Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | CARDINAL FINANCIAL CORP | |
Entity Central Index Key | 1,060,523 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
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 | 32,459,179 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 24,081 | $ 24,760 |
Federal funds sold | 11,481 | 14,577 |
Total cash and cash equivalents | 35,562 | 39,337 |
Investment securities available-for-sale | 402,522 | 414,077 |
Investment securities held-to-maturity (fair value of $3,488 and $3,311 at June 30, 2016 and December 31, 2015, respectively) | 3,796 | 3,836 |
Investment securities - trading | 6,489 | 5,881 |
Total investment securities | 412,807 | 423,794 |
Other investments | 18,136 | 20,967 |
Loans held for sale | 456,359 | 383,768 |
Loans receivable, net of deferred fees and costs | 3,156,871 | 3,056,310 |
Allowance for loan losses | (32,984) | (31,723) |
Loans receivable, net | 3,123,887 | 3,024,587 |
Premises and equipment, net | 24,273 | 25,163 |
Deferred tax asset, net | 4,658 | 7,970 |
Goodwill and intangibles, net | 36,262 | 36,576 |
Bank-owned life insurance | 33,213 | 32,978 |
Other real estate owned | 253 | |
Accrued interest receivable and other assets | 52,009 | 34,528 |
Total assets | 4,197,166 | 4,029,921 |
Liabilities and Shareholders' Equity | ||
Non-interest bearing deposits | 710,318 | 657,398 |
Interest bearing deposits | 2,534,488 | 2,375,373 |
Total deposits | 3,244,806 | 3,032,771 |
Other borrowed funds | 450,696 | 537,965 |
Mortgage funding checks | 23,921 | 12,554 |
Escrow liabilities | 2,491 | 2,676 |
Accrued interest payable and other liabilities | 37,320 | 30,808 |
Total liabilities | 3,759,234 | 3,616,774 |
Common stock, $1 par value; 50,000,000 and 50,000,000, Shares authorized; 32,000,000 and 32,373,433 Shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 32,441 | 32,373 |
Additional paid-in capital | 209,199 | 207,429 |
Retained earnings | 185,681 | 166,303 |
Accumulated other comprehensive income, net | 10,611 | 7,042 |
Total shareholders' equity | 437,932 | 413,147 |
Total liabilities and shareholders' equity | $ 4,197,166 | $ 4,029,921 |
CONSOLIDATED STATEMENTS OF CON3
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
CONSOLIDATED STATEMENTS OF CONDITION | ||
Investment securities held-to-maturity, market value (in dollars) | $ 3,488 | $ 3,311 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, Shares authorized | 50,000,000 | 50,000,000 |
Common stock, Shares issued | 32,441,279 | 32,373,433 |
Common stock, Shares outstanding | 32,441,279 | 32,373,433 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Loans receivable | $ 31,308,000 | $ 27,967,000 | $ 62,355,000 | $ 55,463,000 |
Loans held for sale | 3,388,000 | 3,886,000 | 6,344,000 | 6,370,000 |
Federal funds sold | 37,000 | 12,000 | 102,000 | 40,000 |
Investment securities available-for-sale | 3,017,000 | 2,599,000 | 6,176,000 | 5,314,000 |
Investment securities held-to-maturity | 14,000 | 18,000 | 28,000 | 39,000 |
Other investments | 216,000 | 139,000 | 413,000 | 295,000 |
Total interest income | 37,980,000 | 34,621,000 | 75,418,000 | 67,521,000 |
Interest expense: | ||||
Deposits | 4,542,000 | 3,903,000 | 9,014,000 | 7,389,000 |
Other borrowed funds | 1,915,000 | 1,868,000 | 4,175,000 | 3,843,000 |
Total interest expense | 6,457,000 | 5,771,000 | 13,189,000 | 11,232,000 |
Net interest income | 31,523,000 | 28,850,000 | 62,229,000 | 56,289,000 |
Provision for loan losses | 430,000 | 1,356,000 | 680,000 | 1,486,000 |
Net interest income after provision for loan losses | 31,093,000 | 27,494,000 | 61,549,000 | 54,803,000 |
Non-interest income: | ||||
Service charges on deposit accounts | 581,000 | 576,000 | 1,132,000 | 1,121,000 |
Loan fees | 359,000 | 491,000 | 668,000 | 945,000 |
Investment fee income | 84,000 | 143,000 | 169,000 | 258,000 |
Realized and unrealized gains on mortgage banking activities | 15,309,000 | 11,112,000 | 29,448,000 | 27,278,000 |
Net realized gain on investment securities-trading | 304,000 | 176,000 | 108,000 | 176,000 |
Net realized gain (loss) on investment securities-available for sale | 3,614,000 | 180,000 | 3,726,000 | 382,000 |
Litigation settlement | 2,950,000 | 2,950,000 | ||
Increase in cash surrender value of bank-owned life insurance | 111,000 | 95,000 | 235,000 | 213,000 |
Other income | 127,000 | 6,000 | 272,000 | 11,000 |
Total non-interest income | 20,489,000 | 15,729,000 | 35,758,000 | 33,334,000 |
Non-interest expense: | ||||
Salary and benefits | 16,037,000 | 11,963,000 | 31,534,000 | 24,044,000 |
Occupancy | 2,448,000 | 2,347,000 | 5,040,000 | 4,831,000 |
Professional fees | 549,000 | 1,137,000 | 1,684,000 | 2,726,000 |
Depreciation | 833,000 | 845,000 | 1,677,000 | 1,721,000 |
Data processing & communications | 1,517,000 | 1,459,000 | 2,863,000 | 2,963,000 |
FDIC insurance premiums | 516,000 | 516,000 | 1,032,000 | 1,032,000 |
Mortgage loan repurchases and settlements | 100,000 | |||
Loss on extinguishment of debt | 3,638,000 | 3,638,000 | ||
Merger and acquisition expense | 3,000 | 471,000 | ||
Amortization of intangibles | 152,000 | 188,000 | 314,000 | 385,000 |
Other operating expenses | 4,427,000 | 4,420,000 | 8,527,000 | 8,849,000 |
Total non-interest expense | 30,117,000 | 22,878,000 | 56,409,000 | 47,022,000 |
Income before income taxes | 21,465,000 | 20,345,000 | 40,898,000 | 41,115,000 |
Provision for income taxes | 7,364,000 | 6,966,000 | 13,730,000 | 14,005,000 |
Net income | $ 14,101,000 | $ 13,379,000 | $ 27,168,000 | $ 27,110,000 |
Earnings per common share - basic | $ 0.43 | $ 0.41 | $ 0.82 | $ 0.83 |
Earnings per common share - diluted | $ 0.42 | $ 0.40 | $ 0.81 | $ 0.82 |
Weighted-average common shares outstanding - basic | 33,033 | 32,724 | 33,005 | 32,682 |
Weighted-average common shares outstanding - diluted | 33,569 | 33,207 | 33,499 | 33,132 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 14,101 | $ 13,379 | $ 27,168 | $ 27,110 |
Unrealized gain (loss) on available-for-sale investment securities: | ||||
Unrealized holding gain (loss) arising during the period, net of tax expense of $1,420 and $3,476 for the three and six months ended June 30, 2016, respectively, net of tax benefit of $1,886 and $1,511 for the three and six months ended June 30, 2015, respectively. | 2,537 | (3,295) | 6,206 | (2,481) |
Less: reclassification adjustment for net gains included in net income net of tax expense of $1,298 and $1,338 thousand for the three and six months ended June 30, 2016, respectively, and net of tax expense $61 and $129 for the three and six months ended June 30, 2015, respectively. | (2,316) | (119) | (2,388) | (253) |
Unrealized gain (loss) on derivative instruments designated as cash flow hedges, net of tax expense of $113 and net of tax benefit $141 for the three and six months ended June 30, 2016, respectively, net of tax expense of $167 and $30 for the three and six months ended June 30, 2015, respectively. | 201 | 300 | (249) | 55 |
Other comprehensive income (loss) | 422 | (3,114) | 3,569 | (2,679) |
Comprehensive income | $ 14,523 | $ 10,265 | $ 30,737 | $ 24,431 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Unrealized holding gain (loss) arising during the period, tax expense (benefit) | $ 1,420 | $ (1,886) | $ 3,476 | $ (1,511) |
Reclassification adjustment for net (gains) losses included in net income, tax expense | 1,298 | 61 | 1,338 | 129 |
Unrealized gain (loss) on derivative instruments designated as cash flow hedges, tax expense | $ 113 | $ 167 | $ (141) | $ 30 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Balance at Dec. 31, 2014 | $ 32,078 | $ 201,948 | $ 133,129 | $ 10,166 | $ 377,321 |
Balance (in shares) at Dec. 31, 2014 | 32,078 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock options exercised | $ 124 | 1,127 | 1,251 | ||
Stock options exercised (in shares) | 124 | ||||
Vesting of restricted stock grants | $ 7 | (7) | |||
Vesting of restricted stock grants (in shares) | 7 | ||||
Stock compensation expense, net of tax benefit | 866 | 866 | |||
Dividends on common stock of $0.24 and $0.22 per share for the six months ended June 30, 2016 and 2015, respectively | (7,074) | (7,074) | |||
Other comprehensive income (loss) | (2,679) | (2,679) | |||
Net income | 27,110 | 27,110 | |||
Balance at Jun. 30, 2015 | $ 32,209 | 203,934 | 153,165 | 7,487 | 396,795 |
Balance (in shares) at Jun. 30, 2015 | 32,209 | ||||
Balance at Dec. 31, 2015 | $ 32,373 | 207,429 | 166,303 | 7,042 | 413,147 |
Balance (in shares) at Dec. 31, 2015 | 32,373 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock options exercised | $ 20 | 243 | 263 | ||
Stock options exercised (in shares) | 20 | ||||
Vesting of restricted stock grants | $ 48 | (48) | |||
Vesting of restricted stock grants (in shares) | 48 | ||||
Stock compensation expense, net of tax benefit | 1,575 | 1,575 | |||
Dividends on common stock of $0.24 and $0.22 per share for the six months ended June 30, 2016 and 2015, respectively | (7,790) | (7,790) | |||
Other comprehensive income (loss) | 3,569 | 3,569 | |||
Net income | 27,168 | 27,168 | |||
Balance at Jun. 30, 2016 | $ 32,441 | $ 209,199 | $ 185,681 | $ 10,611 | $ 437,932 |
Balance (in shares) at Jun. 30, 2016 | 32,441 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||
Dividends on common stock (in dollars per share) | $ 0.24 | $ 0.22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||||
Net income | $ 14,101 | $ 13,379 | $ 27,168 | $ 27,110 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||||
Depreciation | 833 | 845 | 1,677 | 1,721 | |
Amortization of premiums, discounts and intangibles | 1,049 | 783 | |||
Provision for loan losses | 430 | 1,356 | 680 | 1,486 | $ 1,388 |
Loans held for sale originated | (1,941,140) | (1,929,998) | |||
Proceeds from the sale of loans held for sale | 1,897,997 | 1,817,042 | |||
Realized and unrealized gains on mortgage banking activities | (29,448) | (27,278) | |||
Purchase of investment securities-trading | (1,715) | (929) | |||
Gain on investment securities-trading | (108) | (176) | |||
Gain on sale of investment securities-available for sale | (3,614) | (180) | |||
Gain on call of investment securities available-for-sale | (112) | (202) | |||
Gain on sales of other real estate owned | (40) | ||||
Stock compensation expense | 1,575 | 866 | |||
Increase in cash surrender value of bank-owned life insurance | (111) | (95) | (235) | (213) | |
Increase in accrued interest receivable and other assets | (16,556) | (20,742) | |||
Increase in accrued interest payable, escrow liabilities and other liabilities | 7,542 | 10,442 | |||
Net cash used in operating activities | (55,280) | (120,268) | |||
Cash flows from investing activities: | |||||
Net purchases of premises and equipment | (787) | (1,068) | |||
Proceeds from maturity and call of investment securities available-for-sale | 32,283 | 27,480 | |||
Proceeds from sale of mortgage-backed securities available-for-sale | 37,811 | ||||
Proceeds from the sale of investment securities available-for-sale | 16,495 | ||||
Proceeds from sale of other investments | 9,775 | 4,212 | |||
Purchase of investment securities available for sale | (27,481) | (35,378) | |||
Purchase of mortgage-backed securities available for sale | (45,655) | ||||
Purchase of other investments | (6,944) | (3,320) | |||
Redemptions of investment securities available-for-sale | 7,049 | 10,221 | |||
Redemptions of investment securities held-to-maturity | 40 | 145 | |||
Proceeds from the sale of other real estate owned | 293 | ||||
Net increase in loans receivable, net of deferred fees and costs | (99,980) | (214,213) | |||
Net cash used in investing activities | (77,101) | (211,921) | |||
Cash flows from financing activities: | |||||
Net increase in deposits | 212,035 | 400,067 | |||
Net decrease in other borrowed funds - short term | (7,269) | (49,239) | |||
Net increase (decrease) in mortgage funding checks | 11,367 | (2,222) | |||
Proceeds from FHLB advances | 200,000 | 75,000 | |||
Repayments of FHLB advances | (280,000) | (85,000) | |||
Stock options exercised | 263 | 1,251 | |||
Dividends on common stock | (7,790) | (7,074) | |||
Net cash provided by financing activities | 128,606 | 332,783 | |||
Net increase (decrease) in cash and cash equivalents | (3,775) | 594 | |||
Cash and cash equivalents at beginning of year | 39,337 | 38,189 | 38,189 | ||
Cash and cash equivalents at end of period | $ 35,562 | $ 38,783 | 35,562 | 38,783 | $ 39,337 |
Cash paid during the year for: | |||||
Interest | 13,543 | 11,483 | |||
Income taxes | 12,814 | 14,596 | |||
Supplemental disclosure of noncash investing and financing activities: | |||||
Change in unrealized gain on available-for-sale investment securities | 5,956 | (4,241) | |||
Change in fair value of derivative instruments designated as cash flow hedges | $ (390) | $ 85 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2016 | |
Organization | |
Organization | Note 1 Organization Cardinal Financial Corporation (the “Company” or “Cardinal”) is incorporated under the laws of the Commonwealth of Virginia as a financial holding company whose activities consist of investment in its wholly-owned subsidiaries. The principal operating subsidiary of the Company is Cardinal Bank (the “Bank”), a state-chartered institution and its subsidiary, George Mason Mortgage, LLC (“George Mason”), a mortgage banking company based in Fairfax, Virginia. In addition to the Bank, the Company has one nonbank subsidiary, Cardinal Wealth Services, Inc. (“CWS”), an investment services subsidiary. On January 16, 2014, the Company announced the completion of its acquisition of United Financial Banking Companies, Inc. (“UFBC”), the holding company of The Business Bank (“TBB”), pursuant to a previously announced definitive merger agreement. The merger of UFBC into Cardinal was effective January 16, 2014. TBB, which was headquartered in Vienna, Virginia, merged into Cardinal Bank effective March 8, 2014. Basis of Presentation In the opinion of management, the accompanying consolidated financial statements have been prepared in accordance with the requirements of Regulation S-X, Article 10. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. However, all adjustments that are, in the opinion of management, necessary for a fair presentation have been included. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. The unaudited interim financial statements should be read in conjunction with the audited financial statements and notes to financial statements that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 2 Stock-Based Compensation At June 30, 2016, the Company had two stock-based employee compensation plans, the 1999 Stock Option Plan (the “Option Plan”) and the 2002 Equity Compensation Plan (the “Equity Plan”). In 1998, the Company adopted the Option Plan pursuant to which the Company could grant stock options for up to 625,000 shares of the Company’s common stock to employees and members of the Company’s and its subsidiaries’ boards of directors. As of November 23, 2008, the Option Plan expired, and therefore, there are no shares of common stock available to grant under this plan. In 2002, the Company adopted the Equity Plan. The Equity Plan was amended in 2011 to increase the number of shares available under the plan and extend the term to 2021. The Equity Plan authorizes the granting of options, which may be incentive stock options or non-qualified stock options, stock appreciation rights, restricted stock awards, phantom stock awards and performance share awards to directors, eligible officers and key employees of the Company. There were 95,956 shares of the Company’s common stock available for future grants and awards in the Equity Plan as of June 30, 2016. Stock options are granted with an exercise price equal to the fair value of the Company’s common stock on the date of grant. Director stock options have ten year terms and vest and become fully exercisable at the grant date. Certain employee stock options have ten year terms and vest and become fully exercisable in 25% increments beginning as of the date of grant. In addition, the Company has granted stock options to employees of the Company that have ten year terms and vest and become fully exercisable in 20% annual increments beginning after their first year of service. Other grants have ten year terms and vest and become fully exercisable in one-third increments beginning as of the date of grant. Restricted stock awards are granted at the fair value of the Company’s common stock on the grant date. Most employee restricted stock awards vest in one-third increments on the anniversary date of the grant. Certain restricted stock awards granted to executive officers vest one-third immediately on the grant date with the remaining unvested options vesting over the next two years. The Company has only made awards of stock options and restricted stock under the Option Plan and the Equity Plan. Total expense related to the Company’s share-based compensation plans for the three months ended June 30, 2016 and 2015 was $537,000 and $306,000, respectively. Total stock compensation expense for the six months ended June 30, 2016 and 2015 was $1.6 million and $866,000, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $180,000 and $103,000 for the three months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016 and 2015, total income tax benefit recognized in the income statements for share-based compensation arrangements was $523,000 and $292,000, respectively. No options were granted for the three months ended June 30, 2016 and 17,000 were granted during the six months ended June 30, 2016. Options granted for the three and six months ended June 30, 2015 were 9,000 and 118,250, respectively. The weighted average per share fair value of stock option grants for the six months ended June 30, 2016 was $5.59. The weighted average per share fair value of stock option grants for the three and six months ended June 30, 2015 was $6.27 and $5.94, respectively. The fair values of the options granted during all periods ended June 30, 2016 and 2015 were estimated as of the grant date using the Black-Scholes option-pricing model based on the following weighted average assumptions: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Estimated option life N/A 6.5 Years 6.5 Years 6.5 Years Risk free interest rate N/A 1.68 - 1.98% 1.53% 1.66 - 1.98% Expected volatility N/A 36.90% 36.50% 36.90% Expected dividend yield N/A 2.46% 2.40% 2.46% Expected volatility is based upon the average annual historical volatility of the Company’s common stock. The estimated option life is derived from specific historical data to estimate the expected term of the option, such as employee option exercise and employee post-vesting departure behavior. The risk free interest rate is based upon the seven-year U.S. Treasury note rate in effect at the time of grant. The expected dividend yield is based upon implied and historical dividend declarations. Stock option activity during the six months ended June 30, 2016 is summarized as follows: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at December 31, 2015 $ Granted Exercised ) Forfeited ) Outstanding at June 30, 2016 $ $ Options exercisable at June 30, 2016 $ $ The intrinsic value of options exercised during the three and six months ended June 30, 2016 was $127,000 and $165,000, respectively. For options exercised during the three and six months ended June 30, 2015, the intrinsic value of options was $607,000 and $1.2 million, respectively. A summary of the status of the Company’s non-vested stock options and changes during the six months ended June 30, 2016 is as follows: Weighted Average Number of Grant Date Shares Fair Value Balance at December 31, 2015 $ Granted Vested ) Forfeited ) Balance at June 30, 2016 $ A summary of the Company’s restricted stock grant activity during the six months ended June 30, 2016 is as follows: Weighted Average Number of Grant Date Shares Fair Value Balance at December 31, 2015 $ Granted Vested ) Forfeited ) Balance at June 30, 2016 $ At June 30, 2016, there was $2.4 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. The cost is expected to be recognized over a weighted average period of 2.3 years. The total fair value of shares from stock options that vested during the three months ended June 30, 2016 and 2015 was $69,000 and $63,000, respectively. For the six months ended June 30, 2016 and 2015, the total fair value of shares that vested was $1.1 million and $963,000, respectively. The total fair value of restricted stock grants that vested during the three and six months ended June 30, 2016 were $245,000 and $959,000, respectively. The total fair value of restricted stock grants that vested during the three and six months ended June 30, 2015 were $0 and $134,000, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information | |
Segment Information | Note 3 Segment Information The Company operates in three business segments: commercial banking, mortgage banking, and wealth management services. The commercial banking segment includes both commercial and consumer lending and provides customers with such products as commercial loans, real estate loans, business financing and consumer loans. In addition, this segment provides customers with several choices of deposit products including demand deposit accounts, savings accounts and certificates of deposit. The mortgage banking segment engages primarily in the origination and acquisition of residential mortgages for sale into the secondary market. The wealth management services segment provides investment and financial advisory services to businesses and individuals, including financial planning, retirement/estate planning, and investment management. Information about the reportable segments and reconciliation of this information to the consolidated financial statements at and for the three and six months ended June 30, 2016 and 2015 is as follows: At and for the Three Months Ended June 30, 2016 (in thousands): Commercial Mortgage Wealth Management Intersegment Banking Banking Services Other Elimination Consolidated Net interest income $ $ $ — $ ) $ — $ Provision for loan losses — — — — Non-interest income — Non-interest expense — Provision for income taxes ) — Net income (loss) $ $ $ $ ) $ — $ Total Assets $ $ $ $ $ ) $ Average Assets ) At and for the Three Months Ended June 30, 2015 (in thousands): Commercial Mortgage Wealth Management Intersegment Banking Banking Services Other Elimination Consolidated Net interest income $ $ $ — $ ) $ — $ Provision for loan losses — — — — Non-interest income — Non-interest expense — Provision for income taxes — Net income $ $ $ $ $ — $ Total Assets $ $ $ $ $ ) $ Average Assets ) At and for the Six Months Ended June 30, 2016 (in thousands): Commercial Mortgage Wealth Management Intersegment Banking Banking Services Other Elimination Consolidated Net interest income $ $ $ — $ ) $ — $ Provision for loan losses — — — — Non-interest income — Non-interest expense — Provision for income taxes ) — Net income (loss) $ $ $ $ ) $ — $ Total Assets $ $ $ $ $ ) $ Average Assets ) At and for the Six Months Ended June 30, 2015 (in thousands): Commercial Mortgage Wealth Management Intersegment Banking Banking Services Other Elimination Consolidated Net interest income $ $ $ — $ ) $ — $ Provision for loan losses — — — — Non-interest income — Non-interest expense — Provision for income taxes — Net income $ $ $ $ $ — $ Total Assets $ $ $ $ $ ) $ Average Assets ) The Company did not have any operating segments other than those reported. Parent company financial information is included in the “Other” category and represents an overhead function rather than an operating segment. The parent company’s most significant assets are its net investments in its subsidiaries. The parent company’s net interest expense is comprised of interest income from short-term investments and interest expense on trust preferred securities. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share | |
Earnings Per Share | Note 4 Earnings Per Share The following is the calculation of basic and diluted earnings per share for the three and six months ended June 30, 2016 and 2015. There were 0 and 1,500 antidilutive outstanding stock options excluded from the calculation of weighted average shares outstanding for the diluted earnings per share calculation for the three and six months ended June 30, 2016, respectively. There were 0 and 35,993 antidilutive outstanding stock options excluded from the calculation of weighted average shares outstanding for the diluted earnings per share calculation for the three and six months ended June 30, 2015. There were 1,311 and 2,651 antidilutive outstanding restricted stock awards excluded from the calculation of weighted average shares outstanding for the diluted earnings per share calculation for the three and six months ended June 30, 2016. There were 75 and 153 antidilutive outstanding restricted stock grants excluded from the calculation of weighted average shares outstanding for the diluted earnings per share calculation for the three and six months ended June 30, 2015. Three Months Ended Six Months Ended (In thousands, June 30, June 30, except per share data) 2016 2015 2016 2015 Net income available to common shareholders $ $ $ $ Weighted average common shares - basic Weighted average common shares - diluted Earnings per common share - basic $ $ $ $ Earnings per common share - diluted $ $ $ $ Weighted average shares for the basic earnings per share calculation is increased by the number of shares required to be issued under the Company’s various deferred compensation plans. These plans provide for a Company match, and such match must be in the common stock of the Company. Employees who participate in the Company’s deferred compensation plans can allocate, at their discretion, their contributions to various investment options, including an option to invest in Company Common Stock. The incremental weighted average shares attributable to the deferred compensation plans included in diluted outstanding shares assumes the participants opt to invest all of their contributions into the Company’s Common Stock investment option. The following shows the composition of basic outstanding shares for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Weighted average common shares outstanding Weighted average shares attributable to the deferred compensation plans Total weighted average shares - basic The following shows the composition of diluted outstanding shares for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Weighted average shares outstanding - basic (from above) Incremental weighted average shares attributable to deferred compensation plans Weighted average shares attributable to vested stock options Incremental shares from restricted stock grants — — Total weighted average shares - diluted |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investment Securities | |
Investment Securities | Note 5 Investment Securities The approximate fair value and amortized cost of investment securities at June 30, 2016 and December 31, 2015 are shown in the table below. June 30, 2016 Gross Gross Gross Amortized Unrealized Unrealized Fair (In thousands) cost Gains Losses value Investment Securities Available-for-Sale U.S. government-sponsored agencies $ $ $ — $ Mortgage-backed securities ) Municipal securities — Total $ $ $ ) $ Investment Securities Held-to-Maturity Mortgage-backed securities $ $ — $ — $ Pooled trust preferred securities — ) Total $ $ — $ ) $ December 31, 2015 Gross Gross Gross Amortized Unrealized Unrealized Fair (In thousands) cost Gains Losses value Investment Securities Available-for-Sale U.S. government-sponsored agencies $ $ $ ) $ Mortgage-backed securities ) Municipal securities ) Total $ $ $ ) $ Investment Securities Held-to-Maturity Mortgage-backed securities $ $ — $ — $ Pooled trust preferred securities — ) Total $ $ — $ ) $ The fair value and amortized cost of investment securities by contractual maturity at June 30, 2016 and December 31, 2015 are shown below. Expected maturities may differ from contractual maturities because many issuers have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Within One Year $ $ $ — $ — After 1 year but within 5 years — — After 5 years but within 10 years — — After 10 years Mortgage-backed securities Total $ $ $ $ December 31, 2015 Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (In thousands) cost Value cost Value Within One Year $ $ $ — $ — After 1 year but within 5 years — — After 5 years but within 10 years — — After 10 years Mortgage-backed securities Total $ $ $ $ The following table shows the Company’s investment securities’ gross unrealized losses and their fair value, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position at June 30, 2016 and December 31, 2015. At June 30, 2016 Investment Securities Available-for- Sale Less than 12 months 12 months or more Total (In thousands) Fair Value Unrealized loss Fair Value Unrealized loss Fair Value Unrealized loss Mortgage-backed securities $ $ ) $ $ ) $ $ ) Total temporarily impaired securities $ $ ) $ $ ) $ $ ) Investment Securities Held-to- Maturity Less than 12 months 12 months or more Total (In thousands) Fair Value Unrealized loss Fair Value Unrealized loss Fair Value Unrealized loss Pooled trust preferred securities $ — $ — $ $ ) $ $ ) Total temporarily impaired securities $ — $ — $ $ ) $ $ ) At December 31, 2015 Investment Securities Available-for- Sale Less than 12 months 12 months or more Total (In thousands) Fair Value Unrealized loss Fair Value Unrealized loss Fair Value Unrealized loss U.S. government sponsored agencies $ $ ) $ — $ — $ $ ) Mortgage-backed securities ) ) ) Municipal securities ) ) ) Total temporarily impaired securities $ $ ) $ $ ) $ $ ) Investment Securities Held-to- Maturity Less than 12 months 12 months or more Total (In thousands) Fair Value Unrealized loss Fair Value Unrealized loss Fair Value Unrealized loss Pooled trust preferred securities $ — $ — $ $ ) $ $ ) Total temporarily impaired securities $ — $ — $ $ ) $ $ ) The Company estimates the fair value of its pooled trust preferred securities portfolio by using third party projected cash flows for each of the issuances in the portfolio, and a discount rate that is commensurate with the risk inherent in the expected cash flows is applied to arrive at the estimated fair value. The Company completes reviews for other-than-temporary impairment at least quarterly. As of June 30, 2016, the majority of the investment securities portfolio consisted of securities rated AAA by a leading rating agency. Investment securities which carry a AAA rating are judged to be of the best quality and carry the smallest degree of investment risk. At June 30, 2016, 99% of the Company’s mortgage-related securities are guaranteed by the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Government National Mortgage Association (GNMA). The Company has $884,000 in non-government non-agency mortgage-related securities in its available-for-sale portfolio. The various protective elements on the non-agency securities may change in the future if market conditions or the financial stability of credit insurers changes, which could impact the ratings of these securities. At June 30, 2016, certain of the Company’s investment grade securities were in an unrealized loss position. Investment securities with unrealized losses are a result of pricing changes due to recent and negative conditions in the current market environment and not as a result of permanent credit impairment. Contractual cash flows for the agency mortgage-backed securities are guaranteed and/or funded by the U.S. government. Other mortgage-backed securities and municipal securities have third party protective elements and there are no negative indications that the contractual cash flows will not be received when due. The Company does not intend to sell nor does the Company believe it will be required to sell any of the temporarily impaired securities prior to the recovery of the amortized cost. No other-than-temporary impairment was recognized for the securities in the Company’s investment portfolio for the three and six months ended June 30, 2016. The Company has investment assets designated as trading to economically hedge against fair value changes in the Company’s nonqualified deferred compensation plan liability. Those investments are designated as trading securities, and as such, the changes in fair value are reflected in earnings. Trading securities at June 30, 2016 and December 31, 2015 are as follows: (in thousands) June 30, 2016 December 31, 2015 Cash equivalents $ $ Mutual funds $ $ |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Loans Receivable and Allowance for Loan Losses | |
Loans Receivable and Allowance for Loan Losses | Note 6 Loans Receivable and Allowance for Loan Losses The loan portfolio at June 30, 2016 and December 31, 2015 consist of the following: June 30, 2016 (In thousands) Originated Acquired Total Commercial and industrial $ $ $ Real estate - commercial Real estate - construction Real estate - residential Home equity lines Consumer Net deferred fees ) — ) Loans receivable, net of deferred fees and costs Allowance for loan losses ) ) ) Loans receivable, net $ $ $ December 31, 2015 (In thousands) Originated Acquired Total Commercial and industrial $ $ $ Real estate - commercial Real estate - construction Real estate - residential Home equity lines Consumer Net deferred fees ) — ) Loans receivable, net of deferred fees and costs Allowance for loan losses ) ) ) Loans receivable, net $ $ $ The loan portfolio is segregated into two components: loans accounted for under the amortized cost method (referred to as “originated” loans) and loans acquired (referred to as “acquired” loans). The loans in the acquired loan portfolio were initially measured at fair value and subsequently accounted for under either Accounting Standards Codification (“ASC”) Topic 310-30 or ASC 310-20. The outstanding principal balance and related carrying amount of acquired loans included in the consolidated statements of condition at June 30, 2016 and December 31, 2015 are as follows: (in thousands) June 30, 2016 Purchased credit impaired loans Outstanding principal balance $ Carrying amount Purchased performing loans Outstanding principal balance Carrying amount Total acquired loans Outstanding principal balance Carrying amount (in thousands) December 31, 2015 Purchased credit impaired loans Outstanding principal balance $ Carrying amount Purchased performing loans Outstanding principal balance Carrying amount Total acquired loans Outstanding principal balance Carrying amount The following table presents changes in the accretable discount, which includes income recognized from contractual interest cash flows. (in thousands) Balance at December 31, 2015 $ ) Charge-offs — Recoveries ) Accretion Balance at June 30, 2016 $ ) (in thousands) Balance at December 31, 2014 $ ) Charge-offs Recoveries ) Accretion ) Balance at December 31, 2015 $ ) The Company’s allowance for loan losses is based first on a segmentation of its loan portfolio by general loan type, or portfolio segments, as presented in the preceding table. For originated loans, certain portfolio segments are further disaggregated and evaluated collectively for impairment based on class segments, which are largely based on the type of collateral underlying each loan. The Company also maintains an allowance for loan losses for acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition, and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining credit discount recorded at the time of acquisition. For the three and six months ended June 30, 2016, the Company recorded an allowance for loan losses for the acquired loan portfolio of $290,000 and $447,000, respectively. For the three and six months ended June 30, 2015, the Company did not record an allowance for loan losses for the acquired loan portfolio. There were no impairments recorded in the purchased credit impaired portfolio as of June 30, 2016 and 2015. An analysis of the allowance for loan losses based on loan type, or segment, and the Company’s loan portfolio, which identifies certain loans that are evaluated for individual or collective impairment, as of June 30, 2016 and 2015 and December 31, 2015, are below: Allowance for Loan Losses For the Three Months Ended June 30, 2016 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, April 1, 2016 $ $ $ $ $ $ $ Charge-offs — — — — — ) ) Recoveries — — — — Provision for loan losses ) ) Ending Balance, June 30, 2016 $ $ $ $ $ $ $ Allowance for Loan Losses At and for the Six Months Ended June 30, 2016 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, January 1 $ $ $ $ $ $ $ Charge-offs ) — — — ) ) ) Recoveries — — Provision for loan losses ) ) ) Ending Balance, June 30, 2016 $ $ $ $ $ $ $ Ending Balance, June 30, 2016 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment Loans Receivable At June 30, 2016 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Loans Receivable: Ending Balance, June 30, 2016 $ $ $ $ $ $ $ Ending Balance, June 30, 2016 Individually evaluated for impairment $ $ $ — $ — $ $ — $ Purchased Credit Impaired Loans — Collectively evaluated for impairment Allowance for Loan Losses For the Three Months Ended June 30, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, April 1, 2015 $ $ $ $ $ $ $ Charge-offs ) ) — — ) — ) Recoveries — — Provision for loan losses ) ) ) ) Ending Balance, June 30, 2015 $ $ $ $ $ $ $ Allowance for Loan Losses At and for the Six Months Ended June 30, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, January 1 $ $ $ $ $ $ $ Charge-offs ) — — — ) ) ) Recoveries — — Provision for loan losses ) ) ) Ending Balance, June 30, 2015 $ $ $ $ $ $ $ Ending Balance, June 30, 2015 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment Loans Receivable At June 30, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Loans Receivable: Ending Balance, June 30, 2015 $ $ $ $ $ $ $ Ending Balance, June 30, 2015 Individually evaluated for impairment $ $ $ $ — $ $ — $ Purchased Credit Impaired Loans Collectively evaluated for impairment Allowance for Loan Losses For the Year Ended December 31, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, January 1 $ $ $ $ $ $ $ Charge-offs ) — — ) ) ) ) Recoveries — — Provision for loan losses ) ) Ending Balance, December 31, 2015 $ $ $ $ $ $ $ Ending Balance, December 31, 2015 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment Loans Receivable At December 31, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Loans Receivable: Ending Balance, December 31, 2015 $ $ $ $ $ $ $ Ending Balance, December 31, 2015 Individually evaluated for impairment $ $ $ — $ $ $ — $ Purchased Credit Impaired Loans — Collectively evaluated for impairment The accounting policy related to the allowance for loan losses is considered a critical accounting policy given the level of estimation, judgment and uncertainty in evaluating the levels of the allowance required for the inherent probable losses in the loan portfolio and the material effect such estimation, judgment and uncertainty can have on the consolidated financial results. The Company’s ongoing credit quality management process relies on a system of activities to assess and evaluate various factors that impact the estimation of the allowance for loan losses. These factors include, but are not limited to; current economic conditions; loan concentrations, collateral adequacy and value; past loss experience for particular types of loans; size, composition and nature of loans; migration of loans through our loan rating methodology; trends in charge-offs and recoveries. This process also contemplates a disciplined approach to managing and monitoring credit exposures to ensure that the structure and pricing of credit remains consistent with the Company’s assessment of risk. The loan officer has frequent contact with the borrower and is a key player in the credit management process and must develop and diligently practice sound credit management skills and habits to ensure effectiveness. Under the direction of the Company’s loan committee and the chief credit officer, the credit risk management function works with the loan officers and other groups within the Company to monitor the loan portfolio, maintain the watch list, and compile the analysis necessary to determine the allowance for loan losses. Loans are added to the watch list when circumstances appear to warrant the inclusion of the relationship. As a general rule, loans are added to the watch list when they are deemed to be problem assets. Problem assets are defined as those that have been risk rated substandard or lower. Successful problem asset management requires early recognition of deteriorating credits and timely corrective or risk management actions. Generally, risk ratings are either approved or amended by the loan committee accordingly. Problem loans are maintained on the watch list until the loan is either paid off or circumstances around the borrower’s situation improve to the point that the risk rating on the loan is adjusted upward. In addition to internal activities, the Company also engages an external consultant on a quarterly basis to review the Company’s loan portfolio. This external loan review function helps to ensure the soundness of the loan portfolio through a third party review of existing exposures in the portfolio, supporting the commercial loan officers in the execution of its credit management responsibilities, and monitoring the adherence to the Company’s credit risk management standards. The following tables report the Company’s nonaccrual and past due loans at June 30, 2016 and December 31, 2015. In addition, the credit quality of the loan portfolio is provided as of June 30, 2016 and December 31, 2015. Nonaccrual and Past Due Loans - Originated Loan Portfolio At June 30, 2016 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (includes nonaccrual) Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Nonaccrual Loans Commercial and industrial $ — $ — $ — $ — $ $ $ — $ — Real estate - commercial Owner occupied — — — — — — Non-owner occupied — — — — — — Real estate - construction Residential — — — — — — Commercial — — — — — — Real estate - residential Single family — — — — — — Multi-family — — — — — — Home equity lines — — Consumer Installment — — — — Credit cards — — — — $ $ — $ $ $ $ $ $ — Nonaccrual and Past Due Loans - Acquired Loan Portfolio At June 30, 2016 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (includes nonaccrual) Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Nonaccrual Loans Commercial and industrial $ — $ — $ — $ — $ $ — $ — Real estate - commercial Owner occupied — — — — — — Non-owner occupied — — — — — — Real estate - construction Residential — — — — — — Commercial — — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — — — — Home equity lines — — — — — — Consumer Installment — — — — — — Credit cards — — — — — — — — $ — $ — $ — $ — $ $ $ — $ — Nonaccrual and Past Due Loans - Originated Loan Portfolio At December 31, 2015 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (includes nonaccrual) Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Nonaccrual Loans Commercial and industrial $ — $ — $ $ $ $ — $ Real estate - commercial Owner occupied — — — — — — Non-owner occupied — — — — — — Real estate - construction Residential — — — — — — Commercial — — — — — — Real estate - residential Single family — — — Multi-family — — — — — — Home equity lines — — — Consumer Installment — — — — — — Credit cards — — — — — — $ $ $ $ $ $ $ — $ Nonaccrual and Past Due Loans - Acquired Loan Portfolio At December 31, 2015 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (includes nonaccrual) Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Nonaccrual Loans Commercial and industrial $ — $ — $ $ $ $ — $ Real estate - commercial Owner occupied — — — — — — Non-owner occupied — — — — — — Real estate - construction Residential — — — — — — Commercial — — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — — — — Home equity lines — — — — — — Consumer Installment — — — — — — Credit cards — — — — — — — — $ — $ — $ $ $ $ $ — $ Additional information on the Company’s impaired loans that were evaluated for specific reserves as of June 30, 2016 and December 31, 2015, including the recorded investment on the statement of condition and the unpaid principal balance, is shown below: Impaired Loans — Originated Loan Portfolio At June 30, 2016 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Interest Income Recognized Average Recorded Investment With no related allowance: Commercial and industrial $ $ $ — $ $ Real estate - commercial Owner occupied — — — — — Non-owner occupied — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — Multi-family — — — — — Home equity lines — Consumer — — — — — With related allowance: Commercial and industrial $ — $ — $ — $ — $ — Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — By segment total: Commercial and industrial $ $ $ — $ $ Real estate - commercial — Real estate - construction — — — — — Real estate - residential — — — — Home equity lines — Consumer — — — — — Total $ $ $ — $ $ Impaired Loans — Acquired Loan Portfolio At June 30, 2016 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Interest Income Recognized Average Recorded Investment With no related allowance: Commercial and industrial $ — $ — $ — $ — $ Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — Real estate - construction Residential — Commercial — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — With related allowance: Commercial and industrial $ — $ — $ — $ — $ — Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — By segment total: Commercial and industrial $ — $ — $ — $ — $ Real estate - commercial — — — — Real estate - construction — Real estate - residential — — — — — Home equity lines — — — — — Consumer — — — — — Total $ $ $ — $ $ Impaired Loans — Originated Loan Portfolio At December 31, 2015 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Interest Income Recognized Average Recorded Investment With no related allowance: Commercial and industrial $ $ $ — $ $ Real estate - commercial Owner occupied — — — — — Non-owner occupied — Real estate - construction Residential — — — — — Commercial — — — — Real estate - residential Single family — Multi-family — — — — — Home equity lines — — Consumer — — — — — With related allowance: Commercial and industrial $ — $ — $ — $ — $ — Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — By segment total: Commercial and industrial $ $ $ — $ $ Real estate - commercial — Real estate - construction — — — — Real estate - residential — Home equity lines — — Consumer — — — — — Total $ $ $ — $ $ Impaired Loans — Acquired Loan Portfolio At December 31, 2015 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Interest Income Recognized Average Recorded Investment With no related allowance: Commercial and industrial $ $ $ — $ — $ Real estate - commercial Owner occupied — — — — — Non-owner occupied — Real estate - construction Residential — — — — — Commercial — Real estate - residential Single family — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — With related allowance: Commercial and industrial $ — $ — $ — $ — $ — Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — By segment total: Commercial and industrial $ $ $ — $ — $ Real estate - commercial — Real estate - construction — Real estate - residential — — — — Home equity lines — — — — — Consumer — — — — — Total $ $ $ — $ $ In order to maximize the collection of certain loans, the Company will attempt to work with borrowers when necessary to extend or modify loan terms to better align with the borrower’s ability to repay. Extensions and modifications to loans are made in accordance with the Company’s policy and conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. The Company considers regulatory guidelines when restructuring a loan to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. A modification is classified as a troubled debt restructuring (“TDR”) if both of the following exist: (1) the borrower is experiencing financial difficulty and (2) the Company has granted a concession to the borrower. The Company determines that a borrower may be experiencing financial difficulty if the borrower is currently in default on any of its debt, or if the Company is concerned that the borrower may not be able to perform in accordance with the current terms of the loan agreement in the foreseeable future. Although each occurrence is unique to the borrower and is evaluated separately, for all portfolio segments, TDRs are typically modified through reductions in interest rates, reductions in payments, changing the payment terms from principal and interest to interest only, and/or extensions in term maturity. During the three and six months ended June 30, 2016 and 2015, there were no loans modified in a TDR. At June 30, 2016 and December 31, 2015, the Company had two TDRs totaling $359,000 and $365,000, respectively (both of which are related to one borrower). Loans reported as TDRs as of June 30, 2016 and December 31, 2015 are not on nonaccrual. While the borrower is having financial difficulty, the borrower has not missed a scheduled payment under the terms of the loan agreement. The Company did not place these TDRs on nonaccrual as the only concession granted to the borrower was an extension of the maturity date to provide the borrower additional time needed to sell the collateral associated with these two loans. At June 30, 2016, these loans are performing as expected post-modification. There were no acquired loans classified as TDRs. For restructured loans in the portfolio, the Company had no loan loss reserves at June 30, 2016 and December 31, 2015, respectively. There were no outstanding commitments to advance additional funds to customer relationships whose loans had been restructured as of June 30, 2016 and December 31, 2015. Loans modified as TDRs within the previous 12 months and for which there was a payment default during the period are calculated by first identifying TDRs that defaulted during the period and then determining whether they were modified within the 12 months prior to the default. For the three and six months ended June 30, 2016 and 2015, there were no loans modified during the previous 12 months that defaulted during the period. One of the most significant factors in assessing the credit quality of the Company’s loan portfolio is the risk rating. The Company uses the following risk ratings to manage the credit quality of its loan portfolio: pass, other loans especially mentioned (OLEM), substandard, doubtful and loss. OLEM are those loans in which the borrower exhibits potential weakness that may, if not corrected or reversed, weaken the Bank’s credit position at some future date. These loans may not show problems as yet due to the borrower’s apparent ability to service the debt, but special circumstances surround the loans of which the Bank’s management should be aware. Substandard risk rated loans are those loans whose full final collectability may not appear to be a matter for serious doubt, but which nevertheless have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and require close supervision by management. Loans that have a risk rating of doubtful have all the weakness inherent in one graded substandard with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and value, highly questionable. A loss loan is one that is considered uncollectible and will be charged-off immediately. All other loans not rated OLEM, substandard, doubtful or loss are considered to have a pass risk rating. Substandard and doubtful risk rated loans are evaluated for impairment. The following table presents a summary of the risk ratings by portfolio segment and class segment at June 30, 2016 and December 31, 2015. Internal Risk Rating Grades - Originated Loan Portfolio At June 30, 2016 (In thousands) Pass OLEM Substandard Doubtful Loss Commercial and industrial $ $ $ $ — $ — Real estate - commercial Owner occupied — — — — Non-owner occupied — — Real estate - construction Residential — — — — Commercial — — — Real estate - residential Single family — — — — Multi-family — — — — Home equity lines — — Consumer Installment — — — Credit cards — — — Total Loans Receivable $ $ $ $ — $ — Internal Risk Rating Grades - Acquired Loan Portfolio At June 30, 2016 (In thousands) Pass OLEM Substandard Doubtful Loss Commercial and industrial $ $ $ — $ — $ — Real estate - commercial Owner occupied — — — — Non-owner occupied — — — Real estate - construction Residential — — — — Commercial — — — — Real estate - residential Single family — — — — Multi-family — — — — — Home equity lines — — — — Consumer Installment — — — — Credit cards — — — — — Total Loans Receivable $ $ $ $ — $ — Internal Risk Rating Grades - Originated Loan Portfolio At December 31, 2015 (In thousands) Pass OLEM Substandard Doubtful Loss Commercial and industrial $ $ $ $ — $ — Real estate - commercial Owner occupied — — — — Non-owner occupied — — — Real estate - construction Residential — — — — Commercial — — Real estate - residential Single family — — Multi-family — — — — Home equity lines — — — Consumer Installment — — — — Credit cards — — — — Total Loans Receivable $ $ $ $ — $ — Internal Risk Rating Grades - Acquired Loan Portfolio At December 31, 2015 (In thousands) Pass OLEM Substandard Doubtful Loss Commercial and industrial $ $ $ $ — $ — Real estate - commercial Owner occupied — — — — Non-owner occupied — — Real estate - construction Residential — — — — Commercial — — — — Real estate - residential Single family — — — — Multi-family — — — — — Home equity lines — — — — Consumer Installment — — — — Credit cards — — — — — Total Loans Receivable $ $ $ $ — $ — |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 7 Derivative Instruments and Hedging Activities The Company enters into rate lock commitments with its mortgage customers. The Company is also a party to forward mortgage loan sales contracts to sell loans servicing released and short sales of mortgage-backed securities. When the interest rate is locked with the borrower, the rate lock commitment, forward sale agreement, and mortgage-backed security position are undesignated derivatives and marked to fair value through earnings. The fair value of the rate lock derivative includes the servicing premium and the interest spread for the difference between retail and wholesale mortgage rates. Realized and unrealized gains on mortgage banking activities represents the gain recognized for the period presented and associated with these elements of fair value. The Company sells mortgage loans on either a best efforts or mandatory delivery basis. For those loans selected to be sold under best efforts delivery, at the closing of the loan, the rate lock commitment derivative expires and the Company records a loan held for sale at lower of cost or fair value and continues to be obligated under the same forward loan sales contract entered into at inception of the rate lock commitment. On the date the mortgage loan closes, the anticipated future sales proceeds from loan held for sale is designated as the hedged item in a cash flow hedge relationship and the forward loan sale commitment or mortgage-backed security position is designated as the hedging instrument. For loans sold on a mandatory delivery basis, the Company enters into a trade of mortgage-backed securities (the “residual hedge”) to mitigate the effect of interest rate risk. Both the rate lock commitment under mandatory delivery and the residual hedge are recorded at fair value through earnings and are not designated as accounting hedges. At the closing of the mandatory delivery loan, the loan commitment derivative expires and the Company records a loan held for sale at fair value. The Company closes out of the trading mortgage-backed securities assigned within the residual hedge and replaces the securities with a forward sales contract once a price has been accepted by an investor and recorded at fair value. At June 30, 2016, accumulated other comprehensive income included an unrealized loss, net of tax, of $729,000 related to forward loan sales contracts designated as the hedging instrument in the cash flow hedge. Loans held for sale are generally sold within thirty days of closing and, therefore, all or substantially all of the amount recorded in accumulated other comprehensive income at June 30, 2016 which is related to the Company’s cash flow hedges will be recognized in earnings during the third quarter of 2016. For the three and six months ended June 30, 2016 and 2015, the Company recognized minimal amounts due to cash flow hedge ineffectiveness. For the three and six months ended June 30, 2016, the Company recognized net gains of $1.0 million and $425,000, respectively, related to the fair values of the rate lock commitments and loans held for sale under mandatory delivery net of losses related to the residual hedge. At June 30, 2016, the Company had $426.6 million in residential mortgage rate lock commitments and associated forward loan sales and mortgage-backed securities in the residual hedge, and $178.2 million in forward loan sales associated with $456.4 million of loans that had closed and were presented as held for sale. |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value of Derivative Instruments and Hedging Activities | |
Fair Value of Derivative Instruments and Hedging Activities | Note 8 Fair Value of Derivative Instruments and Hedging Activities The Company sells mortgage loans on either a best efforts or mandatory delivery basis. For those loans selected to be sold under best efforts delivery, at the closing of the loan, the rate lock commitment derivative expires and the Company records a loan held for sale at lower of cost or fair value and continues to be obligated under the same forward loan sales contract entered into at inception of the rate lock commitment. On the date the mortgage loan closes, the anticipated future sales proceeds from the loan held for sale is designated as the hedged item in a cash flow hedge relationship and the forward loan sale commitment is designated as the hedging instrument. For loans sold on a mandatory basis, the Company enters into a trade of mortgage-backed securities (the “residual hedge”) to mitigate the effect of interest rate risk. Both the rate lock commitment under mandatory delivery and the residual hedge are recorded at fair value through earnings and are not designated as accounting hedges. At the closing of the mandatory delivery loan, the loan commitment derivative expires and the Company records a loan held for sale at fair value. The Company closes out of the trading mortgage-backed securities assigned within the residual hedge and replaces the securities with a forward sales contract once a price has been accepted by an investor and recorded at fair value. The following tables disclose the derivative instruments’ location on the Company’s statement of condition and the fair value of those instruments at June 30, 2016 and December 31, 2015. In addition, the gains and losses related to these derivative instruments is provided for the three and six months ended June 30, 2016 and 2015. Derivative Instruments and Hedging Activities At June 30, 2016 (in thousands) Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Instruments Designated Within a Hedging Relationship Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ Accrued Interest Payable and Other Liabilities $ Total Designated Instruments Derivatives Instruments Not Designated Within a Hedging Relationship Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ Accrued Interest Payable and Other Liabilities $ TBA mortgage-backed securities Accrued Interest Receivable and Other Assets — Accrued Interest Payable and Other Liabilities Interest Rate Lock Commitments Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities Total Undesignated Instruments Total Derivatives $ $ Derivative Instruments and Hedging Activities At December 31, 2015 (in thousands) Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Instruments Designated Within a Hedging Relationship Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ Accrued Interest Payable and Other Liabilities $ Interest Rate Lock Commitments Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities Total Designated Instruments Derivatives Instruments Not Designated Within a Hedging Relationship Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ Accrued Interest Payable and Other Liabilities $ TBA mortgage-backed securities Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities Interest Rate Lock Commitments Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities Total Undesignated Instruments Total Derivatives $ $ Impact of Derivative Instruments on the Statement of Income For the Three Months Ended June 30, 2016 (in thousands) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Forward Loan Sales Commitments $ Other Income $ Other Income $ — Total $ $ $ — Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments Interest Rate Lock Commitment $ Realized and unrealized gains on mortgage banking activities TBA mortgage-backed securities ) Realized and unrealized gains on mortgage banking activities Forward Loan Sales Commitments ) Other Income Total $ Impact of Derivative Instruments on the Statement of Income For the Six Months Ended June 30, 2016 (in thousands) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Forward Loan Sales Commitments $ ) Other Income $ ) Other Income $ — Total $ ) $ ) $ — Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments Interest Rate Lock Commitment $ Realized and unrealized gains on mortgage banking activities TBA mortgage-backed securities ) Realized and unrealized gains on mortgage banking activities Forward Loan Sales Commitments ) Other Income Total $ Impact of Derivative Instruments on the Statement of Income For the Three Months Ended June 30, 2015 (in thousands) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Forward Loan Sales Commitments $ Other Income $ Other Income $ — Total $ $ $ — Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments Rate Lock Commitment $ Realized and unrealized gains on mortgage banking activities Forward Loan Sales Commitments Other Income Rate Lock Commitments ) Other Income Total $ Impact of Derivative Instruments on the Statement of Income For the Six Months Ended June 30, 2015 (in thousands) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Forward Loan Sales Commitments $ Other Income $ Other Income $ — Total $ $ $ — Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments Rate Lock Commitment $ Realized and unrealized gains on mortgage banking activities Forward Loan Sales Commitments ) Other Income Rate Lock Commitments Other Income Total $ The following table reflects the notional amount and fair value of mortgage banking derivatives included in the Company’s statement of condition: Mortgage Banking Derivatives At June 30, 2016 (in thousands) Asset Derivatives Liability Derivatives Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ $ Accrued Interest Payable and Other Liabilities $ $ Interest Rate Lock Commitments Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities TBA mortgage-backed securities Accrued Interest Receivable and Other Assets — — Accrued Interest Payable and Other Liabilities $ $ $ $ |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Other Intangibles | |
Goodwill and Other Intangibles | Note 9 Goodwill and Other Intangibles Information concerning total amortizable other intangible assets at June 30, 2016 is as follows: Commercial Banking Mortgage Banking Total (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Balance at December 31, 2015 $ $ $ $ $ $ 2016 activity: Amortization — — — — Balance at June 30, 2016 $ $ $ $ $ $ The aggregate amortization expense was $152,000 and $188,000 for three months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016 and 2015, the aggregate amortization expense was $314,000 and $385,000, respectively. The estimated amortization expense for the next five years and thereafter is as follows: (In thousands) 2016 (June – December) $ 2017 2018 2019 2020 The carrying amount of goodwill at June 30, 2016 was as follows: (In thousands) Commercial Banking Mortgage Banking Total Balance at December 31, 2015 $ $ $ Activity: None — — — Balance at June 30, 2016 $ $ $ Goodwill is evaluated for impairment on an annual basis or more frequently if events or circumstances warrant. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 10 Commitments and Contingencies The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer so long as there is no violation of any condition established in the contract. Commitments usually have fixed expiration dates up to one year or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. These instruments represent obligations of the Company to extend credit or guarantee borrowings and are not recorded on the consolidated statements of financial condition. The rates and terms of these instruments are competitive with others in the market in which the Company operates. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Company evaluates each customer’s creditworthiness on a case-by-case basis and requires collateral to support financial instruments when deemed necessary. The amount of collateral obtained upon extension of credit is based upon management’s evaluation of the counterparty. Collateral held varies but may include deposits held by the Company, marketable securities, accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of the contractual obligations by a customer to a third party. The majority of these guarantees extend until satisfactory completion of the customer’s contractual obligations. All standby letters of credit outstanding at June 30, 2016 are collateralized. Commitments to extend credit of $1.1 billion primarily have floating rates as of June 30, 2016. At June 30, 2016, standby letters of credit were $30.6 million. In addition, commitments to extend credit of $458.6 million as of June 30, 2016 are related to George Mason’s mortgage loan funding commitments and are of a short term nature. These off-balance sheet financial instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. Credit risk is defined as the possibility of sustaining a loss because the other parties to a financial instrument fail to perform in accordance with the terms of the contract. The Company’s maximum exposure to credit loss under standby letters of credit and commitments to extend credit is represented by the contractual amounts of those instruments. It is uncertain as to the amount, if any, that the Company will be required to fund on these commitments as many such arrangements expire with no amounts drawn. George Mason provides for its estimated exposure to repurchase loans previously sold to investors for which borrowers failed to provide full and accurate information on their loan application or for which appraisals have not been acceptable or where the loan was not underwritten in accordance with the loan program specified by the loan investor, and for other exposure to its investors related to loan sales activities. The Company evaluates the merits of each claim and estimates its reserve based on actual and expected claims received and considers the historical amounts paid to settle such claims. George Mason has a reserve of $0 and $500,000 as of June 30, 2016 and December 31, 2015, respectively. The Company has derivative counter-party risk that may arise from the possible inability of George Mason’s third party investors to meet the terms of their forward sales contracts. George Mason works with third-party investors that are generally well-capitalized, are investment grade and exhibit strong financial performance to mitigate this risk. The Company does not expect any third-party investor to fail to meet its obligation. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | Note 11 Fair Value Measurements The fair value framework under U.S. generally accepted accounting principles defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also 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 the fair value. There are three levels of inputs that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities as of the measurement date. Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Recurring Fair Value Measurements All classes of the Company’s investment securities available-for-sale, the Company’s trading investment securities, which include cash equivalents and mutual funds, and bank-owned life insurance are recorded at fair value, measured using reliable and unbiased valuations by an industry-wide valuation service and therefore fall into the Level 2 category. This service uses evaluated pricing models that vary based on asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The Company records its interest rate lock commitments and forward loan sales commitments at fair value determined as the amount that would be required to settle each of these derivative financial instruments at the balance sheet date. In the normal course of business, George Mason enters into contractual interest rate lock commitments to extend credit to borrowers with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within the time frames established by the mortgage companies. All borrowers are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the interest rate lock by the borrower and the sale date of the loan to the investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, George Mason enters into either a forward sales contract to sell loans to investors when using best efforts or a TBA mortgage-backed security under mandatory delivery. As TBA mortgage-backed securities are actively traded in an open market, TBA mortgage-backed securities fall into a Level 1 category. The forward sales contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments. Both rate lock commitments to borrowers and the forward sales contracts to investors through to the date the loan closes are undesignated derivatives and accordingly, are marked to fair value through earnings. These valuations fall into a Level 2 category. The Company sells certain residential mortgage loans on a mandatory delivery basis. These loans are recorded at fair value which is measured using valuations from investors for loans with similar characteristics which is then adjusted for the Company’s actual sales experience versus the investor’s indicated pricing. These valuations fall into the Level 2 category. There were no significant transfers between Level 1, Level 2 and Level 3 measurements in the fair value hierarchy during the six months ended June 30, 2016. Transfers between levels are recognized at the end of each reporting period. The valuation technique used for fair value measurements using significant other observable inputs (Level 2) is the market approach for each class of assets and liabilities. Assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 are shown below: At June 30, 2016 (In Thousands) Fair Value Measurements Using Quoted Prices in Active markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Balance (Level 1) (Level 2) (Level 3) Investment securities available-for-sale: U.S. government-sponsored agencies $ $ — $ $ — Mortgage-backed securities — — Municipal securities — — Total investment securities available-for-sale — — Investment securities — trading — — Loans held for sale — — Bank-owned life insurance — — Derivative asset - rate lock and forward loan sales commitments — — Derivative asset — interest rate lock commitments — — Derivative liability - rate lock and forward loan sales commitments — — Derivative liability — interest rate lock commitments — — Derivative liability — TBA mortgage-backed securities — — At December 31, 2015 (In Thousands) Fair Value Measurements Using Quoted Prices in Active markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Balance (Level 1) (Level 2) (Level 3) Investment securities available-for-sale: U.S. government-sponsored agencies $ $ — $ $ — Mortgage-backed securities — — Municipal securities — — Total investment securities available-for-sale — — Investment securities — trading — — Bank-owned life insurance — — Derivative asset - rate lock and forward loan sales commitments — — Derivative asset — interest rate lock commitments — — Derivative asset — TBA mortgage-backed securities — — Derivative liability - rate lock and forward loan sales commitments — — Derivative liability — interest rate lock commitments — — Derivative liability — TBA mortgage-backed securities — — Nonrecurring Fair Value Measurements Certain assets and liabilities are measured at fair value on a nonrecurring basis and are not included in the tables above. These assets include the valuation of the Company’s loans receivable — evaluated for impairment and other real estate owned. Neither was measured at fair value at June 30, 2016 or December 31, 2015. In addition, loans held for sale that are delivered on a best efforts basis are recorded at the lower of cost or fair value. Loans held for sale with fair values less than cost are measured at fair value on a nonrecurring basis. Fair value for fixed rate residential mortgages is based upon the pricing of similar coupon mortgage-backed securities and for adjustable rate loans the Company uses investor indicated pricing. Loans held for sale that are measured at fair value on a nonrecurring basis at June 30, 2016 and December 31, 2015 were $1.7 million and $335,000, respectively. The Company’s loans receivable — evaluated for impairment are measured at the present value of its expected future cash flows discounted at the loan’s coupon rate, or at the loan’s observable market price or fair value of the collateral if the loan is collateral dependent. The Company measures the collateral value on loans receivable — evaluated for impairment by obtaining an updated appraisal of the underlying collateral and may discount further the appraised value, if necessary, to an amount equal to the expected cash proceeds in the event the loan is foreclosed upon and the collateral is sold. This third party appraisal data is based on market comparisons and may be subject to further adjustment for certain non-observable criteria. In addition, an estimate of costs to sell the collateral is assumed. Although management uses its best judgment in estimating the fair value of financial instruments, there are inherent limitations in any estimation technique. Because of the wide range of valuation techniques and the numerous estimates and assumptions which must be made, it may be difficult to make reasonable comparisons between the Company’s fair value information and that of other banking institutions. It is important that the many uncertainties be considered when using the estimated fair value disclosures and that, because of these uncertainties, the aggregate fair value amount should not be construed as representative of the underlying value of the Company. Fair Value of Financial Instruments The assumptions used and the estimates disclosed represent management’s best judgment of appropriate valuation methods for estimating the fair value of financial instruments. These estimates are based on pertinent information available to management at the valuation date. In certain cases, fair values are not subject to precise quantification or verification and may change as economic and market factors and management’s evaluation of those factors change. The following summarizes the significant methodologies and assumptions used in estimating the fair values presented in the following table, and not disclosed elsewhere in this footnote. Cash and Cash Equivalents The carrying amount of cash and cash equivalents is used as a reasonable estimate of fair value. Investment Securities Held-to-Maturity and Other Investments Fair values for certain investment securities held-to-maturity are based on quoted market prices or prices quoted for similar financial instruments. For the pooled trust preferred securities that are held-to-maturity, the Company estimates the fair value of these securities through the use of internal calculations and through information provided by external pricing sources. Certain other investments such as Federal Home Loan Bank stock is recorded at cost as this is the estimated fair value based on its redemption provisions. Loans Held for Sale Loans held for sale that are sold under best efforts delivery are carried at the lower of cost or estimated fair value. The estimated fair value is based upon the related purchase price commitments from secondary market investors. Loans Receivable, Net In order to determine the fair market value for loans receivable, the loan portfolio was segmented based on loan type, credit quality and maturities. For certain variable rate loans with no significant credit concerns and frequent repricings, estimated fair values are based on current carrying amounts. The fair values of other loans are estimated using discounted cash flow analyses, at interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The fair value analysis also included other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, as appropriate. This method of estimating fair value does not incorporate the exit-price concept of fair value which is appropriate for this disclosure. Deposits The fair values for demand deposits are equal to the carrying amount since they are payable on demand at the reporting date. The carrying amounts of variable rate, fixed-term money market accounts and certificates of deposit (CDs) approximate their fair value at the reporting date. Fair values for fixed rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on CDs to a schedule of aggregated expected monthly maturities on time deposits. Other Borrowed Funds The fair value of other borrowed funds is estimated using a discounted cash flow calculation that applies interest rates currently available for loans with similar terms. Accrued Interest Receivable The carrying amount of accrued interest receivable approximates its fair value. The following summarizes the carrying amount of these financial assets and liabilities that the Company has not recorded at fair value on a recurring or nonrecurring basis disclosed elsewhere in this note at June 30, 2016 and December 31, 2015: June 30, 2016 Carrying Estimated Fair Value Measurements Using (In thousands) Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities held-to-maturity and other investments — — Loans held for sale — — Loans receivable, net — Accrued interest receivable — — Financial liabilities: Demand deposits $ $ $ $ — $ — Interest checking — — Money market and statement savings — — Certificates of deposit — — Other borrowed funds — — Accrued interest payable — — December 31, 2015 Carrying Estimated Fair Value Measurements Using (In thousands) Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities held-to-maturity and other investments — Loans held for sale — — Loans receivable, net — Accrued interest receivable — — Financial liabilities: Demand deposits $ $ $ $ — $ — Interest checking — — Money market and statement savings — — Certificates of deposit — — Other borrowed funds — — Accrued interest payable — — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation | |
Schedule of weighted average assumptions used in estimation of the fair value of options granted as of the grant date using the Black-Scholes option-pricing model | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Estimated option life N/A 6.5 Years 6.5 Years 6.5 Years Risk free interest rate N/A 1.68 - 1.98% 1.53% 1.66 - 1.98% Expected volatility N/A 36.90% 36.50% 36.90% Expected dividend yield N/A 2.46% 2.40% 2.46% |
Summary of stock option activity | Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at December 31, 2015 $ Granted Exercised ) Forfeited ) Outstanding at June 30, 2016 $ $ Options exercisable at June 30, 2016 $ $ |
Summary of non-vested stock options | Weighted Average Number of Grant Date Shares Fair Value Balance at December 31, 2015 $ Granted Vested ) Forfeited ) Balance at June 30, 2016 $ |
Summary of restricted stock grant activity | Weighted Average Number of Grant Date Shares Fair Value Balance at December 31, 2015 $ Granted Vested ) Forfeited ) Balance at June 30, 2016 $ |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information | |
Schedule of information about the reportable segments and reconciliation of this information to the consolidated financial statements | At and for the Three Months Ended June 30, 2016 (in thousands): Commercial Mortgage Wealth Management Intersegment Banking Banking Services Other Elimination Consolidated Net interest income $ $ $ — $ ) $ — $ Provision for loan losses — — — — Non-interest income — Non-interest expense — Provision for income taxes ) — Net income (loss) $ $ $ $ ) $ — $ Total Assets $ $ $ $ $ ) $ Average Assets ) At and for the Three Months Ended June 30, 2015 (in thousands): Commercial Mortgage Wealth Management Intersegment Banking Banking Services Other Elimination Consolidated Net interest income $ $ $ — $ ) $ — $ Provision for loan losses — — — — Non-interest income — Non-interest expense — Provision for income taxes — Net income $ $ $ $ $ — $ Total Assets $ $ $ $ $ ) $ Average Assets ) At and for the Six Months Ended June 30, 2016 (in thousands): Commercial Mortgage Wealth Management Intersegment Banking Banking Services Other Elimination Consolidated Net interest income $ $ $ — $ ) $ — $ Provision for loan losses — — — — Non-interest income — Non-interest expense — Provision for income taxes ) — Net income (loss) $ $ $ $ ) $ — $ Total Assets $ $ $ $ $ ) $ Average Assets ) At and for the Six Months Ended June 30, 2015 (in thousands): Commercial Mortgage Wealth Management Intersegment Banking Banking Services Other Elimination Consolidated Net interest income $ $ $ — $ ) $ — $ Provision for loan losses — — — — Non-interest income — Non-interest expense — Provision for income taxes — Net income $ $ $ $ $ — $ Total Assets $ $ $ $ $ ) $ Average Assets ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share | |
Schedule of calculation of basic and diluted earnings per share | Three Months Ended Six Months Ended (In thousands, June 30, June 30, except per share data) 2016 2015 2016 2015 Net income available to common shareholders $ $ $ $ Weighted average common shares - basic Weighted average common shares - diluted Earnings per common share - basic $ $ $ $ Earnings per common share - diluted $ $ $ $ |
Schedule of composition of basic outstanding shares | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Weighted average common shares outstanding Weighted average shares attributable to the deferred compensation plans Total weighted average shares - basic |
Schedule of composition of diluted outstanding shares | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Weighted average shares outstanding - basic (from above) Incremental weighted average shares attributable to deferred compensation plans Weighted average shares attributable to vested stock options Incremental shares from restricted stock grants — — Total weighted average shares - diluted |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investment Securities | |
Schedule of approximate fair value and amortized cost of investment securities | June 30, 2016 Gross Gross Gross Amortized Unrealized Unrealized Fair (In thousands) cost Gains Losses value Investment Securities Available-for-Sale U.S. government-sponsored agencies $ $ $ — $ Mortgage-backed securities ) Municipal securities — Total $ $ $ ) $ Investment Securities Held-to-Maturity Mortgage-backed securities $ $ — $ — $ Pooled trust preferred securities — ) Total $ $ — $ ) $ December 31, 2015 Gross Gross Gross Amortized Unrealized Unrealized Fair (In thousands) cost Gains Losses value Investment Securities Available-for-Sale U.S. government-sponsored agencies $ $ $ ) $ Mortgage-backed securities ) Municipal securities ) Total $ $ $ ) $ Investment Securities Held-to-Maturity Mortgage-backed securities $ $ — $ — $ Pooled trust preferred securities — ) Total $ $ — $ ) $ |
Schedule of fair value and amortized cost of investment securities by contractual maturity | June 30, 2016 Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Within One Year $ $ $ — $ — After 1 year but within 5 years — — After 5 years but within 10 years — — After 10 years Mortgage-backed securities Total $ $ $ $ December 31, 2015 Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (In thousands) cost Value cost Value Within One Year $ $ $ — $ — After 1 year but within 5 years — — After 5 years but within 10 years — — After 10 years Mortgage-backed securities Total $ $ $ $ |
Schedule of the Company's investment securities' gross unrealized losses and their fair value, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position | At June 30, 2016 Investment Securities Available-for- Sale Less than 12 months 12 months or more Total (In thousands) Fair Value Unrealized loss Fair Value Unrealized loss Fair Value Unrealized loss Mortgage-backed securities $ $ ) $ $ ) $ $ ) Total temporarily impaired securities $ $ ) $ $ ) $ $ ) Investment Securities Held-to- Maturity Less than 12 months 12 months or more Total (In thousands) Fair Value Unrealized loss Fair Value Unrealized loss Fair Value Unrealized loss Pooled trust preferred securities $ — $ — $ $ ) $ $ ) Total temporarily impaired securities $ — $ — $ $ ) $ $ ) At December 31, 2015 Investment Securities Available-for- Sale Less than 12 months 12 months or more Total (In thousands) Fair Value Unrealized loss Fair Value Unrealized loss Fair Value Unrealized loss U.S. government sponsored agencies $ $ ) $ — $ — $ $ ) Mortgage-backed securities ) ) ) Municipal securities ) ) ) Total temporarily impaired securities $ $ ) $ $ ) $ $ ) Investment Securities Held-to- Maturity Less than 12 months 12 months or more Total (In thousands) Fair Value Unrealized loss Fair Value Unrealized loss Fair Value Unrealized loss Pooled trust preferred securities $ — $ — $ $ ) $ $ ) Total temporarily impaired securities $ — $ — $ $ ) $ $ ) |
Schedule of trading securities reflected in earnings | (in thousands) June 30, 2016 December 31, 2015 Cash equivalents $ $ Mutual funds $ $ |
Loans Receivable and Allowanc25
Loans Receivable and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans Receivable and Allowance for Loan Losses | |
Schedule of loan portfolio | June 30, 2016 (In thousands) Originated Acquired Total Commercial and industrial $ $ $ Real estate - commercial Real estate - construction Real estate - residential Home equity lines Consumer Net deferred fees ) — ) Loans receivable, net of deferred fees and costs Allowance for loan losses ) ) ) Loans receivable, net $ $ $ December 31, 2015 (In thousands) Originated Acquired Total Commercial and industrial $ $ $ Real estate - commercial Real estate - construction Real estate - residential Home equity lines Consumer Net deferred fees ) — ) Loans receivable, net of deferred fees and costs Allowance for loan losses ) ) ) Loans receivable, net $ $ $ |
Schedule of outstanding principal balance and related carrying amount of acquired loans | (in thousands) June 30, 2016 Purchased credit impaired loans Outstanding principal balance $ Carrying amount Purchased performing loans Outstanding principal balance Carrying amount Total acquired loans Outstanding principal balance Carrying amount (in thousands) December 31, 2015 Purchased credit impaired loans Outstanding principal balance $ Carrying amount Purchased performing loans Outstanding principal balance Carrying amount Total acquired loans Outstanding principal balance Carrying amount |
Schedule of changes in the accretable discount which includes income recognized from contractual interest cash flows | (in thousands) Balance at December 31, 2015 $ ) Charge-offs — Recoveries ) Accretion Balance at June 30, 2016 $ ) (in thousands) Balance at December 31, 2014 $ ) Charge-offs Recoveries ) Accretion ) Balance at December 31, 2015 $ ) |
Schedule of analysis of the allowance for loan losses based on loan type, or segment, and the Company's loan portfolio, which identifies certain loans that are evaluated for individual or collective impairment | Allowance for Loan Losses For the Three Months Ended June 30, 2016 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, April 1, 2016 $ $ $ $ $ $ $ Charge-offs — — — — — ) ) Recoveries — — — — Provision for loan losses ) ) Ending Balance, June 30, 2016 $ $ $ $ $ $ $ Allowance for Loan Losses At and for the Six Months Ended June 30, 2016 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, January 1 $ $ $ $ $ $ $ Charge-offs ) — — — ) ) ) Recoveries — — Provision for loan losses ) ) ) Ending Balance, June 30, 2016 $ $ $ $ $ $ $ Ending Balance, June 30, 2016 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment Loans Receivable At June 30, 2016 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Loans Receivable: Ending Balance, June 30, 2016 $ $ $ $ $ $ $ Ending Balance, June 30, 2016 Individually evaluated for impairment $ $ $ — $ — $ $ — $ Purchased Credit Impaired Loans — Collectively evaluated for impairment Allowance for Loan Losses For the Three Months Ended June 30, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, April 1, 2015 $ $ $ $ $ $ $ Charge-offs ) ) — — ) — ) Recoveries — — Provision for loan losses ) ) ) ) Ending Balance, June 30, 2015 $ $ $ $ $ $ $ Allowance for Loan Losses At and for the Six Months Ended June 30, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, January 1 $ $ $ $ $ $ $ Charge-offs ) — — — ) ) ) Recoveries — — Provision for loan losses ) ) ) Ending Balance, June 30, 2015 $ $ $ $ $ $ $ Ending Balance, June 30, 2015 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment Loans Receivable At June 30, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Loans Receivable: Ending Balance, June 30, 2015 $ $ $ $ $ $ $ Ending Balance, June 30, 2015 Individually evaluated for impairment $ $ $ $ — $ $ — $ Purchased Credit Impaired Loans Collectively evaluated for impairment Allowance for Loan Losses For the Year Ended December 31, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Allowance for loan losses: Beginning Balance, January 1 $ $ $ $ $ $ $ Charge-offs ) — — ) ) ) ) Recoveries — — Provision for loan losses ) ) Ending Balance, December 31, 2015 $ $ $ $ $ $ $ Ending Balance, December 31, 2015 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment Loans Receivable At December 31, 2015 (In thousands) Commercial and Industrial Real Estate - Commercial Real Estate - Construction Real Estate - Residential Home Equity Lines Consumer Total Loans Receivable: Ending Balance, December 31, 2015 $ $ $ $ $ $ $ Ending Balance, December 31, 2015 Individually evaluated for impairment $ $ $ — $ $ $ — $ Purchased Credit Impaired Loans — Collectively evaluated for impairment |
Schedule of Company's nonaccrual and past due loans | Nonaccrual and Past Due Loans - Originated Loan Portfolio At June 30, 2016 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (includes nonaccrual) Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Nonaccrual Loans Commercial and industrial $ — $ — $ — $ — $ $ $ — $ — Real estate - commercial Owner occupied — — — — — — Non-owner occupied — — — — — — Real estate - construction Residential — — — — — — Commercial — — — — — — Real estate - residential Single family — — — — — — Multi-family — — — — — — Home equity lines — — Consumer Installment — — — — Credit cards — — — — $ $ — $ $ $ $ $ $ — Nonaccrual and Past Due Loans - Acquired Loan Portfolio At June 30, 2016 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (includes nonaccrual) Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Nonaccrual Loans Commercial and industrial $ — $ — $ — $ — $ $ — $ — Real estate - commercial Owner occupied — — — — — — Non-owner occupied — — — — — — Real estate - construction Residential — — — — — — Commercial — — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — — — — Home equity lines — — — — — — Consumer Installment — — — — — — Credit cards — — — — — — — — $ — $ — $ — $ — $ $ $ — $ — Nonaccrual and Past Due Loans - Originated Loan Portfolio At December 31, 2015 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (includes nonaccrual) Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Nonaccrual Loans Commercial and industrial $ — $ — $ $ $ $ — $ Real estate - commercial Owner occupied — — — — — — Non-owner occupied — — — — — — Real estate - construction Residential — — — — — — Commercial — — — — — — Real estate - residential Single family — — — Multi-family — — — — — — Home equity lines — — — Consumer Installment — — — — — — Credit cards — — — — — — $ $ $ $ $ $ $ — $ Nonaccrual and Past Due Loans - Acquired Loan Portfolio At December 31, 2015 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (includes nonaccrual) Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Nonaccrual Loans Commercial and industrial $ — $ — $ $ $ $ — $ Real estate - commercial Owner occupied — — — — — — Non-owner occupied — — — — — — Real estate - construction Residential — — — — — — Commercial — — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — — — — Home equity lines — — — — — — Consumer Installment — — — — — — Credit cards — — — — — — — — $ — $ — $ $ $ $ $ — $ |
Schedule of additional information on the Company's impaired loans that were evaluated for specific reserves, including the recorded investment on the statement of condition and the unpaid principal balance | Impaired Loans — Originated Loan Portfolio At June 30, 2016 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Interest Income Recognized Average Recorded Investment With no related allowance: Commercial and industrial $ $ $ — $ $ Real estate - commercial Owner occupied — — — — — Non-owner occupied — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — Multi-family — — — — — Home equity lines — Consumer — — — — — With related allowance: Commercial and industrial $ — $ — $ — $ — $ — Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — By segment total: Commercial and industrial $ $ $ — $ $ Real estate - commercial — Real estate - construction — — — — — Real estate - residential — — — — Home equity lines — Consumer — — — — — Total $ $ $ — $ $ Impaired Loans — Acquired Loan Portfolio At June 30, 2016 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Interest Income Recognized Average Recorded Investment With no related allowance: Commercial and industrial $ — $ — $ — $ — $ Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — Real estate - construction Residential — Commercial — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — With related allowance: Commercial and industrial $ — $ — $ — $ — $ — Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — By segment total: Commercial and industrial $ — $ — $ — $ — $ Real estate - commercial — — — — Real estate - construction — Real estate - residential — — — — — Home equity lines — — — — — Consumer — — — — — Total $ $ $ — $ $ Impaired Loans — Originated Loan Portfolio At December 31, 2015 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Interest Income Recognized Average Recorded Investment With no related allowance: Commercial and industrial $ $ $ — $ $ Real estate - commercial Owner occupied — — — — — Non-owner occupied — Real estate - construction Residential — — — — — Commercial — — — — Real estate - residential Single family — Multi-family — — — — — Home equity lines — — Consumer — — — — — With related allowance: Commercial and industrial $ — $ — $ — $ — $ — Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — By segment total: Commercial and industrial $ $ $ — $ $ Real estate - commercial — Real estate - construction — — — — Real estate - residential — Home equity lines — — Consumer — — — — — Total $ $ $ — $ $ Impaired Loans — Acquired Loan Portfolio At December 31, 2015 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Interest Income Recognized Average Recorded Investment With no related allowance: Commercial and industrial $ $ $ — $ — $ Real estate - commercial Owner occupied — — — — — Non-owner occupied — Real estate - construction Residential — — — — — Commercial — Real estate - residential Single family — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — With related allowance: Commercial and industrial $ — $ — $ — $ — $ — Real estate - commercial Owner occupied — — — — — Non-owner occupied — — — — — Real estate - construction Residential — — — — — Commercial — — — — — Real estate - residential Single family — — — — — Multi-family — — — — — Home equity lines — — — — — Consumer — — — — — By segment total: Commercial and industrial $ $ $ — $ — $ Real estate - commercial — Real estate - construction — Real estate - residential — — — — Home equity lines — — — — — Consumer — — — — — Total $ $ $ — $ $ |
Summary of the risk ratings by portfolio segment and class segment | Internal Risk Rating Grades - Originated Loan Portfolio At June 30, 2016 (In thousands) Pass OLEM Substandard Doubtful Loss Commercial and industrial $ $ $ $ — $ — Real estate - commercial Owner occupied — — — — Non-owner occupied — — Real estate - construction Residential — — — — Commercial — — — Real estate - residential Single family — — — — Multi-family — — — — Home equity lines — — Consumer Installment — — — Credit cards — — — Total Loans Receivable $ $ $ $ — $ — Internal Risk Rating Grades - Acquired Loan Portfolio At June 30, 2016 (In thousands) Pass OLEM Substandard Doubtful Loss Commercial and industrial $ $ $ — $ — $ — Real estate - commercial Owner occupied — — — — Non-owner occupied — — — Real estate - construction Residential — — — — Commercial — — — — Real estate - residential Single family — — — — Multi-family — — — — — Home equity lines — — — — Consumer Installment — — — — Credit cards — — — — — Total Loans Receivable $ $ $ $ — $ — Internal Risk Rating Grades - Originated Loan Portfolio At December 31, 2015 (In thousands) Pass OLEM Substandard Doubtful Loss Commercial and industrial $ $ $ $ — $ — Real estate - commercial Owner occupied — — — — Non-owner occupied — — — Real estate - construction Residential — — — — Commercial — — Real estate - residential Single family — — Multi-family — — — — Home equity lines — — — Consumer Installment — — — — Credit cards — — — — Total Loans Receivable $ $ $ $ — $ — Internal Risk Rating Grades - Acquired Loan Portfolio At December 31, 2015 (In thousands) Pass OLEM Substandard Doubtful Loss Commercial and industrial $ $ $ $ — $ — Real estate - commercial Owner occupied — — — — Non-owner occupied — — Real estate - construction Residential — — — — Commercial — — — — Real estate - residential Single family — — — — Multi-family — — — — — Home equity lines — — — — Consumer Installment — — — — Credit cards — — — — — Total Loans Receivable $ $ $ $ — $ — |
Fair Value of Derivative Inst26
Fair Value of Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value of Derivative Instruments and Hedging Activities | |
Schedule of the derivative instruments' location on the Company's statement of condition and the fair value of those instruments | Derivative Instruments and Hedging Activities At June 30, 2016 (in thousands) Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Instruments Designated Within a Hedging Relationship Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ Accrued Interest Payable and Other Liabilities $ Total Designated Instruments Derivatives Instruments Not Designated Within a Hedging Relationship Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ Accrued Interest Payable and Other Liabilities $ TBA mortgage-backed securities Accrued Interest Receivable and Other Assets — Accrued Interest Payable and Other Liabilities Interest Rate Lock Commitments Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities Total Undesignated Instruments Total Derivatives $ $ Derivative Instruments and Hedging Activities At December 31, 2015 (in thousands) Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Instruments Designated Within a Hedging Relationship Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ Accrued Interest Payable and Other Liabilities $ Interest Rate Lock Commitments Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities Total Designated Instruments Derivatives Instruments Not Designated Within a Hedging Relationship Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ Accrued Interest Payable and Other Liabilities $ TBA mortgage-backed securities Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities Interest Rate Lock Commitments Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities Total Undesignated Instruments Total Derivatives $ $ |
Schedule of the gains and losses related to derivative instruments | Impact of Derivative Instruments on the Statement of Income For the Three Months Ended June 30, 2016 (in thousands) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Forward Loan Sales Commitments $ Other Income $ Other Income $ — Total $ $ $ — Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments Interest Rate Lock Commitment $ Realized and unrealized gains on mortgage banking activities TBA mortgage-backed securities ) Realized and unrealized gains on mortgage banking activities Forward Loan Sales Commitments ) Other Income Total $ Impact of Derivative Instruments on the Statement of Income For the Six Months Ended June 30, 2016 (in thousands) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Forward Loan Sales Commitments $ ) Other Income $ ) Other Income $ — Total $ ) $ ) $ — Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments Interest Rate Lock Commitment $ Realized and unrealized gains on mortgage banking activities TBA mortgage-backed securities ) Realized and unrealized gains on mortgage banking activities Forward Loan Sales Commitments ) Other Income Total $ Impact of Derivative Instruments on the Statement of Income For the Three Months Ended June 30, 2015 (in thousands) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Forward Loan Sales Commitments $ Other Income $ Other Income $ — Total $ $ $ — Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments Rate Lock Commitment $ Realized and unrealized gains on mortgage banking activities Forward Loan Sales Commitments Other Income Rate Lock Commitments ) Other Income Total $ Impact of Derivative Instruments on the Statement of Income For the Six Months Ended June 30, 2015 (in thousands) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Forward Loan Sales Commitments $ Other Income $ Other Income $ — Total $ $ $ — Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain (Loss) Recognized in Income on Derivative Derivatives Not Designated as Hedging Instruments Rate Lock Commitment $ Realized and unrealized gains on mortgage banking activities Forward Loan Sales Commitments ) Other Income Rate Lock Commitments Other Income Total $ |
Schedule of net gains (losses) relating to free-standing derivative instruments | Mortgage Banking Derivatives At June 30, 2016 (in thousands) Asset Derivatives Liability Derivatives Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value Forward Loan Sales Commitments Accrued Interest Receivable and Other Assets $ $ Accrued Interest Payable and Other Liabilities $ $ Interest Rate Lock Commitments Accrued Interest Receivable and Other Assets Accrued Interest Payable and Other Liabilities TBA mortgage-backed securities Accrued Interest Receivable and Other Assets — — Accrued Interest Payable and Other Liabilities $ $ $ $ |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Other Intangibles | |
Schedule of information concerning total amortizable other intangible assets | Commercial Banking Mortgage Banking Total (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Balance at December 31, 2015 $ $ $ $ $ $ 2016 activity: Amortization — — — — Balance at June 30, 2016 $ $ $ $ $ $ |
Schedule of estimated amortization expense for the next five years and thereafter | (In thousands) 2016 (June – December) $ 2017 2018 2019 2020 |
Schedule of the carrying amount of goodwill | (In thousands) Commercial Banking Mortgage Banking Total Balance at December 31, 2015 $ $ $ Activity: None — — — Balance at June 30, 2016 $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value on a recurring basis | At June 30, 2016 (In Thousands) Fair Value Measurements Using Quoted Prices in Active markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Balance (Level 1) (Level 2) (Level 3) Investment securities available-for-sale: U.S. government-sponsored agencies $ $ — $ $ — Mortgage-backed securities — — Municipal securities — — Total investment securities available-for-sale — — Investment securities — trading — — Loans held for sale — — Bank-owned life insurance — — Derivative asset - rate lock and forward loan sales commitments — — Derivative asset — interest rate lock commitments — — Derivative liability - rate lock and forward loan sales commitments — — Derivative liability — interest rate lock commitments — — Derivative liability — TBA mortgage-backed securities — — At December 31, 2015 (In Thousands) Fair Value Measurements Using Quoted Prices in Active markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Balance (Level 1) (Level 2) (Level 3) Investment securities available-for-sale: U.S. government-sponsored agencies $ $ — $ $ — Mortgage-backed securities — — Municipal securities — — Total investment securities available-for-sale — — Investment securities — trading — — Bank-owned life insurance — — Derivative asset - rate lock and forward loan sales commitments — — Derivative asset — interest rate lock commitments — — Derivative asset — TBA mortgage-backed securities — — Derivative liability - rate lock and forward loan sales commitments — — Derivative liability — interest rate lock commitments — — Derivative liability — TBA mortgage-backed securities — — |
Summary of the carrying amount of financial assets and liabilities that the Company has not recorded at fair value on a recurring or non recurring basis | June 30, 2016 Carrying Estimated Fair Value Measurements Using (In thousands) Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities held-to-maturity and other investments — — Loans held for sale — — Loans receivable, net — Accrued interest receivable — — Financial liabilities: Demand deposits $ $ $ $ — $ — Interest checking — — Money market and statement savings — — Certificates of deposit — — Other borrowed funds — — Accrued interest payable — — December 31, 2015 Carrying Estimated Fair Value Measurements Using (In thousands) Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities held-to-maturity and other investments — Loans held for sale — — Loans receivable, net — Accrued interest receivable — — Financial liabilities: Demand deposits $ $ $ $ — $ — Interest checking — — Money market and statement savings — — Certificates of deposit — — Other borrowed funds — — Accrued interest payable — — |
Organization (Details)
Organization (Details) | 6 Months Ended |
Jun. 30, 2016item | |
Organization | |
Number of nonbank subsidiaries | 1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)item$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2016USD ($)item$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Nov. 23, 2008shares | Dec. 31, 1998shares | |
Stock-based Compensation | ||||||
Number of stock-based employee compensation plans | item | 2 | 2 | ||||
Total compensation cost charged against income | $ | $ 537,000 | $ 306,000 | $ 1,600,000 | $ 866,000 | ||
Total income tax benefit recognized in the income statement for share-based compensation arrangements | $ | 180,000 | $ 103,000 | $ 523,000 | $ 292,000 | ||
Weighted average assumptions used in estimation of fair values of options | ||||||
Term of the U.S. Treasury note on which the risk free interest rate is based | 7 years | |||||
Additional stock-based compensation information | ||||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans | $ | $ 2,400,000 | $ 2,400,000 | ||||
Expected weighted-average period for recognition of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans | 2 years 3 months 18 days | |||||
Stock options | ||||||
Stock-based Compensation | ||||||
Granted (in shares) | 0 | 9,000 | 17,000 | 118,250 | ||
Weighted average per share fair value of stock option grants (in dollars per share) | $ / shares | $ 6.27 | $ 5.59 | $ 5.94 | |||
Weighted average assumptions used in estimation of fair values of options | ||||||
Estimated option life | 6 years 6 months | 6 years 6 months | 6 years 6 months | |||
Risk free interest rate (as a percent) | 1.53% | |||||
Risk free interest rate, low end of range (as a percent) | 1.68% | 1.66% | ||||
Risk free interest rate, high end of range (as a percent) | 1.98% | 1.98% | ||||
Expected volatility (as a percent) | 36.90% | 36.50% | 36.90% | |||
Expected dividend yield (as a percent) | 2.46% | 2.40% | 2.46% | |||
Stock option, number of shares | ||||||
Outstanding at the beginning of the period (in shares) | 1,023,550 | |||||
Granted (in shares) | 0 | 9,000 | 17,000 | 118,250 | ||
Exercised (in shares) | (19,912) | |||||
Forfeited (in shares) | (4,734) | |||||
Outstanding at the end of the period (in shares) | 1,015,904 | 1,015,904 | ||||
Options exercisable at the end of the period (in shares) | 885,792 | 885,792 | ||||
Stock option, weighted average exercise price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 14.97 | |||||
Granted (in dollars per share) | $ / shares | 19.18 | |||||
Exercised (in dollars per share) | $ / shares | 13.23 | |||||
Forfeited (in dollars per share) | $ / shares | 16.54 | |||||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 15.06 | 15.06 | ||||
Options exercisable at the end of the period (in dollars per share) | $ / shares | $ 14.65 | $ 14.65 | ||||
Stock option, weighted average remaining contractual term | ||||||
Outstanding at the end of the period | 6 years 5 months 9 days | |||||
Options exercisable at the end of the period | 6 years 2 months 12 days | |||||
Stock option, aggregate intrinsic value | ||||||
Outstanding at the end of the period (in dollars) | $ | $ 6,985,285 | $ 6,985,285 | ||||
Options exercisable at the end of the period (in dollars) | $ | 6,457,042 | 6,457,042 | ||||
Intrinsic value of options exercised (in dollars) | $ | $ 127,000 | $ 607,000 | $ 165,000 | $ 1,200,000 | ||
Non-vested stock options, number of shares | ||||||
Balance at the beginning of the period (in shares) | 300,125 | |||||
Granted (in shares) | 0 | 9,000 | 17,000 | 118,250 | ||
Vested (in shares) | (183,579) | |||||
Forfeited (in shares) | (3,434) | |||||
Balance at the end of the period (in shares) | 130,112 | 130,112 | ||||
Non-vested stock options, weighted average grant date fair value | ||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 5.67 | |||||
Granted (in dollars per share) | $ / shares | $ 6.27 | 5.59 | $ 5.94 | |||
Vested (in dollars per share) | $ / shares | 5.73 | |||||
Forfeited (in dollars per share) | $ / shares | 5.90 | |||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 5.57 | $ 5.57 | ||||
Additional stock-based compensation information | ||||||
The total fair value of shares that vested | $ | $ 69,000 | $ 63,000 | $ 1,100,000 | $ 963,000 | ||
Stock options | Director | ||||||
Stock-based Compensation | ||||||
Term | 10 years | |||||
Stock options | Employee | ||||||
Stock-based Compensation | ||||||
Term | 10 years | |||||
Percentage vesting of options on the date of grant | 25.00% | |||||
Stock options | Employee | Grants exercisable after first year of service | ||||||
Stock-based Compensation | ||||||
Term | 10 years | |||||
Increments in which the stock options vest and become fully exercisable, beginning after the first year of their service (as a percent) | 20.00% | |||||
Stock options | Employee | Grants fully exercisable at the date of grant | ||||||
Stock-based Compensation | ||||||
Term | 10 years | |||||
Percentage vesting of options on the date of grant | 0.33% | |||||
Restricted stock | ||||||
Restricted stock, number of shares | ||||||
Balance at the beginning of the period (in shares) | 65,932 | |||||
Granted (in shares) | 104,120 | |||||
Vested (in shares) | (47,747) | |||||
Forfeited (in shares) | (13,817) | |||||
Balance at the end of the period (in shares) | 108,488 | 108,488 | ||||
Restricted stock, weighted average grant date fair value | ||||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 21.76 | |||||
Granted (in dollars per share) | $ / shares | 19.52 | |||||
Vested (in dollars per share) | $ / shares | 20.01 | |||||
Forfeited (in dollars per share) | $ / shares | 20.37 | |||||
Balance at the end of the period (in dollars per share) | $ / shares | $ 20.56 | $ 20.56 | ||||
Additional stock-based compensation information | ||||||
The total fair value of restricted stock that vested | $ | $ 245,000 | $ 0 | $ 959,000 | $ 134,000 | ||
Restricted stock | Employee | ||||||
Stock-based Compensation | ||||||
Percentage vesting of options on the date of grant | 0.33% | |||||
Restricted stock | Executive officer | ||||||
Stock-based Compensation | ||||||
Percentage vesting of options on the date of grant | 0.33% | |||||
Vesting period of remaining unvested awards | 2 years | |||||
Option Plan | ||||||
Stock-based Compensation | ||||||
Number of shares of common stock reserved for issuance | 625,000 | |||||
Number of shares of the company's common stock available for future grants and awards | 0 | |||||
Equity Plan | ||||||
Stock-based Compensation | ||||||
Number of shares of the company's common stock available for future grants and awards | 95,956 | 95,956 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment reporting | |||||
Number of business segments | segment | 3 | ||||
Net interest income | $ 31,523 | $ 28,850 | $ 62,229 | $ 56,289 | |
Provision for loan losses | 430 | 1,356 | 680 | 1,486 | $ 1,388 |
Non-interest income | 20,489 | 15,729 | 35,758 | 33,334 | |
Non-interest expense | 30,117 | 22,878 | 56,409 | 47,022 | |
Provision for income taxes | 7,364 | 6,966 | 13,730 | 14,005 | |
Net income | 14,101 | 13,379 | 27,168 | 27,110 | |
Total Assets | 4,197,166 | 3,765,274 | 4,197,166 | 3,765,274 | $ 4,029,921 |
Average Assets | 4,064,857 | 3,614,681 | 4,030,603 | 3,498,814 | |
Operating segment | Commercial Banking | |||||
Segment reporting | |||||
Net interest income | 31,441 | 28,389 | 61,988 | 55,495 | |
Provision for loan losses | 430 | 1,356 | 680 | 1,486 | |
Non-interest income | 4,672 | 1,329 | 5,887 | 2,608 | |
Non-interest expense | 19,462 | 13,736 | 35,975 | 28,884 | |
Provision for income taxes | 5,464 | 4,905 | 10,222 | 9,121 | |
Net income | 10,757 | 9,721 | 20,998 | 18,612 | |
Total Assets | 4,103,454 | 3,691,168 | 4,103,454 | 3,691,168 | |
Average Assets | 3,983,461 | 3,549,647 | 3,952,952 | 3,436,687 | |
Operating segment | Mortgage Banking | |||||
Segment reporting | |||||
Net interest income | 283 | 642 | 640 | 1,153 | |
Non-interest income | 15,344 | 11,150 | 29,502 | 27,366 | |
Non-interest expense | 9,382 | 7,990 | 18,345 | 15,309 | |
Provision for income taxes | 2,251 | 1,390 | 4,250 | 4,824 | |
Net income | 3,994 | 2,412 | 7,547 | 8,386 | |
Total Assets | 527,342 | 526,078 | 527,342 | 526,078 | |
Average Assets | 398,262 | 428,458 | 365,329 | 348,331 | |
Operating segment | Wealth Management and Trust Services | |||||
Segment reporting | |||||
Non-interest income | 164 | 119 | 250 | 224 | |
Non-interest expense | 84 | 114 | 155 | 218 | |
Provision for income taxes | 28 | 2 | 33 | 2 | |
Net income | 52 | 3 | 62 | 4 | |
Total Assets | 2,530 | 2,404 | 2,530 | 2,404 | |
Average Assets | 589 | 2,415 | 1,524 | 2,412 | |
Other | |||||
Segment reporting | |||||
Net interest income | (201) | (181) | (399) | (359) | |
Non-interest income | 309 | 3,131 | 119 | 3,136 | |
Non-interest expense | 1,189 | 1,038 | 1,934 | 2,611 | |
Provision for income taxes | (379) | 669 | (775) | 58 | |
Net income | (702) | 1,243 | (1,439) | 108 | |
Total Assets | 453,218 | 410,330 | 453,218 | 410,330 | |
Average Assets | 456,808 | 415,288 | 456,470 | 416,411 | |
Intersegment Elimination | |||||
Segment reporting | |||||
Total Assets | (889,378) | (864,706) | (889,378) | (864,706) | |
Average Assets | $ (774,263) | $ (781,127) | $ (745,672) | $ (705,027) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Calculation of basic and diluted earnings per share | ||||
Net income available to common shareholders (in dollars) | $ 14,101 | $ 13,379 | $ 27,168 | $ 27,110 |
Weighted average common shares - basic (in shares) | 33,033,000 | 32,724,000 | 33,005,000 | 32,682,000 |
Weighted average common shares - diluted (in shares) | 33,569,000 | 33,207,000 | 33,499,000 | 33,132,000 |
Earnings per common share - basic | $ 0.43 | $ 0.41 | $ 0.82 | $ 0.83 |
Earnings per common share - diluted | $ 0.42 | $ 0.40 | $ 0.81 | $ 0.82 |
Composition of basic outstanding shares | ||||
Weighted average common shares outstanding | 32,425,000 | 32,188,000 | 32,408,000 | 32,155,000 |
Weighted average shares attributable to the deferred compensation plans | 608,000 | 536,000 | 597,000 | 527,000 |
Total weighted average shares - basic | 33,033,000 | 32,724,000 | 33,005,000 | 32,682,000 |
Composition of diluted outstanding shares | ||||
Weighted average common shares - basic (in shares) | 33,033,000 | 32,724,000 | 33,005,000 | 32,682,000 |
Incremental weighted average shares attributable to deferred compensation plans | 344,000 | 287,000 | 328,000 | 274,000 |
Weighted average shares attributable to vested stock options | 187,000 | 196,000 | 164,000 | 176,000 |
Incremental shares from restricted stock grants | 5,000 | 2,000 | ||
Total weighted average shares - diluted | 33,569,000 | 33,207,000 | 33,499,000 | 33,132,000 |
Antidilutive outstanding stock options excluded from the weighted average shares outstanding for the diluted earnings per share calculation (in shares) | 0 | 0 | 1,500 | 35,993 |
Restricted stock | ||||
Composition of diluted outstanding shares | ||||
Antidilutive outstanding stock options excluded from the weighted average shares outstanding for the diluted earnings per share calculation (in shares) | 1,311 | 75 | 2,651 | 153 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment Securities Available-for-Sale | ||
Gross Amortized cost | $ 384,621 | $ 402,132 |
Gross Unrealized Gains | 18,117 | 12,454 |
Gross Unrealized Losses | (216) | (509) |
Fair value | 402,522 | 414,077 |
Investment Securities Held-to-Maturity | ||
Gross Amortized cost | 3,796 | 3,836 |
Gross Unrealized Losses | (308) | (525) |
Fair Value | 3,488 | 3,311 |
Available-for-Sale, Amortized cost | ||
Within One Year | 18,661 | 9,225 |
After 1 year but within 5 years | 46,595 | 52,510 |
After 5 years but within 10 years | 28,818 | 38,095 |
After 10 years | 128,739 | 143,343 |
Mortgage-backed securities | 161,808 | 158,959 |
Total | 384,621 | 402,132 |
Available-for-Sale, Fair Value | ||
Within One Year | 19,052 | 9,382 |
After 1 year but within 5 years | 49,168 | 55,120 |
After 5 years but within 10 years | 30,325 | 40,243 |
After 10 years | 135,173 | 146,608 |
Mortgage-backed securities | 168,804 | 162,724 |
Fair Value | 402,522 | 414,077 |
Held-to-Maturity, Amortized cost | ||
After 10 years | 3,795 | 3,833 |
Mortgage-backed securities | 1 | 3 |
Total | 3,796 | 3,836 |
Held-to-Maturity, Fair Value | ||
After 10 years | 3,487 | 3,308 |
Mortgage-backed securities | 1 | 3 |
Fair Value | 3,488 | 3,311 |
U.S. government-sponsored agencies | ||
Investment Securities Available-for-Sale | ||
Gross Amortized cost | 45,266 | 70,617 |
Gross Unrealized Gains | 972 | 2,318 |
Gross Unrealized Losses | (30) | |
Fair value | 46,238 | 72,905 |
Available-for-Sale, Fair Value | ||
Fair Value | 46,238 | 72,905 |
Mortgage-backed securities | ||
Investment Securities Available-for-Sale | ||
Gross Amortized cost | 161,808 | 158,959 |
Gross Unrealized Gains | 7,212 | 3,982 |
Gross Unrealized Losses | (216) | (217) |
Fair value | 168,804 | 162,724 |
Investment Securities Held-to-Maturity | ||
Gross Amortized cost | 1 | 3 |
Fair Value | 1 | 3 |
Available-for-Sale, Fair Value | ||
Fair Value | 168,804 | 162,724 |
Held-to-Maturity, Fair Value | ||
Fair Value | 1 | 3 |
Municipal securities | ||
Investment Securities Available-for-Sale | ||
Gross Amortized cost | 177,547 | 172,556 |
Gross Unrealized Gains | 9,933 | 6,154 |
Gross Unrealized Losses | (262) | |
Fair value | 187,480 | 178,448 |
Available-for-Sale, Fair Value | ||
Fair Value | 187,480 | 178,448 |
Pooled trust preferred securities | ||
Investment Securities Held-to-Maturity | ||
Gross Amortized cost | 3,795 | 3,833 |
Gross Unrealized Losses | (308) | (525) |
Fair Value | 3,487 | 3,308 |
Held-to-Maturity, Fair Value | ||
Fair Value | $ 3,487 | $ 3,308 |
Investment Securities and Other
Investment Securities and Other Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment Securities Available-for-Sale, Total temporary impaired securities | ||
Less than 12 months, Fair Value | $ 6,229 | $ 87,055 |
Less than 12 months, Unrealized loss | (197) | (493) |
12 months or more, Fair Value | 612 | 936 |
12 months or more, Unrealized loss | (19) | (16) |
Total Fair Value | 6,841 | 87,991 |
Total Unrealized loss | (216) | (509) |
Investment Securities Held-to-Maturity, Total temporary impaired securities | ||
12 months or more, Fair Value | 3,487 | 3,308 |
12 months or more, Unrealized loss | (308) | (525) |
Total Fair Value | 3,487 | 3,308 |
Total Unrealized loss | (308) | (525) |
U.S. government-sponsored agencies | ||
Investment Securities Available-for-Sale, Total temporary impaired securities | ||
Less than 12 months, Fair Value | 9,970 | |
Less than 12 months, Unrealized loss | (30) | |
Total Fair Value | 9,970 | |
Total Unrealized loss | (30) | |
Mortgage-backed securities | ||
Investment Securities Available-for-Sale, Total temporary impaired securities | ||
Less than 12 months, Fair Value | 6,229 | 46,772 |
Less than 12 months, Unrealized loss | (197) | (202) |
12 months or more, Fair Value | 612 | 677 |
12 months or more, Unrealized loss | (19) | (15) |
Total Fair Value | 6,841 | 47,449 |
Total Unrealized loss | (216) | (217) |
Municipal securities | ||
Investment Securities Available-for-Sale, Total temporary impaired securities | ||
Less than 12 months, Fair Value | 30,313 | |
Less than 12 months, Unrealized loss | (261) | |
12 months or more, Fair Value | 259 | |
12 months or more, Unrealized loss | (1) | |
Total Fair Value | 30,572 | |
Total Unrealized loss | (262) | |
Pooled trust preferred securities | ||
Investment Securities Held-to-Maturity, Total temporary impaired securities | ||
12 months or more, Fair Value | 3,487 | 3,308 |
12 months or more, Unrealized loss | (308) | (525) |
Total Fair Value | 3,487 | 3,308 |
Total Unrealized loss | $ (308) | $ (525) |
Investment Securities- Other in
Investment Securities- Other information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Investment Securities and Other Investments | |||
Percentage of the company's mortgage-related securities guaranteed by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association | 99.00% | ||
Investment | $ 3,796,000 | $ 3,796,000 | $ 3,836,000 |
Trading Securities | 6,489,000 | 6,489,000 | 5,881,000 |
Other-than-temporary impairment recognized on remaining securities | 0 | 0 | |
Cash and Cash Equivalents | |||
Investment Securities and Other Investments | |||
Trading Securities | 710,000 | 710,000 | 702,000 |
Mutual funds | |||
Investment Securities and Other Investments | |||
Trading Securities | 5,779,000 | 5,779,000 | $ 5,179,000 |
Non-government non-agency mortgage-related securities | |||
Investment Securities and Other Investments | |||
Investment | $ 884,000 | $ 884,000 |
Loans Receivable and Allowanc36
Loans Receivable and Allowance for Loan Losses (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2016USD ($)item | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | $ 3,160,980 | $ 3,060,836 | $ 2,800,276 | |||
Net deferred fees and costs | (4,109) | (4,526) | ||||
Loans receivable, net of deferred fees and costs | 3,156,871 | 3,056,310 | ||||
Allowance for loan losses | (32,984) | $ (32,407) | (31,723) | (30,198) | $ (28,884) | $ (28,275) |
Loans receivable, net | $ 3,123,887 | 3,024,587 | ||||
Number of components in loan portfolio | item | 2 | |||||
Originated | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | $ 3,066,647 | 2,958,171 | ||||
Net deferred fees and costs | (4,109) | (4,526) | ||||
Loans receivable, net of deferred fees and costs | 3,062,538 | 2,953,645 | ||||
Allowance for loan losses | (32,537) | (31,564) | ||||
Loans receivable, net | 3,030,001 | 2,922,081 | ||||
Acquired | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 94,333 | 102,665 | ||||
Loans receivable, net of deferred fees and costs | 94,333 | 102,665 | ||||
Allowance for loan losses | (447) | (159) | ||||
Loans receivable, net | 93,886 | 102,506 | ||||
Commercial and industrial | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 350,513 | 379,687 | 341,249 | |||
Allowance for loan losses | (1,491) | (1,551) | (1,623) | (2,045) | (2,125) | (2,061) |
Commercial and industrial | Originated | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 339,537 | 366,549 | ||||
Commercial and industrial | Acquired | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 10,976 | 13,138 | ||||
Real estate - commercial | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 1,610,108 | 1,500,305 | 1,303,026 | |||
Allowance for loan losses | (21,777) | (21,097) | (20,356) | (18,216) | (17,715) | (17,820) |
Real estate - commercial | Originated | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 1,536,393 | 1,421,976 | ||||
Real estate - commercial | Acquired | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 73,715 | 78,329 | ||||
Real estate - construction | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 572,682 | 573,601 | 574,932 | |||
Allowance for loan losses | (7,803) | (7,714) | (7,877) | (7,789) | (6,723) | (6,105) |
Real estate - construction | Originated | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 571,453 | 572,260 | ||||
Real estate - construction | Acquired | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 1,229 | 1,341 | ||||
Real estate - residential | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 460,741 | 445,766 | 431,589 | |||
Allowance for loan losses | (1,652) | (1,619) | (1,462) | (1,881) | (1,961) | (1,954) |
Real estate - residential | Originated | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 454,789 | 439,346 | ||||
Real estate - residential | Acquired | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 5,952 | 6,420 | ||||
Home equity lines | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 161,457 | 156,631 | 144,655 | |||
Allowance for loan losses | (222) | (396) | (377) | (236) | (326) | (301) |
Home equity lines | Originated | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 159,472 | 153,762 | ||||
Home equity lines | Acquired | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 1,985 | 2,869 | ||||
Consumer | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 5,479 | 4,846 | 4,825 | |||
Allowance for loan losses | (39) | $ (30) | (28) | $ (31) | $ (34) | $ (34) |
Consumer | Originated | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | 5,003 | 4,278 | ||||
Consumer | Acquired | ||||||
Loans receivable and allowance for loan losses | ||||||
Loans receivable, gross | $ 476 | $ 568 |
Loans Receivable and Allowanc37
Loans Receivable and Allowance for Loan Losses- Acquired (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Acquired | ||
Loans receivable and allowance for loan losses | ||
Outstanding principal balance | $ 98,833 | $ 107,278 |
Carrying amount | 94,333 | 102,665 |
Purchased credit impaired loans | ||
Loans receivable and allowance for loan losses | ||
Outstanding principal balance | 9,033 | 10,886 |
Carrying amount | 5,893 | 7,723 |
Purchased performing loans | ||
Loans receivable and allowance for loan losses | ||
Outstanding principal balance | 89,800 | 96,392 |
Carrying amount | $ 88,440 | $ 94,942 |
Loans Receivable and Allowanc38
Loans Receivable and Allowance for Loan Losses- Accretion (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Changes in the accretable discount which includes income recognized from contractual interest cash flows | ||
Balance at the beginning of the period | $ (4,613) | $ (5,053) |
Charge-offs | 504 | |
Recoveries | (61) | (55) |
Accretion | 174 | (9) |
Balance at the end of the period | $ (4,500) | $ (4,613) |
Loans Receivable and Allowanc39
Loans Receivable and Allowance for Loan Losses- Impairment Eval (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Allowance for loan losses | |||||
Balance at the beginning of year | $ 32,407 | $ 28,884 | $ 31,723 | $ 28,275 | $ 28,275 |
Charge-offs | (2) | (101) | (92) | (117) | (291) |
Recoveries | 149 | 59 | 673 | 554 | 2,351 |
Provision for loan losses | 430 | 1,356 | 680 | 1,486 | 1,388 |
Balance at the end of year | 32,984 | 30,198 | 32,984 | 30,198 | 31,723 |
Ending Balance, Collectively evaluated for impairment | 32,984 | 30,198 | 32,984 | 30,198 | 31,723 |
Loans Receivable | |||||
Ending Balance | 3,160,980 | 2,800,276 | 3,160,980 | 2,800,276 | 3,060,836 |
Ending Balance, Individually evaluated for impairment | 3,356 | 7,622 | 3,356 | 7,622 | 7,147 |
Purchased Credit Impaired Loans | 5,893 | 11,035 | 5,893 | 11,035 | 7,723 |
Ending Balance, Collectively evaluated for impairment | 3,151,731 | 2,781,619 | 3,151,731 | 2,781,619 | 3,045,966 |
Commercial and industrial | |||||
Allowance for loan losses | |||||
Balance at the beginning of year | 1,551 | 2,125 | 1,623 | 2,061 | 2,061 |
Charge-offs | (12) | (39) | (53) | (144) | |
Recoveries | 136 | 14 | 147 | 201 | 485 |
Provision for loan losses | (196) | (82) | (240) | (164) | (779) |
Balance at the end of year | 1,491 | 2,045 | 1,491 | 2,045 | 1,623 |
Ending Balance, Collectively evaluated for impairment | 1,491 | 2,045 | 1,491 | 2,045 | 1,623 |
Loans Receivable | |||||
Ending Balance | 350,513 | 341,249 | 350,513 | 341,249 | 379,687 |
Ending Balance, Individually evaluated for impairment | 665 | 738 | 665 | 738 | 893 |
Purchased Credit Impaired Loans | 79 | 2,221 | 79 | 2,221 | 863 |
Ending Balance, Collectively evaluated for impairment | 349,769 | 338,290 | 349,769 | 338,290 | 377,931 |
Real estate - commercial | |||||
Allowance for loan losses | |||||
Balance at the beginning of year | 21,097 | 17,715 | 20,356 | 17,820 | 17,820 |
Charge-offs | (38) | ||||
Recoveries | 31 | 50 | 324 | 1,802 | |
Provision for loan losses | 680 | 508 | 1,371 | 72 | 734 |
Balance at the end of year | 21,777 | 18,216 | 21,777 | 18,216 | 20,356 |
Ending Balance, Collectively evaluated for impairment | 21,777 | 18,216 | 21,777 | 18,216 | 20,356 |
Loans Receivable | |||||
Ending Balance | 1,610,108 | 1,303,026 | 1,610,108 | 1,303,026 | 1,500,305 |
Ending Balance, Individually evaluated for impairment | 2,015 | 6,583 | 2,015 | 6,583 | 5,616 |
Purchased Credit Impaired Loans | 3,841 | 6,312 | 3,841 | 6,312 | 4,669 |
Ending Balance, Collectively evaluated for impairment | 1,604,252 | 1,290,131 | 1,604,252 | 1,290,131 | 1,490,020 |
Real estate - construction | |||||
Allowance for loan losses | |||||
Balance at the beginning of year | 7,714 | 6,723 | 7,877 | 6,105 | 6,105 |
Recoveries | 6 | 451 | 11 | 22 | |
Provision for loan losses | 89 | 1,060 | (525) | 1,673 | 1,750 |
Balance at the end of year | 7,803 | 7,789 | 7,803 | 7,789 | 7,877 |
Ending Balance, Collectively evaluated for impairment | 7,803 | 7,789 | 7,803 | 7,789 | 7,877 |
Loans Receivable | |||||
Ending Balance | 572,682 | 574,932 | 572,682 | 574,932 | 573,601 |
Ending Balance, Individually evaluated for impairment | 250 | 250 | |||
Purchased Credit Impaired Loans | 1,229 | 1,653 | 1,229 | 1,653 | 1,341 |
Ending Balance, Collectively evaluated for impairment | 571,453 | 573,029 | 571,453 | 573,029 | 572,260 |
Real estate - residential | |||||
Allowance for loan losses | |||||
Balance at the beginning of year | 1,619 | 1,961 | 1,462 | 1,954 | 1,954 |
Charge-offs | (28) | ||||
Recoveries | 13 | 8 | 25 | 18 | 42 |
Provision for loan losses | 20 | (88) | 165 | (91) | (506) |
Balance at the end of year | 1,652 | 1,881 | 1,652 | 1,881 | 1,462 |
Ending Balance, Collectively evaluated for impairment | 1,652 | 1,881 | 1,652 | 1,881 | 1,462 |
Loans Receivable | |||||
Ending Balance | 460,741 | 431,589 | 460,741 | 431,589 | 445,766 |
Ending Balance, Individually evaluated for impairment | 587 | ||||
Purchased Credit Impaired Loans | 260 | 349 | 260 | 349 | 338 |
Ending Balance, Collectively evaluated for impairment | 460,481 | 431,240 | 460,481 | 431,240 | 444,841 |
Home equity lines | |||||
Allowance for loan losses | |||||
Balance at the beginning of year | 396 | 326 | 377 | 301 | 301 |
Charge-offs | (51) | (51) | (48) | (48) | |
Provision for loan losses | (174) | (39) | (104) | (17) | 124 |
Balance at the end of year | 222 | 236 | 222 | 236 | 377 |
Ending Balance, Collectively evaluated for impairment | 222 | 236 | 222 | 236 | 377 |
Loans Receivable | |||||
Ending Balance | 161,457 | 144,655 | 161,457 | 144,655 | 156,631 |
Ending Balance, Individually evaluated for impairment | 676 | 51 | 676 | 51 | 51 |
Purchased Credit Impaired Loans | 484 | 498 | 484 | 498 | 512 |
Ending Balance, Collectively evaluated for impairment | 160,297 | 144,106 | 160,297 | 144,106 | 156,068 |
Consumer | |||||
Allowance for loan losses | |||||
Balance at the beginning of year | 30 | 34 | 28 | 34 | 34 |
Charge-offs | (2) | (2) | (16) | (71) | |
Provision for loan losses | 11 | (3) | 13 | 13 | 65 |
Balance at the end of year | 39 | 31 | 39 | 31 | 28 |
Ending Balance, Collectively evaluated for impairment | 39 | 31 | 39 | 31 | 28 |
Loans Receivable | |||||
Ending Balance | 5,479 | 4,825 | 5,479 | 4,825 | 4,846 |
Purchased Credit Impaired Loans | 2 | 2 | |||
Ending Balance, Collectively evaluated for impairment | $ 5,479 | $ 4,823 | $ 5,479 | $ 4,823 | $ 4,846 |
Loans Receivable and Allowanc40
Loans Receivable and Allowance for Loan Losses- Aging (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Nonaccrual and Past Due Loans | |||
Total Loans | $ 3,160,980 | $ 3,060,836 | $ 2,800,276 |
Originated | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 777 | 1,047 | |
Current | 3,065,870 | 2,957,124 | |
Total Loans | 3,066,647 | 2,958,171 | |
90 Days Past Due and Still Accruing | 41 | ||
Nonaccrual Loans | 109 | ||
Originated | Financing Receivables, 30 to 59 Days Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 736 | 351 | |
Originated | Financing Receivables, 60 to 89 Days Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 587 | ||
Originated | Financing Receivables, 90 Days or More Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 41 | 109 | |
Acquired | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 342 | ||
Current | 94,333 | 102,323 | |
Total Loans | 94,333 | 102,665 | |
Nonaccrual Loans | 342 | ||
Acquired | Financing Receivables, 90 Days or More Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 342 | ||
Commercial and industrial | |||
Nonaccrual and Past Due Loans | |||
Total Loans | 350,513 | 379,687 | 341,249 |
Commercial and industrial | Originated | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 58 | ||
Current | 339,537 | 366,491 | |
Total Loans | 339,537 | 366,549 | |
Nonaccrual Loans | 58 | ||
Commercial and industrial | Originated | Financing Receivables, 90 Days or More Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 58 | ||
Commercial and industrial | Acquired | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 342 | ||
Current | 10,976 | 12,796 | |
Total Loans | 10,976 | 13,138 | |
Nonaccrual Loans | 342 | ||
Commercial and industrial | Acquired | Financing Receivables, 90 Days or More Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 342 | ||
Owner occupied | Originated | |||
Nonaccrual and Past Due Loans | |||
Current | 375,631 | 360,287 | |
Total Loans | 375,631 | 360,287 | |
Owner occupied | Acquired | |||
Nonaccrual and Past Due Loans | |||
Current | 34,141 | 37,450 | |
Total Loans | 34,141 | 37,450 | |
Non-owner occupied | Originated | |||
Nonaccrual and Past Due Loans | |||
Current | 1,160,762 | 1,061,689 | |
Total Loans | 1,160,762 | 1,061,689 | |
Non-owner occupied | Acquired | |||
Nonaccrual and Past Due Loans | |||
Current | 39,574 | 40,879 | |
Total Loans | 39,574 | 40,879 | |
Residential | Originated | |||
Nonaccrual and Past Due Loans | |||
Current | 241,895 | 257,679 | |
Total Loans | 241,895 | 257,679 | |
Residential | Acquired | |||
Nonaccrual and Past Due Loans | |||
Current | 744 | 811 | |
Total Loans | 744 | 811 | |
Commercial | Originated | |||
Nonaccrual and Past Due Loans | |||
Current | 329,558 | 314,581 | |
Total Loans | 329,558 | 314,581 | |
Commercial | Acquired | |||
Nonaccrual and Past Due Loans | |||
Current | 485 | 530 | |
Total Loans | 485 | 530 | |
Single family | Originated | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 938 | ||
Current | 215,486 | 250,063 | |
Total Loans | 215,486 | 251,001 | |
Single family | Originated | Financing Receivables, 30 to 59 Days Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 351 | ||
Single family | Originated | Financing Receivables, 60 to 89 Days Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 587 | ||
Single family | Acquired | |||
Nonaccrual and Past Due Loans | |||
Current | 5,952 | 6,420 | |
Total Loans | 5,952 | 6,420 | |
Multi-family | Originated | |||
Nonaccrual and Past Due Loans | |||
Current | 239,303 | 188,345 | |
Total Loans | 239,303 | 188,345 | |
Home equity lines | |||
Nonaccrual and Past Due Loans | |||
Total Loans | 161,457 | 156,631 | $ 144,655 |
Home equity lines | Originated | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 775 | 51 | |
Current | 158,697 | 153,711 | |
Total Loans | 159,472 | 153,762 | |
90 Days Past Due and Still Accruing | 41 | ||
Nonaccrual Loans | 51 | ||
Home equity lines | Originated | Financing Receivables, 30 to 59 Days Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 734 | ||
Home equity lines | Originated | Financing Receivables, 90 Days or More Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 41 | 51 | |
Home equity lines | Acquired | |||
Nonaccrual and Past Due Loans | |||
Current | 1,985 | 2,869 | |
Total Loans | 1,985 | 2,869 | |
Installment | Originated | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 1 | ||
Current | 4,525 | 3,830 | |
Total Loans | 4,526 | 3,830 | |
Installment | Originated | Financing Receivables, 30 to 59 Days Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 1 | ||
Installment | Acquired | |||
Nonaccrual and Past Due Loans | |||
Current | 476 | 568 | |
Total Loans | 476 | 568 | |
Credit cards | Originated | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | 1 | ||
Current | 476 | 448 | |
Total Loans | 477 | $ 448 | |
Credit cards | Originated | Financing Receivables, 30 to 59 Days Past Due | |||
Nonaccrual and Past Due Loans | |||
Recorded Investment Past Due | $ 1 |
Loans Receivable and Allowanc41
Loans Receivable and Allowance for Loan Losses- Related Allowance (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Originated | ||
Recorded Investment | ||
Total | $ 3,356 | $ 7,147 |
Unpaid Principal Balance | ||
Total | 3,775 | 8,015 |
Interest Income Recognized | ||
Total | 10 | 39 |
Average Recorded Investment | ||
Total | 4,444 | 4,514 |
Acquired | ||
Recorded Investment | ||
Total | 1,229 | 1,062 |
Unpaid Principal Balance | ||
Total | 1,516 | 1,322 |
Interest Income Recognized | ||
Total | 10 | 5 |
Average Recorded Investment | ||
Total | 1,171 | 2,025 |
Commercial and industrial | Originated | ||
Recorded Investment | ||
With no related allowance | 665 | 893 |
Total | 665 | 893 |
Unpaid Principal Balance | ||
With no related allowance | 665 | 916 |
Total | 665 | 916 |
Interest Income Recognized | ||
With no related allowance | 2 | 1 |
Total | 2 | 1 |
Average Recorded Investment | ||
With no related allowance | 769 | 1,026 |
Total | 769 | 1,026 |
Commercial and industrial | Acquired | ||
Recorded Investment | ||
With no related allowance | 342 | |
Total | 342 | |
Unpaid Principal Balance | ||
With no related allowance | 470 | |
Total | 470 | |
Average Recorded Investment | ||
With no related allowance | 114 | 459 |
Total | 114 | 459 |
Real estate - commercial | Originated | ||
Recorded Investment | ||
Total | 2,015 | 5,616 |
Unpaid Principal Balance | ||
Total | 2,434 | 6,461 |
Interest Income Recognized | ||
Total | 2 | 30 |
Average Recorded Investment | ||
Total | 3,223 | 2,953 |
Real estate - commercial | Acquired | ||
Recorded Investment | ||
Total | 190 | |
Unpaid Principal Balance | ||
Total | 225 | |
Interest Income Recognized | ||
Total | 1 | |
Average Recorded Investment | ||
Total | 63 | 728 |
Non-owner occupied | Originated | ||
Recorded Investment | ||
With no related allowance | 2,015 | 5,616 |
Unpaid Principal Balance | ||
With no related allowance | 2,434 | 6,461 |
Interest Income Recognized | ||
With no related allowance | 2 | 30 |
Average Recorded Investment | ||
With no related allowance | 3,223 | 2,953 |
Non-owner occupied | Acquired | ||
Recorded Investment | ||
With no related allowance | 190 | |
Unpaid Principal Balance | ||
With no related allowance | 225 | |
Interest Income Recognized | ||
With no related allowance | 1 | |
Average Recorded Investment | ||
With no related allowance | 63 | 728 |
Real estate - construction | Originated | ||
Average Recorded Investment | ||
Total | 125 | |
Real estate - construction | Acquired | ||
Recorded Investment | ||
Total | 1,229 | 530 |
Unpaid Principal Balance | ||
Total | 1,516 | 627 |
Interest Income Recognized | ||
Total | 10 | 4 |
Average Recorded Investment | ||
Total | 994 | 685 |
Residential | Acquired | ||
Recorded Investment | ||
With no related allowance | 744 | |
Unpaid Principal Balance | ||
With no related allowance | 895 | |
Interest Income Recognized | ||
With no related allowance | 6 | |
Average Recorded Investment | ||
With no related allowance | 495 | |
Commercial | Originated | ||
Average Recorded Investment | ||
With no related allowance | 125 | |
Commercial | Acquired | ||
Recorded Investment | ||
With no related allowance | 485 | 530 |
Unpaid Principal Balance | ||
With no related allowance | 621 | 627 |
Interest Income Recognized | ||
With no related allowance | 4 | 4 |
Average Recorded Investment | ||
With no related allowance | 499 | 685 |
Real estate - residential | Originated | ||
Recorded Investment | ||
Total | 587 | |
Unpaid Principal Balance | ||
Total | 587 | |
Interest Income Recognized | ||
Total | 8 | |
Average Recorded Investment | ||
Total | 196 | 294 |
Real estate - residential | Acquired | ||
Average Recorded Investment | ||
Total | 153 | |
Single family | Originated | ||
Recorded Investment | ||
With no related allowance | 587 | |
Unpaid Principal Balance | ||
With no related allowance | 587 | |
Interest Income Recognized | ||
With no related allowance | 8 | |
Average Recorded Investment | ||
With no related allowance | 196 | 294 |
Single family | Acquired | ||
Average Recorded Investment | ||
With no related allowance | 153 | |
Home equity lines | Originated | ||
Recorded Investment | ||
With no related allowance | 676 | 51 |
Total | 676 | 51 |
Unpaid Principal Balance | ||
With no related allowance | 676 | 51 |
Total | 676 | 51 |
Interest Income Recognized | ||
With no related allowance | 6 | |
Total | 6 | |
Average Recorded Investment | ||
With no related allowance | 256 | 116 |
Total | $ 256 | $ 116 |
Loans Receivable and Allowanc42
Loans Receivable and Allowance for Loan Losses- TDR (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)loan | Jun. 30, 2015loan | Jun. 30, 2016USD ($)itemloan | Jun. 30, 2015loan | Dec. 31, 2015USD ($)loan | |
Loans Receivable and Allowance for Loan Losses | |||||
Number of TDR's outstanding | 2 | 2 | |||
Number of borrowers holding two TDR's | item | 1 | ||||
Number of acquired loans classified as TDRs | item | 0 | ||||
Restructured loans, loan loss reserves | $ | $ 0 | $ 0 | $ 0 | ||
Outstanding commitments to advance additional funds | $ | $ 0 | $ 0 | $ 0 | ||
Troubled Debt Restructurings with Payment Default In The Previous Twelve Months | |||||
Number of modified loans | 0 | 0 | 0 | 0 | |
Number of Loans | 0 | 0 | 0 | 0 |
Loans Receivable and Allowanc43
Loans Receivable and Allowance for Loan Losses- Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Internal Risk Rating Grades | |||
Loans receivable, gross | $ 3,160,980 | $ 3,060,836 | $ 2,800,276 |
Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 3,066,647 | 2,958,171 | |
Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 94,333 | 102,665 | |
Commercial and industrial | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 350,513 | 379,687 | 341,249 |
Commercial and industrial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 339,537 | 366,549 | |
Commercial and industrial | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 10,976 | 13,138 | |
Real estate - commercial | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1,610,108 | 1,500,305 | 1,303,026 |
Real estate - commercial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1,536,393 | 1,421,976 | |
Real estate - commercial | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 73,715 | 78,329 | |
Owner occupied | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 375,631 | 360,287 | |
Owner occupied | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 34,141 | 37,450 | |
Non-owner occupied | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1,160,762 | 1,061,689 | |
Non-owner occupied | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 39,574 | 40,879 | |
Real estate - construction | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 572,682 | 573,601 | 574,932 |
Real estate - construction | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 571,453 | 572,260 | |
Real estate - construction | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1,229 | 1,341 | |
Residential | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 241,895 | 257,679 | |
Residential | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 744 | 811 | |
Commercial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 329,558 | 314,581 | |
Commercial | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 485 | 530 | |
Real estate - residential | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 460,741 | 445,766 | 431,589 |
Real estate - residential | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 454,789 | 439,346 | |
Real estate - residential | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 5,952 | 6,420 | |
Single family | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 215,486 | 251,001 | |
Single family | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 5,952 | 6,420 | |
Multi-family | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 239,303 | 188,345 | |
Home equity lines | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 161,457 | 156,631 | 144,655 |
Home equity lines | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 159,472 | 153,762 | |
Home equity lines | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1,985 | 2,869 | |
Consumer | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 5,479 | 4,846 | $ 4,825 |
Consumer | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 5,003 | 4,278 | |
Consumer | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 476 | 568 | |
Installment | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 4,526 | 3,830 | |
Installment | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 476 | 568 | |
Credit cards | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 477 | 448 | |
Pass | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 3,058,017 | 2,942,168 | |
Pass | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 84,172 | 96,292 | |
Pass | Commercial and industrial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 338,408 | 364,932 | |
Pass | Commercial and industrial | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 10,939 | 12,744 | |
Pass | Owner occupied | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 375,631 | 360,287 | |
Pass | Owner occupied | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 34,141 | 37,450 | |
Pass | Non-owner occupied | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1,158,370 | 1,058,293 | |
Pass | Non-owner occupied | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 30,679 | 35,430 | |
Pass | Residential | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 241,895 | 257,679 | |
Pass | Residential | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 811 | ||
Pass | Commercial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 325,226 | 304,580 | |
Pass | Single family | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 215,486 | 250,063 | |
Pass | Single family | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 5,952 | 6,420 | |
Pass | Multi-family | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 239,303 | 188,345 | |
Pass | Home equity lines | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 158,697 | 153,711 | |
Pass | Home equity lines | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1,985 | 2,869 | |
Pass | Installment | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 4,525 | 3,830 | |
Pass | Installment | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 476 | 568 | |
Pass | Credit cards | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 476 | 448 | |
OLEM | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 5,274 | 8,856 | |
OLEM | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 8,932 | 5,311 | |
OLEM | Commercial and industrial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 464 | 724 | |
OLEM | Commercial and industrial | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 37 | 52 | |
OLEM | Non-owner occupied | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 377 | 3,396 | |
OLEM | Non-owner occupied | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 8,895 | 5,259 | |
OLEM | Commercial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 4,332 | 4,385 | |
OLEM | Single family | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 351 | ||
OLEM | Home equity lines | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 99 | ||
OLEM | Installment | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1 | ||
OLEM | Credit cards | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1 | ||
Substandard | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 3,356 | 7,147 | |
Substandard | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 1,229 | 1,062 | |
Substandard | Commercial and industrial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 665 | 893 | |
Substandard | Commercial and industrial | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 342 | ||
Substandard | Non-owner occupied | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 2,015 | ||
Substandard | Non-owner occupied | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 190 | ||
Substandard | Residential | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 744 | ||
Substandard | Commercial | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 5,616 | ||
Substandard | Commercial | Acquired | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 485 | 530 | |
Substandard | Single family | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | 587 | ||
Substandard | Home equity lines | Originated | |||
Internal Risk Rating Grades | |||
Loans receivable, gross | $ 676 | $ 51 |
Derivative Instruments and He44
Derivative Instruments and Hedging Activities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities | |||
Period from closing within which loans held for sale are generally sold | 30 days | ||
Loans closed and presented as held for sale | $ 456,359,000 | $ 456,359,000 | $ 383,768,000 |
Rate Lock and Forward Loan Sales Commitments | |||
Derivative Instruments and Hedging Activities | |||
Notional amount | 426,600,000 | 426,600,000 | |
Forward Loan Sales Commitments | |||
Derivative Instruments and Hedging Activities | |||
Notional amount | 178,200,000 | 178,200,000 | |
Derivatives in cash flow hedging relationships | |||
Derivative Instruments and Hedging Activities | |||
Accumulated other comprehensive income included an unrealized loss, net of tax | 729,000 | 729,000 | |
Gain related to hedges that do not perfectly offset | $ 1 | $ 425,000 |
Fair Value of Derivative Inst45
Fair Value of Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | $ 30,529 | $ 19,146 |
Liability Derivatives, Fair Value | 8,040 | 2,458 |
Forward Loan Sales Commitments | Accrued Interest Receivable and Other Assets | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 91 | |
Forward Loan Sales Commitments | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | 3,842 | |
Mortgage-backed securities | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | 4,112 | |
Interest Rate Lock Commitments | Accrued Interest Receivable and Other Assets | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 30,438 | |
Interest Rate Lock Commitments | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | 86 | |
Derivative Instruments Designated Within a Hedging Relationship | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 5 | 1,985 |
Liability Derivatives, Fair Value | 1,138 | 1,896 |
Derivative Instruments Designated Within a Hedging Relationship | Forward Loan Sales Commitments | Accrued Interest Receivable and Other Assets | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 5 | 1,569 |
Derivative Instruments Designated Within a Hedging Relationship | Forward Loan Sales Commitments | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | 1,138 | 1,419 |
Derivative Instruments Designated Within a Hedging Relationship | Interest Rate Lock Commitments | Accrued Interest Receivable and Other Assets | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 416 | |
Derivative Instruments Designated Within a Hedging Relationship | Interest Rate Lock Commitments | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | 477 | |
Derivative Instruments Not Designated Within a Hedging Relationship | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 30,524 | 17,161 |
Liability Derivatives, Fair Value | 6,902 | 562 |
Derivative Instruments Not Designated Within a Hedging Relationship | Forward Loan Sales Commitments | Accrued Interest Receivable and Other Assets | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 86 | |
Derivative Instruments Not Designated Within a Hedging Relationship | Forward Loan Sales Commitments | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | 2,704 | |
Derivative Instruments Not Designated Within a Hedging Relationship | Rate Lock and Forward Loan Sales Commitments | Accrued Interest Receivable and Other Assets | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 16,784 | |
Derivative Instruments Not Designated Within a Hedging Relationship | Rate Lock and Forward Loan Sales Commitments | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | 168 | |
Derivative Instruments Not Designated Within a Hedging Relationship | Mortgage-backed securities | Accrued Interest Receivable and Other Assets | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 64 | |
Derivative Instruments Not Designated Within a Hedging Relationship | Mortgage-backed securities | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | 4,112 | 181 |
Derivative Instruments Not Designated Within a Hedging Relationship | Interest Rate Lock Commitments | Accrued Interest Receivable and Other Assets | ||
Derivative Instruments and Hedging Activities | ||
Asset Derivatives, Fair Value | 30,438 | 313 |
Derivative Instruments Not Designated Within a Hedging Relationship | Interest Rate Lock Commitments | Accrued Interest Payable and Other Liabilities | ||
Derivative Instruments and Hedging Activities | ||
Liability Derivatives, Fair Value | $ 86 | $ 213 |
Fair Value of Derivative Inst46
Fair Value of Derivative Instruments and Hedging Activities-Realized Gain (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities | |||||
Asset Derivative, Notional Amount | $ 401,820 | $ 401,820 | |||
Liability Derivative, Notional Amount | 625,667 | 625,667 | |||
Asset Derivatives, Fair Value | 30,529 | 30,529 | $ 19,146 | ||
Liability Derivatives, Fair Value | 8,040 | 8,040 | 2,458 | ||
Derivative Instruments Not Designated Within a Hedging Relationship | |||||
Impact of Derivative Instruments on the Statement of Income | |||||
Amount of Gain (Loss) Recognized in Income on Derivative | 23,622 | $ 20,485 | 45,162 | $ 39,997 | |
Derivative Instruments and Hedging Activities | |||||
Asset Derivatives, Fair Value | 30,524 | 30,524 | 17,161 | ||
Liability Derivatives, Fair Value | 6,902 | 6,902 | 562 | ||
Interest Rate Lock Commitments | Accrued Interest Receivable and Other Assets | |||||
Derivative Instruments and Hedging Activities | |||||
Asset Derivative, Notional Amount | 390,545 | 390,545 | |||
Asset Derivatives, Fair Value | 30,438 | 30,438 | |||
Interest Rate Lock Commitments | Accrued Interest Payable and Other Liabilities | |||||
Derivative Instruments and Hedging Activities | |||||
Liability Derivative, Notional Amount | 36,055 | 36,055 | |||
Liability Derivatives, Fair Value | 86 | 86 | |||
Interest Rate Lock Commitments | Derivative Instruments Not Designated Within a Hedging Relationship | Accrued Interest Receivable and Other Assets | |||||
Derivative Instruments and Hedging Activities | |||||
Asset Derivatives, Fair Value | 30,438 | 30,438 | 313 | ||
Interest Rate Lock Commitments | Derivative Instruments Not Designated Within a Hedging Relationship | Accrued Interest Payable and Other Liabilities | |||||
Derivative Instruments and Hedging Activities | |||||
Liability Derivatives, Fair Value | 86 | 86 | 213 | ||
Interest Rate Lock Commitments | Derivative Instruments Not Designated Within a Hedging Relationship | Realized and unrealized gains on mortgage banking activities | |||||
Impact of Derivative Instruments on the Statement of Income | |||||
Amount of Gain (Loss) Recognized in Income on Derivative | 30,352 | 20,485 | 52,806 | 39,997 | |
Interest Rate Lock Commitments | Derivative Instruments Not Designated Within a Hedging Relationship | Other Income | |||||
Impact of Derivative Instruments on the Statement of Income | |||||
Amount of Gain (Loss) Recognized in Income on Derivative | (1,063) | 993 | |||
Forward Loan Sales Commitments | Accrued Interest Receivable and Other Assets | |||||
Derivative Instruments and Hedging Activities | |||||
Asset Derivative, Notional Amount | 11,275 | 11,275 | |||
Asset Derivatives, Fair Value | 91 | 91 | |||
Forward Loan Sales Commitments | Accrued Interest Payable and Other Liabilities | |||||
Derivative Instruments and Hedging Activities | |||||
Liability Derivative, Notional Amount | 184,112 | 184,112 | |||
Liability Derivatives, Fair Value | 3,842 | 3,842 | |||
Forward Loan Sales Commitments | Derivative Instruments Not Designated Within a Hedging Relationship | Accrued Interest Receivable and Other Assets | |||||
Derivative Instruments and Hedging Activities | |||||
Asset Derivatives, Fair Value | 86 | 86 | |||
Forward Loan Sales Commitments | Derivative Instruments Not Designated Within a Hedging Relationship | Accrued Interest Payable and Other Liabilities | |||||
Derivative Instruments and Hedging Activities | |||||
Liability Derivatives, Fair Value | 2,704 | 2,704 | |||
Forward Loan Sales Commitments | Derivative Instruments Not Designated Within a Hedging Relationship | Other Income | |||||
Impact of Derivative Instruments on the Statement of Income | |||||
Amount of Gain (Loss) Recognized in Income on Derivative | (2,618) | 1,063 | (3,532) | (993) | |
Mortgage-backed securities | Accrued Interest Payable and Other Liabilities | |||||
Derivative Instruments and Hedging Activities | |||||
Liability Derivative, Notional Amount | 405,500 | 405,500 | |||
Liability Derivatives, Fair Value | 4,112 | 4,112 | |||
Mortgage-backed securities | Derivative Instruments Not Designated Within a Hedging Relationship | Accrued Interest Receivable and Other Assets | |||||
Derivative Instruments and Hedging Activities | |||||
Asset Derivatives, Fair Value | 64 | ||||
Mortgage-backed securities | Derivative Instruments Not Designated Within a Hedging Relationship | Accrued Interest Payable and Other Liabilities | |||||
Derivative Instruments and Hedging Activities | |||||
Liability Derivatives, Fair Value | 4,112 | 4,112 | $ 181 | ||
Mortgage-backed securities | Derivative Instruments Not Designated Within a Hedging Relationship | Realized and unrealized gains on mortgage banking activities | |||||
Impact of Derivative Instruments on the Statement of Income | |||||
Amount of Gain (Loss) Recognized in Income on Derivative | (4,112) | (4,112) | |||
Derivatives in cash flow hedging relationships | |||||
Impact of Derivative Instruments on the Statement of Income | |||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | 201 | 300 | (249) | 55 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | 159 | 8,629 | (373) | 9,336 | |
Derivatives in cash flow hedging relationships | Forward Loan Sales Commitments | Other Income | |||||
Impact of Derivative Instruments on the Statement of Income | |||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | 201 | 300 | (249) | 55 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | $ 159 | $ 8,629 | $ (373) | $ 9,336 |
Goodwill and Other Intangible47
Goodwill and Other Intangibles (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Gross Carrying Amount | ||||
Balance at the beginning of the period | $ 4,861,000 | |||
Balance at the end of the period | $ 4,861,000 | 4,861,000 | ||
Accumulated Amortization | ||||
Balance at the beginning of the period | 3,292,000 | |||
Aggregate amortization expense | 152,000 | $ 188,000 | 314,000 | $ 385,000 |
Balance at the end of the period | 3,606,000 | 3,606,000 | ||
Estimated amortization expense | ||||
2016 (June - December) | 281,000 | 281,000 | ||
2,017 | 454,000 | 454,000 | ||
2,018 | 313,000 | 313,000 | ||
2,019 | 172,000 | 172,000 | ||
2,020 | 35,000 | 35,000 | ||
Commercial Banking | ||||
Gross Carrying Amount | ||||
Balance at the beginning of the period | 3,080,000 | |||
Balance at the end of the period | 3,080,000 | 3,080,000 | ||
Accumulated Amortization | ||||
Balance at the beginning of the period | 1,511,000 | |||
Aggregate amortization expense | 314,000 | |||
Balance at the end of the period | 1,825,000 | 1,825,000 | ||
Mortgage Banking | ||||
Gross Carrying Amount | ||||
Balance at the beginning of the period | 1,781,000 | |||
Balance at the end of the period | 1,781,000 | 1,781,000 | ||
Accumulated Amortization | ||||
Balance at the beginning of the period | 1,781,000 | |||
Balance at the end of the period | $ 1,781,000 | $ 1,781,000 |
Goodwill and Other Intangibles-
Goodwill and Other Intangibles- Carrying Amount (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Goodwill | |
Balance at the beginning of the period | $ 35,007 |
Balance at the end of the period | 35,007 |
Commercial Banking | |
Goodwill | |
Balance at the beginning of the period | 24,887 |
Balance at the end of the period | 24,887 |
Mortgage Banking | |
Goodwill | |
Balance at the beginning of the period | 10,120 |
Balance at the end of the period | $ 10,120 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies | ||
Maximum expiration period of commitments | 1 year | |
Standby letters of credit outstanding | $ 30,600,000 | |
Amounts drawn | 0 | |
George Mason | Exposure to repurchase loans previously sold to investors | ||
Commitments and Contingencies | ||
Reserve for estimated exposure to repurchase loans previously sold to investors | 0 | $ 500,000 |
Floating rates | ||
Commitments and Contingencies | ||
Commitments to extend credit | 1,100,000,000 | |
Mortgage loan funding | George Mason | ||
Commitments and Contingencies | ||
Commitments to extend credit | $ 458,600,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Measurements | ||
Transfer in and out between level 1, level 2 and level 3 | $ 0 | |
Investment securities available-for-sale | 402,522,000 | $ 414,077,000 |
Investment securities - trading | 6,489,000 | 5,881,000 |
Investment securities held-to-maturity | 3,488,000 | 3,311,000 |
U.S. government-sponsored agencies | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 46,238,000 | 72,905,000 |
Mortgage-backed securities | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 168,804,000 | 162,724,000 |
Investment securities held-to-maturity | 1,000 | 3,000 |
Municipal securities | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 187,480,000 | 178,448,000 |
Pooled trust preferred securities | ||
Fair Value Measurements | ||
Investment securities held-to-maturity | 3,487,000 | 3,308,000 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Loans held for sale | 456,359,000 | 383,768,000 |
Loans receivable - evaluated for impairment | 2,291,000 | 707,000 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Loans receivable - evaluated for impairment | 3,154,659,000 | 3,004,553,000 |
Recurring Fair Value Measurements | Balance | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 402,522,000 | 414,077,000 |
Investment securities - trading | 6,489,000 | 5,881,000 |
Loans held for sale | 225,776,000 | |
Bank-owned life insurance | 33,213,000 | 32,978,000 |
Recurring Fair Value Measurements | Balance | Rate Lock and Forward Loan Sales Commitments | ||
Fair Value Measurements | ||
Derivative asset | 27,154,000 | 18,353,000 |
Derivative liability | 3,918,000 | 1,587,000 |
Recurring Fair Value Measurements | Balance | Interest Rate Lock Commitments | ||
Fair Value Measurements | ||
Derivative asset | 3,375,000 | 729,000 |
Derivative liability | 10,000 | 690,000 |
Recurring Fair Value Measurements | Balance | U.S. government-sponsored agencies | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 46,238,000 | 72,905,000 |
Recurring Fair Value Measurements | Balance | Mortgage-backed securities | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 168,804,000 | 162,724,000 |
Derivative asset | 64,000 | |
Derivative liability | 4,112,000 | 181,000 |
Recurring Fair Value Measurements | Balance | Municipal securities | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 187,480,000 | 178,448,000 |
Recurring Fair Value Measurements | Quoted Prices in Active markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Fair Value Measurements | ||
Derivative asset | 64,000 | |
Derivative liability | 4,112,000 | 181,000 |
Recurring Fair Value Measurements | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 402,522,000 | 414,077,000 |
Investment securities - trading | 6,489,000 | 5,881,000 |
Loans held for sale | 225,776,000 | |
Bank-owned life insurance | 33,213,000 | 32,978,000 |
Recurring Fair Value Measurements | Significant Other Observable Inputs (Level 2) | Rate Lock and Forward Loan Sales Commitments | ||
Fair Value Measurements | ||
Derivative asset | 27,154,000 | 18,353,000 |
Derivative liability | 3,918,000 | 1,587,000 |
Recurring Fair Value Measurements | Significant Other Observable Inputs (Level 2) | Interest Rate Lock Commitments | ||
Fair Value Measurements | ||
Derivative asset | 3,375,000 | 729,000 |
Derivative liability | 10,000 | 690,000 |
Recurring Fair Value Measurements | Significant Other Observable Inputs (Level 2) | U.S. government-sponsored agencies | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 46,238,000 | 72,905,000 |
Recurring Fair Value Measurements | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 168,804,000 | 162,724,000 |
Recurring Fair Value Measurements | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Fair Value Measurements | ||
Investment securities available-for-sale | 187,480,000 | 178,448,000 |
Nonrecurring Fair Value Measurements | ||
Fair Value Measurements | ||
Loans held for sale | $ 1,700,000 | $ 335,000 |
Fair Value Measurements- Carryi
Fair Value Measurements- Carrying Amount (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Financial liabilities: | ||
Demand deposits | $ 710,318,000 | $ 657,398,000 |
Other borrowed funds | 450,696,000 | 537,965,000 |
Nonrecurring Fair Value Measurements | ||
Financial assets: | ||
Loans held for sale | 1,700,000 | 335,000 |
Quoted Prices in Active markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 35,562,000 | 39,337,000 |
Accrued interest receivable | 10,586,000 | 10,633,000 |
Financial liabilities: | ||
Demand deposits | 710,318,000 | 657,398,000 |
Interest checking | 437,724,000 | 451,545,000 |
Money market and statement savings | 764,755,000 | 740,372,000 |
Accrued interest payable | 925,000 | 1,266,000 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Investment securities held-to-maturity and other investments | 21,624,000 | 20,970,000 |
Loans held for sale | 456,359,000 | 383,768,000 |
Loans receivable, net | 2,291,000 | 707,000 |
Financial liabilities: | ||
Certificates of deposit | 1,332,672,000 | 1,185,188,000 |
Other borrowed funds | 457,519,000 | 540,755,000 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Investment securities held-to-maturity and other investments | 3,308,000 | |
Loans receivable, net | 3,154,659,000 | 3,004,553,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 35,562,000 | 39,337,000 |
Investment securities held-to-maturity and other investments | 21,932,000 | 24,803,000 |
Loans held for sale | 228,895,000 | 383,768,000 |
Loans receivable, net | 3,123,887,000 | 3,024,587,000 |
Accrued interest receivable | 10,586,000 | 10,633,000 |
Financial liabilities: | ||
Demand deposits | 710,318,000 | 657,398,000 |
Interest checking | 437,724,000 | 451,545,000 |
Money market and statement savings | 764,755,000 | 740,372,000 |
Certificates of deposit | 1,332,009,000 | 1,183,456,000 |
Other borrowed funds | 450,696,000 | 537,965,000 |
Accrued interest payable | 925,000 | 1,266,000 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 35,562,000 | 39,337,000 |
Investment securities held-to-maturity and other investments | 21,624,000 | 24,278,000 |
Loans held for sale | 456,359,000 | 383,768,000 |
Loans receivable, net | 3,156,950,000 | 3,005,260,000 |
Accrued interest receivable | 10,586,000 | 10,633,000 |
Financial liabilities: | ||
Demand deposits | 710,318,000 | 657,398,000 |
Interest checking | 437,724,000 | 451,545,000 |
Money market and statement savings | 764,755,000 | 740,372,000 |
Certificates of deposit | 1,332,672,000 | 1,185,188,000 |
Other borrowed funds | 457,519,000 | 540,755,000 |
Accrued interest payable | $ 925,000 | $ 1,266,000 |