Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 12, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'TALMER BANCORP, INC. | ' |
Entity Central Index Key | '0001360683 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 70,503,920 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and due from banks | $91,214 | $97,167 | ||
Interest-bearing deposits with other banks | 121,952 | 206,160 | ||
Federal funds sold and other short-term investments | 85,500 | 72,029 | ||
Total cash and cash equivalents | 298,666 | 375,356 | ||
Securities available-for-sale | 734,489 | 620,083 | ||
Federal Home Loan Bank stock | 17,426 | 16,303 | ||
Loans held for sale | 122,599 | 85,252 | ||
Loans: | ' | ' | ||
Total loans, excluding covered loans | 3,631,333 | 2,473,916 | ||
Less: Allowance for loan losses - uncovered | -29,892 | -17,746 | ||
Net loans - excluding covered loans | 3,601,441 | 2,456,170 | ||
Covered loans | 403,792 | 530,068 | ||
Less: Allowance for loan losses - covered | -25,768 | -40,381 | ||
Net loans - covered | 378,024 | 489,687 | ||
Net total loans | 3,979,465 | 2,945,857 | ||
Premises and equipment | 49,462 | 51,001 | ||
FDIC indemnification asset | 82,441 | 131,861 | ||
Other real estate owned | 44,940 | 29,955 | ||
Loan servicing rights | 74,380 | 78,603 | ||
Core deposit intangible | 13,696 | 13,205 | ||
FDIC receivable | 12,873 | 7,783 | ||
Company-owned life insurance | 96,605 | 39,500 | ||
Income tax benefit | 181,318 | 126,200 | ||
Other assets | 35,810 | 26,402 | ||
Total assets | 5,744,170 | 4,547,361 | ||
Deposits: | ' | ' | ||
Noninterest-bearing demand deposits | 908,343 | 779,379 | ||
Interest-bearing demand deposits | 673,336 | 598,281 | ||
Money market and savings deposits | 1,173,697 | 1,215,864 | ||
Time deposits | 1,256,981 | 927,313 | ||
Other brokered funds | 473,240 | 80,000 | ||
Total deposits | 4,485,597 | 3,600,837 | ||
FDIC clawback liability | 25,723 | 24,887 | ||
FDIC warrants payable | 4,563 | 4,118 | ||
Short-term borrowings | 150,573 | 71,876 | ||
Long-term debt | 285,009 | 199,037 | ||
Other liabilities | 46,053 | 29,591 | ||
Total liabilities | 4,997,518 | 3,930,346 | ||
Shareholders' equity | ' | ' | ||
Preferred stock - $1.00 par value Authorized - 20,000,000 shares at 9/30/2014 and 12/31/2013 Issued and outstanding - 0 shares at 9/30/2014 and 12/31/2013 | ' | ' | ||
Common stock: | ' | ' | ||
Additional paid-in-capital | 404,068 | 366,428 | ||
Retained earnings | 269,993 | 192,349 | ||
Accumulated other comprehensive income (loss), net of tax | 2,087 | -7,996 | ||
Total shareholders' equity | 746,652 | 617,015 | ||
Total liabilities and shareholders' equity | 5,744,170 | 4,547,361 | ||
Class A Voting Common Stock | ' | ' | ||
Common stock: | ' | ' | ||
Common Stock | 70,504 | 66,234 | ||
Class B Non-Voting Common Stock | ' | ' | ||
Common stock: | ' | ' | ||
Common Stock | ' | ' | ||
Residential real estate | ' | ' | ||
Loans: | ' | ' | ||
Total loans, excluding covered loans | 1,430,939 | [1] | 1,085,453 | [1] |
Commercial real estate | ' | ' | ||
Loans: | ' | ' | ||
Total loans, excluding covered loans | 1,213,361 | 755,839 | ||
Commercial and industrial | ' | ' | ||
Loans: | ' | ' | ||
Total loans, excluding covered loans | 790,867 | 446,644 | ||
Real estate construction | ' | ' | ||
Loans: | ' | ' | ||
Total loans, excluding covered loans | 102,920 | [1] | 176,226 | [1] |
Consumer | ' | ' | ||
Loans: | ' | ' | ||
Total loans, excluding covered loans | $93,246 | $9,754 | ||
[1] | Amounts represent loans for which the Company has elected the fair value option. See Note 3. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, Authorized shares | 20,000,000 | 20,000,000 |
Preferred stock, Issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Residential real estate | ' | ' |
Total loans, excluding covered loans, measured at fair value (in dollars) | $17.90 | $16.30 |
Real estate construction | ' | ' |
Total loans, excluding covered loans, measured at fair value (in dollars) | ' | $1.40 |
Class A Voting Common Stock | ' | ' |
Common Stock, par value (in dollars per share) | $1 | $1 |
Common Stock, Authorized shares | 198,000,000 | 198,000,000 |
Common Stock, Issued shares | 70,503,920 | 66,234,397 |
Common stock, outstanding shares | 70,503,920 | 66,234,397 |
Class B Non-Voting Common Stock | ' | ' |
Common Stock, par value (in dollars per share) | $1 | $1 |
Common Stock, Authorized shares | 2,000,000 | 2,000,000 |
Common Stock, Issued shares | 0 | 0 |
Common stock, outstanding shares | 0 | 0 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest income | ' | ' | ' | ' |
Interest and fees on loans | $58,108 | $49,475 | $168,446 | $149,503 |
Taxable | 2,345 | 1,751 | 6,421 | 4,217 |
Tax-exempt | 1,341 | 1,132 | 4,432 | 3,132 |
Total interest on securities | 3,686 | 2,883 | 10,853 | 7,349 |
Interest on interest earning cash balances | 158 | 97 | 546 | 588 |
Interest on federal funds and other short term investments | 186 | 279 | 641 | 726 |
Dividends on FHLB stock | 120 | 167 | 465 | 712 |
FDIC indemnification asset | -6,663 | -6,032 | -18,887 | -21,088 |
Total interest income | 55,595 | 46,869 | 162,064 | 137,790 |
Interest Expense | ' | ' | ' | ' |
Interest-bearing demand deposits | 190 | 174 | 630 | 500 |
Money market and savings deposits | 487 | 447 | 1,473 | 1,459 |
Time deposits | 1,611 | 1,408 | 4,534 | 4,614 |
Other brokered funds | 288 | 38 | 352 | 110 |
Interest on short-term borrowings | 122 | 26 | 330 | 81 |
Interest on long-term debt | 701 | 775 | 1,902 | 2,313 |
Total interest expense | 3,399 | 2,868 | 9,221 | 9,077 |
Net interest income | 52,196 | 44,001 | 152,843 | 128,713 |
Provision for loan losses - uncovered | 7,784 | 2,852 | 17,427 | 8,951 |
Benefit for loan losses - covered | -6,275 | -727 | -16,094 | -7,103 |
Net interest income after provision for loan losses | 50,687 | 41,876 | 151,510 | 126,865 |
Noninterest income | ' | ' | ' | ' |
Deposit fee income | 3,022 | 3,547 | 9,459 | 12,707 |
Mortgage banking and other loan fees | 2,065 | 7,173 | 2,040 | 23,187 |
Net gain on sales of loans | 4,083 | 4,835 | 12,796 | 37,789 |
Net gain on sale of branches | 14,410 | ' | 14,410 | ' |
Bargain purchase gain | ' | ' | 41,977 | 71,702 |
FDIC loss sharing income | -2,420 | -4,846 | -5,967 | -7,059 |
Accelerated discount on acquired loans | 3,663 | 4,345 | 14,455 | 10,558 |
Net gain (loss) on sales of securities | 244 | ' | -2,066 | 100 |
Other income | 4,928 | 2,930 | 14,518 | 8,597 |
Total noninterest income | 29,995 | 17,984 | 101,622 | 157,581 |
Noninterest expenses | ' | ' | ' | ' |
Salary and employee benefits | 29,752 | 29,766 | 95,872 | 116,772 |
Occupancy and equipment expense | 8,047 | 6,582 | 25,132 | 20,409 |
Data processing fees | 1,610 | 3,539 | 5,610 | 7,099 |
Professional service fees | 2,985 | 4,418 | 9,825 | 12,666 |
FDIC loss sharing expense | 245 | 106 | 1,752 | 1,524 |
Bank acquisition and due diligence fees | 239 | 171 | 2,218 | 7,874 |
Marketing expense | 1,005 | 634 | 3,703 | 2,825 |
Other employee expense | 663 | 943 | 2,163 | 2,648 |
Insurance expense | 1,364 | 1,911 | 4,016 | 8,123 |
Other expense | 5,353 | 5,303 | 20,491 | 17,865 |
Total noninterest expenses | 51,263 | 53,373 | 170,782 | 197,805 |
Income before income taxes | 29,419 | 6,487 | 82,350 | 86,641 |
Income tax provision (benefit) | 9,904 | -4,057 | 4,002 | 636 |
Net income | $19,515 | $10,544 | $78,348 | $86,005 |
Earnings per common share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.28 | $0.16 | $1.13 | $1.30 |
Diluted (in dollars per share) | $0.26 | $0.15 | $1.04 | $1.23 |
Average common shares outstanding - basic (in shares) | 70,092 | 66,229 | 69,414 | 66,229 |
Average common shares outstanding - diluted (in shares) | 75,752 | 69,853 | 74,948 | 69,792 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' | |||
Net income | $19,515 | $10,544 | $78,348 | $86,005 | |||
Other comprehensive income (loss): | ' | ' | ' | ' | |||
Unrealized holding gains (losses) on securities available-for-sale arising during the period | 20 | 297 | 13,447 | -14,181 | |||
Reclassification adjustment for (gains) losses on realized income | -244 | [1] | ' | 2,066 | [1] | -100 | [1] |
Net unrealized gains (losses) on securities available-for-sale | -224 | 297 | 15,513 | -14,281 | |||
Tax effect | 78 | -104 | -5,430 | 4,998 | |||
Other comprehensive income (loss), net of tax | -146 | 193 | 10,083 | -9,283 | |||
Total comprehensive income, net of tax | $19,369 | $10,737 | $88,431 | $76,722 | |||
[1] | Amounts are included in "Net gain (loss) on sales of securities" in the Consolidated Statements of Income within total noninterest income. Income tax expense (benefit) associated with the reclassification adjustments for the three months ended September 30, 2014 and 2013 was $85 thousand and $0, respectively, and for the nine months ended September 30, 2014 and 2013 was ($723) thousand and $35 thousand, respectively, and are included in "Income tax provision (benefit)" in the Consolidated Statements of Income. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Income tax expense (benefit) associated with the reclassification adjustments | $85 | $0 | ($723) | $35 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2012 | $520,743 | $66,229 | $356,836 | $93,760 | $3,918 |
Balance (in shares) at Dec. 31, 2012 | ' | 66,229 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Cumulative effect adjustment of change in accounting policy to beginning retained earnings | 31 | ' | ' | 31 | ' |
Net income | 86,005 | ' | ' | 86,005 | ' |
Other comprehensive income (loss) | -9,283 | ' | ' | ' | -9,283 |
Stock-based compensation expense | 9,335 | ' | 9,335 | ' | ' |
Balance at Sep. 30, 2013 | 606,831 | 66,229 | 366,171 | 179,796 | -5,365 |
Balance (in shares) at Sep. 30, 2013 | ' | 66,229 | ' | ' | ' |
Balance at Dec. 31, 2013 | 617,015 | 66,234 | 366,428 | 192,349 | -7,996 |
Balance (in shares) at Dec. 31, 2013 | ' | 66,234 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 78,348 | ' | ' | 78,348 | ' |
Other comprehensive income (loss) | 10,083 | ' | ' | ' | 10,083 |
Stock-based compensation expense | 798 | ' | 798 | ' | ' |
Issuance of common shares | 41,112 | 3,892 | 37,220 | ' | ' |
Issuance of common shares (in shares) | ' | 3,892 | ' | ' | ' |
Restricted stock awards | ' | 378 | -378 | ' | ' |
Restricted stock awards (in shares) | ' | 378 | ' | ' | ' |
Cash dividends declared on common stock ($0.01 per share) | -704 | ' | ' | -704 | ' |
Balance at Sep. 30, 2014 | $746,652 | $70,504 | $404,068 | $269,993 | $2,087 |
Balance (in shares) at Sep. 30, 2014 | ' | 70,504 | ' | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Consolidated Statements of Changes in Shareholders' Equity | ' |
Cash dividends declared on common stock (in dollars per share) | $0.01 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flow (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $78,348 | $86,005 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 4,781 | 6,365 |
Amortization of core deposit intangibles | 2,140 | 2,019 |
Stock-based compensation expense | 798 | 9,335 |
Provisions for loan losses | 1,333 | 1,848 |
Originations of loans held for sale | -760,802 | -2,093,887 |
Proceeds from sales of loans | 692,560 | 2,150,541 |
Net gain from sales of loans | -12,796 | -37,789 |
Net gain on sale of branches | -14,410 | ' |
Net (gain)/loss on sales of securities | 2,066 | -100 |
Gain on acquisition | -41,977 | -71,702 |
Valuation writedowns on other real estate | 4,466 | 5,722 |
Valuation change in Company-owned life insurance | -1,886 | -991 |
Valuation change in loan servicing rights | 11,036 | -3,997 |
Net additions to loan servicing rights | -6,046 | -20,130 |
Net decrease in FDIC indemnification asset and receivable | 44,330 | 82,500 |
Net gain on sales of other real estate owned | -6,660 | -3,097 |
Net (increase)/decrease in accrued interest receivable and other assets | -15,980 | 6,667 |
Net increase in accrued expenses and other liabilities | 13,222 | 2,992 |
Net securities premium amortization | 3,846 | 5,905 |
Deferred income tax expense | 19,193 | 4,088 |
Change in valuation allowance of deferred income tax asset | -10,127 | -6,006 |
Other, net | 520 | -188 |
Net cash from (used in) operating activities | 7,955 | 126,100 |
Cash flows from investing activities | ' | ' |
Net increase in uncovered loans | -561,623 | -210,823 |
Net decrease in covered loans | 105,748 | 146,740 |
Purchases of loans | -53,556 | ' |
Purchases of FHLB stock | -6,300 | -490 |
Purchases of securities available-for-sale | -257,534 | -405,897 |
Purchases of Company-owned life insurance | -55,219 | ' |
Purchases of premises and equipment | -10,502 | -2,192 |
Proceeds from: | ' | ' |
Maturities and redemptions of securities available-for-sale | 83,852 | 221,101 |
Redemption of FHLB stock | 11,110 | ' |
Sale of securities available-for-sale | 82,496 | 7,500 |
Sale of loans | 73,437 | ' |
Sale of other real estate owned | 36,965 | 26,385 |
Sale of premises and equipment | 10,673 | 667 |
Sale of deposits | -389,476 | ' |
Net cash provided from acquisition | 209,831 | 394,805 |
Net cash from (used in) investing activities | -720,098 | 177,796 |
Cash flows from financing activities | ' | ' |
Net increase (decrease) in deposits | 430,394 | -188,770 |
Net increase in short-term borrowings | 113,679 | 99,735 |
Issuances of long-term FHLB advances | 110,000 | 30,000 |
Repayments of long-term FHLB advances | -22,902 | -113,979 |
Repayments on long-term sweep repurchase agreements | -1,226 | -1,219 |
Repayments of senior unsecured line of credit | -35,000 | ' |
Other changes in long-term debt | 100 | 559 |
Proceeds from issuance of common stock | 41,112 | ' |
Cash dividends declared on common stock ($0.01 per share) | -704 | ' |
Net cash from (used in) financing activities | 635,453 | -173,674 |
Net change in cash and cash equivalents | -76,690 | 130,222 |
Beginning cash and cash equivalents | 375,356 | 362,771 |
Ending cash and cash equivalents | 298,666 | 492,993 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid | 9,450 | 8,637 |
Income taxes paid | 5,808 | 15,795 |
Transfer from loans to other real estate owned | 18,203 | 16,065 |
Loans securitized | ' | 10,359 |
Net transfer of loans held for investment to loans held for sale | 21,266 | ' |
Transfer from premises and equipment to other bank owned property | 675 | 3,167 |
Increase in assets and liabilities in acquisitions: | ' | ' |
Securities | 13,619 | 139,764 |
FHLB stock | 5,933 | 12,993 |
Loans held-for-sale | ' | 213,946 |
Uncovered loans | 571,666 | 1,530,376 |
Premises and equipment | 4,912 | 22,168 |
Loan servicing rights | 767 | 41,967 |
Company-owned life insurance | ' | 38,172 |
Other real estate owned | 30,878 | 18,448 |
Core deposit intangible | 3,633 | 9,816 |
Other assets | 62,542 | 128,278 |
Deposits | 857,769 | 2,121,258 |
Short-term borrowings | 18 | 21,892 |
Long-term debt | ' | 312,956 |
Other liabilities | $4,017 | $22,925 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flow (Parenthetical) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Consolidated Statements of Cash Flow | ' |
Cash dividends declared on common stock (in dollars per share) | $0.01 |
BASIS_OF_PRESENTATION_AND_RECE
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2014 | |
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | ' |
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | ' |
1. BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | |
The accompanying unaudited consolidated financial statements of Talmer Bancorp, Inc. (“the Company”), and its wholly-owned subsidiaries have been prepared in accordance with United States (U.S.) generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the Consolidated Financial Statements, primarily consisting of normal recurring adjustments, have been included. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or for any other interim period. Certain items in prior periods were reclassified to conform to the current presentation. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s consolidated financial statements and footnotes included in the Annual Report of Talmer Bancorp, Inc. on Form 10-K for the year ended December 31, 2013. | |
On February 11, 2014, the Securities and Exchange Commission declared effective the Company’s registration statement on Form S-1 registering the shares of the Company’s common stock as “TLMR” on the Nasdaq Capital Market. On February 14, 2014, the Company completed the initial public offering of 15,555,555 shares of Class A common stock for $13 per share. Of the 15,555,555 shares sold, 3,703,703 shares were sold by the Company and 11,851,852 shares were sold by certain selling shareholders. In addition, on February 21, 2014, the selling shareholders sold an additional 2,333,333 shares of Class A common stock to cover the exercise of the underwriters’ over-allotment option. The Company received net proceeds of approximately $42.0 million from the offering, after deducting the underwriting discounts and commissions and estimated offering expenses. The Company did not receive any proceeds from the sale of shares by the selling shareholders. | |
On July 18, 2014, Talmer West Bank sold its single branch office in Albuquerque, New Mexico along with its $34.1 million of deposits and $23.7 million of loans to Grants State Bank, a unit of First Bancorp of Durango, Inc. The net impact to pre-tax income related to this transaction recorded in the third quarter of 2014 is a $1.6 million benefit, representing the gain on the sale of net assets acquired and liabilities assumed, partially offset by the write-off of related cored deposit intangible of $91 thousand and other costs associated with the transaction of approximately $170 thousand. The benefit of $1.6 million is recorded in “Net gain on sale of branches” on the Consolidated Statements of Income. | |
On August 8, 2014 we sold our 10 branch offices located in Wisconsin to Town Bank, a wholly owned bank subsidiary of Wintrust Financial Corporation. Town Bank assumed all of our deposits in Wisconsin totaling $354.8 million as of August 8, 2014. Concurrent with the closing of this transaction, Town Bank will sell two of the branch locations and related deposits in Kenosha and Genoa City, Wisconsin to its affiliate, State Bank of the Lakes, a Wintrust community bank. The net impact to pre-tax income related to this transaction recorded in the third quarter of 2014 is a $12.8 million benefit, representing the gain on the sale of net assets acquired and liabilities assumed, partially offset by the write-off of the related core deposit intangible of $911 thousand and other costs associated with the transaction of approximately $248 thousand. The benefit of $12.8 million is recorded in “Net gain on sale of branches” on the Consolidated Statements of Income. | |
In August of 2014, the Company entered into an agreement to acquire First of Huron Corporation, the holding company for Signature Bank headquartered in Bad Axe, Michigan, for aggregate cash consideration of $13.4 million. Signature Bank had total assets of $233.5 million as of September 30, 2014, including $172.9 million of net total loans. The Company will acquire and simultaneously retire certain outstanding subordinated debentures of First of Huron Corporation and assume its trust preferred securities. The closing of the transaction is pending regulatory approval and customary closing conditions, including the approval by the shareholders of First of Huron Corporation. The transaction is expected to close in the first quarter of 2015. | |
Customer Initiated Derivatives | |
In the first quarter of 2014, the Company began entering into interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies (“customer-initiated derivatives”). Therefore, these derivatives are not used to manage interest rate risk in the Company’s assets or liabilities. The Company generally takes offsetting positions with dealer counterparties to mitigate the valuation risk of the customer-initiated derivatives. Income primarily results from the spread between the customer derivatives and the offsetting dealer positions. The accounting for changes in the fair value (i.e. gains or losses) of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship and, further by the type of hedging relationship. The Company presents derivative instruments at fair value in the Consolidated Balance Sheets on a net basis when a right of offset exists, based on transactions with a single counterparty and any cash collateral paid to and/or received from that counterparty for derivative contracts that are subject to legally enforceable master netting arrangements. The Company has no derivatives designated as qualifying accounting hedging instruments. For derivative instruments not designated as hedging instruments, the gain or loss derived from changes in fair value are recognized in current earnings during the period of change. | |
Earnings Per Share | |
On June 10, 2014, the Company awarded restricted stock to certain employees and directors of the Company which qualify as participating securities. As such, beginning in June of 2014, the Company applies the two-class method of computing earnings per share. Under this calculation, all outstanding unvested share-based payment awards that contain right to nonforfeitable dividends are considered participating securities and earnings per share is determined according to dividends declared, when applicable, and participating rights in undistributed earnings. | |
Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Distributed and undistributed earnings are allocated between common and participating security shareholders based on their respective rights and then are divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options and warrants. | |
Deferred Compensation Plan | |
As of June 26, 2014 the Company maintains a deferred compensation plan to certain key employees and members of the Board of Directors which allows participants to defer a portion of their compensation. Participants have the ability to begin deferrals into the Deferred Compensation Plan beginning July 1, 2014. While the Company maintains ownership of the deferred compensation asset, the participants are able to direct the investment of the assets into a pre-determined selection of investment options. Company stock is not an investment option for the participants. The assets are recorded at fair value in other assets on the Consolidated Balance Sheets. A liability is established, in other liabilities on the Consolidated Balance Sheets, for the fair value of the obligation to the participants. Any increase or decrease in the fair value of the deferred compensation plan assets is recorded in “Other noninterest income” on the Consolidated Statements of Income. Any increase or decrease in the fair value of the deferred compensation obligation to participants is recorded as additional compensation expense or a reduction of compensation expense on the Consolidated Statements of Income. | |
Recently Adopted and Issued Accounting Standards | |
In January of 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure” (“ASU 2014-04”), which clarifies the time at which a creditor is considered to have physical possession of residential real estate that is collateral for a residential mortgage loan. The creditor is considered to have physical possession when legal title to the collateral or a deed in lieu of foreclosure or similar legal agreement is completed. Consequently it should reclassify the loan to other real estate owned at that time. ASU 2014-04 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2014, as such, the Company will adopt ASU 2014-04 as of January 1, 2015. Under the provisions, the Company will have the option to adopt the amendments in the ASU using either a modified retrospective transition method or a prospective transition method. The Company is currently evaluating the provisions of ASU 2014-04. | |
In April of 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08”), which raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The ASU is intended to reduce the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results and will permit companies to have continuing cash flows and significant continuing involvement with the disposed component. ASU 2014-08 is effective for disposals (or classifications as held for sale) and acquired businesses or nonprofit activities that are classified as held for sale upon acquisition that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. As such, the Company will evaluate the provisions of ASU 2014-08 as it relates to any potential disposals or acquisitions beginning on or after January 1, 2015. | |
In May of 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including revenue recognition guidance. The core principle of the revenue model is that an entity recognizes 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 ASU is intended to clarify and converge the revenue recognition principles under U.S. GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. ASU 2014-09 is effective for public companies for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. As such, the Company will adopt ASU 2014-09 as of January 1, 2017. Under the provision, the Company will have the option to adopt the guidance using either a full retrospective method or a modified transition approach. The Company is currently evaluating the provisions of ASU 2014-09. | |
In June of 2014, the FASB issued ASU 2014-11, “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures” (“ASU 2014-11”), which amends Accounting Standards Codification (“ASC”) 860 to require entities to account for repurchase-to-maturity transactions as secured borrowings, eliminate accounting guidance on linked repurchase financing transactions and expand disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers accounted for as secured borrowings. The disclosure requirements related to transactions accounted for as a sale and all of the accounting guidance within ASU 2014-11are effective for public companies for interim and annual periods beginning after December 15, 2014, and require the new guidance to be applied by making a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The disclosure requirements related to repurchase agreements, securities lending transactions and repurchase-to-maturity transactions accounted for as secured borrowings within ASU 2014-11 are effective for public companies for annual periods beginning after December 15, 2014 and for interim periods beginning after March 15, 2015. As such, the Company will adopt the accounting guidance under ASU 2014-11 as of January 1, 2015. The Company is currently evaluating the provisions of ASU 2014-11. | |
In August of 2014, the FASB issued ASU 2014-14, “Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure” (“ASU 2014-14”), which addresses foreclosed mortgage loans that are fully or partially guaranteed under government programs to reduce diversity in practice of classification. The update requires that upon foreclosure, a mortgage loan be derecognized and a separate other receivable be recognized if the loan has an inseparable guarantee before foreclosure, if the creditor has the intent to transfer the property to the guarantor and make a claim on the guarantee to recover under the claim, and if at foreclosure the claim determined is fixed, on the basis of fair value. ASU 2014-14 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. As such, the Company will adopt the accounting guidance under ASU 2014-14 as of January 1, 2015. Under the provision, the Company will have the option to adopt the guidance using either a prospective transition method or a modified retrospective transition method. The Company is currently evaluating the provisions of ASU 2014-14. | |
In August of 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which requires entity management to perform interim and annual assessments of their ability to continue as a going concern within one year after the date that the financial statements are issued and requires disclosure if substantial doubt is raised. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The disclosure requirements in ASU 2014-15 closely align with those under current auditing literature. Should substantial doubt be raised but alleviated as a result of management’s plans, the entity should disclose a statement that addresses the principal condition, management’s evaluation, and management’s plan which relieved such doubt. If the substantial doubt is raised but not alleviated, the entity should disclose the principal condition, management’s evaluation, and management’s plan that are intended to mitigate such conditions. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for interim periods beginning after December 15, 2016, with early application permitted. The Company has elected to adopt the provisions of ASU 2014-15 effective for the interim period ending September 30, 2014. The adoption had no effect on the Company’s financial condition and results of operation or disclosures. |
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
BUSINESS COMBINATIONS | ' | |||||||
BUSINESS COMBINATIONS | ' | |||||||
2. BUSINESS COMBINATIONS | ||||||||
The Company has determined that the acquisitions of Talmer West Bank (formerly known as Michigan Commerce Bank) and First Place Bank constitute business combinations as defined by the FASB ASC Topic 805, “Business Combinations.” Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition, as required. Fair values were determined based on the requirements of FASB ASC Topic 820, “Fair Value Measurement”. In many cases the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. | ||||||||
On January 1, 2014, the Company purchased 100% of the capital stock of Financial Commerce Corporation’s wholly-owned subsidiary banks, Michigan Commerce Bank, a Michigan state-chartered bank, Indiana Community Bank, an Indiana state-chartered bank, Bank of Las Vegas, a Nevada state-chartered bank and Sunrise Bank of Albuquerque, a New Mexico state-chartered bank, and certain other bank-related assets from Financial Commerce Corporation and its parent holding company, Capitol Bancorp Ltd., in a transaction facilitated under Section 363 of the U.S. Bankruptcy Code, for cash consideration of $4.0 million and a separate $2.5 million payment to fund an escrow account to pay the post-petition administrative fees and expenses of the professionals in the bankruptcy cases of Financial Commerce Corporation and Capital Bancorp, Ltd., each of which filed voluntary bankruptcy petitions under Chapter 11 of the U.S. Bankruptcy Code on August 9, 2012, with any unused escrowed funds to be refunded to the Company. | ||||||||
Immediately prior to consummation of the acquisition, Capitol Bancorp Ltd. merged Indiana Community Bank, Bank of Las Vegas and Sunrise Bank of Albuquerque with and into Michigan Commerce Bank, with Michigan Commerce Bank as the surviving bank in the merger. Simultaneously with the merger, Michigan Commerce Bank changed its name to Talmer West Bank. The Company contributed $99.5 million of additional capital during the three months ended March 31, 2014 to Talmer West Bank in order to recapitalize the bank. In order to support the acquisition and recapitalization of Talmer West Bank, the Company borrowed $35.0 million under a senior unsecured line of credit. The Company used a portion of the net proceeds from the initial public offering that closed on February 14, 2014 to repay the $35.0 million during the first quarter of 2014. For the three months ended September 30, 2014, the Company did not incur any acquisition expenses related to Talmer West Bank. The Company incurred $1.8 million of acquisition related expenses during the nine months ended September 30, 2014, related to the acquisition of Talmer West Bank, included within “Bank acquisition and due diligence fees” in the Consolidated Statements of Income. Twelve of the branches acquired, or 70% of the total number of branches acquired in the acquisition, fit squarely within the Company’s target market areas. | ||||||||
The assets and liabilities associated with the acquisition of Talmer West Bank were recorded in the consolidated balance sheets at estimated fair value as of the acquisition date. The following allocation is based on the information that was available to make preliminary estimates of the fair value and may change as additional information becomes available and additional analyses are completed. While the Company believes that information provided a reasonable basis for estimating the fair values, it expects that it could obtain additional information and evidence during the measurement period that may result in changes to the estimated fair value amounts. This measurement period ends on the earlier of one year after the acquisition date or the date we receive the information about the facts and circumstances that existed at the acquisition date. Subsequent adjustments are, and if necessary, will be retrospectively reflected in future filings. These refinements include: (1) changes in the estimated fair value of loans acquired and changes in the determination on whether such loans are considered purchased credit impaired; (2) changes in the estimated fair value of certain premises and equipment acquired; (3) changes in deferred tax assets related to fair value estimates and a change in the expected realization of items considered to be built in losses and (4) a change in the bargain purchase gain caused by the net effect of these adjustments. | ||||||||
(Dollars in thousands) | ||||||||
Consideration paid: | ||||||||
Cash | $ | 6,500 | ||||||
Fair value of identifiable assets acquired: | ||||||||
Cash and cash equivalents | 216,331 | |||||||
Investment securities | 13,619 | |||||||
Federal Home Loan Bank stock | 5,933 | |||||||
Loans | 571,666 | |||||||
Premises and equipment | 4,912 | |||||||
Loan servicing rights | 767 | |||||||
Other real estate owned | 30,878 | |||||||
Core deposit intangible | 3,633 | |||||||
Other assets | 62,542 | |||||||
Total identifiable assets acquired | 910,281 | |||||||
Fair value of liabilities assumed: | ||||||||
Deposits | 857,769 | |||||||
Other liabilities | 4,035 | |||||||
Total liabilities assumed | 861,804 | |||||||
Fair value of net identifiable assets acquired | 48,477 | |||||||
Bargain purchase gain resulting from acquisition | $ | 41,977 | ||||||
The estimated fair values presented in the above table reflect additional information that the Company obtained following the acquisition of Talmer West Bank, which resulted in changes to certain fair value estimates made as of the acquisition date within the measurement period. Material adjustments to the acquisition date estimated fair values are recorded in the period in which the acquisition occurred and, as a result, previously reported amounts changed. The estimated fair value of the deferred tax assets included within “other assets” and presented above, increased $1.8 million resulting in a net increase to the bargain purchase gain resulting from acquisition of $1.8 million to $42.0 million, which is recognized in the Consolidated Statement of Income for the nine months ended September 30, 2014. The increase in the fair value of the deferred tax asset resulted from the finalization of the 2013 tax returns in the third quarter of 2014 when it was discovered that the consolidated net operating losses as of December 31, 2013 for Capital Bancorp, Ltd. were larger than expected by $10.8 million. This change was primarily due to information that was provided by the FDIC related to seized banks that were part of the consolidated tax return of which Michigan Commerce Bank was a member. Because these seized banks had larger than expected net operating losses, they received a larger allocation of cancellation of debt income that reduced the allocation of cancellation of debt income to Michigan Commerce Bank, which is now Talmer West Bank. The resulting net operating losses attributable to Michigan Commerce Bank at acquisition increased by $5.2 million compared to previous estimates. This adjustment increased the estimated fair value of the deferred tax asset by $1.8 million as of January 1, 2014, compared to previously reported levels. | ||||||||
The Talmer West Bank acquisition resulted in a pre-tax bargain purchase gain of $42.0 million as the estimated fair value of assets acquired exceeded the estimated fair value of liabilities assumed and consideration paid. The gain was included within “Bargain purchase gain” in the Consolidated Statements of Income. | ||||||||
Loans acquired in the Talmer West Bank acquisition were initially recorded at fair value with no separate allowance for loan losses. The Company reviewed the loans at acquisition to determine which should be considered purchased credit impaired loans (i.e. loans accounted for under FASB ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”)) defining impaired loans as those that were either not accruing interest or exhibited credit risk factors consistent with nonperforming loans at the acquisition date. | ||||||||
Fair values for purchased loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of the loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Larger purchased loans are individually evaluated while smaller purchased loans are grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. | ||||||||
The Company accounts for purchased credit impaired loans in accordance with the provisions of ASC 310-30. The cash flows expected to be collected on purchased loans are estimated based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. Purchased loans are considered credit impaired if there is evidence of credit deterioration at the date of purchase and if it is probable that not all contractually required payments will be collected. Interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows is recognized on the acquired loans accounted for under ASC 310-30. | ||||||||
Purchased loans outside the scope of ASC 310-30 are accounted for under FASB ASC Subtopic 310-20, “Receivables - Nonrefundable Fees and Other Costs” (“ASC 310-20”). Premiums and discounts created when the loans were recorded at their fair values at acquisition are amortized over the remaining terms of the loans as an adjustment to the related loan’s yield. | ||||||||
Information regarding acquired loans accounted for under ASC 310-30 as well as those excluded from ASC 310-30 accounting at acquisition date is as follows: | ||||||||
(Dollars in thousands) | ||||||||
Accounted for under ASC 310-30: | ||||||||
Contractual cash flows | $ | 331,523 | ||||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 86,410 | |||||||
Expected cash flows | 245,113 | |||||||
Interest component of expected cash flows (accretable yield) | 32,764 | |||||||
Fair value at acquisition | $ | 212,349 | ||||||
Excluded from ASC 310-30 accounting: | ||||||||
Unpaid principal balance | $ | 362,782 | ||||||
Fair value discount | (3,465 | ) | ||||||
Fair value at acquisition | 359,317 | |||||||
Total fair value at acquisition | $ | 571,666 | ||||||
Talmer West Bank’s results of operations have been included in the Company’s financial results since the January 1, 2014 acquisition date. | ||||||||
The following unaudited pro forma financial information presents the consolidated results of operations of the Company and Talmer West Bank as if the acquisition had occurred as of January 1, 2013 with pro forma adjustments to give effect of any change in interest income due to the accretion of the discount (premium) associated with the fair value adjustments to acquired loans, any change in interest expense due to estimated premium amortization/discount accretion associated with the fair value adjustments to acquired time deposits and borrowings and other debt and the amortization of the core deposit intangible that would have resulted had the deposits been acquired as of January 1, 2013. | ||||||||
For the three months ended September 30, | ||||||||
(Dollars in thousands) | 2014 (1) | 2013 | ||||||
Net Interest and other income | $ | 82,191 | $ | 71,588 | ||||
Net Income | 19,515 | 10,719 | ||||||
Earnings per common share: | ||||||||
Basic | $ | 0.28 | $ | 0.16 | ||||
Diluted | 0.26 | 0.15 | ||||||
(1) As the business combination was effective January 1, 2014, there were no proforma adjustments for the three months ended September 30, 2014. | ||||||||
For the nine months ended September 30, | ||||||||
(Dollars in thousands) | 2014 (1) | 2013 | ||||||
Net Interest and other income | $ | 254,465 | $ | 319,968 | ||||
Net Income | 78,348 | 95,168 | ||||||
Earnings per common share: | ||||||||
Basic | $ | 1.13 | $ | 1.44 | ||||
Diluted | 1.04 | 1.36 | ||||||
(1) As the business combination was effective January 1, 2014, there were no proforma adjustments for the nine months ended September 30, 2014. | ||||||||
On January 1, 2013, the Company purchased substantially all of the assets of First Place Financial Corp. (FPFC) including all of the issued and outstanding shares of common stock of First Place Bank, a wholly-owned subsidiary of FPFC, headquartered in Warren, Ohio, in a transaction facilitated under Section 363 of the U.S. Bankruptcy Code, for cash consideration of $45.0 million. Under the provisions of the asset purchase agreement, the Company assumed $60.0 million in subordinated notes issued to First Place Capital Trust, First Place Capital Trust II, and First Place Capital III, of which $45.0 million was immediately retired. Following the acquisition, the Company contributed $179.0 million of additional capital in order to recapitalize First Place Bank with commitments to contribute additional capital if needed. The Company incurred $171 thousand and $7.9 million of acquisition related expenses during the three and nine months ended September 30, 2013 primarily related to the acquisition of First Place Bank included within “Bank acquisition and due diligence fees” in the Consolidated Statements of Income. First Place Bank was consolidated with and into Talmer Bank and Trust on February 10, 2014. | ||||||||
The following table presents a summary of the assets and liabilities purchased in the First Place Bank acquisition recorded at fair value. | ||||||||
(Dollars in thousands) | ||||||||
Consideration paid: | ||||||||
Cash | $ | 45,000 | ||||||
Fair Value of identifiable assets acquired: | ||||||||
Cash and cash equivalents | 439,805 | |||||||
Investment securities | 139,764 | |||||||
Federal Home Loan Bank stock | 12,993 | |||||||
Loans held-for-sale | 213,946 | |||||||
Loans | 1,530,376 | |||||||
Premises and equipment | 22,168 | |||||||
Loan servicing rights | 41,967 | |||||||
Company-owned life insurance | 38,172 | |||||||
Other real estate owned | 18,448 | |||||||
Core deposit intangible | 9,816 | |||||||
Other assets | 128,278 | |||||||
Total identifiable assets acquired | 2,595,733 | |||||||
Fair value of liabilities assumed: | ||||||||
Deposits | 2,121,258 | |||||||
Short-term borrowings | 21,892 | |||||||
Long-term debt | 312,956 | |||||||
Other liabilities | 22,925 | |||||||
Total liabilities assumed | 2,479,031 | |||||||
Fair value of net identifiable assets acquired | 116,702 | |||||||
Bargain purchase gain resulting from acquisition | $ | 71,702 | ||||||
The First Place Bank acquisition resulted in a pre-tax bargain purchase gain of $71.7 million as the estimated fair value of assets acquired exceeded the estimated fair value of liabilities assumed and consideration paid. The gain was included within “Bargain purchase gain” in the Consolidated Statements of Income. | ||||||||
The core deposit intangible is being amortized on an accelerated basis over the estimated life, currently expected to be 10 years. | ||||||||
Loans acquired in the First Place Bank acquisition were initially recorded at fair value with no separate allowance for loan losses. | ||||||||
Information regarding acquired loans accounted for under ASC 310-30 as well as those excluded from ASC 310-30 accounting at acquisition date is as follows: | ||||||||
(Dollars in thousands) | ||||||||
Accounted for under ASC 310-30: | ||||||||
Contractual cash flows | $ | 738,639 | ||||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 150,008 | |||||||
Expected cash flows | 588,631 | |||||||
Interest component of expected cash flows (accretable yield) | 158,221 | |||||||
Fair value at acquisition | $ | 430,410 | ||||||
Excluded from ASC 310-30 accounting: | ||||||||
Unpaid principal balance | $ | 1,094,223 | ||||||
Fair value premium | 5,743 | |||||||
Fair value at acquisition | 1,099,966 | |||||||
Total fair value at acquisition | $ | 1,530,376 | ||||||
First Place Bank’s results of operations have been included in the Company’s financial results since the January 1, 2013 acquisition date. |
FAIR_VALUE
FAIR VALUE | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||
3. FAIR VALUE | |||||||||||||||||
The fair value framework as detailed by FASB ASC Topic 820, “Fair Value Measurement” requires the categorization of assets and liabilities into a three-level hierarchy based on the markets in which the financial instruments are traded and the reliability of the assumptions used to determine fair value. A brief description of each level follows. | |||||||||||||||||
Level 1 — Valuation is based upon quoted prices (unadjusted) for identical instruments in active markets. | |||||||||||||||||
Level 2 — Valuation is based upon quoted prices for identical or similar instruments in markets that are not active; quoted prices for similar instruments in active markets; or model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. | |||||||||||||||||
Level 3 — Valuation is measured through utilization of model-based techniques that rely on at least one significant assumption not observable in the market. Any necessary unobservable assumptions used reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques. | |||||||||||||||||
Fair value estimates are based on existing financial instruments and, in accordance with GAAP, do not attempt to estimate the value of anticipated future business or the value of assets and liabilities that are not considered financial instruments. In addition, tax ramifications related to the recognition of unrealized gains and losses, such as those within the investment securities portfolio, can have a significant effect on estimated fair values and, in accordance with GAAP, have not been considered in the estimates. For these reasons, the aggregate fair value should not be considered an indication of the value of the Company. | |||||||||||||||||
Following is a description of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value, as well as a description of the methods and any significant assumptions used to estimate fair value disclosures for financial assets and liabilities not recorded at fair value in their entirety on a recurring basis. For financial assets and liabilities recorded at fair value, the description includes the level of the fair value hierarchy in which the assets for liabilities are classified. Transfers of asset or liabilities between levels of the fair value hierarchy are recognized at the beginning of the reporting period, when applicable. | |||||||||||||||||
Cash and cash equivalents: Due to the short-term nature, the carrying amount of these assets approximates the estimated fair value. The Company classifies cash and due from banks as Level 1 and interest-bearing deposits with other banks and federal funds and other short-term investments as Level 2. | |||||||||||||||||
Securities available-for-sale: Investment securities classified as available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available or the market is deemed to be inactive at the measurement date, fair values are measured utilizing independent valuation techniques of identical or similar investment securities. Third-party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities. Management reviews the methodologies and assumptions used by the third-party pricing services and evaluates the values provided, principally by comparison with other available market quotes for similar instruments and/or analysis based on internal models using available third-party market data. Level 1 securities include equity securities traded on an active exchange, such as the New York Stock Exchange. Level 2 securities include obligations issued by U.S. government-sponsored enterprises, state and municipal obligations, mortgage-backed securities issued by both U.S. government-sponsored enterprises and non-agency enterprises securities, corporate debt securities, Small Business Administration Pools and privately issued commercial mortgage-backed securities that have active markets at the measurement date. The fair value of Level 2 securities was determined using quoted prices of securities with similar characteristics or pricing models based on observable market data inputs, primarily interest rates, spreads and prepayment information. | |||||||||||||||||
Securities classified as Level 3, including an obligation of a political subdivision and a trust preferred security (included within “Corporate debt securities”) as of September 30, 2014, represent securities in less liquid markets requiring significant management assumptions when determining fair value. The fair values of these investment securities represent less than one percent of the total available-for-sale securities. The Troubled Asset Relief Program preferred securities and the trust preferred security fair values are compiled by a third-party vendor through consideration of recent trades and/or auctions of comparable securities, where applicable and are presented without adjustment. Comparable securities consider credit, structure, tenor, trade flows and cash flow characteristics. Due to the limited sales of these types of securities, significant unobservable assumptions are included to determine comparable securities to be included in the analysis. The fair value of the political subdivision obligation is determined using a discounted cash flow model prepared internally which includes a significant unobservable input related to the credit assumption of the security. Since the purchase of this security, no credit related concerns have come to the Company’s attention, therefore no adjustment for credit loss assumptions were made. | |||||||||||||||||
Federal Home Loan Bank (“FHLB”) Stock: Restricted equity securities are not readily marketable and are recorded at cost and evaluated for impairment based on the ultimate recoverability of initial cost. No significant observable market data is available for these instruments. The Company considers the profitability and asset quality of the issuer, dividend payment history and recent redemption experience, when determining the ultimate recoverability of cost. The Company believes its investments in FHLB stock are ultimately recoverable at cost. | |||||||||||||||||
Loans held for sale: Loans held for sale are carried at fair value based on the Company’s election of the fair value option. These loans currently consist of one-to-four family residential real estate loans originated for sale to qualified third parties. The fair value is determined based on quoted market rates and other market conditions considered relevant. The Company classifies loans held for sale as recurring Level 2. | |||||||||||||||||
Loans measured at fair value: During the normal course of business, loans originated with the initial intention to sell but are not ultimately sold, are transferred from held for sale to our portfolio of loans held for investment at fair value as the Company adopted the fair value option at origination. The fair value of these loans is estimated using discounted cash flows, taking into consideration current market interest rates, loan repricing characteristics and expected loan prepayment speeds, while also taking into consideration other significant unobservable inputs such as the payment history and credit quality characteristic of each individual loan and an illiquidity discount reflecting the relative illiquidity of the market. Due to the adjustments made relating to unobservable inputs, the Company classifies the loans transferred from loans held for sale as recurring Level 3. | |||||||||||||||||
Loans: The Company does not record loans at fair value on a recurring basis other than those discussed in “Loans measured at fair value” above. However, periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements. Loans, outside the scope of ASC 310-30, are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans, which include all nonaccrual loans and troubled debt restructurings, are disclosed as nonrecurring fair value measurements when an allowance is established based on the fair value of the underlying collateral. Appraisals for collateral-dependent impaired loans are prepared by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties). These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. The comparable sales approach evaluates the sales price of similar properties in the same market area. This approach is inherently subjective due to the wide range of comparable sale dates. The income approach considers net operating income generated by the property and the investor’s required return. This approach utilizes various inputs including lease rates and cap rates which are subject to judgment. Adjustments are routinely made in the appraisal process by the appraisers to account for differences between the comparable sales and income data available. These adjustments generally range from 0% to 40% depending on the property type, as well as various sales and property characteristics including but not limited to: date of sale, size and condition of facility, quality of construction and proximity to the subject property. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics to determine if additional downward adjustments should be made. Property values are typically adjusted when management is aware of circumstances, economic changes or other conditions, since the date of the appraisal that would impact the expected selling price. Such adjustments are usually significant and result in a nonrecurring Level 3 classification. | |||||||||||||||||
Estimated fair values for loans accounted for under ASC 310-30 are based on a discounted cash flow methodology that considers factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Cash flows expected to be collected on these loans are estimated based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. The Company classifies the estimated fair value of loans accounted for under ASC 310-30 as Level 3. | |||||||||||||||||
For loans excluded from ASC 310-30 accounting that are not individually evaluated for impairment, fair value is estimated using a discounted cash flow model. The cash flows take into consideration current portfolio interest rates and repricing characteristics as well as assumptions relating to prepayment speeds. The discount rates take into consideration the current market interest rate environment, a credit risk component based on the credit characteristics of each loan portfolio, and a liquidity premium reflecting the liquidity or illiquidity of the market. The Company classifies the estimated fair value of non-collateral dependent loans excluded from ASC 310-30 accounting as Level 3. | |||||||||||||||||
Premises and equipment: Premises and equipment are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. Impaired premises and equipment at September 30, 2014 and December 31, 2013 were recorded at fair value based on a recent appraisal through a valuation allowance. The Company classifies impaired premises and equipment as nonrecurring Level 2. | |||||||||||||||||
FDIC indemnification asset: The fair value of the FDIC indemnification asset is estimated using projected cash flows related to the loss sharing agreements based on the expected reimbursements for losses and the applicable loss sharing percentages. The Company re-estimates the expected indemnification asset cash flows in conjunction with the quarterly re-estimation of cash flows on covered loans accounted for under ASC 310-30. The expected cash flows are discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be subject to significant change. The estimates used in calculating the value of the FDIC indemnification asset are reflective of the estimates utilized to determine the estimated fair value of loans accounted for under ASC 310-30. The Company classifies the estimated fair value of the FDIC indemnification asset as Level 3. | |||||||||||||||||
Other real estate owned: Other real estate owned represents property acquired by the Company as part of an acquisition, through the loan foreclosure or repossession process, or any other resolution activity that results in partial or total satisfaction of problem covered loans, or by closing of branches or operating facilities. Properties are initially recorded at fair value, less estimated costs to sell, establishing a new cost basis. Subsequently, the assets are valued at the lower of cost or fair value, less estimated costs to sell, based on periodic valuations performed. Fair value is based upon independent market prices, appraised value or management’s estimate of the value, using a single valuation approach or a combination of approaches including comparable sales and the income approach. The comparable sales approach evaluates the sales price of similar properties in the same market area. This approach is inherently subjective due to the wide range of comparable sale dates. The income approach considers net operating income generated by the property and the investor’s required return. This approach utilizes various inputs including lease rates and cap rates which are subject to judgment. Adjustments are routinely made in the appraisal process by the appraisers to account for differences between the comparable sales and income data available. These adjustments generally range from 0% to 40% depending on the property type, as well as various sales and property characteristics including but not limited to: date of sale, size and condition of facility, quality of construction and proximity to the subject property. Adjustments are typically significant and result in a Level 3 classification. | |||||||||||||||||
Loan servicing rights: Loan servicing rights are accounted for under the fair value measurement method. A third party valuation model is used to determine the fair value at the end of each reporting period utilizing a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and a discount rate determined by management. Changes in fair value of loan servicing rights are recorded in “Mortgage banking and other loan fees”. Because of the nature of the valuation inputs, the company classifies loan servicing rights as Level 3. Refer to Note 10, “Loan Servicing Rights”, for assumptions included in the valuation of loan servicing rights. | |||||||||||||||||
FDIC receivable: The FDIC receivable represents claims submitted to the Federal Deposit Insurance Corporation (“FDIC”) for reimbursement for which the Company expects to receive payment within 90 days. Due to their short term nature, the carrying amount of these instruments approximates the estimated fair value. The Company classifies the estimated fair value of FDIC receivable as Level 2. | |||||||||||||||||
Company-owned life insurance and deferred compensation plan liabilities: The Company holds life insurance policies on certain officers, both for investment purposes and for the Company’s deferred compensation plan. The carrying value of these policies approximates fair value as it is based on the cash surrender value adjusted for other charges or amounts due that are probable at settlement. As such, the Company classifies the estimated fair value of Company-owned life insurance as Level 2. Deferred compensation plan liabilities represent the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets. Deferred compensation plan liabilities are recorded with “other liabilities” and are classified by the Company as Level 2. | |||||||||||||||||
Derivative instruments: The Company enters into interest rate lock commitments with prospective borrowers to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors, which are carried at fair value on a recurring basis. The fair value of these commitments is based on the fair value of related mortgage loans determined using observable market data. Interest rate lock commitments are adjusted for expectations of exercise and funding. This adjustment is not considered to be a material input. The Company classifies derivatives as recurring Level 2. | |||||||||||||||||
Derivative instruments held or issued for customer-initiated activities are traded in over-the counter markets where quoted market prices are not readily available. Fair value for over-the-counter derivative instruments is measured on a recurring basis using third party models that use primarily market observable inputs, such as yield curves and option volatilities. The fair value for these derivatives may include a credit valuation adjustment that is determined by applying a credit spread for the counterparty or the Company, as appropriate, to the total expected exposure of the derivative after considering collateral and other master netting arrangements. These adjustments, which are considered Level 3 inputs, are based on estimates of current credit spreads to evaluate the likelihood of default. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and at September 30, 2014 it was determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the company classifies its over-the-counter derivative valuations in Level 2 of the fair value hierarchy. | |||||||||||||||||
Accrued interest receivable and payable: Due to their short term nature, the carrying amount of these instruments approximates the estimated fair value; therefore, the Company classifies the estimated fair value of accrued interest receivable and payable as Level 2. | |||||||||||||||||
Deposits: The estimated fair value of demand deposits (e.g., noninterest and interest-bearing demand, savings, other brokered funds and certain types of money market accounts) is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are based on the discounted value of contractual cash flows at current interest rates. The estimated fair value of deposits does not take into account the value of the Company’s long-term relationships with depositors, commonly known as core deposit intangibles, which are not considered financial instruments. The Company classifies the estimated fair value of deposits as Level 2. | |||||||||||||||||
Clawback liability: The CF Bancorp, First Banking Center and Peoples State Bank loss sharing agreements contain a provision where if losses do not exceed a calculated threshold, the Company is obligated to compensate the FDIC. The carrying amount of these instruments approximates the estimated fair value. The estimated fair value requires management’s assumption of what estimated losses will be, which is a significant component. As such, the Company classifies the estimated fair value of the FDIC clawback liability as Level 3. | |||||||||||||||||
Short-term borrowings: Short-term borrowings represent federal funds purchased, a senior unsecured line of credit and certain short-term FHLB advances. Due to their short term nature, the carrying amount of these instruments approximates the estimated fair value. The Company classifies the estimated fair value of short-term borrowings as Level 2. | |||||||||||||||||
Long-term debt: Long-term debt includes securities sold under agreements to repurchase, FHLB advances and subordinated notes related to trust preferred securities. The estimated fair value is based on current rates for similar financing or market quotes to settle those liabilities. The Company classifies the estimated fair value of long-term debt as Level 2. | |||||||||||||||||
FDIC warrants payable: FDIC warrants payable represent stock warrants that were issued to the FDIC in connection with the 2010 FDIC-assisted acquisition of CF Bancorp. These warrants are recorded at net present value based on management estimates used in a discounted pricing model. The inputs into the pricing model include management’s assumption of an annualized growth rate. The carrying amount of these instruments approximates the estimated fair value. The Company classifies the estimated fair value of FDIC warrants payable as Level 3. | |||||||||||||||||
The following tables present the recorded amount of assets and liabilities measured at fair value, including financial assets and liabilities for which the Company has elected the fair value option, on a recurring basis: | |||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
U.S. government sponsored agency obligations | $ | 105,690 | $ | — | $ | 105,690 | $ | — | |||||||||
Obligations of state and political subdivisions: | |||||||||||||||||
Taxable | 397 | — | — | 397 | |||||||||||||
Tax-exempt | 220,530 | — | 220,530 | — | |||||||||||||
Small Business Administration (“SBA”) Pools | 35,332 | — | 35,332 | — | |||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 299,605 | — | 299,605 | — | |||||||||||||
Privately issued | 9,959 | — | 9,959 | — | |||||||||||||
Privately issued commercial mortgage-backed securities | 5,135 | — | 5,135 | — | |||||||||||||
Corporate debt securities | 57,841 | — | 57,406 | 435 | |||||||||||||
Total securities available-for-sale | 734,489 | — | 733,657 | 832 | |||||||||||||
Loans measured at fair value: | |||||||||||||||||
Residential real estate | 17,881 | — | — | 17,881 | |||||||||||||
Loans held for sale | 122,599 | — | 122,599 | — | |||||||||||||
Loan servicing rights | 74,380 | — | — | 74,380 | |||||||||||||
Derivative assets | 1,798 | — | 1,798 | — | |||||||||||||
Total assets at fair value | $ | 951,147 | $ | — | $ | 858,054 | $ | 93,093 | |||||||||
Derivative liabilities | 361 | — | 361 | — | |||||||||||||
Total liabilities at fair value | $ | 361 | $ | — | $ | 361 | $ | — | |||||||||
December 31, 2013 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
U.S. government sponsored agency obligations | $ | 98,237 | $ | — | $ | 98,237 | $ | — | |||||||||
Obligations of state and political subdivisions: | |||||||||||||||||
Taxable | 396 | — | — | 396 | |||||||||||||
Tax-exempt | 182,000 | — | 182,000 | — | |||||||||||||
Small Business Administration (“SBA”) Pools | 42,426 | — | 42,426 | — | |||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 218,922 | — | 218,922 | — | |||||||||||||
Privately issued | 4,446 | — | 4,446 | — | |||||||||||||
Privately issued commercial mortgage-backed securities | 5,147 | — | 5,147 | — | |||||||||||||
Corporate debt securities | 68,020 | — | 67,615 | 405 | |||||||||||||
Equity securities | 489 | 489 | — | — | |||||||||||||
Total securities available-for-sale | 620,083 | 489 | 618,793 | 801 | |||||||||||||
Loans measured at fair value: | |||||||||||||||||
Residential real estate | 16,334 | — | — | 16,334 | |||||||||||||
Real estate construction | 1,374 | — | — | 1,374 | |||||||||||||
Loans held for sale | 85,252 | — | 85,252 | — | |||||||||||||
Loans servicing rights | 78,603 | — | — | 78,603 | |||||||||||||
Derivative assets | 2,630 | — | 2,630 | — | |||||||||||||
Total assets at fair value | $ | 804,276 | $ | 489 | $ | 706,675 | $ | 97,112 | |||||||||
There were no transfers between levels within the fair value hierarchy during the three and nine months ended September 30, 2014 or 2013. | |||||||||||||||||
The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis. | |||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||
Securities available-for-sale | |||||||||||||||||
(Dollars in thousands) | Taxable obligations of | Corporate Debt | Loans held for | Loan servicing | |||||||||||||
state and political | Securities | investment | rights | ||||||||||||||
subdivisions | |||||||||||||||||
Balance, beginning of period | $ | 397 | $ | 433 | $ | 18,521 | $ | 74,104 | |||||||||
Transfers from loans held for sale | — | — | 280 | — | |||||||||||||
Gains (losses): | |||||||||||||||||
Recorded in earnings (realized): | |||||||||||||||||
Recorded in “Interest on investments” | — | 1 | — | — | |||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | (93 | ) | (2,022 | ) | |||||||||||
Recorded in OCI (pre-tax) | — | 1 | — | — | |||||||||||||
New originations | — | — | — | 2,298 | |||||||||||||
Repayments | — | — | (827 | ) | — | ||||||||||||
Balance, end of period | $ | 397 | $ | 435 | $ | 17,881 | $ | 74,380 | |||||||||
Nine months ended September 30, 2014 | |||||||||||||||||
Securities available-for-sale | |||||||||||||||||
(Dollars in thousands) | Taxable obligations of | Corporate Debt | Loans held for | Loan servicing | |||||||||||||
state and political | Securities | investment | rights | ||||||||||||||
subdivisions | |||||||||||||||||
Balance, beginning of period | $ | 396 | $ | 405 | $ | 17,708 | $ | 78,603 | |||||||||
Additions due to acquisition | — | — | — | 767 | |||||||||||||
Transfers from loans held for sale | — | — | 1,058 | — | |||||||||||||
Gains (losses): | |||||||||||||||||
Recorded in earnings (realized): | |||||||||||||||||
Recorded in “Interest on investments” | 1 | 3 | — | — | |||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | 320 | (11,036 | ) | ||||||||||||
Recorded in OCI (pre-tax) | — | 27 | — | — | |||||||||||||
New originations | — | — | — | 6,046 | |||||||||||||
Repayments | — | — | (1,333 | ) | — | ||||||||||||
Draws on previously issued lines of credits | — | — | 128 | — | |||||||||||||
Balance, end of period | $ | 397 | $ | 435 | $ | 17,881 | $ | 74,380 | |||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Securities available-for-sale | |||||||||||||||||
(Dollars in thousands) | Taxable obligations of | Corporate Debt | Loan servicing | ||||||||||||||
state and political | Securities | rights | |||||||||||||||
subdivisions | |||||||||||||||||
Balance, beginning of period | $ | 396 | $ | 14,006 | $ | 65,187 | |||||||||||
Gains (losses): | |||||||||||||||||
Recorded in earnings (realized): | |||||||||||||||||
Recorded in “Interest on investments” | — | 47 | |||||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | (69 | ) | |||||||||||||
Recorded in OCI (pre-tax) | — | (44 | ) | — | |||||||||||||
New originations | — | — | 6,633 | ||||||||||||||
Sales/calls | — | (835 | ) | — | |||||||||||||
Balance, end of period | $ | 396 | $ | 13,174 | $ | 71,751 | |||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Securities available-for-sale | |||||||||||||||||
(Dollars in thousands) | Taxable obligations of | Corporate debt | Loan servicing | ||||||||||||||
state and political | securities | rights | |||||||||||||||
subdivisions | |||||||||||||||||
Balance, beginning of period | $ | 396 | $ | 15,250 | $ | — | |||||||||||
Transfers based on new accounting policy election | — | — | 5,657 | -1 | |||||||||||||
Additions due to acquisition | — | — | 41,967 | ||||||||||||||
Gains (losses): | |||||||||||||||||
Recorded in earnings (realized): | |||||||||||||||||
Recorded in “Net gain (loss) on sale of securities” | — | 69 | — | ||||||||||||||
Recorded in “Interest on investments” | — | 47 | — | ||||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | 3,997 | ||||||||||||||
Recorded in OCI (pre-tax) | — | 189 | — | ||||||||||||||
Purchases | — | 440 | — | ||||||||||||||
New originations | — | — | 20,130 | ||||||||||||||
Sales/calls | — | (2,821 | ) | — | |||||||||||||
Balance, end of period | $ | 396 | $ | 13,174 | $ | 71,751 | |||||||||||
(1) The balance transferred includes $31 thousand of cumulative adjustment related to the change in accounting policy referenced in Note 1 to our audited financial statements included in our 2013 Annual Report. | |||||||||||||||||
The aggregate fair value, contractual balance (including accrued interest), and gain or loss position for loans held for investment measured and recorded at fair value was as follows: | |||||||||||||||||
(Dollars in thousands) | September 30, 2014 | December 31, 2013 | |||||||||||||||
Aggregate fair value | $ | 17,881 | $ | 17,708 | |||||||||||||
Contractual balance | 17,816 | 18,022 | |||||||||||||||
Fair market value gain (loss) | 65 | (314 | ) | ||||||||||||||
There were no gains (losses) included in the fair value above that were associated with instrument specific credit risk. The aggregate fair value and contractual principal balance of loans held for investment measured and recorded at fair value that were 90 days or more past due as of September 30, 2014 was $155 thousand and $191 thousand, respectively. Of the aggregate fair value of loans that were 90 days or more past due as of September 30, 2014, $155 thousand were on nonaccrual status. The aggregate fair value and contractual principal balance of loans held for investment measured and recorded at fair value that were 90 days or more past due as of December 31, 2013 was $293 thousand and $301 thousand, respectively. Of the aggregate fair value of loans that were 90 days or more past due as of December 31, 2013, $252 thousand were on nonaccrual status. | |||||||||||||||||
Interest income is recorded based on the contractual terms of the loans in accordance with the Company’s policy on loans held for investment and is recorded in “Interest and fees on loans” in the Consolidated Statements of Income. For the three and nine months ended September 30, 2014, there was $164 thousand and $423 thousand, respectively, of interest income earned on loans transferred from loans held for sale to loans held for investment. | |||||||||||||||||
The Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans in accordance with the Company policy on loans held for investment in “Interest and fees on loans” in the Consolidated Statements of Income. None of these loans are 90 days past due or on nonaccrual status as of September 30, 2014 or December 31, 2013. | |||||||||||||||||
The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: | |||||||||||||||||
(Dollars in thousands) | September 30, 2014 | December 31, 2013 | |||||||||||||||
Aggregate fair value | $ | 122,599 | $ | 85,252 | |||||||||||||
Contractual balance | 117,015 | 82,567 | |||||||||||||||
Unrealized gain | 5,584 | 2,685 | |||||||||||||||
The total amount of gains (losses) from changes in fair value included in “Net gain on sales of loans” in the Consolidated Statements of Income were as follows: | |||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Change in fair value | $ | (1,935 | ) | $ | 12,652 | $ | 2,899 | $ | 944 | ||||||||
Certain financial assets and liabilities are measured at fair value on a nonrecurring basis. These include assets that are recorded at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. | |||||||||||||||||
The following table presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis: | |||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable Inputs | |||||||||||||||
for Identical | Observable | (Level 3) | |||||||||||||||
Assets | Inputs | ||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
September 30, 2014 | |||||||||||||||||
Impaired loans:(1) | |||||||||||||||||
Uncovered | |||||||||||||||||
Residential real estate | $ | 2,773 | $ | — | $ | — | $ | 2,773 | |||||||||
Commercial real estate | 3,220 | — | — | 3,220 | |||||||||||||
Commercial and industrial | 7,423 | — | — | 7,423 | |||||||||||||
Consumer | 15 | — | — | 15 | |||||||||||||
Total uncovered impaired loans | 13,431 | — | — | 13,431 | |||||||||||||
Covered | |||||||||||||||||
Residential real estate | 26 | — | — | 26 | |||||||||||||
Commercial and industrial | 867 | — | — | 867 | |||||||||||||
Total covered impaired loans | 893 | — | — | 893 | |||||||||||||
Total impaired loans | 14,324 | — | — | 14,324 | |||||||||||||
Other real estate owned (uncovered)(2) | 6,793 | — | — | 6,793 | |||||||||||||
Other real estate owned (covered)(3) | 2,062 | — | — | 2,062 | |||||||||||||
Premises and equipment(4) | 675 | — | 675 | — | |||||||||||||
Total | $ | 23,854 | $ | — | $ | 675 | $ | 23,179 | |||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans:(1) | |||||||||||||||||
Uncovered | |||||||||||||||||
Residential real estate | $ | 1,569 | $ | — | $ | — | $ | 1,569 | |||||||||
Commercial and industrial | 762 | — | — | 762 | |||||||||||||
Total uncovered impaired loans | 2,331 | — | — | 2,331 | |||||||||||||
Covered | |||||||||||||||||
Commercial real estate | 644 | — | — | 644 | |||||||||||||
Total covered impaired loans | 644 | — | — | 644 | |||||||||||||
Total impaired loans | 2,975 | — | — | 2,975 | |||||||||||||
Other real estate owned (uncovered) (2) | 2,216 | — | — | 2,216 | |||||||||||||
Other real estate owned (covered) (3) | 4,596 | — | — | 4,596 | |||||||||||||
Premises and equipment(4) | 105 | — | 105 | — | |||||||||||||
Total | $ | 9,892 | $ | — | $ | 105 | $ | 9,787 | |||||||||
(1) Specific reserves of $2.8 million and $1.4 million were provided to reduce the fair value of these loans at September 30, 2014 and December 31, 2013, respectively, based on the estimated fair value of the underlying collateral. In addition, charge-offs of $633 thousand and $36 thousand reduced the fair value of these loans in for the three months ended September 30, 2014 and 2013, respectively, and $1.3 million and $441 thousand for the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||
(2) The Company charged $1.4 million and $155 thousand through other non-interest expenses during the three months ended September 30, 2014 and 2013, respectively, and $2.9 million and $1.4 million during the nine months ended September 30, 2014 and 2013, respectively, to reduce the fair value of these properties. | |||||||||||||||||
(3) The Company charged $701 thousand and $2.0 million through other noninterest expenses during the three months ended September 30, 2014 and 2013, respectively, and $1.6 million and $4.3 million during the nine months ended September 30, 2014 and 2013, respectively, to reduce the fair value of these properties. These expenses were partially offset by FDIC loss sharing income recorded due to the associated loss share coverage. | |||||||||||||||||
(4) The Company charged $185 thousand and $109 thousand through other noninterest expenses during both the three and nine months ended September 30, 2014 and 2013, respectively, to reduce the value of premises and equipment deemed impaired during the period. | |||||||||||||||||
The Company typically holds the majority of its financial instruments until maturity and thus does not expect to realize many of the estimated fair value amounts disclosed. The disclosures also do not include estimated fair value amounts for items that are not defined as financial instruments, but which have significant value. These include such items as core deposit intangibles, the future earnings potential of significant customer relationships and the value of fee generating businesses. The Company believes the imprecision of an estimate could be significant. | |||||||||||||||||
The following tables present the carrying amount and estimated fair values of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company’s Consolidated Balance Sheets. | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
(Dollars in thousands) | Carrying Value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
September 30, 2014 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 298,666 | $ | 298,666 | $ | 91,214 | $ | 207,452 | $ | — | |||||||
Federal Home Loan Bank stock | 17,426 | N/A | |||||||||||||||
Net loans, excluding covered loans(1) | 3,601,441 | 3,684,609 | — | — | 3,684,609 | ||||||||||||
Net covered loans(2) | 378,024 | 453,652 | — | — | 453,652 | ||||||||||||
Accrued interest receivable | 12,876 | 12,876 | — | 12,876 | — | ||||||||||||
FDIC indemnification asset | 82,441 | 52,145 | — | — | 52,145 | ||||||||||||
FDIC receivable | 12,873 | 12,873 | — | 12,873 | — | ||||||||||||
Company-owned life insurance | 96,605 | 96,605 | — | 96,605 | — | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Savings and demand deposits | $ | 3,178,616 | $ | 3,178,616 | $ | — | $ | 3,178,616 | $ | — | |||||||
Time deposits(3) | 1,306,981 | 1,306,427 | — | 1,306,427 | — | ||||||||||||
Total deposits | 4,485,597 | 4,485,043 | — | 4,485,043 | |||||||||||||
FDIC clawback liability | 25,723 | 25,723 | — | — | 25,723 | ||||||||||||
Short term borrowings | 150,573 | 150,573 | — | 150,573 | — | ||||||||||||
Long-term debt | 285,009 | 279,011 | — | 279,011 | — | ||||||||||||
FDIC warrants payable | 4,563 | 4,563 | — | — | 4,563 | ||||||||||||
Accrued interest payable | 694 | 694 | — | 694 | — | ||||||||||||
Deferred compensation plan liabilities | 218 | 218 | — | 218 | — | ||||||||||||
(1) Included $13.4 million of impaired loans recorded at fair value on a nonrecurring basis and $17.9 million of loans recorded at fair value on a recurring basis. | |||||||||||||||||
(2) Included $893 thousand of impaired loans recorded at fair value on a nonrecurring basis. | |||||||||||||||||
(3) Includes $50.0 million of other brokered funds. | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
(Dollars in thousands) | Carrying Value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2013 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 375,356 | $ | 375,356 | $ | 97,167 | $ | 278,189 | $ | — | |||||||
Federal Home Loan Bank stock | 16,303 | N/A | |||||||||||||||
Net loans, excluding covered loans(1) | 2,456,170 | 2,574,109 | — | — | 2,574,109 | ||||||||||||
Net covered loans(2) | 489,687 | 534,857 | — | — | 534,857 | ||||||||||||
Accrued interest receivable | 7,968 | 7,968 | — | 7,968 | — | ||||||||||||
FDIC indemnification asset | 131,861 | 84,010 | — | — | 84,010 | ||||||||||||
FDIC receivable | 7,783 | 7,783 | — | 7,783 | — | ||||||||||||
Company-owned life insurance | 39,500 | 39,500 | — | 39,500 | — | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Savings and demand deposits | $ | 2,673,524 | $ | 2,673,524 | $ | — | $ | 2,673,524 | $ | — | |||||||
Time deposits | 927,313 | 928,128 | — | 928,128 | — | ||||||||||||
Total deposits | 3,600,837 | 3,601,652 | — | 3,601,652 | — | ||||||||||||
FDIC clawback liability | 24,887 | 24,887 | — | — | 24,887 | ||||||||||||
Short term borrowings | 71,876 | 71,876 | — | 71,876 | — | ||||||||||||
Long-term debt | 199,037 | 190,420 | — | 190,420 | — | ||||||||||||
FDIC warrants payable | 4,118 | 4,118 | — | — | 4,118 | ||||||||||||
Accrued interest payable | 626 | 626 | — | 626 | — | ||||||||||||
(1) Included $2.3 million of impaired loans recorded at fair value on a nonrecurring basis and $17.7 million of loans recorded at fair value on a recurring basis. | |||||||||||||||||
(2) Included $644 thousand of impaired loans recorded at fair value on a nonrecurring basis. |
SECURITIES
SECURITIES | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
4. SECURITIES | ||||||||||||||||||||
A summary of the Company’s securities available-for-sale is as follows: | ||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair Value | ||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||
Gains | Losses | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 105,806 | $ | 427 | $ | (543 | ) | $ | 105,690 | |||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||
Taxable | 397 | — | — | 397 | ||||||||||||||||
Tax-exempt | 217,671 | 3,724 | (865 | ) | 220,530 | |||||||||||||||
SBA Pools | 35,346 | 162 | (176 | ) | 35,332 | |||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 299,591 | 1,704 | (1,690 | ) | 299,605 | |||||||||||||||
Privately issued | 9,984 | 5 | (30 | ) | 9,959 | |||||||||||||||
Privately issued commercial mortgage-backed securities | 5,141 | — | (6 | ) | 5,135 | |||||||||||||||
Corporate debt securities | 57,342 | 706 | (207 | ) | 57,841 | |||||||||||||||
Total securities available-for-sale | $ | 731,278 | $ | 6,728 | $ | (3,517 | ) | $ | 734,489 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 102,597 | $ | — | $ | (4,360 | ) | $ | 98,237 | |||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||
Taxable | 396 | — | — | 396 | ||||||||||||||||
Tax-exempt | 184,351 | 2,102 | (4,453 | ) | 182,000 | |||||||||||||||
SBA Pools | 42,956 | 162 | (692 | ) | 42,426 | |||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 223,518 | 729 | (5,325 | ) | 218,922 | |||||||||||||||
Privately issued | 4,453 | 22 | (29 | ) | 4,446 | |||||||||||||||
Privately issued commercial mortgage-backed securities | 5,181 | — | (34 | ) | 5,147 | |||||||||||||||
Corporate debt securities | 68,433 | 237 | (650 | ) | 68,020 | |||||||||||||||
Equity securities | 500 | — | (11 | ) | 489 | |||||||||||||||
Total securities available-for-sale | $ | 632,385 | $ | 3,252 | $ | (15,554 | ) | $ | 620,083 | |||||||||||
Proceeds from sales of securities and the associated gains and losses recorded in earnings are listed below: | ||||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Proceeds | $ | 28,285 | $ | — | $ | 82,496 | $ | 7,500 | ||||||||||||
Gross gains | 248 | — | 248 | 124 | ||||||||||||||||
Gross losses | (4 | ) | — | (2,314 | ) | (24 | ) | |||||||||||||
The amortized cost and fair value of debt securities by contractual maturity at September 30, 2014 are shown below. Contractual maturity is utilized for U.S. Government sponsored agency obligations, obligations of state and political subdivisions and corporate debt securities. Securities with multiple maturity dates are classified in the period of final maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | ||||||||||||||||||
Securities with contractual maturities: | ||||||||||||||||||||
Within one year | $ | 1,755 | $ | 1,755 | ||||||||||||||||
After one year through five years | 84,416 | 85,581 | ||||||||||||||||||
After five years through ten years | 169,417 | 170,787 | ||||||||||||||||||
After ten years | 475,690 | 476,366 | ||||||||||||||||||
Total securities available-for-sale | $ | 731,278 | $ | 734,489 | ||||||||||||||||
Securities with a carrying value of $423.1 million and $264.6 million were pledged at September 30, 2014 and December 31, 2013, respectively, to secure borrowings and deposits. | ||||||||||||||||||||
A summary of the Company’s investment securities available-for-sale in an unrealized loss position is as follows: | ||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized | Fair Value | Unrealized | Fair | Unrealized | ||||||||||||||
losses | losses | Value | losses | |||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 29,910 | $ | (83 | ) | $ | 49,531 | $ | (460 | ) | $ | 79,441 | $ | (543 | ) | |||||
Obligations of state and political subdivisions: | ||||||||||||||||||||
Tax-exempt | 35,291 | (209 | ) | 41,912 | (656 | ) | 77,203 | (865 | ) | |||||||||||
SBA Pools | 1,861 | (10 | ) | 18,191 | (166 | ) | 20,052 | (176 | ) | |||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 89,613 | (383 | ) | 62,954 | (1,307 | ) | 152,567 | (1,690 | ) | |||||||||||
Privately issued | 8,130 | (30 | ) | 56 | — | 8,186 | (30 | ) | ||||||||||||
Privately issued commercial mortgage-backed securities | 5,135 | (6 | ) | — | — | 5,135 | (6 | ) | ||||||||||||
Corporate debt securities | 12,879 | (115 | ) | 8,964 | (92 | ) | 21,843 | (207 | ) | |||||||||||
Total securities available-for-sale | $ | 182,819 | $ | (836 | ) | $ | 181,608 | $ | (2,681 | ) | $ | 364,427 | $ | (3,517 | ) | |||||
December 31, 2013 | ||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 98,237 | $ | (4,360 | ) | $ | — | $ | — | $ | 98,237 | $ | (4,360 | ) | ||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||
Tax-exempt | 102,585 | (4,159 | ) | 5,794 | (294 | ) | 108,379 | (4,453 | ) | |||||||||||
SBA Pools | 26,498 | (692 | ) | — | — | 26,498 | (692 | ) | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 155,028 | (4,952 | ) | 18,846 | (373 | ) | 173,874 | (5,325 | ) | |||||||||||
Privately issued | 557 | (1 | ) | 1,746 | (28 | ) | 2,303 | (29 | ) | |||||||||||
Privately issued commercial mortgage-backed securities | 5,147 | (34 | ) | — | — | 5,147 | (34 | ) | ||||||||||||
Corporate debt securities | 34,487 | (650 | ) | — | — | 34,487 | (650 | ) | ||||||||||||
Equity securities | 489 | (11 | ) | — | — | 489 | (11 | ) | ||||||||||||
Total securities available-for-sale | $ | 423,028 | $ | (14,859 | ) | $ | 26,386 | $ | (695 | ) | $ | 449,414 | $ | (15,554 | ) | |||||
As of September 30, 2014, the Company’s security portfolio consisted of 335 securities, 121 of which were in an unrealized loss position. The unrealized losses for these securities resulted primarily from changes in interest rates. The Company expects full collection of the carrying amount of these securities and does not intend to sell the securities in an unrealized loss position nor does it believe it will be required to sell securities in an unrealized loss position before the value is recovered. The Company does not consider these securities to be other-than-temporarily impaired at September 30, 2014. | ||||||||||||||||||||
The unrealized losses are spread across asset classes, primarily in those securities carrying fixed interest rates. At September 30, 2014, the combination of these security asset class holdings in an unrealized loss position had an estimated fair value of $364.4 million with gross unrealized losses of $3.5 million. Unrealized losses in these security holdings were mainly impacted by increases in benchmark U.S. Treasury rates and, to a lesser extent, widened liquidity spreads since their respective acquisition dates. |
LOANS
LOANS | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||
5. LOANS | |||||||||||||||||||||||||
Residential real estate loans represent loans to consumers for the purchase or refinance of a residence. These loans are generally financed over a 15- to 30-year term, and in most cases, are extended to borrowers to finance their primary residence with both fixed-rate and adjustable-rate terms. The majority of these loans originated by the Company conform to secondary market underwriting standards and are sold within a short timeframe to unaffiliated third parties. As such, the credit underwriting standards adhere to the underwriting standards and documentation requirements established by the respective investor or correspondent bank. Residential real estate loans also include home equity loans and lines of credit that are secured by a first or second lien on the borrower’s residence. Home equity lines of credit consist mainly of revolving lines of credit secured by residential real estate. Home equity lines of credit are generally governed by the same lending policies and subject to the same credit risk as described previously for residential real estate loans. | |||||||||||||||||||||||||
Commercial real estate loans consist of term loans secured by a mortgage lien on the real property such as apartment buildings, office and industrial buildings, retail shopping centers, and farmland. The credit underwriting for both owner-occupied and non-owner occupied commercial real estate loans includes detailed market analysis, historical and projected cash flow analysis, appropriate equity margins, assessment of lessees and lessors, type of real estate and other analysis. Risk of loss is managed by adherence to standard loan policies that establish certain levels of performance prior to the extension of a loan to the borrower. Geographic diversification, as well as diversification across industries, are other means by which the risk of loss is managed by the Company. | |||||||||||||||||||||||||
Commercial and industrial loans include financing for commercial purposes in various lines of business, including manufacturing, agricultural, service industry and professional service areas. The Company works with businesses to meet their short-term working capital needs while also providing long-term financing for their business plans. Credit risk is managed through standardized loan policies, established and authorized credit limits, centralized portfolio management and the diversification of market area and industries. The overall strength of the borrower is evaluated through the credit underwriting process and includes a variety of analytical activities including the review of historical and projected cash flows, historical financial performance, financial strength of the principals and guarantors, and collateral values, where applicable. Commercial and industrial loans are generally secured with the assets of the company and/or the personal guarantee of the business owners. | |||||||||||||||||||||||||
Real estate construction loans are term loans to individuals, companies or developers used for the construction of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. Generally, these loans are for construction projects that have been either presold, preleased, or have secured permanent financing, as well as loans to real estate companies with significant equity invested in the project. | |||||||||||||||||||||||||
Consumer loans include loans made to individuals not secured by real estate, including loans secured by automobiles or watercraft, and personal unsecured loans. Risk elements in the consumer loan portfolio are primarily focused on the borrower’s cash flow and credit history, key indicators of the ability to repay and borrower credit scores. A certain level of security is provided through liens on automobile or watercraft titles, where applicable. Economic conditions that affect consumers in the Company’s markets have a direct impact on the credit quality of these loans. Higher levels of unemployment, lower levels of income growth and weaker economic growth are factors that may adversely impact consumer loan credit quality. | |||||||||||||||||||||||||
Loans at September 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||
Covered loans | Uncovered loans | ||||||||||||||||||||||||
(Dollars in thousands) | Accounted | Excluded from | Total | Accounted | Excluded from | Total | Total | ||||||||||||||||||
for under | ASC 310-30 | covered | for under | ASC 310-30 | uncovered | ||||||||||||||||||||
ASC 310-30 | accounting | loans | ASC 310-30 | accounting | loans | ||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Residential real estate | $ | 90,763 | $ | 22,465 | $ | 113,228 | $ | 250,527 | $ | 1,180,412 | $ | 1,430,939 | $ | 1,544,167 | |||||||||||
Commercial real estate | 197,194 | 22,302 | 219,496 | 207,006 | 1,006,355 | 1,213,361 | 1,432,857 | ||||||||||||||||||
Commercial and industrial | 32,977 | 14,275 | 47,252 | 17,092 | 773,775 | 790,867 | 838,119 | ||||||||||||||||||
Real estate construction | 12,531 | 1,203 | 13,734 | 8,717 | 94,203 | 102,920 | 116,654 | ||||||||||||||||||
Consumer | 9,949 | 133 | 10,082 | 2,817 | 90,429 | 93,246 | 103,328 | ||||||||||||||||||
Total | $ | 343,414 | $ | 60,378 | $ | 403,792 | $ | 486,159 | $ | 3,145,174 | $ | 3,631,333 | $ | 4,035,125 | -1 | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Residential real estate | $ | 100,034 | $ | 23,300 | $ | 123,334 | $ | 253,528 | $ | 831,925 | $ | 1,085,453 | $ | 1,208,787 | |||||||||||
Commercial real estate | 262,769 | 36,632 | 299,401 | 98,299 | 657,540 | 755,839 | 1,055,240 | ||||||||||||||||||
Commercial and industrial | 51,407 | 27,030 | 78,437 | 5,985 | 440,659 | 446,644 | 525,081 | ||||||||||||||||||
Real estate construction | 15,268 | 1,950 | 17,218 | 1,970 | 174,256 | 176,226 | 193,444 | ||||||||||||||||||
Consumer | 11,508 | 170 | 11,678 | 2,907 | 6,847 | 9,754 | 21,432 | ||||||||||||||||||
Total | $ | 440,986 | $ | 89,082 | $ | 530,068 | $ | 362,689 | $ | 2,111,227 | $ | 2,473,916 | $ | 3,003,984 | -1 | ||||||||||
(1) Reported net of deferred fees and costs totaling $5.4 million and $9.8 million at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
Nonperforming Assets and Past Due Loans | |||||||||||||||||||||||||
Nonperforming assets consist of loans for which the accrual of interest has been discontinued, other real estate owned acquired through acquisitions and other real estate owned obtained through foreclosure. | |||||||||||||||||||||||||
Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans outside of those accounted for under ASC 310-30 are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income is discontinued when a loan is placed in nonaccrual status and any payments received reduce the carrying value of the loan. A loan may be placed back on accrual status if all contractual payments have been received and collection of future principal and interest payments are no longer doubtful. Loans accounted for under ASC 310-30 are classified as performing, even though they may be contractually past due, as any nonpayment of contractual principal or interest is considered in the quarterly re-estimation of expected cash flows and is included in the resulting recognition of current period provision for loan losses or future yield adjustments. | |||||||||||||||||||||||||
Information as to nonperforming assets was as follows: | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Uncovered nonperforming assets | |||||||||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||||||||
Residential real estate | $ | 15,733 | $ | 15,415 | |||||||||||||||||||||
Commercial real estate | 12,578 | 5,591 | |||||||||||||||||||||||
Commercial and industrial | 14,474 | 2,681 | |||||||||||||||||||||||
Real estate construction | 253 | 510 | |||||||||||||||||||||||
Consumer | 245 | 100 | |||||||||||||||||||||||
Total nonaccrual loans | 43,283 | 24,297 | |||||||||||||||||||||||
Other real estate owned (1) | 32,022 | 17,046 | |||||||||||||||||||||||
Total uncovered nonperforming assets | 75,305 | 41,343 | |||||||||||||||||||||||
Covered nonperforming assets | |||||||||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||||||||
Residential real estate | 1,737 | 988 | |||||||||||||||||||||||
Commercial real estate | 5,457 | 8,124 | |||||||||||||||||||||||
Commercial and industrial | 4,091 | 7,201 | |||||||||||||||||||||||
Real estate construction | 1,055 | 1,372 | |||||||||||||||||||||||
Consumer | 42 | 31 | |||||||||||||||||||||||
Total nonaccrual loans | 12,382 | 17,716 | |||||||||||||||||||||||
Other real estate owned | 11,766 | 11,571 | |||||||||||||||||||||||
Total covered nonperforming assets | 24,148 | 29,287 | |||||||||||||||||||||||
Total nonperforming assets | $ | 99,453 | $ | 70,630 | |||||||||||||||||||||
Uncovered loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | 282 | 539 | |||||||||||||||||||||||
Commercial real estate | 139 | — | |||||||||||||||||||||||
Real estate construction | 174 | — | |||||||||||||||||||||||
Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 | $ | 595 | $ | 539 | |||||||||||||||||||||
(1) Excludes closed branches and operating facilities. | |||||||||||||||||||||||||
Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | 30-59 days | 60-89 days | 90 days or more | Total past due | Current | Total loans | 90 days or more | ||||||||||||||||||
past due | past due | past due | past due and still | ||||||||||||||||||||||
accruing | |||||||||||||||||||||||||
Uncovered loans, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | $ | 3,808 | $ | 1,939 | $ | 8,400 | $ | 14,147 | $ | 1,166,265 | $ | 1,180,412 | $ | 282 | |||||||||||
Commercial real estate | 3,545 | 3,447 | 9,515 | 16,507 | 989,848 | 1,006,355 | 139 | ||||||||||||||||||
Commercial and industrial | 3,641 | 1,544 | 1,925 | 7,110 | 766,665 | 773,775 | — | ||||||||||||||||||
Real estate construction | 418 | — | 348 | 766 | 93,437 | 94,203 | 174 | ||||||||||||||||||
Consumer | 180 | 75 | 21 | 276 | 90,153 | 90,429 | — | ||||||||||||||||||
Total | $ | 11,592 | $ | 7,005 | $ | 20,209 | $ | 38,806 | $ | 3,106,368 | $ | 3,145,174 | $ | 595 | |||||||||||
Covered loans, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | $ | 484 | $ | 565 | $ | 978 | $ | 2,027 | $ | 20,438 | $ | 22,465 | $ | — | |||||||||||
Commercial real estate | — | 199 | 5,223 | 5,422 | 16,880 | 22,302 | — | ||||||||||||||||||
Commercial and industrial | 163 | 114 | 3,494 | 3,771 | 10,504 | 14,275 | — | ||||||||||||||||||
Real estate construction | 53 | 102 | 1,001 | 1,156 | 47 | 1,203 | — | ||||||||||||||||||
Consumer | 3 | — | 30 | 33 | 100 | 133 | — | ||||||||||||||||||
Total | $ | 703 | $ | 980 | $ | 10,726 | $ | 12,409 | $ | 47,969 | $ | 60,378 | $ | — | |||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | 30-59 days | 60-89 days | 90 days or more | Total past due | Current | Total loans | 90 days or more | ||||||||||||||||||
past due | past due | past due | past due and still | ||||||||||||||||||||||
accruing | |||||||||||||||||||||||||
Uncovered loans, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | $ | 11,244 | $ | 1,849 | $ | 6,641 | $ | 19,734 | $ | 812,191 | $ | 831,925 | $ | 539 | |||||||||||
Commercial real estate | 1,400 | 4,992 | 1,122 | 7,514 | 650,026 | 657,540 | — | ||||||||||||||||||
Commercial and industrial | 136 | 25 | 560 | 721 | 439,938 | 440,659 | — | ||||||||||||||||||
Real estate construction | 5,038 | 356 | 359 | 5,753 | 168,503 | 174,256 | — | ||||||||||||||||||
Consumer | 207 | 38 | 4 | 249 | 6,598 | 6,847 | — | ||||||||||||||||||
Total | $ | 18,025 | $ | 7,260 | $ | 8,686 | $ | 33,971 | $ | 2,077,256 | $ | 2,111,227 | $ | 539 | |||||||||||
Covered loans, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | $ | 827 | $ | 260 | $ | 224 | $ | 1,311 | $ | 21,989 | $ | 23,300 | $ | — | |||||||||||
Commercial real estate | 324 | 558 | 5,681 | 6,563 | 30,069 | 36,632 | — | ||||||||||||||||||
Commercial and industrial | 1,619 | 119 | 4,476 | 6,214 | 20,816 | 27,030 | — | ||||||||||||||||||
Real estate construction | — | — | 1,365 | 1,365 | 585 | 1,950 | — | ||||||||||||||||||
Consumer | 1 | 17 | 7 | 25 | 145 | 170 | — | ||||||||||||||||||
Total | $ | 2,771 | $ | 954 | $ | 11,753 | $ | 15,478 | $ | 73,604 | $ | 89,082 | $ | — | |||||||||||
Impaired Loans | |||||||||||||||||||||||||
Information as to total impaired loans (both individually and collectively evaluated for impairment) is as follows: | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Nonaccrual loans | $ | 43,283 | $ | 24,297 | |||||||||||||||||||||
Performing troubled debt restructurings: | |||||||||||||||||||||||||
Residential real estate | 1,802 | 328 | |||||||||||||||||||||||
Commercial real estate | 2,961 | 1,637 | |||||||||||||||||||||||
Commercial and industrial | 652 | 1,367 | |||||||||||||||||||||||
Real estate construction | 92 | 90 | |||||||||||||||||||||||
Consumer | 56 | 30 | |||||||||||||||||||||||
Total uncovered performing troubled debt restructurings | 5,563 | 3,452 | |||||||||||||||||||||||
Total uncovered impaired loans | $ | 48,846 | $ | 27,749 | |||||||||||||||||||||
Covered | |||||||||||||||||||||||||
Nonaccrual loans | $ | 12,382 | $ | 17,716 | |||||||||||||||||||||
Performing troubled debt restructurings: | |||||||||||||||||||||||||
Residential real estate | 2,860 | 2,691 | |||||||||||||||||||||||
Commercial real estate | 14,915 | 14,391 | |||||||||||||||||||||||
Commercial and industrial | 2,119 | 3,802 | |||||||||||||||||||||||
Real estate construction | 108 | 163 | |||||||||||||||||||||||
Total covered performing troubled debt restructurings | 20,002 | 21,047 | |||||||||||||||||||||||
Total covered impaired loans | $ | 32,384 | $ | 38,763 | |||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||
The Company assesses all loan modifications to determine whether a modification constitutes a troubled debt restructuring (“TDR”). For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired in association with consideration of qualitative factors included within ASC 310-40. All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of charge off and/or allowance for loan losses. | |||||||||||||||||||||||||
As of September 30, 2014, there were $14.2 million of nonperforming TDRs and $25.6 million of performing TDRs included in impaired loans. As of December 31, 2013, there were $17.9 million of nonperforming TDRs and $24.5 million of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. In subsequent years, a restructured obligation modified at a market rate and compliant with its modified terms for a minimum period of six months is no longer reported as a TDR. A loan that has been modified at a rate other than market will return to performing status if it satisfies the six month performance requirement; however, it will continue to be reported as a TDR and considered impaired. | |||||||||||||||||||||||||
The following tables present the recorded investment of loans modified in TDRs during the three and nine months ended September 30, 2014 and 2013 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. | |||||||||||||||||||||||||
Concession type | Financial effects of modification | ||||||||||||||||||||||||
(Dollars in thousands) | Principal | Principal | Interest rate | Forbearance | Total number | Total recorded | Net | Provision | |||||||||||||||||
deferral | reduction (1) | agreement | of loans | investment at | charge-offs | (benefit) for loan | |||||||||||||||||||
September 30, 2014 | (recoveries) | losses (2) | |||||||||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | 1 | $ | 166 | $ | 486 | $ | — | 8 | $ | 653 | $ | 18 | $ | 29 | ||||||||||
Commercial real estate | 435 | — | 258 | 126 | 7 | 819 | (18 | ) | (18 | ) | |||||||||||||||
Commercial and industrial | — | — | 35 | — | 2 | 35 | — | (31 | ) | ||||||||||||||||
Consumer | 27 | — | — | — | 1 | 27 | — | — | |||||||||||||||||
Total uncovered | 463 | 166 | 779 | 126 | 18 | 1,534 | — | (20 | ) | ||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | $ | 191 | $ | 14 | $ | — | $ | — | 4 | $ | 205 | $ | — | $ | (1 | ) | |||||||||
Commercial and industrial | — | — | 62 | — | 2 | 62 | — | 2 | |||||||||||||||||
Total covered | 191 | 14 | 62 | — | 6 | 267 | — | 1 | |||||||||||||||||
Total loans | $ | 654 | $ | 180 | $ | 841 | $ | 126 | 24 | $ | 1,801 | $ | — | $ | (19 | ) | |||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | 144 | $ | 384 | $ | 714 | $ | 135 | 23 | $ | 1,377 | $ | 65 | $ | 216 | ||||||||||
Commercial real estate | 435 | — | 979 | 1,159 | 12 | 2,573 | (46 | ) | 431 | ||||||||||||||||
Commercial and industrial | 36 | — | 93 | 112 | 12 | 241 | — | — | |||||||||||||||||
Consumer | 27 | 83 | — | — | 3 | 110 | 2 | 21 | |||||||||||||||||
Total uncovered | 642 | 467 | 1,786 | 1,406 | 50 | 4,301 | 21 | 668 | |||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | $ | 300 | $ | 28 | $ | 262 | $ | — | 17 | $ | 590 | $ | 6 | $ | 14 | ||||||||||
Commercial real estate | — | — | 643 | 412 | 3 | 1,055 | — | 70 | |||||||||||||||||
Commercial and industrial | — | — | 253 | 92 | 10 | 345 | — | 8 | |||||||||||||||||
Total covered | 300 | 28 | 1,158 | 504 | 30 | 1,990 | 6 | 92 | |||||||||||||||||
Total loans | $ | 942 | $ | 495 | $ | 2,944 | $ | 1,910 | 80 | $ | 6,291 | $ | 27 | $ | 760 | ||||||||||
(1) Loan forgiveness related to loans modified in TDRs for the three and nine months ended September 30, 2014 totaled $273 thousand and $677 thousand, respectively. | |||||||||||||||||||||||||
(2) The provision for loan losses for covered loans is partially offset by the build of an associated FDIC indemnification asset on covered loans. | |||||||||||||||||||||||||
Concession type | Financial effects of | ||||||||||||||||||||||||
modification | |||||||||||||||||||||||||
(Dollars in thousands) | Principal | Interest | Forbearance | Principal | Total | Total recorded | Net | Provision | |||||||||||||||||
deferral | rate | agreement | Reduction | number | investment at | charge-offs | (benefit) for | ||||||||||||||||||
of loans | September 30, 2013 | -1 | loan losses (2) | ||||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | — | $ | 614 | $ | — | $ | — | 3 | $ | 614 | $ | 11 | $ | 44 | ||||||||||
Commercial real estate | — | — | 1,631 | — | 1 | 1,631 | 14 | — | |||||||||||||||||
Consumer | — | 30 | — | — | 1 | 30 | — | 1 | |||||||||||||||||
Total uncovered | — | 644 | 1,631 | — | 5 | 2,275 | 25 | 45 | |||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | $ | 131 | $ | 169 | $ | — | $ | 28 | 6 | $ | 328 | $ | 16 | $ | 16 | ||||||||||
Commercial real estate | 160 | 607 | — | — | 3 | 767 | — | (5 | ) | ||||||||||||||||
Consumer | 7 | — | — | — | 1 | 7 | — | — | |||||||||||||||||
Total covered | 298 | 776 | — | 28 | 10 | 1,102 | 16 | 11 | |||||||||||||||||
Total loans | $ | 298 | $ | 1,420 | $ | 1,631 | $ | 28 | 15 | $ | 3,377 | $ | 41 | $ | 56 | ||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | 4 | $ | 1,170 | $ | — | $ | — | 10 | $ | 1,174 | $ | 11 | $ | 48 | ||||||||||
Commercial real estate | 1,795 | 1,355 | 1,650 | — | 10 | 4,800 | 155 | — | |||||||||||||||||
Commercial and industrial | — | 124 | — | — | 7 | 124 | — | — | |||||||||||||||||
Consumer | — | 30 | — | — | 1 | 30 | — | 1 | |||||||||||||||||
Total uncovered | 1,799 | 2,679 | 1,650 | — | 28 | 6,128 | 166 | 49 | |||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | $ | 905 | $ | 182 | $ | — | $ | 28 | 19 | $ | 1,115 | $ | 16 | $ | 16 | ||||||||||
Commercial real estate | 232 | 2,489 | — | — | 16 | 2,721 | 937 | 553 | |||||||||||||||||
Commercial and industrial | 608 | 548 | 69 | — | 31 | 1,225 | 44 | 37 | |||||||||||||||||
Real estate construction | 730 | 7 | — | — | 3 | 737 | — | — | |||||||||||||||||
Consumer | 7 | — | — | — | 2 | 7 | — | — | |||||||||||||||||
Total covered | 2,482 | 3,226 | 69 | 28 | 71 | 5,805 | 997 | 606 | |||||||||||||||||
Total loans | $ | 4,281 | $ | 5,905 | $ | 1,719 | $ | 28 | 99 | $ | 11,933 | $ | 1,163 | $ | 655 | ||||||||||
(1) Loan forgiveness related to loans modified in TDRs for the was $25 thousand for both the three and nine months ended September 30, 2013. | |||||||||||||||||||||||||
(2) The provision for loan losses for covered loans is partially offset by the build of an associated FDIC indemnification asset on covered loans. | |||||||||||||||||||||||||
When a modification qualifies as a TDR and was initially individually accounted for under ASC 310-30, the loan is required to be moved from ASC 310-30 accounting and accounted for under ASC 310-40. In order to accomplish the transfer of the accounting for the TDR from ASC 310-30 to ASC 310-40, the loan is essentially retained in the ASC 310-30 accounting model and subject to the quarterly cash flow re-estimation process. Similar to loans accounted for under ASC 310-30, deterioration in expected cash flows result in the recognition of allowance for loan losses. However, unlike loans accounted for under ASC 310-30, improvements in estimated cash flows on these loans result only in recapturing previously recognized allowance for loan losses and the yield remains at the last yield recognized under ASC 310-30. | |||||||||||||||||||||||||
On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following table presents the number of loans modified in TDRs during the previous 12 months for which there was payment default during the three and nine months ended September 30, 2014 and 2013, including the recorded investment as of September 30, 2014 and 2013. A payment on a TDR is considered to be in default once it is greater than 30 days past due. | |||||||||||||||||||||||||
For the three months ended September 30, 2014 | For the nine months ended September 30, 2014 | ||||||||||||||||||||||||
(Dollars in thousands) | Total number | Total recorded | Charged off following | Total number | Total recorded | Charged off following | |||||||||||||||||||
of loans | investment at | a subsequent default | of loans | investment at | a subsequent default | ||||||||||||||||||||
period end | period end | ||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | 11 | $ | 700 | $ | 8 | 21 | $ | 1,345 | $ | 119 | |||||||||||||||
Commercial real estate | 6 | 1,739 | — | 8 | 3,013 | 323 | |||||||||||||||||||
Commercial and industrial | 1 | 135 | — | 2 | 135 | — | |||||||||||||||||||
Total uncovered | 18 | 2,574 | 8 | 31 | 4,493 | 442 | |||||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | 6 | 29 | — | 9 | 242 | 12 | |||||||||||||||||||
Commercial real estate | 2 | 512 | — | 6 | 637 | — | |||||||||||||||||||
Commercial and industrial | 3 | 101 | 4 | 10 | 235 | 6 | |||||||||||||||||||
Real estate construction | — | — | — | 1 | 364 | 483 | |||||||||||||||||||
Total covered | 11 | 642 | 4 | 26 | 1,478 | 501 | |||||||||||||||||||
Total loans | 29 | $ | 3,216 | $ | 12 | 57 | $ | 5,971 | $ | 943 | |||||||||||||||
For the three months ended September 30, 2013 | For the nine months ended September 30, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Total number | Total recorded | Charged off following | Total number | Total recorded | Charged off following | |||||||||||||||||||
of loans | investment at | a subsequent default | of loans | investment at | a subsequent default | ||||||||||||||||||||
period end | period end | ||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | 1 | $ | 119 | $ | — | 6 | $ | 398 | $ | 25 | |||||||||||||||
Commercial real estate | 2 | 121 | 141 | 4 | 1,186 | 155 | |||||||||||||||||||
Commercial and industrial | — | — | — | 2 | 439 | — | |||||||||||||||||||
Consumer | 1 | 30 | — | 1 | 30 | 3 | |||||||||||||||||||
Total uncovered | 4 | 270 | 141 | 13 | 2,053 | 183 | |||||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | 10 | 345 | 11 | 16 | 488 | 236 | |||||||||||||||||||
Commercial real estate | 13 | 1,125 | 170 | 24 | 2,627 | 1,517 | |||||||||||||||||||
Commercial and industrial | 21 | 767 | 317 | 27 | 1,020 | 678 | |||||||||||||||||||
Real estate construction | 1 | 678 | — | 1 | 678 | — | |||||||||||||||||||
Consumer | 4 | 19 | 20 | 5 | 19 | 21 | |||||||||||||||||||
Total covered | 49 | 2,934 | 518 | 73 | 4,832 | 2,452 | |||||||||||||||||||
Total loans | 53 | $ | 3,204 | $ | 659 | 86 | $ | 6,885 | $ | 2,635 | |||||||||||||||
At September 30, 2014, commitments to lend additional funds to borrowers whose terms have been modified in TDRs totaled $943 thousand. | |||||||||||||||||||||||||
The terms of certain other loans that were modified during the three and nine months ending September 30, 2014 and 2013 that did not meet the definition of a TDR generally involved a modification of the terms of a loan to borrowers who were not deemed to be experiencing financial difficulties or a loan accounted for under ASC 310-30 that did not result in a lower effective yield than at the date of acquisition after the modification in association with consideration of qualitative factors included within ASC 310-40. The evaluation of whether or not a borrower is deemed to be experiencing financial difficulty is completed during loan committee meetings at the time of the loan approval. | |||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||
Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. | |||||||||||||||||||||||||
The Company categorizes commercial and industrial, commercial real estate and real estate construction loans into risk categories based on relevant information about the ability of borrowers to service their debt including, current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The risk rating system is used as a tool to analyze and monitor loan portfolio quality. Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. The following describes each risk category: | |||||||||||||||||||||||||
Pass: Includes all loans without weaknesses or potential weaknesses identified in the categories of special mention, substandard or doubtful. | |||||||||||||||||||||||||
Special Mention: Loans with potential credit weakness or credit deficiency, which, if not corrected, pose an unwarranted financial risk that could weaken the loan by adversely impacting the future repayment ability of the borrower. | |||||||||||||||||||||||||
Substandard: Loans with a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans also are distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. | |||||||||||||||||||||||||
Doubtful: Loans with all the characteristics of a loan classified as Substandard, with the added characteristic that credit weaknesses make collection in full highly questionable and improbable. | |||||||||||||||||||||||||
Commercial and industrial, commercial real estate and real estate construction loans by credit risk category were as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | ||||||||||||||||||||
Mention | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Uncovered loans | |||||||||||||||||||||||||
Commercial real estate | $ | 1,058,783 | $ | 60,705 | $ | 81,295 | $ | 12,578 | $ | 1,213,361 | |||||||||||||||
Commercial and industrial | 755,869 | 9,167 | 11,357 | 14,474 | 790,867 | ||||||||||||||||||||
Real estate construction | 96,037 | 1,435 | 5,195 | 253 | 102,920 | ||||||||||||||||||||
Total | $ | 1,910,689 | $ | 71,307 | $ | 97,847 | $ | 27,305 | $ | 2,107,148 | |||||||||||||||
Covered loans | |||||||||||||||||||||||||
Commercial real estate | $ | 122,631 | $ | 14,704 | $ | 76,704 | $ | 5,457 | $ | 219,496 | |||||||||||||||
Commercial and industrial | 27,002 | 3,066 | 13,093 | 4,091 | 47,252 | ||||||||||||||||||||
Real estate construction | 7,390 | 843 | 4,446 | 1,055 | 13,734 | ||||||||||||||||||||
Total | $ | 157,023 | $ | 18,613 | $ | 94,243 | $ | 10,603 | $ | 280,482 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Uncovered loans | |||||||||||||||||||||||||
Commercial real estate | $ | 645,276 | $ | 43,597 | $ | 61,375 | $ | 5,591 | $ | 755,839 | |||||||||||||||
Commercial and industrial | 423,295 | 10,237 | 10,431 | 2,681 | 446,644 | ||||||||||||||||||||
Real estate construction | 164,466 | 19 | 11,231 | 510 | 176,226 | ||||||||||||||||||||
Total | $ | 1,233,037 | $ | 53,853 | $ | 83,037 | $ | 8,782 | $ | 1,378,709 | |||||||||||||||
Covered loans | |||||||||||||||||||||||||
Commercial real estate | $ | 163,167 | $ | 17,058 | $ | 111,052 | $ | 8,124 | $ | 299,401 | |||||||||||||||
Commercial and industrial | 43,917 | 6,951 | 20,368 | 7,201 | 78,437 | ||||||||||||||||||||
Real estate construction | 6,193 | 2,803 | 6,850 | 1,372 | 17,218 | ||||||||||||||||||||
Total | $ | 213,277 | $ | 26,812 | $ | 138,270 | $ | 16,697 | $ | 395,056 | |||||||||||||||
For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans secured by a residence where the debt has been discharged but the borrower continues to make payments are considered nonperforming. | |||||||||||||||||||||||||
The following table presents residential real estate and consumer loans by credit quality: | |||||||||||||||||||||||||
(Dollars in thousands) | Performing | Nonperforming | Total | ||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Uncovered loans | |||||||||||||||||||||||||
Residential real estate | $ | 1,415,206 | $ | 15,733 | $ | 1,430,939 | |||||||||||||||||||
Consumer | 93,001 | 245 | 93,246 | ||||||||||||||||||||||
Total | $ | 1,508,207 | $ | 15,978 | $ | 1,524,185 | |||||||||||||||||||
Covered loans | |||||||||||||||||||||||||
Residential real estate | $ | 111,491 | $ | 1,737 | $ | 113,228 | |||||||||||||||||||
Consumer | 10,040 | 42 | 10,082 | ||||||||||||||||||||||
Total | $ | 121,531 | $ | 1,779 | $ | 123,310 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | 1,070,038 | $ | 15,415 | $ | 1,085,453 | |||||||||||||||||||
Consumer | 9,654 | 100 | 9,754 | ||||||||||||||||||||||
Total | $ | 1,079,692 | $ | 15,515 | $ | 1,095,207 | |||||||||||||||||||
Covered loans | |||||||||||||||||||||||||
Residential real estate | $ | 122,346 | $ | 988 | $ | 123,334 | |||||||||||||||||||
Consumer | 11,647 | 31 | 11,678 | ||||||||||||||||||||||
Total | $ | 133,993 | $ | 1,019 | $ | 135,012 |
ALLOWANCE_FOR_LOAN_LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ' | |||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ' | |||||||||||||||||||
6. ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
The allowance for loan losses represents management’s assessment of probable, incurred credit losses in the loan portfolio. The allowance for loan losses consists of specific allowances, based on individual evaluation of certain loans, and allowances for homogeneous pools of loans with similar risk characteristics. Management’s evaluation in establishing the adequacy of the allowance includes evaluation of actual past loan loss experience, probable incurred losses in the portfolio, adverse situations that may affect a specific borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, and other pertinent factors, such as periodic internal and external evaluations of delinquent, nonaccrual, and classified loans. The evaluation is inherently subjective as it requires utilizing material estimates. The evaluation of these factors is the responsibility of certain senior officers from the credit administration, finance, and lending areas. | ||||||||||||||||||||
The Company established an allowance for loan losses associated with purchased credit impaired loans (accounted for under ASC 310-30) based on credit deterioration subsequent to the acquisition date. The Company re-estimates cash flows expected to be collected for purchased credit impaired loans on a quarterly basis, with any decline in expected cash flows recorded as provision for loan losses on a discounted basis during the period. For any increases in cash flows expected to be collected, the Company first reverses any previously recorded allowance for loan loss, then adjusts the amount of accretable yield recognized on a prospective basis over the loan’s remaining life. | ||||||||||||||||||||
For loans not accounted for under ASC 310-30, the Company individually assesses for impairment all commercial real estate, commercial and industrial and real estate construction nonaccrual loans and TDRs greater than $250,000. For residential real estate loans and consumer loans, the Company assesses all loans for impairment if on nonaccrual status or if the loan is a TDR. | ||||||||||||||||||||
Information as to impaired loans individually evaluated for impairment is as follows: | ||||||||||||||||||||
(Dollars in thousands) | Recorded | Recorded | Total recorded | Contractual | Related | |||||||||||||||
investment with | investment | investment | principal | allowance | ||||||||||||||||
no related | with related | balance | ||||||||||||||||||
allowance | allowance | |||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
Uncovered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 12,861 | $ | 4,114 | $ | 16,975 | $ | 21,148 | $ | 1,078 | ||||||||||
Commercial real estate | 5,963 | 4,430 | 10,393 | 13,949 | 723 | |||||||||||||||
Commercial and industrial | 4,021 | 8,870 | 12,891 | 13,642 | 1,436 | |||||||||||||||
Consumer | 111 | 188 | 299 | 385 | 81 | |||||||||||||||
Total uncovered individually evaluated impaired loans | $ | 22,956 | $ | 17,602 | $ | 40,558 | $ | 49,124 | $ | 3,318 | ||||||||||
Covered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 2,307 | $ | 2,215 | $ | 4,522 | $ | 5,768 | $ | 351 | ||||||||||
Commercial real estate | 16,589 | 654 | 17,243 | 21,458 | 63 | |||||||||||||||
Commercial and industrial | 897 | 883 | 1,780 | 1,948 | 80 | |||||||||||||||
Real estate construction | 412 | 364 | 776 | 2,691 | 224 | |||||||||||||||
Consumer | 12 | 1 | 13 | 41 | 1 | |||||||||||||||
Total covered individually evaluated impaired loans | $ | 20,217 | $ | 4,117 | $ | 24,334 | $ | 31,906 | $ | 719 | ||||||||||
31-Dec-13 | ||||||||||||||||||||
Uncovered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 8,143 | $ | 5,871 | $ | 14,014 | $ | 17,005 | $ | 1,923 | ||||||||||
Commercial real estate | 4,588 | — | 4,588 | 4,423 | — | |||||||||||||||
Commercial and industrial | 1,817 | 1,065 | 2,882 | 3,548 | 284 | |||||||||||||||
Real estate construction | 359 | — | 359 | 359 | — | |||||||||||||||
Consumer | 3 | 30 | 33 | 33 | 1 | |||||||||||||||
Total uncovered individually evaluated impaired loans | $ | 14,910 | $ | 6,966 | $ | 21,876 | $ | 25,368 | $ | 2,208 | ||||||||||
Covered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 1,141 | $ | 1,537 | $ | 2,678 | $ | 3,389 | $ | 360 | ||||||||||
Commercial real estate | 17,138 | 924 | 18,062 | 21,814 | 230 | |||||||||||||||
Commercial and industrial | 3,704 | 1,417 | 5,121 | 5,503 | 937 | |||||||||||||||
Real estate construction | 1,138 | — | 1,138 | 2,672 | — | |||||||||||||||
Consumer | 6 | 19 | 25 | 45 | 2 | |||||||||||||||
Total covered individually evaluated impaired loans | $ | 23,127 | $ | 3,897 | $ | 27,024 | $ | 33,423 | $ | 1,529 | ||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||
September 30, 2014 | September 30, 2014 | |||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | ||||||||||||||||
investment | recognized | investment | recognized | |||||||||||||||||
Uncovered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 17,257 | $ | 177 | $ | 17,387 | $ | 505 | ||||||||||||
Commercial real estate | 10,365 | 74 | 11,324 | 586 | ||||||||||||||||
Commercial and industrial | 13,130 | 124 | 13,452 | 497 | ||||||||||||||||
Consumer | 308 | 7 | 288 | 14 | ||||||||||||||||
Total uncovered individually evaluated impaired loans | $ | 41,060 | $ | 382 | $ | 42,451 | $ | 1,602 | ||||||||||||
Covered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 4,537 | $ | 69 | $ | 4,573 | $ | 206 | ||||||||||||
Commercial real estate | 17,344 | 294 | 17,488 | 806 | ||||||||||||||||
Commercial and industrial | 1,789 | 18 | 1,795 | 51 | ||||||||||||||||
Real estate construction | 767 | 11 | 965 | 52 | ||||||||||||||||
Consumer | 14 | 1 | 19 | 3 | ||||||||||||||||
Total covered individually evaluated impaired loans | $ | 24,451 | $ | 393 | $ | 24,840 | $ | 1,118 | ||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | ||||||||||||||||
investment | recognized | investment | recognized | |||||||||||||||||
Uncovered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 4,970 | $ | — | $ | 4,760 | $ | — | ||||||||||||
Commercial real estate | 7,545 | 147 | 7,713 | 148 | ||||||||||||||||
Commercial and industrial | 1,280 | 19 | 1,387 | 68 | ||||||||||||||||
Real estate construction | 1,221 | — | 1,125 | — | ||||||||||||||||
Total uncovered individually evaluated impaired loans | $ | 15,016 | $ | 166 | $ | 14,985 | $ | 216 | ||||||||||||
Covered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 891 | $ | 15 | $ | 893 | $ | 40 | ||||||||||||
Commercial real estate | 18,814 | 1,222 | 19,394 | 1,810 | ||||||||||||||||
Commercial and industrial | 6,330 | 37 | 6,545 | 153 | ||||||||||||||||
Real estate construction | 1,084 | 16 | 1,045 | 48 | ||||||||||||||||
Consumer | 18 | 1 | 19 | 2 | ||||||||||||||||
Total covered individually evaluated impaired loans | $ | 27,137 | $ | 1,291 | $ | 27,896 | $ | 2,053 | ||||||||||||
Uncovered Loans | ||||||||||||||||||||
Changes in the allowance for loan losses and the allocation of the allowance for uncovered loans were as follows: | ||||||||||||||||||||
(Dollars in thousands) | Residential real | Commercial | Commercial | Real estate | Consumer | Total | ||||||||||||||
estate | real estate | and industrial | construction | |||||||||||||||||
For the three months ended September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Balance at beginning of period | $ | 9,750 | $ | 7,846 | $ | 5,140 | $ | 1,398 | $ | 226 | $ | 24,360 | ||||||||
Provision for loan losses | 1,943 | 3,176 | 2,363 | 178 | 124 | 7,784 | ||||||||||||||
Gross charge-offs | (1,597 | ) | (1,783 | ) | (826 | ) | (210 | ) | (55 | ) | (4,471 | ) | ||||||||
Recoveries | 800 | 1,017 | 79 | — | 323 | 2,219 | ||||||||||||||
Net (charge-offs) recoveries | (797 | ) | (766 | ) | (747 | ) | (210 | ) | 268 | (2,252 | ) | |||||||||
Ending allowance for loan losses | $ | 10,896 | $ | 10,256 | 6,756 | $ | 1,366 | $ | 618 | $ | 29,892 | |||||||||
For the nine months ended September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Balance at beginning of period | $ | 7,708 | $ | 4,267 | $ | 3,404 | $ | 2,027 | $ | 340 | $ | 17,746 | ||||||||
Provision (benefit) for loan losses | 5,502 | 9,100 | 4,124 | (1,306 | ) | 7 | 17,427 | |||||||||||||
Gross charge-offs | (4,414 | ) | (6,612 | ) | (1,452 | ) | (319 | ) | (179 | ) | (12,976 | ) | ||||||||
Recoveries | 2,100 | 3,501 | 680 | 964 | 450 | 7,695 | ||||||||||||||
Net (charge-offs) recoveries | (2,314 | ) | (3,111 | ) | (772 | ) | 645 | 271 | (5,281 | ) | ||||||||||
Ending allowance for loan losses | $ | 10,896 | $ | 10,256 | $ | 6,756 | $ | 1,366 | $ | 618 | $ | 29,892 | ||||||||
As of September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,078 | $ | 723 | $ | 1,436 | $ | — | $ | 81 | $ | 3,318 | ||||||||
Collectively evaluated for impairment | 4,572 | 3,598 | 4,805 | 520 | 392 | 13,887 | ||||||||||||||
Accounted for under ASC 310-30 | 5,246 | 5,935 | 515 | 846 | 145 | 12,687 | ||||||||||||||
Allowance for loan losses - uncovered: | $ | 10,896 | $ | 10,256 | $ | 6,756 | $ | 1,366 | $ | 618 | $ | 29,892 | ||||||||
Balance of loans - uncovered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 16,975 | $ | 10,393 | $ | 12,891 | $ | — | $ | 299 | $ | 40,558 | ||||||||
Collectively evaluated for impairment | 1,163,437 | 995,962 | 760,884 | 94,203 | 90,130 | 3,104,616 | ||||||||||||||
Accounted for under ASC 310-30 | 250,527 | 207,006 | 17,092 | 8,717 | 2,817 | 486,159 | ||||||||||||||
Total uncovered loans | $ | 1,430,939 | $ | 1,213,361 | $ | 790,867 | $ | 102,920 | $ | 93,246 | $ | 3,631,333 | ||||||||
For the three months ended September 30, 2013 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Balance at beginning of peiod | $ | 3,258 | $ | 4,771 | $ | 3,608 | $ | 1,862 | $ | 475 | $ | 13,974 | ||||||||
Provision (benefit) for loan losses | 2,904 | (138 | ) | 73 | 152 | (139 | ) | 2,852 | ||||||||||||
Gross charge-offs | (2,314 | ) | (772 | ) | (623 | ) | (28 | ) | (266 | ) | (4,003 | ) | ||||||||
Recoveries | 1,906 | 185 | 129 | 170 | 407 | 2,797 | ||||||||||||||
Net (charge-offs) recoveries | (408 | ) | (587 | ) | (494 | ) | 142 | 141 | (1,206 | ) | ||||||||||
Ending allowance for loan losses | $ | 5,754 | $ | 4,046 | $ | 3,187 | $ | 2,156 | $ | 477 | $ | 15,620 | ||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Balance at beginning of period | $ | 2,059 | $ | 4,265 | $ | 4,162 | $ | 268 | $ | 191 | $ | 10,945 | ||||||||
Provision (benefit) for loan losses | 6,380 | 772 | (233 | ) | 1,789 | 243 | 8,951 | |||||||||||||
Gross charge-offs | (5,085 | ) | (1,561 | ) | (926 | ) | (96 | ) | (505 | ) | (8,173 | ) | ||||||||
Recoveries | 2,400 | 570 | 184 | 195 | 548 | 3,897 | ||||||||||||||
Net (charge-offs) recoveries | (2,685 | ) | (991 | ) | (742 | ) | 99 | 43 | (4,276 | ) | ||||||||||
Ending allowance for loan losses | $ | 5,754 | $ | 4,046 | $ | 3,187 | $ | 2,156 | $ | 477 | $ | 15,620 | ||||||||
(Dollars in thousands) | Residential | Commercial | Commercial | Real estate | Consumer | Total | ||||||||||||||
real estate | real estate | and industrial | construction | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,923 | $ | — | $ | 284 | $ | — | $ | 1 | $ | 2,208 | ||||||||
Collectively evaluated for impairment | 2,697 | 2,862 | 2,959 | 2,025 | 224 | 10,767 | ||||||||||||||
Accounted for under ASC 310-30 | 3,088 | 1,405 | 161 | 2 | 115 | 4,771 | ||||||||||||||
Allowance for loan losses - uncovered: | $ | 7,708 | $ | 4,267 | $ | 3,404 | $ | 2,027 | $ | 340 | $ | 17,746 | ||||||||
Balance of loans - uncovered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 14,014 | $ | 4,588 | $ | 2,882 | $ | 359 | $ | 33 | $ | 21,876 | ||||||||
Collectively evaluated for impairment | 817,911 | 652,952 | 437,777 | 173,897 | 6,814 | 2,089,351 | ||||||||||||||
Accounted for under ASC 310-30 | 253,528 | 98,299 | 5,985 | 1,970 | 2,907 | 362,689 | ||||||||||||||
Total uncovered loans | $ | 1,085,453 | $ | 755,839 | $ | 446,644 | $ | 176,226 | $ | 9,754 | $ | 2,473,916 | ||||||||
Covered Loans | ||||||||||||||||||||
Changes in the allowance and the allocation of the allowance for covered loans were as follows: | ||||||||||||||||||||
(Dollars in thousands) | Residential | Commercial | Commercial | Real estate | Consumer | Total | ||||||||||||||
real estate | real estate | and industrial | construction | |||||||||||||||||
For the three months ended September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - covered: | ||||||||||||||||||||
Balance at beginning of period | $ | 5,312 | $ | 21,275 | $ | 4,540 | $ | 1,519 | $ | 97 | $ | 32,743 | ||||||||
Provision (benefit) for loan losses | (1,412 | ) | (3,191 | ) | (1,132 | ) | (500 | ) | (40 | ) | (6,275 | ) | ||||||||
Gross charge-offs | (371 | ) | (3,106 | ) | (565 | ) | (219 | ) | (71 | ) | (4,332 | ) | ||||||||
Recoveries | 558 | 1,585 | 1,067 | 352 | 70 | 3,632 | ||||||||||||||
Net (charge-offs) recoveries | 187 | (1,521 | ) | 502 | 133 | (1 | ) | (700 | ) | |||||||||||
Ending allowance for loan losses | $ | 4,087 | $ | 16,563 | $ | 3,910 | $ | 1,152 | $ | 56 | $ | 25,768 | ||||||||
For the nine months ended September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - covered: | ||||||||||||||||||||
Balance at beginning of period | $ | 4,696 | $ | 26,394 | $ | 7,227 | $ | 1,984 | $ | 80 | $ | 40,381 | ||||||||
Provision (benefit) for loan losses | (629 | ) | (11,030 | ) | (3,633 | ) | (678 | ) | (124 | ) | (16,094 | ) | ||||||||
Gross charge-offs | (1,646 | ) | (6,301 | ) | (3,092 | ) | (1,223 | ) | (148 | ) | (12,410 | ) | ||||||||
Recoveries | 1,666 | 7,500 | 3,408 | 1,069 | 248 | 13,891 | ||||||||||||||
Net (charge-offs) recoveries | 20 | 1,199 | 316 | (154 | ) | 100 | 1,481 | |||||||||||||
Ending allowance for loan losses | $ | 4,087 | $ | 16,563 | $ | 3,910 | $ | 1,152 | $ | 56 | $ | 25,768 | ||||||||
As of September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses- covered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 351 | $ | 63 | $ | 80 | $ | 224 | $ | 1 | $ | 719 | ||||||||
Collectively evaluated for impairment | 133 | 158 | 517 | 14 | 1 | 823 | ||||||||||||||
Accounted for under ASC 310-30 | 3,603 | 16,342 | 3,313 | 914 | 54 | 24,226 | ||||||||||||||
Allowance for loan losses | $ | 4,087 | $ | 16,563 | $ | 3,910 | $ | 1,152 | $ | 56 | $ | 25,768 | ||||||||
Balance of covered loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 4,522 | $ | 17,243 | $ | 1,780 | $ | 776 | $ | 13 | $ | 24,334 | ||||||||
Collectively evaluated for impairment | 17,943 | 5,059 | 12,495 | 427 | 120 | 36,044 | ||||||||||||||
Accounted for under ASC 310-30 | 90,763 | 197,194 | 32,977 | 12,531 | 9,949 | 343,414 | ||||||||||||||
Total covered loans | $ | 113,228 | $ | 219,496 | $ | 47,252 | $ | 13,734 | $ | 10,082 | $ | 403,792 | ||||||||
For the three months ended September 30, 2013 | ||||||||||||||||||||
Allowance for loan losses - covered: | ||||||||||||||||||||
Balance at beginning of period | $ | 4,951 | $ | 27,387 | $ | 10,512 | $ | 3,359 | $ | 103 | $ | 46,312 | ||||||||
Provision (benefit) for loan losses | 274 | (204 | ) | (268 | ) | (492 | ) | (37 | ) | (727 | ) | |||||||||
Gross charge-offs | (963 | ) | (2,451 | ) | (2,112 | ) | (803 | ) | (85 | ) | (6,414 | ) | ||||||||
Recoveries | 373 | 1,804 | 569 | 543 | 113 | 3,402 | ||||||||||||||
Net (charge-offs) recoveries | (590 | ) | (647 | ) | (1,543 | ) | (260 | ) | 28 | (3,012 | ) | |||||||||
Ending allowance for loan losses | $ | 4,635 | $ | 26,536 | $ | 8,701 | $ | 2,607 | $ | 94 | $ | 42,573 | ||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||||||
Allowance for loan losses - covered: | ||||||||||||||||||||
Balance at beginning of period | $ | 5,716 | $ | 30,150 | $ | 10,915 | $ | 4,509 | $ | 183 | $ | 51,473 | ||||||||
Provision (benefit) for loan losses | — | (4,205 | ) | (1,178 | ) | (1,516 | ) | (204 | ) | (7,103 | ) | |||||||||
Gross charge-offs | (2,183 | ) | (8,291 | ) | (3,818 | ) | (1,613 | ) | (179 | ) | (16,084 | ) | ||||||||
Recoveries | 1,102 | 8,882 | 2,782 | 1,227 | 294 | 14,287 | ||||||||||||||
Net (charge-offs) recoveries | (1,081 | ) | 591 | (1,036 | ) | (386 | ) | 115 | (1,797 | ) | ||||||||||
Ending allowance for loan losses | $ | 4,635 | $ | 26,536 | $ | 8,701 | $ | 2,607 | $ | 94 | $ | 42,573 | ||||||||
(Dollars in thousands) | Residential | Commercial | Commercial | Real estate | Consumer | Total | ||||||||||||||
real estate | real estate | and industrial | construction | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Allowance for loan losses- covered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 360 | $ | 230 | $ | 937 | $ | — | $ | 2 | $ | 1,529 | ||||||||
Collectively evaluated for impairment | 192 | 3,010 | 471 | 108 | 1 | 3,782 | ||||||||||||||
Accounted for under ASC 310-30 | 4,144 | 23,154 | 5,819 | 1,876 | 77 | 35,070 | ||||||||||||||
Allowance for loan losses | $ | 4,696 | $ | 26,394 | $ | 7,227 | $ | 1,984 | $ | 80 | $ | 40,381 | ||||||||
Balance of covered loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 2,678 | $ | 18,062 | $ | 5,121 | $ | 1,138 | $ | 25 | $ | 27,024 | ||||||||
Collectively evaluated for impairment | 20,622 | 18,570 | 21,909 | 812 | 145 | 62,058 | ||||||||||||||
Accounted for under ASC 310-30 | 100,034 | 262,769 | 51,407 | 15,268 | 11,508 | 440,986 | ||||||||||||||
Total covered loans | $ | 123,334 | $ | 299,401 | $ | 78,437 | $ | 17,218 | $ | 11,678 | $ | 530,068 |
ACQUIRED_LOANS_AND_LOSS_SHARE_
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | ' | |||||||||||||
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | ' | |||||||||||||
7. ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | ||||||||||||||
A significant amount of loans acquired in the CF Bancorp and First Banking Center acquisitions during the year 2010 and the Peoples State Bank and Community Central Bank acquisitions during the year 2011 are covered by loss sharing agreements with the FDIC, whereby the FDIC generally reimburses the Bank for the 80% of losses incurred. The CF Bancorp, First Banking Center and Peoples State Bank loss share agreements also include provisions where a clawback payment, calculated using formulas included within the contracts, is to be made to the FDIC 10 years and 45 days following the acquisition in the event actual losses fail to reach stated levels. The estimated FDIC clawback liability totaled $25.7 million ($21.5 million related to the CF Bancorp acquisition and $4.2 million related to the First Banking Center acquisition) at September 30, 2014 compared to $24.9 million ($21.0 million related to the CF Bancorp acquisition and $3.9 million related to the First Banking Center acquisition) at December 31, 2013. No clawback liability was recorded in relation to Peoples State Bank as of both September 30, 2014 and December 31, 2013. | ||||||||||||||
Acquired loans were recorded at fair value as of the acquisition date, which includes loans acquired in each FDIC-assisted acquisition and in the First Place Bank and Talmer West Bank acquisitions. At the acquisition date, where a loan exhibits evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all principal and interest payments in accordance with the terms of the loan agreement, the Company accounts for the loan under ASC 310-30 and recognizes the expected shortfall of expected future cash flows, as compared to the contractual amount due, as a nonaccretable discount. Any excess of the net present value of expected future cash flows over the acquisition date fair value is recognized as the accretable discount, or accretable yield. We recognize accretion of the accretable discount as interest income over the expected remaining life of the purchased loan. Fair value discounts/premiums created on acquired loans accounted for outside the scope of ASC 310-30 are accounted for under ASC 310-20 and are accreted/amortized into interest income over the remaining term of the loan as an adjustment to the related loans yield. | ||||||||||||||
Changes in the carrying amount of accretable discount for purchased loans accounted for under ASC 310-30 were as follows: | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Balance at beginning of period | $ | 305,592 | $ | 325,724 | $ | 302,287 | $ | 216,970 | ||||||
Additions due to acquisitions | — | — | 32,764 | 158,221 | ||||||||||
Discount accretion | (22,417 | ) | (24,023 | ) | (68,249 | ) | (75,582 | ) | ||||||
Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations | 32,004 | 24,407 | 72,911 | 64,856 | ||||||||||
Other activity, net (1) | (14,584 | ) | (10,276 | ) | (39,118 | ) | (48,633 | ) | ||||||
Balance at end of period | $ | 300,595 | $ | 315,832 | $ | 300,595 | $ | 315,832 | ||||||
(1) Primarily includes changes in the accretable discount due to loan payoffs, foreclosures and charge-offs. | ||||||||||||||
For loans accounted for under ASC 310-30, the Company remeasures expected cash flows on a quarterly basis. For loans where the remeasurement process results in a decline in expected cash flows, impairment is recorded. As a result of this impairment, the indemnification asset is increased to reflect anticipated future cash to be received from the FDIC. Alternatively, when a loan’s remeasurement results in an increase in expected cash flows, the effective yield of the related loan is increased through an addition to the accretable discount. As a result of the improved cash flows, the indemnification asset is first reduced by the writing off of any indemnification asset related to impairment previously recorded with any remaining indemnification asset accreting off over the shorter of the expected term of the loan or the remaining life of the related loss-sharing agreement. | ||||||||||||||
The total identified improvement in the cash flow expectations resulting in yield adjustments on a prospective basis during the three months ended September 30, 2014 and 2013 for both covered and uncovered purchased credit impaired loans was $32.0 million and $24.4 million, respectively. During the nine months ended September 30, 2014 and 2013, the total identified improvement in the cash flow expectations resulting in yield adjustments on a prospective basis was $72.9 million and $64.9 million, respectively. The Company also identified declines in the cash flow expectations of certain loans. A decline in the present value of current expected cash flows compared to the previously estimated expected cash flows, due in any part to change in credit, is referred to as credit impairment and recorded as provision for loan losses during the period. Declines in the present value of expected cash flows only from the expected timing of such cash flows is referred to as timing impairment and recognized prospectively as a decrease in yield on the loan. | ||||||||||||||
Below is the composition of the recorded investment for loans accounted for under ASC 310-30 at September 30, 2014 and December 31, 2013. | ||||||||||||||
September 30, | December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||
Contractual cash flows | $ | 1,397,034 | $ | 1,357,070 | ||||||||||
Non-accretable difference | (266,866 | ) | (251,108 | ) | ||||||||||
Accretable yield | (300,595 | ) | (302,287 | ) | ||||||||||
Loans accounted for under ASC 310-30 | $ | 829,573 | $ | 803,675 | ||||||||||
The following table details the components and impact of the provision for loan losses on covered loans and the related FDIC loss sharing income. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Provision (benefit) for loan losses - covered: | ||||||||||||||
Impairment (benefit) recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) | $ | (1,329 | ) | $ | 1,615 | $ | 1,036 | $ | 9,989 | |||||
Additional benefit recorded, net of charge-offs, for covered loans | (4,946 | ) | (2,342 | ) | (17,130 | ) | (17,092 | ) | ||||||
Total provision (benefit) for loan losses-covered | $ | (6,275 | ) | $ | (727 | ) | $ | (16,094 | ) | $ | (7,103 | ) | ||
Less: FDIC loss share income: | ||||||||||||||
Income recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) | 176 | 875 | 3,680 | 4,481 | ||||||||||
Expense recorded, to offset provision (benefit), for covered loans | (2,978 | ) | (1,874 | ) | (10,445 | ) | (13,674 | ) | ||||||
Total loss sharing expense due to provision for loan losses-covered | (2,802 | ) | (999 | ) | (6,765 | ) | (9,193 | ) | ||||||
Net (increase) decrease to income before taxes: | ||||||||||||||
Net (income) expense recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) | (1,505 | ) | 740 | (2,644 | ) | 5,508 | ||||||||
Net (income) expense recorded, for covered loans including those accounted for under ASC 310-20 and ASC 310-40 | (1,968 | ) | (468 | ) | (6,685 | ) | (3,418 | ) | ||||||
Net (increase) decrease to income before taxes | $ | (3,473 | ) | $ | 272 | $ | (9,329 | ) | $ | 2,090 | ||||
(1) The results of re-estimations also included cash flow improvements to be recognized prospectively as an adjustment to the accretable yield on the loan related to covered loans of $17.4 million and $6.8 million for the three months ended September 30, 2014 and 2013, respectively, and $33.9 million and $38.5 million for the nine months ended September 30, 2014, and 2013, respectively. | ||||||||||||||
The following table summarizes the activity related to the FDIC indemnification asset and the FDIC receivable for the three and nine months ended September 30, 2014 and 2013. For further detail on impairment and provision expense related to loans accounted for under ASC Topic 310-30, refer to Note 6 “Allowance for Loan Losses.” | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, 2014 | September 30, 2014 | |||||||||||||
(Dollars in thousands) | FDIC | FDIC | FDIC | FDIC | ||||||||||
Indemnification | Receivable | Indemnification | Receivable | |||||||||||
Asset | Asset | |||||||||||||
Balance at beginning of period | $ | 102,694 | $ | 7,198 | $ | 131,861 | $ | 7,783 | ||||||
Accretion | (6,663 | ) | — | (18,887 | ) | — | ||||||||
Sales and write-downs of other real estate owned (covered) | (88 | ) | 233 | (841 | ) | (14 | ) | |||||||
Net effect of change in allowance on covered assets (1) | (5,484 | ) | — | (13,639 | ) | — | ||||||||
Reimbursements requested from FDIC (reclassification to FDIC receivable) | (8,018 | ) | 8,018 | (16,053 | ) | 16,053 | ||||||||
Decrease due to recoveries net of additional claimable expenses incurred (2) | — | (269 | ) | — | (4,588 | ) | ||||||||
Claim payments received from the FDIC | — | (2,307 | ) | — | (6,361 | ) | ||||||||
Balance at end of period | $ | 82,441 | $ | 12,873 | $ | 82,441 | $ | 12,873 | ||||||
(1) Primarily includes adjustments for fully claimed and exited loans and the results of remeasurement of expected cash flows under ASC 310-30 accounting. | ||||||||||||||
(2) Includes expenses associated with maintaining the underlying properties and legal fees. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
(Dollars in thousands) | FDIC | FDIC | FDIC | FDIC | ||||||||||
Indemnification | Receivable | Indemnification | Receivable | |||||||||||
Asset | Asset | |||||||||||||
Balance at beginning of period | $ | 171,956 | $ | 17,573 | $ | 226,356 | $ | 17,999 | ||||||
Accretion | (6,032 | ) | — | (21,088 | ) | — | ||||||||
Sales and write-downs of other real estate owned (covered) | (1,070 | ) | 861 | (3,388 | ) | 2,288 | ||||||||
Net effect of change in allowance on covered assets (1) | (8,179 | ) | — | (29,052 | ) | — | ||||||||
Reimbursements requested from FDIC (reclassification to FDIC receivable) | (8,350 | ) | 8,350 | (24,503 | ) | 24,503 | ||||||||
Decrease due to additional claimable expenses incurred net of recoveries (2) | — | (2,713 | ) | — | (2,326 | ) | ||||||||
Claim payments received from the FDIC | — | (10,541 | ) | — | (28,934 | ) | ||||||||
Balance at end of period | $ | 148,325 | $ | 13,530 | $ | 148,325 | $ | 13,530 | ||||||
(1) Primarily includes adjustments for fully claimed and exited loans and the results of remeasurement of expected cash flows under ASC 310-30 accounting. | ||||||||||||||
(2) Includes expenses associated with maintaining the underlying properties and legal fees. |
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
8. OTHER REAL ESTATE OWNED | |||||||||||
Changes in other real estate owned were as follows: | |||||||||||
(Dollars in thousands) | Uncovered | Covered | Total | ||||||||
Balance at January 1, 2014 | $ | 18,384 | $ | 11,571 | $ | 29,955 | |||||
Additions due to acquisitions | 30,878 | — | 30,878 | ||||||||
Transferred to other real estate owned (1) | 10,889 | 7,989 | 18,878 | ||||||||
Disposals | (24,116 | ) | (6,189 | ) | (30,305 | ) | |||||
Write-downs | (2,861 | ) | (1,605 | ) | (4,466 | ) | |||||
Balance at September 30, 2014 | $ | 33,174 | $ | 11,766 | $ | 44,940 | |||||
Balance at January 1, 2013 | $ | 869 | $ | 23,834 | $ | 24,703 | |||||
Additions due to acquisitions | 18,448 | — | 18,448 | ||||||||
Transferred to other real estate owned (1) | 8,598 | 10,634 | 19,232 | ||||||||
Disposals | (9,995 | ) | (13,293 | ) | (23,288 | ) | |||||
Write-downs | (1,408 | ) | (4,314 | ) | (5,722 | ) | |||||
Balance at September 30, 2013 | $ | 16,512 | $ | 16,861 | $ | 33,373 | |||||
(1) Includes loans transferred to other real estate owned and transfers to other real estate owned due to branch or building operation closings/consolidations. | |||||||||||
Income and expenses related to other real estate owned were as follows: | |||||||||||
(Dollars in thousands) | Uncovered | Covered | Total | ||||||||
For the three months ended September 30, 2014 | |||||||||||
Net gain on sale | $ | 2,367 | $ | 60 | $ | 2,427 | |||||
Write-downs | (1,361 | ) | (701 | ) | (2,062 | ) | |||||
Net operating expenses | (778 | ) | (60 | ) | (838 | ) | |||||
Total | $ | 228 | $ | (701 | ) | $ | (473 | ) | |||
For the nine months ended September 30, 2014 | |||||||||||
Net gain on sale | $ | 6,369 | $ | 291 | $ | 6,660 | |||||
Write-downs | (2,861 | ) | (1,605 | ) | (4,466 | ) | |||||
Net operating expenses | (2,323 | ) | (133 | ) | (2,456 | ) | |||||
Total | $ | 1,185 | $ | (1,447 | ) | $ | (262 | ) | |||
For the three months ended September 30, 2013 | |||||||||||
Net gain on sale | $ | 43 | $ | 510 | $ | 553 | |||||
Write-downs | (155 | ) | (2,008 | ) | (2,163 | ) | |||||
Net operating (expenses) income | (200 | ) | 27 | (173 | ) | ||||||
Total | $ | (312 | ) | $ | (1,471 | ) | $ | (1,783 | ) | ||
For the nine months ended September 30, 2013 | |||||||||||
Net gain on sale | $ | 2,461 | $ | 636 | $ | 3,097 | |||||
Write-downs | (1,408 | ) | (4,314 | ) | (5,722 | ) | |||||
Net operating (expenses) income | (937 | ) | 118 | (819 | ) | ||||||
Total | $ | 116 | $ | (3,560 | ) | $ | (3,444 | ) | |||
Note that covered other real estate expenses and income are partially offset by the corresponding recording of FDIC loss share income or expense. |
CORE_DEPOSIT_INTANGIBLES
CORE DEPOSIT INTANGIBLES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
CORE DEPOSIT INTANGIBLES | ' | |||||||
CORE DEPOSIT INTANGIBLES | ' | |||||||
9. CORE DEPOSIT INTANGIBLES | ||||||||
The Company recorded core deposit intangibles (CDIs) associated with the acquisitions of CF Bancorp, First Banking Center, Peoples State Bank, Community Central Bank, First Place Bank and Talmer West Bank. CDIs are amortized on an accelerated basis over their estimated useful lives and have an estimated remaining weighted-average useful life of 7.56 years as of September 30, 2014. The Company had no other intangible assets as of September 30, 2014 or December 31, 2013. | ||||||||
The table below presents the Company’s net carrying amount of CDIs. | ||||||||
September 30, | December 31, | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Gross carrying amount | $ | 20,658 | $ | 19,331 | ||||
Accumulated amortization | (6,962 | ) | (6,126 | ) | ||||
Net carrying amount | $ | 13,696 | $ | 13,205 | ||||
Amortization expense recognized on CDIs was $680 thousand and $663 thousand for the three months ended September 30, 2014 and 2013, respectively, and $2.1 million and $2.0 million for the nine months ended September 30, 2014 and 2013, respectively, included as a component of “other expense” on the Consolidated Statements of Income. | ||||||||
In the third quarter of 2014 we sold our branch offices located in Wisconsin (acquired in our First Banking Center acquisition) and our single branch office in Albuquerque, New Mexico (acquired in our Talmer West Bank acquisition). The branch sales included all of the deposits of the branches, resulting in the write-off of the related core deposit intangibles totaling $1.0 million. |
LOAN_SERVICING_RIGHTS
LOAN SERVICING RIGHTS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
LOAN SERVICING RIGHTS | ' | |||||||||||||
LOAN SERVICING RIGHTS | ' | |||||||||||||
10. LOAN SERVICING RIGHTS | ||||||||||||||
Loan servicing rights are created as a result of the Company’s mortgage banking origination activities, the purchase of mortgage servicing rights, the origination and purchase of agricultural servicing rights and the origination and purchase of commercial real estate servicing rights. Loans serviced for others are not reported as assets in the Consolidated Balance Sheets. | ||||||||||||||
The Company elected as of January 1, 2013 to account for all loan servicing rights under the fair value method. This change in accounting policy resulted in a cumulative adjustment to retained earnings as of January 1, 2013 in the amount of $31 thousand. For further information on this election, refer to the Consolidated Financial Statements in the Company’s 2013 Annual Report. The following table represents the activity for loan servicing rights and the related fair value changes. | ||||||||||||||
Commercial | ||||||||||||||
(Dollars in thousands) | Real Estate | Agricultural | Mortgage | Total | ||||||||||
For the three months ended September 30, 2014 | ||||||||||||||
Fair value, beginning of period | $ | 837 | $ | 876 | $ | 72,391 | $ | 74,104 | ||||||
Additions from loans sold with servicing retained | — | 2 | 2,296 | 2,298 | ||||||||||
Changes in fair value due to: | ||||||||||||||
Reductions from loans paid off during the period | (57 | ) | (83 | ) | (1,706 | ) | (1,846 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (18 | ) | (24 | ) | (134 | ) | (176 | ) | ||||||
Fair value, end of period | $ | 762 | $ | 771 | $ | 72,847 | $ | 74,380 | ||||||
For the nine months ended September 30, 2014 | ||||||||||||||
Fair value, beginning of period | $ | 368 | $ | 962 | $ | 77,273 | $ | 78,603 | ||||||
Additions due to acquisition | 767 | — | — | 767 | ||||||||||
Additions from loans sold with servicing retained | — | 125 | 5,921 | 6,046 | ||||||||||
Changes in fair value due to: | ||||||||||||||
Reductions from loans paid off during the period | (125 | ) | (220 | ) | (4,110 | ) | (4,455 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (248 | ) | (96 | ) | (6,237 | ) | (6,581 | ) | ||||||
Fair value, end of period | $ | 762 | $ | 771 | $ | 72,847 | $ | 74,380 | ||||||
Principal balance of loans serviced | $ | 222,262 | $ | 37,301 | $ | 7,069,937 | $ | 7,329,500 | ||||||
For the three months ended September 30, 2013 | ||||||||||||||
Fair value, beginning of period | $ | 438 | $ | 1,099 | $ | 63,650 | $ | 65,187 | ||||||
Additions from loans sold with servicing retained | — | 5 | 6,628 | 6,633 | ||||||||||
Changes in fair value due to: | ||||||||||||||
Reductions from loans paid off during the period | (6 | ) | (74 | ) | (1,576 | ) | (1,656 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (20 | ) | 15 | 1,592 | 1,587 | |||||||||
Fair value, end of period | $ | 412 | $ | 1,045 | $ | 70,294 | $ | 71,751 | ||||||
For the nine months ended September 30, 2013 | ||||||||||||||
Fair value, beginning of period | $ | 518 | $ | 1,456 | $ | 3,683 | $ | 5,657 | ||||||
Additions due to acquisition | — | — | 41,967 | 41,967 | ||||||||||
Additions from loans sold with servicing retained | — | 70 | 20,060 | 20,130 | ||||||||||
Changes in fair value due to: | ||||||||||||||
Reductions from loans paid off during the period | (10 | ) | (397 | ) | (4,167 | ) | (4,574 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (96 | ) | (84 | ) | 8,751 | 8,571 | ||||||||
Fair value, end of period | $ | 412 | $ | 1,045 | $ | 70,294 | $ | 71,751 | ||||||
Principal balance of loans serviced | $ | 281,091 | $ | 47,824 | $ | 7,022,362 | $ | 7,351,277 | ||||||
(1) Represents estimated fair value changes primarily due to prepayment speeds and market-driven changes in interest rates. | ||||||||||||||
Expected and actual loan prepayment speeds are the most significant factors driving the fair value of loan servicing rights. The following table presents assumptions utilized in determining the fair value of loan servicing rights as of September 30, 2014 and December 31, 2013. | ||||||||||||||
Commercial | ||||||||||||||
Real Estate | Agricultural | Mortgage | ||||||||||||
As of September 30, 2014 | ||||||||||||||
Prepayment speed | 6.37 - 50.00% | 5.57 - 47.08% | 3.77 - 44.78% | |||||||||||
Weighted average (“WA”) discount rate | 19.47% | 15.00% | 9.65% | |||||||||||
WA cost to service/per year | $ | 470 | $ | 200 | $ | 57 | ||||||||
WA Ancillary income/per year | N/A | N/A | 36 | |||||||||||
WA float range | 0.56% | 0.56% | 1.15 - 1.83% | |||||||||||
As of December 31, 2013 | ||||||||||||||
Prepayment speed | 8.50-50.00% | 4.98-53.16% | 3.55-44.49% | |||||||||||
WA discount rate | 20.00% | 15.00% | 10.17% | |||||||||||
WA cost to service/per year | $ | 467 | $ | 200 | $ | 57 | ||||||||
WA Ancillary income/per year | N/A | N/A | 45 | |||||||||||
WA float range | 0.56% | 0.56% | 0.73-1.54% | |||||||||||
The Company realized total loan servicing fee income of $3.1 million and $4.8 million, for the three months ended September 30, 2014 and 2013, respectively, and $10.4 million and $13.4 million for the nine months ended September 30, 2014 and 2013, respectively, recorded as a component of “Mortgage banking and other loan fees” in the Consolidated Statements of Income. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
DERIVATIVE INSTRUMENTS | ' | |||||||||||||||
DERIVATIVE INSTRUMENTS | ' | |||||||||||||||
11. DERIVATIVE INSTRUMENTS | ||||||||||||||||
In the normal course of business, the Company enters into various transactions involving derivative instruments to manage exposure to fluctuations in interest rates and to meet the financing needs of customers (customer initiated derivatives). These financial instruments involve, to varying degrees, elements of market and credit risk. Market and credit risk are included in in the determination of fair value. | ||||||||||||||||
Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to enter into forward commitments for the future delivery of mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. | ||||||||||||||||
The Company additionally enters into interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies, customer-initiated derivatives, and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company generally takes offsetting positions with dealer counterparts to mitigate the inherent risk. Income primarily results from the spread between the customer derivative and the offsetting dealer positions. | ||||||||||||||||
The Company has no derivatives designated as qualifying accounting hedging instruments. | ||||||||||||||||
The following table reflects the amount and fair value of mortgage banking and customer-initiated derivatives. Fair values of customer-initiated derivative instruments represent the net unrealized gains or losses on such contracts and are recorded in the Consolidated Balance Sheets. Changes in fair value are recorded as a component of “Other noninterest income” in the Consolidated Statements of Income. | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
(Dollars in thousands) | Notional | Fair | Notional | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Included in “Other assets”: | ||||||||||||||||
Forward contracts related to mortgage loans to be delivered for sale | $ | — | $ | — | $ | 168,746 | $ | 1,484 | ||||||||
Interest rate lock commitments | 77,078 | 1,429 | 67,685 | 1,146 | ||||||||||||
Customer initiated derivatives | 16,387 | 369 | — | — | ||||||||||||
Total included in “Other assets” | $ | 93,465 | $ | 1,798 | $ | 236,431 | $ | 2,630 | ||||||||
Included in “Other liabilities”: | ||||||||||||||||
Forward contracts related to mortgage loans to be delivered for sale | $ | 167,795 | $ | 166 | $ | — | $ | — | ||||||||
Customer initiated derivatives | 13,764 | 195 | — | — | ||||||||||||
Total included in “Other liabilities” | $ | 181,559 | $ | 361 | $ | — | $ | — | ||||||||
In the normal course of business, the Company may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in “Net gain on sales of loans” in the Consolidated Statements of Income and is considered a cost of executing a forward contract. | ||||||||||||||||
The following table reflects the net gains (losses) relating to derivative instruments related to the changes in fair value. | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Dollars in thousands) | Location of Gain (Loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Forward contracts related to mortgage loans to be delivered for sale | Net gain on sale of loans | $ | (463 | ) | $ | (3,741 | ) | $ | (10,372 | ) | $ | 22,386 | ||||
Interest rate lock commitments | Net gain on sale of loans | (853 | ) | 5,162 | 284 | (3,672 | ) | |||||||||
Customer-inititated derivatives | Other noninterest income | 4 | — | 23 | — | |||||||||||
Total gain (loss) recognized in income | $ | (1,312 | ) | $ | 1,421 | $ | (10,065 | ) | $ | 18,714 | ||||||
Methods and assumptions used by the Company in estimating the fair value of its forward contracts, interest rate lock commitments and customer-initiated derivatives are discussed in Note 3, “Fair Value”. |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
COMMITMENTS, CONTINGENCIES AND GUARANTEES | ' | |||||||||||||||||||
COMMITMENTS, CONTINGENCIES AND GUARANTEES | ' | |||||||||||||||||||
12. COMMITMENTS, CONTINGENCIES AND GUARANTEES | ||||||||||||||||||||
Commitments | ||||||||||||||||||||
In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. | ||||||||||||||||||||
The Company’s exposure to credit loss, in the event of nonperformance by the counterparty to the financial instrument, is represented by the contractual amounts of those instruments. The credit policies used in making commitments and conditional obligations are the same as those used for on-balance sheet instruments. | ||||||||||||||||||||
Commitments to extend credit are agreements to lend to a customer provided there is no violation of any condition established in the commitment. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on an individual basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. The collateral held varies, but may include securities, real estate, inventory, plant, or equipment. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are included in commitments to extend credit. These lines of credit are generally uncollateralized, usually do not contain a specified maturity date and may be drawn upon only to the total extent to which the Company is committed. | ||||||||||||||||||||
Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The Company’s portfolio of standby letters of credit consists primarily of performance assurances made on behalf of customers who have a contractual commitment to produce or deliver goods or services. The risk to the Company arises from its obligation to make payment in the event of the customers’ contractual default to produce the contracted good or service to a third party. | ||||||||||||||||||||
The allowance for credit losses on lending-related commitments included $498 thousand and $1.0 million at September 30, 2014 and December 31, 2013, respectively, for probable credit losses inherent in the Company’s unused commitments and was recorded in “Other liabilities” in the Consolidated Balance Sheets. | ||||||||||||||||||||
A summary of the contractual amounts of the Company’s exposure to off-balance sheet risk is as follows: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Fixed Rate | Variable Rate | Total | Fixed Rate | Variable Rate | Total | ||||||||||||||
Commitments to extend credit | $ | 591,410 | $ | 542,898 | $ | 1,134,308 | $ | 523,666 | $ | 216,473 | $ | 740,139 | ||||||||
Standby letters of credit | 69,169 | 4,037 | 73,206 | 68,452 | 561 | 69,013 | ||||||||||||||
Total commitments | $ | 660,579 | $ | 546,935 | $ | 1,207,514 | $ | 592,118 | $ | 217,034 | $ | 809,152 | ||||||||
Contingencies and Guarantees | ||||||||||||||||||||
The Company has originated and sold certain loans for which the buyer has limited recourse to us in the event the loans do not perform as specified in the agreements. These loans had an outstanding balance of $65.3 million and $79.5 million at September 30, 2014 and December 31, 2013, respectively. The maximum potential amount of undiscounted future payments that we could be required to make in the event of nonperformance by the borrower totaled $33.4 million and $42.9 million, at September 30, 2014 and December 31, 2013, respectively. In the event of nonperformance, we have rights to the underlying collateral securing the loans. As of September 30, 2014 and December 31, 2013, we had recorded a liability of $275 thousand and $567 thousand, respectively, in connection with the recourse agreements, recorded in “Other liabilities” in the Consolidated Balance Sheets. | ||||||||||||||||||||
We issue standby letters of credit for commercial customers to third parties to guarantee the performance of those customers to the third parties. If the customer fails to perform, we perform in their place and record the funds advanced as an interest-bearing loan. These letters of credit are underwritten using the same policies and criteria applied to commercial loans. Therefore, they represent the same risk to us as a loan to that commercial loan customer. At September 30, 2014 and December 31, 2013, our standby letters of credit totaled $73.2 million and $69.0 million, respectively. | ||||||||||||||||||||
Representations and Warranties | ||||||||||||||||||||
In connection with our mortgage banking loan sales, we make certain representations and warranties that the loans meet certain criteria, such as collateral type and underwriting standards. We may be required to repurchase individual loans and/or indemnify the purchaser against losses if the loan fails to meet established criteria. At September 30, 2014 and December 31, 2013, our liability recorded in connection with these representations and warranties totaled $4.0 million and $4.8 million, respectively. | ||||||||||||||||||||
Legal Proceedings | ||||||||||||||||||||
The Company and certain of its subsidiaries are subject to various pending or threatened legal proceedings arising out of the normal course of business. Some of these claims are against entities or assets of which the Company has acquired in business acquisitions, and certain of these claims, or future claims, will be covered by loss sharing agreements with the FDIC. | ||||||||||||||||||||
The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, in the opinion of management, any liabilities arising from pending legal proceedings would not have a material adverse effect on the Company’s financial statements. |
SHORTTERM_BORROWINGS_AND_LONGT
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | ' | |||||||||||
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | ' | |||||||||||
13. SHORT-TERM BORROWINGS AND LONG-TERM DEBT | ||||||||||||
The following table presents the components of the Company’s short-term borrowings and long-term debt. | ||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||
(Dollars in thousands) | Amount | Weighted | Amount | Weighted | ||||||||
Average Rate (1) | Average Rate (1) | |||||||||||
Short-term borrowings: | ||||||||||||
Securities sold under agreements to repurchase: 0.10%-0.28% floating-rate notes | $ | 80,573 | 0.21 | % | $ | 36,876 | 0.2 | % | ||||
FHLB advances: 0.31% fixed-rate notes | 50,000 | 0.31 | % | — | — | |||||||
FHLB advances: 0.07% floating-rate | 20,000 | 0.07 | % | — | — | |||||||
Holding company line of credit: floating-rate based on one-month LIBOR plus 2.85% | — | — | 35,000 | 3.17 | % | |||||||
Total short-term borrowings | 150,573 | 0.22 | % | 71,876 | 1.64 | % | ||||||
Long-term debt: | ||||||||||||
FHLB advances: 0.19% - 7.44% fixed-rate notes due April 2015 to 2027 (2) | 217,466 | 1.99 | % | 130,368 | 3.28 | % | ||||||
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 (3) | 56,853 | 4.19 | % | 58,079 | 4.19 | % | ||||||
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 1.45-2.85% due 2034 to 2035 (4) | 10,690 | 2.48 | % | 10,590 | 2.49 | % | ||||||
Total long-term debt | 285,009 | 2.45 | % | 199,037 | 3.5 | % | ||||||
Total short-term borrowings and long-term debt: | $ | 435,582 | 1.68 | % | $ | 270,913 | 3.01 | % | ||||
(1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. | ||||||||||||
(2) The September 30, 2014 balance includes advances payable of $210.2 million and purchase accounting premiums of $7.3 million. The December 31, 2013 balance includes advances payable of $121.2 million and purchase accounting premiums of $9.2 million. | ||||||||||||
(3) The September 30, 2014 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $6.9 million. The December 31, 2013 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $8.1 million. | ||||||||||||
(4) The September 30, 2014 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.3 million. The December 31, 2013 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.4 million. | ||||||||||||
Selected financial information pertaining to the components of our short-term borrowings is as follows: | ||||||||||||
For the three months ended | For the nine months ended | |||||||||||
(Dollars in thousands) | September 30, 2014 | September 30, 2014 | ||||||||||
Securities sold under agreement to repurchase: | ||||||||||||
Average daily balance | $ | 136,707 | $ | 97,156 | ||||||||
Average interest rate during the period | 0.14 | % | 0.12 | % | ||||||||
Maximum month-end balance | $ | 166,925 | $ | 166,925 | ||||||||
FHLB advances: | ||||||||||||
Average daily balance | $ | 82,935 | $ | 40,966 | ||||||||
Average interest rate during the period | 0.19 | % | 0.8 | % | ||||||||
Maximum month-end balance | $ | 70,000 | $ | 90,000 | ||||||||
Federal funds purchased: | ||||||||||||
Average daily balance | $ | 217 | $ | 1,568 | ||||||||
Average interest rate during the period | 0.31 | % | 0.27 | % | ||||||||
Interest rate at period end | N/A | -1 | N/A | -1 | ||||||||
Maximum month-end balance | $ | — | $ | — | ||||||||
FHLB overnight repurchase agreements: | ||||||||||||
Average daily balance | $ | — | $ | 2,931 | ||||||||
Average interest rate during the period | 0 | % | 0.1 | % | ||||||||
Interest rate at period end | N/A | -1 | N/A | -1 | ||||||||
Maximum month-end balance | $ | — | $ | — | ||||||||
Holding company line of credit: | ||||||||||||
Average daily balance | $ | — | $ | 7,436 | ||||||||
Average interest rate during the period | 0 | % | 0 | % | ||||||||
Interest rate at period end | N/A | -1 | N/A | -1 | ||||||||
Maximum month-end balance | $ | — | $ | 35,000 | ||||||||
(1) Federal funds purchased, FHLB overnight repurchase agreements and the holding company line of credit did not have oustanding balances at September 30, 2014. | ||||||||||||
Securities sold under agreements to repurchase are typically held by an independent third party when they are for retail customers (short-term borrowings) and are delivered to the counterparty when they are wholesale borrowings with brokerage firms (long-term debt). At maturity, the securities underlying the agreements are returned to the banks. Securities sold under agreements to repurchase are secured by mortgage-backed securities and bonds with a carrying value of $423.1 million at September 30, 2014. | ||||||||||||
Our subsidiary banks are members of the FHLB, which provides short- and long-term funding collateralized by mortgage-related assets to its members. Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. At September 30, 2014, FHLB advances were collateralized by $1.7 billion of commercial and mortgage loans, with $1.1 billion in the form of a blanket lien arrangement and $541.5 million under specific lien arrangements. Based on this collateral, the Company is eligible to borrow up to an additional $1.0 billion at September 30, 2014. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
INCOME TAXES | ' | |||||||||||||||||||||
INCOME TAXES | ' | |||||||||||||||||||||
14. INCOME TAXES | ||||||||||||||||||||||
The current and deferred components of the provision for income taxes were as follows: | ||||||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Current income tax expense (benefit) | ||||||||||||||||||||||
Federal | $ | 11,344 | $ | 4,409 | $ | (4,680 | ) | $ | 3,168 | |||||||||||||
State | 32 | 40 | (384 | ) | (614 | ) | ||||||||||||||||
Total current income tax expense (benefit) | 11,376 | 4,449 | (5,064 | ) | 2,554 | |||||||||||||||||
Deferred income tax expense (benefit) | ||||||||||||||||||||||
Federal | (2,215 | ) | (2,390 | ) | 17,313 | 3,153 | ||||||||||||||||
State | 743 | (110 | ) | 1,880 | 935 | |||||||||||||||||
Total deferred income tax expense (benefit) | (1,472 | ) | (2,500 | ) | 19,193 | 4,088 | ||||||||||||||||
Change in valuation allowance | — | (6,006 | ) | (10,127 | ) | (6,006 | ) | |||||||||||||||
Income tax provision (benefit) | $ | 9,904 | $ | (4,057 | ) | $ | 4,002 | $ | 636 | |||||||||||||
Provision for income taxes is computed by applying an estimated annual effective tax rate, based on a forecast of annual income from continuing operations, to year-to-date pre-tax income from continuing operations, and then adjusting for any additional tax effects required to be recorded discretely in the quarter to which they relate. | ||||||||||||||||||||||
A reconciliation of expected income tax expense (benefit) at the federal statutory rate to the Company’s provision for income taxes and effective tax rate follows. | ||||||||||||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||
Tax based on federal statutory rate | $ | 10,297 | 35 | % | $ | 2,270 | 35 | % | $ | 28,823 | 35 | % | $ | 30,324 | 35 | % | ||||||
Effect of: | ||||||||||||||||||||||
Tax exempt income | (521 | ) | (1.8 | ) | (405 | ) | (6.3 | ) | (1,723 | ) | (2.1 | ) | (1,284 | ) | (1.5 | ) | ||||||
State taxes, net of federal benefit | 666 | 2.3 | (46 | ) | (0.7 | ) | 1,135 | 1.4 | 208 | 0.2 | ||||||||||||
Change in valuation allowance | — | — | (6,006 | ) | (92.6 | ) | (10,127 | ) | (12.3 | ) | (6,006 | ) | (6.9 | ) | ||||||||
Bargain purchase gain | — | — | — | — | (14,692 | ) | (17.8 | ) | (25,096 | ) | (29.0 | ) | ||||||||||
Transaction costs | — | — | — | — | 454 | 0.5 | 2,581 | 3 | ||||||||||||||
Other, net | (538 | ) | (1.8 | ) | 130 | 2.1 | 132 | 0.2 | (91 | ) | (0.1 | ) | ||||||||||
Income tax expense (benefit) | $ | 9,904 | 33.7 | % | $ | (4,057 | ) | (62.5 | )% | $ | 4,002 | 4.9 | % | $ | 636 | 0.7 | % | |||||
The significant components of the deferred tax assets and liabilities at September 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||
Allowance for loan losses | $ | 50,512 | $ | 51,527 | ||||||||||||||||||
Other real estate losses | 6,797 | 3,702 | ||||||||||||||||||||
Organizational costs | 282 | 311 | ||||||||||||||||||||
Accrued stock-based compensation | 5,764 | 5,926 | ||||||||||||||||||||
Accrued expenses | 478 | — | ||||||||||||||||||||
Loss and tax credit carry forwards | 32,345 | 19,298 | ||||||||||||||||||||
Other reserves | 2,076 | 1,988 | ||||||||||||||||||||
Goodwill and other intangibles | 1,348 | 1,494 | ||||||||||||||||||||
Nonaccrual interest | 10,389 | 10,150 | ||||||||||||||||||||
Business combination adjustments | 60,940 | 41,742 | ||||||||||||||||||||
Net unrealized loss on available for sale securities | — | 4,306 | ||||||||||||||||||||
Other | 543 | — | ||||||||||||||||||||
Total deferred tax assets | 171,474 | 140,444 | ||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||
Depreciation | 2,154 | 3,996 | ||||||||||||||||||||
FHLB stock dividends | 260 | 1,541 | ||||||||||||||||||||
Deferred loan fees | 484 | 1,229 | ||||||||||||||||||||
Prepaid expenses | — | 799 | ||||||||||||||||||||
Net unrealized gain on available for sale securities | 1,124 | — | ||||||||||||||||||||
Loan servicing rights | 26,392 | 27,334 | ||||||||||||||||||||
Other | — | 247 | ||||||||||||||||||||
Total deferred tax liabilities | 30,414 | 35,146 | ||||||||||||||||||||
Net deferred tax asset before valuation allowance | 141,060 | 105,298 | ||||||||||||||||||||
Valuation allowance | — | (10,127 | ) | |||||||||||||||||||
Net deferred tax asset | $ | 141,060 | $ | 95,171 | ||||||||||||||||||
On January 1, 2014, the Company acquired Talmer West Bank and recorded $60.4 million in deferred tax assets at acquisition. Upon acquisition, Talmer West Bank incurred an ownership change within the meaning of Section 382 of the Internal Revenue Code. As such, the Company’s ability to benefit from the use of Talmer West Bank’s pre-ownership change net operating loss carry forwards, as well as the deductibility of certain of its built-in losses if realized during a five-year recognition period (one year with respect to bad debt deductions), will be limited to approximately $3.0 million per year, putting at risk the utilization of associated deferred tax assets before they expire. No valuation allowance was established against the deferred tax assets associated with Talmer West Bank’s pre-change losses based on management’s estimate of the amount and timing of built-in losses more likely than not to be realized over the Section 382 recognition period, and the impact on the Company’s utilization of pre-ownership change net operating loss carry forwards. In determining its estimate of built-in losses more likely than not to be realized within the Section 382 recognition period, management focused primarily on tax losses embedded in Talmer West Bank’s loan portfolio and other real estate owned. To a lesser extent management focused on tax losses embedded in fixed assets, investments in partnerships and certain accrued expenses, and anticipated when these losses might create actual tax deductions, either through bad debt deductions, depreciation, amortization, payment, or disposition of the assets in question. | ||||||||||||||||||||||
At January 1, 2014, Talmer West Bank had an estimated $28.7 million in gross federal loss carry forwards expiring in 2032 and 2033. The exact amount of pre-ownership change carry forwards cannot be determined until the finalization of Capitol Bancorp, Ltd.’s consolidated tax return (Talmer West Bank’s former parent) for the year ended December 31, 2014, at which time final allocations will be made from that return to the entity acquired by the Company. | ||||||||||||||||||||||
The valuation allowance of $10.1 million against the Company’s deferred tax asset at December 31, 2013 was related to Section 382 ownership changes incurred by First Place Bank, upon its acquisition by the Company on January 1, 2013. The allowance was based on management’s calculation of the annual Section 382 limitation and its estimate of the amount and timing of built-in losses more likely than not to be realized over the Section 382 recognition period, and the impact on the Company’s utilization of pre-ownership change operating loss and tax credit carry forwards. | ||||||||||||||||||||||
At December 31, 2013, the Company, including First Place Bank and its related acquired affiliates, had the following loss and tax credit carry forwards: $28.8 million in gross federal loss carry forwards, $856 thousand in tax credits expiring between 2027 and 2032, and $3.8 million in federal alternative minimum tax credits with an indefinite life. At December 31, 2013, the Company estimated the use of $24.8 million in estimated gross federal loss carry forwards and $856 thousand in tax credits related to First Place Bank and its acquired affiliates, expiring between 2027 and 2032 would be limited to $1.7 million annually due to an ownership change, within the meaning of Section 382 incurred at January 1, 2013. In the second quarter of 2014, the Company, with the assistance of a legal and tax accounting external experts, reached a conclusion regarding the calculation of the annual Section 382 limitation related to the ownership change of First Place Bank which resulted in an increase of the annual Section 382 limitation from $1.7 million to $6.6 million. This increase eliminated the need for a valuation allowance on the deferred tax assets acquired in the First Place Bank acquisition. | ||||||||||||||||||||||
The use of $3.7 million of gross federal loss carry forwards, expiring between 2027 and 2029, is limited to $145 thousand annually due to a Section 382 ownership change incurred in November 2009. The carrying value was previously reduced to reflect that $1.4 million will expire unused. Upon the completion of the Company’s 2010 Internal Revenue Service (“IRS”) audit, it was determined that there was an additional $323 thousand of net operating losses available from its Lakeshore acquisition, expiring in 2030. | ||||||||||||||||||||||
Outside of the Section 382-limited deferred tax assets acquired in both the Talmer West Bank and First Place Bank acquisitions, management concluded that no valuation allowance was necessary on the remainder of the Company’s net deferred tax assets at either September 30, 2014 or December 31, 2013. This determination was based on the Company’s history of pre-tax and taxable income over the prior three years, as well as management’s expectations for sustainable profitability in the future. Management monitors deferred tax assets quarterly for changes affecting realizability and the valuation allowance could be adjusted in future periods. | ||||||||||||||||||||||
Actual outcomes could vary from the Company’s current estimates, resulting in future increases or decreases in the valuation allowance and corresponding future tax expense or benefit. | ||||||||||||||||||||||
At September 30, 2014, Talmer Bank and Trust had approximately $36.0 million of bad debt reserve in equity for which no provision for federal income taxes was recorded. This amount represents First Place Bank’s qualifying thrift bad debt reserve at December 31, 1987, which is only required to be recaptured into taxable income if certain events occur. At September 30, 2014, the potential tax on the above amount was approximately $13.0 million. The Company does not intend to take any action that would result in a recapture of any portion of its bad debt reserve. | ||||||||||||||||||||||
In the ordinary course of business, the Company enters into certain transactions that have tax consequences. From time to time, the IRS and state taxing authorities may review and/or challenge specific interpretive tax positions taken by the Company with respect to those transactions. The Company believes that its tax returns, as well as First Place Bank and Talmer West Bank’s tax returns for periods prior to the acquisitions, were filed based upon applicable statutes, regulations and case law in effect at the time of the transactions. The IRS, various state and other jurisdictions, if presented with the transactions, could disagree with the Company’s interpretation of the tax law. | ||||||||||||||||||||||
First Place Bank had received notice that the IRS had denied refund claims in amended tax returns filed by First Place Bank on a consolidated basis with its former parent company, First Place Financial Corp., for fiscal years ended June 30, 2009, 2008, 2007, 2006 and 2005. The Company disagrees with the IRS position and is working with First Place Financial Corp. to appeal the examination-level decision. Though not anticipated, an adverse result on appeal could impact the $11.7 million refund receivable recorded by the Company upon acquisition of First Place Bank. In the second quarter of 2014, the IRS commenced an examination of the consolidated federal tax returns of First Place Bank’s former parent for the fiscal years ended June 30, 2013, 2012, 2011, which returns included First Place Bank through January 1, 2013. The results of this examination concluded with no changes. First Place Bank’s federal tax return for the fiscal year ended June 30, 2010 is currently subject to potential examination as well. There are several years of returns that are still open to examination by various taxing authorities for Talmer West Bank. | ||||||||||||||||||||||
During the first quarter 2014, the Company closed an examination by the IRS of Talmer Bancorp, Inc. and subsidiaries’ federal returns for the years ended December 31, 2011 and 2010, with no significant tax changes. The Company’s federal tax return for the years ended December 31, 2012 to present are open to potential examination. The Company’s most significant states of operation, Michigan and Ohio, do not impose income-based taxes on financial institutions. The Company and/or its subsidiaries are subject to minor amounts of income tax in various other states, with varying years open to potential examination. The Company is not aware of any pending income tax examinations by any state jurisdiction. | ||||||||||||||||||||||
The Company had no unrecognized tax benefits at September 30, 2014 or 2013 and does not expect to record unrecognized tax benefits of any significance during the next twelve months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense, when applicable. There are no liabilities accrued for interest or penalties at September 30, 2014 or 2013. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||
15. STOCK-BASED COMPENSATION | |||||||||||
The Company’s 2009 Equity Incentive Plan (the “Plan”), along with amendments made to the Plan, limits the number of shares issued or issuable to employees, directors and certain consultants at 9.8 million shares of common stock. | |||||||||||
Stock Options | |||||||||||
Options are granted with an exercise price equal to or greater than the fair market price of the Company’s common stock at the date of grant. The vesting and terms of option awards are determined by the Company’s Compensation Committee of the Board of Directors. During the nine months ended September 30, 2014 and 2013, the Company granted 35 thousand and 3.6 million stock options, respectively, that were fully vested upon issuance and will expire 10 years after the grant date. As of September 30, 2014, 1.6 million option shares were available to be granted. | |||||||||||
The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the table below. Given the relatively short history of Company stock being publicly traded during the nine months ended September 30, 2014, post our public offering in February of 2014, and minimal trading in the Company’s stock during the nine months ended September 30, 2013, it was not practicable for the Company to estimate volatility of its share price. For the nine months ended September 30, 2014 the Company used the average volatility of comparable public Bank holding companies as an input to the valuation model. For the nine months ended September 30, 2013 the Company used the volatility of an appropriate industry index (the ABA NASDAQ Community Bank Index) as an input in the valuation model. Since limited historical data is available, the expected term of options granted was estimated to be six years for both the nine months ended September 30, 2014 and 2013 based on expected lives used by a sample of other Midwest banks. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of the grant corresponding with the expected life of the options. All shares granted are expected to vest and the Company intends to issue already authorized shares to satisfy options upon exercise. | |||||||||||
The fair value of options granted during the nine months ended September 30, 2014 and 2013 were determined using the following weighted-average assumptions as of the grant date. | |||||||||||
For the nine months ended September 30, | |||||||||||
2014 | 2013 | ||||||||||
Fair value of options granted | $ | 4.77 | $ | 2.13 | |||||||
Expected volatility | 30.02 | % | 24.37 | % | |||||||
Risk-free interest rate | 1.98 | % | 0.97 | % | |||||||
Expected life (in years) | 6 | 6 | |||||||||
Activity in the Plan during the nine months ended September 30, 2014 is summarized below: | |||||||||||
Weighted Average | |||||||||||
Number | Exercise | Remaining | Aggregate | ||||||||
of Shares | Price per | Contractual Life | Intrinsic Value | ||||||||
(in thousands) | Share | (in years) | (in thousands) | ||||||||
Outstanding at January 1, 2014 | 8,441 | $ | 6.88 | ||||||||
Granted | 35 | 14.44 | |||||||||
Exercised (1) | (453 | ) | 5.92 | ||||||||
Forfeited or expired | (2 | ) | 7.25 | ||||||||
Outstanding at September 30, 2014 | 8,021 | 6.96 | 6.96 | 55,107 | |||||||
Options fully vested and expected to vest | 8,021 | 6.96 | 6.96 | 55,107 | |||||||
Exercisable at September 30, 2014 | 7,950 | 6.96 | 6.96 | 54,619 | |||||||
(1) Options exercised during the nine months ended September 30, 2014 had a weighted average fair value of $13.74, at respective exercise dates. In the nine months ended September 30, 2014, there were 163 thousand shares issued under the net-settlement option. Total cash received from option exercises during the nine months ended September 30, 2014 was $143 thousand resulting in the issuance of 25 thousand shares. | |||||||||||
The total intrinsic value of stock options exercised was $3.5 million for the nine months ended September 30, 2014. There were no option exercises during the nine months ended September 30, 2013. | |||||||||||
Total compensation expense for stock options, included in “Salary and employee benefits” in the Consolidated Statements of Income, was $42 thousand and $245 thousand for the three months ended September 30, 2014 and 2013, respectively, and $429 thousand and $9.3 million for the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||
A summary of changes in the Company’s nonvested shares for the nine months ended September 30, 2014 follows: | |||||||||||
Nonvested Shares | Shares | Weighted-Average | |||||||||
(in thousands) | Grant-Date Fair Value | ||||||||||
Nonvested at January 1, 2014 | 348 | $ | 2.24 | ||||||||
Granted | 35 | ||||||||||
Vested | 310 | ||||||||||
Forfeited | 2 | ||||||||||
Nonvested at September 30, 2014 | 71 | $ | 2.21 | ||||||||
As of September 30, 2014, there was $32 thousand of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized during the year ended December 31, 2014. | |||||||||||
Restricted Stock Awards | |||||||||||
Under the Plan, the Company can grant restricted stock awards that vest upon completion of future service requirements or specified performance criteria. The fair value of these awards is equal to the market price of the common stock at the date of grant. The Company recognizes stock-based compensation expense for these awards over the vesting period, using the straight-line method, based upon the number of shares of restricted stock ultimately expected to vest. Restricted stock awards granted in June of 2014 vest in their entirety following a five year service period for employees and over a one year service period for directors. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If an individual awarded restricted stock awards terminates employment prior to the end of the vesting period, the unvested portion of the stock award is forfeited. | |||||||||||
The following table provides information regarding nonvested restricted stock awards: | |||||||||||
Nonvested Restricted Stock Awards | Shares | Weighted-Average | |||||||||
(in thousands) | Grant-Date Fair Value | ||||||||||
Nonvested at January 1, 2014 | — | ||||||||||
Granted | 377,800 | 14.44 | |||||||||
Nonvested at September 30, 2014 | 377,800 | $ | 14.44 | ||||||||
Total expense for restricted stock awards totaled $302 thousand for the three months of September 30, 2014, of which $227 thousand was included in “Salary and employee benefits” related to employees and $75 thousand was included in “Professional fees” related to directors in the Consolidated Statements of Income. For the nine months ended September 30, 2014, total expense for restricted stock awards totaled $369 thousand, of which $277 thousand was included in “Salary and employee benefits” related to employees and $92 thousand was included in “Professional fees” related to directors in the Consolidated Statements of Income. There were no restricted stock awards outstanding prior to June of 2014. As of September 30, 2014, the total compensation costs related to nonvested restricted stock that has not yet been recognized totaled $5.1 million and the weighted-average period over which these costs are expected to be recognized is 4.5 years. |
REGULATORY_CAPITAL_MATTERS
REGULATORY CAPITAL MATTERS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
REGULATORY CAPITAL MATTERS | ' | ||||||||||||||||
REGULATORY CAPITAL MATTERS | ' | ||||||||||||||||
16. REGULATORY CAPITAL MATTERS | |||||||||||||||||
Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of September 30, 2014, the Company and its subsidiary banks met all capital adequacy requirements to which they are subject. | |||||||||||||||||
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. | |||||||||||||||||
Talmer Bank and Trust was required to maintain Tier 1 common equity to total assets ratio of at least 10% under the FDIC’s Statement of Policy on Qualifications for Failed Bank Acquisitions for a period of three years following the Company’s most recent failed bank acquisition, and thereafter must maintain a capital level sufficient to be well capitalized under regulatory standards during the remaining period of ownership of the investors covered by the FDIC’s Statement of Policy. Talmer Bank and Trust’s last failed bank acquisition closed on April 29, 2011 and, therefore, remained subject to the heightened capital requirement through April 29, 2014. At September 30, 2014 and December 31, 2013, the most recent regulatory notifications categorized Talmer Bank and Trust 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 institution’s category. | |||||||||||||||||
The capital ratios of Talmer West Bank at September 30, 2014 exceed the total capital (to risk-weighted assets) ratio of at least 12.0% and a Tier 1 capital (to adjusted total assets) ratio of at least 9.0% as prescribed in the Consent Order by the FDIC and the Michigan Department of Insurance and Financial Services on April 5, 2010. Notwithstanding its capital levels, Talmer West Bank will not be categorized as well capitalized while it is subject to the Consent Order. | |||||||||||||||||
Consent Order | |||||||||||||||||
On April 5, 2010, Michigan Commerce Bank consented to the issuance of the Consent Order by the FDIC and the Michigan Department of Insurance and Financial Services, which remains in effect following our acquisition of Talmer West Bank, as the surviving bank in the merger, on January 1, 2014. The Consent Order represents an agreement to take certain actions, including, among other things: assessing and retaining qualified management; achieving and maintaining specified capital ratios; reducing certain classified assets, including the charge-off of loans classified ‘‘loss;’’ reviewing the allowance for loan and lease losses policy; implementing a comprehensive profit plan and budget; implementing a plan to manage concentrations of credit; and revising the bank’s policies governing interest rate risk. | |||||||||||||||||
The Consent Order also prohibits Talmer West Bank, without prior regulatory approval, from paying dividends, retaining new directors or senior executive officers, or entering into any material transaction. | |||||||||||||||||
Cease and Desist Order | |||||||||||||||||
On July 13, 2011, First Place Bank consented to a Cease and Desist Order which replaced the separate supervisory agreement entered into with the OTS on March 1, 2011. The Cease and Desist Order represents an agreement to take certain actions, including the submission of capital and business plans to, among other things, preserve and enhance the capital of First Place Bank and strengthen and improve its earnings and profitability. On January 28, 2014, the FDIC approved the consolidation of First Place Bank with and into Talmer Bank and Trust. Effective February 10, 2014, First Place Bank was merged with Talmer Bank and Trust and the Cease and Desist Order has no further force or effect. | |||||||||||||||||
The following is a summary of actual and required capital amounts and ratios: | |||||||||||||||||
Actual | For Capital | To Be Well | |||||||||||||||
Adequacy | Capitalized Under | ||||||||||||||||
Purposes | Prompt Corrective | ||||||||||||||||
Action Provisions | |||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
September 30, 2014 | |||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | $ | 695,380 | 16.8 | % | $ | 331,998 | 8 | % | N/A | N/A | |||||||
Talmer Bank and Trust | 602,480 | 16.7 | 289,526 | 8 | $ | 361,907 | 10 | % | |||||||||
Talmer West Bank (1) | 97,123 | 18.5 | 41,930 | 8 | N/A | N/A | |||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 645,796 | 15.6 | 165,999 | 4 | N/A | N/A | |||||||||||
Talmer Bank and Trust | 557,105 | 15.4 | 144,763 | 4 | 217,144 | 6 | |||||||||||
Talmer West Bank (1) | 92,949 | 17.7 | 20,965 | 4 | N/A | N/A | |||||||||||
Tier 1 leverage ratio | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 645,796 | 11.5 | 225,513 | 4 | N/A | N/A | |||||||||||
Talmer Bank and Trust | 557,105 | 11.5 | 193,575 | 4 | 241,969 | 5 | |||||||||||
Talmer West Bank (1) | 92,949 | 11.6 | 32,116 | 4 | N/A | N/A | |||||||||||
December 31, 2013 | |||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | $ | 583,370 | 19.2 | % | $ | 242,885 | 8 | % | N/A | N/A | |||||||
Talmer Bank and Trust | 253,044 | 18.4 | 110,123 | 8 | $ | 137,654 | 10 | % | |||||||||
First Place Bank (2) | 263,297 | 15.9 | 132,207 | 8 | N/A | N/A | |||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 555,350 | 18.3 | 121,443 | 4 | N/A | N/A | |||||||||||
Talmer Bank and Trust | 235,448 | 17.1 | 55,062 | 4 | 82,593 | 6 | |||||||||||
First Place Bank (2) | 252,873 | 15.3 | 66,104 | 4 | N/A | N/A | |||||||||||
Tier 1 leverage ratio | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 555,350 | 12.2 | 182,221 | 4 | N/A | N/A | |||||||||||
Talmer Bank and Trust | 235,448 | 10.3 | 91,363 | 4 | 114,204 | 5 | |||||||||||
First Place Bank (2) | 252,873 | 11.7 | 86,521 | 4 | N/A | N/A | |||||||||||
(1) Notwithstanding its capital levels, Talmer West Bank will not be categorized as well capitalized while it is subject to the Consent Order. | |||||||||||||||||
(2) Notwithstanding its capital levels, First Place Bank was not categorized as well capitalized while it was subject to the Cease and Desist Order. On February 10, 2014, First Place Bank was merged with and into Talmer Bank and Trust and the Cease and Desist Order had no further force or effect. | |||||||||||||||||
The Company’s principal source of funds for dividend payments is dividends received from its subsidiary banks. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Talmer Bank and Trust cannot declare or pay a cash dividend or dividend in kind unless Talmer Bank and Trust will have a surplus amounting to not less than 20% of its capital after payment of the dividend. In addition, Talmer Bank and Trust may pay dividends only out of net income then on hand, after deducting its losses and bad debts. Further, Talmer Bank and Trust may not declare or pay a dividend until cumulative dividends on preferred stock, if any, are paid in full. These limitations can affect Talmer Bank and Trust’s ability to pay dividends. | |||||||||||||||||
Under FDIC regulations, limitations are imposed on all of Talmer West Bank’s capital distributions, including cash dividends. As of September 30, 2014, Talmer West Bank was not able to pay any dividends without prior regulatory approval. | |||||||||||||||||
On November 4, 2014, a cash dividend on the Company’s Class A common stock of $0.01 per share was declared. The dividend will be paid on November 28, 2014, to the Company’s Class A common shareholders of record as of November 17, 2014. |
PARENT_COMPANY_FINANCIAL_STATE
PARENT COMPANY FINANCIAL STATEMENTS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
PARENT COMPANY FINANCIAL STATEMENTS | ' | |||||||||||||
PARENT COMPANY FINANCIAL STATEMENTS | ' | |||||||||||||
17. PARENT COMPANY FINANCIAL STATEMENTS | ||||||||||||||
Balance Sheets - Parent Co. | ||||||||||||||
September 30, | December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 11,414 | $ | 98,411 | ||||||||||
Investment in banking subsidiaries | 741,496 | 562,381 | ||||||||||||
Income tax benefit | 5,393 | 5,404 | ||||||||||||
Other assets | 1,232 | 1,783 | ||||||||||||
Total assets | $ | 759,535 | $ | 667,979 | ||||||||||
Liabilities | ||||||||||||||
Short-term borrowings | $ | — | $ | 35,000 | ||||||||||
Long-term debt | 10,690 | 10,590 | ||||||||||||
Accrued expenses and other liabilities | 2,193 | 5,374 | ||||||||||||
Total liabilities | 12,883 | 50,964 | ||||||||||||
Shareholders’ equity | 746,652 | 617,015 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 759,535 | $ | 667,979 | ||||||||||
Statements of Income and Comprehensive Income - Parent Co. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Income | ||||||||||||||
Dividend income from subsidiary | $ | — | $ | — | $ | 25,000 | $ | 55,000 | ||||||
Bargain purchase gain | — | — | 41,977 | 71,702 | ||||||||||
Other noninterest income | 3 | 3 | 8 | 10 | ||||||||||
Total income | 3 | 3 | 66,985 | 126,712 | ||||||||||
Expenses | ||||||||||||||
Salaries and employee benefits | 1,040 | 73 | 6,995 | 18,433 | ||||||||||
Bank acquisition and due diligence fees | 238 | 111 | 2,212 | 7,702 | ||||||||||
Professional services | 455 | 241 | 1,541 | 1,175 | ||||||||||
Marketing expense | 31 | 3 | 222 | 1,027 | ||||||||||
Interest on long-term debt | 128 | 128 | 380 | 424 | ||||||||||
Other | 250 | 105 | 765 | 343 | ||||||||||
Total expenses | 2,142 | 661 | 12,266 | 29,104 | ||||||||||
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries | (2,139 | ) | (658 | ) | 54,719 | 97,608 | ||||||||
Income tax benefit | 533 | 202 | 2,990 | 7,570 | ||||||||||
Equity in (over)/under distributed earnings of subsidiaries | 21,121 | 11,000 | 20,639 | (19,173 | ) | |||||||||
Net income | $ | 19,515 | $ | 10,544 | $ | 78,348 | $ | 86,005 | ||||||
Total comprehensive income, net of tax | $ | 19,515 | $ | 10,544 | $ | 78,348 | $ | 86,005 | ||||||
Statements of Cash Flows - Parent Co. | ||||||||||||||
For the nine months ended September 30, | ||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 78,348 | $ | 86,005 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Equity in (over)/under distributed earnings of subsidiaries | (45,639 | ) | (35,827 | ) | ||||||||||
Gain on acquisition | (41,977 | ) | (71,702 | ) | ||||||||||
Stock-based compensation expense | 382 | 8,314 | ||||||||||||
Decrease in income tax benefit | 11 | 2,331 | ||||||||||||
Decrease in other assets, net | 551 | 9,934 | ||||||||||||
Increase (decrease) in accrued expenses and other liabilities, net | (3,081 | ) | 2,617 | |||||||||||
Net cash from (used in) operating activities | (11,405 | ) | 1,672 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Cash (used in) proceeds from acquisitions | (6,500 | ) | (45,000 | ) | ||||||||||
Capital contributions to subsidiaries | (99,500 | ) | (179,000 | ) | ||||||||||
Dividends received from subsidiaries | 25,000 | 55,000 | ||||||||||||
Net cash used in investing activities | (81,000 | ) | (169,000 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||
Issuance of common stock | 41,112 | — | ||||||||||||
Repayment of senior unsecured line of credit | (35,000 | ) | — | |||||||||||
Cash dividends paid on common stock ($.01 per share) | (704 | ) | — | |||||||||||
Net cash from financing activities | 5,408 | — | ||||||||||||
Net decrease in cash and cash equivalents | (86,997 | ) | (167,328 | ) | ||||||||||
Beginning cash and cash equivalents | 98,411 | 211,849 | ||||||||||||
Ending cash and cash equivalents | $ | 11,414 | $ | 44,521 |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||
18. EARNINGS PER COMMON SHARE | ||||||||||||||
The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participating rights in undistributed earnings. Common shares outstanding include common stock and vested restricted stock awards, when applicable. On June 10, 2014 the Company awarded restricted stock to certain employees and directors of the Company which qualify as participating securities. The factors used in the earnings per share computation follow: | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Net income | $ | 19,515 | $ | 10,544 | $ | 78,348 | $ | 86,005 | ||||||
Net income allocated to participating securities | 105 | — | 178 | — | ||||||||||
Net income allocated to common shareholders (1) | $ | 19,410 | $ | 10,544 | $ | 78,170 | $ | 86,005 | ||||||
Weighted average common shares - issued | 70,470 | 66,229 | 69,570 | 66,229 | ||||||||||
Average unvested restricted share awards | (378 | ) | — | (156 | ) | — | ||||||||
Weighted average common shares outstanding - basic | 70,092 | 66,229 | 69,414 | 66,229 | ||||||||||
Effect of dilutive securities - | ||||||||||||||
Employee and director stock options | 4,102 | 2,637 | 4,034 | 2,576 | ||||||||||
Warrants | 1,558 | 987 | 1,500 | 987 | ||||||||||
Weighted average common shares outstanding - diluted | 75,752 | 69,853 | 74,948 | 69,792 | ||||||||||
EPS available to common shareholders | ||||||||||||||
Basic | $ | 0.28 | $ | 0.16 | $ | 1.13 | $ | 1.3 | ||||||
Diluted | $ | 0.26 | $ | 0.15 | $ | 1.04 | $ | 1.23 | ||||||
(1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options and warrants to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share. | ||||||||||||||
For the effect of dilutive securities, the average stock valuation is $14.08 per share and assumed to be $10.00 per share for the three months ended September 30, 2014 and 2013, respectively, and the assumed average stock valuation is $13.52 per share and $10.00 per share for the nine months ended September 30, 2014 and 2013 respectively. | ||||||||||||||
The following average shares related to outstanding options and warrants to purchase shares of common stock were not included in the computation of diluted net income available to common shareholders for the three and nine months ended September 30, 2014 and 2013 respectively, because they were antidilutive. There were no outstanding antidilutive warrants during the three and nine months ended September 30, 2014. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Shares in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Average outstanding options | 35 | 75 | 14 | 29 | ||||||||||
Outstanding exercise prices: | ||||||||||||||
Low end | $ | 14.44 | $ | 10 | $ | 14.44 | $ | 10 | ||||||
High end | $ | 14.44 | $ | 10 | $ | 14.44 | $ | 10 | ||||||
Average outstanding warrants | — | 39 | — | 39 | ||||||||||
Outstanding exercise prices: | ||||||||||||||
Low end | $ | 10 | $ | 10 | ||||||||||
High end | $ | 10 | $ | 10 |
BUSINESS_COMBINATIONS_Tables
BUSINESS COMBINATIONS (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
BUSINESS COMBINATIONS | ' | |||||||
Schedule of unaudited pro forma financial information presented in the consolidated results of operations of the Company and Talmer West Bank as if the acquisition had occurred as of January 1, 2013 | ' | |||||||
For the three months ended September 30, | ||||||||
(Dollars in thousands) | 2014 (1) | 2013 | ||||||
Net Interest and other income | $ | 82,191 | $ | 71,588 | ||||
Net Income | 19,515 | 10,719 | ||||||
Earnings per common share: | ||||||||
Basic | $ | 0.28 | $ | 0.16 | ||||
Diluted | 0.26 | 0.15 | ||||||
(1) As the business combination was effective January 1, 2014, there were no proforma adjustments for the three months ended September 30, 2014. | ||||||||
For the nine months ended September 30, | ||||||||
(Dollars in thousands) | 2014 (1) | 2013 | ||||||
Net Interest and other income | $ | 254,465 | $ | 319,968 | ||||
Net Income | 78,348 | 95,168 | ||||||
Earnings per common share: | ||||||||
Basic | $ | 1.13 | $ | 1.44 | ||||
Diluted | 1.04 | 1.36 | ||||||
(1) As the business combination was effective January 1, 2014, there were no proforma adjustments for the nine months ended September 30, 2014. | ||||||||
Talmer West Bank | ' | |||||||
BUSINESS COMBINATIONS | ' | |||||||
Summary of the assets and liabilities purchased in acquisition recorded at fair value | ' | |||||||
(Dollars in thousands) | ||||||||
Consideration paid: | ||||||||
Cash | $ | 6,500 | ||||||
Fair value of identifiable assets acquired: | ||||||||
Cash and cash equivalents | 216,331 | |||||||
Investment securities | 13,619 | |||||||
Federal Home Loan Bank stock | 5,933 | |||||||
Loans | 571,666 | |||||||
Premises and equipment | 4,912 | |||||||
Loan servicing rights | 767 | |||||||
Other real estate owned | 30,878 | |||||||
Core deposit intangible | 3,633 | |||||||
Other assets | 62,542 | |||||||
Total identifiable assets acquired | 910,281 | |||||||
Fair value of liabilities assumed: | ||||||||
Deposits | 857,769 | |||||||
Other liabilities | 4,035 | |||||||
Total liabilities assumed | 861,804 | |||||||
Fair value of net identifiable assets acquired | 48,477 | |||||||
Bargain purchase gain resulting from acquisition | $ | 41,977 | ||||||
Schedule of information regarding acquired loans accounted for under ASC 310-30 as well as excluded from ASC 310-30 accounting at acquisition date | ' | |||||||
(Dollars in thousands) | ||||||||
Accounted for under ASC 310-30: | ||||||||
Contractual cash flows | $ | 331,523 | ||||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 86,410 | |||||||
Expected cash flows | 245,113 | |||||||
Interest component of expected cash flows (accretable yield) | 32,764 | |||||||
Fair value at acquisition | $ | 212,349 | ||||||
Excluded from ASC 310-30 accounting: | ||||||||
Unpaid principal balance | $ | 362,782 | ||||||
Fair value discount | (3,465 | ) | ||||||
Fair value at acquisition | 359,317 | |||||||
Total fair value at acquisition | $ | 571,666 | ||||||
First Place Bank | ' | |||||||
BUSINESS COMBINATIONS | ' | |||||||
Summary of the assets and liabilities purchased in acquisition recorded at fair value | ' | |||||||
(Dollars in thousands) | ||||||||
Consideration paid: | ||||||||
Cash | $ | 45,000 | ||||||
Fair Value of identifiable assets acquired: | ||||||||
Cash and cash equivalents | 439,805 | |||||||
Investment securities | 139,764 | |||||||
Federal Home Loan Bank stock | 12,993 | |||||||
Loans held-for-sale | 213,946 | |||||||
Loans | 1,530,376 | |||||||
Premises and equipment | 22,168 | |||||||
Loan servicing rights | 41,967 | |||||||
Company-owned life insurance | 38,172 | |||||||
Other real estate owned | 18,448 | |||||||
Core deposit intangible | 9,816 | |||||||
Other assets | 128,278 | |||||||
Total identifiable assets acquired | 2,595,733 | |||||||
Fair value of liabilities assumed: | ||||||||
Deposits | 2,121,258 | |||||||
Short-term borrowings | 21,892 | |||||||
Long-term debt | 312,956 | |||||||
Other liabilities | 22,925 | |||||||
Total liabilities assumed | 2,479,031 | |||||||
Fair value of net identifiable assets acquired | 116,702 | |||||||
Bargain purchase gain resulting from acquisition | $ | 71,702 | ||||||
Schedule of information regarding acquired loans accounted for under ASC 310-30 as well as excluded from ASC 310-30 accounting at acquisition date | ' | |||||||
(Dollars in thousands) | ||||||||
Accounted for under ASC 310-30: | ||||||||
Contractual cash flows | $ | 738,639 | ||||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 150,008 | |||||||
Expected cash flows | 588,631 | |||||||
Interest component of expected cash flows (accretable yield) | 158,221 | |||||||
Fair value at acquisition | $ | 430,410 | ||||||
Excluded from ASC 310-30 accounting: | ||||||||
Unpaid principal balance | $ | 1,094,223 | ||||||
Fair value premium | 5,743 | |||||||
Fair value at acquisition | 1,099,966 | |||||||
Total fair value at acquisition | $ | 1,530,376 |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||
Schedule of the recorded amount of assets and liabilities measured at fair value, including financial assets and liabilities for which the Company has elected the fair value option, on a recurring basis | ' | ||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
September 30, 2014 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
U.S. government sponsored agency obligations | $ | 105,690 | $ | — | $ | 105,690 | $ | — | |||||||||
Obligations of state and political subdivisions: | |||||||||||||||||
Taxable | 397 | — | — | 397 | |||||||||||||
Tax-exempt | 220,530 | — | 220,530 | — | |||||||||||||
Small Business Administration (“SBA”) Pools | 35,332 | — | 35,332 | — | |||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 299,605 | — | 299,605 | — | |||||||||||||
Privately issued | 9,959 | — | 9,959 | — | |||||||||||||
Privately issued commercial mortgage-backed securities | 5,135 | — | 5,135 | — | |||||||||||||
Corporate debt securities | 57,841 | — | 57,406 | 435 | |||||||||||||
Total securities available-for-sale | 734,489 | — | 733,657 | 832 | |||||||||||||
Loans measured at fair value: | |||||||||||||||||
Residential real estate | 17,881 | — | — | 17,881 | |||||||||||||
Loans held for sale | 122,599 | — | 122,599 | — | |||||||||||||
Loan servicing rights | 74,380 | — | — | 74,380 | |||||||||||||
Derivative assets | 1,798 | — | 1,798 | — | |||||||||||||
Total assets at fair value | $ | 951,147 | $ | — | $ | 858,054 | $ | 93,093 | |||||||||
Derivative liabilities | 361 | — | 361 | — | |||||||||||||
Total liabilities at fair value | $ | 361 | $ | — | $ | 361 | $ | — | |||||||||
December 31, 2013 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
U.S. government sponsored agency obligations | $ | 98,237 | $ | — | $ | 98,237 | $ | — | |||||||||
Obligations of state and political subdivisions: | |||||||||||||||||
Taxable | 396 | — | — | 396 | |||||||||||||
Tax-exempt | 182,000 | — | 182,000 | — | |||||||||||||
Small Business Administration (“SBA”) Pools | 42,426 | — | 42,426 | — | |||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 218,922 | — | 218,922 | — | |||||||||||||
Privately issued | 4,446 | — | 4,446 | — | |||||||||||||
Privately issued commercial mortgage-backed securities | 5,147 | — | 5,147 | — | |||||||||||||
Corporate debt securities | 68,020 | — | 67,615 | 405 | |||||||||||||
Equity securities | 489 | 489 | — | — | |||||||||||||
Total securities available-for-sale | 620,083 | 489 | 618,793 | 801 | |||||||||||||
Loans measured at fair value: | |||||||||||||||||
Residential real estate | 16,334 | — | — | 16,334 | |||||||||||||
Real estate construction | 1,374 | — | — | 1,374 | |||||||||||||
Loans held for sale | 85,252 | — | 85,252 | — | |||||||||||||
Loans servicing rights | 78,603 | — | — | 78,603 | |||||||||||||
Derivative assets | 2,630 | — | 2,630 | — | |||||||||||||
Total assets at fair value | $ | 804,276 | $ | 489 | $ | 706,675 | $ | 97,112 | |||||||||
Summary of the changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||
Securities available-for-sale | |||||||||||||||||
(Dollars in thousands) | Taxable obligations of | Corporate Debt | Loans held for | Loan servicing | |||||||||||||
state and political | Securities | investment | rights | ||||||||||||||
subdivisions | |||||||||||||||||
Balance, beginning of period | $ | 397 | $ | 433 | $ | 18,521 | $ | 74,104 | |||||||||
Transfers from loans held for sale | — | — | 280 | — | |||||||||||||
Gains (losses): | |||||||||||||||||
Recorded in earnings (realized): | |||||||||||||||||
Recorded in “Interest on investments” | — | 1 | — | — | |||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | (93 | ) | (2,022 | ) | |||||||||||
Recorded in OCI (pre-tax) | — | 1 | — | — | |||||||||||||
New originations | — | — | — | 2,298 | |||||||||||||
Repayments | — | — | (827 | ) | — | ||||||||||||
Balance, end of period | $ | 397 | $ | 435 | $ | 17,881 | $ | 74,380 | |||||||||
Nine months ended September 30, 2014 | |||||||||||||||||
Securities available-for-sale | |||||||||||||||||
(Dollars in thousands) | Taxable obligations of | Corporate Debt | Loans held for | Loan servicing | |||||||||||||
state and political | Securities | investment | rights | ||||||||||||||
subdivisions | |||||||||||||||||
Balance, beginning of period | $ | 396 | $ | 405 | $ | 17,708 | $ | 78,603 | |||||||||
Additions due to acquisition | — | — | — | 767 | |||||||||||||
Transfers from loans held for sale | — | — | 1,058 | — | |||||||||||||
Gains (losses): | |||||||||||||||||
Recorded in earnings (realized): | |||||||||||||||||
Recorded in “Interest on investments” | 1 | 3 | — | — | |||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | 320 | (11,036 | ) | ||||||||||||
Recorded in OCI (pre-tax) | — | 27 | — | — | |||||||||||||
New originations | — | — | — | 6,046 | |||||||||||||
Repayments | — | — | (1,333 | ) | — | ||||||||||||
Draws on previously issued lines of credits | — | — | 128 | — | |||||||||||||
Balance, end of period | $ | 397 | $ | 435 | $ | 17,881 | $ | 74,380 | |||||||||
Three months ended September 30, 2013 | |||||||||||||||||
Securities available-for-sale | |||||||||||||||||
(Dollars in thousands) | Taxable obligations of | Corporate Debt | Loan servicing | ||||||||||||||
state and political | Securities | rights | |||||||||||||||
subdivisions | |||||||||||||||||
Balance, beginning of period | $ | 396 | $ | 14,006 | $ | 65,187 | |||||||||||
Gains (losses): | |||||||||||||||||
Recorded in earnings (realized): | |||||||||||||||||
Recorded in “Interest on investments” | — | 47 | |||||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | (69 | ) | |||||||||||||
Recorded in OCI (pre-tax) | — | (44 | ) | — | |||||||||||||
New originations | — | — | 6,633 | ||||||||||||||
Sales/calls | — | (835 | ) | — | |||||||||||||
Balance, end of period | $ | 396 | $ | 13,174 | $ | 71,751 | |||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||
Securities available-for-sale | |||||||||||||||||
(Dollars in thousands) | Taxable obligations of | Corporate debt | Loan servicing | ||||||||||||||
state and political | securities | rights | |||||||||||||||
subdivisions | |||||||||||||||||
Balance, beginning of period | $ | 396 | $ | 15,250 | $ | — | |||||||||||
Transfers based on new accounting policy election | — | — | 5,657 | -1 | |||||||||||||
Additions due to acquisition | — | — | 41,967 | ||||||||||||||
Gains (losses): | |||||||||||||||||
Recorded in earnings (realized): | |||||||||||||||||
Recorded in “Net gain (loss) on sale of securities” | — | 69 | — | ||||||||||||||
Recorded in “Interest on investments” | — | 47 | — | ||||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | 3,997 | ||||||||||||||
Recorded in OCI (pre-tax) | — | 189 | — | ||||||||||||||
Purchases | — | 440 | — | ||||||||||||||
New originations | — | — | 20,130 | ||||||||||||||
Sales/calls | — | (2,821 | ) | — | |||||||||||||
Balance, end of period | $ | 396 | $ | 13,174 | $ | 71,751 | |||||||||||
(1) The balance transferred includes $31 thousand of cumulative adjustment related to the change in accounting policy referenced in Note 1 to our audited financial statements included in our 2013 Annual Report. | |||||||||||||||||
Schedule of aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans position held for investment | ' | ||||||||||||||||
(Dollars in thousands) | September 30, 2014 | December 31, 2013 | |||||||||||||||
Aggregate fair value | $ | 17,881 | $ | 17,708 | |||||||||||||
Contractual balance | 17,816 | 18,022 | |||||||||||||||
Fair market value gain (loss) | 65 | (314 | ) | ||||||||||||||
Schedule of aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale | ' | ||||||||||||||||
(Dollars in thousands) | September 30, 2014 | December 31, 2013 | |||||||||||||||
Aggregate fair value | $ | 122,599 | $ | 85,252 | |||||||||||||
Contractual balance | 117,015 | 82,567 | |||||||||||||||
Unrealized gain | 5,584 | 2,685 | |||||||||||||||
Schedule of total amount of gains/(losses) from changes in fair value included in earnings | ' | ||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Change in fair value | $ | (1,935 | ) | $ | 12,652 | $ | 2,899 | $ | 944 | ||||||||
Schedule of the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis | ' | ||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable Inputs | |||||||||||||||
for Identical | Observable | (Level 3) | |||||||||||||||
Assets | Inputs | ||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
September 30, 2014 | |||||||||||||||||
Impaired loans:(1) | |||||||||||||||||
Uncovered | |||||||||||||||||
Residential real estate | $ | 2,773 | $ | — | $ | — | $ | 2,773 | |||||||||
Commercial real estate | 3,220 | — | — | 3,220 | |||||||||||||
Commercial and industrial | 7,423 | — | — | 7,423 | |||||||||||||
Consumer | 15 | — | — | 15 | |||||||||||||
Total uncovered impaired loans | 13,431 | — | — | 13,431 | |||||||||||||
Covered | |||||||||||||||||
Residential real estate | 26 | — | — | 26 | |||||||||||||
Commercial and industrial | 867 | — | — | 867 | |||||||||||||
Total covered impaired loans | 893 | — | — | 893 | |||||||||||||
Total impaired loans | 14,324 | — | — | 14,324 | |||||||||||||
Other real estate owned (uncovered)(2) | 6,793 | — | — | 6,793 | |||||||||||||
Other real estate owned (covered)(3) | 2,062 | — | — | 2,062 | |||||||||||||
Premises and equipment(4) | 675 | — | 675 | — | |||||||||||||
Total | $ | 23,854 | $ | — | $ | 675 | $ | 23,179 | |||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans:(1) | |||||||||||||||||
Uncovered | |||||||||||||||||
Residential real estate | $ | 1,569 | $ | — | $ | — | $ | 1,569 | |||||||||
Commercial and industrial | 762 | — | — | 762 | |||||||||||||
Total uncovered impaired loans | 2,331 | — | — | 2,331 | |||||||||||||
Covered | |||||||||||||||||
Commercial real estate | 644 | — | — | 644 | |||||||||||||
Total covered impaired loans | 644 | — | — | 644 | |||||||||||||
Total impaired loans | 2,975 | — | — | 2,975 | |||||||||||||
Other real estate owned (uncovered) (2) | 2,216 | — | — | 2,216 | |||||||||||||
Other real estate owned (covered) (3) | 4,596 | — | — | 4,596 | |||||||||||||
Premises and equipment(4) | 105 | — | 105 | — | |||||||||||||
Total | $ | 9,892 | $ | — | $ | 105 | $ | 9,787 | |||||||||
(1) Specific reserves of $2.8 million and $1.4 million were provided to reduce the fair value of these loans at September 30, 2014 and December 31, 2013, respectively, based on the estimated fair value of the underlying collateral. In addition, charge-offs of $633 thousand and $36 thousand reduced the fair value of these loans in for the three months ended September 30, 2014 and 2013, respectively, and $1.3 million and $441 thousand for the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||
(2) The Company charged $1.4 million and $155 thousand through other non-interest expenses during the three months ended September 30, 2014 and 2013, respectively, and $2.9 million and $1.4 million during the nine months ended September 30, 2014 and 2013, respectively, to reduce the fair value of these properties. | |||||||||||||||||
(3) The Company charged $701 thousand and $2.0 million through other noninterest expenses during the three months ended September 30, 2014 and 2013, respectively, and $1.6 million and $4.3 million during the nine months ended September 30, 2014 and 2013, respectively, to reduce the fair value of these properties. These expenses were partially offset by FDIC loss sharing income recorded due to the associated loss share coverage. | |||||||||||||||||
(4) The Company charged $185 thousand and $109 thousand through other noninterest expenses during both the three and nine months ended September 30, 2014 and 2013, respectively, to reduce the value of premises and equipment deemed impaired during the period. | |||||||||||||||||
Recurring basis | ' | ||||||||||||||||
Fair Value | ' | ||||||||||||||||
Schedule of the carrying amount and estimated fair values of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company's consolidated balance sheets | ' | ||||||||||||||||
Estimated Fair Value | |||||||||||||||||
(Dollars in thousands) | Carrying Value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
September 30, 2014 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 298,666 | $ | 298,666 | $ | 91,214 | $ | 207,452 | $ | — | |||||||
Federal Home Loan Bank stock | 17,426 | N/A | |||||||||||||||
Net loans, excluding covered loans(1) | 3,601,441 | 3,684,609 | — | — | 3,684,609 | ||||||||||||
Net covered loans(2) | 378,024 | 453,652 | — | — | 453,652 | ||||||||||||
Accrued interest receivable | 12,876 | 12,876 | — | 12,876 | — | ||||||||||||
FDIC indemnification asset | 82,441 | 52,145 | — | — | 52,145 | ||||||||||||
FDIC receivable | 12,873 | 12,873 | — | 12,873 | — | ||||||||||||
Company-owned life insurance | 96,605 | 96,605 | — | 96,605 | — | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Savings and demand deposits | $ | 3,178,616 | $ | 3,178,616 | $ | — | $ | 3,178,616 | $ | — | |||||||
Time deposits(3) | 1,306,981 | 1,306,427 | — | 1,306,427 | — | ||||||||||||
Total deposits | 4,485,597 | 4,485,043 | — | 4,485,043 | |||||||||||||
FDIC clawback liability | 25,723 | 25,723 | — | — | 25,723 | ||||||||||||
Short term borrowings | 150,573 | 150,573 | — | 150,573 | — | ||||||||||||
Long-term debt | 285,009 | 279,011 | — | 279,011 | — | ||||||||||||
FDIC warrants payable | 4,563 | 4,563 | — | — | 4,563 | ||||||||||||
Accrued interest payable | 694 | 694 | — | 694 | — | ||||||||||||
Deferred compensation plan liabilities | 218 | 218 | — | 218 | — | ||||||||||||
(1) Included $13.4 million of impaired loans recorded at fair value on a nonrecurring basis and $17.9 million of loans recorded at fair value on a recurring basis. | |||||||||||||||||
(2) Included $893 thousand of impaired loans recorded at fair value on a nonrecurring basis. | |||||||||||||||||
(3) Includes $50.0 million of other brokered funds. | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
(Dollars in thousands) | Carrying Value | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2013 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 375,356 | $ | 375,356 | $ | 97,167 | $ | 278,189 | $ | — | |||||||
Federal Home Loan Bank stock | 16,303 | N/A | |||||||||||||||
Net loans, excluding covered loans(1) | 2,456,170 | 2,574,109 | — | — | 2,574,109 | ||||||||||||
Net covered loans(2) | 489,687 | 534,857 | — | — | 534,857 | ||||||||||||
Accrued interest receivable | 7,968 | 7,968 | — | 7,968 | — | ||||||||||||
FDIC indemnification asset | 131,861 | 84,010 | — | — | 84,010 | ||||||||||||
FDIC receivable | 7,783 | 7,783 | — | 7,783 | — | ||||||||||||
Company-owned life insurance | 39,500 | 39,500 | — | 39,500 | — | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Savings and demand deposits | $ | 2,673,524 | $ | 2,673,524 | $ | — | $ | 2,673,524 | $ | — | |||||||
Time deposits | 927,313 | 928,128 | — | 928,128 | — | ||||||||||||
Total deposits | 3,600,837 | 3,601,652 | — | 3,601,652 | — | ||||||||||||
FDIC clawback liability | 24,887 | 24,887 | — | — | 24,887 | ||||||||||||
Short term borrowings | 71,876 | 71,876 | — | 71,876 | — | ||||||||||||
Long-term debt | 199,037 | 190,420 | — | 190,420 | — | ||||||||||||
FDIC warrants payable | 4,118 | 4,118 | — | — | 4,118 | ||||||||||||
Accrued interest payable | 626 | 626 | — | 626 | — | ||||||||||||
(1) Included $2.3 million of impaired loans recorded at fair value on a nonrecurring basis and $17.7 million of loans recorded at fair value on a recurring basis. | |||||||||||||||||
(2) Included $644 thousand of impaired loans recorded at fair value on a nonrecurring basis. |
SECURITIES_Tables
SECURITIES (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
Summary of the Company's investment securities available-for-sale | ' | |||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair Value | ||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||
Gains | Losses | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 105,806 | $ | 427 | $ | (543 | ) | $ | 105,690 | |||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||
Taxable | 397 | — | — | 397 | ||||||||||||||||
Tax-exempt | 217,671 | 3,724 | (865 | ) | 220,530 | |||||||||||||||
SBA Pools | 35,346 | 162 | (176 | ) | 35,332 | |||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 299,591 | 1,704 | (1,690 | ) | 299,605 | |||||||||||||||
Privately issued | 9,984 | 5 | (30 | ) | 9,959 | |||||||||||||||
Privately issued commercial mortgage-backed securities | 5,141 | — | (6 | ) | 5,135 | |||||||||||||||
Corporate debt securities | 57,342 | 706 | (207 | ) | 57,841 | |||||||||||||||
Total securities available-for-sale | $ | 731,278 | $ | 6,728 | $ | (3,517 | ) | $ | 734,489 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 102,597 | $ | — | $ | (4,360 | ) | $ | 98,237 | |||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||
Taxable | 396 | — | — | 396 | ||||||||||||||||
Tax-exempt | 184,351 | 2,102 | (4,453 | ) | 182,000 | |||||||||||||||
SBA Pools | 42,956 | 162 | (692 | ) | 42,426 | |||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 223,518 | 729 | (5,325 | ) | 218,922 | |||||||||||||||
Privately issued | 4,453 | 22 | (29 | ) | 4,446 | |||||||||||||||
Privately issued commercial mortgage-backed securities | 5,181 | — | (34 | ) | 5,147 | |||||||||||||||
Corporate debt securities | 68,433 | 237 | (650 | ) | 68,020 | |||||||||||||||
Equity securities | 500 | — | (11 | ) | 489 | |||||||||||||||
Total securities available-for-sale | $ | 632,385 | $ | 3,252 | $ | (15,554 | ) | $ | 620,083 | |||||||||||
Schedule of proceeds from sales of securities and the associated gains and losses recorded in earnings | ' | |||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Proceeds | $ | 28,285 | $ | — | $ | 82,496 | $ | 7,500 | ||||||||||||
Gross gains | 248 | — | 248 | 124 | ||||||||||||||||
Gross losses | (4 | ) | — | (2,314 | ) | (24 | ) | |||||||||||||
Schedule of amortized cost and fair value of debt securities by contractual maturity | ' | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | ||||||||||||||||||
Securities with contractual maturities: | ||||||||||||||||||||
Within one year | $ | 1,755 | $ | 1,755 | ||||||||||||||||
After one year through five years | 84,416 | 85,581 | ||||||||||||||||||
After five years through ten years | 169,417 | 170,787 | ||||||||||||||||||
After ten years | 475,690 | 476,366 | ||||||||||||||||||
Total securities available-for-sale | $ | 731,278 | $ | 734,489 | ||||||||||||||||
Summary of the investment securities available-for-sale in an unrealized loss position | ' | |||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized | Fair Value | Unrealized | Fair | Unrealized | ||||||||||||||
losses | losses | Value | losses | |||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 29,910 | $ | (83 | ) | $ | 49,531 | $ | (460 | ) | $ | 79,441 | $ | (543 | ) | |||||
Obligations of state and political subdivisions: | ||||||||||||||||||||
Tax-exempt | 35,291 | (209 | ) | 41,912 | (656 | ) | 77,203 | (865 | ) | |||||||||||
SBA Pools | 1,861 | (10 | ) | 18,191 | (166 | ) | 20,052 | (176 | ) | |||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 89,613 | (383 | ) | 62,954 | (1,307 | ) | 152,567 | (1,690 | ) | |||||||||||
Privately issued | 8,130 | (30 | ) | 56 | — | 8,186 | (30 | ) | ||||||||||||
Privately issued commercial mortgage-backed securities | 5,135 | (6 | ) | — | — | 5,135 | (6 | ) | ||||||||||||
Corporate debt securities | 12,879 | (115 | ) | 8,964 | (92 | ) | 21,843 | (207 | ) | |||||||||||
Total securities available-for-sale | $ | 182,819 | $ | (836 | ) | $ | 181,608 | $ | (2,681 | ) | $ | 364,427 | $ | (3,517 | ) | |||||
December 31, 2013 | ||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 98,237 | $ | (4,360 | ) | $ | — | $ | — | $ | 98,237 | $ | (4,360 | ) | ||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||
Tax-exempt | 102,585 | (4,159 | ) | 5,794 | (294 | ) | 108,379 | (4,453 | ) | |||||||||||
SBA Pools | 26,498 | (692 | ) | — | — | 26,498 | (692 | ) | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 155,028 | (4,952 | ) | 18,846 | (373 | ) | 173,874 | (5,325 | ) | |||||||||||
Privately issued | 557 | (1 | ) | 1,746 | (28 | ) | 2,303 | (29 | ) | |||||||||||
Privately issued commercial mortgage-backed securities | 5,147 | (34 | ) | — | — | 5,147 | (34 | ) | ||||||||||||
Corporate debt securities | 34,487 | (650 | ) | — | — | 34,487 | (650 | ) | ||||||||||||
Equity securities | 489 | (11 | ) | — | — | 489 | (11 | ) | ||||||||||||
Total securities available-for-sale | $ | 423,028 | $ | (14,859 | ) | $ | 26,386 | $ | (695 | ) | $ | 449,414 | $ | (15,554 | ) |
LOANS_Tables
LOANS (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||
Schedule of loans | ' | ||||||||||||||||||||||||
Covered loans | Uncovered loans | ||||||||||||||||||||||||
(Dollars in thousands) | Accounted | Excluded from | Total | Accounted | Excluded from | Total | Total | ||||||||||||||||||
for under | ASC 310-30 | covered | for under | ASC 310-30 | uncovered | ||||||||||||||||||||
ASC 310-30 | accounting | loans | ASC 310-30 | accounting | loans | ||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Residential real estate | $ | 90,763 | $ | 22,465 | $ | 113,228 | $ | 250,527 | $ | 1,180,412 | $ | 1,430,939 | $ | 1,544,167 | |||||||||||
Commercial real estate | 197,194 | 22,302 | 219,496 | 207,006 | 1,006,355 | 1,213,361 | 1,432,857 | ||||||||||||||||||
Commercial and industrial | 32,977 | 14,275 | 47,252 | 17,092 | 773,775 | 790,867 | 838,119 | ||||||||||||||||||
Real estate construction | 12,531 | 1,203 | 13,734 | 8,717 | 94,203 | 102,920 | 116,654 | ||||||||||||||||||
Consumer | 9,949 | 133 | 10,082 | 2,817 | 90,429 | 93,246 | 103,328 | ||||||||||||||||||
Total | $ | 343,414 | $ | 60,378 | $ | 403,792 | $ | 486,159 | $ | 3,145,174 | $ | 3,631,333 | $ | 4,035,125 | -1 | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Residential real estate | $ | 100,034 | $ | 23,300 | $ | 123,334 | $ | 253,528 | $ | 831,925 | $ | 1,085,453 | $ | 1,208,787 | |||||||||||
Commercial real estate | 262,769 | 36,632 | 299,401 | 98,299 | 657,540 | 755,839 | 1,055,240 | ||||||||||||||||||
Commercial and industrial | 51,407 | 27,030 | 78,437 | 5,985 | 440,659 | 446,644 | 525,081 | ||||||||||||||||||
Real estate construction | 15,268 | 1,950 | 17,218 | 1,970 | 174,256 | 176,226 | 193,444 | ||||||||||||||||||
Consumer | 11,508 | 170 | 11,678 | 2,907 | 6,847 | 9,754 | 21,432 | ||||||||||||||||||
Total | $ | 440,986 | $ | 89,082 | $ | 530,068 | $ | 362,689 | $ | 2,111,227 | $ | 2,473,916 | $ | 3,003,984 | -1 | ||||||||||
(1) Reported net of deferred fees and costs totaling $5.4 million and $9.8 million at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
Schedule of information as to nonperforming assets | ' | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Uncovered nonperforming assets | |||||||||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||||||||
Residential real estate | $ | 15,733 | $ | 15,415 | |||||||||||||||||||||
Commercial real estate | 12,578 | 5,591 | |||||||||||||||||||||||
Commercial and industrial | 14,474 | 2,681 | |||||||||||||||||||||||
Real estate construction | 253 | 510 | |||||||||||||||||||||||
Consumer | 245 | 100 | |||||||||||||||||||||||
Total nonaccrual loans | 43,283 | 24,297 | |||||||||||||||||||||||
Other real estate owned (1) | 32,022 | 17,046 | |||||||||||||||||||||||
Total uncovered nonperforming assets | 75,305 | 41,343 | |||||||||||||||||||||||
Covered nonperforming assets | |||||||||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||||||||
Residential real estate | 1,737 | 988 | |||||||||||||||||||||||
Commercial real estate | 5,457 | 8,124 | |||||||||||||||||||||||
Commercial and industrial | 4,091 | 7,201 | |||||||||||||||||||||||
Real estate construction | 1,055 | 1,372 | |||||||||||||||||||||||
Consumer | 42 | 31 | |||||||||||||||||||||||
Total nonaccrual loans | 12,382 | 17,716 | |||||||||||||||||||||||
Other real estate owned | 11,766 | 11,571 | |||||||||||||||||||||||
Total covered nonperforming assets | 24,148 | 29,287 | |||||||||||||||||||||||
Total nonperforming assets | $ | 99,453 | $ | 70,630 | |||||||||||||||||||||
Uncovered loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | 282 | 539 | |||||||||||||||||||||||
Commercial real estate | 139 | — | |||||||||||||||||||||||
Real estate construction | 174 | — | |||||||||||||||||||||||
Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 | $ | 595 | $ | 539 | |||||||||||||||||||||
(1) Excludes closed branches and operating facilities. | |||||||||||||||||||||||||
Schedule of information as to impaired loans both individually and collectively evaluated for impairment | ' | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Nonaccrual loans | $ | 43,283 | $ | 24,297 | |||||||||||||||||||||
Performing troubled debt restructurings: | |||||||||||||||||||||||||
Residential real estate | 1,802 | 328 | |||||||||||||||||||||||
Commercial real estate | 2,961 | 1,637 | |||||||||||||||||||||||
Commercial and industrial | 652 | 1,367 | |||||||||||||||||||||||
Real estate construction | 92 | 90 | |||||||||||||||||||||||
Consumer | 56 | 30 | |||||||||||||||||||||||
Total uncovered performing troubled debt restructurings | 5,563 | 3,452 | |||||||||||||||||||||||
Total uncovered impaired loans | $ | 48,846 | $ | 27,749 | |||||||||||||||||||||
Covered | |||||||||||||||||||||||||
Nonaccrual loans | $ | 12,382 | $ | 17,716 | |||||||||||||||||||||
Performing troubled debt restructurings: | |||||||||||||||||||||||||
Residential real estate | 2,860 | 2,691 | |||||||||||||||||||||||
Commercial real estate | 14,915 | 14,391 | |||||||||||||||||||||||
Commercial and industrial | 2,119 | 3,802 | |||||||||||||||||||||||
Real estate construction | 108 | 163 | |||||||||||||||||||||||
Total covered performing troubled debt restructurings | 20,002 | 21,047 | |||||||||||||||||||||||
Total covered impaired loans | $ | 32,384 | $ | 38,763 | |||||||||||||||||||||
Schedule of the recorded investment of loans modified in TDRs during the period by type of concession granted | ' | ||||||||||||||||||||||||
Concession type | Financial effects of modification | ||||||||||||||||||||||||
(Dollars in thousands) | Principal | Principal | Interest rate | Forbearance | Total number | Total recorded | Net | Provision | |||||||||||||||||
deferral | reduction (1) | agreement | of loans | investment at | charge-offs | (benefit) for loan | |||||||||||||||||||
September 30, 2014 | (recoveries) | losses (2) | |||||||||||||||||||||||
For the three months ended September 30, 2014 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | 1 | $ | 166 | $ | 486 | $ | — | 8 | $ | 653 | $ | 18 | $ | 29 | ||||||||||
Commercial real estate | 435 | — | 258 | 126 | 7 | 819 | (18 | ) | (18 | ) | |||||||||||||||
Commercial and industrial | — | — | 35 | — | 2 | 35 | — | (31 | ) | ||||||||||||||||
Consumer | 27 | — | — | — | 1 | 27 | — | — | |||||||||||||||||
Total uncovered | 463 | 166 | 779 | 126 | 18 | 1,534 | — | (20 | ) | ||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | $ | 191 | $ | 14 | $ | — | $ | — | 4 | $ | 205 | $ | — | $ | (1 | ) | |||||||||
Commercial and industrial | — | — | 62 | — | 2 | 62 | — | 2 | |||||||||||||||||
Total covered | 191 | 14 | 62 | — | 6 | 267 | — | 1 | |||||||||||||||||
Total loans | $ | 654 | $ | 180 | $ | 841 | $ | 126 | 24 | $ | 1,801 | $ | — | $ | (19 | ) | |||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | 144 | $ | 384 | $ | 714 | $ | 135 | 23 | $ | 1,377 | $ | 65 | $ | 216 | ||||||||||
Commercial real estate | 435 | — | 979 | 1,159 | 12 | 2,573 | (46 | ) | 431 | ||||||||||||||||
Commercial and industrial | 36 | — | 93 | 112 | 12 | 241 | — | — | |||||||||||||||||
Consumer | 27 | 83 | — | — | 3 | 110 | 2 | 21 | |||||||||||||||||
Total uncovered | 642 | 467 | 1,786 | 1,406 | 50 | 4,301 | 21 | 668 | |||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | $ | 300 | $ | 28 | $ | 262 | $ | — | 17 | $ | 590 | $ | 6 | $ | 14 | ||||||||||
Commercial real estate | — | — | 643 | 412 | 3 | 1,055 | — | 70 | |||||||||||||||||
Commercial and industrial | — | — | 253 | 92 | 10 | 345 | — | 8 | |||||||||||||||||
Total covered | 300 | 28 | 1,158 | 504 | 30 | 1,990 | 6 | 92 | |||||||||||||||||
Total loans | $ | 942 | $ | 495 | $ | 2,944 | $ | 1,910 | 80 | $ | 6,291 | $ | 27 | $ | 760 | ||||||||||
(1) Loan forgiveness related to loans modified in TDRs for the three and nine months ended September 30, 2014 totaled $273 thousand and $677 thousand, respectively. | |||||||||||||||||||||||||
(2) The provision for loan losses for covered loans is partially offset by the build of an associated FDIC indemnification asset on covered loans. | |||||||||||||||||||||||||
Concession type | Financial effects of | ||||||||||||||||||||||||
modification | |||||||||||||||||||||||||
(Dollars in thousands) | Principal | Interest | Forbearance | Principal | Total | Total recorded | Net | Provision | |||||||||||||||||
deferral | rate | agreement | Reduction | number | investment at | charge-offs | (benefit) for | ||||||||||||||||||
of loans | September 30, 2013 | -1 | loan losses (2) | ||||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | — | $ | 614 | $ | — | $ | — | 3 | $ | 614 | $ | 11 | $ | 44 | ||||||||||
Commercial real estate | — | — | 1,631 | — | 1 | 1,631 | 14 | — | |||||||||||||||||
Consumer | — | 30 | — | — | 1 | 30 | — | 1 | |||||||||||||||||
Total uncovered | — | 644 | 1,631 | — | 5 | 2,275 | 25 | 45 | |||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | $ | 131 | $ | 169 | $ | — | $ | 28 | 6 | $ | 328 | $ | 16 | $ | 16 | ||||||||||
Commercial real estate | 160 | 607 | — | — | 3 | 767 | — | (5 | ) | ||||||||||||||||
Consumer | 7 | — | — | — | 1 | 7 | — | — | |||||||||||||||||
Total covered | 298 | 776 | — | 28 | 10 | 1,102 | 16 | 11 | |||||||||||||||||
Total loans | $ | 298 | $ | 1,420 | $ | 1,631 | $ | 28 | 15 | $ | 3,377 | $ | 41 | $ | 56 | ||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | 4 | $ | 1,170 | $ | — | $ | — | 10 | $ | 1,174 | $ | 11 | $ | 48 | ||||||||||
Commercial real estate | 1,795 | 1,355 | 1,650 | — | 10 | 4,800 | 155 | — | |||||||||||||||||
Commercial and industrial | — | 124 | — | — | 7 | 124 | — | — | |||||||||||||||||
Consumer | — | 30 | — | — | 1 | 30 | — | 1 | |||||||||||||||||
Total uncovered | 1,799 | 2,679 | 1,650 | — | 28 | 6,128 | 166 | 49 | |||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | $ | 905 | $ | 182 | $ | — | $ | 28 | 19 | $ | 1,115 | $ | 16 | $ | 16 | ||||||||||
Commercial real estate | 232 | 2,489 | — | — | 16 | 2,721 | 937 | 553 | |||||||||||||||||
Commercial and industrial | 608 | 548 | 69 | — | 31 | 1,225 | 44 | 37 | |||||||||||||||||
Real estate construction | 730 | 7 | — | — | 3 | 737 | — | — | |||||||||||||||||
Consumer | 7 | — | — | — | 2 | 7 | — | — | |||||||||||||||||
Total covered | 2,482 | 3,226 | 69 | 28 | 71 | 5,805 | 997 | 606 | |||||||||||||||||
Total loans | $ | 4,281 | $ | 5,905 | $ | 1,719 | $ | 28 | 99 | $ | 11,933 | $ | 1,163 | $ | 655 | ||||||||||
(1) Loan forgiveness related to loans modified in TDRs for the was $25 thousand for both the three and nine months ended September 30, 2013. | |||||||||||||||||||||||||
(2) The provision for loan losses for covered loans is partially offset by the build of an associated FDIC indemnification asset on covered loans. | |||||||||||||||||||||||||
Schedule of the number of loans modified in TDRs during the previous 12 months for which there was payment default during the period, including the recorded investment | ' | ||||||||||||||||||||||||
For the three months ended September 30, 2014 | For the nine months ended September 30, 2014 | ||||||||||||||||||||||||
(Dollars in thousands) | Total number | Total recorded | Charged off following | Total number | Total recorded | Charged off following | |||||||||||||||||||
of loans | investment at | a subsequent default | of loans | investment at | a subsequent default | ||||||||||||||||||||
period end | period end | ||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | 11 | $ | 700 | $ | 8 | 21 | $ | 1,345 | $ | 119 | |||||||||||||||
Commercial real estate | 6 | 1,739 | — | 8 | 3,013 | 323 | |||||||||||||||||||
Commercial and industrial | 1 | 135 | — | 2 | 135 | — | |||||||||||||||||||
Total uncovered | 18 | 2,574 | 8 | 31 | 4,493 | 442 | |||||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | 6 | 29 | — | 9 | 242 | 12 | |||||||||||||||||||
Commercial real estate | 2 | 512 | — | 6 | 637 | — | |||||||||||||||||||
Commercial and industrial | 3 | 101 | 4 | 10 | 235 | 6 | |||||||||||||||||||
Real estate construction | — | — | — | 1 | 364 | 483 | |||||||||||||||||||
Total covered | 11 | 642 | 4 | 26 | 1,478 | 501 | |||||||||||||||||||
Total loans | 29 | $ | 3,216 | $ | 12 | 57 | $ | 5,971 | $ | 943 | |||||||||||||||
For the three months ended September 30, 2013 | For the nine months ended September 30, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Total number | Total recorded | Charged off following | Total number | Total recorded | Charged off following | |||||||||||||||||||
of loans | investment at | a subsequent default | of loans | investment at | a subsequent default | ||||||||||||||||||||
period end | period end | ||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | 1 | $ | 119 | $ | — | 6 | $ | 398 | $ | 25 | |||||||||||||||
Commercial real estate | 2 | 121 | 141 | 4 | 1,186 | 155 | |||||||||||||||||||
Commercial and industrial | — | — | — | 2 | 439 | — | |||||||||||||||||||
Consumer | 1 | 30 | — | 1 | 30 | 3 | |||||||||||||||||||
Total uncovered | 4 | 270 | 141 | 13 | 2,053 | 183 | |||||||||||||||||||
Covered | |||||||||||||||||||||||||
Residential real estate | 10 | 345 | 11 | 16 | 488 | 236 | |||||||||||||||||||
Commercial real estate | 13 | 1,125 | 170 | 24 | 2,627 | 1,517 | |||||||||||||||||||
Commercial and industrial | 21 | 767 | 317 | 27 | 1,020 | 678 | |||||||||||||||||||
Real estate construction | 1 | 678 | — | 1 | 678 | — | |||||||||||||||||||
Consumer | 4 | 19 | 20 | 5 | 19 | 21 | |||||||||||||||||||
Total covered | 49 | 2,934 | 518 | 73 | 4,832 | 2,452 | |||||||||||||||||||
Total loans | 53 | $ | 3,204 | $ | 659 | 86 | $ | 6,885 | $ | 2,635 | |||||||||||||||
Commercial and industrial, Commercial real estate and Real estate construction | ' | ||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||
Schedule of loans by credit quality | ' | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special | Substandard | Doubtful | Total | ||||||||||||||||||||
Mention | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Uncovered loans | |||||||||||||||||||||||||
Commercial real estate | $ | 1,058,783 | $ | 60,705 | $ | 81,295 | $ | 12,578 | $ | 1,213,361 | |||||||||||||||
Commercial and industrial | 755,869 | 9,167 | 11,357 | 14,474 | 790,867 | ||||||||||||||||||||
Real estate construction | 96,037 | 1,435 | 5,195 | 253 | 102,920 | ||||||||||||||||||||
Total | $ | 1,910,689 | $ | 71,307 | $ | 97,847 | $ | 27,305 | $ | 2,107,148 | |||||||||||||||
Covered loans | |||||||||||||||||||||||||
Commercial real estate | $ | 122,631 | $ | 14,704 | $ | 76,704 | $ | 5,457 | $ | 219,496 | |||||||||||||||
Commercial and industrial | 27,002 | 3,066 | 13,093 | 4,091 | 47,252 | ||||||||||||||||||||
Real estate construction | 7,390 | 843 | 4,446 | 1,055 | 13,734 | ||||||||||||||||||||
Total | $ | 157,023 | $ | 18,613 | $ | 94,243 | $ | 10,603 | $ | 280,482 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Uncovered loans | |||||||||||||||||||||||||
Commercial real estate | $ | 645,276 | $ | 43,597 | $ | 61,375 | $ | 5,591 | $ | 755,839 | |||||||||||||||
Commercial and industrial | 423,295 | 10,237 | 10,431 | 2,681 | 446,644 | ||||||||||||||||||||
Real estate construction | 164,466 | 19 | 11,231 | 510 | 176,226 | ||||||||||||||||||||
Total | $ | 1,233,037 | $ | 53,853 | $ | 83,037 | $ | 8,782 | $ | 1,378,709 | |||||||||||||||
Covered loans | |||||||||||||||||||||||||
Commercial real estate | $ | 163,167 | $ | 17,058 | $ | 111,052 | $ | 8,124 | $ | 299,401 | |||||||||||||||
Commercial and industrial | 43,917 | 6,951 | 20,368 | 7,201 | 78,437 | ||||||||||||||||||||
Real estate construction | 6,193 | 2,803 | 6,850 | 1,372 | 17,218 | ||||||||||||||||||||
Total | $ | 213,277 | $ | 26,812 | $ | 138,270 | $ | 16,697 | $ | 395,056 | |||||||||||||||
Residential real estate and consumer loans | ' | ||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||
Schedule of loans by credit quality | ' | ||||||||||||||||||||||||
(Dollars in thousands) | Performing | Nonperforming | Total | ||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Uncovered loans | |||||||||||||||||||||||||
Residential real estate | $ | 1,415,206 | $ | 15,733 | $ | 1,430,939 | |||||||||||||||||||
Consumer | 93,001 | 245 | 93,246 | ||||||||||||||||||||||
Total | $ | 1,508,207 | $ | 15,978 | $ | 1,524,185 | |||||||||||||||||||
Covered loans | |||||||||||||||||||||||||
Residential real estate | $ | 111,491 | $ | 1,737 | $ | 113,228 | |||||||||||||||||||
Consumer | 10,040 | 42 | 10,082 | ||||||||||||||||||||||
Total | $ | 121,531 | $ | 1,779 | $ | 123,310 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Uncovered | |||||||||||||||||||||||||
Residential real estate | $ | 1,070,038 | $ | 15,415 | $ | 1,085,453 | |||||||||||||||||||
Consumer | 9,654 | 100 | 9,754 | ||||||||||||||||||||||
Total | $ | 1,079,692 | $ | 15,515 | $ | 1,095,207 | |||||||||||||||||||
Covered loans | |||||||||||||||||||||||||
Residential real estate | $ | 122,346 | $ | 988 | $ | 123,334 | |||||||||||||||||||
Consumer | 11,647 | 31 | 11,678 | ||||||||||||||||||||||
Total | $ | 133,993 | $ | 1,019 | $ | 135,012 | |||||||||||||||||||
Excluding loans accounted for under ASC 310-30 | ' | ||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||
Schedule of loan delinquency | ' | ||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | 30-59 days | 60-89 days | 90 days or more | Total past due | Current | Total loans | 90 days or more | ||||||||||||||||||
past due | past due | past due | past due and still | ||||||||||||||||||||||
accruing | |||||||||||||||||||||||||
Uncovered loans, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | $ | 3,808 | $ | 1,939 | $ | 8,400 | $ | 14,147 | $ | 1,166,265 | $ | 1,180,412 | $ | 282 | |||||||||||
Commercial real estate | 3,545 | 3,447 | 9,515 | 16,507 | 989,848 | 1,006,355 | 139 | ||||||||||||||||||
Commercial and industrial | 3,641 | 1,544 | 1,925 | 7,110 | 766,665 | 773,775 | — | ||||||||||||||||||
Real estate construction | 418 | — | 348 | 766 | 93,437 | 94,203 | 174 | ||||||||||||||||||
Consumer | 180 | 75 | 21 | 276 | 90,153 | 90,429 | — | ||||||||||||||||||
Total | $ | 11,592 | $ | 7,005 | $ | 20,209 | $ | 38,806 | $ | 3,106,368 | $ | 3,145,174 | $ | 595 | |||||||||||
Covered loans, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | $ | 484 | $ | 565 | $ | 978 | $ | 2,027 | $ | 20,438 | $ | 22,465 | $ | — | |||||||||||
Commercial real estate | — | 199 | 5,223 | 5,422 | 16,880 | 22,302 | — | ||||||||||||||||||
Commercial and industrial | 163 | 114 | 3,494 | 3,771 | 10,504 | 14,275 | — | ||||||||||||||||||
Real estate construction | 53 | 102 | 1,001 | 1,156 | 47 | 1,203 | — | ||||||||||||||||||
Consumer | 3 | — | 30 | 33 | 100 | 133 | — | ||||||||||||||||||
Total | $ | 703 | $ | 980 | $ | 10,726 | $ | 12,409 | $ | 47,969 | $ | 60,378 | $ | — | |||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | 30-59 days | 60-89 days | 90 days or more | Total past due | Current | Total loans | 90 days or more | ||||||||||||||||||
past due | past due | past due | past due and still | ||||||||||||||||||||||
accruing | |||||||||||||||||||||||||
Uncovered loans, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | $ | 11,244 | $ | 1,849 | $ | 6,641 | $ | 19,734 | $ | 812,191 | $ | 831,925 | $ | 539 | |||||||||||
Commercial real estate | 1,400 | 4,992 | 1,122 | 7,514 | 650,026 | 657,540 | — | ||||||||||||||||||
Commercial and industrial | 136 | 25 | 560 | 721 | 439,938 | 440,659 | — | ||||||||||||||||||
Real estate construction | 5,038 | 356 | 359 | 5,753 | 168,503 | 174,256 | — | ||||||||||||||||||
Consumer | 207 | 38 | 4 | 249 | 6,598 | 6,847 | — | ||||||||||||||||||
Total | $ | 18,025 | $ | 7,260 | $ | 8,686 | $ | 33,971 | $ | 2,077,256 | $ | 2,111,227 | $ | 539 | |||||||||||
Covered loans, excluding loans accounted for under ASC 310-30 | |||||||||||||||||||||||||
Residential real estate | $ | 827 | $ | 260 | $ | 224 | $ | 1,311 | $ | 21,989 | $ | 23,300 | $ | — | |||||||||||
Commercial real estate | 324 | 558 | 5,681 | 6,563 | 30,069 | 36,632 | — | ||||||||||||||||||
Commercial and industrial | 1,619 | 119 | 4,476 | 6,214 | 20,816 | 27,030 | — | ||||||||||||||||||
Real estate construction | — | — | 1,365 | 1,365 | 585 | 1,950 | — | ||||||||||||||||||
Consumer | 1 | 17 | 7 | 25 | 145 | 170 | — | ||||||||||||||||||
Total | $ | 2,771 | $ | 954 | $ | 11,753 | $ | 15,478 | $ | 73,604 | $ | 89,082 | $ | — |
ALLOWANCE_FOR_LOAN_LOSSES_Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ' | |||||||||||||||||||
Schedule of information as to impaired loans individually evaluated for impairment | ' | |||||||||||||||||||
(Dollars in thousands) | Recorded | Recorded | Total recorded | Contractual | Related | |||||||||||||||
investment with | investment | investment | principal | allowance | ||||||||||||||||
no related | with related | balance | ||||||||||||||||||
allowance | allowance | |||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
Uncovered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 12,861 | $ | 4,114 | $ | 16,975 | $ | 21,148 | $ | 1,078 | ||||||||||
Commercial real estate | 5,963 | 4,430 | 10,393 | 13,949 | 723 | |||||||||||||||
Commercial and industrial | 4,021 | 8,870 | 12,891 | 13,642 | 1,436 | |||||||||||||||
Consumer | 111 | 188 | 299 | 385 | 81 | |||||||||||||||
Total uncovered individually evaluated impaired loans | $ | 22,956 | $ | 17,602 | $ | 40,558 | $ | 49,124 | $ | 3,318 | ||||||||||
Covered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 2,307 | $ | 2,215 | $ | 4,522 | $ | 5,768 | $ | 351 | ||||||||||
Commercial real estate | 16,589 | 654 | 17,243 | 21,458 | 63 | |||||||||||||||
Commercial and industrial | 897 | 883 | 1,780 | 1,948 | 80 | |||||||||||||||
Real estate construction | 412 | 364 | 776 | 2,691 | 224 | |||||||||||||||
Consumer | 12 | 1 | 13 | 41 | 1 | |||||||||||||||
Total covered individually evaluated impaired loans | $ | 20,217 | $ | 4,117 | $ | 24,334 | $ | 31,906 | $ | 719 | ||||||||||
31-Dec-13 | ||||||||||||||||||||
Uncovered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 8,143 | $ | 5,871 | $ | 14,014 | $ | 17,005 | $ | 1,923 | ||||||||||
Commercial real estate | 4,588 | — | 4,588 | 4,423 | — | |||||||||||||||
Commercial and industrial | 1,817 | 1,065 | 2,882 | 3,548 | 284 | |||||||||||||||
Real estate construction | 359 | — | 359 | 359 | — | |||||||||||||||
Consumer | 3 | 30 | 33 | 33 | 1 | |||||||||||||||
Total uncovered individually evaluated impaired loans | $ | 14,910 | $ | 6,966 | $ | 21,876 | $ | 25,368 | $ | 2,208 | ||||||||||
Covered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 1,141 | $ | 1,537 | $ | 2,678 | $ | 3,389 | $ | 360 | ||||||||||
Commercial real estate | 17,138 | 924 | 18,062 | 21,814 | 230 | |||||||||||||||
Commercial and industrial | 3,704 | 1,417 | 5,121 | 5,503 | 937 | |||||||||||||||
Real estate construction | 1,138 | — | 1,138 | 2,672 | — | |||||||||||||||
Consumer | 6 | 19 | 25 | 45 | 2 | |||||||||||||||
Total covered individually evaluated impaired loans | $ | 23,127 | $ | 3,897 | $ | 27,024 | $ | 33,423 | $ | 1,529 | ||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||
September 30, 2014 | September 30, 2014 | |||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | ||||||||||||||||
investment | recognized | investment | recognized | |||||||||||||||||
Uncovered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 17,257 | $ | 177 | $ | 17,387 | $ | 505 | ||||||||||||
Commercial real estate | 10,365 | 74 | 11,324 | 586 | ||||||||||||||||
Commercial and industrial | 13,130 | 124 | 13,452 | 497 | ||||||||||||||||
Consumer | 308 | 7 | 288 | 14 | ||||||||||||||||
Total uncovered individually evaluated impaired loans | $ | 41,060 | $ | 382 | $ | 42,451 | $ | 1,602 | ||||||||||||
Covered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 4,537 | $ | 69 | $ | 4,573 | $ | 206 | ||||||||||||
Commercial real estate | 17,344 | 294 | 17,488 | 806 | ||||||||||||||||
Commercial and industrial | 1,789 | 18 | 1,795 | 51 | ||||||||||||||||
Real estate construction | 767 | 11 | 965 | 52 | ||||||||||||||||
Consumer | 14 | 1 | 19 | 3 | ||||||||||||||||
Total covered individually evaluated impaired loans | $ | 24,451 | $ | 393 | $ | 24,840 | $ | 1,118 | ||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | ||||||||||||||||
investment | recognized | investment | recognized | |||||||||||||||||
Uncovered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 4,970 | $ | — | $ | 4,760 | $ | — | ||||||||||||
Commercial real estate | 7,545 | 147 | 7,713 | 148 | ||||||||||||||||
Commercial and industrial | 1,280 | 19 | 1,387 | 68 | ||||||||||||||||
Real estate construction | 1,221 | — | 1,125 | — | ||||||||||||||||
Total uncovered individually evaluated impaired loans | $ | 15,016 | $ | 166 | $ | 14,985 | $ | 216 | ||||||||||||
Covered individually evaluated impaired loans | ||||||||||||||||||||
Residential real estate | $ | 891 | $ | 15 | $ | 893 | $ | 40 | ||||||||||||
Commercial real estate | 18,814 | 1,222 | 19,394 | 1,810 | ||||||||||||||||
Commercial and industrial | 6,330 | 37 | 6,545 | 153 | ||||||||||||||||
Real estate construction | 1,084 | 16 | 1,045 | 48 | ||||||||||||||||
Consumer | 18 | 1 | 19 | 2 | ||||||||||||||||
Total covered individually evaluated impaired loans | $ | 27,137 | $ | 1,291 | $ | 27,896 | $ | 2,053 | ||||||||||||
Uncovered loans | ' | |||||||||||||||||||
Allowance for loan losses | ' | |||||||||||||||||||
Schedule of changes in the allowance for loan losses and the allocation of the allowance for loans | ' | |||||||||||||||||||
(Dollars in thousands) | Residential real | Commercial | Commercial | Real estate | Consumer | Total | ||||||||||||||
estate | real estate | and industrial | construction | |||||||||||||||||
For the three months ended September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Balance at beginning of period | $ | 9,750 | $ | 7,846 | $ | 5,140 | $ | 1,398 | $ | 226 | $ | 24,360 | ||||||||
Provision for loan losses | 1,943 | 3,176 | 2,363 | 178 | 124 | 7,784 | ||||||||||||||
Gross charge-offs | (1,597 | ) | (1,783 | ) | (826 | ) | (210 | ) | (55 | ) | (4,471 | ) | ||||||||
Recoveries | 800 | 1,017 | 79 | — | 323 | 2,219 | ||||||||||||||
Net (charge-offs) recoveries | (797 | ) | (766 | ) | (747 | ) | (210 | ) | 268 | (2,252 | ) | |||||||||
Ending allowance for loan losses | $ | 10,896 | $ | 10,256 | 6,756 | $ | 1,366 | $ | 618 | $ | 29,892 | |||||||||
For the nine months ended September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Balance at beginning of period | $ | 7,708 | $ | 4,267 | $ | 3,404 | $ | 2,027 | $ | 340 | $ | 17,746 | ||||||||
Provision (benefit) for loan losses | 5,502 | 9,100 | 4,124 | (1,306 | ) | 7 | 17,427 | |||||||||||||
Gross charge-offs | (4,414 | ) | (6,612 | ) | (1,452 | ) | (319 | ) | (179 | ) | (12,976 | ) | ||||||||
Recoveries | 2,100 | 3,501 | 680 | 964 | 450 | 7,695 | ||||||||||||||
Net (charge-offs) recoveries | (2,314 | ) | (3,111 | ) | (772 | ) | 645 | 271 | (5,281 | ) | ||||||||||
Ending allowance for loan losses | $ | 10,896 | $ | 10,256 | $ | 6,756 | $ | 1,366 | $ | 618 | $ | 29,892 | ||||||||
As of September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,078 | $ | 723 | $ | 1,436 | $ | — | $ | 81 | $ | 3,318 | ||||||||
Collectively evaluated for impairment | 4,572 | 3,598 | 4,805 | 520 | 392 | 13,887 | ||||||||||||||
Accounted for under ASC 310-30 | 5,246 | 5,935 | 515 | 846 | 145 | 12,687 | ||||||||||||||
Allowance for loan losses - uncovered: | $ | 10,896 | $ | 10,256 | $ | 6,756 | $ | 1,366 | $ | 618 | $ | 29,892 | ||||||||
Balance of loans - uncovered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 16,975 | $ | 10,393 | $ | 12,891 | $ | — | $ | 299 | $ | 40,558 | ||||||||
Collectively evaluated for impairment | 1,163,437 | 995,962 | 760,884 | 94,203 | 90,130 | 3,104,616 | ||||||||||||||
Accounted for under ASC 310-30 | 250,527 | 207,006 | 17,092 | 8,717 | 2,817 | 486,159 | ||||||||||||||
Total uncovered loans | $ | 1,430,939 | $ | 1,213,361 | $ | 790,867 | $ | 102,920 | $ | 93,246 | $ | 3,631,333 | ||||||||
For the three months ended September 30, 2013 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Balance at beginning of peiod | $ | 3,258 | $ | 4,771 | $ | 3,608 | $ | 1,862 | $ | 475 | $ | 13,974 | ||||||||
Provision (benefit) for loan losses | 2,904 | (138 | ) | 73 | 152 | (139 | ) | 2,852 | ||||||||||||
Gross charge-offs | (2,314 | ) | (772 | ) | (623 | ) | (28 | ) | (266 | ) | (4,003 | ) | ||||||||
Recoveries | 1,906 | 185 | 129 | 170 | 407 | 2,797 | ||||||||||||||
Net (charge-offs) recoveries | (408 | ) | (587 | ) | (494 | ) | 142 | 141 | (1,206 | ) | ||||||||||
Ending allowance for loan losses | $ | 5,754 | $ | 4,046 | $ | 3,187 | $ | 2,156 | $ | 477 | $ | 15,620 | ||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Balance at beginning of period | $ | 2,059 | $ | 4,265 | $ | 4,162 | $ | 268 | $ | 191 | $ | 10,945 | ||||||||
Provision (benefit) for loan losses | 6,380 | 772 | (233 | ) | 1,789 | 243 | 8,951 | |||||||||||||
Gross charge-offs | (5,085 | ) | (1,561 | ) | (926 | ) | (96 | ) | (505 | ) | (8,173 | ) | ||||||||
Recoveries | 2,400 | 570 | 184 | 195 | 548 | 3,897 | ||||||||||||||
Net (charge-offs) recoveries | (2,685 | ) | (991 | ) | (742 | ) | 99 | 43 | (4,276 | ) | ||||||||||
Ending allowance for loan losses | $ | 5,754 | $ | 4,046 | $ | 3,187 | $ | 2,156 | $ | 477 | $ | 15,620 | ||||||||
(Dollars in thousands) | Residential | Commercial | Commercial | Real estate | Consumer | Total | ||||||||||||||
real estate | real estate | and industrial | construction | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Allowance for loan losses - uncovered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,923 | $ | — | $ | 284 | $ | — | $ | 1 | $ | 2,208 | ||||||||
Collectively evaluated for impairment | 2,697 | 2,862 | 2,959 | 2,025 | 224 | 10,767 | ||||||||||||||
Accounted for under ASC 310-30 | 3,088 | 1,405 | 161 | 2 | 115 | 4,771 | ||||||||||||||
Allowance for loan losses - uncovered: | $ | 7,708 | $ | 4,267 | $ | 3,404 | $ | 2,027 | $ | 340 | $ | 17,746 | ||||||||
Balance of loans - uncovered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 14,014 | $ | 4,588 | $ | 2,882 | $ | 359 | $ | 33 | $ | 21,876 | ||||||||
Collectively evaluated for impairment | 817,911 | 652,952 | 437,777 | 173,897 | 6,814 | 2,089,351 | ||||||||||||||
Accounted for under ASC 310-30 | 253,528 | 98,299 | 5,985 | 1,970 | 2,907 | 362,689 | ||||||||||||||
Total uncovered loans | $ | 1,085,453 | $ | 755,839 | $ | 446,644 | $ | 176,226 | $ | 9,754 | $ | 2,473,916 | ||||||||
Covered loans | ' | |||||||||||||||||||
Allowance for loan losses | ' | |||||||||||||||||||
Schedule of changes in the allowance for loan losses and the allocation of the allowance for loans | ' | |||||||||||||||||||
(Dollars in thousands) | Residential | Commercial | Commercial | Real estate | Consumer | Total | ||||||||||||||
real estate | real estate | and industrial | construction | |||||||||||||||||
For the three months ended September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - covered: | ||||||||||||||||||||
Balance at beginning of period | $ | 5,312 | $ | 21,275 | $ | 4,540 | $ | 1,519 | $ | 97 | $ | 32,743 | ||||||||
Provision (benefit) for loan losses | (1,412 | ) | (3,191 | ) | (1,132 | ) | (500 | ) | (40 | ) | (6,275 | ) | ||||||||
Gross charge-offs | (371 | ) | (3,106 | ) | (565 | ) | (219 | ) | (71 | ) | (4,332 | ) | ||||||||
Recoveries | 558 | 1,585 | 1,067 | 352 | 70 | 3,632 | ||||||||||||||
Net (charge-offs) recoveries | 187 | (1,521 | ) | 502 | 133 | (1 | ) | (700 | ) | |||||||||||
Ending allowance for loan losses | $ | 4,087 | $ | 16,563 | $ | 3,910 | $ | 1,152 | $ | 56 | $ | 25,768 | ||||||||
For the nine months ended September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses - covered: | ||||||||||||||||||||
Balance at beginning of period | $ | 4,696 | $ | 26,394 | $ | 7,227 | $ | 1,984 | $ | 80 | $ | 40,381 | ||||||||
Provision (benefit) for loan losses | (629 | ) | (11,030 | ) | (3,633 | ) | (678 | ) | (124 | ) | (16,094 | ) | ||||||||
Gross charge-offs | (1,646 | ) | (6,301 | ) | (3,092 | ) | (1,223 | ) | (148 | ) | (12,410 | ) | ||||||||
Recoveries | 1,666 | 7,500 | 3,408 | 1,069 | 248 | 13,891 | ||||||||||||||
Net (charge-offs) recoveries | 20 | 1,199 | 316 | (154 | ) | 100 | 1,481 | |||||||||||||
Ending allowance for loan losses | $ | 4,087 | $ | 16,563 | $ | 3,910 | $ | 1,152 | $ | 56 | $ | 25,768 | ||||||||
As of September 30, 2014 | ||||||||||||||||||||
Allowance for loan losses- covered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 351 | $ | 63 | $ | 80 | $ | 224 | $ | 1 | $ | 719 | ||||||||
Collectively evaluated for impairment | 133 | 158 | 517 | 14 | 1 | 823 | ||||||||||||||
Accounted for under ASC 310-30 | 3,603 | 16,342 | 3,313 | 914 | 54 | 24,226 | ||||||||||||||
Allowance for loan losses | $ | 4,087 | $ | 16,563 | $ | 3,910 | $ | 1,152 | $ | 56 | $ | 25,768 | ||||||||
Balance of covered loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 4,522 | $ | 17,243 | $ | 1,780 | $ | 776 | $ | 13 | $ | 24,334 | ||||||||
Collectively evaluated for impairment | 17,943 | 5,059 | 12,495 | 427 | 120 | 36,044 | ||||||||||||||
Accounted for under ASC 310-30 | 90,763 | 197,194 | 32,977 | 12,531 | 9,949 | 343,414 | ||||||||||||||
Total covered loans | $ | 113,228 | $ | 219,496 | $ | 47,252 | $ | 13,734 | $ | 10,082 | $ | 403,792 | ||||||||
For the three months ended September 30, 2013 | ||||||||||||||||||||
Allowance for loan losses - covered: | ||||||||||||||||||||
Balance at beginning of period | $ | 4,951 | $ | 27,387 | $ | 10,512 | $ | 3,359 | $ | 103 | $ | 46,312 | ||||||||
Provision (benefit) for loan losses | 274 | (204 | ) | (268 | ) | (492 | ) | (37 | ) | (727 | ) | |||||||||
Gross charge-offs | (963 | ) | (2,451 | ) | (2,112 | ) | (803 | ) | (85 | ) | (6,414 | ) | ||||||||
Recoveries | 373 | 1,804 | 569 | 543 | 113 | 3,402 | ||||||||||||||
Net (charge-offs) recoveries | (590 | ) | (647 | ) | (1,543 | ) | (260 | ) | 28 | (3,012 | ) | |||||||||
Ending allowance for loan losses | $ | 4,635 | $ | 26,536 | $ | 8,701 | $ | 2,607 | $ | 94 | $ | 42,573 | ||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||||||
Allowance for loan losses - covered: | ||||||||||||||||||||
Balance at beginning of period | $ | 5,716 | $ | 30,150 | $ | 10,915 | $ | 4,509 | $ | 183 | $ | 51,473 | ||||||||
Provision (benefit) for loan losses | — | (4,205 | ) | (1,178 | ) | (1,516 | ) | (204 | ) | (7,103 | ) | |||||||||
Gross charge-offs | (2,183 | ) | (8,291 | ) | (3,818 | ) | (1,613 | ) | (179 | ) | (16,084 | ) | ||||||||
Recoveries | 1,102 | 8,882 | 2,782 | 1,227 | 294 | 14,287 | ||||||||||||||
Net (charge-offs) recoveries | (1,081 | ) | 591 | (1,036 | ) | (386 | ) | 115 | (1,797 | ) | ||||||||||
Ending allowance for loan losses | $ | 4,635 | $ | 26,536 | $ | 8,701 | $ | 2,607 | $ | 94 | $ | 42,573 | ||||||||
(Dollars in thousands) | Residential | Commercial | Commercial | Real estate | Consumer | Total | ||||||||||||||
real estate | real estate | and industrial | construction | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Allowance for loan losses- covered: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 360 | $ | 230 | $ | 937 | $ | — | $ | 2 | $ | 1,529 | ||||||||
Collectively evaluated for impairment | 192 | 3,010 | 471 | 108 | 1 | 3,782 | ||||||||||||||
Accounted for under ASC 310-30 | 4,144 | 23,154 | 5,819 | 1,876 | 77 | 35,070 | ||||||||||||||
Allowance for loan losses | $ | 4,696 | $ | 26,394 | $ | 7,227 | $ | 1,984 | $ | 80 | $ | 40,381 | ||||||||
Balance of covered loans: | ||||||||||||||||||||
Individually evaluated for impairment | $ | 2,678 | $ | 18,062 | $ | 5,121 | $ | 1,138 | $ | 25 | $ | 27,024 | ||||||||
Collectively evaluated for impairment | 20,622 | 18,570 | 21,909 | 812 | 145 | 62,058 | ||||||||||||||
Accounted for under ASC 310-30 | 100,034 | 262,769 | 51,407 | 15,268 | 11,508 | 440,986 | ||||||||||||||
Total covered loans | $ | 123,334 | $ | 299,401 | $ | 78,437 | $ | 17,218 | $ | 11,678 | $ | 530,068 |
ACQUIRED_LOANS_AND_LOSS_SHARE_1
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | ' | |||||||||||||
Schedule of changes in the carrying amount of accretable discount for purchased loans | ' | |||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Balance at beginning of period | $ | 305,592 | $ | 325,724 | $ | 302,287 | $ | 216,970 | ||||||
Additions due to acquisitions | — | — | 32,764 | 158,221 | ||||||||||
Discount accretion | (22,417 | ) | (24,023 | ) | (68,249 | ) | (75,582 | ) | ||||||
Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations | 32,004 | 24,407 | 72,911 | 64,856 | ||||||||||
Other activity, net (1) | (14,584 | ) | (10,276 | ) | (39,118 | ) | (48,633 | ) | ||||||
Balance at end of period | $ | 300,595 | $ | 315,832 | $ | 300,595 | $ | 315,832 | ||||||
(1) Primarily includes changes in the accretable discount due to loan payoffs, foreclosures and charge-offs. | ||||||||||||||
Summary of composition of the recorded investment for loans | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||
Contractual cash flows | $ | 1,397,034 | $ | 1,357,070 | ||||||||||
Non-accretable difference | (266,866 | ) | (251,108 | ) | ||||||||||
Accretable yield | (300,595 | ) | (302,287 | ) | ||||||||||
Loans accounted for under ASC 310-30 | $ | 829,573 | $ | 803,675 | ||||||||||
Schedule of the components and impact of the provision for loan losses-covered and the related FDIC loss sharing income | ' | |||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Provision (benefit) for loan losses - covered: | ||||||||||||||
Impairment (benefit) recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) | $ | (1,329 | ) | $ | 1,615 | $ | 1,036 | $ | 9,989 | |||||
Additional benefit recorded, net of charge-offs, for covered loans | (4,946 | ) | (2,342 | ) | (17,130 | ) | (17,092 | ) | ||||||
Total provision (benefit) for loan losses-covered | $ | (6,275 | ) | $ | (727 | ) | $ | (16,094 | ) | $ | (7,103 | ) | ||
Less: FDIC loss share income: | ||||||||||||||
Income recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) | 176 | 875 | 3,680 | 4,481 | ||||||||||
Expense recorded, to offset provision (benefit), for covered loans | (2,978 | ) | (1,874 | ) | (10,445 | ) | (13,674 | ) | ||||||
Total loss sharing expense due to provision for loan losses-covered | (2,802 | ) | (999 | ) | (6,765 | ) | (9,193 | ) | ||||||
Net (increase) decrease to income before taxes: | ||||||||||||||
Net (income) expense recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) | (1,505 | ) | 740 | (2,644 | ) | 5,508 | ||||||||
Net (income) expense recorded, for covered loans including those accounted for under ASC 310-20 and ASC 310-40 | (1,968 | ) | (468 | ) | (6,685 | ) | (3,418 | ) | ||||||
Net (increase) decrease to income before taxes | $ | (3,473 | ) | $ | 272 | $ | (9,329 | ) | $ | 2,090 | ||||
(1) The results of re-estimations also included cash flow improvements to be recognized prospectively as an adjustment to the accretable yield on the loan related to covered loans of $17.4 million and $6.8 million for the three months ended September 30, 2014 and 2013, respectively, and $33.9 million and $38.5 million for the nine months ended September 30, 2014, and 2013, respectively. | ||||||||||||||
Summary of the activity related to the FDIC indemnification asset and the FDIC receivable | ' | |||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, 2014 | September 30, 2014 | |||||||||||||
(Dollars in thousands) | FDIC | FDIC | FDIC | FDIC | ||||||||||
Indemnification | Receivable | Indemnification | Receivable | |||||||||||
Asset | Asset | |||||||||||||
Balance at beginning of period | $ | 102,694 | $ | 7,198 | $ | 131,861 | $ | 7,783 | ||||||
Accretion | (6,663 | ) | — | (18,887 | ) | — | ||||||||
Sales and write-downs of other real estate owned (covered) | (88 | ) | 233 | (841 | ) | (14 | ) | |||||||
Net effect of change in allowance on covered assets (1) | (5,484 | ) | — | (13,639 | ) | — | ||||||||
Reimbursements requested from FDIC (reclassification to FDIC receivable) | (8,018 | ) | 8,018 | (16,053 | ) | 16,053 | ||||||||
Decrease due to recoveries net of additional claimable expenses incurred (2) | — | (269 | ) | — | (4,588 | ) | ||||||||
Claim payments received from the FDIC | — | (2,307 | ) | — | (6,361 | ) | ||||||||
Balance at end of period | $ | 82,441 | $ | 12,873 | $ | 82,441 | $ | 12,873 | ||||||
(1) Primarily includes adjustments for fully claimed and exited loans and the results of remeasurement of expected cash flows under ASC 310-30 accounting. | ||||||||||||||
(2) Includes expenses associated with maintaining the underlying properties and legal fees. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
(Dollars in thousands) | FDIC | FDIC | FDIC | FDIC | ||||||||||
Indemnification | Receivable | Indemnification | Receivable | |||||||||||
Asset | Asset | |||||||||||||
Balance at beginning of period | $ | 171,956 | $ | 17,573 | $ | 226,356 | $ | 17,999 | ||||||
Accretion | (6,032 | ) | — | (21,088 | ) | — | ||||||||
Sales and write-downs of other real estate owned (covered) | (1,070 | ) | 861 | (3,388 | ) | 2,288 | ||||||||
Net effect of change in allowance on covered assets (1) | (8,179 | ) | — | (29,052 | ) | — | ||||||||
Reimbursements requested from FDIC (reclassification to FDIC receivable) | (8,350 | ) | 8,350 | (24,503 | ) | 24,503 | ||||||||
Decrease due to additional claimable expenses incurred net of recoveries (2) | — | (2,713 | ) | — | (2,326 | ) | ||||||||
Claim payments received from the FDIC | — | (10,541 | ) | — | (28,934 | ) | ||||||||
Balance at end of period | $ | 148,325 | $ | 13,530 | $ | 148,325 | $ | 13,530 | ||||||
(1) Primarily includes adjustments for fully claimed and exited loans and the results of remeasurement of expected cash flows under ASC 310-30 accounting. | ||||||||||||||
(2) Includes expenses associated with maintaining the underlying properties and legal fees. |
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
Tabular disclosure of the changes in non-covered and covered other real estate on properties owned | ' | ||||||||||
(Dollars in thousands) | Uncovered | Covered | Total | ||||||||
Balance at January 1, 2014 | $ | 18,384 | $ | 11,571 | $ | 29,955 | |||||
Additions due to acquisitions | 30,878 | — | 30,878 | ||||||||
Transferred to other real estate owned (1) | 10,889 | 7,989 | 18,878 | ||||||||
Disposals | (24,116 | ) | (6,189 | ) | (30,305 | ) | |||||
Write-downs | (2,861 | ) | (1,605 | ) | (4,466 | ) | |||||
Balance at September 30, 2014 | $ | 33,174 | $ | 11,766 | $ | 44,940 | |||||
Balance at January 1, 2013 | $ | 869 | $ | 23,834 | $ | 24,703 | |||||
Additions due to acquisitions | 18,448 | — | 18,448 | ||||||||
Transferred to other real estate owned (1) | 8,598 | 10,634 | 19,232 | ||||||||
Disposals | (9,995 | ) | (13,293 | ) | (23,288 | ) | |||||
Write-downs | (1,408 | ) | (4,314 | ) | (5,722 | ) | |||||
Balance at September 30, 2013 | $ | 16,512 | $ | 16,861 | $ | 33,373 | |||||
(1) Includes loans transferred to other real estate owned and transfers to other real estate owned due to branch or building operation closings/consolidations. | |||||||||||
Schedule of income and expenses related to other real estate owned | ' | ||||||||||
(Dollars in thousands) | Uncovered | Covered | Total | ||||||||
For the three months ended September 30, 2014 | |||||||||||
Net gain on sale | $ | 2,367 | $ | 60 | $ | 2,427 | |||||
Write-downs | (1,361 | ) | (701 | ) | (2,062 | ) | |||||
Net operating expenses | (778 | ) | (60 | ) | (838 | ) | |||||
Total | $ | 228 | $ | (701 | ) | $ | (473 | ) | |||
For the nine months ended September 30, 2014 | |||||||||||
Net gain on sale | $ | 6,369 | $ | 291 | $ | 6,660 | |||||
Write-downs | (2,861 | ) | (1,605 | ) | (4,466 | ) | |||||
Net operating expenses | (2,323 | ) | (133 | ) | (2,456 | ) | |||||
Total | $ | 1,185 | $ | (1,447 | ) | $ | (262 | ) | |||
For the three months ended September 30, 2013 | |||||||||||
Net gain on sale | $ | 43 | $ | 510 | $ | 553 | |||||
Write-downs | (155 | ) | (2,008 | ) | (2,163 | ) | |||||
Net operating (expenses) income | (200 | ) | 27 | (173 | ) | ||||||
Total | $ | (312 | ) | $ | (1,471 | ) | $ | (1,783 | ) | ||
For the nine months ended September 30, 2013 | |||||||||||
Net gain on sale | $ | 2,461 | $ | 636 | $ | 3,097 | |||||
Write-downs | (1,408 | ) | (4,314 | ) | (5,722 | ) | |||||
Net operating (expenses) income | (937 | ) | 118 | (819 | ) | ||||||
Total | $ | 116 | $ | (3,560 | ) | $ | (3,444 | ) |
CORE_DEPOSIT_INTANGIBLES_Table
CORE DEPOSIT INTANGIBLES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
CORE DEPOSIT INTANGIBLES | ' | |||||||
Schedule of the Company's net carrying amount of CDIs | ' | |||||||
September 30, | December 31, | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Gross carrying amount | $ | 20,658 | $ | 19,331 | ||||
Accumulated amortization | (6,962 | ) | (6,126 | ) | ||||
Net carrying amount | $ | 13,696 | $ | 13,205 |
LOAN_SERVICING_RIGHTS_Tables
LOAN SERVICING RIGHTS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
LOAN SERVICING RIGHTS | ' | |||||||||||||
Schedule of activity for loan servicing rights and the related fair value changes | ' | |||||||||||||
Commercial | ||||||||||||||
(Dollars in thousands) | Real Estate | Agricultural | Mortgage | Total | ||||||||||
For the three months ended September 30, 2014 | ||||||||||||||
Fair value, beginning of period | $ | 837 | $ | 876 | $ | 72,391 | $ | 74,104 | ||||||
Additions from loans sold with servicing retained | — | 2 | 2,296 | 2,298 | ||||||||||
Changes in fair value due to: | ||||||||||||||
Reductions from loans paid off during the period | (57 | ) | (83 | ) | (1,706 | ) | (1,846 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (18 | ) | (24 | ) | (134 | ) | (176 | ) | ||||||
Fair value, end of period | $ | 762 | $ | 771 | $ | 72,847 | $ | 74,380 | ||||||
For the nine months ended September 30, 2014 | ||||||||||||||
Fair value, beginning of period | $ | 368 | $ | 962 | $ | 77,273 | $ | 78,603 | ||||||
Additions due to acquisition | 767 | — | — | 767 | ||||||||||
Additions from loans sold with servicing retained | — | 125 | 5,921 | 6,046 | ||||||||||
Changes in fair value due to: | ||||||||||||||
Reductions from loans paid off during the period | (125 | ) | (220 | ) | (4,110 | ) | (4,455 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (248 | ) | (96 | ) | (6,237 | ) | (6,581 | ) | ||||||
Fair value, end of period | $ | 762 | $ | 771 | $ | 72,847 | $ | 74,380 | ||||||
Principal balance of loans serviced | $ | 222,262 | $ | 37,301 | $ | 7,069,937 | $ | 7,329,500 | ||||||
For the three months ended September 30, 2013 | ||||||||||||||
Fair value, beginning of period | $ | 438 | $ | 1,099 | $ | 63,650 | $ | 65,187 | ||||||
Additions from loans sold with servicing retained | — | 5 | 6,628 | 6,633 | ||||||||||
Changes in fair value due to: | ||||||||||||||
Reductions from loans paid off during the period | (6 | ) | (74 | ) | (1,576 | ) | (1,656 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (20 | ) | 15 | 1,592 | 1,587 | |||||||||
Fair value, end of period | $ | 412 | $ | 1,045 | $ | 70,294 | $ | 71,751 | ||||||
For the nine months ended September 30, 2013 | ||||||||||||||
Fair value, beginning of period | $ | 518 | $ | 1,456 | $ | 3,683 | $ | 5,657 | ||||||
Additions due to acquisition | — | — | 41,967 | 41,967 | ||||||||||
Additions from loans sold with servicing retained | — | 70 | 20,060 | 20,130 | ||||||||||
Changes in fair value due to: | ||||||||||||||
Reductions from loans paid off during the period | (10 | ) | (397 | ) | (4,167 | ) | (4,574 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (96 | ) | (84 | ) | 8,751 | 8,571 | ||||||||
Fair value, end of period | $ | 412 | $ | 1,045 | $ | 70,294 | $ | 71,751 | ||||||
Principal balance of loans serviced | $ | 281,091 | $ | 47,824 | $ | 7,022,362 | $ | 7,351,277 | ||||||
(1) Represents estimated fair value changes primarily due to prepayment speeds and market-driven changes in interest rates. | ||||||||||||||
Schedule of assumptions included in loan servicing rights | ' | |||||||||||||
Commercial | ||||||||||||||
Real Estate | Agricultural | Mortgage | ||||||||||||
As of September 30, 2014 | ||||||||||||||
Prepayment speed | 6.37 - 50.00% | 5.57 - 47.08% | 3.77 - 44.78% | |||||||||||
Weighted average (“WA”) discount rate | 19.47% | 15.00% | 9.65% | |||||||||||
WA cost to service/per year | $ | 470 | $ | 200 | $ | 57 | ||||||||
WA Ancillary income/per year | N/A | N/A | 36 | |||||||||||
WA float range | 0.56% | 0.56% | 1.15 - 1.83% | |||||||||||
As of December 31, 2013 | ||||||||||||||
Prepayment speed | 8.50-50.00% | 4.98-53.16% | 3.55-44.49% | |||||||||||
WA discount rate | 20.00% | 15.00% | 10.17% | |||||||||||
WA cost to service/per year | $ | 467 | $ | 200 | $ | 57 | ||||||||
WA Ancillary income/per year | N/A | N/A | 45 | |||||||||||
WA float range | 0.56% | 0.56% | 0.73-1.54% |
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
DERIVATIVE INSTRUMENTS | ' | |||||||||||||||
Schedule reflecting the amount and fair value of mortgage banking and customer initiated derivatives | ' | |||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
(Dollars in thousands) | Notional | Fair | Notional | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Included in “Other assets”: | ||||||||||||||||
Forward contracts related to mortgage loans to be delivered for sale | $ | — | $ | — | $ | 168,746 | $ | 1,484 | ||||||||
Interest rate lock commitments | 77,078 | 1,429 | 67,685 | 1,146 | ||||||||||||
Customer initiated derivatives | 16,387 | 369 | — | — | ||||||||||||
Total included in “Other assets” | $ | 93,465 | $ | 1,798 | $ | 236,431 | $ | 2,630 | ||||||||
Included in “Other liabilities”: | ||||||||||||||||
Forward contracts related to mortgage loans to be delivered for sale | $ | 167,795 | $ | 166 | $ | — | $ | — | ||||||||
Customer initiated derivatives | 13,764 | 195 | — | — | ||||||||||||
Total included in “Other liabilities” | $ | 181,559 | $ | 361 | $ | — | $ | — | ||||||||
Schedule reflecting the net gains (losses) relating to derivative instruments related to the changes in fair value | ' | |||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(Dollars in thousands) | Location of Gain (Loss) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Forward contracts related to mortgage loans to be delivered for sale | Net gain on sale of loans | $ | (463 | ) | $ | (3,741 | ) | $ | (10,372 | ) | $ | 22,386 | ||||
Interest rate lock commitments | Net gain on sale of loans | (853 | ) | 5,162 | 284 | (3,672 | ) | |||||||||
Customer-inititated derivatives | Other noninterest income | 4 | — | 23 | — | |||||||||||
Total gain (loss) recognized in income | $ | (1,312 | ) | $ | 1,421 | $ | (10,065 | ) | $ | 18,714 |
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
COMMITMENTS, CONTINGENCIES AND GUARANTEES | ' | |||||||||||||||||||
Summary of the contractual amounts of the entity's exposure to off-balance sheet risk | ' | |||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Fixed Rate | Variable Rate | Total | Fixed Rate | Variable Rate | Total | ||||||||||||||
Commitments to extend credit | $ | 591,410 | $ | 542,898 | $ | 1,134,308 | $ | 523,666 | $ | 216,473 | $ | 740,139 | ||||||||
Standby letters of credit | 69,169 | 4,037 | 73,206 | 68,452 | 561 | 69,013 | ||||||||||||||
Total commitments | $ | 660,579 | $ | 546,935 | $ | 1,207,514 | $ | 592,118 | $ | 217,034 | $ | 809,152 |
SHORTTERM_BORROWINGS_AND_LONGT1
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | ' | |||||||||||
Schedule of short-term borrowings and long-term debt | ' | |||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||
(Dollars in thousands) | Amount | Weighted | Amount | Weighted | ||||||||
Average Rate (1) | Average Rate (1) | |||||||||||
Short-term borrowings: | ||||||||||||
Securities sold under agreements to repurchase: 0.10%-0.28% floating-rate notes | $ | 80,573 | 0.21 | % | $ | 36,876 | 0.2 | % | ||||
FHLB advances: 0.31% fixed-rate notes | 50,000 | 0.31 | % | — | — | |||||||
FHLB advances: 0.07% floating-rate | 20,000 | 0.07 | % | — | — | |||||||
Holding company line of credit: floating-rate based on one-month LIBOR plus 2.85% | — | — | 35,000 | 3.17 | % | |||||||
Total short-term borrowings | 150,573 | 0.22 | % | 71,876 | 1.64 | % | ||||||
Long-term debt: | ||||||||||||
FHLB advances: 0.19% - 7.44% fixed-rate notes due April 2015 to 2027 (2) | 217,466 | 1.99 | % | 130,368 | 3.28 | % | ||||||
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 (3) | 56,853 | 4.19 | % | 58,079 | 4.19 | % | ||||||
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 1.45-2.85% due 2034 to 2035 (4) | 10,690 | 2.48 | % | 10,590 | 2.49 | % | ||||||
Total long-term debt | 285,009 | 2.45 | % | 199,037 | 3.5 | % | ||||||
Total short-term borrowings and long-term debt: | $ | 435,582 | 1.68 | % | $ | 270,913 | 3.01 | % | ||||
(1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. | ||||||||||||
(2) The September 30, 2014 balance includes advances payable of $210.2 million and purchase accounting premiums of $7.3 million. The December 31, 2013 balance includes advances payable of $121.2 million and purchase accounting premiums of $9.2 million. | ||||||||||||
(3) The September 30, 2014 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $6.9 million. The December 31, 2013 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $8.1 million. | ||||||||||||
(4) The September 30, 2014 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.3 million. The December 31, 2013 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.4 million. | ||||||||||||
Schedule of selected financial information pertaining to the components of short-term borrowings | ' | |||||||||||
For the three months ended | For the nine months ended | |||||||||||
(Dollars in thousands) | September 30, 2014 | September 30, 2014 | ||||||||||
Securities sold under agreement to repurchase: | ||||||||||||
Average daily balance | $ | 136,707 | $ | 97,156 | ||||||||
Average interest rate during the period | 0.14 | % | 0.12 | % | ||||||||
Maximum month-end balance | $ | 166,925 | $ | 166,925 | ||||||||
FHLB advances: | ||||||||||||
Average daily balance | $ | 82,935 | $ | 40,966 | ||||||||
Average interest rate during the period | 0.19 | % | 0.8 | % | ||||||||
Maximum month-end balance | $ | 70,000 | $ | 90,000 | ||||||||
Federal funds purchased: | ||||||||||||
Average daily balance | $ | 217 | $ | 1,568 | ||||||||
Average interest rate during the period | 0.31 | % | 0.27 | % | ||||||||
Interest rate at period end | N/A | -1 | N/A | -1 | ||||||||
Maximum month-end balance | $ | — | $ | — | ||||||||
FHLB overnight repurchase agreements: | ||||||||||||
Average daily balance | $ | — | $ | 2,931 | ||||||||
Average interest rate during the period | 0 | % | 0.1 | % | ||||||||
Interest rate at period end | N/A | -1 | N/A | -1 | ||||||||
Maximum month-end balance | $ | — | $ | — | ||||||||
Holding company line of credit: | ||||||||||||
Average daily balance | $ | — | $ | 7,436 | ||||||||
Average interest rate during the period | 0 | % | 0 | % | ||||||||
Interest rate at period end | N/A | -1 | N/A | -1 | ||||||||
Maximum month-end balance | $ | — | $ | 35,000 | ||||||||
(1) Federal funds purchased, FHLB overnight repurchase agreements and the holding company line of credit did not have oustanding balances at September 30, 2014. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
INCOME TAXES | ' | |||||||||||||||||||||
Schedule of current and deferred components of the provision for income taxes | ' | |||||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Current income tax expense (benefit) | ||||||||||||||||||||||
Federal | $ | 11,344 | $ | 4,409 | $ | (4,680 | ) | $ | 3,168 | |||||||||||||
State | 32 | 40 | (384 | ) | (614 | ) | ||||||||||||||||
Total current income tax expense (benefit) | 11,376 | 4,449 | (5,064 | ) | 2,554 | |||||||||||||||||
Deferred income tax expense (benefit) | ||||||||||||||||||||||
Federal | (2,215 | ) | (2,390 | ) | 17,313 | 3,153 | ||||||||||||||||
State | 743 | (110 | ) | 1,880 | 935 | |||||||||||||||||
Total deferred income tax expense (benefit) | (1,472 | ) | (2,500 | ) | 19,193 | 4,088 | ||||||||||||||||
Change in valuation allowance | — | (6,006 | ) | (10,127 | ) | (6,006 | ) | |||||||||||||||
Income tax provision (benefit) | $ | 9,904 | $ | (4,057 | ) | $ | 4,002 | $ | 636 | |||||||||||||
Schedule of reconciliation of expected income tax expense (benefit) at the federal statutory rate to the Company's provision for income taxes and effective tax rate | ' | |||||||||||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||
Tax based on federal statutory rate | $ | 10,297 | 35 | % | $ | 2,270 | 35 | % | $ | 28,823 | 35 | % | $ | 30,324 | 35 | % | ||||||
Effect of: | ||||||||||||||||||||||
Tax exempt income | (521 | ) | (1.8 | ) | (405 | ) | (6.3 | ) | (1,723 | ) | (2.1 | ) | (1,284 | ) | (1.5 | ) | ||||||
State taxes, net of federal benefit | 666 | 2.3 | (46 | ) | (0.7 | ) | 1,135 | 1.4 | 208 | 0.2 | ||||||||||||
Change in valuation allowance | — | — | (6,006 | ) | (92.6 | ) | (10,127 | ) | (12.3 | ) | (6,006 | ) | (6.9 | ) | ||||||||
Bargain purchase gain | — | — | — | — | (14,692 | ) | (17.8 | ) | (25,096 | ) | (29.0 | ) | ||||||||||
Transaction costs | — | — | — | — | 454 | 0.5 | 2,581 | 3 | ||||||||||||||
Other, net | (538 | ) | (1.8 | ) | 130 | 2.1 | 132 | 0.2 | (91 | ) | (0.1 | ) | ||||||||||
Income tax expense (benefit) | $ | 9,904 | 33.7 | % | $ | (4,057 | ) | (62.5 | )% | $ | 4,002 | 4.9 | % | $ | 636 | 0.7 | % | |||||
Schedule of significant components of the deferred tax assets and liabilities | ' | |||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||
Allowance for loan losses | $ | 50,512 | $ | 51,527 | ||||||||||||||||||
Other real estate losses | 6,797 | 3,702 | ||||||||||||||||||||
Organizational costs | 282 | 311 | ||||||||||||||||||||
Accrued stock-based compensation | 5,764 | 5,926 | ||||||||||||||||||||
Accrued expenses | 478 | — | ||||||||||||||||||||
Loss and tax credit carry forwards | 32,345 | 19,298 | ||||||||||||||||||||
Other reserves | 2,076 | 1,988 | ||||||||||||||||||||
Goodwill and other intangibles | 1,348 | 1,494 | ||||||||||||||||||||
Nonaccrual interest | 10,389 | 10,150 | ||||||||||||||||||||
Business combination adjustments | 60,940 | 41,742 | ||||||||||||||||||||
Net unrealized loss on available for sale securities | — | 4,306 | ||||||||||||||||||||
Other | 543 | — | ||||||||||||||||||||
Total deferred tax assets | 171,474 | 140,444 | ||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||
Depreciation | 2,154 | 3,996 | ||||||||||||||||||||
FHLB stock dividends | 260 | 1,541 | ||||||||||||||||||||
Deferred loan fees | 484 | 1,229 | ||||||||||||||||||||
Prepaid expenses | — | 799 | ||||||||||||||||||||
Net unrealized gain on available for sale securities | 1,124 | — | ||||||||||||||||||||
Loan servicing rights | 26,392 | 27,334 | ||||||||||||||||||||
Other | — | 247 | ||||||||||||||||||||
Total deferred tax liabilities | 30,414 | 35,146 | ||||||||||||||||||||
Net deferred tax asset before valuation allowance | 141,060 | 105,298 | ||||||||||||||||||||
Valuation allowance | — | (10,127 | ) | |||||||||||||||||||
Net deferred tax asset | $ | 141,060 | $ | 95,171 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||
Schedule of weighted-average assumptions used in determination of the fair value of options granted | ' | ||||||||||
For the nine months ended September 30, | |||||||||||
2014 | 2013 | ||||||||||
Fair value of options granted | $ | 4.77 | $ | 2.13 | |||||||
Expected volatility | 30.02 | % | 24.37 | % | |||||||
Risk-free interest rate | 1.98 | % | 0.97 | % | |||||||
Expected life (in years) | 6 | 6 | |||||||||
Summary of activity in the Plan | ' | ||||||||||
Weighted Average | |||||||||||
Number | Exercise | Remaining | Aggregate | ||||||||
of Shares | Price per | Contractual Life | Intrinsic Value | ||||||||
(in thousands) | Share | (in years) | (in thousands) | ||||||||
Outstanding at January 1, 2014 | 8,441 | $ | 6.88 | ||||||||
Granted | 35 | 14.44 | |||||||||
Exercised (1) | (453 | ) | 5.92 | ||||||||
Forfeited or expired | (2 | ) | 7.25 | ||||||||
Outstanding at September 30, 2014 | 8,021 | 6.96 | 6.96 | 55,107 | |||||||
Options fully vested and expected to vest | 8,021 | 6.96 | 6.96 | 55,107 | |||||||
Exercisable at September 30, 2014 | 7,950 | 6.96 | 6.96 | 54,619 | |||||||
(1) Options exercised during the nine months ended September 30, 2014 had a weighted average fair value of $13.74, at respective exercise dates. In the nine months ended September 30, 2014, there were 163 thousand shares issued under the net-settlement option. Total cash received from option exercises during the nine months ended September 30, 2014 was $143 thousand resulting in the issuance of 25 thousand shares. | |||||||||||
Summary of changes in the Company's nonvested shares | ' | ||||||||||
Nonvested Shares | Shares | Weighted-Average | |||||||||
(in thousands) | Grant-Date Fair Value | ||||||||||
Nonvested at January 1, 2014 | 348 | $ | 2.24 | ||||||||
Granted | 35 | ||||||||||
Vested | 310 | ||||||||||
Forfeited | 2 | ||||||||||
Nonvested at September 30, 2014 | 71 | $ | 2.21 | ||||||||
Schedule of nonvested restricted stock awards | ' | ||||||||||
Nonvested Restricted Stock Awards | Shares | Weighted-Average | |||||||||
(in thousands) | Grant-Date Fair Value | ||||||||||
Nonvested at January 1, 2014 | — | ||||||||||
Granted | 377,800 | 14.44 | |||||||||
Nonvested at September 30, 2014 | 377,800 | $ | 14.44 | ||||||||
REGULATORY_CAPITAL_MATTERS_Tab
REGULATORY CAPITAL MATTERS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
REGULATORY CAPITAL MATTERS | ' | ||||||||||||||||
Summary of actual and required capital amounts and ratios | ' | ||||||||||||||||
Actual | For Capital | To Be Well | |||||||||||||||
Adequacy | Capitalized Under | ||||||||||||||||
Purposes | Prompt Corrective | ||||||||||||||||
Action Provisions | |||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
September 30, 2014 | |||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | $ | 695,380 | 16.8 | % | $ | 331,998 | 8 | % | N/A | N/A | |||||||
Talmer Bank and Trust | 602,480 | 16.7 | 289,526 | 8 | $ | 361,907 | 10 | % | |||||||||
Talmer West Bank (1) | 97,123 | 18.5 | 41,930 | 8 | N/A | N/A | |||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 645,796 | 15.6 | 165,999 | 4 | N/A | N/A | |||||||||||
Talmer Bank and Trust | 557,105 | 15.4 | 144,763 | 4 | 217,144 | 6 | |||||||||||
Talmer West Bank (1) | 92,949 | 17.7 | 20,965 | 4 | N/A | N/A | |||||||||||
Tier 1 leverage ratio | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 645,796 | 11.5 | 225,513 | 4 | N/A | N/A | |||||||||||
Talmer Bank and Trust | 557,105 | 11.5 | 193,575 | 4 | 241,969 | 5 | |||||||||||
Talmer West Bank (1) | 92,949 | 11.6 | 32,116 | 4 | N/A | N/A | |||||||||||
December 31, 2013 | |||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | $ | 583,370 | 19.2 | % | $ | 242,885 | 8 | % | N/A | N/A | |||||||
Talmer Bank and Trust | 253,044 | 18.4 | 110,123 | 8 | $ | 137,654 | 10 | % | |||||||||
First Place Bank (2) | 263,297 | 15.9 | 132,207 | 8 | N/A | N/A | |||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 555,350 | 18.3 | 121,443 | 4 | N/A | N/A | |||||||||||
Talmer Bank and Trust | 235,448 | 17.1 | 55,062 | 4 | 82,593 | 6 | |||||||||||
First Place Bank (2) | 252,873 | 15.3 | 66,104 | 4 | N/A | N/A | |||||||||||
Tier 1 leverage ratio | |||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 555,350 | 12.2 | 182,221 | 4 | N/A | N/A | |||||||||||
Talmer Bank and Trust | 235,448 | 10.3 | 91,363 | 4 | 114,204 | 5 | |||||||||||
First Place Bank (2) | 252,873 | 11.7 | 86,521 | 4 | N/A | N/A | |||||||||||
(1) Notwithstanding its capital levels, Talmer West Bank will not be categorized as well capitalized while it is subject to the Consent Order. | |||||||||||||||||
(2) Notwithstanding its capital levels, First Place Bank was not categorized as well capitalized while it was subject to the Cease and Desist Order. On February 10, 2014, First Place Bank was merged with and into Talmer Bank and Trust and the Cease and Desist Order had no further force or effect. |
PARENT_COMPANY_FINANCIAL_STATE1
PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
PARENT COMPANY FINANCIAL STATEMENTS | ' | |||||||||||||
Balance Sheets | ' | |||||||||||||
Balance Sheets - Parent Co. | ||||||||||||||
September 30, | December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 11,414 | $ | 98,411 | ||||||||||
Investment in banking subsidiaries | 741,496 | 562,381 | ||||||||||||
Income tax benefit | 5,393 | 5,404 | ||||||||||||
Other assets | 1,232 | 1,783 | ||||||||||||
Total assets | $ | 759,535 | $ | 667,979 | ||||||||||
Liabilities | ||||||||||||||
Short-term borrowings | $ | — | $ | 35,000 | ||||||||||
Long-term debt | 10,690 | 10,590 | ||||||||||||
Accrued expenses and other liabilities | 2,193 | 5,374 | ||||||||||||
Total liabilities | 12,883 | 50,964 | ||||||||||||
Shareholders’ equity | 746,652 | 617,015 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 759,535 | $ | 667,979 | ||||||||||
Statements of Income | ' | |||||||||||||
Statements of Income and Comprehensive Income - Parent Co. | ||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Income | ||||||||||||||
Dividend income from subsidiary | $ | — | $ | — | $ | 25,000 | $ | 55,000 | ||||||
Bargain purchase gain | — | — | 41,977 | 71,702 | ||||||||||
Other noninterest income | 3 | 3 | 8 | 10 | ||||||||||
Total income | 3 | 3 | 66,985 | 126,712 | ||||||||||
Expenses | ||||||||||||||
Salaries and employee benefits | 1,040 | 73 | 6,995 | 18,433 | ||||||||||
Bank acquisition and due diligence fees | 238 | 111 | 2,212 | 7,702 | ||||||||||
Professional services | 455 | 241 | 1,541 | 1,175 | ||||||||||
Marketing expense | 31 | 3 | 222 | 1,027 | ||||||||||
Interest on long-term debt | 128 | 128 | 380 | 424 | ||||||||||
Other | 250 | 105 | 765 | 343 | ||||||||||
Total expenses | 2,142 | 661 | 12,266 | 29,104 | ||||||||||
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries | (2,139 | ) | (658 | ) | 54,719 | 97,608 | ||||||||
Income tax benefit | 533 | 202 | 2,990 | 7,570 | ||||||||||
Equity in (over)/under distributed earnings of subsidiaries | 21,121 | 11,000 | 20,639 | (19,173 | ) | |||||||||
Net income | $ | 19,515 | $ | 10,544 | $ | 78,348 | $ | 86,005 | ||||||
Total comprehensive income, net of tax | $ | 19,515 | $ | 10,544 | $ | 78,348 | $ | 86,005 | ||||||
Statements of Cash Flows | ' | |||||||||||||
Statements of Cash Flows - Parent Co. | ||||||||||||||
For the nine months ended September 30, | ||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 78,348 | $ | 86,005 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Equity in (over)/under distributed earnings of subsidiaries | (45,639 | ) | (35,827 | ) | ||||||||||
Gain on acquisition | (41,977 | ) | (71,702 | ) | ||||||||||
Stock-based compensation expense | 382 | 8,314 | ||||||||||||
Decrease in income tax benefit | 11 | 2,331 | ||||||||||||
Decrease in other assets, net | 551 | 9,934 | ||||||||||||
Increase (decrease) in accrued expenses and other liabilities, net | (3,081 | ) | 2,617 | |||||||||||
Net cash from (used in) operating activities | (11,405 | ) | 1,672 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Cash (used in) proceeds from acquisitions | (6,500 | ) | (45,000 | ) | ||||||||||
Capital contributions to subsidiaries | (99,500 | ) | (179,000 | ) | ||||||||||
Dividends received from subsidiaries | 25,000 | 55,000 | ||||||||||||
Net cash used in investing activities | (81,000 | ) | (169,000 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||
Issuance of common stock | 41,112 | — | ||||||||||||
Repayment of senior unsecured line of credit | (35,000 | ) | — | |||||||||||
Cash dividends paid on common stock ($.01 per share) | (704 | ) | — | |||||||||||
Net cash from financing activities | 5,408 | — | ||||||||||||
Net decrease in cash and cash equivalents | (86,997 | ) | (167,328 | ) | ||||||||||
Beginning cash and cash equivalents | 98,411 | 211,849 | ||||||||||||
Ending cash and cash equivalents | $ | 11,414 | $ | 44,521 |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||
Schedule of factors used in the earnings per share computation | ' | |||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Net income | $ | 19,515 | $ | 10,544 | $ | 78,348 | $ | 86,005 | ||||||
Net income allocated to participating securities | 105 | — | 178 | — | ||||||||||
Net income allocated to common shareholders (1) | $ | 19,410 | $ | 10,544 | $ | 78,170 | $ | 86,005 | ||||||
Weighted average common shares - issued | 70,470 | 66,229 | 69,570 | 66,229 | ||||||||||
Average unvested restricted share awards | (378 | ) | — | (156 | ) | — | ||||||||
Weighted average common shares outstanding - basic | 70,092 | 66,229 | 69,414 | 66,229 | ||||||||||
Effect of dilutive securities - | ||||||||||||||
Employee and director stock options | 4,102 | 2,637 | 4,034 | 2,576 | ||||||||||
Warrants | 1,558 | 987 | 1,500 | 987 | ||||||||||
Weighted average common shares outstanding - diluted | 75,752 | 69,853 | 74,948 | 69,792 | ||||||||||
EPS available to common shareholders | ||||||||||||||
Basic | $ | 0.28 | $ | 0.16 | $ | 1.13 | $ | 1.3 | ||||||
Diluted | $ | 0.26 | $ | 0.15 | $ | 1.04 | $ | 1.23 | ||||||
(1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options and warrants to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share. | ||||||||||||||
Schedule of average outstanding options and warrants | ' | |||||||||||||
For the three months ended | For the nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Shares in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Average outstanding options | 35 | 75 | 14 | 29 | ||||||||||
Outstanding exercise prices: | ||||||||||||||
Low end | $ | 14.44 | $ | 10 | $ | 14.44 | $ | 10 | ||||||
High end | $ | 14.44 | $ | 10 | $ | 14.44 | $ | 10 | ||||||
Average outstanding warrants | — | 39 | — | 39 | ||||||||||
Outstanding exercise prices: | ||||||||||||||
Low end | $ | 10 | $ | 10 | ||||||||||
High end | $ | 10 | $ | 10 |
BASIS_OF_PRESENTATION_AND_RECE1
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS (Details) (Class A common stock, USD $) | 0 Months Ended | |
In Millions, except Share data, unless otherwise specified | Feb. 21, 2014 | Feb. 14, 2014 |
Class A common stock | ' | ' |
Stock issuances and other information | ' | ' |
Aggregate number of shares of common stock sold in initial public offering by the company and certain shareholders | ' | 15,555,555 |
Stock price assumed (in dollars per share) | ' | $13 |
Number of shares of common stock sold | ' | 3,703,703 |
Number of shares of stock sold by the selling shareholders | ' | 11,851,852 |
Number of shares of common stock sold by the selling shareholders pursuant to an option granted to the underwriters to cover over-allotments | 2,333,333 | ' |
Net proceeds from initial public offering after deducting the underwriting discounts and commissions and estimated offering expenses | ' | $42 |
BASIS_OF_PRESENTATION_AND_RECE2
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Aug. 08, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | Jul. 18, 2014 | Jul. 08, 2014 | Sep. 30, 2014 | Aug. 08, 2014 | |
derivative | derivative | Branch offices in Wisconsin | Branch offices in Wisconsin | First of Huron Corporation | First of Huron Corporation | Branch office in Albuquerque, New Mexico | Branch office in Albuquerque, New Mexico | Branch office in Albuquerque, New Mexico | Branch locations and related deposits in Kenosha and Genoa City | ||||
branch | Signature Bank | Signature Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Town Bank | |||||||
branch | branch | ||||||||||||
Subsequent Events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,100,000 | ' | ' | ' |
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,700,000 | ' | ' | ' |
Pre-tax income | 29,419,000 | 6,487,000 | 82,350,000 | 86,641,000 | ' | ' | 12,800,000 | ' | ' | ' | ' | 1,600,000 | ' |
Number of branch offices sold | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | 1 | ' | 2 |
Deposits | 4,485,597,000 | ' | 4,485,597,000 | ' | 3,600,837,000 | 354,800,000 | ' | ' | ' | ' | ' | ' | ' |
Core deposit intangibles related to deposits sold | ' | ' | ' | ' | ' | 911,000 | ' | ' | ' | 91,000 | ' | ' | ' |
Expected transaction costs | ' | ' | ' | ' | ' | 248,000 | ' | ' | ' | 170,000 | ' | ' | ' |
Aggregate cash consideration | ' | ' | ' | ' | ' | ' | ' | 13,400,000 | ' | ' | ' | ' | ' |
Total assets | 5,744,170,000 | ' | 5,744,170,000 | ' | 4,547,361,000 | ' | ' | ' | 233,500,000 | ' | ' | ' | ' |
Net total loans | $3,979,465,000 | ' | $3,979,465,000 | ' | $2,945,857,000 | ' | ' | ' | $172,900,000 | ' | ' | ' | ' |
Customer Initiated Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of derivatives designated as qualifying accounting hedging instruments | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BUSINESS_COMBINATIONS_Details
BUSINESS COMBINATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 02, 2014 | Dec. 31, 2013 | Jan. 02, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 02, 2014 | Jan. 02, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 02, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Mar. 31, 2014 | Jan. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 02, 2013 | Jan. 02, 2013 | Jan. 02, 2013 | Sep. 30, 2014 | |
Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Financial Commerce Corporation's wholly-owned subsidiary banks and Capital Bancorp Ltd. | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | Talmer West Bank | First Place Bank | First Place Bank | First Place Bank | First Place Bank | First Place Bank | First Place Bank | Capital Bancorp Ltd. | ||||||||
branch | Purchase price adjustment | Purchase price adjustment | Purchase price adjustment | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Core deposit | Senior unsecured line of credit | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Core deposit | Purchase price adjustment | |||||||||||||||||||
BUSINESS COMBINATIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of capital stock purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,000,000 | $6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45,000,000 | ' | ' | ' | ' | ' | ' |
Payment to fund escrow account | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional capital contributed in order to recapitalize | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 179,000,000 | ' | ' | ' | ' | ' | ' |
Amount borrowed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' |
Amount of net proceeds from the initial public offering used for repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' |
Subordinated notes assumed, which are issued to Trust Preferred Issuers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' |
Subordinated notes assumed, retired immediately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' |
Acquisition related expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 171,000 | 7,900,000 | ' | ' | ' | ' |
Number of branches acquired that are within the entity's target market areas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of branches acquired that are within the entity's target market areas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration paid: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | 6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' |
Fair value of identifiable assets acquired: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 216,331,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 439,805,000 | ' | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,619,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 139,764,000 | ' | ' | ' | ' | ' | ' |
Federal home loan bank stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,933,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,993,000 | ' | ' | ' | ' | ' | ' |
Loans held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 213,946,000 | ' | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 571,666,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,530,376,000 | ' | ' | ' | ' | ' | ' |
Premises and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,912,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,168,000 | ' | ' | ' | ' | ' | ' |
Loan servicing rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 767,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,967,000 | ' | ' | ' | ' | ' | ' |
Company-owned life insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,172,000 | ' | ' | ' | ' | ' | ' |
Other real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,878,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,448,000 | ' | ' | ' | ' | ' | ' |
Intangible asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,633,000 | ' | ' | ' | ' | ' | ' | 9,816,000 | ' |
Other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,542,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128,278,000 | ' | ' | ' | ' | ' | ' |
Increase in other assets from acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total identifiable assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 910,281,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,595,733,000 | ' | ' | ' | ' | ' | ' |
Fair value of liabilities assumed: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 857,769,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,121,258,000 | ' | ' | ' | ' | ' | ' |
Short-term borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,892,000 | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 312,956,000 | ' | ' | ' | ' | ' | ' |
Other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,035,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,925,000 | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 861,804,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,479,031,000 | ' | ' | ' | ' | ' | ' |
Fair Value of net identifiable assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,477,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116,702,000 | ' | ' | ' | ' | ' | ' |
Bargain purchase gain resulting from acquisition | ' | ' | 41,977,000 | 71,702,000 | ' | ' | ' | ' | ' | ' | 41,977,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71,702,000 | ' | ' | ' | ' | ' | ' |
Increase in bargain purchase gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated life of asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Separate allowance for loan losses | 29,892,000 | ' | 29,892,000 | ' | ' | 17,746,000 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Increase in net operating losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,800,000 |
Increase in fair value of the deferred tax asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Information regarding acquired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 331,523,000 | ' | ' | ' | ' | ' | ' | 738,639,000 | ' | ' | ' |
Contractual cash flows not expected to be collected (nonaccretable difference) | ' | ' | ' | ' | ' | ' | ' | 266,866,000 | 251,108,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,410,000 | ' | ' | ' | ' | ' | ' | 150,008,000 | ' | ' | ' |
Expected cash flows | ' | ' | ' | ' | ' | ' | ' | 1,397,034,000 | 1,357,070,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 245,113,000 | ' | ' | ' | ' | ' | ' | 588,631,000 | ' | ' | ' |
Interest component of expected cash flows (accretable yield) | ' | ' | ' | ' | ' | ' | ' | 300,595,000 | 302,287,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,764,000 | ' | ' | ' | ' | ' | ' | 158,221,000 | ' | ' | ' |
Unpaid principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 362,782,000 | ' | ' | ' | ' | ' | ' | 1,094,223,000 | ' | ' |
Fair value discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,465,000 | ' | ' | ' | ' | ' | ' | 5,743,000 | ' | ' |
Total Fair value at acquisition | ' | ' | ' | ' | 571,666,000 | ' | 1,530,376,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 212,349,000 | 359,317,000 | ' | ' | ' | ' | ' | 430,410,000 | 1,099,966,000 | ' | ' |
Income statement items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest and other income | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 19,515,000 | 10,544,000 | 78,348,000 | 86,005,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.28 | $0.16 | $1.13 | $1.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted (in dollars per share) | $0.26 | $0.15 | $1.04 | $1.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro Forma Combined | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Interest and other income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,191,000 | ' | 71,588,000 | 254,465,000 | 319,968,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19,515,000 | ' | $10,719,000 | $78,348,000 | $95,168,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.28 | ' | $0.16 | $1.33 | $1.44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.26 | ' | $0.15 | $1.04 | $1.36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_Details
FAIR VALUE (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Minimum | ' |
General disclosure on fair value | ' |
Adjustments to loan values during the appraisal process (as a percent) | 0.00% |
Adjustments to other real estate owned values during the appraisal process (as a percent) | 0.00% |
Maximum | ' |
General disclosure on fair value | ' |
Adjustments to loan values during the appraisal process (as a percent) | 40.00% |
Adjustments to other real estate owned values during the appraisal process (as a percent) | 40.00% |
FAIR_VALUE_Details_2
FAIR VALUE (Details 2) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
FAIR VALUE | ' | ' | ' |
Period of expected receipt of payment for FDIC receivable | '90 days | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | $734,489,000 | $620,083,000 | ' |
Loans held for sale | 122,599,000 | 85,252,000 | ' |
Loan servicing rights | 74,380,000 | 78,603,000 | ' |
Derivative assets | 1,798,000 | 2,630,000 | ' |
Derivative liabilities | 361,000 | ' | ' |
Transfers between levels within the fair value hierarchy | ' | ' | ' |
Transfers of assets from level 1 to level 2 | 0 | ' | 0 |
Transfers of assets from level 2 to level 1 | 0 | ' | 0 |
Transfers of liabilities from level 1 to level 2 | 0 | ' | 0 |
Transfers of liabilities from level 2 to level 1 | 0 | ' | 0 |
U.S. government sponsored agency obligations | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 105,690,000 | 98,237,000 | ' |
Obligations of state and political subdivisions: Taxable | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 397,000 | 396,000 | ' |
Obligations of state and political subdivisions: Tax exempt | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 220,530,000 | 182,000,000 | ' |
Small Business Administration (SBA) Pools | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 35,332,000 | 42,426,000 | ' |
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 299,605,000 | 218,922,000 | ' |
Privately issued | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 9,959,000 | 4,446,000 | ' |
Privately issued commercial mortgage-backed securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 5,135,000 | 5,147,000 | ' |
Corporate Debt Securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 57,841,000 | 68,020,000 | ' |
Equity securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | ' | 489,000 | ' |
Recurring basis | Total | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 734,489,000 | 620,083,000 | ' |
Loans held for sale | 122,599,000 | 85,252,000 | ' |
Loan servicing rights | 74,380,000 | 78,603,000 | ' |
Derivative assets | 1,798,000 | 2,630,000 | ' |
Total assets at fair value | 951,147,000 | 804,276,000 | ' |
Derivative liabilities | 361,000 | ' | ' |
Total liabilities at fair value | 361,000 | ' | ' |
Recurring basis | Total | Residential real estate | ' | ' | ' |
Fair Value | ' | ' | ' |
Loans held for investment, recorded at fair value | 17,881,000 | 16,334,000 | ' |
Recurring basis | Total | Real estate construction | ' | ' | ' |
Fair Value | ' | ' | ' |
Loans held for investment, recorded at fair value | ' | 1,374,000 | ' |
Recurring basis | Total | U.S. government sponsored agency obligations | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 105,690,000 | 98,237,000 | ' |
Recurring basis | Total | Obligations of state and political subdivisions: Taxable | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 397,000 | 396,000 | ' |
Recurring basis | Total | Obligations of state and political subdivisions: Tax exempt | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 220,530,000 | 182,000,000 | ' |
Recurring basis | Total | Small Business Administration (SBA) Pools | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 35,332,000 | 42,426,000 | ' |
Recurring basis | Total | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 299,605,000 | 218,922,000 | ' |
Recurring basis | Total | Privately issued | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 9,959,000 | 4,446,000 | ' |
Recurring basis | Total | Privately issued commercial mortgage-backed securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 5,135,000 | 5,147,000 | ' |
Recurring basis | Total | Corporate Debt Securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 57,841,000 | 68,020,000 | ' |
Recurring basis | Total | Equity securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | ' | 489,000 | ' |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | ' | 489,000 | ' |
Total assets at fair value | 0 | 489,000 | ' |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | ' | 489,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 733,657,000 | 618,793,000 | ' |
Loans held for sale | 122,599,000 | 85,252,000 | ' |
Derivative assets | 1,798,000 | 2,630,000 | ' |
Total assets at fair value | 858,054,000 | 706,675,000 | ' |
Derivative liabilities | 361,000 | ' | ' |
Total liabilities at fair value | 361,000 | ' | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government sponsored agency obligations | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 105,690,000 | 98,237,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of state and political subdivisions: Tax exempt | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 220,530,000 | 182,000,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Small Business Administration (SBA) Pools | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 35,332,000 | 42,426,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 299,605,000 | 218,922,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Privately issued | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 9,959,000 | 4,446,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Privately issued commercial mortgage-backed securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 5,135,000 | 5,147,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate Debt Securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 57,406,000 | 67,615,000 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 832,000 | 801,000 | ' |
Loan servicing rights | 74,380,000 | 78,603,000 | ' |
Total assets at fair value | 93,093,000 | 97,112,000 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential real estate | ' | ' | ' |
Fair Value | ' | ' | ' |
Loans held for investment, recorded at fair value | 17,881,000 | 16,334,000 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | Real estate construction | ' | ' | ' |
Fair Value | ' | ' | ' |
Loans held for investment, recorded at fair value | ' | 1,374,000 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of state and political subdivisions: Taxable | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | 397,000 | 396,000 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate Debt Securities | ' | ' | ' |
Fair Value | ' | ' | ' |
Available-for-sale securities | $435,000 | $405,000 | ' |
FAIR_VALUE_Details_3
FAIR VALUE (Details 3) (USD $) | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Jan. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Change in accounting principle for loan servicing rights | Loan servicing rights | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | ||
Restatement adjustment | Change in accounting principle for loan servicing rights | Loans held for investment | Loans held for investment | Loans held for investment | Loans held for investment | Loan servicing rights | Loan servicing rights | Loan servicing rights | Loan servicing rights | Loan servicing rights | Loan servicing rights | Loan servicing rights | Loan servicing rights | Taxable obligations of state and political subdivisions | Taxable obligations of state and political subdivisions | Taxable obligations of state and political subdivisions | Taxable obligations of state and political subdivisions | Taxable obligations of state and political subdivisions | Taxable obligations of state and political subdivisions | Taxable obligations of state and political subdivisions | Corporate Debt Securities | Corporate Debt Securities | Corporate Debt Securities | Corporate Debt Securities | Corporate Debt Securities | Corporate Debt Securities | Corporate Debt Securities | Corporate Debt Securities | Corporate Debt Securities | ||
Restatement adjustment | Mortgage banking and other loan fees | Mortgage banking and other loan fees | Mortgage banking and other loan fees | Mortgage banking and other loan fees | Mortgage banking and other loan fees | Mortgage banking and other loan fees | Interest on investments | Net gain (loss) on sales of securities | Interest on investments | Interest on investments | Interest on investments | Interest on investments | |||||||||||||||||||
Changes in Level 3 assets during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Balance, beginning of period | ' | ' | $18,521 | $17,708 | ' | ' | $74,104 | $65,187 | $78,603 | ' | ' | ' | ' | ' | $397 | $397 | $396 | $396 | $396 | $396 | ' | $433 | $14,006 | $405 | $15,250 | ' | ' | ' | ' | ' | |
Transfers based on new accounting policy election | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,657 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additions due to acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 767 | 41,967 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Transfers from loans held for sale | ' | ' | 280 | 1,058 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gains (losses) recorded in earnings (realized) | ' | ' | ' | ' | -93 | 320 | ' | ' | ' | ' | -2,022 | -69 | -11,036 | 3,997 | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | 69 | 1 | 47 | 3 | 47 | |
Gains (losses) recorded in other comprehensive income (OCI) (pre-tax) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -44 | 27 | 189 | ' | ' | ' | ' | ' | |
Purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 440 | ' | ' | ' | ' | ' | |
New originations | ' | ' | ' | ' | ' | ' | 2,298 | 6,633 | 6,046 | 20,130 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Sales/calls | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -835 | ' | -2,821 | ' | ' | ' | ' | ' | |
Repayments | ' | ' | -827 | -1,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Draws on previously issued lines of credits | ' | ' | ' | 128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Balance, end of period | ' | ' | 17,881 | 17,881 | ' | ' | 74,380 | 71,751 | 74,380 | 71,751 | ' | ' | ' | ' | 397 | 397 | 396 | 396 | 396 | 396 | ' | 435 | 13,174 | 435 | 13,174 | ' | ' | ' | ' | ' | |
Cumulative adjustment to retained earnings due to change in policy | $31 | $31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | The balance transferred includes $31 thousand of cumulative adjustment related to the change in accounting policy referenced in Note 1 to our audited financial statements included in our 2013 Annual Report. |
FAIR_VALUE_Details_4
FAIR VALUE (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Loans held for investment measured and recorded at fair value | ' | ' | ' | ' | ' |
Aggregate fair value | $17,881 | ' | $17,881 | ' | $17,708 |
Contractual balance | 17,816 | ' | 17,816 | ' | 18,022 |
Fair market value gain (loss) | ' | ' | 65 | ' | -314 |
Gains (losses) from changes in fair value included in earnings | -1,935 | 12,652 | 2,899 | 944 | ' |
Aggregate fair value of loans held for investment that are 90 days or more past due | 155 | ' | 155 | ' | 293 |
Contractual principal balance of loans held for investment that are 90 days or more past due | 191 | ' | 191 | ' | 301 |
Nonaccrual status of loans that were 90 days or more past due | 155 | ' | 155 | ' | 252 |
Interest income earned on loans transferred from loans held for sale to loans held for investment | $164 | ' | $423 | ' | ' |
FAIR_VALUE_Details_5
FAIR VALUE (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Other information with respect to fair value | ' | ' | ' | ' | ' |
Loans held for sale that are 90 days past due or on nonaccrual | $0 | ' | $0 | ' | $0 |
Aggregate fair value | 122,599 | ' | 122,599 | ' | 85,252 |
Contractual balance | 117,015 | ' | 117,015 | ' | 82,567 |
Unrealized gain | ' | ' | 5,584 | ' | 2,685 |
Gains/(losses) from changes in fair value included in earnings | ($1,935) | $12,652 | $2,899 | $944 | ' |
FAIR_VALUE_Details_6
FAIR VALUE (Details 6) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | ||||
Total | Total | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Covered | Covered | Covered | Covered | Covered | Covered | Covered | Covered | Covered | Covered | Covered | Covered | Covered | Covered | ||||||||||
Total | Total | Total | Total | Total | Total | Total | Total | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Total | Total | Total | Total | Total | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
Residential real estate | Residential real estate | Commercial real estate | Commercial and industrial | Commercial and industrial | Consumer | Residential real estate | Residential real estate | Commercial real estate | Commercial and industrial | Commercial and industrial | Consumer | Residential real estate | Commercial real estate | Commercial and industrial | Residential real estate | Commercial real estate | Commercial and industrial | ||||||||||||||||||||||||||||||||
Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,324 | $2,975 | ' | ' | $14,324 | $2,975 | ' | ' | ' | ' | $13,431 | $2,331 | $2,773 | $1,569 | $3,220 | $7,423 | $762 | $15 | $13,431 | $2,331 | $2,773 | $1,569 | $3,220 | $7,423 | $762 | $15 | ' | ' | ' | ' | $893 | $644 | $26 | $644 | $867 | $893 | $644 | $26 | $644 | $867 |
Other real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total OREO | 44,940 | 29,955 | 33,373 | 24,703 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,793 | 2,216 | ' | ' | ' | ' | ' | ' | 6,793 | 2,216 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,062 | 4,596 | ' | ' | ' | 2,062 | 4,596 | ' | ' | ' |
Premises and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 675 | 105 | 675 | 105 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets at fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,854 | 9,892 | 675 | 105 | 23,179 | 9,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Specific reserves for impaired loans, nonrecurring | ' | ' | ' | ' | 2,800 | ' | 2,800 | ' | 1,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge-offs for impaired loans, nonrecurring | ' | ' | ' | ' | 633 | 36 | 1,300 | 441 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount charged through other non-interest expense to reduce the fair value of other real estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400 | 155 | 2,900 | 1,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 701 | 2,000 | 1,600 | 4,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount charged through other noninterest expenses on premises and equipment | ' | ' | ' | ' | $185 | $109 | $185 | $109 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_Details_7
FAIR VALUE (Details 7) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Financial assets: | ' | ' | ' | ' | ' | ' |
Net loans, excluding covered loans | $3,601,441 | ' | $2,456,170 | ' | ' | ' |
Net covered loans | 378,024 | ' | 489,687 | ' | ' | ' |
FDIC indemnification asset | 82,441 | 102,694 | 131,861 | 148,325 | 171,956 | 226,356 |
FDIC receivable | 12,873 | 7,198 | 7,783 | 13,530 | 17,573 | 17,999 |
Company-owned life insurance | 96,605 | ' | 39,500 | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Time deposits | 1,256,981 | ' | 927,313 | ' | ' | ' |
Total deposits | 4,485,597 | ' | 3,600,837 | ' | ' | ' |
FDIC clawback liability | 25,723 | ' | 24,887 | ' | ' | ' |
Short-term borrowings | 150,573 | ' | 71,876 | ' | ' | ' |
Long-term debt | 285,009 | ' | 199,037 | ' | ' | ' |
FDIC warrants payable | 4,563 | ' | 4,118 | ' | ' | ' |
Other brokered funds | 473,240 | ' | 80,000 | ' | ' | ' |
Uncovered | ' | ' | ' | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Impaired loans | 48,846 | ' | 27,749 | ' | ' | ' |
Covered | ' | ' | ' | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Impaired loans | 32,384 | ' | 38,763 | ' | ' | ' |
Recurring basis | Uncovered | ' | ' | ' | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Impaired loans | 17,900 | ' | 17,700 | ' | ' | ' |
Non-recurring basis | Uncovered | ' | ' | ' | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Impaired loans | 13,400 | ' | 2,300 | ' | ' | ' |
Non-recurring basis | Covered | ' | ' | ' | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Impaired loans | 893 | ' | 644 | ' | ' | ' |
Total | Non-recurring basis | ' | ' | ' | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Impaired loans | 14,324 | ' | 2,975 | ' | ' | ' |
Level 3 | Non-recurring basis | ' | ' | ' | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Impaired loans | 14,324 | ' | 2,975 | ' | ' | ' |
Carrying Value | ' | ' | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 298,666 | ' | 375,356 | ' | ' | ' |
Federal Home Loan Bank stock | 17,426 | ' | 16,303 | ' | ' | ' |
Net loans, excluding covered loans | 3,601,441 | ' | 2,456,170 | ' | ' | ' |
Net covered loans | 378,024 | ' | 489,687 | ' | ' | ' |
Accrued interest receivable | 12,876 | ' | 7,968 | ' | ' | ' |
FDIC indemnification asset | 82,441 | ' | 131,861 | ' | ' | ' |
FDIC receivable | 12,873 | ' | 7,783 | ' | ' | ' |
Company-owned life insurance | 96,605 | ' | 39,500 | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Savings and demand deposits | 3,178,616 | ' | 2,673,524 | ' | ' | ' |
Time deposits | 1,306,981 | ' | 927,313 | ' | ' | ' |
Total deposits | 4,485,597 | ' | 3,600,837 | ' | ' | ' |
FDIC clawback liability | 25,723 | ' | 24,887 | ' | ' | ' |
Short-term borrowings | 150,573 | ' | 71,876 | ' | ' | ' |
Long-term debt | 285,009 | ' | 199,037 | ' | ' | ' |
FDIC warrants payable | 4,563 | ' | 4,118 | ' | ' | ' |
Accrued interest payable | 694 | ' | 626 | ' | ' | ' |
Deferred compensation plan liabilities | 218 | ' | ' | ' | ' | ' |
Carrying Value | Brokered deposits within time deposit | ' | ' | ' | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Time deposits | 50,000 | ' | ' | ' | ' | ' |
Estimated fair value | Total | ' | ' | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 298,666 | ' | 375,356 | ' | ' | ' |
Net loans, excluding covered loans | 3,684,609 | ' | 2,574,109 | ' | ' | ' |
Net covered loans | 453,652 | ' | 534,857 | ' | ' | ' |
Accrued interest receivable | 12,876 | ' | 7,968 | ' | ' | ' |
FDIC indemnification asset | 52,145 | ' | 84,010 | ' | ' | ' |
FDIC receivable | 12,873 | ' | 7,783 | ' | ' | ' |
Company-owned life insurance | 96,605 | ' | 39,500 | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Savings and demand deposits | 3,178,616 | ' | 2,673,524 | ' | ' | ' |
Time deposits | 1,306,427 | ' | 928,128 | ' | ' | ' |
Total deposits | 4,485,043 | ' | 3,601,652 | ' | ' | ' |
FDIC clawback liability | 25,723 | ' | 24,887 | ' | ' | ' |
Short-term borrowings | 150,573 | ' | 71,876 | ' | ' | ' |
Long-term debt | 279,011 | ' | 190,420 | ' | ' | ' |
FDIC warrants payable | 4,563 | ' | 4,118 | ' | ' | ' |
Accrued interest payable | 694 | ' | 626 | ' | ' | ' |
Deferred compensation plan liabilities | 218 | ' | ' | ' | ' | ' |
Estimated fair value | Level 1 | ' | ' | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 91,214 | ' | 97,167 | ' | ' | ' |
Estimated fair value | Level 2 | ' | ' | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 207,452 | ' | 278,189 | ' | ' | ' |
Accrued interest receivable | 12,876 | ' | 7,968 | ' | ' | ' |
FDIC receivable | 12,873 | ' | 7,783 | ' | ' | ' |
Company-owned life insurance | 96,605 | ' | 39,500 | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
Savings and demand deposits | 3,178,616 | ' | 2,673,524 | ' | ' | ' |
Time deposits | 1,306,427 | ' | 928,128 | ' | ' | ' |
Total deposits | 4,485,043 | ' | 3,601,652 | ' | ' | ' |
Short-term borrowings | 150,573 | ' | 71,876 | ' | ' | ' |
Long-term debt | 279,011 | ' | 190,420 | ' | ' | ' |
Accrued interest payable | 694 | ' | 626 | ' | ' | ' |
Deferred compensation plan liabilities | 218 | ' | ' | ' | ' | ' |
Estimated fair value | Level 3 | ' | ' | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' | ' | ' |
Net loans, excluding covered loans | 3,684,609 | ' | 2,574,109 | ' | ' | ' |
Net covered loans | 453,652 | ' | 534,857 | ' | ' | ' |
FDIC indemnification asset | 52,145 | ' | 84,010 | ' | ' | ' |
Deposits: | ' | ' | ' | ' | ' | ' |
FDIC clawback liability | 25,723 | ' | 24,887 | ' | ' | ' |
FDIC warrants payable | $4,563 | ' | $4,118 | ' | ' | ' |
SECURITIES_Details
SECURITIES (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Investment securities available-for-sale | ' | ' |
Amortized Cost | $731,278 | $632,385 |
Gross Unrealized Gains | 6,728 | 3,252 |
Gross Unrealized Losses | -3,517 | -15,554 |
Fair Value | 734,489 | 620,083 |
U.S. government sponsored agency obligations | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | 105,806 | 102,597 |
Gross Unrealized Gains | 427 | ' |
Gross Unrealized Losses | -543 | -4,360 |
Fair Value | 105,690 | 98,237 |
Obligations of state and political subdivisions: Taxable | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | 397 | 396 |
Fair Value | 397 | 396 |
Obligations of state and political subdivisions: Tax exempt | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | 217,671 | 184,351 |
Gross Unrealized Gains | 3,724 | 2,102 |
Gross Unrealized Losses | -865 | -4,453 |
Fair Value | 220,530 | 182,000 |
SBA Pools | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | 35,346 | 42,956 |
Gross Unrealized Gains | 162 | 162 |
Gross Unrealized Losses | -176 | -692 |
Fair Value | 35,332 | 42,426 |
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | 299,591 | 223,518 |
Gross Unrealized Gains | 1,704 | 729 |
Gross Unrealized Losses | -1,690 | -5,325 |
Fair Value | 299,605 | 218,922 |
Privately issued | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | 9,984 | 4,453 |
Gross Unrealized Gains | 5 | 22 |
Gross Unrealized Losses | -30 | -29 |
Fair Value | 9,959 | 4,446 |
Privately issued commercial mortgage-backed securities | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | 5,141 | 5,181 |
Gross Unrealized Losses | -6 | -34 |
Fair Value | 5,135 | 5,147 |
Corporate Debt Securities | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | 57,342 | 68,433 |
Gross Unrealized Gains | 706 | 237 |
Gross Unrealized Losses | -207 | -650 |
Fair Value | 57,841 | 68,020 |
Equity securities | ' | ' |
Investment securities available-for-sale | ' | ' |
Amortized Cost | ' | 500 |
Gross Unrealized Losses | ' | -11 |
Fair Value | ' | $489 |
SECURITIES_Details_2
SECURITIES (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Information with respect to proceeds from sales of securities and the associated gains and losses | ' | ' | ' |
Proceeds | $28,285 | $82,496 | $7,500 |
Gross gains | 248 | 248 | 124 |
Gross losses | ($4) | ($2,314) | ($24) |
SECURITIES_Details_3
SECURITIES (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Securities with contractual maturities: | ' | ' |
Within one year | $1,755,000 | ' |
After one year through five years | 84,416,000 | ' |
After five years through ten years | 169,417,000 | ' |
After ten years | 475,690,000 | ' |
Total available-for-sale securities | 731,278,000 | 632,385,000 |
Securities with contractual maturities: | ' | ' |
Within one year | 1,755,000 | ' |
After one year through five years | 85,581,000 | ' |
After five years through ten years | 170,787,000 | ' |
After ten years | 476,366,000 | ' |
Total available-for-sale securities | 734,489,000 | 620,083,000 |
Available-for-sale securities pledged as collateral | ' | ' |
Securities with amortized cost pledged to secure borrowings and deposits | $423,100,000 | $264,600,000 |
SECURITIES_Details_4
SECURITIES (Details 4) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
item | ||
Less than 12 Months | ' | ' |
Fair Value | $182,819 | $423,028 |
Unrealized losses | -836 | -14,859 |
More than 12 Months | ' | ' |
Fair Value | 181,608 | 26,386 |
Unrealized losses | -2,681 | -695 |
Total | ' | ' |
Fair Value | 364,427 | 449,414 |
Unrealized losses | -3,517 | -15,554 |
Other information with respect to available-for-sale securities | ' | ' |
Number of securities in portfolio | 335 | ' |
Number of securities in an unrealized loss position | 121 | ' |
U.S. government sponsored agency obligations | ' | ' |
Less than 12 Months | ' | ' |
Fair Value | 29,910 | 98,237 |
Unrealized losses | -83 | -4,360 |
More than 12 Months | ' | ' |
Fair Value | 49,531 | ' |
Unrealized losses | -460 | ' |
Total | ' | ' |
Fair Value | 79,441 | 98,237 |
Unrealized losses | -543 | -4,360 |
Obligations of state and political subdivisions: Tax exempt | ' | ' |
Less than 12 Months | ' | ' |
Fair Value | 35,291 | 102,585 |
Unrealized losses | -209 | -4,159 |
More than 12 Months | ' | ' |
Fair Value | 41,912 | 5,794 |
Unrealized losses | -656 | -294 |
Total | ' | ' |
Fair Value | 77,203 | 108,379 |
Unrealized losses | -865 | -4,453 |
SBA Pools | ' | ' |
Less than 12 Months | ' | ' |
Fair Value | 1,861 | 26,498 |
Unrealized losses | -10 | -692 |
More than 12 Months | ' | ' |
Fair Value | 18,191 | ' |
Unrealized losses | -166 | ' |
Total | ' | ' |
Fair Value | 20,052 | 26,498 |
Unrealized losses | -176 | -692 |
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ' | ' |
Less than 12 Months | ' | ' |
Fair Value | 89,613 | 155,028 |
Unrealized losses | -383 | -4,952 |
More than 12 Months | ' | ' |
Fair Value | 62,954 | 18,846 |
Unrealized losses | -1,307 | -373 |
Total | ' | ' |
Fair Value | 152,567 | 173,874 |
Unrealized losses | -1,690 | -5,325 |
Privately issued | ' | ' |
Less than 12 Months | ' | ' |
Fair Value | 8,130 | 557 |
Unrealized losses | -30 | -1 |
More than 12 Months | ' | ' |
Fair Value | 56 | 1,746 |
Unrealized losses | ' | -28 |
Total | ' | ' |
Fair Value | 8,186 | 2,303 |
Unrealized losses | -30 | -29 |
Privately issued commercial mortgage-backed securities | ' | ' |
Less than 12 Months | ' | ' |
Fair Value | 5,135 | 5,147 |
Unrealized losses | -6 | -34 |
Total | ' | ' |
Fair Value | 5,135 | 5,147 |
Unrealized losses | -6 | -34 |
Corporate Debt Securities | ' | ' |
Less than 12 Months | ' | ' |
Fair Value | 12,879 | 34,487 |
Unrealized losses | -115 | -650 |
More than 12 Months | ' | ' |
Fair Value | 8,964 | ' |
Unrealized losses | -92 | ' |
Total | ' | ' |
Fair Value | 21,843 | 34,487 |
Unrealized losses | -207 | -650 |
Equity securities | ' | ' |
Less than 12 Months | ' | ' |
Fair Value | ' | 489 |
Unrealized losses | ' | -11 |
Total | ' | ' |
Fair Value | ' | 489 |
Unrealized losses | ' | ($11) |
LOANS_Details
LOANS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||||
Covered | Covered | Covered | Covered | Covered | Covered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | Consumer | |||||||
Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Minimum | Maximum | Covered | Covered | Covered | Covered | Covered | Covered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Covered | Covered | Covered | Covered | Covered | Covered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Covered | Covered | Covered | Covered | Covered | Covered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Covered | Covered | Covered | Covered | Covered | Covered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Covered | Covered | Covered | Covered | Covered | Covered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | Uncovered | |||||||||||||||||||||
Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | Accounted for under ASC 310-30 | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Excluded from ASC 310-30 accounting | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Term of finance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total covered loans | ' | ' | $403,792,000 | $530,068,000 | $343,414,000 | $440,986,000 | $60,378,000 | $89,082,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $113,228,000 | $123,334,000 | $90,763,000 | $100,034,000 | $22,465,000 | $23,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | $219,496,000 | $299,401,000 | $197,194,000 | $262,769,000 | $22,302,000 | $36,632,000 | ' | ' | ' | ' | ' | ' | ' | ' | $47,252,000 | $78,437,000 | $32,977,000 | $51,407,000 | $14,275,000 | $27,030,000 | ' | ' | ' | ' | ' | ' | ' | ' | $13,734,000 | $17,218,000 | $12,531,000 | $15,268,000 | $1,203,000 | $1,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | $10,082,000 | $11,678,000 | $9,949,000 | $11,508,000 | $133,000 | $170,000 | ' | ' | ' | ' | ' | ' | ||||
Total uncovered loans | 3,631,333,000 | 2,473,916,000 | ' | ' | ' | ' | ' | ' | 3,631,333,000 | 2,473,916,000 | 486,159,000 | 362,689,000 | 3,145,174,000 | 2,111,227,000 | 1,430,939,000 | [1] | 1,085,453,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | 1,430,939,000 | 1,085,453,000 | 250,527,000 | 253,528,000 | 1,180,412,000 | 831,925,000 | 1,213,361,000 | 755,839,000 | ' | ' | ' | ' | ' | ' | 1,213,361,000 | 755,839,000 | 207,006,000 | 98,299,000 | 1,006,355,000 | 657,540,000 | 790,867,000 | 446,644,000 | ' | ' | ' | ' | ' | ' | 790,867,000 | 446,644,000 | 17,092,000 | 5,985,000 | 773,775,000 | 440,659,000 | 102,920,000 | [1] | 176,226,000 | [1] | ' | ' | ' | ' | ' | ' | 102,920,000 | 176,226,000 | 8,717,000 | 1,970,000 | 94,203,000 | 174,256,000 | 93,246,000 | 9,754,000 | ' | ' | ' | ' | ' | ' | 93,246,000 | 9,754,000 | 2,817,000 | 2,907,000 | 90,429,000 | 6,847,000 |
Total | 4,035,125,000 | 3,003,984,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,544,167,000 | 1,208,787,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,432,857,000 | 1,055,240,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 838,119,000 | 525,081,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116,654,000 | 193,444,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103,328,000 | 21,432,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Deferred fees and costs | $5,400,000 | $9,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Amounts represent loans for which the Company has elected the fair value option. See Note 3. |
LOANS_Details_2
LOANS (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Uncovered | Uncovered | Covered | Covered | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Real estate construction | Real estate construction | Real estate construction | Real estate construction | Consumer | Consumer | Consumer | Consumer | ||||
Uncovered | Uncovered | Covered | Covered | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | Nonperforming assets | |||||||||||
Uncovered | Uncovered | Covered | Covered | Uncovered | Uncovered | Covered | Covered | Uncovered | Uncovered | Covered | Covered | Uncovered | Uncovered | Covered | Covered | Uncovered | Uncovered | Covered | Covered | |||||||||||||||
Information on nonperforming assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonaccrual loans | ' | ' | ' | ' | $43,283 | $24,297 | $12,382 | $17,716 | ' | ' | $43,283 | $24,297 | $12,382 | $17,716 | $15,733 | $15,415 | $1,737 | $988 | $12,578 | $5,591 | $5,457 | $8,124 | $14,474 | $2,681 | $4,091 | $7,201 | $253 | $510 | $1,055 | $1,372 | $245 | $100 | $42 | $31 |
Other real estate owned | 44,940 | 29,955 | 33,373 | 24,703 | ' | ' | ' | ' | ' | ' | ' | ' | 11,766 | 11,571 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans transferred to other real estate owned and transfers to other real estate owned excluding branch or building operation closings or consolidations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,022 | 17,046 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | ' | ' | ' | ' | ' | ' | ' | ' | $99,453 | $70,630 | $75,305 | $41,343 | $24,148 | $29,287 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LOANS_Details_3
LOANS (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Loans and Allowance for Loan Losses | ' | ' | ||
90 days or more past due | $191 | $301 | ||
Total loans | 3,631,333 | 2,473,916 | ||
Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 3,631,333 | 2,473,916 | ||
Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans, covered | 403,792 | 530,068 | ||
Residential real estate | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 1,430,939 | [1] | 1,085,453 | [1] |
Residential real estate | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 1,430,939 | 1,085,453 | ||
Residential real estate | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans, covered | 113,228 | 123,334 | ||
Commercial real estate | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 1,213,361 | 755,839 | ||
Commercial real estate | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 1,213,361 | 755,839 | ||
Commercial real estate | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans, covered | 219,496 | 299,401 | ||
Commercial and industrial | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 790,867 | 446,644 | ||
Commercial and industrial | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 790,867 | 446,644 | ||
Commercial and industrial | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans, covered | 47,252 | 78,437 | ||
Real estate construction | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 102,920 | [1] | 176,226 | [1] |
Real estate construction | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 102,920 | 176,226 | ||
Real estate construction | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans, covered | 13,734 | 17,218 | ||
Consumer | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 93,246 | 9,754 | ||
Consumer | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans | 93,246 | 9,754 | ||
Consumer | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
Total loans, covered | 10,082 | 11,678 | ||
Excluding loans accounted for under ASC 310-30 | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 11,592 | 18,025 | ||
60-89 days past due | 7,005 | 7,260 | ||
90 days or more past due | 20,209 | 8,686 | ||
Total past due | 38,806 | 33,971 | ||
Current | 3,106,368 | 2,077,256 | ||
Total loans | 3,145,174 | 2,111,227 | ||
90 days or more past due and still accruing | 595 | 539 | ||
Excluding loans accounted for under ASC 310-30 | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 703 | 2,771 | ||
60-89 days past due | 980 | 954 | ||
90 days or more past due | 10,726 | 11,753 | ||
Total past due | 12,409 | 15,478 | ||
Current | 47,969 | 73,604 | ||
Total loans, covered | 60,378 | 89,082 | ||
Excluding loans accounted for under ASC 310-30 | Residential real estate | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 3,808 | 11,244 | ||
60-89 days past due | 1,939 | 1,849 | ||
90 days or more past due | 8,400 | 6,641 | ||
Total past due | 14,147 | 19,734 | ||
Current | 1,166,265 | 812,191 | ||
Total loans | 1,180,412 | 831,925 | ||
90 days or more past due and still accruing | 282 | 539 | ||
Excluding loans accounted for under ASC 310-30 | Residential real estate | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 484 | 827 | ||
60-89 days past due | 565 | 260 | ||
90 days or more past due | 978 | 224 | ||
Total past due | 2,027 | 1,311 | ||
Current | 20,438 | 21,989 | ||
Total loans, covered | 22,465 | 23,300 | ||
Excluding loans accounted for under ASC 310-30 | Commercial real estate | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 3,545 | 1,400 | ||
60-89 days past due | 3,447 | 4,992 | ||
90 days or more past due | 9,515 | 1,122 | ||
Total past due | 16,507 | 7,514 | ||
Current | 989,848 | 650,026 | ||
Total loans | 1,006,355 | 657,540 | ||
90 days or more past due and still accruing | 139 | ' | ||
Excluding loans accounted for under ASC 310-30 | Commercial real estate | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | ' | 324 | ||
60-89 days past due | 199 | 558 | ||
90 days or more past due | 5,223 | 5,681 | ||
Total past due | 5,422 | 6,563 | ||
Current | 16,880 | 30,069 | ||
Total loans, covered | 22,302 | 36,632 | ||
Excluding loans accounted for under ASC 310-30 | Commercial and industrial | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 3,641 | 136 | ||
60-89 days past due | 1,544 | 25 | ||
90 days or more past due | 1,925 | 560 | ||
Total past due | 7,110 | 721 | ||
Current | 766,665 | 439,938 | ||
Total loans | 773,775 | 440,659 | ||
Excluding loans accounted for under ASC 310-30 | Commercial and industrial | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 163 | 1,619 | ||
60-89 days past due | 114 | 119 | ||
90 days or more past due | 3,494 | 4,476 | ||
Total past due | 3,771 | 6,214 | ||
Current | 10,504 | 20,816 | ||
Total loans, covered | 14,275 | 27,030 | ||
Excluding loans accounted for under ASC 310-30 | Real estate construction | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 418 | 5,038 | ||
60-89 days past due | ' | 356 | ||
90 days or more past due | 348 | 359 | ||
Total past due | 766 | 5,753 | ||
Current | 94,437 | 168,503 | ||
Total loans | 94,203 | 174,256 | ||
90 days or more past due and still accruing | 174 | ' | ||
Excluding loans accounted for under ASC 310-30 | Real estate construction | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 53 | ' | ||
60-89 days past due | 102 | ' | ||
90 days or more past due | 1,001 | 1,365 | ||
Total past due | 1,156 | 1,365 | ||
Current | 47 | 585 | ||
Total loans, covered | 1,203 | 1,950 | ||
Excluding loans accounted for under ASC 310-30 | Consumer | Uncovered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 180 | 207 | ||
60-89 days past due | 75 | 38 | ||
90 days or more past due | 21 | 4 | ||
Total past due | 276 | 249 | ||
Current | 90,153 | 6,598 | ||
Total loans | 90,429 | 6,847 | ||
Excluding loans accounted for under ASC 310-30 | Consumer | Covered | ' | ' | ||
Loans and Allowance for Loan Losses | ' | ' | ||
30-59 days past due | 3 | 1 | ||
60-89 days past due | ' | 17 | ||
90 days or more past due | 30 | 7 | ||
Total past due | 33 | 25 | ||
Current | 100 | 145 | ||
Total loans, covered | $133 | $170 | ||
[1] | Amounts represent loans for which the Company has elected the fair value option. See Note 3. |
LOANS_Details_4
LOANS (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Performing | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | $25,600 | $24,500 |
Uncovered | ' | ' |
Information as to total impaired loans | ' | ' |
Nonaccrual loans | 43,283 | 24,297 |
Impaired loans | 48,846 | 27,749 |
Uncovered | Performing | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 5,563 | 3,452 |
Uncovered | Performing | Residential real estate | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 1,802 | 328 |
Uncovered | Performing | Commercial real estate | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 2,961 | 1,637 |
Uncovered | Performing | Commercial and industrial | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 652 | 1,367 |
Uncovered | Performing | Real estate construction | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 92 | 90 |
Uncovered | Performing | Consumer | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 56 | 30 |
Covered | ' | ' |
Information as to total impaired loans | ' | ' |
Nonaccrual loans | 12,382 | 17,716 |
Impaired loans | 32,384 | 38,763 |
Covered | Performing | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 20,002 | 21,047 |
Covered | Performing | Residential real estate | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 2,860 | 2,691 |
Covered | Performing | Commercial real estate | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 14,915 | 14,391 |
Covered | Performing | Commercial and industrial | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | 2,119 | 3,802 |
Covered | Performing | Real estate construction | ' | ' |
Information as to total impaired loans | ' | ' |
Troubled debt restructurings | $108 | $163 |
LOANS_Details_5
LOANS (Details 5) (USD $) | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Nonperforming | Nonperforming | Performing | Performing | ||
Information as to total impaired loans | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | $14,200 | $17,900 | $25,600 | $24,500 |
Period of required compliance for restructured obligation modified at market rate for not reporting it as TDR | '6 months | ' | ' | ' | ' |
Period of required compliance for restructured obligation modified at other than market rate for reconsidering it as performing | '6 months | ' | ' | ' | ' |
LOANS_Details_6
LOANS (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
loan | loan | loan | loan | |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 24 | 15 | 80 | 99 |
Total recorded investment | $1,801 | $3,377 | $6,291 | $11,933 |
Net charge-offs (recoveries) | ' | 41 | 27 | 1,163 |
Provision (benefit) for loan losses | -19 | 56 | 760 | 655 |
Loan forgiven | 273 | 25 | 677 | 25 |
Uncovered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 18 | 5 | 50 | 28 |
Total recorded investment | 1,534 | 2,275 | 4,301 | 6,128 |
Net charge-offs (recoveries) | ' | 25 | 21 | 166 |
Provision (benefit) for loan losses | -20 | 45 | 668 | 49 |
Uncovered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 8 | 3 | 23 | 10 |
Total recorded investment | 653 | 614 | 1,377 | 1,174 |
Net charge-offs (recoveries) | 18 | 11 | -46 | 11 |
Provision (benefit) for loan losses | 29 | 44 | 431 | 48 |
Uncovered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 7 | 1 | 12 | 10 |
Total recorded investment | 819 | 1,631 | 2,573 | 4,800 |
Net charge-offs (recoveries) | -18 | 14 | -46 | 155 |
Provision (benefit) for loan losses | -18 | ' | 431 | ' |
Uncovered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 2 | ' | 12 | 7 |
Total recorded investment | 35 | ' | 241 | 124 |
Provision (benefit) for loan losses | -31 | ' | ' | ' |
Uncovered loans | Consumer | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 1 | 1 | 3 | 1 |
Total recorded investment | 27 | 30 | 110 | 30 |
Net charge-offs (recoveries) | ' | ' | -2 | ' |
Provision (benefit) for loan losses | ' | 1 | 21 | 1 |
Covered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 6 | 10 | 30 | 71 |
Total recorded investment | 267 | 1,102 | 1,990 | 5,805 |
Net charge-offs (recoveries) | ' | 16 | -6 | 997 |
Provision (benefit) for loan losses | 1 | 11 | 92 | 606 |
Covered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 4 | 6 | 17 | 19 |
Total recorded investment | 205 | 328 | 590 | 1,115 |
Net charge-offs (recoveries) | ' | 16 | -6 | 16 |
Provision (benefit) for loan losses | -1 | 16 | 14 | 16 |
Covered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | ' | 3 | 3 | 16 |
Total recorded investment | ' | 767 | 1,055 | 2,721 |
Net charge-offs (recoveries) | ' | ' | ' | 937 |
Provision (benefit) for loan losses | 2 | -5 | 70 | 553 |
Covered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 2 | ' | 10 | 31 |
Total recorded investment | 62 | ' | 345 | 1,225 |
Net charge-offs (recoveries) | ' | ' | ' | 44 |
Provision (benefit) for loan losses | ' | ' | 8 | 37 |
Covered loans | Real estate construction | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | ' | ' | ' | 3 |
Total recorded investment | ' | ' | ' | 737 |
Covered loans | Consumer | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | ' | 1 | ' | 2 |
Total recorded investment | ' | 7 | ' | 7 |
Principal deferral | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 654 | 298 | 942 | 4,281 |
Principal deferral | Uncovered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 463 | ' | 642 | 1,799 |
Principal deferral | Uncovered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 1 | ' | 144 | 4 |
Principal deferral | Uncovered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 435 | ' | 435 | 1,795 |
Principal deferral | Uncovered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | 36 | ' |
Principal deferral | Uncovered loans | Consumer | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 27 | ' | 27 | ' |
Principal deferral | Covered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 191 | 298 | 300 | 2,482 |
Principal deferral | Covered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 191 | 131 | 300 | 905 |
Principal deferral | Covered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | 160 | ' | 232 |
Principal deferral | Covered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | ' | 608 |
Principal deferral | Covered loans | Real estate construction | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | ' | 730 |
Principal deferral | Covered loans | Consumer | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | 7 | ' | 7 |
Principal reduction | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 180 | ' | 495 | ' |
Principal reduction | Uncovered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 166 | ' | 467 | ' |
Principal reduction | Uncovered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 166 | ' | 384 | ' |
Principal reduction | Uncovered loans | Consumer | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | 83 | ' |
Principal reduction | Covered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 14 | ' | 28 | ' |
Principal reduction | Covered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 14 | ' | 28 | ' |
Interest rate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 841 | 1,420 | 2,944 | 5,905 |
Interest rate | Uncovered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 779 | 644 | 1,786 | 2,679 |
Interest rate | Uncovered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 486 | 614 | 714 | 1,170 |
Interest rate | Uncovered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 258 | ' | 979 | 1,355 |
Interest rate | Uncovered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 35 | ' | 93 | 124 |
Interest rate | Uncovered loans | Consumer | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | 30 | ' | 30 |
Interest rate | Covered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 62 | 776 | 1,158 | 3,226 |
Interest rate | Covered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | 169 | 262 | 182 |
Interest rate | Covered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | 607 | 643 | 2,489 |
Interest rate | Covered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 62 | ' | 253 | 548 |
Interest rate | Covered loans | Real estate construction | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | ' | 7 |
Forbearance agreement | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 126 | 1,631 | 1,910 | 1,719 |
Forbearance agreement | Uncovered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 126 | 1,631 | 1,406 | 1,650 |
Forbearance agreement | Uncovered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | 135 | ' |
Forbearance agreement | Uncovered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | 126 | 1,631 | 1,159 | 1,650 |
Forbearance agreement | Uncovered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | 112 | ' |
Forbearance agreement | Covered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | 504 | 69 |
Forbearance agreement | Covered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | 412 | ' |
Forbearance agreement | Covered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total recorded investment | ' | ' | $92 | $69 |
LOANS_Details_7
LOANS (Details 7) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
loan | loan | loan | loan | |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 29 | 53 | 57 | 86 |
Total recorded investment | $3,216 | $3,204 | $5,971 | $6,885 |
Charged-off following a subsequent default | 12 | 659 | 943 | 2,635 |
Commitments to lend additional funds to borrowers whose terms have been modified in TDRs | 943 | ' | 943 | ' |
Uncovered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 18 | 4 | 31 | 13 |
Total recorded investment | 2,574 | 270 | 4,493 | 2,053 |
Charged-off following a subsequent default | 8 | 141 | 442 | 183 |
Uncovered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 11 | 1 | 21 | 6 |
Total recorded investment | 700 | 119 | 1,345 | 398 |
Charged-off following a subsequent default | 8 | ' | 119 | 25 |
Uncovered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 6 | 2 | 8 | 4 |
Total recorded investment | 1,739 | 121 | 3,013 | 1,186 |
Charged-off following a subsequent default | ' | 141 | 323 | 155 |
Uncovered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 1 | ' | 2 | 2 |
Total recorded investment | 135 | ' | 135 | 439 |
Uncovered loans | Consumer | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | ' | 1 | ' | 1 |
Total recorded investment | ' | 30 | ' | 30 |
Charged-off following a subsequent default | ' | ' | ' | 3 |
Covered loans | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 11 | 49 | 26 | 73 |
Total recorded investment | 642 | 2,934 | 1,478 | 4,832 |
Charged-off following a subsequent default | 4 | 518 | 501 | 2,452 |
Covered loans | Residential real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 6 | 10 | 9 | 16 |
Total recorded investment | 29 | 345 | 242 | 488 |
Charged-off following a subsequent default | ' | 11 | 12 | 236 |
Covered loans | Commercial real estate | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 2 | 13 | 6 | 24 |
Total recorded investment | 512 | 1,125 | 637 | 2,627 |
Charged-off following a subsequent default | ' | 170 | ' | 1,517 |
Covered loans | Commercial and industrial | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | 3 | 21 | 10 | 27 |
Total recorded investment | 101 | 767 | 235 | 1,020 |
Charged-off following a subsequent default | 4 | 317 | 6 | 678 |
Covered loans | Real estate construction | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | ' | 1 | 1 | 1 |
Total recorded investment | ' | 678 | 364 | 678 |
Charged-off following a subsequent default | ' | ' | 483 | ' |
Covered loans | Consumer | ' | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' | ' |
Total number of loans | ' | 4 | ' | 5 |
Total recorded investment | ' | 19 | ' | 19 |
Charged-off following a subsequent default | ' | $20 | ' | $21 |
LOANS_Details_8
LOANS (Details 8) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | $3,631,333 | $2,473,916 |
Covered loans | 403,792 | 530,068 |
Commercial real estate | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 1,213,361 | 755,839 |
Covered loans | 219,496 | 299,401 |
Commercial and industrial | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 790,867 | 446,644 |
Covered loans | 47,252 | 78,437 |
Real estate construction | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 102,920 | 176,226 |
Covered loans | 13,734 | 17,218 |
Commercial and industrial, Commercial real estate and Real estate construction | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 2,107,148 | 1,378,709 |
Covered loans | 280,482 | 395,056 |
Pass | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 1,910,689 | 1,233,037 |
Covered loans | 157,023 | 213,277 |
Pass | Commercial real estate | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 1,058,783 | 645,276 |
Covered loans | 122,631 | 163,167 |
Pass | Commercial and industrial | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 755,869 | 423,295 |
Covered loans | 27,002 | 43,917 |
Pass | Real estate construction | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 96,037 | 164,466 |
Covered loans | 7,390 | 6,193 |
Special Mention | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 71,307 | 53,853 |
Covered loans | 18,613 | 26,812 |
Special Mention | Commercial real estate | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 60,705 | 43,597 |
Covered loans | 14,704 | 17,058 |
Special Mention | Commercial and industrial | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 9,167 | 10,237 |
Covered loans | 3,066 | 6,951 |
Special Mention | Real estate construction | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 1,435 | 19 |
Covered loans | 843 | 2,803 |
Substandard | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 97,847 | 83,037 |
Covered loans | 94,243 | 138,270 |
Substandard | Commercial real estate | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 81,295 | 61,375 |
Covered loans | 76,704 | 111,052 |
Substandard | Commercial and industrial | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 11,357 | 10,431 |
Covered loans | 13,093 | 20,368 |
Substandard | Real estate construction | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 5,195 | 11,231 |
Covered loans | 4,446 | 6,850 |
Doubtful | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 27,305 | 8,782 |
Covered loans | 10,603 | 16,697 |
Doubtful | Commercial real estate | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 12,578 | 5,591 |
Covered loans | 5,457 | 8,124 |
Doubtful | Commercial and industrial | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 14,474 | 2,681 |
Covered loans | 4,091 | 7,201 |
Doubtful | Real estate construction | ' | ' |
Commercial and industrial, commercial real estate and real estate construction credit quality | ' | ' |
Uncovered loans | 253 | 510 |
Covered loans | $1,055 | $1,372 |
LOANS_Details_9
LOANS (Details 9) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans by credit quality | ' | ' |
Uncovered loans | $3,631,333 | $2,473,916 |
Covered loans | 403,792 | 530,068 |
Residential real estate | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 1,430,939 | 1,085,453 |
Covered loans | 113,228 | 123,334 |
Consumer | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 93,246 | 9,754 |
Covered loans | 10,082 | 11,678 |
Residential real estate and consumer loans | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 1,524,185 | 1,095,207 |
Covered loans | 123,310 | 135,012 |
Performing assets | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 1,508,207 | 1,079,692 |
Covered loans | 121,531 | 133,993 |
Performing assets | Residential real estate | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 1,415,206 | 1,070,038 |
Covered loans | 111,491 | 122,346 |
Performing assets | Consumer | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 93,001 | 9,654 |
Covered loans | 10,040 | 11,647 |
Nonperforming assets | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 15,978 | 15,515 |
Covered loans | 1,779 | 1,019 |
Nonperforming assets | Residential real estate | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 15,733 | 15,415 |
Covered loans | 1,737 | 988 |
Nonperforming assets | Consumer | ' | ' |
Loans by credit quality | ' | ' |
Uncovered loans | 245 | 100 |
Covered loans | $42 | $31 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta
ALLOWANCE FOR LOAN LOSSES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Uncovered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | $22,956,000 | ' | $22,956,000 | ' | $14,910,000 |
Recorded investment with related allowance | 17,602,000 | ' | 17,602,000 | ' | 6,966,000 |
Total recorded investment | 40,558,000 | ' | 40,558,000 | ' | 21,876,000 |
Contractual principal balance | 49,124,000 | ' | 49,124,000 | ' | 25,368,000 |
Related allowance | 3,318,000 | ' | 3,318,000 | ' | 2,208,000 |
Average recorded investment | 41,060,000 | 15,016,000 | 42,451,000 | 14,985,000 | ' |
Interest income recognized | 382,000 | 166,000 | 1,602,000 | 216,000 | ' |
Covered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 20,217,000 | ' | 20,217,000 | ' | 23,127,000 |
Recorded investment with related allowance | 4,117,000 | ' | 4,117,000 | ' | 3,897,000 |
Total recorded investment | 24,334,000 | ' | 24,334,000 | ' | 27,024,000 |
Contractual principal balance | 31,906,000 | ' | 31,906,000 | ' | 33,423,000 |
Related allowance | 719,000 | ' | 719,000 | ' | 1,529,000 |
Average recorded investment | 24,451,000 | 27,137,000 | 24,840,000 | 27,896,000 | ' |
Interest income recognized | 393,000 | 1,291,000 | 1,118,000 | 2,053,000 | ' |
Residential real estate | Uncovered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 12,861,000 | ' | 12,861,000 | ' | 8,143,000 |
Recorded investment with related allowance | 4,114,000 | ' | 4,114,000 | ' | 5,871,000 |
Total recorded investment | 16,975,000 | ' | 16,975,000 | ' | 14,014,000 |
Contractual principal balance | 21,148,000 | ' | 21,148,000 | ' | 17,005,000 |
Related allowance | 1,078,000 | ' | 1,078,000 | ' | 1,923,000 |
Average recorded investment | 17,257,000 | 4,970,000 | 17,387,000 | 4,760,000 | ' |
Interest income recognized | 177,000 | ' | 505,000 | ' | ' |
Residential real estate | Covered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 2,307,000 | ' | 2,307,000 | ' | 1,141,000 |
Recorded investment with related allowance | 2,215,000 | ' | 2,215,000 | ' | 1,537,000 |
Total recorded investment | 4,522,000 | ' | 4,522,000 | ' | 2,678,000 |
Contractual principal balance | 5,768,000 | ' | 5,768,000 | ' | 3,389,000 |
Related allowance | 351,000 | ' | 351,000 | ' | 360,000 |
Average recorded investment | 4,537,000 | 891,000 | 4,573,000 | 893,000 | ' |
Interest income recognized | 69,000 | 15,000 | 206,000 | 40,000 | ' |
Commercial real estate | Uncovered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 5,963,000 | ' | 5,963,000 | ' | 4,588,000 |
Recorded investment with related allowance | 4,430,000 | ' | 4,430,000 | ' | ' |
Total recorded investment | 10,393,000 | ' | 10,393,000 | ' | 4,588,000 |
Contractual principal balance | 13,949,000 | ' | 13,949,000 | ' | 4,423,000 |
Related allowance | 723,000 | ' | 723,000 | ' | ' |
Average recorded investment | 10,365,000 | 7,545,000 | 11,324,000 | 7,713,000 | ' |
Interest income recognized | 74,000 | 147,000 | 586,000 | 148,000 | ' |
Commercial real estate | Covered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 16,589,000 | ' | 16,589,000 | ' | 17,138,000 |
Recorded investment with related allowance | 654,000 | ' | 654,000 | ' | 924,000 |
Total recorded investment | 17,243,000 | ' | 17,243,000 | ' | 18,062,000 |
Contractual principal balance | 21,458,000 | ' | 21,458,000 | ' | 21,814,000 |
Related allowance | 63,000 | ' | 63,000 | ' | 230,000 |
Average recorded investment | 17,334,000 | 18,814,000 | 17,488,000 | 19,394,000 | ' |
Interest income recognized | 294,000 | 1,222,000 | 806,000 | 1,810,000 | ' |
Commercial and industrial | Uncovered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 4,021,000 | ' | 4,021,000 | ' | 1,817,000 |
Recorded investment with related allowance | 8,870,000 | ' | 8,870,000 | ' | 1,065,000 |
Total recorded investment | 12,891,000 | ' | 12,891,000 | ' | 2,882,000 |
Contractual principal balance | 13,642,000 | ' | 13,642,000 | ' | 3,548,000 |
Related allowance | 1,436,000 | ' | 1,436,000 | ' | 284,000 |
Average recorded investment | 13,130,000 | 1,280,000 | 13,452,000 | 1,387,000 | ' |
Interest income recognized | 124,000 | 19,000 | 497,000 | 68,000 | ' |
Commercial and industrial | Covered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 897,000 | ' | 897,000 | ' | 3,704,000 |
Recorded investment with related allowance | 883,000 | ' | 883,000 | ' | 1,417,000 |
Total recorded investment | 1,780,000 | ' | 1,780,000 | ' | 5,121,000 |
Contractual principal balance | 1,948,000 | ' | 1,948,000 | ' | 5,503,000 |
Related allowance | 80,000 | ' | 80,000 | ' | 937,000 |
Average recorded investment | 1,789,000 | 6,330,000 | 1,795,000 | 6,545,000 | ' |
Interest income recognized | 18,000 | 37,000 | 51,000 | 153,000 | ' |
Real estate construction | Uncovered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | ' | ' | ' | ' | 359,000 |
Total recorded investment | ' | ' | ' | ' | 359,000 |
Contractual principal balance | ' | ' | ' | ' | 359,000 |
Average recorded investment | ' | 1,221,000 | ' | 1,125,000 | ' |
Real estate construction | Covered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 412,000 | ' | 412,000 | ' | 1,138,000 |
Recorded investment with related allowance | 364,000 | ' | 364,000 | ' | ' |
Total recorded investment | 776,000 | ' | 776,000 | ' | 1,138,000 |
Contractual principal balance | 2,691,000 | ' | 2,691,000 | ' | 2,672,000 |
Related allowance | 224,000 | ' | 224,000 | ' | ' |
Average recorded investment | 767,000 | 1,084,000 | 965,000 | 1,045,000 | ' |
Interest income recognized | 11,000 | 16,000 | 52,000 | 48,000 | ' |
Consumer | Uncovered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 111,000 | ' | 111,000 | ' | 3,000 |
Recorded investment with related allowance | 188,000 | ' | 188,000 | ' | 30,000 |
Total recorded investment | 299,000 | ' | 299,000 | ' | 33,000 |
Contractual principal balance | 385,000 | ' | 385,000 | ' | 33,000 |
Related allowance | 81,000 | ' | 81,000 | ' | 1,000 |
Average recorded investment | 308,000 | ' | 288,000 | ' | ' |
Interest income recognized | 7,000 | ' | 14,000 | ' | ' |
Consumer | Covered loans individually evaluated | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Recorded investment with no related allowance | 12,000 | ' | 12,000 | ' | 6,000 |
Recorded investment with related allowance | 1,000 | ' | 1,000 | ' | 19,000 |
Total recorded investment | 13,000 | ' | 13,000 | ' | 25,000 |
Contractual principal balance | 41,000 | ' | 41,000 | ' | 45,000 |
Related allowance | 1,000 | ' | 1,000 | ' | 2,000 |
Average recorded investment | 14,000 | 18,000 | 19,000 | 19,000 | ' |
Interest income recognized | 1,000 | 1,000 | 3,000 | 2,000 | ' |
Excluding loans accounted for under ASC 310-30 | Greater than | ' | ' | ' | ' | ' |
Impaired loans individually evaluated for impairment | ' | ' | ' | ' | ' |
Nonaccrual loans and troubled debt restructurings individually assesses for impairment | $250,000 | ' | $250,000 | ' | ' |
ALLOWANCE_FOR_LOAN_LOSSES_Deta1
ALLOWANCE FOR LOAN LOSSES (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | ' | ' | ' | ' | $17,746 | |||
Ending allowance for loan losses | 29,892 | ' | 29,892 | ' | 17,746 | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses | 29,892 | ' | 29,892 | ' | 17,746 | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 3,631,333 | ' | 3,631,333 | ' | 2,473,916 | |||
Uncovered | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | 24,360 | 13,974 | 17,746 | 10,945 | ' | |||
Provision (benefit) for loan and lease losses | 7,784 | 2,852 | 17,427 | 8,951 | ' | |||
Gross charge-offs | -4,471 | -4,003 | -12,976 | -8,173 | ' | |||
Recoveries | 2,219 | 2,797 | 7,695 | 3,897 | ' | |||
Net (charge-offs) recoveries | -2,252 | -1,206 | -5,281 | -4,276 | ' | |||
Ending allowance for loan losses | 29,892 | 15,620 | 29,892 | 15,620 | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 3,318 | ' | 3,318 | ' | 2,208 | |||
Collectively evaluated for impairment | 13,887 | ' | 13,887 | ' | 10,767 | |||
Allowance for loan losses | 29,892 | 15,620 | 29,892 | 15,620 | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 40,558 | ' | 40,558 | ' | 21,876 | |||
Collectively evaluated for impairment | 3,104,616 | ' | 3,104,616 | ' | 2,089,351 | |||
Total loans | 3,631,333 | ' | 3,631,333 | ' | 2,473,916 | |||
Uncovered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | ' | ' | ' | ' | 4,771 | |||
Ending allowance for loan losses | 12,687 | ' | 12,687 | ' | 4,771 | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses | 12,687 | ' | 12,687 | ' | 4,771 | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 486,159 | ' | 486,159 | ' | 362,689 | |||
Residential real estate | ' | ' | ' | ' | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 1,430,939 | [1] | ' | 1,430,939 | [1] | ' | 1,085,453 | [1] |
Residential real estate | Uncovered | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | 9,750 | 3,258 | 7,708 | 2,059 | ' | |||
Provision (benefit) for loan and lease losses | 1,943 | 2,904 | 5,502 | 6,380 | ' | |||
Gross charge-offs | -1,597 | -2,314 | -4,414 | -5,085 | ' | |||
Recoveries | 800 | 1,906 | 2,100 | 2,400 | ' | |||
Net (charge-offs) recoveries | -797 | -408 | -2,314 | -2,685 | ' | |||
Ending allowance for loan losses | 10,896 | 5,754 | 10,896 | 5,754 | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 1,078 | ' | 1,078 | ' | 1,923 | |||
Collectively evaluated for impairment | 4,572 | ' | 4,572 | ' | 2,697 | |||
Allowance for loan losses | 10,896 | 5,754 | 10,896 | 5,754 | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 16,975 | ' | 16,975 | ' | 14,014 | |||
Collectively evaluated for impairment | 1,163,437 | ' | 1,163,437 | ' | 817,911 | |||
Total loans | 1,430,939 | ' | 1,430,939 | ' | 1,085,453 | |||
Residential real estate | Uncovered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | ' | ' | ' | ' | 3,088 | |||
Ending allowance for loan losses | 5,246 | ' | 5,246 | ' | 3,088 | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses | 5,246 | ' | 5,246 | ' | 3,088 | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 250,527 | ' | 250,527 | ' | 253,528 | |||
Commercial real estate | ' | ' | ' | ' | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 1,213,361 | ' | 1,213,361 | ' | 755,839 | |||
Commercial real estate | Uncovered | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | 7,846 | 4,771 | 4,267 | 4,265 | ' | |||
Provision (benefit) for loan and lease losses | 3,176 | -138 | 9,100 | 772 | ' | |||
Gross charge-offs | -1,783 | -772 | -6,612 | -1,561 | ' | |||
Recoveries | 1,017 | 185 | 3,501 | 570 | ' | |||
Net (charge-offs) recoveries | -766 | -587 | -3,111 | -991 | ' | |||
Ending allowance for loan losses | 10,256 | 4,046 | 10,256 | 4,046 | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 723 | ' | 723 | ' | ' | |||
Collectively evaluated for impairment | 3,598 | ' | 3,598 | ' | 2,862 | |||
Allowance for loan losses | 10,256 | 4,046 | 10,256 | 4,046 | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 10,393 | ' | 10,393 | ' | 4,588 | |||
Collectively evaluated for impairment | 995,962 | ' | 995,962 | ' | 652,952 | |||
Total loans | 1,213,361 | ' | 1,213,361 | ' | 755,839 | |||
Commercial real estate | Uncovered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | ' | ' | ' | ' | 1,405 | |||
Ending allowance for loan losses | 5,935 | ' | 5,935 | ' | 1,405 | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses | 5,935 | ' | 5,935 | ' | 1,405 | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 207,006 | ' | 207,006 | ' | 98,299 | |||
Commercial and industrial | ' | ' | ' | ' | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 790,867 | ' | 790,867 | ' | 446,644 | |||
Commercial and industrial | Uncovered | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | 5,140 | 3,608 | 3,404 | 4,162 | ' | |||
Provision (benefit) for loan and lease losses | 2,363 | 73 | 4,124 | -233 | ' | |||
Gross charge-offs | -826 | -623 | -1,452 | -926 | ' | |||
Recoveries | 79 | 129 | 680 | 184 | ' | |||
Net (charge-offs) recoveries | -747 | -494 | -772 | -742 | ' | |||
Ending allowance for loan losses | 6,756 | 3,187 | 6,756 | 3,187 | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 1,436 | ' | 1,436 | ' | 284 | |||
Collectively evaluated for impairment | 4,805 | ' | 4,805 | ' | 2,959 | |||
Allowance for loan losses | 6,756 | 3,187 | 6,756 | 3,187 | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 12,891 | ' | 12,891 | ' | 2,882 | |||
Collectively evaluated for impairment | 760,884 | ' | 760,884 | ' | 437,777 | |||
Total loans | 790,867 | ' | 790,867 | ' | 446,644 | |||
Commercial and industrial | Uncovered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | ' | ' | ' | ' | 161 | |||
Ending allowance for loan losses | 515 | ' | 515 | ' | 161 | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses | 515 | ' | 515 | ' | 161 | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 17,092 | ' | 17,092 | ' | 5,985 | |||
Real estate construction | ' | ' | ' | ' | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 102,920 | [1] | ' | 102,920 | [1] | ' | 176,226 | [1] |
Real estate construction | Uncovered | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | 1,398 | 1,862 | 2,027 | 268 | ' | |||
Provision (benefit) for loan and lease losses | 178 | 152 | -1,306 | 1,789 | ' | |||
Gross charge-offs | -210 | -28 | -319 | -96 | ' | |||
Recoveries | ' | 170 | 964 | 195 | ' | |||
Net (charge-offs) recoveries | -210 | 142 | 645 | 99 | ' | |||
Ending allowance for loan losses | 1,366 | 2,156 | 1,366 | 2,156 | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Collectively evaluated for impairment | 520 | ' | 520 | ' | 2,025 | |||
Allowance for loan losses | 1,366 | 2,156 | 1,366 | 2,156 | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | ' | ' | ' | ' | 359 | |||
Collectively evaluated for impairment | 94,203 | ' | 94,203 | ' | 173,897 | |||
Total loans | 102,920 | ' | 102,920 | ' | 176,226 | |||
Real estate construction | Uncovered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | ' | ' | ' | ' | 2 | |||
Ending allowance for loan losses | 846 | ' | 846 | ' | 2 | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses | 846 | ' | 846 | ' | 2 | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 8,717 | ' | 8,717 | ' | 1,970 | |||
Consumer | ' | ' | ' | ' | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | 93,246 | ' | 93,246 | ' | 9,754 | |||
Consumer | Uncovered | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | 226 | 475 | 340 | 191 | ' | |||
Provision (benefit) for loan and lease losses | 124 | -139 | 7 | 243 | ' | |||
Gross charge-offs | -55 | -266 | -179 | -505 | ' | |||
Recoveries | 323 | 407 | 450 | 548 | ' | |||
Net (charge-offs) recoveries | 268 | 141 | 271 | 43 | ' | |||
Ending allowance for loan losses | 618 | 477 | 618 | 477 | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 81 | ' | 81 | ' | 1 | |||
Collectively evaluated for impairment | 392 | ' | 392 | ' | 224 | |||
Allowance for loan losses | 618 | 477 | 618 | 477 | ' | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 299 | ' | 299 | ' | 33 | |||
Collectively evaluated for impairment | 90,130 | ' | 90,130 | ' | 6,814 | |||
Total loans | 93,246 | ' | 93,246 | ' | 9,754 | |||
Consumer | Uncovered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' | |||
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' | |||
Balance at beginning of period | ' | ' | ' | ' | 115 | |||
Ending allowance for loan losses | 145 | ' | 145 | ' | 115 | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses | 145 | ' | 145 | ' | 115 | |||
Balance of loans: | ' | ' | ' | ' | ' | |||
Total loans | $2,817 | ' | $2,817 | ' | $2,907 | |||
[1] | Amounts represent loans for which the Company has elected the fair value option. See Note 3. |
ALLOWANCE_FOR_LOAN_LOSSES_Deta2
ALLOWANCE FOR LOAN LOSSES (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | $40,381 |
Ending allowance for loan losses | 25,768 | ' | 25,768 | ' | 40,381 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Allowance for loan losses | 25,768 | ' | 25,768 | ' | 40,381 |
Balance of loans: | ' | ' | ' | ' | ' |
Total loans, covered | 403,792 | ' | 403,792 | ' | 530,068 |
Covered | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | 32,743 | 46,312 | 40,381 | 51,473 | ' |
Provision (benefit) for loan and lease losses | -6,275 | -727 | -16,094 | -7,103 | ' |
Gross charge-offs | -4,332 | -6,414 | -12,410 | -16,084 | ' |
Recoveries | 3,632 | 3,402 | 13,891 | 14,287 | ' |
Net (charge-offs) recoveries | -700 | -3,012 | 1,481 | -1,797 | ' |
Ending allowance for loan losses | 25,768 | 42,573 | 25,768 | 42,573 | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 719 | ' | 719 | ' | 1,529 |
Collectively evaluated for impairment | 823 | ' | 823 | ' | 3,782 |
Allowance for loan losses | 25,768 | 42,573 | 25,768 | 42,573 | ' |
Balance of loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 24,334 | ' | 24,334 | ' | 27,024 |
Collectively evaluated for impairment | 36,044 | ' | 36,044 | ' | 62,058 |
Total loans, covered | 403,792 | ' | 403,792 | ' | 530,068 |
Covered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | 35,070 |
Ending allowance for loan losses | 24,226 | ' | 24,226 | ' | 35,070 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Allowance for loan losses | 24,226 | ' | 24,226 | ' | 35,070 |
Balance of loans: | ' | ' | ' | ' | ' |
Total loans, covered | 343,414 | ' | 343,414 | ' | 440,986 |
Residential real estate | Covered | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | 5,312 | 4,951 | 4,696 | 5,716 | ' |
Provision (benefit) for loan and lease losses | -1,412 | 274 | -629 | ' | ' |
Gross charge-offs | -371 | -963 | -1,646 | -2,183 | ' |
Recoveries | 558 | 373 | 1,666 | 1,102 | ' |
Net (charge-offs) recoveries | 187 | -590 | 20 | -1,081 | ' |
Ending allowance for loan losses | 4,087 | 4,635 | 4,087 | 4,635 | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 351 | ' | 351 | ' | 360 |
Collectively evaluated for impairment | 133 | ' | 133 | ' | 192 |
Allowance for loan losses | 4,087 | 4,635 | 4,087 | 4,635 | ' |
Balance of loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 4,522 | ' | 4,522 | ' | 2,678 |
Collectively evaluated for impairment | 17,943 | ' | 17,943 | ' | 20,622 |
Total loans, covered | 113,228 | ' | 113,228 | ' | 123,334 |
Residential real estate | Covered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | 4,144 |
Ending allowance for loan losses | 3,603 | ' | 3,603 | ' | 4,144 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Allowance for loan losses | 3,603 | ' | 3,603 | ' | 4,144 |
Balance of loans: | ' | ' | ' | ' | ' |
Total loans, covered | 90,763 | ' | 90,763 | ' | 100,034 |
Commercial real estate | Covered | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | 21,275 | 27,387 | 26,394 | 30,150 | ' |
Provision (benefit) for loan and lease losses | -3,191 | -204 | -11,030 | -4,205 | ' |
Gross charge-offs | -3,106 | -2,451 | -6,301 | -8,291 | ' |
Recoveries | 1,585 | 1,804 | 7,500 | 8,882 | ' |
Net (charge-offs) recoveries | -1,521 | -647 | 1,199 | 591 | ' |
Ending allowance for loan losses | 16,563 | 26,536 | 16,563 | 26,536 | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 63 | ' | 63 | ' | 230 |
Collectively evaluated for impairment | 158 | ' | 158 | ' | 3,010 |
Allowance for loan losses | 16,563 | 26,536 | 16,563 | 26,536 | ' |
Balance of loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 17,243 | ' | 17,243 | ' | 18,062 |
Collectively evaluated for impairment | 5,059 | ' | 5,059 | ' | 18,570 |
Total loans, covered | 219,496 | ' | 219,496 | ' | 299,401 |
Commercial real estate | Covered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | 23,154 |
Ending allowance for loan losses | 16,342 | ' | 16,342 | ' | 23,154 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Allowance for loan losses | 16,342 | ' | 16,342 | ' | 23,154 |
Balance of loans: | ' | ' | ' | ' | ' |
Total loans, covered | 197,194 | ' | 197,194 | ' | 262,769 |
Commercial and industrial | Covered | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | 4,540 | 10,512 | 7,227 | 10,915 | ' |
Provision (benefit) for loan and lease losses | -1,132 | -268 | -3,633 | -1,178 | ' |
Gross charge-offs | -565 | -2,112 | -3,092 | -3,818 | ' |
Recoveries | 1,067 | 569 | 3,408 | 2,782 | ' |
Net (charge-offs) recoveries | 502 | -1,543 | 316 | -1,036 | ' |
Ending allowance for loan losses | 3,910 | 8,701 | 3,910 | 8,701 | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 80 | ' | 80 | ' | 937 |
Collectively evaluated for impairment | 517 | ' | 517 | ' | 471 |
Allowance for loan losses | 3,910 | 8,701 | 3,910 | 8,701 | ' |
Balance of loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 1,780 | ' | 1,780 | ' | 5,121 |
Collectively evaluated for impairment | 12,495 | ' | 12,495 | ' | 21,909 |
Total loans, covered | 47,252 | ' | 47,252 | ' | 78,437 |
Commercial and industrial | Covered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | 5,819 |
Ending allowance for loan losses | 3,313 | ' | 3,313 | ' | 5,819 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Allowance for loan losses | 3,313 | ' | 3,313 | ' | 5,819 |
Balance of loans: | ' | ' | ' | ' | ' |
Total loans, covered | 32,977 | ' | 32,977 | ' | 51,407 |
Real estate construction | Covered | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | 1,519 | 3,359 | 1,984 | 4,509 | ' |
Provision (benefit) for loan and lease losses | -500 | -492 | -678 | -1,516 | ' |
Gross charge-offs | -219 | -803 | -1,223 | -1,613 | ' |
Recoveries | 352 | 543 | 1,069 | 1,227 | ' |
Net (charge-offs) recoveries | 133 | -260 | -154 | -386 | ' |
Ending allowance for loan losses | 1,152 | 2,607 | 1,152 | 2,607 | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 224 | ' | 224 | ' | ' |
Collectively evaluated for impairment | 14 | ' | 14 | ' | 108 |
Allowance for loan losses | 1,152 | 2,607 | 1,152 | 2,607 | ' |
Balance of loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 776 | ' | 776 | ' | 1,138 |
Collectively evaluated for impairment | 427 | ' | 427 | ' | 812 |
Total loans, covered | 13,734 | ' | 13,734 | ' | 17,218 |
Real estate construction | Covered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | 1,876 |
Ending allowance for loan losses | 914 | ' | 914 | ' | 1,876 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Allowance for loan losses | 914 | ' | 914 | ' | 1,876 |
Balance of loans: | ' | ' | ' | ' | ' |
Total loans, covered | 12,531 | ' | 12,531 | ' | 15,268 |
Consumer | Covered | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | 97 | 103 | 80 | 183 | ' |
Provision (benefit) for loan and lease losses | -40 | -37 | -124 | -204 | ' |
Gross charge-offs | -71 | -85 | -148 | -179 | ' |
Recoveries | 70 | 113 | 248 | 294 | ' |
Net (charge-offs) recoveries | -1 | 28 | 100 | 115 | ' |
Ending allowance for loan losses | 56 | 94 | 56 | 94 | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 1 | ' | 1 | ' | 2 |
Collectively evaluated for impairment | 1 | ' | 1 | ' | 1 |
Allowance for loan losses | 56 | 94 | 56 | 94 | ' |
Balance of loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 13 | ' | 13 | ' | 25 |
Collectively evaluated for impairment | 120 | ' | 120 | ' | 145 |
Total loans, covered | 10,082 | ' | 10,082 | ' | 11,678 |
Consumer | Covered | Accounted for under ASC 310-30 | ' | ' | ' | ' | ' |
Changes in the allowance and the allocation of the allowance for loans | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | 77 |
Ending allowance for loan losses | 54 | ' | 54 | ' | 77 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Allowance for loan losses | 54 | ' | 54 | ' | 77 |
Balance of loans: | ' | ' | ' | ' | ' |
Total loans, covered | $9,949 | ' | $9,949 | ' | $11,508 |
ACQUIRED_LOANS_AND_LOSS_SHARE_2
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | ' | ' | ' | ' | ' |
Percentage of losses incurred to be reimbursed by FDIC for loans covered by loss sharing agreements | ' | ' | 80.00% | ' | ' |
Period of clawback payment to FDIC following the acquisition in event actual losses fail to reach stated levels | ' | ' | '10 years 45 days | ' | ' |
Estimated FDIC clawback liability | $25,723,000 | ' | $25,723,000 | ' | $24,887,000 |
A roll forward is a reconciliation of a concept from the beginning of a period to the end of a period. | ' | ' | ' | ' | ' |
Balance at beginning of period | 305,592,000 | 325,724,000 | 302,287,000 | 216,970,000 | ' |
Additions due to acquisitions | ' | ' | 32,764,000 | 158,221,000 | ' |
Discount accretion | -22,417,000 | -24,023,000 | -68,249,000 | -75,582,000 | ' |
Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations | 32,004,000 | 24,407,000 | 72,911,000 | 64,856,000 | ' |
Other activity, net | -14,584,000 | -10,276,000 | -39,118,000 | -48,633,000 | ' |
Balance at end of period | 300,595,000 | 315,832,000 | 300,595,000 | 315,832,000 | ' |
Expected cash flows for loans | ' | ' | ' | ' | ' |
Identified improvement in the cash flow expectations | 32,000,000 | 24,400,000 | 72,900,000 | 64,900,000 | ' |
Provision for loan losses - covered: | ' | ' | ' | ' | ' |
Total provision (benefit) for loan losses-covered | -6,275,000 | -727,000 | -16,094,000 | -7,103,000 | ' |
Less: FDIC loss share income: | ' | ' | ' | ' | ' |
Total loss sharing expense due to provision for loan losses-covered | -2,802,000 | -999,000 | -6,765,000 | -9,193,000 | ' |
Net (increase) decrease to income before taxes: | ' | ' | ' | ' | ' |
Net (increase) decrease to income before taxes | -3,473,000 | 272,000 | -9,329,000 | 2,090,000 | ' |
Accounted for under ASC 310-30 | ' | ' | ' | ' | ' |
Expected cash flows for loans | ' | ' | ' | ' | ' |
Contractual cash flows | 1,397,034,000 | ' | 1,397,034,000 | ' | 1,357,070,000 |
Non-accretable difference | -266,866,000 | ' | -266,866,000 | ' | -251,108,000 |
Accretable yield | -300,595,000 | ' | -300,595,000 | ' | -302,287,000 |
Loans accounted | 829,573,000 | ' | 829,573,000 | ' | 803,675,000 |
Provision for loan losses - covered: | ' | ' | ' | ' | ' |
Impairment (benefit) recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 | -1,329,000 | 1,615,000 | 1,036,000 | 9,989,000 | ' |
Less: FDIC loss share income: | ' | ' | ' | ' | ' |
Income recorded as a result of re-estimation of cash flows on loans | 176,000 | 875,000 | 3,680,000 | 4,481,000 | ' |
Net (increase) decrease to income before taxes: | ' | ' | ' | ' | ' |
Net (income) expense recorded as a result of re-estimation of cash flows on loans | -1,505,000 | 740,000 | -2,644,000 | 5,508,000 | ' |
Cash flow improvements related to covered loans | 17,400,000 | 6,800,000 | 33,900,000 | 38,500,000 | ' |
Accounted for under ASC 310-20 and ASC 310-40 | ' | ' | ' | ' | ' |
Provision for loan losses - covered: | ' | ' | ' | ' | ' |
Additional benefit recorded, net of charge-offs, for covered loans | -4,946,000 | -2,342,000 | -17,130,000 | -17,092,000 | ' |
Less: FDIC loss share income: | ' | ' | ' | ' | ' |
Expense recorded, to offset provision (benefit), for covered loans | -2,978,000 | -1,874,000 | -10,445,000 | -13,674,000 | ' |
Net (increase) decrease to income before taxes: | ' | ' | ' | ' | ' |
Net income recorded, for covered loans | -1,968,000 | -468,000 | -6,685,000 | -3,418,000 | ' |
CF Bancorp | ' | ' | ' | ' | ' |
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | ' | ' | ' | ' | ' |
Estimated FDIC clawback liability | 21,500,000 | ' | 21,500,000 | ' | 21,000,000 |
First Banking Center | ' | ' | ' | ' | ' |
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | ' | ' | ' | ' | ' |
Estimated FDIC clawback liability | 4,200,000 | ' | 4,200,000 | ' | 3,900,000 |
Peoples State Bank | ' | ' | ' | ' | ' |
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | ' | ' | ' | ' | ' |
Estimated FDIC clawback liability | $0 | ' | $0 | ' | $0 |
ACQUIRED_LOANS_AND_LOSS_SHARE_3
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
FDIC Indemnification Asset | ' | ' | ' | ' |
Balance at beginning of period | $102,694 | $171,956 | $131,861 | $226,356 |
Accretion | -6,663 | -6,032 | -18,887 | -21,088 |
Sales and write-downs of other real estate owned | -88 | -1,070 | -841 | -3,388 |
Net effect of change in allowance on covered assets | -5,484 | -8,179 | -13,639 | -29,052 |
Reimbursements requested from FDIC (reclassification to FDIC receivable) | -8,018 | -8,350 | -16,053 | -24,503 |
Balance at the end of the period | 82,441 | 148,325 | 82,441 | 148,325 |
FDIC Receivable | ' | ' | ' | ' |
Balance at beginning of period | 7,198 | 17,573 | 7,783 | 17,999 |
Sales and write-downs of other real estate owned (covered) | 233 | 861 | -14 | 2,288 |
Reimbursements requested from FDIC (reclassification to FDIC receivable) | 8,018 | 8,350 | 16,053 | 24,503 |
Decrease due to recoveries net of additional claimable expenses incurred | -269 | -2,713 | -4,588 | -2,326 |
Claim payments received from the FDIC | -2,307 | -10,541 | -6,361 | -28,934 |
Balance at the end of the period | $12,873 | $13,530 | $12,873 | $13,530 |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Changes in other real estate owned | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | $29,955 | $24,703 |
Additions due to acquisitions | ' | ' | 30,878 | 18,448 |
Loans transferred to other real estate owned and transfers to other real estate owned due to branch or building operation closings or consolidations | ' | ' | 18,878 | 19,232 |
Disposals | ' | ' | -30,305 | -23,288 |
Write-downs | ' | ' | -4,466 | -5,722 |
Balance at the end of the period | 44,940 | 33,373 | 44,940 | 33,373 |
Income and expenses related to other real estate owned | ' | ' | ' | ' |
Net gain on sale | 2,427 | 553 | 6,660 | 3,097 |
Write-downs | -2,062 | -2,163 | -4,466 | -5,722 |
Net operating (expenses) income | -838 | -173 | -2,456 | -819 |
Total | -473 | -1,783 | -262 | -3,444 |
Uncovered | ' | ' | ' | ' |
Changes in other real estate owned | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 18,384 | 869 |
Additions due to acquisitions | ' | ' | 30,878 | 18,448 |
Loans transferred to other real estate owned and transfers to other real estate owned due to branch or building operation closings or consolidations | ' | ' | 10,889 | 8,598 |
Disposals | ' | ' | -24,116 | -9,995 |
Write-downs | ' | ' | -2,861 | -1,408 |
Balance at the end of the period | 33,174 | 16,512 | 33,174 | 16,512 |
Income and expenses related to other real estate owned | ' | ' | ' | ' |
Net gain on sale | 2,367 | 43 | 6,369 | 2,461 |
Write-downs | -1,361 | -155 | -2,861 | -1,408 |
Net operating (expenses) income | -778 | -200 | -2,323 | -937 |
Total | 228 | -312 | 1,185 | 116 |
Covered | ' | ' | ' | ' |
Changes in other real estate owned | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 11,571 | 23,834 |
Loans transferred to other real estate owned and transfers to other real estate owned due to branch or building operation closings or consolidations | ' | ' | 7,989 | 10,634 |
Disposals | ' | ' | -6,189 | -13,293 |
Write-downs | ' | ' | -1,605 | -4,314 |
Balance at the end of the period | 11,766 | 16,861 | 11,766 | 16,861 |
Income and expenses related to other real estate owned | ' | ' | ' | ' |
Net gain on sale | 60 | 510 | 291 | 636 |
Write-downs | -701 | -2,008 | -1,605 | -4,314 |
Net operating (expenses) income | -60 | 27 | -133 | 118 |
Total | ($701) | ($1,471) | ($1,447) | ($3,560) |
CORE_DEPOSIT_INTANGIBLES_Detai
CORE DEPOSIT INTANGIBLES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Net carrying amount of CDIs | ' | ' | ' | ' | ' |
Gross carrying amount | $0 | ' | $0 | ' | $0 |
Net carrying amount | 13,696,000 | ' | 13,696,000 | ' | 13,205,000 |
Amortization expense recognized | ' | ' | 2,140,000 | 2,019,000 | ' |
Core deposit intangibles | ' | ' | ' | ' | ' |
Core deposit intangibles | ' | ' | ' | ' | ' |
Estimated remaining average useful life | ' | ' | '7 years 6 months 22 days | ' | ' |
Net carrying amount of CDIs | ' | ' | ' | ' | ' |
Gross carrying amount | 20,658,000 | ' | 20,658,000 | ' | 19,331,000 |
Accumulated amortization | -6,962,000 | ' | -6,962,000 | ' | -6,126,000 |
Net carrying amount | 13,696,000 | ' | 13,696,000 | ' | 13,205,000 |
Amortization expense recognized | 680,000 | 663,000 | 2,100,000 | 2,000,000 | ' |
Core deposit intangibles written-off | $1,000,000 | ' | ' | ' | ' |
LOAN_SERVICING_RIGHTS_Details
LOAN SERVICING RIGHTS (Details) (Change in accounting principle for loan servicing rights, Restatement adjustment, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jan. 02, 2013 |
Change in accounting principle for loan servicing rights | Restatement adjustment | ' |
Change in accounting principle | ' |
Cumulative adjustment to retained earnings due to change in policy | $31 |
LOAN_SERVICING_RIGHTS_Details_
LOAN SERVICING RIGHTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Activity for loan servicing rights and the related fair value changes | ' | ' | ' | ' |
Fair value, beginning of period | ' | ' | $78,603 | ' |
Additions from loans sold with servicing retained | ' | ' | -6,046 | -20,130 |
Changes due to valuation inputs or assumptions | ' | ' | 11,036 | -3,997 |
Fair value, end of period | 74,380 | ' | 74,380 | ' |
Commercial Real Estate | ' | ' | ' | ' |
Activity for loan servicing rights and the related fair value changes | ' | ' | ' | ' |
Fair value, beginning of period | 837 | 438 | 368 | 518 |
Additions due to acquisition | ' | ' | 767 | ' |
Changes in fair value due to reductions from loans paid off during the period | -57 | -6 | -125 | -10 |
Changes due to valuation inputs or assumptions | -18 | -20 | -248 | -96 |
Fair value, end of period | 762 | 412 | 762 | 412 |
Principal balance of loans serviced | 222,262 | 281,091 | 222,262 | 281,091 |
Agricultural | ' | ' | ' | ' |
Activity for loan servicing rights and the related fair value changes | ' | ' | ' | ' |
Fair value, beginning of period | 876 | 1,099 | 962 | 1,456 |
Additions from loans sold with servicing retained | 2 | 5 | 125 | 70 |
Changes in fair value due to reductions from loans paid off during the period | -83 | -74 | -220 | -397 |
Changes due to valuation inputs or assumptions | -24 | 15 | -96 | -84 |
Fair value, end of period | 771 | 1,045 | 771 | 1,045 |
Principal balance of loans serviced | 37,301 | 47,824 | 37,301 | 47,824 |
Mortgage | ' | ' | ' | ' |
Activity for loan servicing rights and the related fair value changes | ' | ' | ' | ' |
Fair value, beginning of period | 72,391 | 63,650 | 77,273 | 3,683 |
Additions due to acquisition | ' | ' | ' | 41,967 |
Additions from loans sold with servicing retained | 2,296 | 6,628 | 5,921 | 20,060 |
Changes in fair value due to reductions from loans paid off during the period | -1,706 | -1,576 | -4,110 | -4,167 |
Changes due to valuation inputs or assumptions | -134 | 1,592 | -6,237 | 8,751 |
Fair value, end of period | 72,847 | 70,294 | 72,847 | 70,294 |
Principal balance of loans serviced | 7,069,937 | 7,022,362 | 7,069,937 | 7,022,362 |
Loan Servicing Rights | ' | ' | ' | ' |
Activity for loan servicing rights and the related fair value changes | ' | ' | ' | ' |
Fair value, beginning of period | 74,104 | 65,187 | 78,603 | 5,657 |
Additions due to acquisition | ' | ' | 767 | 41,967 |
Additions from loans sold with servicing retained | 2,298 | 6,633 | 6,046 | 20,130 |
Changes in fair value due to reductions from loans paid off during the period | -1,846 | -1,656 | -4,455 | -4,574 |
Changes due to valuation inputs or assumptions | -176 | 1,587 | -6,581 | 8,571 |
Fair value, end of period | 74,380 | 71,751 | 74,380 | 71,751 |
Principal balance of loans serviced | $7,329,500 | $7,351,277 | $7,329,500 | $7,351,277 |
LOAN_SERVICING_RIGHTS_Details_1
LOAN SERVICING RIGHTS (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Agricultural | Agricultural | Agricultural | Agricultural | Agricultural | Agricultural | Mortgage | Mortgage | Mortgage | Mortgage | Mortgage | Mortgage | |||||
Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | |||||||||||
Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment speed (as a percent) | ' | ' | ' | ' | ' | ' | 6.37% | 8.50% | 50.00% | 50.00% | ' | ' | 5.57% | 4.98% | 47.08% | 53.16% | ' | ' | 3.77% | 3.55% | 44.78% | 44.49% |
WA discount rate (as a percent) | ' | ' | ' | ' | 19.47% | 20.00% | ' | ' | ' | ' | 15.00% | 15.00% | ' | ' | ' | ' | 9.65% | 10.17% | ' | ' | ' | ' |
WA cost to service/per year | ' | ' | ' | ' | $470 | $467 | ' | ' | ' | ' | $200 | $200 | ' | ' | ' | ' | $57 | $57 | ' | ' | ' | ' |
WA Ancillary income/per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 45 | ' | ' | ' | ' |
WA float range (as a percent) | ' | ' | ' | ' | 0.56% | 0.56% | ' | ' | ' | ' | 0.56% | 0.56% | ' | ' | ' | ' | ' | ' | 1.15% | 0.73% | 1.83% | 1.54% |
Loan servicing fee income | $3,100,000 | $4,800,000 | $10,400,000 | $13,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DERIVATIVE_INSTRUMENTS_Details
DERIVATIVE INSTRUMENTS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | derivative | |
DERIVATIVE INSTRUMENTS | ' | ' |
Number of derivatives designated as qualifying accounting hedging instruments | 0 | ' |
Notional Amount | ' | ' |
Derivative assets included in "Other assets" | $93,465 | $236,431 |
Derivative liabilities included in "Other liabilities" | 181,559 | ' |
Fair Value | ' | ' |
Net derivatives assets | 1,798 | 2,630 |
Net derivatives liabilities | 361 | ' |
Forward contracts related to mortgage loans to be delivered for sale | ' | ' |
Notional Amount | ' | ' |
Derivative assets included in "Other assets" | ' | 168,746 |
Derivative liabilities included in "Other liabilities" | 167,795 | ' |
Fair Value | ' | ' |
Derivative assets included in "Other assets" | ' | 1,484 |
Derivative liabilities included in "Other liabilities" | 166 | ' |
Interest rate lock commitments | ' | ' |
Notional Amount | ' | ' |
Derivative assets included in "Other assets" | 77,078 | 67,685 |
Fair Value | ' | ' |
Derivative assets included in "Other assets" | 1,429 | 1,146 |
Customer initiated derivatives | ' | ' |
Notional Amount | ' | ' |
Derivative assets included in "Other assets" | 16,387 | ' |
Derivative liabilities included in "Other liabilities" | 13,764 | ' |
Fair Value | ' | ' |
Derivative assets included in "Other assets" | 369 | ' |
Derivative liabilities included in "Other liabilities" | $195 | ' |
DERIVATIVE_INSTRUMENTS_Details1
DERIVATIVE INSTRUMENTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative instruments | ' | ' | ' | ' |
Net gains (losses) relating to free-standing derivative instruments | ($1,312) | $1,421 | ($10,065) | $18,714 |
Forward contracts related to mortgage loans to be delivered for sale | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' |
Net gains (losses) relating to free-standing derivative instruments | -463 | -3,741 | -10,372 | 22,386 |
Interest rate lock commitments | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' |
Net gains (losses) relating to free-standing derivative instruments | -853 | 5,162 | 284 | -3,672 |
Customer initiated derivatives | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' |
Net gains (losses) relating to free-standing derivative instruments | $4 | ' | $23 | ' |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
COMMITMENTS, CONTINGENCIES AND GUARANTEES | ' | ' |
Allowance for credit losses on lending-related commitments | $498 | $1,000 |
Contingencies and Guarantees | ' | ' |
Total commitments | 1,207,514 | 809,152 |
Fixed Rate | ' | ' |
Contingencies and Guarantees | ' | ' |
Total commitments | 660,579 | 592,118 |
Variable Rate | ' | ' |
Contingencies and Guarantees | ' | ' |
Total commitments | 546,935 | 217,034 |
Commitments to extend | ' | ' |
Contingencies and Guarantees | ' | ' |
Total commitments | 1,134,308 | 740,139 |
Commitments to extend | Fixed Rate | ' | ' |
Contingencies and Guarantees | ' | ' |
Total commitments | 591,410 | 523,666 |
Commitments to extend | Variable Rate | ' | ' |
Contingencies and Guarantees | ' | ' |
Total commitments | 542,898 | 216,473 |
Standby letters of credit | ' | ' |
Contingencies and Guarantees | ' | ' |
Total commitments | 73,206 | 69,013 |
Standby letters of credit | Fixed Rate | ' | ' |
Contingencies and Guarantees | ' | ' |
Total commitments | 69,169 | 68,452 |
Standby letters of credit | Variable Rate | ' | ' |
Contingencies and Guarantees | ' | ' |
Total commitments | $4,037 | $561 |
COMMITMENTS_CONTINGENCIES_AND_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Contingencies and Guarantees | ' | ' |
Standby letters of credit outstanding | $1,207,514,000 | $809,152,000 |
Warranty liabilities | 4,000,000 | 4,800,000 |
Performance guarantee | ' | ' |
Contingencies and Guarantees | ' | ' |
Outstanding balance of loans | 65,300,000 | 79,500,000 |
Maximum potential amount of undiscounted future payments | 33,400,000 | 42,900,000 |
Recourse liability | 275,000 | 567,000 |
Standby letters of credit | ' | ' |
Contingencies and Guarantees | ' | ' |
Standby letters of credit outstanding | $73,200,000 | $69,000,000 |
SHORTTERM_BORROWINGS_AND_LONGT2
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Short-term borrowings and long-term debt | ' | ' | ' |
Amount, short-term borrowings and long-term debt | 435,582,000 | $435,582,000 | $270,913,000 |
Weighted Average Rate, short-term borrowings and long-term debt (as a percent) | 1.68% | 1.68% | 3.01% |
Amount, short-term borrowings | 150,573,000 | 150,573,000 | 71,876,000 |
Weighted Average Rate, short-term borrowings (as a percent) | 0.22% | 0.22% | 1.64% |
Amount, long-term debt | 285,009,000 | 285,009,000 | 199,037,000 |
Weighted Average Rate, long-term debt (as a percent) | 2.45% | 2.45% | 3.50% |
Short-term borrowings | ' | ' | ' |
Carrying value | 734,489,000 | 734,489,000 | 620,083,000 |
Maximum | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Additional maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | ' |
Securities sold under agreements to repurchase: 0.10%-0.28% floating-rate notes | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Amount, short-term borrowings | 80,573,000 | 80,573,000 | 36,876,000 |
Weighted Average Rate, short-term borrowings (as a percent) | 0.21% | 0.21% | 0.20% |
Securities sold under agreements to repurchase: 0.10%-0.28% floating-rate notes | Minimum | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Interest rate (as a percent) | 0.10% | 0.10% | ' |
Securities sold under agreements to repurchase: 0.10%-0.28% floating-rate notes | Maximum | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Interest rate (as a percent) | 0.28% | 0.28% | ' |
FHLB advances: 0.31% fixed-rate notes | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Amount, short-term borrowings | 50,000,000 | 50,000,000 | ' |
Weighted Average Rate, short-term borrowings (as a percent) | 0.31% | 0.31% | ' |
Amount, long-term debt | 217,466,000 | 217,466,000 | 130,368,000 |
Weighted Average Rate, long-term debt (as a percent) | 1.99% | 1.99% | 3.28% |
Interest rate (as a percent) | 0.31% | 0.31% | ' |
Advances payable | 210,200,000 | 210,200,000 | 121,200,000 |
Purchase accounting premiums | 7,300,000 | 7,300,000 | 9,200,000 |
FHLB advances: 0.31% fixed-rate notes | Minimum | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Interest rate (as a percent) | 0.19% | 0.19% | ' |
FHLB advances: 0.31% fixed-rate notes | Maximum | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Interest rate (as a percent) | 7.44% | 7.44% | ' |
FHLB advances: 0.07% floating-rate | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Amount, short-term borrowings | 20,000,000 | 20,000,000 | ' |
Weighted Average Rate, short-term borrowings (as a percent) | 0.07% | 0.07% | ' |
Interest rate (as a percent) | 0.07% | 0.07% | ' |
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Amount, long-term debt | 56,853,000 | 56,853,000 | 58,079,000 |
Weighted Average Rate, long-term debt (as a percent) | 4.19% | 4.19% | 4.19% |
Purchase accounting premiums | 6,900,000 | 6,900,000 | 8,100,000 |
Balance amount | 50,000,000 | 50,000,000 | 50,000,000 |
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Minimum | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Interest rate (as a percent) | 4.11% | 4.11% | ' |
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Maximum | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Interest rate (as a percent) | 4.30% | 4.30% | ' |
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 1.45-2.85% due 2034 to 2035 | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Amount, long-term debt | 10,690,000 | 10,690,000 | 10,590,000 |
Weighted Average Rate, long-term debt (as a percent) | 2.48% | 2.48% | 2.49% |
Variable rate basis | ' | 'three-month LIBOR | ' |
Spread on variable rate (as a percent) | ' | 2.85% | ' |
Balance amount | 15,000,000 | 15,000,000 | 15,000,000 |
Purchase accounting discounts | 4,300,000 | 4,300,000 | 4,400,000 |
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 1.45-2.85% due 2034 to 2035 | Minimum | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Interest rate (as a percent) | 1.45% | 1.45% | ' |
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 1.45-2.85% due 2034 to 2035 | Maximum | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Interest rate (as a percent) | 2.85% | 2.85% | ' |
Securities sold under agreement to repurchase | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Average daily balance | 136,707,000 | 97,156,000 | ' |
Average interest rate (as a percent) | 0.14% | 0.12% | ' |
Maximum month-end balance | 166,925,000 | 166,925,000 | ' |
FHLB short-term advances: | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Average daily balance | 82,935,000 | 40,966,000 | ' |
Average interest rate (as a percent) | 0.19% | 0.80% | ' |
Maximum month-end balance | 70,000,000 | 90,000,000 | ' |
Federal funds purchased | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Average daily balance | 217,000 | 1,568,000 | ' |
Average interest rate (as a percent) | 0.31% | 0.27% | ' |
FHLB overnight repurchase agreements: | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Average daily balance | ' | 2,931,000 | ' |
Average interest rate (as a percent) | 0.00% | 0.10% | ' |
FHLB collateralized advances for fixed rate notes: | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Amount of collateral for total borrowing capacity | 1,700,000,000 | 1,700,000,000 | ' |
Blanket lien arrangement | 1,100,000,000 | 1,100,000,000 | ' |
Specific lien arrangement | 541,500,000 | 541,500,000 | ' |
Securities sold under agreements to repurchase: X.XX% - X.XX% fixed-rate notes due XXXX to XXXX | Mortgage-backed securities | ' | ' | ' |
Short-term borrowings | ' | ' | ' |
Carrying value | 423,100,000 | 423,100,000 | ' |
Holding Company | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Amount, short-term borrowings | ' | ' | 35,000,000 |
Amount, long-term debt | 10,690,000 | 10,690,000 | 10,590,000 |
Holding Company | Line of credit | ' | ' | ' |
Short-term borrowings and long-term debt | ' | ' | ' |
Amount, short-term borrowings | ' | ' | 35,000,000 |
Weighted Average Rate, short-term borrowings (as a percent) | ' | ' | 3.17% |
Variable rate basis | ' | 'one-month LIBOR | ' |
Spread on variable rate (as a percent) | ' | 2.85% | ' |
Short-term borrowings | ' | ' | ' |
Average daily balance | ' | 7,436,000 | ' |
Average interest rate (as a percent) | 0.00% | 0.00% | ' |
Maximum month-end balance | ' | $35,000,000 | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Current income tax expense (benefit) | ' | ' | ' | ' | ' |
Federal | $11,344 | $4,409 | ($4,680) | $3,168 | ' |
State | 32 | 40 | -384 | -614 | ' |
Total current income tax expense (benefit) | 11,376 | 4,449 | -5,064 | 2,554 | ' |
Deferred income tax expense (benefit) | ' | ' | ' | ' | ' |
Federal | -2,215 | -2,390 | 17,313 | 3,153 | ' |
State | 743 | -110 | 1,880 | 935 | ' |
Total deferred income tax expense (benefit) | -1,472 | -2,500 | 19,193 | 4,088 | ' |
Change in valuation allowance | ' | -6,006 | -10,127 | -6,006 | ' |
Income tax provision (benefit) | 9,904 | -4,057 | 4,002 | 636 | ' |
Amount | ' | ' | ' | ' | ' |
Tax based on federal statutory rate | 10,297 | 2,270 | 28,823 | 30,324 | ' |
Effect of: | ' | ' | ' | ' | ' |
Tax exempt income | -521 | -405 | -1,723 | -1,284 | ' |
State taxes, net of federal benefit | 666 | -46 | 1,135 | 208 | ' |
Change in valuation allowance | ' | -6,006 | -10,127 | -6,006 | ' |
Bargain purchase gain | ' | ' | -14,692 | -25,096 | ' |
Transaction costs | ' | ' | 454 | 2,581 | ' |
Other, net | -538 | 130 | 132 | -91 | ' |
Income tax provision (benefit) | 9,904 | -4,057 | 4,002 | 636 | ' |
Rate | ' | ' | ' | ' | ' |
Tax based on federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% | ' |
Effect of: | ' | ' | ' | ' | ' |
Tax exempt income (as a percent) | -1.80% | -6.30% | -2.10% | -1.50% | ' |
State taxes, net of federal benefit (as a percent) | 2.30% | -0.70% | 1.40% | 0.20% | ' |
Change in valuation allowance (as a percent) | ' | -92.60% | -12.30% | -6.90% | ' |
Bargain purchase gain (as a percent) | ' | ' | -17.80% | -29.00% | ' |
Transaction costs (as a percent) | ' | ' | 0.50% | 3.00% | ' |
Other, net (as a percent) | -1.80% | 2.10% | 0.20% | -0.10% | ' |
Income tax expense (benefit) (as a percent) | 33.70% | -62.50% | 4.90% | 0.70% | ' |
Deferred tax assets: | ' | ' | ' | ' | ' |
Allowance for loan losses | 50,512 | ' | 50,512 | ' | 51,527 |
Other real estate losses | 6,797 | ' | 6,797 | ' | 3,702 |
Organizational costs | 282 | ' | 282 | ' | 311 |
Accrued stock-based compensation | 5,764 | ' | 5,764 | ' | 5,926 |
Accrued expenses | 478 | ' | 478 | ' | ' |
Loss and tax credit carry forwards | 32,345 | ' | 32,345 | ' | 19,298 |
Other reserves | 2,076 | ' | 2,076 | ' | 1,988 |
Goodwill and other intangibles | 1,348 | ' | 1,348 | ' | 1,494 |
Nonaccrual interest | 10,389 | ' | 10,389 | ' | 10,150 |
Business combination adjustments | 60,940 | ' | 60,940 | ' | 41,742 |
Net unrealized loss on available for sale securities | ' | ' | ' | ' | 4,306 |
Other | 543 | ' | 543 | ' | ' |
Total deferred tax assets | 171,474 | ' | 171,474 | ' | 140,444 |
Deferred tax liabilities: | ' | ' | ' | ' | ' |
Depreciation | 2,154 | ' | 2,154 | ' | 3,996 |
FHLB stock dividends | 260 | ' | 260 | ' | 1,541 |
Deferred loan fees | 484 | ' | 484 | ' | 1,229 |
Prepaid expenses | ' | ' | ' | ' | 799 |
Net unrealized gain on available for sale securities | 1,124 | ' | 1,124 | ' | ' |
Loan servicing rights | 26,392 | ' | 26,392 | ' | 27,334 |
Other | ' | ' | ' | ' | 247 |
Total deferred tax liabilities | 30,414 | ' | 30,414 | ' | 35,146 |
Net deferred tax asset before valuation allowance | 141,060 | ' | 141,060 | ' | 105,298 |
Valuation allowance | ' | ' | ' | ' | -10,127 |
Net deferred tax asset | $141,060 | ' | $141,060 | ' | $95,171 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Loss carry forwards and tax credits expiring between 2027 and 2032 | Federal | Federal | Federal | Talmer West Bank | Talmer West Bank | Talmer West Bank | First Place Bank | First Place Bank | First Place Bank | First Place Bank | Lakeshore acquisition | ||||
Loss carry forwards and tax credits expiring between 2027 and 2032 | Loss carry forwards expiring between 2027 and 2029 | Federal | Federal | Federal | Federal | ||||||||||
Loss carry forwards expiring in 2032 and 2033 | Loss carry forwards and tax credits expiring between 2027 and 2032 | Loss carry forwards and tax credits expiring between 2027 and 2032 | Loss carry forwards expiring in 2030 | ||||||||||||
INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual limitation on unused portion of federal tax loss carry forwards | ' | ' | ' | ' | $1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets, gross | 171,474,000 | 140,444,000 | ' | ' | ' | ' | ' | ' | 60,400,000 | ' | ' | ' | ' | ' | ' |
Net operating loss carry forwards and built-in losses realization period | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Bad debts deductions period | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carry forwards and built-in losses expected amount to be realized within specified period | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance | ' | 10,127,000 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 10,100,000 | ' | ' | ' |
Gross loss carry forwards | ' | ' | ' | ' | ' | 24,800,000 | 3,700,000 | ' | ' | 28,700,000 | ' | ' | ' | 28,800,000 | 323,000 |
Tax credits carryforwards | ' | ' | ' | 856,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 856,000 | ' |
Alternative minimum tax credits with an indefinite life | ' | ' | ' | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual limitation on use of federal tax loss carry forwards and tax credits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,600,000 | 1,700,000 | ' |
Annual limitation on use of federal tax loss carry forwards | ' | ' | ' | ' | ' | ' | 145,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance on remainder of the Company's net deferred tax assets | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bad debt reserve in equity for which no provision for tax has been recorded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,000,000 | ' | ' | ' | ' |
Provision for federal income taxes for the bad debt reserve established in 1987 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Potential tax amount for the bad debt reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | ' | ' | ' | ' |
Anticipated tax refund related to amended tax return | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,700,000 | ' | ' | ' | ' |
Unrecognized tax benefits | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities accrued for interest or penalties | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stock-based compensation | ' | ' | ' | ' |
Shares of common stock issued or issuable | 9,800,000 | ' | 9,800,000 | ' |
Number of Shares | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | 0 |
Stock Options | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 35,000 | ' |
Option shares available for grant | 1,600,000 | ' | 1,600,000 | ' |
Weighted-average assumptions used in determination of the fair value of options granted | ' | ' | ' | ' |
Fair value of options granted (in dollars per share) | $4.77 | $2.13 | $4.77 | $2.13 |
Expected volatility (as a percent) | ' | ' | 30.02% | 24.37% |
Risk-free interest rate (as a percent) | ' | ' | 1.98% | 0.97% |
Expected life (in years) | ' | ' | '6 years | '6 years |
Number of Shares | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 8,441,000 | ' |
Granted (in shares) | ' | ' | 35,000 | ' |
Exercised (in shares) | ' | ' | -453,000 | ' |
Forfeited or expired (in shares) | ' | ' | -2,000 | ' |
Outstanding at the end of the period (in shares) | 8,021,000 | ' | 8,021,000 | ' |
Options fully vested and expected to vest (in shares) | 8,021,000 | ' | 8,021,000 | ' |
Exercisable at the end of the period (in shares) | 7,950,000 | ' | 7,950,000 | ' |
Weighted Average Exercise Price per Share | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | $6.88 | ' |
Granted (in dollars per share) | ' | ' | $14.44 | ' |
Exercised (in dollars per share) | ' | ' | $5.92 | ' |
Forfeited or expired (in dollars per share) | ' | ' | $7.25 | ' |
Outstanding at the end of the period (in dollars per share) | $6.96 | ' | $6.96 | ' |
Options fully vested and expected to vest (in dollars per share) | $6.96 | ' | $6.96 | ' |
Exercisable at the end of the period (in dollars per share) | $6.96 | ' | $6.96 | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' | ' |
Outstanding at the end of the period (in years) | ' | ' | '6 years 11 months 12 days | ' |
Options fully vested and expected to vest (in years) | ' | ' | '6 years 11 months 12 days | ' |
Exercisable at the end of the period (in years) | ' | ' | '6 years 11 months 12 days | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Outstanding at the end of the period | $55,107,000 | ' | $55,107,000 | ' |
Options fully vested and expected to vest | 55,107,000 | ' | 55,107,000 | ' |
Exercisable at the end of the period | 54,619,000 | ' | 54,619,000 | ' |
Weighted average fair value of options exercised (in dollars per share) | ' | ' | $13.74 | ' |
Number of shares issued under the net-settlement option | ' | ' | 163,000 | ' |
Cash received from exercise of options | ' | ' | 143,000 | ' |
Number of shares issued from from exercise of options | ' | ' | 25,000 | ' |
Additional information | ' | ' | ' | ' |
Total intrinsic value of stock options exercised | ' | ' | 3,500,000 | ' |
Total expense | 42,000 | 245,000 | 429,000 | 9,300,000 |
Total unrecognized compensation cost related to stock options | $32,000 | ' | $32,000 | ' |
Shares | ' | ' | ' | ' |
Nonvested at the beginning of the period (in shares) | ' | ' | 348,000 | ' |
Granted (in shares) | ' | ' | 35,000 | ' |
Vested (in shares) | ' | ' | 310,000 | ' |
Forfeited (in shares) | ' | ' | 2,000 | ' |
Nonvested at the end of the period (in shares) | 71,000 | ' | 71,000 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' |
Nonvested at the beginning of the period (in dollars per share) | ' | ' | $2.24 | ' |
Nonvested at the end of the period (in dollars per share) | $2.21 | ' | $2.21 | ' |
Vesting on grant date | Stock Options | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 35,000 | 3,600,000 |
Expiration period from the grant date | ' | ' | '10 years | '10 years |
Number of Shares | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 35,000 | 3,600,000 |
Shares | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 35,000 | 3,600,000 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (Restricted Stock Awards, USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Employees | Employees | Employees | Directors | Directors | Directors | |||
Salary and employee benefits | Salary and employee benefits | Professional fees | Professional fees | |||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' | ' | '1 year | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | 377,800 | ' | ' | ' | ' | ' | ' |
Nonvested at end of period (in shares) | 377,800 | 377,800 | ' | ' | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | $14.44 | ' | ' | ' | ' | ' | ' |
Nonvested at end of period (in dollars per share) | $14.44 | $14.44 | ' | ' | ' | ' | ' | ' |
Additional information | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation expense | $302,000 | $369,000 | ' | $227,000 | $277,000 | ' | $75,000 | $92,000 |
Awards outstanding (in shares) | 377,800 | 377,800 | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | $5,100,000 | $5,100,000 | ' | ' | ' | ' | ' | ' |
Weighted-average period over which unrecognized compensation cost are expected to be recognized | ' | '4 years 6 months | ' | ' | ' | ' | ' | ' |
REGULATORY_CAPITAL_MATTERS_Det
REGULATORY CAPITAL MATTERS (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 06, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Class A common stock | Talmer Bank and Trust | Talmer Bank and Trust | Talmer Bank and Trust | First Place Bank | Talmer West Bank | Talmer West Bank | |||
Minimum | Minimum | ||||||||
REGULATORY CAPITAL MATTERS | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) ratio prescribed in the Consent Order (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% |
Tier 1 capital (to adjusted total assets) ratio prescribed in the Consent Order (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% |
Total capital to risk-weighted assets | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Amount | $695,380 | $583,370 | ' | $602,480 | $253,044 | ' | $263,297 | $97,123 | ' |
Actual Ratio (as a percent) | 16.80% | 19.20% | ' | 16.70% | 18.40% | ' | 15.90% | 18.50% | ' |
For Capital Adequacy Purposes Amount | 331,998 | 242,885 | ' | 289,526 | 110,123 | ' | 132,207 | 41,930 | ' |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% | ' | 8.00% | 8.00% | ' | 8.00% | 8.00% | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ' | ' | ' | 361,907 | 137,654 | ' | ' | ' | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' |
Tier 1 capital to risk-weighted assets | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Amount | 645,796 | 555,350 | ' | 557,105 | 235,448 | ' | 252,873 | 92,949 | ' |
Actual Ratio (as a percent) | 15.60% | 18.30% | ' | 15.40% | 17.10% | ' | 15.30% | 17.70% | ' |
For Capital Adequacy Purposes Amount | 165,999 | 121,443 | ' | 144,763 | 55,062 | ' | 66,104 | 20,965 | ' |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% | ' | 4.00% | 4.00% | ' | 4.00% | 4.00% | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ' | ' | ' | 217,144 | 82,593 | ' | ' | ' | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | ' | ' | ' | 6.00% | 6.00% | ' | ' | ' | ' |
Tier 1 leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Amount | 645,796 | 555,350 | ' | 557,105 | 235,448 | ' | 252,873 | 92,949 | ' |
Actual Ratio (as a percent) | 11.50% | 12.20% | ' | 11.50% | 10.30% | ' | 11.70% | 11.60% | ' |
For Capital Adequacy Purposes Amount | 225,513 | 182,221 | ' | 193,575 | 91,363 | ' | 86,521 | 32,116 | ' |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% | ' | 4.00% | 4.00% | ' | 4.00% | 4.00% | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ' | ' | ' | $241,969 | $114,204 | ' | ' | ' | ' |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' |
Surplus required for declaration or payment of dividend as a percentage of capital remaining after dividend payment | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' |
Dividend declared (in dollars per share) | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' |
PARENT_COMPANY_FINANCIAL_STATE2
PARENT COMPANY FINANCIAL STATEMENTS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $298,666 | $375,356 | $492,993 | $362,771 |
Income tax benefit | 181,318 | 126,200 | ' | ' |
Other assets | 35,810 | 26,402 | ' | ' |
Total assets | 5,744,170 | 4,547,361 | ' | ' |
Liabilities | ' | ' | ' | ' |
Short-term borrowings | 150,573 | 71,876 | ' | ' |
Long-term debt | 285,009 | 199,037 | ' | ' |
Total liabilities | 4,997,518 | 3,930,346 | ' | ' |
Shareholders' equity | 746,652 | 617,015 | 606,831 | 520,743 |
Total liabilities and shareholders' equity | 5,744,170 | 4,547,361 | ' | ' |
Holding Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 11,414 | 98,411 | 44,521 | 211,849 |
Investment in banking subsidiaries | 741,496 | 562,381 | ' | ' |
Income tax benefit | 5,393 | 5,404 | ' | ' |
Other assets | 1,232 | 1,783 | ' | ' |
Total assets | 759,535 | 667,979 | ' | ' |
Liabilities | ' | ' | ' | ' |
Short-term borrowings | ' | 35,000 | ' | ' |
Long-term debt | 10,690 | 10,590 | ' | ' |
Accrued expenses and other liabilities | 2,193 | 5,374 | ' | ' |
Total liabilities | 12,883 | 50,964 | ' | ' |
Shareholders' equity | 746,652 | 617,015 | ' | ' |
Total liabilities and shareholders' equity | $759,535 | $667,979 | ' | ' |
PARENT_COMPANY_FINANCIAL_STATE3
PARENT COMPANY FINANCIAL STATEMENTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income | ' | ' | ' | ' |
Bargain purchase gain | ' | ' | $41,977 | $71,702 |
Other noninterest income | 4,928 | 2,930 | 14,518 | 8,597 |
Expenses | ' | ' | ' | ' |
Salaries and employee benefits | 29,752 | 29,766 | 95,872 | 116,772 |
Professional services | 2,985 | 4,418 | 9,825 | 12,666 |
Marketing expense | 1,005 | 634 | 3,703 | 2,825 |
Interest on short-term borrowings | 122 | 26 | 330 | 81 |
Interest on long-term debt | 701 | 775 | 1,902 | 2,313 |
Other | 5,353 | 5,303 | 20,491 | 17,865 |
Income tax benefit | -9,904 | 4,057 | -4,002 | -636 |
Net income | 19,515 | 10,544 | 78,348 | 86,005 |
Total comprehensive income, net of tax | 19,369 | 10,737 | 88,431 | 76,722 |
Talmer Bancorp, Inc. | ' | ' | ' | ' |
Income | ' | ' | ' | ' |
Dividend income from subsidiary | ' | ' | 25,000 | 55,000 |
Bargain purchase gain | ' | ' | 41,977 | 71,702 |
Other noninterest income | 3 | 3 | 8 | 10 |
Total income | 3 | 3 | 66,985 | 126,712 |
Expenses | ' | ' | ' | ' |
Salaries and employee benefits | 1,040 | 73 | 6,995 | 18,433 |
Bank acquisition and due diligence fees | 238 | 111 | 2,212 | 7,702 |
Professional services | 455 | 241 | 1,541 | 1,175 |
Marketing expense | 31 | 3 | 222 | 1,027 |
Interest on long-term debt | 128 | 128 | 380 | 424 |
Other | 250 | 105 | 765 | 343 |
Total expenses | 2,142 | 661 | 12,266 | 29,104 |
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries | -2,139 | -658 | 54,719 | 97,608 |
Income tax benefit | 533 | 202 | 2,990 | 7,570 |
Equity in (over)/under distributed earnings of subsidiaries | 21,121 | 11,000 | 20,639 | -19,173 |
Net income | 19,515 | 10,544 | 78,348 | 86,005 |
Total comprehensive income, net of tax | $19,515 | $10,544 | $78,348 | $86,005 |
PARENT_COMPANY_FINANCIAL_STATE4
PARENT COMPANY FINANCIAL STATEMENTS (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | $19,515 | $10,544 | $78,348 | $86,005 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Gain on acquisition | ' | ' | -41,977 | -71,702 |
Stock-based compensation expense | ' | ' | 798 | 9,335 |
Decrease in other assets, net | ' | ' | -15,980 | 6,667 |
Increase (decrease) in accrued expenses and other liabilities, net | ' | ' | 13,222 | 2,992 |
Net cash from (used in) operating activities | ' | ' | 7,955 | 126,100 |
Cash flows from investing activities | ' | ' | ' | ' |
Net cash from (used in) investing activities | ' | ' | -720,098 | 177,796 |
Cash flows from financing activities | ' | ' | ' | ' |
Issuance of common stock | ' | ' | 41,112 | ' |
Cash dividends declared on common stock ($0.01 per share) | ' | ' | -704 | ' |
Net cash from (used in) financing activities | ' | ' | 635,453 | -173,674 |
Net change in cash and cash equivalents | ' | ' | -76,690 | 130,222 |
Beginning cash and cash equivalents | ' | ' | 375,356 | 362,771 |
Ending cash and cash equivalents | 298,666 | 492,993 | 298,666 | 492,993 |
Cash dividends declared on common stock (in dollars per share) | ' | ' | $0.01 | ' |
Talmer Bancorp, Inc. | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net income | 19,515 | 10,544 | 78,348 | 86,005 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Equity in (over)/under distributed earnings of subsidiaries | -21,121 | -11,000 | -45,639 | -35,827 |
Gain on acquisition | ' | ' | -41,977 | -71,702 |
Stock-based compensation expense | ' | ' | 382 | 8,314 |
Decrease in income tax benefit | ' | ' | 11 | 2,331 |
Decrease in other assets, net | ' | ' | 551 | 9,934 |
Increase (decrease) in accrued expenses and other liabilities, net | ' | ' | -3,081 | 2,617 |
Net cash from (used in) operating activities | ' | ' | -11,405 | 1,672 |
Cash flows from investing activities | ' | ' | ' | ' |
Cash (used in) proceeds from acquisitions | ' | ' | -6,500 | -45,000 |
Capital contributions to subsidiaries | ' | ' | -99,500 | -179,000 |
Dividends received from subsidiaries | ' | ' | 25,000 | 55,000 |
Net cash from (used in) investing activities | ' | ' | -81,000 | -169,000 |
Cash flows from financing activities | ' | ' | ' | ' |
Issuance of common stock | ' | ' | 41,112 | ' |
Repayment of senior unsecured line of credit | ' | ' | -35,000 | ' |
Cash dividends declared on common stock ($0.01 per share) | ' | ' | -704 | ' |
Net cash from (used in) financing activities | ' | ' | 5,408 | ' |
Net change in cash and cash equivalents | ' | ' | -86,997 | -167,328 |
Beginning cash and cash equivalents | ' | ' | 98,411 | 211,849 |
Ending cash and cash equivalents | $11,414 | $44,521 | $11,414 | $44,521 |
Cash dividends declared on common stock (in dollars per share) | ' | ' | $0.01 | ' |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator for basic and diluted EPS: | ' | ' | ' | ' |
Net income | $19,515 | $10,544 | $78,348 | $86,005 |
Net income allocated to participating securities | 105 | ' | 178 | ' |
Net income allocated to common shareholders | $19,410 | $10,544 | $78,170 | $86,005 |
Weighted average common shares - issued | 70,470 | 66,229 | 69,570 | 66,229 |
Average unvested restricted share awards | -378 | ' | -156 | ' |
Weighted average common shares outstanding - basic | 70,092 | 66,229 | 69,414 | 66,229 |
Effect of dilutive securities - | ' | ' | ' | ' |
Employee and director stock options (in shares) | 4,102 | 2,637 | 4,034 | 2,576 |
Warrants (in shares) | 1,558 | 987 | 1,500 | 987 |
Weighted average common shares outstanding - diluted | 75,752 | 69,853 | 74,948 | 69,792 |
Basic (in dollars per share) | $0.28 | $0.16 | $1.13 | $1.30 |
Diluted (in dollars per share) | $0.26 | $0.15 | $1.04 | $1.23 |
Other information on EPS | ' | ' | ' | ' |
Average stock valuation (in dollars per share) | $14.08 | $10 | $13.52 | $10 |
Options | ' | ' | ' | ' |
Antidilutive average shares related to outstanding options and warrants | ' | ' | ' | ' |
Shares not included in the computation of diluted net income available to common shareholders | 35 | 75 | 14 | 29 |
Range of exercise prices, lower range limit (in dollars per share) | $14.44 | $10 | $14.44 | $10 |
Range of exercise prices, upper range limit (in dollars per share) | $14.44 | $10 | $14.44 | $10 |
Warrants | ' | ' | ' | ' |
Antidilutive average shares related to outstanding options and warrants | ' | ' | ' | ' |
Shares not included in the computation of diluted net income available to common shareholders | ' | 39 | ' | 39 |
Warrants | Minimum | ' | ' | ' | ' |
Antidilutive average shares related to outstanding options and warrants | ' | ' | ' | ' |
Range of exercise prices (in dollars per share) | ' | $10 | ' | $10 |
Warrants | Maximum | ' | ' | ' | ' |
Antidilutive average shares related to outstanding options and warrants | ' | ' | ' | ' |
Range of exercise prices (in dollars per share) | ' | $10 | ' | $10 |