, 2013

              

Nonrecurring:

              

Impaired loans

     $ 42,546       Third party appraisals and discounted cash flows    Collateral discounts and discount rates        4% - 75%    23%

Purchased non-covered real estate owned

     $ 4,276       Third party appraisals    Collateral discounts and estimated costs to sell        15% - 63%    29%

Covered real estate owned

     $ 45,893       Third party appraisals    Collateral discounts and estimated costs to sell        10% - 86%    17%

Recurring:

              

Investment securities available for sale

     $ 2,000       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, 2014 Using:  
  Carrying
Amount
  Level 1   Level 2   Level 3   Total  
  (Dollars in Thousands)  

Financial assets:

Cash and due from banks

$ 78,026    $         78,026    $ -    $ -    $ 78,026   

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   
 

 

  Fair Value Measurements at December 31, 2013 Using:  
  Carrying
Amount
  Level 1   Level 2   Level 3   Total  
  (Dollars in Thousands)  

Financial assets:

Cash and due from banks

$ 62,955    $ 62,955    $ -    $ -    $ 62,995   

Federal funds sold and interest-bearing accounts

  204,984          204,984      -      -      204,984   

Loans, net

      2,392,521      -      -          2,404,909          2,404,909   

FDIC loss-share receivable

  65,441      -      -      61,317      61,317   

Accrued interest receivable

  15,071      15,071      -      -      15,071   

Financial liabilities:

Deposits

  2,999,231      -          3,000,061      -      3,000,061   

Securities sold under agreements to repurchase

  83,516      83,516      -      -      83,516   

Other borrowings

  194,572      -      194,572      -      194,572   

Accrued interest payable

  1,431      1,431      -      -      1,431   

Subordinated deferrable interest debentures

  55,466      -      36,277      -      36,277