DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 12, 2015 | |
Class of Stock [Line Items] | |||
Entity Registrant Name | YADKIN FINANCIAL Corp | ||
Entity Central Index Key | 1366367 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $188,309,568 | ||
Common Stock, Voting | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 30,954,024 | ||
Common Stock, Non-Voting | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 654,997 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $65,312 | $29,081 |
Interest-earning deposits with banks | 66,548 | 71,699 |
Federal funds sold | 505 | 0 |
Investment securities available for sale, at fair value | 672,421 | 404,388 |
Investment securities held to maturity | 39,620 | 500 |
Loans held for sale | 20,205 | 8,663 |
Loans | 2,898,266 | 1,392,833 |
Allowance for loan losses | -7,817 | -7,043 |
Net loans | 2,890,449 | 1,385,790 |
Federal Home Loan Bank stock, at cost | 19,499 | 8,929 |
Premises and equipment, net | 80,379 | 44,875 |
Bank-owned life insurance | 76,990 | 33,148 |
Foreclosed assets | 12,891 | 10,518 |
Deferred tax asset, net | 72,403 | 54,867 |
Goodwill | 151,083 | 26,254 |
Other intangible assets, net | 16,677 | 5,883 |
Accrued interest receivable and other assets | 81,327 | 38,118 |
Total assets | 4,266,309 | 2,122,713 |
Deposits: | ||
Non-interest demand | 680,387 | 217,581 |
Interest-bearing demand | 469,898 | 351,921 |
Money market and savings | 1,004,796 | 467,814 |
Time | 1,092,283 | 634,915 |
Total deposits | 3,247,364 | 1,672,231 |
Short-term borrowings | 250,500 | 126,500 |
Long-term debt | 180,164 | 72,921 |
Accrued interest payable and other liabilities | 30,479 | 13,002 |
Total liabilities | 3,708,507 | 1,884,654 |
Shareholders’ Equity | ||
Preferred stock, no par value, 1,000,000 shares authorized, 28,405 shares issued and outstanding at December 31, 2014 | 28,405 | 0 |
Common stock, $1.00 par value, 75,000,000 shares authorized; 31,599,150 and 9,219,406 shares issued and outstanding at December 31, 2014 and 2013, respectively | 31,599 | 9,219 |
Common stock warrants | 717 | 0 |
Additional paid-in capital | 492,014 | 144,964 |
Retained earnings (accumulated deficit) | 7,311 | -10,658 |
Accumulated other comprehensive loss | -2,244 | -2,725 |
Total shareholders' equity before non-controlling interests | 557,802 | 140,800 |
Non-controlling interests | 0 | 97,259 |
Total shareholders' equity | 557,802 | 238,059 |
Total liabilities and shareholders' equity | $4,266,309 | $2,122,713 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $0 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | |
Preferred stock, shares issued (in shares) | 24,805 | |
Preferred stock, shares outstanding (in shares) | 24,805 | |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 31,599,150 | 9,219,406 |
Common stock, shares outstanding (in shares) | 31,599,150 | 9,219,406 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income | |||
Loans | $122,613 | $71,975 | $43,891 |
Investment securities | 11,791 | 7,026 | 4,112 |
Federal funds sold and interest-earning deposits | 144 | 89 | 89 |
Total interest income | 134,548 | 79,090 | 48,092 |
Interest expense | |||
Deposits | 8,404 | 6,203 | 5,616 |
Short-term borrowings | 406 | 165 | 19 |
Long-term debt | 5,170 | 2,285 | 1,169 |
Total interest expense | 13,980 | 8,653 | 6,804 |
Net interest income | 120,568 | 70,437 | 41,288 |
Provision for loan losses | 3,413 | 5,469 | 5,354 |
Net interest income after provision for loan losses | 117,155 | 64,968 | 35,934 |
Non-interest income | |||
Service charges and fees on deposit accounts | 9,574 | 4,959 | 2,131 |
Government-guaranteed lending | 9,450 | 5,586 | 3,159 |
Mortgage banking | 3,370 | 2,265 | 3,389 |
Bank-owned life insurance | 1,784 | 1,226 | 830 |
Gain on sales of available for sale securities | 126 | 1,215 | 1,251 |
Gain on sale of branch | 415 | 0 | 0 |
Gain on acquisition | 0 | 7,382 | 0 |
Other | 4,198 | 2,156 | 1,223 |
Total non-interest income | 28,917 | 24,789 | 11,983 |
Non-interest expense | |||
Salaries and employee benefits | 51,342 | 37,255 | 26,033 |
Occupancy and equipment | 15,075 | 9,133 | 5,331 |
Data processing | 5,235 | 3,920 | 2,833 |
FDIC deposit insurance premiums | 2,091 | 1,486 | 1,067 |
Professional services | 3,943 | 2,857 | 3,142 |
Foreclosed asset expenses, net | 671 | 473 | 649 |
Loan, collection, and repossession expense | 3,075 | 2,974 | 1,686 |
Merger and conversion costs | 22,136 | 14,650 | 3,242 |
Restructuring charges | 1,142 | 0 | 0 |
Amortization of other intangible assets | 2,157 | 800 | 448 |
Other | 12,087 | 8,322 | 5,914 |
Total non-interest expense | 118,954 | 81,870 | 50,345 |
Income (loss) before income taxes | 27,118 | 7,887 | -2,428 |
Income tax expense (benefit) | 5,413 | 2,014 | -3,216 |
Net income | 21,705 | 5,873 | 788 |
Dividends on preferred stock | 1,269 | 0 | 0 |
Net income attributable to non-controlling interests | 2,466 | 3,601 | 1,935 |
Net income (loss) available to common shareholders | $17,970 | $2,272 | ($1,147) |
Net income (loss) per common share | |||
Basic (in dollars per share) | $0.88 | $0.25 | ($0.12) |
Diluted (in dollars per share) | $0.88 | $0.25 | ($0.12) |
Weighted average common shares outstanding | |||
Basic (in shares) | 20,500,519 | 9,219,406 | 9,219,406 |
Diluted (in shares) | 20,505,142 | 9,219,406 | 9,219,406 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $21,705 | $5,873 | $788 |
Securities available for sale: | |||
Unrealized holding gains (losses) on available for sale securities | 9,054 | -12,844 | 4,150 |
Tax effect | -3,609 | 4,952 | -1,576 |
Reclassification of gains on sales of securities recognized in earnings | -126 | -1,215 | -1,251 |
Tax effect | 50 | 468 | 482 |
Net of tax amount | 5,369 | -8,639 | 1,805 |
Cash flow hedges: | |||
Unrealized gains (losses) on cash flow hedges | -6,062 | 4,305 | -434 |
Tax effect | 2,623 | -1,657 | 167 |
Net of tax amount | -3,439 | 2,648 | -267 |
Total other comprehensive income (loss) | 1,930 | -5,991 | 1,538 |
Comprehensive income (loss) | $23,635 | ($118) | $2,326 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Shareholders' Equity Before Non-Controlling Interests | Preferred Stock | Common Stock | Common Stock Warrants | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests |
Beginning balance at Dec. 31, 2011 | $183,510,000 | $140,709,000 | $0 | $9,219,000 | $0 | $143,083,000 | ($11,783,000) | $190,000 | $42,801,000 |
Beginning balance (in shares) at Dec. 31, 2011 | 0 | 9,219,406 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 788,000 | -1,147,000 | -1,147,000 | 1,935,000 | |||||
Other comprehensive income | 1,538,000 | 1,364,000 | 1,364,000 | 174,000 | |||||
Purchase of subsidiary non-controlling interests | -4,808,000 | -1,094,000 | -1,142,000 | 48,000 | -3,714,000 | ||||
Issuance of subsidiary common stock | 14,000 | 14,000 | 14,000 | ||||||
Common stock issuance costs | -64,000 | -64,000 | -64,000 | ||||||
Subsidiary share repurchase | -6,000 | -6,000 | -6,000 | ||||||
Stock-based compensation | 2,266,000 | 2,162,000 | 2,162,000 | 104,000 | |||||
Forfeited restricted stock | 32,000 | 32,000 | |||||||
Dividends on preferred stock | -2,548,000 | -2,548,000 | |||||||
Ending balance at Dec. 31, 2012 | 180,722,000 | 141,938,000 | 0 | 9,219,000 | 0 | 144,047,000 | -12,930,000 | 1,602,000 | 38,784,000 |
Ending balance (in shares) at Dec. 31, 2012 | 0 | 9,219,406 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 5,873,000 | 2,271,000 | 2,271,000 | 3,602,000 | |||||
Other comprehensive income | -5,991,000 | -4,327,000 | -4,327,000 | -1,664,000 | |||||
Stock-based compensation | 1,153,000 | 917,000 | 917,000 | 236,000 | |||||
Stock options exercised | 111,000 | 111,000 | |||||||
Shares issued due to acquisition/merger | 58,314,000 | 0 | 0 | 58,314,000 | |||||
Restricted stock, canceled for tax withholding | -205,000 | -205,000 | |||||||
Dividends on preferred stock | -1,918,000 | -1,918,000 | |||||||
Ending balance at Dec. 31, 2013 | 238,059,000 | 140,799,000 | 0 | 9,219,000 | 0 | 144,964,000 | -10,659,000 | -2,725,000 | 97,260,000 |
Beginning balance (in shares) at Dec. 31, 2013 | 0 | 9,219,406 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 21,705,000 | 19,239,000 | 19,239,000 | 2,466,000 | |||||
Other comprehensive income | 1,929,000 | 864,000 | 0 | 864,000 | 1,065,000 | ||||
Issuance of subsidiary common stock | 44,466,000 | 1,398,000 | 1,301,000 | 97,000 | 43,068,000 | ||||
Stock-based compensation | 941,000 | 830,000 | 830,000 | 111,000 | |||||
Subsidiary stock options exercised | 139,000 | 139,000 | |||||||
Stock options exercised | 5,000 | 5,000 | 5,000 | ||||||
Stock options exercised (in shares) | 11,353 | 555 | |||||||
Repurchase of subsidiary preferred stock | -42,849,000 | -42,849,000 | |||||||
Repurchase of subsidiary common stock warrants | -2,552,000 | -2,552,000 | |||||||
Dividends on subsidiary preferred stock | -314,000 | -314,000 | |||||||
Shares issued due to acquisition/merger | 308,237,000 | 406,631,000 | 28,405,000 | 22,432,000 | 717,000 | 355,557,000 | -480,000 | -98,394,000 | |
Shares issued due to acquisition/merger, shares | 28,405 | 22,431,701 | |||||||
Distribution to legacy Piedmont Community Bank Holdings, Inc. shareholders | -9,809,000 | -9,809,000 | -9,809,000 | ||||||
Restricted stock, canceled for tax withholding | -886,000 | -886,000 | -52,000 | -834,000 | |||||
Cancellation of restricted shares for tax withholding (in shares) | -52,512 | ||||||||
Dividends on preferred stock | -1,269,000 | -1,269,000 | -1,269,000 | ||||||
Ending balance at Dec. 31, 2014 | $557,802,000 | $557,802,000 | $28,405,000 | $31,599,000 | $717,000 | $492,014,000 | $7,311,000 | ($2,244,000) | $0 |
Ending balance (in shares) at Dec. 31, 2014 | 28,405 | 31,599,150 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $21,705 | $5,873 | $788 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 941 | 1,153 | 2,266 |
Provision for loan losses | 3,413 | 5,469 | 5,354 |
Accretion of acquisition discount on purchased loans | -27,888 | -20,961 | -16,166 |
Depreciation | 4,683 | 2,521 | 1,362 |
Amortization of core deposit intangible | 2,157 | 800 | 448 |
Amortization of acquisition premium on time deposits | -3,381 | -3,049 | -3,048 |
Net accretion of acquisition discount on borrowings | 704 | -3 | 148 |
Gain on acquisition | 0 | -7,382 | 0 |
Gain on sale of branch | -415 | 0 | 0 |
Gain on mortgage loan commitments | 13 | 441 | -742 |
Gain on sales of loans held for sale | -12,335 | -7,436 | -5,567 |
Originations of loans held for sale | -320,448 | -188,070 | -147,064 |
Proceeds from sales of loans held for sale | 336,937 | 216,738 | 140,406 |
Increase in cash surrender value of bank-owned life insurance | -1,536 | -923 | -715 |
Deferred income taxes | 9,905 | 2,474 | -1,416 |
Change in deferred tax asset valuation allowance | -4,797 | -460 | -1,869 |
Gain on sales of available for sale securities | -126 | -1,215 | -1,251 |
Net amortization of premiums on securities | 4,260 | 1,749 | 926 |
Net loss on disposal of foreclosed assets | -28 | 0 | 68 |
Valuation adjustments on foreclosed assets | 497 | 467 | 1,119 |
Gains from change in fair value of interest rate swaps | 0 | -103 | -228 |
Change in assets and liabilities: | |||
(Increase) decrease in accrued interest receivable | -820 | -5 | -1,714 |
(Increase) decrease in other assets | -7,120 | -13,870 | 3,467 |
Increase (decrease) in accrued interest payable | 139 | 1,017 | -367 |
Increase (decrease) in other liabilities | 7,709 | -1,919 | 3,215 |
Net cash provided by (used in) operating activities | 14,169 | -6,694 | -20,580 |
Cash flows from investing activities | |||
Purchases of securities available for sale | -210,340 | -201,919 | -86,187 |
Purchases of securities held to maturity | -18,713 | 0 | 0 |
Proceeds from maturities and repayments of securities available for sale | 55,661 | 33,962 | 36,027 |
Proceeds from call of securities held to maturity | 500 | 0 | 0 |
Proceeds from sales of securities available for sale | 128,162 | 174,326 | 86,601 |
Loan originations and principal collections, net | -121,090 | -158,917 | -29,567 |
Proceeds from sales of loans | 2,076 | 2,595 | 15,454 |
Purchases of loans | 0 | -2,567 | -7,698 |
Net cash received in business combinations | 36,116 | 24,008 | 0 |
Purchase of non-controlling stock in subsidiary, net of costs | 0 | 0 | -4,878 |
Net cash paid in branch sale | -10,837 | 0 | 0 |
Purchases of cash flow hedges | -1,278 | 0 | 0 |
Purchases of trade accounts receivable, net | -26,096 | 0 | 0 |
Purchases of premises and equipment | -7,004 | -5,454 | -2,156 |
Disposals of premises and equipment | 3,954 | 0 | 0 |
Proceeds from disposal of foreclosed assets | 6,458 | 6,776 | 8,238 |
Purchases of Federal Home Loan Bank stock | -6,792 | -3,472 | 7,592 |
Purchase of bank-owned life insurance | -15,000 | 0 | 0 |
Net cash provided by (used in) investing activities | -184,223 | -130,662 | 23,426 |
Cash flows from financing activities | |||
Net increase in deposits | 79,780 | 68,204 | -11,497 |
Issuance of subsidiary common stock | 0 | 0 | 14 |
Proceeds from short-term borrowings, net | 33,621 | 84,716 | 3,000 |
Proceeds from issuance of long-term debt, net | 101,308 | 36,600 | 0 |
Proceeds from exercise of stock options | 143 | 111 | 32 |
Proceeds from issuance of subsidiary common stock, net of issuance costs | 44,466 | 0 | 0 |
Repurchase of subsidiary preferred stock | -42,849 | 0 | 0 |
Repurchase of subsidiary common stock warrants | -2,552 | 0 | 0 |
Distribution to legacy shareholders of Piedmont Community Bank Holdings, Inc. | -9,809 | 0 | 0 |
Cancellation of restricted stock for tax withholding | -872 | -205 | 0 |
Cancellation and payout of fractional shares issued in merger | -14 | 0 | 0 |
Dividends paid on subsidiary preferred stock | -314 | -1,803 | -2,548 |
Dividends paid on preferred stock | -1,269 | 0 | 0 |
Net cash provided by (used in) financing activities | 201,639 | 187,623 | -10,999 |
Net change in cash and cash equivalents | 31,585 | 50,267 | -8,153 |
Cash and cash equivalents, beginning of period | 100,780 | 50,513 | 58,666 |
Cash and cash equivalents, end of period | 132,365 | 100,780 | 50,513 |
SUPPLEMENTAL DISCLOSURES: | |||
Interest | 15,785 | 10,364 | 9,032 |
Income taxes | 240 | 0 | 0 |
Noncash investing activities: | |||
Transfers of loans to foreclosed assets | 9,300 | 5,856 | 3,690 |
Change in fair value of securities available for sale, net of tax | 5,369 | -8,639 | 1,238 |
Change in fair value of cash flow hedge, net of tax | -3,439 | 2,648 | -267 |
Acquisition: | |||
Assets acquired (excluding goodwill) | 1,803,248 | 855,686 | 0 |
Liabilities assumed | 1,619,840 | 789,989 | 0 |
Other equity interests acquired | 29,122 | 17,686 | 0 |
Purchase price | 279,115 | 40,629 | 0 |
Goodwill recorded (gain on acquisition) | $124,829 | ($7,382) | $0 |
ORGANIZATION_AND_OPERATIONS
ORGANIZATION AND OPERATIONS | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | ORGANIZATION AND OPERATIONS |
Yadkin Financial Corporation (the "Company" or "Yadkin") is a bank holding company incorporated under the laws of North Carolina and headquartered in Raleigh, North Carolina. The Company, which was formed in 2006, conducts its business operations primarily through its wholly-owned subsidiary, Yadkin Bank, a North Carolina chartered community bank providing financial services in 73 branches across North Carolina and upstate South Carolina. Yadkin Bank, which was incorporated in 1968, provides banking, mortgage, investment, and insurance services to businesses and consumers across the Carolinas. | |
The Company also has interests in Yadkin Valley Statutory Trust I, American Community Bank Capital Trust, and Crescent Financial Capital Trust I (the “Trusts”). The Trusts were formed for the sole purpose of issuing trust preferred securities and are not consolidated with the financial statements of the Company. The proceeds from such issuances were loaned to the Company in exchange for subordinated debentures, which are the sole assets of the Trusts. The Company’s obligations under the subordinated debentures constitutes full and unconditional guarantees by the Company of the obligations under the trust preferred securities. | |
On July 4, 2014, the Company completed its mergers (the “Mergers”) with VantageSouth Bancshares, Inc. ("VantageSouth") and Piedmont Community Bank Holdings, Inc. ("Piedmont"), pursuant to an Agreement and Plan of Merger dated January 27, 2014, as amended (the “Merger Agreement”). At closing, VantageSouth and Piedmont merged with and into the Company, with the Company continuing as the surviving corporation. Pursuant to the Merger Agreement, holders of VantageSouth common stock received 0.3125 shares of voting common stock of the Company for each share of VantageSouth common stock. Holders of Piedmont common stock received (i) 6.28597 shares of voting common stock of the Company; (ii) $6.6878 in cash; and (iii) a right to receive a pro rata portion of certain shares of voting common stock of the Company at a later date if such shares do not become payable under the Piedmont Phantom Equity Plan. Immediately following the Mergers, VantageSouth Bank, the wholly-owned banking subsidiary of VantageSouth, merged with and into Yadkin Bank. | |
The Mergers were accounted for as a reverse merger using the acquisition method of accounting primarily due to the relative voting interests in the Company upon completion of the Mergers. As a result, Piedmont and its consolidated subsidiaries represent the accounting acquirer, and Yadkin represents the accounting acquiree. Therefore, historical financial results of the Company prior to the Mergers reflect the historical balances of Piedmont. Financial results of the Company following the Mergers reflect balances of the combined organization. As required under the acquisition method of accounting, the assets and liabilities of Yadkin as of the date of the Mergers were recorded at estimated fair value and added to those of Piedmont. The Mergers had a significant impact on all aspects of the Company's financial statements, and as a result, financial results after the Mergers may not be comparable to financial results prior to the Mergers. | |
Basis of Presentation | |
The accompanying consolidated financial statements include the accounts and transactions of the Company and Yadkin Bank. These consolidated financial statements have been retrospectively adjusted for the change in reporting entity described above. All intercompany transactions and balances have been eliminated in consolidation. | |
Use of Estimates and Assumptions | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Subsequent Events | |
Management has evaluated subsequent events through the filing date of this Form 10-K. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Business Combinations | |||||||||
Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method of accounting, acquired assets and assumed liabilities are included with the acquirer's accounts as of the date of acquisition at estimated fair value, with any excess of purchase price over the fair value of the net assets acquired (including identifiable core deposit intangibles) capitalized as goodwill. In the event that the fair value of the net assets acquired exceeds the purchase price, an acquisition gain is recorded for the difference in consolidated statements of operations for the period in which the acquisition occurred. The core deposit intangible asset is recognized as an asset apart from goodwill when it arises from contractual or other legal rights or if it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred. | |||||||||
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents include cash and due from banks, interest-earning deposits with banks and federal funds sold. Cash and cash equivalents have maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. | |||||||||
Investment Securities | |||||||||
The Company classifies marketable investment securities as held to maturity, available for sale, or trading. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. Debt securities are classified as held to maturity where the Company has both the intent and ability to hold the securities to maturity. These securities are reported at amortized cost. Investment securities available for sale are carried at fair value and consist of debt and equity securities not classified as trading or held to maturity. Unrealized holding gains and losses on available for sale securities are reported as a net amount in other comprehensive income, net of related tax effects. Gains and losses on the sale of available for sale securities are determined using the specific identification method. | |||||||||
Each held to maturity and available for sale security in a loss position is evaluated for other-than-temporary impairment. The review includes an analysis of the facts and circumstances of each individual investment such as (1) the length of time and the extent to which the fair value has been below amortized cost, (2) changes in the earnings performance, credit rating, asset quality, or business prospects of the issuer, (3) the ability of the issuer to make principal and interest payments, (4) changes in the regulatory, economic, or technological environment of the issuer, and (5) changes in the general market condition of either the geographic area or industry in which the issuer operates. | |||||||||
Regardless of these factors, if the Company has developed a plan to sell the security or it is likely that the Company will be forced to sell the security in the near future, then the impairment is considered other-than-temporary and the carrying value of the security is permanently written down to the current fair value with the difference between the new carrying value and the amortized cost charged to earnings. If the Company does not intend to sell the security and it is not more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the other-than-temporary impairment is separated into the following: (1) the amount representing the credit loss and (2) the amount related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings, and the amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of applicable taxes. | |||||||||
Loans | |||||||||
Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity, are reported at their outstanding principal adjusted for any charge-offs, deferred fees or costs on originated loans and unamortized premiums or discounts on acquired loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment to the yield of the related loan. Interest on loans is recorded based on the principal amount outstanding. The accrual of interest on impaired loans, for all classes, is discontinued when the future collectability of the recorded loan balance is in doubt. When the future collectability of the recorded loan balance is not in doubt, interest income may be recognized on the cash basis. Generally, loans are placed on nonaccrual when they are past due 90 days or more. When a loan is placed in nonaccrual status, all unpaid accrued interest is reversed and subsequent collections of interest and principal payments are generally applied as a reduction to the principal outstanding. Should the credit quality of a nonaccrual loan improve, the loan can be returned to an accrual status after demonstrating consistent payment history for at least 6 months. | |||||||||
A loan is classified as a troubled debt restructuring (“TDR”) when certain modifications are made to the loan terms and concessions are granted to the borrowers due to financial difficulty experienced by those borrowers. In the past, the Company has granted concessions by (1) reduction of the stated interest rate for the remaining original life of the debt or (2) extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. The Company does not generally grant concessions through forgiveness of principal or accrued interest. The Company's policy with respect to accrual of interest on loans restructured in a TDR follows relevant supervisory guidance. That is, if a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms, continued accrual of interest at the restructured interest rate is likely. If a borrower was materially delinquent on payments prior to the restructuring but shows the capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual until a period of performance under the modified terms has been established. Lastly, if the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. These loans are closely monitored, and the Company ceases accruing interest on them if the borrowers may not continue performing based on the restructured note terms. | |||||||||
The Company's loan policies, guidelines, and procedures establish the basic guidelines governing its lending operations. They address the types of loans sought, target markets, underwriting, collateral requirements, term, interest rate, yield considerations and compliance with laws and regulations. The loan policies are reviewed and approved annually by the Board of Directors of the Bank. The summary below provides an overview of the primary types of loans the Company provides, or classes of loans, including a discussion of relevant underwriting guidelines and risk characteristics. | |||||||||
Commercial and Industrial Loans. These loans are typically for working capital, equipment, and business expansion. Commercial and industrial loans are generally secured by accounts receivable, inventory, equipment and owner-occupied real estate. With few exceptions, the Company requires personal guarantees from the principal business owners. Commercial loans are generally originated with one to seven year maturities for working capital and equipment loans and five to seven year maturities with 15 to 25 year amortizations for owner occupied real estate. | |||||||||
Commercial Real Estate Loans. These loans are secured principally by leased apartments, retail centers, and commercial office and industrial buildings, acquired by the borrower for both investment and owner-occupied purposes. The Company generally requires the personal guaranty of the principal business owners on all such loans. The real estate collateral is a secondary source of repayment. Commercial real estate loans are generally originated with three to seven year maturities with up to 25 year amortizations. | |||||||||
Construction Loans. These loans are generally originated with one to 5 year maturities and may have an amortization feature that could extend up to 25 years once the properties are stabilized. The Company's primary focus on one-to-four family residential construction loans is to borrowers who are the primary end users or to builders in situations in which the home is pre-sold to the end user and the loan is repaid when the end user secures a permanent mortgage. These loans are generally originated with maturities up to 1.5 years in length. Construction loans to home builders for speculative residential homes are not a focus for the Company. In many cases, home builders do require a speculative component to their lending facilities; however, credit exposure is controlled through the covenants relating to the home builder's speculative-to-sold ratio. Any loans made in this product would be to well-established home builders with an excellent track record who are focused on delivering commodity-style housing. Through its Builder Finance division, the Company lends to home builders in its markets who have demonstrated a favorable record of performance and profitable operations. The Company's loan policies require personal guarantees of the principal business owners. | |||||||||
Consumer Loans, Home Equity Lines of Credit and Residential Real Estate Loans. Consumer loans include automobile loans, boat and recreational vehicle financing, home equity and home improvement loans, and miscellaneous secured and unsecured personal loans. Residential real estate loans are made for purchasing and refinancing one-to-four family properties. The Company also offers construction-to-permanent loans for one-to-four family properties. These loans are generally sold to investors when construction is complete and the loan converts to permanent financing. The Company offers fixed and variable rate options on consumer loans but generally limits the maximum term to 5 to 7 years for non-real estate secured loans. | |||||||||
Purchased Credit-Impaired Loans | |||||||||
Loans acquired in a transfer, including business combinations, where there is evidence of credit deterioration since origination and it is probable at the date of acquisition that we will not collect all contractually required principal and interest payments, are accounted for as purchased credit-impaired (“PCI”) loans. Where possible, PCI loans with common risk characteristics are grouped into pools at acquisition. For PCI loan pools, the excess of the cash flows initially expected to be collected over the fair value of the loans at the acquisition date (i.e., the accretable yield) is accreted into interest income over the estimated remaining life of the PCI loans using the effective yield method, provided that the timing and the amount of future cash flows is reasonably estimable. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. | |||||||||
Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities, and other factors that are reflective of current market conditions. If the Company has probable decreases in pool-level cash flows expected to be collected, the provision for loan losses is charged, resulting in an increase to the ALLL. If the Company has probable and significant increases in pool-level cash flows expected to be collected, the Company will first reverse any previously established ALLL and then increase interest income as a prospective yield adjustment over the remaining life of the loan pool. The impact of changes in variable interest rates is recognized prospectively as adjustments to interest income. | |||||||||
Purchased Non-impaired Loans | |||||||||
Purchased non-impaired loans are also recorded at fair value at acquisition, and the related fair value discount or premium is recognized as an adjustment to yield over the remaining life of each loan using the interest method. | |||||||||
Allowance for Loan Losses | |||||||||
The ALLL and related provision are calculated for the Company's two portfolio categories: PCI loans and non-PCI loans. The following description of the Company's ALLL methodology primarily relates to non-PCI loans. The evaluation of PCI loans for impairment follows a different methodology which is described above. The ALLL is a reserve established through a provision for loan losses charged to expense. Balances are charged against the ALLL when the collectability of principal is unlikely. Subsequent recoveries, if any, are credited to the ALLL. The ALLL is maintained at a level based on management's best estimate of probable credit losses that are inherent in the loan portfolio. Management evaluates the adequacy of the ALLL on at least a quarterly basis. | |||||||||
For non-PCI loans, the evaluation of the adequacy of the ALLL includes both loans evaluated collectively for impairment and loans evaluated individually for impairment. The determination of loss rates on loans collectively evaluated for impairment involves considerations of historic loan loss experience as well as certain qualitative factors such as current delinquency levels and trends, loan growth, loan portfolio composition and concentrations, prevailing economic conditions, the loan review function, and other relevant factors. The annualized trailing 3.5-year historical loss rates are used in combination with the qualitative factors to determine appropriate loss rates for each identified risk category. | |||||||||
The Company utilizes an internal grading system to assign the degree of inherent risk on each loan in the portfolio. The risk grade is initially assigned by the lending officer and reviewed by the credit administration function. The internal risk grading system is reviewed and tested periodically by the loan review function. The Company's allowance for loan loss model uses the internal loan grading system to segment each category of loans by risk grade. Calculated loss rates are weighted more heavily for higher risk loans. | |||||||||
A loan is considered individually impaired when, based on current information and events, if it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. These loans are evaluated individually for impairment if they exceed a quantitative threshold of $250 at the borrower level or have been modified in a TDR. Reserves, or charge-offs, on individually impaired loans that are collateral dependent are based on the fair value of the underlying collateral, less an estimate of selling costs, while reserves, or charge-offs, on loans that are not collateral dependent are based on either an observable market price, if available, or the present value of expected future cash flows discounted at the historical effective interest rate. The Company evaluates loans that are classified as doubtful, substandard or special mention to determine whether or not they are individually impaired. This evaluation includes several factors, including review of the loan payment status and the borrower’s financial condition and operating results such as cash flows, operating income or loss, etc. | |||||||||
The evaluation of the ALLL is inherently subjective, and management uses the best information available to establish this estimate. However, if factors such as economic conditions differ substantially from assumptions, or if amounts and timing of future cash flows expected to be received on impaired loans vary substantially from the estimates, future adjustments to the ALLL may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to recognize additions to the ALLL based on their judgments about all relevant information available to them at the time of their examination. Any adjustments to original estimates are made in the period in which the factors and other considerations indicate that adjustments to the ALLL are necessary. | |||||||||
Loans Held for Sale | |||||||||
Mortgage loans originated and intended for sale in the secondary market are classified as held for sale and are carried at the lower of cost or fair value. Upon closing, these loans are sold to mortgage loan investors under pre-arranged terms. Origination fees are recognized upon the sale and are included in non-interest income. Related to the mortgage business, the Company enters into interest rate lock commitments and commitments to sell mortgages to investors. Interest rate lock commitments are used to manage interest rate risk associated with the fixed rate loan commitments, and forward sale commitments are entered into with investors to manage the interest rate risk associated with the customer interest rate lock commitments, both of which are considered derivative financial instruments. The period of time between the issuance of a loan commitment and the closing and sale of the loan generally ranges from 10 to 60 days. Interest rate lock commitments and forward sale commitments are derivative instruments and are carried at fair value. These derivative instruments do not qualify for hedge accounting. The fair value of interest rate lock commitments is based on current secondary market pricing and is included in other assets on the balance sheet. The fair value of the forward sale commitments is based on changes in the value of the commitment, principally because of changes in interest rates, and is included on the consolidated balance sheets in other assets or other liabilities. Changes in fair value for these instruments are reflected in non-interest income on the income statement. Gains and losses from sales of the mortgage loans are recognized when the Company ultimately sells the loans, and such gains and losses are also recorded in non-interest income. | |||||||||
The Company provides loans guaranteed by the Small Business Administration (“SBA”) for the purchase of businesses, business startups, business expansion, equipment, and working capital. All SBA loans are underwritten and documented as prescribed by the SBA. SBA loans are generally fully amortizing and have maturity dates and amortizations of up to 25 years. The portion of SBA loans originated that are guaranteed and intended for sale on the secondary market are classified as held for sale and are carried at the lower of cost or fair value. The loan participations are sold and the servicing rights are retained. At the time of the sale, an asset is recorded for the value of the servicing rights and is amortized over the remaining life of the loan on the effective interest method. The servicing asset is included in other assets and the amortization of the servicing asset is included in non-interest expense. Servicing fees are recorded in non-interest income. A gain is recorded for any premium paid in excess of the carrying value of the net assets transferred in the sale and is also included in non-interest income. The portion of SBA loans that are retained are also adjusted for a retained discount to reflect the effective interest rate on the retained unguaranteed portion of the loans. The net value of the retained loans is included in the appropriate loan classification for disclosure purposes. These loans are primarily commercial real estate or commercial and industrial. | |||||||||
Federal Home Loan Bank of Atlanta Stock | |||||||||
As a requirement for membership, the Company has invested in common stock of the Federal Home Loan Bank of Atlanta (“FHLB”). This investment is carried at cost and is periodically evaluated for impairment. | |||||||||
Premises and Equipment | |||||||||
Land is carried at cost. Other components of premises and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of assets, which range from 37 to 40 years for buildings and three to ten years for furniture, software, and equipment. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are charged to operations as incurred, and additions and improvements to premises and equipment are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any gains or losses are reflected in earnings. | |||||||||
Premises and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Assets to be disposed of are transferred to other real estate owned and are reported at the lower of the carrying amount or fair value less costs to sell. | |||||||||
Bank-Owned Life Insurance | |||||||||
The Company has purchased life insurance policies on certain current and former employees and directors. These policies are recorded in other assets at their cash surrender value, or the amount that could be realized by surrendering the policies. Income from these policies and changes in the net cash surrender value are recorded in non-interest income. | |||||||||
Foreclosed Assets | |||||||||
Foreclosed assets include repossessed assets and other real estate owned. Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell upon foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed, and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and valuation adjustments are included in net expenses from foreclosed assets. | |||||||||
Income Taxes | |||||||||
Deferred income taxes are determined by application to temporary differences of the tax rate expected to be in effect when taxes will become payable or receivable. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. A valuation allowance is recorded for deferred tax assets if the Company determines that it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||
Mortgage Servicing Rights | |||||||||
The Company retains servicing rights on mortgage loans sold to investors ("MSR"). MSRs are initially recognized at fair value in other assets on the consolidated balance sheets and are subsequently accounted for at the lower of cost or market. MSRs are amortized in proportion to, and over the estimated period, that net servicing income is expected to be received based on estimates of net cash flows on the loans serviced. The amount and timing of estimated future net cash flows are updated based on actual results and updated projections. MSRs are separated into pools based on common risk characteristics of the underlying loans, and impairment is evaluated at least quarterly at the pool level. If impairment exists at the pool level, the MSR is written down through a valuation allowance and is charged against mortgage banking income. | |||||||||
SBA Servicing Asset | |||||||||
All sales of SBA-guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. The standard sale structure under the SBA Secondary Participation Guaranty Agreement provides for the Company to retain a portion of the cash flow from the interest payment received on the loan. This cash flow is commonly known as a servicing spread. SBA regulations require the lender to retain a minimum 100 basis points in servicing spread for any guaranteed loan sold for a premium. The minimum servicing spread is further defined as a minimum service fee of 40 basis points and a minimum premium protection fee of 60 basis points. The servicing spread is recognized as a servicing asset to the extent the spread exceeds adequate compensation for the servicing function. Industry practice recognizes adequate compensation for servicing SBA loans as the minimum service fee of 40 basis points. The fair value of the servicing asset is measured at the discounted present value of the premium protection fee over the expected life of the related loan using appropriate discount rates and prepayment assumptions based on industry statistics. SBA servicing assets are initially recognized at fair value and amortized over the expected life of the related loans as a reduction of the servicing income recognized from the servicing spread. | |||||||||
Goodwill and Other Intangible Assets | |||||||||
Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business combinations. Goodwill has an indefinite useful life and is evaluated for impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The goodwill impairment analysis is a two-step test. The first, used to identify potential impairment, involves comparing each reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment. The Company performs its annual goodwill impairment test as of October 31 of each year. For 2014, the results of the first step of the goodwill impairment test provided no indication of potential impairment. Goodwill will continue to be monitored for triggering events that may indicate impairment prior to the next scheduled annual impairment test. | |||||||||
Intangible assets with finite lives are amortized over their estimated useful lives. Other intangible assets, which consist of core deposit intangibles, are being amortized over seven to ten-year periods using an accelerated method. | |||||||||
Derivative Financial Instruments | |||||||||
The Company's interest rate risk management strategy incorporates the use of derivative financial instruments, specifically interest rate swaps and caps. The Company also utilizes interest rate lock commitments and forward sale commitments, which are considered derivative instruments, in its mortgage banking operations. The accounting policies for these mortgage banking derivatives are described in "Loans Held for Sale." The interest rate swaps and caps are expected to be highly effective and have been designated as cash flow hedges. Therefore, changes in fair value are recognized in other comprehensive income until the related cash flows from the hedged item are recognized in earnings. For the interest rate caps, the initial fair value of the premium paid is allocated and recognized in the same future period that the hedged forecasted transaction impacts earnings. | |||||||||
For cash flow hedges, ineffectiveness may be recognized to the extent that changes in value of the derivative instruments do not perfectly offset changes in the value of the hedged item. If the hedge ceases to be highly effective, hedge accounting is discontinued and changes in fair value are recognized in earnings. If a derivative instrument qualifying as a cash flow hedge is terminated or the designation removed, the realized or then unrealized gain or loss is recognized in earnings over the period in which the hedged item affects earnings. Immediate recognition in earnings is required if it is probable that the hedged cash flows will not occur. | |||||||||
The Company only transacts with derivative counterparties with strong credit standings and requires liquid collateral to secure credit exposure. Due to these factors, the fair value of derivatives with derivative counterparties is primarily based on the interest rate mark of each trade. | |||||||||
Stock-Based Compensation | |||||||||
Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors. Compensation cost is measured as the fair value of these awards on their date of grant. An option pricing model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used as the fair value of restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock options awards and as the restriction period for restricted stock awards. | |||||||||
Compensation cost is recognized on a pro rata basis for stock warrants previously granted to certain employees, officers and directors of Piedmont. Compensation cost was measured as the fair value of these awards on their date of grant. A Monte Carlo option pricing model was utilized to estimate the fair value of Piedmont’s stock warrants issued. Compensation cost is recognized over the vesting period. | |||||||||
Fair Value Measurements | |||||||||
Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company follows the fair value hierarchy which gives the highest priority to quoted prices in active markets (observable inputs) and the lowest priority to management’s assumptions (unobservable inputs). For assets and liabilities recorded at fair value, the Company’s policy is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. | |||||||||
The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available-for-sale investment securities and derivatives are recorded at fair value on a recurring basis. Additionally, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans, loans held for sale, impaired loans and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. | |||||||||
Assets and liabilities measured at fair value are grouped in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls to a lower level in the hierarchy. These levels are described as follows: | |||||||||
• | Level 1 – Valuations for assets and liabilities traded in active exchange markets. | ||||||||
• | Level 2 – Valuations for assets and liabilities that can be obtained from readily available pricing sources via independent providers for market transactions involving similar assets or liabilities. The Company’s principal market for these securities is the secondary institutional markets, and valuations are based on observable market data in those markets. | ||||||||
• | Level 3 – Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. | ||||||||
The determination of where an asset or liability falls in the fair value hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures at each reporting period and based on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, management expects that changes in classifications between levels will be rare. | |||||||||
Per Share Results | |||||||||
Basic and diluted net income per share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted net income per share reflects the potential dilution that could occur if common stock options and warrants were exercised, resulting in the issuance of common stock that then shared in the net income of the Company. | |||||||||
Basic and diluted net income per share have been computed based upon net income available to common shareholders as presented in the accompanying consolidated statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below. | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Weighted average number of common shares | 20,500,519 | 9,219,406 | 9,219,406 | ||||||
Effect of dilutive stock options and warrants | 4,623 | — | — | ||||||
Weighted average number of common shares and dilutive potential common shares | 20,505,142 | 9,219,406 | 9,219,406 | ||||||
Anti-dilutive stock options | 49,474 | — | — | ||||||
Anti-dilutive stock warrants | 91,178 | — | — | ||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||
The Company’s accumulated other comprehensive income (loss) is comprised of unrealized gains and losses on securities available for sale and unrealized gains and losses on cash flow hedges to the extent that the hedges were effective. Details on the components of accumulated other comprehensive income are outlined in Note R of the Notes to Consolidated Financial Statements. | |||||||||
Segment Reporting | |||||||||
Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management has determined that the Company has a single operating segment, which is providing general commercial banking and financial services to individuals and businesses located in North Carolina and South Carolina, and to customers in various states through its SBA lending program. The Company's various products and services are those generally offered by community banks, and the allocation of resources is based on the overall performance of the company versus individual regions, branches, products and services. | |||||||||
Recently Adopted and Issued Accounting Standards | |||||||||
In November 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-17: Business Combinations (Topic 805): Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force). The amendments in this Update provide the option for acquired entities to apply pushdown accounting in their stand-alone financial statements when a change-in-control event takes place. This election may be made at each change-in-control event, and allows entities to apply pushdown accounting in a subsequent period if not applied in the period in which the change-in-control event took place. The amendments in this Update were effective upon issue on November 18, 2014, allowing entities to apply the provisions to future change-in-control events or to its most recent change-in-control event. Adoption of this Update did not have an impact on the Company’s financial position or results of operations. | |||||||||
In August 2014, the FASB issued ASU No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The amendments in this Update require a reporting entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance expected to be recovered from the guarantor. The amendments in this Update are effective for interim and annual periods beginning after December 15, 2014. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. | |||||||||
In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860). The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. The guidance also requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. This Update is effective for interim and annual reporting periods beginning after December 15, 2014. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. | |||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this Update provide a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This Update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The amendments in this Update are effective for periods beginning after December 15, 2016 and early adoption is not permitted. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. | |||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments in this Update are effective for periods beginning after December 15, 2014. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. | |||||||||
In January 2014, the FASB issued ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update are effective for periods beginning after December 15, 2014. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. |
MERGERS_AND_ACQUISITIONS
MERGERS AND ACQUISITIONS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||
MERGERS AND ACQUISITIONS | MERGERS AND ACQUISITIONS | |||||||||||||||
Mergers with VantageSouth Bancshares, Inc. and Piedmont Community Bank Holdings, Inc. | ||||||||||||||||
On July 4, 2014, the Company completed its mergers with VantageSouth and Piedmont pursuant to the Merger Agreement. At closing, VantageSouth and Piedmont merged with and into the Company, with the Company continuing as the surviving corporation. Piedmont owned a controlling interest in VantageSouth at the time of the Mergers. Pursuant to the Merger Agreement, holders of VantageSouth common stock received 0.3125 shares of voting common stock of the Company for each share of VantageSouth common stock. Holders of Piedmont common stock received (i) 6.28597 shares of voting common stock of the Company; (ii) $6.6878 in cash; and (iii) a right to receive a pro rata portion of certain shares of voting common stock of the Company at a later date if such shares do not become payable under the Piedmont Phantom Equity Plan. Immediately following the Mergers, VantageSouth Bank, the wholly owned banking subsidiary of VantageSouth, merged with and into Yadkin Bank. | ||||||||||||||||
The Mergers were accounted for as a reverse merger using the acquisition method of accounting primarily due to the relative voting interests in the Company upon completion of the Mergers. As a result, Piedmont and its consolidated subsidiaries represent the accounting acquirer, and Yadkin represents the accounting acquiree. Therefore, the historical financial results of the Company prior to the Mergers reflect the historical balances of Piedmont, and the financial results of the Company after the Mergers reflect the combined organization. In addition, the assets and liabilities of Yadkin as of the date of the Mergers have been recorded at estimated fair value and added to those of Piedmont. The Company has substantially completed its valuations of Yadkin's assets and liabilities but may refine those valuations for up to a year from the date of the Mergers. The Mergers had a significant impact on all aspects of the Company's financial statements, and as a result, financial results after the Mergers may not be comparable to financial results prior to the Mergers. | ||||||||||||||||
The Piedmont Phantom Equity Plan, which is a type of deferred compensation plan, was assumed by the Company in the Mergers. A total of 856,447 shares of Yadkin’s voting common stock that otherwise would have been issued to Piedmont shareholders as merger consideration if the Piedmont Phantom Equity Plan did not exist was issued to a rabbi trust established by Yadkin to serve as a source of payment for both (i) payments due under the Piedmont Phantom Equity Plan and (ii) contingent merger consideration payable to former holders of Piedmont common stock. | ||||||||||||||||
From an accounting perspective, 28,405 shares of Yadkin's Series T and T-ACB Preferred Stock were assumed by the Company in the Mergers. The Series T and T-ACB Preferred Stock rank equally and have identical terms. They have no maturity date and pay cumulative dividends of 9.0 percent annually. | ||||||||||||||||
As the legal acquirer, Yadkin issued 17.3 million shares of voting common stock in connection with the Mergers, which represented approximately 55 percent of the voting interests in the Company at the time of the Mergers. Guidance in FASB ASC 805-40-30-2 explains that the purchase price in a reverse merger is determined "based on the number of equity interests the legal [acquiree] would have had to issue to give the owners of the legal [acquirer] the same equity interest in the combined entity that results from the reverse acquisition." The first step in estimating the purchase price in the Mergers is to determine the ownership of the combined institution following the Mergers. The table below summarizes, for each shareholder group immediately prior to the Mergers, the ownership of Yadkin common stock immediately following the Mergers as well as the market capitalization of the combined institution using Yadkin’s stock price at the time of the Mergers. | ||||||||||||||||
Yadkin Financial Corporation Ownership and Market Value Table | ||||||||||||||||
Shareholder Groups Immediately Prior to Mergers | Number of Outstanding YDKN Shares | Percentage Ownership | Market Value at $19.41 YDKN Share Price | |||||||||||||
Piedmont shareholders | 9,219,406 | 29.1 | % | $ | 178,949 | |||||||||||
VantageSouth shareholders (excluding Piedmont) | 7,195,127 | 22.7 | 139,657 | |||||||||||||
Shares issued and held in Rabbi Trust | 856,447 | 2.7 | 16,624 | |||||||||||||
Total Piedmont and VantageSouth shareholders | 17,270,980 | 54.6 | 335,230 | |||||||||||||
Yadkin shareholders | 14,380,127 | 45.4 | 279,118 | |||||||||||||
Total | 31,651,107 | 100 | % | $ | 614,348 | |||||||||||
Next, the number of shares Piedmont would have had to issue to give Yadkin and other owners the same percentage ownership in the combined institution is calculated in the table below. | ||||||||||||||||
Hypothetical Piedmont Ownership | ||||||||||||||||
Shareholder Groups Immediately Prior to Mergers | Number of Outstanding Piedmont Shares | Percentage Ownership | ||||||||||||||
Piedmont shareholders | 1,466,664 | 29.1 | % | |||||||||||||
VantageSouth shareholders (excluding Piedmont) | 1,144,633 | 22.7 | ||||||||||||||
Shares issued and held in Rabbi Trust | 136,247 | 2.7 | ||||||||||||||
Total Piedmont and VantageSouth shareholders | 2,747,544 | 54.6 | ||||||||||||||
Yadkin shareholders | 2,287,654 | 45.4 | ||||||||||||||
Total | 5,035,198 | 100 | % | |||||||||||||
Finally, the purchase price is calculated based on the number of hypothetical Piedmont shares issued to Yadkin shareholders multiplied by the share price as demonstrated in the table below. Because Piedmont was the accounting acquirer in the Mergers and was a private company, the market price per share was derived from Yadkin’s closing stock price at the time of the Mergers. The equivalent Piedmont market price per share was calculated based on the 6.28597 exchange ratio in the Mergers. | ||||||||||||||||
Calculation of Purchase Price | ||||||||||||||||
Equivalent Piedmont market price per share | $ | 122.01 | ||||||||||||||
Number of Piedmont shares issued to Yadkin shareholders | 2,287,654 | |||||||||||||||
Purchase price (in thousands) | $ | 279,115 | ||||||||||||||
The following table presents the Yadkin assets acquired, liabilities assumed and other equity interests as of July 4, 2014 as well as the related purchase price allocation and calculation of the residual goodwill. | ||||||||||||||||
As Reported by Yadkin at | Initial | Measurement Period Adjustments | As Reported by the Company at | |||||||||||||
4-Jul-14 | Fair Value Adjustments | 4-Jul-14 | ||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 36,116 | $ | — | $ | — | $ | 36,116 | ||||||||
Investment securities available for sale | 259,143 | (1,488 | ) | (a) | — | 257,655 | ||||||||||
Loans held for sale | 15,696 | — | — | 15,696 | ||||||||||||
Loans, net | 1,403,419 | (30,740 | ) | (b) | — | 1,372,679 | ||||||||||
Federal Home Loan Bank stock, at cost | 3,778 | — | — | 3,778 | ||||||||||||
Premises and equipment | 40,204 | (2,344 | ) | (c) | — | 37,860 | ||||||||||
Bank-owned life insurance | 27,306 | — | — | 27,306 | ||||||||||||
Foreclosed assets | 2,271 | (601 | ) | (d) | — | 1,670 | ||||||||||
Deferred tax asset, net | 16,955 | 5,939 | (e) | — | 22,894 | |||||||||||
Goodwill | — | 124,172 | (f) | 657 | (n) | 124,829 | ||||||||||
Other intangible assets | 1,665 | 10,965 | (g) | 321 | (o) | 12,951 | ||||||||||
Accrued interest receivable and other assets | 16,330 | (2,229 | ) | (h) | 542 | (p) | 14,643 | |||||||||
Total assets | 1,822,883 | 103,674 | 1,520 | 1,928,077 | ||||||||||||
Liabilities: | ||||||||||||||||
Deposits | $ | 1,509,581 | $ | 5,019 | (i) | $ | — | $ | 1,514,600 | |||||||
Short-term borrowings | 72,879 | — | — | 72,879 | ||||||||||||
Long-term debt | 38,217 | (15,486 | ) | (j) | — | 22,731 | ||||||||||
Accrued interest payable and other liabilities | 8,448 | (338 | ) | (k) | 1,520 | (q) | 9,630 | |||||||||
Total liabilities | 1,629,125 | (10,805 | ) | 1,520 | 1,619,840 | |||||||||||
Net assets acquired | 193,758 | 114,479 | — | 308,237 | ||||||||||||
Other equity interests: | ||||||||||||||||
Preferred stock | 28,405 | — | (l) | — | 28,405 | |||||||||||
Common stock warrants | 1,850 | (1,133 | ) | (m) | — | 717 | ||||||||||
Total other equity interests | 30,255 | (1,133 | ) | — | 29,122 | |||||||||||
Purchase price | $ | 279,115 | ||||||||||||||
Explanation of fair value adjustments | ||||||||||||||||
(a) Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. | ||||||||||||||||
(b) Adjustment reflects the elimination of Yadkin's historical allowance for loan losses of $16.4 million and the recording of a fair value discount of $47.2 million on the loan portfolio. The fair value discount was calculated by forecasting cash flows over the expected remaining life of each loan and discounting those cash flows to present value using current market rates for similar loans. Forecasted cash flows include an estimate of lifetime credit losses on the loan portfolio. | ||||||||||||||||
(c) Adjustment reflects fair value adjustments on certain acquired branch offices as well as certain software and computer equipment. | ||||||||||||||||
(d) Adjustment reflects the write down of certain foreclosed assets based on current estimates of property values given current market conditions and additional discounts based on the Company's planned disposition strategy. | ||||||||||||||||
(e) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | ||||||||||||||||
(f) Goodwill represents the excess of the purchase price over the fair value of acquired net assets. | ||||||||||||||||
(g) Adjustment reflects the estimated fair value of the acquired core deposit intangible. | ||||||||||||||||
(h) Adjustment reflects the impact of fair value adjustments on other assets, which include mortgage servicing assets, certain unusable prepaid expenses, and the elimination of accrued interest on purchased credit-impaired loans. | ||||||||||||||||
(i) Adjustment reflects the fair value premium on time deposits, which was calculated by discounting future contractual interest payments at a current market interest rate. | ||||||||||||||||
(j) Adjustments reflect the fair value adjustments for subordinated debt issued to fund trust preferred securities and long-term Federal Home Loan Bank ("FHLB") advances, which were calculated by discounting future contractual interest payments at a current market interest rate for similar instruments. For FHLB advances, the fair value adjustment is consistent with the prepayment penalty the FHLB would charge to terminate the advance. | ||||||||||||||||
(k) Adjustments reflect accruals and fair value adjustments for other liabilities, which include the write-off of unearned income, deferred gains, and accrued liabilities that will not be paid. | ||||||||||||||||
(l) No fair value adjustments were made to Yadkin's outstanding preferred stock. The current preferred dividend rate of 9.0 percent approximates the current market yield for issuances of similar perpetual preferred stock. The preferred stock is currently redeemable at the liquidation value, and the Company expects the remaining life of this preferred stock to be relatively short. | ||||||||||||||||
(m) The fair value of the common stock warrants was estimated using a Black-Scholes option pricing model assuming all 91,178 warrants will remain outstanding through expiration on July 24, 2019. Assumptions and inputs used in the option pricing model included stock price volatility of 48.6 percent, no dividends, a risk free interest rate of 1.74 percent, and an exercise price of $21.90 per common warrant. | ||||||||||||||||
(n) Amount reflects adjustments to goodwill resulting from adjustments (o), (p) and (q). | ||||||||||||||||
(o) Amount reflects an adjustment to estimated fair value of the acquired core deposit intangible. | ||||||||||||||||
Explanation of fair value adjustments (continued) | ||||||||||||||||
(p) Amount reflects adjustments to acquired deferred tax assets and the tax impact of adjustments (o) and (q). | ||||||||||||||||
(q) Amount reflects the adjustment of change in control obligations existing under various employment agreements that were triggered by the Mergers. | ||||||||||||||||
ECB Bancorp, Inc. Merger | ||||||||||||||||
On April 1, 2013, ECB Bancorp, Inc. ("ECB") was merged with and into VantageSouth (the "ECB Merger"). The ECB Merger was completed pursuant to an Agreement and Plan of Merger dated as of September 25, 2012 (the "ECB Merger Agreement"). Immediately following the ECB Merger, The East Carolina Bank, a wholly-owned subsidiary of ECB, was merged with and into the Bank. Upon the closing of the ECB Merger, each outstanding share of ECB common stock was converted into the right to receive 3.55 shares of common stock of VantageSouth. The aggregate merger consideration consisted of 10.3 million shares of VantageSouth's common stock. Based upon the market price of VantageSouth's common stock immediately prior to the ECB Merger, the transaction value was $40,629. | ||||||||||||||||
Pursuant to the Merger Agreement, VantageSouth agreed to exchange each share of ECB’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, into one share of VantageSouth's Fixed Rate Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred Stock"). At the closing of the ECB Merger, VantageSouth also issued a warrant to purchase 514,693.2 shares of VantageSouth's common stock to the U.S. Department of the Treasury (“Treasury”) in exchange for the warrant issued by ECB to Treasury on January 16, 2009 to purchase 144,984 shares of ECB’s common stock. The warrant issuance reflected the exchange ratio associated with the ECB Merger. | ||||||||||||||||
Because ECB merged into VantageSouth, which was a controlled subsidiary of Piedmont, the shares of VantageSouth common stock issued to legacy ECB shareholders as merger consideration as well as the Series B Preferred stock and related common stock warrants assumed by VantageSouth in the ECB Merger were classified on Piedmont's consolidated balance sheets as part of non-controlling interests. The Series B Preferred Stock was subsequently redeemed by VantageSouth on February 19, 2014, and the related common stock warrants were subsequently repurchased by VantageSouth on June 11, 2014. | ||||||||||||||||
The following table presents the ECB assets acquired, liabilities assumed and other equity interests as of April 1, 2013, as well as the related purchase price allocation and calculation of the gain on acquisition. | ||||||||||||||||
As Reported by ECB at | Initial | Measurement Period Adjustments | As Reported by the Company at | |||||||||||||
1-Apr-13 | Fair Value Adjustments | 1-Apr-13 | ||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 24,008 | $ | — | $ | — | $ | 24,008 | ||||||||
Investment securities available for sale | 289,058 | 301 | (a) | — | 289,359 | |||||||||||
Loans held for sale | 3,857 | 9,790 | (b) | (191 | ) | (m) | 13,456 | |||||||||
Loans, net | 483,474 | (30,420 | ) | (c) | — | 453,054 | ||||||||||
Federal Home Loan Bank stock, at cost | 3,150 | — | — | 3,150 | ||||||||||||
Premises and equipment | 25,633 | (1,177 | ) | (d) | 135 | (m) | 24,591 | |||||||||
Bank-owned life insurance | 12,249 | — | — | 12,249 | ||||||||||||
Foreclosed assets | 7,090 | (717 | ) | (e) | (305 | ) | (m) | 6,068 | ||||||||
Deferred tax asset, net | 6,986 | 9,082 | (f) | 540 | (m) | 16,608 | ||||||||||
Other intangible assets | — | 4,307 | (g) | — | 4,307 | |||||||||||
Accrued interest receivable and other assets | 10,423 | (665 | ) | (h) | (922 | ) | (m) | 8,836 | ||||||||
Total assets | 865,928 | (9,499 | ) | (743 | ) | 855,686 | ||||||||||
Liabilities: | ||||||||||||||||
Deposits | $ | 731,926 | $ | 4,188 | (i) | $ | — | $ | 736,114 | |||||||
Short-term borrowings | 34,284 | — | — | 34,284 | ||||||||||||
Long-term debt | 16,000 | 460 | (j) | — | 16,460 | |||||||||||
Accrued interest payable and other liabilities | 2,867 | 148 | (k) | 116 | (m) | 3,131 | ||||||||||
Total liabilities | 785,077 | 4,796 | 116 | 789,989 | ||||||||||||
Net assets acquired | 80,851 | (14,295 | ) | (859 | ) | 65,697 | ||||||||||
Other equity interests: | ||||||||||||||||
Preferred stock | 17,660 | (107 | ) | (l) | — | 17,553 | ||||||||||
Common stock warrant | 878 | (745 | ) | (l) | — | 133 | ||||||||||
Total other equity interests | 18,538 | (852 | ) | — | 17,686 | |||||||||||
Gain on acquisition | 7,382 | |||||||||||||||
Purchase price | $ | 40,629 | ||||||||||||||
Explanation of fair value adjustments | ||||||||||||||||
(a) Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. | ||||||||||||||||
(b) Adjustment reflect the reclassification of the fair value of certain loans identified by management as being held for sale at acquisition. | ||||||||||||||||
(c) Adjustment reflects the elimination of ECB's historical allowance for loan losses and the recording of a fair value discount on the loan portfolio. The fair value discount was calculated by forecasting cash flows over the expected remaining life of each loan and discounting those cash flows to present value using current market rates for similar loans. Forecasted cash flows include an estimate of lifetime credit losses on the loan portfolio. | ||||||||||||||||
(d) Adjustment reflects fair value adjustments on certain acquired branch offices as well as certain software and computer equipment. | ||||||||||||||||
(e) Adjustment reflects the write down of certain foreclosed assets based on current estimates of property values given current market conditions and additional discounts based on the Company's planned disposition strategy. | ||||||||||||||||
(f) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | ||||||||||||||||
(g) Adjustment reflects the fair value of the acquired core deposit intangible. | ||||||||||||||||
(h) Adjustment reflects the impact of fair value adjustments on other assets, which include the write down of certain unusable prepaid expenses and the elimination of accrued interest on purchased credit-impaired loans. | ||||||||||||||||
(i) Adjustment reflects the fair value premium on time deposits, which was calculated by discounting future contractual interest payments at a current market interest rate. | ||||||||||||||||
(j) Adjustment reflects the fair value premium on long-term FHLB advances, which was calculated by discounting future contractual interest payments at a current market interest rate. This fair value premium is also consistent with the prepayment penalty the FHLB would charge to terminate the advance. | ||||||||||||||||
(k) Adjustment reflects the impact of fair value adjustments on other liabilities, which primarily includes the accrual of a preferred stock dividend at acquisition. | ||||||||||||||||
(l) Amount reflects the adjustment to record other equity interests at fair value. The fair value of preferred stock issued to Treasury was estimated by discounting future contractual dividend payments at a current market interest rate for preferred stocks of issuers with similar risk. The assumed liquidation date of the preferred stock was February 15, 2014, which was the date the dividend reset from 5 to 9 percent. The fair value of the common stock warrant issued to Treasury was estimated using a Black-Scholes option pricing model assuming a warrant life through the dividend reset date. | ||||||||||||||||
(m) Adjustments reflect changes to acquisition date fair values of certain assets based on additional information received post-acquisition within the measurement period. Measurement period adjustments included tax-effected adjustments to reduce the fair value of a non-marketable investment, to dispose of other assets with no value at the merger, to reduce the fair value of certain distressed loans held for sale, to reduce the fair value of certain other real estate owned, to recognize a liability for outstanding ECB employee credit card balances, and to increase the fair value of a bank-owned office. | ||||||||||||||||
Supplemental Pro Forma Information | ||||||||||||||||
The table below presents supplemental pro forma information as if the Company's Mergers with VantageSouth and Piedmont as well as the ECB Merger had occurred on January 1, 2013. Pro forma results include adjustments for amortization and accretion of estimated fair value adjustments and do not include any projected cost savings or other anticipated benefits of the Mergers. Therefore, the pro forma financial information is not indicative of the results of operations that would have occurred had the transactions been effected on the assumed date. | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Total interest and non-interest income | $ | 212,531 | $ | 208,608 | ||||||||||||
Net interest income | $ | 157,805 | $ | 153,437 | ||||||||||||
Net income | $ | 34,370 | $ | 23,009 | ||||||||||||
Net income available to common shareholders | $ | 31,934 | $ | 20,867 | ||||||||||||
Basic income per common share | $ | 1.02 | $ | 0.73 | ||||||||||||
Diluted income per common share | $ | 1.02 | $ | 0.73 | ||||||||||||
Weighted average basic common shares outstanding | 31,295,562 | 28,568,000 | ||||||||||||||
Weighted average diluted common shares outstanding | 31,375,585 | 28,640,684 | ||||||||||||||
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
INVESTMENT SECURITIES | INVESTMENT SECURITIES | ||||||||||||||||||||||||
The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale and held to maturity by major classification. | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
GSE obligations | $ | 14,914 | $ | 30 | $ | — | $ | 14,944 | |||||||||||||||||
SBA-guaranteed securities | 60,408 | 84 | 372 | 60,120 | |||||||||||||||||||||
Mortgage-backed securities issued by GSE | 428,076 | 1,086 | 3,879 | 425,283 | |||||||||||||||||||||
Corporate bonds | 118,799 | 1,261 | 148 | 119,912 | |||||||||||||||||||||
Non-agency RMBS | 4,961 | 3 | 1 | 4,963 | |||||||||||||||||||||
Non-agency CMBS | 3,576 | 2 | — | 3,578 | |||||||||||||||||||||
Municipal bonds | 39,907 | 355 | 4 | 40,258 | |||||||||||||||||||||
Other debt securities | 498 | — | — | 498 | |||||||||||||||||||||
Marketable equity securities | 3,017 | 1 | 153 | 2,865 | |||||||||||||||||||||
Total securities available for sale | $ | 674,156 | $ | 2,822 | $ | 4,557 | $ | 672,421 | |||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||
Municipal bonds | $ | 39,620 | $ | 966 | $ | — | $ | 40,586 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
GSE obligations | $ | 14,834 | $ | — | $ | 161 | $ | 14,673 | |||||||||||||||||
SBA-guaranteed securities | 66,579 | 52 | 751 | 65,880 | |||||||||||||||||||||
Mortgage-backed securities issued by GSE | 216,818 | 69 | 11,627 | 205,260 | |||||||||||||||||||||
Corporate bonds | 109,423 | 1,800 | 483 | 110,740 | |||||||||||||||||||||
Non-agency CMBS | 5,867 | 71 | — | 5,938 | |||||||||||||||||||||
Municipal bonds | 600 | 1 | — | 601 | |||||||||||||||||||||
Other debt securities | 253 | — | — | 253 | |||||||||||||||||||||
Marketable equity securities | 677 | 366 | — | 1,043 | |||||||||||||||||||||
Total securities available for sale | $ | 415,051 | $ | 2,359 | $ | 13,022 | $ | 404,388 | |||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||
Corporate bonds | $ | 500 | $ | — | $ | — | $ | 500 | |||||||||||||||||
The following tables summarize gross unrealized losses and fair values, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
SBA-guaranteed securities | $ | 94 | $ | 1 | $ | 41,950 | $ | 371 | $ | 42,044 | $ | 372 | |||||||||||||
Mortgage-backed securities issued by GSE | 152,186 | 1,117 | 149,746 | 2,762 | 301,932 | 3,879 | |||||||||||||||||||
Corporate bonds | 18,123 | 64 | 3,767 | 84 | 21,890 | 148 | |||||||||||||||||||
Non-agency RMBS | 1,318 | 1 | — | — | 1,318 | 1 | |||||||||||||||||||
Municipal bonds | 1,953 | 4 | — | — | 1,953 | 4 | |||||||||||||||||||
Equity securities | 2,711 | 153 | — | — | 2,711 | 153 | |||||||||||||||||||
Total temporarily impaired AFS securities | $ | 176,385 | $ | 1,340 | $ | 195,463 | $ | 3,217 | $ | 371,848 | $ | 4,557 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
GSE obligations | $ | 14,673 | $ | 161 | $ | — | $ | — | $ | 14,673 | $ | 161 | |||||||||||||
SBA-guaranteed securities | 57,277 | 751 | — | — | 57,277 | 751 | |||||||||||||||||||
Mortgage-backed securities issued by GSE | 198,885 | 11,627 | — | — | 198,885 | 11,627 | |||||||||||||||||||
Corporate bonds | 19,420 | 483 | — | — | 19,420 | 483 | |||||||||||||||||||
Total temporarily impaired AFS securities | $ | 290,255 | $ | 13,022 | $ | — | $ | — | $ | 290,255 | $ | 13,022 | |||||||||||||
Unrealized losses on investment securities available for sale as of December 31, 2014 related to 76 mortgage-backed securities issued by U.S. government-sponsored enterprises ("GSEs"), 19 securities guaranteed by the U.S. Small Business Administration ("SBA"), 5 investment grade corporate bonds, 4 marketable equity securities, 1 GSE obligation, 1 non-agency residential mortgage-backed security, and 6 municipal bonds. Unrealized losses on investment securities as of December 31, 2013 related to 65 mortgage-backed securities issued by GSEs, 23 SBA-guaranteed securities, 6 investment grade corporate bonds, and 2 GSE obligations. As of December 31, 2014, 66 securities had been in an unrealized loss position for more than a twelve month period. The Company had $84 in gross unrealized losses on corporate bonds as of December 31, 2014 that had been in an unrealized loss position for more than twelve months, which were the only securities in this position not issued or guaranteed by a U.S. government agency or GSE. Based on a review of financial statements and other financial data for these corporate issuers, the Company does not believe the unrealized losses on these bonds were due to credit events. | |||||||||||||||||||||||||
The securities in an unrealized loss position as of December 31, 2014 continue to perform and are expected to perform through maturity, and the issuers have not experienced significant adverse events that would call into question their ability to repay these debt obligations according to contractual terms. Further, because the Company does not intend to sell these investments and does not believe that it will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, unrealized losses on such securities were not considered to represent other-than-temporary impairment as of December 31, 2014. | |||||||||||||||||||||||||
As of December 31, 2014, the Company held no individual investment securities with an aggregate book value greater than 10 percent of total shareholders’ equity. As of December 31, 2014 and 2013, investment securities with carrying values of $314,184 and $226,048, respectively, were pledged to secure public deposits, borrowings and for other purposes required or permitted by law. | |||||||||||||||||||||||||
The amortized cost and fair values of securities available for sale, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Due within one year | $ | 30,365 | $ | 30,536 | $ | 677 | $ | 678 | |||||||||||||||||
Due after one year through five years | 294,557 | 295,252 | 182,777 | 182,713 | |||||||||||||||||||||
Due after five years through ten years | 313,733 | 311,313 | 173,624 | 166,765 | |||||||||||||||||||||
Due after ten years | 32,484 | 32,455 | 57,296 | 53,189 | |||||||||||||||||||||
Marketable equity securities | 3,017 | 2,865 | 677 | 1,043 | |||||||||||||||||||||
$ | 674,156 | $ | 672,421 | $ | 415,051 | $ | 404,388 | ||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||
Due after one year through five years | $ | 20,177 | $ | 20,747 | $ | 500 | $ | 500 | |||||||||||||||||
Due after five years through ten years | 15,836 | 16,092 | — | — | |||||||||||||||||||||
Due after ten years | 3,607 | 3,747 | — | — | |||||||||||||||||||||
$ | 39,620 | $ | 40,586 | $ | 500 | $ | 500 | ||||||||||||||||||
The following table summarizes securities gains (losses) for the periods presented. | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Gross gains on sales of securities available for sale | $ | 453 | $ | 1,250 | $ | 1,335 | |||||||||||||||||||
Gross losses on sales of securities available for sale | (327 | ) | (35 | ) | (84 | ) | |||||||||||||||||||
Total securities gains (losses) | $ | 126 | $ | 1,215 | $ | 1,251 | |||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||
The following table summarizes the Company's loans by type. | |||||||||||||||||||||||||||||||||
December 31, | December 31, 2013 | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,355,536 | $ | 670,293 | |||||||||||||||||||||||||||||
Commercial and industrial | 468,848 | 230,614 | |||||||||||||||||||||||||||||||
Construction and development | 370,807 | 175,794 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 360,249 | 191,378 | |||||||||||||||||||||||||||||||
Construction and development | 30,061 | 22,520 | |||||||||||||||||||||||||||||||
Home equity | 276,662 | 94,390 | |||||||||||||||||||||||||||||||
Other consumer | 36,874 | 8,332 | |||||||||||||||||||||||||||||||
Gross loans | 2,899,037 | 1,393,321 | |||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Deferred loan fees | (771 | ) | (488 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (7,817 | ) | (7,043 | ) | |||||||||||||||||||||||||||||
Net loans | $ | 2,890,449 | $ | 1,385,790 | |||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, loans with a recorded investment of $828,365 and $424,414, respectively, were pledged to secure borrowings or available lines of credit with correspondent banks. | |||||||||||||||||||||||||||||||||
The Company has granted loans to certain directors and executive officers of the Company and their related interests. Such loans are made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other borrowers and, in management’s opinion, do not involve more than the normal risk of collectability. All loans to directors and executive officers or their related interests are submitted to the Board of Directors for approval. A summary of contractual obligations due from directors and executive officers, and their related interests, follows. | |||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Loans to directors and officers at beginning of period | $ | 26,437 | $ | 29,999 | $ | 30,910 | |||||||||||||||||||||||||||
Additions for new directors | 5,850 | 1,232 | — | ||||||||||||||||||||||||||||||
Reductions for retirement of directors | (24,835 | ) | (1,816 | ) | — | ||||||||||||||||||||||||||||
New advances to directors and officers | 1,092 | 8 | 1,741 | ||||||||||||||||||||||||||||||
Payoffs and principal reductions | (1,145 | ) | (2,986 | ) | (2,652 | ) | |||||||||||||||||||||||||||
Loans to directors and officers at end of period | $ | 7,398 | $ | 26,437 | $ | 29,999 | |||||||||||||||||||||||||||
The Company completed various sales of loans held for investment to investors during 2014, 2013 and 2012. The proceeds from these loan sales totaled $2,076, $2,595 and $20,497 in 2014, 2013 and 2012, respectively. There was no gain or loss recorded on these loan sales. In the fourth quarter of 2012, the Company purchased commercial and industrial loans from an unrelated third party. These loans were recorded at their estimated fair value of $7,698, which was equal to the purchase price at the date of purchase. | |||||||||||||||||||||||||||||||||
Purchased Credit-Impaired Loans | |||||||||||||||||||||||||||||||||
Loans for which it is probable at acquisition that all contractually required payments will not be collected are considered PCI loans. The following table relates to acquired Yadkin and ECB PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the respective merger date. | |||||||||||||||||||||||||||||||||
Yadkin Merger July 4, 2014 | ECB Merger April 1, 2013 | ||||||||||||||||||||||||||||||||
Contractually required payments | $ | 110,365 | $ | 61,801 | |||||||||||||||||||||||||||||
Nonaccretable difference | (21,102 | ) | (11,433 | ) | |||||||||||||||||||||||||||||
Cash flows expected to be collected at acquisition | 89,263 | 50,368 | |||||||||||||||||||||||||||||||
Accretable yield | (8,604 | ) | (4,242 | ) | |||||||||||||||||||||||||||||
Fair value of PCI loans at acquisition | $ | 80,659 | $ | 46,126 | |||||||||||||||||||||||||||||
The following table summarizes changes in accretable yield, or income expected to be collected, related to all of the Company's PCI loans for the periods presented. | |||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 25,349 | $ | 27,632 | $ | 29,645 | |||||||||||||||||||||||||||
Loans purchased | 8,604 | 4,242 | — | ||||||||||||||||||||||||||||||
Accretion of income | (13,764 | ) | (13,640 | ) | (15,252 | ) | |||||||||||||||||||||||||||
Reclassifications from nonaccretable difference | 4,091 | 9,595 | 14,031 | ||||||||||||||||||||||||||||||
Other, net | 901 | (2,480 | ) | (792 | ) | ||||||||||||||||||||||||||||
Balance, end of period | $ | 25,181 | $ | 25,349 | $ | 27,632 | |||||||||||||||||||||||||||
The outstanding balance of PCI loans consists of the undiscounted sum of all amounts, including amounts deemed principal, interest, fees, penalties, and other under the loan, owed by the borrower at the reporting date, whether or not currently due and whether or not any such amounts have been written or charged off. The unpaid principal balance of PCI loans was $228,956 and $203,179 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
Purchased Non-impaired Loans | |||||||||||||||||||||||||||||||||
Purchased non-impaired loans are also recorded at fair value at acquisition, and the related fair value discount or premium is recognized as an adjustment to yield over the remaining life of each loan. The following table relates to acquired Yadkin and ECB purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the respective merger date. | |||||||||||||||||||||||||||||||||
Yadkin Merger July 4, 2014 | ECB Merger April 1, 2013 | ||||||||||||||||||||||||||||||||
Contractually required payments | $ | 1,502,793 | $ | 499,963 | |||||||||||||||||||||||||||||
Fair value of acquired loans at acquisition | 1,292,020 | 406,928 | |||||||||||||||||||||||||||||||
Contractual cash flows not expected to be collected | 36,219 | 10,098 | |||||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||||||
The following tables summarize the activity in the allowance for loan losses for the periods presented. | |||||||||||||||||||||||||||||||||
Commercial | Commercial and Industrial | Commercial Construction | Residential | Consumer Construction | Home Equity | Other Consumer | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 2,419 | $ | 805 | $ | 1,400 | $ | 1,673 | $ | 187 | $ | 476 | $ | 83 | $ | 7,043 | |||||||||||||||||
Charge-offs | (366 | ) | (1,034 | ) | (367 | ) | (591 | ) | — | (429 | ) | (354 | ) | (3,141 | ) | ||||||||||||||||||
Recoveries | 46 | 88 | 69 | 131 | — | 123 | 45 | 502 | |||||||||||||||||||||||||
Provision for loan losses | 697 | 1,415 | 589 | 24 | 7 | 376 | 305 | 3,413 | |||||||||||||||||||||||||
Ending balance | $ | 2,796 | $ | 1,274 | $ | 1,691 | $ | 1,237 | $ | 194 | $ | 546 | $ | 79 | $ | 7,817 | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,524 | $ | 798 | $ | 597 | $ | 940 | $ | 18 | $ | 85 | $ | 36 | $ | 3,998 | |||||||||||||||||
Charge-offs | (20 | ) | (483 | ) | (723 | ) | (672 | ) | — | (558 | ) | (265 | ) | (2,721 | ) | ||||||||||||||||||
Recoveries | 26 | 23 | 47 | 146 | — | 39 | 16 | 297 | |||||||||||||||||||||||||
Provision for loan losses | 889 | 467 | 1,479 | 1,259 | 169 | 910 | 296 | 5,469 | |||||||||||||||||||||||||
Ending balance | $ | 2,419 | $ | 805 | $ | 1,400 | $ | 1,673 | $ | 187 | $ | 476 | $ | 83 | $ | 7,043 | |||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 457 | $ | 197 | $ | 207 | $ | 128 | $ | 28 | $ | 51 | $ | 13 | $ | 1,081 | |||||||||||||||||
Charge-offs | — | (250 | ) | (400 | ) | (341 | ) | (15 | ) | (1,596 | ) | (147 | ) | (2,749 | ) | ||||||||||||||||||
Recoveries | — | 19 | 125 | 153 | — | 6 | 9 | 312 | |||||||||||||||||||||||||
Provision for loan losses | 1,067 | 832 | 665 | 1,000 | 5 | 1,624 | 161 | 5,354 | |||||||||||||||||||||||||
Ending balance | $ | 1,524 | $ | 798 | $ | 597 | $ | 940 | $ | 18 | $ | 85 | $ | 36 | $ | 3,998 | |||||||||||||||||
The following tables summarize the ending allowance for loans losses and the recorded investment in loans by portfolio segment and impairment method. | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Commercial | Commercial and Industrial | Commercial Construction | Residential | Consumer Construction | Home Equity | Other Consumer | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 158 | $ | 229 | $ | — | $ | — | $ | — | $ | 3 | $ | — | $ | 390 | |||||||||||||||||
Collectively evaluated for impairment | 2,177 | 952 | 1,590 | 681 | 194 | 456 | 79 | 6,129 | |||||||||||||||||||||||||
Purchased credit-impaired | 461 | 93 | 101 | 556 | — | 87 | — | 1,298 | |||||||||||||||||||||||||
Total | $ | 2,796 | $ | 1,274 | $ | 1,691 | $ | 1,237 | $ | 194 | $ | 546 | $ | 79 | $ | 7,817 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,398 | $ | 2,343 | $ | 910 | $ | 928 | $ | — | $ | 406 | $ | — | $ | 9,985 | |||||||||||||||||
Collectively evaluated for impairment | 1,227,597 | 452,487 | 337,540 | 328,693 | 28,436 | 271,928 | 36,244 | 2,682,925 | |||||||||||||||||||||||||
Purchased credit-impaired | 122,541 | 14,018 | 32,357 | 30,628 | 1,625 | 4,328 | 630 | 206,127 | |||||||||||||||||||||||||
Total | $ | 1,355,536 | $ | 468,848 | $ | 370,807 | $ | 360,249 | $ | 30,061 | $ | 276,662 | $ | 36,874 | $ | 2,899,037 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Commercial | Commercial and Industrial | Commercial Construction | Residential | Consumer Construction | Home Equity | Other Consumer | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 57 | $ | 323 | $ | — | $ | — | $ | — | $ | 270 | $ | 2 | $ | 652 | |||||||||||||||||
Collectively evaluated for impairment | 1,322 | 482 | 1,139 | 688 | 187 | 153 | 59 | 4,030 | |||||||||||||||||||||||||
Purchased credit-impaired | 1,040 | — | 261 | 985 | — | 53 | 22 | 2,361 | |||||||||||||||||||||||||
Total | $ | 2,419 | $ | 805 | $ | 1,400 | $ | 1,673 | $ | 187 | $ | 476 | $ | 83 | $ | 7,043 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,590 | $ | 343 | $ | 2,609 | $ | 695 | $ | 242 | $ | 424 | $ | 13 | $ | 8,916 | |||||||||||||||||
Collectively evaluated for impairment | 562,081 | 219,251 | 137,911 | 164,106 | 20,447 | 92,592 | 7,982 | 1,204,370 | |||||||||||||||||||||||||
Purchased credit-impaired | 103,622 | 11,020 | 35,274 | 26,577 | 1,831 | 1,374 | 337 | 180,035 | |||||||||||||||||||||||||
Total | $ | 670,293 | $ | 230,614 | $ | 175,794 | $ | 191,378 | $ | 22,520 | $ | 94,390 | $ | 8,332 | $ | 1,393,321 | |||||||||||||||||
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans according to credit risk. The Company uses the following general definitions for risk ratings: | |||||||||||||||||||||||||||||||||
• | Pass. These loans range from superior quality with minimal credit risk to loans requiring heightened management attention but that are still an acceptable risk and continue to perform as contracted. | ||||||||||||||||||||||||||||||||
• | Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. | ||||||||||||||||||||||||||||||||
• | Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||||||
• | Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||||||||||||||
The following tables summarize the risk category of loans by class of loans. | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 1,187,938 | $ | 32,142 | $ | 12,915 | $ | — | $ | 1,232,995 | |||||||||||||||||||||||
Commercial and industrial | 433,093 | 15,148 | 6,510 | 79 | 454,830 | ||||||||||||||||||||||||||||
Construction and development | 334,213 | 2,128 | 2,109 | — | 338,450 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 316,743 | 4,527 | 8,351 | — | 329,621 | ||||||||||||||||||||||||||||
Construction and development | 27,447 | 735 | 254 | — | 28,436 | ||||||||||||||||||||||||||||
Home equity | 264,953 | 4,238 | 3,143 | — | 272,334 | ||||||||||||||||||||||||||||
Other consumer | 35,736 | 237 | 269 | 2 | 36,244 | ||||||||||||||||||||||||||||
Total | $ | 2,600,123 | $ | 59,155 | $ | 33,551 | $ | 81 | $ | 2,692,910 | |||||||||||||||||||||||
PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 57,095 | $ | 45,711 | $ | 19,735 | $ | — | $ | 122,541 | |||||||||||||||||||||||
Commercial and industrial | 7,408 | 2,936 | 3,674 | — | 14,018 | ||||||||||||||||||||||||||||
Construction and development | 6,857 | 16,374 | 9,126 | — | 32,357 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 12,703 | 8,206 | 9,719 | — | 30,628 | ||||||||||||||||||||||||||||
Construction and development | 189 | 723 | 713 | — | 1,625 | ||||||||||||||||||||||||||||
Home equity | 143 | 2,827 | 1,358 | — | 4,328 | ||||||||||||||||||||||||||||
Other consumer | 2 | 488 | 140 | — | 630 | ||||||||||||||||||||||||||||
Total | $ | 84,397 | $ | 77,265 | $ | 44,465 | $ | — | $ | 206,127 | |||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 532,669 | $ | 24,245 | $ | 9,757 | $ | — | $ | 566,671 | |||||||||||||||||||||||
Commercial and industrial | 210,382 | 5,195 | 3,993 | 24 | 219,594 | ||||||||||||||||||||||||||||
Construction and development | 134,074 | 3,400 | 2,847 | 199 | 140,520 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 153,123 | 7,812 | 3,866 | — | 164,801 | ||||||||||||||||||||||||||||
Construction and development | 19,566 | 921 | 202 | — | 20,689 | ||||||||||||||||||||||||||||
Home equity | 87,891 | 2,524 | 2,601 | — | 93,016 | ||||||||||||||||||||||||||||
Other consumer | 7,773 | 43 | 179 | — | 7,995 | ||||||||||||||||||||||||||||
Total | $ | 1,145,478 | $ | 44,140 | $ | 23,445 | $ | 223 | $ | 1,213,286 | |||||||||||||||||||||||
PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 53,900 | $ | 35,399 | $ | 14,323 | $ | — | $ | 103,622 | |||||||||||||||||||||||
Commercial and industrial | 7,921 | 2,382 | 669 | 48 | 11,020 | ||||||||||||||||||||||||||||
Construction and development | 9,666 | 17,408 | 7,124 | 1,076 | 35,274 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 13,794 | 7,070 | 5,692 | 21 | 26,577 | ||||||||||||||||||||||||||||
Construction and development | 212 | 510 | 1,109 | — | 1,831 | ||||||||||||||||||||||||||||
Home equity | 28 | 850 | 496 | — | 1,374 | ||||||||||||||||||||||||||||
Other consumer | 21 | 281 | 35 | — | 337 | ||||||||||||||||||||||||||||
Total | $ | 85,542 | $ | 63,900 | $ | 29,448 | $ | 1,145 | $ | 180,035 | |||||||||||||||||||||||
The following tables summarize the past due status of non-PCI loans based on contractual terms. | |||||||||||||||||||||||||||||||||
30-89 Days | 90 Days or Greater | Total | Current | Total | |||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 7,971 | $ | 2,383 | $ | 10,354 | $ | 1,222,641 | $ | 1,232,995 | |||||||||||||||||||||||
Commercial and industrial | 5,612 | 1,707 | 7,319 | 447,511 | 454,830 | ||||||||||||||||||||||||||||
Construction and development | 1,162 | 369 | 1,531 | 336,919 | 338,450 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 4,872 | 2,210 | 7,082 | 322,539 | 329,621 | ||||||||||||||||||||||||||||
Construction and development | 569 | 12 | 581 | 27,855 | 28,436 | ||||||||||||||||||||||||||||
Home equity | 3,985 | 395 | 4,380 | 267,954 | 272,334 | ||||||||||||||||||||||||||||
Other consumer | 797 | 70 | 867 | 35,377 | 36,244 | ||||||||||||||||||||||||||||
Total | $ | 24,968 | $ | 7,146 | $ | 32,114 | $ | 2,660,796 | $ | 2,692,910 | |||||||||||||||||||||||
30-89 Days | 90 Days or Greater | Total | Current | Total | |||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 2,419 | $ | 2,142 | $ | 4,561 | $ | 562,110 | $ | 566,671 | |||||||||||||||||||||||
Commercial and industrial | 1,945 | 505 | 2,450 | 217,144 | 219,594 | ||||||||||||||||||||||||||||
Construction and development | 146 | 1,316 | 1,462 | 139,058 | 140,520 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 5,097 | 1,365 | 6,462 | 158,339 | 164,801 | ||||||||||||||||||||||||||||
Construction and development | 603 | 237 | 840 | 19,849 | 20,689 | ||||||||||||||||||||||||||||
Home equity | 990 | 701 | 1,691 | 91,325 | 93,016 | ||||||||||||||||||||||||||||
Other Consumer | 245 | 136 | 381 | 7,614 | 7,995 | ||||||||||||||||||||||||||||
Total | $ | 11,445 | $ | 6,402 | $ | 17,847 | $ | 1,195,439 | $ | 1,213,286 | |||||||||||||||||||||||
The following table summarizes the recorded investment of non-PCI loans on nonaccrual status and loans greater than 90 days past due and accruing by class. | |||||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Nonaccrual | Loans greater than 90 days past due and accruing | Nonaccrual | Loans greater than 90 days past due and accruing | ||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,685 | $ | — | $ | 4,747 | $ | — | |||||||||||||||||||||||||
Commercial and industrial | 4,594 | 2 | 2,154 | — | |||||||||||||||||||||||||||||
Construction and development | 1,692 | — | 2,632 | — | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 3,755 | — | 2,450 | — | |||||||||||||||||||||||||||||
Construction and development | 254 | — | 653 | — | |||||||||||||||||||||||||||||
Home equity | 1,721 | — | 1,928 | — | |||||||||||||||||||||||||||||
Other consumer | 248 | — | 164 | — | |||||||||||||||||||||||||||||
Total | $ | 17,949 | $ | 2 | $ | 14,728 | $ | — | |||||||||||||||||||||||||
The following table provides information on impaired loans, which excludes PCI loans and loans evaluated collectively as a homogeneous group. | |||||||||||||||||||||||||||||||||
Recorded Investment With a Recorded Allowance | Recorded Investment With no Recorded Allowance | Total | Related | Unpaid Principal Balance | |||||||||||||||||||||||||||||
Allowance | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 885 | $ | 4,513 | $ | 5,398 | $ | 158 | $ | 5,330 | |||||||||||||||||||||||
Commercial and industrial | 525 | 1,818 | 2,343 | 229 | 2,718 | ||||||||||||||||||||||||||||
Construction and development | — | 910 | 910 | — | 1,971 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | — | 928 | 928 | — | 3,863 | ||||||||||||||||||||||||||||
Home equity | 62 | 344 | 406 | 3 | 1,920 | ||||||||||||||||||||||||||||
Total | $ | 1,472 | $ | 8,513 | $ | 9,985 | $ | 390 | $ | 15,802 | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 732 | $ | 3,858 | $ | 4,590 | $ | 57 | $ | 5,257 | |||||||||||||||||||||||
Commercial and industrial | 323 | 20 | 343 | 323 | 343 | ||||||||||||||||||||||||||||
Construction and development | — | 2,609 | 2,609 | — | 3,042 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | — | 695 | 695 | — | 877 | ||||||||||||||||||||||||||||
Construction and development | — | 242 | 242 | — | 255 | ||||||||||||||||||||||||||||
Home equity | 334 | 90 | 424 | 270 | 442 | ||||||||||||||||||||||||||||
Other consumer | 13 | — | 13 | 2 | 13 | ||||||||||||||||||||||||||||
Total | $ | 1,402 | $ | 7,514 | $ | 8,916 | $ | 652 | $ | 10,229 | |||||||||||||||||||||||
The following table provides the average balance of impaired loans for each period presented and interest income recognized during the period in which the loans were considered impaired. | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Average Balance | Interest Income | Average Balance | Interest Income | Average Balance | Interest Income | ||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 7,399 | $ | 75 | $ | 2,964 | $ | 22 | $ | 1,076 | $ | — | |||||||||||||||||||||
Commercial and industrial | 2,599 | 1 | 144 | — | — | — | |||||||||||||||||||||||||||
Construction and development | 2,509 | — | 1,282 | — | 137 | — | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 2,616 | 27 | 1,029 | — | 766 | 4 | |||||||||||||||||||||||||||
Construction and development | 214 | — | 48 | — | — | ||||||||||||||||||||||||||||
Home equity | 998 | — | 1,183 | — | 933 | 4 | |||||||||||||||||||||||||||
Other consumer | 99 | — | 100 | — | 56 | — | |||||||||||||||||||||||||||
Total | $ | 16,434 | $ | 103 | $ | 6,750 | $ | 22 | $ | 2,968 | $ | 8 | |||||||||||||||||||||
The Company may modify certain loans under terms that are below market in order to maximize the amount collected from a borrower that is experiencing financial difficulties. These modifications are considered to be troubled debt restructurings ("TDRs"). TDRs are evaluated individually for impairment based on the collateral value, if the loan is determined to be collateral dependent, or discounted expected cash flows, if the loan is not determined to be collateral dependent. The Company has no commitments to lend additional funds to any borrowers that have had a loan modified in a TDR. The following table provides the number and recorded investment of TDRs outstanding. | |||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Recorded Investment | Number | Recorded Investment | Number | ||||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 4,215 | 7 | $ | 815 | 2 | |||||||||||||||||||||||||||
Commercial and industrial | 172 | 4 | 20 | 1 | |||||||||||||||||||||||||||||
Commercial construction | 131 | 2 | 161 | 1 | |||||||||||||||||||||||||||||
Residential real estate | 1,770 | 6 | 133 | 2 | |||||||||||||||||||||||||||||
Home equity | 83 | 2 | 90 | 2 | |||||||||||||||||||||||||||||
Consumer | — | — | 13 | 1 | |||||||||||||||||||||||||||||
Total | $ | 6,371 | 21 | $ | 1,232 | 9 | |||||||||||||||||||||||||||
The following tables provide the number and recorded investment of TDRs modified and defaulted during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
TDRs Modified | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Recorded Investment | Number | Recorded Investment | Number | ||||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||||||
Below market interest rate modifications: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 3,460 | 4 | $ | 534 | $ | 1 | ||||||||||||||||||||||||||
Commercial and industrial | 105 | 2 | — | — | |||||||||||||||||||||||||||||
Commercial construction | — | — | 161 | 1 | |||||||||||||||||||||||||||||
Residential real estate | 1,658 | 4 | 47 | 1 | |||||||||||||||||||||||||||||
Home equity | — | — | 90 | 2 | |||||||||||||||||||||||||||||
Consumer | — | — | 13 | 1 | |||||||||||||||||||||||||||||
Total | $ | 5,223 | 10 | $ | 845 | $ | 6 | ||||||||||||||||||||||||||
TDRs Defaulted | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Recorded Investment | Number | Recorded Investment | Number | ||||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||||||
Below market interest rate modifications: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 890 | 3 | $ | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 212 | 2 | |||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | |||||||||||||||||||||||||||||
Residential real estate | — | — | 47 | 1 | |||||||||||||||||||||||||||||
Home equity | — | — | — | — | |||||||||||||||||||||||||||||
Consumer | — | — | 13 | 1 | |||||||||||||||||||||||||||||
Total | $ | 1,102 | 5 | $ | 60 | $ | 2 | ||||||||||||||||||||||||||
The Company does not generally forgive principal or unpaid interest as part of when restructuring loans. Therefore, the recorded investment in TDRs during 2014 and 2013 did not change following the modifications. |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT | |||||||
A summary of premises and equipment is presented in the table below. | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Land | $ | 23,171 | $ | 15,386 | ||||
Buildings and leasehold improvements | 43,433 | 25,409 | ||||||
Furniture, software, and equipment | 22,688 | 8,455 | ||||||
Less: accumulated depreciation | (8,913 | ) | (4,375 | ) | ||||
Total | $ | 80,379 | $ | 44,875 | ||||
Depreciation on premises and equipment, which is recorded in occupancy and equipment expense, totaled $4,683, $2,521 and $1,362 for the years ended December 31, 2014, 2013 and 2012, respectively. |
LOAN_SERVICING
LOAN SERVICING | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Transfers and Servicing [Abstract] | ||||||||
LOAN SERVICING | LOAN SERVICING | |||||||
Mortgage Loan Servicing | ||||||||
Since completion of the Mergers, the Company retains the servicing rights on mortgage loans sold to its investors. The unpaid principal balance of loans serviced for investors was $455,033 as of December 31, 2014. Mortgage servicing rights ("MSRs") are initially recognized at fair value in other assets on the consolidated balance sheets and are subsequently accounted for at the lower of cost or market. MSRs are amortized in proportion to, and over the estimated period, that net servicing income is expected to be received based on estimates of net cash flows on the loans serviced. The amount and timing of estimated future net cash flows are updated based on actual results and updated projections. Mortgage servicing fees, which are recorded in mortgage banking income in the consolidated statements of operations, totaled $538 for the year ended December 31, 2014. | ||||||||
The table below summarizes MSR activity for the periods presented. The Company did not retain mortgage servicing on loans sold prior to the Mergers, thus the table below only includes activity for the last half of 2014. | ||||||||
Year ended December 31, 2014 | ||||||||
Balance at beginning of period | $ | — | ||||||
Acquired Yadkin MSRs at fair value | 4,025 | |||||||
Additions | 688 | |||||||
Payoffs | (126 | ) | ||||||
Amortization | (303 | ) | ||||||
Balance at end of period before valuation allowance | 4,284 | |||||||
Valuation allowance | (157 | ) | ||||||
Balance at end of period after valuation allowance | $ | 4,127 | ||||||
MSRs are separated into pools based on common risk characteristics of the underlying loans, and impairment is evaluated at least quarterly at the pool level. If impairment exists at the pool level, the MSR is written down through a valuation allowance and is charged against mortgage income. Valuation allowances at period end are summarized in the preceding table. | ||||||||
The fair value of MSRs is highly sensitive to changes in assumptions and is determined by estimating the present value of the asset's future cash flows utilizing market-based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and with the use of independent third party appraisals. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of the MSR. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different time. | ||||||||
The characteristics and sensitivity of the fair value of MSRs to changes in key assumptions is included in the accompanying table. | ||||||||
December 31, 2014 | ||||||||
Composition of mortgage loans serviced for others: | ||||||||
Fixed rate loans | 99.86 | % | ||||||
Adjustable rate loans | 0.14 | % | ||||||
Total | 100 | % | ||||||
Weighted average life (years) | 5.77 | |||||||
Prepayment speed | 12.62 | % | ||||||
Discount rate | 9.6 | % | ||||||
Effect on fair value due to change in interest rates: | ||||||||
0.25% | $ | 566 | ||||||
0.50% | 801 | |||||||
-0.25% | (668 | ) | ||||||
-0.50% | (844 | ) | ||||||
The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the changes in assumptions to fair value may not be linear. Also, in this table, the effects of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumptions, while in reality, changes in one factor may result in changing another, which may magnify or contract the effect of the change. | ||||||||
SBA-Guaranteed Loan Servicing | ||||||||
The Company retains the servicing rights on SBA-guaranteed loans sold to investors. The standard sale structure under the SBA Secondary Participation Guaranty Agreement provides for the Company to retain a portion of the cash flow from the interest payment received on the loan, which is commonly known as a servicing spread. The unpaid principal balance of SBA-guaranteed loans serviced for investors was $136,093 as of December 31, 2014. SBA-guaranteed loan servicing assets are initially recognized at fair value in other assets on the consolidated balance sheets and are subsequently accounted for at the lower of cost or market. SBA servicing assets are amortized over the expected life of the related loans serviced as a reduction to the servicing income recognized from the servicing spread. SBA servicing fees, which are recorded in government-guaranteed lending income in the consolidated statements of operations, totaled $1,063 and $522 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
The table below summarizes the activity in the SBA-guaranteed loan servicing asset for the periods presented. | ||||||||
Year ended December 31, | ||||||||
2014 | 2013 | |||||||
Balance at beginning of period | $ | 1,759 | $ | 976 | ||||
Additions | 1,628 | 995 | ||||||
Amortization | (306 | ) | (212 | ) | ||||
Balance at end of period | $ | 3,081 | $ | 1,759 | ||||
The fair value of the servicing asset is compared to the amortized basis when certain triggering events occur. If the amortized basis exceeds the fair value, the asset is considered impaired and is written down to fair value through a valuation allowance on the asset and a charge against SBA income. There was no valuation allowance recorded on the SBA-guaranteed loan servicing asset as of December 31, 2014 or 2013. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||
The table below summarizes the changes in carrying amounts of goodwill and other intangibles (core deposit intangibles) for the periods presented. | ||||||||||||||||
Core Deposit Intangible | ||||||||||||||||
Goodwill | Gross | Accumulated | Net | |||||||||||||
Amortization | ||||||||||||||||
Balance at January 1, 2012 | $ | 26,254 | $ | 3,128 | $ | (304 | ) | $ | 2,824 | |||||||
Amortization expense | — | — | (448 | ) | (448 | ) | ||||||||||
Balance at December 31, 2012 | 26,254 | 3,128 | (752 | ) | 2,376 | |||||||||||
Core deposit intangible resulting from the ECB Merger | — | 4,307 | — | 4,307 | ||||||||||||
Amortization expense | — | — | (800 | ) | (800 | ) | ||||||||||
Balance at December 31, 2013 | 26,254 | 7,435 | (1,552 | ) | 5,883 | |||||||||||
Goodwill and core deposit intangible resulting from the Mergers | 124,829 | 12,951 | — | 12,951 | ||||||||||||
Amortization expense | — | — | (2,157 | ) | (2,157 | ) | ||||||||||
Balance at December 31, 2014 | $ | 151,083 | $ | 20,386 | $ | (3,709 | ) | $ | 16,677 | |||||||
Goodwill represents the excess of the purchase price over the fair value of acquired net assets under the acquisition method of accounting. The Company's mergers and acquisitions that have generated goodwill were were nontaxable events and, as a result, there is no tax basis in the goodwill. Accordingly, none of the goodwill associated with the respective acquisitions is deductible for tax purposes. | ||||||||||||||||
The value of acquired core deposit relationships was determined using the present value of the difference between a market participant's cost of obtaining alternative funds and the cost to maintain the acquired deposit base. The ECB and Yadkin core deposit intangibles are being amortized over a ten-year period using an accelerated method. | ||||||||||||||||
The table below presents estimated amortization expense for the Company's other intangible assets. | ||||||||||||||||
2015 | $ | 3,098 | ||||||||||||||
2016 | 2,775 | |||||||||||||||
2017 | 2,485 | |||||||||||||||
2018 | 2,202 | |||||||||||||||
2019 | 1,915 | |||||||||||||||
Thereafter | 4,202 | |||||||||||||||
$ | 16,677 | |||||||||||||||
Goodwill is reviewed for potential impairment at least annually at the reporting unit level. The goodwill impairment test requires a two-step method to evaluate and calculate impairment. The first step requires estimation of the reporting unit’s fair value. If the fair value exceeds the carrying value, no further testing is required. If the carrying value exceeds the fair value, a second step is performed to determine whether an impairment charge must be recorded and, if so, the amount of such charge. The Company performed its annual goodwill impairment test as of October 31, 2014, and no impairment was indicated by this test. The Company has not identified any triggering events since the impairment test date that would indicate potential impairment. | ||||||||||||||||
Core deposit intangibles are evaluated for impairment if events and circumstances indicate a potential for impairment. Such an evaluation of other intangible assets is based on undiscounted cash flow projections. No impairment charges were recorded for other intangible assets in any of the periods presented. |
BORROWINGS
BORROWINGS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
BORROWINGS | BORROWINGS | ||||||||||||
A summary of short-term borrowings and long-term debt is presented below. | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Short-term borrowings: | |||||||||||||
FHLB advances maturing within one year | $ | 250,500 | $ | 126,500 | |||||||||
Long-term debt: | |||||||||||||
FHLB advances maturing beyond one year | $ | 104,651 | $ | 19,299 | |||||||||
Subordinated term loan due 2018 | 7,060 | 6,961 | |||||||||||
Subordinated notes due 2023 | 38,050 | 38,050 | |||||||||||
Junior subordinated debt to unconsolidated trusts: | |||||||||||||
Maturing October 7, 2033 | 5,629 | 5,560 | |||||||||||
Maturing December 15, 2033 | 6,687 | — | |||||||||||
Maturing December 15, 2037 | 12,115 | — | |||||||||||
Capital lease obligations and other debt | 5,972 | 3,051 | |||||||||||
Total long-term debt | $ | 180,164 | $ | 72,921 | |||||||||
The Company may purchase federal funds through unsecured federal funds lines of credit with various correspondent banks, which totaled $172,000 as of December 31, 2014. These lines are intended for short-term borrowings and are subject to restrictions limiting the frequency and terms of advances. These lines of credit are payable on demand and bear interest based upon the daily federal funds rate. The Company had no outstanding balances on the lines of credit as of December 31, 2014 or 2013. | |||||||||||||
The Company may borrow funds through the Federal Reserve Bank’s discount window. These borrowings are secured by a blanket floating lien on qualifying construction, land acquisition and development loans, commercial and industrial loans, and consumer loans with a total collateral value of $4,877. Depending on the type of loan collateral, the Company may borrow between 60 and 65 percent of the collateral value pledged. The Company had no outstanding borrowings at the discount window as of December 31, 2014 or 2013. | |||||||||||||
On July 2, 2014, the Company entered into a loan agreement with a correspondent bank providing for a revolving loan of up to $10,000 at the holding company. Borrowings under the holding company loan agreement accrue interest at LIBOR plus 4.00 percent. The holding company loan agreement will expire on July 1, 2015. However, the Company may extend the maturity date by twelve months so long as it is not in default under the holding company loan agreement. The obligations of the holding company loan agreement are secured by, among other things, a pledge of all of the capital stock of Yadkin Bank. The Company had no outstanding balances on the holding company loan agreement as of December 31, 2014. | |||||||||||||
FHLB Advances | |||||||||||||
The Company had $159,752 of remaining availability on its credit line with the FHLB for advances as of December 31, 2014. These advances are secured by a blanket floating lien on qualifying commercial real estate loans, multifamily loans, residential mortgage loans, and home equity lines of credit with a total collateral value of $364,874 as of December 31, 2014. | |||||||||||||
Below is a summary of the contractual balances outstanding on FHLB advances. | |||||||||||||
Maturity Date | Contractual Rate | Rate Type | December 31, 2014 | December 31, 2013 | |||||||||
January 7, 2014 | 0.20% | Fixed rate credit | $ | — | $ | 20,000 | |||||||
January 22, 2014 | 0.18 | Fixed rate credit | — | 18,000 | |||||||||
February 5, 2014 | 0.21 | Fixed rate credit | — | 25,000 | |||||||||
March 5, 2014 | 0.25 | Fixed rate credit | — | 25,000 | |||||||||
April 4, 2014 | 0.23 | Fixed rate credit | — | 25,000 | |||||||||
August 4, 2014 | 1.11 | Fixed rate credit | — | 1,500 | |||||||||
August 18, 2014 | 1.49 | Fixed rate credit | — | 3,000 | |||||||||
August 20, 2014 | 1.48 | Fixed rate credit | — | 3,000 | |||||||||
October 28, 2014 | 0.91 | Fixed rate credit | — | 2,000 | |||||||||
December 16, 2014 | 0.87 | Fixed rate credit | — | 4,000 | |||||||||
January 2, 2015 | 0.25 | Fixed rate credit | 20,000 | — | |||||||||
January 5, 2015 | 0.2 | Fixed rate credit | 25,000 | — | |||||||||
January 12, 2015 | 2.99 | Fixed rate credit | 5,000 | — | |||||||||
February 5, 2015 | 0.22 | Fixed rate credit | 25,000 | — | |||||||||
February 26, 2015 | 0.428 | Fixed rate credit | 3,000 | 3,000 | |||||||||
March 2, 2015 | 0.244 | Fixed rate credit | 15,000 | — | |||||||||
March 5, 2015 | 0.24 | Fixed rate credit | 25,000 | — | |||||||||
April 27, 2015 | 2.97 | Fixed rate credit | 5,000 | — | |||||||||
April 30, 2015 | 0.28 | Fixed rate credit | 25,000 | — | |||||||||
June 26, 2015 | 0.26 | Fixed rate credit | 10,000 | — | |||||||||
July 15, 2015 | 0.305 | Fixed rate credit | 20,000 | — | |||||||||
August 5, 2015 | 0.309 | Fixed rate credit | 15,000 | — | |||||||||
August 5, 2015 | 0.301 | Fixed rate credit | 10,000 | — | |||||||||
August 17, 2015 | 1.85 | Fixed rate credit | 4,500 | 4,500 | |||||||||
August 20, 2015 | 1.83 | Fixed rate credit | 3,000 | 3,000 | |||||||||
October 1, 2015 | 0.35 | Fixed rate credit | 10,000 | — | |||||||||
November 16, 2015 | 0.41 | Fixed rate credit | 10,000 | — | |||||||||
December 1, 2015 | 0.428 | Fixed rate credit | 20,000 | — | |||||||||
January 4, 2016 | 0.503 | Fixed rate credit | 15,000 | — | |||||||||
February 5, 2016 | 0.569 | Fixed rate credit | 25,000 | — | |||||||||
February 16, 2016 | 0.48 | Fixed rate credit | 10,000 | — | |||||||||
February 26, 2016 | 0.611 | Fixed rate hybrid | 3,000 | 3,000 | |||||||||
April 1, 2016 | 0.513 | Fixed rate credit | 15,000 | — | |||||||||
July 1, 2016 | 0.7 | Fixed rate credit | 20,000 | — | |||||||||
August 17, 2016 | 2.21 | Fixed rate credit | 2,500 | 2,500 | |||||||||
February 27, 2017 | 0.817 | Fixed rate hybrid | 3,000 | 3,000 | |||||||||
October 16, 2017 | 1.14 | Fixed rate credit | 5,000 | — | |||||||||
October 29, 2018 | 0.25 | Principal reducing credit | 667 | — | |||||||||
October 15, 2019 | 1.83 | Fixed rate credit | 5,000 | — | |||||||||
December 19, 2023 | 2 | Principal reducing credit | 207 | — | |||||||||
Totals | $ | 354,874 | $ | 145,500 | |||||||||
Merger-related fair value adjustments included in FHLB borrowings were $277 and $299, as of December 31, 2014 and 2013, respectively. | |||||||||||||
Subordinated Term Loan Due 2018 | |||||||||||||
In September 2008, the Bank entered into an unsecured subordinated term loan agreement in the amount of $7,500. The agreement requires the Bank to make quarterly payments of interest at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 4.00 percent. The subordinated term loan qualifies as Tier 2 capital for regulatory capital purposes, subject to a phase out of the capital qualification five years prior to maturity. The subordinated term loan was adjusted to fair value in connection with Piedmont's acquisition of Crescent, and as of December 31, 2014 and 2013, the carrying value was $7,060 and $6,961, respectively. | |||||||||||||
The subordinated term loan agreement matures on October 18, 2018 and is currently redeemable, subject to regulatory approval. | |||||||||||||
Subordinated Notes Due 2023 | |||||||||||||
In August 2013, the Company issued an aggregate of $38,050 of subordinated notes in a private placement to accredited investors. The notes bear interest, payable on the 1st of January and July of each year, at a fixed annual interest rate of 7.625 percent. The notes mature in August 2023 and qualify as Tier 2 capital for regulatory purposes, subject to a phase out of the capital qualification five years prior to maturity. | |||||||||||||
Junior Subordinated Debt to Unconsolidated Trusts | |||||||||||||
In August 2003, $8,000 in trust preferred securities ("TRUPs") were issued through the Crescent Financial Capital Trust I (the "Crescent Trust"). The Crescent Trust invested the proceeds from the sale of its TRUPs in junior subordinated deferrable interest debentures issued by Crescent (assumed by VantageSouth in its acquisition of Crescent and subsequently assumed by the Company in its merger with VantageSouth). These TRUPs qualify as Tier 1 capital for regulatory capital purposes, subject to certain limitations. The TRUPs mature on October 7, 2033 and are currently redeemable, subject to regulatory approval. These TRUPs were adjusted to fair value in connection with Piedmont's acquisition of Crescent, and as of December 31, 2014 and 2013, their carrying value was $5,629 and $5,560, respectively. The TRUPs pay cash distributions quarterly at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 3.10 percent. | |||||||||||||
In 2003, $10,000 in TRUPs were issued through the American Community Bank Capital Trust ("ACB Trust"). The ACB Trust invested the proceeds from the sale of its TRUPs in junior subordinated deferrable interest debentures issued by ACB (and assumed by the Company in its acquisition of ACB). These TRUPs qualify as Tier 1 capital for regulatory capital purposes, subject to certain limitations. The TRUPs mature on December 15, 2033 and are currently redeemable, subject to regulatory approval. These TRUPs were adjusted to fair value in connection with the Mergers, and as of December 31, 2014, their carrying value was $6,687. The TRUPs pay cash distributions quarterly at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 2.80 percent. | |||||||||||||
In November 2007, $25,000 in TRUPs were issued through Yadkin Valley Statutory Trust I (the "Yadkin Trust"). The Yadkin Trust invested the proceeds from the sale of its TRUPs in junior subordinated deferrable interest debentures issued by Yadkin. These TRUPs qualify as Tier 1 capital for regulatory capital purposes, subject to certain limitations. The TRUPs mature on December 15, 2037 and are currently redeemable, subject to regulatory approval. These TRUPs were adjusted to fair value in connection with the Mergers, and as of December 31, 2014, their carrying value was $12,115. The TRUPs pay cash distributions quarterly at an annual contract rate, reset quarterly, equal to three-month LIBOR plus 1.32 percent. | |||||||||||||
Yadkin unconditionally guarantees the trust preferred securities that were previously issued by the Crescent Trust, the ACB Trust and the Yadkin Trust. |
DEPOSITS
DEPOSITS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deposits [Abstract] | ||||||||||||
DEPOSITS | DEPOSITS | |||||||||||
The scheduled maturities of time deposits as of December 31, 2014 are presented below. | ||||||||||||
Less Than $250 | $250 and Greater | Total | ||||||||||
2015 | $ | 442,296 | $ | 152,763 | $ | 595,059 | ||||||
2016 | 130,563 | 57,967 | 188,530 | |||||||||
2017 | 64,095 | 38,355 | 102,450 | |||||||||
2018 | 38,747 | 35,913 | 74,660 | |||||||||
2019 | 91,240 | 40,340 | 131,580 | |||||||||
Thereafter | 4 | — | 4 | |||||||||
Total | $ | 766,945 | $ | 325,338 | $ | 1,092,283 | ||||||
LEASES
LEASES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
LEASES | LEASES | |||
Operating Leases | ||||
The Company has entered into forty noncancelable operating leases for the corporate headquarters, operations center, certain branch offices, and equipment. Future minimum lease payments under these leases for the years ending December 31 are presented below. | ||||
2015 | $ | 4,066 | ||
2016 | 3,573 | |||
2017 | 3,103 | |||
2018 | 2,925 | |||
2019 | 2,114 | |||
Thereafter | 5,354 | |||
Total | $ | 21,135 | ||
Certain of the leases contain renewal options for various additional terms after the expiration of the current lease term. Lease payments for the renewal period are not included in the future minimum lease table above. Rent expense for the years ended December 31, 2014, 2013 and 2012 totaled $4,048, $2,818 and $2,490, respectively. | ||||
Two of the properties used for bank branch operations are leased from related parties. Lease payments made to related parties for the year ended December 31, 2014, 2013 and 2012 totaled $760, $755 and $729, respectively. | ||||
Capital Leases | ||||
The Company has entered into two capital leases for banking offices. Leases that meet the criteria for capitalization are recorded as assets and the related obligations are reflected as part of long-term debt. The capital lease asset totaled $5,972 as of December 31, 2014. Future minimum lease payments under the capital leases are presented below. | ||||
2015 | $ | 564 | ||
2016 | 571 | |||
2017 | 580 | |||
2018 | 588 | |||
2019 | 598 | |||
Thereafter | 6,623 | |||
Total projected lease payments for capital leases | 9,524 | |||
Imputed interest | (3,552 | ) | ||
Present value of minimum lease payments | $ | 5,972 | ||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
The table below summarizes significant components of income tax expense (benefit) for the periods presented. | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense: | ||||||||||||
Federal | $ | 305 | $ | — | $ | 69 | ||||||
State | — | — | — | |||||||||
Total current tax expense | 305 | — | 69 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | 7,924 | 432 | (1,163 | ) | ||||||||
State | 1,981 | 2,042 | (253 | ) | ||||||||
Total deferred tax expense (benefit) | 9,905 | 2,474 | (1,416 | ) | ||||||||
Income tax expense (benefit) before change in deferred tax asset valuation allowance | 10,210 | 2,474 | (1,347 | ) | ||||||||
Change in deferred tax asset valuation allowance | (4,797 | ) | (460 | ) | (1,869 | ) | ||||||
Income tax expense (benefit) | $ | 5,413 | $ | 2,014 | $ | (3,216 | ) | |||||
Income tax expense (benefit) is reconciled to the amount computed by applying the statutory federal income tax rate of 35 percent to net income before income taxes as follows. | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax computed at statutory rate of 35% | $ | 9,491 | $ | 2,815 | $ | (815 | ) | |||||
Effect of state income taxes | 1,287 | 1,348 | 11 | |||||||||
Change in income tax rates | (1,899 | ) | 1,544 | — | ||||||||
Gain on acquisition | — | (2,643 | ) | — | ||||||||
Non-taxable interest income | (437 | ) | (79 | ) | (189 | ) | ||||||
Non-taxable bank-owned life insurance | (549 | ) | (348 | ) | (247 | ) | ||||||
Non-deductible merger costs | 1,006 | 309 | 488 | |||||||||
Write-off of acquired net operating losses subject to Section 382 limitation | 652 | — | — | |||||||||
Change in deferred tax asset valuation allowance | (4,797 | ) | (460 | ) | (1,869 | ) | ||||||
Other | 659 | (472 | ) | (595 | ) | |||||||
$ | 5,413 | $ | 2,014 | $ | (3,216 | ) | ||||||
Significant components of deferred taxes are summarized below. | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforward | $ | 40,073 | $ | 32,734 | ||||||||
Recognized built-in loss carryforward | 7,580 | 6,570 | ||||||||||
Acquisition accounting fair value adjustments | 12,229 | 12,330 | ||||||||||
Allowance for loan losses | 2,990 | 2,499 | ||||||||||
Federal tax credits carryforward | 3,140 | 1,282 | ||||||||||
Unrealized losses on securities | 667 | 4,109 | ||||||||||
Unrealized losses on cash flow hedges | 728 | — | ||||||||||
Stock-based compensation | 2,094 | 1,808 | ||||||||||
Capitalized leases | 1,167 | — | ||||||||||
Deferred compensation | 3,024 | 117 | ||||||||||
Other | 2,942 | 497 | ||||||||||
Total deferred tax assets | 76,634 | 61,946 | ||||||||||
Valuation allowance | (1,185 | ) | (5,130 | ) | ||||||||
Net deferred tax assets | 75,449 | 56,816 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Unrealized gains on cash flow hedges | — | 1,490 | ||||||||||
Premises and equipment | 2,568 | 203 | ||||||||||
Prepaid expenses | 478 | 256 | ||||||||||
Total deferred tax liabilities | 3,046 | 1,949 | ||||||||||
Net deferred tax asset | $ | 72,403 | $ | 54,867 | ||||||||
As of December 31, 2014, the Company had net operating losses ("NOLs") available for carryforward of $102,866 that will expire, if unused, from 2023 through 2032. The Company also had recognized built-in losses in excess of annual limitations of $21,658 that will expire, if unused, from 2031 through 2034. The Company’s federal income tax returns are open and subject to examination from the 2011 tax return year and forward. The Company’s state income tax returns are open and subject to examination from the 2011 tax return year and forward. | ||||||||||||
The Company (along with its predecessors) has completed several change in control transactions under Internal Revenue Code Section 382 (“Section 382”) and the Regulations thereunder. Those transactions are summarized below in chronological order. | ||||||||||||
• | Piedmont's acquisition of a controlling interest in Legacy VantageSouth Bank on February 19, 2010 | |||||||||||
• | An ownership shift in the Piedmont capital structure on February 22, 2011 | |||||||||||
• | Piedmont's acquisition of Community Bank of Rowan on April 19, 2011 | |||||||||||
• | Piedmont's acquisition of a controlling interest in Crescent Financial Bancshares, Inc. ("Crescent") on November 18, 2011 | |||||||||||
• | Piedmont's purchase of the non-controlling interests in Legacy VantageSouth Bank on February 1, 2012 along with an ownership shift in the Piedmont capital structure (described above) | |||||||||||
• | Crescent's acquisition of a controlling interest in ECB on April 1, 2013 | |||||||||||
• | Yadkin's merger with Piedmont and VantageSouth on July 4, 2014 (double ownership change) | |||||||||||
Accordingly, the Company is required to evaluate potential limitation or deferral of its ability to carryforward pre-acquisition NOLs and to determine the amount of net unrealized built-in losses (“NUBIL”), which may be subject to similar limitation or deferral. Under the Internal Revenue Code and Regulations, NUBIL recognized within five years of the change in control are subject to potential limitation. Recognized built-in losses ("RBIL") are generally limited to a carryforward period of twenty years, subject to the annual limitation and expire if not used by the end of that period. | ||||||||||||
Based on the Company’s analysis of Section 382 limitations and applicable carryforward periods for limited NOLs and RBILs, there are NOLs totaling $1,917 that will expire unused due to Section 382 limitations. The deferred taxes related to these NOLs were written off in 2014. Other than these unusable NOLs, the Company believes that all of the remaining benefits from pre-acquisition NOLs and RBILs will ultimately be realized, however, that amount is subject to continuing analysis and will not be finalized until the five-year recognition period for each transaction expires. | ||||||||||||
The Company evaluates its deferred tax assets (“DTAs”) each reporting period to determine whether a valuation allowance is necessary. In conducting this evaluation, all available evidence is considered, both positive and negative, based on the more-likely-than-not criteria that such assets will be realized. Some of the positive and negative evidence management considered in its year-end 2014 evaluation is summarized below. | ||||||||||||
Positive evidence regarding the Company's DTAs in order of significance is as follows: | ||||||||||||
• | Earnings trends and forecasts | |||||||||||
The Company continued to improve its earnings performance in 2014, especially following the Mergers. The Company had a three-year cumulative pre-tax income position as of December 31, 2014. Additionally, management monitors the Company’s performance against its business plan and forecast on a regular basis. Based on the business plan and forecast, which consider certain improvements to the Company’s business, management currently expects the Company's pre-tax income to fully absorb the existing DTAs. The Company has also begun to generate significant taxable income, which is important when considering the need to utilize NOLs and other tax loss carryforwards prior to expiration. | ||||||||||||
• | Sufficient carryforward period | |||||||||||
The Company's tax loss carryforward periods were evaluated to determine whether the Company has sufficient time to execute on its business plan, considering applicable annual Section 382 limitations. Based on the Company’s analysis of each change in control, annual Section 382 limitation, dollar amounts of NOLs and RBILs, and forecasted taxable income to offset these loss carryforwards, management believes the Company has sufficient time to execute on its business plan and to utilize all of its NOLs and RBILs (with the exception of certain NOLs referred to above that will expire unused and have been written off). | ||||||||||||
• | Robust capital levels and access to capital | |||||||||||
The Company's and the Bank’s regulatory capital ratios were all in excess of the regulatory definition of "well capitalized" as of December 31, 2014. The Company has also recently demonstrated its ability to raise various forms of capital as needed to fund both strategic acquisitions and organic growth, including common stock, preferred stock, and subordinated debt. The Company also recently redeemed preferred stock previously issued to the U.S. Treasury as part of its TARP Capital Purchase Program and has current plans to redeem the remaining Yadkin preferred stock owned by private investors. | ||||||||||||
• | Sufficient liquidity | |||||||||||
The Company was in compliance with all liquidity policy requirements as of December 31, 2014 and maintained high levels of off balance sheet liquidity. | ||||||||||||
• | Declining problem asset levels | |||||||||||
The Company's nonperforming loan and nonperforming asset ratios decreased in 2014. Further, the Bank's classified asset ratio to tier 1 capital plus allowance for loan losses improved to approximately 22 percent as of December 31, 2014 from 30 percent as of December 31, 2013. The Company has developed a strong underwriting culture, and credit administrators with specific credit expertise have been designated for each line of business, i.e., commercial real estate, commercial and industrial, SBA, Builder Finance, mortgage, and consumer. | ||||||||||||
• | Tax planning strategies | |||||||||||
Reasonable tax planning strategies were considered, including liquidation of bank-owned life insurance to realized built-in gains, sale-leaseback of office buildings in an unrealized gain position, and others. Management has no current plans to execute these tax planning strategies, and in particular, liquidation of bank-owned life insurance would carry a tax penalty. These tax planning strategies would only be considered for possible execution if the ultimate realization of DTAs were in question. | ||||||||||||
Negative evidence regarding the necessity of a DTA valuation allowance is as follows: | ||||||||||||
• | Annual Section 382 limitations on acquired NOLs and RBIL | |||||||||||
The annual Section 382 limitations on the Company's acquisitions may extend the time period necessary to utilize the related NOLs and RBIL. Therefore, the Company needs to execute on its business plan over the next several years to avoid concerns regarding its ability to realize these tax benefits. | ||||||||||||
• | Uncertain regulatory environment | |||||||||||
The risks from an uncertain regulatory environment negatively affect nearly all financial institutions. | ||||||||||||
• | Uncertain economic and rate environment | |||||||||||
The risks from an uncertain economic and rate environment negatively affect nearly all financial institutions. Management believes that the Company’s balance sheet is conservatively positioned from an interest rate risk perspective, and based on its interest rate risk model, management generally expects net interest income to rise and the economic value of equity to increase in a rising interest rate environment. | ||||||||||||
• | Merger risks | |||||||||||
The Company's business plan calls for growth over the coming years through organic activity as well as possible merger and acquisition activity. Future mergers may significantly impact the Company's ability to realize its tax benefits, both positively and negatively. | ||||||||||||
Prior to the Mergers, Piedmont maintained a full valuation allowance on all of its NOLs and other DTAs due to substantial doubt about its ability to realize these tax benefits since its federal tax returns could not be consolidated with VantageSouth at the time. Due to nature of Piedmont’s merger into Yadkin on July 4, 2014, however, Piedmont was consolidated into Yadkin from a federal tax perspective, and the Company is now able to use taxable income generated by Yadkin and its Bank to realize federal NOLs and other DTAs generated by Piedmont prior to the Mergers. Based on this transaction and the Company’s analysis of its ability to realize Piedmont’s DTAs, subject to applicable Section 382 limitations, management determined that it was appropriate to reverse the $4,706 valuation allowance on Piedmont’s DTAs subsequent to the Mergers in 2014. This valuation allowance reversal was recorded as a reduction to income tax expense. | ||||||||||||
As of December 31, 2014, the Company's valuation allowance totaled $1,185, which represented reserves due to uncertainty regarding its ability to generate taxable income of a character required to realize the benefits related to long-term capital gains carryovers and certain state NOLs. Based on the Company's DTA evaluation, which considered the weight of the positive evidence compared to the negative evidence, management concluded that sufficient taxable income will be generated in the future to realize the Company’s remaining net DTA as of December 31, 2014. |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||
REGULATORY MATTERS | REGULATORY MATTERS | ||||||||||||||||||||
Yadkin Bank is required to maintain reserve and clearing balances with the Federal Reserve Bank in the form of vault cash or deposits. There was no aggregate net reserve balance maintained with the Federal Reserve Bank as of December 31, 2014 and 2013, respectively, as vault cash was sufficient to meet the reserve requirement. | |||||||||||||||||||||
Banking regulators have defined capital into the following components: (1) Tier 1 capital, which includes common shareholders' equity and qualifying preferred equity, and (2) Tier 2 capital, which includes a portion of the allowance for loan losses, certain qualifying long-term debt and preferred stock which does not qualify as Tier 1 capital. Minimum capital levels are regulated by risk-based capital adequacy guidelines which require a financial institution to maintain capital as a percent of its assets and certain off-balance sheet items adjusted for predefined credit risk factors (risk-adjusted assets). A financial institution is required to maintain, at a minimum, Tier 1 capital as a percentage of risk-adjusted assets of 4.0 percent and combined Tier 1 and Tier 2 capital as a percentage of risk-adjusted assets of 8.0 percent. In addition to the risk-based guidelines, federal regulations require the Bank to maintain a minimum leverage ratio (Tier 1 capital as a percentage of tangible assets) of 4.0 percent. As of December 31, 2014, and 2013, the Company and the Bank met all applicable capital adequacy requirements. | |||||||||||||||||||||
The holding company and bank capital amounts and ratios are presented in the table below. The 2013 capital amounts and ratios represent those of Piedmont and VantageSouth Bank, which were the accounting predecessors to Yadkin and the Bank. | |||||||||||||||||||||
Actual | Minimum for capital adequacy purposes | Minimum to be well capitalized under prompt corrective action provisions | |||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Yadkin Financial Corporation: | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 425,720 | 12.34 | % | $ | 276,064 | 8 | % | N/A | N/A | |||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 375,095 | 10.87 | % | $ | 138,032 | 4 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to Average Assets) | 375,095 | 9.33 | % | $ | 160,773 | 4 | % | N/A | N/A | ||||||||||||
Yadkin Bank: | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 419,875 | 12.18 | % | $ | 275,674 | 8 | % | $ | 344,592 | 10 | % | |||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 407,300 | 11.82 | % | 137,837 | 4 | % | 206,755 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets) | 407,300 | 10.13 | % | 160,812 | 4 | % | 201,015 | 5 | % | ||||||||||||
31-Dec-13 | |||||||||||||||||||||
Piedmont Community Bank Holdings, Inc.: | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 225,995 | 13.21 | % | $ | 136,834 | 8 | % | N/A | N/A | |||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 173,495 | 10.14 | % | 68,417 | 4 | % | N/A | N/A | |||||||||||||
Tier 1 Capital (to Average Assets) | 173,495 | 8.7 | % | 79,747 | 4 | % | N/A | N/A | |||||||||||||
VantageSouth Bank: | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 216,650 | 12.7 | % | $ | 136,486 | 8 | % | $ | 170,608 | 10 | % | |||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 202,200 | 11.85 | % | 68,243 | 4 | % | 102,365 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets) | 202,200 | 10.16 | % | 79,620 | 4 | % | 99,525 | 5 | % | ||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||
The Company uses derivative financial instruments to manage its interest rate risk. These instruments carry varying degrees of credit, interest rate, and market or liquidity risks. Derivative instruments are recognized as either assets or liabilities on the balance sheet and are measured at fair value. Subsequent changes in the fair value of derivatives are recognized in other comprehensive income for effective hedges, and changes in fair value are recognized in earnings for all other derivatives. | |||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||
In May 2013, the Company entered into a series of forward starting interest rate swaps on $75,000 of forecasted short-term FHLB advances to reduce its exposure to variability in interest payments attributable to changes in three-month LIBOR. Beginning on the respective effective date, these interest rate swaps will exchange the three-month LIBOR component of future variable rate interest on three-month FHLB advances, or other short-term borrowings, with fixed interest rates ranging from 1.65 to 1.72 percent. | |||||||||||||||||||
In August 2014, the Company entered into another series of forward starting interest rate swaps on $100,000 of forecasted short-term FHLB advances to reduce its exposure to variability in interest payments attributable to changes in three-month LIBOR. Beginning on the respective effective date, these interest rate swaps will exchange the three-month LIBOR component of future variable rate interest on three-month FHLB advances, or other short-term borrowings, with fixed interest rates ranging from 2.44 to 2.88 percent. Each three-month FHLB advance, or other short-term borrowing, will be executed to correspond to the effective dates of the respective interest rate swaps and will continue to be rolled for the term of each respective swap. | |||||||||||||||||||
In August 2014, the Company entered into two additional forward starting interest rate swaps on a total of $50,000 of forecasted brokered money market deposits to reduce its exposure to variability in interest payments attributable to changes in one-month LIBOR. Beginning on the respective effective date, these interest rate swaps will exchange one-month LIBOR, plus the applicable spread, with fixed interest rates. Both of these brokered money market accounts are expected to have at least $25,000 each on deposit with the Company from the effective date through the maturity of the interest rate swaps. | |||||||||||||||||||
These interest rate swaps are expected to be highly effective and are accounted for as cash flow hedges with the change in fair value recognized in other comprehensive income ("OCI"). The purpose of these cash flow hedges is to reduce the Company's economic value of equity at risk in a rising interest rate environment. The following table summarizes key terms of each interest rate swap. | |||||||||||||||||||
Interest Rate Swap | Notional Amount | Effective Start Date | Maturity Date | Pay Fixed Rate | Receive Floating Rate | ||||||||||||||
Swap 1 | $ | 25,000 | April 6, 2015 | April 5, 2020 | 1.65 | % | 3-Month LIBOR | ||||||||||||
Swap 2 | 25,000 | May 5, 2015 | May 5, 2020 | 1.683 | 3-Month LIBOR | ||||||||||||||
Swap 3 | 25,000 | June 5, 2015 | June 5, 2020 | 1.72 | 3-Month LIBOR | ||||||||||||||
Swap 4 | 25,000 | August 5, 2015 | August 5, 2020 | 2.44 | 3-Month LIBOR | ||||||||||||||
Swap 5 | 25,000 | February 5, 2016 | February 5, 2021 | 2.703 | 3-Month LIBOR | ||||||||||||||
Swap 6 | 50,000 | August 5, 2016 | August 5, 2021 | 2.882 | 3-Month LIBOR | ||||||||||||||
Swap 7 | 25,000 | October 1, 2014 | August 31, 2017 | 1.197 | 1-Month LIBOR + 0.10% | ||||||||||||||
Swap 8 | 25,000 | October 16, 2014 | August 16, 2018 | 1.596 | 1-Month LIBOR + 0.13% | ||||||||||||||
$ | 225,000 | ||||||||||||||||||
Interest Rate Caps | |||||||||||||||||||
In May 2012, the Company purchased separate interest rate cap contracts on a $7,500 subordinated term loan and on $8,000 in junior subordinated debt previously issued to the Crescent Trust, an unconsolidated trust formed to issue trust preferred securities ("TRUPs"). In August 2014, the Company also purchased separate interest rate cap contracts on $25,000 in junior subordinated debt previously issued to the Yadkin Trust and on $10,000 in junior subordinated debt previously issued to the ACB Trust. The underlying index for each debt instrument is three-month LIBOR. In the event that the underlying index rate exceeds the strike rate on the respective cap, the counterparty would pay the Company the difference between the underlying index and the strike rate. | |||||||||||||||||||
These interest rate cap contracts are classified as effective cash flow hedges. Therefore, the changes in fair value of the caps are recognized in OCI. The purpose of these cash flow hedges is to reduce the Company's economic value of equity at risk in a rising interest rate environment. The following table summarizes key terms of each interest rate cap. | |||||||||||||||||||
Interest Rate Cap | Notional Amount | Effective Start Date | Maturity Date | Strike Rate | Underlying Index of Cap | Variable Rate on Underlying Debt | |||||||||||||
Cap 1 | $ | 7,500 | July 1, 2012 | July 1, 2017 | 0.47 | % | 3-Month LIBOR | 3-Month LIBOR + 4.00% | |||||||||||
Cap 2 | 8,000 | July 7, 2012 | July 7, 2017 | 0.47 | 3-Month LIBOR | 3-Month LIBOR + 3.10% | |||||||||||||
Cap 3 | 25,000 | September 15, 2014 | September 15, 2019 | 1.82 | 3-Month LIBOR | 3-Month LIBOR + 1.32% | |||||||||||||
Cap 4 | 10,000 | September 30, 2014 | September 30, 2019 | 1.85 | 3-Month LIBOR | 3-Month LIBOR + 2.80% | |||||||||||||
$ | 50,500 | ||||||||||||||||||
Mortgage Loan Commitments | |||||||||||||||||||
The Company enters into interest rate lock commitments with customers and commitments to sell mortgages to investors. The forward sale commitments are entered into with investors to manage the interest rate risk associated with the customer interest rate lock commitments, and both are considered derivative financial instruments. These derivative instruments are carried at fair value and do not qualify for hedge accounting. The fair value of the interest rate lock commitments is based on the value that can be generated when the underlying loan is sold on the secondary market and is included on the consolidated balance sheets in other assets and on the consolidated statements of operations in mortgage banking income. The fair value of the forward sale commitments is based on changes in the value of the commitment, principally because of changes in interest rates, and is included on the consolidated balance sheets in other assets or other liabilities and on the consolidated statements of operations in mortgage banking income. | |||||||||||||||||||
The following table summarizes the balance sheet location and fair value amounts of derivative instruments grouped by the underlying hedged instrument. | |||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||
Balance Sheet | Notional | Fair Value | Notional Amount | Fair Value | |||||||||||||||
Location | Amount | ||||||||||||||||||
FHLB advances: | |||||||||||||||||||
Interest rate swaps | Other assets | $ | 75,000 | $ | 795 | $ | 75,000 | $ | 3,962 | ||||||||||
Interest rate swaps | Other liabilities | 100,000 | 2,249 | — | — | ||||||||||||||
Brokered money market deposits: | |||||||||||||||||||
Interest rate swaps | Other liabilities | 50,000 | 200 | — | — | ||||||||||||||
Subordinated term loan: | |||||||||||||||||||
Interest rate cap | Other assets | 7,500 | 128 | 7,500 | 193 | ||||||||||||||
TRUPs: | |||||||||||||||||||
Interest rate caps | Other assets | 43,000 | 1,104 | 8,000 | 208 | ||||||||||||||
Mortgage loan commitments: | |||||||||||||||||||
Interest rate lock commitments | Other assets | 23,274 | 342 | 17,654 | 354 | ||||||||||||||
Forward sale commitments | Other liabilities | 34,727 | 49 | — | — | ||||||||||||||
Activity in accumulated other comprehensive income (loss) ("AOCI") related to cash flow hedges is presented in Note R. If a cash flow hedge ceases to be highly effective or is terminated, then the hedge is dedesignated, and effective changes in value that are recorded in AOCI before dedesignation are amortized to yield over the period the forecasted hedged transactions impact earnings. If the transaction is no longer probable of occurring during the forecast period or within a short period thereafter, hedge accounting is ceased and any gain or loss in AOCI is reported in earnings immediately. | |||||||||||||||||||
The Company monitors the credit risk of the counterparties to the interest rate swaps and caps. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the maximum exposure the Company has in particular classes of financial instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | ||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit is based on a credit evaluation of the borrower. Collateral obtained varies but may include real estate, equipment, stocks, bonds, and certificates of deposit. | ||||||||
The following table is a summary of the contractual amount of the Company’s exposure to off-balance sheet commitments. | ||||||||
December 31, | December 31, 2013 | |||||||
2014 | ||||||||
Lending commitments: | ||||||||
Commitments to extend credit | $ | 658,925 | $ | 293,371 | ||||
Financial standby letters of credit | 12,421 | 8,571 | ||||||
Other commitments: | ||||||||
Standby letters of credit issued by the FHLB on the Bank's behalf | $ | 10,000 | $ | 10,000 | ||||
Capital commitments to private investment funds | 2,280 | 1,744 | ||||||
The reserve for unfunded commitments was $522 and $281 as of December 31, 2014 and 2013, respectively, which was recorded in other liabilities on the consolidated balance sheets. | ||||||||
The Company and Yadkin Bank have been named defendants in legal actions arising from normal business activities in which damages in various amounts are claimed. Although the amount of any liability with respect to such matters cannot be determined, in the opinion of management, any liability arising from these matters will not have a material effect on Yadkin's consolidated financial statements. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | ||||||||||||||||||||
Fair value is defined as the exchange price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three level valuation input hierarchy. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value. | |||||||||||||||||||||
Investment Securities. Securities available for sale ("AFS") are recorded at fair value on a recurring basis. Fair value measurements are based upon quoted market exchange prices, if available. If quoted prices are not available, third-party pricing sources are generally utilized to determine fair value. These fair values are derived from market-based pricing matrices that were developed using observable inputs that include benchmark yields, benchmark securities, reported trades, offers, bids, issuer spreads, and broker quotes. Level 1 securities include securities traded on an active exchange, such as the New York Stock Exchange, or SBA-guaranteed securities where active market pricing is readily available. Level 2 securities include GSE securities and mortgage-backed securities issued by GSEs, private label mortgage-backed securities, municipal bonds and corporate debt securities. Level 3 securities include certain corporate debt securities with limited trading activity. The following table provides the components of the change in fair value of Level 3 available for sale securities for the periods presented. | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Level 3 AFS securities at beginning of period | $ | 7,583 | $ | — | $ | — | |||||||||||||||
Purchases | 4,600 | 7,505 | — | ||||||||||||||||||
Sales, calls or maturities | (1,000 | ) | — | — | |||||||||||||||||
Changes in unrealized gains and losses | 107 | 78 | — | ||||||||||||||||||
Level 3 AFS securities at end of period | $ | 11,290 | $ | 7,583 | $ | — | |||||||||||||||
SBA-Guaranteed Loans. The Company has elected to account for certain SBA-guaranteed loans at fair value on a recurring basis. Generally, the Company has reached an agreement with an investor to sell the guaranteed portion of these loans, and these amounts are classified in loans held for sale on the consolidated balance sheets until the sale is complete. The unguaranteed retained portion of the loans remains in loans held for investment and continues to be adjusted to fair value over the remaining life of the respective loans. Fair value estimates for these loans are based on observable market data and pricing and are therefore classified as recurring Level 2. | |||||||||||||||||||||
Derivatives. Derivative instruments include interest rate swaps and caps and are valued on a recurring basis using quoted market prices, dealer quotes, or third party pricing models that are primarily sensitive to market observable data. Currently outstanding derivatives, except for mortgage interest rate lock commitments described below, are classified as Level 2 within the fair value hierarchy. | |||||||||||||||||||||
Mortgage Loan Commitments. The fair value of interest rate lock commitments, which are included in derivatives assets and liabilities in the fair value measurement tables below, is based on servicing rate premium, origination income net of origination costs, fall out rates and changes in loan pricing between the commitment date and period end. Interest rate lock commitments are measured at fair value on a recurring basis and are classified as Level 3. The following table provides the components of the change in fair value of interest rate lock commitments for the periods presented. | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Interest rate lock commitments at beginning of period | $ | 354 | $ | 795 | $ | 212 | |||||||||||||||
Fair value of acquired Yadkin interest rate lock commitments | 231 | — | — | ||||||||||||||||||
Issuances | 2,366 | 2,909 | 2,600 | ||||||||||||||||||
Settlements | (2,609 | ) | (3,350 | ) | (2,017 | ) | |||||||||||||||
Interest rate lock commitments at end of period | $ | 342 | $ | 354 | $ | 795 | |||||||||||||||
The fair value of forward sale commitments, also included in derivative assets and liabilities in the fair value measurement tables below, is based on changes in loan pricing between the commitment date and period end. Forward sale commitments are measured at fair value on a recurring basis and are classified as Level 2. The difference between the interest rate lock commitment issuances and settlements in the preceding table and the change in fair value of forward sale commitments in the period represents the gain on mortgage loan commitments and is included in mortgage banking income on the consolidated statements of operations. | |||||||||||||||||||||
Loans. Loans are not generally recorded at fair value on a recurring basis. However, certain loans are determined to be impaired, and those loans are charged down to estimated fair value. The fair value of impaired loans that are collateral dependent is based on collateral value. For impaired loans that are not collateral dependent, estimated value is based on either an observable market price, if available, or the present value of expected future cash flows. Those impaired loans not requiring a charge-off represent loans for which the estimated fair value exceeds the recorded investments in such loans. When the fair value of an impaired loan is based on an observable market price or a current appraised value with no adjustments, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available, or the Company determines the fair value of the collateral is further impaired below the appraised value, and there is no observable market price, the impaired loan is classified as nonrecurring Level 3. | |||||||||||||||||||||
Foreclosed Assets. Foreclosed assets are adjusted to fair value upon transfer of loans to foreclosed assets. Subsequently, foreclosed assets are carried at lower of cost or net realizable value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Given the lack of observable market prices for identical properties and market discounts applied to appraised values, the Company classifies foreclosed assets as nonrecurring Level 3. | |||||||||||||||||||||
The following tables summarize fair value information for assets and liabilities measured on a recurring and nonrecurring basis. | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Measured at fair value on a recurring basis: | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
GSE obligations | $ | 14,944 | $ | — | $ | 14,944 | $ | — | |||||||||||||
SBA-guaranteed securities | 60,120 | 60,120 | — | — | |||||||||||||||||
Mortgage-backed securities issued by GSE | 425,283 | — | 425,283 | — | |||||||||||||||||
Corporate bonds | 119,912 | 2,545 | 106,077 | 11,290 | |||||||||||||||||
Non-agency RMBS | 4,963 | — | 4,963 | — | |||||||||||||||||
Non-agency CMBS | 3,578 | — | 3,578 | — | |||||||||||||||||
Municipal bonds | 40,258 | — | 40,258 | — | |||||||||||||||||
Other debt securities | 498 | 498 | — | — | |||||||||||||||||
Equity securities | 2,865 | 2,865 | — | — | |||||||||||||||||
SBA-guaranteed loans held for sale | 8,365 | — | 8,365 | — | |||||||||||||||||
SBA loans held for investment | 8,906 | — | 8,906 | — | |||||||||||||||||
Derivative assets | 2,368 | — | 2,027 | 342 | |||||||||||||||||
Derivative liabilities | 2,497 | — | 2,497 | — | |||||||||||||||||
Measured at fair value on a nonrecurring basis: | |||||||||||||||||||||
Impaired loans | $ | 9,595 | $ | — | $ | — | $ | 9,595 | |||||||||||||
Foreclosed assets | 12,891 | — | — | 12,891 | |||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Measured at fair value on a recurring basis: | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
GSE obligations | $ | 14,673 | $ | — | $ | 14,673 | $ | — | |||||||||||||
SBA-guaranteed securities | 65,880 | 65,880 | — | — | |||||||||||||||||
Mortgage-backed securities issued by GSE | 205,260 | — | 205,260 | — | |||||||||||||||||
Corporate bonds | 110,740 | — | 103,157 | 7,583 | |||||||||||||||||
Non-agency CMBS | 5,938 | — | 5,938 | — | |||||||||||||||||
Municipal bonds | 601 | — | 601 | — | |||||||||||||||||
Other debt securities | 253 | 253 | — | — | |||||||||||||||||
Equity securities | 1,043 | 1,043 | — | — | |||||||||||||||||
Derivative assets | 4,717 | — | 4,363 | 354 | |||||||||||||||||
Measured at fair value on a non-recurring basis: | |||||||||||||||||||||
Mortgage servicing rights | $ | 4,127 | $ | — | $ | — | $ | 4,127 | |||||||||||||
Impaired loans | 8,264 | — | — | 8,264 | |||||||||||||||||
Foreclosed assets | 10,823 | — | — | 10,823 | |||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||
The table below outlines the valuation techniques, unobservable inputs, and the range of quantitative inputs used in the valuations. | |||||||||||||||||||||
Valuation Technique | Unobservable Input | Range | Fair Value as of | Fair Value as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Recurring measurements: | |||||||||||||||||||||
Investment securities | Pricing model | Illiquidity or credit factor in discount rates | 1-2% | $ | 11,290 | $ | 7,583 | ||||||||||||||
Interest rate lock commitments | Pricing model | Pull through rates | 80-95% | $ | 342 | $ | 354 | ||||||||||||||
Nonrecurring measurements: | |||||||||||||||||||||
Impaired loans | Discounted appraisals | Collateral discounts | 15-50% | $ | 9,595 | ||||||||||||||||
Discounted expected cash flows | Expected loss rates | 0-75% | $ | 8,264 | |||||||||||||||||
Discount rates | 2-8% | ||||||||||||||||||||
Foreclosed assets | Discounted appraisals | Collateral discounts | 15-50% | $ | 12,891 | $ | 10,823 | ||||||||||||||
The significant unobservable input used in the fair value measurement of the Company’s interest rate lock commitments is the closing ratio (or pull through rate), which represents the percentage of loans currently in a lock position which management estimates will ultimately close. Generally, the fair value of an interest rate lock commitment is positive (negative) if the prevailing interest rate is lower (higher) than the interest rate lock commitment rate. Therefore, an increase in the pull through rates (i.e., higher percentage of loans estimated to close) will result in the fair value of the interest rate lock commitments increasing in a gain position, or decreasing in a loss position. The pull through ratio is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. The pull through rate is computed based on historical internal data and the ratio is periodically reviewed by the Company’s mortgage banking department. | |||||||||||||||||||||
Due to the nature of the Company’s business, a significant portion of its assets and liabilities consist of financial instruments. Accordingly, the estimated fair values of these financial instruments are disclosed. Quoted market prices, if available, are utilized as an estimate of the fair value of financial instruments. The fair value of such instruments has been derived based on assumptions with respect to future economic conditions, the amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimates. Accordingly, the net amounts ultimately collected could be materially different from the estimates presented below. In addition, these estimates are only indicative of the values of individual financial instruments and should not be considered an indication of the fair value of the Company taken as a whole. | |||||||||||||||||||||
Cash and Cash Equivalents. The carrying amounts for cash and cash equivalents are a reasonable estimate of fair value. | |||||||||||||||||||||
Investment Securities Available for Sale. A description of fair value estimates for securities available for sale is included in the recurring fair value measurements section above. | |||||||||||||||||||||
Investment Securities Held to Maturity. The fair value of the municipal bonds classified as held to maturity are derived from market-based pricing matrices that were developed using observable inputs that include benchmark yields, benchmark securities, reported trades, offers, bids, issuer spreads, and broker quotes. These securities are classified as Level 2 in the fair value hierarchy since the inputs used in the valuation are readily available market inputs. | |||||||||||||||||||||
Loans Held For Sale. The fair value of mortgage loans held for sale is based on commitments on hand from investors within the secondary market. A description of fair value estimates for SBA-guaranteed loans held for sale is included in the recurring fair value measurements section above. | |||||||||||||||||||||
Loans. Expected cash flows are forecasted over the remaining life of each loan and are discounted to present value at current market interest rates for similar loans considering loan collateral type and credit quality. | |||||||||||||||||||||
Federal Home Loan Bank Stock. Given the option to redeem this stock at par through the FHLB, the carrying value of FHLB stock approximates fair value. | |||||||||||||||||||||
Bank-Owned Life Insurance. Bank-owned life insurance investments are recorded at their cash surrender value, or the amount that can be realized upon surrender. Therefore, carrying value approximates fair value. | |||||||||||||||||||||
Purchased Accounts Receivable. Purchased accounts receivable, which are classified in other assets on the consolidated balance sheet, are initially recorded at fair value, which is the same as the discounted purchase price, and generally have maturities between 30 and 60 days. Due to the short duration of these assets, the carrying amounts are a reasonable estimate of fair value. | |||||||||||||||||||||
Deposits. The fair value of demand deposits, savings, money market and NOW accounts represents the amount payable on demand. The fair value of time deposits is estimated by calculating the present value of cash flows on the time deposit portfolio discounted using interest rates currently offered for instruments of similar remaining maturities. | |||||||||||||||||||||
Short-term Borrowings and Long-term Debt. The fair value of short-term borrowings and long-term debt are based upon the discounted value when using current rates at which borrowings of similar maturity could be obtained. | |||||||||||||||||||||
Accrued Interest Receivable and Accrued Interest Payable. The carrying amounts of accrued interest receivable and payable approximate fair value due to the short maturities of these instruments. | |||||||||||||||||||||
Derivative Instruments. A description of fair value estimates for derivative instruments is included in the recurring fair value measurements section above. | |||||||||||||||||||||
The following tables summarize the carrying amounts and estimated fair values of the Company's financial instruments. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 132,365 | $ | 132,365 | $ | 132,365 | $ | — | $ | — | |||||||||||
Investment securities available for sale | 672,421 | 672,421 | 66,028 | 595,103 | 11,290 | ||||||||||||||||
Investment securities held to maturity | 39,620 | 40,404 | — | 40,404 | — | ||||||||||||||||
Loans held for sale | 20,205 | 20,205 | — | 20,205 | — | ||||||||||||||||
Loans, net | 2,890,449 | 2,919,573 | — | 1,241 | 2,918,332 | ||||||||||||||||
Federal Home Loan Bank stock | 19,499 | 19,499 | — | 19,499 | — | ||||||||||||||||
Bank-owned life insurance | 76,990 | 76,990 | — | 76,990 | — | ||||||||||||||||
Derivative assets | 2,368 | 2,368 | — | 2,027 | 342 | ||||||||||||||||
Purchased accounts receivable | 44,821 | 44,821 | — | 44,821 | — | ||||||||||||||||
Accrued interest receivable | 12,071 | 12,071 | — | 12,071 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 3,247,364 | 3,245,431 | — | 3,245,431 | — | ||||||||||||||||
Short-term borrowings | 250,500 | 250,500 | — | — | 250,500 | ||||||||||||||||
Long-term debt | 180,164 | 183,326 | — | — | 183,326 | ||||||||||||||||
Derivative liabilities | 2,497 | 2,497 | — | 2,497 | — | ||||||||||||||||
Accrued interest payable | 2,688 | 2,688 | — | 2,688 | — | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Carrying | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 100,780 | $ | 100,780 | $ | 100,780 | $ | — | $ | — | |||||||||||
Investment securities available for sale | 404,388 | 404,388 | 67,176 | 329,629 | 7,583 | ||||||||||||||||
Investment securities held to maturity | 500 | 500 | — | — | 500 | ||||||||||||||||
Loans held for sale | 8,663 | 8,663 | — | 8,663 | — | ||||||||||||||||
Loans, net | 1,385,790 | 1,380,437 | — | — | 1,380,437 | ||||||||||||||||
Federal Home Loan Bank stock | 8,929 | 8,929 | — | 8,929 | — | ||||||||||||||||
Bank-owned life insurance | 33,148 | 33,148 | — | 33,148 | — | ||||||||||||||||
Derivative assets | 4,717 | 4,717 | — | 4,363 | 354 | ||||||||||||||||
Purchased accounts receivable | 18,725 | 18,725 | — | 18,725 | — | ||||||||||||||||
Accrued interest receivable | 5,356 | 5,356 | — | 5,356 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 1,672,231 | 1,674,175 | — | 1,674,175 | — | ||||||||||||||||
Short-term borrowings | 126,500 | 126,726 | — | — | 126,726 | ||||||||||||||||
Long-term debt | 72,921 | 72,397 | — | — | 72,397 | ||||||||||||||||
Accrued interest payable | 1,817 | 1,817 | — | 1,817 | — | ||||||||||||||||
EMPLOYEE_AND_DIRECTOR_BENEFIT_
EMPLOYEE AND DIRECTOR BENEFIT PLANS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
EMPLOYEE AND DIRECTOR BENEFIT PLANS | EMPLOYEE AND DIRECTOR BENEFIT PLANS | |||||||||||||
The Yadkin Financial Corporation 2013 Equity Incentive Plan (the “2013 Incentive Plan”) authorized the issuance of incentive stock awards to certain employees, officers, and directors of the Company. As of December 31, 2014, no awards had been granted under the 2013 Incentive Plan. The Yadkin Valley Financial Corporation 2008 Omnibus Stock Ownership and Long Term Incentive Plan (the “2008 Stock Plan”) also authorized the issuance of awards to certain employees, officers, and directors of the Company. The awards may be issued in the form of incentive stock option grants, nonstatutory stock option grants, restricted stock awards, stock appreciation rights, and/or long term incentive compensation units. Option exercise prices are established at market value on the grant date. Vesting provisions for granted stock options and restricted stock are at the discretion of the Nominating, Compensation, and Corporate Governance Committee of the Board of Directors. Upon termination, unexercised options held by employees are forfeited and made available for future grants. The Company funds the option shares and restricted stock from authorized but unissued shares. | ||||||||||||||
Stock Options | ||||||||||||||
In addition to option grants pursuant to the 2008 Stock Plan, the Company has assumed outstanding stock options that had been granted under the stock option plans of acquired companies. Of the total options outstanding as of December 31, 2014, 73,413 acquired options remained exercisable at a weighted average exercise price of $32.25 per share, and 5,054 options granted under the 2008 Stock Plan were exercisable at a weighted average exercise price of $13.77 per share. As of December 31, 2014, 9,621 shares or options remained available for future issuance under the 2008 Stock Plan, and 300,000 options remained available under the 2013 Incentive Plan. There were no options granted during the year ended December 31, 2014. | ||||||||||||||
A summary of stock option activity for the year ended December 31, 2014 is presented below. | ||||||||||||||
Outstanding Options | Exercisable Options | |||||||||||||
Number | Weighted | Number | Weighted | |||||||||||
Average | Average | |||||||||||||
Option | Option | |||||||||||||
Price | Price | |||||||||||||
Options outstanding at January 1, 2014 | 46,744 | $ | 17.79 | 46,744 | $ | 17.79 | ||||||||
Granted | — | — | — | — | ||||||||||
Yadkin options assumed in Mergers | 50,693 | 31.03 | 50,693 | 31.03 | ||||||||||
Exercised | 11,353 | 12.56 | 11,353 | 12.56 | ||||||||||
Expired | 3,360 | 15.94 | 3,360 | 15.94 | ||||||||||
Forfeited | 4,257 | 32.01 | 4,257 | 32.01 | ||||||||||
Options outstanding at December 31, 2014 | 78,467 | $ | 31.06 | 78,467 | $ | 31.06 | ||||||||
The weighted average remaining life of options outstanding and options exercisable was 1.72 years years and 1.55 years years as of December 31, 2014 and 2013, respectively. | ||||||||||||||
The table below provides the range of exercise prices for options outstanding and exercisable as of December 31, 2014. | ||||||||||||||
Range of Exercise Prices | Stock Options | Stock Options | ||||||||||||
Outstanding | Exercisable | |||||||||||||
$9.12 - $10.00 | 1,722 | 1,722 | ||||||||||||
$10.01 - $20.00 | 28,208 | 28,208 | ||||||||||||
$20.01 - $30.00 | 4,085 | 4,085 | ||||||||||||
$30.01 - $40.00 | 9,717 | 9,717 | ||||||||||||
$40.01 - $50.00 | 33,902 | 33,902 | ||||||||||||
$50.01 - $57.21 | 833 | 833 | ||||||||||||
78,467 | 78,467 | |||||||||||||
The fair market value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. The risk-free interest rate is based upon a U.S. Treasury instrument with a life that is similar to the expected life of the option grant. Expected volatility is based upon the historical volatility of the Company’s stock price based upon the previous three years trading history. The expected term of the options is based upon the average life of previously issued stock options. | ||||||||||||||
Compensation cost related to stock options was $0 for the years ended December 31, 2014 and 2013 and was $2 for the year ended December 31, 2012. The aggregate intrinsic value of total options outstanding and exercisable options as of December 31, 2014 was $125. As of December 31, 2014, there was no unrecognized compensation cost related to stock options as all options had fully vested. | ||||||||||||||
Restricted Stock | ||||||||||||||
A summary of non-vested restricted stock award activity is included below for the periods presented. | ||||||||||||||
Shares | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Non-vested at January 1, 2014 | 1,250 | $ | 12.51 | |||||||||||
Granted | — | — | ||||||||||||
Yadkin restricted stock assumed in Mergers | 173,266 | 6.95 | ||||||||||||
Vested | 172,900 | 6.95 | ||||||||||||
Forfeited | 680 | 12.51 | ||||||||||||
Non-vested at December 31, 2014 | 936 | $ | 10.68 | |||||||||||
Compensation cost related to non-vested restricted stock was $336, $8 and $29 for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, there was no unrecognized compensation cost related to non-vested restricted stock. | ||||||||||||||
Defined Contribution Plans | ||||||||||||||
The Company sponsors profit-sharing and 401(k) plans for substantially all employees. Participants may make voluntary contributions resulting in salary deferrals in accordance with Section 401(k) of the Internal Revenue Code. The plan provides for employer contribution of up to 4 percent of pre-tax salary contributed by each participant. Employer contributions to the 401(k) plans totaled $1,252, $1,140 and $658 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
Piedmont Stock Warrant Plan and Phantom Equity Plan | ||||||||||||||
Certain employees, officers, and directors of Piedmont were granted warrants for Piedmont common stock from 2010 to 2013 (the "Piedmont Stock Warrant Plan"). All Piedmont stock warrants had an initial contractual term of ten years. Stock warrants issued in 2010 were granted to two of Piedmont's directors with 25 percent vesting on the grant date and 25 percent vesting on each of the first, second and third anniversaries of the grant date. Stock warrants issued from 2011 to 2013 were granted with 25 percent vesting on each of the first, second, third and fourth anniversaries of the grant date. The initial exercise price of each grant equaled the price of the respective equity offering and was to have increased at an 8 percent annual rate until a required investment return was achieved, at which time the exercise price was to adjust to the initial exercise price. The required investment return was to have been achieved when, and if, Piedmont's Board of Directors determined that the initial investors had realized a return of their capital investment in Piedmont plus a cumulative, non-compounded annual return of at least 8 percent. | ||||||||||||||
The grant date fair value of each Piedmont stock warrant award was determined with a Monte Carlo-based option pricing model. The model assumed that the stock warrants would be exercised at the mid-point of the time to achieve the performance condition and contractual term of ten years, weighted by the probability of a change in control event. There were 146,666 warrants for shares of Piedmont's common stock outstanding as of December 31, 2013. Compensation cost recorded in non-interest expense related to the Piedmont Stock Warrant Plan was $1,145 and $2,235 for the years ended December 31, 2013 and 2012, respectively. Unrecognized compensation cost on these stock warrants totaled $850 as of December 31, 2013. The Piedmont Stock Warrant Plan was replaced by the Piedmont Phantom Equity Plan on January 24, 2014. Due to the nature of this replacement, it was accounted for as a plan modification and not a plan cancellation. | ||||||||||||||
The Piedmont Phantom Equity Plan was established on January 24, 2014. Under the plan, participants in the Piedmont Stock Warrant Plan were granted units (each, a “Unit”). The Units are subject to vesting on dates consistent with the vesting dates under the Piedmont stock warrant plan. Each participant is entitled to receive the aggregate “Unit Value” of the vested portion of his or her account, to be paid to the participant on the earlier of (i) December 31, 2018, or (ii) a “change of control” (as defined in the Piedmont Phantom Equity Plan). In general, Unit Value is determined by subtracting the per-Unit base price for a Unit from the “full” value of such Unit. The “full” value of each Unit is equal to the value of one share of Piedmont stock prior to the Mergers, adjusted to equal the per share consideration that a Piedmont stockholder received for one share of Piedmont common stock (that is, 6.28597 shares of Yadkin voting common stock plus any per share cash merger consideration). Each Unit has a per-Unit base price specific to that Unit (the initial base price), which generally will be increased by 8 percent per year, unless and until certain initial investors in Piedmont realize a return of their capital investment plus a cumulative, non-compounded annual return of 8 percent (the "Investment Hurdle"). Once the Investment Hurdle has been met, the per-Unit base price returns to its initial base price. Any amounts paid to participants will be paid in common stock of Yadkin. | ||||||||||||||
On July 4, 2014, concurrent with the Mergers, Yadkin assumed the obligations represented by the Piedmont Phantom Equity Plan, and Yadkin issued 856,447 shares of Yadkin voting common stock to an irrevocable rabbi trust to assist it in meeting its obligations under the Piedmont Phantom Equity Plan and the Merger Agreement. These shares (i) are issued and outstanding shares of Yadkin voting common stock with all rights of a holder of such shares, including the right to vote and receive dividends, and (ii) are to be used by Yadkin first to make distributions and satisfy all obligations under the Piedmont Phantom Equity Plan and then to distribute any remaining shares of Yadkin voting common stock held by the rabbi trust to the holders of Piedmont common stock that participated in the Mergers. | ||||||||||||||
If as of December 31, 2018 there has not been a “change of control,” then the aggregate Unit Value will be distributed to the plan participants on December 31, 2018. Shares of Yadkin voting common stock that are held in the rabbi trust will be used to satisfy these distribution obligations under the Piedmont Phantom Equity Plan. The principal of the rabbi trust and any earnings thereon will be held separate and apart from other funds of Yadkin and will be used exclusively for the uses and purposes of Piedmont Phantom Equity Plan participants, Piedmont stockholders participating in the Mergers, and general creditors of Yadkin in certain circumstances. | ||||||||||||||
Compensation cost recorded in non-interest expense related to the Piedmont Stock Warrant Plan and Piedmont Phantom Equity Plan was $605 for the year ended December 31, 2014, and unrecognized compensation cost totaled $245 as of December 31, 2014. Employer shares held by a rabbi trust should be treated as treasury stock for earnings per share purposes and excluded from the denominator in the basic and diluted per share calculations. However, the obligation under a deferred compensation arrangement should be reflected in the denominator of the earnings per share calculation. Therefore, since the 856,447 shares of Yadkin common stock held in the rabbi trust pursuant to the Piedmont Phantom Equity Plan are payable to either participants in the plan or Piedmont stockholders participating in the Mergers, there is no net impact to the Company's earnings per share from these shares. |
CHANGES_IN_ACCUMULATED_OTHER_C
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||
The table below summarizes the activity in AOCI for the periods presented. All amounts are net of tax. | ||||||||||||
Unrealized Net Gains (Losses) on AFS Securities | Unrealized Net Gains (Losses) on Cash Flow Hedges | Total | ||||||||||
Balance at January 1, 2014 | $ | (6,554 | ) | $ | 2,381 | $ | (4,173 | ) | ||||
Other comprehensive income (loss) before reclassifications | 5,445 | (3,440 | ) | 2,005 | ||||||||
Amounts reclassified for securities gains | (76 | ) | — | (76 | ) | |||||||
Net change in AOCI | 5,369 | (3,440 | ) | 1,929 | ||||||||
Balance at December 31, 2014 | $ | (1,185 | ) | $ | (1,059 | ) | $ | (2,244 | ) | |||
Balance at January 1, 2013 | $ | 2,085 | $ | (267 | ) | $ | 1,818 | |||||
Other comprehensive income (loss) before reclassifications | (7,892 | ) | 2,648 | (5,244 | ) | |||||||
Amounts reclassified for securities gains | (747 | ) | — | (747 | ) | |||||||
Net change in AOCI | (8,639 | ) | 2,648 | (5,991 | ) | |||||||
Balance before non-controlling interests at December 31, 2013 | (6,554 | ) | 2,381 | (4,173 | ) | |||||||
Non-controlling interests | (2,197 | ) | 749 | (1,448 | ) | |||||||
Balance after non-controlling interests at December 31, 2013 | $ | (4,357 | ) | $ | 1,632 | $ | (2,725 | ) | ||||
Balance at January 1, 2012 | $ | 280 | $ | — | $ | 280 | ||||||
Other comprehensive income (loss) before reclassifications | 1,805 | (267 | ) | 1,538 | ||||||||
Amounts reclassified for securities gains | — | — | — | |||||||||
Net change in AOCI | 1,805 | (267 | ) | 1,538 | ||||||||
Balance before non-controlling interests at December 31, 2012 | 2,085 | (267 | ) | 1,818 | ||||||||
Non-controlling interests | 351 | (135 | ) | 216 | ||||||||
Balance after non-controlling interests at December 31, 2012 | $ | 1,734 | $ | (132 | ) | $ | 1,602 | |||||
Amounts reclassified from AOCI are included in the consolidated statements of operations as follows. | ||||||||||||
AOCI Component | Amount Reclassified | Line Item Within Statement of Operations | ||||||||||
2014 | 2013 | |||||||||||
AFS securities: | ||||||||||||
Gross reclassification | $ | (126 | ) | $ | (1,215 | ) | Gain on sales of available for sale securities | |||||
Income tax expense | 50 | 468 | Income tax expense (benefit) | |||||||||
Reclassification, net of tax | $ | (76 | ) | $ | (747 | ) |
PARENT_COMPANY_FINANCIAL_DATA
PARENT COMPANY FINANCIAL DATA | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
PARENT COMPANY FINANCIAL DATA | PARENT COMPANY FINANCIAL DATA | |||||||||||
The tables below present the parent company condensed balance sheets, statements of operations, and statements of cash flows for the periods indicated. Yadkin Financial Corporation is currently the parent company for its primary operating subsidiary, Yadkin Bank. Since Piedmont was the accounting acquirer in the Mergers, periods prior to the Mergers reflect Piedmont's parent company-only balances. | ||||||||||||
Parent Company | ||||||||||||
Condensed Balance Sheets | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Cash and due from banks | $ | 2,825 | $ | 631 | ||||||||
Investment securities available for sale | 1,069 | — | ||||||||||
Investment in subsidiaries | 615,570 | 140,233 | ||||||||||
Deferred tax asset, net | 650 | — | ||||||||||
Other assets | 2,286 | 19 | ||||||||||
Total assets | $ | 622,400 | $ | 140,883 | ||||||||
Liabilities and Shareholders' Equity: | ||||||||||||
Long-term debt | $ | 62,481 | $ | — | ||||||||
Accrued interest payable and other liabilities | 2,117 | 83 | ||||||||||
Total liabilities | 64,598 | 83 | ||||||||||
Total shareholders' equity before non-controlling interests | 557,802 | 140,800 | ||||||||||
Total liabilities and shareholders' equity | $ | 622,400 | $ | 140,883 | ||||||||
Parent Company | ||||||||||||
Condensed Statements of Operations | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income: | ||||||||||||
Dividends from subsidiaries | $ | 8,058 | $ | — | $ | — | ||||||
Other income | 54 | — | — | |||||||||
Total income | 8,112 | — | — | |||||||||
Expense: | ||||||||||||
Interest expense | 2,331 | — | — | |||||||||
Other expenses | 837 | 1,247 | 3,939 | |||||||||
Total expenses | 3,168 | 1,247 | 3,939 | |||||||||
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries | 4,944 | (1,247 | ) | (3,939 | ) | |||||||
Income tax benefit | 5,647 | — | — | |||||||||
Income (loss) before equity in undistributed earnings of subsidiaries | 10,591 | (1,247 | ) | (3,939 | ) | |||||||
Equity in undistributed earnings of subsidiaries | 11,114 | 7,120 | 4,727 | |||||||||
Net income | 21,705 | 5,873 | 788 | |||||||||
Dividends on preferred stock | 1,269 | — | — | |||||||||
Net income attributable to non-controlling interests | 2,466 | 3,470 | 1,935 | |||||||||
Net income available to common shareholders | $ | 17,970 | $ | 2,403 | $ | (1,147 | ) | |||||
Parent Company | ||||||||||||
Condensed Statements of Cash Flows | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 21,705 | $ | 5,873 | $ | 788 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Deferred income taxes | (5,647 | ) | — | — | ||||||||
Equity in undistributed earnings of subsidiaries | (11,114 | ) | (7,120 | ) | (4,727 | ) | ||||||
Net change in other assets | 258 | 346 | (343 | ) | ||||||||
Net change in interest payable and other liabilities | (281 | ) | (801 | ) | 398 | |||||||
Other, net | 419 | 280 | 1,412 | |||||||||
Net cash provided by (used) in operating activities | 5,340 | (1,422 | ) | (2,472 | ) | |||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from sales of investment securities available for sale | 13 | — | — | |||||||||
Purchases of cash flow hedges | (1,278 | ) | — | — | ||||||||
Investment in subsidiaries | (323 | ) | — | (9,905 | ) | |||||||
Proceeds from repayment of investment in subsidiaries | 6,014 | 2,000 | — | |||||||||
Proceeds from sale of fixed assets to subsidiary | — | — | 300 | |||||||||
Net cash from business combinations | 4,388 | — | — | |||||||||
Net cash provided by (used in) investing activities | 8,814 | 2,000 | (9,605 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of stock options | 5 | — | — | |||||||||
Repurchase of common stock | (886 | ) | — | — | ||||||||
Distribution to legacy shareholders of Piedmont Community Bank Holdings, Inc. | (9,810 | ) | — | — | ||||||||
Dividends paid on preferred stock | (1,269 | ) | — | — | ||||||||
Other, net | — | — | (63 | ) | ||||||||
Net cash used in financing activities | (11,960 | ) | — | (63 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 2,194 | 578 | (12,140 | ) | ||||||||
Cash and cash equivalents, beginning | 631 | 53 | 12,193 | |||||||||
Cash and cash equivalents, ending | $ | 2,825 | $ | 631 | $ | 53 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Business Combinations | The Mergers were accounted for as a reverse merger using the acquisition method of accounting primarily due to the relative voting interests in the Company upon completion of the Mergers. As a result, Piedmont and its consolidated subsidiaries represent the accounting acquirer, and Yadkin represents the accounting acquiree. Therefore, historical financial results of the Company prior to the Mergers reflect the historical balances of Piedmont. Financial results of the Company following the Mergers reflect balances of the combined organization. As required under the acquisition method of accounting, the assets and liabilities of Yadkin as of the date of the Mergers were recorded at estimated fair value and added to those of Piedmont. The Mergers had a significant impact on all aspects of the Company's financial statements, and as a result, financial results after the Mergers may not be comparable to financial results prior to the Mergers. | |
Business Combinations | ||
Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method of accounting, acquired assets and assumed liabilities are included with the acquirer's accounts as of the date of acquisition at estimated fair value, with any excess of purchase price over the fair value of the net assets acquired (including identifiable core deposit intangibles) capitalized as goodwill. In the event that the fair value of the net assets acquired exceeds the purchase price, an acquisition gain is recorded for the difference in consolidated statements of operations for the period in which the acquisition occurred. The core deposit intangible asset is recognized as an asset apart from goodwill when it arises from contractual or other legal rights or if it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred. | ||
Consolidation, Policy | Basis of Presentation | |
The accompanying consolidated financial statements include the accounts and transactions of the Company and Yadkin Bank. These consolidated financial statements have been retrospectively adjusted for the change in reporting entity described above. All intercompany transactions and balances have been eliminated in consolidation. | ||
Use of Estimates, Policy | Use of Estimates and Assumptions | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash and due from banks, interest-earning deposits with banks and federal funds sold. Cash and cash equivalents have maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. | ||
Investment Securities Available for Sale | Investment Securities | |
The Company classifies marketable investment securities as held to maturity, available for sale, or trading. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. Debt securities are classified as held to maturity where the Company has both the intent and ability to hold the securities to maturity. These securities are reported at amortized cost. Investment securities available for sale are carried at fair value and consist of debt and equity securities not classified as trading or held to maturity. Unrealized holding gains and losses on available for sale securities are reported as a net amount in other comprehensive income, net of related tax effects. Gains and losses on the sale of available for sale securities are determined using the specific identification method. | ||
Each held to maturity and available for sale security in a loss position is evaluated for other-than-temporary impairment. The review includes an analysis of the facts and circumstances of each individual investment such as (1) the length of time and the extent to which the fair value has been below amortized cost, (2) changes in the earnings performance, credit rating, asset quality, or business prospects of the issuer, (3) the ability of the issuer to make principal and interest payments, (4) changes in the regulatory, economic, or technological environment of the issuer, and (5) changes in the general market condition of either the geographic area or industry in which the issuer operates. | ||
Regardless of these factors, if the Company has developed a plan to sell the security or it is likely that the Company will be forced to sell the security in the near future, then the impairment is considered other-than-temporary and the carrying value of the security is permanently written down to the current fair value with the difference between the new carrying value and the amortized cost charged to earnings. If the Company does not intend to sell the security and it is not more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the other-than-temporary impairment is separated into the following: (1) the amount representing the credit loss and (2) the amount related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings, and the amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of applicable taxes. | ||
Loans | Loans | |
Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity, are reported at their outstanding principal adjusted for any charge-offs, deferred fees or costs on originated loans and unamortized premiums or discounts on acquired loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment to the yield of the related loan. Interest on loans is recorded based on the principal amount outstanding. The accrual of interest on impaired loans, for all classes, is discontinued when the future collectability of the recorded loan balance is in doubt. When the future collectability of the recorded loan balance is not in doubt, interest income may be recognized on the cash basis. Generally, loans are placed on nonaccrual when they are past due 90 days or more. When a loan is placed in nonaccrual status, all unpaid accrued interest is reversed and subsequent collections of interest and principal payments are generally applied as a reduction to the principal outstanding. Should the credit quality of a nonaccrual loan improve, the loan can be returned to an accrual status after demonstrating consistent payment history for at least 6 months. | ||
A loan is classified as a troubled debt restructuring (“TDR”) when certain modifications are made to the loan terms and concessions are granted to the borrowers due to financial difficulty experienced by those borrowers. In the past, the Company has granted concessions by (1) reduction of the stated interest rate for the remaining original life of the debt or (2) extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. The Company does not generally grant concessions through forgiveness of principal or accrued interest. The Company's policy with respect to accrual of interest on loans restructured in a TDR follows relevant supervisory guidance. That is, if a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms, continued accrual of interest at the restructured interest rate is likely. If a borrower was materially delinquent on payments prior to the restructuring but shows the capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual until a period of performance under the modified terms has been established. Lastly, if the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. These loans are closely monitored, and the Company ceases accruing interest on them if the borrowers may not continue performing based on the restructured note terms. | ||
The Company's loan policies, guidelines, and procedures establish the basic guidelines governing its lending operations. They address the types of loans sought, target markets, underwriting, collateral requirements, term, interest rate, yield considerations and compliance with laws and regulations. The loan policies are reviewed and approved annually by the Board of Directors of the Bank. The summary below provides an overview of the primary types of loans the Company provides, or classes of loans, including a discussion of relevant underwriting guidelines and risk characteristics. | ||
Commercial and Industrial Loans. These loans are typically for working capital, equipment, and business expansion. Commercial and industrial loans are generally secured by accounts receivable, inventory, equipment and owner-occupied real estate. With few exceptions, the Company requires personal guarantees from the principal business owners. Commercial loans are generally originated with one to seven year maturities for working capital and equipment loans and five to seven year maturities with 15 to 25 year amortizations for owner occupied real estate. | ||
Commercial Real Estate Loans. These loans are secured principally by leased apartments, retail centers, and commercial office and industrial buildings, acquired by the borrower for both investment and owner-occupied purposes. The Company generally requires the personal guaranty of the principal business owners on all such loans. The real estate collateral is a secondary source of repayment. Commercial real estate loans are generally originated with three to seven year maturities with up to 25 year amortizations. | ||
Construction Loans. These loans are generally originated with one to 5 year maturities and may have an amortization feature that could extend up to 25 years once the properties are stabilized. The Company's primary focus on one-to-four family residential construction loans is to borrowers who are the primary end users or to builders in situations in which the home is pre-sold to the end user and the loan is repaid when the end user secures a permanent mortgage. These loans are generally originated with maturities up to 1.5 years in length. Construction loans to home builders for speculative residential homes are not a focus for the Company. In many cases, home builders do require a speculative component to their lending facilities; however, credit exposure is controlled through the covenants relating to the home builder's speculative-to-sold ratio. Any loans made in this product would be to well-established home builders with an excellent track record who are focused on delivering commodity-style housing. Through its Builder Finance division, the Company lends to home builders in its markets who have demonstrated a favorable record of performance and profitable operations. The Company's loan policies require personal guarantees of the principal business owners. | ||
Consumer Loans, Home Equity Lines of Credit and Residential Real Estate Loans. Consumer loans include automobile loans, boat and recreational vehicle financing, home equity and home improvement loans, and miscellaneous secured and unsecured personal loans. Residential real estate loans are made for purchasing and refinancing one-to-four family properties. The Company also offers construction-to-permanent loans for one-to-four family properties. These loans are generally sold to investors when construction is complete and the loan converts to permanent financing. The Company offers fixed and variable rate options on consumer loans but generally limits the maximum term to 5 to 7 years for non-real estate secured loans. | ||
Purchased Non-impaired Loans | ||
Purchased non-impaired loans are also recorded at fair value at acquisition, and the related fair value discount or premium is recognized as an adjustment to yield over the remaining life of each loan using the interest method. | ||
Purchased Credit-Impaired Loans | Purchased Credit-Impaired Loans | |
Loans acquired in a transfer, including business combinations, where there is evidence of credit deterioration since origination and it is probable at the date of acquisition that we will not collect all contractually required principal and interest payments, are accounted for as purchased credit-impaired (“PCI”) loans. Where possible, PCI loans with common risk characteristics are grouped into pools at acquisition. For PCI loan pools, the excess of the cash flows initially expected to be collected over the fair value of the loans at the acquisition date (i.e., the accretable yield) is accreted into interest income over the estimated remaining life of the PCI loans using the effective yield method, provided that the timing and the amount of future cash flows is reasonably estimable. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. | ||
Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities, and other factors that are reflective of current market conditions. If the Company has probable decreases in pool-level cash flows expected to be collected, the provision for loan losses is charged, resulting in an increase to the ALLL. If the Company has probable and significant increases in pool-level cash flows expected to be collected, the Company will first reverse any previously established ALLL and then increase interest income as a prospective yield adjustment over the remaining life of the loan pool. The impact of changes in variable interest rates is recognized prospectively as adjustments to interest income. | ||
Allowance for Loan Losses | Allowance for Loan Losses | |
The ALLL and related provision are calculated for the Company's two portfolio categories: PCI loans and non-PCI loans. The following description of the Company's ALLL methodology primarily relates to non-PCI loans. The evaluation of PCI loans for impairment follows a different methodology which is described above. The ALLL is a reserve established through a provision for loan losses charged to expense. Balances are charged against the ALLL when the collectability of principal is unlikely. Subsequent recoveries, if any, are credited to the ALLL. The ALLL is maintained at a level based on management's best estimate of probable credit losses that are inherent in the loan portfolio. Management evaluates the adequacy of the ALLL on at least a quarterly basis. | ||
For non-PCI loans, the evaluation of the adequacy of the ALLL includes both loans evaluated collectively for impairment and loans evaluated individually for impairment. The determination of loss rates on loans collectively evaluated for impairment involves considerations of historic loan loss experience as well as certain qualitative factors such as current delinquency levels and trends, loan growth, loan portfolio composition and concentrations, prevailing economic conditions, the loan review function, and other relevant factors. The annualized trailing 3.5-year historical loss rates are used in combination with the qualitative factors to determine appropriate loss rates for each identified risk category. | ||
The Company utilizes an internal grading system to assign the degree of inherent risk on each loan in the portfolio. The risk grade is initially assigned by the lending officer and reviewed by the credit administration function. The internal risk grading system is reviewed and tested periodically by the loan review function. The Company's allowance for loan loss model uses the internal loan grading system to segment each category of loans by risk grade. Calculated loss rates are weighted more heavily for higher risk loans. | ||
A loan is considered individually impaired when, based on current information and events, if it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. These loans are evaluated individually for impairment if they exceed a quantitative threshold of $250 at the borrower level or have been modified in a TDR. Reserves, or charge-offs, on individually impaired loans that are collateral dependent are based on the fair value of the underlying collateral, less an estimate of selling costs, while reserves, or charge-offs, on loans that are not collateral dependent are based on either an observable market price, if available, or the present value of expected future cash flows discounted at the historical effective interest rate. The Company evaluates loans that are classified as doubtful, substandard or special mention to determine whether or not they are individually impaired. This evaluation includes several factors, including review of the loan payment status and the borrower’s financial condition and operating results such as cash flows, operating income or loss, etc. | ||
The evaluation of the ALLL is inherently subjective, and management uses the best information available to establish this estimate. However, if factors such as economic conditions differ substantially from assumptions, or if amounts and timing of future cash flows expected to be received on impaired loans vary substantially from the estimates, future adjustments to the ALLL may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to recognize additions to the ALLL based on their judgments about all relevant information available to them at the time of their examination. Any adjustments to original estimates are made in the period in which the factors and other considerations indicate that adjustments to the ALLL are necessary. | ||
Loans Held for Sale | Loans Held for Sale | |
Mortgage loans originated and intended for sale in the secondary market are classified as held for sale and are carried at the lower of cost or fair value. Upon closing, these loans are sold to mortgage loan investors under pre-arranged terms. Origination fees are recognized upon the sale and are included in non-interest income. Related to the mortgage business, the Company enters into interest rate lock commitments and commitments to sell mortgages to investors. Interest rate lock commitments are used to manage interest rate risk associated with the fixed rate loan commitments, and forward sale commitments are entered into with investors to manage the interest rate risk associated with the customer interest rate lock commitments, both of which are considered derivative financial instruments. The period of time between the issuance of a loan commitment and the closing and sale of the loan generally ranges from 10 to 60 days. Interest rate lock commitments and forward sale commitments are derivative instruments and are carried at fair value. These derivative instruments do not qualify for hedge accounting. The fair value of interest rate lock commitments is based on current secondary market pricing and is included in other assets on the balance sheet. The fair value of the forward sale commitments is based on changes in the value of the commitment, principally because of changes in interest rates, and is included on the consolidated balance sheets in other assets or other liabilities. Changes in fair value for these instruments are reflected in non-interest income on the income statement. Gains and losses from sales of the mortgage loans are recognized when the Company ultimately sells the loans, and such gains and losses are also recorded in non-interest income. | ||
The Company provides loans guaranteed by the Small Business Administration (“SBA”) for the purchase of businesses, business startups, business expansion, equipment, and working capital. All SBA loans are underwritten and documented as prescribed by the SBA. SBA loans are generally fully amortizing and have maturity dates and amortizations of up to 25 years. The portion of SBA loans originated that are guaranteed and intended for sale on the secondary market are classified as held for sale and are carried at the lower of cost or fair value. The loan participations are sold and the servicing rights are retained. At the time of the sale, an asset is recorded for the value of the servicing rights and is amortized over the remaining life of the loan on the effective interest method. The servicing asset is included in other assets and the amortization of the servicing asset is included in non-interest expense. Servicing fees are recorded in non-interest income. A gain is recorded for any premium paid in excess of the carrying value of the net assets transferred in the sale and is also included in non-interest income. The portion of SBA loans that are retained are also adjusted for a retained discount to reflect the effective interest rate on the retained unguaranteed portion of the loans. The net value of the retained loans is included in the appropriate loan classification for disclosure purposes. These loans are primarily commercial real estate or commercial and industrial. | ||
Federal Home Loan Bank of Atlanta Stock | Federal Home Loan Bank of Atlanta Stock | |
As a requirement for membership, the Company has invested in common stock of the Federal Home Loan Bank of Atlanta (“FHLB”). This investment is carried at cost and is periodically evaluated for impairment. | ||
Property and Equipment | Premises and Equipment | |
Land is carried at cost. Other components of premises and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of assets, which range from 37 to 40 years for buildings and three to ten years for furniture, software, and equipment. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are charged to operations as incurred, and additions and improvements to premises and equipment are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any gains or losses are reflected in earnings. | ||
Premises and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Assets to be disposed of are transferred to other real estate owned and are reported at the lower of the carrying amount or fair value less costs to sell. | ||
Bank-Owned Life Insurance | Bank-Owned Life Insurance | |
The Company has purchased life insurance policies on certain current and former employees and directors. These policies are recorded in other assets at their cash surrender value, or the amount that could be realized by surrendering the policies. Income from these policies and changes in the net cash surrender value are recorded in non-interest income. | ||
Foreclosed Assets | Foreclosed Assets | |
Foreclosed assets include repossessed assets and other real estate owned. Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell upon foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed, and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and valuation adjustments are included in net expenses from foreclosed assets. | ||
Income Taxes | Income Taxes | |
Deferred income taxes are determined by application to temporary differences of the tax rate expected to be in effect when taxes will become payable or receivable. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. A valuation allowance is recorded for deferred tax assets if the Company determines that it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||
Mortgage Servicing Rights and SBA Servicing Asset | Mortgage Servicing Rights | |
The Company retains servicing rights on mortgage loans sold to investors ("MSR"). MSRs are initially recognized at fair value in other assets on the consolidated balance sheets and are subsequently accounted for at the lower of cost or market. MSRs are amortized in proportion to, and over the estimated period, that net servicing income is expected to be received based on estimates of net cash flows on the loans serviced. The amount and timing of estimated future net cash flows are updated based on actual results and updated projections. MSRs are separated into pools based on common risk characteristics of the underlying loans, and impairment is evaluated at least quarterly at the pool level. If impairment exists at the pool level, the MSR is written down through a valuation allowance and is charged against mortgage banking income. | ||
SBA Servicing Asset | ||
All sales of SBA-guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. The standard sale structure under the SBA Secondary Participation Guaranty Agreement provides for the Company to retain a portion of the cash flow from the interest payment received on the loan. This cash flow is commonly known as a servicing spread. SBA regulations require the lender to retain a minimum 100 basis points in servicing spread for any guaranteed loan sold for a premium. The minimum servicing spread is further defined as a minimum service fee of 40 basis points and a minimum premium protection fee of 60 basis points. The servicing spread is recognized as a servicing asset to the extent the spread exceeds adequate compensation for the servicing function. Industry practice recognizes adequate compensation for servicing SBA loans as the minimum service fee of 40 basis points. The fair value of the servicing asset is measured at the discounted present value of the premium protection fee over the expected life of the related loan using appropriate discount rates and prepayment assumptions based on industry statistics. SBA servicing assets are initially recognized at fair value and amortized over the expected life of the related loans as a reduction of the servicing income recognized from the servicing spread. | ||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |
Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business combinations. Goodwill has an indefinite useful life and is evaluated for impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The goodwill impairment analysis is a two-step test. The first, used to identify potential impairment, involves comparing each reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment. The Company performs its annual goodwill impairment test as of October 31 of each year. For 2014, the results of the first step of the goodwill impairment test provided no indication of potential impairment. Goodwill will continue to be monitored for triggering events that may indicate impairment prior to the next scheduled annual impairment test. | ||
Intangible assets with finite lives are amortized over their estimated useful lives. Other intangible assets, which consist of core deposit intangibles, are being amortized over seven to ten-year periods using an accelerated method. | ||
Derivatives | Derivative Financial Instruments | |
The Company's interest rate risk management strategy incorporates the use of derivative financial instruments, specifically interest rate swaps and caps. The Company also utilizes interest rate lock commitments and forward sale commitments, which are considered derivative instruments, in its mortgage banking operations. The accounting policies for these mortgage banking derivatives are described in "Loans Held for Sale." The interest rate swaps and caps are expected to be highly effective and have been designated as cash flow hedges. Therefore, changes in fair value are recognized in other comprehensive income until the related cash flows from the hedged item are recognized in earnings. For the interest rate caps, the initial fair value of the premium paid is allocated and recognized in the same future period that the hedged forecasted transaction impacts earnings. | ||
For cash flow hedges, ineffectiveness may be recognized to the extent that changes in value of the derivative instruments do not perfectly offset changes in the value of the hedged item. If the hedge ceases to be highly effective, hedge accounting is discontinued and changes in fair value are recognized in earnings. If a derivative instrument qualifying as a cash flow hedge is terminated or the designation removed, the realized or then unrealized gain or loss is recognized in earnings over the period in which the hedged item affects earnings. Immediate recognition in earnings is required if it is probable that the hedged cash flows will not occur. | ||
The Company only transacts with derivative counterparties with strong credit standings and requires liquid collateral to secure credit exposure. Due to these factors, the fair value of derivatives with derivative counterparties is primarily based on the interest rate mark of each trade. | ||
Stock-Based Compensation | Stock-Based Compensation | |
Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors. Compensation cost is measured as the fair value of these awards on their date of grant. An option pricing model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used as the fair value of restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock options awards and as the restriction period for restricted stock awards. | ||
Compensation cost is recognized on a pro rata basis for stock warrants previously granted to certain employees, officers and directors of Piedmont. Compensation cost was measured as the fair value of these awards on their date of grant. A Monte Carlo option pricing model was utilized to estimate the fair value of Piedmont’s stock warrants issued. Compensation cost is recognized over the vesting period. | ||
Fair Value Measurements | Fair Value Measurements | |
Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company follows the fair value hierarchy which gives the highest priority to quoted prices in active markets (observable inputs) and the lowest priority to management’s assumptions (unobservable inputs). For assets and liabilities recorded at fair value, the Company’s policy is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. | ||
The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available-for-sale investment securities and derivatives are recorded at fair value on a recurring basis. Additionally, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans, loans held for sale, impaired loans and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. | ||
Assets and liabilities measured at fair value are grouped in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. An adjustment to the pricing method used within either Level 1 or Level 2 inputs could generate a fair value measurement that effectively falls to a lower level in the hierarchy. These levels are described as follows: | ||
• | Level 1 – Valuations for assets and liabilities traded in active exchange markets. | |
• | Level 2 – Valuations for assets and liabilities that can be obtained from readily available pricing sources via independent providers for market transactions involving similar assets or liabilities. The Company’s principal market for these securities is the secondary institutional markets, and valuations are based on observable market data in those markets. | |
• | Level 3 – Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. | |
The determination of where an asset or liability falls in the fair value hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures at each reporting period and based on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, management expects that changes in classifications between levels will be rare. | ||
Per Share Results | Per Share Results | |
Basic and diluted net income per share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted net income per share reflects the potential dilution that could occur if common stock options and warrants were exercised, resulting in the issuance of common stock that then shared in the net income of the Company. | ||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |
The Company’s accumulated other comprehensive income (loss) is comprised of unrealized gains and losses on securities available for sale and unrealized gains and losses on cash flow hedges to the extent that the hedges were effective. Details on the components of accumulated other comprehensive income are outlined in Note R of the Notes to Consolidated Financial Statements. | ||
Segment Reporting | Segment Reporting | |
Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management has determined that the Company has a single operating segment, which is providing general commercial banking and financial services to individuals and businesses located in North Carolina and South Carolina, and to customers in various states through its SBA lending program. The Company's various products and services are those generally offered by community banks, and the allocation of resources is based on the overall performance of the company versus individual regions, branches, products and services. | ||
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards | |
In November 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-17: Business Combinations (Topic 805): Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force). The amendments in this Update provide the option for acquired entities to apply pushdown accounting in their stand-alone financial statements when a change-in-control event takes place. This election may be made at each change-in-control event, and allows entities to apply pushdown accounting in a subsequent period if not applied in the period in which the change-in-control event took place. The amendments in this Update were effective upon issue on November 18, 2014, allowing entities to apply the provisions to future change-in-control events or to its most recent change-in-control event. Adoption of this Update did not have an impact on the Company’s financial position or results of operations. | ||
In August 2014, the FASB issued ASU No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The amendments in this Update require a reporting entity to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance expected to be recovered from the guarantor. The amendments in this Update are effective for interim and annual periods beginning after December 15, 2014. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. | ||
In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860). The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. The guidance also requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. This Update is effective for interim and annual reporting periods beginning after December 15, 2014. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this Update provide a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This Update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The amendments in this Update are effective for periods beginning after December 15, 2016 and early adoption is not permitted. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. | ||
In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments in this Update are effective for periods beginning after December 15, 2014. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. | ||
In January 2014, the FASB issued ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update are effective for periods beginning after December 15, 2014. Adoption of this Update is not expected to have a material impact on the Company’s financial position or results of operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Schedule of basic and diluted net income (loss) per share | Basic and diluted net income per share have been computed based upon net income available to common shareholders as presented in the accompanying consolidated statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below. | ||||||||
Year ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Weighted average number of common shares | 20,500,519 | 9,219,406 | 9,219,406 | ||||||
Effect of dilutive stock options and warrants | 4,623 | — | — | ||||||
Weighted average number of common shares and dilutive potential common shares | 20,505,142 | 9,219,406 | 9,219,406 | ||||||
Anti-dilutive stock options | 49,474 | — | — | ||||||
Anti-dilutive stock warrants | 91,178 | — | — | ||||||
MERGERS_AND_ACQUISITIONS_Table
MERGERS AND ACQUISITIONS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||
Schedule of Business Acquisitions by Acquisition, Equity Interest Issued or Issuable | The equivalent Piedmont market price per share was calculated based on the 6.28597 exchange ratio in the Mergers. | |||||||||||||||
Calculation of Purchase Price | ||||||||||||||||
Equivalent Piedmont market price per share | $ | 122.01 | ||||||||||||||
Number of Piedmont shares issued to Yadkin shareholders | 2,287,654 | |||||||||||||||
Purchase price (in thousands) | $ | 279,115 | ||||||||||||||
Next, the number of shares Piedmont would have had to issue to give Yadkin and other owners the same percentage ownership in the combined institution is calculated in the table below. | ||||||||||||||||
Hypothetical Piedmont Ownership | ||||||||||||||||
Shareholder Groups Immediately Prior to Mergers | Number of Outstanding Piedmont Shares | Percentage Ownership | ||||||||||||||
Piedmont shareholders | 1,466,664 | 29.1 | % | |||||||||||||
VantageSouth shareholders (excluding Piedmont) | 1,144,633 | 22.7 | ||||||||||||||
Shares issued and held in Rabbi Trust | 136,247 | 2.7 | ||||||||||||||
Total Piedmont and VantageSouth shareholders | 2,747,544 | 54.6 | ||||||||||||||
Yadkin shareholders | 2,287,654 | 45.4 | ||||||||||||||
Total | 5,035,198 | 100 | % | |||||||||||||
The table below summarizes, for each shareholder group immediately prior to the Mergers, the ownership of Yadkin common stock immediately following the Mergers as well as the market capitalization of the combined institution using Yadkin’s stock price at the time of the Mergers. | ||||||||||||||||
Yadkin Financial Corporation Ownership and Market Value Table | ||||||||||||||||
Shareholder Groups Immediately Prior to Mergers | Number of Outstanding YDKN Shares | Percentage Ownership | Market Value at $19.41 YDKN Share Price | |||||||||||||
Piedmont shareholders | 9,219,406 | 29.1 | % | $ | 178,949 | |||||||||||
VantageSouth shareholders (excluding Piedmont) | 7,195,127 | 22.7 | 139,657 | |||||||||||||
Shares issued and held in Rabbi Trust | 856,447 | 2.7 | 16,624 | |||||||||||||
Total Piedmont and VantageSouth shareholders | 17,270,980 | 54.6 | 335,230 | |||||||||||||
Yadkin shareholders | 14,380,127 | 45.4 | 279,118 | |||||||||||||
Total | 31,651,107 | 100 | % | $ | 614,348 | |||||||||||
Schedule of assets acquired, liabilities assumed and other equity interest | The following table presents the ECB assets acquired, liabilities assumed and other equity interests as of April 1, 2013, as well as the related purchase price allocation and calculation of the gain on acquisition. | |||||||||||||||
As Reported by ECB at | Initial | Measurement Period Adjustments | As Reported by the Company at | |||||||||||||
1-Apr-13 | Fair Value Adjustments | 1-Apr-13 | ||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 24,008 | $ | — | $ | — | $ | 24,008 | ||||||||
Investment securities available for sale | 289,058 | 301 | (a) | — | 289,359 | |||||||||||
Loans held for sale | 3,857 | 9,790 | (b) | (191 | ) | (m) | 13,456 | |||||||||
Loans, net | 483,474 | (30,420 | ) | (c) | — | 453,054 | ||||||||||
Federal Home Loan Bank stock, at cost | 3,150 | — | — | 3,150 | ||||||||||||
Premises and equipment | 25,633 | (1,177 | ) | (d) | 135 | (m) | 24,591 | |||||||||
Bank-owned life insurance | 12,249 | — | — | 12,249 | ||||||||||||
Foreclosed assets | 7,090 | (717 | ) | (e) | (305 | ) | (m) | 6,068 | ||||||||
Deferred tax asset, net | 6,986 | 9,082 | (f) | 540 | (m) | 16,608 | ||||||||||
Other intangible assets | — | 4,307 | (g) | — | 4,307 | |||||||||||
Accrued interest receivable and other assets | 10,423 | (665 | ) | (h) | (922 | ) | (m) | 8,836 | ||||||||
Total assets | 865,928 | (9,499 | ) | (743 | ) | 855,686 | ||||||||||
Liabilities: | ||||||||||||||||
Deposits | $ | 731,926 | $ | 4,188 | (i) | $ | — | $ | 736,114 | |||||||
Short-term borrowings | 34,284 | — | — | 34,284 | ||||||||||||
Long-term debt | 16,000 | 460 | (j) | — | 16,460 | |||||||||||
Accrued interest payable and other liabilities | 2,867 | 148 | (k) | 116 | (m) | 3,131 | ||||||||||
Total liabilities | 785,077 | 4,796 | 116 | 789,989 | ||||||||||||
Net assets acquired | 80,851 | (14,295 | ) | (859 | ) | 65,697 | ||||||||||
Other equity interests: | ||||||||||||||||
Preferred stock | 17,660 | (107 | ) | (l) | — | 17,553 | ||||||||||
Common stock warrant | 878 | (745 | ) | (l) | — | 133 | ||||||||||
Total other equity interests | 18,538 | (852 | ) | — | 17,686 | |||||||||||
Gain on acquisition | 7,382 | |||||||||||||||
Purchase price | $ | 40,629 | ||||||||||||||
Explanation of fair value adjustments | ||||||||||||||||
(a) Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. | ||||||||||||||||
(b) Adjustment reflect the reclassification of the fair value of certain loans identified by management as being held for sale at acquisition. | ||||||||||||||||
(c) Adjustment reflects the elimination of ECB's historical allowance for loan losses and the recording of a fair value discount on the loan portfolio. The fair value discount was calculated by forecasting cash flows over the expected remaining life of each loan and discounting those cash flows to present value using current market rates for similar loans. Forecasted cash flows include an estimate of lifetime credit losses on the loan portfolio. | ||||||||||||||||
(d) Adjustment reflects fair value adjustments on certain acquired branch offices as well as certain software and computer equipment. | ||||||||||||||||
(e) Adjustment reflects the write down of certain foreclosed assets based on current estimates of property values given current market conditions and additional discounts based on the Company's planned disposition strategy. | ||||||||||||||||
(f) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | ||||||||||||||||
(g) Adjustment reflects the fair value of the acquired core deposit intangible. | ||||||||||||||||
(h) Adjustment reflects the impact of fair value adjustments on other assets, which include the write down of certain unusable prepaid expenses and the elimination of accrued interest on purchased credit-impaired loans. | ||||||||||||||||
(i) Adjustment reflects the fair value premium on time deposits, which was calculated by discounting future contractual interest payments at a current market interest rate. | ||||||||||||||||
(j) Adjustment reflects the fair value premium on long-term FHLB advances, which was calculated by discounting future contractual interest payments at a current market interest rate. This fair value premium is also consistent with the prepayment penalty the FHLB would charge to terminate the advance. | ||||||||||||||||
(k) Adjustment reflects the impact of fair value adjustments on other liabilities, which primarily includes the accrual of a preferred stock dividend at acquisition. | ||||||||||||||||
(l) Amount reflects the adjustment to record other equity interests at fair value. The fair value of preferred stock issued to Treasury was estimated by discounting future contractual dividend payments at a current market interest rate for preferred stocks of issuers with similar risk. The assumed liquidation date of the preferred stock was February 15, 2014, which was the date the dividend reset from 5 to 9 percent. The fair value of the common stock warrant issued to Treasury was estimated using a Black-Scholes option pricing model assuming a warrant life through the dividend reset date. | ||||||||||||||||
(m) Adjustments reflect changes to acquisition date fair values of certain assets based on additional information received post-acquisition within the measurement period. Measurement period adjustments included tax-effected adjustments to reduce the fair value of a non-marketable investment, to dispose of other assets with no value at the merger, to reduce the fair value of certain distressed loans held for sale, to reduce the fair value of certain other real estate owned, to recognize a liability for outstanding ECB employee credit card balances, and to increase the fair value of a bank-owned office. | ||||||||||||||||
The following table presents the Yadkin assets acquired, liabilities assumed and other equity interests as of July 4, 2014 as well as the related purchase price allocation and calculation of the residual goodwill. | ||||||||||||||||
As Reported by Yadkin at | Initial | Measurement Period Adjustments | As Reported by the Company at | |||||||||||||
4-Jul-14 | Fair Value Adjustments | 4-Jul-14 | ||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 36,116 | $ | — | $ | — | $ | 36,116 | ||||||||
Investment securities available for sale | 259,143 | (1,488 | ) | (a) | — | 257,655 | ||||||||||
Loans held for sale | 15,696 | — | — | 15,696 | ||||||||||||
Loans, net | 1,403,419 | (30,740 | ) | (b) | — | 1,372,679 | ||||||||||
Federal Home Loan Bank stock, at cost | 3,778 | — | — | 3,778 | ||||||||||||
Premises and equipment | 40,204 | (2,344 | ) | (c) | — | 37,860 | ||||||||||
Bank-owned life insurance | 27,306 | — | — | 27,306 | ||||||||||||
Foreclosed assets | 2,271 | (601 | ) | (d) | — | 1,670 | ||||||||||
Deferred tax asset, net | 16,955 | 5,939 | (e) | — | 22,894 | |||||||||||
Goodwill | — | 124,172 | (f) | 657 | (n) | 124,829 | ||||||||||
Other intangible assets | 1,665 | 10,965 | (g) | 321 | (o) | 12,951 | ||||||||||
Accrued interest receivable and other assets | 16,330 | (2,229 | ) | (h) | 542 | (p) | 14,643 | |||||||||
Total assets | 1,822,883 | 103,674 | 1,520 | 1,928,077 | ||||||||||||
Liabilities: | ||||||||||||||||
Deposits | $ | 1,509,581 | $ | 5,019 | (i) | $ | — | $ | 1,514,600 | |||||||
Short-term borrowings | 72,879 | — | — | 72,879 | ||||||||||||
Long-term debt | 38,217 | (15,486 | ) | (j) | — | 22,731 | ||||||||||
Accrued interest payable and other liabilities | 8,448 | (338 | ) | (k) | 1,520 | (q) | 9,630 | |||||||||
Total liabilities | 1,629,125 | (10,805 | ) | 1,520 | 1,619,840 | |||||||||||
Net assets acquired | 193,758 | 114,479 | — | 308,237 | ||||||||||||
Other equity interests: | ||||||||||||||||
Preferred stock | 28,405 | — | (l) | — | 28,405 | |||||||||||
Common stock warrants | 1,850 | (1,133 | ) | (m) | — | 717 | ||||||||||
Total other equity interests | 30,255 | (1,133 | ) | — | 29,122 | |||||||||||
Purchase price | $ | 279,115 | ||||||||||||||
Explanation of fair value adjustments | ||||||||||||||||
(a) Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. | ||||||||||||||||
(b) Adjustment reflects the elimination of Yadkin's historical allowance for loan losses of $16.4 million and the recording of a fair value discount of $47.2 million on the loan portfolio. The fair value discount was calculated by forecasting cash flows over the expected remaining life of each loan and discounting those cash flows to present value using current market rates for similar loans. Forecasted cash flows include an estimate of lifetime credit losses on the loan portfolio. | ||||||||||||||||
(c) Adjustment reflects fair value adjustments on certain acquired branch offices as well as certain software and computer equipment. | ||||||||||||||||
(d) Adjustment reflects the write down of certain foreclosed assets based on current estimates of property values given current market conditions and additional discounts based on the Company's planned disposition strategy. | ||||||||||||||||
(e) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | ||||||||||||||||
(f) Goodwill represents the excess of the purchase price over the fair value of acquired net assets. | ||||||||||||||||
(g) Adjustment reflects the estimated fair value of the acquired core deposit intangible. | ||||||||||||||||
(h) Adjustment reflects the impact of fair value adjustments on other assets, which include mortgage servicing assets, certain unusable prepaid expenses, and the elimination of accrued interest on purchased credit-impaired loans. | ||||||||||||||||
(i) Adjustment reflects the fair value premium on time deposits, which was calculated by discounting future contractual interest payments at a current market interest rate. | ||||||||||||||||
(j) Adjustments reflect the fair value adjustments for subordinated debt issued to fund trust preferred securities and long-term Federal Home Loan Bank ("FHLB") advances, which were calculated by discounting future contractual interest payments at a current market interest rate for similar instruments. For FHLB advances, the fair value adjustment is consistent with the prepayment penalty the FHLB would charge to terminate the advance. | ||||||||||||||||
(k) Adjustments reflect accruals and fair value adjustments for other liabilities, which include the write-off of unearned income, deferred gains, and accrued liabilities that will not be paid. | ||||||||||||||||
(l) No fair value adjustments were made to Yadkin's outstanding preferred stock. The current preferred dividend rate of 9.0 percent approximates the current market yield for issuances of similar perpetual preferred stock. The preferred stock is currently redeemable at the liquidation value, and the Company expects the remaining life of this preferred stock to be relatively short. | ||||||||||||||||
(m) The fair value of the common stock warrants was estimated using a Black-Scholes option pricing model assuming all 91,178 warrants will remain outstanding through expiration on July 24, 2019. Assumptions and inputs used in the option pricing model included stock price volatility of 48.6 percent, no dividends, a risk free interest rate of 1.74 percent, and an exercise price of $21.90 per common warrant. | ||||||||||||||||
(n) Amount reflects adjustments to goodwill resulting from adjustments (o), (p) and (q). | ||||||||||||||||
(o) Amount reflects an adjustment to estimated fair value of the acquired core deposit intangible. | ||||||||||||||||
Explanation of fair value adjustments (continued) | ||||||||||||||||
(p) Amount reflects adjustments to acquired deferred tax assets and the tax impact of adjustments (o) and (q). | ||||||||||||||||
(q) Amount reflects the adjustment of change in control obligations existing under various employment agreements that were triggered by the Mergers. | ||||||||||||||||
Pro forma information | The table below presents supplemental pro forma information as if the Company's Mergers with VantageSouth and Piedmont as well as the ECB Merger had occurred on January 1, 2013. Pro forma results include adjustments for amortization and accretion of estimated fair value adjustments and do not include any projected cost savings or other anticipated benefits of the Mergers. Therefore, the pro forma financial information is not indicative of the results of operations that would have occurred had the transactions been effected on the assumed date. | |||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Total interest and non-interest income | $ | 212,531 | $ | 208,608 | ||||||||||||
Net interest income | $ | 157,805 | $ | 153,437 | ||||||||||||
Net income | $ | 34,370 | $ | 23,009 | ||||||||||||
Net income available to common shareholders | $ | 31,934 | $ | 20,867 | ||||||||||||
Basic income per common share | $ | 1.02 | $ | 0.73 | ||||||||||||
Diluted income per common share | $ | 1.02 | $ | 0.73 | ||||||||||||
Weighted average basic common shares outstanding | 31,295,562 | 28,568,000 | ||||||||||||||
Weighted average diluted common shares outstanding | 31,375,585 | 28,640,684 | ||||||||||||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Schedule of amortized cost, gross unrealized gains and losses, and fair value of investment securities | The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale and held to maturity by major classification. | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
GSE obligations | $ | 14,914 | $ | 30 | $ | — | $ | 14,944 | |||||||||||||||||
SBA-guaranteed securities | 60,408 | 84 | 372 | 60,120 | |||||||||||||||||||||
Mortgage-backed securities issued by GSE | 428,076 | 1,086 | 3,879 | 425,283 | |||||||||||||||||||||
Corporate bonds | 118,799 | 1,261 | 148 | 119,912 | |||||||||||||||||||||
Non-agency RMBS | 4,961 | 3 | 1 | 4,963 | |||||||||||||||||||||
Non-agency CMBS | 3,576 | 2 | — | 3,578 | |||||||||||||||||||||
Municipal bonds | 39,907 | 355 | 4 | 40,258 | |||||||||||||||||||||
Other debt securities | 498 | — | — | 498 | |||||||||||||||||||||
Marketable equity securities | 3,017 | 1 | 153 | 2,865 | |||||||||||||||||||||
Total securities available for sale | $ | 674,156 | $ | 2,822 | $ | 4,557 | $ | 672,421 | |||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||
Municipal bonds | $ | 39,620 | $ | 966 | $ | — | $ | 40,586 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
GSE obligations | $ | 14,834 | $ | — | $ | 161 | $ | 14,673 | |||||||||||||||||
SBA-guaranteed securities | 66,579 | 52 | 751 | 65,880 | |||||||||||||||||||||
Mortgage-backed securities issued by GSE | 216,818 | 69 | 11,627 | 205,260 | |||||||||||||||||||||
Corporate bonds | 109,423 | 1,800 | 483 | 110,740 | |||||||||||||||||||||
Non-agency CMBS | 5,867 | 71 | — | 5,938 | |||||||||||||||||||||
Municipal bonds | 600 | 1 | — | 601 | |||||||||||||||||||||
Other debt securities | 253 | — | — | 253 | |||||||||||||||||||||
Marketable equity securities | 677 | 366 | — | 1,043 | |||||||||||||||||||||
Total securities available for sale | $ | 415,051 | $ | 2,359 | $ | 13,022 | $ | 404,388 | |||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||
Corporate bonds | $ | 500 | $ | — | $ | — | $ | 500 | |||||||||||||||||
Schedule of gross unrealized losses and fair values of securities in a continuous unrealized loss position | The following tables summarize gross unrealized losses and fair values, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
SBA-guaranteed securities | $ | 94 | $ | 1 | $ | 41,950 | $ | 371 | $ | 42,044 | $ | 372 | |||||||||||||
Mortgage-backed securities issued by GSE | 152,186 | 1,117 | 149,746 | 2,762 | 301,932 | 3,879 | |||||||||||||||||||
Corporate bonds | 18,123 | 64 | 3,767 | 84 | 21,890 | 148 | |||||||||||||||||||
Non-agency RMBS | 1,318 | 1 | — | — | 1,318 | 1 | |||||||||||||||||||
Municipal bonds | 1,953 | 4 | — | — | 1,953 | 4 | |||||||||||||||||||
Equity securities | 2,711 | 153 | — | — | 2,711 | 153 | |||||||||||||||||||
Total temporarily impaired AFS securities | $ | 176,385 | $ | 1,340 | $ | 195,463 | $ | 3,217 | $ | 371,848 | $ | 4,557 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
GSE obligations | $ | 14,673 | $ | 161 | $ | — | $ | — | $ | 14,673 | $ | 161 | |||||||||||||
SBA-guaranteed securities | 57,277 | 751 | — | — | 57,277 | 751 | |||||||||||||||||||
Mortgage-backed securities issued by GSE | 198,885 | 11,627 | — | — | 198,885 | 11,627 | |||||||||||||||||||
Corporate bonds | 19,420 | 483 | — | — | 19,420 | 483 | |||||||||||||||||||
Total temporarily impaired AFS securities | $ | 290,255 | $ | 13,022 | $ | — | $ | — | $ | 290,255 | $ | 13,022 | |||||||||||||
Schedule of amortized cost and fair value by contractual maturity | The amortized cost and fair values of securities available for sale, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Due within one year | $ | 30,365 | $ | 30,536 | $ | 677 | $ | 678 | |||||||||||||||||
Due after one year through five years | 294,557 | 295,252 | 182,777 | 182,713 | |||||||||||||||||||||
Due after five years through ten years | 313,733 | 311,313 | 173,624 | 166,765 | |||||||||||||||||||||
Due after ten years | 32,484 | 32,455 | 57,296 | 53,189 | |||||||||||||||||||||
Marketable equity securities | 3,017 | 2,865 | 677 | 1,043 | |||||||||||||||||||||
$ | 674,156 | $ | 672,421 | $ | 415,051 | $ | 404,388 | ||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||
Due after one year through five years | $ | 20,177 | $ | 20,747 | $ | 500 | $ | 500 | |||||||||||||||||
Due after five years through ten years | 15,836 | 16,092 | — | — | |||||||||||||||||||||
Due after ten years | 3,607 | 3,747 | — | — | |||||||||||||||||||||
$ | 39,620 | $ | 40,586 | $ | 500 | $ | 500 | ||||||||||||||||||
Schedule of securities gains (losses) | The following table summarizes securities gains (losses) for the periods presented. | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Gross gains on sales of securities available for sale | $ | 453 | $ | 1,250 | $ | 1,335 | |||||||||||||||||||
Gross losses on sales of securities available for sale | (327 | ) | (35 | ) | (84 | ) | |||||||||||||||||||
Total securities gains (losses) | $ | 126 | $ | 1,215 | $ | 1,251 | |||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of loans by type | The following table summarizes the Company's loans by type. | ||||||||||||||||||||||||||||||||
December 31, | December 31, 2013 | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,355,536 | $ | 670,293 | |||||||||||||||||||||||||||||
Commercial and industrial | 468,848 | 230,614 | |||||||||||||||||||||||||||||||
Construction and development | 370,807 | 175,794 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 360,249 | 191,378 | |||||||||||||||||||||||||||||||
Construction and development | 30,061 | 22,520 | |||||||||||||||||||||||||||||||
Home equity | 276,662 | 94,390 | |||||||||||||||||||||||||||||||
Other consumer | 36,874 | 8,332 | |||||||||||||||||||||||||||||||
Gross loans | 2,899,037 | 1,393,321 | |||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Deferred loan fees | (771 | ) | (488 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (7,817 | ) | (7,043 | ) | |||||||||||||||||||||||||||||
Net loans | $ | 2,890,449 | $ | 1,385,790 | |||||||||||||||||||||||||||||
Schedule of obligations due from directors, executive officers and their interests | A summary of contractual obligations due from directors and executive officers, and their related interests, follows. | ||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Loans to directors and officers at beginning of period | $ | 26,437 | $ | 29,999 | $ | 30,910 | |||||||||||||||||||||||||||
Additions for new directors | 5,850 | 1,232 | — | ||||||||||||||||||||||||||||||
Reductions for retirement of directors | (24,835 | ) | (1,816 | ) | — | ||||||||||||||||||||||||||||
New advances to directors and officers | 1,092 | 8 | 1,741 | ||||||||||||||||||||||||||||||
Payoffs and principal reductions | (1,145 | ) | (2,986 | ) | (2,652 | ) | |||||||||||||||||||||||||||
Loans to directors and officers at end of period | $ | 7,398 | $ | 26,437 | $ | 29,999 | |||||||||||||||||||||||||||
Schedule of contractually required payments | The following table relates to acquired Yadkin and ECB PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the respective merger date. | ||||||||||||||||||||||||||||||||
Yadkin Merger July 4, 2014 | ECB Merger April 1, 2013 | ||||||||||||||||||||||||||||||||
Contractually required payments | $ | 110,365 | $ | 61,801 | |||||||||||||||||||||||||||||
Nonaccretable difference | (21,102 | ) | (11,433 | ) | |||||||||||||||||||||||||||||
Cash flows expected to be collected at acquisition | 89,263 | 50,368 | |||||||||||||||||||||||||||||||
Accretable yield | (8,604 | ) | (4,242 | ) | |||||||||||||||||||||||||||||
Fair value of PCI loans at acquisition | $ | 80,659 | $ | 46,126 | |||||||||||||||||||||||||||||
Schedule of changes in accretable yield or income expected to be collected | The following table summarizes changes in accretable yield, or income expected to be collected, related to all of the Company's PCI loans for the periods presented. | ||||||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 25,349 | $ | 27,632 | $ | 29,645 | |||||||||||||||||||||||||||
Loans purchased | 8,604 | 4,242 | — | ||||||||||||||||||||||||||||||
Accretion of income | (13,764 | ) | (13,640 | ) | (15,252 | ) | |||||||||||||||||||||||||||
Reclassifications from nonaccretable difference | 4,091 | 9,595 | 14,031 | ||||||||||||||||||||||||||||||
Other, net | 901 | (2,480 | ) | (792 | ) | ||||||||||||||||||||||||||||
Balance, end of period | $ | 25,181 | $ | 25,349 | $ | 27,632 | |||||||||||||||||||||||||||
Schedule of activity in allowance for loan losses | The following table relates to acquired Yadkin and ECB purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the respective merger date. | ||||||||||||||||||||||||||||||||
Yadkin Merger July 4, 2014 | ECB Merger April 1, 2013 | ||||||||||||||||||||||||||||||||
Contractually required payments | $ | 1,502,793 | $ | 499,963 | |||||||||||||||||||||||||||||
Fair value of acquired loans at acquisition | 1,292,020 | 406,928 | |||||||||||||||||||||||||||||||
Contractual cash flows not expected to be collected | 36,219 | 10,098 | |||||||||||||||||||||||||||||||
Schedule of purchased non-impaired loans | The following tables summarize the activity in the allowance for loan losses for the periods presented. | ||||||||||||||||||||||||||||||||
Commercial | Commercial and Industrial | Commercial Construction | Residential | Consumer Construction | Home Equity | Other Consumer | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 2,419 | $ | 805 | $ | 1,400 | $ | 1,673 | $ | 187 | $ | 476 | $ | 83 | $ | 7,043 | |||||||||||||||||
Charge-offs | (366 | ) | (1,034 | ) | (367 | ) | (591 | ) | — | (429 | ) | (354 | ) | (3,141 | ) | ||||||||||||||||||
Recoveries | 46 | 88 | 69 | 131 | — | 123 | 45 | 502 | |||||||||||||||||||||||||
Provision for loan losses | 697 | 1,415 | 589 | 24 | 7 | 376 | 305 | 3,413 | |||||||||||||||||||||||||
Ending balance | $ | 2,796 | $ | 1,274 | $ | 1,691 | $ | 1,237 | $ | 194 | $ | 546 | $ | 79 | $ | 7,817 | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,524 | $ | 798 | $ | 597 | $ | 940 | $ | 18 | $ | 85 | $ | 36 | $ | 3,998 | |||||||||||||||||
Charge-offs | (20 | ) | (483 | ) | (723 | ) | (672 | ) | — | (558 | ) | (265 | ) | (2,721 | ) | ||||||||||||||||||
Recoveries | 26 | 23 | 47 | 146 | — | 39 | 16 | 297 | |||||||||||||||||||||||||
Provision for loan losses | 889 | 467 | 1,479 | 1,259 | 169 | 910 | 296 | 5,469 | |||||||||||||||||||||||||
Ending balance | $ | 2,419 | $ | 805 | $ | 1,400 | $ | 1,673 | $ | 187 | $ | 476 | $ | 83 | $ | 7,043 | |||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 457 | $ | 197 | $ | 207 | $ | 128 | $ | 28 | $ | 51 | $ | 13 | $ | 1,081 | |||||||||||||||||
Charge-offs | — | (250 | ) | (400 | ) | (341 | ) | (15 | ) | (1,596 | ) | (147 | ) | (2,749 | ) | ||||||||||||||||||
Recoveries | — | 19 | 125 | 153 | — | 6 | 9 | 312 | |||||||||||||||||||||||||
Provision for loan losses | 1,067 | 832 | 665 | 1,000 | 5 | 1,624 | 161 | 5,354 | |||||||||||||||||||||||||
Ending balance | $ | 1,524 | $ | 798 | $ | 597 | $ | 940 | $ | 18 | $ | 85 | $ | 36 | $ | 3,998 | |||||||||||||||||
The following tables summarize the ending allowance for loans losses and the recorded investment in loans by portfolio segment and impairment method. | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Commercial | Commercial and Industrial | Commercial Construction | Residential | Consumer Construction | Home Equity | Other Consumer | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 158 | $ | 229 | $ | — | $ | — | $ | — | $ | 3 | $ | — | $ | 390 | |||||||||||||||||
Collectively evaluated for impairment | 2,177 | 952 | 1,590 | 681 | 194 | 456 | 79 | 6,129 | |||||||||||||||||||||||||
Purchased credit-impaired | 461 | 93 | 101 | 556 | — | 87 | — | 1,298 | |||||||||||||||||||||||||
Total | $ | 2,796 | $ | 1,274 | $ | 1,691 | $ | 1,237 | $ | 194 | $ | 546 | $ | 79 | $ | 7,817 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,398 | $ | 2,343 | $ | 910 | $ | 928 | $ | — | $ | 406 | $ | — | $ | 9,985 | |||||||||||||||||
Collectively evaluated for impairment | 1,227,597 | 452,487 | 337,540 | 328,693 | 28,436 | 271,928 | 36,244 | 2,682,925 | |||||||||||||||||||||||||
Purchased credit-impaired | 122,541 | 14,018 | 32,357 | 30,628 | 1,625 | 4,328 | 630 | 206,127 | |||||||||||||||||||||||||
Total | $ | 1,355,536 | $ | 468,848 | $ | 370,807 | $ | 360,249 | $ | 30,061 | $ | 276,662 | $ | 36,874 | $ | 2,899,037 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Commercial | Commercial and Industrial | Commercial Construction | Residential | Consumer Construction | Home Equity | Other Consumer | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 57 | $ | 323 | $ | — | $ | — | $ | — | $ | 270 | $ | 2 | $ | 652 | |||||||||||||||||
Collectively evaluated for impairment | 1,322 | 482 | 1,139 | 688 | 187 | 153 | 59 | 4,030 | |||||||||||||||||||||||||
Purchased credit-impaired | 1,040 | — | 261 | 985 | — | 53 | 22 | 2,361 | |||||||||||||||||||||||||
Total | $ | 2,419 | $ | 805 | $ | 1,400 | $ | 1,673 | $ | 187 | $ | 476 | $ | 83 | $ | 7,043 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,590 | $ | 343 | $ | 2,609 | $ | 695 | $ | 242 | $ | 424 | $ | 13 | $ | 8,916 | |||||||||||||||||
Collectively evaluated for impairment | 562,081 | 219,251 | 137,911 | 164,106 | 20,447 | 92,592 | 7,982 | 1,204,370 | |||||||||||||||||||||||||
Purchased credit-impaired | 103,622 | 11,020 | 35,274 | 26,577 | 1,831 | 1,374 | 337 | 180,035 | |||||||||||||||||||||||||
Total | $ | 670,293 | $ | 230,614 | $ | 175,794 | $ | 191,378 | $ | 22,520 | $ | 94,390 | $ | 8,332 | $ | 1,393,321 | |||||||||||||||||
Schedule risk category of loans by class of loans | The following tables summarize the risk category of loans by class of loans. | ||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 1,187,938 | $ | 32,142 | $ | 12,915 | $ | — | $ | 1,232,995 | |||||||||||||||||||||||
Commercial and industrial | 433,093 | 15,148 | 6,510 | 79 | 454,830 | ||||||||||||||||||||||||||||
Construction and development | 334,213 | 2,128 | 2,109 | — | 338,450 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 316,743 | 4,527 | 8,351 | — | 329,621 | ||||||||||||||||||||||||||||
Construction and development | 27,447 | 735 | 254 | — | 28,436 | ||||||||||||||||||||||||||||
Home equity | 264,953 | 4,238 | 3,143 | — | 272,334 | ||||||||||||||||||||||||||||
Other consumer | 35,736 | 237 | 269 | 2 | 36,244 | ||||||||||||||||||||||||||||
Total | $ | 2,600,123 | $ | 59,155 | $ | 33,551 | $ | 81 | $ | 2,692,910 | |||||||||||||||||||||||
PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 57,095 | $ | 45,711 | $ | 19,735 | $ | — | $ | 122,541 | |||||||||||||||||||||||
Commercial and industrial | 7,408 | 2,936 | 3,674 | — | 14,018 | ||||||||||||||||||||||||||||
Construction and development | 6,857 | 16,374 | 9,126 | — | 32,357 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 12,703 | 8,206 | 9,719 | — | 30,628 | ||||||||||||||||||||||||||||
Construction and development | 189 | 723 | 713 | — | 1,625 | ||||||||||||||||||||||||||||
Home equity | 143 | 2,827 | 1,358 | — | 4,328 | ||||||||||||||||||||||||||||
Other consumer | 2 | 488 | 140 | — | 630 | ||||||||||||||||||||||||||||
Total | $ | 84,397 | $ | 77,265 | $ | 44,465 | $ | — | $ | 206,127 | |||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 532,669 | $ | 24,245 | $ | 9,757 | $ | — | $ | 566,671 | |||||||||||||||||||||||
Commercial and industrial | 210,382 | 5,195 | 3,993 | 24 | 219,594 | ||||||||||||||||||||||||||||
Construction and development | 134,074 | 3,400 | 2,847 | 199 | 140,520 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 153,123 | 7,812 | 3,866 | — | 164,801 | ||||||||||||||||||||||||||||
Construction and development | 19,566 | 921 | 202 | — | 20,689 | ||||||||||||||||||||||||||||
Home equity | 87,891 | 2,524 | 2,601 | — | 93,016 | ||||||||||||||||||||||||||||
Other consumer | 7,773 | 43 | 179 | — | 7,995 | ||||||||||||||||||||||||||||
Total | $ | 1,145,478 | $ | 44,140 | $ | 23,445 | $ | 223 | $ | 1,213,286 | |||||||||||||||||||||||
PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 53,900 | $ | 35,399 | $ | 14,323 | $ | — | $ | 103,622 | |||||||||||||||||||||||
Commercial and industrial | 7,921 | 2,382 | 669 | 48 | 11,020 | ||||||||||||||||||||||||||||
Construction and development | 9,666 | 17,408 | 7,124 | 1,076 | 35,274 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 13,794 | 7,070 | 5,692 | 21 | 26,577 | ||||||||||||||||||||||||||||
Construction and development | 212 | 510 | 1,109 | — | 1,831 | ||||||||||||||||||||||||||||
Home equity | 28 | 850 | 496 | — | 1,374 | ||||||||||||||||||||||||||||
Other consumer | 21 | 281 | 35 | — | 337 | ||||||||||||||||||||||||||||
Total | $ | 85,542 | $ | 63,900 | $ | 29,448 | $ | 1,145 | $ | 180,035 | |||||||||||||||||||||||
Schedule of past due status of loan portfolio based on contractual terms | The following tables summarize the past due status of non-PCI loans based on contractual terms. | ||||||||||||||||||||||||||||||||
30-89 Days | 90 Days or Greater | Total | Current | Total | |||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 7,971 | $ | 2,383 | $ | 10,354 | $ | 1,222,641 | $ | 1,232,995 | |||||||||||||||||||||||
Commercial and industrial | 5,612 | 1,707 | 7,319 | 447,511 | 454,830 | ||||||||||||||||||||||||||||
Construction and development | 1,162 | 369 | 1,531 | 336,919 | 338,450 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 4,872 | 2,210 | 7,082 | 322,539 | 329,621 | ||||||||||||||||||||||||||||
Construction and development | 569 | 12 | 581 | 27,855 | 28,436 | ||||||||||||||||||||||||||||
Home equity | 3,985 | 395 | 4,380 | 267,954 | 272,334 | ||||||||||||||||||||||||||||
Other consumer | 797 | 70 | 867 | 35,377 | 36,244 | ||||||||||||||||||||||||||||
Total | $ | 24,968 | $ | 7,146 | $ | 32,114 | $ | 2,660,796 | $ | 2,692,910 | |||||||||||||||||||||||
30-89 Days | 90 Days or Greater | Total | Current | Total | |||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Real estate | $ | 2,419 | $ | 2,142 | $ | 4,561 | $ | 562,110 | $ | 566,671 | |||||||||||||||||||||||
Commercial and industrial | 1,945 | 505 | 2,450 | 217,144 | 219,594 | ||||||||||||||||||||||||||||
Construction and development | 146 | 1,316 | 1,462 | 139,058 | 140,520 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 5,097 | 1,365 | 6,462 | 158,339 | 164,801 | ||||||||||||||||||||||||||||
Construction and development | 603 | 237 | 840 | 19,849 | 20,689 | ||||||||||||||||||||||||||||
Home equity | 990 | 701 | 1,691 | 91,325 | 93,016 | ||||||||||||||||||||||||||||
Other Consumer | 245 | 136 | 381 | 7,614 | 7,995 | ||||||||||||||||||||||||||||
Total | $ | 11,445 | $ | 6,402 | $ | 17,847 | $ | 1,195,439 | $ | 1,213,286 | |||||||||||||||||||||||
Schedule of recorded investment of loans on nonaccrual status and loans greater than 90 days past due | The following table summarizes the recorded investment of non-PCI loans on nonaccrual status and loans greater than 90 days past due and accruing by class. | ||||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Nonaccrual | Loans greater than 90 days past due and accruing | Nonaccrual | Loans greater than 90 days past due and accruing | ||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,685 | $ | — | $ | 4,747 | $ | — | |||||||||||||||||||||||||
Commercial and industrial | 4,594 | 2 | 2,154 | — | |||||||||||||||||||||||||||||
Construction and development | 1,692 | — | 2,632 | — | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 3,755 | — | 2,450 | — | |||||||||||||||||||||||||||||
Construction and development | 254 | — | 653 | — | |||||||||||||||||||||||||||||
Home equity | 1,721 | — | 1,928 | — | |||||||||||||||||||||||||||||
Other consumer | 248 | — | 164 | — | |||||||||||||||||||||||||||||
Total | $ | 17,949 | $ | 2 | $ | 14,728 | $ | — | |||||||||||||||||||||||||
Schedule of impairment loans | The following table provides information on impaired loans, which excludes PCI loans and loans evaluated collectively as a homogeneous group. | ||||||||||||||||||||||||||||||||
Recorded Investment With a Recorded Allowance | Recorded Investment With no Recorded Allowance | Total | Related | Unpaid Principal Balance | |||||||||||||||||||||||||||||
Allowance | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 885 | $ | 4,513 | $ | 5,398 | $ | 158 | $ | 5,330 | |||||||||||||||||||||||
Commercial and industrial | 525 | 1,818 | 2,343 | 229 | 2,718 | ||||||||||||||||||||||||||||
Construction and development | — | 910 | 910 | — | 1,971 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | — | 928 | 928 | — | 3,863 | ||||||||||||||||||||||||||||
Home equity | 62 | 344 | 406 | 3 | 1,920 | ||||||||||||||||||||||||||||
Total | $ | 1,472 | $ | 8,513 | $ | 9,985 | $ | 390 | $ | 15,802 | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 732 | $ | 3,858 | $ | 4,590 | $ | 57 | $ | 5,257 | |||||||||||||||||||||||
Commercial and industrial | 323 | 20 | 343 | 323 | 343 | ||||||||||||||||||||||||||||
Construction and development | — | 2,609 | 2,609 | — | 3,042 | ||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | — | 695 | 695 | — | 877 | ||||||||||||||||||||||||||||
Construction and development | — | 242 | 242 | — | 255 | ||||||||||||||||||||||||||||
Home equity | 334 | 90 | 424 | 270 | 442 | ||||||||||||||||||||||||||||
Other consumer | 13 | — | 13 | 2 | 13 | ||||||||||||||||||||||||||||
Total | $ | 1,402 | $ | 7,514 | $ | 8,916 | $ | 652 | $ | 10,229 | |||||||||||||||||||||||
Schedule of impaired financing receivables | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Average Balance | Interest Income | Average Balance | Interest Income | Average Balance | Interest Income | ||||||||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 7,399 | $ | 75 | $ | 2,964 | $ | 22 | $ | 1,076 | $ | — | |||||||||||||||||||||
Commercial and industrial | 2,599 | 1 | 144 | — | — | — | |||||||||||||||||||||||||||
Construction and development | 2,509 | — | 1,282 | — | 137 | — | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Residential real estate | 2,616 | 27 | 1,029 | — | 766 | 4 | |||||||||||||||||||||||||||
Construction and development | 214 | — | 48 | — | — | ||||||||||||||||||||||||||||
Home equity | 998 | — | 1,183 | — | 933 | 4 | |||||||||||||||||||||||||||
Other consumer | 99 | — | 100 | — | 56 | — | |||||||||||||||||||||||||||
Total | $ | 16,434 | $ | 103 | $ | 6,750 | $ | 22 | $ | 2,968 | $ | 8 | |||||||||||||||||||||
Schedule of TDRs on financing receivables | The following table provides the number and recorded investment of TDRs outstanding. | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Recorded Investment | Number | Recorded Investment | Number | ||||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 4,215 | 7 | $ | 815 | 2 | |||||||||||||||||||||||||||
Commercial and industrial | 172 | 4 | 20 | 1 | |||||||||||||||||||||||||||||
Commercial construction | 131 | 2 | 161 | 1 | |||||||||||||||||||||||||||||
Residential real estate | 1,770 | 6 | 133 | 2 | |||||||||||||||||||||||||||||
Home equity | 83 | 2 | 90 | 2 | |||||||||||||||||||||||||||||
Consumer | — | — | 13 | 1 | |||||||||||||||||||||||||||||
Total | $ | 6,371 | 21 | $ | 1,232 | 9 | |||||||||||||||||||||||||||
The following tables provide the number and recorded investment of TDRs modified and defaulted during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
TDRs Modified | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Recorded Investment | Number | Recorded Investment | Number | ||||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||||||
Below market interest rate modifications: | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 3,460 | 4 | $ | 534 | $ | 1 | ||||||||||||||||||||||||||
Commercial and industrial | 105 | 2 | — | — | |||||||||||||||||||||||||||||
Commercial construction | — | — | 161 | 1 | |||||||||||||||||||||||||||||
Residential real estate | 1,658 | 4 | 47 | 1 | |||||||||||||||||||||||||||||
Home equity | — | — | 90 | 2 | |||||||||||||||||||||||||||||
Consumer | — | — | 13 | 1 | |||||||||||||||||||||||||||||
Total | $ | 5,223 | 10 | $ | 845 | $ | 6 | ||||||||||||||||||||||||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | A summary of premises and equipment is presented in the table below. | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Land | $ | 23,171 | $ | 15,386 | ||||
Buildings and leasehold improvements | 43,433 | 25,409 | ||||||
Furniture, software, and equipment | 22,688 | 8,455 | ||||||
Less: accumulated depreciation | (8,913 | ) | (4,375 | ) | ||||
Total | $ | 80,379 | $ | 44,875 | ||||
LOAN_SERVICING_Tables
LOAN SERVICING (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Transfers and Servicing [Abstract] | ||||||||
Schedule of servicing asset | The table below summarizes MSR activity for the periods presented. The Company did not retain mortgage servicing on loans sold prior to the Mergers, thus the table below only includes activity for the last half of 2014. | |||||||
Year ended December 31, 2014 | ||||||||
Balance at beginning of period | $ | — | ||||||
Acquired Yadkin MSRs at fair value | 4,025 | |||||||
Additions | 688 | |||||||
Payoffs | (126 | ) | ||||||
Amortization | (303 | ) | ||||||
Balance at end of period before valuation allowance | 4,284 | |||||||
Valuation allowance | (157 | ) | ||||||
Balance at end of period after valuation allowance | $ | 4,127 | ||||||
The table below summarizes the activity in the SBA-guaranteed loan servicing asset for the periods presented. | ||||||||
Year ended December 31, | ||||||||
2014 | 2013 | |||||||
Balance at beginning of period | $ | 1,759 | $ | 976 | ||||
Additions | 1,628 | 995 | ||||||
Amortization | (306 | ) | (212 | ) | ||||
Balance at end of period | $ | 3,081 | $ | 1,759 | ||||
The characteristics and sensitivity of the fair value of MSRs to changes in key assumptions is included in the accompanying table. | ||||||||
December 31, 2014 | ||||||||
Composition of mortgage loans serviced for others: | ||||||||
Fixed rate loans | 99.86 | % | ||||||
Adjustable rate loans | 0.14 | % | ||||||
Total | 100 | % | ||||||
Weighted average life (years) | 5.77 | |||||||
Prepayment speed | 12.62 | % | ||||||
Discount rate | 9.6 | % | ||||||
Effect on fair value due to change in interest rates: | ||||||||
0.25% | $ | 566 | ||||||
0.50% | 801 | |||||||
-0.25% | (668 | ) | ||||||
-0.50% | (844 | ) |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of Intangible Assets and Goodwill | The table below summarizes the changes in carrying amounts of goodwill and other intangibles (core deposit intangibles) for the periods presented. | |||||||||||||||
Core Deposit Intangible | ||||||||||||||||
Goodwill | Gross | Accumulated | Net | |||||||||||||
Amortization | ||||||||||||||||
Balance at January 1, 2012 | $ | 26,254 | $ | 3,128 | $ | (304 | ) | $ | 2,824 | |||||||
Amortization expense | — | — | (448 | ) | (448 | ) | ||||||||||
Balance at December 31, 2012 | 26,254 | 3,128 | (752 | ) | 2,376 | |||||||||||
Core deposit intangible resulting from the ECB Merger | — | 4,307 | — | 4,307 | ||||||||||||
Amortization expense | — | — | (800 | ) | (800 | ) | ||||||||||
Balance at December 31, 2013 | 26,254 | 7,435 | (1,552 | ) | 5,883 | |||||||||||
Goodwill and core deposit intangible resulting from the Mergers | 124,829 | 12,951 | — | 12,951 | ||||||||||||
Amortization expense | — | — | (2,157 | ) | (2,157 | ) | ||||||||||
Balance at December 31, 2014 | $ | 151,083 | $ | 20,386 | $ | (3,709 | ) | $ | 16,677 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The table below presents estimated amortization expense for the Company's other intangible assets. | |||||||||||||||
2015 | $ | 3,098 | ||||||||||||||
2016 | 2,775 | |||||||||||||||
2017 | 2,485 | |||||||||||||||
2018 | 2,202 | |||||||||||||||
2019 | 1,915 | |||||||||||||||
Thereafter | 4,202 | |||||||||||||||
$ | 16,677 | |||||||||||||||
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Schedule of Short-term and Long-term Borrowings | A summary of short-term borrowings and long-term debt is presented below. | ||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Short-term borrowings: | |||||||||||||
FHLB advances maturing within one year | $ | 250,500 | $ | 126,500 | |||||||||
Long-term debt: | |||||||||||||
FHLB advances maturing beyond one year | $ | 104,651 | $ | 19,299 | |||||||||
Subordinated term loan due 2018 | 7,060 | 6,961 | |||||||||||
Subordinated notes due 2023 | 38,050 | 38,050 | |||||||||||
Junior subordinated debt to unconsolidated trusts: | |||||||||||||
Maturing October 7, 2033 | 5,629 | 5,560 | |||||||||||
Maturing December 15, 2033 | 6,687 | — | |||||||||||
Maturing December 15, 2037 | 12,115 | — | |||||||||||
Capital lease obligations and other debt | 5,972 | 3,051 | |||||||||||
Total long-term debt | $ | 180,164 | $ | 72,921 | |||||||||
Schedule of Federal Home Loan Bank, Advances | Below is a summary of the contractual balances outstanding on FHLB advances. | ||||||||||||
Maturity Date | Contractual Rate | Rate Type | December 31, 2014 | December 31, 2013 | |||||||||
January 7, 2014 | 0.20% | Fixed rate credit | $ | — | $ | 20,000 | |||||||
January 22, 2014 | 0.18 | Fixed rate credit | — | 18,000 | |||||||||
February 5, 2014 | 0.21 | Fixed rate credit | — | 25,000 | |||||||||
March 5, 2014 | 0.25 | Fixed rate credit | — | 25,000 | |||||||||
April 4, 2014 | 0.23 | Fixed rate credit | — | 25,000 | |||||||||
August 4, 2014 | 1.11 | Fixed rate credit | — | 1,500 | |||||||||
August 18, 2014 | 1.49 | Fixed rate credit | — | 3,000 | |||||||||
August 20, 2014 | 1.48 | Fixed rate credit | — | 3,000 | |||||||||
October 28, 2014 | 0.91 | Fixed rate credit | — | 2,000 | |||||||||
December 16, 2014 | 0.87 | Fixed rate credit | — | 4,000 | |||||||||
January 2, 2015 | 0.25 | Fixed rate credit | 20,000 | — | |||||||||
January 5, 2015 | 0.2 | Fixed rate credit | 25,000 | — | |||||||||
January 12, 2015 | 2.99 | Fixed rate credit | 5,000 | — | |||||||||
February 5, 2015 | 0.22 | Fixed rate credit | 25,000 | — | |||||||||
February 26, 2015 | 0.428 | Fixed rate credit | 3,000 | 3,000 | |||||||||
March 2, 2015 | 0.244 | Fixed rate credit | 15,000 | — | |||||||||
March 5, 2015 | 0.24 | Fixed rate credit | 25,000 | — | |||||||||
April 27, 2015 | 2.97 | Fixed rate credit | 5,000 | — | |||||||||
April 30, 2015 | 0.28 | Fixed rate credit | 25,000 | — | |||||||||
June 26, 2015 | 0.26 | Fixed rate credit | 10,000 | — | |||||||||
July 15, 2015 | 0.305 | Fixed rate credit | 20,000 | — | |||||||||
August 5, 2015 | 0.309 | Fixed rate credit | 15,000 | — | |||||||||
August 5, 2015 | 0.301 | Fixed rate credit | 10,000 | — | |||||||||
August 17, 2015 | 1.85 | Fixed rate credit | 4,500 | 4,500 | |||||||||
August 20, 2015 | 1.83 | Fixed rate credit | 3,000 | 3,000 | |||||||||
October 1, 2015 | 0.35 | Fixed rate credit | 10,000 | — | |||||||||
November 16, 2015 | 0.41 | Fixed rate credit | 10,000 | — | |||||||||
December 1, 2015 | 0.428 | Fixed rate credit | 20,000 | — | |||||||||
January 4, 2016 | 0.503 | Fixed rate credit | 15,000 | — | |||||||||
February 5, 2016 | 0.569 | Fixed rate credit | 25,000 | — | |||||||||
February 16, 2016 | 0.48 | Fixed rate credit | 10,000 | — | |||||||||
February 26, 2016 | 0.611 | Fixed rate hybrid | 3,000 | 3,000 | |||||||||
April 1, 2016 | 0.513 | Fixed rate credit | 15,000 | — | |||||||||
July 1, 2016 | 0.7 | Fixed rate credit | 20,000 | — | |||||||||
August 17, 2016 | 2.21 | Fixed rate credit | 2,500 | 2,500 | |||||||||
February 27, 2017 | 0.817 | Fixed rate hybrid | 3,000 | 3,000 | |||||||||
October 16, 2017 | 1.14 | Fixed rate credit | 5,000 | — | |||||||||
October 29, 2018 | 0.25 | Principal reducing credit | 667 | — | |||||||||
October 15, 2019 | 1.83 | Fixed rate credit | 5,000 | — | |||||||||
December 19, 2023 | 2 | Principal reducing credit | 207 | — | |||||||||
Totals | $ | 354,874 | $ | 145,500 | |||||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deposits [Abstract] | ||||||||||||
Scheduled Maturities of Certificates of Deposit | The scheduled maturities of time deposits as of December 31, 2014 are presented below. | |||||||||||
Less Than $250 | $250 and Greater | Total | ||||||||||
2015 | $ | 442,296 | $ | 152,763 | $ | 595,059 | ||||||
2016 | 130,563 | 57,967 | 188,530 | |||||||||
2017 | 64,095 | 38,355 | 102,450 | |||||||||
2018 | 38,747 | 35,913 | 74,660 | |||||||||
2019 | 91,240 | 40,340 | 131,580 | |||||||||
Thereafter | 4 | — | 4 | |||||||||
Total | $ | 766,945 | $ | 325,338 | $ | 1,092,283 | ||||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases [Abstract] | ||||
Future Minimum Lease Payments Under Non-Cancelable Operating Leases | Future minimum lease payments under these leases for the years ending December 31 are presented below. | |||
2015 | $ | 4,066 | ||
2016 | 3,573 | |||
2017 | 3,103 | |||
2018 | 2,925 | |||
2019 | 2,114 | |||
Thereafter | 5,354 | |||
Total | $ | 21,135 | ||
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under the capital leases are presented below. | |||
2015 | $ | 564 | ||
2016 | 571 | |||
2017 | 580 | |||
2018 | 588 | |||
2019 | 598 | |||
Thereafter | 6,623 | |||
Total projected lease payments for capital leases | 9,524 | |||
Imputed interest | (3,552 | ) | ||
Present value of minimum lease payments | $ | 5,972 | ||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The table below summarizes significant components of income tax expense (benefit) for the periods presented. | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense: | ||||||||||||
Federal | $ | 305 | $ | — | $ | 69 | ||||||
State | — | — | — | |||||||||
Total current tax expense | 305 | — | 69 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | 7,924 | 432 | (1,163 | ) | ||||||||
State | 1,981 | 2,042 | (253 | ) | ||||||||
Total deferred tax expense (benefit) | 9,905 | 2,474 | (1,416 | ) | ||||||||
Income tax expense (benefit) before change in deferred tax asset valuation allowance | 10,210 | 2,474 | (1,347 | ) | ||||||||
Change in deferred tax asset valuation allowance | (4,797 | ) | (460 | ) | (1,869 | ) | ||||||
Income tax expense (benefit) | $ | 5,413 | $ | 2,014 | $ | (3,216 | ) | |||||
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense (benefit) is reconciled to the amount computed by applying the statutory federal income tax rate of 35 percent to net income before income taxes as follows. | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax computed at statutory rate of 35% | $ | 9,491 | $ | 2,815 | $ | (815 | ) | |||||
Effect of state income taxes | 1,287 | 1,348 | 11 | |||||||||
Change in income tax rates | (1,899 | ) | 1,544 | — | ||||||||
Gain on acquisition | — | (2,643 | ) | — | ||||||||
Non-taxable interest income | (437 | ) | (79 | ) | (189 | ) | ||||||
Non-taxable bank-owned life insurance | (549 | ) | (348 | ) | (247 | ) | ||||||
Non-deductible merger costs | 1,006 | 309 | 488 | |||||||||
Write-off of acquired net operating losses subject to Section 382 limitation | 652 | — | — | |||||||||
Change in deferred tax asset valuation allowance | (4,797 | ) | (460 | ) | (1,869 | ) | ||||||
Other | 659 | (472 | ) | (595 | ) | |||||||
$ | 5,413 | $ | 2,014 | $ | (3,216 | ) | ||||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred taxes are summarized below. | |||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforward | $ | 40,073 | $ | 32,734 | ||||||||
Recognized built-in loss carryforward | 7,580 | 6,570 | ||||||||||
Acquisition accounting fair value adjustments | 12,229 | 12,330 | ||||||||||
Allowance for loan losses | 2,990 | 2,499 | ||||||||||
Federal tax credits carryforward | 3,140 | 1,282 | ||||||||||
Unrealized losses on securities | 667 | 4,109 | ||||||||||
Unrealized losses on cash flow hedges | 728 | — | ||||||||||
Stock-based compensation | 2,094 | 1,808 | ||||||||||
Capitalized leases | 1,167 | — | ||||||||||
Deferred compensation | 3,024 | 117 | ||||||||||
Other | 2,942 | 497 | ||||||||||
Total deferred tax assets | 76,634 | 61,946 | ||||||||||
Valuation allowance | (1,185 | ) | (5,130 | ) | ||||||||
Net deferred tax assets | 75,449 | 56,816 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Unrealized gains on cash flow hedges | — | 1,490 | ||||||||||
Premises and equipment | 2,568 | 203 | ||||||||||
Prepaid expenses | 478 | 256 | ||||||||||
Total deferred tax liabilities | 3,046 | 1,949 | ||||||||||
Net deferred tax asset | $ | 72,403 | $ | 54,867 | ||||||||
REGULATORY_MATTERS_Table
REGULATORY MATTERS (Table) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The holding company and bank capital amounts and ratios are presented in the table below. The 2013 capital amounts and ratios represent those of Piedmont and VantageSouth Bank, which were the accounting predecessors to Yadkin and the Bank. | ||||||||||||||||||||
Actual | Minimum for capital adequacy purposes | Minimum to be well capitalized under prompt corrective action provisions | |||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Yadkin Financial Corporation: | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 425,720 | 12.34 | % | $ | 276,064 | 8 | % | N/A | N/A | |||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 375,095 | 10.87 | % | $ | 138,032 | 4 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to Average Assets) | 375,095 | 9.33 | % | $ | 160,773 | 4 | % | N/A | N/A | ||||||||||||
Yadkin Bank: | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 419,875 | 12.18 | % | $ | 275,674 | 8 | % | $ | 344,592 | 10 | % | |||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 407,300 | 11.82 | % | 137,837 | 4 | % | 206,755 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets) | 407,300 | 10.13 | % | 160,812 | 4 | % | 201,015 | 5 | % | ||||||||||||
31-Dec-13 | |||||||||||||||||||||
Piedmont Community Bank Holdings, Inc.: | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 225,995 | 13.21 | % | $ | 136,834 | 8 | % | N/A | N/A | |||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 173,495 | 10.14 | % | 68,417 | 4 | % | N/A | N/A | |||||||||||||
Tier 1 Capital (to Average Assets) | 173,495 | 8.7 | % | 79,747 | 4 | % | N/A | N/A | |||||||||||||
VantageSouth Bank: | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 216,650 | 12.7 | % | $ | 136,486 | 8 | % | $ | 170,608 | 10 | % | |||||||||
Tier 1 Capital (to Risk-Weighted Assets) | 202,200 | 11.85 | % | 68,243 | 4 | % | 102,365 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets) | 202,200 | 10.16 | % | 79,620 | 4 | % | 99,525 | 5 | % | ||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Schedule of key terms of each swap | The following table summarizes key terms of each interest rate cap. | ||||||||||||||||||
Interest Rate Cap | Notional Amount | Effective Start Date | Maturity Date | Strike Rate | Underlying Index of Cap | Variable Rate on Underlying Debt | |||||||||||||
Cap 1 | $ | 7,500 | July 1, 2012 | July 1, 2017 | 0.47 | % | 3-Month LIBOR | 3-Month LIBOR + 4.00% | |||||||||||
Cap 2 | 8,000 | July 7, 2012 | July 7, 2017 | 0.47 | 3-Month LIBOR | 3-Month LIBOR + 3.10% | |||||||||||||
Cap 3 | 25,000 | September 15, 2014 | September 15, 2019 | 1.82 | 3-Month LIBOR | 3-Month LIBOR + 1.32% | |||||||||||||
Cap 4 | 10,000 | September 30, 2014 | September 30, 2019 | 1.85 | 3-Month LIBOR | 3-Month LIBOR + 2.80% | |||||||||||||
$ | 50,500 | ||||||||||||||||||
The following table summarizes key terms of each interest rate swap. | |||||||||||||||||||
Interest Rate Swap | Notional Amount | Effective Start Date | Maturity Date | Pay Fixed Rate | Receive Floating Rate | ||||||||||||||
Swap 1 | $ | 25,000 | April 6, 2015 | April 5, 2020 | 1.65 | % | 3-Month LIBOR | ||||||||||||
Swap 2 | 25,000 | May 5, 2015 | May 5, 2020 | 1.683 | 3-Month LIBOR | ||||||||||||||
Swap 3 | 25,000 | June 5, 2015 | June 5, 2020 | 1.72 | 3-Month LIBOR | ||||||||||||||
Swap 4 | 25,000 | August 5, 2015 | August 5, 2020 | 2.44 | 3-Month LIBOR | ||||||||||||||
Swap 5 | 25,000 | February 5, 2016 | February 5, 2021 | 2.703 | 3-Month LIBOR | ||||||||||||||
Swap 6 | 50,000 | August 5, 2016 | August 5, 2021 | 2.882 | 3-Month LIBOR | ||||||||||||||
Swap 7 | 25,000 | October 1, 2014 | August 31, 2017 | 1.197 | 1-Month LIBOR + 0.10% | ||||||||||||||
Swap 8 | 25,000 | October 16, 2014 | August 16, 2018 | 1.596 | 1-Month LIBOR + 0.13% | ||||||||||||||
$ | 225,000 | ||||||||||||||||||
Schedule of balance sheet location and fair value amounts of derivative instruments | The following table summarizes the balance sheet location and fair value amounts of derivative instruments grouped by the underlying hedged instrument. | ||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||
Balance Sheet | Notional | Fair Value | Notional Amount | Fair Value | |||||||||||||||
Location | Amount | ||||||||||||||||||
FHLB advances: | |||||||||||||||||||
Interest rate swaps | Other assets | $ | 75,000 | $ | 795 | $ | 75,000 | $ | 3,962 | ||||||||||
Interest rate swaps | Other liabilities | 100,000 | 2,249 | — | — | ||||||||||||||
Brokered money market deposits: | |||||||||||||||||||
Interest rate swaps | Other liabilities | 50,000 | 200 | — | — | ||||||||||||||
Subordinated term loan: | |||||||||||||||||||
Interest rate cap | Other assets | 7,500 | 128 | 7,500 | 193 | ||||||||||||||
TRUPs: | |||||||||||||||||||
Interest rate caps | Other assets | 43,000 | 1,104 | 8,000 | 208 | ||||||||||||||
Mortgage loan commitments: | |||||||||||||||||||
Interest rate lock commitments | Other assets | 23,274 | 342 | 17,654 | 354 | ||||||||||||||
Forward sale commitments | Other liabilities | 34,727 | 49 | — | — | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Schedule of contractual amount of off-balance sheet commitments | The following table is a summary of the contractual amount of the Company’s exposure to off-balance sheet commitments. | |||||||
December 31, | December 31, 2013 | |||||||
2014 | ||||||||
Lending commitments: | ||||||||
Commitments to extend credit | $ | 658,925 | $ | 293,371 | ||||
Financial standby letters of credit | 12,421 | 8,571 | ||||||
Other commitments: | ||||||||
Standby letters of credit issued by the FHLB on the Bank's behalf | $ | 10,000 | $ | 10,000 | ||||
Capital commitments to private investment funds | 2,280 | 1,744 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Components of change in fair value of level 3 available for sale securities | The following table provides the components of the change in fair value of Level 3 available for sale securities for the periods presented. | ||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Level 3 AFS securities at beginning of period | $ | 7,583 | $ | — | $ | — | |||||||||||||||
Purchases | 4,600 | 7,505 | — | ||||||||||||||||||
Sales, calls or maturities | (1,000 | ) | — | — | |||||||||||||||||
Changes in unrealized gains and losses | 107 | 78 | — | ||||||||||||||||||
Level 3 AFS securities at end of period | $ | 11,290 | $ | 7,583 | $ | — | |||||||||||||||
Schedule of changes in fair value of interest rate lock commitments | The following table provides the components of the change in fair value of interest rate lock commitments for the periods presented. | ||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Interest rate lock commitments at beginning of period | $ | 354 | $ | 795 | $ | 212 | |||||||||||||||
Fair value of acquired Yadkin interest rate lock commitments | 231 | — | — | ||||||||||||||||||
Issuances | 2,366 | 2,909 | 2,600 | ||||||||||||||||||
Settlements | (2,609 | ) | (3,350 | ) | (2,017 | ) | |||||||||||||||
Interest rate lock commitments at end of period | $ | 342 | $ | 354 | $ | 795 | |||||||||||||||
Fair value and measurement level of assets and liabilities | The following tables summarize fair value information for assets and liabilities measured on a recurring and nonrecurring basis. | ||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Measured at fair value on a recurring basis: | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
GSE obligations | $ | 14,944 | $ | — | $ | 14,944 | $ | — | |||||||||||||
SBA-guaranteed securities | 60,120 | 60,120 | — | — | |||||||||||||||||
Mortgage-backed securities issued by GSE | 425,283 | — | 425,283 | — | |||||||||||||||||
Corporate bonds | 119,912 | 2,545 | 106,077 | 11,290 | |||||||||||||||||
Non-agency RMBS | 4,963 | — | 4,963 | — | |||||||||||||||||
Non-agency CMBS | 3,578 | — | 3,578 | — | |||||||||||||||||
Municipal bonds | 40,258 | — | 40,258 | — | |||||||||||||||||
Other debt securities | 498 | 498 | — | — | |||||||||||||||||
Equity securities | 2,865 | 2,865 | — | — | |||||||||||||||||
SBA-guaranteed loans held for sale | 8,365 | — | 8,365 | — | |||||||||||||||||
SBA loans held for investment | 8,906 | — | 8,906 | — | |||||||||||||||||
Derivative assets | 2,368 | — | 2,027 | 342 | |||||||||||||||||
Derivative liabilities | 2,497 | — | 2,497 | — | |||||||||||||||||
Measured at fair value on a nonrecurring basis: | |||||||||||||||||||||
Impaired loans | $ | 9,595 | $ | — | $ | — | $ | 9,595 | |||||||||||||
Foreclosed assets | 12,891 | — | — | 12,891 | |||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Measured at fair value on a recurring basis: | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
GSE obligations | $ | 14,673 | $ | — | $ | 14,673 | $ | — | |||||||||||||
SBA-guaranteed securities | 65,880 | 65,880 | — | — | |||||||||||||||||
Mortgage-backed securities issued by GSE | 205,260 | — | 205,260 | — | |||||||||||||||||
Corporate bonds | 110,740 | — | 103,157 | 7,583 | |||||||||||||||||
Non-agency CMBS | 5,938 | — | 5,938 | — | |||||||||||||||||
Municipal bonds | 601 | — | 601 | — | |||||||||||||||||
Other debt securities | 253 | 253 | — | — | |||||||||||||||||
Equity securities | 1,043 | 1,043 | — | — | |||||||||||||||||
Derivative assets | 4,717 | — | 4,363 | 354 | |||||||||||||||||
Measured at fair value on a non-recurring basis: | |||||||||||||||||||||
Mortgage servicing rights | $ | 4,127 | $ | — | $ | — | $ | 4,127 | |||||||||||||
Impaired loans | 8,264 | — | — | 8,264 | |||||||||||||||||
Foreclosed assets | 10,823 | — | — | 10,823 | |||||||||||||||||
Quantitative Information about level 3 fair value measurements | The table below outlines the valuation techniques, unobservable inputs, and the range of quantitative inputs used in the valuations. | ||||||||||||||||||||
Valuation Technique | Unobservable Input | Range | Fair Value as of | Fair Value as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Recurring measurements: | |||||||||||||||||||||
Investment securities | Pricing model | Illiquidity or credit factor in discount rates | 1-2% | $ | 11,290 | $ | 7,583 | ||||||||||||||
Interest rate lock commitments | Pricing model | Pull through rates | 80-95% | $ | 342 | $ | 354 | ||||||||||||||
Nonrecurring measurements: | |||||||||||||||||||||
Impaired loans | Discounted appraisals | Collateral discounts | 15-50% | $ | 9,595 | ||||||||||||||||
Discounted expected cash flows | Expected loss rates | 0-75% | $ | 8,264 | |||||||||||||||||
Discount rates | 2-8% | ||||||||||||||||||||
Foreclosed assets | Discounted appraisals | Collateral discounts | 15-50% | $ | 12,891 | $ | 10,823 | ||||||||||||||
Schedule of carrying amounts and estimated fair values of financial instruments | The following tables summarize the carrying amounts and estimated fair values of the Company's financial instruments. | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 132,365 | $ | 132,365 | $ | 132,365 | $ | — | $ | — | |||||||||||
Investment securities available for sale | 672,421 | 672,421 | 66,028 | 595,103 | 11,290 | ||||||||||||||||
Investment securities held to maturity | 39,620 | 40,404 | — | 40,404 | — | ||||||||||||||||
Loans held for sale | 20,205 | 20,205 | — | 20,205 | — | ||||||||||||||||
Loans, net | 2,890,449 | 2,919,573 | — | 1,241 | 2,918,332 | ||||||||||||||||
Federal Home Loan Bank stock | 19,499 | 19,499 | — | 19,499 | — | ||||||||||||||||
Bank-owned life insurance | 76,990 | 76,990 | — | 76,990 | — | ||||||||||||||||
Derivative assets | 2,368 | 2,368 | — | 2,027 | 342 | ||||||||||||||||
Purchased accounts receivable | 44,821 | 44,821 | — | 44,821 | — | ||||||||||||||||
Accrued interest receivable | 12,071 | 12,071 | — | 12,071 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 3,247,364 | 3,245,431 | — | 3,245,431 | — | ||||||||||||||||
Short-term borrowings | 250,500 | 250,500 | — | — | 250,500 | ||||||||||||||||
Long-term debt | 180,164 | 183,326 | — | — | 183,326 | ||||||||||||||||
Derivative liabilities | 2,497 | 2,497 | — | 2,497 | — | ||||||||||||||||
Accrued interest payable | 2,688 | 2,688 | — | 2,688 | — | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Carrying | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 100,780 | $ | 100,780 | $ | 100,780 | $ | — | $ | — | |||||||||||
Investment securities available for sale | 404,388 | 404,388 | 67,176 | 329,629 | 7,583 | ||||||||||||||||
Investment securities held to maturity | 500 | 500 | — | — | 500 | ||||||||||||||||
Loans held for sale | 8,663 | 8,663 | — | 8,663 | — | ||||||||||||||||
Loans, net | 1,385,790 | 1,380,437 | — | — | 1,380,437 | ||||||||||||||||
Federal Home Loan Bank stock | 8,929 | 8,929 | — | 8,929 | — | ||||||||||||||||
Bank-owned life insurance | 33,148 | 33,148 | — | 33,148 | — | ||||||||||||||||
Derivative assets | 4,717 | 4,717 | — | 4,363 | 354 | ||||||||||||||||
Purchased accounts receivable | 18,725 | 18,725 | — | 18,725 | — | ||||||||||||||||
Accrued interest receivable | 5,356 | 5,356 | — | 5,356 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 1,672,231 | 1,674,175 | — | 1,674,175 | — | ||||||||||||||||
Short-term borrowings | 126,500 | 126,726 | — | — | 126,726 | ||||||||||||||||
Long-term debt | 72,921 | 72,397 | — | — | 72,397 | ||||||||||||||||
Accrued interest payable | 1,817 | 1,817 | — | 1,817 | — | ||||||||||||||||
EMPLOYEE_AND_DIRECTOR_BENEFIT_1
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Table) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the year ended December 31, 2014 is presented below. | |||||||||||||
Outstanding Options | Exercisable Options | |||||||||||||
Number | Weighted | Number | Weighted | |||||||||||
Average | Average | |||||||||||||
Option | Option | |||||||||||||
Price | Price | |||||||||||||
Options outstanding at January 1, 2014 | 46,744 | $ | 17.79 | 46,744 | $ | 17.79 | ||||||||
Granted | — | — | — | — | ||||||||||
Yadkin options assumed in Mergers | 50,693 | 31.03 | 50,693 | 31.03 | ||||||||||
Exercised | 11,353 | 12.56 | 11,353 | 12.56 | ||||||||||
Expired | 3,360 | 15.94 | 3,360 | 15.94 | ||||||||||
Forfeited | 4,257 | 32.01 | 4,257 | 32.01 | ||||||||||
Options outstanding at December 31, 2014 | 78,467 | $ | 31.06 | 78,467 | $ | 31.06 | ||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The table below provides the range of exercise prices for options outstanding and exercisable as of December 31, 2014. | |||||||||||||
Range of Exercise Prices | Stock Options | Stock Options | ||||||||||||
Outstanding | Exercisable | |||||||||||||
$9.12 - $10.00 | 1,722 | 1,722 | ||||||||||||
$10.01 - $20.00 | 28,208 | 28,208 | ||||||||||||
$20.01 - $30.00 | 4,085 | 4,085 | ||||||||||||
$30.01 - $40.00 | 9,717 | 9,717 | ||||||||||||
$40.01 - $50.00 | 33,902 | 33,902 | ||||||||||||
$50.01 - $57.21 | 833 | 833 | ||||||||||||
78,467 | 78,467 | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of non-vested restricted stock award activity is included below for the periods presented. | |||||||||||||
Shares | Weighted | |||||||||||||
Average Grant | ||||||||||||||
Date Fair Value | ||||||||||||||
Non-vested at January 1, 2014 | 1,250 | $ | 12.51 | |||||||||||
Granted | — | — | ||||||||||||
Yadkin restricted stock assumed in Mergers | 173,266 | 6.95 | ||||||||||||
Vested | 172,900 | 6.95 | ||||||||||||
Forfeited | 680 | 12.51 | ||||||||||||
Non-vested at December 31, 2014 | 936 | $ | 10.68 | |||||||||||
CHANGES_IN_ACCUMULATED_OTHER_C1
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Schedule of accumulated other comprehensive income (loss) | The table below summarizes the activity in AOCI for the periods presented. All amounts are net of tax. | |||||||||||
Unrealized Net Gains (Losses) on AFS Securities | Unrealized Net Gains (Losses) on Cash Flow Hedges | Total | ||||||||||
Balance at January 1, 2014 | $ | (6,554 | ) | $ | 2,381 | $ | (4,173 | ) | ||||
Other comprehensive income (loss) before reclassifications | 5,445 | (3,440 | ) | 2,005 | ||||||||
Amounts reclassified for securities gains | (76 | ) | — | (76 | ) | |||||||
Net change in AOCI | 5,369 | (3,440 | ) | 1,929 | ||||||||
Balance at December 31, 2014 | $ | (1,185 | ) | $ | (1,059 | ) | $ | (2,244 | ) | |||
Balance at January 1, 2013 | $ | 2,085 | $ | (267 | ) | $ | 1,818 | |||||
Other comprehensive income (loss) before reclassifications | (7,892 | ) | 2,648 | (5,244 | ) | |||||||
Amounts reclassified for securities gains | (747 | ) | — | (747 | ) | |||||||
Net change in AOCI | (8,639 | ) | 2,648 | (5,991 | ) | |||||||
Balance before non-controlling interests at December 31, 2013 | (6,554 | ) | 2,381 | (4,173 | ) | |||||||
Non-controlling interests | (2,197 | ) | 749 | (1,448 | ) | |||||||
Balance after non-controlling interests at December 31, 2013 | $ | (4,357 | ) | $ | 1,632 | $ | (2,725 | ) | ||||
Balance at January 1, 2012 | $ | 280 | $ | — | $ | 280 | ||||||
Other comprehensive income (loss) before reclassifications | 1,805 | (267 | ) | 1,538 | ||||||||
Amounts reclassified for securities gains | — | — | — | |||||||||
Net change in AOCI | 1,805 | (267 | ) | 1,538 | ||||||||
Balance before non-controlling interests at December 31, 2012 | 2,085 | (267 | ) | 1,818 | ||||||||
Non-controlling interests | 351 | (135 | ) | 216 | ||||||||
Balance after non-controlling interests at December 31, 2012 | $ | 1,734 | $ | (132 | ) | $ | 1,602 | |||||
Schedule of amounts reclassified from accumulated other comprehensive income | Amounts reclassified from AOCI are included in the consolidated statements of operations as follows. | |||||||||||
AOCI Component | Amount Reclassified | Line Item Within Statement of Operations | ||||||||||
2014 | 2013 | |||||||||||
AFS securities: | ||||||||||||
Gross reclassification | $ | (126 | ) | $ | (1,215 | ) | Gain on sales of available for sale securities | |||||
Income tax expense | 50 | 468 | Income tax expense (benefit) | |||||||||
Reclassification, net of tax | $ | (76 | ) | $ | (747 | ) |
PARENT_COMPANY_FINANCIAL_DATA_
PARENT COMPANY FINANCIAL DATA (Table) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Parent Company Condensed Balance Sheet | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Cash and due from banks | $ | 2,825 | $ | 631 | ||||||||
Investment securities available for sale | 1,069 | — | ||||||||||
Investment in subsidiaries | 615,570 | 140,233 | ||||||||||
Deferred tax asset, net | 650 | — | ||||||||||
Other assets | 2,286 | 19 | ||||||||||
Total assets | $ | 622,400 | $ | 140,883 | ||||||||
Liabilities and Shareholders' Equity: | ||||||||||||
Long-term debt | $ | 62,481 | $ | — | ||||||||
Accrued interest payable and other liabilities | 2,117 | 83 | ||||||||||
Total liabilities | 64,598 | 83 | ||||||||||
Total shareholders' equity before non-controlling interests | 557,802 | 140,800 | ||||||||||
Total liabilities and shareholders' equity | $ | 622,400 | $ | 140,883 | ||||||||
Parent Company Condensed Statement of Operations | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income: | ||||||||||||
Dividends from subsidiaries | $ | 8,058 | $ | — | $ | — | ||||||
Other income | 54 | — | — | |||||||||
Total income | 8,112 | — | — | |||||||||
Expense: | ||||||||||||
Interest expense | 2,331 | — | — | |||||||||
Other expenses | 837 | 1,247 | 3,939 | |||||||||
Total expenses | 3,168 | 1,247 | 3,939 | |||||||||
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries | 4,944 | (1,247 | ) | (3,939 | ) | |||||||
Income tax benefit | 5,647 | — | — | |||||||||
Income (loss) before equity in undistributed earnings of subsidiaries | 10,591 | (1,247 | ) | (3,939 | ) | |||||||
Equity in undistributed earnings of subsidiaries | 11,114 | 7,120 | 4,727 | |||||||||
Net income | 21,705 | 5,873 | 788 | |||||||||
Dividends on preferred stock | 1,269 | — | — | |||||||||
Net income attributable to non-controlling interests | 2,466 | 3,470 | 1,935 | |||||||||
Net income available to common shareholders | $ | 17,970 | $ | 2,403 | $ | (1,147 | ) | |||||
Parent Company Condensed Statement of Cash Flows | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 21,705 | $ | 5,873 | $ | 788 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Deferred income taxes | (5,647 | ) | — | — | ||||||||
Equity in undistributed earnings of subsidiaries | (11,114 | ) | (7,120 | ) | (4,727 | ) | ||||||
Net change in other assets | 258 | 346 | (343 | ) | ||||||||
Net change in interest payable and other liabilities | (281 | ) | (801 | ) | 398 | |||||||
Other, net | 419 | 280 | 1,412 | |||||||||
Net cash provided by (used) in operating activities | 5,340 | (1,422 | ) | (2,472 | ) | |||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from sales of investment securities available for sale | 13 | — | — | |||||||||
Purchases of cash flow hedges | (1,278 | ) | — | — | ||||||||
Investment in subsidiaries | (323 | ) | — | (9,905 | ) | |||||||
Proceeds from repayment of investment in subsidiaries | 6,014 | 2,000 | — | |||||||||
Proceeds from sale of fixed assets to subsidiary | — | — | 300 | |||||||||
Net cash from business combinations | 4,388 | — | — | |||||||||
Net cash provided by (used in) investing activities | 8,814 | 2,000 | (9,605 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of stock options | 5 | — | — | |||||||||
Repurchase of common stock | (886 | ) | — | — | ||||||||
Distribution to legacy shareholders of Piedmont Community Bank Holdings, Inc. | (9,810 | ) | — | — | ||||||||
Dividends paid on preferred stock | (1,269 | ) | — | — | ||||||||
Other, net | — | — | (63 | ) | ||||||||
Net cash used in financing activities | (11,960 | ) | — | (63 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 2,194 | 578 | (12,140 | ) | ||||||||
Cash and cash equivalents, beginning | 631 | 53 | 12,193 | |||||||||
Cash and cash equivalents, ending | $ | 2,825 | $ | 631 | $ | 53 | ||||||
ORGANIZATION_AND_OPERATIONS_De
ORGANIZATION AND OPERATIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 04, 2014 | Jan. 24, 2014 | |
branch_office | |||
Business Acquisition [Line Items] | |||
Number of branches provided with financial services | 73 | ||
Vantagesouth Bancshares, Inc. | Yadkin Financial Corporation | |||
Business Acquisition [Line Items] | |||
Stock exchange ratio | 0.3125 | ||
Piedmont Community Bank Holdings Inc | Yadkin Financial Corporation | |||
Business Acquisition [Line Items] | |||
Stock exchange ratio | 6.28597 | ||
Cash received per share | 6.6878 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Loans (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Period after which loans are placed on nonaccrual basis | 90 days |
Period after which loan is returned to accrual status | 0 years 6 months |
Loans and leases receivable, allowance, quantitative threshold for impairment evaluation | $250,000 |
Minimum | Mortgage Loans Held for Sale | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Period of time between issuance of loan commitment and closing and sale of loan | 10 days |
Minimum | Commercial and industrial | Working Capital and Equipment Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 1 year |
Minimum | Commercial and industrial | Owner Occupied Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 5 years |
Loan receivable amortization period | 15 years |
Minimum | Commercial Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 3 years |
Minimum | Commercial Construction | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 1 year |
Minimum | Non-Real Estate Secured Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 5 years |
Maximum | Mortgage Loans Held for Sale | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Period of time between issuance of loan commitment and closing and sale of loan | 60 days |
Maximum | SBA Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 25 years |
Maximum | Commercial and industrial | Working Capital and Equipment Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 7 years |
Maximum | Commercial and industrial | Owner Occupied Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 7 years |
Loan receivable amortization period | 25 years |
Maximum | Commercial Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 7 years |
Loan receivable amortization period | 25 years |
Maximum | Commercial Construction | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 5 years |
Loan receivable amortization period | 25 years |
Maximum | Commercial Construction | Residential Mortgage | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loan receivable amortization period | 1 year 6 months |
Maximum | Non-Real Estate Secured Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans receivable, maturity period | 7 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 37 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Furniture, Software, and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Furniture, Software, and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Goodwill (Details) (Core Deposits) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Goodwill [Line Items] | |
Finite-lived intangible asset, useful life | 7 years |
Maximum | |
Goodwill [Line Items] | |
Finite-lived intangible asset, useful life | 10 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Per Share Results (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted Average Number of Shares Outstanding Reconciliation (in shares) [Abstract] | |||
Weighted average number of common shares | 20,500,519 | 9,219,406 | 9,219,406 |
Effect of dilutive stock options and warrants | 4,623 | 0 | 0 |
Weighted average number of common shares and dilutive potential common shares | 20,505,142 | 9,219,406 | 9,219,406 |
Stock Options | |||
Weighted Average Number of Shares Outstanding Reconciliation (in shares) [Abstract] | |||
Anti-dilutive securities | 49,474 | 0 | 0 |
Common Stock Warrants | |||
Weighted Average Number of Shares Outstanding Reconciliation (in shares) [Abstract] | |||
Anti-dilutive securities | 91,178 | 0 | 0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2014 | |
operating_segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
MERGERS_AND_ACQUISITIONS_Detai
MERGERS AND ACQUISITIONS (Details Textual) (USD $) | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Jul. 04, 2014 | Apr. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 24, 2014 |
Common stock, shares issued (in shares) | 31,599,150 | 9,219,406 | |||
Yadkin Financial Corporation | |||||
Shares issued in trust | 856,447 | ||||
Shares issued | 17,300,000 | ||||
Percentage of control | 55.00% | ||||
Purchase price (in thousands) | $279,115 | ||||
Yadkin Financial Corporation | Vantagesouth Bancshares, Inc. | |||||
Stock exchange ratio | 0.3125 | ||||
Yadkin Financial Corporation | Piedmont Community Bank Holdings Inc | |||||
Stock exchange ratio | 6.28597 | ||||
Cash received per share | $6.69 | ||||
Purchase price (in thousands) | 279,115 | ||||
Yadkin Financial Corporation | Initial Fair Value Adjustments | |||||
Preferred stock, dividend rate (as a percentage) | 9.00% | ||||
Yadkin Financial Corporation | Series T and T-ACB Preferred Stock | |||||
Preferred stock | 28,405 | ||||
East Carolina Bancorp, Inc | |||||
Stock exchange ratio | 3.55 | ||||
Common stock, shares issued (in shares) | 10,300,000 | ||||
Purchase price (in thousands) | $40,629 | ||||
East Carolina Bancorp, Inc | Series B Preferred Stock | East Carolina Bancorp, Inc | |||||
Warrant (in shares) | 144,984 | ||||
East Carolina Bancorp, Inc | Series B Preferred Stock | Crescent Financial Bancshares, Inc. | |||||
Warrant (in shares) | 514,693 |
MERGERS_AND_ACQUISITIONS_Share
MERGERS AND ACQUISITIONS - Shareholder Groups Immediately Prior to Mergers (Details) (Yadkin Financial Corporation, USD $) | Jul. 04, 2014 |
In Thousands, except Share data, unless otherwise specified | |
Piedmont Community Bank Holdings Inc | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 5,035,198 |
Percentage Ownership | 100.00% |
Market price (in dollars per share) | $122.01 |
Piedmont Community Bank Holdings Inc | Piedmont Community Bank Holdings Inc | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 1,466,664 |
Percentage Ownership | 29.10% |
Piedmont Community Bank Holdings Inc | Yadkin Financial Corporation | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 2,287,654 |
Percentage Ownership | 45.40% |
Piedmont Community Bank Holdings Inc | Vantagesouth Bancshares, Inc. | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 1,144,633 |
Percentage Ownership | 22.70% |
Piedmont Community Bank Holdings Inc | Trust for Benefit of Employees | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 136,247 |
Percentage Ownership | 2.70% |
Piedmont Community Bank Holdings Inc | Piedmont Community Bank Holdings Inc and Vantage South Bancshares, Inc. | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 2,747,544 |
Percentage Ownership | 54.60% |
Yadkin Financial Corporation | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 31,651,107 |
Percentage Ownership | 100.00% |
Market Value at $19.41 YDKN Share Price | $614,348 |
Market price (in dollars per share) | $19.41 |
Yadkin Financial Corporation | Piedmont Community Bank Holdings Inc | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 9,219,406 |
Percentage Ownership | 29.10% |
Market Value at $19.41 YDKN Share Price | 178,949 |
Yadkin Financial Corporation | Yadkin Financial Corporation | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 14,380,127 |
Percentage Ownership | 45.40% |
Market Value at $19.41 YDKN Share Price | 279,118 |
Yadkin Financial Corporation | Vantagesouth Bancshares, Inc. | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 7,195,127 |
Percentage Ownership | 22.70% |
Market Value at $19.41 YDKN Share Price | 139,657 |
Yadkin Financial Corporation | Trust for Benefit of Employees | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 856,447 |
Percentage Ownership | 2.70% |
Market Value at $19.41 YDKN Share Price | 16,624 |
Yadkin Financial Corporation | Piedmont Community Bank Holdings Inc and Vantage South Bancshares, Inc. | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Shares, outstanding | 17,270,980 |
Percentage Ownership | 54.60% |
Market Value at $19.41 YDKN Share Price | $335,230 |
MERGERS_AND_ACQUISITIONS_Calcu
MERGERS AND ACQUISITIONS - Calculation of Purchase Price (Details) (Yadkin Financial Corporation, USD $) | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jul. 04, 2014 |
Business Acquisition [Line Items] | |
Purchase price (in thousands) | $279,115 |
Piedmont Community Bank Holdings Inc | |
Business Acquisition [Line Items] | |
Market price (in dollars per share) | $122.01 |
Shares, outstanding | 5,035,198 |
Purchase price (in thousands) | $279,115 |
Yadkin Financial Corporation | Piedmont Community Bank Holdings Inc | |
Business Acquisition [Line Items] | |
Shares, outstanding | 2,287,654 |
MERGERS_AND_ACQUISITIOINS_Bala
MERGERS AND ACQUISITIOINS - Balance Sheet - Yadkin (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jul. 04, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $65,312,000 | $29,081,000 | ||
Investment securities available for sale | 672,421,000 | 404,388,000 | ||
Loans, net | 2,890,449,000 | 1,385,790,000 | ||
Foreclosed assets | 12,891,000 | 10,518,000 | ||
Deferred tax asset, net | 75,449,000 | 56,816,000 | ||
Goodwill | 151,083,000 | 26,254,000 | ||
Accrued interest receivable and other assets | 81,327,000 | 38,118,000 | ||
Total assets | 4,266,309,000 | 2,122,713,000 | ||
Deposits | 3,247,364,000 | 1,672,231,000 | ||
Short-term borrowings | 250,500,000 | 126,500,000 | ||
Long-term debt | 180,164,000 | 72,921,000 | ||
Accrued interest payable and other liabilities | 30,479,000 | 13,002,000 | ||
Total liabilities | 3,708,507,000 | 1,884,654,000 | ||
Preferred stock | 28,405,000 | 0 | ||
Common stock warrants | 717,000 | 0 | ||
Yadkin Financial Corporation | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 36,116,000 | |||
Investment securities available for sale | 257,655,000 | |||
Loans held for sale | 15,696,000 | |||
Loans, net | 1,372,679,000 | |||
Federal Home Loan Bank stock, at cost | 3,778,000 | |||
Premises and equipment | 37,860,000 | |||
Bank-owned life insurance | 27,306,000 | |||
Foreclosed assets | 1,670,000 | |||
Deferred tax asset, net | 22,894,000 | |||
Goodwill | 124,829,000 | |||
Other intangible assets | 12,951,000 | |||
Accrued interest receivable and other assets | 14,643,000 | |||
Total assets | 1,928,077,000 | |||
Deposits | 1,514,600,000 | |||
Short-term borrowings | 72,879,000 | |||
Long-term debt | 22,731,000 | |||
Accrued interest payable and other liabilities | 9,630,000 | |||
Total liabilities | 1,619,840,000 | |||
Net assets acquired | 308,237,000 | |||
Preferred stock | 28,405,000 | |||
Common stock warrants | 717,000 | |||
Total other equity interests | 29,122,000 | |||
Purchase price | 279,115,000 | |||
Scenario, Previously Reported | Yadkin Financial Corporation | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 36,116,000 | |||
Investment securities available for sale | 259,143,000 | |||
Loans held for sale | 15,696,000 | |||
Loans, net | 1,403,419,000 | |||
Federal Home Loan Bank stock, at cost | 3,778,000 | |||
Premises and equipment | 40,204,000 | |||
Bank-owned life insurance | 27,306,000 | |||
Foreclosed assets | 2,271,000 | |||
Deferred tax asset, net | 16,955,000 | |||
Goodwill | 0 | |||
Other intangible assets | 1,665,000 | |||
Accrued interest receivable and other assets | 16,330,000 | |||
Total assets | 1,822,883,000 | |||
Deposits | 1,509,581,000 | |||
Short-term borrowings | 72,879,000 | |||
Long-term debt | 38,217,000 | |||
Accrued interest payable and other liabilities | 8,448,000 | |||
Total liabilities | 1,629,125,000 | |||
Net assets acquired | 193,758,000 | |||
Preferred stock | 28,405,000 | |||
Common stock warrants | 1,850,000 | |||
Total other equity interests | 30,255,000 | |||
Initial Fair Value Adjustments | Yadkin Financial Corporation | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Investment securities available for sale | -1,488,000 | [1] | ||
Loans held for sale | 0 | |||
Loans, net | -30,740,000 | [2] | ||
Federal Home Loan Bank stock, at cost | 0 | |||
Premises and equipment | -2,344,000 | [3] | ||
Bank-owned life insurance | 0 | |||
Foreclosed assets | -601,000 | [4] | ||
Deferred tax asset, net | 5,939,000 | [5] | ||
Goodwill | 124,172,000 | [6] | ||
Other intangible assets | 10,965,000 | [7] | ||
Accrued interest receivable and other assets | -2,229,000 | [8] | ||
Total assets | 103,674,000 | |||
Deposits | 5,019,000 | [9] | ||
Short-term borrowings | 0 | |||
Long-term debt | -15,486,000 | [10] | ||
Accrued interest payable and other liabilities | -338,000 | [11] | ||
Total liabilities | -10,805,000 | |||
Net assets acquired | 114,479,000 | |||
Preferred stock | 0 | [12] | ||
Common stock warrants | -1,133,000 | [13] | ||
Total other equity interests | -1,133,000 | |||
Allowance loan losses | 16,400,000 | |||
Fair value discount | 47,200,000 | |||
Preferred stock, dividend rate (as a percentage) | 9.00% | |||
Initial Fair Value Adjustments | Yadkin Financial Corporation | Common Stock Warrants | ||||
Business Acquisition [Line Items] | ||||
Number of warrants outstanding (in shares) | 91,178 | |||
Volatility (as a percent) | 48.60% | |||
Expected dividends | 0 | |||
Risk free interest rate (as a percent) | 1.74% | |||
Exercise price (in dollars per share) | $21.90 | |||
Measurement Period Adjustment | Yadkin Financial Corporation | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Investment securities available for sale | 0 | |||
Loans held for sale | 0 | |||
Loans, net | 0 | |||
Federal Home Loan Bank stock, at cost | 0 | |||
Premises and equipment | 0 | |||
Bank-owned life insurance | 0 | |||
Foreclosed assets | 0 | |||
Deferred tax asset, net | 0 | |||
Goodwill | 657,000 | [14] | ||
Other intangible assets | 321,000 | [15] | ||
Accrued interest receivable and other assets | 542,000 | [16] | ||
Total assets | 1,520,000 | |||
Deposits | 0 | |||
Short-term borrowings | 0 | |||
Long-term debt | 0 | |||
Accrued interest payable and other liabilities | 1,520,000 | [17] | ||
Total liabilities | 1,520,000 | |||
Net assets acquired | 0 | |||
Preferred stock | 0 | |||
Common stock warrants | 0 | |||
Total other equity interests | $0 | |||
[1] | Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. | |||
[2] | Adjustment reflects the elimination of Yadkin's historical allowance for loan losses of $16.4 million and the recording of a fair value discount of $47.2 million on the loan portfolio. The fair value discount was calculated by forecasting cash flows over the expected remaining life of each loan and discounting those cash flows to present value using current market rates for similar loans. Forecasted cash flows include an estimate of lifetime credit losses on the loan portfolio. | |||
[3] | Adjustment reflects fair value adjustments on certain acquired branch offices as well as certain software and computer equipment. | |||
[4] | Adjustment reflects the write down of certain foreclosed assets based on current estimates of property values given current market conditions and additional discounts based on the Company's planned disposition strategy. | |||
[5] | Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | |||
[6] | Goodwill represents the excess of the purchase price over the fair value of acquired net assets. | |||
[7] | Adjustment reflects the estimated fair value of the acquired core deposit intangible. | |||
[8] | Adjustment reflects the impact of fair value adjustments on other assets, which include mortgage servicing assets, certain unusable prepaid expenses, and the elimination of accrued interest on purchased credit-impaired loans. | |||
[9] | Adjustment reflects the fair value premium on time deposits, which was calculated by discounting future contractual interest payments at a current market interest rate. | |||
[10] | Adjustments reflect the fair value adjustments for subordinated debt issued to fund trust preferred securities and long-term Federal Home Loan Bank ("FHLB") advances, which were calculated by discounting future contractual interest payments at a current market interest rate for similar instruments. For FHLB advances, the fair value adjustment is consistent with the prepayment penalty the FHLB would charge to terminate the advance. | |||
[11] | Adjustments reflect accruals and fair value adjustments for other liabilities, which include the write-off of unearned income, deferred gains, and accrued liabilities that will not be paid. | |||
[12] | No fair value adjustments were made to Yadkin's outstanding preferred stock. The current preferred dividend rate of 9.0 percent approximates the current market yield for issuances of similar perpetual preferred stock. The preferred stock is currently redeemable at the liquidation value, and the Company expects the remaining life of this preferred stock to be relatively short. | |||
[13] | The fair value of the common stock warrants was estimated using a Black-Scholes option pricing model assuming all 91,178 warrants will remain outstanding through expiration on July 24, 2019. Assumptions and inputs used in the option pricing model included stock price volatility of 48.6 percent, no dividends, a risk free interest rate of 1.74 percent, and an exercise price of $21.90 per common warrant. | |||
[14] | Amount reflects adjustments to goodwill resulting from adjustments (o), (p) and (q). | |||
[15] | Amount reflects an adjustment to estimated fair value of the acquired core deposit intangible. | |||
[16] | Amount reflects adjustments to acquired deferred tax assets and the tax impact of adjustments (o) and (q). | |||
[17] | Amount reflects the adjustment of change in control obligations existing under various employment agreements that were triggered by the Mergers. |
MERGERS_AND_ACQUISITIONS_Balan
MERGERS AND ACQUISITIONS - Balance Sheet - ECB Bancorp (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 15, 2014 | Feb. 16, 2014 | Apr. 01, 2013 | |
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $65,312 | $29,081 | |||||
Investment securities available for sale | 672,421 | 404,388 | |||||
Loans, net | 2,890,449 | 1,385,790 | |||||
Foreclosed assets | 12,891 | 10,518 | |||||
Deferred tax asset, net | 75,449 | 56,816 | |||||
Accrued interest receivable and other assets | 81,327 | 38,118 | |||||
Total assets | 4,266,309 | 2,122,713 | |||||
Deposits | 3,247,364 | 1,672,231 | |||||
Short-term borrowings | 250,500 | 126,500 | |||||
Long-term debt | 180,164 | 72,921 | |||||
Accrued interest payable and other liabilities | 30,479 | 13,002 | |||||
Total liabilities | 3,708,507 | 1,884,654 | |||||
Preferred stock | 28,405 | 0 | |||||
Common stock warrants | 717 | 0 | |||||
Gain on acquisition | 0 | 7,382 | 0 | ||||
Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Preferred stock, dividend rate (as a percentage) | 5.00% | ||||||
Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Preferred stock, dividend rate (as a percentage) | 9.00% | ||||||
East Carolina Bancorp, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | 24,008 | ||||||
Investment securities available for sale | 289,359 | ||||||
Loans held for sale | 13,456 | ||||||
Loans, net | 453,054 | ||||||
Federal Home Loan Bank stock, at cost | 3,150 | ||||||
Premises and equipment | 24,591 | ||||||
Bank-owned life insurance | 12,249 | ||||||
Foreclosed assets | 6,068 | ||||||
Deferred tax asset, net | 16,608 | ||||||
Other intangible assets | 4,307 | ||||||
Accrued interest receivable and other assets | 8,836 | ||||||
Total assets | 855,686 | ||||||
Deposits | 736,114 | ||||||
Short-term borrowings | 34,284 | ||||||
Long-term debt | 16,460 | ||||||
Accrued interest payable and other liabilities | 3,131 | ||||||
Total liabilities | 789,989 | ||||||
Net assets acquired | 65,697 | ||||||
Preferred stock | 17,553 | ||||||
Common stock warrants | 133 | ||||||
Total other equity interests | 17,686 | ||||||
Gain on acquisition | 7,382 | ||||||
Purchase price | 40,629 | ||||||
Scenario, Previously Reported | East Carolina Bancorp, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | 24,008 | ||||||
Investment securities available for sale | 289,058 | ||||||
Loans held for sale | 3,857 | ||||||
Loans, net | 483,474 | ||||||
Federal Home Loan Bank stock, at cost | 3,150 | ||||||
Premises and equipment | 25,633 | ||||||
Bank-owned life insurance | 12,249 | ||||||
Foreclosed assets | 7,090 | ||||||
Deferred tax asset, net | 6,986 | ||||||
Other intangible assets | 0 | ||||||
Accrued interest receivable and other assets | 10,423 | ||||||
Total assets | 865,928 | ||||||
Deposits | 731,926 | ||||||
Short-term borrowings | 34,284 | ||||||
Long-term debt | 16,000 | ||||||
Accrued interest payable and other liabilities | 2,867 | ||||||
Total liabilities | 785,077 | ||||||
Net assets acquired | 80,851 | ||||||
Preferred stock | 17,660 | ||||||
Common stock warrants | 878 | ||||||
Total other equity interests | 18,538 | ||||||
Initial Fair Value Adjustments | East Carolina Bancorp, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | 0 | ||||||
Investment securities available for sale | 301 | [1] | |||||
Loans held for sale | 9,790 | [2] | |||||
Loans, net | -30,420 | [3] | |||||
Federal Home Loan Bank stock, at cost | 0 | ||||||
Premises and equipment | -1,177 | [4] | |||||
Bank-owned life insurance | 0 | ||||||
Foreclosed assets | -717 | [5] | |||||
Deferred tax asset, net | 9,082 | [6] | |||||
Other intangible assets | 4,307 | [7] | |||||
Accrued interest receivable and other assets | -665 | [8] | |||||
Total assets | -9,499 | ||||||
Deposits | 4,188 | [9] | |||||
Short-term borrowings | 0 | ||||||
Long-term debt | 460 | [10] | |||||
Accrued interest payable and other liabilities | 148 | [11] | |||||
Total liabilities | 4,796 | ||||||
Net assets acquired | -14,295 | ||||||
Preferred stock | -107 | [12] | |||||
Common stock warrants | -745 | [12] | |||||
Total other equity interests | -852 | ||||||
Measurement Period Adjustment | East Carolina Bancorp, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | 0 | ||||||
Investment securities available for sale | 0 | ||||||
Loans held for sale | -191 | [13] | |||||
Loans, net | 0 | ||||||
Federal Home Loan Bank stock, at cost | 0 | ||||||
Premises and equipment | 135 | [13] | |||||
Bank-owned life insurance | 0 | ||||||
Foreclosed assets | -305 | [13] | |||||
Deferred tax asset, net | 540 | [13] | |||||
Other intangible assets | 0 | ||||||
Accrued interest receivable and other assets | -922 | [13] | |||||
Total assets | -743 | ||||||
Deposits | 0 | ||||||
Short-term borrowings | 0 | ||||||
Long-term debt | 0 | ||||||
Accrued interest payable and other liabilities | 116 | [13] | |||||
Total liabilities | 116 | ||||||
Net assets acquired | -859 | ||||||
Preferred stock | 0 | ||||||
Common stock warrants | 0 | ||||||
Total other equity interests | $0 | ||||||
[1] | Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. | ||||||
[2] | Adjustment reflect the reclassification of the fair value of certain loans identified by management as being held for sale at acquisition. | ||||||
[3] | Adjustment reflects the elimination of ECB's historical allowance for loan losses and the recording of a fair value discount on the loan portfolio. The fair value discount was calculated by forecasting cash flows over the expected remaining life of each loan and discounting those cash flows to present value using current market rates for similar loans. Forecasted cash flows include an estimate of lifetime credit losses on the loan portfolio. | ||||||
[4] | Adjustment reflects fair value adjustments on certain acquired branch offices as well as certain software and computer equipment. | ||||||
[5] | Adjustment reflects the write down of certain foreclosed assets based on current estimates of property values given current market conditions and additional discounts based on the Company's planned disposition strategy. | ||||||
[6] | Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | ||||||
[7] | Adjustment reflects the fair value of the acquired core deposit intangible. | ||||||
[8] | Adjustment reflects the impact of fair value adjustments on other assets, which include the write down of certain unusable prepaid expenses and the elimination of accrued interest on purchased credit-impaired loans. | ||||||
[9] | Adjustment reflects the fair value premium on time deposits, which was calculated by discounting future contractual interest payments at a current market interest rate. | ||||||
[10] | Adjustment reflects the fair value premium on long-term FHLB advances, which was calculated by discounting future contractual interest payments at a current market interest rate. This fair value premium is also consistent with the prepayment penalty the FHLB would charge to terminate the advance. | ||||||
[11] | Adjustment reflects the impact of fair value adjustments on other liabilities, which primarily includes the accrual of a preferred stock dividend at acquisition. | ||||||
[12] | Amount reflects the adjustment to record other equity interests at fair value. The fair value of preferred stock issued to Treasury was estimated by discounting future contractual dividend payments at a current market interest rate for preferred stocks of issuers with similar risk. The assumed liquidation date of the preferred stock was February 15, 2014, which was the date the dividend reset from 5 to 9 percent. The fair value of the common stock warrant issued to Treasury was estimated using a Black-Scholes option pricing model assuming a warrant life through the dividend reset date. | ||||||
[13] | Adjustments reflect changes to acquisition date fair values of certain assets based on additional information received post-acquisition within the measurement period. Measurement period adjustments included tax-effected adjustments to reduce the fair value of a non-marketable investment, to dispose of other assets with no value at the merger, to reduce the fair value of certain distressed loans held for sale, to reduce the fair value of certain other real estate owned, to recognize a liability for outstanding ECB employee credit card balances, and to increase the fair value of a bank-owned office. |
MERGERS_AND_ACQUISITIONS_Pro_F
MERGERS AND ACQUISITIONS - Pro Forma Information (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total interest and non-interest income | $212,531 | $208,608 |
East Carolina Bancorp, Inc | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net interest income | 157,805 | 153,437 |
Net income | 34,370 | 23,009 |
Net income available to common shareholders | $31,934 | $20,867 |
Basic income per common share (in dollars per share) | $1.02 | $0.73 |
Diluted income per common share (in dollars per share) | $1.02 | $0.73 |
Weighted average basic common shares outstanding (in shares) | 31,295,562 | 28,568,000 |
Weighted average diluted common shares outstanding (in shares) | 31,375,585 | 28,640,684 |
INVESTMENT_SECURITIES_Summary_
INVESTMENT SECURITIES - Summary of Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities available for sale: | ||
Amortized Cost | $674,156 | $415,051 |
Gross Unrealized Gains | 2,822 | 2,359 |
Gross Unrealized Losses | 4,557 | 13,022 |
Investment securities available for sale, Fair Value | 672,421 | 404,388 |
GSE obligations | ||
Securities available for sale: | ||
Amortized Cost | 14,914 | 14,834 |
Gross Unrealized Gains | 30 | 0 |
Gross Unrealized Losses | 0 | 161 |
Investment securities available for sale, Fair Value | 14,944 | 14,673 |
SBA-guaranteed securities | ||
Securities available for sale: | ||
Amortized Cost | 60,408 | 66,579 |
Gross Unrealized Gains | 84 | 52 |
Gross Unrealized Losses | 372 | 751 |
Investment securities available for sale, Fair Value | 60,120 | 65,880 |
Mortgage-backed securities issued by GSE | ||
Securities available for sale: | ||
Amortized Cost | 428,076 | 216,818 |
Gross Unrealized Gains | 1,086 | 69 |
Gross Unrealized Losses | 3,879 | 11,627 |
Investment securities available for sale, Fair Value | 425,283 | 205,260 |
Corporate bonds | ||
Securities available for sale: | ||
Amortized Cost | 118,799 | 109,423 |
Gross Unrealized Gains | 1,261 | 1,800 |
Gross Unrealized Losses | 148 | 483 |
Investment securities available for sale, Fair Value | 119,912 | 110,740 |
Non-agency RMBS | ||
Securities available for sale: | ||
Amortized Cost | 4,961 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | 1 | |
Investment securities available for sale, Fair Value | 4,963 | |
Non-agency CMBS | ||
Securities available for sale: | ||
Amortized Cost | 3,576 | 5,867 |
Gross Unrealized Gains | 2 | 71 |
Gross Unrealized Losses | 0 | 0 |
Investment securities available for sale, Fair Value | 3,578 | 5,938 |
Municipal bonds | ||
Securities available for sale: | ||
Amortized Cost | 39,907 | 600 |
Gross Unrealized Gains | 355 | 1 |
Gross Unrealized Losses | 4 | 0 |
Investment securities available for sale, Fair Value | 40,258 | 601 |
Securities held to maturity: | ||
Amortized Cost | 39,620 | |
Gross Unrealized Gains | 966 | |
Gross Unrealized Losses | 0 | |
Investment securities held to maturity, Fair Value | 40,586 | |
Other debt securities | ||
Securities available for sale: | ||
Amortized Cost | 498 | 253 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Investment securities available for sale, Fair Value | 498 | 253 |
Marketable equity securities | ||
Securities available for sale: | ||
Amortized Cost | 3,017 | 677 |
Gross Unrealized Gains | 1 | 366 |
Gross Unrealized Losses | 153 | 0 |
Investment securities available for sale, Fair Value | 2,865 | 1,043 |
Corporate bonds | ||
Securities held to maturity: | ||
Amortized Cost | 500 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Investment securities held to maturity, Fair Value | $500 |
INVESTMENT_SECURITIES_Continuo
INVESTMENT SECURITIES - Continuous Unrealized Loss Position (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities available for sale: | ||
Less Than 12 Months, Fair Value | $176,385 | $290,255 |
Less Than 12 Months, Unrealized Losses | 1,340 | 13,022 |
12 Months or More, Fair Value | 195,463 | 0 |
12 Months or More, Unrealized Losses | 3,217 | 0 |
Total Fair Value | 371,848 | 290,255 |
Total Unrealized Losses | 4,557 | 13,022 |
SBA-guaranteed securities | ||
Securities available for sale: | ||
Less Than 12 Months, Fair Value | 94 | 57,277 |
Less Than 12 Months, Unrealized Losses | 1 | 751 |
12 Months or More, Fair Value | 41,950 | 0 |
12 Months or More, Unrealized Losses | 371 | 0 |
Total Fair Value | 42,044 | 57,277 |
Total Unrealized Losses | 372 | 751 |
Mortgage-backed securities issued by GSE | ||
Securities available for sale: | ||
Less Than 12 Months, Fair Value | 152,186 | 198,885 |
Less Than 12 Months, Unrealized Losses | 1,117 | 11,627 |
12 Months or More, Fair Value | 149,746 | 0 |
12 Months or More, Unrealized Losses | 2,762 | 0 |
Total Fair Value | 301,932 | 198,885 |
Total Unrealized Losses | 3,879 | 11,627 |
Corporate bonds | ||
Securities available for sale: | ||
Less Than 12 Months, Fair Value | 18,123 | 19,420 |
Less Than 12 Months, Unrealized Losses | 64 | 483 |
12 Months or More, Fair Value | 3,767 | 0 |
12 Months or More, Unrealized Losses | 84 | 0 |
Total Fair Value | 21,890 | 19,420 |
Total Unrealized Losses | 148 | 483 |
Non-agency RMBS | ||
Securities available for sale: | ||
Less Than 12 Months, Fair Value | 1,318 | |
Less Than 12 Months, Unrealized Losses | 1 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 1,318 | |
Total Unrealized Losses | 1 | |
GSE obligations | ||
Securities available for sale: | ||
Less Than 12 Months, Fair Value | 14,673 | |
Less Than 12 Months, Unrealized Losses | 161 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 14,673 | |
Total Unrealized Losses | 161 | |
Municipal bonds | ||
Securities available for sale: | ||
Less Than 12 Months, Fair Value | 1,953 | |
Less Than 12 Months, Unrealized Losses | 4 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 1,953 | |
Total Unrealized Losses | 4 | |
Marketable equity securities | ||
Securities available for sale: | ||
Less Than 12 Months, Fair Value | 2,711 | |
Less Than 12 Months, Unrealized Losses | 153 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Total Fair Value | 2,711 | |
Total Unrealized Losses | $153 |
INVESTMENT_SECURITIES_Narrativ
INVESTMENT SECURITIES - Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | investment_security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities with an unrealized loss position for more than 12 months | 66 | |
Available for sale securities in unrealized loss position for more than twelve months | $3,217 | $0 |
Investment securities, as a percentage of total stockholders' equity | 10.00% | |
Carrying amount of investment securities pledged as collateral | 314,184 | 226,048 |
Mortgage-backed securities issued by GSE | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of mortgage obligations | 76 | 65 |
Available for sale securities in unrealized loss position for more than twelve months | 2,762 | 0 |
SBA-guaranteed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of mortgage obligations | 19 | 23 |
Available for sale securities in unrealized loss position for more than twelve months | 371 | 0 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of mortgage obligations | 5 | 6 |
Available for sale securities in unrealized loss position for more than twelve months | 84 | 0 |
Marketable equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of mortgage obligations | 4 | |
Available for sale securities in unrealized loss position for more than twelve months | 0 | |
GSE Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of mortgage obligations | 1 | 2 |
Non-agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of mortgage obligations | 1 | |
Available for sale securities in unrealized loss position for more than twelve months | 0 | |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of mortgage obligations | 6 | |
Available for sale securities in unrealized loss position for more than twelve months | $0 |
INVESTMENT_SECURITIES_Contract
INVESTMENT SECURITIES - Contractual Maturities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities available for sale: | ||
Due in one year or less, Amortized cost | $30,365 | $677 |
Due from one to five years, Amortized cost | 294,557 | 182,777 |
Due from five to ten years, Amortized cost | 313,733 | 173,624 |
Due after ten years, Amortized cost | 32,484 | 57,296 |
Equity Securities, Amortized cost | 3,017 | 677 |
Amortized Cost | 674,156 | 415,051 |
Due in one year or less, Fair value | 30,536 | 678 |
Due from one to five years, Fair value | 295,252 | 182,713 |
Due from five to ten years, Fair value | 311,313 | 166,765 |
Due after ten years, Fair value | 32,455 | 53,189 |
Equity Securities, Fair value | 2,865 | 1,043 |
Fair Value | 672,421 | 404,388 |
Securities held to maturity: | ||
Due after one year through five years, Amortized Cost | 20,177 | 500 |
Due after five years through ten years, Amortized Cost | 15,836 | 0 |
Due after ten years, Amortized Cost | 3,607 | 0 |
Amortized Cost | 39,620 | 500 |
Due after one year through five years, Fair Value | 20,747 | 500 |
Due after five years through ten years, Fair Value | 16,092 | 0 |
Due after ten years, Fair Value | 3,747 | 0 |
Fair Value | $40,586 | $500 |
INVESTMENT_SECURITIES_Securiti
INVESTMENT SECURITIES - Securities Gains (Losses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains on sales of securities available for sale | $453 | $1,250 | $1,335 |
Gross losses on sales of securities available for sale | -327 | -35 | -84 |
Total securities gains (losses) | $126 | $1,215 | $1,251 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES- Summary of Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $2,899,037 | $1,393,321 |
Less: | ||
Deferred loan fees | -771 | -488 |
Allowance for loan losses | -7,817 | -7,043 |
Net loans | 2,890,449 | 1,385,790 |
Recorded investment of loans | 828,365 | 424,414 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 1,355,536 | 670,293 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 468,848 | 230,614 |
Commercial Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 370,807 | 175,794 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 360,249 | 191,378 |
Construction and development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 30,061 | 22,520 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 276,662 | 94,390 |
Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $36,874 | $8,332 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES LOANS AND ALLOWANCE FOR LOAN LOSSES- Contractual Obligations Due From Directors, Executive Officers, and Their Interests (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Proceeds from sale of loans held-for-sale, gross | $2,076,000 | $2,595,000 | $20,497,000 |
Gain (loss) on sales of loans, net | 0 | ||
Commercial and industrial | |||
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Loans receivable, fair value | 7,698,000 | ||
Directors and Officers | |||
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Loans to directors and officers at beginning of period | 26,437,000 | 29,999,000 | 30,910,000 |
Additions for new directors | 5,850,000 | 1,232,000 | 0 |
Reductions for retirement of directors | -24,835,000 | -1,816,000 | 0 |
New advances to directors and officers | 1,092,000 | 8,000 | 1,741,000 |
Payoffs and principal reductions | -1,145,000 | -2,986,000 | -2,652,000 |
Loans to directors and officers at end of period | $7,398,000 | $26,437,000 | $29,999,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES- Purchased Credit-Impaired Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 04, 2014 | Apr. 01, 2013 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Fair value of PCI loans at acquisition | $228,956 | $203,179 | ||
Yadkin Financial Corporation | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contractually required payments | 110,365 | |||
Nonaccretable difference | -21,102 | |||
Cash flows expected to be collected at acquisition | 89,263 | |||
Accretable yield | -8,604 | |||
Fair value of PCI loans at acquisition | 80,659 | |||
East Carolina Bancorp, Inc | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contractually required payments | 61,801 | |||
Nonaccretable difference | -11,433 | |||
Cash flows expected to be collected at acquisition | 50,368 | |||
Accretable yield | -4,242 | |||
Fair value of PCI loans at acquisition | $46,126 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES- Accretable Yield, or Income Expected to be Collected, Related to PCI Loans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Purchased Credit-Impaired Loans [Roll Forward] | |||
Balance, beginning of period | $25,349 | $27,632 | $29,645 |
Loans purchased | 8,604 | 4,242 | 0 |
Accretion of income | -13,764 | -13,640 | -15,252 |
Reclassifications from nonaccretable difference | 4,091 | 9,595 | 14,031 |
Other, net | 901 | -2,480 | -792 |
Balance, end of period | $25,181 | $25,349 | $27,632 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES- Contractual Payments, Fair Value, and Estimate of Cash Flows (Details) (USD $) | Jul. 04, 2014 | Apr. 01, 2013 |
In Thousands, unless otherwise specified | ||
Yadkin Financial Corporation | ||
Business Acquisition [Line Items] | ||
Contractually required payments | $1,502,793 | |
Fair value of acquired loans at acquisition | 1,292,020 | |
Contractual cash flows not expected to be collected | 36,219 | |
East Carolina Bancorp, Inc | ||
Business Acquisition [Line Items] | ||
Contractually required payments | 499,963 | |
Fair value of acquired loans at acquisition | 406,928 | |
Contractual cash flows not expected to be collected | $10,098 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES- Activity in Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for loan losses: | |||
Beginning balance | $1,081 | $7,043 | $3,998 |
Charge-offs | -2,749 | -3,141 | -2,721 |
Recoveries | 312 | 502 | 297 |
Provision for loan losses | 5,354 | 3,413 | 5,469 |
Ending balance | 7,817 | 7,043 | |
Ending balance: | |||
Individually evaluated for impairment | 390 | 652 | |
Collectively evaluated for impairment | 6,129 | 4,030 | |
Purchased credit-impaired | 1,298 | 2,361 | |
Total | 7,817 | 7,043 | |
Ending balance: | |||
Individually evaluated for impairment | 9,985 | 8,916 | |
Collectively evaluated for impairment | 2,682,925 | 1,204,370 | |
Purchased credit-impaired | 206,127 | 180,035 | |
Total | 2,899,037 | 1,393,321 | |
Commercial real estate | |||
Allowance for loan losses: | |||
Beginning balance | 457 | 2,419 | 1,524 |
Charge-offs | 0 | -366 | -20 |
Recoveries | 0 | 46 | 26 |
Provision for loan losses | 1,067 | 697 | 889 |
Ending balance | 2,796 | 2,419 | |
Ending balance: | |||
Individually evaluated for impairment | 158 | 57 | |
Collectively evaluated for impairment | 2,177 | 1,322 | |
Purchased credit-impaired | 461 | 1,040 | |
Total | 2,796 | 2,419 | |
Ending balance: | |||
Individually evaluated for impairment | 5,398 | 4,590 | |
Collectively evaluated for impairment | 1,227,597 | 562,081 | |
Purchased credit-impaired | 122,541 | 103,622 | |
Total | 1,355,536 | 670,293 | |
Commercial and industrial | |||
Allowance for loan losses: | |||
Beginning balance | 197 | 805 | 798 |
Charge-offs | -250 | -1,034 | -483 |
Recoveries | 19 | 88 | 23 |
Provision for loan losses | 832 | 1,415 | 467 |
Ending balance | 1,274 | 805 | |
Ending balance: | |||
Individually evaluated for impairment | 229 | 323 | |
Collectively evaluated for impairment | 952 | 482 | |
Purchased credit-impaired | 93 | 0 | |
Total | 1,274 | 805 | |
Ending balance: | |||
Individually evaluated for impairment | 2,343 | 343 | |
Collectively evaluated for impairment | 452,487 | 219,251 | |
Purchased credit-impaired | 14,018 | 11,020 | |
Total | 468,848 | 230,614 | |
Commercial Construction | |||
Allowance for loan losses: | |||
Beginning balance | 207 | 1,400 | 597 |
Charge-offs | -400 | -367 | -723 |
Recoveries | 125 | 69 | 47 |
Provision for loan losses | 665 | 589 | 1,479 |
Ending balance | 1,691 | 1,400 | |
Ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,590 | 1,139 | |
Purchased credit-impaired | 101 | 261 | |
Total | 1,691 | 1,400 | |
Ending balance: | |||
Individually evaluated for impairment | 910 | 2,609 | |
Collectively evaluated for impairment | 337,540 | 137,911 | |
Purchased credit-impaired | 32,357 | 35,274 | |
Total | 370,807 | 175,794 | |
Residential real estate | |||
Allowance for loan losses: | |||
Beginning balance | 128 | 1,673 | 940 |
Charge-offs | -341 | -591 | -672 |
Recoveries | 153 | 131 | 146 |
Provision for loan losses | 1,000 | 24 | 1,259 |
Ending balance | 1,237 | 1,673 | |
Ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 681 | 688 | |
Purchased credit-impaired | 556 | 985 | |
Total | 1,237 | 1,673 | |
Ending balance: | |||
Individually evaluated for impairment | 928 | 695 | |
Collectively evaluated for impairment | 328,693 | 164,106 | |
Purchased credit-impaired | 30,628 | 26,577 | |
Total | 360,249 | 191,378 | |
Construction and development | |||
Allowance for loan losses: | |||
Beginning balance | 28 | 187 | 18 |
Charge-offs | -15 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision for loan losses | 5 | 7 | 169 |
Ending balance | 194 | 187 | |
Ending balance: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 194 | 187 | |
Purchased credit-impaired | 0 | 0 | |
Total | 194 | 187 | |
Ending balance: | |||
Individually evaluated for impairment | 0 | 242 | |
Collectively evaluated for impairment | 28,436 | 20,447 | |
Purchased credit-impaired | 1,625 | 1,831 | |
Total | 30,061 | 22,520 | |
Home equity | |||
Allowance for loan losses: | |||
Beginning balance | 51 | 476 | 85 |
Charge-offs | -1,596 | -429 | -558 |
Recoveries | 6 | 123 | 39 |
Provision for loan losses | 1,624 | 376 | 910 |
Ending balance | 546 | 476 | |
Ending balance: | |||
Individually evaluated for impairment | 3 | 270 | |
Collectively evaluated for impairment | 456 | 153 | |
Purchased credit-impaired | 87 | 53 | |
Total | 546 | 476 | |
Ending balance: | |||
Individually evaluated for impairment | 406 | 424 | |
Collectively evaluated for impairment | 271,928 | 92,592 | |
Purchased credit-impaired | 4,328 | 1,374 | |
Total | 276,662 | 94,390 | |
Other consumer | |||
Allowance for loan losses: | |||
Beginning balance | 13 | 83 | 36 |
Charge-offs | -147 | -354 | -265 |
Recoveries | 9 | 45 | 16 |
Provision for loan losses | 161 | 305 | 296 |
Ending balance | 79 | 83 | |
Ending balance: | |||
Individually evaluated for impairment | 0 | 2 | |
Collectively evaluated for impairment | 79 | 59 | |
Purchased credit-impaired | 0 | 22 | |
Total | 79 | 83 | |
Ending balance: | |||
Individually evaluated for impairment | 0 | 13 | |
Collectively evaluated for impairment | 36,244 | 7,982 | |
Purchased credit-impaired | 630 | 337 | |
Total | $36,874 | $8,332 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES- Past Due Analysis and Aging (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consumer: | ||
Total | $2,899,037 | $1,393,321 |
30-89 Days Past Due | ||
Commercial: | ||
Commercial, Real estate | 7,971 | 2,419 |
Commercial, Commercial and industrial | 5,612 | 1,945 |
Commercial, Construction and development | 1,162 | 146 |
Consumer: | ||
Consumer, Residential real estate | 4,872 | 5,097 |
Consumer, Construction and development | 569 | 603 |
Consumer, Home equity | 3,985 | 990 |
Consumer, Other consumer | 797 | 245 |
Total | 24,968 | 11,445 |
90 Days or Greater Past Due | ||
Commercial: | ||
Commercial, Real estate | 2,383 | 2,142 |
Commercial, Commercial and industrial | 1,707 | 505 |
Commercial, Construction and development | 369 | 1,316 |
Consumer: | ||
Consumer, Residential real estate | 2,210 | 1,365 |
Consumer, Construction and development | 12 | 237 |
Consumer, Home equity | 395 | 701 |
Consumer, Other consumer | 70 | 136 |
Total | 7,146 | 6,402 |
Total Past Due | ||
Commercial: | ||
Commercial, Real estate | 10,354 | 4,561 |
Commercial, Commercial and industrial | 7,319 | 2,450 |
Commercial, Construction and development | 1,531 | 1,462 |
Consumer: | ||
Consumer, Residential real estate | 7,082 | 6,462 |
Consumer, Construction and development | 581 | 840 |
Consumer, Home equity | 4,380 | 1,691 |
Consumer, Other consumer | 867 | 381 |
Total | 32,114 | 17,847 |
Current | ||
Commercial: | ||
Commercial, Real estate | 1,222,641 | 562,110 |
Commercial, Commercial and industrial | 447,511 | 217,144 |
Commercial, Construction and development | 336,919 | 139,058 |
Consumer: | ||
Consumer, Residential real estate | 322,539 | 158,339 |
Consumer, Construction and development | 27,855 | 19,849 |
Consumer, Home equity | 267,954 | 91,325 |
Consumer, Other consumer | 35,377 | 7,614 |
Total | 2,660,796 | 1,195,439 |
Total | ||
Commercial: | ||
Commercial, Real estate | 1,232,995 | 566,671 |
Commercial, Commercial and industrial | 454,830 | 219,594 |
Commercial, Construction and development | 338,450 | 140,520 |
Consumer: | ||
Consumer, Residential real estate | 329,621 | 164,801 |
Consumer, Construction and development | 28,436 | 20,689 |
Consumer, Home equity | 272,334 | 93,016 |
Consumer, Other consumer | 36,244 | 7,995 |
Total | 2,692,910 | 1,213,286 |
Non-PCI Loans | ||
Commercial: | ||
Commercial, Real estate | 1,232,995 | 566,671 |
Commercial, Commercial and industrial | 454,830 | 219,594 |
Commercial, Construction and development | 338,450 | 140,520 |
Consumer: | ||
Consumer, Residential real estate | 329,621 | 164,801 |
Consumer, Construction and development | 28,436 | 20,689 |
Consumer, Home equity | 272,334 | 93,016 |
Consumer, Other consumer | 36,244 | 7,995 |
Total | 2,692,910 | 1,213,286 |
Non-PCI Loans | Pass | ||
Commercial: | ||
Commercial, Real estate | 1,187,938 | 532,669 |
Commercial, Commercial and industrial | 433,093 | 210,382 |
Commercial, Construction and development | 334,213 | 134,074 |
Consumer: | ||
Consumer, Residential real estate | 316,743 | 153,123 |
Consumer, Construction and development | 27,447 | 19,566 |
Consumer, Home equity | 264,953 | 87,891 |
Consumer, Other consumer | 35,736 | 7,773 |
Total | 2,600,123 | 1,145,478 |
Non-PCI Loans | Special Mention | ||
Commercial: | ||
Commercial, Real estate | 32,142 | 24,245 |
Commercial, Commercial and industrial | 15,148 | 5,195 |
Commercial, Construction and development | 2,128 | 3,400 |
Consumer: | ||
Consumer, Residential real estate | 4,527 | 7,812 |
Consumer, Construction and development | 735 | 921 |
Consumer, Home equity | 4,238 | 2,524 |
Consumer, Other consumer | 237 | 43 |
Total | 59,155 | 44,140 |
Non-PCI Loans | Substandard | ||
Commercial: | ||
Commercial, Real estate | 12,915 | 9,757 |
Commercial, Commercial and industrial | 6,510 | 3,993 |
Commercial, Construction and development | 2,109 | 2,847 |
Consumer: | ||
Consumer, Residential real estate | 8,351 | 3,866 |
Consumer, Construction and development | 254 | 202 |
Consumer, Home equity | 3,143 | 2,601 |
Consumer, Other consumer | 269 | 179 |
Total | 33,551 | 23,445 |
Non-PCI Loans | Doubtful | ||
Commercial: | ||
Commercial, Real estate | 0 | 0 |
Commercial, Commercial and industrial | 79 | 24 |
Commercial, Construction and development | 0 | 199 |
Consumer: | ||
Consumer, Residential real estate | 0 | 0 |
Consumer, Construction and development | 0 | 0 |
Consumer, Home equity | 0 | 0 |
Consumer, Other consumer | 2 | 0 |
Total | 81 | 223 |
PCI Loans | ||
Commercial: | ||
Commercial, Real estate | 122,541 | 103,622 |
Commercial, Commercial and industrial | 14,018 | 11,020 |
Commercial, Construction and development | 32,357 | 35,274 |
Consumer: | ||
Consumer, Residential real estate | 30,628 | 26,577 |
Consumer, Construction and development | 1,625 | 1,831 |
Consumer, Home equity | 4,328 | 1,374 |
Consumer, Other consumer | 630 | 337 |
Total | 206,127 | 180,035 |
PCI Loans | Pass | ||
Commercial: | ||
Commercial, Real estate | 57,095 | 53,900 |
Commercial, Commercial and industrial | 7,408 | 7,921 |
Commercial, Construction and development | 6,857 | 9,666 |
Consumer: | ||
Consumer, Residential real estate | 12,703 | 13,794 |
Consumer, Construction and development | 189 | 212 |
Consumer, Home equity | 143 | 28 |
Consumer, Other consumer | 2 | 21 |
Total | 84,397 | 85,542 |
PCI Loans | Special Mention | ||
Commercial: | ||
Commercial, Real estate | 45,711 | 35,399 |
Commercial, Commercial and industrial | 2,936 | 2,382 |
Commercial, Construction and development | 16,374 | 17,408 |
Consumer: | ||
Consumer, Residential real estate | 8,206 | 7,070 |
Consumer, Construction and development | 723 | 510 |
Consumer, Home equity | 2,827 | 850 |
Consumer, Other consumer | 488 | 281 |
Total | 77,265 | 63,900 |
PCI Loans | Substandard | ||
Commercial: | ||
Commercial, Real estate | 19,735 | 14,323 |
Commercial, Commercial and industrial | 3,674 | 669 |
Commercial, Construction and development | 9,126 | 7,124 |
Consumer: | ||
Consumer, Residential real estate | 9,719 | 5,692 |
Consumer, Construction and development | 713 | 1,109 |
Consumer, Home equity | 1,358 | 496 |
Consumer, Other consumer | 140 | 35 |
Total | 44,465 | 29,448 |
PCI Loans | Doubtful | ||
Commercial: | ||
Commercial, Real estate | 0 | 0 |
Commercial, Commercial and industrial | 0 | 48 |
Commercial, Construction and development | 0 | 1,076 |
Consumer: | ||
Consumer, Residential real estate | 0 | 21 |
Consumer, Construction and development | 0 | 0 |
Consumer, Home equity | 0 | 0 |
Consumer, Other consumer | 0 | 0 |
Total | $0 | $1,145 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L9
LOANS AND ALLOWANCE FOR LOAN LOSSES- Non Accrual Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $17,949 | $14,728 |
Loans greater than 90 days past due and accruing | 2 | 0 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 5,685 | 4,747 |
Loans greater than 90 days past due and accruing | 0 | 0 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 4,594 | 2,154 |
Loans greater than 90 days past due and accruing | 2 | 0 |
Commercial construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 1,692 | 2,632 |
Loans greater than 90 days past due and accruing | 0 | 0 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 3,755 | 2,450 |
Loans greater than 90 days past due and accruing | 0 | 0 |
Construction and development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 254 | 653 |
Loans greater than 90 days past due and accruing | 0 | 0 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 1,721 | 1,928 |
Loans greater than 90 days past due and accruing | 0 | 0 |
Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 248 | 164 |
Loans greater than 90 days past due and accruing | $0 | $0 |
Recovered_Sheet1
LOANS AND ALLOWANCE FOR LOAN LOSSES- Impaired Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $2,899,037 | $1,393,321 |
Non-PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 9,985 | 8,916 |
Related Allowance | 390 | 652 |
Unpaid Principal Balance | 15,802 | 10,229 |
Non-PCI Loans | With Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,472 | 1,402 |
Non-PCI Loans | With No Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 8,513 | 7,514 |
Non-PCI Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 5,398 | 4,590 |
Related Allowance | 158 | 57 |
Unpaid Principal Balance | 5,330 | 5,257 |
Non-PCI Loans | Commercial real estate | With Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 885 | 732 |
Non-PCI Loans | Commercial real estate | With No Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 4,513 | 3,858 |
Non-PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 2,343 | 343 |
Related Allowance | 229 | 323 |
Unpaid Principal Balance | 2,718 | 343 |
Non-PCI Loans | Commercial and industrial | With Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 525 | 323 |
Non-PCI Loans | Commercial and industrial | With No Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 1,818 | 20 |
Non-PCI Loans | Commercial construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 910 | 2,609 |
Related Allowance | 0 | 0 |
Unpaid Principal Balance | 1,971 | 3,042 |
Non-PCI Loans | Commercial construction | With Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Non-PCI Loans | Commercial construction | With No Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 910 | 2,609 |
Non-PCI Loans | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 928 | 695 |
Related Allowance | 0 | 0 |
Unpaid Principal Balance | 3,863 | 877 |
Non-PCI Loans | Residential real estate | With Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | 0 |
Non-PCI Loans | Residential real estate | With No Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 928 | 695 |
Non-PCI Loans | Construction and development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 242 | |
Related Allowance | 0 | |
Unpaid Principal Balance | 255 | |
Non-PCI Loans | Construction and development | With Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 0 | |
Non-PCI Loans | Construction and development | With No Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 242 | |
Non-PCI Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 406 | 424 |
Related Allowance | 3 | 270 |
Unpaid Principal Balance | 1,920 | 442 |
Non-PCI Loans | Home equity | With Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 62 | 334 |
Non-PCI Loans | Home equity | With No Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 344 | 90 |
Non-PCI Loans | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 13 | |
Related Allowance | 2 | |
Unpaid Principal Balance | 13 | |
Non-PCI Loans | Other consumer | With Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 13 | |
Non-PCI Loans | Other consumer | With No Related Allowance Recorded | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $0 |
Recovered_Sheet2
LOANS AND ALLOWANCE FOR LOAN LOSSES- Impaired Loans Average Balance and Interest Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | $16,434 | $6,750 | $2,968 |
Interest Income | 103 | 22 | 8 |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | 7,399 | 2,964 | 1,076 |
Interest Income | 75 | 22 | 0 |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | 2,599 | 144 | 0 |
Interest Income | 1 | 0 | 0 |
Commercial construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | 2,509 | 1,282 | 137 |
Interest Income | 0 | 0 | 0 |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | 2,616 | 1,029 | 766 |
Interest Income | 27 | 0 | 4 |
Construction and development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | 214 | 48 | 0 |
Interest Income | 0 | 0 | |
Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | 998 | 1,183 | 933 |
Interest Income | 0 | 0 | 4 |
Other consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | 99 | 100 | 56 |
Interest Income | $0 | $0 | $0 |
Recovered_Sheet3
LOANS AND ALLOWANCE FOR LOAN LOSSES- Troubled Debt Restructuring (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | |
TDR's Outstanding [Abstract] | ||
Recorded Investment | $6,371 | $1,232 |
Number (in loans) | 21 | 9 |
TDR's Modified [Abstract] | ||
TDRs Modified, Recorded Investment | 5,223 | 845 |
TDRs modified (in loans) | 10 | 6 |
TDR's Defaulted [Abstract] | ||
TDRs Defaulted, Recorded Investment | 1,102 | 60 |
TDRs Defaulted (in loans) | 5 | 2 |
Commercial real estate | ||
TDR's Outstanding [Abstract] | ||
Recorded Investment | 4,215 | 815 |
Number (in loans) | 7 | 2 |
TDR's Modified [Abstract] | ||
TDRs Modified, Recorded Investment | 3,460 | 534 |
TDRs modified (in loans) | 4 | 1 |
TDR's Defaulted [Abstract] | ||
TDRs Defaulted, Recorded Investment | 890 | 0 |
TDRs Defaulted (in loans) | 3 | 0 |
Commercial and industrial | ||
TDR's Outstanding [Abstract] | ||
Recorded Investment | 172 | 20 |
Number (in loans) | 4 | 1 |
TDR's Modified [Abstract] | ||
TDRs Modified, Recorded Investment | 105 | 0 |
TDRs modified (in loans) | 2 | 0 |
TDR's Defaulted [Abstract] | ||
TDRs Defaulted, Recorded Investment | 212 | |
TDRs Defaulted (in loans) | 2 | |
Commercial construction | ||
TDR's Outstanding [Abstract] | ||
Recorded Investment | 131 | 161 |
Number (in loans) | 2 | 1 |
TDR's Modified [Abstract] | ||
TDRs Modified, Recorded Investment | 0 | 161 |
TDRs modified (in loans) | 0 | 1 |
TDR's Defaulted [Abstract] | ||
TDRs Defaulted, Recorded Investment | 0 | 0 |
TDRs Defaulted (in loans) | 0 | 0 |
Residential real estate | ||
TDR's Outstanding [Abstract] | ||
Recorded Investment | 1,770 | 133 |
Number (in loans) | 6 | 2 |
TDR's Modified [Abstract] | ||
TDRs Modified, Recorded Investment | 1,658 | 47 |
TDRs modified (in loans) | 4 | 1 |
TDR's Defaulted [Abstract] | ||
TDRs Defaulted, Recorded Investment | 0 | 47 |
TDRs Defaulted (in loans) | 0 | 1 |
Home equity | ||
TDR's Outstanding [Abstract] | ||
Recorded Investment | 83 | 90 |
Number (in loans) | 2 | 2 |
TDR's Modified [Abstract] | ||
TDRs Modified, Recorded Investment | 0 | 90 |
TDRs modified (in loans) | 0 | 2 |
TDR's Defaulted [Abstract] | ||
TDRs Defaulted, Recorded Investment | 0 | 0 |
TDRs Defaulted (in loans) | 0 | 0 |
Consumer | ||
TDR's Outstanding [Abstract] | ||
Recorded Investment | 0 | 13 |
Number (in loans) | 0 | 1 |
TDR's Modified [Abstract] | ||
TDRs Modified, Recorded Investment | 0 | 13 |
TDRs modified (in loans) | 0 | 1 |
TDR's Defaulted [Abstract] | ||
TDRs Defaulted, Recorded Investment | $0 | $13 |
TDRs Defaulted (in loans) | 0 | 1 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Less: accumulated depreciation | ($8,913) | ($4,375) | |
Total | 80,379 | 44,875 | |
Depreciation on premises and equipment | 4,683 | 2,521 | 1,362 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 23,171 | 15,386 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 43,433 | 25,409 | |
Furniture, software, and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $22,688 | $8,455 |
LOAN_SERVICING_SBA_Servicing_A
LOAN SERVICING - SBA Servicing Asset (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Servicing Assets at Fair Value [Line Items] | |||
Government-guaranteed lending | $9,450,000 | $5,586,000 | $3,159,000 |
Mortgage Loan Servicing | |||
Servicing Assets at Fair Value [Line Items] | |||
Unpaid principal balance | 455,033,000 | ||
Mortgage servicing fees | 538,000 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Beginning balance | 0 | ||
Acquired Yadkin MSRs at fair value | 4,025,000 | ||
Additions | 688,000 | ||
Payoffs | -126,000 | ||
Amortization | -303,000 | ||
Ending balance | 4,284,000 | ||
Valuation allowance | -157,000 | ||
Balance at end of period after valuation allowance | 4,127,000 | ||
SBA Loans | |||
Servicing Assets at Fair Value [Line Items] | |||
Unpaid principal balance | 136,093,000 | ||
Government-guaranteed lending | 1,063,000 | 522,000 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Beginning balance | 1,759,000 | 976,000 | |
Additions | 1,628,000 | 995,000 | |
Amortization | -306,000 | -212,000 | |
Ending balance | 3,081,000 | 1,759,000 | |
Valuation allowance | $0 | $0 |
LOAN_SERVICING_Characteristics
LOAN SERVICING - Characteristics and Sensitivity of the Fair Value of MSRs (Details) (Mortgage Loan Servicing, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Servicing Liabilities at Fair Value [Line Items] | |
Composition of mortgage loans serviced for others (as a percent) | 100.00% |
Weighted average life (years) | 5 years 9 months 7 days |
Prepayment speed (as a percent) | 12.62% |
Discount rate (as a percent) | 9.60% |
0.25% | $566 |
0.50% | 801 |
-0.25% | -668 |
-0.50% | ($844) |
Fixed rate loans | |
Servicing Liabilities at Fair Value [Line Items] | |
Composition of mortgage loans serviced for others (as a percent) | 99.86% |
Adjustable rate loans | |
Servicing Liabilities at Fair Value [Line Items] | |
Composition of mortgage loans serviced for others (as a percent) | 0.14% |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Amounts of Intangible Assets (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill [Line Items] | ||||
Goodwill | $151,083,000 | $26,254,000 | $26,254,000 | $26,254,000 |
Finite-lived Intangible Assets [Roll Forward] | ||||
Core Deposit Intangible, Amortization expense | -2,157,000 | -800,000 | -448,000 | |
Tax basis in goodwill from mergers and acquisitions | 0 | |||
Tax deductible goodwill from acquisitions | 0 | |||
VantageSouth Bancshares, Inc. and Piedmont Community Bank Holdings, Inc. | ||||
Goodwill [Line Items] | ||||
Goodwill | 124,829,000 | |||
Core Deposits | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Core Deposit Intangible, Gross | 7,435,000 | 3,128,000 | 3,128,000 | |
Core Deposit Intangible, Gross | 20,386,000 | 7,435,000 | 3,128,000 | |
Core Deposit Intangible, Accumulated Amortization | -1,552,000 | -752,000 | -304,000 | |
Core Deposit Intangible, Amortization expense | -2,157,000 | -800,000 | -448,000 | |
Core Deposit Intangible, Accumulated Amortization | -3,709,000 | -1,552,000 | -752,000 | |
Core Deposit Intangible, Net | 16,677,000 | 5,883,000 | 2,376,000 | 2,824,000 |
Core Deposits | East Carolina Bancorp, Inc | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Core Deposit Intangible Balance from Merger | 4,307,000 | |||
Core deposit intangible from the ECB merger, weighted average useful life (in years) | 10 years | |||
Core Deposits | VantageSouth Bancshares, Inc. and Piedmont Community Bank Holdings, Inc. | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Core Deposit Intangible Balance from Merger | $12,951,000 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense (Details) (USD $) | 0 Months Ended | 12 Months Ended |
Oct. 31, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2015 | $3,098,000 | |
2016 | 2,775,000 | |
2017 | 2,485,000 | |
2018 | 2,202,000 | |
2019 | 1,915,000 | |
Thereafter | 4,202,000 | |
Total estimated amortization expense | 16,677,000 | |
Goodwill, impairment loss | 0 | |
Impairment of intangible assets, finite-lived | $0 |
BORROWINGS_ShortTerm_and_LongT
BORROWINGS Short-Term and Long-Term Borrowings (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2013 | Jul. 02, 2014 | |
Short-term borrowings: | ||||
FHLB advances maturing within one year | 250,500,000 | $126,500,000 | ||
Long-term debt: | ||||
FHLB advances maturing beyond one year | 104,651,000 | 19,299,000 | ||
Subordinated term loan due 2018 | 7,060,000 | 6,961,000 | ||
Subordinated notes due 2023 | 38,050,000 | 38,050,000 | 38,050,000 | |
Capital lease obligations and other debt | 5,972,000 | 3,051,000 | ||
Long-term debt | 180,164,000 | 72,921,000 | ||
Short-term borrowings | 250,500,000 | 126,500,000 | ||
Line of credit facility, fair value of amount outstanding | 0 | 0 | ||
Revolving Credit Facility | ||||
Long-term debt: | ||||
Line of credit facility, fair value of amount outstanding | 0 | |||
Line of Credit Facility, Current Borrowing Capacity | 10,000,000 | |||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Long-term debt: | ||||
Debt instrument, basis spread on variable rate | 4.00% | |||
Minimum | ||||
Long-term debt: | ||||
Percentage of collateral that may be borrowed (as a percent) | 60.00% | |||
Maximum | ||||
Long-term debt: | ||||
Percentage of collateral that may be borrowed (as a percent) | 65.00% | |||
Line of Credit | ||||
Long-term debt: | ||||
Loans pledged as collateral | 364,874,000 | |||
Federal Reserve Bank Advances | ||||
Long-term debt: | ||||
Long-term debt | 0 | 0 | ||
Federal Funds Purchased | Line of Credit | ||||
Long-term debt: | ||||
Short-term borrowings | 172,000,000 | |||
Maturing October 7, 2033 | ||||
Long-term debt: | ||||
Subordinated term loan | 5,629,000 | 5,560,000 | ||
Maturing December 15, 2033 | ||||
Long-term debt: | ||||
Subordinated term loan | 6,687,000 | 0 | ||
Maturing December 15, 2037 | ||||
Long-term debt: | ||||
Subordinated term loan | 12,115,000 | 0 | ||
Federal Reserve Bank Advances | Line of Credit | ||||
Long-term debt: | ||||
Loans pledged as collateral | 4,877,000 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Less than $250 | ||
Time Deposits, Less than $250,000, 2015 | $442,296 | |
Time Deposits, Less than $250,000, 2016 | 130,563 | |
Time Deposits, Less than $250,000, 2017 | 64,095 | |
Time Deposits, Less than $250,000, 2018 | 38,747 | |
Time Deposits, Less than $250,000, 2019 | 91,240 | |
Time Deposits, Less than $250,000, Thereafter | 4 | |
Total, Less than $250,000 | 766,945 | |
$250 and greater | ||
Time Deposits, $250,000 or More, 2015 | 152,763 | |
Time Deposits, $250,000 or More, 2016 | 57,967 | |
Time Deposits, $250,000 or More, 2017 | 38,355 | |
Time Deposits, $250,000 or More, 2018 | 35,913 | |
Time Deposits, $250,000 or More, 2019 | 40,340 | |
Time Deposits, $250,000 or More, Thereafter | 0 | |
Total, $250,000 or More | 325,338 | |
Total | ||
Total Time Deposits, 2015 | 595,059 | |
Total Time Deposits, 2016 | 188,530 | |
Total Time Deposits, 2017 | 102,450 | |
Total Time Deposits, 2018 | 74,660 | |
Total Time Deposits, 2019 | 131,580 | |
Total Time Deposits, Thereafter | 4 | |
Total | $1,092,283 | $634,915 |
BORROWINGS_Federal_Home_Loan_B
BORROWINGS Federal Home Loan Bank Advances (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Totals | $354,874 | $145,500 |
Yadkin Financial Corporation and East Carolina Bancorp, Inc. | ||
Debt Instrument [Line Items] | ||
Liabilities, fair value adjustment | 277 | 299 |
1/7/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 7-Jan-14 | |
Contractual Rate, maturities under one year (as a percent) | 0.20% | |
Maturities Summary, due in next twelve months | 0 | 20,000 |
1/22/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 22-Jan-14 | |
Contractual Rate, maturities under one year (as a percent) | 0.18% | |
Maturities Summary, due in next twelve months | 0 | 18,000 |
2/5/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 5-Feb-14 | |
Contractual Rate, maturities under one year (as a percent) | 0.21% | |
Maturities Summary, due in next twelve months | 0 | 25,000 |
3/5/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 5-Mar-14 | |
Contractual Rate, maturities under one year (as a percent) | 0.25% | |
Maturities Summary, due in next twelve months | 0 | 25,000 |
4/4/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 4-Apr-14 | |
Contractual Rate, maturities under one year (as a percent) | 0.23% | |
Maturities Summary, due in next twelve months | 0 | 25,000 |
8/4/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 4-Aug-14 | |
Contractual Rate, maturities under one year (as a percent) | 1.11% | |
Maturities Summary, due in next twelve months | 0 | 1,500 |
8/18/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 18-Aug-14 | |
Contractual Rate, maturities under one year (as a percent) | 1.49% | |
Maturities Summary, due in next twelve months | 0 | 3,000 |
8/20/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 20-Aug-14 | |
Contractual Rate, maturities under one year (as a percent) | 1.48% | |
Maturities Summary, due in next twelve months | 0 | 3,000 |
10/28/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 28-Oct-14 | |
Contractual Rate, maturities under one year (as a percent) | 0.91% | |
Maturities Summary, due in next twelve months | 0 | 2,000 |
12/16/14 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 16-Dec-14 | |
Contractual Rate, maturities under one year (as a percent) | 0.87% | |
Maturities Summary, due in next twelve months | 0 | 4,000 |
1/2/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2-Jan-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.25% | |
Maturities Summary, due in next twelve months | 20,000 | 0 |
1/5/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 5-Jan-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.20% | |
Maturities Summary, due in next twelve months | 25,000 | 0 |
1/12/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 12-Jan-15 | |
Contractual Rate, maturities under one year (as a percent) | 2.99% | |
Maturities Summary, due in next twelve months | 5,000 | 0 |
2/5/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 5-Feb-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.22% | |
Maturities Summary, due in next twelve months | 25,000 | 0 |
2/26/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 26-Feb-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.43% | |
Maturities Summary, due in next twelve months | 3,000 | 3,000 |
3/2/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 2-Mar-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.24% | |
Maturities Summary, due in next twelve months | 15,000 | 0 |
3/5/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 5-Mar-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.24% | |
Maturities Summary, due in next twelve months | 25,000 | 0 |
4/27/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 27-Apr-15 | |
Contractual Rate, maturities under one year (as a percent) | 2.97% | |
Maturities Summary, due in next twelve months | 5,000 | 0 |
4/30/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 30-Apr-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.28% | |
Maturities Summary, due in next twelve months | 25,000 | 0 |
6/26/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 26-Jun-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.26% | |
Maturities Summary, due in next twelve months | 10,000 | 0 |
7/15/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 15-Jul-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.31% | |
Maturities Summary, due in next twelve months | 20,000 | 0 |
8/5/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 5-Aug-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.31% | |
Maturities Summary, due in next twelve months | 15,000 | 0 |
8/5/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 5-Aug-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.30% | |
Maturities Summary, due in next twelve months | 10,000 | 0 |
8/17/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 17-Aug-15 | |
Contractual Rate, maturities under one year (as a percent) | 1.85% | |
Maturities Summary, due in next twelve months | 4,500 | 4,500 |
8/20/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 20-Aug-15 | |
Contractual Rate, maturities under one year (as a percent) | 1.83% | |
Maturities Summary, due in next twelve months | 3,000 | 3,000 |
10/1/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 1-Oct-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.35% | |
Maturities Summary, due in next twelve months | 10,000 | 0 |
11/16/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 16-Nov-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.41% | |
Maturities Summary, due in next twelve months | 10,000 | 0 |
12/1/15 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 1-Dec-15 | |
Contractual Rate, maturities under one year (as a percent) | 0.43% | |
Maturities Summary, due in next twelve months | 20,000 | 0 |
1/4/16 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 4-Jan-16 | |
Contractual Rate, maturities under one year (as a percent) | 0.50% | |
Maturities Summary, due in next twelve months | 15,000 | 0 |
2/5/16 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 5-Feb-16 | |
Contractual Rate, maturities under one year (as a percent) | 0.57% | |
Maturities Summary, due in next twelve months | 25,000 | 0 |
2/16/16 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 16-Feb-16 | |
Contractual Rate, maturities under one year (as a percent) | 0.48% | |
Maturities Summary, due in next twelve months | 10,000 | 0 |
2/26/16 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 26-Feb-16 | |
Contractual Rate, maturities under one year (as a percent) | 0.61% | |
Maturities Summary, due in next twelve months | 3,000 | 3,000 |
4/1/16 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 1-Apr-16 | |
Contractual Rate, maturities under one year (as a percent) | 0.51% | |
Maturities Summary, due in next twelve months | 15,000 | 0 |
7/1/16 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 1-Jul-16 | |
Contractual Rate, maturities under one year (as a percent) | 0.70% | |
Maturities Summary, due in next twelve months | 20,000 | 0 |
8/17/16 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 17-Aug-16 | |
Contractual Rate, maturities under one year (as a percent) | 2.21% | |
Maturities Summary, due in next twelve months | 2,500 | 2,500 |
2/27/17 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 27-Feb-17 | |
Contractual Rate, maturities under one year (as a percent) | 0.82% | |
Maturities Summary, due in next twelve months | 3,000 | 3,000 |
10/16/17 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 16-Oct-17 | |
Contractual Rate, maturities under one year (as a percent) | 1.14% | |
Maturities Summary, due in next twelve months | 5,000 | 0 |
10/29/18 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 29-Oct-18 | |
Contractual Rate, maturities under one year (as a percent) | 0.25% | |
Maturities Summary, due in next twelve months | 667 | 0 |
10/15/19 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 15-Oct-19 | |
Contractual Rate, maturities under one year (as a percent) | 1.83% | |
Maturities Summary, due in next twelve months | 5,000 | 0 |
12/19/23 | ||
Debt Instrument [Line Items] | ||
Maturity Date | 19-Dec-23 | |
Contractual Rate, maturities under one year (as a percent) | 2.00% | |
Maturities Summary, due in next twelve months | 207 | 0 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Loans pledged as collateral | 364,874 | |
Line of Credit | Federal Home Loan Bank, Advances, Branch of FHLB Bank, Georgia | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $159,752 |
BORROWINGS_Subordinated_Term_L
BORROWINGS Subordinated Term Loans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2008 |
Debt Instrument [Line Items] | |||
Long-term debt | $180,164 | $72,921 | |
Subordinated term loan due 2018 | 7,060 | 6,961 | |
Unsecured Subordinated Term Loan Effective September 26 2008 | LIBOR Plus Four Percent | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 4.00% | ||
Unsecured Subordinated Term Loan Effective September 26 2008 | Unsecured Subordinated Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | $6,961 | $7,500 | |
Phase out of capital qualification term | 5 years |
BORROWINGS_Subordinated_Notes_
BORROWINGS Subordinated Notes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2013 |
Debt Instrument [Line Items] | |||
Subordinated notes due 2023 | 38,050 | $38,050 | $38,050 |
Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Stated rate | 7.63% | ||
Phase out of capital qualification term | 5 years |
BORROWINGS_Junior_Subordinated
BORROWINGS Junior Subordinated Debentures (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2007 | Aug. 31, 2003 |
London Interbank Offered Rate (LIBOR) | Trust Preferred Securities | Crescent Financial Capital Trust I | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Debt instrument, basis spread on variable rate | 3.10% | |||
London Interbank Offered Rate (LIBOR) | Trust Preferred Securities | American Community Capital Trust II, Ltd | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.80% | |||
London Interbank Offered Rate (LIBOR) | Trust Preferred Securities | Yadkin Valley Statutory Trust I | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.32% | |||
Maturing October 7, 2033 | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Subordinated term loan | 5,629 | $5,560 | ||
Trust Preferred Securities Subject to Mandatory Redemption | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Financial instruments subject to mandatory redemption, settlement terms, fair value of shares | $10,000 | $25,000 | $8,000 |
LEASES_Future_Minimum_Lease_Pa
LEASES - Future Minimum Lease Payments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due | |
2015 | $4,066 |
2016 | 3,573 |
2017 | 3,103 |
2018 | 2,925 |
2019 | 2,114 |
Thereafter | 5,354 |
Total | 21,135 |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | |
2015 | 564 |
2016 | 571 |
2017 | 580 |
2018 | 588 |
2019 | 598 |
Thereafter | 6,623 |
Total projected lease payments for capital leases | 9,524 |
Imputed interest | -3,552 |
Present value of minimum lease payments | $5,972 |
LEASES_Additional_Disclosures_
LEASES - Additional Disclosures (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
property | |||
Capital_lease | |||
Operating_lease | |||
Operating Leased Assets [Line Items] | |||
Number of non-cancelable operating leases (in number of leases) | 40 | ||
Operating leases, rent expense | $4,048 | $2,818 | $2,490 |
Number of properties leased from related parties (in number of leases) | 2 | ||
Number of capital leases | 2 | ||
Capital lease obligations, noncurrent | 5,972 | 3,051 | |
Related Party | |||
Operating Leased Assets [Line Items] | |||
Operating leases, rent expense | $760 | $755 | $729 |
INCOME_TAXES_Significant_Compo
INCOME TAXES - Significant Components of the Provision for Income Taxes ( (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax expense: | |||
Federal | $305 | $0 | $69 |
State | 0 | 0 | 0 |
Total current tax expense | 305 | 0 | 69 |
Deferred tax expense (benefit): | |||
Federal | 7,924 | 432 | -1,163 |
State | 1,981 | 2,042 | -253 |
Total deferred tax expense (benefit) | 9,905 | 2,474 | -1,416 |
Income tax expense (benefit) before change in deferred tax asset valuation allowance | 10,210 | 2,474 | -1,347 |
Change in deferred tax asset valuation allowance | -4,797 | -460 | -1,869 |
Income tax expense (benefit) | $5,413 | $2,014 | ($3,216) |
INCOME_TAXES_Income_Tax_Rate_R
INCOME TAXES - Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Tax computed at statutory rate of 35% | $9,491 | $2,815 | ($815) |
Effect of state income taxes | 1,287 | 1,348 | 11 |
Change in income tax rates | -1,899 | 1,544 | 0 |
Gain on acquisition | 0 | -2,643 | 0 |
Non-taxable interest income | -437 | -79 | -189 |
Non-taxable bank-owned life insurance | -549 | -348 | -247 |
Non-deductible merger costs | 1,006 | 309 | 488 |
Write-off of acquired net operating losses subject to Section 382 limitation | 652 | 0 | 0 |
Change in deferred tax asset valuation allowance | -4,797 | -460 | -1,869 |
Other | 659 | -472 | -595 |
Income tax expense (benefit) | $5,413 | $2,014 | ($3,216) |
INCOME_TAXES_Significant_Compo1
INCOME TAXES - Significant Components of Deferred Taxes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carryforward | $40,073 | $32,734 |
Recognized built-in loss carryforward | 7,580 | 6,570 |
Acquisition accounting fair value adjustments | 12,229 | 12,330 |
Allowance for loan losses | 2,990 | 2,499 |
Federal tax credits carryforward | 3,140 | 1,282 |
Unrealized losses on securities | 667 | 4,109 |
Unrealized losses on cash flow hedges | 728 | 0 |
Stock-based compensation | 2,094 | 1,808 |
Capitalized leases | 1,167 | 0 |
Deferred compensation | 3,024 | 117 |
Other | 2,942 | 497 |
Total deferred tax assets | 76,634 | 61,946 |
Valuation allowance | -1,185 | -5,130 |
Deferred tax asset, net | 75,449 | 56,816 |
Deferred tax liabilities: | ||
Unrealized gains on cash flow hedges | 0 | 1,490 |
Premises and equipment | 2,568 | 203 |
Prepaid expenses | 478 | 256 |
Total deferred tax liabilities | 3,046 | 1,949 |
Net deferred tax asset | $72,403 | $54,867 |
INCOME_TAXES_Net_Operating_Los
INCOME TAXES - Net Operating Losses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $102,866 | ||
Operating loss carryforward, recognized built-in losses in excess of annual tax limitations | 21,658 | ||
Net operating loss carryforwards, subject to expiration | 1,917 | ||
Period of cumulative pre-tax income position | 3 years | ||
Classified asset ratio to tier one capital plus allowance for loan losses (in percent) | 22.00% | 30.00% | |
Change in deferred tax asset valuation allowance | 4,797 | 460 | 1,869 |
Valuation allowance | -1,185 | -5,130 | |
Piedmont Community Bank Holdings Inc | |||
Operating Loss Carryforwards [Line Items] | |||
Change in deferred tax asset valuation allowance | $4,706 |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Aggregate net reserve balance | $0 | $0 |
Yadkin Financial Corporation | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | 425,720,000 | |
Capital to Risk Weighted Assets (as a percentage) | 12.34% | |
Capital Required for Capital Adequacy | 276,064,000 | |
Capital Required for Capital Adequacy to Risk Weighted Assets (as a percentage) | 8.00% | |
Tier One Risk Based Capital | 375,095,000 | |
Tier One Risk Based Capital to Risk Weighted Assets (as a percentage) | 10.87% | |
Tier One Risk Based Capital Required for Capital Adequacy | 138,032,000 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (as a percentage) | 4.00% | |
Tier One Leverage Capital | 375,095,000 | |
Tier One Leverage Capital to Average Assets (as a percentage) | 9.33% | |
Tier One Leverage Capital Required for Capital Adequacy | 160,773,000 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (as a percentage) | 4.00% | |
Yadkin Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | 419,875,000 | |
Capital to Risk Weighted Assets (as a percentage) | 12.18% | |
Capital Required for Capital Adequacy | 275,674,000 | |
Capital Required for Capital Adequacy to Risk Weighted Assets (as a percentage) | 8.00% | |
Capital Required to be Well Capitalized | 344,592,000 | |
Capital Required to be Well Capitalized to Risk Weighted Assets (as a percentage) | 10.00% | |
Tier One Risk Based Capital | 407,300,000 | |
Tier One Risk Based Capital to Risk Weighted Assets (as a percentage) | 11.82% | |
Tier One Risk Based Capital Required for Capital Adequacy | 137,837,000 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (as a percentage) | 4.00% | |
Tier One Risk Based Capital Required to be Well Capitalized | 206,755,000 | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets (as a percentage) | 6.00% | |
Tier One Leverage Capital | 407,300,000 | |
Tier One Leverage Capital to Average Assets (as a percentage) | 10.13% | |
Tier One Leverage Capital Required for Capital Adequacy | 160,812,000 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (as a percentage) | 4.00% | |
Tier One Leverage Capital Required to be Well Capitalized | 201,015,000 | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets (as a percentage) | 5.00% | |
Piedmont Community Bank Holdings Inc | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | 225,995,000 | |
Capital to Risk Weighted Assets (as a percentage) | 13.21% | |
Capital Required for Capital Adequacy | 136,834,000 | |
Capital Required for Capital Adequacy to Risk Weighted Assets (as a percentage) | 8.00% | |
Tier One Risk Based Capital | 173,495,000 | |
Tier One Risk Based Capital to Risk Weighted Assets (as a percentage) | 10.14% | |
Tier One Risk Based Capital Required for Capital Adequacy | 68,417,000 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (as a percentage) | 4.00% | |
Tier One Leverage Capital | 173,495,000 | |
Tier One Leverage Capital to Average Assets (as a percentage) | 8.70% | |
Tier One Leverage Capital Required for Capital Adequacy | 79,747,000 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (as a percentage) | 4.00% | |
VantageSouth Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital | 216,650,000 | |
Capital to Risk Weighted Assets (as a percentage) | 12.70% | |
Capital Required for Capital Adequacy | 136,486,000 | |
Capital Required for Capital Adequacy to Risk Weighted Assets (as a percentage) | 8.00% | |
Capital Required to be Well Capitalized | 170,608,000 | |
Capital Required to be Well Capitalized to Risk Weighted Assets (as a percentage) | 10.00% | |
Tier One Risk Based Capital | 202,200,000 | |
Tier One Risk Based Capital to Risk Weighted Assets (as a percentage) | 11.85% | |
Tier One Risk Based Capital Required for Capital Adequacy | 68,243,000 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (as a percentage) | 4.00% | |
Tier One Risk Based Capital Required to be Well Capitalized | 102,365,000 | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets (as a percentage) | 6.00% | |
Tier One Leverage Capital | 202,200,000 | |
Tier One Leverage Capital to Average Assets (as a percentage) | 10.16% | |
Tier One Leverage Capital Required for Capital Adequacy | 79,620,000 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (as a percentage) | 4.00% | |
Tier One Leverage Capital Required to be Well Capitalized | $99,525,000 | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets (as a percentage) | 5.00% |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS - Terms of Interest Swaps and Caps (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | 31-May-12 | Aug. 31, 2014 | 31-May-13 |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | $225,000 | |||
Swap 1 | ||||
Derivative [Line Items] | ||||
Notional Amount | 25,000 | |||
Effective Start Date | 6-Apr-15 | |||
Maturity Date | 5-Apr-20 | |||
Pay Fixed Rate | 1.65% | |||
Swap 2 | ||||
Derivative [Line Items] | ||||
Notional Amount | 25,000 | |||
Effective Start Date | 5-May-15 | |||
Maturity Date | 5-May-20 | |||
Pay Fixed Rate | 1.68% | |||
Swap 3 | ||||
Derivative [Line Items] | ||||
Notional Amount | 25,000 | |||
Effective Start Date | 5-Jun-15 | |||
Maturity Date | 5-Jun-20 | |||
Pay Fixed Rate | 1.72% | |||
Swap 4 | ||||
Derivative [Line Items] | ||||
Notional Amount | 25,000 | |||
Effective Start Date | 5-Aug-15 | |||
Maturity Date | 5-Aug-20 | |||
Pay Fixed Rate | 2.44% | |||
Swap 5 | ||||
Derivative [Line Items] | ||||
Notional Amount | 25,000 | |||
Effective Start Date | 5-Feb-16 | |||
Maturity Date | 5-Feb-21 | |||
Pay Fixed Rate | 2.70% | |||
Swap 6 | ||||
Derivative [Line Items] | ||||
Notional Amount | 50,000 | |||
Effective Start Date | 5-Aug-16 | |||
Maturity Date | 5-Aug-21 | |||
Pay Fixed Rate | 2.88% | |||
Swap 7 | ||||
Derivative [Line Items] | ||||
Notional Amount | 25,000 | |||
Effective Start Date | 1-Oct-14 | |||
Maturity Date | 31-Aug-17 | |||
Pay Fixed Rate | 1.20% | |||
Swap 7 | 1-Month LIBOR | ||||
Derivative [Line Items] | ||||
Variable rate spread (as a percentage) | 0.10% | |||
Swap 8 | ||||
Derivative [Line Items] | ||||
Notional Amount | 25,000 | |||
Effective Start Date | 16-Oct-14 | |||
Maturity Date | 16-Aug-18 | |||
Pay Fixed Rate | 1.60% | |||
Swap 8 | 1-Month LIBOR | ||||
Derivative [Line Items] | ||||
Variable rate spread (as a percentage) | 0.13% | |||
Interest rate caps | ||||
Derivative [Line Items] | ||||
Notional Amount | 50,500 | |||
Cap 1 | ||||
Derivative [Line Items] | ||||
Notional Amount | 7,500 | 7,500 | ||
Effective Start Date | 1-Jul-12 | |||
Maturity Date | 1-Jul-17 | |||
Strike Rate | 0.47% | |||
Cap 1 | 3-Month LIBOR | ||||
Derivative [Line Items] | ||||
Variable rate spread (as a percentage) | 4.00% | |||
Cap 2 | ||||
Derivative [Line Items] | ||||
Notional Amount | 8,000 | 8,000 | ||
Effective Start Date | 7-Jul-12 | |||
Maturity Date | 7-Jul-17 | |||
Strike Rate | 0.47% | |||
Cap 2 | 3-Month LIBOR | ||||
Derivative [Line Items] | ||||
Variable rate spread (as a percentage) | 3.10% | |||
Cap 3 | ||||
Derivative [Line Items] | ||||
Notional Amount | 25,000 | 25,000 | ||
Effective Start Date | 15-Sep-14 | |||
Maturity Date | 15-Sep-19 | |||
Strike Rate | 1.82% | |||
Cap 3 | 3-Month LIBOR | ||||
Derivative [Line Items] | ||||
Variable rate spread (as a percentage) | 1.32% | |||
Cap 4 | ||||
Derivative [Line Items] | ||||
Notional Amount | 10,000 | 10,000 | ||
Effective Start Date | 30-Sep-14 | |||
Maturity Date | 30-Sep-19 | |||
Strike Rate | 1.85% | |||
Cap 4 | 3-Month LIBOR | ||||
Derivative [Line Items] | ||||
Variable rate spread (as a percentage) | 2.80% | |||
FHLB Advances | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | 100,000 | 75,000 | ||
Brokered Money Market Deposits | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Number of interest rate swaps | 2 | |||
Notional Amount | $50,000 |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS - Balance Sheet Location and Fair Value of Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest rate swaps | FHLB Advances | Other assets | ||
Notional Amount | $75,000 | $75,000 |
Fair Value | 795 | 3,962 |
Interest rate swaps | FHLB Advances | Other liabilities | ||
Notional Amount | 100,000 | 0 |
Fair Value | 2,249 | 0 |
Interest rate swaps | Brokered Money Market Deposits | Other liabilities | ||
Notional Amount | 50,000 | 0 |
Fair Value | 200 | 0 |
Interest rate caps | Subordinated Term Loan | Other assets | ||
Notional Amount | 7,500 | 7,500 |
Fair Value | 128 | 193 |
Interest rate caps | Trust Preferred Securities | Other assets | ||
Notional Amount | 43,000 | 8,000 |
Fair Value | 1,104 | 208 |
Interest rate lock commitments | Mortgage Loan Commitments | Other assets | ||
Notional Amount | 23,274 | 17,654 |
Fair Value | 342 | 354 |
Forward sale commitments | Mortgage Loan Commitments | Other liabilities | ||
Notional Amount | 34,727 | 0 |
Fair Value | $49 | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Lending commitments: | ||
Commitments to extend credit | $658,925 | $293,371 |
Financial standby letters of credit | 12,421 | 8,571 |
Other commitments: | ||
Standby letters of credit issued by the FHLB on the Bank's behalf | 10,000 | 10,000 |
Capital commitments to private investment funds | 2,280 | 1,744 |
Reserve for unfunded commitments | $522 | $281 |
FAIR_VALUE_MEASUREMENTS_Change
FAIR VALUE MEASUREMENTS- Change in Fair Value of Available for Sale Securities (Details) (Available-for-sale Securities, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Level 3 AFS securities at beginning of period | $7,583 | $0 | $0 |
Purchases | 4,600 | 7,505 | 0 |
Sales, calls or maturities | -1,000 | 0 | 0 |
Changes in unrealized gains and losses | 107 | 78 | 0 |
Level 3 AFS securities at end of period | $11,290 | $7,583 | $0 |
FAIR_VALUE_MEASUREMENTS_Change1
FAIR VALUE MEASUREMENTS- Change in Fair Value of Interest Rate Commitments (Details) (Interest rate lock commitments, Level 3, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest rate lock commitments | Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Interest rate lock commitments at beginning of period | $354 | $795 | $212 |
Fair value of acquired Yadkin interest rate lock commitments | 231 | 0 | 0 |
Issuances | 2,366 | 2,909 | 2,600 |
Settlements | -2,609 | -3,350 | -2,017 |
Interest rate lock commitments at end of period | $342 | $354 | $795 |
FAIR_VALUE_MEASUREMENTS_Assets
FAIR VALUE MEASUREMENTS- Assets and Liabilities on Recurring and Nonrecurring Basis and Level 3 Valuation Measurements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investment securities available for sale | $672,421 | $404,388 |
Derivative assets | 2,368 | 4,717 |
Derivative liabilities | 2,497 | |
Foreclosed assets | 12,891 | 10,518 |
Level 1 | ||
Investment securities available for sale | 66,028 | 67,176 |
SBA loans held for investment | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Level 2 | ||
Investment securities available for sale | 595,103 | 329,629 |
SBA loans held for investment | 40,404 | 0 |
Derivative assets | 2,027 | 4,363 |
Derivative liabilities | 2,497 | |
Level 3 | ||
Investment securities available for sale | 11,290 | 7,583 |
SBA loans held for investment | 0 | 500 |
Derivative assets | 342 | 354 |
Derivative liabilities | 0 | |
Recurring | Level 1 | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Recurring | Level 1 | GSE obligations | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 1 | SBA-guaranteed securities | ||
Investment securities available for sale | 60,120 | 65,880 |
SBA-guaranteed loans held for sale | 0 | |
SBA loans held for investment | 0 | |
Recurring | Level 1 | Mortgage-backed securities issued by GSE | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Investment securities available for sale | 2,545 | 0 |
Recurring | Level 1 | Non-agency RMBS | ||
Investment securities available for sale | 0 | |
Recurring | Level 1 | Non-agency CMBS | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Municipal bonds | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Other debt securities | ||
Investment securities available for sale | 498 | 253 |
Recurring | Level 1 | Marketable equity securities | ||
Investment securities available for sale | 2,865 | 1,043 |
Recurring | Level 2 | ||
Derivative assets | 2,027 | 4,363 |
Recurring | Level 2 | GSE obligations | ||
Investment securities available for sale | 14,944 | 14,673 |
Recurring | Level 2 | SBA-guaranteed securities | ||
Investment securities available for sale | 0 | 0 |
SBA-guaranteed loans held for sale | 8,365 | |
SBA loans held for investment | 8,906 | |
Recurring | Level 2 | Mortgage-backed securities issued by GSE | ||
Investment securities available for sale | 425,283 | 205,260 |
Recurring | Level 2 | Corporate bonds | ||
Investment securities available for sale | 106,077 | 103,157 |
Recurring | Level 2 | Non-agency RMBS | ||
Investment securities available for sale | 4,963 | |
Recurring | Level 2 | Non-agency CMBS | ||
Investment securities available for sale | 3,578 | 5,938 |
Recurring | Level 2 | Municipal bonds | ||
Investment securities available for sale | 40,258 | 601 |
Recurring | Level 2 | Other debt securities | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 2 | Marketable equity securities | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | ||
Derivative assets | 342 | 354 |
Recurring | Level 3 | Available-for-sale Securities | Pricing model | ||
Investment securities available for sale | 11,290 | 7,583 |
Valuation Technique | Pricing model | |
Unobservable Input | Illiquidity or credit factor in discount rates | |
Recurring | Level 3 | Available-for-sale Securities | Pricing model | Minimum | ||
Illiquidity of credit (as a percentage) | 1.00% | |
Recurring | Level 3 | Available-for-sale Securities | Pricing model | Maximum | ||
Illiquidity of credit (as a percentage) | 2.00% | |
Recurring | Level 3 | Interest rate lock commitments | Pricing model | ||
Interest rate derivative assets, at fair value | 342 | 354 |
Valuation Technique | Pricing model | |
Unobservable Input | Pull through rates | |
Recurring | Level 3 | Interest rate lock commitments | Pricing model | Minimum | ||
Pull through rates (as a percentage) | 80.00% | |
Recurring | Level 3 | Interest rate lock commitments | Pricing model | Maximum | ||
Pull through rates (as a percentage) | 95.00% | |
Recurring | Level 3 | GSE obligations | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | SBA-guaranteed securities | ||
Investment securities available for sale | 0 | 0 |
SBA-guaranteed loans held for sale | 0 | |
SBA loans held for investment | 0 | |
Recurring | Level 3 | Mortgage-backed securities issued by GSE | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Corporate bonds | ||
Investment securities available for sale | 11,290 | 7,583 |
Recurring | Level 3 | Non-agency RMBS | ||
Investment securities available for sale | 0 | |
Recurring | Level 3 | Non-agency CMBS | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Municipal bonds | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Other debt securities | ||
Investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Marketable equity securities | ||
Investment securities available for sale | 0 | 0 |
Nonrecurring | Level 1 | Mortgage servicing rights | ||
Mortgage Servicing Rights | 0 | |
Nonrecurring | Level 1 | Impaired loans | ||
Impaired loans | 0 | 0 |
Nonrecurring | Level 1 | Foreclosed assets | ||
Foreclosed assets | 0 | 0 |
Nonrecurring | Level 2 | Mortgage servicing rights | ||
Mortgage Servicing Rights | 0 | |
Nonrecurring | Level 2 | Impaired loans | ||
Impaired loans | 0 | 0 |
Nonrecurring | Level 2 | Foreclosed assets | ||
Foreclosed assets | 0 | 0 |
Nonrecurring | Level 3 | Mortgage servicing rights | ||
Mortgage Servicing Rights | 4,127 | |
Nonrecurring | Level 3 | Impaired loans | ||
Impaired loans | 9,595 | 8,264 |
Nonrecurring | Level 3 | Impaired loans | Discounted appraisals | ||
Valuation Technique | Discounted appraisals | |
Unobservable Input | Collateral discounts | |
Nonrecurring | Level 3 | Impaired loans | Discounted appraisals | Minimum | ||
Collateral discounts (as a percentage) | 15.00% | |
Nonrecurring | Level 3 | Impaired loans | Discounted appraisals | Maximum | ||
Collateral discounts (as a percentage) | 50.00% | |
Nonrecurring | Level 3 | Impaired loans | Discounted expected cash flows | ||
Valuation Technique | Discounted expected cash flows | |
Unobservable Input | Expected loss rates | |
Nonrecurring | Level 3 | Impaired loans | Discounted expected cash flows | Minimum | ||
Expected loss rates (as a percentage) | 0.00% | |
Discount rates (as a percent) | 2.00% | |
Nonrecurring | Level 3 | Impaired loans | Discounted expected cash flows | Maximum | ||
Expected loss rates (as a percentage) | 75.00% | |
Discount rates (as a percent) | 8.00% | |
Nonrecurring | Level 3 | Impaired loans | Discount rates | ||
Unobservable Input | Discount rates | |
Nonrecurring | Level 3 | Foreclosed assets | ||
Foreclosed assets | 12,891 | |
Nonrecurring | Level 3 | Foreclosed assets | Discounted appraisals | ||
Foreclosed assets | 12,891 | 10,823 |
Valuation Technique | Discounted appraisals | |
Unobservable Input | Collateral discounts | |
Nonrecurring | Level 3 | Foreclosed assets | Discounted appraisals | Minimum | ||
Collateral discounts (as a percentage) | 15.00% | |
Nonrecurring | Level 3 | Foreclosed assets | Discounted appraisals | Maximum | ||
Collateral discounts (as a percentage) | 50.00% | |
Estimate of Fair Value Measurement | ||
Investment securities available for sale | 672,421 | 404,388 |
SBA loans held for investment | 40,404 | 500 |
Derivative assets | 2,368 | 4,717 |
Derivative liabilities | 2,497 | |
Estimate of Fair Value Measurement | Recurring | ||
Derivative assets | 2,368 | 4,717 |
Estimate of Fair Value Measurement | Recurring | GSE obligations | ||
Investment securities available for sale | 14,944 | 14,673 |
Estimate of Fair Value Measurement | Recurring | SBA-guaranteed securities | ||
Investment securities available for sale | 60,120 | 65,880 |
SBA-guaranteed loans held for sale | 8,365 | |
SBA loans held for investment | 8,906 | |
Estimate of Fair Value Measurement | Recurring | Mortgage-backed securities issued by GSE | ||
Investment securities available for sale | 425,283 | 205,260 |
Estimate of Fair Value Measurement | Recurring | Corporate bonds | ||
Investment securities available for sale | 119,912 | 110,740 |
Estimate of Fair Value Measurement | Recurring | Non-agency RMBS | ||
Investment securities available for sale | 4,963 | |
Estimate of Fair Value Measurement | Recurring | Non-agency CMBS | ||
Investment securities available for sale | 3,578 | 5,938 |
Estimate of Fair Value Measurement | Recurring | Municipal bonds | ||
Investment securities available for sale | 40,258 | 601 |
Estimate of Fair Value Measurement | Recurring | Other debt securities | ||
Investment securities available for sale | 498 | 253 |
Estimate of Fair Value Measurement | Recurring | Marketable equity securities | ||
Investment securities available for sale | 2,865 | 1,043 |
Estimate of Fair Value Measurement | Nonrecurring | Mortgage servicing rights | ||
Mortgage Servicing Rights | 4,127 | |
Estimate of Fair Value Measurement | Nonrecurring | Impaired loans | ||
Impaired loans | 9,595 | 8,264 |
Estimate of Fair Value Measurement | Nonrecurring | Foreclosed assets | ||
Foreclosed assets | 12,891 | 10,823 |
Interest rate swaps | Recurring | Level 2 | ||
Derivative liabilities | 2,497 | |
Interest rate swaps | Estimate of Fair Value Measurement | Recurring | ||
Derivative liabilities | $2,497 |
FAIR_VALUE_MEASUREMENTS_Carryi
FAIR VALUE MEASUREMENTS- Carrying Amounts and Fair Values of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financial assets: | ||||
Cash and cash equivalents | $132,365 | $100,780 | $50,513 | $58,666 |
Investment securities available for sale | 672,421 | 404,388 | ||
Investment securities held to maturity | 39,620 | 500 | ||
Loans held for sale | 20,205 | 8,663 | ||
Loans, net | 2,890,449 | 1,385,790 | ||
Federal Home Loan Bank stock | 19,499 | 8,929 | ||
Bank-owned life insurance | 76,990 | 33,148 | ||
Derivative assets | 2,368 | 4,717 | ||
Purchased accounts receivable | 44,821 | 18,725 | ||
Accrued interest receivable | 12,071 | 5,356 | ||
Financial liabilities: | ||||
Deposits | 3,247,364 | 1,672,231 | ||
Short-term borrowings | 250,500 | 126,500 | ||
Long-term debt | 180,164 | 72,921 | ||
Derivative liabilities | 2,497 | |||
Accrued interest payable | 2,688 | 1,817 | ||
Level 1 | ||||
Financial assets: | ||||
Cash and cash equivalents, Fair Value | 132,365 | 100,780 | ||
Investment securities available for sale | 66,028 | 67,176 | ||
Investment securities held to maturity, Fair Value | 0 | 0 | ||
Loans held for sale, Fair Value | 0 | 0 | ||
Loans, net, Fair Value | 0 | 0 | ||
Federal Home Loan Bank stock, at cost | 0 | 0 | ||
Bank-owned life insurance, fair value | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Purchased accounts receivable, fair value | 0 | 0 | ||
Accrued interest receivable, Fair Value | 0 | 0 | ||
Financial liabilities: | ||||
Deposits, Fair Value | 0 | 0 | ||
Short term borrowings, Fair Value | 0 | 0 | ||
Long-term debt, Fair Value | 0 | 0 | ||
Derivative liabilities | 0 | |||
Accrued interest payable, Fair Value | 0 | 0 | ||
Level 2 | ||||
Financial assets: | ||||
Cash and cash equivalents, Fair Value | 0 | 0 | ||
Investment securities available for sale | 595,103 | 329,629 | ||
Investment securities held to maturity, Fair Value | 40,404 | 0 | ||
Loans held for sale, Fair Value | 20,205 | 8,663 | ||
Loans, net, Fair Value | 1,241 | 0 | ||
Federal Home Loan Bank stock, at cost | 19,499 | 8,929 | ||
Bank-owned life insurance, fair value | 76,990 | 33,148 | ||
Derivative assets | 2,027 | 4,363 | ||
Purchased accounts receivable, fair value | 44,821 | 18,725 | ||
Accrued interest receivable, Fair Value | 12,071 | 5,356 | ||
Financial liabilities: | ||||
Deposits, Fair Value | 3,245,431 | 1,674,175 | ||
Short term borrowings, Fair Value | 0 | 0 | ||
Long-term debt, Fair Value | 0 | 0 | ||
Derivative liabilities | 2,497 | |||
Accrued interest payable, Fair Value | 2,688 | 1,817 | ||
Level 3 | ||||
Financial assets: | ||||
Cash and cash equivalents, Fair Value | 0 | 0 | ||
Investment securities available for sale | 11,290 | 7,583 | ||
Investment securities held to maturity, Fair Value | 0 | 500 | ||
Loans held for sale, Fair Value | 0 | 0 | ||
Loans, net, Fair Value | 2,918,332 | 1,380,437 | ||
Federal Home Loan Bank stock, at cost | 0 | 0 | ||
Bank-owned life insurance, fair value | 0 | 0 | ||
Derivative assets | 342 | 354 | ||
Purchased accounts receivable, fair value | 0 | 0 | ||
Accrued interest receivable, Fair Value | 0 | 0 | ||
Financial liabilities: | ||||
Deposits, Fair Value | 0 | 0 | ||
Short term borrowings, Fair Value | 250,500 | 126,726 | ||
Long-term debt, Fair Value | 183,326 | 72,397 | ||
Derivative liabilities | 0 | |||
Accrued interest payable, Fair Value | 0 | 0 | ||
Estimate of Fair Value Measurement | ||||
Financial assets: | ||||
Cash and cash equivalents, Fair Value | 132,365 | 100,780 | ||
Investment securities available for sale | 672,421 | 404,388 | ||
Investment securities held to maturity, Fair Value | 40,404 | 500 | ||
Loans held for sale, Fair Value | 20,205 | 8,663 | ||
Loans, net, Fair Value | 2,919,573 | 1,380,437 | ||
Federal Home Loan Bank stock, at cost | 19,499 | 8,929 | ||
Bank-owned life insurance, fair value | 76,990 | 33,148 | ||
Derivative assets | 2,368 | 4,717 | ||
Purchased accounts receivable, fair value | 44,821 | 18,725 | ||
Accrued interest receivable, Fair Value | 12,071 | 5,356 | ||
Financial liabilities: | ||||
Deposits, Fair Value | 3,245,431 | 1,674,175 | ||
Short term borrowings, Fair Value | 250,500 | 126,726 | ||
Long-term debt, Fair Value | 183,326 | 72,397 | ||
Derivative liabilities | 2,497 | |||
Accrued interest payable, Fair Value | $2,688 | $1,817 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_2
EMPLOYEE AND DIRECTOR BENEFIT PLANS- Plan Details (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted/vested (in shares) | 0 |
2013 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted/vested (in shares) | 0 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_3
EMPLOYEE AND DIRECTOR BENEFIT PLANS- Summary of the Company’s Option Plans (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options acquired | 73,413 | |||
Weighted average exercise price, options acquired | $32.25 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options, Outstanding, Period Start (in shares) | 46,744 | 46,744 | ||
Granted/vested (in shares) | 0 | |||
Yadkin options assumed in Mergers (in shares) | 50,693 | |||
Exercised (in shares) | 11,353 | |||
Expired (in shares) | 3,360 | |||
Forfeited (in shares) | 4,257 | |||
Options, Outstanding, Period End (in shares) | 78,467 | 46,744 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options, Outstanding, Period Start, Weighted Average Option Price (in dollars per share) | $17.79 | $17.79 | ||
Yadkin options assumed in Mergers (in dollars per share) | $31.03 | |||
Exercised (in dollars per share) | $12.56 | |||
Expired (in dollars per share) | $15.94 | |||
Forfeited (in dollars per share) | $32.01 | |||
Options, Outstanding, Period End, Weighted Average Option Price (in dollars per share) | $31.06 | $17.79 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable [Roll Forward] | ||||
Options, Exercisable, Period Start (in shares) | 46,744 | 46,744 | ||
Yadkin options assumed in Mergers (in shares) | 50,693 | |||
Exercised (in shares) | 11,353 | |||
Expired (in shares) | 3,360 | |||
Forfeited (in shares) | 4,257 | |||
Options, Exercisable, Period End (in shares) | 78,467 | 46,744 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price [Roll Forward] | ||||
Exercisable, Weighted Average Option Price, Period Start (in dollars per share) | $17.79 | $17.79 | ||
Yadkin options assumed in Mergers (in dollars per share) | $31.03 | |||
Exercised (in dollars per share) | $12.56 | |||
Expired (in dollars per share) | $15.94 | |||
Forfeited (in dollars per share) | $32.01 | |||
Exercisable, Weighted Average Option Price, Period End (in dollars per share) | $31.06 | $17.79 | ||
Weighted average remaining life of options exercisable (in years) | 1 year 8 months 19 days | 1 year 6 months 18 days | ||
Weighted average remaining life of options outstanding (in years) | 1 year 8 months 19 days | 1 year 6 months 18 days | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price [Roll Forward] | ||||
Compensation cost charged to earnings related to stock options | $0 | $0 | $2,000 | |
Aggregate intrinsic value of total options outstanding | 125,000 | |||
Compensation not yet recognized, stock options | $0 | |||
2008 Omnibus Stock Ownership and Long Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 9,621 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Granted/vested (in shares) | 5,054 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price [Roll Forward] | ||||
Exercisable, Weighted Average Option Price, Period End (in dollars per share) | $13.77 | |||
2013 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Granted/vested (in shares) | 0 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_4
EMPLOYEE AND DIRECTOR BENEFIT PLANS- Range of Exercise Prices for Options Outstanding and Exercisable (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Outstanding (in shares) | 78,467 |
Stock Options Exercisable (in shares) | 78,467 |
$9.12 - $10.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Outstanding (in shares) | 1,722 |
Stock Options Exercisable (in shares) | 1,722 |
Range of Exercise Price, lower range limit (in dollars per share) | $10.01 |
Range of Exercise Price, upper range limit (in dollars per share) | $20 |
$10.01 - $20.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Outstanding (in shares) | 28,208 |
Stock Options Exercisable (in shares) | 28,208 |
Range of Exercise Price, lower range limit (in dollars per share) | $20.01 |
Range of Exercise Price, upper range limit (in dollars per share) | $30 |
$20.01 - $30.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Outstanding (in shares) | 4,085 |
Stock Options Exercisable (in shares) | 4,085 |
Range of Exercise Price, lower range limit (in dollars per share) | $30.01 |
Range of Exercise Price, upper range limit (in dollars per share) | $40 |
$30.01 - $40.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Outstanding (in shares) | 9,717 |
Stock Options Exercisable (in shares) | 9,717 |
Range of Exercise Price, lower range limit (in dollars per share) | $40.01 |
Range of Exercise Price, upper range limit (in dollars per share) | $50 |
$40.01 - $50.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Outstanding (in shares) | 33,902 |
Stock Options Exercisable (in shares) | 33,902 |
$50.01 - $57.21 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Outstanding (in shares) | 833 |
Stock Options Exercisable (in shares) | 833 |
Range of Exercise Price, lower range limit (in dollars per share) | $50.01 |
Range of Exercise Price, upper range limit (in dollars per share) | $57.21 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_5
EMPLOYEE AND DIRECTOR BENEFIT PLANS- Restricted Stock Award Plans (Details) (Restricted Stock, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted Stock Awards, Nonvested, Opening Balance (in shares) | 1,250 | ||
Granted (in shares) | 0 | ||
Yadkin restricted stock assumed in Mergers (in shares) | 173,266 | ||
Vested (in shares) | 172,900 | ||
Forfeited (in shares) | 680 | ||
Restricted Stock Awards, Nonvested, Closing Balance (in shares) | 936 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Restricted Stock Awards, Nonvested, Opening Balance (in dollars per share) | $12.51 | ||
Granted (in dollars per share) | $0 | ||
Yadkin restricted stock assumed in Mergers (in dollars per share) | $6.95 | ||
Vested (in dollars per share) | $6.95 | ||
Forfeited (in dollars per share) | $12.51 | ||
Restricted Stock Awards, Nonvested, Closing Balance (in dollars per share) | $10.68 | ||
Compensation cost recognized, share-based awards other than options | $336,000 | $8,000 | $29,000 |
Nonvested awards, compensation not yet recognized, share-based awards other than options | $0 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_6
EMPLOYEE AND DIRECTOR BENEFIT PLANS- Defined Contribution Plan (Details) (Pension Plan, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum annual contribution per employee, percentage | 4.00% | ||
Defined Contribution Plan, Cost Recognized | $1,252 | $1,140 | $658 |
EMPLOYEE_AND_DIRECTOR_BENEFIT_7
EMPLOYEE AND DIRECTOR BENEFIT PLANS- Piedmont Stock Warrants (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Jul. 04, 2014 | Dec. 31, 2011 | Jan. 24, 2014 | |
Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of directors warrants granted to | 2 | ||||||
Stock-based compensation | $941,000 | $1,153,000 | $2,266,000 | ||||
Yadkin Financial Corporation | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued in trust | 856,447 | ||||||
Piedmont Community Bank Holdings Inc | Yadkin Financial Corporation | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock exchange ratio | 6.28597 | ||||||
Piedmont Community Bank Holdings Inc | Common Stock Warrants | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award requisite service period (in years) | 10 years | ||||||
Vesting rate (as a percent) | 25.00% | 25.00% | 25.00% | ||||
Increase in initial exercise price (as a percent) | 8.00% | ||||||
Warrants outstanding (in shares) | 146,666 | ||||||
Stock-based compensation | 605,000 | 1,145,000 | 2,235,000 | ||||
Nonvested awards, compensation not yet recognized, share-based awards other than options | $245,000 | $850,000 |
CHANGES_IN_ACCUMULATED_OTHER_C2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of AOCI (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | ($4,173) | $1,818 | $280 |
Other comprehensive income (loss) before reclassifications | 2,005 | -5,244 | 1,538 |
Amounts reclassified for securities losses | -76 | -747 | 0 |
Net other comprehensive income (loss) during period | 1,929 | -5,991 | 1,538 |
Non-controlling interests | -1,448 | 216 | |
Ending Balance | -2,244 | -4,173 | 1,818 |
Accumulated other comprehensive loss | -2,244 | -2,725 | 1,602 |
Investment Securities Available For Sale | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | -6,554 | 2,085 | 280 |
Other comprehensive income (loss) before reclassifications | 5,445 | -7,892 | 1,805 |
Amounts reclassified for securities losses | -76 | -747 | 0 |
Net other comprehensive income (loss) during period | 5,369 | -8,639 | 1,805 |
Non-controlling interests | -2,197 | 351 | |
Ending Balance | -1,185 | -6,554 | 2,085 |
Accumulated other comprehensive loss | -4,357 | 1,734 | |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 2,381 | -267 | 0 |
Other comprehensive income (loss) before reclassifications | -3,440 | 2,648 | -267 |
Amounts reclassified for securities losses | 0 | 0 | 0 |
Net other comprehensive income (loss) during period | -3,440 | 2,648 | -267 |
Non-controlling interests | 749 | -135 | |
Ending Balance | -1,059 | 2,381 | -267 |
Accumulated other comprehensive loss | $1,632 | ($132) |
CHANGES_IN_ACCUMULATED_OTHER_C3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of AOCI (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense | $5,413 | $2,014 | ($3,216) |
Investment Securities Available For Sale | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gross reclassification | -126 | -1,215 | |
Income tax expense | 50 | 468 | |
Reclassification, net of tax | ($76) | ($747) |
PARENT_COMPANY_FINANCIAL_DATA_1
PARENT COMPANY FINANCIAL DATA Condensed Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | $65,312 | $29,081 | ||
Investment securities available for sale | 672,421 | 404,388 | ||
Deferred tax asset, net | 75,449 | 56,816 | ||
Accrued interest receivable and other assets | 81,327 | 38,118 | ||
Total assets | 4,266,309 | 2,122,713 | ||
Liabilities and Equity [Abstract] | ||||
Long-term debt | 180,164 | 72,921 | ||
Accrued interest payable and other liabilities | 30,479 | 13,002 | ||
Total liabilities | 3,708,507 | 1,884,654 | ||
Total stockholders' equity | 557,802 | 140,800 | ||
Total liabilities and shareholders' equity | 4,266,309 | 2,122,713 | ||
Parent Company | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 2,825 | 631 | 53 | 12,193 |
Investment securities available for sale | 1,069 | 0 | ||
Investment in subsidiaries | 615,570 | 140,233 | ||
Deferred tax asset, net | 650 | 0 | ||
Accrued interest receivable and other assets | 2,286 | 19 | ||
Total assets | 622,400 | 140,883 | ||
Liabilities and Equity [Abstract] | ||||
Long-term debt | 62,481 | 0 | ||
Accrued interest payable and other liabilities | 2,117 | 83 | ||
Total liabilities | 64,598 | 83 | ||
Total stockholders' equity | 557,802 | 140,800 | ||
Total liabilities and shareholders' equity | $622,400 | $140,883 |
PARENT_COMPANY_FINANCIAL_DATA_2
PARENT COMPANY FINANCIAL DATA Condensed Statements of Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income: | |||
Dividends from subsidiaries | $134,548 | $79,090 | $48,092 |
Expense: | |||
Interest expense | 13,980 | 8,653 | 6,804 |
Other expenses | 12,087 | 8,322 | 5,914 |
Income (loss) before income taxes | 27,118 | 7,887 | -2,428 |
Income tax benefit | -5,413 | -2,014 | 3,216 |
Net income | 21,705 | 5,873 | 788 |
Dividends on preferred stock | 1,269 | 0 | 0 |
Net income attributable to non-controlling interests | 2,466 | 3,601 | 1,935 |
Net income (loss) available to common shareholders | 17,970 | 2,272 | -1,147 |
Parent Company | |||
Income: | |||
Dividends from subsidiaries | 8,058 | 0 | 0 |
Other income | 54 | 0 | 0 |
Total income | 8,112 | 0 | 0 |
Expense: | |||
Interest expense | 2,331 | 0 | 0 |
Other expenses | 837 | 1,247 | 3,939 |
Total expenses | 3,168 | 1,247 | 3,939 |
Income (loss) before income taxes | 4,944 | -1,247 | -3,939 |
Income tax benefit | 5,647 | 0 | 0 |
Income (loss) before equity in undistributed earnings of subsidiaries | 10,591 | -1,247 | -3,939 |
Equity in undistributed earnings of subsidiaries | 11,114 | 7,120 | 4,727 |
Net income | 21,705 | 5,873 | 788 |
Dividends on preferred stock | 1,269 | 0 | 0 |
Net income attributable to non-controlling interests | 2,466 | 3,470 | 1,935 |
Net income (loss) available to common shareholders | $17,970 | $2,403 | ($1,147) |
PARENT_COMPANY_FINANCIAL_DATA_3
PARENT COMPANY FINANCIAL DATA Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $21,705 | $5,873 | $788 |
Deferred income taxes | 9,905 | 2,474 | -1,416 |
Net change in other assets | -7,120 | -13,870 | 3,467 |
Net change in interest payable and other liabilities | 7,709 | -1,919 | 3,215 |
Net cash provided by (used in) operating activities | 14,169 | -6,694 | -20,580 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities available for sale | 128,162 | 174,326 | 86,601 |
Purchases of cash flow hedges | -1,278 | 0 | 0 |
Disposals of premises and equipment | 3,954 | 0 | 0 |
Net cash received in business combinations | 36,116 | 24,008 | 0 |
Net cash provided by (used in) investing activities | -184,223 | -130,662 | 23,426 |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt, net | 101,308 | 36,600 | 0 |
Distribution to legacy shareholders of Piedmont Community Bank Holdings, Inc. | -9,809 | 0 | 0 |
Dividends paid on preferred stock | -1,269 | 0 | 0 |
Net cash provided by (used in) financing activities | 201,639 | 187,623 | -10,999 |
Net change in cash and cash equivalents | 31,585 | 50,267 | -8,153 |
Cash and cash equivalents, beginning balance | 29,081 | ||
Cash and cash equivalents, ending balance | 65,312 | 29,081 | |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 21,705 | 5,873 | 788 |
Deferred income taxes | -5,647 | 0 | 0 |
Equity in undistributed earnings of subsidiaries | -11,114 | -7,120 | -4,727 |
Net change in other assets | 258 | 346 | -343 |
Net change in interest payable and other liabilities | -281 | -801 | 398 |
Other, net | 419 | 280 | 1,412 |
Net cash provided by (used in) operating activities | 5,340 | -1,422 | -2,472 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities available for sale | 13 | 0 | 0 |
Purchases of cash flow hedges | -1,278 | 0 | 0 |
Investment in subsidiaries | -323 | 0 | -9,905 |
Proceeds from repayment of investment in subsidiaries | 6,014 | 2,000 | 0 |
Disposals of premises and equipment | 0 | 0 | 300 |
Net cash received in business combinations | 4,388 | 0 | 0 |
Net cash provided by (used in) investing activities | 8,814 | 2,000 | -9,605 |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt, net | 5 | 0 | 0 |
Repurchase of common stock | -886 | 0 | 0 |
Distribution to legacy shareholders of Piedmont Community Bank Holdings, Inc. | -9,810 | 0 | 0 |
Dividends paid on preferred stock | -1,269 | 0 | 0 |
Other, net | 0 | 0 | -63 |
Net cash provided by (used in) financing activities | -11,960 | 0 | -63 |
Net change in cash and cash equivalents | 2,194 | 578 | -12,140 |
Cash and cash equivalents, beginning balance | 631 | 53 | 12,193 |
Cash and cash equivalents, ending balance | $2,825 | $631 | $53 |