XML 50 R31.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Fair Value Measurements (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2018
Fair Value Disclosures [Abstract] |
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, 2018
| (Dollars in thousands)
Recurring fair value measurements |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Trading securities | $ | 1,581 |  |  | $ | 1,581 |  |  | $ | — |  |  | $ | — |
Equity securities | 20,430 |  |  | 20,430 |  |  | — |  |  | — |
Securities available for sale |  |  |  |  |  |  |
U.S. Government agency securities | 31,572 |  |  | — |  |  | 31,572 |  |  | — |
Agency mortgage-backed securities | 207,523 |  |  | — |  |  | 207,523 |  |  | — |
Agency collateralized mortgage obligations | 137,645 |  |  | — |  |  | 137,645 |  |  | — |
State, county, and municipal securities | 1,981 |  |  | — |  |  | 1,981 |  |  | — |
Single issuer trust preferred securities issued by banks and insurers | 1,004 |  |  | — |  |  | 1,004 |  |  | — |
Pooled trust preferred securities issued by banks and insurers | 1,800 |  |  | — |  |  | — |  |  | 1,800 |
Small business administration pooled securities | 54,336 |  |  | — |  |  | 54,336 |  |  | — |
Loans held for sale | 10,431 |  |  | — |  |  | 10,431 |  |  | — |
Derivative instruments | 30,001 |  |  | — |  |  | 30,001 |  |  | — |
Liabilities |  |  |  |  |  |  |
Derivative instruments | 28,446 |  |  | — |  |  | 28,446 |  |  | — |
Total recurring fair value measurements | $ | 469,858 |  |  | $ | 22,011 |  |  | $ | 446,047 |  |  | $ | 1,800 |
Nonrecurring fair value measurements |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Collateral dependent impaired loans | $ | 32,009 |  |  | $ | — |  |  | $ | — |  |  | $ | 32,009 |
Other real estate owned and other foreclosed assets | 190 |  |  | — |  |  | — |  |  | 190 |
Total nonrecurring fair value measurements | $ | 32,199 |  |  | $ | — |  |  | $ | — |  |  | $ | 32,199 |
|  |  | 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 |  |  | $ | — |  |  | $ | — |
Equity securities | 20,584 |  |  | 20,584 |  |  | — |  |  | — |
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 |  |  | — |
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 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, as of the dates indicated:
| Three Months Ended
| September 30
| 2018 |  | 2017
| (Dollars in thousands)
Pooled Trust Preferred Securities |  |  |
Beginning balance | $ | 1,751 |  |  | $ | 1,593 |
Gains and (losses) (realized/unrealized) |  |  |
Included in other comprehensive income | 55 |  |  | 51 |
Settlements | (6 | ) |  | (20 | )
Ending balance | $ | 1,800 |  |  | $ | 1,624 |
| Nine Months Ended
| September 30
| 2018 |  | 2017
| (Dollars in thousands)
Pooled Trust Preferred Securities |  |  |
Beginning balance | $ | 1,640 |  |  | $ | 1,584 |
Gains and (losses) (realized/unrealized) |  |  |
Included in other comprehensive income | 180 |  |  | 58 |
Settlements | (20 | ) |  | (18 | )
Ending balance | $ | 1,800 |  |  | $ | 1,624 |
Investments in securities that are classified as level 3 | The following table sets forth certain unobservable inputs regarding the Company’s investment in securities that are classified as Level 3 for the periods indicated:
|  | September 30 2018 |  | December 31 2017 |  |  |  | September 30 2018 |  | December 31 2017 |  | September 30 2018 |  | December 31 2017
Valuation Technique |  | Fair Value |  | Unobservable Inputs |  | Range |  | Weighted Average
|  | (Dollars in thousands) |  |
Discounted cash flow methodology |  |  |  |  |  |  |  |  |  |
Pooled trust preferred securities |  | $ | 1,800 |  |  | $ | 1,640 |  |  | Cumulative prepayment |  | 0% - 59% |  | 0% - 61% |  | 2.4% |  | 2.5%
|  |  |  |  |  | Cumulative default |  | 5% - 100% |  | 5% - 100% |  | 13.5% |  | 12.4%
|  |  |  |  |  | Loss given default |  | 85% - 100% |  | 85% - 100% |  | 94.4% |  | 94.3%
|  |  |  |  |  | Cure given default |  | 0% - 75% |  | 0% - 75% |  | 60.9% |  | 60.9%
Appraisals of collateral(1) |  |  |  |  |  |  |  |  |  |
Collateral dependent impaired loans |  | $ | 32,009 |  |  | $ | 33,567 |  |  |  |  |  |  |  |  |  |  |
Other real estate owned and foreclosed assets |  | $ | 190 |  |  | $ | 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.
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 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)
| September 30, 2018
| (Dollars in thousands)
Financial assets |  |  |
Securities held to maturity(a) |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 1,004 |  |  | $ | 1,006 |  |  | $ | — |  |  | $ | 1,006 |  |  | $ | — |
Agency mortgage-backed securities | 189,479 |  |  | 184,088 |  |  | — |  |  | 184,088 |  |  | — |
Agency collateralized mortgage obligations | 336,346 |  |  | 323,516 |  |  | — |  |  | 323,516 |  |  | — |
Single issuer trust preferred securities issued by banks | 1,500 |  |  | 1,490 |  |  | — |  |  | 1,490 |  |  | — |
Small business administration pooled securities | 25,376 |  |  | 24,522 |  |  | — |  |  | 24,522 |  |  | — |
Loans, net of allowance for loan losses(b) | 6,432,158 |  |  | 6,229,090 |  |  | — |  |  | — |  |  | 6,229,090 |
Federal Home Loan Bank stock(c) | 13,107 |  |  | 13,107 |  |  | — |  |  | 13,107 |  |  | — |
Cash surrender value of life insurance policies(d) | 153,186 |  |  | 153,186 |  |  | — |  |  | 153,186 |  |  | — |
Financial liabilities |  |  |  |  |  |  |  |  |
Deposit liabilities, other than time deposits(e) | $ | 6,312,788 |  |  | $ | 6,312,788 |  |  | $ | — |  |  | $ | 6,312,788 |  |  | $ | — |
Time certificates of deposits(f) | 663,451 |  |  | 654,685 |  |  | — |  |  | 654,685 |  |  | — |
Federal Home Loan Bank borrowings(f) | 50,767 |  |  | 49,974 |  |  | — |  |  | 49,974 |  |  | — |
Customer repurchase agreements and other short-term borrowings(f) | 141,176 |  |  | 141,176 |  |  | — |  |  | — |  |  | 141,176 |
Junior subordinated debentures(g) | 73,078 |  |  | 70,720 |  |  | — |  |  | 70,720 |  |  | — |
Subordinated debentures(f) | 34,717 |  |  | 31,360 |  |  | — |  |  | — |  |  | 31,360 |
|  |  |  |  | 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
| (Dollars in thousands)
Financial assets |
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) | In accordance with recent accounting guidance, the fair value of loans as of September 30, 2018 was 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. Previously the fair value of loans as of December 31, 2017 was estimated solely 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.

X
- 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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=99377789&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=109250915&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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