XML 32 R21.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Fair Value | 6 Months Ended
--- | ---
Jun. 30, 2016
Fair Value [Abstract] |
Fair Value | 13. Fair Value The Financial Accounting Standards Board (“FASB”) defines fair value as the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The FASB’s guidance also established a fair value hierarchy that prioritizes the inputs to these valuation techniques used to measure fair value, giving preference to quoted prices in active markets for identical assets or liabilities (“level 1”) and the lowest priority to unobservable inputs such as a reporting entity’s own data (“level 3”). Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in markets that are not active, observable inputs other than quoted prices, such as interest rates and yield curves, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Fair Value of Assets and Liabilities Measured on a Recurring Basis The following tables present for each of the fair value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis in the consolidated balance sheets. ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | June 30, 2016
﻿(in thousands) |  | Level 1 |  | Level 2 |  | Total
﻿Assets |  |  |  |  |  |  |  |  |
﻿Available for sale debt securities: |  |  |  |  |  |  |  |  |
﻿U.S. Treasury and government agency securities |  | $ | — |  | $ | 116 |  | $ | 116
﻿Municipal obligations |  |  | — |  |  | 156,292 |  |  | 156,292
﻿Corporate debt securities |  |  | — |  |  | 3,500 |  |  | 3,500
﻿Mortgage-backed securities |  |  | — |  |  | 1,906,346 |  |  | 1,906,346
﻿Collateralized mortgage obligations |  |  | — |  |  | 241,346 |  |  | 241,346
﻿Equity securities |  |  | 1,212 |  |  | — |  |  | 1,212
﻿Total available for sale securities |  |  | 1,212 |  |  | 2,307,600 |  |  | 2,308,812
﻿Derivative assets (1) |  |  | — |  |  | 43,903 |  |  | 43,903
﻿Total recurring fair value measurements - assets |  | $ | 1,212 |  | $ | 2,351,503 |  | $ | 2,352,715
﻿Liabilities |  |  |  |  |  |  |  |  |
﻿Derivative liabilities (1) |  | $ | — |  | $ | 43,184 |  | $ | 43,184
﻿Total recurring fair value measurements - liabilities |  | $ | — |  | $ | 43,184 |  | $ | 43,184
﻿
| (1) |  | For further disaggregation of derivative assets and liabilities, see Note 6 - Derivatives.
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | December 31, 2015
﻿(in thousands) |  | Level 1 |  | Level 2 |  | Total
﻿Assets |  |  |  |  |  |  |  |  |
﻿Available for sale debt securities: |  |  |  |  |  |  |  |  |
﻿U.S. Treasury and government agency securities |  | $ | — |  | $ | 134 |  | $ | 134
﻿ Municipal obligations |  |  | — |  |  | 39,607 |  |  | 39,607
﻿Corporate debt securities |  |  | — |  |  | 3,500 |  |  | 3,500
﻿Mortgage-backed securities |  |  | — |  |  | 1,758,373 |  |  | 1,758,373
﻿Collateralized mortgage obligations |  |  | — |  |  | 289,033 |  |  | 289,033
﻿Equity securities |  |  | 2,757 |  |  | — |  |  | 2,757
﻿Total available for sale securities |  |  | 2,757 |  |  | 2,090,647 |  |  | 2,093,404
﻿Derivative assets (1) |  |  | — |  |  | 23,251 |  |  | 23,251
﻿Total recurring fair value measurements - assets |  | $ | 2,757 |  | $ | 2,113,898 |  | $ | 2,116,655
﻿Liabilities |  |  |  |  |  |  |  |  |
﻿Derivative liabilities (1) |  | $ | — |  | $ | 23,968 |  | $ | 23,968
﻿Total recurring fair value measurements - liabilities |  | $ | — |  | $ | 23,968 |  | $ | 23,968
﻿
| (1) |  | For further disaggregation of derivative assets and liabilities, see Note 6 - Derivatives.
﻿ Securities classified as level 1 within the valuation hierarchy include U.S. Treasury securities and certain other debt and equity securities. Level 2 classified securities include obligations of U.S. Government agencies and U.S. Government-sponsored agencies, residential mortgage-backed securities and collateralized mortgage obligations that are issued or guaranteed by U.S. government agencies, and state and municipal bonds. The level 2 fair value measurements for investment securities are obtained quarterly from a third-party pricing service that uses industry-standard pricing models. Substantially all of the model inputs are observable in the marketplace or can be supported by observable data. The Company invests only in securities of investment grade quality with a targeted duration, for the overall portfolio, generally between two and five. Company policies generally limit investments to agency securities and municipal securities determined to be investment grade according to an internally generated score which generally includes a rating of not less than “Baa” or its equivalent by a nationally recognized statistical rating agency. There were no transfers between valuation hierarchy levels during the periods shown. The fair value of derivative financial instruments, which are predominantly customer interest rate swaps, is obtained from a third-party pricing service that uses an industry-standard discounted cash flow model that relies on inputs, LIBOR swap curves and Overnight Index swap rate curves, observable in the marketplace. To comply with the accounting guidance, credit valuation adjustments are incorporated in the fair values to appropriately reflect nonperformance risk for both the Company and the counterparties. Although the Company has determined that the majority of the inputs used to value the derivative instruments fall within level 2 of the fair value hierarchy, the credit value adjustments utilize level 3 inputs, such as estimates of current credit spreads. The Company has determined that the impact of the credit valuation adjustments is not significant to the overall valuation of these derivatives. As a result, the Company has classified its derivative valuations in their entirety in level 2 of the fair value hierarchy. The Company’s policy is to measure counterparty credit risk quarterly for all derivative instruments, including those subject to master netting arrangements consistent with how market participants would price the net risk exposure at the measurement date. The Company also has certain derivative instruments associated with the Bank’s mortgage-banking activities. These derivative instruments include interest rate lock commitments on prospective residential mortgage loans and forward commitments to sell these loans to investors on a best efforts delivery basis. The fair value of these derivative instruments is measured using observable market prices for similar instruments and is classified as a level 2 measurement. Fair Value of Assets Measured on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. Collateral-dependent impaired loans are level 2 assets measured at the fair value of the underlying collateral based on independent third-party appraisals that take into consideration market-based information such as recent sales activity for similar assets in the property’s market. Other real estate owned, including both foreclosed property and surplus banking property, are level 3 assets that are adjusted to fair value, less estimated selling costs, upon transfer to other real estate owned. Subsequently, other real estate owned is carried at the lower of carrying value or fair value less estimated selling costs. Fair values are determined by sales agreement or third-party appraisals as discounted for estimated selling costs, information from comparable sales, and marketability of the property. The fair value information presented below is not as of the period-end, rather it was as of the date the fair value adjustment was recorded during the twelve months for each of the dates presented below, and excludes nonrecurring fair value measurements of assets no longer on the balance sheet. The following tables present the Company’s financial assets that are measured at fair value on a nonrecurring basis for each of the fair value hierarchy levels. ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | June 30, 2016
﻿(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
﻿Collateral-dependent impaired loans |  | $ | — |  | $ | 116,516 |  | $ | — |  | $ | 116,516
﻿Other real estate owned |  |  | — |  |  | — |  |  | 14,053 |  |  | 14,053
﻿Total nonrecurring fair value measurements |  | $ | — |  | $ | 116,516 |  | $ | 14,053 |  | $ | 130,569
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | December 31, 2015
﻿(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
﻿Collateral-dependent impaired loans |  | $ | — |  | $ | 93,602 |  | $ | — |  | $ | 93,602
﻿Other real estate owned |  |  | — |  |  | — |  |  | 17,206 |  |  | 17,206
﻿Total nonrecurring fair value measurements |  | $ | — |  | $ | 93,602 |  | $ | 17,206 |  | $ | 110,808
﻿ Accounting guidance from the FASB requires the disclosure of estimated fair value information about certain on- and off-balance sheet financial instruments, including those financial instruments that are not measured and reported at fair value on a recurring basis. The significant methods and assumptions used by the Company to estimate the fair value of financial i nstruments are discussed below. Cash, Short‑Term Investments and Federal Funds Sold - For these short‑term instruments, the carrying amount is a reasonable estimate of fair value. Securities – The fair value measurement for securities available for sale was discussed earlier in the note. The same measurement techniques were applied to the valuation of securities held to maturity. Loans, Net - The fair value measurement for certain impaired loans was discussed earlier in the note. For the remaining portfolio, fair values were generally determined by discounting scheduled cash flows using discount rates determined with reference to current market rates at which loans with similar terms would be made to borrowers of similar credit quality. Loans Held for Sale – These loans are recorded at fair value and carried at the lower of cost or market. The carrying amount is considered a reasonable estimate of fair value. Deposits - The accounting guidance requires that the fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, interest-bearing checking and savings accounts, be assigned fair values equal to amounts payable upon demand (“carrying amounts”). The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. Securities Sold under Agreements to Repurchase, Federal Funds Purchased, and Federal Home Loan Bank (“FHLB”) Borrowings - For these short-term liabilities, the carrying amount is a reasonable estimate of fair value. Long-Term Debt - The fair value is estimated by discounting the future contractual cash flows using current market rates at which debt with similar terms could be obtained. Derivative Financial Instruments – The fair value measurement for derivative financial instruments was discussed earlier in the note. The following tables present the estimated fair values of the Company’s financial instruments by fair value hierarchy levels and the corresponding carrying amount at June 30, 2016 and December 31, 2015. ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | June 30, 2016
﻿ |  |  |  |  |  |  |  |  |  |  | Total Fair |  | Carrying
﻿(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Value |  | Amount
﻿Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Cash, interest-bearing bank deposits, and federal funds sold |  | $ | 466,587 |  | $ | — |  | $ | — |  | $ | 466,587 |  | $ | 466,587
﻿Available for sale securities |  |  | 1,212 |  |  | 2,307,600 |  |  | — |  |  | 2,308,812 |  |  | 2,308,812
﻿Held to maturity securities |  |  | — |  |  | 2,569,084 |  |  | — |  |  | 2,569,084 |  |  | 2,497,558
﻿Loans, net |  |  | — |  |  | 116,516 |  |  | 16,058,354 |  |  | 16,174,870 |  |  | 15,809,710
﻿Loans held for sale |  |  | — |  |  | 42,297 |  |  | — |  |  | 42,297 |  |  | 42,297
﻿Derivative financial instruments |  |  | — |  |  | 43,903 |  |  | — |  |  | 43,903 |  |  | 43,903
﻿Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Deposits |  | $ | — |  | $ | — |  | $ | 18,837,146 |  | $ | 18,837,146 |  | $ | 18,816,869
﻿Federal funds purchased |  |  | 10,575 |  |  | — |  |  | — |  |  | 10,575 |  |  | 10,575
﻿Securities sold under agreements to repurchase |  |  | 409,532 |  |  | — |  |  | — |  |  | 409,532 |  |  | 409,532
﻿FHLB borrowings |  |  | 675,000 |  |  | — |  |  | — |  |  | 675,000 |  |  | 675,000
﻿Long-term debt |  |  | — |  |  | 474,888 |  |  | — |  |  | 474,888 |  |  | 468,028
﻿Derivative financial instruments |  |  | — |  |  | 43,184 |  |  | — |  |  | 43,184 |  |  | 43,184
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | December 31, 2015
﻿ |  |  |  |  |  |  |  |  |  |  | Total Fair |  | Carrying
﻿(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Value |  | Amount
﻿Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Cash, interest-bearing bank deposits, and federal funds sold |  | $ | 869,429 |  | $ | — |  | $ | — |  | $ | 869,429 |  | $ | 869,429
﻿Available for sale securities |  |  | 2,757 |  |  | 2,090,647 |  |  | — |  |  | 2,093,404 |  |  | 2,093,404
﻿Held to maturity securities |  |  | — |  |  | 2,375,851 |  |  | — |  |  | 2,375,851 |  |  | 2,370,388
﻿Loans, net |  |  | — |  |  | 93,602 |  |  | 15,334,201 |  |  | 15,427,803 |  |  | 15,522,135
﻿Loans held for sale |  |  | — |  |  | 20,434 |  |  | — |  |  | 20,434 |  |  | 20,434
﻿Derivative financial instruments |  |  | — |  |  | 23,251 |  |  | — |  |  | 23,251 |  |  | 23,251
﻿Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Deposits |  | $ | — |  | $ | — |  | $ | 18,327,425 |  | $ | 18,327,425 |  | $ | 18,348,912
﻿Federal funds purchased |  |  | 10,100 |  |  | — |  |  | — |  |  | 10,100 |  |  | 10,100
﻿Securities sold under agreements to repurchase |  |  | 513,544 |  |  | — |  |  | — |  |  | 513,544 |  |  | 513,544
﻿FHLB borrowings |  |  | 900,000 |  |  | — |  |  | — |  |  | 900,000 |  |  | 900,000
﻿Long-term debt |  |  | — |  |  | 488,711 |  |  | — |  |  | 488,711 |  |  | 490,145
﻿Derivative financial instruments |  |  | — |  |  | 23,968 |  |  | — |  |  | 23,968 |  |  | 23,968
﻿

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration