XML 72 R47.htm IDEA: XBRL DOCUMENT v3.10.0.1
FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows as of the dates indicated:
 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)        
 
Significant Other
Observable
Inputs
(Level 2)        
 
Significant
Unobservable
Inputs
(Level 3)
 
December 31, 2018
 
(Dollars in thousands)
Recurring fair value measurements
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Trading securities
$
1,504

 
$
1,504

 
$

 
$

Equity securities
19,477

 
19,477

 

 

Securities available for sale
 
 
 
 
 
 
 
U.S. Government agency securities
32,038

 

 
32,038

 

Agency mortgage-backed securities
220,105

 

 
220,105

 

Agency collateralized mortgage obligations
134,911

 

 
134,911

 

State, county, and municipal securities
1,735

 

 
1,735

 

Single issuer trust preferred securities issued by banks and insurers
707

 

 
707

 

Pooled trust preferred securities issued by banks and insurers
1,329

 

 

 
1,329

Small business administration pooled securities
51,927

 

 
51,927

 

Loans held for sale
6,431

 

 
6,431

 

Derivative instruments
26,310

 

 
26,310

 

Liabilities
 
 
 
 
 
 
 
Derivative instruments
17,523

 

 
17,523

 

Total recurring fair value measurements
$
478,951

 
$
20,981

 
$
456,641

 
$
1,329

 
 
 
 
 
 
 
 
Nonrecurring fair value measurements
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Collateral dependent impaired loans
$
29,109

 
$

 
$

 
$
29,109

Total nonrecurring fair value measurements
$
29,109

 
$

 
$

 
$
29,109


 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)        
 
Significant Other
Observable
Inputs
(Level 2)        
 
Significant
Unobservable
Inputs
(Level 3)
 
December 31, 2017
 
(Dollars in thousands)
Recurring fair value measurements
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Trading securities
$
1,324

 
$
1,324

 
$

 
$

Securities available for sale
 
 
 
 
 
 
 
U.S. Government agency securities
35,430

 
$

 
35,430

 

Agency mortgage-backed securities
215,764

 

 
215,764

 

Agency collateralized mortgage obligations
122,012

 

 
122,012

 

State, county, and municipal securities
2,274

 

 
2,274

 

Single issuer trust preferred securities issued by banks and insurers
2,016

 

 
2,016

 

Pooled trust preferred securities issued by banks and insurers
1,640

 

 

 
1,640

Small business administration pooled securities
47,778

 

 
47,778

 

Equity securities
20,584

 
20,584

 

 

Loans held for sale
4,768

 

 
4,768

 

Derivative instruments
17,476

 

 
17,476

 

Liabilities
 
 
 
 
 
 
 
Derivative instruments
15,693

 

 
15,693

 

Total recurring fair value measurements
$
455,373

 
$
21,908

 
$
431,825

 
$
1,640

 
 
 
 
 
 
 
 
Nonrecurring fair value measurements:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Collateral dependent impaired loans
$
33,567

 
$

 
$

 
$
33,567

Other real estate owned and other foreclosed assets
612

 

 

 
612

Total nonrecurring fair value measurements
$
34,179

 
$

 
$

 
$
34,179


Reconciliation of Assets on Recurring Basis Using Significant Unobservable Inputs All assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were valued using pricing models and discounted cash flow methodologies, as of December 31, 2018, 2017 and 2016. This reconciliation is presented in the table below, for the periods indicated:
 
 
2018
 
2017
 
2016
 
 
(Dollars in thousands)
Pooled Trust Preferred Securities
 
 
 
 
 
 
Beginning balance
 
$
1,640

 
$
1,584

 
$
1,572

Gain and (losses) (realized/unrealized)
 
 
 
 
 
 
Included in earnings
 

 

 

Included in other comprehensive income
 
191

 
77

 
29

Settlements
 
(502
)
 
(21
)
 
(17
)
Ending Balance
 
$
1,329

 
$
1,640

 
$
1,584

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] The following table sets forth certain unobservable inputs regarding the Company's financial instruments that are classified as Level 3 as of December 31st for the years indicated:
Valuation Technique
 
Fair Value
 
Unobservable Inputs
 
Range
 
Weighted Average
 
 
2018
 
2017
 
 
 
2018
 
2017
 
2018
 
2017
 
 
(Dollars in thousands)
 
 
Discounted cash flow methodology
 
 
 
 
 
 
 
 
 
 
Pooled trust preferred securities
 
$
1,329

 
$
1,640

 
Cumulative prepayment
 
0% - 59%
 
0% - 61%
 
2.1%
 
2.5%
 
 
 
 
 
 
Cumulative default
 
5% - 100%
 
5% - 100%
 
16.2%
 
12.4%
 
 
 
 
 
 
Loss given default
 
85% - 100%
 
85% - 100%
 
94.8%
 
94.3%
 
 
 
 
 
 
Cure given default
 
0% - 75%
 
0% - 75%
 
60.9%
 
60.9%
Appraisals of collateral (1)
 
 
 
 
 
 
 
 
 
Collateral dependent impaired loans
 
$
29,109

 
$
33,567

 
 
 
 
 
 
 
 
 
 
Other real estate owned and foreclosed assets
 
$

 
$
612

 
 
 
 
 
 
 
 
 
 
(1)
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.
Schedule of Fair Values and Related Carrying Amounts by Balance Sheet Grouping he estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated:
 
 
 
Fair Value Measurements at Reporting Date Using
 
Carrying Value
 
Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
December 31, 2018
 
(Dollars in thousands)
Financial assets
 
 
 
Securities held to maturity(a)
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
1,004

 
$
1,015

 
$

 
$
1,015

 
$

Agency mortgage-backed securities
252,484

 
250,928

 

 
250,928

 

Agency collateralized mortgage obligations
332,775

 
326,724

 

 
326,724

 

Single issuer trust preferred securities issued by banks
1,500

 
1,490

 

 
1,490

 

Small business administration pooled securities
23,727

 
23,483

 

 
23,483

 

Loans, net of allowance for loan losses(b)
6,812,792

 
6,635,209

 

 

 
6,635,209

Federal Home Loan Bank stock(c)
15,683

 
15,683

 

 
15,683

 

Cash surrender value of life insurance policies(d)
160,456

 
160,456

 

 
160,456

 

Financial liabilities
 
 
 
 
 
 
 
 
 
Deposit liabilities, other than time deposits(e)
$
6,716,017

 
$
6,716,017

 
$

 
$
6,716,017

 
$

Time certificates of deposits(f)
711,103

 
703,728

 

 
703,728

 
$

Federal Home Loan Bank borrowings(f)
147,806

 
147,603

 

 
147,603

 

Junior subordinated debentures(g)
76,173

 
73,827

 

 
73,827

 

Subordinated debentures(f)
34,728

 
32,509

 

 

 
32,509

 
 
 
 
Fair Value Measurements at Reporting Date Using
 
Carrying Value
 
Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
December 31, 2017
Financial assets
(Dollars in thousands)
Securities held to maturity(a)
 
 


 
 
 
 
 
 
U.S. Treasury securities
$
1,006

 
$
1,035

 
$

 
$
1,035

 
$

Agency mortgage-backed securities
204,768

 
205,823

 

 
205,823

 

Agency collateralized mortgage obligations
262,998

 
258,408

 

 
258,408

 

Single issuer trust preferred securities issued by banks
1,500

 
1,529

 

 
1,529

 

Small business administration pooled securities
27,416

 
27,399

 

 
27,399

 

Loans, net of allowance for loan losses(b)
6,261,343

 
6,116,051

 

 

 
6,116,051

Federal Home Loan Bank stock(c)
11,597

 
11,597

 

 
11,597

 

Cash surrender value of life insurance policies(d)
151,528

 
151,528

 

 
151,528

 

Financial liabilities
 
 
 
 
 
 
 
 
 
Deposit liabilities, other than time deposits(e)
$
6,084,952

 
$
6,084,952

 
$

 
$
6,084,952

 
$

Time certificates of deposits(f)
644,301

 
639,060

 

 
639,060

 

Federal Home Loan Bank borrowings(f)
53,264

 
52,111

 

 
52,111

 

Customer repurchase agreements and other short-term borrowings(f)
162,679

 
162,679

 

 

 
162,679

Junior subordinated debentures(g)
73,073

 
74,680

 

 
74,680

 

Subordinated debentures(f)
34,682

 
32,707

 

 

 
32,707

(a)
The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis.
(b)
Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows. Additionally, this amount excludes collateral dependent impaired loans, which are deemed to be marked to fair value on a nonrecurring basis.
(c)
FHLB stock has no quoted market value and is carried at cost, therefore the carrying amount approximates fair value.
(d)
Cash surrender value of life insurance is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore carrying amount approximates fair value.
(e)
Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date.
(f)
Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.
(g)
Fair value was determined based upon market prices of securities with similar terms and maturities.