Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Bank of Marin Bancorp | |
Entity Central Index Key | 1,403,475 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 6,122,987 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 55,438 | $ 26,343 |
Investment securities | ||
Held-to-maturity, at amortized cost | 58,491 | 69,637 |
Available-for-sale, at fair value | 323,361 | 417,787 |
Total investment securities | 381,852 | 487,424 |
Loans, net of allowance for loan losses of $15,087 and $14,999 at June 30, 2016 and December 31, 2015, respectively | 1,433,312 | 1,436,229 |
Bank premises and equipment, net | 8,650 | 9,305 |
Goodwill | 6,436 | 6,436 |
Core deposit intangible | 2,846 | 3,113 |
Interest receivable and other assets | 61,918 | 62,284 |
Total assets | 1,950,452 | 2,031,134 |
Deposits | ||
Non-interest-bearing | 804,447 | 770,087 |
Interest-bearing | ||
Transaction accounts | 88,365 | 114,277 |
Savings accounts | 149,745 | 141,316 |
Money market accounts | 502,476 | 541,089 |
Time accounts | 160,582 | 161,457 |
Total deposits | 1,705,615 | 1,728,226 |
Federal Home Loan Bank (FHLB) and other borrowings | 0 | 67,000 |
Subordinated debentures | 5,493 | 5,395 |
Interest payable and other liabilities | 12,892 | 16,040 |
Total liabilities | 1,724,000 | 1,816,661 |
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 - 6,120,684 and 6,068,543 at June 30, 2016 and December 31, 2015, respectively | 86,569 | 84,727 |
Retained earnings | 136,992 | 129,553 |
Accumulated other comprehensive income, net | 2,891 | 193 |
Total stockholders' equity | 226,452 | 214,473 |
Total liabilities and stockholders' equity | $ 1,950,452 | $ 2,031,134 |
CONSOLIDATED STATEMENTS OF CON3
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable, Net Amount | ||
Loans, allowance for loan losses | $ 15,087 | $ 14,999 |
Stockholders' Equity | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 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) | 6,120,684 | 6,068,543 |
Common stock, outstanding (in shares) | 6,120,684 | 6,068,543 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income | ||||
Interest and fees on loans | $ 16,097 | $ 15,287 | $ 33,238 | $ 30,666 |
Interest on investment securities | ||||
Securities of U.S. government agencies | 1,191 | 990 | 2,543 | 2,025 |
Obligations of state and political subdivisions | 588 | 511 | 1,174 | 1,051 |
Corporate debt securities and other | 77 | 179 | 182 | 384 |
Interest on Federal funds sold and short-term investments | 40 | 51 | 51 | 72 |
Total interest income | 17,993 | 17,018 | 37,188 | 34,198 |
Interest expense | ||||
Interest on interest-bearing transaction accounts | 28 | 30 | 55 | 60 |
Interest on savings accounts | 14 | 13 | 28 | 25 |
Interest on money market accounts | 107 | 123 | 218 | 250 |
Interest on time accounts | 193 | 215 | 389 | 437 |
Interest on FHLB and other borrowings | 378 | 78 | 478 | 156 |
Interest on subordinated debentures | 107 | 105 | 216 | 209 |
Total interest expense | 827 | 564 | 1,384 | 1,137 |
Net interest income | 17,166 | 16,454 | 35,804 | 33,061 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Net interest income after provision for loan losses | 17,166 | 16,454 | 35,804 | 33,061 |
Non-interest income | ||||
Service charges on deposit accounts | 441 | 504 | 897 | 1,029 |
Wealth Management and Trust Services | 527 | 603 | 1,093 | 1,241 |
Debit card interchange fees | 381 | 368 | 719 | 715 |
Merchant interchange fees | 128 | 129 | 241 | 259 |
Earnings on bank-owned life insurance | 209 | 203 | 410 | 406 |
Dividends on FHLB stock | 185 | 461 | 354 | 608 |
Gains on investment securities, net | 284 | 0 | 394 | 8 |
Other income | 266 | 340 | 476 | 531 |
Total non-interest income | 2,421 | 2,608 | 4,584 | 4,797 |
Non-interest expense | ||||
Salaries and related benefits | 6,724 | 6,672 | 13,472 | 13,462 |
Occupancy and equipment | 1,175 | 1,493 | 2,456 | 2,835 |
Depreciation and amortization | 441 | 650 | 894 | 1,071 |
Federal Deposit Insurance Corporation insurance | 246 | 253 | 507 | 489 |
Data processing | 916 | 792 | 1,772 | 1,578 |
Professional services | 554 | 515 | 1,052 | 1,079 |
Directors' expense | 116 | 247 | 305 | 438 |
Information technology | 165 | 216 | 358 | 368 |
Reversal of losses on off-balance sheet commitments | 150 | (109) | 150 | (310) |
Other expense | 1,530 | 1,590 | 3,061 | 3,166 |
Total non-interest expense | 12,017 | 12,319 | 24,027 | 24,176 |
Income before provision for income taxes | 7,570 | 6,743 | 16,361 | 13,682 |
Provision for income taxes | 2,733 | 2,457 | 5,878 | 4,939 |
Net income | $ 4,837 | $ 4,286 | $ 10,483 | $ 8,743 |
Net income per common share: | ||||
Basic (usd per share) | $ 0.80 | $ 0.72 | $ 1.73 | $ 1.47 |
Diluted (usd per share) | $ 0.79 | $ 0.71 | $ 1.72 | $ 1.44 |
Weighted average shares used to compute net income per common share: | ||||
Basic (shares) | 6,078 | 5,945 | 6,063 | 5,933 |
Diluted (shares) | 6,109 | 6,062 | 6,100 | 6,055 |
Dividends declared per common share | $ 0.25 | $ 0.22 | $ 0.50 | $ 0.44 |
Comprehensive income: | ||||
Net income | $ 4,837 | $ 4,286 | $ 10,483 | $ 8,743 |
Other comprehensive income | ||||
Change in net unrealized gain (loss) on available-for-sale securities | 2,119 | (1,803) | 5,042 | (486) |
Reclassification adjustment for gain on available-for-sale securities included in net income | (284) | 0 | (394) | (8) |
Net change in unrealized gain (loss) on available-for-sale securities, before tax | 1,835 | (1,803) | 4,648 | (494) |
Deferred tax expense (benefit) | 776 | (691) | 1,950 | (137) |
Other comprehensive income (loss), net of tax | 1,059 | (1,112) | 2,698 | (357) |
Comprehensive income | $ 5,896 | $ 3,174 | $ 13,181 | $ 8,386 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Taxes |
Balance (in shares) at Dec. 31, 2014 | 5,939,482 | |||
Balance at Dec. 31, 2014 | $ 200,026 | $ 82,436 | $ 116,502 | $ 1,088 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 18,441 | 18,441 | ||
Other comprehensive income (loss) | (895) | (895) | ||
Stock options exercised (in shares) | 37,071 | |||
Stock options exercised | 1,139 | $ 1,139 | ||
Excess tax benefit - stock-based compensation | 212 | $ 212 | ||
Stock issued under employee stock purchase plan (in shares) | 339 | |||
Stock issued under employee stock purchase plan | 17 | $ 17 | ||
Restricted stock granted (in shares) | 15,970 | |||
Restricted stock granted | 0 | $ 0 | ||
Restricted stock forfeited/cancelled (in shares) | (450) | |||
Restricted stock forfeited/cancelled | 0 | $ 0 | ||
Stock-based compensation - stock options | 252 | 252 | ||
Stock-based compensation - restricted stock | 384 | $ 384 | ||
Cash dividends paid on common stock | (5,390) | (5,390) | ||
Stock purchased by directors under director stock plan (in shares) | 245 | |||
Stock purchased by directors under director stock plan | 12 | $ 12 | ||
Stock issued in payment of director fees (in shares) | 5,295 | |||
Stock issued in payment of director fees | $ 275 | $ 275 | ||
Stock issued from exercise of warrants | 70,591 | |||
Balance (in shares) at Dec. 31, 2015 | 6,068,543 | 6,068,543 | ||
Balance at Dec. 31, 2015 | $ 214,473 | $ 84,727 | 129,553 | 193 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock Issued During Period, Value, New Issues | 0 | $ 0 | ||
Net income | 10,483 | 10,483 | ||
Other comprehensive income (loss) | 2,698 | 2,698 | ||
Stock options exercised (in shares) | 32,117 | |||
Stock options exercised | 1,087 | $ 1,087 | ||
Excess tax benefit - stock-based compensation | 113 | $ 113 | ||
Stock issued under employee stock purchase plan (in shares) | 294 | |||
Stock issued under employee stock purchase plan | 13 | $ 13 | ||
Restricted stock granted (in shares) | 16,910 | |||
Restricted stock granted | 0 | $ 0 | ||
Stock-based compensation - stock options | 181 | 181 | ||
Stock-based compensation - restricted stock | 297 | $ 297 | ||
Cash dividends paid on common stock | (3,044) | (3,044) | ||
Stock purchased by directors under director stock plan (in shares) | 260 | |||
Stock purchased by directors under director stock plan | 14 | $ 14 | ||
Stock issued in payment of director fees (in shares) | 2,560 | |||
Stock issued in payment of director fees | $ 137 | $ 137 | ||
Balance (in shares) at Jun. 30, 2016 | 6,120,684 | 6,120,684 | ||
Balance at Jun. 30, 2016 | $ 226,452 | $ 86,569 | $ 136,992 | $ 2,891 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Cash Flows from Operating Activities: | |||||
Net income | $ 4,837 | $ 4,286 | $ 10,483 | $ 8,743 | $ 18,441 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for (reversal of) losses on off-balance sheet commitments | 150 | (109) | 150 | (310) | |
Compensation expense via common stock for director fees | 97 | 138 | |||
Stock-based compensation expense | 478 | 308 | |||
Excess tax benefits from exercised or vesting of stock based-awards | (113) | (141) | |||
Amortization of core deposit intangible | 267 | 309 | |||
Amortization of investment security premiums, net of accretion of discounts | 1,466 | 1,217 | |||
Accretion of discount on acquired loans | (832) | (1,076) | |||
Accretion of discount on subordinated debentures | 98 | 106 | |||
Net amortization of deferred loan origination costs/fees | 43 | (294) | |||
Write-down of other real estate owned | 13 | 40 | |||
Gain on sale of investment securities | (394) | (8) | |||
Depreciation and amortization | 441 | 650 | 894 | 1,071 | |
Loss on disposal of premises and equipment | 0 | 4 | |||
Earnings on bank-owned life insurance policies | (209) | (203) | (410) | (406) | |
Net change in operating assets and liabilities: | |||||
Interest receivable | 676 | 109 | |||
Interest payable | (50) | (4) | |||
Deferred rent and other rent-related expenses | (262) | 86 | |||
Other assets | 1,763 | 1,504 | |||
Other liabilities | (3,872) | (2,271) | |||
Total adjustments | 12 | 382 | |||
Net cash provided by operating activities | 10,495 | 9,125 | |||
Cash Flows from Investing Activities: | |||||
Purchase of held-to-maturity securities | (2,424) | (2,375) | |||
Purchase of available-for-sale securities | (19,916) | (76,708) | |||
Proceeds from sale of available-for-sale securities | 13,688 | 1,559 | 68,673 | 1,559 | |
Purchase of bank owned life insurance policies | (1,864) | 0 | |||
Proceeds from paydowns/maturity of held-to-maturity securities | 13,243 | 23,723 | |||
Proceeds from paydowns/maturity of available-for-sale securities | 49,576 | 20,814 | |||
Proceeds from the sale of loan | 0 | 1,502 | |||
Loans originated and principal collected, net | 4,996 | 22,818 | |||
Purchase of FHLB stock | (1,792) | (136) | |||
Purchase of premises and equipment | (239) | (889) | |||
Cash paid for low income housing tax credit investment | (225) | (434) | |||
Net cash provided by (used in) investing activities | 110,028 | (10,126) | |||
Cash Flows from Financing Activities: | |||||
Net (decrease) increase in deposits | (22,611) | 78,864 | |||
Proceeds from stock options exercised | 1,087 | 774 | |||
Proceeds from stock issued under employee and director stock purchase plans | 27 | 8 | |||
Repayment of Federal Home Loan Bank borrowings | (67,000) | 0 | |||
Cash dividends paid on common stock | (3,044) | (2,620) | |||
Excess tax benefits from exercised or vesting of stock based-awards | 113 | 141 | |||
Net cash (used in) provided by financing activities | (91,428) | 77,167 | |||
Net increase in cash and cash equivalents | 29,095 | 76,166 | |||
Cash and cash equivalents at beginning of period | 26,343 | 41,367 | 41,367 | ||
Cash and cash equivalents at end of period | $ 55,438 | $ 117,533 | 55,438 | 117,533 | $ 26,343 |
Supplemental disclosure of cash flow information: | |||||
Cash paid for interest | 1,336 | 1,035 | |||
Cash paid for income taxes | 7,095 | 5,270 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||
Change in unrealized gain on available-for-sale securities | 4,648 | (494) | |||
Subscription in low income housing tax credit investment | 0 | 1,023 | |||
Stock issued in payment of director fees | $ 137 | $ 138 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Bank of Marin Bancorp (“Bancorp”), a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin (the “Bank”), a California state-chartered commercial bank. References to “we,” “our,” “us” mean the holding company and the Bank that are consolidated for financial reporting purposes. The accompanying unaudited consolidated interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. Although we believe that the disclosures are adequate and the information presented is not misleading, we suggest that these interim financial statements be read in conjunction with the annual financial statements and the notes thereto included in our 2015 Annual Report on Form 10-K. In the opinion of Management, the unaudited consolidated financial statements reflect all adjustments which are necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income, changes in stockholders’ equity, and cash flows for the periods presented. All material intercompany transactions have been eliminated. The results of these interim periods may not be indicative of the results for the full year or for any other period. We have evaluated subsequent events through the date of filing with the SEC and have determined that there are no subsequent events that require additional recognition or disclosure. The NorCal Community Bancorp Trusts I and II, respectively (the "Trusts") 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 (See Note 6, Borrowings). Bancorp's investment in the securities 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. The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options, unvested restricted stock awards 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 awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares, which is based on average market prices during the three months of the reporting period, under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. We have two forms of our outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Therefore, under the two-class method, the difference in EPS is not significant for these participating securities. Three months ended Six months ended (in thousands, except per share data) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Weighted average basic shares outstanding 6,078 5,945 6,063 5,933 Potentially dilutive common shares related to: Stock options 27 41 31 44 Unvested restricted stock awards 4 3 6 4 Warrant — 73 — 74 Weighted average diluted shares outstanding 6,109 6,062 6,100 6,055 Net income $ 4,837 $ 4,286 $ 10,483 $ 8,743 Basic EPS $ 0.80 $ 0.72 $ 1.73 $ 1.47 Diluted EPS $ 0.79 $ 0.71 $ 1.72 $ 1.44 Weighted average anti-dilutive shares not included in the calculation of diluted EPS 70 41 60 34 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU is a converged standard involving FASB and International Financial Reporting Standards that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount and at a time that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Subsequent updates related to Revenue from Contracts with Customers (Topic 606) are as follows: • August 2015 ASU No. 2015-14 - Deferral of the Effective Date , institutes a one-year deferral of the effective date of this amendment to annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual periods beginning after December 15, 2016, including interim reporting periods within that reporting period. • March 2016 ASU No. 2016-08 - Principal versus Agent Considerations (Reporting Revenue Gross versus Net), clarifies the implementation guidance on principal versus agent considerations and on the use of indicators that assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. • April 2016 ASU No. 2016-10 - Identifying Performance Obligations and Licensing, provides guidance in determining performance obligations in a contract with a customer and clarifies whether a promise to grant a license provides a right to access or the right to use intellectual property. • May 2016 ASU No. 2016-12 - Narrow Scope Improvements and Practical Expedients , gives further guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. We are currently evaluating the provisions of these updates and will be monitoring developments and additional guidance to determine the potential impact the new standards will have on our financial condition and results of operations. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this ASU make improvements to GAAP related to financial instruments that include the following as applicable to us. • Equity investments, except for those accounted for under the equity method of accounting or those that result in consolidation of the investee, are required to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. • Simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment - if impairment exists, this requires measuring the investment at fair value. • Eliminates the requirement for public companies to disclose the method(s) and significant assumptions used to estimate the fair value that is currently required to be disclosed for financial instruments measured at amortized cost on the balance sheet. • Public companies will be required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. • The reporting entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. ASU 2016-01 is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU will impact our financial statement disclosures, however, we do not expect it to have a material impact on our financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities, including leases classified as operating leases under previous GAAP, on the balance sheet and requiring additional disclosures of key information about leasing arrangements. This ASU applies to leasing arrangements exceeding a twelve month term. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods beginning after December 15, 2018 and requires a modified retrospective method upon adoption. Early application of the amendments is permitted. We are currently evaluating the provisions of this ASU and will be monitoring developments and additional guidance to determine the timing of our adoption and the potential outcome the amendments will have on our financial condition and results of operations. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships . A contract novation refers to replacing one of the parties to a derivative instrument with a new party. This ASU clarifies that a change in counterparty in a derivative instrument does not, in and of itself, require dedesignation of that hedging relationship and therefore discontinue the application of hedge accounting. ASU 2016-05 is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. We do not expect this ASU to have a material impact on our financial condition or results of operations. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This ASU identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture accounting, and classifications on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. We are currently evaluating the the provisions of this ASU and will be monitoring developments and additional guidance to determine the potential outcome the amendments will have on our financial condition and results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses, requiring a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is likely to result in more timely recognition of such losses. In addition, the accounting for purchased credit impaired financial assets will make the allowance for credit losses more comparable between originated assets and purchased financial assets, as well as reduce complexity with the accounting for interest income. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the provisions of this ASU and will be monitoring developments and additional guidance to determine the timing of our adoption and the potential outcome the amendments will have on our financial condition and results of operations. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
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 into 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 unadjusted quoted prices in active markets for identical assets or liabilities. 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 may include significant Management judgment and estimation. Transfers between levels of the fair value hierarchy are recognized through our monthly and/or quarterly valuation process in the reporting period during which the event or circumstances that caused the transfer occurred. The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis. (in thousands) Description of Financial Instruments Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 Securities available-for-sale: Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies $ 167,407 $ — $ 166,750 $ 657 Debentures of government-sponsored agencies 83,758 — 83,758 — Privately-issued collateralized mortgage obligations 768 — 768 — Obligations of state and political subdivisions 66,452 — 66,452 — Corporate bonds 4,976 — 4,976 — Derivative financial liabilities (interest rate contracts) 2,721 — 2,721 — December 31, 2015 Securities available-for-sale: Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies $ 190,093 $ — $ 188,381 $ 1,712 Debentures of government-sponsored agencies 160,892 — 160,892 — Privately-issued collateralized mortgage obligations 4,150 — 4,150 — Obligations of state and political subdivisions 57,673 — 57,673 — Corporate bonds 4,979 — 4,979 — Derivative financial assets (interest rate contracts) 3 — 3 — Derivative financial liabilities (interest rate contracts) 1,658 — 1,658 — 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 obligations of state and political subdivisions, U.S. agencies or government sponsored agencies' debt securities, mortgage-backed securities, government agency-issued and privately-issued collateralized mortgage obligations. As of June 30, 2016 and December 31, 2015 , there were no securities that were considered Level 1 securities. As of June 30, 2016 , we had one available-for-sale security that was considered a Level 3 security. The security is a U.S. government agency obligation collateralized by a small number of business equipment loans guaranteed by the Small Business Administration ("SBA") 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. The decrease in fair value during 2016 was due to the payoff of one of the larger loans in the pool collateralizing the security. The unrealized gain on this SBA-guaranteed security decreased by $2 thousand in the same period recorded as part of other comprehensive income. 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. 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 risk in determining the fair value of the derivatives. Level 2 inputs for the valuations are limited to observable market prices for London Interbank Offered Rate ("LIBOR") and Overnight Index Swap ("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 contract to determine future cash flows, then discount to present value using either LIBOR or OIS curves depending on whether the swap positions are fully collateralized as of the measurement date. When the value of any collateral placed with counterparties is less than the interest rate derivative liability, a credit valuation adjustment ("CVA") is applied to reflect the credit risk we pose 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 CVA. A similar credit risk adjustment, correlated to the credit standing of the counterparty, is made when collateral posted by the counterparty does not fully cover their liability to Bank of Marin. For further discussion on our methodology in valuing our derivative financial instruments, refer to Note 9. 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"). The following table presents the carrying value of assets and liabilities measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of June 30, 2016 and December 31, 2015 . (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) June 30, 2016 Impaired loans 1 $ 171 $ — $ — $ 171 Other real estate owned 408 — — 408 December 31, 2015 Impaired loans $ — $ — $ — $ — Other real estate owned 421 — — 421 1 Represents collateral-dependent loan principal balances that had been generally written down to the values of the underlying collateral and reflected net of specific valuation allowances. At June 30, 2016, the $171 thousand carrying value of a consumer loan was net of a $5 thousand specific valuation allowance. The carrying value of loans fully charged-off, which includes unsecured lines of credit, overdrafts and all other loans, is zero. 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 property characteristics, leasing status and physical condition. When appraisals are received, Management reviews the underlying assumptions and methodology utilized, 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 and are generally unobservable valuation inputs as they are specific to the underlying collateral. There have been no significant changes in the valuation techniques during 2016. 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 classified as Level 3. All OREO resulted from an acquisition. Decreases in the estimated fair value of OREO totaled $13 thousand and $40 thousand during the first six months of 2016 and 2015, respectively. Disclosures about Fair Value of Financial Instruments The table below is a summary of fair value estimates for financial instruments as of June 30, 2016 and December 31, 2015 , 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. June 30, 2016 December 31, 2015 (in thousands) Carrying Amounts Fair Value Fair Value Hierarchy Carrying Amounts Fair Value Fair Value Hierarchy Financial assets Cash and cash equivalents $ 55,438 $ 55,438 Level 1 $ 26,343 $ 26,343 Level 1 Investment securities held-to-maturity 58,491 60,160 Level 2 69,637 71,054 Level 2 Loans, net 1,433,312 1,453,254 Level 3 1,436,229 1,470,380 Level 3 Interest receivable 5,968 5,968 Level 2 6,643 6,643 Level 2 Financial liabilities Deposits 1,705,615 1,705,937 Level 2 1,728,226 1,728,717 Level 2 Federal Home Loan Bank and other borrowings — — Level 2 67,000 67,279 Level 2 Subordinated debentures 5,493 5,108 Level 3 5,395 5,132 Level 3 Interest payable 137 137 Level 2 187 187 Level 2 Following is a description of methods and assumptions used to estimate the fair value of each class of financial instrument not recorded at fair value but required for disclosure purposes: Cash and Cash Equivalents - The carrying amounts of cash and cash equivalents approximate their fair value because of the short-term nature of these instruments. Held-to-maturity Securities - Held-to-maturity securities, which generally consist of obligations of state and political subdivisions and corporate bonds, are recorded at their amortized cost. The 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 June 30, 2016 and December 31, 2015 , 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 their current carrying value, because their rates are regularly adjusted to current market rates. The fair value of fixed rate loans or variable loans at negotiated interest rate floors or ceilings with remaining maturities in excess of one year is estimated by discounting the future cash flows using current market rates at which similar loans would be made to borrowers with similar creditworthiness 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 deposits without stated maturity, such as 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 term of our fixed-rate credit advances. Subordinated Debentures - 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% ) 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 interest payment was discounted at the spot rate for the corresponding term, determined based on the yields and terms of comparable trust preferred securities, plus a liquidity premium. 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 issuances and led to the absence of observable or comparable transactions in the market place. Due to the use of unobservable inputs of trust preferred securities, we consider the fair value to be a Level 3 measurement. See Note 6 for further information. Commitments - The value of unrecognized financial instruments is estimated based on the fee income associated with the commitments which, in the absence of credit exposure, is considered to approximate their settlement value. The fair value of commitment fees was not material at June 30, 2016 and December 31, 2015 , respectively. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
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, Federal Farm Credit Bureau, FHLB and FHLMC, as well as privately issued CMOs, as reflected in the table below: June 30, 2016 December 31, 2015 Amortized Fair Gross Unrealized Amortized Fair Gross Unrealized (in thousands) Cost Value Gains (Losses) Cost Value Gains (Losses) Held-to-maturity: Obligations of state and political subdivisions $ 39,009 $ 40,337 $ 1,336 $ (8 ) $ 42,919 $ 44,146 $ 1,246 $ (19 ) Corporate bonds 8,529 8,534 6 (1 ) 15,072 15,098 42 (16 ) MBS pass-through securities issued by FHLMC and FNMA 10,953 11,289 336 — 11,646 11,810 171 (7 ) Total held-to-maturity 58,491 60,160 1,678 (9 ) 69,637 71,054 1,459 (42 ) Available-for-sale: Securities of U.S. government or government-sponsored agencies: MBS pass-through securities issued by FHLMC and FNMA 111,682 113,877 2,195 — 138,222 138,462 694 (454 ) CMOs issued by FNMA 23,061 23,387 331 (5 ) 18,266 18,219 97 (144 ) CMOs issued by FHLMC 21,110 21,451 341 — 22,889 22,932 82 (39 ) CMOs issued by GNMA 8,470 8,692 222 — 10,326 10,480 169 (15 ) Debentures of government- sponsored agencies 83,566 83,758 193 (1 ) 161,690 160,892 28 (826 ) Privately issued CMOs 768 768 1 (1 ) 3,960 4,150 190 — Obligations of state and political subdivisions 64,725 66,452 1,729 (2 ) 57,110 57,673 580 (17 ) Corporate bonds 4,954 4,976 25 (3 ) 4,947 4,979 43 (11 ) Total available-for-sale 318,336 323,361 5,037 (12 ) 417,410 417,787 1,883 (1,506 ) Total investment securities $ 376,827 $ 383,521 $ 6,715 $ (21 ) $ 487,047 $ 488,841 $ 3,342 $ (1,548 ) The amortized cost and fair value of investment debt securities by contractual maturity at June 30, 2016 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. June 30, 2016 December 31, 2015 Held-to-Maturity Available-for-Sale Held-to-Maturity Available-for-Sale (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 19,481 $ 19,545 $ 2,412 $ 2,416 $ 18,853 $ 18,920 $ 12,135 $ 12,176 After one year but within five years 21,203 21,929 114,702 115,207 31,677 32,360 188,007 187,326 After five years through ten years 5,646 6,068 65,766 67,170 8,580 8,969 64,899 64,999 After ten years 12,161 12,618 135,456 138,568 10,527 10,805 152,369 153,286 Total $ 58,491 $ 60,160 $ 318,336 $ 323,361 $ 69,637 $ 71,054 $ 417,410 $ 417,787 Sales of investment securities and gross realized gains and losses are shown in the following table. Three months ended Six months ended (in thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Available-for-sale: Sales proceeds $ 13,688 $ 1,559 $ 68,673 $ 1,559 Gross realized gains 284 8 458 8 Gross realized losses — — (64 ) — Investment securities carried at $96.7 million and $87.9 million at June 30, 2016 and December 31, 2015 , respectively, were pledged to the State of California: $95.9 million and $87.1 million to secure public deposits in compliance with the Local Agency Security Program at June 30, 2016 and December 31, 2015 , respectively, and $831 thousand and $840 thousand to provide collateral for trust deposits at June 30, 2016 and December 31, 2015 , respectively. In addition, investment securities carried at $2.1 million and $1.1 million were pledged to collateralize a Wealth Management and Trust Services (“WMTS”) checking account at June 30, 2016 and December 31, 2015 , respectively. Other-Than-Temporarily Impaired Debt Securities We have evaluated the credit of our investment securities and their issuers and/or insurers. Based on our evaluation, Management has determined that no investment security in our investment portfolio is other-than-temporarily impaired as of June 30, 2016 . We do not have the intent and it is more likely than not that we will not have to sell securities temporarily impaired at June 30, 2016 before recovery of the cost basis. Ten and fifty-four investment securities were in unrealized loss positions at June 30, 2016 and December 31, 2015 , respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below: June 30, 2016 < 12 continuous months ≥ 12 continuous months Total securities in a loss position (in thousands) Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Held-to-maturity: Obligations of state and political subdivisions $ 1,058 $ (8 ) $ — $ — $ 1,058 $ (8 ) Corporate bonds 5,000 (1 ) — — 5,000 (1 ) MBS pass-through securities issued by FHLMC and FNMA — — — — — — Total held-to-maturity 6,058 (9 ) — — 6,058 (9 ) Available-for-sale: MBS pass-through securities issued by FHLMC and FNMA — — — — — — CMOs issued by FNMA — — 2,811 (5 ) 2,811 (5 ) CMOs issued by FHLMC — — — — — — CMOs issued by GNMA — — — — — — Debentures of government- sponsored agencies 9,997 (1 ) — — 9,997 (1 ) Privately issued CMOs 182 (1 ) — — 182 (1 ) Obligations of state & political subdivisions 1,918 (2 ) — — 1,918 (2 ) Corporate bonds 1,990 (3 ) — — 1,990 (3 ) Total available-for-sale 14,087 (7 ) 2,811 (5 ) 16,898 (12 ) Total temporarily impaired securities $ 20,145 $ (16 ) $ 2,811 $ (5 ) $ 22,956 $ (21 ) December 31, 2015 < 12 continuous months ≥ 12 continuous months Total securities in a loss position (in thousands) Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Held-to-maturity: Obligations of state and political subdivisions $ 8,297 $ (19 ) $ — $ — $ 8,297 $ (19 ) Corporate bonds 3,523 (15 ) 1,999 (1 ) 5,522 (16 ) MBS pass-through securities issued by FHLMC and FNMA 2,332 (7 ) — — 2,332 (7 ) Total held-to-maturity 14,152 (41 ) 1,999 (1 ) 16,151 (42 ) Available-for-sale: MBS pass-through securities issued by FHLMC and FNMA 68,809 (454 ) — — 68,809 (454 ) CMOs issued by FNMA 9,277 (80 ) 3,158 (64 ) 12,435 (144 ) CMOs issued by FHLMC — — 1,989 (39 ) 1,989 (39 ) CMOs issued by GNMA 164 — 2,374 (15 ) 2,538 (15 ) Debentures of government- sponsored agencies 136,064 (713 ) 9,887 (113 ) 145,951 (826 ) Obligations of state & political subdivisions 4,557 (15 ) 579 (2 ) 5,136 (17 ) Corporate bonds 2,986 (11 ) — — 2,986 (11 ) Total available-for-sale 221,857 (1,273 ) 17,987 (233 ) 239,844 (1,506 ) Total temporarily impaired securities $ 236,009 $ (1,314 ) $ 19,986 $ (234 ) $ 255,995 $ (1,548 ) As of June 30, 2016 , there was one CMO issued by FNMA that had been in a continuous loss position for twelve months or more. We have evaluated it 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 as it is supported by the U.S. Federal Government, which protects us from credit losses. Based upon our assessment of the credit fundamentals, we concluded that this security was not other-than-temporarily impaired at June 30, 2016 . Nine investment securities in our portfolio were in a temporary loss position for less than twelve months as of June 30, 2016 . They consisted of one debenture of U.S. government-sponsored agency, three obligations of U.S. state and political subdivisions, one privately issued CMO and four corporate bonds. The government-sponsored agency debenture is supported by the U.S. Federal Government, which protects us from credit losses. Other temporarily impaired securities are deemed creditworthy after internal analysis of the issuers' latest financial information and credit enhancement. Additionally, all are rated as investment grade by at least one major rating agency. As a result of this impairment analysis, we have concluded that these securities were not other-than-temporarily impaired at June 30, 2016 . 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 increase in the event we increase our total asset size or borrowings with the FHLB. Shares cannot be purchased or sold except between the FHLB and its members at the $100 per share par value. We held $10.2 million and $8.4 million of FHLB stock recorded at cost in other assets on the consolidated statements of condition at June 30, 2016 and December 31, 2015 , 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 July 28, 2016, FHLB announced a cash dividend for the second quarter of 2016 at an annualized dividend rate of 9.17% to be distributed in mid August 2016. Cash dividends paid on FHLB capital stock are recorded as non-interest income. 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. When converting this Class B common stock to Class A common stock under the current conversion rate of 1.6483 and the closing stock price of Class A shares, the value of our shares of Class B common stock would have been $2.1 million at June 30, 2016 and $2.2 million at December 31, 2015 . 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 8 herein. We invest in low income housing tax credit funds as a limited partner, which totaled $2.6 million and $2.7 million recorded in other assets as of June 30, 2016 and December 31, 2015 , respectively. In the first half of 2016, we recognized $164 thousand of low income housing tax credits and other tax benefits, net of $127 thousand of amortization expense of low income housing tax credit investment, as a component of income tax expense. As of June 30, 2016 , our unfunded commitments for these low income housing tax credit funds totaled $1.5 million . We did not recognize any impairment losses on these low income housing tax credit investments during the first half of 2016 or 2015. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 were as follows: Loan Aging Analysis by Loan Class (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential 1 Installment and other consumer Total June 30, 2016 30-59 days past due $ 44 $ — $ — $ — $ 780 $ — $ — $ 824 60-89 days past due — — 1,676 — — — 63 1,739 90 days or more past due 21 176 — — 99 — — 296 Total past due 65 176 1,676 — 879 — 63 2,859 Current 215,192 241,927 701,782 77,024 111,361 73,761 24,493 1,445,540 Total loans 3 $ 215,257 $ 242,103 $ 703,458 $ 77,024 $ 112,240 $ 73,761 $ 24,556 $ 1,448,399 Non-accrual 2 $ 21 $ 176 $ 1,676 $ — $ 789 $ — $ 63 $ 2,725 December 31, 2015 30-59 days past due $ 36 $ — $ 1,096 $ 1 $ — $ — $ 249 $ 1,382 60-89 days past due — — — — 633 — 89 722 90 days or more past due 21 — — — 99 — — 120 Total past due 57 — 1,096 1 732 — 338 2,224 Current 219,395 242,309 714,783 65,494 111,568 73,154 22,301 1,449,004 Total loans 3 $ 219,452 $ 242,309 $ 715,879 $ 65,495 $ 112,300 $ 73,154 $ 22,639 $ 1,451,228 Non-accrual 2 $ 21 $ — $ 1,903 $ 1 $ 171 $ — $ 83 $ 2,179 1 Our residential loan portfolio does not include 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 thousand of Purchased Credit Impaired ("PCI") loans that had stopped accreting interest at December 31, 2015 . Amounts exclude accreting PCI loans of $2.9 million and $3.7 million at June 30, 2016 and December 31, 2015 , respectively, as we have a reasonable expectation about future cash flows to be collected and we continue to recognize accretable yield on these loans in interest income. These accreting PCI loans are included in current loans. There were no accruing past due loans more than ninety days at June 30, 2016 or December 31, 2015. 3 Amounts include net deferred loan costs of $726 thousand and $768 thousand at June 30, 2016 and December 31, 2015 , respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $2.5 million and $3.2 million at June 30, 2016 and December 31, 2015 , respectively. Our commercial loans are generally made to established small and mid-sized businesses to provide financing for their growth and working capital needs, equipment purchases and/or acquisitions. 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 and/or guarantor support. 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 and/or inventory, and typically include a personal guarantee. We target stable 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. Underwriting standards for commercial real estate loans include, but are not limited to, debt coverage and loan-to-value ratios. Furthermore, the vast majority of our loans are guaranteed by the owners of the properties. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. In the event of a vacancy, guarantors are expected to carry the loans until a replacement tenant can be found. Regardless of the guaranty status, the owner's equity investment provides a strong economic incentive to continue to support the commercial real estate projects. As such, we have generally experienced a relatively low level of loss and delinquencies in this portfolio. Construction loans are generally made to developers and builders to finance construction, renovation and occasionally land acquisitions in anticipation of near-term development. These loans are underwritten after evaluation of the borrower's financial strength, reputation, prior track record, and independent appraisals. The construction industry can be affected by significant events, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes. Estimates of construction costs and value associated with the completed project may be inaccurate. Repayment of construction loans is largely dependent on the ultimate success of the project. Consumer loans primarily consist of home equity lines of credit, other residential (tenancy-in-common, or “TIC”) loans, and installment and other consumer loans. We originate consumer loans utilizing credit score information, debt-to-income ratio and loan-to-value ratio analysis. Diversification, coupled with relatively small loan amounts that are spread across many individual borrowers, mitigates risk. Additionally, trend reports are reviewed by Management on a regular basis. Our residential loan portfolio includes TIC units almost entirely in San Francisco. These loans tend to have more equity in their properties than conventional residential mortgages, which mitigates risk. Installment and other consumer loans include mostly loans for floating homes and mobile homes along with a small number of installment loans. We use a risk rating system to evaluate asset quality, and to identify and monitor credit risk in individual loans, and ultimately in the portfolio. Definitions of loans that are risk graded “Special Mention” or worse are consistent with those used by the Federal Deposit Insurance Corporation ("FDIC"). Our internally assigned grades are as follows: Pass : Loans to borrowers of acceptable or better credit quality. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Bank’s policy regarding debt service coverage ratios. These borrowers are capable of sustaining normal economic, market or operational setbacks without significant financial consequences. 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 in the borrower’s financial condition, managerial weaknesses and/or significant collateral deficiencies. Doubtful : Critical weaknesses that make collection or liquidation in full improbable. There may be specific pending events that work to strengthen the asset; however, the amount or timing of the loss may not be determinable. Pending events generally occur within one year of the asset being classified as Doubtful. Examples include: merger, acquisition, or liquidation; capital injection; guarantee; perfecting liens on additional collateral; and refinancing. Such loans are placed on non-accrual status and usually are collateral-dependent. We regularly review our credits for accuracy of risk grades whenever new information is received. Borrowers are required to submit financial information at regular intervals: • Generally, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk and complexity. • Investor commercial real estate borrowers are generally required to submit rent rolls or property income statements annually. • Construction loans are monitored monthly, and reviewed on an ongoing basis. • Home equity and other consumer loans are reviewed based on delinquency. • Loans graded “Watch” or more severe, regardless of loan type, are reviewed no less than quarterly. The following table represents an analysis of loans by internally assigned grades, including the PCI loans, at June 30, 2016 and December 31, 2015 : Credit Risk Profile by Internally Assigned Grade (in thousands) 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 June 30, 2016 Pass $ 199,923 $ 230,799 $ 697,897 $ 73,786 $ 109,408 $ 73,761 $ 24,162 $ 2,863 $ 1,412,599 Special Mention 11,818 2,101 362 — 1,120 — — — 15,401 Substandard 3,477 8,165 3,484 3,238 1,641 — 394 — 20,399 Total loans $ 215,218 $ 241,065 $ 701,743 $ 77,024 $ 112,169 $ 73,761 $ 24,556 $ 2,863 $ 1,448,399 December 31, 2015 Pass $ 192,560 $ 219,060 $ 710,042 $ 62,255 $ 109,959 $ 73,154 $ 22,307 $ 3,260 $ 1,392,597 Special Mention 22,457 12,371 372 — 1,100 — — — 36,300 Substandard 4,260 9,167 3,739 3,239 1,173 — 332 421 22,331 Total loans $ 219,277 $ 240,598 $ 714,153 $ 65,494 $ 112,232 $ 73,154 $ 22,639 $ 3,681 $ 1,451,228 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 Management considers the borrower’s sustained repayment performance for a reasonable period, generally six months, and obtains reasonable assurance of repayment and performance. A loan may no longer be reported as a TDR if all of the following conditions are met: • The loan is subsequently refinanced or restructured at current market interest rates and the new terms are consistent with the treatment of creditworthy borrowers under regular underwriting standards; • The borrower is no longer considered to be in financial difficulty; • Performance on the loan is reasonably assured; and; • Existing loan did not have any forgiveness of principal or interest. The removal of TDR status must be approved by the same management level that approved the upgrading of the loan classification. There were no loans removed from TDR designation during 2016. During the first six months of 2015, three loans with a recorded investment totaling $396 thousand were removed from TDR designation. The table below summarizes outstanding TDR loans by loan class as of June 30, 2016 and December 31, 2015 . The summary includes both TDRs that are on non-accrual status and those that continue to accrue interest. (in thousands) Recorded investment in Troubled Debt Restructurings 1 June 30, 2016 December 31, 2015 Commercial and industrial $ 3,676 $ 4,698 Commercial real estate, owner-occupied 6,992 6,993 Commercial real estate, investor 2,317 514 Construction 2 3,238 3,238 Home equity 677 460 Other residential 1,987 2,010 Installment and other consumer 1,079 1,168 Total $ 19,966 $ 19,081 1 Includes $19.9 million and $19.0 million of TDR loans that were accruing interest as of June 30, 2016 and December 31, 2015 , respectively. Includes $618 thousand and $137 thousand of acquired loans at June 30, 2016 and December 31, 2015 , respectively. 2 In June 2015, one TDR loan was transferred to loans held-for-sale at fair value totaling $1.5 million , net of an $839 thousand charge-off to the allowance for loan losses. The loan was subsequently sold in June 2015 for no additional gain or loss. The table below presents the following information for loans modified in a TDR during the presented periods: number of contracts modified, the recorded investment in the loans prior to modification, and the recorded investment in the loans after being restructured. The table below excludes fully charged-off TDR loans and loans modified in a TDR and subsequently paid-off during the years presented. (dollars in thousands) 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 June 30, 2016: Commercial real estate, investor 1 $ 281 $ 281 $ 281 Home equity 1 1 87 222 222 Total 2 $ 368 $ 503 $ 503 Troubled Debt Restructurings during the three months ended June 30, 2015: Commercial and industrial 4 $ 782 $ 882 $ 882 Commercial real estate, investor 1 222 221 221 Total 5 $ 1,004 $ 1,103 $ 1,103 Troubled Debt Restructurings during the six months ended June 30, 2016: Commercial real estate, investor 2 $ 1,830 $ 1,826 $ 1,808 Home equity 1 1 87 222 222 Total 3 $ 1,917 $ 2,048 $ 2,030 Troubled Debt Restructurings during the six months ended June 30, 2015: Commercial and industrial 4 $ 782 $ 882 $ 882 Commercial real estate, investor 1 222 221 221 Total 5 $ 1,004 $ 1,103 $ 1,103 1 The home equity TDR modification during the second quarter of 2016 included debt consolidation which increased the post-modification balance. Modifications during the six months ended June 30, 2016 primarily involved interest rate concessions, renewals, and other changes to loan terms. Modifications during the six months ended June 30, 2015 primarily involved maturity extensions and renewals. During the first six months of 2016 and 2015, there were no defaults on loans that had been modified in a TDR 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. (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total June 30, 2016 Recorded investment in impaired loans: With no specific allowance recorded $ 1,059 $ — $ 1,676 $ 2,688 $ 789 $ 1,198 $ 159 $ 7,569 With a specific allowance recorded 2,637 7,169 2,317 550 606 789 982 15,050 Total recorded investment in impaired loans $ 3,696 $ 7,169 $ 3,993 $ 3,238 $ 1,395 $ 1,987 $ 1,141 $ 22,619 Unpaid principal balance of impaired loans $ 3,697 $ 7,169 $ 5,984 $ 3,238 $ 1,411 $ 1,987 $ 1,142 $ 24,628 Specific allowance 671 98 472 5 12 64 99 1,421 Average recorded investment in impaired loans during the quarter ended 3,771 7,081 3,917 3,238 1,286 1,993 1,184 22,470 Interest income recognized on impaired loans during the quarter ended 44 66 22 32 6 23 12 205 Average recorded investment in impaired loans during the six months ended June 30, 2016 4,027 7,037 3,523 3,238 1,077 1,998 1,211 22,111 Interest income recognized on impaired loans during the six months ended June 30, 2016 98 133 38 70 11 45 25 420 Average recorded investment in impaired loans during the quarter ended June 30, 2015 4,173 8,412 2,947 4,475 610 2,033 1,557 24,207 Interest income recognized on impaired loans during the quarter ended June 30, 2015 56 78 8 9 4 23 17 195 Average recorded investment in impaired loans during the six months ended June 30, 2015 3,946 8,427 2,931 5,078 618 2,037 1,650 24,687 Interest income recognized on impaired loans during the six months ended June 30, 2015 118 144 14 18 9 46 36 385 (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total December 31, 2015 Recorded investment in impaired loans: With no specific allowance recorded $ 2,198 $ 4,111 $ 2,416 $ 2,687 $ 171 $ 1,214 $ 131 $ 12,928 With a specific allowance recorded 2,522 2,882 — 551 388 797 1,120 8,260 Total recorded investment in impaired loans $ 4,720 $ 6,993 $ 2,416 $ 3,238 $ 559 $ 2,011 $ 1,251 $ 21,188 Unpaid principal balance of impaired loans $ 4,763 $ 6,993 $ 4,408 $ 3,424 $ 559 $ 2,011 $ 1,251 $ 23,409 Specific allowance $ 912 $ 70 $ — $ 1 $ 3 $ 67 $ 116 $ 1,169 Management monitors delinquent loans continuously and identifies problem loans, generally loans graded substandard or worse, to be evaluated individually for impairment testing. Generally, the recorded investment in impaired loans is net of any charge-offs from estimated losses related to specifically-identified impaired loans when they are deemed uncollectible. The charged-off portion of impaired loans outstanding at June 30, 2016 and December 31, 2015 totaled approximately $2.0 million and $2.1 million , respectively. In addition, the recorded investment in impaired loans is net of purchase discounts or premiums on acquired loans. At June 30, 2016 and December 31, 2015 , unused commitments to extend credit on impaired loans, including loans to borrowers whose terms have been modified in TDRs, totaled $944 thousand and $1.3 million , respectively. The following tables disclose 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 Rollforward for the Period (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 Three months ended June 30, 2016 Allowance for loan losses: Beginning balance $ 2,799 $ 1,619 $ 6,571 $ 822 $ 1,044 $ 430 $ 434 $ 1,309 $ 15,028 Provision (reversal) (192 ) 12 19 9 31 (4 ) (20 ) 145 — Charge-offs — — — — — — (4 ) — (4 ) Recoveries 30 — 5 — 1 — 27 — 63 Ending balance $ 2,637 $ 1,631 $ 6,595 $ 831 $ 1,076 $ 426 $ 437 $ 1,454 $ 15,087 Three months ended June 30, 2015 Allowance for loan losses: Beginning balance $ 2,620 $ 2,094 $ 6,292 $ 778 $ 923 $ 430 $ 462 $ 1,557 $ 15,156 Provision (reversal) (117 ) (42 ) (351 ) 596 (81 ) 5 (14 ) 4 — Charge-offs (1 ) — — (839 ) — — (5 ) — (845 ) Recoveries 38 — 3 — 1 — 1 — 43 Ending balance $ 2,540 $ 2,052 $ 5,944 $ 535 $ 843 $ 435 $ 444 $ 1,561 $ 14,354 Allowance for Loan Losses Rollforward for the Period (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 Six months ended June 30, 2016 Allowance for loan losses: Beginning balance $ 3,023 $ 2,249 $ 6,178 $ 724 $ 910 $ 394 $ 425 $ 1,096 $ 14,999 Provision (reversal) (440 ) (618 ) 407 107 165 32 (11 ) 358 — Charge-offs (9 ) — — — — — (4 ) — (13 ) Recoveries 63 — 10 — 1 — 27 — 101 Ending balance $ 2,637 $ 1,631 $ 6,595 $ 831 $ 1,076 $ 426 $ 437 $ 1,454 $ 15,087 Six months ended June 30, 2015 Allowance for loan losses: Beginning balance $ 2,837 $ 1,924 $ 6,672 $ 839 $ 859 $ 433 $ 566 $ 969 $ 15,099 Provision (reversal) (392 ) 128 (734 ) 535 (18 ) 2 (113 ) 592 — Charge-offs (3 ) — — (839 ) — — (11 ) — (853 ) Recoveries 98 — 6 — 2 — 2 — 108 Ending balance $ 2,540 $ 2,052 $ 5,944 $ 535 $ 843 $ 435 $ 444 $ 1,561 $ 14,354 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 June 30, 2016 Ending ALLL related to loans collectively evaluated for impairment $ 1,966 $ 1,533 $ 6,123 $ 826 $ 1,064 $ 362 $ 338 $ 1,454 $ 13,666 Ending ALLL related to loans individually evaluated for impairment 671 98 472 5 12 64 99 — 1,421 Ending ALLL related to purchased credit-impaired loans — — — — — — — — — Total $ 2,637 $ 1,631 $ 6,595 $ 831 $ 1,076 $ 426 $ 437 $ 1,454 $ 15,087 Loans outstanding: Collectively evaluated for impairment $ 211,522 $ 233,896 $ 697,750 $ 73,786 $ 110,774 $ 71,774 $ 23,415 $ — $ 1,422,917 Individually evaluated for impairment 3,696 7,169 3,993 3,238 1,395 1,987 1,141 — 22,619 Purchased credit-impaired 39 1,038 1,715 — 71 — — — 2,863 Total $ 215,257 $ 242,103 $ 703,458 $ 77,024 $ 112,240 $ 73,761 $ 24,556 $ — $ 1,448,399 Ratio of allowance for loan losses to total loans 1.23 % 0.67 % 0.94 % 1.08 % 0.96 % 0.58 % 1.78 % NM 1.04 % Allowance for loan losses to non-accrual loans 12,557 % 927 % 393 % NM 136 % NM 694 % NM 554 % 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 December 31, 2015 Ending ALLL related to loans collectively evaluated for impairment $ 2,111 $ 2,179 $ 6,178 $ 723 $ 907 $ 327 $ 309 $ 1,096 $ 13,830 Ending ALLL related to loans individually evaluated for impairment 904 70 — — 3 67 116 — 1,160 Ending ALLL related to purchased credit-impaired loans 8 — — 1 — — — — 9 Total $ 3,023 $ 2,249 $ 6,178 $ 724 $ 910 $ 394 $ 425 $ 1,096 $ 14,999 Loans outstanding: Collectively evaluated for impairment $ 214,695 $ 233,605 $ 711,737 $ 62,256 $ 111,673 $ 71,143 $ 21,388 $ — $ 1,426,497 Individually evaluated for impairment 1 4,582 6,993 2,416 3,238 559 2,011 1,251 — 21,050 Purchased credit-impaired 175 1,711 1,726 1 68 — — — 3,681 Total $ 219,452 $ 242,309 $ 715,879 $ 65,495 $ 112,300 $ 73,154 $ 22,639 $ — $ 1,451,228 Ratio of allowance for loan losses to total loans 1.38 % 0.93 % 0.86 % 1.11 % 0.81 % 0.54 % 1.88 % NM 1.03 % Allowance for loan losses to non-accrual loans 14,395 % NM 325 % 72,400 % 532 % NM 512 % NM 688 % 1 Total excludes $138 thousand PCI loans as of December 31, 2015 that have experienced credit deterioration 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 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 significant 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 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. For acquired loans not considered credit-impaired, the difference between the contractual amounts due (principal amount) and the fair value is accounted for subsequently through accretion. We recognize discount accretion based on the acquired loan’s contractual cash flows using an effective interest rate method. The accretion is recognized through the net interest margin. The following table presents the outstanding balances and related carrying values of PCI loans as of June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 PCI Loans (in thousands) Unpaid principal balance Carrying value Unpaid principal balance Carrying value Commercial and industrial $ 50 $ 39 $ 237 $ 175 Commercial real estate 3,104 2,753 4,329 3,437 Construction — — 187 1 Home equity 221 71 224 68 Total purchased credit-impaired loans $ 3,375 $ 2,863 $ 4,977 $ 3,681 The activities in the accretable yield, or income expected to be earned, for PCI loans were as follows: Accretable Yield Three months ended Six months ended (in thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Balance at beginning of period $ 1,742 $ 3,831 $ 2,618 $ 4,027 Removals 1 — — (778 ) (77 ) Accretion (87 ) (120 ) (185 ) (239 ) Reclassifications from nonaccretable difference 2 — — — — Balance at end of period $ 1,655 $ 3,711 $ 1,655 $ 3,711 1 Represents the accretable difference that is relieved when a loan exits the PCI population due to pay-off, full charge-off, or transfer to repossessed assets, etc. 2 Primarily relates to changes in expected credit performance and changes in expected timing of cash flows. Pledged Loans Our FHLB line of credit is secured under terms of a blanket collateral agreement by a pledge of certain qualifying loans with an unpaid principal balance of $861.9 million and $833.8 million at June 30, 2016 and December 31, 2015 , respectively. In addition, we pledge a certain residential loan portfolio, which totaled $48.4 million and $45.2 million at June 30, 2016 and December 31, 2015 , respectively, to secure our borrowing capacity with the Federal Reserve Bank ( “ FRB ” ). Also see Note 6, Borrowings. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Federal Funds Purchased – The Bank had unsecured lines of credit totaling $92.0 million with correspondent banks for overnight borrowings at June 30, 2016 and December 31, 2015 . In general, interest rates on these lines approximate the federal funds target rate. We had no overnight borrowings under these credit facilities at June 30, 2016 and December 31, 2015 . Federal Home Loan Bank Borrowings – As of June 30, 2016 and December 31, 2015 , the Bank had lines of credit with the FHLB totaling $485.9 million and $470.6 million , respectively, based on eligible collateral of certain loans. At June 30, 2016 , we had no FHLB overnight borrowings and at December 31, 2015 , we had $52.0 million in FHLB overnight borrowings. On February 5, 2008, the Bank 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% . On June 15, 2016, the Bank repaid the $15.0 million early and incurred a prepayment fee of $312 thousand recorded in interest expense. At June 30, 2016 and December 31, 2015 , $485.9 million and $403.4 million , respectively, were remaining as available for borrowing from the FHLB, net of the overnight borrowings and term borrowings. Federal Reserve Line of Credit – The Bank has a line of credit with the FRB secured by certain residential loans. At June 30, 2016 and December 31, 2015 , the Bank had borrowing capacity under this line totaling $40.1 million and $37.8 million , respectively, and had no outstanding borrowings with the FRB. As part of an acquisition, Bancorp assumed two subordinated debentures due to NorCal Community Bancorp Trusts I and II (the "Trusts"), established for the sole purpose of issuing trust preferred securities on September 22, 2003 and December 29, 2005, respectively. The subordinated debentures were recorded at fair values totaling $4.95 million at acquisition date with 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 $98 thousand in the first six months of 2016 and $106 thousand in the first six months of 2015. Bancorp has the option to defer payment of the interest on the subordinated debentures 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 Bancorp 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 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 the Trusts as of June 30, 2016 : (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 (3.68% as of June 30, 2016), 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 (2.05% as of June 30, 2016), redeemable, in whole or in part, on any interest payment date 4,124 Total $ 8,248 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Warrant Under the United States Department of the Treasury Capital Purchase Program (the “TCPP”), Bancorp issued to the U.S. Treasury a warrant to purchase 154,242 shares of common stock at a per share exercise price of $27.23 . The warrant was immediately exercisable and had an expiration date of December 5, 2018. The warrant was subsequently auctioned to two institutional investors in November 2011 and was exercised in September 2015. The warrant represented the right to purchase 157,711 shares of common stock at $26.63 per share. The cashless exercise resulted in the net issuance of 70,591 shares of common stock in September 2015. Dividends Presented below is a summary of cash dividends paid to common shareholders, recorded as a reduction of retained earnings. Three months ended Six months ended (in thousands, except per share data) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Cash dividends to common stockholders $ 1,526 $ 1,313 $ 3,044 $ 2,620 Cash dividends per common share $ 0.25 $ 0.22 $ 0.50 $ 0.44 The Board of Directors declared a cash dividend of $0.25 per share on July 22, 2016 payable on August 12, 2016 to shareholders of record at the close of business on August 5, 2016. Share-Based Payments The fair value of stock options as of the grant date is recorded as 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 stock awards and performance-based stock awards pursuant to the 2007 Equity Plan. The grant-date fair value of the restricted stock awards and performance-based stock awards, which is equal to the 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. Beginning in 2015, performance-based stock awards were issued to a selected group of employees. Stock award vesting is contingent upon the achievement of pre-established long-term performance goals set by the Compensation Committee of the Board of Directors. Performance is measured over a three -year period and cliff vested. These performance-based stock awards were granted at a maximum opportunity level, and based on the achievement of the pre-established goals, the actual payouts can range from 0% to 200% of the target award. For performance-based stock awards, an estimate is made of the number of shares expected to vest based on the probability that the performance criteria will be achieved to determine the amount of compensation expense to be recognized. The estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in the current period. In addition, we record excess tax benefits on the exercise of non-qualified stock options, the disqualifying disposition of incentive stock options and vesting of restricted stock awards as an addition to common stock with a corresponding decrease in current taxes payable. The holders of unvested restricted stock awards and performance-based stock awards 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 | 6 Months Ended |
Jun. 30, 2016 | |
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. Because various commitments will 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 contractual amount of the commitment in the event of nonperformance by the borrower. We use the same credit underwriting criteria for all credit exposure. The amount of collateral obtained, if deemed necessary by us, is based on Management's credit evaluation of the borrower. Collateral types pledged may include accounts receivable, inventory, other personal property and real property. The contractual amount of undrawn loan commitments and standby letters of credit not reflected on the consolidated statements of condition was $418.2 million and $376.6 million at June 30, 2016 and December 31, 2015, respectively. Commitments at June 30, 2016 included $213.3 million under commercial lines of credit (these commitments are generally contingent upon customers maintaining specific credit standards), $143.7 million under revolving home equity lines, $46.8 million under construction loans, $3.6 million under standby letters of credit, and a remaining $10.8 million under personal and other lines of credit. We record an allowance for losses on these off-balance sheet commitments based on an estimate of probabilities of these commitments being drawn upon according to our historical utilization experience on different types of commitments and expected loss severity. We set aside an allowance for losses on off-balance sheet commitments in the amount of $899 thousand and $749 thousand as of June 30, 2016 and December 31, 2015, respectively, which is recorded in interest payable and other liabilities on the consolidated statements of condition. The increase in the reserve for off-balance sheet commitments for the first six months of 2016 was primarily due to an increase in commitments and a decrease in utilization. Operating Leases We rent certain premises and equipment under long-term, non-cancelable operating leases expiring at various dates through the year 2032. Most of the leases contain certain renewal options and escalation clauses. At June 30, 2016 , the approximate minimum future commitments payable under non-cancelable contracts for leased premises are as follows: (in thousands) 2016 2017 2018 2019 2020 Thereafter Total Operating leases 1 $ 1,773 $ 3,576 $ 3,594 $ 3,567 $ 3,328 $ 5,895 $ 21,733 1 Minimum payments have not been reduced by minimum sublease rentals of $200 thousand due in the future under non-cancelable subleases. Rent expense included in occupancy expense totaled $1.9 million and $2.2 million for the six months ended June 30, 2016 and 2015 , respectively. 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 contingent liability, if any, will not have a material adverse effect on our financial position, results of operations, or cash flows. We are responsible for our proportionate share of certain litigation indemnifications provided to Visa U.S.A. ("Visa") by its member banks in connection with lawsuits related to anti-trust charges and interchange fees ("Covered Litigation"). Visa maintains an escrow account from which settlements of, or judgments in, the Covered Litigation are paid. While the accrual related to the Covered Litigation could be higher or lower than the litigation escrow account balance, Visa did not record an additional accrual for the Covered Litigation during 2016. At June 30, 2016, the balance of the escrow account was $1.0 billion . Visa had reached a $4.0 billion interchange multidistrict litigation class settlement agreement. However, a number of objectors have appealed and on June 30, 2016, an appellate court reversed the approval of the settlement by the lower court. Until the appeal process is complete, Visa is uncertain whether it will resolve the claims as contemplated by the settlement agreement and additional lawsuits may arise. The conversion rate of Visa Class B common stock held by us to Class A common stock (as discussed in Note 4, Investment Securities) may decrease if Visa makes more Covered Litigation settlement payments in the future, and the full effect on 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 Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
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). 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. 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. When the fixed-rate loans are originated, the forward swaps are designated to offset the change in fair value in the loans. 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 is 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 agreements 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. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values. As of June 30, 2016 , we had six interest rate swap agreements, which are scheduled to mature in August 2020, June 2031, October 2031, July 2032, August 2037 and October 2037. All of our derivatives are accounted for as fair value hedges. In April 2016, one interest rate swap scheduled to mature in June 2020 was terminated as the hedged loan was paid off. A prepayment fee was collected from the borrower to settle our interest rate swap liability, resulting in no net gain or loss on the termination of the swap and loan payoff. Our interest rate swaps are settled monthly with counterparties. Accrued interest on the swaps totaled $16 thousand and $28 thousand as of June 30, 2016 and December 31, 2015 , respectively. Information on our derivatives follows: Asset derivatives Liability derivatives (in thousands) June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Fair value hedges: Interest rate contracts notional amount $ — $ 4,407 $ 22,527 $ 22,187 Interest rate contracts fair value 1 $ — $ 3 $ 2,721 $ 1,658 Three months ended (in thousands) June 30, 2016 June 30, 2015 (Decrease) increase in value of designated interest rate swaps recognized in interest income $ (190 ) $ 966 Payment on interest rate swaps recorded in interest income (138 ) (233 ) Increase (decrease) in value of hedged loans recognized in interest income 240 (1,023 ) Decrease in value of yield maintenance agreement recognized against interest income (11 ) (13 ) Net loss on derivatives recognized against interest income 2 $ (99 ) $ (303 ) Six months ended (in thousands) June 30, 2016 June 30, 2015 (Decrease) increase in value of designated interest rate swaps recognized in interest income $ (1,066 ) $ 420 Payment on interest rate swaps recorded in interest income (313 ) (469 ) Increase (decrease) in value of hedged loans recognized in interest income 1,290 (451 ) Decrease in value of yield maintenance agreement recognized against interest income (23 ) (27 ) Net loss on derivatives recognized against interest income 2 $ (112 ) $ (527 ) 1 See Note 3 for valuation methodology. 2 Includes hedge ineffectiveness gain of $39 thousand and loss of $70 thousand for the quarters ended June 30, 2016 and June 30, 2015 , respectively. Ineffectiveness gain of $201 thousand and loss of $58 thousand was recorded in interest income during the six months ended June 30, 2016 and June 30, 2015 , respectively. Changes in value of swaps were included in the assessment of hedge effectiveness. Hedge ineffectiveness is the measure of the extent to which the change in the fair value of the hedging instruments does not exactly offset the change in the fair value of the hedged items from period to period. 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 Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Assets Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral ( in thousands) Assets 1 Condition of Condition 1 Instruments Received Net Amount June 30, 2016 Derivatives by Counterparty: None $ — $ — $ — $ — $ — $ — December 31, 2015 Derivatives by Counterparty: Counterparty A $ 3 $ — $ 3 $ (3 ) $ — $ — 1 Amounts exclude accrued interest totaling zero and $1 thousand at June 30, 2016 and December 31, 2015 , respectively. Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Liabilities Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral (in thousands) Liabilities 2 Condition of Condition 2 Instruments Pledged Net Amount June 30, 2016 Derivatives by Counterparty: Counterparty A $ 2,721 $ — $ 2,721 $ — $ (2,390 ) $ 331 3 December 31, 2015 Derivatives by Counterparty: Counterparty A $ 1,390 $ — $ 1,390 $ (3 ) $ (1,387 ) $ — Counterparty B 268 — 268 — (268 ) — Total $ 1,658 $ — $ 1,658 $ (3 ) $ (1,655 ) $ — 2 Amounts exclude accrued interest totaling $16 thousand and $27 thousand at June 30, 2016 and December 31, 2015 , respectively. 3 The under-collateralized position was covered subsequent to June 30, 2016. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Bank of Marin Bancorp (“Bancorp”), a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin (the “Bank”), a California state-chartered commercial bank. References to “we,” “our,” “us” mean the holding company and the Bank that are consolidated for financial reporting purposes. The accompanying unaudited consolidated interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. Although we believe that the disclosures are adequate and the information presented is not misleading, we suggest that these interim financial statements be read in conjunction with the annual financial statements and the notes thereto included in our 2015 Annual Report on Form 10-K. In the opinion of Management, the unaudited consolidated financial statements reflect all adjustments which are necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income, changes in stockholders’ equity, and cash flows for the periods presented. All material intercompany transactions have been eliminated. The results of these interim periods may not be indicative of the results for the full year or for any other period. We have evaluated subsequent events through the date of filing with the SEC and have determined that there are no subsequent events that require additional recognition or disclosure. The NorCal Community Bancorp Trusts I and II, respectively (the "Trusts") 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 (See Note 6, Borrowings). Bancorp's investment in the securities 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. |
Earnings Per Share | 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 awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares, which is based on average market prices during the three months of the reporting period, under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. We have two forms of our outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Therefore, under the two-class method, the difference in EPS is not significant for these participating securities. |
Recently Issued Accounting Standards | In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU is a converged standard involving FASB and International Financial Reporting Standards that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount and at a time that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Subsequent updates related to Revenue from Contracts with Customers (Topic 606) are as follows: • August 2015 ASU No. 2015-14 - Deferral of the Effective Date , institutes a one-year deferral of the effective date of this amendment to annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual periods beginning after December 15, 2016, including interim reporting periods within that reporting period. • March 2016 ASU No. 2016-08 - Principal versus Agent Considerations (Reporting Revenue Gross versus Net), clarifies the implementation guidance on principal versus agent considerations and on the use of indicators that assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. • April 2016 ASU No. 2016-10 - Identifying Performance Obligations and Licensing, provides guidance in determining performance obligations in a contract with a customer and clarifies whether a promise to grant a license provides a right to access or the right to use intellectual property. • May 2016 ASU No. 2016-12 - Narrow Scope Improvements and Practical Expedients , gives further guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. We are currently evaluating the provisions of these updates and will be monitoring developments and additional guidance to determine the potential impact the new standards will have on our financial condition and results of operations. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in this ASU make improvements to GAAP related to financial instruments that include the following as applicable to us. • Equity investments, except for those accounted for under the equity method of accounting or those that result in consolidation of the investee, are required to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. • Simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment - if impairment exists, this requires measuring the investment at fair value. • Eliminates the requirement for public companies to disclose the method(s) and significant assumptions used to estimate the fair value that is currently required to be disclosed for financial instruments measured at amortized cost on the balance sheet. • Public companies will be required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. • The reporting entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. ASU 2016-01 is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This ASU will impact our financial statement disclosures, however, we do not expect it to have a material impact on our financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities, including leases classified as operating leases under previous GAAP, on the balance sheet and requiring additional disclosures of key information about leasing arrangements. This ASU applies to leasing arrangements exceeding a twelve month term. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods beginning after December 15, 2018 and requires a modified retrospective method upon adoption. Early application of the amendments is permitted. We are currently evaluating the provisions of this ASU and will be monitoring developments and additional guidance to determine the timing of our adoption and the potential outcome the amendments will have on our financial condition and results of operations. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships . A contract novation refers to replacing one of the parties to a derivative instrument with a new party. This ASU clarifies that a change in counterparty in a derivative instrument does not, in and of itself, require dedesignation of that hedging relationship and therefore discontinue the application of hedge accounting. ASU 2016-05 is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. We do not expect this ASU to have a material impact on our financial condition or results of operations. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This ASU identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture accounting, and classifications on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. We are currently evaluating the the provisions of this ASU and will be monitoring developments and additional guidance to determine the potential outcome the amendments will have on our financial condition and results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses, requiring a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is likely to result in more timely recognition of such losses. In addition, the accounting for purchased credit impaired financial assets will make the allowance for credit losses more comparable between originated assets and purchased financial assets, as well as reduce complexity with the accounting for interest income. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the provisions of this ASU and will be monitoring developments and additional guidance to determine the timing of our adoption and the potential outcome the amendments will have on our financial condition and results of operations. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 dilutive weighted average common shares related to stock options, unvested restricted stock awards 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 awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares, which is based on average market prices during the three months of the reporting period, under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. We have two forms of our outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Therefore, under the two-class method, the difference in EPS is not significant for these participating securities. Three months ended Six months ended (in thousands, except per share data) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Weighted average basic shares outstanding 6,078 5,945 6,063 5,933 Potentially dilutive common shares related to: Stock options 27 41 31 44 Unvested restricted stock awards 4 3 6 4 Warrant — 73 — 74 Weighted average diluted shares outstanding 6,109 6,062 6,100 6,055 Net income $ 4,837 $ 4,286 $ 10,483 $ 8,743 Basic EPS $ 0.80 $ 0.72 $ 1.73 $ 1.47 Diluted EPS $ 0.79 $ 0.71 $ 1.72 $ 1.44 Weighted average anti-dilutive shares not included in the calculation of diluted EPS 70 41 60 34 |
Fair Value of Assets and Liab18
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis. (in thousands) Description of Financial Instruments Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 Securities available-for-sale: Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies $ 167,407 $ — $ 166,750 $ 657 Debentures of government-sponsored agencies 83,758 — 83,758 — Privately-issued collateralized mortgage obligations 768 — 768 — Obligations of state and political subdivisions 66,452 — 66,452 — Corporate bonds 4,976 — 4,976 — Derivative financial liabilities (interest rate contracts) 2,721 — 2,721 — December 31, 2015 Securities available-for-sale: Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies $ 190,093 $ — $ 188,381 $ 1,712 Debentures of government-sponsored agencies 160,892 — 160,892 — Privately-issued collateralized mortgage obligations 4,150 — 4,150 — Obligations of state and political subdivisions 57,673 — 57,673 — Corporate bonds 4,979 — 4,979 — Derivative financial assets (interest rate contracts) 3 — 3 — Derivative financial liabilities (interest rate contracts) 1,658 — 1,658 — |
Fair Value Measurements, Nonrecurring | The following table presents the carrying value of assets and liabilities measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of June 30, 2016 and December 31, 2015 . (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) June 30, 2016 Impaired loans 1 $ 171 $ — $ — $ 171 Other real estate owned 408 — — 408 December 31, 2015 Impaired loans $ — $ — $ — $ — Other real estate owned 421 — — 421 1 Represents collateral-dependent loan principal balances that had been generally written down to the values of the underlying collateral and reflected net of specific valuation allowances. At June 30, 2016, the $171 thousand carrying value of a consumer loan was net of a $5 thousand specific valuation allowance. 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 June 30, 2016 and December 31, 2015 , 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. June 30, 2016 December 31, 2015 (in thousands) Carrying Amounts Fair Value Fair Value Hierarchy Carrying Amounts Fair Value Fair Value Hierarchy Financial assets Cash and cash equivalents $ 55,438 $ 55,438 Level 1 $ 26,343 $ 26,343 Level 1 Investment securities held-to-maturity 58,491 60,160 Level 2 69,637 71,054 Level 2 Loans, net 1,433,312 1,453,254 Level 3 1,436,229 1,470,380 Level 3 Interest receivable 5,968 5,968 Level 2 6,643 6,643 Level 2 Financial liabilities Deposits 1,705,615 1,705,937 Level 2 1,728,226 1,728,717 Level 2 Federal Home Loan Bank and other borrowings — — Level 2 67,000 67,279 Level 2 Subordinated debentures 5,493 5,108 Level 3 5,395 5,132 Level 3 Interest payable 137 137 Level 2 187 187 Level 2 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, Federal Farm Credit Bureau, FHLB and FHLMC, as well as privately issued CMOs, as reflected in the table below: June 30, 2016 December 31, 2015 Amortized Fair Gross Unrealized Amortized Fair Gross Unrealized (in thousands) Cost Value Gains (Losses) Cost Value Gains (Losses) Held-to-maturity: Obligations of state and political subdivisions $ 39,009 $ 40,337 $ 1,336 $ (8 ) $ 42,919 $ 44,146 $ 1,246 $ (19 ) Corporate bonds 8,529 8,534 6 (1 ) 15,072 15,098 42 (16 ) MBS pass-through securities issued by FHLMC and FNMA 10,953 11,289 336 — 11,646 11,810 171 (7 ) Total held-to-maturity 58,491 60,160 1,678 (9 ) 69,637 71,054 1,459 (42 ) Available-for-sale: Securities of U.S. government or government-sponsored agencies: MBS pass-through securities issued by FHLMC and FNMA 111,682 113,877 2,195 — 138,222 138,462 694 (454 ) CMOs issued by FNMA 23,061 23,387 331 (5 ) 18,266 18,219 97 (144 ) CMOs issued by FHLMC 21,110 21,451 341 — 22,889 22,932 82 (39 ) CMOs issued by GNMA 8,470 8,692 222 — 10,326 10,480 169 (15 ) Debentures of government- sponsored agencies 83,566 83,758 193 (1 ) 161,690 160,892 28 (826 ) Privately issued CMOs 768 768 1 (1 ) 3,960 4,150 190 — Obligations of state and political subdivisions 64,725 66,452 1,729 (2 ) 57,110 57,673 580 (17 ) Corporate bonds 4,954 4,976 25 (3 ) 4,947 4,979 43 (11 ) Total available-for-sale 318,336 323,361 5,037 (12 ) 417,410 417,787 1,883 (1,506 ) Total investment securities $ 376,827 $ 383,521 $ 6,715 $ (21 ) $ 487,047 $ 488,841 $ 3,342 $ (1,548 ) |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investment debt securities by contractual maturity at June 30, 2016 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. June 30, 2016 December 31, 2015 Held-to-Maturity Available-for-Sale Held-to-Maturity Available-for-Sale (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 19,481 $ 19,545 $ 2,412 $ 2,416 $ 18,853 $ 18,920 $ 12,135 $ 12,176 After one year but within five years 21,203 21,929 114,702 115,207 31,677 32,360 188,007 187,326 After five years through ten years 5,646 6,068 65,766 67,170 8,580 8,969 64,899 64,999 After ten years 12,161 12,618 135,456 138,568 10,527 10,805 152,369 153,286 Total $ 58,491 $ 60,160 $ 318,336 $ 323,361 $ 69,637 $ 71,054 $ 417,410 $ 417,787 |
Schedule of Realized Gain (Loss) | Sales of investment securities and gross realized gains and losses are shown in the following table. Three months ended Six months ended (in thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Available-for-sale: Sales proceeds $ 13,688 $ 1,559 $ 68,673 $ 1,559 Gross realized gains 284 8 458 8 Gross realized losses — — (64 ) — |
Schedule of Unrealized Loss on Investments | Those securities are summarized and classified according to the duration of the loss period in the tables below: June 30, 2016 < 12 continuous months ≥ 12 continuous months Total securities in a loss position (in thousands) Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Held-to-maturity: Obligations of state and political subdivisions $ 1,058 $ (8 ) $ — $ — $ 1,058 $ (8 ) Corporate bonds 5,000 (1 ) — — 5,000 (1 ) MBS pass-through securities issued by FHLMC and FNMA — — — — — — Total held-to-maturity 6,058 (9 ) — — 6,058 (9 ) Available-for-sale: MBS pass-through securities issued by FHLMC and FNMA — — — — — — CMOs issued by FNMA — — 2,811 (5 ) 2,811 (5 ) CMOs issued by FHLMC — — — — — — CMOs issued by GNMA — — — — — — Debentures of government- sponsored agencies 9,997 (1 ) — — 9,997 (1 ) Privately issued CMOs 182 (1 ) — — 182 (1 ) Obligations of state & political subdivisions 1,918 (2 ) — — 1,918 (2 ) Corporate bonds 1,990 (3 ) — — 1,990 (3 ) Total available-for-sale 14,087 (7 ) 2,811 (5 ) 16,898 (12 ) Total temporarily impaired securities $ 20,145 $ (16 ) $ 2,811 $ (5 ) $ 22,956 $ (21 ) December 31, 2015 < 12 continuous months ≥ 12 continuous months Total securities in a loss position (in thousands) Fair value Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Held-to-maturity: Obligations of state and political subdivisions $ 8,297 $ (19 ) $ — $ — $ 8,297 $ (19 ) Corporate bonds 3,523 (15 ) 1,999 (1 ) 5,522 (16 ) MBS pass-through securities issued by FHLMC and FNMA 2,332 (7 ) — — 2,332 (7 ) Total held-to-maturity 14,152 (41 ) 1,999 (1 ) 16,151 (42 ) Available-for-sale: MBS pass-through securities issued by FHLMC and FNMA 68,809 (454 ) — — 68,809 (454 ) CMOs issued by FNMA 9,277 (80 ) 3,158 (64 ) 12,435 (144 ) CMOs issued by FHLMC — — 1,989 (39 ) 1,989 (39 ) CMOs issued by GNMA 164 — 2,374 (15 ) 2,538 (15 ) Debentures of government- sponsored agencies 136,064 (713 ) 9,887 (113 ) 145,951 (826 ) Obligations of state & political subdivisions 4,557 (15 ) 579 (2 ) 5,136 (17 ) Corporate bonds 2,986 (11 ) — — 2,986 (11 ) Total available-for-sale 221,857 (1,273 ) 17,987 (233 ) 239,844 (1,506 ) Total temporarily impaired securities $ 236,009 $ (1,314 ) $ 19,986 $ (234 ) $ 255,995 $ (1,548 ) |
Loans and Allowance for Loan 20
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Past Due Financing Receivables | Outstanding loans by class and payment aging as of June 30, 2016 and December 31, 2015 were as follows: Loan Aging Analysis by Loan Class (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential 1 Installment and other consumer Total June 30, 2016 30-59 days past due $ 44 $ — $ — $ — $ 780 $ — $ — $ 824 60-89 days past due — — 1,676 — — — 63 1,739 90 days or more past due 21 176 — — 99 — — 296 Total past due 65 176 1,676 — 879 — 63 2,859 Current 215,192 241,927 701,782 77,024 111,361 73,761 24,493 1,445,540 Total loans 3 $ 215,257 $ 242,103 $ 703,458 $ 77,024 $ 112,240 $ 73,761 $ 24,556 $ 1,448,399 Non-accrual 2 $ 21 $ 176 $ 1,676 $ — $ 789 $ — $ 63 $ 2,725 December 31, 2015 30-59 days past due $ 36 $ — $ 1,096 $ 1 $ — $ — $ 249 $ 1,382 60-89 days past due — — — — 633 — 89 722 90 days or more past due 21 — — — 99 — — 120 Total past due 57 — 1,096 1 732 — 338 2,224 Current 219,395 242,309 714,783 65,494 111,568 73,154 22,301 1,449,004 Total loans 3 $ 219,452 $ 242,309 $ 715,879 $ 65,495 $ 112,300 $ 73,154 $ 22,639 $ 1,451,228 Non-accrual 2 $ 21 $ — $ 1,903 $ 1 $ 171 $ — $ 83 $ 2,179 1 Our residential loan portfolio does not include 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 thousand of Purchased Credit Impaired ("PCI") loans that had stopped accreting interest at December 31, 2015 . Amounts exclude accreting PCI loans of $2.9 million and $3.7 million at June 30, 2016 and December 31, 2015 , respectively, as we have a reasonable expectation about future cash flows to be collected and we continue to recognize accretable yield on these loans in interest income. These accreting PCI loans are included in current loans. There were no accruing past due loans more than ninety days at June 30, 2016 or December 31, 2015. 3 Amounts include net deferred loan costs of $726 thousand and $768 thousand at June 30, 2016 and December 31, 2015 , respectively. Amounts are also net of unaccreted purchase discounts on non-PCI loans of $2.5 million and $3.2 million at June 30, 2016 and December 31, 2015 , respectively. |
Financing Receivable Credit Quality Indicators | The following table represents an analysis of loans by internally assigned grades, including the PCI loans, at June 30, 2016 and December 31, 2015 : Credit Risk Profile by Internally Assigned Grade (in thousands) 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 June 30, 2016 Pass $ 199,923 $ 230,799 $ 697,897 $ 73,786 $ 109,408 $ 73,761 $ 24,162 $ 2,863 $ 1,412,599 Special Mention 11,818 2,101 362 — 1,120 — — — 15,401 Substandard 3,477 8,165 3,484 3,238 1,641 — 394 — 20,399 Total loans $ 215,218 $ 241,065 $ 701,743 $ 77,024 $ 112,169 $ 73,761 $ 24,556 $ 2,863 $ 1,448,399 December 31, 2015 Pass $ 192,560 $ 219,060 $ 710,042 $ 62,255 $ 109,959 $ 73,154 $ 22,307 $ 3,260 $ 1,392,597 Special Mention 22,457 12,371 372 — 1,100 — — — 36,300 Substandard 4,260 9,167 3,739 3,239 1,173 — 332 421 22,331 Total loans $ 219,277 $ 240,598 $ 714,153 $ 65,494 $ 112,232 $ 73,154 $ 22,639 $ 3,681 $ 1,451,228 |
Troubled Debt Restructurings on Financing Receivables | The table below summarizes outstanding TDR loans by loan class as of June 30, 2016 and December 31, 2015 . The summary includes both TDRs that are on non-accrual status and those that continue to accrue interest. (in thousands) Recorded investment in Troubled Debt Restructurings 1 June 30, 2016 December 31, 2015 Commercial and industrial $ 3,676 $ 4,698 Commercial real estate, owner-occupied 6,992 6,993 Commercial real estate, investor 2,317 514 Construction 2 3,238 3,238 Home equity 677 460 Other residential 1,987 2,010 Installment and other consumer 1,079 1,168 Total $ 19,966 $ 19,081 1 Includes $19.9 million and $19.0 million of TDR loans that were accruing interest as of June 30, 2016 and December 31, 2015 , respectively. Includes $618 thousand and $137 thousand of acquired loans at June 30, 2016 and December 31, 2015 , respectively. 2 In June 2015, one TDR loan was transferred to loans held-for-sale at fair value totaling $1.5 million , net of an $839 thousand charge-off to the allowance for loan losses. The loan was subsequently sold in June 2015 for no additional gain or loss. The table below presents the following information for loans modified in a TDR during the presented periods: number of contracts modified, the recorded investment in the loans prior to modification, and the recorded investment in the loans after being restructured. The table below excludes fully charged-off TDR loans and loans modified in a TDR and subsequently paid-off during the years presented. (dollars in thousands) 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 June 30, 2016: Commercial real estate, investor 1 $ 281 $ 281 $ 281 Home equity 1 1 87 222 222 Total 2 $ 368 $ 503 $ 503 Troubled Debt Restructurings during the three months ended June 30, 2015: Commercial and industrial 4 $ 782 $ 882 $ 882 Commercial real estate, investor 1 222 221 221 Total 5 $ 1,004 $ 1,103 $ 1,103 Troubled Debt Restructurings during the six months ended June 30, 2016: Commercial real estate, investor 2 $ 1,830 $ 1,826 $ 1,808 Home equity 1 1 87 222 222 Total 3 $ 1,917 $ 2,048 $ 2,030 Troubled Debt Restructurings during the six months ended June 30, 2015: Commercial and industrial 4 $ 782 $ 882 $ 882 Commercial real estate, investor 1 222 221 221 Total 5 $ 1,004 $ 1,103 $ 1,103 1 The home equity TDR modification during the second quarter of 2016 included debt consolidation which increased the post-modification balance. |
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. (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total June 30, 2016 Recorded investment in impaired loans: With no specific allowance recorded $ 1,059 $ — $ 1,676 $ 2,688 $ 789 $ 1,198 $ 159 $ 7,569 With a specific allowance recorded 2,637 7,169 2,317 550 606 789 982 15,050 Total recorded investment in impaired loans $ 3,696 $ 7,169 $ 3,993 $ 3,238 $ 1,395 $ 1,987 $ 1,141 $ 22,619 Unpaid principal balance of impaired loans $ 3,697 $ 7,169 $ 5,984 $ 3,238 $ 1,411 $ 1,987 $ 1,142 $ 24,628 Specific allowance 671 98 472 5 12 64 99 1,421 Average recorded investment in impaired loans during the quarter ended 3,771 7,081 3,917 3,238 1,286 1,993 1,184 22,470 Interest income recognized on impaired loans during the quarter ended 44 66 22 32 6 23 12 205 Average recorded investment in impaired loans during the six months ended June 30, 2016 4,027 7,037 3,523 3,238 1,077 1,998 1,211 22,111 Interest income recognized on impaired loans during the six months ended June 30, 2016 98 133 38 70 11 45 25 420 Average recorded investment in impaired loans during the quarter ended June 30, 2015 4,173 8,412 2,947 4,475 610 2,033 1,557 24,207 Interest income recognized on impaired loans during the quarter ended June 30, 2015 56 78 8 9 4 23 17 195 Average recorded investment in impaired loans during the six months ended June 30, 2015 3,946 8,427 2,931 5,078 618 2,037 1,650 24,687 Interest income recognized on impaired loans during the six months ended June 30, 2015 118 144 14 18 9 46 36 385 (in thousands) Commercial and industrial Commercial real estate, owner-occupied Commercial real estate, investor Construction Home equity Other residential Installment and other consumer Total December 31, 2015 Recorded investment in impaired loans: With no specific allowance recorded $ 2,198 $ 4,111 $ 2,416 $ 2,687 $ 171 $ 1,214 $ 131 $ 12,928 With a specific allowance recorded 2,522 2,882 — 551 388 797 1,120 8,260 Total recorded investment in impaired loans $ 4,720 $ 6,993 $ 2,416 $ 3,238 $ 559 $ 2,011 $ 1,251 $ 21,188 Unpaid principal balance of impaired loans $ 4,763 $ 6,993 $ 4,408 $ 3,424 $ 559 $ 2,011 $ 1,251 $ 23,409 Specific allowance $ 912 $ 70 $ — $ 1 $ 3 $ 67 $ 116 $ 1,169 |
Allowance for Credit Losses on Financing Receivables | The following tables disclose 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 Rollforward for the Period (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 Three months ended June 30, 2016 Allowance for loan losses: Beginning balance $ 2,799 $ 1,619 $ 6,571 $ 822 $ 1,044 $ 430 $ 434 $ 1,309 $ 15,028 Provision (reversal) (192 ) 12 19 9 31 (4 ) (20 ) 145 — Charge-offs — — — — — — (4 ) — (4 ) Recoveries 30 — 5 — 1 — 27 — 63 Ending balance $ 2,637 $ 1,631 $ 6,595 $ 831 $ 1,076 $ 426 $ 437 $ 1,454 $ 15,087 Three months ended June 30, 2015 Allowance for loan losses: Beginning balance $ 2,620 $ 2,094 $ 6,292 $ 778 $ 923 $ 430 $ 462 $ 1,557 $ 15,156 Provision (reversal) (117 ) (42 ) (351 ) 596 (81 ) 5 (14 ) 4 — Charge-offs (1 ) — — (839 ) — — (5 ) — (845 ) Recoveries 38 — 3 — 1 — 1 — 43 Ending balance $ 2,540 $ 2,052 $ 5,944 $ 535 $ 843 $ 435 $ 444 $ 1,561 $ 14,354 Allowance for Loan Losses Rollforward for the Period (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 Six months ended June 30, 2016 Allowance for loan losses: Beginning balance $ 3,023 $ 2,249 $ 6,178 $ 724 $ 910 $ 394 $ 425 $ 1,096 $ 14,999 Provision (reversal) (440 ) (618 ) 407 107 165 32 (11 ) 358 — Charge-offs (9 ) — — — — — (4 ) — (13 ) Recoveries 63 — 10 — 1 — 27 — 101 Ending balance $ 2,637 $ 1,631 $ 6,595 $ 831 $ 1,076 $ 426 $ 437 $ 1,454 $ 15,087 Six months ended June 30, 2015 Allowance for loan losses: Beginning balance $ 2,837 $ 1,924 $ 6,672 $ 839 $ 859 $ 433 $ 566 $ 969 $ 15,099 Provision (reversal) (392 ) 128 (734 ) 535 (18 ) 2 (113 ) 592 — Charge-offs (3 ) — — (839 ) — — (11 ) — (853 ) Recoveries 98 — 6 — 2 — 2 — 108 Ending balance $ 2,540 $ 2,052 $ 5,944 $ 535 $ 843 $ 435 $ 444 $ 1,561 $ 14,354 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 June 30, 2016 Ending ALLL related to loans collectively evaluated for impairment $ 1,966 $ 1,533 $ 6,123 $ 826 $ 1,064 $ 362 $ 338 $ 1,454 $ 13,666 Ending ALLL related to loans individually evaluated for impairment 671 98 472 5 12 64 99 — 1,421 Ending ALLL related to purchased credit-impaired loans — — — — — — — — — Total $ 2,637 $ 1,631 $ 6,595 $ 831 $ 1,076 $ 426 $ 437 $ 1,454 $ 15,087 Loans outstanding: Collectively evaluated for impairment $ 211,522 $ 233,896 $ 697,750 $ 73,786 $ 110,774 $ 71,774 $ 23,415 $ — $ 1,422,917 Individually evaluated for impairment 3,696 7,169 3,993 3,238 1,395 1,987 1,141 — 22,619 Purchased credit-impaired 39 1,038 1,715 — 71 — — — 2,863 Total $ 215,257 $ 242,103 $ 703,458 $ 77,024 $ 112,240 $ 73,761 $ 24,556 $ — $ 1,448,399 Ratio of allowance for loan losses to total loans 1.23 % 0.67 % 0.94 % 1.08 % 0.96 % 0.58 % 1.78 % NM 1.04 % Allowance for loan losses to non-accrual loans 12,557 % 927 % 393 % NM 136 % NM 694 % NM 554 % 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 December 31, 2015 Ending ALLL related to loans collectively evaluated for impairment $ 2,111 $ 2,179 $ 6,178 $ 723 $ 907 $ 327 $ 309 $ 1,096 $ 13,830 Ending ALLL related to loans individually evaluated for impairment 904 70 — — 3 67 116 — 1,160 Ending ALLL related to purchased credit-impaired loans 8 — — 1 — — — — 9 Total $ 3,023 $ 2,249 $ 6,178 $ 724 $ 910 $ 394 $ 425 $ 1,096 $ 14,999 Loans outstanding: Collectively evaluated for impairment $ 214,695 $ 233,605 $ 711,737 $ 62,256 $ 111,673 $ 71,143 $ 21,388 $ — $ 1,426,497 Individually evaluated for impairment 1 4,582 6,993 2,416 3,238 559 2,011 1,251 — 21,050 Purchased credit-impaired 175 1,711 1,726 1 68 — — — 3,681 Total $ 219,452 $ 242,309 $ 715,879 $ 65,495 $ 112,300 $ 73,154 $ 22,639 $ — $ 1,451,228 Ratio of allowance for loan losses to total loans 1.38 % 0.93 % 0.86 % 1.11 % 0.81 % 0.54 % 1.88 % NM 1.03 % Allowance for loan losses to non-accrual loans 14,395 % NM 325 % 72,400 % 532 % NM 512 % NM 688 % 1 Total excludes $138 thousand PCI loans as of December 31, 2015 that have experienced credit deterioration 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 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table presents the outstanding balances and related carrying values of PCI loans as of June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 PCI Loans (in thousands) Unpaid principal balance Carrying value Unpaid principal balance Carrying value Commercial and industrial $ 50 $ 39 $ 237 $ 175 Commercial real estate 3,104 2,753 4,329 3,437 Construction — — 187 1 Home equity 221 71 224 68 Total purchased credit-impaired loans $ 3,375 $ 2,863 $ 4,977 $ 3,681 |
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 Six months ended (in thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Balance at beginning of period $ 1,742 $ 3,831 $ 2,618 $ 4,027 Removals 1 — — (778 ) (77 ) Accretion (87 ) (120 ) (185 ) (239 ) Reclassifications from nonaccretable difference 2 — — — — Balance at end of period $ 1,655 $ 3,711 $ 1,655 $ 3,711 1 Represents the accretable difference that is relieved when a loan exits the PCI population due to pay-off, full charge-off, or transfer to repossessed assets, etc. 2 Primarily relates to changes in expected credit performance and changes in expected timing of cash flows. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following is a summary of the contractual terms of the subordinated debentures due to the Trusts as of June 30, 2016 : (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 (3.68% as of June 30, 2016), 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 (2.05% as of June 30, 2016), redeemable, in whole or in part, on any interest payment date 4,124 Total $ 8,248 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 Six months ended (in thousands, except per share data) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Cash dividends to common stockholders $ 1,526 $ 1,313 $ 3,044 $ 2,620 Cash dividends per common share $ 0.25 $ 0.22 $ 0.50 $ 0.44 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At June 30, 2016 , the approximate minimum future commitments payable under non-cancelable contracts for leased premises are as follows: (in thousands) 2016 2017 2018 2019 2020 Thereafter Total Operating leases 1 $ 1,773 $ 3,576 $ 3,594 $ 3,567 $ 3,328 $ 5,895 $ 21,733 1 Minimum payments have not been reduced by minimum sublease rentals of $200 thousand due in the future under non-cancelable subleases. |
Derivative Financial Instrume24
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 (in thousands) June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Fair value hedges: Interest rate contracts notional amount $ — $ 4,407 $ 22,527 $ 22,187 Interest rate contracts fair value 1 $ — $ 3 $ 2,721 $ 1,658 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Three months ended (in thousands) June 30, 2016 June 30, 2015 (Decrease) increase in value of designated interest rate swaps recognized in interest income $ (190 ) $ 966 Payment on interest rate swaps recorded in interest income (138 ) (233 ) Increase (decrease) in value of hedged loans recognized in interest income 240 (1,023 ) Decrease in value of yield maintenance agreement recognized against interest income (11 ) (13 ) Net loss on derivatives recognized against interest income 2 $ (99 ) $ (303 ) Six months ended (in thousands) June 30, 2016 June 30, 2015 (Decrease) increase in value of designated interest rate swaps recognized in interest income $ (1,066 ) $ 420 Payment on interest rate swaps recorded in interest income (313 ) (469 ) Increase (decrease) in value of hedged loans recognized in interest income 1,290 (451 ) Decrease in value of yield maintenance agreement recognized against interest income (23 ) (27 ) Net loss on derivatives recognized against interest income 2 $ (112 ) $ (527 ) 1 See Note 3 for valuation methodology. 2 Includes hedge ineffectiveness gain of $39 thousand and loss of $70 thousand for the quarters ended June 30, 2016 and June 30, 2015 , respectively. Ineffectiveness gain of $201 thousand and loss of $58 thousand was recorded in interest income during the six months ended June 30, 2016 and June 30, 2015 , respectively. Changes in value of swaps were included in the assessment of hedge effectiveness. Hedge ineffectiveness is the measure of the extent to which the change in the fair value of the hedging instruments does not exactly offset the change in the fair value of the hedged items from period to period. |
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 Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Assets Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral ( in thousands) Assets 1 Condition of Condition 1 Instruments Received Net Amount June 30, 2016 Derivatives by Counterparty: None $ — $ — $ — $ — $ — $ — December 31, 2015 Derivatives by Counterparty: Counterparty A $ 3 $ — $ 3 $ (3 ) $ — $ — 1 Amounts exclude accrued interest totaling zero and $1 thousand at June 30, 2016 and December 31, 2015 , respectively. |
Offsetting Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts Net Amounts of Gross Amounts Not Offset in Gross Amounts Offset in the Liabilities Presented the Statements of Condition of Recognized Statements of in the Statements Financial Cash Collateral (in thousands) Liabilities 2 Condition of Condition 2 Instruments Pledged Net Amount June 30, 2016 Derivatives by Counterparty: Counterparty A $ 2,721 $ — $ 2,721 $ — $ (2,390 ) $ 331 3 December 31, 2015 Derivatives by Counterparty: Counterparty A $ 1,390 $ — $ 1,390 $ (3 ) $ (1,387 ) $ — Counterparty B 268 — 268 — (268 ) — Total $ 1,658 $ — $ 1,658 $ (3 ) $ (1,655 ) $ — 2 Amounts exclude accrued interest totaling $16 thousand and $27 thousand at June 30, 2016 and December 31, 2015 , respectively. 3 The under-collateralized position was covered subsequent to June 30, 2016. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Weighted average basic shares outstanding (shares) | 6,078 | 5,945 | 6,063 | 5,933 | |
Add: Potentially dilutive common shares related to stock options (shares) | 27 | 41 | 31 | 44 | |
Potential common shares related to unvested restricted stock (shares) | 4 | 3 | 6 | 4 | |
Potential common shares related to warrants (shares) | 0 | 73 | 0 | 74 | |
Weighted average diluted shares outstanding (shares) | 6,109 | 6,062 | 6,100 | 6,055 | |
Net income | $ 4,837 | $ 4,286 | $ 10,483 | $ 8,743 | $ 18,441 |
Basic EPS (usd per share) | $ 0.80 | $ 0.72 | $ 1.73 | $ 1.47 | |
Diluted EPS (usd per share) | $ 0.79 | $ 0.71 | $ 1.72 | $ 1.44 | |
Weighted average anti-dilutive shares not included in the calculation of diluted EPS | 70 | 41 | 60 | 34 |
Fair Value of Assets and Liab26
Fair Value of Assets and Liabilities - Recorded on a Recurring Basis (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | $ 323,361 | $ 417,787 |
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 | security | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of securities | security | 1 | |
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] | ||
Decrease in unrealized gain due to transfers to Level 3 | $ 2 | |
Debentures of government sponsored agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 83,758 | $ 160,892 |
Privately-issued collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 768 | 4,150 |
Obligations of state and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 66,452 | 57,673 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 4,976 | 4,979 |
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) | 3 | |
Derivative financial liabilities (interest rate contracts) | 2,721 | 1,658 |
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 | |
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) | 3 | |
Derivative financial liabilities (interest rate contracts) | 2,721 | 1,658 |
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 | |
Derivative financial liabilities (interest rate contracts) | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 167,407 | 190,093 |
Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | 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 |
Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 166,750 | 188,381 |
Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 657 | 1,712 |
Assets and liabilities at fair value measured on a recurring basis | Debentures of government sponsored agencies | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 83,758 | 160,892 |
Assets and liabilities at fair value measured on a recurring basis | Debentures of government sponsored agencies | 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 |
Assets and liabilities at fair value measured on a recurring basis | Debentures of government sponsored agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 83,758 | 160,892 |
Assets and liabilities at fair value measured on a recurring basis | Debentures of government sponsored agencies | 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 |
Assets and liabilities at fair value measured on a recurring basis | Privately-issued collateralized mortgage obligations | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 768 | 4,150 |
Assets and liabilities at fair value measured on a recurring basis | Privately-issued collateralized mortgage obligations | 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 |
Assets and liabilities at fair value measured on a recurring basis | Privately-issued collateralized mortgage obligations | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 768 | 4,150 |
Assets and liabilities at fair value measured on a recurring basis | Privately-issued collateralized mortgage obligations | 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 |
Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 66,452 | 57,673 |
Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | 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 |
Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 66,452 | 57,673 |
Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | 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 |
Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 4,976 | 4,979 |
Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | 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 |
Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, Fair Value | 4,976 | 4,979 |
Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | 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 |
Fair Value of Assets and Liab27
Fair Value of Assets and Liabilities - Recorded on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 22,619 | $ 21,188 | |
Specific valuation allowance for impaired loan | $ 1,421 | 1,169 | |
Discount rate for selling costs applied to all properties | 6.00% | ||
Changed in estimated value of OREO | $ 13 | $ 40 | |
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 | 0 | 0 | |
Other real estate owned | 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 | 0 | 0 | |
Other real estate owned | 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 | 171 | 0 | |
Other real estate owned | 408 | 421 | |
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 | 171 | 0 | |
Other real estate owned | 408 | $ 421 | |
Consumer Loan [Member] | Consumer loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 171 | ||
Specific valuation allowance for impaired loan | $ 5 |
Fair Value of Assets and Liab28
Fair Value of Assets and Liabilities - Fair Value of Financial Instruments (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)debenture | Dec. 31, 2015USD ($) | |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | $ 60,160 | $ 71,054 |
Subordinated debenture | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Subordinated debentures | $ 4,950 | |
Subordinated Debt [Abstract] | ||
Number of subordinated debentures acquired | debenture | 2 | |
NorCal Community Bancorp Trust I | Subordinated debenture | ||
Subordinated Debt [Abstract] | ||
Basis spread on subordinated debentures | 3.05% | |
NorCal Community Bancorp Trust II | Subordinated debenture | ||
Subordinated Debt [Abstract] | ||
Basis spread on subordinated debentures | 1.40% | |
Carrying Value | Fair Value Hierarchy, Level 1 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | $ 55,438 | 26,343 |
Carrying Value | Fair Value Hierarchy, Level 2 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 58,491 | 69,637 |
Interest receivable | 5,968 | 6,643 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits | 1,705,615 | 1,728,226 |
Federal Home Loan Bank borrowings | 0 | 67,000 |
Interest payable | 137 | 187 |
Carrying Value | Fair Value Hierarchy, Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Loans, net | 1,433,312 | 1,436,229 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Subordinated debentures | 5,493 | 5,395 |
Fair Value | Fair Value Hierarchy, Level 1 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | 55,438 | 26,343 |
Fair Value | Fair Value Hierarchy, Level 2 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 60,160 | 71,054 |
Interest receivable | 5,968 | 6,643 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits | 1,705,937 | 1,728,717 |
Federal Home Loan Bank borrowings | 0 | 67,279 |
Interest payable | 137 | 187 |
Fair Value | Fair Value Hierarchy, Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Loans, net | 1,453,254 | 1,470,380 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Subordinated debentures | $ 5,108 | $ 5,132 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | $ 58,491 | $ 69,637 |
Held to maturity, Fair Value | 60,160 | 71,054 |
Held-to-maturity, Gross Unrealized Gains | 1,678 | 1,459 |
Held-to-maturity, Gross Unrealized Losses | (9) | (42) |
Available-for-sale, Amortized Cost | 318,336 | 417,410 |
Available-for-sale, Fair Value | 323,361 | 417,787 |
Available-for-sale, Gross Unrealized Gains | 5,037 | 1,883 |
Available-for-sale, Gross Unrealized Losses | (12) | (1,506) |
Total investment securities, Amortized Cost | 376,827 | 487,047 |
Total investment securities, Fair Value | 383,521 | 488,841 |
Total investment securities, Gross Unrealized Gains | 6,715 | 3,342 |
Total investment securities, Gross Unrealized Losses | (21) | (1,548) |
Mortgage-backed Securities, Issued by FHLMC and FNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 111,682 | 138,222 |
Available-for-sale, Fair Value | 113,877 | 138,462 |
Available-for-sale, Gross Unrealized Gains | 2,195 | 694 |
Available-for-sale, Gross Unrealized Losses | 0 | (454) |
CMOs issued by FNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 23,061 | 18,266 |
Available-for-sale, Fair Value | 23,387 | 18,219 |
Available-for-sale, Gross Unrealized Gains | 331 | 97 |
Available-for-sale, Gross Unrealized Losses | (5) | (144) |
CMOs issued by FHLMC | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 21,110 | 22,889 |
Available-for-sale, Fair Value | 21,451 | 22,932 |
Available-for-sale, Gross Unrealized Gains | 341 | 82 |
Available-for-sale, Gross Unrealized Losses | 0 | (39) |
CMOs issued by GNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 8,470 | 10,326 |
Available-for-sale, Fair Value | 8,692 | 10,480 |
Available-for-sale, Gross Unrealized Gains | 222 | 169 |
Available-for-sale, Gross Unrealized Losses | 0 | (15) |
Debentures of government sponsored agencies | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 83,566 | 161,690 |
Available-for-sale, Fair Value | 83,758 | 160,892 |
Available-for-sale, Gross Unrealized Gains | 193 | 28 |
Available-for-sale, Gross Unrealized Losses | (1) | (826) |
Privately issued CMOs | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 768 | 3,960 |
Available-for-sale, Fair Value | 768 | 4,150 |
Available-for-sale, Gross Unrealized Gains | 1 | 190 |
Available-for-sale, Gross Unrealized Losses | (1) | 0 |
Obligations of state and political subdivisions | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 64,725 | 57,110 |
Available-for-sale, Fair Value | 66,452 | 57,673 |
Available-for-sale, Gross Unrealized Gains | 1,729 | 580 |
Available-for-sale, Gross Unrealized Losses | (2) | (17) |
Corporate bonds | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 4,954 | 4,947 |
Available-for-sale, Fair Value | 4,976 | 4,979 |
Available-for-sale, Gross Unrealized Gains | 25 | 43 |
Available-for-sale, Gross Unrealized Losses | (3) | (11) |
Obligations of state and political subdivisions | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 39,009 | 42,919 |
Held to maturity, Fair Value | 40,337 | 44,146 |
Held-to-maturity, Gross Unrealized Gains | 1,336 | 1,246 |
Held-to-maturity, Gross Unrealized Losses | (8) | (19) |
Corporate bonds | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 8,529 | 15,072 |
Held to maturity, Fair Value | 8,534 | 15,098 |
Held-to-maturity, Gross Unrealized Gains | 6 | 42 |
Held-to-maturity, Gross Unrealized Losses | (1) | (16) |
MBS pass-through securities issued by FHLMC and FNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held to maturity, Amortized Cost | 10,953 | 11,646 |
Held to maturity, Fair Value | 11,289 | 11,810 |
Held-to-maturity, Gross Unrealized Gains | 336 | 171 |
Held-to-maturity, Gross Unrealized Losses | $ 0 | $ (7) |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Held to Maturity, Amortized Cost, Within one year | $ 19,481 | $ 18,853 |
Held to Maturity, Amortized Cost, After one but within five years | 21,203 | 31,677 |
Held to Maturity, Amortized Cost, After five years through ten years | 5,646 | 8,580 |
Held to Maturity, Amortized Cost, After ten years | 12,161 | 10,527 |
Held to Maturity, Amortized Cost, Total | 58,491 | 69,637 |
Available for Sale Securities, Amortized Cost, Within one year | 2,412 | 12,135 |
Available for Sale, Amortized Cost, After one but within five years | 114,702 | 188,007 |
Available for Sale, Amortized Cost, After five years through ten years | 65,766 | 64,899 |
Available for Sale, Amortized Cost, After ten years | 135,456 | 152,369 |
Available for Sale, Amortized Cost, Total | 318,336 | 417,410 |
Held to Maturity, Fair Value, Within one year | 19,545 | 18,920 |
Held to Maturity, Fair Value, After one but within five years | 21,929 | 32,360 |
Held to Maturity, Fair Value, After five years through ten years | 6,068 | 8,969 |
Held to Maturity, Fair Value, After ten years | 12,618 | 10,805 |
Held to maturity, Fair Value | 60,160 | 71,054 |
Available for Sale, Fair Value, Within one year | 2,416 | 12,176 |
Available for Sale, Fair Value, After one but within five years | 115,207 | 187,326 |
Available for Sale, Fair Value, After five years through ten years | 67,170 | 64,999 |
Available for Sale, Fair Value, After ten years | 138,568 | 153,286 |
Available for Sale, Fair Value, Total | $ 323,361 | $ 417,787 |
Investment Securities - Securit
Investment Securities - Securities Sold and Pledged as Collateral (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Available-for-sale: | |||||
Sales proceeds | $ 13,688 | $ 1,559 | $ 68,673 | $ 1,559 | |
Gross realized gains | 284 | 8 | 458 | 8 | |
Gross realized losses | 0 | $ 0 | (64) | $ 0 | |
State of California | |||||
Available-for-sale: | |||||
Available-for-sale securities pledged as collateral | 96,700 | 96,700 | $ 87,900 | ||
Public Deposits | |||||
Available-for-sale: | |||||
Available-for-sale securities pledged as collateral | 95,900 | 95,900 | 87,100 | ||
Trust Deposits | |||||
Available-for-sale: | |||||
Available-for-sale securities pledged as collateral | 831 | 831 | 840 | ||
Internal checking account | |||||
Available-for-sale: | |||||
Available-for-sale securities pledged as collateral | $ 2,100 | $ 2,100 | $ 1,100 |
Investment Securities - Investm
Investment Securities - Investment Securities in Unrealized Loss Positions (Details) $ in Thousands | Jun. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Number of investment securities other-than-temporarily impaired | security | 0 | |
Number of investment securities in unrealized loss position | security | 10 | 54 |
Held-to-maturity, less than 12 continuous months, Fair value | $ 6,058 | $ 14,152 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | (9) | (41) |
Held-to-maturity, greater than 12 continuous months, Fair value | 0 | 1,999 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | 0 | (1) |
Held-to-maturity, Total Securities in a loss position, Fair value | 6,058 | 16,151 |
Held-to-maturity, Gross Unrealized Losses | (9) | (42) |
Available-for-sale, less than 12 continuous months, Fair value | 14,087 | 221,857 |
Available-for-sale, less than 12 continuous months, Unrealized loss | (7) | (1,273) |
Available-for-sale, greater than 12 continuous months, Fair value | 2,811 | 17,987 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (5) | (233) |
Available-for-sale, Total Securities in a loss position, Fair Value | 16,898 | 239,844 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (12) | (1,506) |
Marketable securities, less than 12 continuous months, Fair value | 20,145 | 236,009 |
Marketable securities, less than 12 continuous months, Unrealized loss | (16) | (1,314) |
Marketable securities, greater than 12 continuous months, Fair value | 2,811 | 19,986 |
Marketable securities, greater than 12 continuous months, Unrealized loss | (5) | (234) |
Marketable securities, Total Securities in a loss position, Fair value | 22,956 | 255,995 |
Marketable securities, Total Securities in a loss position, Unrealized loss | $ (21) | (1,548) |
Number of investment securities in unrealized loss position longer than 12 months | security | 1 | |
Number of investment securities in unrealized loss position less than 12 months | security | 9 | |
Mortgage-backed Securities, Issued by FHLMC and FNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Available-for-sale, less than 12 continuous months, Fair value | $ 0 | 68,809 |
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | (454) |
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 | 0 | 68,809 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | 0 | (454) |
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 | 0 | 9,277 |
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | (80) |
Available-for-sale, greater than 12 continuous months, Fair value | 2,811 | 3,158 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (5) | (64) |
Available-for-sale, Total Securities in a loss position, Fair Value | 2,811 | 12,435 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (5) | (144) |
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 | 0 | 0 |
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 1,989 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | (39) |
Available-for-sale, Total Securities in a loss position, Fair Value | 0 | 1,989 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | 0 | (39) |
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 | 0 | 164 |
Available-for-sale, less than 12 continuous months, Unrealized loss | 0 | 0 |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 2,374 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | (15) |
Available-for-sale, Total Securities in a loss position, Fair Value | 0 | 2,538 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | 0 | (15) |
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 | 9,997 | 136,064 |
Available-for-sale, less than 12 continuous months, Unrealized loss | (1) | (713) |
Available-for-sale, greater than 12 continuous months, Fair value | 0 | 9,887 |
Available-for-sale, greater than 12 continuous months, Unrealized loss | 0 | (113) |
Available-for-sale, Total Securities in a loss position, Fair Value | 9,997 | 145,951 |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (1) | (826) |
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 | 182 | |
Available-for-sale, less than 12 continuous months, Unrealized loss | (1) | |
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 | 182 | |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (1) | |
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 | 1,918 | |
Available-for-sale, less than 12 continuous months, Unrealized loss | (2) | |
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 | 1,918 | |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (2) | |
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 | 1,990 | |
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 | 1,990 | |
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 | 1,058 | 8,297 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | (8) | (19) |
Held-to-maturity, greater than 12 continuous months, Fair value | 0 | 0 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | 0 | 0 |
Held-to-maturity, Total Securities in a loss position, Fair value | 1,058 | 8,297 |
Held-to-maturity, Gross Unrealized Losses | (8) | (19) |
Available-for-sale, less than 12 continuous months, Fair value | 4,557 | |
Available-for-sale, less than 12 continuous months, Unrealized loss | (15) | |
Available-for-sale, greater than 12 continuous months, Fair value | 579 | |
Available-for-sale, greater than 12 continuous months, Unrealized loss | (2) | |
Available-for-sale, Total Securities in a loss position, Fair Value | 5,136 | |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (17) | |
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 | 5,000 | 3,523 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | (1) | (15) |
Held-to-maturity, greater than 12 continuous months, Fair value | 0 | 1,999 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | 0 | (1) |
Held-to-maturity, Total Securities in a loss position, Fair value | 5,000 | 5,522 |
Held-to-maturity, Gross Unrealized Losses | (1) | (16) |
Available-for-sale, less than 12 continuous months, Fair value | 2,986 | |
Available-for-sale, less than 12 continuous months, Unrealized loss | (11) | |
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 | 2,986 | |
Available-for-sale, Total Securities in a loss position, Unrealized loss | (11) | |
MBS pass-through securities issued by FHLMC and FNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Held-to-maturity, less than 12 continuous months, Fair value | 0 | 2,332 |
Held-to-maturity, less than 12 continuous months, Unrealized loss | 0 | (7) |
Held-to-maturity, greater than 12 continuous months, Fair value | 0 | 0 |
Held-to-maturity, greater than 12 continuous months, Unrealized loss | 0 | 0 |
Held-to-maturity, Total Securities in a loss position, Fair value | 0 | 2,332 |
Held-to-maturity, Gross Unrealized Losses | $ 0 | $ (7) |
Investment Securities - Non-Mar
Investment Securities - Non-Marketable Securities (Details) | 6 Months Ended | ||
Jun. 30, 2016USD ($)$ / sharesshares | Jul. 28, 2016 | Dec. 31, 2015USD ($) | |
Schedule of Cost-method Investments [Line Items] | |||
Federal Home Loan Bank stock, par value | $ / shares | $ 100 | ||
Investments in low income housing tax credit funds | $ 2,600,000 | $ 2,700,000 | |
Low income housing tax credits and other tax benefits | 164,000 | ||
Low income housing amortization expense | 127,000 | ||
Unfunded commitments for low income housing tax credit funds | $ 1,500,000 | ||
Visa Inc. | Visa Inc. Class B common stock | |||
Schedule of Cost-method Investments [Line Items] | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.6483 | ||
Visa Inc. Class B common stock | |||
Schedule of Cost-method Investments [Line Items] | |||
Number of shares of securities carried at cost | shares | 16,939 | ||
Carrying value of securities carried at cost | $ 0 | ||
Fair value of Class B common stock | 2,100,000 | 2,200,000 | |
Other assets | |||
Schedule of Cost-method Investments [Line Items] | |||
Federal Home Loan Bank stock | $ 10,200,000 | $ 8,400,000 | |
Subsequent event | |||
Schedule of Cost-method Investments [Line Items] | |||
Federal Home Loan Bank, dividend rate percentage | 9.17% |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses - Loans Outstanding and Aging Analysis (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | $ 2,859,000 | $ 2,224,000 |
Current | 1,445,540,000 | 1,449,004,000 |
Total loans | 1,448,399,000 | 1,451,228,000 |
Purchased Credit Impaired (PCI) loans no longer accreting interest | 1,000 | |
Purchased Credit-impaired (PCI) loans accreting interest | 2,900,000 | 3,700,000 |
Loans past due more than 90 days still accruing | 0 | 0 |
Deferred loan fees | 726,000 | 768,000 |
Unaccreted purchase discounts on non-PCI loans | 2,500,000 | 3,200,000 |
Non-accrual | 2,725,000 | 2,179,000 |
30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 824,000 | 1,382,000 |
60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 1,739,000 | 722,000 |
90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 296,000 | 120,000 |
Commercial loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 65,000 | 57,000 |
Current | 215,192,000 | 219,395,000 |
Total loans | 215,257,000 | 219,452,000 |
Non-accrual | 21,000 | 21,000 |
Commercial loans | Commercial and industrial | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 44,000 | 36,000 |
Commercial loans | Commercial and industrial | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Commercial loans | Commercial and industrial | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 21,000 | 21,000 |
Commercial real estate loans | Commercial real estate, owner-occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 176,000 | 0 |
Current | 241,927,000 | 242,309,000 |
Total loans | 242,103,000 | 242,309,000 |
Non-accrual | 176,000 | 0 |
Commercial real estate loans | Commercial real estate, owner-occupied | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Commercial real estate loans | Commercial real estate, owner-occupied | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Commercial real estate loans | Commercial real estate, owner-occupied | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 176,000 | 0 |
Commercial real estate loans | Commercial real estate, investor | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 1,676,000 | 1,096,000 |
Current | 701,782,000 | 714,783,000 |
Total loans | 703,458,000 | 715,879,000 |
Non-accrual | 1,676,000 | 1,903,000 |
Commercial real estate loans | Commercial real estate, investor | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 1,096,000 |
Commercial real estate loans | Commercial real estate, investor | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 1,676,000 | 0 |
Commercial real estate loans | Commercial real estate, investor | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Commercial real estate loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 1,000 |
Current | 77,024,000 | 65,494,000 |
Total loans | 77,024,000 | 65,495,000 |
Non-accrual | 0 | 1,000 |
Commercial real estate loans | Construction | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 1,000 |
Commercial real estate loans | Construction | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Commercial real estate loans | Construction | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Residential loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 879,000 | 732,000 |
Current | 111,361,000 | 111,568,000 |
Total loans | 112,240,000 | 112,300,000 |
Non-accrual | 789,000 | 171,000 |
Residential loans | Home equity | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 780,000 | 0 |
Residential loans | Home equity | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 633,000 |
Residential loans | Home equity | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 99,000 | 99,000 |
Residential loans | Other residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Current | 73,761,000 | 73,154,000 |
Total loans | 73,761,000 | 73,154,000 |
Non-accrual | 0 | 0 |
Residential loans | Other residential | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Residential loans | Other residential | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Residential loans | Other residential | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 0 |
Consumer loans | Installment and other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 63,000 | 338,000 |
Current | 24,493,000 | 22,301,000 |
Total loans | 24,556,000 | 22,639,000 |
Non-accrual | 63,000 | 83,000 |
Consumer loans | Installment and other consumer | 30-59 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 0 | 249,000 |
Consumer loans | Installment and other consumer | 60-89 days past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | 63,000 | 89,000 |
Consumer loans | Installment and other consumer | 90 days or more past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans past due | $ 0 | $ 0 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses - Credit Quality of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 1,448,399 | $ 1,451,228 |
Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 2,863 | 3,681 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,412,599 | 1,392,597 |
Pass | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 2,863 | 3,260 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 15,401 | 36,300 |
Special Mention | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,399 | 22,331 |
Substandard | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 0 | 421 |
Commercial loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 215,218 | 219,277 |
Total loans | 215,257 | 219,452 |
Commercial loans | Commercial and industrial | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 39 | 175 |
Commercial loans | Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 199,923 | 192,560 |
Commercial loans | Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 11,818 | 22,457 |
Commercial loans | Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 3,477 | 4,260 |
Commercial real estate loans | Commercial real estate, owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 241,065 | 240,598 |
Total loans | 242,103 | 242,309 |
Commercial real estate loans | Commercial real estate, owner-occupied | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 1,038 | 1,711 |
Commercial real estate loans | Commercial real estate, owner-occupied | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 230,799 | 219,060 |
Commercial real estate loans | Commercial real estate, owner-occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 2,101 | 12,371 |
Commercial real estate loans | Commercial real estate, owner-occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 8,165 | 9,167 |
Commercial real estate loans | Commercial real estate, investor | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 701,743 | 714,153 |
Total loans | 703,458 | 715,879 |
Commercial real estate loans | Commercial real estate, investor | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 1,715 | 1,726 |
Commercial real estate loans | Commercial real estate, investor | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 697,897 | 710,042 |
Commercial real estate loans | Commercial real estate, investor | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 362 | 372 |
Commercial real estate loans | Commercial real estate, investor | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 3,484 | 3,739 |
Commercial real estate loans | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 77,024 | 65,494 |
Total loans | 77,024 | 65,495 |
Commercial real estate loans | Construction | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 0 | 1 |
Commercial real estate loans | Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 73,786 | 62,255 |
Commercial real estate loans | Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 0 | 0 |
Commercial real estate loans | Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 3,238 | 3,239 |
Residential loans | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 112,169 | 112,232 |
Total loans | 112,240 | 112,300 |
Residential loans | Home equity | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 71 | 68 |
Residential loans | Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 109,408 | 109,959 |
Residential loans | Home equity | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 1,120 | 1,100 |
Residential loans | Home equity | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans excluding purchased credit-impaired loans | 1,641 | 1,173 |
Residential loans | Other residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 73,761 | 73,154 |
Residential loans | Other residential | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 0 | 0 |
Residential loans | Other residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 73,761 | 73,154 |
Residential loans | Other residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Residential loans | Other residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Installment and other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 24,556 | 22,639 |
Consumer loans | Installment and other consumer | Purchase credit-impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Purchase credit-impaired | 0 | 0 |
Consumer loans | Installment and other consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 24,162 | 22,307 |
Consumer loans | Installment and other consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Installment and other consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 394 | $ 332 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses - Troubled Debt Restructuring by Class (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)loans | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)loans | Jun. 30, 2015USD ($)loans | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans removed from TDR designation | loans | 0 | 3 | ||||
Loans removed from TDR designation, recorded investment | $ 396,000 | |||||
Recorded investment in Troubled Debt Restructurings | $ 19,966,000 | 19,966,000 | $ 19,081,000 | |||
TDR loans accruing interest as of period end | 19,900,000 | 19,900,000 | 19,000,000 | |||
TDR loans acquired | 618,000 | 618,000 | 137,000 | |||
Number of loans transferred to loans held-for-sale | loans | 1 | |||||
Charge-off on loan transferred to held-for-sale | 4,000 | $ 845,000 | 13,000 | $ 853,000 | ||
Gain (loss) on transfer of loans to held-for-sale | $ 0 | |||||
Commercial loans | Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment in Troubled Debt Restructurings | 3,676,000 | 3,676,000 | 4,698,000 | |||
Charge-off on loan transferred to held-for-sale | 0 | 1,000 | 9,000 | 3,000 | ||
Commercial real estate loans | Commercial real estate, owner-occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment in Troubled Debt Restructurings | 6,992,000 | 6,992,000 | 6,993,000 | |||
Charge-off on loan transferred to held-for-sale | 0 | 0 | 0 | 0 | ||
Commercial real estate loans | Commercial real estate, investor | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment in Troubled Debt Restructurings | 2,317,000 | 2,317,000 | 514,000 | |||
Charge-off on loan transferred to held-for-sale | 0 | 0 | 0 | 0 | ||
Commercial real estate loans | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment in Troubled Debt Restructurings | 3,238,000 | 3,238,000 | 3,238,000 | |||
Loans reclassified to held-for-sale | 1,500,000 | |||||
Charge-off on loan transferred to held-for-sale | $ 839,000 | 0 | 839,000 | 0 | 839,000 | |
Residential loans | Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment in Troubled Debt Restructurings | 677,000 | 677,000 | 460,000 | |||
Charge-off on loan transferred to held-for-sale | 0 | 0 | 0 | 0 | ||
Residential loans | Other residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment in Troubled Debt Restructurings | 1,987,000 | 1,987,000 | 2,010,000 | |||
Charge-off on loan transferred to held-for-sale | 0 | 0 | 0 | 0 | ||
Consumer loans | Installment and other consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment in Troubled Debt Restructurings | 1,079,000 | 1,079,000 | $ 1,168,000 | |||
Charge-off on loan transferred to held-for-sale | $ 4,000 | $ 5,000 | $ 4,000 | $ 11,000 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses - Troubled Debt Restructuring Modifications (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)contract | Jun. 30, 2015USD ($)contract | Jun. 30, 2016USD ($)loanscontract | Jun. 30, 2015USD ($)loanscontract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts Modified | contract | 2 | 5 | 3 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 368 | $ 1,004 | $ 1,917 | $ 1,004 |
Post-Modification Outstanding Recorded Investment | 503 | 1,103 | 2,048 | 1,103 |
Post-Modification Outstanding Recorded Investment at period end | $ 503 | $ 1,103 | $ 2,030 | $ 1,103 |
Number of modified TDR loans that defaulted | loans | 0 | 0 | ||
Commercial loans | Commercial and industrial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts Modified | contract | 4 | 4 | ||
Pre-Modification Outstanding Recorded Investment | $ 782 | $ 782 | ||
Post-Modification Outstanding Recorded Investment | 882 | 882 | ||
Post-Modification Outstanding Recorded Investment at period end | $ 882 | $ 882 | ||
Commercial real estate loans | Commercial real estate, investor | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts Modified | contract | 1 | 1 | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 281 | $ 222 | $ 1,830 | $ 222 |
Post-Modification Outstanding Recorded Investment | 281 | 221 | 1,826 | 221 |
Post-Modification Outstanding Recorded Investment at period end | $ 281 | $ 221 | $ 1,808 | $ 221 |
Residential loans | Home equity | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts Modified | contract | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 87 | $ 87 | ||
Post-Modification Outstanding Recorded Investment | 222 | 222 | ||
Post-Modification Outstanding Recorded Investment at period end | $ 222 | $ 222 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses - Impaired Loans and Related Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | $ 7,569 | $ 7,569 | $ 12,928 | ||
With a specific allowance recorded | 15,050 | 15,050 | 8,260 | ||
Total recorded investment in impaired loans | 22,619 | 22,619 | 21,188 | ||
Unpaid principal balance of impaired loans: | |||||
Total unpaid principal balance of impaired loans | 24,628 | 24,628 | 23,409 | ||
Specific valuation | 1,421 | 1,421 | 1,169 | ||
Average recorded investment in impaired loans during the period | 22,470 | $ 24,207 | 22,111 | $ 24,687 | |
Interest income recognized on impaired loans during the period ended | 205 | 195 | 420 | 385 | |
Charged-off portion of impaired loans | 2,000 | 2,000 | 2,100 | ||
Outstanding commitments to extend credit on impaired loans | 944 | 944 | 1,300 | ||
Commercial loans | Commercial and industrial | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 1,059 | 1,059 | 2,198 | ||
With a specific allowance recorded | 2,637 | 2,637 | 2,522 | ||
Total recorded investment in impaired loans | 3,696 | 3,696 | 4,720 | ||
Unpaid principal balance of impaired loans: | |||||
Total unpaid principal balance of impaired loans | 3,697 | 3,697 | 4,763 | ||
Specific valuation | 671 | 671 | 912 | ||
Average recorded investment in impaired loans during the period | 3,771 | 4,173 | 4,027 | 3,946 | |
Interest income recognized on impaired loans during the period ended | 44 | 56 | 98 | 118 | |
Commercial real estate loans | Commercial real estate, owner-occupied | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 0 | 0 | 4,111 | ||
With a specific allowance recorded | 7,169 | 7,169 | 2,882 | ||
Total recorded investment in impaired loans | 7,169 | 7,169 | 6,993 | ||
Unpaid principal balance of impaired loans: | |||||
Total unpaid principal balance of impaired loans | 7,169 | 7,169 | 6,993 | ||
Specific valuation | 98 | 98 | 70 | ||
Average recorded investment in impaired loans during the period | 7,081 | 8,412 | 7,037 | 8,427 | |
Interest income recognized on impaired loans during the period ended | 66 | 78 | 133 | 144 | |
Commercial real estate loans | Commercial real estate, investor | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 1,676 | 1,676 | 2,416 | ||
With a specific allowance recorded | 2,317 | 2,317 | 0 | ||
Total recorded investment in impaired loans | 3,993 | 3,993 | 2,416 | ||
Unpaid principal balance of impaired loans: | |||||
Total unpaid principal balance of impaired loans | 5,984 | 5,984 | 4,408 | ||
Specific valuation | 472 | 472 | 0 | ||
Average recorded investment in impaired loans during the period | 3,917 | 2,947 | 3,523 | 2,931 | |
Interest income recognized on impaired loans during the period ended | 22 | 8 | 38 | 14 | |
Commercial real estate loans | Construction | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 2,688 | 2,688 | 2,687 | ||
With a specific allowance recorded | 550 | 550 | 551 | ||
Total recorded investment in impaired loans | 3,238 | 3,238 | 3,238 | ||
Unpaid principal balance of impaired loans: | |||||
Total unpaid principal balance of impaired loans | 3,238 | 3,238 | 3,424 | ||
Specific valuation | 5 | 5 | 1 | ||
Average recorded investment in impaired loans during the period | 3,238 | 4,475 | 3,238 | 5,078 | |
Interest income recognized on impaired loans during the period ended | 32 | 9 | 70 | 18 | |
Residential loans | Home equity | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 789 | 789 | 171 | ||
With a specific allowance recorded | 606 | 606 | 388 | ||
Total recorded investment in impaired loans | 1,395 | 1,395 | 559 | ||
Unpaid principal balance of impaired loans: | |||||
Total unpaid principal balance of impaired loans | 1,411 | 1,411 | 559 | ||
Specific valuation | 12 | 12 | 3 | ||
Average recorded investment in impaired loans during the period | 1,286 | 610 | 1,077 | 618 | |
Interest income recognized on impaired loans during the period ended | 6 | 4 | 11 | 9 | |
Residential loans | Other residential | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 1,198 | 1,198 | 1,214 | ||
With a specific allowance recorded | 789 | 789 | 797 | ||
Total recorded investment in impaired loans | 1,987 | 1,987 | 2,011 | ||
Unpaid principal balance of impaired loans: | |||||
Total unpaid principal balance of impaired loans | 1,987 | 1,987 | 2,011 | ||
Specific valuation | 64 | 64 | 67 | ||
Average recorded investment in impaired loans during the period | 1,993 | 2,033 | 1,998 | 2,037 | |
Interest income recognized on impaired loans during the period ended | 23 | 23 | 45 | 46 | |
Consumer loans | Installment and other consumer | |||||
Recorded investment in impaired loans: | |||||
With no specific allowance recorded | 159 | 159 | 131 | ||
With a specific allowance recorded | 982 | 982 | 1,120 | ||
Total recorded investment in impaired loans | 1,141 | 1,141 | 1,251 | ||
Unpaid principal balance of impaired loans: | |||||
Total unpaid principal balance of impaired loans | 1,142 | 1,142 | 1,251 | ||
Specific valuation | 99 | 99 | $ 116 | ||
Average recorded investment in impaired loans during the period | 1,184 | 1,557 | 1,211 | 1,650 | |
Interest income recognized on impaired loans during the period ended | $ 12 | $ 17 | $ 25 | $ 36 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | $ 15,028 | $ 15,156 | $ 14,999 | $ 15,099 | ||
Provision for loan losses | 0 | 0 | 0 | 0 | ||
Charge-offs | (4) | (845) | (13) | (853) | ||
Recoveries | 63 | 43 | 101 | 108 | ||
Ending balance | $ 14,354 | 15,087 | 14,354 | 15,087 | 14,354 | |
Ending ALLL related to loans collectively evaluated for impairment | 13,666 | 13,666 | $ 13,830 | |||
Ending ALLL related to loans individually evaluated for impairment | 1,421 | 1,421 | 1,160 | |||
Ending ALLL related to purchased credit-impaired loans | 15,087 | 15,087 | 14,999 | |||
Collectively evaluated for impairment | 1,422,917 | 1,422,917 | 1,426,497 | |||
Individually evaluated for impairment | 22,619 | 22,619 | 21,050 | |||
Total loans | $ 1,448,399 | $ 1,448,399 | $ 1,451,228 | |||
Ratio of allowance for loan losses to total loans | 1.04% | 1.04% | 1.03% | |||
Allowance for loan losses to non-accrual loans | 554.00% | 554.00% | 688.00% | |||
PCI loans impaired post-acquisition | $ 138 | |||||
Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | $ 0 | $ 0 | 9 | |||
Purchase credit-impaired | 2,863 | 2,863 | 3,681 | |||
Commercial loans | Commercial and industrial | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 2,799 | 2,620 | 3,023 | 2,837 | ||
Provision for loan losses | (192) | (117) | (440) | (392) | ||
Charge-offs | 0 | (1) | (9) | (3) | ||
Recoveries | 30 | 38 | 63 | 98 | ||
Ending balance | 2,540 | 2,637 | 2,540 | 2,637 | 2,540 | |
Ending ALLL related to loans collectively evaluated for impairment | 1,966 | 1,966 | 2,111 | |||
Ending ALLL related to loans individually evaluated for impairment | 671 | 671 | 904 | |||
Ending ALLL related to purchased credit-impaired loans | 2,637 | 2,637 | 3,023 | |||
Collectively evaluated for impairment | 211,522 | 211,522 | 214,695 | |||
Individually evaluated for impairment | 3,696 | 3,696 | 4,582 | |||
Total loans | $ 215,257 | $ 215,257 | $ 219,452 | |||
Ratio of allowance for loan losses to total loans | 1.23% | 1.23% | 1.38% | |||
Allowance for loan losses to non-accrual loans | 12557.00% | 12557.00% | 14395.00% | |||
Commercial loans | Commercial and industrial | Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | $ 0 | $ 0 | $ 8 | |||
Purchase credit-impaired | 39 | 39 | 175 | |||
Commercial real estate loans | Commercial real estate, owner-occupied | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,619 | 2,094 | 2,249 | 1,924 | ||
Provision for loan losses | 12 | (42) | (618) | 128 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 2,052 | 1,631 | 2,052 | 1,631 | 2,052 | |
Ending ALLL related to loans collectively evaluated for impairment | 1,533 | 1,533 | 2,179 | |||
Ending ALLL related to loans individually evaluated for impairment | 98 | 98 | 70 | |||
Ending ALLL related to purchased credit-impaired loans | 1,631 | 1,631 | 2,249 | |||
Collectively evaluated for impairment | 233,896 | 233,896 | 233,605 | |||
Individually evaluated for impairment | 7,169 | 7,169 | 6,993 | |||
Total loans | $ 242,103 | $ 242,103 | $ 242,309 | |||
Ratio of allowance for loan losses to total loans | 0.67% | 0.67% | 0.93% | |||
Allowance for loan losses to non-accrual loans | 927.00% | 927.00% | ||||
Commercial real estate loans | Commercial real estate, owner-occupied | Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | $ 0 | $ 0 | $ 0 | |||
Purchase credit-impaired | 1,038 | 1,038 | 1,711 | |||
Commercial real estate loans | Commercial real estate, investor | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 6,571 | 6,292 | 6,178 | 6,672 | ||
Provision for loan losses | 19 | (351) | 407 | (734) | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 5 | 3 | 10 | 6 | ||
Ending balance | 5,944 | 6,595 | 5,944 | 6,595 | 5,944 | |
Ending ALLL related to loans collectively evaluated for impairment | 6,123 | 6,123 | 6,178 | |||
Ending ALLL related to loans individually evaluated for impairment | 472 | 472 | 0 | |||
Ending ALLL related to purchased credit-impaired loans | 6,595 | 6,595 | 6,178 | |||
Collectively evaluated for impairment | 697,750 | 697,750 | 711,737 | |||
Individually evaluated for impairment | 3,993 | 3,993 | 2,416 | |||
Total loans | $ 703,458 | $ 703,458 | $ 715,879 | |||
Ratio of allowance for loan losses to total loans | 0.94% | 0.94% | 0.86% | |||
Allowance for loan losses to non-accrual loans | 393.00% | 393.00% | 325.00% | |||
Commercial real estate loans | Commercial real estate, investor | Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | $ 0 | $ 0 | $ 0 | |||
Purchase credit-impaired | 1,715 | 1,715 | 1,726 | |||
Commercial real estate loans | Construction | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 822 | 778 | 724 | 839 | ||
Provision for loan losses | 9 | 596 | 107 | 535 | ||
Charge-offs | (839) | 0 | (839) | 0 | (839) | |
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 535 | 831 | 535 | 831 | 535 | |
Ending ALLL related to loans collectively evaluated for impairment | 826 | 826 | 723 | |||
Ending ALLL related to loans individually evaluated for impairment | 5 | 5 | 0 | |||
Ending ALLL related to purchased credit-impaired loans | 831 | 831 | 724 | |||
Collectively evaluated for impairment | 73,786 | 73,786 | 62,256 | |||
Individually evaluated for impairment | 3,238 | 3,238 | 3,238 | |||
Total loans | $ 77,024 | $ 77,024 | $ 65,495 | |||
Ratio of allowance for loan losses to total loans | 1.08% | 1.08% | 1.11% | |||
Allowance for loan losses to non-accrual loans | 72400.00% | |||||
Commercial real estate loans | Construction | Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | $ 0 | $ 0 | $ 1 | |||
Purchase credit-impaired | 0 | 0 | 1 | |||
Residential loans | Home equity | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,044 | 923 | 910 | 859 | ||
Provision for loan losses | 31 | (81) | 165 | (18) | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 1 | 1 | 1 | 2 | ||
Ending balance | 843 | 1,076 | 843 | 1,076 | 843 | |
Ending ALLL related to loans collectively evaluated for impairment | 1,064 | 1,064 | 907 | |||
Ending ALLL related to loans individually evaluated for impairment | 12 | 12 | 3 | |||
Ending ALLL related to purchased credit-impaired loans | 1,076 | 1,076 | 910 | |||
Collectively evaluated for impairment | 110,774 | 110,774 | 111,673 | |||
Individually evaluated for impairment | 1,395 | 1,395 | 559 | |||
Total loans | $ 112,240 | $ 112,240 | $ 112,300 | |||
Ratio of allowance for loan losses to total loans | 0.96% | 0.96% | 0.81% | |||
Allowance for loan losses to non-accrual loans | 136.00% | 136.00% | 532.00% | |||
Residential loans | Home equity | Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | $ 0 | $ 0 | $ 0 | |||
Purchase credit-impaired | 71 | 71 | 68 | |||
Residential loans | Other residential | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 430 | 430 | 394 | 433 | ||
Provision for loan losses | (4) | 5 | 32 | 2 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 435 | 426 | 435 | 426 | 435 | |
Ending ALLL related to loans collectively evaluated for impairment | 362 | 362 | 327 | |||
Ending ALLL related to loans individually evaluated for impairment | 64 | 64 | 67 | |||
Ending ALLL related to purchased credit-impaired loans | 426 | 426 | 394 | |||
Collectively evaluated for impairment | 71,774 | 71,774 | 71,143 | |||
Individually evaluated for impairment | 1,987 | 1,987 | 2,011 | |||
Total loans | $ 73,761 | $ 73,761 | $ 73,154 | |||
Ratio of allowance for loan losses to total loans | 0.58% | 0.58% | 0.54% | |||
Residential loans | Other residential | Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | $ 0 | $ 0 | $ 0 | |||
Purchase credit-impaired | 0 | 0 | 0 | |||
Consumer loans | Installment and other consumer | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 434 | 462 | 425 | 566 | ||
Provision for loan losses | (20) | (14) | (11) | (113) | ||
Charge-offs | (4) | (5) | (4) | (11) | ||
Recoveries | 27 | 1 | 27 | 2 | ||
Ending balance | 444 | 437 | 444 | 437 | 444 | |
Ending ALLL related to loans collectively evaluated for impairment | 338 | 338 | 309 | |||
Ending ALLL related to loans individually evaluated for impairment | 99 | 99 | 116 | |||
Ending ALLL related to purchased credit-impaired loans | 437 | 437 | 425 | |||
Collectively evaluated for impairment | 23,415 | 23,415 | 21,388 | |||
Individually evaluated for impairment | 1,141 | 1,141 | 1,251 | |||
Total loans | $ 24,556 | $ 24,556 | $ 22,639 | |||
Ratio of allowance for loan losses to total loans | 1.78% | 1.78% | 1.88% | |||
Allowance for loan losses to non-accrual loans | 694.00% | 694.00% | 512.00% | |||
Consumer loans | Installment and other consumer | Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | $ 0 | $ 0 | $ 0 | |||
Purchase credit-impaired | 0 | 0 | 0 | |||
Unallocated | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,309 | 1,557 | 1,096 | 969 | ||
Provision for loan losses | 145 | 4 | 358 | 592 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | $ 1,561 | 1,454 | $ 1,561 | 1,454 | $ 1,561 | |
Ending ALLL related to loans collectively evaluated for impairment | 1,454 | 1,454 | 1,096 | |||
Ending ALLL related to loans individually evaluated for impairment | 0 | 0 | 0 | |||
Ending ALLL related to purchased credit-impaired loans | 1,454 | 1,454 | 1,096 | |||
Collectively evaluated for impairment | 0 | 0 | 0 | |||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Total loans | 0 | 0 | 0 | |||
Unallocated | Purchase credit-impaired | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending ALLL related to purchased credit-impaired loans | 0 | 0 | 0 | |||
Purchase credit-impaired | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses - Purchased Credit-Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
PCI Loans, Carrying Value [Abstract] | |||||
Unpaid principal balance | $ 3,375 | $ 3,375 | $ 4,977 | ||
Carrying value | 2,863 | 2,863 | 3,681 | ||
Accretable Yield [Roll Forward] | |||||
Balance at beginning of period | 1,742 | $ 3,831 | 2,618 | $ 4,027 | |
Removals | 0 | 0 | (778) | (77) | |
Accretion | (87) | (120) | (185) | (239) | |
Reclassifications from nonaccretable difference | 0 | 0 | 0 | 0 | |
Balance at end of period | 1,655 | $ 3,711 | 1,655 | $ 3,711 | |
Commercial loans | Commercial and industrial | |||||
PCI Loans, Carrying Value [Abstract] | |||||
Unpaid principal balance | 50 | 50 | 237 | ||
Carrying value | 39 | 39 | 175 | ||
Commercial real estate loans | |||||
PCI Loans, Carrying Value [Abstract] | |||||
Unpaid principal balance | 3,104 | 3,104 | 4,329 | ||
Carrying value | 2,753 | 2,753 | 3,437 | ||
Commercial real estate loans | Construction | |||||
PCI Loans, Carrying Value [Abstract] | |||||
Unpaid principal balance | 0 | 0 | 187 | ||
Carrying value | 0 | 0 | 1 | ||
Residential loans | Home equity | |||||
PCI Loans, Carrying Value [Abstract] | |||||
Unpaid principal balance | 221 | 221 | 224 | ||
Carrying value | $ 71 | $ 71 | $ 68 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses - Pledged Loans (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Residential loans pledged for FRB borrowings | $ 861.9 | $ 833.8 |
Other residential | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Pledged residential loan portfolio to secure borrowing with FRB | $ 48.4 | $ 45.2 |
Borrowings - Lines of Credit (D
Borrowings - Lines of Credit (Details) - Line of credit - USD ($) | Jun. 15, 2016 | Feb. 05, 2008 | Jun. 30, 2016 | Dec. 31, 2015 |
Federal Funds Purchased | ||||
Line of Credit Facility [Line Items] | ||||
Amount of borrowings outstanding | $ 0 | $ 0 | ||
Federal Home Loan Bank Borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Lines of credit | 485,900,000 | 470,600,000 | ||
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% | |||
Amount of debt repaid early | $ 15,000,000 | |||
Prepayment fee | $ 312,000 | |||
Remaining available line of credit from FHLB | 485,900,000 | 403,400,000 | ||
Federal Home Loan Bank Overnight Borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Amount of borrowings outstanding | 0 | 52,000,000 | ||
Federal Reserve Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Lines of credit | 40,100,000 | 37,800,000 | ||
Amount of borrowings outstanding | 0 | 0 | ||
Unsecured Debt | Federal Funds Purchased | ||||
Line of Credit Facility [Line Items] | ||||
Lines of credit | $ 92,000,000 | $ 92,000,000 |
Borrowings - Subordinated Debt
Borrowings - Subordinated Debt (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)debenture | Jun. 30, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Accretion of discount on subordinated debentures | $ 98 | $ 106 |
Amount guaranteed, on subordinated basis, distributions and other payments on trust preferred securities | $ 8,000 | |
Subordinated debenture | ||
Debt Instrument [Line Items] | ||
Number of subordinated debentures acquired | debenture | 2 | |
Subordinated debentures | $ 4,950 | |
Contractual value of subordinated debt | 8,248 | |
Accretion of discount on subordinated debentures | $ 98 | $ 106 |
Debenture distribution deferral period (up to number of years) | 5 years | |
Subordinated debenture | NorCal Community Bancorp Trust I | ||
Debt Instrument [Line Items] | ||
Contractual value of subordinated debt | $ 4,124 | |
Effective interest rate | 3.68% | |
Basis spread on subordinated debentures | 3.05% | |
Subordinated debenture | NorCal Community Bancorp Trust II | ||
Debt Instrument [Line Items] | ||
Contractual value of subordinated debt | $ 4,124 | |
Effective interest rate | 2.05% | |
Basis spread on subordinated debentures | 1.40% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | Jul. 22, 2016$ / shares | Sep. 30, 2015shares | Nov. 30, 2011investor | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / shares | Dec. 31, 2015USD ($) |
Class of Stock [Line Items] | ||||||||
Number of institutional investors that purchased warrant | investor | 2 | |||||||
Cash dividends to common stockholders | $ | $ 1,526 | $ 1,313 | $ 3,044 | $ 2,620 | $ 5,390 | |||
Cash dividends paid per common share (usd per share) | $ 0.25 | $ 0.22 | $ 0.50 | $ 0.44 | ||||
Performance-based stock awards | ||||||||
Class of Stock [Line Items] | ||||||||
Vesting period of performance-based stock awards | 3 years | |||||||
Performance-based stock awards | Minimum | ||||||||
Class of Stock [Line Items] | ||||||||
Vesting percentage of performance-based awards | 0.00% | |||||||
Performance-based stock awards | Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Vesting percentage of performance-based awards | 200.00% | |||||||
Common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of common stock shares authorized to be purchased by warrant (in shares) | shares | 157,711 | 157,711 | ||||||
Exercise price of warrant to purchase common stock (usd per share) | $ 26.63 | $ 26.63 | ||||||
Net issuance of shares of common stock from cashless exercise | shares | 70,591 | |||||||
U.S. Treasury Capital Purchase Program (TCPP) | Common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of common stock shares authorized to be purchased by warrant (in shares) | shares | 154,242 | 154,242 | ||||||
Exercise price of warrant to purchase common stock (usd per share) | $ 27.23 | $ 27.23 | ||||||
Subsequent event | ||||||||
Class of Stock [Line Items] | ||||||||
Dividends declared per common share (usd per share) | $ 0.25 |
Commitments and Contingencies45
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Operating Leases | ||||
2,016 | $ 1,773 | |||
2,017 | 3,576 | |||
2,018 | 3,594 | |||
2,019 | 3,567 | |||
2,020 | 3,328 | |||
Thereafter | 5,895 | |||
Total | 21,733 | |||
Minimum payments due on minimum sublease rentals under non-cancelable subleases | 200 | |||
Rent expense | 1,900 | $ 2,200 | ||
Visa Inc. | ||||
Litigation Matters | ||||
Balance of escrow account for legal settlements | $ 1,000,000 | |||
Visa Inc. | Pending due to reversal | ||||
Litigation Matters | ||||
Class settlement agreement amount, reversed by appellate court | 4,000,000 | |||
Loan commitments and standby letters of credit, unused | ||||
Loss Contingencies [Line Items] | ||||
Loan commitments and standby letters of credit, off-balance sheet | 418,200 | $ 376,600 | ||
Loan commitments and standby letters of credit, unused | Interest payable and other liabilities | ||||
Loss Contingencies [Line Items] | ||||
Allowance for off balance sheet commitments | 899 | $ 749 | ||
Commercial lines of credit | ||||
Loss Contingencies [Line Items] | ||||
Loan commitments and standby letters of credit, off-balance sheet | 213,300 | |||
Revolving home equity lines | ||||
Loss Contingencies [Line Items] | ||||
Loan commitments and standby letters of credit, off-balance sheet | 143,700 | |||
Undisbursed construction loans | ||||
Loss Contingencies [Line Items] | ||||
Loan commitments and standby letters of credit, off-balance sheet | 46,800 | |||
Standby letters of credit | ||||
Loss Contingencies [Line Items] | ||||
Loan commitments and standby letters of credit, off-balance sheet | 3,600 | |||
Personal and other lines of credit | ||||
Loss Contingencies [Line Items] | ||||
Loan commitments and standby letters of credit, off-balance sheet | $ 10,800 |
Derivative Financial Instrume46
Derivative Financial Instruments and Hedging Activities - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2016derivative | Jun. 30, 2016USD ($)derivative | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)derivative | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Derivatives, Fair Value [Line Items] | ||||||
Number of derivative instruments terminated | derivative | 1 | |||||
Fair value hedge | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Net hedge ineffectiveness, derivatives | $ 39 | $ 70 | $ 201 | $ 58 | ||
Fair value hedge | Interest income | ||||||
Derivatives, Fair Value [Line Items] | ||||||
(Decrease) increase in value of designated interest rate swaps recognized in interest income | (190) | 966 | (1,066) | 420 | ||
Payment on interest rate swaps recorded in interest income | (138) | (233) | (313) | (469) | ||
Increase (decrease) in value of hedged loans recognized in interest income | 240 | (1,023) | 1,290 | (451) | ||
Decrease in value of yield maintenance agreement recognized against interest income | (11) | (13) | (23) | (27) | ||
Net loss on derivatives recognized against interest income | (99) | $ (303) | (112) | $ (527) | ||
Designated as hedging instrument | Fair value hedge | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Accrued interest on swaps | $ 16 | $ 16 | $ 28 | |||
Interest rate swap | Designated as hedging instrument | Fair value hedge | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Number of derivative instruments | derivative | 6 | 6 | ||||
Interest rate swap | Designated as hedging instrument | Fair value hedge | Other assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contracts notional amount, Asset derivatives | $ 0 | $ 0 | 4,407 | |||
Interest rate swap | Designated as hedging instrument | Fair value hedge | Other liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contracts notional amount, Liability derivatives | 22,527 | 22,527 | 22,187 | |||
Interest rate contract | Designated as hedging instrument | Fair value hedge | Other assets | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contracts fair value, Asset derivatives | 0 | 0 | 3 | |||
Interest rate contract | Designated as hedging instrument | Fair value hedge | Other liabilities | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Interest rate contracts fair value, Liability derivatives | $ 2,721 | $ 2,721 | $ 1,658 |
Derivative Financial Instrume47
Derivative Financial Instruments and Hedging Activities - Offsetting of Assets (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 0 | |
Gross Amounts Offset in the Statements of Condition | 0 | |
Net Amounts of Assets Presented in the Statements of Condition | 0 | |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | |
Net Amount | 0 | |
Interest rate swap | Other assets | ||
Offsetting Assets [Line Items] | ||
Accrued interest on derivative asset interest rate swaps | $ 0 | $ 1,000 |
Counterparty A | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 3,000 | |
Gross Amounts Offset in the Statements of Condition | 0 | |
Net Amounts of Assets Presented in the Statements of Condition | 3,000 | |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | (3,000) | |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | |
Net Amount | $ 0 |
Derivative Financial Instrume48
Derivative Financial Instruments and Hedging Activities - Offsetting of Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 1,658 | |
Gross Amounts Offset in the Statements of Condition | 0 | |
Net Amounts of Liabilities Presented in the Statements of Condition | 1,658 | |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | (3) | |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | (1,655) | |
Net Amount | 0 | |
Interest rate swap | Other liabilities | ||
Offsetting Liabilities [Line Items] | ||
Accrued interest on derivative liability interest swaps | $ 16 | 27 |
Counterparty A | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 2,721 | 1,390 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | 2,721 | 1,390 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | (3) |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | (2,390) | (1,387) |
Net Amount | $ 331 | 0 |
Counterparty B | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 268 | |
Gross Amounts Offset in the Statements of Condition | 0 | |
Net Amounts of Liabilities Presented in the Statements of Condition | 268 | |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged | (268) | |
Net Amount | $ 0 |