Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EAGLE BANCORP INC | |
Trading Symbol | EGBN | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 33,396,316 | |
Amendment Flag | false | |
Entity Central Index Key | 1,050,441 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Assets | |||
Cash and due from banks | $ 10,284 | $ 9,097 | $ 8,602 |
Federal funds sold | 6,276 | 3,516 | 9,480 |
Interest bearing deposits with banks and other short-term investments | 380,336 | 243,412 | 97,400 |
Investment securities available for sale, at fair value | 423,709 | 382,343 | 378,990 |
Federal Reserve and Federal Home Loan Bank stock | 16,828 | 22,560 | 10,626 |
Loans held for sale | 132,683 | 44,317 | 35,411 |
Loans | 4,550,897 | 4,312,399 | 3,279,429 |
Less allowance for credit losses | (48,921) | (46,075) | (43,552) |
Loans, net | 4,501,976 | 4,266,324 | 3,235,877 |
Premises and equipment, net | 17,185 | 19,099 | 17,797 |
Deferred income taxes | 34,164 | 32,511 | 25,586 |
Bank owned life insurance | 57,889 | 56,594 | 40,361 |
Intangible assets, net | 109,957 | 109,908 | 3,379 |
Other real estate owned | 10,715 | 13,224 | 8,843 |
Other assets | 51,801 | 44,975 | 42,092 |
Total Assets | 5,753,803 | 5,247,880 | 3,914,444 |
Deposits: | |||
Noninterest bearing demand | 1,370,590 | 1,175,799 | 945,485 |
Interest bearing transaction | 220,382 | 143,628 | 128,415 |
Savings and money market | 2,439,337 | 2,302,600 | 1,899,430 |
Time, $100,000 or more | 430,321 | 393,132 | 186,063 |
Other time | 364,803 | 295,609 | 208,534 |
Total deposits | 4,825,433 | 4,310,768 | 3,367,927 |
Customer repurchase agreements | 53,394 | 61,120 | 60,646 |
Other short-term borrowings | 100,000 | ||
Long-term borrowings | 74,050 | 119,300 | 39,300 |
Other liabilities | 35,865 | 35,933 | 19,750 |
Total Liabilities | 4,988,742 | 4,627,121 | 3,487,623 |
Shareholders' Equity | |||
Common stock, par value $.01 per share; shares authorized 100,000,000, shares issued and outstanding 33,394,563, 30,139,396 and 25,985,659 respectively | 330 | 296 | 255 |
Warrant | 946 | 946 | 946 |
Additional paid in capital | 498,704 | 394,933 | 245,629 |
Retained earnings | 190,035 | 150,037 | 121,553 |
Accumulated other comprehensive income | 3,146 | 2,647 | 1,838 |
Total Shareholders' Equity | 765,061 | 620,759 | 426,821 |
Total Liabilities and Shareholders' Equity | 5,753,803 | 5,247,880 | 3,914,444 |
Series B Preferred Stock [Member] | |||
Shareholders' Equity | |||
Preferred stock, par value $.01 per share, shares authorized 1,000,000, Series B, $1,000 per share liquidation preference, shares issued and outstanding 56,600 at June 30, 2015, December 31, 2014 and June 30, 2014; Series C, $1,000 per share liquidation preference, shares issued and outstanding 15,300 at June 30, 2015, and December 31, 2014, and -0- at June 30, 2014 | $ 71,900 | $ 71,900 | $ 56,600 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,394,563 | 30,139,396 | 25,985,659 |
Common stock, shares outstanding | 33,394,563 | 30,139,396 | 25,985,659 |
Series B Preferred Stock [Member] | |||
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, per share liquidation preference (in Dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Preferred stock, shares issued | 56,600 | 56,600 | 56,600 |
Preferred stock, shares outstanding | 56,600 | 56,600 | 56,600 |
Series C Preferred Stock [Member] | |||
Preferred stock, per share liquidation preference (in Dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 |
Preferred stock, shares issued | 15,300 | 15,300 | 0 |
Preferred stock, shares outstanding | 15,300 | 15,300 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - Scenario, Unspecified [Domain] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest Income | ||||
Interest and fees on loans | $ 59,878 | $ 42,316 | $ 117,057 | $ 82,679 |
Interest and dividends on investment securities | 2,305 | 2,323 | 4,444 | 4,656 |
Interest on balances with other banks and short-term investments | 238 | 116 | 376 | 254 |
Interest on federal funds sold | 2 | 4 | 11 | 7 |
Total interest income | 62,423 | 44,759 | 121,888 | 87,596 |
Interest Expense | ||||
Interest on deposits | 3,687 | 2,324 | 6,929 | 4,736 |
Interest on customer repurchase agreements | 34 | 31 | 61 | 69 |
Interest on short-term borrowings | 54 | |||
Interest on long-term borrowings | 1,152 | 384 | 2,563 | 764 |
Total interest expense | 4,873 | 2,739 | 9,607 | 5,569 |
Net Interest Income | 57,550 | 42,020 | 112,281 | 82,027 |
Provision for Credit Losses | 3,471 | 3,134 | 6,781 | 5,068 |
Net Interest Income After Provision For Credit Losses | 54,079 | 38,886 | 105,500 | 76,959 |
Noninterest Income | ||||
Service charges on deposits | 1,283 | 1,219 | 2,616 | 2,411 |
Gain on sale of loans | 3,294 | 1,021 | 6,881 | 2,864 |
Gain on sale of investment securities | 2 | 2,164 | 10 | |
Loss on early extinguishment of debt | (1,130) | |||
Increase in the cash surrender value of bank owned life insurance | 406 | 310 | 796 | 624 |
Other income | 1,250 | 1,259 | 2,710 | 2,365 |
Total noninterest income | 6,233 | 3,811 | 14,037 | 8,274 |
Noninterest Expense | ||||
Salaries and employee benefits | 14,683 | 13,015 | 30,389 | 26,623 |
Premises and equipment expenses | 4,072 | 3,107 | 8,082 | 6,196 |
Marketing and advertising | 735 | 415 | 1,420 | 877 |
Data processing | 1,838 | 1,432 | 3,622 | 3,020 |
Legal, accounting and professional fees | 870 | 799 | 1,852 | 1,773 |
FDIC insurance | 783 | 563 | 1,554 | 1,107 |
Merger expenses | 26 | 576 | 137 | 576 |
Other expenses | 3,591 | 2,228 | 7,615 | 5,061 |
Total noninterest expense | 26,598 | 22,135 | 54,671 | 45,233 |
Income Before Income Tax Expense | 33,714 | 20,562 | 64,866 | 40,000 |
Income Tax Expense | 12,776 | 7,618 | 24,510 | 14,557 |
Net Income | 20,938 | 12,944 | 40,356 | 25,443 |
Preferred Stock Dividends | 179 | 142 | 359 | 283 |
Net Income Available to Common Shareholders | $ 20,759 | $ 12,802 | $ 39,997 | $ 25,160 |
Earnings Per Common Share | ||||
Basic (in Dollars per share) | $ 0.62 | $ 0.49 | $ 1.24 | $ 0.97 |
Diluted (in Dollars per share) | $ 0.61 | $ 0.48 | $ 1.22 | $ 0.95 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Income | $ 20,938 | $ 12,944 | $ 40,356 | $ 25,443 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on securities available for sale | (2,043) | 2,341 | (112) | 5,163 |
Unrealized gain on derivatives | 1,909 | 1,909 | ||
Reclassification adjustment for net gains included in net income | (1) | (1,298) | (6) | |
Net change other comprehensive income (loss) | (134) | 2,340 | 499 | 5,157 |
Comprehensive Income | $ 20,804 | $ 15,284 | $ 40,855 | $ 30,600 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Warrant [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Comprehensive Income [Member] | Total |
Beginning balance at Dec. 31, 2013 | $ 56,600 | $ 253 | $ 946 | $ 242,990 | $ 96,393 | $ (3,319) | $ 393,863 |
Beginning balance, shares (in Shares) at Dec. 31, 2013 | 56,600 | 25,885,863 | |||||
Ending balance at Jun. 30, 2014 | $ 56,600 | $ 255 | 946 | 245,629 | 121,553 | 1,838 | 426,821 |
Ending balance, shares (in Shares) at Jun. 30, 2014 | 56,600 | 25,985,659 | |||||
Net Income | 25,443 | 25,443 | |||||
Net change in other comprehensive income | 5,157 | 5,157 | |||||
Stock-based compensation | 1,915 | 1,915 | |||||
Issuance of common stock related to options exercised | 305 | $ 305 | |||||
Issuance of common stock related to options exercised, shares (in Shares) | 24,897 | 24,897 | |||||
Tax benefits related to non-qualified stock compensation | 123 | $ 123 | |||||
Issuance of common stock upon vesting of restricted stock awards, net of shares withheld for payroll taxes | $ 2 | (2) | |||||
Issuance of common stock upon vesting of restricted stock awards, net of shares withheld for payroll taxes, shares (in Shares) | (14,042) | ||||||
Restricted stock awards granted (in Shares) | 78,947 | ||||||
Issuance of common stock related to employee stock purchase plan | 298 | 298 | |||||
Issuance of common stock related to employee stock purchase plan, shares (in Shares) | 9,994 | ||||||
Preferred stock dividends | (283) | (283) | |||||
Beginning balance at Dec. 31, 2014 | $ 71,900 | $ 296 | 946 | 394,933 | 150,037 | 2,647 | 620,759 |
Beginning balance, shares (in Shares) at Dec. 31, 2014 | 71,900 | 30,139,396 | |||||
Ending balance at Jun. 30, 2015 | $ 71,900 | $ 330 | $ 946 | 498,704 | 190,035 | 3,146 | 765,061 |
Ending balance, shares (in Shares) at Jun. 30, 2015 | 71,900 | 33,394,563 | |||||
Net Income | 40,356 | 40,356 | |||||
Net change in other comprehensive income | $ 499 | 499 | |||||
Stock-based compensation | 2,407 | 2,407 | |||||
Issuance of common stock related to options exercised | $ 4 | 4,530 | $ 4,534 | ||||
Issuance of common stock related to options exercised, shares (in Shares) | 365,622 | 369,952 | |||||
Tax benefits related to non-qualified stock compensation | 1,867 | $ 1,867 | |||||
Issuance of common stock upon vesting of restricted stock awards, net of shares withheld for payroll taxes | $ 2 | (2) | |||||
Issuance of common stock upon vesting of restricted stock awards, net of shares withheld for payroll taxes, shares (in Shares) | (16,345) | ||||||
Restricted stock awards granted (in Shares) | 78,070 | ||||||
Shares issued in public offering, net of issuance costs of $5,302 | $ 28 | 94,605 | 94,633 | ||||
Shares issued in public offering, net of issuance costs of $5,302 (in Shares) | 2,816,900 | ||||||
Issuance of common stock related to employee stock purchase plan | 368 | 368 | |||||
Issuance of common stock related to employee stock purchase plan, shares (in Shares) | 10,920 | ||||||
Cash paid in lieu of fractional shares upon merger with Virginia Heritage | $ (4) | (4) | |||||
Preferred stock dividends | $ (358) | $ (358) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parentheticals) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Issuance costs | $ 5,302 |
Common Stock [Member] | |
Issuance costs | 5,302 |
Additional Paid-in Capital [Member] | |
Issuance costs | $ 5,302 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 40,356 | $ 25,443 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Provision for credit losses | 6,781 | 5,068 |
Depreciation and amortization | 6,005 | 2,292 |
Gains on sale of loans | (6,881) | (2,864) |
Securities premium amortization (discount accretion), net | 1,346 | 1,721 |
Origination of loans held for sale | (553,838) | (221,231) |
Proceeds from sale of loans held for sale | 472,353 | 230,714 |
Net increase in cash surrender value of BOLI | (796) | (624) |
(Increase) decrease in deferred income taxes | (1,653) | 3,363 |
Decrease in fair value of other real estate owned | 750 | 505 |
Net loss on sale of other real estate owned | 165 | 100 |
Net gain on sale of investment securities | (2,164) | (10) |
Loss on early extinguishment of debt | 1,130 | |
Stock-based compensation expense | 2,407 | 1,915 |
Excess tax benefits from stock-based compensation | (1,867) | (123) |
Increase in other assets | (6,826) | (11,380) |
Decrease in other liabilities | (68) | (12,705) |
Net cash (used in) provided by operating activities | (42,800) | 22,184 |
Cash Flows From Investing Activities: | ||
Decrease in interest bearing deposits with other banks and short-term investments | 436 | 43 |
Purchases of available for sale investment securities | (132,871) | (26,852) |
Proceeds from maturities of available for sale securities | 27,121 | 11,956 |
Proceeds from sale/call of available for sale securities | 65,701 | 17,485 |
Purchases of Federal Reserve and Federal Home Loan Bank stock | (2,368) | (53) |
Proceeds from redemption of Federal Reserve and Federal Home Loan Bank stock | 8,100 | 699 |
Net increase in loans | (243,933) | (336,985) |
Proceeds from sale of other real estate owned | 986 | 108 |
Purchases of BOLI | (499) | |
Purchases of annuities | (992) | |
Bank premises and equipment acquired | (739) | (3,194) |
Net cash used in investing activities | (279,058) | (336,793) |
Cash Flows From Financing Activities: | ||
Increase in deposits | 514,665 | 142,513 |
Decrease in customer repurchase agreements | (7,726) | (19,825) |
Issuance of common stock | 94,633 | |
Decrease in short-term borrowings | (100,000) | |
Decrease in long-term borrowings | (45,250) | |
Payment of dividends on preferred stock | (358) | (283) |
Proceeds from exercise of stock options | 4,534 | 305 |
Excess tax benefits from stock-based compensation | 1,867 | 123 |
Payment in lieu of fractional shares | (4) | |
Proceeds from employee stock purchase plan | 368 | 298 |
Net cash provided by financing activities | 462,729 | 123,131 |
Net Increase (Decrease) In Cash and Cash Equivalents | 140,871 | (191,478) |
Cash and Cash Equivalents at Beginning of Period | 256,025 | 306,960 |
Cash and Cash Equivalents at End of Period | 396,896 | 115,482 |
Supplemental Cash Flows Information: | ||
Interest paid | 9,913 | 5,770 |
Income taxes paid | 27,950 | 20,200 |
Non-Cash Investing Activities | ||
Transfers from loans to other real estate owned | 1,500 | $ 330 |
Transfers from other real estate owned to loans | $ 2,192 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 1. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Eagle Bancorp, Inc. and its subsidiaries (the “Company”), EagleBank (the “Bank”), Eagle Commercial Ventures, LLC (“ECV”), Eagle Insurance Services, LLC, and Bethesda Leasing, LLC, with all significant intercompany transactions eliminated. The consolidated financial statements of the Company included herein are unaudited. The consolidated financial statements reflect all adjustments, consisting of normal recurring accruals that in the opinion of management, are necessary to present fairly the results for the periods presented. The amounts as of and for the year ended December 31, 2014 were derived from audited consolidated financial statements. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. There have been no significant changes to the Company’s Accounting Policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company believes that the disclosures are adequate to make the information presented not misleading. Certain reclassifications have been made to amounts previously reported to conform to the current period presentation. These statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Operating results for the six and three months ended June 30, 2015 are not necessarily indicative of the results of operations to be expected for the remainder of the year, or for any other period. Nature of Operations The Company, through the Bank, conducts a full service community banking business, primarily in Northern Virginia, Montgomery County, Maryland, and Washington, D.C. The primary financial services offered by the Bank include real estate, commercial and consumer lending, as well as traditional deposit and repurchase agreement products. The Bank is also active in the origination and sale of residential mortgage loans and the origination of small business loans. The guaranteed portion of small business loans, guaranteed by the Small Business Administration (“SBA”), is typically sold to third party investors in a transaction apart from the loan’s origination. As of June 30, 2015, the Bank offers its products and services through twenty-two banking offices, four lending centers and various electronic capabilities, including remote deposit services and mobile banking services. Eagle Insurance Services, LLC, a subsidiary of the Bank, offers access to insurance products and services through a referral program with a third party insurance broker. Eagle Commercial Ventures, LLC, a direct subsidiary of the Company, provides subordinated financing for the acquisition, development and construction of real estate projects; these transactions involve higher levels of risk, together with commensurate higher returns. Refer to Higher Risk Lending – Revenue Recognition below. Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations.” On October 31, 2014, the Company completed its acquisition of Virginia Heritage Bank (“Virginia Heritage”). The acquisition of Virginia Heritage was effected through the merger (the “Merger”) of Virginia Heritage with and into EagleBank, in accordance with the Agreement and Plan of Reorganization (the “Merger Agreement”) among the Company, EagleBank and Virginia Heritage, dated June 9, 2014. The acquisition added approximately $800 million in loans, $3 million in loans held for sale, $645 million in deposits, and $95 million in borrowings. An identified intangible related to core deposits was recorded for $4.6 million, which is being amortized over its estimated useful life of approximately 6 years and an initial intangible for goodwill was recorded for approximately $102.3 million. Additionally, in connection with the transaction, the Company recorded a fair value credit mark on the loan portfolio for approximately $12.5 million. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold, and interest bearing deposits with other banks which have an original maturity of three months or less. Loans Held for Sale The Company regularly engages in sales of residential mortgage loans and the guaranteed portion of SBA loans originated by the Bank. Loans held for sale are carried at the lower of aggregate cost or fair value. Fair value is derived from secondary market quotations for similar instruments. Gains and losses on sales of these loans are recorded as a component of noninterest income in the consolidated statements of operations. At June 30, 2015, the Company also classified as held for sale $83.4 million of indirect consumer loans acquired in the Merger. Fair value in the case of the indirect consumer loan portfolio was computed at the contract price and terms. The Company’s current practice is to sell residential mortgage loans on a servicing released basis, and, therefore, it has no intangible asset recorded for the value of such servicing as of June 30, 2015, December 31, 2014 and June 30, 2014. The sale of the guaranteed portion of SBA loans on a servicing retained basis gives rise to an Excess Servicing Asset, which is computed on a loan by loan basis with the unamortized amount being included in Intangible assets in the consolidated balance sheets. This Excess Servicing Asset is being amortized on a straight-line basis (with adjustment for prepayments) as an offset to servicing fees collected and is included in Other income in the consolidated statement of operations. The Company enters into commitments to originate residential mortgage loans whereby the interest rate on the loan is determined prior to funding (i.e. interest rate lock commitments). Such interest rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. To protect against the price risk inherent in residential mortgage loan commitments, the Company utilizes both “best efforts” and “mandatory delivery” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Under a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor and the investor commits to a price that it will purchase the loan from the Company if the loan to the underlying borrower closes. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the investor commits to purchase a loan at a price representing a premium on the day the borrower commits to an interest rate with the intent that the buyer/investor has assumed the interest rate risk on the loan. As a result, the Company is not generally exposed to losses on loans sold utilizing best efforts. Nor will it realize gains related to interest rate lock commitments due to changes in interest rates. The market values of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because interest rate lock commitments and best efforts contracts are not actively traded. Because of the high correlation between interest rate lock commitments and best efforts contracts, no gain or loss should occur on the interest rate lock commitments. Under a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay the investor a “pair-off” fee, based on then-current market prices, to compensate the investor for the shortfall. The interest rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. The Company manages the interest rate risk on interest rate lock commitments by entering into forward sale contracts of mortgage backed securities, whereby the Company obtains the right to deliver securities to investors in the future at a specified price. Such contracts are accounted for as derivatives and are recorded at fair value in derivative assets or liabilities, carried on the Consolidated Balance Sheet within Other Assets or Other Liabilities with changes in fair value recorded in other income within the Consolidated Statement of Income. The period of time between issuance of a loan commitment to the customer and closing and sale of the loan to an investor generally ranges from 30 to 90 days under current market conditions. The gross gains on loan sale are recognized based on new loan commitments with adjustment for price and pair-off activity. Commission expenses on loans held for sale are recognized based on loans closed. In circumstances where the Company does not deliver the whole loan to an investor, but rather elects to retain the loan in its portfolio, the loan is transferred from held for sale to loans at fair value at date of transfer. Investment Securities The Company has no securities classified as trading, or as held to maturity. Marketable equity securities and debt securities not classified as held to maturity or trading are classified as available-for-sale. Securities available-for-sale are acquired as part of the Company’s asset/liability management strategy and may be sold in response to changes in interest rates, current market conditions, loan demand, changes in prepayment risk and other factors. Securities available-for-sale are carried at fair value, with unrealized gains or losses being reported as accumulated other comprehensive income/(loss), a separate component of shareholders’ equity, net of deferred income tax. Realized gains and losses, using the specific identification method, are included as a separate component of noninterest income in the consolidated statements of operations. Premiums and discounts on investment securities are amortized/accreted to the earlier of call or maturity based on expected lives, which lives are adjusted based on prepayment assumptions and call optionality if any. Declines in the fair value of individual available-for-sale securities below their cost that are other-than-temporary in nature result in write-downs of the individual securities to their fair value. Factors affecting the determination of whether other-than-temporary impairment has occurred include a downgrading of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a change in management’s intent and ability to hold a security for a period of time sufficient to allow for any anticipated recovery in fair value. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) duration and magnitude of the decline in value, (2) the financial condition of the issuer or issuers and (3) structure of the security. The entire amount of an impairment loss is recognized in earnings only when (1) the Company intends to sell the security, or (2) it is more likely than not that the Company will have to sell the security before recovery of its amortized cost basis, or (3) the Company does not expect to recover the entire amortized cost basis of the security. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in shareholders’ equity as comprehensive income, net of deferred taxes. Loans Loans are stated at the principal amount outstanding, net of unamortized deferred costs and fees. Interest income on loans is accrued at the contractual rate on the principal amount outstanding. It is the Company’s policy to discontinue the accrual of interest when circumstances indicate that collection is doubtful. Deferred fees and costs are being amortized on the interest method over the term of the loan. Management considers loans impaired when, based on current information, it is probable that the Company will not collect all principal and interest payments according to contractual terms. Loans are evaluated for impairment in accordance with the Company’s portfolio monitoring and ongoing risk assessment procedures. Higher Risk Lending – Revenue Recognition T he Company has occasionally made higher risk acquisition, development, and construction (“ADC”) loans that entail higher risks than ADC loans made following normal underwriting practices (“higher risk loan transactions”). These higher risk loan transactions are currently made through the Company’s subsidiary, ECV. This activity is limited as to individual transaction amount and total exposure amounts, based on capital levels, and is carefully monitored. The loans are carried on the balance sheet at amounts outstanding and meet the loan classification requirements of the Accounting Standard Executive Committee (“AcSEC”) guidance reprinted from the CPA Letter, Special Supplement, dated February 10, 1986 (also referred to as Exhibit 1 to AcSEC Practice Bulletin No. 1). Additional interest earned on these higher risk loan transactions (as defined in the individual loan agreements) is recognized as realized under the provisions contained in AcSEC’s guidance reprinted from the CPA Letter, Special Supplement, dated February 10, 1986 (also referred to as Exhibit 1 to AcSEC Practice Bulletin No.1) and Staff Accounting Bulletin No. 101 (Revenue Recognition in Financial Statements). Certain additional interest is included as a component of noninterest income. ECV had six higher risk lending transactions outstanding as of June 30, 2015, as compared to four higher risk lending transactions outstanding as of December 31, 2014, amounting to $11.8 million and $6.2 million, respectively. Allowance for Credit Losses The allowance for credit losses represents an amount which, in management’s judgment, is adequate to absorb probable losses on loans and other extensions of credit that may become uncollectible. The adequacy of the allowance for credit losses is determined through careful and continuous review and evaluation of the loan portfolio and involves the balancing of a number of factors to establish a prudent level of allowance. Among the factors considered in evaluating the adequacy of the allowance for credit losses are lending risks associated with growth and entry into new markets, loss allocations for specific credits, the level of the allowance to nonperforming loans, historical loss experience, economic conditions, portfolio trends and credit concentrations, changes in the size and character of the loan portfolio, and management’s judgment with respect to current and expected economic conditions and their impact on the existing loan portfolio. Allowances for impaired loans are generally determined based on collateral values. Loans or any portion thereof deemed uncollectible are charged against the allowance, while recoveries are credited to the allowance. Management adjusts the level of the allowance through the provision for credit losses, which is recorded as a current period operating expense. The allowance for credit losses consists of allocated and unallocated components. The components of the allowance for credit losses represent an estimation done pursuant to ASC Topic 450, “Contingencies ,” ASC Topic 310, “Receivables.” Management believes that the allowance for credit losses is adequate; however, determination of the allowance is inherently subjective and requires significant estimates. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. Evaluation of the potential effects of these factors on estimated losses involves a high degree of uncertainty, including the strength and timing of economic cycles and concerns over the effects of a prolonged economic downturn in the current cycle. In addition, various regulatory agencies, as an integral part of their examination process, and independent consultants engaged by the Bank, periodically review the Bank’s loan portfolio and allowance for credit losses. Such review may result in recognition of additions to the allowance based on their judgments of information available to them at the time of their examination. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization computed using the straight-line method for financial reporting purposes. Premises and equipment are depreciated over the useful lives of the assets, which generally range from five to seven years for furniture, fixtures and equipment, to three to five years for computer software and hardware, and to ten to forty years for buildings and building improvements. Leasehold improvements are amortized over the terms of the respective leases, which may include renewal options where management has the positive intent to exercise such options, or the estimated useful lives of the improvements, whichever is shorter. The costs of major renewals and betterments are capitalized, while the costs of ordinary maintenance and repairs are expensed as incurred. These costs are included as a component of premises and equipment expenses on the consolidated statements of operations. Other Real Estate Owned (OREO) Assets acquired through loan foreclosure are held for sale and are recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. The new basis is supported by appraisals that are no more than twelve months old. Costs after acquisition are generally expensed. If the fair value of the asset declines, a write-down is recorded through noninterest expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in market conditions or appraised values. Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles are amortized over their estimated useful lives and subject to periodic impairment testing. Intangible assets (other than goodwill) are amortized to expense using accelerated or straight-line methods over their respective estimated useful lives. Goodwill and other intangibles are subject to impairment testing at the reporting unit level, which must be conducted at least annually. The Company performs impairment testing during the fourth quarter of each year or when events or changes in circumstances indicate the assets might be impaired. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing updated qualitative factors, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it does not have to perform the two-step goodwill impairment test. Determining the fair value of a reporting unit under the first step of the goodwill impairment test and determining the fair value of individual assets and liabilities of a reporting unit under the second step of the goodwill impairment test are judgmental and often involve the use of significant estimates and assumptions. Similarly, estimates and assumptions are used in determining the fair value of other intangible assets. Estimates of fair value are primarily determined using discounted cash flows, market comparisons and recent transactions. These approaches use significant estimates and assumptions including projected future cash flows, discount rates reflecting the market rate of return, projected growth rates and determination and evaluation of appropriate market comparables. Based on the results of quantitative assessments of all reporting units, the Company concluded that no impairment existed at December 31, 2014. However, future events could cause the Company to conclude that goodwill or other intangibles have become impaired, which would result in recording an impairment loss. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. Interest Rate Swap Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. With the exception of forward commitment contracts discussed above under Loans Held for Sale, the Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain variable rate deposits. At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”),or (3) an instrument with no hedging designation (“stand-alone derivative”). The Company has no fair value hedges or stand-alone derivatives, only cash flow hedges. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (a Consolidated Balance Sheet component of Shareholders Equity) and is reclassified into earnings in the same period(s) during which the hedged transaction affects earnings (i.e. the period when cash flows are exchanged between counterparties). For both fair value and cash flow hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income or expense. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Customer Repurchase Agreements The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, securities sold under agreements to repurchase are accounted for as collateralized financing arrangements and not as a sale and subsequent repurchase of securities. The agreements are entered into primarily as accommodations for large commercial deposit customers. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated balance of sheets, while the securities underlying the securities sold under agreements to repurchase remain in the respective assets accounts and are delivered to and held as collateral by third party trustees. Marketing and Advertising Marketing and advertising costs are generally expensed as incurred. Income Taxes The Company employs the liability method of accounting for income taxes as required by ASC Topic 740, “ Income Taxes Transfer of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. In certain cases, the recourse to the Bank to repurchase assets may exist but is deemed immaterial based on the specific facts and circumstances. Earnings per Common Share Basic net income per common share is derived by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period measured. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period measured including the potential dilutive effects of common stock equivalents. Stock-Based Compensation I n accordance with ASC Topic 718, “Compensation,” New Authoritative Accounting Guidance In April 2015, the FASB issued ASU No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . ” |
Note 2 - Cash and Due from Bank
Note 2 - Cash and Due from Banks | 6 Months Ended |
Jun. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 2 . Cash and Due from Banks Regulation D of the Federal Reserve Act requires that banks maintain noninterest reserve balances with the Federal Reserve Bank based principally on the type and amount of their deposits. During 2015, the Bank maintained balances at the Federal Reserve sufficient to meet reserve requirements, as well as significant excess reserves. Late in 2008, the Federal Reserve in connection with the Emergency Economic Stabilization Act of 2008 began paying a nominal amount of interest on balances held, which interest on excess reserves was increased under provisions of the Dodd Frank Wall Street Reform and Consumer Protection Act passed in July 2010. Additionally, the Bank maintains interest-bearing balances with the Federal Home Loan Bank of Atlanta and noninterest bearing balances with six domestic correspondent banks as compensation for services they provide to the Bank. |
Note 3 - Investment Securities
Note 3 - Investment Securities Available-for-Sale | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3 . Investment Securities Available-for-Sale Amortized cost and estimated fair value of securities available-for-sale are summarized as follows: Gross Gross Estimated June 30, 2015 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U. S. Government agency securities $ 59,360 $ 637 # $ 294 $ 59,703 Residential mortgage backed securities 256,196 1,517 2,050 255,663 Municipal bonds 90,593 2,872 627 92,838 Corporate bonds 15,100 - 59 15,041 Other equity investments 396 68 - 464 $ 421,645 $ 5,094 $ 3,030 $ 423,709 Gross Gross Estimated December 31, 2014 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U. S. Government agency securities $ 29,434 $ 500 # $ 40 $ 29,894 Residential mortgage backed securities 241,120 1,716 2,516 240,320 Municipal bonds 106,983 4,850 121 111,712 Other equity investments 396 21 - 417 $ 377,933 $ 7,087 $ 2,677 $ 382,343 Gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position are as follows: Less than 12 Months 12 Months or Greater Total Estimated Estimated Estimated June 30, 2015 Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Losses Value Losses Value Losses U. S. Government agency securities $ 25,511 $ 294 $ - $ - $ 25,511 $ 294 Residential mortgage backed securities 59,378 425 70,155 1,625 129,533 2,050 Municipal bonds 31,814 627 - - 31,814 627 Corporate bonds 11,307 59 - - 11,307 59 $ 128,010 $ 1,405 $ 70,155 $ 1,625 $ 198,165 $ 3,030 Less than 12 Months 12 Months or Greater Total Estimated Estimated Estimated December 31, 2014 Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Losses Value Losses Value Losses U. S. Government agency securities $ 2,001 $ 7 $ 1,750 $ 33 $ 3,751 $ 40 Residential mortgage backed securities 49,644 221 86,028 2,295 135,672 2,516 Municipal bonds 4,974 14 10,915 107 15,889 121 $ 56,619 $ 242 $ 98,693 $ 2,435 $ 155,312 $ 2,677 The unrealized losses that exist are generally the result of changes in market interest rates and interest spread relationships since original purchases. The weighted average duration of debt securities, which comprise 99.9% of total investment securities, is relatively short at 3.9 years. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. The Company does not believe that the investment securities that were in an unrealized loss position as of June 30, 2015 represent an other-than-temporary impairment for the reasons noted. The Company does not intend to sell the investments and it is more likely than not that the Company will not have to sell the securities before recovery of its amortized cost basis, which may be maturity. In addition, at June 30, 2015, the Company held $16.8 million in equity securities in a combination of Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) stocks, which are required to be held for regulatory purposes, and which are not marketable. The amortized cost and estimated fair value of investments available-for-sale by contractual maturity are shown in the table below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 December 31, 2014 Amortized Estimated Amortized Estimated (dollars in thousands) Cost Fair Value Cost Fair Value U. S. Government agency securities maturing: One year or less $ 30,957 $ 30,813 $ 2,998 $ 3,051 After one year through five years 21,905 22,266 19,947 20,276 Five years through ten years 6,498 6,624 6,489 6,567 Residential mortgage backed securities 256,196 255,663 241,120 240,320 Municipal bonds maturing: One year or less 1,530 1,534 2,410 2,438 After one year through five years 39,733 41,838 47,038 49,607 Five years through ten years 44,028 44,081 54,983 56,927 After ten years 5,302 5,385 2,552 2,740 Corporate bonds After one year through five years 15,100 15,041 - - Other equity investments 396 464 396 417 $ 421,645 $ 423,709 $ 377,933 $ 382,343 In 2015, gross realized gains on sales of investments securities were $2.5 million and gross realized losses on sales of investment securities were $294 thousand. In 2014, gross realized gains on sales of investment securities were $116 thousand and gross realized losses on sales of investment securities were $106 thousand. Process from sales and calls of investment securities in 2015 were $65.7 million, and in 2014 were $17.5 million. The carrying value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase, and certain lines of credit with correspondent banks at June 30, 2015 was $368.5 million, which is well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of June 30, 2015 and December 31, 2014, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. Government agency securities, which exceeded ten percent of shareholders’ equity. |
Note 4 - Mortgage Banking Deriv
Note 4 - Mortgage Banking Derivative | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Banking Derivative [Member] | |
Note 4 - Mortgage Banking Derivative [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 4 . Mortgage Banking Derivative As part of its mortgage banking activities, the Bank enters into interest rate lock commitments, which are commitments to originate loans where the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The Bank then commits the specific loan for sale with an investor if and only if settlement occurs (“best efforts”) or alternatively commits to deliver the locked loan in a binding (“mandatory”) delivery program with an investor. Certain loans under interest rate lock commitments are covered under forward sales contracts of mortgage backed securities (“MBS”) which provides a hedge against interest rate changes between the time the individual loan interest rate is locked with the borrower and the time the loan is sold to the investor. Forward sales contracts of MBS are recorded at fair value with changes in fair value recorded in noninterest income. Interest rate lock commitments and commitments to deliver loans to investors are considered derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. The Bank determines the fair value of interest rate lock commitments and delivery contracts by measuring the fair value of the underlying asset, which is impacted by current interest rates, taking into consideration the probability that the interest rate lock commitments will close or will be funded. Certain additional risks arise from forward delivery contracts in that the counterparties to the contracts may not be able to meet the terms of the contracts. The Bank does not expect any counterparty to any MBS to fail to meet its obligation. Additional risks inherent in mandatory delivery programs include the risk that, if the Bank does not close the loans subject to interest rate risk lock commitments, it may have a mismatch in its hedged position which could negatively impact earnings. The fair value of the derivatives is recorded as a freestanding asset or liability with the change in value being recognized in current earnings during the period of change. At June 30, 2015 the Bank had derivative financial instruments with a notional value of $48.6 million related to its forward contracts. The net fair value of these derivative instruments at June 30, 2015 was $165 thousand, which is included in other assets and $15 thousand included in other liabilities. At June 30, 2014 the Bank had derivative financial instruments with a notional value of $25.3 million related to its forward contracts. The net fair value of these derivative instruments at June 30, 2014 was $223 thousand included in other assets and $159 thousand included in other liabilities. Included in other noninterest income for the three and six months ended June 30, 2015 was a net loss of $101 thousand and $71 thousand, relating to derivative instruments. The amount included in other noninterest income for the three and six months ended June 30, 2015 pertaining to its hedging activities was a gain of $147 thousand and $318 thousand. For the three and six months ended June 30, 2014 was a net gain of $241 thousand, relating to derivative instruments. The amount included in other noninterest income for the three and six months ended June 30, 2014 pertaining to its hedging activities was a net realized loss of $159 thousand. |
Note 5 - Loans and Allowance fo
Note 5 - Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5 . Loans and Allowance for Credit Losses The Bank makes loans to customers primarily in the Washington, DC metropolitan area and surrounding communities. A substantial portion of the Bank’s loan portfolio consists of loans to businesses secured by real estate and other business assets. Loans, net of unamortized net deferred fees, at June 30, 2015, December 31, 2014, and June 30, 2014 are summarized by type as follows: June 30, 2015 December 31, 2014 June 30, 2014 (dollars in thousands) Amount % Amount % Amount % Commercial $ 960,506 21 % $ 916,226 21 % $ 726,611 22 % Income producing - commercial real estate 1,863,583 41 % 1,703,172 40 % 1,302,479 40 % Owner occupied - commercial real estate 497,834 11 % 461,581 11 % 330,073 10 % Real estate mortgage - residential 149,842 3 % 148,018 3 % 123,587 4 % Construction - commercial and residential 901,617 20 % 793,432 18 % 642,264 20 % Construction - C&I (owner occupied) 54,134 1 % 58,032 1 % 38,368 1 % Home equity 118,544 3 % 122,536 3 % 108,931 3 % Other consumer 4,837 - 109,402 3 % 7,116 - Total loans 4,550,897 100 % 4,312,399 100 % 3,279,429 100 % Less: Allowance for Credit Losses (48,921 ) (46,075 ) (43,552 ) Net loans $ 4,501,976 $ 4,266,324 $ 3,235,877 Unamortized net deferred fees amounted to $16.1 million, $15.6 million, and $14.5 million at June 30, 2015, December 31, 2014, and June 30, 2014, respectively. As of June 30, 2015 and December 31, 2014, the Bank serviced $31.4 million and $67.9 million, respectively, of SBA loans which are not reflected as loan balances on the consolidated balance sheets. Loan Origination / Risk Management The Company’s goal is to mitigate risks in the event of unforeseen threats to the loan portfolio as a result of economic downturn or other negative influences. Plans for mitigating inherent risks in managing loan assets include: carefully enforcing loan policies and procedures, evaluating each borrower’s business plan during the underwriting process and throughout the loan term, identifying and monitoring primary and alternative sources for loan repayment, and obtaining collateral to mitigate economic loss in the event of liquidation. Specific loan reserves are established based upon credit and/or collateral risks on an individual loan basis. A risk rating system is employed to proactively estimate loss exposure and provide a measuring system for setting general and specific reserve allocations. The composition of the Company’s loan portfolio is heavily weighted toward commercial real estate, both owner occupied and investment real estate. The combination of owner occupied commercial real estate and owner occupied commercial real estate construction represents 12% of the loan portfolio. At June 30, 2015, the combination of commercial real estate and real estate construction loans represents approximately 73% of the loan portfolio. When owner occupied commercial real estate and owner occupied commercial construction loans are excluded, the percentage of commercial real estate and construction loans to total loans decreases to 61%. These loans are underwritten to mitigate lending risks typical of this type of loan such as declines in real estate values, changes in borrower cash flow and general economic conditions. The Bank’s policy requires a maximum loan to value of 80% and minimum cash flow debt service coverage of 1.15 to 1.00. Personal guarantees are generally required, but may be limited. In making real estate commercial mortgage loans, the Bank generally requires that interest rates adjust not less frequently than five years. The Company is also an active traditional commercial lender providing loans for a variety of purposes, including working capital, equipment and account receivable financing. This loan category represents approximately 21% of the loan portfolio at June 30, 2015 and was generally variable or adjustable rate. Commercial loans meet reasonable underwriting standards, including appropriate collateral and cash flow necessary to support debt service. Personal guarantees are generally required, but may be limited. SBA loans represent 1% of the commercial loan category of loans. In originating SBA loans, the Company assumes the risk of non-payment on the unguaranteed portion of the credit. The Company generally sells the guaranteed portion of the loan generating noninterest income from the gains on sale, as well as servicing income on the portion participated. SBA loans are subject to the same cash flow analyses as other commercial loans. SBA loans are subject to a maximum loan size established by the SBA. Approximately 3% of the loan portfolio at June 30, 2015 consists of home equity loans and lines of credit and other consumer loans. These credits, while making up a smaller portion of the loan portfolio, demand the same emphasis on underwriting and credit evaluation as other types of loans advanced by the Bank. Approximately 3% of the loan portfolio consists of residential mortgage loans. These are typically loans underwritten to shorter terms, generally less than 10 years. Loans are secured primarily by duly recorded first deeds of trust. In some cases, the Bank may accept a recorded junior trust position. In general, borrowers will have a proven ability to build, lease, manage and/or sell a commercial or residential project and demonstrate satisfactory financial condition. Additionally, an equity contribution toward the project is customarily required. Construction loans require that the financial condition and experience of the general contractor and major subcontractors be satisfactory to the Bank. Guaranteed, fixed price contracts are required whenever appropriate, along with payment and performance bonds or completion bonds for larger scale projects. Loans intended for residential land acquisition, lot development and construction are made on the premise that the land: 1) is or will be developed for building sites for residential structures, and; 2) will ultimately be utilized for construction or improvement of residential zoned real properties, including the creation of housing. Residential development and construction loans will finance projects such as single family subdivisions, planned unit developments, townhouses, and condominiums. Residential land acquisition, development and construction loans generally are underwritten with a maximum term of 36 months, including extensions approved at origination. Commercial land acquisition and construction loans are secured by real property where loan funds will be used to acquire land and to construct or improve appropriately zoned real property for the creation of income producing or owner user commercial properties. Borrowers are generally required to put equity into each project at levels determined by the appropriate Loan Committee. Commercial land acquisition and construction loans generally are underwritten with a maximum term of 24 months. Substantially all construction draw requests must be presented in writing on American Institute of Architects documents and certified either by the contractor, the borrower and/or the borrower’s architect. Each draw request shall also include the borrower’s soft cost breakdown certified by the borrower or its Chief Financial Officer. Prior to an advance, the Bank or its contractor inspects the project to determine that the work has been completed, to justify the draw requisition. Commercial permanent loans are secured by improved real property which is generating income in the normal course of operation. Debt service coverage, assuming stabilized occupancy, must be satisfactory to support a permanent loan. The debt service coverage ratio is ordinarily at least 1.15 to 1.00. As part of the underwriting process, debt service coverage ratios are stress tested assuming a 200 basis point increase in interest rates from their current levels. Commercial permanent loans generally are underwritten with a term not greater than 10 years or the remaining useful life of the property, whichever is lower. The preferred term is between 5 to 7 years, with amortization to a maximum of 25 years. The Company’s loan portfolio includes ADC real estate loans including both investment and owner occupied projects. ADC loans amounted to $955.8 million at June 30, 2015. A portion of the ADC portfolio, both speculative and non-speculative, includes loan funded interest reserves at origination. ADC loans containing loan funded interest reserves represent approximately 41% of the outstanding ADC loan portfolio at June 30, 2015. The decision to establish a loan-funded interest reserve is made upon origination of the ADC loan and is based upon a number of factors considered during underwriting of the credit including: (i) the feasibility of the project; (ii) the experience of the sponsor; (iii) the creditworthiness of the borrower and guarantors; (iv) borrower equity contribution; and (v) the level of collateral protection. When appropriate, an interest reserve provides an effective means of addressing the cash flow characteristics of a properly underwritten ADC loan. The Company does not significantly utilize interest reserves in other loan products. The Company recognizes that one of the risks inherent in the use of interest reserves is the potential masking of underlying problems with the project and/or the borrower’s ability to repay the loan. In order to mitigate this inherent risk, the Company employs a series of reporting and monitoring mechanisms on all ADC loans, whether or not an interest reserve is provided, including: (i) construction and development timelines which are monitored on an ongoing basis which track the progress of a given project to the timeline projected at origination; (ii) a construction loan administration department independent of the lending function; (iii) third party independent construction loan inspection reports; (iv) monthly interest reserve monitoring reports detailing the balance of the interest reserves approved at origination and the days of interest carry represented by the reserve balances as compared to the then current anticipated time to completion and/or sale of speculative projects; and (v) quarterly commercial real estate construction meetings among senior Company management, which includes monitoring of current and projected real estate market conditions. If a project has not performed as expected, it is not the customary practice of the Company to increase loan funded interest reserves. From time to time the Company may make loans for its own portfolio or through its higher risk loan affiliate, ECV. Such loans, which are made to finance projects (which may also be financed at the Bank level), may have higher risk characteristics than loans made by the Bank, such as lower priority interests and/or higher loan to value ratios. The Company seeks an overall financial return on these transactions commensurate with the risks and structure of each individual loan. Certain transactions may bear current interest at a rate with a significant premium to normal market rates. Other loan transactions may carry a standard rate of current interest, but also earn additional interest based on a percentage of the profits of the underlying project or a fixed accrued rate of interest. The following tables detail activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2015 and 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Income Owner Construction Producing Commercial Occupied Real Estate Mortgage Commercial and Home Other (dollars in thousands) Commercial Real Estate Real Estate Residential Residential Equity Consumer Total Three months ended June 30, 2015 Allowance for credit losses: Balance at beginning of period $ 13,777 $ 11,652 $ 3,127 $ 1,055 $ 16,383 $ 1,509 $ 276 $ 47,779 Loans charged-off (2,307 ) (79 ) - - - - (16 ) (2,402 ) Recoveries of loans previously charged-off 24 18 1 1 9 2 18 73 Net loans charged-off (2,283 ) (61 ) 1 1 9 2 2 (2,329 ) Provision for credit losses 1,417 820 (15 ) 26 1,241 (15 ) (3 ) 3,471 Ending balance $ 12,911 $ 12,411 $ 3,113 $ 1,082 $ 17,633 $ 1,496 $ 275 $ 48,921 Six months ended June 30, 2015 Allowance for credit losses: Balance at beginning of period $ 13,222 $ 11,442 $ 2,954 $ 1,259 $ 15,625 $ 1,469 $ 104 $ 46,075 Loans charged-off (3,305 ) (397 ) - - - (419 ) (87 ) (4,208 ) Recoveries of loans previously charged-off 75 18 2 3 104 4 67 273 Net loans charged-off (3,230 ) (379 ) 2 3 104 (415 ) (20 ) (3,935 ) Provision for credit losses 2,919 1,348 157 (180 ) 1,904 442 191 6,781 Ending balance $ 12,911 $ 12,411 $ 3,113 $ 1,082 $ 17,633 $ 1,496 $ 275 $ 48,921 For the period ended June 30, 2015 Allowance for credit losses: Individually evaluated for impairment $ 4,066 $ 491 $ 386 $ - $ 803 $ 293 $ - $ 6,039 Collectively evaluated for impairment 8,845 11,920 2,727 1,082 16,830 1,203 275 42,882 Ending balance $ 12,911 $ 12,411 $ 3,113 $ 1,082 $ 17,633 $ 1,496 $ 275 $ 48,921 Three months ended June 30, 2014 Allowance for credit losses: Balance at beginning of period $ 11,420 $ 10,590 $ 3,195 $ 754 $ 14,179 $ 1,507 $ 373 $ 42,018 Loans charged-off (1,378 ) - - (28 ) (225 ) - (59 ) (1,690 ) Recoveries of loans previously charged-off 72 4 7 - 6 1 - 90 Net loans charged-off (1,306 ) 4 7 (28 ) (219 ) 1 (59 ) (1,600 ) Provision for credit losses 1,299 151 71 232 1,527 (177 ) 31 3,134 Ending balance $ 11,413 $ 10,745 $ 3,273 $ 958 $ 15,487 $ 1,331 $ 345 $ 43,552 Six months ended June 30, 2014 Allowance for credit losses: Balance at beginning of period $ 9,780 $ 10,359 $ 3,899 $ 944 $ 13,934 $ 1,871 $ 134 $ 40,921 Loans charged-off (1,651 ) - (35 ) (90 ) (806 ) (149 ) (84 ) (2,815 ) Recoveries of loans previously charged-off 283 4 7 - 71 6 7 378 Net loans charged-off (1,368 ) 4 (28 ) (90 ) (735 ) (143 ) (77 ) (2,437 ) Provision for credit losses 3,001 382 (598 ) 104 2,288 (397 ) 288 5,068 Ending balance $ 11,413 $ 10,745 $ 3,273 $ 958 $ 15,487 $ 1,331 $ 345 $ 43,552 For the Period Ended June 30, 2014 Allowance for credit losses: Individually evaluated for impairment $ 3,501 $ 732 $ 1,102 $ - $ 1,605 $ 208 $ - $ 7,148 Collectively evaluated for impairment 7,912 10,013 2,171 958 13,882 1,123 345 36,404 Ending balance $ 11,413 $ 10,745 $ 3,273 $ 958 $ 15,487 $ 1,331 $ 345 $ 43,552 The Company’s recorded investments in loans as of June 30, 2015, December 31, 2014 and June 30, 2014 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology was as follows: Income Producing Owner occupied Real Estate Construction Commercial Commercial Commercial Mortgage and Home Other (dollars in thousands) Commercial Real Estate Real Estate Residential Residential Equity Consumer Total June 30, 2015 Recorded investment in loans: Individually evaluated for impairment $ 17,966 $ 2,371 $ 1,827 $ - $ 17,891 $ 887 $ 18 $ 40,960 Collectively evaluated for impairment 942,540 1,861,212 496,007 149,842 937,860 117,657 4,819 4,509,937 Ending balance $ 960,506 $ 1,863,583 $ 497,834 $ 149,842 $ 955,751 $ 118,544 $ 4,837 $ 4,550,897 December 31, 2014 Recorded investment in loans: Individually evaluated for impairment $ 17,612 $ 5,109 $ 6,891 $ - $ 14,241 $ 1,398 $ 59 $ 45,310 Collectively evaluated for impairment 898,614 1,698,063 454,690 148,018 837,223 121,138 109,343 4,267,089 Ending balance $ 916,226 $ 1,703,172 $ 461,581 $ 148,018 $ 851,464 $ 122,536 $ 109,402 $ 4,312,399 June 30, 2014 Recorded investment in loans: Individually evaluated for impairment $ 17,405 $ 2,913 $ 3,230 $ - $ 12,882 $ 561 $ - $ 36,991 Collectively evaluated for impairment 709,206 1,299,566 326,843 123,587 667,750 108,370 7,116 3,242,438 Ending balance $ 726,611 $ 1,302,479 $ 330,073 $ 123,587 $ 680,632 $ 108,931 $ 7,116 $ 3,279,429 At June 30, 2015, the nonperforming loans acquired have a carrying value of $1.9 million and an unpaid principal balance of $3.0 million, respectively, and were evaluated separately in accordance with ASC Topic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality various impaired loans were recorded at estimated fair value with any excess being charged-off or treated as a non-accretable discount. Subsequent downward adjustments to the valuation of impaired loans acquired will result in additional loan loss provisions and related allowance for credit losses. Subsequent upward adjustments to the valuation of impaired loans acquired will result in accretable discount. No adjustments have been made to the fair value amounts of impaired loans subsequent to the allowable period of adjustment from the date of acquisition. Credit Quality Indicators The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company's primary credit quality indicators are to use an internal credit risk rating system that categorizes loans into pass, watch, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk rated and monitored collectively. These are typically loans to individuals in the classes which comprise the consumer portfolio segment. The following are the definitions of the Company's credit quality indicators: Pass: Loans in all classes that comprise the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. Watch: Loan paying as agreed with generally acceptable asset quality; however the obligor’s performance has not met expectations. Balance sheet and/or income statement has shown deterioration to the point that the obligor could not sustain any further setbacks. Credit is expected to be strengthened through improved obligor performance and/or additional collateral within a reasonable period of time. Special Mention: Loans in the classes that comprise the commercial portfolio segment that have potential weaknesses that deserve management's close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan. The special mention credit quality indicator is not used for classes of loans that comprise the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans that are considered special mention. Classified: Classified (a) Substandard Classified (b) Doubtful The Company's credit quality indicators are updated generally on a quarterly basis, but no less frequently than annually. The following table presents by class and by credit quality indicator, the recorded investment in the Company's loans and leases as of June 30, 2015, December 31, 2014 and June 30, 2014. Watch and Total (dollars in thousands) Pass Special Mention Substandard Doubtful Loans June 30, 2015 Commercial $ 920,429 $ 22,111 $ 17,966 $ - $ 960,506 Income producing - commercial real estate 1,837,021 24,191 2,371 - 1,863,583 Owner occupied - commercial real estate 487,922 8,085 1,827 - 497,834 Real estate mortgage – residential 149,101 741 - - 149,842 Construction - commercial and residential 937,069 791 17,891 - 955,751 Home equity 115,945 1,712 887 - 118,544 Other consumer 4,819 - 18 - 4,837 Total $ 4,452,306 $ 57,631 $ 40,960 $ - $ 4,550,897 December 31, 2014 Commercial $ 875,102 $ 23,512 $ 17,612 $ - $ 916,226 Income producing - commercial real estate 1,679,101 18,962 5,109 - 1,703,172 Owner occupied - commercial real estate 445,013 9,677 6,891 - 461,581 Real estate mortgage – residential 147,262 756 - - 148,018 Construction - commercial and residential 827,503 9,720 14,241 - 851,464 Home equity 119,420 1,718 1,398 - 122,536 Other consumer 109,343 - 59 - 109,402 Total $ 4,202,744 $ 64,345 $ 45,310 $ - $ 4,312,399 June 30, 2014 Commercial $ 695,191 $ 14,015 $ 17,405 $ - $ 726,611 Investment - commercial real estate 1,286,730 12,836 2,913 - 1,302,479 Owner occupied - commercial real estate 313,523 13,320 3,230 - 330,073 Real estate mortgage – residential 122,681 906 - - 123,587 Construction - commercial and residential 654,631 13,119 12,882 - 680,632 Home equity 106,468 1,902 561 - 108,931 Other consumer 7,116 - - - 7,116 Total $ 3,186,340 $ 56,098 $ 36,991 $ - $ 3,279,429 Nonaccrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table presents by class of loan, information related to nonaccrual loans as of the periods ended June 30, 2015, December 31, 2014 and June 30, 2014. (dollars in thousands) June 30, 2015 December 31, 2014 June 30, 2014 Commercial $ 9,684 $ 12,975 $ 8,671 Income producing - commercial real estate 2,062 2,645 2,676 Owner occupied - commercial real estate 1,297 1,324 3,230 Real estate mortgage - residential 338 346 650 Construction - commercial and residential 585 3,697 6,877 Home equity 887 1,398 403 Other consumer 18 58 - Total nonaccrual loans (1)(2) $ 14,871 $ 22,443 $ 22,507 (1) Excludes troubled debt restructurings (“TDRs”) that were performing under their restructured terms totaling $13.7 million at June 30, 2015, $13.5 million at December 31, 2014 and $7.9 million at June 30, 2014. (2) Gross interest income of $504 thousand would have been recorded in 2015 if nonaccrual loans shown above had been current and in accordance with their original terms, while interest actually recorded on such loans was $9 thousand. See Note 1 to the consolidated financial statements for a description of the Company’s policy for placing loans on nonaccrual status. The following table presents by class, an aging analysis and the recorded investments in loans past due as of June 30, 2015 and December 31, 2014. Loans Loans Loans Total Recorded 30-59 Days 60-89 Days 90 Days or Total Past Current Investment in (dollars in thousands) Past Due Past Due More Past Due Due Loans Loans Loans June 30, 2015 Commercial $ 2,056 $ 983 $ 9,684 $ 12,723 $ 947,783 $ 960,506 Income producing - commercial real estate 1,669 6,231 2,062 9,962 1,853,621 1,863,583 Owner occupied - commercial real estate 531 - 1,297 1,828 496,006 497,834 Real estate mortgage – residential 1,625 - 338 1,963 147,879 149,842 Construction - commercial and residential 6,805 - 585 7,390 948,361 955,751 Home equity - 641 887 1,528 117,016 118,544 Other consumer 113 55 18 186 4,651 4,837 Total $ 12,799 $ 7,910 $ 14,871 $ 35,580 $ 4,515,317 $ 4,550,897 December 31, 2014 Commercial $ 1,505 $ 4,032 $ 12,975 $ 18,512 $ 897,714 $ 916,226 Income producing - commercial real estate 1,825 5,376 2,645 9,846 1,693,326 1,703,172 Owner occupied - commercial real estate 1,089 214 1,324 2,627 458,954 461,581 Real estate mortgage – residential - - 346 346 147,672 148,018 Construction - commercial and residential - - 3,697 3,697 847,767 851,464 Home equity - 1,365 1,398 2,763 119,773 122,536 Other consumer 284 81 58 423 108,979 109,402 Total $ 4,703 $ 11,068 $ 22,443 $ 38,214 $ 4,274,185 $ 4,312,399 Impaired Loans Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. The following table presents, by class of loan, information related to impaired loans for the periods ended June 30, 2015, December 31, 2014 and June 30, 2014. Unpaid Recorded Recorded Total Average Recorded Investment Interest Income Recognized Principal With No With Recorded Related Quarter Year Quarter Year (dollars in thousands) Balance Allowance Allowance Investment Allowance To Date To Date To Date To Date June 30, 2015 Commercial $ 12,948 $ 1,558 $ 8,397 $ 9,955 $ 4,066 $ 10,606 $ 11,396 $ 9 $ 9 Income producing - commercial real estate 10,545 8,712 1,140 9,852 491 9,914 10,107 36 71 Owner occupied - commercial real estate 1,831 1,002 829 1,831 386 1,849 1,862 - - Real estate mortgage – residential 338 338 - 338 - 340 342 - - Construction - commercial and residential 5,641 - 5,641 5,641 803 7,156 7,699 99 198 Home equity 887 117 770 887 293 888 1,058 - - Other consumer 18 18 - 18 - 14 29 1 1 Total $ 32,208 $ 11,745 $ 16,777 $ 28,522 $ 6,039 $ 30,767 $ 32,493 $ 145 $ 279 December 31, 2014 Commercial $ 14,075 $ 1,603 $ 11,372 $ 12,975 $ 5,334 $ 14,203 $ 13,681 $ 20 $ 251 Income producing - commercial real estate 10,869 8,952 1,542 10,494 751 8,202 7,021 196 203 Owner occupied - commercial real estate 1,889 1,038 851 1,889 577 2,696 3,986 - 6 Real estate mortgage – residential 346 346 - 346 - 348 529 - - Construction - commercial and residential 8,785 8,176 609 8,785 927 10,113 10,967 436 1,147 Home equity 1,398 339 1,059 1,398 430 993 747 32 36 Other consumer 58 - 58 58 45 29 30 7 7 Total $ 37,420 $ 20,454 $ 15,491 $ 35,945 $ 8,064 $ 36,584 $ 36,961 $ 691 $ 1,650 June 30, 2014 Commercial $ 9,771 $ 348 $ 8,323 $ 8,671 $ 3,501 $ 8,873 $ 11,032 $ 3 $ 3 Investment - commercial real estate 6,416 1,512 4,529 6,041 732 5,841 5,861 43 78 Owner occupied - commercial 3,230 99 3,131 3,230 1,102 5,277 5,335 - - Real estate mortgage – residential 650 650 - 650 - 711 769 - - Construction - commercial and residential 12,516 4,347 7,071 11,418 1,605 11,822 12,192 49 552 Home equity 403 125 278 403 208 501 541 - - Other consumer - - - - - 30 43 - - Total $ 32,986 $ 7,081 $ 23,332 $ 30,413 $ 7,148 $ 33,055 $ 35,773 $ 95 $ 633 Modifications A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company offers various types of concessions when modifying a loan. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Commercial mortgage and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Construction loans modified in a TDR may also involve extending the interest-only payment period. Loans modified in a TDR for the Company may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired consumer and commercial loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. The following table presents by class, the recorded investment of loans modified in TDRs held by the Company during the periods ended June 30, 2015 and December 31, 2014. TDRs Performing TDRs Not Performing (dollars in thousands) Number of to Modified Terms to Modified Terms Total June 30, 2015 Commercial 2 $ 272 $ 219 $ 491 Income producing - commercial real estate 3 7,790 - 7,790 Owner occupied - commercial real estate 1 534 - 534 Construction - commercial and residential 1 5,056 - 5,056 Total 7 $ 13,652 $ 219 $ 13,871 December 31, 2014 Commercial 1 $ - $ 227 $ 227 Income producing - commercial real estate 3 7,849 - 7,849 Owner occupied - commercial real estate 1 565 - 565 Construction - commercial and residential 1 5,088 - 5,088 Total 6 $ 13,502 $ 227 $ 13,729 There were no TDR defaults during the six months ended June 30, 2015 and 2014. A default is considered to have occurred once the TDR is past due 90 days or more, or it has been placed on nonaccrual. Commercial and consumer loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. At June 30, 2015 there were seven TDRs, as compared to six TDRs at December 31, 2014. There was one loan modified in a TDR during the three months ended June 30, 2015. For the three and six months ended June 30, 2014, there were no loans modified in a TDR. |
Note 6. Interest Rate Swap Deri
Note 6. Interest Rate Swap Derivatives | 6 Months Ended |
Jun. 30, 2015 | |
Interest Rate Swap [Member] | |
Note 6. Interest Rate Swap Derivatives [Line Items] | |
Discussion of Hybrid Instruments and Embedded Derivatives [Text Block] | Note 6. Interest Rate Swap Derivatives The Company uses interest rate swap agreements to assist in its interest rate risk management. The notional amounts of the interest rate swaps do not represent amounts exchanged by the counterparties, but rather, the notional amount is used to determine, along with other terms of the derivative, the amounts to be exchanged between the counterparties. The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from counterparty in exchange for the Company making fixed payments. As of June 30, 2015, the Company had three forward starting interest rate swap transactions outstanding that had a notional amount of $250 million associated with the Company’s variable rate deposits. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The Company did not recognize any hedge ineffectiveness in earnings during the period ended June 30, 2015. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 10 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments) and as such existing hedges are deemed forward starting swaps and no net settlements of cash flows is occurring. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income/expense as interest payments are made/received on the Company’s variable-rate assets/liabilities. During the quarter ended June 30, 2015, the Company did not have any reclassifications to interest expense. During the next twelve months, the Company estimates (based on existing interest rates) that $623 thousand will be reclassified as an increase in interest expense. The Company is exposed to credit risk in the event of nonperformance by the interest rate swap counterparty. The Company minimizes this risk by entering into derivative contracts with only large, stable financial institutions, and the Company has not experienced, and does not expect, any losses from counterparty nonperformance on the interest rate swaps. The Company monitors counterparty risk in accordance with the provisions of ASC Topic 815, "Derivatives and Hedging." The table below identifies the balance sheet category and fair values of the Company’s derivative instruments designed as cash flow hedges as of June 30, 2015. There were no derivative instruments as of December 31, 2014 or June 30, 2014. Swap Notional Balance Sheet June 30, 2015 Number Amount Fair Value Category Receive Rate Pay Rate Maturity (dollars in thousands) Interest rate swap (1 ) $ 75,000 $ 521 Other Assets 1 month USD-LIBOR-BBA w/ -1 day lookback +10 basis points 1.71 % March 31, 2020 Interest rate swap (2 ) 100,000 1,302 Other Assets Federal Funds Effective Rate +10 basis points 1.74 % April 15, 2021 Interest rate swap (3 ) 75,000 1,358 Other Assets 1 month USD-LIBOR-BBA w/ -1 day lookback +10 basis points 1.92 % March 31, 2022 The table below presents the pre-tax net gains (losses) of the Company’s cash flow hedges for the period ended June 30, 2015. Since all transactions are forward starting swaps all amounts are balance sheet related (OCI) and no amounts were recorded in the income statement. Six Months Ended June 30, 2015 Effective Portion Ineffective Portion Reclassified from AOCI Recognized in Income Amount of into income on Derivatives Swap Pre-tax gain (loss) Amount of Amount of Number Recognized in OCI Category Gain (Loss) Category Gain (Loss) (dollars in thousands) Interest rate swap (1 ) $ 521 $ - $ - Interest rate swap (2 ) 1,302 - - Interest rate swap (3 ) 1,358 - - |
Note 7 - Other Real Estate Owne
Note 7 - Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Real Estate Owned [Text Block] | Note 7 . Other Real Estate Owned The activity within Other Real Estate Owned (“OREO”) for the three and six months ended June 30, 2015 and 2014 is presented in the table below. For the three and six months ended June 30, 2015, proceeds on sales of OREO were $833 thousand and $986 thousand, respectively. The net losses on sales were $148 thousand and $165 thousand for the three and six months ended June 30, 2015. Three Months Ended Six Months Ended (dollars in thousands) June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Balance beginning of period $ 12,338 $ 8,809 $ 13,224 $ 9,225 Real estate acquired from borrowers 1,500 85 1,500 330 Valuation allowance - (51 ) (750 ) (505 ) Properties sold (3,123 ) - (3,259 ) (207 ) Balance end of period $ 10,715 $ 8,843 $ 10,715 $ 8,843 |
Note 8 - Net Income Per Common
Note 8 - Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 8 . Net Income per Common Share The calculation of net income per common share for the six months ended June 30, 2015 and 2014 was as follows. Six Months Ended June 30, Three Months Ended June 30, (dollars and shares in thousands, except per share data) 2015 2014 2015 2014 Basic: Net income available to common shareholders $ 39,997 $ 25,160 $ 20,759 $ 12,802 Average common shares outstanding 32,231 25,955 33,367 25,982 Basic net income per common share $ 1.24 $ 0.97 $ 0.62 $ 0.49 Diluted: Net income available to common shareholders $ 39,997 $ 25,160 $ 20,759 $ 12,802 Average common shares outstanding 32,231 25,955 33,367 25,982 Adjustment for common share equivalents 664 645 631 647 Average common shares outstanding-diluted 32,895 26,600 33,998 26,629 Diluted net income per common share $ 1.22 $ 0.95 $ 0.61 $ 0.48 Anti-dilutive shares 13 21 13 21 |
Note 9 - Stock-Based Compensati
Note 9 - Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9 . Stock- Based Compensation The Company maintains the 1998 Stock Option Plan (“1998 Plan”), the 2006 Stock Plan (“2006 Plan”) and the 2011 Employee Stock Purchase Plan (“2011 ESPP”). In connection with the acquisition of Fidelity & Trust Financial Corporation (“Fidelity”), the Company assumed the Fidelity 2004 Long Term Incentive Plan and the 2005 Long Term Incentive Plan (the “Fidelity Plans”). In connection with the acquisition of Virginia Heritage, the Company assumed the Virginia Heritage 2006 Stock Option Plan and the 2010 Long Term Incentive Plan (the “Virginia Heritage Plans”). No additional options may be granted under the 1998 Plan, the Fidelity Plans or the Virginia Heritage Plans. The 2006 Plan provides for the issuance of awards of incentive stock options, non-qualifying stock options, restricted stock and stock appreciation rights to selected key employees and members of the Board. As amended, 1,996,500 shares of common stock are subject to issuance pursuant to awards under the 2006 Plan. Stock options and restricted stock awards are made with an exercise price equal to the average of the high and low price of the Company’s shares at the date of grant. For awards that are service based, compensation expense is being recognized over the service (vesting) period based on fair value, which for stock option grants is computed using the Black-Scholes model, and for restricted stock awards is based on the average of the high and low stock price of the Company’s shares on the date of grant. For awards that are performance-based, compensation expense is recorded based on the probability of achievement of the goals underlying the grant. No performance-based awards are outstanding at June 30, 2015. In February 2015, the Company awarded 77,370 shares of restricted stock to senior officers, directors and employees. The shares vest in three substantially equal installments beginning on the first anniversary of the date of grant. In March 2015, the Company awarded 700 shares of restricted stock to an employee. The shares vest in five substantially equal installments beginning on the first anniversary of the date of grant. Below is a summary of changes in shares pursuant to our equity compensation plans for the six months ended June 30, 2015 and 2014. The information excludes restricted stock units and awards. Six Months Ended June 30, 2015 2014 Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Beginning balance 759,683 $ 11.36 503,834 $ 10.41 Issued - - 21,000 32.77 Exercised (369,952 ) 12.70 (24,897 ) 12.25 Forfeited (1,650 ) 15.48 (110 ) 5.76 Expired (8,007 ) 16.90 (408 ) 9.37 Ending balance 380,074 $ 9.92 499,419 $ 11.26 The following summarizes information about stock options outstanding at June 30, 2015. The information excludes restricted stock units and awards. Outstanding: Stock Options Weighted-Average Weighted-Average Remaining Range of Exercise Prices Outstanding Contractual Life $ 5.76 $9.21 223,329 $ 5.76 3.53 $ 9.22 $15.47 110,305 12.38 2.46 $ 15.48 $22.66 22,706 19.07 7.99 $ 22.67 $32.36 23,734 28.82 5.96 380,074 $ 9.92 3.64 Exercisable: Stock Options Weighted-Average Range of Exercise Prices Exercisable Exercise Price $ 5.76 $9.21 166,419 $ 5.76 $ 9.22 $15.47 103,305 12.48 $ 15.48 $22.66 19,076 19.28 $ 22.67 $32.36 11,334 26.27 300,134 $ 9.71 The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model with the assumptions as shown in the table below used for grants during the years ended December 31, 2014 and 2013. There were no grants of stock options for the six months ended June 30, 2015. Six Months Ended Years Ended December 31, June 30, 2015 2014 2013 Expected volatility N/A 34.25 % 34.12 % Weighted-Average volatility N/A 34.25 % 34.12 % Expected dividends 0.0 % 0.0 % 0.0 % Expected term (in years) N/A 9.4 7.5 Risk-free rate N/A 2.26 % 1.31 % Weighted-average fair value (grant date) N/A $ 13.49 $ 7.83 The expected lives are based on the “simplified” method allowed by ASC Topic 718 “Compensation ,” The total intrinsic value of outstanding stock options and outstanding exercisable stock options was $10.3 million at June 30, 2015. The total intrinsic value of stock options exercised during the six months ended June 30, 2015 and 2014 was $8.2 million and $538 thousand, respectively. The total fair value of stock options vested was $82 thousand and $125 thousand for the six months ended June 30, 2015 and 2014, respectively. Unrecognized stock-based compensation expense related to stock options totaled $291 thousand at June 30, 2015. At such date, the weighted-average period over which this unrecognized stock option expense is expected to be recognized was 3.30 years. The Company has unvested restricted stock award grants of 392,267 shares under the 2006 Plan at June 30, 2015. Unrecognized stock based compensation expense related to restricted stock awards totaled $8.1 million at June 30, 2015. At such date, the weighted-average period over which this unrecognized expense was expected to be recognized was 1.88 years. The following table summarizes the unvested restricted stock awards at June 30, 2015 and 2014. Six Months Ended June 30, 2015 2014 Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Unvested at beginning 509,336 $ 21.58 614,580 $ 18.71 Issued 78,070 36.06 78,947 33.24 Forfeited (1,209 ) 28.67 (832 ) 23.59 Vested (193,930 ) 20.66 (184,921 ) 17.54 Unvested at end 392,267 $ 24.89 507,774 $ 21.39 Approved by shareholders in May 2011, the 2011 ESPP reserved 550,000 shares of common stock (as adjusted for stock dividends) for issuance to employees. Whole shares are sold to participants in the plan at 85% of the lower of the stock price at the beginning or end of each quarterly offering period. The 2011 ESPP is available to all eligible employees who have completed at least one year of continuous employment, work at least 20 hours per week and at least five months a year. Participants may contribute a minimum of $10 per pay period to a maximum of $6,250 per offering period or $25,000 annually (not to exceed more than 10% of compensation per pay period). At June 30, 2015, the 2011 ESPP had 442,379 shares remaining for issuance. Included in salaries and employee benefits the Company recognized $2.4 million and $1.9 million in stock-based compensation expense for the six months ended June 30, 2015 and 2014, respectively. Stock-based compensation expense is recognized ratably over the requisite service period for all awards. |
Note 10 - Other Comprehensive I
Note 10 - Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 10 . Other Comprehensive Income (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2015 Net unrealized loss on securities available-for-sale $ (3,405 ) $ (1,362 ) $ (2,043 ) Net unrealized gain on derivatives 3,181 1,272 1,909 Less: Reclassification adjustment for net gains included in net income - - - Other Comprehensive Loss $ (224 ) $ (90 ) $ (134 ) Three Months Ended June 30, 2014 Net unrealized gain on securities available-for-sale $ 3,900 $ 1,559 $ 2,341 Less: Reclassification adjustment for net gains included in net income (2 ) (1 ) (1 ) Other Comprehensive Income $ 3,898 $ 1,558 $ 2,340 Six Months Ended June 30, 2015 Net unrealized loss on securities available-for-sale $ (187 ) $ (75 ) $ (112 ) Net unrealized gain on derivatives 3,181 1,272 1,909 Less: Reclassification adjustment for net gains included in net income (2,164 ) (866 ) (1,298 ) Other Comprehensive Income $ 830 $ 331 $ 499 Six Months Ended June 30, 2014 Net unrealized gain on securities available-for-sale $ 8,605 $ 3,442 $ 5,163 Less: Reclassification adjustment for net gains included in net income (10 ) (4 ) (6 ) Other Comprehensive Income $ 8,595 $ 3,438 $ 5,157 The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2015 and 2014. Accumulated Other (dollars in thousands) Securities Available For Sale Comprehensive (Loss) Income Three Months Ended June 30, 2015 Balance at Beginning of Period $ 3,280 $ 3,280 Other comprehensive income before reclassifications (134 ) (134 ) Amounts reclassified from accumulated other comprehensive income - - Net other comprehensive income during period (134 ) (134 ) Balance at End of Period $ 3,146 $ 3,146 Three Months Ended June 30, 2014 Balance at Beginning of Period $ (502 ) $ (502 ) Other comprehensive income before reclassifications 2,341 2,341 Amounts reclassified from accumulated other comprehensive income (1 ) (1 ) Net other comprehensive (loss) during period 2,340 2,340 Balance at End of Period $ 1,838 $ 1,838 Six Months Ended June 30, 2015 Balance at Beginning of Period $ 2,647 $ 2,647 Other comprehensive income before reclassifications 1,797 1,797 Amounts reclassified from accumulated other comprehensive income (1,298 ) (1,298 ) Net other comprehensive income during period 499 499 Balance at End of Period $ 3,146 $ 3,146 Six Months Ended June 30, 2014 Balance at Beginning of Period $ (3,319 ) $ (3,319 ) Other comprehensive income before reclassifications 5,163 5,163 Amounts reclassified from accumulated other comprehensive income (6 ) (6 ) Net other comprehensive (loss) during period 5,157 5,157 Balance at End of Period $ 1,838 $ 1,838 The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014. Amount Reclassified from Affected Line Item in Details about Accumulated Other Accumulated Other the Statement Where Comprehensive Income Components (dollars in thousands) Comprehensive (Loss) Income Net Income is Presented Three Months Ended June 30, 2015 2014 Realized gain on sale of investment securities $ - $ 2 Gain on sale of investment securities - (1 ) Tax Expense Total Reclassifications for the Period $ - $ 1 Net of Tax Amount Reclassified from Affected Line Item in Details about Accumulated Other Accumulated Other the Statement Where Comprehensive Income Components (dollars in thousands) Comprehensive (Loss) Income Net Income is Presented Six Months Ended June 30, 2015 2014 Realized gain on sale of investment securities $ 2,164 $ 10 Gain on sale of investment securities (866 ) (4 ) Tax Expense Total Reclassifications for the Period $ 1,298 $ 6 Net of Tax |
Note 11 - Fair Value Measuremen
Note 11 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | Note 11 . Fair Value Measurements The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820, “Fair Value Measurements and Disclosures,” Level 1 Quoted prices in active exchange markets for identical assets or liabilities; also includes certain U.S. Treasury and other U.S. Government and agency securities actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency securities, corporate debt securities, derivative instruments, and residential mortgage loans held for sale. Level 3 Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for single dealer nonbinding quotes not corroborated by observable market data. This category generally includes certain private equity investments, retained interests from securitizations, and certain collateralized debt obligations. Assets and Liabilities Recorded as Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014. (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total (Fair Value) June 30, 2015 Investment securities available for sale: U. S. Government agency securities $ - $ 59,703 $ - $ 59,703 Residential mortgage backed securities - 255,663 - 255,663 Municipal bonds - 92,838 - 92,838 Corporate bonds - 15,041 - 15,041 Other equity investments 245 - 219 464 Loans held for sale - 132,683 - 132,683 Mortgage banking derivatives - - 165 165 Interest rate swap derivatives - 3,181 - 3,181 Total assets measured at fair value on a recurring basis as of June 30, 2015 $ 245 $ 559,109 $ 384 $ 559,738 (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total (Fair Value) December 31, 2014 Investment securities available for sale: U. S. Government agency securities $ - $ 29,894 $ - $ 29,894 Residential mortgage backed securities - 240,320 - 240,320 Municipal bonds - 111,712 - 111,712 Other equity investments 198 - 219 417 Loans held for sale - 44,317 - 44,317 Mortgage banking derivatives - - 146 146 Total assets measured at fair value on a recurring basis as of December 31, 2014 $ 198 $ 426,243 $ 365 $ 426,806 Investment Securities Available-for-Sale Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include U.S. Government agency debt securities, mortgage backed securities issued by government sponsored entities and municipal bonds. Securities classified as Level 3 include securities in less liquid markets, the carrying amount approximate the fair value. Loans held for sale The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3): Other Equity Derivative (dollars in thousands) Investments Assets/(Liabilities) Total Assets: Beginning balance at December 31, 2014 $ 219 $ 146 $ 365 Realized gain (loss) included in earnings - net derivatives - 19 19 Principal redemption - - - Ending balance at June 30, 2015 $ 219 $ 165 $ 384 Liabilities: Beginning balance at December 31, 2014 $ - $ (250 ) $ (250 ) Realized gain (loss) included in earnings - net derivatives - 235 235 Principal redemption - - - Ending balance at June 30, 2015 $ - $ (15 ) $ (15 ) Other Equity Derivative (dollars in thousands) Investments Assets/(Liabilities) Total Assets: Beginning balance at December 31, 2013 $ 219 $ - $ 219 Realized gain (loss) included in earnings - net derivatives - 146 146 Ending balance at December 31, 2014 $ 219 $ 146 $ 365 Liabilities: Beginning balance at December 31, 2013 $ - $ - $ - Realized gain (loss) included in earnings - net derivatives - (250 ) (250 ) Ending balance at December 31, 2014 $ - $ (250 ) $ (250 ) Securities classified as Level 3 include securities in less liquid markets, the carrying amount approximate the fair value. The securities consist of equity investments in the form of common stock of two local banking companies which are not publicly traded. The Corporation relies on a third-party pricing service to value its derivative financial assets and liabilities. The external valuation model to estimate the fair value of its interest rate lock commitments to originate residential mortgage loans held for sale, which includes grouping the interest rate lock commitments by interest rate and terms, applying an estimated pull-through rate based on historical experience, and then multiplying by quoted investor prices determined to be reasonably applicable to the loan commitment groups based on interest rate, terms, and rate lock expiration dates of the loan commitment groups. The Corporation also relies on an external valuation model to estimate the fair value of its forward commitments to sell residential mortgage loans (i.e., an estimate of what the Corporation would receive or pay to terminate the forward delivery contract based on market prices for similar financial instruments), which includes matching specific terms and maturities of the forward commitments against applicable investor pricing available. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company measures certain assets at fair value on a nonrecurring basis and the following is a general description of the methods used to value such assets. Impaired loans Other real estate owned (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total (Fair Value) June 30, 2015 Impaired loans: Commercial $ - $ 1,675 $ 4,214 $ 5,889 Income producing - commercial real estate - 1,263 8,098 9,361 Owner occupied - commercial real estate - 725 720 1,445 Real estate mortgage - residential - - 338 338 Construction - commercial and residential - 35 4,803 4,838 Home equity - - 594 594 Other consumer - - 18 18 Other real estate owned - 10,715 - 10,715 Total assets measured at fair value on a nonrecurring basis as of June 30, 2015 $ - $ 14,413 $ 18,785 $ 33,198 (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total (Fair Value) December 31, 2014 Impaired loans: Commercial $ - $ 781 $ 7,171 $ 7,952 Income producing - commercial real estate - 703 1,199 1,902 Owner occupied - commercial real estate - - 824 824 Real estate mortgage - residential - - 346 346 Construction - commercial and residential - - 3,297 3,297 Home equity - 5 963 968 Other consumer - - 13 13 Other real estate owned - 9,184 4,040 13,224 Total assets measured at fair value on a nonrecurring basis as of December 31, 2014 $ - $ 10,673 $ 17,853 $ 28,526 Loans The Company does not record loans at fair value on a recurring basis; however, from time to time, a loan is considered impaired and an allowance for loan loss is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC Topic 310, “Receivables . ” Fair Value of Financial Instruments The Company discloses fair value information about financial instruments for which it is practicable to estimate the value, whether or not such financial instruments are recognized on the balance sheet. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by quoted market price, if one exists. Quoted market prices, if available, are shown as estimates of fair value. Because no quoted market prices exist for a portion of the Company’s financial instruments, the fair value of such instruments has been derived based on management’s assumptions with respect to future economic conditions, the amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimates. Accordingly, the net realizable value could be materially different from the estimates presented below. In addition, the estimates are only indicative of individual financial instrument values and should not be considered an indication of the fair value of the Company taken as a whole. The following methods and assumptions were used to estimate the fair value of each category of financial instrument for which it is practicable to estimate value: Cash due from banks and federal funds sold: Interest bearing deposits with other banks: Investment securities: upon quoted prices, if available. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Federal Reserve and Federal Home Loan Bank stock: Loans held for sale: Loans: Bank owned life insurance: Annuity investment : Mortgage banking derivatives : Interest rate swap derivatives: Noninterest bearing deposits: Interest bearing deposits: Certificates of deposit: Customer repurchase agreements: Borrowings: Off-balance sheet items: The estimated fair values of the Company’s financial instruments at June 30, 2015 and December 31, 2014 are as follows: Fair Value Measurements Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Carrying Value Fair Value (Level 1) (Level 2) (Level 3) June 30, 2015 Assets Cash and due from banks $ 10,284 $ 10,284 $ - $ 10,284 $ - Federal funds sold 6,276 6,276 - 6,276 - Interest bearing deposits with other banks 380,336 380,336 - 380,336 - Investment securities 423,709 423,709 245 423,245 219 Federal Reserve and Federal Home Loan Bank stock 16,828 16,828 - 16,828 - Loans held for sale 132,683 132,683 - 132,683 - Loans 4,550,897 4,557,057 - 3,698 4,553,359 Bank owned life insurance 57,889 57,889 - 57,889 - Annuity investment 12,146 12,146 - 12,146 - Mortgage banking derivatives 165 165 - - 165 Interst rate swap derivatives 3,181 3,181 - 3,181 - Liabilities Noninterest bearing deposits 1,370,590 1,370,590 - 1,370,590 - Interest bearing deposits 2,659,719 3,454,590 - 3,454,590 - Certificates of deposit 795,124 794,871 - 794,871 - Customer repurchase agreements 53,394 53,394 - 53,394 - Borrowings 127,444 127,476 - 127,476 - Mortgage banking derivatives 15 15 - - 15 December 31, 2014 Assets Cash and due from banks $ 9,097 $ 9,097 $ - $ 9,097 $ - Federal funds sold 3,516 3,516 - 3,516 - Interest bearing deposits with other banks 243,412 243,412 - 243,412 - Investment securities 382,343 382,343 198 381,926 219 Federal Reserve and Federal Home Loan Bank stock 22,560 22,560 - 22,560 - Loans held for sale 44,317 44,669 - 44,669 - Loans 4,312,399 4,314,618 - 1,489 4,313,129 Bank owned life insurance 56,594 56,594 - 56,594 - Annuity investment 11,277 11,277 - 11,277 - Mortgage banking derivatives 146 146 - - 146 Liabilities Noninterest bearing deposits 1,175,799 1,175,799 - 1,175,799 - Interest bearing deposits 2,446,228 3,134,295 - 3,134,295 - Certificates of deposit 688,741 688,067 - 688,067 - Customer repurchase agreements 61,120 61,120 - 61,120 - Borrowings 280,420 281,958 - 281,958 - Mortgage banking derivatives 250 250 - - 250 |
Note 12 - Supplemental Executiv
Note 12 - Supplemental Executive Retirement Plan | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 12 . Supplemental Executive Retirement Plan The Bank has entered into Supplemental Executive Retirement and Death Benefit Agreements (the “SERP Agreements”) with certain of the Bank’s executive officers, which upon the executive’s retirement, will provide for a stated monthly payment for such executive’s lifetime, subject to certain death benefits described below. The retirement benefit is computed as a percentage of each executive’s projected average base salary over the five years preceding retirement, assuming retirement at age 67. The SERP Agreements provide that (a) the benefits vest ratably over six years of service to the Bank, with the executive receiving credit for years of service prior to entering into the SERP Agreement, (b) death, disability and change-in-control shall result in immediate vesting, and (c) the monthly amount will be reduced if retirement occurs earlier than age 67 for any reason other than death, disability or change-in-control. The SERP Agreements further provide for a death benefit in the event the retired executive dies prior to receiving 180 monthly installments, paid either in a lump sum payment or continued monthly installment payments, such that the executive’s beneficiary has received payment(s) sufficient to equate to a cumulative 180 monthly installments. The SERP Agreements are unfunded arrangements maintained primarily to provide supplemental retirement benefits and comply with Section 409A of the Internal Revenue Code. The Bank financed the retirement benefits by purchasing fixed annuity contracts with four insurance carriers totaling $11.4 million that have been designed to provide a future source of funds for the lifetime retirement benefits of the SERP Agreements. The primary impetus for utilizing fixed annuities is a substantial savings in compensation expenses for the Bank as opposed to a traditional SERP Agreement. The cash surrender value of the annuity contracts was $12.1 million at June 30, 2015 and is included in other assets on the consolidated balance sheet. For the three and six months ended June 30, 2015, the Company recorded benefit expense accruals of $255 thousand and $509 thousand for this post retirement benefit. Upon death of an executive, the annuity contract related to such executive terminates. The Bank has purchased additional bank owned life insurance contracts, which would effectively fund payments (up to a 15 year certain amount) to the executives’ named beneficiaries. |
Note 13. Subsequent Event
Note 13. Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 13 . Subsequent Event |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Business Combinations Policy [Policy Text Block] | Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, “Business Combinations.” On October 31, 2014, the Company completed its acquisition of Virginia Heritage Bank (“Virginia Heritage”). The acquisition of Virginia Heritage was effected through the merger (the “Merger”) of Virginia Heritage with and into EagleBank, in accordance with the Agreement and Plan of Reorganization (the “Merger Agreement”) among the Company, EagleBank and Virginia Heritage, dated June 9, 2014. The acquisition added approximately $800 million in loans, $3 million in loans held for sale, $645 million in deposits, and $95 million in borrowings. An identified intangible related to core deposits was recorded for $4.6 million, which is being amortized over its estimated useful life of approximately 6 years and an initial intangible for goodwill was recorded for approximately $102.3 million. Additionally, in connection with the transaction, the Company recorded a fair value credit mark on the loan portfolio for approximately $12.5 million. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold, and interest bearing deposits with other banks which have an original maturity of three months or less. |
Trade and Loan Receivables, Nonmortgage Loans Held-for-sale, Policy [Policy Text Block] | Loans Held for Sale The Company regularly engages in sales of residential mortgage loans and the guaranteed portion of SBA loans originated by the Bank. Loans held for sale are carried at the lower of aggregate cost or fair value. Fair value is derived from secondary market quotations for similar instruments. Gains and losses on sales of these loans are recorded as a component of noninterest income in the consolidated statements of operations. At June 30, 2015, the Company also classified as held for sale $83.4 million of indirect consumer loans acquired in the Merger. Fair value in the case of the indirect consumer loan portfolio was computed at the contract price and terms. The Company’s current practice is to sell residential mortgage loans on a servicing released basis, and, therefore, it has no intangible asset recorded for the value of such servicing as of June 30, 2015, December 31, 2014 and June 30, 2014. The sale of the guaranteed portion of SBA loans on a servicing retained basis gives rise to an Excess Servicing Asset, which is computed on a loan by loan basis with the unamortized amount being included in Intangible assets in the consolidated balance sheets. This Excess Servicing Asset is being amortized on a straight-line basis (with adjustment for prepayments) as an offset to servicing fees collected and is included in Other income in the consolidated statement of operations. The Company enters into commitments to originate residential mortgage loans whereby the interest rate on the loan is determined prior to funding (i.e. interest rate lock commitments). Such interest rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. To protect against the price risk inherent in residential mortgage loan commitments, the Company utilizes both “best efforts” and “mandatory delivery” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Under a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor and the investor commits to a price that it will purchase the loan from the Company if the loan to the underlying borrower closes. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the investor commits to purchase a loan at a price representing a premium on the day the borrower commits to an interest rate with the intent that the buyer/investor has assumed the interest rate risk on the loan. As a result, the Company is not generally exposed to losses on loans sold utilizing best efforts. Nor will it realize gains related to interest rate lock commitments due to changes in interest rates. The market values of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because interest rate lock commitments and best efforts contracts are not actively traded. Because of the high correlation between interest rate lock commitments and best efforts contracts, no gain or loss should occur on the interest rate lock commitments. Under a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay the investor a “pair-off” fee, based on then-current market prices, to compensate the investor for the shortfall. The interest rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. The Company manages the interest rate risk on interest rate lock commitments by entering into forward sale contracts of mortgage backed securities, whereby the Company obtains the right to deliver securities to investors in the future at a specified price. Such contracts are accounted for as derivatives and are recorded at fair value in derivative assets or liabilities, carried on the Consolidated Balance Sheet within Other Assets or Other Liabilities with changes in fair value recorded in other income within the Consolidated Statement of Income. The period of time between issuance of a loan commitment to the customer and closing and sale of the loan to an investor generally ranges from 30 to 90 days under current market conditions. The gross gains on loan sale are recognized based on new loan commitments with adjustment for price and pair-off activity. Commission expenses on loans held for sale are recognized based on loans closed. In circumstances where the Company does not deliver the whole loan to an investor, but rather elects to retain the loan in its portfolio, the loan is transferred from held for sale to loans at fair value at date of transfer. |
Marketable Securities, Policy [Policy Text Block] | Investment Securities The Company has no securities classified as trading, or as held to maturity. Marketable equity securities and debt securities not classified as held to maturity or trading are classified as available-for-sale. Securities available-for-sale are acquired as part of the Company’s asset/liability management strategy and may be sold in response to changes in interest rates, current market conditions, loan demand, changes in prepayment risk and other factors. Securities available-for-sale are carried at fair value, with unrealized gains or losses being reported as accumulated other comprehensive income/(loss), a separate component of shareholders’ equity, net of deferred income tax. Realized gains and losses, using the specific identification method, are included as a separate component of noninterest income in the consolidated statements of operations. Premiums and discounts on investment securities are amortized/accreted to the earlier of call or maturity based on expected lives, which lives are adjusted based on prepayment assumptions and call optionality if any. Declines in the fair value of individual available-for-sale securities below their cost that are other-than-temporary in nature result in write-downs of the individual securities to their fair value. Factors affecting the determination of whether other-than-temporary impairment has occurred include a downgrading of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a change in management’s intent and ability to hold a security for a period of time sufficient to allow for any anticipated recovery in fair value. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) duration and magnitude of the decline in value, (2) the financial condition of the issuer or issuers and (3) structure of the security. The entire amount of an impairment loss is recognized in earnings only when (1) the Company intends to sell the security, or (2) it is more likely than not that the Company will have to sell the security before recovery of its amortized cost basis, or (3) the Company does not expect to recover the entire amortized cost basis of the security. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in shareholders’ equity as comprehensive income, net of deferred taxes. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans Loans are stated at the principal amount outstanding, net of unamortized deferred costs and fees. Interest income on loans is accrued at the contractual rate on the principal amount outstanding. It is the Company’s policy to discontinue the accrual of interest when circumstances indicate that collection is doubtful. Deferred fees and costs are being amortized on the interest method over the term of the loan. Management considers loans impaired when, based on current information, it is probable that the Company will not collect all principal and interest payments according to contractual terms. Loans are evaluated for impairment in accordance with the Company’s portfolio monitoring and ongoing risk assessment procedures. |
Revenue Recognition, Policy [Policy Text Block] | Higher Risk Lending – Revenue Recognition T he Company has occasionally made higher risk acquisition, development, and construction (“ADC”) loans that entail higher risks than ADC loans made following normal underwriting practices (“higher risk loan transactions”). These higher risk loan transactions are currently made through the Company’s subsidiary, ECV. This activity is limited as to individual transaction amount and total exposure amounts, based on capital levels, and is carefully monitored. The loans are carried on the balance sheet at amounts outstanding and meet the loan classification requirements of the Accounting Standard Executive Committee (“AcSEC”) guidance reprinted from the CPA Letter, Special Supplement, dated February 10, 1986 (also referred to as Exhibit 1 to AcSEC Practice Bulletin No. 1). Additional interest earned on these higher risk loan transactions (as defined in the individual loan agreements) is recognized as realized under the provisions contained in AcSEC’s guidance reprinted from the CPA Letter, Special Supplement, dated February 10, 1986 (also referred to as Exhibit 1 to AcSEC Practice Bulletin No.1) and Staff Accounting Bulletin No. 101 (Revenue Recognition in Financial Statements). Certain additional interest is included as a component of noninterest income. ECV had six higher risk lending transactions outstanding as of June 30, 2015, as compared to four higher risk lending transactions outstanding as of December 31, 2014, amounting to $11.8 million and $6.2 million, respectively. |
Financing Receivable, Allowance for Credit Losses, Policy or Methodology Change [Policy Text Block] | Allowance for Credit Losses The allowance for credit losses represents an amount which, in management’s judgment, is adequate to absorb probable losses on loans and other extensions of credit that may become uncollectible. The adequacy of the allowance for credit losses is determined through careful and continuous review and evaluation of the loan portfolio and involves the balancing of a number of factors to establish a prudent level of allowance. Among the factors considered in evaluating the adequacy of the allowance for credit losses are lending risks associated with growth and entry into new markets, loss allocations for specific credits, the level of the allowance to nonperforming loans, historical loss experience, economic conditions, portfolio trends and credit concentrations, changes in the size and character of the loan portfolio, and management’s judgment with respect to current and expected economic conditions and their impact on the existing loan portfolio. Allowances for impaired loans are generally determined based on collateral values. Loans or any portion thereof deemed uncollectible are charged against the allowance, while recoveries are credited to the allowance. Management adjusts the level of the allowance through the provision for credit losses, which is recorded as a current period operating expense. The allowance for credit losses consists of allocated and unallocated components. The components of the allowance for credit losses represent an estimation done pursuant to ASC Topic 450, “Contingencies ,” ASC Topic 310, “Receivables.” Management believes that the allowance for credit losses is adequate; however, determination of the allowance is inherently subjective and requires significant estimates. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. Evaluation of the potential effects of these factors on estimated losses involves a high degree of uncertainty, including the strength and timing of economic cycles and concerns over the effects of a prolonged economic downturn in the current cycle. In addition, various regulatory agencies, as an integral part of their examination process, and independent consultants engaged by the Bank, periodically review the Bank’s loan portfolio and allowance for credit losses. Such review may result in recognition of additions to the allowance based on their judgments of information available to them at the time of their examination. |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization computed using the straight-line method for financial reporting purposes. Premises and equipment are depreciated over the useful lives of the assets, which generally range from five to seven years for furniture, fixtures and equipment, to three to five years for computer software and hardware, and to ten to forty years for buildings and building improvements. Leasehold improvements are amortized over the terms of the respective leases, which may include renewal options where management has the positive intent to exercise such options, or the estimated useful lives of the improvements, whichever is shorter. The costs of major renewals and betterments are capitalized, while the costs of ordinary maintenance and repairs are expensed as incurred. These costs are included as a component of premises and equipment expenses on the consolidated statements of operations. |
Real Estate, Policy [Policy Text Block] | Other Real Estate Owned (OREO) Assets acquired through loan foreclosure are held for sale and are recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. The new basis is supported by appraisals that are no more than twelve months old. Costs after acquisition are generally expensed. If the fair value of the asset declines, a write-down is recorded through noninterest expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in market conditions or appraised values. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles are amortized over their estimated useful lives and subject to periodic impairment testing. Intangible assets (other than goodwill) are amortized to expense using accelerated or straight-line methods over their respective estimated useful lives. Goodwill and other intangibles are subject to impairment testing at the reporting unit level, which must be conducted at least annually. The Company performs impairment testing during the fourth quarter of each year or when events or changes in circumstances indicate the assets might be impaired. The Company performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing updated qualitative factors, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it does not have to perform the two-step goodwill impairment test. Determining the fair value of a reporting unit under the first step of the goodwill impairment test and determining the fair value of individual assets and liabilities of a reporting unit under the second step of the goodwill impairment test are judgmental and often involve the use of significant estimates and assumptions. Similarly, estimates and assumptions are used in determining the fair value of other intangible assets. Estimates of fair value are primarily determined using discounted cash flows, market comparisons and recent transactions. These approaches use significant estimates and assumptions including projected future cash flows, discount rates reflecting the market rate of return, projected growth rates and determination and evaluation of appropriate market comparables. Based on the results of quantitative assessments of all reporting units, the Company concluded that no impairment existed at December 31, 2014. However, future events could cause the Company to conclude that goodwill or other intangibles have become impaired, which would result in recording an impairment loss. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. |
Derivatives, Policy [Policy Text Block] | Interest Rate Swap Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. With the exception of forward commitment contracts discussed above under Loans Held for Sale, the Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain variable rate deposits. At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”),or (3) an instrument with no hedging designation (“stand-alone derivative”). The Company has no fair value hedges or stand-alone derivatives, only cash flow hedges. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income (a Consolidated Balance Sheet component of Shareholders Equity) and is reclassified into earnings in the same period(s) during which the hedged transaction affects earnings (i.e. the period when cash flows are exchanged between counterparties). For both fair value and cash flow hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income or expense. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Repurchase and Resale Agreements Policy [Policy Text Block] | Customer Repurchase Agreements The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same securities. Under these arrangements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, securities sold under agreements to repurchase are accounted for as collateralized financing arrangements and not as a sale and subsequent repurchase of securities. The agreements are entered into primarily as accommodations for large commercial deposit customers. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated balance of sheets, while the securities underlying the securities sold under agreements to repurchase remain in the respective assets accounts and are delivered to and held as collateral by third party trustees. |
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | Marketing and Advertising Marketing and advertising costs are generally expensed as incurred. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company employs the liability method of accounting for income taxes as required by ASC Topic 740, “ Income Taxes Transfer of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. In certain cases, the recourse to the Bank to repurchase assets may exist but is deemed immaterial based on the specific facts and circumstances. Earnings per Common Share Basic net income per common share is derived by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period measured. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period measured including the potential dilutive effects of common stock equivalents. Stock-Based Compensation I n accordance with ASC Topic 718, “Compensation,” |
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Transfer of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. In certain cases, the recourse to the Bank to repurchase assets may exist but is deemed immaterial based on the specific facts and circumstances. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share Basic net income per common share is derived by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period measured. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period measured including the potential dilutive effects of common stock equivalents. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation I n accordance with ASC Topic 718, “Compensation,” |
Note 3 - Investment Securitie23
Note 3 - Investment Securities Available-for-Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Gross Gross Estimated June 30, 2015 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U. S. Government agency securities $ 59,360 $ 637 # $ 294 $ 59,703 Residential mortgage backed securities 256,196 1,517 2,050 255,663 Municipal bonds 90,593 2,872 627 92,838 Corporate bonds 15,100 - 59 15,041 Other equity investments 396 68 - 464 $ 421,645 $ 5,094 $ 3,030 $ 423,709 Gross Gross Estimated December 31, 2014 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U. S. Government agency securities $ 29,434 $ 500 # $ 40 $ 29,894 Residential mortgage backed securities 241,120 1,716 2,516 240,320 Municipal bonds 106,983 4,850 121 111,712 Other equity investments 396 21 - 417 $ 377,933 $ 7,087 $ 2,677 $ 382,343 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less than 12 Months 12 Months or Greater Total Estimated Estimated Estimated June 30, 2015 Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Losses Value Losses Value Losses U. S. Government agency securities $ 25,511 $ 294 $ - $ - $ 25,511 $ 294 Residential mortgage backed securities 59,378 425 70,155 1,625 129,533 2,050 Municipal bonds 31,814 627 - - 31,814 627 Corporate bonds 11,307 59 - - 11,307 59 $ 128,010 $ 1,405 $ 70,155 $ 1,625 $ 198,165 $ 3,030 Less than 12 Months 12 Months or Greater Total Estimated Estimated Estimated December 31, 2014 Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Losses Value Losses Value Losses U. S. Government agency securities $ 2,001 $ 7 $ 1,750 $ 33 $ 3,751 $ 40 Residential mortgage backed securities 49,644 221 86,028 2,295 135,672 2,516 Municipal bonds 4,974 14 10,915 107 15,889 121 $ 56,619 $ 242 $ 98,693 $ 2,435 $ 155,312 $ 2,677 |
Available-for-sale Securities [Table Text Block] | June 30, 2015 December 31, 2014 Amortized Estimated Amortized Estimated (dollars in thousands) Cost Fair Value Cost Fair Value U. S. Government agency securities maturing: One year or less $ 30,957 $ 30,813 $ 2,998 $ 3,051 After one year through five years 21,905 22,266 19,947 20,276 Five years through ten years 6,498 6,624 6,489 6,567 Residential mortgage backed securities 256,196 255,663 241,120 240,320 Municipal bonds maturing: One year or less 1,530 1,534 2,410 2,438 After one year through five years 39,733 41,838 47,038 49,607 Five years through ten years 44,028 44,081 54,983 56,927 After ten years 5,302 5,385 2,552 2,740 Corporate bonds After one year through five years 15,100 15,041 - - Other equity investments 396 464 396 417 $ 421,645 $ 423,709 $ 377,933 $ 382,343 |
Note 5 - Loans and Allowance 24
Note 5 - Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, 2015 December 31, 2014 June 30, 2014 (dollars in thousands) Amount % Amount % Amount % Commercial $ 960,506 21 % $ 916,226 21 % $ 726,611 22 % Income producing - commercial real estate 1,863,583 41 % 1,703,172 40 % 1,302,479 40 % Owner occupied - commercial real estate 497,834 11 % 461,581 11 % 330,073 10 % Real estate mortgage - residential 149,842 3 % 148,018 3 % 123,587 4 % Construction - commercial and residential 901,617 20 % 793,432 18 % 642,264 20 % Construction - C&I (owner occupied) 54,134 1 % 58,032 1 % 38,368 1 % Home equity 118,544 3 % 122,536 3 % 108,931 3 % Other consumer 4,837 - 109,402 3 % 7,116 - Total loans 4,550,897 100 % 4,312,399 100 % 3,279,429 100 % Less: Allowance for Credit Losses (48,921 ) (46,075 ) (43,552 ) Net loans $ 4,501,976 $ 4,266,324 $ 3,235,877 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Income Owner Construction Producing Commercial Occupied Real Estate Mortgage Commercial and Home Other (dollars in thousands) Commercial Real Estate Real Estate Residential Residential Equity Consumer Total Three months ended June 30, 2015 Allowance for credit losses: Balance at beginning of period $ 13,777 $ 11,652 $ 3,127 $ 1,055 $ 16,383 $ 1,509 $ 276 $ 47,779 Loans charged-off (2,307 ) (79 ) - - - - (16 ) (2,402 ) Recoveries of loans previously charged-off 24 18 1 1 9 2 18 73 Net loans charged-off (2,283 ) (61 ) 1 1 9 2 2 (2,329 ) Provision for credit losses 1,417 820 (15 ) 26 1,241 (15 ) (3 ) 3,471 Ending balance $ 12,911 $ 12,411 $ 3,113 $ 1,082 $ 17,633 $ 1,496 $ 275 $ 48,921 Six months ended June 30, 2015 Allowance for credit losses: Balance at beginning of period $ 13,222 $ 11,442 $ 2,954 $ 1,259 $ 15,625 $ 1,469 $ 104 $ 46,075 Loans charged-off (3,305 ) (397 ) - - - (419 ) (87 ) (4,208 ) Recoveries of loans previously charged-off 75 18 2 3 104 4 67 273 Net loans charged-off (3,230 ) (379 ) 2 3 104 (415 ) (20 ) (3,935 ) Provision for credit losses 2,919 1,348 157 (180 ) 1,904 442 191 6,781 Ending balance $ 12,911 $ 12,411 $ 3,113 $ 1,082 $ 17,633 $ 1,496 $ 275 $ 48,921 For the period ended June 30, 2015 Allowance for credit losses: Individually evaluated for impairment $ 4,066 $ 491 $ 386 $ - $ 803 $ 293 $ - $ 6,039 Collectively evaluated for impairment 8,845 11,920 2,727 1,082 16,830 1,203 275 42,882 Ending balance $ 12,911 $ 12,411 $ 3,113 $ 1,082 $ 17,633 $ 1,496 $ 275 $ 48,921 Three months ended June 30, 2014 Allowance for credit losses: Balance at beginning of period $ 11,420 $ 10,590 $ 3,195 $ 754 $ 14,179 $ 1,507 $ 373 $ 42,018 Loans charged-off (1,378 ) - - (28 ) (225 ) - (59 ) (1,690 ) Recoveries of loans previously charged-off 72 4 7 - 6 1 - 90 Net loans charged-off (1,306 ) 4 7 (28 ) (219 ) 1 (59 ) (1,600 ) Provision for credit losses 1,299 151 71 232 1,527 (177 ) 31 3,134 Ending balance $ 11,413 $ 10,745 $ 3,273 $ 958 $ 15,487 $ 1,331 $ 345 $ 43,552 Six months ended June 30, 2014 Allowance for credit losses: Balance at beginning of period $ 9,780 $ 10,359 $ 3,899 $ 944 $ 13,934 $ 1,871 $ 134 $ 40,921 Loans charged-off (1,651 ) - (35 ) (90 ) (806 ) (149 ) (84 ) (2,815 ) Recoveries of loans previously charged-off 283 4 7 - 71 6 7 378 Net loans charged-off (1,368 ) 4 (28 ) (90 ) (735 ) (143 ) (77 ) (2,437 ) Provision for credit losses 3,001 382 (598 ) 104 2,288 (397 ) 288 5,068 Ending balance $ 11,413 $ 10,745 $ 3,273 $ 958 $ 15,487 $ 1,331 $ 345 $ 43,552 For the Period Ended June 30, 2014 Allowance for credit losses: Individually evaluated for impairment $ 3,501 $ 732 $ 1,102 $ - $ 1,605 $ 208 $ - $ 7,148 Collectively evaluated for impairment 7,912 10,013 2,171 958 13,882 1,123 345 36,404 Ending balance $ 11,413 $ 10,745 $ 3,273 $ 958 $ 15,487 $ 1,331 $ 345 $ 43,552 |
Schedule of Recorded Investment in Loans [Table Text Block] | Income Producing Owner occupied Real Estate Construction Commercial Commercial Commercial Mortgage and Home Other (dollars in thousands) Commercial Real Estate Real Estate Residential Residential Equity Consumer Total June 30, 2015 Recorded investment in loans: Individually evaluated for impairment $ 17,966 $ 2,371 $ 1,827 $ - $ 17,891 $ 887 $ 18 $ 40,960 Collectively evaluated for impairment 942,540 1,861,212 496,007 149,842 937,860 117,657 4,819 4,509,937 Ending balance $ 960,506 $ 1,863,583 $ 497,834 $ 149,842 $ 955,751 $ 118,544 $ 4,837 $ 4,550,897 December 31, 2014 Recorded investment in loans: Individually evaluated for impairment $ 17,612 $ 5,109 $ 6,891 $ - $ 14,241 $ 1,398 $ 59 $ 45,310 Collectively evaluated for impairment 898,614 1,698,063 454,690 148,018 837,223 121,138 109,343 4,267,089 Ending balance $ 916,226 $ 1,703,172 $ 461,581 $ 148,018 $ 851,464 $ 122,536 $ 109,402 $ 4,312,399 June 30, 2014 Recorded investment in loans: Individually evaluated for impairment $ 17,405 $ 2,913 $ 3,230 $ - $ 12,882 $ 561 $ - $ 36,991 Collectively evaluated for impairment 709,206 1,299,566 326,843 123,587 667,750 108,370 7,116 3,242,438 Ending balance $ 726,611 $ 1,302,479 $ 330,073 $ 123,587 $ 680,632 $ 108,931 $ 7,116 $ 3,279,429 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Watch and Total (dollars in thousands) Pass Special Mention Substandard Doubtful Loans June 30, 2015 Commercial $ 920,429 $ 22,111 $ 17,966 $ - $ 960,506 Income producing - commercial real estate 1,837,021 24,191 2,371 - 1,863,583 Owner occupied - commercial real estate 487,922 8,085 1,827 - 497,834 Real estate mortgage – residential 149,101 741 - - 149,842 Construction - commercial and residential 937,069 791 17,891 - 955,751 Home equity 115,945 1,712 887 - 118,544 Other consumer 4,819 - 18 - 4,837 Total $ 4,452,306 $ 57,631 $ 40,960 $ - $ 4,550,897 December 31, 2014 Commercial $ 875,102 $ 23,512 $ 17,612 $ - $ 916,226 Income producing - commercial real estate 1,679,101 18,962 5,109 - 1,703,172 Owner occupied - commercial real estate 445,013 9,677 6,891 - 461,581 Real estate mortgage – residential 147,262 756 - - 148,018 Construction - commercial and residential 827,503 9,720 14,241 - 851,464 Home equity 119,420 1,718 1,398 - 122,536 Other consumer 109,343 - 59 - 109,402 Total $ 4,202,744 $ 64,345 $ 45,310 $ - $ 4,312,399 June 30, 2014 Commercial $ 695,191 $ 14,015 $ 17,405 $ - $ 726,611 Investment - commercial real estate 1,286,730 12,836 2,913 - 1,302,479 Owner occupied - commercial real estate 313,523 13,320 3,230 - 330,073 Real estate mortgage – residential 122,681 906 - - 123,587 Construction - commercial and residential 654,631 13,119 12,882 - 680,632 Home equity 106,468 1,902 561 - 108,931 Other consumer 7,116 - - - 7,116 Total $ 3,186,340 $ 56,098 $ 36,991 $ - $ 3,279,429 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | (dollars in thousands) June 30, 2015 December 31, 2014 June 30, 2014 Commercial $ 9,684 $ 12,975 $ 8,671 Income producing - commercial real estate 2,062 2,645 2,676 Owner occupied - commercial real estate 1,297 1,324 3,230 Real estate mortgage - residential 338 346 650 Construction - commercial and residential 585 3,697 6,877 Home equity 887 1,398 403 Other consumer 18 58 - Total nonaccrual loans (1)(2) $ 14,871 $ 22,443 $ 22,507 |
Past Due Financing Receivables [Table Text Block] | Loans Loans Loans Total Recorded 30-59 Days 60-89 Days 90 Days or Total Past Current Investment in (dollars in thousands) Past Due Past Due More Past Due Due Loans Loans Loans June 30, 2015 Commercial $ 2,056 $ 983 $ 9,684 $ 12,723 $ 947,783 $ 960,506 Income producing - commercial real estate 1,669 6,231 2,062 9,962 1,853,621 1,863,583 Owner occupied - commercial real estate 531 - 1,297 1,828 496,006 497,834 Real estate mortgage – residential 1,625 - 338 1,963 147,879 149,842 Construction - commercial and residential 6,805 - 585 7,390 948,361 955,751 Home equity - 641 887 1,528 117,016 118,544 Other consumer 113 55 18 186 4,651 4,837 Total $ 12,799 $ 7,910 $ 14,871 $ 35,580 $ 4,515,317 $ 4,550,897 December 31, 2014 Commercial $ 1,505 $ 4,032 $ 12,975 $ 18,512 $ 897,714 $ 916,226 Income producing - commercial real estate 1,825 5,376 2,645 9,846 1,693,326 1,703,172 Owner occupied - commercial real estate 1,089 214 1,324 2,627 458,954 461,581 Real estate mortgage – residential - - 346 346 147,672 148,018 Construction - commercial and residential - - 3,697 3,697 847,767 851,464 Home equity - 1,365 1,398 2,763 119,773 122,536 Other consumer 284 81 58 423 108,979 109,402 Total $ 4,703 $ 11,068 $ 22,443 $ 38,214 $ 4,274,185 $ 4,312,399 |
Impaired Financing Receivables [Table Text Block] | Unpaid Recorded Recorded Total Average Recorded Investment Interest Income Recognized Principal With No With Recorded Related Quarter Year Quarter Year (dollars in thousands) Balance Allowance Allowance Investment Allowance To Date To Date To Date To Date June 30, 2015 Commercial $ 12,948 $ 1,558 $ 8,397 $ 9,955 $ 4,066 $ 10,606 $ 11,396 $ 9 $ 9 Income producing - commercial real estate 10,545 8,712 1,140 9,852 491 9,914 10,107 36 71 Owner occupied - commercial real estate 1,831 1,002 829 1,831 386 1,849 1,862 - - Real estate mortgage – residential 338 338 - 338 - 340 342 - - Construction - commercial and residential 5,641 - 5,641 5,641 803 7,156 7,699 99 198 Home equity 887 117 770 887 293 888 1,058 - - Other consumer 18 18 - 18 - 14 29 1 1 Total $ 32,208 $ 11,745 $ 16,777 $ 28,522 $ 6,039 $ 30,767 $ 32,493 $ 145 $ 279 December 31, 2014 Commercial $ 14,075 $ 1,603 $ 11,372 $ 12,975 $ 5,334 $ 14,203 $ 13,681 $ 20 $ 251 Income producing - commercial real estate 10,869 8,952 1,542 10,494 751 8,202 7,021 196 203 Owner occupied - commercial real estate 1,889 1,038 851 1,889 577 2,696 3,986 - 6 Real estate mortgage – residential 346 346 - 346 - 348 529 - - Construction - commercial and residential 8,785 8,176 609 8,785 927 10,113 10,967 436 1,147 Home equity 1,398 339 1,059 1,398 430 993 747 32 36 Other consumer 58 - 58 58 45 29 30 7 7 Total $ 37,420 $ 20,454 $ 15,491 $ 35,945 $ 8,064 $ 36,584 $ 36,961 $ 691 $ 1,650 June 30, 2014 Commercial $ 9,771 $ 348 $ 8,323 $ 8,671 $ 3,501 $ 8,873 $ 11,032 $ 3 $ 3 Investment - commercial real estate 6,416 1,512 4,529 6,041 732 5,841 5,861 43 78 Owner occupied - commercial 3,230 99 3,131 3,230 1,102 5,277 5,335 - - Real estate mortgage – residential 650 650 - 650 - 711 769 - - Construction - commercial and residential 12,516 4,347 7,071 11,418 1,605 11,822 12,192 49 552 Home equity 403 125 278 403 208 501 541 - - Other consumer - - - - - 30 43 - - Total $ 32,986 $ 7,081 $ 23,332 $ 30,413 $ 7,148 $ 33,055 $ 35,773 $ 95 $ 633 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | TDRs Performing TDRs Not Performing (dollars in thousands) Number of to Modified Terms to Modified Terms Total June 30, 2015 Commercial 2 $ 272 $ 219 $ 491 Income producing - commercial real estate 3 7,790 - 7,790 Owner occupied - commercial real estate 1 534 - 534 Construction - commercial and residential 1 5,056 - 5,056 Total 7 $ 13,652 $ 219 $ 13,871 December 31, 2014 Commercial 1 $ - $ 227 $ 227 Income producing - commercial real estate 3 7,849 - 7,849 Owner occupied - commercial real estate 1 565 - 565 Construction - commercial and residential 1 5,088 - 5,088 Total 6 $ 13,502 $ 227 $ 13,729 |
Note 6. Interest Rate Swap De25
Note 6. Interest Rate Swap Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | Swap Notional Balance Sheet June 30, 2015 Number Amount Fair Value Category Receive Rate Pay Rate Maturity (dollars in thousands) Interest rate swap (1 ) $ 75,000 $ 521 Other Assets 1 month USD-LIBOR-BBA w/ -1 day lookback +10 basis points 1.71 % March 31, 2020 Interest rate swap (2 ) 100,000 1,302 Other Assets Federal Funds Effective Rate +10 basis points 1.74 % April 15, 2021 Interest rate swap (3 ) 75,000 1,358 Other Assets 1 month USD-LIBOR-BBA w/ -1 day lookback +10 basis points 1.92 % March 31, 2022 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Six Months Ended June 30, 2015 Effective Portion Ineffective Portion Reclassified from AOCI Recognized in Income Amount of into income on Derivatives Swap Pre-tax gain (loss) Amount of Amount of Number Recognized in OCI Category Gain (Loss) Category Gain (Loss) (dollars in thousands) Interest rate swap (1 ) $ 521 $ - $ - Interest rate swap (2 ) 1,302 - - Interest rate swap (3 ) 1,358 - - |
Note 7 - Other Real Estate Ow26
Note 7 - Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Other Real Estate, Roll Forward [Table Text Block] | Three Months Ended Six Months Ended (dollars in thousands) June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Balance beginning of period $ 12,338 $ 8,809 $ 13,224 $ 9,225 Real estate acquired from borrowers 1,500 85 1,500 330 Valuation allowance - (51 ) (750 ) (505 ) Properties sold (3,123 ) - (3,259 ) (207 ) Balance end of period $ 10,715 $ 8,843 $ 10,715 $ 8,843 |
Note 8 - Net Income Per Commo27
Note 8 - Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Six Months Ended June 30, Three Months Ended June 30, (dollars and shares in thousands, except per share data) 2015 2014 2015 2014 Basic: Net income available to common shareholders $ 39,997 $ 25,160 $ 20,759 $ 12,802 Average common shares outstanding 32,231 25,955 33,367 25,982 Basic net income per common share $ 1.24 $ 0.97 $ 0.62 $ 0.49 Diluted: Net income available to common shareholders $ 39,997 $ 25,160 $ 20,759 $ 12,802 Average common shares outstanding 32,231 25,955 33,367 25,982 Adjustment for common share equivalents 664 645 631 647 Average common shares outstanding-diluted 32,895 26,600 33,998 26,629 Diluted net income per common share $ 1.22 $ 0.95 $ 0.61 $ 0.48 Anti-dilutive shares 13 21 13 21 |
Note 9 - Stock-Based Compensa28
Note 9 - Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Six Months Ended June 30, 2015 2014 Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Beginning balance 759,683 $ 11.36 503,834 $ 10.41 Issued - - 21,000 32.77 Exercised (369,952 ) 12.70 (24,897 ) 12.25 Forfeited (1,650 ) 15.48 (110 ) 5.76 Expired (8,007 ) 16.90 (408 ) 9.37 Ending balance 380,074 $ 9.92 499,419 $ 11.26 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Outstanding: Stock Options Weighted-Average Weighted-Average Remaining Range of Exercise Prices Outstanding Contractual Life $ 5.76 $9.21 223,329 $ 5.76 3.53 $ 9.22 $15.47 110,305 12.38 2.46 $ 15.48 $22.66 22,706 19.07 7.99 $ 22.67 $32.36 23,734 28.82 5.96 380,074 $ 9.92 3.64 Exercisable: Stock Options Weighted-Average Range of Exercise Prices Exercisable Exercise Price $ 5.76 $9.21 166,419 $ 5.76 $ 9.22 $15.47 103,305 12.48 $ 15.48 $22.66 19,076 19.28 $ 22.67 $32.36 11,334 26.27 300,134 $ 9.71 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended Years Ended December 31, June 30, 2015 2014 2013 Expected volatility N/A 34.25 % 34.12 % Weighted-Average volatility N/A 34.25 % 34.12 % Expected dividends 0.0 % 0.0 % 0.0 % Expected term (in years) N/A 9.4 7.5 Risk-free rate N/A 2.26 % 1.31 % Weighted-average fair value (grant date) N/A $ 13.49 $ 7.83 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Six Months Ended June 30, 2015 2014 Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Unvested at beginning 509,336 $ 21.58 614,580 $ 18.71 Issued 78,070 36.06 78,947 33.24 Forfeited (1,209 ) 28.67 (832 ) 23.59 Vested (193,930 ) 20.66 (184,921 ) 17.54 Unvested at end 392,267 $ 24.89 507,774 $ 21.39 |
Note 10 - Other Comprehensive29
Note 10 - Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2015 Net unrealized loss on securities available-for-sale $ (3,405 ) $ (1,362 ) $ (2,043 ) Net unrealized gain on derivatives 3,181 1,272 1,909 Less: Reclassification adjustment for net gains included in net income - - - Other Comprehensive Loss $ (224 ) $ (90 ) $ (134 ) Three Months Ended June 30, 2014 Net unrealized gain on securities available-for-sale $ 3,900 $ 1,559 $ 2,341 Less: Reclassification adjustment for net gains included in net income (2 ) (1 ) (1 ) Other Comprehensive Income $ 3,898 $ 1,558 $ 2,340 Six Months Ended June 30, 2015 Net unrealized loss on securities available-for-sale $ (187 ) $ (75 ) $ (112 ) Net unrealized gain on derivatives 3,181 1,272 1,909 Less: Reclassification adjustment for net gains included in net income (2,164 ) (866 ) (1,298 ) Other Comprehensive Income $ 830 $ 331 $ 499 Six Months Ended June 30, 2014 Net unrealized gain on securities available-for-sale $ 8,605 $ 3,442 $ 5,163 Less: Reclassification adjustment for net gains included in net income (10 ) (4 ) (6 ) Other Comprehensive Income $ 8,595 $ 3,438 $ 5,157 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other (dollars in thousands) Securities Available For Sale Comprehensive (Loss) Income Three Months Ended June 30, 2015 Balance at Beginning of Period $ 3,280 $ 3,280 Other comprehensive income before reclassifications (134 ) (134 ) Amounts reclassified from accumulated other comprehensive income - - Net other comprehensive income during period (134 ) (134 ) Balance at End of Period $ 3,146 $ 3,146 Three Months Ended June 30, 2014 Balance at Beginning of Period $ (502 ) $ (502 ) Other comprehensive income before reclassifications 2,341 2,341 Amounts reclassified from accumulated other comprehensive income (1 ) (1 ) Net other comprehensive (loss) during period 2,340 2,340 Balance at End of Period $ 1,838 $ 1,838 Six Months Ended June 30, 2015 Balance at Beginning of Period $ 2,647 $ 2,647 Other comprehensive income before reclassifications 1,797 1,797 Amounts reclassified from accumulated other comprehensive income (1,298 ) (1,298 ) Net other comprehensive income during period 499 499 Balance at End of Period $ 3,146 $ 3,146 Six Months Ended June 30, 2014 Balance at Beginning of Period $ (3,319 ) $ (3,319 ) Other comprehensive income before reclassifications 5,163 5,163 Amounts reclassified from accumulated other comprehensive income (6 ) (6 ) Net other comprehensive (loss) during period 5,157 5,157 Balance at End of Period $ 1,838 $ 1,838 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified from Affected Line Item in Details about Accumulated Other Accumulated Other the Statement Where Comprehensive Income Components (dollars in thousands) Comprehensive (Loss) Income Net Income is Presented Three Months Ended June 30, 2015 2014 Realized gain on sale of investment securities $ - $ 2 Gain on sale of investment securities - (1 ) Tax Expense Total Reclassifications for the Period $ - $ 1 Net of Tax Amount Reclassified from Affected Line Item in Details about Accumulated Other Accumulated Other the Statement Where Comprehensive Income Components (dollars in thousands) Comprehensive (Loss) Income Net Income is Presented Six Months Ended June 30, 2015 2014 Realized gain on sale of investment securities $ 2,164 $ 10 Gain on sale of investment securities (866 ) (4 ) Tax Expense Total Reclassifications for the Period $ 1,298 $ 6 Net of Tax |
Note 11 - Fair Value Measurem30
Note 11 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total (Fair Value) June 30, 2015 Investment securities available for sale: U. S. Government agency securities $ - $ 59,703 $ - $ 59,703 Residential mortgage backed securities - 255,663 - 255,663 Municipal bonds - 92,838 - 92,838 Corporate bonds - 15,041 - 15,041 Other equity investments 245 - 219 464 Loans held for sale - 132,683 - 132,683 Mortgage banking derivatives - - 165 165 Interest rate swap derivatives - 3,181 - 3,181 Total assets measured at fair value on a recurring basis as of June 30, 2015 $ 245 $ 559,109 $ 384 $ 559,738 (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total (Fair Value) December 31, 2014 Investment securities available for sale: U. S. Government agency securities $ - $ 29,894 $ - $ 29,894 Residential mortgage backed securities - 240,320 - 240,320 Municipal bonds - 111,712 - 111,712 Other equity investments 198 - 219 417 Loans held for sale - 44,317 - 44,317 Mortgage banking derivatives - - 146 146 Total assets measured at fair value on a recurring basis as of December 31, 2014 $ 198 $ 426,243 $ 365 $ 426,806 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Other Equity Derivative (dollars in thousands) Investments Assets/(Liabilities) Total Assets: Beginning balance at December 31, 2014 $ 219 $ 146 $ 365 Realized gain (loss) included in earnings - net derivatives - 19 19 Principal redemption - - - Ending balance at June 30, 2015 $ 219 $ 165 $ 384 Liabilities: Beginning balance at December 31, 2014 $ - $ (250 ) $ (250 ) Realized gain (loss) included in earnings - net derivatives - 235 235 Principal redemption - - - Ending balance at June 30, 2015 $ - $ (15 ) $ (15 ) Other Equity Derivative (dollars in thousands) Investments Assets/(Liabilities) Total Assets: Beginning balance at December 31, 2013 $ 219 $ - $ 219 Realized gain (loss) included in earnings - net derivatives - 146 146 Ending balance at December 31, 2014 $ 219 $ 146 $ 365 Liabilities: Beginning balance at December 31, 2013 $ - $ - $ - Realized gain (loss) included in earnings - net derivatives - (250 ) (250 ) Ending balance at December 31, 2014 $ - $ (250 ) $ (250 ) |
Fair Value Measurements, Nonrecurring [Table Text Block] | (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total (Fair Value) June 30, 2015 Impaired loans: Commercial $ - $ 1,675 $ 4,214 $ 5,889 Income producing - commercial real estate - 1,263 8,098 9,361 Owner occupied - commercial real estate - 725 720 1,445 Real estate mortgage - residential - - 338 338 Construction - commercial and residential - 35 4,803 4,838 Home equity - - 594 594 Other consumer - - 18 18 Other real estate owned - 10,715 - 10,715 Total assets measured at fair value on a nonrecurring basis as of June 30, 2015 $ - $ 14,413 $ 18,785 $ 33,198 (dollars in thousands) Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total (Fair Value) December 31, 2014 Impaired loans: Commercial $ - $ 781 $ 7,171 $ 7,952 Income producing - commercial real estate - 703 1,199 1,902 Owner occupied - commercial real estate - - 824 824 Real estate mortgage - residential - - 346 346 Construction - commercial and residential - - 3,297 3,297 Home equity - 5 963 968 Other consumer - - 13 13 Other real estate owned - 9,184 4,040 13,224 Total assets measured at fair value on a nonrecurring basis as of December 31, 2014 $ - $ 10,673 $ 17,853 $ 28,526 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements Quoted Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Carrying Value Fair Value (Level 1) (Level 2) (Level 3) June 30, 2015 Assets Cash and due from banks $ 10,284 $ 10,284 $ - $ 10,284 $ - Federal funds sold 6,276 6,276 - 6,276 - Interest bearing deposits with other banks 380,336 380,336 - 380,336 - Investment securities 423,709 423,709 245 423,245 219 Federal Reserve and Federal Home Loan Bank stock 16,828 16,828 - 16,828 - Loans held for sale 132,683 132,683 - 132,683 - Loans 4,550,897 4,557,057 - 3,698 4,553,359 Bank owned life insurance 57,889 57,889 - 57,889 - Annuity investment 12,146 12,146 - 12,146 - Mortgage banking derivatives 165 165 - - 165 Interst rate swap derivatives 3,181 3,181 - 3,181 - Liabilities Noninterest bearing deposits 1,370,590 1,370,590 - 1,370,590 - Interest bearing deposits 2,659,719 3,454,590 - 3,454,590 - Certificates of deposit 795,124 794,871 - 794,871 - Customer repurchase agreements 53,394 53,394 - 53,394 - Borrowings 127,444 127,476 - 127,476 - Mortgage banking derivatives 15 15 - - 15 December 31, 2014 Assets Cash and due from banks $ 9,097 $ 9,097 $ - $ 9,097 $ - Federal funds sold 3,516 3,516 - 3,516 - Interest bearing deposits with other banks 243,412 243,412 - 243,412 - Investment securities 382,343 382,343 198 381,926 219 Federal Reserve and Federal Home Loan Bank stock 22,560 22,560 - 22,560 - Loans held for sale 44,317 44,669 - 44,669 - Loans 4,312,399 4,314,618 - 1,489 4,313,129 Bank owned life insurance 56,594 56,594 - 56,594 - Annuity investment 11,277 11,277 - 11,277 - Mortgage banking derivatives 146 146 - - 146 Liabilities Noninterest bearing deposits 1,175,799 1,175,799 - 1,175,799 - Interest bearing deposits 2,446,228 3,134,295 - 3,134,295 - Certificates of deposit 688,741 688,067 - 688,067 - Customer repurchase agreements 61,120 61,120 - 61,120 - Borrowings 280,420 281,958 - 281,958 - Mortgage banking derivatives 250 250 - - 250 |
Note 1 - Summary of Significa31
Note 1 - Summary of Significant Accounting Policies (Details) | Oct. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) |
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | $ 132,683,000 | $ 44,317,000 | $ 35,411,000 | |
Goodwill, Impairment Loss | 0 | |||
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 | 0 | |
Banking Services [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Number of Offices | 22 | |||
Lending Services [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Number of Offices | 4 | |||
Consumer Portfolio Segment [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | $ 83,400,000 | |||
Virginia Heritage Bank [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans | $ 800,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposit Liabilities | 645,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Borrowings | 95,000,000 | |||
Goodwill | 102,300,000 | |||
Business Combination, Fair Value Credit Mark on Loan Portfolio | 12,500,000 | |||
Eagle Commercial Ventures, LLC [Member] | Risk Level, High [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Number of Higher Risk Lending Transactions Outstanding | 6 | 4 | ||
Loans Receivable, Net | $ 11,800,000 | $ 6,200,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Virginia Heritage Bank [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans | 3,000,000 | |||
Minimum [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Loan Period | 30 days | |||
Minimum [Member] | Furniture and Fixtures [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Minimum [Member] | Building and Building Improvements [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Maximum [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Loan Period | 90 days | |||
Maximum [Member] | Furniture and Fixtures [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Maximum [Member] | Building and Building Improvements [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Core Deposits [Member] | Virginia Heritage Bank [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 4,600,000 | |||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||
Servicing Contracts [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Other Intangible Assets, Net | $ 0 | $ 0 | $ 0 | |
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years |
Note 3 - Investment Securitie32
Note 3 - Investment Securities Available-for-Sale (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Note 3 - Investment Securities Available-for-Sale (Details) [Line Items] | |||
Debt Securities, Weighted Average Duration | 3 years 328 days | ||
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | $ 16,828,000 | $ 22,560,000 | $ 10,626,000 |
Available-for-sale Securities, Gross Realized Gains | 2,500,000 | 116,000 | |
Available-for-sale Securities, Gross Realized Losses | 294,000 | 106,000 | |
Proceeds from Sale of Available-for-sale Securities | 65,700,000 | 17,500,000 | |
Available-for-sale Securities Pledged as Collateral | 368,500,000 | ||
Securities Holdings of any One Issuer Exceeding 10% of Shareholders' Equity | $ 0 | $ 0 | |
Debt Securities [Member] | Total Investment Securities [Member] | Investment Securities Concentration Risk [Member] | |||
Note 3 - Investment Securities Available-for-Sale (Details) [Line Items] | |||
Concentration Risk, Percentage | 99.90% |
Note 3 - Investment Securitie33
Note 3 - Investment Securities Available-for-Sale (Details) - Securities Available-for-sale - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Note 3 - Investment Securities Available-for-Sale (Details) - Securities Available-for-sale [Line Items] | |||
Amortized Cost | $ 421,645 | $ 377,933 | |
Gross Unrealized gains | 5,094 | 7,087 | |
Gross unrealized losses | 3,030 | 2,677 | |
Estimated fair value | 423,709 | 382,343 | $ 378,990 |
US Government Agencies Debt Securities [Member] | |||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities Available-for-sale [Line Items] | |||
Amortized Cost | 59,360 | 29,434 | |
Gross Unrealized gains | 637 | 500 | |
Gross unrealized losses | 294 | 40 | |
Estimated fair value | 59,703 | 29,894 | |
Residential Mortgage Backed Securities [Member] | |||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities Available-for-sale [Line Items] | |||
Amortized Cost | 256,196 | 241,120 | |
Gross Unrealized gains | 1,517 | 1,716 | |
Gross unrealized losses | 2,050 | 2,516 | |
Estimated fair value | 255,663 | 240,320 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities Available-for-sale [Line Items] | |||
Amortized Cost | 90,593 | 106,983 | |
Gross Unrealized gains | 2,872 | 4,850 | |
Gross unrealized losses | 627 | 121 | |
Estimated fair value | 92,838 | 111,712 | |
Corporate Debt Securities [Member] | |||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities Available-for-sale [Line Items] | |||
Amortized Cost | 15,100 | ||
Gross unrealized losses | 59 | ||
Estimated fair value | 15,041 | ||
Equity Investment Other [Member] | |||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities Available-for-sale [Line Items] | |||
Amortized Cost | 396 | 396 | |
Gross Unrealized gains | 68 | 21 | |
Estimated fair value | $ 464 | $ 417 |
Note 3 - Investment Securitie34
Note 3 - Investment Securities Available-for-Sale (Details) - Securities in Continuous Unrealized Loss Position - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Note 3 - Investment Securities Available-for-Sale (Details) - Securities in Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 Months Estimated Fair Value | $ 128,010 | $ 56,619 |
Less than 12 Months Unrealized Losses | 1,405 | 242 |
12 Months or Greater Estimated Fair Value | 70,155 | 98,693 |
12 Months or Greater Unrealized Losses | 1,625 | 2,435 |
Total Estimated Fair Value | 198,165 | 155,312 |
Total Unrealized Losses | 3,030 | 2,677 |
US Government Agencies Debt Securities [Member] | ||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities in Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 Months Estimated Fair Value | 25,511 | 2,001 |
Less than 12 Months Unrealized Losses | 294 | 7 |
12 Months or Greater Estimated Fair Value | 1,750 | |
12 Months or Greater Unrealized Losses | 33 | |
Total Estimated Fair Value | 25,511 | 3,751 |
Total Unrealized Losses | 294 | 40 |
Residential Mortgage Backed Securities [Member] | ||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities in Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 Months Estimated Fair Value | 59,378 | 49,644 |
Less than 12 Months Unrealized Losses | 425 | 221 |
12 Months or Greater Estimated Fair Value | 70,155 | 86,028 |
12 Months or Greater Unrealized Losses | 1,625 | 2,295 |
Total Estimated Fair Value | 129,533 | 135,672 |
Total Unrealized Losses | 2,050 | 2,516 |
US States and Political Subdivisions Debt Securities [Member] | ||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities in Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 Months Estimated Fair Value | 31,814 | 4,974 |
Less than 12 Months Unrealized Losses | 627 | 14 |
12 Months or Greater Estimated Fair Value | 10,915 | |
12 Months or Greater Unrealized Losses | 107 | |
Total Estimated Fair Value | 31,814 | 15,889 |
Total Unrealized Losses | 627 | $ 121 |
Corporate Debt Securities [Member] | ||
Note 3 - Investment Securities Available-for-Sale (Details) - Securities in Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 Months Estimated Fair Value | 11,307 | |
Less than 12 Months Unrealized Losses | 59 | |
Total Estimated Fair Value | 11,307 | |
Total Unrealized Losses | $ 59 |
Note 3 - Investment Securitie35
Note 3 - Investment Securities Available-for-Sale (Details) - Securities Available-for-sale by Contractual Maturity - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
U. S. Government agency securities maturing: | ||
Residential mortgage backed securities, amortized cost | $ 421,645 | $ 377,933 |
Residential mortgage backed securities, estimated fair value | 423,709 | 382,343 |
US Government Agencies Debt Securities [Member] | ||
U. S. Government agency securities maturing: | ||
One year or less, amortized cost | 30,957 | 2,998 |
One year or less, estimated fair value | 30,813 | 3,051 |
After one year through five years, amortized cost | 21,905 | 19,947 |
After one year through five years, estimated fair value | 22,266 | 20,276 |
Five years through ten years, amortized cost | 6,498 | 6,489 |
Five years through ten years, estimated fair value | 6,624 | 6,567 |
Residential Mortgage Backed Securities [Member] | ||
U. S. Government agency securities maturing: | ||
Residential mortgage backed securities, amortized cost | 256,196 | 241,120 |
Residential mortgage backed securities, estimated fair value | 255,663 | 240,320 |
US States and Political Subdivisions Debt Securities [Member] | ||
U. S. Government agency securities maturing: | ||
One year or less, amortized cost | 1,530 | 2,410 |
One year or less, estimated fair value | 1,534 | 2,438 |
After one year through five years, amortized cost | 39,733 | 47,038 |
After one year through five years, estimated fair value | 41,838 | 49,607 |
Five years through ten years, amortized cost | 44,028 | 54,983 |
Five years through ten years, estimated fair value | 44,081 | 56,927 |
After ten years | 5,302 | 2,552 |
After ten years | 5,385 | 2,740 |
Corporate Debt Securities [Member] | ||
U. S. Government agency securities maturing: | ||
After one year through five years, amortized cost | 15,100 | |
After one year through five years, estimated fair value | 15,041 | |
Equity Investment Other [Member] | ||
U. S. Government agency securities maturing: | ||
Residential mortgage backed securities, amortized cost | 396 | 396 |
Residential mortgage backed securities, estimated fair value | $ 464 | $ 417 |
Note 4 - Mortgage Banking Der36
Note 4 - Mortgage Banking Derivative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Note 4 - Mortgage Banking Derivative (Details) [Line Items] | |||||
Derivative, Notional Amount | $ 48,600,000 | $ 25,300,000 | $ 48,600,000 | $ 25,300,000 | |
Derivative Liability | 15,000 | 15,000 | $ 250,000 | ||
Other Assets [Member] | |||||
Note 4 - Mortgage Banking Derivative (Details) [Line Items] | |||||
Derivative Asset | 165 | 223,000 | 165 | 223,000 | |
Other Liabilities [Member] | |||||
Note 4 - Mortgage Banking Derivative (Details) [Line Items] | |||||
Derivative Liability | 15,000 | 159,000 | 15,000 | 159,000 | |
Other Noninterest Income [Member] | |||||
Note 4 - Mortgage Banking Derivative (Details) [Line Items] | |||||
Loss on Derivative Instruments, Pretax | 101,000 | 159,000 | 71,000 | 159,000 | |
Gain on Derivative Instruments, Pretax | $ 147,000 | $ 241,000 | $ 318,000 | $ 241,000 |
Note 5 - Loans and Allowance 37
Note 5 - Loans and Allowance for Credit Losses (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Loans and Leases Receivable, Deferred Income (in Dollars) | $ 16,100 | $ 14,500 | $ 16,100 | $ 14,500 | $ 15,600 |
Servicing Asset at Fair Value, Amount (in Dollars) | $ 31,400 | $ 31,400 | 67,900 | ||
Minimum Debt Service Coverage | 1.15 | 1.15 | |||
Stress Test Assumption, Increase in Interest Rates | 2.00% | 2.00% | |||
Financing Receivable, Net (in Dollars) | $ 4,550,897 | $ 4,550,897 | $ 4,312,399 | ||
Loan Percent | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans (in Dollars) | $ 504 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method (in Dollars) | $ 9 | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | |||
Financing Receivable, Modifications, Number of Contracts Outstanding | 7 | 7 | 6 | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 | 0 | ||
Performing Financial Instruments [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment (in Dollars) | $ 13,700 | $ 7,900 | $ 13,700 | $ 7,900 | $ 13,500 |
Commercial Real Estate Portfolio Segment [Member] | Owner Occupied and Construction [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Percent of Loan Portfolio | 12.00% | 12.00% | |||
Commercial Real Estate Portfolio Segment [Member] | ADC Loans [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Financing Receivable, Net (in Dollars) | $ 955,800 | $ 955,800 | |||
Loan Percent | 41.00% | 41.00% | |||
Commercial Real Estate and Real Estate Construction Loans [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Percent of Loan Portfolio | 73.00% | 73.00% | |||
Commercial Real Estate and Real Estate Construction Loans [Member] | Excluding Owner Occupied Commercial Real Estate and Commercial Construction Loans [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Percent of Loan Portfolio | 61.00% | 61.00% | |||
Commercial Portfolio Segment [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Percent of Loan Portfolio | 21.00% | 21.00% | |||
Financing Receivable, Net (in Dollars) | $ 960,506 | $ 960,506 | $ 916,226 | ||
Loan Percent | 21.00% | 22.00% | 21.00% | 22.00% | 21.00% |
Financing Receivable, Modifications, Number of Contracts Outstanding | 2 | 2 | 1 | ||
Commercial Portfolio Segment [Member] | SBA Loans [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Percent of Loan Portfolio | 1.00% | 1.00% | |||
Consumer Portfolio Segment [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Percent of Loan Portfolio | 3.00% | 3.00% | |||
Residential Portfolio Segment [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Financing Receivable, Net (in Dollars) | $ 149,842 | $ 149,842 | $ 148,018 | ||
Loan Percent | 3.00% | 4.00% | 3.00% | 4.00% | 3.00% |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Percent of Loan Portfolio | 3.00% | 3.00% | |||
Fidelity [Member] | Nonperforming Financial Instruments [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net (in Dollars) | $ 1,900 | $ 1,900 | |||
Virginia Heritage Bank [Member] | Nonperforming Financial Instruments [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net (in Dollars) | $ 3,000 | $ 3,000 | |||
Maximum [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Loan to Value Ratio | 80.00% | 80.00% | |||
Loan Period | 90 days | ||||
Maximum [Member] | Commercial Portfolio Segment [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Loan Period | 10 years | ||||
Amortization Term | 25 years | ||||
Maximum [Member] | Commercial Portfolio Segment [Member] | Land Acquisition, Development, and Construction Loans [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Loan Period | 24 months | ||||
Maximum [Member] | Commercial Portfolio Segment [Member] | Preferred Term [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Loan Period | 7 years | ||||
Maximum [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Loan Period | 10 years | ||||
Maximum [Member] | Residential Portfolio Segment [Member] | Land Acquisition, Development, and Construction Loans [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Loan Period | 36 months | ||||
Minimum [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Interest Rate Adjustment Frequency | 5 years | ||||
Loan Period | 30 days | ||||
Minimum [Member] | Commercial Portfolio Segment [Member] | Preferred Term [Member] | |||||
Note 5 - Loans and Allowance for Credit Losses (Details) [Line Items] | |||||
Loan Period | 5 years |
Note 5 - Loans and Allowance 38
Note 5 - Loans and Allowance for Credit Losses (Details) - Loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | $ 4,550,897 | $ 4,312,399 | $ 3,279,429 |
Loans, percent | 100.00% | 100.00% | 100.00% |
Less: Allowance for Credit Losses | $ (48,921) | $ (46,075) | $ (43,552) |
Net loans | 4,501,976 | 4,266,324 | 3,235,877 |
Commercial Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | $ 960,506 | $ 916,226 | $ 726,611 |
Loans, percent | 21.00% | 21.00% | 22.00% |
Less: Allowance for Credit Losses | $ (12,911) | $ (11,413) | |
Income Producing Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | $ 1,863,583 | $ 1,703,172 | $ 1,302,479 |
Loans, percent | 41.00% | 40.00% | 40.00% |
Less: Allowance for Credit Losses | $ (12,411) | $ (10,745) | |
Owner Occupied Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | $ 497,834 | $ 461,581 | $ 330,073 |
Loans, percent | 11.00% | 11.00% | 10.00% |
Less: Allowance for Credit Losses | $ (3,113) | $ (3,273) | |
Residential Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | $ 149,842 | $ 148,018 | $ 123,587 |
Loans, percent | 3.00% | 3.00% | 4.00% |
Less: Allowance for Credit Losses | $ (1,082) | $ (958) | |
Construction Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | 955,751 | $ 851,464 | 680,632 |
Less: Allowance for Credit Losses | (17,633) | (15,487) | |
Construction Portfolio Segment [Member] | Commercial and Residential Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | $ 901,617 | $ 793,432 | $ 642,264 |
Loans, percent | 20.00% | 18.00% | 20.00% |
Construction Portfolio Segment [Member] | Commercial and Industrial Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | $ 54,134 | $ 58,032 | $ 38,368 |
Loans, percent | 1.00% | 1.00% | 1.00% |
Home Equity Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | $ 118,544 | $ 122,536 | $ 108,931 |
Loans, percent | 3.00% | 3.00% | 3.00% |
Less: Allowance for Credit Losses | $ (1,496) | $ (1,331) | |
Other Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans, amount | 4,837 | $ 109,402 | 7,116 |
Loans, percent | 3.00% | ||
Less: Allowance for Credit Losses | $ (275) | $ (345) |
Note 5 - Loans and Allowance 39
Note 5 - Loans and Allowance for Credit Losses (Details) - Allowance for Credit Losses by Portfolio Segment - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Allowance for credit losses: | |||||
Balance at beginning of period | $ 47,779 | $ 42,018 | $ 46,075 | $ 40,921 | |
Loans charged-off | (2,402) | (1,690) | (4,208) | (2,815) | |
Recoveries of loans previously charged-off | 73 | 90 | 273 | 378 | |
Net loan charged-off | (2,329) | (1,600) | (3,935) | (2,437) | |
Provision for credit losses | 3,471 | 3,134 | 6,781 | 5,068 | |
Ending balance | 48,921 | 43,552 | 48,921 | 43,552 | |
Allowance for credit losses: | |||||
Individually evaluated for impairment | 6,039 | 7,148 | 6,039 | 7,148 | |
Collectively evaluated for impairment | 42,882 | 36,404 | 42,882 | 36,404 | |
Ending balance-Allowance for credit losses | 48,921 | 43,552 | 48,921 | 43,552 | $ 46,075 |
Commercial Portfolio Segment [Member] | |||||
Allowance for credit losses: | |||||
Balance at beginning of period | 13,777 | 11,420 | 13,222 | 9,780 | |
Loans charged-off | (2,307) | (1,378) | (3,305) | (1,651) | |
Recoveries of loans previously charged-off | 24 | 72 | 75 | 283 | |
Net loan charged-off | (2,283) | (1,306) | (3,230) | (1,368) | |
Provision for credit losses | 1,417 | 1,299 | 2,919 | 3,001 | |
Ending balance | 12,911 | 11,413 | 12,911 | 11,413 | |
Allowance for credit losses: | |||||
Individually evaluated for impairment | 4,066 | 3,501 | 4,066 | 3,501 | |
Collectively evaluated for impairment | 8,845 | 7,912 | 8,845 | 7,912 | |
Ending balance-Allowance for credit losses | 12,911 | 11,413 | 12,911 | 11,413 | |
Income Producing Portfolio Segment [Member] | |||||
Allowance for credit losses: | |||||
Balance at beginning of period | 11,652 | 10,590 | 11,442 | 10,359 | |
Loans charged-off | (79) | (397) | |||
Recoveries of loans previously charged-off | 18 | 4 | 18 | 4 | |
Net loan charged-off | (61) | 4 | (379) | 4 | |
Provision for credit losses | 820 | 151 | 1,348 | 382 | |
Ending balance | 12,411 | 10,745 | 12,411 | 10,745 | |
Allowance for credit losses: | |||||
Individually evaluated for impairment | 491 | 732 | 491 | 732 | |
Collectively evaluated for impairment | 11,920 | 10,013 | 11,920 | 10,013 | |
Ending balance-Allowance for credit losses | 12,411 | 10,745 | 12,411 | 10,745 | |
Owner Occupied Portfolio Segment [Member] | |||||
Allowance for credit losses: | |||||
Balance at beginning of period | 3,127 | 3,195 | 2,954 | 3,899 | |
Loans charged-off | (35) | ||||
Recoveries of loans previously charged-off | 1 | 7 | 2 | 7 | |
Net loan charged-off | 1 | 7 | 2 | (28) | |
Provision for credit losses | (15) | 71 | 157 | (598) | |
Ending balance | 3,113 | 3,273 | 3,113 | 3,273 | |
Allowance for credit losses: | |||||
Individually evaluated for impairment | 386 | 1,102 | 386 | 1,102 | |
Collectively evaluated for impairment | 2,727 | 2,171 | 2,727 | 2,171 | |
Ending balance-Allowance for credit losses | 3,113 | 3,273 | 3,113 | 3,273 | |
Residential Portfolio Segment [Member] | |||||
Allowance for credit losses: | |||||
Balance at beginning of period | 1,055 | 754 | 1,259 | 944 | |
Loans charged-off | (28) | (90) | |||
Recoveries of loans previously charged-off | 1 | 3 | |||
Net loan charged-off | 1 | (28) | 3 | (90) | |
Provision for credit losses | 26 | 232 | (180) | 104 | |
Ending balance | 1,082 | 958 | 1,082 | 958 | |
Allowance for credit losses: | |||||
Collectively evaluated for impairment | 1,082 | 958 | 1,082 | 958 | |
Ending balance-Allowance for credit losses | 1,082 | 958 | 1,082 | 958 | |
Construction Portfolio Segment [Member] | |||||
Allowance for credit losses: | |||||
Balance at beginning of period | 16,383 | 14,179 | 15,625 | 13,934 | |
Loans charged-off | (225) | (806) | |||
Recoveries of loans previously charged-off | 9 | 6 | 104 | 71 | |
Net loan charged-off | 9 | (219) | 104 | (735) | |
Provision for credit losses | 1,241 | 1,527 | 1,904 | 2,288 | |
Ending balance | 17,633 | 15,487 | 17,633 | 15,487 | |
Allowance for credit losses: | |||||
Individually evaluated for impairment | 803 | 1,605 | 803 | 1,605 | |
Collectively evaluated for impairment | 16,830 | 13,882 | 16,830 | 13,882 | |
Ending balance-Allowance for credit losses | 17,633 | 15,487 | 17,633 | 15,487 | |
Home Equity Portfolio Segment [Member] | |||||
Allowance for credit losses: | |||||
Balance at beginning of period | 1,509 | 1,507 | 1,469 | 1,871 | |
Loans charged-off | (419) | (149) | |||
Recoveries of loans previously charged-off | 2 | 1 | 4 | 6 | |
Net loan charged-off | 2 | 1 | (415) | (143) | |
Provision for credit losses | (15) | (177) | 442 | (397) | |
Ending balance | 1,496 | 1,331 | 1,496 | 1,331 | |
Allowance for credit losses: | |||||
Individually evaluated for impairment | 293 | 208 | 293 | 208 | |
Collectively evaluated for impairment | 1,203 | 1,123 | 1,203 | 1,123 | |
Ending balance-Allowance for credit losses | 1,496 | 1,331 | 1,496 | 1,331 | |
Other Consumer Portfolio Segment [Member] | |||||
Allowance for credit losses: | |||||
Balance at beginning of period | 276 | 373 | 104 | 134 | |
Loans charged-off | (16) | (59) | (87) | (84) | |
Recoveries of loans previously charged-off | 18 | 67 | 7 | ||
Net loan charged-off | 2 | (59) | (20) | (77) | |
Provision for credit losses | (3) | 31 | 191 | 288 | |
Ending balance | 275 | 345 | 275 | 345 | |
Allowance for credit losses: | |||||
Collectively evaluated for impairment | 275 | 345 | 275 | 345 | |
Ending balance-Allowance for credit losses | $ 275 | $ 345 | $ 275 | $ 345 |
Note 5 - Loans and Allowance 40
Note 5 - Loans and Allowance for Credit Losses (Details) - Recorded Investment in Loans by Impairment Method - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Recorded investment in loans: | |||
Individually evaluated for impairment | $ 40,960 | $ 45,310 | $ 36,991 |
Collectively evaluated for impairment | 4,509,937 | 4,267,089 | 3,242,438 |
Commercial Portfolio Segment [Member] | |||
Recorded investment in loans: | |||
Individually evaluated for impairment | 17,966 | 17,612 | 17,405 |
Collectively evaluated for impairment | 942,540 | 898,614 | 709,206 |
Income Producing Portfolio Segment [Member] | |||
Recorded investment in loans: | |||
Individually evaluated for impairment | 2,371 | 5,109 | 2,913 |
Collectively evaluated for impairment | 1,861,212 | 1,698,063 | 1,299,566 |
Owner Occupied Portfolio Segment [Member] | |||
Recorded investment in loans: | |||
Individually evaluated for impairment | 1,827 | 6,891 | 3,230 |
Collectively evaluated for impairment | 496,007 | 454,690 | 326,843 |
Residential Portfolio Segment [Member] | |||
Recorded investment in loans: | |||
Collectively evaluated for impairment | 149,842 | 148,018 | 123,587 |
Construction Portfolio Segment [Member] | |||
Recorded investment in loans: | |||
Individually evaluated for impairment | 17,891 | 14,241 | 12,882 |
Collectively evaluated for impairment | 937,860 | 837,223 | 667,750 |
Home Equity Portfolio Segment [Member] | |||
Recorded investment in loans: | |||
Individually evaluated for impairment | 887 | 1,398 | 561 |
Collectively evaluated for impairment | 117,657 | 121,138 | 108,370 |
Other Consumer Portfolio Segment [Member] | |||
Recorded investment in loans: | |||
Individually evaluated for impairment | 18 | 59 | |
Collectively evaluated for impairment | $ 4,819 | $ 109,343 | $ 7,116 |
Note 5 - Loans and Allowance 41
Note 5 - Loans and Allowance for Credit Losses (Details) - Loans and Leases by Credit Quality Indicator - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | $ 4,550,897 | $ 4,312,399 | $ 3,279,429 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 4,452,306 | 4,202,744 | 3,186,340 |
Watch and Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 57,631 | 64,345 | 56,098 |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 40,960 | 45,310 | 36,991 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 960,506 | 916,226 | 726,611 |
Commercial Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 920,429 | 875,102 | 695,191 |
Commercial Portfolio Segment [Member] | Watch and Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 22,111 | 23,512 | 14,015 |
Commercial Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 17,966 | 17,612 | 17,405 |
Income Producing Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 1,863,583 | 1,703,172 | 1,302,479 |
Income Producing Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 1,837,021 | 1,679,101 | 1,286,730 |
Income Producing Portfolio Segment [Member] | Watch and Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 24,191 | 18,962 | 12,836 |
Income Producing Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 2,371 | 5,109 | 2,913 |
Owner Occupied Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 497,834 | 461,581 | 330,073 |
Owner Occupied Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 487,922 | 445,013 | 313,523 |
Owner Occupied Portfolio Segment [Member] | Watch and Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 8,085 | 9,677 | 13,320 |
Owner Occupied Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 1,827 | 6,891 | 3,230 |
Residential Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 149,842 | 148,018 | 123,587 |
Residential Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 149,101 | 147,262 | 122,681 |
Residential Portfolio Segment [Member] | Watch and Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 741 | 756 | 906 |
Construction Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 955,751 | 851,464 | 680,632 |
Construction Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 937,069 | 827,503 | 654,631 |
Construction Portfolio Segment [Member] | Watch and Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 791 | 9,720 | 13,119 |
Construction Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 17,891 | 14,241 | 12,882 |
Home Equity Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 118,544 | 122,536 | 108,931 |
Home Equity Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 115,945 | 119,420 | 106,468 |
Home Equity Portfolio Segment [Member] | Watch and Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 1,712 | 1,718 | 1,902 |
Home Equity Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 887 | 1,398 | 561 |
Other Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 4,837 | 109,402 | 7,116 |
Other Consumer Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | 4,819 | 109,343 | $ 7,116 |
Other Consumer Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable Net of Deferred Income | $ 18 | $ 59 |
Note 5 - Loans and Allowance 42
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans [Line Items] | ||||
Nonaccrual loan, recorded investment | [1],[2] | $ 14,871 | $ 22,443 | $ 22,507 |
Commercial Portfolio Segment [Member] | ||||
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans [Line Items] | ||||
Nonaccrual loan, recorded investment | 9,684 | 12,975 | 8,671 | |
Income Producing Portfolio Segment [Member] | ||||
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans [Line Items] | ||||
Nonaccrual loan, recorded investment | 2,062 | 2,645 | 2,676 | |
Owner Occupied Portfolio Segment [Member] | ||||
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans [Line Items] | ||||
Nonaccrual loan, recorded investment | 1,297 | 1,324 | 3,230 | |
Residential Portfolio Segment [Member] | ||||
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans [Line Items] | ||||
Nonaccrual loan, recorded investment | 338 | 346 | 650 | |
Construction Portfolio Segment [Member] | ||||
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans [Line Items] | ||||
Nonaccrual loan, recorded investment | 585 | 3,697 | 6,877 | |
Home Equity Portfolio Segment [Member] | ||||
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans [Line Items] | ||||
Nonaccrual loan, recorded investment | 887 | 1,398 | $ 403 | |
Other Consumer Portfolio Segment [Member] | ||||
Note 5 - Loans and Allowance for Credit Losses (Details) - Nonaccrual Loans [Line Items] | ||||
Nonaccrual loan, recorded investment | $ 18 | $ 58 | ||
[1] | Excludes troubled debt restructurings ("TDRs") that were performing under their restructured terms totaling $13.7 million at June 30,2015, $13.5 million at December 31, 2014 and $7.9 million at June 30, 2014. | |||
[2] | Gross interest income of $504 thousand would have been recorded in 2015 if nonaccrual loans shown above had been current and inaccordance with their original terms, while interest actually recorded on such loans was $9 thousand. See Note 1 to the consolidatedfinancial statements for a description of the Company's policy for placing loans on nonaccrual status. |
Note 5 - Loans and Allowance 43
Note 5 - Loans and Allowance for Credit Losses (Details) - Loans Past Due - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | $ 35,580 | $ 38,214 |
Current loans | 4,515,317 | 4,274,185 |
Total recorded investment in loans | 4,550,897 | 4,312,399 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 12,799 | 4,703 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 7,910 | 11,068 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 14,871 | 22,443 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 12,723 | 18,512 |
Current loans | 947,783 | 897,714 |
Total recorded investment in loans | 960,506 | 916,226 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 2,056 | 1,505 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 983 | 4,032 |
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 9,684 | 12,975 |
Income Producing Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 9,962 | 9,846 |
Current loans | 1,853,621 | 1,693,326 |
Total recorded investment in loans | 1,863,583 | 1,703,172 |
Income Producing Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,669 | 1,825 |
Income Producing Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 6,231 | 5,376 |
Income Producing Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 2,062 | 2,645 |
Owner Occupied Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,828 | 2,627 |
Current loans | 496,006 | 458,954 |
Total recorded investment in loans | 497,834 | 461,581 |
Owner Occupied Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 531 | 1,089 |
Owner Occupied Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 214 | |
Owner Occupied Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,297 | 1,324 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,963 | 346 |
Current loans | 147,879 | 147,672 |
Total recorded investment in loans | 149,842 | 148,018 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,625 | |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 338 | 346 |
Construction Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 7,390 | 3,697 |
Current loans | 948,361 | 847,767 |
Total recorded investment in loans | 955,751 | 851,464 |
Construction Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 6,805 | |
Construction Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 585 | 3,697 |
Home Equity Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,528 | 2,763 |
Current loans | 117,016 | 119,773 |
Total recorded investment in loans | 118,544 | 122,536 |
Home Equity Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 641 | 1,365 |
Home Equity Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 887 | 1,398 |
Other Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 186 | 423 |
Current loans | 4,651 | 108,979 |
Total recorded investment in loans | 4,837 | 109,402 |
Other Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 113 | 284 |
Other Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 55 | 81 |
Other Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | $ 18 | $ 58 |
Note 5 - Loans and Allowance 44
Note 5 - Loans and Allowance for Credit Losses (Details) - Impaired Loans - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | $ 32,208 | $ 32,986 | $ 37,420 |
Recorded Investment With No Allowance | 11,745 | 7,081 | 20,454 |
Recorded Investment With Allowance | 16,777 | 23,332 | 15,491 |
Total Recorded Investment | 28,522 | 30,413 | 35,945 |
Related Allowance | 6,039 | 7,148 | 8,064 |
Interest Income Recognized | 9 | ||
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 12,948 | 9,771 | 14,075 |
Recorded Investment With No Allowance | 1,558 | 348 | 1,603 |
Recorded Investment With Allowance | 8,397 | 8,323 | 11,372 |
Total Recorded Investment | 9,955 | 8,671 | 12,975 |
Related Allowance | 4,066 | 3,501 | 5,334 |
Income Producing Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 10,545 | 6,416 | 10,869 |
Recorded Investment With No Allowance | 8,712 | 1,512 | 8,952 |
Recorded Investment With Allowance | 1,140 | 4,529 | 1,542 |
Total Recorded Investment | 9,852 | 6,041 | 10,494 |
Related Allowance | 491 | 732 | 751 |
Owner Occupied Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 1,831 | 3,230 | 1,889 |
Recorded Investment With No Allowance | 1,002 | 99 | 1,038 |
Recorded Investment With Allowance | 829 | 3,131 | 851 |
Total Recorded Investment | 1,831 | 3,230 | 1,889 |
Related Allowance | 386 | 1,102 | 577 |
Residential Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 338 | 650 | 346 |
Recorded Investment With No Allowance | 338 | 650 | 346 |
Total Recorded Investment | 338 | 650 | 346 |
Construction Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 5,641 | 12,516 | 8,785 |
Recorded Investment With No Allowance | 4,347 | 8,176 | |
Recorded Investment With Allowance | 5,641 | 7,071 | 609 |
Total Recorded Investment | 5,641 | 11,418 | 8,785 |
Related Allowance | 803 | 1,605 | 927 |
Home Equity Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 887 | 403 | 1,398 |
Recorded Investment With No Allowance | 117 | 125 | 339 |
Recorded Investment With Allowance | 770 | 278 | 1,059 |
Total Recorded Investment | 887 | 403 | 1,398 |
Related Allowance | 293 | 208 | 430 |
Other Consumer Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 18 | 58 | |
Recorded Investment With No Allowance | 18 | ||
Recorded Investment With Allowance | 58 | ||
Total Recorded Investment | 18 | 58 | |
Related Allowance | 45 | ||
Quarter to Date [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 30,767 | 33,055 | 36,584 |
Interest Income Recognized | 145 | 95 | 691 |
Quarter to Date [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 10,606 | 8,873 | 14,203 |
Interest Income Recognized | 9 | 3 | 20 |
Quarter to Date [Member] | Income Producing Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 9,914 | 5,841 | 8,202 |
Interest Income Recognized | 36 | 43 | 196 |
Quarter to Date [Member] | Owner Occupied Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 1,849 | 5,277 | 2,696 |
Quarter to Date [Member] | Residential Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 340 | 711 | 348 |
Quarter to Date [Member] | Construction Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 7,156 | 11,822 | 10,113 |
Interest Income Recognized | 99 | 49 | 436 |
Quarter to Date [Member] | Home Equity Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 888 | 501 | 993 |
Interest Income Recognized | 32 | ||
Quarter to Date [Member] | Other Consumer Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 14 | 30 | 29 |
Interest Income Recognized | 1 | 7 | |
Year to Date [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 32,493 | 35,773 | 36,961 |
Interest Income Recognized | 279 | 633 | 1,650 |
Year to Date [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 11,396 | 11,032 | 13,681 |
Interest Income Recognized | 9 | 3 | 251 |
Year to Date [Member] | Income Producing Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 10,107 | 5,861 | 7,021 |
Interest Income Recognized | 71 | 78 | 203 |
Year to Date [Member] | Owner Occupied Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 1,862 | 5,335 | 3,986 |
Interest Income Recognized | 6 | ||
Year to Date [Member] | Residential Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 342 | 769 | 529 |
Year to Date [Member] | Construction Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 7,699 | 12,192 | 10,967 |
Interest Income Recognized | 198 | 552 | 1,147 |
Year to Date [Member] | Home Equity Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 1,058 | 541 | 747 |
Interest Income Recognized | 36 | ||
Year to Date [Member] | Other Consumer Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 29 | $ 43 | 30 |
Interest Income Recognized | $ 1 | $ 7 |
Note 5 - Loans and Allowance 45
Note 5 - Loans and Allowance for Credit Losses (Details) - Troubled Debt Restructurings $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 7 | 6 |
TDRs | $ 13,871 | $ 13,729 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 2 | 1 |
TDRs | $ 491 | $ 227 |
Income Producing Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 3 | 3 |
TDRs | $ 7,790 | $ 7,849 |
Owner Occupied Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1 | 1 |
TDRs | $ 534 | $ 565 |
Construction Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1 | 1 |
TDRs | $ 5,056 | $ 5,088 |
Performing Financial Instruments [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs | 13,652 | 13,502 |
Performing Financial Instruments [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs | 272 | |
Performing Financial Instruments [Member] | Income Producing Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs | 7,790 | 7,849 |
Performing Financial Instruments [Member] | Owner Occupied Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs | 534 | 565 |
Performing Financial Instruments [Member] | Construction Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs | 5,056 | 5,088 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs | 219 | 227 |
Nonperforming Financial Instruments [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs | $ 219 | $ 227 |
Note 6. Interest Rate Swap De46
Note 6. Interest Rate Swap Derivatives (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Note 6. Interest Rate Swap Derivatives (Details) [Line Items] | ||||
Derivative, Notional Amount | $ 48,600,000 | $ 25,300,000 | $ 48,600,000 | $ 25,300,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | |||
Interest Expense | $ 4,873,000 | $ 2,739,000 | $ 9,607,000 | $ 5,569,000 |
Interest Rate Swap [Member] | ||||
Note 6. Interest Rate Swap Derivatives (Details) [Line Items] | ||||
Derivative, Number of Instruments Held | 3 | 3 | ||
Derivative, Notional Amount | $ 250,000,000 | $ 250,000,000 | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | |||
Scenario, Forecast [Member] | ||||
Note 6. Interest Rate Swap Derivatives (Details) [Line Items] | ||||
Interest Expense | $ 623,000 |
Note 6. Interest Rate Swap De47
Note 6. Interest Rate Swap Derivatives (Details) - Fair values of Derivative - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative [Line Items] | ||
Notional amount | $ 48,600 | $ 25,300 |
Interest Rate Swap 1 [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Notional amount | 75,000 | |
Fair value | $ 521 | |
Pay rate | 1.71% | |
Maturity | Mar. 31, 2020 | |
Interest Rate Swap 2 [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 100,000 | |
Fair value | $ 1,302 | |
Pay rate | 1.74% | |
Maturity | Apr. 15, 2021 | |
Interest Rate Swap 3 [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 75,000 | |
Fair value | $ 1,358 | |
Pay rate | 1.92% | |
Maturity | Mar. 31, 2022 |
Note 6. Interest Rate Swap De48
Note 6. Interest Rate Swap Derivatives (Details) - Pre-tax Net Gains (Losses) of the Company’s Cash Flow Hedges | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Ineffective portion recognized in income on derivatives | $ 0 |
Interest Rate Swap 1 [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of pre-tax gain {loss} recognized in OCI | $ 521,000 |
Effective portion amount of gain (loss) | |
Ineffective portion recognized in income on derivatives | |
Interest Rate Swap 2 [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of pre-tax gain {loss} recognized in OCI | $ 1,302,000 |
Interest Rate Swap 3 [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of pre-tax gain {loss} recognized in OCI | $ 1,358,000 |
Note 7 - Other Real Estate Ow49
Note 7 - Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | |||
Proceeds from Sale of Other Real Estate | $ 833 | $ 986 | $ 108 |
Gains (Losses) on Sales of Other Real Estate | $ (148) | $ (165) | $ (100) |
Note 7 - Other Real Estate Ow50
Note 7 - Other Real Estate Owned (Details) - Activity Within Other Real Estate Owned - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Activity Within Other Real Estate Owned [Abstract] | ||||
Balance beginning of period | $ 12,338 | $ 8,809 | $ 13,224 | $ 9,225 |
Real estate acquired from borrowers | 1,500 | 85 | 1,500 | 330 |
Valuation allowance | (51) | (750) | (505) | |
Properties sold | (3,123) | (3,259) | (207) | |
Balance end of period | $ 10,715 | $ 8,843 | $ 10,715 | $ 8,843 |
Note 8 - Net Income Per Commo51
Note 8 - Net Income Per Common Share (Details) - Net Income Per Common Share Calculation - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic: | ||||
Net income available to common shareholders (in Dollars) | $ 20,759 | $ 12,802 | $ 39,997 | $ 25,160 |
Average common shares outstanding | 33,367 | 25,982 | 32,231 | 25,955 |
Basic net income per common share (in Dollars per share) | $ 0.62 | $ 0.49 | $ 1.24 | $ 0.97 |
Diluted: | ||||
Adjustment for common share equivalents | 631 | 647 | 664 | 645 |
Average common shares outstanding-diluted | 33,998 | 26,629 | 32,895 | 26,600 |
Diluted net income per common share (in Dollars per share) | $ 0.61 | $ 0.48 | $ 1.22 | $ 0.95 |
Anti-dilutive shares | 13 | 21 | 13 | 21 |
Note 9 - Stock-Based Compensa52
Note 9 - Stock-Based Compensation (Details) | 1 Months Ended | 6 Months Ended | |||||
Mar. 31, 2015shares | Feb. 28, 2015shares | May. 31, 2011USD ($)shares | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Dec. 31, 2014shares | Dec. 31, 2013shares | |
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | 21,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 10,300,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | 8,200,000 | $ 538,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | 82,000 | 125,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 291,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 109 days | ||||||
Allocated Share-based Compensation Expense | $ | $ 2,407,000 | 1,915,000 | |||||
The Fidelity Plans [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 0 | ||||||
Virginia Heritage Plans [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 0 | ||||||
The 1998 Stock Option Plan [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 0 | ||||||
2006 Stock Plan [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 1,996,500 | ||||||
The 2011 ESPP [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 442,379 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | 550,000 | ||||||
Employee Stock Purchase Plan, Percentage of Market Value | 85.00% | ||||||
Salaries and Employee Benefits [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Allocated Share-based Compensation Expense | $ | $ 2,400,000 | $ 1,900,000 | |||||
Performance Shares [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number (in Shares) | 0 | ||||||
Restricted Stock [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 700 | 77,370 | 78,070 | 78,947 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Vesting Periods | 5 | 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares) | 392,267 | 507,774 | 509,336 | 614,580 | |||
Restricted Stock [Member] | 2006 Stock Plan [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 321 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares) | 392,267 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 8,100,000 | ||||||
Minimum [Member] | The 2011 ESPP [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year | ||||||
Minimum [Member] | Pay Period [Member] | The 2011 ESPP [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Amount Contributed To ESPP | $ | $ 10 | ||||||
Minimum Hours Per Week [Member] | The 2011 ESPP [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 20 hours | ||||||
Minimum Months Per Year [Member] | The 2011 ESPP [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 5 months | ||||||
Maximum [Member] | The 2011 ESPP [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | ||||||
Maximum [Member] | Offering Period [Member] | The 2011 ESPP [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Amount Contributed To ESPP | $ | $ 6,250 | ||||||
Maximum [Member] | Annually [Member] | The 2011 ESPP [Member] | |||||||
Note 9 - Stock-Based Compensation (Details) [Line Items] | |||||||
Amount Contributed To ESPP | $ | $ 25,000 |
Note 9 - Stock-Based Compensa53
Note 9 - Stock-Based Compensation (Details) - Changes in Shares Under Option Plans - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in Shares Under Option Plans [Abstract] | ||
Beginning balance | 759,683 | 503,834 |
Beginning balance | $ 11.36 | $ 10.41 |
Issued | 0 | 21,000 |
Issued | $ 32.77 | |
Exercised | (369,952) | (24,897) |
Exercised | $ 12.70 | $ 12.25 |
Forfeited | (1,650) | (110) |
Forfeited | $ 15.48 | $ 5.76 |
Expired | (8,007) | (408) |
Expired | $ 16.90 | $ 9.37 |
Ending balance | 380,074 | 499,419 |
Ending balance | $ 9.92 | $ 11.26 |
Note 9 - Stock-Based Compensa54
Note 9 - Stock-Based Compensation (Details) - Stock Options Outstanding and Exercisable - $ / shares | 6 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Stock options outstanding (in Shares) | 380,074 | 759,683 | 499,419 | 503,834 |
Outstanding options, weighted-average exercise price | $ 9.92 | $ 11.36 | $ 11.26 | $ 10.41 |
Outstanding options, weighted-average remaining contractual life | 3 years 233 days | |||
Exercisable options, stock options exercisable (in Shares) | 300,134 | |||
Exercisable options, weighted-average exercise price | $ 9.71 | |||
Range 1 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding options, exercise price range, lower limit | 5.76 | |||
Outstanding options, exercise price range, upper limit | $ 9.21 | |||
Stock options outstanding (in Shares) | 223,329 | |||
Outstanding options, weighted-average exercise price | $ 5.76 | |||
Outstanding options, weighted-average remaining contractual life | 3 years 193 days | |||
Exercisable options, exercise price range, lower limit | $ 5.76 | |||
Exercisable options, exercise price range, upper limit | $ 9.21 | |||
Exercisable options, stock options exercisable (in Shares) | 166,419 | |||
Exercisable options, weighted-average exercise price | $ 5.76 | |||
Range 2 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding options, exercise price range, lower limit | 9.22 | |||
Outstanding options, exercise price range, upper limit | $ 15.47 | |||
Stock options outstanding (in Shares) | 110,305 | |||
Outstanding options, weighted-average exercise price | $ 12.38 | |||
Outstanding options, weighted-average remaining contractual life | 2 years 167 days | |||
Exercisable options, exercise price range, lower limit | $ 9.22 | |||
Exercisable options, exercise price range, upper limit | $ 15.47 | |||
Exercisable options, stock options exercisable (in Shares) | 103,305 | |||
Exercisable options, weighted-average exercise price | $ 12.48 | |||
Range 3 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding options, exercise price range, lower limit | 15.48 | |||
Outstanding options, exercise price range, upper limit | $ 22.66 | |||
Stock options outstanding (in Shares) | 22,706 | |||
Outstanding options, weighted-average exercise price | $ 19.07 | |||
Outstanding options, weighted-average remaining contractual life | 7 years 361 days | |||
Exercisable options, exercise price range, lower limit | $ 15.48 | |||
Exercisable options, exercise price range, upper limit | $ 22.66 | |||
Exercisable options, stock options exercisable (in Shares) | 19,076 | |||
Exercisable options, weighted-average exercise price | $ 19.28 | |||
Range 4 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding options, exercise price range, lower limit | 22.67 | |||
Outstanding options, exercise price range, upper limit | $ 32.36 | |||
Stock options outstanding (in Shares) | 23,734 | |||
Outstanding options, weighted-average exercise price | $ 28.82 | |||
Outstanding options, weighted-average remaining contractual life | 5 years 350 days | |||
Exercisable options, exercise price range, lower limit | $ 22.67 | |||
Exercisable options, exercise price range, upper limit | $ 32.36 | |||
Exercisable options, stock options exercisable (in Shares) | 11,334 | |||
Exercisable options, weighted-average exercise price | $ 26.27 |
Note 9 - Stock-Based Compensa55
Note 9 - Stock-Based Compensation (Details) - Fair Value of Each Stock Option Grant - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value of Each Stock Option Grant [Abstract] | |||
Expected volatility | 34.25% | 34.12% | |
Weighted-Average volatility | 34.25% | 34.12% | |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 9 years 146 days | 7 years 6 months | |
Risk-free rate | 2.26% | 1.31% | |
Weighted-average fair value (grant date) (in Dollars per share) | $ 13.49 | $ 7.83 |
Note 9 - Stock-Based Compensa56
Note 9 - Stock-Based Compensation (Details) - Unvested Restricted Stock Award Grants - Restricted Stock [Member] - $ / shares | 1 Months Ended | 6 Months Ended | ||
Mar. 31, 2015 | Feb. 28, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Note 9 - Stock-Based Compensation (Details) - Unvested Restricted Stock Award Grants [Line Items] | ||||
Unvested at beginning | 509,336 | 614,580 | ||
Unvested at beginning | $ 21.58 | $ 18.71 | ||
Issued | 700 | 77,370 | 78,070 | 78,947 |
Issued | $ 36.06 | $ 33.24 | ||
Forfeited | (1,209) | (832) | ||
Forfeited | $ 28.67 | $ 23.59 | ||
Vested | (193,930) | (184,921) | ||
Vested | $ 20.66 | $ 17.54 | ||
Unvested at end | 392,267 | 507,774 | ||
Unvested at end | $ 24.89 | $ 21.39 |
Note 10 - Other Comprehensive57
Note 10 - Other Comprehensive Income (Details) - Components of Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Components of Other Comprehensive Income (Loss) [Abstract] | ||||
Net unrealized gain (loss) on securities available-for-sale, before tax | $ (3,405) | $ 3,900 | $ (187) | $ 8,605 |
Net unrealized gain (loss) on securities available-for-sale, tax effect | (1,362) | 1,559 | (75) | 3,442 |
Net unrealized gain (loss) on securities available-for-sale, net of tax | (2,043) | 2,341 | (112) | 5,163 |
Net unrealized gain on derivatives-before tax | 3,181 | 3,181 | ||
Net unrealized gain on derivatives-tax effect | 1,272 | 1,272 | ||
Net unrealized gain on derivatives-net of tax | 1,909 | 1,909 | ||
Less: Reclassification adjustment for net gains included in net income-before tax | (2) | (2,164) | (10) | |
Less: Reclassification adjustment for net gains included in net income-tax effect | (1) | (866) | (4) | |
Less: Reclassification adjustment for net gains included in net income-net of tax | (1) | (1,298) | (6) | |
Other Comprehensive Income (Loss), before tax | (224) | 3,898 | 830 | 8,595 |
Other Comprehensive Income (Loss), tax effect | (90) | 1,558 | 331 | 3,438 |
Other Comprehensive Income (Loss), net of tax | $ (134) | $ 2,340 | $ 499 | $ 5,157 |
Note 10 - Other Comprehensive58
Note 10 - Other Comprehensive Income (Details) - Changes in Each Component of Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at Beginning of Period | $ 3,280 | $ (502) | $ 2,647 | $ (3,319) |
Three Months Ended June 30, 2014 | ||||
Other comprehensive income before reclassifications | (134) | 2,341 | 1,797 | 5,163 |
Amounts reclassified from accumulated other comprehensive income | (1) | (1,298) | (6) | |
Net other comprehensive income during period | (134) | 2,340 | 499 | 5,157 |
Balance at End of Period | 3,146 | 1,838 | 3,146 | 1,838 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at Beginning of Period | 3,280 | (502) | 2,647 | (3,319) |
Three Months Ended June 30, 2014 | ||||
Other comprehensive income before reclassifications | (134) | 2,341 | 1,797 | 5,163 |
Amounts reclassified from accumulated other comprehensive income | (1) | (1,298) | (6) | |
Net other comprehensive income during period | (134) | 2,340 | 499 | 5,157 |
Balance at End of Period | $ 3,146 | $ 1,838 | $ 3,146 | $ 1,838 |
Note 10 - Other Comprehensive59
Note 10 - Other Comprehensive Income (Details) - Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Realized gain on sale of investment securities | $ 2 | $ 2,164 | $ 10 |
(1) | (866) | (4) | |
Total Reclassifications for the Period | $ 1 | $ 1,298 | $ 6 |
Note 11 - Fair Value Measurem60
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value On a Recurring Basis - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investment securities available for sale: | ||
Available for Sale Securities | $ 559,738 | |
Loans Held for Sale Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 132,683 | $ 44,317 |
Mortgage Banking Derivative [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 165 | 146 |
Interest Rate Swap [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 3,181 | 426,806 |
US Government Agencies Debt Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 59,703 | 29,894 |
Residential Mortgage Backed Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 255,663 | 240,320 |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 92,838 | 111,712 |
Corporate Debt Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 15,041 | |
Equity Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 464 | 417 |
Fair Value, Inputs, Level 1 [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 245 | |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 198 | |
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 245 | 198 |
Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 559,109 | |
Fair Value, Inputs, Level 2 [Member] | Loans Held for Sale Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 132,683 | 44,317 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 3,181 | 426,243 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 59,703 | 29,894 |
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 255,663 | 240,320 |
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 92,838 | 111,712 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 15,041 | |
Fair Value, Inputs, Level 3 [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 384 | |
Fair Value, Inputs, Level 3 [Member] | Mortgage Banking Derivative [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 165 | 146 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | 365 | |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ||
Investment securities available for sale: | ||
Available for Sale Securities | $ 219 | $ 219 |
Note 11 - Fair Value Measurem61
Note 11 - Fair Value Measurements (Details) - Assets Measured at Fair Value Based on Significant Unobservable Inputs - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Assets: | ||
Beginning balance, assets | $ 365 | $ 219 |
Ending balance, assets | 384 | 365 |
Liabilities: | ||
Beginning balance, liabilities | (250) | 0 |
Realized gain (loss) included in earnings - net derivatives | 235 | (250) |
Principal redemption | 0 | |
Ending balance, liabilities | (15) | (250) |
Assets: | ||
Realized and unrealized gain (loss) included in earnings - net derivatives | 19 | 146 |
Principal redemption | 0 | |
Equity Investment Other [Member] | ||
Assets: | ||
Beginning balance, assets | 219 | 219 |
Ending balance, assets | 219 | 219 |
Assets: | ||
Realized and unrealized gain (loss) included in earnings - net derivatives | 0 | 0 |
Principal redemption | 0 | |
Derivative Assets and Liabilities [Member] | ||
Assets: | ||
Beginning balance, assets | 146 | 0 |
Ending balance, assets | 165 | 146 |
Liabilities: | ||
Beginning balance, liabilities | (250) | 0 |
Realized gain (loss) included in earnings - net derivatives | 235 | (250) |
Principal redemption | 0 | |
Ending balance, liabilities | (15) | (250) |
Assets: | ||
Realized and unrealized gain (loss) included in earnings - net derivatives | 19 | $ 146 |
Principal redemption | $ 0 |
Note 11 - Fair Value Measurem62
Note 11 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Impaired loans: | ||
Other real estate owned | $ 10,715 | $ 13,224 |
Total assets measured at fair value on a nonrecurring basis | 33,198 | 28,526 |
Commercial Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 5,889 | 7,952 |
Income Producing Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 9,361 | 1,902 |
Owner Occupied Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 1,445 | 824 |
Residential Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 338 | 346 |
Construction Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 4,838 | 3,297 |
Home Equity Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 594 | 968 |
Other Consumer Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 18 | 13 |
Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Other real estate owned | 10,715 | 9,184 |
Total assets measured at fair value on a nonrecurring basis | 14,413 | 10,673 |
Fair Value, Inputs, Level 2 [Member] | Commercial Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 1,675 | 781 |
Fair Value, Inputs, Level 2 [Member] | Income Producing Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 1,263 | 703 |
Fair Value, Inputs, Level 2 [Member] | Owner Occupied Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 725 | |
Fair Value, Inputs, Level 2 [Member] | Construction Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 35 | |
Fair Value, Inputs, Level 2 [Member] | Home Equity Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 5 | |
Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Other real estate owned | 4,040 | |
Total assets measured at fair value on a nonrecurring basis | 18,785 | 17,853 |
Fair Value, Inputs, Level 3 [Member] | Commercial Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 4,214 | 7,171 |
Fair Value, Inputs, Level 3 [Member] | Income Producing Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 8,098 | 1,199 |
Fair Value, Inputs, Level 3 [Member] | Owner Occupied Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 720 | 824 |
Fair Value, Inputs, Level 3 [Member] | Residential Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 338 | 346 |
Fair Value, Inputs, Level 3 [Member] | Construction Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 4,803 | 3,297 |
Fair Value, Inputs, Level 3 [Member] | Home Equity Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | 594 | 963 |
Fair Value, Inputs, Level 3 [Member] | Other Consumer Portfolio Segment [Member] | ||
Impaired loans: | ||
Impaired loans | $ 18 | $ 13 |
Note 11 - Fair Value Measurem63
Note 11 - Fair Value Measurements (Details) - Fair Values of Financial Instruments - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Assets | |||
Cash and due from banks, carrying value | $ 10,284 | $ 9,097 | $ 8,602 |
Cash and due from banks, fair value | 10,284 | 9,097 | |
Federal funds sold, carrying value | 6,276 | 3,516 | 9,480 |
Federal funds sold, fair value | 6,276 | 3,516 | 9,480 |
Interest bearing deposits with other banks, carrying value | 380,336 | 243,412 | 97,400 |
Interest bearing deposits with other banks, fair value | 380,336 | 243,412 | 97,400 |
Investment securities, carrying value | 423,709 | 382,343 | 378,990 |
Investment securities, fair value | 423,709 | 382,343 | 378,990 |
Federal Reserve and Federal Home Loan Bank stock, carrying value | 16,828 | 22,560 | |
Federal Reserve and Federal Home Loan Bank stock, fair value | 16,828 | 22,560 | |
Loans held for sale, carrying value | 132,683 | 44,317 | 35,411 |
Loans held for sale, fair value | 132,683 | 44,669 | |
Loans, carrying value | 4,550,897 | 4,312,399 | 3,279,429 |
Loans, fair value | 4,557,057 | 4,314,618 | |
Bank owned life insurance, carrying value | 57,889 | 56,594 | 40,361 |
Bank owned life insurance, fair value | 57,889 | 56,594 | 40,361 |
Annuity investment, carrying value | 12,146 | 11,277 | |
Annuity investment, fair value | 12,146 | 11,277 | |
Liabilities | |||
Noninterest bearing deposits | 4,825,433 | 4,310,768 | $ 3,367,927 |
Certificates of deposit | 795,124 | 688,741 | |
Certificates of deposit | 794,871 | 688,067 | |
Customer repurchase agreements | 53,394 | 61,120 | |
Customer repurchase agreements | 53,394 | 61,120 | |
Borrowings, carrying value | 127,444 | 280,420 | |
Borrowings, fair value | 127,476 | 281,958 | |
Mortgage banking derivatives-liabilities | 15 | 250 | |
Mortgage Banking Derivative [Member] | |||
Assets | |||
derivatives-asset, carrying value | 165 | 146 | |
derivatives-asset, fair value | 165 | 146 | |
Interest Rate Swap [Member] | |||
Assets | |||
derivatives-asset, carrying value | 3,181 | ||
derivatives-asset, fair value | 3,181 | ||
Noninterest-bearing Deposits [Member] | |||
Liabilities | |||
Noninterest bearing deposits | 1,370,590 | 1,175,799 | |
Noninterest bearing deposits | 1,370,590 | 1,175,799 | |
Interest-bearing Deposits [Member] | |||
Liabilities | |||
Noninterest bearing deposits | 2,659,719 | 2,446,228 | |
Noninterest bearing deposits | 3,454,590 | 3,134,295 | |
Fair Value, Inputs, Level 1 [Member] | |||
Assets | |||
Investment securities, carrying value | 245 | 198 | |
Investment securities, fair value | 245 | 198 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Cash and due from banks, fair value | 10,284 | 9,097 | |
Federal funds sold, carrying value | 6,276 | 3,516 | |
Federal funds sold, fair value | 6,276 | 3,516 | |
Interest bearing deposits with other banks, carrying value | 380,336 | 243,412 | |
Interest bearing deposits with other banks, fair value | 380,336 | 243,412 | |
Investment securities, carrying value | 423,245 | 381,926 | |
Investment securities, fair value | 423,245 | 381,926 | |
Federal Reserve and Federal Home Loan Bank stock, fair value | 16,828 | 22,560 | |
Loans held for sale, fair value | 132,683 | 44,669 | |
Loans, fair value | 3,698 | 1,489 | |
Bank owned life insurance, carrying value | 57,889 | 56,594 | |
Bank owned life insurance, fair value | 57,889 | 56,594 | |
Annuity investment, fair value | 12,146 | 11,277 | |
Liabilities | |||
Certificates of deposit | 794,871 | 688,067 | |
Customer repurchase agreements | 53,394 | 61,120 | |
Borrowings, fair value | 127,476 | 281,958 | |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||
Assets | |||
derivatives-asset, fair value | 3,181 | ||
Fair Value, Inputs, Level 2 [Member] | Noninterest-bearing Deposits [Member] | |||
Liabilities | |||
Noninterest bearing deposits | 1,370,590 | 1,175,799 | |
Fair Value, Inputs, Level 2 [Member] | Interest-bearing Deposits [Member] | |||
Liabilities | |||
Noninterest bearing deposits | 3,454,590 | 3,134,295 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets | |||
Investment securities, carrying value | 219 | 219 | |
Investment securities, fair value | 219 | 219 | |
Loans, fair value | 4,553,359 | 4,313,129 | |
Liabilities | |||
Mortgage banking derivatives-liabilities | 15 | 250 | |
Fair Value, Inputs, Level 3 [Member] | Mortgage Banking Derivative [Member] | |||
Assets | |||
derivatives-asset, fair value | $ 165 | $ 146 |
Note 12 - Supplemental Execut64
Note 12 - Supplemental Executive Retirement Plan (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Feb. 28, 2013USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 12 - Supplemental Executive Retirement Plan (Details) [Line Items] | ||||
Cash Surrender Value of Life Insurance | $ 12,146 | $ 12,146 | $ 11,277 | |
Supplemental Executive Retirement and Death Benefit Agreements [Member] | ||||
Note 12 - Supplemental Executive Retirement Plan (Details) [Line Items] | ||||
Time Period for Calculating Base Salary Under SERP Agreements | 5 years | |||
Retirement Age | 67 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 years | |||
Retirement Plan, Monthly Installments | 180 | |||
Defined Benefit Plan, Net Periodic Benefit Cost | 255 | 509 | ||
Purchased Fixed Annuity for Financing Retirement Benefits [Member] | Supplemental Executive Retirement and Death Benefit Agreements [Member] | ||||
Note 12 - Supplemental Executive Retirement Plan (Details) [Line Items] | ||||
Other Investments | $ 11,400 | |||
Purchased Fixed Annuity for Financing Retirement Benefits [Member] | Supplemental Executive Retirement and Death Benefit Agreements [Member] | Other Assets [Member] | ||||
Note 12 - Supplemental Executive Retirement Plan (Details) [Line Items] | ||||
Cash Surrender Value of Life Insurance | $ 12,100 | $ 12,100 |
Note 13. Subsequent Event (Deta
Note 13. Subsequent Event (Details) - Consumer Portfolio Segment [Member] - USD ($) $ in Thousands | Jul. 24, 2015 | Jun. 30, 2015 |
Note 13. Subsequent Event (Details) [Line Items] | ||
Sale of Loan Receivable, Selling Price | $ 83,400 | |
Subsequent Event [Member] | ||
Note 13. Subsequent Event (Details) [Line Items] | ||
Sale of Loan Receivable, Estimated Loss | $ (900) |
Uncategorized Items - egbn-2015
Label | Element | Value |
Provision for Credit Losses | us-gaap_ProvisionForLoanLeaseAndOtherLosses | $ 3,134 |
Provision for Credit Losses | us-gaap_ProvisionForLoanLeaseAndOtherLosses | 3,471 |
Net Income | us-gaap_NetIncomeLoss | 12,944 |
Net Income | us-gaap_NetIncomeLoss | 20,938 |
Increase in the cash surrender value of bank owned life insurance | us-gaap_BankOwnedLifeInsuranceIncome | 310 |
Increase in the cash surrender value of bank owned life insurance | us-gaap_BankOwnedLifeInsuranceIncome | 406 |
Gain on sale of loans | us-gaap_GainLossOnSaleOfLoansAndLeases | 1,021 |
Gain on sale of loans | us-gaap_GainLossOnSaleOfLoansAndLeases | $ 3,294 |