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FAIR VALUE OF ASSETS AND LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Schedule of carrying amount and estimated fair value of financial instruments
 
 
 
 
 
Fair Value Measurement Using
 
Carrying
Amount
 
Estimated
Fair Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
December 31, 2016
 

 
 

 
 

 
 

 
 

Financial assets:
 

 
 

 
 

 
 

 
 

Cash and due from banks
$
75,272

 
$
75,272

 
$
75,272

 
$

 
$

Interest-bearing deposits in other banks
9,069

 
9,069

 
9,069

 

 

Investment securities
1,461,515

 
1,458,213

 
660

 
1,445,357

 
12,196

Loans held for sale
31,881

 
31,881

 

 
31,881

 

Net loans and leases
3,468,259

 
3,426,976

 

 
30,723

 
3,396,253

Accrued interest receivable
15,675

 
15,675

 
15,675

 

 

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
1,265,246

 
1,265,246

 
1,265,246

 

 

Interest-bearing demand and savings deposits
2,253,591

 
2,253,591

 
2,253,591

 

 

Time deposits
1,089,364

 
1,088,436

 

 

 
1,088,436

Short-term debt
135,000

 
135,000

 

 
135,000

 

Long-term debt
92,785

 
68,186

 

 
68,186

 

Accrued interest payable (included in other liabilities)
1,556

 
1,556

 
1,556

 

 

 
 
 
 
 
 
 
 
 
 
Off-balance sheet financial instruments:
 
 
 
 
 
 
 
 
 
Commitments to extend credit
825,304

 
1,046

 

 
1,046

 

Standby letters of credit and financial guarantees written
16,073

 
241

 

 
241

 

Interest rate options
879

 
6

 

 
6

 

Forward interest rate contracts
32,497

 
136

 

 
136

 

 
 
 
 
 
Fair Value Measurement Using
 
Carrying
Amount
 
Estimated
Fair Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
December 31, 2015
 

 
 

 
 

 
 

 
 

Financial assets:
 

 
 

 
 

 
 

 
 

Cash and due from banks
$
71,797

 
$
71,797

 
$
71,797

 
$

 
$

Interest-bearing deposits in other banks
8,397

 
8,397

 
8,397

 

 

Investment securities
1,520,172

 
1,516,391

 
916

 
1,502,996

 
12,479

Loans held for sale
14,109

 
14,109

 

 
14,109

 

Net loans and leases
3,148,218

 
3,094,404

 

 
38,205

 
3,056,199

Accrued interest receivable
14,898

 
14,898

 
14,898

 

 

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 

 
 

 
 

 
 

 
 

Deposits:
 

 
 

 
 

 
 

 
 

Noninterest-bearing deposits
1,145,244

 
1,145,244

 
1,145,244

 

 

Interest-bearing demand and savings deposits
2,223,988

 
2,223,988

 
2,223,988

 

 

Time deposits
1,064,207

 
1,064,255

 

 

 
1,064,255

Short-term debt
69,000

 
69,000

 

 
69,000

 

Long-term debt
92,785

 
67,421

 

 
67,421

 

Accrued interest payable (included in other liabilities)
1,072

 
1,072

 
1,072

 

 

 
 
 
 
 
 
 
 
 
 
Off-balance sheet financial instruments:
 

 
 

 
 

 
 

 
 

Commitments to extend credit
801,835

 
1,014

 

 
1,014

 

Standby letters of credit and financial guarantees written
13,434

 
202

 

 
202

 

Interest rate options
24,009

 
43

 

 
43

 

Forward interest rate contracts
9,973

 
15

 

 
15

 

Schedule of balances of assets and liabilities measured at fair value on a recurring basis
The following table below presents the balances of assets and liabilities measured at fair value on a recurring basis:
 
 
 
 
Fair Value at Reporting Date Using
 
Fair
Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
December 31, 2016
 

 
 

 
 

 
 

Available for sale securities:
 

 
 

 
 

 
 

Debt securities:
 

 
 

 
 

 
 

States and political subdivisions
$
185,041

 
$

 
$
172,845

 
$
12,196

Corporate securities
99,389

 

 
99,389

 

Mortgage-backed securities:
 
 
 
 
 
 
 
U.S. Government sponsored entities
769,986

 

 
769,986

 

Non-government sponsored entities
188,771

 

 
188,771

 

Other
660

 
660

 

 

Derivatives - Interest rate contracts
142

 

 
142

 

Total
$
1,243,989

 
$
660

 
$
1,231,133

 
$
12,196

 
 
 
Fair Value at Reporting Date Using
 
Fair
Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
December 31, 2015
 

 
 

 
 

 
 

Available for sale securities:
 

 
 

 
 

 
 

Debt securities:
 

 
 

 
 

 
 

States and political subdivisions
$
190,473

 
$

 
$
177,994

 
$
12,479

Corporate securities
108,571

 

 
108,571

 

Mortgage-backed securities:
 

 
 

 
 

 
 

U.S. Government sponsored entities
771,909

 

 
771,909

 

Non-government sponsored entities
200,386

 

 
200,386

 

Other
916

 
916

 

 

Derivatives - Interest rate contracts
59

 

 
59

 

Total
$
1,272,314

 
$
916

 
$
1,258,919

 
$
12,479

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
 
 
Available for Sale 
Debt Securities - 
States and
Political 
Subdivisions
 
(Dollars in thousands)
Balance as of December 31, 2014
$
13,095

Principal payments received
(987
)
Purchases

Unrealized net loss included in other comprehensive loss
371

Balance as of December 31, 2015
$
12,479

Principal payments received
(338
)
Purchases

Unrealized net gain included in other comprehensive income
55

Balance as of December 31, 2016
$
12,196

Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis
For assets measured at fair value on a nonrecurring basis that were recorded at fair value on our balance sheet, the following table provides the level of valuation assumptions used to determine the respective fair values:
 
 
 
 
Fair Value Measurements Using
 
 
 
Fair Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Losses
 
(Dollars in thousands)
December 31, 2016
 

 
 

 
 

 
 

 
 

Impaired loans (1)
$
30,723

 
$

 
$
30,723

 
$

 
$

Other real estate (2)
791

 

 
791

 

 

 
 

 
 

 
 

 
 

 
$

 
 
 
 
 
 
 
 
 
 
December 31, 2015
 

 
 

 
 

 
 

 
 

Impaired loans (1)
$
38,153

 
$

 
$
38,153

 
$

 
$
111

Other real estate (2)
1,962

 

 
1,962

 

 
220

 
 

 
 

 
 

 
 

 
$
331


 
 
(1)
Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral.

(2)
Represents other real estate that is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.