XML 46 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Fair Value Information | 3 Months Ended
--- | ---
Mar. 31, 2012
Fair Value Information [Abstract] |
FAIR VALUE INFORMATION |
5. | FAIR VALUE INFORMATION
Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following disclosure provides the fair value information for financial assets and liabilities as of March 31, 2012. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2, and Level 3).
| • |  | Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets.
| • |  | Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
| • |  | Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flows and similar techniques.
There were no transfers in and out of Level 1 and Level 2 measurement during the three months ended March 31, 2012 and 2011. Determination of Fair Value The following is a description of valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not recorded at fair value. Cash and cash equivalents - The carrying amount of cash and cash equivalents is considered to approximate fair value due to the liquidity of these instruments. Interest-bearing balances due from depository institutions - The carrying value of due from depository institutions is considered to approximate fair value due to the short-term nature of these deposits. FHLB stock - The carrying amount of FHLB stock approximates fair value, as the stock may be sold back to the FHLB at carrying value. Investment securities held to maturity - Investment securities held to maturity are valued based upon quotes obtained from an independent third-party pricing service. The Company categorized its held to maturity investment as a level 3 valuation. Investment securities available-for-sale - Investment securities available-for-sale are valued based upon quotes obtained from an independent third-party pricing service. This service uses evaluated pricing applications and model processes. Observable market inputs, such as, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data are considered as part of the evaluation. The inputs are related directly to the security being evaluated, or indirectly to a similarly situated security. Market assumptions and market data are utilized in the valuation models. The Company reviews the market prices provided by the third-party pricing service for reasonableness based on the Company’s understanding of the market place and credit issues related to the securities. The Company has not made any adjustments to the market quotes provided by them and accordingly, the Company categorized its investment portfolio as a Level 2. Loans held for sale - For loans held for sale, carrying value approximated fair value as the loans are recorded at the lower of cost or carrying market value (based on appraisals). Non-covered Loans - The carrying amount of loans and lease finance receivables is their contractual amounts outstanding, reduced by deferred net loan origination fees and the allocable portion of the allowance for credit losses. The fair value of loans, other than loans on nonaccrual status, was estimated by discounting the remaining contractual cash flows using the estimated current rate at which similar loans would be made to borrowers with similar credit risk characteristics and for the same remaining maturities, reduced by deferred net loan origination fees and the allocable portion of the allowance for credit losses. Accordingly, in determining the estimated current rate for discounting purposes, no adjustment has been made for any change in borrowers’ credit risks since the origination of such loans. Rather, the allocable portion of the allowance for credit losses is considered to provide for such changes in estimating fair value. As a result, this fair value is not necessarily the value which would be derived using an exit price. These loans are included within Level 3 of the fair value hierarchy. Non-covered impaired loans and OREO are generally measured using the fair value of the underlying collateral, which is determined based on the most recent appraisal information received, less costs to sell (approximately 8%). Appraised values may be adjusted based on factors such as the changes in market conditions from the time of valuation or discounted cash flows of the property. As such, these loans fall within Level 3 of the fair value hierarchy. The majority of our commitments to extend credit carry current market interest rates if converted to loans. Because these commitments are generally unassignable by either the borrower or us, they only have value to the borrower and us. The estimated fair value approximates the recorded deferred fee amounts and is excluded from the following table because it is not material. Covered Loans - Covered loans were measured at fair value on the date of acquisition. Thereafter, covered loans are not measured at fair value on a recurring basis. The above valuation discussion for non-covered loans is applicable to covered loans following their acquisition date. Swaps - The fair value of the interest rate swap contracts are provided by our counterparty using a system that constructs a yield curve based on cash LIBOR rates, Eurodollar futures contracts, and 3-year through 30-year swap rates. The yield curve determines the valuations of the interest rate swaps. Accordingly, the swap is categorized as a Level 2 valuation. Deposits & Borrowings - The amounts payable to depositors for demand, savings, and money market accounts, and short-term borrowings are considered to approximate fair value. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value of long-term borrowings and junior subordinated debentures is estimated using the rates currently offered for borrowings of similar remaining maturities. Accrued Interest Receivable/Payable - The amounts of accrued interest receivable on loans and lease finance receivables and investments and accrued interest payable on deposits and borrowings are considered to approximate fair value. The table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2012 and December 31, 2011. Assets & Liabilities Measured at Fair Value on a Recurring Basis
(Dollars in thousands) |  | Carrying Value at March 31, 2012 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Description of Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 938,891 |  |  | $ | — |  |  | $ | 938,891 |  |  | $ | — |
CMO’s / REMIC’s – Residential |  |  | 739,202 |  |  |  | — |  |  |  | 739,202 |  |  |  | — |
Government agency |  |  | 37,362 |  |  |  | — |  |  |  | 37,362 |  |  |  | — |
Municipal bonds |  |  | 646,742 |  |  |  | — |  |  |  | 646,742 |  |  |  | — |
Other securities |  |  | 10,532 |  |  |  |  |  |  |  | 10,532 |  |  |  |  |
Investment Securities-AFS |  |  | 2,372,729 |  |  |  | — |  |  |  | 2,372,729 |  |  |  | — |
Interest Rate Swaps |  |  | 18,753 |  |  |  | — |  |  |  | 18,753 |  |  |  | — |
Total Assets |  | $ | 2,391,482 |  |  | $ | — |  |  | $ | 2,391,482 |  |  | $ | — |
Description of Liability |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | 18,753 |  |  | $ | — |  |  | $ | 18,753 |  |  | $ | — |
(Dollars in thousands) |  | Carrying Value at December 31, 2011 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Description of Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 888,000 |  |  | $ | — |  |  | $ | 888,000 |  |  | $ | — |
CMO’s / REMIC’s – Residential |  |  | 604,508 |  |  |  | — |  |  |  | 604,508 |  |  |  | — |
Government agency |  |  | 46,507 |  |  |  | — |  |  |  | 46,507 |  |  |  | — |
Municipal bonds |  |  | 652,037 |  |  |  | — |  |  |  | 652,037 |  |  |  | — |
Other securities |  |  | 10,474 |  |  |  |  |  |  |  | 10,474 |  |  |  |  |
Investment Securities-AFS |  |  | 2,201,526 |  |  |  | — |  |  |  | 2,201,526 |  |  |  | — |
Interest Rate Swaps |  |  | 20,497 |  |  |  | — |  |  |  | 20,497 |  |  |  | — |
Total Assets |  | $ | 2,222,023 |  |  | $ | — |  |  | $ | 2,222,023 |  |  | $ | — |
Description of Liability |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | 20,497 |  |  | $ | — |  |  | $ | 20,497 |  |  | $ | — |
We may be required to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis that were still held on the balance sheet at March 31, 2012 and December 31, 2011, the following table provides the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets for investments with losses during the period. Assets & Liabilities Measured at Fair Value on a Non-Recurring Basis
(Dollars in thousands) |  | Carrying Value at March 31, 2012 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | For the three months ended March 31, 2012 Total Losses |
Description of Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment Security-HTM |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Covered loans held-for-sale |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,219 | )
Impaired Loans-Noncovered |  |  | 6,204 |  |  |  | — |  |  |  | — |  |  |  | 6,204 |  |  |  | (2,179 | )
OREO-Noncovered |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
OREO-Covered |  |  | 609 |  |  |  | — |  |  |  | — |  |  |  | 609 |  |  |  | (159 | )
Assets & Liabilities Measured at Fair Value on a Non-Recurring Basis
(Dollars in thousands) |  | Carrying Value at December 31, 2011 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | For the year ended December 31, 2011 Total Losses |
Description of Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment Security-HTM |  | $ | 2,383 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,383 |  |  | $ | (656 | )
Non-covered loans held-for-sale |  |  | 1,404 |  |  |  | — |  |  |  | — |  |  |  | 1,404 |  |  |  | (250 | )
Impaired Loans-Noncovered |  |  | 30,014 |  |  |  | — |  |  |  | — |  |  |  | 30,014 |  |  |  | (6,707 | )
OREO-Noncovered |  |  | 4,866 |  |  |  | — |  |  |  | — |  |  |  | 4,866 |  |  |  | (523 | )
OREO-Covered |  |  | 2,541 |  |  |  | — |  |  |  | — |  |  |  | 2,541 |  |  |  | (2,192 | )
The following disclosure presents estimated fair value of financial instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company could have realized in a current market exchange as of March 31, 2012 and December 31, 2011. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.
|  | March 31, 2012 |
|  | Carrying Amount |  |  | Estimated Fair Value |
|  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (Dollars in thousands) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total cash and cash equivalents |  | $ | 276,318 |  |  | $ | 276,318 |  |  | $ | — |  |  | $ | — |  |  | $ | 276,318 |
Interest-earning balances due from depository institutions |  |  | 60,000 |  |  |  | — |  |  |  | 60,000 |  |  |  | — |  |  |  | 60,000 |
FHLB Stock |  |  | 69,222 |  |  |  | — |  |  |  | 69,222 |  |  |  | — |  |  |  | 69,222 |
Investment securities available-for-sale |  |  | 2,372,729 |  |  |  | — |  |  |  | 2,372,729 |  |  |  | — |  |  |  | 2,372,729 |
Investment securities held-to-maturity |  |  | 2,280 |  |  |  | — |  |  |  | — |  |  |  | 2,280 |  |  |  | 2,280 |
Non-covered loans held-for-sale |  |  | 630 |  |  |  | — |  |  |  | — |  |  |  | 630 |  |  |  | 630 |
Covered loans held-for-sale |  |  | 3,771 |  |  |  | — |  |  |  | — |  |  |  | 3,771 |  |  |  | 3,771 |
Total loans, net of allowance for credit losses |  |  | 3,336,034 |  |  |  |  |  |  |  | — |  |  |  | 3,477,099 |  |  |  | 3,477,099 |
Accrued interest receivable |  |  | 23,375 |  |  |  | — |  |  |  | 23,375 |  |  |  | — |  |  |  | 23,375 |
Swaps |  |  | 18,753 |  |  |  | — |  |  |  | 18,753 |  |  |  | — |  |  |  | 18,753 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing |  | $ | 2,120,382 |  |  |  | 2,120,382 |  |  |  | — |  |  |  | — |  |  |  | 2,120,382 |
Interest-bearing |  |  | 2,559,725 |  |  |  | — |  |  |  | 2,560,826 |  |  |  | — |  |  |  | 2,560,826 |
Borrowings |  |  | 926,298 |  |  |  | — |  |  |  | 975,702 |  |  |  | — |  |  |  | 975,702 |
Junior subordinated debentures |  |  | 108,250 |  |  |  | — |  |  |  | 108,972 |  |  |  | — |  |  |  | 108,972 |
Accrued interest payable |  |  | 3,417 |  |  |  | — |  |  |  | 3,417 |  |  |  | — |  |  |  | 3,417 |
Swaps |  |  | 18,753 |  |  |  | — |  |  |  | 18,753 |  |  |  | — |  |  |  | 18,753 |
|  | December 31, 2011 |
|  | Carrying Amount |  |  | Estimated Fair Value |
|  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
|  | (Dollars in thousands) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total cash and cash equivalents |  | $ | 345,343 |  |  | $ | 345,343 |  |  | $ | — |  |  | $ | — |  |  | $ | 345,343 |
Interest-earning balances due from depository institutions |  |  | 60,000 |  |  |  | — |  |  |  | 60,000 |  |  |  | — |  |  |  | 60,000 |
FHLB Stock |  |  | 72,689 |  |  |  | — |  |  |  | 72,689 |  |  |  | — |  |  |  | 72,689 |
Investment securities available-for-sale |  |  | 2,201,526 |  |  |  | — |  |  |  | 2,201,526 |  |  |  |  |  |  |  | 2,201,526 |
Investment securities held-to-maturity |  |  | 2,383 |  |  |  | — |  |  |  | — |  |  |  | 2,383 |  |  |  | 2,383 |
Non-covered loans held-for-sale |  |  | 348 |  |  |  | — |  |  |  | — |  |  |  | 348 |  |  |  | 348 |
Covered loans held-for-sale |  |  | 5,664 |  |  |  | — |  |  |  | — |  |  |  | 5,664 |  |  |  | 5,664 |
Total loans, net of allowance for credit losses |  |  | 3,382,632 |  |  |  | — |  |  |  | — |  |  |  | 3,534,960 |  |  |  | 3,534,960 |
Accrued interest receivable |  |  | 23,512 |  |  |  | — |  |  |  | 23,512 |  |  |  | — |  |  |  | 23,512 |
Swaps |  |  | 20,497 |  |  |  | — |  |  |  | 20,497 |  |  |  | — |  |  |  | 20,497 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing |  | $ | 2,027,876 |  |  |  | 2,027,876 |  |  |  | — |  |  |  | — |  |  |  | 2,027,876 |
Interest-bearing |  |  | 2,576,672 |  |  |  | — |  |  |  | 2,577,825 |  |  |  | — |  |  |  | 2,577,825 |
Borrowings |  |  | 958,032 |  |  |  | — |  |  |  | 1,012,211 |  |  |  | — |  |  |  | 1,012,211 |
Junior subordinated debentures |  |  | 115,055 |  |  |  | — |  |  |  | 115,854 |  |  |  | — |  |  |  | 115,854 |
Accrued interest payable |  |  | 3,526 |  |  |  | — |  |  |  | 3,526 |  |  |  | — |  |  |  | 3,526 |
Swaps |  |  | 20,497 |  |  |  | — |  |  |  | 20,497 |  |  |  | — |  |  |  | 20,497 |
The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2012 and December 31, 2011. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and therefore, current estimates of fair value may differ significantly from the amounts presented above.

X
- 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 5 -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 -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 3: 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=6947722&loc=d3e13433-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D -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 5: 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 6: 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=6947722&loc=d3e13504-108611 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d -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 8: 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=6947722&loc=d3e13537-108611 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B -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 10: 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=6925170&loc=d3e19207-110258 Reference 11: 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 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 -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 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b -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 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 -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. + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration