Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Bank of Marin Bancorp | ' |
Entity Central Index Key | '0001403475 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 5,460,411 |
CONSOLIDATED_STATEMENTS_OF_CON
CONSOLIDATED STATEMENTS OF CONDITION (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $99,358 | $28,349 |
Investment securities | ' | ' |
Held-to-maturity, at amortized cost | 130,085 | 139,452 |
Available-for-sale, at fair value (amortized cost $118,353 and $150,420 at September 30, 2013 and December 31, 2012, respectively) | 119,340 | 153,962 |
Total investment securities | 249,425 | 293,414 |
Loans, net of allowance for loan losses of $13,808 and $13,661 at September 30, 2013 and December 31, 2012, respectively | 1,079,043 | 1,060,291 |
Bank premises and equipment, net | 8,947 | 9,344 |
Interest receivable and other assets | 46,830 | 43,351 |
Total assets | 1,483,603 | 1,434,749 |
Deposits | ' | ' |
Non-interest bearing | 537,104 | 389,722 |
Interest bearing | ' | ' |
Transaction accounts | 76,221 | 169,647 |
Savings accounts | 102,898 | 93,404 |
Money market accounts | 437,247 | 443,742 |
CDARS® time accounts | 1,474 | 15,718 |
Other time accounts | 137,532 | 141,056 |
Total deposits | 1,292,476 | 1,253,289 |
Federal Home Loan Bank borrowings | 15,000 | 15,000 |
Interest payable and other liabilities | 14,416 | 14,668 |
Total liabilities | 1,321,892 | 1,282,957 |
Stockholders' Equity | ' | ' |
Preferred stock, no par value Authorized - 5,000,000 shares, none issued | 0 | 0 |
Common stock, no par value Authorized - 15,000,000 shares; Issued and outstanding - 5,462,061 and 5,389,210 at September 30, 2013 and December 31, 2012, respectively | 60,982 | 58,573 |
Retained earnings | 100,157 | 91,164 |
Accumulated other comprehensive income, net | 572 | 2,055 |
Total stockholders' equity | 161,711 | 151,792 |
Total liabilities and stockholders' equity | $1,483,603 | $1,434,749 |
CONSOLIDATED_STATEMENTS_OF_CON1
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Investment Securities | ' | ' |
Available for sale, amortized cost | $118,353 | $150,420 |
Loans, allowance for loan losses | $13,808 | $13,661 |
Stockholders' Equity | ' | ' |
Preferred stock, no par value | $0 | $0 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, no par value (in dollars per share) | $0 | $0 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 5,462,061 | 5,389,210 |
Common stock, outstanding (in shares) | 5,462,061 | 5,389,210 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income | ' | ' | ' | ' | ' |
Interest and fees on loans | $13,049 | $13,366 | $14,117 | $40,050 | $44,769 |
Interest on investment securities | ' | ' | ' | ' | ' |
Securities of U.S. government agencies | 553 | 585 | 731 | 1,763 | 2,515 |
Obligations of state and political subdivisions | 524 | 437 | 382 | 1,599 | 1,224 |
Corporate debt securities and other | 311 | 339 | 326 | 974 | 812 |
Interest due from banks and other | 34 | 3 | 42 | 45 | 148 |
Total interest income | 14,471 | 14,730 | 15,598 | 44,431 | 49,468 |
Interest expense | ' | ' | ' | ' | ' |
Interest on interest bearing transaction accounts | 12 | 12 | 48 | 35 | 137 |
Interest on savings accounts | 9 | 8 | 26 | 25 | 72 |
Interest on money market accounts | 101 | 95 | 181 | 295 | 544 |
Interest on CDARS® time accounts | 1 | 2 | 19 | 8 | 72 |
Interest on other time accounts | 226 | 224 | 254 | 682 | 827 |
Interest on borrowed funds | 80 | 84 | 153 | 243 | 417 |
Total interest expense | 429 | 425 | 681 | 1,288 | 2,069 |
Net interest income | 14,042 | 14,305 | 14,917 | 43,143 | 47,399 |
(Reversal of) provision for loan losses | -480 | 1,100 | 2,100 | 390 | 2,200 |
Net interest income after (reversal of) provision for loan losses | 14,522 | 13,205 | 12,817 | 42,753 | 45,199 |
Non-interest income | ' | ' | ' | ' | ' |
Service charges on deposit accounts | 509 | 515 | 528 | 1,545 | 1,601 |
Wealth Management and Trust Services | 532 | 539 | 507 | 1,618 | 1,451 |
Debit card interchange fees | 288 | 280 | 261 | 820 | 754 |
Merchant interchange fees | 196 | 222 | 183 | 623 | 562 |
Earnings on Bank-owned life insurance | 179 | 186 | 192 | 766 | 572 |
Loss on sale of securities | -35 | 0 | 0 | -35 | -34 |
Other income | 284 | 202 | 130 | 666 | 390 |
Total non-interest income | 1,953 | 1,944 | 1,801 | 6,003 | 5,296 |
Non-interest expense | ' | ' | ' | ' | ' |
Salaries and related benefits | 5,389 | 5,430 | 5,211 | 16,117 | 16,129 |
Occupancy and equipment | 1,040 | 1,052 | 1,089 | 3,165 | 3,132 |
Depreciation and amortization | 343 | 353 | 339 | 1,032 | 1,021 |
Federal Deposit Insurance Corporation insurance | 244 | 223 | 221 | 681 | 672 |
Data processing | 612 | 696 | 596 | 1,857 | 1,862 |
Professional services | 775 | 814 | 519 | 2,116 | 1,620 |
Other expense | 1,704 | 1,851 | 1,617 | 5,253 | 4,676 |
Total non-interest expense | 10,107 | 10,419 | 9,592 | 30,221 | 29,112 |
Income before provision for income taxes | 6,368 | 4,730 | 5,026 | 18,535 | 21,383 |
Provision for income taxes | 2,364 | 1,675 | 1,802 | 6,610 | 8,268 |
Net income | 4,004 | 3,055 | 3,224 | 11,925 | 13,115 |
Net income per common share: | ' | ' | ' | ' | ' |
Basic | $0.74 | $0.56 | $0.60 | $2.20 | $2.46 |
Diluted | $0.72 | $0.55 | $0.59 | $2.16 | $2.41 |
Weighted average shares used to compute net income per common share: | ' | ' | ' | ' | ' |
Basic | 5,433 | 5,419 | 5,344 | 5,414 | 5,335 |
Diluted | 5,538 | 5,509 | 5,455 | 5,511 | 5,433 |
Dividends declared per common share | $0.18 | $0.18 | $0.18 | $0.54 | $0.52 |
Comprehensive income: | ' | ' | ' | ' | ' |
Net income | 4,004 | 3,055 | 3,224 | 11,925 | 13,115 |
Other comprehensive (loss) income | ' | ' | ' | ' | ' |
Change in net unrealized gain on available-for-sale securities | -621 | -1,666 | 747 | -2,591 | 736 |
Reclassification adjustment for loss on sale of securities included in net income | 35 | 0 | 0 | 35 | 34 |
Net change in unrealized gain on available-for-sale securities, before tax | -586 | -1,666 | 747 | -2,556 | 770 |
Deferred tax (benefit) expense | -246 | -700 | 314 | -1,073 | 324 |
Other comprehensive (loss) income, net of tax | -340 | -966 | 433 | -1,483 | 446 |
Comprehensive income | $3,664 | $2,089 | $3,657 | $10,442 | $13,561 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income, Net of Taxes |
In Thousands, except Share data | ||||
Balance at Dec. 31, 2011 | $135,551 | $56,854 | $77,098 | $1,599 |
Balance (in shares) at Dec. 31, 2011 | ' | 5,336,927 | ' | ' |
Net income | 17,817 | 0 | 17,817 | 0 |
Other comprehensive income (loss) | 456 | 0 | 0 | 456 |
Stock options exercised (in shares) | ' | 37,563 | ' | ' |
Stock options exercised | 1,041 | 1,041 | 0 | 0 |
Excess tax benefit - stock-based compensation | 42 | 42 | 0 | 0 |
Stock issued under employee stock purchase plan (in shares) | ' | 700 | ' | ' |
Stock issued under employee stock purchase plan | 25 | 25 | 0 | 0 |
Restricted stock granted (in shares) | ' | 9,030 | ' | ' |
Restricted stock granted | 0 | 0 | 0 | 0 |
Restricted stock forfeited/cancelled (in shares) | ' | -380 | ' | ' |
Restricted stock forfeited/cancelled | 0 | 0 | 0 | 0 |
Stock-based compensation - stock options | 206 | 206 | 0 | 0 |
Stock-based compensation - restricted stock | 202 | 202 | 0 | 0 |
Cash dividends paid on common stock | -3,751 | 0 | -3,751 | 0 |
Stock purchased by directors under director stock plan (in shares) | ' | 100 | ' | ' |
Stock purchased by directors under director stock plan | 4 | 4 | 0 | 0 |
Stock issued in payment of director fees (in shares) | ' | 5,270 | ' | ' |
Stock issued in payment of director fees | 199 | 199 | 0 | 0 |
Balance at Dec. 31, 2012 | 151,792 | 58,573 | 91,164 | 2,055 |
Balance (in shares) at Dec. 31, 2012 | 5,389,210 | 5,389,210 | ' | ' |
Net income | 11,925 | 0 | 11,925 | 0 |
Other comprehensive income (loss) | -1,483 | 0 | 0 | -1,483 |
Stock options exercised (in shares) | ' | 56,850 | ' | ' |
Stock options exercised | 1,736 | 1,736 | 0 | 0 |
Excess tax benefit - stock-based compensation | 108 | 108 | 0 | 0 |
Stock issued under employee stock purchase plan (in shares) | ' | 720 | ' | ' |
Stock issued under employee stock purchase plan | 28 | 28 | 0 | 0 |
Restricted stock granted (in shares) | ' | 12,010 | ' | ' |
Restricted stock granted | 0 | 0 | 0 | 0 |
Restricted stock forfeited/cancelled (in shares) | ' | -2,508 | ' | ' |
Restricted stock forfeited/cancelled | 0 | 0 | 0 | 0 |
Stock-based compensation - stock options | 139 | 139 | 0 | 0 |
Stock-based compensation - restricted stock | 170 | 170 | 0 | 0 |
Cash dividends paid on common stock | -2,932 | 0 | -2,932 | 0 |
Stock purchased by directors under director stock plan (in shares) | ' | 160 | ' | ' |
Stock purchased by directors under director stock plan | 6 | 6 | 0 | 0 |
Stock issued in payment of director fees (in shares) | ' | 5,619 | ' | ' |
Stock issued in payment of director fees | 222 | 222 | 0 | 0 |
Balance at Sep. 30, 2013 | $161,711 | $60,982 | $100,157 | $572 |
Balance (in shares) at Sep. 30, 2013 | 5,462,061 | 5,462,061 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income | $11,925 | $13,115 | $17,817 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
(Reversal of) provision for loan losses | 390 | 2,200 | ' |
Compensation expense--common stock for director fees | 166 | 155 | ' |
Stock-based compensation expense | 309 | 307 | ' |
Excess tax benefits from exercised stock options | -86 | -40 | ' |
Amortization of investment security premiums, net of accretion of discounts | 2,401 | 1,619 | ' |
Accretion of discount on acquired loans | -1,137 | -1,965 | ' |
Decrease in deferred loan origination fees, net | -662 | -895 | ' |
Loss on sale of investment securities | 35 | 34 | ' |
Depreciation and amortization | 1,032 | 1,021 | ' |
Loss on disposal of premise and equipment | 0 | 11 | ' |
(Gain) loss on sale of repossessed assets | -43 | 14 | ' |
Earnings on bank owned life insurance policies | -766 | -572 | ' |
Net change in operating assets and liabilities: | ' | ' | ' |
Interest receivable | 408 | -267 | ' |
Interest payable | -32 | -142 | ' |
Deferred rent and other rent-related expenses | 50 | 257 | ' |
Other assets | -2,276 | 798 | ' |
Other liabilities | 2,926 | -1,623 | ' |
Total adjustments | 2,715 | 912 | ' |
Net cash provided by operating activities | 14,640 | 14,027 | ' |
Cash Flows from Investing Activities: | ' | ' | ' |
Purchase of securities held-to-maturity | 0 | -40,639 | ' |
Purchase of securities available-for-sale | 0 | -55,679 | ' |
Proceeds from sale of securities available-for-sale | 2,220 | 2,186 | 2,200 |
Proceeds from paydowns/maturity of securities held-to-maturity | 7,815 | 5,068 | ' |
Proceeds from paydowns/maturity of securities available-for-sale | 28,963 | 41,663 | ' |
Loans originated and principal collected, net | -20,375 | 17,301 | ' |
Purchase of bank owned life insurance policies | 0 | -364 | ' |
Purchase of premises and equipment | -635 | -523 | ' |
Proceeds from sale of repossessed assets | 270 | 41 | ' |
Net cash provided by (used in) investing activities | 18,258 | -30,946 | ' |
Cash Flows from Financing Activities: | ' | ' | ' |
Net increase in deposits | 39,187 | 55,901 | ' |
Proceeds from stock options exercised | 1,736 | 433 | ' |
Repayment of subordinated debenture | 0 | 5,000 | ' |
Repayment of Federal Home Loan Bank borrowings | 0 | -20,000 | ' |
Cash dividends paid on common stock | -2,932 | -2,784 | ' |
Stock issued under employee and director stock purchase plans | 34 | 24 | ' |
Excess tax benefits from exercised stock options | 86 | 40 | ' |
Net cash provided by financing activities | 38,111 | 28,614 | ' |
Net increase in cash and cash equivalents | 71,009 | 11,695 | ' |
Cash and cash equivalents at beginning of period | 28,349 | 129,743 | 129,743 |
Cash and cash equivalents at end of period | 99,358 | 141,438 | 28,349 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for interest | 1,320 | 2,212 | ' |
Cash paid for income taxes | 7,889 | 8,541 | ' |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' | ' |
Change in unrealized gain on available-for-sale securities | -2,556 | 770 | ' |
Loans transferred to repossessed assets | 0 | 65 | ' |
Stock issued in payment of director fees | $222 | $199 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The consolidated financial statements include the accounts of Bancorp and its only wholly-owned bank subsidiary, the Bank. All material intercompany transactions have been eliminated. In the opinion of Management, the unaudited interim consolidated financial statements contain all adjustments necessary to present fairly our financial position, results of operations, changes in stockholders' equity and cash flows. All adjustments are of a normal, recurring nature. Management has evaluated subsequent events through the date of filing, and has determined that there are no subsequent events that require recognition or disclosure except the pending NorCal Community Bancorp ("NorCal") acquisition as discussed in Note 3. | |||||||||||||||||
Certain information and footnote disclosures presented in the annual consolidated financial statements are not included in the interim consolidated financial statements. Accordingly, the accompanying unaudited interim consolidated financial statements should be read in conjunction with our 2012 Annual Report on Form 10-K. The results of operations for the three months and nine months ended September 30, 2013 are not necessarily indicative of the operating results for the full year. | |||||||||||||||||
The following table shows: 1) weighted average basic shares, 2) potential common shares related to stock options, unvested restricted stock and stock warrant, and 3) weighted average diluted shares. Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock. Diluted EPS are calculated using the weighted average diluted shares. The number of potential common shares included in quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potential common shares included in year-to-date diluted EPS is a year-to-date weighted average of potential common shares included in each quarterly diluted EPS computation. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
(in thousands; except per share data; unaudited) | September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Weighted average basic shares outstanding | 5,433 | 5,419 | 5,344 | 5,414 | 5,335 | ||||||||||||
Add: Potential common shares related to stock options | 46 | 39 | 55 | 43 | 48 | ||||||||||||
Potential common shares related to unvested restricted stock | 4 | 2 | 9 | 4 | 6 | ||||||||||||
Potential common shares related to the warrant | 55 | 49 | 47 | 50 | 44 | ||||||||||||
Weighted average diluted shares outstanding | 5,538 | 5,509 | 5,455 | 5,511 | 5,433 | ||||||||||||
Net income | $ | 4,004 | $ | 3,055 | $ | 3,224 | $ | 11,925 | $ | 13,115 | |||||||
Basic EPS | $ | 0.74 | $ | 0.56 | $ | 0.6 | $ | 2.2 | $ | 2.46 | |||||||
Diluted EPS | $ | 0.72 | $ | 0.55 | $ | 0.59 | $ | 2.16 | $ | 2.41 | |||||||
Weighted average anti-dilutive shares not included in the calculation of diluted EPS | 51 | 60 | 41 | 48 | 33 | ||||||||||||
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11 Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The ASU enhances disclosures in order to improve the comparability of offsetting (netting) assets and liabilities reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and International Financial Reporting Standards (“IFRS”) by requiring entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the statements of condition and instruments and transactions subject to an agreement similar to a master netting arrangement. | |
In January 2013, the FASB issued ASU No. 2013-01 Balance Sheet (Topic 210) Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2011-11. It further clarifies that the scope of ASU No. 2011-11 applies to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in FASB Accounting Standards Codification® or subject to a master netting arrangement or similar agreement. Both ASU 2011-11 and ASU 2013-01 are effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. We adopted these ASUs in the first quarter of 2013. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU requires entities to present separately by component reclassifications out of accumulated other comprehensive income. An entity is required to disclose in the notes of the financial statements or parenthetically on the face of the financial statements the effect of significant items reclassified out of accumulated other comprehensive income on the respective line items of net income, but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety. ASU 2013-02 is effective for fiscal years, and interim periods beginning on or after December 15, 2012 for public entities. We adopted this ASU in the first quarter of 2013. | |
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405) Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. The ASU requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. Entities are required to record the amount the entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors at the reporting date. Examples of obligations within the scope of this guidance include debt arrangements, other contractual obligations, settled litigation and judicial rulings. ASU 2013-04 is effective retrospectively to all periods presented for fiscal years and interim periods beginning after December 15, 2013 for public entities. We do not expect this ASU to have a significant impact on our financial condition or results of operations. | |
In July 2013, the FASB issued ASU No. 2013-10, Derivatives and Hedging (Topic 815) Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedging Accounting Purposes. | |
The ASU provides for the inclusion of the Fed Funds Effective Swap Rate or also referred to as the Overnight Index Swap Rate ("OIS") as a U.S. benchmark interest rate for hedge accounting purposes, in addition to direct Treasury obligations of the U.S. government ("UST") and London Interbank Offered Rate ("LIBOR"). The ASU is a result of the financial crisis in 2008, as the exposure to and the demand for hedging the Fund Funds rate have increased significantly. ASU 2013-10 is effective prospectively for qualifying new or re-designated hedging relationships entered into on or after July 17, 2013. We do not expect this ASU to have a significant impact on our financial condition or results of operations. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The ASU requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except as follows. To the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes, then the unrecognized tax benefit should be presented as a liability. | |
ASU 2013-11 is effective prospectively for fiscal years, and interim periods beginning after December 15, 2013 for public entities. We do not expect this ASU to have a significant impact on our financial condition or results of operations. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | ' |
Acquisition | ' |
Acquisition | |
On July 1, 2013, we entered into a definitive agreement to acquire NorCal Community Bancorp, parent company of Bank of Alameda. Bank of Alameda has four branch offices serving Alameda, Emeryville, and Oakland, and had assets of $271.5 million, total deposits of $237.2 million, and total loans of $177.3 million as of September 30, 2013. We have received all the necessary regulatory approvals. Additionally, NorCal shareholders gave their approval on October 17, 2013. The transaction is expected to close in the fourth quarter of 2013. | |
For more information concerning the transaction, please see the S-4 filed by Bancorp with the Securities and Exchange Commission ("SEC") on August 23, 2013, and the 8-K Reports filed with the SEC on July 1 and July 5, 2013. For other important factors regarding the NorCal acquisition, please see the Forward Looking Statements and Risk Factors sections of the Form 10-Q for the quarter ended June 30, 2013. |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value of Assets and Liabilities | ' | ||||||||||||||||
Fair Value of Assets and Liabilities | |||||||||||||||||
Fair Value Hierarchy and Fair Value Measurement | |||||||||||||||||
We group our assets and liabilities that are measured at fair value in three levels within the fair value hierarchy, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | |||||||||||||||||
Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not involve a significant degree of judgment. | |||||||||||||||||
Level 2: Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data. | |||||||||||||||||
Level 3: Valuations are based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Values are determined using pricing models and discounted cash flow models and include management judgment and estimation which may be significant. | |||||||||||||||||
The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis. | |||||||||||||||||
(in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Description of Financial Instruments | |||||||||||||||||
At September 30, 2013 (unaudited): | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 85,108 | $ | — | $ | 85,108 | $ | — | |||||||||
Debentures of government-sponsored agencies | $ | 18,954 | $ | — | $ | 18,954 | $ | — | |||||||||
Privately-issued collateralized mortgage obligations | $ | 15,278 | $ | — | $ | 15,278 | $ | — | |||||||||
Derivative financial assets (interest rate contracts) | $ | 646 | $ | — | $ | 646 | $ | — | |||||||||
Derivative financial liabilities (interest rate contracts) | $ | 3,085 | $ | — | $ | 3,085 | $ | — | |||||||||
At December 31, 2012: | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 111,797 | $ | — | $ | 111,797 | $ | — | |||||||||
Debentures of government-sponsored agencies | $ | 20,589 | $ | — | $ | 20,589 | $ | — | |||||||||
Privately-issued collateralized mortgage obligations | $ | 21,576 | $ | — | $ | 21,576 | $ | — | |||||||||
Derivative financial assets (interest rate contracts) | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||
Derivative financial liabilities (interest rate contracts) | $ | 5,240 | $ | — | $ | 5,240 | $ | — | |||||||||
Securities available-for-sale are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1) are used to determine the fair value of securities available-for-sale. If quoted market prices are not available, we obtain pricing information from a reputable third-party service provider, who may utilize valuation techniques that use current market-based or independently sourced parameters, such as bid/ask prices, dealer-quoted prices, interest rates, benchmark yield curves, prepayment speeds, probability of default, loss severity and credit spreads (Level 2). Level 2 securities include U.S. agencies or government sponsored agencies' debt securities, mortgage-backed securities, government agency-issued and privately-issued collateralized mortgage obligations. As of September 30, 2013 and December 31, 2012, there are no securities that are considered Level 1 or Level 3 securities. | |||||||||||||||||
On a recurring basis, derivative financial instruments are recorded at fair value, which is based on the income approach using observable Level 2 market inputs, reflecting market expectations of future interest rates as of the measurement date. Standard valuation techniques are used to calculate the present value of the future expected cash flows assuming an orderly transaction. Valuation adjustments may be made to reflect both our own credit risk and the counterparties’ credit quality in determining the fair value of the derivatives. Level 2 inputs for the valuations are limited to observable market prices for LIBOR cash rates (for the very short term), quoted prices for LIBOR futures contracts, observable market prices for LIBOR swap rates, and one-month and three-month LIBOR basis spreads at commonly quoted intervals. Mid-market pricing of the inputs is used as a practical expedient in the fair value measurements. Key inputs for interest rate valuations are used to project spot rates at resets specified by each swap, as well as to discount those future cash flows to present value at the measurement date. When the value of any collateral placed with counterparties is less than the interest rate derivative liability, the interest rate liability position is further discounted to reflect our potential credit risk to counterparties. We have used the spread between the Standard & Poors BBB rated U.S. Bank Composite rate and LIBOR with the maturity term corresponding to the duration of the swaps to calculate this credit-risk-related discount of future cash flows. | |||||||||||||||||
Certain financial assets may be measured at fair value on a non-recurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as other real estate owned. For example, when a loan is identified as impaired, it is reported at the lower of cost or fair value, measured based on the loan's observable market price (Level 1) or the current net realizable value of the underlying collateral securing the loan, if the loan is collateral dependent (Level 3). Net realizable value of the underlying collateral is the fair value of the collateral less estimated selling costs and any prior liens. Appraisals, recent comparable sales, offers and listing prices are factored in when valuing the collateral. We review and verify the qualifications and licenses of the certified general appraisers used for appraising commercial properties or certified residential appraisers for residential properties. Real estate appraisals may utilize a combination of approaches including replacement cost, sales comparison and the income approach. Comparable sales and income data are analyzed by the appraisers and adjusted to reflect differences between them and the subject property such as type, leasing status and physical condition. When the appraisals are received, Management reviews the assumptions and methodology utilized in the appraisal, as well as the overall resulting value in conjunction with independent data sources such as recent market data and industry-wide statistics. We generally use a 6% discount for selling costs which is applied to all properties, regardless of size. Appraised values may be adjusted to reflect changes in market conditions that have occurred subsequent to the appraisal date, or for revised estimates regarding the timing or cost of the property sale. These adjustments are based on qualitative judgments made by management on a case-by-case basis. There have been no significant changes in the valuation techniques during the periods ended September 30, 2013. | |||||||||||||||||
Securities held-to-maturity may be written down to fair value (determined using the same techniques discussed above for securities available-for-sale) as a result of an other-than-temporary impairment, if any. | |||||||||||||||||
The following table presents the carrying value of financial instruments that were measured at fair value on a nonrecurring basis and that were still held in the statements of condition at each respective period end, by level within the fair value hierarchy as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
(in thousands) | Carrying Value1 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Description of Financial Instruments | (Level 1) | (Level 2) | (Level 3) 1 | ||||||||||||||
At September 30, 2013 (unaudited): | |||||||||||||||||
Impaired loans carried at fair value: | |||||||||||||||||
Commercial real estate, investor | $ | 2,786 | $ | — | $ | — | $ | 2,786 | |||||||||
Construction | 3,971 | — | — | 3,971 | |||||||||||||
Home equity | 45 | — | — | 45 | |||||||||||||
Installment and other consumer | 143 | — | — | 143 | |||||||||||||
Total | $ | 6,945 | $ | — | $ | — | $ | 6,945 | |||||||||
At December 31, 2012: | |||||||||||||||||
Impaired loans carried at fair value: | |||||||||||||||||
Commercial and industrial | $ | 51 | $ | — | $ | — | $ | 51 | |||||||||
Commercial real estate, investor | 2,941 | — | — | 2,941 | |||||||||||||
Construction | 1,722 | — | — | 1,722 | |||||||||||||
Home equity | 107 | — | — | 107 | |||||||||||||
Other residential | 594 | — | — | 594 | |||||||||||||
Installment and other consumer | 159 | — | — | 159 | |||||||||||||
Total | $ | 5,574 | $ | — | $ | — | $ | 5,574 | |||||||||
1 Represents collateral-dependent loan principal balances that had been generally written down to the values of the underlying collateral, net of specific valuation allowances of $1.5 million and $729 thousand at September 30, 2013 and December 31, 2012, respectively. The carrying value of loans fully charged-off, which includes unsecured lines of credit, overdrafts and all other loans, is zero. | |||||||||||||||||
Disclosures about Fair Value of Financial Instruments | |||||||||||||||||
The table below is a summary of fair value estimates for financial instruments as of September 30, 2013 and December 31, 2012, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. We have excluded non-financial assets and non-financial liabilities defined by the Codification (ASC 820-10-15-1A), such as Bank premises and equipment, deferred taxes and other liabilities. In addition, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as Bank-owned life insurance policies. | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands; 2013 unaudited) | Carrying Amounts | Fair Value | Fair Value Hierarchy | Carrying Amounts | Fair Value | Fair Value Hierarchy | |||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 99,358 | $ | 99,358 | Level 1 | $ | 28,349 | $ | 28,349 | Level 1 | |||||||
Investment securities held-to-maturity | 130,085 | 131,567 | Level 2 | 139,452 | 142,231 | Level 2 | |||||||||||
Loans, net | 1,079,043 | 1,097,619 | Level 3 | 1,060,291 | 1,111,355 | Level 3 | |||||||||||
Interest receivable | 4,665 | 4,665 | Level 2 | 5,073 | 5,073 | Level 2 | |||||||||||
Financial liabilities | |||||||||||||||||
Deposits | 1,292,476 | 1,293,741 | Level 2 | 1,253,289 | 1,254,713 | Level 2 | |||||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,715 | Level 2 | 15,000 | 15,989 | Level 2 | |||||||||||
Interest payable | 193 | 193 | Level 2 | 225 | 225 | Level 2 | |||||||||||
Following is a description of methods and assumptions used to estimate the fair value of each class of financial instrument not recorded at fair value but required for disclosure purposes: | |||||||||||||||||
Cash and Cash Equivalents - The carrying amounts of cash and cash equivalents approximate their fair value because of the short-term nature of these instruments. | |||||||||||||||||
Held-to-maturity Securities - Held-to-maturity securities, which generally consist of obligations of state and political subdivisions and corporate bonds, are recorded at their amortized cost. Their fair value for disclosure purposes is determined using methodologies similar to those described above for available-for-sale securities using Level 2 inputs. If Level 2 inputs are not available, we may utilize pricing models that incorporate unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities (Level 3). As of September 30, 2013 and December 31, 2012, we did not hold any securities whose fair value was measured using significant unobservable inputs. | |||||||||||||||||
Loans - The fair value of loans with variable interest rates approximates their current carrying value, because their rates are regularly adjusted to current market rates. The fair value of fixed rate loans or variable loans at negotiated interest rate floors or ceilings with remaining maturities in excess of one year is estimated by discounting the future cash flows using current market rates at which similar loans would be made to borrowers with similar credit worthiness and similar remaining maturities. The allowance for loan losses (“ALLL”) is considered to be a reasonable estimate of loan discount due to credit risks. | |||||||||||||||||
Interest Receivable and Payable - The interest receivable and payable balances approximate their fair value due to the short-term nature of their settlement dates. | |||||||||||||||||
Deposits - The fair value of non-interest bearing deposits, interest bearing transaction accounts, savings accounts and money market accounts is the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting the future cash flows using current rates offered for deposits of similar remaining maturities. | |||||||||||||||||
Federal Home Loan Bank Borrowings - The fair value is estimated by discounting the future cash flows using current rates offered by the Federal Home Loan Bank of San Francisco ("FHLB") for similar credit advances corresponding to the remaining duration of our fixed-rate credit advances. | |||||||||||||||||
Commitments - Loan commitments and standby letters of credit generate ongoing fees, which are recognized over the term of the commitment period. In situations where the borrower's credit quality has declined, we record a reserve for these off-balance sheet commitments. Given the uncertainty in the likelihood and timing of a commitment being drawn upon, a reasonable estimate of the fair value of these commitments is the carrying value of the related unamortized loan fees plus the reserve, which is not material. |
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||||
Our investment securities portfolio consists of obligations of state and political subdivisions, corporate bonds, U.S. government agency securities, including mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) issued or guaranteed by Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), or Government National Mortgage Association ("GNMA"), debentures issued by government-sponsored agencies such as FNMA and FHLMC, as well as privately issued CMOs, as reflected in the table below: | ||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||
Amortized | Fair | Gross Unrealized | Amortized | Fair | Gross Unrealized | |||||||||||||||||||||
(in thousands; 2013 unaudited) | Cost | Value | Gains | (Losses) | Cost | Value | Gains | (Losses) | ||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
Obligations of state and | $ | 87,867 | $ | 89,057 | $ | 1,935 | $ | (745 | ) | $ | 96,922 | $ | 99,350 | $ | 2,855 | $ | (427 | ) | ||||||||
political subdivisions | ||||||||||||||||||||||||||
Corporate bonds | 42,218 | 42,510 | 382 | (90 | ) | 42,530 | 42,881 | 458 | (107 | ) | ||||||||||||||||
Total held-to-maturity | 130,085 | 131,567 | 2,317 | (835 | ) | 139,452 | 142,231 | 3,313 | (534 | ) | ||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
Securities of U. S. government agencies: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 46,553 | 46,763 | 725 | (515 | ) | 52,042 | 53,713 | 1,711 | (40 | ) | ||||||||||||||||
CMOs issued by FNMA | 1,342 | 1,416 | 74 | — | 4,447 | 4,550 | 105 | (2 | ) | |||||||||||||||||
CMOs issued by FHLMC | 8,940 | 9,084 | 166 | (22 | ) | 13,527 | 13,778 | 251 | — | |||||||||||||||||
CMOs issued by GNMA | 27,133 | 27,845 | 745 | (33 | ) | 38,871 | 39,756 | 886 | (1 | ) | ||||||||||||||||
Debentures of government- sponsored agencies | 19,365 | 18,954 | 130 | (541 | ) | 20,462 | 20,589 | 228 | (101 | ) | ||||||||||||||||
Privately-issued CMOs | 15,020 | 15,278 | 320 | (62 | ) | 21,071 | 21,576 | 595 | (90 | ) | ||||||||||||||||
Total available-for-sale | 118,353 | 119,340 | 2,160 | (1,173 | ) | 150,420 | 153,962 | 3,776 | (234 | ) | ||||||||||||||||
Total investment securities | $ | 248,438 | $ | 250,907 | $ | 4,477 | $ | (2,008 | ) | $ | 289,872 | $ | 296,193 | $ | 7,089 | $ | (768 | ) | ||||||||
The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2013 are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | |||||||||||||||||||||||||
(in thousands; unaudited) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Within one year | $ | 8,331 | $ | 8,340 | $ | — | $ | — | ||||||||||||||||||
After one year but within five years | 92,671 | 93,521 | 27,536 | 27,791 | ||||||||||||||||||||||
After five years through ten years | 26,094 | 26,779 | 18,132 | 17,528 | ||||||||||||||||||||||
After ten years | 2,989 | 2,927 | 72,685 | 74,021 | ||||||||||||||||||||||
Total | $ | 130,085 | $ | 131,567 | $ | 118,353 | $ | 119,340 | ||||||||||||||||||
We sold four available-for-sale securities in the first nine months of 2013 with proceeds of $2.2 million and a loss of $35 thousand. One available-for-sale security was sold in 2012 with proceeds of $2.2 million and a loss of $34 thousand. | ||||||||||||||||||||||||||
Investment securities carried at $42.2 million and $47.7 million at September 30, 2013 and December 31, 2012, respectively, were pledged with the State of California: $41.5 million and $47.0 million to secure public deposits in compliance with the Local Agency Security Program at September 30, 2013 and December 31, 2012, respectively, and $729 thousand and $719 thousand to provide collateral for trust deposits at September 30, 2013 and December 31, 2012, respectively. In addition, investment securities carried at $1.1 million were pledged to collateralize an internal Wealth Management and Trust Services (“WMTS”) checking account at both September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||
Other-Than-Temporarily Impaired Debt Securities | ||||||||||||||||||||||||||
We have evaluated the credit ratings of our investment securities and their issuer and/or insurers. Based on our evaluation, Management has determined that no investment security in our investment portfolio is other-than-temporarily impaired. In October 2013, we sold five securities amounting to $5.2 million in amortized cost as part of a portfolio review. Some of the positions were temporarily impaired and others were not, and the sales resulted in a net gain of approximately $8 thousand. We do not have the intent, and it is more likely than not that we will not have to sell the remaining securities temporarily impaired at September 30, 2013 before recovery of the cost basis. | ||||||||||||||||||||||||||
Fifty-two and fifty-five investment securities were in unrealized loss positions at September 30, 2013 and December 31, 2012, respectively. They are summarized and classified according to the duration of the loss period as follows: | ||||||||||||||||||||||||||
September 30, 2013 | < 12 continuous months | > 12 continuous months | Total Securities | |||||||||||||||||||||||
in a loss position | ||||||||||||||||||||||||||
(In thousands; unaudited) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
Obligations of state & political subdivisions | $ | 24,675 | $ | (711 | ) | 2,551 | (34 | ) | $ | 27,226 | $ | (745 | ) | |||||||||||||
Corporate bonds | 10,002 | (89 | ) | 1,434 | (1 | ) | 11,436 | (90 | ) | |||||||||||||||||
Total held-to-maturity | 34,677 | (800 | ) | 3,985 | (35 | ) | 38,662 | (835 | ) | |||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 16,612 | (515 | ) | — | — | 16,612 | (515 | ) | ||||||||||||||||||
CMOs issued by FHLMC | 2,716 | (22 | ) | — | — | 2,716 | (22 | ) | ||||||||||||||||||
CMOs issued by GNMA | 4,190 | (33 | ) | — | — | 4,190 | (33 | ) | ||||||||||||||||||
Debentures of government- sponsored agencies | 14,459 | (541 | ) | — | — | 14,459 | (541 | ) | ||||||||||||||||||
Privately issued CMOs | 5,615 | (61 | ) | 167 | (1 | ) | 5,782 | (62 | ) | |||||||||||||||||
Total available-for-sale | 43,592 | (1,172 | ) | 167 | (1 | ) | 43,759 | (1,173 | ) | |||||||||||||||||
Total temporarily impaired securities | $ | 78,269 | $ | (1,972 | ) | $ | 4,152 | $ | (36 | ) | $ | 82,421 | $ | (2,008 | ) | |||||||||||
December 31, 2012 | < 12 continuous months | > 12 continuous months | Total Securities | |||||||||||||||||||||||
in a loss position | ||||||||||||||||||||||||||
(In thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
Obligations of state & political subdivisions | $ | 33,196 | $ | (427 | ) | $ | — | $ | — | $ | 33,196 | $ | (427 | ) | ||||||||||||
Corporate bonds | 15,649 | (107 | ) | — | — | 15,649 | (107 | ) | ||||||||||||||||||
Total held-to-maturity | 48,845 | (534 | ) | — | — | 48,845 | (534 | ) | ||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 3,569 | -40 | — | — | 3,569 | -40 | ||||||||||||||||||||
CMOs issued by FNMA | 3,185 | -2 | — | — | 3,185 | -2 | ||||||||||||||||||||
CMOs issued by GNMA | 1,550 | -1 | — | — | 1,550 | -1 | ||||||||||||||||||||
Debentures of government- sponsored agencies | 9,899 | -101 | — | — | 9,899 | -101 | ||||||||||||||||||||
Privately issued CMOs | 4,214 | -89 | 203 | -1 | 4,417 | -90 | ||||||||||||||||||||
Total available-for-sale | 22,417 | -233 | 203 | -1 | 22,620 | -234 | ||||||||||||||||||||
Total temporarily impaired securities | $ | 71,262 | $ | (767 | ) | $ | 203 | $ | (1 | ) | $ | 71,465 | $ | (768 | ) | |||||||||||
Forty-eight securities in our portfolio were in a temporary loss position for less than twelve months as of September 30, 2013. We determine that the strengths of GNMA and FNMA through guarantee or support from the U.S. Federal Government are sufficient to protect us from credit losses. The other temporarily impaired securities are deemed credit worthy after our periodic impairment analysis and are all rated as investment grade by at least one major rating agency. We also monitor the financial information of the issuers of obligations of U.S. states and political subdivisions. As a result of this impairment analysis, we concluded that these securities were not other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||||||||||||
As of September 30, 2013, there were two obligations of state and political subdivisions bonds, one corporate bond and one CMO privately issued by a financial institution (with no guarantee from government sponsored agencies) in a continuous loss position for more than twelve months. We believe the decline in fair value is primarily driven by factors other than credit from our review of the issuer's financial information and it is probable that we will be able to collect all amounts due according to the contractual terms and that no other-than-temporary impairment exists. The two obligations of state and political subdivisions bonds and the corporate bond were rated as investment grade by at least one of the rating agencies. The CMO issued by a financial institution is collateralized by residential mortgages with low loan-to-value ratios and delinquency ratios and may be prepaid at par prior to maturity. We reviewed the loans collateralizing the security, credit scores of the borrowers, historical default rates and loss severities. Based upon our assessment of expected credit losses of the security given the performance of the underlying collateral and the credit enhancements, we concluded that the security was not other-than-temporarily impaired at September 30, 2013. In addition, the security was rated as investment grade by both Moody's and S&P. | ||||||||||||||||||||||||||
Securities Carried at Cost | ||||||||||||||||||||||||||
As a member of the FHLB, we are required to maintain a minimum investment in the FHLB capital stock determined by the Board of Directors of the FHLB. The minimum investment requirements can also increase in the event we need to increase our borrowing capacity with the FHLB. Shares cannot be purchased or sold except between the FHLB and its members at its $100 per share par value. We held $6.5 million and $6.0 million of FHLB stock recorded at cost in other assets on the consolidated statements of condition at September 30, 2013, and December 31, 2012, respectively. On October 29, 2013, the FHLB declared a cash dividend for the third quarter of 2013 at an annualized dividend rate of 5.65%. Management does not believe that the FHLB stock is other-than-temporarily-impaired, as we expect to be able to redeem this stock at cost. | ||||||||||||||||||||||||||
As a member bank of Visa U.S.A., we hold 16,939 shares of Visa Inc. Class B common stock with a carrying value of zero, which is equal to our cost basis. These shares are restricted from resale until their conversion into Class A (voting) shares upon the termination of Visa Inc.'s covered litigation escrow account. As a result of the restriction, these shares are not considered available-for-sale and are not carried at fair value. Upon conversion of this Class B common stock at a conversion rate of 0.4206 to Class A common stock, the value would be $1.4 million and $1.1 million at September 30, 2013 and December 31, 2012, respectively. The conversion rate is subject to further reduction upon the final settlement of the covered litigation against Visa Inc. and its member banks. See Note 9 herein. |
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||||
Credit Quality of Loans | |||||||||||||||||||||||||||||||||||||
Outstanding loans by class and payment aging as of September 30, 2013 and December 31, 2012 are as follows: | |||||||||||||||||||||||||||||||||||||
Loan Aging Analysis by Class as of September 30, 2013 and December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2013 unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential 1 | Installment and other consumer | Total | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||
30-59 days past due | $ | 5 | $ | — | $ | — | $ | 1,720 | $ | — | $ | — | $ | 246 | $ | 1,971 | |||||||||||||||||||||
60-89 days past due | — | — | — | — | 240 | — | 2 | 242 | |||||||||||||||||||||||||||||
Greater than 90 days past due (non-accrual) 2 | 1,229 | 1,403 | 5,832 | 7,045 | 359 | 1,117 | 311 | 17,296 | |||||||||||||||||||||||||||||
Total past due | 1,234 | 1,403 | 5,832 | 8,765 | 599 | 1,117 | 559 | 19,509 | |||||||||||||||||||||||||||||
Current | 167,606 | 204,770 | 541,505 | 16,228 | 85,605 | 42,455 | 15,173 | 1,073,342 | |||||||||||||||||||||||||||||
Total loans 3 | $ | 168,840 | $ | 206,173 | $ | 547,337 | $ | 24,993 | $ | 86,204 | $ | 43,572 | $ | 15,732 | $ | 1,092,851 | |||||||||||||||||||||
Non-accrual loans to total loans | 0.7 | % | 0.7 | % | 1.1 | % | 28.2 | % | 0.4 | % | 2.6 | % | 2 | % | 1.6 | % | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
30-59 days past due | $ | 29 | $ | — | $ | — | $ | — | $ | 294 | $ | 167 | $ | 98 | $ | 588 | |||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Greater than 90 days past due (non-accrual) 2 | 4,893 | 1,403 | 6,843 | 2,239 | 545 | 1,196 | 533 | 17,652 | |||||||||||||||||||||||||||||
Total past due | 4,922 | 1,403 | 6,843 | 2,239 | 839 | 1,363 | 631 | 18,240 | |||||||||||||||||||||||||||||
Current | 171,509 | 195,003 | 502,163 | 28,426 | 92,398 | 48,069 | 18,144 | 1,055,712 | |||||||||||||||||||||||||||||
Total loans 3 | $ | 176,431 | $ | 196,406 | $ | 509,006 | $ | 30,665 | $ | 93,237 | $ | 49,432 | $ | 18,775 | $ | 1,073,952 | |||||||||||||||||||||
Non-accrual loans to total loans | 2.8 | % | 0.7 | % | 1.3 | % | 7.3 | % | 0.6 | % | 2.4 | % | 2.8 | % | 1.6 | % | |||||||||||||||||||||
1 Our residential loan portfolio includes no sub-prime loans, nor is it our normal practice to underwrite loans commonly referred to as "Alt-A mortgages", the characteristics of which are loans lacking full documentation, borrowers having low FICO scores or higher loan-to-value ratios. | |||||||||||||||||||||||||||||||||||||
2 Amounts include $1.4 million and $1.6 million of Purchased Credit Impaired ("PCI") loans that have stopped accreting interest at September 30, 2013 and December 31, 2012, respectively, and exclude accreting PCI loans of $2.2 million and $3.0 million at September 30, 2013 and December 31, 2012, respectively, as their accretable yield interest recognition is independent from the underlying contractual loan delinquency status. There were no accruing loans past due more than ninety days at September 30, 2013 or December 31, 2012. | |||||||||||||||||||||||||||||||||||||
3 Amounts were net of deferred loan fees of $107 thousand and $769 thousand at September 30, 2013 and December 31, 2012, respectively. Amounts were also net of unaccreted purchase discounts on non-PCI loans of $1.5 million and $2.1 million at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||||||||||
Our commercial loans are generally made to established small to mid-sized businesses to provide financing for their working capital needs or acquisition of fixed assets. Management examines historical, current, and projected cash flows to determine the ability of the borrower to repay obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral. The cash flows of borrowers, however, may not occur as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed, such as accounts receivable or inventory, and include a personal guarantee. Some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. We target stable local businesses with strong guarantors that have proven to be more resilient in periods of economic stress. Typically, the strong guarantors provide an additional source of repayment for most of our credit extensions. | |||||||||||||||||||||||||||||||||||||
Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans discussed above. We underwrite these loans to be repaid from cash flow and to be supported by real property collateral. Repayment of commercial real estate loans is largely dependent on the successful operation of the property securing the loan, or of the business conducted on the property securing the loan. Underwriting standards for commercial real estate loans include, but are not limited to, conservative debt coverage and loan-to-value ratios. Furthermore, substantially all of our loans are guaranteed by the owners of the properties. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. In the event of a vacancy, strong guarantors have historically carried the loans until a replacement tenant can be found. The owner's substantial equity investment provides a strong economic incentive to continue to support the commercial real estate projects. As such, we have generally experienced a relatively low level of loss and delinquencies in this portfolio. | |||||||||||||||||||||||||||||||||||||
Construction loans are generally made to developers and builders to finance land acquisition as well as the subsequent construction. These loans are underwritten after evaluation of the borrower's financial strength, reputation, prior track record, and after obtaining independent appraisals. The construction industry can be impacted by major factors, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, ability to obtain construction permits, labor or material shortages, and price hikes. Estimates of construction costs and value associated with the complete project may be inaccurate. Repayment of construction loans is largely dependent on the ultimate success of the project. | |||||||||||||||||||||||||||||||||||||
Consumer loans primarily consist of home equity lines of credit, other residential (tenancy-in-common, or “TIC”) loans, and other personal loans. We originate consumer loans utilizing credit score information, debt-to-income ratio and loan-to-value ratio analysis. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, mitigates risk. Additionally, trend reports are reviewed by Management on a regular basis. Underwriting standards for home equity lines of credit include, but are not limited to, a conservative loan-to-value ratio, the number of such loans a borrower can have at one time, and documentation requirements. Our underwriting of the other residential loans, mostly secured by TIC units in San Francisco, is cautious compared to traditional residential mortgages due to the unique ownership structure. However, these borrowers tend to have more equity in their properties, which mitigates risk. Personal loans are nearly evenly split between mobile home loans and floating home loans along with a small number of installment loans. | |||||||||||||||||||||||||||||||||||||
We use a risk rating system to evaluate asset quality, and to identify and monitor credit risk in individual loans, and ultimately in the portfolio. Definitions of loans that are risk graded “Special Mention” or worse are consistent with those used by the Federal Deposit Insurance Corporation ("FDIC"). Our internally assigned grades are as follows: | |||||||||||||||||||||||||||||||||||||
Pass – Loans to borrowers of acceptable or better credit quality. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Bank’s policy regarding debt service coverage ratios. These borrowers are capable of sustaining normal economic, market or operational setbacks without significant financial impacts. Financial ratios and trends are acceptable. Negative external industry factors are generally not present. The loan may be secured, unsecured or supported by non-real estate collateral for which the value is more difficult to determine and/or marketability is more uncertain. This category also includes “Watch” loans, where the primary source of repayment has been delayed. “Watch” is intended to be a transitional grade, with either an upgrade or downgrade within a reasonable period. | |||||||||||||||||||||||||||||||||||||
Special Mention - Potential weaknesses that deserve close attention. If left uncorrected, those potential weaknesses may result in deterioration of the payment prospects for the asset. Special Mention assets do not present sufficient risk to warrant adverse classification. | |||||||||||||||||||||||||||||||||||||
Substandard - Inadequately protected by either the current sound worth and paying capacity of the obligor or the collateral pledged, if any. A Substandard asset has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if such weaknesses or deficiencies are not corrected. Loss potential, while inherent in the aggregate substandard amount, does not necessarily exist in the individual assets classified Substandard. Well-defined weaknesses include adverse trends or developments of the borrower’s financial condition, managerial weaknesses and/or significant collateral deficiencies. | |||||||||||||||||||||||||||||||||||||
Doubtful - Critical weaknesses that make collection or liquidation in full improbable. There may be specific pending events that work to strengthen the asset, however, the amount or timing of the loss may not be determinable. Pending events generally occur within one year of the asset being classified as Doubtful. Examples include: merger, acquisition, or liquidation; capital injection; guarantee; perfecting liens on additional collateral; and refinancing. Such loans are placed on non-accrual status and usually are collateral-dependent. | |||||||||||||||||||||||||||||||||||||
We regularly review our credits for accuracy of risk grades whenever new information is received. Borrowers are required to submit financial information at regular intervals: | |||||||||||||||||||||||||||||||||||||
• | Generally, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk and complexity. | ||||||||||||||||||||||||||||||||||||
• | Investor commercial real estate borrowers with loans greater than $750 thousand are required to submit rent rolls or property income statements at least annually. | ||||||||||||||||||||||||||||||||||||
• | Construction loans are monitored monthly, and assessed on an ongoing basis. | ||||||||||||||||||||||||||||||||||||
• | Home equity and other consumer loans are assessed based on delinquency. | ||||||||||||||||||||||||||||||||||||
• | Loans graded “Watch” or more severe, regardless of loan type, are assessed no less than quarterly. | ||||||||||||||||||||||||||||||||||||
The following table represents our analysis of loans by internally assigned grades, including the PCI loans, at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||
(in thousands; 2013 unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Purchased credit-impaired | Total | ||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade: | |||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||
Pass | $ | 148,974 | $ | 183,754 | $ | 529,573 | $ | 16,669 | $ | 81,629 | $ | 40,082 | $ | 14,965 | $ | 1,328 | $ | 1,016,974 | |||||||||||||||||||
Special Mention | 14,613 | 16,626 | 8,575 | 1,278 | 2,082 | 1,052 | — | 737 | 44,963 | ||||||||||||||||||||||||||||
Substandard | 4,970 | 3,246 | 8,452 | 7,046 | 2,493 | 2,438 | 767 | 1,502 | 30,914 | ||||||||||||||||||||||||||||
Total loans | $ | 168,557 | $ | 203,626 | $ | 546,600 | $ | 24,993 | $ | 86,204 | $ | 43,572 | $ | 15,732 | $ | 3,567 | $ | 1,092,851 | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Pass | $ | 148,771 | $ | 170,553 | $ | 489,978 | $ | 26,287 | $ | 86,957 | $ | 45,634 | $ | 17,809 | $ | 1,862 | $ | 987,851 | |||||||||||||||||||
Special Mention | 13,267 | 20,346 | 8,671 | 1,970 | 2,931 | 1,067 | — | 933 | 49,185 | ||||||||||||||||||||||||||||
Substandard | 13,753 | 2,992 | 8,963 | 2,408 | 3,349 | 2,731 | 966 | 1,754 | 36,916 | ||||||||||||||||||||||||||||
Total loans | $ | 175,791 | $ | 193,891 | $ | 507,612 | $ | 30,665 | $ | 93,237 | $ | 49,432 | $ | 18,775 | $ | 4,549 | $ | 1,073,952 | |||||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||||||||||
Our loan portfolio includes certain loans that have been modified in a Troubled Debt Restructuring (“TDR”), where economic concessions have been granted to borrowers experiencing financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. TDRs on non-accrual status at the time of restructure may be returned to accruing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months, and it is determined that there is reasonable assurance of repayment and of performance. | |||||||||||||||||||||||||||||||||||||
When a loan is modified, Management evaluates any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole remaining source of repayment for the loan is the operation or liquidation of the collateral. In these cases Management uses the current fair value of the collateral, less selling costs, instead of discounted cash flows. If Management determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs and unamortized premium or discount), impairment is recognized through a specific allowance or a charge-off of the loan. | |||||||||||||||||||||||||||||||||||||
The table below summarizes outstanding TDR loans by loan class as of September 30, 2013 and December 31, 2012. The summary includes those TDRs that are on non-accrual status and those that continue to accrue interest. | |||||||||||||||||||||||||||||||||||||
(in thousands; 2013 unaudited) | As of | ||||||||||||||||||||||||||||||||||||
Recorded investment in Troubled Debt Restructurings 1 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 6,139 | $ | 9,470 | |||||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 4,354 | 1,403 | |||||||||||||||||||||||||||||||||||
Commercial real estate, investor | 536 | — | |||||||||||||||||||||||||||||||||||
Construction | 5,798 | 1,929 | |||||||||||||||||||||||||||||||||||
Home equity | 513 | 908 | |||||||||||||||||||||||||||||||||||
Other residential | 2,085 | 2,831 | |||||||||||||||||||||||||||||||||||
Installment and other consumer | 1,708 | 1,743 | |||||||||||||||||||||||||||||||||||
Total | $ | 21,133 | $ | 18,284 | |||||||||||||||||||||||||||||||||
1 Includes $12.6 million and $10.8 million of TDR loans that were accruing interest as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||||||||||
The tables below present the following information for TDRs modified during the periods presented: number of contracts modified, the recorded investment in the loans prior to modification, and the recorded investment in the loans after the loans were restructured. The tables below exclude fully paid-off or fully charged-off TDR loans. | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Number of Contracts Modified | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment at period end | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the three months ended September 30, 2013: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 3 | $ | 587 | $ | 560 | $ | 558 | ||||||||||||||||||||||||||||||
Commercial real estate, owner occupied | 1 | 2,961 | 2,956 | 2,951 | |||||||||||||||||||||||||||||||||
Commercial real estate, investor | 1 | 539 | 538 | 536 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 2 | 11 | 9 | 9 | |||||||||||||||||||||||||||||||||
Total | 7 | $ | 4,098 | $ | 4,063 | $ | 4,054 | ||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the three months ended June 30, 2013: | |||||||||||||||||||||||||||||||||||||
Construction | 1 | $ | 4,745 | $ | 4,766 | $ | 4,806 | ||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the three months ended September 30, 2012: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | $ | 135 | $ | 134 | $ | 133 | ||||||||||||||||||||||||||||||
Other residential | 1 | 682 | 682 | 680 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 1 | 26 | 26 | 26 | |||||||||||||||||||||||||||||||||
Total | 3 | $ | 843 | $ | 842 | $ | 839 | ||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Number of Contracts Modified | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment at period end | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the nine months ended September 30, 2013: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial 1 | 5 | $ | 1,086 | 1,057 | $ | 991 | |||||||||||||||||||||||||||||||
Commercial real estate, owner occupied | 1 | 2,961 | 2,956 | 2,951 | |||||||||||||||||||||||||||||||||
Commercial real estate, investor | 1 | 539 | 538 | 536 | |||||||||||||||||||||||||||||||||
Construction | 1 | 4,745 | 4,766 | 4,806 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 2 | 11 | 9 | 9 | |||||||||||||||||||||||||||||||||
Total | 10 | $ | 9,342 | 9,326 | $ | 9,293 | |||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the nine months ended September 30, 2012: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 10 | $ | 9,456 | $ | 9,375 | $ | 6,766 | ||||||||||||||||||||||||||||||
Construction | 6 | 11,324 | 11,324 | 6,564 | |||||||||||||||||||||||||||||||||
Home Equity | 2 | 472 | 474 | 471 | |||||||||||||||||||||||||||||||||
Other residential | 1 | 682 | 682 | 680 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 1 | 26 | 26 | 26 | |||||||||||||||||||||||||||||||||
Total | 20 | $ | 21,960 | $ | 21,881 | $ | 14,507 | ||||||||||||||||||||||||||||||
1 Excludes two contracts modified during the three months ended March 31, 2013, which were subsequently paid off during the three months ended June 30, 2013. The pre-modification and post-modification outstanding recorded investment balances were both $218 thousand. | |||||||||||||||||||||||||||||||||||||
Modifications during the nine months ended September 30, 2013 primarily involved maturity or payment extensions and interest rate concessions, while modifications in the nine months ended September 30, 2012 primarily involved payment extensions and forbearances. There was one construction loan modified as troubled debt restructuring with a recorded investment of $4.8 million that subsequently defaulted during the first nine months of 2013, where the default occurred within the first twelve months after modification into a TDR. There were three commercial loans, two commercial real estate loans, and one construction loan modified as troubled debt restructurings within the previous twelve months with recorded investments of $833 thousand that subsequently defaulted and were charged-off in the nine months ended September 30, 2012. We are reporting these defaulted TDRs based on a payment default definition of more than ninety days past due. | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses is based upon estimates of loan losses and is maintained at a level considered adequate to provide for probable losses inherent in the loan portfolio. The allowance is increased by provisions for loan losses charged against earnings and reduced by charge-offs, net of recoveries. | |||||||||||||||||||||||||||||||||||||
In periodic evaluations of the adequacy of the allowance balance, Management considers current economic conditions, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay, the estimated value of any underlying collateral, our past loan loss experience and other factors. The ALLL is based on estimates and ultimate losses may vary from current estimates. Our Asset/Liability Management Committee (“ALCO”) reviews the adequacy of the ALLL at least quarterly, to include consideration of the relative risks in the portfolio and current economic conditions. The allowance is adjusted based on that review if, in the judgment of the ALCO and Management, changes are warranted. | |||||||||||||||||||||||||||||||||||||
The overall allowance consists of 1) specific allowances for individually identified impaired loans ("ASC 310-10") and 2) general allowances for pools of loans ("ASC 450-20"), which incorporate changing qualitative and environmental factors (e.g., portfolio growth and trends, credit concentrations, economic and regulatory factors, etc.). | |||||||||||||||||||||||||||||||||||||
The first component, specific allowances, result from the analyses of identified problem credits and the evaluation of sources of repayment including collateral, as applicable. Through Management's ongoing loan grading and credit monitoring process, individual loans are identified that have conditions that indicate the borrower may be unable to pay all amounts due in accordance with the contractual terms. These loans are evaluated for impairment individually by Management. Management considers an originated loan to be impaired when it is probable we will be unable to collect all amounts due according to the contractual terms of the loan agreement. For allowance established on acquired loans, refer to our Critical Accounting Policies section in this Form 10-Q. When the fair value of the impaired loan is less than the recorded investment in the loan, the difference is recorded as the impairment through the establishment of the specific allowance. For loans determined to be impaired, the extent of the impairment is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate at origination (for originated loans), based on the loan's observable market price, or based on the fair value of the collateral, if the loan is collateral dependent or if foreclosure is imminent. Generally with problem credits that are collateral-dependent, we obtain appraisals of the collateral at least annually. We may obtain appraisals more frequently if we believe the collateral value is subject to market volatility, if a specific event has occurred to the collateral, or if we believe foreclosure is imminent. | |||||||||||||||||||||||||||||||||||||
The second component is an estimate of the probable inherent losses in each loan pool with similar characteristics. Beginning with the quarter-ended September 30, 2013, Management refined the methodology for estimating general allowances in order to provide a more comprehensive evaluation of the potential risk of loss in our loan portfolio. This analysis encompasses our entire loan portfolio and excludes acquired loans where the discount has not been fully accreted. For allowance established on acquired loans, refer to our Critical Accounting Policies section in this Form 10-Q. See below for how loans were pooled under the prior model. For additional information on our prior allowance for loan losses model, refer to Note 1: Summary of Significant Accounting Policies in our 2012 Annual Report on Form 10-K. | |||||||||||||||||||||||||||||||||||||
• | Commercial real estate loans, owner occupied | ||||||||||||||||||||||||||||||||||||
• | Commercial real estate loans, investor | ||||||||||||||||||||||||||||||||||||
• | Construction loans | ||||||||||||||||||||||||||||||||||||
- Land loans | |||||||||||||||||||||||||||||||||||||
• | Residential real estate loans | ||||||||||||||||||||||||||||||||||||
- Residential loans, fractional tenants-in-common | |||||||||||||||||||||||||||||||||||||
• | Commercial loans | ||||||||||||||||||||||||||||||||||||
- Commercial asset-based lines | |||||||||||||||||||||||||||||||||||||
- Commercial quick qualifier loans | |||||||||||||||||||||||||||||||||||||
• | Personal loans | ||||||||||||||||||||||||||||||||||||
- Personal floating home loans | |||||||||||||||||||||||||||||||||||||
- Personal mobile home loans | |||||||||||||||||||||||||||||||||||||
• | Home equity loans | ||||||||||||||||||||||||||||||||||||
• | Other loans | ||||||||||||||||||||||||||||||||||||
Under the new methodology, the loans are evaluated on a pool basis by loan segment which is further delineated by Federal regulatory reporting codes ("call codes"). Each segment is assigned an expected loss factor which is primarily based on a twelve quarter look-back at our historical losses for that particular segment, as well as a number of other factors. We believe this change in methodology will provide a more comprehensive evaluation of the potential risk in our portfolio because the additional delineation by call code establishes a stronger focus on areas of weakness and strength within the portfolio. Loans are pooled into the following segments under the new methodology: | |||||||||||||||||||||||||||||||||||||
• | Loans secured by real estate: | ||||||||||||||||||||||||||||||||||||
- 1-4 family residential construction loans | |||||||||||||||||||||||||||||||||||||
- Other construction loans and all land development and other land loans | |||||||||||||||||||||||||||||||||||||
- Secured by farmland (including farm residential and other improvements) | |||||||||||||||||||||||||||||||||||||
- Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit | |||||||||||||||||||||||||||||||||||||
- Closed-end loans secured by 1-4 family residential properties, secured by first liens | |||||||||||||||||||||||||||||||||||||
- Closed-end loans secured by 1-4 family residential properties, secured by junior liens | |||||||||||||||||||||||||||||||||||||
- Secured by multifamily (5 or more) residential properties | |||||||||||||||||||||||||||||||||||||
- Loans secured by owner-occupied non-farm nonresidential properties | |||||||||||||||||||||||||||||||||||||
- Loans secured by other non-farm nonresidential properties | |||||||||||||||||||||||||||||||||||||
• | Loans to finance agricultural production and other loans to farmers | ||||||||||||||||||||||||||||||||||||
• | Commercial and industrial loans | ||||||||||||||||||||||||||||||||||||
• | Loans to individuals for household, family and other personal expenditures (i.e., consumer loans) | ||||||||||||||||||||||||||||||||||||
• | Other loans | ||||||||||||||||||||||||||||||||||||
Management determines loan loss multipliers based on objective and subjective factors. Objective factors include a rolling historical loss rate using a twelve quarter look-back, changes in the volume and nature of the loan portfolio, changes in credit quality metrics (past due loans, non-accrual loans, net charge-offs), and the existence of credit concentrations. Subjective factors include changes in the overall economic environment, legal and regulatory conditions, lending management and other relevant staff, as well as the quality of our loan review system. The total amount allocated is determined by applying loss multipliers to outstanding loans by call code. | |||||||||||||||||||||||||||||||||||||
The following tables represent the effect on the current period provision of the change in methodology by loan class from that used in prior periods: | |||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||
(in thousands; 2013 unaudited) | Calculated Provision Based on New Methodology | Calculated Provision Based on Prior Methodology | Difference In ALLL | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | (965 | ) | $ | (46 | ) | $ | (919 | ) | ||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 427 | 57 | 370 | ||||||||||||||||||||||||||||||||||
Commercial real estate, investor | 1,338 | 73 | 1,265 | ||||||||||||||||||||||||||||||||||
Construction | (210 | ) | (128 | ) | (82 | ) | |||||||||||||||||||||||||||||||
Home equity | (173 | ) | (29 | ) | (144 | ) | |||||||||||||||||||||||||||||||
Other residential | (124 | ) | 2 | (126 | ) | ||||||||||||||||||||||||||||||||
Installment and other consumer | (669 | ) | (450 | ) | (219 | ) | |||||||||||||||||||||||||||||||
Unallocated | (104 | ) | 41 | (145 | ) | ||||||||||||||||||||||||||||||||
Total reversal of provision for loan losses | $ | (480 | ) | $ | (480 | ) | $ | — | |||||||||||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||
(in thousands; 2013 unaudited) | Calculated Provision Based on New Methodology | Calculated Provision Based on Prior Methodology | Difference in ALLL | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | (1,204 | ) | $ | (285 | ) | $ | (919 | ) | ||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 436 | 66 | 370 | ||||||||||||||||||||||||||||||||||
Commercial real estate, investor | 1,308 | 43 | 1,265 | ||||||||||||||||||||||||||||||||||
Construction | 916 | 998 | (82 | ) | |||||||||||||||||||||||||||||||||
Home equity | (159 | ) | (15 | ) | (144 | ) | |||||||||||||||||||||||||||||||
Other residential | (274 | ) | (148 | ) | (126 | ) | |||||||||||||||||||||||||||||||
Installment and other consumer | (506 | ) | (287 | ) | (219 | ) | |||||||||||||||||||||||||||||||
Unallocated | (127 | ) | 18 | (145 | ) | ||||||||||||||||||||||||||||||||
Total provision for loan losses | $ | 390 | $ | 390 | $ | — | |||||||||||||||||||||||||||||||
Impaired Loan Balances and Their Related Allowance by Major Classes of Loans | |||||||||||||||||||||||||||||||||||||
The tables below summarize information on impaired loans and their related allowance. Total impaired loans include non-accrual loans, accruing TDR loans and accreting PCI loans that have experienced post-acquisition declines in cash flows expected to be collected. | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2013 unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Total | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||
Recorded investment in impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 1,839 | $ | 1,403 | $ | 3,457 | $ | 2,239 | $ | 356 | $ | 2,303 | $ | 117 | $ | 11,714 | |||||||||||||||||||||
With a specific allowance recorded | 4,300 | 4,094 | 2,911 | 5,798 | 276 | 226 | 1,708 | 19,313 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 6,139 | $ | 5,497 | $ | 6,368 | $ | 8,037 | $ | 632 | $ | 2,529 | $ | 1,825 | $ | 31,027 | |||||||||||||||||||||
Unpaid principal balance of impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 1,839 | $ | 3,060 | $ | 5,449 | $ | 5,146 | $ | 842 | $ | 2,303 | $ | 159 | $ | 18,798 | |||||||||||||||||||||
With a specific allowance recorded | 4,535 | 5,119 | 2,911 | 5,798 | 402 | 226 | 1,708 | 20,699 | |||||||||||||||||||||||||||||
Total unpaid principal balance of impaired loans | $ | 6,374 | $ | 8,179 | 8,360 | $ | 10,944 | $ | 1,244 | $ | 2,529 | $ | 1,867 | $ | 39,497 | ||||||||||||||||||||||
Specific allowance | $ | 859 | $ | 102 | $ | 125 | $ | 1,236 | $ | 74 | $ | 26 | $ | 381 | $ | 2,803 | |||||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended September 30, 2013 | 5,933 | 3,526 | 6,389 | 8,479 | 775 | 2,576 | 1,842 | 29,520 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended September 30, 2013 | 102 | 63 | 7 | 21 | 5 | 22 | 16 | 236 | |||||||||||||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended June 30, 2013 | 7,327 | 2,534 | 6,041 | 8,820 | 1,158 | 2,590 | 1,879 | 30,349 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended June 30, 2013 | 107 | 53 | — | 185 | 12 | 22 | 18 | 397 | |||||||||||||||||||||||||||||
Average recorded investment in impaired loans during the nine months ended September 30, 2013 | 7,584 | 2,861 | 6,178 | 7,138 | 1,022 | 2,744 | 1,881 | 29,408 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the nine months ended September 30, 2013 | 343 | 170 | 7 | 233 | 25 | 67 | 50 | 895 | |||||||||||||||||||||||||||||
(dollars in thousands; 2013 unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Total | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||
Recorded investment in impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 6,825 | $ | 1,403 | $ | 3,725 | $ | 2,328 | $ | 931 | $ | 2,598 | $ | 978 | $ | 18,788 | |||||||||||||||||||||
With a specific allowance recorded | 2,645 | 471 | 4,513 | 1,840 | 261 | 715 | 1,070 | 11,515 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 9,470 | $ | 1,874 | 8,238 | $ | 4,168 | $ | 1,192 | $ | 3,313 | $ | 2,048 | $ | 30,303 | ||||||||||||||||||||||
Unpaid principal balance of impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 7,633 | $ | 3,060 | $ | 5,717 | $ | 2,514 | $ | 1,417 | $ | 2,598 | $ | 1,020 | $ | 23,959 | |||||||||||||||||||||
With a specific allowance recorded | 2,930 | 966 | 4,887 | 4,519 | 324 | 715 | 1,070 | 15,411 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 10,563 | $ | 4,026 | 10,604 | $ | 7,033 | $ | 1,741 | $ | 3,313 | $ | 2,090 | $ | 39,370 | ||||||||||||||||||||||
Specific allowance | $ | 1,131 | $ | 26 | $ | 374 | $ | 118 | $ | 154 | $ | 120 | $ | 431 | $ | 2,354 | |||||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended September 30, 2012 | 9,882 | 1,865 | 6,418 | 13,442 | 1,499 | 2,641 | 2,230 | 37,977 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended September 30, 2012 | 351 | 28 | 30 | 141 | 10 | 13 | 15 | 588 | |||||||||||||||||||||||||||||
Average recorded investment in impaired loans during the nine months ended September 30, 2012 | 12,116 | 1,705 | 5,472 | 14,097 | 1,255 | 2,396 | 2,153 | 39,194 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the nine months ended September 30, 2012 | 672 | 97 | 95 | 462 | 22 | 88 | 51 | 1,487 | |||||||||||||||||||||||||||||
The gross interest income that would have been recorded had non-accrual loans been current totaled $291 thousand, $272 thousand and $387 thousand in the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012, respectively, and totaled $827 thousand and $870 thousand for the nine months ended September 30, 2013 and September 30, 2012, respectively. PCI loans are excluded from the foregone interest data above as their accretable yield interest recognition is independent from the underlying contractual loan delinquency status. See “Purchased Credit-Impaired Loans” below for further discussion. | |||||||||||||||||||||||||||||||||||||
Management monitors delinquent loans continuously and identifies problem loans, generally loans graded substandard or worse, to be evaluated individually for impairment testing. Generally, we charge off our estimated losses related to specifically-identified impaired loans when it is deemed uncollectible. The charged-off portion of impaired loans outstanding at September 30, 2013 totaled approximately $5.9 million. At September 30, 2013, there were $447 thousand outstanding commitments to extend credit on impaired loans, including loans to borrowers whose terms have been modified in troubled debt restructurings. | |||||||||||||||||||||||||||||||||||||
The following table discloses loans by major portfolio category and activity in the ALLL, as well as the related ALLL disaggregated by impairment evaluation method: | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,799 | $ | 1,406 | $ | 4,368 | $ | 1,721 | $ | 1,153 | $ | 401 | $ | 1,313 | $ | 196 | $ | 14,357 | |||||||||||||||||||
Provision (reversal) | (965 | ) | 427 | 1,338 | (210 | ) | (173 | ) | (124 | ) | (669 | ) | (104 | ) | (480 | ) | |||||||||||||||||||||
Charge-offs | (129 | ) | — | — | (24 | ) | — | — | (1 | ) | — | (154 | ) | ||||||||||||||||||||||||
Recoveries | 75 | — | 9 | — | — | — | 1 | — | 85 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,780 | $ | 1,833 | $ | 5,715 | $ | 1,487 | $ | 980 | $ | 277 | $ | 644 | $ | 92 | $ | 13,808 | |||||||||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,032 | $ | 1,348 | $ | 4,020 | $ | 650 | $ | 1,216 | $ | 431 | $ | 1,366 | $ | 371 | $ | 13,434 | |||||||||||||||||||
Provision (reversal) | (189 | ) | (26 | ) | 345 | 1,084 | 63 | (30 | ) | 28 | (175 | ) | 1,100 | ||||||||||||||||||||||||
Charge-offs | (386 | ) | — | — | (13 | ) | (126 | ) | — | (85 | ) | — | (610 | ) | |||||||||||||||||||||||
Recoveries | 342 | 84 | 3 | — | — | — | 4 | — | 433 | ||||||||||||||||||||||||||||
Ending balance | $ | 3,799 | $ | 1,406 | $ | 4,368 | $ | 1,721 | $ | 1,153 | $ | 401 | $ | 1,313 | $ | 196 | $ | 14,357 | |||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,100 | $ | 1,313 | $ | 4,372 | $ | 611 | $ | 1,264 | $ | 551 | $ | 1,231 | $ | 219 | $ | 13,661 | |||||||||||||||||||
Provision (reversal) | (1,204 | ) | 436 | 1,308 | 916 | (159 | ) | (274 | ) | (506 | ) | (127 | ) | 390 | |||||||||||||||||||||||
Charge-offs | (586 | ) | — | — | (41 | ) | (133 | ) | — | (87 | ) | — | (847 | ) | |||||||||||||||||||||||
Recoveries | 470 | 84 | 35 | 1 | 8 | — | 6 | — | 604 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,780 | $ | 1,833 | $ | 5,715 | $ | 1,487 | $ | 980 | $ | 277 | $ | 644 | $ | 92 | $ | 13,808 | |||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||
As of September 30, 2013: | |||||||||||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 1,921 | $ | 1,732 | $ | 5,590 | $ | 251 | $ | 906 | $ | 250 | $ | 263 | $ | 92 | $ | 11,005 | |||||||||||||||||||
Ending ALLL related to loans individually evaluated for impairment | $ | 676 | $ | 43 | $ | 125 | $ | 1,236 | $ | 74 | $ | 27 | $ | 381 | $ | — | $ | 2,562 | |||||||||||||||||||
Ending ALLL related to purchased credit-impaired loans | $ | 183 | $ | 58 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 241 | |||||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 162,701 | $ | 200,676 | $ | 540,232 | $ | 16,956 | $ | 85,572 | $ | 41,044 | $ | 13,906 | $ | — | $ | 1,061,087 | |||||||||||||||||||
Individually evaluated for impairment1 | 5,855 | 2,951 | 6,368 | 8,037 | 632 | 2,528 | 1,826 | — | 28,197 | ||||||||||||||||||||||||||||
Purchased credit-impaired | 284 | 2,546 | 737 | — | — | — | — | — | 3,567 | ||||||||||||||||||||||||||||
Total | $ | 168,840 | $ | 206,173 | $ | 547,337 | $ | 24,993 | $ | 86,204 | $ | 43,572 | $ | 15,732 | $ | — | $ | 1,092,851 | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 1.65 | % | 0.89 | % | 1.04 | % | 5.95 | % | 1.14 | % | 0.64 | % | 4.09 | % | NM | 1.26 | % | ||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 226 | % | 131 | % | 98 | % | 21 | % | 273 | % | 25 | % | 207 | % | NM | 80 | % | ||||||||||||||||||||
1 Total excludes $2.8 million of PCI loans that have experienced post-acquisition declines in cash flows expected to be collected.These loans are included in the "purchased credit-impaired" amount in the next line below. | |||||||||||||||||||||||||||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 2,969 | $ | 1,287 | $ | 3,998 | $ | 493 | $ | 1,110 | $ | 431 | $ | 800 | $ | 219 | $ | 11,307 | |||||||||||||||||||
Ending ALLL related to loans individually evaluated for impairment | $ | 1,090 | $ | — | $ | 178 | $ | 118 | $ | 154 | $ | 120 | $ | 431 | $ | — | $ | 2,091 | |||||||||||||||||||
Ending ALLL related to purchased credit-impaired loans | $ | 41 | $ | 26 | $ | 196 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 263 | |||||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 166,860 | $ | 193,891 | $ | 500,768 | $ | 26,497 | $ | 92,045 | $ | 46,119 | $ | 16,727 | $ | — | $ | 1,042,907 | |||||||||||||||||||
Individually evaluated for impairment1 | 8,931 | — | 6,844 | 4,168 | 1,192 | 3,313 | 2,048 | — | 26,496 | ||||||||||||||||||||||||||||
Purchased credit-impaired | 640 | 2,515 | 1,394 | — | — | — | — | — | 4,549 | ||||||||||||||||||||||||||||
Total | $ | 176,431 | $ | 196,406 | $ | 509,006 | $ | 30,665 | $ | 93,237 | $ | 49,432 | $ | 18,775 | $ | — | $ | 1,073,952 | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 2.32 | % | 0.67 | % | 0.86 | % | 1.99 | % | 1.36 | % | 1.11 | % | 6.56 | % | NM | 1.27 | % | ||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 84 | % | 94 | % | 64 | % | 27 | % | 232 | % | 46 | % | 231 | % | NM | 77 | % | ||||||||||||||||||||
1 Total excludes $3.8 million PCI loans that have experienced credit deterioration post-acquisition, which are included in the "purchased credit-impaired" amount in the next line below. | |||||||||||||||||||||||||||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,886 | $ | 1,148 | $ | 3,666 | $ | 985 | $ | 1,580 | $ | 562 | $ | 1,321 | $ | 287 | $ | 13,435 | |||||||||||||||||||
Provision (reversal) | 259 | 119 | 2,160 | (375 | ) | 2 | (39 | ) | 35 | (61 | ) | 2,100 | |||||||||||||||||||||||||
Charge-offs | (15 | ) | — | (2,236 | ) | (15 | ) | (149 | ) | — | (60 | ) | — | (2,475 | ) | ||||||||||||||||||||||
Recoveries | 78 | — | — | — | — | — | 1 | — | 79 | ||||||||||||||||||||||||||||
Ending balance | $ | 4,208 | $ | 1,267 | $ | 3,590 | $ | 595 | $ | 1,433 | $ | 523 | $ | 1,297 | $ | 226 | $ | 13,139 | |||||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,334 | $ | 1,305 | $ | 3,710 | $ | 1,505 | $ | 1,444 | $ | 940 | $ | 1,182 | $ | 219 | $ | 14,639 | |||||||||||||||||||
Provision (reversal) | 291 | 138 | 2,294 | (723 | ) | 236 | (221 | ) | 178 | 7 | 2,200 | ||||||||||||||||||||||||||
Charge-offs | (865 | ) | (181 | ) | (2,414 | ) | (187 | ) | (259 | ) | (196 | ) | (65 | ) | — | (4,167 | ) | ||||||||||||||||||||
Recoveries | 448 | 5 | — | — | 12 | — | 2 | — | 467 | ||||||||||||||||||||||||||||
Ending balance | $ | 4,208 | $ | 1,267 | $ | 3,590 | $ | 595 | $ | 1,433 | $ | 523 | $ | 1,297 | $ | 226 | $ | 13,139 | |||||||||||||||||||
Purchased Credit-Impaired Loans | |||||||||||||||||||||||||||||||||||||
We evaluated loans purchased in accordance with accounting guidance in ASC 310-30 related to loans acquired with deteriorated credit quality. Acquired loans are considered credit-impaired if there is evidence of deterioration of credit quality since origination and it is probable, at the acquisition date, that we will be unable to collect all contractually required payments receivable. Management has determined certain loans purchased to be PCI loans based on credit indicators such as nonaccrual status, past due status, loan risk grade, etc. Revolving credit agreements (e.g. home equity lines of credit and revolving commercial loans) are not considered PCI loans as cash flows cannot be reasonably estimated. | |||||||||||||||||||||||||||||||||||||
For acquired loans not considered credit-impaired, the difference between the contractual amounts due (principal amount) and the fair value is accounted for subsequently through accretion or amortization using an effective interest rate method for term loans and a straight line method for revolving lines. The accretion or amortization is recognized through the net interest margin. | |||||||||||||||||||||||||||||||||||||
The following table reflects the outstanding balance and related carrying value of PCI loans as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
PCI Loans | Unpaid principal balance | Carrying value | Unpaid principal balance | Carrying value | |||||||||||||||||||||||||||||||||
(dollars in thousands; 2013 unaudited) | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 519 | $ | 284 | $ | 2,163 | $ | 640 | |||||||||||||||||||||||||||||
Commercial real estate | 5,420 | 3,283 | 6,370 | 3,909 | |||||||||||||||||||||||||||||||||
Total purchased credit-impaired loans | $ | 5,939 | $ | 3,567 | $ | 8,533 | $ | 4,549 | |||||||||||||||||||||||||||||
The activities in the accretable yield, or income expected to be earned, for PCI loans were as follows: | |||||||||||||||||||||||||||||||||||||
Accretable Yield | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,277 | $ | 3,583 | $ | 5,386 | $ | 3,960 | $ | 5,405 | |||||||||||||||||||||||||||
Additions | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Removals 1 | — | (195 | ) | — | (791 | ) | (225 | ) | |||||||||||||||||||||||||||||
Accretion | (153 | ) | (156 | ) | (231 | ) | (545 | ) | (1,219 | ) | |||||||||||||||||||||||||||
Reclassifications from nonaccretable difference 2 | — | 45 | 20 | 500 | 1,214 | ||||||||||||||||||||||||||||||||
Balance at end of period | $ | 3,124 | $ | 3,277 | $ | 5,175 | $ | 3,124 | $ | 5,175 | |||||||||||||||||||||||||||
1 Represents the accretable difference that is relieved when a loan exits the PCI population due to payoff, full charge-off, or transfer to repossessed assets, etc. | |||||||||||||||||||||||||||||||||||||
2 Primarily relates to improvements in expected credit performance and changes in expected timing of cash flows. | |||||||||||||||||||||||||||||||||||||
Pledged Loans | |||||||||||||||||||||||||||||||||||||
Our FHLB line of credit is secured under terms of a blanket collateral agreement by a pledge of certain qualifying loans with an unpaid principal balance of $702.2 million and $567.8 million at September 30, 2013 and December 31, 2012, respectively. Our FHLB line of credit totaled $414.8 million and $321.3 million at September 30, 2013 and December 31, 2012, respectively. In addition, we pledge a certain residential loan portfolio, which totaled $24.9 million and $30.1 million at September 30, 2013 and December 31, 2012, respectively, to secure our borrowing capacity with the Federal Reserve Bank (“FRB”). Also see Note 7 below. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Borrowings | ' |
Borrowings | |
Federal Funds Purchased – We had unsecured lines of credit totaling $87.0 million with correspondent banks for overnight borrowings at both September 30, 2013 and December 31, 2012. In general, interest rates on these lines approximate the Federal Funds target rate. At September 30, 2013 and December 31, 2012, we had no overnight borrowings outstanding under these credit facilities. | |
Federal Home Loan Bank Borrowings – As of September 30, 2013 and December 31, 2012, we had lines of credit with the FHLB totaling $414.8 million and $321.3 million, respectively, based on eligible collateral of certain loans. At September 30, 2013 and December 31, 2012, we had no FHLB overnight borrowings. | |
On February 5, 2008, we entered into a ten-year borrowing agreement under the same FHLB line of credit for $15.0 million at a fixed rate of 2.07%, which remained outstanding at September 30, 2013. Interest-only payments are required every three months until the entire principal is due on February 5, 2018. The FHLB has the unconditional right to accelerate the due date on November 5, 2013 and every three months thereafter (the “put dates”). If the FHLB exercises its right to accelerate the due date, the FHLB will offer replacement funding at the current market rate, subject to certain conditions. We must comply with the put date, but are not required to accept replacement funding. | |
At September 30, 2013, $399.8 million was remaining as available for borrowing from the FHLB. The FHLB overnight borrowing and the FHLB line of credit are secured by a certain loan portfolio under a blanket lien. | |
Federal Reserve Line of Credit – We have a line of credit with the FRB secured by a certain residential loan portfolio. At September 30, 2013 and December 31, 2012, we had borrowing capacity under this line totaling $24.9 million and $30.1 million, respectively, and had no outstanding borrowings with the FRB. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
Stockholders' Equity | |||||||||||||||||
Preferred Stock | |||||||||||||||||
Under the United States Department of the Treasury Capital Purchase Program (the “TCPP”), which was intended to stabilize and inject liquidity into the financial industry, on December 5, 2008, Bancorp issued to the U.S. Treasury 28,000 shares of senior preferred stock with a zero par value and a $1,000 per share liquidation preference, along with a warrant to purchase 154,242 shares of common stock at a per share exercise price of $27.23, in exchange for aggregate consideration of $28.0 million. The proceeds of $28.0 million were allocated between the preferred stock and the warrant with $27.0 million allocated to preferred stock and $961 thousand allocated to the warrant, based on their relative fair value at the time of issuance. The warrant was immediately exercisable and expires 10 years after the issuance date. | |||||||||||||||||
Under the American Recovery and Reinvestment Act of 2009, which allowed participants in the TCPP to withdraw from the program, we repurchased all 28,000 shares of outstanding preferred stock from the U.S. Treasury at $28 million plus accrued but unpaid dividends of $179 thousand on March 31, 2009. At the time of repurchase, we also accelerated the remaining accretion of the preferred stock totaling $945 thousand through retained earnings, reducing our net income available to common stockholders. The warrant was subsequently auctioned to two institutional investors in November 2011 and remains outstanding. It is adjusted for cash dividend increases to represent a right to purchase 155,954 shares of common stock at $26.93 per share as of September 30, 2013 in accordance with Section 13(c) of the Form of Warrant to Purchase Common Stock. | |||||||||||||||||
Dividends | |||||||||||||||||
Presented below is a summary of cash dividends paid to common shareholders, recorded as a reduction of retained earnings. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
(in thousands except per share data, unaudited) | September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||
Cash dividends to common stockholders | $ | 982 | $ | 979 | $ | 965 | $ | 2,932 | $ | 2,784 | |||||||
Cash dividends per common share | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.54 | $ | 0.52 | |||||||
Share-Based Payments | |||||||||||||||||
The fair value of stock options on the grant date is recorded as a stock-based compensation expense in the consolidated statements of comprehensive income over the requisite service period with a corresponding increase in common stock. Stock-based compensation also includes compensation expense related to the issuance of unvested restricted common shares pursuant to the 2007 Equity Plan. The grant-date fair value of the restricted common shares, which equals its intrinsic value on that date, is being recorded as compensation expense over the requisite service period with a corresponding increase in common stock as the shares vest. In addition, we record excess tax benefits on the exercise | |||||||||||||||||
of non-qualified stock options, the disqualifying disposition of incentive stock options and vesting of restricted stock as an addition to common stock with a corresponding decrease in current taxes payable. | |||||||||||||||||
The holders of the unvested restricted common shares are entitled to dividends on the same per-share ratio as the holders of common stock. Dividends paid on the portion of share-based awards not expected to vest are also included in stock-based compensation expense. Tax benefits on dividends paid on the portion of share-based awards expected to vest are recorded as an increase to common stock with a corresponding decrease in current taxes payable. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||||||||||||||||||
We make commitments to extend credit in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit in the form of loans or through standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amount does not necessarily represent future cash requirements. | ||||||||||||||||||||||
We are exposed to credit loss equal to the contract amount of the commitment in the event of nonperformance by the borrower. We use the same credit policies in making commitments as we do for on-balance-sheet instruments and we evaluate each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us, is based on Management's credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and real property. | ||||||||||||||||||||||
The contractual amount of loan commitments and standby letters of credit not reflected on the consolidated statements of condition was $294.4 million at September 30, 2013 at rates ranging from 1.70% to 18.00%. This amount included $155.5 million under commercial lines of credit (these commitments are contingent upon customers maintaining specific credit standards), $87.7 million under revolving home equity lines, $27.3 million under undisbursed construction loans, $13.1 million under standby letters of credit, and a remaining $10.8 million under personal and other lines of credit. We have set aside an allowance for losses in the amount of $589 thousand for these commitments as of September 30, 2013, which is recorded in interest payable and other liabilities on the consolidated statements of condition. | ||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||
We rent certain premises and equipment under long-term, non-cancelable operating leases expiring at various dates through the year 2024. Most of the leases contain certain renewal options and escalation clauses. At September 30, 2013, the approximate minimum future commitments payable under non-cancelable contracts for leased premises are as follows: | ||||||||||||||||||||||
(in thousands) | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
Operating leases | $ | 718 | $ | 2,806 | $ | 2,881 | $ | 2,964 | $ | 2,986 | $ | 12,109 | $ | 24,464 | ||||||||
Litigation and Regulatory Matters | ||||||||||||||||||||||
We may be party to legal actions which arise from time to time as part of the normal course of our business. We believe, after consultation with legal counsel, that we have meritorious defenses in these actions, and that litigation contingency liability, if any, will not have a material adverse effect on our financial position, results of operations, or cash flows. | ||||||||||||||||||||||
We are responsible for our proportionate share of certain litigation indemnifications provided to Visa U.S.A. by its member banks in connection with lawsuits related to anti-trust charges and interchange fees. On July 13, 2012, Visa U.S.A. signed a memorandum of understanding to enter into a settlement agreement to resolve the Class Plaintiffs' claims and an agreement in principle to resolve the Individual Plaintiffs' claims in the same multi-district interchange litigation. The settlement includes a cash payment through further reduction in conversion rate of Visa Class B shares by member banks and a ten basis point reduction in credit card interchange rates for eight months. A number of procedural steps remain before this settlement can become final and the full impact to member banks like us is still uncertain. However, we are not aware of significant future cash settlement payments required by us on the litigation and the ten basis point reduction in credit card interchange fees for us is not expected to be material. Also refer to Note 13 to the Consolidated Financial Statements of the Bancorp’s 2012 Annual Report on Form 10-K. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | ' | ||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | |||||||||||||||||||
We have entered into interest rate swap agreements, primarily as an asset/liability management strategy, in order to mitigate the changes in the fair value of specified long-term fixed-rate loans (or firm commitments to enter into long-term fixed-rate loans) caused by changes in interest rates. These hedges allow us to offer long-term fixed rate loans to customers without assuming the interest rate risk of a long-term asset. Converting our fixed-rate interest payments to floating-rate interest payments, generally benchmarked to the one-month U.S. dollar LIBOR index, protects us against changes in the fair value of our loans otherwise associated with fluctuating interest rates. | |||||||||||||||||||
The fixed-rate payment features of the interest rate swap agreements are generally structured at inception to mirror substantially all of the provisions of the hedged loan agreements. These interest rate swaps, designated and qualified as fair value hedges, are carried on the consolidated statements of condition at their fair value in other assets (when the fair value is positive) or in other liabilities (when the fair value is negative). One of our interest rate swap agreements qualifies for shortcut hedge accounting treatment. The change in fair value of the swap using the shortcut accounting treatment is recorded in other non-interest income, while the change in fair value of swaps using non-shortcut accounting is recorded in interest income. The unrealized gain or loss in fair value of the hedged fixed-rate loan due to LIBOR interest rate movements is recorded as an adjustment to the hedged loan and offset in other non-interest income (for shortcut accounting treatment) or interest income (for non-shortcut accounting treatment). | |||||||||||||||||||
From time to time, we make firm commitments to enter into long-term fixed-rate loans with borrowers backed by yield maintenance agreements and simultaneously enter into forward interest rate swap agreements with correspondent banks to mitigate the change in fair value of the yield maintenance agreement. Prior to loan funding, yield maintenance agreements with net settlement features that meet the definition of a derivative are considered as non-designated hedges and are carried on the consolidated statements of condition at their fair value in other assets (when the fair value is positive) or in other liabilities (when the fair value is negative). The offsetting changes in the fair value of the forward swap and the yield maintenance agreement are recorded in interest income. In June 2007, August 2010 and June 2011, three previously undesignated forward swaps were designated to offset the change in fair value of a fixed-rate loan originated in each of those periods. Subsequent to the point of the swap designations, the related yield maintenance agreements are no longer considered derivatives. Their fair value at the designation date was recorded in other assets and is amortized using the effective yield method over the life of the respective designated loans. | |||||||||||||||||||
The net effect of the change in fair value of interest rate swaps, the amortization of the yield maintenance agreement and the change in the fair value of the hedged loans result in an insignificant amount of hedge ineffectiveness recognized in interest income. | |||||||||||||||||||
Our credit exposure, if any, on interest rate swaps is limited to the favorable value (net of any collateral pledged to us) and interest payments of all swaps by each counterparty. Conversely, when an interest rate swap is in a liability position exceeding a certain threshold, we may be required to post collateral to the counterparty in an amount determined by the agreements (generally when our derivative liability position is greater than $100 thousand or $1.3 million, depending upon the counterparty). Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values. As of September 30, 2013, seven of our ten derivative instruments are currently in a liability position totaling $3.1 million and have collateral requirements, for which we have posted cash collateral of $2.8 million. | |||||||||||||||||||
As of September 30, 2013, we have ten interest rate swap agreements, which are scheduled to mature in September 2018, April 2019, June 2020, August 2020, June 2022, June 2031, October 2031, July 2032, August 2037 and October 2037. All of our derivatives are accounted for as fair value hedges. Our interest rate swaps are settled monthly with counterparties. Accrued interest on the swaps totaled $69 thousand and $75 thousand as of September 30, 2013 and December 31, 2012, respectively. Information on our derivatives follows: | |||||||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||||||
(in thousands; 2013 unaudited) | September 30, 2013 | December 31, 2012 | September 30, 2013 | 31-Dec-12 | |||||||||||||||
Fair value hedges: | |||||||||||||||||||
Interest rate contracts notional amount | $ | 10,658 | $ | 4,932 | $ | 30,773 | $ | 38,156 | |||||||||||
Interest rate contracts fair value1 | $ | 646 | $ | 1 | $ | 3,085 | $ | 5,240 | |||||||||||
Three months ended | |||||||||||||||||||
(in thousands; unaudited) | September 30, 2013 | June 30, 2013 | September 30, 2012 | ||||||||||||||||
Increase (decrease) in value of designated interest rate swaps recognized in interest income | $ | 196 | $ | 1,956 | $ | (217 | ) | ||||||||||||
Payment on interest rate swaps recorded in interest income | (358 | ) | (359 | ) | (339 | ) | |||||||||||||
(Decrease) increase in value of hedged loans recognized in interest income | (245 | ) | (2,095 | ) | 402 | ||||||||||||||
Decrease in value of yield maintenance agreement recognized against interest income | (18 | ) | (18 | ) | (19 | ) | |||||||||||||
Net loss on derivatives recognized against interest income 2 | $ | (425 | ) | $ | (516 | ) | $ | (173 | ) | ||||||||||
Nine months ended | |||||||||||||||||||
(in thousands; unaudited) | September 30, 2013 | September 30, 2012 | |||||||||||||||||
Increase (decrease) in value of designated interest rate swaps recognized in interest income | $ | 2,800 | $ | (574 | ) | ||||||||||||||
Payment on interest rate swaps recorded in interest income | (1,075 | ) | (973 | ) | |||||||||||||||
(Decrease) increase in value of hedged loans recognized in interest income | (3,033 | ) | 762 | ||||||||||||||||
(Decrease) increase in value of yield maintenance agreement recognized against interest income | (54 | ) | 185 | ||||||||||||||||
Net loss on derivatives recognized against interest income 2 | $ | (1,362 | ) | $ | (600 | ) | |||||||||||||
1 See Note 4 for valuation methodology. | |||||||||||||||||||
2 Includes hedge ineffectiveness of $(67) thousand, $(157) thousand and $166 thousand for the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012, respectively. Ineffectiveness of $(287) thousand and $373 thousand was recorded in interest income during the nine months ended September 30, 2013 and September 30, 2012, respectively. Changes in value of swaps were included in the assessment of hedge effectiveness. | |||||||||||||||||||
Our derivative transactions with counterparties are under International Swaps and Derivative Association (“ISDA”) master agreements that include “right of set-off” provisions. “Right of set-off” provisions are legally enforceable rights to offset recognized amounts and there may be an intention to settle such amounts on a net basis. We do not offset such financial instruments for financial reporting purposes. | |||||||||||||||||||
Information on financial instruments that are eligible for offset in the consolidated statements of condition follows: | |||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||
(in thousands; 2013 unaudited) | Gross Amounts Not Offset in the Statements of Condition | ||||||||||||||||||
Gross Amounts | Net Amounts | ||||||||||||||||||
Gross Amounts | Offset in the | of Assets Presented | |||||||||||||||||
of Recognized | Statements of | in the Statements | Financial | Cash Collateral | |||||||||||||||
Assets1 | Condition | of Condition1 | Instruments | Received | Net Amount | ||||||||||||||
As of September 30, 2013 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 646 | $ | — | $ | 646 | $ | (646 | ) | $ | — | $ | — | ||||||
Counterparty B | — | — | — | — | — | — | |||||||||||||
Total | $ | 646 | $ | — | $ | 646 | $ | (646 | ) | $ | — | $ | — | ||||||
As of December 31, 2012 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 1 | $ | — | $ | 1 | $ | (1 | ) | $ | — | $ | — | ||||||
Counterparty B | — | — | — | — | — | — | |||||||||||||
Total | $ | 1 | $ | — | $ | 1 | $ | (1 | ) | $ | — | $ | — | ||||||
1 Amounts exclude accrued interest totaling $7 thousand and $1 thousand at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||
(in thousands; 2013 unaudited) | Gross Amounts Not Offset in the Statements of Condition | ||||||||||||||||||
Gross Amounts | Net Amounts of | ||||||||||||||||||
Gross Amounts | Offset in the | Liabilities Presented | |||||||||||||||||
of Recognized | Statements of | in the Statements of | Financial | Cash Collateral | |||||||||||||||
Liabilities2 | Condition | Condition2 | Instruments | Pledged | Net Amount | ||||||||||||||
As of September 30, 2013 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 1,180 | $ | — | $ | 1,180 | $ | (646 | ) | — | $ | 534 | |||||||
Counterparty B | 1,905 | — | 1,905 | — | (1,905 | ) | — | ||||||||||||
Total | $ | 3,085 | $ | — | $ | 3,085 | $ | (646 | ) | $ | (1,905 | ) | $ | 534 | |||||
As of December 31, 2012 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 2,616 | $ | — | $ | 2,616 | $ | (1 | ) | $ | (1,860 | ) | $ | 755 | |||||
Counterparty B | 2,624 | — | 2,624 | — | (2,624 | ) | — | ||||||||||||
Total | $ | 5,240 | $ | — | $ | 5,240 | $ | (1 | ) | $ | (4,484 | ) | $ | 755 | |||||
2 Amounts exclude accrued interest totaling $62 thousand and $74 thousand at September 30, 2013 and December 31, 2012, respectively. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Accounting, Policy | ' |
The consolidated financial statements include the accounts of Bancorp and its only wholly-owned bank subsidiary, the Bank. All material intercompany transactions have been eliminated. In the opinion of Management, the unaudited interim consolidated financial statements contain all adjustments necessary to present fairly our financial position, results of operations, changes in stockholders' equity and cash flows. All adjustments are of a normal, recurring nature. Management has evaluated subsequent events through the date of filing, and has determined that there are no subsequent events that require recognition or disclosure except the pending NorCal Community Bancorp ("NorCal") acquisition as discussed in Note 3. | |
Earnings Per Share, Policy | ' |
Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock. Diluted EPS are calculated using the weighted average diluted shares. The number of potential common shares included in quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potential common shares included in year-to-date diluted EPS is a year-to-date weighted average of potential common shares included in each quarterly diluted EPS computation. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share Reconciliation | ' | ||||||||||||||||
The following table shows: 1) weighted average basic shares, 2) potential common shares related to stock options, unvested restricted stock and stock warrant, and 3) weighted average diluted shares. Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock. Diluted EPS are calculated using the weighted average diluted shares. The number of potential common shares included in quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potential common shares included in year-to-date diluted EPS is a year-to-date weighted average of potential common shares included in each quarterly diluted EPS computation. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
(in thousands; except per share data; unaudited) | September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Weighted average basic shares outstanding | 5,433 | 5,419 | 5,344 | 5,414 | 5,335 | ||||||||||||
Add: Potential common shares related to stock options | 46 | 39 | 55 | 43 | 48 | ||||||||||||
Potential common shares related to unvested restricted stock | 4 | 2 | 9 | 4 | 6 | ||||||||||||
Potential common shares related to the warrant | 55 | 49 | 47 | 50 | 44 | ||||||||||||
Weighted average diluted shares outstanding | 5,538 | 5,509 | 5,455 | 5,511 | 5,433 | ||||||||||||
Net income | $ | 4,004 | $ | 3,055 | $ | 3,224 | $ | 11,925 | $ | 13,115 | |||||||
Basic EPS | $ | 0.74 | $ | 0.56 | $ | 0.6 | $ | 2.2 | $ | 2.46 | |||||||
Diluted EPS | $ | 0.72 | $ | 0.55 | $ | 0.59 | $ | 2.16 | $ | 2.41 | |||||||
Weighted average anti-dilutive shares not included in the calculation of diluted EPS | 51 | 60 | 41 | 48 | 33 | ||||||||||||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis. | |||||||||||||||||
(in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Description of Financial Instruments | |||||||||||||||||
At September 30, 2013 (unaudited): | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 85,108 | $ | — | $ | 85,108 | $ | — | |||||||||
Debentures of government-sponsored agencies | $ | 18,954 | $ | — | $ | 18,954 | $ | — | |||||||||
Privately-issued collateralized mortgage obligations | $ | 15,278 | $ | — | $ | 15,278 | $ | — | |||||||||
Derivative financial assets (interest rate contracts) | $ | 646 | $ | — | $ | 646 | $ | — | |||||||||
Derivative financial liabilities (interest rate contracts) | $ | 3,085 | $ | — | $ | 3,085 | $ | — | |||||||||
At December 31, 2012: | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 111,797 | $ | — | $ | 111,797 | $ | — | |||||||||
Debentures of government-sponsored agencies | $ | 20,589 | $ | — | $ | 20,589 | $ | — | |||||||||
Privately-issued collateralized mortgage obligations | $ | 21,576 | $ | — | $ | 21,576 | $ | — | |||||||||
Derivative financial assets (interest rate contracts) | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||
Derivative financial liabilities (interest rate contracts) | $ | 5,240 | $ | — | $ | 5,240 | $ | — | |||||||||
Fair Value Measurements, Nonrecurring | ' | ||||||||||||||||
The following table presents the carrying value of financial instruments that were measured at fair value on a nonrecurring basis and that were still held in the statements of condition at each respective period end, by level within the fair value hierarchy as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
(in thousands) | Carrying Value1 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Description of Financial Instruments | (Level 1) | (Level 2) | (Level 3) 1 | ||||||||||||||
At September 30, 2013 (unaudited): | |||||||||||||||||
Impaired loans carried at fair value: | |||||||||||||||||
Commercial real estate, investor | $ | 2,786 | $ | — | $ | — | $ | 2,786 | |||||||||
Construction | 3,971 | — | — | 3,971 | |||||||||||||
Home equity | 45 | — | — | 45 | |||||||||||||
Installment and other consumer | 143 | — | — | 143 | |||||||||||||
Total | $ | 6,945 | $ | — | $ | — | $ | 6,945 | |||||||||
At December 31, 2012: | |||||||||||||||||
Impaired loans carried at fair value: | |||||||||||||||||
Commercial and industrial | $ | 51 | $ | — | $ | — | $ | 51 | |||||||||
Commercial real estate, investor | 2,941 | — | — | 2,941 | |||||||||||||
Construction | 1,722 | — | — | 1,722 | |||||||||||||
Home equity | 107 | — | — | 107 | |||||||||||||
Other residential | 594 | — | — | 594 | |||||||||||||
Installment and other consumer | 159 | — | — | 159 | |||||||||||||
Total | $ | 5,574 | $ | — | $ | — | $ | 5,574 | |||||||||
1 Represents collateral-dependent loan principal balances that had been generally written down to the values of the underlying collateral, net of specific valuation allowances of $1.5 million and $729 thousand at September 30, 2013 and December 31, 2012, respectively. The carrying value of loans fully charged-off, which includes unsecured lines of credit, overdrafts and all other loans, is zero. | |||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||
The table below is a summary of fair value estimates for financial instruments as of September 30, 2013 and December 31, 2012, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. We have excluded non-financial assets and non-financial liabilities defined by the Codification (ASC 820-10-15-1A), such as Bank premises and equipment, deferred taxes and other liabilities. In addition, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as Bank-owned life insurance policies. | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
(in thousands; 2013 unaudited) | Carrying Amounts | Fair Value | Fair Value Hierarchy | Carrying Amounts | Fair Value | Fair Value Hierarchy | |||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 99,358 | $ | 99,358 | Level 1 | $ | 28,349 | $ | 28,349 | Level 1 | |||||||
Investment securities held-to-maturity | 130,085 | 131,567 | Level 2 | 139,452 | 142,231 | Level 2 | |||||||||||
Loans, net | 1,079,043 | 1,097,619 | Level 3 | 1,060,291 | 1,111,355 | Level 3 | |||||||||||
Interest receivable | 4,665 | 4,665 | Level 2 | 5,073 | 5,073 | Level 2 | |||||||||||
Financial liabilities | |||||||||||||||||
Deposits | 1,292,476 | 1,293,741 | Level 2 | 1,253,289 | 1,254,713 | Level 2 | |||||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,715 | Level 2 | 15,000 | 15,989 | Level 2 | |||||||||||
Interest payable | 193 | 193 | Level 2 | 225 | 225 | Level 2 | |||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Available-for-sale Securities and Held-to-maturity Securities Reconciliation | ' | |||||||||||||||||||||||||
Our investment securities portfolio consists of obligations of state and political subdivisions, corporate bonds, U.S. government agency securities, including mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) issued or guaranteed by Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), or Government National Mortgage Association ("GNMA"), debentures issued by government-sponsored agencies such as FNMA and FHLMC, as well as privately issued CMOs, as reflected in the table below: | ||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||
Amortized | Fair | Gross Unrealized | Amortized | Fair | Gross Unrealized | |||||||||||||||||||||
(in thousands; 2013 unaudited) | Cost | Value | Gains | (Losses) | Cost | Value | Gains | (Losses) | ||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
Obligations of state and | $ | 87,867 | $ | 89,057 | $ | 1,935 | $ | (745 | ) | $ | 96,922 | $ | 99,350 | $ | 2,855 | $ | (427 | ) | ||||||||
political subdivisions | ||||||||||||||||||||||||||
Corporate bonds | 42,218 | 42,510 | 382 | (90 | ) | 42,530 | 42,881 | 458 | (107 | ) | ||||||||||||||||
Total held-to-maturity | 130,085 | 131,567 | 2,317 | (835 | ) | 139,452 | 142,231 | 3,313 | (534 | ) | ||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
Securities of U. S. government agencies: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 46,553 | 46,763 | 725 | (515 | ) | 52,042 | 53,713 | 1,711 | (40 | ) | ||||||||||||||||
CMOs issued by FNMA | 1,342 | 1,416 | 74 | — | 4,447 | 4,550 | 105 | (2 | ) | |||||||||||||||||
CMOs issued by FHLMC | 8,940 | 9,084 | 166 | (22 | ) | 13,527 | 13,778 | 251 | — | |||||||||||||||||
CMOs issued by GNMA | 27,133 | 27,845 | 745 | (33 | ) | 38,871 | 39,756 | 886 | (1 | ) | ||||||||||||||||
Debentures of government- sponsored agencies | 19,365 | 18,954 | 130 | (541 | ) | 20,462 | 20,589 | 228 | (101 | ) | ||||||||||||||||
Privately-issued CMOs | 15,020 | 15,278 | 320 | (62 | ) | 21,071 | 21,576 | 595 | (90 | ) | ||||||||||||||||
Total available-for-sale | 118,353 | 119,340 | 2,160 | (1,173 | ) | 150,420 | 153,962 | 3,776 | (234 | ) | ||||||||||||||||
Total investment securities | $ | 248,438 | $ | 250,907 | $ | 4,477 | $ | (2,008 | ) | $ | 289,872 | $ | 296,193 | $ | 7,089 | $ | (768 | ) | ||||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||||||||||||
The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2013 are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | |||||||||||||||||||||||||
(in thousands; unaudited) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Within one year | $ | 8,331 | $ | 8,340 | $ | — | $ | — | ||||||||||||||||||
After one year but within five years | 92,671 | 93,521 | 27,536 | 27,791 | ||||||||||||||||||||||
After five years through ten years | 26,094 | 26,779 | 18,132 | 17,528 | ||||||||||||||||||||||
After ten years | 2,989 | 2,927 | 72,685 | 74,021 | ||||||||||||||||||||||
Total | $ | 130,085 | $ | 131,567 | $ | 118,353 | $ | 119,340 | ||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||||||||||||||||
Fifty-two and fifty-five investment securities were in unrealized loss positions at September 30, 2013 and December 31, 2012, respectively. They are summarized and classified according to the duration of the loss period as follows: | ||||||||||||||||||||||||||
September 30, 2013 | < 12 continuous months | > 12 continuous months | Total Securities | |||||||||||||||||||||||
in a loss position | ||||||||||||||||||||||||||
(In thousands; unaudited) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
Obligations of state & political subdivisions | $ | 24,675 | $ | (711 | ) | 2,551 | (34 | ) | $ | 27,226 | $ | (745 | ) | |||||||||||||
Corporate bonds | 10,002 | (89 | ) | 1,434 | (1 | ) | 11,436 | (90 | ) | |||||||||||||||||
Total held-to-maturity | 34,677 | (800 | ) | 3,985 | (35 | ) | 38,662 | (835 | ) | |||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 16,612 | (515 | ) | — | — | 16,612 | (515 | ) | ||||||||||||||||||
CMOs issued by FHLMC | 2,716 | (22 | ) | — | — | 2,716 | (22 | ) | ||||||||||||||||||
CMOs issued by GNMA | 4,190 | (33 | ) | — | — | 4,190 | (33 | ) | ||||||||||||||||||
Debentures of government- sponsored agencies | 14,459 | (541 | ) | — | — | 14,459 | (541 | ) | ||||||||||||||||||
Privately issued CMOs | 5,615 | (61 | ) | 167 | (1 | ) | 5,782 | (62 | ) | |||||||||||||||||
Total available-for-sale | 43,592 | (1,172 | ) | 167 | (1 | ) | 43,759 | (1,173 | ) | |||||||||||||||||
Total temporarily impaired securities | $ | 78,269 | $ | (1,972 | ) | $ | 4,152 | $ | (36 | ) | $ | 82,421 | $ | (2,008 | ) | |||||||||||
December 31, 2012 | < 12 continuous months | > 12 continuous months | Total Securities | |||||||||||||||||||||||
in a loss position | ||||||||||||||||||||||||||
(In thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
Obligations of state & political subdivisions | $ | 33,196 | $ | (427 | ) | $ | — | $ | — | $ | 33,196 | $ | (427 | ) | ||||||||||||
Corporate bonds | 15,649 | (107 | ) | — | — | 15,649 | (107 | ) | ||||||||||||||||||
Total held-to-maturity | 48,845 | (534 | ) | — | — | 48,845 | (534 | ) | ||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 3,569 | -40 | — | — | 3,569 | -40 | ||||||||||||||||||||
CMOs issued by FNMA | 3,185 | -2 | — | — | 3,185 | -2 | ||||||||||||||||||||
CMOs issued by GNMA | 1,550 | -1 | — | — | 1,550 | -1 | ||||||||||||||||||||
Debentures of government- sponsored agencies | 9,899 | -101 | — | — | 9,899 | -101 | ||||||||||||||||||||
Privately issued CMOs | 4,214 | -89 | 203 | -1 | 4,417 | -90 | ||||||||||||||||||||
Total available-for-sale | 22,417 | -233 | 203 | -1 | 22,620 | -234 | ||||||||||||||||||||
Total temporarily impaired securities | $ | 71,262 | $ | (767 | ) | $ | 203 | $ | (1 | ) | $ | 71,465 | $ | (768 | ) | |||||||||||
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables | ' | ||||||||||||||||||||||||||||||||||||
Outstanding loans by class and payment aging as of September 30, 2013 and December 31, 2012 are as follows: | |||||||||||||||||||||||||||||||||||||
Loan Aging Analysis by Class as of September 30, 2013 and December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2013 unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential 1 | Installment and other consumer | Total | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||
30-59 days past due | $ | 5 | $ | — | $ | — | $ | 1,720 | $ | — | $ | — | $ | 246 | $ | 1,971 | |||||||||||||||||||||
60-89 days past due | — | — | — | — | 240 | — | 2 | 242 | |||||||||||||||||||||||||||||
Greater than 90 days past due (non-accrual) 2 | 1,229 | 1,403 | 5,832 | 7,045 | 359 | 1,117 | 311 | 17,296 | |||||||||||||||||||||||||||||
Total past due | 1,234 | 1,403 | 5,832 | 8,765 | 599 | 1,117 | 559 | 19,509 | |||||||||||||||||||||||||||||
Current | 167,606 | 204,770 | 541,505 | 16,228 | 85,605 | 42,455 | 15,173 | 1,073,342 | |||||||||||||||||||||||||||||
Total loans 3 | $ | 168,840 | $ | 206,173 | $ | 547,337 | $ | 24,993 | $ | 86,204 | $ | 43,572 | $ | 15,732 | $ | 1,092,851 | |||||||||||||||||||||
Non-accrual loans to total loans | 0.7 | % | 0.7 | % | 1.1 | % | 28.2 | % | 0.4 | % | 2.6 | % | 2 | % | 1.6 | % | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
30-59 days past due | $ | 29 | $ | — | $ | — | $ | — | $ | 294 | $ | 167 | $ | 98 | $ | 588 | |||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Greater than 90 days past due (non-accrual) 2 | 4,893 | 1,403 | 6,843 | 2,239 | 545 | 1,196 | 533 | 17,652 | |||||||||||||||||||||||||||||
Total past due | 4,922 | 1,403 | 6,843 | 2,239 | 839 | 1,363 | 631 | 18,240 | |||||||||||||||||||||||||||||
Current | 171,509 | 195,003 | 502,163 | 28,426 | 92,398 | 48,069 | 18,144 | 1,055,712 | |||||||||||||||||||||||||||||
Total loans 3 | $ | 176,431 | $ | 196,406 | $ | 509,006 | $ | 30,665 | $ | 93,237 | $ | 49,432 | $ | 18,775 | $ | 1,073,952 | |||||||||||||||||||||
Non-accrual loans to total loans | 2.8 | % | 0.7 | % | 1.3 | % | 7.3 | % | 0.6 | % | 2.4 | % | 2.8 | % | 1.6 | % | |||||||||||||||||||||
1 Our residential loan portfolio includes no sub-prime loans, nor is it our normal practice to underwrite loans commonly referred to as "Alt-A mortgages", the characteristics of which are loans lacking full documentation, borrowers having low FICO scores or higher loan-to-value ratios. | |||||||||||||||||||||||||||||||||||||
2 Amounts include $1.4 million and $1.6 million of Purchased Credit Impaired ("PCI") loans that have stopped accreting interest at September 30, 2013 and December 31, 2012, respectively, and exclude accreting PCI loans of $2.2 million and $3.0 million at September 30, 2013 and December 31, 2012, respectively, as their accretable yield interest recognition is independent from the underlying contractual loan delinquency status. There were no accruing loans past due more than ninety days at September 30, 2013 or December 31, 2012. | |||||||||||||||||||||||||||||||||||||
3 Amounts were net of deferred loan fees of $107 thousand and $769 thousand at September 30, 2013 and December 31, 2012, respectively. Amounts were also net of unaccreted purchase discounts on non-PCI loans of $1.5 million and $2.1 million at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | ' | ||||||||||||||||||||||||||||||||||||
The following table represents our analysis of loans by internally assigned grades, including the PCI loans, at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||
(in thousands; 2013 unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Purchased credit-impaired | Total | ||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade: | |||||||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||
Pass | $ | 148,974 | $ | 183,754 | $ | 529,573 | $ | 16,669 | $ | 81,629 | $ | 40,082 | $ | 14,965 | $ | 1,328 | $ | 1,016,974 | |||||||||||||||||||
Special Mention | 14,613 | 16,626 | 8,575 | 1,278 | 2,082 | 1,052 | — | 737 | 44,963 | ||||||||||||||||||||||||||||
Substandard | 4,970 | 3,246 | 8,452 | 7,046 | 2,493 | 2,438 | 767 | 1,502 | 30,914 | ||||||||||||||||||||||||||||
Total loans | $ | 168,557 | $ | 203,626 | $ | 546,600 | $ | 24,993 | $ | 86,204 | $ | 43,572 | $ | 15,732 | $ | 3,567 | $ | 1,092,851 | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Pass | $ | 148,771 | $ | 170,553 | $ | 489,978 | $ | 26,287 | $ | 86,957 | $ | 45,634 | $ | 17,809 | $ | 1,862 | $ | 987,851 | |||||||||||||||||||
Special Mention | 13,267 | 20,346 | 8,671 | 1,970 | 2,931 | 1,067 | — | 933 | 49,185 | ||||||||||||||||||||||||||||
Substandard | 13,753 | 2,992 | 8,963 | 2,408 | 3,349 | 2,731 | 966 | 1,754 | 36,916 | ||||||||||||||||||||||||||||
Total loans | $ | 175,791 | $ | 193,891 | $ | 507,612 | $ | 30,665 | $ | 93,237 | $ | 49,432 | $ | 18,775 | $ | 4,549 | $ | 1,073,952 | |||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | ||||||||||||||||||||||||||||||||||||
The tables below present the following information for TDRs modified during the periods presented: number of contracts modified, the recorded investment in the loans prior to modification, and the recorded investment in the loans after the loans were restructured. The tables below exclude fully paid-off or fully charged-off TDR loans. | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Number of Contracts Modified | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment at period end | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the three months ended September 30, 2013: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 3 | $ | 587 | $ | 560 | $ | 558 | ||||||||||||||||||||||||||||||
Commercial real estate, owner occupied | 1 | 2,961 | 2,956 | 2,951 | |||||||||||||||||||||||||||||||||
Commercial real estate, investor | 1 | 539 | 538 | 536 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 2 | 11 | 9 | 9 | |||||||||||||||||||||||||||||||||
Total | 7 | $ | 4,098 | $ | 4,063 | $ | 4,054 | ||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the three months ended June 30, 2013: | |||||||||||||||||||||||||||||||||||||
Construction | 1 | $ | 4,745 | $ | 4,766 | $ | 4,806 | ||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the three months ended September 30, 2012: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | $ | 135 | $ | 134 | $ | 133 | ||||||||||||||||||||||||||||||
Other residential | 1 | 682 | 682 | 680 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 1 | 26 | 26 | 26 | |||||||||||||||||||||||||||||||||
Total | 3 | $ | 843 | $ | 842 | $ | 839 | ||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Number of Contracts Modified | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment at period end | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the nine months ended September 30, 2013: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial 1 | 5 | $ | 1,086 | 1,057 | $ | 991 | |||||||||||||||||||||||||||||||
Commercial real estate, owner occupied | 1 | 2,961 | 2,956 | 2,951 | |||||||||||||||||||||||||||||||||
Commercial real estate, investor | 1 | 539 | 538 | 536 | |||||||||||||||||||||||||||||||||
Construction | 1 | 4,745 | 4,766 | 4,806 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 2 | 11 | 9 | 9 | |||||||||||||||||||||||||||||||||
Total | 10 | $ | 9,342 | 9,326 | $ | 9,293 | |||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the nine months ended September 30, 2012: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 10 | $ | 9,456 | $ | 9,375 | $ | 6,766 | ||||||||||||||||||||||||||||||
Construction | 6 | 11,324 | 11,324 | 6,564 | |||||||||||||||||||||||||||||||||
Home Equity | 2 | 472 | 474 | 471 | |||||||||||||||||||||||||||||||||
Other residential | 1 | 682 | 682 | 680 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 1 | 26 | 26 | 26 | |||||||||||||||||||||||||||||||||
Total | 20 | $ | 21,960 | $ | 21,881 | $ | 14,507 | ||||||||||||||||||||||||||||||
The table below summarizes outstanding TDR loans by loan class as of September 30, 2013 and December 31, 2012. The summary includes those TDRs that are on non-accrual status and those that continue to accrue interest. | |||||||||||||||||||||||||||||||||||||
(in thousands; 2013 unaudited) | As of | ||||||||||||||||||||||||||||||||||||
Recorded investment in Troubled Debt Restructurings 1 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 6,139 | $ | 9,470 | |||||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 4,354 | 1,403 | |||||||||||||||||||||||||||||||||||
Commercial real estate, investor | 536 | — | |||||||||||||||||||||||||||||||||||
Construction | 5,798 | 1,929 | |||||||||||||||||||||||||||||||||||
Home equity | 513 | 908 | |||||||||||||||||||||||||||||||||||
Other residential | 2,085 | 2,831 | |||||||||||||||||||||||||||||||||||
Installment and other consumer | 1,708 | 1,743 | |||||||||||||||||||||||||||||||||||
Total | $ | 21,133 | $ | 18,284 | |||||||||||||||||||||||||||||||||
1 Includes $12.6 million and $10.8 million of TDR loans that were accruing interest as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||||||||||
Schedule of Effects on ALLL for Change in Methodology | ' | ||||||||||||||||||||||||||||||||||||
The following tables represent the effect on the current period provision of the change in methodology by loan class from that used in prior periods: | |||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||
(in thousands; 2013 unaudited) | Calculated Provision Based on New Methodology | Calculated Provision Based on Prior Methodology | Difference In ALLL | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | (965 | ) | $ | (46 | ) | $ | (919 | ) | ||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 427 | 57 | 370 | ||||||||||||||||||||||||||||||||||
Commercial real estate, investor | 1,338 | 73 | 1,265 | ||||||||||||||||||||||||||||||||||
Construction | (210 | ) | (128 | ) | (82 | ) | |||||||||||||||||||||||||||||||
Home equity | (173 | ) | (29 | ) | (144 | ) | |||||||||||||||||||||||||||||||
Other residential | (124 | ) | 2 | (126 | ) | ||||||||||||||||||||||||||||||||
Installment and other consumer | (669 | ) | (450 | ) | (219 | ) | |||||||||||||||||||||||||||||||
Unallocated | (104 | ) | 41 | (145 | ) | ||||||||||||||||||||||||||||||||
Total reversal of provision for loan losses | $ | (480 | ) | $ | (480 | ) | $ | — | |||||||||||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||
(in thousands; 2013 unaudited) | Calculated Provision Based on New Methodology | Calculated Provision Based on Prior Methodology | Difference in ALLL | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | (1,204 | ) | $ | (285 | ) | $ | (919 | ) | ||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 436 | 66 | 370 | ||||||||||||||||||||||||||||||||||
Commercial real estate, investor | 1,308 | 43 | 1,265 | ||||||||||||||||||||||||||||||||||
Construction | 916 | 998 | (82 | ) | |||||||||||||||||||||||||||||||||
Home equity | (159 | ) | (15 | ) | (144 | ) | |||||||||||||||||||||||||||||||
Other residential | (274 | ) | (148 | ) | (126 | ) | |||||||||||||||||||||||||||||||
Installment and other consumer | (506 | ) | (287 | ) | (219 | ) | |||||||||||||||||||||||||||||||
Unallocated | (127 | ) | 18 | (145 | ) | ||||||||||||||||||||||||||||||||
Total provision for loan losses | $ | 390 | $ | 390 | $ | — | |||||||||||||||||||||||||||||||
Impaired Financing Receivables | ' | ||||||||||||||||||||||||||||||||||||
The tables below summarize information on impaired loans and their related allowance. Total impaired loans include non-accrual loans, accruing TDR loans and accreting PCI loans that have experienced post-acquisition declines in cash flows expected to be collected. | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2013 unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Total | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||||||
Recorded investment in impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 1,839 | $ | 1,403 | $ | 3,457 | $ | 2,239 | $ | 356 | $ | 2,303 | $ | 117 | $ | 11,714 | |||||||||||||||||||||
With a specific allowance recorded | 4,300 | 4,094 | 2,911 | 5,798 | 276 | 226 | 1,708 | 19,313 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 6,139 | $ | 5,497 | $ | 6,368 | $ | 8,037 | $ | 632 | $ | 2,529 | $ | 1,825 | $ | 31,027 | |||||||||||||||||||||
Unpaid principal balance of impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 1,839 | $ | 3,060 | $ | 5,449 | $ | 5,146 | $ | 842 | $ | 2,303 | $ | 159 | $ | 18,798 | |||||||||||||||||||||
With a specific allowance recorded | 4,535 | 5,119 | 2,911 | 5,798 | 402 | 226 | 1,708 | 20,699 | |||||||||||||||||||||||||||||
Total unpaid principal balance of impaired loans | $ | 6,374 | $ | 8,179 | 8,360 | $ | 10,944 | $ | 1,244 | $ | 2,529 | $ | 1,867 | $ | 39,497 | ||||||||||||||||||||||
Specific allowance | $ | 859 | $ | 102 | $ | 125 | $ | 1,236 | $ | 74 | $ | 26 | $ | 381 | $ | 2,803 | |||||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended September 30, 2013 | 5,933 | 3,526 | 6,389 | 8,479 | 775 | 2,576 | 1,842 | 29,520 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended September 30, 2013 | 102 | 63 | 7 | 21 | 5 | 22 | 16 | 236 | |||||||||||||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended June 30, 2013 | 7,327 | 2,534 | 6,041 | 8,820 | 1,158 | 2,590 | 1,879 | 30,349 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended June 30, 2013 | 107 | 53 | — | 185 | 12 | 22 | 18 | 397 | |||||||||||||||||||||||||||||
Average recorded investment in impaired loans during the nine months ended September 30, 2013 | 7,584 | 2,861 | 6,178 | 7,138 | 1,022 | 2,744 | 1,881 | 29,408 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the nine months ended September 30, 2013 | 343 | 170 | 7 | 233 | 25 | 67 | 50 | 895 | |||||||||||||||||||||||||||||
(dollars in thousands; 2013 unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Total | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||||
Recorded investment in impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 6,825 | $ | 1,403 | $ | 3,725 | $ | 2,328 | $ | 931 | $ | 2,598 | $ | 978 | $ | 18,788 | |||||||||||||||||||||
With a specific allowance recorded | 2,645 | 471 | 4,513 | 1,840 | 261 | 715 | 1,070 | 11,515 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 9,470 | $ | 1,874 | 8,238 | $ | 4,168 | $ | 1,192 | $ | 3,313 | $ | 2,048 | $ | 30,303 | ||||||||||||||||||||||
Unpaid principal balance of impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 7,633 | $ | 3,060 | $ | 5,717 | $ | 2,514 | $ | 1,417 | $ | 2,598 | $ | 1,020 | $ | 23,959 | |||||||||||||||||||||
With a specific allowance recorded | 2,930 | 966 | 4,887 | 4,519 | 324 | 715 | 1,070 | 15,411 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 10,563 | $ | 4,026 | 10,604 | $ | 7,033 | $ | 1,741 | $ | 3,313 | $ | 2,090 | $ | 39,370 | ||||||||||||||||||||||
Specific allowance | $ | 1,131 | $ | 26 | $ | 374 | $ | 118 | $ | 154 | $ | 120 | $ | 431 | $ | 2,354 | |||||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended September 30, 2012 | 9,882 | 1,865 | 6,418 | 13,442 | 1,499 | 2,641 | 2,230 | 37,977 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended September 30, 2012 | 351 | 28 | 30 | 141 | 10 | 13 | 15 | 588 | |||||||||||||||||||||||||||||
Average recorded investment in impaired loans during the nine months ended September 30, 2012 | 12,116 | 1,705 | 5,472 | 14,097 | 1,255 | 2,396 | 2,153 | 39,194 | |||||||||||||||||||||||||||||
Interest income recognized on impaired loans during the nine months ended September 30, 2012 | 672 | 97 | 95 | 462 | 22 | 88 | 51 | 1,487 | |||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | ||||||||||||||||||||||||||||||||||||
The following table discloses loans by major portfolio category and activity in the ALLL, as well as the related ALLL disaggregated by impairment evaluation method: | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,799 | $ | 1,406 | $ | 4,368 | $ | 1,721 | $ | 1,153 | $ | 401 | $ | 1,313 | $ | 196 | $ | 14,357 | |||||||||||||||||||
Provision (reversal) | (965 | ) | 427 | 1,338 | (210 | ) | (173 | ) | (124 | ) | (669 | ) | (104 | ) | (480 | ) | |||||||||||||||||||||
Charge-offs | (129 | ) | — | — | (24 | ) | — | — | (1 | ) | — | (154 | ) | ||||||||||||||||||||||||
Recoveries | 75 | — | 9 | — | — | — | 1 | — | 85 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,780 | $ | 1,833 | $ | 5,715 | $ | 1,487 | $ | 980 | $ | 277 | $ | 644 | $ | 92 | $ | 13,808 | |||||||||||||||||||
For the three months ended June 30, 2013 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,032 | $ | 1,348 | $ | 4,020 | $ | 650 | $ | 1,216 | $ | 431 | $ | 1,366 | $ | 371 | $ | 13,434 | |||||||||||||||||||
Provision (reversal) | (189 | ) | (26 | ) | 345 | 1,084 | 63 | (30 | ) | 28 | (175 | ) | 1,100 | ||||||||||||||||||||||||
Charge-offs | (386 | ) | — | — | (13 | ) | (126 | ) | — | (85 | ) | — | (610 | ) | |||||||||||||||||||||||
Recoveries | 342 | 84 | 3 | — | — | — | 4 | — | 433 | ||||||||||||||||||||||||||||
Ending balance | $ | 3,799 | $ | 1,406 | $ | 4,368 | $ | 1,721 | $ | 1,153 | $ | 401 | $ | 1,313 | $ | 196 | $ | 14,357 | |||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,100 | $ | 1,313 | $ | 4,372 | $ | 611 | $ | 1,264 | $ | 551 | $ | 1,231 | $ | 219 | $ | 13,661 | |||||||||||||||||||
Provision (reversal) | (1,204 | ) | 436 | 1,308 | 916 | (159 | ) | (274 | ) | (506 | ) | (127 | ) | 390 | |||||||||||||||||||||||
Charge-offs | (586 | ) | — | — | (41 | ) | (133 | ) | — | (87 | ) | — | (847 | ) | |||||||||||||||||||||||
Recoveries | 470 | 84 | 35 | 1 | 8 | — | 6 | — | 604 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,780 | $ | 1,833 | $ | 5,715 | $ | 1,487 | $ | 980 | $ | 277 | $ | 644 | $ | 92 | $ | 13,808 | |||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||
As of September 30, 2013: | |||||||||||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 1,921 | $ | 1,732 | $ | 5,590 | $ | 251 | $ | 906 | $ | 250 | $ | 263 | $ | 92 | $ | 11,005 | |||||||||||||||||||
Ending ALLL related to loans individually evaluated for impairment | $ | 676 | $ | 43 | $ | 125 | $ | 1,236 | $ | 74 | $ | 27 | $ | 381 | $ | — | $ | 2,562 | |||||||||||||||||||
Ending ALLL related to purchased credit-impaired loans | $ | 183 | $ | 58 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 241 | |||||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 162,701 | $ | 200,676 | $ | 540,232 | $ | 16,956 | $ | 85,572 | $ | 41,044 | $ | 13,906 | $ | — | $ | 1,061,087 | |||||||||||||||||||
Individually evaluated for impairment1 | 5,855 | 2,951 | 6,368 | 8,037 | 632 | 2,528 | 1,826 | — | 28,197 | ||||||||||||||||||||||||||||
Purchased credit-impaired | 284 | 2,546 | 737 | — | — | — | — | — | 3,567 | ||||||||||||||||||||||||||||
Total | $ | 168,840 | $ | 206,173 | $ | 547,337 | $ | 24,993 | $ | 86,204 | $ | 43,572 | $ | 15,732 | $ | — | $ | 1,092,851 | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 1.65 | % | 0.89 | % | 1.04 | % | 5.95 | % | 1.14 | % | 0.64 | % | 4.09 | % | NM | 1.26 | % | ||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 226 | % | 131 | % | 98 | % | 21 | % | 273 | % | 25 | % | 207 | % | NM | 80 | % | ||||||||||||||||||||
1 Total excludes $2.8 million of PCI loans that have experienced post-acquisition declines in cash flows expected to be collected.These loans are included in the "purchased credit-impaired" amount in the next line below. | |||||||||||||||||||||||||||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 2,969 | $ | 1,287 | $ | 3,998 | $ | 493 | $ | 1,110 | $ | 431 | $ | 800 | $ | 219 | $ | 11,307 | |||||||||||||||||||
Ending ALLL related to loans individually evaluated for impairment | $ | 1,090 | $ | — | $ | 178 | $ | 118 | $ | 154 | $ | 120 | $ | 431 | $ | — | $ | 2,091 | |||||||||||||||||||
Ending ALLL related to purchased credit-impaired loans | $ | 41 | $ | 26 | $ | 196 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 263 | |||||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 166,860 | $ | 193,891 | $ | 500,768 | $ | 26,497 | $ | 92,045 | $ | 46,119 | $ | 16,727 | $ | — | $ | 1,042,907 | |||||||||||||||||||
Individually evaluated for impairment1 | 8,931 | — | 6,844 | 4,168 | 1,192 | 3,313 | 2,048 | — | 26,496 | ||||||||||||||||||||||||||||
Purchased credit-impaired | 640 | 2,515 | 1,394 | — | — | — | — | — | 4,549 | ||||||||||||||||||||||||||||
Total | $ | 176,431 | $ | 196,406 | $ | 509,006 | $ | 30,665 | $ | 93,237 | $ | 49,432 | $ | 18,775 | $ | — | $ | 1,073,952 | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 2.32 | % | 0.67 | % | 0.86 | % | 1.99 | % | 1.36 | % | 1.11 | % | 6.56 | % | NM | 1.27 | % | ||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 84 | % | 94 | % | 64 | % | 27 | % | 232 | % | 46 | % | 231 | % | NM | 77 | % | ||||||||||||||||||||
1 Total excludes $3.8 million PCI loans that have experienced credit deterioration post-acquisition, which are included in the "purchased credit-impaired" amount in the next line below. | |||||||||||||||||||||||||||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,886 | $ | 1,148 | $ | 3,666 | $ | 985 | $ | 1,580 | $ | 562 | $ | 1,321 | $ | 287 | $ | 13,435 | |||||||||||||||||||
Provision (reversal) | 259 | 119 | 2,160 | (375 | ) | 2 | (39 | ) | 35 | (61 | ) | 2,100 | |||||||||||||||||||||||||
Charge-offs | (15 | ) | — | (2,236 | ) | (15 | ) | (149 | ) | — | (60 | ) | — | (2,475 | ) | ||||||||||||||||||||||
Recoveries | 78 | — | — | — | — | — | 1 | — | 79 | ||||||||||||||||||||||||||||
Ending balance | $ | 4,208 | $ | 1,267 | $ | 3,590 | $ | 595 | $ | 1,433 | $ | 523 | $ | 1,297 | $ | 226 | $ | 13,139 | |||||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,334 | $ | 1,305 | $ | 3,710 | $ | 1,505 | $ | 1,444 | $ | 940 | $ | 1,182 | $ | 219 | $ | 14,639 | |||||||||||||||||||
Provision (reversal) | 291 | 138 | 2,294 | (723 | ) | 236 | (221 | ) | 178 | 7 | 2,200 | ||||||||||||||||||||||||||
Charge-offs | (865 | ) | (181 | ) | (2,414 | ) | (187 | ) | (259 | ) | (196 | ) | (65 | ) | — | (4,167 | ) | ||||||||||||||||||||
Recoveries | 448 | 5 | — | — | 12 | — | 2 | — | 467 | ||||||||||||||||||||||||||||
Ending balance | $ | 4,208 | $ | 1,267 | $ | 3,590 | $ | 595 | $ | 1,433 | $ | 523 | $ | 1,297 | $ | 226 | $ | 13,139 | |||||||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | ' | ||||||||||||||||||||||||||||||||||||
The following table reflects the outstanding balance and related carrying value of PCI loans as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||||
PCI Loans | Unpaid principal balance | Carrying value | Unpaid principal balance | Carrying value | |||||||||||||||||||||||||||||||||
(dollars in thousands; 2013 unaudited) | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 519 | $ | 284 | $ | 2,163 | $ | 640 | |||||||||||||||||||||||||||||
Commercial real estate | 5,420 | 3,283 | 6,370 | 3,909 | |||||||||||||||||||||||||||||||||
Total purchased credit-impaired loans | $ | 5,939 | $ | 3,567 | $ | 8,533 | $ | 4,549 | |||||||||||||||||||||||||||||
Accretable Yield Activity | ' | ||||||||||||||||||||||||||||||||||||
The activities in the accretable yield, or income expected to be earned, for PCI loans were as follows: | |||||||||||||||||||||||||||||||||||||
Accretable Yield | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
(dollars in thousands, unaudited) | September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 3,277 | $ | 3,583 | $ | 5,386 | $ | 3,960 | $ | 5,405 | |||||||||||||||||||||||||||
Additions | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Removals 1 | — | (195 | ) | — | (791 | ) | (225 | ) | |||||||||||||||||||||||||||||
Accretion | (153 | ) | (156 | ) | (231 | ) | (545 | ) | (1,219 | ) | |||||||||||||||||||||||||||
Reclassifications from nonaccretable difference 2 | — | 45 | 20 | 500 | 1,214 | ||||||||||||||||||||||||||||||||
Balance at end of period | $ | 3,124 | $ | 3,277 | $ | 5,175 | $ | 3,124 | $ | 5,175 | |||||||||||||||||||||||||||
1 Represents the accretable difference that is relieved when a loan exits the PCI population due to payoff, full charge-off, or transfer to repossessed assets, etc. | |||||||||||||||||||||||||||||||||||||
2 Primarily relates to improvements in expected credit performance and changes in expected timing of cash flows. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Dividends Declared | ' | ||||||||||||||||
Presented below is a summary of cash dividends paid to common shareholders, recorded as a reduction of retained earnings. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
(in thousands except per share data, unaudited) | September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||
Cash dividends to common stockholders | $ | 982 | $ | 979 | $ | 965 | $ | 2,932 | $ | 2,784 | |||||||
Cash dividends per common share | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.54 | $ | 0.52 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||||||||||||||||
At September 30, 2013, the approximate minimum future commitments payable under non-cancelable contracts for leased premises are as follows: | ||||||||||||||||||||||
(in thousands) | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
Operating leases | $ | 718 | $ | 2,806 | $ | 2,881 | $ | 2,964 | $ | 2,986 | $ | 12,109 | $ | 24,464 | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||||||
(in thousands; 2013 unaudited) | September 30, 2013 | December 31, 2012 | September 30, 2013 | 31-Dec-12 | |||||||||||||||
Fair value hedges: | |||||||||||||||||||
Interest rate contracts notional amount | $ | 10,658 | $ | 4,932 | $ | 30,773 | $ | 38,156 | |||||||||||
Interest rate contracts fair value1 | $ | 646 | $ | 1 | $ | 3,085 | $ | 5,240 | |||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||||||
Three months ended | |||||||||||||||||||
(in thousands; unaudited) | September 30, 2013 | June 30, 2013 | September 30, 2012 | ||||||||||||||||
Increase (decrease) in value of designated interest rate swaps recognized in interest income | $ | 196 | $ | 1,956 | $ | (217 | ) | ||||||||||||
Payment on interest rate swaps recorded in interest income | (358 | ) | (359 | ) | (339 | ) | |||||||||||||
(Decrease) increase in value of hedged loans recognized in interest income | (245 | ) | (2,095 | ) | 402 | ||||||||||||||
Decrease in value of yield maintenance agreement recognized against interest income | (18 | ) | (18 | ) | (19 | ) | |||||||||||||
Net loss on derivatives recognized against interest income 2 | $ | (425 | ) | $ | (516 | ) | $ | (173 | ) | ||||||||||
Nine months ended | |||||||||||||||||||
(in thousands; unaudited) | September 30, 2013 | September 30, 2012 | |||||||||||||||||
Increase (decrease) in value of designated interest rate swaps recognized in interest income | $ | 2,800 | $ | (574 | ) | ||||||||||||||
Payment on interest rate swaps recorded in interest income | (1,075 | ) | (973 | ) | |||||||||||||||
(Decrease) increase in value of hedged loans recognized in interest income | (3,033 | ) | 762 | ||||||||||||||||
(Decrease) increase in value of yield maintenance agreement recognized against interest income | (54 | ) | 185 | ||||||||||||||||
Net loss on derivatives recognized against interest income 2 | $ | (1,362 | ) | $ | (600 | ) | |||||||||||||
1 See Note 4 for valuation methodology. | |||||||||||||||||||
2 Includes hedge ineffectiveness of $(67) thousand, $(157) thousand and $166 thousand for the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012, respectively. Ineffectiveness of $(287) thousand and $373 thousand was recorded in interest income during the nine months ended September 30, 2013 and September 30, 2012, respectively. Changes in value of swaps were included in the assessment of hedge effectiveness. | |||||||||||||||||||
Offsetting Assets | ' | ||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||
(in thousands; 2013 unaudited) | Gross Amounts Not Offset in the Statements of Condition | ||||||||||||||||||
Gross Amounts | Net Amounts | ||||||||||||||||||
Gross Amounts | Offset in the | of Assets Presented | |||||||||||||||||
of Recognized | Statements of | in the Statements | Financial | Cash Collateral | |||||||||||||||
Assets1 | Condition | of Condition1 | Instruments | Received | Net Amount | ||||||||||||||
As of September 30, 2013 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 646 | $ | — | $ | 646 | $ | (646 | ) | $ | — | $ | — | ||||||
Counterparty B | — | — | — | — | — | — | |||||||||||||
Total | $ | 646 | $ | — | $ | 646 | $ | (646 | ) | $ | — | $ | — | ||||||
As of December 31, 2012 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 1 | $ | — | $ | 1 | $ | (1 | ) | $ | — | $ | — | ||||||
Counterparty B | — | — | — | — | — | — | |||||||||||||
Total | $ | 1 | $ | — | $ | 1 | $ | (1 | ) | $ | — | $ | — | ||||||
Offsetting Liabilities | ' | ||||||||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||
(in thousands; 2013 unaudited) | Gross Amounts Not Offset in the Statements of Condition | ||||||||||||||||||
Gross Amounts | Net Amounts of | ||||||||||||||||||
Gross Amounts | Offset in the | Liabilities Presented | |||||||||||||||||
of Recognized | Statements of | in the Statements of | Financial | Cash Collateral | |||||||||||||||
Liabilities2 | Condition | Condition2 | Instruments | Pledged | Net Amount | ||||||||||||||
As of September 30, 2013 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 1,180 | $ | — | $ | 1,180 | $ | (646 | ) | — | $ | 534 | |||||||
Counterparty B | 1,905 | — | 1,905 | — | (1,905 | ) | — | ||||||||||||
Total | $ | 3,085 | $ | — | $ | 3,085 | $ | (646 | ) | $ | (1,905 | ) | $ | 534 | |||||
As of December 31, 2012 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 2,616 | $ | — | $ | 2,616 | $ | (1 | ) | $ | (1,860 | ) | $ | 755 | |||||
Counterparty B | 2,624 | — | 2,624 | — | (2,624 | ) | — | ||||||||||||
Total | $ | 5,240 | $ | — | $ | 5,240 | $ | (1 | ) | $ | (4,484 | ) | $ | 755 | |||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' | ' |
Weighted average basic shares outstanding | 5,433 | 5,419 | 5,344 | 5,414 | 5,335 | ' |
Add: Potential common shares related to stock options | 46 | 39 | 55 | 43 | 48 | ' |
Potential common shares related to unvested restricted stock | 4 | 2 | 9 | 4 | 6 | ' |
Potential common shares related to warrants | 55 | 49 | 47 | 50 | 44 | ' |
Weighted average diluted shares outstanding | 5,538 | 5,509 | 5,455 | 5,511 | 5,433 | ' |
Net income | $4,004 | $3,055 | $3,224 | $11,925 | $13,115 | $17,817 |
Basic EPS | $0.74 | $0.56 | $0.60 | $2.20 | $2.46 | ' |
Diluted EPS | $0.72 | $0.55 | $0.59 | $2.16 | $2.41 | ' |
Weighted average anti-dilutive shares not included in the calculation of diluted EPS | 51 | 60 | 41 | 48 | 33 | ' |
Acquisition_Details
Acquisition (Details) (NorCal Community Bancorp, Subsequent Event, USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | branch |
NorCal Community Bancorp | Subsequent Event | ' |
Business Acquisition [Line Items] | ' |
Number of branches acquired | 4 |
Assets of bank acquired | $271.50 |
Deposits of bank acquired | 237.2 |
Loans of bank acquired | $177.30 |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities - Recorded on a Recurring Basis (Details) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | $119,340 | $153,962 | ||
Derivative financial assets (interest rate contracts) | 646 | [1] | 1 | [1] |
Derivative financial liabilities (interest rate contracts) | 3,085 | [2] | 5,240 | [2] |
Discount rate for selling costs applied to all properties | 6.00% | ' | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Number of securities considered in level | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Number of securities considered in level | 0 | 0 | ||
Assets and liabilities at fair value measured on a recurring basis | Carrying Value | Interest rate contract | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial assets (interest rate contracts) | 646 | 1 | ||
Derivative financial liabilities (interest rate contracts) | 3,085 | 5,240 | ||
Assets and liabilities at fair value measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contract | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial assets (interest rate contracts) | 0 | 0 | ||
Derivative financial liabilities (interest rate contracts) | 0 | 0 | ||
Assets and liabilities at fair value measured on a recurring basis | Fair Value Hierarchy, Level 2 | Interest rate contract | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial assets (interest rate contracts) | 646 | 1 | ||
Derivative financial liabilities (interest rate contracts) | 3,085 | 5,240 | ||
Assets and liabilities at fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Interest rate contract | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial assets (interest rate contracts) | 0 | 0 | ||
Derivative financial liabilities (interest rate contracts) | 0 | 0 | ||
MBS pass-through securities and collaterized mortgage obligations issued by U.S. government-sponsored agencies | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 46,763 | 53,713 | ||
MBS pass-through securities and collaterized mortgage obligations issued by U.S. government-sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 85,108 | 111,797 | ||
MBS pass-through securities and collaterized mortgage obligations issued by U.S. government-sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 0 | 0 | ||
MBS pass-through securities and collaterized mortgage obligations issued by U.S. government-sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Fair Value Hierarchy, Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 85,108 | 111,797 | ||
MBS pass-through securities and collaterized mortgage obligations issued by U.S. government-sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 0 | 0 | ||
Debentures of government sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 18,954 | 20,589 | ||
Debentures of government sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 0 | 0 | ||
Debentures of government sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Fair Value Hierarchy, Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 18,954 | 20,589 | ||
Debentures of government sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 0 | 0 | ||
Privately-issued CMOs | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 15,278 | 21,576 | ||
Privately-issued CMOs | Assets and liabilities at fair value measured on a recurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 15,278 | 21,576 | ||
Privately-issued CMOs | Assets and liabilities at fair value measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 0 | 0 | ||
Privately-issued CMOs | Assets and liabilities at fair value measured on a recurring basis | Fair Value Hierarchy, Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | 15,278 | 21,576 | ||
Privately-issued CMOs | Assets and liabilities at fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available-for-sale | $0 | $0 | ||
[1] | Amounts exclude accrued interest totaling $7 thousand and $1 thousand at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Amounts exclude accrued interest totaling $62 thousand and $74 thousand at September 30, 2013 and December 31, 2012, respectively. |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities - Recorded on Nonrecurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | $31,027 | $30,303 | ||
Specific valuation allowance for impaired loans | 2,803 | 2,354 | ||
Impaired loans | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Specific valuation allowance for impaired loans | 1,500 | 729 | ||
Financial instruments at fair value measured on a nonrecurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 6,945 | 5,574 | ||
Financial instruments at fair value measured on a nonrecurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Financial instruments at fair value measured on a nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Financial instruments at fair value measured on a nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 6,945 | [1] | 5,574 | [1] |
Commercial real estate, investor | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 6,368 | 8,238 | ||
Specific valuation allowance for impaired loans | 125 | 374 | ||
Commercial real estate, investor | Financial instruments at fair value measured on a nonrecurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 2,786 | 2,941 | ||
Commercial real estate, investor | Financial instruments at fair value measured on a nonrecurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Commercial real estate, investor | Financial instruments at fair value measured on a nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Commercial real estate, investor | Financial instruments at fair value measured on a nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 2,786 | [1] | 2,941 | [1] |
Construction | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 8,037 | 4,168 | ||
Specific valuation allowance for impaired loans | 1,236 | 118 | ||
Construction | Financial instruments at fair value measured on a nonrecurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 3,971 | 1,722 | ||
Construction | Financial instruments at fair value measured on a nonrecurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Construction | Financial instruments at fair value measured on a nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Construction | Financial instruments at fair value measured on a nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 3,971 | [1] | 1,722 | [1] |
Home equity | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 632 | 1,192 | ||
Specific valuation allowance for impaired loans | 74 | 154 | ||
Home equity | Financial instruments at fair value measured on a nonrecurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 45 | 107 | ||
Home equity | Financial instruments at fair value measured on a nonrecurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Home equity | Financial instruments at fair value measured on a nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Home equity | Financial instruments at fair value measured on a nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 45 | [1] | 107 | [1] |
Other residential | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 2,529 | 3,313 | ||
Specific valuation allowance for impaired loans | 26 | 120 | ||
Other residential | Financial instruments at fair value measured on a nonrecurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | ' | 594 | ||
Other residential | Financial instruments at fair value measured on a nonrecurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | ' | 0 | ||
Other residential | Financial instruments at fair value measured on a nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | ' | 0 | ||
Other residential | Financial instruments at fair value measured on a nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | ' | 594 | [1] | |
Installment and other consumer | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 1,825 | 2,048 | ||
Specific valuation allowance for impaired loans | 381 | 431 | ||
Installment and other consumer | Financial instruments at fair value measured on a nonrecurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 143 | 159 | ||
Installment and other consumer | Financial instruments at fair value measured on a nonrecurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Installment and other consumer | Financial instruments at fair value measured on a nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 0 | 0 | ||
Installment and other consumer | Financial instruments at fair value measured on a nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 143 | [1] | 159 | [1] |
Commercial and industrial | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 6,139 | 9,470 | ||
Specific valuation allowance for impaired loans | 859 | 1,131 | ||
Commercial and industrial | Financial instruments at fair value measured on a nonrecurring basis | Carrying Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | ' | 51 | ||
Commercial and industrial | Financial instruments at fair value measured on a nonrecurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | ' | 0 | ||
Commercial and industrial | Financial instruments at fair value measured on a nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | ' | 0 | ||
Commercial and industrial | Financial instruments at fair value measured on a nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | ' | $51 | [1] | |
[1] | Represents collateral-dependent loan principal balances that had been generally written down to the values of the underlying collateral, net of specific valuation allowances of $1.5 million and $729 thousand at September 30, 2013 and December 31, 2012, respectively. The carrying value of loans fully charged-off, which includes unsecured lines of credit, overdrafts and all other loans, is zero. |
Fair_Value_of_Assets_and_Liabi4
Fair Value of Assets and Liabilities - Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Investment securities held to maturity | $131,567 | $142,231 |
Fair Value Hierarchy, Level 1 | Carrying Value | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents | 99,358 | 28,349 |
Fair Value Hierarchy, Level 1 | Fair Value | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Cash and cash equivalents | 99,358 | 28,349 |
Fair Value Hierarchy, Level 2 | Carrying Value | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Investment securities held to maturity | 130,085 | 139,452 |
Interest receivable | 4,665 | 5,073 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Deposits | 1,292,476 | 1,253,289 |
Federal Home Loan Bank borrowings | 15,000 | 15,000 |
Interest payable | 193 | 225 |
Fair Value Hierarchy, Level 2 | Fair Value | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Investment securities held to maturity | 131,567 | 142,231 |
Interest receivable | 4,665 | 5,073 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Deposits | 1,293,741 | 1,254,713 |
Federal Home Loan Bank borrowings | 15,715 | 15,989 |
Interest payable | 193 | 225 |
Fair Value Hierarchy, Level 3 | Carrying Value | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Loans, net | 1,079,043 | 1,060,291 |
Fair Value Hierarchy, Level 3 | Fair Value | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Loans, net | $1,097,619 | $1,111,355 |
Investment_Securities_Amortize
Investment Securities - Amortized Cost and Fair Value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Held to maturity, Amortized Cost | $130,085 | $139,452 |
Held to maturity, Fair Value | 131,567 | 142,231 |
Held-to-maturity, Gross Unrealized Gains | 2,317 | 3,313 |
Held-to-maturity, Gross Unrealized Losses | -835 | -534 |
Available for sale, Amortized Cost | 118,353 | 150,420 |
Available for sale, Fair Value | 119,340 | 153,962 |
Available-for-sale Securities, Gross Unrealized Gains | 2,160 | 3,776 |
Available-for-sale, Gross Unrealized Losses | -1,173 | -234 |
Total investment securities, Amortized Cost | 248,438 | 289,872 |
Total investment securities, Fair Value | 250,907 | 296,193 |
Total investment securities, Gross Unrealized Gains | 4,477 | 7,089 |
Total investment securities, Gross Unrealized (Losses) | -2,008 | -768 |
MBS pass-through securities issued by FNMA and FHLMC | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 46,553 | 52,042 |
Available for sale, Fair Value | 46,763 | 53,713 |
Available-for-sale Securities, Gross Unrealized Gains | 725 | 1,711 |
Available-for-sale, Gross Unrealized Losses | -515 | -40 |
CMOs issued by FNMA | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 1,342 | 4,447 |
Available for sale, Fair Value | 1,416 | 4,550 |
Available-for-sale Securities, Gross Unrealized Gains | 74 | 105 |
Available-for-sale, Gross Unrealized Losses | 0 | -2 |
CMOs issued by FHLMC | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 8,940 | 13,527 |
Available for sale, Fair Value | 9,084 | 13,778 |
Available-for-sale Securities, Gross Unrealized Gains | 166 | 251 |
Available-for-sale, Gross Unrealized Losses | -22 | 0 |
CMOs issued by GNMA | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 27,133 | 38,871 |
Available for sale, Fair Value | 27,845 | 39,756 |
Available-for-sale Securities, Gross Unrealized Gains | 745 | 886 |
Available-for-sale, Gross Unrealized Losses | -33 | -1 |
Debentures of government-sponsored agencies | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 19,365 | 20,462 |
Available for sale, Fair Value | 18,954 | 20,589 |
Available-for-sale Securities, Gross Unrealized Gains | 130 | 228 |
Available-for-sale, Gross Unrealized Losses | -541 | -101 |
Privately-issued CMOs | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available for sale, Amortized Cost | 15,020 | 21,071 |
Available for sale, Fair Value | 15,278 | 21,576 |
Available-for-sale Securities, Gross Unrealized Gains | 320 | 595 |
Available-for-sale, Gross Unrealized Losses | -62 | -90 |
Obligations of state and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Held to maturity, Amortized Cost | 87,867 | 96,922 |
Held to maturity, Fair Value | 89,057 | 99,350 |
Held-to-maturity, Gross Unrealized Gains | 1,935 | 2,855 |
Held-to-maturity, Gross Unrealized Losses | -745 | -427 |
Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Held to maturity, Amortized Cost | 42,218 | 42,530 |
Held to maturity, Fair Value | 42,510 | 42,881 |
Held-to-maturity, Gross Unrealized Gains | 382 | 458 |
Held-to-maturity, Gross Unrealized Losses | ($90) | ($107) |
Investment_Securities_Maturiti
Investment Securities - Maturities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Held to Maturity, Amortized Cost, Within one year | $8,331 | ' |
Held to Maturity, Amortized Cost, After one but within five years | 92,671 | ' |
Held to Maturity, Amortized Cost, After five years through ten years | 26,094 | ' |
Held to Maturity, Amortized Cost, After ten years | 2,989 | ' |
Held to Maturity, Amortized Cost, Total | 130,085 | 139,452 |
Available for Sale Securities, Amortized Cost, Within one year | 0 | ' |
Available for Sale, Amortized Cost, After one but within five years | 27,536 | ' |
Available for Sale, Amortized Cost, After five years through ten years | 18,132 | ' |
Available for Sale, Amortized Cost, After ten years | 72,685 | ' |
Available for Sale, Amortized Cost, Total | 118,353 | ' |
Held to Maturity, Fair Value, Within one year | 8,340 | ' |
Held to Maturity, Fair Value, After one but within five years | 93,521 | ' |
Held to Maturity, Fair Value, After five years through ten years | 26,779 | ' |
Held to Maturity, Fair Value, After ten years | 2,927 | ' |
Held to maturity, Fair Value | 131,567 | 142,231 |
Available for Sale, Fair Value, Within one year | 0 | ' |
Available for Sale, Fair Value, After one but within five years | 27,791 | ' |
Available for Sale, Fair Value, After five years through ten years | 17,528 | ' |
Available for Sale, Fair Value, After ten years | 74,021 | ' |
Available for Sale, Fair Value, Total | $119,340 | ' |
Investment_Securities_Securiti
Investment Securities - Securities Sold and Pledged as Collateral (Details) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2013 |
security | security | State of California | State of California | Public Deposits | Public Deposits | Trust Deposits | Trust Deposits | Internal checking account | Internal checking account | Subsequent Event | ||
security | ||||||||||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of securities sold during period | 4 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Proceeds from sale of securities available-for-sale | $2,220 | $2,186 | $2,200 | ' | ' | ' | ' | ' | ' | ' | ' | $5,200 |
Loss on sale of securities sold | 35 | ' | 34 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain on securities sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 |
Available-for-sale securities pledged as collateral | ' | ' | ' | $42,200 | $47,700 | $41,500 | $47,000 | $729 | $719 | $1,100 | $1,100 | ' |
Investment_Securities_Investme
Investment Securities - Investment Securities in Unrealized Loss Positions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | security | security |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Number of investment securities other-than-temporarily impaired | 0 | ' |
Number of investment securities in unrealized loss position | 52 | 55 |
Held-to-maturity, less than 12 continuous months, Fair value | $34,677 | $48,845 |
Held-to-maturity, greater than 12 continuous months, Fair value | 3,985 | 0 |
Held-to-maturity, Total Securities in a loss position, Fair value | 38,662 | 48,845 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | -800 | -534 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | -35 | 0 |
Held-to-maturity, Total Securities in a loss position, Gross Unrealized Losses | -835 | -534 |
Available-for-sale, less than 12 continuous months, Fair value | 43,592 | 22,417 |
Available-for-sale, greater than 12 continuous months, Fair value | 167 | 203 |
Available-for-sale, Total Securities in a loss position, Fair Value | 43,759 | 22,620 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -1,172 | -233 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | -1 | -1 |
Available-for-sale, Total Securities in a loss position, Gross Unrealized Losses | -1,173 | -234 |
Marketable securities, less than 12 continuous months, Fair value | 78,269 | 71,262 |
Marketable securities, greater than 12 continuous months, Fair value | 4,152 | 203 |
Marketable securities, Total Securities in a loss position, Fair value | 82,421 | 71,465 |
Marketable securities, less than 12 continuous months, Unrealized loss | -1,972 | -767 |
Marketable securities, greater than 12 continuous months, Unrealized loss | -36 | -1 |
Marketable securities, Total Securities in a loss position, Unrealized loss | -2,008 | -768 |
MBS pass-through securities issued by FNMA and FHLMC | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available-for-sale, less than 12 continuous months, Fair value | 16,612 | 3,569 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | 16,612 | 3,569 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -515 | -40 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Gross Unrealized Losses | -515 | -40 |
CMOs issued by FHLMC | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available-for-sale, less than 12 continuous months, Fair value | 2,716 | ' |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | ' |
Available-for-sale, Total Securities in a loss position, Fair Value | 2,716 | ' |
Available-for-sale, less than 12 continuous months, Unrealized loss | -22 | ' |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | ' |
Available-for-sale, Total Securities in a loss position, Gross Unrealized Losses | -22 | 0 |
CMOs issued by FNMA | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available-for-sale, less than 12 continuous months, Fair value | ' | 3,185 |
Available-for-sale, greater than 12 continuous months, Fair value | ' | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | ' | 3,185 |
Available-for-sale, less than 12 continuous months, Unrealized loss | ' | -2 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | ' | 0 |
Available-for-sale, Total Securities in a loss position, Gross Unrealized Losses | 0 | -2 |
CMOs issued by GNMA | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available-for-sale, less than 12 continuous months, Fair value | 4,190 | 1,550 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | 4,190 | 1,550 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -33 | -1 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Gross Unrealized Losses | -33 | -1 |
Debentures of government-sponsored agencies | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available-for-sale, less than 12 continuous months, Fair value | 14,459 | 9,899 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | 14,459 | 9,899 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -541 | -101 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Gross Unrealized Losses | -541 | -101 |
Privately-issued CMOs | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available-for-sale, less than 12 continuous months, Fair value | 5,615 | 4,214 |
Available-for-sale, greater than 12 continuous months, Fair value | 167 | 203 |
Available-for-sale, Total Securities in a loss position, Fair Value | 5,782 | 4,417 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -61 | -89 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | -1 | -1 |
Available-for-sale, Total Securities in a loss position, Gross Unrealized Losses | -62 | -90 |
Obligations of state and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity, less than 12 continuous months, Fair value | 24,675 | 33,196 |
Held-to-maturity, greater than 12 continuous months, Fair value | 2,551 | 0 |
Held-to-maturity, Total Securities in a loss position, Fair value | 27,226 | 33,196 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | -711 | -427 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | -34 | 0 |
Held-to-maturity, Total Securities in a loss position, Gross Unrealized Losses | -745 | -427 |
Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity, less than 12 continuous months, Fair value | 10,002 | 15,649 |
Held-to-maturity, greater than 12 continuous months, Fair value | 1,434 | 0 |
Held-to-maturity, Total Securities in a loss position, Fair value | 11,436 | 15,649 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | -89 | -107 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | -1 | 0 |
Held-to-maturity, Total Securities in a loss position, Gross Unrealized Losses | ($90) | ($107) |
Less than Twelve Months [Member] | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Number of investment securities in unrealized loss position less than one year | 48 | ' |
More than twelve continuous months | Privately-issued CMOs | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Number of available-for-sale investment securities in loss position | 1 | ' |
More than twelve continuous months | Obligations of state and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Number of held-to-maturity investment securities in loss position | 2 | ' |
More than twelve continuous months | Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Number of held-to-maturity investment securities in loss position | 1 | ' |
Investment_Securities_Securiti1
Investment Securities - Securities in Carried at Cost (Details) (USD $) | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Visa Inc. Class B common stock | Visa Inc. Class B common stock | Other assets | Other assets | ||
Schedule of Cost-method Investments [Line Items] | ' | ' | ' | ' | ' |
Federal Home Loan Bank stock, par value | $100 | ' | ' | ' | ' |
Federal Home Loan Bank stock | ' | ' | ' | $6,500,000 | $6,000,000 |
Federal Home Loan Bank, dividend rate percentage | 5.65% | ' | ' | ' | ' |
Number of shares of securities carried at cost | ' | 16,939 | ' | ' | ' |
Carrying value of securities carried at cost | 0 | ' | ' | ' | ' |
Fair value of Class B common stock | ' | $1,400,000 | $1,100,000 | ' | ' |
Conversion ratio for common stock | 0.4206 | ' | ' | ' | ' |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses - Loans Outstanding and Aging Analysis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
loans | loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | $1,971,000 | $588,000 | ||
60 to 89 Days Past Due | 242,000 | 0 | ||
Greater than 90 days past due (non-accrual) | 17,296,000 | [1] | 17,652,000 | [1] |
Total past due | 19,509,000 | 18,240,000 | ||
Current | 1,073,342,000 | 1,055,712,000 | ||
Total loans | 1,092,851,000 | [2] | 1,073,952,000 | [2] |
Non-accrual loans to total loans | 1.60% | 1.60% | ||
Purchased Credit Impaired (PCI) loans no longer accreting interest | 1,400,000 | 1,600,000 | ||
Purchased Credit-impaired (PCI) loans accreting interest | 2,200,000 | 3,000,000 | ||
Number of accruing loans past due more than ninety days | 0 | 0 | ||
Deferred loan fees | 107,000 | 769,000 | ||
Unaccreted purchase discounts on non-PCI loans | 1,500,000 | 2,100,000 | ||
Commercial and industrial | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 5,000 | 29,000 | ||
60 to 89 Days Past Due | 0 | 0 | ||
Greater than 90 days past due (non-accrual) | 1,229,000 | [1] | 4,893,000 | [1] |
Total past due | 1,234,000 | 4,922,000 | ||
Current | 167,606,000 | 171,509,000 | ||
Total loans | 168,840,000 | [2] | 176,431,000 | [2] |
Non-accrual loans to total loans | 0.70% | 2.80% | ||
Commercial real estate, owner-occupied | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 0 | 0 | ||
60 to 89 Days Past Due | 0 | 0 | ||
Greater than 90 days past due (non-accrual) | 1,403,000 | [1] | 1,403,000 | [1] |
Total past due | 1,403,000 | 1,403,000 | ||
Current | 204,770,000 | 195,003,000 | ||
Total loans | 206,173,000 | [2] | 196,406,000 | [2] |
Non-accrual loans to total loans | 0.70% | 0.70% | ||
Commercial real estate, investor | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 0 | 0 | ||
60 to 89 Days Past Due | 0 | 0 | ||
Greater than 90 days past due (non-accrual) | 5,832,000 | [1] | 6,843,000 | [1] |
Total past due | 5,832,000 | 6,843,000 | ||
Current | 541,505,000 | 502,163,000 | ||
Total loans | 547,337,000 | [2] | 509,006,000 | [2] |
Non-accrual loans to total loans | 1.10% | 1.30% | ||
Minimum principal amount of an investor commercial real estate loan that requires annual proof of income | 750,000 | ' | ||
Construction | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 1,720,000 | 0 | ||
60 to 89 Days Past Due | 0 | 0 | ||
Greater than 90 days past due (non-accrual) | 7,045,000 | [1] | 2,239,000 | [1] |
Total past due | 8,765,000 | 2,239,000 | ||
Current | 16,228,000 | 28,426,000 | ||
Total loans | 24,993,000 | [2] | 30,665,000 | [2] |
Non-accrual loans to total loans | 28.20% | 7.30% | ||
Home equity | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 0 | 294,000 | ||
60 to 89 Days Past Due | 240,000 | 0 | ||
Greater than 90 days past due (non-accrual) | 359,000 | [1] | 545,000 | [1] |
Total past due | 599,000 | 839,000 | ||
Current | 85,605,000 | 92,398,000 | ||
Total loans | 86,204,000 | [2] | 93,237,000 | [2] |
Non-accrual loans to total loans | 0.40% | 0.60% | ||
Other residential | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 0 | [3] | 167,000 | [3] |
60 to 89 Days Past Due | 0 | [3] | 0 | [3] |
Greater than 90 days past due (non-accrual) | 1,117,000 | [1],[3] | 1,196,000 | [1],[3] |
Total past due | 1,117,000 | [3] | 1,363,000 | [3] |
Current | 42,455,000 | [3] | 48,069,000 | [3] |
Total loans | 43,572,000 | [2],[3] | 49,432,000 | [2],[3] |
Non-accrual loans to total loans | 2.60% | [3] | 2.40% | [3] |
Installment and other consumer | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 246,000 | 98,000 | ||
60 to 89 Days Past Due | 2,000 | 0 | ||
Greater than 90 days past due (non-accrual) | 311,000 | [1] | 533,000 | [1] |
Total past due | 559,000 | 631,000 | ||
Current | 15,173,000 | 18,144,000 | ||
Total loans | $15,732,000 | [2] | $18,775,000 | [2] |
Non-accrual loans to total loans | 2.00% | 2.80% | ||
[1] | Amounts include $1.4 million and $1.6 million of Purchased Credit Impaired ("PCI") loans that have stopped accreting interest at September 30, 2013 and December 31, 2012, respectively, and exclude accreting PCI loans of $2.2 million and $3.0 million at September 30, 2013 and December 31, 2012, respectively, as their accretable yield interest recognition is independent from the underlying contractual loan delinquency status. There were no accruing loans past due more than ninety days at September 30, 2013 or December 31, 2012. | |||
[2] | Amounts were net of deferred loan fees of $107 thousand and $769 thousand at September 30, 2013 and December 31, 2012, respectively. Amounts were also net of unaccreted purchase discounts on non-PCI loans of $1.5 million and $2.1 million at September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Our residential loan portfolio includes no sub-prime loans, nor is it our normal practice to underwrite loans commonly referred to as "Alt-A mortgages", the characteristics of which are loans lacking full documentation, borrowers having low FICO scores or higher loan-to-value ratios. |
Loans_and_Allowance_for_Loan_L3
Loans and Allowance for Loan Losses - Credit Quality of Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | $1,092,851 | [1] | $1,073,952 | [1] |
Purchase credit-impaired | 3,567 | 4,549 | ||
Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 168,840 | [1] | 176,431 | [1] |
Purchase credit-impaired | 284 | 640 | ||
Loans and leases receivable | 168,557 | 175,791 | ||
Commercial real estate, owner-occupied | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 206,173 | [1] | 196,406 | [1] |
Purchase credit-impaired | 2,546 | 2,515 | ||
Loans and leases receivable | 203,626 | 193,891 | ||
Commercial real estate, investor | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 547,337 | [1] | 509,006 | [1] |
Purchase credit-impaired | 737 | 1,394 | ||
Loans and leases receivable | 546,600 | 507,612 | ||
Construction | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 24,993 | [1] | 30,665 | [1] |
Purchase credit-impaired | 0 | 0 | ||
Home equity | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 86,204 | [1] | 93,237 | [1] |
Purchase credit-impaired | 0 | 0 | ||
Other residential | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 43,572 | [1],[2] | 49,432 | [1],[2] |
Purchase credit-impaired | 0 | 0 | ||
Installment and other consumer | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 15,732 | [1] | 18,775 | [1] |
Purchase credit-impaired | 0 | 0 | ||
Pass | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 1,016,974 | 987,851 | ||
Purchase credit-impaired | 1,328 | 1,862 | ||
Pass | Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 148,974 | 148,771 | ||
Pass | Commercial real estate, owner-occupied | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 183,754 | 170,553 | ||
Pass | Commercial real estate, investor | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 529,573 | 489,978 | ||
Pass | Construction | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 16,669 | 26,287 | ||
Pass | Home equity | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 81,629 | 86,957 | ||
Pass | Other residential | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 40,082 | 45,634 | ||
Pass | Installment and other consumer | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 14,965 | 17,809 | ||
Special Mention | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 44,963 | 49,185 | ||
Purchase credit-impaired | 737 | 933 | ||
Special Mention | Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 14,613 | 13,267 | ||
Special Mention | Commercial real estate, owner-occupied | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 16,626 | 20,346 | ||
Special Mention | Commercial real estate, investor | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 8,575 | 8,671 | ||
Special Mention | Construction | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 1,278 | 1,970 | ||
Special Mention | Home equity | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 2,082 | 2,931 | ||
Special Mention | Other residential | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 1,052 | 1,067 | ||
Special Mention | Installment and other consumer | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 0 | 0 | ||
Substandard | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 30,914 | 36,916 | ||
Purchase credit-impaired | 1,502 | 1,754 | ||
Substandard | Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 4,970 | 13,753 | ||
Substandard | Commercial real estate, owner-occupied | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 3,246 | 2,992 | ||
Substandard | Commercial real estate, investor | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans and leases receivable | 8,452 | 8,963 | ||
Substandard | Construction | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 7,046 | 2,408 | ||
Substandard | Home equity | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 2,493 | 3,349 | ||
Substandard | Other residential | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 2,438 | 2,731 | ||
Substandard | Installment and other consumer | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | $767 | $966 | ||
[1] | Amounts were net of deferred loan fees of $107 thousand and $769 thousand at September 30, 2013 and December 31, 2012, respectively. Amounts were also net of unaccreted purchase discounts on non-PCI loans of $1.5 million and $2.1 million at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Our residential loan portfolio includes no sub-prime loans, nor is it our normal practice to underwrite loans commonly referred to as "Alt-A mortgages", the characteristics of which are loans lacking full documentation, borrowers having low FICO scores or higher loan-to-value ratios. |
Loans_and_Allowance_for_Loan_L4
Loans and Allowance for Loan Losses - Troubled Debt Restructuring by Class (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | $21,133,000 | [1] | $18,284,000 | [1] |
TDR loans accruing interest as of period end | 12,600,000 | 10,800,000 | ||
Commercial and industrial | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 6,139,000 | 9,470,000 | ||
Commercial real estate, owner-occupied | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 4,354,000 | 1,403,000 | ||
Commercial real estate, investor | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 536,000 | 0 | ||
Construction | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 5,798,000 | 1,929,000 | ||
Home equity | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 513,000 | 908,000 | ||
Other residential | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 2,085,000 | 2,831,000 | ||
Installment and other consumer | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | $1,708,000 | $1,743,000 | ||
[1] | Includes $12.6 million and $10.8 million of TDR loans that were accruing interest as of September 30, 2013 and December 31, 2012, respectively. |
Loans_and_Allowance_for_Loan_L5
Loans and Allowance for Loan Losses - Troubled Debt Restructuring Modifications (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
contract | contract | loans | contract | Commercial real estate loans | Commercial real estate, investor | Commercial real estate, investor | Commercial real estate, owner-occupied | Commercial real estate, owner-occupied | Commercial and industrial | Commercial and industrial | Commercial and industrial | Commercial and industrial | Construction | Construction | Construction | Home equity | Other residential | Other residential | Installment and other consumer | Installment and other consumer | Installment and other consumer | Installment and other consumer | |
contract | loans | contract | contract | contract | contract | contract | contract | contract | loans | contract | contract | contract | contract | contract | contract | contract | contract | contract | contract | ||||
contract | loans | ||||||||||||||||||||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Modifications, Subsequently Paid, Recorded Investment | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-modification outstanding recorded investment | $218 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Post-modification outstanding recorded investment | ' | ' | 218 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Contracts Modified | 7 | 3 | 10 | 20 | ' | 1 | 1 | 1 | 1 | 3 | 1 | 5 | 10 | 1 | 1 | 6 | 2 | 1 | 1 | 2 | 1 | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | 4,098 | 843 | 9,342 | 21,960 | ' | 539 | 539 | 2,961 | 2,961 | 587 | 135 | 1,086 | 9,456 | 4,745 | 4,745 | 11,324 | 472 | 682 | 682 | 11 | 26 | 11 | 26 |
Post-Modification Outstanding Recorded Investment | 4,063 | 842 | 9,326 | 21,881 | ' | 538 | 538 | 2,956 | 2,956 | 560 | 134 | 1,057 | 9,375 | 4,766 | 4,766 | 11,324 | 474 | 682 | 682 | 9 | 26 | 9 | 26 |
Post-Modification Outstanding Recorded Investment at period end | 4,054 | 839 | 9,293 | 14,507 | ' | 536 | 536 | 2,951 | 2,951 | 558 | 133 | 991 | 6,766 | 4,806 | 4,806 | 6,564 | 471 | 680 | 680 | 9 | 26 | 9 | 26 |
Number of troubled debt restructurings | ' | ' | 1 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Troubled debt restructurings that subsequently defaulted | ' | ' | $4,800 | $833 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Losses - Effects of New Methodology on ALLL (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Calculated Provision Based on New Methodology | ($480) | $1,100 | $2,100 | $390 | $2,200 |
Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | 0 | ' | ' | 0 | ' |
Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -480 | ' | ' | 390 | ' |
Commercial and industrial | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -965 | -189 | 259 | -1,204 | 291 |
Commercial and industrial | Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -919 | ' | ' | -919 | ' |
Commercial and industrial | Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -46 | ' | ' | -285 | ' |
Commercial real estate, owner-occupied | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | 427 | -26 | 119 | 436 | 138 |
Commercial real estate, owner-occupied | Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | 370 | ' | ' | 370 | ' |
Commercial real estate, owner-occupied | Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | 57 | ' | ' | 66 | ' |
Commercial real estate, investor | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | 1,338 | 345 | 2,160 | 1,308 | 2,294 |
Commercial real estate, investor | Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | 1,265 | ' | ' | 1,265 | ' |
Commercial real estate, investor | Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | 73 | ' | ' | 43 | ' |
Construction | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -210 | 1,084 | -375 | 916 | -723 |
Construction | Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -82 | ' | ' | -82 | ' |
Construction | Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -128 | ' | ' | 998 | ' |
Home equity | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -173 | 63 | 2 | -159 | 236 |
Home equity | Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -144 | ' | ' | -144 | ' |
Home equity | Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -29 | ' | ' | -15 | ' |
Other residential | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -124 | -30 | -39 | -274 | -221 |
Other residential | Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -126 | ' | ' | -126 | ' |
Other residential | Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | 2 | ' | ' | -148 | ' |
Installment and other consumer | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -669 | 28 | 35 | -506 | 178 |
Installment and other consumer | Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -219 | ' | ' | -219 | ' |
Installment and other consumer | Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -450 | ' | ' | -287 | ' |
Unallocated | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -104 | -175 | -61 | -127 | 7 |
Unallocated | Difference in ALLL | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | -145 | ' | ' | -145 | ' |
Unallocated | Calculated Provision Based on Prior Methodology | ' | ' | ' | ' | ' |
Calculated Provision Based on New Methodology | $41 | ' | ' | $18 | ' |
Loans_and_Allowance_for_Loan_L7
Loans and Allowance for Loan Losses - Impaired Loans and Related Allowance (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | $11,005,000 | ' | ' | $11,005,000 | ' | $11,307,000 | |||
Recorded investment in impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 11,714,000 | ' | ' | 11,714,000 | ' | 18,788,000 | |||
With a specific allowance recorded | 19,313,000 | ' | ' | 19,313,000 | ' | 11,515,000 | |||
Total recorded investment in impaired loans | 31,027,000 | ' | ' | 31,027,000 | ' | 30,303,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 18,798,000 | ' | ' | 18,798,000 | ' | 23,959,000 | |||
With a specific allowance recorded | 20,699,000 | ' | ' | 20,699,000 | ' | 15,411,000 | |||
Total unpaid principal balance of impaired loans | 39,497,000 | ' | ' | 39,497,000 | ' | 39,370,000 | |||
Specific valuation | 2,803,000 | ' | ' | 2,803,000 | ' | 2,354,000 | |||
Average recorded investment in impaired loans during the period | 29,520,000 | 30,349,000 | 37,977,000 | 29,408,000 | 39,194,000 | ' | |||
Interest income recognized on impaired loans during the quarter ended | 236,000 | 397,000 | 588,000 | ' | ' | ' | |||
Interest income recognized using cash-basis | ' | ' | ' | 895,000 | 1,487,000 | ' | |||
Gross interest income that would have been recorded had nonaccrual loans been current | 291,000 | 272,000 | 387,000 | 827,000 | 870,000 | ' | |||
Charged-off portion of impaired loans | 5,900,000 | ' | ' | 5,900,000 | ' | ' | |||
Outstanding commitments to extend credit on impaired loans | 447,000 | ' | ' | 447,000 | ' | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 2,562,000 | ' | ' | 2,562,000 | ' | 2,091,000 | |||
Ending ALLL related to purchased credit-impaired loans | 241,000 | ' | ' | 241,000 | ' | 263,000 | |||
Collectively evaluated for impairment | 1,061,087,000 | ' | ' | 1,061,087,000 | ' | 1,042,907,000 | |||
Individually evaluated for impairment | 28,197,000 | [1] | ' | ' | 28,197,000 | [1] | ' | 26,496,000 | [2] |
Purchase credit-impaired | 3,567,000 | ' | ' | 3,567,000 | ' | 4,549,000 | |||
Loans and Leases Receivable, Net of Deferred Income | 1,092,851,000 | [3] | ' | ' | 1,092,851,000 | [3] | ' | 1,073,952,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.26% | ' | ' | 1.26% | ' | 1.27% | |||
Allowance for loan losses to non-accrual loans | 80.00% | ' | ' | 80.00% | ' | 77.00% | |||
Commercial and industrial | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 1,921,000 | ' | ' | 1,921,000 | ' | 2,969,000 | |||
Recorded investment in impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 1,839,000 | ' | ' | 1,839,000 | ' | 6,825,000 | |||
With a specific allowance recorded | 4,300,000 | ' | ' | 4,300,000 | ' | 2,645,000 | |||
Total recorded investment in impaired loans | 6,139,000 | ' | ' | 6,139,000 | ' | 9,470,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 1,839,000 | ' | ' | 1,839,000 | ' | 7,633,000 | |||
With a specific allowance recorded | 4,535,000 | ' | ' | 4,535,000 | ' | 2,930,000 | |||
Total unpaid principal balance of impaired loans | 6,374,000 | ' | ' | 6,374,000 | ' | 10,563,000 | |||
Specific valuation | 859,000 | ' | ' | 859,000 | ' | 1,131,000 | |||
Average recorded investment in impaired loans during the period | 5,933,000 | 7,327,000 | 9,882,000 | 7,584,000 | 12,116,000 | ' | |||
Interest income recognized on impaired loans during the quarter ended | 102,000 | 107,000 | 351,000 | ' | ' | ' | |||
Interest income recognized using cash-basis | ' | ' | ' | 343,000 | 672,000 | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 676,000 | ' | ' | 676,000 | ' | 1,090,000 | |||
Ending ALLL related to purchased credit-impaired loans | 183,000 | ' | ' | 183,000 | ' | 41,000 | |||
Collectively evaluated for impairment | 162,701,000 | ' | ' | 162,701,000 | ' | 166,860,000 | |||
Individually evaluated for impairment | 5,855,000 | [1] | ' | ' | 5,855,000 | [1] | ' | 8,931,000 | [2] |
Purchase credit-impaired | 284,000 | ' | ' | 284,000 | ' | 640,000 | |||
Loans and Leases Receivable, Net of Deferred Income | 168,840,000 | [3] | ' | ' | 168,840,000 | [3] | ' | 176,431,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.65% | ' | ' | 1.65% | ' | 2.32% | |||
Allowance for loan losses to non-accrual loans | 226.00% | ' | ' | 226.00% | ' | 84.00% | |||
Commercial real estate, owner-occupied | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 1,732,000 | ' | ' | 1,732,000 | ' | 1,287,000 | |||
Recorded investment in impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 1,403,000 | ' | ' | 1,403,000 | ' | 1,403,000 | |||
With a specific allowance recorded | 4,094,000 | ' | ' | 4,094,000 | ' | 471,000 | |||
Total recorded investment in impaired loans | 5,497,000 | ' | ' | 5,497,000 | ' | 1,874,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 3,060,000 | ' | ' | 3,060,000 | ' | 3,060,000 | |||
With a specific allowance recorded | 5,119,000 | ' | ' | 5,119,000 | ' | 966,000 | |||
Total unpaid principal balance of impaired loans | 8,179,000 | ' | ' | 8,179,000 | ' | 4,026,000 | |||
Specific valuation | 102,000 | ' | ' | 102,000 | ' | 26,000 | |||
Average recorded investment in impaired loans during the period | 3,526,000 | 2,534,000 | 1,865,000 | 2,861,000 | 1,705,000 | ' | |||
Interest income recognized on impaired loans during the quarter ended | 63,000 | 53,000 | 28,000 | ' | ' | ' | |||
Interest income recognized using cash-basis | ' | ' | ' | 170,000 | 97,000 | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 43,000 | ' | ' | 43,000 | ' | 0 | |||
Ending ALLL related to purchased credit-impaired loans | 58,000 | ' | ' | 58,000 | ' | 26,000 | |||
Collectively evaluated for impairment | 200,676,000 | ' | ' | 200,676,000 | ' | 193,891,000 | |||
Individually evaluated for impairment | 2,951,000 | [1] | ' | ' | 2,951,000 | [1] | ' | 0 | [2] |
Purchase credit-impaired | 2,546,000 | ' | ' | 2,546,000 | ' | 2,515,000 | |||
Loans and Leases Receivable, Net of Deferred Income | 206,173,000 | [3] | ' | ' | 206,173,000 | [3] | ' | 196,406,000 | [3] |
Ratio of allowance for loan losses to total loans | 0.89% | ' | ' | 0.89% | ' | 0.67% | |||
Allowance for loan losses to non-accrual loans | 131.00% | ' | ' | 131.00% | ' | 94.00% | |||
Commercial real estate, investor | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 5,590,000 | ' | ' | 5,590,000 | ' | 3,998,000 | |||
Recorded investment in impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 3,457,000 | ' | ' | 3,457,000 | ' | 3,725,000 | |||
With a specific allowance recorded | 2,911,000 | ' | ' | 2,911,000 | ' | 4,513,000 | |||
Total recorded investment in impaired loans | 6,368,000 | ' | ' | 6,368,000 | ' | 8,238,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 5,449,000 | ' | ' | 5,449,000 | ' | 5,717,000 | |||
With a specific allowance recorded | 2,911,000 | ' | ' | 2,911,000 | ' | 4,887,000 | |||
Total unpaid principal balance of impaired loans | 8,360,000 | ' | ' | 8,360,000 | ' | 10,604,000 | |||
Specific valuation | 125,000 | ' | ' | 125,000 | ' | 374,000 | |||
Average recorded investment in impaired loans during the period | 6,389,000 | 6,041,000 | 6,418,000 | 6,178,000 | 5,472,000 | ' | |||
Interest income recognized on impaired loans during the quarter ended | 7,000 | 0 | 30,000 | ' | ' | ' | |||
Interest income recognized using cash-basis | ' | ' | ' | 7,000 | 95,000 | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 125,000 | ' | ' | 125,000 | ' | 178,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 196,000 | |||
Collectively evaluated for impairment | 540,232,000 | ' | ' | 540,232,000 | ' | 500,768,000 | |||
Individually evaluated for impairment | 6,368,000 | [1] | ' | ' | 6,368,000 | [1] | ' | 6,844,000 | [2] |
Purchase credit-impaired | 737,000 | ' | ' | 737,000 | ' | 1,394,000 | |||
Loans and Leases Receivable, Net of Deferred Income | 547,337,000 | [3] | ' | ' | 547,337,000 | [3] | ' | 509,006,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.04% | ' | ' | 1.04% | ' | 0.86% | |||
Allowance for loan losses to non-accrual loans | 98.00% | ' | ' | 98.00% | ' | 64.00% | |||
Construction | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 251,000 | ' | ' | 251,000 | ' | 493,000 | |||
Recorded investment in impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 2,239,000 | ' | ' | 2,239,000 | ' | 2,328,000 | |||
With a specific allowance recorded | 5,798,000 | ' | ' | 5,798,000 | ' | 1,840,000 | |||
Total recorded investment in impaired loans | 8,037,000 | ' | ' | 8,037,000 | ' | 4,168,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 5,146,000 | ' | ' | 5,146,000 | ' | 2,514,000 | |||
With a specific allowance recorded | 5,798,000 | ' | ' | 5,798,000 | ' | 4,519,000 | |||
Total unpaid principal balance of impaired loans | 10,944,000 | ' | ' | 10,944,000 | ' | 7,033,000 | |||
Specific valuation | 1,236,000 | ' | ' | 1,236,000 | ' | 118,000 | |||
Average recorded investment in impaired loans during the period | 8,479,000 | 8,820,000 | 13,442,000 | 7,138,000 | 14,097,000 | ' | |||
Interest income recognized on impaired loans during the quarter ended | 21,000 | 185,000 | 141,000 | ' | ' | ' | |||
Interest income recognized using cash-basis | ' | ' | ' | 233,000 | 462,000 | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 1,236,000 | ' | ' | 1,236,000 | ' | 118,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 16,956,000 | ' | ' | 16,956,000 | ' | 26,497,000 | |||
Individually evaluated for impairment | 8,037,000 | [1] | ' | ' | 8,037,000 | [1] | ' | 4,168,000 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Loans and Leases Receivable, Net of Deferred Income | 24,993,000 | [3] | ' | ' | 24,993,000 | [3] | ' | 30,665,000 | [3] |
Ratio of allowance for loan losses to total loans | 5.95% | ' | ' | 5.95% | ' | 1.99% | |||
Allowance for loan losses to non-accrual loans | 21.00% | ' | ' | 21.00% | ' | 27.00% | |||
Home equity | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 906,000 | ' | ' | 906,000 | ' | 1,110,000 | |||
Recorded investment in impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 356,000 | ' | ' | 356,000 | ' | 931,000 | |||
With a specific allowance recorded | 276,000 | ' | ' | 276,000 | ' | 261,000 | |||
Total recorded investment in impaired loans | 632,000 | ' | ' | 632,000 | ' | 1,192,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 842,000 | ' | ' | 842,000 | ' | 1,417,000 | |||
With a specific allowance recorded | 402,000 | ' | ' | 402,000 | ' | 324,000 | |||
Total unpaid principal balance of impaired loans | 1,244,000 | ' | ' | 1,244,000 | ' | 1,741,000 | |||
Specific valuation | 74,000 | ' | ' | 74,000 | ' | 154,000 | |||
Average recorded investment in impaired loans during the period | 775,000 | 1,158,000 | 1,499,000 | 1,022,000 | 1,255,000 | ' | |||
Interest income recognized on impaired loans during the quarter ended | 5,000 | 12,000 | 10,000 | ' | ' | ' | |||
Interest income recognized using cash-basis | ' | ' | ' | 25,000 | 22,000 | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 74,000 | ' | ' | 74,000 | ' | 154,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 85,572,000 | ' | ' | 85,572,000 | ' | 92,045,000 | |||
Individually evaluated for impairment | 632,000 | [1] | ' | ' | 632,000 | [1] | ' | 1,192,000 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Loans and Leases Receivable, Net of Deferred Income | 86,204,000 | [3] | ' | ' | 86,204,000 | [3] | ' | 93,237,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.14% | ' | ' | 1.14% | ' | 1.36% | |||
Allowance for loan losses to non-accrual loans | 273.00% | ' | ' | 273.00% | ' | 232.00% | |||
Other residential | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 250,000 | ' | ' | 250,000 | ' | 431,000 | |||
Recorded investment in impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 2,303,000 | ' | ' | 2,303,000 | ' | 2,598,000 | |||
With a specific allowance recorded | 226,000 | ' | ' | 226,000 | ' | 715,000 | |||
Total recorded investment in impaired loans | 2,529,000 | ' | ' | 2,529,000 | ' | 3,313,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 2,303,000 | ' | ' | 2,303,000 | ' | 2,598,000 | |||
With a specific allowance recorded | 226,000 | ' | ' | 226,000 | ' | 715,000 | |||
Total unpaid principal balance of impaired loans | 2,529,000 | ' | ' | 2,529,000 | ' | 3,313,000 | |||
Specific valuation | 26,000 | ' | ' | 26,000 | ' | 120,000 | |||
Average recorded investment in impaired loans during the period | 2,576,000 | 2,590,000 | 2,641,000 | 2,744,000 | 2,396,000 | ' | |||
Interest income recognized on impaired loans during the quarter ended | 22,000 | 22,000 | 13,000 | ' | ' | ' | |||
Interest income recognized using cash-basis | ' | ' | ' | 67,000 | 88,000 | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 27,000 | ' | ' | 27,000 | ' | 120,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 41,044,000 | ' | ' | 41,044,000 | ' | 46,119,000 | |||
Individually evaluated for impairment | 2,528,000 | [1] | ' | ' | 2,528,000 | [1] | ' | 3,313,000 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Loans and Leases Receivable, Net of Deferred Income | 43,572,000 | [3],[4] | ' | ' | 43,572,000 | [3],[4] | ' | 49,432,000 | [3],[4] |
Ratio of allowance for loan losses to total loans | 0.64% | ' | ' | 0.64% | ' | 1.11% | |||
Allowance for loan losses to non-accrual loans | 25.00% | ' | ' | 25.00% | ' | 46.00% | |||
Installment and other consumer | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 263,000 | ' | ' | 263,000 | ' | 800,000 | |||
Recorded investment in impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 117,000 | ' | ' | 117,000 | ' | 978,000 | |||
With a specific allowance recorded | 1,708,000 | ' | ' | 1,708,000 | ' | 1,070,000 | |||
Total recorded investment in impaired loans | 1,825,000 | ' | ' | 1,825,000 | ' | 2,048,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
With no specific allowance recorded | 159,000 | ' | ' | 159,000 | ' | 1,020,000 | |||
With a specific allowance recorded | 1,708,000 | ' | ' | 1,708,000 | ' | 1,070,000 | |||
Total unpaid principal balance of impaired loans | 1,867,000 | ' | ' | 1,867,000 | ' | 2,090,000 | |||
Specific valuation | 381,000 | ' | ' | 381,000 | ' | 431,000 | |||
Average recorded investment in impaired loans during the period | 1,842,000 | 1,879,000 | 2,230,000 | 1,881,000 | 2,153,000 | ' | |||
Interest income recognized on impaired loans during the quarter ended | 16,000 | 18,000 | 15,000 | ' | ' | ' | |||
Interest income recognized using cash-basis | ' | ' | ' | 50,000 | 51,000 | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 381,000 | ' | ' | 381,000 | ' | 431,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 13,906,000 | ' | ' | 13,906,000 | ' | 16,727,000 | |||
Individually evaluated for impairment | 1,826,000 | [1] | ' | ' | 1,826,000 | [1] | ' | 2,048,000 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Loans and Leases Receivable, Net of Deferred Income | 15,732,000 | [3] | ' | ' | 15,732,000 | [3] | ' | 18,775,000 | [3] |
Ratio of allowance for loan losses to total loans | 4.09% | ' | ' | 4.09% | ' | 6.56% | |||
Allowance for loan losses to non-accrual loans | 207.00% | ' | ' | 207.00% | ' | 231.00% | |||
Unallocated | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 92,000 | ' | ' | 92,000 | ' | 219,000 | |||
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' | ' | |||
Ending ALLL related to loans individually evaluated for impairment | 0 | ' | ' | 0 | ' | 0 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 0 | ' | ' | 0 | ' | 0 | |||
Individually evaluated for impairment | 0 | [1] | ' | ' | 0 | [1] | ' | 0 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Loans and Leases Receivable, Net of Deferred Income | $0 | ' | ' | $0 | ' | $0 | |||
[1] | 1 Total excludes $2.8 million of PCI loans that have experienced post-acquisition declines in cash flows expected to be collected.These loans are included in the "purchased credit-impaired" amount in the next line below.NM - Not Meaningful | ||||||||
[2] | Total excludes $3.8 million PCI loans that have experienced credit deterioration post-acquisition, which are included in the "purchased credit-impaired" amount in the next line below. | ||||||||
[3] | Amounts were net of deferred loan fees of $107 thousand and $769 thousand at September 30, 2013 and December 31, 2012, respectively. Amounts were also net of unaccreted purchase discounts on non-PCI loans of $1.5 million and $2.1 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||
[4] | Our residential loan portfolio includes no sub-prime loans, nor is it our normal practice to underwrite loans commonly referred to as "Alt-A mortgages", the characteristics of which are loans lacking full documentation, borrowers having low FICO scores or higher loan-to-value ratios. |
Loans_and_Allowance_for_Loan_L8
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | $14,357,000 | $13,434,000 | $13,435,000 | $13,661,000 | $14,639,000 | ' | |||
(Reversal of) provision for loan losses | -480,000 | 1,100,000 | 2,100,000 | 390,000 | 2,200,000 | ' | |||
Charge-offs | -154,000 | -610,000 | -2,475,000 | -847,000 | -4,167,000 | ' | |||
Recoveries | 85,000 | 433,000 | 79,000 | 604,000 | 467,000 | ' | |||
Ending balance | 13,808,000 | 14,357,000 | 13,139,000 | 13,808,000 | 13,139,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 11,005,000 | ' | ' | 11,005,000 | ' | 11,307,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 2,562,000 | ' | ' | 2,562,000 | ' | 2,091,000 | |||
Ending ALLL related to purchased credit-impaired loans | 241,000 | ' | ' | 241,000 | ' | 263,000 | |||
Collectively evaluated for impairment | 1,061,087,000 | ' | ' | 1,061,087,000 | ' | 1,042,907,000 | |||
Individually evaluated for impairment | 28,197,000 | [1] | ' | ' | 28,197,000 | [1] | ' | 26,496,000 | [2] |
Purchase credit-impaired | 3,567,000 | ' | ' | 3,567,000 | ' | 4,549,000 | |||
Total loans | 1,092,851,000 | [3] | ' | ' | 1,092,851,000 | [3] | ' | 1,073,952,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.26% | ' | ' | 1.26% | ' | 1.27% | |||
Allowance for loan losses to non-accrual loans | 80.00% | ' | ' | 80.00% | ' | 77.00% | |||
PCI loans impaired post-acquisition | 2,800,000 | ' | ' | 2,800,000 | ' | 3,800,000 | |||
Commercial and industrial | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | 3,799,000 | 4,032,000 | 3,886,000 | 4,100,000 | 4,334,000 | ' | |||
(Reversal of) provision for loan losses | -965,000 | -189,000 | 259,000 | -1,204,000 | 291,000 | ' | |||
Charge-offs | -129,000 | -386,000 | -15,000 | -586,000 | -865,000 | ' | |||
Recoveries | 75,000 | 342,000 | 78,000 | 470,000 | 448,000 | ' | |||
Ending balance | 2,780,000 | 3,799,000 | 4,208,000 | 2,780,000 | 4,208,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 1,921,000 | ' | ' | 1,921,000 | ' | 2,969,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 676,000 | ' | ' | 676,000 | ' | 1,090,000 | |||
Ending ALLL related to purchased credit-impaired loans | 183,000 | ' | ' | 183,000 | ' | 41,000 | |||
Collectively evaluated for impairment | 162,701,000 | ' | ' | 162,701,000 | ' | 166,860,000 | |||
Individually evaluated for impairment | 5,855,000 | [1] | ' | ' | 5,855,000 | [1] | ' | 8,931,000 | [2] |
Purchase credit-impaired | 284,000 | ' | ' | 284,000 | ' | 640,000 | |||
Total loans | 168,840,000 | [3] | ' | ' | 168,840,000 | [3] | ' | 176,431,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.65% | ' | ' | 1.65% | ' | 2.32% | |||
Allowance for loan losses to non-accrual loans | 226.00% | ' | ' | 226.00% | ' | 84.00% | |||
Commercial real estate, owner-occupied | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | 1,406,000 | 1,348,000 | 1,148,000 | 1,313,000 | 1,305,000 | ' | |||
(Reversal of) provision for loan losses | 427,000 | -26,000 | 119,000 | 436,000 | 138,000 | ' | |||
Charge-offs | 0 | 0 | 0 | 0 | -181,000 | ' | |||
Recoveries | 0 | 84,000 | 0 | 84,000 | 5,000 | ' | |||
Ending balance | 1,833,000 | 1,406,000 | 1,267,000 | 1,833,000 | 1,267,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 1,732,000 | ' | ' | 1,732,000 | ' | 1,287,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 43,000 | ' | ' | 43,000 | ' | 0 | |||
Ending ALLL related to purchased credit-impaired loans | 58,000 | ' | ' | 58,000 | ' | 26,000 | |||
Collectively evaluated for impairment | 200,676,000 | ' | ' | 200,676,000 | ' | 193,891,000 | |||
Individually evaluated for impairment | 2,951,000 | [1] | ' | ' | 2,951,000 | [1] | ' | 0 | [2] |
Purchase credit-impaired | 2,546,000 | ' | ' | 2,546,000 | ' | 2,515,000 | |||
Total loans | 206,173,000 | [3] | ' | ' | 206,173,000 | [3] | ' | 196,406,000 | [3] |
Ratio of allowance for loan losses to total loans | 0.89% | ' | ' | 0.89% | ' | 0.67% | |||
Allowance for loan losses to non-accrual loans | 131.00% | ' | ' | 131.00% | ' | 94.00% | |||
Commercial real estate, investor | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | 4,368,000 | 4,020,000 | 3,666,000 | 4,372,000 | 3,710,000 | ' | |||
(Reversal of) provision for loan losses | 1,338,000 | 345,000 | 2,160,000 | 1,308,000 | 2,294,000 | ' | |||
Charge-offs | 0 | 0 | -2,236,000 | 0 | -2,414,000 | ' | |||
Recoveries | 9,000 | 3,000 | 0 | 35,000 | 0 | ' | |||
Ending balance | 5,715,000 | 4,368,000 | 3,590,000 | 5,715,000 | 3,590,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 5,590,000 | ' | ' | 5,590,000 | ' | 3,998,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 125,000 | ' | ' | 125,000 | ' | 178,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 196,000 | |||
Collectively evaluated for impairment | 540,232,000 | ' | ' | 540,232,000 | ' | 500,768,000 | |||
Individually evaluated for impairment | 6,368,000 | [1] | ' | ' | 6,368,000 | [1] | ' | 6,844,000 | [2] |
Purchase credit-impaired | 737,000 | ' | ' | 737,000 | ' | 1,394,000 | |||
Total loans | 547,337,000 | [3] | ' | ' | 547,337,000 | [3] | ' | 509,006,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.04% | ' | ' | 1.04% | ' | 0.86% | |||
Allowance for loan losses to non-accrual loans | 98.00% | ' | ' | 98.00% | ' | 64.00% | |||
Construction | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | 1,721,000 | 650,000 | 985,000 | 611,000 | 1,505,000 | ' | |||
(Reversal of) provision for loan losses | -210,000 | 1,084,000 | -375,000 | 916,000 | -723,000 | ' | |||
Charge-offs | -24,000 | -13,000 | -15,000 | -41,000 | -187,000 | ' | |||
Recoveries | 0 | 0 | 0 | 1,000 | 0 | ' | |||
Ending balance | 1,487,000 | 1,721,000 | 595,000 | 1,487,000 | 595,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 251,000 | ' | ' | 251,000 | ' | 493,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 1,236,000 | ' | ' | 1,236,000 | ' | 118,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 16,956,000 | ' | ' | 16,956,000 | ' | 26,497,000 | |||
Individually evaluated for impairment | 8,037,000 | [1] | ' | ' | 8,037,000 | [1] | ' | 4,168,000 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Total loans | 24,993,000 | [3] | ' | ' | 24,993,000 | [3] | ' | 30,665,000 | [3] |
Ratio of allowance for loan losses to total loans | 5.95% | ' | ' | 5.95% | ' | 1.99% | |||
Allowance for loan losses to non-accrual loans | 21.00% | ' | ' | 21.00% | ' | 27.00% | |||
Home equity | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | 1,153,000 | 1,216,000 | 1,580,000 | 1,264,000 | 1,444,000 | ' | |||
(Reversal of) provision for loan losses | -173,000 | 63,000 | 2,000 | -159,000 | 236,000 | ' | |||
Charge-offs | 0 | -126,000 | -149,000 | -133,000 | -259,000 | ' | |||
Recoveries | 0 | 0 | 0 | 8,000 | 12,000 | ' | |||
Ending balance | 980,000 | 1,153,000 | 1,433,000 | 980,000 | 1,433,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 906,000 | ' | ' | 906,000 | ' | 1,110,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 74,000 | ' | ' | 74,000 | ' | 154,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 85,572,000 | ' | ' | 85,572,000 | ' | 92,045,000 | |||
Individually evaluated for impairment | 632,000 | [1] | ' | ' | 632,000 | [1] | ' | 1,192,000 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Total loans | 86,204,000 | [3] | ' | ' | 86,204,000 | [3] | ' | 93,237,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.14% | ' | ' | 1.14% | ' | 1.36% | |||
Allowance for loan losses to non-accrual loans | 273.00% | ' | ' | 273.00% | ' | 232.00% | |||
Other residential | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | 401,000 | 431,000 | 562,000 | 551,000 | 940,000 | ' | |||
(Reversal of) provision for loan losses | -124,000 | -30,000 | -39,000 | -274,000 | -221,000 | ' | |||
Charge-offs | 0 | 0 | 0 | 0 | -196,000 | ' | |||
Recoveries | 0 | 0 | 0 | 0 | 0 | ' | |||
Ending balance | 277,000 | 401,000 | 523,000 | 277,000 | 523,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 250,000 | ' | ' | 250,000 | ' | 431,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 27,000 | ' | ' | 27,000 | ' | 120,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 41,044,000 | ' | ' | 41,044,000 | ' | 46,119,000 | |||
Individually evaluated for impairment | 2,528,000 | [1] | ' | ' | 2,528,000 | [1] | ' | 3,313,000 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Total loans | 43,572,000 | [3],[4] | ' | ' | 43,572,000 | [3],[4] | ' | 49,432,000 | [3],[4] |
Ratio of allowance for loan losses to total loans | 0.64% | ' | ' | 0.64% | ' | 1.11% | |||
Allowance for loan losses to non-accrual loans | 25.00% | ' | ' | 25.00% | ' | 46.00% | |||
Installment and other consumer | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | 1,313,000 | 1,366,000 | 1,321,000 | 1,231,000 | 1,182,000 | ' | |||
(Reversal of) provision for loan losses | -669,000 | 28,000 | 35,000 | -506,000 | 178,000 | ' | |||
Charge-offs | -1,000 | -85,000 | -60,000 | -87,000 | -65,000 | ' | |||
Recoveries | 1,000 | 4,000 | 1,000 | 6,000 | 2,000 | ' | |||
Ending balance | 644,000 | 1,313,000 | 1,297,000 | 644,000 | 1,297,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 263,000 | ' | ' | 263,000 | ' | 800,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 381,000 | ' | ' | 381,000 | ' | 431,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 13,906,000 | ' | ' | 13,906,000 | ' | 16,727,000 | |||
Individually evaluated for impairment | 1,826,000 | [1] | ' | ' | 1,826,000 | [1] | ' | 2,048,000 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Total loans | 15,732,000 | [3] | ' | ' | 15,732,000 | [3] | ' | 18,775,000 | [3] |
Ratio of allowance for loan losses to total loans | 4.09% | ' | ' | 4.09% | ' | 6.56% | |||
Allowance for loan losses to non-accrual loans | 207.00% | ' | ' | 207.00% | ' | 231.00% | |||
Unallocated | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |||
Beginning balance | 196,000 | 371,000 | 287,000 | 219,000 | 219,000 | ' | |||
(Reversal of) provision for loan losses | -104,000 | -175,000 | -61,000 | -127,000 | 7,000 | ' | |||
Charge-offs | 0 | 0 | 0 | 0 | 0 | ' | |||
Recoveries | 0 | 0 | 0 | 0 | 0 | ' | |||
Ending balance | 92,000 | 196,000 | 226,000 | 92,000 | 226,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 92,000 | ' | ' | 92,000 | ' | 219,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 0 | ' | ' | 0 | ' | 0 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 0 | ' | ' | 0 | ' | 0 | |||
Individually evaluated for impairment | 0 | [1] | ' | ' | 0 | [1] | ' | 0 | [2] |
Purchase credit-impaired | 0 | ' | ' | 0 | ' | 0 | |||
Total loans | $0 | ' | ' | $0 | ' | $0 | |||
[1] | 1 Total excludes $2.8 million of PCI loans that have experienced post-acquisition declines in cash flows expected to be collected.These loans are included in the "purchased credit-impaired" amount in the next line below.NM - Not Meaningful | ||||||||
[2] | Total excludes $3.8 million PCI loans that have experienced credit deterioration post-acquisition, which are included in the "purchased credit-impaired" amount in the next line below. | ||||||||
[3] | Amounts were net of deferred loan fees of $107 thousand and $769 thousand at September 30, 2013 and December 31, 2012, respectively. Amounts were also net of unaccreted purchase discounts on non-PCI loans of $1.5 million and $2.1 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||
[4] | Our residential loan portfolio includes no sub-prime loans, nor is it our normal practice to underwrite loans commonly referred to as "Alt-A mortgages", the characteristics of which are loans lacking full documentation, borrowers having low FICO scores or higher loan-to-value ratios. |
Loans_and_Allowance_for_Loan_L9
Loans and Allowance for Loan Losses - Purchased Credit-Impaired Loans (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||
PCI Loans, Carrying Value [Abstract] | ' | ' | ' | ' | ' | ' | |||||
Unpaid principal balance | $5,939 | ' | ' | $5,939 | ' | $8,533 | |||||
Carrying value | 3,567 | ' | ' | 3,567 | ' | 4,549 | |||||
Accretable Yield [Roll Forward] | ' | ' | ' | ' | ' | ' | |||||
Balance at beginning of period | 3,277 | 3,583 | 5,386 | 3,960 | 5,405 | ' | |||||
Additions | 0 | 0 | 0 | 0 | 0 | ' | |||||
Removals | 0 | [1] | -195 | [1] | 0 | [1] | -791 | [1] | -225 | [1] | ' |
Accretion | -153 | -156 | -231 | -545 | -1,219 | ' | |||||
Reclassifications (to)/from nonaccretable difference | 0 | [2] | 45 | [2] | 20 | [2] | 500 | [2] | 1,214 | [2] | ' |
Balance at end of period | 3,124 | 3,277 | 5,175 | 3,124 | 5,175 | ' | |||||
Commercial and industrial | ' | ' | ' | ' | ' | ' | |||||
PCI Loans, Carrying Value [Abstract] | ' | ' | ' | ' | ' | ' | |||||
Unpaid principal balance | 519 | ' | ' | 519 | ' | 2,163 | |||||
Carrying value | 284 | ' | ' | 284 | ' | 640 | |||||
Commercial real estate loans | ' | ' | ' | ' | ' | ' | |||||
PCI Loans, Carrying Value [Abstract] | ' | ' | ' | ' | ' | ' | |||||
Unpaid principal balance | 5,420 | ' | ' | 5,420 | ' | 6,370 | |||||
Carrying value | $3,283 | ' | ' | $3,283 | ' | $3,909 | |||||
[1] | Represents the accretable difference that is relieved when a loan exits the PCI population due to payoff, full charge-off, or transfer to repossessed assets, etc. | ||||||||||
[2] | Primarily relates to improvements in expected credit performance and changes in expected timing of cash flows. |
Recovered_Sheet1
Loans and Allowance for Loan Losses - Pledged Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Residential loans pledged for FRB borrowings | $702.20 | $567.80 |
Other residential | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Pledged Financial Instruments, Not Separately Reported, Loans Receivable Pledged as Collateral | 24.9 | 30.1 |
Line of Credit | Federal Home Loan Bank Borrowings | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Lines of credit | $414.80 | $321.30 |
Borrowings_Lines_of_Credit_Det
Borrowings - Lines of Credit (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 05, 2008 | Sep. 30, 2013 | Dec. 31, 2012 |
Line of Credit Facility [Line Items] | ' | ' | ' |
Periodic term lender may accelerate due date | ' | '3 months | ' |
Federal Funds Purchased | Line of Credit | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amount of borrowings outstanding | ' | $0 | $0 |
Federal Home Loan Bank Borrowings | Line of Credit | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Lines of credit | ' | 414.8 | 321.3 |
Term of FHLB borrowing agreements | '10 years | ' | ' |
Principal amount of borrowing agreements with FHLB | 15 | ' | ' |
Amount of borrowings outstanding | ' | 0 | ' |
Fixed interest rate of FHLB borrowing agreement | 2.07% | ' | ' |
Periodic term interest-only payments are due | ' | '3 months | ' |
Remaining available line of credit from FHLB | ' | 399.8 | ' |
Federal Reserve Line of Credit | Line of Credit | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Lines of credit | ' | 24.9 | 30.1 |
Amount of borrowings outstanding | ' | 0 | ' |
Unsecured Debt | Federal Funds Purchased | Line of Credit | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Lines of credit | ' | $87 | $87 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||||
Dec. 05, 2008 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 05, 2008 | Sep. 30, 2013 | Dec. 05, 2008 | Mar. 31, 2009 | Dec. 05, 2008 | Dec. 05, 2008 | |
U.S. Treasury Capital Purchase Program (TCPP) | Common stock | Common stock | Senior preferred stock | Senior preferred stock | Warrant to purchase common stock | ||||||||
U.S. Treasury Capital Purchase Program (TCPP) | U.S. Treasury Capital Purchase Program (TCPP) | U.S. Treasury Capital Purchase Program (TCPP) | U.S. Treasury Capital Purchase Program (TCPP) | ||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, issued | ' | 0 | ' | ' | 0 | ' | 0 | 28,000 | ' | ' | ' | ' | ' |
Preferred stock, no par value | ' | $0 | ' | ' | $0 | ' | $0 | ' | ' | ' | ' | $0 | ' |
Per share liquidation preference for senior preferred stock | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' |
Number of common stock shares authorized to be purchased by warrant | ' | ' | ' | ' | ' | ' | ' | ' | 155,954 | 154,242 | ' | ' | ' |
Exercise price of warrant to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | 26.93 | 27.23 | ' | ' | ' |
Proceeds from issuance of senior preferred stock and warrant | ' | ' | ' | ' | ' | ' | ' | $28,000,000 | ' | ' | ' | $27,000,000 | $961,000 |
Warrant expiration period | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchased from U.S. Treasury, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000 | ' | ' |
Stock repurchased from U.S. Treasury, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000,000 | ' | ' |
Accrued but unpaid dividends on repurchased preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 179,000 | ' | ' |
Remaining accretion of repurchased preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 945,000 | ' | ' |
Cash dividends to common stockholders | ' | $982,000 | $979,000 | $965,000 | $2,932,000 | $2,784,000 | $3,751,000 | ' | ' | ' | ' | ' | ' |
Cash dividends paid per common share | ' | $0.18 | $0.18 | $0.18 | $0.54 | $0.52 | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Operating Leases | ' |
2013 | $718,000 |
2014 | 2,806,000 |
2015 | 2,881,000 |
2016 | 2,964,000 |
2017 | 2,986,000 |
Thereafter | 12,109,000 |
Total | 24,464,000 |
Litigation and Regulatory Matters | ' |
Basis point reduction in credit card interchange rates due to settlement | 0.10% |
Period of basis point reduction on credit cards due to settlement | '8 months |
Loan commitments and standby letters of credit, unused | ' |
Loss Contingencies [Line Items] | ' |
Loan commitments and standby letters of credit, off-balance sheet | 294,400,000 |
Loan commitments and standby letters of credit, unused | Minimum | ' |
Loss Contingencies [Line Items] | ' |
Interest rate range on loan commitments and standby letters of credit | 1.70% |
Loan commitments and standby letters of credit, unused | Maximum | ' |
Loss Contingencies [Line Items] | ' |
Interest rate range on loan commitments and standby letters of credit | 18.00% |
Loan commitments and standby letters of credit, unused | Interest payable and other liabilities | ' |
Loss Contingencies [Line Items] | ' |
Allowance for off balance sheet commitments | 589,000 |
Commercial lines of credit | ' |
Loss Contingencies [Line Items] | ' |
Loan commitments and standby letters of credit, off-balance sheet | 155,500,000 |
Revolving home equity lines | ' |
Loss Contingencies [Line Items] | ' |
Loan commitments and standby letters of credit, off-balance sheet | 87,700,000 |
Undisbursed construction loans | ' |
Loss Contingencies [Line Items] | ' |
Loan commitments and standby letters of credit, off-balance sheet | 27,300,000 |
Standby letters of credit | ' |
Loss Contingencies [Line Items] | ' |
Loan commitments and standby letters of credit, off-balance sheet | 13,100,000 |
Personal and other lines of credit | ' |
Loss Contingencies [Line Items] | ' |
Loan commitments and standby letters of credit, off-balance sheet | $10,800,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2011 | Aug. 31, 2010 | Jun. 30, 2007 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2011 | Aug. 31, 2010 | Jun. 30, 2007 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |||||||
Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Designated as hedging instrument | Designated as hedging instrument | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | Interest income | Interest income | Interest income | Interest income | Interest income | Assets and liabilities at fair value measured on a recurring basis | Assets and liabilities at fair value measured on a recurring basis | Assets and liabilities at fair value measured on a recurring basis | Assets and liabilities at fair value measured on a recurring basis | Assets and liabilities at fair value measured on a recurring basis | Assets and liabilities at fair value measured on a recurring basis | ||||||||||
Fair value hedge | Fair value hedge | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair Value Hierarchy, Level 2 | Fair Value Hierarchy, Level 2 | Carrying Value | Carrying Value | Carrying Value | Carrying Value | |||||||||||||||
Fair value hedge | Fair value hedge | Fair value hedge | Other liabilities | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Interest rate contract | Interest rate contract | Interest rate contract | Interest rate contract | Fair Value Hierarchy, Level 2 | Fair Value Hierarchy, Level 2 | ||||||||||||||||||||||
Forward swap | Forward swap | Forward swap | derivative | derivative | Other assets | Other assets | Other liabilities | Other liabilities | Forward swap | Forward swap | Forward swap | Interest rate contract | Interest rate contract | ||||||||||||||||||||||||||
derivative | derivative | derivative | derivative | derivative | derivative | Designated as hedging instrument | Designated as hedging instrument | ||||||||||||||||||||||||||||||||
Fair value hedge | Fair value hedge | ||||||||||||||||||||||||||||||||||||||
Other liabilities | Other liabilities | ||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Number of derivative instruments qualifying for short-cut hedge treatment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Lower threshold requiring collateral to be posted, liabilities | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Higher threshold requiring collateral to be posted, liabilities | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Number of derivative instruments in liability position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Derivative financial liabilities (interest rate contracts) | 3,085,000 | [1] | 5,240,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | ' | ' | ' | ' | 5,240,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,085,000 | 5,240,000 | 3,085,000 | 5,240,000 | 3,085,000 | ' | |||||
Collateral posted, fair value | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Number of derivative instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 | ' | 10 | ' | ' | ' | ' | 1 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Interest rate contracts notional amount, Asset derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,658,000 | 4,932,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Interest rate contracts notional amount, Liability derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,773,000 | 38,156,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Increase (decrease) in value of designated interest rate swaps recognized in interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 196,000 | 1,956,000 | -217,000 | 2,800,000 | -574,000 | ' | ' | ' | ' | ' | ' | |||||||
Payment on interest rate swaps recorded in interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -358,000 | -359,000 | -339,000 | -1,075,000 | -973,000 | ' | ' | ' | ' | ' | ' | |||||||
(Decrease) increase in value of yield maintenance agreement recognized against interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -245,000 | -2,095,000 | 402,000 | -3,033,000 | 762,000 | ' | ' | ' | ' | ' | ' | |||||||
(Decrease) increase in value of yield maintenance agreement recognized against interst income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,000 | -18,000 | -19,000 | -54,000 | 185,000 | ' | ' | ' | ' | ' | ' | |||||||
Net loss on derivatives recognized against interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -425,000 | [2] | -516,000 | [2] | -173,000 | [2] | -1,362,000 | [2] | -600,000 | [2] | ' | ' | ' | ' | ' | ' | ||
Net hedge ineffectiveness, derivatives | ' | ' | -67,000 | -157,000 | 166,000 | -287,000 | 373,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Accrued interest on interest rate swaps | ' | ' | ' | ' | ' | ' | ' | 69,000 | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Derivative financial assets (interest rate contracts) | $646,000 | [3] | $1,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $646,000 | $1,000 | $646,000 | $1,000 | $646,000 | $1,000 | |||||
[1] | Amounts exclude accrued interest totaling $62 thousand and $74 thousand at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
[2] | Includes hedge ineffectiveness of $(67) thousand, $(157) thousand and $166 thousand for the quarters ended September 30, 2013, June 30, 2013 and September 30, 2012, respectively. Ineffectiveness of $(287) thousand and $373 thousand was recorded in interest income during the nine months ended September 30, 2013 and September 30, 2012, respectively. Changes in value of swaps were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||||||||||||||
[3] | Amounts exclude accrued interest totaling $7 thousand and $1 thousand at September 30, 2013 and December 31, 2012, respectively. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments and Hedging Activities Offsetting of Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Offsetting Assets [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | $646 | [1] | $1 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Assets Presented in the Statements of Condition | 646 | [1] | 1 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | -646 | -1 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 | ||
Net Amount | 0 | 0 | ||
Counterparty A | ' | ' | ||
Offsetting Assets [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | 646 | [1] | 1 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Assets Presented in the Statements of Condition | 646 | [1] | 1 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | -646 | -1 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 | ||
Net Amount | 0 | 0 | ||
Counterparty B | ' | ' | ||
Offsetting Assets [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | 0 | [1] | 0 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Assets Presented in the Statements of Condition | 0 | [1] | 0 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | 0 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 | ||
Net Amount | 0 | 0 | ||
Interest rate swap | ' | ' | ||
Offsetting Assets [Line Items] | ' | ' | ||
Accrued interest on derivative assets | $7 | $1 | ||
[1] | Amounts exclude accrued interest totaling $7 thousand and $1 thousand at September 30, 2013 and December 31, 2012, respectively. |
Derivative_Financial_Instrumen4
Derivative Financial Instruments and Hedging Activities Offsetting of Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Offsetting Liabilities [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | $3,085 | [1] | $5,240 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statements of Condition | 3,085 | [1] | 5,240 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | -646 | -1 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | -1,905 | -4,484 | ||
Net Amount | 534 | 755 | ||
Counterparty A | ' | ' | ||
Offsetting Liabilities [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 1,180 | [1] | 2,616 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statements of Condition | 1,180 | [1] | 2,616 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | -646 | -1 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | 0 | -1,860 | ||
Net Amount | 534 | 755 | ||
Counterparty B | ' | ' | ||
Offsetting Liabilities [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 1,905 | [1] | 2,624 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statements of Condition | 1,905 | [1] | 2,624 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | 0 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | -1,905 | -2,624 | ||
Net Amount | 0 | 0 | ||
Interest rate swap | ' | ' | ||
Offsetting Liabilities [Line Items] | ' | ' | ||
Accrued interest on derivative liabilities | $62 | $74 | ||
[1] | Amounts exclude accrued interest totaling $62 thousand and $74 thousand at September 30, 2013 and December 31, 2012, respectively. |