Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 10, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | TALMER BANCORP, INC. | |
Entity Central Index Key | 1,360,683 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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 | 66,125,198 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and due from banks | $ 82,822 | $ 86,185 | |
Interest-bearing deposits with other banks | 106,740 | 96,551 | |
Federal funds sold and other short-term investments | 140,000 | 71,000 | |
Total cash and cash equivalents | 329,562 | 253,736 | |
Securities available-for-sale | 880,705 | 740,819 | |
Federal Home Loan Bank stock | 25,416 | 20,212 | |
Loans held for sale, at fair value | 100,255 | 93,453 | |
Loans: | |||
Total loans, excluding covered loans | 4,514,959 | 3,902,637 | |
Less: Allowance for loan losses - uncovered | (45,080) | (33,819) | |
Net loans - excluding covered loans | 4,469,879 | 3,868,818 | |
Covered loans | 186,629 | 346,490 | |
Less: Allowance for loan losses - covered | (10,757) | (21,353) | |
Net loans - covered | 175,872 | 325,137 | |
Net total loans | 4,645,751 | 4,193,955 | |
Premises and equipment | 44,133 | 48,389 | |
FDIC indemnification asset | 30,551 | 67,026 | |
Other real estate owned and repossessed assets | 33,553 | 48,743 | |
Loan servicing rights | 55,786 | 70,598 | |
Core deposit intangible | 13,470 | 13,035 | |
Goodwill | 3,524 | 0 | |
FDIC receivable | 2,618 | 6,062 | |
Company-owned life insurance | 105,975 | 97,782 | |
Income tax benefit | 180,719 | 177,472 | |
Other assets | 52,017 | 40,982 | |
Total assets | 6,504,035 | 5,872,264 | |
Deposits: | |||
Noninterest-bearing demand deposits | 1,050,375 | 887,567 | |
Interest-bearing demand deposits | 813,609 | 660,697 | |
Money market and savings deposits | 1,314,798 | 1,170,236 | |
Time deposits | 1,611,315 | 1,188,178 | |
Other brokered funds | 335,354 | 642,185 | |
Total deposits | 5,125,451 | 4,548,863 | |
FDIC clawback liability | 27,269 | 26,905 | |
FDIC warrants payable | 4,513 | 4,633 | |
Short-term borrowings | 102,090 | 135,743 | |
Long-term debt | 484,981 | 353,972 | |
Other liabilities | 44,963 | 40,541 | |
Total liabilities | 5,789,267 | 5,110,657 | |
Shareholders’ equity | |||
Preferred stock - $1.00 par value Authorized - 20,000,000 shares at 9/30/2015 and 12/31/2014 Issued and outstanding - 0 shares at 9/30/2015 and 12/31/2014 | 0 | 0 | |
Common stock: | |||
Additional paid-in-capital | 316,160 | 405,436 | |
Retained earnings | 326,678 | 281,789 | |
Accumulated other comprehensive income, net of tax | 5,802 | 3,850 | |
Total shareholders' equity | 714,768 | 761,607 | |
Total liabilities and shareholders’ equity | 6,504,035 | 5,872,264 | |
Class A Voting Common Stock | |||
Common stock: | |||
Common Stock | 66,128 | 70,532 | |
Class B Non-Voting Common Stock | |||
Common stock: | |||
Common Stock | 0 | 0 | |
Residential real estate | |||
Loans: | |||
Total loans, excluding covered loans | [1] | 1,452,290 | 1,426,012 |
Commercial real estate | |||
Loans: | |||
Total loans, excluding covered loans | 1,484,421 | 1,310,938 | |
Commercial and industrial | |||
Loans: | |||
Total loans, excluding covered loans | 1,196,717 | 869,477 | |
Real estate construction | |||
Loans: | |||
Total loans, excluding covered loans | [1] | 217,035 | 131,686 |
Consumer | |||
Loans: | |||
Total loans, excluding covered loans | $ 164,496 | $ 164,524 | |
[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 ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
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) | $ 20.9 | $ 18.3 |
Real estate construction | ||
Total loans, excluding covered loans, measured at fair value (in dollars) | $ 0 | $ 1.2 |
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 | 66,127,598 | 70,532,122 |
Common stock, outstanding shares | 66,127,598 | 70,532,122 |
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 Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Interest income | ||||||
Interest and fees on loans | $ 60,078 | $ 58,128 | $ 178,335 | $ 168,403 | ||
Interest on investments | ||||||
Taxable | 2,731 | 2,241 | 7,429 | 6,246 | ||
Tax-exempt | 1,873 | 1,444 | 5,146 | 4,622 | ||
Total interest on securities | 4,604 | 3,685 | 12,575 | 10,868 | ||
Interest on interest-earning cash balances | 107 | 159 | 310 | 546 | ||
Interest on federal funds and other short-term investments | 342 | 130 | 776 | 401 | ||
Dividends on FHLB stock | 285 | 177 | 754 | 690 | ||
FDIC indemnification asset | (4,366) | (6,663) | (22,164) | (18,887) | ||
Total interest income | 61,050 | 55,616 | 170,586 | 162,021 | ||
Interest Expense | ||||||
Interest-bearing demand deposits | 401 | 190 | 1,073 | 630 | ||
Money market and savings deposits | 620 | 487 | 1,653 | 1,473 | ||
Time deposits | 2,582 | 1,611 | 6,540 | 4,534 | ||
Other brokered funds | 541 | 288 | 1,771 | 352 | ||
Interest on short-term borrowings | 350 | 122 | 638 | 330 | ||
Interest on long-term debt | 909 | 701 | 2,623 | 1,902 | ||
Total interest expense | 5,403 | 3,399 | 14,298 | 9,221 | ||
Net interest income | 55,647 | 52,217 | 156,288 | 152,800 | ||
Provision for loan losses - uncovered | 3,666 | 7,784 | 8,147 | 17,427 | ||
Benefit for loan losses - covered | (2,966) | (6,275) | (12,767) | (16,094) | ||
Net interest income after provision for loan losses | 54,947 | 50,708 | 160,908 | 151,467 | ||
Noninterest income | ||||||
Deposit fee income | 2,494 | 3,047 | 7,375 | 9,533 | ||
Mortgage banking and other loan fees | (1,721) | 2,065 | 1,716 | 2,028 | ||
Net gain on sales of loans | 6,815 | 4,083 | 24,181 | 12,808 | ||
Net gain on sales of branches | 0 | 14,410 | 0 | 14,410 | ||
Bargain purchase gain | 0 | 0 | 0 | 41,977 | ||
FDIC loss sharing income | (2,696) | (2,420) | (9,692) | (5,967) | ||
Accelerated discount on acquired loans | 9,491 | 3,663 | 25,133 | 14,455 | ||
Net gain (loss) on sales of securities | 202 | 244 | 101 | (2,066) | ||
Company-owned life insurance | 740 | 806 | 2,336 | 1,886 | ||
Other income | 4,017 | 4,076 | 11,720 | 12,601 | ||
Total noninterest income | 19,342 | 29,974 | 62,870 | 101,665 | ||
Noninterest expense | ||||||
Salary and employee benefits | 27,665 | 29,795 | 85,562 | 96,112 | ||
Occupancy and equipment expense | 6,472 | 7,981 | 22,553 | 24,895 | ||
Data processing fees | 1,356 | 1,610 | 5,015 | 5,610 | ||
Professional service fees | 3,197 | 2,964 | 10,015 | 9,629 | ||
FDIC loss sharing expense | 292 | 245 | 1,374 | 1,752 | ||
Bank acquisition and due diligence fees | 113 | 239 | 1,944 | 3,436 | ||
Marketing expense | 1,748 | 1,001 | 4,326 | 3,697 | ||
Other employee expense | 722 | 621 | 2,482 | 2,016 | ||
Insurance expense | 1,305 | 1,383 | 4,362 | 4,082 | ||
Other expense | 4,959 | 5,424 | 20,084 | 19,553 | ||
Total noninterest expense | 47,829 | 51,263 | 157,717 | 170,782 | ||
Income before income taxes | 26,460 | 29,419 | 66,061 | 82,350 | ||
Income tax provision | 6,425 | 9,904 | 19,045 | 4,002 | ||
Net income | $ 20,035 | $ 19,515 | $ 47,016 | $ 78,348 | ||
Earnings per common share: | ||||||
Basic (in dollars per share) | $ 0.29 | $ 0.28 | $ 0.67 | $ 1.13 | ||
Diluted (in dollars per share) | $ 0.27 | $ 0.26 | $ 0.63 | $ 1.04 | ||
Average common shares outstanding - basic (in shares) | 68,731 | 70,092 | 69,744 | 69,414 | ||
Average common shares outstanding - diluted (in shares) | 73,222 | 75,752 | 74,447 | 74,948 | ||
Cash dividends declared on common stock | $ 711 | $ 704 | $ 2,127 | [1] | $ 704 | [1] |
Cash dividends declared per common share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.01 | ||
[1] | The Company declared common stock dividends of $0.01 in each of the first, second and third quarters of 2015 and in the third quarter of 2014. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 20,035 | $ 19,515 | $ 47,016 | $ 78,348 |
Other comprehensive income: | ||||
Unrealized holding gains on securities available-for-sale arising during the period | 6,477 | 20 | 3,469 | 13,447 |
Reclassification adjustment for (gains) losses on realized income | (202) | (244) | (101) | 2,066 |
Tax effect | (2,196) | 78 | (1,179) | (5,430) |
Net unrealized gains (losses) on securities available-for-sale, net of tax | 4,079 | (146) | 2,189 | 10,083 |
Unrealized losses on interest rate swaps designated as cash flow hedges | (893) | 0 | (660) | 0 |
Reclassification adjustment for losses included in net income | 104 | 0 | 296 | 0 |
Tax effect | 276 | 0 | 127 | 0 |
Net unrealized losses on interest rate swaps designated as cash flow hedges, net of tax | (513) | 0 | (237) | 0 |
Other comprehensive income (loss), net of tax | 3,566 | (146) | 1,952 | 10,083 |
Total comprehensive income, net of tax | $ 23,601 | $ 19,369 | $ 48,968 | $ 88,431 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |
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 | 10,083 | 10,083 | ||||
Stock-based compensation expense | 798 | 798 | ||||
Restricted stock awards, including tax benefit | 0 | $ 378 | (378) | |||
Restricted stock awards (in shares) | 378 | |||||
Issuance of common shares, including tax benefit | 41,112 | $ 3,892 | 37,220 | |||
Issuance of common shares (in shares) | 3,892 | |||||
Cash dividends paid on common stock | [1] | (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 | |||||
Balance at Dec. 31, 2014 | 761,607 | $ 70,532 | 405,436 | 281,789 | 3,850 | |
Balance (in shares) at Dec. 31, 2014 | 70,532 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 47,016 | 47,016 | ||||
Other comprehensive income | 1,952 | 1,952 | ||||
Stock-based compensation expense | 1,381 | 1,381 | ||||
Restricted stock awards, including tax benefit | 16 | $ 380 | (364) | |||
Restricted stock awards (in shares) | 380 | |||||
Issuance of common shares, including tax benefit | (198) | $ 293 | (491) | |||
Issuance of common shares (in shares) | 293 | |||||
Repurchase of warrants to purchase 2.5 million shares, at fair value | (19,892) | (19,892) | ||||
Repurchase of 5.1 million shares | (74,987) | $ (5,077) | (69,910) | |||
Repurchase of 5.0 million shares, at fair value (in shares) | (5,077) | |||||
Cash dividends paid on common stock | [1] | (2,127) | (2,127) | |||
Balance at Sep. 30, 2015 | $ 714,768 | $ 66,128 | $ 316,160 | $ 326,678 | $ 5,802 | |
Balance (in shares) at Sep. 30, 2015 | 66,128 | |||||
[1] | The Company declared common stock dividends of $0.01 in each of the first, second and third quarters of 2015 and in the third quarter of 2014. |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||||
Number of shares repurchased | 2,500 | ||||
Dividend paid (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.01 |
Common Stock | |||||
Repurchase of 5.0 million shares, at fair value (in shares) | (5,077) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 47,016 | $ 78,348 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,476 | 4,831 |
Amortization of core deposit intangibles | 1,975 | 2,140 |
Stock-based compensation expense | 1,381 | 798 |
Provision (benefit) for loan losses | (4,620) | 1,333 |
Originations of loans held for sale | (919,662) | (760,802) |
Proceeds from sales of loans | 932,444 | 692,572 |
Net gain from sales of loans | (24,181) | (12,808) |
Net gain from sale of branches | 0 | (14,410) |
Net (gain) loss on sales of securities | (101) | 2,066 |
Gain on acquisition | 0 | (41,977) |
Valuation allowance and writedowns on other real estate and other repossessed assets | 7,283 | 4,466 |
Valuation change in Company-owned life insurance | (3,474) | (1,886) |
Valuation change in loan servicing rights | 10,717 | 11,036 |
Additions to loan servicing rights | (8,607) | (6,046) |
Net decrease in FDIC indemnification asset and receivable other than payments received | 36,211 | 37,969 |
Net gain on sales of other real estate owned and repossessed assets | (5,731) | (6,652) |
Net increase in accrued interest receivable and other assets | (18,486) | (15,915) |
Net increase in accrued expenses and other liabilities | 418 | 12,532 |
Net securities premium amortization | 5,570 | 3,846 |
Deferred income tax benefit | 6,810 | 19,193 |
Change in valuation allowance of deferred income tax asset | 2,804 | (10,127) |
Other, net | 1,059 | 1,188 |
Net cash from operating activities | 74,302 | 1,695 |
Cash flows from investing activities | ||
Net increase in uncovered loans | (389,055) | (561,980) |
Net decrease in covered loans | 66,319 | 105,748 |
Purchases of loans | (30,793) | (53,556) |
Purchases of FHLB stock | (6,717) | (6,300) |
Purchases of securities available-for-sale | (267,175) | (257,534) |
Purchases of Company-owned life insurance | 0 | (55,219) |
Purchases of premises and equipment | (3,564) | (10,502) |
Payments received from FDIC under loss sharing agreements | 3,708 | 6,361 |
Proceeds from: | ||
Maturities and redemptions of securities available-for-sale | 106,160 | 83,852 |
Redemption of FHLB Stock | 2,387 | 11,110 |
Sale of securities available-for-sale | 53,050 | 82,496 |
Sale of loan servicing rights | 12,702 | 0 |
Sale of loans | 49,839 | 73,437 |
Sale of other real estate owned and repossessed assets | 39,011 | 37,249 |
Sale of premises and equipment | 2,625 | 10,673 |
Sale of deposits | 0 | (389,476) |
Net cash provided from acquisition | 810 | 209,831 |
Net cash used in investing activities | (360,693) | (713,810) |
Cash flows from financing activities | ||
Net increase in deposits | 375,135 | 430,366 |
Draw on senior unsecured line of credit | 30,000 | 0 |
Repayment of senior unsecured line of credit | 0 | (35,000) |
Net increase in (repayment of) other short-term borrowings | (63,653) | 113,679 |
Issuances of long-term FHLB advances | 300,000 | 110,000 |
Repayments of long-term FHLB advances | (177,466) | (22,902) |
Repayments on long-term sweep repurchase agreements | (1,232) | (1,226) |
Repayments of subordinated debt | (3,500) | 0 |
Other changes in long-term debt | 121 | 100 |
Repurchase of 5.1 million common shares | (74,987) | 0 |
Repurchase of warrants to purchase 2.5 million shares, at fair value | (19,892) | 0 |
Issuance of common stock and restricted stock awards, including tax benefit | (182) | 41,112 |
Cash dividends paid on common stock ($0.03 and $0.01 per share, respectively) | (2,127) | (704) |
Net cash from financing activities | 362,217 | 635,425 |
Net increase (decrease) in cash and cash equivalents | 75,826 | (76,690) |
Beginning cash and cash equivalents | 253,736 | 375,356 |
Ending cash and cash equivalents | 329,562 | 298,666 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 12,772 | 9,450 |
Income taxes paid | 16,745 | 5,808 |
Transfer from mortgage loans to other real estate owned and repossessed assets | 23,512 | 18,560 |
Net transfer of loans held for sale to loans held for investment | (3,983) | 21,266 |
Transfer from premises and equipment to other real estate owned | 889 | 675 |
Transfer from covered to uncovered loans, in connection with the expiration of the first of our four non-single family FDIC loss share agreements | 77,022 | 0 |
Increase in assets and liabilities of acquisitions: | ||
Securities | 34,022 | 13,619 |
FHLB stock | 874 | 5,933 |
Uncovered loans | 162,265 | 571,666 |
Premises and equipment | 2,077 | 6,540 |
Loan servicing rights | 0 | 767 |
Company-owned life insurance | 4,719 | 0 |
Other real estate owned and repossessed assets | 1,260 | 30,878 |
Core deposit intangible | 2,410 | 3,633 |
Other assets | 6,462 | 62,542 |
Deposits | 201,453 | 857,769 |
Short-term borrowings | 0 | 18 |
Long-term debt | 13,086 | 0 |
Other liabilities | $ 3,884 | $ 5,645 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Sep. 30, 2015contract$ / sharesshares | Sep. 30, 2014$ / shares | |
Number of shares repurchased | 2,500 | ||||
Cash dividends declared on common stock (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.01 |
Number of FDIC loss share agreements (in contracts) | contract | 4 | ||||
Common Stock | |||||
Stock Repurchased and Retired During Period, Shares | (5,077) |
BASIS OF PRESENTATION AND RECEN
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | 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, 2014 . On February 6, 2015, the Company acquired First of Huron Corp. which resulted in the recognition of goodwill on the Consolidated Balance Sheets. For further information, refer to Note 2, “Business Combinations”. Goodwill is initially recorded as the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is required to be tested annually for impairment or whenever events occur that may indicate that the recoverability of the carrying amount is not probable. In the event of impairment, the amount by which the carrying amount exceeds the fair value is charged to earnings. On February 17, 2015, the Company repurchased an aggregate of 2,529,416 warrants to purchase shares of Class A common stock including 1,623,162 of warrants issued on April 30, 2010, 109,122 of warrants issued on February 21, 2012 and 797,132 of warrants issued on December 27, 2012. The purchase price was based upon the fair value of the warrants on February 17, 2015, determined utilizing the closing price of our stock on the date of repurchase, and resulted in an aggregate purchase price of $19.9 million. On August 21, 2015, Talmer West Bank was merged with and into Talmer Bank and Trust. On August 31, 2015, the Company repurchased 5,077,000 shares of our Class A common stock in an underwritten public offering by which funds affiliated with WL Ross & Co. LLC ("WL Ross Funds") agreed to sell 9,664,579 shares of their Talmer Class A common stock. The WL Ross Funds received all of the net proceeds from the offering. The purchase price in the offering was $14.77 per share, for an aggregate purchase price of $75.0 million . The shares were immediately retired following the purchase. Recently Adopted and Issued Accounting Standards : The following provides a description of recently adopted or newly issued not yet effective accounting standards that had or could have a material effect on our financial statements. 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. In August of 2015, the FASB issued ASU 2015-14, " Deferral of the Effective Date" ("ASU 2015-14"), which provides a one year deferral to the effective date, therefore, ASU 2014-09 is effective for public companies for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. As such, the Company will adopt ASU 2014-09 as of January 1, 2018. 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. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The Company has determined that the acquisitions of First of Huron Corp. (“FHC”), and its subsidiary bank, Signature Bank, and Talmer West Bank (formerly known as Michigan Commerce Bank) constitute business combinations as defined by 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 February 6, 2015, the Company acquired FHC for aggregate cash consideration of $13.4 million. In connection with the merger, FHC merged with Talmer Bancorp, Inc., with Talmer Bancorp, Inc. as the surviving company in the merger. Immediately following the merger, Signature Bank, a Michigan state-chartered bank and wholly owned subsidiary of FHC, merged with and into Talmer Bank and Trust, with Talmer Bank and Trust as the surviving bank. The Company assumed $3.5 million in subordinated notes issued to FHC and $1.4 million of related interest. The subordinated debt was immediately retired and the interest was paid in full in accordance with the provision of the purchase agreement. The Company also received FHC’s common securities issued by trust preferred issuers and assumed $876 thousand of outstanding interest. The outstanding interest on the trust preferred securities was immediately paid off in accordance with the provisions of the purchase agreement. The Company received certain tax assets and all cash and cash equivalents held by FHC. The Company incurred $ 1 thousand and $1.2 million of acquisition related expenses during the three and nine months ended September 30, 2015 , related to the acquisition of FHC, included within “Bank acquisition and due diligence fees” in the Consolidated Statements of Income. All of the branches acquired fit squarely within the Company’s target market areas. The acquisition resulted in a recorded $4.8 million in net deferred tax assets at acquisition. Upon acquisition, FHC incurred an ownership change within the meaning of Section 382 of the Internal Revenue Code, but the acquisition did not result in built-in losses within the meaning of Section 382. At February 6, 2015, FHC had an estimated $1.7 million in gross federal net operating loss carry forwards expiring in 2030, 2032 and 2033 and $303 thousand in federal alternative minimum tax credits with an indefinite life. As a result of the ownership change, the Company’s ability to benefit from the use of FHC’s pre-ownership change net operating loss and tax credit carry forwards will be limited to approximately $366 thousand per year. No valuation allowance was established against the deferred tax assets associated with FHC’s pre-change net operating losses and tax credit carry forwards based on management’s estimate that none of the amounts will expire unused. The assets and liabilities associated with the acquisition of FHC 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; (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 goodwill caused by the net effect of these adjustments. (Dollars in thousands) Consideration paid: Cash $ 13,395 Fair value of identifiable assets acquired: Cash and cash equivalents 14,205 Investment securities 34,022 Federal Home Loan Bank stock 874 Loans 162,265 Premises and equipment 2,077 Company-owned life insurance 4,719 Other real estate owned and repossessed assets 1,260 Core deposit intangible 2,410 Other assets 6,462 Total identifiable assets acquired 228,294 Fair value of liabilities assumed: Deposits 201,453 Long-term debt 13,086 Other liabilities 3,884 Total liabilities assumed 218,423 Fair value of net identifiable assets acquired 9,871 Goodwill recognized in the acquisition $ 3,524 The FHC acquisition resulted in recognition of $3.5 million of goodwill which is the excess of the consideration paid over the fair value of net assets acquired, and is the result of expected operational synergies and other factors. Loans acquired in the FHC 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 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. The core deposit intangible is being amortized on an accelerated basis over the estimated life, currently expected to be 10 years from the date of acquisition. 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 $ 53,807 Contractual cash flows not expected to be collected (nonaccretable difference) 8,084 Expected cash flows 45,723 Interest component of expected cash flows (accretable yield) 5,268 Fair value at acquisition $ 40,455 Excluded from ASC 310-30 accounting: Unpaid principal balance $ 124,538 Fair value discount (2,728 ) Fair value at acquisition 121,810 Total fair value at acquisition $ 162,265 FHC’s results of operations have been included in the Company’s financial results since the February 6, 2015 acquisition date. The acquisition was not considered material to the Company’s financial statements; therefore pro forma financial data and related disclosures are not included. 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. Following the acquisition, the Company contributed $99.5 million of additional capital 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. Talmer West Bank was consolidated with and into Talmer Bank and Trust on August 21, 2015. The Company incurred $35 thousand and $673 thousand of acquisition and integration expenses related to Talmer West Bank during the three and nine months ended September 30, 2015 , respectively. For the three months ended September 30, 2014, the Company did not incur any acquisition and integration expenses related to Talmer West Bank while $ 1.8 million of expenses were incurred during the nine months ended September 30, 2014 . These expenses are 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 as presented in the following table. (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 6,540 Loan servicing rights 767 Other real estate owned 30,878 Core deposit intangible 3,633 Other assets 62,542 Total identifiable assets acquired 911,909 Fair value of liabilities assumed: Deposits 857,769 Other liabilities 5,663 Total liabilities assumed 863,432 Fair value of net identifiable assets acquired 48,477 Bargain purchase gain resulting from acquisition $ 41,977 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. 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. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The fair value framework as detailed by FASB ASC Topic 820, “Fair Value Measurement” requires the categorization of assets and liabilities recorded at fair value into a three-level hierarchy based on the markets in which the assets and liabilities 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 U.S. 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 U.S. 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 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 assets and liabilities recorded at fair value, the description includes the level of the fair value hierarchy in which the assets or 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. Investment securities: 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 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, 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 a trust preferred security (included within “Corporate debt securities”) and an obligation of a political subdivision as of September 30, 2015 , represent securities in less liquid markets requiring significant management assumptions when determining fair value. As of December 31, 2014, securities classified as Level 3 also included a privately issued subordinated corporate debt security (included within “Corporate debt securities”). The fair values of these investment securities represent less than one percent of the total available-for-sale securities. The fair value of the trust preferred security is 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 has been determined to be equal to the carrying cost since the securities were acquired. The issuers have continued to pay their obligations without fail and the Company has not received any information to question future payments. Since the purchase of these securities, no credit related concerns have come to the Company’s attention, therefore no adjustment for credit loss assumptions were made. Investment securities classified as held-to-maturity are carried at amortized cost. Due to limited liquidity of these securities, held-to-maturity securities are classified as Level 3. The fair value of the held-to-maturity security is determined to be equal to the carrying value. No credit related concerns have come to the Company’s attention; therefore, no 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 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. Methods used to estimate loan fair values do not necessarily represent exit price. 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 both September 30, 2015 and December 31, 2014 were recorded at fair value based on a recent appraisal through a valuation allowance. The Company classifies impaired premises and equipment as nonrecurring Level 3. 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 and repossessed assets : Other real estate owned and repossessed assets 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 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, the income approach and existing offers. 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 based on accounting election. 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 interest rate lock commitments and forward contracts related to mortgage loans to be delivered for sale as recurring Level 2. Derivative instruments held or issued for risk management or 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 both September 30, 2015 and December 31, 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 risk management interest rate swaps designated as cash flow hedges and customer-initiated derivatives 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 Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 99,100 $ — $ 99,100 $ — Obligations of state and political subdivisions: Taxable 318 — — 318 Tax-exempt 277,731 — 277,731 — Small Business Administration (“SBA”) Pools 30,413 — 30,413 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 307,355 — 307,355 — Privately issued 58,197 — 58,197 — Privately issued commercial mortgage-backed securities 19,142 — 19,142 — Corporate debt securities 88,449 — 88,019 430 Total securities available-for-sale 880,705 — 879,957 748 Loans measured at fair value: Residential real estate 20,897 — — 20,897 Loans held for sale 100,255 — 100,255 — Loan servicing rights 55,786 — — 55,786 Derivative assets: Interest rate lock commitments 2,740 — 2,740 — Customer-initiated derivatives 5,650 — 5,650 — Total derivatives 8,390 — 8,390 — Total assets at fair value $ 1,066,033 $ — $ 988,602 $ 77,431 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 1,082 — 1,082 — Customer-initiated derivatives 5,684 — 5,684 — Risk management derivatives 586 — 586 — Total derivatives 7,352 — 7,352 — Total liabilities at fair value $ 7,352 $ — $ 7,352 $ — December 31, 2014 Securities available-for-sale: U.S. government sponsored agency obligations $ 98,358 $ — $ 98,358 $ — Obligations of state and political subdivisions: Taxable 397 — — 397 Tax-exempt 232,259 — 232,259 — SBA Pools 33,933 — 33,933 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 291,759 — 291,759 — Privately issued 18,800 — 18,800 — Privately issued commercial mortgage-backed securities 5,130 — 5,130 — Corporate debt securities 60,183 — 56,758 3,425 Total securities available-for-sale 740,819 — 736,997 3,822 Loans measured at fair value: Residential real estate 18,311 — — 18,311 Real estate construction 1,215 — — 1,215 Loans held for sale 93,453 — 93,453 — Loan servicing rights 70,598 — — 70,598 Derivative assets: Interest rate lock commitments 1,489 — 1,489 — Customer-initiated derivatives 1,588 — 1,588 — Total derivatives 3,077 — 3,077 — Total assets at fair value $ 927,473 $ — $ 833,527 $ 93,946 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 803 — 803 — Customer-initiated derivatives 1,477 — 1,477 — Risk management derivatives 222 — 222 — Total derivatives 2,502 — 2,502 — Total liabilities at fair value $ 2,502 $ — $ 2,502 $ — During the nine months ended September 30, 2015 , a privately issued subordinated debt security (included within “Corporate debt securities”) was transferred from Level 3 in the fair value hierarchy to Level 2 due to the market for this security becoming active during the period. There were no transfers between levels within the fair value hierarchy during the three months ended September 30, 2015 or the three and nine months ended September 30, 2014 . 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, 2015 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Corporate debt securities Loans held for investment Loan servicing rights Balance, beginning of period $ 318 $ 448 $ 20,907 $ 58,894 Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” — 1 — — Recorded in “Mortgage banking and other loan fees” — — 236 (5,867 ) Recorded in OCI (pre-tax) — (19 ) — — New originations — — — 2,759 Repayments — — (246 ) — Balance, end of period $ 318 $ 430 $ 20,897 $ 55,786 Nine months ended September 30, 2015 Securities available-for-sale (Dollars in thousands) Taxable obligations of Corporate debt Loans held for Loan servicing Balance, beginning of period $ 397 $ 3,425 $ 19,526 $ 70,598 Transfer between levels within fair value hierarchy — (3,000 ) — — Transfers from loans held for sale — — 3,983 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” 1 3 — — Recorded in “Net gain on sales of loans” — — 139 — Recorded in “Mortgage banking and other loan fees” — — (3 ) (10,717 ) Recorded in OCI (pre-tax) — 2 — — New originations — — — 8,607 Reduction from servicing rights sold — — — (12,702 ) Repayments (80 ) — (2,748 ) — Balance, end of period $ 318 $ 430 $ 20,897 $ 55,786 Three months ended September 30, 2014 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Corporate debt securities Loans held for investment Loan servicing rights 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 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 “Net gain on sales of loans” — — 8 — Recorded in “Mortgage banking and other loan fees” — — 374 (11,036 ) Recorded in OCI (pre-tax) — 27 — — New originations — — — 6,046 Repayments — — (1,395 ) — Draws on previously issued lines of credits — — 128 — Balance, end of period $ 397 $ 435 $ 17,881 $ 74,380 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, 2015 December 31, 2014 Aggregate fair value $ 20,897 $ 19,526 Contractual balance 20,335 19,100 Fair market value gain 562 426 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, 2015 was $140 thousand and $238 thousand , respectively. Of the aggregate fair value of loans that were 90 days or more past due as of September 30, 2015, $140 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, 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 December 31, 2014, $155 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 months ended September 30, 2015 and 2014 , there were $197 thousand and $164 thousand, respectively, and $610 thousand and $423 thousand for the nine months ended September 30, 2015 and 2014, respectively, of interest income earned on loans transferred from loans held for sale to loans held for investment. The total amount of gains (losses) from changes in fair value of loans held for investment measured at fair value in the Consolidated Statements of Income were as follows: For the three months ended For the nine months ended (Dollars in thousands) 2015 2014 2015 2014 Change in fair value: Included in “Net gain on sales of loans” $ — $ — $ 139 $ 8 Included in “Mortgage banking and other loan fees” 236 (93 ) (3 ) 374 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, 2015 or December 31, 2014 . 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, 2015 December 31, 2014 Aggregate fair value $ 100,255 $ 93,453 Contractual balance 96,781 89,138 Unrealized gain 3,474 4,315 The total amount of gains (losses) from changes in fair value of loans held for sale 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 (Dollars in thousands) 2015 2014 2015 2014 Change in fair value $ 283 $ (1,935 ) $ (841 ) $ 2,899 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 Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2015 Impaired loans:(1) Uncovered Residential real estate $ 2,569 $ — $ — $ 2,569 Commercial real estate 463 — — 463 Commercial and industrial 2,639 — — 2,639 Total uncovered impaired loans 5,671 — — 5,671 Covered Residential real estate 212 — — 212 Commercial real estate 125 — — 125 Total covered impaired loans 337 — — 337 Total impaired loans 6,008 — — 6,008 Other real estate owned (uncovered)(2) 3,235 — — 3,235 Other real estate owned (covered)(3) 1,082 — — 1,082 Repossessed assets(4) 5,514 — — 5,514 Premises and equipment(5) 1,575 — |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses. (Dollars in thousands) Amortized Gross Gross Fair Value September 30, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 97,905 $ 1,218 $ (23 ) $ 99,100 Obligations of state and political subdivisions: Taxable 318 — — 318 Tax-exempt 274,127 4,171 (567 ) 277,731 SBA Pools 29,884 531 (2 ) 30,413 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 303,208 4,212 (65 ) 307,355 Privately issued 58,328 67 (198 ) 58,197 Privately issued commercial mortgage-backed securities 19,222 20 (100 ) 19,142 Corporate debt securities 88,200 421 (172 ) 88,449 Total securities available-for-sale $ 871,192 $ 10,640 $ (1,127 ) $ 880,705 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Securities held-to-maturity $ 1,678 $ — $ — $ 1,678 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2014 Securities available-for-sale: U.S. government sponsored agency obligations $ 97,746 $ 791 $ (179 ) $ 98,358 Obligations of state and political subdivisions: Taxable 397 — — 397 Tax-exempt 229,404 3,578 (723 ) 232,259 SBA Pools 33,824 209 (100 ) 33,933 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 289,156 2,886 (283 ) 291,759 Privately issued 18,814 27 (41 ) 18,800 Privately issued commercial mortgage-backed securities 5,127 3 — 5,130 Corporate debt securities 60,206 209 (232 ) 60,183 Total securities available-for-sale $ 734,674 $ 7,703 $ (1,558 ) $ 740,819 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Securities held-to-maturity $ 1,226 $ — $ — $ 1,226 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 (Dollars in thousands) 2015 2014 2015 2014 Proceeds $ 28,300 $ 28,285 $ 53,050 $ 82,496 Gross gains 403 248 412 248 Gross losses (201 ) (4 ) (311 ) (2,314 ) The amortized cost and fair value of debt securities by contractual maturity at September 30, 2015 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, 2015 (Dollars in thousands) Amortized Cost Fair Value Securities with contractual maturities: Within one year $ 7,086 $ 7,146 After one year through five years 156,992 158,923 After five years through ten years 197,634 199,479 After ten years 509,480 515,157 Total securities available-for-sale $ 871,192 $ 880,705 Securities held-to-maturity: After one year through five years 1,678 1,678 Total securities held-to-maturity $ 1,678 $ 1,678 Securities with a carrying value of $396.7 million and $337.8 million were pledged at September 30, 2015 and December 31, 2014 , respectively, to secure borrowings and deposits. At September 30, 2015 and December 31, 2014 , there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. 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 losses Fair Value Unrealized losses Fair Value Unrealized losses September 30, 2015 U.S. government sponsored agency obligations $ 14,977 $ (23 ) $ — $ — $ 14,977 $ (23 ) Obligations of state and political subdivisions: Tax-exempt 60,604 (405 ) 8,188 (162 ) 68,792 (567 ) SBA Pools 1,585 (2 ) — — 1,585 (2 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 52,889 (65 ) — — 52,889 (65 ) Privately issued 39,175 (198 ) — — 39,175 (198 ) Privately issued commercial mortgage-backed securities 14,036 (100 ) — — 14,036 (100 ) Corporate debt securities 32,325 (152 ) 430 (20 ) 32,755 (172 ) Total securities available-for-sale $ 215,591 $ (945 ) $ 8,618 $ (182 ) $ 224,209 $ (1,127 ) December 31, 2014 U.S. government sponsored agency obligations $ — $ — $ 14,821 $ (179 ) $ 14,821 $ (179 ) Obligations of state and political subdivisions: Tax-exempt 31,054 (260 ) 33,650 (463 ) 64,704 (723 ) SBA Pools 1,844 (4 ) 17,682 (96 ) 19,526 (100 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 36,261 (85 ) 27,361 (198 ) 63,622 (283 ) Privately issued 7,801 (41 ) 8 — 7,809 (41 ) Corporate debt securities 22,520 (162 ) 8,912 (70 ) 31,432 (232 ) Total securities available-for-sale $ 99,480 $ (552 ) $ 102,434 $ (1,006 ) $ 201,914 $ (1,558 ) As of September 30, 2015 , the Company’s security portfolio consisted of 337 securities, 77 of which were in an unrealized loss position. The unrealized losses for these securities resulted primarily from changes in benchmark U.S. Treasury 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, 2015 . The unrealized losses are spread across asset classes, primarily in those securities carrying fixed interest rates. At September 30, 2015 , the combination of these security asset class holdings in an unrealized loss position had an estimated fair value of $224.2 million with gross unrealized losses of $1.1 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 in select assets classes since their respective acquisition dates. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS | 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, service industry, professional service areas and agricultural. 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, 2015 and December 31, 2014 were as follows: Covered loans Uncovered loans (Dollars in thousands) Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total covered loans Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total uncovered loans Total September 30, 2015 Residential real estate $ 71,627 $ 18,744 $ 90,371 $ 216,165 $ 1,236,125 $ 1,452,290 $ 1,542,661 Commercial real estate 70,681 6,427 77,108 210,482 1,273,939 1,484,421 1,561,529 Commercial and industrial 8,729 5,167 13,896 20,715 1,176,002 1,196,717 1,210,613 Real estate construction 4,615 534 5,149 6,847 210,188 217,035 222,184 Consumer 103 2 105 9,699 154,797 164,496 164,601 Total $ 155,755 $ 30,874 $ 186,629 $ 463,908 $ 4,051,051 $ 4,514,959 $ 4,701,588 (1) December 31, 2014 Residential real estate $ 86,515 $ 21,711 $ 108,226 $ 239,523 $ 1,186,489 $ 1,426,012 $ 1,534,238 Commercial real estate 160,886 25,776 186,662 190,148 1,120,790 1,310,938 1,497,600 Commercial and industrial 23,752 8,896 32,648 15,499 853,978 869,477 902,125 Real estate construction 8,415 974 9,389 8,309 123,377 131,686 141,075 Consumer 9,469 96 9,565 2,389 162,135 164,524 174,089 Total $ 289,037 $ 57,453 $ 346,490 $ 455,868 $ 3,446,769 $ 3,902,637 $ 4,249,127 (1) (1) Reported net of deferred fees totaling $187 thousand and $4.6 million at September 30, 2015 and December 31, 2014 , 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, other real estate owned obtained through foreclosure and other repossessed assets. 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: (Dollars in thousands) September 30, December 31, Uncovered nonperforming assets Nonaccrual loans Residential real estate $ 17,562 $ 17,374 Commercial real estate 17,940 13,756 Commercial and industrial 9,941 3,550 Real estate construction 333 174 Consumer 264 257 Total nonaccrual loans 46,040 35,111 Other real estate owned and repossessed assets (1) 27,329 36,872 Total uncovered nonperforming assets 73,369 71,983 Covered nonperforming assets Nonaccrual loans Residential real estate 2,010 1,848 Commercial real estate 3,780 15,723 Commercial and industrial 1,678 3,560 Real estate construction 236 713 Consumer 2 13 Total nonaccrual loans 7,706 21,857 Other real estate owned and repossessed assets 5,621 10,719 Total covered nonperforming assets 13,327 32,576 Total nonperforming assets $ 86,696 $ 104,559 Uncovered loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 Residential real estate $ 62 $ 12 Commercial and industrial 15 — Consumer 119 41 Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 $ 196 $ 53 (1) Excludes closed branches and operating facilities. Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows: September 30, 2015 (Dollars in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and still accruing Uncovered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 4,056 $ 1,581 $ 7,560 $ 13,197 $ 1,222,928 $ 1,236,125 $ 62 Commercial real estate 4,780 1,603 12,361 18,744 1,255,195 1,273,939 — Commercial and industrial 1,152 4,029 3,815 8,996 1,167,006 1,176,002 15 Real estate construction — — 199 199 209,989 210,188 — Consumer 1,315 260 252 1,827 152,970 154,797 119 Total $ 11,303 $ 7,473 $ 24,187 $ 42,963 $ 4,008,088 $ 4,051,051 $ 196 Covered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 204 $ 180 $ 744 $ 1,128 $ 17,616 $ 18,744 $ — Commercial real estate — 3 2,086 2,089 4,338 6,427 — Commercial and industrial 7 — 1,675 1,682 3,485 5,167 — Real estate construction — — 227 227 307 534 — Consumer — — — — 2 2 — Total $ 211 $ 183 $ 4,732 $ 5,126 $ 25,748 $ 30,874 $ — December 31, 2014 (Dollars in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and still accruing Uncovered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 11,709 $ 2,044 $ 9,593 $ 23,346 $ 1,163,143 $ 1,186,489 $ 12 Commercial real estate 4,870 1,083 11,333 17,286 1,103,504 1,120,790 — Commercial and industrial 4,679 184 2,960 7,823 846,155 853,978 — Real estate construction 1,004 136 174 1,314 122,063 123,377 — Consumer 964 152 150 1,266 160,869 162,135 41 Total $ 23,226 $ 3,599 $ 24,210 $ 51,035 $ 3,395,734 $ 3,446,769 $ 53 Covered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 238 $ 35 $ 1,179 $ 1,452 $ 20,259 $ 21,711 $ — Commercial real estate — — 4,569 4,569 21,207 25,776 — Commercial and industrial 373 7 2,923 3,303 5,593 8,896 — Real estate construction — — 710 710 264 974 — Consumer — — 2 2 94 96 — Total $ 611 $ 42 $ 9,383 $ 10,036 $ 47,417 $ 57,453 $ — Impaired Loans A loan is impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans included nonperforming loans (including nonperforming TDRs) and performing TDRs. Impaired loans are accounted for at the lower of the present value of expected cash flows or the estimated fair value of the collateral. When the present value of expected cash flows or the fair value of the collateral of an impaired loan not accounted for under ASC 310-30 is less than the amount of unpaid principal outstanding on the loan, the recorded principal balance of the loan is reduced to its carrying value through either a specific allowance for loan loss or a partial charge-off of the loan balance. Information as to total impaired loans (both individually and collectively evaluated for impairment) is as follows: (Dollars in thousands) September 30, December 31, Uncovered Nonaccrual loans $ 46,040 $ 35,111 Performing troubled debt restructurings: Residential real estate 2,402 1,368 Commercial real estate 13,973 3,785 Commercial and industrial 3,433 840 Real estate construction 197 90 Consumer 235 234 Total uncovered performing troubled debt restructurings 20,240 6,317 Total uncovered impaired loans $ 66,280 $ 41,428 Covered Nonaccrual loans $ 7,706 $ 21,857 Performing troubled debt restructurings: Residential real estate 3,185 3,046 Commercial real estate 1,709 9,017 Commercial and industrial 204 1,137 Real estate construction 298 264 Total covered performing troubled debt restructurings 5,396 13,464 Total covered impaired loans $ 13,102 $ 35,321 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, “Receivables — Troubled Debt Restructurings by Creditors” (“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, 2015 , there were $17.6 million of nonperforming TDRs and $25.6 million of performing TDRs included in impaired loans. As of December 31, 2014 , there were $25.0 million of nonperforming TDRs and $19.8 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. If a TDR is subsequently restructured under current market terms, no cumulative concession has been granted to the borrower and the borrower is not experiencing financial difficulties, which is documented by a current credit evaluation, the loan is no longer required to be reported as a TDR. The following tables present the recorded investment of loans modified in TDRs during the three and nine months ended September 30, 2015 and 2014 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 deferral Principal reduction (1) Interest rate Forbearance agreement Total number of loans Total recorded Net charge-offs (recoveries) Provision (benefit) for loan losses (2) For the three months ended September 30, 2015 Uncovered Residential real estate $ 1,131 $ 5 $ 149 $ — 18 $ 1,285 $ 13 $ 5 Commercial real estate 14 — 460 557 8 1,031 — 30 Commercial and industrial 465 — 747 — 16 1,212 — 297 Real estate construction 112 — — — 1 112 — (2 ) Consumer 12 — — — 1 12 4 4 Total uncovered $ 1,734 $ 5 $ 1,356 $ 557 44 $ 3,652 $ 17 $ 334 Covered Residential real estate $ 83 $ 16 $ — $ — 2 $ 99 $ — $ (1 ) Commercial real estate — — 36 — 2 36 34 30 Total covered $ 83 $ 16 $ 36 $ — 4 $ 135 $ 34 $ 29 Total loans $ 1,817 $ 21 $ 1,392 $ 557 48 $ 3,787 $ 51 $ 363 For the nine months ended September 30, 2015 Uncovered Residential real estate $ 1,510 $ 118 $ 865 $ — 42 $ 2,493 $ 57 $ 191 Commercial real estate 101 — 2,222 1,789 21 4,112 96 205 Commercial and industrial 1,007 — 1,876 159 37 3,042 201 544 Real estate construction 155 — 69 22 4 246 — 103 Consumer 44 — — — 3 44 4 4 Total uncovered $ 2,817 $ 118 $ 5,032 $ 1,970 107 $ 9,937 $ 358 $ 1,047 Covered Residential real estate $ 618 $ 16 $ 183 $ — 10 $ 817 $ 5 $ 69 Commercial real estate — — 2,045 — 9 2,045 41 73 Commercial and industrial — — 1 — 1 1 — (3 ) Real estate construction 45 — 9 — 2 54 (2 ) (2 ) Total covered $ 663 $ 16 $ 2,238 $ — 22 $ 2,917 $ 44 $ 137 Total loans $ 3,480 $ 134 $ 7,270 $ 1,970 129 $ 12,854 $ 402 $ 1,184 (1) Loan forgiveness related to loans modified in TDRs for the three and nine months ended September 30, 2015 totaled $21 thousand and $209 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 deferral Principal Reduction (1) Interest rate Forbearance agreement Total number of loans Total recorded investment at September 30, 2014 Net charge-offs (recoveries) Provision (benefit) for loan 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. 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, 2015 and 2014 , including the recorded investment as of September 30, 2015 and 2014 . 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, 2015 For the nine months ended September 30, 2015 (Dollars in thousands) Total number Total recorded Charged off following Total number Total recorded Charged off following Uncovered Residential real estate 14 $ 812 $ 53 16 $ 812 $ 68 Commercial real estate 8 2,176 — 8 2,176 434 Commercial and industrial 4 1 9 4 1 9 Total uncovered 26 2,989 62 28 2,989 511 Covered Residential real estate 2 71 24 2 71 24 Commercial real estate 1 129 — 1 129 — Commercial and industrial 1 1 — 1 1 — Total covered 4 201 24 4 201 24 Total loans 30 $ 3,190 $ 86 32 $ 3,190 $ 535 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 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 At September 30, 2015 , commitments to lend additional funds to borrowers whose terms have been modified in TDRs totaled $275 thousand . The terms of certain other loans that were modified during the years ended September 30, 2015 and 2014 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 Mention Substandard Doubtful (1) Total September 30, 2015 Uncovered loans Commercial real estate $ 1,328,955 $ 64,746 $ 90,212 $ 508 $ 1,484,421 Commercial and industrial 1,121,534 30,474 44,649 60 1,196,717 Real estate construction 212,036 154 4,845 — 217,035 Total $ 2,662,525 $ 95,374 $ 139,706 $ 568 $ 2,898,173 Covered loans Commercial real estate $ 45,069 $ 5,257 $ 26,782 $ — $ 77,108 Commercial and industrial 5,792 536 7,568 — 13,896 Real estate construction 3,164 51 1,934 — 5,149 Total $ 54,025 $ 5,844 $ 36,284 $ — $ 96,153 December 31, 2014 Uncovered loans Commercial real estate $ 1,153,132 $ 63,567 $ 94,239 $ — $ 1,310,938 Commercial and industrial 824,239 29,511 15,727 — 869,477 Real estate construction 123,822 1,981 5,883 — 131,686 Total $ 2,101,193 $ 95,059 $ 115,849 $ — $ 2,312,101 Covered loans Commercial real estate $ 102,952 $ 16,073 $ 67,637 $ — $ 186,662 Commercial and industrial 16,718 1,875 14,055 — 32,648 Real estate construction 3,817 792 4,780 — 9,389 Total $ 123,487 $ 18,740 $ 86,472 $ — $ 228,699 (1) Prior to January 1, 2015, all nonaccrual loans were included in the “Doubtful” risk category. After further review of regulatory guidance, we have reclassified nonaccrual loans with a determinable value to the “Substandard” risk category; therefore, “Substandard” now includes accrual and nonaccrual loans. This change in classification has been made retrospectively and the reclassification is presented within the December 31, 2014 disclosure. 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 September 30, 2015 Uncovered loans Residential real estate $ 1,434,728 $ 17,562 $ 1,452,290 Consumer 164,232 264 164,496 Total $ 1,598,960 $ 17,826 $ 1,616,786 Covered loans Residential real estate $ 88,361 $ 2,010 $ 90,371 Consumer 103 2 105 Total $ 88,464 $ 2,012 $ 90,476 December 31, 2014 Uncovered Residential real estate $ 1,408,638 $ 17,374 $ 1,426,012 Consumer 164,267 257 164,524 Total $ 1,572,905 $ 17,631 $ 1,590,536 Covered loans Residential real estate $ 106,378 $ 1,848 $ 108,226 Consumer 9,552 13 9,565 Total $ 115,930 $ 1,861 $ 117,791 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable, Allowance [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | 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 nonaccrual loans and TDRs. Information as to impaired loans individually evaluated for impairment is as follows: (Dollars in thousands) Recorded investment with no related allowance Recorded investment with related allowance Total recorded investment Contractual principal balance Related allowance September 30, 2015 Uncovered individually evaluated impaired loans Residential real estate $ 14,797 $ 5,167 $ 19,964 $ 25,058 $ 1,466 Commercial real estate 17,282 14,631 31,913 (1 ) 48,641 2,225 Commercial and industrial 10,119 3,255 13,374 (1 ) 16,436 817 Real estate construction 418 112 530 660 103 Consumer 354 145 499 (1 ) 875 65 Total uncovered individually evaluated impaired loans $ 42,970 $ 23,310 $ 66,280 $ 91,670 $ 4,676 Covered individually evaluated impaired loans Residential real estate $ 2,149 $ 3,046 $ 5,195 $ 6,691 $ 448 Commercial real estate 3,361 2,128 5,489 (1 ) 8,851 302 Commercial and industrial 1,654 228 1,882 (1 ) 3,391 41 Real estate construction 489 45 534 760 — Consumer 2 — 2 (1 ) 11 — Total covered individually evaluated impaired loans $ 7,655 $ 5,447 $ 13,102 $ 19,704 $ 791 December 31, 2014 Uncovered individually evaluated impaired loans Residential real estate $ 14,316 $ 4,268 $ 18,584 $ 23,080 $ 1,110 Commercial real estate 7,609 5,956 13,565 17,016 1,276 Commercial and industrial 915 1,884 2,799 2,807 982 Real estate construction 174 — 174 174 — Consumer 296 176 472 610 82 Total uncovered individually evaluated impaired loans $ 23,310 $ 12,284 $ 35,594 $ 43,687 $ 3,450 Covered individually evaluated impaired loans Residential real estate $ 2,155 $ 2,583 $ 4,738 $ 6,388 $ 417 Commercial real estate 10,400 11,985 22,385 28,755 1,277 Commercial and industrial 1,545 779 2,324 2,668 109 Real estate construction 670 — 670 994 — Consumer 11 1 12 39 — Total covered individually evaluated impaired loans $ 14,781 $ 15,348 $ 30,129 $ 38,844 $ 1,803 (1) The September 30, 2015 total uncovered recorded investment includes $11.0 million , $300 thousand and $22 thousand of commercial real estate, commercial and industrial and consumer, respectively, of loans that prior to July 1, 2015 were included within covered loans due to the expiration of the related FDIC loss sharing agreement. For the three months ended For the nine months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Uncovered individually evaluated impaired loans Residential real estate $ 20,808 $ 388 $ 21,235 $ 877 Commercial real estate 31,837 1,255 32,001 2,790 Commercial and industrial 13,776 164 14,856 586 Real estate construction 631 14 683 39 Consumer 596 10 674 37 Total uncovered individually evaluated impaired loans $ 67,648 $ 1,831 $ 69,449 $ 4,329 Covered individually evaluated impaired loans Residential real estate $ 5,249 $ 87 $ 5,325 $ 248 Commercial real estate 6,061 110 6,522 318 Commercial and industrial 2,067 34 2,412 134 Real estate construction 572 12 768 90 Consumer 3 — 3 1 Total covered individually evaluated impaired loans $ 13,952 $ 243 $ 15,030 $ 791 (1) The average recorded investment includes $11.4 million of loans that prior to July 1, 2015 were included within covered loans due to the expiration of the related FDIC loss sharing agreement, of which $11.0 million are commercial and industrial. For the three months ended For the nine months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income 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 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 Commercial Commercial Real estate Consumer Total For the three months ended September 30, 2015 Allowance for loan losses - uncovered: Balance at beginning of period $ 11,088 $ 12,182 $ 10,745 $ 1,448 $ 1,103 $ 36,566 Transfer in from covered (1) 34 2,778 398 338 31 3,579 Provision (benefit) for loan losses (280 ) 335 3,241 41 329 3,666 Gross charge-offs (836 ) (864 ) (375 ) (57 ) (631 ) (2,763 ) Recoveries 1,819 1,538 195 374 106 4,032 Net (charge-offs) recoveries 983 674 (180 ) 317 (525 ) 1,269 Ending allowance for loan losses $ 11,825 $ 15,969 $ 14,204 $ 2,144 $ 938 $ 45,080 For the nine months ended September 30, 2015 Allowance for loan losses - uncovered: Balance at beginning of period $ 12,193 $ 11,128 $ 7,835 $ 1,599 $ 1,064 $ 33,819 Transfer in from covered (1) 34 2,778 398 338 31 3,579 Provision (benefit) for loan losses 379 382 6,607 (88 ) 867 8,147 Gross charge-offs (4,054 ) (5,411 ) (2,377 ) (364 ) (1,210 ) (13,416 ) Recoveries 3,273 7,092 1,741 659 186 12,951 Net (charge-offs) recoveries (781 ) 1,681 (636 ) 295 (1,024 ) (465 ) Ending allowance for loan losses $ 11,825 $ 15,969 $ 14,204 $ 2,144 $ 938 $ 45,080 As of September 30, 2015 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 1,466 $ 2,225 $ 817 $ 103 $ 65 $ 4,676 Collectively evaluated for impairment 5,221 4,881 12,387 711 773 23,973 Accounted for under ASC 310-30 5,138 8,863 1,000 1,330 100 16,431 Allowance for loan losses - uncovered: $ 11,825 $ 15,969 $ 14,204 $ 2,144 $ 938 $ 45,080 Balance of uncovered loans: Individually evaluated for impairment $ 19,964 $ 31,913 $ 13,374 $ 530 $ 499 $ 66,280 Collectively evaluated for impairment 1,216,161 1,242,026 1,162,628 209,658 154,298 3,984,771 Accounted for under ASC 310-30 216,165 210,482 20,715 6,847 9,699 463,908 Total uncovered loans $ 1,452,290 $ 1,484,421 $ 1,196,717 $ 217,035 $ 164,496 $ 4,514,959 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 (1) Effective July 1, 2015, the first of our four non-single family FDIC loss share agreements expired, therefore, the balance of the loans and the related allowance for loan losses were reclassified to uncovered. (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total As of December 31, 2014 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 1,110 $ 1,276 $ 982 $ — $ 82 $ 3,450 Collectively evaluated for impairment 4,850 4,623 5,968 649 820 16,910 Accounted for under ASC 310-30 6,233 5,229 885 950 162 13,459 Allowance for loan losses - uncovered: $ 12,193 $ 11,128 $ 7,835 $ 1,599 $ 1,064 $ 33,819 Balance of uncovered loans: Individually evaluated for impairment $ 18,584 $ 13,565 $ 2,799 $ 174 $ 472 $ 35,594 Collectively evaluated for impairment 1,167,905 1,107,225 851,179 123,203 161,663 3,411,175 Accounted for under ASC 310-30 239,523 190,148 15,499 8,309 2,389 455,868 Total uncovered loans $ 1,426,012 $ 1,310,938 $ 869,477 $ 131,686 $ 164,524 $ 3,902,637 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 For the three months ended September 30, 2015 Allowance for loan losses - covered: Balance at beginning of period $ 4,096 $ 9,166 $ 2,093 $ 954 $ 31 $ 16,340 Transfer out to uncovered (1) (34 ) (2,778 ) (398 ) (338 ) (31 ) (3,579 ) Benefit for loan losses (238 ) (1,413 ) (1,132 ) (70 ) (113 ) (2,966 ) Gross charge-offs (218 ) (861 ) (392 ) (3 ) — (1,474 ) Recoveries 167 985 1,138 29 117 2,436 Net (charge-offs) recoveries (51 ) 124 746 26 117 962 Ending allowance for loan losses $ 3,773 $ 5,099 $ 1,309 $ 572 $ 4 $ 10,757 For the nine months ended September 30, 2015 Allowance for loan losses - covered: Balance at beginning of period $ 3,981 $ 13,663 $ 2,577 $ 1,086 $ 46 $ 21,353 Transfer out to uncovered (1) (34 ) (2,778 ) (398 ) (338 ) (31 ) (3,579 ) Provision (benefit) for loan losses (87 ) (10,113 ) (2,690 ) 256 (133 ) (12,767 ) Gross charge-offs (694 ) (5,449 ) (2,483 ) (965 ) (165 ) (9,756 ) Recoveries 607 9,776 4,303 533 287 15,506 Net (charge-offs) recoveries (87 ) 4,327 1,820 (432 ) 122 5,750 Ending allowance for loan losses $ 3,773 $ 5,099 $ 1,309 $ 572 $ 4 $ 10,757 As of September 30, 2015 Allowance for loan losses - covered: Individually evaluated for impairment $ 448 $ 302 $ 41 $ — $ — $ 791 Collectively evaluated for impairment 87 7 33 — — 127 Accounted for under ASC 310-30 3,238 4,790 1,235 572 4 9,839 Allowance for loan losses - covered: $ 3,773 $ 5,099 $ 1,309 $ 572 $ 4 $ 10,757 Balance of covered loans: Individually evaluated for impairment $ 5,195 $ 5,489 $ 1,882 $ 534 $ 2 $ 13,102 Collectively evaluated for impairment 13,549 938 3,285 — — 17,772 Accounted for under ASC 310-30 71,627 70,681 8,729 4,615 103 155,755 Total covered loans $ 90,371 $ 77,108 $ 13,896 $ 5,149 $ 105 $ 186,629 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 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 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 (1) Effective July 1, 2015, the first of our four non-single family FDIC loss share agreements expired, therefore, the balance of the loans and the related allowance for loan losses were reclassified to uncovered. (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total As of December 31, 2014 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 417 $ 1,277 $ 109 $ — $ — $ 1,803 Collectively evaluated for impairment 123 57 89 7 1 277 Accounted for under ASC 310-30 3,441 12,329 2,379 1,079 45 19,273 Allowance for loan losses - uncovered: $ 3,981 $ 13,663 $ 2,577 $ 1,086 $ 46 $ 21,353 Balance of uncovered loans: Individually evaluated for impairment $ 4,738 $ 22,385 $ 2,324 $ 670 $ 12 $ 30,129 Collectively evaluated for impairment 16,973 3,391 6,572 304 84 27,324 Accounted for under ASC 310-30 86,515 160,886 23,752 8,415 9,469 289,037 Total uncovered loans $ 108,226 $ 186,662 $ 32,648 $ 9,389 $ 9,565 $ 346,490 |
ACQUIRED LOANS AND LOSS SHARE A
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | 9 Months Ended |
Sep. 30, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract] | |
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | 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 were acquired with 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 $27.3 million ( $24.6 million related to the CF Bancorp acquisition and $2.7 million related to the First Banking Center acquisition) at September 30, 2015 compared to $26.9 million ( $22.6 million related to the CF Bancorp acquisition, $4.3 million related to the First Banking Center acquisition and $4 thousand related to the Peoples State Bank acquisition) at December 31, 2014 . 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, Talmer West Bank and First of Huron, Corp. 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 (Dollars in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 260,064 $ 297,420 $ 277,058 $ 302,287 Additions due to acquisitions — — 5,268 32,764 Discount accretion (17,702 ) (22,931 ) (57,908 ) (69,938 ) Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations 16,083 31,988 67,156 72,895 Other activity, net (1) (16,380 ) (15,980 ) (49,509 ) (47,511 ) Balance at end of period $ 242,065 $ 290,497 $ 242,065 $ 290,497 (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. To the extent impairment is recorded on covered loans, 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. To the extent improvement relates to covered loans, 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, 2015 and 2014 for both covered and uncovered purchased credit impaired loans was $16.1 million and $32.0 million, respectively. During the nine months ended September 30, 2015 and 2014, the total identified improvement in the cash flow expectations was $ 67.2 million and $ 72.9 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, 2015 and December 31, 2014 . (Dollars in thousands) September 30, December 31, Contractual cash flows $ 1,085,498 $ 1,281,482 Non-accretable difference (223,770 ) (259,519 ) Accretable yield (242,065 ) (277,058 ) Loans accounted for under ASC 310-30 $ 619,663 $ 744,905 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 (Dollars in thousands) 2015 2014 2015 2014 Benefit for loan losses - covered: Net impairment (benefit) recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) $ 24 $ (1,329 ) $ 2,962 $ 1,036 Additional benefit recorded, net of charge-offs, for covered loans (2,990 ) (4,946 ) (15,729 ) (17,130 ) Total benefit for loan losses-covered $ (2,966 ) $ (6,275 ) $ (12,767 ) $ (16,094 ) Less: FDIC loss share income: Income (expense) recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) (40 ) 176 1,002 3,680 Expense recorded, to offset benefit, for covered loans (1,801 ) (2,978 ) (10,125 ) (10,445 ) Total loss sharing expense due to provision for loan losses-covered (1,841 ) (2,802 ) (9,123 ) (6,765 ) 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) 64 (1,505 ) 1,960 (2,644 ) Net income recorded, for covered loans including those accounted for under ASC 310-20 and ASC 310-40 (1,189 ) (1,968 ) (5,604 ) (6,685 ) Net (increase) decrease to income before taxes $ (1,125 ) $ (3,473 ) $ (3,644 ) $ (9,329 ) (1) The results of re-estimations also included cash flow improvements to be recognized prospectively as an adjustment to the accretable yield on the related covered loans of $3.6 million and $17.4 million for the three months ended September 30, 2015 and 2014 , respectively, and $ 20.4 million and $ 33.9 million for the nine months ended September 30, 2015 and 2014, 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, 2015 and 2014 . 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 September 30, 2015 For the nine months ended September 30, 2015 (Dollars in thousands) FDIC Indemnification Asset FDIC Receivable FDIC Indemnification Asset FDIC Receivable Balance at beginning of period $ 36,997 $ 5,543 $ 67,026 $ 6,062 Accretion (4,366 ) — (22,164 ) — Sales and write-downs of other real estate owned (covered) (17 ) (511 ) (845 ) (495 ) Net effect of change in allowance on covered assets (1) (1,095 ) — (2,295 ) — Reimbursements requested from FDIC (reclassification to FDIC receivable) (968 ) 968 (11,171 ) 11,171 Decreases due to recoveries net of additional claimable expenses incurred (2) — (2,794 ) — (10,412 ) Claim payments received from the FDIC — (588 ) — (3,708 ) Balance at end of period $ 30,551 $ 2,618 $ 30,551 $ 2,618 (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 September 30, 2014 For the nine months ended September 30, 2014 (Dollars in thousands) FDIC Indemnification Asset FDIC Receivable FDIC Indemnification Asset FDIC Receivable 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 Decreases 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. |
OTHER REAL ESTATE OWNED AND REP
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS | 9 Months Ended |
Sep. 30, 2015 | |
Other Real Estate [Abstract] | |
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS | OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS Changes in other real estate owned and repossessed assets were as follows: Other real estate owned (Dollars in thousands) Uncovered Covered Total other real estate owned Repossessed assets Balance at January 1, 2015 $ 28,247 $ 10,661 $ 38,908 $ 9,835 Additions due to acquisitions 1,260 — 1,260 — Additions due to the adoption of ASU 2014-04 (1) 455 85 540 — Transfers in (2) 15,205 6,985 22,190 1,671 Transfer from covered to uncovered (3) 2,249 (2,249 ) — — Capitalized expenditures — — — 3,701 Payments received — — — (3,989 ) Disposals (23,486 ) (9,069 ) (32,555 ) (725 ) Write-downs (1,837 ) (790 ) (2,627 ) (786 ) Change in valuation allowance — — — (3,870 ) Balance at September 30, 2015 $ 22,093 $ 5,623 $ 27,716 $ 5,837 Balance at January 1, 2014 $ 18,384 $ 11,571 $ 29,955 $ 27 Additions due to acquisitions 30,878 — 30,878 — Transfers in (2) 10,889 7,989 18,878 357 Disposals (24,116 ) (6,189 ) (30,305 ) (292 ) Write-downs (2,861 ) (1,605 ) (4,466 ) — Balance at September 30, 2014 $ 33,174 $ 11,766 $ 44,940 $ 92 (1) The Company adopted the provisions of FASB ASU No. 2014-04, “Reclassification of Residential Real Estate Collaterized Consumer Mortgage Loans Upon Foreclosure” (“ASU 2014-04”) utilizing the prospective transition method. (2) Includes loans transferred to other real estate owned and other repossessed assets and transfers to other real estate owned due to branch or building operation closings/consolidations. (3) Effective July 1, 2015, the first of our four non-single family FDIC loss share agreements expired, therefore the balance of the other real estate owned was reclassified to uncovered. At September 30, 2015 , the Company had $684 thousand of other real estate owned and repossessed assets as a result of obtaining physical possession in accordance with ASU 2014-04. In addition, there are $9.6 million of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process, as of September 30, 2015 . Activity in the valuation allowance for repossessed assets during the three and nine months ended September 30, 2015 is summarized below. There was no valuation allowance for repossessed assets at any time during the three or nine months ended September 30, 2014 . (Dollars in thousands) Valuation allowance For the three months ended September 30, 2015 Beginning balance $ 3,062 Provision for valuation allowance 1,268 Ending Balance $ 4,330 For the nine months ended September 30, 2015 Beginning balance $ 460 Provision for valuation allowance 3,870 Ending Balance $ 4,330 Income and expenses related to other real estate owned and repossessed assets, recorded as a component of “Other expense” in the Consolidated Statements of Income, were as follows: Other real estate owned (Dollars in thousands) Uncovered Covered Total other real estate owned Repossessed assets For the three months ended September 30, 2015 Net gain (loss) on sale $ 2,949 $ 55 $ 3,004 $ (53 ) Write-downs (526 ) (154 ) (680 ) (318 ) Provision for valuation allowance — — — (1,268 ) Net operating expenses (665 ) (67 ) (732 ) (169 ) Total $ 1,758 $ (166 ) $ 1,592 $ (1,808 ) For the nine months ended September 30, 2015 Net gain (loss) on sale $ 6,122 $ (298 ) $ 5,824 $ (93 ) Write-downs (1,837 ) (790 ) (2,627 ) (786 ) Provision for valuation allowance — — — (3,870 ) Net operating expenses (1,555 ) (185 ) (1,740 ) (232 ) Total $ 2,730 $ (1,273 ) $ 1,457 $ (4,981 ) For the three months ended September 30, 2014 Net gain (loss) on sale $ 2,364 $ 63 $ 2,427 $ (4 ) Write-downs (1,361 ) (701 ) (2,062 ) — Net operating expenses (778 ) (60 ) (838 ) (28 ) Total $ 225 $ (698 ) $ (473 ) $ (32 ) For the nine months ended September 30, 2014 Net gain (loss) on sale $ 6,366 $ 294 $ 6,660 $ (8 ) Write-downs (2,861 ) (1,605 ) (4,466 ) — Net operating expenses (2,323 ) (133 ) (2,456 ) (77 ) Total $ 1,182 $ (1,444 ) $ (262 ) $ (85 ) Note that covered expenses and income are partially offset by the corresponding recording of FDIC loss share income or expense. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Core Deposit Intangibles The Company recorded core deposit intangibles (CDIs) associated with each of its acquisitions. CDIs are amortized on an accelerated basis over their estimated useful lives and have an estimated remaining weighted-average useful life of 6.9 years as of September 30, 2015 . The table below presents the Company’s net carrying amount of CDIs. (Dollars in thousands) September 30, December 31, Gross carrying amount $ 23,068 $ 20,658 Accumulated amortization (9,598 ) (7,623 ) Net carrying amount $ 13,470 $ 13,035 Amortization expense recognized on CDIs was $662 thousand and $680 thousand for the three months ended September 30, 2015 and 2014 , respectively, and $ 2.0 million and $ 2.1 million for the nine months ended September 30, 2015 and 2014, respectively, included as a component of “other expense” in the Consolidated Statements of Income. Goodwill The Company recorded goodwill in the amount of $3.5 million associated with the acquisition of First of Huron Corporation completed February 6, 2015. Goodwill is deemed to have an indefinite life and is not amortized but instead is subject to an annual review for impairment. |
LOAN SERVICING RIGHTS
LOAN SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2015 | |
LOAN SERVICING RIGHTS | |
LOAN SERVICING RIGHTS | 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 commercial real estate servicing rights and the origination and purchase of agricultural servicing rights. Loans serviced for others are not reported as assets in the Consolidated Balance Sheets. The following table represents the activity for loan servicing rights and the related fair value changes. (Dollars in thousands) Commercial Real Estate Agricultural Mortgage Total For the three months ended September 30, 2015 Fair value, beginning of period $ 580 $ — $ 58,314 $ 58,894 Additions from loans sold with servicing retained — — 2,759 2,759 Changes in fair value due to: Reductions from loans paid off during the period (44 ) — (1,992 ) (2,036 ) Changes due to valuation inputs or assumptions (1) (27 ) — (3,804 ) (3,831 ) Fair value, end of period $ 509 $ — $ 55,277 $ 55,786 For the nine months ended September 30, 2015 Fair value, beginning of period $ 691 $ — $ 69,907 $ 70,598 Additions from loans sold with servicing retained — — 8,607 8,607 Reduction from loans sold and servicing rights sold (2) — — (12,702 ) (12,702 ) Changes in fair value due to: Reductions from loans paid off during the period (97 ) — (5,851 ) (5,948 ) Changes due to valuation inputs or assumptions (1) (85 ) — (4,684 ) (4,769 ) Fair value, end of period $ 509 $ — $ 55,277 $ 55,786 Principal balance of loans serviced $ 182,450 $ — $ 5,835,058 $ 6,017,508 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 (1) Represents estimated fair value changes primarily due to prepayment speeds and market-driven changes in interest rates. (2) $12.7 million of servicing rights were sold during the nine months ended September 30, 2015 in connection with the sale of $1.2 billion of principal balance of loans serviced. 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, 2015 and December 31, 2014 . Commercial Real Estate Mortgage As of September 30, 2015 Prepayment speed 6.68 - 50.00% 3.62 - 41.76% Weighted average (“WA”) discount rate 19.54 % 9.16 % WA cost to service/per year $ 470 $ 61 WA ancillary income/per year N/A 35 WA float range 0.56 % 1.18 - 1.68% As of December 31, 2014 Prepayment speed 6.41 - 50.00% 3.63 - 40.07% WA discount rate 19.48 % 9.14 % WA cost to service/per year $ 470 $ 61 WA ancillary income/per year N/A 35 WA float range 0.56 % 1.16 - 1.74% The Company realized total loan servicing fee income of $2.6 million and $3.1 million for the three months ended September 30, 2015 and 2014 , respectively, and $ 7.7 million and $ 10.4 million for the nine months ended September 30, 2015 and 2014, respectively, recorded as a component of “Mortgage banking and other loan fees” in the Consolidated Statements of Income. |
DERIVATIVE INSTRUMENTS AND BALA
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING | DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING 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 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 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 for interest rate risk management purposes. 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 additionally utilizes interest rate swaps designated as cash flow hedges for risk management purposes to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. These interest rate swaps designated as cash flow hedges are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings and/or deposits. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative instrument with the changes in cash flows of the designated hedged transactions. The interest rate swaps designated as cash flow hedges were determined to be fully effective during all periods presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedge no longer be considered effective. The Company expects the hedges to remain fully effective and does not expect any amounts to be reclassified from accumulated other comprehensive income due to ineffectiveness during the remaining terms of the swaps. The following table presents the notional amount and fair value of the Company’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and mortgage banking activities. September 30, 2015 December 31, 2014 Fair Value Fair Value (Dollars in thousands) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Risk management purposes: Derivatives designated as hedging instruments: Interest rate swaps $ 22,000 $ — $ 586 $ 12,000 $ — $ 222 Total risk management purposes 22,000 — 586 12,000 — 222 Customer-initiated and mortgage banking activities: Forward contracts related to mortgage loans to be delivered for sale 165,899 — 1,082 114,828 — 803 Interest rate lock commitments 112,057 2,740 — 67,817 1,489 — Customer-initiated derivatives 317,773 5,650 5,684 125,356 1,588 1,477 Total customer-initiated and mortgage banking activities 595,729 8,390 6,766 308,001 3,077 2,280 Total gross derivatives $ 617,729 $ 8,390 $ 7,352 $ 320,001 $ 3,077 $ 2,502 (1) Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. (2) Derivative assets are included within “Other assets” and derivative liabilities are included within “Other liabilities” on the Consolidated Balance Sheets. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $260 thousand at September 30, 2015 and $103 thousand at December 31, 2014 . 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 presents the net gains (losses) related to derivative instruments reflecting the changes in fair value. For the three months ended For the the nine months ended (Dollars in thousands) Location of Gain (Loss) 2015 2014 2015 2014 Forward contracts related to mortgage loans to be delivered for sale Net gain on sale of loans $ (3,128 ) $ (463 ) $ (1,917 ) $ (10,372 ) Interest rate lock commitments Net gain on sale of loans 711 (853 ) 1,253 284 Customer-initiated derivatives Other noninterest income 194 4 156 23 Total loss recognized in income $ (2,223 ) $ (1,312 ) $ (508 ) $ (10,065 ) The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and nine months ended September 30, 2015 . We had no interest rate swaps designated as cash flow hedges in the three and nine months ended September 30, 2014 . (Dollars in thousands) Amount of gain (loss) recognized in other comprehensive income (Effective portion) Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion) Amount of gain (loss) recognized in other non interest income (Ineffective portion) For the three months ended September 30, 2015 Interest rate swaps designated as cash flow hedges $ (893 ) $ (104 ) $ — For the nine months ended September 30, 2015 Interest rate swaps designated as cash flow hedges $ (660 ) $ (296 ) $ — At September 30, 2015 , the Company expected $366 thousand of unrealized losses to be reclassified as an increase to interest expense during the following 12 months. Methods and assumptions used by the Company in estimating the fair value of its forward contracts, interest rate lock commitments, customer-initiated derivatives and interest rate swaps designated as cash flow hedges are discussed in Note 3, “Fair Value”. Balance Sheet Offsetting Certain financial instruments, including derivatives (interest rate swaps designated as cash flow hedges and customer-initiated derivatives), may be eligible for offset in the Consolidated Balance Sheet and/or subject to master netting arrangements or similar agreements. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The tables below present information about the Company’s financial instruments that are eligible for offset. Gross amounts not offset in the statement of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statement of financial condition Net amounts presented in the statement of financial position Financial instruments Collateral (received)/posted Net Amount September 30, 2015 Offsetting derivative assets Derivative assets $ 5,650 $ — $ 5,650 $ (5,650 ) $ 5,140 $ 5,140 Offsetting derivative liabilities Derivative liabilities 6,270 — 6,270 (5,650 ) 620 — December 31, 2014 Offsetting derivative assets Derivative assets $ 1,588 $ — $ 1,588 $ (1,588 ) $ 1,689 $ 1,689 Offsetting derivative liabilities Derivative liabilities 1,699 — 1,699 (1,588 ) 111 — |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 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, accounts receivable, 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 $815 thousand and $539 thousand at September 30, 2015 and December 31, 2014 , 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, 2015 December 31, 2014 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Commitments to extend credit $ 578,956 $ 625,114 $ 1,204,070 $ 502,762 $ 463,362 $ 966,124 Standby letters of credit 63,979 3,526 67,505 69,305 4,197 73,502 Total commitments $ 642,935 $ 628,640 $ 1,271,575 $ 572,067 $ 467,559 $ 1,039,626 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 $24.6 million and $39.8 million at September 30, 2015 and December 31, 2014 , 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 $18.8 million and $31.6 million at September 30, 2015 and December 31, 2014 , respectively. In the event of nonperformance, we have rights to the underlying collateral securing the loans. As of September 30, 2015 and December 31, 2014 , we had recorded a liability of $170 thousand and $355 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, 2015 and December 31, 2014 , our standby letters of credit totaled $67.5 million and $73.5 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, 2015 and December 31, 2014 , our liability recorded in connection with these representations and warranties totaled $1.8 million and $4.0 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. |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 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, 2015 December 31, 2014 (Dollars in thousands) Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings: Securities sold under agreements to repurchase: 0.05% - 0.10% variable-rate notes $ 22,090 0.10 % $ 25,743 0.10 % FHLB advances: fixed-rate notes 50,000 0.37 100,000 0.29 FHLB advances: 0.43% variable-rate notes — — 10,000 0.43 Holding company line of credit: floating-rate based on one-month LIBOR plus 3.00% 30,000 3.20 — — Total short-term borrowings 102,090 1.14 135,743 0.26 Long-term debt: FHLB advances: 0.26% - 7.44% fixed-rate notes due 2015 to 2027 (2) 414,405 1.25 286,804 1.57 Securities sold under agreements to repurchase: 4.11% - 4.30% fixed-rate notes due 2016 to 2037 (3) 55,212 4.19 56,444 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) 10,829 2.56 10,724 2.48 Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due in 2032 (5) 4,535 3.53 — — Total long-term debt 484,981 1.64 353,972 2.02 Total short-term borrowings and long-term debt $ 587,071 1.55 % $ 489,715 1.53 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The September 30, 2015 balance includes advances payable of $409.5 million and purchase accounting premiums of $4.9 million . The December 31, 2014 balance includes advances payable of $280.1 million and purchase accounting premiums of $6.7 million . (3) The September 30, 2015 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $5.2 million . The December 31, 2014 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $6.4 million . (4) The September 30, 2015 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.2 million . The December 31, 2014 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.3 million . (5) The September 30, 2015 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $465 thousand . Selected financial information pertaining to the components of our short-term borrowings is as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2015 2014 2015 2014 Securities sold under agreement to repurchase: Average daily balance $ 25,249 $ 136,707 $ 21,710 $ 97,156 Average interest rate during the period 0.10 % 0.14 % 0.10 % 0.12 % Maximum month-end balance $ 26,703 $ 166,925 $ 26,703 $ 166,925 FHLB advances: Average daily balance $ 164,414 $ 82,935 $ 71,099 $ 40,966 Average interest rate during the period 0.36 % 0.19 % 0.29 % 0.80 % Maximum month-end balance $ 200,000 $ 70,000 $ 200,000 $ 90,000 Federal funds purchased: Average daily balance $ — $ 217 $ 462 $ 1,568 Average interest rate during the period — % 0.31 % 0.31 % 0.27 % Maximum month-end balance $ — $ — $ 126,000 $ — FHLB overnight repurchase agreements: Average daily balance $ — $ — $ — $ 2,931 Average interest rate during the period — % — % — % 0.10 % Maximum month-end balance $ — $ — $ — $ — Holding company line of credit: Average daily balance $ 30,000 $ — $ 20,897 $ 7,436 Average interest rate during the period 3.19 % — % 3.18 % — % Maximum month-end balance $ 30,000 $ — $ 30,000 $ 35,000 Securities sold under agreements to repurchase represent funds deposited with the banks by retail customers (short-term borrowings), of which up to $250 thousand is covered by FDIC insurance for each depositor. Securities sold under agreements to repurchase are typically 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 additionally collateralized by residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government sponsored enterprises with a carrying value of $86.0 million at September 30, 2015 which are not covered by FDIC insurance. The Company's securities sold under agreements to repurchase do not qualify as sales for accounting purposes. Our subsidiary bank is a member 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, 2015 , 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 $545.8 million under specific lien arrangements. Based on this collateral, the Company is eligible to borrow up to an additional $623.2 million at September 30, 2015 ; however, due to Board resolutions, this amount is limited to an additional $394.3 million . In the nine months ended September 30, 2015 , we drew $20.0 million in order to facilitate our repurchase of 2.5 million warrants to purchase shares of our Class A common stock of an aggregate purchase price of $19.9 million and $ 10.0 million for working capital on our existing line of credit. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Provision for income taxes is computed by applying an estimated annual effective tax rate, based on our forecast of annual income from continuing operations, and then adjusting for any additional tax effects required to be recorded discreetly in the quarter to which they relate. A reconciliation of expected income tax expense 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, 2015 2014 2015 2014 (Dollars in thousands) Amount Rate Amount Rate Amount Rate Amount Rate Tax based on federal statutory rate $ 9,261 35.0 % $ 10,297 35.0 % $ 23,121 35.0 % $ 28,823 35.0 % Effect of: Tax exempt income (719 ) (2.7 ) (521 ) (1.8 ) (1,994 ) (3.0 ) (1,723 ) (2.1 ) State taxes, net of federal benefit 329 1.2 666 2.3 789 1.2 1,135 1.4 Change in valuation allowance 2,804 10.6 — — 2,804 4.2 (10,127 ) (12.3 ) Bargain purchase gain — — — — — — (14,692 ) (17.8 ) Transaction costs — — — — 47 0.1 454 0.5 Deferred tax benefit (4,991 ) (18.9 ) — — (4,991 ) (7.6 ) — — Other, net (259 ) (0.9 ) (538 ) (1.8 ) (731 ) (1.1 ) 132 0.2 Income tax expense $ 6,425 24.3 % $ 9,904 33.7 % $ 19,045 28.8 % $ 4,002 4.9 % During the period ended September 30, 2015, the Capital Bancorp, Ltd.'s consolidated tax return (Talmer West Bank's former parent holding company) for the year ended December 31, 2014 was completed. The resulting impact was an allocation of net operating loss to Talmer West Bank that exceeded expectations, thereby generating an additional tax benefit of $5.0 million of net operating loss carry forwards. Management concluded that a valuation allowance in the amount of $2.8 million was necessary based on estimates of future recognized built in losses. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 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. As of September 30, 2015 , 1.3 million shares were available to be awarded under the Plan. 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. For the nine months ended September 30, 2015 , there were no stock options granted. During the nine months ended September 30, 2014 , the Company granted 35 thousand stock options that were fully vested upon issuance and will remain outstanding for 10 years after the grant date. 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, 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. Since limited historical data is available, the expected term of options granted was estimated to be six years for the nine months ended September 30, 2014 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. The expected dividend yield is based on historical and projected dividend patterns of the Company’s common shares. At the time the shares were granted in 2014 there were not any expected dividends projected. 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 was determined using the following weighted-average assumptions as of the grant date. For the nine months ended September 30, 2014 Fair value of options granted $ 4.77 Expected dividend yield — % Expected volatility 30.02 % Risk-free interest rate 1.98 % Expected life (in years) 6.00 Activity in the Plan during the nine months ended September 30, 2015 is summarized below: Weighted average Number of shares (in thousands) Exercise price per share Remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2015 7,958 $ 6.96 Exercised (1) (723 ) 6.85 Outstanding at September 30, 2015 7,235 6.97 5.96 70,039 Options fully vested 7,235 6.97 5.96 70,039 Exercisable at September 30, 2015 7,235 6.97 5.96 70,039 (1) Options exercised during the nine months ended September 30, 2015 had a weighted average fair value of $15.89 , at respective exercise dates. The total intrinsic value of stock options exercised was $6.5 million for the nine months ended September 30, 2015 . Total cash received from option exercises during the nine months ended September 30, 2015 was $210 thousand , resulting in the issuance of 35 thousand shares. During the nine months ended September 30, 2015 , there were 258 thousand shares issued under the net-settlement option. The tax benefit realized from option exercises during the nine months ended September 30, 2015 was $1.8 million . All of the Company’s shares were fully vested prior to January 1, 2015 and there was no unrecognized compensation cost related to nonvested stock options granted under the Plan. Total compensation expense for stock options, included in “Salary and employee benefits” in the Consolidated Statements of Income, was $42 thousand and $429 thousand for the three and nine months ended September 30, 2014 , respectively. 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 vest in their entirety following a five -year service period for employees and over a one -year service period for directors. Restricted stock awards granted to directors during the nine months ended September 30, 2015 additionally contain performance-based vesting conditions. 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 (in thousands) Weighted-average grant-date fair value Nonvested at January 1, 2015 378 $ 14.44 Granted 391 15.10 Vested (19 ) 14.44 Forfeited (11 ) 14.95 Nonvested at September 30, 2015 739 $ 14.78 Total expense for restricted stock awards totaled $515 thousand for the three months ended September 30, 2015 , of which $437 thousand was included in “Salary and employee benefits” related to employees and $78 thousand was included in “Professional fees” related to directors in the Consolidated Statements of Income. For the nine months ended September 30, 2015 , total expense for restricted stock awards totaled $1.4 million , of which $1.2 million was included in "Salary and employee benefits" related to employees and $205 thousand was included in "Professional fees" related to directors in the Consolidated Statements of Income. For the three months ended September 30, 2014 , total expense for restricted stock awards totaled $302 thousand , of which $227 thousand was included in "Salary and employee benefits" related to employees and $75 thousand was included in "Professional fees" related to director 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. As of September 30, 2015 , the total compensation costs related to nonvested restricted stock that has not yet been recognized totaled $9.2 million and the weighted-average period over which these costs are expected to be recognized is 4.1 years . |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL MATTERS | 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, 2015 , the Company and its subsidiary bank 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. Effective January 1, 2015 we adopted the new Basel III regulatory capital framework as approved by federal banking agencies, which are subject to a multi-year phase-in period. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. In addition, Basel III establishes a new capital conservation buffer of 2.5% of risk-weighted assets, which is phased-in over a four -year period beginning January 1, 2016. We have elected to opt-out of including capital in accumulated other comprehensive income in common equity tier 1 capital. At September 30, 2015 and December 31, 2014 , 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. 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. The Consent Order was terminated following the merger of Talmer West Bank with and into Talmer Bank and Trust on August 21, 2015. The following is a summary of actual and required capital amounts and ratios in accordance with current regulatory standards: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2015 (Basel III Transitional) Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 714,836 13.2 % $ 433,301 8.0 % N/A N/A Talmer Bank and Trust 734,680 13.6 432,614 8.0 $ 540,768 10.0 % Common equity tier 1 capital Talmer Bancorp, Inc. (Consolidated) 656,214 12.1 243,732 4.5 N/A N/A Talmer Bank and Trust 676,058 12.5 243,345 4.5 351,499 6.5 Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 656,214 12.1 324,976 6.0 N/A N/A Talmer Bank and Trust 676,058 12.5 324,461 6.0 432,614 8.0 Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 656,214 10.2 256,989 4.0 N/A N/A Talmer Bank and Trust 676,058 11.3 239,862 4.0 299,827 5.0 December 31, 2014 (Basel I) Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 720,552 16.4 % $ 350,645 8.0 % N/A N/A Talmer Bank and Trust 627,851 16.3 308,374 8.0 $ 385,468 10.0 % Talmer West Bank (1) 101,926 19.6 41,628 8.0 N/A N/A Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 666,035 15.2 175,323 4.0 N/A N/A Talmer Bank and Trust 579,604 15.0 154,187 4.0 231,281 6.0 Talmer West Bank (1) 95,656 18.4 20,814 4.0 N/A N/A Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 666,035 11.6 230,546 4.0 N/A N/A Talmer Bank and Trust 579,604 11.6 200,128 4.0 250,160 5.0 Talmer West Bank (1) 95,656 12.4 30,786 4.0 N/A N/A (1) Notwithstanding its capital levels, Talmer West Bank was not categorized as well capitalized while it was subject to the Consent Order. On August 21, 2015, Talmer West Bank was merged with and into Talmer Bank and Trust. 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. These limitations can affect Talmer Bank and Trust’s ability to pay dividends. During the three months ended September 30, 2015 and 2014 , dividends of $80.0 million and $0 , respectively, were paid to the Company by a subsidiary bank, while for the nine months ended September 30, 2015 and 2014, dividends of $95.0 million and $25.0 million , respectively, were paid to the Company by a subsidiary bank. On October 28, 2015, 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 20, 2015, to the Company’s Class A common shareholders of record as of November 9, 2015. |
PARENT COMPANY FINANCIAL STATEM
PARENT COMPANY FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS Balance Sheets - Parent Company (Dollars in thousands) September 30, December 31, Assets Cash and cash equivalents $ 11,745 $ 9,497 Investment in banking subsidiaries 738,327 756,452 Income tax benefit 9,739 7,975 Other assets 1,331 655 Total assets $ 761,142 $ 774,579 Liabilities Short-term borrowings $ 30,000 $ — Long-term debt 15,364 10,724 Accrued expenses and other liabilities 1,010 2,248 Total liabilities 46,374 12,972 Shareholders’ equity 714,768 761,607 Total liabilities and shareholders’ equity $ 761,142 $ 774,579 Statements of Income and Comprehensive Income - Parent Company For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2015 2014 2015 2014 Income Dividend income from subsidiary $ 80,000 $ — $ 95,000 $ 25,000 Bargain purchase gain — — — 41,977 Other noninterest income 34 3 43 8 Total income 80,034 3 95,043 66,985 Expenses Salaries and employee benefits 1,602 1,040 4,494 6,995 Bank acquisition and due diligence fees 88 238 1,243 2,212 Professional service fees 740 455 1,608 1,541 Insurance expense 85 176 198 543 Marketing expense 29 31 78 222 Interest on short-term borrowings 247 — 508 151 Interest on long-term debt 184 128 528 380 Other 35 74 208 222 Total expenses 3,010 2,142 8,865 12,266 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries 77,024 (2,139 ) 86,178 54,719 Income tax benefit 1,000 533 2,735 2,990 Equity in (over)/under distributed earnings of subsidiaries (57,989 ) 21,121 (41,897 ) 20,639 Net income $ 20,035 $ 19,515 $ 47,016 $ 78,348 Total comprehensive income, net of tax $ 23,601 $ 19,369 $ 48,968 $ 88,431 Statements of Cash Flows - Parent Company For the nine months ended September 30, (Dollars in thousands) 2015 2014 Cash flows from operating activities Net income $ 47,016 $ 78,348 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries 41,897 (20,639 ) Gain on acquisition — (41,977 ) Stock-based compensation expense 604 382 (Increase) decrease in income tax benefit (1,381 ) 11 (Increase) decrease in other assets, net (482 ) 551 Decrease in accrued expenses and other liabilities, net (3,620 ) (3,081 ) Net cash from operating activities 84,034 13,595 Cash flows from investing activities Cash (used in) proceeds from acquisitions (13,323 ) (6,500 ) Capital contributions to subsidiaries — (99,500 ) Refund of investment 2,225 — Net cash used in investing activities (11,098 ) (106,000 ) Cash flows from financing activities Issuance of common stock — 42,075 Issuance of common stock and restricted stock awards, including tax benefit (182 ) (963 ) Repurchase of 5.1 million common shares (74,987 ) — Repurchase of warrants to purchase 2.5 million shares, at fair value (19,892 ) — Cash dividends paid on common stock (1) (2,127 ) (704 ) Draw on senior unsecured line of credit 30,000 — Repayment of senior unsecured line of credit — (35,000 ) Repayment of long-term debt (3,500 ) — Net cash from financing activities (70,688 ) 5,408 Net increase (decrease) in cash and cash equivalents 2,248 (86,997 ) Beginning cash and cash equivalents 9,497 98,411 Ending cash and cash equivalents $ 11,745 $ 11,414 (1) $0.03 per share and $0.01 per share for the nine months ended September 30, 2015 and 2014, respectively. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | 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. The factors used in the earnings per share computation follow: For the three months ended For the nine months ended (In thousands, except per share data) 2015 2014 2015 2014 Net income $ 20,035 $ 19,515 $ 47,016 $ 78,348 Net income allocated to participating securities 207 105 407 178 Net income allocated to common shareholders (1) $ 19,828 $ 19,410 $ 46,609 $ 78,170 Weighted average common shares - issued 69,449 70,470 70,354 69,570 Average unvested restricted share awards (718 ) (378 ) (610 ) (156 ) Weighted average common shares outstanding - basic 68,731 70,092 69,744 69,414 Effect of dilutive securities - Employee and director stock options 4,227 4,102 4,201 4,034 Warrants 264 1,558 502 1,500 Weighted average common shares outstanding - diluted 73,222 75,752 74,447 74,948 EPS available to common shareholders Basic $ 0.29 $ 0.28 $ 0.67 $ 1.13 Diluted $ 0.27 $ 0.26 $ 0.63 $ 1.04 (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 $16.58 per share and $14.08 per share for the three months ended September 30, 2015 and 2014 , respectively, and the average stock valuation is $ 15.61 per share and assumed to be $ 13.52 per share for the nine months ended September 30, 2015 and 2014, 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 because they were antidilutive. There were no outstanding antidilutive warrants or options during the three and nine months ended September 30, 2015 and no outstanding antidilutive warrants during the three and nine months ended September 30, 2014 . (Shares in thousands) For the three months ended For the nine months ended Average outstanding options 35 14 Outstanding exercise prices: Low end $ 14.44 $ 14.44 High end $ 14.44 $ 14.44 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (Dollars in thousands) Unrealized gains (losses) on securities available-for-sale, net of tax Unrealized gains (losses) on cash flow hedges, net of tax Total unrealized gains (losses), net of tax Three months ended September 30, 2015 Beginning balance $ 2,105 $ 131 $ 2,236 Other comprehensive income (loss) before reclassifications 4,210 (581 ) 3,629 Amounts reclassified from accumulated other comprehensive income (131 ) (1) 68 (2) (63 ) Net current period other comprehensive income (loss) 4,079 (513 ) 3,566 Ending balance $ 6,184 $ (382 ) $ 5,802 Three months ended September 30, 2014 Beginning balance $ 2,233 $ — $ 2,233 Other comprehensive income before reclassifications 13 — 13 Amounts reclassified from accumulated other comprehensive income (159 ) (1) — (159 ) Net current period other comprehensive loss (146 ) — (146 ) Ending balance $ 2,087 $ — $ 2,087 Nine months ended September 30, 2015 Beginning balance $ 3,995 $ (145 ) $ 3,850 Other comprehensive income (loss) before reclassifications 2,255 (429 ) 1,826 Amounts reclassified from accumulated other comprehensive income (66 ) (1) 192 (2) 126 Net current period other comprehensive income (loss) 2,189 (237 ) 1,952 Ending balance $ 6,184 $ (382 ) $ 5,802 Nine months ended September 30, 2014 Beginning balance $ (7,996 ) $ — $ (7,996 ) Other comprehensive income before reclassifications 8,740 8,740 Amounts reclassified from accumulated other comprehensive income 1,343 (1) 1,343 Net current period other comprehensive income 10,083 — 10,083 Ending balance $ 2,087 $ — $ 2,087 (1) Amounts are included in “Net gain (loss) on sales of securities” in the Consolidated Statements of Income within total noninterest income, calculated using the specific identification method, and were net gains of $202 thousand and $ 244 thousand for the three months ended September 30, 2015 and 2014, respectively, and net gains of $ 101 thousand and net losses of $2.1 million for the nine months ended September 30, 2015 and 2014 , respectively. Income tax provision (benefit) associated with the reclassification adjustments for three months ended September 30, 2015 and 2014 was an expense of $ 71 thousand and $85 thousand , respectively, and for the nine months ended ended September 30, 2015 and 2014 was an expense of $ 35 thousand and a benefit of $723 thousand , respectively, and are included in “Income tax provision” in the Consolidated Statements of Income. (2) Amount is included in “Other brokered funds” in the Consolidated Statements of Income within total interest expense and was $104 thousand for the three months ended September 30, 2015 , and $ 296 thousand for the nine months ended September 30, 2015 . Income tax benefit associated with the reclassification adjustment for the three months ended September 30, 2015 was $36 thousand , and for the nine months ended September 30, 2015 was $ 104 thousand and included in “Income tax provision” in the Consolidated Statements of Income. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
FHC | |
BUSINESS COMBINATIONS | |
Summary of the assets and liabilities purchased in acquisition recorded at fair value | (Dollars in thousands) Consideration paid: Cash $ 13,395 Fair value of identifiable assets acquired: Cash and cash equivalents 14,205 Investment securities 34,022 Federal Home Loan Bank stock 874 Loans 162,265 Premises and equipment 2,077 Company-owned life insurance 4,719 Other real estate owned and repossessed assets 1,260 Core deposit intangible 2,410 Other assets 6,462 Total identifiable assets acquired 228,294 Fair value of liabilities assumed: Deposits 201,453 Long-term debt 13,086 Other liabilities 3,884 Total liabilities assumed 218,423 Fair value of net identifiable assets acquired 9,871 Goodwill recognized in the acquisition $ 3,524 |
Schedule of information regarding acquired loans accounted for under ASC 310-30 as well as excluded from ASC 310-30 accounting at acquisition date | 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 $ 53,807 Contractual cash flows not expected to be collected (nonaccretable difference) 8,084 Expected cash flows 45,723 Interest component of expected cash flows (accretable yield) 5,268 Fair value at acquisition $ 40,455 Excluded from ASC 310-30 accounting: Unpaid principal balance $ 124,538 Fair value discount (2,728 ) Fair value at acquisition 121,810 Total fair value at acquisition $ 162,265 |
Talmer West Bank | |
BUSINESS COMBINATIONS | |
Summary of the assets and liabilities purchased in acquisition recorded at fair value | 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 as presented in the following table. (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 6,540 Loan servicing rights 767 Other real estate owned 30,878 Core deposit intangible 3,633 Other assets 62,542 Total identifiable assets acquired 911,909 Fair value of liabilities assumed: Deposits 857,769 Other liabilities 5,663 Total liabilities assumed 863,432 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 | 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 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 | 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 Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 99,100 $ — $ 99,100 $ — Obligations of state and political subdivisions: Taxable 318 — — 318 Tax-exempt 277,731 — 277,731 — Small Business Administration (“SBA”) Pools 30,413 — 30,413 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 307,355 — 307,355 — Privately issued 58,197 — 58,197 — Privately issued commercial mortgage-backed securities 19,142 — 19,142 — Corporate debt securities 88,449 — 88,019 430 Total securities available-for-sale 880,705 — 879,957 748 Loans measured at fair value: Residential real estate 20,897 — — 20,897 Loans held for sale 100,255 — 100,255 — Loan servicing rights 55,786 — — 55,786 Derivative assets: Interest rate lock commitments 2,740 — 2,740 — Customer-initiated derivatives 5,650 — 5,650 — Total derivatives 8,390 — 8,390 — Total assets at fair value $ 1,066,033 $ — $ 988,602 $ 77,431 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 1,082 — 1,082 — Customer-initiated derivatives 5,684 — 5,684 — Risk management derivatives 586 — 586 — Total derivatives 7,352 — 7,352 — Total liabilities at fair value $ 7,352 $ — $ 7,352 $ — December 31, 2014 Securities available-for-sale: U.S. government sponsored agency obligations $ 98,358 $ — $ 98,358 $ — Obligations of state and political subdivisions: Taxable 397 — — 397 Tax-exempt 232,259 — 232,259 — SBA Pools 33,933 — 33,933 — Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 291,759 — 291,759 — Privately issued 18,800 — 18,800 — Privately issued commercial mortgage-backed securities 5,130 — 5,130 — Corporate debt securities 60,183 — 56,758 3,425 Total securities available-for-sale 740,819 — 736,997 3,822 Loans measured at fair value: Residential real estate 18,311 — — 18,311 Real estate construction 1,215 — — 1,215 Loans held for sale 93,453 — 93,453 — Loan servicing rights 70,598 — — 70,598 Derivative assets: Interest rate lock commitments 1,489 — 1,489 — Customer-initiated derivatives 1,588 — 1,588 — Total derivatives 3,077 — 3,077 — Total assets at fair value $ 927,473 $ — $ 833,527 $ 93,946 Derivative liabilities: Forward contracts related to mortgage loans to be delivered for sale 803 — 803 — Customer-initiated derivatives 1,477 — 1,477 — Risk management derivatives 222 — 222 — Total derivatives 2,502 — 2,502 — Total liabilities at fair value $ 2,502 $ — $ 2,502 $ — |
Summary of the changes in Level 3 assets and liabilities measured at fair value on a recurring basis | 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, 2015 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Corporate debt securities Loans held for investment Loan servicing rights Balance, beginning of period $ 318 $ 448 $ 20,907 $ 58,894 Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” — 1 — — Recorded in “Mortgage banking and other loan fees” — — 236 (5,867 ) Recorded in OCI (pre-tax) — (19 ) — — New originations — — — 2,759 Repayments — — (246 ) — Balance, end of period $ 318 $ 430 $ 20,897 $ 55,786 Nine months ended September 30, 2015 Securities available-for-sale (Dollars in thousands) Taxable obligations of Corporate debt Loans held for Loan servicing Balance, beginning of period $ 397 $ 3,425 $ 19,526 $ 70,598 Transfer between levels within fair value hierarchy — (3,000 ) — — Transfers from loans held for sale — — 3,983 — Gains (losses): Recorded in earnings (realized): Recorded in “Interest on investments” 1 3 — — Recorded in “Net gain on sales of loans” — — 139 — Recorded in “Mortgage banking and other loan fees” — — (3 ) (10,717 ) Recorded in OCI (pre-tax) — 2 — — New originations — — — 8,607 Reduction from servicing rights sold — — — (12,702 ) Repayments (80 ) — (2,748 ) — Balance, end of period $ 318 $ 430 $ 20,897 $ 55,786 Three months ended September 30, 2014 Securities available-for-sale (Dollars in thousands) Taxable obligations of state and political subdivisions Corporate debt securities Loans held for investment Loan servicing rights 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 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 “Net gain on sales of loans” — — 8 — Recorded in “Mortgage banking and other loan fees” — — 374 (11,036 ) Recorded in OCI (pre-tax) — 27 — — New originations — — — 6,046 Repayments — — (1,395 ) — Draws on previously issued lines of credits — — 128 — Balance, end of period $ 397 $ 435 $ 17,881 $ 74,380 |
Schedule of aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans position held for investment | 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, 2015 December 31, 2014 Aggregate fair value $ 20,897 $ 19,526 Contractual balance 20,335 19,100 Fair market value gain 562 426 |
Schedule of aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale | 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, 2015 December 31, 2014 Aggregate fair value $ 100,255 $ 93,453 Contractual balance 96,781 89,138 Unrealized gain 3,474 4,315 |
Schedule of the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis | 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 Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2015 Impaired loans:(1) Uncovered Residential real estate $ 2,569 $ — $ — $ 2,569 Commercial real estate 463 — — 463 Commercial and industrial 2,639 — — 2,639 Total uncovered impaired loans 5,671 — — 5,671 Covered Residential real estate 212 — — 212 Commercial real estate 125 — — 125 Total covered impaired loans 337 — — 337 Total impaired loans 6,008 — — 6,008 Other real estate owned (uncovered)(2) 3,235 — — 3,235 Other real estate owned (covered)(3) 1,082 — — 1,082 Repossessed assets(4) 5,514 — — 5,514 Premises and equipment(5) 1,575 — — 1,575 Total $ 17,414 $ — $ — $ 17,414 December 31, 2014 Impaired loans:(1) Uncovered Residential real estate $ 2,898 $ — $ — $ 2,898 Commercial real estate 4,115 — — 4,115 Commercial and industrial 579 — — 579 Consumer 12 — — 12 Total uncovered impaired loans 7,604 — — 7,604 Covered Residential real estate 152 — — 152 Commercial and industrial 350 — — 350 Total covered impaired loans 502 — — 502 Total impaired loans 8,106 — — 8,106 Other real estate owned (uncovered)(2) 9,670 — — 9,670 Other real estate owned (covered)(3) 3,807 — — 3,807 Repossessed assets(4) 9,654 — — 9,654 Premises and equipment(5) 675 — — 675 Total $ 31,912 $ — $ — $ 31,912 (1) Specific reserves of $2.0 million and $2.9 million were provided to reduce the fair value of these loans at September 30, 2015 and December 31, 2014, respectively, based on the estimated fair value of the underlying collateral. In addition, charge-offs of $81 thousand and $633 thousand reduced the fair value of these loans for the three months ended September 30, 2015 and 2014 , respectively, and $91 thousand and $1.3 million for the nine months ended September 30, 2015 and 2014, respectively. (2) The Company charged $526 thousand and $1.4 million through other noninterest expense during the three months ended September 30, 2015 and 2014 , respectively, and $1.8 million and $2.9 million during the nine months ended September 30, 2015 and 2014, respectively, to reduce the fair value of these properties. (3) The Company charged $154 thousand and $701 thousand through other noninterest expense during the three months ended September 30, 2015 and 2014 , respectively, and $790 thousand and $1.6 million during the nine months ended September 30, 2015 and 2014, 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 $318 thousand and $786 thousand through other noninterest expense during the three and nine months ended September 30, 2015 , respectively, to reduce the fair value of these assets. As of September 30, 2014 , there were no repossessed assets deemed impaired and there were no charges taken relating to these assets during the three and nine months ended September 30, 2014 . A valuation allowance of $4.3 million and $460 thousand was provided to reduce the fair value of these repossessed assets at September 30, 2015 and December 31, 2014 , respectively, based on the estimated fair value as of each respective date. (5) The Company charged $1.1 million through other noninterest expenses during the nine months ended September 30, 2015 and $185 thousand during both the three and nine months ended September 30, 2014 to reduce the value of premises and equipment deemed impaired during the period. There were no impairment charges on premises and equipment during the three months ended September 30, 2015. |
Loans held for investment | |
Fair Value | |
Schedule of total amount of gains/(losses) from changes in fair value included in earnings | The total amount of gains (losses) from changes in fair value of loans held for sale 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 (Dollars in thousands) 2015 2014 2015 2014 Change in fair value $ 283 $ (1,935 ) $ (841 ) $ 2,899 The total amount of gains (losses) from changes in fair value of loans held for investment measured at fair value in the Consolidated Statements of Income were as follows: For the three months ended For the nine months ended (Dollars in thousands) 2015 2014 2015 2014 Change in fair value: Included in “Net gain on sales of loans” $ — $ — $ 139 $ 8 Included in “Mortgage banking and other loan fees” 236 (93 ) (3 ) 374 |
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 | 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, 2015 Financial assets: Cash and cash equivalents $ 329,562 $ 329,562 $ 82,822 $ 246,740 $ — Federal Home Loan Bank stock 25,416 N/A Net loans, excluding covered loans(1) 4,469,879 4,572,634 — — 4,572,634 Net covered loans(2) 175,872 222,614 — — 222,614 Accrued interest receivable 16,096 16,096 — 16,096 — FDIC indemnification asset 30,551 15,759 — — 15,759 FDIC receivable 2,618 2,618 — 2,618 — Company-owned life insurance 105,975 105,975 — 105,975 — Securities held-to-maturity 1,678 1,678 — — 1,678 Financial liabilities: Deposits: Savings and demand deposits $ 3,447,364 $ 3,447,364 $ — $ 3,447,364 $ — Time deposits(3) 1,678,087 1,678,060 — 1,678,060 — Total deposits 5,125,451 5,125,424 — 5,125,424 — FDIC clawback liability 27,269 27,269 — — 27,269 Short-term borrowings 102,090 102,090 — 102,090 — Long-term debt 484,981 479,658 — 479,658 — FDIC warrants payable 4,513 4,513 — — 4,513 Accrued interest payable 3,002 3,002 — 3,002 — Deferred compensation plan liabilities 1,654 1,654 — 1,654 — (1) Included $5.7 million of impaired loans recorded at fair value on a nonrecurring basis and $20.9 million of loans recorded at fair value on a recurring basis. (2) Included $337 thousand of impaired loans recorded at fair value on a nonrecurring basis. (3) Includes $66.8 million of other brokered funds. Estimated Fair Value (Dollars in thousands) Carrying Value Total Level 1 Level 2 Level 3 December 31, 2014 Financial assets: Cash and cash equivalents $ 253,736 $ 253,736 $ 86,185 $ 167,551 $ — Federal Home Loan Bank stock 20,212 N/A Net loans, excluding covered loans(1) 3,868,818 3,948,847 — — 3,948,847 Net covered loans(2) 325,137 420,627 — — 420,627 Accrued interest receivable 12,533 12,533 — 12,533 — FDIC indemnification asset 67,026 34,572 — — 34,572 FDIC receivable 6,062 6,062 — 6,062 — Company-owned life insurance 97,782 97,782 — 97,782 — Securities held-to-maturity 1,226 1,226 — — 1,226 Financial liabilities: Deposits: Savings and demand deposits $ 3,288,414 $ 3,288,414 $ — $ 3,288,414 $ — Time deposits(3) 1,260,449 1,260,453 — 1,260,453 — Total deposits 4,548,863 4,548,867 — 4,548,867 — FDIC clawback liability 26,905 26,905 — — 26,905 Short-term borrowings 135,743 135,743 — 135,743 — Long-term debt 353,972 348,373 — 348,373 — FDIC warrants payable 4,633 4,633 — — 4,633 Accrued interest payable 1,476 1,476 — 1,476 — Deferred compensation plan liabilities 587 587 — 587 — (1) Included $7.6 million of impaired loans recorded at fair value on a nonrecurring basis and $ 19.5 million of loans recorded at fair value on a recurring basis. (2) Included $502 thousand of impaired loans recorded at fair value on a nonrecurring basis. (3) Includes $72.3 million of other brokered funds. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the Company's investment securities available-for-sale | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2014 Securities available-for-sale: U.S. government sponsored agency obligations $ 97,746 $ 791 $ (179 ) $ 98,358 Obligations of state and political subdivisions: Taxable 397 — — 397 Tax-exempt 229,404 3,578 (723 ) 232,259 SBA Pools 33,824 209 (100 ) 33,933 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 289,156 2,886 (283 ) 291,759 Privately issued 18,814 27 (41 ) 18,800 Privately issued commercial mortgage-backed securities 5,127 3 — 5,130 Corporate debt securities 60,206 209 (232 ) 60,183 Total securities available-for-sale $ 734,674 $ 7,703 $ (1,558 ) $ 740,819 The following summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses. (Dollars in thousands) Amortized Gross Gross Fair Value September 30, 2015 Securities available-for-sale: U.S. government sponsored agency obligations $ 97,905 $ 1,218 $ (23 ) $ 99,100 Obligations of state and political subdivisions: Taxable 318 — — 318 Tax-exempt 274,127 4,171 (567 ) 277,731 SBA Pools 29,884 531 (2 ) 30,413 Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 303,208 4,212 (65 ) 307,355 Privately issued 58,328 67 (198 ) 58,197 Privately issued commercial mortgage-backed securities 19,222 20 (100 ) 19,142 Corporate debt securities 88,200 421 (172 ) 88,449 Total securities available-for-sale $ 871,192 $ 10,640 $ (1,127 ) $ 880,705 |
Held-to-maturity securities | Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Securities held-to-maturity $ 1,678 $ — $ — $ 1,678 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value Securities held-to-maturity $ 1,226 $ — $ — $ 1,226 |
Schedule of proceeds from sales of securities and the associated gains and losses recorded in earnings | 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 (Dollars in thousands) 2015 2014 2015 2014 Proceeds $ 28,300 $ 28,285 $ 53,050 $ 82,496 Gross gains 403 248 412 248 Gross losses (201 ) (4 ) (311 ) (2,314 ) |
Schedule of amortized cost and fair value of debt securities by contractual maturity | September 30, 2015 (Dollars in thousands) Amortized Cost Fair Value Securities with contractual maturities: Within one year $ 7,086 $ 7,146 After one year through five years 156,992 158,923 After five years through ten years 197,634 199,479 After ten years 509,480 515,157 Total securities available-for-sale $ 871,192 $ 880,705 Securities held-to-maturity: After one year through five years 1,678 1,678 Total securities held-to-maturity $ 1,678 $ 1,678 |
Summary of the investment securities available-for-sale in an unrealized loss position | 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 losses Fair Value Unrealized losses Fair Value Unrealized losses September 30, 2015 U.S. government sponsored agency obligations $ 14,977 $ (23 ) $ — $ — $ 14,977 $ (23 ) Obligations of state and political subdivisions: Tax-exempt 60,604 (405 ) 8,188 (162 ) 68,792 (567 ) SBA Pools 1,585 (2 ) — — 1,585 (2 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 52,889 (65 ) — — 52,889 (65 ) Privately issued 39,175 (198 ) — — 39,175 (198 ) Privately issued commercial mortgage-backed securities 14,036 (100 ) — — 14,036 (100 ) Corporate debt securities 32,325 (152 ) 430 (20 ) 32,755 (172 ) Total securities available-for-sale $ 215,591 $ (945 ) $ 8,618 $ (182 ) $ 224,209 $ (1,127 ) December 31, 2014 U.S. government sponsored agency obligations $ — $ — $ 14,821 $ (179 ) $ 14,821 $ (179 ) Obligations of state and political subdivisions: Tax-exempt 31,054 (260 ) 33,650 (463 ) 64,704 (723 ) SBA Pools 1,844 (4 ) 17,682 (96 ) 19,526 (100 ) Residential mortgage-backed securities: Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises 36,261 (85 ) 27,361 (198 ) 63,622 (283 ) Privately issued 7,801 (41 ) 8 — 7,809 (41 ) Corporate debt securities 22,520 (162 ) 8,912 (70 ) 31,432 (232 ) Total securities available-for-sale $ 99,480 $ (552 ) $ 102,434 $ (1,006 ) $ 201,914 $ (1,558 ) |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Loans | |
Schedule of loans | Loans at September 30, 2015 and December 31, 2014 were as follows: Covered loans Uncovered loans (Dollars in thousands) Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total covered loans Accounted for under ASC 310-30 Excluded from ASC 310-30 accounting Total uncovered loans Total September 30, 2015 Residential real estate $ 71,627 $ 18,744 $ 90,371 $ 216,165 $ 1,236,125 $ 1,452,290 $ 1,542,661 Commercial real estate 70,681 6,427 77,108 210,482 1,273,939 1,484,421 1,561,529 Commercial and industrial 8,729 5,167 13,896 20,715 1,176,002 1,196,717 1,210,613 Real estate construction 4,615 534 5,149 6,847 210,188 217,035 222,184 Consumer 103 2 105 9,699 154,797 164,496 164,601 Total $ 155,755 $ 30,874 $ 186,629 $ 463,908 $ 4,051,051 $ 4,514,959 $ 4,701,588 (1) December 31, 2014 Residential real estate $ 86,515 $ 21,711 $ 108,226 $ 239,523 $ 1,186,489 $ 1,426,012 $ 1,534,238 Commercial real estate 160,886 25,776 186,662 190,148 1,120,790 1,310,938 1,497,600 Commercial and industrial 23,752 8,896 32,648 15,499 853,978 869,477 902,125 Real estate construction 8,415 974 9,389 8,309 123,377 131,686 141,075 Consumer 9,469 96 9,565 2,389 162,135 164,524 174,089 Total $ 289,037 $ 57,453 $ 346,490 $ 455,868 $ 3,446,769 $ 3,902,637 $ 4,249,127 (1) (1) Reported net of deferred fees totaling $187 thousand and $4.6 million at September 30, 2015 and December 31, 2014 , respectively. |
Schedule of information as to nonperforming assets | Information as to nonperforming assets was as follows: (Dollars in thousands) September 30, December 31, Uncovered nonperforming assets Nonaccrual loans Residential real estate $ 17,562 $ 17,374 Commercial real estate 17,940 13,756 Commercial and industrial 9,941 3,550 Real estate construction 333 174 Consumer 264 257 Total nonaccrual loans 46,040 35,111 Other real estate owned and repossessed assets (1) 27,329 36,872 Total uncovered nonperforming assets 73,369 71,983 Covered nonperforming assets Nonaccrual loans Residential real estate 2,010 1,848 Commercial real estate 3,780 15,723 Commercial and industrial 1,678 3,560 Real estate construction 236 713 Consumer 2 13 Total nonaccrual loans 7,706 21,857 Other real estate owned and repossessed assets 5,621 10,719 Total covered nonperforming assets 13,327 32,576 Total nonperforming assets $ 86,696 $ 104,559 Uncovered loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 Residential real estate $ 62 $ 12 Commercial and industrial 15 — Consumer 119 41 Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 $ 196 $ 53 (1) Excludes closed branches and operating facilities. |
Schedule of information as to impaired loans both individually and collectively evaluated for impairment | Information as to total impaired loans (both individually and collectively evaluated for impairment) is as follows: (Dollars in thousands) September 30, December 31, Uncovered Nonaccrual loans $ 46,040 $ 35,111 Performing troubled debt restructurings: Residential real estate 2,402 1,368 Commercial real estate 13,973 3,785 Commercial and industrial 3,433 840 Real estate construction 197 90 Consumer 235 234 Total uncovered performing troubled debt restructurings 20,240 6,317 Total uncovered impaired loans $ 66,280 $ 41,428 Covered Nonaccrual loans $ 7,706 $ 21,857 Performing troubled debt restructurings: Residential real estate 3,185 3,046 Commercial real estate 1,709 9,017 Commercial and industrial 204 1,137 Real estate construction 298 264 Total covered performing troubled debt restructurings 5,396 13,464 Total covered impaired loans $ 13,102 $ 35,321 |
Schedule of the recorded investment of loans modified in TDRs during the period by type of concession granted | The following tables present the recorded investment of loans modified in TDRs during the three and nine months ended September 30, 2015 and 2014 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 deferral Principal reduction (1) Interest rate Forbearance agreement Total number of loans Total recorded Net charge-offs (recoveries) Provision (benefit) for loan losses (2) For the three months ended September 30, 2015 Uncovered Residential real estate $ 1,131 $ 5 $ 149 $ — 18 $ 1,285 $ 13 $ 5 Commercial real estate 14 — 460 557 8 1,031 — 30 Commercial and industrial 465 — 747 — 16 1,212 — 297 Real estate construction 112 — — — 1 112 — (2 ) Consumer 12 — — — 1 12 4 4 Total uncovered $ 1,734 $ 5 $ 1,356 $ 557 44 $ 3,652 $ 17 $ 334 Covered Residential real estate $ 83 $ 16 $ — $ — 2 $ 99 $ — $ (1 ) Commercial real estate — — 36 — 2 36 34 30 Total covered $ 83 $ 16 $ 36 $ — 4 $ 135 $ 34 $ 29 Total loans $ 1,817 $ 21 $ 1,392 $ 557 48 $ 3,787 $ 51 $ 363 For the nine months ended September 30, 2015 Uncovered Residential real estate $ 1,510 $ 118 $ 865 $ — 42 $ 2,493 $ 57 $ 191 Commercial real estate 101 — 2,222 1,789 21 4,112 96 205 Commercial and industrial 1,007 — 1,876 159 37 3,042 201 544 Real estate construction 155 — 69 22 4 246 — 103 Consumer 44 — — — 3 44 4 4 Total uncovered $ 2,817 $ 118 $ 5,032 $ 1,970 107 $ 9,937 $ 358 $ 1,047 Covered Residential real estate $ 618 $ 16 $ 183 $ — 10 $ 817 $ 5 $ 69 Commercial real estate — — 2,045 — 9 2,045 41 73 Commercial and industrial — — 1 — 1 1 — (3 ) Real estate construction 45 — 9 — 2 54 (2 ) (2 ) Total covered $ 663 $ 16 $ 2,238 $ — 22 $ 2,917 $ 44 $ 137 Total loans $ 3,480 $ 134 $ 7,270 $ 1,970 129 $ 12,854 $ 402 $ 1,184 (1) Loan forgiveness related to loans modified in TDRs for the three and nine months ended September 30, 2015 totaled $21 thousand and $209 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 deferral Principal Reduction (1) Interest rate Forbearance agreement Total number of loans Total recorded investment at September 30, 2014 Net charge-offs (recoveries) Provision (benefit) for loan 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. |
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 | 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, 2015 and 2014 , including the recorded investment as of September 30, 2015 and 2014 . 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, 2015 For the nine months ended September 30, 2015 (Dollars in thousands) Total number Total recorded Charged off following Total number Total recorded Charged off following Uncovered Residential real estate 14 $ 812 $ 53 16 $ 812 $ 68 Commercial real estate 8 2,176 — 8 2,176 434 Commercial and industrial 4 1 9 4 1 9 Total uncovered 26 2,989 62 28 2,989 511 Covered Residential real estate 2 71 24 2 71 24 Commercial real estate 1 129 — 1 129 — Commercial and industrial 1 1 — 1 1 — Total covered 4 201 24 4 201 24 Total loans 30 $ 3,190 $ 86 32 $ 3,190 $ 535 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 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 |
Commercial and industrial, commercial real estate and real estate construction | |
Loans | |
Schedule of loans by credit quality | Commercial and industrial, commercial real estate and real estate construction loans by credit risk category were as follows: (Dollars in thousands) Pass Special Mention Substandard Doubtful (1) Total September 30, 2015 Uncovered loans Commercial real estate $ 1,328,955 $ 64,746 $ 90,212 $ 508 $ 1,484,421 Commercial and industrial 1,121,534 30,474 44,649 60 1,196,717 Real estate construction 212,036 154 4,845 — 217,035 Total $ 2,662,525 $ 95,374 $ 139,706 $ 568 $ 2,898,173 Covered loans Commercial real estate $ 45,069 $ 5,257 $ 26,782 $ — $ 77,108 Commercial and industrial 5,792 536 7,568 — 13,896 Real estate construction 3,164 51 1,934 — 5,149 Total $ 54,025 $ 5,844 $ 36,284 $ — $ 96,153 December 31, 2014 Uncovered loans Commercial real estate $ 1,153,132 $ 63,567 $ 94,239 $ — $ 1,310,938 Commercial and industrial 824,239 29,511 15,727 — 869,477 Real estate construction 123,822 1,981 5,883 — 131,686 Total $ 2,101,193 $ 95,059 $ 115,849 $ — $ 2,312,101 Covered loans Commercial real estate $ 102,952 $ 16,073 $ 67,637 $ — $ 186,662 Commercial and industrial 16,718 1,875 14,055 — 32,648 Real estate construction 3,817 792 4,780 — 9,389 Total $ 123,487 $ 18,740 $ 86,472 $ — $ 228,699 (1) Prior to January 1, 2015, all nonaccrual loans were included in the “Doubtful” risk category. After further review of regulatory guidance, we have reclassified nonaccrual loans with a determinable value to the “Substandard” risk category; therefore, “Substandard” now includes accrual and nonaccrual loans. This change in classification has been made retrospectively and the reclassification is presented within the December 31, 2014 disclosure. |
Residential real estate and consumer loans | |
Loans | |
Schedule of loans by credit quality | The following table presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total September 30, 2015 Uncovered loans Residential real estate $ 1,434,728 $ 17,562 $ 1,452,290 Consumer 164,232 264 164,496 Total $ 1,598,960 $ 17,826 $ 1,616,786 Covered loans Residential real estate $ 88,361 $ 2,010 $ 90,371 Consumer 103 2 105 Total $ 88,464 $ 2,012 $ 90,476 December 31, 2014 Uncovered Residential real estate $ 1,408,638 $ 17,374 $ 1,426,012 Consumer 164,267 257 164,524 Total $ 1,572,905 $ 17,631 $ 1,590,536 Covered loans Residential real estate $ 106,378 $ 1,848 $ 108,226 Consumer 9,552 13 9,565 Total $ 115,930 $ 1,861 $ 117,791 |
Excluded from ASC 310-30 accounting | |
Loans | |
Schedule of loan delinquency | Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows: September 30, 2015 (Dollars in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and still accruing Uncovered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 4,056 $ 1,581 $ 7,560 $ 13,197 $ 1,222,928 $ 1,236,125 $ 62 Commercial real estate 4,780 1,603 12,361 18,744 1,255,195 1,273,939 — Commercial and industrial 1,152 4,029 3,815 8,996 1,167,006 1,176,002 15 Real estate construction — — 199 199 209,989 210,188 — Consumer 1,315 260 252 1,827 152,970 154,797 119 Total $ 11,303 $ 7,473 $ 24,187 $ 42,963 $ 4,008,088 $ 4,051,051 $ 196 Covered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 204 $ 180 $ 744 $ 1,128 $ 17,616 $ 18,744 $ — Commercial real estate — 3 2,086 2,089 4,338 6,427 — Commercial and industrial 7 — 1,675 1,682 3,485 5,167 — Real estate construction — — 227 227 307 534 — Consumer — — — — 2 2 — Total $ 211 $ 183 $ 4,732 $ 5,126 $ 25,748 $ 30,874 $ — December 31, 2014 (Dollars in thousands) 30-59 days past due 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days or more past due and still accruing Uncovered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 11,709 $ 2,044 $ 9,593 $ 23,346 $ 1,163,143 $ 1,186,489 $ 12 Commercial real estate 4,870 1,083 11,333 17,286 1,103,504 1,120,790 — Commercial and industrial 4,679 184 2,960 7,823 846,155 853,978 — Real estate construction 1,004 136 174 1,314 122,063 123,377 — Consumer 964 152 150 1,266 160,869 162,135 41 Total $ 23,226 $ 3,599 $ 24,210 $ 51,035 $ 3,395,734 $ 3,446,769 $ 53 Covered loans, excluding loans accounted for under ASC 310-30 Residential real estate $ 238 $ 35 $ 1,179 $ 1,452 $ 20,259 $ 21,711 $ — Commercial real estate — — 4,569 4,569 21,207 25,776 — Commercial and industrial 373 7 2,923 3,303 5,593 8,896 — Real estate construction — — 710 710 264 974 — Consumer — — 2 2 94 96 — Total $ 611 $ 42 $ 9,383 $ 10,036 $ 47,417 $ 57,453 $ — |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Allowance for loan losses | |
Schedule of information as to impaired loans individually evaluated for impairment | Information as to impaired loans individually evaluated for impairment is as follows: (Dollars in thousands) Recorded investment with no related allowance Recorded investment with related allowance Total recorded investment Contractual principal balance Related allowance September 30, 2015 Uncovered individually evaluated impaired loans Residential real estate $ 14,797 $ 5,167 $ 19,964 $ 25,058 $ 1,466 Commercial real estate 17,282 14,631 31,913 (1 ) 48,641 2,225 Commercial and industrial 10,119 3,255 13,374 (1 ) 16,436 817 Real estate construction 418 112 530 660 103 Consumer 354 145 499 (1 ) 875 65 Total uncovered individually evaluated impaired loans $ 42,970 $ 23,310 $ 66,280 $ 91,670 $ 4,676 Covered individually evaluated impaired loans Residential real estate $ 2,149 $ 3,046 $ 5,195 $ 6,691 $ 448 Commercial real estate 3,361 2,128 5,489 (1 ) 8,851 302 Commercial and industrial 1,654 228 1,882 (1 ) 3,391 41 Real estate construction 489 45 534 760 — Consumer 2 — 2 (1 ) 11 — Total covered individually evaluated impaired loans $ 7,655 $ 5,447 $ 13,102 $ 19,704 $ 791 December 31, 2014 Uncovered individually evaluated impaired loans Residential real estate $ 14,316 $ 4,268 $ 18,584 $ 23,080 $ 1,110 Commercial real estate 7,609 5,956 13,565 17,016 1,276 Commercial and industrial 915 1,884 2,799 2,807 982 Real estate construction 174 — 174 174 — Consumer 296 176 472 610 82 Total uncovered individually evaluated impaired loans $ 23,310 $ 12,284 $ 35,594 $ 43,687 $ 3,450 Covered individually evaluated impaired loans Residential real estate $ 2,155 $ 2,583 $ 4,738 $ 6,388 $ 417 Commercial real estate 10,400 11,985 22,385 28,755 1,277 Commercial and industrial 1,545 779 2,324 2,668 109 Real estate construction 670 — 670 994 — Consumer 11 1 12 39 — Total covered individually evaluated impaired loans $ 14,781 $ 15,348 $ 30,129 $ 38,844 $ 1,803 (1) The September 30, 2015 total uncovered recorded investment includes $11.0 million , $300 thousand and $22 thousand of commercial real estate, commercial and industrial and consumer, respectively, of loans that prior to July 1, 2015 were included within covered loans due to the expiration of the related FDIC loss sharing agreement. |
Schedule showing the average recorded investment and interest income recognized on loans | For the three months ended For the nine months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income Uncovered individually evaluated impaired loans Residential real estate $ 20,808 $ 388 $ 21,235 $ 877 Commercial real estate 31,837 1,255 32,001 2,790 Commercial and industrial 13,776 164 14,856 586 Real estate construction 631 14 683 39 Consumer 596 10 674 37 Total uncovered individually evaluated impaired loans $ 67,648 $ 1,831 $ 69,449 $ 4,329 Covered individually evaluated impaired loans Residential real estate $ 5,249 $ 87 $ 5,325 $ 248 Commercial real estate 6,061 110 6,522 318 Commercial and industrial 2,067 34 2,412 134 Real estate construction 572 12 768 90 Consumer 3 — 3 1 Total covered individually evaluated impaired loans $ 13,952 $ 243 $ 15,030 $ 791 (1) The average recorded investment includes $11.4 million of loans that prior to July 1, 2015 were included within covered loans due to the expiration of the related FDIC loss sharing agreement, of which $11.0 million are commercial and industrial. For the three months ended For the nine months ended (Dollars in thousands) Average recorded Interest income Average recorded Interest income 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 |
Uncovered | |
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 As of December 31, 2014 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 1,110 $ 1,276 $ 982 $ — $ 82 $ 3,450 Collectively evaluated for impairment 4,850 4,623 5,968 649 820 16,910 Accounted for under ASC 310-30 6,233 5,229 885 950 162 13,459 Allowance for loan losses - uncovered: $ 12,193 $ 11,128 $ 7,835 $ 1,599 $ 1,064 $ 33,819 Balance of uncovered loans: Individually evaluated for impairment $ 18,584 $ 13,565 $ 2,799 $ 174 $ 472 $ 35,594 Collectively evaluated for impairment 1,167,905 1,107,225 851,179 123,203 161,663 3,411,175 Accounted for under ASC 310-30 239,523 190,148 15,499 8,309 2,389 455,868 Total uncovered loans $ 1,426,012 $ 1,310,938 $ 869,477 $ 131,686 $ 164,524 $ 3,902,637 Changes in the allowance for loan losses and the allocation of the allowance for uncovered loans were as follows: (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total For the three months ended September 30, 2015 Allowance for loan losses - uncovered: Balance at beginning of period $ 11,088 $ 12,182 $ 10,745 $ 1,448 $ 1,103 $ 36,566 Transfer in from covered (1) 34 2,778 398 338 31 3,579 Provision (benefit) for loan losses (280 ) 335 3,241 41 329 3,666 Gross charge-offs (836 ) (864 ) (375 ) (57 ) (631 ) (2,763 ) Recoveries 1,819 1,538 195 374 106 4,032 Net (charge-offs) recoveries 983 674 (180 ) 317 (525 ) 1,269 Ending allowance for loan losses $ 11,825 $ 15,969 $ 14,204 $ 2,144 $ 938 $ 45,080 For the nine months ended September 30, 2015 Allowance for loan losses - uncovered: Balance at beginning of period $ 12,193 $ 11,128 $ 7,835 $ 1,599 $ 1,064 $ 33,819 Transfer in from covered (1) 34 2,778 398 338 31 3,579 Provision (benefit) for loan losses 379 382 6,607 (88 ) 867 8,147 Gross charge-offs (4,054 ) (5,411 ) (2,377 ) (364 ) (1,210 ) (13,416 ) Recoveries 3,273 7,092 1,741 659 186 12,951 Net (charge-offs) recoveries (781 ) 1,681 (636 ) 295 (1,024 ) (465 ) Ending allowance for loan losses $ 11,825 $ 15,969 $ 14,204 $ 2,144 $ 938 $ 45,080 As of September 30, 2015 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 1,466 $ 2,225 $ 817 $ 103 $ 65 $ 4,676 Collectively evaluated for impairment 5,221 4,881 12,387 711 773 23,973 Accounted for under ASC 310-30 5,138 8,863 1,000 1,330 100 16,431 Allowance for loan losses - uncovered: $ 11,825 $ 15,969 $ 14,204 $ 2,144 $ 938 $ 45,080 Balance of uncovered loans: Individually evaluated for impairment $ 19,964 $ 31,913 $ 13,374 $ 530 $ 499 $ 66,280 Collectively evaluated for impairment 1,216,161 1,242,026 1,162,628 209,658 154,298 3,984,771 Accounted for under ASC 310-30 216,165 210,482 20,715 6,847 9,699 463,908 Total uncovered loans $ 1,452,290 $ 1,484,421 $ 1,196,717 $ 217,035 $ 164,496 $ 4,514,959 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 (1) Effective July 1, 2015, the first of our four non-single family FDIC loss share agreements expired, therefore, the balance of the loans and the related allowance for loan losses were reclassified to uncovered. |
Covered loans | |
Allowance for loan losses | |
Schedule of changes in the allowance for loan losses and the allocation of the allowance for 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 For the three months ended September 30, 2015 Allowance for loan losses - covered: Balance at beginning of period $ 4,096 $ 9,166 $ 2,093 $ 954 $ 31 $ 16,340 Transfer out to uncovered (1) (34 ) (2,778 ) (398 ) (338 ) (31 ) (3,579 ) Benefit for loan losses (238 ) (1,413 ) (1,132 ) (70 ) (113 ) (2,966 ) Gross charge-offs (218 ) (861 ) (392 ) (3 ) — (1,474 ) Recoveries 167 985 1,138 29 117 2,436 Net (charge-offs) recoveries (51 ) 124 746 26 117 962 Ending allowance for loan losses $ 3,773 $ 5,099 $ 1,309 $ 572 $ 4 $ 10,757 For the nine months ended September 30, 2015 Allowance for loan losses - covered: Balance at beginning of period $ 3,981 $ 13,663 $ 2,577 $ 1,086 $ 46 $ 21,353 Transfer out to uncovered (1) (34 ) (2,778 ) (398 ) (338 ) (31 ) (3,579 ) Provision (benefit) for loan losses (87 ) (10,113 ) (2,690 ) 256 (133 ) (12,767 ) Gross charge-offs (694 ) (5,449 ) (2,483 ) (965 ) (165 ) (9,756 ) Recoveries 607 9,776 4,303 533 287 15,506 Net (charge-offs) recoveries (87 ) 4,327 1,820 (432 ) 122 5,750 Ending allowance for loan losses $ 3,773 $ 5,099 $ 1,309 $ 572 $ 4 $ 10,757 As of September 30, 2015 Allowance for loan losses - covered: Individually evaluated for impairment $ 448 $ 302 $ 41 $ — $ — $ 791 Collectively evaluated for impairment 87 7 33 — — 127 Accounted for under ASC 310-30 3,238 4,790 1,235 572 4 9,839 Allowance for loan losses - covered: $ 3,773 $ 5,099 $ 1,309 $ 572 $ 4 $ 10,757 Balance of covered loans: Individually evaluated for impairment $ 5,195 $ 5,489 $ 1,882 $ 534 $ 2 $ 13,102 Collectively evaluated for impairment 13,549 938 3,285 — — 17,772 Accounted for under ASC 310-30 71,627 70,681 8,729 4,615 103 155,755 Total covered loans $ 90,371 $ 77,108 $ 13,896 $ 5,149 $ 105 $ 186,629 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 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 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 (1) Effective July 1, 2015, the first of our four non-single family FDIC loss share agreements expired, therefore, the balance of the loans and the related allowance for loan losses were reclassified to uncovered. (Dollars in thousands) Residential Commercial Commercial Real estate Consumer Total As of December 31, 2014 Allowance for loan losses - uncovered: Individually evaluated for impairment $ 417 $ 1,277 $ 109 $ — $ — $ 1,803 Collectively evaluated for impairment 123 57 89 7 1 277 Accounted for under ASC 310-30 3,441 12,329 2,379 1,079 45 19,273 Allowance for loan losses - uncovered: $ 3,981 $ 13,663 $ 2,577 $ 1,086 $ 46 $ 21,353 Balance of uncovered loans: Individually evaluated for impairment $ 4,738 $ 22,385 $ 2,324 $ 670 $ 12 $ 30,129 Collectively evaluated for impairment 16,973 3,391 6,572 304 84 27,324 Accounted for under ASC 310-30 86,515 160,886 23,752 8,415 9,469 289,037 Total uncovered loans $ 108,226 $ 186,662 $ 32,648 $ 9,389 $ 9,565 $ 346,490 |
ACQUIRED LOANS AND LOSS SHARE34
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Abstract] | |
Schedule of changes in the carrying amount of accretable discount for purchased loans | 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 (Dollars in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 260,064 $ 297,420 $ 277,058 $ 302,287 Additions due to acquisitions — — 5,268 32,764 Discount accretion (17,702 ) (22,931 ) (57,908 ) (69,938 ) Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations 16,083 31,988 67,156 72,895 Other activity, net (1) (16,380 ) (15,980 ) (49,509 ) (47,511 ) Balance at end of period $ 242,065 $ 290,497 $ 242,065 $ 290,497 (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 | Below is the composition of the recorded investment for loans accounted for under ASC 310-30 at September 30, 2015 and December 31, 2014 . (Dollars in thousands) September 30, December 31, Contractual cash flows $ 1,085,498 $ 1,281,482 Non-accretable difference (223,770 ) (259,519 ) Accretable yield (242,065 ) (277,058 ) Loans accounted for under ASC 310-30 $ 619,663 $ 744,905 |
Schedule of the components and impact of the provision for loan losses-covered and the related FDIC loss sharing income | 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 (Dollars in thousands) 2015 2014 2015 2014 Benefit for loan losses - covered: Net impairment (benefit) recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) $ 24 $ (1,329 ) $ 2,962 $ 1,036 Additional benefit recorded, net of charge-offs, for covered loans (2,990 ) (4,946 ) (15,729 ) (17,130 ) Total benefit for loan losses-covered $ (2,966 ) $ (6,275 ) $ (12,767 ) $ (16,094 ) Less: FDIC loss share income: Income (expense) recorded as a result of re-estimation of cash flows on loans accounted for under ASC 310-30 (1) (40 ) 176 1,002 3,680 Expense recorded, to offset benefit, for covered loans (1,801 ) (2,978 ) (10,125 ) (10,445 ) Total loss sharing expense due to provision for loan losses-covered (1,841 ) (2,802 ) (9,123 ) (6,765 ) 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) 64 (1,505 ) 1,960 (2,644 ) Net income recorded, for covered loans including those accounted for under ASC 310-20 and ASC 310-40 (1,189 ) (1,968 ) (5,604 ) (6,685 ) Net (increase) decrease to income before taxes $ (1,125 ) $ (3,473 ) $ (3,644 ) $ (9,329 ) (1) The results of re-estimations also included cash flow improvements to be recognized prospectively as an adjustment to the accretable yield on the related covered loans of $3.6 million and $17.4 million for the three months ended September 30, 2015 and 2014 , respectively, and $ 20.4 million and $ 33.9 million for the nine months ended September 30, 2015 and 2014, respectively. |
Summary of the activity related to the FDIC indemnification asset and the FDIC receivable | 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, 2015 and 2014 . 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 September 30, 2015 For the nine months ended September 30, 2015 (Dollars in thousands) FDIC Indemnification Asset FDIC Receivable FDIC Indemnification Asset FDIC Receivable Balance at beginning of period $ 36,997 $ 5,543 $ 67,026 $ 6,062 Accretion (4,366 ) — (22,164 ) — Sales and write-downs of other real estate owned (covered) (17 ) (511 ) (845 ) (495 ) Net effect of change in allowance on covered assets (1) (1,095 ) — (2,295 ) — Reimbursements requested from FDIC (reclassification to FDIC receivable) (968 ) 968 (11,171 ) 11,171 Decreases due to recoveries net of additional claimable expenses incurred (2) — (2,794 ) — (10,412 ) Claim payments received from the FDIC — (588 ) — (3,708 ) Balance at end of period $ 30,551 $ 2,618 $ 30,551 $ 2,618 (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 September 30, 2014 For the nine months ended September 30, 2014 (Dollars in thousands) FDIC Indemnification Asset FDIC Receivable FDIC Indemnification Asset FDIC Receivable 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 Decreases 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. |
OTHER REAL ESTATE OWNED AND R35
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Real Estate [Abstract] | |
Tabular disclosure of the changes in non-covered and covered other real estate on properties owned | Changes in other real estate owned and repossessed assets were as follows: Other real estate owned (Dollars in thousands) Uncovered Covered Total other real estate owned Repossessed assets Balance at January 1, 2015 $ 28,247 $ 10,661 $ 38,908 $ 9,835 Additions due to acquisitions 1,260 — 1,260 — Additions due to the adoption of ASU 2014-04 (1) 455 85 540 — Transfers in (2) 15,205 6,985 22,190 1,671 Transfer from covered to uncovered (3) 2,249 (2,249 ) — — Capitalized expenditures — — — 3,701 Payments received — — — (3,989 ) Disposals (23,486 ) (9,069 ) (32,555 ) (725 ) Write-downs (1,837 ) (790 ) (2,627 ) (786 ) Change in valuation allowance — — — (3,870 ) Balance at September 30, 2015 $ 22,093 $ 5,623 $ 27,716 $ 5,837 Balance at January 1, 2014 $ 18,384 $ 11,571 $ 29,955 $ 27 Additions due to acquisitions 30,878 — 30,878 — Transfers in (2) 10,889 7,989 18,878 357 Disposals (24,116 ) (6,189 ) (30,305 ) (292 ) Write-downs (2,861 ) (1,605 ) (4,466 ) — Balance at September 30, 2014 $ 33,174 $ 11,766 $ 44,940 $ 92 (1) The Company adopted the provisions of FASB ASU No. 2014-04, “Reclassification of Residential Real Estate Collaterized Consumer Mortgage Loans Upon Foreclosure” (“ASU 2014-04”) utilizing the prospective transition method. (2) Includes loans transferred to other real estate owned and other repossessed assets and transfers to other real estate owned due to branch or building operation closings/consolidations. (3) Effective July 1, 2015, the first of our four non-single family FDIC loss share agreements expired, therefore the balance of the other real estate owned was reclassified to uncovered. |
Schedule of activity in the valuation allowance of repossessed assets | Activity in the valuation allowance for repossessed assets during the three and nine months ended September 30, 2015 is summarized below. There was no valuation allowance for repossessed assets at any time during the three or nine months ended September 30, 2014 . (Dollars in thousands) Valuation allowance For the three months ended September 30, 2015 Beginning balance $ 3,062 Provision for valuation allowance 1,268 Ending Balance $ 4,330 For the nine months ended September 30, 2015 Beginning balance $ 460 Provision for valuation allowance 3,870 Ending Balance $ 4,330 |
Schedule of income and expenses related to other real estate owned | Income and expenses related to other real estate owned and repossessed assets, recorded as a component of “Other expense” in the Consolidated Statements of Income, were as follows: Other real estate owned (Dollars in thousands) Uncovered Covered Total other real estate owned Repossessed assets For the three months ended September 30, 2015 Net gain (loss) on sale $ 2,949 $ 55 $ 3,004 $ (53 ) Write-downs (526 ) (154 ) (680 ) (318 ) Provision for valuation allowance — — — (1,268 ) Net operating expenses (665 ) (67 ) (732 ) (169 ) Total $ 1,758 $ (166 ) $ 1,592 $ (1,808 ) For the nine months ended September 30, 2015 Net gain (loss) on sale $ 6,122 $ (298 ) $ 5,824 $ (93 ) Write-downs (1,837 ) (790 ) (2,627 ) (786 ) Provision for valuation allowance — — — (3,870 ) Net operating expenses (1,555 ) (185 ) (1,740 ) (232 ) Total $ 2,730 $ (1,273 ) $ 1,457 $ (4,981 ) For the three months ended September 30, 2014 Net gain (loss) on sale $ 2,364 $ 63 $ 2,427 $ (4 ) Write-downs (1,361 ) (701 ) (2,062 ) — Net operating expenses (778 ) (60 ) (838 ) (28 ) Total $ 225 $ (698 ) $ (473 ) $ (32 ) For the nine months ended September 30, 2014 Net gain (loss) on sale $ 6,366 $ 294 $ 6,660 $ (8 ) Write-downs (2,861 ) (1,605 ) (4,466 ) — Net operating expenses (2,323 ) (133 ) (2,456 ) (77 ) Total $ 1,182 $ (1,444 ) $ (262 ) $ (85 ) |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of the Company's net carrying amount of CDIs | The table below presents the Company’s net carrying amount of CDIs. (Dollars in thousands) September 30, December 31, Gross carrying amount $ 23,068 $ 20,658 Accumulated amortization (9,598 ) (7,623 ) Net carrying amount $ 13,470 $ 13,035 |
LOAN SERVICING RIGHTS (Tables)
LOAN SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
LOAN SERVICING RIGHTS | |
Schedule of activity for loan servicing rights and the related fair value changes | The following table represents the activity for loan servicing rights and the related fair value changes. (Dollars in thousands) Commercial Real Estate Agricultural Mortgage Total For the three months ended September 30, 2015 Fair value, beginning of period $ 580 $ — $ 58,314 $ 58,894 Additions from loans sold with servicing retained — — 2,759 2,759 Changes in fair value due to: Reductions from loans paid off during the period (44 ) — (1,992 ) (2,036 ) Changes due to valuation inputs or assumptions (1) (27 ) — (3,804 ) (3,831 ) Fair value, end of period $ 509 $ — $ 55,277 $ 55,786 For the nine months ended September 30, 2015 Fair value, beginning of period $ 691 $ — $ 69,907 $ 70,598 Additions from loans sold with servicing retained — — 8,607 8,607 Reduction from loans sold and servicing rights sold (2) — — (12,702 ) (12,702 ) Changes in fair value due to: Reductions from loans paid off during the period (97 ) — (5,851 ) (5,948 ) Changes due to valuation inputs or assumptions (1) (85 ) — (4,684 ) (4,769 ) Fair value, end of period $ 509 $ — $ 55,277 $ 55,786 Principal balance of loans serviced $ 182,450 $ — $ 5,835,058 $ 6,017,508 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 (1) Represents estimated fair value changes primarily due to prepayment speeds and market-driven changes in interest rates. (2) $12.7 million of servicing rights were sold during the nine months ended September 30, 2015 in connection with the sale of $1.2 billion of principal balance of loans serviced. |
Schedule of assumptions included in loan servicing rights | 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, 2015 and December 31, 2014 . Commercial Real Estate Mortgage As of September 30, 2015 Prepayment speed 6.68 - 50.00% 3.62 - 41.76% Weighted average (“WA”) discount rate 19.54 % 9.16 % WA cost to service/per year $ 470 $ 61 WA ancillary income/per year N/A 35 WA float range 0.56 % 1.18 - 1.68% As of December 31, 2014 Prepayment speed 6.41 - 50.00% 3.63 - 40.07% WA discount rate 19.48 % 9.14 % WA cost to service/per year $ 470 $ 61 WA ancillary income/per year N/A 35 WA float range 0.56 % 1.16 - 1.74% |
DERIVATIVE INSTRUMENTS AND BA38
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule reflecting the amount and fair value of risk management derivatives and mortgage banking and customer initiated derivatives | The following table presents the notional amount and fair value of the Company’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and mortgage banking activities. September 30, 2015 December 31, 2014 Fair Value Fair Value (Dollars in thousands) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Notional Amount (1) Gross Derivative Assets (2) Gross Derivative Liabilities (2) Risk management purposes: Derivatives designated as hedging instruments: Interest rate swaps $ 22,000 $ — $ 586 $ 12,000 $ — $ 222 Total risk management purposes 22,000 — 586 12,000 — 222 Customer-initiated and mortgage banking activities: Forward contracts related to mortgage loans to be delivered for sale 165,899 — 1,082 114,828 — 803 Interest rate lock commitments 112,057 2,740 — 67,817 1,489 — Customer-initiated derivatives 317,773 5,650 5,684 125,356 1,588 1,477 Total customer-initiated and mortgage banking activities 595,729 8,390 6,766 308,001 3,077 2,280 Total gross derivatives $ 617,729 $ 8,390 $ 7,352 $ 320,001 $ 3,077 $ 2,502 (1) Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. (2) Derivative assets are included within “Other assets” and derivative liabilities are included within “Other liabilities” on the Consolidated Balance Sheets. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $260 thousand at September 30, 2015 and $103 thousand at December 31, 2014 . |
Schedule reflecting the net gains (losses) relating to derivative instruments related to the changes in fair value | The following table presents the net gains (losses) related to derivative instruments reflecting the changes in fair value. For the three months ended For the the nine months ended (Dollars in thousands) Location of Gain (Loss) 2015 2014 2015 2014 Forward contracts related to mortgage loans to be delivered for sale Net gain on sale of loans $ (3,128 ) $ (463 ) $ (1,917 ) $ (10,372 ) Interest rate lock commitments Net gain on sale of loans 711 (853 ) 1,253 284 Customer-initiated derivatives Other noninterest income 194 4 156 23 Total loss recognized in income $ (2,223 ) $ (1,312 ) $ (508 ) $ (10,065 ) |
Schedule of net gains (losses) recorded in other comprehensive income and consolidated statements of income related to the interest rate swaps | The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and nine months ended September 30, 2015 . We had no interest rate swaps designated as cash flow hedges in the three and nine months ended September 30, 2014 . (Dollars in thousands) Amount of gain (loss) recognized in other comprehensive income (Effective portion) Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion) Amount of gain (loss) recognized in other non interest income (Ineffective portion) For the three months ended September 30, 2015 Interest rate swaps designated as cash flow hedges $ (893 ) $ (104 ) $ — For the nine months ended September 30, 2015 Interest rate swaps designated as cash flow hedges $ (660 ) $ (296 ) $ — |
Schedule of the Company's financial instruments eligible for offset, offsetting assets | The tables below present information about the Company’s financial instruments that are eligible for offset. Gross amounts not offset in the statement of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statement of financial condition Net amounts presented in the statement of financial position Financial instruments Collateral (received)/posted Net Amount September 30, 2015 Offsetting derivative assets Derivative assets $ 5,650 $ — $ 5,650 $ (5,650 ) $ 5,140 $ 5,140 Offsetting derivative liabilities Derivative liabilities 6,270 — 6,270 (5,650 ) 620 — December 31, 2014 Offsetting derivative assets Derivative assets $ 1,588 $ — $ 1,588 $ (1,588 ) $ 1,689 $ 1,689 Offsetting derivative liabilities Derivative liabilities 1,699 — 1,699 (1,588 ) 111 — |
Schedule of the Company's financial instruments eligible for offset, offsetting liabilities | The tables below present information about the Company’s financial instruments that are eligible for offset. Gross amounts not offset in the statement of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statement of financial condition Net amounts presented in the statement of financial position Financial instruments Collateral (received)/posted Net Amount September 30, 2015 Offsetting derivative assets Derivative assets $ 5,650 $ — $ 5,650 $ (5,650 ) $ 5,140 $ 5,140 Offsetting derivative liabilities Derivative liabilities 6,270 — 6,270 (5,650 ) 620 — December 31, 2014 Offsetting derivative assets Derivative assets $ 1,588 $ — $ 1,588 $ (1,588 ) $ 1,689 $ 1,689 Offsetting derivative liabilities Derivative liabilities 1,699 — 1,699 (1,588 ) 111 — |
COMMITMENTS, CONTINGENCIES AN39
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the contractual amounts of the entity's exposure to off-balance sheet risk | A summary of the contractual amounts of the Company’s exposure to off-balance sheet risk is as follows: September 30, 2015 December 31, 2014 (Dollars in thousands) Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Commitments to extend credit $ 578,956 $ 625,114 $ 1,204,070 $ 502,762 $ 463,362 $ 966,124 Standby letters of credit 63,979 3,526 67,505 69,305 4,197 73,502 Total commitments $ 642,935 $ 628,640 $ 1,271,575 $ 572,067 $ 467,559 $ 1,039,626 |
SHORT-TERM BORROWINGS AND LON40
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of 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, 2015 December 31, 2014 (Dollars in thousands) Amount Weighted Average Rate (1) Amount Weighted Average Rate (1) Short-term borrowings: Securities sold under agreements to repurchase: 0.05% - 0.10% variable-rate notes $ 22,090 0.10 % $ 25,743 0.10 % FHLB advances: fixed-rate notes 50,000 0.37 100,000 0.29 FHLB advances: 0.43% variable-rate notes — — 10,000 0.43 Holding company line of credit: floating-rate based on one-month LIBOR plus 3.00% 30,000 3.20 — — Total short-term borrowings 102,090 1.14 135,743 0.26 Long-term debt: FHLB advances: 0.26% - 7.44% fixed-rate notes due 2015 to 2027 (2) 414,405 1.25 286,804 1.57 Securities sold under agreements to repurchase: 4.11% - 4.30% fixed-rate notes due 2016 to 2037 (3) 55,212 4.19 56,444 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) 10,829 2.56 10,724 2.48 Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due in 2032 (5) 4,535 3.53 — — Total long-term debt 484,981 1.64 353,972 2.02 Total short-term borrowings and long-term debt $ 587,071 1.55 % $ 489,715 1.53 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The September 30, 2015 balance includes advances payable of $409.5 million and purchase accounting premiums of $4.9 million . The December 31, 2014 balance includes advances payable of $280.1 million and purchase accounting premiums of $6.7 million . (3) The September 30, 2015 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $5.2 million . The December 31, 2014 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $6.4 million . (4) The September 30, 2015 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.2 million . The December 31, 2014 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.3 million . (5) The September 30, 2015 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $465 thousand . |
Schedule of selected financial information pertaining to the components of short-term borrowings | Selected financial information pertaining to the components of our short-term borrowings is as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2015 2014 2015 2014 Securities sold under agreement to repurchase: Average daily balance $ 25,249 $ 136,707 $ 21,710 $ 97,156 Average interest rate during the period 0.10 % 0.14 % 0.10 % 0.12 % Maximum month-end balance $ 26,703 $ 166,925 $ 26,703 $ 166,925 FHLB advances: Average daily balance $ 164,414 $ 82,935 $ 71,099 $ 40,966 Average interest rate during the period 0.36 % 0.19 % 0.29 % 0.80 % Maximum month-end balance $ 200,000 $ 70,000 $ 200,000 $ 90,000 Federal funds purchased: Average daily balance $ — $ 217 $ 462 $ 1,568 Average interest rate during the period — % 0.31 % 0.31 % 0.27 % Maximum month-end balance $ — $ — $ 126,000 $ — FHLB overnight repurchase agreements: Average daily balance $ — $ — $ — $ 2,931 Average interest rate during the period — % — % — % 0.10 % Maximum month-end balance $ — $ — $ — $ — Holding company line of credit: Average daily balance $ 30,000 $ — $ 20,897 $ 7,436 Average interest rate during the period 3.19 % — % 3.18 % — % Maximum month-end balance $ 30,000 $ — $ 30,000 $ 35,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
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 | A reconciliation of expected income tax expense 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, 2015 2014 2015 2014 (Dollars in thousands) Amount Rate Amount Rate Amount Rate Amount Rate Tax based on federal statutory rate $ 9,261 35.0 % $ 10,297 35.0 % $ 23,121 35.0 % $ 28,823 35.0 % Effect of: Tax exempt income (719 ) (2.7 ) (521 ) (1.8 ) (1,994 ) (3.0 ) (1,723 ) (2.1 ) State taxes, net of federal benefit 329 1.2 666 2.3 789 1.2 1,135 1.4 Change in valuation allowance 2,804 10.6 — — 2,804 4.2 (10,127 ) (12.3 ) Bargain purchase gain — — — — — — (14,692 ) (17.8 ) Transaction costs — — — — 47 0.1 454 0.5 Deferred tax benefit (4,991 ) (18.9 ) — — (4,991 ) (7.6 ) — — Other, net (259 ) (0.9 ) (538 ) (1.8 ) (731 ) (1.1 ) 132 0.2 Income tax expense $ 6,425 24.3 % $ 9,904 33.7 % $ 19,045 28.8 % $ 4,002 4.9 % |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based payment award, valuation assumptions | The fair value of options granted during the nine months ended September 30, 2014 was determined using the following weighted-average assumptions as of the grant date. For the nine months ended September 30, 2014 Fair value of options granted $ 4.77 Expected dividend yield — % Expected volatility 30.02 % Risk-free interest rate 1.98 % Expected life (in years) 6.00 |
Summary of activity in the Plan | Activity in the Plan during the nine months ended September 30, 2015 is summarized below: Weighted average Number of shares (in thousands) Exercise price per share Remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at January 1, 2015 7,958 $ 6.96 Exercised (1) (723 ) 6.85 Outstanding at September 30, 2015 7,235 6.97 5.96 70,039 Options fully vested 7,235 6.97 5.96 70,039 Exercisable at September 30, 2015 7,235 6.97 5.96 70,039 (1) Options exercised during the nine months ended September 30, 2015 had a weighted average fair value of $15.89 , at respective exercise dates. |
Summary of changes in the Company's nonvested shares | The following table provides information regarding nonvested restricted stock awards: Nonvested restricted stock awards Shares (in thousands) Weighted-average grant-date fair value Nonvested at January 1, 2015 378 $ 14.44 Granted 391 15.10 Vested (19 ) 14.44 Forfeited (11 ) 14.95 Nonvested at September 30, 2015 739 $ 14.78 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
Summary of actual and required capital amounts and ratios | The following is a summary of actual and required capital amounts and ratios in accordance with current regulatory standards: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2015 (Basel III Transitional) Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 714,836 13.2 % $ 433,301 8.0 % N/A N/A Talmer Bank and Trust 734,680 13.6 432,614 8.0 $ 540,768 10.0 % Common equity tier 1 capital Talmer Bancorp, Inc. (Consolidated) 656,214 12.1 243,732 4.5 N/A N/A Talmer Bank and Trust 676,058 12.5 243,345 4.5 351,499 6.5 Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 656,214 12.1 324,976 6.0 N/A N/A Talmer Bank and Trust 676,058 12.5 324,461 6.0 432,614 8.0 Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 656,214 10.2 256,989 4.0 N/A N/A Talmer Bank and Trust 676,058 11.3 239,862 4.0 299,827 5.0 December 31, 2014 (Basel I) Total capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) $ 720,552 16.4 % $ 350,645 8.0 % N/A N/A Talmer Bank and Trust 627,851 16.3 308,374 8.0 $ 385,468 10.0 % Talmer West Bank (1) 101,926 19.6 41,628 8.0 N/A N/A Tier 1 capital to risk-weighted assets Talmer Bancorp, Inc. (Consolidated) 666,035 15.2 175,323 4.0 N/A N/A Talmer Bank and Trust 579,604 15.0 154,187 4.0 231,281 6.0 Talmer West Bank (1) 95,656 18.4 20,814 4.0 N/A N/A Tier 1 leverage ratio Talmer Bancorp, Inc. (Consolidated) 666,035 11.6 230,546 4.0 N/A N/A Talmer Bank and Trust 579,604 11.6 200,128 4.0 250,160 5.0 Talmer West Bank (1) 95,656 12.4 30,786 4.0 N/A N/A (1) Notwithstanding its capital levels, Talmer West Bank was not categorized as well capitalized while it was subject to the Consent Order. On August 21, 2015, Talmer West Bank was merged with and into Talmer Bank and Trust. |
PARENT COMPANY FINANCIAL STAT44
PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Balance Sheets - Parent Company (Dollars in thousands) September 30, December 31, Assets Cash and cash equivalents $ 11,745 $ 9,497 Investment in banking subsidiaries 738,327 756,452 Income tax benefit 9,739 7,975 Other assets 1,331 655 Total assets $ 761,142 $ 774,579 Liabilities Short-term borrowings $ 30,000 $ — Long-term debt 15,364 10,724 Accrued expenses and other liabilities 1,010 2,248 Total liabilities 46,374 12,972 Shareholders’ equity 714,768 761,607 Total liabilities and shareholders’ equity $ 761,142 $ 774,579 |
Statements of Income | Statements of Income and Comprehensive Income - Parent Company For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2015 2014 2015 2014 Income Dividend income from subsidiary $ 80,000 $ — $ 95,000 $ 25,000 Bargain purchase gain — — — 41,977 Other noninterest income 34 3 43 8 Total income 80,034 3 95,043 66,985 Expenses Salaries and employee benefits 1,602 1,040 4,494 6,995 Bank acquisition and due diligence fees 88 238 1,243 2,212 Professional service fees 740 455 1,608 1,541 Insurance expense 85 176 198 543 Marketing expense 29 31 78 222 Interest on short-term borrowings 247 — 508 151 Interest on long-term debt 184 128 528 380 Other 35 74 208 222 Total expenses 3,010 2,142 8,865 12,266 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries 77,024 (2,139 ) 86,178 54,719 Income tax benefit 1,000 533 2,735 2,990 Equity in (over)/under distributed earnings of subsidiaries (57,989 ) 21,121 (41,897 ) 20,639 Net income $ 20,035 $ 19,515 $ 47,016 $ 78,348 Total comprehensive income, net of tax $ 23,601 $ 19,369 $ 48,968 $ 88,431 |
Statements of Cash Flows | Statements of Cash Flows - Parent Company For the nine months ended September 30, (Dollars in thousands) 2015 2014 Cash flows from operating activities Net income $ 47,016 $ 78,348 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries 41,897 (20,639 ) Gain on acquisition — (41,977 ) Stock-based compensation expense 604 382 (Increase) decrease in income tax benefit (1,381 ) 11 (Increase) decrease in other assets, net (482 ) 551 Decrease in accrued expenses and other liabilities, net (3,620 ) (3,081 ) Net cash from operating activities 84,034 13,595 Cash flows from investing activities Cash (used in) proceeds from acquisitions (13,323 ) (6,500 ) Capital contributions to subsidiaries — (99,500 ) Refund of investment 2,225 — Net cash used in investing activities (11,098 ) (106,000 ) Cash flows from financing activities Issuance of common stock — 42,075 Issuance of common stock and restricted stock awards, including tax benefit (182 ) (963 ) Repurchase of 5.1 million common shares (74,987 ) — Repurchase of warrants to purchase 2.5 million shares, at fair value (19,892 ) — Cash dividends paid on common stock (1) (2,127 ) (704 ) Draw on senior unsecured line of credit 30,000 — Repayment of senior unsecured line of credit — (35,000 ) Repayment of long-term debt (3,500 ) — Net cash from financing activities (70,688 ) 5,408 Net increase (decrease) in cash and cash equivalents 2,248 (86,997 ) Beginning cash and cash equivalents 9,497 98,411 Ending cash and cash equivalents $ 11,745 $ 11,414 (1) $0.03 per share and $0.01 per share for the nine months ended September 30, 2015 and 2014, respectively. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of factors used in the basic and diluted earnings per share ("EPS") computation | The factors used in the earnings per share computation follow: For the three months ended For the nine months ended (In thousands, except per share data) 2015 2014 2015 2014 Net income $ 20,035 $ 19,515 $ 47,016 $ 78,348 Net income allocated to participating securities 207 105 407 178 Net income allocated to common shareholders (1) $ 19,828 $ 19,410 $ 46,609 $ 78,170 Weighted average common shares - issued 69,449 70,470 70,354 69,570 Average unvested restricted share awards (718 ) (378 ) (610 ) (156 ) Weighted average common shares outstanding - basic 68,731 70,092 69,744 69,414 Effect of dilutive securities - Employee and director stock options 4,227 4,102 4,201 4,034 Warrants 264 1,558 502 1,500 Weighted average common shares outstanding - diluted 73,222 75,752 74,447 74,948 EPS available to common shareholders Basic $ 0.29 $ 0.28 $ 0.67 $ 1.13 Diluted $ 0.27 $ 0.26 $ 0.63 $ 1.04 (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 | 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 because they were antidilutive. There were no outstanding antidilutive warrants or options during the three and nine months ended September 30, 2015 and no outstanding antidilutive warrants during the three and nine months ended September 30, 2014 . (Shares in thousands) For the three months ended For the nine months ended Average outstanding options 35 14 Outstanding exercise prices: Low end $ 14.44 $ 14.44 High end $ 14.44 $ 14.44 |
ACCUMULATED OTHER COMPREHENSI46
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows: (Dollars in thousands) Unrealized gains (losses) on securities available-for-sale, net of tax Unrealized gains (losses) on cash flow hedges, net of tax Total unrealized gains (losses), net of tax Three months ended September 30, 2015 Beginning balance $ 2,105 $ 131 $ 2,236 Other comprehensive income (loss) before reclassifications 4,210 (581 ) 3,629 Amounts reclassified from accumulated other comprehensive income (131 ) (1) 68 (2) (63 ) Net current period other comprehensive income (loss) 4,079 (513 ) 3,566 Ending balance $ 6,184 $ (382 ) $ 5,802 Three months ended September 30, 2014 Beginning balance $ 2,233 $ — $ 2,233 Other comprehensive income before reclassifications 13 — 13 Amounts reclassified from accumulated other comprehensive income (159 ) (1) — (159 ) Net current period other comprehensive loss (146 ) — (146 ) Ending balance $ 2,087 $ — $ 2,087 Nine months ended September 30, 2015 Beginning balance $ 3,995 $ (145 ) $ 3,850 Other comprehensive income (loss) before reclassifications 2,255 (429 ) 1,826 Amounts reclassified from accumulated other comprehensive income (66 ) (1) 192 (2) 126 Net current period other comprehensive income (loss) 2,189 (237 ) 1,952 Ending balance $ 6,184 $ (382 ) $ 5,802 Nine months ended September 30, 2014 Beginning balance $ (7,996 ) $ — $ (7,996 ) Other comprehensive income before reclassifications 8,740 8,740 Amounts reclassified from accumulated other comprehensive income 1,343 (1) 1,343 Net current period other comprehensive income 10,083 — 10,083 Ending balance $ 2,087 $ — $ 2,087 (1) Amounts are included in “Net gain (loss) on sales of securities” in the Consolidated Statements of Income within total noninterest income, calculated using the specific identification method, and were net gains of $202 thousand and $ 244 thousand for the three months ended September 30, 2015 and 2014, respectively, and net gains of $ 101 thousand and net losses of $2.1 million for the nine months ended September 30, 2015 and 2014 , respectively. Income tax provision (benefit) associated with the reclassification adjustments for three months ended September 30, 2015 and 2014 was an expense of $ 71 thousand and $85 thousand , respectively, and for the nine months ended ended September 30, 2015 and 2014 was an expense of $ 35 thousand and a benefit of $723 thousand , respectively, and are included in “Income tax provision” in the Consolidated Statements of Income. (2) Amount is included in “Other brokered funds” in the Consolidated Statements of Income within total interest expense and was $104 thousand for the three months ended September 30, 2015 , and $ 296 thousand for the nine months ended September 30, 2015 . Income tax benefit associated with the reclassification adjustment for the three months ended September 30, 2015 was $36 thousand , and for the nine months ended September 30, 2015 was $ 104 thousand and included in “Income tax provision” in the Consolidated Statements of Income. |
BASIS OF PRESENTATION AND REC47
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 31, 2015 | Sep. 30, 2015 | Feb. 17, 2015 | Dec. 27, 2012 | Feb. 21, 2012 | Apr. 30, 2010 |
Aggregate purchase price | $ 74,987 | |||||
Class A Voting Common Stock | ||||||
Purchase price per share (usd per share) | $ 14.77 | |||||
Aggregate purchase price | $ 74,987 | |||||
Class A Voting Common Stock | WL Ross Funds | ||||||
Number of shares repurchased (in shares) | 5,077,000 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 9,664,579 | |||||
Stock warrants issued in relation to April 2010 capital raise from private equity investors | ||||||
Warrants issued (in shares) | 1,623,162 | |||||
Stock warrants issued in relation to February 2012 capital raise from private equity investors | ||||||
Warrants issued (in shares) | 109,122 | |||||
Stock warrants issued in relation to December 2012 capital raise from private equity investors | ||||||
Warrants issued (in shares) | 797,132 | |||||
Warrants repurchase | ||||||
Number of warrants repurchased | 2,529,416 | |||||
Aggregate purchase price of warrants repurchased | $ 19,900 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) $ in Thousands | Feb. 06, 2015USD ($) | Jan. 01, 2014USD ($)location | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) |
Fair value of liabilities assumed: | |||||||||
Goodwill | $ 3,524 | $ 3,524 | $ 0 | ||||||
Bargain purchase gain resulting from acquisition | 0 | $ 0 | 0 | $ 41,977 | |||||
Accounted for under ASC 310-30 | |||||||||
Information regarding acquired loans | |||||||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 223,770 | 223,770 | 259,519 | ||||||
Expected cash flows | 1,085,498 | 1,085,498 | 1,281,482 | ||||||
Interest component of expected cash flows (accretable yield) | 242,065 | $ 242,065 | $ 277,058 | ||||||
Core deposit | |||||||||
Fair value of liabilities assumed: | |||||||||
Estimated life of asset | 6 years 10 months 24 days | ||||||||
FHC | |||||||||
BUSINESS COMBINATIONS | |||||||||
Cash consideration | $ 13,395 | ||||||||
Subordinated notes assumed, retired immediately | 3,500 | ||||||||
Interest assumed from subordinated notes and retired | 1,400 | ||||||||
Interest assumed from Trust Preferred Securities and retired | 876 | ||||||||
Acquisition related expenses | 1 | $ 1,200 | |||||||
Deferred tax assets, valuation allowance | 4,800 | ||||||||
Net deferred tax assets at acquisition | 4,800 | ||||||||
Consideration paid: | |||||||||
Cash | 13,395 | ||||||||
Fair value of identifiable assets acquired: | |||||||||
Cash and cash equivalents | 14,205 | ||||||||
Investment securities | 34,022 | ||||||||
Federal home loan bank stock | 874 | ||||||||
Loans | 162,265 | ||||||||
Premises and equipment | 2,077 | ||||||||
Company-owned life insurance | 4,719 | ||||||||
Other real estate owned and repossessed assets | 1,260 | ||||||||
Core deposit intangible | 2,410 | ||||||||
Other assets | 6,462 | ||||||||
Total identifiable assets acquired | 228,294 | ||||||||
Fair value of liabilities assumed: | |||||||||
Deposits | 201,453 | ||||||||
Long-term debt | 13,086 | ||||||||
Other liabilities | 3,884 | ||||||||
Total liabilities assumed | 218,423 | ||||||||
Fair value of net identifiable assets acquired | 9,871 | ||||||||
Goodwill | 3,524 | 3,500 | $ 3,500 | ||||||
Information regarding acquired loans | |||||||||
Fair value at acquisition | 162,265 | ||||||||
FHC | Maximum | |||||||||
BUSINESS COMBINATIONS | |||||||||
Net operating loss and tax credit carry forwards that can be used annually | 366 | ||||||||
FHC | Federal | |||||||||
BUSINESS COMBINATIONS | |||||||||
Net operating loss carryforwards | 1,700 | ||||||||
Alternative minimum tax credits | 303 | ||||||||
Valuation allowance | 0 | ||||||||
FHC | Accounted for under ASC 310-30 | |||||||||
Information regarding acquired loans | |||||||||
Contractual cash flows | 53,807 | ||||||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 8,084 | ||||||||
Expected cash flows | 45,723 | ||||||||
Interest component of expected cash flows (accretable yield) | 5,268 | ||||||||
Fair value at acquisition | 40,455 | ||||||||
FHC | Excluded from ASC 310-30 accounting | |||||||||
Information regarding acquired loans | |||||||||
Unpaid principal balance | 124,538 | ||||||||
Fair value discount | (2,728) | ||||||||
Fair value at acquisition | $ 121,810 | ||||||||
FHC | Core deposit | |||||||||
Fair value of liabilities assumed: | |||||||||
Estimated life of asset | 10 years | ||||||||
Financial Commerce Corporation's wholly-owned subsidiary banks and Capital Bancorp Ltd. | |||||||||
BUSINESS COMBINATIONS | |||||||||
Cash consideration | $ 4,000 | ||||||||
Consideration paid: | |||||||||
Cash | 4,000 | ||||||||
Fair value of liabilities assumed: | |||||||||
Payment to fund escrow account | $ 2,500 | ||||||||
Percentage of capital stock purchased | 100.00% | ||||||||
Talmer West Bank | |||||||||
BUSINESS COMBINATIONS | |||||||||
Cash consideration | $ 6,500 | ||||||||
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 | 6,540 | ||||||||
Loan servicing rights | 767 | ||||||||
Other real estate owned and repossessed assets | 30,878 | ||||||||
Other assets | 62,542 | ||||||||
Total identifiable assets acquired | 911,909 | ||||||||
Fair value of liabilities assumed: | |||||||||
Deposits | 857,769 | ||||||||
Other liabilities | 5,663 | ||||||||
Total liabilities assumed | 863,432 | ||||||||
Fair value of net identifiable assets acquired | 48,477 | ||||||||
Bargain purchase gain resulting from acquisition | $ 41,977 | ||||||||
Additional capital contributed in order to recapitalize | $ 99,500 | ||||||||
Acquisition related expenses | $ 35 | $ 673 | $ 1,800 | ||||||
Number of branches acquired that are within the entity's target market areas | location | 12 | ||||||||
Percentage of branches acquired that are within the entity's target market areas | 70.00% | ||||||||
Information regarding acquired loans | |||||||||
Fair value at acquisition | $ 571,666 | ||||||||
Talmer West Bank | Senior unsecured line of credit | |||||||||
Fair value of liabilities assumed: | |||||||||
Amount borrowed | $ 35,000 | ||||||||
Amount of net proceeds from the initial public offering used for repayment of debt | $ 35,000 | ||||||||
Talmer West Bank | Accounted for under ASC 310-30 | |||||||||
Information regarding acquired loans | |||||||||
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 | ||||||||
Talmer West Bank | Excluded from ASC 310-30 accounting | |||||||||
Information regarding acquired loans | |||||||||
Unpaid principal balance | 362,782 | ||||||||
Fair value discount | (3,465) | ||||||||
Fair value at acquisition | 359,317 | ||||||||
Talmer West Bank | Core deposit | |||||||||
Fair value of identifiable assets acquired: | |||||||||
Core deposit intangible | $ 3,633 |
FAIR VALUE (Details)
FAIR VALUE (Details) | 9 Months Ended |
Sep. 30, 2015 | |
General disclosure on fair value | |
Percentage of available for sale securities that are categorized as Level 3 | 1.00% |
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) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Period of expected receipt of payment for FDIC receivable | 90 days |
FAIR VALUE (Details 3)
FAIR VALUE (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value | ||||||
Securities available-for-sale | $ 880,705 | $ 740,819 | ||||
Loans held for sale | 100,255 | 93,453 | ||||
Loan servicing rights | 55,786 | $ 58,894 | 70,598 | $ 74,380 | $ 74,104 | $ 78,603 |
U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 99,100 | 98,358 | ||||
Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 318 | 397 | ||||
Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 277,731 | 232,259 | ||||
SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 30,413 | 33,933 | ||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 307,355 | 291,759 | ||||
Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 58,197 | 18,800 | ||||
Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 19,142 | 5,130 | ||||
Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 88,449 | 60,183 | ||||
Recurring basis | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 0 | |||||
Recurring basis | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | |||||
Recurring basis | Level 1 | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Loans held for sale | 0 | 0 | ||||
Loan servicing rights | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||
Total assets at fair value | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Total liabilities at fair value | 0 | 0 | ||||
Recurring basis | Level 1 | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 0 | |||||
Recurring basis | Level 1 | Interest rate lock commitments | ||||||
Fair Value | ||||||
Derivative assets | 0 | 0 | ||||
Recurring basis | Level 1 | Customer-initiated derivatives | ||||||
Fair Value | ||||||
Derivative assets | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 1 | Risk management derivatives | ||||||
Fair Value | ||||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 1 | Residential real estate | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 0 | 0 | ||||
Recurring basis | Level 1 | Real estate construction | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 0 | |||||
Recurring basis | Level 1 | U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | |||||
Recurring basis | Level 1 | SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 2 | ||||||
Fair Value | ||||||
Securities available-for-sale | 879,957 | 736,997 | ||||
Loans held for sale | 100,255 | 93,453 | ||||
Loan servicing rights | 0 | 0 | ||||
Derivative assets | 8,390 | 3,077 | ||||
Total assets at fair value | 988,602 | 833,527 | ||||
Derivative liabilities | 7,352 | 2,502 | ||||
Total liabilities at fair value | 7,352 | 2,502 | ||||
Recurring basis | Level 2 | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 1,082 | 803 | ||||
Recurring basis | Level 2 | Interest rate lock commitments | ||||||
Fair Value | ||||||
Derivative assets | 2,740 | 1,489 | ||||
Recurring basis | Level 2 | Customer-initiated derivatives | ||||||
Fair Value | ||||||
Derivative assets | 5,650 | 1,588 | ||||
Derivative liabilities | 5,684 | 1,477 | ||||
Recurring basis | Level 2 | Risk management derivatives | ||||||
Fair Value | ||||||
Derivative liabilities | 586 | 222 | ||||
Recurring basis | Level 2 | Residential real estate | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 0 | 0 | ||||
Recurring basis | Level 2 | Real estate construction | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 0 | |||||
Recurring basis | Level 2 | U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 99,100 | 98,358 | ||||
Recurring basis | Level 2 | Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 2 | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 277,731 | 232,259 | ||||
Recurring basis | Level 2 | SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 30,413 | 33,933 | ||||
Recurring basis | Level 2 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 307,355 | 291,759 | ||||
Recurring basis | Level 2 | Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 58,197 | 18,800 | ||||
Recurring basis | Level 2 | Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 19,142 | 5,130 | ||||
Recurring basis | Level 2 | Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 88,019 | 56,758 | ||||
Recurring basis | Level 3 | ||||||
Fair Value | ||||||
Securities available-for-sale | 748 | 3,822 | ||||
Loans held for sale | 0 | 0 | ||||
Loan servicing rights | 55,786 | 70,598 | ||||
Derivative assets | 0 | 0 | ||||
Total assets at fair value | 77,431 | 93,946 | ||||
Derivative liabilities | 0 | 0 | ||||
Total liabilities at fair value | 0 | 0 | ||||
Recurring basis | Level 3 | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 3 | Interest rate lock commitments | ||||||
Fair Value | ||||||
Derivative assets | 0 | 0 | ||||
Recurring basis | Level 3 | Customer-initiated derivatives | ||||||
Fair Value | ||||||
Derivative assets | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 3 | Risk management derivatives | ||||||
Fair Value | ||||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 3 | Residential real estate | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 20,897 | 18,311 | ||||
Recurring basis | Level 3 | Real estate construction | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 1,215 | |||||
Recurring basis | Level 3 | U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 318 | 397 | ||||
Recurring basis | Level 3 | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 430 | 3,425 | ||||
Recurring basis | Total Fair Value | ||||||
Fair Value | ||||||
Securities available-for-sale | 880,705 | 740,819 | ||||
Loans held for sale | 100,255 | 93,453 | ||||
Loan servicing rights | 55,786 | 70,598 | ||||
Derivative assets | 8,390 | 3,077 | ||||
Total assets at fair value | 1,066,033 | 927,473 | ||||
Derivative liabilities | 7,352 | 2,502 | ||||
Total liabilities at fair value | 7,352 | 2,502 | ||||
Recurring basis | Total Fair Value | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 1,082 | 803 | ||||
Recurring basis | Total Fair Value | Interest rate lock commitments | ||||||
Fair Value | ||||||
Derivative assets | 2,740 | 1,489 | ||||
Recurring basis | Total Fair Value | Customer-initiated derivatives | ||||||
Fair Value | ||||||
Derivative assets | 5,650 | 1,588 | ||||
Derivative liabilities | 5,684 | 1,477 | ||||
Recurring basis | Total Fair Value | Risk management derivatives | ||||||
Fair Value | ||||||
Derivative liabilities | 586 | 222 | ||||
Recurring basis | Total Fair Value | Residential real estate | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 20,897 | 18,311 | ||||
Recurring basis | Total Fair Value | Real estate construction | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 1,215 | |||||
Recurring basis | Total Fair Value | U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 99,100 | 98,358 | ||||
Recurring basis | Total Fair Value | Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 318 | 397 | ||||
Recurring basis | Total Fair Value | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 277,731 | 232,259 | ||||
Recurring basis | Total Fair Value | SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 30,413 | 33,933 | ||||
Recurring basis | Total Fair Value | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 307,355 | 291,759 | ||||
Recurring basis | Total Fair Value | Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 58,197 | 18,800 | ||||
Recurring basis | Total Fair Value | Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 19,142 | 5,130 | ||||
Recurring basis | Total Fair Value | Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | $ 88,449 | $ 60,183 |
FAIR VALUE (Details 4)
FAIR VALUE (Details 4) - Recurring basis - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Loans held for investment | ||||
Changes in Level 3 assets during period | ||||
Balance, beginning of period | $ 20,907 | $ 18,521 | $ 19,526 | $ 17,708 |
Transfer between levels within fair value hierarchy | 0 | |||
Additions due to acquisition | 0 | |||
Transfers from loans held for sale | 280 | 3,983 | 1,058 | |
Recorded in OCI (pre-tax) | 0 | 0 | 0 | 0 |
New originations | 0 | 0 | 0 | 0 |
Reduction from servicing rights sold | 0 | |||
Repayments | (246) | (827) | (2,748) | (1,395) |
Draws on previously issued lines of credits | 128 | |||
Balance, end of period | 20,897 | 17,881 | 20,897 | 17,881 |
Loans held for investment | Interest on investments | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | 0 | 0 |
Loans held for investment | Net gain on sales of loans | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 139 | 8 | ||
Loans held for investment | Mortgage banking and other loan fees | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 236 | (93) | (3) | 374 |
Loan servicing rights | ||||
Changes in Level 3 assets during period | ||||
Balance, beginning of period | 58,894 | 74,104 | 70,598 | 78,603 |
Transfer between levels within fair value hierarchy | 0 | |||
Additions due to acquisition | 767 | |||
Transfers from loans held for sale | 0 | 0 | 0 | |
Recorded in OCI (pre-tax) | 0 | 0 | 0 | 0 |
New originations | 2,759 | 2,298 | 8,607 | 6,046 |
Reduction from servicing rights sold | (12,702) | |||
Repayments | 0 | 0 | 0 | 0 |
Draws on previously issued lines of credits | 0 | |||
Balance, end of period | 55,786 | 74,380 | 55,786 | 74,380 |
Loan servicing rights | Interest on investments | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | 0 | 0 |
Loan servicing rights | Net gain on sales of loans | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | ||
Loan servicing rights | Mortgage banking and other loan fees | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | (5,867) | (2,022) | (10,717) | (11,036) |
Taxable | ||||
Changes in Level 3 assets during period | ||||
Balance, beginning of period | 318 | 397 | 397 | 396 |
Transfer between levels within fair value hierarchy | 0 | |||
Additions due to acquisition | 0 | |||
Transfers from loans held for sale | 0 | 0 | 0 | |
Recorded in OCI (pre-tax) | 0 | 0 | 0 | 0 |
New originations | 0 | 0 | 0 | 0 |
Reduction from servicing rights sold | 0 | |||
Repayments | 0 | 0 | (80) | 0 |
Draws on previously issued lines of credits | 0 | |||
Balance, end of period | 318 | 397 | 318 | 397 |
Taxable | Interest on investments | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | 1 | 1 |
Taxable | Net gain on sales of loans | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | ||
Taxable | Mortgage banking and other loan fees | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | 0 | 0 |
Corporate debt securities | ||||
Changes in Level 3 assets during period | ||||
Balance, beginning of period | 448 | 433 | 3,425 | 405 |
Transfer between levels within fair value hierarchy | (3,000) | |||
Additions due to acquisition | 0 | |||
Transfers from loans held for sale | 0 | 0 | 0 | |
Recorded in OCI (pre-tax) | (19) | 1 | 2 | 27 |
New originations | 0 | 0 | 0 | 0 |
Reduction from servicing rights sold | 0 | |||
Repayments | 0 | 0 | 0 | 0 |
Draws on previously issued lines of credits | 0 | |||
Balance, end of period | 430 | 435 | 430 | 435 |
Corporate debt securities | Interest on investments | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 1 | 1 | 3 | 3 |
Corporate debt securities | Net gain on sales of loans | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | ||
Corporate debt securities | Mortgage banking and other loan fees | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE (Details 5)
FAIR VALUE (Details 5) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Loans held for investment measured and recorded at fair value | |||||
Aggregate fair value | $ 20,897,000 | $ 20,897,000 | $ 19,526,000 | ||
Contractual balance | 20,335,000 | 20,335,000 | 19,100,000 | ||
Fair market value gain | 562,000 | 426,000 | |||
Gains (losses) from changes in fair value included in earnings | 0 | ||||
Aggregate fair value of loans held for investment that are 90 days or more past due | 140,000 | 140,000 | 155,000 | ||
Contractual principal balance of loans held for investment that are 90 days or more past due | 238,000 | 238,000 | 191,000 | ||
Nonaccrual status of loans that were 90 days or more past due | 140,000 | 140,000 | $ 155,000 | ||
Interest income earned on loans transferred from loans held for sale to loans held for investment | $ 197,000 | $ 164,000 | $ 610,000 | $ 423,000 |
FAIR VALUE (Details 6)
FAIR VALUE (Details 6) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gains/(losses) from changes in fair value included in earnings | $ 0 | |||
Loans held for sale | ||||
Gains/(losses) from changes in fair value included in earnings | $ 283,000 | $ (1,935,000) | (841,000) | $ 2,899,000 |
Net gain on sales of loans | Loans held for investment | ||||
Gains/(losses) from changes in fair value included in earnings | 0 | 0 | 139,000 | 8,000 |
Mortgage banking and other loan fees | Loans held for investment | ||||
Gains/(losses) from changes in fair value included in earnings | $ 236,000 | $ (93,000) | $ (3,000) | $ 374,000 |
FAIR VALUE (Details 7)
FAIR VALUE (Details 7) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Other information with respect to fair value | ||
Loans held for sale that are 90 days past due or on nonaccrual | $ 0 | $ 0 |
Aggregate fair value | 100,255,000 | 93,453,000 |
Contractual balance | 96,781,000 | 89,138,000 |
Unrealized gain | $ 3,474,000 | $ 4,315,000 |
FAIR VALUE (Details 8)
FAIR VALUE (Details 8) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other real estate owned | ||||||
Total OREO | $ 27,716,000 | $ 44,940,000 | $ 27,716,000 | $ 44,940,000 | $ 38,908,000 | $ 29,955,000 |
Non-recurring basis | ||||||
Impaired loans | ||||||
Specific reserves for impaired loans, nonrecurring | 2,000,000 | 2,000,000 | 2,900,000 | |||
Charge-offs for impaired loans, nonrecurring | 81,000 | 633,000 | 91,000 | 1,300,000 | ||
Amount charged through other non-interest expense to reduce the fair value of other real estate | 318,000 | 0 | 786,000 | 0 | ||
Valuation allowance to reduce the fair value of repossessed assets | 4,300,000 | 460,000 | ||||
Amount charged through other noninterest expenses on premises and equipment | 0 | 185,000 | 1,100,000 | 185,000 | ||
Non-recurring basis | Level 1 | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Other real estate owned | ||||||
Repossessed assets | 0 | 0 | 0 | |||
Premises and equipment: | 0 | 0 | 0 | |||
Total assets at fair value | 0 | 0 | 0 | |||
Non-recurring basis | Level 2 | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Other real estate owned | ||||||
Repossessed assets | 0 | 0 | 0 | |||
Premises and equipment: | 0 | 0 | 0 | |||
Total assets at fair value | 0 | 0 | 0 | |||
Non-recurring basis | Level 3 | ||||||
Fair Value | ||||||
Impaired loans | 6,008,000 | 6,008,000 | 8,106,000 | |||
Other real estate owned | ||||||
Repossessed assets | 5,514,000 | 5,514,000 | 9,654,000 | |||
Premises and equipment: | 1,575,000 | 1,575,000 | 675,000 | |||
Total assets at fair value | 17,414,000 | 17,414,000 | 31,912,000 | |||
Non-recurring basis | Uncovered | ||||||
Impaired loans | ||||||
Amount charged through other non-interest expense to reduce the fair value of other real estate | 526,000 | 1,400,000 | 1,800,000 | 2,900,000 | ||
Non-recurring basis | Uncovered | Level 1 | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Other real estate owned | ||||||
Total OREO | 0 | 0 | 0 | |||
Non-recurring basis | Uncovered | Level 1 | Residential real estate | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Uncovered | Level 1 | Commercial real estate | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Uncovered | Level 1 | Commercial and industrial | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Uncovered | Level 1 | Consumer | ||||||
Fair Value | ||||||
Impaired loans | 0 | |||||
Non-recurring basis | Uncovered | Level 2 | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Other real estate owned | ||||||
Total OREO | 0 | 0 | 0 | |||
Non-recurring basis | Uncovered | Level 2 | Residential real estate | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Uncovered | Level 2 | Commercial real estate | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Uncovered | Level 2 | Commercial and industrial | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Uncovered | Level 2 | Consumer | ||||||
Fair Value | ||||||
Impaired loans | 0 | |||||
Non-recurring basis | Uncovered | Level 3 | ||||||
Fair Value | ||||||
Impaired loans | 5,671,000 | 5,671,000 | 7,604,000 | |||
Other real estate owned | ||||||
Total OREO | 3,235,000 | 3,235,000 | 9,670,000 | |||
Non-recurring basis | Uncovered | Level 3 | Residential real estate | ||||||
Fair Value | ||||||
Impaired loans | 2,569,000 | 2,569,000 | 2,898,000 | |||
Non-recurring basis | Uncovered | Level 3 | Commercial real estate | ||||||
Fair Value | ||||||
Impaired loans | 463,000 | 463,000 | 4,115,000 | |||
Non-recurring basis | Uncovered | Level 3 | Commercial and industrial | ||||||
Fair Value | ||||||
Impaired loans | 2,639,000 | 2,639,000 | 579,000 | |||
Non-recurring basis | Uncovered | Level 3 | Consumer | ||||||
Fair Value | ||||||
Impaired loans | 12,000 | |||||
Non-recurring basis | Covered | ||||||
Impaired loans | ||||||
Valuation allowance to reduce the fair value of repossessed assets | 154,000 | $ 701,000 | 790,000 | $ 1,600,000 | ||
Non-recurring basis | Covered | Level 1 | ||||||
Other real estate owned | ||||||
Total OREO | 0 | 0 | 0 | |||
Non-recurring basis | Covered | Level 1 | Residential real estate | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Covered | Level 1 | Commercial real estate | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | ||||
Non-recurring basis | Covered | Level 1 | Commercial and industrial | ||||||
Fair Value | ||||||
Impaired loans | 0 | |||||
Non-recurring basis | Covered | Level 2 | ||||||
Other real estate owned | ||||||
Total OREO | 0 | 0 | 0 | |||
Non-recurring basis | Covered | Level 2 | Residential real estate | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Covered | Level 2 | Commercial real estate | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | ||||
Non-recurring basis | Covered | Level 2 | Commercial and industrial | ||||||
Fair Value | ||||||
Impaired loans | 0 | |||||
Non-recurring basis | Covered | Level 3 | ||||||
Other real estate owned | ||||||
Total OREO | 1,082,000 | 1,082,000 | 3,807,000 | |||
Non-recurring basis | Covered | Level 3 | Residential real estate | ||||||
Fair Value | ||||||
Impaired loans | 212,000 | 212,000 | 152,000 | |||
Non-recurring basis | Covered | Level 3 | Commercial real estate | ||||||
Fair Value | ||||||
Impaired loans | 125,000 | 125,000 | ||||
Non-recurring basis | Covered | Level 3 | Commercial and industrial | ||||||
Fair Value | ||||||
Impaired loans | 350,000 | |||||
Non-recurring basis | Total covered | Level 1 | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Total covered | Level 2 | ||||||
Fair Value | ||||||
Impaired loans | 0 | 0 | 0 | |||
Non-recurring basis | Total covered | Level 3 | ||||||
Fair Value | ||||||
Impaired loans | 337,000 | 337,000 | 502,000 | |||
Total Fair Value | Non-recurring basis | ||||||
Fair Value | ||||||
Impaired loans | 6,008,000 | 6,008,000 | 8,106,000 | |||
Other real estate owned | ||||||
Repossessed assets | 5,514,000 | 5,514,000 | 9,654,000 | |||
Premises and equipment: | 1,575,000 | 1,575,000 | 675,000 | |||
Total assets at fair value | 17,414,000 | 17,414,000 | 31,912,000 | |||
Total Fair Value | Non-recurring basis | Uncovered | ||||||
Fair Value | ||||||
Impaired loans | 5,671,000 | 5,671,000 | 7,604,000 | |||
Other real estate owned | ||||||
Total OREO | 3,235,000 | 3,235,000 | 9,670,000 | |||
Total Fair Value | Non-recurring basis | Uncovered | Residential real estate | ||||||
Fair Value | ||||||
Impaired loans | 2,569,000 | 2,569,000 | 2,898,000 | |||
Total Fair Value | Non-recurring basis | Uncovered | Commercial real estate | ||||||
Fair Value | ||||||
Impaired loans | 463,000 | 463,000 | 4,115,000 | |||
Total Fair Value | Non-recurring basis | Uncovered | Commercial and industrial | ||||||
Fair Value | ||||||
Impaired loans | 2,639,000 | 2,639,000 | 579,000 | |||
Total Fair Value | Non-recurring basis | Uncovered | Consumer | ||||||
Fair Value | ||||||
Impaired loans | 12,000 | |||||
Total Fair Value | Non-recurring basis | Covered | ||||||
Other real estate owned | ||||||
Total OREO | 1,082,000 | 1,082,000 | 3,807,000 | |||
Total Fair Value | Non-recurring basis | Covered | Residential real estate | ||||||
Fair Value | ||||||
Impaired loans | 212,000 | 212,000 | 152,000 | |||
Total Fair Value | Non-recurring basis | Covered | Commercial real estate | ||||||
Fair Value | ||||||
Impaired loans | 125,000 | 125,000 | ||||
Total Fair Value | Non-recurring basis | Covered | Commercial and industrial | ||||||
Fair Value | ||||||
Impaired loans | 350,000 | |||||
Total Fair Value | Non-recurring basis | Total covered | ||||||
Fair Value | ||||||
Impaired loans | $ 337,000 | $ 337,000 | $ 502,000 |
FAIR VALUE (Details 9)
FAIR VALUE (Details 9) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Financial assets: | ||||||
Net loans, excluding covered loans | $ 4,469,879 | $ 3,868,818 | ||||
Net covered loans | 175,872 | 325,137 | ||||
FDIC indemnification asset | 30,551 | $ 36,997 | 67,026 | $ 82,441 | $ 102,694 | $ 131,861 |
FDIC receivable | 2,618 | $ 5,543 | 6,062 | $ 12,873 | $ 7,198 | $ 7,783 |
Company-owned life insurance | 105,975 | 97,782 | ||||
Security held-to-maturity | 1,678 | 1,226 | ||||
Deposits: | ||||||
Time deposits | 1,611,315 | 1,188,178 | ||||
Total deposits | 5,125,451 | 4,548,863 | ||||
Loans and other liabilities: | ||||||
FDIC clawback liability | 27,269 | 26,905 | ||||
Short-term borrowings | 102,090 | 135,743 | ||||
Long-term debt | 484,981 | 353,972 | ||||
FDIC warrants payable | 4,513 | 4,633 | ||||
Other brokered funds | 335,354 | 642,185 | ||||
Uncovered | ||||||
Loans and other liabilities: | ||||||
Impaired loans | 66,280 | 41,428 | ||||
Covered loans | ||||||
Loans and other liabilities: | ||||||
Impaired loans | 13,102 | 35,321 | ||||
Recurring basis | ||||||
Loans and other liabilities: | ||||||
Other brokered funds | 66,800 | 72,300 | ||||
Recurring basis | Covered loans | ||||||
Loans and other liabilities: | ||||||
Impaired loans | 20,900 | 19,500 | ||||
Non-recurring basis | Uncovered | ||||||
Loans and other liabilities: | ||||||
Impaired loans | 5,700 | 7,600 | ||||
Non-recurring basis | Covered loans | ||||||
Loans and other liabilities: | ||||||
Impaired loans | 337 | 502 | ||||
Level 1 | Recurring basis | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 82,822 | 86,185 | ||||
Net loans, excluding covered loans | 0 | 0 | ||||
Net covered loans | 0 | 0 | ||||
Accrued interest receivable | 0 | 0 | ||||
FDIC indemnification asset | 0 | 0 | ||||
FDIC receivable | 0 | 0 | ||||
Company-owned life insurance | 0 | 0 | ||||
Security held-to-maturity | 0 | 0 | ||||
Deposits: | ||||||
Savings and demand deposits | 0 | 0 | ||||
Time deposits | 0 | 0 | ||||
Total deposits | 0 | 0 | ||||
Loans and other liabilities: | ||||||
FDIC clawback liability | 0 | 0 | ||||
Short-term borrowings | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
FDIC warrants payable | 0 | 0 | ||||
Accrued interest payable | 0 | 0 | ||||
Deferred compensation plan liabilities | 0 | 0 | ||||
Level 1 | Non-recurring basis | ||||||
Loans and other liabilities: | ||||||
Impaired loans | 0 | 0 | ||||
Level 2 | Recurring basis | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 246,740 | 167,551 | ||||
Net loans, excluding covered loans | 0 | 0 | ||||
Net covered loans | 0 | 0 | ||||
Accrued interest receivable | 16,096 | 12,533 | ||||
FDIC indemnification asset | 0 | 0 | ||||
FDIC receivable | 2,618 | 6,062 | ||||
Company-owned life insurance | 105,975 | 97,782 | ||||
Security held-to-maturity | 0 | 0 | ||||
Deposits: | ||||||
Savings and demand deposits | 3,447,364 | 3,288,414 | ||||
Time deposits | 1,678,060 | 1,260,453 | ||||
Total deposits | 5,125,424 | 4,548,867 | ||||
Loans and other liabilities: | ||||||
FDIC clawback liability | 0 | 0 | ||||
Short-term borrowings | 102,090 | 135,743 | ||||
Long-term debt | 479,658 | 348,373 | ||||
FDIC warrants payable | 0 | 0 | ||||
Accrued interest payable | 3,002 | 1,476 | ||||
Deferred compensation plan liabilities | 1,654 | 587 | ||||
Level 2 | Non-recurring basis | ||||||
Loans and other liabilities: | ||||||
Impaired loans | 0 | 0 | ||||
Level 3 | Recurring basis | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Net loans, excluding covered loans | 4,572,634 | 3,948,847 | ||||
Net covered loans | 222,614 | 420,627 | ||||
Accrued interest receivable | 0 | 0 | ||||
FDIC indemnification asset | 15,759 | 34,572 | ||||
FDIC receivable | 0 | 0 | ||||
Company-owned life insurance | 0 | 0 | ||||
Security held-to-maturity | 1,678 | 1,226 | ||||
Deposits: | ||||||
Savings and demand deposits | 0 | 0 | ||||
Time deposits | 0 | 0 | ||||
Total deposits | 0 | 0 | ||||
Loans and other liabilities: | ||||||
FDIC clawback liability | 27,269 | 26,905 | ||||
Short-term borrowings | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
FDIC warrants payable | 4,513 | 4,633 | ||||
Accrued interest payable | 0 | 0 | ||||
Deferred compensation plan liabilities | 0 | 0 | ||||
Level 3 | Non-recurring basis | ||||||
Loans and other liabilities: | ||||||
Impaired loans | 6,008 | 8,106 | ||||
Carrying Value | Recurring basis | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 329,562 | 253,736 | ||||
Federal Home Loan Bank stock | 25,416 | 20,212 | ||||
Net loans, excluding covered loans | 4,469,879 | 3,868,818 | ||||
Net covered loans | 175,872 | 325,137 | ||||
Accrued interest receivable | 16,096 | 12,533 | ||||
FDIC indemnification asset | 30,551 | 67,026 | ||||
FDIC receivable | 2,618 | 6,062 | ||||
Company-owned life insurance | 105,975 | 97,782 | ||||
Security held-to-maturity | 1,678 | 1,226 | ||||
Deposits: | ||||||
Savings and demand deposits | 3,447,364 | 3,288,414 | ||||
Time deposits | 1,678,087 | 1,260,449 | ||||
Total deposits | 5,125,451 | 4,548,863 | ||||
Loans and other liabilities: | ||||||
FDIC clawback liability | 27,269 | 26,905 | ||||
Short-term borrowings | 102,090 | 135,743 | ||||
Long-term debt | 484,981 | 353,972 | ||||
FDIC warrants payable | 4,513 | 4,633 | ||||
Accrued interest payable | 3,002 | 1,476 | ||||
Deferred compensation plan liabilities | 1,654 | 587 | ||||
Total Fair Value | Recurring basis | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 329,562 | 253,736 | ||||
Net loans, excluding covered loans | 4,572,634 | 3,948,847 | ||||
Net covered loans | 222,614 | 420,627 | ||||
Accrued interest receivable | 16,096 | 12,533 | ||||
FDIC indemnification asset | 15,759 | 34,572 | ||||
FDIC receivable | 2,618 | 6,062 | ||||
Company-owned life insurance | 105,975 | 97,782 | ||||
Security held-to-maturity | 1,678 | 1,226 | ||||
Deposits: | ||||||
Savings and demand deposits | 3,447,364 | 3,288,414 | ||||
Time deposits | 1,678,060 | 1,260,453 | ||||
Total deposits | 5,125,424 | 4,548,867 | ||||
Loans and other liabilities: | ||||||
FDIC clawback liability | 27,269 | 26,905 | ||||
Short-term borrowings | 102,090 | 135,743 | ||||
Long-term debt | 479,658 | 348,373 | ||||
FDIC warrants payable | 4,513 | 4,633 | ||||
Accrued interest payable | 3,002 | 1,476 | ||||
Deferred compensation plan liabilities | 1,654 | 587 | ||||
Total Fair Value | Non-recurring basis | ||||||
Loans and other liabilities: | ||||||
Impaired loans | $ 6,008 | $ 8,106 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | $ 871,192 | $ 734,674 |
Gross Unrealized Gains | 10,640 | 7,703 |
Gross Unrealized Losses | (1,127) | (1,558) |
Fair Value | 880,705 | 740,819 |
Held-to-maturity: | ||
Total securities held-to-maturity, amortized cost | 1,678 | 1,226 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,678 | 1,226 |
U.S. government sponsored agency obligations | ||
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | 97,905 | 97,746 |
Gross Unrealized Gains | 1,218 | 791 |
Gross Unrealized Losses | (23) | (179) |
Fair Value | 99,100 | 98,358 |
Taxable | ||
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | 318 | 397 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 318 | 397 |
Tax exempt | ||
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | 274,127 | 229,404 |
Gross Unrealized Gains | 4,171 | 3,578 |
Gross Unrealized Losses | (567) | (723) |
Fair Value | 277,731 | 232,259 |
SBA Pools | ||
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | 29,884 | 33,824 |
Gross Unrealized Gains | 531 | 209 |
Gross Unrealized Losses | (2) | (100) |
Fair Value | 30,413 | 33,933 |
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | 303,208 | 289,156 |
Gross Unrealized Gains | 4,212 | 2,886 |
Gross Unrealized Losses | (65) | (283) |
Fair Value | 307,355 | 291,759 |
Privately issued | ||
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | 58,328 | 18,814 |
Gross Unrealized Gains | 67 | 27 |
Gross Unrealized Losses | (198) | (41) |
Fair Value | 58,197 | 18,800 |
Privately issued commercial mortgage-backed securities | ||
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | 19,222 | 5,127 |
Gross Unrealized Gains | 20 | 3 |
Gross Unrealized Losses | (100) | 0 |
Fair Value | 19,142 | 5,130 |
Corporate debt securities | ||
Investment securities available-for-sale | ||
Total available-for-sale securities, amortized cost | 88,200 | 60,206 |
Gross Unrealized Gains | 421 | 209 |
Gross Unrealized Losses | (172) | (232) |
Fair Value | $ 88,449 | $ 60,183 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Information with respect to proceeds from sales of securities and the associated gains and losses | ||||
Proceeds | $ 28,300 | $ 28,285 | $ 53,050 | $ 82,496 |
Gross gains | 403 | 248 | 412 | 248 |
Gross losses | $ (201) | $ (4) | $ (311) | $ (2,314) |
SECURITIES (Details 3)
SECURITIES (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized Cost - Securities with contractual maturities: | ||
Within one year | $ 7,086 | |
After one year through five years | 156,992 | |
After five years through ten years | 197,634 | |
After ten years | 509,480 | |
Total available-for-sale securities, amortized cost | 871,192 | $ 734,674 |
Fair Value - Securities with contractual maturities: | ||
Within one year | 7,146 | |
After one year through five years | 158,923 | |
After five years through ten years | 199,479 | |
After ten years | 515,157 | |
Total securities available-for-sale | 880,705 | 740,819 |
Amortized Cost - Securities held-to-maturity: | ||
After one year through five years | 1,678 | |
Total securities held-to-maturity, amortized cost | 1,678 | 1,226 |
Fair Value - Securities held-to-maturity: | ||
After one year through five years | 1,678 | |
Total securities held-to-maturity | 1,678 | 1,226 |
Available-for-sale securities pledged as collateral | ||
Securities with amortized cost pledged to secure borrowings and deposits | $ 396,700 | $ 337,800 |
SECURITIES (Details 4)
SECURITIES (Details 4) | Sep. 30, 2015USD ($)security | Dec. 31, 2014USD ($) |
Less than 12 Months | ||
Fair Value | $ 215,591,000 | $ 99,480,000 |
Unrealized losses | (945,000) | (552,000) |
More than 12 Months | ||
Fair Value | 8,618,000 | 102,434,000 |
Unrealized losses | (182,000) | (1,006,000) |
Total | ||
Fair Value | 224,209,000 | 201,914,000 |
Unrealized losses | $ (1,127,000) | (1,558,000) |
Other information with respect to available-for-sale securities | ||
Number of securities in portfolio | security | 337 | |
Number of securities in an unrealized loss position | security | 77 | |
Securities of any one issuer, other than U.S. Government, greater than 10% of shareholders equity | $ 0 | 0 |
Available-for-sale securities in unrealized loss position fair value | 224,209,000 | 201,914,000 |
Available-for-sale securities, gross unrealized loss | 1,127,000 | 1,558,000 |
U.S. government sponsored agency obligations | ||
Less than 12 Months | ||
Fair Value | 14,977,000 | 0 |
Unrealized losses | (23,000) | 0 |
More than 12 Months | ||
Fair Value | 0 | 14,821,000 |
Unrealized losses | 0 | (179,000) |
Total | ||
Fair Value | 14,977,000 | 14,821,000 |
Unrealized losses | (23,000) | (179,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 14,977,000 | 14,821,000 |
Available-for-sale securities, gross unrealized loss | 23,000 | 179,000 |
Tax exempt | ||
Less than 12 Months | ||
Fair Value | 60,604,000 | 31,054,000 |
Unrealized losses | (405,000) | (260,000) |
More than 12 Months | ||
Fair Value | 8,188,000 | 33,650,000 |
Unrealized losses | (162,000) | (463,000) |
Total | ||
Fair Value | 68,792,000 | 64,704,000 |
Unrealized losses | (567,000) | (723,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 68,792,000 | 64,704,000 |
Available-for-sale securities, gross unrealized loss | 567,000 | 723,000 |
SBA Pools | ||
Less than 12 Months | ||
Fair Value | 1,585,000 | 1,844,000 |
Unrealized losses | (2,000) | (4,000) |
More than 12 Months | ||
Fair Value | 0 | 17,682,000 |
Unrealized losses | 0 | (96,000) |
Total | ||
Fair Value | 1,585,000 | 19,526,000 |
Unrealized losses | (2,000) | (100,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 1,585,000 | 19,526,000 |
Available-for-sale securities, gross unrealized loss | 2,000 | 100,000 |
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||
Less than 12 Months | ||
Fair Value | 52,889,000 | 36,261,000 |
Unrealized losses | (65,000) | (85,000) |
More than 12 Months | ||
Fair Value | 0 | 27,361,000 |
Unrealized losses | 0 | (198,000) |
Total | ||
Fair Value | 52,889,000 | 63,622,000 |
Unrealized losses | (65,000) | (283,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 52,889,000 | 63,622,000 |
Available-for-sale securities, gross unrealized loss | 65,000 | 283,000 |
Privately issued | ||
Less than 12 Months | ||
Fair Value | 39,175,000 | 7,801,000 |
Unrealized losses | (198,000) | (41,000) |
More than 12 Months | ||
Fair Value | 0 | 8,000 |
Unrealized losses | 0 | 0 |
Total | ||
Fair Value | 39,175,000 | 7,809,000 |
Unrealized losses | (198,000) | (41,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 39,175,000 | 7,809,000 |
Available-for-sale securities, gross unrealized loss | 198,000 | 41,000 |
Privately issued commercial mortgage-backed securities | ||
Less than 12 Months | ||
Fair Value | 14,036,000 | |
Unrealized losses | (100,000) | |
More than 12 Months | ||
Fair Value | 0 | |
Unrealized losses | 0 | |
Total | ||
Fair Value | 14,036,000 | |
Unrealized losses | (100,000) | |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 14,036,000 | |
Available-for-sale securities, gross unrealized loss | 100,000 | 0 |
Corporate debt securities | ||
Less than 12 Months | ||
Fair Value | 32,325,000 | 22,520,000 |
Unrealized losses | (152,000) | (162,000) |
More than 12 Months | ||
Fair Value | 430,000 | 8,912,000 |
Unrealized losses | (20,000) | (70,000) |
Total | ||
Fair Value | 32,755,000 | 31,432,000 |
Unrealized losses | (172,000) | (232,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 32,755,000 | 31,432,000 |
Available-for-sale securities, gross unrealized loss | $ 172,000 | $ 232,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Loans | |||
Total uncovered loans | $ 4,514,959 | $ 3,902,637 | |
Total | 4,701,588 | 4,249,127 | |
Deferred fees and costs | $ 187 | 4,600 | |
Minimum | |||
Loans | |||
Term of finance | 15 years | ||
Maximum | |||
Loans | |||
Term of finance | 30 years | ||
Covered loans | |||
Loans | |||
Total covered loans | $ 186,629 | 346,490 | |
Covered loans | Accounted for under ASC 310-30 | |||
Loans | |||
Total covered loans | 155,755 | 289,037 | |
Covered loans | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total covered loans | 30,874 | 57,453 | |
Uncovered | |||
Loans | |||
Total uncovered loans | 4,514,959 | 3,902,637 | |
Uncovered | Accounted for under ASC 310-30 | |||
Loans | |||
Total uncovered loans | 463,908 | 455,868 | |
Uncovered | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total uncovered loans | 4,051,051 | 3,446,769 | |
Residential real estate | |||
Loans | |||
Total uncovered loans | [1] | 1,452,290 | 1,426,012 |
Total | 1,542,661 | 1,534,238 | |
Residential real estate | Covered loans | |||
Loans | |||
Total covered loans | 90,371 | 108,226 | |
Residential real estate | Covered loans | Accounted for under ASC 310-30 | |||
Loans | |||
Total covered loans | 71,627 | 86,515 | |
Residential real estate | Covered loans | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total covered loans | 18,744 | 21,711 | |
Residential real estate | Uncovered | |||
Loans | |||
Total uncovered loans | 1,452,290 | 1,426,012 | |
Residential real estate | Uncovered | Accounted for under ASC 310-30 | |||
Loans | |||
Total uncovered loans | 216,165 | 239,523 | |
Residential real estate | Uncovered | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total uncovered loans | 1,236,125 | 1,186,489 | |
Commercial real estate | |||
Loans | |||
Total uncovered loans | 1,484,421 | 1,310,938 | |
Total | 1,561,529 | 1,497,600 | |
Commercial real estate | Covered loans | |||
Loans | |||
Total covered loans | 77,108 | 186,662 | |
Commercial real estate | Covered loans | Accounted for under ASC 310-30 | |||
Loans | |||
Total covered loans | 70,681 | 160,886 | |
Commercial real estate | Covered loans | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total covered loans | 6,427 | 25,776 | |
Commercial real estate | Uncovered | |||
Loans | |||
Total uncovered loans | 1,484,421 | 1,310,938 | |
Commercial real estate | Uncovered | Accounted for under ASC 310-30 | |||
Loans | |||
Total uncovered loans | 210,482 | 190,148 | |
Commercial real estate | Uncovered | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total uncovered loans | 1,273,939 | 1,120,790 | |
Commercial and industrial | |||
Loans | |||
Total uncovered loans | 1,196,717 | 869,477 | |
Total | 1,210,613 | 902,125 | |
Commercial and industrial | Covered loans | |||
Loans | |||
Total covered loans | 13,896 | 32,648 | |
Commercial and industrial | Covered loans | Accounted for under ASC 310-30 | |||
Loans | |||
Total covered loans | 8,729 | 23,752 | |
Commercial and industrial | Covered loans | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total covered loans | 5,167 | 8,896 | |
Commercial and industrial | Uncovered | |||
Loans | |||
Total uncovered loans | 1,196,717 | 869,477 | |
Commercial and industrial | Uncovered | Accounted for under ASC 310-30 | |||
Loans | |||
Total uncovered loans | 20,715 | 15,499 | |
Commercial and industrial | Uncovered | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total uncovered loans | 1,176,002 | 853,978 | |
Real estate construction | |||
Loans | |||
Total uncovered loans | [1] | 217,035 | 131,686 |
Total | 222,184 | 141,075 | |
Real estate construction | Covered loans | |||
Loans | |||
Total covered loans | 5,149 | 9,389 | |
Real estate construction | Covered loans | Accounted for under ASC 310-30 | |||
Loans | |||
Total covered loans | 4,615 | 8,415 | |
Real estate construction | Covered loans | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total covered loans | 534 | 974 | |
Real estate construction | Uncovered | |||
Loans | |||
Total uncovered loans | 217,035 | 131,686 | |
Real estate construction | Uncovered | Accounted for under ASC 310-30 | |||
Loans | |||
Total uncovered loans | 6,847 | 8,309 | |
Real estate construction | Uncovered | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total uncovered loans | 210,188 | 123,377 | |
Consumer | |||
Loans | |||
Total uncovered loans | 164,496 | 164,524 | |
Total | 164,601 | 174,089 | |
Consumer | Covered loans | |||
Loans | |||
Total covered loans | 105 | 9,565 | |
Consumer | Covered loans | Accounted for under ASC 310-30 | |||
Loans | |||
Total covered loans | 103 | 9,469 | |
Consumer | Covered loans | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total covered loans | 2 | 96 | |
Consumer | Uncovered | |||
Loans | |||
Total uncovered loans | 164,496 | 164,524 | |
Consumer | Uncovered | Accounted for under ASC 310-30 | |||
Loans | |||
Total uncovered loans | 9,699 | 2,389 | |
Consumer | Uncovered | Excluded from ASC 310-30 accounting | |||
Loans | |||
Total uncovered loans | $ 154,797 | $ 162,135 | |
[1] | Amounts represent loans for which the Company has elected the fair value option. See Note 3. |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Uncovered | ||
Information on nonperforming assets | ||
Nonaccrual loans | $ 46,040 | $ 35,111 |
Uncovered | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 196 | 53 |
Covered loans | ||
Information on nonperforming assets | ||
Nonaccrual loans | 7,706 | 21,857 |
Covered loans | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 0 |
Nonperforming assets | ||
Information on nonperforming assets | ||
Total assets | 86,696 | 104,559 |
Nonperforming assets | Uncovered | ||
Information on nonperforming assets | ||
Nonaccrual loans | 46,040 | 35,111 |
Other real estate owned and repossessed assets | 27,329 | 36,872 |
Total assets | 73,369 | 71,983 |
Nonperforming assets | Covered loans | ||
Information on nonperforming assets | ||
Nonaccrual loans | 7,706 | 21,857 |
Other real estate owned and repossessed assets | 5,621 | 10,719 |
Total assets | 13,327 | 32,576 |
Residential real estate | Uncovered | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 62 | 12 |
Residential real estate | Covered loans | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 0 |
Residential real estate | Nonperforming assets | Uncovered | ||
Information on nonperforming assets | ||
Nonaccrual loans | 17,562 | 17,374 |
Residential real estate | Nonperforming assets | Covered loans | ||
Information on nonperforming assets | ||
Nonaccrual loans | 2,010 | 1,848 |
Commercial real estate | Uncovered | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 0 |
Commercial real estate | Covered loans | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 0 |
Commercial real estate | Nonperforming assets | Uncovered | ||
Information on nonperforming assets | ||
Nonaccrual loans | 17,940 | 13,756 |
Commercial real estate | Nonperforming assets | Covered loans | ||
Information on nonperforming assets | ||
Nonaccrual loans | 3,780 | 15,723 |
Commercial and industrial | Uncovered | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 15 | 0 |
Commercial and industrial | Covered loans | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 0 |
Commercial and industrial | Nonperforming assets | Uncovered | ||
Information on nonperforming assets | ||
Nonaccrual loans | 9,941 | 3,550 |
Commercial and industrial | Nonperforming assets | Covered loans | ||
Information on nonperforming assets | ||
Nonaccrual loans | 1,678 | 3,560 |
Real estate construction | Uncovered | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 0 |
Real estate construction | Covered loans | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 0 |
Real estate construction | Nonperforming assets | Uncovered | ||
Information on nonperforming assets | ||
Nonaccrual loans | 333 | 174 |
Real estate construction | Nonperforming assets | Covered loans | ||
Information on nonperforming assets | ||
Nonaccrual loans | 236 | 713 |
Consumer | Uncovered | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 119 | 41 |
Consumer | Covered loans | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 0 |
Consumer | Nonperforming assets | Uncovered | ||
Information on nonperforming assets | ||
Nonaccrual loans | 264 | 257 |
Consumer | Nonperforming assets | Covered loans | ||
Information on nonperforming assets | ||
Nonaccrual loans | $ 2 | $ 13 |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loans and Allowance for Loan Losses | ||
90 days or more past due | $ 238 | $ 191 |
Covered loans | ||
Loans and Allowance for Loan Losses | ||
Total covered loans | 186,629 | 346,490 |
Covered loans | Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Total covered loans | 90,371 | 108,226 |
Covered loans | Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Total covered loans | 77,108 | 186,662 |
Covered loans | Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Total covered loans | 13,896 | 32,648 |
Covered loans | Real estate construction | ||
Loans and Allowance for Loan Losses | ||
Total covered loans | 5,149 | 9,389 |
Covered loans | Consumer | ||
Loans and Allowance for Loan Losses | ||
Total covered loans | 105 | 9,565 |
Excluded from ASC 310-30 accounting | Uncovered | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 11,303 | 23,226 |
60-89 days past due | 7,473 | 3,599 |
90 days or more past due | 24,187 | 24,210 |
Total past due | 42,963 | 51,035 |
Current | 4,008,088 | 3,395,734 |
Total uncovered loans, excluding ASC 310-30 | 4,051,051 | 3,446,769 |
90 days or more past due and still accruing | 196 | 53 |
Excluded from ASC 310-30 accounting | Uncovered | Residential real estate | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 4,056 | 11,709 |
60-89 days past due | 1,581 | 2,044 |
90 days or more past due | 7,560 | 9,593 |
Total past due | 13,197 | 23,346 |
Current | 1,222,928 | 1,163,143 |
Total uncovered loans, excluding ASC 310-30 | 1,236,125 | 1,186,489 |
90 days or more past due and still accruing | 62 | 12 |
Excluded from ASC 310-30 accounting | Uncovered | Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 4,780 | 4,870 |
60-89 days past due | 1,603 | 1,083 |
90 days or more past due | 12,361 | 11,333 |
Total past due | 18,744 | 17,286 |
Current | 1,255,195 | 1,103,504 |
Total uncovered loans, excluding ASC 310-30 | 1,273,939 | 1,120,790 |
90 days or more past due and still accruing | 0 | 0 |
Excluded from ASC 310-30 accounting | Uncovered | Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 1,152 | 4,679 |
60-89 days past due | 4,029 | 184 |
90 days or more past due | 3,815 | 2,960 |
Total past due | 8,996 | 7,823 |
Current | 1,167,006 | 846,155 |
Total uncovered loans, excluding ASC 310-30 | 1,176,002 | 853,978 |
90 days or more past due and still accruing | 15 | 0 |
Excluded from ASC 310-30 accounting | Uncovered | Real estate construction | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 0 | 1,004 |
60-89 days past due | 0 | 136 |
90 days or more past due | 199 | 174 |
Total past due | 199 | 1,314 |
Current | 209,989 | 122,063 |
Total uncovered loans, excluding ASC 310-30 | 210,188 | 123,377 |
90 days or more past due and still accruing | 0 | 0 |
Excluded from ASC 310-30 accounting | Uncovered | Consumer | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 1,315 | 964 |
60-89 days past due | 260 | 152 |
90 days or more past due | 252 | 150 |
Total past due | 1,827 | 1,266 |
Current | 152,970 | 160,869 |
Total uncovered loans, excluding ASC 310-30 | 154,797 | 162,135 |
90 days or more past due and still accruing | 119 | 41 |
Excluded from ASC 310-30 accounting | Covered loans | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 211 | 611 |
60-89 days past due | 183 | 42 |
90 days or more past due | 4,732 | 9,383 |
Total past due | 5,126 | 10,036 |
Current | 25,748 | 47,417 |
Total covered loans | 30,874 | 57,453 |
90 days or more past due and still accruing | 0 | 0 |
Excluded from ASC 310-30 accounting | Covered loans | Residential real estate | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 204 | 238 |
60-89 days past due | 180 | 35 |
90 days or more past due | 744 | 1,179 |
Total past due | 1,128 | 1,452 |
Current | 17,616 | 20,259 |
Total covered loans | 18,744 | 21,711 |
90 days or more past due and still accruing | 0 | 0 |
Excluded from ASC 310-30 accounting | Covered loans | Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 0 | 0 |
60-89 days past due | 3 | 0 |
90 days or more past due | 2,086 | 4,569 |
Total past due | 2,089 | 4,569 |
Current | 4,338 | 21,207 |
Total covered loans | 6,427 | 25,776 |
90 days or more past due and still accruing | 0 | 0 |
Excluded from ASC 310-30 accounting | Covered loans | Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 7 | 373 |
60-89 days past due | 0 | 7 |
90 days or more past due | 1,675 | 2,923 |
Total past due | 1,682 | 3,303 |
Current | 3,485 | 5,593 |
Total covered loans | 5,167 | 8,896 |
90 days or more past due and still accruing | 0 | 0 |
Excluded from ASC 310-30 accounting | Covered loans | Real estate construction | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days or more past due | 227 | 710 |
Total past due | 227 | 710 |
Current | 307 | 264 |
Total covered loans | 534 | 974 |
90 days or more past due and still accruing | 0 | 0 |
Excluded from ASC 310-30 accounting | Covered loans | Consumer | ||
Loans and Allowance for Loan Losses | ||
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
90 days or more past due | 0 | 2 |
Total past due | 0 | 2 |
Current | 2 | 94 |
Total covered loans | 2 | 96 |
90 days or more past due and still accruing | $ 0 | $ 0 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Performing assets | ||
Information as to total impaired loans | ||
Troubled debt restructurings | $ 25,600 | $ 19,800 |
Uncovered | ||
Information as to total impaired loans | ||
Nonaccrual loans | 46,040 | 35,111 |
Impaired loans, total recorded investment | 66,280 | 41,428 |
Uncovered | Performing assets | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 20,240 | 6,317 |
Uncovered | Performing assets | Residential real estate | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 2,402 | 1,368 |
Uncovered | Performing assets | Commercial real estate | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 13,973 | 3,785 |
Uncovered | Performing assets | Commercial and industrial | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 3,433 | 840 |
Uncovered | Performing assets | Real estate construction | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 197 | 90 |
Uncovered | Performing assets | Consumer | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 235 | 234 |
Covered loans | ||
Information as to total impaired loans | ||
Nonaccrual loans | 7,706 | 21,857 |
Impaired loans, total recorded investment | 13,102 | 35,321 |
Covered loans | Performing assets | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 5,396 | 13,464 |
Covered loans | Performing assets | Residential real estate | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 3,185 | 3,046 |
Covered loans | Performing assets | Commercial real estate | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 1,709 | 9,017 |
Covered loans | Performing assets | Commercial and industrial | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 204 | 1,137 |
Covered loans | Performing assets | Real estate construction | ||
Information as to total impaired loans | ||
Troubled debt restructurings | $ 298 | $ 264 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Information as to total impaired loans | ||
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 | |
Nonperforming assets | ||
Information as to total impaired loans | ||
Troubled debt restructurings | $ 17.6 | $ 25 |
Performing assets | ||
Information as to total impaired loans | ||
Troubled debt restructurings | $ 25.6 | $ 19.8 |
LOANS (Details 6)
LOANS (Details 6) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | |
Troubled Debt Restructurings | ||||
Total number of loans | loan | 48 | 24 | 129 | 80 |
Total recorded investment (modified) | $ 3,787 | $ 1,801 | $ 12,854 | $ 6,291 |
Net charge-offs (recoveries) | 51 | 0 | 402 | 27 |
Provision (benefit) for loan losses | 363 | (19) | 1,184 | 760 |
Loan forgiven | $ 21 | $ 273 | $ 209 | $ 677 |
Uncovered | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 44 | 18 | 107 | 50 |
Total recorded investment (modified) | $ 3,652 | $ 1,534 | $ 9,937 | $ 4,301 |
Net charge-offs (recoveries) | 17 | 0 | 358 | 21 |
Provision (benefit) for loan losses | $ 334 | $ (20) | $ 1,047 | $ 668 |
Uncovered | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 18 | 8 | 42 | 23 |
Total recorded investment (modified) | $ 1,285 | $ 653 | $ 2,493 | $ 1,377 |
Net charge-offs (recoveries) | 13 | 18 | 57 | 65 |
Provision (benefit) for loan losses | $ 5 | $ 29 | $ 191 | $ 216 |
Uncovered | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 8 | 7 | 21 | 12 |
Total recorded investment (modified) | $ 1,031 | $ 819 | $ 4,112 | $ 2,573 |
Net charge-offs (recoveries) | 0 | (18) | 96 | (46) |
Provision (benefit) for loan losses | $ 30 | $ (18) | $ 205 | $ 431 |
Uncovered | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 16 | 2 | 37 | 12 |
Total recorded investment (modified) | $ 1,212 | $ 35 | $ 3,042 | $ 241 |
Net charge-offs (recoveries) | 0 | 0 | 201 | 0 |
Provision (benefit) for loan losses | $ 297 | $ (31) | $ 544 | $ 0 |
Uncovered | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 1 | 4 | ||
Total recorded investment (modified) | $ 112 | $ 246 | ||
Net charge-offs (recoveries) | 0 | 0 | ||
Provision (benefit) for loan losses | $ (2) | $ 103 | ||
Uncovered | Consumer | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 1 | 1 | 3 | 3 |
Total recorded investment (modified) | $ 12 | $ 27 | $ 44 | $ 110 |
Net charge-offs (recoveries) | 4 | 0 | 4 | 2 |
Provision (benefit) for loan losses | $ 4 | $ 0 | $ 4 | $ 21 |
Covered loans | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 4 | 6 | 22 | 30 |
Total recorded investment (modified) | $ 135 | $ 267 | $ 2,917 | $ 1,990 |
Net charge-offs (recoveries) | 34 | 0 | 44 | 6 |
Provision (benefit) for loan losses | $ 29 | $ 1 | $ 137 | $ 92 |
Covered loans | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 2 | 4 | 10 | 17 |
Total recorded investment (modified) | $ 99 | $ 205 | $ 817 | $ 590 |
Net charge-offs (recoveries) | 0 | 0 | 5 | 6 |
Provision (benefit) for loan losses | $ (1) | $ (1) | $ 69 | $ 14 |
Covered loans | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 2 | 9 | 3 | |
Total recorded investment (modified) | $ 36 | $ 2,045 | $ 1,055 | |
Net charge-offs (recoveries) | 34 | 41 | 0 | |
Provision (benefit) for loan losses | 30 | $ 73 | $ 70 | |
Covered loans | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 2 | 1 | 10 | |
Total recorded investment (modified) | $ 62 | $ 1 | $ 345 | |
Net charge-offs (recoveries) | 0 | 0 | 0 | |
Provision (benefit) for loan losses | 2 | $ (3) | 8 | |
Covered loans | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 2 | |||
Total recorded investment (modified) | $ 54 | |||
Net charge-offs (recoveries) | (2) | |||
Provision (benefit) for loan losses | (2) | |||
Principal deferral | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,817 | 654 | 3,480 | 942 |
Principal deferral | Uncovered | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,734 | 463 | 2,817 | 642 |
Principal deferral | Uncovered | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,131 | 1 | 1,510 | 144 |
Principal deferral | Uncovered | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 14 | 435 | 101 | 435 |
Principal deferral | Uncovered | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 465 | 0 | 1,007 | 36 |
Principal deferral | Uncovered | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 112 | 155 | ||
Principal deferral | Uncovered | Consumer | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 12 | 27 | 44 | 27 |
Principal deferral | Covered loans | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 83 | 191 | 663 | 300 |
Principal deferral | Covered loans | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 83 | 191 | 618 | 300 |
Principal deferral | Covered loans | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | |
Principal deferral | Covered loans | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | |
Principal deferral | Covered loans | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 45 | |||
Principal reduction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 21 | 180 | 134 | 495 |
Principal reduction | Uncovered | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 5 | 166 | 118 | 467 |
Principal reduction | Uncovered | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 5 | 166 | 118 | 384 |
Principal reduction | Uncovered | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Principal reduction | Uncovered | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Principal reduction | Uncovered | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | ||
Principal reduction | Uncovered | Consumer | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 83 |
Principal reduction | Covered loans | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 16 | 14 | 16 | 28 |
Principal reduction | Covered loans | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 16 | 14 | 16 | 28 |
Principal reduction | Covered loans | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | |
Principal reduction | Covered loans | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | |
Principal reduction | Covered loans | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | |||
Interest rate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,392 | 841 | 7,270 | 2,944 |
Interest rate | Uncovered | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,356 | 779 | 5,032 | 1,786 |
Interest rate | Uncovered | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 149 | 486 | 865 | 714 |
Interest rate | Uncovered | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 460 | 258 | 2,222 | 979 |
Interest rate | Uncovered | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 747 | 35 | 1,876 | 93 |
Interest rate | Uncovered | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 69 | ||
Interest rate | Uncovered | Consumer | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Interest rate | Covered loans | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 36 | 62 | 2,238 | 1,158 |
Interest rate | Covered loans | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 183 | 262 |
Interest rate | Covered loans | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 36 | 2,045 | 643 | |
Interest rate | Covered loans | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 62 | 1 | 253 | |
Interest rate | Covered loans | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 9 | |||
Forbearance agreement | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 557 | 126 | 1,970 | 1,910 |
Forbearance agreement | Uncovered | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 557 | 126 | 1,970 | 1,406 |
Forbearance agreement | Uncovered | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 135 |
Forbearance agreement | Uncovered | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 557 | 126 | 1,789 | 1,159 |
Forbearance agreement | Uncovered | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 159 | 112 |
Forbearance agreement | Uncovered | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 22 | ||
Forbearance agreement | Uncovered | Consumer | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Forbearance agreement | Covered loans | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 504 |
Forbearance agreement | Covered loans | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Forbearance agreement | Covered loans | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | $ 0 | 0 | 412 | |
Forbearance agreement | Covered loans | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | $ 0 | 0 | $ 92 | |
Forbearance agreement | Covered loans | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | $ 0 |
LOANS (Details 7)
LOANS (Details 7) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | |
Troubled Debt Restructurings | ||||
Total number of loans | loan | 30 | 29 | 32 | 57 |
Total recorded investment | $ 3,190 | $ 3,216 | $ 3,190 | $ 5,971 |
Charged-off following a subsequent default | 86 | $ 12 | 535 | $ 943 |
Commitments to lend additional funds to borrowers whose terms have been modified in TDRs | $ 275 | $ 275 | ||
Uncovered | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 26 | 18 | 28 | 31 |
Total recorded investment | $ 2,989 | $ 2,574 | $ 2,989 | $ 4,493 |
Charged-off following a subsequent default | $ 62 | $ 8 | $ 511 | $ 442 |
Uncovered | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 14 | 11 | 16 | 21 |
Total recorded investment | $ 812 | $ 700 | $ 812 | $ 1,345 |
Charged-off following a subsequent default | $ 53 | $ 8 | $ 68 | $ 119 |
Uncovered | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 8 | 6 | 8 | 8 |
Total recorded investment | $ 2,176 | $ 1,739 | $ 2,176 | $ 3,013 |
Charged-off following a subsequent default | $ 0 | $ 0 | $ 434 | $ 323 |
Uncovered | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 4 | 1 | 4 | 2 |
Total recorded investment | $ 1 | $ 135 | $ 1 | $ 135 |
Charged-off following a subsequent default | $ 9 | $ 0 | $ 9 | $ 0 |
Covered loans | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 4 | 11 | 4 | 26 |
Total recorded investment | $ 201 | $ 642 | $ 201 | $ 1,478 |
Charged-off following a subsequent default | $ 24 | $ 4 | $ 24 | $ 501 |
Covered loans | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 2 | 6 | 2 | 9 |
Total recorded investment | $ 71 | $ 29 | $ 71 | $ 242 |
Charged-off following a subsequent default | $ 24 | $ 0 | $ 24 | $ 12 |
Covered loans | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 1 | 2 | 1 | 6 |
Total recorded investment | $ 129 | $ 512 | $ 129 | $ 637 |
Charged-off following a subsequent default | $ 0 | $ 0 | $ 0 | $ 0 |
Covered loans | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 1 | 3 | 1 | 10 |
Total recorded investment | $ 1 | $ 101 | $ 1 | $ 235 |
Charged-off following a subsequent default | $ 0 | $ 4 | $ 0 | $ 6 |
Covered loans | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 0 | 1 | ||
Total recorded investment | $ 0 | $ 364 | ||
Charged-off following a subsequent default | $ 0 | $ 483 |
LOANS (Details 8)
LOANS (Details 8) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | $ 4,514,959 | $ 3,902,637 |
Covered loans | 186,629 | 346,490 |
Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 1,484,421 | 1,310,938 |
Covered loans | 77,108 | 186,662 |
Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 1,196,717 | 869,477 |
Covered loans | 13,896 | 32,648 |
Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 217,035 | 131,686 |
Covered loans | 5,149 | 9,389 |
Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 2,898,173 | 2,312,101 |
Covered loans | 96,153 | 228,699 |
Pass | Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 1,328,955 | 1,153,132 |
Covered loans | 45,069 | 102,952 |
Pass | Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 1,121,534 | 824,239 |
Covered loans | 5,792 | 16,718 |
Pass | Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 212,036 | 123,822 |
Covered loans | 3,164 | 3,817 |
Pass | Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 2,662,525 | 2,101,193 |
Covered loans | 54,025 | 123,487 |
Special Mention | Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 64,746 | 63,567 |
Covered loans | 5,257 | 16,073 |
Special Mention | Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 30,474 | 29,511 |
Covered loans | 536 | 1,875 |
Special Mention | Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 154 | 1,981 |
Covered loans | 51 | 792 |
Special Mention | Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 95,374 | 95,059 |
Covered loans | 5,844 | 18,740 |
Substandard | Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 90,212 | 94,239 |
Covered loans | 26,782 | 67,637 |
Substandard | Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 44,649 | 15,727 |
Covered loans | 7,568 | 14,055 |
Substandard | Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 4,845 | 5,883 |
Covered loans | 1,934 | 4,780 |
Substandard | Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 139,706 | 115,849 |
Covered loans | 36,284 | 86,472 |
Doubtful | Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 508 | 0 |
Covered loans | 0 | 0 |
Doubtful | Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 60 | 0 |
Covered loans | 0 | 0 |
Doubtful | Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 0 | 0 |
Covered loans | 0 | 0 |
Doubtful | Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Uncovered loans | 568 | 0 |
Covered loans | $ 0 | $ 0 |
LOANS (Details 9)
LOANS (Details 9) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loans by credit quality | ||
Uncovered loans | $ 4,514,959 | $ 3,902,637 |
Covered loans | 186,629 | 346,490 |
Residential real estate | ||
Loans by credit quality | ||
Uncovered loans | 1,452,290 | 1,426,012 |
Covered loans | 90,371 | 108,226 |
Consumer | ||
Loans by credit quality | ||
Uncovered loans | 164,496 | 164,524 |
Covered loans | 105 | 9,565 |
Residential real estate and consumer loans | ||
Loans by credit quality | ||
Uncovered loans | 1,616,786 | 1,590,536 |
Covered loans | 90,476 | 117,791 |
Performing assets | Residential real estate | ||
Loans by credit quality | ||
Uncovered loans | 1,434,728 | 1,408,638 |
Covered loans | 88,361 | 106,378 |
Performing assets | Consumer | ||
Loans by credit quality | ||
Uncovered loans | 164,232 | 164,267 |
Covered loans | 103 | 9,552 |
Performing assets | Residential real estate and consumer loans | ||
Loans by credit quality | ||
Uncovered loans | 1,598,960 | 1,572,905 |
Covered loans | 88,464 | 115,930 |
Nonperforming assets | Residential real estate | ||
Loans by credit quality | ||
Uncovered loans | 17,562 | 17,374 |
Covered loans | 2,010 | 1,848 |
Nonperforming assets | Consumer | ||
Loans by credit quality | ||
Uncovered loans | 264 | 257 |
Covered loans | 2 | 13 |
Nonperforming assets | Residential real estate and consumer loans | ||
Loans by credit quality | ||
Uncovered loans | 17,826 | 17,631 |
Covered loans | $ 2,012 | $ 1,861 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Uncovered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | $ 42,970 | $ 42,970 | $ 23,310 | ||
Recorded investment with related allowance | 23,310 | 23,310 | 12,284 | ||
Impaired loans, total recorded investment | 66,280 | 66,280 | 35,594 | ||
Contractual principal balance | 91,670 | 91,670 | 43,687 | ||
Related allowance | 4,676 | 4,676 | 3,450 | ||
Average recorded investment | 67,648 | $ 41,060 | 69,449 | $ 42,451 | |
Interest income recognized | 1,831 | 382 | 4,329 | 1,602 | |
Covered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 7,655 | 7,655 | 14,781 | ||
Recorded investment with related allowance | 5,447 | 5,447 | 15,348 | ||
Impaired loans, total recorded investment | 13,102 | 13,102 | 30,129 | ||
Contractual principal balance | 19,704 | 19,704 | 38,844 | ||
Related allowance | 791 | 791 | 1,803 | ||
Average recorded investment | 13,952 | 24,451 | 15,030 | 24,840 | |
Interest income recognized | 243 | 393 | 791 | 1,118 | |
Average recorded investment | 11,400 | ||||
Residential real estate | Uncovered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 14,797 | 14,797 | 14,316 | ||
Recorded investment with related allowance | 5,167 | 5,167 | 4,268 | ||
Impaired loans, total recorded investment | 19,964 | 19,964 | 18,584 | ||
Contractual principal balance | 25,058 | 25,058 | 23,080 | ||
Related allowance | 1,466 | 1,466 | 1,110 | ||
Average recorded investment | 20,808 | 17,257 | 21,235 | 17,387 | |
Interest income recognized | 388 | 177 | 877 | 505 | |
Residential real estate | Covered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 2,149 | 2,149 | 2,155 | ||
Recorded investment with related allowance | 3,046 | 3,046 | 2,583 | ||
Impaired loans, total recorded investment | 5,195 | 5,195 | 4,738 | ||
Contractual principal balance | 6,691 | 6,691 | 6,388 | ||
Related allowance | 448 | 448 | 417 | ||
Average recorded investment | 5,249 | 4,537 | 5,325 | 4,573 | |
Interest income recognized | 87 | 69 | 248 | 206 | |
Commercial real estate | |||||
Impaired loans individually evaluated for impairment | |||||
Amount of expired loss sharing agreements included in recorded investment | 11,000 | 11,000 | |||
Commercial real estate | Uncovered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 17,282 | 17,282 | 7,609 | ||
Recorded investment with related allowance | 14,631 | 14,631 | 5,956 | ||
Impaired loans, total recorded investment | 31,913 | 31,913 | 13,565 | ||
Contractual principal balance | 48,641 | 48,641 | 17,016 | ||
Related allowance | 2,225 | 2,225 | 1,276 | ||
Average recorded investment | 31,837 | 10,365 | 32,001 | 11,324 | |
Interest income recognized | 1,255 | 74 | 2,790 | 586 | |
Commercial real estate | Covered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 3,361 | 3,361 | 10,400 | ||
Recorded investment with related allowance | 2,128 | 2,128 | 11,985 | ||
Impaired loans, total recorded investment | 5,489 | 5,489 | 22,385 | ||
Contractual principal balance | 8,851 | 8,851 | 28,755 | ||
Related allowance | 302 | 302 | 1,277 | ||
Average recorded investment | 6,061 | 17,344 | 6,522 | 17,488 | |
Interest income recognized | 110 | 294 | 318 | 806 | |
Commercial and industrial | |||||
Impaired loans individually evaluated for impairment | |||||
Amount of expired loss sharing agreements included in recorded investment | 300 | 300 | |||
Commercial and industrial | Uncovered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 10,119 | 10,119 | 915 | ||
Recorded investment with related allowance | 3,255 | 3,255 | 1,884 | ||
Impaired loans, total recorded investment | 13,374 | 13,374 | 2,799 | ||
Contractual principal balance | 16,436 | 16,436 | 2,807 | ||
Related allowance | 817 | 817 | 982 | ||
Average recorded investment | 13,776 | 13,130 | 14,856 | 13,452 | |
Interest income recognized | 164 | 124 | 586 | 497 | |
Commercial and industrial | Covered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 1,654 | 1,654 | 1,545 | ||
Recorded investment with related allowance | 228 | 228 | 779 | ||
Impaired loans, total recorded investment | 1,882 | 1,882 | 2,324 | ||
Contractual principal balance | 3,391 | 3,391 | 2,668 | ||
Related allowance | 41 | 41 | 109 | ||
Average recorded investment | 2,067 | 1,789 | 2,412 | 1,795 | |
Interest income recognized | 34 | 18 | 134 | 51 | |
Average recorded investment | 11,000 | ||||
Real estate construction | Uncovered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 418 | 418 | 174 | ||
Recorded investment with related allowance | 112 | 112 | 0 | ||
Impaired loans, total recorded investment | 530 | 530 | 174 | ||
Contractual principal balance | 660 | 660 | 174 | ||
Related allowance | 103 | 103 | 0 | ||
Average recorded investment | 631 | 683 | |||
Interest income recognized | 14 | 39 | |||
Real estate construction | Covered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 489 | 489 | 670 | ||
Recorded investment with related allowance | 45 | 45 | 0 | ||
Impaired loans, total recorded investment | 534 | 534 | 670 | ||
Contractual principal balance | 760 | 760 | 994 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 572 | 767 | 768 | 965 | |
Interest income recognized | 12 | 11 | 90 | 52 | |
Consumer | |||||
Impaired loans individually evaluated for impairment | |||||
Amount of expired loss sharing agreements included in recorded investment | 22 | 22 | |||
Consumer | Uncovered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 354 | 354 | 296 | ||
Recorded investment with related allowance | 145 | 145 | 176 | ||
Impaired loans, total recorded investment | 499 | 499 | 472 | ||
Contractual principal balance | 875 | 875 | 610 | ||
Related allowance | 65 | 65 | 82 | ||
Average recorded investment | 596 | 308 | 674 | 288 | |
Interest income recognized | 10 | 7 | 37 | 14 | |
Consumer | Covered loans individually evaluated | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 2 | 2 | 11 | ||
Recorded investment with related allowance | 0 | 0 | 1 | ||
Impaired loans, total recorded investment | 2 | 2 | 12 | ||
Contractual principal balance | 11 | 11 | 39 | ||
Related allowance | 0 | 0 | $ 0 | ||
Average recorded investment | 3 | 14 | 3 | 19 | |
Interest income recognized | $ 0 | $ 1 | $ 1 | $ 3 |
ALLOWANCE FOR LOAN LOSSES (De72
ALLOWANCE FOR LOAN LOSSES (Details 2) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)contract | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Changes in the allowance and the allocation of the allowance for loans | |||||||
Balance at beginning of period | $ 33,819 | ||||||
Ending allowance for loan losses | $ 45,080 | 45,080 | |||||
Allowance for loan losses: | |||||||
Allowance for loan losses | 45,080 | $ 33,819 | $ 45,080 | $ 33,819 | |||
Balance of loans: | |||||||
Total uncovered loans | 4,514,959 | 3,902,637 | |||||
Number of FDIC loss share agreements (in contracts) | contract | 4 | ||||||
Uncovered | |||||||
Changes in the allowance and the allocation of the allowance for loans | |||||||
Balance at beginning of period | 36,566 | $ 24,360 | $ 33,819 | $ 17,746 | |||
Transfer in from covered | 3,579 | 3,579 | |||||
Provision (benefit) for loan and lease losses | 3,666 | 7,784 | 8,147 | 17,427 | |||
Gross charge-offs | (2,763) | (4,471) | (13,416) | (12,976) | |||
Recoveries | 4,032 | 2,219 | 12,951 | 7,695 | |||
Net (charge-offs) recoveries | 1,269 | (2,252) | (465) | (5,281) | |||
Ending allowance for loan losses | 45,080 | 29,892 | 45,080 | 29,892 | |||
Allowance for loan losses: | |||||||
Individually evaluated for impairment | 4,676 | 3,450 | |||||
Collectively evaluated for impairment | 23,973 | 16,910 | |||||
Allowance for loan losses | 36,566 | 24,360 | 33,819 | 17,746 | 45,080 | 33,819 | |
Balance of loans: | |||||||
Individually evaluated for impairment | 66,280 | 35,594 | |||||
Collectively evaluated for impairment | 3,984,771 | 3,411,175 | |||||
Total uncovered loans | 4,514,959 | 3,902,637 | |||||
Uncovered | Accounted for under ASC 310-30 | |||||||
Changes in the allowance and the allocation of the allowance for loans | |||||||
Balance at beginning of period | 13,459 | ||||||
Ending allowance for loan losses | 16,431 | 16,431 | |||||
Allowance for loan losses: | |||||||
Allowance for loan losses | 16,431 | 13,459 | 16,431 | 13,459 | |||
Balance of loans: | |||||||
Total uncovered loans | 463,908 | 455,868 | |||||
Residential real estate | |||||||
Balance of loans: | |||||||
Total uncovered loans | [1] | 1,452,290 | 1,426,012 | ||||
Residential real estate | Uncovered | |||||||
Changes in the allowance and the allocation of the allowance for loans | |||||||
Balance at beginning of period | 11,088 | 9,750 | 12,193 | 7,708 | |||
Transfer in from covered | 34 | 34 | |||||
Provision (benefit) for loan and lease losses | (280) | 1,943 | 379 | 5,502 | |||
Gross charge-offs | (836) | (1,597) | (4,054) | (4,414) | |||
Recoveries | 1,819 | 800 | 3,273 | 2,100 | |||
Net (charge-offs) recoveries | 983 | (797) | (781) | (2,314) | |||
Ending allowance for loan losses | 11,825 | 10,896 | 11,825 | 10,896 | |||
Allowance for loan losses: | |||||||
Individually evaluated for impairment | 1,466 | 1,110 | |||||
Collectively evaluated for impairment | 5,221 | 4,850 | |||||
Allowance for loan losses | 11,088 | 9,750 | 12,193 | 7,708 | 11,825 | 12,193 | |
Balance of loans: | |||||||
Individually evaluated for impairment | 19,964 | 18,584 | |||||
Collectively evaluated for impairment | 1,216,161 | 1,167,905 | |||||
Total uncovered loans | 1,452,290 | 1,426,012 | |||||
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 | 6,233 | ||||||
Ending allowance for loan losses | 5,138 | 5,138 | |||||
Allowance for loan losses: | |||||||
Allowance for loan losses | 5,138 | 6,233 | 5,138 | 6,233 | |||
Balance of loans: | |||||||
Total uncovered loans | 216,165 | 239,523 | |||||
Commercial real estate | |||||||
Balance of loans: | |||||||
Total uncovered loans | 1,484,421 | 1,310,938 | |||||
Commercial real estate | Uncovered | |||||||
Changes in the allowance and the allocation of the allowance for loans | |||||||
Balance at beginning of period | 12,182 | 7,846 | 11,128 | 4,267 | |||
Transfer in from covered | 2,778 | 2,778 | |||||
Provision (benefit) for loan and lease losses | 335 | 3,176 | 382 | 9,100 | |||
Gross charge-offs | (864) | (1,783) | (5,411) | (6,612) | |||
Recoveries | 1,538 | 1,017 | 7,092 | 3,501 | |||
Net (charge-offs) recoveries | 674 | (766) | 1,681 | (3,111) | |||
Ending allowance for loan losses | 15,969 | 10,256 | 15,969 | 10,256 | |||
Allowance for loan losses: | |||||||
Individually evaluated for impairment | 2,225 | 1,276 | |||||
Collectively evaluated for impairment | 4,881 | 4,623 | |||||
Allowance for loan losses | 12,182 | 7,846 | 11,128 | 4,267 | 15,969 | 11,128 | |
Balance of loans: | |||||||
Individually evaluated for impairment | 31,913 | 13,565 | |||||
Collectively evaluated for impairment | 1,242,026 | 1,107,225 | |||||
Total uncovered loans | 1,484,421 | 1,310,938 | |||||
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 | 5,229 | ||||||
Ending allowance for loan losses | 8,863 | 8,863 | |||||
Allowance for loan losses: | |||||||
Allowance for loan losses | 8,863 | 5,229 | 8,863 | 5,229 | |||
Balance of loans: | |||||||
Total uncovered loans | 210,482 | 190,148 | |||||
Commercial and industrial | |||||||
Balance of loans: | |||||||
Total uncovered loans | 1,196,717 | 869,477 | |||||
Commercial and industrial | Uncovered | |||||||
Changes in the allowance and the allocation of the allowance for loans | |||||||
Balance at beginning of period | 10,745 | 5,140 | 7,835 | 3,404 | |||
Transfer in from covered | 398 | 398 | |||||
Provision (benefit) for loan and lease losses | 3,241 | 2,363 | 6,607 | 4,124 | |||
Gross charge-offs | (375) | (826) | (2,377) | (1,452) | |||
Recoveries | 195 | 79 | 1,741 | 680 | |||
Net (charge-offs) recoveries | (180) | (747) | (636) | (772) | |||
Ending allowance for loan losses | 14,204 | 6,756 | 14,204 | 6,756 | |||
Allowance for loan losses: | |||||||
Individually evaluated for impairment | 817 | 982 | |||||
Collectively evaluated for impairment | 12,387 | 5,968 | |||||
Allowance for loan losses | 10,745 | 5,140 | 7,835 | 3,404 | 14,204 | 7,835 | |
Balance of loans: | |||||||
Individually evaluated for impairment | 13,374 | 2,799 | |||||
Collectively evaluated for impairment | 1,162,628 | 851,179 | |||||
Total uncovered loans | 1,196,717 | 869,477 | |||||
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 | 885 | ||||||
Ending allowance for loan losses | 1,000 | 1,000 | |||||
Allowance for loan losses: | |||||||
Allowance for loan losses | 1,000 | 885 | 1,000 | 885 | |||
Balance of loans: | |||||||
Total uncovered loans | 20,715 | 15,499 | |||||
Real estate construction | |||||||
Balance of loans: | |||||||
Total uncovered loans | [1] | 217,035 | 131,686 | ||||
Real estate construction | Uncovered | |||||||
Changes in the allowance and the allocation of the allowance for loans | |||||||
Balance at beginning of period | 1,448 | 1,398 | 1,599 | 2,027 | |||
Transfer in from covered | 338 | 338 | |||||
Provision (benefit) for loan and lease losses | 41 | 178 | (88) | (1,306) | |||
Gross charge-offs | (57) | (210) | (364) | (319) | |||
Recoveries | 374 | 0 | 659 | 964 | |||
Net (charge-offs) recoveries | 317 | (210) | 295 | 645 | |||
Ending allowance for loan losses | 2,144 | 1,366 | 2,144 | 1,366 | |||
Allowance for loan losses: | |||||||
Individually evaluated for impairment | 103 | 0 | |||||
Collectively evaluated for impairment | 711 | 649 | |||||
Allowance for loan losses | 1,448 | 1,398 | 1,599 | 2,027 | 2,144 | 1,599 | |
Balance of loans: | |||||||
Individually evaluated for impairment | 530 | 174 | |||||
Collectively evaluated for impairment | 209,658 | 123,203 | |||||
Total uncovered loans | 217,035 | 131,686 | |||||
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 | 950 | ||||||
Ending allowance for loan losses | 1,330 | 1,330 | |||||
Allowance for loan losses: | |||||||
Allowance for loan losses | 1,330 | 950 | 1,330 | 950 | |||
Balance of loans: | |||||||
Total uncovered loans | 6,847 | 8,309 | |||||
Consumer | |||||||
Balance of loans: | |||||||
Total uncovered loans | 164,496 | 164,524 | |||||
Consumer | Uncovered | |||||||
Changes in the allowance and the allocation of the allowance for loans | |||||||
Balance at beginning of period | 1,103 | 226 | 1,064 | 340 | |||
Transfer in from covered | 31 | 31 | |||||
Provision (benefit) for loan and lease losses | 329 | 124 | 867 | 7 | |||
Gross charge-offs | (631) | (55) | (1,210) | (179) | |||
Recoveries | 106 | 323 | 186 | 450 | |||
Net (charge-offs) recoveries | (525) | 268 | (1,024) | 271 | |||
Ending allowance for loan losses | 938 | 618 | 938 | 618 | |||
Allowance for loan losses: | |||||||
Individually evaluated for impairment | 65 | 82 | |||||
Collectively evaluated for impairment | 773 | 820 | |||||
Allowance for loan losses | 1,103 | $ 226 | 1,064 | $ 340 | 938 | 1,064 | |
Balance of loans: | |||||||
Individually evaluated for impairment | 499 | 472 | |||||
Collectively evaluated for impairment | 154,298 | 161,663 | |||||
Total uncovered loans | 164,496 | 164,524 | |||||
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 | 162 | ||||||
Ending allowance for loan losses | 100 | 100 | |||||
Allowance for loan losses: | |||||||
Allowance for loan losses | $ 100 | $ 162 | 100 | 162 | |||
Balance of loans: | |||||||
Total uncovered loans | $ 9,699 | $ 2,389 | |||||
[1] | Amounts represent loans for which the Company has elected the fair value option. See Note 3. |
ALLOWANCE FOR LOAN LOSSES (De73
ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)contract | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | $ 21,353 | |||||
Ending allowance for loan losses | $ 10,757 | 10,757 | ||||
Allowance for loan losses: | ||||||
Allowance for loan losses | 10,757 | $ 21,353 | $ 10,757 | $ 21,353 | ||
Balance of loans: | ||||||
Total loans, covered | 186,629 | 346,490 | ||||
Number of FDIC loss share agreements (in contracts) | contract | 4 | |||||
Covered loans | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 16,340 | $ 32,743 | $ 21,353 | $ 40,381 | ||
Transfer out to uncovered | (3,579) | (3,579) | ||||
Provision (benefit) for loan and lease losses | (2,966) | (6,275) | (12,767) | (16,094) | ||
Gross charge-offs | (1,474) | (4,332) | (9,756) | (12,410) | ||
Recoveries | 2,436 | 3,632 | 15,506 | 13,891 | ||
Net (charge-offs) recoveries | 962 | (700) | 5,750 | 1,481 | ||
Ending allowance for loan losses | 10,757 | 25,768 | 10,757 | 25,768 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 791 | 1,803 | ||||
Collectively evaluated for impairment | 127 | 277 | ||||
Allowance for loan losses | 16,340 | 32,743 | 21,353 | 40,381 | 10,757 | 21,353 |
Balance of loans: | ||||||
Individually evaluated for impairment | 13,102 | 30,129 | ||||
Collectively evaluated for impairment | 17,772 | 27,324 | ||||
Total loans, covered | 186,629 | 346,490 | ||||
Covered loans | Accounted for under ASC 310-30 | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 19,273 | |||||
Ending allowance for loan losses | 9,839 | 9,839 | ||||
Allowance for loan losses: | ||||||
Allowance for loan losses | 9,839 | 19,273 | 9,839 | 19,273 | ||
Balance of loans: | ||||||
Total loans, covered | 155,755 | 289,037 | ||||
Residential real estate | Covered loans | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 4,096 | 5,312 | 3,981 | 4,696 | ||
Transfer out to uncovered | (34) | (34) | ||||
Provision (benefit) for loan and lease losses | (238) | (1,412) | (87) | (629) | ||
Gross charge-offs | (218) | (371) | (694) | (1,646) | ||
Recoveries | 167 | 558 | 607 | 1,666 | ||
Net (charge-offs) recoveries | (51) | 187 | (87) | 20 | ||
Ending allowance for loan losses | 3,773 | 4,087 | 3,773 | 4,087 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 448 | 417 | ||||
Collectively evaluated for impairment | 87 | 123 | ||||
Allowance for loan losses | 4,096 | 5,312 | 3,981 | 4,696 | 3,773 | 3,981 |
Balance of loans: | ||||||
Individually evaluated for impairment | 5,195 | 4,738 | ||||
Collectively evaluated for impairment | 13,549 | 16,973 | ||||
Total loans, covered | 90,371 | 108,226 | ||||
Residential real estate | Covered loans | Accounted for under ASC 310-30 | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 3,441 | |||||
Ending allowance for loan losses | 3,238 | 3,238 | ||||
Allowance for loan losses: | ||||||
Allowance for loan losses | 3,238 | 3,441 | 3,238 | 3,441 | ||
Balance of loans: | ||||||
Total loans, covered | 71,627 | 86,515 | ||||
Commercial real estate | Covered loans | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 9,166 | 21,275 | 13,663 | 26,394 | ||
Transfer out to uncovered | (2,778) | (2,778) | ||||
Provision (benefit) for loan and lease losses | (1,413) | (3,191) | (10,113) | (11,030) | ||
Gross charge-offs | (861) | (3,106) | (5,449) | (6,301) | ||
Recoveries | 985 | 1,585 | 9,776 | 7,500 | ||
Net (charge-offs) recoveries | 124 | (1,521) | 4,327 | 1,199 | ||
Ending allowance for loan losses | 5,099 | 16,563 | 5,099 | 16,563 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 302 | 1,277 | ||||
Collectively evaluated for impairment | 7 | 57 | ||||
Allowance for loan losses | 9,166 | 21,275 | 13,663 | 26,394 | 5,099 | 13,663 |
Balance of loans: | ||||||
Individually evaluated for impairment | 5,489 | 22,385 | ||||
Collectively evaluated for impairment | 938 | 3,391 | ||||
Total loans, covered | 77,108 | 186,662 | ||||
Commercial real estate | Covered loans | Accounted for under ASC 310-30 | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 12,329 | |||||
Ending allowance for loan losses | 4,790 | 4,790 | ||||
Allowance for loan losses: | ||||||
Allowance for loan losses | 4,790 | 12,329 | 4,790 | 12,329 | ||
Balance of loans: | ||||||
Total loans, covered | 70,681 | 160,886 | ||||
Commercial and industrial | Covered loans | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 2,093 | 4,540 | 2,577 | 7,227 | ||
Transfer out to uncovered | (398) | (398) | ||||
Provision (benefit) for loan and lease losses | (1,132) | (1,132) | (2,690) | (3,633) | ||
Gross charge-offs | (392) | (565) | (2,483) | (3,092) | ||
Recoveries | 1,138 | 1,067 | 4,303 | 3,408 | ||
Net (charge-offs) recoveries | 746 | 502 | 1,820 | 316 | ||
Ending allowance for loan losses | 1,309 | 3,910 | 1,309 | 3,910 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 41 | 109 | ||||
Collectively evaluated for impairment | 33 | 89 | ||||
Allowance for loan losses | 2,093 | 4,540 | 2,577 | 7,227 | 1,309 | 2,577 |
Balance of loans: | ||||||
Individually evaluated for impairment | 1,882 | 2,324 | ||||
Collectively evaluated for impairment | 3,285 | 6,572 | ||||
Total loans, covered | 13,896 | 32,648 | ||||
Commercial and industrial | Covered loans | Accounted for under ASC 310-30 | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 2,379 | |||||
Ending allowance for loan losses | 1,235 | 1,235 | ||||
Allowance for loan losses: | ||||||
Allowance for loan losses | 1,235 | 2,379 | 1,235 | 2,379 | ||
Balance of loans: | ||||||
Total loans, covered | 8,729 | 23,752 | ||||
Real estate construction | Covered loans | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 954 | 1,519 | 1,086 | 1,984 | ||
Transfer out to uncovered | (338) | (338) | ||||
Provision (benefit) for loan and lease losses | (70) | (500) | 256 | (678) | ||
Gross charge-offs | (3) | (219) | (965) | (1,223) | ||
Recoveries | 29 | 352 | 533 | 1,069 | ||
Net (charge-offs) recoveries | 26 | 133 | (432) | (154) | ||
Ending allowance for loan losses | 572 | 1,152 | 572 | 1,152 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 7 | ||||
Allowance for loan losses | 954 | 1,519 | 1,086 | 1,984 | 572 | 1,086 |
Balance of loans: | ||||||
Individually evaluated for impairment | 534 | 670 | ||||
Collectively evaluated for impairment | 0 | 304 | ||||
Total loans, covered | 5,149 | 9,389 | ||||
Real estate construction | Covered loans | Accounted for under ASC 310-30 | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 1,079 | |||||
Ending allowance for loan losses | 572 | 572 | ||||
Allowance for loan losses: | ||||||
Allowance for loan losses | 572 | 1,079 | 572 | 1,079 | ||
Balance of loans: | ||||||
Total loans, covered | 4,615 | 8,415 | ||||
Consumer | Covered loans | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 31 | 97 | 46 | 80 | ||
Transfer out to uncovered | (31) | (31) | ||||
Provision (benefit) for loan and lease losses | (113) | (40) | (133) | (124) | ||
Gross charge-offs | 0 | (71) | (165) | (148) | ||
Recoveries | 117 | 70 | 287 | 248 | ||
Net (charge-offs) recoveries | 117 | (1) | 122 | 100 | ||
Ending allowance for loan losses | 4 | 56 | 4 | 56 | ||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 1 | ||||
Allowance for loan losses | 31 | $ 97 | 46 | $ 80 | 4 | 46 |
Balance of loans: | ||||||
Individually evaluated for impairment | 2 | 12 | ||||
Collectively evaluated for impairment | 0 | 84 | ||||
Total loans, covered | 105 | 9,565 | ||||
Consumer | Covered loans | Accounted for under ASC 310-30 | ||||||
Changes in the allowance and the allocation of the allowance for loans | ||||||
Balance at beginning of period | 45 | |||||
Ending allowance for loan losses | 4 | 4 | ||||
Allowance for loan losses: | ||||||
Allowance for loan losses | $ 4 | $ 45 | 4 | 45 | ||
Balance of loans: | ||||||
Total loans, covered | $ 103 | $ 9,469 |
ACQUIRED LOANS AND LOSS SHARE74
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
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 | $ 27,269 | $ 27,269 | $ 26,905 | ||
Change in carrying amount of accretable discount | |||||
Balance at beginning of period | 260,064 | $ 297,420 | 277,058 | $ 302,287 | |
Additions due to acquisitions | 0 | 0 | 5,268 | 32,764 | |
Discount accretion | (17,702) | (22,931) | (57,908) | (69,938) | |
Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations | 16,083 | 31,988 | 67,156 | 72,895 | |
Other activity, net | (16,380) | (15,980) | (49,509) | (47,511) | |
Balance at end of period | 242,065 | 290,497 | 242,065 | 290,497 | |
Expected cash flows for loans | |||||
Identified improvement in the cash flow expectations | 16,100 | 32,000 | 67,200 | 72,900 | |
Benefit for loan losses - covered: | |||||
Total benefit for loan losses-covered | (2,966) | (6,275) | (12,767) | (16,094) | |
Less: FDIC loss share income: | |||||
Total loss sharing income (expense) due to provision for loan losses-covered | (1,841) | (2,802) | (9,123) | (6,765) | |
Net (increase) decrease to income before taxes: | |||||
Net (increase) decrease to income before taxes | (1,125) | (3,473) | (3,644) | (9,329) | |
Accounted for under ASC 310-30 | |||||
Expected cash flows for loans | |||||
Contractual cash flows | 1,085,498 | 1,085,498 | 1,281,482 | ||
Non-accretable difference | (223,770) | (223,770) | (259,519) | ||
Accretable yield | (242,065) | (242,065) | (277,058) | ||
Loans accounted for under ASC 310-30 | 619,663 | 619,663 | 744,905 | ||
Benefit for loan losses - covered: | |||||
Net impairment (benefit) recorded as a result of re-estimation of cash flows on loans | 24 | (1,329) | 2,962 | 1,036 | |
Less: FDIC loss share income: | |||||
Income (expense) recorded as a result of re-estimation of cash flows on loans | (40) | 176 | 1,002 | 3,680 | |
Net (increase) decrease to income before taxes: | |||||
Net (income) expense recorded as a result of re-estimation of cash flows on loans | 64 | (1,505) | 1,960 | (2,644) | |
Cash flow improvements related to covered loans | 3,600 | 17,400 | 20,400 | 33,900 | |
Accounted for under ASC 310-20 and ASC 310-40 | |||||
Benefit for loan losses - covered: | |||||
Additional benefit recorded, net of charge-offs, for covered loans | (2,990) | (4,946) | (15,729) | (17,130) | |
Less: FDIC loss share income: | |||||
Income (expense) recorded, to offset benefit, for covered loans | (1,801) | (2,978) | (10,125) | (10,445) | |
Net (increase) decrease to income before taxes: | |||||
Net (income) expense recorded, for covered loans | (1,189) | $ (1,968) | (5,604) | $ (6,685) | |
CF Bancorp | |||||
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | |||||
Estimated FDIC clawback liability | 24,600 | 24,600 | 22,600 | ||
First Banking Center | |||||
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | |||||
Estimated FDIC clawback liability | $ 2,700 | $ 2,700 | 4,300 | ||
Peoples State Bank | |||||
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING | |||||
Estimated FDIC clawback liability | $ 4 |
ACQUIRED LOANS AND LOSS SHARE75
ACQUIRED LOANS AND LOSS SHARE ACCOUNTING (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
FDIC Indemnification Asset | ||||
Balance at beginning of period | $ 36,997 | $ 102,694 | $ 67,026 | $ 131,861 |
Accretion | (4,366) | (6,663) | (22,164) | (18,887) |
Sales and write-downs of other real estate owned (covered) | (17) | (88) | (845) | (841) |
Net effect of change in expected cash flows on covered assets | (1,095) | (5,484) | (2,295) | (13,639) |
Reimbursements requested from FDIC (reclassification to FDIC receivable) | (968) | (8,018) | (11,171) | (16,053) |
Balance at the end of the period | 30,551 | 82,441 | 30,551 | 82,441 |
FDIC Receivable | ||||
Balance at beginning of period | 5,543 | 7,198 | 6,062 | 7,783 |
Sales and write-downs of other real estate owned (covered) | (511) | 233 | (495) | (14) |
Reimbursements requested from FDIC (reclassification to FDIC receivable) | 968 | 8,018 | 11,171 | 16,053 |
Decrease due to recoveries net of additional claimable expenses incurred | (2,794) | (269) | (10,412) | (4,588) |
Claim payments received from the FDIC | (588) | (2,307) | (3,708) | (6,361) |
Balance at the end of the period | $ 2,618 | $ 12,873 | $ 2,618 | $ 12,873 |
OTHER REAL ESTATE OWNED AND R76
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in other real estate owned | ||||||
Balance at the beginning of the period | $ 38,908,000 | $ 29,955,000 | ||||
Additions due to acquisitions | 1,260,000 | 30,878,000 | ||||
Additions due to the adoption of ASU 2014-04 | 540,000 | |||||
Transfers in | 22,190,000 | 18,878,000 | ||||
Transfer from covered to uncovered (3) | 0 | |||||
Disposals | (32,555,000) | (30,305,000) | ||||
Write-downs | (2,627,000) | (4,466,000) | ||||
Balance at the end of the period | $ 27,716,000 | $ 44,940,000 | 27,716,000 | 44,940,000 | ||
Changes in repossessed assets | ||||||
Other real estate owned and repossessed assets acquired in accordance with ASU 2014-04 | $ 684,000 | |||||
Real estate properties for which formal foreclosure proceedings are in process | 9,600,000 | |||||
Income and expenses related to other real estate owned | ||||||
Net gain (loss) on sale | 3,004,000 | 2,427,000 | 5,824,000 | 6,660,000 | ||
Write-downs | (680,000) | (2,062,000) | (2,627,000) | (4,466,000) | ||
Net operating expenses | (732,000) | (838,000) | (1,740,000) | (2,456,000) | ||
Total | 1,592,000 | (473,000) | 1,457,000 | (262,000) | ||
Uncovered | ||||||
Changes in other real estate owned | ||||||
Balance at the beginning of the period | 28,247,000 | 18,384,000 | ||||
Additions due to acquisitions | 1,260,000 | 30,878,000 | ||||
Additions due to the adoption of ASU 2014-04 | 455,000 | |||||
Transfers in | 15,205,000 | 10,889,000 | ||||
Transfer from covered to uncovered (3) | 2,249,000 | |||||
Disposals | (23,486,000) | (24,116,000) | ||||
Write-downs | (1,837,000) | (2,861,000) | ||||
Balance at the end of the period | 22,093,000 | 33,174,000 | 22,093,000 | 33,174,000 | ||
Income and expenses related to other real estate owned | ||||||
Net gain (loss) on sale | 2,949,000 | 2,364,000 | 6,122,000 | 6,366,000 | ||
Write-downs | (526,000) | (1,361,000) | (1,837,000) | (2,861,000) | ||
Net operating expenses | (665,000) | (778,000) | (1,555,000) | (2,323,000) | ||
Total | 1,758,000 | 225,000 | 2,730,000 | 1,182,000 | ||
Covered | ||||||
Changes in other real estate owned | ||||||
Balance at the beginning of the period | 10,661,000 | 11,571,000 | ||||
Additions due to acquisitions | 0 | 0 | ||||
Additions due to the adoption of ASU 2014-04 | 85,000 | |||||
Transfers in | 6,985,000 | 7,989,000 | ||||
Transfer from covered to uncovered (3) | (2,249,000) | |||||
Disposals | (9,069,000) | (6,189,000) | ||||
Write-downs | (790,000) | (1,605,000) | ||||
Balance at the end of the period | 5,623,000 | 11,766,000 | 5,623,000 | 11,766,000 | ||
Income and expenses related to other real estate owned | ||||||
Net gain (loss) on sale | 55,000 | 63,000 | (298,000) | 294,000 | ||
Write-downs | (154,000) | (701,000) | (790,000) | (1,605,000) | ||
Net operating expenses | (67,000) | (60,000) | (185,000) | (133,000) | ||
Total | (166,000) | (698,000) | (1,273,000) | (1,444,000) | ||
Repossessed Assets | ||||||
Changes in repossessed assets | ||||||
Balance at the beginning of the period | 9,835,000 | 27,000 | ||||
Transfers in | 1,671,000 | $ 357,000 | ||||
Capitalized expenditures | 3,701,000 | |||||
Payments received | (3,989,000) | |||||
Disposals | (725,000) | (292,000) | ||||
Write-downs of repossessed assets | (786,000) | 0 | ||||
Change in valuation allowance | (3,870,000) | |||||
Balance at the end of the period | 5,837,000 | 92,000 | 5,837,000 | 92,000 | ||
Repossessed assets valuation allowance reconciliation | ||||||
Balance at the beginning of the period | 3,062,000 | 460,000 | ||||
Provision for valuation allowance | 1,268,000 | 3,870,000 | ||||
Balance at the end of the period | 4,330,000 | 0 | 4,330,000 | 0 | ||
Repossessed assets valuation allowance | 3,062,000 | 0 | 460,000 | 0 | $ 4,330,000 | $ 0 |
Income and expenses related to repossessed assets | ||||||
Net gain (loss) on sale | (53,000) | (4,000) | (93,000) | (8,000) | ||
Write - downs of repossessed assets expense | (318,000) | (786,000) | ||||
Provision for valuation allowance | (1,268,000) | (3,870,000) | ||||
Net operating expenses | (169,000) | (28,000) | (232,000) | (77,000) | ||
Total | $ (1,808,000) | $ (32,000) | $ (4,981,000) | $ (85,000) |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Feb. 06, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Net carrying amount of CDIs | ||||||
Net carrying amount | $ 13,470 | $ 13,470 | $ 13,035 | |||
Amortization expense recognized | $ 1,975 | $ 2,140 | ||||
FHC | ||||||
Net carrying amount of CDIs | ||||||
Increase in goodwill | $ 3,500 | |||||
Core deposit | ||||||
Intangible assets | ||||||
Estimated remaining average useful life | 6 years 10 months 24 days | |||||
Net carrying amount of CDIs | ||||||
Gross carrying amount | 23,068 | $ 23,068 | 20,658 | |||
Accumulated amortization | (9,598) | (9,598) | (7,623) | |||
Net carrying amount | 13,470 | 13,470 | $ 13,035 | |||
Amortization expense recognized | $ 662 | $ 680 | $ 2,000 | $ 2,100 | ||
Core deposit | FHC | ||||||
Intangible assets | ||||||
Estimated remaining average useful life | 10 years |
LOAN SERVICING RIGHTS (Details)
LOAN SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | $ 58,894 | $ 74,104 | $ 70,598 | $ 78,603 |
Additions due to acquisition | 767 | |||
Additions from loans sold with servicing retained | 2,759 | 2,298 | 8,607 | 6,046 |
Reduction from loans and servicing rights sold | (12,702) | |||
Changes in fair value due to reductions from loans paid off during the period | (2,036) | (1,846) | (5,948) | (4,455) |
Changes due to valuation inputs or assumptions | (3,831) | (176) | (4,769) | (6,581) |
Fair value, end of period | 55,786 | 74,380 | 55,786 | 74,380 |
Principal balance of loans serviced | 6,017,508 | 7,329,500 | 6,017,508 | 7,329,500 |
Principal balance of loans sold that are serviced | 1,200,000 | |||
Commercial real estate | ||||
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | 580 | 837 | 691 | 368 |
Additions due to acquisition | 767 | |||
Additions from loans sold with servicing retained | 0 | 0 | 0 | 0 |
Reduction from loans and servicing rights sold | 0 | |||
Changes in fair value due to reductions from loans paid off during the period | (44) | (57) | (97) | (125) |
Changes due to valuation inputs or assumptions | (27) | (18) | (85) | (248) |
Fair value, end of period | 509 | 762 | 509 | 762 |
Principal balance of loans serviced | 182,450 | 222,262 | 182,450 | 222,262 |
Agricultural | ||||
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | 0 | 876 | 0 | 962 |
Additions due to acquisition | 0 | |||
Additions from loans sold with servicing retained | 0 | 2 | 0 | 125 |
Reduction from loans and servicing rights sold | 0 | |||
Changes in fair value due to reductions from loans paid off during the period | 0 | (83) | 0 | (220) |
Changes due to valuation inputs or assumptions | 0 | (24) | 0 | (96) |
Fair value, end of period | 0 | 771 | 0 | 771 |
Principal balance of loans serviced | 0 | 37,301 | 0 | 37,301 |
Mortgage | ||||
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | 58,314 | 72,391 | 69,907 | 77,273 |
Additions due to acquisition | 0 | |||
Additions from loans sold with servicing retained | 2,759 | 2,296 | 8,607 | 5,921 |
Reduction from loans and servicing rights sold | (12,702) | |||
Changes in fair value due to reductions from loans paid off during the period | (1,992) | (1,706) | (5,851) | (4,110) |
Changes due to valuation inputs or assumptions | (3,804) | (134) | (4,684) | (6,237) |
Fair value, end of period | 55,277 | 72,847 | 55,277 | 72,847 |
Principal balance of loans serviced | $ 5,835,058 | $ 7,069,937 | $ 5,835,058 | $ 7,069,937 |
LOAN SERVICING RIGHTS (Details
LOAN SERVICING RIGHTS (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value | |||||
Loan servicing fee income | $ 2,600,000 | $ 3,100,000 | $ 7,700,000 | $ 10,400,000 | |
Commercial Real Estate | |||||
Fair Value | |||||
WA discount rate (as a percent) | 19.54% | 19.48% | |||
WA cost to service/per year | $ 470 | $ 470 | |||
WA float range (as a percent) | 0.56% | 0.56% | |||
Commercial Real Estate | Minimum | |||||
Fair Value | |||||
Prepayment speed (as a percent) | 6.68% | 6.41% | |||
Commercial Real Estate | Maximum | |||||
Fair Value | |||||
Prepayment speed (as a percent) | 50.00% | 50.00% | |||
Mortgage | |||||
Fair Value | |||||
WA discount rate (as a percent) | 9.16% | 9.14% | |||
WA cost to service/per year | $ 61 | $ 61 | |||
WA ancillary income/per year | $ 35 | $ 35 | |||
Mortgage | Minimum | |||||
Fair Value | |||||
Prepayment speed (as a percent) | 3.62% | 3.63% | |||
WA float range (as a percent) | 1.18% | 1.16% | |||
Mortgage | Maximum | |||||
Fair Value | |||||
Prepayment speed (as a percent) | 41.76% | 40.07% | |||
WA float range (as a percent) | 1.68% | 1.74% |
DERIVATIVE INSTRUMENTS AND BA80
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount of ineffective interest rate swaps included in net income | $ 0 | |
Derivative instruments | ||
Notional Amount | 617,729,000 | $ 320,001,000 |
Gross Derivative Assets | 8,390,000 | 3,077,000 |
Gross Derivative Liabilities | 7,352,000 | 2,502,000 |
Credit valuation adjustments for counterparty credit risk | 260,000 | 103,000 |
Designated as hedges | ||
Derivative instruments | ||
Notional Amount | 22,000,000 | 12,000,000 |
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 586,000 | 222,000 |
Designated as hedges | Interest rate swaps | ||
Derivative instruments | ||
Notional Amount | 22,000,000 | 12,000,000 |
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 586,000 | 222,000 |
Not designated as hedging | ||
Derivative instruments | ||
Notional Amount | 595,729,000 | 308,001,000 |
Gross Derivative Assets | 8,390,000 | 3,077,000 |
Gross Derivative Liabilities | 6,766,000 | 2,280,000 |
Not designated as hedging | Forward contracts related to mortgage loans to be delivered for sale | ||
Derivative instruments | ||
Notional Amount | 165,899,000 | 114,828,000 |
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 1,082,000 | 803,000 |
Not designated as hedging | Interest rate lock commitments | ||
Derivative instruments | ||
Notional Amount | 112,057,000 | 67,817,000 |
Gross Derivative Assets | 2,740,000 | 1,489,000 |
Gross Derivative Liabilities | 0 | 0 |
Not designated as hedging | Customer-initiated derivatives | ||
Derivative instruments | ||
Notional Amount | 317,773,000 | 125,356,000 |
Gross Derivative Assets | 5,650,000 | 1,588,000 |
Gross Derivative Liabilities | $ 5,684,000 | $ 1,477,000 |
DERIVATIVE INSTRUMENTS AND BA81
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative instruments | ||||
Net gains (losses) relating to derivative instruments | $ (2,223) | $ (1,312) | $ (508) | $ (10,065) |
Forward contracts related to mortgage loans to be delivered for sale | Net gain on sales of loans | ||||
Derivative instruments | ||||
Net gains (losses) relating to derivative instruments | (3,128) | (463) | (1,917) | (10,372) |
Interest rate lock commitments | Net gain on sales of loans | ||||
Derivative instruments | ||||
Net gains (losses) relating to derivative instruments | 711 | (853) | 1,253 | 284 |
Customer-initiated derivatives | Other noninterest income | ||||
Derivative instruments | ||||
Net gains (losses) relating to derivative instruments | $ 194 | $ 4 | $ 156 | $ 23 |
DERIVATIVE INSTRUMENTS AND BA82
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 3) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative instruments | ||||
Amount of gain (loss) recognized in other non interest income (Ineffective portion) | $ 0 | |||
Interest rate swaps | Designated as hedges | Cash flow hedges | ||||
Derivative instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (Effective portion) | $ (893,000) | $ 0 | (660,000) | $ 0 |
Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion) | (104,000) | 0 | (296,000) | 0 |
Amount of gain (loss) recognized in other non interest income (Ineffective portion) | 0 | $ 0 | 0 | $ 0 |
Amount of gain (loss) expected to be reclassified in the next twelve months | $ 366,000 | $ 366,000 |
DERIVATIVE INSTRUMENTS AND BA83
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 4) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting derivative assets | ||
Gross amounts recognized | $ 8,390 | $ 3,077 |
Offsetting derivative liabilities | ||
Gross amounts recognized | 7,352 | 2,502 |
Interest rate swaps and customer-initiated derivatives | ||
Offsetting derivative assets | ||
Gross amounts recognized | 5,650 | 1,588 |
Financial instruments | 0 | 0 |
Net amounts presented in the statement of financial position | 5,650 | 1,588 |
Gross amounts not offset in the statement of financial position | ||
Financial Instruments | (5,650) | (1,588) |
Collateral (received)/posted | 5,140 | 1,689 |
Net Amount | 5,140 | 1,689 |
Offsetting derivative liabilities | ||
Gross amounts recognized | 6,270 | 1,699 |
Financial instruments | 0 | 0 |
Net amounts presented in the statement of financial position | 6,270 | 1,699 |
Gross amounts not offset in the statement of financial position | ||
Financial Instruments | (5,650) | (1,588) |
Collateral (received)/posted | 620 | 111 |
Net Amount | $ 0 | $ 0 |
COMMITMENTS, CONTINGENCIES AN84
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Allowance for credit losses on lending-related commitments | $ 815 | $ 539 |
Contingencies and Guarantees | ||
Total commitments | 1,271,575 | 1,039,626 |
Fixed Rate | ||
Contingencies and Guarantees | ||
Total commitments | 642,935 | 572,067 |
Variable Rate | ||
Contingencies and Guarantees | ||
Total commitments | 628,640 | 467,559 |
Commitments to extend credit | ||
Contingencies and Guarantees | ||
Total commitments | 1,204,070 | 966,124 |
Commitments to extend credit | Fixed Rate | ||
Contingencies and Guarantees | ||
Total commitments | 578,956 | 502,762 |
Commitments to extend credit | Variable Rate | ||
Contingencies and Guarantees | ||
Total commitments | 625,114 | 463,362 |
Standby letters of credit | ||
Contingencies and Guarantees | ||
Total commitments standby letters of credit | 67,505 | 73,502 |
Standby letters of credit | Fixed Rate | ||
Contingencies and Guarantees | ||
Total commitments standby letters of credit | 63,979 | 69,305 |
Standby letters of credit | Variable Rate | ||
Contingencies and Guarantees | ||
Total commitments standby letters of credit | $ 3,526 | $ 4,197 |
COMMITMENTS, CONTINGENCIES AN85
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Contingencies and Guarantees | ||
Warranty liabilities | $ 1,800 | $ 4,000 |
Performance guarantee | ||
Contingencies and Guarantees | ||
Outstanding balance of loans | 24,600 | 39,800 |
Maximum potential amount of undiscounted future payments | 18,800 | 31,600 |
Recourse liability | 170 | 355 |
Standby letters of credit | ||
Contingencies and Guarantees | ||
Standby letters of credit outstanding | $ 67,500 | $ 73,500 |
SHORT-TERM BORROWINGS AND LON86
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Short-term borrowings and long-term debt | |||||
Amount, short-term borrowings | $ 102,090 | $ 102,090 | $ 135,743 | ||
Amount, long-term debt | 484,981 | 484,981 | 353,972 | ||
Amount, short-term borrowings and long-term debt | $ 587,071 | $ 587,071 | $ 489,715 | ||
Weighted Average Rate, short-term borrowings (as a percent) | 1.14% | 1.14% | 0.26% | ||
Weighted Average Rate, long-term debt (as a percent) | 1.64% | 1.64% | 2.02% | ||
Weighted Average Rate, short-term borrowings and long-term debt (as a percent) | 1.55% | 1.55% | 1.53% | ||
Short-term borrowings | |||||
Amortized Cost | $ 871,192 | $ 871,192 | $ 734,674 | ||
Draw on existing line of credit | $ 20,000 | ||||
Number of warrants repurchased (in shares) | 2.5 | ||||
Aggregate purchase price | $ 19,892 | $ 0 | |||
Mortgage-backed securities | |||||
Short-term borrowings | |||||
Blanket lien arrangement | 1,100,000 | 1,100,000 | |||
Specific lien arrangement | 545,800 | 545,800 | |||
Additional maximum borrowing capacity | 623,200 | 623,200 | |||
Additional maximum borrowing capacity as limited by Board resolutions | 394,300 | 394,300 | |||
Line of Credit | |||||
Short-term borrowings | |||||
Draw on existing line of credit | 10,000 | ||||
Securities sold under agreements to repurchase: 0.05%-0.10% variable-rate notes | |||||
Short-term borrowings and long-term debt | |||||
Amount, short-term borrowings | $ 22,090 | $ 22,090 | $ 25,743 | ||
Weighted Average Rate, short-term borrowings (as a percent) | 0.10% | 0.10% | 0.10% | ||
Securities sold under agreements to repurchase: 0.05%-0.10% variable-rate notes | Minimum | |||||
Short-term borrowings and long-term debt | |||||
Interest rate (as a percent) | 0.05% | 0.05% | |||
Securities sold under agreements to repurchase: 0.05%-0.10% variable-rate notes | Maximum | |||||
Short-term borrowings and long-term debt | |||||
Interest rate (as a percent) | 0.10% | 0.10% | |||
FHLB advances fixed-rate notes | |||||
Short-term borrowings and long-term debt | |||||
Amount, short-term borrowings | $ 50,000 | $ 50,000 | $ 100,000 | ||
Amount, long-term debt | $ 414,405 | $ 414,405 | $ 286,804 | ||
Weighted Average Rate, short-term borrowings (as a percent) | 0.37% | 0.37% | 0.29% | ||
Weighted Average Rate, long-term debt (as a percent) | 1.25% | 1.25% | 1.57% | ||
Advances payable | $ 409,500 | $ 409,500 | $ 280,100 | ||
Purchase accounting premiums | $ 4,900 | $ 4,900 | 6,700 | ||
FHLB advances fixed-rate notes | Minimum | |||||
Short-term borrowings and long-term debt | |||||
Interest rate (as a percent) | 0.26% | 0.26% | |||
FHLB advances fixed-rate notes | Maximum | |||||
Short-term borrowings and long-term debt | |||||
Interest rate (as a percent) | 7.44% | 7.44% | |||
FHLB advances: 0.43% variable-rate notes | |||||
Short-term borrowings and long-term debt | |||||
Amount, short-term borrowings | $ 0 | $ 0 | $ 10,000 | ||
Weighted Average Rate, short-term borrowings (as a percent) | 0.00% | 0.00% | 0.43% | ||
Interest rate (as a percent) | 0.43% | 0.43% | |||
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 | $ 55,212 | $ 55,212 | $ 56,444 | ||
Weighted Average Rate, long-term debt (as a percent) | 4.19% | 4.19% | 4.19% | ||
Purchase accounting premiums | $ 5,200 | $ 5,200 | $ 6,400 | ||
Balance amount | 50,000 | 50,000 | 50,000 | ||
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Mortgage-backed securities | |||||
Short-term borrowings | |||||
Amortized Cost | $ 86,000 | $ 86,000 | |||
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 | $ 10,829 | $ 10,829 | $ 10,724 | ||
Weighted Average Rate, long-term debt (as a percent) | 2.56% | 2.56% | 2.48% | ||
Variable rate basis | three-month LIBOR | ||||
Balance amount | $ 15,000 | $ 15,000 | $ 15,000 | ||
Purchase accounting discounts | 4,200 | $ 4,200 | 4,300 | ||
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 | |||||
Spread on variable rate (as a percent) | 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 | |||||
Spread on variable rate (as a percent) | 2.85% | ||||
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due September 2032 (5) | |||||
Short-term borrowings and long-term debt | |||||
Amount, long-term debt | $ 4,535 | $ 4,535 | $ 0 | ||
Weighted Average Rate, long-term debt (as a percent) | 3.53% | 3.53% | 0.00% | ||
Variable rate basis | three-month LIBOR | ||||
Spread on variable rate (as a percent) | 3.25% | ||||
Balance amount | $ 5,000 | $ 5,000 | |||
Purchase accounting discounts | 465 | 465 | |||
Securities sold under agreement to repurchase | |||||
Short-term borrowings | |||||
Average daily balance | $ 25,249 | $ 136,707 | $ 21,710 | $ 97,156 | |
Average interest rate during the period (as a percent) | 0.10% | 0.14% | 0.10% | 0.12% | |
Maximum month-end balance | $ 26,703 | $ 166,925 | $ 26,703 | $ 166,925 | |
FHLB advances: | |||||
Short-term borrowings | |||||
Average daily balance | $ 164,414 | $ 82,935 | $ 71,099 | $ 40,966 | |
Average interest rate during the period (as a percent) | 0.36% | 0.19% | 0.29% | 0.80% | |
Maximum month-end balance | $ 200,000 | $ 70,000 | $ 200,000 | $ 90,000 | |
Federal funds purchased | |||||
Short-term borrowings | |||||
Average daily balance | $ 0 | $ 217 | $ 462 | $ 1,568 | |
Average interest rate during the period (as a percent) | 0.00% | 0.31% | 0.31% | 0.27% | |
Maximum month-end balance | $ 0 | $ 0 | $ 126,000 | $ 0 | |
FHLB overnight repurchase agreements: | |||||
Short-term borrowings | |||||
Average daily balance | $ 0 | $ 0 | $ 0 | $ 2,931 | |
Average interest rate during the period (as a percent) | 0.00% | 0.00% | 0.00% | 0.10% | |
Maximum month-end balance | $ 0 | $ 0 | $ 0 | $ 0 | |
FHLB collateralized advances for fixed rate notes: | |||||
Short-term borrowings | |||||
Amount of collateral for total borrowing capacity | 1,700,000 | 1,700,000 | |||
Holding Company | |||||
Short-term borrowings and long-term debt | |||||
Amount, short-term borrowings | 30,000 | 30,000 | $ 0 | ||
Amount, long-term debt | 15,364 | 15,364 | 10,724 | ||
Short-term borrowings | |||||
Aggregate purchase price | 19,892 | 0 | |||
Holding Company | Line of Credit | |||||
Short-term borrowings and long-term debt | |||||
Amount, short-term borrowings | $ 30,000 | $ 30,000 | $ 0 | ||
Weighted Average Rate, short-term borrowings (as a percent) | 3.20% | 3.20% | 0.00% | ||
Variable rate basis | one-month Libor | ||||
Spread on variable rate (as a percent) | 3.00% | ||||
Short-term borrowings | |||||
Average daily balance | $ 30,000 | $ 0 | $ 20,897 | $ 7,436 | |
Average interest rate during the period (as a percent) | 3.19% | 0.00% | 3.18% | 0.00% | |
Maximum month-end balance | $ 30,000 | $ 0 | $ 30,000 | $ 35,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amount | ||||
Tax based on federal statutory rate | $ 9,261 | $ 10,297 | $ 23,121 | $ 28,823 |
Effect of: | ||||
Tax exempt income | (719) | (521) | (1,994) | (1,723) |
State taxes, net of federal benefit | 329 | 666 | 789 | 1,135 |
Change in valuation allowance | 2,804 | 0 | 2,804 | (10,127) |
Bargain purchase gain | 0 | 0 | 0 | (14,692) |
Transaction costs | 0 | 0 | 47 | 454 |
Deferred tax benefit | (4,991) | 0 | (4,991) | 0 |
Other, net | (259) | (538) | (731) | 132 |
Income tax expense | $ 6,425 | $ 9,904 | $ 19,045 | $ 4,002 |
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) | (2.70%) | (1.80%) | (3.00%) | (2.10%) |
State taxes, net of federal benefit (as a percent) | 1.20% | 2.30% | 1.20% | 1.40% |
Change in valuation allowance (as a percent) | 10.60% | 0.00% | 4.20% | (12.30%) |
Bargain purchase gain (as a percent) | (0.00%) | (0.00%) | (0.00%) | (17.80%) |
Transaction costs (as a percent) | 0.00% | 0.00% | 0.10% | 0.50% |
Deferred tax benefit (as a percent) | (18.90%) | 0.00% | (7.60%) | 0.00% |
Other, net (as a percent) | (0.90%) | (1.80%) | (1.10%) | 0.20% |
Income tax expense (benefit) (as a percent) | 24.30% | 33.70% | 28.80% | 4.90% |
STOCK-BASED COMPENSATION STOCK-
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock issued or issuable | 9,800,000 | 9,800,000 | ||
Option shares available for grant | 1,300,000 | 1,300,000 | ||
Granted (in shares) | 0 | 35,000 | ||
Expected life (in years) | 6 years | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Weighted average fair value (in dollars per share) | $ 15.89 | |||
Total intrinsic value of stock options exercised | $ 6,500,000 | |||
Cash received from exercise of options | $ 210,000 | |||
Shares issued on stock option exercises upon receipt of cash | 35,000 | |||
Number of shares issued under the net-settlement option | 258,000 | |||
Tax benefit realized from option exercises | $ 1,800,000 | |||
Total unrecognized compensation cost related to stock options | $ 0 | 0 | ||
Total compensation expense | $ 42,000 | $ 429,000 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | 515,000 | 302,000 | 1,400,000 | 369,000 |
Total unrecognized compensation cost | 9,200,000 | $ 9,200,000 | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 4 years 1 month 6 days | |||
Employees | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Director | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Salary and Employee Benefits | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | 437,000 | 227,000 | $ 1,200,000 | 277,000 |
Professional Fee | Director | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense | $ 78,000 | $ 75,000 | $ 205,000 | $ 92,000 |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) | 9 Months Ended |
Sep. 30, 2015$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fair value of options granted (in dollars per share) | $ 4.77 |
Expected dividend yield | 0.00% |
Expected volatility | 30.02% |
Risk-free interest rate | 1.98% |
Expected life (in years) | 6 years |
STOCK-BASED COMPENSATION - Opti
STOCK-BASED COMPENSATION - Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding at the beginning of the period (in shares) | 7,958 |
Exercised (in shares) | (723) |
Outstanding at the end of the period (in shares) | 7,235 |
Options fully vested and expected to vest (in shares) | 7,235 |
Exercisable at the end of the period (in shares) | 7,235 |
Weighted Average Exercise Price per Share | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 6.96 |
Exercised (in dollars per share) | $ / shares | 6.85 |
Outstanding at the end of the period (in dollars per share) | $ / shares | 6.97 |
Options fully vested and expected to vest (in dollars per share) | $ / shares | 6.97 |
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 6.97 |
Weighted Average Remaining Contractual Life | |
Outstanding at the end of the period | 5 years 11 months 16 days |
Options fully vested and expected to vest | 5 years 11 months 16 days |
Exercisable at the end of the period | 5 years 11 months 16 days |
Aggregate Intrinsic Value | |
Outstanding at the end of the period | $ | $ 70,039 |
Options fully vested and expected to vest | $ | 70,039 |
Exercisable at the end of the period | $ | $ 70,039 |
STOCK-BASED COMPENSATION - Res
STOCK-BASED COMPENSATION - Restricted Stock Activity (Details 2) - Restricted Stock shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Shares | |
Nonvested at beginning of period (in shares) | 378 |
Granted (in shares) | 391 |
Vested (in shares) | (19) |
Forfeited (in shares) | (11) |
Nonvested at end of period (in shares) | 739 |
Weighted-Average Grant-Date Fair Value | |
Nonvested at beginning of period (in dollars per share) | $ / shares | $ 14.44 |
Granted (in dollars per share) | $ / shares | 15.10 |
Vested (in dollars per share) | $ / shares | 14.44 |
Forfeited (in dollars per share) | $ / shares | 14.95 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 14.78 |
REGULATORY CAPITAL MATTERS (Det
REGULATORY CAPITAL MATTERS (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 28, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
REGULATORY CAPITAL MATTERS | ||||||
Capital conservation buffer | 2.50% | 2.50% | ||||
Capital conservation buffer, period | 4 years | |||||
Total capital to risk-weighted assets | ||||||
Actual Amount | $ 714,836 | $ 714,836 | $ 720,552 | |||
Actual Ratio | 13.20% | 13.20% | 16.40% | |||
For Capital Adequacy Purposes Amount | $ 433,301 | $ 433,301 | $ 350,645 | |||
For Capital Adequacy Purposes Ratio | 8.00% | 8.00% | 8.00% | |||
Common equity tier 1 capital | ||||||
Actual Amount | $ 656,214 | $ 656,214 | ||||
Actual Ratio | 12.10% | 12.10% | ||||
For Capital Adequacy Purposes Amount | $ 243,732 | $ 243,732 | ||||
For Capital Adequacy Purposes Ratio | 4.50% | 4.50% | ||||
Tier 1 capital to risk-weighted assets | ||||||
Actual Amount | $ 656,214 | $ 656,214 | $ 666,035 | |||
Actual Ratio | 12.10% | 12.10% | 15.20% | |||
For Capital Adequacy Purposes Amount | $ 324,976 | $ 324,976 | $ 175,323 | |||
For Capital Adequacy Purposes Ratio | 6.00% | 6.00% | 4.00% | |||
Tier 1 leverage ratio | ||||||
Actual Amount | $ 656,214 | $ 656,214 | $ 666,035 | |||
Actual Ratio | 10.20% | 10.20% | 11.60% | |||
For Capital Adequacy Purposes Amount | $ 256,989 | $ 256,989 | $ 230,546 | |||
For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | 4.00% | |||
Dividend income from subsidiary | $ 80,000 | $ 0 | $ 95,000 | $ 25,000 | ||
Dividend declared (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.01 | ||
Subsequent Event | ||||||
Tier 1 leverage ratio | ||||||
Dividend declared (in dollars per share) | $ 0.01 | |||||
Talmer Bank and Trust | ||||||
Total capital to risk-weighted assets | ||||||
Actual Amount | $ 734,680 | $ 734,680 | $ 627,851 | |||
Actual Ratio | 13.60% | 13.60% | 16.30% | |||
For Capital Adequacy Purposes Amount | $ 432,614 | $ 432,614 | $ 308,374 | |||
For Capital Adequacy Purposes Ratio | 8.00% | 8.00% | 8.00% | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 540,768 | $ 540,768 | $ 385,468 | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% | 10.00% | |||
Common equity tier 1 capital | ||||||
Actual Amount | $ 676,058 | $ 676,058 | ||||
Actual Ratio | 12.50% | 12.50% | ||||
For Capital Adequacy Purposes Amount | $ 243,345 | $ 243,345 | ||||
For Capital Adequacy Purposes Ratio | 4.50% | 4.50% | ||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 351,499 | $ 351,499 | ||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% | ||||
Tier 1 capital to risk-weighted assets | ||||||
Actual Amount | $ 676,058 | $ 676,058 | $ 579,604 | |||
Actual Ratio | 12.50% | 12.50% | 15.00% | |||
For Capital Adequacy Purposes Amount | $ 324,461 | $ 324,461 | $ 154,187 | |||
For Capital Adequacy Purposes Ratio | 6.00% | 6.00% | 4.00% | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 432,614 | $ 432,614 | $ 231,281 | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% | 6.00% | |||
Tier 1 leverage ratio | ||||||
Actual Amount | $ 676,058 | $ 676,058 | $ 579,604 | |||
Actual Ratio | 11.30% | 11.30% | 11.60% | |||
For Capital Adequacy Purposes Amount | $ 239,862 | $ 239,862 | $ 200,128 | |||
For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | 4.00% | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 299,827 | $ 299,827 | $ 250,160 | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% | 5.00% | |||
Talmer Bank and Trust | Minimum | ||||||
Tier 1 leverage ratio | ||||||
Surplus required for declaration or payment of dividend as a percentage of capital remaining after dividend payment | 20.00% | 20.00% | ||||
Talmer West Bank | ||||||
Total capital to risk-weighted assets | ||||||
Actual Amount | $ 101,926 | |||||
Actual Ratio | 19.60% | |||||
For Capital Adequacy Purposes Amount | $ 41,628 | |||||
For Capital Adequacy Purposes Ratio | 8.00% | |||||
Tier 1 capital to risk-weighted assets | ||||||
Actual Amount | $ 95,656 | |||||
Actual Ratio | 18.40% | |||||
For Capital Adequacy Purposes Amount | $ 20,814 | |||||
For Capital Adequacy Purposes Ratio | 4.00% | |||||
Tier 1 leverage ratio | ||||||
Actual Amount | $ 95,656 | |||||
Actual Ratio | 12.40% | |||||
For Capital Adequacy Purposes Amount | $ 30,786 | |||||
For Capital Adequacy Purposes Ratio | 4.00% |
PARENT COMPANY FINANCIAL STAT93
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 329,562 | $ 253,736 | $ 298,666 | $ 375,356 |
Income tax benefit | 180,719 | 177,472 | ||
Other assets | 52,017 | 40,982 | ||
Total assets | 6,504,035 | 5,872,264 | ||
Liabilities | ||||
Short-term borrowings | 102,090 | 135,743 | ||
Long-term debt | 484,981 | 353,972 | ||
Total liabilities | 5,789,267 | 5,110,657 | ||
Shareholders’ equity | 714,768 | 761,607 | 746,652 | 617,015 |
Total liabilities and shareholders’ equity | 6,504,035 | 5,872,264 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 11,745 | 9,497 | $ 11,414 | $ 98,411 |
Investment in banking subsidiaries | 738,327 | 756,452 | ||
Income tax benefit | 9,739 | 7,975 | ||
Other assets | 1,331 | 655 | ||
Total assets | 761,142 | 774,579 | ||
Liabilities | ||||
Short-term borrowings | 30,000 | 0 | ||
Long-term debt | 15,364 | 10,724 | ||
Accrued expenses and other liabilities | 1,010 | 2,248 | ||
Total liabilities | 46,374 | 12,972 | ||
Shareholders’ equity | 714,768 | 761,607 | ||
Total liabilities and shareholders’ equity | $ 761,142 | $ 774,579 |
PARENT COMPANY FINANCIAL STAT94
PARENT COMPANY FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income | ||||
Dividend income from subsidiary | $ 80,000 | $ 0 | $ 95,000 | $ 25,000 |
Bargain purchase gain | 0 | 0 | 0 | 41,977 |
Other noninterest income | 4,017 | 4,076 | 11,720 | 12,601 |
Expenses | ||||
Salaries and employee benefits | 27,665 | 29,795 | 85,562 | 96,112 |
Professional service fees | 3,197 | 2,964 | 10,015 | 9,629 |
Insurance expense | 1,305 | 1,383 | 4,362 | 4,082 |
Marketing expense | 1,748 | 1,001 | 4,326 | 3,697 |
Interest on short-term borrowings | 350 | 122 | 638 | 330 |
Interest on long-term debt | 909 | 701 | 2,623 | 1,902 |
Other | 4,959 | 5,424 | 20,084 | 19,553 |
Income tax benefit | (6,425) | (9,904) | (19,045) | (4,002) |
Net income | 20,035 | 19,515 | 47,016 | 78,348 |
Total comprehensive income, net of tax | 23,601 | 19,369 | 48,968 | 88,431 |
Parent Company | ||||
Income | ||||
Dividend income from subsidiary | 80,000 | 0 | 95,000 | 25,000 |
Bargain purchase gain | 0 | 0 | 0 | 41,977 |
Other noninterest income | 34 | 3 | 43 | 8 |
Total income | 80,034 | 3 | 95,043 | 66,985 |
Expenses | ||||
Salaries and employee benefits | 1,602 | 1,040 | 4,494 | 6,995 |
Bank acquisition and due diligence fees | 88 | 238 | 1,243 | 2,212 |
Professional service fees | 740 | 455 | 1,608 | 1,541 |
Insurance expense | 85 | 176 | 198 | 543 |
Marketing expense | 29 | 31 | 78 | 222 |
Interest on short-term borrowings | 247 | 0 | 508 | 151 |
Interest on long-term debt | 184 | 128 | 528 | 380 |
Other | 35 | 74 | 208 | 222 |
Total expenses | 3,010 | 2,142 | 8,865 | 12,266 |
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries | 77,024 | (2,139) | 86,178 | 54,719 |
Income tax benefit | 1,000 | 533 | 2,735 | 2,990 |
Equity in (over)/under distributed earnings of subsidiaries | (57,989) | 21,121 | (41,897) | 20,639 |
Net income | 20,035 | 19,515 | 47,016 | 78,348 |
Total comprehensive income, net of tax | $ 23,601 | $ 19,369 | $ 48,968 | $ 88,431 |
PARENT COMPANY FINANCIAL STAT95
PARENT COMPANY FINANCIAL STATEMENTS (Details 3) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||||||
Net income | $ 20,035 | $ 19,515 | $ 47,016 | $ 78,348 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Gain on acquisition | 0 | 0 | 0 | (41,977) | ||
Stock-based compensation expense | 1,381 | 798 | ||||
(Increase) decrease in other assets, net | (18,486) | (15,915) | ||||
Decrease in accrued expenses and other liabilities, net | 418 | 12,532 | ||||
Net cash from operating activities | 74,302 | 1,695 | ||||
Cash flows from investing activities | ||||||
Net cash used in investing activities | (360,693) | (713,810) | ||||
Cash flows from financing activities | ||||||
Issuance of common stock and restricted stock awards, including tax benefit | (182) | 41,112 | ||||
Repurchase of 5.1 million common shares | (74,987) | 0 | ||||
Repurchase of warrants to purchase 2.5 million shares, at fair value | (19,892) | 0 | ||||
Cash dividends paid on common stock | (2,127) | (704) | ||||
Repayment of senior unsecured line of credit | 0 | (35,000) | ||||
Repayment of long-term debt | (3,500) | 0 | ||||
Net cash from financing activities | 362,217 | 635,425 | ||||
Net increase (decrease) in cash and cash equivalents | 75,826 | (76,690) | ||||
Beginning cash and cash equivalents | $ 253,736 | 253,736 | 375,356 | |||
Ending cash and cash equivalents | $ 329,562 | 298,666 | $ 329,562 | $ 298,666 | ||
Number of shares repurchased | 2.5 | |||||
Cash dividends declared on common stock (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.01 | |
Parent Company | ||||||
Cash flows from operating activities | ||||||
Net income | $ 20,035 | 19,515 | $ 47,016 | $ 78,348 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in over (under) distributed earnings of subsidiaries | 41,897 | (20,639) | ||||
Gain on acquisition | 0 | 0 | 0 | (41,977) | ||
Stock-based compensation expense | 604 | 382 | ||||
(Increase) decrease in income tax benefit | (1,381) | 11 | ||||
(Increase) decrease in other assets, net | (482) | 551 | ||||
Decrease in accrued expenses and other liabilities, net | (3,620) | (3,081) | ||||
Net cash from operating activities | 84,034 | 13,595 | ||||
Cash flows from investing activities | ||||||
Cash (used in) proceeds from acquisitions | (13,323) | (6,500) | ||||
Capital contributions to subsidiaries | 0 | (99,500) | ||||
Refund of investment | 2,225 | 0 | ||||
Net cash used in investing activities | (11,098) | (106,000) | ||||
Cash flows from financing activities | ||||||
Issuance of common stock | 0 | 42,075 | ||||
Issuance of common stock and restricted stock awards, including tax benefit | (182) | (963) | ||||
Repurchase of 5.1 million common shares | (74,987) | 0 | ||||
Repurchase of warrants to purchase 2.5 million shares, at fair value | (19,892) | 0 | ||||
Cash dividends paid on common stock | (2,127) | (704) | ||||
Draw on senior unsecured line of credit | 30,000 | 0 | ||||
Repayment of senior unsecured line of credit | 0 | (35,000) | ||||
Repayment of long-term debt | (3,500) | 0 | ||||
Net cash from financing activities | (70,688) | 5,408 | ||||
Net increase (decrease) in cash and cash equivalents | 2,248 | (86,997) | ||||
Beginning cash and cash equivalents | $ 9,497 | 9,497 | 98,411 | |||
Ending cash and cash equivalents | $ 11,745 | $ 11,414 | $ 11,745 | $ 11,414 | ||
Number of shares repurchased | 2.5 | |||||
Cash dividends declared on common stock (in dollars per share) | $ 0.03 | $ 0.01 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator for basic and diluted EPS: | ||||
Net income | $ 20,035 | $ 19,515 | $ 47,016 | $ 78,348 |
Net income allocated to participating securities | 207 | 105 | 407 | 178 |
Net income allocated to shareholders | $ 19,828 | $ 19,410 | $ 46,609 | $ 78,170 |
Weighted average common shares - issued (in shares) | 69,449,000 | 70,470,000 | 70,354,000 | 69,570,000 |
Average unvested restricted share awards (in shares) | (718,000) | (378,000) | (610,000) | (156,000) |
Weighted average common shares outstanding - basic (in shares) | 68,731,000 | 70,092,000 | 69,744,000 | 69,414,000 |
Effect of dilutive securities - | ||||
Employee and director stock options (in shares) | 4,227,000 | 4,102,000 | 4,201,000 | 4,034,000 |
Warrants (in shares) | 264,000 | 1,558,000 | 502,000 | 1,500,000 |
Weighted average common shares outstanding - diluted (in shares) | 73,222,000 | 75,752,000 | 74,447,000 | 74,948,000 |
EPS available to common shareholders | ||||
Basic (in dollars per share) | $ 0.29 | $ 0.28 | $ 0.67 | $ 1.13 |
Diluted (in dollars per share) | 0.27 | 0.26 | 0.63 | 1.04 |
Other information on EPS | ||||
Average stock valuation (in dollars per share) | $ 16.58 | $ 14.08 | $ 15.61 | $ 13.52 |
Warrants repurchase | ||||
Other information on EPS | ||||
Shares not included in the computation of diluted net income available to common shareholders (in shares) | 0 | 0 | 0 | 0 |
Options | ||||
Other information on EPS | ||||
Shares not included in the computation of diluted net income available to common shareholders (in shares) | 35,000 | 14,000 | ||
Outstanding exercise prices: Low end (in dollars per share) | $ 14.44 | $ 14.44 | ||
Outstanding exercise prices: High end (in dollars per share) | $ 14.44 | $ 14.44 |
ACCUMULATED OTHER COMPREHENSI97
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 2,236 | $ 2,233 | $ 3,850 | $ (7,996) |
Other comprehensive income (loss) before reclassifications | 3,629 | 13 | 1,826 | 8,740 |
Amounts reclassified from accumulated other comprehensive income | (63) | (159) | 126 | 1,343 |
Net current period other comprehensive income (loss) | 3,566 | (146) | 1,952 | 10,083 |
Ending balance | 5,802 | 2,087 | 5,802 | 2,087 |
Net gain (loss) on sales of securities | 202 | 244 | 101 | (2,066) |
Income tax benefit with the reclassification adjustments related to available-for-sale securities | 71 | 85 | 35 | 723 |
Other brokered funds included in total interest expense | 104 | 296 | ||
Income tax benefit associated with the reclassification adjustments related to cash flow hedges | 36 | 104 | ||
Unrealized gains (losses) on securities available-for-sale, net of tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 2,105 | 2,233 | 3,995 | (7,996) |
Other comprehensive income (loss) before reclassifications | 4,210 | 13 | 2,255 | 8,740 |
Amounts reclassified from accumulated other comprehensive income | (131) | (159) | (66) | 1,343 |
Net current period other comprehensive income (loss) | 4,079 | (146) | 2,189 | 10,083 |
Ending balance | 6,184 | 2,087 | 6,184 | 2,087 |
Unrealized gains (losses) on cash flow hedges, net of tax | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 131 | 0 | (145) | $ 0 |
Other comprehensive income (loss) before reclassifications | (581) | 0 | (429) | |
Amounts reclassified from accumulated other comprehensive income | 68 | 0 | 192 | |
Net current period other comprehensive income (loss) | (513) | 0 | (237) | $ 0 |
Ending balance | $ (382) | $ 0 | $ (382) | $ 0 |