Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
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-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 5,933,408 |
CONSOLIDATED_STATEMENTS_OF_CON
CONSOLIDATED STATEMENTS OF CONDITION (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $46,424 | $103,773 |
Investment securities | ' | ' |
Held-to-maturity, at amortized cost | 118,843 | 122,495 |
Available-for-sale, at fair value (amortized cost $210,676 and $245,158 at September 30, 2014 and December 31, 2013, respectively) | 211,582 | 243,998 |
Total investment securities | 330,425 | 366,493 |
Loans, net of allowance for loan losses of $15,049 and $14,224 at September 30, 2014 and December 31, 2013, respectively | 1,345,936 | 1,255,098 |
Bank premises and equipment, net | 9,277 | 9,110 |
Goodwill | 6,436 | 6,436 |
Core deposit intangible | 3,925 | 4,503 |
Interest receivable and other assets | 60,234 | 59,781 |
Total assets | 1,802,657 | 1,805,194 |
Deposits | ' | ' |
Non-interest-bearing | 717,720 | 648,191 |
Interest-bearing | ' | ' |
Transaction accounts | 89,891 | 137,748 |
Savings accounts | 127,774 | 118,770 |
Money market accounts | 485,626 | 520,525 |
Time accounts | 150,613 | 161,868 |
Total deposits | 1,571,624 | 1,587,102 |
Federal Home Loan Bank (FHLB) borrowing | 15,000 | 15,000 |
Subordinated debentures | 5,131 | 4,969 |
Interest payable and other liabilities | 15,228 | 17,236 |
Total liabilities | 1,606,983 | 1,624,307 |
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 - 5,930,100 and 5,877,524 at September 30, 2014 and December 31, 2013, respectively | 81,993 | 80,095 |
Retained earnings | 113,115 | 101,464 |
Accumulated other comprehensive income (loss), net | 566 | -672 |
Total stockholders' equity | 195,674 | 180,887 |
Total liabilities and stockholders' equity | $1,802,657 | $1,805,194 |
CONSOLIDATED_STATEMENTS_OF_CON1
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Investment Securities | ' | ' |
Available-for-sale, amortized cost | $210,676 | $245,158 |
Loans, allowance for loan losses | $15,049 | $14,224 |
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) | 5,930,100 | 5,877,524 |
Common stock, outstanding (in shares) | 5,930,100 | 5,877,524 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest income | ' | ' | ' | ' |
Interest and fees on loans | $16,195 | $13,049 | $48,877 | $40,050 |
Interest on investment securities | ' | ' | ' | ' |
Securities of U.S. government agencies | 1,126 | 553 | 3,551 | 1,763 |
Obligations of state and political subdivisions | 496 | 524 | 1,737 | 1,599 |
Corporate debt securities and other | 254 | 311 | 778 | 974 |
Interest due from banks and other | 37 | 34 | 125 | 45 |
Total interest income | 18,108 | 14,471 | 55,068 | 44,431 |
Interest expense | ' | ' | ' | ' |
Interest on interest-bearing transaction accounts | 25 | 12 | 74 | 35 |
Interest on savings accounts | 12 | 9 | 34 | 25 |
Interest on money market accounts | 126 | 101 | 415 | 295 |
Interest on time accounts | 229 | 227 | 695 | 690 |
Interest on FHLB and overnight borrowings | 79 | 80 | 235 | 243 |
Interest on subordinated debentures | 106 | 0 | 316 | 0 |
Total interest expense | 577 | 429 | 1,769 | 1,288 |
Net interest income | 17,531 | 14,042 | 53,299 | 43,143 |
Provision for loan losses | 0 | -480 | 750 | 390 |
Net interest income after provision for loan losses | 17,531 | 14,522 | 52,549 | 42,753 |
Non-interest income | ' | ' | ' | ' |
Service charges on deposit accounts | 552 | 509 | 1,636 | 1,545 |
Wealth Management and Trust Services | 567 | 532 | 1,744 | 1,618 |
Debit card interchange fees | 375 | 288 | 1,035 | 820 |
Merchant interchange fees | 224 | 196 | 629 | 623 |
Earnings on Bank-owned life insurance | 208 | 179 | 632 | 766 |
Gain on sale of securities | 4 | -35 | 93 | -35 |
Other income | 371 | 284 | 1,116 | 666 |
Total non-interest income | 2,301 | 1,953 | 6,885 | 6,003 |
Non-interest expense | ' | ' | ' | ' |
Salaries and related benefits | 6,108 | 5,389 | 19,270 | 16,117 |
Occupancy and equipment | 1,381 | 1,040 | 4,044 | 3,165 |
Depreciation and amortization | 383 | 343 | 1,202 | 1,032 |
Federal Deposit Insurance Corporation insurance | 261 | 244 | 780 | 681 |
Data processing | 748 | 612 | 2,856 | 1,857 |
Professional services | 537 | 775 | 1,577 | 2,116 |
Other expense | 1,932 | 1,704 | 5,921 | 5,253 |
Total non-interest expense | 11,350 | 10,107 | 35,650 | 30,221 |
Income before provision for income taxes | 8,482 | 6,368 | 23,784 | 18,535 |
Provision for income taxes | 3,104 | 2,364 | 8,705 | 6,610 |
Net income | 5,378 | 4,004 | 15,079 | 11,925 |
Net income per common share: | ' | ' | ' | ' |
Basic (usd per share) | $0.91 | $0.74 | $2.56 | $2.20 |
Diluted (usd per share) | $0.89 | $0.72 | $2.51 | $2.16 |
Weighted average shares used to compute net income per common share: | ' | ' | ' | ' |
Basic (shares) | 5,903 | 5,433 | 5,887 | 5,414 |
Diluted (shares) | 6,014 | 5,538 | 5,996 | 5,511 |
Dividends declared per common share (usd per share) | $0.20 | $0.18 | $0.58 | $0.54 |
Comprehensive income: | ' | ' | ' | ' |
Net income | 5,378 | 4,004 | 15,079 | 11,925 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Change in net unrealized (loss) gain on available-for-sale securities | -344 | -621 | 2,047 | -2,591 |
Reclassification adjustment for loss on sale of available-for-sale securities included in net income | 4 | 35 | 19 | 35 |
Net change in unrealized (loss) gain on available-for-sale securities, before tax | -340 | -586 | 2,066 | -2,556 |
Deferred tax (benefit) expense | -141 | -246 | 828 | -1,073 |
Other comprehensive (loss) income, net of tax | -199 | -340 | 1,238 | -1,483 |
Comprehensive income | $5,179 | $3,664 | $16,317 | $10,442 |
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, 2012 | $151,792 | $58,573 | $91,164 | $2,055 |
Balance (in shares) at Dec. 31, 2012 | ' | 5,389,210 | ' | ' |
Net income | 14,270 | 0 | 14,270 | 0 |
Other comprehensive income (loss) | -2,727 | 0 | 0 | -2,727 |
Stock options exercised (in shares) | ' | 71,237 | ' | ' |
Stock options exercised | 2,218 | 2,218 | 0 | 0 |
Excess tax benefit - stock-based compensation | 125 | 125 | 0 | 0 |
Stock issued under employee stock purchase plan (in shares) | ' | 870 | ' | ' |
Stock issued under employee stock purchase plan | 34 | 34 | 0 | 0 |
Restricted stock granted (in shares) | ' | 11,850 | ' | ' |
Restricted stock granted | 0 | 0 | 0 | 0 |
Restricted stock forfeited/cancelled (in shares) | ' | -3,998 | ' | ' |
Restricted stock forfeited/cancelled | 0 | 0 | 0 | 0 |
Stock-based compensation - stock options | 175 | 175 | 0 | 0 |
Stock-based compensation - restricted stock | 228 | 228 | 0 | 0 |
Cash dividends paid on common stock | -3,970 | 0 | -3,970 | 0 |
Stock purchased by directors under director stock plan (in shares) | ' | 160 | ' | ' |
Stock purchased by directors under director stock plan | 6 | 6 | ' | ' |
Stock issued in payment of director fees (in shares) | ' | 5,619 | ' | ' |
Stock issued in payment of director fees | 222 | 222 | 0 | 0 |
Stock issued to NorCal Community Bancorp shareholders (in shares) | ' | 402,576 | ' | ' |
Stock issued to NorCal Community Bancorp shareholders | 18,514 | 18,514 | 0 | 0 |
Balance at Dec. 31, 2013 | 180,887 | 80,095 | 101,464 | -672 |
Balance (in shares) at Dec. 31, 2013 | 5,877,524 | 5,877,524 | ' | ' |
Net income | 15,079 | 0 | 15,079 | 0 |
Other comprehensive income (loss) | 1,238 | 0 | 0 | 1,238 |
Stock options exercised (in shares) | ' | 40,123 | ' | ' |
Stock options exercised | 1,146 | 1,146 | 0 | 0 |
Excess tax benefit - stock-based compensation | 149 | 149 | 0 | 0 |
Stock issued under employee stock purchase plan (in shares) | ' | 431 | ' | ' |
Stock issued under employee stock purchase plan | 19 | 19 | 0 | 0 |
Restricted stock granted (in shares) | ' | 8,523 | ' | ' |
Restricted stock granted | 0 | 0 | 0 | 0 |
Restricted stock forfeited/cancelled (in shares) | ' | -2,067 | ' | ' |
Restricted stock forfeited/cancelled | 0 | 0 | 0 | 0 |
Stock-based compensation - stock options | 153 | 153 | 0 | 0 |
Stock-based compensation - restricted stock | 183 | 183 | 0 | 0 |
Cash dividends paid on common stock | -3,428 | 0 | -3,428 | 0 |
Stock purchased by directors under director stock plan (in shares) | ' | 260 | ' | ' |
Stock purchased by directors under director stock plan | 12 | 12 | 0 | 0 |
Stock issued in payment of director fees (in shares) | ' | 5,306 | ' | ' |
Stock issued in payment of director fees | 236 | 236 | 0 | 0 |
Balance at Sep. 30, 2014 | $195,674 | $81,993 | $113,115 | $566 |
Balance (in shares) at Sep. 30, 2014 | 5,930,100 | 5,930,100 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income | $15,079 | $11,925 | $14,270 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for loan losses | 750 | 390 | ' |
Compensation expense--common stock for director fees | 170 | 166 | ' |
Stock-based compensation expense | 336 | 309 | ' |
Excess tax benefits from exercised stock options | -104 | -86 | ' |
Amortization of core deposit intangible | 578 | 0 | ' |
Amortization of investment security premiums, net of accretion of discounts | 1,982 | 2,401 | ' |
Accretion of discount on acquired loans | -3,311 | -1,137 | ' |
Accretion of discount on subordinated debentures | 162 | 0 | ' |
Net amortization of deferred loan origination costs/fees | -382 | -662 | ' |
(Gain) loss on sale of investment securities | -93 | 35 | ' |
Depreciation and amortization | 1,202 | 1,032 | ' |
Gain on sale of repossessed assets | 0 | -43 | ' |
Earnings on bank owned life insurance policies | -632 | -766 | ' |
Net change in operating assets and liabilities: | ' | ' | ' |
Interest receivable | 122 | 408 | ' |
Interest payable | -44 | -32 | ' |
Deferred rent and other rent-related expenses | 165 | 50 | ' |
Other assets | -44 | -2,276 | ' |
Other liabilities | -1,849 | 2,926 | ' |
Total adjustments | -992 | 2,715 | ' |
Net cash provided by operating activities | 14,087 | 14,640 | ' |
Cash Flows from Investing Activities: | ' | ' | ' |
Purchase of available-for-sale securities | -16,353 | 0 | ' |
Proceeds from sale of available-for-sale securities | 2,435 | 2,220 | ' |
Proceeds from sale of held-to-maturity securities | 2,146 | 0 | ' |
Proceeds from paydowns/maturity of held-to-maturity securities | 14,738 | 7,815 | ' |
Proceeds from paydowns/maturity of available-for-sale securities | 33,320 | 28,963 | ' |
Loans originated and principal collected, net | -88,028 | -20,375 | ' |
Purchase of FHLB stock | 492 | 0 | ' |
Purchase of premises and equipment | -1,369 | -635 | ' |
Proceeds from sale of repossessed assets | 0 | 270 | ' |
Cash paid for low income housing tax credit investment | -208 | 0 | ' |
Net cash (used in) provided by investing activities | -53,811 | 18,258 | ' |
Cash Flows from Financing Activities: | ' | ' | ' |
Net (decrease) increase in deposits | -15,478 | 39,187 | ' |
Proceeds from stock options exercised | 1,146 | 1,736 | ' |
Stock issued under employee and director stock purchase plans | 0 | 34 | ' |
Proceeds from stock issued under employee and director stock purchase plans | 31 | 0 | ' |
Cash dividends paid on common stock | -3,428 | -2,932 | ' |
Excess tax benefits from exercised stock options | 104 | 86 | ' |
Net cash (used in) provided by financing activities | -17,625 | 38,111 | ' |
Net (decrease) increase in cash and cash equivalents | -57,349 | 71,009 | ' |
Cash and cash equivalents at beginning of period | 103,773 | 28,349 | 28,349 |
Cash and cash equivalents at end of period | 46,424 | 99,358 | 103,773 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for interest | 1,660 | 1,320 | ' |
Cash paid for income taxes | 7,165 | 7,889 | ' |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' | ' |
Change in unrealized gain on available-for-sale securities | -2,066 | -2,556 | ' |
Securities transferred from available-for-sale to held-to-maturity | 14,297 | 0 | ' |
Subscription in low income housing tax credit investment | 1,000 | 1,000 | ' |
Stock issued in payment of director fees | $236 | $222 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
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. | |||||||||||||
On November 29, 2013, we completed the merger of NorCal Community Bancorp ("NorCal"), parent company of Bank of Alameda, to enhance our market presence (the “Acquisition”). On the date of acquisition, Bancorp assumed ownership of NorCal Community Bancorp Trusts I and II, respectively (the "Trusts"), which were formed for the sole purpose of issuing trust preferred securities. Bancorp is not considered the primary beneficiary of the Trusts (variable interest entities), therefore the Trusts are not consolidated in our consolidated financial statements, but rather the subordinated debentures are shown as a liability on our consolidated statements of condition. Bancorp's investment in the common stock of the Trusts is accounted for under the equity method and is included in interest receivable and other assets on the consolidated statements of condition. | |||||||||||||
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 2013 Annual Report on Form 10-K. The results of operations for the three months and nine months ended September 30, 2014 are not necessarily indicative of the operating results for the full year. | |||||||||||||
The following table shows: 1) weighted average basic shares, 2) potentially diluted 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 potentially diluted 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 potentially diluted common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially diluted 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 | ||||||||||||
(shares and dollars in thousands; except per share data; unaudited) | September 30, 2014 | September 30, 2013 | 30-Sep-14 | 30-Sep-13 | |||||||||
Weighted average basic shares outstanding | 5,903 | 5,433 | 5,887 | 5,414 | |||||||||
Potentially diluted common shares related to stock options | 41 | 46 | 42 | 43 | |||||||||
Potentially diluted common shares related to unvested restricted stock | 4 | 4 | 4 | 4 | |||||||||
Potentially diluted common shares related to the warrant | 66 | 55 | 63 | 50 | |||||||||
Weighted average diluted shares outstanding | 6,014 | 5,538 | 5,996 | 5,511 | |||||||||
Net income | $ | 5,378 | $ | 4,004 | $ | 15,079 | $ | 11,925 | |||||
Basic EPS | $ | 0.91 | $ | 0.74 | $ | 2.56 | $ | 2.2 | |||||
Diluted EPS | $ | 0.89 | $ | 0.72 | $ | 2.51 | $ | 2.16 | |||||
Weighted average anti-dilutive shares not included in the calculation of diluted EPS | 51 | 51 | 48 | 48 | |||||||||
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
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 Fed 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. This ASU did not 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 an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss ("NOL") carryforward, or similar tax loss or tax credit carryforward, rather than as a liability, when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to and is able to use the deferred tax asset for that purpose. Otherwise, the unrecognized tax benefit should be presented as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective prospectively for fiscal years, and interim periods beginning after December 15, 2013 for public entities. We adopted this ASU in the first quarter of 2014 and the adoption did not have an impact on our financial condition or results of operations. | |
In January 2014, the FASB issued ASU No. 2014-01, Investments - Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Qualified Affordable Housing Projects. This ASU permits entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the income statement as part of income tax expense (benefit). We adopted this ASU in the first quarter of 2014 and elected to account for all low income housing investments using the proportional amortization method instead of cost method. The change in accounting policy did not have a significant impact on our financial condition or results of operations. | |
In January 2014, the FASB issued ASU No. 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. Current accounting literature on troubled debt restructurings include guidance on when a creditor obtains one or more collateral assets in satisfaction of all or part of the receivable. The accounting literature indicates that a creditor should reclassify a collateralized mortgage loan such that the loan should be de-recognized and the collateral asset recognized when it is determined that there has been in substance a repossession or foreclosure by the creditor. However, in substance repossession or foreclosure and physical possession are not currently defined and there is diversity about when a creditor should de-recognize the loan receivable and recognize the real estate property. This ASU clarifies when an in substance repossession or foreclosure occurs. ASU 2014-04 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014 for public entities. We do not expect this ASU to have a significant impact on our financial condition or results of operations. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) effective on a retrospective basis for annual reporting periods beginning after December 15, 2016. Since this ASU does not apply to financial instruments, we do not expect this ASU to have a significant impact on our financial condition or results of operations. | |
In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860) Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. This ASU changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. This ASU is effective for the first interim or annual period beginning after December 15, 2014. Since we currently do not enter into repurchase agreements, we do not expect this ASU to have a significant impact on our financial condition or results of operations. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU provides guidance for entities that grant their employees share-based payment awards where a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. This ASU stipulates that compensation expense should be recognized in the period where the performance target becomes probable of being achieved as opposed to the date that the award was granted. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. We do not expect this ASU to have a significant impact on our financial condition or results of operations, as we currently do not grant share-based payment awards where a performance target that affects vesting could be achieved after the requisite service period. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Acquisition | ' |
Acquisition | |
On November 29, 2013, we completed the merger of NorCal, parent company of Bank of Alameda, to enhance our market presence. The merger added $173.8 million in loans, $241.0 million in deposits and $53.7 million in investment securities to Bank of Marin as well as four branch offices serving Alameda, Emeryville, and Oakland in California. Effective October 31, 2014, the Emeryville branch was closed after Management determined that our customers and the business community can be easily supported from our Oakland location. The assets acquired and liabilities assumed, both tangible and intangible, were recorded at their fair values as of the acquisition date in accordance with ASC 805, Business Combinations. We have up to a year from the acquisition date to obtain additional information that existed at the acquisition date and affected the identification and measurement of assets acquired and liabilities assumed. As of September 30, 2014, there have been no additional information nor significant changes in the acquisition-date fair value of assets acquired or liabilities assumed. The acquisition was treated as a "reorganization" within the definition of section 368(a) of the Internal Revenue Code and is generally considered tax-free for U.S. federal income tax purposes. | |
As a result of the Acquisition, we recorded $6.4 million in goodwill, which represents the excess of the total purchase price paid over the fair value of the assets acquired, net of the fair values of liabilities assumed. Goodwill mainly reflects expected value created through the combined operations of Bank of Alameda and Bank of Marin and our expanded footprint in the East Bay. It is evaluated for impairment annually. We determined that the fair value of our traditional community banking activities (provided through our branch network) exceeded its carrying amount. Therefore, no impairment on goodwill has been recorded. The goodwill is not deductible for tax purposes. | |
Core deposit intangible represents estimated future benefits of acquired deposits and is booked separately from the related deposits. We recorded a core deposit intangible asset of $4.6 million on November 29, 2013, of which $69 thousand was amortized in 2013 and $578 thousand was amortized in the first nine months of 2014. It is amortized on an accelerated basis over an estimated ten-year life. The core deposit intangible asset is evaluated periodically for impairment, and no impairment loss was recognized as of September 30, 2014. |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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. | |||||||||||||||||
Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with our monthly and/or quarterly valuation process. | |||||||||||||||||
The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis. | |||||||||||||||||
(dollars 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, 2014 (unaudited): | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 169,903 | $ | — | $ | 167,160 | $ | 2,743 | |||||||||
Debentures of government-sponsored agencies | $ | 14,552 | $ | — | $ | 14,552 | $ | — | |||||||||
Privately-issued collateralized mortgage obligations | $ | 7,843 | $ | — | $ | 7,843 | $ | — | |||||||||
Obligations of state and political subdivisions | $ | 14,271 | $ | — | $ | 14,271 | $ | — | |||||||||
Corporate bonds | $ | 5,013 | $ | — | 5,013 | $ | — | ||||||||||
Derivative financial assets (interest rate contracts) | $ | 313 | $ | — | $ | 313 | $ | — | |||||||||
Derivative financial liabilities (interest rate contracts) | $ | 1,537 | $ | — | $ | 1,537 | $ | — | |||||||||
At December 31, 2013: | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 190,604 | $ | — | $ | 190,604 | $ | — | |||||||||
Debentures of government-sponsored agencies | $ | 21,312 | $ | — | $ | 21,312 | $ | — | |||||||||
Privately-issued collateralized mortgage obligations | $ | 10,874 | $ | — | $ | 10,874 | $ | — | |||||||||
Obligations of state and political subdivisions | $ | 15,771 | $ | — | $ | 15,771 | $ | — | |||||||||
Corporate bonds | $ | 5,437 | $ | — | $ | 5,437 | $ | — | |||||||||
Derivative financial assets (interest rate contracts) | $ | 961 | $ | — | $ | 961 | $ | — | |||||||||
Derivative financial liabilities (interest rate contracts) | $ | 2,519 | $ | — | $ | 2,519 | $ | — | |||||||||
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, 2014 and December 31, 2013, there are no securities that are considered Level 1 securities. As of September 30, 2014, we have one available-for-sale security that is considered Level 3 security. The security is a U.S. government agency obligation collateralized by a small pool of business equipment loans guaranteed by the Small Business Administration program. This security is not actively traded and is owned only by a few investors. The significant unobservable data that is reflected in the fair value measurement include dealer quotes, projected prepayment speeds/average life and credit information, among other things. It was transferred to Level 3 security during the second quarter of 2014 and the decrease in unrealized gain during the third quarter is $8 thousand. | |||||||||||||||||
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 and OIS rates (for the very short term), quoted prices for LIBOR futures contracts, observable market prices for LIBOR and OIS 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. We project spot rates at reset days specified by each swap to determine future cash flows, then discount to present value using either LIBOR or OIS curves depending on the collateral posted as of the measurement date. When the value of any collateral placed with counterparties is less than the interest rate derivative liability, an additional discount is applied to reflect our potential credit risk to counterparties. We have used the spread between the Standard & Poor's BBB rated U.S. Bank Composite rate and LIBOR for the closest maturity term corresponding to the duration of the swaps to derive the credit-risk-related component of the discount rate of future cash flows from the collateral shortfall. | |||||||||||||||||
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, 2014 and December 31, 2013. | |||||||||||||||||
(dollars 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, 2014 (unaudited): | |||||||||||||||||
Impaired loans carried at fair value: | |||||||||||||||||
Installment and other consumer | 64 | — | — | 64 | |||||||||||||
Total | $ | 64 | $ | — | $ | — | $ | 64 | |||||||||
At December 31, 2013: | |||||||||||||||||
Impaired loans carried at fair value: | |||||||||||||||||
Construction | 3,037 | — | — | 3,037 | |||||||||||||
Installment and other consumer | 35 | — | — | 35 | |||||||||||||
Total | $ | 3,072 | $ | — | $ | — | $ | 3,072 | |||||||||
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 $15 thousand and $363 thousand at September 30, 2014 and December 31, 2013, respectively. The carrying value of loans fully charged-off, which includes unsecured lines of credit, overdrafts and all other loans, is zero. | |||||||||||||||||
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 impaired loans and other real estate owned ("OREO"). | |||||||||||||||||
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 quarter and nine-month period ended September 30, 2014. | |||||||||||||||||
OREO represents collateral acquired through foreclosure and is initially recorded at fair value as established by a current appraisal, adjusted for disposition costs. Subsequently, OREO is measured at lower of cost or fair value. OREO values are reviewed on an ongoing basis and any subsequent decline in fair value is recorded as a foreclosed asset expense in the current period. The value of OREO is determined based on independent appraisals, similar to the process used for impaired loans, discussed above, and is generally classified as Level 3. At September 30, 2014 and December 31, 2013, we had $461 thousand of OREO acquired from Bank of Alameda as part of the Acquisition. There was no change in the estimated fair value of the OREO from the date of the Acquisition through September 30, 2014. | |||||||||||||||||
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. | |||||||||||||||||
Disclosures about Fair Value of Financial Instruments | |||||||||||||||||
The table below is a summary of fair value estimates for financial instruments as of September 30, 2014 and December 31, 2013, 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, 2014 | December 31, 2013 | ||||||||||||||||
(dollars in thousands; 2014 unaudited) | Carrying Amounts | Fair Value | Fair Value Hierarchy | Carrying Amounts | Fair Value | Fair Value Hierarchy | |||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 46,424 | $ | 46,424 | Level 1 | $ | 103,773 | $ | 103,773 | Level 1 | |||||||
Investment securities held-to-maturity | 118,843 | 121,177 | Level 2 | 122,495 | 123,858 | Level 2 | |||||||||||
Loans, net | 1,345,936 | 1,361,745 | Level 3 | 1,255,098 | 1,245,475 | Level 3 | |||||||||||
Interest receivable | 5,645 | 5,645 | Level 2 | 5,767 | 5,767 | Level 2 | |||||||||||
Financial liabilities | |||||||||||||||||
Deposits | 1,571,624 | 1,572,582 | Level 2 | 1,587,102 | 1,588,278 | Level 2 | |||||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,501 | Level 2 | 15,000 | 15,665 | Level 2 | |||||||||||
Subordinated debentures | 5,131 | 5,187 | Level 3 | 4,969 | 4,950 | Level 3 | |||||||||||
Interest payable | 209 | 209 | Level 2 | 253 | 253 | 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 mortgage-backed securities, 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, 2014 and December 31, 2013, we did not hold any held-to-maturity securities whose fair value was measured using significant unobservable inputs. | |||||||||||||||||
Loans - The fair value of loans with variable interest rates approximates current carrying value, because loan 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 the portion of loan discount attributable 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. | |||||||||||||||||
Subordinated Debentures - As part of the Acquisition, we assumed two tranches of subordinated debentures from NorCal. See Note 7 for further information. The fair values of the subordinated debentures were estimated by discounting the future cash flows (interest payment at a rate of three-month LIBOR plus 3.05% and 1.40%, respectively) to their present values using current market rates at which similar bonds would be issued with similar credit ratings as ours and similar remaining maturities. Each future quarterly interest payment was discounted at the spot rate for the corresponding term based on comparable trust preferred securities, plus an illiquidity premium of 3.00%. In July 2010, the Dodd-Frank Act was signed into law and limits the ability of certain bank holding companies to treat trust preferred security debt issuances as Tier 1 capital. This law effectively closed the trust-preferred securities markets for new issuance and led to the absence of observable or comparable transactions in the market place. Due to the use of unobservable inputs in the valuation of trust preferred securities, we consider the fair value to be a Level 3 measurement. | |||||||||||||||||
Commitments - Loan commitments and standby letters of credit generate ongoing fees, which are recognized over the term of the commitment period. Given the uncertainty in the likelihood and timing of a commitment being drawn upon, the carrying value of the related unamortized commitment fees and the reserve for these off-balance sheet commitments are determined to approximate fair value, which is not material. |
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
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-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Amortized | Fair | Gross Unrealized | Amortized | Fair | Gross Unrealized | |||||||||||||||||||||||||||
(dollars in thousands; 2014 unaudited) | Cost | Value | Gains | (Losses) | Cost | Value | Gains | (Losses) | ||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Obligations of state and | $ | 65,089 | $ | 66,943 | $ | 1,935 | $ | (81 | ) | $ | 80,381 | $ | 81,429 | $ | 1,764 | $ | (716 | ) | ||||||||||||||
political subdivisions | ||||||||||||||||||||||||||||||||
Corporate bonds | 40,363 | 40,691 | 340 | (12 | ) | 42,114 | 42,429 | 375 | (60 | ) | ||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | 13,391 | 13,543 | 152 | — | — | — | — | — | ||||||||||||||||||||||||
Total held-to-maturity | 118,843 | 121,177 | 2,427 | (93 | ) | 122,495 | 123,858 | 2,139 | (776 | ) | ||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
Securities of U.S. government agencies: | ||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | 100,978 | 101,345 | 555 | (188 | ) | 124,063 | 123,033 | 616 | (1,646 | ) | ||||||||||||||||||||||
CMOs issued by FNMA | 15,608 | 15,600 | 65 | (73 | ) | 18,573 | 18,438 | 60 | (195 | ) | ||||||||||||||||||||||
CMOs issued by FHLMC | 33,288 | 33,243 | 96 | (141 | ) | 23,710 | 23,679 | 144 | (175 | ) | ||||||||||||||||||||||
CMOs issued by GNMA | 19,359 | 19,715 | 364 | (8 | ) | 24,944 | 25,454 | 609 | (99 | ) | ||||||||||||||||||||||
Debentures of government- sponsored agencies | 14,727 | 14,552 | 111 | (286 | ) | 21,845 | 21,312 | 108 | (641 | ) | ||||||||||||||||||||||
Privately issued CMOs | 7,627 | 7,843 | 220 | (4 | ) | 10,649 | 10,874 | 257 | (32 | ) | ||||||||||||||||||||||
Obligations of state and | 14,156 | 14,271 | 137 | (22 | ) | 15,948 | 15,771 | 14 | (191 | ) | ||||||||||||||||||||||
political subdivisions | ||||||||||||||||||||||||||||||||
Corporate bonds | 4,933 | 5,013 | 83 | (3 | ) | 5,426 | 5,437 | 25 | (14 | ) | ||||||||||||||||||||||
Total available-for-sale | 210,676 | 211,582 | 1,631 | (725 | ) | 245,158 | 243,998 | 1,833 | (2,993 | ) | ||||||||||||||||||||||
Total investment securities | $ | 329,519 | $ | 332,759 | $ | 4,058 | $ | (818 | ) | $ | 367,653 | $ | 367,856 | $ | 3,972 | $ | (3,769 | ) | ||||||||||||||
As part of our ongoing review of our investment securities portfolio, we reassessed the classification of certain MBS pass-through securities issued by FHLMC and FNMA that are qualified for Community Reinvestment Act ("CRA") credit. Effective January 31, 2014, we transferred $14.2 million of these CRA qualified MBS, which we intend and have the ability to hold to maturity, from available-for-sale securities to held-to-maturity at fair value. The unrealized pre-tax holding gain of $84 thousand at the date of transfer remained in accumulated other comprehensive income and is amortized over the remaining lives of the securities as an adjustment to yield. | ||||||||||||||||||||||||||||||||
The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2014 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, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | Held-to-Maturity | Available-for-Sale | |||||||||||||||||||||||||||||
(dollars in thousands; 2014 unaudited) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||
Within one year | $ | 25,111 | $ | 25,272 | $ | 2,377 | $ | 2,389 | $ | 8,731 | $ | 8,784 | $ | 5,522 | $ | 5,521 | ||||||||||||||||
After one year but within five years | 63,192 | 64,436 | 39,599 | 39,793 | 88,255 | 89,095 | 42,229 | 42,338 | ||||||||||||||||||||||||
After five years through ten years | 15,900 | 16,669 | 19,241 | 19,031 | 24,244 | 24,786 | 26,232 | 25,478 | ||||||||||||||||||||||||
After ten years | 14,640 | 14,800 | 149,459 | 150,369 | 1,265 | 1,193 | 171,175 | 170,661 | ||||||||||||||||||||||||
Total | $ | 118,843 | $ | 121,177 | $ | 210,676 | $ | 211,582 | $ | 122,495 | $ | 123,858 | $ | 245,158 | $ | 243,998 | ||||||||||||||||
We sold two available-for-sale and six held-to-maturity securities in the first nine months of 2014 with total proceeds of $2.4 million and $2.1 million, respectively, and incurred a loss of $11 thousand and a net gain of $104 thousand, respectively. The sales of the held-to-maturity securities were due to evidence of significant deterioration in issuer creditworthiness since purchase. Two available-for-sale securities were sold in January 2013 with proceeds of $1.1 million and a small net gain of $339. | ||||||||||||||||||||||||||||||||
Investment securities carried at $67.4 million and $61.8 million at September 30, 2014 and December 31, 2013, respectively, were pledged to the State of California: $66.5 million and $61.1 million to secure public deposits in compliance with the Local Agency Security Program at September 30, 2014 and December 31, 2013, respectively, and $860 thousand and $732 thousand to provide collateral for trust deposits at September 30, 2014 and December 31, 2013, 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, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
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. We do not have the intent, and it is more likely than not that we will not have to sell securities temporarily impaired at September 30, 2014 before recovery of the cost basis. | ||||||||||||||||||||||||||||||||
Twenty-eight and ninety-five investment securities were in unrealized loss positions at September 30, 2014 and December 31, 2013, respectively. Those securities are summarized and classified according to the duration of the loss period in the table below: | ||||||||||||||||||||||||||||||||
September 30, 2014 | < 12 continuous months | > 12 continuous months | Total securities | |||||||||||||||||||||||||||||
in a loss position | ||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Obligations of state & political subdivisions | $ | 5,636 | $ | (27 | ) | 4,280 | (54 | ) | $ | 9,916 | $ | (81 | ) | |||||||||||||||||||
Corporate bonds | — | — | 3,550 | (12 | ) | 3,550 | (12 | ) | ||||||||||||||||||||||||
Total held-to-maturity | 5,636 | (27 | ) | 7,830 | (66 | ) | 13,466 | (93 | ) | |||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 20,670 | (188 | ) | — | — | 20,670 | (188 | ) | ||||||||||||||||||||||||
CMOs issued by FNMA | 4,346 | (73 | ) | — | — | 4,346 | (73 | ) | ||||||||||||||||||||||||
CMOs issued by FHLMC | 23,886 | (141 | ) | — | — | 23,886 | (141 | ) | ||||||||||||||||||||||||
CMOs issued by GNMA | 3,474 | (8 | ) | — | — | 3,474 | (8 | ) | ||||||||||||||||||||||||
Debentures of government- sponsored agencies | 493 | (2 | ) | 9,717 | (284 | ) | 10,210 | (286 | ) | |||||||||||||||||||||||
Privately issued CMOs | 318 | (4 | ) | — | — | 318 | (4 | ) | ||||||||||||||||||||||||
Obligations of state & political subdivisions | 2,804 | (22 | ) | — | — | 2,804 | (22 | ) | ||||||||||||||||||||||||
Corporate bonds | 989 | (3 | ) | — | — | 989 | (3 | ) | ||||||||||||||||||||||||
Total available-for-sale | 56,980 | (441 | ) | 9,717 | (284 | ) | 66,697 | (725 | ) | |||||||||||||||||||||||
Total temporarily impaired securities | $ | 62,616 | $ | (468 | ) | $ | 17,547 | $ | (350 | ) | $ | 80,163 | $ | (818 | ) | |||||||||||||||||
31-Dec-13 | < 12 continuous months | > 12 continuous months | Total securities | |||||||||||||||||||||||||||||
in a loss position | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Obligations of state & political subdivisions | $ | 13,933 | $ | (419 | ) | $ | 9,033 | $ | (297 | ) | $ | 22,966 | $ | (716 | ) | |||||||||||||||||
Corporate bonds | 3,017 | (11 | ) | 4,963 | (49 | ) | 7,980 | (60 | ) | |||||||||||||||||||||||
Total held-to-maturity | 16,950 | (430 | ) | 13,996 | (346 | ) | 30,946 | (776 | ) | |||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 90,914 | (1,297 | ) | 3,172 | (349 | ) | 94,086 | (1,646 | ) | |||||||||||||||||||||||
CMOs issued by FNMA | 17,535 | (195 | ) | — | — | 17,535 | (195 | ) | ||||||||||||||||||||||||
CMOs issued by FHLMC | 17,899 | (175 | ) | — | — | 17,899 | (175 | ) | ||||||||||||||||||||||||
CMOs issued by GNMA | 3,966 | (99 | ) | — | — | 3,966 | (99 | ) | ||||||||||||||||||||||||
Debentures of government- sponsored agencies | 16,872 | (641 | ) | — | — | 16,872 | (641 | ) | ||||||||||||||||||||||||
Privately issued CMOs | 4,634 | (31 | ) | 159 | (1 | ) | 4,793 | (32 | ) | |||||||||||||||||||||||
Obligations of state & political subdivisions | 11,516 | (191 | ) | — | — | 11,516 | (191 | ) | ||||||||||||||||||||||||
Corporate bonds | 1,479 | (14 | ) | — | — | 1,479 | (14 | ) | ||||||||||||||||||||||||
Total available-for-sale | 164,815 | (2,643 | ) | 3,331 | (350 | ) | 168,146 | (2,993 | ) | |||||||||||||||||||||||
Total temporarily impaired securities | $ | 181,765 | $ | (3,073 | ) | $ | 17,327 | $ | (696 | ) | $ | 199,092 | $ | (3,769 | ) | |||||||||||||||||
As of September 30, 2014, there were five investment positions that had been in a continuous loss position for more than twelve months. These securities consisted of a debenture of government-sponsored agency, obligations of U.S. state and political subdivisions, and a corporate bond. We have evaluated each of the bonds and believe that the decline in fair value is primarily driven by factors other than credit. It is probable that we will be able to collect all amounts due according to the contractual terms and no other-than-temporary impairment exists. MBS are supported by the U.S. Federal government to protect us from credit losses. Additionally, the obligations of state and political subdivisions and corporate bonds were deemed creditworthy based on our review of the issuers' recent financial information and their insurers, if any. Based upon our assessment of expected credit losses 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, 2014. | ||||||||||||||||||||||||||||||||
Twenty-three investment securities in our portfolio were in a temporary loss position for less than twelve months as of September 30, 2014. They consisted of a debenture issued by government agency, MBS, obligations of U.S. state and political subdivisions, and a corporate bond. 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 creditworthy after our internal analysis. Additionally, all are rated as investment grade by at least one major rating agency. As a result of this impairment analysis, we concluded that these securities were not other-than-temporarily impaired at September 30, 2014. | ||||||||||||||||||||||||||||||||
Non-Marketable Securities | ||||||||||||||||||||||||||||||||
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 borrowings 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 $8.2 million and $7.8 million of FHLB stock recorded at cost in other assets on the consolidated statements of condition at September 30, 2014 and December 31, 2013, respectively. The carrying amounts of these investments are reasonable estimates of fair value because the securities are restricted to member banks and they do not have a readily determinable market value. 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. On October 29, 2014, the FHLB announced a cash dividend for the third quarter of 2014 at an annualized dividend rate of 7.4% to be distributed in mid-November. | ||||||||||||||||||||||||||||||||
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. Converting this Class B common stock to Class A common stock at a conversion rate of 0.4206, the value would be $1.5 million and $1.6 million at September 30, 2014 and December 31, 2013, 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. | ||||||||||||||||||||||||||||||||
We invest in low income housing tax credit funds as a limited partner, which totaled $1.8 million and $1.0 million as of September 30, 2014 and December 31, 2013, respectively. Starting 2014, we have elected to account for all low income housing investments using the proportional amortization method instead of cost method and recognized $40 thousand of low income housing tax credit as a component of income tax benefit for the nine months ended September 30, 2014 . |
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||
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, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||||||||||||||
Loan Aging Analysis by Class as of September 30, 2014 and December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2014 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-14 | |||||||||||||||||||||||||||||||||||||
30-59 days past due | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 279 | $ | 282 | |||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | 17 | 17 | |||||||||||||||||||||||||||||
Greater than 90 days past due (non-accrual) 2 | 193 | 1,403 | 2,505 | 5,173 | 436 | — | 128 | 9,838 | |||||||||||||||||||||||||||||
Total past due | 196 | 1,403 | 2,505 | 5,173 | 436 | — | 424 | 10,137 | |||||||||||||||||||||||||||||
Current | 201,320 | 233,090 | 671,923 | 40,775 | 109,219 | 75,992 | 18,529 | 1,350,848 | |||||||||||||||||||||||||||||
Total loans 3 | $ | 201,516 | $ | 234,493 | $ | 674,428 | $ | 45,948 | $ | 109,655 | $ | 75,992 | $ | 18,953 | $ | 1,360,985 | |||||||||||||||||||||
Non-accrual loans to total loans | 0.1 | % | 0.6 | % | 0.4 | % | 11.3 | % | 0.4 | % | — | % | 0.7 | % | 0.7 | % | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
30-59 days past due | $ | 18 | $ | — | $ | — | $ | — | $ | 240 | $ | 717 | $ | 17 | $ | 992 | |||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | 3 | 3 | |||||||||||||||||||||||||||||
Greater than 90 days past due (non-accrual) 2 | 1,187 | 1,403 | 2,807 | 5,218 | 234 | 660 | 169 | 11,678 | |||||||||||||||||||||||||||||
Total past due | 1,205 | 1,403 | 2,807 | 5,218 | 474 | 1,377 | 189 | 12,673 | |||||||||||||||||||||||||||||
Current | 182,086 | 239,710 | 622,212 | 26,359 | 97,995 | 71,257 | 17,030 | 1,256,649 | |||||||||||||||||||||||||||||
Total loans 3 | $ | 183,291 | $ | 241,113 | $ | 625,019 | $ | 31,577 | $ | 98,469 | $ | 72,634 | $ | 17,219 | $ | 1,269,322 | |||||||||||||||||||||
Non-accrual loans to total loans | 0.6 | % | 0.6 | % | 0.4 | % | 16.5 | % | 0.2 | % | 0.9 | % | 1 | % | 0.9 | % | |||||||||||||||||||||
1 Our residential loan portfolio includes no sub-prime loans, nor is it our 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 of Purchased Credit Impaired ("PCI") loans that had stopped accreting interest at both September 30, 2014 and December 31, 2013, and exclude accreting PCI loans of $3.8 million and $5.7 million at September 30, 2014 and December 31, 2013, respectively, as their accretable yield interest recognition is independent from the underlying contractual loan delinquency status. There were no accruing loans more than ninety days past due at September 30, 2014 or December 31, 2013. | |||||||||||||||||||||||||||||||||||||
3 Amounts include net deferred loan costs of $406 thousand and $24 thousand at September 30, 2014 and December 31, 2013, respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $4.9 million and $7.6 million at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||||||||||
Our commercial loans are generally made to established small and mid-sized businesses to provide financing for their working capital needs, equipment purchases, acquisitions, or refinancings. Management examines historical, current, and projected cash flows to determine the ability of the borrower to repay obligations as agreed. Commercial loans are made based primarily 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. We target stable local businesses with guarantors that have proven to be resilient in periods of economic stress. Typically, the 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. When a vacancy has occurred, strong guarantors have historically carried the loans until a replacement tenant could be found. The owner's substantial equity investment provides a strong economic incentive to continue to support the commercial real estate projects. As a result, we have 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 independent appraisals. The construction industry can be impacted by significant events, 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 of the completed project value 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 (tenants-in-common) loans, and installment and other consumer loans. We originate consumer loans utilizing credit score information, debt-to-income ratio and loan-to-value ratio analysis. Diversification, relatively small loan amounts that are spread across many individual borrowers, also 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. Installment and other consumer loans are nearly evenly split between mobile home loans and floating home loans along with a small number of personal 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 condition, 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. 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(s) 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. 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 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 $500 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 an analysis of loans by internally assigned grades, including the PCI loans, at September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2014 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-14 | |||||||||||||||||||||||||||||||||||||
Pass | $ | 186,922 | $ | 209,600 | $ | 654,889 | $ | 39,358 | $ | 104,794 | $ | 72,732 | $ | 17,937 | $ | 2,203 | $ | 1,288,435 | |||||||||||||||||||
Special Mention | 7,749 | 10,471 | 9,359 | 856 | 1,849 | 1,704 | 417 | 1,146 | 33,551 | ||||||||||||||||||||||||||||
Substandard | 6,511 | 11,826 | 7,995 | 5,723 | 2,945 | 1,556 | 599 | 1,844 | 38,999 | ||||||||||||||||||||||||||||
Total loans | $ | 201,182 | $ | 231,897 | $ | 672,243 | $ | 45,937 | $ | 109,588 | $ | 75,992 | $ | 18,953 | $ | 5,193 | $ | 1,360,985 | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Pass | $ | 162,625 | $ | 216,537 | $ | 609,157 | $ | 25,069 | $ | 93,792 | $ | 69,176 | $ | 16,336 | $ | 1,340 | $ | 1,194,032 | |||||||||||||||||||
Special Mention | 13,990 | 16,533 | 8,570 | 725 | 2,164 | 1,047 | 227 | 894 | 44,150 | ||||||||||||||||||||||||||||
Substandard | 6,343 | 3,224 | 5,413 | 5,768 | 2,444 | 2,411 | 656 | 4,881 | 31,140 | ||||||||||||||||||||||||||||
Total loans | $ | 182,958 | $ | 236,294 | $ | 623,140 | $ | 31,562 | $ | 98,400 | $ | 72,634 | $ | 17,219 | $ | 7,115 | $ | 1,269,322 | |||||||||||||||||||
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 nonaccrual 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 there is reasonable assurance of repayment and 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, 2014 and December 31, 2013. The summary includes those TDRs that are on non-accrual status and those that continue to accrue interest. | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2014 unaudited) | As of | ||||||||||||||||||||||||||||||||||||
Recorded investment in Troubled Debt Restructurings 1 | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 4,337 | $ | 5,117 | |||||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 8,491 | 4,333 | |||||||||||||||||||||||||||||||||||
Commercial real estate, investor | 527 | 534 | |||||||||||||||||||||||||||||||||||
Construction | 6,654 | 6,335 | |||||||||||||||||||||||||||||||||||
Home equity | 703 | 506 | |||||||||||||||||||||||||||||||||||
Other residential | 1,552 | 2,063 | |||||||||||||||||||||||||||||||||||
Installment and other consumer | 1,724 | 1,693 | |||||||||||||||||||||||||||||||||||
Total | $ | 23,988 | $ | 20,581 | |||||||||||||||||||||||||||||||||
1 Includes $16.9 million and $12.9 million of TDR loans that were accruing interest as of September 30, 2014 and December 31, 2013, respectively. Includes $1.8 million of acquired loans at both September 30, 2014 and December 31, 2013, 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, 2014: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 2 | $ | 513 | $ | 596 | $ | 596 | ||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 1 | 4,226 | 4,216 | 4,206 | |||||||||||||||||||||||||||||||||
Home equity | 1 | 74 | 74 | 74 | |||||||||||||||||||||||||||||||||
Other residential | 1 | 815 | $ | 814 | $ | 814 | |||||||||||||||||||||||||||||||
Total | 5 | $ | 5,628 | $ | 5,700 | $ | 5,690 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Construction | 2 | 11 | 9 | 9 | |||||||||||||||||||||||||||||||||
Total | 7 | $ | 4,098 | $ | 4,063 | $ | 4,054 | ||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the nine months ended September 30, 2014: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial 1 | 7 | $ | 1,336 | $ | 1,460 | $ | 1,431 | ||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 1 | 4,226 | 4,216 | 4,206 | |||||||||||||||||||||||||||||||||
Other residential | 1 | 815 | 814 | 814 | |||||||||||||||||||||||||||||||||
Home equity | 2 | 224 | 224 | 222 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 6 | 281 | 278 | 270 | |||||||||||||||||||||||||||||||||
Total | 17 | $ | 6,882 | $ | 6,992 | $ | 6,943 | ||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the nine months ended September 30, 2013: | |||||||||||||||||||||||||||||||||||||
Commercial and Industrial 2 | 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 | ||||||||||||||||||||||||||||||
1 Excludes one contract modified and subsequently paid off during the nine months ended September 30, 2014 in the amount of $905 thousand pre-modification and post-modification. | |||||||||||||||||||||||||||||||||||||
2 Excludes two contracts modified and subsequently paid off during the nine months ended September 30, 2013. The pre-modification and post-modification outstanding recorded investment balances were both $218 thousand. | |||||||||||||||||||||||||||||||||||||
Modifications during the nine months ended September 30, 2014 primarily involved maturity extensions and interest rate concessions, while modifications during the nine months ended September 30, 2013 were primarily due to extensions of maturity. During the first nine months of 2014 and 2013, there were no defaults on loans that had been modified as troubled debt restructuring within the prior twelve-month period. We report defaulted TDRs based on a payment default definition of more than ninety days past due. | |||||||||||||||||||||||||||||||||||||
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; 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-14 | |||||||||||||||||||||||||||||||||||||
Recorded investment in impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 1,212 | $ | 5,609 | $ | 3,032 | $ | 5,173 | $ | 550 | $ | 528 | $ | 240 | $ | 16,344 | |||||||||||||||||||||
With a specific allowance recorded | 3,125 | 2,882 | — | 1,492 | 302 | 1,024 | 1,563 | 10,388 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 4,337 | $ | 8,491 | $ | 3,032 | $ | 6,665 | $ | 852 | $ | 1,552 | $ | 1,803 | $ | 26,732 | |||||||||||||||||||||
Unpaid principal balance of impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 1,258 | $ | 7,266 | $ | 5,023 | $ | 7,863 | $ | 1,036 | $ | 528 | $ | 240 | $ | 23,214 | |||||||||||||||||||||
With a specific allowance recorded | 3,220 | 2,882 | — | 1,682 | 302 | 1,024 | 1,564 | 10,674 | |||||||||||||||||||||||||||||
Total unpaid principal balance of impaired loans | $ | 4,478 | $ | 10,148 | $ | 5,023 | $ | 9,545 | $ | 1,338 | $ | 1,552 | $ | 1,804 | $ | 33,888 | |||||||||||||||||||||
Specific allowance | $ | 817 | $ | 100 | $ | — | $ | 3 | $ | 29 | $ | 98 | $ | 286 | $ | 1,333 | |||||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended September 30, 2014 | $ | 5,292 | $ | 6,982 | $ | 3,090 | $ | 6,678 | $ | 857 | $ | 1,440 | $ | 1,847 | $ | 26,186 | |||||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended September 30, 2014 | $ | 88 | $ | 54 | $ | 7 | $ | 23 | $ | 5 | $ | 14 | $ | 19 | $ | 210 | |||||||||||||||||||||
Average recorded investment in impaired loans during the nine months ended September 30, 2014 | $ | 5,818 | $ | 5,980 | $ | 3,186 | $ | 6,568 | $ | 730 | $ | 1,726 | $ | 1,876 | $ | 25,884 | |||||||||||||||||||||
Interest income recognized on impaired loans during the nine months ended September 30, 2014 | $ | 309 | $ | 220 | $ | 21 | $ | 67 | $ | 14 | $ | 56 | $ | 56 | $ | 743 | |||||||||||||||||||||
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 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) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Total | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Recorded investment in impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 977 | $ | 1,403 | $ | 3,341 | $ | 2,806 | $ | 349 | $ | 1,254 | $ | 112 | $ | 10,242 | |||||||||||||||||||||
With a specific allowance recorded | 4,725 | 4,085 | — | 3,927 | 157 | 809 | 1,750 | $ | 15,453 | ||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 5,702 | $ | 5,488 | $ | 3,341 | $ | 6,733 | $ | 506 | $ | 2,063 | $ | 1,862 | $ | 25,695 | |||||||||||||||||||||
Unpaid principal balance of impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 977 | $ | 3,060 | $ | 5,333 | $ | 5,547 | $ | 835 | $ | 1,254 | $ | 154 | $ | 17,160 | |||||||||||||||||||||
With a specific allowance recorded | 4,930 | 5,088 | — | 4,114 | 157 | 809 | 1,750 | 16,848 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 5,907 | $ | 8,148 | $ | 5,333 | $ | 9,661 | $ | 992 | $ | 2,063 | $ | 1,904 | $ | 34,008 | |||||||||||||||||||||
Specific allowance | $ | 1,170 | $ | 90 | $ | — | $ | 341 | $ | 1 | $ | 23 | $ | 364 | $ | 1,989 | |||||||||||||||||||||
The gross interest income that would have been recorded, had non-accrual loans been current, totaled $182 thousand and $291 thousand in the quarters ended September 30, 2014, and September 30, 2013, respectively, and totaled $567 thousand and $827 thousand for the nine months ended September 30, 2014 and September 30, 2013, 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, 2014 totaled approximately $5.5 million. At September 30, 2014, there were $1.2 million 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, 2014 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,125 | $ | 1,979 | $ | 6,713 | $ | 571 | $ | 944 | $ | 454 | $ | 481 | $ | 633 | $ | 14,900 | |||||||||||||||||||
Provision (reversal) | (263 | ) | 9 | (26 | ) | (33 | ) | (18 | ) | (8 | ) | 90 | 249 | — | |||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||||||
Recoveries | 44 | 5 | 5 | 96 | 1 | — | — | — | 151 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,906 | $ | 1,993 | $ | 6,692 | $ | 634 | $ | 927 | $ | 446 | $ | 569 | $ | 882 | $ | 15,049 | |||||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,056 | $ | 2,012 | $ | 6,196 | $ | 633 | $ | 875 | $ | 317 | $ | 629 | $ | 506 | $ | 14,224 | |||||||||||||||||||
Provision (reversal) | (208 | ) | (24 | ) | 455 | 109 | 49 | 129 | (136 | ) | 376 | 750 | |||||||||||||||||||||||||
Charge-offs | (66 | ) | — | — | (204 | ) | — | — | (6 | ) | — | (276 | ) | ||||||||||||||||||||||||
Recoveries | 124 | 5 | 41 | 96 | 3 | — | 82 | — | 351 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,906 | $ | 1,993 | $ | 6,692 | $ | 634 | $ | 927 | $ | 446 | $ | 569 | $ | 882 | $ | 15,049 | |||||||||||||||||||
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, 2014: | |||||||||||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 2,089 | $ | 1,893 | $ | 6,692 | $ | 631 | $ | 898 | $ | 348 | $ | 283 | $ | 882 | $ | 13,716 | |||||||||||||||||||
Ending ALLL related to loans individually evaluated for impairment | $ | 814 | $ | 100 | $ | — | $ | — | $ | 29 | $ | 98 | $ | 286 | $ | — | $ | 1,327 | |||||||||||||||||||
Ending ALLL related to purchased credit-impaired loans | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | 6 | |||||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 197,143 | $ | 224,809 | $ | 669,211 | $ | 39,283 | $ | 108,736 | $ | 74,440 | $ | 17,150 | $ | — | $ | 1,330,772 | |||||||||||||||||||
Individually evaluated for impairment1 | 4,039 | 7,088 | 3,032 | 6,654 | 852 | 1,552 | 1,803 | — | 25,020 | ||||||||||||||||||||||||||||
Purchased credit-impaired | 334 | 2,596 | 2,185 | 11 | 67 | — | — | — | 5,193 | ||||||||||||||||||||||||||||
Total | $ | 201,516 | $ | 234,493 | $ | 674,428 | $ | 45,948 | $ | 109,655 | $ | 75,992 | $ | 18,953 | $ | — | $ | 1,360,985 | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 1.44 | % | 0.85 | % | 0.99 | % | 1.38 | % | 0.85 | % | 0.59 | % | 3 | % | NM | 1.11 | % | ||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 868 | % | 142 | % | 256 | % | 12 | % | 209 | % | NM | 374 | % | NM | 153 | % | |||||||||||||||||||||
1 Total excludes $1.7 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, 2013: | |||||||||||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 1,886 | $ | 1,922 | $ | 6,196 | $ | 292 | $ | 874 | $ | 294 | $ | 265 | $ | 506 | $ | 12,235 | |||||||||||||||||||
Ending ALLL related to loans individually evaluated for impairment | $ | 987 | $ | 31 | $ | — | $ | 341 | $ | 1 | $ | 23 | $ | 364 | $ | — | $ | 1,747 | |||||||||||||||||||
Ending ALLL related to purchased credit-impaired loans | $ | 183 | $ | 59 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 242 | |||||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 177,550 | $ | 233,330 | $ | 619,833 | $ | 24,829 | $ | 97,894 | $ | 70,571 | $ | 15,357 | $ | — | $ | 1,239,364 | |||||||||||||||||||
Individually evaluated for impairment1 | 5,408 | 2,930 | 3,341 | 6,733 | 506 | 2,063 | 1,862 | — | 22,843 | ||||||||||||||||||||||||||||
Purchased credit-impaired | 333 | 4,853 | 1,845 | 15 | 69 | — | — | — | 7,115 | ||||||||||||||||||||||||||||
Total | $ | 183,291 | $ | 241,113 | $ | 625,019 | $ | 31,577 | $ | 98,469 | $ | 72,634 | $ | 17,219 | $ | — | $ | 1,269,322 | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 1.67 | % | 0.83 | % | 0.99 | % | 2 | % | 0.89 | % | 0.44 | % | 3.65 | % | NM | 1.12 | % | ||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 257 | % | 143 | % | 221 | % | 12 | % | 374 | % | 48 | % | 372 | % | NM | 122 | % | ||||||||||||||||||||
1 Total excludes $2.9 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, 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 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 | |||||||||||||||||||
Purchased Credit-Impaired Loans | |||||||||||||||||||||||||||||||||||||
We evaluated loans purchased in acquisitions 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 in our two previous acquisitions to be PCI loans based on credit indicators such as nonaccrual status, past due status, loan risk grade, loan-to-value ratio, 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. | |||||||||||||||||||||||||||||||||||||
The following table reflects the outstanding balance and related carrying value of PCI loans as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
PCI Loans | Unpaid principal balance | Carrying value | Unpaid principal balance | Carrying value | |||||||||||||||||||||||||||||||||
(dollars in thousands; 2014 unaudited) | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 503 | $ | 334 | $ | 1,094 | $ | 333 | |||||||||||||||||||||||||||||
Commercial real estate | 6,848 | 4,781 | 9,152 | 6,698 | |||||||||||||||||||||||||||||||||
Construction | 138 | 11 | 149 | 15 | |||||||||||||||||||||||||||||||||
Home equity | 234 | 67 | 239 | 69 | |||||||||||||||||||||||||||||||||
Total purchased credit-impaired loans | $ | 7,723 | $ | 5,193 | $ | 10,634 | $ | 7,115 | |||||||||||||||||||||||||||||
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, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 4,514 | $ | 3,277 | $ | 3,649 | $ | 3,960 | |||||||||||||||||||||||||||||
Removals 1 | — | — | (273 | ) | (791 | ) | |||||||||||||||||||||||||||||||
Accretion | (126 | ) | (153 | ) | (494 | ) | (545 | ) | |||||||||||||||||||||||||||||
Reclassifications (to) from nonaccretable difference 2 | (242 | ) | — | 1,264 | 500 | ||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,146 | $ | 3,124 | $ | 4,146 | $ | 3,124 | |||||||||||||||||||||||||||||
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 changes in expected credit performance and changes in expected amounts and/or 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 $872.6 million and $716.2 million at September 30, 2014 and December 31, 2013, respectively. Our FHLB line of credit totaled $455.8 million and $416.3 million at September 30, 2014 and December 31, 2013, respectively. In addition, we pledge a certain residential loan portfolio, which totaled $28.5 million and $24.4 million at September 30, 2014 and December 31, 2013, respectively, to secure our borrowing capacity with the Federal Reserve Bank (“FRB”). Also see Note 7 below. |
Borrowings
Borrowings | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Borrowings | ' | ||||
Borrowings | |||||
Federal Funds Purchased – We had unsecured lines of credit totaling $72.0 million with correspondent banks for overnight borrowings at September 30, 2014 and $87.0 million at December 31, 2013. In general, interest rates on these lines approximate the Federal funds target rate. At September 30, 2014 and December 31, 2013, we had no overnight borrowings outstanding under these credit facilities. | |||||
Federal Home Loan Bank Borrowings – As of September 30, 2014 and December 31, 2013, we had lines of credit with the FHLB totaling $455.8 million and $416.3 million, respectively, based on eligible collateral of certain loans. At September 30, 2014 and December 31, 2013, 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, 2014. 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, 2014 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, 2014, $440.6 million was remaining as available for borrowing from the FHLB, net of the term borrowing and letters of credit acquired from NorCal totaling $241 thousand. | |||||
Federal Reserve Line of Credit – We have a line of credit with the FRB secured by a certain residential loan portfolio. At September 30, 2014 and December 31, 2013, we had borrowing capacity under this line totaling $28.5 million and $24.4 million, respectively, and had no outstanding borrowings with the FRB. | |||||
As part of the Acquisition, we assumed two tranches of subordinated debentures due to the NorCal Community Bancorp grantor trusts at fair values totaling $4.95 million at acquisition date and contractual values totaling $8.2 million. The difference between the contractual balance and the fair value at acquisition date is accreted into interest expense over the lives of the debentures. Accretion on the subordinated debentures totaled $162 thousand in the first nine months of 2014. The Trusts have the option to defer payment of the distributions for a period of up to five years, as long as there is no default on the subordinated debentures. In the event of interest deferral, dividends to common stockholders are prohibited. The trust preferred securities were sold and issued in private transactions pursuant to an exemption from registration under the Securities Act of 1933, as amended. Bancorp has guaranteed, on a subordinated basis, distributions and other payments due on trust preferred securities totaling $8.0 million issued by the grantor trusts which have identical maturity, repricing and payment terms as the subordinated debentures. | |||||
The following is a summary of the contractual terms of the subordinated debentures due to NorCal Community Bancorp grantor trusts as of September 30, 2014: | |||||
(dollars in thousands) | |||||
Subordinated debentures due to NorCal Community Bancorp Trust I on October 7, 2033 with interest payable quarterly, based on 3-month LIBOR plus 3.05%, repricing quarterly (3.28% as of September 30, 2014), redeemable, in whole or in part, on any interest payment date | $ | 4,124 | |||
Subordinated debentures due to NorCal Community Bancorp Trust II on March 15, 2036 with interest payable quarterly, based on 3-month LIBOR plus 1.40%, repricing quarterly (1.63% as of September 30, 2014), redeemable, in whole or in part, on any interest payment date | 4,124 | ||||
Total | $ | 8,248 | |||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
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 156,688 shares of common stock at $26.81 per share as of September 30, 2014 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 | |||||||||||||
(dollars in thousands except per share data, unaudited) | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | ||||||||||
Cash dividends to common stockholders | $ | 1,185 | $ | 982 | $ | 3,428 | $ | 2,932 | ||||||
Cash dividends per common share | $ | 0.2 | $ | 0.18 | $ | 0.58 | $ | 0.54 | ||||||
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 is equal to 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 in-the-money restricted stock as an addition to common stock with a corresponding decrease in current taxes payable. | ||||||||||||||
The holders of unvested restricted common shares are entitled to dividends on the same per-share ratio as 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, 2014 | ||||||||||||||||||||||
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 some 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 creditworthiness 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 $340.3 million at September 30, 2014. This amount included $172.9 million under commercial lines of credit (these commitments are contingent upon customers maintaining specific credit standards), $111.2 million under revolving home equity lines, $32.2 million under undisbursed construction loans, $10.9 million under standby letters of credit, and a remaining $13.1 million under personal and other lines of credit. We have set aside an allowance for losses in the amount of $677 thousand for these commitments as of September 30, 2014, 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 2028. Most of the leases contain certain renewal options and escalation clauses. At September 30, 2014, the approximate minimum future commitments payable under non-cancelable contracts for leased premises are as follows: | ||||||||||||||||||||||
(dollars in thousands; unaudited) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
Operating leases | $ | 906 | $ | 3,735 | $ | 3,788 | $ | 3,781 | $ | 3,810 | $ | 10,339 | $ | 26,359 | ||||||||
Litigation 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 liabilities, 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. ("Visa") by its member banks in connection with lawsuits related to anti-trust charges and interchange fees ("Covered Litigation"). On December 13, 2013, the district court issued a memorandum and order approving Visa's definitive class settlement agreement in the interchange multidistrict litigation ("Settlement Agreement") with the class plaintiffs. On January 14, 2014, the court entered the final judgment order approving the settlement. A number of objectors to the settlement have appealed that order. Until the appeals are finally adjudicated, no assurance can be provided that Visa will be able to resolve the class plaintiffs' claims as contemplated by the Settlement Agreement. On January 27, 2014, Visa's portion of the takedown payments related to the opt-out merchants, which was calculated to be approximately $1.1 billion, was deposited into the litigation escrow account. The conversion rate of Visa Class B common stock held by us to Class A common stock (as discussed in Note 5) may reduce if Visa makes more Covered Litigation settlement payments in the future and the full impact to member banks is still uncertain. However, we are not aware of significant future cash settlement payments required by us on the Covered Litigation. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
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 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 August 2010 and June 2011, two 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, 2014, we have eight interest rate swap agreements, which are scheduled to mature in September 2018, June 2020, August 2020, 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 $39 thousand and $70 thousand as of September 30, 2014 and December 31, 2013, respectively. Information on our derivatives follows: | |||||||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||||||
(dollars in thousands; 2014 unaudited) | September 30, 2014 | December 31, 2013 | September 30, 2014 | 31-Dec-13 | |||||||||||||||
Fair value hedges: | |||||||||||||||||||
Interest rate contracts notional amount | $ | 10,353 | $ | 17,956 | $ | 21,620 | $ | 21,577 | |||||||||||
Interest rate contracts fair value1 | $ | 313 | $ | 961 | $ | 1,537 | $ | 2,519 | |||||||||||
Three months ended | |||||||||||||||||||
(dollars in thousands; unaudited) | September 30, 2014 | 30-Sep-13 | |||||||||||||||||
Increase in value of designated interest rate swaps recognized in interest income | $ | 21 | $ | 196 | |||||||||||||||
Payment on interest rate swaps recorded in interest income | (251 | ) | (358 | ) | |||||||||||||||
Decrease in value of hedged loans recognized in interest income | $ | (54 | ) | (245 | ) | ||||||||||||||
Decrease in value of yield maintenance agreement recognized against interest income | (15 | ) | (18 | ) | |||||||||||||||
Net loss on derivatives recognized against interest income 2 | $ | (299 | ) | $ | (425 | ) | |||||||||||||
Nine months ended | |||||||||||||||||||
(dollars in thousands; unaudited) | September 30, 2014 | September 30, 2013 | |||||||||||||||||
Increase in value of designated interest rate swaps recognized in interest income | $ | 334 | $ | 2,800 | |||||||||||||||
Payment on interest rate swaps recorded in interest income | (755 | ) | (1,075 | ) | |||||||||||||||
Decrease in value of hedged loans recognized in interest income | (133 | ) | (3,033 | ) | |||||||||||||||
Decrease in value of yield maintenance agreement recognized against interest income | (77 | ) | (54 | ) | |||||||||||||||
Net loss on derivatives recognized against interest income 2 | $ | (631 | ) | $ | (1,362 | ) | |||||||||||||
1 See Note 4 for valuation methodology. | |||||||||||||||||||
2 Includes hedge ineffectiveness loss of $48 thousand and loss of $67 thousand for the quarters ended September 30, 2014 and September 30, 2013, respectively. Hedge ineffectiveness gain of $125 thousand and loss of $287 thousand was recorded in interest income during the nine months ended September 30, 2014 and September 30, 2013, 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 | |||||||||||||||||||
(dollars in thousands; 2014 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, 2014 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 313 | $ | — | $ | 313 | $ | (313 | ) | $ | — | $ | — | ||||||
Counterparty B | — | — | — | — | — | — | |||||||||||||
Total | $ | 313 | $ | — | $ | 313 | $ | (313 | ) | $ | — | $ | — | ||||||
As of December 31, 2013 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 961 | $ | — | $ | 961 | $ | (825 | ) | $ | — | $ | 136 | ||||||
Counterparty B | — | — | — | — | — | — | |||||||||||||
Total | $ | 961 | $ | — | $ | 961 | $ | (825 | ) | $ | — | $ | 136 | ||||||
1 Amounts exclude accrued interest totaling $7 thousand and $10 thousand at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||
(dollars in thousands; 2014 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, 2014 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 1,140 | $ | — | $ | 1,140 | $ | (313 | ) | $ | — | $ | 827 | ||||||
Counterparty B | 397 | — | 397 | — | (397 | ) | — | ||||||||||||
Total | $ | 1,537 | $ | — | $ | 1,537 | $ | (313 | ) | $ | (397 | ) | $ | 827 | |||||
As of December 31, 2013 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 825 | $ | — | $ | 825 | $ | (825 | ) | $ | — | $ | — | ||||||
Counterparty B | 1,694 | — | 1,694 | — | (1,694 | ) | — | ||||||||||||
Total | $ | 2,519 | $ | — | $ | 2,519 | $ | (825 | ) | $ | (1,694 | ) | $ | — | |||||
2 Amounts exclude accrued interest totaling $32 thousand and $60 thousand at September 30, 2014 and December 31, 2013, respectively. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
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 | |
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 potentially diluted 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 potentially diluted common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially diluted 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, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share Reconciliation | ' | ||||||||||||
The following table shows: 1) weighted average basic shares, 2) potentially diluted 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 potentially diluted 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 potentially diluted common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially diluted 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 | ||||||||||||
(shares and dollars in thousands; except per share data; unaudited) | September 30, 2014 | September 30, 2013 | 30-Sep-14 | 30-Sep-13 | |||||||||
Weighted average basic shares outstanding | 5,903 | 5,433 | 5,887 | 5,414 | |||||||||
Potentially diluted common shares related to stock options | 41 | 46 | 42 | 43 | |||||||||
Potentially diluted common shares related to unvested restricted stock | 4 | 4 | 4 | 4 | |||||||||
Potentially diluted common shares related to the warrant | 66 | 55 | 63 | 50 | |||||||||
Weighted average diluted shares outstanding | 6,014 | 5,538 | 5,996 | 5,511 | |||||||||
Net income | $ | 5,378 | $ | 4,004 | $ | 15,079 | $ | 11,925 | |||||
Basic EPS | $ | 0.91 | $ | 0.74 | $ | 2.56 | $ | 2.2 | |||||
Diluted EPS | $ | 0.89 | $ | 0.72 | $ | 2.51 | $ | 2.16 | |||||
Weighted average anti-dilutive shares not included in the calculation of diluted EPS | 51 | 51 | 48 | 48 | |||||||||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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. | |||||||||||||||||
(dollars 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, 2014 (unaudited): | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 169,903 | $ | — | $ | 167,160 | $ | 2,743 | |||||||||
Debentures of government-sponsored agencies | $ | 14,552 | $ | — | $ | 14,552 | $ | — | |||||||||
Privately-issued collateralized mortgage obligations | $ | 7,843 | $ | — | $ | 7,843 | $ | — | |||||||||
Obligations of state and political subdivisions | $ | 14,271 | $ | — | $ | 14,271 | $ | — | |||||||||
Corporate bonds | $ | 5,013 | $ | — | 5,013 | $ | — | ||||||||||
Derivative financial assets (interest rate contracts) | $ | 313 | $ | — | $ | 313 | $ | — | |||||||||
Derivative financial liabilities (interest rate contracts) | $ | 1,537 | $ | — | $ | 1,537 | $ | — | |||||||||
At December 31, 2013: | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | 190,604 | $ | — | $ | 190,604 | $ | — | |||||||||
Debentures of government-sponsored agencies | $ | 21,312 | $ | — | $ | 21,312 | $ | — | |||||||||
Privately-issued collateralized mortgage obligations | $ | 10,874 | $ | — | $ | 10,874 | $ | — | |||||||||
Obligations of state and political subdivisions | $ | 15,771 | $ | — | $ | 15,771 | $ | — | |||||||||
Corporate bonds | $ | 5,437 | $ | — | $ | 5,437 | $ | — | |||||||||
Derivative financial assets (interest rate contracts) | $ | 961 | $ | — | $ | 961 | $ | — | |||||||||
Derivative financial liabilities (interest rate contracts) | $ | 2,519 | $ | — | $ | 2,519 | $ | — | |||||||||
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, 2014 and December 31, 2013. | |||||||||||||||||
(dollars 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, 2014 (unaudited): | |||||||||||||||||
Impaired loans carried at fair value: | |||||||||||||||||
Installment and other consumer | 64 | — | — | 64 | |||||||||||||
Total | $ | 64 | $ | — | $ | — | $ | 64 | |||||||||
At December 31, 2013: | |||||||||||||||||
Impaired loans carried at fair value: | |||||||||||||||||
Construction | 3,037 | — | — | 3,037 | |||||||||||||
Installment and other consumer | 35 | — | — | 35 | |||||||||||||
Total | $ | 3,072 | $ | — | $ | — | $ | 3,072 | |||||||||
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 $15 thousand and $363 thousand at September 30, 2014 and December 31, 2013, 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, 2014 and December 31, 2013, 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, 2014 | December 31, 2013 | ||||||||||||||||
(dollars in thousands; 2014 unaudited) | Carrying Amounts | Fair Value | Fair Value Hierarchy | Carrying Amounts | Fair Value | Fair Value Hierarchy | |||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 46,424 | $ | 46,424 | Level 1 | $ | 103,773 | $ | 103,773 | Level 1 | |||||||
Investment securities held-to-maturity | 118,843 | 121,177 | Level 2 | 122,495 | 123,858 | Level 2 | |||||||||||
Loans, net | 1,345,936 | 1,361,745 | Level 3 | 1,255,098 | 1,245,475 | Level 3 | |||||||||||
Interest receivable | 5,645 | 5,645 | Level 2 | 5,767 | 5,767 | Level 2 | |||||||||||
Financial liabilities | |||||||||||||||||
Deposits | 1,571,624 | 1,572,582 | Level 2 | 1,587,102 | 1,588,278 | Level 2 | |||||||||||
Federal Home Loan Bank borrowings | 15,000 | 15,501 | Level 2 | 15,000 | 15,665 | Level 2 | |||||||||||
Subordinated debentures | 5,131 | 5,187 | Level 3 | 4,969 | 4,950 | Level 3 | |||||||||||
Interest payable | 209 | 209 | Level 2 | 253 | 253 | Level 2 | |||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
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-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Amortized | Fair | Gross Unrealized | Amortized | Fair | Gross Unrealized | |||||||||||||||||||||||||||
(dollars in thousands; 2014 unaudited) | Cost | Value | Gains | (Losses) | Cost | Value | Gains | (Losses) | ||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Obligations of state and | $ | 65,089 | $ | 66,943 | $ | 1,935 | $ | (81 | ) | $ | 80,381 | $ | 81,429 | $ | 1,764 | $ | (716 | ) | ||||||||||||||
political subdivisions | ||||||||||||||||||||||||||||||||
Corporate bonds | 40,363 | 40,691 | 340 | (12 | ) | 42,114 | 42,429 | 375 | (60 | ) | ||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | 13,391 | 13,543 | 152 | — | — | — | — | — | ||||||||||||||||||||||||
Total held-to-maturity | 118,843 | 121,177 | 2,427 | (93 | ) | 122,495 | 123,858 | 2,139 | (776 | ) | ||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
Securities of U.S. government agencies: | ||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC and FNMA | 100,978 | 101,345 | 555 | (188 | ) | 124,063 | 123,033 | 616 | (1,646 | ) | ||||||||||||||||||||||
CMOs issued by FNMA | 15,608 | 15,600 | 65 | (73 | ) | 18,573 | 18,438 | 60 | (195 | ) | ||||||||||||||||||||||
CMOs issued by FHLMC | 33,288 | 33,243 | 96 | (141 | ) | 23,710 | 23,679 | 144 | (175 | ) | ||||||||||||||||||||||
CMOs issued by GNMA | 19,359 | 19,715 | 364 | (8 | ) | 24,944 | 25,454 | 609 | (99 | ) | ||||||||||||||||||||||
Debentures of government- sponsored agencies | 14,727 | 14,552 | 111 | (286 | ) | 21,845 | 21,312 | 108 | (641 | ) | ||||||||||||||||||||||
Privately issued CMOs | 7,627 | 7,843 | 220 | (4 | ) | 10,649 | 10,874 | 257 | (32 | ) | ||||||||||||||||||||||
Obligations of state and | 14,156 | 14,271 | 137 | (22 | ) | 15,948 | 15,771 | 14 | (191 | ) | ||||||||||||||||||||||
political subdivisions | ||||||||||||||||||||||||||||||||
Corporate bonds | 4,933 | 5,013 | 83 | (3 | ) | 5,426 | 5,437 | 25 | (14 | ) | ||||||||||||||||||||||
Total available-for-sale | 210,676 | 211,582 | 1,631 | (725 | ) | 245,158 | 243,998 | 1,833 | (2,993 | ) | ||||||||||||||||||||||
Total investment securities | $ | 329,519 | $ | 332,759 | $ | 4,058 | $ | (818 | ) | $ | 367,653 | $ | 367,856 | $ | 3,972 | $ | (3,769 | ) | ||||||||||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||||||||||||||||||
The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2014 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, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | Held-to-Maturity | Available-for-Sale | |||||||||||||||||||||||||||||
(dollars in thousands; 2014 unaudited) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||||
Within one year | $ | 25,111 | $ | 25,272 | $ | 2,377 | $ | 2,389 | $ | 8,731 | $ | 8,784 | $ | 5,522 | $ | 5,521 | ||||||||||||||||
After one year but within five years | 63,192 | 64,436 | 39,599 | 39,793 | 88,255 | 89,095 | 42,229 | 42,338 | ||||||||||||||||||||||||
After five years through ten years | 15,900 | 16,669 | 19,241 | 19,031 | 24,244 | 24,786 | 26,232 | 25,478 | ||||||||||||||||||||||||
After ten years | 14,640 | 14,800 | 149,459 | 150,369 | 1,265 | 1,193 | 171,175 | 170,661 | ||||||||||||||||||||||||
Total | $ | 118,843 | $ | 121,177 | $ | 210,676 | $ | 211,582 | $ | 122,495 | $ | 123,858 | $ | 245,158 | $ | 243,998 | ||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||||||||||||||||||||||
Those securities are summarized and classified according to the duration of the loss period in the table below: | ||||||||||||||||||||||||||||||||
September 30, 2014 | < 12 continuous months | > 12 continuous months | Total securities | |||||||||||||||||||||||||||||
in a loss position | ||||||||||||||||||||||||||||||||
(dollars in thousands; unaudited) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Obligations of state & political subdivisions | $ | 5,636 | $ | (27 | ) | 4,280 | (54 | ) | $ | 9,916 | $ | (81 | ) | |||||||||||||||||||
Corporate bonds | — | — | 3,550 | (12 | ) | 3,550 | (12 | ) | ||||||||||||||||||||||||
Total held-to-maturity | 5,636 | (27 | ) | 7,830 | (66 | ) | 13,466 | (93 | ) | |||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 20,670 | (188 | ) | — | — | 20,670 | (188 | ) | ||||||||||||||||||||||||
CMOs issued by FNMA | 4,346 | (73 | ) | — | — | 4,346 | (73 | ) | ||||||||||||||||||||||||
CMOs issued by FHLMC | 23,886 | (141 | ) | — | — | 23,886 | (141 | ) | ||||||||||||||||||||||||
CMOs issued by GNMA | 3,474 | (8 | ) | — | — | 3,474 | (8 | ) | ||||||||||||||||||||||||
Debentures of government- sponsored agencies | 493 | (2 | ) | 9,717 | (284 | ) | 10,210 | (286 | ) | |||||||||||||||||||||||
Privately issued CMOs | 318 | (4 | ) | — | — | 318 | (4 | ) | ||||||||||||||||||||||||
Obligations of state & political subdivisions | 2,804 | (22 | ) | — | — | 2,804 | (22 | ) | ||||||||||||||||||||||||
Corporate bonds | 989 | (3 | ) | — | — | 989 | (3 | ) | ||||||||||||||||||||||||
Total available-for-sale | 56,980 | (441 | ) | 9,717 | (284 | ) | 66,697 | (725 | ) | |||||||||||||||||||||||
Total temporarily impaired securities | $ | 62,616 | $ | (468 | ) | $ | 17,547 | $ | (350 | ) | $ | 80,163 | $ | (818 | ) | |||||||||||||||||
31-Dec-13 | < 12 continuous months | > 12 continuous months | Total securities | |||||||||||||||||||||||||||||
in a loss position | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||||||||
Obligations of state & political subdivisions | $ | 13,933 | $ | (419 | ) | $ | 9,033 | $ | (297 | ) | $ | 22,966 | $ | (716 | ) | |||||||||||||||||
Corporate bonds | 3,017 | (11 | ) | 4,963 | (49 | ) | 7,980 | (60 | ) | |||||||||||||||||||||||
Total held-to-maturity | 16,950 | (430 | ) | 13,996 | (346 | ) | 30,946 | (776 | ) | |||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||
MBS pass-through securities issued by FNMA and FHLMC | 90,914 | (1,297 | ) | 3,172 | (349 | ) | 94,086 | (1,646 | ) | |||||||||||||||||||||||
CMOs issued by FNMA | 17,535 | (195 | ) | — | — | 17,535 | (195 | ) | ||||||||||||||||||||||||
CMOs issued by FHLMC | 17,899 | (175 | ) | — | — | 17,899 | (175 | ) | ||||||||||||||||||||||||
CMOs issued by GNMA | 3,966 | (99 | ) | — | — | 3,966 | (99 | ) | ||||||||||||||||||||||||
Debentures of government- sponsored agencies | 16,872 | (641 | ) | — | — | 16,872 | (641 | ) | ||||||||||||||||||||||||
Privately issued CMOs | 4,634 | (31 | ) | 159 | (1 | ) | 4,793 | (32 | ) | |||||||||||||||||||||||
Obligations of state & political subdivisions | 11,516 | (191 | ) | — | — | 11,516 | (191 | ) | ||||||||||||||||||||||||
Corporate bonds | 1,479 | (14 | ) | — | — | 1,479 | (14 | ) | ||||||||||||||||||||||||
Total available-for-sale | 164,815 | (2,643 | ) | 3,331 | (350 | ) | 168,146 | (2,993 | ) | |||||||||||||||||||||||
Total temporarily impaired securities | $ | 181,765 | $ | (3,073 | ) | $ | 17,327 | $ | (696 | ) | $ | 199,092 | $ | (3,769 | ) | |||||||||||||||||
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables | ' | ||||||||||||||||||||||||||||||||||||
Outstanding loans by class and payment aging as of September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||||||||||||||
Loan Aging Analysis by Class as of September 30, 2014 and December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2014 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-14 | |||||||||||||||||||||||||||||||||||||
30-59 days past due | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 279 | $ | 282 | |||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | 17 | 17 | |||||||||||||||||||||||||||||
Greater than 90 days past due (non-accrual) 2 | 193 | 1,403 | 2,505 | 5,173 | 436 | — | 128 | 9,838 | |||||||||||||||||||||||||||||
Total past due | 196 | 1,403 | 2,505 | 5,173 | 436 | — | 424 | 10,137 | |||||||||||||||||||||||||||||
Current | 201,320 | 233,090 | 671,923 | 40,775 | 109,219 | 75,992 | 18,529 | 1,350,848 | |||||||||||||||||||||||||||||
Total loans 3 | $ | 201,516 | $ | 234,493 | $ | 674,428 | $ | 45,948 | $ | 109,655 | $ | 75,992 | $ | 18,953 | $ | 1,360,985 | |||||||||||||||||||||
Non-accrual loans to total loans | 0.1 | % | 0.6 | % | 0.4 | % | 11.3 | % | 0.4 | % | — | % | 0.7 | % | 0.7 | % | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
30-59 days past due | $ | 18 | $ | — | $ | — | $ | — | $ | 240 | $ | 717 | $ | 17 | $ | 992 | |||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | 3 | 3 | |||||||||||||||||||||||||||||
Greater than 90 days past due (non-accrual) 2 | 1,187 | 1,403 | 2,807 | 5,218 | 234 | 660 | 169 | 11,678 | |||||||||||||||||||||||||||||
Total past due | 1,205 | 1,403 | 2,807 | 5,218 | 474 | 1,377 | 189 | 12,673 | |||||||||||||||||||||||||||||
Current | 182,086 | 239,710 | 622,212 | 26,359 | 97,995 | 71,257 | 17,030 | 1,256,649 | |||||||||||||||||||||||||||||
Total loans 3 | $ | 183,291 | $ | 241,113 | $ | 625,019 | $ | 31,577 | $ | 98,469 | $ | 72,634 | $ | 17,219 | $ | 1,269,322 | |||||||||||||||||||||
Non-accrual loans to total loans | 0.6 | % | 0.6 | % | 0.4 | % | 16.5 | % | 0.2 | % | 0.9 | % | 1 | % | 0.9 | % | |||||||||||||||||||||
1 Our residential loan portfolio includes no sub-prime loans, nor is it our 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 of Purchased Credit Impaired ("PCI") loans that had stopped accreting interest at both September 30, 2014 and December 31, 2013, and exclude accreting PCI loans of $3.8 million and $5.7 million at September 30, 2014 and December 31, 2013, respectively, as their accretable yield interest recognition is independent from the underlying contractual loan delinquency status. There were no accruing loans more than ninety days past due at September 30, 2014 or December 31, 2013. | |||||||||||||||||||||||||||||||||||||
3 Amounts include net deferred loan costs of $406 thousand and $24 thousand at September 30, 2014 and December 31, 2013, respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $4.9 million and $7.6 million at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | ' | ||||||||||||||||||||||||||||||||||||
The following table represents an analysis of loans by internally assigned grades, including the PCI loans, at September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2014 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-14 | |||||||||||||||||||||||||||||||||||||
Pass | $ | 186,922 | $ | 209,600 | $ | 654,889 | $ | 39,358 | $ | 104,794 | $ | 72,732 | $ | 17,937 | $ | 2,203 | $ | 1,288,435 | |||||||||||||||||||
Special Mention | 7,749 | 10,471 | 9,359 | 856 | 1,849 | 1,704 | 417 | 1,146 | 33,551 | ||||||||||||||||||||||||||||
Substandard | 6,511 | 11,826 | 7,995 | 5,723 | 2,945 | 1,556 | 599 | 1,844 | 38,999 | ||||||||||||||||||||||||||||
Total loans | $ | 201,182 | $ | 231,897 | $ | 672,243 | $ | 45,937 | $ | 109,588 | $ | 75,992 | $ | 18,953 | $ | 5,193 | $ | 1,360,985 | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Pass | $ | 162,625 | $ | 216,537 | $ | 609,157 | $ | 25,069 | $ | 93,792 | $ | 69,176 | $ | 16,336 | $ | 1,340 | $ | 1,194,032 | |||||||||||||||||||
Special Mention | 13,990 | 16,533 | 8,570 | 725 | 2,164 | 1,047 | 227 | 894 | 44,150 | ||||||||||||||||||||||||||||
Substandard | 6,343 | 3,224 | 5,413 | 5,768 | 2,444 | 2,411 | 656 | 4,881 | 31,140 | ||||||||||||||||||||||||||||
Total loans | $ | 182,958 | $ | 236,294 | $ | 623,140 | $ | 31,562 | $ | 98,400 | $ | 72,634 | $ | 17,219 | $ | 7,115 | $ | 1,269,322 | |||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | ||||||||||||||||||||||||||||||||||||
The table below summarizes outstanding TDR loans by loan class as of September 30, 2014 and December 31, 2013. The summary includes those TDRs that are on non-accrual status and those that continue to accrue interest. | |||||||||||||||||||||||||||||||||||||
(dollars in thousands; 2014 unaudited) | As of | ||||||||||||||||||||||||||||||||||||
Recorded investment in Troubled Debt Restructurings 1 | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 4,337 | $ | 5,117 | |||||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 8,491 | 4,333 | |||||||||||||||||||||||||||||||||||
Commercial real estate, investor | 527 | 534 | |||||||||||||||||||||||||||||||||||
Construction | 6,654 | 6,335 | |||||||||||||||||||||||||||||||||||
Home equity | 703 | 506 | |||||||||||||||||||||||||||||||||||
Other residential | 1,552 | 2,063 | |||||||||||||||||||||||||||||||||||
Installment and other consumer | 1,724 | 1,693 | |||||||||||||||||||||||||||||||||||
Total | $ | 23,988 | $ | 20,581 | |||||||||||||||||||||||||||||||||
1 Includes $16.9 million and $12.9 million of TDR loans that were accruing interest as of September 30, 2014 and December 31, 2013, respectively. Includes $1.8 million of acquired loans at both September 30, 2014 and December 31, 2013, 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, 2014: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 2 | $ | 513 | $ | 596 | $ | 596 | ||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 1 | 4,226 | 4,216 | 4,206 | |||||||||||||||||||||||||||||||||
Home equity | 1 | 74 | 74 | 74 | |||||||||||||||||||||||||||||||||
Other residential | 1 | 815 | $ | 814 | $ | 814 | |||||||||||||||||||||||||||||||
Total | 5 | $ | 5,628 | $ | 5,700 | $ | 5,690 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Construction | 2 | 11 | 9 | 9 | |||||||||||||||||||||||||||||||||
Total | 7 | $ | 4,098 | $ | 4,063 | $ | 4,054 | ||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the nine months ended September 30, 2014: | |||||||||||||||||||||||||||||||||||||
Commercial and industrial 1 | 7 | $ | 1,336 | $ | 1,460 | $ | 1,431 | ||||||||||||||||||||||||||||||
Commercial real estate, owner-occupied | 1 | 4,226 | 4,216 | 4,206 | |||||||||||||||||||||||||||||||||
Other residential | 1 | 815 | 814 | 814 | |||||||||||||||||||||||||||||||||
Home equity | 2 | 224 | 224 | 222 | |||||||||||||||||||||||||||||||||
Installment and other consumer | 6 | 281 | 278 | 270 | |||||||||||||||||||||||||||||||||
Total | 17 | $ | 6,882 | $ | 6,992 | $ | 6,943 | ||||||||||||||||||||||||||||||
Troubled Debt Restructurings during the nine months ended September 30, 2013: | |||||||||||||||||||||||||||||||||||||
Commercial and Industrial 2 | 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 | ||||||||||||||||||||||||||||||
1 Excludes one contract modified and subsequently paid off during the nine months ended September 30, 2014 in the amount of $905 thousand pre-modification and post-modification. | |||||||||||||||||||||||||||||||||||||
2 Excludes two contracts modified and subsequently paid off during the nine months ended September 30, 2013. The pre-modification and post-modification outstanding recorded investment balances were both $218 thousand. | |||||||||||||||||||||||||||||||||||||
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; 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-14 | |||||||||||||||||||||||||||||||||||||
Recorded investment in impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 1,212 | $ | 5,609 | $ | 3,032 | $ | 5,173 | $ | 550 | $ | 528 | $ | 240 | $ | 16,344 | |||||||||||||||||||||
With a specific allowance recorded | 3,125 | 2,882 | — | 1,492 | 302 | 1,024 | 1,563 | 10,388 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 4,337 | $ | 8,491 | $ | 3,032 | $ | 6,665 | $ | 852 | $ | 1,552 | $ | 1,803 | $ | 26,732 | |||||||||||||||||||||
Unpaid principal balance of impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 1,258 | $ | 7,266 | $ | 5,023 | $ | 7,863 | $ | 1,036 | $ | 528 | $ | 240 | $ | 23,214 | |||||||||||||||||||||
With a specific allowance recorded | 3,220 | 2,882 | — | 1,682 | 302 | 1,024 | 1,564 | 10,674 | |||||||||||||||||||||||||||||
Total unpaid principal balance of impaired loans | $ | 4,478 | $ | 10,148 | $ | 5,023 | $ | 9,545 | $ | 1,338 | $ | 1,552 | $ | 1,804 | $ | 33,888 | |||||||||||||||||||||
Specific allowance | $ | 817 | $ | 100 | $ | — | $ | 3 | $ | 29 | $ | 98 | $ | 286 | $ | 1,333 | |||||||||||||||||||||
Average recorded investment in impaired loans during the quarter ended September 30, 2014 | $ | 5,292 | $ | 6,982 | $ | 3,090 | $ | 6,678 | $ | 857 | $ | 1,440 | $ | 1,847 | $ | 26,186 | |||||||||||||||||||||
Interest income recognized on impaired loans during the quarter ended September 30, 2014 | $ | 88 | $ | 54 | $ | 7 | $ | 23 | $ | 5 | $ | 14 | $ | 19 | $ | 210 | |||||||||||||||||||||
Average recorded investment in impaired loans during the nine months ended September 30, 2014 | $ | 5,818 | $ | 5,980 | $ | 3,186 | $ | 6,568 | $ | 730 | $ | 1,726 | $ | 1,876 | $ | 25,884 | |||||||||||||||||||||
Interest income recognized on impaired loans during the nine months ended September 30, 2014 | $ | 309 | $ | 220 | $ | 21 | $ | 67 | $ | 14 | $ | 56 | $ | 56 | $ | 743 | |||||||||||||||||||||
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 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) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Total | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Recorded investment in impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 977 | $ | 1,403 | $ | 3,341 | $ | 2,806 | $ | 349 | $ | 1,254 | $ | 112 | $ | 10,242 | |||||||||||||||||||||
With a specific allowance recorded | 4,725 | 4,085 | — | 3,927 | 157 | 809 | 1,750 | $ | 15,453 | ||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 5,702 | $ | 5,488 | $ | 3,341 | $ | 6,733 | $ | 506 | $ | 2,063 | $ | 1,862 | $ | 25,695 | |||||||||||||||||||||
Unpaid principal balance of impaired loans: | |||||||||||||||||||||||||||||||||||||
With no specific allowance recorded | $ | 977 | $ | 3,060 | $ | 5,333 | $ | 5,547 | $ | 835 | $ | 1,254 | $ | 154 | $ | 17,160 | |||||||||||||||||||||
With a specific allowance recorded | 4,930 | 5,088 | — | 4,114 | 157 | 809 | 1,750 | 16,848 | |||||||||||||||||||||||||||||
Total recorded investment in impaired loans | $ | 5,907 | $ | 8,148 | $ | 5,333 | $ | 9,661 | $ | 992 | $ | 2,063 | $ | 1,904 | $ | 34,008 | |||||||||||||||||||||
Specific allowance | $ | 1,170 | $ | 90 | $ | — | $ | 341 | $ | 1 | $ | 23 | $ | 364 | $ | 1,989 | |||||||||||||||||||||
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, 2014 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,125 | $ | 1,979 | $ | 6,713 | $ | 571 | $ | 944 | $ | 454 | $ | 481 | $ | 633 | $ | 14,900 | |||||||||||||||||||
Provision (reversal) | (263 | ) | 9 | (26 | ) | (33 | ) | (18 | ) | (8 | ) | 90 | 249 | — | |||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||||||
Recoveries | 44 | 5 | 5 | 96 | 1 | — | — | — | 151 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,906 | $ | 1,993 | $ | 6,692 | $ | 634 | $ | 927 | $ | 446 | $ | 569 | $ | 882 | $ | 15,049 | |||||||||||||||||||
For the nine months ended September 30, 2014 | |||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,056 | $ | 2,012 | $ | 6,196 | $ | 633 | $ | 875 | $ | 317 | $ | 629 | $ | 506 | $ | 14,224 | |||||||||||||||||||
Provision (reversal) | (208 | ) | (24 | ) | 455 | 109 | 49 | 129 | (136 | ) | 376 | 750 | |||||||||||||||||||||||||
Charge-offs | (66 | ) | — | — | (204 | ) | — | — | (6 | ) | — | (276 | ) | ||||||||||||||||||||||||
Recoveries | 124 | 5 | 41 | 96 | 3 | — | 82 | — | 351 | ||||||||||||||||||||||||||||
Ending balance | $ | 2,906 | $ | 1,993 | $ | 6,692 | $ | 634 | $ | 927 | $ | 446 | $ | 569 | $ | 882 | $ | 15,049 | |||||||||||||||||||
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, 2014: | |||||||||||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 2,089 | $ | 1,893 | $ | 6,692 | $ | 631 | $ | 898 | $ | 348 | $ | 283 | $ | 882 | $ | 13,716 | |||||||||||||||||||
Ending ALLL related to loans individually evaluated for impairment | $ | 814 | $ | 100 | $ | — | $ | — | $ | 29 | $ | 98 | $ | 286 | $ | — | $ | 1,327 | |||||||||||||||||||
Ending ALLL related to purchased credit-impaired loans | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | 6 | |||||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 197,143 | $ | 224,809 | $ | 669,211 | $ | 39,283 | $ | 108,736 | $ | 74,440 | $ | 17,150 | $ | — | $ | 1,330,772 | |||||||||||||||||||
Individually evaluated for impairment1 | 4,039 | 7,088 | 3,032 | 6,654 | 852 | 1,552 | 1,803 | — | 25,020 | ||||||||||||||||||||||||||||
Purchased credit-impaired | 334 | 2,596 | 2,185 | 11 | 67 | — | — | — | 5,193 | ||||||||||||||||||||||||||||
Total | $ | 201,516 | $ | 234,493 | $ | 674,428 | $ | 45,948 | $ | 109,655 | $ | 75,992 | $ | 18,953 | $ | — | $ | 1,360,985 | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 1.44 | % | 0.85 | % | 0.99 | % | 1.38 | % | 0.85 | % | 0.59 | % | 3 | % | NM | 1.11 | % | ||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 868 | % | 142 | % | 256 | % | 12 | % | 209 | % | NM | 374 | % | NM | 153 | % | |||||||||||||||||||||
1 Total excludes $1.7 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, 2013: | |||||||||||||||||||||||||||||||||||||
Ending ALLL related to loans collectively evaluated for impairment | $ | 1,886 | $ | 1,922 | $ | 6,196 | $ | 292 | $ | 874 | $ | 294 | $ | 265 | $ | 506 | $ | 12,235 | |||||||||||||||||||
Ending ALLL related to loans individually evaluated for impairment | $ | 987 | $ | 31 | $ | — | $ | 341 | $ | 1 | $ | 23 | $ | 364 | $ | — | $ | 1,747 | |||||||||||||||||||
Ending ALLL related to purchased credit-impaired loans | $ | 183 | $ | 59 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 242 | |||||||||||||||||||
Loans outstanding: | |||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 177,550 | $ | 233,330 | $ | 619,833 | $ | 24,829 | $ | 97,894 | $ | 70,571 | $ | 15,357 | $ | — | $ | 1,239,364 | |||||||||||||||||||
Individually evaluated for impairment1 | 5,408 | 2,930 | 3,341 | 6,733 | 506 | 2,063 | 1,862 | — | 22,843 | ||||||||||||||||||||||||||||
Purchased credit-impaired | 333 | 4,853 | 1,845 | 15 | 69 | — | — | — | 7,115 | ||||||||||||||||||||||||||||
Total | $ | 183,291 | $ | 241,113 | $ | 625,019 | $ | 31,577 | $ | 98,469 | $ | 72,634 | $ | 17,219 | $ | — | $ | 1,269,322 | |||||||||||||||||||
Ratio of allowance for loan losses to total loans | 1.67 | % | 0.83 | % | 0.99 | % | 2 | % | 0.89 | % | 0.44 | % | 3.65 | % | NM | 1.12 | % | ||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 257 | % | 143 | % | 221 | % | 12 | % | 374 | % | 48 | % | 372 | % | NM | 122 | % | ||||||||||||||||||||
1 Total excludes $2.9 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, 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 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 | |||||||||||||||||||
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, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
PCI Loans | Unpaid principal balance | Carrying value | Unpaid principal balance | Carrying value | |||||||||||||||||||||||||||||||||
(dollars in thousands; 2014 unaudited) | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 503 | $ | 334 | $ | 1,094 | $ | 333 | |||||||||||||||||||||||||||||
Commercial real estate | 6,848 | 4,781 | 9,152 | 6,698 | |||||||||||||||||||||||||||||||||
Construction | 138 | 11 | 149 | 15 | |||||||||||||||||||||||||||||||||
Home equity | 234 | 67 | 239 | 69 | |||||||||||||||||||||||||||||||||
Total purchased credit-impaired loans | $ | 7,723 | $ | 5,193 | $ | 10,634 | $ | 7,115 | |||||||||||||||||||||||||||||
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, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 4,514 | $ | 3,277 | $ | 3,649 | $ | 3,960 | |||||||||||||||||||||||||||||
Removals 1 | — | — | (273 | ) | (791 | ) | |||||||||||||||||||||||||||||||
Accretion | (126 | ) | (153 | ) | (494 | ) | (545 | ) | |||||||||||||||||||||||||||||
Reclassifications (to) from nonaccretable difference 2 | (242 | ) | — | 1,264 | 500 | ||||||||||||||||||||||||||||||||
Balance at end of period | $ | 4,146 | $ | 3,124 | $ | 4,146 | $ | 3,124 | |||||||||||||||||||||||||||||
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 changes in expected credit performance and changes in expected amounts and/or timing of cash flows. |
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Long-term Debt Instruments | ' | ||||
The following is a summary of the contractual terms of the subordinated debentures due to NorCal Community Bancorp grantor trusts as of September 30, 2014: | |||||
(dollars in thousands) | |||||
Subordinated debentures due to NorCal Community Bancorp Trust I on October 7, 2033 with interest payable quarterly, based on 3-month LIBOR plus 3.05%, repricing quarterly (3.28% as of September 30, 2014), redeemable, in whole or in part, on any interest payment date | $ | 4,124 | |||
Subordinated debentures due to NorCal Community Bancorp Trust II on March 15, 2036 with interest payable quarterly, based on 3-month LIBOR plus 1.40%, repricing quarterly (1.63% as of September 30, 2014), redeemable, in whole or in part, on any interest payment date | 4,124 | ||||
Total | $ | 8,248 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
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 | |||||||||||||
(dollars in thousands except per share data, unaudited) | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | ||||||||||
Cash dividends to common stockholders | $ | 1,185 | $ | 982 | $ | 3,428 | $ | 2,932 | ||||||
Cash dividends per common share | $ | 0.2 | $ | 0.18 | $ | 0.58 | $ | 0.54 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||||||||||||||||
At September 30, 2014, the approximate minimum future commitments payable under non-cancelable contracts for leased premises are as follows: | ||||||||||||||||||||||
(dollars in thousands; unaudited) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
Operating leases | $ | 906 | $ | 3,735 | $ | 3,788 | $ | 3,781 | $ | 3,810 | $ | 10,339 | $ | 26,359 | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||||||
Information on our derivatives follows: | |||||||||||||||||||
Asset derivatives | Liability derivatives | ||||||||||||||||||
(dollars in thousands; 2014 unaudited) | September 30, 2014 | December 31, 2013 | September 30, 2014 | 31-Dec-13 | |||||||||||||||
Fair value hedges: | |||||||||||||||||||
Interest rate contracts notional amount | $ | 10,353 | $ | 17,956 | $ | 21,620 | $ | 21,577 | |||||||||||
Interest rate contracts fair value1 | $ | 313 | $ | 961 | $ | 1,537 | $ | 2,519 | |||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||||||
Three months ended | |||||||||||||||||||
(dollars in thousands; unaudited) | September 30, 2014 | 30-Sep-13 | |||||||||||||||||
Increase in value of designated interest rate swaps recognized in interest income | $ | 21 | $ | 196 | |||||||||||||||
Payment on interest rate swaps recorded in interest income | (251 | ) | (358 | ) | |||||||||||||||
Decrease in value of hedged loans recognized in interest income | $ | (54 | ) | (245 | ) | ||||||||||||||
Decrease in value of yield maintenance agreement recognized against interest income | (15 | ) | (18 | ) | |||||||||||||||
Net loss on derivatives recognized against interest income 2 | $ | (299 | ) | $ | (425 | ) | |||||||||||||
Nine months ended | |||||||||||||||||||
(dollars in thousands; unaudited) | September 30, 2014 | September 30, 2013 | |||||||||||||||||
Increase in value of designated interest rate swaps recognized in interest income | $ | 334 | $ | 2,800 | |||||||||||||||
Payment on interest rate swaps recorded in interest income | (755 | ) | (1,075 | ) | |||||||||||||||
Decrease in value of hedged loans recognized in interest income | (133 | ) | (3,033 | ) | |||||||||||||||
Decrease in value of yield maintenance agreement recognized against interest income | (77 | ) | (54 | ) | |||||||||||||||
Net loss on derivatives recognized against interest income 2 | $ | (631 | ) | $ | (1,362 | ) | |||||||||||||
1 See Note 4 for valuation methodology. | |||||||||||||||||||
2 Includes hedge ineffectiveness loss of $48 thousand and loss of $67 thousand for the quarters ended September 30, 2014 and September 30, 2013, respectively. Hedge ineffectiveness gain of $125 thousand and loss of $287 thousand was recorded in interest income during the nine months ended September 30, 2014 and September 30, 2013, respectively. Changes in value of swaps were included in the assessment of hedge effectiveness. | |||||||||||||||||||
Offsetting Assets | ' | ||||||||||||||||||
Information on financial instruments that are eligible for offset in the consolidated statements of condition follows: | |||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||
(dollars in thousands; 2014 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, 2014 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 313 | $ | — | $ | 313 | $ | (313 | ) | $ | — | $ | — | ||||||
Counterparty B | — | — | — | — | — | — | |||||||||||||
Total | $ | 313 | $ | — | $ | 313 | $ | (313 | ) | $ | — | $ | — | ||||||
As of December 31, 2013 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 961 | $ | — | $ | 961 | $ | (825 | ) | $ | — | $ | 136 | ||||||
Counterparty B | — | — | — | — | — | — | |||||||||||||
Total | $ | 961 | $ | — | $ | 961 | $ | (825 | ) | $ | — | $ | 136 | ||||||
1 Amounts exclude accrued interest totaling $7 thousand and $10 thousand at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
Offsetting Liabilities | ' | ||||||||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||
(dollars in thousands; 2014 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, 2014 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 1,140 | $ | — | $ | 1,140 | $ | (313 | ) | $ | — | $ | 827 | ||||||
Counterparty B | 397 | — | 397 | — | (397 | ) | — | ||||||||||||
Total | $ | 1,537 | $ | — | $ | 1,537 | $ | (313 | ) | $ | (397 | ) | $ | 827 | |||||
As of December 31, 2013 | |||||||||||||||||||
Derivatives by Counterparty | |||||||||||||||||||
Counterparty A | $ | 825 | $ | — | $ | 825 | $ | (825 | ) | $ | — | $ | — | ||||||
Counterparty B | 1,694 | — | 1,694 | — | (1,694 | ) | — | ||||||||||||
Total | $ | 2,519 | $ | — | $ | 2,519 | $ | (825 | ) | $ | (1,694 | ) | $ | — | |||||
2 Amounts exclude accrued interest totaling $32 thousand and $60 thousand at September 30, 2014 and December 31, 2013, respectively. |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' |
Weighted average basic shares outstanding | 5,903 | 5,433 | 5,887 | 5,414 | ' |
Add: Potential common shares related to stock options | 41 | 46 | 42 | 43 | ' |
Potential common shares related to unvested restricted stock | 4 | 4 | 4 | 4 | ' |
Potential common shares related to warrants | 66 | 55 | 63 | 50 | ' |
Weighted average diluted shares outstanding | 6,014 | 5,538 | 5,996 | 5,511 | ' |
Net income | $5,378 | $4,004 | $15,079 | $11,925 | $14,270 |
Basic EPS (usd per share) | $0.91 | $0.74 | $2.56 | $2.20 | ' |
Diluted EPS (usd per share) | $0.89 | $0.72 | $2.51 | $2.16 | ' |
Weighted average anti-dilutive shares not included in the calculation of diluted EPS | 51 | 51 | 48 | 48 | ' |
Acquisition_Narrative_Details
Acquisition - Narrative (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 29, 2013 | Nov. 29, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Nov. 29, 2013 | |
NorCal Community Bancorp | NorCal Community Bancorp | NorCal Community Bancorp | NorCal Community Bancorp | NorCal Community Bancorp | ||||
branch | Core Deposits [Member] | Core Deposits [Member] | Core Deposits [Member] | Core Deposits [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Loans acquired | ' | ' | ' | $173,800,000 | ' | ' | ' | ' |
Deposits acquired | ' | ' | ' | 241,000,000 | ' | ' | ' | ' |
Investment securities | ' | ' | ' | 53,700,000 | ' | ' | ' | ' |
Number of branches acquired | ' | ' | ' | 4 | ' | ' | ' | ' |
Goodwill | 6,436,000 | ' | 6,436,000 | 6,400,000 | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' | ' | ' | 4,600,000 |
Amortization of core deposit intangible | $578,000 | $0 | ' | ' | ' | $578,000 | $69,000 | ' |
Period core deposit is amortized for income tax purposes | ' | ' | ' | ' | '10 years | ' | ' | ' |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities - Recorded on a Recurring Basis (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | $211,582 | $243,998 | ||
Derivative financial assets (interest rate contracts) | 313 | [1] | 961 | [1] |
Derivative financial liabilities (interest rate contracts) | 1,537 | [2] | 2,519 | [2] |
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 | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Number of securities | 1 | ' | ||
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) | 313 | 961 | ||
Derivative financial liabilities (interest rate contracts) | 1,537 | 2,519 | ||
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 | Significant Other Observable Inputs (Level 2) | Interest rate contract | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative financial assets (interest rate contracts) | 313 | 961 | ||
Derivative financial liabilities (interest rate contracts) | 1,537 | 2,519 | ||
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 | ||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 101,345 | 123,033 | ||
Increase in unrealized gain due to transfers to Level 3 | 8 | ' | ||
Mortgage-backed securities and collateralized 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] | ' | ' | ||
Available-for-sale, Fair Value | 169,903 | 190,604 | ||
Mortgage-backed securities and collateralized 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] | ' | ' | ||
Available-for-sale, Fair Value | 0 | 0 | ||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 167,160 | 190,604 | ||
Mortgage-backed securities and collateralized 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] | ' | ' | ||
Available-for-sale, Fair Value | 2,743 | 0 | ||
Debentures of government sponsored agencies | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 14,552 | 21,312 | ||
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] | ' | ' | ||
Available-for-sale, Fair Value | 14,552 | 21,312 | ||
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] | ' | ' | ||
Available-for-sale, Fair Value | 0 | 0 | ||
Debentures of government sponsored agencies | Assets and liabilities at fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 14,552 | 21,312 | ||
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] | ' | ' | ||
Available-for-sale, Fair Value | 0 | 0 | ||
Privately-issued collateralized mortgage obligations | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 7,843 | 10,874 | ||
Privately-issued collateralized mortgage obligations | 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] | ' | ' | ||
Available-for-sale, Fair Value | ' | 10,874 | ||
Privately-issued collateralized mortgage obligations | 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] | ' | ' | ||
Available-for-sale, Fair Value | 0 | 0 | ||
Privately-issued collateralized mortgage obligations | Assets and liabilities at fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 7,843 | 10,874 | ||
Privately-issued collateralized mortgage obligations | 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] | ' | ' | ||
Available-for-sale, Fair Value | 0 | 0 | ||
Obligations of state and political subdivisions | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | ' | 15,771 | ||
Obligations of state and political subdivisions | 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] | ' | ' | ||
Available-for-sale, Fair Value | 14,271 | 15,771 | ||
Obligations of state and political subdivisions | 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] | ' | ' | ||
Available-for-sale, Fair Value | 0 | 0 | ||
Obligations of state and political subdivisions | Assets and liabilities at fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 14,271 | 15,771 | ||
Obligations of state and political subdivisions | 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] | ' | ' | ||
Available-for-sale, Fair Value | 0 | 0 | ||
Corporate bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 5,013 | 5,437 | ||
Corporate bonds | 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] | ' | ' | ||
Available-for-sale, Fair Value | 5,013 | 5,437 | ||
Corporate bonds | 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] | ' | ' | ||
Available-for-sale, Fair Value | 0 | 0 | ||
Corporate bonds | Assets and liabilities at fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available-for-sale, Fair Value | 5,013 | 5,437 | ||
Corporate bonds | 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] | ' | ' | ||
Available-for-sale, Fair Value | $0 | $0 | ||
[1] | Amounts exclude accrued interest totaling $7 thousand and $10 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | |||
[2] | Amounts exclude accrued interest totaling $32 thousand and $60 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities - Recorded on Nonrecurring Basis (Details) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | $26,732 | $25,695 | ||
Specific valuation allowance for impaired loans | 1,333 | 1,989 | ||
Discount rate for selling costs applied to all properties | 6.00% | ' | ||
OREO acquired | 461 | 461 | ||
Changed in estimated value of OREO | 0 | ' | ||
Impaired loans | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Specific valuation allowance for impaired loans | 15 | 363 | ||
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 | 64 | [1] | 3,072 | [1] |
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 | 64 | 3,072 | ||
Construction | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired loans carried at fair value, carrying value | 6,665 | 6,733 | ||
Specific valuation allowance for impaired loans | 3 | 341 | ||
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 | ' | 3,037 | [1] | |
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 | ||
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 | ||
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 | ' | 3,037 | ||
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 | 1,803 | 1,862 | ||
Specific valuation allowance for impaired loans | 286 | 364 | ||
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 | 64 | [1] | 35 | [1] |
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 | $64 | $35 | ||
[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 $15 thousand and $363 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, 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 $) | 0 Months Ended | 0 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Nov. 29, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 29, 2013 | Nov. 29, 2013 | Nov. 29, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
debenture | Subordinated Debt | NorCal Community Bancorp Trust I | NorCal Community Bancorp Trust II | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | |||
Subordinated Debt | Subordinated Debt | Fair Value Hierarchy, Level 1 | Fair Value Hierarchy, Level 1 | Fair Value Hierarchy, Level 2 | Fair Value Hierarchy, Level 2 | Fair Value Hierarchy, Level 3 | Fair Value Hierarchy, Level 3 | Fair Value Hierarchy, Level 1 | Fair Value Hierarchy, Level 1 | Fair Value Hierarchy, Level 2 | Fair Value Hierarchy, Level 2 | Fair Value Hierarchy, Level 3 | Fair Value Hierarchy, Level 3 | |||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | $46,424 | $103,773 | ' | ' | ' | ' | $46,424 | $103,773 | ' | ' | ' | ' |
Investment securities held to maturity | ' | 121,177 | 123,858 | ' | ' | ' | ' | ' | 118,843 | 122,495 | ' | ' | ' | ' | 121,177 | 123,858 | ' | ' |
Loans, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,345,936 | 1,255,098 | ' | ' | ' | ' | 1,361,745 | 1,245,475 |
Interest receivable | ' | ' | ' | ' | ' | ' | ' | ' | 5,645 | 5,767 | ' | ' | ' | ' | 5,645 | 5,767 | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | ' | ' | ' | ' | ' | 1,571,624 | 1,587,102 | ' | ' | ' | ' | 1,572,582 | 1,588,278 | ' | ' |
Federal Home Loan Bank borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | 15,000 | ' | ' | ' | ' | 15,501 | 15,665 | ' | ' |
Subordinated debentures | ' | ' | ' | 4,950 | ' | ' | ' | ' | ' | ' | 5,131 | 4,969 | ' | ' | ' | ' | 5,187 | 4,950 |
Interest payable | ' | ' | ' | ' | ' | ' | ' | ' | $209 | $253 | ' | ' | ' | ' | $209 | $253 | ' | ' |
Subordinated Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subordinated debentures acquired | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on subordinated debentures | ' | ' | ' | ' | 3.05% | 1.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Illiquidity premium, percent | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_Securities_Amortize
Investment Securities - Amortized Cost and Fair Value (Details) (USD $) | 0 Months Ended | ||
Jan. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Held to maturity, Amortized Cost | ' | $118,843,000 | $122,495,000 |
Held to maturity, Fair Value | ' | 121,177,000 | 123,858,000 |
Held-to-maturity, Gross Unrealized Gains | ' | 2,427,000 | 2,139,000 |
Held-to-maturity, Total Securities in a loss position, Unrealized loss | ' | -93,000 | -776,000 |
Available-for-sale, Amortized Cost | ' | 210,676,000 | 245,158,000 |
Available-for-sale, Fair Value | ' | 211,582,000 | 243,998,000 |
Available-for-sale, Gross Unrealized Gains | ' | 1,631,000 | 1,833,000 |
Available-for-sale, Gross Unrealized Losses | ' | -725,000 | -2,993,000 |
Total investment securities, Amortized Cost | ' | 329,519,000 | 367,653,000 |
Total investment securities, Fair Value | ' | 332,759,000 | 367,856,000 |
Available-for-sale Securities and Held-to-maturity Securities, Gross Unrealized Gains | ' | 4,058,000 | 3,972,000 |
Available-for-sale Securities and Held-to-maturity Securities, Gross Unrealized Losses | ' | -818,000 | -3,769,000 |
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 | ' | 100,978,000 | 124,063,000 |
Available-for-sale, Fair Value | ' | 101,345,000 | 123,033,000 |
Available-for-sale, Gross Unrealized Gains | ' | 555,000 | 616,000 |
Available-for-sale, Gross Unrealized Losses | ' | -188,000 | -1,646,000 |
Available-for-sale securities transferred to held-to-maturity | 14,200,000 | ' | ' |
Available-for-sale securities transferred to held-to-maturity, unrealized pre-tax holding gain | 84,000 | ' | ' |
CMOs issued by FNMA | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Available-for-sale, Amortized Cost | ' | 15,608,000 | 18,573,000 |
Available-for-sale, Fair Value | ' | 15,600,000 | 18,438,000 |
Available-for-sale, Gross Unrealized Gains | ' | 65,000 | 60,000 |
Available-for-sale, Gross Unrealized Losses | ' | -73,000 | -195,000 |
CMOs issued by FHLMC | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Available-for-sale, Amortized Cost | ' | 33,288,000 | 23,710,000 |
Available-for-sale, Fair Value | ' | 33,243,000 | 23,679,000 |
Available-for-sale, Gross Unrealized Gains | ' | 96,000 | 144,000 |
Available-for-sale, Gross Unrealized Losses | ' | -141,000 | -175,000 |
CMOs issued by GNMA | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Available-for-sale, Amortized Cost | ' | 19,359,000 | 24,944,000 |
Available-for-sale, Fair Value | ' | 19,715,000 | 25,454,000 |
Available-for-sale, Gross Unrealized Gains | ' | 364,000 | 609,000 |
Available-for-sale, Gross Unrealized Losses | ' | -8,000 | -99,000 |
Debentures of government sponsored agencies | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Available-for-sale, Amortized Cost | ' | 14,727,000 | 21,845,000 |
Available-for-sale, Fair Value | ' | 14,552,000 | 21,312,000 |
Available-for-sale, Gross Unrealized Gains | ' | 111,000 | 108,000 |
Available-for-sale, Gross Unrealized Losses | ' | -286,000 | -641,000 |
Privately-issued CMOs | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Available-for-sale, Amortized Cost | ' | 7,627,000 | 10,649,000 |
Available-for-sale, Fair Value | ' | 7,843,000 | 10,874,000 |
Available-for-sale, Gross Unrealized Gains | ' | 220,000 | 257,000 |
Available-for-sale, Gross Unrealized Losses | ' | -4,000 | -32,000 |
Obligations of state and political subdivisions | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Available-for-sale, Amortized Cost | ' | 14,156,000 | 15,948,000 |
Available-for-sale, Fair Value | ' | ' | 15,771,000 |
Available-for-sale, Gross Unrealized Gains | ' | 137,000 | 14,000 |
Available-for-sale, Gross Unrealized Losses | ' | -22,000 | -191,000 |
Corporate bonds | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Available-for-sale, Amortized Cost | ' | 4,933,000 | 5,426,000 |
Available-for-sale, Fair Value | ' | 5,013,000 | 5,437,000 |
Available-for-sale, Gross Unrealized Gains | ' | 83,000 | 25,000 |
Available-for-sale, Gross Unrealized Losses | ' | -3,000 | -14,000 |
Obligations of state and political subdivisions | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Held to maturity, Amortized Cost | ' | 65,089,000 | 80,381,000 |
Held to maturity, Fair Value | ' | 66,943,000 | 81,429,000 |
Held-to-maturity, Gross Unrealized Gains | ' | 1,935,000 | 1,764,000 |
Held-to-maturity, Total Securities in a loss position, Unrealized loss | ' | -81,000 | -716,000 |
Corporate bonds | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Held to maturity, Amortized Cost | ' | 40,363,000 | 42,114,000 |
Held to maturity, Fair Value | ' | 40,691,000 | 42,429,000 |
Held-to-maturity, Gross Unrealized Gains | ' | 340,000 | 375,000 |
Held-to-maturity, Total Securities in a loss position, Unrealized loss | ' | -12,000 | -60,000 |
MBS pass-through securities issued by FNMA and FHLMC | ' | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' | ' |
Held to maturity, Amortized Cost | ' | 13,391,000 | 0 |
Held to maturity, Fair Value | ' | 13,543,000 | 0 |
Held-to-maturity, Gross Unrealized Gains | ' | 152,000 | 0 |
Held-to-maturity, Total Securities in a loss position, Unrealized loss | ' | $0 | $0 |
Investment_Securities_Maturiti
Investment Securities - Maturities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Held to Maturity, Amortized Cost, Within one year | $25,111 | $8,731 |
Held to Maturity, Amortized Cost, After one but within five years | 63,192 | 88,255 |
Held to Maturity, Amortized Cost, After five years through ten years | 15,900 | 24,244 |
Held to Maturity, Amortized Cost, After ten years | 14,640 | 1,265 |
Held to Maturity, Amortized Cost, Total | 118,843 | 122,495 |
Available for Sale Securities, Amortized Cost, Within one year | 2,377 | 5,522 |
Available for Sale, Amortized Cost, After one but within five years | 39,599 | 42,229 |
Available for Sale, Amortized Cost, After five years through ten years | 19,241 | 26,232 |
Available for Sale, Amortized Cost, After ten years | 149,459 | 171,175 |
Available for Sale, Amortized Cost, Total | 210,676 | 245,158 |
Held to Maturity, Fair Value, Within one year | 25,272 | 8,784 |
Held to Maturity, Fair Value, After one but within five years | 64,436 | 89,095 |
Held to Maturity, Fair Value, After five years through ten years | 16,669 | 24,786 |
Held to Maturity, Fair Value, After ten years | 14,800 | 1,193 |
Held to maturity, Fair Value | 121,177 | 123,858 |
Available for Sale, Fair Value, Within one year | 2,389 | 5,521 |
Available for Sale, Fair Value, After one but within five years | 39,793 | 42,338 |
Available for Sale, Fair Value, After five years through ten years | 19,031 | 25,478 |
Available for Sale, Fair Value, After ten years | 150,369 | 170,661 |
Available for Sale, Fair Value, Total | $211,582 | $243,998 |
Investment_Securities_Securiti
Investment Securities - Securities Sold and Pledged as Collateral (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||
Jan. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
State of California | State of California | Public Deposits | Public Deposits | Trust Deposits | Trust Deposits | Internal checking account | Internal checking account | Available-for-sale Securities | Available-for-sale Securities | Held-to-maturity Securities | ||||
security | security | security | ||||||||||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of securities sold during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 6 |
Proceeds from sale of available-for-sale securities | ' | $2,435,000 | $2,220,000 | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000 | ' | ' |
Proceeds from sale of held-to-maturity securities | ' | 2,146,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on sale of available-for-sale securities sold | ' | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of held-to-maturity securities | ' | 104,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of available-for-sale securities sold | 339 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale securities pledged as collateral | ' | ' | ' | $67,400,000 | $61,800,000 | $66,500,000 | $61,100,000 | $860,000 | $732,000 | $1,100,000 | $1,100,000 | ' | ' | ' |
Investment_Securities_Investme
Investment Securities - Investment Securities in Unrealized Loss Positions (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 | 28 | 95 |
Number of investment securities in unrealized loss position longer than 12 months | 5 | ' |
Number of investment securities in unrealized loss position less than 12 months | 23 | ' |
Held-to-maturity, less than 12 continuous months, Fair value | $5,636 | $16,950 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | -27 | -430 |
Held-to-maturity, greater than 12 continuous months, Fair value | 7,830 | 13,996 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | -66 | -346 |
Held-to-maturity, Total Securities in a loss position, Fair value | 13,466 | 30,946 |
Held-to-maturity, Total Securities in a loss position, Unrealized loss | -93 | -776 |
Available-for-sale, less than 12 continuous months, Fair value | 56,980 | 164,815 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -441 | -2,643 |
Available-for-sale, greater than 12 continuous months, Fair value | 9,717 | 3,331 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | -284 | -350 |
Available-for-sale, Total Securities in a loss position, Fair Value | 66,697 | 168,146 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -725 | -2,993 |
Marketable securities, less than 12 continuous months, Fair value | 62,616 | 181,765 |
Marketable securities, less than 12 continuous months, Unrealized loss | -468 | -3,073 |
Marketable securities, greater than 12 continuous months, Fair value | 17,547 | 17,327 |
Marketable securities, greater than 12 continuous months, Unrealized loss | -350 | -696 |
Marketable securities, Total Securities in a loss position, Fair value | 80,163 | 199,092 |
Marketable securities, Total Securities in a loss position, Unrealized loss | -818 | -3,769 |
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 | 20,670 | 90,914 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -188 | -1,297 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 3,172 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | -349 |
Available-for-sale, Total Securities in a loss position, Fair Value | 20,670 | 94,086 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -188 | -1,646 |
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 | 4,346 | 17,535 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -73 | -195 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 0 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | 4,346 | 17,535 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -73 | -195 |
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 | 23,886 | 17,899 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -141 | -175 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 0 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | 23,886 | 17,899 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -141 | -175 |
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 | 3,474 | 3,966 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -8 | -99 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 0 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | 3,474 | 3,966 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -8 | -99 |
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 | 493 | 16,872 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -2 | -641 |
Available-for-sale, greater than 12 continuous months, Fair value | 9,717 | 0 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | -284 | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | 10,210 | 16,872 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -286 | -641 |
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 | 318 | 4,634 |
Available-for-sale, less than 12 continuous months, Unrealized loss | -4 | -31 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 159 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | -1 |
Available-for-sale, Total Securities in a loss position, Fair Value | 318 | 4,793 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -4 | -32 |
Obligations of state and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available-for-sale, less than 12 continuous months, Fair value | 2,804 | ' |
Available-for-sale, less than 12 continuous months, Unrealized loss | -22 | ' |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | ' |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | ' |
Available-for-sale, Total Securities in a loss position, Fair Value | 2,804 | ' |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -22 | ' |
Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ' | ' |
Available-for-sale, less than 12 continuous months, Fair value | 989 | ' |
Available-for-sale, less than 12 continuous months, Unrealized loss | -3 | ' |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | ' |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | ' |
Available-for-sale, Total Securities in a loss position, Fair Value | 989 | ' |
Available-for-sale, Total Securities in a loss position, Unrealized loss | -3 | ' |
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 | 5,636 | 13,933 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | -27 | -419 |
Held-to-maturity, greater than 12 continuous months, Fair value | 4,280 | 9,033 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | -54 | -297 |
Held-to-maturity, Total Securities in a loss position, Fair value | 9,916 | 22,966 |
Held-to-maturity, Total Securities in a loss position, Unrealized loss | -81 | -716 |
Available-for-sale, less than 12 continuous months, Fair value | ' | 11,516 |
Available-for-sale, less than 12 continuous months, Unrealized loss | ' | -191 |
Available-for-sale, greater than 12 continuous months, Fair value | ' | 0 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | ' | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | ' | 11,516 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | ' | -191 |
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 | 0 | 3,017 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | 0 | -11 |
Held-to-maturity, greater than 12 continuous months, Fair value | 3,550 | 4,963 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | -12 | -49 |
Held-to-maturity, Total Securities in a loss position, Fair value | 3,550 | 7,980 |
Held-to-maturity, Total Securities in a loss position, Unrealized loss | -12 | -60 |
Available-for-sale, less than 12 continuous months, Fair value | ' | 1,479 |
Available-for-sale, less than 12 continuous months, Unrealized loss | ' | -14 |
Available-for-sale, greater than 12 continuous months, Fair value | ' | 0 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | ' | 0 |
Available-for-sale, Total Securities in a loss position, Fair Value | ' | 1,479 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | ' | ($14) |
Investment_Securities_NonMarke
Investment Securities - Non-Marketable Securities (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Schedule of Cost-method Investments [Line Items] | ' | ' |
Federal Home Loan Bank stock, par value | $100 | ' |
Federal Home Loan Bank, dividend rate percentage | 7.40% | ' |
Carrying value of securities carried at cost | $0 | ' |
Conversion ratio for common stock | 0.4206 | ' |
Investments in low income housing tax credit funds | 1,800,000 | 1,000,000 |
Low income housing amortization that was recognized as tax credit | 40,000 | ' |
Visa Inc. Class B common stock | ' | ' |
Schedule of Cost-method Investments [Line Items] | ' | ' |
Number of shares of securities carried at cost | 16,939 | ' |
Fair value of Class B common stock | 1,500,000 | 1,600,000 |
Other assets | ' | ' |
Schedule of Cost-method Investments [Line Items] | ' | ' |
Federal Home Loan Bank stock | $8,200,000 | $7,800,000 |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses - Loans Outstanding and Aging Analysis (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
loans | loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | $282,000 | $992,000 | ||
60 to 89 Days Past Due | 17,000 | 3,000 | ||
Greater than 90 days past due (non-accrual) | 9,838,000 | [1] | 11,678,000 | [1] |
Total past due | 10,137,000 | 12,673,000 | ||
Current | 1,350,848,000 | 1,256,649,000 | ||
Total loans | 1,360,985,000 | [2] | 1,269,322,000 | [2] |
Non-accrual loans to total loans | 0.70% | 0.90% | ||
Purchased Credit Impaired (PCI) loans no longer accreting interest | 1,400,000 | 1,400,000 | ||
Purchased Credit-impaired (PCI) loans accreting interest | 3,800,000 | 5,700,000 | ||
Number of accruing loans past due more than ninety days | 0 | 0 | ||
Deferred loan fees | 406,000 | 24,000 | ||
Unaccreted purchase discounts on non-PCI loans | 4,900,000 | 7,600,000 | ||
Commercial and industrial | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 3,000 | 18,000 | ||
60 to 89 Days Past Due | 0 | 0 | ||
Greater than 90 days past due (non-accrual) | 193,000 | [1] | 1,187,000 | [1] |
Total past due | 196,000 | 1,205,000 | ||
Current | 201,320,000 | 182,086,000 | ||
Total loans | 201,516,000 | [2] | 183,291,000 | [2] |
Non-accrual loans to total loans | 0.10% | 0.60% | ||
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 | 233,090,000 | 239,710,000 | ||
Total loans | 234,493,000 | [2] | 241,113,000 | [2] |
Non-accrual loans to total loans | 0.60% | 0.60% | ||
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) | 2,505,000 | [1] | 2,807,000 | [1] |
Total past due | 2,505,000 | 2,807,000 | ||
Current | 671,923,000 | 622,212,000 | ||
Total loans | 674,428,000 | [2] | 625,019,000 | [2] |
Non-accrual loans to total loans | 0.40% | 0.40% | ||
Minimum principal amount of an investor commercial real estate loan that requires annual proof of income | 500,000 | ' | ||
Construction | ' | ' | ||
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) | 5,173,000 | [1] | 5,218,000 | [1] |
Total past due | 5,173,000 | 5,218,000 | ||
Current | 40,775,000 | 26,359,000 | ||
Total loans | 45,948,000 | [2] | 31,577,000 | [2] |
Non-accrual loans to total loans | 11.30% | 16.50% | ||
Home equity | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 0 | 240,000 | ||
60 to 89 Days Past Due | 0 | 0 | ||
Greater than 90 days past due (non-accrual) | 436,000 | [1] | 234,000 | [1] |
Total past due | 436,000 | 474,000 | ||
Current | 109,219,000 | 97,995,000 | ||
Total loans | 109,655,000 | [2] | 98,469,000 | [2] |
Non-accrual loans to total loans | 0.40% | 0.20% | ||
Other residential | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 0 | [3] | 717,000 | [3] |
60 to 89 Days Past Due | 0 | [3] | 0 | [3] |
Greater than 90 days past due (non-accrual) | 0 | [1],[3] | 660,000 | [1],[3] |
Total past due | 0 | [3] | 1,377,000 | [3] |
Current | 75,992,000 | [3] | 71,257,000 | [3] |
Total loans | 75,992,000 | [2],[3] | 72,634,000 | [2],[3] |
Non-accrual loans to total loans | 0.00% | [3] | 0.90% | [3] |
Installment and other consumer | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
30 to 59 Days Past Due | 279,000 | 17,000 | ||
60 to 89 Days Past Due | 17,000 | 3,000 | ||
Greater than 90 days past due (non-accrual) | 128,000 | [1] | 169,000 | [1] |
Total past due | 424,000 | 189,000 | ||
Current | 18,529,000 | 17,030,000 | ||
Total loans | $18,953,000 | [2] | $17,219,000 | [2] |
Non-accrual loans to total loans | 0.70% | 1.00% | ||
[1] | Amounts include $1.4 million of Purchased Credit Impaired ("PCI") loans that had stopped accreting interest at both SeptemberB 30, 2014 and DecemberB 31, 2013, and exclude accreting PCI loans of $3.8 million and $5.7 million at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively, as their accretable yield interest recognition is independent from the underlying contractual loan delinquency status. There were no accruing loans more than ninety days past due at SeptemberB 30, 2014 or DecemberB 31, 2013. | |||
[2] | Amounts include net deferred loan costs of $406 thousand and $24 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $4.9 million and $7.6 million at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | |||
[3] | Our residential loan portfolio includes no sub-prime loans, nor is it our 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, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Purchase credit-impaired | $5,193 | $7,115 | ||
Total loans | 1,360,985 | [1] | 1,269,322 | [1] |
Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 201,182 | 182,958 | ||
Purchase credit-impaired | 334 | 333 | ||
Total loans | 201,516 | [1] | 183,291 | [1] |
Commercial real estate, owner-occupied | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 231,897 | 236,294 | ||
Purchase credit-impaired | 2,596 | 4,853 | ||
Total loans | 234,493 | [1] | 241,113 | [1] |
Commercial real estate, investor | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 672,243 | 623,140 | ||
Purchase credit-impaired | 2,185 | 1,845 | ||
Total loans | 674,428 | [1] | 625,019 | [1] |
Construction | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 45,937 | 31,562 | ||
Purchase credit-impaired | 11 | 15 | ||
Total loans | 45,948 | [1] | 31,577 | [1] |
Home equity | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 109,588 | 98,400 | ||
Purchase credit-impaired | 67 | 69 | ||
Total loans | 109,655 | [1] | 98,469 | [1] |
Other residential | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Purchase credit-impaired | 0 | 0 | ||
Total loans | 75,992 | [1],[2] | 72,634 | [1],[2] |
Installment and other consumer | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Purchase credit-impaired | 0 | 0 | ||
Total loans | 18,953 | [1] | 17,219 | [1] |
Pass | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Purchase credit-impaired | 2,203 | 1,340 | ||
Total loans | 1,288,435 | 1,194,032 | ||
Pass | Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 186,922 | 162,625 | ||
Pass | Commercial real estate, owner-occupied | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 209,600 | 216,537 | ||
Pass | Commercial real estate, investor | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 654,889 | 609,157 | ||
Pass | Construction | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 39,358 | 25,069 | ||
Pass | Home equity | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 104,794 | 93,792 | ||
Pass | Other residential | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 72,732 | 69,176 | ||
Pass | Installment and other consumer | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 17,937 | 16,336 | ||
Special Mention | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Purchase credit-impaired | 1,146 | 894 | ||
Total loans | 33,551 | 44,150 | ||
Special Mention | Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 7,749 | 13,990 | ||
Special Mention | Commercial real estate, owner-occupied | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 10,471 | 16,533 | ||
Special Mention | Commercial real estate, investor | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 9,359 | 8,570 | ||
Special Mention | Construction | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 856 | 725 | ||
Special Mention | Home equity | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 1,849 | 2,164 | ||
Special Mention | Other residential | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 1,704 | 1,047 | ||
Special Mention | Installment and other consumer | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 417 | 227 | ||
Substandard | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Purchase credit-impaired | 1,844 | 4,881 | ||
Total loans | 38,999 | 31,140 | ||
Substandard | Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 6,511 | 6,343 | ||
Substandard | Commercial real estate, owner-occupied | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 11,826 | 3,224 | ||
Substandard | Commercial real estate, investor | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 7,995 | 5,413 | ||
Substandard | Construction | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 5,723 | 5,768 | ||
Substandard | Home equity | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans excluding purchased credit-impaired loans | 2,945 | 2,444 | ||
Substandard | Other residential | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | 1,556 | 2,411 | ||
Substandard | Installment and other consumer | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Total loans | $599 | $656 | ||
[1] | Amounts include net deferred loan costs of $406 thousand and $24 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $4.9 million and $7.6 million at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | |||
[2] | Our residential loan portfolio includes no sub-prime loans, nor is it our 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, 2014 | Dec. 31, 2013 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | $23,988,000 | [1] | $20,581,000 | [1] |
TDR loans accruing interest as of period end | 16,900,000 | 12,900,000 | ||
TDR loans acquired | 1,800,000 | 1,800,000 | ||
Commercial and industrial | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 4,337,000 | 5,117,000 | ||
Commercial real estate, owner-occupied | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 8,491,000 | 4,333,000 | ||
Commercial real estate, investor | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 527,000 | 534,000 | ||
Construction | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 6,654,000 | 6,335,000 | ||
Home equity | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 703,000 | 506,000 | ||
Other residential | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | 1,552,000 | 2,063,000 | ||
Installment and other consumer | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Recorded investment in Troubled Debt Restructurings | $1,724,000 | $1,693,000 | ||
[1] | Includes $16.9 million and $12.9 million of TDR loans that were accruing interest as of SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. Includes $1.8 million of acquired loans at both SeptemberB 30, 2014 and DecemberB 31, 2013, 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 | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
contract | contract | contract | loans | |
loans | contract | |||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts Modified | 5 | 7 | 17 | 10 |
Pre-modification recorded investment | $5,628 | $4,098 | $6,882 | $9,342 |
Post-modification recorded investment | 5,700 | 4,063 | 6,992 | 9,326 |
Post-Modification Outstanding Recorded Investment at period end | 5,690 | 4,054 | 6,943 | 9,293 |
Number of troubled debt restructurings | ' | ' | 0 | 0 |
Commercial and industrial | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts Modified | 2 | 3 | 7 | 5 |
Pre-modification recorded investment | 513 | 587 | 1,336 | 1,086 |
Post-modification recorded investment | 596 | 560 | 1,460 | 1,057 |
Post-Modification Outstanding Recorded Investment at period end | 596 | 558 | 1,431 | 991 |
Number of contracts modified and subsequently paid off | ' | ' | 1 | 2 |
Contracts modified and subsequently paid off, pre-modification | ' | ' | 905 | 218 |
Contracts modified and subsequently paid off, post-modification | ' | ' | 905 | 218 |
Commercial real estate, owner-occupied | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts Modified | 1 | 1 | ' | 1 |
Pre-modification recorded investment | 4,226 | 2,961 | ' | 2,961 |
Post-modification recorded investment | 4,216 | 2,956 | ' | 2,956 |
Post-Modification Outstanding Recorded Investment at period end | 4,206 | 2,951 | ' | 2,951 |
Commercial real estate, investor | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts Modified | ' | 1 | ' | 1 |
Pre-modification recorded investment | ' | 539 | ' | 539 |
Post-modification recorded investment | ' | 538 | ' | 538 |
Post-Modification Outstanding Recorded Investment at period end | ' | 536 | ' | 536 |
Home equity | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts Modified | 1 | ' | 2 | ' |
Pre-modification recorded investment | 74 | ' | 224 | ' |
Post-modification recorded investment | 74 | ' | 224 | ' |
Post-Modification Outstanding Recorded Investment at period end | 74 | ' | 222 | ' |
Other residential | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts Modified | 1 | ' | 1 | ' |
Pre-modification recorded investment | 815 | ' | 815 | ' |
Post-modification recorded investment | 814 | ' | 814 | ' |
Post-Modification Outstanding Recorded Investment at period end | 814 | ' | 814 | ' |
Construction | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts Modified | ' | 2 | ' | 1 |
Pre-modification recorded investment | ' | 11 | ' | 4,745 |
Post-modification recorded investment | ' | 9 | ' | 4,766 |
Post-Modification Outstanding Recorded Investment at period end | ' | 9 | ' | 4,806 |
Installment and other consumer | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts Modified | ' | ' | 6 | 2 |
Pre-modification recorded investment | ' | ' | 281 | 11 |
Post-modification recorded investment | ' | ' | 278 | 9 |
Post-Modification Outstanding Recorded Investment at period end | ' | ' | $270 | $9 |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Losses - Impaired Loans and Related Allowance (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Recorded investment in impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | $16,344,000 | ' | $16,344,000 | ' | $10,242,000 |
With a specific allowance recorded | 10,388,000 | ' | 10,388,000 | ' | 15,453,000 |
Total recorded investment in impaired loans | 26,732,000 | ' | 26,732,000 | ' | 25,695,000 |
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 23,214,000 | ' | 23,214,000 | ' | 17,160,000 |
With a specific allowance recorded | 10,674,000 | ' | 10,674,000 | ' | 16,848,000 |
Total unpaid principal balance of impaired loans | 33,888,000 | ' | 33,888,000 | ' | 34,008,000 |
Specific valuation | 1,333,000 | ' | 1,333,000 | ' | 1,989,000 |
Average recorded investment in impaired loans during the period | 26,186,000 | 29,520,000 | 25,884,000 | 29,408,000 | ' |
Interest income recognized on impaired loans during the period ended | 210,000 | 236,000 | 743,000 | 895,000 | ' |
Gross interest income that would have been recorded had nonaccrual loans been current | 182,000 | 291,000 | 567,000 | 827,000 | ' |
Charged-off portion of impaired loans | 5,500,000 | ' | 5,500,000 | ' | ' |
Outstanding commitments to extend credit on impaired loans | 1,185,000 | ' | 1,185,000 | ' | ' |
Commercial and industrial | ' | ' | ' | ' | ' |
Recorded investment in impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 1,212,000 | ' | 1,212,000 | ' | 977,000 |
With a specific allowance recorded | 3,125,000 | ' | 3,125,000 | ' | 4,725,000 |
Total recorded investment in impaired loans | 4,337,000 | ' | 4,337,000 | ' | 5,702,000 |
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 1,258,000 | ' | 1,258,000 | ' | 977,000 |
With a specific allowance recorded | 3,220,000 | ' | 3,220,000 | ' | 4,930,000 |
Total unpaid principal balance of impaired loans | 4,478,000 | ' | 4,478,000 | ' | 5,907,000 |
Specific valuation | 817,000 | ' | 817,000 | ' | 1,170,000 |
Average recorded investment in impaired loans during the period | 5,292,000 | 5,933,000 | 5,818,000 | 7,584,000 | ' |
Interest income recognized on impaired loans during the period ended | 88,000 | 102,000 | 309,000 | 343,000 | ' |
Commercial real estate, owner-occupied | ' | ' | ' | ' | ' |
Recorded investment in impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 5,609,000 | ' | 5,609,000 | ' | 1,403,000 |
With a specific allowance recorded | 2,882,000 | ' | 2,882,000 | ' | 4,085,000 |
Total recorded investment in impaired loans | 8,491,000 | ' | 8,491,000 | ' | 5,488,000 |
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 7,266,000 | ' | 7,266,000 | ' | 3,060,000 |
With a specific allowance recorded | 2,882,000 | ' | 2,882,000 | ' | 5,088,000 |
Total unpaid principal balance of impaired loans | 10,148,000 | ' | 10,148,000 | ' | 8,148,000 |
Specific valuation | 100,000 | ' | 100,000 | ' | 90,000 |
Average recorded investment in impaired loans during the period | 6,982,000 | 3,526,000 | 5,980,000 | 2,861,000 | ' |
Interest income recognized on impaired loans during the period ended | 54,000 | 63,000 | 220,000 | 170,000 | ' |
Commercial real estate, investor | ' | ' | ' | ' | ' |
Recorded investment in impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 3,032,000 | ' | 3,032,000 | ' | 3,341,000 |
With a specific allowance recorded | 0 | ' | 0 | ' | 0 |
Total recorded investment in impaired loans | 3,032,000 | ' | 3,032,000 | ' | 3,341,000 |
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 5,023,000 | ' | 5,023,000 | ' | 5,333,000 |
With a specific allowance recorded | 0 | ' | 0 | ' | 0 |
Total unpaid principal balance of impaired loans | 5,023,000 | ' | 5,023,000 | ' | 5,333,000 |
Specific valuation | 0 | ' | 0 | ' | 0 |
Average recorded investment in impaired loans during the period | 3,090,000 | 6,389,000 | 3,186,000 | 6,178,000 | ' |
Interest income recognized on impaired loans during the period ended | 7,000 | 7,000 | 21,000 | 7,000 | ' |
Construction | ' | ' | ' | ' | ' |
Recorded investment in impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 5,173,000 | ' | 5,173,000 | ' | 2,806,000 |
With a specific allowance recorded | 1,492,000 | ' | 1,492,000 | ' | 3,927,000 |
Total recorded investment in impaired loans | 6,665,000 | ' | 6,665,000 | ' | 6,733,000 |
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 7,863,000 | ' | 7,863,000 | ' | 5,547,000 |
With a specific allowance recorded | 1,682,000 | ' | 1,682,000 | ' | 4,114,000 |
Total unpaid principal balance of impaired loans | 9,545,000 | ' | 9,545,000 | ' | 9,661,000 |
Specific valuation | 3,000 | ' | 3,000 | ' | 341,000 |
Average recorded investment in impaired loans during the period | 6,678,000 | 8,479,000 | 6,568,000 | 7,138,000 | ' |
Interest income recognized on impaired loans during the period ended | 23,000 | 21,000 | 67,000 | 233,000 | ' |
Home equity | ' | ' | ' | ' | ' |
Recorded investment in impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 550,000 | ' | 550,000 | ' | 349,000 |
With a specific allowance recorded | 302,000 | ' | 302,000 | ' | 157,000 |
Total recorded investment in impaired loans | 852,000 | ' | 852,000 | ' | 506,000 |
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 1,036,000 | ' | 1,036,000 | ' | 835,000 |
With a specific allowance recorded | 302,000 | ' | 302,000 | ' | 157,000 |
Total unpaid principal balance of impaired loans | 1,338,000 | ' | 1,338,000 | ' | 992,000 |
Specific valuation | 29,000 | ' | 29,000 | ' | 1,000 |
Average recorded investment in impaired loans during the period | 857,000 | 775,000 | 730,000 | 1,022,000 | ' |
Interest income recognized on impaired loans during the period ended | 5,000 | 5,000 | 14,000 | 25,000 | ' |
Other residential | ' | ' | ' | ' | ' |
Recorded investment in impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 528,000 | ' | 528,000 | ' | 1,254,000 |
With a specific allowance recorded | 1,024,000 | ' | 1,024,000 | ' | 809,000 |
Total recorded investment in impaired loans | 1,552,000 | ' | 1,552,000 | ' | 2,063,000 |
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 528,000 | ' | 528,000 | ' | 1,254,000 |
With a specific allowance recorded | 1,024,000 | ' | 1,024,000 | ' | 809,000 |
Total unpaid principal balance of impaired loans | 1,552,000 | ' | 1,552,000 | ' | 2,063,000 |
Specific valuation | 98,000 | ' | 98,000 | ' | 23,000 |
Average recorded investment in impaired loans during the period | 1,440,000 | 2,576,000 | 1,726,000 | 2,744,000 | ' |
Interest income recognized on impaired loans during the period ended | 14,000 | 22,000 | 56,000 | 67,000 | ' |
Installment and other consumer | ' | ' | ' | ' | ' |
Recorded investment in impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 240,000 | ' | 240,000 | ' | 112,000 |
With a specific allowance recorded | 1,563,000 | ' | 1,563,000 | ' | 1,750,000 |
Total recorded investment in impaired loans | 1,803,000 | ' | 1,803,000 | ' | 1,862,000 |
Unpaid principal balance of impaired loans: | ' | ' | ' | ' | ' |
With no specific allowance recorded | 240,000 | ' | 240,000 | ' | 154,000 |
With a specific allowance recorded | 1,564,000 | ' | 1,564,000 | ' | 1,750,000 |
Total unpaid principal balance of impaired loans | 1,804,000 | ' | 1,804,000 | ' | 1,904,000 |
Specific valuation | 286,000 | ' | 286,000 | ' | 364,000 |
Average recorded investment in impaired loans during the period | 1,847,000 | 1,842,000 | 1,876,000 | 1,881,000 | ' |
Interest income recognized on impaired loans during the period ended | $19,000 | $16,000 | $56,000 | $50,000 | ' |
Loans_and_Allowance_for_Loan_L7
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | $14,900,000 | $14,357,000 | $14,224,000 | $13,661,000 | ' | |||
Provision for loan losses | 0 | -480,000 | 750,000 | 390,000 | ' | |||
Charge-offs | -2,000 | -154,000 | -276,000 | -847,000 | ' | |||
Recoveries | 151,000 | 85,000 | 351,000 | 604,000 | ' | |||
Ending balance | 15,049,000 | 13,808,000 | 15,049,000 | 13,808,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 13,716,000 | ' | 13,716,000 | ' | 12,235,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 1,327,000 | ' | 1,327,000 | ' | 1,747,000 | |||
Ending ALLL related to purchased credit-impaired loans | 6,000 | ' | 6,000 | ' | 242,000 | |||
Collectively evaluated for impairment | 1,330,772,000 | ' | 1,330,772,000 | ' | 1,239,364,000 | |||
Individually evaluated for impairment | 25,020,000 | [1] | ' | 25,020,000 | [1] | ' | 22,843,000 | [2] |
Purchase credit-impaired | 5,193,000 | ' | 5,193,000 | ' | 7,115,000 | |||
Total loans | 1,360,985,000 | [3] | ' | 1,360,985,000 | [3] | ' | 1,269,322,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.11% | ' | 1.11% | ' | 1.12% | |||
Allowance for loan losses to non-accrual loans | 153.00% | ' | 153.00% | ' | 122.00% | |||
PCI loans impaired post-acquisition | 1,700,000 | ' | 1,700,000 | ' | 2,900,000 | |||
Commercial and industrial | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | 3,125,000 | 3,799,000 | 3,056,000 | 4,100,000 | ' | |||
Provision for loan losses | -263,000 | -965,000 | -208,000 | -1,204,000 | ' | |||
Charge-offs | 0 | -129,000 | -66,000 | -586,000 | ' | |||
Recoveries | 44,000 | 75,000 | 124,000 | 470,000 | ' | |||
Ending balance | 2,906,000 | 2,780,000 | 2,906,000 | 2,780,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 2,089,000 | ' | 2,089,000 | ' | 1,886,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 814,000 | ' | 814,000 | ' | 987,000 | |||
Ending ALLL related to purchased credit-impaired loans | 3,000 | ' | 3,000 | ' | 183,000 | |||
Collectively evaluated for impairment | 197,143,000 | ' | 197,143,000 | ' | 177,550,000 | |||
Individually evaluated for impairment | 4,039,000 | [1] | ' | 4,039,000 | [1] | ' | 5,408,000 | [2] |
Purchase credit-impaired | 334,000 | ' | 334,000 | ' | 333,000 | |||
Total loans | 201,516,000 | [3] | ' | 201,516,000 | [3] | ' | 183,291,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.44% | ' | 1.44% | ' | 1.67% | |||
Allowance for loan losses to non-accrual loans | 868.00% | ' | 868.00% | ' | 257.00% | |||
Commercial real estate, owner-occupied | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | 1,979,000 | 1,406,000 | 2,012,000 | 1,313,000 | ' | |||
Provision for loan losses | 9,000 | 427,000 | -24,000 | 436,000 | ' | |||
Charge-offs | 0 | 0 | 0 | 0 | ' | |||
Recoveries | 5,000 | 0 | 5,000 | 84,000 | ' | |||
Ending balance | 1,993,000 | 1,833,000 | 1,993,000 | 1,833,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 1,893,000 | ' | 1,893,000 | ' | 1,922,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 100,000 | ' | 100,000 | ' | 31,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | 0 | ' | 59,000 | |||
Collectively evaluated for impairment | 224,809,000 | ' | 224,809,000 | ' | 233,330,000 | |||
Individually evaluated for impairment | 7,088,000 | [1] | ' | 7,088,000 | [1] | ' | 2,930,000 | [2] |
Purchase credit-impaired | 2,596,000 | ' | 2,596,000 | ' | 4,853,000 | |||
Total loans | 234,493,000 | [3] | ' | 234,493,000 | [3] | ' | 241,113,000 | [3] |
Ratio of allowance for loan losses to total loans | 0.85% | ' | 0.85% | ' | 0.83% | |||
Allowance for loan losses to non-accrual loans | 142.00% | ' | 142.00% | ' | 143.00% | |||
Commercial real estate, investor | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | 6,713,000 | 4,368,000 | 6,196,000 | 4,372,000 | ' | |||
Provision for loan losses | -26,000 | 1,338,000 | 455,000 | 1,308,000 | ' | |||
Charge-offs | 0 | 0 | 0 | 0 | ' | |||
Recoveries | 5,000 | 9,000 | 41,000 | 35,000 | ' | |||
Ending balance | 6,692,000 | 5,715,000 | 6,692,000 | 5,715,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 6,692,000 | ' | 6,692,000 | ' | 6,196,000 | |||
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 | 669,211,000 | ' | 669,211,000 | ' | 619,833,000 | |||
Individually evaluated for impairment | 3,032,000 | [1] | ' | 3,032,000 | [1] | ' | 3,341,000 | [2] |
Purchase credit-impaired | 2,185,000 | ' | 2,185,000 | ' | 1,845,000 | |||
Total loans | 674,428,000 | [3] | ' | 674,428,000 | [3] | ' | 625,019,000 | [3] |
Ratio of allowance for loan losses to total loans | 0.99% | ' | 0.99% | ' | 0.99% | |||
Allowance for loan losses to non-accrual loans | 256.00% | ' | 256.00% | ' | 221.00% | |||
Construction | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | 571,000 | 1,721,000 | 633,000 | 611,000 | ' | |||
Provision for loan losses | -33,000 | -210,000 | 109,000 | 916,000 | ' | |||
Charge-offs | 0 | -24,000 | -204,000 | -41,000 | ' | |||
Recoveries | 96,000 | 0 | 96,000 | 1,000 | ' | |||
Ending balance | 634,000 | 1,487,000 | 634,000 | 1,487,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 631,000 | ' | 631,000 | ' | 292,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 0 | ' | 0 | ' | 341,000 | |||
Ending ALLL related to purchased credit-impaired loans | 3,000 | ' | 3,000 | ' | 0 | |||
Collectively evaluated for impairment | 39,283,000 | ' | 39,283,000 | ' | 24,829,000 | |||
Individually evaluated for impairment | 6,654,000 | [1] | ' | 6,654,000 | [1] | ' | 6,733,000 | [2] |
Purchase credit-impaired | 11,000 | ' | 11,000 | ' | 15,000 | |||
Total loans | 45,948,000 | [3] | ' | 45,948,000 | [3] | ' | 31,577,000 | [3] |
Ratio of allowance for loan losses to total loans | 1.38% | ' | 1.38% | ' | 2.00% | |||
Allowance for loan losses to non-accrual loans | 12.00% | ' | 12.00% | ' | 12.00% | |||
Home equity | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | 944,000 | 1,153,000 | 875,000 | 1,264,000 | ' | |||
Provision for loan losses | -18,000 | -173,000 | 49,000 | -159,000 | ' | |||
Charge-offs | 0 | 0 | 0 | -133,000 | ' | |||
Recoveries | 1,000 | 0 | 3,000 | 8,000 | ' | |||
Ending balance | 927,000 | 980,000 | 927,000 | 980,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 898,000 | ' | 898,000 | ' | 874,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 29,000 | ' | 29,000 | ' | 1,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 108,736,000 | ' | 108,736,000 | ' | 97,894,000 | |||
Individually evaluated for impairment | 852,000 | [1] | ' | 852,000 | [1] | ' | 506,000 | [2] |
Purchase credit-impaired | 67,000 | ' | 67,000 | ' | 69,000 | |||
Total loans | 109,655,000 | [3] | ' | 109,655,000 | [3] | ' | 98,469,000 | [3] |
Ratio of allowance for loan losses to total loans | 0.85% | ' | 0.85% | ' | 0.89% | |||
Allowance for loan losses to non-accrual loans | 209.00% | ' | 209.00% | ' | 374.00% | |||
Other residential | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | 454,000 | 401,000 | 317,000 | 551,000 | ' | |||
Provision for loan losses | -8,000 | -124,000 | 129,000 | -274,000 | ' | |||
Charge-offs | 0 | 0 | 0 | 0 | ' | |||
Recoveries | 0 | 0 | 0 | 0 | ' | |||
Ending balance | 446,000 | 277,000 | 446,000 | 277,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 348,000 | ' | 348,000 | ' | 294,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 98,000 | ' | 98,000 | ' | 23,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 74,440,000 | ' | 74,440,000 | ' | 70,571,000 | |||
Individually evaluated for impairment | 1,552,000 | [1] | ' | 1,552,000 | [1] | ' | 2,063,000 | [2] |
Purchase credit-impaired | 0 | ' | 0 | ' | 0 | |||
Total loans | 75,992,000 | [3],[4] | ' | 75,992,000 | [3],[4] | ' | 72,634,000 | [3],[4] |
Ratio of allowance for loan losses to total loans | 0.59% | ' | 0.59% | ' | 0.44% | |||
Allowance for loan losses to non-accrual loans | ' | ' | ' | ' | 48.00% | |||
Installment and other consumer | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | 481,000 | 1,313,000 | 629,000 | 1,231,000 | ' | |||
Provision for loan losses | 90,000 | -669,000 | -136,000 | -506,000 | ' | |||
Charge-offs | -2,000 | -1,000 | -6,000 | -87,000 | ' | |||
Recoveries | 0 | 1,000 | 82,000 | 6,000 | ' | |||
Ending balance | 569,000 | 644,000 | 569,000 | 644,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 283,000 | ' | 283,000 | ' | 265,000 | |||
Ending ALLL related to loans individually evaluated for impairment | 286,000 | ' | 286,000 | ' | 364,000 | |||
Ending ALLL related to purchased credit-impaired loans | 0 | ' | 0 | ' | 0 | |||
Collectively evaluated for impairment | 17,150,000 | ' | 17,150,000 | ' | 15,357,000 | |||
Individually evaluated for impairment | 1,803,000 | [1] | ' | 1,803,000 | [1] | ' | 1,862,000 | [2] |
Purchase credit-impaired | 0 | ' | 0 | ' | 0 | |||
Total loans | 18,953,000 | [3] | ' | 18,953,000 | [3] | ' | 17,219,000 | [3] |
Ratio of allowance for loan losses to total loans | 3.00% | ' | 3.00% | ' | 3.65% | |||
Allowance for loan losses to non-accrual loans | 374.00% | ' | 374.00% | ' | 372.00% | |||
Unallocated | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | |||
Beginning balance | 633,000 | 196,000 | 506,000 | 219,000 | ' | |||
Provision for loan losses | 249,000 | -104,000 | 376,000 | -127,000 | ' | |||
Charge-offs | 0 | 0 | 0 | 0 | ' | |||
Recoveries | 0 | 0 | 0 | 0 | ' | |||
Ending balance | 882,000 | 92,000 | 882,000 | 92,000 | ' | |||
Ending ALLL related to loans collectively evaluated for impairment | 882,000 | ' | 882,000 | ' | 506,000 | |||
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] | Total excludes $1.7 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. | |||||||
[2] | Total excludes $2.9 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 include net deferred loan costs of $406 thousand and $24 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $4.9 million and $7.6 million at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | |||||||
[4] | Our residential loan portfolio includes no sub-prime loans, nor is it our 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 - Purchased Credit-Impaired Loans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||
PCI Loans, Carrying Value [Abstract] | ' | ' | ' | ' | ' | |||
Unpaid principal balance | $7,723 | ' | $7,723 | ' | $10,634 | |||
Carrying value | 5,193 | ' | 5,193 | ' | 7,115 | |||
Accretable Yield [Roll Forward] | ' | ' | ' | ' | ' | |||
Balance at beginning of period | 4,514 | 3,277 | 3,649 | 3,960 | ' | |||
Removals | 0 | [1] | 0 | [1] | -273 | [1] | -791 | ' |
Accretion | -126 | -153 | -494 | -545 | ' | |||
Reclassifications (to) from nonaccretable difference | -242 | [2] | 0 | [2] | 1,264 | [2] | 500 | ' |
Balance at end of period | 4,146 | 3,124 | 4,146 | 3,124 | ' | |||
Commercial and industrial | ' | ' | ' | ' | ' | |||
PCI Loans, Carrying Value [Abstract] | ' | ' | ' | ' | ' | |||
Unpaid principal balance | 503 | ' | 503 | ' | 1,094 | |||
Carrying value | 334 | ' | 334 | ' | 333 | |||
Commercial real estate loans | ' | ' | ' | ' | ' | |||
PCI Loans, Carrying Value [Abstract] | ' | ' | ' | ' | ' | |||
Unpaid principal balance | 6,848 | ' | 6,848 | ' | 9,152 | |||
Carrying value | 4,781 | ' | 4,781 | ' | 6,698 | |||
Construction | ' | ' | ' | ' | ' | |||
PCI Loans, Carrying Value [Abstract] | ' | ' | ' | ' | ' | |||
Unpaid principal balance | 138 | ' | 138 | ' | 149 | |||
Carrying value | 11 | ' | 11 | ' | 15 | |||
Home equity | ' | ' | ' | ' | ' | |||
PCI Loans, Carrying Value [Abstract] | ' | ' | ' | ' | ' | |||
Unpaid principal balance | 234 | ' | 234 | ' | 239 | |||
Carrying value | $67 | ' | $67 | ' | $69 | |||
[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 changes in expected credit performance and changes in expected amounts and/or timing of cash flows. |
Loans_and_Allowance_for_Loan_L9
Loans and Allowance for Loan Losses - Pledged Loans (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Residential loans pledged for FRB borrowings | $872.60 | $716.20 |
Other residential | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Pledged Financial Instruments, Not Separately Reported, Loans Receivable Pledged as Collateral | 28.5 | 24.4 |
Line of credit | Federal Home Loan Bank Borrowings | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Lines of credit | $455.80 | $416.30 |
Borrowings_Lines_of_Credit_Det
Borrowings - Lines of Credit (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Feb. 05, 2008 | Sep. 30, 2014 | Dec. 31, 2013 | |
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 | ' | 455,800,000 | 416,300,000 |
Term of FHLB borrowing agreements | '10 years | ' | ' |
Principal amount of borrowing agreements with FHLB | ' | 15,000,000 | ' |
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 | ' | 440,600,000 | ' |
Federal Home Loan Bank Borrowings | Letters of credit | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amount of borrowings outstanding | ' | 241,000 | ' |
Federal Home Loan Bank Overnight Borrowings | Line of credit | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amount of borrowings outstanding | ' | 0 | 0 |
Federal Reserve Line of Credit | Line of credit | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Lines of credit | ' | 28,500,000 | 24,400,000 |
Amount of borrowings outstanding | ' | 0 | ' |
Unsecured Debt | Federal Funds Purchased | Line of credit | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Lines of credit | ' | $72,000,000 | $87,000,000 |
Borrowings_Subordinated_Debt_D
Borrowings - Subordinated Debt (Details) (USD $) | 9 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Nov. 29, 2013 | Sep. 30, 2014 | Nov. 29, 2013 | Nov. 29, 2013 | Sep. 30, 2014 | Nov. 29, 2013 | Sep. 30, 2014 | Nov. 29, 2013 | |
debenture | Subordinated Debt | Subordinated Debt | Subordinated Debt | Subordinated Debt | Subordinated Debt | Subordinated Debt | Maximum | |||
NorCal Community Bancorp Trust I | NorCal Community Bancorp Trust I | NorCal Community Bancorp Trust II | NorCal Community Bancorp Trust II | Subordinated Debt | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subordinated debentures acquired | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Subordinated debentures | ' | ' | ' | ' | $4,950,000 | ' | ' | ' | ' | ' |
Contractual value of subordinated debt | ' | ' | ' | 8,248,000 | 8,200,000 | ' | 4,124,000 | ' | 4,124,000 | ' |
Accretion of discount on subordinated debentures | 162,000 | 0 | ' | 162,000 | ' | ' | ' | ' | ' | ' |
Debenture distribution deferral period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years |
Amount guaranteed, on subordinated basis, distributions and other payments on trust preferred securities | $8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate | ' | ' | ' | ' | ' | ' | 3.28% | ' | 1.63% | ' |
Basis spread on subordinated debentures | ' | ' | ' | ' | ' | 3.05% | ' | 1.40% | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||
Dec. 05, 2008 | Nov. 30, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 05, 2008 | Sep. 30, 2014 | Dec. 05, 2008 | Mar. 31, 2009 | Dec. 05, 2008 | Dec. 05, 2008 | |
investor | 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 | ' | ' | ' | ' | ' | ' | ' | ' | 156,688 | 154,242 | ' | ' | ' |
Exercise price of warrant to purchase common stock (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $26.81 | $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 | ' | ' |
Number of institutional investors that purchased warrant | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends to common stockholders | ' | ' | $1,185,000 | $982,000 | $3,428,000 | $2,932,000 | $3,970,000 | ' | ' | ' | ' | ' | ' |
Cash dividends paid per common share | ' | ' | $0.20 | $0.18 | $0.58 | $0.54 | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2014 | Jan. 27, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Visa | Loan commitments and standby letters of credit, unused | Loan commitments and standby letters of credit, unused | Commercial lines of credit | Revolving home equity lines | Undisbursed construction loans | Standby letters of credit | Personal and other lines of credit | ||
Interest payable and other liabilities | |||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan commitments and standby letters of credit, off-balance sheet | ' | ' | $340,300,000 | ' | $172,900,000 | $111,200,000 | $32,200,000 | $10,900,000 | $13,100,000 |
Allowance for off balance sheet commitments | ' | ' | ' | 677,000 | ' | ' | ' | ' | ' |
Operating Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 906,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 3,735,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 3,788,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 3,781,000 | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 3,810,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 10,339,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 26,359,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation and Regulatory Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated portion of the takedown payments related to the opt-out merchants | ' | $1,100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2011 | Aug. 31, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2011 | Aug. 31, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||||||
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 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 | |||||||||
Fair value hedge | Fair value hedge | 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 | 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 hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | Designated as hedging instrument | |||||||||||||||||||
Forward swap | Forward swap | derivative | Other assets | Other assets | Other liabilities | Other liabilities | Forward swap | Forward swap | Fair value hedge | Fair value hedge | Fair value hedge | Fair value hedge | |||||||||||||||||||
derivative | derivative | derivative | derivative | Other assets | Other assets | 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 | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 8 | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Accrued interest on swaps | ' | ' | ' | ' | ' | ' | 39,000 | 70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Interest rate contracts notional amount, Asset derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,353,000 | 17,956,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Interest rate contracts notional amount, Liability derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,620,000 | 21,577,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Interest rate contracts fair value, Asset derivatives | 313,000 | [1] | 961,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 313,000 | 961,000 | ' | ' | ||||
Interest rate contracts fair value, Liability derivatives | 1,537,000 | [2] | 2,519,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,537,000 | 2,519,000 | ||||
Increase in value of designated interest rate swaps recognized in interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000 | 196,000 | 334,000 | 2,800,000 | ' | ' | ' | ' | ||||||
Payment on interest rate swaps recorded in interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -251,000 | -358,000 | -755,000 | -1,075,000 | ' | ' | ' | ' | ||||||
Decrease in value of hedged loans recognized in interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -54,000 | -245,000 | -133,000 | -3,033,000 | ' | ' | ' | ' | ||||||
Decrease in value of yield maintenance agreement recognized against interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15,000 | -18,000 | -77,000 | -54,000 | ' | ' | ' | ' | ||||||
Net loss on derivatives recognized against interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -299,000 | [3] | -425,000 | [3] | -631,000 | [3] | -1,362,000 | [3] | ' | ' | ' | ' | ||
Net hedge ineffectiveness, derivatives | ' | ' | $48,000 | $67,000 | $125,000 | $287,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
[1] | Amounts exclude accrued interest totaling $7 thousand and $10 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | ||||||||||||||||||||||||||||||
[2] | Amounts exclude accrued interest totaling $32 thousand and $60 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. | ||||||||||||||||||||||||||||||
[3] | Includes hedge ineffectiveness loss of $48 thousand and loss of $67 thousand for the quarters ended SeptemberB 30, 2014 and SeptemberB 30, 2013, respectively. Hedge ineffectiveness gain of $125 thousand and loss of $287 thousand was recorded in interest income during the nine months ended SeptemberB 30, 2014 and SeptemberB 30, 2013, respectively. Changes in value of swaps were included in the assessment of hedge effectiveness. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments and Hedging Activities - Offsetting of Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Offsetting Assets [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | $313 | [1] | $961 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Assets Presented in the Statements of Condition | 313 | [1] | 961 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | -313 | -825 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 | ||
Net Amount | 0 | 136 | ||
Counterparty A | ' | ' | ||
Offsetting Assets [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | 313 | [1] | 961 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Assets Presented in the Statements of Condition | 313 | [1] | 961 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | -313 | -825 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 | ||
Net Amount | 0 | 136 | ||
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 | ||
Other assets | Interest rate swap | ' | ' | ||
Offsetting Assets [Line Items] | ' | ' | ||
Accrued interest on derivative asset interest rate swaps | $7 | $10 | ||
[1] | Amounts exclude accrued interest totaling $7 thousand and $10 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. |
Derivative_Financial_Instrumen4
Derivative Financial Instruments and Hedging Activities - Offsetting of Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Offsetting Liabilities [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | $1,537 | [1] | $2,519 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statements of Condition | 1,537 | [1] | 2,519 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | -313 | -825 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | -397 | -1,694 | ||
Net Amount | 827 | 0 | ||
Counterparty A | ' | ' | ||
Offsetting Liabilities [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 1,140 | [1] | 825 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statements of Condition | 1,140 | [1] | 825 | [1] |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | -313 | -825 | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | 0 | 0 | ||
Net Amount | 827 | 0 | ||
Counterparty B | ' | ' | ||
Offsetting Liabilities [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 397 | [1] | 1,694 | [1] |
Gross Amounts Offset in the Statements of Condition | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Statements of Condition | 397 | [1] | 1,694 | [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 | -397 | -1,694 | ||
Net Amount | 0 | 0 | ||
Other liabilities | Interest rate swap | ' | ' | ||
Offsetting Liabilities [Line Items] | ' | ' | ||
Accrued interest on derivative liability interest swaps | $32 | $60 | ||
[1] | Amounts exclude accrued interest totaling $32 thousand and $60 thousand at SeptemberB 30, 2014 and DecemberB 31, 2013, respectively. |