XML 54 R34.htm IDEA: XBRL DOCUMENT

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Assets and liabilities measured at fair value on a recurring 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)
	September 30, 2020
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	2,612	$	2,612	$	—	$	—
Equity securities	21,119		21,119		—		—
Securities available for sale
U.S. government agency securities	24,273		—		24,273		—
Agency mortgage-backed securities	230,620		—		230,620		—
Agency collateralized mortgage obligations	102,077		—		102,077		—

State, county, and municipal securities	1,145		—		1,145		—
Single issuer trust preferred securities issued by banks and insurers	469		—		469		—
Pooled trust preferred securities issued by banks and insurers	1,021		—		—		1,021
Small business administration pooled securities	63,873		—		63,873		—
Loans held for sale	54,713		—		54,713		—
Derivative instruments	210,742		—		210,742		—
Liabilities
Derivative instruments	151,613		—		151,613		—
Total recurring fair value measurements	$	561,051	$	23,731	$	536,299	$	1,021

Nonrecurring fair value measurements
Assets
Individually assessed collateral dependent loans	$	56,660	$	—	$	—	$	56,660

Total nonrecurring fair value measurements	$	56,660	$	—	$	—	$	56,660


			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, 2019
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	2,179	$	2,179	$	—	$	—
Equity securities	21,261		21,261		—		—
Securities available for sale
U.S. government agency securities	33,115		—		33,115		—
Agency mortgage-backed securities	247,000		—		247,000		—
Agency collateralized mortgage obligations	88,511		—		88,511		—

State, county, and municipal securities	1,396		—		1,396		—
Single issuer trust preferred securities issued by banks and insurers	493		—		493		—
Pooled trust preferred securities issued by banks and insurers	1,114		—		—		1,114
Small business administration pooled securities	54,795		—		54,795		—
Loans held for sale	33,307		—		33,307		—
Derivative instruments	78,385		—		78,385		—
Liabilities
Derivative instruments	53,923		—		53,923		—
Total recurring fair value measurements	$	507,633	$	23,440	$	483,079	$	1,114

Nonrecurring fair value measurements:
Assets
Collateral dependent impaired loans	$	25,515	$	—	$	—	$	25,515

Total nonrecurring fair value measurements	$	25,515	$	—	$	—	$	25,515

Reconciliation for all assets and liabilities measured at fair value on a recurring basis

The table below presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which were valued using pricing models and discounted cash flow methodologies, for the periods indicated:


	Three Months Ended
	September 30
	2020		2019
	(Dollars in thousands)
Pooled Trust Preferred Securities
Beginning balance	$	986	$	1,281
Gain and (losses) (realized/unrealized)

Included in other comprehensive income	41		(14)



Settlements	(6)		(161)

Ending balance	$	1,021	$	1,106

	Nine Months Ended
	September 30
	2020		2019
	(Dollars in thousands)
Pooled Trust Preferred Securities
Beginning balance	$	1,114	$	1,329
Losses (realized/unrealized)

Included in other comprehensive income	(38)		(38)



Settlements	(55)		(185)

Ending balance	$	1,021	$	1,106

Investments in securities that are classified as level 3

The following table sets forth certain unobservable inputs regarding the Company’s financial instruments that are classified as Level 3 as of the dates indicated:


	September 30 2020		December 31 2019			September 30 2020	December 31 2019	September 30 2020	December 31 2019
Valuation Technique	Fair Value				Unobservable Inputs	Range		Weighted Average
	(Dollars in thousands)
Discounted cash flow methodology
Pooled trust preferred securities	$	1,021	$	1,114	Cumulative prepayment	0% - 56%	0% - 57%	2.6%	2.6%
					Cumulative default	4% - 100%	2% - 100%	11.9%	13.5%
					Loss given default	85% - 100%	85% - 100%	94.0%	93.6%
					Cure given default	0% - 75%	0% - 75%	60.9%	60.9%
Appraisals of collateral(1)
Individually assessed collateral dependent loans	$	56,660	n/a
Collateral dependent impaired loans	n/a		$	25,515

(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.

The estimated fair values and related carrying amounts for assets and liabilities

The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates 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)
	September 30, 2020
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)

U.S. Treasury securities	$	4,021	$	4,100	$	—	$	4,100	$	—
Agency mortgage-backed securities	388,106		407,793		—		407,793		—
Agency collateralized mortgage obligations	237,380		246,937		—		246,937		—

Single issuer trust preferred securities issued by banks	1,500		1,498		—		1,498		—
Small business administration pooled securities	28,566		30,139		—		30,139		—

Loans, net of allowance for credit losses(b)	9,232,908		9,185,023		—		—		9,185,023
Federal Home Loan Bank stock(c)	15,090		15,090		—		15,090		—
Cash surrender value of life insurance policies(d)	199,453		199,453		—		199,453		—
Financial liabilities
Deposit liabilities, other than time deposits(e)	$	9,792,667	$	9,792,667	$	—	$	9,792,667	$	—
Time certificates of deposits(f)	1,058,641		1,065,818		—		1,065,818		—
Federal Home Loan Bank borrowings(f)	145,765		145,975		—		145,975		—



Long-term borrowings(f)	37,447		36,448		—		36,448		—
Junior subordinated debentures(g)	62,850		67,883		—		67,883		—
Subordinated debentures(f)	49,672		47,173		—		—		47,173


					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, 2019
	(Dollars in thousands)
Financial assets
Securities held to maturity(a)
U.S. government agency securities	$	12,874	$	12,997	$	—	$	12,997	$	—
U.S. Treasury securities	4,032		4,053		$	—	4,053		—
Agency mortgage-backed securities	397,414		405,802		—		405,802		—
Agency collateralized mortgage obligations	293,662		297,314		—		297,314		—

Single issuer trust preferred securities issued by banks	1,500		1,490		—		1,490		—
Small business administration pooled securities	31,324		31,607		—		31,607		—

Loans, net of allowance for credit losses(b)	8,780,384		8,613,635		—		—		8,613,635
Federal Home Loan Bank stock(c)	14,424		14,424		—		14,424		—
Cash surrender value of life insurance policies(d)	197,372		197,372		—		197,372		—
Financial liabilities
Deposit liabilities, other than time deposits(e)	$	7,752,052	$	7,752,052	$	—	$	7,752,052	$	—
Time certificates of deposits(f)	1,395,315		1,396,760		—		1,396,760		—
Federal Home Loan Bank borrowings(f)	115,748		115,881		—		115,881		—
Long-term borrowings (f)	74,906		72,219		—		72,219		—


Junior subordinated debentures(g)	62,848		65,603		—		65,603		—
Subordinated debentures(f)	49,601		52,870		—		—		52,870

(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 of loans is measured using the exit price valuation method, determined primarily 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, while incorporating liquidity and credit assumptions. Additionally, this amount excludes individually assessed collateral dependent loans, which are deemed to be marked to fair value on a nonrecurring basis.

(c)Federal Home Loan Bank 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 policies 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.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details