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Fair Value of Financial Instruments (Tables)
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12 Months Ended |
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Dec. 31, 2014
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| Fair Value Disclosures [Abstract] |
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| Financial Assets Measured at Fair Value on a Recurring Basis and the Change in Fair Value |
The following tables present financial assets measured at fair value on a recurring basis at December 31, 2014 and 2013. There were no transfers between Level 1, 2, and 3 during the year ended December 31, 2014. | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 2014 | (in thousands) | | Total | | Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | Obligations of U.S. Government sponsored enterprises | | $ | 26,284 |
| | $ | — |
| | $ | 26,284 |
| | $ | — |
| Municipal securities | | 14,860 |
| | — |
| | 14,860 |
| | — |
| Residential mortgage-backed securities | | 108,446 |
| | — |
| | 108,446 |
| | — |
| Mortgage loans held-for-sale | | 181,424 |
| | — |
| | 181,424 |
| | — |
| Other assets(1) | | 2,691 |
| | — |
| | — |
| | 2,691 |
| Other liabilities(1) | | (1,341 | ) | | — |
| | — |
| | (1,341 | ) |
| | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 2013 | (in thousands) | | Total | | Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | Obligations of U.S. Government sponsored enterprises | | $ | 21,039 |
| | $ | — |
| | $ | 21,039 |
| | $ | — |
| Municipal securities | | 14,769 |
| | — |
| | 14,769 |
| | — |
| Residential mortgage-backed securities | | 133,057 |
| | — |
| | 133,057 |
| | — |
| Mortgage loans held-for-sale | | 127,850 |
| | — |
| | 127,850 |
| | — |
| Other assets(1) | | 3,271 |
| | — |
| | — |
| | 3,271 |
| Other liabilities(1) | | (156 | ) | | — |
| | — |
| | (156 | ) |
| | (1) | Includes mortgage-related IRLCs and derivative financial instruments to hedge interest rate risk. IRLCs recorded on a gross basis. |
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| Reconciliation of All Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) |
The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2014 and 2013. The changes in the fair value of economic hedges were recorded in noninterest income from mortgage banking activities in the Consolidated Statements of Comprehensive Income and are designed to partially offset the change in fair value of the financial instruments referenced in the following table. | | | | | | | | | | | | | | | | | | | | As of or for the Year Ended December 31, | | | 2014 | | 2013 | (in thousands) | | Other
assets(1) | | Other
liabilities(1) | | Other
assets(1) | | Other
liabilities(1) | Beginning balance | | $ | 3,271 |
| | $ | (156 | ) | | $ | 4,864 |
| | $ | (1,053 | ) | Total gains (losses) included in earnings: | | | | | | | | | Issuances | | 12,740 |
| | (4,140 | ) | | 34,531 |
| | (7,865 | ) | Settlements and closed loans | | (12,800 | ) | | 2,945 |
| | (15,677 | ) | | — |
| Expirations | | (520 | ) | | 10 |
| | (20,447 | ) | | 8,762 |
| Ending balance | | $ | 2,691 |
| | $ | (1,341 | ) | | $ | 3,271 |
| | $ | (156 | ) |
| | (1) | Includes mortgage-related IRLCs and derivative financial instruments entered to hedge interest rate risk. |
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| Reconciliation of all Liabilities Measured on Recurring Basis Using Unobservable Inputs |
The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2014 and 2013. The changes in the fair value of economic hedges were recorded in noninterest income from mortgage banking activities in the Consolidated Statements of Comprehensive Income and are designed to partially offset the change in fair value of the financial instruments referenced in the following table. | | | | | | | | | | | | | | | | | | | | As of or for the Year Ended December 31, | | | 2014 | | 2013 | (in thousands) | | Other
assets(1) | | Other
liabilities(1) | | Other
assets(1) | | Other
liabilities(1) | Beginning balance | | $ | 3,271 |
| | $ | (156 | ) | | $ | 4,864 |
| | $ | (1,053 | ) | Total gains (losses) included in earnings: | | | | | | | | | Issuances | | 12,740 |
| | (4,140 | ) | | 34,531 |
| | (7,865 | ) | Settlements and closed loans | | (12,800 | ) | | 2,945 |
| | (15,677 | ) | | — |
| Expirations | | (520 | ) | | 10 |
| | (20,447 | ) | | 8,762 |
| Ending balance | | $ | 2,691 |
| | $ | (1,341 | ) | | $ | 3,271 |
| | $ | (156 | ) |
| | (1) | Includes mortgage-related IRLCs and derivative financial instruments entered to hedge interest rate risk. |
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| Assets Measured at Fair Value on Nonrecurring Basis |
The following tables present financial assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy during the years ended December 31, 2014 and 2013. | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 2014 | (in thousands) | | Total | | Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | Impaired loans | | $ | 19,885 |
| | $ | — |
| | $ | — |
| | $ | 19,885 |
| ORE | | 10,935 |
| | — |
| | — |
| | 10,935 |
| Residential mortgage servicing rights | | 30,304 |
| | — |
| | — |
| | 30,304 |
| SBA servicing rights | | 4,654 |
| | — |
| | — |
| | 4,654 |
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| | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 2013 | (in thousands) | | Total | | Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | Impaired loans | | $ | 29,416 |
| | $ | — |
| | $ | — |
| | $ | 29,416 |
| ORE | | 12,779 |
| | — |
| | — |
| | 12,779 |
| Residential mortgage servicing rights | | 22,779 |
| | — |
| | — |
| | 22,779 |
| SBA servicing rights | | 4,140 |
| | — |
| | — |
| | 4,140 |
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| Significant Unobservable Inputs Used in the Fair Value Measurement of Level 3 Assets and Liabilities |
The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities: | | | | | | | | | | | | | | | | | | | | | | Fair Value at December 31, | | | | | | | | | ($ in thousands) | | 2014 | | 2013 | | Valuation
Technique | | Unobservable
Inputs | | Range/Weighted
Average at
December 31, 2014 | | Range/Weighted
Average at
December 31, 2013 | Nonrecurring: | | | | | | | | | | | | | Impaired loans | | $ | 19,885 |
| | $ | 29,416 |
| | Discounted
appraisals
less
estimated
selling costs | | Collateral
discounts | | 0% - 30%
2.51% |
| | 0% - 30%
7.44% |
| | | | | | | | | Estimated
selling costs | | 10.00 | % | | 10.00 | % | Other real estate | | 10,935 |
| | 12,779 |
| | Discounted
appraisals
less
estimated
selling costs | | Collateral
discounts | | 0%
0% |
| | 0% - 15%
3.05% |
| | | | | | | | | Estimated
selling costs | | 0 - 10%
7.83% |
| | 0 - 10%
8.93% |
| Residential mortgage servicing rights | | 30,304 |
| | 22,779 |
| | Discounted
cash flows | | Discount rate | | 9.50% - 12.25%
9.73% |
| | 10.00% - 12.75%
10.14% |
| | | | | | | | | Prepayment
speeds | | 7.63% - 19.96%
9.24% |
| | 6.33% - 17.33%
7.33% |
| SBA servicing rights | | 4,654 |
| | 4,140 |
| | Discounted
cash flows | | Discount rate | | 13.50 | % | | 13.50 | % | | | | | | | | | Prepayment
speeds | | 7.64 | % | | 5.94 | % | Recurring: | | | | | | | | | | | | | IRLCs | | 2,448 |
| | 880 |
| | Pricing
model | | Pull-through
ratio | | 77.00 | % | | 80.00 | % | Forward commitments | | (1,098 | ) | | 2,235 |
| | Investor
pricing | | Pricing spreads | | 90.00% - 109.63%
103.77% |
| | 90.00% - 107.41%
101.76% |
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| Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance of Loans Held-for-sale |
The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held-for-sale for which the fair value option ("FVO") has been elected as of December 31, 2014 and 2013. There were no loans held-for-sale measured under FVO that were 90 days or more past due or in nonaccrual status at December 31, 2014 or 2013. | | | | | | | | | | | | | | (in thousands) | | Aggregate Fair Value
December 31, 2014 | | Aggregate Unpaid
Principal Balance Under
FVO at December 31, 2014 | | Fair Value Over
Unpaid Principal | Residential mortgage loans held-for-sale | | $ | 181,424 |
| | $ | 177,314 |
| | $ | 4,110 |
| | | | | | | | (in thousands) | | Aggregate Fair Value
December 31, 2013 | | Aggregate Unpaid
Principal Balance Under
FVO at December 31, 2013 | | Fair Value Over
Unpaid Principal | Residential mortgage loans held-for-sale | | $ | 127,850 |
| | $ | 127,759 |
| | $ | 91 |
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| Disclosure of Carrying Amount and Fair Value of Financial Instruments |
| | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 2014 | (in thousands) | | Carrying
Amount | | Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Total Fair
Value | Financial instruments (assets): | | | | | | | | | | | Cash and cash equivalents | | $ | 71,605 |
| | $ | 71,605 |
| | $ | — |
| | $ | — |
| | $ | 71,605 |
| Investment securities available-for-sale | | 149,590 |
| | — |
| | 149,590 |
| | — |
| | 149,590 |
| Investment securities held-to-maturity | | 7,349 |
| | — |
| | 3,414 |
| | 4,277 |
| | 7,691 |
| Total loans, net(1) | | 2,596,791 |
| | — |
| | 181,424 |
| | 2,303,388 |
| | 2,484,812 |
| Financial instruments (liabilities): | | | | | | | | | | | Noninterest-bearing demand deposits | | 558,018 |
| | — |
| | — |
| | 558,018 |
| | 558,018 |
| Interest-bearing deposits | | 1,900,004 |
| | — |
| | — |
| | 1,901,636 |
| | 1,901,636 |
| Other borrowings | | 291,087 |
| | — |
| | 291,087 |
| | — |
| | 291,087 |
| Subordinated debt | | 46,393 |
| | — |
| | 47,232 |
| | — |
| | 47,232 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at December 31, 2013 | (in thousands) | | Carrying
Amount | | Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Total Fair
Value | Financial instruments (assets): | | | | | | | | | | | Cash and cash equivalents | | $ | 116,559 |
| | $ | 116,559 |
| | $ | — |
| | $ | — |
| | $ | 116,559 |
| Investment securities available-for-sale | | 168,865 |
| | — |
| | 168,865 |
| | — |
| | 168,865 |
| Investment securities held-to-maturity | | 4,051 |
| | — |
| | 4,437 |
| | — |
| | 4,437 |
| Total loans, net(1) | | 2,046,719 |
| | — |
| | 127,850 |
| | 1,851,670 |
| | 1,979,520 |
| Financial instruments (liabilities): | | | | | | | | | | | Noninterest-bearing demand deposits | | 488,224 |
| | — |
| | — |
| | 488,224 |
| | 488,224 |
| Interest-bearing deposits | | 1,714,228 |
| | — |
| | — |
| | 1,719,562 |
| | 1,719,562 |
| Other borrowings | | 59,233 |
| | — |
| | 59,233 |
| | — |
| | 59,233 |
| Subordinated debt | | 46,393 |
| | — |
| | 45,737 |
| | — |
| | 45,737 |
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| | (1) | Includes $181,424 and $127,850 in residential mortgage loans held-for-sale at December 31, 2014 and 2013, respectively, for which the Company has elected FVO. |
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