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Federally Assisted Transactions | 9 Months Ended
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Sep. 30, 2011
Business Combinations [Abstract] |
Federally Assisted Transactions | Federally Assisted Transactions On January 21, 2011, FCB entered into an agreement with the FDIC, as Receiver, to purchase substantially all the assets and assume the majority of the liabilities of United Western at a discount of $213,000 with no deposit premium. United Western operated in Denver, Colorado, with eight branch locations in Boulder, Centennial, Cherry Creek, downtown Denver, Hampden at Interstate 25, Fort Collins, Longmont and Loveland. The Purchase and Assumption Agreement with the FDIC includes loss share agreements on the covered loans and other real estate purchased by FCB which provides protection against losses to FCB. The loans and OREO purchased in the United Western transaction are covered by two loss share agreements between the FDIC and FCB (one for single family residential mortgage (SFR) loans and the other for all other loans and OREO excluding consumer loans). Under the loss share agreement for single family residential mortgage loans (SFRs), the FDIC will cover 80 percent of covered loan losses up to $32,489; 0 percent from $32,489 up to $57,653 and 80 percent of losses in excess of $57,653. The loss share agreement for all other non-consumer loans and OREO will cover 80 percent of covered loan and OREO losses up to $111,517; 30 percent of losses from $111,517 to $227,032; and 80 percent of losses in excess of $227,032. Consumer loans are not covered under the FDIC loss share agreements. The SFR loss share agreement covers losses recorded during the ten years following the date of the transaction, while the term for the loss share agreement covering all other covered loans and OREO is five years. The SFR loss share agreement also covers recoveries received for ten years following the date of the transaction, while recoveries of all other covered loans and OREO will be shared with the FDIC for a five-year period. The losses reimbursable by the FDIC are based on the book value of the relevant loan as determined by the FDIC at the date of the transaction. New loans made after that date are not covered by the loss share agreements. The loss share agreements include a true-up payment in the event FCB’s losses do not reach the Total Intrinsic Loss Estimate of $294,000. On March 17, 2021, the true-up measurement date, FCB is required to make a true-up payment to the FDIC equal to 50 percent of the excess, if any, of the following calculation: A-(B+C+D), where (A) equals 20 percent of the Total Intrinsic Loss Estimate, or $58,800; (B) equals 20 percent of the Net Loss Amount; (C) equals 25 percent of the asset (discount) bid, or ($52,898); and (D) equals 3.5 percent of total Shared Loss Assets at Bank Closing, or $37,936. Current loss estimates suggest that a true-up payment of $11,827 will be paid to the FDIC during 2021. The FDIC-assisted acquisition of United Western was accounted for under the acquisition method of accounting. The statement of net assets acquired, adjustments to the acquisition date fair values made in the second and third quarters and the resulting acquisition gain is presented in the following table. As indicated in the explanatory notes that accompany the following table, the purchased assets, assumed liabilities and identifiable intangible assets were recorded at their respective acquisition date estimated fair values. Fair values are subject to refinement for up to one year after the closing date of the transaction as additional information regarding closing date fair values becomes available. During this one year period, the cause of any change in cash flow estimates is considered to determine whether the change results from circumstances that existed as of the acquisition date or if the change results from an event that occurred after the acquisition. Adjustments to the estimated fair values made in the second and third quarters reduced the gain by $2,034 and were based on additional information regarding the acquisition date fair values, which included updated appraisals on properties that either secure an acquired loan or are in OREO. The FDIC also repurchased 18 loans that were included in the original acquisition but which FCB had requested be excluded from the portfolio of acquired loans due to cross collateralization with other loans retained by the FDIC. First quarter 2011 noninterest income includes an acquisition gain of $63,474 that resulted from the United Western FDIC-assisted acquisition. The gain resulted from the difference between the estimated fair value of acquired assets and assumed liabilities. During the second and third quarter of 2011, adjustments were made to the gain based on additional information regarding the acquisition date fair values. These second and third quarter adjustments were made retroactive to the first quarter of 2011, resulting in the adjusted gain of $63,474. FCB recorded a deferred tax liability for the gain of $24,856 resulting from differences between the financial statement and tax bases of assets acquired and liabilities assumed in this transaction. To the extent there are additional adjustments to the acquisition date fair values for up to one year following the acquisition, there will be additional adjustments to the gain.
| January 21, 2011
| As recorded by United Western |  | Fair value adjustments at date of acquisition |  | Subsequent acquisition-date adjustments |  | As recorded by FCB
Assets |  |  |  |  |  |  |
Cash and due from banks | $ | 420,902 |  |  | $ | — |  |  | $ | — |  |  | $ | 420,902 |
Investment securities available for sale | 281,862 |  |  | — |  |  | — |  |  | 281,862 |
Loans covered by loss share agreements (1) | 1,034,074 |  |  | (278,913 | ) | a | 4,190 |  | i | 759,351 |
Other real estate owned covered by loss share agreements | 37,812 |  |  | (10,252 | ) | b | (1,469 | ) | i | 26,091 |
Income earned not collected | 5,275 |  |  | — |  |  | — |  |  | 5,275 |
Receivable from FDIC for loss share agreements | — |  |  | 140,285 |  | c | (2,832 | ) | i | 137,453 |
FHLB stock | 22,783 |  |  | — |  |  | — |  |  | 22,783 |
Mortgage servicing rights | 4,925 |  |  | (1,489 | ) | d | — |  |  | 3,436 |
Core deposit intangible | — |  |  | 537 |  | e | — |  |  | 537 |
Other assets | 15,421 |  |  | 109 |  | f | (991 | ) | i | 14,539 |
Total assets acquired | $ | 1,823,054 |  |  | $ | (149,723 | ) |  | $ | (1,102 | ) |  | $ | 1,672,229 |
Liabilities |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |
Noninterest-bearing | $ | 101,875 |  |  | $ | — |  |  | $ | — |  |  | $ | 101,875 |
Interest-bearing | 1,502,983 |  |  | — |  |  | — |  |  | 1,502,983 |
Total deposits | 1,604,858 |  |  | — |  |  | — |  |  | 1,604,858 |
Short-term borrowings | 336,853 |  |  | — |  |  | — |  |  | 336,853 |
Long-term obligations | 206,838 |  |  | 789 |  | g | — |  |  | 207,627 |
Deferred tax liability | 1,351 |  |  | (565 | ) | h | — |  |  | 786 |
Other liabilities | 11,772 |  |  | — |  |  | — |  |  | 11,772 |
Total liabilities assumed | 2,161,672 |  |  | 224 |  |  | — |  |  | 2,161,896 |
Excess (shortfall) of assets acquired over liabilities assumed | $ | (338,618 | ) |  |  |  |  |  |
Aggregate fair value adjustments |  |  | $ | (149,947 | ) |  | $ | (1,102 | ) |  |
Cash received from the FDIC (2) |  |  |  |  |  |  | $ | 553,141 |
Gain on acquisition of United Western |  |  |  |  |  |  | $ | 63,474 |
(1) | Excludes $11,998 in loans repurchased by FDIC during the second quarter of 2011
(2) | Cash received includes cash received from loans repurchased by the FDIC during the second quarter of 2011
Explanation of fair value adjustments a - Adjustment reflects the fair value adjustments based on FCB’s evaluation of the acquired loan portfolio. b - Adjustment reflects the estimated OREO losses based on FCB’s evaluation of the acquired OREO. c - Adjustment reflects the estimated fair value of payments FCB will receive from the FDIC under the loss share agreements. d - Adjustment reflects the fair value adjustment based on evaluation of mortgage servicing rights. e - Adjustment reflects the estimated fair value of intangible assets, which includes core deposit intangibles. f - Adjustment reflects amount needed to adjust the carrying value of other assets to estimated fair value. g - Adjustment reflects the amount of the prepayment penalty assessed on early payoff of long-term obligations. h - Adjustment reflects the fair value adjustment on FCB’s evaluation of the deferred tax liability assumed in the transaction. i - Adjustment to acquisition date fair value based on additional information received post-acquisition regarding acquisition date fair value and adjustments resulting from loans repurchased by the FDIC. On July 8, 2011, FCB entered into an agreement with the FDIC to purchase substantially all the assets and assume the majority of the liabilities of CCB of Castle Rock, Colorado at a discount of $154,900, with no deposit premium. CCB operated in Castle Rock, Colorado, and in six branch locations in Boulder, Castle Pines, Cherry Creek, Colorado Springs, Edwards, and Parker. The Purchase and Assumption Agreement with the FDIC includes loss share agreements on the loans and OREO purchased by FCB which provide protection against losses to FCB. The loans and OREO purchased in the CCB transaction are covered by two loss share agreements between the FDIC and FCB (one for SFR loans and the other for all other loans and OREO excluding consumer loans and CD secured loans), which afford FCB significant loss protection. Under the loss share agreements, the FDIC will cover 80 percent of combined covered losses up to $230,991; 0 percent from $230,991 up to $285,947; and 80 percent of losses in excess of $285,947. The SFR loss share agreement covers losses recorded during the ten years following the date of the transaction, while the term for the loss share agreement covering all other covered loans and OREO is five years. The SFR loss share agreement also covers recoveries received for ten years following the date of the transaction, while recoveries of all other covered loans and OREO will be shared with the FDIC for a five-year period. The losses reimbursable by the FDIC are based on the book value of the relevant loan as determined by the FDIC at the date of the transaction. New loans made after that date are not covered by the loss share agreements. The loss share agreements include a true-up payment in the event FCB’s losses do not reach the Total Intrinsic Loss Estimate of $285,708. On August 22, 2021, the true-up measurement date, FCB is required to make a true-up payment to the FDIC equal to 50 percent of the excess, if any, of the following calculation: A-(B+C+D), where (A) equals 20 percent of the Total Intrinsic Loss Estimate, or $57,142; (B) equals 20 percent of the Net Loss Amount; (C) equals 25 percent of the asset (discount) bid, or ($38,725); and (D) equals 3.5 percent of total Shared Loss Assets at Bank Closing, or $19,295. Current loss estimates suggest that a true-up payment of $16,349 will be paid to the FDIC during 2021. The FDIC-assisted acquisition of CCB was accounted for under the acquisition method of accounting. The statement of net assets acquired, fair value adjustments and the resulting acquisition gain is presented in the following table. As indicated in the explanatory notes that accompany the following table, the purchased assets, assumed liabilities and identifiable intangible assets were recorded at their respective acquisition date estimated fair values. Fair values are subject to refinement for up to one year after the closing date of the transaction as additional information regarding closing date fair values becomes available. During this one year period, the cause of any change in cash flow estimates is considered to determine whether the change results from circumstances that existed as of the acquisition date or if the change results from an event that occurred after the acquisition. Third quarter 2011 noninterest income includes an acquisition gain of $87,788 that resulted from the CCB FDIC-assisted acquisition. The gain resulted from the difference between the estimated fair value of acquired assets and assumed liabilities. FCB recorded a deferred tax liability for the gain of $34,377 resulting from differences between the financial statement and tax bases of assets acquired and liabilities assumed in this transaction. To the extent there are additional adjustments to the acquisition date fair values for up to one year following the acquisition, there will be adjustments to the gain.
| July 8, 2011
| As recorded by CCB |  | Fair value adjustments at date of acquisition |  | As recorded by FCB
Assets |  |  |  |  |
Cash and due from banks | $ | 74,736 |  |  | $ | — |  |  | $ | 74,736 |
Investment securities available for sale | 40,187 |  |  | — |  |  | 40,187 |
Loans covered by loss share agreements | 538,369 |  |  | (216,207 | ) | a | 322,162 |
Other real estate owned covered by loss share agreements | 14,853 |  |  | (7,699 | ) | b | 7,154 |
Income earned not collected | 1,720 |  |  | — |  |  | 1,720 |
Receivable from FDIC for loss share agreements | — |  |  | 157,600 |  | c | 157,600 |
Core deposit intangible | — |  |  | 984 |  | d | 984 |
Other assets | 3,296 |  |  | — |  |  | 3,296 |
Total assets acquired | $ | 673,161 |  |  | $ | (65,322 | ) |  | $ | 607,839 |
Liabilities |  |  |  |  |
Deposits: |  |  |  |  |
Noninterest-bearing | $ | 35,862 |  |  | $ | — |  |  | $ | 35,862 |
Interest-bearing | 571,251 |  |  | (612 | ) | e | 570,639 |
Total deposits | 607,113 |  |  | (612 | ) |  | 606,501 |
Short-term borrowings | 15,008 |  |  | 204 |  | f | 15,212 |
Other liabilities | 438 |  |  | — |  |  | 438 |
Total liabilities assumed | 622,559 |  |  | (408 | ) |  | 622,151 |
Excess (shortfall) of assets acquired over liabilities assumed | $ | 50,602 |  |  |  |  |
Aggregate fair value adjustments |  |  | $ | (64,914 | ) |  |
Cash received from the FDIC |  |  |  |  | $ | 102,100 |
Gain on acquisition of CCB |  |  |  |  | $ | 87,788 |
Explanation of fair value adjustments a - Adjustment reflects the fair value adjustments based on FCB’s evaluation of the acquired loan portfolio. b - Adjustment reflects the estimated OREO losses based on FCB’s evaluation of the acquired OREO. c - Adjustment reflects the estimated fair value of payments FCB will receive from the FDIC under the loss share agreements. d - Adjustment reflects the estimated value of intangible assets, which includes core deposit intangibles. e - Adjustment reflects the fair value of deposits assumed based on FCB's evaluation of the term deposits assumed. f - Adjustment reflects the amount of the prepayment penalty assessed on early payoff of long-term obligations. Results of operations for United Western and CCB prior to their respective acquisition dates are not included in the income statement. Due to the significant amount of fair value adjustments, the resulting accretion of those fair value adjustments and the protection resulting from the FDIC loss share agreements, historical results of United Western and CCB are not relevant to BancShares’ results of operations. Therefore, no pro forma information is presented.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51, 52 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1500-128463 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e7000-128479 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6927-128479 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e7008-128479 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1490-128463 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6996-128479 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Appendix F -Paragraph F4 -Subparagraph e Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1383-128463 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1392-128463 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1497-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph 67-73 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1524-128463 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 88-16 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6909870&loc=d3e1486-128463 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472 + Details
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