Beneficial Mutual Bancorp Inc - 10-K filing on 2014-03-10

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Those assets which will continue to be measured at fair value on a recurring basis are as follows at December 31, 2013:

	Category Used for Fair Value Measurement
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Mortgage servicing rights	$	—	$	—	$	1,524	$	1,524
Investment securities available for sale:
U.S. GSE and agency notes	—		12,917		—		12,917
GNMA guaranteed mortgage certificates	—		6,019		—		6,019
Collateralized mortgage obligations (“CMOs”)
GSE CMOs	—		96,429		—		96,429
GSE mortgage-backed securities	—		833,098		—		833,098
Municipal bonds
General obligation municipal bonds	—		51,316		—		51,316
Revenue municipal bonds	—		16,113		—		16,113
Money market funds	17,015		—		—		17,015
Mutual funds	1,261		—		—		1,261
Certificates of deposit	12		—		—		12
Interest rate swap agreements	—		294		—		294
Total Assets	$	18,288	$	1,016,186	$	1,524	$	1,035,998
Liabilities:
Interest rate swap agreements	$	—	$	270	$	—	$	270
Total Liabilities	$	—	$	270	$	—	$	270

Those assets which will continue to be measured at fair value on a recurring basis are as follows at December 31, 2012:

	Category Used for Fair Value Measurement
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Mortgage servicing rights	$	—	$	—	$	1,302	$	1,302
Investment securities available for sale:
U.S. GSE and agency notes	—		26,367		—		26,367
GNMA guaranteed mortgage certificates	—		6,986		—		6,986
Collateralized mortgage obligations (“CMOs”)
Government (GNMA) guaranteed CMOs	—		1,433		—		1,433
GSE CMOs	—		136,524		—		136,524
Non-Agency CMOs	—		20,510		—		20,510
GSE mortgage-backed securities	—		965,682		—		965,682
Municipal bonds
General obligation municipal bonds	—		63,130		—		63,130
Revenue municipal bonds	—		16,883		—		16,883
Pooled trust preferred securities (financial industry)	—		—		8,722		8,722
Money market funds	19,504		—		—		19,504
Mutual funds	1,565		—		—		1,565
Certificates of deposit	185		—		—		185
Interest rate swap agreements	—		395		—		395
Total Assets	$	21,254	$	1,237,910	$	10,024	$	1,269,188
Liabilities:
Interest rate swap agreements	$	—	$	418	$	—	$	418
Total Liabilities	$	—	$	418	$	—	$	418

	Year Ended						Year Ended
	December 31, 2013						December 31, 2012
Level 3 Investments Only (Dollars in thousands)	Trust Preferred Securities			Mortgage Servicing Rights			Trust Preferred Securities			Mortgage Servicing Rights
Balance, January 1,	$	8,722		$	1,302		$	11,153		$	647
Additions	—			150			—			948
Included in other comprehensive income	1,660			—			620			—
Payments	(4,621		)	(198		)	(3,181		)	(78		)
Net accretion	177			—			130			—
Increase (decrease) in fair value due to changes in valuation input or assumptions	—			270			—			(215		)
Sales	(5,938		)	—			—			—
Balance, December 31,	$	—		$	1,524		$	8,722		$	1,302

(Dollars in thousands)	Balance Transferred YTD 12/31/12		Level 1		Level 2		Level 3		Gain/(Losses)
Impaired loans	$	25,133	$	—	$	—	$	25,133	$	(2,385	)
Other real estate owned	4,508		—		—		4,508		(231		)
Customer list intangible asset	2,952		—		—		2,952		(773		)

	Fair Value of Financial Instruments
		At December 31, 2013				At December 31, 2012
				Estimated				Estimated
	Fair Value	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Hierarchy Level	Amount		Value		Amount		Value
Assets:
Cash and cash equivalents	Level 1	$	355,683	$	355,683	$	489,908	$	489,908
Securities available for sale	See previous table	1,034,180		1,034,180		1,267,491		1,267,491
Securities held to maturity	Level 2	528,829		514,633		477,198		487,307
FHLB stock	Level 3	17,417		17,417		16,384		16,384
Loans, net	Level 3	2,285,378		2,323,627		2,387,000		2,465,126
Loans held for sale	Level 2	780		806		2,655		2,773
Mortgage servicing rights	Level 3	1,524		1,524		1,302		1,302
Interest rate swaps	Level 2	294		294		395		395
Accrued interest receivable	Level 3	13,999		13,999		15,381		15,381

Liabilities:
Deposits	Level 2	3,660,016		3,666,614		3,927,513		3,938,718
Borrowed funds	Level 2	250,370		249,845		250,352		264,619
Interest rate swaps	Level 2	270		270		418		418
Accrued interest payable	Level 2	2,206		2,206		2,236		2,236