| Assets and Liabilities Measured at Fair Value on Recurring Basis |
As of June 30, 2017 and December 31, 2016, assets and liabilities measured at fair value on a recurring basis are as follows:
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Level 1 |
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Level 2 |
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Level 3 |
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Quoted Prices in
Active Markets
for Identical
Assets
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Significant
Observable
Inputs with No
Active Market
with Identical
Characteristics
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Significant
Unobservable
Inputs
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Balance |
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(in thousands) |
June 30, 2017 |
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Assets: |
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Securities available for sale: |
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Mortgage-backed securities |
$ |
— |
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$ |
279,765 |
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$ |
— |
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|
$ |
279,765 |
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Collateralized mortgage obligations |
— |
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|
91,438 |
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— |
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|
91,438 |
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U.S. government agency securities |
— |
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|
7,457 |
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— |
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|
7,457 |
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SBA loan pools securities |
— |
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|
3,895 |
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— |
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3,895 |
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Municipal bonds-tax exempt |
— |
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|
161,063 |
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— |
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|
161,063 |
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Municipal bonds-taxable |
— |
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|
537 |
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— |
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|
537 |
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Corporate bonds |
— |
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|
5,022 |
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— |
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|
5,022 |
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U.S. treasury securities |
154 |
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— |
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— |
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|
154 |
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Mutual funds |
22,515 |
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— |
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— |
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|
22,515 |
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Total securities available for sale |
$ |
22,669 |
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|
$ |
549,177 |
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$ |
— |
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$ |
571,846 |
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December 31, 2016 |
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Assets: |
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Securities available for sale: |
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Mortgage-backed securities |
$ |
— |
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|
$ |
229,630 |
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$ |
— |
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|
$ |
229,630 |
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Collateralized mortgage obligations |
— |
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|
76,451 |
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— |
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|
76,451 |
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U.S. government agency securities |
— |
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|
7,441 |
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— |
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|
7,441 |
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SBA loan pools securities |
— |
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|
4,146 |
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— |
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|
4,146 |
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Municipal bonds-tax exempt |
— |
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|
158,030 |
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— |
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|
158,030 |
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Municipal bonds-taxable |
— |
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|
13,701 |
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— |
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13,701 |
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Corporate bonds |
— |
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|
5,015 |
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— |
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5,015 |
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U.S. treasury securities |
156 |
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— |
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— |
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|
156 |
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Mutual funds |
22,394 |
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— |
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— |
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22,394 |
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Total securities available for sale |
$ |
22,550 |
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$ |
494,414 |
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$ |
— |
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$ |
516,964 |
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| Assets and Liabilities Measured at Fair Value on Non-Recurring Basis |
As of June 30, 2017 and December 31, 2016, assets and liabilities measured at fair value on a non-recurring basis are as follows:
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Level 1 |
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Level 2 |
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Level 3 |
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|
Quoted Prices in
Active Markets
for Identical
Assets
|
|
Significant
Observable
Inputs With No
Active Market
With Identical
Characteristics
|
|
Significant
Unobservable
Inputs
|
|
Loss During the Six Months Ended June 30, 2017 |
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(in thousands) |
June 30, 2017 |
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Assets: |
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Impaired loans (excluding PCI loans) (1)
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$ |
— |
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$ |
3,811 |
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$ |
2,157 |
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$ |
1,379 |
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OREO (2)
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— |
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4,321 |
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— |
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— |
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Level 1 |
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Level 2 |
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Level 3 |
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|
Quoted Prices in
Active Markets
for Identical
Assets
|
|
Significant
Observable
Inputs With No
Active Market
With Identical
Characteristics
|
|
Significant
Unobservable
Inputs
|
|
Loss During the Twelve Months Ended December 31, 2016 |
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(in thousands) |
December 31, 2016 |
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Assets: |
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Impaired loans (excluding PCI loans) (3)
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$ |
— |
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$ |
15,257 |
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$ |
6,767 |
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$ |
868 |
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OREO (4)
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— |
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7,484 |
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— |
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— |
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(1) |
Consist of real estate loans of $3.8 million and commercial and industrial loans of $2.2 million.
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(2) |
Consist of properties obtained from the foreclosure of commercial property loans of $2.6 million and residential property loans of $1.7 million.
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(3) |
Consist of real estate loans of $17.8 million, commercial and industrial loans of $3.8 million, and consumer loans of $419,000.
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(4) |
Consist of properties obtained from the foreclosure of commercial property loans of $5.4 million and residential property loans of $2.1 million.
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| Estimated Fair Values of Financial Instruments |
The estimated fair values of financial instruments were as follows:
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June 30, 2017 |
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Carrying |
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Fair Value |
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Amount |
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Level 1 |
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Level 2 |
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Level 3 |
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(in thousands) |
Financial assets: |
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Cash and due from banks |
138,507 |
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|
138,507 |
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— |
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— |
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Securities available for sale |
571,846 |
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|
22,669 |
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|
549,177 |
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— |
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Loans and leases receivable, net of allowance for loan and lease losses |
4,039,304 |
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— |
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— |
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3,989,950 |
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Loans held for sale |
10,949 |
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— |
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10,949 |
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— |
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Accrued interest receivable |
11,167 |
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|
11,167 |
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— |
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— |
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FHLB stock |
16,385 |
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— |
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16,385 |
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— |
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Financial liabilities: |
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Noninterest-bearing deposits |
1,260,929 |
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— |
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1,260,929 |
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— |
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Interest-bearing deposits |
2,998,244 |
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— |
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— |
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2,965,188 |
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Borrowings |
137,011 |
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— |
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— |
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137,011 |
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Accrued interest payable |
3,432 |
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|
3,432 |
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— |
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— |
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Off-balance sheet items: |
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Commitments to extend credit |
313,290 |
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— |
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— |
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313,290 |
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Standby letters of credit |
19,249 |
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— |
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— |
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19,249 |
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Commercial letters of credit |
14,890 |
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— |
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— |
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14,890 |
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December 31, 2016 |
|
Carrying |
|
Fair Value |
|
Amount |
|
Level 1 |
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Level 2 |
|
Level 3 |
|
(in thousands) |
Financial assets: |
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Cash and due from banks |
$ |
147,235 |
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$ |
147,235 |
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$ |
— |
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$ |
— |
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Securities available for sale |
516,964 |
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|
22,550 |
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|
494,414 |
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— |
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Loans and leases receivable, net of allowance for loan and lease losses |
3,812,340 |
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— |
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— |
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3,789,579 |
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Loans held for sale |
9,316 |
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— |
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9,316 |
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— |
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Accrued interest receivable |
10,987 |
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|
10,987 |
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— |
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— |
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FHLB stock |
16,385 |
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— |
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16,385 |
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— |
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Financial liabilities: |
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Noninterest-bearing deposits |
1,203,240 |
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— |
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1,203,240 |
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— |
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Interest-bearing deposits |
2,606,497 |
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— |
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— |
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2,541,929 |
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Borrowings |
333,978 |
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— |
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— |
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|
333,978 |
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Accrued interest payable |
2,567 |
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|
2,567 |
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— |
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— |
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Off-balance sheet items: |
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Commitments to extend credit |
310,987 |
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— |
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— |
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|
310,987 |
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Standby letters of credit |
15,669 |
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— |
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— |
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|
15,669 |
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Commercial letters of credit |
4,215 |
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— |
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— |
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4,215 |
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