Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HERITAGE FINANCIAL CORP /WA/ | |
Entity Central Index Key | 1,046,025 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,967,410 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash on hand and in banks | $ 58,930 | $ 74,028 |
Interest earning deposits | 83,547 | 47,608 |
Cash and cash equivalents | 142,477 | 121,636 |
Other interest earning deposits | 5,244 | 10,126 |
Investment securities available for sale, at fair value | 703,093 | 742,846 |
Investment securities held to maturity (fair value of $34,023 and $36,874, respectively) | 32,832 | 35,814 |
Loans held for sale | 7,981 | 5,582 |
Loans receivable, net | 2,404,044 | 2,251,077 |
Allowance for loan losses | (29,004) | (27,729) |
Total loans receivable, net | 2,375,040 | 2,223,348 |
FDIC indemnification asset | 0 | 1,116 |
Other real estate owned | 2,071 | 3,355 |
Premises and equipment, net | 63,356 | 64,938 |
Federal Home Loan Bank stock, at cost | 4,148 | 12,188 |
Bank owned life insurance | 60,945 | 35,176 |
Accrued interest receivable | 10,831 | 9,836 |
Prepaid expenses and other assets | 59,019 | 61,871 |
Other intangible assets, net | 9,312 | 10,889 |
Goodwill | 119,029 | 119,029 |
Total assets | 3,595,378 | 3,457,750 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Deposits | 3,054,198 | 2,906,331 |
Junior subordinated debentures | 19,351 | 19,082 |
Securities sold under agreement to repurchase | 22,829 | 32,181 |
Accrued expenses and other liabilities | 30,304 | 45,650 |
Total liabilities | 3,126,682 | 3,003,244 |
Stockholders’ equity: | ||
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding at September 30, 2015 and December 31, 2014 | 0 | 0 |
Common stock, no par value, 50,000,000 shares authorized; 29,967,555 and 30,259,838 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 358,927 | 364,741 |
Retained earnings | 104,762 | 86,387 |
Accumulated other comprehensive income, net | 5,007 | 3,378 |
Total stockholders’ equity | 468,696 | 454,506 |
Total liabilities and stockholders’ equity | $ 3,595,378 | $ 3,457,750 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 34,023 | $ 36,874 |
Preferred stock, par value (in usd per share) | ||
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 29,967,555 | 30,259,838 |
Common stock, shares outstanding | 29,967,555 | 30,259,838 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 30,179 | $ 31,841 | $ 91,213 | $ 75,738 |
Taxable interest on investment securities | 2,187 | 2,212 | 7,199 | 4,663 |
Nontaxable interest on investment securities | 1,056 | 855 | 3,137 | 1,928 |
Interest and dividends on other interest earning assets | 62 | 123 | 173 | 338 |
Total interest income | 33,484 | 35,031 | 101,722 | 82,667 |
INTEREST EXPENSE: | ||||
Deposits | 1,335 | 1,534 | 3,961 | 3,685 |
Junior subordinated debentures | 195 | 171 | 627 | 285 |
Other borrowings | 14 | 19 | 50 | 52 |
Total interest expense | 1,544 | 1,724 | 4,638 | 4,022 |
Net interest income | 31,940 | 33,307 | 97,084 | 78,645 |
Provision for loan losses | 851 | 594 | 3,247 | 1,743 |
Net interest income after provision for loan losses | 31,089 | 32,713 | 93,837 | 76,902 |
NONINTEREST INCOME: | ||||
Service charges and other fees | 3,593 | 3,524 | 10,575 | 7,700 |
Merchant Visa income, net | 66 | 278 | 458 | 839 |
Change in FDIC indemnification asset | 0 | (647) | (497) | (575) |
Gain (loss) on sale of investment securities, net | 393 | (13) | 1,362 | 254 |
Gain on sale of loans, net | 1,411 | 742 | 3,828 | 975 |
Other income | 4,081 | 1,599 | 9,043 | 3,377 |
Total noninterest income | 9,544 | 5,483 | 24,769 | 12,570 |
NONINTEREST EXPENSE: | ||||
Compensation and employee benefits | 14,918 | 15,579 | 42,984 | 36,369 |
Occupancy and equipment | 3,970 | 3,978 | 11,511 | 9,412 |
Data processing | 2,398 | 1,978 | 5,950 | 6,977 |
Marketing | 899 | 841 | 2,595 | 1,843 |
Professional services | 894 | 1,113 | 2,602 | 5,173 |
State and local taxes | 619 | 576 | 1,808 | 1,378 |
Impairment loss on investment of securities, net | 0 | 0 | 0 | 45 |
Federal deposit insurance premium | 499 | 403 | 1,537 | 1,115 |
Other real estate owned, net | (5) | 650 | 854 | 915 |
Amortization of intangible assets | 523 | 603 | 1,577 | 1,248 |
Other expense | 2,607 | 2,642 | 8,021 | 5,661 |
Total noninterest expense | 27,322 | 28,363 | 79,439 | 70,136 |
Income before income taxes | 13,311 | 9,833 | 39,167 | 19,336 |
Income tax expense | 3,819 | 2,765 | 11,171 | 5,577 |
Net income | $ 9,492 | $ 7,068 | $ 27,996 | $ 13,759 |
Basic earnings per common share (in usd per share) | $ 0.32 | $ 0.23 | $ 0.93 | $ 0.57 |
Diluted earnings per common share (in usd per share) | 0.32 | 0.23 | 0.93 | 0.57 |
Dividends declared per common share (in usd per share) | $ 0.11 | $ 0.09000 | $ 0.32 | $ 0.25 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9,492 | $ 7,068 | $ 27,996 | $ 13,759 |
Change in fair value of securities available for sale, net of tax of $1,657, $(744), $1,256 and $663, respectively | 3,064 | (1,384) | 2,324 | 1,231 |
Reclassification adjustment for net gain from sale of investment securities included in income, net of tax of $(138), $4, $(478) and $(89), respectively | (255) | 8 | (884) | (166) |
Accretion of other-than-temporary impairment on investment securities, net of tax of $0, $9, $4 and $27, respectively | 0 | 13 | 11 | 43 |
Reclassification of other-than-temporary impairment on securities from sale of investment securities, net of tax $0, $0, $99, $0 | 0 | 0 | 178 | 0 |
Other comprehensive income (loss) | 2,809 | (1,363) | 1,629 | 1,108 |
Comprehensive income | $ 12,301 | $ 5,705 | $ 29,625 | $ 14,867 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in fair value of securities available for sale, tax | $ 1,657 | $ (744) | $ 1,256 | $ 663 |
Reclassification adjustment of net gain from sale of investment securities included in income, tax | (138) | 4 | (478) | (89) |
Accretion of other-than-temporary impairment on investment securities, tax | 0 | 9 | 4 | 27 |
Reclassification of other-than-temporary impairment on securities from sale of investment securities, net of tax | $ 0 | $ 0 | $ 99 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net |
Beginning balance, shares at Dec. 31, 2013 | 16,211,000 | |||
Beginning balance at Dec. 31, 2013 | $ 215,762 | $ 138,659 | $ 78,265 | $ (1,162) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Restricted and unrestricted stock awards issued, net of forfeitures, shares | 124,000 | |||
Restricted and unrestricted stock awards issued, net of forfeitures | 0 | |||
Stock option compensation expense | $ 20 | $ 20 | ||
Exercise of stock options (including excess tax benefits from nonqualified stock options), shares | 70,854 | 71,000 | ||
Exercise of stock options (including excess tax benefits from nonqualified stock options) | $ 766 | $ 766 | ||
Restricted stock compensation expense | 896 | 896 | ||
Excess tax benefits from restricted stock | 60 | $ 60 | ||
Common stock repurchased, shares | (127,000) | |||
Common stock repurchased | (2,119) | $ (2,119) | ||
Net income | 13,759 | 13,759 | ||
Other comprehensive income (loss), net of tax | 1,108 | 1,108 | ||
Common stock issued in business combination, shares | 13,973,000 | |||
Common stock issued in business combination | 226,724 | $ 226,724 | ||
Cash dividends declared on common stock | (5,325) | (5,325) | ||
Ending balance, shares at Sep. 30, 2014 | 30,252,000 | |||
Ending balance at Sep. 30, 2014 | 451,651 | $ 365,006 | 86,699 | (54) |
Beginning balance, shares at Dec. 31, 2014 | 30,260,000 | |||
Beginning balance at Dec. 31, 2014 | 454,506 | $ 364,741 | 86,387 | 3,378 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Restricted and unrestricted stock awards issued, net of forfeitures, shares | 118,000 | |||
Restricted and unrestricted stock awards issued, net of forfeitures | $ 0 | |||
Exercise of stock options (including excess tax benefits from nonqualified stock options), shares | 53,198 | 53,000 | ||
Exercise of stock options (including excess tax benefits from nonqualified stock options) | $ 686 | $ 686 | ||
Restricted stock compensation expense | 1,125 | 1,125 | ||
Excess tax benefits from restricted stock | 105 | $ 105 | ||
Common stock repurchased, shares | (464,000) | |||
Common stock repurchased | (7,730) | $ (7,730) | ||
Net income | 27,996 | 27,996 | ||
Other comprehensive income (loss), net of tax | 1,629 | 1,629 | ||
Common stock issued in business combination | 0 | |||
Cash dividends declared on common stock | (9,621) | (9,621) | ||
Ending balance, shares at Sep. 30, 2015 | 29,967,000 | |||
Ending balance at Sep. 30, 2015 | $ 468,696 | $ 358,927 | $ 104,762 | $ 5,007 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | Jul. 22, 2015 | Apr. 22, 2015 | Jan. 28, 2015 | Nov. 11, 2014 | Oct. 23, 2014 | Jul. 24, 2014 | Mar. 27, 2014 | Jan. 29, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Cash dividends declared on common stock (in usd per share) | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.16 | $ 0.09 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.11 | $ 0.09000 | $ 0.32 | $ 0.25 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Investment in low income housing tax partnership | $ 0 | $ 4,400 |
Purchase of investment securities available for sale not settled | 0 | 9,365 |
Cash flows from operating activities: | ||
Net income | 27,996 | 13,759 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,486 | 9,043 |
Changes in net deferred loan fees, net of amortization | (1,257) | (1,200) |
Provision for loan losses | 3,247 | 1,743 |
Net change in accrued interest receivable, FDIC indemnification asset, prepaid expenses and other assets, accrued expenses and other liabilities | (4,085) | 209 |
Restricted and unrestricted stock compensation expense | 1,125 | 896 |
Stock option compensation expense | 0 | 20 |
Excess tax benefits from stock options and restricted and unrestricted stock | (125) | (60) |
Amortization of intangible assets | 1,577 | 1,248 |
Gain on sale of investment securities, net | (1,362) | (254) |
Impairment loss on investment of securities, net | 0 | 45 |
Origination of loans held for sale | (102,310) | (35,046) |
Gain on sale of loans, net | (3,828) | (975) |
Proceeds from sale of loans held for sale | 103,739 | 35,303 |
Earnings on bank owned life insurance | (769) | (241) |
Valuation adjustment on other real estate owned | 415 | 0 |
Loss on sale of other real estate owned, net | 94 | 312 |
Gain on termination of FDIC shared-loss agreements | (1,747) | 0 |
(Gain) loss on sale or write-off of furniture, equipment and leasehold improvements | (1) | 466 |
Net cash provided by operating activities | 33,195 | 25,268 |
Cash flows from investing activities: | ||
Loans originated, net of principal payments | (156,106) | 30,363 |
Maturities of other interest earning deposits | 4,836 | 2,487 |
Maturities of investment securities available for sale | 91,915 | 37,480 |
Maturities of investment securities held to maturity | 1,897 | 1,003 |
Purchase of investment securities available for sale | (158,048) | (251,200) |
Purchase of investment securities held to maturity | 0 | (3,313) |
Purchase of premises and equipment | (1,409) | (3,330) |
Proceeds from sales of other real estate owned | 3,199 | 5,173 |
Proceeds from sales of investment securities available for sale | 102,937 | 158,640 |
Proceeds from sales of investment securities held to maturity | 972 | 0 |
Proceeds from redemption of Federal Home Loan Bank stock | 8,040 | 442 |
Proceeds from sale of premises and equipment | 10 | 835 |
Purchase of bank owned life insurance | (25,000) | 0 |
Investment in new market tax credit partnership | 0 | (25,000) |
Investment in low-income housing tax credit partnership | (442) | 0 |
Net cash used for termination of FDIC shared-loss agreements | (7,110) | 0 |
Net cash received from acquisitions | 0 | 31,564 |
Net cash used in investing activities | (134,309) | (14,856) |
Cash flows from financing activities: | ||
Net increase in deposits | 147,867 | 69,986 |
Common stock cash dividends paid | (9,621) | (5,325) |
Net (decrease) increase in securities sold under agreement to repurchase | (9,352) | 5,970 |
Proceeds from exercise of stock options | 666 | 766 |
Excess tax benefits from stock options and restricted and unrestricted stock | 125 | 60 |
Repurchase of common stock | (7,730) | (2,119) |
Net cash provided by financing activities | 121,955 | 69,338 |
Net increase in cash and cash equivalents | 20,841 | 79,750 |
Cash and cash equivalents at beginning of period | 121,636 | 130,400 |
Cash and cash equivalents at end of period | 142,477 | 210,150 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 4,841 | 3,667 |
Cash paid for income taxes | 12,286 | 11,952 |
Supplemental non-cash disclosures of cash flow information: | ||
Transfers of loans receivable to other real estate owned | 2,424 | 677 |
Common stock issued for business combinations | 0 | 226,724 |
Assets acquired (liabilities assumed) in acquisitions: | ||
Investment securities available for sale | 0 | 458,312 |
Loans held for sale | 0 | 3,923 |
Loans receivable | 0 | 895,978 |
Loans receivable, covered at merger date | 0 | 107,050 |
Other real estate owned | 0 | 7,121 |
Premises and equipment | 0 | 31,776 |
Federal Home Loan Bank stock | 0 | 7,064 |
FDIC indemnification asset | 0 | 7,174 |
Accrued interest receivable | 0 | 4,943 |
Bank owned life insurance | 0 | 32,519 |
Prepaid expenses and other assets | 0 | 15,194 |
Other intangible assets | 0 | 11,194 |
Deposits | 0 | (1,433,894) |
Junior subordinated debentures | 0 | (18,937) |
Accrued expenses and other liabilities | $ 0 | $ (23,803) |
Description of Business, Basis
Description of Business, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements | Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements (a) Description of Business Heritage Financial Corporation ("Heritage" or the “Company”) is a bank holding company that was incorporated in the State of Washington in August 1997. The Company is primarily engaged in the business of planning, directing and coordinating the business activities of its wholly-owned subsidiary, Heritage Bank (the “Bank”). The Bank is a Washington-chartered commercial bank and its deposits are insured by the FDIC under the Deposit Insurance Fund. The Bank is headquartered in Olympia, Washington and conducts business from its 67 branch offices located throughout Washington State and the greater Portland, Oregon area. The Bank’s business consists primarily of commercial lending and deposit relationships with small businesses and their owners in its market areas and attracting deposits from the general public. The Bank also makes real estate construction and land development loans and consumer loans and originates first mortgage loans on residential properties primarily located in its market area. The Company has expanded its footprint through mergers and acquisitions. The largest of these transactions was the strategic merger with Washington Banking Company (“Washington Banking”) and its wholly owned subsidiary bank, Whidbey Island Bank ("Whidbey"). Effective May 1, 2014, Washington Banking merged with and into Heritage and Whidbey merged with and into Heritage Bank and this transaction is referred to herein as the "Washington Banking Merger". In connection with the Washington Banking Merger, Heritage also acquired as a subsidiary the Washington Banking Master Trust, a Delaware statutory business trust. Pursuant to the merger agreement, Heritage assumed the performance and observance of the covenants to be performed by Washington Banking under an indenture relating to $25.0 million in trust preferred securities issued in 2007 and the due and punctual payment of the principal of and premium and interest on such trust preferred securities. For additional information, see Note (8) Junior Subordinated Debentures. (b) Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. It is recommended that these unaudited Condensed Consolidated Financial Statements and accompanying Notes be read with the audited Consolidated Financial Statements and the accompanying Notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 (“ 2014 Annual Form 10-K”). In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. In preparing the unaudited Condensed Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. Management believes that the judgments, estimates and assumptions used in the preparation of the financial statements are appropriate based on the facts and circumstances at the time. Actual results, however, could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation. Specifically, the Company has eliminated the classification of "noncovered" and "covered" loans from the Condensed Consolidated Financial Statements based on the termination of the FDIC shared-loss agreements during the three months ended September 30, 2015. For more information on the termination agreement, see Note (5) Indemnification Asset. Accordingly, all loans receivable previously reported as "noncovered" and those previously reported as "covered" by FDIC shared-loss agreements have been combined and reclassified as "loans receivable" for all periods presented. Reclassifications had no effect on prior periods' net income or stockholders’ equity. (c) Significant Accounting Policies The significant accounting policies used in preparation of the Company's Condensed Consolidated Financial Statements are disclosed in the 2014 Annual Form 10-K. There have not been any material changes in the Company's significant accounting policies from those contained in the 2014 Annual Form 10-K. (d) Recently Issued Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU" or "Update") 2014-09 , Revenue from Contracts with Customers , was issued in May 2014. Under this Update, FASB created a new Topic 606 which is in response to a joint initiative of FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and international financial reporting standards that would: • Remove inconsistencies and weaknesses in revenue requirements. • Provide a more robust framework for addressing revenue issues. • Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. • Provide more useful information to users of financial statements through improved disclosure requirements. • Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The Update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. The Company is currently evaluating the impact that this Update will have on its Condensed Consolidated Financial Statements. FASB ASU 2014-11 , Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures , was issued in June 2014. This Update aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements, such as secured borrowings. The guidance eliminates sale accounting and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The Update requires new and expanded disclosures that are effective for interim or annual reporting periods beginning after December 15, 2014, with certain requirements applicable for periods beginning after March 31, 2015. The adoption of this Update did not have a material impact on the Company's Condensed Consolidated Financial Statements. FASB ASU 2015-14 , Revenue from Contracts with Customers , was issued in August 2015 and defers the effective date of the above-mentioned ASU 2014-09 for certain entities. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is now permitted, but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is a public business entity and will not early adopt as permitted in this Update. The Company is currently evaluating the impact that this Update will have on its Condensed Consolidated Financial Statements upon adoption. FASB ASU 2015-14 , Business Combinations (Topic 805) , was issued in September 2015. Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the Update requires that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The Update did not have an impact on the Company's Condensed Consolidated Financial Statements as of September 30, 2015. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk, and complement the Bank’s lending activities. Securities are classified as either available for sale or held to maturity when acquired. (a) Securities by Type and Maturity The amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities available for sale at the dates indicated were as follows: Securities Available for Sale September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 15,115 $ 47 $ — $ 15,162 Municipal securities 186,239 3,797 (267 ) 189,769 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 482,771 5,000 (807 ) 486,964 Corporate obligations 9,283 — (67 ) 9,216 Mutual funds and other equities 1,965 17 — 1,982 Total $ 695,373 $ 8,861 $ (1,141 ) $ 703,093 Securities Available for Sale December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 21,414 $ 44 $ (31 ) $ 21,427 Municipal securities 170,082 3,139 (184 ) 173,037 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 539,859 4,015 (1,475 ) 542,399 Corporate obligations 4,034 — (24 ) 4,010 Mutual funds and other equities 1,956 17 — 1,973 Total $ 737,345 $ 7,215 $ (1,714 ) $ 742,846 The amortized cost, gross unrecognized gains, gross unrecognized losses and fair values of investment securities held to maturity at the dates indicated were as follows: Securities Held to Maturity September 30, 2015 Amortized Cost Gross Gross Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 1,578 $ 169 $ — $ 1,747 Municipal securities 21,362 619 — 21,981 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 9,892 454 (51 ) 10,295 Total $ 32,832 $ 1,242 $ (51 ) $ 34,023 Securities Held to Maturity December 31, 2014 Amortized Cost Gross Gross Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 1,591 $ 167 $ — $ 1,758 Municipal securities 22,486 643 (11 ) 23,118 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 10,866 364 (74 ) 11,156 Private residential collateralized mortgage obligations 871 75 (104 ) 842 Total $ 35,814 $ 1,249 $ (189 ) $ 36,874 There were no securities classified as trading at September 30, 2015 or December 31, 2014 . The amortized cost and fair value of securities at September 30, 2015 , by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available for Sale Securities Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Due in one year or less $ 3,527 $ 3,534 $ 2,980 $ 2,989 Due after one year through three years 20,512 20,637 3,617 3,662 Due after three years through five years 41,714 42,327 6,747 7,066 Due after five years through ten years 159,618 162,025 16,370 17,168 Due after ten years 468,037 472,588 3,118 3,138 Investment securities with no stated maturities 1,965 1,982 — — Total $ 695,373 $ 703,093 $ 32,832 $ 34,023 (b) Unrealized Losses and Other-Than-Temporary Impairments Available for sale investment securities with unrealized losses as of September 30, 2015 and December 31, 2014 were as follows: Securities Available for Sale September 30, 2015 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Municipal securities $ 30,047 $ (260 ) $ 923 $ (7 ) $ 30,970 $ (267 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 56,641 (255 ) 49,605 (552 ) 106,246 (807 ) Corporate obligations 8,221 (54 ) 995 (13 ) 9,216 (67 ) Total $ 94,909 $ (569 ) $ 51,523 $ (572 ) $ 146,432 $ (1,141 ) Securities Available for Sale December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 3,567 $ (31 ) $ — $ — $ 3,567 $ (31 ) Municipal securities 25,176 (184 ) — — 25,176 (184 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 182,970 (1,475 ) — — 182,970 (1,475 ) Corporate obligations 2,119 (24 ) — — 2,119 (24 ) Total $ 213,832 $ (1,714 ) $ — $ — $ 213,832 $ (1,714 ) Held to maturity investment securities with unrecognized losses as of September 30, 2015 and December 31, 2014 were as follows: Securities Held to Maturity September 30, 2015 Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses (In thousands) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies $ — $ — $ 2,028 $ (51 ) $ 2,028 $ (51 ) Total $ — $ — $ 2,028 $ (51 ) $ 2,028 $ (51 ) Securities Held to Maturity December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses (In thousands) Municipal securities $ 2,196 $ (11 ) $ — $ — $ 2,196 $ (11 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 2,553 (74 ) — — 2,553 (74 ) Private residential collateralized mortgage obligations 558 (104 ) — — 558 (104 ) Total $ 5,307 $ (189 ) $ — $ — $ 5,307 $ (189 ) The Company has evaluated these securities and has determined that the decline in their value is temporary. The unrealized losses are primarily due to increases in market interest rates and larger spreads in the market for mortgage-related products. The fair value of these securities is expected to recover as the securities approach their maturity date and/or as the pricing spreads narrow on mortgage-related securities. The Company has the ability and intent to hold the investments until recovery of the market value which may be the maturity date of the securities. During the nine months ended September 30, 2015, the Company sold its entire portfolio of private residential collateralized mortgage obligations with a carrying value of $829,000 , all of which were classified as held-to-maturity. Since acquisition, these securities had been downgraded below the Company's acceptable investment grades. As a result of these downgrades and the effects on the risk-weighting of sub-investment grade securities based on the final rule effective in July 2013 of the Federal banking regulators' capital adequacy standards of the Basel Committee on Banking Supervision, commonly called "Basel III", the Company's intent to hold these securities changed and management elected to divest of its interest in the downgraded securities. The Company recorded a realized loss of $125,000 on this sale during the nine months ended September 30, 2015. The Company's intent and ability to hold the remaining held-to-maturity securities was not impacted by this sale. Prior to the above mentioned sale of the private residential collateralized mortgage obligations, to analyze the unrealized losses, the Company estimated expected future cash flows of these investments by estimating the expected future cash flows of the underlying collateral and applying those collateral cash flows, together with any credit enhancements such as subordinated interests owned by third parties, to the security. The expected future cash flows of the underlying collateral were determined using the remaining contractual cash flows adjusted for future expected credit losses (which considers current delinquencies and nonperforming assets, future expected default rates and collateral value by vintage and geographic region) and prepayments. The expected cash flows of the security were then discounted at the interest rate used to recognize interest income on the security to arrive at a present value amount. The average prepayment rate and average discount rate used in the valuation of the present value as of September 30, 2014 were 6.0% and 9.4% , respectively. For the nine months ended September 30, 2015 , there were no investment securities determined to be other-than-temporarily impaired and the Company recorded no unrealized losses for the nine months ended September 30, 2015 in earnings or other comprehensive income. In comparison, for the nine months ended September 30, 2014 , there were four private residential collateralized mortgage obligations determined to be other-than-temporarily impaired. All unrealized losses for the three and nine months ended September 30, 2014 were deemed to be credit related, and the Company recorded the impairment in earnings. The following table summarizes activity for the nine months ended September 30, 2014 related to the amount of impairments on held to maturity securities. There were no initial or subsequent impairments recorded during the nine months ended September 30, 2015. Life-to-Date Gross Other-Than-Temporary Impairments (1) Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings (In thousands) December 31, 2013 $ 2,603 $ 1,152 $ 1,451 Subsequent impairments 45 — 45 September 30, 2014 $ 2,648 $ 1,152 $ 1,496 (1) Life-to-date gross other-than-temporary impairments disclosed in this table are not reflective of subsequent recoveries, if any. As of September 30, 2015, the Company had no securities with other-than-temporary impairments because all such securities were sold as of September 30, 2015. (c) Pledged Securities The following table summarizes the amortized cost and fair value of available for sale and held to maturity securities that are pledged as collateral for the following obligations at September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Washington and Oregon state to secure public deposits $ 218,478 $ 222,564 $ 150,507 $ 153,785 Federal Reserve Bank of San Francisco and Federal Home Loan Bank to secure borrowing arrangements 509 510 4,430 4,460 Repurchase agreements 29,712 30,111 43,676 44,457 Other securities pledged 2,136 2,173 14,828 14,922 Total $ 250,835 $ 255,358 $ 213,441 $ 217,624 At September 30, 2015 and December 31, 2014 , the total carrying value of pledged securities was $254.2 million and $216.7 million , respectively. |
Loans Receivable
Loans Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable | Loans Receivable The Company originates loans in the ordinary course of business and has also acquired loans through FDIC-assisted and open bank transactions. Loans acquired in a business combination may be further classified as “purchased” loans. Loans purchased with evidence of credit deterioration since origination for which it is probable that not all contractually required payments will be collected are accounted for under FASB Accounting Standards Codification ("ASC") 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . These loans are identified as “purchased credit impaired” ("PCI") loans. Loans purchased that are not accounted for under FASB ASC 310-30 are accounted for under FASB ASC 310-20, Receivables—Nonrefundable Fees and Other Costs and are referred to as "non-PCI" loans. On August 4, 2015, the Company signed an agreement with the FDIC to terminate the shared-loss agreements. As a result, the Company eliminated the designation of "covered" and "noncovered" loans from current and all prior periods. All loans, including purchased loans, are included in the "loans receivable" classification. For additional information on the termination agreement with the FDIC, see Note (5) FDIC Indemnification Asset. (a) Loan Origination/Risk Management The Company categorizes loans in one of the four segments of the total loan portfolio: commercial business, one-to-four family residential, real estate construction and land development and consumer. Within these segments are classes of loans to which management monitors and assesses credit risk in the loan portfolios. The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies, and nonperforming and potential problem loans. The Company also conducts internal loan reviews and validates the credit risk assessment on a periodic basis and presents the results of these reviews to management. The loan review process complements and reinforces the risk identification and assessment decisions made by loan officers and credit personnel, as well as the Company’s policies and procedures. A discussion of the risk characteristics of each loan portfolio segment is as follows: Commercial Business : There are three significant classes of loans in the commercial portfolio segment: commercial and industrial loans, owner-occupied commercial real estate and non-owner occupied commercial real estate. The owner and non-owner occupied commercial real estate are both considered commercial real estate loans. As the commercial and industrial loans carry different risk characteristics than the commercial real estate loans, they are discussed separately below. Commercial and industrial. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may include a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate. The Company originates commercial real estate loans within its primary market areas. These loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate involves more risk than other classes of loans in that the lending typically involves higher loan principal amounts, and payments on loans secured by real estate properties are dependent on successful operation and management of the properties. Repayment of these loans may be more adversely affected by conditions in the real estate market or the economy. Owner-occupied commercial real estate loans are generally of lower credit risk than non-owner occupied commercial real estate loans as the borrowers' businesses are likely dependent on the properties. One-to-Four Family Residential : The majority of the Company’s one-to-four family residential loans are secured by single-family residences located in its primary market areas. The Company’s underwriting standards require that single-family portfolio loans generally are owner-occupied and do not exceed 80% of the lower of appraised value at origination or cost of the underlying collateral. Terms of maturity typically range from 15 to 30 years. Historically, the Company sold most single-family loans in the secondary market and retained a smaller portion in its loan portfolio. From the second quarter of 2013 until May 1, 2014, the Company only originated single-family loans for its loan portfolio. As a result of the Washington Banking Merger, since May 1, 2014 the Company is originating and selling a majority of its single-family mortgages. Real Estate Construction and Land Development : The Company originates construction loans for one-to-four family residential and for five or more family residential and commercial properties. The one-to-four family residential construction loans generally include construction of custom homes whereby the home buyer is the borrower. The Company also provides financing to builders for the construction of pre-sold homes and, in selected cases, to builders for the construction of speculative residential property. Substantially all construction loans are short-term in nature and priced with variable rates of interest. Construction lending can involve a higher level of risk than other types of lending because funds are advanced partially based upon the value of the project, which is uncertain prior to the project’s completion. Because of the uncertainties inherent in estimating construction costs as well as the market value of a completed project and the effects of governmental regulation of real property, the Company’s estimates with regard to the total funds required to complete a project and the related loan-to-value ratio may vary from actual results. As a result, construction loans often involve the disbursement of substantial funds with repayment dependent, in part, on the success of the ultimate project and the ability of the borrower to sell or lease the property or refinance the indebtedness. If the Company’s estimate of the value of a project at completion proves to be overstated, it may have inadequate security for repayment of the loan and may incur a loss if the borrower does not repay the loan. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being dependent upon successful completion of the construction project, interest rate changes, government regulation of real property, general economic conditions and the availability of long-term financing. Consumer : The Company originates consumer loans and lines of credit that are both secured and unsecured. The underwriting process for these loans ensures a qualifying primary and secondary source of repayment. Underwriting standards for home equity loans are significantly influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80% , collection remedies, the number of such loans a borrower can have at one time and documentation requirements. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed. The majority of consumer loans are for relatively small amounts disbursed among many individual borrowers which reduces the credit risk for this type of loan. To further reduce the risk, trend reports are reviewed by management on a regular basis. As a result of the Washington Banking Merger, the Company began originating indirect consumer loans. These loans are for new and used automobile and recreational vehicles that are originated indirectly by selected dealers located in the Company's market areas. The Company has limited its purchase of indirect loans primarily to dealerships that are established and well known in their market areas and to applicants that are not classified as sub-prime. Loans receivable at September 30, 2015 and December 31, 2014 consisted of the following portfolio segments and classes: September 30, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 618,390 $ 570,453 Owner-occupied commercial real estate 603,372 594,986 Non-owner occupied commercial real estate 703,771 643,636 Total commercial business 1,925,533 1,809,075 One-to-four family residential 70,577 69,530 Real estate construction and land development: One-to-four family residential 49,745 49,195 Five or more family residential and commercial properties 73,328 64,920 Total real estate construction and land development 123,073 114,115 Consumer 284,541 259,294 Gross loans receivable 2,403,724 2,252,014 Net deferred loan costs (fees) 320 (937 ) Loans receivable, net 2,404,044 2,251,077 Allowance for loan losses (29,004 ) (27,729 ) Total loans receivable, net $ 2,375,040 $ 2,223,348 (b) Concentrations of Credit Most of the Company’s lending activity occurs within Washington State, and to a lesser extent Oregon. The Company’s primary market areas are concentrated along the I-5 corridor from Whatcom County to Clark County in Washington State and Multnomah County in Oregon, as well as other contiguous markets. The Washington Banking Merger allowed the expansion of the Company's market area north of Seattle, Washington to the Canadian border. The majority of the Company’s loan portfolio consists of (in order of balances at September 30, 2015 ) non-owner occupied commercial real estate, commercial and industrial and owner-occupied commercial real estate. As of September 30, 2015 and December 31, 2014 , there were no concentrations of loans related to any single industry in excess of 10% of the Company’s total loans. (c) Credit Quality Indicators As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grade of the loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans, and (v) the general economic conditions of the United States of America, and specifically the states of Washington and Oregon. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 0 to 10. A description of the general characteristics of the risk grades is as follows: • Grades 0 to 5: These grades are considered “pass grade” and include loans with negligible to above average but acceptable risk. These borrowers generally have strong to acceptable capital levels and consistent earnings and debt service capacity. Loans with the higher grades within the “pass” category may include borrowers who are experiencing unusual operating difficulties, but have acceptable payment performance to date. Increased monitoring of financials and/or collateral may be appropriate. Loans with this grade show no immediate loss exposure. • Grade 6: This grade includes "Watch" loans and is considered a “pass grade”. The grade is intended to be utilized on a temporary basis for pass grade borrowers where a potentially significant risk-modifying action is anticipated in the near term. • Grade 7: This grade includes “Other Assets Especially Mentioned” (“OAEM”) loans in accordance with regulatory guidelines, and is intended to highlight loans with elevated risks. Loans with this grade show signs of deteriorating profits and capital, and the borrower might not be strong enough to sustain a major setback. The borrower is typically higher than normally leveraged, and outside support might be modest and likely illiquid. The loan is at risk of further decline unless active measures are taken to correct the situation. • Grade 8: This grade includes “Substandard” loans in accordance with regulatory guidelines, which the Company has determined have a high credit risk. These loans also have well-defined weaknesses which make payment default or principal exposure likely, but not yet certain. The borrower may have shown serious negative trends in financial ratios and performance. Such loans may be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. Loans with this grade can be placed on accrual or nonaccrual status based on the Company’s accrual policy. • Grade 9: This grade includes “Doubtful” loans in accordance with regulatory guidelines, and the Company has determined these loans to have excessive credit risk. Such loans are placed on nonaccrual status and may be dependent upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty. Additionally, these loans generally have a specific valuation allowance or have been partially charged-off for the amount considered uncollectible. • Grade 10: This grade includes “Loss” loans in accordance with regulatory guidelines, and the Company has determined these loans have the highest risk of loss. Such loans are charged-off or charged-down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. “Loss” is not intended to imply that the loan or some portion of it will never be paid, nor does it in any way imply that there has been a forgiveness of debt. Numerical loan grades for all commercial business loans and real estate construction and land development loans are established at the origination of the loan. Prior to November 2014, one-to-four family residential loans and consumer loans (“non-commercial loans”) were not numerically graded at origination date as these loans were determined to be “pass graded” loans. A numeric grade was assigned to these non-commercial loans if subsequent to origination, the credit department evaluated the credit and determined it necessary to classify the loan. Subsequent to November 2014, non-commercial loans were designated a loan grade “4” at origination date to reflect a "pass grade". The Bank follows the FDIC’s Uniform Retail Credit Classification and Account Management Policy for subsequent classification in the event of payment delinquencies or default. Loan grades are reviewed on a quarterly basis, or more frequently if necessary, by the credit department. Typically, an individual loan grade will not be changed from the prior period unless there is a specific indication of credit deterioration or improvement. Credit deterioration is evidenced by delinquency, direct communications with the borrower, or other borrower information that becomes known to management. Credit improvements are evidenced by known facts regarding the borrower or the collateral property. The loan grades relate to the likelihood of losses in that the higher the grade, the greater the loss potential. Loans with a pass grade may have some estimated inherent losses, but to a lesser extent than the other loan grades. The OAEM loan grade is transitory in that the Company is waiting on additional information to determine the likelihood and extent of the potential loss. The likelihood of loss for OAEM graded loans, however, is greater than Watch graded loans because there has been measurable credit deterioration. Loans with a Substandard grade are generally loans for which the Company has individually analyzed for potential impairment. For Doubtful and Loss graded loans, the Company is almost certain of the losses, and the unpaid principal balances are generally charged-off to the realizable value. The following tables present the balance of the loans receivable by credit quality indicator as of September 30, 2015 and December 31, 2014 . September 30, 2015 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 584,337 $ 9,906 $ 23,839 $ 308 $ 618,390 Owner-occupied commercial real estate 571,283 11,955 19,878 256 603,372 Non-owner occupied commercial real estate 654,621 17,695 30,310 1,145 703,771 Total commercial business 1,810,241 39,556 74,027 1,709 1,925,533 One-to-four family residential 68,441 — 2,136 — 70,577 Real estate construction and land development: One-to-four family residential 40,356 1,361 8,028 — 49,745 Five or more family residential and commercial properties 68,633 — 4,695 — 73,328 Total real estate construction and land development 108,989 1,361 12,723 — 123,073 Consumer 276,929 4 7,608 — 284,541 Gross loans receivable $ 2,264,600 $ 40,921 $ 96,494 $ 1,709 $ 2,403,724 December 31, 2014 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 520,780 $ 14,618 $ 32,491 $ 2,564 $ 570,453 Owner-occupied commercial real estate 536,591 27,903 30,145 347 594,986 Non-owner occupied commercial real estate 593,918 17,683 32,035 — 643,636 Total commercial business 1,651,289 60,204 94,671 2,911 1,809,075 One-to-four family residential 66,599 740 2,191 — 69,530 Real estate construction and land development: One-to-four family residential 36,534 3,977 8,684 — 49,195 Five or more family residential and commercial properties 58,783 — 6,137 — 64,920 Total real estate construction and land development 95,317 3,977 14,821 — 114,115 Consumer 249,866 — 9,428 — 259,294 Gross loans receivable $ 2,063,071 $ 64,921 $ 121,111 $ 2,911 $ 2,252,014 Potential problem loans are loans classified as OAEM, Substandard, Doubtful and Loss that are currently accruing interest and are not considered impaired, but which management is monitoring because the financial information of the borrower causes concern as to their ability to meet their loan repayment terms. Potential problem loans also include PCI loans as these loans continue to accrete loan discounts established at acquisition based on the guidance of ASC 310-30. Potential problem loans as of September 30, 2015 and December 31, 2014 were $113.3 million and $162.9 million , respectively. The balance of potential problem loans guaranteed by a governmental agency, which guarantee reduces the Company's credit exposure, was $920,000 and $2.0 million as of September 30, 2015 and December 31, 2014 , respectively. (d) Nonaccrual Loans Nonaccrual loans, segregated by segments and classes of loans, were as follows as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 4,387 $ 5,784 Owner-occupied commercial real estate 2,806 2,295 Non-owner occupied commercial real estate — 517 Total commercial business 7,193 8,596 One-to-four family residential 40 — Real estate construction and land development: One-to-four family residential 2,612 2,831 Total real estate construction and land development 2,612 2,831 Consumer 62 145 Gross nonaccrual loans $ 9,907 $ 11,572 The Company had $1.4 million and $1.6 million of nonaccrual loans guaranteed by governmental agencies at September 30, 2015 and December 31, 2014 , respectively. PCI loans are not included in the nonaccrual loan table above because these loans are accounted for under ASC 310-30, which provides that accretable yield is calculated based on a loan's expected cash flow even if the loan is not performing under its conventional terms. (e) Past due loans The Company performs an aging analysis of past due loans using the categories of 30-89 days past due and 90 or more days past due. This policy is consistent with regulatory reporting requirements. The balances of past due loans, segregated by segments and classes of loans, as of September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 30-89 Days 90 Days or Greater Total Past Due Current Total 90 Days or More and Still Accruing (1) (In thousands) Commercial business: Commercial and industrial $ 1,789 $ 1,789 $ 3,578 $ 614,812 $ 618,390 $ — Owner-occupied commercial real estate 1,806 2,244 4,050 599,322 603,372 — Non-owner occupied commercial real estate 1,664 183 1,847 701,924 703,771 — Total commercial business 5,259 4,216 9,475 1,916,058 1,925,533 — One-to-four family residential — — — 70,577 70,577 — Real estate construction and land development: One-to-four family residential 636 2,350 2,986 46,759 49,745 — Five or more family residential and commercial properties 415 42 457 72,871 73,328 — Total real estate construction and land development 1,051 2,392 3,443 119,630 123,073 — Consumer 1,966 159 2,125 282,416 284,541 — Gross loans receivable $ 8,276 $ 6,767 $ 15,043 $ 2,388,681 $ 2,403,724 $ — (1) Excludes PCI loans. December 31, 2014 30-89 Days 90 Days or Greater Total Past Due Current Total 90 Days or More (In thousands) Commercial business: Commercial and industrial $ 4,765 $ 3,125 $ 7,890 $ 562,563 $ 570,453 $ — Owner-occupied commercial real estate 1,683 2,780 4,463 590,523 594,986 — Non-owner occupied commercial real estate 1,826 531 2,357 641,279 643,636 — Total commercial business 8,274 6,436 14,710 1,794,365 1,809,075 — One-to-four family residential 312 — 312 69,218 69,530 — Real estate construction and land development: One-to-four family residential 240 2,225 2,465 46,730 49,195 — Five or more family residential and commercial properties — 596 596 64,324 64,920 — Total real estate construction and land development 240 2,821 3,061 111,054 114,115 — Consumer 2,676 852 3,528 255,766 259,294 — Gross loans receivable $ 11,502 $ 10,109 $ 21,611 $ 2,230,403 $ 2,252,014 $ — (1) Excludes PCI loans. (f) Impaired loans Impaired loans include nonaccrual loans and performing troubled debt restructured loans ("TDRs"). The table below excludes $11.7 million and $10.4 million , respectively, as of September 30, 2015 and December 31, 2014 , of certain performing TDR loans classified as PCI loans. The majority of these loans have remaining fair value discounts compared to outstanding principal balances and may not have further impairment. The balance of impaired loans as of September 30, 2015 and December 31, 2014 are set forth in the following tables. September 30, 2015 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 1,168 $ 7,675 $ 8,843 $ 10,953 $ 943 Owner-occupied commercial real estate — 5,150 5,150 5,233 1,016 Non-owner occupied commercial real estate 3,720 6,854 10,574 10,581 968 Total commercial business 4,888 19,679 24,567 26,767 2,927 One-to-four family residential — 277 277 278 86 Real estate construction and land development: One-to-four family residential 2,549 1,150 3,699 4,327 39 Five or more family residential and commercial properties — 1,984 1,984 1,984 196 Total real estate construction and land development 2,549 3,134 5,683 6,311 235 Consumer — 164 164 168 32 Total $ 7,437 $ 23,254 $ 30,691 $ 33,524 $ 3,280 December 31, 2014 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 3,374 $ 8,000 $ 11,374 $ 13,045 $ 1,334 Owner-occupied commercial real estate 360 3,553 3,913 3,937 979 Non-owner occupied commercial real estate 2,459 5,270 7,729 7,719 531 Total commercial business 6,193 16,823 23,016 24,701 2,844 One-to-four family residential — 245 245 245 75 Real estate construction and land development: One-to-four family residential 2,307 2,396 4,703 5,146 447 Five or more family residential and commercial properties — 2,056 2,056 2,056 234 Total real estate construction and land development 2,307 4,452 6,759 7,202 681 Consumer 33 178 211 216 58 Total $ 8,533 $ 21,698 $ 30,231 $ 32,364 $ 3,658 The Company had governmental guarantees of $1.8 million and $2.4 million related to the impaired loan balances at September 30, 2015 and December 31, 2014 , respectively. The average recorded investment of impaired loans for the three and nine months ended September 30, 2015 and 2014 are set forth in the following table. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Commercial business: Commercial and industrial $ 8,692 $ 15,296 $ 10,776 $ 15,115 Owner-occupied commercial real estate 4,882 3,811 4,151 3,500 Non-owner occupied commercial real estate 10,256 8,525 8,893 7,960 Total commercial business 23,830 27,632 23,820 26,575 One-to-four family residential 259 573 315 692 Real estate construction and land development: One-to-four family residential 3,639 5,689 4,312 5,640 Five or more family residential and commercial properties 1,997 2,091 2,032 2,178 Total real estate construction and land development 5,636 7,780 6,344 7,818 Consumer 159 970 329 930 Total $ 29,884 $ 36,955 $ 30,808 $ 36,015 For the three and nine months ended September 30, 2015 and 2014 , no interest income was recognized subsequent to a loan’s classification as nonaccrual. For the three months ended September 30, 2015 and 2014 , the Bank recorded $278,000 and $188,000 , respectively, of interest income related to performing TDR loans. For the nine months ended September 30, 2015 and 2014 , the Bank recorded $905,000 and $721,000 , respectively, of interest income related to performing TDR loans. (g) Troubled Debt Restructured Loans A troubled debt restructured loan is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDRs are considered impaired and are separately measured for impairment under FASB ASC 310-10-35, "Receivables - Overall - Subsequent Measurement," whether on accrual ("performing") or nonaccrual ("nonperforming") status. The majority of the Bank’s TDR loans are a result of granting extensions of maturity on troubled credits which have already been adversely classified. The Bank grants such extensions to reassess the borrower’s financial status and to develop a plan for repayment. Certain modifications with extensions also include interest rate reductions, which is the second most prevalent concession. Certain TDRs were additionally re-amortized over a longer period of time. The Bank also advanced funds to a troubled speculative home builder to complete established projects. These modifications would all be considered a concession for a borrower that could not obtain similar financing terms from another source other than from the Bank. The financial effects of each modification will vary based on the specific restructure. For the majority of the Bank’s TDRs, the loans were interest-only with a balloon payment at maturity. If the interest rate is not adjusted and the modified terms are consistent with other similar credits being offered, the Bank may not experience any loss associated with the restructure. If, however, the restructure involves forbearance agreements or interest rate modifications, the Bank may not collect all the principal and interest based on the original contractual terms. The Bank estimates the necessary allowance for loan losses on TDRs using the same guidance as used for other impaired loans. The recorded investment balance and related allowance for loan losses of performing and nonaccrual TDR loans as of September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Performing TDRs Nonaccrual TDRs Performing TDRs Nonaccrual (In thousands) TDR loans $ 32,460 $ 6,639 $ 29,053 $ 7,256 Allowance for loan losses on TDR loans 2,033 655 1,908 1,035 The unfunded commitment to borrowers related to TDRs was $585,000 and $1.8 million at September 30, 2015 and December 31, 2014 , respectively. Loans that were modified as TDRs during the three and nine months ended September 30, 2015 and 2014 are set forth in the following tables: Three Months Ended September 30, 2015 2014 Number of Contracts (1) Outstanding Number of Contracts (1) Outstanding Principal Balance (1)(2) (Dollars in thousands) Commercial business: Commercial and industrial 10 $ 3,598 16 $ 3,108 Owner-occupied commercial real estate 2 1,102 1 180 Non-owner occupied commercial real estate 1 1,082 — — Total commercial business 13 5,782 17 3,288 One-to-four family residential 0 — — — Real estate construction and land development: One-to-four family residential 2 1,087 4 1,223 Total real estate construction and land development 2 1,087 4 1,223 Consumer — — 1 68 Total TDR loans 15 $ 6,869 22 $ 4,579 Nine Months Ended September 30, 2015 2014 Number of Contracts (1) Outstanding Number of Contracts (1) Outstanding Principal Balance (1)(2) (Dollars in thousands) Commercial business: Commercial and industrial 29 $ 6,443 20 $ 7,730 Owner-occupied commercial real estate 7 2,201 2 523 Non-owner occupied commercial real estate 6 15,634 2 1,020 Total commercial business 42 24,278 24 9,273 Real estate construction and land development: One-to-four family residential 6 2,681 5 1,406 Five or more family residential and commercial properties 1 415 — — Total real estate construction and land development 7 3,096 5 1,406 Consumer 2 144 4 284 Total TDR loans 51 $ 27,518 33 $ 10,963 (1) Number of contracts and outstanding principal balance represent loans which have balances as of period end as certain loans may have been paid-down or charged-off during the three and nine months ended September 30, 2015 and 2014 . (2) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modification, the Bank’s recorded investment in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification), except when the modification was the initial advance on a one-to-four family residential real estate construction and land development loan under a master guidance line. There were no advances on these types of loans during the three and nine months ended September 30, 2015 and the three months ended September 30, 2014 . During the nine months ended September 30, 2014 , the Company's initial advance at the time of modification on these construction loans totaled $45,000 and the total commitment amount was $190,000 . Of the 15 loans modified during the three months ended September 30, 2015 , and the 51 loans modified during the nine months ended September 30, 2015 , six loans with a total outstanding principal balance of $2.3 million had no prior modifications. The remaining loans included in the tables above for the three and nine months ended September 30, 2015 were previously reported as TDRs. The Bank typically grants shorter extension periods to continually monitor the troubled credits despite the fact that the extended date might not be the date the Bank expects the cash flow. The Company does not consider these modifications a subsequent default of a TDR as new loan terms, specifically maturity dates, were granted. The potential losses related to these loans would have been considered in the period the loan was first reported as a TDR and adjusted, as necessary, in the current periods based on more recent information. The related specific valuation allowance at September 30, 2015 for loans that were modified as TDRs during the three and nine months ended September 30, 2015 was $416,000 and $1.6 million , respectively. The loans modified during the previous twelve months ended September 30, 2015 and 2014 that subsequently defaulted during the three and nine months ended September 30, 2015 and 2014 are included in the foll |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at a level deemed appropriate by management to provide for probable incurred credit losses in the loan portfolio. The allowance has three components, including a specific valuation allowance for impaired loans, a general allowance for non-impaired loans, and an allowance for PCI loans. Prior to the termination of the FDIC shared-loss agreements on August 4, 2015 and when credit deterioration occurred subsequent to the acquisition dates, a provision for loan losses was charged to earnings for the full amount of the impairment without regard to the coverage of the FDIC shared-loss agreements for the once covered loans acquired in the Cowlitz acquisition and Washington Banking Merger (including Washington Banking's prior acquisitions of City Bank and North County Bank). The following tables detail activity in the allowance for loan losses disaggregated by segment and class for the three and nine months ended September 30, 2015 : Balance at Beginning of Period Charge-offs Recoveries Provision for Loan Losses Balance at End of Period (In thousands) Three Months Ended September 30, 2015 Commercial business: Commercial and industrial $ 9,891 $ (70 ) $ 59 $ 494 $ 10,374 Owner-occupied commercial real estate 4,587 — — (296 ) 4,291 Non-owner occupied commercial real estate 6,146 — — 592 6,738 Total commercial business 20,624 (70 ) 59 790 21,403 One-to-four family residential 1,271 — 12 (88 ) 1,195 Real estate construction and land development: One-to-four family residential 1,462 — — 79 1,541 Five or more family residential and commercial properties 1,062 — — (20 ) 1,042 Total real estate construction and land development 2,524 — — 59 2,583 Consumer 3,167 (278 ) 152 174 3,215 Unallocated 692 — — (84 ) 608 Total $ 28,278 $ (348 ) $ 223 $ 851 $ 29,004 Nine Months Ended September 30, 2015 Commercial business: Commercial and industrial $ 10,553 $ (1,392 ) $ 447 $ 766 $ 10,374 Owner-occupied commercial real estate 4,095 — — 196 4,291 Non-owner occupied commercial real estate 5,538 (188 ) — 1,388 6,738 Total commercial business 20,186 (1,580 ) 447 2,350 21,403 One-to-four family residential 1,200 — 13 (18 ) 1,195 Real estate construction and land development: One-to-four family residential 1,786 (106 ) 100 (239 ) 1,541 Five or more family residential and commercial properties 972 — — 70 1,042 Total real estate construction and land development 2,758 (106 ) 100 (169 ) 2,583 Consumer 2,769 (1,208 ) 362 1,292 3,215 Unallocated 816 — — (208 ) 608 Total $ 27,729 $ (2,894 ) $ 922 $ 3,247 $ 29,004 The following table details the balance in the allowance for loan losses disaggregated on the basis of the Company's impairment method as of September 30, 2015 . Loans individually evaluated for impairment Loans collectively evaluated for impairment PCI loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 943 $ 6,711 $ 2,720 $ 10,374 Owner-occupied commercial real estate 1,016 1,780 1,495 4,291 Non-owner occupied commercial real estate 968 3,431 2,339 6,738 Total commercial business 2,927 11,922 6,554 21,403 One-to-four family residential 86 584 525 1,195 Real estate construction and land development: One-to-four family residential 39 492 1,010 1,541 Five or more family residential and commercial properties 196 755 91 1,042 Total real estate construction and land development 235 1,247 1,101 2,583 Consumer 32 2,293 890 3,215 Unallocated — 608 — 608 Total $ 3,280 $ 16,654 $ 9,070 $ 29,004 The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method as of September 30, 2015 : Loans individually evaluated for impairment Loans collectively evaluated for impairment PCI loans Total Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 8,843 $ 593,826 $ 15,721 $ 618,390 Owner-occupied commercial real estate 5,150 573,493 24,729 603,372 Non-owner occupied commercial real estate 10,574 662,237 30,960 703,771 Total commercial business 24,567 1,829,556 71,410 1,925,533 One-to-four family residential 277 65,151 5,149 70,577 Real estate construction and land development: One-to-four family residential 3,699 41,667 4,379 49,745 Five or more family residential and commercial properties 1,984 68,113 3,231 73,328 Total real estate construction and land development 5,683 109,780 7,610 123,073 Consumer 164 276,388 7,989 284,541 Total $ 30,691 $ 2,280,875 $ 92,158 $ 2,403,724 The following tables detail activity in the allowance for loan losses disaggregated by segment and class for the three and nine months ended September 30, 2014 . Balance at Beginning of Period Charge-offs Recoveries Provision for Loan Losses Balance at End of Period (In thousands) Three Months Ended September 30, 2014 Commercial business: Commercial and industrial $ 11,304 $ (309 ) $ 43 $ 234 $ 11,272 Owner-occupied commercial real estate 4,200 (128 ) (9 ) 4,063 Non-owner occupied commercial real estate 5,685 (72 ) — 163 5,776 Total commercial business 21,189 (509 ) 43 388 21,111 One-to-four family residential 1,155 — — 200 1,355 Real estate construction and land development: One-to-four family residential 1,533 — — 235 1,768 Five or more family residential and commercial properties 1,630 — — (926 ) 704 Total real estate construction and land development 3,163 — — (691 ) 2,472 Consumer 2,175 (315 ) 46 884 2,790 Unallocated 801 — — (187 ) 614 Total $ 28,483 $ (824 ) $ 89 $ 594 $ 28,342 Nine Months Ended September 30, 2014 Commercial business: Commercial and industrial $ 13,478 $ (1,791 ) $ 544 $ (959 ) $ 11,272 Owner-occupied commercial real estate 4,049 (128 ) 142 4,063 Non-owner occupied commercial real estate 5,326 (72 ) — 522 5,776 Total commercial business 22,853 (1,991 ) 544 (295 ) 21,111 One-to-four family residential 1,100 — — 255 1,355 Real estate construction and land development: One-to-four family residential 1,720 (345 ) 43 350 1,768 Five or more family residential and commercial properties 953 — — (249 ) 704 Total real estate construction and land development 2,673 (345 ) 43 101 2,472 Consumer 1,597 (557 ) 81 1,669 2,790 Unallocated 601 — — 13 614 Total $ 28,824 $ (2,893 ) $ 668 $ 1,743 $ 28,342 The following table details the balance in the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2014. Loans individually evaluated for impairment Loans collectively evaluated for impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,334 $ 6,557 $ 2,662 $ 10,553 Owner-occupied commercial real estate 979 1,643 1,473 4,095 Non-owner occupied commercial real estate 531 2,547 2,460 5,538 Total commercial business 2,844 10,747 6,595 20,186 One-to-four family residential 75 538 587 1,200 Real estate construction and land development: One-to-four family residential 447 322 1,017 1,786 Five or more family residential and commercial properties 234 650 88 972 Total real estate construction and land development 681 972 1,105 2,758 Consumer 58 1,943 768 2,769 Unallocated — 816 — 816 Total $ 3,658 $ 15,016 $ 9,055 $ 27,729 The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method for the year ended December 31, 2014 : Loans individually evaluated for impairment Loans collectively evaluated for impairment PCI loans Total Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 11,374 $ 533,905 $ 25,174 $ 570,453 Owner-occupied commercial real estate 3,913 554,199 36,874 594,986 Non-owner occupied commercial real estate 7,729 604,465 31,442 643,636 Total commercial business 23,016 1,692,569 93,490 1,809,075 One-to-four family residential 245 63,572 5,713 69,530 Real estate construction and land development: One-to-four family residential 4,703 38,961 5,531 49,195 Five or more family residential and commercial properties 2,056 58,099 4,765 64,920 Total real estate construction and land development 6,759 97,060 10,296 114,115 Consumer 211 249,311 9,772 259,294 Total $ 30,231 $ 2,102,512 $ 119,271 $ 2,252,014 |
FDIC Indemnification Asset
FDIC Indemnification Asset | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
FDIC Indemnification Asset | FDIC Indemnification Asset Changes in the FDIC indemnification asset during the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Balance at the beginning of the period $ 388 $ 8,887 $ 1,116 $ 4,382 Additions as a result of the Washington Banking Merger — — — 7,174 Cash payments received or receivable from the FDIC — (3,102 ) (231 ) (5,843 ) FDIC share of additional estimated (gains) losses — (249 ) (352 ) 556 Net amortization — (398 ) (145 ) (1,131 ) Change due to termination of FDIC shared-loss agreements (388 ) — (388 ) — Balance at the end of the period $ — $ 5,138 $ — $ 5,138 On August 4, 2015, the Bank and the FDIC entered into an agreement terminating the FDIC shared-loss agreements for all three of the FDIC-assisted acquisitions (Cowlitz Bank, and Washington Banking's acquisitions of City Bank and North County Bank). The Bank paid consideration of $7.1 million to the FDIC for the termination of the shared-loss agreements related to these acquisitions. The termination of the shared-loss agreements resulted in a pre-tax gain of $1.7 million (included in "other income" in the Condensed Consolidated Statements of Income) and the elimination of the FDIC indemnification asset and the FDIC clawback liability (included in “accrued expenses and other liabilities” in the Condensed Consolidated Statements of Financial Condition) which was recorded as of the termination date. The FDIC indemnification asset and FDIC clawback liability amounts were $388,000 and $9.3 million , respectively, as of June 30, 2015. All rights and obligations of the parties under the FDIC shared-loss agreements, including the clawback provisions, were eliminated under the termination agreement. It is not anticipated that the termination of the FDIC shared-loss agreements will have any impact on the yields for the loans that were previously covered under these agreements. All future charge-offs, recoveries, gains, losses and expenses related to covered assets will now be recognized entirely by the Bank since the FDIC will no longer be sharing in such charge-offs, recoveries, gains, losses and expenses. |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Other Real Estate Owned | Other Real Estate Owned Changes in other real estate owned during the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Balance at the beginning of the period $ 3,017 $ 8,106 $ 3,355 $ 4,559 Additions 611 459 2,424 677 Additions from acquisitions — — — 7,121 Proceeds from dispositions (1,560 ) (1,315 ) (3,199 ) (5,173 ) Gain (loss) on sales, net 3 (378 ) (94 ) (312 ) Valuation adjustment — — (415 ) — Balance at the end of the period $ 2,071 $ 6,872 $ 2,071 $ 6,872 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets (a) Goodwill The Company’s goodwill represents the excess of the purchase price over the fair value of net assets acquired in the Washington Banking Merger on May 1, 2014, and the acquisitions of Valley on July 15, 2013, Western Washington Bancorp in 2006 and North Pacific Bank in 1998. The Company’s goodwill is assigned to the Bank and is evaluated for impairment at the Bank level (reporting unit). There were no additions to goodwill during the three and nine months ended September 30, 2015 and the three months ended September 30, 2014. The Company recorded $89.7 million in goodwill during the nine months ended September 30, 2014 as a result of the Washington Banking Merger. For additional information on the Washigton Banking Merger, see Note (14) Business Combination. At September 30, 2015 , the Company’s step-one analysis concluded that the reporting unit’s fair value was greater than its carrying value and therefore no goodwill impairment charges were required for the three and nine months ended September 30, 2015 . The Company did no t record any goodwill impairment charges for the three and nine months ended September 30, 2015 or for the three and nine months ended September 30, 2014 . Even though there was no goodwill impairment at September 30, 2015 , adverse events may impact the recoverability of goodwill and could result in a future impairment charge which could have a material impact on the Company’s operating results. b) Other Intangible Assets The other intangible assets represent the core deposit intangible ("CDI") acquired in business combinations. The useful life of the CDI related to the Washington Banking Merger, the acquisitions of Valley, NCB, Pierce, Cowlitz, and Western Washington Bancorp were estimated to be ten , ten , five , four , nine and eight years , respectively. The following table presents the change in the other intangible assets for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Balance at the beginning of the period $ 9,835 $ 12,164 $ 10,889 $ 1,615 Additions as a result of acquisitions — — — 11,194 Less: Amortization 523 603 1,577 1,248 Balance at the end of the period $ 9,312 $ 11,561 $ 9,312 $ 11,561 |
Junior Subordinated Debentures
Junior Subordinated Debentures | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debentures | Junior Subordinated Debentures As part of the Washington Banking Merger, the Company assumed trust preferred securities and junior subordinated debentures with a total fair value of $18.9 million at May 1, 2014. Washington Banking Master Trust ("Trust"), a Delaware statutory business trust, was a wholly-owned subsidiary of Washington Banking created for the exclusive purposes of issuing and selling capital securities and utilizing sale proceeds to acquire junior subordinated debt issued by Washington Banking. During 2007, the Trust issued $25.0 million of trust preferred securities with a 30 -year maturity, callable after the fifth year by Washington Banking. The trust preferred securities have a quarterly adjustable rate based upon the three-month London Interbank Offered Rate (“LIBOR”) plus 1.56% . On the Washington Banking Merger date of May 1, 2014, the Company acquired the Trust, which retained the Washington Banking Master Trust name, and assumed the performance and observance of the covenants under the indenture related to the trust preferred securities. The adjustable rate of the trust preferred securities at September 30, 2015 was 1.89% . The weighted average rate of the junior subordinated debentures was 4.01% and 3.57% for the three months ended September 30, 2015 and 2014 , respectively, and 4.36% and 3.58% for the nine months ended September 30, 2015 and 2014 , respectively. The weighted average rate includes the accretion of the discount established at the merger date which is amortized over the life of the trust preferred securities. The junior subordinated debentures are the sole assets of the Trust, and payments under the junior subordinated debentures are the sole revenues of the Trust. At September 30, 2015 , the balance of the junior subordinated debentures was $19.4 million . All of the common securities of the Trust are owned by the Company. Heritage has fully and unconditionally guaranteed the capital securities along with all obligations of the Trust under the trust agreements. |
Repurchase Agreements
Repurchase Agreements | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Repurchase Agreements [Abstract] | |
Repurchase Agreements | Repurchase Agreements The Company utilizes repurchase agreements with one -day maturities as a supplement to funding sources. Repurchase agreements are secured by pledged investment securities available for sale. Under the repurchase agreements, the Company is required to maintain an aggregate market value of securities pledged greater than the stated margin balance. The Company is required to pledge additional securities to cover any declines below the stated margin balance. The class of collateral pledged for the Company's repurchase agreement obligations as of September 30, 2015 and December 31, 2014 , totaling $22.8 million and $32.2 million , respectively, were mortgage backed securities and collateralized mortgage obligation - residential: U.S. Government-sponsored agencies. Additional information on the total value of securities pledged for repurchase agreements is found in Note (2) Investment Securities. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity (a) Earnings Per Common Share The following table illustrates the reconciliation of weighted average shares used for earnings per common share computations for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in thousands) Net income: Net income $ 9,492 $ 7,068 $ 27,996 $ 13,759 Less: Dividends and undistributed earnings allocated to participating securities (84 ) (59 ) (247 ) (114 ) Net income allocated to common shareholders $ 9,408 $ 7,009 $ 27,749 $ 13,645 Basic: Weighted average common shares outstanding 29,960,133 30,293,559 30,086,057 24,085,132 Less: Restricted stock awards (263,404 ) (230,134 ) (268,999 ) (198,255 ) Total basic weighted average common shares outstanding 29,696,729 30,063,425 29,817,058 23,886,877 Diluted: Basic weighted average common shares outstanding 29,696,729 30,063,425 29,817,058 23,886,877 Incremental shares from stock options 22,395 36,671 22,718 50,539 Total diluted weighted average common shares outstanding 29,719,124 30,100,096 29,839,776 23,937,416 Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For the three months ended September 30, 2015 and 2014 , potential anti-dilutive shares outstanding related to options to acquire common stock totaled 2,650 and 9,640 , respectively, as the assumed proceeds from exercise price, tax benefits and future compensation was in excess of the market value. For the nine months ended September 30, 2015 and 2014 , potential anti-dilutive shares outstanding related to options to acquire common stock totaled 4,883 and 25,088 , respectively, for the same reasons indicated for the three-month periods. (b) Dividends The timing and amount of cash dividends paid on the Company's common stock depends on the Company’s earnings, capital requirements, financial condition and other relevant factors. Dividends on common stock from the Company depend substantially upon receipt of dividends from the Bank, which is the Company’s predominant source of income. The following table summarizes the dividend activity for the nine months ended September 30, 2015 and calendar year 2014. Declared Cash Dividend per Share Record Date Paid Date January 29, 2014 $0.08 February 10, 2014 February 24, 2014 March 27, 2014 $0.08 April 8, 2014 April 23, 2014 July 24, 2014 $0.09 August 7, 2014 August 21, 2014 October 23, 2014 $0.09 November 6, 2014 November 20, 2014 November 11, 2014 $0.16 December 2, 2014 December 12, 2014 January 28, 2015 $0.10 February 10, 2015 February 24, 2015 April 22, 2015 $0.11 May 7, 2015 May 21, 2015 July 22, 2015 $0.11 August 6, 2015 August 20, 2015 The FDIC and the Washington State Department of Financial Institutions, Division of Banks have the authority under their supervisory powers to prohibit the payment of dividends by the Bank to the Company. Additionally, current guidance from the Board of Governors of the Federal Reserve System ("Federal Reserve Board") provides, among other things, that dividends per share on the Company’s common stock generally should not exceed earnings per share, measured over the previous four fiscal quarters. Current regulations allow the Company and the Bank to pay dividends on their common stock if the Company’s or the Bank’s regulatory capital would not be reduced below the statutory capital requirements set by the Federal Reserve Board and the FDIC. (c) Stock Repurchase Program The Company has had various stock repurchase programs since March 1999. On October 23, 2014, the Company's Board of Directors authorized the repurchase of up to 5% of the Company's outstanding common shares, or approximately 1,513,000 shares, under the eleventh stock repurchase plan. The number, timing and price of shares repurchased will depend on business and market conditions, and other factors, including opportunities to deploy the Company's capital. On August 30, 2012, the Board of Directors approved the Company’s tenth stock repurchase plan, authorizing the repurchase of up to 5% of the Company’s outstanding shares of common stock, or approximately 757,000 shares. The Company repurchased 704,975 shares under the tenth stock repurchase plan, leaving 52,025 shares unpurchased. The following table provides total repurchased shares and average share prices under the applicable plans for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Plan Total (1) Tenth Plan Repurchased shares — 108,075 — 108,075 704,975 Stock repurchase average share price $ — $ 16.88 $ — $ 16.88 $ 15.85 Eleventh Plan Repurchased shares — — 441,966 — 441,966 Stock repurchase average share price $ — $ — $ 16.64 $ — $ 16.64 (1) Represents shares repurchased and average share price paid during the duration of the repurchase plans. In addition to the stock repurchases disclosed in the table above, the Company repurchased shares to pay withholding taxes on the vesting of restricted stock. During the three months ended September 30, 2015 and 2014 , the Company repurchased 388 and 2,751 shares of common stock at an average price of $17.63 and $16.11 , respectively, to pay withholding taxes on the vesting of restricted stock that vested during the respective periods. During the nine months ended September 30, 2015 and 2014 , the Company repurchased 21,998 and 18,549 shares of common stock at an average price of $17.07 and $16.99 , respectively, to pay withholding taxes on the vesting of restricted stock that vested during the respective periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) (“AOCI”) by component, during the three and nine months ended September 30, 2015 and 2014 are as follows: Three Months Ended September 30, 2015 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of period $ 2,198 $ — $ 2,198 Other comprehensive income before reclassification 3,064 — 3,064 Amounts reclassified from AOCI for gain on sale of investment securities included in net income (255 ) — (255 ) Net current period other comprehensive income 2,809 — 2,809 Balance of AOCI at the end of period $ 5,007 $ — $ 5,007 (1) All amounts are net of tax. Nine Months Ended September 30, 2015 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of period $ 3,567 $ (189 ) $ 3,378 Other comprehensive income before reclassification 2,324 11 2,335 Amounts reclassified from AOCI for gain on sale of investment securities included in net income (884 ) 178 (706 ) Net current period other comprehensive income 1,440 189 1,629 Balance of AOCI at the end of period $ 5,007 $ — $ 5,007 (1) All amounts are net of tax. Three Months Ended September 30, 2014 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of period $ 1,518 $ (209 ) $ 1,309 Other comprehensive income before reclassification (1,384 ) 13 (1,371 ) Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income 8 — 8 Net current period other comprehensive income (1,376 ) 13 (1,363 ) Balance of AOCI at the end of period $ 142 $ (196 ) $ (54 ) (1) All amounts are net of tax. Nine Months Ended September 30, 2014 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of the period $ (923 ) $ (239 ) $ (1,162 ) Other comprehensive income before reclassification 1,231 43 1,274 Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income (166 ) — (166 ) Net current period other comprehensive income 1,065 43 1,108 Balance of AOCI at the end of the period $ 142 $ (196 ) $ (54 ) (1) All amounts are net of tax. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock options generally vest ratably over three years and expire five years after they become exercisable or vest ratably over four years and expire ten years from date of grant. Restricted stock awards issued generally have a five -year cliff vesting or four year ratable vesting schedule. The Company issues new shares of common stock to satisfy share option exercises and restricted stock awards. On July 24, 2014, the Company's shareholders approved the Heritage Financial Corporation 2014 Omnibus Equity Plan (the "Plan") that provides for the issuance of 1,500,000 shares of the Company's common stock in the form of stock options, stock appreciation rights, stock awards (which includes restricted stock units, restricted stock, performance units, performance shares or bonus shares) and cash incentive awards. As of September 30, 2015 , there remained 1,262,567 shares available for future issuances under the Company's stock-based compensation plans. (a) Stock Option Awards For the three and nine months ended September 30, 2015 and the three months ended September 30, 2014, the Company did not recognize compensation expense or a related tax benefit for the outstanding stock options as all compensation expense had been previously recognized. For the nine months ended September 30, 2014, the Company recognized compensation expense related to stock options of $20,000 with no related tax benefit. The intrinsic value and cash proceeds from options exercised during the nine months ended September 30, 2015 was $223,000 and $666,000 , respectively. The intrinsic value and cash proceeds from options exercised during the nine months ended September 30, 2014 was $385,000 and $766,000 , respectively. The following table summarizes the stock option activity for the nine months ended September 30, 2015 and 2014 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (In thousands) Outstanding at December 31, 2013 194,482 $ 15.82 Granted (1) 90,248 10.72 Exercised (70,854 ) 10.79 Forfeited or expired (43,984 ) 22.80 Outstanding at September 30, 2014 169,892 $ 13.41 3.30 $ 455 Outstanding at December 31, 2014 156,407 $ 13.59 Granted — — Exercised (53,198 ) 12.45 Forfeited or expired (12,278 ) 16.73 Outstanding at September 30, 2015 90,931 $ 13.84 3.05 $ 456 Vested and expected to vest at September 30, 2015 90,931 $ 13.84 3.05 $ 456 Exercisable at September 30, 2015 90,931 $ 13.84 3.05 $ 456 (1) Options granted during the nine months ended September 30, 2014 represent only the stock options issued in conjunction with the Washington Banking Merger. See Note (14) Business Combination for additional information. The weighted average exercise price reflects the exchange ratio applied to the original Washington Banking exercise price pursuant to the merger agreement. (b) Restricted and Unrestricted Stock Awards For the three and nine months ended September 30, 2015 , the Company recognized compensation expense related to restricted and unrestricted stock awards of $409,000 and $1,125,000 , respectively, and a related tax benefit of $144,000 and $395,000 , respectively. For the three and nine months ended September 30, 2014 , the Company recognized compensation expense related to restricted and unrestricted stock awards of $357,000 and $896,000 , respectively, and a related tax benefit of $125,000 and $315,000 , respectively. As of September 30, 2015 , the total unrecognized compensation expense related to non-vested restricted and unrestricted stock awards was $3.2 million and the related weighted average period over which it is expected to be recognized is approximately 2.5 years. The vesting date fair value of restricted stock awards that vested during the nine months ended September 30, 2015 and 2014 was $1.6 million and $1.2 million , respectively. The following tables summarize the restricted and unrestricted stock award activity for the nine months ended September 30, 2015 and 2014 : Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2013 202,939 $ 14.29 Granted 130,548 16.03 Vested (73,336 ) 14.26 Forfeited (6,806 ) 14.66 Nonvested at September 30, 2014 253,345 $ 15.19 Nonvested at December 31, 2014 238,669 $ 15.20 Granted 121,320 16.72 Vested (91,642 ) 15.12 Forfeited (2,837 ) 15.71 Nonvested at September 30, 2015 265,510 $ 15.92 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 : Valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow the Company to sell its ownership interest back to the fund at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities, or funds. Level 2 : Valuations for assets and liabilities traded in less active dealer, or broker markets, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or valuations using methodologies with observable inputs. Level 3 : Valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques using unobservable inputs, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. (a) Recurring and Nonrecurring Basis The Company used the following methods and significant assumptions to estimate fair value of certain assets on a recurring and nonrecurring basis: Investment Securities Available for Sale and Held to Maturity : The fair values of all investment securities are based upon the assumptions market participants would use in pricing the security. If available, investment securities are determined by quoted market prices which is generally the case for mutual funds and other equities (Level 1). For investment securities where quoted market prices are not available, fair values are calculated based on market prices on similar securities (Level 2). Level 2 includes U.S. Treasury, U.S. Government and agency debt securities, municipal securities, corporate securities and mortgage-backed securities and collateralized mortgage obligations-residential. For investment securities where quoted prices or market prices of similar securities are not available, fair values are calculated by using observable and unobservable inputs such as discounted cash flows or other market indicators (Level 3). Security valuations are obtained from third party pricing services for comparable assets or liabilities. Impaired Loans : At the time a loan is considered impaired, its impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, a loan’s observable market prices, or fair market value of the collateral if the loan is collateral-dependent. Impaired loans for which impairment is measured using the discounted cash flow approach are not considered to be measured at fair value because the loan’s effective interest rate is not a fair value input, and for the purposes of fair value disclosures, the fair value of these loans are measured commensurate with non-impaired loans. Generally, the Company utilizes the fair market value of the collateral, which is commonly based on recent real estate appraisals, to measure impairment. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business (Level 3). Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Other Real Estate Owned : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers for commercial properties or certified residential appraisers for residential properties whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Company reviews the assumptions and approaches utilized in the appraisal as well as the resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On a quarterly basis, the Company compares the actual selling price of collateral that has been liquidated to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. The following tables summarize the balances of assets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 . September 30, 2015 Total Level 1 Level 2 Level 3 (In thousands) Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 15,162 $ — $ 15,162 $ — Municipal securities 189,769 — 189,769 — Mortgage backed securities and collateralized mortgage obligations—residential: U.S Government-sponsored agencies 486,964 — 486,964 — Corporate obligations 9,216 — 9,216 — Mutual funds and other equities 1,982 1,982 — — Total $ 703,093 $ 1,982 $ 701,111 $ — December 31, 2014 Total Level 1 Level 2 Level 3 (In thousands) Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 21,427 $ — $ 21,427 $ — Municipal securities 173,037 — 173,037 — Mortgage backed securities and collateralized mortgage obligations—residential: U.S Government-sponsored agencies 542,399 — 542,399 — Corporate obligations 4,010 — 4,010 — Mutual funds and other equities 1,973 1,973 — — Total $ 742,846 $ 1,973 $ 740,873 $ — There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2015 and 2014 . The Company may be required to measure certain financial assets and liabilities at fair value on a nonrecurring basis. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The tables below represent assets measured at fair value on a nonrecurring basis at September 30, 2015 and December 31, 2014 and the related net losses (gains) recorded in earnings during three and nine months ended September 30, 2015 and 2014 . Basis (1) Fair Value at September 30, 2015 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Three Months Ended September 30, 2015 Net Losses (Gains) Recorded in Earnings During the Nine Months Ended September 30, 2015 (In thousands) Impaired loans: Real estate construction and land development: One-to-four family residential $ 865 $ 862 $ — $ — $ 862 $ — $ 102 Total real estate construction and land development 865 862 — — 862 — 102 Total impaired loans 865 862 — — 862 — 102 Total assets measured at fair value on a nonrecurring basis $ 865 $ 862 $ — $ — $ 862 $ — $ 102 (1) Basis represents the unpaid principal balance of impaired loans. Basis (1) Fair Value at December 31, 2014 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Three Months Ended September 30, 2014 Net Losses (Gains) Recorded in Earnings During the Nine Months Ended September 30, 2014 (In thousands) Impaired loans: Commercial business: Commercial and industrial $ 161 $ 138 $ — $ — $ 138 $ 118 $ (79 ) Non-owner occupied commercial real estate — — — — — 63 — Total commercial business 161 138 — — 138 181 (79 ) Real estate construction and land development: One-to-four family residential 2,094 1,725 — — 1,725 381 384 Total real estate construction and land development 2,094 1,725 — — 1,725 381 384 Consumer 49 45 — — 45 — — Total impaired loans 2,304 1,908 — — 1,908 562 305 Investment securities held to maturity: Mortgage back securities and collateralized mortgage obligations – residential: Private residential collateralized mortgage obligations 36 11 — 11 — — 45 Total assets measured at fair value on a nonrecurring basis $ 2,340 $ 1,919 $ — $ 11 $ 1,908 $ 562 $ 350 (1) Basis represents the unpaid principal balance of impaired loans and amortized cost of investment securities held to maturity. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014 . September 30, 2015 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans $ 862 Market approach Adjustment for differences between the comparable sales (8.50%) - 10.4%; 0.95% December 31, 2014 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans $ 1,908 Market approach Adjustment for differences between the comparable sales (47.5%) - 96.2%; 7.0% The nonrecurring fair value measurement disclosures in the tables above exclude impaired loans that are collateral dependent buy for which the collateral value exceeds the Company's recorded investment, as well as excludes impaired loans that are measured using the discounted cash flow approach because the discount rate used is generally not a fair value input. (b) Fair Value of Financial Instruments Because broadly traded markets do not exist for most of the Company’s financial instruments, the fair value calculations attempt to incorporate the effect of current market conditions at a specific time. These determinations are subjective in nature, involve uncertainties and matters of significant judgment and do not include tax ramifications; therefore, the results cannot be determined with precision, substantiated by comparison to independent markets and may not be realized in an actual sale or immediate settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results. For all of these reasons, the aggregation of the fair value calculations presented herein do not represent, and should not be construed to represent, the underlying value of the Company. The tables below present the carrying value amount of the Company’s financial instruments and their corresponding estimated fair values at the dates indicated. September 30, 2015 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 142,477 $ 142,477 $ 142,477 $ — $ — Other interest earning deposits 5,244 5,259 — 5,259 — Investment securities available for sale 703,093 703,093 1,982 701,111 — Investment securities held to maturity 32,832 34,023 — 34,023 — Federal Home Loan Bank stock 4,148 N/A N/A N/A N/A Loans held for sale 7,981 8,177 — 8,177 — Total loans receivable, net 2,375,040 2,393,455 — — 2,393,455 Accrued interest receivable 10,831 10,831 9 3,421 7,401 Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,616,659 $ 2,616,659 $ 2,616,659 $ — $ — Certificate of deposit accounts 437,539 436,977 — 436,977 — Total deposits $ 3,054,198 $ 3,053,636 $ 2,616,659 $ 436,977 $ — Securities sold under agreement to repurchase $ 22,829 $ 22,829 $ 22,829 $ — $ — Junior subordinated debentures 19,351 19,351 — — 19,351 Accrued interest payable 209 209 52 137 20 December 31, 2014 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 121,636 $ 121,636 $ 121,636 $ — $ — Other interest earning deposits 10,126 10,145 — 10,145 — Investment securities available for sale 742,846 742,846 1,973 740,873 — Investment securities held to maturity 35,814 36,874 — 36,874 — Federal Home Loan Bank stock 12,188 N/A N/A N/A N/A Loans held for sale 5,582 5,710 — 5,710 — Loans receivable, net of allowance for loan losses 2,223,348 2,279,081 — — 2,279,081 Accrued interest receivable 9,836 9,836 3 3,009 6,824 Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,380,934 $ 2,380,934 $ 2,380,934 $ — $ — Certificate of deposit accounts 525,397 525,768 — 525,768 — Total deposits $ 2,906,331 $ 2,906,702 $ 2,380,934 $ 525,768 $ — Securities sold under agreement to repurchase $ 32,181 $ 32,181 $ 32,181 $ — $ — Junior subordinated debentures 19,082 19,082 — — 19,082 Accrued interest payable 411 411 62 328 21 The methods and assumptions, not previously presented, used to estimate fair value are described as follows: Cash and Cash Equivalents: The fair value of financial instruments that are short-term or reprice frequently and that have little or no risk are considered to have a fair value equal to carrying value (Level 1). Other Interest Earning Deposits: These deposits with other banks have maturities greater than three months. The fair value is calculated based upon market prices for similar deposits (Level 2). Federal Home Loan Bank Stock : Federal Home Loan Bank ("FHLB") stock is not publicly traded; thus, it is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. At September 30, 2015 the stock was stock of the FHLB of Des Moines and at December 31, 2014 was stock of the FHLB of Seattle. The FHLB of Seattle merged with and into the FHLB of Des Moines effective in the second calendar quarter of 2015. Loans Held for Sale : The fair value of loans held for sale is estimated based upon binding contracts or quotes from third party investors. (Level 2). Total Loans Receivable, net : Except for impaired loans discussed previously, fair value is based on discounted cash flows using current market rates applied to the estimated life (Level 3). While these methodologies are permitted under U.S. GAAP, they are not based on the exit price concept of the fair value required under ASC 820-10, Fair Value Measurements and Disclosures , and generally produce a higher value. Accrued Interest Receivable/Payable : The fair value of accrued interest receivable/payable balances are determined using inputs and fair value measurements commensurate with the asset or liability from which the accrued interest is generated. The carrying amounts of accrued interest approximate fair value (Level 1, Level 2 and Level 3). Deposits : For deposits with no contractual maturity, the fair value is assumed to equal the carrying value (Level 1). The fair value of fixed maturity deposits is based on discounted cash flows using the difference between the deposit rate and the rates offered by the Company for deposits of similar remaining maturities (Level 2). Securities Sold Under Agreement to Repurchase : Securities sold under agreement to repurchase are short-term in nature and they reprice on a daily basis. Fair value financial instruments that are short-term or reprice frequently and that have little or no risk are considered to have a fair value equal to carrying value (Level 1). Junior Subordinated Debentures: The fair value is estimated using discounted cash flow analysis based on current rates for similar types of debt, which many be unobservable, and considering recent trading activity of similar instruments in markets which can be inactive. At September 30, 2015 , the fair value approximated the carrying value based on these valuation techniques (Level 3). Off-Balance Sheet Financial Instruments : The majority of our commitments to extend credit, standby letters of credit and commitments to sell mortgage loans carry current market interest rates if converted to loans. As such, no premium or discount was ascribed to these commitments (Level 1). They are excluded from the preceding tables. |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination There were no acquisitions or mergers completed during the three and nine months ended September 30, 2015 or the three months ended September 30, 2014. During the nine months ended September 30, 2014, the Company completed the Washington Banking Merger. Washington Banking Merger On October 23, 2013, the Company, along with the Bank, and Washington Banking and its wholly owned subsidiary bank, Whidbey, jointly announced the signing of a merger agreement for the Washington Banking Merger. The Washington Banking Merger was effective on May 1, 2014. Pursuant to the terms of the Washington Banking Merger, Washington Banking branches adopted the Heritage Bank name in all markets, with the exception of six branches in the Whidbey Island markets which have continued to operate using the Whidbey Island Bank name. The primary reasons for the merger were to expand the Company's geographic footprint consistent with its ongoing growth strategy and to achieve operational scale and realize efficiencies of a larger combined organization. Under the terms of the merger agreement, Washington Banking shareholders received 0.89000 shares of Heritage common stock and $2.75 in cash for each share of Washington Banking common stock. The terms of the merger agreement also provided for immediate vesting of the Washington Banking options and restricted stock awards units. At April 30, 2014, the number of Washington Banking common shares outstanding was 15,587,154 and the closing price of Heritage common stock was $16.16 . The total consideration transferred by the Company in conjunction with the Washington Banking Merger was $269.6 million and the total number of Heritage shares of common stock issued were 14,000,178 . The Company also incurred $489,000 in capitalized stock issuance costs. The total consideration transferred by the Company in the Washington Banking Merger consisted of the following: Washington Banking (In thousands) Consideration transferred Cash paid (1) $ 42,895 Fair value of common shares issued (2) 224,151 Fair value of restricted stock unit awards (3) 2,092 Fair value of common stock options 481 Total consideration transferred $ 269,619 (1) Includes $3,000 of cash paid due to fractional shares and $27,000 of cash paid to dissenting shareholders. (2) Total of 13,870,716 shares issued, which excludes 1,686 shares of dissenting shareholders that were paid in cash, and 165 fractional shares paid in cash. (3) Total number of converted shares was 129,462 . Fair value includes 26,783 shares which were forfeited by Washington Banking shareholder to pay applicable taxes, with a total fair value of $433,000 . The Washington Banking Merger resulted in $89.7 million of goodwill. This goodwill is not deductible for tax purposes. The transaction qualified as a tax-free reorganization for U.S. federal income tax purposes and Washington Banking shareholders did not recognize any taxable gain or loss in connection with the share exchange and the stock consideration received. During the three and nine months ended September 30, 2014 , the Company incurred Washington Banking merger-related costs (including system conversion costs) of approximately $1.3 million and $7.4 million , respectively. The Washington Banking Merger constitutes a business acquisition as defined by FASB ASC 805, Business Combinations . FASB ASC 805 establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired and the liabilities assumed. Heritage was considered the acquirer in the Washington Banking Merger. Accordingly, the estimates of fair values of the acquired bank's assets, including the identifiable intangible assets, and the assumed liabilities in the merger were measured and recorded as of the effective date of the merger. The fair value estimates of the assets acquired and liabilities assumed by the Company in the Washington Banking Merger were as follows: Washington Banking (In thousands) Assets Cash and cash equivalents $ 74,947 Investment securities available for sale 458,312 Loans held for sale 3,923 Loans receivable 895,978 Loans receivable, covered at merger date 107,050 FDIC indemnification asset 7,174 Other real estate owned ($5,122 covered by FDIC shared-loss agreements at the May 1, 2014 merger date) 7,121 Premises and equipment 31,776 FHLB stock 7,064 Bank owned life insurance 32,519 Accrued interest receivable 4,943 Other intangible assets 11,194 Prepaid expenses and other assets 14,852 Total assets acquired 1,656,853 Liabilities Deposits 1,433,894 Junior subordinated debentures 18,937 Accrued expenses and other liabilities 24,067 Total liabilities assumed 1,476,898 Net assets acquired $ 179,955 A summary of the net assets purchased, the fair value adjustments and resulting goodwill recognized from the Washington Banking Merger are presented in the following table. Goodwill on mergers represents the excess of the consideration transferred over the estimated fair value of the net assets acquired and liabilities assumed. Washington Banking (In thousands) Cost basis of net assets on merger date $ 181,782 Less: Consideration transferred (269,619 ) Fair value adjustments: Loans held for sale 86 Loans receivable (12,811 ) Loans receivable, covered at merger date 6,384 FDIC indemnification asset 357 Other real estate owned 387 Premises and equipment (1,540 ) Other intangible assets 10,216 Prepaid expenses and other assets (6,416 ) Deposits (1,737 ) Junior subordinated debentures 6,837 Accrued expenses and other liabilities (3,590 ) Goodwill recognized $ (89,664 ) The Company also considered the pro forma requirements of FASB ASC 805 and deemed it necessary for the Washington Banking Merger. The following table presents certain pro forma information, for illustrative purposes only, for the nine months ended September 30, 2014 as if the Washington Banking Merger had occurred on January 1, 2014. The estimated pro forma information combines the historical results of Washington Banking with the Company's consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the Washington Banking Merger occurred on January 1, 2014. In particular, no adjustments have been made to eliminate the impact of the Washington Banking loans previously accounted for under ASC 310-30 that may have been necessary if these loans had been recorded at fair value at January 1, 2014. The pro forma information also does not consider any changes to the provision for loan losses resulting from recorded loans at fair value. Additionally, Heritage expects to achieve further operating savings and other business synergies, including interest income growth, as a result of the Washington Banking Merger which are not reflected in the pro forma amounts in the following table. As a result, actual amounts will differ from the pro forma information presented. Nine Months Ended September 30, 2014 (Dollars In Thousands, except per share amounts) Net interest income $ 105,367 Net income $ 25,589 Basic earnings per common share $ 0.85 Diluted earnings per common share $ 0.85 |
Description of Business, Basi24
Description of Business, Basis of Presentation and Significant Accounting Policies and Recent Issued Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Heritage Financial Corporation ("Heritage" or the “Company”) is a bank holding company that was incorporated in the State of Washington in August 1997. The Company is primarily engaged in the business of planning, directing and coordinating the business activities of its wholly-owned subsidiary, Heritage Bank (the “Bank”). The Bank is a Washington-chartered commercial bank and its deposits are insured by the FDIC under the Deposit Insurance Fund. The Bank is headquartered in Olympia, Washington and conducts business from its 67 branch offices located throughout Washington State and the greater Portland, Oregon area. The Bank’s business consists primarily of commercial lending and deposit relationships with small businesses and their owners in its market areas and attracting deposits from the general public. The Bank also makes real estate construction and land development loans and consumer loans and originates first mortgage loans on residential properties primarily located in its market area. The Company has expanded its footprint through mergers and acquisitions. The largest of these transactions was the strategic merger with Washington Banking Company (“Washington Banking”) and its wholly owned subsidiary bank, Whidbey Island Bank ("Whidbey"). Effective May 1, 2014, Washington Banking merged with and into Heritage and Whidbey merged with and into Heritage Bank and this transaction is referred to herein as the "Washington Banking Merger". In connection with the Washington Banking Merger, Heritage also acquired as a subsidiary the Washington Banking Master Trust, a Delaware statutory business trust. Pursuant to the merger agreement, Heritage assumed the performance and observance of the covenants to be performed by Washington Banking under an indenture relating to $25.0 million in trust preferred securities issued in 2007 and the due and punctual payment of the principal of and premium and interest on such trust preferred securities. For additional information, see Note (8) Junior Subordinated Debentures. |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. It is recommended that these unaudited Condensed Consolidated Financial Statements and accompanying Notes be read with the audited Consolidated Financial Statements and the accompanying Notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 (“ 2014 Annual Form 10-K”). In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. In preparing the unaudited Condensed Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures. Management believes that the judgments, estimates and assumptions used in the preparation of the financial statements are appropriate based on the facts and circumstances at the time. Actual results, however, could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period’s presentation. Specifically, the Company has eliminated the classification of "noncovered" and "covered" loans from the Condensed Consolidated Financial Statements based on the termination of the FDIC shared-loss agreements during the three months ended September 30, 2015. For more information on the termination agreement, see Note (5) Indemnification Asset. Accordingly, all loans receivable previously reported as "noncovered" and those previously reported as "covered" by FDIC shared-loss agreements have been combined and reclassified as "loans receivable" for all periods presented. Reclassifications had no effect on prior periods' net income or stockholders’ equity. |
Significant Accounting Policies | Significant Accounting Policies The significant accounting policies used in preparation of the Company's Condensed Consolidated Financial Statements are disclosed in the 2014 Annual Form 10-K. There have not been any material changes in the Company's significant accounting policies from those contained in the 2014 Annual Form 10-K. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU" or "Update") 2014-09 , Revenue from Contracts with Customers , was issued in May 2014. Under this Update, FASB created a new Topic 606 which is in response to a joint initiative of FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and international financial reporting standards that would: • Remove inconsistencies and weaknesses in revenue requirements. • Provide a more robust framework for addressing revenue issues. • Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. • Provide more useful information to users of financial statements through improved disclosure requirements. • Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The Update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. The Company is currently evaluating the impact that this Update will have on its Condensed Consolidated Financial Statements. FASB ASU 2014-11 , Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures , was issued in June 2014. This Update aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements, such as secured borrowings. The guidance eliminates sale accounting and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The Update requires new and expanded disclosures that are effective for interim or annual reporting periods beginning after December 15, 2014, with certain requirements applicable for periods beginning after March 31, 2015. The adoption of this Update did not have a material impact on the Company's Condensed Consolidated Financial Statements. FASB ASU 2015-14 , Revenue from Contracts with Customers , was issued in August 2015 and defers the effective date of the above-mentioned ASU 2014-09 for certain entities. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is now permitted, but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is a public business entity and will not early adopt as permitted in this Update. The Company is currently evaluating the impact that this Update will have on its Condensed Consolidated Financial Statements upon adoption. FASB ASU 2015-14 , Business Combinations (Topic 805) , was issued in September 2015. Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the Update requires that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The Update did not have an impact on the Company's Condensed Consolidated Financial Statements as of September 30, 2015. |
Fair Value Measurements | Loans Receivable, net : Except for impaired loans discussed previously, fair value is based on discounted cash flows using current market rates applied to the estimated life (Level 3). While these methodologies are permitted under U.S. GAAP, they are not based on the exit price concept of the fair value required under ASC 820-10, Fair Value Measurements and Disclosures , and generally produce a higher value. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities available for sale | The amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities available for sale at the dates indicated were as follows: Securities Available for Sale September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 15,115 $ 47 $ — $ 15,162 Municipal securities 186,239 3,797 (267 ) 189,769 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 482,771 5,000 (807 ) 486,964 Corporate obligations 9,283 — (67 ) 9,216 Mutual funds and other equities 1,965 17 — 1,982 Total $ 695,373 $ 8,861 $ (1,141 ) $ 703,093 Securities Available for Sale December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 21,414 $ 44 $ (31 ) $ 21,427 Municipal securities 170,082 3,139 (184 ) 173,037 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 539,859 4,015 (1,475 ) 542,399 Corporate obligations 4,034 — (24 ) 4,010 Mutual funds and other equities 1,956 17 — 1,973 Total $ 737,345 $ 7,215 $ (1,714 ) $ 742,846 |
Schedule of securities held to maturity | The amortized cost, gross unrecognized gains, gross unrecognized losses and fair values of investment securities held to maturity at the dates indicated were as follows: Securities Held to Maturity September 30, 2015 Amortized Cost Gross Gross Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 1,578 $ 169 $ — $ 1,747 Municipal securities 21,362 619 — 21,981 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 9,892 454 (51 ) 10,295 Total $ 32,832 $ 1,242 $ (51 ) $ 34,023 Securities Held to Maturity December 31, 2014 Amortized Cost Gross Gross Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 1,591 $ 167 $ — $ 1,758 Municipal securities 22,486 643 (11 ) 23,118 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 10,866 364 (74 ) 11,156 Private residential collateralized mortgage obligations 871 75 (104 ) 842 Total $ 35,814 $ 1,249 $ (189 ) $ 36,874 |
Schedule of maturities of investment securities | The amortized cost and fair value of securities at September 30, 2015 , by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available for Sale Securities Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Due in one year or less $ 3,527 $ 3,534 $ 2,980 $ 2,989 Due after one year through three years 20,512 20,637 3,617 3,662 Due after three years through five years 41,714 42,327 6,747 7,066 Due after five years through ten years 159,618 162,025 16,370 17,168 Due after ten years 468,037 472,588 3,118 3,138 Investment securities with no stated maturities 1,965 1,982 — — Total $ 695,373 $ 703,093 $ 32,832 $ 34,023 |
Schedule of fair value and unrealized losses of available for sale investment securities | Available for sale investment securities with unrealized losses as of September 30, 2015 and December 31, 2014 were as follows: Securities Available for Sale September 30, 2015 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Municipal securities $ 30,047 $ (260 ) $ 923 $ (7 ) $ 30,970 $ (267 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 56,641 (255 ) 49,605 (552 ) 106,246 (807 ) Corporate obligations 8,221 (54 ) 995 (13 ) 9,216 (67 ) Total $ 94,909 $ (569 ) $ 51,523 $ (572 ) $ 146,432 $ (1,141 ) Securities Available for Sale December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 3,567 $ (31 ) $ — $ — $ 3,567 $ (31 ) Municipal securities 25,176 (184 ) — — 25,176 (184 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 182,970 (1,475 ) — — 182,970 (1,475 ) Corporate obligations 2,119 (24 ) — — 2,119 (24 ) Total $ 213,832 $ (1,714 ) $ — $ — $ 213,832 $ (1,714 ) |
Schedule of fair value and unrealized losses of held to maturity investment securities | Held to maturity investment securities with unrecognized losses as of September 30, 2015 and December 31, 2014 were as follows: Securities Held to Maturity September 30, 2015 Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses (In thousands) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies $ — $ — $ 2,028 $ (51 ) $ 2,028 $ (51 ) Total $ — $ — $ 2,028 $ (51 ) $ 2,028 $ (51 ) Securities Held to Maturity December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses (In thousands) Municipal securities $ 2,196 $ (11 ) $ — $ — $ 2,196 $ (11 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 2,553 (74 ) — — 2,553 (74 ) Private residential collateralized mortgage obligations 558 (104 ) — — 558 (104 ) Total $ 5,307 $ (189 ) $ — $ — $ 5,307 $ (189 ) |
Schedule of other-than-temporary impairment losses investment securities | The following table summarizes activity for the nine months ended September 30, 2014 related to the amount of impairments on held to maturity securities. There were no initial or subsequent impairments recorded during the nine months ended September 30, 2015. Life-to-Date Gross Other-Than-Temporary Impairments (1) Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings (In thousands) December 31, 2013 $ 2,603 $ 1,152 $ 1,451 Subsequent impairments 45 — 45 September 30, 2014 $ 2,648 $ 1,152 $ 1,496 |
Scheduled of amortized cost and fair value of securities pledged as collateral | The following table summarizes the amortized cost and fair value of available for sale and held to maturity securities that are pledged as collateral for the following obligations at September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Washington and Oregon state to secure public deposits $ 218,478 $ 222,564 $ 150,507 $ 153,785 Federal Reserve Bank of San Francisco and Federal Home Loan Bank to secure borrowing arrangements 509 510 4,430 4,460 Repurchase agreements 29,712 30,111 43,676 44,457 Other securities pledged 2,136 2,173 14,828 14,922 Total $ 250,835 $ 255,358 $ 213,441 $ 217,624 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of loans receivable | oans receivable at September 30, 2015 and December 31, 2014 consisted of the following portfolio segments and classes: September 30, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 618,390 $ 570,453 Owner-occupied commercial real estate 603,372 594,986 Non-owner occupied commercial real estate 703,771 643,636 Total commercial business 1,925,533 1,809,075 One-to-four family residential 70,577 69,530 Real estate construction and land development: One-to-four family residential 49,745 49,195 Five or more family residential and commercial properties 73,328 64,920 Total real estate construction and land development 123,073 114,115 Consumer 284,541 259,294 Gross loans receivable 2,403,724 2,252,014 Net deferred loan costs (fees) 320 (937 ) Loans receivable, net 2,404,044 2,251,077 Allowance for loan losses (29,004 ) (27,729 ) Total loans receivable, net $ 2,375,040 $ 2,223,348 |
Loans receivable by credit quality indicator | The following tables present the balance of the loans receivable by credit quality indicator as of September 30, 2015 and December 31, 2014 . September 30, 2015 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 584,337 $ 9,906 $ 23,839 $ 308 $ 618,390 Owner-occupied commercial real estate 571,283 11,955 19,878 256 603,372 Non-owner occupied commercial real estate 654,621 17,695 30,310 1,145 703,771 Total commercial business 1,810,241 39,556 74,027 1,709 1,925,533 One-to-four family residential 68,441 — 2,136 — 70,577 Real estate construction and land development: One-to-four family residential 40,356 1,361 8,028 — 49,745 Five or more family residential and commercial properties 68,633 — 4,695 — 73,328 Total real estate construction and land development 108,989 1,361 12,723 — 123,073 Consumer 276,929 4 7,608 — 284,541 Gross loans receivable $ 2,264,600 $ 40,921 $ 96,494 $ 1,709 $ 2,403,724 December 31, 2014 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 520,780 $ 14,618 $ 32,491 $ 2,564 $ 570,453 Owner-occupied commercial real estate 536,591 27,903 30,145 347 594,986 Non-owner occupied commercial real estate 593,918 17,683 32,035 — 643,636 Total commercial business 1,651,289 60,204 94,671 2,911 1,809,075 One-to-four family residential 66,599 740 2,191 — 69,530 Real estate construction and land development: One-to-four family residential 36,534 3,977 8,684 — 49,195 Five or more family residential and commercial properties 58,783 — 6,137 — 64,920 Total real estate construction and land development 95,317 3,977 14,821 — 114,115 Consumer 249,866 — 9,428 — 259,294 Gross loans receivable $ 2,063,071 $ 64,921 $ 121,111 $ 2,911 $ 2,252,014 |
Past due financing receivables | The Company performs an aging analysis of past due loans using the categories of 30-89 days past due and 90 or more days past due. This policy is consistent wi |
Recorded investment balance and related allowance for loan losses of accruing and non-accruing TDRs | The recorded investment balance and related allowance for loan losses of performing and nonaccrual TDR loans as of September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Performing TDRs Nonaccrual TDRs Performing TDRs Nonaccrual (In thousands) TDR loans $ 32,460 $ 6,639 $ 29,053 $ 7,256 Allowance for loan losses on TDR loans 2,033 655 1,908 1,035 |
Troubled debt restructurings on financing receivables | oans that were modified as TDRs during the three and nine months ended September 30, 2015 and 2014 are set forth in the following tables: Three Months Ended September 30, 2015 2014 Number of Contracts (1) Outstanding Number of Contracts (1) Outstanding Principal Balance (1)(2) (Dollars in thousands) Commercial business: Commercial and industrial 10 $ 3,598 16 $ 3,108 Owner-occupied commercial real estate 2 1,102 1 180 Non-owner occupied commercial real estate 1 1,082 — — Total commercial business 13 5,782 17 3,288 One-to-four family residential 0 — — — Real estate construction and land development: One-to-four family residential 2 1,087 4 1,223 Total real estate construction and land development 2 1,087 4 1,223 Consumer — — 1 68 Total TDR loans 15 $ 6,869 22 $ 4,579 Nine Months Ended September 30, 2015 2014 Number of Contracts (1) Outstanding Number of Contracts (1) Outstanding Principal Balance (1)(2) (Dollars in thousands) Commercial business: Commercial and industrial 29 $ 6,443 20 $ 7,730 Owner-occupied commercial real estate 7 2,201 2 523 Non-owner occupied commercial real estate 6 15,634 2 1,020 Total commercial business 42 24,278 24 9,273 Real estate construction and land development: One-to-four family residential 6 2,681 5 1,406 Five or more family residential and commercial properties 1 415 — — Total real estate construction and land development 7 3,096 5 1,406 Consumer 2 144 4 284 Total TDR loans 51 $ 27,518 33 $ 10,963 (1) Number of contracts and outstanding principal balance represent loans which have balances as of period end as certain loans may have been paid-down or charged-off during the three and nine months ended September 30, 2015 and 2014 . (2) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modification, the Bank’s recorded investment in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification), except when the modification was the initial advance on a one-to-four family residential real estate construction and land development loan under a master guidance line. There were no |
Troubled debt restructuring loans, subsequently defaulted | The loans modified during the previous twelve months ended September 30, 2015 and 2014 that subsequently defaulted during the three and nine months ended September 30, 2015 and 2014 are included in the following tables: Three Months Ended September 30, 2015 2014 Number of Contracts Outstanding Principal Balance Number of Outstanding (Dollars in thousands) Commercial business: Commercial and industrial 1 $ 98 3 $ 775 Non-owner occupied commercial real estate — — 2 77 Total commercial business 1 98 5 852 Total 1 $ 98 5 $ 852 |
Nonaccrual | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of nonaccrual loans | Nonaccrual loans, segregated by segments and classes of loans, were as follows as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 4,387 $ 5,784 Owner-occupied commercial real estate 2,806 2,295 Non-owner occupied commercial real estate — 517 Total commercial business 7,193 8,596 One-to-four family residential 40 — Real estate construction and land development: One-to-four family residential 2,612 2,831 Total real estate construction and land development 2,612 2,831 Consumer 62 145 Gross nonaccrual loans $ 9,907 $ 11,572 |
Impaired Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of impaired loans, including restructured | Impaired loans include nonaccrual loans and performing troubled debt restructured loans ("TDRs"). The table below excludes $11.7 million and $10.4 million , respectively, as of September 30, 2015 and December 31, 2014 , of certain performing TDR loans classified as PCI loans. The majority of these loans have remaining fair value discounts compared to outstanding principal balances and may not have further impairment. The balance of impaired loans as of September 30, 2015 and December 31, 2014 are set forth in the following tables. September 30, 2015 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 1,168 $ 7,675 $ 8,843 $ 10,953 $ 943 Owner-occupied commercial real estate — 5,150 5,150 5,233 1,016 Non-owner occupied commercial real estate 3,720 6,854 10,574 10,581 968 Total commercial business 4,888 19,679 24,567 26,767 2,927 One-to-four family residential — 277 277 278 86 Real estate construction and land development: One-to-four family residential 2,549 1,150 3,699 4,327 39 Five or more family residential and commercial properties — 1,984 1,984 1,984 196 Total real estate construction and land development 2,549 3,134 5,683 6,311 235 Consumer — 164 164 168 32 Total $ 7,437 $ 23,254 $ 30,691 $ 33,524 $ 3,280 December 31, 2014 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 3,374 $ 8,000 $ 11,374 $ 13,045 $ 1,334 Owner-occupied commercial real estate 360 3,553 3,913 3,937 979 Non-owner occupied commercial real estate 2,459 5,270 7,729 7,719 531 Total commercial business 6,193 16,823 23,016 24,701 2,844 One-to-four family residential — 245 245 245 75 Real estate construction and land development: One-to-four family residential 2,307 2,396 4,703 5,146 447 Five or more family residential and commercial properties — 2,056 2,056 2,056 234 Total real estate construction and land development 2,307 4,452 6,759 7,202 681 Consumer 33 178 211 216 58 Total $ 8,533 $ 21,698 $ 30,231 $ 32,364 $ 3,658 |
Schedule of average recorded investment impaired loans including restructuring loans | The average recorded investment of impaired loans for the three and nine months ended September 30, 2015 and 2014 are set forth in the following table. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Commercial business: Commercial and industrial $ 8,692 $ 15,296 $ 10,776 $ 15,115 Owner-occupied commercial real estate 4,882 3,811 4,151 3,500 Non-owner occupied commercial real estate 10,256 8,525 8,893 7,960 Total commercial business 23,830 27,632 23,820 26,575 One-to-four family residential 259 573 315 692 Real estate construction and land development: One-to-four family residential 3,639 5,689 4,312 5,640 Five or more family residential and commercial properties 1,997 2,091 2,032 2,178 Total real estate construction and land development 5,636 7,780 6,344 7,818 Consumer 159 970 329 930 Total $ 29,884 $ 36,955 $ 30,808 $ 36,015 |
PCI Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Purchased impaired loans | The following table reflects the outstanding principal balance and recorded investment at September 30, 2015 and December 31, 2014 of the PCI loans: September 30, 2015 December 31, 2014 Outstanding Principal Recorded Investment Outstanding Principal Recorded Investment (In thousands) Commercial business: Commercial and industrial $ 21,168 $ 15,721 $ 31,779 $ 25,174 Owner-occupied commercial real estate 27,397 24,729 41,236 36,874 Non-owner occupied commercial real estate 32,227 30,960 33,291 31,442 Total commercial business 80,792 71,410 106,306 93,490 One-to-four family residential 5,456 5,149 6,106 5,713 Real estate construction and land development: One-to-four family residential 7,256 4,379 8,559 5,531 Five or more family residential and commercial properties 3,104 3,231 4,861 4,765 Total real estate construction and land development 10,360 7,610 13,420 10,296 Consumer 6,914 7,989 8,928 9,772 Gross PCI loans $ 103,522 $ 92,158 $ 134,760 $ 119,271 |
Schedule of impaired purchased loans accretable yield | The following table summarizes the accretable yield on the PCI loans resulting from the Cowlitz, Pierce, NCB, and Valley acquisitions and the Washington Banking Merger for the three and nine months ended September 30, 2015 and 2014 . Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Balance at the beginning of the period $ 18,731 $ 27,320 $ 21,092 $ 17,249 Accretion (1,661 ) (2,254 ) (5,399 ) (5,989 ) Disposal and other 22 (2,756 ) (2,382 ) (4,527 ) Change in accretable yield 1,586 723 5,367 16,300 Balance at the end of the period $ 18,678 $ 23,033 $ 18,678 $ 23,033 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of changes in allowance for loan losses | The following tables detail activity in the allowance for loan losses disaggregated by segment and class for the three and nine months ended September 30, 2015 : Balance at Beginning of Period Charge-offs Recoveries Provision for Loan Losses Balance at End of Period (In thousands) Three Months Ended September 30, 2015 Commercial business: Commercial and industrial $ 9,891 $ (70 ) $ 59 $ 494 $ 10,374 Owner-occupied commercial real estate 4,587 — — (296 ) 4,291 Non-owner occupied commercial real estate 6,146 — — 592 6,738 Total commercial business 20,624 (70 ) 59 790 21,403 One-to-four family residential 1,271 — 12 (88 ) 1,195 Real estate construction and land development: One-to-four family residential 1,462 — — 79 1,541 Five or more family residential and commercial properties 1,062 — — (20 ) 1,042 Total real estate construction and land development 2,524 — — 59 2,583 Consumer 3,167 (278 ) 152 174 3,215 Unallocated 692 — — (84 ) 608 Total $ 28,278 $ (348 ) $ 223 $ 851 $ 29,004 Nine Months Ended September 30, 2015 Commercial business: Commercial and industrial $ 10,553 $ (1,392 ) $ 447 $ 766 $ 10,374 Owner-occupied commercial real estate 4,095 — — 196 4,291 Non-owner occupied commercial real estate 5,538 (188 ) — 1,388 6,738 Total commercial business 20,186 (1,580 ) 447 2,350 21,403 One-to-four family residential 1,200 — 13 (18 ) 1,195 Real estate construction and land development: One-to-four family residential 1,786 (106 ) 100 (239 ) 1,541 Five or more family residential and commercial properties 972 — — 70 1,042 Total real estate construction and land development 2,758 (106 ) 100 (169 ) 2,583 Consumer 2,769 (1,208 ) 362 1,292 3,215 Unallocated 816 — — (208 ) 608 Total $ 27,729 $ (2,894 ) $ 922 $ 3,247 $ 29,004 The following table details the balance in the allowance for loan losses disaggregated on the basis of the Company's impairment method as of September 30, 2015 . Loans individually evaluated for impairment Loans collectively evaluated for impairment PCI loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 943 $ 6,711 $ 2,720 $ 10,374 Owner-occupied commercial real estate 1,016 1,780 1,495 4,291 Non-owner occupied commercial real estate 968 3,431 2,339 6,738 Total commercial business 2,927 11,922 6,554 21,403 One-to-four family residential 86 584 525 1,195 Real estate construction and land development: One-to-four family residential 39 492 1,010 1,541 Five or more family residential and commercial properties 196 755 91 1,042 Total real estate construction and land development 235 1,247 1,101 2,583 Consumer 32 2,293 890 3,215 Unallocated — 608 — 608 Total $ 3,280 $ 16,654 $ 9,070 $ 29,004 The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method as of September 30, 2015 : Loans individually evaluated for impairment Loans collectively evaluated for impairment PCI loans Total Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 8,843 $ 593,826 $ 15,721 $ 618,390 Owner-occupied commercial real estate 5,150 573,493 24,729 603,372 Non-owner occupied commercial real estate 10,574 662,237 30,960 703,771 Total commercial business 24,567 1,829,556 71,410 1,925,533 One-to-four family residential 277 65,151 5,149 70,577 Real estate construction and land development: One-to-four family residential 3,699 41,667 4,379 49,745 Five or more family residential and commercial properties 1,984 68,113 3,231 73,328 Total real estate construction and land development 5,683 109,780 7,610 123,073 Consumer 164 276,388 7,989 284,541 Total $ 30,691 $ 2,280,875 $ 92,158 $ 2,403,724 The following tables detail activity in the allowance for loan losses disaggregated by segment and class for the three and nine months ended September 30, 2014 . Balance at Beginning of Period Charge-offs Recoveries Provision for Loan Losses Balance at End of Period (In thousands) Three Months Ended September 30, 2014 Commercial business: Commercial and industrial $ 11,304 $ (309 ) $ 43 $ 234 $ 11,272 Owner-occupied commercial real estate 4,200 (128 ) (9 ) 4,063 Non-owner occupied commercial real estate 5,685 (72 ) — 163 5,776 Total commercial business 21,189 (509 ) 43 388 21,111 One-to-four family residential 1,155 — — 200 1,355 Real estate construction and land development: One-to-four family residential 1,533 — — 235 1,768 Five or more family residential and commercial properties 1,630 — — (926 ) 704 Total real estate construction and land development 3,163 — — (691 ) 2,472 Consumer 2,175 (315 ) 46 884 2,790 Unallocated 801 — — (187 ) 614 Total $ 28,483 $ (824 ) $ 89 $ 594 $ 28,342 Nine Months Ended September 30, 2014 Commercial business: Commercial and industrial $ 13,478 $ (1,791 ) $ 544 $ (959 ) $ 11,272 Owner-occupied commercial real estate 4,049 (128 ) 142 4,063 Non-owner occupied commercial real estate 5,326 (72 ) — 522 5,776 Total commercial business 22,853 (1,991 ) 544 (295 ) 21,111 One-to-four family residential 1,100 — — 255 1,355 Real estate construction and land development: One-to-four family residential 1,720 (345 ) 43 350 1,768 Five or more family residential and commercial properties 953 — — (249 ) 704 Total real estate construction and land development 2,673 (345 ) 43 101 2,472 Consumer 1,597 (557 ) 81 1,669 2,790 Unallocated 601 — — 13 614 Total $ 28,824 $ (2,893 ) $ 668 $ 1,743 $ 28,342 The following table details the balance in the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2014. Loans individually evaluated for impairment Loans collectively evaluated for impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,334 $ 6,557 $ 2,662 $ 10,553 Owner-occupied commercial real estate 979 1,643 1,473 4,095 Non-owner occupied commercial real estate 531 2,547 2,460 5,538 Total commercial business 2,844 10,747 6,595 20,186 One-to-four family residential 75 538 587 1,200 Real estate construction and land development: One-to-four family residential 447 322 1,017 1,786 Five or more family residential and commercial properties 234 650 88 972 Total real estate construction and land development 681 972 1,105 2,758 Consumer 58 1,943 768 2,769 Unallocated — 816 — 816 Total $ 3,658 $ 15,016 $ 9,055 $ 27,729 |
Schedule of loan receivables on the basis of impairment method | The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method for the year ended December 31, 2014 : Loans individually evaluated for impairment Loans collectively evaluated for impairment PCI loans Total Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 11,374 $ 533,905 $ 25,174 $ 570,453 Owner-occupied commercial real estate 3,913 554,199 36,874 594,986 Non-owner occupied commercial real estate 7,729 604,465 31,442 643,636 Total commercial business 23,016 1,692,569 93,490 1,809,075 One-to-four family residential 245 63,572 5,713 69,530 Real estate construction and land development: One-to-four family residential 4,703 38,961 5,531 49,195 Five or more family residential and commercial properties 2,056 58,099 4,765 64,920 Total real estate construction and land development 6,759 97,060 10,296 114,115 Consumer 211 249,311 9,772 259,294 Total $ 30,231 $ 2,102,512 $ 119,271 $ 2,252,014 |
FDIC Indemnification Asset (Tab
FDIC Indemnification Asset (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of FDIC indemnification asset | Changes in the FDIC indemnification asset during the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Balance at the beginning of the period $ 388 $ 8,887 $ 1,116 $ 4,382 Additions as a result of the Washington Banking Merger — — — 7,174 Cash payments received or receivable from the FDIC — (3,102 ) (231 ) (5,843 ) FDIC share of additional estimated (gains) losses — (249 ) (352 ) 556 Net amortization — (398 ) (145 ) (1,131 ) Change due to termination of FDIC shared-loss agreements (388 ) — (388 ) — Balance at the end of the period $ — $ 5,138 $ — $ 5,138 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Changes in other real estate owned | Changes in other real estate owned during the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Balance at the beginning of the period $ 3,017 $ 8,106 $ 3,355 $ 4,559 Additions 611 459 2,424 677 Additions from acquisitions — — — 7,121 Proceeds from dispositions (1,560 ) (1,315 ) (3,199 ) (5,173 ) Gain (loss) on sales, net 3 (378 ) (94 ) (312 ) Valuation adjustment — — (415 ) — Balance at the end of the period $ 2,071 $ 6,872 $ 2,071 $ 6,872 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in other intangible assets | The following table presents the change in the other intangible assets for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Balance at the beginning of the period $ 9,835 $ 12,164 $ 10,889 $ 1,615 Additions as a result of acquisitions — — — 11,194 Less: Amortization 523 603 1,577 1,248 Balance at the end of the period $ 9,312 $ 11,561 $ 9,312 $ 11,561 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of earnings per share reconciliation | The following table illustrates the reconciliation of weighted average shares used for earnings per common share computations for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (Dollars in thousands) Net income: Net income $ 9,492 $ 7,068 $ 27,996 $ 13,759 Less: Dividends and undistributed earnings allocated to participating securities (84 ) (59 ) (247 ) (114 ) Net income allocated to common shareholders $ 9,408 $ 7,009 $ 27,749 $ 13,645 Basic: Weighted average common shares outstanding 29,960,133 30,293,559 30,086,057 24,085,132 Less: Restricted stock awards (263,404 ) (230,134 ) (268,999 ) (198,255 ) Total basic weighted average common shares outstanding 29,696,729 30,063,425 29,817,058 23,886,877 Diluted: Basic weighted average common shares outstanding 29,696,729 30,063,425 29,817,058 23,886,877 Incremental shares from stock options 22,395 36,671 22,718 50,539 Total diluted weighted average common shares outstanding 29,719,124 30,100,096 29,839,776 23,937,416 |
Schedule of dividends activity | The following table summarizes the dividend activity for the nine months ended September 30, 2015 and calendar year 2014. Declared Cash Dividend per Share Record Date Paid Date January 29, 2014 $0.08 February 10, 2014 February 24, 2014 March 27, 2014 $0.08 April 8, 2014 April 23, 2014 July 24, 2014 $0.09 August 7, 2014 August 21, 2014 October 23, 2014 $0.09 November 6, 2014 November 20, 2014 November 11, 2014 $0.16 December 2, 2014 December 12, 2014 January 28, 2015 $0.10 February 10, 2015 February 24, 2015 April 22, 2015 $0.11 May 7, 2015 May 21, 2015 July 22, 2015 $0.11 August 6, 2015 August 20, 2015 |
Schedule of repurchased shares | The following table provides total repurchased shares and average share prices under the applicable plans for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Plan Total (1) Tenth Plan Repurchased shares — 108,075 — 108,075 704,975 Stock repurchase average share price $ — $ 16.88 $ — $ 16.88 $ 15.85 Eleventh Plan Repurchased shares — — 441,966 — 441,966 Stock repurchase average share price $ — $ — $ 16.64 $ — $ 16.64 (1) Represents shares repurchased and average share price paid during the duration of the repurchase plans. |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income (AOCI) by component | The changes in accumulated other comprehensive income (loss) (“AOCI”) by component, during the three and nine months ended September 30, 2015 and 2014 are as follows: Three Months Ended September 30, 2015 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of period $ 2,198 $ — $ 2,198 Other comprehensive income before reclassification 3,064 — 3,064 Amounts reclassified from AOCI for gain on sale of investment securities included in net income (255 ) — (255 ) Net current period other comprehensive income 2,809 — 2,809 Balance of AOCI at the end of period $ 5,007 $ — $ 5,007 (1) All amounts are net of tax. Nine Months Ended September 30, 2015 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of period $ 3,567 $ (189 ) $ 3,378 Other comprehensive income before reclassification 2,324 11 2,335 Amounts reclassified from AOCI for gain on sale of investment securities included in net income (884 ) 178 (706 ) Net current period other comprehensive income 1,440 189 1,629 Balance of AOCI at the end of period $ 5,007 $ — $ 5,007 (1) All amounts are net of tax. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Compensation [Abstract] | |
Schedule of stock option activity | The following table summarizes the stock option activity for the nine months ended September 30, 2015 and 2014 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (In thousands) Outstanding at December 31, 2013 194,482 $ 15.82 Granted (1) 90,248 10.72 Exercised (70,854 ) 10.79 Forfeited or expired (43,984 ) 22.80 Outstanding at September 30, 2014 169,892 $ 13.41 3.30 $ 455 Outstanding at December 31, 2014 156,407 $ 13.59 Granted — — Exercised (53,198 ) 12.45 Forfeited or expired (12,278 ) 16.73 Outstanding at September 30, 2015 90,931 $ 13.84 3.05 $ 456 Vested and expected to vest at September 30, 2015 90,931 $ 13.84 3.05 $ 456 Exercisable at September 30, 2015 90,931 $ 13.84 3.05 $ 456 |
Schedule of restricted stock award activity | The following tables summarize the restricted and unrestricted stock award activity for the nine months ended September 30, 2015 and 2014 : Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2013 202,939 $ 14.29 Granted 130,548 16.03 Vested (73,336 ) 14.26 Forfeited (6,806 ) 14.66 Nonvested at September 30, 2014 253,345 $ 15.19 Nonvested at December 31, 2014 238,669 $ 15.20 Granted 121,320 16.72 Vested (91,642 ) 15.12 Forfeited (2,837 ) 15.71 Nonvested at September 30, 2015 265,510 $ 15.92 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements of assets on a recurring basis | The following tables summarize the balances of assets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 . September 30, 2015 Total Level 1 Level 2 Level 3 (In thousands) Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 15,162 $ — $ 15,162 $ — Municipal securities 189,769 — 189,769 — Mortgage backed securities and collateralized mortgage obligations—residential: U.S Government-sponsored agencies 486,964 — 486,964 — Corporate obligations 9,216 — 9,216 — Mutual funds and other equities 1,982 1,982 — — Total $ 703,093 $ 1,982 $ 701,111 $ — December 31, 2014 Total Level 1 Level 2 Level 3 (In thousands) Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 21,427 $ — $ 21,427 $ — Municipal securities 173,037 — 173,037 — Mortgage backed securities and collateralized mortgage obligations—residential: U.S Government-sponsored agencies 542,399 — 542,399 — Corporate obligations 4,010 — 4,010 — Mutual funds and other equities 1,973 1,973 — — Total $ 742,846 $ 1,973 $ 740,873 $ — |
Fair value measurements of assets on a nonrecurring basis | The tables below represent assets measured at fair value on a nonrecurring basis at September 30, 2015 and December 31, 2014 and the related net losses (gains) recorded in earnings during three and nine months ended September 30, 2015 and 2014 . Basis (1) Fair Value at September 30, 2015 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Three Months Ended September 30, 2015 Net Losses (Gains) Recorded in Earnings During the Nine Months Ended September 30, 2015 (In thousands) Impaired loans: Real estate construction and land development: One-to-four family residential $ 865 $ 862 $ — $ — $ 862 $ — $ 102 Total real estate construction and land development 865 862 — — 862 — 102 Total impaired loans 865 862 — — 862 — 102 Total assets measured at fair value on a nonrecurring basis $ 865 $ 862 $ — $ — $ 862 $ — $ 102 (1) Basis represents the unpaid principal balance of impaired loans. Basis (1) Fair Value at December 31, 2014 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Three Months Ended September 30, 2014 Net Losses (Gains) Recorded in Earnings During the Nine Months Ended September 30, 2014 (In thousands) Impaired loans: Commercial business: Commercial and industrial $ 161 $ 138 $ — $ — $ 138 $ 118 $ (79 ) Non-owner occupied commercial real estate — — — — — 63 — Total commercial business 161 138 — — 138 181 (79 ) Real estate construction and land development: One-to-four family residential 2,094 1,725 — — 1,725 381 384 Total real estate construction and land development 2,094 1,725 — — 1,725 381 384 Consumer 49 45 — — 45 — — Total impaired loans 2,304 1,908 — — 1,908 562 305 Investment securities held to maturity: Mortgage back securities and collateralized mortgage obligations – residential: Private residential collateralized mortgage obligations 36 11 — 11 — — 45 Total assets measured at fair value on a nonrecurring basis $ 2,340 $ 1,919 $ — $ 11 $ 1,908 $ 562 $ 350 (1) Basis represents the unpaid principal balance of impaired loans and amortized cost of investment securities held to maturity. |
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014 . September 30, 2015 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans $ 862 Market approach Adjustment for differences between the comparable sales (8.50%) - 10.4%; 0.95% December 31, 2014 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans $ 1,908 Market approach Adjustment for differences between the comparable sales (47.5%) - 96.2%; 7.0% |
Schedule of carrying value and fair value of financial instruments | September 30, 2015 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 142,477 $ 142,477 $ 142,477 $ — $ — Other interest earning deposits 5,244 5,259 — 5,259 — Investment securities available for sale 703,093 703,093 1,982 701,111 — Investment securities held to maturity 32,832 34,023 — 34,023 — Federal Home Loan Bank stock 4,148 N/A N/A N/A N/A Loans held for sale 7,981 8,177 — 8,177 — Total loans receivable, net 2,375,040 2,393,455 — — 2,393,455 Accrued interest receivable 10,831 10,831 9 3,421 7,401 Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,616,659 $ 2,616,659 $ 2,616,659 $ — $ — Certificate of deposit accounts 437,539 436,977 — 436,977 — Total deposits $ 3,054,198 $ 3,053,636 $ 2,616,659 $ 436,977 $ — Securities sold under agreement to repurchase $ 22,829 $ 22,829 $ 22,829 $ — $ — Junior subordinated debentures 19,351 19,351 — — 19,351 Accrued interest payable 209 209 52 137 20 December 31, 2014 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 121,636 $ 121,636 $ 121,636 $ — $ — Other interest earning deposits 10,126 10,145 — 10,145 — Investment securities available for sale 742,846 742,846 1,973 740,873 — Investment securities held to maturity 35,814 36,874 — 36,874 — Federal Home Loan Bank stock 12,188 N/A N/A N/A N/A Loans held for sale 5,582 5,710 — 5,710 — Loans receivable, net of allowance for loan losses 2,223,348 2,279,081 — — 2,279,081 Accrued interest receivable 9,836 9,836 3 3,009 6,824 Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,380,934 $ 2,380,934 $ 2,380,934 $ — $ — Certificate of deposit accounts 525,397 525,768 — 525,768 — Total deposits $ 2,906,331 $ 2,906,702 $ 2,380,934 $ 525,768 $ — Securities sold under agreement to repurchase $ 32,181 $ 32,181 $ 32,181 $ — $ — Junior subordinated debentures 19,082 19,082 — — 19,082 Accrued interest payable 411 411 62 328 21 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of business combination | The fair value estimates of the assets acquired and liabilities assumed by the Company in the Washington Banking Merger were as follows: Washington Banking (In thousands) Assets Cash and cash equivalents $ 74,947 Investment securities available for sale 458,312 Loans held for sale 3,923 Loans receivable 895,978 Loans receivable, covered at merger date 107,050 FDIC indemnification asset 7,174 Other real estate owned ($5,122 covered by FDIC shared-loss agreements at the May 1, 2014 merger date) 7,121 Premises and equipment 31,776 FHLB stock 7,064 Bank owned life insurance 32,519 Accrued interest receivable 4,943 Other intangible assets 11,194 Prepaid expenses and other assets 14,852 Total assets acquired 1,656,853 Liabilities Deposits 1,433,894 Junior subordinated debentures 18,937 Accrued expenses and other liabilities 24,067 Total liabilities assumed 1,476,898 Net assets acquired $ 179,955 A summary of the net assets purchased, the fair value adjustments and resulting goodwill recognized from the Washington Banking Merger are presented in the following table. Goodwill on mergers represents the excess of the consideration transferred over the estimated fair value of the net assets acquired and liabilities assumed. Washington Banking (In thousands) Cost basis of net assets on merger date $ 181,782 Less: Consideration transferred (269,619 ) Fair value adjustments: Loans held for sale 86 Loans receivable (12,811 ) Loans receivable, covered at merger date 6,384 FDIC indemnification asset 357 Other real estate owned 387 Premises and equipment (1,540 ) Other intangible assets 10,216 Prepaid expenses and other assets (6,416 ) Deposits (1,737 ) Junior subordinated debentures 6,837 Accrued expenses and other liabilities (3,590 ) Goodwill recognized $ (89,664 ) The total consideration transferred by the Company in the Washington Banking Merger consisted of the following: Washington Banking (In thousands) Consideration transferred Cash paid (1) $ 42,895 Fair value of common shares issued (2) 224,151 Fair value of restricted stock unit awards (3) 2,092 Fair value of common stock options 481 Total consideration transferred $ 269,619 (1) Includes $3,000 of cash paid due to fractional shares and $27,000 of cash paid to dissenting shareholders. (2) Total of 13,870,716 shares issued, which excludes 1,686 shares of dissenting shareholders that were paid in cash, and 165 fractional shares paid in cash. (3) Total number of converted shares was 129,462 . Fair value includes 26,783 shares which were forfeited by Washington Banking shareholder to pay applicable taxes, with a total fair value of $433,000 . |
Unaudited pro forma information | The following table presents certain pro forma information, for illustrative purposes only, for the nine months ended September 30, 2014 as if the Washington Banking Merger had occurred on January 1, 2014. The estimated pro forma information combines the historical results of Washington Banking with the Company's consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the Washington Banking Merger occurred on January 1, 2014. In particular, no adjustments have been made to eliminate the impact of the Washington Banking loans previously accounted for under ASC 310-30 that may have been necessary if these loans had been recorded at fair value at January 1, 2014. The pro forma information also does not consider any changes to the provision for loan losses resulting from recorded loans at fair value. Additionally, Heritage expects to achieve further operating savings and other business synergies, including interest income growth, as a result of the Washington Banking Merger which are not reflected in the pro forma amounts in the following table. As a result, actual amounts will differ from the pro forma information presented. Nine Months Ended September 30, 2014 (Dollars In Thousands, except per share amounts) Net interest income $ 105,367 Net income $ 25,589 Basic earnings per common share $ 0.85 Diluted earnings per common share $ 0.85 |
Description of Business, Basi36
Description of Business, Basis of Presentation and Significant Accounting Policies and Recent Issued Accounting Policies (Details) | Sep. 30, 2015Branch | Dec. 31, 2007USD ($) |
Business Description and Basis of Presentation [Line Items] | ||
Issued amount | $ | $ 25,000,000 | |
Heritage Bank | ||
Business Description and Basis of Presentation [Line Items] | ||
Number of branches operating | 67 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Securities Available for Sale | ||
Amortized Cost | $ 695,373 | $ 737,345 |
Gross Unrealized Gains | 8,861 | 7,215 |
Gross Unrealized Losses | (1,141) | (1,714) |
Fair Value | 703,093 | 742,846 |
Securities Held to Maturity | ||
Amortized Cost | 32,832 | 35,814 |
Gross Unrecognized Gains | 1,242 | 1,249 |
Gross Unrecognized Losses | (51) | (189) |
Fair Value | 34,023 | 36,874 |
U.S. Treasury and U.S. Government-sponsored agencies | ||
Securities Available for Sale | ||
Amortized Cost | 15,115 | 21,414 |
Gross Unrealized Gains | 47 | 44 |
Gross Unrealized Losses | 0 | (31) |
Fair Value | 15,162 | 21,427 |
Securities Held to Maturity | ||
Amortized Cost | 1,578 | 1,591 |
Gross Unrecognized Gains | 169 | 167 |
Gross Unrecognized Losses | 0 | 0 |
Fair Value | 1,747 | 1,758 |
Municipal securities | ||
Securities Available for Sale | ||
Amortized Cost | 186,239 | 170,082 |
Gross Unrealized Gains | 3,797 | 3,139 |
Gross Unrealized Losses | (267) | (184) |
Fair Value | 189,769 | 173,037 |
Securities Held to Maturity | ||
Amortized Cost | 21,362 | 22,486 |
Gross Unrecognized Gains | 619 | 643 |
Gross Unrecognized Losses | 0 | (11) |
Fair Value | 21,981 | 23,118 |
U.S. Government-sponsored agencies | ||
Securities Available for Sale | ||
Amortized Cost | 482,771 | 539,859 |
Gross Unrealized Gains | 5,000 | 4,015 |
Gross Unrealized Losses | (807) | (1,475) |
Fair Value | 486,964 | 542,399 |
Securities Held to Maturity | ||
Amortized Cost | 9,892 | 10,866 |
Gross Unrecognized Gains | 454 | 364 |
Gross Unrecognized Losses | (51) | (74) |
Fair Value | 10,295 | 11,156 |
Corporate obligations | ||
Securities Available for Sale | ||
Amortized Cost | 9,283 | 4,034 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (67) | (24) |
Fair Value | 9,216 | 4,010 |
Mutual funds and other equities | ||
Securities Available for Sale | ||
Amortized Cost | 1,965 | 1,956 |
Gross Unrealized Gains | 17 | 17 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 1,982 | 1,973 |
Private residential collateralized mortgage obligations | ||
Securities Held to Maturity | ||
Amortized Cost | 871 | |
Gross Unrecognized Gains | 75 | |
Gross Unrecognized Losses | (104) | |
Fair Value | $ 842 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Securities Available for Sale, Amortized Cost | ||
Due in one year or less | $ 3,527 | |
Due after one year through three years | 20,512 | |
Due after three years through five years | 41,714 | |
Due after five years through ten years | 159,618 | |
Due after ten years | 468,037 | |
Investment securities with no stated maturities | 1,965 | |
Amortized Cost | 695,373 | $ 737,345 |
Securities Available for Sale, Fair Value | ||
Due in one year or less | 3,534 | |
Due after one year through three years | 20,637 | |
Due after three years through five years | 42,327 | |
Due after five years through ten years | 162,025 | |
Due after ten years | 472,588 | |
Investment securities with no stated maturities | 1,982 | |
Fair Value | 703,093 | 742,846 |
Securities Held to Maturity, Amortized Cost | ||
Due in one year or less | 2,980 | |
Due after one year through three years | 3,617 | |
Due after three years through five years | 6,747 | |
Due after five years through ten years | 16,370 | |
Due after ten years | 3,118 | |
Investment securities with no stated maturities | 0 | |
Amortized Cost | 32,832 | 35,814 |
Securities Held to Maturity, Fair Value | ||
Due in one year or less | 2,989 | |
Due after one year through three years | 3,662 | |
Due after three years through five years | 7,066 | |
Due after five years through ten years | 17,168 | |
Due after ten years | 3,138 | |
Investment securities with no stated maturities | 0 | |
Fair Value | $ 34,023 | $ 36,874 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | $ 94,909 | $ 213,832 |
12 Months or Longer | 51,523 | 0 |
Total | 146,432 | 213,832 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | ||
Less than 12 Months | (569) | (1,714) |
12 Months or Longer | (572) | 0 |
Total | (1,141) | (1,714) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | 0 | 5,307 |
12 Months or Longer | 2,028 | 0 |
Total | 2,028 | 5,307 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrecognized Losses | ||
Less than 12 Months | 0 | (189) |
12 Months or Longer | (51) | 0 |
Total | (51) | (189) |
U.S. Treasury and U.S. Government-sponsored agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | 3,567 | |
12 Months or Longer | 0 | |
Total | 3,567 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | ||
Less than 12 Months | (31) | |
12 Months or Longer | 0 | |
Total | (31) | |
Municipal securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | 30,047 | 25,176 |
12 Months or Longer | 923 | 0 |
Total | 30,970 | 25,176 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | ||
Less than 12 Months | (260) | (184) |
12 Months or Longer | (7) | 0 |
Total | (267) | (184) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | 2,196 | |
12 Months or Longer | 0 | |
Total | 2,196 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrecognized Losses | ||
Less than 12 Months | (11) | |
12 Months or Longer | 0 | |
Total | (11) | |
U.S. Government-sponsored agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | 56,641 | 182,970 |
12 Months or Longer | 49,605 | 0 |
Total | 106,246 | 182,970 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | ||
Less than 12 Months | (255) | (1,475) |
12 Months or Longer | (552) | 0 |
Total | (807) | (1,475) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | 0 | 2,553 |
12 Months or Longer | 2,028 | 0 |
Total | 2,028 | 2,553 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrecognized Losses | ||
Less than 12 Months | 0 | (74) |
12 Months or Longer | (51) | 0 |
Total | (51) | (74) |
Corporate obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | 8,221 | 2,119 |
12 Months or Longer | 995 | 0 |
Total | 9,216 | 2,119 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | ||
Less than 12 Months | (54) | (24) |
12 Months or Longer | (13) | 0 |
Total | $ (67) | (24) |
Private residential collateralized mortgage obligations | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | ||
Less than 12 Months | 558 | |
12 Months or Longer | 0 | |
Total | 558 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrecognized Losses | ||
Less than 12 Months | (104) | |
12 Months or Longer | 0 | |
Total | $ (104) |
Investment Securities - Impairm
Investment Securities - Impairment Activity on Held to Maturity Securities(Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | |
Investment Holdings [Line Items] | |||||
private residential collateralized mortgage obligation carrying value | $ 829 | ||||
Held-to-maturity Securities, Sold Security, Realized Gain (Loss) | $ 125 | ||||
Schedule of other-than-temporary impairment losses investment securities | |||||
Life-to-Date Gross Other-Than-Temporary Impairments, Beginning Balance | $ 2,603 | ||||
Life-to-Date Gross Other-Than-Temporary Impairments, Ending Balance | $ 2,648 | 2,603 | |||
Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income, Beginning Balance | 1,152 | ||||
Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income, Ending Balance | 1,152 | 1,152 | |||
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Beginning Balance | 1,451 | ||||
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Subsequent impairments | $ 0 | 0 | $ 0 | 45 | |
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Ending Balance | $ 1,496 | 1,496 | |||
Subsequent impairments | |||||
Schedule of other-than-temporary impairment losses investment securities | |||||
Life-to-Date Gross Other-Than-Temporary Impairments, Subsequent impairments | 45 | ||||
Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income, Subsequent impairments | 0 | ||||
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Subsequent impairments | $ 45 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | $ 250,835 | $ 213,441 |
Fair Value | 255,358 | 217,624 |
Washington and Oregon state to secure public deposits | ||
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | 218,478 | 150,507 |
Fair Value | 222,564 | 153,785 |
Federal Reserve Bank of San Francisco and Federal Home Loan Bank to secure borrowing arrangements | ||
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | 509 | 4,430 |
Fair Value | 510 | 4,460 |
Repurchase agreements | ||
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | 29,712 | 43,676 |
Fair Value | 30,111 | 44,457 |
Other securities pledged | ||
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | 2,136 | 14,828 |
Fair Value | $ 2,173 | $ 14,922 |
Investment Securities (Details
Investment Securities (Details Textual) | 9 Months Ended | ||
Sep. 30, 2015USD ($)security | Sep. 30, 2014loan | Dec. 31, 2014USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Securities classified as trading | $ 0 | $ 0 | |
Average prepayment rate (percent) | 6.00% | ||
Discount interest rate (percent) | 9.40% | ||
OTTI, unrealized losses | $ 0 | ||
Pledge securities, carrying value | $ 254,200,000 | $ 216,700,000 | |
Private residential collateralized mortgage obligations | |||
Investment Holdings [Line Items] | |||
Mortgage backed securities evaluation non temporary decline number (securities) | 0 | 4 |
Loans Receivable - Loan Origina
Loans Receivable - Loan Origination/Risk Management (Details) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2015USD ($)Segment | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loan segments | Segment | 4 | |||||
Maximum percentage consumer loans (percent) | 80.00% | |||||
Gross loans receivable | $ 2,403,724 | $ 2,252,014 | ||||
Net deferred loan fees | 320 | (937) | ||||
Loans receivable, net | 2,404,044 | 2,251,077 | ||||
Allowance for loan losses | (29,004) | $ (28,278) | (27,729) | $ (28,342) | $ (28,483) | $ (28,824) |
Loans receivable, net of allowance for loan losses | $ 2,375,040 | 2,223,348 | ||||
One-to-four Family Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Maximum percent of appraised value or underlying collateral mortgage (not to exceed 80%) residential loans (percent) | 80.00% | |||||
Gross loans receivable | $ 70,577 | 69,530 | ||||
Allowance for loan losses | (1,195) | (1,271) | (1,200) | (1,355) | (1,155) | (1,100) |
Commercial Business | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans receivable | 1,925,533 | 1,809,075 | ||||
Allowance for loan losses | (21,403) | (20,624) | (20,186) | (21,111) | (21,189) | (22,853) |
Commercial Business | Commercial and Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans receivable | 618,390 | 570,453 | ||||
Allowance for loan losses | (10,374) | (9,891) | (10,553) | (11,272) | (11,304) | (13,478) |
Commercial Business | Owner-occupied Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans receivable | 603,372 | 594,986 | ||||
Allowance for loan losses | (4,291) | (4,587) | (4,095) | (4,063) | (4,200) | (4,049) |
Commercial Business | Non-owner Occupied Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans receivable | 703,771 | 643,636 | ||||
Allowance for loan losses | (6,738) | (6,146) | (5,538) | (5,776) | (5,685) | (5,326) |
Real Estate Construction and Land Development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans receivable | 123,073 | 114,115 | ||||
Allowance for loan losses | (2,583) | (2,524) | (2,758) | (2,472) | (3,163) | (2,673) |
Real Estate Construction and Land Development | One-to-four Family Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans receivable | 49,745 | 49,195 | ||||
Allowance for loan losses | (1,541) | (1,462) | (1,786) | (1,768) | (1,533) | (1,720) |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans receivable | 73,328 | 64,920 | ||||
Allowance for loan losses | (1,042) | (1,062) | (972) | (704) | (1,630) | (953) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans receivable | 284,541 | 259,294 | ||||
Allowance for loan losses | $ (3,215) | $ (3,167) | $ (2,769) | $ (2,790) | $ (2,175) | $ (1,597) |
Minimum | One-to-four Family Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan term | 15 years | |||||
Maximum | One-to-four Family Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan term | 30 years |
Loans Receivable - Concentratio
Loans Receivable - Concentrations of Credit (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014Loan | |
Receivables [Abstract] | ||
Concentration of loans greater than 10% | 0 | 0 |
Percentage of concentrations of loans in any industry (in excess of 10%) (percent) | 10.00% | 10.00% |
Loans Receivable - Credit Quali
Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | $ 2,264,600 | $ 2,063,071 |
OAEM | 40,921 | 64,921 |
Substandard | 96,494 | 121,111 |
Doubtful | 1,709 | 2,911 |
Total | 2,403,724 | 2,252,014 |
Potential problem loans receivable | 113,300 | 162,900 |
Government guaranteed potential problem loans | 920 | 2,000 |
One-to-four Family Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 68,441 | 66,599 |
OAEM | 0 | 740 |
Substandard | 2,136 | 2,191 |
Doubtful | 0 | 0 |
Total | 70,577 | 69,530 |
Commercial Business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 1,810,241 | 1,651,289 |
OAEM | 39,556 | 60,204 |
Substandard | 74,027 | 94,671 |
Doubtful | 1,709 | 2,911 |
Total | 1,925,533 | 1,809,075 |
Commercial Business | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 584,337 | 520,780 |
OAEM | 9,906 | 14,618 |
Substandard | 23,839 | 32,491 |
Doubtful | 308 | 2,564 |
Total | 618,390 | 570,453 |
Commercial Business | Owner-occupied Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 571,283 | 536,591 |
OAEM | 11,955 | 27,903 |
Substandard | 19,878 | 30,145 |
Doubtful | 256 | 347 |
Total | 603,372 | 594,986 |
Commercial Business | Non-owner Occupied Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 654,621 | 593,918 |
OAEM | 17,695 | 17,683 |
Substandard | 30,310 | 32,035 |
Doubtful | 1,145 | 0 |
Total | 703,771 | 643,636 |
Real Estate Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 108,989 | 95,317 |
OAEM | 1,361 | 3,977 |
Substandard | 12,723 | 14,821 |
Doubtful | 0 | 0 |
Total | 123,073 | 114,115 |
Real Estate Construction and Land Development | One-to-four Family Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 40,356 | 36,534 |
OAEM | 1,361 | 3,977 |
Substandard | 8,028 | 8,684 |
Doubtful | 0 | 0 |
Total | 49,745 | 49,195 |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 68,633 | 58,783 |
OAEM | 0 | 0 |
Substandard | 4,695 | 6,137 |
Doubtful | 0 | 0 |
Total | 73,328 | 64,920 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Pass | 276,929 | 249,866 |
OAEM | 4 | 0 |
Substandard | 7,608 | 9,428 |
Doubtful | 0 | 0 |
Total | $ 284,541 | $ 259,294 |
Loans Receivable - Nonaccrual L
Loans Receivable - Nonaccrual Loans (Details) - Nonaccrual - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | $ 9,907 | $ 11,572 |
Nonaccrual originated loans guaranteed by governmental agencies | 1,400 | 1,600 |
One-to-four Family Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | 40 | 0 |
Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | 7,193 | 8,596 |
Commercial Business | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | 4,387 | 5,784 |
Commercial Business | Owner-occupied Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | 2,806 | 2,295 |
Commercial Business | Non-owner Occupied Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | 0 | 517 |
Real Estate Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | 2,612 | 2,831 |
Real Estate Construction and Land Development | One-to-four Family Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | 2,612 | 2,831 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross nonaccrual loans | $ 62 | $ 145 |
Loans Receivable - Past Due Loa
Loans Receivable - Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 15,043 | $ 21,611 |
Current | 2,388,681 | 2,230,403 |
Total | 2,403,724 | 2,252,014 |
90 Days or More and Still Accruing | 0 | 0 |
30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,276 | 11,502 |
90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,767 | 10,109 |
One-to-four Family Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 312 |
Current | 70,577 | 69,218 |
Total | 70,577 | 69,530 |
90 Days or More and Still Accruing | 0 | 0 |
One-to-four Family Residential | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 312 |
One-to-four Family Residential | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,475 | 14,710 |
Current | 1,916,058 | 1,794,365 |
Total | 1,925,533 | 1,809,075 |
90 Days or More and Still Accruing | 0 | 0 |
Commercial Business | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,259 | 8,274 |
Commercial Business | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,216 | 6,436 |
Commercial Business | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,578 | 7,890 |
Current | 614,812 | 562,563 |
Total | 618,390 | 570,453 |
90 Days or More and Still Accruing | 0 | 0 |
Commercial Business | Commercial and Industrial | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,789 | 4,765 |
Commercial Business | Commercial and Industrial | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,789 | 3,125 |
Commercial Business | Owner-occupied Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,050 | 4,463 |
Current | 599,322 | 590,523 |
Total | 603,372 | 594,986 |
90 Days or More and Still Accruing | 0 | 0 |
Commercial Business | Owner-occupied Commercial Real Estate | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,806 | 1,683 |
Commercial Business | Owner-occupied Commercial Real Estate | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,244 | 2,780 |
Commercial Business | Non-owner Occupied Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,847 | 2,357 |
Current | 701,924 | 641,279 |
Total | 703,771 | 643,636 |
90 Days or More and Still Accruing | 0 | 0 |
Commercial Business | Non-owner Occupied Commercial Real Estate | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,664 | 1,826 |
Commercial Business | Non-owner Occupied Commercial Real Estate | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 183 | 531 |
Real Estate Construction and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,443 | 3,061 |
Current | 119,630 | 111,054 |
Total | 123,073 | 114,115 |
90 Days or More and Still Accruing | 0 | 0 |
Real Estate Construction and Land Development | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,051 | 240 |
Real Estate Construction and Land Development | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,392 | 2,821 |
Real Estate Construction and Land Development | One-to-four Family Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,986 | 2,465 |
Current | 46,759 | 46,730 |
Total | 49,745 | 49,195 |
90 Days or More and Still Accruing | 0 | 0 |
Real Estate Construction and Land Development | One-to-four Family Residential | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 636 | 240 |
Real Estate Construction and Land Development | One-to-four Family Residential | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,350 | 2,225 |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 457 | 596 |
Current | 72,871 | 64,324 |
Total | 73,328 | 64,920 |
90 Days or More and Still Accruing | 0 | 0 |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 415 | 0 |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 42 | 596 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,125 | 3,528 |
Current | 282,416 | 255,766 |
Total | 284,541 | 259,294 |
90 Days or More and Still Accruing | 0 | 0 |
Consumer | 30-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,966 | 2,676 |
Consumer | 90 Days or Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 159 | $ 852 |
Loans Receivable - Impaired Loa
Loans Receivable - Impaired Loans (Details) - Impaired Loans - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||||
Excluded TDR loans classified as PCI | $ 11,700,000 | $ 11,700,000 | $ 10,400,000 | ||
Recorded Investment With No Specific Valuation Allowance | 7,437,000 | 7,437,000 | 8,533,000 | ||
Recorded Investment With Specific Valuation Allowance | 23,254,000 | 23,254,000 | 21,698,000 | ||
Total Recorded Investment | 30,691,000 | 30,691,000 | 30,231,000 | ||
Unpaid Contractual Principal Balance | 33,524,000 | 33,524,000 | 32,364,000 | ||
Related Specific Valuation Allowance | 3,280,000 | 3,280,000 | 3,658,000 | ||
Government guarantee of originated impaired loans | 1,800,000 | 1,800,000 | 2,400,000 | ||
Average recorded investment on impaired loans | 29,884,000 | $ 36,955,000 | 30,808,000 | $ 36,015,000 | |
Nonaccrual | |||||
Financing Receivable, Impaired [Line Items] | |||||
Interest income recognized on impaired loans | 0 | 0 | 0 | ||
Restructured Performing | |||||
Financing Receivable, Impaired [Line Items] | |||||
Interest income recognized on impaired loans | 278,000 | 188,000 | 905,000 | 721,000 | |
One-to-four Family Residential | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 0 | 0 | 0 | ||
Recorded Investment With Specific Valuation Allowance | 277,000 | 277,000 | 245,000 | ||
Total Recorded Investment | 277,000 | 277,000 | 245,000 | ||
Unpaid Contractual Principal Balance | 278,000 | 278,000 | 245,000 | ||
Related Specific Valuation Allowance | 86,000 | 86,000 | 75,000 | ||
Average recorded investment on impaired loans | 259,000 | 573,000 | 315,000 | 692,000 | |
Commercial Business | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 4,888,000 | 4,888,000 | 6,193,000 | ||
Recorded Investment With Specific Valuation Allowance | 19,679,000 | 19,679,000 | 16,823,000 | ||
Total Recorded Investment | 24,567,000 | 24,567,000 | 23,016,000 | ||
Unpaid Contractual Principal Balance | 26,767,000 | 26,767,000 | 24,701,000 | ||
Related Specific Valuation Allowance | 2,927,000 | 2,927,000 | 2,844,000 | ||
Average recorded investment on impaired loans | 23,830,000 | 27,632,000 | 23,820,000 | 26,575,000 | |
Commercial Business | Commercial and Industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 1,168,000 | 1,168,000 | 3,374,000 | ||
Recorded Investment With Specific Valuation Allowance | 7,675,000 | 7,675,000 | 8,000,000 | ||
Total Recorded Investment | 8,843,000 | 8,843,000 | 11,374,000 | ||
Unpaid Contractual Principal Balance | 10,953,000 | 10,953,000 | 13,045,000 | ||
Related Specific Valuation Allowance | 943,000 | 943,000 | 1,334,000 | ||
Average recorded investment on impaired loans | 8,692,000 | 15,296,000 | 10,776,000 | 15,115,000 | |
Commercial Business | Owner-occupied Commercial Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 0 | 0 | 360,000 | ||
Recorded Investment With Specific Valuation Allowance | 5,150,000 | 5,150,000 | 3,553,000 | ||
Total Recorded Investment | 5,150,000 | 5,150,000 | 3,913,000 | ||
Unpaid Contractual Principal Balance | 5,233,000 | 5,233,000 | 3,937,000 | ||
Related Specific Valuation Allowance | 1,016,000 | 1,016,000 | 979,000 | ||
Average recorded investment on impaired loans | 4,882,000 | 3,811,000 | 4,151,000 | 3,500,000 | |
Commercial Business | Non-owner Occupied Commercial Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 3,720,000 | 3,720,000 | 2,459,000 | ||
Recorded Investment With Specific Valuation Allowance | 6,854,000 | 6,854,000 | 5,270,000 | ||
Total Recorded Investment | 10,574,000 | 10,574,000 | 7,729,000 | ||
Unpaid Contractual Principal Balance | 10,581,000 | 10,581,000 | 7,719,000 | ||
Related Specific Valuation Allowance | 968,000 | 968,000 | 531,000 | ||
Average recorded investment on impaired loans | 10,256,000 | 8,525,000 | 8,893,000 | 7,960,000 | |
Real Estate Construction and Land Development | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 2,549,000 | 2,549,000 | 2,307,000 | ||
Recorded Investment With Specific Valuation Allowance | 3,134,000 | 3,134,000 | 4,452,000 | ||
Total Recorded Investment | 5,683,000 | 5,683,000 | 6,759,000 | ||
Unpaid Contractual Principal Balance | 6,311,000 | 6,311,000 | 7,202,000 | ||
Related Specific Valuation Allowance | 235,000 | 235,000 | 681,000 | ||
Average recorded investment on impaired loans | 5,636,000 | 7,780,000 | 6,344,000 | 7,818,000 | |
Real Estate Construction and Land Development | One-to-four Family Residential | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 2,549,000 | 2,549,000 | 2,307,000 | ||
Recorded Investment With Specific Valuation Allowance | 1,150,000 | 1,150,000 | 2,396,000 | ||
Total Recorded Investment | 3,699,000 | 3,699,000 | 4,703,000 | ||
Unpaid Contractual Principal Balance | 4,327,000 | 4,327,000 | 5,146,000 | ||
Related Specific Valuation Allowance | 39,000 | 39,000 | 447,000 | ||
Average recorded investment on impaired loans | 3,639,000 | 5,689,000 | 4,312,000 | 5,640,000 | |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 0 | 0 | 0 | ||
Recorded Investment With Specific Valuation Allowance | 1,984,000 | 1,984,000 | 2,056,000 | ||
Total Recorded Investment | 1,984,000 | 1,984,000 | 2,056,000 | ||
Unpaid Contractual Principal Balance | 1,984,000 | 1,984,000 | 2,056,000 | ||
Related Specific Valuation Allowance | 196,000 | 196,000 | 234,000 | ||
Average recorded investment on impaired loans | 1,997,000 | 2,091,000 | 2,032,000 | 2,178,000 | |
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment With No Specific Valuation Allowance | 0 | 0 | 33,000 | ||
Recorded Investment With Specific Valuation Allowance | 164,000 | 164,000 | 178,000 | ||
Total Recorded Investment | 164,000 | 164,000 | 211,000 | ||
Unpaid Contractual Principal Balance | 168,000 | 168,000 | 216,000 | ||
Related Specific Valuation Allowance | 32,000 | 32,000 | $ 58,000 | ||
Average recorded investment on impaired loans | $ 159,000 | $ 970,000 | $ 329,000 | $ 930,000 |
Loans Receivable - TDR Loans, R
Loans Receivable - TDR Loans, Recorded Investment and Allowance (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Performing TDRs, TDR loans | $ 32,460 | $ 29,053 |
Nonaccrual TDRs, TDR loans | 6,639 | 7,256 |
Performing TDRs, Allowance for loan losses on TDR loans | 2,033 | 1,908 |
Nonaccrual TDRs, Allowance for loan losses on TDR loans | 655 | 1,035 |
Unfunded commitments related to credits classified as TDRs | $ 585 | $ 1,800 |
Loans Receivable - Modified TDR
Loans Receivable - Modified TDRs (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)contractloan | Sep. 30, 2014USD ($)contract | Sep. 30, 2015USD ($)contract | Sep. 30, 2014USD ($)contract | |
Commercial Business | Commercial and Industrial | ||||
Loans Modified, Subsequently Defaulted [Abstract] | ||||
Number of Contracts | contract | 1 | |||
Outstanding Principal Balance | $ 1,800,000 | |||
Troubled Debt Restructured Loans | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 15 | 22 | 51 | 33 |
Outstanding Principal Balance | $ 6,869,000 | $ 4,579,000 | $ 27,518,000 | $ 10,963,000 |
Loans Modified, Subsequently Defaulted [Abstract] | ||||
Number of Contracts | contract | 1 | 5 | 2 | 5 |
Outstanding Principal Balance | $ 98,000 | $ 852,000 | $ 1,858,000 | $ 852,000 |
Number of contracts with no modifications | loan | 6 | |||
Total outstanding principal balance with no prior modifications | $ 2,300,000 | |||
Troubled Debt Restructured Loans | One-to-four Family Residential | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 0 | 0 | ||
Outstanding Principal Balance | $ 0 | $ 0 | ||
Troubled Debt Restructured Loans | Commercial Business | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 13 | 17 | 42 | 24 |
Outstanding Principal Balance | $ 5,782,000 | $ 3,288,000 | $ 24,278,000 | $ 9,273,000 |
Loans Modified, Subsequently Defaulted [Abstract] | ||||
Number of Contracts | contract | 1 | 5 | 2 | 5 |
Outstanding Principal Balance | $ 98,000 | $ 852,000 | $ 1,858,000 | $ 852,000 |
Troubled Debt Restructured Loans | Commercial Business | Commercial and Industrial | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 10 | 16 | 29 | 20 |
Outstanding Principal Balance | $ 3,598,000 | $ 3,108,000 | $ 6,443,000 | $ 7,730,000 |
Loans Modified, Subsequently Defaulted [Abstract] | ||||
Number of Contracts | contract | 1 | 3 | 2 | 3 |
Outstanding Principal Balance | $ 98,000 | $ 775,000 | $ 1,858,000 | $ 775,000 |
Troubled Debt Restructured Loans | Commercial Business | Non-owner Occupied Commercial Real Estate | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 1 | 0 | 6 | 2 |
Outstanding Principal Balance | $ 1,082,000 | $ 0 | $ 15,634,000 | $ 1,020,000 |
Loans Modified, Subsequently Defaulted [Abstract] | ||||
Number of Contracts | contract | 0 | 2 | 0 | 2 |
Outstanding Principal Balance | $ 0 | $ 77,000 | $ 0 | $ 77,000 |
Troubled Debt Restructured Loans | Commercial Business | Owner-occupied Commercial Real Estate | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 2 | 1 | 7 | 2 |
Outstanding Principal Balance | $ 1,102,000 | $ 180,000 | $ 2,201,000 | $ 523,000 |
Troubled Debt Restructured Loans | Real Estate Construction and Land Development | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 2 | 4 | 7 | 5 |
Outstanding Principal Balance | $ 1,087,000 | $ 1,223,000 | $ 3,096,000 | $ 1,406,000 |
Troubled Debt Restructured Loans | Real Estate Construction and Land Development | One-to-four Family Residential | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 2 | 4 | 6 | 5 |
Outstanding Principal Balance | $ 1,087,000 | $ 1,223,000 | $ 2,681,000 | $ 1,406,000 |
Loans Modified, Subsequently Defaulted [Abstract] | ||||
Advances on loan disbursement | $ 0 | $ 0 | $ 0 | 45,000 |
Initial advance at the time of modification | $ 190,000 | |||
Troubled Debt Restructured Loans | Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 1 | 0 | ||
Outstanding Principal Balance | $ 415,000 | $ 0 | ||
Troubled Debt Restructured Loans | Consumer | ||||
Loans Modified as Troubled Debt Restructurings [Abstract] | ||||
Number of Contracts | contract | 0 | 1 | 2 | 4 |
Outstanding Principal Balance | $ 0 | $ 68,000 | $ 144,000 | $ 284,000 |
Troubled Debt Restructured Loans | Finance Receivable Modified Subsequent Default | ||||
Loans Modified, Subsequently Defaulted [Abstract] | ||||
Related specific valuation allowance for TDRs | 177,000 | 177,000 | ||
Troubled Debt Restructured Loans | Modified During the Quarter | ||||
Loans Modified, Subsequently Defaulted [Abstract] | ||||
Loans modified as TDRs, specific valuation allowance | $ 416,000 | $ 1,600,000 |
Loans Receivable - Purchased Cr
Loans Receivable - Purchased Credit Impaired Loans (Details) - PCI Loans - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | $ 92,158 | |
One-to-four Family Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 5,149 | |
Commercial Business | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 71,410 | |
Commercial Business | Commercial and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 15,721 | |
Commercial Business | Owner-occupied Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 24,729 | |
Commercial Business | Non-owner Occupied Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 30,960 | |
Real Estate Construction and Land Development | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 7,610 | |
Real Estate Construction and Land Development | One-to-four Family Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 4,379 | |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 3,231 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 7,989 | |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 92,158 | $ 119,271 |
Receivables Acquired with Deteriorated Credit Quality | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 103,522 | 134,760 |
Receivables Acquired with Deteriorated Credit Quality | One-to-four Family Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 5,149 | 5,713 |
Receivables Acquired with Deteriorated Credit Quality | One-to-four Family Residential | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 5,456 | 6,106 |
Receivables Acquired with Deteriorated Credit Quality | Commercial Business | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 71,410 | 93,490 |
Receivables Acquired with Deteriorated Credit Quality | Commercial Business | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 80,792 | 106,306 |
Receivables Acquired with Deteriorated Credit Quality | Commercial Business | Commercial and Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 15,721 | 25,174 |
Receivables Acquired with Deteriorated Credit Quality | Commercial Business | Commercial and Industrial | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 21,168 | 31,779 |
Receivables Acquired with Deteriorated Credit Quality | Commercial Business | Owner-occupied Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 24,729 | 36,874 |
Receivables Acquired with Deteriorated Credit Quality | Commercial Business | Owner-occupied Commercial Real Estate | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 27,397 | 41,236 |
Receivables Acquired with Deteriorated Credit Quality | Commercial Business | Non-owner Occupied Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 30,960 | 31,442 |
Receivables Acquired with Deteriorated Credit Quality | Commercial Business | Non-owner Occupied Commercial Real Estate | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 32,227 | 33,291 |
Receivables Acquired with Deteriorated Credit Quality | Real Estate Construction and Land Development | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 7,610 | 10,296 |
Receivables Acquired with Deteriorated Credit Quality | Real Estate Construction and Land Development | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 10,360 | 13,420 |
Receivables Acquired with Deteriorated Credit Quality | Real Estate Construction and Land Development | One-to-four Family Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 4,379 | 5,531 |
Receivables Acquired with Deteriorated Credit Quality | Real Estate Construction and Land Development | One-to-four Family Residential | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 7,256 | 8,559 |
Receivables Acquired with Deteriorated Credit Quality | Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 3,231 | 4,765 |
Receivables Acquired with Deteriorated Credit Quality | Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 3,104 | 4,861 |
Receivables Acquired with Deteriorated Credit Quality | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | 7,989 | 9,772 |
Receivables Acquired with Deteriorated Credit Quality | Consumer | Outstanding Principal | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment of PCI loans | $ 6,914 | $ 8,928 |
Loans Receivable - Change in Ac
Loans Receivable - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at the beginning of the period | $ 18,731 | $ 27,320 | $ 21,092 | $ 17,249 |
Accretion | (1,661) | (2,254) | (5,399) | (5,989) |
Disposals and other | 22 | (2,756) | (2,382) | (4,527) |
Change in accretable yield | 1,586 | 723 | 5,367 | 16,300 |
Balance at the end of the period | $ 18,678 | $ 23,033 | $ 18,678 | $ 23,033 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Changes in Loan Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of changes in allowance for loan losses | ||||
Balance at the beginning of period | $ 28,278 | $ 28,483 | $ 27,729 | $ 28,824 |
Charge-offs | (348) | (824) | (2,894) | (2,893) |
Recoveries of loans previously charged -off | 223 | 89 | 922 | 668 |
Provision for loan losses | 851 | 594 | 3,247 | 1,743 |
Balance at the end of period | $ 29,004 | $ 28,342 | $ 29,004 | $ 28,342 |
Allowance for Loan Losses - Act
Allowance for Loan Losses - Activity in Allowance for Losses Disaggregated on Basis of Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | $ 3,280 | $ 3,280 | $ 3,658 | ||
Collectively evaluated for impairment | 16,654 | 16,654 | 15,016 | ||
PCI loans | 9,070 | 9,070 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 28,278 | $ 28,483 | 27,729 | $ 28,824 | |
Charge-offs | (348) | (824) | (2,894) | (2,893) | |
Recoveries | 223 | 89 | 922 | 668 | |
Provision for loan losses | 851 | 594 | 3,247 | 1,743 | |
Balance at the end of period | 29,004 | 28,342 | 29,004 | 28,342 | |
PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 9,055 | ||||
One-to-four Family Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 86 | 86 | 75 | ||
Collectively evaluated for impairment | 584 | 584 | 538 | ||
PCI loans | 525 | 525 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 1,271 | 1,155 | 1,200 | 1,100 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 12 | 0 | 13 | 0 | |
Provision for loan losses | (88) | 200 | (18) | 255 | |
Balance at the end of period | 1,195 | 1,355 | 1,195 | 1,355 | |
One-to-four Family Residential | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 587 | ||||
Commercial Business | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 2,927 | 2,927 | 2,844 | ||
Collectively evaluated for impairment | 11,922 | 11,922 | 10,747 | ||
PCI loans | 6,554 | 6,554 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 20,624 | 21,189 | 20,186 | 22,853 | |
Charge-offs | (70) | (509) | (1,580) | (1,991) | |
Recoveries | 59 | 43 | 447 | 544 | |
Provision for loan losses | 790 | 388 | 2,350 | (295) | |
Balance at the end of period | 21,403 | 21,111 | 21,403 | 21,111 | |
Commercial Business | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 6,595 | ||||
Commercial Business | Commercial and Industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 943 | 943 | 1,334 | ||
Collectively evaluated for impairment | 6,711 | 6,711 | 6,557 | ||
PCI loans | 2,720 | 2,720 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 9,891 | 11,304 | 10,553 | 13,478 | |
Charge-offs | (70) | (309) | (1,392) | (1,791) | |
Recoveries | 59 | 43 | 447 | 544 | |
Provision for loan losses | 494 | 234 | 766 | (959) | |
Balance at the end of period | 10,374 | 11,272 | 10,374 | 11,272 | |
Commercial Business | Commercial and Industrial | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 2,662 | ||||
Commercial Business | Owner-occupied Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 1,016 | 1,016 | 979 | ||
Collectively evaluated for impairment | 1,780 | 1,780 | 1,643 | ||
PCI loans | 1,495 | 1,495 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 4,587 | 4,200 | 4,095 | 4,049 | |
Charge-offs | 0 | (128) | 0 | (128) | |
Recoveries | 0 | 0 | |||
Provision for loan losses | (296) | (9) | 196 | 142 | |
Balance at the end of period | 4,291 | 4,063 | 4,291 | 4,063 | |
Commercial Business | Owner-occupied Commercial Real Estate | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 1,473 | ||||
Commercial Business | Non-owner Occupied Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 968 | 968 | 531 | ||
Collectively evaluated for impairment | 3,431 | 3,431 | 2,547 | ||
PCI loans | 2,339 | 2,339 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 6,146 | 5,685 | 5,538 | 5,326 | |
Charge-offs | 0 | (72) | (188) | (72) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | 592 | 163 | 1,388 | 522 | |
Balance at the end of period | 6,738 | 5,776 | 6,738 | 5,776 | |
Commercial Business | Non-owner Occupied Commercial Real Estate | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 2,460 | ||||
Real Estate Construction and Land Development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 235 | 235 | 681 | ||
Collectively evaluated for impairment | 1,247 | 1,247 | 972 | ||
PCI loans | 1,101 | 1,101 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 2,524 | 3,163 | 2,758 | 2,673 | |
Charge-offs | 0 | 0 | (106) | (345) | |
Recoveries | 0 | 0 | 100 | 43 | |
Provision for loan losses | 59 | (691) | (169) | 101 | |
Balance at the end of period | 2,583 | 2,472 | 2,583 | 2,472 | |
Real Estate Construction and Land Development | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 1,105 | ||||
Real Estate Construction and Land Development | One-to-four Family Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 39 | 39 | 447 | ||
Collectively evaluated for impairment | 492 | 492 | 322 | ||
PCI loans | 1,010 | 1,010 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 1,462 | 1,533 | 1,786 | 1,720 | |
Charge-offs | 0 | 0 | (106) | (345) | |
Recoveries | 0 | 0 | 100 | 43 | |
Provision for loan losses | 79 | 235 | (239) | 350 | |
Balance at the end of period | 1,541 | 1,768 | 1,541 | 1,768 | |
Real Estate Construction and Land Development | One-to-four Family Residential | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 1,017 | ||||
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 196 | 196 | 234 | ||
Collectively evaluated for impairment | 755 | 755 | 650 | ||
PCI loans | 91 | 91 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 1,062 | 1,630 | 972 | 953 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | (20) | (926) | 70 | (249) | |
Balance at the end of period | 1,042 | 704 | 1,042 | 704 | |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 88 | ||||
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 32 | 32 | 58 | ||
Collectively evaluated for impairment | 2,293 | 2,293 | 1,943 | ||
PCI loans | 890 | 890 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 3,167 | 2,175 | 2,769 | 1,597 | |
Charge-offs | (278) | (315) | (1,208) | (557) | |
Recoveries | 152 | 46 | 362 | 81 | |
Provision for loan losses | 174 | 884 | 1,292 | 1,669 | |
Balance at the end of period | 3,215 | 2,790 | 3,215 | 2,790 | |
Consumer | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | 768 | ||||
Unallocated | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 608 | 608 | 816 | ||
PCI loans | 0 | 0 | |||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Balance at the beginning of period | 692 | 801 | 816 | 601 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision for loan losses | (84) | (187) | (208) | 13 | |
Balance at the end of period | $ 608 | $ 614 | $ 608 | $ 614 | |
Unallocated | PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
PCI loans | $ 0 |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment Disaggregated on Basis of Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | $ 30,691 | $ 30,231 |
Loans collectively evaluated for impairment | 2,280,875 | 2,102,512 |
Total Gross Loans Receivable | 2,403,724 | 2,252,014 |
One-to-four Family Residential | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 277 | 245 |
Loans collectively evaluated for impairment | 65,151 | 63,572 |
Total Gross Loans Receivable | 70,577 | 69,530 |
PCI Loans | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 92,158 | |
PCI Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 92,158 | 119,271 |
PCI Loans | One-to-four Family Residential | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 5,149 | |
PCI Loans | One-to-four Family Residential | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 5,149 | 5,713 |
Commercial Business | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 24,567 | 23,016 |
Loans collectively evaluated for impairment | 1,829,556 | 1,692,569 |
Total Gross Loans Receivable | 1,925,533 | 1,809,075 |
Commercial Business | Commercial and Industrial | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 8,843 | 11,374 |
Loans collectively evaluated for impairment | 593,826 | 533,905 |
Total Gross Loans Receivable | 618,390 | 570,453 |
Commercial Business | Owner-occupied Commercial Real Estate | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 5,150 | 3,913 |
Loans collectively evaluated for impairment | 573,493 | 554,199 |
Total Gross Loans Receivable | 603,372 | 594,986 |
Commercial Business | Non-owner Occupied Commercial Real Estate | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 10,574 | 7,729 |
Loans collectively evaluated for impairment | 662,237 | 604,465 |
Total Gross Loans Receivable | 703,771 | 643,636 |
Commercial Business | PCI Loans | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 71,410 | |
Commercial Business | PCI Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 71,410 | 93,490 |
Commercial Business | PCI Loans | Commercial and Industrial | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 15,721 | |
Commercial Business | PCI Loans | Commercial and Industrial | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 15,721 | 25,174 |
Commercial Business | PCI Loans | Owner-occupied Commercial Real Estate | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 24,729 | |
Commercial Business | PCI Loans | Owner-occupied Commercial Real Estate | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 24,729 | 36,874 |
Commercial Business | PCI Loans | Non-owner Occupied Commercial Real Estate | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 30,960 | |
Commercial Business | PCI Loans | Non-owner Occupied Commercial Real Estate | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 30,960 | 31,442 |
Real Estate Construction and Land Development | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 5,683 | 6,759 |
Loans collectively evaluated for impairment | 109,780 | 97,060 |
Total Gross Loans Receivable | 123,073 | 114,115 |
Real Estate Construction and Land Development | One-to-four Family Residential | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 3,699 | 4,703 |
Loans collectively evaluated for impairment | 41,667 | 38,961 |
Total Gross Loans Receivable | 49,745 | 49,195 |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 1,984 | 2,056 |
Loans collectively evaluated for impairment | 68,113 | 58,099 |
Total Gross Loans Receivable | 73,328 | 64,920 |
Real Estate Construction and Land Development | PCI Loans | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 7,610 | |
Real Estate Construction and Land Development | PCI Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 7,610 | 10,296 |
Real Estate Construction and Land Development | PCI Loans | One-to-four Family Residential | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 4,379 | |
Real Estate Construction and Land Development | PCI Loans | One-to-four Family Residential | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 4,379 | 5,531 |
Real Estate Construction and Land Development | PCI Loans | Five or More Family Residential and Commercial Properties | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 3,231 | |
Real Estate Construction and Land Development | PCI Loans | Five or More Family Residential and Commercial Properties | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 3,231 | 4,765 |
Consumer | ||
Schedule of loan receivables on the basis of impairment method | ||
Loans individually evaluated for impairment | 164 | 211 |
Loans collectively evaluated for impairment | 276,388 | 249,311 |
Total Gross Loans Receivable | 284,541 | 259,294 |
Consumer | PCI Loans | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | 7,989 | |
Consumer | PCI Loans | Receivables Acquired with Deteriorated Credit Quality | ||
Schedule of loan receivables on the basis of impairment method | ||
PCI loans | $ 7,989 | $ 9,772 |
FDIC Indemnification Asset (Det
FDIC Indemnification Asset (Details) $ in Thousands | Aug. 04, 2015USD ($)acquisition | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) |
FDIC Indemnification Asset [Roll Forward] | ||||||
Balance at the beginning of the period | $ 388 | $ 8,887 | $ 1,116 | $ 4,382 | ||
Additions as a result of the Washington Banking Merger | 0 | 0 | 0 | 7,174 | ||
Cash payments received or receivable from the FDIC | 0 | (3,102) | (231) | (5,843) | ||
FDIC share of additional estimated (gains) losses | 0 | (249) | (352) | 556 | ||
Net amortization | 0 | (398) | (145) | (1,131) | ||
Change due to termination of FDIC shared-loss agreements | (388) | 0 | (388) | 0 | ||
Balance at the end of the period | $ 0 | $ 5,138 | 0 | 5,138 | ||
Number of FDIC-assisted acquisitions | acquisition | 3 | |||||
Consideration paid to FDIC for the termination of shared-loss agreements | $ 7,100 | |||||
FDIC clawback liability | $ 9,300 | |||||
Gain on termination of FDIC shared-loss agreements | $ 1,700 | $ 1,747 | $ 0 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in other real estate owned | ||||
Balance at the beginning of the period | $ 3,017 | $ 8,106 | $ 3,355 | $ 4,559 |
Additions | 611 | 459 | 2,424 | 677 |
Additions from acquisitions | 0 | 0 | 0 | 7,121 |
Proceeds from dispositions | (1,560) | (1,315) | (3,199) | (5,173) |
Gain (loss) on sales, net | 3 | (378) | (94) | (312) |
Valuation adjustment | 0 | 0 | (415) | 0 |
Balance at the end of the period | $ 2,071 | $ 6,872 | $ 2,071 | $ 6,872 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill additions | $ 0 | $ 89,500,000 | $ 0 | $ 89,700,000 |
Goodwill impairment charges | $ 0 | $ 0 | $ 0 | $ 0 |
Core Deposits | Washington Banking | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 10 years | |||
Core Deposits | Valley | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 10 years | |||
Core Deposits | NCB | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 5 years | |||
Core Deposits | Pierce | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 4 years | |||
Core Deposits | Cowlitz | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 9 years | |||
Core Deposits | Western Washington Bancorp | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life | 8 years |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance at the beginning of the period | $ 9,835 | $ 12,164 | $ 10,889 | $ 1,615 |
Additions as a result of acquisitions | 0 | 0 | 0 | 11,194 |
Less: Amortization | 523 | 603 | 1,577 | 1,248 |
Balance at the end of the period | $ 9,312 | $ 11,561 | $ 9,312 | $ 11,561 |
Junior Subordinated Debentures
Junior Subordinated Debentures (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2007 | Dec. 31, 2014 | May. 01, 2014 | |
Debt Instrument [Line Items] | |||||||
Issued amount | $ 25,000,000 | ||||||
Debt term | 30 years | ||||||
Adjustable rate of trust preferred securities | 1.89% | 1.89% | |||||
Junior subordinated debentures | $ 19,351,000 | $ 19,351,000 | $ 19,082,000 | ||||
Junior Subordinated Debentures | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average rate | 4.01% | 3.57% | 4.36% | 3.58% | |||
LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.56% | ||||||
Washington Banking | |||||||
Debt Instrument [Line Items] | |||||||
Assumed trust preferred securities and junior subordinated debentures, fair value | $ 18,900,000 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Disclosure of Repurchase Agreements [Abstract] | ||
Repurchase agreements, maturity period | 1 day | |
Repurchase agreement obligations | $ 22,829 | $ 32,181 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Weighted Average Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income: | ||||
Net income | $ 9,492 | $ 7,068 | $ 27,996 | $ 13,759 |
Less: Dividends and undistributed earnings allocated to participating securities | (84) | (59) | (247) | (114) |
Net income allocated to common shareholders | $ 9,408 | $ 7,009 | $ 27,749 | $ 13,645 |
Basic: | ||||
Weighted average common shares outstanding (in shares) | 29,960,133 | 30,293,559 | 30,086,057 | 24,085,132 |
Less: Restricted stock awards (in shares) | (263,404) | (230,134) | (268,999) | (198,255) |
Total basic weighted average common shares outstanding (in shares) | 29,696,729 | 30,063,425 | 29,817,058 | 23,886,877 |
Diluted: | ||||
Basic weighted average common shares outstanding (in shares) | 29,696,729 | 30,063,425 | 29,817,058 | 23,886,877 |
Incremental shares from stock options (in shares) | 22,395 | 36,671 | 22,718 | 50,539 |
Total diluted weighted average common shares outstanding (in shares) | 29,719,124 | 30,100,096 | 29,839,776 | 23,937,416 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | Jul. 22, 2015 | Apr. 22, 2015 | Jan. 28, 2015 | Nov. 11, 2014 | Oct. 23, 2014 | Jul. 24, 2014 | Mar. 27, 2014 | Jan. 29, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Stockholders' Equity Note [Abstract] | ||||||||||||
Declared | Jul. 22, 2015 | Apr. 22, 2015 | Jan. 28, 2015 | Nov. 11, 2014 | Oct. 23, 2014 | Jul. 24, 2014 | Mar. 27, 2014 | Jan. 29, 2014 | ||||
Cash Dividend per Share (in usd per share) | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.16 | $ 0.09 | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.11 | $ 0.09000 | $ 0.32 | $ 0.25 |
Record Date | Aug. 6, 2015 | May 7, 2015 | Feb. 10, 2015 | Dec. 2, 2014 | Nov. 6, 2014 | Aug. 7, 2014 | Apr. 8, 2014 | Feb. 10, 2014 | ||||
Paid Date | Aug. 20, 2015 | May 21, 2015 | Feb. 24, 2015 | Dec. 12, 2014 | Nov. 20, 2014 | Aug. 21, 2014 | Apr. 23, 2014 | Feb. 24, 2014 |
Stockholders' Equity - Shares R
Stockholders' Equity - Shares Repurchased (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 37 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Tenth Plan | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchased shares | 0 | 108,075 | 0 | 108,075 | 704,975 |
Stock repurchase average share price (in usd per share) | $ 0 | $ 16.88 | $ 0 | $ 16.88 | $ 15.85 |
Eleventh Plan | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchased shares | 0 | 0 | 441,966 | 0 | 441,966 |
Stock repurchase average share price (in usd per share) | $ 0 | $ 0 | $ 16.64 | $ 0 | $ 16.64 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - $ / shares | Oct. 23, 2014 | Aug. 30, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Stockholders Equity (Textual) [Abstract] | ||||||
Anti-dilutive securities excluded from computation (in shares) | 2,650 | 9,640 | 4,883 | 25,088 | ||
Shares repurchased at an average price | 388 | 2,751 | 21,998 | 18,549 | ||
Withholding taxes average price per share (in usd per share) | $ 17.63 | $ 16.11 | $ 17.07 | $ 16.99 | ||
Eleventh Plan | ||||||
Stockholders Equity (Textual) [Abstract] | ||||||
Outstanding share percent | 5.00% | |||||
Outstanding common shares in the plan | 1,513,000 | |||||
Tenth Plan | ||||||
Stockholders Equity (Textual) [Abstract] | ||||||
Outstanding share percent | 5.00% | |||||
Outstanding common shares in the plan | 757,000 | |||||
Number of shares repurchased | 704,975 | |||||
Number of remaining shares authorized to be repurchased | 52,025 | 52,025 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Increase Decrease In Stockholders Equity Roll Forward | ||||
Balance of AOCI at the beginning of period | $ 2,198 | $ 1,309 | $ 3,378 | $ (1,162) |
Other comprehensive (loss) income before reclassification | 3,064 | (1,371) | 2,335 | 1,274 |
Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income | (255) | 8 | (706) | (166) |
Other comprehensive income (loss) | 2,809 | (1,363) | 1,629 | 1,108 |
Balance of AOCI at the end of the period | 5,007 | (54) | 5,007 | (54) |
Changes in Fair Value of Available for Sale Securities | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Balance of AOCI at the beginning of period | 2,198 | 1,518 | 3,567 | (923) |
Other comprehensive (loss) income before reclassification | 3,064 | (1,384) | 2,324 | 1,231 |
Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income | (255) | 8 | (884) | (166) |
Other comprehensive income (loss) | 2,809 | (1,376) | 1,440 | 1,065 |
Balance of AOCI at the end of the period | 5,007 | 142 | 5,007 | 142 |
Accretion of Other-than-temporary Impairment on Held-to-maturity Securities | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Balance of AOCI at the beginning of period | 0 | (209) | (189) | (239) |
Other comprehensive (loss) income before reclassification | 0 | 13 | 11 | 43 |
Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income | 0 | 0 | 178 | 0 |
Other comprehensive income (loss) | 0 | 13 | 189 | 43 |
Balance of AOCI at the end of the period | $ 0 | $ (196) | $ 0 | $ (196) |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Shares | ||
Outstanding at beginning of period (in shares) | 156,407 | 194,482 |
Granted (in shares) | 0 | 90,248 |
Exercised (in shares) | (53,198) | (70,854) |
Forfeited or expired (in shares) | (12,278) | (43,984) |
Outstanding at end of period (in shares) | 90,931 | 169,892 |
Vested and expected to vest at end of period (in shares) | 90,931 | |
Exercisable at end of period (in shares) | 90,931 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (in usd per share) | $ 13.59 | $ 15.82 |
Granted (in usd per share) | 0 | 10.72 |
Exercised (in usd per share) | 12.45 | 10.79 |
Forfeited or expired (in usd per share) | 16.73 | 22.80 |
Outstanding at end of period (in usd per share) | 13.84 | $ 13.41 |
Vested and expected to vest at end of period (in usd per share) | 13.84 | |
Exercisable at end of period (in usd per share) | $ 13.84 | |
Weighted-Average Remaining Contractual Term, Outstanding | 3 years 18 days | 3 years 3 months 18 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | 3 years 18 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 3 years 18 days | |
Aggregate Intrinsic Value, Outstanding | $ 456 | $ 455 |
Aggregate Intrinsic Value, Vested and expected to vest | 456 | |
Aggregate Intrinsic Value, Exercisable | $ 456 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted and Unrestricted Stock Award Activity (Details) - Restricted and Unrestricted Stock - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Shares | ||
Nonvested at beginning of period (in shares) | 238,669 | 202,939 |
Granted (in shares) | 121,320 | 130,548 |
Vested (in shares) | (91,642) | (73,336) |
Forfeited (in shares) | (2,837) | (6,806) |
Nonvested at end of period (in shares) | 265,510 | 253,345 |
Weighted-Average Grant Date Fair Value | ||
Nonvested at beginning of period (in usd per share) | $ 15.20 | $ 14.29 |
Granted (in usd per share) | 16.72 | 16.03 |
Vested (in usd per share) | 15.12 | 14.26 |
Forfeited (in usd per share) | 15.71 | 14.66 |
Nonvested at end of period (in usd per share) | $ 15.92 | $ 15.19 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) | Jul. 24, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares remain available for future issuances under stock-based compensation plans | 1,262,567 | 1,262,567 | |||
Proceeds from exercise of stock options | $ 666,000 | $ 766,000 | |||
Restricted stock awards issued, net of forfeitures | 1,600,000 | 1,200,000 | |||
the Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for issuance | 1,500,000 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based compensation | 20,000 | ||||
Tax benefit | 0 | ||||
Intrinsic value of options exercised | 223,000 | 385,000 | |||
Proceeds from exercise of stock options | $ 666,000 | 766,000 | |||
Employee Stock Option | Option 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested ratably | 3 years | ||||
Expired ratably | 5 years | ||||
Employee Stock Option | Option 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested ratably | 4 years | ||||
Expired ratably | 10 years | ||||
Restricted Stock Awards | Award 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested ratably | 5 years | ||||
Restricted Stock Awards | Award 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested ratably | 4 years | ||||
Restricted and Unrestricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based compensation | $ 409,000 | $ 357,000 | $ 1,125,000 | 896,000 | |
Tax benefit | 144,000 | $ 125,000 | 395,000 | $ 315,000 | |
Unrecognized compensation expense related to non-vested stock option | $ 3,200,000 | $ 3,200,000 | |||
Weighted average period | 2 years 6 months |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurement on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | $ 703,093 | $ 742,846 |
Recurring | ||
Fair value measurements of assets on a recurring basis | ||
Total | 703,093 | 742,846 |
Recurring | U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 15,162 | 21,427 |
Recurring | Municipal securities | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 189,769 | 173,037 |
Recurring | U.S. Government-sponsored agencies | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 486,964 | 542,399 |
Recurring | Corporate obligations | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 9,216 | 4,010 |
Recurring | Mutual funds and other equities | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 1,982 | 1,973 |
Recurring | Level 1 | ||
Fair value measurements of assets on a recurring basis | ||
Total | 1,982 | 1,973 |
Recurring | Level 1 | U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Municipal securities | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 1 | U.S. Government-sponsored agencies | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Corporate obligations | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Mutual funds and other equities | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 1,982 | 1,973 |
Recurring | Level 2 | ||
Fair value measurements of assets on a recurring basis | ||
Total | 701,111 | 740,873 |
Recurring | Level 2 | U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 15,162 | 21,427 |
Recurring | Level 2 | Municipal securities | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 189,769 | 173,037 |
Recurring | Level 2 | U.S. Government-sponsored agencies | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 486,964 | 542,399 |
Recurring | Level 2 | Corporate obligations | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 9,216 | 4,010 |
Recurring | Level 2 | Mutual funds and other equities | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | ||
Fair value measurements of assets on a recurring basis | ||
Total | 0 | 0 |
Recurring | Level 3 | U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Municipal securities | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | U.S. Government-sponsored agencies | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Corporate obligations | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Mutual funds and other equities | ||
Fair value measurements of assets on a recurring basis | ||
Investment securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Fai71
Fair Value Measurements - Fair Value Measurement on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair value measurements of assets on a nonrecurring basis | |||||
Investment securities held to maturity, Total | $ 34,023 | $ 34,023 | $ 36,874 | ||
Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | 0 | 0 | ||
Investment securities held to maturity, Total | 0 | 0 | 0 | ||
Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | 0 | 0 | ||
Investment securities held to maturity, Total | 34,023 | 34,023 | 36,874 | ||
Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 2,393,455 | 2,393,455 | 2,279,081 | ||
Investment securities held to maturity, Total | 0 | 0 | 0 | ||
Nonrecurring | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 865 | 865 | 2,340 | ||
Total assets measured | 862 | 862 | 1,919 | ||
Total, Net Losses (Gains) Recorded in Earnings | 0 | $ 562 | 102 | $ 350 | |
Nonrecurring | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total assets measured | 0 | 0 | 0 | ||
Nonrecurring | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total assets measured | 0 | 0 | 11 | ||
Nonrecurring | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total assets measured | 862 | 862 | 1,908 | ||
Nonrecurring | Private Residential Collateralized Mortgage Obligations | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 36 | ||||
Investment securities held to maturity, Total | 11 | ||||
Total, Net Losses (Gains) Recorded in Earnings | 0 | 45 | |||
Nonrecurring | Private Residential Collateralized Mortgage Obligations | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Investment securities held to maturity, Total | 0 | ||||
Nonrecurring | Private Residential Collateralized Mortgage Obligations | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Investment securities held to maturity, Total | 11 | ||||
Nonrecurring | Private Residential Collateralized Mortgage Obligations | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Investment securities held to maturity, Total | 0 | ||||
Nonrecurring | Impaired Loans | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 865 | 865 | 2,304 | ||
Impaired originated loans, Total | 862 | 862 | 1,908 | ||
Total, Net Losses (Gains) Recorded in Earnings | 0 | 562 | 102 | 305 | |
Nonrecurring | Impaired Loans | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | 0 | 0 | ||
Nonrecurring | Impaired Loans | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | 0 | 0 | ||
Nonrecurring | Impaired Loans | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 862 | 862 | 1,908 | ||
Nonrecurring | Impaired Loans | Commercial Business | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 161 | ||||
Impaired originated loans, Total | 138 | ||||
Total, Net Losses (Gains) Recorded in Earnings | 181 | (79) | |||
Nonrecurring | Impaired Loans | Commercial Business | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Commercial Business | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Commercial Business | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 138 | ||||
Nonrecurring | Impaired Loans | Commercial Business | Commercial and Industrial | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 161 | ||||
Impaired originated loans, Total | 138 | ||||
Total, Net Losses (Gains) Recorded in Earnings | 118 | (79) | |||
Nonrecurring | Impaired Loans | Commercial Business | Commercial and Industrial | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Commercial Business | Commercial and Industrial | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Commercial Business | Commercial and Industrial | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 138 | ||||
Nonrecurring | Impaired Loans | Commercial Business | Non-owner Occupied Commercial Real Estate | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 0 | ||||
Impaired originated loans, Total | 0 | ||||
Total, Net Losses (Gains) Recorded in Earnings | 63 | 0 | |||
Nonrecurring | Impaired Loans | Commercial Business | Non-owner Occupied Commercial Real Estate | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Commercial Business | Non-owner Occupied Commercial Real Estate | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Commercial Business | Non-owner Occupied Commercial Real Estate | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Real Estate Construction and Land Development | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 865 | 865 | 2,094 | ||
Impaired originated loans, Total | 862 | 862 | 1,725 | ||
Total, Net Losses (Gains) Recorded in Earnings | 0 | 381 | 102 | 384 | |
Nonrecurring | Impaired Loans | Real Estate Construction and Land Development | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | 0 | 0 | ||
Nonrecurring | Impaired Loans | Real Estate Construction and Land Development | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | 0 | 0 | ||
Nonrecurring | Impaired Loans | Real Estate Construction and Land Development | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 862 | 862 | 1,725 | ||
Nonrecurring | Impaired Loans | Real Estate Construction and Land Development | One-to-four Family Residential | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 865 | 865 | 2,094 | ||
Impaired originated loans, Total | 862 | 862 | 1,725 | ||
Total, Net Losses (Gains) Recorded in Earnings | 0 | 381 | 102 | 384 | |
Nonrecurring | Impaired Loans | Real Estate Construction and Land Development | One-to-four Family Residential | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | 0 | 0 | ||
Nonrecurring | Impaired Loans | Real Estate Construction and Land Development | One-to-four Family Residential | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | 0 | 0 | ||
Nonrecurring | Impaired Loans | Real Estate Construction and Land Development | One-to-four Family Residential | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | $ 862 | $ 862 | 1,725 | ||
Nonrecurring | Impaired Loans | Consumer | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Total, Basis | 49 | ||||
Impaired originated loans, Total | 45 | ||||
Total, Net Losses (Gains) Recorded in Earnings | $ 0 | $ 0 | |||
Nonrecurring | Impaired Loans | Consumer | Level 1 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Consumer | Level 2 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | 0 | ||||
Nonrecurring | Impaired Loans | Consumer | Level 3 | |||||
Fair value measurements of assets on a nonrecurring basis | |||||
Impaired originated loans, Total | $ 45 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information, Level 3 (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Nonrecurring | Impaired Loans | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Impaired loans | $ 862 | $ 1,908 |
Level 3 | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Impaired loans | 2,393,455 | 2,279,081 |
Level 3 | Nonrecurring | Impaired Loans | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Impaired loans | $ 862 | $ 1,908 |
Valuation Technique(s) | Market approach | Market approach |
Unobservable Input(s) | Adjustment for differences between the comparable sales | Adjustment for differences between the comparable sales |
Level 3 | Nonrecurring | Impaired Loans | Minimum | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Range of Inputs; Weighted Average | (8.50%) | (47.50%) |
Level 3 | Nonrecurring | Impaired Loans | Maximum | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Range of Inputs; Weighted Average | 10.40% | 96.20% |
Level 3 | Nonrecurring | Impaired Loans | Weighted Average | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Range of Inputs; Weighted Average | 0.95% | 7.00% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Investment securities held to maturity | $ 34,023 | $ 36,874 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 142,477 | 121,636 |
Other interest earning deposits | 0 | 0 |
Investment securities available for sale | 1,982 | 1,973 |
Investment securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Total loans receivable, net | 0 | 0 |
Accrued interest receivable | 9 | 3 |
Financial Liabilities: | ||
Noninterest deposits, NOW accounts, money market accounts and savings accounts | 2,616,659 | 2,380,934 |
Certificate of deposit accounts | 0 | 0 |
Total deposits | 2,616,659 | 2,380,934 |
Securities sold under agreement to repurchase | 22,829 | 32,181 |
Junior subordinated debentures | 0 | 0 |
Accrued interest payable | 52 | 62 |
Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Other interest earning deposits | 5,259 | 10,145 |
Investment securities available for sale | 701,111 | 740,873 |
Investment securities held to maturity | 34,023 | 36,874 |
Loans held for sale | 8,177 | 5,710 |
Total loans receivable, net | 0 | 0 |
Accrued interest receivable | 3,421 | 3,009 |
Financial Liabilities: | ||
Noninterest deposits, NOW accounts, money market accounts and savings accounts | 0 | 0 |
Certificate of deposit accounts | 436,977 | 525,768 |
Total deposits | 436,977 | 525,768 |
Securities sold under agreement to repurchase | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Accrued interest payable | 137 | 328 |
Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Other interest earning deposits | 0 | 0 |
Investment securities available for sale | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Total loans receivable, net | 2,393,455 | 2,279,081 |
Accrued interest receivable | 7,401 | 6,824 |
Financial Liabilities: | ||
Noninterest deposits, NOW accounts, money market accounts and savings accounts | 0 | 0 |
Certificate of deposit accounts | 0 | 0 |
Total deposits | 0 | 0 |
Securities sold under agreement to repurchase | 0 | 0 |
Junior subordinated debentures | 19,351 | 19,082 |
Accrued interest payable | 20 | 21 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 142,477 | 121,636 |
Other interest earning deposits | 5,244 | 10,126 |
Investment securities available for sale | 703,093 | 742,846 |
Investment securities held to maturity | 32,832 | 35,814 |
Federal Home Loan Bank stock | 4,148 | 12,188 |
Loans held for sale | 7,981 | 5,582 |
Total loans receivable, net | 2,375,040 | 2,223,348 |
Accrued interest receivable | 10,831 | 9,836 |
Financial Liabilities: | ||
Noninterest deposits, NOW accounts, money market accounts and savings accounts | 2,616,659 | 2,380,934 |
Certificate of deposit accounts | 437,539 | 525,397 |
Total deposits | 3,054,198 | 2,906,331 |
Securities sold under agreement to repurchase | 22,829 | 32,181 |
Junior subordinated debentures | 19,351 | 19,082 |
Accrued interest payable | 209 | 411 |
Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 142,477 | 121,636 |
Other interest earning deposits | 5,259 | 10,145 |
Investment securities available for sale | 703,093 | 742,846 |
Investment securities held to maturity | 34,023 | 36,874 |
Loans held for sale | 8,177 | 5,710 |
Total loans receivable, net | 2,393,455 | 2,279,081 |
Accrued interest receivable | 10,831 | 9,836 |
Financial Liabilities: | ||
Noninterest deposits, NOW accounts, money market accounts and savings accounts | 2,616,659 | 2,380,934 |
Certificate of deposit accounts | 436,977 | 525,768 |
Total deposits | 3,053,636 | 2,906,702 |
Securities sold under agreement to repurchase | 22,829 | 32,181 |
Junior subordinated debentures | 19,351 | 19,082 |
Accrued interest payable | $ 209 | $ 411 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ||||
Fair value assets transfers between level 1 and level 2 transfer amount | $ 0 | $ 0 | $ 0 | $ 0 |
Business Combination - Textuals
Business Combination - Textuals (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Apr. 30, 2014 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 119,029 | $ 119,029 | ||||
Washington Banking | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares of common stock issued | 0.89000 | |||||
Share price paid in cash (in usd per share) | $ 2.75 | |||||
Common stock, shares outstanding | 15,587,154 | |||||
Closing price per share (in usd per share) | $ 16.16 | |||||
Total consideration paid | $ 269,619 | |||||
Number of shares issued in conjunction with the merger | 14,000,178 | |||||
Capitalized stock issuance costs | $ 489 | |||||
Goodwill | $ 89,664 | |||||
Merger-related costs | $ 1,300 | $ 7,400 |
Business Combination - Consider
Business Combination - Consideration Transferred (Details) - Washington Banking $ in Thousands | May. 01, 2014USD ($)shares |
Business Acquisition [Line Items] | |
Cash paid for business combination | $ 42,895 |
Total consideration transferred | $ 269,619 |
Total shares issued | shares | 13,870,716 |
Converted restricted stock award units | shares | 129,462 |
Number of shares surrendered at conversion | shares | 26,783 |
Fair value of forfeited shares | $ 433 |
Restricted Stock Units (RSUs) [Member] | |
Business Acquisition [Line Items] | |
Fair value of equity interest issued | 2,092 |
Employee Stock Option [Member] | |
Business Acquisition [Line Items] | |
Fair value of equity interest issued | 481 |
Common Stock [Member] | |
Business Acquisition [Line Items] | |
Fair value of equity interest issued | 224,151 |
Cash Paid Due to Fractional Shares [Member] | |
Business Acquisition [Line Items] | |
Cash paid | $ 3,000 |
Number of shares paid in cash | shares | 165,000 |
Cash Paid from Dissenters [Member] | |
Business Acquisition [Line Items] | |
Cash paid | $ 27,000 |
Number of shares paid in cash | shares | 1,686,000 |
Business Combination - Prelimin
Business Combination - Preliminary Fair Value Estimate (Details) - Washington Banking $ in Thousands | May. 01, 2014USD ($) |
Assets | |
Cash and cash equivalents | $ 74,947 |
Investment securities available for sale | 458,312 |
Loans held for sale | 3,923 |
Loans receivable | 895,978 |
FDIC indemnification asset | 7,174 |
Other real estate owned ($5,122 covered by FDIC shared-loss agreements) | 7,121 |
Premises and equipment | 31,776 |
Federal Home Loan Bank stock | 7,064 |
Bank owned life insurance | 32,519 |
Accrued interest receivable | 4,943 |
Other intangible assets | 11,194 |
Prepaid expenses and other assets | 14,852 |
Total assets acquired | 1,656,853 |
Liabilities | |
Deposits | 1,433,894 |
Junior subordinated debentures | 18,937 |
Accrued expenses and other liabilities | 24,067 |
Total liabilities assumed | 1,476,898 |
Net assets acquired | 179,955 |
Covered Loans | |
Assets | |
Loans receivable | 107,050 |
Other real estate owned ($5,122 covered by FDIC shared-loss agreements) | $ 5,122 |
Business Combination - Summary
Business Combination - Summary of Net Assets Purchased and Goodwill Recognized (Details) - USD ($) $ in Thousands | May. 01, 2014 | Sep. 30, 2015 | Dec. 31, 2014 |
Fair value adjustments: | |||
Goodwill recognized from the Washington Banking Merger | $ (119,029) | $ (119,029) | |
Washington Banking | |||
Business Acquisition [Line Items] | |||
Cost basis of net assets on merger date | $ 181,782 | ||
Consideration transferred | (269,619) | ||
Fair value adjustments: | |||
Loans held for sale | 86 | ||
Loans receivable | (12,811) | ||
FDIC indemnification asset | 357 | ||
Other real estate owned | 387 | ||
Premises and equipment | (1,540) | ||
Other intangible assets | 10,216 | ||
Prepaid expenses and other assets | (6,416) | ||
Deposits | (1,737) | ||
Junior subordinated debentures | 6,837 | ||
Accrued expenses and other liabilities | (3,590) | ||
Goodwill recognized from the Washington Banking Merger | (89,664) | ||
Washington Banking | Covered Loans | |||
Fair value adjustments: | |||
Loans receivable | $ 6,384 |
Business Combination - Unaudite
Business Combination - Unaudited Pro Forma (Details) - Washington Banking $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2014USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Interest income | $ | $ 105,367 |
Net income | $ | $ 25,589 |
Basic earnings per common share (in usd per share) | $ 0.85 |
Diluted earnings per common share (in usd per share) | $ 0.85 |