Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BSRR | ||
Entity Common Stock, Shares Outstanding | 13,676,849 | ||
Entity Registrant Name | SIERRA BANCORP | ||
Entity Central Index Key | 1130144 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $190 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $48,405 | $51,342 |
Interest-bearing deposits in banks | 1,690 | 26,664 |
Cash and cash equivalents | 50,095 | 78,006 |
Securities available-for-sale | 511,883 | 425,044 |
Loans held-for-sale | 105 | |
Loans and leases: | ||
Gross loans and leases | 970,653 | 803,242 |
Allowance for loan and lease losses | -11,248 | -11,677 |
Deferred loan and lease fees, net | 1,651 | 1,522 |
Net loans and leases | 961,056 | 793,087 |
Premises and equipment, net | 21,853 | 20,393 |
Foreclosed assets | 3,991 | 8,185 |
Goodwill | 6,908 | 5,544 |
Other intangible assets, net | 1,064 | |
Company owned life insurance | 42,989 | 39,424 |
Other assets | 37,481 | 40,461 |
Total Assets | 1,637,320 | 1,410,249 |
Deposits: | ||
Non-interest bearing | 390,897 | 365,997 |
Interest bearing | 975,798 | 808,182 |
Total deposits | 1,366,695 | 1,174,179 |
Repurchase agreements | 7,251 | 5,974 |
Short-term borrowings | 18,200 | |
Long-term borrowings | 6,000 | |
Subordinated debentures | 30,928 | 30,928 |
Other liabilities | 21,155 | 17,494 |
Total liabilities | 1,450,229 | 1,228,575 |
Commitments and contingent liabilities (Note 12) | ||
Shareholders' equity | ||
Serial Preferred stock, no par value; 10,000,000 shares authorized; none issued | ||
Common stock, no par value; 24,000,000 shares authorized; 13,689,181 and 14,217,199 shares issued and outstanding in 2014 and 2013 respectively | 64,153 | 65,780 |
Additional paid-in capital | 2,605 | 2,648 |
Retained earnings | 116,026 | 112,817 |
Accumulated other comprehensive income, net of taxes of $3,012 in 2014 and $300 in 2013 | 4,307 | 429 |
Total shareholders' equity | 187,091 | 181,674 |
Total liabilities and shareholders' equity | $1,637,320 | $1,410,249 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Serial Preferred stock, no par value | $0 | $0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, no par value | $0 | $0 |
Common stock, shares authorized | 24,000,000 | 24,000,000 |
Common stock, shares issued | 13,689,181 | 14,217,199 |
Common stock, shares outstanding | 13,689,181 | 14,217,199 |
Accumulated other comprehensive income, tax | $3,012 | $300 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and dividend income | |||
Loans and leases, including fees | $44,380 | $44,030 | $45,765 |
Taxable securities | 7,653 | 4,899 | 6,280 |
Tax-exempt securities | 2,936 | 2,737 | 2,703 |
Dividend income on securities | 90 | 17 | 84 |
Federal funds sold and other | 62 | 102 | 70 |
Total interest income | 55,121 | 51,785 | 54,902 |
Interest expense | |||
Deposits | 2,064 | 2,455 | 3,208 |
Short-term borrowings | 25 | 19 | 58 |
Long-term borrowings | 4 | 33 | 281 |
Subordinated debentures | 703 | 714 | 774 |
Total interest expense | 2,796 | 3,221 | 4,321 |
Net interest income | 52,325 | 48,564 | 50,581 |
Provision for loan and lease losses | 350 | 4,350 | 14,210 |
Net interest income after provision for loan and lease losses | 51,975 | 44,214 | 36,371 |
Non-interest income | |||
Service charges on deposits | 8,275 | 9,022 | 9,676 |
Gain on sale of loans | 3 | 129 | 183 |
Credit card fees | 451 | 462 | 390 |
Checkcard fees | 3,908 | 3,749 | 2,787 |
Net gains on sale of securities available-for-sale | 667 | 6 | 1,762 |
Increase in cash surrender value of life insurance | 1,278 | 1,787 | 1,420 |
Other income | 1,249 | 1,908 | 1,908 |
Total non-interest income | 15,831 | 17,063 | 18,126 |
Non-interest expense | |||
Salaries and employee benefits | 22,926 | 21,920 | 20,734 |
Occupancy and equipment | 6,344 | 6,274 | 6,381 |
Acquisition costs | 2,070 | ||
Other | 15,035 | 16,621 | 19,541 |
Total non-interest expense | 46,375 | 44,815 | 46,656 |
Income before income taxes | 21,431 | 16,462 | 7,841 |
Provision for income taxes | 6,191 | 3,093 | -344 |
Net income | $15,240 | $13,369 | $8,185 |
Earnings per share | |||
Basic | $1.09 | $0.94 | $0.58 |
Diluted | $1.08 | $0.94 | $0.58 |
Weighted average shares outstanding, basic | 14,001,958 | 14,155,927 | 14,103,805 |
Weighted average shares outstanding, diluted | 14,136,486 | 14,290,150 | 14,120,313 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $15,240 | $13,369 | $8,185 |
Unrealized gains on securities: | |||
Unrealized holding gain (loss) arising during period | 7,257 | -5,588 | 1,560 |
Reclassification adjustment for gain included in net income | -667 | -6 | -1,762 |
Other comprehensive income (loss), before tax | 6,590 | -5,594 | -202 |
Income tax (expense) benefit related to items of other comprehensive income | -2,712 | 2,303 | 74 |
Total other comprehensive income (loss), net of tax | 3,878 | -3,291 | -128 |
Comprehensive income | 19,118 | 10,078 | 8,057 |
Reclassification adjustment for gain on securities available-for-sale included in net income, tax | $274 | $2 | $725 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2011 | $168,564,000 | $64,321,000 | $2,221,000 | $98,174,000 | $3,848,000 |
Balance (in shares) at Dec. 31, 2011 | 14,101,609 | ||||
Net income | 8,185,000 | 8,185,000 | |||
Other comprehensive income, net of tax | -128,000 | -128,000 | |||
Reversal of cumulative effect of change in accounting principle | 154,000 | 154,000 | |||
Exercise of stock options and related tax benefit (in shares) | 5,350 | ||||
Exercise of stock options and related tax benefit | 15,000 | 63,000 | -48,000 | ||
Stock compensation costs | 487,000 | 487,000 | |||
Cash dividends | -3,385,000 | -3,385,000 | |||
Balance at Dec. 31, 2012 | 173,892,000 | 64,384,000 | 2,660,000 | 103,128,000 | 3,720,000 |
Balance (in shares) at Dec. 31, 2012 | 14,106,959 | ||||
Net income | 13,369,000 | 13,369,000 | |||
Other comprehensive income, net of tax | -3,291,000 | -3,291,000 | |||
Exercise of stock options and related tax benefit (in shares) | 110,240 | ||||
Exercise of stock options and related tax benefit | 1,116,000 | 1,396,000 | -280,000 | ||
Stock compensation costs | 268,000 | 268,000 | |||
Cash dividends | -3,680,000 | -3,680,000 | |||
Balance at Dec. 31, 2013 | 181,674,000 | 65,780,000 | 2,648,000 | 112,817,000 | 429,000 |
Balance (in shares) at Dec. 31, 2013 | 14,217,199 | ||||
Net income | 15,240,000 | 15,240,000 | |||
Other comprehensive income, net of tax | 3,878,000 | 3,878,000 | |||
Exercise of stock options and related tax benefit (in shares) | 95,330 | ||||
Exercise of stock options and related tax benefit | 1,076,000 | 1,300,000 | -224,000 | ||
Stock compensation costs | 181,000 | 181,000 | |||
Stock repurchase | -10,183,000 | -2,927,000 | -7,256,000 | ||
Stock repurchase (in shares) | 623,348 | -623,348 | |||
Cash dividends | -4,775,000 | -4,775,000 | |||
Balance at Dec. 31, 2014 | $187,091,000 | $64,153,000 | $2,605,000 | $116,026,000 | $4,307,000 |
Balance (in shares) at Dec. 31, 2014 | 13,689,181 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends, per share | $0.34 | $0.26 | $0.24 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $15,240 | $13,369 | $8,185 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on investment of securities | -667 | -6 | -1,762 |
Gain on sales of loans | -3 | -129 | -183 |
(Gain) loss on disposal of fixed assets | -4 | -15 | 30 |
(Gain) loss on sale of foreclosed assets | -2,253 | 223 | 864 |
Writedown of foreclosed assets | 452 | 730 | 3,173 |
Share-based compensation expense | 181 | 268 | 487 |
Provision for loan losses | 350 | 4,350 | 14,210 |
Depreciation and amortization | 2,107 | 2,131 | 2,437 |
Net amortization on securities premiums and discounts | 6,607 | 8,177 | 8,500 |
Decrease (increase) in unearned net loan fees | 129 | 366 | -535 |
Increase in cash surrender value of life insurance policies | -1,475 | -1,417 | -350 |
Proceeds from sales of loans | 108 | 5,459 | 8,191 |
Originations of loans held for sale | -5,225 | -6,864 | |
Decrease in interest receivable and other assets | 5,884 | 2,225 | 610 |
Increase in other liabilities | 3,453 | 1,514 | 1,646 |
Net (increase) decrease in FHLB stock, at cost | -190 | 438 | 670 |
Deferred income tax (benefit) provision | -1,151 | 2,360 | -564 |
Excess tax benefit from equity based compensation | -224 | -280 | -48 |
Net cash provided by operating activities | 28,544 | 34,538 | 38,697 |
Cash flows from investing activities: | |||
Maturities of securities available for sale | 1,620 | 1,724 | 1,120 |
Proceeds from sales/calls of securities available for sale | 29,452 | 4,135 | 63,776 |
Purchases of securities available for sale | -150,515 | -160,251 | -150,305 |
Principal paydowns on securities available for sale | 77,442 | 95,772 | 104,752 |
(Increase) decrease in loans receivable, net | -107,734 | 64,868 | -163,789 |
Purchases of premises and equipment, net | -2,379 | -667 | -3,411 |
Proceeds from sales of foreclosed assets | 6,854 | 15,023 | 15,538 |
Proceeds from sales of fixed assets | 4 | ||
Cash acquired in bank acquisition | 514 | ||
Net cash (used in) provided by investing activities | -144,742 | 20,604 | -132,319 |
Cash flows from financing activities: | |||
Increase in deposits | 84,244 | 145 | 87,766 |
Increase (decrease) in borrowed funds | 16,200 | -41,650 | 9,530 |
Increase (decrease) in repurchase agreements | 1,277 | 4,555 | -1,618 |
Cash dividends paid | -4,775 | -3,680 | -3,385 |
Repurchases of common stock | -10,183 | ||
Stock options exercised | 1,300 | 1,396 | 63 |
Excess tax provision from equity based compensation | 224 | 280 | 48 |
Net cash provided by (used in) financing activities | 88,287 | -38,954 | 92,404 |
(Decrease) increase in cash and due from banks | -27,911 | 16,188 | -1,218 |
Cash and cash equivalents, beginning of year | 78,006 | 61,818 | 63,036 |
Cash and cash equivalents, end of year | 50,095 | 78,006 | 61,818 |
Cash paid during the year for: | |||
Interest | 2,845 | 3,340 | 4,531 |
Income taxes | 1,800 | ||
Non-cash investing activities | |||
Real estate acquired through foreclosure | 842 | 4,990 | 23,965 |
Change in unrealized net (losses) gains on Investment securities available-for-sale | 6,590 | -5,594 | -202 |
Assets acquired (liabilities assumed) in bank acquisition: | |||
Cash and cash equivalents | 15,852 | ||
Securities | 44,187 | ||
Federal Home Loan Bank stock | 860 | ||
Loans | 61,573 | ||
Premises and equipment | 1,188 | ||
Core deposit intangibles | 1,075 | ||
Goodwill | 1,364 | ||
Other assets | 5,719 | ||
Deposits | -108,272 | ||
Federal Home Loan Bank advances | -8,000 | ||
Other liabilities | ($208) |
THE_BUSINESS_OF_SIERRA_BANCORP
THE BUSINESS OF SIERRA BANCORP | 12 Months Ended | ||
Dec. 31, 2014 | |||
THE BUSINESS OF SIERRA BANCORP [Abstract] | |||
THE BUSINESS OF SIERRA BANCORP | 1 | THE BUSINESS OF SIERRA BANCORP | |
Sierra Bancorp (the “Company”) is a California corporation registered as a bank holding company under the Bank Holding Company Act of 1956, as amended, and is headquartered in Porterville, California. The Company was incorporated in November 2000 and acquired all of the outstanding shares of Bank of the Sierra (the “Bank”) in August 2001. The Company's principal subsidiary is the Bank, and the Company exists primarily for the purpose of holding the stock of the Bank and of such other subsidiaries it may acquire or establish. The Company's only other direct subsidiaries are Sierra Statutory Trust II, which was formed in March 2004 solely to facilitate the issuance of capital trust pass-through securities, and Sierra Capital Trust III, which was formed in June 2006 for the same purpose. | |||
The Bank operates twenty-eight full service branch offices, an online branch, a real estate industries group, an agricultural credit division, and an SBA lending unit. The Bank's deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable legal limits. The Bank maintains a diversified loan portfolio comprised of agricultural, commercial, consumer, real estate construction and mortgage loans. Loans are made primarily within the market area of the South Central San Joaquin Valley of California, specifically, Tulare, Fresno, Kern, Kings, and Madera counties, however, the Bank recently expanded into the Southern California corridor stretching from Santa Paula to Santa Clarita in the counties of Ventura and Los Angeles. These areas have diverse economies with principal industries being agriculture, real estate and light manufacturing. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Consolidation and Basis of Presentation | |||||||||||
The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly-owned subsidiary, Bank of the Sierra. All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years' balances to conform to classifications used in 2014. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and prevailing practices within the banking industry. | |||||||||||
In accordance with U.S. GAAP, the Company's investments in Sierra Statutory Trust II and Sierra Capital Trust III are not consolidated and are accounted for under the equity method and included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the trusts are reflected on the Company's consolidated balance sheet. | |||||||||||
Use of Estimates | |||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. | |||||||||||
Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan and lease losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and lease losses and other real estate, management obtains independent appraisals for significant properties, evaluates the overall loan portfolio characteristics and delinquencies and monitors economic conditions. | |||||||||||
Cash Flows | |||||||||||
For purposes of reporting cash flows, cash and cash equivalents include cash and deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and fed funds purchased and repurchase agreements. | |||||||||||
Securities | |||||||||||
Debt securities may be classified as held to maturity and carried at amortized cost when management has the positive ability and intent to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Securities available for sale are carried at fair value with unrealized holding gains and losses reported in other comprehensive income, net of tax. | |||||||||||
Interest income includes amortization of purchase premium or discount. Premiums or discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are record on the trade date and determined using the specific identification method. | |||||||||||
Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. Although the Company currently has the intent and the ability to hold the securities in its investment portfolio to maturity, the securities are all marketable and are currently classified as “available for sale” to allow maximum flexibility with regard to interest rate risk and liquidity management. | |||||||||||
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of the impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |||||||||||
Loans Held for Sale | |||||||||||
The Company periodically originates loans intended to be sold on the secondary market. Loans originated and intended for sale in the secondary market are carried at cost which approximates fair value since these loans are typically sold shortly after origination. The loan's cost basis includes unearned deferred fees and costs, and premiums and discounts. If loans held for sale remain on our books for an extended period of time the fair value of those loans is determined using quoted secondary market prices. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. | |||||||||||
Loans held for sale by the Company consist entirely of residential real estate loans. Loans classified as held for sale are disclosed in Note 4 of these Consolidated Financial Statements. | |||||||||||
Gains and losses on sales of loans are recognized at the time of sale and are calculated based on the difference between the selling price and the allocated book value of loans sold. Book value allocations are determined in accordance with U.S. GAAP. Any inherent risk of loss on loans sold is transferred to the buyer at the date of sale. | |||||||||||
The Company has issued various representations and warranties associated with the sale of loans. These representations and warranties may require the Company to repurchase loans with underwriting deficiencies as defined per the applicable sales agreements and certain past due loans within 90 days of the sale. The Company did not experience losses during the years ended December 31, 2014, 2013 or 2012 regarding these representations and warranties. | |||||||||||
Loans and Leases (Financing Receivables) | |||||||||||
Our credit quality classifications of Loans and Leases include Pass, Special Mention, Substandard and Impaired. These classifications are defined in Note 4 (Loans and Leases) to our consolidated financial statements. | |||||||||||
Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, purchase premiums and discounts, write-downs, and an allowance for loan and lease losses. Loan and lease origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized in interest income as an adjustment to yield of the related loans and leases over the contractual life of the loan using both the effective interest and straight line methods without anticipating prepayments. | |||||||||||
Interest income for all performing loans, regardless of classification (Pass, Special Mention, Substandard and Impaired), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. | |||||||||||
Generally, the Company places a loans or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan's status changed. For loans with an interest reserve, i.e., where loan proceeds are advanced to the borrower to make interest payments, all interest recognized from the inception of the loan is reversed when the loan is placed on non-accrual. Once a loan is on non-accrual status subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Generally, loans and leases are not restored to accrual status until the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. | |||||||||||
Impaired loans are classified as either nonaccrual or accrual, depending on individual circumstances regarding the collectability of interest and principal according to the contractual terms. | |||||||||||
Purchased Credit Impaired Loans | |||||||||||
The Company purchases individual loans and groups of loans, some of which show evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, since there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. | |||||||||||
Such PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics. The Company estimates the amount and timing of expected cash flows for the loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan's or pool's contractual principal and interest over expected cash flows in not recorded (nonaccretable difference). | |||||||||||
Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan and lease losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income | |||||||||||
Loans Modified in a Troubled Debt Restructuring | |||||||||||
Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when due to a borrower's financial difficulties the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. | |||||||||||
A TDR is generally considered to be in default when it appears likely that the customer will not be able to repay all principal and interest pursuant to the terms of the restructured agreement. | |||||||||||
Allowance for Loan and Lease Losses | |||||||||||
The allowance for loan and lease losses is maintained at a level which, in management's judgment, is adequate to absorb loan and lease losses inherent in the loan and lease portfolio. The allowance for loan and lease losses is increased by a provision for loan and lease losses, which is charged to expense, and reduced by principal charge-offs, net of recoveries. The amount of the allowance is based on management's evaluation of the collectability of the loan and lease portfolio, changes in its risk profile, credit concentrations, historical trends, and economic conditions. This evaluation also considers the balance of impaired loans and leases. A loan or lease is impaired when it is probable that the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan or lease agreement. The impairment on certain individually identified loans or leases is measured based on the present value of expected future cash flows discounted at the original effective interest rate of the loan or lease. As a practical expedient, impairment may be measured based on the loan's or lease's observable market price or the fair value of collateral if the loan or lease is collateral dependent. The amount of impairment, if any, is recorded through the provision for loan and lease losses and is added to the allowance for loan and lease losses, with any changes over time recognized as additional bad debt expense in our provision for loan losses. Impaired loans with homogenous characteristics, such as one-to-four family residential mortgages and consumer installment loans, may be subjected to a collective evaluation for impairment, considering delinquency and repossession statistics, historical loss experience, and other factors. | |||||||||||
General reserves cover non-impaired loans and are based on historical net loss rates for each portfolio segment by call report code, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment's historical loss experience. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments; changes in nature and volume of the portfolio; changes in the experience, ability and depth of lending management and staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in quality of the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit; and the effect of the other external factors such as competition and legal and regulatory requirements. | |||||||||||
Most of the Company's business activity is with customers located in California within the Southern Central San Joaquin Valley and the corridor stretching between Santa Paula and Santa Clarita, therefore the Company's exposure to credit risk is significantly affected by changes in the economy in that region. The Company considers this concentration of credit risk when assessing and assigning qualitative factors in the allowance for loan losses. Portfolio segments identified by the Company include Direct Financing leases, Agricultural, Commercial and Industrial, Real Estate, Small Business Administration, and Consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer related loans; and credit scores, debt-to-income ratios, collateral type and loan-to-value ratios for consumer related loans. | |||||||||||
Though management believes the allowance for loan and lease losses to be adequate, ultimate losses may vary from their estimates. However, estimates are reviewed periodically, and as adjustments become necessary they are reported in earnings during the periods they become known. In addition, the FDIC and the California Department of Business Oversight, as an integral part of their examination processes, review the allowance for loan and lease losses. These agencies may require additions to the allowance for loan and lease losses based on their judgment about information available at the time of their examinations. | |||||||||||
Reserve for Off-Balance Sheet Commitments | |||||||||||
In addition to the exposure to credit loss from outstanding loans, the Company is also exposed to credit loss from certain off-balance sheet commitments such as unused commitments from revolving lines of credit, mortgage warehouse lines of credit, unused commitments on construction loans and commercial and standby letters of credit. Because the available funds have not yet been disbursed on these commitments the estimated losses are not included in the calculation of ALLL. The reserve for off-balance sheet commitments is an estimated loss contingency which is included in other liabilities on the Consolidated Balance Sheets. The adjustments to the reserve for off-balance sheet commitments are reported as a noninterest expense. This reserve is for estimated losses that could occur when the Company is contractually obligated to make a payment under these instruments and must seek repayment from a party that may not be as financially sound in the current period as it was when the commitment was originally made. | |||||||||||
Premises and Equipment | |||||||||||
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of premises range between twenty-five to thirty-nine years. The useful lives of furniture, fixtures and equipment range between three to twenty years. Leasehold improvements are amortized over the life of the asset or the term of the related lease, whichever is shorter. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. | |||||||||||
Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. | |||||||||||
Foreclosed Assets | |||||||||||
Foreclosed assets include real estate and other property acquired in full or partial settlement of loan obligations. Upon acquisition, any excess of the recorded investment in the loan balance over the appraised fair market value, net of estimated selling costs, is charged against the allowance for loan and lease losses. A valuation allowance for losses on foreclosed assets is maintained to provide for temporary declines in value. The allowance is established through a provision for losses on foreclosed assets which is included in other non-interest expense. Subsequent gains or losses on sales or write-downs resulting from permanent impairments are recorded in other non-interest income or expense as incurred. Operating costs after acquisition are expensed. | |||||||||||
Goodwill and Other Intangible Assets | |||||||||||
The Company acquired Sierra National Bank in 2000. Goodwill resulting from business combinations prior to January 1, 2009 represents the amount by which the purchase price exceeded the fair value of the net assets. | |||||||||||
The Company acquired Santa Clara Valley Bank in 2014. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. | |||||||||||
Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist which indicate that an impairment test should be performed. The Company selected December 31, 2014 as the date to perform the annual impairment test for 2014. Goodwill is the only intangible asset with an indefinite life on our balance sheet. There was no impairment recognized for the years ended December 31, 2014, 2013, and 2012. | |||||||||||
Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The Company's other intangible assets consist solely of core deposit intangible assets arising from the acquisition of Santa Clara Valley Bank, which are being amortized on a straight line basis over eight years. | |||||||||||
Loan Commitments and Related Financial Instruments | |||||||||||
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Details regarding these commitments and financial instruments are discussed in detail in Note 12 to our consolidated financial statements. | |||||||||||
Income Taxes | |||||||||||
The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity's proportionate share of the consolidated provision for income taxes. | |||||||||||
Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |||||||||||
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have determined that as of December 31, 2014 all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the financial statements. | |||||||||||
The Company recognizes interest and penalties related to uncertain tax positions as part of income tax expense. | |||||||||||
Salary Continuation Agreements and Directors' Retirement Plan | |||||||||||
The Company has entered into agreements to provide members of the Board of Directors and certain key executives, or their designated beneficiaries, with annual benefits for up to fifteen years after retirement or death. The Company accrues for these future benefits from the effective date of the plan until the director's or executive's expected retirement date in a systematic and rational manner. At the consolidated balance sheet date, the amount of accrued benefits equals the then present value of the benefits expected to be provided to the director or employee, any beneficiaries, and covered dependents in exchange for the director's or employee's services to that date. | |||||||||||
Comprehensive Income | |||||||||||
Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of an adjustment for the effects of realized gains and losses and any applicable tax. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company's available for sale securities are included in other comprehensive income after adjusting for the effects of realized gains and losses. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. | |||||||||||
Stock-Based Compensation | |||||||||||
At December 31, 2014, the Company had one stock-based compensation plan, the Sierra Bancorp 2007 Stock Incentive Plan (the “2007 Plan”), which was adopted by the Company's Board of Directors on March 15, 2007 and approved by the Company's shareholders on May 23, 2007. The 2007 Plan originally covered 1,500,000 shares of the Company's authorized but unissued common stock, subject to adjustment for stock splits and dividends, and provides for the issuance of both “incentive” and “nonqualified” stock options to salaried officers and employees, and of “nonqualified” stock options to non-employee directors. The 2007 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants. We have not issued, nor do we currently have plans to issue, restricted stock awards. The 2007 plan supersedes the Company's 1998 Stock Option plan (“1998 Plan”) which was terminated. The outstanding options issued under the 1998 Plan were not affected by this termination. | |||||||||||
Compensation cost and director's expense is recognized for stock options issued to employees and directors and is recognized over the required service period, generally defined as the vesting period. The Company is using the Black-Scholes model to value stock options. The “multiple option” approach is used to allocate the resulting valuation to actual expense for current period. Expected volatility is based on historical volatility of the Company's common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of each option is estimated on the date of grant using the following assumptions: | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 (1) | 2012 | |||||||||
Dividend yield | 2.08 | % | N/A | 2.35 | % | ||||||
Expected Volatility | 25.01 | % | N/A | 56.71 | % | ||||||
Risk-free interest rate | 0.01 | % | N/A | 0.43 | % | ||||||
Expected option life | 4.0 years | N/A | 5.5 years | ||||||||
-1 | No stock options were issued in 2013. | ||||||||||
Recent Accounting Pronouncements | |||||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued ASU 2013-02, Comprehensive Income (Topic 220) which amended existing guidance related to reporting amounts reclassified out of accumulated other comprehensive income. These amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. These amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income, by component. In addition, an entity is required to present, either on the face of the statement where net income is presented on in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts. For public entities, this update became effective prospectively for reporting periods beginning after December 15, 2012. We adopted ASU 2013-2 commencing with our report on Form 10-Q filed for the first quarter of 2013. | |||||||||||
In January 2014, the FASB issued ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects, to provide additional flexibility with regard to accounting for investments in qualified affordable housing projects. ASU 2014-01 modifies the conditions that must be met to present the pretax impact and related tax benefits of such investments as a component of income taxes (“net” within income tax expense), to enable more investors to elect to use a “net” presentation for those investments. Investors that do not qualify for “net” presentation under the new guidance will continue to account for such investments under the equity method or cost method, which results in losses recognized in pretax income and tax benefits recognized in income taxes (“gross” presentation of investment results). For investments that qualify for the “net” presentation of investment performance, ASU 2014-01 introduces a “proportional amortization method” that can be elected to amortize the investment basis. If elected, the method is required for all eligible investments in qualified affordable housing projects. ASU 2014-01 also requires enhanced recurring disclosures for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. It is effective for interim and annual periods beginning after December 15, 2014, and early adoption is permitted. The Company currently expects to adopt ASU 2014-01 as of the first quarter of 2015. We will likely continue to account for our low-income housing tax credit investments using the equity method subsequent to our adoption of ASU 2014-01 and thus do not expect any impact on our income statement or balance sheet, but our disclosures with regard to low-income housing tax credit investments will be updated to reflect the new requirements. | |||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to resolve diversity in practice with respect to a creditor's reclassification of a collateralized consumer mortgage loan to other real estate owned (OREO). Current US GAAP requires a loan to be reclassified to OREO upon a troubled debt restructuring that is “in substance a repossession or foreclosure”, where the creditor receives “physical possession” of the debtor's assets regardless of whether formal foreclosure proceedings take place. The terms “in substance a repossession or foreclosure” and “physical possession” are not defined in US GAAP; therefore, questions have arisen about when a creditor should reclassify a collateralized mortgage loan to OREO. ASU 2014-04 requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or when the borrower voluntarily conveys all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 is effective for public business entities for interim and annual periods beginning after December 15, 2014. It will be adopted by the Company for the first quarter of 2015, and we do not expect any impact upon our financial statements or operations upon adoption. | |||||||||||
In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is the result of a joint project initiated by the FASB and the International Accounting Standards Board (IASB) to clarify the principles for recognizing revenue, and to develop a common revenue standard and disclosures for U.S. and international accounting standards that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosure requirements; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required with regard to contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently evaluating the potential effects of this guidance on its financial statements and disclosures. | |||||||||||
In June 2014, the FASB issued ASU 2014-12 which amended existing guidance related to the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. These amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. It will be adopted by the Company for the first quarter of 2016, and we do not expect any impact upon our financial statements or operations upon adoption. | |||||||||||
In August 2014, the FASB issued ASU 2014-14 which amended existing guidance related to the classification of certain government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA, upon foreclosure. It requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the following conditions are met: 1) The loan has a government guarantee that is not separable from the loan before foreclosure; 2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and 3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU 2014-14 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. It will be adopted by the Company for the first quarter of 2015, and we do not expect any impact upon our financial statements or operations upon adoption. |
SECURITIES_AVAILABLEFORSALE
SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SECURITIES AVAILABLE-FOR-SALE [Abstract] | |||||||||||||||||||||||||
SECURITIES AVAILABLE-FOR-SALE | 3 | SECURITIES AVAILABLE-FOR-SALE | |||||||||||||||||||||||
The amortized cost and fair value of the securities available-for-sale are as follows (dollars in thousands): | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||
US Government Agencies | $ | 26,959 | $ | 334 | $ | (23 | ) | $ | 27,270 | ||||||||||||||||
Mortgage-backed securities | 378,339 | 4,299 | (1,196 | ) | 381,442 | ||||||||||||||||||||
State and political subdivisions | 98,056 | 3,093 | (200 | ) | 100,949 | ||||||||||||||||||||
Equity securities | 1,210 | 1,012 | - | 2,222 | |||||||||||||||||||||
Total securities | $ | 504,564 | $ | 8,738 | $ | (1,419 | ) | $ | 511,883 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||
US Government Agencies | $ | 5,395 | $ | 18 | $ | (109 | ) | $ | 5,304 | ||||||||||||||||
Mortgage-backed securites | 320,223 | 3,269 | (2,771 | ) | 320,721 | ||||||||||||||||||||
State and political subdivisions | 97,361 | 1,723 | (2,521 | ) | 96,563 | ||||||||||||||||||||
Equity securities | 1,336 | 1,120 | - | 2,456 | |||||||||||||||||||||
Total securities | $ | 424,315 | $ | 6,130 | $ | (5,401 | ) | $ | 425,044 | ||||||||||||||||
For the years ended December 31, 2014, 2013, and 2012, proceeds from sales of securities available-for-sale were $26.7 million, $700 thousand, and $56.4 million, respectively. Gains and losses on the sale of investment securities are recorded on the trade date and are determined using the specific identification method. | |||||||||||||||||||||||||
Gross gains and losses from the sales and calls of securities for the years ended were as follows (dollars in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Gross gains on sales and calls of securities | $ | 739 | $ | 6 | $ | 2,059 | |||||||||||||||||||
Gross losses on sales and calls of securities | (72 | ) | - | (297 | ) | ||||||||||||||||||||
Net gains on sales and calls of securities | $ | 667 | $ | 6 | $ | 1,762 | |||||||||||||||||||
At December 31, 2014 and 2013, the Company had 134 and 197 securities with unrealized gross losses, respectively. Information pertaining to these securities aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands): | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Less than twelve months | Twelve months or longer | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||
Losses | Fair Value | Losses | Fair Value | ||||||||||||||||||||||
US Government Agencies | $ | (23 | ) | $ | 3,485 | $ | - | $ | - | ||||||||||||||||
Mortgage-backed securities | (564 | ) | 84,004 | (632 | ) | 51,982 | |||||||||||||||||||
State and political subdivisions | (31 | ) | 7,738 | (169 | ) | 9,045 | |||||||||||||||||||
Equity securities | - | - | - | - | |||||||||||||||||||||
Total | $ | (618 | ) | $ | 95,227 | $ | (801 | ) | $ | 61,027 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less than twelve months | Twelve months or longer | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||
Losses | Fair Value | Losses | Fair Value | ||||||||||||||||||||||
US Government Agencies | $ | (92 | ) | $ | 1,913 | $ | (17 | ) | $ | 1,920 | |||||||||||||||
Mortgage-backed securities | (642 | ) | 21,747 | (2,129 | ) | 124,317 | |||||||||||||||||||
State and political subdivisions | (461 | ) | 6,799 | (2,060 | ) | 38,083 | |||||||||||||||||||
Equity securities | - | - | - | - | |||||||||||||||||||||
Total | $ | (1,195 | ) | $ | 30,459 | $ | (4,206 | ) | $ | 164,320 | |||||||||||||||
The Company has reviewed all sectors and securities in the portfolio for impairment. During the year ended December 31, 2014 the Company realized gains through earnings from the sale of 59 debt securities for $502,000 and one equity position for $238,000. The securities were sold with seven other debt securities, for which a $72 thousand loss was realized, to manage the various risks in the portfolio. During the year ended December 31, 2013, the Company realized slight gains and no losses from the sale of three debt securities which were sold to improve the credit quality of the portfolio by minimizing securities on our Municipal Bond Watch List. | |||||||||||||||||||||||||
The Company has concluded as of December 31, 2014 that all remaining securities, currently in an unrealized loss position, are not other-than-temporarily-impaired. This assessment was based on the following factors: 1) the Company has the ability to hold the security, 2) the Company does not intend to sell the security, 3) the Company does not anticipate it will be required to sell the security before recovery, 4) and the Company expects to eventually recover the entire amortized cost basis of the security. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available-for-sale at December 31, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without penalties. | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Maturing within one year | $ | 686 | $ | 694 | |||||||||||||||||||||
Maturing after one year through five years | 222,081 | 225,415 | |||||||||||||||||||||||
Maturing after five years through ten years | 97,949 | 99,583 | |||||||||||||||||||||||
Maturing after ten years | 54,531 | 55,705 | |||||||||||||||||||||||
Securities not due at a single maturity date: | |||||||||||||||||||||||||
U.S Government agencies collateralized by mortgage obligations | 128,107 | 128,264 | |||||||||||||||||||||||
Other securities | 1,210 | 2,222 | |||||||||||||||||||||||
$ | 504,564 | $ | 511,883 | ||||||||||||||||||||||
Securities available-for-sale with amortized costs totaling $137,160,000 and estimated fair values totaling $140,611,000 were pledged to secure other contractual obligations and short-term borrowing arrangements at December 31, 2014 (see Note 9). | |||||||||||||||||||||||||
Securities available-for-sale with amortized costs totaling $162,393,000 and estimated fair values totaling $164,390,000 were pledged to secure public deposits, other contractual obligations and short-term borrowing arrangements at December 31, 2013 (see Note 9). | |||||||||||||||||||||||||
At December 31, 2014, the Company's investment portfolio included securities issued by 268 different government municipalities and agencies located within 27 states with a fair value of $98.1 million. The largest exposure to any single municipality or agency was a $3.8 million (fair value) bond issued for water utility improvements by the Arizona State Water Infrastructure Finance Authority, to be repaid by future water revenue. | |||||||||||||||||||||||||
The Company's investments in bonds issued by states, municipalities and political subdivisions are evaluated in accordance with Supervision and Regulation Letter 12-15 (SR 12-15) issued by the Board of Governors of the Federal Reserve System, “Investing in Securities without Reliance on Nationally Recognized Statistical Rating Organization Ratings”, and other regulatory guidance. Credit ratings are considered in our analysis only as a guide to the historical default rate associated with similarly-rated bonds. There have been no significant differences in our internal analyses compared with the ratings assigned by the third party credit rating agencies. | |||||||||||||||||||||||||
The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company's investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations (dollars in thousands): | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
General obligation bonds | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||
State of Issuance: | |||||||||||||||||||||||||
California | $ | 20,078 | $ | 21,288 | $ | 20,638 | $ | 21,272 | |||||||||||||||||
Texas | 14,489 | 14,675 | 11,340 | 11,024 | |||||||||||||||||||||
Illinois | 8,272 | 8,394 | 8,965 | 8,702 | |||||||||||||||||||||
Ohio | 7,456 | 7,555 | 7,659 | 7,485 | |||||||||||||||||||||
Washington | 5,966 | 6,126 | 5,487 | 5,340 | |||||||||||||||||||||
Arizona | 2,070 | 2,156 | 2,100 | 2,050 | |||||||||||||||||||||
Other (20 states) | 20,139 | 20,660 | 20,666 | 20,429 | |||||||||||||||||||||
Total General Obligation Bonds | 78,470 | 80,854 | 76,855 | 76,302 | |||||||||||||||||||||
Revenue bonds | |||||||||||||||||||||||||
State of Issuance: | |||||||||||||||||||||||||
Arizona | 3,710 | 3,777 | 4,700 | 4,341 | |||||||||||||||||||||
Texas | 3,273 | 3,387 | 2,762 | 2,719 | |||||||||||||||||||||
California | 2,174 | 2,233 | 2,519 | 2,579 | |||||||||||||||||||||
Washington | 1,167 | 1,197 | 1,170 | 1,211 | |||||||||||||||||||||
Ohio | 321 | 332 | 324 | 339 | |||||||||||||||||||||
Other (8 states) | 8,941 | 9,169 | 6,758 | 6,742 | |||||||||||||||||||||
Total Revenue Bonds | 19,586 | 20,095 | 18,233 | 17,931 | |||||||||||||||||||||
Certificates of participation | - | - | 2,273 | 2,330 | |||||||||||||||||||||
Total Obligations of States and Political Subdivisions | $ | 98,056 | $ | 100,949 | $ | 97,361 | $ | 96,563 | |||||||||||||||||
Revenue bonds | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||
Revenue Source: | |||||||||||||||||||||||||
Water | $ | 7,100 | $ | 7,278 | $ | 7,409 | $ | 7,144 | |||||||||||||||||
College & University | 2,723 | 2,834 | 2,203 | 2,187 | |||||||||||||||||||||
Sales Tax | 2,361 | 2,405 | 1,888 | 1,895 | |||||||||||||||||||||
Electric & Power | 1,880 | 1,914 | 1,673 | 1,688 | |||||||||||||||||||||
Lease | 1,356 | 1,362 | 1,155 | 1,063 | |||||||||||||||||||||
Other (9 sources) | 4,166 | 4,302 | 3,905 | 3,954 | |||||||||||||||||||||
Total Revenue Bonds | $ | 19,586 | $ | 20,095 | $ | 18,233 | $ | 17,931 |
LOANS_AND_LEASES
LOANS AND LEASES | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
LOANS AND LEASES [Abstract] | |||||||||||||||||||||||||||||
LOANS AND LEASES | 4 | LOANS AND LEASES | |||||||||||||||||||||||||||
The composition of the loan and lease portfolio is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Secured by residential, commercial and professional office properties, including construction and development | $ | 370,639 | $ | 318,383 | |||||||||||||||||||||||||
Secured by residential properties | 188,552 | 150,952 | |||||||||||||||||||||||||||
Secured by farm land | 145,039 | 108,504 | |||||||||||||||||||||||||||
Total real estate loans | 704,230 | 577,839 | |||||||||||||||||||||||||||
Agricultural | 27,746 | 25,180 | |||||||||||||||||||||||||||
Commercial and industrial | 113,771 | 103,262 | |||||||||||||||||||||||||||
Mortgage warehouse lines | 106,021 | 73,425 | |||||||||||||||||||||||||||
Consumer | 18,885 | 23,536 | |||||||||||||||||||||||||||
Total loans | 970,653 | 803,242 | |||||||||||||||||||||||||||
Deferred loan and lease origination cost, net | 1,651 | 1,522 | |||||||||||||||||||||||||||
Allowance for loan and lease losses | (11,248 | ) | (11,677 | ) | |||||||||||||||||||||||||
Loans, net | $ | 961,056 | $ | 793,087 | |||||||||||||||||||||||||
The Company monitors the credit quality of loans on a continuous basis using the regulatory and accounting classifications of pass, special mention, substandard and impaired to characterize and qualify the associated credit risk. Loans classified as “loss” are immediately charged-off. The Company uses the following definitions of risk classifications: | |||||||||||||||||||||||||||||
Pass – Loans listed as pass include larger non-homogeneous loans not meeting the risk rating definitions below and smaller, homogeneous loans not assessed on an individual basis. | |||||||||||||||||||||||||||||
Special Mention – Loans classified as special mention have the potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position and some future date. | |||||||||||||||||||||||||||||
Substandard – Loans classified as substandard are those loans with clear and well-defined weaknesses such as a highly leveraged position, unfavorable financial operating results and/or trends, or uncertain repayment sources or poor financial condition, which may jeopardize ultimate recoverability of the debt. | |||||||||||||||||||||||||||||
Impaired – A loan is considered impaired, when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as troubled debt restructurings are considered impaired. | |||||||||||||||||||||||||||||
Credit quality classifications as of December 31, 2014 were as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Impaired | Total | |||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | 5,858 | $ | - | $ | - | $ | - | $ | 5,858 | |||||||||||||||||||
Other Construction/Land | 15,238 | 247 | - | 4,423 | 19,908 | ||||||||||||||||||||||||
1-4 family - closed-end | 105,398 | 833 | 918 | 7,110 | 114,259 | ||||||||||||||||||||||||
Equity Lines | 46,819 | 294 | 1,237 | 1,367 | 49,717 | ||||||||||||||||||||||||
Multi-family residential | 18,127 | 420 | - | 171 | 18,718 | ||||||||||||||||||||||||
Commercial real estate owner occupied | 191,495 | 18,694 | 3,845 | 4,620 | 218,654 | ||||||||||||||||||||||||
Commercial real estate Non-owner occupied | 114,317 | 4,250 | 631 | 12,879 | 132,077 | ||||||||||||||||||||||||
Farmland | 142,295 | 1,950 | 744 | 50 | 145,039 | ||||||||||||||||||||||||
Total Real Estate | 639,547 | 26,688 | 7,375 | 30,620 | 704,230 | ||||||||||||||||||||||||
Agricultural | 27,215 | 531 | - | - | 27,746 | ||||||||||||||||||||||||
Commercial and Industrial | 108,469 | 1,529 | 857 | 2,916 | 113,771 | ||||||||||||||||||||||||
Mortgage warehouse lines | 106,021 | - | - | - | 106,021 | ||||||||||||||||||||||||
Consumer loans | 15,752 | 222 | 23 | 2,888 | 18,885 | ||||||||||||||||||||||||
Total Gross Loans and Leases | $ | 897,004 | $ | 28,970 | $ | 8,255 | $ | 36,424 | $ | 970,653 | |||||||||||||||||||
Credit quality classifications as of December 31, 2013 were as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Impaired | Total | |||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | 1,720 | $ | - | $ | - | $ | - | $ | 1,720 | |||||||||||||||||||
Other Construction/Land | 18,243 | 334 | 203 | 6,751 | 25,531 | ||||||||||||||||||||||||
1-4 family - closed-end | 67,051 | 1,305 | 770 | 17,898 | 87,024 | ||||||||||||||||||||||||
Equity Lines | 51,019 | 254 | 1,429 | 1,021 | 53,723 | ||||||||||||||||||||||||
Multi-family residential | 8,059 | 426 | - | - | 8,485 | ||||||||||||||||||||||||
Commercial real estate owner occupied | 158,155 | 17,033 | 3,261 | 7,563 | 186,012 | ||||||||||||||||||||||||
Commercial real estate Non-owner occupied | 89,475 | 3,630 | 240 | 13,495 | 106,840 | ||||||||||||||||||||||||
Farmland | 105,623 | 1,780 | 819 | 282 | 108,504 | ||||||||||||||||||||||||
Total Real Estate | 499,345 | 24,762 | 6,722 | 47,010 | 577,839 | ||||||||||||||||||||||||
Agricultural | 24,178 | 532 | - | 470 | 25,180 | ||||||||||||||||||||||||
Commercial and Industrial | 93,224 | 3,358 | 1,236 | 5,444 | 103,262 | ||||||||||||||||||||||||
Mortgage warehouse lines | 73,425 | - | - | - | 73,425 | ||||||||||||||||||||||||
Consumer loans | 19,387 | 478 | 208 | 3,463 | 23,536 | ||||||||||||||||||||||||
Total Gross Loans and Leases | $ | 709,559 | $ | 29,130 | $ | 8,166 | $ | 56,387 | $ | 803,242 | |||||||||||||||||||
Loans may or may not be collateralized, and collection efforts are continuously pursued. Loans or leases may be restructured by management when a borrower has experienced some change in financial status causing an inability to meet the original repayment terms and where the Company believes the borrower will eventually overcome those circumstances and make full restitution. Loans and leases are charged off when they are deemed to be uncollectible, while recoveries are generally recorded only when cash payments are received subsequent to the charge-off. | |||||||||||||||||||||||||||||
The following tables present the activity in the allowance for loan losses and the recorded investment in loans and impairment method by portfolio segment for each of the years ending December 31, 2014, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial and | |||||||||||||||||||||||||||||
Real Estate | Agricultural | Industrial(1) | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 8,260 | $ | 19 | $ | 6,396 | $ | 2,608 | $ | - | $ | 17,283 | |||||||||||||||||
Charge-offs | (11,108 | ) | (634 | ) | (4,468 | ) | (2,568 | ) | - | (18,778 | ) | ||||||||||||||||||
Recoveries | 302 | - | 578 | 278 | - | 1,158 | |||||||||||||||||||||||
Provision | 10,580 | 873 | 961 | 1,796 | - | 14,210 | |||||||||||||||||||||||
Balance, December 31, 2012 | 8,034 | 258 | 3,467 | 2,114 | - | 13,873 | |||||||||||||||||||||||
Charge-offs | (4,205 | ) | (473 | ) | (1,668 | ) | (1,917 | ) | - | (8,263 | ) | ||||||||||||||||||
Recoveries | 618 | - | 802 | 297 | - | 1,717 | |||||||||||||||||||||||
Provision | 1,097 | 1,193 | 1,186 | 623 | 251 | 4,350 | |||||||||||||||||||||||
Balance, December 31, 2013 | 5,544 | 978 | 3,787 | 1,117 | 251 | 11,677 | |||||||||||||||||||||||
Charge-offs | (1,629 | ) | (124 | ) | (625 | ) | (1,837 | ) | - | (4,215 | ) | ||||||||||||||||||
Recoveries | 1,913 | 6 | 801 | 716 | - | 3,436 | |||||||||||||||||||||||
Provision | 415 | 126 | (2,019 | ) | 1,769 | 59 | 350 | ||||||||||||||||||||||
Balance, December 31, 2014 | $ | 6,243 | $ | 986 | $ | 1,944 | $ | 1,765 | $ | 310 | $ | 11,248 | |||||||||||||||||
-1 | Includes mortgage warehouse lines | ||||||||||||||||||||||||||||
Loans evaluated for impairment: | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | Individually | Collectively | ||||||||||||||||||||||||
Real estate | $ | 30,620 | $ | 673,610 | $ | 47,010 | $ | 530,829 | $ | 66,133 | $ | 479,656 | |||||||||||||||||
Agricultural | - | 27,746 | 470 | 24,710 | 663 | 21,819 | |||||||||||||||||||||||
Commercial and Industrial (1) | 2,916 | 216,876 | 5,444 | 171,243 | 7,018 | 275,634 | |||||||||||||||||||||||
Consumer | 2,888 | 15,997 | 3,463 | 20,073 | 4,348 | 24,524 | |||||||||||||||||||||||
Total loans | $ | 36,424 | $ | 934,229 | $ | 56,387 | $ | 746,855 | $ | 78,162 | $ | 801,633 | |||||||||||||||||
(1) Includes mortgage warehouse lines | |||||||||||||||||||||||||||||
Reserves based on method of evaluation for impairment: | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Specific | General | Specific | General | Specific | General | ||||||||||||||||||||||||
Real estate | $ | 3,864 | $ | 2,379 | $ | 2,867 | $ | 2,677 | $ | 4,180 | $ | 3,854 | |||||||||||||||||
Agricultural | - | 986 | 126 | 852 | 28 | 230 | |||||||||||||||||||||||
Commercial and Industrial (1) | 916 | 1,028 | 1,925 | 1,862 | 2,039 | 1,428 | |||||||||||||||||||||||
Consumer | 668 | 1,097 | 431 | 686 | 878 | 1,236 | |||||||||||||||||||||||
Unallocated | - | 310 | - | 251 | - | - | |||||||||||||||||||||||
Total loan loss reserves | $ | 5,448 | $ | 5,800 | $ | 5,349 | $ | 6,328 | $ | 7,125 | $ | 6,748 | |||||||||||||||||
(1) Includes mortgage warehouse lines | |||||||||||||||||||||||||||||
The following tables present the recorded investment in nonaccrual loans and loans past due over 30 days as of December 31, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | 90 Days Or | Total | |||||||||||||||||||||||||||
30-59 Days | 60-89 Days | More Past | Financing | Non-Accrual | |||||||||||||||||||||||||
Past Due | Past Due | Due(2) | Total Past Due | Current | Receivables | Loans(1) | |||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | 332 | $ | - | $ | 332 | $ | 5,526 | $ | 5,858 | $ | - | |||||||||||||||
Other Construction/Land | 93 | 59 | 3,253 | 3,405 | 16,503 | 19,908 | 3,547 | ||||||||||||||||||||||
1-4 family - closed-end | 1,125 | 597 | 2,874 | 4,596 | 109,663 | 114,259 | 3,042 | ||||||||||||||||||||||
Equity Lines | 98 | 44 | 214 | 356 | 49,361 | 49,717 | 1,049 | ||||||||||||||||||||||
Multi-family residential | 185 | - | 171 | 356 | 18,362 | 18,718 | 171 | ||||||||||||||||||||||
Commercial real estate owner occupied | 1,460 | 26 | 1,316 | 2,802 | 215,852 | 218,654 | 3,417 | ||||||||||||||||||||||
Commercial real estate Non-owner occupied | 604 | 294 | 6,953 | 7,851 | 124,226 | 132,077 | 7,754 | ||||||||||||||||||||||
Farmland | 997 | - | - | 997 | 144,042 | 145,039 | 51 | ||||||||||||||||||||||
Total Real Estate Loans | 4,562 | 1,352 | 14,781 | 20,695 | 683,535 | 704,230 | 19,031 | ||||||||||||||||||||||
Agricultural | 618 | - | - | 618 | 27,128 | 27,746 | - | ||||||||||||||||||||||
Commercial and Industrial | 1,346 | 153 | 39 | 1,538 | 112,233 | 113,771 | 821 | ||||||||||||||||||||||
Mortage warehouse lines | - | - | - | - | 106,021 | 106,021 | - | ||||||||||||||||||||||
Consumer loans | 136 | 17 | - | 153 | 18,732 | 18,885 | 826 | ||||||||||||||||||||||
Total Gross Loans and Leases | $ | 6,662 | $ | 1,522 | $ | 14,820 | $ | 23,004 | $ | 947,649 | $ | 970,653 | $ | 20,678 | |||||||||||||||
-1 | Included in Total Financing Receivables | ||||||||||||||||||||||||||||
-2 | As of December 31, 2014 there were no loans over 90 days past due and still accruing. | ||||||||||||||||||||||||||||
31-Dec-13 | 90 Days Or | Total | |||||||||||||||||||||||||||
30-59 Days | 60-89 Days | More Past | Financing | Non-Accrual | |||||||||||||||||||||||||
Past Due | Past Due | Due(2) | Total Past Due | Current | Receivables | Loans(1) | |||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | 1,720 | $ | 1,720 | $ | - | |||||||||||||||
Other Construction/Land | 294 | - | 116 | 410 | 25,121 | 25,531 | 5,528 | ||||||||||||||||||||||
1-4 family - closed-end | 2,181 | 300 | 171 | 2,652 | 84,372 | 87,024 | 13,168 | ||||||||||||||||||||||
Equity Lines | 98 | - | 288 | 386 | 53,337 | 53,723 | 778 | ||||||||||||||||||||||
Multi-family residential | - | - | - | 8,485 | 8,485 | - | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
owner occupied | 1,917 | 144 | 2,011 | 4,072 | 181,940 | 186,012 | 5,516 | ||||||||||||||||||||||
Commercial real estate Non-owner occupied | - | - | 7,667 | 7,667 | 99,173 | 106,840 | 8,058 | ||||||||||||||||||||||
Farmland | 331 | - | - | 331 | 108,173 | 108,504 | 282 | ||||||||||||||||||||||
Total Real Estate Loans | 4,821 | 444 | 10,253 | 15,518 | 562,321 | 577,839 | 33,330 | ||||||||||||||||||||||
Agricultural | 892 | 327 | 125 | 1,344 | 23,836 | 25,180 | 470 | ||||||||||||||||||||||
Commercial and Industrial | 1,318 | 587 | 1,298 | 3,203 | 100,059 | 103,262 | 2,622 | ||||||||||||||||||||||
Mortgage warehouse lines | - | - | - | - | 73,425 | 73,425 | - | ||||||||||||||||||||||
Consumer loans | 181 | - | - | 181 | 23,355 | 23,536 | 992 | ||||||||||||||||||||||
Total Gross Loans and Leases | $ | 7,212 | $ | 1,358 | $ | 11,676 | $ | 20,246 | $ | 782,996 | $ | 803,242 | $ | 37,414 | |||||||||||||||
-1 | Included in Total Financing Receivables | ||||||||||||||||||||||||||||
-2 | As of December 31, 2013 there were no loans over 90 days past due and still accruing. | ||||||||||||||||||||||||||||
Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan's status changed. Subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. | |||||||||||||||||||||||||||||
Individually impaired loans as of December 31, 2014 and December 31, 2013 were as follows (dollars in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Average Recorded | Interest Income | ||||||||||||||||||||||||||
Balance(1) | Investment(2) | Related Allowance | Investment | Recognized(3) | |||||||||||||||||||||||||
With an Allowance Recorded | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Other Construction/Land | 1,155 | 1,078 | 179 | 1,193 | 70 | ||||||||||||||||||||||||
1-4 Family - closed-end | 4,167 | 4,167 | 288 | 4,276 | 258 | ||||||||||||||||||||||||
Equity Lines | 797 | 797 | 230 | 878 | 14 | ||||||||||||||||||||||||
Multifamily residential | 171 | 171 | 51 | 173 | - | ||||||||||||||||||||||||
Commercial real estate- owner occupied | 2,791 | 2,681 | 1,385 | 3,069 | 60 | ||||||||||||||||||||||||
Commercial real estate- non-owner occupied | 3,463 | 3,463 | 1,731 | 3,545 | 263 | ||||||||||||||||||||||||
Farmland | - | - | - | - | - | ||||||||||||||||||||||||
Total Real Estate | 12,544 | 12,357 | 3,864 | 13,134 | 665 | ||||||||||||||||||||||||
Agricultural | - | - | - | - | - | ||||||||||||||||||||||||
Commercial and Industrial | 2,910 | 2,898 | 916 | 3,046 | 123 | ||||||||||||||||||||||||
Consumer loans | 2,790 | 2,788 | 668 | 3,115 | 150 | ||||||||||||||||||||||||
18,244 | 18,043 | 5,448 | 19,295 | 938 | |||||||||||||||||||||||||
With no Related Allowance Recorded | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Other Construction/Land | 3,345 | 3,345 | - | 4,143 | - | ||||||||||||||||||||||||
1-4 Family - closed-end | 2,943 | 2,943 | - | 9,186 | - | ||||||||||||||||||||||||
Equity Lines | 609 | 570 | - | 611 | - | ||||||||||||||||||||||||
Multifamily residential | - | - | - | - | - | ||||||||||||||||||||||||
Commercial real estate- owner occupied | 2,915 | 1,939 | - | 3,046 | - | ||||||||||||||||||||||||
Commercial real estate- non-owner occupied | 9,563 | 9,416 | - | 10,306 | 118 | ||||||||||||||||||||||||
Farmland | 51 | 50 | - | 52 | - | ||||||||||||||||||||||||
Total Real Estate | 19,426 | 18,263 | - | 27,344 | 118 | ||||||||||||||||||||||||
Agricultural | - | - | - | - | - | ||||||||||||||||||||||||
Commercial and Industrial | 35 | 18 | - | 81 | - | ||||||||||||||||||||||||
Consumer loans | 275 | 100 | - | 347 | - | ||||||||||||||||||||||||
19,736 | 18,381 | - | 27,772 | 118 | |||||||||||||||||||||||||
Total | $ | 37,980 | $ | 36,424 | $ | 5,448 | $ | 47,067 | $ | 1,056 | |||||||||||||||||||
-1 | Contractual principal balance due from customer. | ||||||||||||||||||||||||||||
-2 | Principal balance on Company's books, less any direct charge offs. | ||||||||||||||||||||||||||||
-3 | Interest income is recognized on performing balances on a regular accrual basis. | ||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Average Recorded | Interest Income | ||||||||||||||||||||||||||
Balance(1) | Investment(2) | Related Allowance | Investment | Recognized(3) | |||||||||||||||||||||||||
With an Allowance Recorded | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Other Construction/Land | 2,972 | 2,972 | 502 | 3,000 | 98 | ||||||||||||||||||||||||
1-4 Family - closed-end | 13,522 | 13,522 | 1,324 | 13,630 | 260 | ||||||||||||||||||||||||
Equity Lines | 528 | 528 | 123 | 530 | 13 | ||||||||||||||||||||||||
Multifamily residential | - | - | - | - | - | ||||||||||||||||||||||||
Commercial real estate- owner occupied | 2,047 | 2,047 | 217 | 2,069 | 135 | ||||||||||||||||||||||||
Commercial real estate- non-owner occupied | 3,715 | 3,715 | 701 | 3,813 | 238 | ||||||||||||||||||||||||
Farmland | - | - | - | - | - | ||||||||||||||||||||||||
Total Real Estate | 22,784 | 22,784 | 2,867 | 23,042 | 744 | ||||||||||||||||||||||||
Agricultural | 125 | 125 | 126 | 131 | - | ||||||||||||||||||||||||
Commercial and Industrial | 4,580 | 4,345 | 1,925 | 4,496 | 131 | ||||||||||||||||||||||||
Consumer loans | 3,411 | 3,411 | 431 | 3,591 | 172 | ||||||||||||||||||||||||
30,900 | 30,665 | 5,349 | 31,260 | 1,047 | |||||||||||||||||||||||||
With no Related Allowance Recorded | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Other Construction/Land | 4,176 | 3,779 | - | 3,885 | - | ||||||||||||||||||||||||
1-4 Family - closed-end | 4,655 | 4,376 | - | 4,687 | 1 | ||||||||||||||||||||||||
Equity Lines | 565 | 493 | - | 493 | - | ||||||||||||||||||||||||
Multifamily residential | - | - | - | - | - | ||||||||||||||||||||||||
Commercial real estate- owner occupied | 7,436 | 5,516 | - | 5,568 | - | ||||||||||||||||||||||||
Commercial real estate- non-owner occupied | 10,077 | 9,780 | - | 9,820 | 115 | ||||||||||||||||||||||||
Farmland | 282 | 282 | - | 290 | - | ||||||||||||||||||||||||
Total Real Estate | 27,191 | 24,226 | - | 24,743 | 116 | ||||||||||||||||||||||||
Agricultural | 345 | 345 | - | 837 | - | ||||||||||||||||||||||||
Commercial and Industrial | 1,249 | 1,099 | - | 1,607 | 57 | ||||||||||||||||||||||||
Consumer loans | 241 | 52 | - | 77 | - | ||||||||||||||||||||||||
29,026 | 25,722 | - | 27,264 | 173 | |||||||||||||||||||||||||
Total | $ | 59,926 | $ | 56,387 | $ | 5,349 | $ | 58,524 | $ | 1,220 | |||||||||||||||||||
(1)Contractual principal balance due from customer. | |||||||||||||||||||||||||||||
(2)Principal balance on Company's books, less any direct charge offs. | |||||||||||||||||||||||||||||
(3)Interest income is recognized on performing balances on a regular accrual basis. | |||||||||||||||||||||||||||||
Included in loans above are troubled debt restructurings that were classified as impaired. The Company had $2,592,000 and $3,714,000 in commercial loans, $21,302,000 and $32,960,000 in real estate secured loans and $2,640,000 and $3,250,000 in consumer loans, which were modified as troubled debt restructurings and consequently classified as impaired at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
Additional commitments to existing customers with restructured loans totaled $0 and $250,000 at December 31, 2014 and 2013 respectively. | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans was $1,056,000, $1,220,000, and $1,394,000 for the years ended December 31, 2014, 2013 and 2012 respectively. There was no interest income recognized on a cash basis on impaired loans for the years ended December 31, 2014, 2013 and 2012 respectively. | |||||||||||||||||||||||||||||
The following is a summary of interest income from non-accrual loans in the portfolio at year-end that was not recognized (dollars in thousands): | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Interest that would have been recorded under the loans' original terms | $ | 1,666 | $ | 3,209 | $ | 4,084 | |||||||||||||||||||||||
Less gross interest recorded | 389 | 304 | 2,088 | ||||||||||||||||||||||||||
Foregone interest | $ | 1,277 | $ | 2,905 | $ | 1,996 | |||||||||||||||||||||||
Certain loans have been pledged to secure short-term borrowing arrangements (see Note 9). These loans totaled $475,979,000 and $413,369,000 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
Salaries and employee benefits totaling $2,673,000, $2,804,000, and $2,745,000, have been deferred as loan and lease origination costs to be amortized over the estimated lives of the related loans and leases for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
During the periods ended December 31, 2014 and 2013, the terms of certain loans were modified as troubled debt restructurings. Types of modifications applied to these loans, include a reduction of the stated interest rate, a modification of term, an agreement to collect only interest rather than principal and interest for a specified period, or any combination thereof. | |||||||||||||||||||||||||||||
The following tables present troubled debt restructurings by type of modification during the period ending December 31, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
Rate & | Term & | Rate, Term | |||||||||||||||||||||||||||
Rate | Term | Interest Only | Term | Interest Only | & Interest Only | ||||||||||||||||||||||||
31-Dec-14 | Modification | Modification | Modification | Modification | Modification | Modification | Total | ||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | $ | - | $ | - | $ | - | $ | 40 | $ | - | $ | - | $ | 40 | |||||||||||||||
1-4 family - closed-end | 41 | 13 | - | - | - | - | 54 | ||||||||||||||||||||||
Equity Lines | - | 945 | - | 29 | - | - | 974 | ||||||||||||||||||||||
Commercial real estate owner occupied | 279 | 123 | - | - | - | - | 402 | ||||||||||||||||||||||
Commercial real estate Non-owner occupied | - | - | - | - | - | - | - | ||||||||||||||||||||||
Total Real Estate Loans | 320 | 1,081 | - | 69 | - | - | 1,470 | ||||||||||||||||||||||
Agricultural | - | - | - | - | - | - | - | ||||||||||||||||||||||
Commercial and Industrial | - | 153 | - | 28 | 30 | - | 211 | ||||||||||||||||||||||
Consumer Loans | - | 9 | - | 103 | - | - | 112 | ||||||||||||||||||||||
$ | 320 | $ | 1,243 | $ | - | $ | 200 | $ | 30 | $ | - | $ | 1,793 | ||||||||||||||||
Rate, Term | |||||||||||||||||||||||||||||
Rate & | Term & | & Interest | |||||||||||||||||||||||||||
Rate | Term | Interest Only | Term | Interest Only | Only | ||||||||||||||||||||||||
31-Dec-13 | Modification | Modification | Modification | Modification | Modification | Modification | Total | ||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | $ | - | $ | 416 | $ | - | $ | - | $ | - | $ | - | $ | 416 | |||||||||||||||
1-4 family - closed-end | - | 3,338 | - | 238 | - | 102 | 3,678 | ||||||||||||||||||||||
Equity Lines | - | - | 40 | - | - | - | 40 | ||||||||||||||||||||||
Commercial real estate owner occupied | - | - | - | 557 | - | - | 557 | ||||||||||||||||||||||
Commercial real estate Non-owner occupied | - | - | - | - | - | - | - | ||||||||||||||||||||||
Total Real Estate Loans | - | 3,754 | 40 | 795 | - | 102 | 4,691 | ||||||||||||||||||||||
Agricultural | - | - | - | - | - | - | - | ||||||||||||||||||||||
Commercial and Industrial | - | 1,563 | - | 308 | - | - | 1,871 | ||||||||||||||||||||||
Consumer Loans | - | 469 | - | - | - | 92 | 561 | ||||||||||||||||||||||
$ | - | $ | 5,786 | $ | 40 | $ | 1,103 | $ | - | $ | 194 | $ | 7,123 | ||||||||||||||||
The following tables present loans by class modified as troubled debt restructurings including any subsequent defaults during the period ending December 31, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | Reserve | |||||||||||||||||||||||||||
31-Dec-14 | Number of Loans | Recorded Investment | Recorded Investment | Difference(1) | |||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | 1 | $ | 40 | $ | 40 | $ | - | ||||||||||||||||||||||
1-4 family - closed-end | 2 | 54 | 54 | - | |||||||||||||||||||||||||
Equity Lines | 11 | 974 | 974 | 364 | |||||||||||||||||||||||||
Commercial real estate owner occupied | 2 | 402 | 402 | - | |||||||||||||||||||||||||
Commercial real estate non-owner occupied | 0 | - | - | - | |||||||||||||||||||||||||
Total Real Estate Loans | 1,470 | 1,470 | 364 | ||||||||||||||||||||||||||
Agricultural | 0 | - | - | - | |||||||||||||||||||||||||
Commercial and Industrial | 9 | 211 | 211 | 75 | |||||||||||||||||||||||||
Consumer Loans | 4 | 112 | 112 | 15 | |||||||||||||||||||||||||
$ | 1,793 | $ | 1,793 | $ | 454 | ||||||||||||||||||||||||
-1 | This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. | ||||||||||||||||||||||||||||
31-Dec-14 | Subsequent Defaults | ||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||
Number of Loans | Investment | Charge-Offs | |||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | 4 | $ | 1,768 | $ | 77 | ||||||||||||||||||||||||
1-4 family - closed-end | 2 | 8,305 | - | ||||||||||||||||||||||||||
Equity Lines | 0 | - | - | ||||||||||||||||||||||||||
Commercial real estate- owner occupied | 2 | 937 | 31 | ||||||||||||||||||||||||||
Commercial real estate- non owner occupied | 0 | - | - | ||||||||||||||||||||||||||
Total Real Estate Loans | 11,010 | 108 | |||||||||||||||||||||||||||
Agricultural | 0 | - | - | ||||||||||||||||||||||||||
Commercial and Industrial | 2 | 129 | 2 | ||||||||||||||||||||||||||
Consumer Loans | 2 | 133 | 58 | ||||||||||||||||||||||||||
$ | 11,272 | $ | 168 | ||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | Reserve | |||||||||||||||||||||||||||
31-Dec-13 | Number of Loans | Recorded Investment | Recorded Investment | Difference(1) | |||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | 2 | $ | 418 | $ | 416 | $ | 38 | ||||||||||||||||||||||
1-4 family - closed-end | 8 | 3,679 | 3,678 | 20 | |||||||||||||||||||||||||
Equity Lines | 1 | 40 | 40 | 40 | |||||||||||||||||||||||||
Commercial real estate owner occupied | 1 | 557 | 557 | - | |||||||||||||||||||||||||
Commercial real estate non-owner occupied | 0 | - | - | - | |||||||||||||||||||||||||
Total Real Estate Loans | 4,694 | 4,691 | 98 | ||||||||||||||||||||||||||
Agricultural | 0 | - | - | - | |||||||||||||||||||||||||
Commercial and Industrial | 8 | 1,858 | 1,871 | 257 | |||||||||||||||||||||||||
Consumer Loans | 13 | 561 | 561 | 54 | |||||||||||||||||||||||||
$ | 7,113 | $ | 7,123 | $ | 409 | ||||||||||||||||||||||||
-1 | This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. | ||||||||||||||||||||||||||||
31-Dec-13 | Subsequent Defaults | ||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||
Number of Loans | Investment | Charge-Offs | |||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | 2 | $ | 162 | $ | 47 | ||||||||||||||||||||||||
1-4 family - closed-end | 2 | 779 | 133 | ||||||||||||||||||||||||||
Equity Lines | 0 | - | - | ||||||||||||||||||||||||||
Commercial real estate- owner occupied | 1 | 308 | 245 | ||||||||||||||||||||||||||
Commercial real estate- non owner occupied | 0 | - | - | ||||||||||||||||||||||||||
Total Real Estate Loans | 1,249 | 425 | |||||||||||||||||||||||||||
Agricultural | 0 | - | - | ||||||||||||||||||||||||||
Commercial and Industrial | 9 | 568 | 373 | ||||||||||||||||||||||||||
Consumer Loans | 7 | 181 | 132 | ||||||||||||||||||||||||||
$ | 1,998 | $ | 930 | ||||||||||||||||||||||||||
In the tables above, the TDRs that subsequently defaulted increased the allowance for loan and lease losses by $51,000 and $660,000 for the years ended December 31, 2014 and 2013. The total allowance for loan and lease losses specifically allocated to the balances that were classified as TDRs during the year ended December 31, 2014 and 2013 is $2,714,000 and $3,321,000, respectively. | |||||||||||||||||||||||||||||
Interest income for all performing loans, regardless of class (Pass, Special Mention, Substandard and Impaired), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. | |||||||||||||||||||||||||||||
Loan Servicing | |||||||||||||||||||||||||||||
The Company originates mortgage loans for sale to investors. During the years ended December 31, 2014, 2013, and 2012, all mortgage loans that were sold by the Company were sold without retention of related servicing. The Company's servicing portfolio at December 31, 2014, 2013 and 2012 totaled $770,000, $1,585,000 and $2,596,000 respectively. At December 31, 2014, loans were principally serviced for one investor. | |||||||||||||||||||||||||||||
Purchased Credit Impaired Loans | |||||||||||||||||||||||||||||
As part of the acquisition described in Note 21 Business Combination, the Company acquired on November 14, 2014, a portfolio of loans, some of which have shown evidence of credit deterioration since origination and it was probable at acquisition that all contractually required payments would not be collected. The carrying amount and unpaid principal balance of those loans are as follows (dollars in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | ||||||||||||||||||||||||||||
Real estate secured | $ | 1,222 | $ | 228 | |||||||||||||||||||||||||
Commercial and industrial | 92 | - | |||||||||||||||||||||||||||
Consumer | 1 | - | |||||||||||||||||||||||||||
Total purchased credit impaired loans | $ | 1,315 | $ | 228 | |||||||||||||||||||||||||
No ALLL was recorded on purchased credit impaired loans as of December 31, 2014. Purchased credit impaired loans acquired during that the year ended December 31, 2014 for which it was probable at acquisition that not all contractually required payments would be collected are as follows (dollars in thousands): | |||||||||||||||||||||||||||||
14-Nov-14 | |||||||||||||||||||||||||||||
Contractually required payments including interest | $ | 1,447 | |||||||||||||||||||||||||||
Non-accretable difference | (1,221 | ) | |||||||||||||||||||||||||||
Cash flows expected to be collected | 226 | ||||||||||||||||||||||||||||
Accretable difference | - | ||||||||||||||||||||||||||||
Fair value at acquisition | $ | 226 | |||||||||||||||||||||||||||
Discount accretion on PCI loans was $0 for the year ended December 31, 2014. | |||||||||||||||||||||||||||||
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PREMISES AND EQUIPMENT [Abstract] | |||||||||||||
PREMISES AND EQUIPMENT | 5 | PREMISES AND EQUIPMENT | |||||||||||
Premises and equipment at cost consisted of the following (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Land | $ | 3,019 | $ | 2,607 | |||||||||
Buildings and improvements | 16,348 | 15,818 | |||||||||||
Furniture, fixtured and equipment | 18,397 | 17,829 | |||||||||||
Leasehold improvements | 10,850 | 10,536 | |||||||||||
48,614 | 46,790 | ||||||||||||
Less accumulated depreciation and amortization | 26,808 | 26,402 | |||||||||||
Construction in progress | 47 | 5 | |||||||||||
$ | 21,853 | $ | 20,393 | ||||||||||
Depreciation and amortization included in occupancy and equipment expense totaled $2,107,000, $2,119,000, and $2,289,000, for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Operating Leases | |||||||||||||
The Company leases certain of its branch properties under non-cancelable operating leases. Rental expense included in occupancy and equipment expense totaled $1,017,000, $1,001,000 and $1,011,000 and for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Rent commitments, before considering renewal options that generally are present, were as follows: | |||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 1,143,000 | |||||||||||
2016 | 1,095,000 | ||||||||||||
2017 | 1,004,000 | ||||||||||||
2018 | 751,000 | ||||||||||||
2019 | 748,000 | ||||||||||||
Thereafter | 3,088,000 | ||||||||||||
$ | 7,829,000 | ||||||||||||
The Company has options to renew its branch facilities after the initial leases expire. The renewal options range from one to ten years and are not included in the payments reflected above. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 6 | GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
The change in goodwill during the year is as follows (dollars in thousands): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Balance at January 1 | $ | 5,544 | $ | 5,544 | $ | 5,544 | |||||||||||||||||||
Acquired goodwill | 1,364 | - | - | ||||||||||||||||||||||
Impairment | - | - | - | ||||||||||||||||||||||
Balance at December 31 | $ | 6,908 | $ | 5,544 | $ | 5,544 | |||||||||||||||||||
Impairment exists when a reporting unit's carrying value of goodwill exceeds its fair value. Bank of the Sierra (the “Bank”) is the only subsidiary of the Company that meets the materiality criteria necessary to be deemed an operating segment, and because the Company exists primarily for the purpose of holding the stock of the Bank we have determined that only one unified operating segment (the consolidated Company) exists. At December 31, 2014, the Company had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the Company exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. | |||||||||||||||||||||||||
Acquired Intangible Assets | |||||||||||||||||||||||||
Acquired intangible assets were as follows at year-end (dollars in thousands): | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||||||
Core deposit intangibles | $ | 1,075 | $ | 11 | $ | - | $ | - | |||||||||||||||||
Aggregate amortization expense was $11,000, $0 and $0 for 2014, 2013 and 2012. | |||||||||||||||||||||||||
Estimated amortization expense for each of the next five years and thereafter (dollars in thousands): | |||||||||||||||||||||||||
2015 | $ | 132 | |||||||||||||||||||||||
2016 | $ | 132 | |||||||||||||||||||||||
2017 | $ | 132 | |||||||||||||||||||||||
2018 | $ | 132 | |||||||||||||||||||||||
2019 | $ | 132 | |||||||||||||||||||||||
Thereafter | $ | 404 | |||||||||||||||||||||||
$ | 1,064 |
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
OTHER ASSETS [Abstract] | |||||||||||||
OTHER ASSETS | 7 | OTHER ASSETS | |||||||||||
Other assets consisted of the following (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Accrued interest receivable | $ | 5,852 | $ | 4,990 | |||||||||
Deferred tax assets | 12,810 | 12,286 | |||||||||||
Prepaid taxes | - | 2,787 | |||||||||||
Investment in limited partnerships | 7,276 | 9,204 | |||||||||||
Federal Home Loan Bank stock, at cost | 6,631 | 5,581 | |||||||||||
Other | 4,912 | 5,613 | |||||||||||
$ | 37,481 | $ | 40,461 | ||||||||||
The Company has invested in limited partnerships that operate qualified affordable housing projects to receive tax benefits in the form of tax deductions from operating losses and tax credits. The Company accounts for these investments under the cost method and management analyzes these investments annually for potential impairment. The Company had no remaining capital commitments to these partnerships at December 31, 2014. | |||||||||||||
The Company holds certain equity investments that are not readily marketable securities and thus are classified as “other assets” on the Company's balance sheet. These include investments in Pacific Coast Bankers Bancshares, California Economic Development Lending Initiative, and the Federal Home Loan Bank (“FHLB”). The largest of these is the Company's $6,631,000 investment in FHLB stock, carried at cost. Quarterly, the FHLB evaluates and adjusts the Company's minimum stock requirement based on the Company's borrowing activity and membership requirements. Any stock deemed in excess is automatically repurchased by the FHLB at cost. |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
DEPOSITS [Abstract] | |||||||||||||
DEPOSITS | 8 | DEPOSITS | |||||||||||
Interest-bearing deposits consisted of the following (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Interest Bearing Demand Deposits | $ | 110,840 | $ | 82,408 | |||||||||
NOW | 275,494 | 200,313 | |||||||||||
Savings | 167,655 | 144,162 | |||||||||||
Money Market | 117,907 | 73,132 | |||||||||||
CDAR's, under $250,000 | 11,299 | 13,356 | |||||||||||
Time, under $250,000 | 151,719 | 152,103 | |||||||||||
Time, $250,000 or more | 135,884 | 132,708 | |||||||||||
Brokered Deposits | 5,000 | 10,000 | |||||||||||
$ | 975,798 | $ | 808,182 | ||||||||||
Aggregate annual maturities of time deposits were as follows (dollars in thousands): | |||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 295,099 | |||||||||||
2016 | $ | 4,075 | |||||||||||
2017 | $ | 2,597 | |||||||||||
2018 | $ | 1,173 | |||||||||||
2019 | $ | 304 | |||||||||||
Thereafter | $ | 654 | |||||||||||
$ | 303,902 | ||||||||||||
Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest Bearing Demand Deposits | $ | 283 | $ | 281 | $ | 257 | |||||||
NOW | 338 | 359 | 556 | ||||||||||
Savings | 241 | 285 | 241 | ||||||||||
Money Market | 80 | 94 | 127 | ||||||||||
CDAR's | 11 | 36 | 52 | ||||||||||
Time Deposits | 1,017 | 1,243 | 1,773 | ||||||||||
Brokered Deposits | 94 | 157 | 202 | ||||||||||
$ | 2,064 | $ | 2,455 | $ | 3,208 |
OTHER_BORROWING_ARRANGEMENTS
OTHER BORROWING ARRANGEMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
OTHER BORROWING ARRANGEMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||
OTHER BORROWING ARRANGEMENTS | 9 | OTHER BORROWING ARRANGEMENTS | |||||||||||||||||||||||||||||||||||
At year end, short-term borrowings consisted of the following (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Average | Weighted | Average | Weighted | ||||||||||||||||||||||||||||||||||
balance | average | balance | average | ||||||||||||||||||||||||||||||||||
outstanding | Amount | interest rate | outstanding | Amount | interest rate | ||||||||||||||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||||||||||
Repurchase agreements | $ | 5,936 | $ | 7,251 | 0.35 | % | $ | 2,876 | $ | 5,974 | 0.45 | % | |||||||||||||||||||||||||
Overnight Federal Home Loan | |||||||||||||||||||||||||||||||||||||
Bank advances | 3,502 | 18,200 | 0.11 | % | 3,497 | - | 0.17 | % | |||||||||||||||||||||||||||||
$ | 9,438 | $ | 25,451 | $ | 6,373 | $ | 5,974 | ||||||||||||||||||||||||||||||
At year end, long-term borrowings consisted of the following (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||||||||||||||
Fixed | average | average | |||||||||||||||||||||||||||||||||||
Amount | rate | interest rate | Amount | Fixed rate | interest rate | ||||||||||||||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances, maturing 2015 | $ | 4,000 | 0.29% | $ | - | - | |||||||||||||||||||||||||||||||
Federal Home Loan Bank advances, maturing 2016 | 2,000 | 0.54% | - | - | |||||||||||||||||||||||||||||||||
$ | 6,000 | 0.37% | $ | - | - | ||||||||||||||||||||||||||||||||
Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $380,494,000 of first mortgage loans under a blanket lien arrangement at year end 2014. Based on this collateral and the Company's holdings of FHLB stock, the Company was eligible to borrow up to the total of $244,424,000 at year-end 2014, with a remaining borrowing capacity of $167,076,000 if sufficient additional collateral was pledged. | |||||||||||||||||||||||||||||||||||||
The Company had unsecured lines of credit with its correspondent banks which, in the aggregate, amounted to $70,000,000 at December 31, 2014 and 2013, respectively, at interest rates which vary with market conditions. There was $0 outstanding under these lines of credit at December 31, 2014 and December 31, 2013, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
INCOME TAXES | 10 | INCOME TAXES | |||||||||||
The provision for income taxes follows (dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal: | |||||||||||||
Current | $ | 5,738 | $ | 563 | $ | 220 | |||||||
Deferred | (1,281 | ) | 1,842 | (647 | ) | ||||||||
4,457 | 2,405 | (427 | ) | ||||||||||
State: | |||||||||||||
Current | 1,604 | 170 | - | ||||||||||
Deferred | 130 | 518 | 83 | ||||||||||
1,734 | 688 | 83 | |||||||||||
$ | 6,191 | $ | 3,093 | $ | (344 | ) | |||||||
The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan and lease losses | $ | 4,877 | $ | 5,669 | |||||||||
Foreclosed assets | 1,208 | 1,779 | |||||||||||
Deferred compensation | 4,227 | 4,112 | |||||||||||
Accrued reserves | 613 | 594 | |||||||||||
Non accrual loans | 245 | 1,211 | |||||||||||
Other than temporary impairment charge | 565 | 576 | |||||||||||
Credit carryforward | 5,676 | 3,089 | |||||||||||
Net operating loss carryforward | 1,709 | - | |||||||||||
Other | 1,207 | 153 | |||||||||||
Total deferred tax assets | 20,327 | 17,183 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Premises and equipment | (726 | ) | (589 | ) | |||||||||
Deferred loan costs | (2,442 | ) | (2,254 | ) | |||||||||
Unrealized gain on securities available-for-sale | (3,011 | ) | (299 | ) | |||||||||
Other | (1,338 | ) | (1,755 | ) | |||||||||
Total deferred tax liabilities | (7,517 | ) | (4,897 | ) | |||||||||
Net deferred tax assets | $ | 12,810 | $ | 12,286 | |||||||||
The expense for income taxes differs from amounts computed by applying the statutory Federal income tax rates to income before income taxes. The significant items comprising these differences consisted of the following (dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense at Federal statutory rate | $ | 7,501 | $ | 5,597 | $ | 2,666 | |||||||
Increase (decrease) resulting from: | |||||||||||||
State franchise tax expense, net of Federal tax effect | 1,116 | 414 | - | ||||||||||
Tax exempt income | (1,018 | ) | (920 | ) | (1,388 | ) | |||||||
Affordable housing tax credits | (1,006 | ) | (1,257 | ) | (1,639 | ) | |||||||
Other | (402 | ) | (741 | ) | 17 | ||||||||
$ | 6,191 | $ | 3,093 | $ | (344 | ) | |||||||
Effective tax rate | 28.9 | % | 18.8 | % | (4.4 | %) | |||||||
The Company is subject to federal income tax and income tax of the state of California. Our federal income tax returns for the years ended December 31, 2011, 2012 and 2013 are open to audit by the federal authorities and our California state tax returns for the years ended December 31, 2010, 2011, 2012 and 2013 are open to audit by the state authorities. | |||||||||||||
The Company has net operating loss carry forwards of approximately $1.2 million for federal income and approximately $500 thousand for California franchise tax purposes. Net operating loss carry forwards, to the extent not used will begin to expire in 2029 Net operating loss carry forwards available from acquisitions are substantially limited by Section 382 of the Internal Revenue Code and benefits not expected to be realized due to the limitation have been excluded from the deferred tax asset and net operating loss carry forward amounts noted above. | |||||||||||||
There were no recorded interest or penalties related to uncertain tax positions as part of income tax for the years ended December 31, 2014, 2013, and 2012, respectively. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease within the next twelve months. |
SUBORDINATED_DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended | ||
Dec. 31, 2014 | |||
SUBORDINATED DEBENTURES [Abstract] | |||
SUBORDINATED DEBENTURES | 11 | SUBORDINATED DEBENTURES | |
Sierra Statutory Trust II (“Trust II”) and Sierra Capital Trust III (“Trust III”), (collectively, the “Trusts”) were formed by the Company for the sole purpose of issuing trust preferred securities fully and unconditionally guaranteed by the Company. For financial reporting purposes, the Trusts are not consolidated and the Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Subordinated Debentures”) held by the Trusts and issued and guaranteed by the Company are reflected in the Company's consolidated balance sheet in accordance with provisions of ASC Topic 810. Under applicable regulatory guidance, the amount of trust preferred securities that is eligible as Tier 1 capital is limited to twenty-five percent of the Company's Tier 1 capital on a pro forma basis. At December 31, 2014, all $30,000,000 of the Company's trust preferred securities qualified as Tier 1 capital. | |||
During the first quarter of 2004, Sierra Statutory Trust II issued 15,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS II), with a liquidation value of $1,000 per security, for gross proceeds of $15,000,000. The entire proceeds of the issuance were invested by Trust II in $15,464,000 of Subordinated Debentures issued by the Company, with identical maturity, re-pricing and payment terms as the TRUPS II. The Subordinated Debentures, purchased by Trust II, represent the sole assets of the Trust II. Those Subordinated Debentures mature on March 17, 2034, bear a current interest rate of 2.99% (based on 3-month LIBOR plus 2.75%), with re-pricing and payments due quarterly. | |||
Those Subordinated Debentures are currently redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 17th, June 17th, September 17th, or December 17th. The redemption price is par plus accrued and unpaid interest, except in the case of redemption under a special event which is defined in the debenture. | |||
The TRUPS II are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on March 17, 2034. | |||
Trust II has the option to defer payment of the distributions for a period of up to five years, as long as the Company is not in default on the payment of interest on the Subordinated Debentures. The TRUPS II issued in the offering were sold in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the TRUPS II. | |||
During the second quarter of 2006, Sierra Capital Trust III issued 15,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS III), with a liquidation value of $1,000 per security, for gross proceeds of $15,000,000. The entire proceeds of the issuance were invested by Trust III in $15,464,000 of Subordinated Debentures issued by the Company, with identical maturity, repricing and payment terms as the TRUPS III. The Subordinated Debentures, purchased by Trust III, represent the sole assets of the Trust III. Those Subordinated Debentures mature on September 23, 2036, bear a current interest rate of 1.63% (based on 3-month LIBOR plus 1.40%), with repricing and payments due quarterly. | |||
Those Subordinated Debentures are redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 23rd, June 23rd, September 23rd, or December 23rd. The redemption price is par plus accrued and unpaid interest, except in the case of redemption under a special event which is defined in the debenture. The TRUPS III are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on September 23, 2036. | |||
Trust III has the option to defer payment of the distributions for a period of up to five years, as long as the Company is not in default on the payment of interest on the Subordinated Debentures. The TRUPS III issued in the offering were sold in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the TRUPS III. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||||||||
COMMITMENTS AND CONTINGENCIES | 12 | COMMITMENTS AND CONTINGENCIES | ||||||||||
Letter of Credit | ||||||||||||
The Company holds two letters of credit with the Federal Home Loan Bank of San Francisco totaling $87,600,000. A $80,000,000 letter of credit is pledged to secure public deposits at December 31, 2014 and an $7,600,000 standby letter of credit was obtained on behalf of one of our customers to guarantee financial performance. Should the standby letter of credit be drawn upon, the customer would reimburse the Company from an existing line of credit. | ||||||||||||
Federal Reserve Requirements | ||||||||||||
Banks are required to maintain reserves with the Federal Reserve Bank equal to a specified percentage of their reservable deposits less vault cash. The reserve balances maintained at the Federal Reserve Bank at December 31, 2014 and 2013 were $0 and $41,761,000, respectively. | ||||||||||||
Financial Instruments with Off-Balance-Sheet Risk | ||||||||||||
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments consist of commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. | ||||||||||||
The Company's exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and letters of credit as it does for loans included on the balance sheet. | ||||||||||||
The following financial instruments represent off-balance-sheet credit risk (dollars in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Fixed-rate commitments to extend credit | $ | 83,416 | $ | 64,148 | ||||||||
Variable-rate commitments to extend credit | $ | 283,493 | $ | 356,559 | ||||||||
Standby letters of credit | $ | 6,787 | $ | 8,703 | ||||||||
Commercial and similar letters of credit | $ | 7,602 | $ | 8,070 | ||||||||
Commitments to extend credit consist primarily of the unused or unfunded portions of the following: home equity lines of credit; commercial real estate construction loans, where disbursements are made over the course of construction; commercial revolving lines of credit; mortgage warehouse lines of credit; unsecured personal lines of credit; and formalized (disclosed) deposit account overdraft lines. Commitments generally have fixed expiration dates 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. Commitments to extend credit are made at both fixed and variable rates of interest as stated in the table above. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party, while commercial letters of credit represent the Company's commitment to pay a third party on behalf of a customer upon fulfillment of contractual requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. | ||||||||||||
Concentration in Real Estate Lending | ||||||||||||
At December 31, 2014, in management's judgment, a concentration of loans existed in real estate related loans. At that date, approximately 73% of the Company's loans were real estate related. Balances secured by commercial buildings and construction and development loans represented 53% of all real estate loans, while loans secured by non-construction residential properties accounted for 26%, and loans secured by farmland were 21% of real estate loans. Although management believes the loans within these concentrations have no more than the normal risk of collectability, a further decline in the performance of the economy in general or a further decline in real estate values in the Company's primary market areas, in particular, could have an adverse impact on collectability. | ||||||||||||
Concentration by Geographic Location | ||||||||||||
The Company grants commercial, real estate mortgage, real estate construction and consumer loans to customers primarily in the South Central San Joaquin Valley of California, specifically Tulare, Fresno, Kern, Kings and Madera counties and the Southern California corridor between Santa Paula and Santa Clarita in the counties of Ventura and Los Angeles. The ability of a substantial portion of the Company's customers to honor their contracts is dependent on the economy in these areas. Although the Company's loan portfolio is diversified, there is a relationship in those regions between the local agricultural economy and the economic performance of loans made to non-agricultural customers. | ||||||||||||
Contingencies | ||||||||||||
The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | 13 | SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||
Share Repurchase Plan | ||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2014, the Company had a stock repurchase plan which has no expiration date. During the year ended December 31, 2014, the Company repurchased 623,348 shares. The total number of shares available for repurchase at December 31, 2014 was 76,652. Repurchases are generally made in the open market at market prices. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||
A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic Earnings Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (dollars in thousands) | $ | 15,240 | $ | 13,369 | $ | 8,185 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 14,001,958 | 14,155,927 | 14,103,805 | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 1.09 | $ | 0.94 | $ | 0.58 | ||||||||||||||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (dollars in thousands) | $ | 15,240 | $ | 13,369 | $ | 8,185 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 14,001,958 | 14,155,927 | 14,103,805 | |||||||||||||||||||||||||||||||||||||||||||||||||
Effect of dilutive stock options | 134,528 | 134,223 | 16,508 | |||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 14,136,486 | 14,290,150 | 14,120,313 | |||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.08 | $ | 0.94 | $ | 0.58 | ||||||||||||||||||||||||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In June 1998, Bank of the Sierra adopted the 1998 Stock Option Plan (the “1998 Plan”) for which shares were reserved for issuance to employees and directors under incentive and non-statutory agreements. The 1998 Plan was assumed by the Company effective August 10, 2001. Effective May 23, 2007, the 1998 Plan was terminated and no further options may be granted thereunder, but options granted under the 1998 Plan which were outstanding as of the termination date were not affected by this termination. As of December 31, 2014, options granted under the 1998 Plan covering 112,000 shares were still outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
On March 15, 2007 the Board of Directors approved and adopted the Company's 2007 Stock Incentive Plan (the “2007 Plan”), which was approved by the Company's shareholders on May 23, 2007. The 2007 Plan provides for the issuance of both “incentive” and “nonqualified” stock options to officers and employees, and of “nonqualified” stock options to non-employee directors, of the Company and its subsidiaries. The 2007 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants, which awards may be granted on such terms and conditions as are established by the Board of Directors or the Compensation Committee in its discretion. We have not issued, nor do we currently have plans to issue, restricted stock awards. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The maximum number of shares subject to issuance under the 2007 Plan was originally 1,500,000 shares of the Company's authorized but unissued common stock, covering both restricted stock awards and stock options. The number subject to issuance under the 2007 Plan had declined to 788,620 at December 31, 2014, due to stock options already granted under the plan net of any canceled options that were returned to the pool available for issuance. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
All options granted under the 2007 Plan have been or will be granted at an exercise price of not less than 100% of the fair market value of the stock on the date of grant, exercisable in installments as provided in individual stock option agreements. In the event of a “Change in Control” as defined in the 2007 Plan, all outstanding options shall become exercisable in full (subject to certain notification requirements), and shall terminate if not exercised within a specified period of time unless such options are assumed by the successor corporation or substitute options are granted. Options also terminate in the event an optionee ceases to be employed by or to serve as a director of the Company or its subsidiaries, and the vested portion thereof must be exercised within 30 days after such cessation of employment or service. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
A summary of the Company's stock option activity, including options from the 1998 Plan, follows (shares in thousands, except exercise price): | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average | Intrinsic | Weighted Average | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Exercise Price | Value (1) | Shares | Exercise Price | Shares | Exercise Price | ||||||||||||||||||||||||||||||||||||||||||||||
Outstanding, beginning of year | 746 | $ | 14.65 | 927 | $ | 14.16 | 810 | $ | 14.97 | |||||||||||||||||||||||||||||||||||||||||||
Exercised | (95 | ) | $ | 11.28 | (111 | ) | $ | 9.87 | (5 | ) | $ | 9.45 | ||||||||||||||||||||||||||||||||||||||||
Granted | 50 | $ | 16.35 | - | $ | - | 189 | $ | 10.21 | |||||||||||||||||||||||||||||||||||||||||||
Canceled | (69 | ) | $ | 14.2 | (70 | ) | $ | 15.75 | (67 | ) | $ | 13.08 | ||||||||||||||||||||||||||||||||||||||||
Outstanding, end of year | 632 | $ | 15.34 | $ | 2,850 | 746 | $ | 14.65 | 927 | $ | 14.16 | |||||||||||||||||||||||||||||||||||||||||
Exercisable, end of year (2) | 530 | $ | 16.25 | $ | 2,122 | 542 | $ | 16.3 | 504 | $ | 16.07 | |||||||||||||||||||||||||||||||||||||||||
-1 | The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. This amount changes based on changes in the market value of the Company's stock. | |||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2014 was 5.40 years and 5.07 years, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Information related to stock options during each year follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average grant-date fair value per share | $ | 2.67 | $ | - | $ | 3.86 | ||||||||||||||||||||||||||||||||||||||||||||||
Total intrinsic value of stock options exercised | $ | 468,000 | $ | 605,000 | $ | 9,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of stock options vested | $ | 367,000 | $ | 583,000 | $ | 517,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Cash received from the exercise of 95,330 shares was $1,076,000 for the period ended December 31, 2014 with a related tax benefit of $164,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company is using the Black-Scholes model to value stock options. In accordance with U.S. GAAP, charges of $181,000, $268,000 and $487,000 are reflected in the Company's income statements for the years ended December 31, 2014, 2013 and 2012, respectively, as pre-tax compensation and directors' expense related to stock options. The related tax benefit of these options is $63,000, $110,000 and $200,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized compensation expense associated with unvested stock options outstanding at December 31, 2014 was $99,000, which will be recognized over the next 2.9 years. |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | |||||||||||||||||||||||||||||
REGULATORY MATTERS | 14 | REGULATORY MATTERS | |||||||||||||||||||||||||||
The Company and the Bank are subject to certain regulatory requirements administered by the Board of Governors of the Federal Reserve System and the FDIC. Failure to meet these minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. Each of these components is defined in the regulations. Management believes that the Company and the Bank met all of their capital adequacy requirements as of December 31, 2014 and 2013. In addition, as of December 31, 2014 and 2013, notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's category. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and leverage capital ratios as set forth below (dollars in thousands): | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Capital | Capital | ||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
Leverage Ratio | |||||||||||||||||||||||||||||
Sierra Bancorp and subsidiary | $ | 199,853 | 12.99 | % | $ | 198,216 | 14.37 | % | |||||||||||||||||||||
Minimum requirement for "Well-Capitalized" institutions | 76,926 | 5 | % | 68,969 | 5 | % | |||||||||||||||||||||||
Minimum regulatory requirement | 61,541 | 4 | % | 55,175 | 4 | % | |||||||||||||||||||||||
Bank of the Sierra | $ | 195,174 | 12.72 | % | $ | 195,001 | 14.18 | % | |||||||||||||||||||||
Minimum requirement for "Well-Capitalized" institutions | 76,706 | 5 | % | 68,765 | 5 | % | |||||||||||||||||||||||
Minimum regulatory requirement | 61,365 | 4 | % | 55,012 | 4 | % | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Capital | Capital | ||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital Ratio | |||||||||||||||||||||||||||||
Sierra Bancorp and subsidiary | $ | 199,903 | 17.39 | % | $ | 198,225 | 20.39 | % | |||||||||||||||||||||
Minimum requirement for "Well-Capitalized" institutions | 68,972 | 6 | % | 58,330 | 6 | % | |||||||||||||||||||||||
Minimum regulatory requirement | 45,981 | 4 | % | 38,887 | 4 | % | |||||||||||||||||||||||
Bank of the Sierra | $ | 195,174 | 17.01 | % | $ | 195,001 | 20.11 | % | |||||||||||||||||||||
Minimum requirement for "Well-Capitalized" institutions | 68,843 | 6 | % | 58,174 | 6 | % | |||||||||||||||||||||||
Minimum regulatory requirement | 45,895 | 4 | % | 38,783 | 4 | % | |||||||||||||||||||||||
Total Risk-Based Capital Ratio | |||||||||||||||||||||||||||||
Sierra Bancorp and subsidiary | $ | 211,973 | 18.44 | % | $ | 210,669 | 21.67 | % | |||||||||||||||||||||
Minimum requirement for "Well-Capitalized" institutions | 114,953 | 10 | % | 97,217 | 10 | % | |||||||||||||||||||||||
Minimum regulatory requirement | 91,962 | 8 | % | 77,773 | 8 | % | |||||||||||||||||||||||
Bank of the Sierra | $ | 206,736 | 18.02 | % | $ | 206,960 | 21.35 | % | |||||||||||||||||||||
Minimum requirement for "Well-Capitalized" institutions | 114,739 | 10 | % | 96,957 | 10 | % | |||||||||||||||||||||||
Minimum regulatory requirement | 91,791 | 8 | % | 77,565 | 8 | % | |||||||||||||||||||||||
Under current rules of the Federal Reserve Board, qualified trust preferred securities are one of several “restricted” core capital elements which may be included in Tier 1 capital in an aggregate amount limited to 25% of all core capital elements, net of goodwill less any associated deferred tax liability. Amounts of restricted core capital elements in excess of these limits generally may be included in Tier 2 capital. Since the Company had less than $15 billion in assets at December 31, 2014, under the Dodd-Frank Act the Company will be able to continue to include its existing trust preferred securities in Tier 1 Capital to the extent permitted by FRB guidelines. | |||||||||||||||||||||||||||||
Dividend Restrictions | |||||||||||||||||||||||||||||
The Company's ability to pay cash dividends is dependent on dividends paid to it by the Bank, and is also limited by state corporation law. The California General Corporation Law allows a California corporation to pay dividends if the Company's retained earnings equal at least the amount of the proposed dividend. If the Company does not have sufficient retained earnings available for the proposed dividend, it may still pay a dividend to its shareholders if immediately after giving effect to the dividend the sum of the company's assets (exclusive of goodwill and deferred charges) would be at least equal to 125% of its liabilities (not including deferred taxes, deferred income and other deferred liabilities) and the current assets of the company would be at least equal to its current liabilities, or, if the average of its earnings before taxes on income and before interest expense for the two preceding fiscal years was less than the average of its interest expense for the two preceding fiscal years, at least equal to 125% of its current liabilities. | |||||||||||||||||||||||||||||
Dividends from the Bank to the Company are restricted under California law to the lesser of the Bank's retained earnings or the Bank's net income for the latest three fiscal years, less dividends previously declared during that period, or, with the approval of the Department of Business Oversight, to the greater of the retained earnings of the Bank, the net income of the Bank for its last fiscal year, or the net income of the Bank for its current fiscal year. As of December 31, 2014, the maximum amount available for dividend distribution under this restriction was approximately $20,618,000. |
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended | ||
Dec. 31, 2014 | |||
BENEFIT PLANS [Abstract] | |||
BENEFIT PLANS | 15 | BENEFIT PLANS | |
Salary Continuation Agreements, Directors' Retirement and Officer Supplemental Life Insurance Plans | |||
The Company has entered into salary continuation agreements with its executive officers, and has established retirement plans for qualifying members of the Board of Directors. The plans provide for annual benefits for up to fifteen years after retirement or death. The benefit obligation under these plans totaled $5,159,000 and $4,952,000 and was fully accrued for the years ended December 31, 2014 and 2013, respectively. The expense recognized under these arrangements totaled $320,000 and $288,000, and $292,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Salary continuation benefits paid to former directors or executives of the Company or their beneficiaries totaled $112,000 for the year ended December 31, 2014 and $83,000 for each of the years ended December 31, 2013 and 2012. The Company also provides benefits to former executives of Sierra National Bank under salary continuation plans that were in effect at the time Sierra National Bank was merged into Bank of the Sierra. The benefit obligation under these plans totaled $0, $89,000 and $145,000, and was fully accrued for the years ended December 31, 2014, and 2013, respectively. Benefits paid to former executives of SNB under this plan totaled $83,000 for the year ended December 31, 2014 and $67,000, for each of the years ended December 31, 2013, and 2012, respectively. Certain officers of the Company have supplemental life insurance policies with death benefits available to the officers' beneficiaries. | |||
In connection with these plans the Company has purchased, or acquired through the merger, single premium life insurance policies with cash surrender values totaling $38,303,000 and $35,250,000 at December 31, 2014 and 2013, respectively. | |||
Officer and Director Deferred Compensation Plan | |||
The Company has established a deferred compensation plan for certain members of the management group and a deferred fee plan for directors for the purpose of providing the opportunity for participants to defer compensation. The Company bears the costs for the plan's administration and the interest earned on participant deferrals. The related administrative expense was not material for the years ended December 31, 2014, 2013 and 2012. In connection with this plan, life insurance policies with cash surrender values totaling $4,686,000 and $4,174,000 at December 31, 2014 and 2013, respectively, are included on the consolidated balance sheet in other assets. | |||
401(k) Savings Plan | |||
The 401(k) savings plan (the “Plan”) allows participants to defer, on a pre-tax basis, up to 15% of their salary (subject to Internal Revenue Service limitations) and accumulate tax-deferred earnings as a retirement fund. The Bank may make a discretionary contribution to match a specified percentage of the first 6% of the participants' contributions annually. The amount of the matching contribution was 75%, 60% and 50% for the years ended December 31, 2014, 2013 and 2012 respectively. The matching contribution is discretionary, vests over a period of five years from the participants' hire date, and is subject to the approval of the Board of Directors. The Company contributed $477,000, $360,000 and $302,000 to the Plan in 2014, 2013 and 2012, respectively. |
NONINTEREST_REVENUE
NON-INTEREST REVENUE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
NON-INTEREST REVENUE [Abstract] | |||||||||||||
NON-INTEREST REVENUE | 16 | NON-INTEREST REVENUE | |||||||||||
The major grouping of non-interest revenue on the consolidated income statements includes several specific items: service charges on deposit accounts, gains on the sale of loans, credit card fees, check card fees, the net gain (loss) on sales and calls of investment securities available for sale, and the net increase (decrease) in the cash surrender value of life insurance. | |||||||||||||
Non-interest revenue also includes one general category of “other income” of which the following are major components (dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Included in other income: | |||||||||||||
Loss on limited partnerships | $ | (1,161 | ) | $ | (1,063 | ) | $ | (395 | ) | ||||
Dividends on Equity Investments | 453 | 356 | 67 | ||||||||||
Rental income on leases | - | 46 | 102 | ||||||||||
Other | 1,957 | 2,569 | 2,134 | ||||||||||
Total other non-interest income | $ | 1,249 | $ | 1,908 | $ | 1,908 |
OTHER_NONINTEREST_EXPENSE
OTHER NON-INTEREST EXPENSE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
OTHER NON-INTEREST EXPENSE [Abstract] | |||||||||||||
OTHER OPERATING EXPENSE | 17 | OTHERNON-INTEREST EXPENSE | |||||||||||
Other non-interest expense consisted of the following (dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Professional fees | $ | 3,354 | $ | 4,143 | $ | 3,454 | |||||||
Data processing | 2,716 | 1,987 | 1,807 | ||||||||||
Advertising and promotion | 2,205 | 1,960 | 1,771 | ||||||||||
Deposit services | 2,587 | 1,980 | 2,266 | ||||||||||
Stationery and supplies | 1,192 | 657 | 738 | ||||||||||
Telephone and data communication | 1,283 | 1,613 | 1,549 | ||||||||||
Loan and credit card processing | 1,113 | 1,327 | 419 | ||||||||||
Foreclosed assets (income) expense, net | (1,420 | ) | 1,202 | 4,914 | |||||||||
Postage | 775 | 713 | 718 | ||||||||||
Other | 1,230 | 1,039 | 1,905 | ||||||||||
Total other non-interest expense | $ | 15,035 | $ | 16,621 | $ | 19,541 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||||||
RELATED PARTY TRANSACTIONS | 18 | RELATED PARTY TRANSACTIONS | |||||||||||
During the normal course of business, the Bank enters into loans with related parties, including executive officers and directors. These loans are made with substantially the same terms, including rates and collateral, as loans to unrelated parties. The following is a summary of the aggregate activity involving related party borrowers (dollars in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 566 | $ | 629 | $ | 2,471 | |||||||
Disbursements | 13,843 | 543 | 625 | ||||||||||
Amounts repaid | (12,006 | ) | (606 | ) | (2,467 | ) | |||||||
Balance, end of year | $ | 2,403 | $ | 566 | $ | 629 | |||||||
Undisbursed commitments to related parties | $ | 1,428 | $ | 460 | $ | 330 | |||||||
Deposits from related parties held by the Bank at December 31, 2014 and 2013 amounted to $6,070,000 and $7,523,000, respectively. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
FAIR VALUE [Abstract] | |||||||||||||||||||||||||||||||||||||
FAIR VALUE | 19 | FAIR VALUE | |||||||||||||||||||||||||||||||||||
Fair value is defined by U.S. GAAP 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. U.S. GAAP 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 fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||||||||||||||||||
§ | Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||||||||||||||||||||||||||||||||||||
§ | Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||||||||||||||||||
§ | Level 3: Significant unobservable inputs that reflect a company's own assumptions about the factors that market participants would use in pricing an asset or liability. | ||||||||||||||||||||||||||||||||||||
The Company used the following methods and significant assumptions to estimate fair values for each category of financial asset noted below: | |||||||||||||||||||||||||||||||||||||
Securities: The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities by relying on their relationship to other benchmark quoted securities. | |||||||||||||||||||||||||||||||||||||
Collateral-dependent impaired loans: A specific loss allowance is created for collateral dependent impaired loans, representing the difference between the face value of the loan and its current appraised value less estimated disposition costs. | |||||||||||||||||||||||||||||||||||||
Foreclosed assets: Repossessed real estate (OREO) and other assets are carried at the lower of cost or fair value. Fair value is the appraised value less expected selling costs for OREO and some other assets such as mobile homes, and for all other assets fair value is represented by the estimated sales proceeds as determined using reasonably available sources. Foreclosed assets for which appraisals can be feasibly obtained are periodically measured for impairment using updated appraisals. Fair values for other foreclosed assets are adjusted as necessary, subsequent to a periodic re-evaluation of expected cash flows and the timing of resolution. If impairment is determined to exist, the book value of a foreclosed asset is immediately written down to its estimated impaired value through the income statement, thus the carrying amount is equal to the fair value and there is no valuation allowance. | |||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis, including financial liabilities for which the Company has elected the fair value option, are summarized below (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014, Using | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Unobservable | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Inputs | Realized | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | Gain/(Loss) | |||||||||||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||||
US Government Agencies | $ | - | $ | 27,270 | $ | - | $ | 27,270 | $ | - | |||||||||||||||||||||||||||
Mortgage-backed securities | - | 381,442 | - | 381,442 | - | ||||||||||||||||||||||||||||||||
State and political subdivisions | - | 100,949 | - | 100,949 | - | ||||||||||||||||||||||||||||||||
Equity securities | 2,222 | - | - | 2,222 | - | ||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,222 | $ | 509,661 | $ | - | $ | 511,883 | $ | - | |||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013, Using | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Unobservable | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Inputs | Realized | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | Gain/(Loss) | |||||||||||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||||
US Government Agencies | $ | - | $ | 5,304 | $ | - | $ | 5,304 | $ | - | |||||||||||||||||||||||||||
Mortgage-backed securities | - | 320,721 | - | 320,721 | - | ||||||||||||||||||||||||||||||||
State and political subdivisions | - | 96,563 | - | 96,563 | - | ||||||||||||||||||||||||||||||||
Equity securities | 2,456 | - | - | 2,456 | - | ||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,456 | $ | 422,588 | $ | - | $ | 425,044 | $ | - | |||||||||||||||||||||||||||
Assets and liabilities measured at fair market value on a non-recurring basis are summarized below (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Significant | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||||||||||||||
Collateral dependent impaired loans | $ | - | $ | 4,791 | $ | - | $ | 4,791 | |||||||||||||||||||||||||||||
Foreclosed assets | $ | - | $ | 3,991 | $ | - | $ | 3,991 | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Significant | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||||||||||||||
Collateral dependent impaired loans | $ | - | $ | 14,705 | $ | - | $ | 14,705 | |||||||||||||||||||||||||||||
Foreclosed assets | $ | - | $ | 8,185 | $ | - | $ | 8,185 |
DISCLOSURES_ABOUT_FAIR_VALUE_O
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 20 | DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||
Disclosures include estimated fair values for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company's entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. | |||||||||||||||||||||||||||||||||||||
Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, and fed funds sold: For cash and cash equivalents and fed funds sold, the carrying amount is estimated to be fair value. | |||||||||||||||||||||||||||||||||||||
Securities: The fair values of investment securities are determined by obtaining quoted prices on nationally recognized securities exchanges or by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities by relying on their relationship to other benchmark quoted securities when quoted prices for specific securities are not readily available. | |||||||||||||||||||||||||||||||||||||
Loans and leases: For variable-rate loans and leases that re-price frequently with no significant change in credit risk or interest rate spread, fair values are based on carrying values. Fair values for other loans and leases are estimated by discounting projected cash flows at interest rates being offered at each reporting date for loans and leases with similar terms, to borrowers of comparable creditworthiness. | |||||||||||||||||||||||||||||||||||||
Loans held for sale: Since loans designated by the Company as available-for-sale are typically sold shortly after making the decision to sell them, realized gains or losses are usually recognized within the same period and fluctuations in fair values are thus not relevant for reporting purposes. If available-for-sale loans stay on our books for an extended period of time, the fair value of those loans is determined using quoted secondary-market prices. | |||||||||||||||||||||||||||||||||||||
Cash surrender value of life insurance policies: The fair values are based on current cash surrender values at each reporting date provided by the insurers. | |||||||||||||||||||||||||||||||||||||
Investment in limited partnerships: The fair values of our investments in limited partnerships are estimated using quarterly indications of value provided by the general partner. The fair values of undisbursed capital commitments are assumed to be the same as their book values. | |||||||||||||||||||||||||||||||||||||
Other investments: Included in other assets are certain long-term investments carried at cost, which approximates estimated fair value, unless an impairment analysis indicates the need for adjustments. | |||||||||||||||||||||||||||||||||||||
Deposits: Fair values for non-maturity deposits are equal to the amount payable on demand at the reporting date, which is the carrying amount. Fair values for fixed-rate certificates of deposit are estimated using a cash flow analysis, discounted at interest rates being offered at each reporting date by the Bank for certificates with similar remaining maturities. | |||||||||||||||||||||||||||||||||||||
Short-term borrowings: The carrying amounts approximate fair values for federal funds purchased, overnight FHLB advances, borrowings under repurchase agreements, and other short-term borrowings maturing within ninety days of the reporting dates. Fair values of other short-term borrowings are estimated by discounting projected cash flows at the Company's current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||||||||||||||||||
Long-term borrowings: The fair values of the Company's long-term borrowings are estimated using projected cash flows discounted at the Company's current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||||||||||||||||||
Subordinated debentures: The fair values of subordinated debentures are determined based on the current market value for like instruments of a similar maturity and structure. | |||||||||||||||||||||||||||||||||||||
Commitments to extend credit and letters of credit: If funded, the carrying amounts for currently unused commitments would approximate fair values for the newly created financial assets at the funding date. However, because of the high degree of uncertainty with regard to whether or not those commitments will ultimately be funded, fair values for loan commitments and letters of credit in their current undisbursed state cannot reasonably be estimated, and only notional values are disclosed in the table below. | |||||||||||||||||||||||||||||||||||||
Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Significant | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||||||||||||||
Carrying Amount | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 50,095 | $ | 50,095 | $ | - | $ | - | $ | 50,095 | |||||||||||||||||||||||||||
Securities available for sale | 511,883 | 2,222 | 509,661 | - | 511,883 | ||||||||||||||||||||||||||||||||
Loans and leases held for investment | 956,265 | - | 966,599 | - | 966,599 | ||||||||||||||||||||||||||||||||
Collateral dependent impaired loans | 4,791 | - | 4,791 | - | 4,791 | ||||||||||||||||||||||||||||||||
Loans held-for-sale | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Cash surrender value of life insurance policies | 42,989 | - | 42,989 | - | 42,989 | ||||||||||||||||||||||||||||||||
Other investments | 7,042 | - | 7,042 | - | 7,042 | ||||||||||||||||||||||||||||||||
Investment in limited partnership | 7,276 | - | 7,276 | - | 7,276 | ||||||||||||||||||||||||||||||||
Accrued interest receivable | 5,852 | - | 5,852 | - | 5,852 | ||||||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||
Noninterest-bearing | $ | 390,897 | $ | 390,897 | $ | - | $ | - | $ | 390,897 | |||||||||||||||||||||||||||
Interest-bearing | 975,798 | - | 976,002 | - | 976,002 | ||||||||||||||||||||||||||||||||
Fed funds purchased and Repurchase agreements | 7,251 | - | 7,251 | - | 7,251 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 18,200 | - | 18,200 | - | 18,200 | ||||||||||||||||||||||||||||||||
Long-term borrowings | 6,000 | - | 6,000 | - | 6,000 | ||||||||||||||||||||||||||||||||
Subordinated debentures | 30,928 | - | 11,428 | - | 11,428 | ||||||||||||||||||||||||||||||||
Limited partnership capital commitment | 914 | - | 914 | - | 914 | ||||||||||||||||||||||||||||||||
Accrued Interest Payable | 137 | - | 137 | - | 137 | ||||||||||||||||||||||||||||||||
Notional Amount | |||||||||||||||||||||||||||||||||||||
Off-balance-sheet financial instruments: | |||||||||||||||||||||||||||||||||||||
Commitments to extend credit | $ | 366,909 | |||||||||||||||||||||||||||||||||||
Standby letters of credit | 6,787 | ||||||||||||||||||||||||||||||||||||
Commercial lines of credit | 7,602 | ||||||||||||||||||||||||||||||||||||
Carrying amount and estimated fair values of financial instruments were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Significant | |||||||||||||||||||||||||||||||||||
Carrying | Identical Assets | Observable Inputs | Unobservable Inputs | ||||||||||||||||||||||||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 78,006 | $ | 78,006 | $ | - | $ | - | $ | 78,006 | |||||||||||||||||||||||||||
Securities available for sale | 425,044 | 2,456 | 422,588 | - | 425,044 | ||||||||||||||||||||||||||||||||
Loans and leases held for investment | 778,382 | - | 797,383 | - | 797,383 | ||||||||||||||||||||||||||||||||
Collateral dependent impaired loans | 14,705 | - | 14,705 | - | 14,705 | ||||||||||||||||||||||||||||||||
Loans held-for-sale | 105 | 105 | - | - | 105 | ||||||||||||||||||||||||||||||||
Cash surrender value of life insurance policies | 39,424 | - | 39,424 | - | 39,424 | ||||||||||||||||||||||||||||||||
Other investments | 5,932 | - | 5,932 | - | 5,932 | ||||||||||||||||||||||||||||||||
Investment in limited partnership | 9,204 | - | 9,204 | - | 9,204 | ||||||||||||||||||||||||||||||||
Accrued interest receivable | 4,990 | - | 4,990 | - | 4,990 | ||||||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||
Noninterest-bearing | $ | 365,997 | $ | 365,997 | $ | - | $ | - | $ | 365,997 | |||||||||||||||||||||||||||
Interest-bearing | 808,182 | - | 808,182 | - | 808,182 | ||||||||||||||||||||||||||||||||
Fed funds purchased and Repurchase agreements | 5,974 | - | 5,974 | - | 5,974 | ||||||||||||||||||||||||||||||||
Short-term borrowings | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Long-term borrowings | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Subordinated debentures | 30,928 | - | 11,175 | - | 11,175 | ||||||||||||||||||||||||||||||||
Limited partnership capital commitment | 962 | - | 962 | - | 962 | ||||||||||||||||||||||||||||||||
Accrued Interest Payable | 186 | - | 186 | - | 186 | ||||||||||||||||||||||||||||||||
Notional Amount | |||||||||||||||||||||||||||||||||||||
Off-balance-sheet financial instruments: | |||||||||||||||||||||||||||||||||||||
Commitments to extend credit | $ | 420,707 | |||||||||||||||||||||||||||||||||||
Standby letters of credit | 8,703 | ||||||||||||||||||||||||||||||||||||
Commercial lines of credit | 8,070 |
BUSINESS_COMBINATION
BUSINESS COMBINATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
BUSINESS COMBINATION [Abstract] | |||||||||||||
BUSINESS COMBINATION | 21 | BUSINESS COMBINATION | |||||||||||
On November 14, 2014, the Company acquired 100% of the outstanding common and preferred shares of Santa Clara Valley Bank (SCVB) in exchange for $15,300,000. Under the terms of the acquisition, SCVB common shareholders received $12,300,000 or $6.00 per share and SCVB preferred shareholders received $3,000,000 to retire outstanding preferred stock and associated warrants. Included in the $12,300,000 was $700,000 which the Company paid to cash out existing in-the-money warrants. SCVB results of operations were included in the Company's results beginning November 14, 2014. Acquisition related costs of $2,070,000 are included in other operating expense in the Company's income statement for the year ended December 31, 2014. | |||||||||||||
In accordance with GAAP, the Company recorded $1,364,000 of goodwill and $1,075,000 of core deposit intangibles. Goodwill represents the excess of the consideration transferred (cash) at the acquisition date over the fair values of the identifiable net assets acquired. The core deposit intangible is being amortized using a straight line basis over eight years. For tax purposes goodwill and core deposit intangibles are both non-deductible. | |||||||||||||
The acquisition offers the Company an opportunity to expand its market presence further south into the Santa Clara Valley. Synergies and cost savings resulting from the combined operations along with the introduction of the Company's existing products and services into the new region are expected to provide growth opportunities and increase profitability. | |||||||||||||
The following table summarizes the consideration paid for SCVB and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): | |||||||||||||
Consideration | |||||||||||||
Cash | $ | 15,338 | |||||||||||
Equity Instruments | - | ||||||||||||
Contingent Consideration | - | ||||||||||||
Fair value of total consideration transferred | $ | 15,338 | |||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||||||||
Cash and cash equivalents | $ | 15,852 | |||||||||||
Securities | 44,187 | ||||||||||||
Federal Home Loan Bank stock | 860 | ||||||||||||
Loans | 61,573 | ||||||||||||
Premises and equipment | 1,188 | ||||||||||||
Core deposit intangibles | 1,075 | ||||||||||||
Other assets | 5,719 | ||||||||||||
Total assets acquired | 130,454 | ||||||||||||
Deposits | 108,272 | ||||||||||||
Federal Home Loan Bank advances | 8,000 | ||||||||||||
Other liabilities | 208 | ||||||||||||
Total liabilities assumed | 116,480 | ||||||||||||
Total identifiable net assets | 13,974 | ||||||||||||
Goodwill | 1,364 | ||||||||||||
$ | 15,338 | ||||||||||||
In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was that of acquired loans. The excess of expected cash flows above the fair value of the majority of loans will be accreted to interest income over the remaining lives of the loans in accordance with FASB Accounting Standards Codification (ASC) 310-20 (formerly SFAS 91). The Company believes that all contractual cash flows related to these loans will be collected. As such, these loans were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. Loans acquired that were not subject to these requirements had a fair value and gross contractual amounts receivable of $61,345,000 and $71,470,000 as of the date of acquisition. | |||||||||||||
Certain loans, for which specific credit-related deterioration, since origination, was identified, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition on these ”purchase credit-impaired” loans is based on a reasonable expectation about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on non-accrual status and have no accretable yield. These loans are discussed in further detail in Note 4 Purchased Credit Impaired Loans. | |||||||||||||
In accordance with GAAP, there was no carryover of the allowance for loan losses that had been previously recorded by SCVB. | |||||||||||||
The Company recorded a deferred income tax asset of $2,300,000 related to SCVB's net operating loss carry-forward, as well as other tax attributes of SCVB, along with the effects of fair value adjustments resulting from applying the acquisition method of accounting. | |||||||||||||
The fair value of savings and transaction deposit accounts acquired from SCVB were assumed to approximate their carry value, as these accounts have no stated maturity and are payable on demand. | |||||||||||||
The following table presents unaudited pro forma information as if the acquisition had occurred at the beginning of 2012. The unaudited pro forma information included adjustments for interest income on loans and securities acquired, amortization of intangibles arising from the transaction, depreciation expense on property acquired, interest expense on deposits acquired, and the related income tax effects. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates (dollars in thousands): | |||||||||||||
Pro Forma | Pro Forma | Pro Forma | |||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net interest Income | $ | 56,095 | $ | 53,189 | $ | 55,545 | |||||||
Net income | $ | 13,792 | $ | 13,082 | $ | 8,609 | |||||||
Basic earnings per share | $ | 0.99 | $ | 0.92 | $ | 0.61 | |||||||
Diluted earnings per share | $ | 0.98 | $ | 0.92 | $ | 0.61 |
PARENT_ONLY_CONDENSED_FINANCIA
PARENT ONLY CONDENSED FINANCIAL STATEMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PARENT ONLY CONDENSED FINANCIAL STATEMENTS [Abstract] | |||||||||||||
PARENT ONLY CONDENSED FINANCIAL STATEMENTS | 22 | PARENT ONLY CONDENSED FINANCIAL STATEMENTS | |||||||||||
BALANCE SHEETS | |||||||||||||
Years Ended December 31, 2014 and 2013 | |||||||||||||
(dollars in thousands) | |||||||||||||
2014 | 2013 | ||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 2,801 | $ | 1,337 | |||||||||
Investments in bank subsidiary | 212,719 | 208,326 | |||||||||||
Investment in Trust subsidiaries | 928 | 928 | |||||||||||
Investment in other securities | 2,193 | 2,421 | |||||||||||
Other assets | 14 | 310 | |||||||||||
$ | 218,655 | $ | 213,322 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Liabilities: | |||||||||||||
Other liabilities | $ | 636 | $ | 720 | |||||||||
Subordinated debentures | 30,928 | 30,928 | |||||||||||
Total liabilities | 31,564 | 31,648 | |||||||||||
Shareholders' equity: | |||||||||||||
Common stock | 66,758 | 68,428 | |||||||||||
Retained Earnings | 116,026 | 112,817 | |||||||||||
Accumulated other comprehensive income, net of taxes | 4,307 | 429 | |||||||||||
Total shareholders' equity | 187,091 | 181,674 | |||||||||||
$ | 218,655 | $ | 213,322 | ||||||||||
STATEMENTS OF INCOME | |||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(dollars in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income: | |||||||||||||
Dividend from Subsidiary | $ | 15,500 | $ | 3,000 | $ | - | |||||||
Gain on sale of securities | 238 | - | - | ||||||||||
Other operating income | 80 | 16 | 10 | ||||||||||
Total Income | 15,818 | 3,016 | 10 | ||||||||||
Expense | |||||||||||||
Salaries and employee benefits | 347 | 349 | 254 | ||||||||||
Other expenses | 1,195 | 1,313 | 1,365 | ||||||||||
Total expenses | 1,542 | 1,662 | 1,619 | ||||||||||
Income (loss) before income taxes | 14,276 | 1,354 | (1,609 | ) | |||||||||
Income tax benefit | (690 | ) | (803 | ) | (663 | ) | |||||||
Income (loss) before equity in undistributed income of subsidiary | 14,966 | 2,157 | (946 | ) | |||||||||
Equity in undistributed income of subsidiary | 274 | 11,212 | 9,131 | ||||||||||
Net income | $ | 15,240 | $ | 13,369 | $ | 8,185 | |||||||
STATEMENTS OF CASH FLOWS | |||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(dollars in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net Income | $ | 15,240 | $ | 13,369 | $ | 8,185 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Undistributed net income of subsidiary | (274 | ) | (11,212 | ) | (9,131 | ) | |||||||
Gain on sale of securities | (238 | ) | - | - | |||||||||
Decrease (increase) in other assets | 325 | (75 | ) | 583 | |||||||||
(Decrease) increase in other liabilities | (71 | ) | 106 | 50 | |||||||||
Tax benefit (provision) from equity based compensation | - | 29 | (36 | ) | |||||||||
Net provided for (used in) operating activities | 14,982 | 2,217 | (349 | ) | |||||||||
Cash flows from investing activities: | |||||||||||||
Purchases of securities | (37 | ) | - | - | |||||||||
Sales of securities | 402 | - | - | ||||||||||
Net cash provided by investing activities | 365 | - | - | ||||||||||
Cash flows from financing activities: | |||||||||||||
Stock options exercised | 1,075 | 1,088 | 51 | ||||||||||
Repurchase of common stock | (10,183 | ) | - | - | |||||||||
Dividends paid | (4,775 | ) | (3,680 | ) | (3,385 | ) | |||||||
Net cash used in by financing activities | (13,883 | ) | (2,592 | ) | (3,334 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 1,464 | (375 | ) | (3,683 | ) | ||||||||
Cash and cash equivalents, beginning of year | 1,337 | 1,712 | 5,395 | ||||||||||
Cash and cash equivalents, end of year | $ | 2,801 | $ | 1,337 | $ | 1,712 |
CONDENSED_QUARTERLY_RESULTS_OF
CONDENSED QUARTERLY RESULTS OF OPERATIONS (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
CONDENSED QUARTERLY RESULTS OF OPERATIONS (Unaudited) [Abstract] | |||||||||||||||||
CONDENSED QUARTERLY RESULTS OF OPERATIONS | 22 | CONDENSED QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
The following table sets forth the Company's unaudited results of operations for the four quarters of 2014 and 2013. In management's opinion, the results of operations reflect all adjustments (which include only recurring adjustments) necessary to present fairly the condensed results for such periods (dollars in thousands, except per share data). | |||||||||||||||||
2014 Quarter Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
Interest income | $ | 14,509 | $ | 13,978 | $ | 13,682 | $ | 12,952 | |||||||||
Interest expense | 641 | 686 | 732 | 737 | |||||||||||||
Net interest income | 13,868 | 13,292 | 12,950 | 12,215 | |||||||||||||
Provision for loan and lease losses | - | - | 200 | 150 | |||||||||||||
Non-interest income | 4,321 | 3,785 | 4,018 | 3,707 | |||||||||||||
Non-interest expense | 12,889 | 11,750 | 11,008 | 10,728 | |||||||||||||
Net income before taxes | 5,300 | 5,327 | 5,760 | 5,044 | |||||||||||||
Provision for taxes | 1,647 | 1,776 | 1,523 | 1,245 | |||||||||||||
Net income | $ | 3,653 | $ | 3,551 | $ | 4,237 | $ | 3,799 | |||||||||
Diluted earnings per share | $ | 0.26 | $ | 0.25 | $ | 0.31 | $ | 0.26 | |||||||||
Cash dividend per share | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.08 | |||||||||
2013 Quarter Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
Interest income | $ | 13,188 | $ | 12,791 | $ | 13,090 | $ | 12,716 | |||||||||
Interest expense | 743 | 790 | 815 | 873 | |||||||||||||
Net interest income | 12,445 | 12,001 | 12,275 | 11,843 | |||||||||||||
Provision for loan and lease losses | 1,500 | 800 | 450 | 1,600 | |||||||||||||
Non-interest income | 4,607 | 4,319 | 4,022 | 4,115 | |||||||||||||
Non-interest expense | 10,788 | 11,490 | 10,717 | 11,820 | |||||||||||||
Net income before taxes | 4,764 | 4,030 | 5,130 | 2,538 | |||||||||||||
Provision for taxes | 895 | 663 | 1,331 | 204 | |||||||||||||
Net income | $ | 3,869 | $ | 3,367 | $ | 3,799 | $ | 2,334 | |||||||||
Diluted earnings per share | $ | 0.27 | $ | 0.23 | $ | 0.27 | $ | 0.16 | |||||||||
Cash dividend per share | $ | 0.07 | $ | 0.07 | $ | 0.06 | $ | 0.06 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation | ||||||||||
The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly-owned subsidiary, Bank of the Sierra. All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years' balances to conform to classifications used in 2014. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and prevailing practices within the banking industry. | |||||||||||
In accordance with U.S. GAAP, the Company's investments in Sierra Statutory Trust II and Sierra Capital Trust III are not consolidated and are accounted for under the equity method and included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the trusts are reflected on the Company's consolidated balance sheet. | |||||||||||
Use of Estimates | Use of Estimates | ||||||||||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. | |||||||||||
Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan and lease losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and lease losses and other real estate, management obtains independent appraisals for significant properties, evaluates the overall loan portfolio characteristics and delinquencies and monitors economic conditions. | |||||||||||
Cash Flows | Cash Flows | ||||||||||
For purposes of reporting cash flows, cash and cash equivalents include cash and deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and fed funds purchased and repurchase agreements. | |||||||||||
Securities | Securities | ||||||||||
Debt securities may be classified as held to maturity and carried at amortized cost when management has the positive ability and intent to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Securities available for sale are carried at fair value with unrealized holding gains and losses reported in other comprehensive income, net of tax. | |||||||||||
Interest income includes amortization of purchase premium or discount. Premiums or discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are record on the trade date and determined using the specific identification method. | |||||||||||
Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. Although the Company currently has the intent and the ability to hold the securities in its investment portfolio to maturity, the securities are all marketable and are currently classified as “available for sale” to allow maximum flexibility with regard to interest rate risk and liquidity management. | |||||||||||
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of the impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |||||||||||
Loans Held for Sale | Loans Held for Sale | ||||||||||
The Company periodically originates loans intended to be sold on the secondary market. Loans originated and intended for sale in the secondary market are carried at cost which approximates fair value since these loans are typically sold shortly after origination. The loan's cost basis includes unearned deferred fees and costs, and premiums and discounts. If loans held for sale remain on our books for an extended period of time the fair value of those loans is determined using quoted secondary market prices. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. | |||||||||||
Loans held for sale by the Company consist entirely of residential real estate loans. Loans classified as held for sale are disclosed in Note 4 of these Consolidated Financial Statements. | |||||||||||
Gains and losses on sales of loans are recognized at the time of sale and are calculated based on the difference between the selling price and the allocated book value of loans sold. Book value allocations are determined in accordance with U.S. GAAP. Any inherent risk of loss on loans sold is transferred to the buyer at the date of sale. | |||||||||||
The Company has issued various representations and warranties associated with the sale of loans. These representations and warranties may require the Company to repurchase loans with underwriting deficiencies as defined per the applicable sales agreements and certain past due loans within 90 days of the sale. The Company did not experience losses during the years ended December 31, 2014, 2013 or 2012 regarding these representations and warranties. | |||||||||||
Loans and Leases (Financing Receivables) | Loans and Leases (Financing Receivables) | ||||||||||
Our credit quality classifications of Loans and Leases include Pass, Special Mention, Substandard and Impaired. These classifications are defined in Note 4 (Loans and Leases) to our consolidated financial statements. | |||||||||||
Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, purchase premiums and discounts, write-downs, and an allowance for loan and lease losses. Loan and lease origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized in interest income as an adjustment to yield of the related loans and leases over the contractual life of the loan using both the effective interest and straight line methods without anticipating prepayments. | |||||||||||
Interest income for all performing loans, regardless of classification (Pass, Special Mention, Substandard and Impaired), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. | |||||||||||
Generally, the Company places a loans or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan's status changed. For loans with an interest reserve, i.e., where loan proceeds are advanced to the borrower to make interest payments, all interest recognized from the inception of the loan is reversed when the loan is placed on non-accrual. Once a loan is on non-accrual status subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Generally, loans and leases are not restored to accrual status until the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. | |||||||||||
Impaired loans are classified as either nonaccrual or accrual, depending on individual circumstances regarding the collectability of interest and principal according to the contractual terms. | |||||||||||
Purchased Credit Impaired Loans | Purchased Credit Impaired Loans | ||||||||||
The Company purchases individual loans and groups of loans, some of which show evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid, since there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. | |||||||||||
Such PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics. The Company estimates the amount and timing of expected cash flows for the loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan's or pool's contractual principal and interest over expected cash flows in not recorded (nonaccretable difference). | |||||||||||
Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan and lease losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income | |||||||||||
Loans Modified in a Troubled Debt Restructuring | Loans Modified in a Troubled Debt Restructuring | ||||||||||
Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when due to a borrower's financial difficulties the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower's ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. | |||||||||||
A TDR is generally considered to be in default when it appears likely that the customer will not be able to repay all principal and interest pursuant to the terms of the restructured agreement. | |||||||||||
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses | ||||||||||
The allowance for loan and lease losses is maintained at a level which, in management's judgment, is adequate to absorb loan and lease losses inherent in the loan and lease portfolio. The allowance for loan and lease losses is increased by a provision for loan and lease losses, which is charged to expense, and reduced by principal charge-offs, net of recoveries. The amount of the allowance is based on management's evaluation of the collectability of the loan and lease portfolio, changes in its risk profile, credit concentrations, historical trends, and economic conditions. This evaluation also considers the balance of impaired loans and leases. A loan or lease is impaired when it is probable that the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan or lease agreement. The impairment on certain individually identified loans or leases is measured based on the present value of expected future cash flows discounted at the original effective interest rate of the loan or lease. As a practical expedient, impairment may be measured based on the loan's or lease's observable market price or the fair value of collateral if the loan or lease is collateral dependent. The amount of impairment, if any, is recorded through the provision for loan and lease losses and is added to the allowance for loan and lease losses, with any changes over time recognized as additional bad debt expense in our provision for loan losses. Impaired loans with homogenous characteristics, such as one-to-four family residential mortgages and consumer installment loans, may be subjected to a collective evaluation for impairment, considering delinquency and repossession statistics, historical loss experience, and other factors. | |||||||||||
General reserves cover non-impaired loans and are based on historical net loss rates for each portfolio segment by call report code, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment's historical loss experience. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments; changes in nature and volume of the portfolio; changes in the experience, ability and depth of lending management and staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in quality of the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit; and the effect of the other external factors such as competition and legal and regulatory requirements. | |||||||||||
Most of the Company's business activity is with customers located in California within the Southern Central San Joaquin Valley and the corridor stretching between Santa Paula and Santa Clarita, therefore the Company's exposure to credit risk is significantly affected by changes in the economy in that region. The Company considers this concentration of credit risk when assessing and assigning qualitative factors in the allowance for loan losses. Portfolio segments identified by the Company include Direct Financing leases, Agricultural, Commercial and Industrial, Real Estate, Small Business Administration, and Consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer related loans; and credit scores, debt-to-income ratios, collateral type and loan-to-value ratios for consumer related loans. | |||||||||||
Though management believes the allowance for loan and lease losses to be adequate, ultimate losses may vary from their estimates. However, estimates are reviewed periodically, and as adjustments become necessary they are reported in earnings during the periods they become known. In addition, the FDIC and the California Department of Business Oversight, as an integral part of their examination processes, review the allowance for loan and lease losses. These agencies may require additions to the allowance for loan and lease losses based on their judgment about information available at the time of their examinations. | |||||||||||
Reserve for Off-Balance Sheet Commitments | Reserve for Off-Balance Sheet Commitments | ||||||||||
In addition to the exposure to credit loss from outstanding loans, the Company is also exposed to credit loss from certain off-balance sheet commitments such as unused commitments from revolving lines of credit, mortgage warehouse lines of credit, unused commitments on construction loans and commercial and standby letters of credit. Because the available funds have not yet been disbursed on these commitments the estimated losses are not included in the calculation of ALLL. The reserve for off-balance sheet commitments is an estimated loss contingency which is included in other liabilities on the Consolidated Balance Sheets. The adjustments to the reserve for off-balance sheet commitments are reported as a noninterest expense. This reserve is for estimated losses that could occur when the Company is contractually obligated to make a payment under these instruments and must seek repayment from a party that may not be as financially sound in the current period as it was when the commitment was originally made. | |||||||||||
Premises and Equipment | Premises and Equipment | ||||||||||
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of premises range between twenty-five to thirty-nine years. The useful lives of furniture, fixtures and equipment range between three to twenty years. Leasehold improvements are amortized over the life of the asset or the term of the related lease, whichever is shorter. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. | |||||||||||
Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. | |||||||||||
Foreclosed Assets | Foreclosed Assets | ||||||||||
Foreclosed assets include real estate and other property acquired in full or partial settlement of loan obligations. Upon acquisition, any excess of the recorded investment in the loan balance over the appraised fair market value, net of estimated selling costs, is charged against the allowance for loan and lease losses. A valuation allowance for losses on foreclosed assets is maintained to provide for temporary declines in value. The allowance is established through a provision for losses on foreclosed assets which is included in other non-interest expense. Subsequent gains or losses on sales or write-downs resulting from permanent impairments are recorded in other non-interest income or expense as incurred. Operating costs after acquisition are expensed. | |||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||||
The Company acquired Sierra National Bank in 2000. Goodwill resulting from business combinations prior to January 1, 2009 represents the amount by which the purchase price exceeded the fair value of the net assets. | |||||||||||
The Company acquired Santa Clara Valley Bank in 2014. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. | |||||||||||
Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist which indicate that an impairment test should be performed. The Company selected December 31, 2014 as the date to perform the annual impairment test for 2014. Goodwill is the only intangible asset with an indefinite life on our balance sheet. There was no impairment recognized for the years ended December 31, 2014, 2013, and 2012. | |||||||||||
Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The Company's other intangible assets consist solely of core deposit intangible assets arising from the acquisition of Santa Clara Valley Bank, which are being amortized on a straight line basis over eight years. | |||||||||||
Loan Commitments and Related Financial Instruments | |||||||||||
Loan Commitments and Related Financial Instruments | |||||||||||
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Details regarding these commitments and financial instruments are discussed in detail in Note 12 to our consolidated financial statements. | |||||||||||
Income Taxes | Income Taxes | ||||||||||
The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity's proportionate share of the consolidated provision for income taxes. | |||||||||||
Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |||||||||||
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have determined that as of December 31, 2014 all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the financial statements. | |||||||||||
The Company recognizes interest and penalties related to uncertain tax positions as part of income tax expense. | |||||||||||
Salary Continuation Agreements and Directors' Retirement Plan | Salary Continuation Agreements and Directors' Retirement Plan | ||||||||||
The Company has entered into agreements to provide members of the Board of Directors and certain key executives, or their designated beneficiaries, with annual benefits for up to fifteen years after retirement or death. The Company accrues for these future benefits from the effective date of the plan until the director's or executive's expected retirement date in a systematic and rational manner. At the consolidated balance sheet date, the amount of accrued benefits equals the then present value of the benefits expected to be provided to the director or employee, any beneficiaries, and covered dependents in exchange for the director's or employee's services to that date. | |||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||
Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of an adjustment for the effects of realized gains and losses and any applicable tax. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company's available for sale securities are included in other comprehensive income after adjusting for the effects of realized gains and losses. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. | |||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||
At December 31, 2014, the Company had one stock-based compensation plan, the Sierra Bancorp 2007 Stock Incentive Plan (the “2007 Plan”), which was adopted by the Company's Board of Directors on March 15, 2007 and approved by the Company's shareholders on May 23, 2007. The 2007 Plan originally covered 1,500,000 shares of the Company's authorized but unissued common stock, subject to adjustment for stock splits and dividends, and provides for the issuance of both “incentive” and “nonqualified” stock options to salaried officers and employees, and of “nonqualified” stock options to non-employee directors. The 2007 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants. We have not issued, nor do we currently have plans to issue, restricted stock awards. The 2007 plan supersedes the Company's 1998 Stock Option plan (“1998 Plan”) which was terminated. The outstanding options issued under the 1998 Plan were not affected by this termination. | |||||||||||
Compensation cost and director's expense is recognized for stock options issued to employees and directors and is recognized over the required service period, generally defined as the vesting period. The Company is using the Black-Scholes model to value stock options. The “multiple option” approach is used to allocate the resulting valuation to actual expense for current period. Expected volatility is based on historical volatility of the Company's common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of each option is estimated on the date of grant using the following assumptions: | |||||||||||
Years Ended December 31, | |||||||||||
2014 | 2013 (1) | 2012 | |||||||||
Dividend yield | 2.08 | % | N/A | 2.35 | % | ||||||
Expected Volatility | 25.01 | % | N/A | 56.71 | % | ||||||
Risk-free interest rate | 0.01 | % | N/A | 0.43 | % | ||||||
Expected option life | 4.0 years | N/A | 5.5 years | ||||||||
-1 | No stock options were issued in 2013. | ||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued ASU 2013-02, Comprehensive Income (Topic 220) which amended existing guidance related to reporting amounts reclassified out of accumulated other comprehensive income. These amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. These amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income, by component. In addition, an entity is required to present, either on the face of the statement where net income is presented on in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts. For public entities, this update became effective prospectively for reporting periods beginning after December 15, 2012. We adopted ASU 2013-2 commencing with our report on Form 10-Q filed for the first quarter of 2013. | |||||||||||
In January 2014, the FASB issued ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects, to provide additional flexibility with regard to accounting for investments in qualified affordable housing projects. ASU 2014-01 modifies the conditions that must be met to present the pretax impact and related tax benefits of such investments as a component of income taxes (“net” within income tax expense), to enable more investors to elect to use a “net” presentation for those investments. Investors that do not qualify for “net” presentation under the new guidance will continue to account for such investments under the equity method or cost method, which results in losses recognized in pretax income and tax benefits recognized in income taxes (“gross” presentation of investment results). For investments that qualify for the “net” presentation of investment performance, ASU 2014-01 introduces a “proportional amortization method” that can be elected to amortize the investment basis. If elected, the method is required for all eligible investments in qualified affordable housing projects. ASU 2014-01 also requires enhanced recurring disclosures for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. It is effective for interim and annual periods beginning after December 15, 2014, and early adoption is permitted. The Company currently expects to adopt ASU 2014-01 as of the first quarter of 2015. We will likely continue to account for our low-income housing tax credit investments using the equity method subsequent to our adoption of ASU 2014-01 and thus do not expect any impact on our income statement or balance sheet, but our disclosures with regard to low-income housing tax credit investments will be updated to reflect the new requirements. | |||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to resolve diversity in practice with respect to a creditor's reclassification of a collateralized consumer mortgage loan to other real estate owned (OREO). Current US GAAP requires a loan to be reclassified to OREO upon a troubled debt restructuring that is “in substance a repossession or foreclosure”, where the creditor receives “physical possession” of the debtor's assets regardless of whether formal foreclosure proceedings take place. The terms “in substance a repossession or foreclosure” and “physical possession” are not defined in US GAAP; therefore, questions have arisen about when a creditor should reclassify a collateralized mortgage loan to OREO. ASU 2014-04 requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or when the borrower voluntarily conveys all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 is effective for public business entities for interim and annual periods beginning after December 15, 2014. It will be adopted by the Company for the first quarter of 2015, and we do not expect any impact upon our financial statements or operations upon adoption. | |||||||||||
In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is the result of a joint project initiated by the FASB and the International Accounting Standards Board (IASB) to clarify the principles for recognizing revenue, and to develop a common revenue standard and disclosures for U.S. and international accounting standards that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosure requirements; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required with regard to contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently evaluating the potential effects of this guidance on its financial statements and disclosures. | |||||||||||
In June 2014, the FASB issued ASU 2014-12 which amended existing guidance related to the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. These amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. It will be adopted by the Company for the first quarter of 2016, and we do not expect any impact upon our financial statements or operations upon adoption. | |||||||||||
In August 2014, the FASB issued ASU 2014-14 which amended existing guidance related to the classification of certain government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA, upon foreclosure. It requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the following conditions are met: 1) The loan has a government guarantee that is not separable from the loan before foreclosure; 2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and 3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU 2014-14 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. It will be adopted by the Company for the first quarter of 2015, and we do not expect any impact upon our financial statements or operations upon adoption. |
SECURITIES_AVAILABLEFORSALE_Ta
SECURITIES AVAILABLE-FOR-SALE (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
SECURITIES AVAILABLE-FOR-SALE [Abstract] | |||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and fair value of the securities available-for-sale are as follows (dollars in thousands): | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||
US Government Agencies | $ | 26,959 | $ | 334 | $ | (23 | ) | $ | 27,270 | ||||||||||||||||
Mortgage-backed securities | 378,339 | 4,299 | (1,196 | ) | 381,442 | ||||||||||||||||||||
State and political subdivisions | 98,056 | 3,093 | (200 | ) | 100,949 | ||||||||||||||||||||
Equity securities | 1,210 | 1,012 | - | 2,222 | |||||||||||||||||||||
Total securities | $ | 504,564 | $ | 8,738 | $ | (1,419 | ) | $ | 511,883 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||
US Government Agencies | $ | 5,395 | $ | 18 | $ | (109 | ) | $ | 5,304 | ||||||||||||||||
Mortgage-backed securites | 320,223 | 3,269 | (2,771 | ) | 320,721 | ||||||||||||||||||||
State and political subdivisions | 97,361 | 1,723 | (2,521 | ) | 96,563 | ||||||||||||||||||||
Equity securities | 1,336 | 1,120 | - | 2,456 | |||||||||||||||||||||
Total securities | $ | 424,315 | $ | 6,130 | $ | (5,401 | ) | $ | 425,044 | ||||||||||||||||
Realized Gain (Loss) on Investments | Gross gains and losses from the sales and calls of securities for the years ended were as follows (dollars in thousands): | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Gross gains on sales and calls of securities | $ | 739 | $ | 6 | $ | 2,059 | |||||||||||||||||||
Gross losses on sales and calls of securities | (72 | ) | - | (297 | ) | ||||||||||||||||||||
Net gains on sales and calls of securities | $ | 667 | $ | 6 | $ | 1,762 | |||||||||||||||||||
Information Pertaining to Investment Securities Aggregated by Investment Category and Length of Time that Individual Securities in a Continuous Loss Position | At December 31, 2014 and 2013, the Company had 134 and 197 securities with unrealized gross losses, respectively. Information pertaining to these securities aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands): | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Less than twelve months | Twelve months or longer | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||
Losses | Fair Value | Losses | Fair Value | ||||||||||||||||||||||
US Government Agencies | $ | (23 | ) | $ | 3,485 | $ | - | $ | - | ||||||||||||||||
Mortgage-backed securities | (564 | ) | 84,004 | (632 | ) | 51,982 | |||||||||||||||||||
State and political subdivisions | (31 | ) | 7,738 | (169 | ) | 9,045 | |||||||||||||||||||
Equity securities | - | - | - | - | |||||||||||||||||||||
Total | $ | (618 | ) | $ | 95,227 | $ | (801 | ) | $ | 61,027 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less than twelve months | Twelve months or longer | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||
Losses | Fair Value | Losses | Fair Value | ||||||||||||||||||||||
US Government Agencies | $ | (92 | ) | $ | 1,913 | $ | (17 | ) | $ | 1,920 | |||||||||||||||
Mortgage-backed securities | (642 | ) | 21,747 | (2,129 | ) | 124,317 | |||||||||||||||||||
State and political subdivisions | (461 | ) | 6,799 | (2,060 | ) | 38,083 | |||||||||||||||||||
Equity securities | - | - | - | - | |||||||||||||||||||||
Total | $ | (1,195 | ) | $ | 30,459 | $ | (4,206 | ) | $ | 164,320 | |||||||||||||||
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities available-for-sale at December 31, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without penalties. | ||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Maturing within one year | $ | 686 | $ | 694 | |||||||||||||||||||||
Maturing after one year through five years | 222,081 | 225,415 | |||||||||||||||||||||||
Maturing after five years through ten years | 97,949 | 99,583 | |||||||||||||||||||||||
Maturing after ten years | 54,531 | 55,705 | |||||||||||||||||||||||
Securities not due at a single maturity date: | |||||||||||||||||||||||||
U.S Government agencies collateralized by mortgage obligations | 128,107 | 128,264 | |||||||||||||||||||||||
Other securities | 1,210 | 2,222 | |||||||||||||||||||||||
$ | 504,564 | $ | 511,883 | ||||||||||||||||||||||
Summary of amortized cost and fair values of general obligation and revenue bonds | The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company's investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations (dollars in thousands): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
General obligation bonds | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||
State of Issuance: | |||||||||||||||||||||||||
California | $ | 20,078 | $ | 21,288 | $ | 20,638 | $ | 21,272 | |||||||||||||||||
Texas | 14,489 | 14,675 | 11,340 | 11,024 | |||||||||||||||||||||
Illinois | 8,272 | 8,394 | 8,965 | 8,702 | |||||||||||||||||||||
Ohio | 7,456 | 7,555 | 7,659 | 7,485 | |||||||||||||||||||||
Washington | 5,966 | 6,126 | 5,487 | 5,340 | |||||||||||||||||||||
Arizona | 2,070 | 2,156 | 2,100 | 2,050 | |||||||||||||||||||||
Other (20 states) | 20,139 | 20,660 | 20,666 | 20,429 | |||||||||||||||||||||
Total General Obligation Bonds | 78,470 | 80,854 | 76,855 | 76,302 | |||||||||||||||||||||
Revenue bonds | |||||||||||||||||||||||||
State of Issuance: | |||||||||||||||||||||||||
Arizona | 3,710 | 3,777 | 4,700 | 4,341 | |||||||||||||||||||||
Texas | 3,273 | 3,387 | 2,762 | 2,719 | |||||||||||||||||||||
California | 2,174 | 2,233 | 2,519 | 2,579 | |||||||||||||||||||||
Washington | 1,167 | 1,197 | 1,170 | 1,211 | |||||||||||||||||||||
Ohio | 321 | 332 | 324 | 339 | |||||||||||||||||||||
Other (8 states) | 8,941 | 9,169 | 6,758 | 6,742 | |||||||||||||||||||||
Total Revenue Bonds | 19,586 | 20,095 | 18,233 | 17,931 | |||||||||||||||||||||
Certificates of participation | - | - | 2,273 | 2,330 | |||||||||||||||||||||
Total Obligations of States and Political Subdivisions | $ | 98,056 | $ | 100,949 | $ | 97,361 | $ | 96,563 | |||||||||||||||||
Revenue bonds | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||
Revenue Source: | |||||||||||||||||||||||||
Water | $ | 7,100 | $ | 7,278 | $ | 7,409 | $ | 7,144 | |||||||||||||||||
College & University | 2,723 | 2,834 | 2,203 | 2,187 | |||||||||||||||||||||
Sales Tax | 2,361 | 2,405 | 1,888 | 1,895 | |||||||||||||||||||||
Electric & Power | 1,880 | 1,914 | 1,673 | 1,688 | |||||||||||||||||||||
Lease | 1,356 | 1,362 | 1,155 | 1,063 | |||||||||||||||||||||
Other (9 sources) | 4,166 | 4,302 | 3,905 | 3,954 | |||||||||||||||||||||
Total Revenue Bonds | $ | 19,586 | $ | 20,095 | $ | 18,233 | $ | 17,931 |
LOANS_AND_LEASES_Tables
LOANS AND LEASES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
LOANS AND LEASES [Abstract] | |||||||||||||||||||||||||||||
Schedule of Participating Mortgage Loans | The composition of the loan and lease portfolio is as follows (dollars in thousands): | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Secured by residential, commercial and professional office properties, including construction and development | $ | 370,639 | $ | 318,383 | |||||||||||||||||||||||||
Secured by residential properties | 188,552 | 150,952 | |||||||||||||||||||||||||||
Secured by farm land | 145,039 | 108,504 | |||||||||||||||||||||||||||
Total real estate loans | 704,230 | 577,839 | |||||||||||||||||||||||||||
Agricultural | 27,746 | 25,180 | |||||||||||||||||||||||||||
Commercial and industrial | 113,771 | 103,262 | |||||||||||||||||||||||||||
Mortgage warehouse lines | 106,021 | 73,425 | |||||||||||||||||||||||||||
Consumer | 18,885 | 23,536 | |||||||||||||||||||||||||||
Total loans | 970,653 | 803,242 | |||||||||||||||||||||||||||
Deferred loan and lease origination cost, net | 1,651 | 1,522 | |||||||||||||||||||||||||||
Allowance for loan and lease losses | (11,248 | ) | (11,677 | ) | |||||||||||||||||||||||||
Loans, net | $ | 961,056 | $ | 793,087 | |||||||||||||||||||||||||
Credit Quality Classifications for Loan Balances | Credit quality classifications as of December 31, 2014 were as follows (dollars in thousands): | ||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Impaired | Total | |||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | 5,858 | $ | - | $ | - | $ | - | $ | 5,858 | |||||||||||||||||||
Other Construction/Land | 15,238 | 247 | - | 4,423 | 19,908 | ||||||||||||||||||||||||
1-4 family - closed-end | 105,398 | 833 | 918 | 7,110 | 114,259 | ||||||||||||||||||||||||
Equity Lines | 46,819 | 294 | 1,237 | 1,367 | 49,717 | ||||||||||||||||||||||||
Multi-family residential | 18,127 | 420 | - | 171 | 18,718 | ||||||||||||||||||||||||
Commercial real estate owner occupied | 191,495 | 18,694 | 3,845 | 4,620 | 218,654 | ||||||||||||||||||||||||
Commercial real estate Non-owner occupied | 114,317 | 4,250 | 631 | 12,879 | 132,077 | ||||||||||||||||||||||||
Farmland | 142,295 | 1,950 | 744 | 50 | 145,039 | ||||||||||||||||||||||||
Total Real Estate | 639,547 | 26,688 | 7,375 | 30,620 | 704,230 | ||||||||||||||||||||||||
Agricultural | 27,215 | 531 | - | - | 27,746 | ||||||||||||||||||||||||
Commercial and Industrial | 108,469 | 1,529 | 857 | 2,916 | 113,771 | ||||||||||||||||||||||||
Mortgage warehouse lines | 106,021 | - | - | - | 106,021 | ||||||||||||||||||||||||
Consumer loans | 15,752 | 222 | 23 | 2,888 | 18,885 | ||||||||||||||||||||||||
Total Gross Loans and Leases | $ | 897,004 | $ | 28,970 | $ | 8,255 | $ | 36,424 | $ | 970,653 | |||||||||||||||||||
Credit quality classifications as of December 31, 2013 were as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Impaired | Total | |||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | 1,720 | $ | - | $ | - | $ | - | $ | 1,720 | |||||||||||||||||||
Other Construction/Land | 18,243 | 334 | 203 | 6,751 | 25,531 | ||||||||||||||||||||||||
1-4 family - closed-end | 67,051 | 1,305 | 770 | 17,898 | 87,024 | ||||||||||||||||||||||||
Equity Lines | 51,019 | 254 | 1,429 | 1,021 | 53,723 | ||||||||||||||||||||||||
Multi-family residential | 8,059 | 426 | - | - | 8,485 | ||||||||||||||||||||||||
Commercial real estate owner occupied | 158,155 | 17,033 | 3,261 | 7,563 | 186,012 | ||||||||||||||||||||||||
Commercial real estate Non-owner occupied | 89,475 | 3,630 | 240 | 13,495 | 106,840 | ||||||||||||||||||||||||
Farmland | 105,623 | 1,780 | 819 | 282 | 108,504 | ||||||||||||||||||||||||
Total Real Estate | 499,345 | 24,762 | 6,722 | 47,010 | 577,839 | ||||||||||||||||||||||||
Agricultural | 24,178 | 532 | - | 470 | 25,180 | ||||||||||||||||||||||||
Commercial and Industrial | 93,224 | 3,358 | 1,236 | 5,444 | 103,262 | ||||||||||||||||||||||||
Mortgage warehouse lines | 73,425 | - | - | - | 73,425 | ||||||||||||||||||||||||
Consumer loans | 19,387 | 478 | 208 | 3,463 | 23,536 | ||||||||||||||||||||||||
Total Gross Loans and Leases | $ | 709,559 | $ | 29,130 | $ | 8,166 | $ | 56,387 | $ | 803,242 | |||||||||||||||||||
Allowance for Credit Losses and Recorded Investment in Financing Receivables | The following tables present the activity in the allowance for loan losses and the recorded investment in loans and impairment method by portfolio segment for each of the years ending December 31, 2014, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||||||
Commercial and | |||||||||||||||||||||||||||||
Real Estate | Agricultural | Industrial(1) | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 8,260 | $ | 19 | $ | 6,396 | $ | 2,608 | $ | - | $ | 17,283 | |||||||||||||||||
Charge-offs | (11,108 | ) | (634 | ) | (4,468 | ) | (2,568 | ) | - | (18,778 | ) | ||||||||||||||||||
Recoveries | 302 | - | 578 | 278 | - | 1,158 | |||||||||||||||||||||||
Provision | 10,580 | 873 | 961 | 1,796 | - | 14,210 | |||||||||||||||||||||||
Balance, December 31, 2012 | 8,034 | 258 | 3,467 | 2,114 | - | 13,873 | |||||||||||||||||||||||
Charge-offs | (4,205 | ) | (473 | ) | (1,668 | ) | (1,917 | ) | - | (8,263 | ) | ||||||||||||||||||
Recoveries | 618 | - | 802 | 297 | - | 1,717 | |||||||||||||||||||||||
Provision | 1,097 | 1,193 | 1,186 | 623 | 251 | 4,350 | |||||||||||||||||||||||
Balance, December 31, 2013 | 5,544 | 978 | 3,787 | 1,117 | 251 | 11,677 | |||||||||||||||||||||||
Charge-offs | (1,629 | ) | (124 | ) | (625 | ) | (1,837 | ) | - | (4,215 | ) | ||||||||||||||||||
Recoveries | 1,913 | 6 | 801 | 716 | - | 3,436 | |||||||||||||||||||||||
Provision | 415 | 126 | (2,019 | ) | 1,769 | 59 | 350 | ||||||||||||||||||||||
Balance, December 31, 2014 | $ | 6,243 | $ | 986 | $ | 1,944 | $ | 1,765 | $ | 310 | $ | 11,248 | |||||||||||||||||
-1 | Includes mortgage warehouse lines | ||||||||||||||||||||||||||||
Loans evaluated for impairment: | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | Individually | Collectively | ||||||||||||||||||||||||
Real estate | $ | 30,620 | $ | 673,610 | $ | 47,010 | $ | 530,829 | $ | 66,133 | $ | 479,656 | |||||||||||||||||
Agricultural | - | 27,746 | 470 | 24,710 | 663 | 21,819 | |||||||||||||||||||||||
Commercial and Industrial (1) | 2,916 | 216,876 | 5,444 | 171,243 | 7,018 | 275,634 | |||||||||||||||||||||||
Consumer | 2,888 | 15,997 | 3,463 | 20,073 | 4,348 | 24,524 | |||||||||||||||||||||||
Total loans | $ | 36,424 | $ | 934,229 | $ | 56,387 | $ | 746,855 | $ | 78,162 | $ | 801,633 | |||||||||||||||||
(1) Includes mortgage warehouse lines | |||||||||||||||||||||||||||||
Reserves based on method of evaluation for impairment: | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||
Specific | General | Specific | General | Specific | General | ||||||||||||||||||||||||
Real estate | $ | 3,864 | $ | 2,379 | $ | 2,867 | $ | 2,677 | $ | 4,180 | $ | 3,854 | |||||||||||||||||
Agricultural | - | 986 | 126 | 852 | 28 | 230 | |||||||||||||||||||||||
Commercial and Industrial (1) | 916 | 1,028 | 1,925 | 1,862 | 2,039 | 1,428 | |||||||||||||||||||||||
Consumer | 668 | 1,097 | 431 | 686 | 878 | 1,236 | |||||||||||||||||||||||
Unallocated | - | 310 | - | 251 | - | - | |||||||||||||||||||||||
Total loan loss reserves | $ | 5,448 | $ | 5,800 | $ | 5,349 | $ | 6,328 | $ | 7,125 | $ | 6,748 | |||||||||||||||||
(1) Includes mortgage warehouse lines | |||||||||||||||||||||||||||||
Aging of Loan Balances by Number of Days Past Due | The following tables present the recorded investment in nonaccrual loans and loans past due over 30 days as of December 31, 2014 and December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | 90 Days Or | Total | |||||||||||||||||||||||||||
30-59 Days | 60-89 Days | More Past | Financing | Non-Accrual | |||||||||||||||||||||||||
Past Due | Past Due | Due(2) | Total Past Due | Current | Receivables | Loans(1) | |||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | 332 | $ | - | $ | 332 | $ | 5,526 | $ | 5,858 | $ | - | |||||||||||||||
Other Construction/Land | 93 | 59 | 3,253 | 3,405 | 16,503 | 19,908 | 3,547 | ||||||||||||||||||||||
1-4 family - closed-end | 1,125 | 597 | 2,874 | 4,596 | 109,663 | 114,259 | 3,042 | ||||||||||||||||||||||
Equity Lines | 98 | 44 | 214 | 356 | 49,361 | 49,717 | 1,049 | ||||||||||||||||||||||
Multi-family residential | 185 | - | 171 | 356 | 18,362 | 18,718 | 171 | ||||||||||||||||||||||
Commercial real estate owner occupied | 1,460 | 26 | 1,316 | 2,802 | 215,852 | 218,654 | 3,417 | ||||||||||||||||||||||
Commercial real estate Non-owner occupied | 604 | 294 | 6,953 | 7,851 | 124,226 | 132,077 | 7,754 | ||||||||||||||||||||||
Farmland | 997 | - | - | 997 | 144,042 | 145,039 | 51 | ||||||||||||||||||||||
Total Real Estate Loans | 4,562 | 1,352 | 14,781 | 20,695 | 683,535 | 704,230 | 19,031 | ||||||||||||||||||||||
Agricultural | 618 | - | - | 618 | 27,128 | 27,746 | - | ||||||||||||||||||||||
Commercial and Industrial | 1,346 | 153 | 39 | 1,538 | 112,233 | 113,771 | 821 | ||||||||||||||||||||||
Mortage warehouse lines | - | - | - | - | 106,021 | 106,021 | - | ||||||||||||||||||||||
Consumer loans | 136 | 17 | - | 153 | 18,732 | 18,885 | 826 | ||||||||||||||||||||||
Total Gross Loans and Leases | $ | 6,662 | $ | 1,522 | $ | 14,820 | $ | 23,004 | $ | 947,649 | $ | 970,653 | $ | 20,678 | |||||||||||||||
-1 | Included in Total Financing Receivables | ||||||||||||||||||||||||||||
-2 | As of December 31, 2014 there were no loans over 90 days past due and still accruing. | ||||||||||||||||||||||||||||
31-Dec-13 | 90 Days Or | Total | |||||||||||||||||||||||||||
30-59 Days | 60-89 Days | More Past | Financing | Non-Accrual | |||||||||||||||||||||||||
Past Due | Past Due | Due(2) | Total Past Due | Current | Receivables | Loans(1) | |||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | 1,720 | $ | 1,720 | $ | - | |||||||||||||||
Other Construction/Land | 294 | - | 116 | 410 | 25,121 | 25,531 | 5,528 | ||||||||||||||||||||||
1-4 family - closed-end | 2,181 | 300 | 171 | 2,652 | 84,372 | 87,024 | 13,168 | ||||||||||||||||||||||
Equity Lines | 98 | - | 288 | 386 | 53,337 | 53,723 | 778 | ||||||||||||||||||||||
Multi-family residential | - | - | - | 8,485 | 8,485 | - | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
owner occupied | 1,917 | 144 | 2,011 | 4,072 | 181,940 | 186,012 | 5,516 | ||||||||||||||||||||||
Commercial real estate Non-owner occupied | - | - | 7,667 | 7,667 | 99,173 | 106,840 | 8,058 | ||||||||||||||||||||||
Farmland | 331 | - | - | 331 | 108,173 | 108,504 | 282 | ||||||||||||||||||||||
Total Real Estate Loans | 4,821 | 444 | 10,253 | 15,518 | 562,321 | 577,839 | 33,330 | ||||||||||||||||||||||
Agricultural | 892 | 327 | 125 | 1,344 | 23,836 | 25,180 | 470 | ||||||||||||||||||||||
Commercial and Industrial | 1,318 | 587 | 1,298 | 3,203 | 100,059 | 103,262 | 2,622 | ||||||||||||||||||||||
Mortgage warehouse lines | - | - | - | - | 73,425 | 73,425 | - | ||||||||||||||||||||||
Consumer loans | 181 | - | - | 181 | 23,355 | 23,536 | 992 | ||||||||||||||||||||||
Total Gross Loans and Leases | $ | 7,212 | $ | 1,358 | $ | 11,676 | $ | 20,246 | $ | 782,996 | $ | 803,242 | $ | 37,414 | |||||||||||||||
-1 | Included in Total Financing Receivables | ||||||||||||||||||||||||||||
-2 | As of December 31, 2013 there were no loans over 90 days past due and still accruing. | ||||||||||||||||||||||||||||
Impaired Loans | Individually impaired loans as of December 31, 2014 and December 31, 2013 were as follows (dollars in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Average Recorded | Interest Income | ||||||||||||||||||||||||||
Balance(1) | Investment(2) | Related Allowance | Investment | Recognized(3) | |||||||||||||||||||||||||
With an Allowance Recorded | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Other Construction/Land | 1,155 | 1,078 | 179 | 1,193 | 70 | ||||||||||||||||||||||||
1-4 Family - closed-end | 4,167 | 4,167 | 288 | 4,276 | 258 | ||||||||||||||||||||||||
Equity Lines | 797 | 797 | 230 | 878 | 14 | ||||||||||||||||||||||||
Multifamily residential | 171 | 171 | 51 | 173 | - | ||||||||||||||||||||||||
Commercial real estate- owner occupied | 2,791 | 2,681 | 1,385 | 3,069 | 60 | ||||||||||||||||||||||||
Commercial real estate- non-owner occupied | 3,463 | 3,463 | 1,731 | 3,545 | 263 | ||||||||||||||||||||||||
Farmland | - | - | - | - | - | ||||||||||||||||||||||||
Total Real Estate | 12,544 | 12,357 | 3,864 | 13,134 | 665 | ||||||||||||||||||||||||
Agricultural | - | - | - | - | - | ||||||||||||||||||||||||
Commercial and Industrial | 2,910 | 2,898 | 916 | 3,046 | 123 | ||||||||||||||||||||||||
Consumer loans | 2,790 | 2,788 | 668 | 3,115 | 150 | ||||||||||||||||||||||||
18,244 | 18,043 | 5,448 | 19,295 | 938 | |||||||||||||||||||||||||
With no Related Allowance Recorded | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Other Construction/Land | 3,345 | 3,345 | - | 4,143 | - | ||||||||||||||||||||||||
1-4 Family - closed-end | 2,943 | 2,943 | - | 9,186 | - | ||||||||||||||||||||||||
Equity Lines | 609 | 570 | - | 611 | - | ||||||||||||||||||||||||
Multifamily residential | - | - | - | - | - | ||||||||||||||||||||||||
Commercial real estate- owner occupied | 2,915 | 1,939 | - | 3,046 | - | ||||||||||||||||||||||||
Commercial real estate- non-owner occupied | 9,563 | 9,416 | - | 10,306 | 118 | ||||||||||||||||||||||||
Farmland | 51 | 50 | - | 52 | - | ||||||||||||||||||||||||
Total Real Estate | 19,426 | 18,263 | - | 27,344 | 118 | ||||||||||||||||||||||||
Agricultural | - | - | - | - | - | ||||||||||||||||||||||||
Commercial and Industrial | 35 | 18 | - | 81 | - | ||||||||||||||||||||||||
Consumer loans | 275 | 100 | - | 347 | - | ||||||||||||||||||||||||
19,736 | 18,381 | - | 27,772 | 118 | |||||||||||||||||||||||||
Total | $ | 37,980 | $ | 36,424 | $ | 5,448 | $ | 47,067 | $ | 1,056 | |||||||||||||||||||
-1 | Contractual principal balance due from customer. | ||||||||||||||||||||||||||||
-2 | Principal balance on Company's books, less any direct charge offs. | ||||||||||||||||||||||||||||
-3 | Interest income is recognized on performing balances on a regular accrual basis. | ||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Average Recorded | Interest Income | ||||||||||||||||||||||||||
Balance(1) | Investment(2) | Related Allowance | Investment | Recognized(3) | |||||||||||||||||||||||||
With an Allowance Recorded | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Other Construction/Land | 2,972 | 2,972 | 502 | 3,000 | 98 | ||||||||||||||||||||||||
1-4 Family - closed-end | 13,522 | 13,522 | 1,324 | 13,630 | 260 | ||||||||||||||||||||||||
Equity Lines | 528 | 528 | 123 | 530 | 13 | ||||||||||||||||||||||||
Multifamily residential | - | - | - | - | - | ||||||||||||||||||||||||
Commercial real estate- owner occupied | 2,047 | 2,047 | 217 | 2,069 | 135 | ||||||||||||||||||||||||
Commercial real estate- non-owner occupied | 3,715 | 3,715 | 701 | 3,813 | 238 | ||||||||||||||||||||||||
Farmland | - | - | - | - | - | ||||||||||||||||||||||||
Total Real Estate | 22,784 | 22,784 | 2,867 | 23,042 | 744 | ||||||||||||||||||||||||
Agricultural | 125 | 125 | 126 | 131 | - | ||||||||||||||||||||||||
Commercial and Industrial | 4,580 | 4,345 | 1,925 | 4,496 | 131 | ||||||||||||||||||||||||
Consumer loans | 3,411 | 3,411 | 431 | 3,591 | 172 | ||||||||||||||||||||||||
30,900 | 30,665 | 5,349 | 31,260 | 1,047 | |||||||||||||||||||||||||
With no Related Allowance Recorded | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
1-4 family residential construction | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Other Construction/Land | 4,176 | 3,779 | - | 3,885 | - | ||||||||||||||||||||||||
1-4 Family - closed-end | 4,655 | 4,376 | - | 4,687 | 1 | ||||||||||||||||||||||||
Equity Lines | 565 | 493 | - | 493 | - | ||||||||||||||||||||||||
Multifamily residential | - | - | - | - | - | ||||||||||||||||||||||||
Commercial real estate- owner occupied | 7,436 | 5,516 | - | 5,568 | - | ||||||||||||||||||||||||
Commercial real estate- non-owner occupied | 10,077 | 9,780 | - | 9,820 | 115 | ||||||||||||||||||||||||
Farmland | 282 | 282 | - | 290 | - | ||||||||||||||||||||||||
Total Real Estate | 27,191 | 24,226 | - | 24,743 | 116 | ||||||||||||||||||||||||
Agricultural | 345 | 345 | - | 837 | - | ||||||||||||||||||||||||
Commercial and Industrial | 1,249 | 1,099 | - | 1,607 | 57 | ||||||||||||||||||||||||
Consumer loans | 241 | 52 | - | 77 | - | ||||||||||||||||||||||||
29,026 | 25,722 | - | 27,264 | 173 | |||||||||||||||||||||||||
Total | $ | 59,926 | $ | 56,387 | $ | 5,349 | $ | 58,524 | $ | 1,220 | |||||||||||||||||||
(1)Contractual principal balance due from customer. | |||||||||||||||||||||||||||||
(2)Principal balance on Company's books, less any direct charge offs. | |||||||||||||||||||||||||||||
(3)Interest income is recognized on performing balances on a regular accrual basis. | |||||||||||||||||||||||||||||
Schedule Of Loans and Leases Receivable Impaired Interest Income and Lost From Nonaccrual Loans | The following is a summary of interest income from non-accrual loans in the portfolio at year-end that was not recognized (dollars in thousands): | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Interest that would have been recorded under the loans' original terms | $ | 1,666 | $ | 3,209 | $ | 4,084 | |||||||||||||||||||||||
Less gross interest recorded | 389 | 304 | 2,088 | ||||||||||||||||||||||||||
Foregone interest | $ | 1,277 | $ | 2,905 | $ | 1,996 | |||||||||||||||||||||||
Troubled Debt Restructurings, by Type of Loan Modification | The following tables present troubled debt restructurings by type of modification during the period ending December 31, 2014 and December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||
Rate & | Term & | Rate, Term | |||||||||||||||||||||||||||
Rate | Term | Interest Only | Term | Interest Only | & Interest Only | ||||||||||||||||||||||||
31-Dec-14 | Modification | Modification | Modification | Modification | Modification | Modification | Total | ||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | $ | - | $ | - | $ | - | $ | 40 | $ | - | $ | - | $ | 40 | |||||||||||||||
1-4 family - closed-end | 41 | 13 | - | - | - | - | 54 | ||||||||||||||||||||||
Equity Lines | - | 945 | - | 29 | - | - | 974 | ||||||||||||||||||||||
Commercial real estate owner occupied | 279 | 123 | - | - | - | - | 402 | ||||||||||||||||||||||
Commercial real estate Non-owner occupied | - | - | - | - | - | - | - | ||||||||||||||||||||||
Total Real Estate Loans | 320 | 1,081 | - | 69 | - | - | 1,470 | ||||||||||||||||||||||
Agricultural | - | - | - | - | - | - | - | ||||||||||||||||||||||
Commercial and Industrial | - | 153 | - | 28 | 30 | - | 211 | ||||||||||||||||||||||
Consumer Loans | - | 9 | - | 103 | - | - | 112 | ||||||||||||||||||||||
$ | 320 | $ | 1,243 | $ | - | $ | 200 | $ | 30 | $ | - | $ | 1,793 | ||||||||||||||||
Rate, Term | |||||||||||||||||||||||||||||
Rate & | Term & | & Interest | |||||||||||||||||||||||||||
Rate | Term | Interest Only | Term | Interest Only | Only | ||||||||||||||||||||||||
31-Dec-13 | Modification | Modification | Modification | Modification | Modification | Modification | Total | ||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | $ | - | $ | 416 | $ | - | $ | - | $ | - | $ | - | $ | 416 | |||||||||||||||
1-4 family - closed-end | - | 3,338 | - | 238 | - | 102 | 3,678 | ||||||||||||||||||||||
Equity Lines | - | - | 40 | - | - | - | 40 | ||||||||||||||||||||||
Commercial real estate owner occupied | - | - | - | 557 | - | - | 557 | ||||||||||||||||||||||
Commercial real estate Non-owner occupied | - | - | - | - | - | - | - | ||||||||||||||||||||||
Total Real Estate Loans | - | 3,754 | 40 | 795 | - | 102 | 4,691 | ||||||||||||||||||||||
Agricultural | - | - | - | - | - | - | - | ||||||||||||||||||||||
Commercial and Industrial | - | 1,563 | - | 308 | - | - | 1,871 | ||||||||||||||||||||||
Consumer Loans | - | 469 | - | - | - | 92 | 561 | ||||||||||||||||||||||
$ | - | $ | 5,786 | $ | 40 | $ | 1,103 | $ | - | $ | 194 | $ | 7,123 | ||||||||||||||||
Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods | The following tables present loans by class modified as troubled debt restructurings including any subsequent defaults during the period ending December 31, 2014 and December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | Reserve | |||||||||||||||||||||||||||
31-Dec-14 | Number of Loans | Recorded Investment | Recorded Investment | Difference(1) | |||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | 1 | $ | 40 | $ | 40 | $ | - | ||||||||||||||||||||||
1-4 family - closed-end | 2 | 54 | 54 | - | |||||||||||||||||||||||||
Equity Lines | 11 | 974 | 974 | 364 | |||||||||||||||||||||||||
Commercial real estate owner occupied | 2 | 402 | 402 | - | |||||||||||||||||||||||||
Commercial real estate non-owner occupied | 0 | - | - | - | |||||||||||||||||||||||||
Total Real Estate Loans | 1,470 | 1,470 | 364 | ||||||||||||||||||||||||||
Agricultural | 0 | - | - | - | |||||||||||||||||||||||||
Commercial and Industrial | 9 | 211 | 211 | 75 | |||||||||||||||||||||||||
Consumer Loans | 4 | 112 | 112 | 15 | |||||||||||||||||||||||||
$ | 1,793 | $ | 1,793 | $ | 454 | ||||||||||||||||||||||||
-1 | This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. | ||||||||||||||||||||||||||||
31-Dec-14 | Subsequent Defaults | ||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||
Number of Loans | Investment | Charge-Offs | |||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | 4 | $ | 1,768 | $ | 77 | ||||||||||||||||||||||||
1-4 family - closed-end | 2 | 8,305 | - | ||||||||||||||||||||||||||
Equity Lines | 0 | - | - | ||||||||||||||||||||||||||
Commercial real estate- owner occupied | 2 | 937 | 31 | ||||||||||||||||||||||||||
Commercial real estate- non owner occupied | 0 | - | - | ||||||||||||||||||||||||||
Total Real Estate Loans | 11,010 | 108 | |||||||||||||||||||||||||||
Agricultural | 0 | - | - | ||||||||||||||||||||||||||
Commercial and Industrial | 2 | 129 | 2 | ||||||||||||||||||||||||||
Consumer Loans | 2 | 133 | 58 | ||||||||||||||||||||||||||
$ | 11,272 | $ | 168 | ||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | Reserve | |||||||||||||||||||||||||||
31-Dec-13 | Number of Loans | Recorded Investment | Recorded Investment | Difference(1) | |||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | 2 | $ | 418 | $ | 416 | $ | 38 | ||||||||||||||||||||||
1-4 family - closed-end | 8 | 3,679 | 3,678 | 20 | |||||||||||||||||||||||||
Equity Lines | 1 | 40 | 40 | 40 | |||||||||||||||||||||||||
Commercial real estate owner occupied | 1 | 557 | 557 | - | |||||||||||||||||||||||||
Commercial real estate non-owner occupied | 0 | - | - | - | |||||||||||||||||||||||||
Total Real Estate Loans | 4,694 | 4,691 | 98 | ||||||||||||||||||||||||||
Agricultural | 0 | - | - | - | |||||||||||||||||||||||||
Commercial and Industrial | 8 | 1,858 | 1,871 | 257 | |||||||||||||||||||||||||
Consumer Loans | 13 | 561 | 561 | 54 | |||||||||||||||||||||||||
$ | 7,113 | $ | 7,123 | $ | 409 | ||||||||||||||||||||||||
-1 | This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. | ||||||||||||||||||||||||||||
31-Dec-13 | Subsequent Defaults | ||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||
Number of Loans | Investment | Charge-Offs | |||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||
Other Construction/Land | 2 | $ | 162 | $ | 47 | ||||||||||||||||||||||||
1-4 family - closed-end | 2 | 779 | 133 | ||||||||||||||||||||||||||
Equity Lines | 0 | - | - | ||||||||||||||||||||||||||
Commercial real estate- owner occupied | 1 | 308 | 245 | ||||||||||||||||||||||||||
Commercial real estate- non owner occupied | 0 | - | - | ||||||||||||||||||||||||||
Total Real Estate Loans | 1,249 | 425 | |||||||||||||||||||||||||||
Agricultural | 0 | - | - | ||||||||||||||||||||||||||
Commercial and Industrial | 9 | 568 | 373 | ||||||||||||||||||||||||||
Consumer Loans | 7 | 181 | 132 | ||||||||||||||||||||||||||
$ | 1,998 | $ | 930 |
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PREMISES AND EQUIPMENT [Abstract] | |||||||||||||
Property, Plant and Equipment | Premises and equipment at cost consisted of the following (dollars in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Land | $ | 3,019 | $ | 2,607 | |||||||||
Buildings and improvements | 16,348 | 15,818 | |||||||||||
Furniture, fixtured and equipment | 18,397 | 17,829 | |||||||||||
Leasehold improvements | 10,850 | 10,536 | |||||||||||
48,614 | 46,790 | ||||||||||||
Less accumulated depreciation and amortization | 26,808 | 26,402 | |||||||||||
Construction in progress | 47 | 5 | |||||||||||
$ | 21,853 | $ | 20,393 | ||||||||||
Schedule of rent commitments, before considering renewal options | Rent commitments, before considering renewal options that generally are present, were as follows: | ||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 1,143,000 | |||||||||||
2016 | 1,095,000 | ||||||||||||
2017 | 1,004,000 | ||||||||||||
2018 | 751,000 | ||||||||||||
2019 | 748,000 | ||||||||||||
Thereafter | 3,088,000 | ||||||||||||
$ | 7,829,000 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||
Schedule of change in goodwill | The change in goodwill during the year is as follows (dollars in thousands): | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Balance at January 1 | $ | 5,544 | $ | 5,544 | $ | 5,544 | |||||||||||||||||||
Acquired goodwill | 1,364 | - | - | ||||||||||||||||||||||
Impairment | - | - | - | ||||||||||||||||||||||
Balance at December 31 | $ | 6,908 | $ | 5,544 | $ | 5,544 | |||||||||||||||||||
Schedule of acquired intangible assets | Acquired intangible assets were as follows at year-end (dollars in thousands): | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||||||
Core deposit intangibles | $ | 1,075 | $ | 11 | $ | - | $ | - | |||||||||||||||||
Schedule of estimated amortization expense for each of the next five years and thereafter | Estimated amortization expense for each of the next five years and thereafter (dollars in thousands): | ||||||||||||||||||||||||
2015 | $ | 132 | |||||||||||||||||||||||
2016 | $ | 132 | |||||||||||||||||||||||
2017 | $ | 132 | |||||||||||||||||||||||
2018 | $ | 132 | |||||||||||||||||||||||
2019 | $ | 132 | |||||||||||||||||||||||
Thereafter | $ | 404 | |||||||||||||||||||||||
$ | 1,064 |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
OTHER ASSETS [Abstract] | |||||||||||||
Schedule of Other Assets | Other assets consisted of the following (dollars in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Accrued interest receivable | $ | 5,852 | $ | 4,990 | |||||||||
Deferred tax assets | 12,810 | 12,286 | |||||||||||
Prepaid taxes | - | 2,787 | |||||||||||
Investment in limited partnerships | 7,276 | 9,204 | |||||||||||
Federal Home Loan Bank stock, at cost | 6,631 | 5,581 | |||||||||||
Other | 4,912 | 5,613 | |||||||||||
$ | 37,481 | $ | 40,461 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
DEPOSITS [Abstract] | |||||||||||||
Schedule Of Interest Bearing Deposit Liabilities Domestic By Component | Interest-bearing deposits consisted of the following (dollars in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Interest Bearing Demand Deposits | $ | 110,840 | $ | 82,408 | |||||||||
NOW | 275,494 | 200,313 | |||||||||||
Savings | 167,655 | 144,162 | |||||||||||
Money Market | 117,907 | 73,132 | |||||||||||
CDAR's, under $250,000 | 11,299 | 13,356 | |||||||||||
Time, under $250,000 | 151,719 | 152,103 | |||||||||||
Time, $250,000 or more | 135,884 | 132,708 | |||||||||||
Brokered Deposits | 5,000 | 10,000 | |||||||||||
$ | 975,798 | $ | 808,182 | ||||||||||
Schedule Of Maturities Of Tmes Deposit | Aggregate annual maturities of time deposits were as follows (dollars in thousands): | ||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 295,099 | |||||||||||
2016 | $ | 4,075 | |||||||||||
2017 | $ | 2,597 | |||||||||||
2018 | $ | 1,173 | |||||||||||
2019 | $ | 304 | |||||||||||
Thereafter | $ | 654 | |||||||||||
$ | 303,902 | ||||||||||||
Schedule Of Interest Expense Recognized In Interest Bearing Deposit | Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest Bearing Demand Deposits | $ | 283 | $ | 281 | $ | 257 | |||||||
NOW | 338 | 359 | 556 | ||||||||||
Savings | 241 | 285 | 241 | ||||||||||
Money Market | 80 | 94 | 127 | ||||||||||
CDAR's | 11 | 36 | 52 | ||||||||||
Time Deposits | 1,017 | 1,243 | 1,773 | ||||||||||
Brokered Deposits | 94 | 157 | 202 | ||||||||||
$ | 2,064 | $ | 2,455 | $ | 3,208 |
OTHER_BORROWING_ARRANGEMENTS_T
OTHER BORROWING ARRANGEMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
OTHER BORROWING ARRANGEMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt | At year end, short-term borrowings consisted of the following (dollars in thousands): | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Average | Weighted | Average | Weighted | ||||||||||||||||||||||||||||||||||
balance | average | balance | average | ||||||||||||||||||||||||||||||||||
outstanding | Amount | interest rate | outstanding | Amount | interest rate | ||||||||||||||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||||||||||
Repurchase agreements | $ | 5,936 | $ | 7,251 | 0.35 | % | $ | 2,876 | $ | 5,974 | 0.45 | % | |||||||||||||||||||||||||
Overnight Federal Home Loan | |||||||||||||||||||||||||||||||||||||
Bank advances | 3,502 | 18,200 | 0.11 | % | 3,497 | - | 0.17 | % | |||||||||||||||||||||||||||||
$ | 9,438 | $ | 25,451 | $ | 6,373 | $ | 5,974 | ||||||||||||||||||||||||||||||
Schedule of long-term borrowings | At year end, long-term borrowings consisted of the following (dollars in thousands): | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||||||||||||||
Fixed | average | average | |||||||||||||||||||||||||||||||||||
Amount | rate | interest rate | Amount | Fixed rate | interest rate | ||||||||||||||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances, maturing 2015 | $ | 4,000 | 0.29% | $ | - | - | |||||||||||||||||||||||||||||||
Federal Home Loan Bank advances, maturing 2016 | 2,000 | 0.54% | - | - | |||||||||||||||||||||||||||||||||
$ | 6,000 | 0.37% | $ | - | - |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes follows (dollars in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal: | |||||||||||||
Current | $ | 5,738 | $ | 563 | $ | 220 | |||||||
Deferred | (1,281 | ) | 1,842 | (647 | ) | ||||||||
4,457 | 2,405 | (427 | ) | ||||||||||
State: | |||||||||||||
Current | 1,604 | 170 | - | ||||||||||
Deferred | 130 | 518 | 83 | ||||||||||
1,734 | 688 | 83 | |||||||||||
$ | 6,191 | $ | 3,093 | $ | (344 | ) | |||||||
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan and lease losses | $ | 4,877 | $ | 5,669 | |||||||||
Foreclosed assets | 1,208 | 1,779 | |||||||||||
Deferred compensation | 4,227 | 4,112 | |||||||||||
Accrued reserves | 613 | 594 | |||||||||||
Non accrual loans | 245 | 1,211 | |||||||||||
Other than temporary impairment charge | 565 | 576 | |||||||||||
Credit carryforward | 5,676 | 3,089 | |||||||||||
Net operating loss carryforward | 1,709 | - | |||||||||||
Other | 1,207 | 153 | |||||||||||
Total deferred tax assets | 20,327 | 17,183 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Premises and equipment | (726 | ) | (589 | ) | |||||||||
Deferred loan costs | (2,442 | ) | (2,254 | ) | |||||||||
Unrealized gain on securities available-for-sale | (3,011 | ) | (299 | ) | |||||||||
Other | (1,338 | ) | (1,755 | ) | |||||||||
Total deferred tax liabilities | (7,517 | ) | (4,897 | ) | |||||||||
Net deferred tax assets | $ | 12,810 | $ | 12,286 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | The expense for income taxes differs from amounts computed by applying the statutory Federal income tax rates to income before income taxes. The significant items comprising these differences consisted of the following (dollars in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense at Federal statutory rate | $ | 7,501 | $ | 5,597 | $ | 2,666 | |||||||
Increase (decrease) resulting from: | |||||||||||||
State franchise tax expense, net of Federal tax effect | 1,116 | 414 | - | ||||||||||
Tax exempt income | (1,018 | ) | (920 | ) | (1,388 | ) | |||||||
Affordable housing tax credits | (1,006 | ) | (1,257 | ) | (1,639 | ) | |||||||
Other | (402 | ) | (741 | ) | 17 | ||||||||
$ | 6,191 | $ | 3,093 | $ | (344 | ) | |||||||
Effective tax rate | 28.9 | % | 18.8 | % | (4.4 | %) |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||||||||
Financial Instruments Representing Off-Balance-Sheet Credit Risk | The following financial instruments represent off-balance-sheet credit risk (dollars in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Fixed-rate commitments to extend credit | $ | 83,416 | $ | 64,148 | ||||||||
Variable-rate commitments to extend credit | $ | 283,493 | $ | 356,559 | ||||||||
Standby letters of credit | $ | 6,787 | $ | 8,703 | ||||||||
Commercial and similar letters of credit | $ | 7,602 | $ | 8,070 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic Earnings Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (dollars in thousands) | $ | 15,240 | $ | 13,369 | $ | 8,185 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 14,001,958 | 14,155,927 | 14,103,805 | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 1.09 | $ | 0.94 | $ | 0.58 | ||||||||||||||||||||||||||||||||||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (dollars in thousands) | $ | 15,240 | $ | 13,369 | $ | 8,185 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 14,001,958 | 14,155,927 | 14,103,805 | |||||||||||||||||||||||||||||||||||||||||||||||||
Effect of dilutive stock options | 134,528 | 134,223 | 16,508 | |||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 14,136,486 | 14,290,150 | 14,120,313 | |||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.08 | $ | 0.94 | $ | 0.58 | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the Company's stock option activity, including options from the 1998 Plan, follows (shares in thousands, except exercise price): | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average | Intrinsic | Weighted Average | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Exercise Price | Value (1) | Shares | Exercise Price | Shares | Exercise Price | ||||||||||||||||||||||||||||||||||||||||||||||
Outstanding, beginning of year | 746 | $ | 14.65 | 927 | $ | 14.16 | 810 | $ | 14.97 | |||||||||||||||||||||||||||||||||||||||||||
Exercised | (95 | ) | $ | 11.28 | (111 | ) | $ | 9.87 | (5 | ) | $ | 9.45 | ||||||||||||||||||||||||||||||||||||||||
Granted | 50 | $ | 16.35 | - | $ | - | 189 | $ | 10.21 | |||||||||||||||||||||||||||||||||||||||||||
Canceled | (69 | ) | $ | 14.2 | (70 | ) | $ | 15.75 | (67 | ) | $ | 13.08 | ||||||||||||||||||||||||||||||||||||||||
Outstanding, end of year | 632 | $ | 15.34 | $ | 2,850 | 746 | $ | 14.65 | 927 | $ | 14.16 | |||||||||||||||||||||||||||||||||||||||||
Exercisable, end of year (2) | 530 | $ | 16.25 | $ | 2,122 | 542 | $ | 16.3 | 504 | $ | 16.07 | |||||||||||||||||||||||||||||||||||||||||
Schedule of Options Indexed to Issuer's Equity | Information related to stock options during each year follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average grant-date fair value per share | $ | 2.67 | $ | - | $ | 3.86 | ||||||||||||||||||||||||||||||||||||||||||||||
Total intrinsic value of stock options exercised | $ | 468,000 | $ | 605,000 | $ | 9,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Total fair value of stock options vested | $ | 367,000 | $ | 583,000 | $ | 517,000 |
NONINTEREST_REVENUE_Tables
NON-INTEREST REVENUE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
NON-INTEREST REVENUE [Abstract] | |||||||||||||
Schedule of Other Nonoperating Income (Expense) | Non-interest revenue also includes one general category of “other income” of which the following are major components (dollars in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Included in other income: | |||||||||||||
Loss on limited partnerships | $ | (1,161 | ) | $ | (1,063 | ) | $ | (395 | ) | ||||
Dividends on Equity Investments | 453 | 356 | 67 | ||||||||||
Rental income on leases | - | 46 | 102 | ||||||||||
Other | 1,957 | 2,569 | 2,134 | ||||||||||
Total other non-interest income | $ | 1,249 | $ | 1,908 | $ | 1,908 |
OTHER_NONINTEREST_EXPENSE_Tabl
OTHER NON-INTEREST EXPENSE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
OTHER NON-INTEREST EXPENSE [Abstract] | |||||||||||||
Schedule of Other Non-interest Expense | Other non-interest expense consisted of the following (dollars in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Professional fees | $ | 3,354 | $ | 4,143 | $ | 3,454 | |||||||
Data processing | 2,716 | 1,987 | 1,807 | ||||||||||
Advertising and promotion | 2,205 | 1,960 | 1,771 | ||||||||||
Deposit services | 2,587 | 1,980 | 2,266 | ||||||||||
Stationery and supplies | 1,192 | 657 | 738 | ||||||||||
Telephone and data communication | 1,283 | 1,613 | 1,549 | ||||||||||
Loan and credit card processing | 1,113 | 1,327 | 419 | ||||||||||
Foreclosed assets (income) expense, net | (1,420 | ) | 1,202 | 4,914 | |||||||||
Postage | 775 | 713 | 718 | ||||||||||
Other | 1,230 | 1,039 | 1,905 | ||||||||||
Total other non-interest expense | $ | 15,035 | $ | 16,621 | $ | 19,541 |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||||||
Schedule of Related Party Transactions | The following is a summary of the aggregate activity involving related party borrowers (dollars in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 566 | $ | 629 | $ | 2,471 | |||||||
Disbursements | 13,843 | 543 | 625 | ||||||||||
Amounts repaid | (12,006 | ) | (606 | ) | (2,467 | ) | |||||||
Balance, end of year | $ | 2,403 | $ | 566 | $ | 629 | |||||||
Undisbursed commitments to related parties | $ | 1,428 | $ | 460 | $ | 330 |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
FAIR VALUE [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, including financial liabilities for which the Company has elected the fair value option, are summarized below (dollars in thousands): | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014, Using | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Unobservable | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Inputs | Realized | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | Gain/(Loss) | |||||||||||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||||
US Government Agencies | $ | - | $ | 27,270 | $ | - | $ | 27,270 | $ | - | |||||||||||||||||||||||||||
Mortgage-backed securities | - | 381,442 | - | 381,442 | - | ||||||||||||||||||||||||||||||||
State and political subdivisions | - | 100,949 | - | 100,949 | - | ||||||||||||||||||||||||||||||||
Equity securities | 2,222 | - | - | 2,222 | - | ||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,222 | $ | 509,661 | $ | - | $ | 511,883 | $ | - | |||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013, Using | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Unobservable | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Inputs | Realized | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | Gain/(Loss) | |||||||||||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||||
US Government Agencies | $ | - | $ | 5,304 | $ | - | $ | 5,304 | $ | - | |||||||||||||||||||||||||||
Mortgage-backed securities | - | 320,721 | - | 320,721 | - | ||||||||||||||||||||||||||||||||
State and political subdivisions | - | 96,563 | - | 96,563 | - | ||||||||||||||||||||||||||||||||
Equity securities | 2,456 | - | - | 2,456 | - | ||||||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 2,456 | $ | 422,588 | $ | - | $ | 425,044 | $ | - | |||||||||||||||||||||||||||
Schedule Of Fair Value Assets and Liabilities Measured On Non Recurring Basis | Assets and liabilities measured at fair market value on a non-recurring basis are summarized below (dollars in thousands): | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Significant | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||||||||||||||
Collateral dependent impaired loans | $ | - | $ | 4,791 | $ | - | $ | 4,791 | |||||||||||||||||||||||||||||
Foreclosed assets | $ | - | $ | 3,991 | $ | - | $ | 3,991 | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||||||||||||||||||
Active Markets for | Significant | Significant | |||||||||||||||||||||||||||||||||||
Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||||||||||||||
Collateral dependent impaired loans | $ | - | $ | 14,705 | $ | - | $ | 14,705 | |||||||||||||||||||||||||||||
Foreclosed assets | $ | - | $ | 8,185 | $ | - | $ | 8,185 |
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
BUSINESS COMBINATION [Abstract] | |||||
Summary of consideration paid and amounts of assets acquired and liabilities assumed | The following table summarizes the consideration paid for SCVB and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (dollars in thousands): | ||||
Consideration | |||||
Cash | $ | 15,338 | |||
Equity Instruments | - | ||||
Contingent Consideration | - | ||||
Fair value of total consideration transferred | $ | 15,338 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Cash and cash equivalents | $ | 15,852 | |||
Securities | 44,187 | ||||
Federal Home Loan Bank stock | 860 | ||||
Loans | 61,573 | ||||
Premises and equipment | 1,188 | ||||
Core deposit intangibles | 1,075 | ||||
Other assets | 5,719 | ||||
Total assets acquired | 130,454 | ||||
Deposits | 108,272 | ||||
Federal Home Loan Bank advances | 8,000 | ||||
Other liabilities | 208 | ||||
Total liabilities assumed | 116,480 | ||||
Total identifiable net assets | 13,974 | ||||
Goodwill | 1,364 | ||||
$ | 15,338 |
PARENT_ONLY_CONDENSED_FINANCIA1
PARENT ONLY CONDENSED FINANCIAL STATEMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PARENT ONLY CONDENSED FINANCIAL STATEMENTS [Abstract] | |||||||||||||
Schedule of Condensed Balance Sheet | BALANCE SHEETS | ||||||||||||
Years Ended December 31, 2014 and 2013 | |||||||||||||
(dollars in thousands) | |||||||||||||
2014 | 2013 | ||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 2,801 | $ | 1,337 | |||||||||
Investments in bank subsidiary | 212,719 | 208,326 | |||||||||||
Investment in Trust subsidiaries | 928 | 928 | |||||||||||
Investment in other securities | 2,193 | 2,421 | |||||||||||
Other assets | 14 | 310 | |||||||||||
$ | 218,655 | $ | 213,322 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Liabilities: | |||||||||||||
Other liabilities | $ | 636 | $ | 720 | |||||||||
Subordinated debentures | 30,928 | 30,928 | |||||||||||
Total liabilities | 31,564 | 31,648 | |||||||||||
Shareholders' equity: | |||||||||||||
Common stock | 66,758 | 68,428 | |||||||||||
Retained Earnings | 116,026 | 112,817 | |||||||||||
Accumulated other comprehensive income, net of taxes | 4,307 | 429 | |||||||||||
Total shareholders' equity | 187,091 | 181,674 | |||||||||||
$ | 218,655 | $ | 213,322 | ||||||||||
Schedule of Condensed Income Statement | STATEMENTS OF INCOME | ||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(dollars in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income: | |||||||||||||
Dividend from Subsidiary | $ | 15,500 | $ | 3,000 | $ | - | |||||||
Gain on sale of securities | 238 | - | - | ||||||||||
Other operating income | 80 | 16 | 10 | ||||||||||
Total Income | 15,818 | 3,016 | 10 | ||||||||||
Expense | |||||||||||||
Salaries and employee benefits | 347 | 349 | 254 | ||||||||||
Other expenses | 1,195 | 1,313 | 1,365 | ||||||||||
Total expenses | 1,542 | 1,662 | 1,619 | ||||||||||
Income (loss) before income taxes | 14,276 | 1,354 | (1,609 | ) | |||||||||
Income tax benefit | (690 | ) | (803 | ) | (663 | ) | |||||||
Income (loss) before equity in undistributed income of subsidiary | 14,966 | 2,157 | (946 | ) | |||||||||
Equity in undistributed income of subsidiary | 274 | 11,212 | 9,131 | ||||||||||
Net income | $ | 15,240 | $ | 13,369 | $ | 8,185 | |||||||
Schedule of Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS | ||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(dollars in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net Income | $ | 15,240 | $ | 13,369 | $ | 8,185 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Undistributed net income of subsidiary | (274 | ) | (11,212 | ) | (9,131 | ) | |||||||
Gain on sale of securities | (238 | ) | - | - | |||||||||
Decrease (increase) in other assets | 325 | (75 | ) | 583 | |||||||||
(Decrease) increase in other liabilities | (71 | ) | 106 | 50 | |||||||||
Tax benefit (provision) from equity based compensation | - | 29 | (36 | ) | |||||||||
Net provided for (used in) operating activities | 14,982 | 2,217 | (349 | ) | |||||||||
Cash flows from investing activities: | |||||||||||||
Purchases of securities | (37 | ) | - | - | |||||||||
Sales of securities | 402 | - | - | ||||||||||
Net cash provided by investing activities | 365 | - | - | ||||||||||
Cash flows from financing activities: | |||||||||||||
Stock options exercised | 1,075 | 1,088 | 51 | ||||||||||
Repurchase of common stock | (10,183 | ) | - | - | |||||||||
Dividends paid | (4,775 | ) | (3,680 | ) | (3,385 | ) | |||||||
Net cash used in by financing activities | (13,883 | ) | (2,592 | ) | (3,334 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 1,464 | (375 | ) | (3,683 | ) | ||||||||
Cash and cash equivalents, beginning of year | 1,337 | 1,712 | 5,395 | ||||||||||
Cash and cash equivalents, end of year | $ | 2,801 | $ | 1,337 | $ | 1,712 |
CONDENSED_QUARTERLY_RESULTS_OF1
CONDENSED QUARTERLY RESULTS OF OPERATIONS (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
CONDENSED QUARTERLY RESULTS OF OPERATIONS (Unaudited) [Abstract] | |||||||||||||||||
Schedule Of Results Of Operations Activities Disclosure | The following table sets forth the Company's unaudited results of operations for the four quarters of 2014 and 2013. In management's opinion, the results of operations reflect all adjustments (which include only recurring adjustments) necessary to present fairly the condensed results for such periods (dollars in thousands, except per share data). | ||||||||||||||||
2014 Quarter Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
Interest income | $ | 14,509 | $ | 13,978 | $ | 13,682 | $ | 12,952 | |||||||||
Interest expense | 641 | 686 | 732 | 737 | |||||||||||||
Net interest income | 13,868 | 13,292 | 12,950 | 12,215 | |||||||||||||
Provision for loan and lease losses | - | - | 200 | 150 | |||||||||||||
Non-interest income | 4,321 | 3,785 | 4,018 | 3,707 | |||||||||||||
Non-interest expense | 12,889 | 11,750 | 11,008 | 10,728 | |||||||||||||
Net income before taxes | 5,300 | 5,327 | 5,760 | 5,044 | |||||||||||||
Provision for taxes | 1,647 | 1,776 | 1,523 | 1,245 | |||||||||||||
Net income | $ | 3,653 | $ | 3,551 | $ | 4,237 | $ | 3,799 | |||||||||
Diluted earnings per share | $ | 0.26 | $ | 0.25 | $ | 0.31 | $ | 0.26 | |||||||||
Cash dividend per share | $ | 0.09 | $ | 0.09 | $ | 0.08 | $ | 0.08 | |||||||||
2013 Quarter Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
Interest income | $ | 13,188 | $ | 12,791 | $ | 13,090 | $ | 12,716 | |||||||||
Interest expense | 743 | 790 | 815 | 873 | |||||||||||||
Net interest income | 12,445 | 12,001 | 12,275 | 11,843 | |||||||||||||
Provision for loan and lease losses | 1,500 | 800 | 450 | 1,600 | |||||||||||||
Non-interest income | 4,607 | 4,319 | 4,022 | 4,115 | |||||||||||||
Non-interest expense | 10,788 | 11,490 | 10,717 | 11,820 | |||||||||||||
Net income before taxes | 4,764 | 4,030 | 5,130 | 2,538 | |||||||||||||
Provision for taxes | 895 | 663 | 1,331 | 204 | |||||||||||||
Net income | $ | 3,869 | $ | 3,367 | $ | 3,799 | $ | 2,334 | |||||||||
Diluted earnings per share | $ | 0.27 | $ | 0.23 | $ | 0.27 | $ | 0.16 | |||||||||
Cash dividend per share | $ | 0.07 | $ | 0.07 | $ | 0.06 | $ | 0.06 |
THE_BUSINESS_OF_SIERRA_BANCORP1
THE BUSINESS OF SIERRA BANCORP (Details) | Dec. 31, 2014 |
item | |
THE BUSINESS OF SIERRA BANCORP [Abstract] | |
Number of full service branch offices | 28 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Line Items] | |
Core deposit intangible assets amortization period | 8 years |
Percentage of more-likely-than-not threshold likelihood of fair value is less than its carrying amount | 50.00% |
Premises [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Useful lives | 25 years |
Premises [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Useful lives | 39 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Useful lives | 3 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Useful lives | 20 years |
2007 Plan [Member] | |
Accounting Policies [Line Items] | |
Number of shares authorized but unissued stock and reserved for issuance | 1,500,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Fair Value of Option Date of Grant) (Details) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
Dividend yield | 2.08% | [1] | 2.35% | |
Expected Volatility | 25.01% | [1] | 56.71% | |
Risk-free interest rate | 0.01% | [1] | 0.43% | |
Expected option life | 4 years | 5 years 6 months | ||
[1] | No stock options were issued in 2013. |
SECURITIES_AVAILABLEFORSALE_Na
SECURITIES AVAILABLE-FOR-SALE (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sale of available-for-sale securities | $26,700,000 | $700,000 | $56,400,000 |
Number of securities with unrealized gross losses | 134 | 197 | |
Amortized Cost | 504,564,000 | 424,315,000 | |
Other Contractual Obligations and Short-Term Borrowing Arrangements [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Pledged financial instruments, not separately reported, securities | 137,160,000 | 162,393,000 | |
Pledged assets separately reported, securities pledged as collateral, at fair value | 140,611,000 | 164,390,000 | |
U.S. Government agencies [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sale of available-for-sale securities | 502,000 | ||
Number of securities with realized gross gains | 59 | ||
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sale of available-for-sale securities | 238,000 | ||
Number of securities with realized gross gains | 1 | ||
Amortized Cost | 1,210,000 | 1,336,000 | |
Other Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of securities with realized gross gains | 7 | ||
Available-for-sale securities, gross realized gain (loss) | 72,000 | ||
States and Political Subdivisions [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 98,056,000 | 97,361,000 | |
States and Political Subdivisions [Member] | Arizona [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $3,800,000 |
SECURITIES_AVAILABLEFORSALE_Sc
SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-sale Securities Reconciliation) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $504,564 | $424,315 |
Gross Unrealized Gains | 8,738 | 6,130 |
Gross Unrealized Losses | -1,419 | -5,401 |
Estimated Fair Value | 511,883 | 425,044 |
U.S. Government agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 26,959 | 5,395 |
Gross Unrealized Gains | 334 | 18 |
Gross Unrealized Losses | -23 | -109 |
Estimated Fair Value | 27,270 | 5,304 |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 378,339 | 320,223 |
Gross Unrealized Gains | 4,299 | 3,269 |
Gross Unrealized Losses | -1,196 | -2,771 |
Estimated Fair Value | 381,442 | 320,721 |
State and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 98,056 | 97,361 |
Gross Unrealized Gains | 3,093 | 1,723 |
Gross Unrealized Losses | -200 | -2,521 |
Estimated Fair Value | 100,949 | 96,563 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,210 | 1,336 |
Gross Unrealized Gains | 1,012 | 1,120 |
Gross Unrealized Losses | ||
Estimated Fair Value | $2,222 | $2,456 |
SECURITIES_AVAILABLEFORSALE_Re
SECURITIES AVAILABLE-FOR-SALE (Realized Gain (Loss) on Investments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gross Gains And Losses From The Sales And Calls Of Investment Securities [Line Items] | |||
Gross gains on sales and calls of securities | $739 | $6 | $2,059 |
Gross losses on sales and calls of securities | -72 | -297 | |
Net gains on sales and calls of securities | $667 | $6 | $1,762 |
SECURITIES_AVAILABLEFORSALE_In
SECURITIES AVAILABLE-FOR-SALE (Information Pertaining to Investment Securities Aggregated by Investment Category and Length of Time that Individual Securities in a Continuous Loss Position) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | ($618) | ($1,195) |
Fair Value, Less Than Twelve Months | 95,227 | 30,459 |
Gross Unrealized Losses, Over Twelve Months | -801 | -4,206 |
Fair Value, Over Twelve Months | 61,027 | 164,320 |
U.S. Government agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | -23 | -92 |
Fair Value, Less Than Twelve Months | 3,485 | 1,913 |
Gross Unrealized Losses, Over Twelve Months | -17 | |
Fair Value, Over Twelve Months | 1,920 | |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | -564 | -642 |
Fair Value, Less Than Twelve Months | 84,004 | 21,747 |
Gross Unrealized Losses, Over Twelve Months | -632 | -2,129 |
Fair Value, Over Twelve Months | 51,982 | 124,317 |
State and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | -31 | -461 |
Fair Value, Less Than Twelve Months | 7,738 | 6,799 |
Gross Unrealized Losses, Over Twelve Months | -169 | -2,060 |
Fair Value, Over Twelve Months | 9,045 | 38,083 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | ||
Fair Value, Less Than Twelve Months | ||
Gross Unrealized Losses, Over Twelve Months | ||
Fair Value, Over Twelve Months |
SECURITIES_AVAILABLEFORSALE_In1
SECURITIES AVAILABLE-FOR-SALE (Investments Classified by Contractual Maturity Date) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Contractual Maturity [Line Items] | ||
Maturing within one year, Amortized Cost | $686 | |
Maturing after one year through five years, Amortized Cost | 222,081 | |
Maturing after five years through ten years, Amortized Cost | 97,949 | |
Maturing after ten years, Amortized Cost | 54,531 | |
Amortized Cost, Total | 504,564 | 424,315 |
Maturing within one year, Fair Value | 694 | |
Maturing after one year through five years, Fair Value | 225,415 | |
Maturing after five years through ten years, Fair Value | 99,583 | |
Maturing after ten years, Fair Value | 55,705 | |
Fair Value, Total | 511,883 | 425,044 |
U.S Government agencies collateralized by mortgage obligations [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Contractual Maturity [Line Items] | ||
Investment securities not due at a single maturity date, Amortized Cost | 128,107 | |
Investment securities not due at a single maturity date, Fair Value | 128,264 | |
Other securities [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By Contractual Maturity [Line Items] | ||
Investment securities not due at a single maturity date, Amortized Cost | 1,210 | |
Investment securities not due at a single maturity date, Fair Value | $2,222 |
SECURITIES_AVAILABLEFORSALE_Su
SECURITIES AVAILABLE-FOR-SALE (Summary of Amortized Cost and Fair Values of General Obligation and Revenue Bonds) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | $504,564 | $424,315 |
Fair Value | 511,883 | 425,044 |
States and Political Subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 98,056 | 97,361 |
Fair Value | 100,949 | 96,563 |
States and Political Subdivisions [Member] | Arizona [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 3,800 | |
General obligation bonds [Member] | States and Political Subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 78,470 | 76,855 |
Fair Value | 80,854 | 76,302 |
General obligation bonds [Member] | States and Political Subdivisions [Member] | California [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 20,078 | 20,638 |
Fair Value | 21,288 | 21,272 |
General obligation bonds [Member] | States and Political Subdivisions [Member] | Texas [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 14,489 | 11,340 |
Fair Value | 14,675 | 11,024 |
General obligation bonds [Member] | States and Political Subdivisions [Member] | Illinois [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 8,272 | 8,965 |
Fair Value | 8,394 | 8,702 |
General obligation bonds [Member] | States and Political Subdivisions [Member] | Ohio [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 7,456 | 7,659 |
Fair Value | 7,555 | 7,485 |
General obligation bonds [Member] | States and Political Subdivisions [Member] | Washington [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 5,966 | 5,487 |
Fair Value | 6,126 | 5,340 |
General obligation bonds [Member] | States and Political Subdivisions [Member] | Arizona [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,070 | 2,100 |
Fair Value | 2,156 | 2,050 |
General obligation bonds [Member] | States and Political Subdivisions [Member] | Other [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 20,139 | 20,666 |
Fair Value | 20,660 | 20,429 |
Revenue bonds [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 19,586 | 18,233 |
Fair Value | 20,095 | 17,931 |
Revenue bonds [Member] | Water [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 7,100 | 7,409 |
Fair Value | 7,278 | 7,144 |
Revenue bonds [Member] | College & University [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,723 | 2,203 |
Fair Value | 2,834 | 2,187 |
Revenue bonds [Member] | Sales Tax [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,361 | 1,888 |
Fair Value | 2,405 | 1,895 |
Revenue bonds [Member] | Electric & Power [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 1,880 | 1,673 |
Fair Value | 1,914 | 1,688 |
Revenue bonds [Member] | Lease [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 1,356 | 1,155 |
Fair Value | 1,362 | 1,063 |
Revenue bonds [Member] | Other [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 4,166 | 3,905 |
Fair Value | 4,302 | 3,954 |
Revenue bonds [Member] | States and Political Subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 19,586 | 18,233 |
Fair Value | 20,095 | 17,931 |
Revenue bonds [Member] | States and Political Subdivisions [Member] | California [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,174 | 2,519 |
Fair Value | 2,233 | 2,579 |
Revenue bonds [Member] | States and Political Subdivisions [Member] | Texas [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 3,273 | 2,762 |
Fair Value | 3,387 | 2,719 |
Revenue bonds [Member] | States and Political Subdivisions [Member] | Ohio [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 321 | 324 |
Fair Value | 332 | 339 |
Revenue bonds [Member] | States and Political Subdivisions [Member] | Washington [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 1,167 | 1,170 |
Fair Value | 1,197 | 1,211 |
Revenue bonds [Member] | States and Political Subdivisions [Member] | Arizona [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 3,710 | 4,700 |
Fair Value | 3,777 | 4,341 |
Revenue bonds [Member] | States and Political Subdivisions [Member] | Other [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 8,941 | 6,758 |
Fair Value | 9,169 | 6,742 |
Certificates of participation [Member] | States and Political Subdivisions [Member] | ||
Amortized Cost And Estimated Fair Value Of Investment Securities Available For Sale By By Type Of Bonds [Line Items] | ||
Amortized Cost | 2,273 | |
Fair Value | $2,330 |
LOANS_AND_LEASES_Narrative_Det
LOANS AND LEASES (Narrative) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Financing Receivable, Modifications [Line Items] | |||||
Additional commitments to financing receivable modifications, amount | $0 | $250,000 | |||
Interest Income Recognized on Impaired Loans | 1,056,000 | [1] | 1,220,000 | [1] | 1,394,000 |
Loans and leases receivable, collateral for secured borrowings | 475,979,000 | 413,369,000 | |||
Salaries and employee benefits | 2,673,000 | 2,804,000 | 2,745,000 | ||
Servicing portfolio | 770,000 | 1,585,000 | 2,596,000 | ||
Financing receivable modifications subsequent default increase decrease allowance for loan and lease losses | 51,000 | 660,000 | |||
Allowance for loan and lease losses, adjustments, Net | 2,714,000 | 3,321,000 | |||
Commercial Loan [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Impaired debt restructuring loans | 2,592,000 | 3,714,000 | |||
Mortgage Loans on Real Estate [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Impaired debt restructuring loans | 21,302,000 | 32,960,000 | |||
Consumer loans [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Impaired debt restructuring loans | $2,640,000 | $3,250,000 | |||
[1] | Interest income is recognized on performing balances on a regular accrual basis. |
LOANS_AND_LEASES_Composition_o
LOANS AND LEASES (Composition of the Loan and Lease Portfolio) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Composition of Loan and Lease Portfolio [Line Items] | ||
Agricultural | $27,746 | $25,180 |
Commercial and industrial | 113,771 | 103,262 |
Mortgage warehouse lines | 106,021 | 73,425 |
Consumer | 18,885 | 23,536 |
Total loans | 970,653 | 803,242 |
Deferred loan and lease origination cost, net | 1,651 | 1,522 |
Allowance for loan and lease losses | -11,248 | -11,677 |
Loans, net | 961,056 | 793,087 |
Secured by residential, commercial and professional office properties, including construction and development [Member] | ||
Composition of Loan and Lease Portfolio [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 370,639 | 318,383 |
Secured by residential properties [Member] | ||
Composition of Loan and Lease Portfolio [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 188,552 | 150,952 |
Secured by farm land [Member] | ||
Composition of Loan and Lease Portfolio [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 145,039 | 108,504 |
Total real estate loans [Member] | ||
Composition of Loan and Lease Portfolio [Line Items] | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $704,230 | $577,839 |
LOANS_AND_LEASES_Credit_Qualit
LOANS AND LEASES (Credit Quality Classifications) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | $970,653 | $803,242 |
Consumer loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 18,885 | 23,536 |
Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 704,230 | 577,839 |
Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 19,908 | 25,531 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 897,004 | 709,559 |
Pass [Member] | Consumer loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 15,752 | 19,387 |
Pass [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 639,547 | 499,345 |
Pass [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 15,238 | 18,243 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 28,970 | 29,130 |
Special Mention [Member] | Consumer loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 222 | 478 |
Special Mention [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 26,688 | 24,762 |
Special Mention [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 247 | 334 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 8,255 | 8,166 |
Substandard [Member] | Consumer loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 23 | 208 |
Substandard [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 7,375 | 6,722 |
Substandard [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 203 | |
Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 36,424 | 56,387 |
Impaired [Member] | Consumer loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 2,888 | 3,463 |
Impaired [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 30,620 | 47,010 |
Impaired [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 4,423 | 6,751 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 27,746 | 25,180 |
Agricultural [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 27,215 | 24,178 |
Agricultural [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 531 | 532 |
Agricultural [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | ||
Agricultural [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 470 | |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 113,771 | 103,262 |
Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 108,469 | 93,224 |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 1,529 | 3,358 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 857 | 1,236 |
Commercial and Industrial [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 2,916 | 5,444 |
1-4 Family residential construction [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 5,858 | 1,720 |
1-4 Family residential construction [Member] | Pass [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 5,858 | 1,720 |
1-4 Family residential construction [Member] | Special Mention [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | ||
1-4 Family residential construction [Member] | Substandard [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | ||
1-4 Family residential construction [Member] | Impaired [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | ||
1-4 Family - closed end [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 114,259 | 87,024 |
1-4 Family - closed end [Member] | Pass [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 105,398 | 67,051 |
1-4 Family - closed end [Member] | Special Mention [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 833 | 1,305 |
1-4 Family - closed end [Member] | Substandard [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 918 | 770 |
1-4 Family - closed end [Member] | Impaired [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 7,110 | 17,898 |
Equity Lines [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 49,717 | 53,723 |
Equity Lines [Member] | Pass [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 46,819 | 51,019 |
Equity Lines [Member] | Special Mention [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 294 | 254 |
Equity Lines [Member] | Substandard [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 1,237 | 1,429 |
Equity Lines [Member] | Impaired [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 1,367 | 1,021 |
Multi-family residential [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 18,718 | 8,485 |
Multi-family residential [Member] | Pass [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 18,127 | 8,059 |
Multi-family residential [Member] | Special Mention [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 420 | 426 |
Multi-family residential [Member] | Substandard [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | ||
Multi-family residential [Member] | Impaired [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 171 | |
Commercial real estate - owner occupied [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 218,654 | 186,012 |
Commercial real estate - owner occupied [Member] | Pass [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 191,495 | 158,155 |
Commercial real estate - owner occupied [Member] | Special Mention [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 18,694 | 17,033 |
Commercial real estate - owner occupied [Member] | Substandard [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 3,845 | 3,261 |
Commercial real estate - owner occupied [Member] | Impaired [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 4,620 | 7,563 |
Commercial real estate - non-owner occupied [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 132,077 | 106,840 |
Commercial real estate - non-owner occupied [Member] | Pass [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 114,317 | 89,475 |
Commercial real estate - non-owner occupied [Member] | Special Mention [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 4,250 | 3,630 |
Commercial real estate - non-owner occupied [Member] | Substandard [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 631 | 240 |
Commercial real estate - non-owner occupied [Member] | Impaired [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 12,879 | 13,495 |
Farmland [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 145,039 | 108,504 |
Farmland [Member] | Pass [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 142,295 | 105,623 |
Farmland [Member] | Special Mention [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 1,950 | 1,780 |
Farmland [Member] | Substandard [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 744 | 819 |
Farmland [Member] | Impaired [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 50 | 282 |
Mortgage warehouse lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 106,021 | 73,425 |
Mortgage warehouse lines [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | 106,021 | 73,425 |
Mortgage warehouse lines [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | ||
Mortgage warehouse lines [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable | ||
Mortgage warehouse lines [Member] | Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Financing Receivable |
LOANS_AND_LEASES_Activity_in_A
LOANS AND LEASES (Activity in Allowance for Loan and Lease Losses) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for credit losses: | ||||||
Beginning of year | $11,677 | $13,873 | $17,283 | |||
Charge-offs | -4,215 | -8,263 | -18,778 | |||
Recoveries | 3,436 | 1,717 | 1,158 | |||
Provision | 350 | 4,350 | 14,210 | |||
End of year | 11,248 | 11,677 | 13,873 | |||
Loans evaluated for impairment: | ||||||
Individually | 36,424 | 56,387 | 78,162 | |||
Collectively | 934,229 | 746,855 | 801,633 | |||
Reserves based on method of evaluation for impairment: | ||||||
Specific | 5,448 | 5,349 | 7,125 | |||
General | 5,800 | 6,328 | 6,748 | |||
Consumer loans [Member] | ||||||
Allowance for credit losses: | ||||||
Beginning of year | 1,117 | 2,114 | 2,608 | |||
Charge-offs | -1,837 | -1,917 | -2,568 | |||
Recoveries | 716 | 297 | 278 | |||
Provision | 1,769 | 623 | 1,796 | |||
End of year | 1,765 | 1,117 | 2,114 | |||
Loans evaluated for impairment: | ||||||
Individually | 2,888 | 3,463 | 4,348 | |||
Collectively | 15,997 | 20,073 | 24,524 | |||
Reserves based on method of evaluation for impairment: | ||||||
Specific | 668 | 431 | 878 | |||
General | 1,097 | 686 | 1,236 | |||
Real Estate Loans [Member] | ||||||
Allowance for credit losses: | ||||||
Beginning of year | 5,544 | 8,034 | 8,260 | |||
Charge-offs | -1,629 | -4,205 | -11,108 | |||
Recoveries | 1,913 | 618 | 302 | |||
Provision | 415 | 1,097 | 10,580 | |||
End of year | 6,243 | 5,544 | 8,034 | |||
Loans evaluated for impairment: | ||||||
Individually | 30,620 | 47,010 | 66,133 | |||
Collectively | 673,610 | 530,829 | 479,656 | |||
Reserves based on method of evaluation for impairment: | ||||||
Specific | 3,864 | 2,867 | 4,180 | |||
General | 2,379 | 2,677 | 3,854 | |||
Agricultural [Member] | ||||||
Allowance for credit losses: | ||||||
Beginning of year | 978 | 258 | 19 | |||
Charge-offs | -124 | -473 | -634 | |||
Recoveries | 6 | |||||
Provision | 126 | 1,193 | 873 | |||
End of year | 986 | 978 | 258 | |||
Loans evaluated for impairment: | ||||||
Individually | 470 | 663 | ||||
Collectively | 27,746 | 24,710 | 21,819 | |||
Reserves based on method of evaluation for impairment: | ||||||
Specific | 126 | 28 | ||||
General | 986 | 852 | 230 | |||
Commercial and Industrial [Member] | ||||||
Allowance for credit losses: | ||||||
Beginning of year | 3,787 | [1] | 3,467 | [1] | 6,396 | [1] |
Charge-offs | -625 | [1] | -1,668 | [1] | -4,468 | [1] |
Recoveries | 801 | [1] | 802 | [1] | 578 | [1] |
Provision | -2,019 | [1] | 1,186 | [1] | 961 | [1] |
End of year | 1,944 | [1] | 3,787 | [1] | 3,467 | [1] |
Loans evaluated for impairment: | ||||||
Individually | 2,916 | [1] | 5,444 | [1] | 7,018 | [1] |
Collectively | 216,876 | [1] | 171,243 | [1] | 275,634 | [1] |
Reserves based on method of evaluation for impairment: | ||||||
Specific | 916 | [1] | 1,925 | [1] | 2,039 | [1] |
General | 1,028 | [1] | 1,862 | [1] | 1,428 | [1] |
Unallocated [Member] | ||||||
Allowance for credit losses: | ||||||
Beginning of year | 251 | |||||
Charge-offs | ||||||
Recoveries | ||||||
Provision | 59 | 251 | ||||
End of year | 310 | 251 | ||||
Reserves based on method of evaluation for impairment: | ||||||
Specific | ||||||
General | $310 | $251 | ||||
[1] | Includes mortgage warehouse lines |
LOANS_AND_LEASES_Past_Due_and_
LOANS AND LEASES (Past Due and Nonaccrual Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | $6,662 | $7,212 | ||
60-89 Days Past Due | 1,522 | 1,358 | ||
90 Days or More Past Due | 14,820 | [1] | 11,676 | [2] |
Total Past Due | 23,004 | 20,246 | ||
Current | 947,649 | 782,996 | ||
Total Financing Receivables | 970,653 | 803,242 | ||
Non-Accrual Loans | 20,678 | [3] | 37,414 | [3] |
Consumer loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 136 | 181 | ||
60-89 Days Past Due | 17 | |||
90 Days or More Past Due | [1] | [2] | ||
Total Past Due | 153 | 181 | ||
Current | 18,732 | 23,355 | ||
Total Financing Receivables | 18,885 | 23,536 | ||
Non-Accrual Loans | 826 | [3] | 992 | [3] |
Agricultural [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 618 | 892 | ||
60-89 Days Past Due | 327 | |||
90 Days or More Past Due | [1] | 125 | [2] | |
Total Past Due | 618 | 1,344 | ||
Current | 27,128 | 23,836 | ||
Total Financing Receivables | 27,746 | 25,180 | ||
Non-Accrual Loans | [3] | 470 | [3] | |
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 1,346 | 1,318 | ||
60-89 Days Past Due | 153 | 587 | ||
90 Days or More Past Due | 39 | [1] | 1,298 | [2] |
Total Past Due | 1,538 | 3,203 | ||
Current | 112,233 | 100,059 | ||
Total Financing Receivables | 113,771 | 103,262 | ||
Non-Accrual Loans | 821 | [3] | 2,622 | [3] |
Mortgage warehouse lines [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | ||||
60-89 Days Past Due | ||||
90 Days or More Past Due | [1] | [2] | ||
Total Past Due | ||||
Current | 106,021 | 73,425 | ||
Total Financing Receivables | 106,021 | 73,425 | ||
Non-Accrual Loans | [3] | [3] | ||
Real Estate Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 4,562 | 4,821 | ||
60-89 Days Past Due | 1,352 | 444 | ||
90 Days or More Past Due | 14,781 | [1] | 10,253 | [2] |
Total Past Due | 20,695 | 15,518 | ||
Current | 683,535 | 562,321 | ||
Total Financing Receivables | 704,230 | 577,839 | ||
Non-Accrual Loans | 19,031 | [3] | 33,330 | [3] |
Real Estate Loans [Member] | 1-4 Family residential construction [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | ||||
60-89 Days Past Due | 332 | |||
90 Days or More Past Due | [1] | [2] | ||
Total Past Due | 332 | |||
Current | 5,526 | 1,720 | ||
Total Financing Receivables | 5,858 | 1,720 | ||
Non-Accrual Loans | [3] | [3] | ||
Real Estate Loans [Member] | Other Construction/Land [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 93 | 294 | ||
60-89 Days Past Due | 59 | |||
90 Days or More Past Due | 3,253 | [1] | 116 | [2] |
Total Past Due | 3,405 | 410 | ||
Current | 16,503 | 25,121 | ||
Total Financing Receivables | 19,908 | 25,531 | ||
Non-Accrual Loans | 3,547 | [3] | 5,528 | [3] |
Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 1,125 | 2,181 | ||
60-89 Days Past Due | 597 | 300 | ||
90 Days or More Past Due | 2,874 | [1] | 171 | [2] |
Total Past Due | 4,596 | 2,652 | ||
Current | 109,663 | 84,372 | ||
Total Financing Receivables | 114,259 | 87,024 | ||
Non-Accrual Loans | 3,042 | [3] | 13,168 | [3] |
Real Estate Loans [Member] | Equity Lines [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 98 | 98 | ||
60-89 Days Past Due | 44 | |||
90 Days or More Past Due | 214 | [1] | 288 | [2] |
Total Past Due | 356 | 386 | ||
Current | 49,361 | 53,337 | ||
Total Financing Receivables | 49,717 | 53,723 | ||
Non-Accrual Loans | 1,049 | [3] | 778 | [3] |
Real Estate Loans [Member] | Multi-family residential [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 185 | |||
60-89 Days Past Due | ||||
90 Days or More Past Due | 171 | [1] | ||
Total Past Due | 356 | |||
Current | 18,362 | 8,485 | ||
Total Financing Receivables | 18,718 | 8,485 | ||
Non-Accrual Loans | 171 | [3] | [3] | |
Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 1,460 | 1,917 | ||
60-89 Days Past Due | 26 | 144 | ||
90 Days or More Past Due | 1,316 | [1] | 2,011 | [2] |
Total Past Due | 2,802 | 4,072 | ||
Current | 215,852 | 181,940 | ||
Total Financing Receivables | 218,654 | 186,012 | ||
Non-Accrual Loans | 3,417 | [3] | 5,516 | [3] |
Real Estate Loans [Member] | Commercial real estate - Non-owner occupied [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 604 | |||
60-89 Days Past Due | 294 | |||
90 Days or More Past Due | 6,953 | [1] | 7,667 | [2] |
Total Past Due | 7,851 | 7,667 | ||
Current | 124,226 | 99,173 | ||
Total Financing Receivables | 132,077 | 106,840 | ||
Non-Accrual Loans | 7,754 | [3] | 8,058 | [3] |
Real Estate Loans [Member] | Farmland [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
30-59 Days Past Due | 997 | 331 | ||
60-89 Days Past Due | ||||
90 Days or More Past Due | [1] | [2] | ||
Total Past Due | 997 | 331 | ||
Current | 144,042 | 108,173 | ||
Total Financing Receivables | 145,039 | 108,504 | ||
Non-Accrual Loans | $51 | [3] | $282 | [3] |
[1] | As of December 31, 2014 there were no loans over 90 days past due and still accruing. | |||
[2] | As of December 31, 2013 there were no loans over 90 days past due and still accruing. | |||
[3] | Included in Total Financing Receivables |
LOANS_AND_LEASES_Individually_
LOANS AND LEASES (Individually Impaired Loans) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | $18,244,000 | [1] | $30,900,000 | [1] | |
With an Allowance Recorded Recorded Investment | 18,043,000 | [2] | 30,665,000 | [2] | |
With an Allowance Recorded Related Allowance | 5,448,000 | 5,349,000 | |||
With an Allowance Recorded Average Recorded Investment | 19,295,000 | 31,260,000 | |||
With an Allowance Recorded Interest Income Recognized | 938,000 | [3] | 1,047,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 19,736,000 | [1] | 29,026,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 18,381,000 | [2] | 25,722,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 27,772,000 | 27,264,000 | |||
With no Related Allowance Recorded Interest Income Recognized | 118,000 | [3] | 173,000 | [3] | |
Individually impaired loans Unpaid Principal Balance | 37,980,000 | [1] | 59,926,000 | [1] | |
Individually impaired loans Recorded Investment | 36,424,000 | [2] | 56,387,000 | [2] | |
Gross Unrealized Losses | -5,448,000 | -5,349,000 | |||
Individually impaired loans Average Recorded Investment | 47,067,000 | 58,524,000 | |||
Individually impaired loans Interest Income Recognized | 1,056,000 | [3] | 1,220,000 | [3] | 1,394,000 |
Consumer loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 2,790,000 | [1] | 3,411,000 | [1] | |
With an Allowance Recorded Recorded Investment | 2,788,000 | [2] | 3,411,000 | [2] | |
With an Allowance Recorded Related Allowance | 668,000 | 431,000 | |||
With an Allowance Recorded Average Recorded Investment | 3,115,000 | 3,591,000 | |||
With an Allowance Recorded Interest Income Recognized | 150,000 | [3] | 172,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 275,000 | [1] | 241,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 100,000 | [2] | 52,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 347,000 | 77,000 | |||
With no Related Allowance Recorded Interest Income Recognized | [3] | [3] | |||
Agricultural [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | [1] | 125,000 | [1] | ||
With an Allowance Recorded Recorded Investment | [2] | 125,000 | [2] | ||
With an Allowance Recorded Related Allowance | 126,000 | ||||
With an Allowance Recorded Average Recorded Investment | 131,000 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | [3] | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | 345,000 | [1] | ||
With no Related Allowance Recorded Recorded Investment | [2] | 345,000 | [2] | ||
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 837,000 | ||||
With no Related Allowance Recorded Interest Income Recognized | [3] | [3] | |||
Commercial and Industrial [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 2,910,000 | [1] | 4,580,000 | [1] | |
With an Allowance Recorded Recorded Investment | 2,898,000 | [2] | 4,345,000 | [2] | |
With an Allowance Recorded Related Allowance | 916,000 | 1,925,000 | |||
With an Allowance Recorded Average Recorded Investment | 3,046,000 | 4,496,000 | |||
With an Allowance Recorded Interest Income Recognized | 123,000 | [3] | 131,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 35,000 | [1] | 1,249,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 18,000 | [2] | 1,099,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 81,000 | 1,607,000 | |||
With no Related Allowance Recorded Interest Income Recognized | [3] | 57,000 | [3] | ||
Real Estate Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 12,544,000 | [1] | 22,784,000 | [1] | |
With an Allowance Recorded Recorded Investment | 12,357,000 | [2] | 22,784,000 | [2] | |
With an Allowance Recorded Related Allowance | 3,864,000 | 2,867,000 | |||
With an Allowance Recorded Average Recorded Investment | 13,134,000 | 23,042,000 | |||
With an Allowance Recorded Interest Income Recognized | 665,000 | [3] | 744,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 19,426,000 | [1] | 27,191,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 18,263,000 | [2] | 24,226,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 27,344,000 | 24,743,000 | |||
With no Related Allowance Recorded Interest Income Recognized | 118,000 | [3] | 116,000 | [3] | |
Real Estate Loans [Member] | 1-4 family residential construction [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | [1] | [1] | |||
With an Allowance Recorded Recorded Investment | [2] | [2] | |||
With an Allowance Recorded Related Allowance | |||||
With an Allowance Recorded Average Recorded Investment | |||||
With an Allowance Recorded Interest Income Recognized | [3] | [3] | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | [1] | |||
With no Related Allowance Recorded Recorded Investment | [2] | [2] | |||
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | |||||
With no Related Allowance Recorded Interest Income Recognized | [3] | [3] | |||
Real Estate Loans [Member] | Other Construction/Land [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 1,155,000 | [1] | 2,972,000 | [1] | |
With an Allowance Recorded Recorded Investment | 1,078,000 | [2] | 2,972,000 | [2] | |
With an Allowance Recorded Related Allowance | 179,000 | 502,000 | |||
With an Allowance Recorded Average Recorded Investment | 1,193,000 | 3,000,000 | |||
With an Allowance Recorded Interest Income Recognized | 70,000 | [3] | 98,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 3,345,000 | [1] | 4,176,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 3,345,000 | [2] | 3,779,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 4,143,000 | 3,885,000 | |||
With no Related Allowance Recorded Interest Income Recognized | [3] | [3] | |||
Real Estate Loans [Member] | 1-4 Family - closed end [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 4,167,000 | [1] | 13,522,000 | [1] | |
With an Allowance Recorded Recorded Investment | 4,167,000 | [2] | 13,522,000 | [2] | |
With an Allowance Recorded Related Allowance | 288,000 | 1,324,000 | |||
With an Allowance Recorded Average Recorded Investment | 4,276,000 | 13,630,000 | |||
With an Allowance Recorded Interest Income Recognized | 258,000 | [3] | 260,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 2,943,000 | [1] | 4,655,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 2,943,000 | [2] | 4,376,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 9,186,000 | 4,687,000 | |||
With no Related Allowance Recorded Interest Income Recognized | [3] | 1,000 | [3] | ||
Real Estate Loans [Member] | Equity Lines [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 797,000 | [1] | 528,000 | [1] | |
With an Allowance Recorded Recorded Investment | 797,000 | [2] | 528,000 | [2] | |
With an Allowance Recorded Related Allowance | 230,000 | 123,000 | |||
With an Allowance Recorded Average Recorded Investment | 878,000 | 530,000 | |||
With an Allowance Recorded Interest Income Recognized | 14,000 | [3] | 13,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 609,000 | [1] | 565,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 570,000 | [2] | 493,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 611,000 | 493,000 | |||
With no Related Allowance Recorded Interest Income Recognized | [3] | [3] | |||
Real Estate Loans [Member] | Multi-family residential [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 171,000 | [1] | [1] | ||
With an Allowance Recorded Recorded Investment | 171,000 | [2] | [2] | ||
With an Allowance Recorded Related Allowance | 51,000 | ||||
With an Allowance Recorded Average Recorded Investment | 173,000 | ||||
With an Allowance Recorded Interest Income Recognized | [3] | [3] | |||
With no Related Allowance Recorded Unpaid Principal Balance | [1] | [1] | |||
With no Related Allowance Recorded Recorded Investment | [2] | [2] | |||
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | |||||
With no Related Allowance Recorded Interest Income Recognized | [3] | [3] | |||
Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 2,791,000 | [1] | 2,047,000 | [1] | |
With an Allowance Recorded Recorded Investment | 2,681,000 | [2] | 2,047,000 | [2] | |
With an Allowance Recorded Related Allowance | 1,385,000 | 217,000 | |||
With an Allowance Recorded Average Recorded Investment | 3,069,000 | 2,069,000 | |||
With an Allowance Recorded Interest Income Recognized | 60,000 | [3] | 135,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 2,915,000 | [1] | 7,436,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 1,939,000 | [2] | 5,516,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 3,046,000 | 5,568,000 | |||
With no Related Allowance Recorded Interest Income Recognized | [3] | [3] | |||
Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | 3,463,000 | [1] | 3,715,000 | [1] | |
With an Allowance Recorded Recorded Investment | 3,463,000 | [2] | 3,715,000 | [2] | |
With an Allowance Recorded Related Allowance | 1,731,000 | 701,000 | |||
With an Allowance Recorded Average Recorded Investment | 3,545,000 | 3,813,000 | |||
With an Allowance Recorded Interest Income Recognized | 263,000 | [3] | 238,000 | [3] | |
With no Related Allowance Recorded Unpaid Principal Balance | 9,563,000 | [1] | 10,077,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 9,416,000 | [2] | 9,780,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 10,306,000 | 9,820,000 | |||
With no Related Allowance Recorded Interest Income Recognized | 118,000 | [3] | 115,000 | [3] | |
Real Estate Loans [Member] | Farmland [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
With an Allowance Recorded Unpaid Principal Balance | [1] | [1] | |||
With an Allowance Recorded Recorded Investment | [2] | [2] | |||
With an Allowance Recorded Related Allowance | |||||
With an Allowance Recorded Average Recorded Investment | |||||
With an Allowance Recorded Interest Income Recognized | [3] | [3] | |||
With no Related Allowance Recorded Unpaid Principal Balance | 51,000 | [1] | 282,000 | [1] | |
With no Related Allowance Recorded Recorded Investment | 50,000 | [2] | 282,000 | [2] | |
With no Related Allowance Recorded Related Allowance | |||||
With no Related Allowance Recorded Average Recorded Investment | 52,000 | 290,000 | |||
With no Related Allowance Recorded Interest Income Recognized | [3] | [3] | |||
[1] | Contractual principal balance due from customer. | ||||
[2] | Principal balance on Company's books, less any direct charge offs. | ||||
[3] | Interest income is recognized on performing balances on a regular accrual basis. |
LOANS_AND_LEASES_Summary_of_In
LOANS AND LEASES (Summary of Interest Income from Non-Accrual Loans in Portfolio) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Interest Income from Non-Accrual Loans in the Portfolio [Line Items] | |||
Interest that would have been recorded under the loans' original terms | $1,666 | $3,209 | $4,084 |
Less gross interest recorded | 389 | 304 | 2,088 |
Foregone interest | $1,277 | $2,905 | $1,996 |
LOANS_AND_LEASES_Troubled_Debt
LOANS AND LEASES (Troubled Debt Restructurings, by Type of Loan Modification) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | $1,793 | $7,123 |
Consumer loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 112 | 561 |
Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 211 | 1,871 |
Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 1,470 | 4,691 |
Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 54 | 3,678 |
Real Estate Loans [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 974 | 40 |
Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 402 | 557 |
Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 40 | 416 |
Rate Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 320 | |
Rate Modification [Member] | Consumer loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate Modification [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate Modification [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate Modification [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 320 | |
Rate Modification [Member] | Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 41 | |
Rate Modification [Member] | Real Estate Loans [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate Modification [Member] | Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 279 | |
Rate Modification [Member] | Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate Modification [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 1,243 | 5,786 |
Term Modification [Member] | Consumer loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 9 | 469 |
Term Modification [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term Modification [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 153 | 1,563 |
Term Modification [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 1,081 | 3,754 |
Term Modification [Member] | Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 13 | 3,338 |
Term Modification [Member] | Real Estate Loans [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 945 | |
Term Modification [Member] | Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 123 | |
Term Modification [Member] | Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term Modification [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 416 | |
Interest-Only Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 40 | |
Interest-Only Modification [Member] | Consumer loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Interest-Only Modification [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Interest-Only Modification [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Interest-Only Modification [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 40 | |
Interest-Only Modification [Member] | Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Interest-Only Modification [Member] | Real Estate Loans [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 40 | |
Interest-Only Modification [Member] | Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Interest-Only Modification [Member] | Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Interest-Only Modification [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate & Term Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 200 | 1,103 |
Rate & Term Modification [Member] | Consumer loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 103 | |
Rate & Term Modification [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate & Term Modification [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 28 | 308 |
Rate & Term Modification [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 69 | 795 |
Rate & Term Modification [Member] | Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 238 | |
Rate & Term Modification [Member] | Real Estate Loans [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 29 | |
Rate & Term Modification [Member] | Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 557 | |
Rate & Term Modification [Member] | Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate & Term Modification [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 40 | |
Term & Interest-Only Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 30 | |
Term & Interest-Only Modification [Member] | Consumer loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term & Interest-Only Modification [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term & Interest-Only Modification [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 30 | |
Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate, Term & Interest-Only Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 194 | |
Rate, Term & Interest-Only Modification [Member] | Consumer loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 92 | |
Rate, Term & Interest-Only Modification [Member] | Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate, Term & Interest-Only Modification [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate, Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 102 | |
Rate, Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | 102 | |
Rate, Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate, Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate, Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment | ||
Rate, Term & Interest-Only Modification [Member] | Real Estate Loans [Member] | Other construction/Land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding, Recorded Investment |
LOANS_AND_LEASES_Troubled_Debt1
LOANS AND LEASES (Troubled Debt Restructurings including any Subsequent Defaults) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Outstanding Recorded Investment | $1,793 | $7,113 | ||
Post-Modification Outstanding Recorded Investment | 1,793 | 7,123 | ||
Reserve Difference | 454 | [1] | 409 | [1] |
Recorded Investment | 11,272 | 1,998 | ||
Charge-Offs | 168 | 930 | ||
Consumer loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 4 | 13 | ||
Pre-Modification Outstanding Recorded Investment | 112 | 561 | ||
Post-Modification Outstanding Recorded Investment | 112 | 561 | ||
Reserve Difference | 15 | [1] | 54 | [1] |
Subsequent Default Number Of Loans | 2 | 7 | ||
Recorded Investment | 133 | 181 | ||
Charge-Offs | 58 | 132 | ||
Agricultural [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 0 | 0 | ||
Pre-Modification Outstanding Recorded Investment | ||||
Post-Modification Outstanding Recorded Investment | ||||
Reserve Difference | [1] | [1] | ||
Subsequent Default Number Of Loans | 0 | 0 | ||
Recorded Investment | ||||
Charge-Offs | ||||
Commercial and Industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 9 | 8 | ||
Pre-Modification Outstanding Recorded Investment | 211 | 1,858 | ||
Post-Modification Outstanding Recorded Investment | 211 | 1,871 | ||
Reserve Difference | 75 | [1] | 257 | [1] |
Subsequent Default Number Of Loans | 2 | 9 | ||
Recorded Investment | 129 | 568 | ||
Charge-Offs | 2 | 373 | ||
Real Estate Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Outstanding Recorded Investment | 1,470 | 4,694 | ||
Post-Modification Outstanding Recorded Investment | 1,470 | 4,691 | ||
Reserve Difference | 364 | [1] | 98 | [1] |
Recorded Investment | 11,010 | 1,249 | ||
Charge-Offs | 108 | 425 | ||
Real Estate Loans [Member] | 1-4 Family - closed end [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 2 | 8 | ||
Pre-Modification Outstanding Recorded Investment | 54 | 3,679 | ||
Post-Modification Outstanding Recorded Investment | 54 | 3,678 | ||
Reserve Difference | [1] | 20 | [1] | |
Subsequent Default Number Of Loans | 2 | 2 | ||
Recorded Investment | 8,305 | 779 | ||
Charge-Offs | 133 | |||
Real Estate Loans [Member] | Equity Lines [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 11 | 1 | ||
Pre-Modification Outstanding Recorded Investment | 974 | 40 | ||
Post-Modification Outstanding Recorded Investment | 974 | 40 | ||
Reserve Difference | 364 | [1] | 40 | [1] |
Subsequent Default Number Of Loans | 0 | 0 | ||
Recorded Investment | ||||
Charge-Offs | ||||
Real Estate Loans [Member] | Commercial real estate - owner occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 2 | 1 | ||
Pre-Modification Outstanding Recorded Investment | 402 | 557 | ||
Post-Modification Outstanding Recorded Investment | 402 | 557 | ||
Reserve Difference | [1] | [1] | ||
Subsequent Default Number Of Loans | 2 | 1 | ||
Recorded Investment | 937 | 308 | ||
Charge-Offs | 31 | 245 | ||
Real Estate Loans [Member] | Commercial real estate - non-owner occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 0 | 0 | ||
Pre-Modification Outstanding Recorded Investment | ||||
Post-Modification Outstanding Recorded Investment | ||||
Reserve Difference | [1] | [1] | ||
Subsequent Default Number Of Loans | 0 | 0 | ||
Recorded Investment | ||||
Charge-Offs | ||||
Other construction/Land [Member] | Real Estate Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | 1 | 2 | ||
Pre-Modification Outstanding Recorded Investment | 40 | 418 | ||
Post-Modification Outstanding Recorded Investment | 40 | 416 | ||
Reserve Difference | [1] | 38 | [1] | |
Subsequent Default Number Of Loans | 4 | 2 | ||
Recorded Investment | 1,768 | 162 | ||
Charge-Offs | $77 | $47 | ||
[1] | This represents the increase or (decrease) in the allowance for loans and lease losses reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology. |
LOANS_AND_LEASES_Carrying_Amou
LOANS AND LEASES (Carrying Amount and Unpaid Principal Balance of Purchased Credit Impaired Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | $37,980 | [1] | $59,926 | [1] |
Purchased Credit Impaired Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 1,315 | |||
Carrying Value | 228 | |||
Purchased Credit Impaired Loans [Member] | Consumer Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 1 | |||
Carrying Value | ||||
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 92 | |||
Carrying Value | ||||
Purchased Credit Impaired Loans [Member] | Real estate secured [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Unpaid Principal Balance | 1,222 | |||
Carrying Value | $228 | |||
[1] | Contractual principal balance due from customer. |
LOANS_AND_LEASES_Purchased_Cre
LOANS AND LEASES (Purchased Credit Impaired Loans Acquired for which it was Probable at Acquisition that Not All Contractually Required Payments would be Collected) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Nov. 14, 2014 | |
Purchased credit impaired loans acquired for which it was probable at acquisition that not all contractually required payments would be collected | ||
Contractually required payments including interest | $1,447,000 | |
Non-accretable difference | -1,221,000 | |
Cash flows expected to be collected | 226,000 | |
Accretable difference | ||
Fair value at acquisition | 226,000 | |
Discount accretion on PCI loans | $0 |
PREMISES_AND_EQUIPMENT_Premise
PREMISES AND EQUIPMENT (Premises and Equipment at Cost) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $48,614 | $46,790 |
Less accumulated depreciation and amortization | 26,808 | 26,402 |
Construction in progress | 47 | 5 |
Premises and equipment, net | 21,853 | 20,393 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,019 | 2,607 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 16,348 | 15,818 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 18,397 | 17,829 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $10,850 | $10,536 |
PREMISES_AND_EQUIPMENT_Narrati
PREMISES AND EQUIPMENT (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $2,107,000 | $2,119,000 | $2,289,000 |
Rental expense included in occupancy and equipment expense | $1,017,000 | $1,001,000 | $1,011,000 |
PREMISES_AND_EQUIPMENT_Future_
PREMISES AND EQUIPMENT (Future Minimum Lease Payments on Non-Cancelable Operating Leases) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Rent commitments [Line Items] | |
2015 | 1,143,000 |
2016 | 1,095,000 |
2017 | 1,004,000 |
2018 | 751,000 |
2019 | 748,000 |
Thereafter | 3,088,000 |
Total | 7,829,000 |
Minimum [Member] | |
Rent commitments [Line Items] | |
Operating leases renewal term | 1 year |
Maximum [Member] | |
Rent commitments [Line Items] | |
Operating leases renewal term | 10 years |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Schedule of Change in Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in goodwill | |||
Balance at January 1 | $5,544 | $5,544 | $5,544 |
Acquired goodwill | 1,364 | ||
Impairment | |||
Balance at December 31 | $6,908 | $5,544 | $5,544 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Schedule of Acquired Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Acquired intangible assets [Line Items] | |||
Aggregate amortization expense | $11,000 | $0 | $0 |
Core deposit intangibles [Member] | |||
Acquired intangible assets [Line Items] | |||
Gross Carrying Amount | 1,075,000 | ||
Accumulated Amortization | $11,000 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS (Schedule of Estimated Amortization Expense for Each of Next Five Years and Thereafter) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Estimated amortization expense for each of the next five years and thereafter | |
2015 | $132 |
2016 | 132 |
2017 | 132 |
2018 | 132 |
2019 | 132 |
Thereafter | 404 |
Total | $1,064 |
OTHER_ASSETS_Narrative_Details
OTHER ASSETS (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
OTHER ASSETS [Abstract] | ||
Federal Home Loan Bank stock, at cost | $6,631 | $5,581 |
OTHER_ASSETS_Schedule_of_Other
OTHER ASSETS (Schedule of Other assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
OTHER ASSETS [Abstract] | ||
Accrued interest receivable | $5,852 | $4,990 |
Deferred tax assets | 12,810 | 12,286 |
Prepaid taxes | 2,787 | |
Investment in limited partnerships | 7,276 | 9,204 |
Federal Home Loan Bank stock, at cost | 6,631 | 5,581 |
Other | 4,912 | 5,613 |
Other Assets | $37,481 | $40,461 |
DEPOSITS_Interest_Bearing_Depo
DEPOSITS (Interest Bearing Deposits) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DEPOSITS [Abstract] | ||
Interest Bearing Demand Deposits | $110,840 | $82,408 |
NOW | 275,494 | 200,313 |
Savings | 167,655 | 144,162 |
Money Market | 117,907 | 73,132 |
CDAR's, under $250,000 | 11,299 | 13,356 |
Time, Under $100,000 | 151,719 | 152,103 |
Time, $100,000 or more | 135,884 | 132,708 |
Brokered Deposits | 5,000 | 10,000 |
Interest-bearing Deposit Liabilities | $975,798 | $808,182 |
DEPOSITS_Aggregate_Annual_Matu
DEPOSITS (Aggregate Annual Maturities of Time Deposits) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
DEPOSITS [Abstract] | |
2015 | $295,099 |
2016 | 4,075 |
2017 | 2,597 |
2018 | 1,173 |
2019 | 304 |
Thereafter | 654 |
Time Deposits | $303,902 |
DEPOSITS_Interest_Expense_Reco
DEPOSITS (Interest Expense Recognized on Interest Bearing Deposits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DEPOSITS [Abstract] | |||
Interest Bearing Demand Deposits | $283 | $281 | $257 |
NOW | 338 | 359 | 556 |
Savings | 241 | 285 | 241 |
Money Market | 80 | 94 | 127 |
CDAR's | 11 | 36 | 52 |
Time Deposits | 1,017 | 1,243 | 1,773 |
Brokered Deposits | 94 | 157 | 202 |
Interest Expense, Deposits | $2,064 | $2,455 | $3,208 |
OTHER_BORROWING_ARRANGEMENTS_S
OTHER BORROWING ARRANGEMENTS (Schedule of Short-term Borrowings) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ||
Average balance outstanding | $9,438 | $6,373 |
Short-term Debt, Total | 25,451 | 5,974 |
Repurchase agreements [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | 5,936 | 2,876 |
Weighted average interest rate | 0.35% | 0.45% |
Short-term Debt, Total | 7,251 | 5,974 |
Overnight Federal Home Loan Bank advances [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | 3,502 | 3,497 |
Weighted average interest rate | 0.11% | 0.17% |
Short-term Debt, Total | $18,200 |
OTHER_BORROWING_ARRANGEMENTS_S1
OTHER BORROWING ARRANGEMENTS (Schedule of Long-term Borrowings) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term borrowings [Line Items] | ||
Amount | $6,000 | |
Weighted average interest rate | 0.37% | |
Federal Home Loan Bank advances, maturing 2015 [Member] | ||
Long-term borrowings [Line Items] | ||
Amount | 4,000 | |
Fixed rate | 0.29% | |
Federal Home Loan Bank advances, maturing 2016 [Member] | ||
Long-term borrowings [Line Items] | ||
Amount | $2,000 | |
Fixed rate | 0.54% |
OTHER_BORROWING_ARRANGEMENTS_N
OTHER BORROWING ARRANGEMENTS (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Short-term Debt [Line Items] | ||
First mortgage loans under a blanket lien arrangement collateralized | $380,494,000 | |
Maximum borrowing capacity | 244,424,000 | |
Remaining borrowing capacity | 167,076,000 | |
Unused lines of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Unsecured line of credit facility, amount | 70,000,000 | 70,000,000 |
Long-term Line of Credit | $0 | $0 |
INCOME_TAXES_Provision_for_Inc
INCOME TAXES (Provision for Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Provision For Income Taxes [Line Items] | |||||||||||
Federal (Current) | $5,738 | $563 | $220 | ||||||||
Federal (Deferred) | -1,281 | 1,842 | -647 | ||||||||
Federal | 4,457 | 2,405 | -427 | ||||||||
State (Current) | 1,604 | 170 | |||||||||
State (Deferred) | 130 | 518 | 83 | ||||||||
State | 1,734 | 688 | 83 | ||||||||
Income Tax Expense (Benefit) | $1,647 | $1,776 | $1,523 | $1,245 | $895 | $663 | $1,331 | $204 | $6,191 | $3,093 | ($344) |
INCOME_TAXES_Components_of_the
INCOME TAXES (Components of the Net Deferred Tax Asset, included in Other Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for loan losses | $4,877 | $5,669 |
Foreclosed Assets | 1,208 | 1,779 |
Deferred compensation | 4,227 | 4,112 |
Accrued reserves | 613 | 594 |
Non Accrual Loans | 245 | 1,211 |
Other than temporary impairment charge | 565 | 576 |
Credit Carryforward | 5,676 | 3,089 |
Net operating loss carryforward | 1,709 | |
Other | 1,207 | 153 |
Total deferred tax assets | 20,327 | 17,183 |
Deferred tax liabilities: | ||
Premises and equipment | -726 | -589 |
Deferred loan costs | -2,442 | -2,254 |
Unrealized gain on securities available-for-sale | -3,011 | -299 |
Other | -1,338 | -1,755 |
Total deferred tax liabilities | -7,517 | -4,897 |
Net deferred tax assets | $12,810 | $12,286 |
INCOME_TAXES_Amounts_Computed_
INCOME TAXES (Amounts Computed by Applying the Statutory Federal Income Tax Rates to Income Before Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory Federal Income Tax Rates To Income Before Income Taxes [Line Items] | |||||||||||
Income tax expense at Federal statutory rate | $7,501 | $5,597 | $2,666 | ||||||||
Increase (decrease) resulting from: | |||||||||||
State franchise tax expense, net of Federal tax effect | 1,116 | 414 | |||||||||
Tax exempt income | -1,018 | -920 | -1,388 | ||||||||
Affordable housing tax credits | -1,006 | -1,257 | -1,639 | ||||||||
Other | -402 | -741 | 17 | ||||||||
Income Tax Expense (Benefit) | $1,647 | $1,776 | $1,523 | $1,245 | $895 | $663 | $1,331 | $204 | $6,191 | $3,093 | ($344) |
Effective tax rate | 28.90% | 18.80% | -4.40% |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry forwards | $1,200 |
California [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry forwards | $500 |
SUBORDINATED_DEBENTURES_Detail
SUBORDINATED DEBENTURES (Details) (USD $) | 3 Months Ended | ||
Jun. 30, 2006 | Mar. 31, 2004 | Dec. 31, 2014 | |
Statutory Trust [Member] | |||
Subordinated Borrowings [Line Items] | |||
Trust preferred securities qualified as tier one capital | $30,000,000 | ||
Sierra Statutory Trust II [Member] | |||
Subordinated Borrowings [Line Items] | |||
Floating rate capital trust pass through securities issued during period | 15,000 | 15,000 | |
Floating rate capital trust pass through securities liquidation value per securities | 1,000 | 1,000 | |
Proceeds from issuance of mandatory redeemable capital securities | 15,000,000 | 15,000,000 | |
Subordinated Debt [Member] | |||
Subordinated Borrowings [Line Items] | |||
Proceeds from issuance of subordinated long-term debt | $15,464,000 | $15,464,000 | |
Subordinated borrowing, due date | 23-Sep-36 | 17-Mar-34 | |
Subordinated borrowing, interest rate | 1.63% | 2.99% | |
Debt instrument, basis spread on variable rate | 1.40% | 2.75% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies [Line Items] | ||
Federal reserve bank stock | 0 | $41,761,000 |
Letter of Credit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Federal home loan bank advances, Amount | 87,600,000 | |
Secure Public Deposits [Member] | ||
Commitments And Contingencies [Line Items] | ||
Federal home loan bank advances, Amount | 80,000,000 | |
Guarantee Financial Performance [Member] | ||
Commitments And Contingencies [Line Items] | ||
Federal home loan bank advances, Amount | 7,600,000 | |
Commercial Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration risk, Percentage | 53.00% | |
Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration risk, Percentage | 73.00% | |
Residential Real Estate [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration risk, Percentage | 26.00% | |
Farmland [Member] | ||
Commitments And Contingencies [Line Items] | ||
Concentration risk, Percentage | 21.00% |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Financial Instruments Represent Off-Balance-Sheet Credit Risk) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed-rate commitments to extend credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments off-balance sheet credit risks | $83,416 | $64,148 |
Variable-rate commitments to extend credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments off-balance sheet credit risks | 283,493 | 356,559 |
Standby letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments off-balance sheet credit risks | 6,787 | 8,703 |
Commercial and similar letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments off-balance sheet credit risks | $7,602 | $8,070 |
SHAREHOLDERS_EQUITY_Narrative_
SHAREHOLDERS' EQUITY (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stockholders Equity Note [Line Items] | ||||
Stock repurchased during period shares | 623,348 | |||
Total number of shares available for repurchase | 76,652 | |||
Number of Shares Outstanding | 632,000 | 746,000 | 927,000 | 810,000 |
Pre-tax compensation and directors' expense related to outstanding and vested stock options | $181,000 | $268,000 | $487,000 | |
Tax benefit from compensation and directors' expense related to outstanding and vested stock options | 63,000 | 110,000 | 200,000 | |
Amount of unamortized compensation, and directors expense on unvested stock options | 99,000 | |||
Period in which unamortized compensation, and directors expense on unvested stock options will be recognized | 2 years 10 months 24 days | |||
Exercised, Shares | 95,000 | 111,000 | 5,000 | |
Stock issued during period, value, stock options exercised | 1,076,000 | 1,116,000 | 15,000 | |
Weighted average remaining contractual life of stock options outstanding | 5 years 4 months 24 days | |||
Weighted average remaining contractual life of stock options exercisable | 5 years 25 days | |||
2007 Stock Option Plan [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Number of shares authorized to issued upon exercise of stock option | 1,500,000 | |||
Deferred tax expense from stock options exercised | 164,000 | |||
Exercised, Shares | 95,330 | |||
Stock issued during period, value, stock options exercised | $1,076,000 | |||
Percentage of stock Options Exercise Price to fair market value | 100.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease) | 788,620 | |||
1998 Stock Option Plan [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Number of Shares Outstanding | 112,000 |
SHAREHOLDERS_EQUITY_Reconcilia
SHAREHOLDERS' EQUITY (Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic Earnings Per Share | |||||||||||
Net income (dollars in thousands) | $3,653 | $3,551 | $4,237 | $3,799 | $3,869 | $3,367 | $3,799 | $2,334 | $15,240 | $13,369 | $8,185 |
Weighted average shares outstanding | 14,001,958 | 14,155,927 | 14,103,805 | ||||||||
Basic earnings per share | $1.09 | $0.94 | $0.58 | ||||||||
Diluted Earnings Per Share | |||||||||||
Net income (dollars in thousands) | $3,653 | $3,551 | $4,237 | $3,799 | $3,869 | $3,367 | $3,799 | $2,334 | $15,240 | $13,369 | $8,185 |
Weighted average shares outstanding | 14,001,958 | 14,155,927 | 14,103,805 | ||||||||
Effect of dilutive stock options | 134,528 | 134,223 | 16,508 | ||||||||
Weighted average shares outstanding | 14,136,486 | 14,290,150 | 14,120,313 | ||||||||
Diluted earnings per share | $0.26 | $0.25 | $0.31 | $0.26 | $0.27 | $0.23 | $0.27 | $0.16 | $1.08 | $0.94 | $0.58 |
SHAREHOLDERS_EQUITY_Summary_of
SHAREHOLDERS' EQUITY (Summary of Company's Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Companys Stock Option Activity [Line Items] | ||||||
Outstanding Shares, beginning of year | 746 | 927 | 810 | |||
Exercised , Shares | -95 | -111 | -5 | |||
Granted, Shares | 50 | 189 | ||||
Canceled, Shares | -69 | -70 | -67 | |||
Outstanding Shares, end of year | 632 | 746 | 927 | |||
Exercisable, end of year | 530 | [1] | 542 | [1] | 504 | [1] |
Outstanding, beginning of year, Weighted Average Exercise Price | $14.65 | $14.16 | $14.97 | |||
Exercised , Weighted Average Exercise Price | $11.28 | $9.87 | $9.45 | |||
Granted, Weighted Average Exercise Price | $16.35 | $10.21 | ||||
Canceled, Weighted Average Exercise Price | $14.20 | $15.75 | $13.08 | |||
Outstanding, end of year, Weighted Average Exercise Price | $15.34 | $14.65 | $14.16 | |||
Exercisable, end of year, Weighted Average Exercise Price | $16.25 | [1] | $16.30 | [1] | $16.07 | [1] |
Outstanding, end of year, Aggregate Intrinsic vaue | $2,850 | [2] | ||||
Exercisable, end of year, Aggregate Intrinsic value | $2,122 | [1],[2] | ||||
[1] | The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2014 was 5.40 years and 5.07 years, respectively. | |||||
[2] | The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. This amount changes based on changes in the market value of the Company's stock. |
SHAREHOLDERS_EQUITY_Informatio
SHAREHOLDERS' EQUITY (Information Related to Stock Options) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option [Line Items] | |||
Weighted-average grant-date fair value per share | $2.67 | $3.86 | |
Total intrinsic value of stock options exercised | $468,000 | $605,000 | $9,000 |
Total fair value of stock options vested | $367,000 | $583,000 | $517,000 |
REGULATORY_MATTERS_Narrative_D
REGULATORY MATTERS (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Banking And Thrift [Line Items] | |
Permited assets value requriement to continue include trust preferred securities in tier one capital | $15,000,000,000 |
Regulatory restrictions on payment of dividends | If the Company does not have sufficient retained earnings available for the proposed dividend, it may still pay a dividend to its shareholders if immediately after giving effect to the dividend the sum of the company's assets (exclusive of goodwill and deferred charges) would be at least equal to 125% of its liabilities (not including deferred taxes, deferred income and other deferred liabilities) and the current assets of the company would be at least equal to its current liabilities, or, if the average of its earnings before taxes on income and before interest expense for the two preceding fiscal years was less than the average of its interest expense for the two preceding fiscal years, at least equal to 125% of its current liabilities. |
Amount available for dividend distribution without affecting capital adequacy requirements | $20,618,000 |
Statutory Trust [Member] | |
Banking And Thrift [Line Items] | |
Percentage of trust prefered securities to tier one capital | 25.00% |
REGULATORY_MATTERS_Summary_of_
REGULATORY MATTERS (Summary of Minimum Total Risk-Based Tier 1 Risk-Based and Leverage Capital Ratios) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Sierra Bancorp and Subsidiary [Member] | ||
Leverage Ratio | ||
Capital Amount | $199,853 | $198,216 |
Minimum requirement for "Well - Capitalized" institutions | 76,926 | 68,969 |
Minimum regulatory requirement | 61,541 | 55,175 |
Ratio | 12.99% | 14.37% |
Minimum requirement for "Well-Capitalized" institutions, Ratio | 5.00% | 5.00% |
Minimum regulatory requirement, Ratio | 4.00% | 4.00% |
Tier 1 Risk-Based Capital Ratio | ||
Capital Amount | 199,903 | 198,225 |
Minimum requirement for "Well-Capitalized" institutions | 68,972 | 58,330 |
Minimum regulatory requirement | 45,981 | 38,887 |
Ratio | 17.39% | 20.39% |
Minimum requirement for "Well-Capitalized" institution, Ratio | 6.00% | 6.00% |
Minimum regulatory requirement, Ratio | 4.00% | 4.00% |
Total Risk-Based Capital Ratio | ||
Capital Amount | 211,973 | 210,669 |
Minimum requirement for "Well-Capitalized" institution | 114,953 | 97,217 |
Minimum regulatory requirement | 91,962 | 77,773 |
Ratio | 18.44% | 21.67% |
Minimum requirement for "Well-Capitalized" institution, Ratio | 10.00% | 10.00% |
Minimum regulatory requirement, Ratio | 8.00% | 8.00% |
Bank Of Sierra [Member] | ||
Leverage Ratio | ||
Capital Amount | 195,174 | 195,001 |
Minimum requirement for "Well - Capitalized" institutions | 76,706 | 68,765 |
Minimum regulatory requirement | 61,365 | 55,012 |
Ratio | 12.72% | 14.18% |
Minimum requirement for "Well-Capitalized" institutions, Ratio | 5.00% | 5.00% |
Minimum regulatory requirement, Ratio | 4.00% | 4.00% |
Tier 1 Risk-Based Capital Ratio | ||
Capital Amount | 195,174 | 195,001 |
Minimum requirement for "Well-Capitalized" institutions | 68,843 | 58,174 |
Minimum regulatory requirement | 45,895 | 38,783 |
Ratio | 17.01% | 20.11% |
Minimum requirement for "Well-Capitalized" institution, Ratio | 6.00% | 6.00% |
Minimum regulatory requirement, Ratio | 4.00% | 4.00% |
Total Risk-Based Capital Ratio | ||
Capital Amount | 206,736 | 206,960 |
Minimum requirement for "Well-Capitalized" institution | 114,739 | 96,957 |
Minimum regulatory requirement | $91,791 | $77,565 |
Ratio | 18.02% | 21.35% |
Minimum requirement for "Well-Capitalized" institution, Ratio | 10.00% | 10.00% |
Minimum regulatory requirement, Ratio | 8.00% | 8.00% |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and other postretirement benefit contributions | $5,159,000 | $4,952,000 | |
Pension and other postretirement benefit expense | 320,000 | 288,000 | 292,000 |
Defined benefit plan, benefits paid | 112,000 | 83,000 | 83,000 |
Defined contribution plan annual benefit after retirement or death period | 15 years | ||
Percentage of salary deferred for tax deferred savings plan maximum | 15.00% | ||
Defined contribution plan, employers matching contribution, annual vesting percentage | 6.00% | ||
Defined contribution plan, employer matching contribution, percent | 75.00% | 60.00% | 50.00% |
Defined contribution plan employer matching contribution vesting period | 5 years | ||
Defined contribution plan, employer discretionary contribution amount | 477,000 | 360,000 | 302,000 |
Former Executive [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and other postretirement benefit expense | 0 | 89,000 | 145,000 |
Defined benefit plan, benefits paid | 83,000 | 67,000 | 67,000 |
Premium life insurance policies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of life insurance | 38,303,000 | 35,250,000 | |
Deferred Compensation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of life insurance | $4,686,000 | $4,174,000 |
NONINTEREST_REVENUE_Schedule_o
NON-INTEREST REVENUE (Schedule of Other Nonoperating Income (Expense)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Amounts Attributable to Parent, Disclosures [Abstract] | |||
Loss on limited partnerships | ($1,161) | ($1,063) | ($395) |
Dividends on Equity Investments | 453 | 356 | 67 |
Rental income on leases | 46 | 102 | |
Other | 1,957 | 2,569 | 2,134 |
Total other non-interest income | $1,249 | $1,908 | $1,908 |
OTHER_NONINTEREST_EXPENSE_Sche
OTHER NON-INTEREST EXPENSE (Schedule of Other Non-interest Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | $15,035 | $16,621 | $19,541 |
Professional fees [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | 3,354 | 4,143 | 3,454 |
Data processing [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | 2,716 | 1,987 | 1,807 |
Advertising and promotion [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | 2,205 | 1,960 | 1,771 |
Deposit services [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | 2,587 | 1,980 | 2,266 |
Stationery and supplies [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | 1,192 | 657 | 738 |
Telephone and data communication [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | 1,283 | 1,613 | 1,549 |
Loan and credit card processing [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | 1,113 | 1,327 | 419 |
Foreclosed assets (income) expense, net [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | -1,420 | 1,202 | 4,914 |
Postage [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | 775 | 713 | 718 |
Other [Member] | |||
Components Of Other Expenses [Line Items] | |||
Other Noninterest Expense | $1,230 | $1,039 | $1,905 |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
RELATED PARTY TRANSACTIONS [Abstract] | ||
Deposit From Related Party | $6,070,000 | $7,523,000 |
RELATED_PARTY_TRANSACTIONS_Sum
RELATED PARTY TRANSACTIONS (Summary of Aggregate Activity involving Related Party Borrowers) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
RELATED PARTY TRANSACTIONS [Abstract] | |||
Balance, beginning of year | $566 | $629 | $2,471 |
Disbursements | 13,843 | 543 | 625 |
Amounts repaid | -12,006 | -606 | -2,467 |
Balance, end of year | 2,403 | 566 | 629 |
Undisbursed commitments to related parties | $1,428 | $460 | $330 |
FAIR_VALUE_Schedule_of_Fair_Va
FAIR VALUE (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $511,883 | $425,044 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 511,883 | 425,044 |
Other-than-temporary impairment losses on equity securities | ||
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 381,442 | 320,721 |
Other-than-temporary impairment losses on equity securities | ||
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 100,949 | 96,563 |
Other-than-temporary impairment losses on equity securities | ||
Fair Value, Measurements, Recurring [Member] | U.S.Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 27,270 | 5,304 |
Other-than-temporary impairment losses on equity securities | ||
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 2,222 | 2,456 |
Other-than-temporary impairment losses on equity securities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 2,222 | 2,456 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S.Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 2,222 | 2,456 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 509,661 | 422,588 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 381,442 | 320,721 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 100,949 | 96,563 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S.Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 27,270 | 5,304 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S.Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale |
Recovered_Sheet1
FAIR VALUE (Schedule Of Fair Value Assets and Liabilities Measured on Non Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | $3,991 | $8,185 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 4,791 | 14,705 |
Foreclosed assets | 3,991 | 8,185 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | ||
Foreclosed assets | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 4,791 | 14,705 |
Foreclosed assets | 3,991 | 8,185 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | ||
Foreclosed assets |
DISCLOSURES_ABOUT_FAIR_VALUE_O1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
Securities available for sale | $511,883 | $425,044 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 50,095 | 78,006 |
Securities available for sale | 511,883 | 425,044 |
Loans and leases held for investment | 956,265 | 778,382 |
Collateral dependent impaired loans | 4,791 | 14,705 |
Loans held-for-sale | 105 | |
Cash surrender value of life insurance policies | 42,989 | 39,424 |
Other investments | 7,042 | 5,932 |
Investment in limited partnership | 7,276 | 9,204 |
Accrued interest receivable | 5,852 | 4,990 |
Financial Liabilities: | ||
Noninterest-bearing | 390,897 | 365,997 |
Interest-bearing | 975,798 | 808,182 |
Fed funds purchased and Repurchase agreements | 7,251 | 5,974 |
Short-term borrowings | 18,200 | |
Long-term borrowings | 6,000 | |
Subordinated debentures | 30,928 | 30,928 |
Limited partnership capital commitment | 914 | 962 |
Accrued Interest Payable | 137 | 186 |
Fair Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 50,095 | 78,006 |
Securities available for sale | 511,883 | 425,044 |
Loans and leases held for investment | 966,599 | 797,383 |
Collateral dependent impaired loans | 4,791 | 14,705 |
Loans held-for-sale | 105 | |
Cash surrender value of life insurance policies | 42,989 | 39,424 |
Other investments | 7,042 | 5,932 |
Investment in limited partnership | 7,276 | 9,204 |
Accrued interest receivable | 5,852 | 4,990 |
Financial Liabilities: | ||
Noninterest-bearing | 390,897 | 365,997 |
Interest-bearing | 976,002 | 808,182 |
Fed funds purchased and Repurchase agreements | 7,251 | 5,974 |
Short-term borrowings | 18,200 | |
Long-term borrowings | 6,000 | |
Subordinated debentures | 11,428 | 11,175 |
Limited partnership capital commitment | 914 | 962 |
Accrued Interest Payable | 137 | 186 |
Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 50,095 | 78,006 |
Securities available for sale | 2,222 | 2,456 |
Loans and leases held for investment | ||
Collateral dependent impaired loans | ||
Loans held-for-sale | 105 | |
Cash surrender value of life insurance policies | ||
Other investments | ||
Investment in limited partnership | ||
Accrued interest receivable | ||
Financial Liabilities: | ||
Noninterest-bearing | 390,897 | 365,997 |
Interest-bearing | ||
Fed funds purchased and Repurchase agreements | ||
Short-term borrowings | ||
Long-term borrowings | ||
Subordinated debentures | ||
Limited partnership capital commitment | ||
Accrued Interest Payable | ||
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | ||
Securities available for sale | 509,661 | 422,588 |
Loans and leases held for investment | 966,599 | 797,383 |
Collateral dependent impaired loans | 4,791 | 14,705 |
Loans held-for-sale | ||
Cash surrender value of life insurance policies | 42,989 | 39,424 |
Other investments | 7,042 | 5,932 |
Investment in limited partnership | 7,276 | 9,204 |
Accrued interest receivable | 5,852 | 4,990 |
Financial Liabilities: | ||
Noninterest-bearing | ||
Interest-bearing | 976,002 | 808,182 |
Fed funds purchased and Repurchase agreements | 7,251 | 5,974 |
Short-term borrowings | 18,200 | |
Long-term borrowings | 6,000 | |
Subordinated debentures | 11,428 | 11,175 |
Limited partnership capital commitment | 914 | 962 |
Accrued Interest Payable | 137 | 186 |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | ||
Securities available for sale | ||
Loans and leases held for investment | ||
Collateral dependent impaired loans | ||
Loans held-for-sale | ||
Cash surrender value of life insurance policies | ||
Other investments | ||
Investment in limited partnership | ||
Accrued interest receivable | ||
Financial Liabilities: | ||
Noninterest-bearing | ||
Interest-bearing | ||
Fed funds purchased and Repurchase agreements | ||
Short-term borrowings | ||
Long-term borrowings | ||
Subordinated debentures | ||
Limited partnership capital commitment | ||
Accrued Interest Payable |
DISCLOSURES_ABOUT_FAIR_VALUE_O2
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Off-Balance-Sheet Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments to extend credit [Member] | ||
Off-balance-sheet financial instruments: | ||
Notional Amount | $366,909 | $420,707 |
Standby letters of credit [Member] | ||
Off-balance-sheet financial instruments: | ||
Notional Amount | 6,787 | 8,703 |
Commercial and similar letters of credit [Member] | ||
Off-balance-sheet financial instruments: | ||
Notional Amount | $7,602 | $8,070 |
BUSINESS_COMBINATION_Narrative
BUSINESS COMBINATION (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 14, 2014 | |
BUSINESS COMBINATION [Line Items] | ||||
Acquisition related costs | $2,070,000 | |||
Core deposit intangible assets amortization period | 8 years | |||
SCVB [Member] | ||||
BUSINESS COMBINATION [Line Items] | ||||
Ownership acquired | 100.00% | |||
Purchase consideration | 15,338,000 | |||
Share price, per share | $6 | |||
Payment to cash out existing in-the-money warrants | 700,000 | |||
Acquisition related costs | 2,070,000 | |||
Core deposit intangible assets amortization period | 8 years | |||
Fair value | 61,345,000 | |||
Gross contractual amounts receivable | 71,470,000 | |||
Deferred income tax asset | 2,300,000 | |||
SCVB [Member] | Common Stock [Member] | ||||
BUSINESS COMBINATION [Line Items] | ||||
Purchase consideration | 12,300,000 | |||
SCVB [Member] | Preferred Stock [Member] | ||||
BUSINESS COMBINATION [Line Items] | ||||
Purchase consideration | $3,000,000 |
BUSINESS_COMBINATION_Summary_o
BUSINESS COMBINATION (Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed) (Details) (USD $) | 0 Months Ended | ||||
Nov. 14, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Goodwill | $6,908,000 | $5,544,000 | $5,544,000 | $5,544,000 | |
SCVB [Member] | |||||
Consideration | |||||
Cash | 15,338,000 | ||||
Equity Instruments | |||||
Contingent Consideration | |||||
Fair value of total consideration transferred | 15,338,000 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Cash and cash equivalents | 15,852,000 | ||||
Securities | 44,187,000 | ||||
Federal Home Loan Bank stock | 860,000 | ||||
Loans | 61,573,000 | ||||
Premises and equipment | 1,188,000 | ||||
Core deposit intangibles | 1,075,000 | ||||
Other assets | 5,719,000 | ||||
Total assets acquired | 130,454,000 | ||||
Deposits | 108,272,000 | ||||
Federal Home Loan Bank advances | 8,000,000 | ||||
Other liabilities | 208,000 | ||||
Total liabilities assumed | 116,480,000 | ||||
Total identifiable net assets | 13,974,000 | ||||
Goodwill | 1,364,000 | ||||
Fair value of total consideration transferred | $15,338,000 |
BUSINESS_COMBINATION_Schedule_
BUSINESS COMBINATION (Schedule of Pro Forma Financial Information) (Details) (SCVB [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SCVB [Member] | |||
Pro forma financial information | |||
Net interest Income | $56,095 | $53,189 | $55,545 |
Net income | $13,792 | $13,082 | $8,609 |
Basic earnings per share | $0.99 | $0.92 | $0.61 |
Diluted earnings per share | $0.98 | $0.92 | $0.61 |
PARENT_ONLY_CONDENSED_FINANCIA2
PARENT ONLY CONDENSED FINANCIAL STATEMENTS (Schedule of Condensed Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and due from banks | $48,405 | $51,342 | ||
Other assets | 37,481 | 40,461 | ||
Total Assets | 1,637,320 | 1,410,249 | ||
Liabilities: | ||||
Other liabilities | 21,155 | 17,494 | ||
Total liabilities | 1,450,229 | 1,228,575 | ||
Shareholders' equity: | ||||
Common stock | 64,153 | 65,780 | ||
Retained Earnings | 116,026 | 112,817 | ||
Accumulated other comprehensive income, net of taxes | 4,307 | 429 | ||
Total shareholders' equity | 187,091 | 181,674 | 173,892 | 168,564 |
Total liabilities and shareholders' equity | 1,637,320 | 1,410,249 | ||
Parent [Member] | ||||
ASSETS | ||||
Cash and due from banks | 2,801 | 1,337 | ||
Investment in other securities | 2,193 | 2,421 | ||
Other assets | 14 | 310 | ||
Total Assets | 218,655 | 213,322 | ||
Liabilities: | ||||
Other liabilities | 636 | 720 | ||
Subordinated debentures | 30,928 | 30,928 | ||
Total liabilities | 31,564 | 31,648 | ||
Shareholders' equity: | ||||
Common stock | 66,758 | 68,428 | ||
Retained Earnings | 116,026 | 112,817 | ||
Accumulated other comprehensive income, net of taxes | 4,307 | 429 | ||
Total shareholders' equity | 187,091 | 181,674 | ||
Total liabilities and shareholders' equity | 218,655 | 213,322 | ||
Parent [Member] | Subsidiaries [Member] | ||||
ASSETS | ||||
Investments | 212,719 | 208,326 | ||
Parent [Member] | Trust Subsidiaries [Member] | ||||
ASSETS | ||||
Investments | $928 | $928 |
PARENT_ONLY_CONDENSED_FINANCIA3
PARENT ONLY CONDENSED FINANCIAL STATEMENTS (Schedule of Condensed Income Statement) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income: | |||||||||||
Dividend | $90 | $17 | $84 | ||||||||
Gain on sale of securities | 667 | 6 | 1,762 | ||||||||
Expense | |||||||||||
Salaries and employee benefits | 22,926 | 21,920 | 20,734 | ||||||||
Income before income taxes | 5,300 | 5,327 | 5,760 | 5,044 | 4,764 | 4,030 | 5,130 | 2,538 | 21,431 | 16,462 | 7,841 |
Income tax benefit | 1,647 | 1,776 | 1,523 | 1,245 | 895 | 663 | 1,331 | 204 | 6,191 | 3,093 | -344 |
Comprehensive income | 19,118 | 10,078 | 8,057 | ||||||||
Parent [Member] | |||||||||||
Income: | |||||||||||
Gain on sale of securities | 238 | ||||||||||
Other operating income | 80 | 16 | 10 | ||||||||
Total Income | 15,818 | 3,016 | 10 | ||||||||
Expense | |||||||||||
Salaries and employee benefits | 347 | 349 | 254 | ||||||||
Other expenses | 1,195 | 1,313 | 1,365 | ||||||||
Total expenses | 1,542 | 1,662 | 1,619 | ||||||||
Income before income taxes | 14,276 | 1,354 | -1,609 | ||||||||
Income tax benefit | -690 | -803 | -663 | ||||||||
Income (loss) before equity in undistributed income of subsidiary | 14,966 | 2,157 | -946 | ||||||||
Equity in undistributed income of subsidiary | 274 | 11,212 | 9,131 | ||||||||
Comprehensive income | 15,240 | 13,369 | 8,185 | ||||||||
Subsidiary [Member] | Parent [Member] | |||||||||||
Income: | |||||||||||
Dividend | $15,500 | $3,000 |
PARENT_ONLY_CONDENSED_FINANCIA4
PARENT ONLY CONDENSED FINANCIAL STATEMENTS (Schedule of Condensed Cash Flow Statement) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | |||
Net Income | $15,240,000 | $13,369,000 | $8,185,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of securities | -667,000 | -6,000 | -1,762,000 |
Decrease (increase) in other assets | -5,884,000 | -2,225,000 | -610,000 |
Increase in other liabilities | 3,453,000 | 1,514,000 | 1,646,000 |
Tax benefit (provision) from equity based compensation | -63,000 | -110,000 | -200,000 |
Net cash provided by operating activities | 28,544,000 | 34,538,000 | 38,697,000 |
Cash flows from investing activities: | |||
Purchases of securities | -150,515,000 | -160,251,000 | -150,305,000 |
Sales of securities | 29,452,000 | 4,135,000 | 63,776,000 |
Net cash (used in) provided by investing activities | -144,742,000 | 20,604,000 | -132,319,000 |
Cash flows from financing activities: | |||
Stock options exercised | 1,300,000 | 1,396,000 | 63,000 |
Repurchase of common stock | -10,183,000 | ||
Dividends paid | -4,775,000 | -3,680,000 | -3,385,000 |
Net cash provided by (used in) financing activities | 88,287,000 | -38,954,000 | 92,404,000 |
(Decrease) increase in cash and due from banks | -27,911,000 | 16,188,000 | -1,218,000 |
Cash and cash equivalents, beginning of year | 78,006,000 | 61,818,000 | 63,036,000 |
Cash and cash equivalents, end of year | 50,095,000 | 78,006,000 | 61,818,000 |
Parent [Member] | |||
Cash flows from operating activities: | |||
Net Income | 15,240,000 | 13,369,000 | 8,185,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Undistributed net income of subsidiary | -274,000 | -11,212,000 | -9,131,000 |
Gain on sale of securities | -238,000 | ||
Decrease (increase) in other assets | 325,000 | -75,000 | 583,000 |
Increase in other liabilities | -71,000 | 106,000 | 50,000 |
Tax benefit (provision) from equity based compensation | 29,000 | -36,000 | |
Net cash provided by operating activities | 14,982,000 | 2,217,000 | -349,000 |
Cash flows from investing activities: | |||
Purchases of securities | -37,000 | ||
Sales of securities | 402,000 | ||
Net cash (used in) provided by investing activities | 365,000 | ||
Cash flows from financing activities: | |||
Stock options exercised | 1,075,000 | 1,088,000 | 51,000 |
Repurchase of common stock | -10,183,000 | ||
Dividends paid | -4,775,000 | -3,680,000 | -3,385,000 |
Net cash provided by (used in) financing activities | -13,883,000 | -2,592,000 | -3,334,000 |
(Decrease) increase in cash and due from banks | 1,464,000 | -375,000 | -3,683,000 |
Cash and cash equivalents, beginning of year | 1,337,000 | 1,712,000 | 5,395,000 |
Cash and cash equivalents, end of year | $2,801,000 | $1,337,000 | $1,712,000 |
CONDENSED_QUARTERLY_RESULTS_OF2
CONDENSED QUARTERLY RESULTS OF OPERATIONS (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effect Of Quarterly Financial Information [Line Items] | |||||||||||
Interest income | $14,509 | $13,978 | $13,682 | $12,952 | $13,188 | $12,791 | $13,090 | $12,716 | $55,121 | $51,785 | $54,902 |
Interest expense | 641 | 686 | 732 | 737 | 743 | 790 | 815 | 873 | 2,796 | 3,221 | 4,321 |
Net interest income | 13,868 | 13,292 | 12,950 | 12,215 | 12,445 | 12,001 | 12,275 | 11,843 | 52,325 | 48,564 | 50,581 |
Provision for loan and lease losses | 200 | 150 | 1,500 | 800 | 450 | 1,600 | 350 | 4,350 | 14,210 | ||
Non-interest income | 4,321 | 3,785 | 4,018 | 3,707 | 4,607 | 4,319 | 4,022 | 4,115 | 15,831 | 17,063 | 18,126 |
Non-interest expense | 12,889 | 11,750 | 11,008 | 10,728 | 10,788 | 11,490 | 10,717 | 11,820 | 46,375 | 44,815 | 46,656 |
Income before income taxes | 5,300 | 5,327 | 5,760 | 5,044 | 4,764 | 4,030 | 5,130 | 2,538 | 21,431 | 16,462 | 7,841 |
Provision for taxes | 1,647 | 1,776 | 1,523 | 1,245 | 895 | 663 | 1,331 | 204 | 6,191 | 3,093 | -344 |
Net income | $3,653 | $3,551 | $4,237 | $3,799 | $3,869 | $3,367 | $3,799 | $2,334 | $15,240 | $13,369 | $8,185 |
Diluted earnings per share | $0.26 | $0.25 | $0.31 | $0.26 | $0.27 | $0.23 | $0.27 | $0.16 | $1.08 | $0.94 | $0.58 |
Cash dividend per share | $0.09 | $0.09 | $0.08 | $0.08 | $0.07 | $0.07 | $0.06 | $0.06 |