Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2015 |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities |
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Fair Value Hierarchy |
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Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: |
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Level 1: | Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value. | | | | | | | | | | | | | | | | | | |
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Level 2: | Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market. | | | | | | | | | | | | | | | | | | |
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Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed. | | | | | | | | | | | | | | | | | | |
Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements. Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis. |
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Assets and Liabilities Measured at Fair Value on a Recurring Basis |
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Investment Securities Available-for-Sale |
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Fair values of investment securities available-for-sale were primarily measured using information from a third-party pricing service. This service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications. Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury. As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements. Level 2 investment securities were primarily comprised of debt securities issued by the Small Business Administration, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. |
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On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service. This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service. Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Investment securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs to determine fair value. As of March 31, 2015 and December 31, 2014, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets. On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. The Company’s third-party pricing service has also established processes for us to submit inquiries regarding quoted prices. Periodically, we will challenge the quoted prices provided by our third-party pricing service. The Company’s third-party pricing service will review the inputs to the evaluation in light of the new market data presented by us. The Company’s third-party pricing service may then affirm the original quoted price or may update the evaluation on a going forward basis. |
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Loans Held for Sale |
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The fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets, and therefore, is classified as a Level 2 measurement. |
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Mortgage Servicing Rights |
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Mortgage servicing rights do not trade in an active market with readily observable market data. As a result, the Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company stratifies its mortgage servicing portfolio on the basis of loan type. The assumptions used in the discounted cash flow model are those that we believe market participants would use in estimating future net servicing income. Significant assumptions in the valuation of mortgage servicing rights include estimated loan repayment rates, the discount rate, servicing costs, and the timing of cash flows, among other factors. Mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. |
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Other Assets |
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Other assets recorded at fair value on a recurring basis are primarily comprised of investments related to deferred compensation arrangements. Quoted prices for these investments, primarily in mutual funds, are available in active markets. Thus, the Company’s investments related to deferred compensation arrangements are classified as Level 1 measurements in the fair value hierarchy. |
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Derivative Financial Instruments |
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Derivative financial instruments recorded at fair value on a recurring basis are comprised of interest rate lock commitments (“IRLCs”), forward commitments, interest rate swap agreements, foreign exchange contracts, and Visa Class B to Class A shares conversion rate swap agreements. The fair values of IRLCs are calculated based on the value of the underlying loan, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a factor which considers the likelihood that the loan in a locked position will ultimately close. This factor, the closing ratio, is derived from the Bank’s internal data and is adjusted using significant management judgment. As such, IRLCs are classified as Level 3 measurements. Forward commitments are classified as Level 2 measurements as they are primarily based on quoted prices from the secondary market based on the settlement date of the contracts, interpolated or extrapolated, if necessary, to estimate a fair value as of the end of the reporting period. The fair values of interest rate swap agreements are calculated using a discounted cash flow approach and utilize Level 2 observable inputs such as the LIBOR swap curve, effective date, maturity date, notional amount, and stated interest rate. In addition, the Company includes in its fair value calculation a credit factor adjustment which is based primarily on management judgment. Thus, interest rate swap agreements are classified as a Level 3 measurement. The fair values of foreign exchange contracts are calculated using the Bank’s multi-currency accounting system which utilizes contract specific information such as currency, maturity date, contractual amount, and strike price, along with market data information such as the spot rates of specific currency and yield curves. Foreign exchange contracts are classified as Level 2 measurements because while they are valued using the Bank’s multi-currency accounting system, significant management judgment or estimation is not required. The fair value of the Visa Class B restricted shares to Class A unrestricted common shares conversion rate swap agreement represents the amount owed by the Company to the buyer of the Visa Class B shares as a result of a reduction of the conversion ratio subsequent to the sales dates. As of March 31, 2015 and December 31, 2014, the conversion rate swap agreement was valued at zero as reductions to the conversion ratio were neither probable nor reasonably estimable by management. This conversion rate swap agreement is classified as a Level 2 measurement. See Note 11 to the Consolidated Financial Statements for more information. |
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The Company is exposed to credit risk if borrowers or counterparties fail to perform. The Company seeks to minimize credit risk through credit approvals, limits, monitoring procedures, and collateral requirements. The Company generally enters into transactions with borrowers and counterparties that carry high quality credit ratings. Credit risk associated with borrowers or counterparties as well as the Company’s non-performance risk is factored into the determination of the fair value of derivative financial instruments. |
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The table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: |
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| Quoted Prices | | | Significant | | | Significant | | | | | | | | |
in Active | Other | Unobservable | | | | |
Markets for | Observable | Inputs | | | | |
Identical Assets | Inputs | | | | | |
or Liabilities | | | | | | |
(dollars in thousands) | (Level 1) | | | (Level 2) | | | (Level 3) | | | Total | | | | | |
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31-Mar-15 | | | | | | | | | | | | | | | |
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Assets: | | | | | | | | | | | | | | | |
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Investment Securities Available-for-Sale | | | | | | | | | | | | | | | |
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Debt Securities Issued by the U.S. Treasury | $ | 61,106 | | | $ | 294,545 | | | $ | — | | | $ | 355,651 | | | | | |
and Government Agencies | | | | |
Debt Securities Issued by States and Political Subdivisions | — | | | 752,468 | | | — | | | 752,468 | | | | | |
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Debt Securities Issued by Corporations | — | | | 285,945 | | | — | | | 285,945 | | | | | |
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Mortgage-Backed Securities: | | | | | | | | | | | | | | | |
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Residential - Government Agencies | — | | | 427,391 | | | — | | | 427,391 | | | | | |
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Residential - U.S. Government-Sponsored Enterprises | — | | | 283,574 | | | — | | | 283,574 | | | | | |
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Commercial - Government Agencies | — | | | 166,157 | | | — | | | 166,157 | | | | | |
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Total Mortgage-Backed Securities | — | | | 877,122 | | | — | | | 877,122 | | | | | |
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Total Investment Securities Available-for-Sale | 61,106 | | | 2,210,080 | | | — | | | 2,271,186 | | | | | |
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Loans Held for Sale | — | | | 1,951 | | | — | | | 1,951 | | | | | |
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Mortgage Servicing Rights | — | | | — | | | 2,277 | | | 2,277 | | | | | |
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Other Assets | 19,577 | | | — | | | — | | | 19,577 | | | | | |
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Derivatives 1 | — | | | 18 | | | 16,455 | | | 16,473 | | | | | |
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Total Assets Measured at Fair Value on a | $ | 80,683 | | | $ | 2,212,049 | | | $ | 18,732 | | | $ | 2,311,464 | | | | | |
Recurring Basis as of March 31, 2015 | | | | |
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Liabilities: | | | | | | | | | | | | | | | |
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Derivatives 1 | $ | — | | | $ | 135 | | | $ | 16,185 | | | $ | 16,320 | | | | | |
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Total Liabilities Measured at Fair Value on a | $ | — | | | $ | 135 | | | $ | 16,185 | | | $ | 16,320 | | | | | |
Recurring Basis as of March 31, 2015 | | | | |
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31-Dec-14 | | | | | | | | | | | | | | | |
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Assets: | | | | | | | | | | | | | | | |
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Investment Securities Available-for-Sale | | | | | | | | | | | | | | | |
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Debt Securities Issued by the U.S. Treasury | $ | 61,271 | | | $ | 269,987 | | | $ | — | | | $ | 331,258 | | | | | |
and Government Agencies | | | | |
Debt Securities Issued by States and Political Subdivisions | — | | | 743,970 | | | — | | | 743,970 | | | | | |
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Debt Securities Issued by Corporations | — | | | 294,833 | | | — | | | 294,833 | | | | | |
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Mortgage-Backed Securities: | | | | | | | | | | | | | | | |
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Residential - Government Agencies | — | | | 462,436 | | | — | | | 462,436 | | | | | |
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Residential - U.S. Government-Sponsored Enterprises | — | | | 278,461 | | | — | | | 278,461 | | | | | |
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Commercial - Government Agencies | — | | | 178,232 | | | — | | | 178,232 | | | | | |
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Total Mortgage-Backed Securities | — | | | 919,129 | | | — | | | 919,129 | | | | | |
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Total Investment Securities Available-for-Sale | 61,271 | | | 2,227,919 | | | — | | | 2,289,190 | | | | | |
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Loans Held for Sale | — | | | 5,136 | | | — | | | 5,136 | | | | | |
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Mortgage Servicing Rights | — | | | — | | | 2,604 | | | 2,604 | | | | | |
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Other Assets | 18,794 | | | — | | | — | | | 18,794 | | | | | |
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Derivatives 1 | — | | | 101 | | | 16,414 | | | 16,515 | | | | | |
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Total Assets Measured at Fair Value on a | $ | 80,065 | | | $ | 2,233,156 | | | $ | 19,018 | | | $ | 2,332,239 | | | | | |
Recurring Basis as of December 31, 2014 | | | | |
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Liabilities: | | | | | | | | | | | | | | | |
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Derivatives 1 | $ | — | | | $ | 459 | | | $ | 16,296 | | | $ | 16,755 | | | | | |
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Total Liabilities Measured at Fair Value on a | $ | — | | | $ | 459 | | | $ | 16,296 | | | $ | 16,755 | | | | | |
Recurring Basis as of December 31, 2014 | | | | |
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1 | The fair value of each class of derivatives is shown in Note 11 to the Consolidated Financial Statements. | | | | | | | | | | | | | | | | | | |
For the three months ended March 31, 2015 and 2014, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows: |
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(dollars in thousands) | Mortgage | | | Net Derivative | | | | | | | | | | | | | |
Servicing Rights 1 | Assets and | | | | | | | | | | | | |
| Liabilities 2 | | | | | | | | | | | | |
Three Months Ended March 31, 2015 | | | | | | | | | | | | | | | | | |
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Balance as of January 1, 2015 | $ | 2,604 | | | $ | 118 | | | | | | | | | | | | | |
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Realized and Unrealized Net Gains (Losses): | | | | | | | | | | | | | | | | | |
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Included in Net Income | (327 | ) | | 587 | | | | | | | | | | | | | |
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Transfers to Loans Held for Sale | — | | | (435 | ) | | | | | | | | | | | | |
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Balance as of March 31, 2015 | $ | 2,277 | | | $ | 270 | | | | | | | | | | | | | |
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Total Unrealized Net Gains (Losses) Included in Net Income | $ | (251 | ) | | $ | 270 | | | | | | | | | | | | | |
Related to Assets Still Held as of March 31, 2015 | | | | | | | | | | | | |
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Three Months Ended March 31, 2014 | | | | | | | | | | | | | | | | | |
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Balance as of January 1, 2014 | $ | 3,826 | | | $ | 379 | | | | | | | | | | | | | |
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Realized and Unrealized Net Gains (Losses): | | | | | | | | | | | | | | | | | |
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Included in Net Income | (445 | ) | | 1,104 | | | | | | | | | | | | | |
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Transfers to Loans Held for Sale | — | | | (1,194 | ) | | | | | | | | | | | | |
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Balance as of March 31, 2014 | $ | 3,381 | | | $ | 289 | | | | | | | | | | | | | |
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Total Unrealized Net Gains (Losses) Included in Net Income | $ | (349 | ) | | $ | 289 | | | | | | | | | | | | | |
Related to Assets Still Held as of March 31, 2014 | | | | | | | | | | | | |
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1 | Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income. | | | | | | | | | | | | | | | | | | |
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2 | Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company’s consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company’s consolidated statements of income. | | | | | | | | | | | | | | | | | | |
For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of March 31, 2015 and December 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: |
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| | | | Significant Unobservable Inputs | | Fair Value | |
(weighted-average) | |
(dollars in thousands) | | Valuation | | Description | | Mar. 31, | | | Dec. 31, | | | Mar. 31, | | | Dec. 31, | | |
Technique | 2015 | 2014 | 2015 | 2014 | |
Mortgage Servicing Rights | | Discounted Cash Flow | | Constant Prepayment Rate 1 | | 12.96 | % | | 11.62 | % | | $ | 23,708 | | | $ | 25,441 | | |
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| | | | Discount Rate 2 | | 10.32 | % | | 10.61 | % | | | | | |
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Net Derivative Assets and Liabilities: | | | | | | | | | | | | | |
Interest Rate Lock Commitments | | Pricing Model | | Closing Ratio | | 93.42 | % | | 93.85 | % | | $ | 303 | | | $ | 152 | | |
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Interest Rate Swap Agreements | | Discounted Cash Flow | | Credit Factor | | 0.21 | % | | 0.21 | % | | $ | (33 | ) | | $ | (34 | ) | |
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1 | Represents annualized loan repayment rate assumption. | | | | | | | | | | | | | | | | | | |
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2 | Derived from multiple interest rate scenarios that incorporate a spread to the London Interbank Offered Rate swap curve and market volatilities. | | | | | | | | | | | | | | | | | | |
The significant unobservable inputs used in the fair value measurement of the Company’s mortgage servicing rights are the weighted-average constant prepayment rate and weighted-average discount rate. Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the constant prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other. |
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The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company’s Treasury Division enters observable and unobservable inputs into the model to arrive at an estimated fair value. To assess the reasonableness of the fair value measurement, the Treasury Division performs a back-test by applying the model to historical prepayment data. The fair value and constant prepayment rate are also compared to forward-looking estimates to assess reasonableness. The Treasury Division also compares the fair value of the Company’s mortgage servicing rights to a value calculated by an independent third party. Discussions are held with members from the Treasury, Mortgage Banking, and Controllers Divisions, along with the independent third party to discuss and reconcile the fair value estimates and key assumptions used by the respective parties in arriving at those estimates. A subcommittee of the Company’s Asset/Liability Management Committee is responsible for providing oversight over the valuation methodology and key assumptions. |
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The significant unobservable input used in the fair value measurement of the Company’s IRLCs is the closing ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. Generally, the fair value of an IRLC is positive (negative) if the prevailing interest rate is lower (higher) than the IRLC rate. Therefore, an increase in the closing ratio (i.e., higher percentage of loans are estimated to close) will increase the gain or loss. The closing ratio is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. The closing ratio is computed by our secondary marketing system using historical data and the ratio is periodically reviewed by the Company’s Secondary Marketing Department of the Mortgage Banking Division for reasonableness. |
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The unobservable input used in the fair value measurement of the Company’s interest rate swap agreements is the credit factor. This factor represents the risk that a counterparty is either unable or unwilling to settle a transaction in accordance with the underlying contractual terms. A significant increase (decrease) in the credit factor could result in a significantly lower (higher) fair value measurement. The credit factor is determined by the Treasury Division based on the risk rating assigned to each counterparty in which the Company holds a net asset position. The Company’s Credit Policy Committee periodically reviews and approves the Expected Default Frequency of the Economic Capital Model for Credit Risk. The Expected Default Frequency is used as the credit factor for interest rate swap agreements. |
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Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis |
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The Company may be required periodically to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. The following table represents the assets measured at fair value on a nonrecurring basis as of March 31, 2015 and December 31, 2014. |
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(dollars in thousands) | Fair Value | | Net Carrying | | | Valuation | | | | | | | | | | | |
Hierarchy | Amount | Allowance | | | | | | | | | | |
31-Mar-15 | | | | | | | | | | | | | | | |
Mortgage Servicing Rights - amortization method | Level 3 | | $ | 21,366 | | | $ | 77 | | | | | | | | | | | |
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Foreclosed Real Estate | Level 3 | | 2,095 | | | 354 | | | | | | | | | | | |
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31-Dec-14 | | | | | | | | | | | | | | | |
Mortgage Servicing Rights - amortization method | Level 3 | | $ | 22,091 | | | $ | 57 | | | | | | | | | | | |
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Foreclosed Real Estate | Level 3 | | 2,311 | | | 89 | | | | | | | | | | | |
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The write-down of mortgage servicing rights was primarily due to changes in certain key assumptions used to estimate fair value. As previously mentioned, all of the Company's mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation. In addition, the Company's foreclosed real estate was reduced by an impairment charge related to the Company's revised fair value estimate, deemed a Level 3 measurement, of one commercial property based on a recent appraisal and management judgment. |
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Fair Value Option |
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The Company elected the fair value option for all residential mortgage loans held for sale originated on or after October 1, 2011. This election allows for a more effective offset of the changes in fair values of the loans held for sale and the derivative financial instruments used to financially hedge them without having to apply complex hedge accounting requirements. As noted above, the fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets. |
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The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company’s residential mortgage loans held for sale as of March 31, 2015 and December 31, 2014. |
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(dollars in thousands) | Aggregate Fair Value | | | Aggregate Unpaid Principal | | | Aggregate Fair Value | | | | | | | |
Less Aggregate | | | | | | |
Unpaid Principal | | | | | | |
31-Mar-15 | | | | | | | | | | | | | | | | |
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Loans Held for Sale | $ | 1,951 | | | | $ | 1,831 | | | | $ | 120 | | | | | | | |
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31-Dec-14 | | | | | | | | | | | | | | | | |
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Loans Held for Sale | $ | 5,136 | | | | $ | 4,740 | | | | $ | 396 | | | | | | | |
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Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of mortgage banking income in the Company’s consolidated statements of income. For the three months ended March 31, 2015 and 2014, the net gains or losses from the change in fair value of the Company’s residential mortgage loans held for sale were not material. |
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Financial Instruments Not Recorded at Fair Value on a Recurring Basis |
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The assumptions used below are expected to approximate those that market participants would use in valuing these financial instruments. |
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Investment Securities Held-to-Maturity |
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The fair value of the Company’s investment securities held-to-maturity was primarily measured using information from a third-party pricing service. Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury as quoted prices were available, unadjusted, for identical securities in active markets. If quoted prices were not available, fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes. |
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Loans |
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The fair value of the Company’s loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans were first segregated by type such as commercial, real estate, and consumer, and were then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments. |
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Time Deposits |
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The fair values of the Company’s time deposits were estimated using discounted cash flow analyses. The discount rates used were based on rates currently offered for deposits with similar remaining maturities. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value. |
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Securities Sold Under Agreements to Repurchase |
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The fair value of the Company’s securities sold under agreements to repurchase was calculated using discounted cash flow analyses, applying discount rates currently offered for new agreements with similar remaining maturities and considering the Company’s non-performance risk. |
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Other Debt |
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The fair value of the Company’s other debt was calculated using a discounted cash flow approach and applying discount rates currently offered for new notes with similar remaining maturities and considering the Company’s non-performance risk. |
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The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of March 31, 2015 and December 31, 2014. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. |
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| | | | | Fair Value Measurements |
| Carrying | | | | | Quoted Prices | | | Significant | | | Significant | |
in Active | Other | Unobservable |
Markets for | Observable | Inputs |
Identical | Inputs | |
Assets or | | |
Liabilities | | |
(dollars in thousands) | Amount | | | Fair Value | | | (Level 1) | | | (Level 2) | | | (Level 3) | |
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31-Mar-15 | | | | | | | | | | | | | | |
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Financial Instruments - Assets | | | | | | | | | | | | | | |
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Investment Securities Held-to-Maturity | $ | 4,306,353 | | | $ | 4,378,007 | | | $ | 523,372 | | | $ | 3,854,635 | | | $ | — | |
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Loans 1 | 6,825,344 | | | 7,373,867 | | | — | | | — | | | 7,373,867 | |
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Financial Instruments - Liabilities | | | | | | | | | | | | | | |
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Time Deposits | 1,308,932 | | | 1,312,619 | | | — | | | 1,312,619 | | | — | |
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Securities Sold Under Agreements to Repurchase | 672,329 | | | 744,649 | | | — | | | 744,649 | | | — | |
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Other Debt 2 | 163,005 | | | 164,269 | | | — | | | 164,269 | | | — | |
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31-Dec-14 | | | | | | | | | | | | | | |
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Financial Instruments - Assets | | | | | | | | | | | | | | |
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Investment Securities Held-to-Maturity | $ | 4,466,679 | | | $ | 4,504,495 | | | $ | 499,616 | | | $ | 4,004,879 | | | $ | — | |
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Loans 1 | 6,542,719 | | | 7,048,757 | | | — | | | — | | | 7,048,757 | |
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Financial Instruments - Liabilities | | | | | | | | | | | | | | |
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Time Deposits | 1,434,001 | | | 1,437,064 | | | — | | | 1,437,064 | | | — | |
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Securities Sold Under Agreements to Repurchase | 688,601 | | | 758,781 | | | — | | | 758,781 | | | — | |
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Other Debt 2 | 163,005 | | | 163,911 | | | — | | | 163,911 | | | — | |
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1 | Net of unearned income and the Allowance. | | | | | | | | | | | | | | | | | | |
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2 | Excludes capitalized lease obligations. | | | | | | | | | | | | | | | | | | |