Rendering

Component: (Network and Table)
Network
2319301 - Disclosure - Fair Value (Tables)
(http://www.capitalbank-us.com/role/FairValueTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Fair Value Disclosures [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Fair Value Disclosures [Abstract]
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 are summarized below:
(Dollars in thousands)
 
 
 
Fair Value Measurement Using:
 
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
 
Trading securities
 
$
3,791

 
$

 
$
3,791

 
$

Available-for-sale securities:
 
 
 
 
 
 
 
 
Mortgage-backed securities—residential
 
868,922

 

 
868,922

 

State and political subdivisions - tax exempt
 
11,077

 

 
11,077

 

Industrial revenue bonds
 
3,298

 

 

 
3,298

Corporate bonds
 
28,953

 

 
28,953

 

Available-for-sale securities
 
$
912,250

 
$

 
$
908,952

 
$
3,298

Gross asset value of derivatives
 
$
1,078

 
$

 
$
1,078

 
$

Liabilities
 
 
 
 
 
 
 
 
Gross liability value of derivatives
 
$
1,354

 
$

 
$
1,354

 
$

There were no transfers of assets and liabilities between levels of the fair value hierarchy during the year ended December 31, 2016.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 are summarized below:
(Dollars in thousands)
 
 
 
Fair Value Measurement Using:
 
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
 
 
Trading securities
 
$
3,013

 
$

 
$
3,013

 
$

Available-for-sale securities:
 
 
 
 
 
 
 
 
Mortgage-backed securities—residential
 
611,137

 

 
611,137

 

Industrial revenue bonds
 
3,437

 

 

 
3,437

Corporate bonds
 
22,755

 

 
22,755

 

Available-for-sale securities
 
$
637,329

 
$

 
$
633,892

 
$
3,437

Gross asset value of derivatives
 
$
933

 
$

 
$
933

 
$

Liabilities
 
 
 
 
 
 
 
 
Gross liability value of derivatives
 
$
110

 
$

 
$
110

 
$


 
 
Fair Value Measurements on Recurring Basis Using Significant Unobservable Inputs (Level 3)
The tables below present the activity and income statement classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended and held at December 31, 2016:

(Dollars in thousands)
 
 
Fair Value Measurement Using Significant
Unobservable Inputs (Level 3)
 
 
 
Industrial
Revenue
Bonds
Beginning balance, January 1, 2016
 
 
$
3,437

Principal reduction
 
 
(170
)
Included in other comprehensive income
 
 
31

Ending balance, December 31, 2016
 
 
$
3,298


The tables below present the activity and income statement classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended and held at December 31, 2015:

(Dollars in thousands)
 
Fair Value Measurement Using Significant
Unobservable Inputs (Level 3)
 
 
Industrial
Revenue
Bonds
Beginning balance, January 1, 2015
 
$
3,690

Principal reduction
 
(170
)
Included in other comprehensive income
 
(83
)
Ending balance, December 31, 2015
 
$
3,437



 
 
Quantitative Information About Recurring Level 3 Fair Value Measurements
(Dollars in thousands)
 
Fair Value at
December 31, 2016
 
Valuation Technique
 
Significant
Unobservable
Input
 
Range
Industrial revenue bonds
 
$
3,298

 
Discounted cash flow
 
Discount rate
 
3.31% - 3.35%
 
 
 
 
 
 
Illiquidity factor
 
0.5%
(Dollars in thousands)
 
Fair Value at
December 31, 2015
 
Valuation Technique
 
Significant
Unobservable
Input
 
Range
Industrial revenue bonds
 
$
3,437

 
Discounted cash flow
 
Discount rate
 
3.75% - 3.78%
 
 
 
 
 
 
Illiquidity factor
 
0.5%
 
 
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2016 are summarized below:
(Dollars in thousands)
 
Fair Value Measurement Using:
 
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
Other real estate owned
 
$

 
$

 
$
41,168

Other repossessed assets
 
163

 

 

Impaired loans
 

 

 
1,420

Other real estate owned measured at fair value as of December 31, 2016 had a gross amount of $50.0 million, less valuation allowances totaling $8.9 million and is made up of $35.5 million commercial properties and $5.7 million residential properties. Other repossessed assets are primarily comprised of repossessed vehicles and equipment and are measured at fair value as of the date of repossession.
Assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2015 are summarized below:
(Dollars in thousands)
 
Fair Value Measurement Using:
 
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets
 
 
 
 
 
 
Other real estate owned
 
$

 
$

 
$
34,645

Other repossessed assets
 

 
375

 

Impaired loans
 

 

 
254

 
 
Quantitative Information About Nonrecurring Level 3 Fair Value Measurements
(Dollars in thousands)
 
Fair Value at
December 31, 2016
 
Valuation Technique
 
Significant Unobservable Input
 
Weighted Average
Other real estate owned
 
$
41,168

 
Fair value of property
 
Appraised value less cost to sell
 
7.91%
Impaired loans
 
1,420

 
Fair value of collateral
 
Appraised value less cost to sell
 
7.47%

(Dollars in thousands)
 
Fair Value at
December 31, 2015
 
Valuation Technique
 
Significant Unobservable Input
 
Weighted Average
Other real estate owned
 
$
34,645

 
Fair value of property
 
Appraised value less cost to sell
 
7.86%
Impaired loans
 
254

 
Fair value of collateral
 
Appraised value less cost to sell
 
7.29%
 
 
Carrying Amounts and Estimated Fair Values of Financial Instruments
Carrying amount and estimated fair values of financial instruments were as follows:
(Dollars in thousands)
 
Fair Value Measurement
December 31, 2016
 
Carrying Value
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
309,055

 
$
309,055

 
$
309,055

 
$

 
$

Trading securities
 
3,791

 
3,791

 

 
3,791

 

Investment securities available-for-sale
 
912,250

 
912,250

 

 
908,952

 
3,298

Investment securities held-to-maturity
 
463,959

 
460,911

 

 
460,911

 

Loans, net
 
7,363,127

 
7,395,128

 

 
12,874

 
7,382,254

Other earning assets (1)
 
32,050

 
32,050

 

 

 
32,050

Gross asset value of derivatives
 
1,078

 
1,078

 

 
1,078

 

Total financial assets
 
$
9,085,310

 
$
9,114,263

 
$
309,055

 
$
1,387,606

 
$
7,417,602

Financial Liabilities
 
 
 
 
 
 
 
 
 
 
Non-contractual deposits
 
$
5,743,316

 
$
5,743,316

 
$

 
$
5,743,316

 
$

Contractual deposits
 
2,137,312

 
2,121,519

 

 
2,121,519

 

Federal Home Loan Bank advances
 
545,701

 
546,023

 

 
546,023

 

Short-term borrowings
 
19,157

 
19,154

 

 
19,154

 

Subordinated debentures
 
116,456

 
114,593

 

 

 
114,593

Gross liability value of derivatives
 
1,354

 
1,354

 

 
1,354

 

Total financial liabilities
 
$
8,563,296

 
$
8,545,959

 
$

 
$
8,431,366

 
$
114,593


(1) Includes Federal Home Loan Bank stock.
(Dollars in thousands)
 
Fair Value Measurement
December 31, 2015
 
Carrying Value
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial Assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
144,696

 
$
144,696

 
$
144,696

 
$

 
$

Trading securities
 
3,013

 
3,013

 

 
3,013

 

Investment securities available-for-sale
 
637,329

 
637,329

 

 
633,892

 
3,437

Investment securities held-to-maturity
 
472,505

 
475,134

 

 
475,134

 

Loans, net
 
5,587,682

 
5,636,518

 

 
10,569

 
5,625,949

FDIC indemnification asset
 
6,725

 
6,725

 

 

 
6,725

Receivable from FDIC
 
678

 
678

 

 
678

 

Other earning assets (1)
 
25,736

 
25,736

 

 

 
25,736

Gross asset value of derivatives
 
933

 
933

 

 
933

 

Total financial assets
 
$
6,879,297

 
$
6,930,762

 
$
144,696

 
$
1,124,219

 
$
5,661,847

Financial Liabilities
 
 
 
 
 
 
 
 
 
 
Non-contractual deposits
 
$
4,112,892

 
$
4,112,892

 
$

 
$
4,112,892

 
$

Contractual deposits
 
1,747,318

 
1,735,587

 

 
1,735,587

 

Federal Home Loan Bank advances
 
460,898

 
461,128

 

 
461,128

 

Short-term borrowings
 
12,410

 
12,410

 

 
12,410

 

Subordinated debentures
 
85,777

 
92,517

 

 

 
92,517

Gross liability value of derivatives
 
110

 
110

 

 
110

 

Total financial liabilities
 
$
6,419,405

 
$
6,414,644

 
$

 
$
6,322,127

 
$
92,517

  
(1) Includes Federal Home Loan Bank stock.