Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 30, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'HERITAGE COMMERCE CORP | ' |
Entity Central Index Key | '0001053352 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 26,345,329 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $32,571 | $16,520 |
Interest-bearing deposits in other financial institutions | 9,327 | 357,045 |
Total cash and cash equivalents | 41,898 | 373,565 |
Securities available-for-sale, at fair value | 280,471 | 367,912 |
Securities held-to-maturity, at amortized cost (fair value of $80,505 at September 30, 2013 and $50,964 at December 31, 2012) | 89,732 | 51,472 |
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs | 6,975 | 3,409 |
Loans, net of deferred fees | 893,052 | 812,313 |
Allowance for loan losses | -19,342 | -19,027 |
Loans, net | 873,710 | 793,286 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 10,792 | 10,728 |
Company owned life insurance | 49,598 | 48,358 |
Premises and equipment, net | 7,390 | 7,469 |
Intangible assets | 1,645 | 2,000 |
Accrued interest receivable and other assets | 38,424 | 35,113 |
Total assets | 1,400,635 | 1,693,312 |
Deposits: | ' | ' |
Demand, noninterest-bearing | 409,269 | 727,684 |
Demand, interest-bearing | 178,783 | 155,951 |
Savings and money market | 312,991 | 272,047 |
Time deposits-under $100 | 22,029 | 25,157 |
Time deposits-$100 and over | 195,321 | 190,502 |
Time deposits-brokered | 62,833 | 97,807 |
CDARS - money market and time deposits | 14,311 | 10,220 |
Total deposits | 1,195,537 | 1,479,368 |
Subordinated debt | ' | 9,279 |
Accrued interest payable and other liabilities | 34,613 | 34,924 |
Total liabilities | 1,230,150 | 1,523,571 |
Shareholders' equity: | ' | ' |
Preferred stock, no par value; 10,000,000 shares authorized - Series C convertible perpetual preferred stock, 21,004 shares issued and outstanding at September 30, 2013 and December 31, 2012 (liquidation preference of $21,004 at September 30, 2013 and December 31, 2012) | 19,519 | 19,519 |
Common stock, no par value; 60,000,000 shares authorized; 26,341,021 shares issued and outstanding at September 30, 2013 and 26,322,147 shares issued and outstanding at December 31, 2012 | 132,298 | 131,820 |
Retained earnings | 22,949 | 15,721 |
Accumulated other comprehensive (loss) income | -4,281 | 2,681 |
Total shareholders' equity | 170,485 | 169,741 |
Total liabilities and shareholders' equity | $1,400,635 | $1,693,312 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Securities held-to-maturity, fair value (in dollars) | $80,505 | $50,964 |
Preferred stock, par value (in dollars per share) | ' | ' |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Series C convertible perpetual preferred stock, shares issued | 21,004 | 21,004 |
Series C convertible perpetual preferred stock, shares outstanding | 21,004 | 21,004 |
Series C convertible perpetual preferred stock, liquidation preference (in dollars) | $21,004 | $21,004 |
Common stock, par value per share | ' | ' |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 26,341,021 | 26,322,147 |
Common stock, shares outstanding | 26,341,021 | 26,322,147 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income: | ' | ' | ' | ' |
Loans, including fees | $10,733 | $10,146 | $30,874 | $30,754 |
Securities, taxable | 2,247 | 2,681 | 7,107 | 8,753 |
Securities, non-taxable | 436 | 5 | 1,042 | 5 |
Interest-bearing deposits in other financial institutions | 42 | 30 | 140 | 95 |
Total interest income | 13,458 | 12,862 | 39,163 | 39,607 |
Interest expense: | ' | ' | ' | ' |
Deposits | 575 | 690 | 1,796 | 2,144 |
Subordinated debt | 51 | 346 | 229 | 1,293 |
Short-term borrowings | 1 | 2 | 1 | 3 |
Total interest expense | 627 | 1,038 | 2,026 | 3,440 |
Net interest income before provision for loan losses | 12,831 | 11,824 | 37,137 | 36,167 |
Provision (credit) for loan losses | -534 | 1,200 | -804 | 2,115 |
Net interest income after provision for loan losses | 13,365 | 10,624 | 37,941 | 34,052 |
Noninterest income: | ' | ' | ' | ' |
Service charges and fees on deposit accounts | 645 | 575 | 1,840 | 1,766 |
Increase in cash surrender value of life insurance | 414 | 434 | 1,240 | 1,292 |
Servicing income | 331 | 429 | 1,081 | 1,336 |
Gain on sales of SBA loans | 103 | 221 | 373 | 633 |
Gain on sales of securities | ' | 1,105 | 38 | 1,164 |
Other | 245 | 184 | 744 | 570 |
Total noninterest income | 1,738 | 2,948 | 5,316 | 6,761 |
Noninterest expense: | ' | ' | ' | ' |
Salaries and employee benefits | 5,772 | 5,336 | 17,647 | 16,380 |
Occupancy and equipment | 986 | 1,041 | 3,082 | 3,004 |
Professional fees | 602 | 587 | 1,984 | 2,268 |
Software subscriptions | 381 | 275 | 966 | 878 |
Low income housing investment losses | 320 | 264 | 930 | 795 |
Data processing | 259 | 252 | 838 | 744 |
Insurance expense | 255 | 198 | 763 | 645 |
FDIC deposit insurance premiums | 200 | 248 | 666 | 675 |
Correspondent bank charges | 170 | 156 | 513 | 455 |
Foreclosed assets, net | 8 | 9 | -242 | 229 |
Subordinated debt redemption charges | ' | 601 | 167 | 601 |
Other | 1,427 | 1,180 | 4,236 | 3,783 |
Total noninterest expense | 10,380 | 10,147 | 31,550 | 30,457 |
Income before income taxes | 4,723 | 3,425 | 11,707 | 10,356 |
Income tax expense | 1,510 | 939 | 3,521 | 3,116 |
Net income | 3,213 | 2,486 | 8,186 | 7,240 |
Dividends and discount accretion on preferred stock | ' | ' | ' | -1,206 |
Net income available to common shareholders | $3,213 | $2,486 | $8,186 | $6,034 |
Earnings per common share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.10 | $0.08 | $0.26 | $0.19 |
Diluted (in dollars per share) | $0.10 | $0.08 | $0.26 | $0.19 |
Dividends per share (in dollars per share) | $0.03 | ' | $0.03 | ' |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $3,213 | $2,486 | $8,186 | $7,240 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Change in net unrealized holding gains (losses) on available-for-sale securities and I/O strips | 675 | 3,045 | -12,033 | 6,814 |
Deferred income taxes | -284 | -1,279 | 5,053 | -2,862 |
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity | -14 | 870 | -42 | 870 |
Deferred income taxes | 6 | -365 | 18 | -365 |
Reclassification adjustment for gains realized in income | ' | -1,105 | -38 | -1,164 |
Deferred income taxes | ' | 464 | 16 | 489 |
Change in unrealized gains (losses) on securities and I/O strips, net of deferred income taxes | 383 | 1,630 | -7,026 | 3,782 |
Change in net pension and other benefit plan liability adjustment | 44 | 38 | 109 | 134 |
Deferred income taxes | -18 | -16 | -45 | -56 |
Change in pension and other benefit plan liability, net of deferred income taxes | 26 | 22 | 64 | 78 |
Other comprehensive income (loss) | 409 | 1,652 | -6,962 | 3,860 |
Total comprehensive income | $3,622 | $4,138 | $1,224 | $11,100 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income / (Loss) |
Balance at Dec. 31, 2011 | $197,831,000 | $59,365,000 | $131,172,000 | $7,172,000 | $955,000 |
Balance (in shares) at Dec. 31, 2011 | ' | 61,004 | 26,295,001 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' |
Net income | 7,240,000 | ' | ' | 7,240,000 | ' |
Other comprehensive income (loss) | 3,860,000 | ' | ' | ' | 3,860,000 |
Repurchase of Series A preferred stock | -40,000,000 | -40,000,000 | ' | ' | ' |
Repurchase of Series A preferred stock (in shares) | ' | -40,000 | ' | ' | ' |
Series A preferred stock capitalized offering costs | ' | 154,000 | ' | -154,000 | ' |
Issuance (forfeitures) of restricted stock awards, net (in shares) | ' | ' | 21,500 | ' | ' |
Amortization of restricted stock awards, net of forfeitures and taxes | 86,000 | ' | 86,000 | ' | ' |
Cash dividends accrued on Series A preferred stock | -373,000 | ' | ' | -373,000 | ' |
Accretion of discount on Series A preferred stock | ' | 833,000 | ' | -833,000 | ' |
Stock option expense, net of forfeitures and taxes | 340,000 | ' | 340,000 | ' | ' |
Stock options exercised | 17,000 | ' | 17,000 | ' | ' |
Stock options exercised (in shares) | ' | ' | 3,683 | ' | ' |
Balance at Sep. 30, 2012 | 169,001,000 | 19,519,000 | 131,615,000 | 13,052,000 | 4,815,000 |
Balance (in shares) at Sep. 30, 2012 | ' | 21,004 | 26,320,184 | ' | ' |
Balance at Dec. 31, 2012 | 169,741,000 | 19,519,000 | 131,820,000 | 15,721,000 | 2,681,000 |
Balance (in shares) at Dec. 31, 2012 | ' | 21,004 | 26,322,147 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' |
Net income | 8,186,000 | ' | ' | 8,186,000 | ' |
Other comprehensive income (loss) | -6,962,000 | ' | ' | ' | -6,962,000 |
Issuance (forfeitures) of restricted stock awards, net (in shares) | ' | ' | 10,000 | ' | ' |
Repurchase of warrant | -140,000 | ' | -140,000 | ' | ' |
Amortization of restricted stock awards, net of forfeitures and taxes | 153,000 | ' | 153,000 | ' | ' |
Stock option expense, net of forfeitures and taxes | 430,000 | ' | 430,000 | ' | ' |
Cash dividend declared on common stock, $0.03 per share (in dollars per share) | -958,000 | ' | ' | -958,000 | ' |
Stock options exercised | 35,000 | ' | 35,000 | ' | ' |
Stock options exercised (in shares) | ' | ' | 8,874 | ' | ' |
Balance at Sep. 30, 2013 | $170,485,000 | $19,519,000 | $132,298,000 | $22,949,000 | ($4,281,000) |
Balance (in shares) at Sep. 30, 2013 | ' | 21,004 | 26,341,021 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ' | ' |
Cash dividend declared on common stock, per share (in dollars per share) | $0.03 | $0.03 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $8,186,000 | $7,240,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Amortization of discounts and premiums on securities | 1,894,000 | 1,781,000 |
Gain on sales of securities available-for-sale | -38,000 | -1,164,000 |
Gain on sales of SBA loans | -373,000 | -633,000 |
Proceeds from sale of SBA loans originated for sale | 5,128,000 | 8,792,000 |
Net change in SBA loans originated for sale | -8,341,000 | -8,882,000 |
Write-downs on other loans held-for-sale | ' | 87,000 |
Provision (credit) for loan losses | -804,000 | 2,115,000 |
Increase in cash surrender value of life insurance | -1,240,000 | -1,292,000 |
Depreciation and amortization | 539,000 | 569,000 |
Amortization of intangible assets | 355,000 | 368,000 |
Gains on sale of foreclosed assets, net | -231,000 | -135,000 |
Stock option expense, net | 430,000 | 340,000 |
Amortization of restricted stock awards, net | 153,000 | 86,000 |
Effect of changes in: | ' | ' |
Accrued interest receivable and other assets | 999,000 | 1,871,000 |
Accrued interest payable and other liabilities | 1,395,000 | 481,000 |
Net cash provided by operating activities | 8,052,000 | 11,624,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of securities available-for-sale | -8,334,000 | -148,107,000 |
Purchase of securities held-to-maturity | -43,324,000 | -6,821,000 |
Maturities/paydowns/calls of securities available-for-sale | 55,206,000 | 82,766,000 |
Maturities/paydowns/calls of securities held-to-maturity | 3,310,000 | ' |
Proceeds from sale of securities available-for-sale | 26,944,000 | 26,357,000 |
Net change in loans | -79,633,000 | -40,360,000 |
Change in Federal Home Loan Bank and Federal Reserve Bank stock | -64,000 | -976,000 |
Purchase of premises and equipment | -460,000 | -216,000 |
Proceeds from sale of foreclosed assets | 809,000 | 574,000 |
Proceeds from sale of other loans transferred to held-for-sale | ' | 220,000 |
Purchases of company owned life insurance | ' | -249,000 |
Net cash used in investing activities | -45,546,000 | -86,812,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net change in deposits | -283,831,000 | 88,605,000 |
Repurchase of warrant | -140,000 | ' |
Repayment of preferred stock | ' | -40,000,000 |
Redemption of subordinated debt | -9,279,000 | -14,423,000 |
Payment of cash dividends - Series A preferred stock | ' | -373,000 |
Payment of cash dividends - common stock | -958,000 | ' |
Exercise of stock options | 35,000 | 17,000 |
Net cash provided by (used in) financing activities | -294,173,000 | 33,826,000 |
Net decrease in cash and cash equivalents | -331,667,000 | -41,362,000 |
Cash and cash equivalents, beginning of period | 373,565,000 | 72,872,000 |
Cash and cash equivalents, end of period | 41,898,000 | 31,510,000 |
Supplemental disclosures of cash flow information: | ' | ' |
Interest paid | 2,110,000 | 3,927,000 |
Income taxes paid | 3,365,000 | 2,230,000 |
Supplemental schedule of non-cash investing activity: | ' | ' |
Due to broker for securities purchased | 1,901,000 | 9,353,000 |
Loans transferred to foreclosed assets | 33,000 | 1,973,000 |
Transfer securities from available-for-sale to held-to-maturity | ' | 15,498,000 |
Transfer of loans held-for-sale to loan portfolio | $20,000 | $87,000 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1) Basis of Presentation | |
The unaudited consolidated financial statements of Heritage Commerce Corp (the "Company" or "HCC") and its wholly owned subsidiary, Heritage Bank of Commerce (the "Bank" or "HBC"), have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements are not included herein. The interim statements should be read in conjunction with the consolidated financial statements and notes that were included in the Company's Form 10-K for the year ended December 31, 2012. The Company also established the following unconsolidated subsidiary grantor trusts: Heritage Capital Trust I; Heritage Statutory Trust I; Heritage Statutory Trust II; and Heritage Commerce Corp Statutory Trust III, which were Delaware Statutory business trusts formed for the exclusive purpose of issuing and selling trust preferred securities. During the third quarter of 2012 the Company dissolved the Heritage Statutory Trust I and the Heritage Capital Trust I. During the third quarter of 2013 the Company dissolved the Heritage Statutory Trust II and the Heritage Commerce Corp Statutory Trust III. | |
HBC is a commercial bank serving customers located in Santa Clara, Alameda, and Contra Costa counties of California. No customer accounts for more than 10 percent of revenue for HBC or the Company. Management evaluates the Company's performance as a whole and does not allocate resources based on the performance of different lending or transaction activities. Accordingly, the Company and its subsidiary operate as one business segment. | |
In management's opinion, all adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. All intercompany transactions and balances have been eliminated. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates. | |
The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results expected for any subsequent period or for the entire year ending December 31, 2013. | |
Reclassifications | |
Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company's consolidated financial position, results of operations or net change in cash and cash equivalents. | |
Adoption of New Accounting Standards | |
In February 2013, the FASB issued an accounting standards update with the primary objective of improving the reporting of reclassifications out of accumulated other comprehensive income ("AOCI"). For significant reclassifications that are required to be presented in their entirety in net income in the same reporting period by U.S. GAAP, the update requires an entity to report the effect of these reclassifications out of AOCI on the respective line items of net income either on the face of the statement that reports net income or in the financial statement notes. For AOCI items that are not reclassified to net income in their entirety, presentation in the financial statement notes is required. This update is effective for public companies for fiscal years and interim periods within those years beginning after December 15, 2012, or the first quarter of 2013 for calendar year-end companies, and is required to be applied prospectively. The effect of adopting this standard did not have a material effect on the Company's operating results or financial condition, but the additional disclosures are included in Note 3. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
2) Earnings Per Share | ||||||||||||||
Basic earnings per common share is computed by dividing net income, less dividends and discount accretion on preferred stock, by the weighted average common shares outstanding. On June 21, 2010, the Company issued to various institutional investors 21,004 shares of Series C Convertible Perpetual Preferred Stock ("Series C Preferred Stock"). The Series C Preferred Stock is convertible into 5,601,000 shares of common stock when transferred in accordance with its terms. The Series C Preferred Stock participate in the earnings of the Company and, therefore, the shares issued on the conversion of the Series C Preferred Stock are considered outstanding under the two-class method of computing basic earnings per common share during periods of earnings. Diluted earnings per share reflect potential dilution from outstanding stock options and common stock warrant, using the treasury stock method. The common stock warrant was antidilutive for the nine months ended September 30, 2013 and for the three months and nine months ended September 30, 2012. The Company repurchased the warrant for $140,000 in the second quarter of 2013. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows: | ||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Net income available to common shareholders | $ | 3,213 | $ | 2,486 | $ | 8,186 | $ | 6,034 | ||||||
Less: net income allocated to Series C Preferred Stock | 563 | 436 | 1,436 | 1,059 | ||||||||||
Net income allocated to common shareholders | $ | 2,650 | $ | 2,050 | $ | 6,750 | $ | 4,975 | ||||||
Weighted average common shares outstanding for basic earnings per common share | 26,340,080 | 26,312,263 | 26,335,222 | 26,297,359 | ||||||||||
Dilutive effect of stock options oustanding, using the the treasury stock method | 46,969 | 30,776 | 46,742 | 27,096 | ||||||||||
Shares used in computing diluted earnings per common share | 26,387,049 | 26,343,039 | 26,381,965 | 26,324,455 | ||||||||||
Basic earnings per share | $ | 0.1 | $ | 0.08 | $ | 0.26 | $ | 0.19 | ||||||
Diluted earnings per share | $ | 0.1 | $ | 0.08 | $ | 0.26 | $ | 0.19 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (''AOCI'') | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income ("AOCI") | ' | |||||||||||||
Accumulated Other Comprehensive Income ("AOCI") | ' | |||||||||||||
3) Accumulated Other Comprehensive Income ("AOCI") | ||||||||||||||
The following table reflects the changes in AOCI by component for the periods indicated: | ||||||||||||||
For the Three Months Ended September 30, 2013 and 2012 | ||||||||||||||
Unrealized | Unamortized | Defined | Total(1) | |||||||||||
Gains | Unrealized | Benefit | ||||||||||||
(Losses) on | Gain on | Pension | ||||||||||||
Available- | Available- | Plan | ||||||||||||
for-Sale | for-Sale | Items(1) | ||||||||||||
Securities | Securities | |||||||||||||
and I/O | Reclassified | |||||||||||||
Strips(1) | to Held-to- | |||||||||||||
Maturity(1) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Beginning balance July 1, 2013, net of taxes | $ | 494 | $ | 481 | $ | (5,665 | ) | $ | (4,690 | ) | ||||
Other comprehensive income (loss) before reclassification, net of taxes | 391 | — | (16 | ) | 375 | |||||||||
Amounts reclassified from other comprehensive income (loss), net of taxes | — | (8 | ) | 42 | 34 | |||||||||
Net current period other comprensive income (loss), net of taxes | 391 | (8 | ) | 26 | 409 | |||||||||
Ending balance September 30, 2013, net of taxes | $ | 885 | $ | 473 | $ | (5,639 | ) | $ | (4,281 | ) | ||||
Beginning balance July 1, 2012, net of taxes | $ | 8,362 | $ | — | $ | (5,199 | ) | $ | 3,163 | |||||
Other comprehensive income (loss) before reclassification, net of taxes | 1,766 | — | (19 | ) | 1,747 | |||||||||
Amounts reclassified from other comprehensive income (loss), net of taxes | (641 | ) | 505 | 41 | (95 | ) | ||||||||
Net current period other comprensive income, net of taxes | 1,125 | 505 | 22 | 1,652 | ||||||||||
Ending balance September 30, 2012, net of taxes | $ | 9,487 | $ | 505 | $ | (5,177 | ) | $ | 4,815 | |||||
-1 | ||||||||||||||
Amounts in parenthesis indicate debits. | ||||||||||||||
For the Nine Months Ended September 30, 2013 and 2012 | ||||||||||||||
Unrealized | Unamortized | Defined | Total(1) | |||||||||||
Gains | Unrealized | Benefit | ||||||||||||
(Losses) on | Gain on | Pension | ||||||||||||
Available- | Available- | Plan | ||||||||||||
for-Sale | for-Sale | Items(1) | ||||||||||||
Securities | Securities | |||||||||||||
and I/O | Reclassified | |||||||||||||
Strips(1) | to Held-to- | |||||||||||||
Maturity(1) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Beginning balance January 1, 2013, net of taxes | $ | 7,887 | $ | 497 | $ | (5,703 | ) | $ | 2,681 | |||||
Other comprehensive (loss) before reclassification, net of taxes | (6,980 | ) | — | (63 | ) | (7,043 | ) | |||||||
Amounts reclassified from other comprehensive income (loss), net of taxes | (22 | ) | (24 | ) | 127 | 81 | ||||||||
Net current period other comprensive income (loss), net of taxes | (7,002 | ) | (24 | ) | 64 | (6,962 | ) | |||||||
Ending balance September 30, 2013, net of taxes | $ | 885 | $ | 473 | $ | (5,639 | ) | $ | (4,281 | ) | ||||
Beginning balance January 1, 2012, net of taxes | $ | 6,210 | $ | — | $ | (5,255 | ) | $ | 955 | |||||
Other comprehensive income (loss) before reclassification, net of taxes | 3,952 | — | (44 | ) | 3,908 | |||||||||
Amounts reclassified from other comprehensive income (loss), net of taxes | (675 | ) | 505 | 122 | (48 | ) | ||||||||
Net current period other comprensive income, net of taxes | 3,277 | 505 | 78 | 3,860 | ||||||||||
Ending balance September 30, 2012, net of taxes | $ | 9,487 | $ | 505 | $ | (5,177 | ) | $ | 4,815 | |||||
-1 | ||||||||||||||
Amounts in parenthesis indicate debits. | ||||||||||||||
Amounts | ||||||||||||||
Reclassified | ||||||||||||||
from AOCI(1) | ||||||||||||||
For the Three | ||||||||||||||
Months Ended | ||||||||||||||
September 30, | Affected Line Item Where | |||||||||||||
Details About AOCI Components | 2013 | 2012 | Net Income is Presented | |||||||||||
(Dollars in thousands) | ||||||||||||||
Unrealized gains on available-for-sale securities and I/O strips | $ | — | $ | 1,105 | Realized gains on sale of securities | |||||||||
— | (464 | ) | Income tax expense | |||||||||||
— | 641 | Net of tax | ||||||||||||
Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity | 14 | (870 | ) | Interest income on taxable securities | ||||||||||
(6 | ) | 365 | Income tax expense | |||||||||||
8 | (505 | ) | Net of tax | |||||||||||
Amortization of defined benefit pension plan items(2) | ||||||||||||||
Prior service cost | — | (7 | ) | |||||||||||
Actuarial losses | (73 | ) | (63 | ) | ||||||||||
(73 | ) | (70 | ) | Income before income tax | ||||||||||
31 | 29 | Income tax expense | ||||||||||||
(42 | ) | (41 | ) | Net of tax | ||||||||||
Total reclassification for the period | $ | (34 | ) | $ | 95 | |||||||||
-1 | ||||||||||||||
Amounts in parenthesis indicate debits. | ||||||||||||||
-2 | ||||||||||||||
This AOCI component is included in the computation of net periodic benefit cost (see Note 7—Benefit Plans). | ||||||||||||||
Amounts | ||||||||||||||
Reclassified | ||||||||||||||
from AOCI(1) | ||||||||||||||
For the Nine | ||||||||||||||
Months Ended | ||||||||||||||
September 30, | Affected Line Item Where | |||||||||||||
Details About AOCI Components | 2013 | 2012 | Net Income is Presented | |||||||||||
(Dollars in thousands) | ||||||||||||||
Unrealized gains on available-for-sale securities and I/O strips | $ | 38 | $ | 1,164 | Realized gains on sale of securities | |||||||||
(16 | ) | (489 | ) | Income tax expense | ||||||||||
22 | 675 | Net of tax | ||||||||||||
Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity | 42 | (870 | ) | Interest income on taxable securities | ||||||||||
(18 | ) | 365 | Income tax expense | |||||||||||
24 | (505 | ) | Net of tax | |||||||||||
Amortization of defined benefit pension plan items(2) | ||||||||||||||
Prior service cost | — | (21 | ) | |||||||||||
Actuarial losses | (219 | ) | (189 | ) | ||||||||||
(219 | ) | (210 | ) | Income before income tax | ||||||||||
92 | 88 | Income tax expense | ||||||||||||
(127 | ) | (122 | ) | Net of tax | ||||||||||
Total reclassification for the period | $ | (81 | ) | $ | 48 | |||||||||
-1 | ||||||||||||||
Amounts in parenthesis indicate debits. | ||||||||||||||
-2 | ||||||||||||||
This AOCI component is included in the computation of net periodic benefit cost (see Note 7—Benefit Plans). | ||||||||||||||
Securities
Securities | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Securities | ' | |||||||||||||||||||
Securities | ' | |||||||||||||||||||
4) Securities | ||||||||||||||||||||
The amortized cost and estimated fair value of securities at September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||
September 30, 2013 | Amortized | Gross | Gross | Estimated | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 210,728 | $ | 4,193 | $ | (2,407 | ) | $ | 212,514 | |||||||||||
Corporate bonds | 49,040 | 446 | (1,739 | ) | 47,747 | |||||||||||||||
Trust preferred securities | 20,829 | 75 | (694 | ) | 20,210 | |||||||||||||||
Total | $ | 280,597 | $ | 4,714 | $ | (4,840 | ) | $ | 280,471 | |||||||||||
Securities held-to-maturity: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 13,229 | $ | — | $ | (316 | ) | $ | 12,913 | |||||||||||
Municipals—tax exempt | 76,503 | 82 | (8,993 | ) | 67,592 | |||||||||||||||
Total | $ | 89,732 | $ | 82 | $ | (9,309 | ) | $ | 80,505 | |||||||||||
December 31, 2012 | Amortized | Gross | Gross | Estimated | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 281,598 | $ | 9,668 | $ | (22 | ) | $ | 291,244 | |||||||||||
Corporate bonds | 53,739 | 1,849 | — | 55,588 | ||||||||||||||||
Trust preferred securities | 20,769 | 375 | (64 | ) | 21,080 | |||||||||||||||
Total | $ | 356,106 | $ | 11,892 | $ | (86 | ) | $ | 367,912 | |||||||||||
Securities held-to-maturity: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 16,659 | $ | 2 | $ | (177 | ) | $ | 16,484 | |||||||||||
Municipals—tax exempt | 34,813 | 80 | (413 | ) | 34,480 | |||||||||||||||
Total | $ | 51,472 | $ | 82 | $ | (590 | ) | $ | 50,964 | |||||||||||
Securities with unrealized losses at September 30, 2013 and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
September 30, 2013 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 62,034 | $ | (2,254 | ) | $ | 2,731 | $ | (153 | ) | $ | 64,765 | $ | (2,407 | ) | |||||
Corporate bonds | 35,744 | (1,739 | ) | — | — | 35,744 | (1,739 | ) | ||||||||||||
Trust preferred securities | 14,306 | (694 | ) | — | — | 14,306 | (694 | ) | ||||||||||||
Total | $ | 112,084 | $ | (4,687 | ) | $ | 2,731 | $ | (153 | ) | $ | 114,815 | $ | (4,840 | ) | |||||
Securities held-to-maturity: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 4,380 | $ | (145 | ) | $ | 8,213 | $ | (172 | ) | $ | 12,593 | $ | (317 | ) | |||||
Municipals—Tax Exempt | 59,680 | (8,992 | ) | — | — | 59,680 | (8,992 | ) | ||||||||||||
Total | $ | 64,060 | $ | (9,137 | ) | $ | 8,213 | $ | (172 | ) | $ | 72,273 | $ | (9,309 | ) | |||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 6,226 | $ | (22 | ) | $ | — | $ | — | $ | 6,226 | $ | (22 | ) | ||||||
Trust preferred securities | 5,705 | (64 | ) | — | — | 5,705 | (64 | ) | ||||||||||||
Total | $ | 11,931 | $ | (86 | ) | $ | — | $ | — | $ | 11,931 | $ | (86 | ) | ||||||
Securities held-to-maturity: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 15,789 | $ | (177 | ) | $ | — | $ | — | $ | 15,789 | $ | (177 | ) | ||||||
Municipals—Tax Exempt | 21,985 | (413 | ) | — | — | 21,985 | (413 | ) | ||||||||||||
Total | $ | 37,774 | $ | (590 | ) | $ | — | $ | — | $ | 37,774 | $ | (590 | ) | ||||||
There were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders' equity. At September 30, 2013, the Company held 380 securities (160 available for sale and 220 held to maturity), of which 237 had fair values below amortized cost. Unrealized losses were due to higher interest rates. At September 30, 2013, there were $2.7 million of agency mortgage-backed securities available-for-sale, and $8.2 million of agency mortgage-backed securities held-to-maturity carried with an unrealized loss for over 12 months. The total unrealized loss for securities over 12 months was $325,000 at September 30, 2013. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The Company does not consider these securities to be other than temporarily impaired at September 30, 2013. | ||||||||||||||||||||
At December 31, 2012, the Company held 269 securities (168 available-for-sale and 101 held-to-maturity), of which 70 had fair values below amortized cost. No securities had been carried with an unrealized loss for over 12 months. The Company does not consider these securities to be other-than-temporarily impaired at December 31, 2012. | ||||||||||||||||||||
The proceeds from sales of securities and the resulting gains and losses are listed below: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Proceeds | $ | — | $ | 24,077 | $ | 26,944 | $ | 26,357 | ||||||||||||
Gross gains | — | 1,105 | 310 | 1,164 | ||||||||||||||||
Gross losses | — | — | (272 | ) | — | |||||||||||||||
The amortized cost and estimated fair values of securities as of September 30, 2013, by contractual maturity, are shown below. The expected maturities will differ from contractual maturities if borrowers have the right to call or pre-pay obligations with or without call or pre-payment penalties. Securities not due at a single maturity date are shown separately. | ||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Due after one through five years | $ | 2,028 | $ | 2,124 | ||||||||||||||||
Due after five through ten years | 47,012 | 45,623 | ||||||||||||||||||
Due after ten years | 20,829 | 20,210 | ||||||||||||||||||
Agency mortgage-backed securities | 210,728 | 212,514 | ||||||||||||||||||
Total | $ | 280,597 | $ | 280,471 | ||||||||||||||||
Held-to-maturity | ||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Due after five through ten years | $ | 2,751 | $ | 2,658 | ||||||||||||||||
Due after ten years | 73,752 | 64,935 | ||||||||||||||||||
Agency mortgage-backed securities | 13,229 | 12,912 | ||||||||||||||||||
Total | $ | 89,732 | $ | 80,505 | ||||||||||||||||
Loans
Loans | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Loans | ' | |||||||||||||||||||
Loans | ' | |||||||||||||||||||
5) Loans | ||||||||||||||||||||
Loans were as follows: | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Loans held-for-investment: | ||||||||||||||||||||
Commercial | $ | 410,933 | $ | 375,469 | ||||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 387,777 | 354,934 | ||||||||||||||||||
Land and construction | 30,780 | 22,352 | ||||||||||||||||||
Home equity | 50,100 | 43,865 | ||||||||||||||||||
Consumer | 13,712 | 15,714 | ||||||||||||||||||
Loans | 893,302 | 812,334 | ||||||||||||||||||
Deferred loan origination fees, net | (250 | ) | (21 | ) | ||||||||||||||||
Loans, net of deferred fees | 893,052 | 812,313 | ||||||||||||||||||
Allowance for loan losses | (19,342 | ) | (19,027 | ) | ||||||||||||||||
Loans, net | $ | 873,710 | $ | 793,286 | ||||||||||||||||
Changes in the allowance for loan losses were as follows for the periods indicated: | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 12,811 | $ | 6,388 | $ | 143 | $ | 19,342 | ||||||||||||
Charge-offs | (254 | ) | (40 | ) | — | (294 | ) | |||||||||||||
Recoveries | 820 | 7 | 1 | 828 | ||||||||||||||||
Net (charge-offs)/recoveries | 566 | (33 | ) | 1 | 534 | |||||||||||||||
Provision (credit) for loan losses | (10 | ) | (461 | ) | (63 | ) | (534 | ) | ||||||||||||
Balance, end of period | $ | 13,367 | $ | 5,894 | $ | 81 | $ | 19,342 | ||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 13,378 | $ | 6,539 | $ | 106 | $ | 20,023 | ||||||||||||
Charge-offs | (916 | ) | (1,334 | ) | — | (2,250 | ) | |||||||||||||
Recoveries | 149 | 2 | — | 151 | ||||||||||||||||
Net (charge-offs)/recoveries | (767 | ) | (1,332 | ) | — | (2,099 | ) | |||||||||||||
Provision (credit) for loan losses | 661 | 525 | 14 | 1,200 | ||||||||||||||||
Balance, end of period | $ | 13,272 | $ | 5,732 | $ | 120 | $ | 19,124 | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 12,866 | $ | 6,034 | $ | 127 | $ | 19,027 | ||||||||||||
Charge-offs | (1,213 | ) | (96 | ) | — | (1,309 | ) | |||||||||||||
Recoveries | 2,158 | 269 | 1 | 2,428 | ||||||||||||||||
Net (charge-offs)/recoveries | 945 | 173 | 1 | 1,119 | ||||||||||||||||
Provision (credit) for loan losses | (444 | ) | (313 | ) | (47 | ) | (804 | ) | ||||||||||||
Balance, end of period | $ | 13,367 | $ | 5,894 | $ | 81 | $ | 19,342 | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 13,215 | $ | 7,338 | $ | 147 | $ | 20,700 | ||||||||||||
Charge-offs | (3,106 | ) | (1,480 | ) | — | (4,586 | ) | |||||||||||||
Recoveries | 670 | 225 | — | 895 | ||||||||||||||||
Net (charge-offs)/recoveries | (2,436 | ) | (1,255 | ) | — | (3,691 | ) | |||||||||||||
Provision (credit) for loan losses | 2,493 | (351 | ) | (27 | ) | 2,115 | ||||||||||||||
Balance, end of period | $ | 13,272 | $ | 5,732 | $ | 120 | $ | 19,124 | ||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment, based on the impairment method at the following period-ends: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 2,426 | $ | 827 | $ | 25 | $ | 3,278 | ||||||||||||
Collectively evaluated for impairment | 10,941 | 5,067 | 56 | 16,064 | ||||||||||||||||
Total allowance balance | $ | 13,367 | $ | 5,894 | $ | 81 | $ | 19,342 | ||||||||||||
Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 5,736 | $ | 9,259 | $ | 132 | $ | 15,127 | ||||||||||||
Collectively evaluated for impairment | 405,197 | 459,398 | 13,580 | 878,175 | ||||||||||||||||
Total loan balance | $ | 410,933 | $ | 468,657 | $ | 13,712 | $ | 893,302 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,963 | $ | 760 | $ | 17 | $ | 2,740 | ||||||||||||
Collectively evaluated for impairment | 10,903 | 5,274 | 110 | 16,287 | ||||||||||||||||
Total allowance balance | $ | 12,866 | $ | 6,034 | $ | 127 | $ | 19,027 | ||||||||||||
Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 10,161 | $ | 9,336 | $ | 147 | $ | 19,644 | ||||||||||||
Collectively evaluated for impairment | 365,308 | 411,815 | 15,567 | 792,690 | ||||||||||||||||
Total loan balance | $ | 375,469 | $ | 421,151 | $ | 15,714 | $ | 812,334 | ||||||||||||
The following table presents loans held-for-investment individually evaluated for impairment by class of loans as of September 30, 2013 and December 31, 2012. The recorded investment included in the following table represents loan principal net of any partial charge-offs recognized on the loans. The unpaid principal balance represents the recorded balance prior to any partial charge-offs. | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Unpaid | Recorded | Allowance | Unpaid | Recorded | Allowance | |||||||||||||||
Principal | Investment | for Loan | Principal | Investment | for Loan | |||||||||||||||
Balance | Losses | Balance | Losses | |||||||||||||||||
Allocated | Allocated | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | 682 | $ | 598 | $ | — | $ | 7,829 | $ | 6,978 | $ | — | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 3,452 | 3,452 | — | 2,755 | 2,741 | — | ||||||||||||||
Land and construction | 1,794 | 1,794 | — | 2,310 | 2,223 | — | ||||||||||||||
Home Equity | 2,059 | 2,059 | — | 2,141 | 2,141 | — | ||||||||||||||
Total with no related allowance recorded | 7,987 | 7,903 | — | 15,035 | 14,083 | — | ||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | 5,207 | 5,138 | 2,426 | 3,678 | 3,182 | 1,963 | ||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 1,543 | 1,543 | 463 | 3,183 | 1,937 | 465 | ||||||||||||||
Land and construction | 55 | 55 | 8 | — | — | — | ||||||||||||||
Home Equity | 356 | 356 | 356 | 295 | 295 | 295 | ||||||||||||||
Consumer | 132 | 132 | 25 | 147 | 147 | 17 | ||||||||||||||
Total with an allowance recorded | 7,293 | 7,224 | 3,278 | 7,303 | 5,561 | 2,740 | ||||||||||||||
Total | $ | 15,280 | $ | 15,127 | $ | 3,278 | $ | 22,338 | $ | 19,644 | $ | 2,740 | ||||||||
The following tables present interest recognized and cash-basis interest earned on impaired loans for the periods indicated: | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
Commercial | Commercial and | Land and | Home | Consumer | Total | |||||||||||||||
Residential | Construction | Equity | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average of impaired loans during the period | $ | 5,539 | $ | 5,032 | $ | 1,989 | $ | 2,393 | $ | 133 | $ | 15,086 | ||||||||
Interest income during impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Cash-basis interest earned | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
Commercial | Commercial and | Land and | Home | Consumer | Total | |||||||||||||||
Residential | Construction | Equity | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average of impaired loans during the period | $ | 11,138 | $ | 3,329 | $ | 2,228 | $ | 546 | $ | 156 | $ | 17,397 | ||||||||
Interest income during impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Cash-basis interest earned | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
Commercial | Commercial and | Land and | Home | Consumer | Total | |||||||||||||||
Residential | Construction | Equity | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average of impaired loans during the period | $ | 7,342 | $ | 5,061 | $ | 2,095 | $ | 2,414 | $ | 138 | $ | 17,050 | ||||||||
Interest income during impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Cash-basis interest earned | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
Commercial | Commercial and | Land and | Home | Consumer | Total | |||||||||||||||
Residential | Construction | Equity | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average of impaired loans during the period | $ | 11,294 | $ | 3,051 | $ | 2,615 | $ | 281 | $ | 83 | $ | 17,324 | ||||||||
Interest income during impairment | $ | — | $ | 1 | $ | 14 | $ | — | $ | — | $ | 15 | ||||||||
Cash-basis interest earned | $ | — | $ | 1 | $ | 14 | $ | — | $ | — | $ | 15 | ||||||||
Nonperforming loans include both smaller dollar balance homogenous loans that are collectively evaluated for impairment and individually classified loans. Nonperforming loans were as follows at period-end: | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2012 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonaccrual loans—held-for-investment | $ | 14,615 | $ | 17,396 | $ | 17,335 | ||||||||||||||
Restructured and loans over 90 days past due and still accruing | 502 | 1,722 | 859 | |||||||||||||||||
Total nonperforming loans | $ | 15,117 | $ | 19,118 | $ | 18,194 | ||||||||||||||
Other restructured loans | $ | 10 | $ | 704 | $ | 1,450 | ||||||||||||||
Impaired loans, excluding loans held-for-sale | $ | 15,127 | $ | 19,822 | $ | 19,644 | ||||||||||||||
The following table presents the nonperforming loans by class as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Nonaccrual | Restructured and | Total | Nonaccrual | Restructured and | Total | |||||||||||||||
Loans Over | Loans Over | |||||||||||||||||||
90 Days | 90 Days | |||||||||||||||||||
Past Due and | Past Due and | |||||||||||||||||||
Still Accruing | Still Accruing | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 5,224 | $ | 502 | $ | 5,726 | $ | 7,852 | $ | 859 | $ | 8,711 | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 4,995 | — | 4,995 | 4,676 | — | 4,676 | ||||||||||||||
Land and construction | 1,849 | — | 1,849 | 2,223 | — | 2,223 | ||||||||||||||
Home equity | 2,415 | — | 2,415 | 2,437 | — | 2,437 | ||||||||||||||
Consumer | 132 | — | 132 | 147 | — | 147 | ||||||||||||||
Total | $ | 14,615 | $ | 502 | $ | 15,117 | $ | 17,335 | $ | 859 | $ | 18,194 | ||||||||
The following table presents the aging of past due loans as of September 30, 2013 by class of loans: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
30 - 59 | 60 - 89 | 90 Days or | Total | Loans Not | Total | |||||||||||||||
Days | Days | Greater | Past Due | Past Due | ||||||||||||||||
Past Due | Past Due | Past Due | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 1,098 | $ | 716 | $ | 2,690 | $ | 4,504 | $ | 406,429 | $ | 410,933 | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 134 | — | 1,548 | 1,682 | 386,095 | 387,777 | ||||||||||||||
Land and construction | — | — | 55 | 55 | 30,725 | 30,780 | ||||||||||||||
Home equity | — | — | 447 | 447 | 49,653 | 50,100 | ||||||||||||||
Consumer | — | 97 | 97 | 13,615 | 13,712 | |||||||||||||||
Total | $ | 1,232 | $ | 716 | $ | 4,837 | $ | 6,785 | $ | 886,517 | $ | 893,302 | ||||||||
The following table presents the aging of past due loans as of December 31, 2012 by class of loans: | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
30 - 59 | 60 - 89 | 90 Days or | Total | Loans Not | Total | |||||||||||||||
Days | Days | Greater | Past Due | Past Due | ||||||||||||||||
Past Due | Past Due | Past Due | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 1,699 | $ | 355 | $ | 5,120 | $ | 7,174 | $ | 368,295 | $ | 375,469 | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 1,603 | — | 3,290 | 4,893 | 350,041 | 354,934 | ||||||||||||||
Land and construction | — | — | 78 | 78 | 22,274 | 22,352 | ||||||||||||||
Home equity | 742 | — | 2,045 | 2,787 | 41,078 | 43,865 | ||||||||||||||
Consumer | — | — | — | — | 15,714 | 15,714 | ||||||||||||||
Total | $ | 4,044 | $ | 355 | $ | 10,533 | $ | 14,932 | $ | 797,402 | $ | 812,334 | ||||||||
Past due loans 30 days or greater totaled $6,785,000 and $14,932,000 at September 30, 2013 and December 31, 2012, respectively, of which $5,603,000 and $12,020,000 were on nonaccrual. At September 30, 2013, there were also $9,012,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2012, there were also $5,315,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. Management's classification of a loan as "nonaccrual" is an indication that there is reasonable doubt as to the full recovery of principal or interest on the loan. At that point, the Company stops accruing interest income, and reverses any uncollected interest that had been accrued as income. The Company begins recognizing interest income only as cash interest payments are received and it has been determined the collection of all outstanding principal is not in doubt. The loans may or may not be collateralized, and collection efforts are pursued. | ||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||
Concentrations of credit risk arise when a number of customers are engaged in similar business activities, or activities in the same geographic region, or have similar features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Company's loan portfolio is concentrated in commercial (primarily manufacturing, wholesale, and service) and real estate lending, with the balance in consumer loans. While no specific industry concentration is considered significant, the Company's lending operations are located in the Company's market areas that are dependent on the technology and real estate industries and their supporting companies. Thus, the Company's borrowers could be adversely impacted by a continued downturn in these sectors of the economy which could reduce the demand for loans and adversely impact the borrowers' ability to repay their loans. | ||||||||||||||||||||
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with contractual loans terms. Classified loans are those loans that are assigned a substandard, substandard-nonaccrual, or doubtful risk rating using the following definitions: | ||||||||||||||||||||
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||
Substandard-Nonaccrual. Loans classified as substandard-nonaccrual are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. In addition, the Company no longer accrues interest on the loan because of the underlying weaknesses. | ||||||||||||||||||||
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||
Loss. Loans classified as loss are considered uncollectable or of so little value that their continuance as assets is not warranted. This classification does not necessarily mean that a loan has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery would occur. Loans classified as loss are immediately charged off against the allowance for loan losses. Therefore, there is no balance to report at September 30, 2013 or December 31, 2012. | ||||||||||||||||||||
The following table provides a summary of the loan portfolio by loan type and credit quality classification at September 30, 2013 and December 31, 2012: | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Nonclassified | Classified | Total | Nonclassified | Classified | Total | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 396,102 | $ | 14,831 | $ | 410,933 | $ | 355,440 | $ | 20,029 | $ | 375,469 | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 380,470 | 7,307 | 387,777 | 345,045 | 9,889 | 354,934 | ||||||||||||||
Land and construction | 28,931 | 1,849 | 30,780 | 18,858 | 3,494 | 22,352 | ||||||||||||||
Home equity | 47,364 | 2,736 | 50,100 | 41,187 | 2,678 | 43,865 | ||||||||||||||
Consumer | 13,354 | 358 | 13,712 | 15,321 | 393 | 15,714 | ||||||||||||||
Total | $ | 866,221 | $ | 27,081 | $ | 893,302 | $ | 775,851 | $ | 36,483 | $ | 812,334 | ||||||||
Classified loans in the table above are gross of Small Business Administration ("SBA") guarantees. | ||||||||||||||||||||
In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company's underwriting policy. | ||||||||||||||||||||
The recorded investment of troubled debt restructurings at September 30, 2013 was $2,045,000, which included $1,534,000 of nonaccrual loans and $511,000 of accruing loans. The book balance of troubled debt restructurings at December 31, 2012 was $4,107,000, which included $1,798,000 of nonaccrual loans and $2,309,000 of accruing loans. Approximately $722,000 and $1,152,000 in specific reserves were established with respect to these loans as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, the Company had no additional amounts committed on any loan classified as a troubled debt restructuring. | ||||||||||||||||||||
There were no new loans modified as troubled debt restructurings during the three month period ended September 30, 2013. The following table presents loans by class modified as troubled debt restructurings during the three month period ended September 30, 2012: | ||||||||||||||||||||
During the Three Months Ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Troubled Debt Restructurings: | Number | Pre-modification | Post-modification | |||||||||||||||||
of | Outstanding | Outstanding | ||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||
Investment | Investment | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Consumer | 2 | $ | 91 | $ | 91 | |||||||||||||||
Total | 2 | $ | 91 | $ | 91 | |||||||||||||||
The troubled debt restructurings described above increased the allowance for loan losses by $21,000 through the allocation of specific reserves, and resulted in no net charge-offs during the three month period ended September 30, 2012. | ||||||||||||||||||||
There were no new loans modified as troubled debt restructurings during the nine month period ended September 30, 2013. The following table presents loans by class modified as troubled debt restructurings during the nine month period ended September 30, 2012: | ||||||||||||||||||||
During the Nine Months Ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Troubled Debt Restructurings: | Number | Pre-modification | Post-modification | |||||||||||||||||
of | Outstanding | Outstanding | ||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||
Investment | Investment | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | 3 | $ | 163 | $ | 163 | |||||||||||||||
Consumer | 1 | 111 | 111 | |||||||||||||||||
Total | 4 | $ | 274 | $ | 274 | |||||||||||||||
The troubled debt restructurings described above increased the allowance for loan losses by $59,000 through the allocation of specific reserves, and resulted in no net charge-offs during the nine month period ended September 30, 2012. | ||||||||||||||||||||
A loan is considered to be in payment default when it is 30 days contractually past due under the modified terms. There were no defaults on troubled debt restructurings, within twelve months following the modification, during the three and nine month periods ended September 30, 2013 and 2012. | ||||||||||||||||||||
A loan that is a troubled debt restructuring on nonaccrual status may return to accruing status after a period of at least six months of consecutive payments in accordance with the modified terms. | ||||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
6) Income Taxes | |
Some items of income and expense are recognized in different years for tax purposes than when applying generally accepted accounting principles, leading to timing differences between the Company's actual tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the "deferred" portion of the Company's tax expense or benefit, which is accumulated on the Company's books as a deferred tax asset or deferred tax liability until such time as they reverse. | |
Realization of the Company's deferred tax assets is primarily dependent upon the Company generating sufficient taxable income to obtain benefit from the reversal of net deductible temporary differences and utilization of tax credit carryforwards and the net operating loss carryforwards for Federal and California state income tax purposes. The amount of deferred tax assets considered realizable is subject to adjustment in future periods based on estimates of future taxable income. Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is "more likely than not" that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management's evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. | |
The Company had net deferred tax assets of $23,673,000, and $19,264,000, at September 30, 2013, and December 31, 2012, respectively. After consideration of the matters in the preceding paragraph, the Company determined that it is more likely than not that the net deferred tax asset at September 30, 2013 and December 31, 2012 will be fully realized in future years. | |
Benefit_Plans
Benefit Plans | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Benefit Plans | ' | |||||||||||||
Benefit Plans | ' | |||||||||||||
7) Benefit Plans | ||||||||||||||
Supplemental Retirement Plan | ||||||||||||||
The Company has a supplemental retirement plan (the "Plan") covering current and former key executives and directors. The Plan is a nonqualified defined benefit plan. Benefits are unsecured as there are no Plan assets. The following table presents the amount of periodic cost recognized for the periods indicated: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 303 | $ | 294 | $ | 909 | $ | 882 | ||||||
Interest cost | 196 | 193 | 588 | 579 | ||||||||||
Amortization of prior service cost | — | 7 | — | 21 | ||||||||||
Amortization of net actuarial loss | 73 | 63 | 219 | 189 | ||||||||||
Net periodic benefit cost | $ | 572 | $ | 557 | $ | 1,716 | $ | 1,671 | ||||||
Split-Dollar Life Insurance Benefit Plan | ||||||||||||||
The Company maintains life insurance policies for current and former directors and officers that are subject to split-dollar life insurance agreements. The following table sets forth the funded status of the split-dollar life insurance benefits for the periods indicated: | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Change in projected benefit obligation | ||||||||||||||
Projected benefit obligation at beginning of year | $ | 4,717 | $ | 4,525 | ||||||||||
Interest cost | 133 | 185 | ||||||||||||
Actuarial gain | — | 7 | ||||||||||||
Projected benefit obligation at end of period | $ | 4,850 | $ | 4,717 | ||||||||||
Preferred_Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
Preferred Stock | ' |
Preferred Stock | ' |
8) Preferred Stock | |
Series A Preferred Stock | |
On November 21, 2008, the Company issued 40,000 shares of Series A Fixed Rate Cumulative Perpetual Preferred Stock ("Series A Preferred Stock") to the U.S. Treasury under the terms of the U.S. Treasury Capital Purchase Program for $40,000,000 with a liquidation preference of $1,000 per share. On March 7, 2012, in accordance with approvals received from the U.S. Treasury and the Federal Reserve Board, the Company repurchased all of the Series A Preferred Stock and paid all of the related accrued and unpaid dividends. HCC used available cash and proceeds from a $30,000,000 distribution approved by the California Department of Financial Institutions from HBC to HCC. The repurchase of the Series A Preferred Stock accelerated the accretion of the remaining issuance discount on the Series A Preferred Stock. Total dividends and discount accretion on Preferred Stock, including accelerated accretion of approximately $765,000, reduced net income available to common shareholders by $1,206,000 in the first quarter of 2012. On June 12, 2013, the Company completed the repurchase of the common stock warrant issued to the U.S. Department of the Treasury on November 21, 2008, which was exercisable into 462,963 shares of common stock at an exercise price of $12.96. The Company repurchased the warrant for $140,000. | |
Series C Preferred Stock | |
On June 21, 2010, the Company issued to various institutional investors 21,004 shares of Series C Convertible Perpetual Preferred Stock ("Series C Preferred Stock"). The Series C Preferred Stock is mandatorily convertible into 5,601,000 shares of common stock at a conversion price of $3.75 per share upon a subsequent transfer of the Series C Preferred Stock to third parties not affiliated with the holder in a widely dispersed offering. The Series C Preferred Stock is non-voting except in the case of certain transactions that would affect the rights of the holders of the Series C Preferred Stock or applicable law. Holders of Series C Preferred Stock will receive dividends if and only to the extent dividends are paid to holders of common stock. The Series C Preferred Stock is not redeemable by the Company or by the holders and has a liquidation preference of $1,000 per share. The Series C Preferred Stock ranks senior to the Company's common stock. | |
Fair_Value
Fair Value | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value | ' | ||||||||||||||||
Fair Value | ' | ||||||||||||||||
9) Fair Value | |||||||||||||||||
Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | |||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data (for example, interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, credit risks, and default rates). | |||||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||
Financial Assets and Liabilities Measured on a Recurring Basis | |||||||||||||||||
The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). | |||||||||||||||||
The fair value of interest-only ("I/O") strip receivable assets is based on a valuation model used by a third party. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2 inputs). | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Balance | Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets at September 30, 2013: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Agency mortgage-backed securities | $ | 212,514 | — | $ | 212,514 | — | |||||||||||
Corporate bonds | 47,747 | — | 47,747 | — | |||||||||||||
Trust preferred securities | 20,210 | — | 20,210 | — | |||||||||||||
I/O strip receivables | 1,647 | — | 1,647 | — | |||||||||||||
Assets at December 31, 2012: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Agency mortgage-backed securities | $ | 291,244 | — | $ | 291,244 | — | |||||||||||
Corporate bonds | 55,588 | — | 55,588 | — | |||||||||||||
Trust preferred securities | 21,080 | — | 21,080 | — | |||||||||||||
I/O strip receivables | 1,786 | 1,786 | — | ||||||||||||||
There were no transfers between Level 1 and Level 2 during the period for assets measured at fair value on a recurring basis. | |||||||||||||||||
Assets and Liabilities Measured on a Non-Recurring Basis | |||||||||||||||||
The fair value of loans held-for-sale is generally based on obtaining bids and broker indications on the estimated value of these loans held- for-sale, resulting in a Level 2 classification. | |||||||||||||||||
The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||
Foreclosed assets are valued at the time the loan is foreclosed upon and the asset is transferred to foreclosed assets. The fair value is based primarily on third party appraisals, less costs to sell. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Balance | Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets at September 30, 2013: | |||||||||||||||||
Impaired loans—held-for-investment: | |||||||||||||||||
Commercial | $ | 3,012 | — | — | $ | 3,012 | |||||||||||
Real estate: | |||||||||||||||||
Commercial and residential | 2,984 | — | — | 2,984 | |||||||||||||
Land and construction | 1,363 | — | — | 1,363 | |||||||||||||
Consumer | 107 | — | — | 107 | |||||||||||||
$ | 7,466 | — | — | $ | 7,466 | ||||||||||||
Foreclosed assets: | |||||||||||||||||
Commercial | $ | 29 | — | — | $ | 29 | |||||||||||
Land and construction | 602 | — | — | 602 | |||||||||||||
$ | 631 | — | — | $ | 631 | ||||||||||||
Assets at December 31, 2012: | |||||||||||||||||
Impaired loans—held-for-investment: | |||||||||||||||||
Commercial | $ | 3,645 | — | — | $ | 3,645 | |||||||||||
Real estate: | |||||||||||||||||
Commercial and residential | 3,674 | — | — | 3,674 | |||||||||||||
Land and construction | 1,723 | — | — | 1,723 | |||||||||||||
Consumer | 130 | — | — | 130 | |||||||||||||
$ | 9,172 | — | — | $ | 9,172 | ||||||||||||
Foreclosed assets: | |||||||||||||||||
Commercial | $ | 83 | — | — | $ | 83 | |||||||||||
Land and construction | 1,187 | — | — | 1,187 | |||||||||||||
$ | 1,270 | — | — | $ | 1,270 | ||||||||||||
The following table shows the detail of the impaired loans held-for-investment and the impaired loans held-for-investment carried at fair value for the periods indicated: | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Impaired loans held-for-investment: | |||||||||||||||||
Book value of impaired loans held-for-investment carried at fair value | $ | 10,744 | $ | 11,912 | |||||||||||||
Book value of impaired loans held-for-investment carried at cost | 4,383 | 7,732 | |||||||||||||||
Total impaired loans held-for-investment | $ | 15,127 | $ | 19,644 | |||||||||||||
Impaired loans held-for-investment carried at fair value: | |||||||||||||||||
Book value of impaired loans held-for-investment carried at fair value | $ | 10,744 | $ | 11,912 | |||||||||||||
Specific valuation allowance | (3,278 | ) | (2,740 | ) | |||||||||||||
Impaired loans held-for-investment carried at fair value, net | $ | 7,466 | $ | 9,172 | |||||||||||||
Impaired loans held-for-investment which are measured primarily for impairment using the fair value of the collateral were $15,127,000 at September 30, 2013, after partial charge-offs of $153,000 in the first nine months of 2013. In addition, these loans had a specific valuation allowance of $3,278,000 at September 30, 2013. Impaired loans held-for-investment totaling $10,744,000 at September 30, 2013 were carried at fair value as a result of the aforementioned partial charge-offs and specific valuation allowances at period-end. The remaining $4,383,000 of impaired loans were carried at cost at September 30, 2013, as the fair value of the collateral exceeded the cost basis of each respective loan. Partial charge-offs and changes in specific valuation allowances during the first nine months of 2013 on impaired loans held-for-investment carried at fair value at September 30, 2013 resulted in an additional provision for loan losses of $1,072,000. | |||||||||||||||||
Foreclosed assets measured at fair value less costs to sell, had a carrying amount of $631,000, with no valuation allowance at September 30, 2013. | |||||||||||||||||
Impaired loans held-for-investment of $19,644,000 at December 31, 2012, after partial charge-offs of $2,694,000 in 2012, were analyzed for additional impairment primarily using the fair value of collateral. In addition, these loans had a specific valuation allowance of $2,740,000 at December 31, 2012. Impaired loans held-for-investment totaling $11,912,000 at December 31, 2012 were carried at fair value as a result of the aforementioned partial charge-offs and specific valuation allowances at year-end. The remaining $7,732,000 of impaired loans were carried at cost at December 31, 2012, as the fair value of the collateral exceeded the cost basis of each respective loan. Partial charge-offs and changes in specific valuation allowances during 2012 on impaired loans held-for-investment carried at fair value at December 31, 2012 resulted in an additional provision for loan losses of $3,856,000. | |||||||||||||||||
At December 31, 2012, foreclosed assets had a carrying amount of $1,270,000, with no valuation allowance at December 31, 2012. | |||||||||||||||||
The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods indicated: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Range | ||||||||||||||
Techniques | (Weighted | ||||||||||||||||
Average) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Impaired loans—held-for-investment: | |||||||||||||||||
Commercial | $ | 3,012 | Market Approach | Discount adjustment for differences between comparable sales | 2% to 3% (2%) | ||||||||||||
Real estate: | |||||||||||||||||
Commercial and residential | 2,984 | Market Approach | Discount adjustment for differences between comparable sales | 1% to 15% (1%) | |||||||||||||
Land and construction | 1,363 | Market Approach | Discount adjustment for differences between comparable sales | 1% to 2% (2%) | |||||||||||||
Foreclosed assets: | |||||||||||||||||
Land and construction | 602 | Market Approach | Discount adjustment for differences between comparable sales | 1% to 16% (7%) | |||||||||||||
December 31, 2012 | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Range | ||||||||||||||
Techniques | (Weighted Average) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Impaired loans—held-for-investment: | |||||||||||||||||
Commercial | $ | 3,645 | Market Approach | Discount adjustment for differences between comparable sales | 0% to 4% (1%) | ||||||||||||
Real estate: | |||||||||||||||||
Commercial and residential | 3,674 | Market Approach | Discount adjustment for differences between comparable sales | 0% to 13% (1%) | |||||||||||||
Land and construction | 1,723 | Market Approach | Discount adjustment for differences between comparable sales | 1% to 4% (2%) | |||||||||||||
Foreclosed assets: | |||||||||||||||||
Land and construction | 1,187 | Market Approach | Discount adjustment for differences between comparable sales | 0% to 23% (6%) | |||||||||||||
The Company obtains third party appraisals on its impaired loans held- for-investment and foreclosed assets to determine fair value. Generally, the third party appraisals apply the "market approach," which is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business. Adjustments are then made based on the type of property, age of appraisal, current status of property and other related factors to estimate the current value of collateral. | |||||||||||||||||
The carrying amounts and estimated fair values of financial instruments at September 30, 2013 are as follows: | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying | Quoted Prices in | Significant | Significant | Total | |||||||||||||
Amounts | Active Markets for | Other | Unobservable | ||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 41,898 | $ | 41,898 | $ | — | $ | — | $ | 41,898 | |||||||
Securities available-for-sale | 280,471 | — | 280,471 | — | 280,471 | ||||||||||||
Securities held-to-maturity | 89,732 | — | 80,505 | — | 80,505 | ||||||||||||
Loans (including loans held-for-sale), net | 880,685 | — | 6,975 | 868,811 | 875,786 | ||||||||||||
FHLB and FRB stock | 10,792 | — | — | — | N/A | ||||||||||||
Accrued interest receivable | 4,302 | — | 1,883 | 2,419 | 4,302 | ||||||||||||
Loan servicing rights and I/O strips receivables | 2,212 | — | 4,236 | — | 4,236 | ||||||||||||
Liabilities: | |||||||||||||||||
Time deposits | $ | 286,558 | $ | — | $ | 286,988 | $ | — | $ | 286,988 | |||||||
Other deposits | 908,979 | — | 908,979 | — | 908,979 | ||||||||||||
Accrued interest payable | 193 | — | 193 | — | 193 | ||||||||||||
The carrying amounts and estimated fair values of the Company's financial instruments at December 31, 2012: | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying | Quoted Prices in | Significant | Significant | Total | |||||||||||||
Amounts | Active Markets for | Other | Unobservable | ||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 373,565 | $ | 373,565 | $ | — | $ | — | $ | 373,565 | |||||||
Securities available-for-sale | 367,912 | — | 367,912 | — | 367,912 | ||||||||||||
Securities held-to-maturity | 51,472 | — | 50,964 | — | 50,964 | ||||||||||||
Loans (including loans held-for-sale), net | 796,695 | — | 3,409 | 793,911 | 797,320 | ||||||||||||
FHLB and FRB stock | 10,728 | — | — | — | N/A | ||||||||||||
Accrued interest receivable | 3,773 | — | 1,514 | 2,259 | 3,773 | ||||||||||||
Loan servicing rights and I/O strips receivables | 2,495 | — | 4,715 | — | 4,715 | ||||||||||||
Liabilities: | |||||||||||||||||
Time deposits | $ | 318,664 | $ | — | $ | 319,476 | $ | — | $ | 319,476 | |||||||
Other deposits | 1,160,704 | — | 1,160,704 | — | 1,160,704 | ||||||||||||
Subordinated debt | 9,279 | — | — | 5,400 | 5,400 | ||||||||||||
Accrued interest payable | 277 | — | 277 | — | 277 | ||||||||||||
The methods and assumptions, not previously discussed, used to estimate the fair value are described as follows: | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The carrying amounts of cash on hand, noninterest and interest bearing due from bank accounts, and Fed funds sold approximate fair values and are classified as Level 1. | |||||||||||||||||
Loans | |||||||||||||||||
The carrying amounts of loans held-for-sale approximate fair value resulting in a Level 2 classification. | |||||||||||||||||
Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. | |||||||||||||||||
FHLB and FRB Stock | |||||||||||||||||
It was not practical to determine the fair value of FHLB and FRB stock due to restrictions placed on their transferability. | |||||||||||||||||
Accrued Interest Receivable/Payable | |||||||||||||||||
The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification. | |||||||||||||||||
Deposits | |||||||||||||||||
The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. The carrying amounts of variable rate, fixed-term money market accounts approximate their fair values at the reporting date resulting in a Level 2 classification. The carrying amounts of variable rate, certificates of deposit approximate their fair values at the reporting date resulting in a Level 2 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. | |||||||||||||||||
Subordinated Debt | |||||||||||||||||
The fair values of the subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. | |||||||||||||||||
Off-balance Sheet Instruments | |||||||||||||||||
Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. The fair value of commitments is not material. | |||||||||||||||||
Limitations | |||||||||||||||||
Fair value estimates are made at a specific point in time, based on relevant market information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||
Equity_Plan
Equity Plan | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Equity Plan | ' | |||||||||||||
Equity Plan | ' | |||||||||||||
10) Equity Plan | ||||||||||||||
The Company has maintained an Amended and Restated 2004 Equity Plan (the "2004 Plan") for directors, officers, and key employees. The Equity Plan provides for the grant of incentive and non-qualified stock options and restricted stock. The Equity Plan provides that the option price for both incentive and non-qualified stock options will be determined by the Board of Directors at no less than the fair value at the date of grant. Options granted vest on a schedule determined by the Board of Directors at the time of grant. Generally, options vest over four years. All options expire no later than ten years from the date of grant. The 2004 Plan was terminated on May 23, 2013. On May 23, 2013, the Company's shareholders approved the 2013 Equity Incentive Plan (the "2013 Plan") for equity awards including stock options and restricted stock for directors, officers, and key employees. As of September 30, 2013, there were no equity awards issued and 1,750,000 shares available for issuance under the 2013 Plan. | ||||||||||||||
Stock option activity under the 2004 Plan is as follows: | ||||||||||||||
Total Stock Options | Number | Weighted | Weighted | Aggregate | ||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Life (Years) | ||||||||||||||
Outstanding at January 1, 2013 | 1,314,347 | $ | 12.9 | |||||||||||
Granted | 272,050 | $ | 6.57 | |||||||||||
Exercised | (8,874 | ) | $ | 3.94 | ||||||||||
Forfeited or expired | (44,102 | ) | $ | 12.31 | ||||||||||
Outstanding at September 30, 2013 | 1,533,421 | $ | 11.84 | 5.8 | $ | 1,542,000 | ||||||||
Vested or expected to vest | 1,456,750 | 5.8 | $ | 1,465,000 | ||||||||||
Exercisable at September 30, 2013 | 1,066,878 | 4.5 | $ | 862,000 | ||||||||||
As of September 30, 2013, there was $1,749,000 of total unrecognized compensation cost related to nonvested stock options granted under the 2004 Plan. That cost is expected to be recognized over a weighted-average period of approximately 3.0 years. | ||||||||||||||
Restricted stock activity under the 2004 Plan is as follows: | ||||||||||||||
Total Restricted Stock Award | Number | Weighted | ||||||||||||
of Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested shares at January 1, 2013 | 88,000 | $ | 5.74 | |||||||||||
Granted | 10,000 | $ | 6.51 | |||||||||||
Vested | (40,000 | ) | $ | 5.16 | ||||||||||
Nonvested shares at September 30, 2013 | 58,000 | $ | 6.28 | |||||||||||
As of September 30, 2013, there was $153,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2004 Plan. The cost is expected to be recognized over a weighted-average period of approximately 1 year. | ||||||||||||||
Subordinated_Debt
Subordinated Debt | 9 Months Ended |
Sep. 30, 2013 | |
Subordinated Debt | ' |
Subordinated Debt | ' |
11) Subordinated Debt | |
The Company has supported its growth through the issuance of trust preferred securities from special purpose trusts and accompanying sales of subordinated debt to these trusts. The subordinated debt issued to the trusts is senior to the outstanding shares of common stock and Series C Preferred Stock. As a result, payments must be made on the subordinated debt before any dividends can be paid on the common stock and Series C Preferred Stock. Under the terms of the subordinated debt, the Company may defer interest payments for up to five years. Interest payments on the subordinated notes payable to the Company's subsidiary grantor Trusts are deductible for tax purposes. The subordinated debt is not registered with the Securities and Exchange Commission. For regulatory reporting purposes, the subordinated debt qualified for Tier 1 capital treatment at September 30, 2012, and December 31, 2012. | |
During the third quarter of 2012, the Company redeemed its 10.875% fixed-rate subordinated debentures in the amount of $7,000,000 issued to Heritage Capital Trust I (and the related premium cost of $304,500) and the Company's 10.600% fixed-rate subordinated debentures in the amount of $7,000,000 issued to Heritage Statutory Trust I (and the related premium cost of $296,800). The related trust securities issued by Capital Trust I and Statutory Trust I were also redeemed in connection with the subordinated debt redemption and the trusts were dissolved. A $15,000,000 distribution from the Bank to the HCC provided the cash for the redemption. The Company incurred a charge of $601,300 in 2012 for the early payoff premium on the redemption of the subordinated debt. | |
During the third quarter of 2013, the Company completed the redemption of its $9,000,000 floating-rate subordinated debt. The Company redeemed its Floating Rate Junior Subordinated Debentures due July 31, 2031 in the amount of $5,000,000 issued to Heritage Statutory Trust II and the Company's Floating Rate Junior Subordinated Debentures due September 26, 2032, in the amount of $4,000,000 issued to Heritage Statutory Trust III (collectively referred to as the "Floating Rate Sub Debt"). The Company used available cash and proceeds from a $9,000,000 distribution from the Bank for the redemption. The Company incurred a total charge of $167,000 in the second quarter of 2013, representing the agency origination fees associated with the Floating Rate Sub Debt. | |
Loss_Contingencies
Loss Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Loss Contingencies | ' |
Loss Contingencies | ' |
12) Loss Contingencies | |
The Company's policy is to accrue for legal costs associated with both asserted and unasserted claims when it is probable that such costs will be incurred and such costs can be reasonably estimated. The Company had previously accrued for such costs associated with an unasserted claim arising from an apparent transfer of funds for personal use by an authorized signatory of a customer. The litigation is in the very early stages and the Company intends to vigorously defend the litigation. At this time it is not possible to determine the amount of the loss, if any, arising from the claim in excess of the legal expenses expected to be incurred in defense of the litigation. | |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Event | ' |
Subsequent Event | ' |
13) Subsequent Event | |
On October 24, 2013, the Company announced that its Board of Directors declared a $0.03 per share quarterly cash dividend to holders of common stock and Series C preferred stock (on an as converted basis). The dividend will be paid on November 25, 2013, to shareholders of record on November 7, 2013. | |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications of prior year balances have been made to conform to the current year presentation. These reclassifications had no impact on the Company's consolidated financial position, results of operations or net change in cash and cash equivalents. | |
Adoption of New Accounting Standards | ' |
Adoption of New Accounting Standards | |
In February 2013, the FASB issued an accounting standards update with the primary objective of improving the reporting of reclassifications out of accumulated other comprehensive income ("AOCI"). For significant reclassifications that are required to be presented in their entirety in net income in the same reporting period by U.S. GAAP, the update requires an entity to report the effect of these reclassifications out of AOCI on the respective line items of net income either on the face of the statement that reports net income or in the financial statement notes. For AOCI items that are not reclassified to net income in their entirety, presentation in the financial statement notes is required. This update is effective for public companies for fiscal years and interim periods within those years beginning after December 15, 2012, or the first quarter of 2013 for calendar year-end companies, and is required to be applied prospectively. The effect of adopting this standard did not have a material effect on the Company's operating results or financial condition, but the additional disclosures are included in Note 3. | |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share | ' | |||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Net income available to common shareholders | $ | 3,213 | $ | 2,486 | $ | 8,186 | $ | 6,034 | ||||||
Less: net income allocated to Series C Preferred Stock | 563 | 436 | 1,436 | 1,059 | ||||||||||
Net income allocated to common shareholders | $ | 2,650 | $ | 2,050 | $ | 6,750 | $ | 4,975 | ||||||
Weighted average common shares outstanding for basic earnings per common share | 26,340,080 | 26,312,263 | 26,335,222 | 26,297,359 | ||||||||||
Dilutive effect of stock options oustanding, using the the treasury stock method | 46,969 | 30,776 | 46,742 | 27,096 | ||||||||||
Shares used in computing diluted earnings per common share | 26,387,049 | 26,343,039 | 26,381,965 | 26,324,455 | ||||||||||
Basic earnings per share | $ | 0.1 | $ | 0.08 | $ | 0.26 | $ | 0.19 | ||||||
Diluted earnings per share | $ | 0.1 | $ | 0.08 | $ | 0.26 | $ | 0.19 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (''AOCI'') (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accumulated Other Comprehensive Income ("AOCI") | ' | |||||||||||||
Schedule of changes in AOCI by component | ' | |||||||||||||
For the Three Months Ended September 30, 2013 and 2012 | ||||||||||||||
Unrealized | Unamortized | Defined | Total(1) | |||||||||||
Gains | Unrealized | Benefit | ||||||||||||
(Losses) on | Gain on | Pension | ||||||||||||
Available- | Available- | Plan | ||||||||||||
for-Sale | for-Sale | Items(1) | ||||||||||||
Securities | Securities | |||||||||||||
and I/O | Reclassified | |||||||||||||
Strips(1) | to Held-to- | |||||||||||||
Maturity(1) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Beginning balance July 1, 2013, net of taxes | $ | 494 | $ | 481 | $ | (5,665 | ) | $ | (4,690 | ) | ||||
Other comprehensive income (loss) before reclassification, net of taxes | 391 | — | (16 | ) | 375 | |||||||||
Amounts reclassified from other comprehensive income (loss), net of taxes | — | (8 | ) | 42 | 34 | |||||||||
Net current period other comprensive income (loss), net of taxes | 391 | (8 | ) | 26 | 409 | |||||||||
Ending balance September 30, 2013, net of taxes | $ | 885 | $ | 473 | $ | (5,639 | ) | $ | (4,281 | ) | ||||
Beginning balance July 1, 2012, net of taxes | $ | 8,362 | $ | — | $ | (5,199 | ) | $ | 3,163 | |||||
Other comprehensive income (loss) before reclassification, net of taxes | 1,766 | — | (19 | ) | 1,747 | |||||||||
Amounts reclassified from other comprehensive income (loss), net of taxes | (641 | ) | 505 | 41 | (95 | ) | ||||||||
Net current period other comprensive income, net of taxes | 1,125 | 505 | 22 | 1,652 | ||||||||||
Ending balance September 30, 2012, net of taxes | $ | 9,487 | $ | 505 | $ | (5,177 | ) | $ | 4,815 | |||||
-1 | ||||||||||||||
Amounts in parenthesis indicate debits. | ||||||||||||||
For the Nine Months Ended September 30, 2013 and 2012 | ||||||||||||||
Unrealized | Unamortized | Defined | Total(1) | |||||||||||
Gains | Unrealized | Benefit | ||||||||||||
(Losses) on | Gain on | Pension | ||||||||||||
Available- | Available- | Plan | ||||||||||||
for-Sale | for-Sale | Items(1) | ||||||||||||
Securities | Securities | |||||||||||||
and I/O | Reclassified | |||||||||||||
Strips(1) | to Held-to- | |||||||||||||
Maturity(1) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Beginning balance January 1, 2013, net of taxes | $ | 7,887 | $ | 497 | $ | (5,703 | ) | $ | 2,681 | |||||
Other comprehensive (loss) before reclassification, net of taxes | (6,980 | ) | — | (63 | ) | (7,043 | ) | |||||||
Amounts reclassified from other comprehensive income (loss), net of taxes | (22 | ) | (24 | ) | 127 | 81 | ||||||||
Net current period other comprensive income (loss), net of taxes | (7,002 | ) | (24 | ) | 64 | (6,962 | ) | |||||||
Ending balance September 30, 2013, net of taxes | $ | 885 | $ | 473 | $ | (5,639 | ) | $ | (4,281 | ) | ||||
Beginning balance January 1, 2012, net of taxes | $ | 6,210 | $ | — | $ | (5,255 | ) | $ | 955 | |||||
Other comprehensive income (loss) before reclassification, net of taxes | 3,952 | — | (44 | ) | 3,908 | |||||||||
Amounts reclassified from other comprehensive income (loss), net of taxes | (675 | ) | 505 | 122 | (48 | ) | ||||||||
Net current period other comprensive income, net of taxes | 3,277 | 505 | 78 | 3,860 | ||||||||||
Ending balance September 30, 2012, net of taxes | $ | 9,487 | $ | 505 | $ | (5,177 | ) | $ | 4,815 | |||||
-1 | ||||||||||||||
Amounts in parenthesis indicate debits. | ||||||||||||||
Schedule of reclassifications out of AOCI into net income | ' | |||||||||||||
Amounts | ||||||||||||||
Reclassified | ||||||||||||||
from AOCI(1) | ||||||||||||||
For the Three | ||||||||||||||
Months Ended | ||||||||||||||
September 30, | Affected Line Item Where | |||||||||||||
Details About AOCI Components | 2013 | 2012 | Net Income is Presented | |||||||||||
(Dollars in thousands) | ||||||||||||||
Unrealized gains on available-for-sale securities and I/O strips | $ | — | $ | 1,105 | Realized gains on sale of securities | |||||||||
— | (464 | ) | Income tax expense | |||||||||||
— | 641 | Net of tax | ||||||||||||
Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity | 14 | (870 | ) | Interest income on taxable securities | ||||||||||
(6 | ) | 365 | Income tax expense | |||||||||||
8 | (505 | ) | Net of tax | |||||||||||
Amortization of defined benefit pension plan items(2) | ||||||||||||||
Prior service cost | — | (7 | ) | |||||||||||
Actuarial losses | (73 | ) | (63 | ) | ||||||||||
(73 | ) | (70 | ) | Income before income tax | ||||||||||
31 | 29 | Income tax expense | ||||||||||||
(42 | ) | (41 | ) | Net of tax | ||||||||||
Total reclassification for the period | $ | (34 | ) | $ | 95 | |||||||||
-1 | ||||||||||||||
Amounts in parenthesis indicate debits. | ||||||||||||||
-2 | ||||||||||||||
This AOCI component is included in the computation of net periodic benefit cost (see Note 7—Benefit Plans). | ||||||||||||||
Amounts | ||||||||||||||
Reclassified | ||||||||||||||
from AOCI(1) | ||||||||||||||
For the Nine | ||||||||||||||
Months Ended | ||||||||||||||
September 30, | Affected Line Item Where | |||||||||||||
Details About AOCI Components | 2013 | 2012 | Net Income is Presented | |||||||||||
(Dollars in thousands) | ||||||||||||||
Unrealized gains on available-for-sale securities and I/O strips | $ | 38 | $ | 1,164 | Realized gains on sale of securities | |||||||||
(16 | ) | (489 | ) | Income tax expense | ||||||||||
22 | 675 | Net of tax | ||||||||||||
Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity | 42 | (870 | ) | Interest income on taxable securities | ||||||||||
(18 | ) | 365 | Income tax expense | |||||||||||
24 | (505 | ) | Net of tax | |||||||||||
Amortization of defined benefit pension plan items(2) | ||||||||||||||
Prior service cost | — | (21 | ) | |||||||||||
Actuarial losses | (219 | ) | (189 | ) | ||||||||||
(219 | ) | (210 | ) | Income before income tax | ||||||||||
92 | 88 | Income tax expense | ||||||||||||
(127 | ) | (122 | ) | Net of tax | ||||||||||
Total reclassification for the period | $ | (81 | ) | $ | 48 | |||||||||
-1 | ||||||||||||||
Amounts in parenthesis indicate debits. | ||||||||||||||
-2 | ||||||||||||||
This AOCI component is included in the computation of net periodic benefit cost (see Note 7—Benefit Plans). | ||||||||||||||
Securities_Tables
Securities (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Securities | ' | |||||||||||||||||||
Schedule of amortized cost and estimated fair value of securities | ' | |||||||||||||||||||
September 30, 2013 | Amortized | Gross | Gross | Estimated | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 210,728 | $ | 4,193 | $ | (2,407 | ) | $ | 212,514 | |||||||||||
Corporate bonds | 49,040 | 446 | (1,739 | ) | 47,747 | |||||||||||||||
Trust preferred securities | 20,829 | 75 | (694 | ) | 20,210 | |||||||||||||||
Total | $ | 280,597 | $ | 4,714 | $ | (4,840 | ) | $ | 280,471 | |||||||||||
Securities held-to-maturity: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 13,229 | $ | — | $ | (316 | ) | $ | 12,913 | |||||||||||
Municipals—tax exempt | 76,503 | 82 | (8,993 | ) | 67,592 | |||||||||||||||
Total | $ | 89,732 | $ | 82 | $ | (9,309 | ) | $ | 80,505 | |||||||||||
December 31, 2012 | Amortized | Gross | Gross | Estimated | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||||||
Gains | Losses | Value | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 281,598 | $ | 9,668 | $ | (22 | ) | $ | 291,244 | |||||||||||
Corporate bonds | 53,739 | 1,849 | — | 55,588 | ||||||||||||||||
Trust preferred securities | 20,769 | 375 | (64 | ) | 21,080 | |||||||||||||||
Total | $ | 356,106 | $ | 11,892 | $ | (86 | ) | $ | 367,912 | |||||||||||
Securities held-to-maturity: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 16,659 | $ | 2 | $ | (177 | ) | $ | 16,484 | |||||||||||
Municipals—tax exempt | 34,813 | 80 | (413 | ) | 34,480 | |||||||||||||||
Total | $ | 51,472 | $ | 82 | $ | (590 | ) | $ | 50,964 | |||||||||||
Schedule of securities with unrealized losses | ' | |||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
September 30, 2013 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 62,034 | $ | (2,254 | ) | $ | 2,731 | $ | (153 | ) | $ | 64,765 | $ | (2,407 | ) | |||||
Corporate bonds | 35,744 | (1,739 | ) | — | — | 35,744 | (1,739 | ) | ||||||||||||
Trust preferred securities | 14,306 | (694 | ) | — | — | 14,306 | (694 | ) | ||||||||||||
Total | $ | 112,084 | $ | (4,687 | ) | $ | 2,731 | $ | (153 | ) | $ | 114,815 | $ | (4,840 | ) | |||||
Securities held-to-maturity: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 4,380 | $ | (145 | ) | $ | 8,213 | $ | (172 | ) | $ | 12,593 | $ | (317 | ) | |||||
Municipals—Tax Exempt | 59,680 | (8,992 | ) | — | — | 59,680 | (8,992 | ) | ||||||||||||
Total | $ | 64,060 | $ | (9,137 | ) | $ | 8,213 | $ | (172 | ) | $ | 72,273 | $ | (9,309 | ) | |||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 6,226 | $ | (22 | ) | $ | — | $ | — | $ | 6,226 | $ | (22 | ) | ||||||
Trust preferred securities | 5,705 | (64 | ) | — | — | 5,705 | (64 | ) | ||||||||||||
Total | $ | 11,931 | $ | (86 | ) | $ | — | $ | — | $ | 11,931 | $ | (86 | ) | ||||||
Securities held-to-maturity: | ||||||||||||||||||||
Agency mortgage-backed securities | $ | 15,789 | $ | (177 | ) | $ | — | $ | — | $ | 15,789 | $ | (177 | ) | ||||||
Municipals—Tax Exempt | 21,985 | (413 | ) | — | — | 21,985 | (413 | ) | ||||||||||||
Total | $ | 37,774 | $ | (590 | ) | $ | — | $ | — | $ | 37,774 | $ | (590 | ) | ||||||
Schedule of proceeds from sales of securities and the resulting gains and losses | ' | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Proceeds | $ | — | $ | 24,077 | $ | 26,944 | $ | 26,357 | ||||||||||||
Gross gains | — | 1,105 | 310 | 1,164 | ||||||||||||||||
Gross losses | — | — | (272 | ) | — | |||||||||||||||
Schedule of amortized cost and estimated fair values of securities, by contractual maturity | ' | |||||||||||||||||||
Available-for-sale | ||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Due after one through five years | $ | 2,028 | $ | 2,124 | ||||||||||||||||
Due after five through ten years | 47,012 | 45,623 | ||||||||||||||||||
Due after ten years | 20,829 | 20,210 | ||||||||||||||||||
Agency mortgage-backed securities | 210,728 | 212,514 | ||||||||||||||||||
Total | $ | 280,597 | $ | 280,471 | ||||||||||||||||
Held-to-maturity | ||||||||||||||||||||
Amortized Cost | Estimated Fair Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Due after five through ten years | $ | 2,751 | $ | 2,658 | ||||||||||||||||
Due after ten years | 73,752 | 64,935 | ||||||||||||||||||
Agency mortgage-backed securities | 13,229 | 12,912 | ||||||||||||||||||
Total | $ | 89,732 | $ | 80,505 | ||||||||||||||||
Loans_Tables
Loans (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Loans | ' | |||||||||||||||||||
Schedule of loans | ' | |||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Loans held-for-investment: | ||||||||||||||||||||
Commercial | $ | 410,933 | $ | 375,469 | ||||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 387,777 | 354,934 | ||||||||||||||||||
Land and construction | 30,780 | 22,352 | ||||||||||||||||||
Home equity | 50,100 | 43,865 | ||||||||||||||||||
Consumer | 13,712 | 15,714 | ||||||||||||||||||
Loans | 893,302 | 812,334 | ||||||||||||||||||
Deferred loan origination fees, net | (250 | ) | (21 | ) | ||||||||||||||||
Loans, net of deferred fees | 893,052 | 812,313 | ||||||||||||||||||
Allowance for loan losses | (19,342 | ) | (19,027 | ) | ||||||||||||||||
Loans, net | $ | 873,710 | $ | 793,286 | ||||||||||||||||
Schedule of changes in allowance for loan losses | ' | |||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 12,811 | $ | 6,388 | $ | 143 | $ | 19,342 | ||||||||||||
Charge-offs | (254 | ) | (40 | ) | — | (294 | ) | |||||||||||||
Recoveries | 820 | 7 | 1 | 828 | ||||||||||||||||
Net (charge-offs)/recoveries | 566 | (33 | ) | 1 | 534 | |||||||||||||||
Provision (credit) for loan losses | (10 | ) | (461 | ) | (63 | ) | (534 | ) | ||||||||||||
Balance, end of period | $ | 13,367 | $ | 5,894 | $ | 81 | $ | 19,342 | ||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 13,378 | $ | 6,539 | $ | 106 | $ | 20,023 | ||||||||||||
Charge-offs | (916 | ) | (1,334 | ) | — | (2,250 | ) | |||||||||||||
Recoveries | 149 | 2 | — | 151 | ||||||||||||||||
Net (charge-offs)/recoveries | (767 | ) | (1,332 | ) | — | (2,099 | ) | |||||||||||||
Provision (credit) for loan losses | 661 | 525 | 14 | 1,200 | ||||||||||||||||
Balance, end of period | $ | 13,272 | $ | 5,732 | $ | 120 | $ | 19,124 | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 12,866 | $ | 6,034 | $ | 127 | $ | 19,027 | ||||||||||||
Charge-offs | (1,213 | ) | (96 | ) | — | (1,309 | ) | |||||||||||||
Recoveries | 2,158 | 269 | 1 | 2,428 | ||||||||||||||||
Net (charge-offs)/recoveries | 945 | 173 | 1 | 1,119 | ||||||||||||||||
Provision (credit) for loan losses | (444 | ) | (313 | ) | (47 | ) | (804 | ) | ||||||||||||
Balance, end of period | $ | 13,367 | $ | 5,894 | $ | 81 | $ | 19,342 | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 13,215 | $ | 7,338 | $ | 147 | $ | 20,700 | ||||||||||||
Charge-offs | (3,106 | ) | (1,480 | ) | — | (4,586 | ) | |||||||||||||
Recoveries | 670 | 225 | — | 895 | ||||||||||||||||
Net (charge-offs)/recoveries | (2,436 | ) | (1,255 | ) | — | (3,691 | ) | |||||||||||||
Provision (credit) for loan losses | 2,493 | (351 | ) | (27 | ) | 2,115 | ||||||||||||||
Balance, end of period | $ | 13,272 | $ | 5,732 | $ | 120 | $ | 19,124 | ||||||||||||
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method | ' | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 2,426 | $ | 827 | $ | 25 | $ | 3,278 | ||||||||||||
Collectively evaluated for impairment | 10,941 | 5,067 | 56 | 16,064 | ||||||||||||||||
Total allowance balance | $ | 13,367 | $ | 5,894 | $ | 81 | $ | 19,342 | ||||||||||||
Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 5,736 | $ | 9,259 | $ | 132 | $ | 15,127 | ||||||||||||
Collectively evaluated for impairment | 405,197 | 459,398 | 13,580 | 878,175 | ||||||||||||||||
Total loan balance | $ | 410,933 | $ | 468,657 | $ | 13,712 | $ | 893,302 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Commercial | Real Estate | Consumer | Total | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,963 | $ | 760 | $ | 17 | $ | 2,740 | ||||||||||||
Collectively evaluated for impairment | 10,903 | 5,274 | 110 | 16,287 | ||||||||||||||||
Total allowance balance | $ | 12,866 | $ | 6,034 | $ | 127 | $ | 19,027 | ||||||||||||
Loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 10,161 | $ | 9,336 | $ | 147 | $ | 19,644 | ||||||||||||
Collectively evaluated for impairment | 365,308 | 411,815 | 15,567 | 792,690 | ||||||||||||||||
Total loan balance | $ | 375,469 | $ | 421,151 | $ | 15,714 | $ | 812,334 | ||||||||||||
Schedule of loans held-for-investment individually evaluated for impairment by class of loans | ' | |||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||
Unpaid | Recorded | Allowance | Unpaid | Recorded | Allowance | |||||||||||||||
Principal | Investment | for Loan | Principal | Investment | for Loan | |||||||||||||||
Balance | Losses | Balance | Losses | |||||||||||||||||
Allocated | Allocated | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | 682 | $ | 598 | $ | — | $ | 7,829 | $ | 6,978 | $ | — | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 3,452 | 3,452 | — | 2,755 | 2,741 | — | ||||||||||||||
Land and construction | 1,794 | 1,794 | — | 2,310 | 2,223 | — | ||||||||||||||
Home Equity | 2,059 | 2,059 | — | 2,141 | 2,141 | — | ||||||||||||||
Total with no related allowance recorded | 7,987 | 7,903 | — | 15,035 | 14,083 | — | ||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | 5,207 | 5,138 | 2,426 | 3,678 | 3,182 | 1,963 | ||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 1,543 | 1,543 | 463 | 3,183 | 1,937 | 465 | ||||||||||||||
Land and construction | 55 | 55 | 8 | — | — | — | ||||||||||||||
Home Equity | 356 | 356 | 356 | 295 | 295 | 295 | ||||||||||||||
Consumer | 132 | 132 | 25 | 147 | 147 | 17 | ||||||||||||||
Total with an allowance recorded | 7,293 | 7,224 | 3,278 | 7,303 | 5,561 | 2,740 | ||||||||||||||
Total | $ | 15,280 | $ | 15,127 | $ | 3,278 | $ | 22,338 | $ | 19,644 | $ | 2,740 | ||||||||
Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans | ' | |||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
Commercial | Commercial and | Land and | Home | Consumer | Total | |||||||||||||||
Residential | Construction | Equity | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average of impaired loans during the period | $ | 5,539 | $ | 5,032 | $ | 1,989 | $ | 2,393 | $ | 133 | $ | 15,086 | ||||||||
Interest income during impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Cash-basis interest earned | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
Commercial | Commercial and | Land and | Home | Consumer | Total | |||||||||||||||
Residential | Construction | Equity | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average of impaired loans during the period | $ | 11,138 | $ | 3,329 | $ | 2,228 | $ | 546 | $ | 156 | $ | 17,397 | ||||||||
Interest income during impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Cash-basis interest earned | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
Commercial | Commercial and | Land and | Home | Consumer | Total | |||||||||||||||
Residential | Construction | Equity | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average of impaired loans during the period | $ | 7,342 | $ | 5,061 | $ | 2,095 | $ | 2,414 | $ | 138 | $ | 17,050 | ||||||||
Interest income during impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Cash-basis interest earned | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Real Estate | ||||||||||||||||||||
Commercial | Commercial and | Land and | Home | Consumer | Total | |||||||||||||||
Residential | Construction | Equity | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average of impaired loans during the period | $ | 11,294 | $ | 3,051 | $ | 2,615 | $ | 281 | $ | 83 | $ | 17,324 | ||||||||
Interest income during impairment | $ | — | $ | 1 | $ | 14 | $ | — | $ | — | $ | 15 | ||||||||
Cash-basis interest earned | $ | — | $ | 1 | $ | 14 | $ | — | $ | — | $ | 15 | ||||||||
Schedule of nonperforming loans | ' | |||||||||||||||||||
September 30, | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2013 | 2012 | 2012 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonaccrual loans—held-for-investment | $ | 14,615 | $ | 17,396 | $ | 17,335 | ||||||||||||||
Restructured and loans over 90 days past due and still accruing | 502 | 1,722 | 859 | |||||||||||||||||
Total nonperforming loans | $ | 15,117 | $ | 19,118 | $ | 18,194 | ||||||||||||||
Other restructured loans | $ | 10 | $ | 704 | $ | 1,450 | ||||||||||||||
Impaired loans, excluding loans held-for-sale | $ | 15,127 | $ | 19,822 | $ | 19,644 | ||||||||||||||
Schedule of nonperforming loans by class | ' | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Nonaccrual | Restructured and | Total | Nonaccrual | Restructured and | Total | |||||||||||||||
Loans Over | Loans Over | |||||||||||||||||||
90 Days | 90 Days | |||||||||||||||||||
Past Due and | Past Due and | |||||||||||||||||||
Still Accruing | Still Accruing | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 5,224 | $ | 502 | $ | 5,726 | $ | 7,852 | $ | 859 | $ | 8,711 | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 4,995 | — | 4,995 | 4,676 | — | 4,676 | ||||||||||||||
Land and construction | 1,849 | — | 1,849 | 2,223 | — | 2,223 | ||||||||||||||
Home equity | 2,415 | — | 2,415 | 2,437 | — | 2,437 | ||||||||||||||
Consumer | 132 | — | 132 | 147 | — | 147 | ||||||||||||||
Total | $ | 14,615 | $ | 502 | $ | 15,117 | $ | 17,335 | $ | 859 | $ | 18,194 | ||||||||
Schedule of aging of past due loans by class of loans | ' | |||||||||||||||||||
The following table presents the aging of past due loans as of September 30, 2013 by class of loans: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
30 - 59 | 60 - 89 | 90 Days or | Total | Loans Not | Total | |||||||||||||||
Days | Days | Greater | Past Due | Past Due | ||||||||||||||||
Past Due | Past Due | Past Due | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 1,098 | $ | 716 | $ | 2,690 | $ | 4,504 | $ | 406,429 | $ | 410,933 | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 134 | — | 1,548 | 1,682 | 386,095 | 387,777 | ||||||||||||||
Land and construction | — | — | 55 | 55 | 30,725 | 30,780 | ||||||||||||||
Home equity | — | — | 447 | 447 | 49,653 | 50,100 | ||||||||||||||
Consumer | — | 97 | 97 | 13,615 | 13,712 | |||||||||||||||
Total | $ | 1,232 | $ | 716 | $ | 4,837 | $ | 6,785 | $ | 886,517 | $ | 893,302 | ||||||||
The following table presents the aging of past due loans as of December 31, 2012 by class of loans: | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
30 - 59 | 60 - 89 | 90 Days or | Total | Loans Not | Total | |||||||||||||||
Days | Days | Greater | Past Due | Past Due | ||||||||||||||||
Past Due | Past Due | Past Due | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 1,699 | $ | 355 | $ | 5,120 | $ | 7,174 | $ | 368,295 | $ | 375,469 | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 1,603 | — | 3,290 | 4,893 | 350,041 | 354,934 | ||||||||||||||
Land and construction | — | — | 78 | 78 | 22,274 | 22,352 | ||||||||||||||
Home equity | 742 | — | 2,045 | 2,787 | 41,078 | 43,865 | ||||||||||||||
Consumer | — | — | — | — | 15,714 | 15,714 | ||||||||||||||
Total | $ | 4,044 | $ | 355 | $ | 10,533 | $ | 14,932 | $ | 797,402 | $ | 812,334 | ||||||||
Summary of loan portfolio by loan type and credit quality classification | ' | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Nonclassified | Classified | Total | Nonclassified | Classified | Total | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 396,102 | $ | 14,831 | $ | 410,933 | $ | 355,440 | $ | 20,029 | $ | 375,469 | ||||||||
Real estate: | ||||||||||||||||||||
Commercial and residential | 380,470 | 7,307 | 387,777 | 345,045 | 9,889 | 354,934 | ||||||||||||||
Land and construction | 28,931 | 1,849 | 30,780 | 18,858 | 3,494 | 22,352 | ||||||||||||||
Home equity | 47,364 | 2,736 | 50,100 | 41,187 | 2,678 | 43,865 | ||||||||||||||
Consumer | 13,354 | 358 | 13,712 | 15,321 | 393 | 15,714 | ||||||||||||||
Total | $ | 866,221 | $ | 27,081 | $ | 893,302 | $ | 775,851 | $ | 36,483 | $ | 812,334 | ||||||||
Schedule of loans by class modified as troubled debt restructurings | ' | |||||||||||||||||||
During the Three Months Ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Troubled Debt Restructurings: | Number | Pre-modification | Post-modification | |||||||||||||||||
of | Outstanding | Outstanding | ||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||
Investment | Investment | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Consumer | 2 | $ | 91 | $ | 91 | |||||||||||||||
Total | 2 | $ | 91 | $ | 91 | |||||||||||||||
During the Nine Months Ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Troubled Debt Restructurings: | Number | Pre-modification | Post-modification | |||||||||||||||||
of | Outstanding | Outstanding | ||||||||||||||||||
Contracts | Recorded | Recorded | ||||||||||||||||||
Investment | Investment | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | 3 | $ | 163 | $ | 163 | |||||||||||||||
Consumer | 1 | 111 | 111 | |||||||||||||||||
Total | 4 | $ | 274 | $ | 274 | |||||||||||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Benefit plans | ' | |||||||||||||
Schedule of components of net periodic benefit cost | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 303 | $ | 294 | $ | 909 | $ | 882 | ||||||
Interest cost | 196 | 193 | 588 | 579 | ||||||||||
Amortization of prior service cost | — | 7 | — | 21 | ||||||||||
Amortization of net actuarial loss | 73 | 63 | 219 | 189 | ||||||||||
Net periodic benefit cost | $ | 572 | $ | 557 | $ | 1,716 | $ | 1,671 | ||||||
Schedule of funded status of split-dollar life insurance benefits | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Change in projected benefit obligation | ||||||||||||||
Projected benefit obligation at beginning of year | $ | 4,717 | $ | 4,525 | ||||||||||
Interest cost | 133 | 185 | ||||||||||||
Actuarial gain | — | 7 | ||||||||||||
Projected benefit obligation at end of period | $ | 4,850 | $ | 4,717 | ||||||||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value | ' | ||||||||||||||||
Schedule of financial assets and liabilities measured on a recurring basis | ' | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Balance | Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets at September 30, 2013: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Agency mortgage-backed securities | $ | 212,514 | — | $ | 212,514 | — | |||||||||||
Corporate bonds | 47,747 | — | 47,747 | — | |||||||||||||
Trust preferred securities | 20,210 | — | 20,210 | — | |||||||||||||
I/O strip receivables | 1,647 | — | 1,647 | — | |||||||||||||
Assets at December 31, 2012: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Agency mortgage-backed securities | $ | 291,244 | — | $ | 291,244 | — | |||||||||||
Corporate bonds | 55,588 | — | 55,588 | — | |||||||||||||
Trust preferred securities | 21,080 | — | 21,080 | — | |||||||||||||
I/O strip receivables | 1,786 | 1,786 | — | ||||||||||||||
Schedule of assets and liabilities measured on a non-recurring basis | ' | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Balance | Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets at September 30, 2013: | |||||||||||||||||
Impaired loans—held-for-investment: | |||||||||||||||||
Commercial | $ | 3,012 | — | — | $ | 3,012 | |||||||||||
Real estate: | |||||||||||||||||
Commercial and residential | 2,984 | — | — | 2,984 | |||||||||||||
Land and construction | 1,363 | — | — | 1,363 | |||||||||||||
Consumer | 107 | — | — | 107 | |||||||||||||
$ | 7,466 | — | — | $ | 7,466 | ||||||||||||
Foreclosed assets: | |||||||||||||||||
Commercial | $ | 29 | — | — | $ | 29 | |||||||||||
Land and construction | 602 | — | — | 602 | |||||||||||||
$ | 631 | — | — | $ | 631 | ||||||||||||
Assets at December 31, 2012: | |||||||||||||||||
Impaired loans—held-for-investment: | |||||||||||||||||
Commercial | $ | 3,645 | — | — | $ | 3,645 | |||||||||||
Real estate: | |||||||||||||||||
Commercial and residential | 3,674 | — | — | 3,674 | |||||||||||||
Land and construction | 1,723 | — | — | 1,723 | |||||||||||||
Consumer | 130 | — | — | 130 | |||||||||||||
$ | 9,172 | — | — | $ | 9,172 | ||||||||||||
Foreclosed assets: | |||||||||||||||||
Commercial | $ | 83 | — | — | $ | 83 | |||||||||||
Land and construction | 1,187 | — | — | 1,187 | |||||||||||||
$ | 1,270 | — | — | $ | 1,270 | ||||||||||||
Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value | ' | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Impaired loans held-for-investment: | |||||||||||||||||
Book value of impaired loans held-for-investment carried at fair value | $ | 10,744 | $ | 11,912 | |||||||||||||
Book value of impaired loans held-for-investment carried at cost | 4,383 | 7,732 | |||||||||||||||
Total impaired loans held-for-investment | $ | 15,127 | $ | 19,644 | |||||||||||||
Impaired loans held-for-investment carried at fair value: | |||||||||||||||||
Book value of impaired loans held-for-investment carried at fair value | $ | 10,744 | $ | 11,912 | |||||||||||||
Specific valuation allowance | (3,278 | ) | (2,740 | ) | |||||||||||||
Impaired loans held-for-investment carried at fair value, net | $ | 7,466 | $ | 9,172 | |||||||||||||
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ||||||||||||||||
September 30, 2013 | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Range | ||||||||||||||
Techniques | (Weighted | ||||||||||||||||
Average) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Impaired loans—held-for-investment: | |||||||||||||||||
Commercial | $ | 3,012 | Market Approach | Discount adjustment for differences between comparable sales | 2% to 3% (2%) | ||||||||||||
Real estate: | |||||||||||||||||
Commercial and residential | 2,984 | Market Approach | Discount adjustment for differences between comparable sales | 1% to 15% (1%) | |||||||||||||
Land and construction | 1,363 | Market Approach | Discount adjustment for differences between comparable sales | 1% to 2% (2%) | |||||||||||||
Foreclosed assets: | |||||||||||||||||
Land and construction | 602 | Market Approach | Discount adjustment for differences between comparable sales | 1% to 16% (7%) | |||||||||||||
December 31, 2012 | |||||||||||||||||
Fair Value | Valuation | Unobservable Inputs | Range | ||||||||||||||
Techniques | (Weighted Average) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Impaired loans—held-for-investment: | |||||||||||||||||
Commercial | $ | 3,645 | Market Approach | Discount adjustment for differences between comparable sales | 0% to 4% (1%) | ||||||||||||
Real estate: | |||||||||||||||||
Commercial and residential | 3,674 | Market Approach | Discount adjustment for differences between comparable sales | 0% to 13% (1%) | |||||||||||||
Land and construction | 1,723 | Market Approach | Discount adjustment for differences between comparable sales | 1% to 4% (2%) | |||||||||||||
Foreclosed assets: | |||||||||||||||||
Land and construction | 1,187 | Market Approach | Discount adjustment for differences between comparable sales | 0% to 23% (6%) | |||||||||||||
Schedule of carrying amounts and estimated fair values of financial instruments | ' | ||||||||||||||||
The carrying amounts and estimated fair values of financial instruments at September 30, 2013 are as follows: | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying | Quoted Prices in | Significant | Significant | Total | |||||||||||||
Amounts | Active Markets for | Other | Unobservable | ||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 41,898 | $ | 41,898 | $ | — | $ | — | $ | 41,898 | |||||||
Securities available-for-sale | 280,471 | — | 280,471 | — | 280,471 | ||||||||||||
Securities held-to-maturity | 89,732 | — | 80,505 | — | 80,505 | ||||||||||||
Loans (including loans held-for-sale), net | 880,685 | — | 6,975 | 868,811 | 875,786 | ||||||||||||
FHLB and FRB stock | 10,792 | — | — | — | N/A | ||||||||||||
Accrued interest receivable | 4,302 | — | 1,883 | 2,419 | 4,302 | ||||||||||||
Loan servicing rights and I/O strips receivables | 2,212 | — | 4,236 | — | 4,236 | ||||||||||||
Liabilities: | |||||||||||||||||
Time deposits | $ | 286,558 | $ | — | $ | 286,988 | $ | — | $ | 286,988 | |||||||
Other deposits | 908,979 | — | 908,979 | — | 908,979 | ||||||||||||
Accrued interest payable | 193 | — | 193 | — | 193 | ||||||||||||
The carrying amounts and estimated fair values of the Company's financial instruments at December 31, 2012: | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying | Quoted Prices in | Significant | Significant | Total | |||||||||||||
Amounts | Active Markets for | Other | Unobservable | ||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 373,565 | $ | 373,565 | $ | — | $ | — | $ | 373,565 | |||||||
Securities available-for-sale | 367,912 | — | 367,912 | — | 367,912 | ||||||||||||
Securities held-to-maturity | 51,472 | — | 50,964 | — | 50,964 | ||||||||||||
Loans (including loans held-for-sale), net | 796,695 | — | 3,409 | 793,911 | 797,320 | ||||||||||||
FHLB and FRB stock | 10,728 | — | — | — | N/A | ||||||||||||
Accrued interest receivable | 3,773 | — | 1,514 | 2,259 | 3,773 | ||||||||||||
Loan servicing rights and I/O strips receivables | 2,495 | — | 4,715 | — | 4,715 | ||||||||||||
Liabilities: | |||||||||||||||||
Time deposits | $ | 318,664 | $ | — | $ | 319,476 | $ | — | $ | 319,476 | |||||||
Other deposits | 1,160,704 | — | 1,160,704 | — | 1,160,704 | ||||||||||||
Subordinated debt | 9,279 | — | — | 5,400 | 5,400 | ||||||||||||
Accrued interest payable | 277 | — | 277 | — | 277 | ||||||||||||
Equity_Plan_Tables
Equity Plan (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Equity Plan | ' | |||||||||||||
Schedule of stock option activity under the 2004 Plan | ' | |||||||||||||
Total Stock Options | Number | Weighted | Weighted | Aggregate | ||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Life (Years) | ||||||||||||||
Outstanding at January 1, 2013 | 1,314,347 | $ | 12.9 | |||||||||||
Granted | 272,050 | $ | 6.57 | |||||||||||
Exercised | (8,874 | ) | $ | 3.94 | ||||||||||
Forfeited or expired | (44,102 | ) | $ | 12.31 | ||||||||||
Outstanding at September 30, 2013 | 1,533,421 | $ | 11.84 | 5.8 | $ | 1,542,000 | ||||||||
Vested or expected to vest | 1,456,750 | 5.8 | $ | 1,465,000 | ||||||||||
Exercisable at September 30, 2013 | 1,066,878 | 4.5 | $ | 862,000 | ||||||||||
Schedule of restricted stock activity under the 2004 Plan | ' | |||||||||||||
Total Restricted Stock Award | Number | Weighted | ||||||||||||
of Shares | Average | |||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested shares at January 1, 2013 | 88,000 | $ | 5.74 | |||||||||||
Granted | 10,000 | $ | 6.51 | |||||||||||
Vested | (40,000 | ) | $ | 5.16 | ||||||||||
Nonvested shares at September 30, 2013 | 58,000 | $ | 6.28 | |||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2013 | |
item | |
Basis of Presentation | ' |
Number of customers accounting for more than 10 percent of revenue for HBC or the Company | 0 |
Number of operating segments | 1 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2010 | Sep. 30, 2013 | |
Series C Preferred Stock | Series C Preferred Stock | ||||||
Earnings Per Share | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued to various institutional investors | ' | ' | ' | ' | ' | 21,004 | ' |
Number of common stock into which preferred stock are convertible (in shares) | ' | ' | ' | ' | ' | ' | 5,601,000 |
Repurchase of warrant | ' | $140,000 | ' | $140,000 | ' | ' | ' |
Reconciliation of factors used in computing basic and diluted earnings (loss) per common share | ' | ' | ' | ' | ' | ' | ' |
Net income available to common shareholders | 3,213,000 | ' | 2,486,000 | 8,186,000 | 6,034,000 | ' | ' |
Less: net income allocated to Series C Preferred Stock | 563,000 | ' | 436,000 | 1,436,000 | 1,059,000 | ' | ' |
Net income allocated to common shareholders | $2,650,000 | ' | $2,050,000 | $6,750,000 | $4,975,000 | ' | ' |
Weighted average common shares outstanding for basic earnings per common share | 26,340,080 | ' | 26,312,263 | 26,335,222 | 26,297,359 | ' | ' |
Dilutive effect of stock options outstanding, using the treasury stock method (in shares) | 46,969 | ' | 30,776 | 46,742 | 27,096 | ' | ' |
Shares used in computing diluted earnings per common share | 26,387,049 | ' | 26,343,039 | 26,381,965 | 26,324,455 | ' | ' |
Basic earnings per share (in dollars per share) | $0.10 | ' | $0.08 | $0.26 | $0.19 | ' | ' |
Diluted earnings per share (in dollars per share) | $0.10 | ' | $0.08 | $0.26 | $0.19 | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (''AOCI'') (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in AOCI | ' | ' | ' | ' |
Balance at the beginning of the period, net of taxes | ($4,690) | $3,163 | $2,681 | $955 |
Other comprehensive income (loss) before reclassification, net of taxes | 375 | 1,747 | -7,043 | 3,908 |
Amounts reclassified from other comprehensive income (loss), net of taxes | 34 | -95 | 81 | -48 |
Other comprehensive income (loss) | 409 | 1,652 | -6,962 | 3,860 |
Balance at the end of the period, net of taxes | -4,281 | 4,815 | -4,281 | 4,815 |
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips | ' | ' | ' | ' |
Changes in AOCI | ' | ' | ' | ' |
Balance at the beginning of the period, net of taxes | 494 | 8,362 | 7,887 | 6,210 |
Other comprehensive income (loss) before reclassification, net of taxes | 391 | 1,766 | -6,980 | 3,952 |
Amounts reclassified from other comprehensive income (loss), net of taxes | ' | -641 | -22 | -675 |
Other comprehensive income (loss) | 391 | 1,125 | -7,002 | 3,277 |
Balance at the end of the period, net of taxes | 885 | 9,487 | 885 | 9,487 |
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity | ' | ' | ' | ' |
Changes in AOCI | ' | ' | ' | ' |
Balance at the beginning of the period, net of taxes | 481 | ' | 497 | ' |
Amounts reclassified from other comprehensive income (loss), net of taxes | -8 | 505 | -24 | 505 |
Other comprehensive income (loss) | -8 | 505 | -24 | 505 |
Balance at the end of the period, net of taxes | 473 | 505 | 473 | 505 |
Defined Benefit Pension Plan Items | ' | ' | ' | ' |
Changes in AOCI | ' | ' | ' | ' |
Balance at the beginning of the period, net of taxes | -5,665 | -5,199 | -5,703 | -5,255 |
Other comprehensive income (loss) before reclassification, net of taxes | -16 | -19 | -63 | -44 |
Amounts reclassified from other comprehensive income (loss), net of taxes | 42 | 41 | 127 | 122 |
Other comprehensive income (loss) | 26 | 22 | 64 | 78 |
Balance at the end of the period, net of taxes | ($5,639) | ($5,177) | ($5,639) | ($5,177) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (''AOCI'') (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Amount Reclassified from AOCI | ' | ' | ' | ' |
Realized gains on sale of securities | ' | $1,105 | $38 | $1,164 |
Interest income on taxable securities | 2,247 | 2,681 | 7,107 | 8,753 |
Income before income taxes | 4,723 | 3,425 | 11,707 | 10,356 |
Income tax expense | -1,510 | -939 | -3,521 | -3,116 |
Net income | 3,213 | 2,486 | 8,186 | 7,240 |
Amount Reclassified from AOCI | ' | ' | ' | ' |
Amount Reclassified from AOCI | ' | ' | ' | ' |
Net income | -34 | 95 | -81 | 48 |
Unrealized gains on available-for-sale securities and I/O strips | Amount Reclassified from AOCI | ' | ' | ' | ' |
Amount Reclassified from AOCI | ' | ' | ' | ' |
Realized gains on sale of securities | ' | 1,105 | 38 | 1,164 |
Income tax expense | ' | -464 | -16 | -489 |
Net income | ' | 641 | 22 | 675 |
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity | Amount Reclassified from AOCI | ' | ' | ' | ' |
Amount Reclassified from AOCI | ' | ' | ' | ' |
Interest income on taxable securities | 14 | -870 | 42 | -870 |
Income tax expense | -6 | 365 | -18 | 365 |
Net income | 8 | -505 | 24 | -505 |
Amortization of defined benefit pension plan items | Amount Reclassified from AOCI | ' | ' | ' | ' |
Amount Reclassified from AOCI | ' | ' | ' | ' |
Prior service cost | ' | -7 | ' | -21 |
Actuarial losses | -73 | -63 | -219 | -189 |
Income before income taxes | -73 | -70 | -219 | -210 |
Income tax expense | 31 | 29 | 92 | 88 |
Net income | ($42) | ($41) | ($127) | ($122) |
Securities_Details
Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities available-for-sale: | ' | ' |
Amortized Cost - Securities available-for-sale | $280,597 | $356,106 |
Gross Unrealized Gains | 4,714 | 11,892 |
Gross Unrealized Losses | -4,840 | -86 |
Estimated Fair Value | 280,471 | 367,912 |
Securities held-to-maturity: | ' | ' |
Amortized Cost - Securities held-to-maturity | 89,732 | 51,472 |
Gross Unrealized Gains | 82 | 82 |
Gross Unrealized Losses | -9,309 | -590 |
Estimated Fair Value | 80,505 | 50,964 |
Agency mortgage-backed securities | ' | ' |
Securities available-for-sale: | ' | ' |
Amortized Cost - Securities available-for-sale | 210,728 | 281,598 |
Gross Unrealized Gains | 4,193 | 9,668 |
Gross Unrealized Losses | -2,407 | -22 |
Estimated Fair Value | 212,514 | 291,244 |
Securities held-to-maturity: | ' | ' |
Amortized Cost - Securities held-to-maturity | 13,229 | 16,659 |
Gross Unrealized Gains | ' | 2 |
Gross Unrealized Losses | -316 | -177 |
Estimated Fair Value | 12,913 | 16,484 |
Corporate bonds | ' | ' |
Securities available-for-sale: | ' | ' |
Amortized Cost - Securities available-for-sale | 49,040 | 53,739 |
Gross Unrealized Gains | 446 | 1,849 |
Gross Unrealized Losses | -1,739 | ' |
Estimated Fair Value | 47,747 | 55,588 |
Trust preferred securities | ' | ' |
Securities available-for-sale: | ' | ' |
Amortized Cost - Securities available-for-sale | 20,829 | 20,769 |
Gross Unrealized Gains | 75 | 375 |
Gross Unrealized Losses | -694 | -64 |
Estimated Fair Value | 20,210 | 21,080 |
Municipals - Tax exempt | ' | ' |
Securities held-to-maturity: | ' | ' |
Amortized Cost - Securities held-to-maturity | 76,503 | 34,813 |
Gross Unrealized Gains | 82 | 80 |
Gross Unrealized Losses | -8,993 | -413 |
Estimated Fair Value | $67,592 | $34,480 |
Securities_Details_2
Securities (Details 2) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
item | ||
Fair Value | ' | ' |
Less Than 12 Months | $112,084,000 | $11,931,000 |
12 Months or More | 2,731,000 | ' |
Total | 114,815,000 | 11,931,000 |
Unrealized Losses | ' | ' |
Less Than 12 Months | -4,687,000 | -86,000 |
12 Months or More | -153,000 | ' |
Total | -4,840,000 | -86,000 |
Fair Value | ' | ' |
Less Than 12 Months | 64,060,000 | 37,774,000 |
12 Months or More | 8,213,000 | ' |
Total | 72,273,000 | 37,774,000 |
Unrealized Losses | ' | ' |
Less Than 12 Months | -9,137,000 | -590,000 |
12 Months or More | -172,000 | ' |
Total | -9,309,000 | -590,000 |
Additional information | ' | ' |
Number of securities held | 380 | 269 |
Number of available-for-sale securities held | 160 | 168 |
Number of held-to-maturity securities held | 220 | 101 |
Total unrealized loss for securities over 12 months | 325,000 | ' |
Number of securities with fair values below amortized cost | 237 | 70 |
Number of securities carried with an unrealized loss for over twelve months | ' | 0 |
Agency mortgage-backed securities | ' | ' |
Fair Value | ' | ' |
Less Than 12 Months | 62,034,000 | 6,226,000 |
12 Months or More | 2,731,000 | ' |
Total | 64,765,000 | 6,226,000 |
Unrealized Losses | ' | ' |
Less Than 12 Months | -2,254,000 | -22,000 |
12 Months or More | -153,000 | ' |
Total | -2,407,000 | -22,000 |
Fair Value | ' | ' |
Less Than 12 Months | 4,380,000 | 15,789,000 |
12 Months or More | 8,213,000 | ' |
Total | 12,593,000 | 15,789,000 |
Unrealized Losses | ' | ' |
Less Than 12 Months | -145,000 | -177,000 |
12 Months or More | -172,000 | ' |
Total | -317,000 | -177,000 |
Additional information | ' | ' |
Number of issuers of securities in investment portfolio | 1 | ' |
Holdings of securities as percentage of shareholders' equity, considered as threshold for disclosure purpose | 10.00% | ' |
Number of securities held | 0 | ' |
Corporate bonds | ' | ' |
Fair Value | ' | ' |
Less Than 12 Months | 35,744,000 | ' |
Total | 35,744,000 | ' |
Unrealized Losses | ' | ' |
Less Than 12 Months | -1,739,000 | ' |
Total | -1,739,000 | ' |
Trust preferred securities | ' | ' |
Fair Value | ' | ' |
Less Than 12 Months | 14,306,000 | 5,705,000 |
Total | 14,306,000 | 5,705,000 |
Unrealized Losses | ' | ' |
Less Than 12 Months | -694,000 | -64,000 |
Total | -694,000 | -64,000 |
Municipals - Tax exempt | ' | ' |
Fair Value | ' | ' |
Less Than 12 Months | 59,680,000 | 21,985,000 |
Total | 59,680,000 | 21,985,000 |
Unrealized Losses | ' | ' |
Less Than 12 Months | -8,992,000 | -413,000 |
Total | ($8,992,000) | ($413,000) |
Securities_Details_3
Securities (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Proceeds from sales of securities and the resulting gains and losses | ' | ' | ' | ' |
Proceeds | $24,077 | $26,944 | $26,357 | ' |
Gross gains | 1,105 | 310 | 1,164 | ' |
Gross losses | ' | -272 | ' | ' |
Available-for-sale, Amortized Cost | ' | ' | ' | ' |
Due after one through five years | ' | 2,028 | ' | ' |
Due after five through ten years | ' | 47,012 | ' | ' |
Due after ten years | ' | 20,829 | ' | ' |
Agency mortgage-backed securities | ' | 210,728 | ' | ' |
Total | ' | 280,597 | ' | ' |
Available-for-sale, Estimated Fair Value | ' | ' | ' | ' |
Due after one through five years | ' | 2,124 | ' | ' |
Due after five through ten years | ' | 45,623 | ' | ' |
Due after ten years | ' | 20,210 | ' | ' |
Agency mortgage-backed securities | ' | 212,514 | ' | ' |
Estimated Fair Value | ' | 280,471 | ' | 367,912 |
Held-to-maturity, Amortized Cost | ' | ' | ' | ' |
Due after five through ten years | ' | 2,751 | ' | ' |
Due after ten years | ' | 73,752 | ' | ' |
Agency mortgage-backed securities | ' | 13,229 | ' | ' |
Total | ' | 89,732 | ' | ' |
Held-to-maturity, Estimated Fair Value | ' | ' | ' | ' |
Due after five through ten years | ' | 2,658 | ' | ' |
Due after ten years | ' | 64,935 | ' | ' |
Agency mortgage-backed securities | ' | 12,912 | ' | ' |
Total | ' | $80,505 | ' | ' |
Loans_Details
Loans (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Loans held-for-investment: | ' | ' | ' | ' | ' | ' |
Loans | $893,302 | ' | $812,334 | ' | ' | ' |
Deferred loan origination fees, net | -250 | ' | -21 | ' | ' | ' |
Loans, net of deferred fees | 893,052 | ' | 812,313 | ' | ' | ' |
Allowance for loan losses | -19,342 | -19,342 | -19,027 | -19,124 | -20,023 | -20,700 |
Loans, net | 873,710 | ' | 793,286 | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' |
Loans held-for-investment: | ' | ' | ' | ' | ' | ' |
Loans | 410,933 | ' | 375,469 | ' | ' | ' |
Allowance for loan losses | -13,367 | -12,811 | -12,866 | -13,272 | -13,378 | -13,215 |
Real estate | ' | ' | ' | ' | ' | ' |
Loans held-for-investment: | ' | ' | ' | ' | ' | ' |
Loans | 468,657 | ' | 421,151 | ' | ' | ' |
Allowance for loan losses | -5,894 | -6,388 | -6,034 | -5,732 | -6,539 | -7,338 |
Real estate | Commercial and residential | ' | ' | ' | ' | ' | ' |
Loans held-for-investment: | ' | ' | ' | ' | ' | ' |
Loans | 387,777 | ' | 354,934 | ' | ' | ' |
Real estate | Land and construction | ' | ' | ' | ' | ' | ' |
Loans held-for-investment: | ' | ' | ' | ' | ' | ' |
Loans | 30,780 | ' | 22,352 | ' | ' | ' |
Real estate | Home equity | ' | ' | ' | ' | ' | ' |
Loans held-for-investment: | ' | ' | ' | ' | ' | ' |
Loans | 50,100 | ' | 43,865 | ' | ' | ' |
Consumer | ' | ' | ' | ' | ' | ' |
Loans held-for-investment: | ' | ' | ' | ' | ' | ' |
Loans | 13,712 | ' | 15,714 | ' | ' | ' |
Allowance for loan losses | ($81) | ($143) | ($127) | ($120) | ($106) | ($147) |
Loans_Details_2
Loans (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Changes in allowance for loan losses | ' | ' | ' | ' | ' |
Balance, beginning of year | $19,342 | $20,023 | $19,027 | $20,700 | ' |
Charge-offs | -294 | -2,250 | -1,309 | -4,586 | ' |
Recoveries | 828 | 151 | 2,428 | 895 | ' |
Net (charge-offs)/recoveries | 534 | -2,099 | 1,119 | -3,691 | ' |
Provision (credit) for loan losses | -534 | 1,200 | -804 | 2,115 | ' |
Balance, end of year | 19,342 | 19,124 | 19,342 | 19,124 | ' |
Balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method | ' | ' | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 3,278 | ' | 3,278 | ' | 2,740 |
Allowance for loan losses, Collectively evaluated for impairment | 16,064 | ' | 16,064 | ' | 16,287 |
Total allowance balance | 19,342 | 19,124 | 19,342 | 19,124 | ' |
Loans, Individually evaluated for impairment | 15,127 | ' | 15,127 | ' | 19,644 |
Loans, Collectively evaluated for impairment | 878,175 | ' | 878,175 | ' | 792,690 |
Total loan balance | 893,302 | ' | 893,302 | ' | 812,334 |
Commercial | ' | ' | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' | ' | ' |
Balance, beginning of year | 12,811 | 13,378 | 12,866 | 13,215 | ' |
Charge-offs | -254 | -916 | -1,213 | -3,106 | ' |
Recoveries | 820 | 149 | 2,158 | 670 | ' |
Net (charge-offs)/recoveries | 566 | -767 | 945 | -2,436 | ' |
Provision (credit) for loan losses | -10 | 661 | -444 | 2,493 | ' |
Balance, end of year | 13,367 | 13,272 | 13,367 | 13,272 | ' |
Balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method | ' | ' | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 2,426 | ' | 2,426 | ' | 1,963 |
Allowance for loan losses, Collectively evaluated for impairment | 10,941 | ' | 10,941 | ' | 10,903 |
Total allowance balance | 13,367 | 13,272 | 13,367 | 13,272 | ' |
Loans, Individually evaluated for impairment | 5,736 | ' | 5,736 | ' | 10,161 |
Loans, Collectively evaluated for impairment | 405,197 | ' | 405,197 | ' | 365,308 |
Total loan balance | 410,933 | ' | 410,933 | ' | 375,469 |
Real estate | ' | ' | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' | ' | ' |
Balance, beginning of year | 6,388 | 6,539 | 6,034 | 7,338 | ' |
Charge-offs | -40 | -1,334 | -96 | -1,480 | ' |
Recoveries | 7 | 2 | 269 | 225 | ' |
Net (charge-offs)/recoveries | -33 | -1,332 | 173 | -1,255 | ' |
Provision (credit) for loan losses | -461 | 525 | -313 | -351 | ' |
Balance, end of year | 5,894 | 5,732 | 5,894 | 5,732 | ' |
Balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method | ' | ' | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 827 | ' | 827 | ' | 760 |
Allowance for loan losses, Collectively evaluated for impairment | 5,067 | ' | 5,067 | ' | 5,274 |
Total allowance balance | 5,894 | 5,732 | 5,894 | 5,732 | ' |
Loans, Individually evaluated for impairment | 9,259 | ' | 9,259 | ' | 9,336 |
Loans, Collectively evaluated for impairment | 459,398 | ' | 459,398 | ' | 411,815 |
Total loan balance | 468,657 | ' | 468,657 | ' | 421,151 |
Consumer | ' | ' | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' | ' | ' |
Balance, beginning of year | 143 | 106 | 127 | 147 | ' |
Recoveries | 1 | ' | 1 | ' | ' |
Net (charge-offs)/recoveries | 1 | ' | 1 | ' | ' |
Provision (credit) for loan losses | -63 | 14 | -47 | -27 | ' |
Balance, end of year | 81 | 120 | 81 | 120 | ' |
Balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method | ' | ' | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 25 | ' | 25 | ' | 17 |
Allowance for loan losses, Collectively evaluated for impairment | 56 | ' | 56 | ' | 110 |
Total allowance balance | 81 | 120 | 81 | 120 | ' |
Loans, Individually evaluated for impairment | 132 | ' | 132 | ' | 147 |
Loans, Collectively evaluated for impairment | 13,580 | ' | 13,580 | ' | 15,567 |
Total loan balance | $13,712 | ' | $13,712 | ' | $15,714 |
Loans_Details_3
Loans (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total with no related allowance recorded | $7,987 | ' | $7,987 | ' | $15,035 |
Total with an allowance recorded | 7,293 | ' | 7,293 | ' | 7,303 |
Total | 15,280 | ' | 15,280 | ' | 22,338 |
Recorded Investment | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 7,903 | ' | 7,903 | ' | 14,083 |
Total with an allowance recorded | 7,224 | ' | 7,224 | ' | 5,561 |
Total | 15,127 | 19,822 | 15,127 | 19,822 | 19,644 |
Total with an allowance recorded, Allowance for Loan Losses Allocated | 3,278 | ' | 3,278 | ' | 2,740 |
Average impaired loans with interest recognized and cash-basis interest earned on impaired loans | ' | ' | ' | ' | ' |
Average of impaired loans during the period | 15,086 | 17,397 | 17,050 | 17,324 | ' |
Interest income during impairment | ' | ' | ' | 15 | ' |
Cash-basis interest earned | ' | ' | ' | 15 | ' |
Commercial | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 682 | ' | 682 | ' | 7,829 |
Total with an allowance recorded | 5,207 | ' | 5,207 | ' | 3,678 |
Recorded Investment | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 598 | ' | 598 | ' | 6,978 |
Total with an allowance recorded | 5,138 | ' | 5,138 | ' | 3,182 |
Total with an allowance recorded, Allowance for Loan Losses Allocated | 2,426 | ' | 2,426 | ' | 1,963 |
Average impaired loans with interest recognized and cash-basis interest earned on impaired loans | ' | ' | ' | ' | ' |
Average of impaired loans during the period | 5,539 | 11,138 | 7,342 | 11,294 | ' |
Real estate | Commercial and residential | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 3,452 | ' | 3,452 | ' | 2,755 |
Total with an allowance recorded | 1,543 | ' | 1,543 | ' | 3,183 |
Recorded Investment | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 3,452 | ' | 3,452 | ' | 2,741 |
Total with an allowance recorded | 1,543 | ' | 1,543 | ' | 1,937 |
Total with an allowance recorded, Allowance for Loan Losses Allocated | 463 | ' | 463 | ' | 465 |
Average impaired loans with interest recognized and cash-basis interest earned on impaired loans | ' | ' | ' | ' | ' |
Average of impaired loans during the period | 5,032 | 3,329 | 5,061 | 3,051 | ' |
Interest income during impairment | ' | ' | ' | 1 | ' |
Cash-basis interest earned | ' | ' | ' | 1 | ' |
Real estate | Land and construction | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 1,794 | ' | 1,794 | ' | 2,310 |
Total with an allowance recorded | 55 | ' | 55 | ' | ' |
Recorded Investment | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 1,794 | ' | 1,794 | ' | 2,223 |
Total with an allowance recorded | 55 | ' | 55 | ' | ' |
Total with an allowance recorded, Allowance for Loan Losses Allocated | 8 | ' | 8 | ' | ' |
Average impaired loans with interest recognized and cash-basis interest earned on impaired loans | ' | ' | ' | ' | ' |
Average of impaired loans during the period | 1,989 | 2,228 | 2,095 | 2,615 | ' |
Interest income during impairment | ' | ' | ' | 14 | ' |
Cash-basis interest earned | ' | ' | ' | 14 | ' |
Real estate | Home equity | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 2,059 | ' | 2,059 | ' | 2,141 |
Total with an allowance recorded | 356 | ' | 356 | ' | 295 |
Recorded Investment | ' | ' | ' | ' | ' |
Total with no related allowance recorded | 2,059 | ' | 2,059 | ' | 2,141 |
Total with an allowance recorded | 356 | ' | 356 | ' | 295 |
Total with an allowance recorded, Allowance for Loan Losses Allocated | 356 | ' | 356 | ' | 295 |
Average impaired loans with interest recognized and cash-basis interest earned on impaired loans | ' | ' | ' | ' | ' |
Average of impaired loans during the period | 2,393 | 546 | 2,414 | 281 | ' |
Consumer | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total with an allowance recorded | 132 | ' | 132 | ' | 147 |
Recorded Investment | ' | ' | ' | ' | ' |
Total with an allowance recorded | 132 | ' | 132 | ' | 147 |
Total with an allowance recorded, Allowance for Loan Losses Allocated | 25 | ' | 25 | ' | 17 |
Average impaired loans with interest recognized and cash-basis interest earned on impaired loans | ' | ' | ' | ' | ' |
Average of impaired loans during the period | $133 | $156 | $138 | $83 | ' |
Loans_Details_4
Loans (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Nonperforming loans by class | ' | ' | ' |
Nonaccrual loans - held-for-investment | $14,615,000 | $17,335,000 | $17,396,000 |
Restructured and loans over 90 days past due and still accruing | 502,000 | 859,000 | 1,722,000 |
Total nonperforming loans | 15,117,000 | 18,194,000 | 19,118,000 |
Other restructured loans | 10,000 | 1,450,000 | 704,000 |
Total | 15,127,000 | 19,644,000 | 19,822,000 |
Nonaccrual | 14,615,000 | 17,335,000 | ' |
Aging of past due loans by class of loans | ' | ' | ' |
30-59 Days Past Due | 1,232,000 | 4,044,000 | ' |
60-89 Days Past Due | 716,000 | 355,000 | ' |
90 Days or Greater Past Due | 4,837,000 | 10,533,000 | ' |
Total Past Due | 6,785,000 | 14,932,000 | ' |
Loans Not Past Due | 886,517,000 | 797,402,000 | ' |
Total loan balance | 893,302,000 | 812,334,000 | ' |
30 days or greater past due nonaccrual loans | 5,603,000 | 12,020,000 | ' |
Less than 30 days past due nonaccrual loans held-for-investment | 9,012,000 | 5,315,000 | ' |
Commercial | ' | ' | ' |
Nonperforming loans by class | ' | ' | ' |
Restructured and loans over 90 days past due and still accruing | 502,000 | 859,000 | ' |
Total nonperforming loans | 5,726,000 | 8,711,000 | ' |
Nonaccrual | 5,224,000 | 7,852,000 | ' |
Aging of past due loans by class of loans | ' | ' | ' |
30-59 Days Past Due | 1,098,000 | 1,699,000 | ' |
60-89 Days Past Due | 716,000 | 355,000 | ' |
90 Days or Greater Past Due | 2,690,000 | 5,120,000 | ' |
Total Past Due | 4,504,000 | 7,174,000 | ' |
Loans Not Past Due | 406,429,000 | 368,295,000 | ' |
Total loan balance | 410,933,000 | 375,469,000 | ' |
Real estate | ' | ' | ' |
Aging of past due loans by class of loans | ' | ' | ' |
Total loan balance | 468,657,000 | 421,151,000 | ' |
Real estate | Commercial and residential | ' | ' | ' |
Nonperforming loans by class | ' | ' | ' |
Total nonperforming loans | 4,995,000 | 4,676,000 | ' |
Nonaccrual | 4,995,000 | 4,676,000 | ' |
Aging of past due loans by class of loans | ' | ' | ' |
30-59 Days Past Due | 134,000 | 1,603,000 | ' |
90 Days or Greater Past Due | 1,548,000 | 3,290,000 | ' |
Total Past Due | 1,682,000 | 4,893,000 | ' |
Loans Not Past Due | 386,095,000 | 350,041,000 | ' |
Total loan balance | 387,777,000 | 354,934,000 | ' |
Real estate | Land and construction | ' | ' | ' |
Nonperforming loans by class | ' | ' | ' |
Total nonperforming loans | 1,849,000 | 2,223,000 | ' |
Nonaccrual | 1,849,000 | 2,223,000 | ' |
Aging of past due loans by class of loans | ' | ' | ' |
90 Days or Greater Past Due | 55,000 | 78,000 | ' |
Total Past Due | 55,000 | 78,000 | ' |
Loans Not Past Due | 30,725,000 | 22,274,000 | ' |
Total loan balance | 30,780,000 | 22,352,000 | ' |
Real estate | Home equity | ' | ' | ' |
Nonperforming loans by class | ' | ' | ' |
Total nonperforming loans | 2,415,000 | 2,437,000 | ' |
Nonaccrual | 2,415,000 | 2,437,000 | ' |
Aging of past due loans by class of loans | ' | ' | ' |
30-59 Days Past Due | ' | 742,000 | ' |
90 Days or Greater Past Due | 447,000 | 2,045,000 | ' |
Total Past Due | 447,000 | 2,787,000 | ' |
Loans Not Past Due | 49,653,000 | 41,078,000 | ' |
Total loan balance | 50,100,000 | 43,865,000 | ' |
Consumer | ' | ' | ' |
Nonperforming loans by class | ' | ' | ' |
Total nonperforming loans | 132,000 | 147,000 | ' |
Nonaccrual | 132,000 | 147,000 | ' |
Aging of past due loans by class of loans | ' | ' | ' |
90 Days or Greater Past Due | 97,000 | ' | ' |
Total Past Due | 97,000 | ' | ' |
Loans Not Past Due | 13,615,000 | 15,714,000 | ' |
Total loan balance | $13,712,000 | $15,714,000 | ' |
Loans_Details_5
Loans (Details 5) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Loan portfolio by loan type and credit quality classification | ' | ' |
Balance to report | $873,710,000 | $793,286,000 |
Total loan balance | 893,302,000 | 812,334,000 |
Nonclassified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 866,221,000 | 775,851,000 |
Classified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 27,081,000 | 36,483,000 |
Loan classified as loss | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Recovery value | 0 | ' |
Balance to report | 0 | 0 |
Commercial | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 410,933,000 | 375,469,000 |
Commercial | Nonclassified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 396,102,000 | 355,440,000 |
Commercial | Classified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 14,831,000 | 20,029,000 |
Real estate | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 468,657,000 | 421,151,000 |
Real estate | Commercial and residential | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 387,777,000 | 354,934,000 |
Real estate | Commercial and residential | Nonclassified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 380,470,000 | 345,045,000 |
Real estate | Commercial and residential | Classified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 7,307,000 | 9,889,000 |
Real estate | Land and construction | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 30,780,000 | 22,352,000 |
Real estate | Land and construction | Nonclassified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 28,931,000 | 18,858,000 |
Real estate | Land and construction | Classified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 1,849,000 | 3,494,000 |
Real estate | Home equity | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 50,100,000 | 43,865,000 |
Real estate | Home equity | Nonclassified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 47,364,000 | 41,187,000 |
Real estate | Home equity | Classified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 2,736,000 | 2,678,000 |
Consumer | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 13,712,000 | 15,714,000 |
Consumer | Nonclassified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | 13,354,000 | 15,321,000 |
Consumer | Classified | ' | ' |
Loan portfolio by loan type and credit quality classification | ' | ' |
Total loan balance | $358,000 | $393,000 |
Loans_Details_6
Loans (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | item | item | ||
Loans | ' | ' | ' | ' |
Recorded investment of troubled debt restructurings | ' | $2,045,000 | ' | $4,107,000 |
Troubled debt restructurings, nonaccrual loans | ' | 1,534,000 | ' | 1,798,000 |
Troubled debt restructurings, accruing loans | ' | 511,000 | ' | 2,309,000 |
Specific reserves | ' | 722,000 | ' | 1,152,000 |
Additional amount of loan classified as a troubled debt restructurings | ' | 0 | ' | 0 |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' |
Number of Contracts | 2 | ' | 4 | ' |
Pre-modification Outstanding Recorded Investment | 91,000 | ' | 274,000 | ' |
Post-modification Outstanding Recorded Investment | 91,000 | ' | 274,000 | ' |
Net charge-offs under troubled debt restructurings | 0 | ' | 0 | ' |
Increased allowance for loan losses due to troubled debt restructurings | 21,000 | ' | 59,000 | ' |
Default period contractually past due under modified terms | ' | '30 days | ' | ' |
Number of defaults on troubled debt restructurings | 0 | 0 | 0 | ' |
Commercial | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' |
Number of Contracts | ' | ' | 3 | ' |
Pre-modification Outstanding Recorded Investment | ' | ' | 163,000 | ' |
Post-modification Outstanding Recorded Investment | ' | ' | 163,000 | ' |
Consumer | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' |
Number of Contracts | 2 | ' | 1 | ' |
Pre-modification Outstanding Recorded Investment | 91,000 | ' | 111,000 | ' |
Post-modification Outstanding Recorded Investment | $91,000 | ' | $111,000 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Net deferred tax assets | ' | ' |
Net deferred tax assets | $23,673,000 | $19,264,000 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Supplemental Retirement Plan | Supplemental Retirement Plan | Supplemental Retirement Plan | Supplemental Retirement Plan | Split-Dollar Life Insurance Benefit Plan | Split-Dollar Life Insurance Benefit Plan | |
Benefit plans | ' | ' | ' | ' | ' | ' |
Plan assets associated with the plan | $0 | ' | $0 | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' | ' | ' |
Service cost | 303 | 294 | 909 | 882 | ' | ' |
Interest cost | 196 | 193 | 588 | 579 | 133 | 185 |
Amortization of prior service cost | ' | 7 | ' | 21 | ' | ' |
Amortization of net actuarial loss | 73 | 63 | 219 | 189 | ' | ' |
Net periodic benefit cost | 572 | 557 | 1,716 | 1,671 | ' | ' |
Change in projected benefit obligation | ' | ' | ' | ' | ' | ' |
Projected benefit obligation at beginning of year | ' | ' | ' | ' | 4,717 | 4,525 |
Interest cost | 196 | 193 | 588 | 579 | 133 | 185 |
Actuarial gain | ' | ' | ' | ' | ' | 7 |
Projected benefit obligation at end of period | ' | ' | ' | ' | $4,850 | $4,717 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 9 Months Ended | |||
Jun. 12, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 07, 2012 | Nov. 30, 2008 | Mar. 31, 2012 | Nov. 21, 2008 | Jun. 30, 2010 | Sep. 30, 2013 | Jun. 21, 2010 | |
Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series C Preferred Stock | Series C Preferred Stock | Series C Preferred Stock | ||||
Shareholders' equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | ' | ' | 40,000 | ' | ' | 21,004 | ' | ' |
Number of common stock into which preferred stock are convertible (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 5,601,000 | ' |
Value of stock issued | ' | ' | ' | ' | $40,000,000 | ' | ' | ' | ' | ' |
Liquidation preference (in dollars per share) | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | $1,000 |
Dividends received from HBC as approved by DFI | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' |
Accelerated accretion of remaining issuance discount | ' | ' | ' | 765,000 | ' | ' | ' | ' | ' | ' |
Reduction in amount of net income available to common shareholders due to dividend and discount accretion on preferred stock | ' | ' | 1,206,000 | ' | ' | 1,206,000 | ' | ' | ' | ' |
Number of shares issuable upon exercise of warrant that has been repurchased | 462,963 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrant (in dollars per share) | $12.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for repurchase of warrant | $140,000 | $140,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $3.75 | ' | ' |
Fair_Value_Details
Fair Value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Foreclosed assets: | $631,000 | $1,270,000 |
Recurring basis | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Transfers between Level 1 and Level 2 | 0 | 0 |
Recurring basis | Balance | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
I/O strip receivables | 1,647,000 | 1,786,000 |
Recurring basis | Balance | Agency mortgage-backed securities | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Available-for-sale securities | 212,514,000 | 291,244,000 |
Recurring basis | Balance | Corporate bonds | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Available-for-sale securities | 47,747,000 | 55,588,000 |
Recurring basis | Balance | Trust preferred securities | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Available-for-sale securities | 20,210,000 | 21,080,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
I/O strip receivables | 1,647,000 | 1,786,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Available-for-sale securities | 212,514,000 | 291,244,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Available-for-sale securities | 47,747,000 | 55,588,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Trust preferred securities | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Available-for-sale securities | 20,210,000 | 21,080,000 |
Non-recurring basis | Balance | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 7,466,000 | 9,172,000 |
Foreclosed assets: | 631,000 | 1,270,000 |
Non-recurring basis | Balance | Land and construction | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Foreclosed assets: | 602,000 | 1,187,000 |
Non-recurring basis | Balance | Commercial | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 3,012,000 | 3,645,000 |
Foreclosed assets: | 29,000 | 83,000 |
Non-recurring basis | Balance | Real estate | Commercial and residential | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 2,984,000 | 3,674,000 |
Non-recurring basis | Balance | Real estate | Land and construction | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 1,363,000 | 1,723,000 |
Non-recurring basis | Balance | Consumer | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 107,000 | 130,000 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 7,466,000 | 9,172,000 |
Foreclosed assets: | 631,000 | 1,270,000 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Land and construction | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Foreclosed assets: | 602,000 | 1,187,000 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Commercial | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 3,012,000 | 3,645,000 |
Foreclosed assets: | 29,000 | 83,000 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Real estate | Commercial and residential | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 2,984,000 | 3,674,000 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Real estate | Land and construction | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | 1,363,000 | 1,723,000 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Consumer | ' | ' |
Financial assets and liabilities measured on a recurring and non-recurring basis | ' | ' |
Impaired loans - held-for-investment: | $107,000 | $130,000 |
Fair_Value_Details_2
Fair Value (Details 2) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Impaired loans held-for-investment | ' | ' |
Impaired loans held-for-investment | $15,127,000 | $19,644,000 |
Specific valuation allowance | -3,278,000 | -2,740,000 |
Impaired loans held-for-investment carried at fair value | ' | ' |
Partial charge-offs | 153,000 | 2,694,000 |
Additional provision for loan losses | 1,072,000 | 3,856,000 |
Net carrying amount of foreclosed assets | 631,000 | 1,270,000 |
Valuation allowance on foreclosed assets | 0 | 0 |
Carried at fair value | ' | ' |
Impaired loans held-for-investment | ' | ' |
Impaired loans held-for-investment | 10,744,000 | 11,912,000 |
Carried at cost | ' | ' |
Impaired loans held-for-investment | ' | ' |
Impaired loans held-for-investment | 4,383,000 | 7,732,000 |
Carried at fair value, net | ' | ' |
Impaired loans held-for-investment | ' | ' |
Impaired loans held-for-investment carried at fair value, net | $7,466,000 | $9,172,000 |
Fair_Value_Details_3
Fair Value (Details 3) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Foreclosed assets, Fair Value | 631,000 | 1,270,000 |
Non-recurring basis | Level 3 | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Impaired loans- held-for-investment, Fair Value | 7,466,000 | 9,172,000 |
Foreclosed assets, Fair Value | 631,000 | 1,270,000 |
Non-recurring basis | Level 3 | Land and construction | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Foreclosed assets, Fair Value | 602,000 | 1,187,000 |
Non-recurring basis | Level 3 | Land and construction | Market Approach | Minimum | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 1.00% | 0.00% |
Non-recurring basis | Level 3 | Land and construction | Market Approach | Maximum | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 16.00% | 23.00% |
Non-recurring basis | Level 3 | Land and construction | Market Approach | Weighted average | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 7.00% | 6.00% |
Non-recurring basis | Level 3 | Commercial | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Impaired loans- held-for-investment, Fair Value | 3,012,000 | 3,645,000 |
Foreclosed assets, Fair Value | 29,000 | 83,000 |
Non-recurring basis | Level 3 | Commercial | Market Approach | Minimum | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 2.00% | 0.00% |
Non-recurring basis | Level 3 | Commercial | Market Approach | Maximum | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 3.00% | 4.00% |
Non-recurring basis | Level 3 | Commercial | Market Approach | Weighted average | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 2.00% | 1.00% |
Non-recurring basis | Level 3 | Real estate | Commercial and residential | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Impaired loans- held-for-investment, Fair Value | 2,984,000 | 3,674,000 |
Non-recurring basis | Level 3 | Real estate | Commercial and residential | Market Approach | Minimum | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 1.00% | 0.00% |
Non-recurring basis | Level 3 | Real estate | Commercial and residential | Market Approach | Maximum | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 15.00% | 13.00% |
Non-recurring basis | Level 3 | Real estate | Commercial and residential | Market Approach | Weighted average | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 1.00% | 1.00% |
Non-recurring basis | Level 3 | Real estate | Land and construction | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Impaired loans- held-for-investment, Fair Value | 1,363,000 | 1,723,000 |
Non-recurring basis | Level 3 | Real estate | Land and construction | Market Approach | Minimum | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 1.00% | 1.00% |
Non-recurring basis | Level 3 | Real estate | Land and construction | Market Approach | Maximum | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 2.00% | 4.00% |
Non-recurring basis | Level 3 | Real estate | Land and construction | Market Approach | Weighted average | ' | ' |
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ' |
Discount adjustment for differences between comparable sales (as a percent) | 2.00% | 2.00% |
Fair_Value_Details_4
Fair Value (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying Amounts | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | $41,898 | $373,565 |
Securities available-for-sale | 280,471 | 367,912 |
Securities held-to-maturity | 89,732 | 51,472 |
Loans (including loans held-for-sale), net | 880,685 | 796,695 |
FHLB and FRB stock | 10,792 | 10,728 |
Accrued interest receivable | 4,302 | 3,773 |
Loan servicing rights and I/O strips receivables | 2,212 | 2,495 |
Liabilities | ' | ' |
Time deposits | 286,558 | 318,664 |
Other deposits | 908,979 | 1,160,704 |
Subordinated debt | ' | 9,279 |
Accrued interest payable | 193 | 277 |
Estimated Fair Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 41,898 | 373,565 |
Securities available-for-sale | 280,471 | 367,912 |
Securities held-to-maturity | 80,505 | 50,964 |
Loans (including loans held-for-sale), net | 875,786 | 797,320 |
Accrued interest receivable | 4,302 | 3,773 |
Loan servicing rights and I/O strips receivables | 4,236 | 4,715 |
Liabilities | ' | ' |
Time deposits | 286,988 | 319,476 |
Other deposits | 908,979 | 1,160,704 |
Subordinated debt | ' | 5,400 |
Accrued interest payable | 193 | 277 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 41,898 | 373,565 |
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets | ' | ' |
Securities available-for-sale | 280,471 | 367,912 |
Securities held-to-maturity | 80,505 | 50,964 |
Loans (including loans held-for-sale), net | 6,975 | 3,409 |
Accrued interest receivable | 1,883 | 1,514 |
Loan servicing rights and I/O strips receivables | 4,236 | 4,715 |
Liabilities | ' | ' |
Time deposits | 286,988 | 319,476 |
Other deposits | 908,979 | 1,160,704 |
Accrued interest payable | 193 | 277 |
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets | ' | ' |
Loans (including loans held-for-sale), net | 868,811 | 793,911 |
Accrued interest receivable | 2,419 | 2,259 |
Liabilities | ' | ' |
Subordinated debt | ' | $5,400 |
Equity_Plan_Details
Equity Plan (Details) | 9 Months Ended |
Sep. 30, 2013 | |
2013 Plan | ' |
Equity plan | ' |
Number of equity awards issued | 0 |
Number of shares available for future grants | 1,750,000 |
Options | 2004 Plan | ' |
Equity plan | ' |
Vesting period | '4 years |
Options | 2004 Plan | Maximum | ' |
Equity plan | ' |
Expiration term | '10 years |
Equity_Plan_Details_2
Equity Plan (Details 2) (2004 Plan, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Options | ' |
Number of Shares | ' |
Outstanding at the beginning of the period (in shares) | 1,314,347 |
Granted (in shares) | 272,050 |
Exercised (in shares) | -8,874 |
Forfeited or expired (in shares) | -44,102 |
Outstanding at the end of the period (in shares) | 1,533,421 |
Vested or expected to vest (in shares) | 1,456,750 |
Exercisable at the end of the period (in shares) | 1,066,878 |
Weighted Average Exercise Price | ' |
Outstanding at the beginning of the period (in dollars per share) | $12.90 |
Granted (in dollars per share) | $6.57 |
Exercised (in dollars per share) | $3.94 |
Forfeited or expired (in dollars per share) | $12.31 |
Outstanding at the end of the period (in dollars per share) | $11.84 |
Weighted Average Remaining Contractual Life (Years) | ' |
Outstanding at the end of the period | '5 years 9 months 18 days |
Vested or expected to vest | '5 years 9 months 18 days |
Exercisable at the end of the period | '4 years 6 months |
Aggregate Intrinsic Value | ' |
Outstanding at the end of the period (in dollars) | $1,542,000 |
Vested or expected to vest (in dollars) | 1,465,000 |
Exercisable at the end of the period (in dollars) | 862,000 |
Unrecognized compensation cost information | ' |
Total unrecognized compensation cost related to nonvested stock options granted (in dollars) | 1,749,000 |
Expected weighted-average period for recognition of compensation costs related to nonvested stock options | '3 years |
Restricted stock | ' |
Unrecognized compensation cost information | ' |
Total unrecognized compensation cost related to nonvested stock options granted (in dollars) | $153,000 |
Expected weighted-average period for recognition of compensation costs related to nonvested stock options | '1 year |
Number of Shares | ' |
Nonvested shares at the beginning of the period (in shares) | 88,000 |
Granted (in shares) | 10,000 |
Vested (in shares) | -40,000 |
Nonvested shares at the end of the period (in shares) | 58,000 |
Weighted Average Grant Date Fair Value | ' |
Nonvested shares at the beginning of the period (in dollars per share) | $5.74 |
Granted (in dollars per share) | $6.51 |
Vested (in dollars per share) | $5.16 |
Nonvested shares at the end of the period (in dollars per share) | $6.28 |
Subordinated_Debt_Details
Subordinated Debt (Details) (Subordinated debentures, USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | |
Heritage Capital Trust I | Heritage Statutory Trust I | Heritage Statutory Trust II | Heritage Statutory Trust III | Floating-Rate Sub Debt | Floating-Rate Sub Debt | ||||
Subordinated Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of interest payment deferment | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | 10.88% | 10.60% | ' | ' | ' | ' |
Subordinated debt, redemption amount | $9,000,000 | ' | ' | $7,000,000 | $7,000,000 | $5,000,000 | $4,000,000 | ' | ' |
Premium cost | ' | ' | ' | 304,500 | 296,800 | ' | ' | ' | ' |
Dividends received from HBC as approved by DFI | ' | 15,000,000 | ' | ' | ' | ' | ' | 9,000,000 | ' |
Early payoff premium on redemption of debt | ' | ' | 601,300 | ' | ' | ' | ' | ' | ' |
Agency origination fees incurred | ' | ' | ' | ' | ' | ' | ' | ' | $167,000 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent event, USD $) | Oct. 24, 2013 |
Subsequent event | ' |
Subsequent event | ' |
Dividends per share of common stock and Series C preferred stock (on an as converted basis) | $0.03 |