Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Oct. 14, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FNBC | |
Entity Registrant Name | First NBC Bank Holding Co | |
Entity Central Index Key | 1,496,631 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 19,230,911 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Assets | |||
Noninterest-bearing | $ 34,573 | $ 50,270 | |
Interest-bearing | 108,023 | 293,109 | |
Federal funds sold | 3,415 | 5,675 | |
Cash and cash equivalents | 146,011 | 349,054 | |
Investment in short-term receivables | 0 | 25,604 | |
Investment securities available for sale, at fair value | 301,279 | 285,826 | |
Investment securities held to maturity (fair value of $85,442 and $82,800, respectively) | 79,598 | 82,074 | |
Mortgage loans held for sale | 3,198 | 2,597 | |
Loans, net of allowance for loan losses of $76,964 and $78,478, respectively | 3,703,021 | 3,380,115 | |
Bank premises and equipment, net | 60,054 | 67,155 | |
Accrued interest receivable | 14,404 | 14,003 | |
Goodwill and other intangible assets | 18,032 | 18,251 | |
Investment in real estate properties | 77,976 | 80,666 | |
Investment in tax credit entities, net | 92,880 | 108,586 | |
Cash surrender value of bank-owned life insurance | 49,371 | 48,691 | |
Other real estate | 7,709 | 5,232 | |
Deferred tax asset | 252,691 | 205,287 | |
Other assets | 45,193 | 32,684 | |
Total assets | 4,851,417 | 4,705,825 | |
Deposits: | |||
Noninterest-bearing | 381,553 | 368,421 | |
Interest-bearing | 3,550,471 | 3,475,421 | |
Total deposits | 3,932,024 | 3,843,842 | |
Short-term borrowings | 7,022 | 8,000 | |
Repurchase agreements | 85,757 | 79,251 | |
Subordinated debentures | 60,000 | 60,000 | |
Long-term borrowings | 295,130 | 279,042 | |
Accrued interest payable | 9,036 | 8,728 | |
Other liabilities | 57,332 | 46,211 | |
Total liabilities | 4,446,301 | 4,325,074 | |
Shareholders’ equity: | |||
Preferred stock Series D – no par value; 37,935 shares authorized, issued and outstanding at June 30, 2016 and December 31, 2015 | 37,935 | 37,935 | |
Common stock- par value $1 per share; 100,000,000 shares authorized; 19,231,427 shares issued and outstanding at June 30, 2016 and 19,077,572 shares issued and outstanding at December 31, 2015 | 19,231 | 19,078 | |
Additional paid-in capital | 244,899 | 242,979 | |
Accumulated earnings | 128,220 | 102,142 | |
Accumulated other comprehensive loss, net | (25,171) | (21,385) | |
Total shareholders’ equity | 405,114 | 380,749 | |
Noncontrolling interest | 2 | 2 | |
Total equity | 405,116 | 380,751 | [1] |
Total liabilities and equity | $ 4,851,417 | $ 4,705,825 | |
[1] | Balances as of December 31, 2014 and December 31, 2015 are audited. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 85,442 | $ 82,800 |
Allowance for loan losses | $ 76,964 | $ 78,478 |
Preferred stock, share authorized | 37,935 | 37,935 |
Preferred stock, share issued | 37,935 | 37,935 |
Preferred stock, share outstanding | 37,935 | 37,935 |
Common stock, par value per share (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,231,427 | 19,077,572 |
Common stock, shares outstanding | 19,231,427 | 19,077,572 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Loans, including fees | $ 46,185 | $ 35,947 | $ 89,511 | $ 70,441 |
Investment securities | 1,992 | 2,215 | 3,904 | 4,318 |
Investment in short-term receivables | 0 | 1,514 | 41 | 3,204 |
Short-term investments | 269 | 94 | 579 | 158 |
Total interest income | 48,446 | 39,770 | 94,035 | 78,121 |
Interest expense: | ||||
Deposits | 12,727 | 10,662 | 25,281 | 20,906 |
Borrowings and securities sold under repurchase agreements | 2,241 | 1,740 | 4,310 | 2,980 |
Total interest expense | 14,968 | 12,402 | 29,591 | 23,886 |
Net interest income | 33,478 | 27,368 | 64,444 | 54,235 |
(Recovery of) provision for loan losses | (6,365) | 5,600 | 8,383 | 8,600 |
Net interest income after provision for loan losses | 39,843 | 21,768 | 56,061 | 45,635 |
Noninterest income: | ||||
Service charges on deposit accounts | 477 | 585 | 1,074 | 1,144 |
Investment securities loss, net | 0 | 0 | 0 | (50) |
Gain (loss) on assets sold, net | 468 | (32) | 1,051 | 11 |
Gain on sale of loans, net | 31 | 101 | 34 | 116 |
Cash surrender value income on bank-owned life insurance | 338 | 353 | 680 | 705 |
Sale of state tax credits earned | 0 | 668 | 0 | 1,187 |
Community Development Entity fees earned | 149 | 133 | 184 | 256 |
ATM fee income | 603 | 523 | 1,174 | 1,024 |
Rental property income | 914 | 875 | 1,811 | 1,745 |
Other | 638 | 412 | 2,333 | 832 |
Total non-interest income | 3,618 | 3,618 | 8,341 | 6,970 |
Noninterest expense: | ||||
Salaries and employee benefits | 9,896 | 7,689 | 17,526 | 14,596 |
Occupancy and equipment expenses | 3,844 | 2,996 | 7,333 | 5,910 |
Professional fees | 3,914 | 1,701 | 7,431 | 3,842 |
Taxes, licenses and FDIC assessments | 3,760 | 1,693 | 5,497 | 2,932 |
Impairment of investment in tax credit entities | 14,716 | 11,661 | 29,431 | 25,008 |
Write-down of foreclosed assets | 189 | 42 | 232 | 100 |
Data processing | 1,848 | 1,581 | 3,710 | 3,003 |
Advertising and marketing | 1,002 | 673 | 1,941 | 1,691 |
Rental property expenses | 1,422 | 965 | 2,938 | 1,931 |
Other | 2,963 | 2,276 | 5,535 | 4,215 |
Total non-interest expense | 43,554 | 31,277 | 81,574 | 63,228 |
Income (loss) before income taxes | (93) | (5,891) | (17,172) | (10,623) |
Income tax benefit | (4,050) | (18,596) | (43,920) | (33,280) |
Net income attributable to Company | 3,957 | 12,705 | 26,748 | 22,657 |
Less preferred stock dividends | (575) | (95) | (670) | (190) |
Less earnings allocated to participating securities | 0 | (222) | 0 | (413) |
Income available to common shareholders | $ 3,382 | $ 12,388 | $ 26,078 | $ 22,054 |
Earnings per common share – basic (in usd per share) | $ 0.18 | $ 0.67 | $ 1.37 | $ 1.19 |
Earnings per common share - diluted (in usd per share) | $ 0.18 | $ 0.65 | $ 1.34 | $ 1.15 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,957 | $ 12,705 | $ 26,748 | $ 22,657 |
Fair value of derivative instruments designated as cash flow hedges: | ||||
Change in fair value of derivative instruments designated as cash flow hedges during the period, before tax | (5,480) | 6,463 | (13,626) | 2,690 |
Less: reclassification adjustment for net losses included in net income from terminated cash flow hedges | 193 | 273 | 394 | 539 |
Unrealized gains (losses) on cash flow hedges, before tax | (5,287) | 6,736 | (13,232) | 3,229 |
Unrealized gains (losses) on investment securities: | ||||
Change in unrealized gains (losses) on investment securities arising during the period | 1,781 | (3,311) | 7,102 | 472 |
Reclassification adjustment for losses included in net income | 0 | 0 | 0 | 0 |
Amortization of unrealized net gain on securities transferred from available for sale to held to maturity | 180 | 160 | 303 | 288 |
Unrealized gains (losses) on investment securities, before tax | 1,961 | (3,151) | 7,405 | 760 |
Other comprehensive income (loss), before taxes | (3,326) | 3,585 | (5,827) | 3,989 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (1,164) | 1,256 | (2,041) | 1,397 |
Other comprehensive income (loss), net of tax | (2,162) | 2,329 | (3,786) | 2,592 |
Total comprehensive income | 1,795 | 15,034 | 22,962 | 25,249 |
Comprehensive income attributable to preferred shareholders | (575) | (95) | (670) | (190) |
Comprehensive income attributable to participating securities | 0 | (222) | 0 | (413) |
Comprehensive income available to common shareholders | $ 1,220 | $ 14,717 | $ 22,292 | $ 24,646 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Earnings | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | Non-Controlling Interest | Preferred Stock Series C | Preferred Stock Series D | |||
Beginning Balance, Preferred Stock at Dec. 31, 2014 | [1] | $ 4,471 | $ 37,935 | |||||||||
Beginning Balance at Dec. 31, 2014 | [1] | $ 408,533 | $ 18,576 | $ 239,528 | $ 127,758 | $ (19,737) | $ 408,531 | $ 2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 22,657 | 22,657 | 22,657 | |||||||||
Other comprehensive income | 2,592 | 2,592 | 2,592 | |||||||||
Share-based compensation | 298 | 298 | 298 | |||||||||
Restricted stock awards compensation | (1,557) | (1,557) | (1,557) | |||||||||
ESOP compensation expense | 130 | 130 | 130 | |||||||||
Stock option and director plans | 414 | 26 | 388 | 414 | ||||||||
Restricted stock awards, net | 1,818 | 55 | 1,763 | 1,818 | ||||||||
Net tax benefit related to stock option plans | 121 | 121 | 121 | |||||||||
Purchase of common shares by ESOP | (3,244) | (3,244) | (3,244) | |||||||||
Allocation of ESOP shares | (96) | (96) | (96) | |||||||||
Preferred stock conversion | 365 | 4,106 | (4,471) | |||||||||
Preferred stock dividends | (190) | (190) | (190) | |||||||||
Ending Balance, Preferred Stock at Jun. 30, 2015 | 0 | 37,935 | ||||||||||
Ending Balance at Jun. 30, 2015 | 431,476 | 19,022 | 241,437 | 150,225 | (17,145) | 431,474 | 2 | |||||
Beginning Balance, Preferred Stock at Dec. 31, 2015 | 37,935 | 0 | [1] | 37,935 | [1] | |||||||
Beginning Balance at Dec. 31, 2015 | [1] | 380,751 | 19,078 | 242,979 | 102,142 | (21,385) | 380,749 | 2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 26,748 | 26,748 | 26,748 | |||||||||
Other comprehensive income | (3,786) | (3,786) | (3,786) | |||||||||
Share-based compensation | 282 | 282 | 282 | |||||||||
Restricted stock awards compensation | 550 | 550 | 550 | |||||||||
ESOP compensation expense | 162 | 162 | 162 | |||||||||
Stock option and director plans | 156 | 63 | 93 | 156 | ||||||||
Warrants | 804 | 95 | 709 | 804 | ||||||||
Restricted stock awards, net | (189) | (5) | (184) | (189) | ||||||||
Net tax benefit related to stock option plans | 303 | 303 | 303 | |||||||||
Allocation of ESOP shares | 5 | 5 | 5 | |||||||||
Preferred stock dividends | (670) | (670) | (670) | |||||||||
Ending Balance, Preferred Stock at Jun. 30, 2016 | 37,935 | $ 0 | $ 37,935 | |||||||||
Ending Balance at Jun. 30, 2016 | $ 405,116 | $ 19,231 | $ 244,899 | $ 128,220 | $ (25,171) | $ 405,114 | $ 2 | |||||
[1] | Balances as of December 31, 2014 and December 31, 2015 are audited. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net income | $ 26,748 | $ 22,657 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred tax benefit | (45,054) | (35,191) |
Impairment of tax credit investments | 29,431 | 25,008 |
Accretion (amortization) of fair value adjustments related to acquisition | 69 | (85) |
Net discount accretion | 214 | 173 |
Loss on sale of investment securities | 0 | 50 |
Gain on assets sold | (1,051) | (11) |
Write-down of foreclosed assets | 232 | 100 |
Proceeds from sale of mortgage loans held for sale | 26,776 | 19,674 |
Mortgage loans originated and held for sale | (27,377) | (22,997) |
Gain on sale of loans | (34) | (116) |
Return on tax credit investment | (352) | 0 |
Derivative gains on terminated interest rate hedge, net | 658 | 539 |
Provision for loan losses | 8,383 | 8,600 |
Depreciation and amortization | 3,273 | 2,189 |
Share-based and other compensation expense | 999 | 690 |
Increase in cash surrender value of bank-owned life insurance | (680) | (705) |
Changes in operating assets and liabilities: | ||
Change in other assets | (13,460) | (5,297) |
Change in accrued interest receivable | (401) | (1,204) |
Change in accrued interest payable | 308 | 1,448 |
Change in other liabilities | (1,114) | (79) |
Net cash provided by operating activities | 7,568 | 15,443 |
Investing activities | ||
Purchases of available for sale investment securities | (92,286) | 0 |
Proceeds from maturities, prepayments, and calls of available for sale investment securities | 83,600 | 11,770 |
Proceeds from maturities, prepayments, and calls of held to maturity securities | 2,899 | 4,376 |
Net change in investments in short-term receivables | 25,604 | (13,440) |
Reimbursement of investment in tax credit entities | 13,810 | 0 |
Purchases of investments in tax credit entities | (41,410) | (27,200) |
Loans originated, net of repayments | (320,899) | (186,720) |
Proceeds from sale of bank premises and equipment | 13,537 | 0 |
Cash received in acquisition, net | 0 | 31,517 |
Purchases of bank premises and equipment | (7,107) | (2,727) |
Proceeds from disposition of real estate owned | 652 | 1,579 |
Net change in investment in real estate properties | 1,366 | (1,803) |
Net cash used in investing activities | (320,234) | (182,648) |
Financing activities | ||
Net increase in deposits | 87,905 | 204,215 |
Net change in repurchase agreements | 6,506 | (151) |
Proceeds from borrowings | 19,116 | 60,000 |
Proceeds from ESOP loan | 0 | 3,392 |
Repayment of borrowings | (4,005) | 0 |
Purchase of common stock by ESOP | 0 | (3,340) |
Proceeds from issuance of common stock | 771 | 414 |
Dividends paid | (670) | (190) |
Net cash provided by financing activities | 109,623 | 264,340 |
Net (decrease) increase in cash and cash equivalents | (203,043) | 97,135 |
Cash and cash equivalents at beginning of period | 349,054 | 50,888 |
Cash and cash equivalents at end of period | 146,011 | 148,023 |
Supplemental Information for non-cash investing activities | ||
Loans transferred to other real estate owned | $ 3,531 | $ 642 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of First NBC Bank Holding Company (Company) have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial statements have been included. The results of operations for the three-month and six -month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the entire fiscal year. These statements should be read in conjunction with the Company’s audited financial statements, including the notes thereto, which were filed with the Securities and Exchange Commission as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . In preparing the financial statements, the Company is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Nature of Operations The Company is a bank holding company that offers a broad range of financial services through First NBC Bank (Bank), a Louisiana state non-member bank, to businesses, institutions, and individuals in southeastern Louisiana and the Florida panhandle. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States and to prevailing practices within the banking industry. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and the Bank, and First NBC Bank’s wholly owned subsidiaries, which include First NBC Community Development, LLC (FNBC CDC), First NBC Community Development Fund, LLC (FNBC CDE) (collectively referred to as the Bank) and any variable interest entities of which the Company is the primary beneficiary. Substantially all of the variable interest entities (VIE) for which the Company is the primary beneficiary relate to tax credit investments. FNBC CDC is a Community Development Corporation formed to construct, purchase, and renovate affordable residential real estate properties in the New Orleans area. FNBC CDE is a Community Development Entity (CDE) formed to apply for and receive allocations of Federal New Markets Tax Credits (NMTC). Investments in Tax Credit Entities As part of its Community Reinvestment Act responsibilities and due to their favorable economics, the Company invests in tax credit-motivated projects. These projects produce tax credits issued under Federal Low-Income Housing, Federal Historic Rehabilitation, and Federal New Markets Tax Credits (Federal NMTC) programs. The Company generates its returns on tax credit motivated projects through the receipt of federal, and if applicable, state tax credits as well as equity returns. The federal tax credits are recorded as an offset to the income tax provision in the year that they are earned under federal income tax law – over 10 to 15 years, beginning in the year in which rental activity commences for Federal Low-Income Housing credits, in the year of the issuance of the certificate of occupancy and the property being placed into service for Federal Historic Rehabilitation credits, and over 7 years for Federal NMTC upon the investment of funds into the CDE. These credits, if not used in the tax return for the year of origination, can be carried forward for 20 years. The state credits are recorded in income when earned (usually when the project is placed in service) and sold to investors since the Company pays minimal state income taxes under Louisiana tax law. The Company invests in projects generating Federal Low-Income Housing credits, by investing in a tax credit entity, usually a limited liability company, which owns the real estate. The Company receives a 99.99% nonvoting interest in the entity that must be retained during the compliance period for the credits ( 15 years). Control of the tax credit entity rests in the .01% interest general partner, who has the power and authority to make decisions that impact economic performance of the project and is required to oversee and manage the project. The Company accounts for its investment in Federal Low-Income Housing credits utilizing the equity method of accounting. The Company begins to evaluate its investment for impairment at the time the tax credits are earned through the end of the 15 year compliance period. The Company evaluates its investment at the end of each reporting period for impairment and any residual returns are expected to be minor. For Federal Historic Rehabilitation credits, the Company invests in a tax credit entity, usually a limited liability company, which owns the real estate or a master tenant structure. In some cases, the Company receives a 99% nonvoting interest in the tax credit entity that must be retained during the compliance period for the credits ( 5 years). In some instances, the Company invests 99% in a pass through entity called a master tenant, which maintains an ownership interest in a limited liability company which owns the real estate. In most cases, the Company’s interest in the entity (in either structure) is generally reduced from a 99% interest to a 0% to 25% interest at the end of the compliance period. Control of the tax credit entity rests in the 1% interest general partner (in either structure), who has the power and authority to make decisions that impact economic performance of the project and is required to oversee and manage the project. The Company accounts for its investment in Federal Historic Rehabilitation credits utilizing the equity method of accounting. The Company begins to evaluate its investment for impairment at the time the credit is earned, which is typically in the year the project is placed in service, through the end of its compliance period. The Company evaluates its investment at the end of each reporting period for impairment and any expected residual returns reduce the amount of impairment recognized. For Federal NMTC, a different structure is required by federal tax law. In order to distribute Federal NMTC, the federal government allocates such credits to CDEs. The Company invests in both CDEs formed by unaffiliated parties and in CDEs formed by the Company. Projects must be commercial or real estate operations and are qualified by their location in low- income areas or by their employment of, or service to, low-income citizens. A CDE, in most cases, creates a special-purpose subsidiary for each project through which the credits are allocated and through which the proceeds from the tax credit investor and a leverage lender, if applicable, flow through to the project, which in turn generate the credit. The credits are calculated at 39% of the total CDE allocation to the project at the rate of 5% for the first three years and 6% for the next four years. Federal tax law requires special terms benefiting the qualified project, which can include below-market interest rates. The Company evaluates its investment for impairment under the equity method of accounting at the end of each reporting period, beginning at the time the tax credits are earned on the project through the end of the seven -year compliance period, and any residual returns are expected to be minor. When the Company also has a loan to the project, it is reported as a loan in the consolidated balance sheet, as the Company has credit exposure to the project and the loan is repaid at the end of the compliance period. In general, the debt has no principal payments during the compliance period but the Company may require the project to fund a sinking fund over the compliance period to achieve the same risk reduction effect as if principal is being amortized. When the Company is the tax credit investor in a CDE formed by an unaffiliated party, it has no control of the applicable CDE or the CDE’s special-purpose subsidiary. For projects which are funded through FNBC CDE, the Company consolidates its CDE and the specifically formed special-purpose entities since it maintains control over these entities; however, the Company does not have control over the entity which oversees the project. As part of the activities of FNBC CDE, the Company makes investments in the CDE for purposes of providing equity to the projects sponsored by the FNBC CDE. When a project is funded through FNBC CDE, the CDE will receive a CDE management fee at the time of the project's closing of approximately 4% and an annual fee of 0.5% of the qualified equity investment in the project. The annual fee is received until the end of the Federal NMTC compliance period. The CDE management fee earned is recorded in the consolidated statement of income as a component of noninterest income. The Company may pay a fee to the CDE when the project is funded through a CDE other than FNBC CDE at the time of a project's closing and annually during the compliance period for the allocation of the credits. The fee is recorded as a component of noninterest expense in the Company's consolidated statement of income over the Federal NMTC compliance period. The Company has the risk of credit recapture if the project fails during the compliance period for Federal Low-Income Housing and Federal Historic Rehabilitation transactions. For Federal NMTC transactions, the risk of credit recapture exists if investment requirements are not maintained during the compliance period. The risk of recapture for Federal NMTC transactions when the project is funded by FNBC CDE is described in Note 6. Such events, although rare, are accounted for when they occur and no such events have occurred to date involving FNBC CDE. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are susceptible to a significant change in the near term are the allowance for loan losses, income tax provision, fair value adjustments, impairment on tax credit investments, and share-based compensation. Concentration of Credit Risk The Company’s loan portfolio consists of the various types of loans described in Note 5. Real estate or other assets secure most loans. The majority of these loans have been made to individuals and businesses in the Company’s market area of southeastern Louisiana and the Florida panhandle, which are dependent on the area economy for their livelihoods and servicing of their loan obligations. The Company does not have any significant concentrations to any one industry or customer. The Company maintains deposits in other financial institutions that may, from time to time, exceed the federally insured deposit limits. Reclassifications Some amounts previously reported have been adjusted to reflect certain reclassification adjustments to conform to the current period presentation. These include reclassifications of amounts previously reported in occupancy and equipment expenses to rental property expenses. The Company has presented rental property expenses, previously presented as a component of other noninterest expense in its consolidated statements of income, and rental property income, previously presented as a component of other noninterest income in its consolidated statements of income, as separate components on its consolidated statements of income. Restatement The Company's consolidated financial statements for periods ended prior to December 31, 2015, including unaudited quarterly financial information were restated in the Annual Report on Form 10-K for the year ended December 31, 2015 (the "Restatement") filed with the Securities and Exchange Commission ("SEC") on August 25, 2016. The restated unaudited quarterly financial information was presented in Note 33 in the Annual Report on Form 10-K for the year ended December 31, 2015, which included the applicable restatement adjustments for each individual quarterly period from March 31, 2014 through September 30, 2015, the last date through which financial statements have previously been issued. The Restatement corrected the use of an inappropriate amortization method in accounting for the Company's various investments in tax credit partnerships, as opposed to proper application of the equity method of accounting, consolidation of certain investments in Federal Low-Income Housing Tax Credit entities because such entities were determined to be variable interest entities in which the Company was the primary beneficiary, various other adjustments and income tax effects related to the these adjustments. All applicable amounts relating to this Restatement have been reflected in the consolidated financial statements and disclosed in the notes to the consolidated financial statements in this Form 10-Q. Recent Accounting Pronouncements ASU No. 2014-09 and 2015-14 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 205): An Amendment of the FASB Accounting Standards Codification , which clarifies the principles for recognizing revenue from contracts with customers. The new accounting guidance, which does not apply to financial instruments, clarifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As part of that principle, the entity should identify the contract(s) with the customer, identify the performance obligation(s) of the contract, determine the transaction price, allocate that transaction price to the performance obligation(s) of the contract, and then recognize revenue when or as the entity satisfies the performance obligation(s). In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , which deferred the original effective date declared in ASU No. 2014-09 by one year. Accordingly, the amendments in ASU No. 2014-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that annual reporting period. The amendments will be applied through the election of one of two retrospective methods. The Company is in the process of evaluating the new guidance and its impact on the Company's financial condition or results of operations. ASU No. 2014-15 In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which will require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards in connection with preparing financial statements for each annual and interim reporting period. The new accounting guidance is for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early application permitted. The Company does not expect the new guidance to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-01 In January 2016, the FASB issued ASU No. 2016-01, Financial Instrument-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which (1) requires equity investments to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments with readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement to disclose the fair value instruments measured at amortized cost for entities that are not public business entities, (4) eliminates the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (5) requires public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes, (6) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (7) 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, and (8) clarifies that an 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. The new accounting guidance is for the annual period beginning after December 15, 2017, including interim periods. The Company does not expect the new guidance to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term for all leases (with the exception of short-term leases) at the commencement date. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The guidance is for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early application is permitted for all entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of the ASU to determine the potential impact the new standard will have on the Company's financial condition or results of operations. ASU No. 2016-05 In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require de-designation of that hedging relationship. The amendments apply to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The amendments may be applied on either a prospective basis or a modified retrospective basis. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-06 In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, that requires embedded derivatives to be separated from the host contract and accounted for separately as derivatives if certain criteria are met. The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. The amendments clarify what steps are required when assessing whether the economic characteristics and risks or call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-07 In March 2016, the FASB issued ASU 2016-07, Investments- Equity Method and Joint Ventures (Topic 323), which simplifies the transition to the equity method of accounting. The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available for sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-08 In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), that improves the operability and understandibility of the implementation guidance on principal versus agent considerations. The amendments relate to when another party, along with the entity, is involved in providing a good or service to a customer. It requires an entity to determine whether the nature of its promise is to provide that good or service to the customer (i.e., the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (i.e., the entity is an agent). Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-09 In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to improve the accounting for employee share-based payments. Several aspects of the accounting for share-based payment award transactions are simplified, including income tax consequences; classification of awards as either equity or liabilities; and classification on the statement of cash flows. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. The Company is currently assessing the pronouncement and the impact of adoption. ASU No. 2016-10 In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, that clarifies the identification of performance obligations and licensing from revenue from contracts with customers. The amendments help determine the whether promises to transfer goods or services to a customer are separately identifiable by emphasizing that an entity determines whether the nature of its promise in the contract is to transfer each of the goods or services or whether the promise is to transfer a combined item (or items) to which promised goods and/or services are inputs. In addition, the amendments clarify how to determine whether an entity's promise to grant a license provides a customer with either a right to use the entity's intellectual property or a right to access the entity's intellectual property. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing this pronouncement and adoption of this guidance, but it is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-12 In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which is intended to improve implementation guidance on certain narrow aspects of Topic 606. The amendments in this ASU: • Clarify how an entity assesses the collectability criterion in Step 1 of Topic 606; • Permit, as an accounting policy election, entities to exclude from the transaction price amounts collected from customers for all sales (and other similar) taxes; • Specify the measurement date of noncash consideration as the date of contract inception; • Clarify when a contract is considered completed for purposes of transition of Topic 606; and • Clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing this pronouncement and adoption of this guidance, but it is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU, more commonly referred to as Current Expected Credit Losses, or CECL, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2019, including interim reporting periods therein. Early application for public entities is permitted as of annual reporting periods beginning after December 15, 2018, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the ASU on the Company’s financial condition or results of operations. ASU No. 2016-15 In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 320): Clarification of Certain Cash Receipts and Cash Payments, to address eight specific cash flow issues with the objective of reducing diversity in practice. The issues identified within the ASU include: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application for public entities is permitted. The Company is currently evaluating the impact of the ASU on the Company’s financial condition or results of operations. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of Certain Assets and Liabilities of First National Bank of Crestview On January 16, 2015, the Company acquired certain assets and assumed certain liabilities from the Federal Deposit Insurance Corporation (FDIC), as receiver for First National Bank of Crestview, a full-service commercial bank headquartered in Crestview, Florida, which was closed and placed into receivership. Under the terms of the agreement, the Company agreed to assume all of the deposit liabilities, and acquire approximately $62.3 million of assets, of the failed bank. The acquired assets included the failed bank's performing loans, substantially all of its investment securities portfolio, and its three banking facilities, with the FDIC retaining the remaining assets. The transaction did not include a loss-share agreement with the FDIC. The Company received a settlement amount from the FDIC of $10.0 million and recorded goodwill of $1.2 million , as shown in the table below. With this acquisition, the Company expanded into the Florida Panhandle market through the addition of the three banking locations and an experienced in-market team that enhances the Company's ability to compete in that market. (In thousands) Total consideration received $ 10,035 Fair value of assets acquired, including identifiable intangible assets 61,088 Fair value of liabilities assumed 72,314 Goodwill $ 1,191 Acquisition of State Investors Bancorp, Inc. On November 30, 2015, the Company acquired State Investors Bancorp, Inc. (SIBC), the parent company for State-Investors Bank, which conducted business from four full service banking offices in the New Orleans metropolitan area. Under the terms of the agreement, each share of SIBC common stock was converted into cash in the amount of $21.51 per share and each issued and outstanding option to purchase a share of SIBC common stock, including any unvested option, which became fully vested in connection with the completion of the merger, was canceled and converted into cash in an amount equal to the difference between $21.51 and the exercise price of the stock option. The Company acquired all of the outstanding common stock of the former SIBC shareholders and all outstanding stock options for a total consideration of $48.7 million , which resulted in goodwill of $8.6 million , as shown in the table below. With this acquisition, the Company expanded its presence in the New Orleans metropolitan area which enhances its ability to compete in that market. The Company projects cost savings will be recognized in future periods through the elimination of redundant operations. (In thousands) Total consideration paid $ 48,744 Fair value of assets acquired, including identifiable intangible assets 254,080 Fair value of liabilities assumed 213,981 Goodwill $ 8,645 The Company incurred merger and acquisition costs of $1.2 million during 2015 for the two acquisitions discussed above. The amount of revenue and earnings for the acquired entities for any reporting period prior to the acquisition was not material and therefore not presented herein. During the second quarter of 2016, the Company finalized the purchase price allocation related to the First National Bank of Crestview and State Investors Bancorp, Inc. acquisitions. There were no additional adjustments made to the purchase price allocations. The acquired assets and liabilities, as well as the adjustments to record the assets and liabilities at their estimated fair values, are presented in the following tables: First National Bank of Crestview (In thousands) As Acquired Fair Value Adjustments As recorded by First NBC Bank Assets Cash and due from banks $ 1,511 $ — $ 1,511 Short-term investments 19,971 — 19,971 Investment securities-available for sale 9,559 — 9,559 Loans 27,647 (1,203 ) (1) 26,444 Bank premises 3,120 — 3,120 Core deposit intangible — 188 (2) 188 Other assets 455 (160 ) 295 Total Assets $ 62,263 $ (1,175 ) $ 61,088 Liabilities Deposits: Non-interest bearing $ 22,680 $ — $ 22,680 Interest bearing 49,584 16 (3) 49,600 Total deposits 72,264 16 72,280 Other liabilities 34 — 34 Total Liabilities $ 72,298 $ 16 $ 72,314 (1) The amount represents the adjustment of the book value of First National Bank of Crestview's loans to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. (2) The amount represents the estimated fair value of the core deposit intangible asset created in the acquisition. The core deposit intangible asset is being amortized over the estimated useful life of 12 years. (3) The adjustment is necessary because the weighted-average interest rate of First National Bank of Crestview's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment is being amortized to reduce future interest expense over the expected life of the deposits, which is estimated at 49 months . State Investors Bancorp, Inc. (In thousands) As Acquired Fair Value Adjustments As recorded by First NBC Bank Assets Cash and due from banks $ 20,031 $ — $ 20,031 Short-term investments 12,338 — 12,338 Investment securities-available for sale 27,388 (193 ) (1) 27,195 Loans 182,249 (2,830 ) (2) 179,419 Bank premises and equipment 7,708 592 (3) 8,300 Deferred tax asset 1,004 1,416 (4) 2,420 Core deposit intangible — 468 (5) 468 Other assets 3,909 — 3,909 Total Assets $ 254,627 $ (547 ) $ 254,080 Liabilities Deposits: Noninterest-bearing $ 11,416 $ — $ 11,416 Interest-bearing 141,235 1,245 (6) 142,480 Total deposits 152,651 1,245 153,896 Borrowings 55,913 868 (7) 56,781 Other liabilities 3,304 — 3,304 Total Liabilities $ 211,868 $ 2,113 $ 213,981 (1) The amount represents the adjustment of the book value of SIBC's investments to their estimated fair value based on fair values on the date of acquisition. (2) The amount represents the adjustment of the book value of loans acquired to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. (3) The amount represents the adjustment of the book value of SIBC's bank premises and equipment to their estimated fair value at the acquisition date based on their appraised value on the date of acquisition. (4) The amount represents the deferred tax asset recognized on the fair value adjustment of SIBC acquired assets and assumed liabilities. (5) The amount represents the estimated fair value of the core deposit intangible asset created in the acquisition. The core deposit intangible asset is being amortized over the estimated useful life of 12 years. (6) The adjustment is necessary because the weighted-average interest rate of SIBC's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment is being amortized to reduce future interest expense over the life of the deposits. (7) The adjustment represents the adjustment of the book value of SIBC's borrowings to their estimated fair value based on current interest rates and the credit characteristics inherent in the liability. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following sets forth the computation of basic net income per common share and diluted net income per common share: For the Three Months Ended For the Six Months Ended (In thousands, except per share data) 2016 2015 2016 2015 (Restated) (Restated) Basic: Income available to common shareholders $ 3,382 $ 12,388 $ 26,078 $ 22,054 Weighted-average common shares outstanding 19,105 18,620 19,096 18,611 Basic earnings per share $ 0.18 $ 0.67 $ 1.37 $ 1.19 Diluted: Income available to common shareholders $ 3,382 $ 12,388 $ 26,078 $ 22,054 Weighted-average common shares outstanding 19,105 18,620 19,096 18,611 Effect of dilutive securities: Stock options outstanding 154 418 233 401 Restricted shares outstanding — 3 — 2 Warrants 74 124 78 121 Weighted-average common shares outstanding – assuming dilution 19,333 19,165 19,407 19,135 Diluted earnings per share $ 0.18 $ 0.65 $ 1.34 $ 1.15 The effect from 51 thousand and 34 thousand shares of restricted stock grants were not included in the computation of diluted earnings per share for the three and six month periods ended June 30, 2016, respectively, because such amounts would have had an antidilutive effect on earnings per share. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and market values of investment securities, with gross unrealized gains and losses, as of June 30, 2016 and December 31, 2015 , were as follows: June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value (In thousands) Less Than One Year Greater Than One Year Available for sale: U.S. government agency securities $ 146,702 $ 2,747 $ — $ — $ 149,449 U.S. Treasury securities 13,014 114 — — 13,128 Municipal securities 11,969 158 — — 12,127 Mortgage-backed securities 117,475 1,347 (274 ) (41 ) 118,507 Corporate bonds 8,021 27 — — 8,048 Other equity securities 20 — — — 20 $ 297,201 $ 4,393 $ (274 ) $ (41 ) $ 301,279 Held to maturity: Municipal securities $ 38,162 $ 2,588 $ — $ — $ 40,750 Mortgage-backed securities 41,436 3,274 — (18 ) 44,692 $ 79,598 $ 5,862 $ — $ (18 ) $ 85,442 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value (In thousands) Less Than One Year Greater Than One Year Available for sale: U.S. government agency securities $ 151,369 $ 552 $ (1,591 ) $ (655 ) $ 149,675 U.S. Treasury securities 13,015 — — (312 ) 12,703 Municipal securities 12,115 76 — (91 ) 12,100 Mortgage-backed securities 78,227 367 (934 ) (149 ) 77,511 Corporate bonds 8,103 — (280 ) — 7,823 Other equity securities 20 — — — 20 Other debt securities 25,994 1 (1 ) — 25,994 $ 288,843 $ 996 $ (2,806 ) $ (1,207 ) $ 285,826 Held to maturity: Municipal securities $ 38,950 $ 1,888 $ — $ (18 ) $ 40,820 Mortgage-backed securities 43,124 674 (196 ) (1,622 ) 41,980 $ 82,074 $ 2,562 $ (196 ) $ (1,640 ) $ 82,800 During 2013, the Company transferred securities with a fair value of $95.4 million from available for sale to held to maturity. Management determined it had both the positive intent and ability to hold these securities until maturity. The reclassified securities consisted of municipal and mortgage-backed securities and were transferred due to movements in interest rates. The securities were reclassified at fair value at the time of transfer and represented a non-cash transaction. Accumulated other comprehensive income (loss) included pre-tax unrealized losses of $5.9 million on these securities at the date of transfer. As of June 30, 2016 , $4.2 million of pre-tax unrealized losses on these securities were included in accumulated other comprehensive income. These unrealized losses and offsetting other comprehensive income components are being amortized into net interest income over the remaining life of the related securities as a yield adjustment, resulting in no impact on future net income. As of June 30, 2016 and December 31, 2015 , the Company had 51 and 205 securities, respectively, that were in a loss position. The unrealized losses for each of the 51 securities relate to market interest rate changes. The Company has considered the current market for the securities in a loss position, as well as the severity and duration of the impairments, and expects that the value will recover. As of June 30, 2016 , management does not intend to sell these investments until the fair value exceeds amortized cost and it is more likely than not that the Company will not be required to sell debt securities before the anticipated recovery of the amortized cost basis of the security; thus, the impairment is determined not to be other-than-temporary. The amortized cost and estimated market values by contractual maturity of investment securities as of June 30, 2016 and December 31, 2015 are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 December 31, 2015 (In thousands) Weighted Average Yield Amortized Cost Estimated Market Value Weighted Average Yield Amortized Cost Estimated Market Value Available for sale: Due in one year or less 1.91 % $ 84,431 $ 85,284 1.19 % $ 36,599 $ 36,558 Due after one year through five years 1.89 146,155 148,084 1.71 134,275 133,485 Due after five years through ten years 2.44 54,069 55,341 1.88 105,950 104,184 Due after ten years 2.44 12,546 12,570 2.29 12,019 11,599 Total securities 2.00 % $ 297,201 $ 301,279 1.77 % $ 288,843 $ 285,826 Held to maturity: Due in one year or less 9.68 % $ 8,710 $ 8,892 4.90 % $ 3,190 $ 3,068 Due after one year through five years 3.86 40,584 43,409 3.68 36,673 38,371 Due after five years through ten years 3.18 10,423 11,162 3.25 14,416 14,968 Due after ten years 3.67 19,881 21,979 3.44 27,795 26,393 Total securities 3.74 % $ 79,598 $ 85,442 3.57 % $ 82,074 $ 82,800 Securities with estimated market values of $225.5 million and $233.2 million at June 30, 2016 and December 31, 2015 , respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, and long-term borrowings. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Loans | Loans Major classifications of loans at June 30, 2016 and December 31, 2015 were as follows: (In thousands) June 30, 2016 December 31, 2015 Commercial real estate loans: Construction $ 548,563 $ 522,269 Mortgage(1) 1,642,719 1,423,545 2,191,282 1,945,814 Consumer real estate loans: Construction 16 9 Mortgage 234,787 264,422 234,803 264,431 Commercial and industrial loans 1,304,952 1,221,283 Loans to individuals, excluding real estate 28,139 21,688 Other loans 20,809 5,377 3,779,985 3,458,593 Less allowance for loan losses (76,964 ) (78,478 ) Loans, net $ 3,703,021 $ 3,380,115 (1) Included in commercial real estate loans, mortgage, are owner-occupied real estate loans of $502.1 million at June 30, 2016 and $449.1 million at December 31, 2015 . A summary of changes in the allowance for loan losses during the three and six months ended June 30, 2016 and June 30, 2015 is as follows: Three Months Ended June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 6,706 $ 21,115 $ 5,293 $ 50,746 $ 329 $ 84,189 Charge-offs (25 ) (300 ) (45 ) (505 ) (5 ) (880 ) Recoveries — 9 4 2 5 20 (Recovery) Provision (609 ) 6,260 (1,408 ) (10,627 ) 19 (6,365 ) Balance, end of period $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Three Months Ended June 30, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 4,733 $ 16,750 $ 3,316 $ 20,205 $ 191 $ 45,195 Charge-offs (10 ) (501 ) (41 ) (122 ) (24 ) (698 ) Recoveries — 243 2 5 4 254 Provision 628 327 257 4,388 — 5,600 Balance, end of period $ 5,351 $ 16,819 $ 3,534 $ 24,476 $ 171 $ 50,351 Six Months Ended June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 5,027 $ 18,016 $ 3,500 $ 51,736 $ 199 $ 78,478 Charge-offs (25 ) (496 ) (45 ) (9,364 ) (7 ) (9,937 ) Recoveries — 13 4 14 9 40 Provision (Recovery) 1,070 9,551 385 (2,770 ) 147 8,383 Balance, end of period $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Six Months Ended June 30, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 4,030 $ 14,965 $ 3,316 $ 19,814 $ 211 $ 42,336 Charge-offs (12 ) (530 ) (41 ) (272 ) (50 ) (905 ) Recoveries — 243 2 66 9 320 Provision 1,333 2,141 257 4,868 1 8,600 Balance, end of period $ 5,351 $ 16,819 $ 3,534 $ 24,476 $ 171 $ 50,351 The allowance for loan losses and recorded investment in loans, including loans acquired with deteriorated credit quality, as of the dates indicated are as follows: June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 516 $ 4,722 $ 384 $ 20,433 $ 25 $ 26,080 Collectively evaluated for impairment 5,556 22,362 3,460 19,183 323 50,884 Total $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Outstanding loan balances: Individually evaluated for impairment $ 12,704 $ 25,554 $ 6,017 $ 127,311 $ 270 $ 171,856 Collectively evaluated for impairment 535,875 1,617,165 228,770 1,198,450 27,869 3,608,129 Total $ 548,579 $ 1,642,719 $ 234,787 $ 1,325,761 $ 28,139 $ 3,779,985 December 31, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 508 $ 5,674 $ 322 $ 40,176 $ 13 $ 46,693 Collectively evaluated for impairment 4,519 12,342 3,178 11,560 186 31,785 Total $ 5,027 $ 18,016 $ 3,500 $ 51,736 $ 199 $ 78,478 Outstanding loan balances: Individually evaluated for impairment $ 2,630 $ 30,007 $ 4,318 $ 119,652 $ 144 $ 156,751 Collectively evaluated for impairment 519,648 1,393,538 260,104 1,107,008 21,544 3,301,842 Total $ 522,278 $ 1,423,545 $ 264,422 $ 1,226,660 $ 21,688 $ 3,458,593 Credit quality indicators on the Company’s loan portfolio, including loans acquired with deteriorated credit quality, as of the dates indicated were as follows: June 30, 2016 (In thousands) Pass and Pass/Watch Special Mention Substandard Doubtful Total Construction $ 451,226 $ — $ 97,353 $ — $ 548,579 Commercial real estate 1,546,679 12,216 83,824 — 1,642,719 Consumer real estate 218,732 5,533 10,522 — 234,787 Commercial and industrial 1,126,209 9,754 170,474 19,324 1,325,761 Consumer 27,779 8 352 — 28,139 Total loans $ 3,370,625 $ 27,511 $ 362,525 $ 19,324 $ 3,779,985 December 31, 2015 (In thousands) Pass and Pass/Watch Special Mention Substandard Doubtful Total Construction $ 444,713 $ — $ 77,565 $ — $ 522,278 Commercial real estate 1,325,513 15,230 82,802 — 1,423,545 Consumer real estate 252,707 175 11,540 — 264,422 Commercial and industrial 1,038,567 7,377 161,391 19,325 1,226,660 Consumer 21,364 13 311 — 21,688 Total loans $ 3,082,864 $ 22,795 $ 333,609 $ 19,325 $ 3,458,593 The table above as of June 30, 2016 included $3.4 million of substandard loans which are loans acquired with deteriorated credit quality and accounted for under ASC 310-30. As of December 31, 2015 , included in the above table were $3.2 million of substandard loans which are loans acquired with deteriorated credit quality and accounted for under ASC 310-30. The above classifications follow regulatory guidelines and can generally be described as follows: • Pass and pass/watch loans are of satisfactory quality. • Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities, and possible reduction in the collateral values. • Substandard loans have an existing specific and well-defined weakness that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts may be experiencing overdrafts. Immediate corrective action is necessary. • Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable. An aged analysis of past due loans, including loans acquired with deteriorated credit quality, as of the dates indicated is as follows: June 30, 2016 (In thousands) Greater Than 30 and Fewer Than 90 Days Past Due 90 Days and Greater Past Due Total Past Due Current Loans Total Loans Real estate loans: Construction $ 656 $ 11,375 $ 12,031 $ 536,548 $ 548,579 Commercial real estate 3,941 5,111 9,052 1,633,667 1,642,719 Consumer real estate 3,737 4,547 8,284 226,503 234,787 Total real estate loans 8,334 21,033 29,367 2,396,718 2,426,085 Other loans: Commercial and industrial 4,648 11,411 16,059 1,309,702 1,325,761 Consumer 38 81 119 28,020 28,139 Total other loans 4,686 11,492 16,178 1,337,722 1,353,900 Total loans $ 13,020 $ 32,525 $ 45,545 $ 3,734,440 $ 3,779,985 December 31, 2015 (In thousands) Greater Than 30 and Fewer Than 90 Days Past Due 90 Days and Greater Past Due Total Past Due Current Loans Total Loans Real estate loans: Construction $ 430 $ 981 $ 1,411 $ 520,867 $ 522,278 Commercial real estate 979 5,943 6,922 1,416,623 1,423,545 Consumer real estate 5,628 2,517 8,145 256,277 264,422 Total real estate loans 7,037 9,441 16,478 2,193,767 2,210,245 Other loans: Commercial and industrial 2,018 2,588 4,606 1,222,054 1,226,660 Consumer 385 190 575 21,113 21,688 Total other loans 2,403 2,778 5,181 1,243,167 1,248,348 Total loans $ 9,440 $ 12,219 $ 21,659 $ 3,436,934 $ 3,458,593 The following is a summary of information pertaining to impaired loans excluding loans acquired with deteriorated credit quality, as of the periods indicated: June 30, 2016 (In thousands) Recorded Investment Contractual Balance Related Allowance With no related allowance recorded: Construction $ 10,596 $ 10,609 $ — Commercial real estate 5,364 6,830 — Consumer real estate 3,814 3,898 — Commercial and industrial 3,958 6,966 — Consumer 167 167 — Total $ 23,899 $ 28,470 $ — With an allowance recorded: Construction $ 2,108 $ 2,122 $ 516 Commercial real estate 20,190 20,853 4,722 Consumer real estate 2,203 2,287 384 Commercial and industrial 123,353 131,221 20,433 Consumer 103 103 25 Total $ 147,957 $ 156,586 $ 26,080 Total impaired loans: Construction $ 12,704 $ 12,731 $ 516 Commercial real estate 25,554 27,683 4,722 Consumer real estate 6,017 6,185 384 Commercial and industrial 127,311 138,187 20,433 Consumer 270 270 25 Total $ 171,856 $ 185,056 $ 26,080 December 31, 2015 (In thousands) Recorded Investment Contractual Balance Related Allowance With no related allowance recorded: Construction $ 902 $ 915 $ — Commercial real estate 12,090 12,424 — Consumer real estate 2,802 2,938 — Commercial and industrial 6,072 6,264 — Consumer 130 130 — Total $ 21,996 $ 22,671 $ — With an allowance recorded: Construction $ 1,728 $ 1,755 $ 508 Commercial real estate 17,917 17,982 5,674 Consumer real estate 1,516 1,534 322 Commercial and industrial 113,580 113,862 40,176 Consumer 14 14 13 Total $ 134,755 $ 135,147 $ 46,693 Total impaired loans: Construction $ 2,630 $ 2,670 $ 508 Commercial real estate 30,007 30,406 5,674 Consumer real estate 4,318 4,472 322 Commercial and industrial 119,652 120,126 40,176 Consumer 144 144 13 Total $ 156,751 $ 157,818 $ 46,693 For the Three Months Ended June 30, 2016 June 30, 2015 (In thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction $ 10,352 $ — $ 883 $ 18 Commercial real estate 5,683 — 3,402 14 Consumer real estate 3,466 6 2,364 — Commercial and industrial 3,929 — 7,514 — Consumer 94 — 99 — Total $ 23,524 $ 6 $ 14,262 $ 32 With an allowance recorded: Construction $ 2,132 $ — $ 22 $ — Commercial real estate 22,199 6 10,143 60 Consumer real estate 2,214 — 318 — Commercial and industrial 118,710 297 16,322 — Consumer 205 — 1 — Total $ 145,460 $ 303 $ 26,806 $ 60 Total impaired loans: Construction $ 12,484 $ — $ 905 $ 18 Commercial real estate 27,882 6 13,545 74 Consumer real estate 5,680 6 2,682 — Commercial and industrial 122,639 297 23,836 — Consumer 299 — 100 — Total $ 168,984 $ 309 $ 41,068 $ 92 For the Six Months Ended June 30, 2016 June 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction $ 5,749 $ — $ 891 $ 18 Commercial real estate 8,727 20 4,529 14 Consumer real estate 3,308 7 2,348 3 Commercial and industrial 5,015 — 371 — Consumer 149 — 163 — Total $ 22,948 $ 27 $ 8,302 $ 35 With an allowance recorded: Construction $ 1,912 $ 17 $ 21 $ — Commercial real estate 19,060 75 8,711 60 Consumer real estate 1,860 7 292 — Commercial and industrial 118,466 299 16,038 4 Consumer 59 — 2 — Total $ 141,357 $ 398 $ 25,064 $ 64 Total impaired loans: Construction $ 7,661 $ 17 $ 912 $ 18 Commercial real estate 27,787 95 13,240 74 Consumer real estate 5,168 14 2,640 3 Commercial and industrial 123,481 299 16,409 4 Consumer 208 — 165 — Total $ 164,305 $ 425 $ 33,366 $ 99 Also presented in the above table is the average recorded investment of the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is in nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. In the table above, all interest recognized represents cash collected. The average balances are calculated based on the month-end balances of the financing receivables of the period reported. As of June 30, 2016 , there were no cash secured tuition loans that were past due 90 days or more still accruing interest. There were $0.1 million in cash secured tuition loans that were past due 90 days or more still accruing interest as of December 31, 2015 . The following is a summary of information pertaining to nonaccrual loans as of the periods indicated: (In thousands) June 30, 2016 December 31, 2015 Nonaccrual loans: Construction $ 12,691 $ 2,633 Commercial real estate 21,634 27,937 Consumer real estate 5,948 4,538 Commercial and industrial 126,727 119,705 Consumer 310 125 Total $ 167,310 $ 154,938 As of June 30, 2016 and December 31, 2015 , the average recorded investment in nonaccrual loans was $163.1 million and $34.0 million , respectively. The amount of interest income that would have been recognized on nonaccrual loans based on contractual terms was $4.4 million and $1.8 million at June 30, 2016 and December 31, 2015 , respectively. Information about the Company’s TDRs at June 30, 2016 and December 31, 2015 is presented in the following tables: (In thousands) Current Greater Than 30 Days Past Due Nonaccrual TDRs Total TDRs As of June 30, 2016 Real estate loans: Construction $ — $ — $ 1,249 $ 1,249 Commercial real estate 1,842 — — 1,842 Consumer real estate 561 — 127 688 Total real estate loans 2,403 — 1,376 3,779 Other loans: Commercial and industrial 447 — 115,375 115,822 Total loans $ 2,850 $ — $ 116,751 $ 119,601 (In thousands) Current Greater Than 30 Days Past Due Nonaccrual TDRs Total TDRs As of December 31, 2015 Real estate loans: Construction $ 1 $ — $ 366 $ 367 Commercial real estate 2,215 — 1,393 3,608 Consumer real estate 585 — 771 1,356 Total real estate loans 2,801 — 2,530 5,331 Other loans: Commercial and industrial 482 — 109,727 110,209 Total loans $ 3,283 $ — $ 112,257 $ 115,540 There were no TDRs modified during the three months ended June 30, 2016 and June 30, 2015. The following table provides information on how the TDRs were modified during the six months ended June 30, 2016 and June 30, 2015. (In thousands) June 30, 2016 June 30, 2015 Maturity and interest rate adjustment $ — $ — Movement to, or extension of, interest rate-only payments 6,324 — Other concessions (1) — — Total $ 6,324 $ — A summary of information pertaining to modified terms of loans, as of the dates indicated, is as follows: As of June 30, 2016 (In thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Troubled debt restructuring: Construction 1 $ 1,249 $ 1,249 Commercial real estate 1 1,842 1,842 Consumer real estate 1 688 688 Commercial and industrial 18 115,822 115,822 21 $ 119,601 $ 119,601 As of December 31, 2015 (In thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Troubled debt restructuring: Construction 3 $ 367 $ 367 Commercial real estate 3 3,608 3,608 Consumer real estate 5 1,356 1,356 Commercial and industrial 30 110,209 110,209 41 $ 115,540 $ 115,540 None of the performing TDRs defaulted subsequent to the restructuring through the date the financial statements were available to be issued. As of June 30, 2016 , the Company was committed to lend $0.1 million in additional funds to customers whose loans were classified as impaired or TDR. As of December 31, 2015 , the Company was not committed to lend additional funds to any customer whose loan was classified as impaired or as a TDR. |
Investments in Tax Credit Entit
Investments in Tax Credit Entities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, All Other Investments [Abstract] | |
Investments in Tax Credit Entities | Investments in Tax Credit Entities Federal NMTC Investment in Bank Owned CDE The Bank owns a CDE which competes each year for a Federal New Markets Tax Credits allocation. The Federal NMTC program is administered by the Community Development Financial Institutions Fund of the U.S. Treasury and is aimed at stimulating economic and community development and job creation in low-income communities. The program provides federal tax credits to investors who make qualified equity investments (QEIs) in a CDE. The CDE is required to invest the proceeds of each QEI in projects located in or benefiting low-income communities, which are generally defined as those census tracts with poverty rates greater than 20% and/or median family incomes that are less than or equal to 80% of the area median family income. FNBC CDE has received allocations of Federal NMTC totaling $118.0 million since 2011. These allocations generated $46.0 million in tax credits. The credit provided to the investor totals 39% of each QEI in a CDE and is claimed over a seven -year credit allowance period. In each of the first three years, the investor receives a credit equal to 5% of the total QEI allocated to each project. For each of the remaining four years, the investor receives a credit equal to 6% of the total QEI allocated to each project. The Company has received up to $46.0 million in tax credits over the seven -year credit allowance period, beginning with the period in which the QEI was made, for its total QEI of $118.0 million . Through June 30, 2016 , FNBC CDE had invested in allocations of $118.0 million , of which $40.0 million was invested by the Company and $78.0 million was invested by other investors and leverage lenders, which include the Company. Of the $78.0 million invested by other investors and leverage lenders, $17.5 million was invested by the Company as the leverage lender. The Company's investment in its subsidiary CDE is eliminated upon consolidation. While the leverage lender's portion of the investment in the CDE is classified as a loan, the remaining investment in the CDE is accounted for as an equity method investment included in investment in tax credit entities in the accompanying consolidated balance sheets and evaluated at each reporting date for impairment. The impairment is evaluated based on the remaining tax credits available along with any applicable equity income or loss allocations. Impairment, if any, is recorded in the consolidated statement of income as a component of noninterest expense as well as any applicable equity income or loss allocations. The Federal NMTC claimed by the Company, with respect to each QEI, remain subject to recapture over each QEI’s credit allowance period upon the occurrence of any of the following: • CDE does not invest substantially all (defined as a minimum of 85% ) of the QEI proceeds in qualified low-income community investments; • CDE ceases to be a CDE; or • CDE redeems its QEI investment prior to the end of the current credit allowance period. At June 30, 2016 and December 31, 2015 , none of the above recapture events had occurred, nor, in the opinion of management, are such events anticipated to occur in the foreseeable future. As of June 30, 2016 , FNBC CDE had total assets of $132.3 million , consisting of cash of $7.3 million , loans of $112.3 million and other assets of $12.7 million , with liabilities of $0.5 million and capital of $131.8 million . Based on the structure of these transactions, the Company expects to recover its investment solely through use of the tax credits that were generated by the investments and any equity returns received through the limited partnership. Investments in Non-Bank Owned CDEs The Company is also a limited partner in several tax-advantaged limited partnerships and a shareholder in several C corporations whose purpose is to invest in approved Federal NMTC projects through CDEs that are not associated with FNBC CDE. During 2014, several of these partnerships that the Company was a limited partner in converted to C corporations. The Company’s ownership in the CDEs did not change based on the conversion. These investments are accounted for using the equity method of accounting and are included in investment in tax credit entities in the accompanying consolidated balance sheets. The limited partnerships and C corporations are considered VIEs. The VIEs have not been consolidated because the Company is not considered the primary beneficiary. The Company's investment in Federal NMTC partnerships and C corporations, net of the loans to the investment fund, are evaluated for impairment at the end of each reporting period based on the remaining tax credits available along with any equity income or loss allocations. Impairment, if any, is recorded in the consolidated statement of income as a component of noninterest expense as well as any applicable equity income or loss allocations. All of the Company’s investments in Federal NMTC structures are privately held, and their market values are not readily determinable. Based on the structure of these transactions, the Company expects to recover its investment solely through use of the tax credits that were generated by the investments and any equity returns received through the limited partnership. Federal Low-Income Housing Tax Credits The Company is a limited partner in tax-advantaged limited partnerships whose purpose is to invest in approved Federal Low-Income Housing tax credit projects. The tax credits associated with these investments are typically received over a 10 to 15 year period subject to recapture. These investments are accounted for using the equity method of accounting and are included in investments in tax credit entities in the accompanying consolidated balance sheets. The limited partnerships are considered to be VIEs and are evaluated for consolidation based on the Company's determination if it is the primary beneficiary. The Company has determined that it is not the primary beneficiary with respect to the limited partnerships. Thus, the VIEs have not been consolidated except for three Federal Low-Income Housing investments which were consolidated (See Note 7 for further details.) The Company utilizes the effective yield method to evaluate impairment. Impairment, if any, is recorded in the consolidated statement of income as a component of noninterest expense as well as any applicable equity income or loss allocations. All of the Company’s investments in Federal Low-Income Housing partnerships are evaluated for impairment at the end of each reporting period. Based on the structure of these transactions, the Company expects to recover its remaining investments at June 30, 2016 through the use of the tax credits that were generated by the investments and any equity returns received through the limited partnerships. Federal Historic Rehabilitation Tax Credits The Company is a limited partner in several tax-advantaged limited partnerships whose purpose is to invest in approved Federal Historic Rehabilitation tax credit projects. The tax credits generated on these investments are received in the year that the project is placed in service and subject to recapture over a 5 year period. These investments are accounted for using the equity method of accounting and are included in investments in tax credit entities in the accompanying consolidated balance sheets. The limited partnerships are considered to be VIEs and are evaluated for consolidation based on the Company's determination if it is the primary beneficiary. The Company has determined that it is not the primary beneficiary with respect to any of the limited partnerships and, thus, the VIEs have not been consolidated. All of the Company’s investments in limited partnerships are evaluated for impairment at the end of each reporting period and the Company records impairment, if any, in its consolidated statement of income as a component of noninterest expense. Impairment is calculated based upon future cash flows to be received during the Company's ownership period and the residual amount expected to be received upon disposition of its ownership position. Based on the structure of these transactions, the Company expects to recover its remaining investments in Federal Historic Rehabilitation tax credits at June 30, 2016 through the future cash flows and equity ownership in the underlying projects. State Historic Rehabilitation Tax Credits In connection with its limited partner interest in several tax-advantaged limited partnerships whose purpose is to invest in approved Federal Historic Rehabilitation tax credit projects, the Company can receive Louisiana State Historic Rehabilitation tax credits. These credits are certified by the State of Louisiana and are earned by the Company once the project is placed in service and then sold to investors after the State Historic Rehabilitation tax credits are certified by the State of Louisiana and transferred from the project to the Company. The credits are typically sold within 12 months of the project being placed in service. The Company evaluates its investment for impairment at the end of each reporting period. Impairment, if any, is recorded in its consolidated statement of income as a component of noninterest expense. State NMTC Investments in Non-Bank Owned CDEs The Company is a limited partner in several tax-advantaged limited partnerships that are CDEs, whose purpose is to invest in approved State NMTC projects that are not associated with FNBC CDE. Based on the structure of these transactions, the Company expects to recover its remaining investments in State NMTC at June 30, 2016 through the transfer of its ownership interest to third party investors. The Company evaluates its investment for impairment at the end of each reporting period. Impairment, if any, is recorded in its consolidated statement of income as a component of noninterest expense. The tables below set forth the Company's investment in Federal and State NMTC, Federal Low-Income Housing, and Federal and State Historic Rehabilitation tax credits, along with the credits earned and expected to be generated through its participation in these programs as of June 30, 2016 and December 31, 2015 : June 30, 2016 (In thousands) Investment Total Impairment(1) Loans to Investment Funds(2) Elimination(3) Net Investment Tax Benefits Recognized Through December 31, 2015 Tax Benefits Earned and Expected to be Recognized in 2016 Tax Benefits Earned and Expected to be Recognized in 2017, and Thereafter Total Tax Benefits Earned and to be Recognized NMTC: Federal: Bank Owned CDEs $ 154,720 $ (11,828 ) $ — $ (118,000 ) $ 24,892 $ 23,070 $ 7,080 $ 15,870 $ 46,020 Non-Bank Owned CDEs 191,303 (27,898 ) (141,200 ) — 22,205 46,349 9,792 18,084 74,225 Total NMTC 346,023 (39,726 ) (141,200 ) (118,000 ) 47,097 69,419 16,872 33,954 120,245 Low-Income Housing 30,175 (7,177 ) — — 22,998 17,153 5,051 33,921 56,125 Historic Rehabilitation: Federal(4) 89,991 (76,280 ) — — 13,711 75,305 51,381 — 126,686 State 13,437 (4,363 ) — — 9,074 — — — — Total Historic Rehabilitation(5) 103,428 (80,643 ) — — 22,785 75,305 51,381 — 126,686 Total $ 479,626 $ (127,546 ) $ (141,200 ) $ (118,000 ) $ 92,880 $ 161,877 $ 73,304 $ 67,875 $ 303,056 (1) Amount represents impairment recorded from the date of original investment through the current period, as evaluated by the Company at the end of each reporting period. (2) Interest-only leverage loans made to the investment fund during the compliance period for Federal NMTC. This amount is recorded as an offset to the Federal NMTC investment due to the interest-only leverage loan being repaid at the end of the compliance period. (3) Through June 30, 2016 , FNBC CDE received allocations of Federal NMTC from the CDFI Fund of the U.S. Treasury totaling $118.0 million over a three year period beginning in 2011. These investments are eliminated upon consolidation by the Company. (4) As of June 30, 2016 , the Company had $2.6 million invested and $23.0 million in outstanding commitments in Federal Historic Rehabilitation tax credit projects which the Company expects to generate Federal Historic Rehabilitation tax credits in 2017 and thereafter when the projects are completed, receive the certificates of occupancy, and the property is placed into service. The amount of tax credits to be received will be determined when the costs are certified. (5) The total accumulated impairment includes $ 0.5 million in additional accrued impairment in 2016 which is owed to the project based on the investment payment terms. December 31, 2015 (In thousands) Investment Total Impairment(1) Loans to Investment Funds(2) Elimination(3) Net Investment Tax Benefits Recognized Through December 31, 2014 Tax Benefits Recognized in 2015 Tax Benefits Earned and to be Recognized in 2016, and Thereafter Total Tax Benefits Earned and to be Recognized NMTC: Federal: Bank Owned CDEs $ 154,720 $ (8,288 ) $ — $ (118,000 ) $ 28,432 $ 16,490 $ 6,580 $ 22,950 $ 46,020 Non-Bank Owned CDEs 171,303 (23,738 ) (127,520 ) — 20,045 36,580 9,769 20,076 66,425 State 13,810 — — — 13,810 — — — — Total NMTC 339,833 (32,026 ) (127,520 ) (118,000 ) 62,287 53,070 16,349 43,026 112,445 Low-Income Housing 30,166 (5,979 ) — — 24,187 13,188 3,965 38,972 56,125 Historic Rehabilitation: Federal(4) 69,177 (55,220 ) — — 13,957 34,335 40,970 — 75,305 State 12,518 (4,363 ) — — 8,155 — — — — Total Historic Rehabilitation(5) 81,695 (59,583 ) — — 22,112 34,335 40,970 — 75,305 Total $ 451,694 $ (97,588 ) $ (127,520 ) $ (118,000 ) $ 108,586 $ 100,593 $ 61,284 $ 81,998 $ 243,875 (1) Amount represents impairment recorded from the date of original investment through the current period, as evaluated by the Company at the end of each reporting period. (2) Interest-only leverage loans made to the investment fund during the compliance period for Federal NMTC. This amount is recorded as an offset to the Federal NMTC investment due to the interest-only leverage loan being repaid at the end of the compliance period. (3) Through December 31, 2015 , FNBC CDE received allocations of Federal NMTC from the CDFI Fund of the U.S. Treasury totaling $118.0 million over a three year period beginning in 2011. These investments are eliminated upon consolidation by the Company. (4) As of December 31, 2015 , the Company had $10.9 million invested and $ 39.1 million in outstanding commitments in Federal Historic Rehabilitation tax credit projects which the Company expects to generate Federal Historic Rehabilitation tax credits in 2016, 2017 and 2018 when the projects are completed, receive the certificates of occupancy, and the property is placed into service. The amount of tax credits to be received will be determined when the costs are certified. (5) The total accumulated impairment includes $ 5.8 million in additional accrued impairment in 2015 which is owed to the project based on the investment payment terms. The impairment of tax credit investments for the three and six month periods ended June 30, 2016 and 2015 were as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2016 2015 2016 2015 (Restated) (Restated) Federal NMTC $ 3,850 $ 3,703 $ 7,700 $ 7,406 Federal Low-Income Housing 599 (765 ) 1,198 158 Federal and State Historic Rehabilitation 10,267 8,723 20,533 17,444 Total impairment $ 14,716 $ 11,661 $ 29,431 $ 25,008 The Company also made loans and leverage loans in the normal course of business to the tax credit related projects. These loans are subject to the Company's underwriting criteria and all loans were performing according to their contractual terms at June 30, 2016 . These loans were classified in the Company's loan portfolio at June 30, 2016 and December 31, 2015 as follows: (In thousands) June 30, 2016 December 31, 2015 Construction $ 59,110 $ 43,962 Commercial real estate 78,351 67,579 Commercial and industrial 145,201 117,389 Total loans $ 282,662 $ 228,930 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, All Other Investments [Abstract] | |
Variable Interest Entities | Variable Interest Entities During 2013, the Company entered into a loan workout arrangement with a borrower. The result of this workout arrangement is considered to be a VIE, whereby the Company is considered the primary beneficiary and must consolidate the VIE. The initial recognition of this VIE relationship was accounted for using acquisition accounting. Under acquisition accounting, the assets and liabilities acquired are accounted for at market value and intercompany balances are eliminated. The asset acquired from the debtor, which consisted of a net operating loss, is included in the accompanying consolidated balance sheets. A subsidiary of the Bank, FNBC CDC, is the managing member of several tax-advantaged limited partnerships whose purpose are to invest in approved Federal Low-Income Housing tax credit projects. This limited partnership is considered to be a VIE, whereby the Company is considered the primary beneficiary and must consolidate the VIE. As such, no impairment charges have been recorded with respect to this investment. The initial recognition of this VIE relationship was accounted for using acquisition accounting. Under acquisition accounting, the assets and liabilities acquired are accounted for at fair value and intercompany balances are eliminated. As of June 30, 2016 , the Company included in its consolidated financial statements the VIE's total assets of $70.2 million , consisting of real estate of $69.4 million and other assets of $0.8 million , with liabilities of $5.5 million and capital of ($25.4) million . |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Short-term Borrowings The following is a summary of short-term borrowings at June 30, 2016 and December 31, 2015 : (In thousands) June 30, 2016 December 31, 2015 FHLB $ 7,022 $ 8,000 Total short-term borrowings $ 7,022 $ 8,000 The Company's short-term borrowings at June 30, 2016 and December 31, 2015 consisted of advances from the Federal Home Loan Bank of Dallas (FHLB). These advances mature between August 22, 2016 and June 1, 2017 and had a weighted average interest rate of 0.85% as of June 30, 2016 . The Company paid off a $2.0 million short-term borrowing that matured on March 21, 2016. Long-term Borrowings During the first quarter of 2016, the Company entered into a $ 19.1 million loan with the State of Louisiana Office of Community Development, which bears interest at 1% and is due on September 1, 2045. The loan is related to a Federal Low-Income Housing tax credit investment. |
Derivative - Interest Rate Swap
Derivative - Interest Rate Swap Agreements | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative - Interest Rate Swap Agreements | Derivative - Interest Rate Swap Agreements Interest Rate Swaps. In March 2016, the Company entered into two delayed interest rate swaps with Counterparty C to manage exposure against the variability in the expected future cash flows attributed to changes in the benchmark interest rate on a portion of its variable-rate debt. The Company entered into these interest rate swap agreements to convert a portion of its forecasted variable-rate debt to a fixed rate, which is a cash flow hedge of a forecasted transaction. The notional amounts of each of the two derivative contracts is $55.0 million for a total notional amount of $110.0 million . The Company will receive payments from the counterparty at three-month LIBOR and make payments to the counterparty at fixed rates of 0.94% and 1.06% , respectively, on the $55.0 million notional amounts of each derivative contract. The cash flow payments on the derivatives began April 2016 and terminate October 2017 for the 0.94% interest rate swap and began April 2016 and terminate October 2018 for the 1.06% interest rate swap. During 2014, the Company entered into three delayed interest rate swaps with Counterparty C to manage exposure against the variability in the expected future cash flows attributed to changes in the benchmark interest rate on a portion of its variable-rate debt. The Company entered into these interest rate swap agreements to convert a portion of its forecasted variable-rate debt to a fixed rate, which is a cash flow hedge of a forecasted transaction. The total notional amount of the three derivative contracts is $165.0 million . During 2014, the Company terminated its cash flow hedge with Counterparty A, which the Company had entered into in 2012, as internal forecasts for future interest rates changed since this transaction was initiated. The total notional amount of the derivative contract was $115.0 million . The termination of the cash flow hedge resulted in a loss of $8.0 million which had been reflected in the Company’s operating cash flows and will be reclassified from accumulated other comprehensive income (loss) to net income as interest expense as it is amortized over a multi-year period consistent with the original maturity dates of the hedge which began in January 2015 and terminates in January 2022. The Company entered into a delayed interest rate swap with Counterparty B in 2013 to manage exposure against the variability in the expected future cash flows attributed to changes in the benchmark interest rate on a portion of its variable-rate debt. The Company entered into this interest rate swap agreement to convert a portion of its variable-rate debt to a fixed rate, which is a cash flow hedge of a forecasted transaction. The total notional amount of the derivative contract is $150.0 million . A summary of the Company's interest rate swaps as of June 30, 2016 is as follows: (In thousands) Notional Amount Fixed Payment Rate Term Interest rate swaps: Counterparty B: Three-month LIBOR swap $ 150,000 4.165% December 2016 - September 2023 150,000 Counterparty C: Three-month LIBOR swap 55,000 2.652% January 2018 - October 2023 Three-month LIBOR swap 55,000 2.753% January 2019 - October 2024 Three-month LIBOR swap 55,000 2.793% July 2019 - April 2025 Three-month LIBOR swap 55,000 0.940% April 2016 - October 2017 Three-month LIBOR swap 55,000 1.060% April 2016 - October 2018 275,000 Total interest rate swaps $ 425,000 Interest Rate-Prime Swaps. In May 2016, the Company terminated one of its interest rate-prime swaps with Counterparty C, which the Company entered into in 2015, as internal forecasts for future interest rates changed since this transaction was initiated. The total notional amount of the derivative contract was $10.0 million . The termination of the cash flow hedge resulted in a gain of $0.3 million which had been reflected in the Company’s operating cash flows and will be reclassified from accumulated other comprehensive income (loss) to net income as interest income as it is accreted over a multi-year period consistent with the original maturity dates of the hedge which began in June 2015 and terminates in March 2021. During 2015, the Company entered into six interest rate-prime swaps with Counterparty C to manage exposure against the variability in the expected future cash flows on the designated Prime, Prime plus 1% , Prime plus 1% floored at 5% , Prime plus 2% , Prime plus 2% actual/365, and Prime plus 2.25% pools of its floating rate loan portfolio. The Company entered into these interest rate-prime swap agreements to hedge the cash flows from these pools of its floating rate loan portfolio, which is expected to offset the variability in the expected future cash flows attributable to the fluctuations in the daily weighted average Wall Street Journal Prime index, which is a cash flow hedge of a forecasted transaction. The Company terminated the Prime plus 2.25% tranche during 2016 (see 2016 interest rate-prime swaps transaction with Counterparty C above). The total notional amount of the contracts is $135.0 million as of June 30, 2016 . The cash flow payments on the derivatives began March 2015 and terminate September 2022. During 2015, the Company terminated two of its interest rate-prime swaps with Counterparty B, which the Company entered into in 2013, as internal forecasts for future interest rates changed since these transactions were initiated. The total notional amount of the derivative contracts was $70.0 million . The termination of the cash flow hedges resulted in a gain of $1.3 million which had been reflected in the Company’s operating cash flows and will be reclassified from accumulated other comprehensive income (loss) to net income as interest income as it is accreted over a multi-year period consistent with the original maturity dates of the hedges which began in September 2013 and terminate in September 2019. During 2013, the Company entered into four interest rate swaps with Counterparty B to manage exposure against the variability in the expected future cash flows on the designated Prime, Prime plus 1% , Prime plus 1% floored at 5% and Prime plus 1% floored at 5.5% pools of its floating rate loan portfolio. The Company entered into the interest rate swap agreements to hedge the cash flows from these pools of its floating rate loan portfolio, which is expected to offset the variability in the expected future cash flows attributable to the fluctuations in the daily weighted average Wall Street Journal Prime index, which is a cash flow hedge of a forecasted transaction. The Company terminated the Prime and Prime plus 1% tranches during 2015 (see 2015 interest rate-prime swaps transaction with Counterparty B above). The total notional amount of the remaining prime hedges is $180.0 million as of June 30, 2016 . The cash flow payments on the derivatives began September 2013 and terminate September 2019. A summary of the Company's interest rate-prime swaps as of June 30, 2016 is as follows: (In thousands) Notional Amount Fixed Rate Term Interest rate-prime swaps: Counterparty B: Prime plus 1% floored at 5% $ 100,000 6.010% September 2013 - September 2019 Prime plus 1% floored at 5.5% 80,000 6.260% September 2013 - September 2019 180,000 Counterparty C: Prime 30,000 4.500% December 2015 - September 2022 Prime plus 1% 40,000 5.490% December 2015 - September 2022 Prime plus 1% floored at 5% 40,000 5.810% March 2015 - March 2021 Prime plus 2% 15,000 6.560% March 2015 - March 2021 Prime plus 2% actual/365 10,000 6.560% March 2015 - March 2021 135,000 Total interest rate-prime swaps $ 315,000 Information pertaining to outstanding derivative instruments is as follows: Derivative Assets Fair Value Derivative Liabilities Fair Value (In thousands) Balance Sheet Location June 30, 2016 December 31, 2015 Balance Sheet Location June 30, 2016 December 31, 2015 Derivatives designated as hedging instruments under ASC Topic 815: Interest rate swaps - Counterparty B Other Assets $ — $ — Other Liabilities $ 31,046 $ 20,613 Interest rate-prime swaps - Counterparty B Other Assets 5,172 3,815 Other Liabilities — — Interest rate swaps - Counterparty C Other Assets — — Other Liabilities 13,311 3,037 Interest rate-prime swaps - Counterparty C Other Assets 5,596 541 Other Liabilities — 406 $ 10,768 $ 4,356 $ 44,357 $ 24,056 The Company entered into master netting arrangements with both Counterparty B and Counterparty C whereby the delayed interest rate swaps and hedges would be settled net. Net fair values of the Counterparty B and Counterparty C delayed interest rate swaps and hedges as of June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet (In thousands) Derivatives Collateral Net Derivatives subject to master netting arrangements: Derivative liabilities: Counterparty B $ 25,874 $ — $ — $ 25,874 Counterparty C 7,715 — — 7,715 Net derivative liability $ 33,589 $ — $ — $ 33,589 December 31, 2015 Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet (In thousands) Derivatives Collateral Net Derivatives subject to master netting arrangements: Derivative liabilities: Counterparty B $ 16,798 $ — $ — $ 16,798 Counterparty C 2,902 — — 2,902 Net derivative liability $ 19,700 $ — $ — $ 19,700 Pursuant to the interest rate swap agreements described above with Counterparty B, the Company pledged collateral in the form of investment securities totaling $28.7 million (with a fair value at June 30, 2016 of $29.7 million ), which has been presented gross in the Company’s balance sheet. Pursuant to the interest rate swap agreements described above with Counterparty C, the Company pledged collateral in the form of investment securities totaling $6.2 million (with a fair value at June 30, 2016 of $6.7 million ), which has been presented gross in the Company’s balance sheet. There was no collateral posted from the counterparties to the Company as of June 30, 2016 . As a result of the discontinuance of the cash flow hedge with Counterparty A, the Company reclassified $0.3 million from accumulated other comprehensive income (loss) into interest expense for the three month periods ended June 30, 2016 and 2015. For the six month periods ended June 30, 2016 and 2015, the Company reclassified $0.6 million and $0.5 million , respectively, from accumulated other comprehensive income (loss) into interest expense. As a result of the discontinuance of the cash flow hedge with Counterparty B, the Company reclassified $0.1 million from accumulated other comprehensive income (loss) into interest income for the three month period ended June 30, 2016 . For the six month period ended June 30, 2016 , the Company reclassified $0.2 million from accumulated other comprehensive income (loss) into interest income. No amounts were reclassified into earnings for the three and six month periods ended June 30, 2015 . There were no amounts reclassified for the three and six month periods ended June 30, 2016 and 2015 from accumulated other comprehensive income (loss) into interest income as a result of the discontinuance of the cash flow hedges with Counterparty C. As of June 30, 2016 and 2015 , no amounts of gains or losses have been reclassified from accumulated comprehensive income (loss), nor have any amounts of gains or losses been recognized due to ineffectiveness of a portion of the derivatives. At June 30, 2016 , no amount of the derivatives will mature within the next 12 months. The Company does not expect to reclassify any amount from accumulated other comprehensive income (loss) into interest income over the next 12 months for derivatives that will be settled. At June 30, 2016 and 2015 , and for the six months then ended, information pertaining to the effect of the hedging instruments on the consolidated financial statements is as follows: Amount of Gain (Loss) Recognized in OCI, net of taxes (Effective Portion) (In thousands) As of June 30, Derivatives in ASC Topic 815 Cash Flow Hedging Relationships: 2016 2015 Interest rate swap with Counterparty A $ (4,124 ) $ (4,844 ) Interest rate swap and prime swaps with Counterparty B (16,120 ) (7,592 ) Interest rate swap and prime swaps with Counterparty C (4,848 ) 944 Total $ (25,092 ) $ (11,492 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax benefit on the statement of income for the three and six months ended June 30, 2016 and 2015 was as follows: For the Three Months Ended For the Six Months Ended (In thousands) 2016 2015 2016 2015 (Restated) (Restated) Current tax expense $ 293 $ 831 $ 1,134 $ 1,911 Deferred tax benefit (4,343 ) (19,427 ) (45,054 ) (35,191 ) Total tax benefit $ (4,050 ) $ (18,596 ) $ (43,920 ) $ (33,280 ) The amount of taxes in the accompanying consolidated statements of income is different from the expected amount using statutory federal income tax rates primarily due to the effect of various tax credits. As discussed in Note 6, the Company earns Federal NMTC, Federal Historic Rehabilitation, and Low-Income Housing tax credits, which reduce the Company’s federal income tax liability or create a carryforward as applicable. The Company uses the flow-through method to account for investment tax credits earned on eligible Federal tax credit investments. Under this method, the investment tax credits are recognized as a reduction of income tax expense. The Company is also required to reduce its tax basis of the investment in certain of the projects that generated the Federal NMTC or Federal Historic Rehabilitation tax credits by the amount of the credit generated in that year. The Company recorded a valuation allowance of $1.6 million for the net deferred tax assets at June 30, 2016 and $1.5 million at December 31, 2015. In determining whether a valuation allowance related to deferred tax assets was necessary, the Company considered all available evidence including historical information supplemented by all currently available information about future years. The Company also considered events occurring subsequent to June 30, 2016 but before the financial statements were released that provided additional evidence (negative or positive) regarding the likelihood of realization of existing deferred tax assets. The negative evidence cited included cumulative losses in recent years which included all "non-recurring" charges such as impairments or losses on certain assets that had not occurred previously. Certain of these items may not be indicative of future results, but they are part of total results, and therefore similar types of items may occur in future years. Considerable judgment is required in assessing the need for a valuation allowance including all available evidence, both positive and negative, as the assessment includes determining the feasibility and willingness of the Company to employ various tax planning strategies and projections of future taxable income. Management employed various stress test techniques when evaluating the reasonableness of their estimates, including future taxable income, deferring to scenarios deemed to be mostly likely and supportable by the available data. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation Matters On May 5, 2016, a purported securities class action suit was commenced in the United States District Court for the Eastern District of Louisiana, naming as defendants the Company, its Chairman and Chief Executive Officer, and its Chief Financial Officer. The lawsuit alleges violations of the Securities Exchange Act of 1934 and Rule 10b-5 in connection with allegedly false and misleading statements made by the Company related to its tax credit accounting practices and exposure to the oil and gas industry. The plaintiff seeks, among other things, damages for purchasers of the Company's common stock between May 10, 2013 and April 8, 2016. A group of institutional investors and a pension fund have each moved for appointment as lead plaintiff of the putative class. Briefing on the lead plaintiff motions was completed on July 19, 2016, and the parties currently await a decision on these motions from the Court. The Company believes that it has meritorious defenses and intends to defend this lawsuit vigorously. This lawsuit and any other related lawsuits are subject to inherent uncertainties, and the ultimate outcome of such litigation is necessarily unknown. The Company is unable to make a reasonable estimate of the amount or range of loss that could result from an unfavorable outcome in such matters. The SEC has commenced an investigation relating to the Company’s financial reporting. The Company is fully cooperating with the SEC. The Company cannot predict the duration or outcome of this investigation. Any action by the SEC or other government agency could result in civil or criminal sanctions against the Company and/or certain of its current or former officers, directors or employees. The Company is party to various other litigation matters incidental to the conduct of its business. Based upon its evaluation of information currently available, the Company believes that the ultimate resolution of any such proceedings will not have a material adverse effect, either individually or in the aggregate, on its financial condition, results of operations or cash flows. Off-Balance Sheet Arrangements The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These transactions include commitments to extend credit in the ordinary course of business to approved customers. Generally, loan commitments have been granted on a temporary basis for working capital or commercial real estate financing requirements or may be reflective of loans in various stages of funding. These commitments are recorded on the Company’s financial statements as they are funded. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Loan commitments include unused commitments for open-end lines secured by one to four family residential properties and commercial properties, commitments to fund loans secured by commercial real estate, construction loans, business lines of credit, and other unused commitments. Standby letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, the Company would be entitled to seek recovery from the customer. The Company minimizes its exposure to loss under loan commitments and standby letters of credit by subjecting them to credit approval and monitoring procedures. The effect on the Company’s revenues, expenses, cash flows, and liquidity of the unused portions of these commitments cannot be reasonably predicted because there is no guarantee that the lines of credit will be used. The reserve for losses on unfunded commitments totaled $0.3 million at June 30, 2016 and December 31, 2015 . The following is a summary of the total notional amount of loan commitments and standby letters of credit outstanding at June 30, 2016 and December 31, 2015 : (In thousands) June 30, 2016 December 31, 2015 Standby letters of credit $ 140,668 $ 106,232 Unused loan commitments 717,682 715,759 Total $ 858,350 $ 821,991 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income (loss) by component are presented in the following table: (In thousands) Cash Flow Terminated Cash Flow Hedges(2) Transfers of Available Total Balance at January 1, 2016 $ (12,806 ) $ (3,685 ) $ (2,926 ) $ (1,968 ) $ (21,385 ) Other comprehensive income (loss) before income taxes: Net change in unrealized gain (loss) (13,889 ) 263 — 7,102 (6,524 ) Reclassification of net losses realized and included in earnings — 394 — — 394 Amortization of unrealized net gain — — 303 — 303 Income tax expense (benefit) (4,769 ) 138 106 2,484 (2,041 ) Balance at June 30, 2016 $ (21,926 ) $ (3,166 ) $ (2,729 ) $ 2,650 $ (25,171 ) (In thousands) Cash Flow Hedges(1) Terminated Cash Flow Hedge(2) Transfers of Available for Sale Securities to Held to Maturity Available for Sale Securities Total Balance at January 1, 2015 $ (8,396 ) $ (5,194 ) $ (3,354 ) $ (2,793 ) $ (19,737 ) Other comprehensive income (loss) before income taxes: Net change in unrealized gain 2,690 — — 472 3,162 Reclassification of net losses realized and included in earnings — 539 — — 539 Amortization of unrealized net gain — — 288 — 288 Income tax expense (benefit) 942 189 101 165 1,397 Balance at June 30, 2015 $ (6,648 ) $ (4,844 ) $ (3,167 ) $ (2,486 ) $ (17,145 ) (1) Balances represent the net operating changes in all of the Company's cash flow hedge relationships as of the dates stated. (2) Balances represent the net unrealized gains (loss) at termination of a certain cash flow hedge, interest rate swap cash flow hedge, and interest rate-prime swap cash flow hedge relationships. See Note 9 for further explanation on the terminated cash flow hedges. |
Capital Requirements and Other
Capital Requirements and Other Regulatory Matters | 6 Months Ended |
Jun. 30, 2016 | |
Banking and Thrift [Abstract] | |
Capital Requirements and Other Regulatory Matters | Capital Requirements and Other Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets, Tier 1 capital to average assets, and common equity Tier 1 capital to risk-weighted assets. Management believes, as of June 30, 2016 and December 31, 2015 , that the Company and the Bank met all minimum capital adequacy requirements to which they were subject. As of June 30, 2016 , the Bank was classified as “adequately capitalized” for purposes of the FDIC's prompt corrective action requirements. To be categorized as "well capitalized", an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and common equity Tier 1 risk-based capital ratios as set forth in the following table. There are no conditions or events since the notification that management believes have changed that categorization. Section 29 of the Federal Deposit Insurance Act limits the use of brokered deposits by institutions that are less than “well-capitalized” and allows the FDIC to place restrictions on interest rates that institutions may pay. The following tables present the actual capital amounts and regulatory capital ratios for the Company and the Bank as of June 30, 2016 and December 31, 2015 : June 30, 2016 "Well Capitalized" Minimums Actual (In thousands) Ratio Amount First NBC Bank Holding Company Tier 1 leverage capital 5.97 % $ 281,298 Tier 1 risk-based capital 6.41 % 281,298 Total risk-based capital 9.03 % 396,079 Common equity tier 1 risk-based capital 6.41 % 281,298 First NBC Bank Tier 1 leverage capital 5.00 % 7.26 % $ 340,612 Tier 1 risk-based capital 8.00 % 7.78 % 340,612 Total risk-based capital 10.00 % 9.05 % 396,439 Common equity tier 1 risk-based capital 6.50 % 7.78 % 340,612 December 31, 2015 "Well Capitalized" Minimums Actual (In thousands) Ratio Amount First NBC Bank Holding Company Tier 1 leverage capital 6.03 % $ 265,191 Tier 1 risk-based capital 6.33 % 265,191 Total risk-based capital 9.04 % 378,815 Common equity tier 1 risk-based capital 6.33 % 265,191 First NBC Bank Tier 1 leverage capital 5.00 % 7.44 % $ 321,346 Tier 1 risk-based capital 8.00 % 7.68 % 321,346 Total risk-based capital 10.00 % 8.96 % 374,976 Common equity tier 1 risk-based capital 6.50 % 7.68 % 321,346 On October 11, 2016, the holding company was informed in writing by the Federal Reserve Bank of Atlanta (“FRB”) and Louisiana Office of Financial Institutions (“OFI”) that it is deemed to be in “troubled condition” under Section 225.71 of Regulation Y. This regulatory designation results in two primary limitations upon the holding company. First, the Company will be required to seek the prior approval of the FRB before adding any new director or senior executive officer at the holding company level or changing the responsibilities of any current senior executive officer. Second, the Company may not make indemnification or severance payments to, or enter into agreements providing for such indemnification or severance payments with, institution-affiliated parties, which include key employees and directors of the Company, without complying with certain statutory restrictions including prior approval of the FRB and FDIC. The FRB has also advised the Company that in light of its obligation to serve as a source of financial and managerial strength to the Bank, the Company should not incur indebtedness; distribute any interest, principal or other sums on subordinate debentures; declare or pay dividends on any of the Company’s equity securities; redeem any corporate stock; or make any other payment representing a reduction in capital, except for the payment of normal and routine operating expenses, without prior FRB and OFI approval. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures, clarifies the principle that fair value should be based on the assumptions that market participants would use when pricing the asset or liability and establishes a fair value hierarchy that prioritizes the inputs used to develop those assumptions and measure fair value. The hierarchy requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. A description of the valuation methodologies used for instruments measured at fair value follows, as well as the classification of such instruments within the valuation hierarchy. Securities are classified within Level 1 when quoted market prices are available in an active market. Inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are unavailable, fair value is estimated using pricing models or quoted prices of securities with similar characteristics, at which point the securities would be classified within Level 2 of the hierarchy. Examples include certain available for sale securities. The Company’s investment portfolio did not include Level 3 securities as of June 30, 2016 and December 31, 2015 . The Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy, based on the inputs used to determine the fair value at the measurement date in the tables below: June 30, 2016 Fair Value Measurement Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets ( Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Available for sale securities: U.S. government agency securities $ 149,449 $ — $ 149,449 $ — U.S. Treasury securities 13,128 — 13,128 — Municipal securities 12,127 — 12,127 — Mortgage-backed securities 118,507 — 118,507 — Corporate bonds 8,048 — 8,048 — Other equity securities 20 20 — — Total $ 301,279 $ 20 $ 301,259 $ — Liabilities Derivative instruments $ 33,589 $ — $ 33,589 $ — December 31, 2015 Fair Value Measurement Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets ( Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Available for sale securities: U.S. government agency securities $ 149,675 $ — $ 149,675 $ — U.S. Treasury securities 12,703 — 12,703 — Municipal securities 12,100 — 12,100 — Mortgage-backed securities 77,511 — 77,511 — Corporate bonds 7,823 — 7,823 — Other equity securities 20 20 — — Other debt securities 25,994 — 25,994 — Total $ 285,826 $ 20 $ 285,806 $ — Liabilities Derivative instruments $ 19,700 $ — $ 19,700 $ — The Company has segregated all financial assets and liabilities that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the tables below: June 30, 2016 Fair Value Measurement Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets ( Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Loans $ 147,957 $ — $ — $ 147,957 OREO 2,460 — — 2,460 Investment in tax credit entities 6,233 — — 6,233 $ 156,650 $ — $ — $ 156,650 December 31, 2015 Fair Value Measurement Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets ( Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Loans $ 134,755 $ — $ — $ 134,755 OREO 3,701 — — 3,701 Investment in tax credit entities 1,425 — — 1,425 $ 139,881 $ — $ — $ 139,881 In accordance with ASC Topic 310, the Company records loans and other real estate considered impaired at the lower of cost or fair value. Impaired loans, recorded at fair value, are Level 3 assets measured using appraisals from external parties of the collateral, less any prior liens primarily using the market or income approach. The residual value or fair value of the Company's investment in tax credit entities are Level 3 assets measured using appraisals or actual costs incurred on the underlying individual properties, applying an estimated inflation rate on the appraised values or actual costs and discounting the cash flows. The Company did not record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis during the six months ended June 30, 2016 or the year ended December 31, 2015 . ASC 820 requires the disclosure of the fair value for each class of financial instruments for which it is practicable to estimate. The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. ASC 820 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value. Cash and Cash Equivalents The carrying amounts of these short-term instruments approximate their fair values and would be classified within Level 1 of the hierarchy. Investment in Short-Term Receivables The carrying amounts of these short-term receivables approximate their fair value and would be classified within Level 1 of the hierarchy. Investment Securities Securities are classified within Level 1 where quoted market prices are available in the active market. If quoted market prices are unavailable, fair value is estimated using pricing models or quoted prices of securities with similar characteristics, at which point the securities would be classified within Level 2 of the hierarchy. Inputs include securities that have quoted prices in active markets for identical assets. Loans For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values are based on carrying values. Fair values for fixed-rate commercial real estate, commercial loans, and consumer loans are estimated using discounted cash flow analyses using interest rates currently being offered for loans with similar terms and borrowers of similar credit quality. Fair value of mortgage loans held for sale is based on commitments on hand from investors or prevailing market rates. The fair value associated with the loans includes estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows, which would be classified as Level 3 of the hierarchy. Deposits The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and would be categorized within Level 2 of the fair value hierarchy. The carrying amounts of variable-rate, fixed-term money market accounts approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. The fair value of the Company’s interest-bearing deposits would, therefore, be categorized within Level 3 of the fair value hierarchy. Short-Term Borrowings and Repurchase Agreements The carrying amounts of these short-term instruments approximate their fair values and would be classified within Level 2 of the hierarchy. Long-Term Borrowings The fair values of long-term borrowings are estimated using discounted cash flows analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt would, therefore, be categorized within Level 2 of the fair value hierarchy. Derivative Instruments Fair values for interest rate swap agreements are based upon the amounts required to settle the contracts. The derivative instruments are classified within Level 2 of the fair value hierarchy. The estimated fair values of the Company’s financial instruments were as follows as of the dates indicated: Fair Value Measurements at June 30, 2016 (In thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 146,011 $ 146,011 $ 146,011 $ — $ — Investment securities available for sale 301,279 301,279 20 301,259 — Investment securities held to maturity 79,598 85,442 — 85,442 — Loans and loans held for sale 3,783,183 3,766,902 — — 3,766,902 Financial Liabilities: Deposits, noninterest-bearing 381,553 381,553 — 381,553 — Deposits, interest-bearing 3,550,471 3,543,587 — — 3,543,587 Repurchase agreements 85,757 85,757 — 85,757 — Short-term borrowings 7,022 7,027 — 7,027 — Long-term borrowings 355,130 360,921 — 360,921 — Derivative instruments 33,589 33,589 — 33,589 — Fair Value Measurements at December 31, 2015 (In thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 349,054 $ 349,054 $ 349,054 $ — $ — Investment in short-term receivables 25,604 25,604 25,604 — — Investment securities available for sale 285,826 285,826 20 285,806 — Investment securities held to maturity 82,074 82,799 — 82,799 — Loans and loans held for sale 3,466,268 3,444,920 — — 3,444,920 Financial Liabilities: Deposits, noninterest-bearing 368,421 368,421 — 368,421 — Deposits, interest-bearing 3,475,421 3,403,261 — — 3,403,261 Repurchase agreements 79,251 79,251 — 79,251 — Short-term borrowings 8,000 7,994 — 7,994 — Long-term borrowings 339,042 341,033 — 341,033 — Derivative instruments 19,700 19,700 — 19,700 — |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Company is a bank holding company that offers a broad range of financial services through First NBC Bank (Bank), a Louisiana state non-member bank, to businesses, institutions, and individuals in southeastern Louisiana and the Florida panhandle. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States and to prevailing practices within the banking industry. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and the Bank, and First NBC Bank’s wholly owned subsidiaries, which include First NBC Community Development, LLC (FNBC CDC), First NBC Community Development Fund, LLC (FNBC CDE) (collectively referred to as the Bank) and any variable interest entities of which the Company is the primary beneficiary. Substantially all of the variable interest entities (VIE) for which the Company is the primary beneficiary relate to tax credit investments. FNBC CDC is a Community Development Corporation formed to construct, purchase, and renovate affordable residential real estate properties in the New Orleans area. FNBC CDE is a Community Development Entity (CDE) formed to apply for and receive allocations of Federal New Markets Tax Credits (NMTC). |
Investments in Tax Credit Entities | Investments in Tax Credit Entities As part of its Community Reinvestment Act responsibilities and due to their favorable economics, the Company invests in tax credit-motivated projects. These projects produce tax credits issued under Federal Low-Income Housing, Federal Historic Rehabilitation, and Federal New Markets Tax Credits (Federal NMTC) programs. The Company generates its returns on tax credit motivated projects through the receipt of federal, and if applicable, state tax credits as well as equity returns. The federal tax credits are recorded as an offset to the income tax provision in the year that they are earned under federal income tax law – over 10 to 15 years, beginning in the year in which rental activity commences for Federal Low-Income Housing credits, in the year of the issuance of the certificate of occupancy and the property being placed into service for Federal Historic Rehabilitation credits, and over 7 years for Federal NMTC upon the investment of funds into the CDE. These credits, if not used in the tax return for the year of origination, can be carried forward for 20 years. The state credits are recorded in income when earned (usually when the project is placed in service) and sold to investors since the Company pays minimal state income taxes under Louisiana tax law. The Company invests in projects generating Federal Low-Income Housing credits, by investing in a tax credit entity, usually a limited liability company, which owns the real estate. The Company receives a 99.99% nonvoting interest in the entity that must be retained during the compliance period for the credits ( 15 years). Control of the tax credit entity rests in the .01% interest general partner, who has the power and authority to make decisions that impact economic performance of the project and is required to oversee and manage the project. The Company accounts for its investment in Federal Low-Income Housing credits utilizing the equity method of accounting. The Company begins to evaluate its investment for impairment at the time the tax credits are earned through the end of the 15 year compliance period. The Company evaluates its investment at the end of each reporting period for impairment and any residual returns are expected to be minor. For Federal Historic Rehabilitation credits, the Company invests in a tax credit entity, usually a limited liability company, which owns the real estate or a master tenant structure. In some cases, the Company receives a 99% nonvoting interest in the tax credit entity that must be retained during the compliance period for the credits ( 5 years). In some instances, the Company invests 99% in a pass through entity called a master tenant, which maintains an ownership interest in a limited liability company which owns the real estate. In most cases, the Company’s interest in the entity (in either structure) is generally reduced from a 99% interest to a 0% to 25% interest at the end of the compliance period. Control of the tax credit entity rests in the 1% interest general partner (in either structure), who has the power and authority to make decisions that impact economic performance of the project and is required to oversee and manage the project. The Company accounts for its investment in Federal Historic Rehabilitation credits utilizing the equity method of accounting. The Company begins to evaluate its investment for impairment at the time the credit is earned, which is typically in the year the project is placed in service, through the end of its compliance period. The Company evaluates its investment at the end of each reporting period for impairment and any expected residual returns reduce the amount of impairment recognized. For Federal NMTC, a different structure is required by federal tax law. In order to distribute Federal NMTC, the federal government allocates such credits to CDEs. The Company invests in both CDEs formed by unaffiliated parties and in CDEs formed by the Company. Projects must be commercial or real estate operations and are qualified by their location in low- income areas or by their employment of, or service to, low-income citizens. A CDE, in most cases, creates a special-purpose subsidiary for each project through which the credits are allocated and through which the proceeds from the tax credit investor and a leverage lender, if applicable, flow through to the project, which in turn generate the credit. The credits are calculated at 39% of the total CDE allocation to the project at the rate of 5% for the first three years and 6% for the next four years. Federal tax law requires special terms benefiting the qualified project, which can include below-market interest rates. The Company evaluates its investment for impairment under the equity method of accounting at the end of each reporting period, beginning at the time the tax credits are earned on the project through the end of the seven -year compliance period, and any residual returns are expected to be minor. When the Company also has a loan to the project, it is reported as a loan in the consolidated balance sheet, as the Company has credit exposure to the project and the loan is repaid at the end of the compliance period. In general, the debt has no principal payments during the compliance period but the Company may require the project to fund a sinking fund over the compliance period to achieve the same risk reduction effect as if principal is being amortized. When the Company is the tax credit investor in a CDE formed by an unaffiliated party, it has no control of the applicable CDE or the CDE’s special-purpose subsidiary. For projects which are funded through FNBC CDE, the Company consolidates its CDE and the specifically formed special-purpose entities since it maintains control over these entities; however, the Company does not have control over the entity which oversees the project. As part of the activities of FNBC CDE, the Company makes investments in the CDE for purposes of providing equity to the projects sponsored by the FNBC CDE. When a project is funded through FNBC CDE, the CDE will receive a CDE management fee at the time of the project's closing of approximately 4% and an annual fee of 0.5% of the qualified equity investment in the project. The annual fee is received until the end of the Federal NMTC compliance period. The CDE management fee earned is recorded in the consolidated statement of income as a component of noninterest income. The Company may pay a fee to the CDE when the project is funded through a CDE other than FNBC CDE at the time of a project's closing and annually during the compliance period for the allocation of the credits. The fee is recorded as a component of noninterest expense in the Company's consolidated statement of income over the Federal NMTC compliance period. The Company has the risk of credit recapture if the project fails during the compliance period for Federal Low-Income Housing and Federal Historic Rehabilitation transactions. For Federal NMTC transactions, the risk of credit recapture exists if investment requirements are not maintained during the compliance period. The risk of recapture for Federal NMTC transactions when the project is funded by FNBC CDE is described in Note 6. Such events, although rare, are accounted for when they occur and no such events have occurred to date involving FNBC CDE. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are susceptible to a significant change in the near term are the allowance for loan losses, income tax provision, fair value adjustments, impairment on tax credit investments, and share-based compensation. |
Concentration of Credit Risk | Concentration of Credit Risk The Company’s loan portfolio consists of the various types of loans described in Note 5. Real estate or other assets secure most loans. The majority of these loans have been made to individuals and businesses in the Company’s market area of southeastern Louisiana and the Florida panhandle, which are dependent on the area economy for their livelihoods and servicing of their loan obligations. The Company does not have any significant concentrations to any one industry or customer. The Company maintains deposits in other financial institutions that may, from time to time, exceed the federally insured deposit limits. |
Reclassifications | Reclassifications Some amounts previously reported have been adjusted to reflect certain reclassification adjustments to conform to the current period presentation. These include reclassifications of amounts previously reported in occupancy and equipment expenses to rental property expenses. The Company has presented rental property expenses, previously presented as a component of other noninterest expense in its consolidated statements of income, and rental property income, previously presented as a component of other noninterest income in its consolidated statements of income, as separate components on its consolidated statements of income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU No. 2014-09 and 2015-14 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 205): An Amendment of the FASB Accounting Standards Codification , which clarifies the principles for recognizing revenue from contracts with customers. The new accounting guidance, which does not apply to financial instruments, clarifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As part of that principle, the entity should identify the contract(s) with the customer, identify the performance obligation(s) of the contract, determine the transaction price, allocate that transaction price to the performance obligation(s) of the contract, and then recognize revenue when or as the entity satisfies the performance obligation(s). In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , which deferred the original effective date declared in ASU No. 2014-09 by one year. Accordingly, the amendments in ASU No. 2014-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that annual reporting period. The amendments will be applied through the election of one of two retrospective methods. The Company is in the process of evaluating the new guidance and its impact on the Company's financial condition or results of operations. ASU No. 2014-15 In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which will require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards in connection with preparing financial statements for each annual and interim reporting period. The new accounting guidance is for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, with early application permitted. The Company does not expect the new guidance to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-01 In January 2016, the FASB issued ASU No. 2016-01, Financial Instrument-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which (1) requires equity investments to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments with readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement to disclose the fair value instruments measured at amortized cost for entities that are not public business entities, (4) eliminates the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (5) requires public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes, (6) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (7) 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, and (8) clarifies that an 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. The new accounting guidance is for the annual period beginning after December 15, 2017, including interim periods. The Company does not expect the new guidance to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term for all leases (with the exception of short-term leases) at the commencement date. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The guidance is for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early application is permitted for all entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of the ASU to determine the potential impact the new standard will have on the Company's financial condition or results of operations. ASU No. 2016-05 In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require de-designation of that hedging relationship. The amendments apply to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The amendments may be applied on either a prospective basis or a modified retrospective basis. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-06 In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, that requires embedded derivatives to be separated from the host contract and accounted for separately as derivatives if certain criteria are met. The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. The amendments clarify what steps are required when assessing whether the economic characteristics and risks or call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-07 In March 2016, the FASB issued ASU 2016-07, Investments- Equity Method and Joint Ventures (Topic 323), which simplifies the transition to the equity method of accounting. The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available for sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-08 In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), that improves the operability and understandibility of the implementation guidance on principal versus agent considerations. The amendments relate to when another party, along with the entity, is involved in providing a good or service to a customer. It requires an entity to determine whether the nature of its promise is to provide that good or service to the customer (i.e., the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (i.e., the entity is an agent). Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-09 In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to improve the accounting for employee share-based payments. Several aspects of the accounting for share-based payment award transactions are simplified, including income tax consequences; classification of awards as either equity or liabilities; and classification on the statement of cash flows. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. The Company is currently assessing the pronouncement and the impact of adoption. ASU No. 2016-10 In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, that clarifies the identification of performance obligations and licensing from revenue from contracts with customers. The amendments help determine the whether promises to transfer goods or services to a customer are separately identifiable by emphasizing that an entity determines whether the nature of its promise in the contract is to transfer each of the goods or services or whether the promise is to transfer a combined item (or items) to which promised goods and/or services are inputs. In addition, the amendments clarify how to determine whether an entity's promise to grant a license provides a customer with either a right to use the entity's intellectual property or a right to access the entity's intellectual property. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing this pronouncement and adoption of this guidance, but it is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-12 In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , which is intended to improve implementation guidance on certain narrow aspects of Topic 606. The amendments in this ASU: • Clarify how an entity assesses the collectability criterion in Step 1 of Topic 606; • Permit, as an accounting policy election, entities to exclude from the transaction price amounts collected from customers for all sales (and other similar) taxes; • Specify the measurement date of noncash consideration as the date of contract inception; • Clarify when a contract is considered completed for purposes of transition of Topic 606; and • Clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. However, an entity is still required to disclose the effect of the changes on any prior periods retrospectively adjusted. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing this pronouncement and adoption of this guidance, but it is not expected to have a material impact on the Company's financial condition or results of operations. ASU No. 2016-13 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU, more commonly referred to as Current Expected Credit Losses, or CECL, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2019, including interim reporting periods therein. Early application for public entities is permitted as of annual reporting periods beginning after December 15, 2018, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the ASU on the Company’s financial condition or results of operations. ASU No. 2016-15 In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 320): Clarification of Certain Cash Receipts and Cash Payments, to address eight specific cash flow issues with the objective of reducing diversity in practice. The issues identified within the ASU include: debt prepayments or extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. Early application for public entities is permitted. The Company is currently evaluating the impact of the ASU on the Company’s financial condition or results of operations. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
First National Bank of Crestview | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | (In thousands) Total consideration received $ 10,035 Fair value of assets acquired, including identifiable intangible assets 61,088 Fair value of liabilities assumed 72,314 Goodwill $ 1,191 |
Schedule of Acquired Assets and Liabilities | The acquired assets and liabilities, as well as the adjustments to record the assets and liabilities at their estimated fair values, are presented in the following tables: First National Bank of Crestview (In thousands) As Acquired Fair Value Adjustments As recorded by First NBC Bank Assets Cash and due from banks $ 1,511 $ — $ 1,511 Short-term investments 19,971 — 19,971 Investment securities-available for sale 9,559 — 9,559 Loans 27,647 (1,203 ) (1) 26,444 Bank premises 3,120 — 3,120 Core deposit intangible — 188 (2) 188 Other assets 455 (160 ) 295 Total Assets $ 62,263 $ (1,175 ) $ 61,088 Liabilities Deposits: Non-interest bearing $ 22,680 $ — $ 22,680 Interest bearing 49,584 16 (3) 49,600 Total deposits 72,264 16 72,280 Other liabilities 34 — 34 Total Liabilities $ 72,298 $ 16 $ 72,314 (1) The amount represents the adjustment of the book value of First National Bank of Crestview's loans to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. (2) The amount represents the estimated fair value of the core deposit intangible asset created in the acquisition. The core deposit intangible asset is being amortized over the estimated useful life of 12 years. (3) The adjustment is necessary because the weighted-average interest rate of First National Bank of Crestview's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment is being amortized to reduce future interest expense over the expected life of the deposits, which is estimated at 49 months . |
State-Investors Bank | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | (In thousands) Total consideration paid $ 48,744 Fair value of assets acquired, including identifiable intangible assets 254,080 Fair value of liabilities assumed 213,981 Goodwill $ 8,645 |
Schedule of Acquired Assets and Liabilities | State Investors Bancorp, Inc. (In thousands) As Acquired Fair Value Adjustments As recorded by First NBC Bank Assets Cash and due from banks $ 20,031 $ — $ 20,031 Short-term investments 12,338 — 12,338 Investment securities-available for sale 27,388 (193 ) (1) 27,195 Loans 182,249 (2,830 ) (2) 179,419 Bank premises and equipment 7,708 592 (3) 8,300 Deferred tax asset 1,004 1,416 (4) 2,420 Core deposit intangible — 468 (5) 468 Other assets 3,909 — 3,909 Total Assets $ 254,627 $ (547 ) $ 254,080 Liabilities Deposits: Noninterest-bearing $ 11,416 $ — $ 11,416 Interest-bearing 141,235 1,245 (6) 142,480 Total deposits 152,651 1,245 153,896 Borrowings 55,913 868 (7) 56,781 Other liabilities 3,304 — 3,304 Total Liabilities $ 211,868 $ 2,113 $ 213,981 (1) The amount represents the adjustment of the book value of SIBC's investments to their estimated fair value based on fair values on the date of acquisition. (2) The amount represents the adjustment of the book value of loans acquired to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. (3) The amount represents the adjustment of the book value of SIBC's bank premises and equipment to their estimated fair value at the acquisition date based on their appraised value on the date of acquisition. (4) The amount represents the deferred tax asset recognized on the fair value adjustment of SIBC acquired assets and assumed liabilities. (5) The amount represents the estimated fair value of the core deposit intangible asset created in the acquisition. The core deposit intangible asset is being amortized over the estimated useful life of 12 years. (6) The adjustment is necessary because the weighted-average interest rate of SIBC's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment is being amortized to reduce future interest expense over the life of the deposits. (7) The adjustment represents the adjustment of the book value of SIBC's borrowings to their estimated fair value based on current interest rates and the credit characteristics inherent in the liability. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Common Share | The following sets forth the computation of basic net income per common share and diluted net income per common share: For the Three Months Ended For the Six Months Ended (In thousands, except per share data) 2016 2015 2016 2015 (Restated) (Restated) Basic: Income available to common shareholders $ 3,382 $ 12,388 $ 26,078 $ 22,054 Weighted-average common shares outstanding 19,105 18,620 19,096 18,611 Basic earnings per share $ 0.18 $ 0.67 $ 1.37 $ 1.19 Diluted: Income available to common shareholders $ 3,382 $ 12,388 $ 26,078 $ 22,054 Weighted-average common shares outstanding 19,105 18,620 19,096 18,611 Effect of dilutive securities: Stock options outstanding 154 418 233 401 Restricted shares outstanding — 3 — 2 Warrants 74 124 78 121 Weighted-average common shares outstanding – assuming dilution 19,333 19,165 19,407 19,135 Diluted earnings per share $ 0.18 $ 0.65 $ 1.34 $ 1.15 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Market Values of Investment Securities with Gross Unrealized Gains and Losses | The amortized cost and market values of investment securities, with gross unrealized gains and losses, as of June 30, 2016 and December 31, 2015 , were as follows: June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value (In thousands) Less Than One Year Greater Than One Year Available for sale: U.S. government agency securities $ 146,702 $ 2,747 $ — $ — $ 149,449 U.S. Treasury securities 13,014 114 — — 13,128 Municipal securities 11,969 158 — — 12,127 Mortgage-backed securities 117,475 1,347 (274 ) (41 ) 118,507 Corporate bonds 8,021 27 — — 8,048 Other equity securities 20 — — — 20 $ 297,201 $ 4,393 $ (274 ) $ (41 ) $ 301,279 Held to maturity: Municipal securities $ 38,162 $ 2,588 $ — $ — $ 40,750 Mortgage-backed securities 41,436 3,274 — (18 ) 44,692 $ 79,598 $ 5,862 $ — $ (18 ) $ 85,442 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value (In thousands) Less Than One Year Greater Than One Year Available for sale: U.S. government agency securities $ 151,369 $ 552 $ (1,591 ) $ (655 ) $ 149,675 U.S. Treasury securities 13,015 — — (312 ) 12,703 Municipal securities 12,115 76 — (91 ) 12,100 Mortgage-backed securities 78,227 367 (934 ) (149 ) 77,511 Corporate bonds 8,103 — (280 ) — 7,823 Other equity securities 20 — — — 20 Other debt securities 25,994 1 (1 ) — 25,994 $ 288,843 $ 996 $ (2,806 ) $ (1,207 ) $ 285,826 Held to maturity: Municipal securities $ 38,950 $ 1,888 $ — $ (18 ) $ 40,820 Mortgage-backed securities 43,124 674 (196 ) (1,622 ) 41,980 $ 82,074 $ 2,562 $ (196 ) $ (1,640 ) $ 82,800 |
Summary of Amortized Cost and Estimated Market Values by Contractual Maturity of Investment Securities | The amortized cost and estimated market values by contractual maturity of investment securities as of June 30, 2016 and December 31, 2015 are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 December 31, 2015 (In thousands) Weighted Average Yield Amortized Cost Estimated Market Value Weighted Average Yield Amortized Cost Estimated Market Value Available for sale: Due in one year or less 1.91 % $ 84,431 $ 85,284 1.19 % $ 36,599 $ 36,558 Due after one year through five years 1.89 146,155 148,084 1.71 134,275 133,485 Due after five years through ten years 2.44 54,069 55,341 1.88 105,950 104,184 Due after ten years 2.44 12,546 12,570 2.29 12,019 11,599 Total securities 2.00 % $ 297,201 $ 301,279 1.77 % $ 288,843 $ 285,826 Held to maturity: Due in one year or less 9.68 % $ 8,710 $ 8,892 4.90 % $ 3,190 $ 3,068 Due after one year through five years 3.86 40,584 43,409 3.68 36,673 38,371 Due after five years through ten years 3.18 10,423 11,162 3.25 14,416 14,968 Due after ten years 3.67 19,881 21,979 3.44 27,795 26,393 Total securities 3.74 % $ 79,598 $ 85,442 3.57 % $ 82,074 $ 82,800 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Summary of Major Classifications of Loans | Major classifications of loans at June 30, 2016 and December 31, 2015 were as follows: (In thousands) June 30, 2016 December 31, 2015 Commercial real estate loans: Construction $ 548,563 $ 522,269 Mortgage(1) 1,642,719 1,423,545 2,191,282 1,945,814 Consumer real estate loans: Construction 16 9 Mortgage 234,787 264,422 234,803 264,431 Commercial and industrial loans 1,304,952 1,221,283 Loans to individuals, excluding real estate 28,139 21,688 Other loans 20,809 5,377 3,779,985 3,458,593 Less allowance for loan losses (76,964 ) (78,478 ) Loans, net $ 3,703,021 $ 3,380,115 (1) Included in commercial real estate loans, mortgage, are owner-occupied real estate loans of $502.1 million at June 30, 2016 and $449.1 million at December 31, 2015 . These loans were classified in the Company's loan portfolio at June 30, 2016 and December 31, 2015 as follows: (In thousands) June 30, 2016 December 31, 2015 Construction $ 59,110 $ 43,962 Commercial real estate 78,351 67,579 Commercial and industrial 145,201 117,389 Total loans $ 282,662 $ 228,930 |
Summary of Changes in Allowance for Loan Losses | A summary of changes in the allowance for loan losses during the three and six months ended June 30, 2016 and June 30, 2015 is as follows: Three Months Ended June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 6,706 $ 21,115 $ 5,293 $ 50,746 $ 329 $ 84,189 Charge-offs (25 ) (300 ) (45 ) (505 ) (5 ) (880 ) Recoveries — 9 4 2 5 20 (Recovery) Provision (609 ) 6,260 (1,408 ) (10,627 ) 19 (6,365 ) Balance, end of period $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Three Months Ended June 30, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 4,733 $ 16,750 $ 3,316 $ 20,205 $ 191 $ 45,195 Charge-offs (10 ) (501 ) (41 ) (122 ) (24 ) (698 ) Recoveries — 243 2 5 4 254 Provision 628 327 257 4,388 — 5,600 Balance, end of period $ 5,351 $ 16,819 $ 3,534 $ 24,476 $ 171 $ 50,351 Six Months Ended June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 5,027 $ 18,016 $ 3,500 $ 51,736 $ 199 $ 78,478 Charge-offs (25 ) (496 ) (45 ) (9,364 ) (7 ) (9,937 ) Recoveries — 13 4 14 9 40 Provision (Recovery) 1,070 9,551 385 (2,770 ) 147 8,383 Balance, end of period $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Six Months Ended June 30, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Balance, beginning of period $ 4,030 $ 14,965 $ 3,316 $ 19,814 $ 211 $ 42,336 Charge-offs (12 ) (530 ) (41 ) (272 ) (50 ) (905 ) Recoveries — 243 2 66 9 320 Provision 1,333 2,141 257 4,868 1 8,600 Balance, end of period $ 5,351 $ 16,819 $ 3,534 $ 24,476 $ 171 $ 50,351 |
Summary of Allowance for Loan Losses and Recorded Investment in Loans | The allowance for loan losses and recorded investment in loans, including loans acquired with deteriorated credit quality, as of the dates indicated are as follows: June 30, 2016 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 516 $ 4,722 $ 384 $ 20,433 $ 25 $ 26,080 Collectively evaluated for impairment 5,556 22,362 3,460 19,183 323 50,884 Total $ 6,072 $ 27,084 $ 3,844 $ 39,616 $ 348 $ 76,964 Outstanding loan balances: Individually evaluated for impairment $ 12,704 $ 25,554 $ 6,017 $ 127,311 $ 270 $ 171,856 Collectively evaluated for impairment 535,875 1,617,165 228,770 1,198,450 27,869 3,608,129 Total $ 548,579 $ 1,642,719 $ 234,787 $ 1,325,761 $ 28,139 $ 3,779,985 December 31, 2015 (In thousands) Construction Commercial Real Estate Consumer Real Estate Commercial and Industrial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 508 $ 5,674 $ 322 $ 40,176 $ 13 $ 46,693 Collectively evaluated for impairment 4,519 12,342 3,178 11,560 186 31,785 Total $ 5,027 $ 18,016 $ 3,500 $ 51,736 $ 199 $ 78,478 Outstanding loan balances: Individually evaluated for impairment $ 2,630 $ 30,007 $ 4,318 $ 119,652 $ 144 $ 156,751 Collectively evaluated for impairment 519,648 1,393,538 260,104 1,107,008 21,544 3,301,842 Total $ 522,278 $ 1,423,545 $ 264,422 $ 1,226,660 $ 21,688 $ 3,458,593 |
Summary of Credit Quality Indicators on Company's Loan Portfolio | Credit quality indicators on the Company’s loan portfolio, including loans acquired with deteriorated credit quality, as of the dates indicated were as follows: June 30, 2016 (In thousands) Pass and Pass/Watch Special Mention Substandard Doubtful Total Construction $ 451,226 $ — $ 97,353 $ — $ 548,579 Commercial real estate 1,546,679 12,216 83,824 — 1,642,719 Consumer real estate 218,732 5,533 10,522 — 234,787 Commercial and industrial 1,126,209 9,754 170,474 19,324 1,325,761 Consumer 27,779 8 352 — 28,139 Total loans $ 3,370,625 $ 27,511 $ 362,525 $ 19,324 $ 3,779,985 December 31, 2015 (In thousands) Pass and Pass/Watch Special Mention Substandard Doubtful Total Construction $ 444,713 $ — $ 77,565 $ — $ 522,278 Commercial real estate 1,325,513 15,230 82,802 — 1,423,545 Consumer real estate 252,707 175 11,540 — 264,422 Commercial and industrial 1,038,567 7,377 161,391 19,325 1,226,660 Consumer 21,364 13 311 — 21,688 Total loans $ 3,082,864 $ 22,795 $ 333,609 $ 19,325 $ 3,458,593 |
Age Analysis of Past Due Loans Including Loans Acquired with Deteriorated Credit Quality | An aged analysis of past due loans, including loans acquired with deteriorated credit quality, as of the dates indicated is as follows: June 30, 2016 (In thousands) Greater Than 30 and Fewer Than 90 Days Past Due 90 Days and Greater Past Due Total Past Due Current Loans Total Loans Real estate loans: Construction $ 656 $ 11,375 $ 12,031 $ 536,548 $ 548,579 Commercial real estate 3,941 5,111 9,052 1,633,667 1,642,719 Consumer real estate 3,737 4,547 8,284 226,503 234,787 Total real estate loans 8,334 21,033 29,367 2,396,718 2,426,085 Other loans: Commercial and industrial 4,648 11,411 16,059 1,309,702 1,325,761 Consumer 38 81 119 28,020 28,139 Total other loans 4,686 11,492 16,178 1,337,722 1,353,900 Total loans $ 13,020 $ 32,525 $ 45,545 $ 3,734,440 $ 3,779,985 December 31, 2015 (In thousands) Greater Than 30 and Fewer Than 90 Days Past Due 90 Days and Greater Past Due Total Past Due Current Loans Total Loans Real estate loans: Construction $ 430 $ 981 $ 1,411 $ 520,867 $ 522,278 Commercial real estate 979 5,943 6,922 1,416,623 1,423,545 Consumer real estate 5,628 2,517 8,145 256,277 264,422 Total real estate loans 7,037 9,441 16,478 2,193,767 2,210,245 Other loans: Commercial and industrial 2,018 2,588 4,606 1,222,054 1,226,660 Consumer 385 190 575 21,113 21,688 Total other loans 2,403 2,778 5,181 1,243,167 1,248,348 Total loans $ 9,440 $ 12,219 $ 21,659 $ 3,436,934 $ 3,458,593 |
Summary of Information Pertaining to Impaired Loans | The following is a summary of information pertaining to impaired loans excluding loans acquired with deteriorated credit quality, as of the periods indicated: June 30, 2016 (In thousands) Recorded Investment Contractual Balance Related Allowance With no related allowance recorded: Construction $ 10,596 $ 10,609 $ — Commercial real estate 5,364 6,830 — Consumer real estate 3,814 3,898 — Commercial and industrial 3,958 6,966 — Consumer 167 167 — Total $ 23,899 $ 28,470 $ — With an allowance recorded: Construction $ 2,108 $ 2,122 $ 516 Commercial real estate 20,190 20,853 4,722 Consumer real estate 2,203 2,287 384 Commercial and industrial 123,353 131,221 20,433 Consumer 103 103 25 Total $ 147,957 $ 156,586 $ 26,080 Total impaired loans: Construction $ 12,704 $ 12,731 $ 516 Commercial real estate 25,554 27,683 4,722 Consumer real estate 6,017 6,185 384 Commercial and industrial 127,311 138,187 20,433 Consumer 270 270 25 Total $ 171,856 $ 185,056 $ 26,080 December 31, 2015 (In thousands) Recorded Investment Contractual Balance Related Allowance With no related allowance recorded: Construction $ 902 $ 915 $ — Commercial real estate 12,090 12,424 — Consumer real estate 2,802 2,938 — Commercial and industrial 6,072 6,264 — Consumer 130 130 — Total $ 21,996 $ 22,671 $ — With an allowance recorded: Construction $ 1,728 $ 1,755 $ 508 Commercial real estate 17,917 17,982 5,674 Consumer real estate 1,516 1,534 322 Commercial and industrial 113,580 113,862 40,176 Consumer 14 14 13 Total $ 134,755 $ 135,147 $ 46,693 Total impaired loans: Construction $ 2,630 $ 2,670 $ 508 Commercial real estate 30,007 30,406 5,674 Consumer real estate 4,318 4,472 322 Commercial and industrial 119,652 120,126 40,176 Consumer 144 144 13 Total $ 156,751 $ 157,818 $ 46,693 For the Three Months Ended June 30, 2016 June 30, 2015 (In thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction $ 10,352 $ — $ 883 $ 18 Commercial real estate 5,683 — 3,402 14 Consumer real estate 3,466 6 2,364 — Commercial and industrial 3,929 — 7,514 — Consumer 94 — 99 — Total $ 23,524 $ 6 $ 14,262 $ 32 With an allowance recorded: Construction $ 2,132 $ — $ 22 $ — Commercial real estate 22,199 6 10,143 60 Consumer real estate 2,214 — 318 — Commercial and industrial 118,710 297 16,322 — Consumer 205 — 1 — Total $ 145,460 $ 303 $ 26,806 $ 60 Total impaired loans: Construction $ 12,484 $ — $ 905 $ 18 Commercial real estate 27,882 6 13,545 74 Consumer real estate 5,680 6 2,682 — Commercial and industrial 122,639 297 23,836 — Consumer 299 — 100 — Total $ 168,984 $ 309 $ 41,068 $ 92 For the Six Months Ended June 30, 2016 June 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction $ 5,749 $ — $ 891 $ 18 Commercial real estate 8,727 20 4,529 14 Consumer real estate 3,308 7 2,348 3 Commercial and industrial 5,015 — 371 — Consumer 149 — 163 — Total $ 22,948 $ 27 $ 8,302 $ 35 With an allowance recorded: Construction $ 1,912 $ 17 $ 21 $ — Commercial real estate 19,060 75 8,711 60 Consumer real estate 1,860 7 292 — Commercial and industrial 118,466 299 16,038 4 Consumer 59 — 2 — Total $ 141,357 $ 398 $ 25,064 $ 64 Total impaired loans: Construction $ 7,661 $ 17 $ 912 $ 18 Commercial real estate 27,787 95 13,240 74 Consumer real estate 5,168 14 2,640 3 Commercial and industrial 123,481 299 16,409 4 Consumer 208 — 165 — Total $ 164,305 $ 425 $ 33,366 $ 99 |
Summary of Nonaccrual Loans | The following is a summary of information pertaining to nonaccrual loans as of the periods indicated: (In thousands) June 30, 2016 December 31, 2015 Nonaccrual loans: Construction $ 12,691 $ 2,633 Commercial real estate 21,634 27,937 Consumer real estate 5,948 4,538 Commercial and industrial 126,727 119,705 Consumer 310 125 Total $ 167,310 $ 154,938 |
Summary of Company's Troubled Debt Restructurings ("TDRs') | Information about the Company’s TDRs at June 30, 2016 and December 31, 2015 is presented in the following tables: (In thousands) Current Greater Than 30 Days Past Due Nonaccrual TDRs Total TDRs As of June 30, 2016 Real estate loans: Construction $ — $ — $ 1,249 $ 1,249 Commercial real estate 1,842 — — 1,842 Consumer real estate 561 — 127 688 Total real estate loans 2,403 — 1,376 3,779 Other loans: Commercial and industrial 447 — 115,375 115,822 Total loans $ 2,850 $ — $ 116,751 $ 119,601 (In thousands) Current Greater Than 30 Days Past Due Nonaccrual TDRs Total TDRs As of December 31, 2015 Real estate loans: Construction $ 1 $ — $ 366 $ 367 Commercial real estate 2,215 — 1,393 3,608 Consumer real estate 585 — 771 1,356 Total real estate loans 2,801 — 2,530 5,331 Other loans: Commercial and industrial 482 — 109,727 110,209 Total loans $ 3,283 $ — $ 112,257 $ 115,540 |
Summary of Information on TDRs Modification | The following table provides information on how the TDRs were modified during the six months ended June 30, 2016 and June 30, 2015. (In thousands) June 30, 2016 June 30, 2015 Maturity and interest rate adjustment $ — $ — Movement to, or extension of, interest rate-only payments 6,324 — Other concessions (1) — — Total $ 6,324 $ — |
Summary of Information Pertaining to Modified Terms of Loans | A summary of information pertaining to modified terms of loans, as of the dates indicated, is as follows: As of June 30, 2016 (In thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Troubled debt restructuring: Construction 1 $ 1,249 $ 1,249 Commercial real estate 1 1,842 1,842 Consumer real estate 1 688 688 Commercial and industrial 18 115,822 115,822 21 $ 119,601 $ 119,601 As of December 31, 2015 (In thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Troubled debt restructuring: Construction 3 $ 367 $ 367 Commercial real estate 3 3,608 3,608 Consumer real estate 5 1,356 1,356 Commercial and industrial 30 110,209 110,209 41 $ 115,540 $ 115,540 |
Investments in Tax Credit Ent27
Investments in Tax Credit Entities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, All Other Investments [Abstract] | |
Investment Holdings, Schedule of Investments | The tables below set forth the Company's investment in Federal and State NMTC, Federal Low-Income Housing, and Federal and State Historic Rehabilitation tax credits, along with the credits earned and expected to be generated through its participation in these programs as of June 30, 2016 and December 31, 2015 : June 30, 2016 (In thousands) Investment Total Impairment(1) Loans to Investment Funds(2) Elimination(3) Net Investment Tax Benefits Recognized Through December 31, 2015 Tax Benefits Earned and Expected to be Recognized in 2016 Tax Benefits Earned and Expected to be Recognized in 2017, and Thereafter Total Tax Benefits Earned and to be Recognized NMTC: Federal: Bank Owned CDEs $ 154,720 $ (11,828 ) $ — $ (118,000 ) $ 24,892 $ 23,070 $ 7,080 $ 15,870 $ 46,020 Non-Bank Owned CDEs 191,303 (27,898 ) (141,200 ) — 22,205 46,349 9,792 18,084 74,225 Total NMTC 346,023 (39,726 ) (141,200 ) (118,000 ) 47,097 69,419 16,872 33,954 120,245 Low-Income Housing 30,175 (7,177 ) — — 22,998 17,153 5,051 33,921 56,125 Historic Rehabilitation: Federal(4) 89,991 (76,280 ) — — 13,711 75,305 51,381 — 126,686 State 13,437 (4,363 ) — — 9,074 — — — — Total Historic Rehabilitation(5) 103,428 (80,643 ) — — 22,785 75,305 51,381 — 126,686 Total $ 479,626 $ (127,546 ) $ (141,200 ) $ (118,000 ) $ 92,880 $ 161,877 $ 73,304 $ 67,875 $ 303,056 (1) Amount represents impairment recorded from the date of original investment through the current period, as evaluated by the Company at the end of each reporting period. (2) Interest-only leverage loans made to the investment fund during the compliance period for Federal NMTC. This amount is recorded as an offset to the Federal NMTC investment due to the interest-only leverage loan being repaid at the end of the compliance period. (3) Through June 30, 2016 , FNBC CDE received allocations of Federal NMTC from the CDFI Fund of the U.S. Treasury totaling $118.0 million over a three year period beginning in 2011. These investments are eliminated upon consolidation by the Company. (4) As of June 30, 2016 , the Company had $2.6 million invested and $23.0 million in outstanding commitments in Federal Historic Rehabilitation tax credit projects which the Company expects to generate Federal Historic Rehabilitation tax credits in 2017 and thereafter when the projects are completed, receive the certificates of occupancy, and the property is placed into service. The amount of tax credits to be received will be determined when the costs are certified. (5) The total accumulated impairment includes $ 0.5 million in additional accrued impairment in 2016 which is owed to the project based on the investment payment terms. December 31, 2015 (In thousands) Investment Total Impairment(1) Loans to Investment Funds(2) Elimination(3) Net Investment Tax Benefits Recognized Through December 31, 2014 Tax Benefits Recognized in 2015 Tax Benefits Earned and to be Recognized in 2016, and Thereafter Total Tax Benefits Earned and to be Recognized NMTC: Federal: Bank Owned CDEs $ 154,720 $ (8,288 ) $ — $ (118,000 ) $ 28,432 $ 16,490 $ 6,580 $ 22,950 $ 46,020 Non-Bank Owned CDEs 171,303 (23,738 ) (127,520 ) — 20,045 36,580 9,769 20,076 66,425 State 13,810 — — — 13,810 — — — — Total NMTC 339,833 (32,026 ) (127,520 ) (118,000 ) 62,287 53,070 16,349 43,026 112,445 Low-Income Housing 30,166 (5,979 ) — — 24,187 13,188 3,965 38,972 56,125 Historic Rehabilitation: Federal(4) 69,177 (55,220 ) — — 13,957 34,335 40,970 — 75,305 State 12,518 (4,363 ) — — 8,155 — — — — Total Historic Rehabilitation(5) 81,695 (59,583 ) — — 22,112 34,335 40,970 — 75,305 Total $ 451,694 $ (97,588 ) $ (127,520 ) $ (118,000 ) $ 108,586 $ 100,593 $ 61,284 $ 81,998 $ 243,875 (1) Amount represents impairment recorded from the date of original investment through the current period, as evaluated by the Company at the end of each reporting period. (2) Interest-only leverage loans made to the investment fund during the compliance period for Federal NMTC. This amount is recorded as an offset to the Federal NMTC investment due to the interest-only leverage loan being repaid at the end of the compliance period. (3) Through December 31, 2015 , FNBC CDE received allocations of Federal NMTC from the CDFI Fund of the U.S. Treasury totaling $118.0 million over a three year period beginning in 2011. These investments are eliminated upon consolidation by the Company. (4) As of December 31, 2015 , the Company had $10.9 million invested and $ 39.1 million in outstanding commitments in Federal Historic Rehabilitation tax credit projects which the Company expects to generate Federal Historic Rehabilitation tax credits in 2016, 2017 and 2018 when the projects are completed, receive the certificates of occupancy, and the property is placed into service. The amount of tax credits to be received will be determined when the costs are certified. (5) The total accumulated impairment includes $ 5.8 million in additional accrued impairment in 2015 which is owed to the project based on the investment payment terms. |
Schedule of Amortization of Credit Investments | The impairment of tax credit investments for the three and six month periods ended June 30, 2016 and 2015 were as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (In thousands) 2016 2015 2016 2015 (Restated) (Restated) Federal NMTC $ 3,850 $ 3,703 $ 7,700 $ 7,406 Federal Low-Income Housing 599 (765 ) 1,198 158 Federal and State Historic Rehabilitation 10,267 8,723 20,533 17,444 Total impairment $ 14,716 $ 11,661 $ 29,431 $ 25,008 |
Summary of Major Classifications of Loans | Major classifications of loans at June 30, 2016 and December 31, 2015 were as follows: (In thousands) June 30, 2016 December 31, 2015 Commercial real estate loans: Construction $ 548,563 $ 522,269 Mortgage(1) 1,642,719 1,423,545 2,191,282 1,945,814 Consumer real estate loans: Construction 16 9 Mortgage 234,787 264,422 234,803 264,431 Commercial and industrial loans 1,304,952 1,221,283 Loans to individuals, excluding real estate 28,139 21,688 Other loans 20,809 5,377 3,779,985 3,458,593 Less allowance for loan losses (76,964 ) (78,478 ) Loans, net $ 3,703,021 $ 3,380,115 (1) Included in commercial real estate loans, mortgage, are owner-occupied real estate loans of $502.1 million at June 30, 2016 and $449.1 million at December 31, 2015 . These loans were classified in the Company's loan portfolio at June 30, 2016 and December 31, 2015 as follows: (In thousands) June 30, 2016 December 31, 2015 Construction $ 59,110 $ 43,962 Commercial real estate 78,351 67,579 Commercial and industrial 145,201 117,389 Total loans $ 282,662 $ 228,930 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Short-Term Borrowings | The following is a summary of short-term borrowings at June 30, 2016 and December 31, 2015 : (In thousands) June 30, 2016 December 31, 2015 FHLB $ 7,022 $ 8,000 Total short-term borrowings $ 7,022 $ 8,000 |
Derivative - Interest Rate Sw29
Derivative - Interest Rate Swap Agreements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Swaps | A summary of the Company's interest rate-prime swaps as of June 30, 2016 is as follows: (In thousands) Notional Amount Fixed Rate Term Interest rate-prime swaps: Counterparty B: Prime plus 1% floored at 5% $ 100,000 6.010% September 2013 - September 2019 Prime plus 1% floored at 5.5% 80,000 6.260% September 2013 - September 2019 180,000 Counterparty C: Prime 30,000 4.500% December 2015 - September 2022 Prime plus 1% 40,000 5.490% December 2015 - September 2022 Prime plus 1% floored at 5% 40,000 5.810% March 2015 - March 2021 Prime plus 2% 15,000 6.560% March 2015 - March 2021 Prime plus 2% actual/365 10,000 6.560% March 2015 - March 2021 135,000 Total interest rate-prime swaps $ 315,000 A summary of the Company's interest rate swaps as of June 30, 2016 is as follows: (In thousands) Notional Amount Fixed Payment Rate Term Interest rate swaps: Counterparty B: Three-month LIBOR swap $ 150,000 4.165% December 2016 - September 2023 150,000 Counterparty C: Three-month LIBOR swap 55,000 2.652% January 2018 - October 2023 Three-month LIBOR swap 55,000 2.753% January 2019 - October 2024 Three-month LIBOR swap 55,000 2.793% July 2019 - April 2025 Three-month LIBOR swap 55,000 0.940% April 2016 - October 2017 Three-month LIBOR swap 55,000 1.060% April 2016 - October 2018 275,000 Total interest rate swaps $ 425,000 |
Schedule of Derivative Instruments | Information pertaining to outstanding derivative instruments is as follows: Derivative Assets Fair Value Derivative Liabilities Fair Value (In thousands) Balance Sheet Location June 30, 2016 December 31, 2015 Balance Sheet Location June 30, 2016 December 31, 2015 Derivatives designated as hedging instruments under ASC Topic 815: Interest rate swaps - Counterparty B Other Assets $ — $ — Other Liabilities $ 31,046 $ 20,613 Interest rate-prime swaps - Counterparty B Other Assets 5,172 3,815 Other Liabilities — — Interest rate swaps - Counterparty C Other Assets — — Other Liabilities 13,311 3,037 Interest rate-prime swaps - Counterparty C Other Assets 5,596 541 Other Liabilities — 406 $ 10,768 $ 4,356 $ 44,357 $ 24,056 |
Schedule of Derivative Assets Subject to Master Netting Arrangements | The Company entered into master netting arrangements with both Counterparty B and Counterparty C whereby the delayed interest rate swaps and hedges would be settled net. Net fair values of the Counterparty B and Counterparty C delayed interest rate swaps and hedges as of June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet (In thousands) Derivatives Collateral Net Derivatives subject to master netting arrangements: Derivative liabilities: Counterparty B $ 25,874 $ — $ — $ 25,874 Counterparty C 7,715 — — 7,715 Net derivative liability $ 33,589 $ — $ — $ 33,589 December 31, 2015 Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet (In thousands) Derivatives Collateral Net Derivatives subject to master netting arrangements: Derivative liabilities: Counterparty B $ 16,798 $ — $ — $ 16,798 Counterparty C 2,902 — — 2,902 Net derivative liability $ 19,700 $ — $ — $ 19,700 |
Schedule of Derivative Liabilities Subject to Master Netting Arrangements | The Company entered into master netting arrangements with both Counterparty B and Counterparty C whereby the delayed interest rate swaps and hedges would be settled net. Net fair values of the Counterparty B and Counterparty C delayed interest rate swaps and hedges as of June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet (In thousands) Derivatives Collateral Net Derivatives subject to master netting arrangements: Derivative liabilities: Counterparty B $ 25,874 $ — $ — $ 25,874 Counterparty C 7,715 — — 7,715 Net derivative liability $ 33,589 $ — $ — $ 33,589 December 31, 2015 Gross Amounts Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet (In thousands) Derivatives Collateral Net Derivatives subject to master netting arrangements: Derivative liabilities: Counterparty B $ 16,798 $ — $ — $ 16,798 Counterparty C 2,902 — — 2,902 Net derivative liability $ 19,700 $ — $ — $ 19,700 |
Schedule of Effect of Hedging Instruments | At June 30, 2016 and 2015 , and for the six months then ended, information pertaining to the effect of the hedging instruments on the consolidated financial statements is as follows: Amount of Gain (Loss) Recognized in OCI, net of taxes (Effective Portion) (In thousands) As of June 30, Derivatives in ASC Topic 815 Cash Flow Hedging Relationships: 2016 2015 Interest rate swap with Counterparty A $ (4,124 ) $ (4,844 ) Interest rate swap and prime swaps with Counterparty B (16,120 ) (7,592 ) Interest rate swap and prime swaps with Counterparty C (4,848 ) 944 Total $ (25,092 ) $ (11,492 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Benefit on Statement of Income | The income tax benefit on the statement of income for the three and six months ended June 30, 2016 and 2015 was as follows: For the Three Months Ended For the Six Months Ended (In thousands) 2016 2015 2016 2015 (Restated) (Restated) Current tax expense $ 293 $ 831 $ 1,134 $ 1,911 Deferred tax benefit (4,343 ) (19,427 ) (45,054 ) (35,191 ) Total tax benefit $ (4,050 ) $ (18,596 ) $ (43,920 ) $ (33,280 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Total Notional Amount of Loan Commitments and Standby Letters of Credit | The following is a summary of the total notional amount of loan commitments and standby letters of credit outstanding at June 30, 2016 and December 31, 2015 : (In thousands) June 30, 2016 December 31, 2015 Standby letters of credit $ 140,668 $ 106,232 Unused loan commitments 717,682 715,759 Total $ 858,350 $ 821,991 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) by component are presented in the following table: (In thousands) Cash Flow Terminated Cash Flow Hedges(2) Transfers of Available Total Balance at January 1, 2016 $ (12,806 ) $ (3,685 ) $ (2,926 ) $ (1,968 ) $ (21,385 ) Other comprehensive income (loss) before income taxes: Net change in unrealized gain (loss) (13,889 ) 263 — 7,102 (6,524 ) Reclassification of net losses realized and included in earnings — 394 — — 394 Amortization of unrealized net gain — — 303 — 303 Income tax expense (benefit) (4,769 ) 138 106 2,484 (2,041 ) Balance at June 30, 2016 $ (21,926 ) $ (3,166 ) $ (2,729 ) $ 2,650 $ (25,171 ) (In thousands) Cash Flow Hedges(1) Terminated Cash Flow Hedge(2) Transfers of Available for Sale Securities to Held to Maturity Available for Sale Securities Total Balance at January 1, 2015 $ (8,396 ) $ (5,194 ) $ (3,354 ) $ (2,793 ) $ (19,737 ) Other comprehensive income (loss) before income taxes: Net change in unrealized gain 2,690 — — 472 3,162 Reclassification of net losses realized and included in earnings — 539 — — 539 Amortization of unrealized net gain — — 288 — 288 Income tax expense (benefit) 942 189 101 165 1,397 Balance at June 30, 2015 $ (6,648 ) $ (4,844 ) $ (3,167 ) $ (2,486 ) $ (17,145 ) (1) Balances represent the net operating changes in all of the Company's cash flow hedge relationships as of the dates stated. (2) Balances represent the net unrealized gains (loss) at termination of a certain cash flow hedge, interest rate swap cash flow hedge, and interest rate-prime swap cash flow hedge relationships. See Note 9 for further explanation on the terminated cash flow hedges. |
Capital Requirements and Othe33
Capital Requirements and Other Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Banking and Thrift [Abstract] | |
Summary of Capital Amounts and Ratios | The following tables present the actual capital amounts and regulatory capital ratios for the Company and the Bank as of June 30, 2016 and December 31, 2015 : June 30, 2016 "Well Capitalized" Minimums Actual (In thousands) Ratio Amount First NBC Bank Holding Company Tier 1 leverage capital 5.97 % $ 281,298 Tier 1 risk-based capital 6.41 % 281,298 Total risk-based capital 9.03 % 396,079 Common equity tier 1 risk-based capital 6.41 % 281,298 First NBC Bank Tier 1 leverage capital 5.00 % 7.26 % $ 340,612 Tier 1 risk-based capital 8.00 % 7.78 % 340,612 Total risk-based capital 10.00 % 9.05 % 396,439 Common equity tier 1 risk-based capital 6.50 % 7.78 % 340,612 December 31, 2015 "Well Capitalized" Minimums Actual (In thousands) Ratio Amount First NBC Bank Holding Company Tier 1 leverage capital 6.03 % $ 265,191 Tier 1 risk-based capital 6.33 % 265,191 Total risk-based capital 9.04 % 378,815 Common equity tier 1 risk-based capital 6.33 % 265,191 First NBC Bank Tier 1 leverage capital 5.00 % 7.44 % $ 321,346 Tier 1 risk-based capital 8.00 % 7.68 % 321,346 Total risk-based capital 10.00 % 8.96 % 374,976 Common equity tier 1 risk-based capital 6.50 % 7.68 % 321,346 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value Measurements of Financial Assets and Liabilities on Recurring Basis | The Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy, based on the inputs used to determine the fair value at the measurement date in the tables below: June 30, 2016 Fair Value Measurement Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets ( Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Available for sale securities: U.S. government agency securities $ 149,449 $ — $ 149,449 $ — U.S. Treasury securities 13,128 — 13,128 — Municipal securities 12,127 — 12,127 — Mortgage-backed securities 118,507 — 118,507 — Corporate bonds 8,048 — 8,048 — Other equity securities 20 20 — — Total $ 301,279 $ 20 $ 301,259 $ — Liabilities Derivative instruments $ 33,589 $ — $ 33,589 $ — December 31, 2015 Fair Value Measurement Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets ( Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Available for sale securities: U.S. government agency securities $ 149,675 $ — $ 149,675 $ — U.S. Treasury securities 12,703 — 12,703 — Municipal securities 12,100 — 12,100 — Mortgage-backed securities 77,511 — 77,511 — Corporate bonds 7,823 — 7,823 — Other equity securities 20 20 — — Other debt securities 25,994 — 25,994 — Total $ 285,826 $ 20 $ 285,806 $ — Liabilities Derivative instruments $ 19,700 $ — $ 19,700 $ — |
Carrying Value and Fair Value Measurements of Financial Assets and Liabilities on Non Recurring Basis | The Company has segregated all financial assets and liabilities that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the tables below: June 30, 2016 Fair Value Measurement Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets ( Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Loans $ 147,957 $ — $ — $ 147,957 OREO 2,460 — — 2,460 Investment in tax credit entities 6,233 — — 6,233 $ 156,650 $ — $ — $ 156,650 December 31, 2015 Fair Value Measurement Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets ( Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Loans $ 134,755 $ — $ — $ 134,755 OREO 3,701 — — 3,701 Investment in tax credit entities 1,425 — — 1,425 $ 139,881 $ — $ — $ 139,881 |
Carrying Value and Fair Value Measurements of Financial Instruments | The estimated fair values of the Company’s financial instruments were as follows as of the dates indicated: Fair Value Measurements at June 30, 2016 (In thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 146,011 $ 146,011 $ 146,011 $ — $ — Investment securities available for sale 301,279 301,279 20 301,259 — Investment securities held to maturity 79,598 85,442 — 85,442 — Loans and loans held for sale 3,783,183 3,766,902 — — 3,766,902 Financial Liabilities: Deposits, noninterest-bearing 381,553 381,553 — 381,553 — Deposits, interest-bearing 3,550,471 3,543,587 — — 3,543,587 Repurchase agreements 85,757 85,757 — 85,757 — Short-term borrowings 7,022 7,027 — 7,027 — Long-term borrowings 355,130 360,921 — 360,921 — Derivative instruments 33,589 33,589 — 33,589 — Fair Value Measurements at December 31, 2015 (In thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 349,054 $ 349,054 $ 349,054 $ — $ — Investment in short-term receivables 25,604 25,604 25,604 — — Investment securities available for sale 285,826 285,826 20 285,806 — Investment securities held to maturity 82,074 82,799 — 82,799 — Loans and loans held for sale 3,466,268 3,444,920 — — 3,444,920 Financial Liabilities: Deposits, noninterest-bearing 368,421 368,421 — 368,421 — Deposits, interest-bearing 3,475,421 3,403,261 — — 3,403,261 Repurchase agreements 79,251 79,251 — 79,251 — Short-term borrowings 8,000 7,994 — 7,994 — Long-term borrowings 339,042 341,033 — 341,033 — Derivative instruments 19,700 19,700 — 19,700 — |
Basis of Presentation (Details)
Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Organization and Significant Accounting Policies [Line Items] | |
Tax credit carryforward period (years) | 20 years |
Tax credit as Percentage of project cost | 39.00% |
Minimum | |
Organization and Significant Accounting Policies [Line Items] | |
Interest at the end of compliance period (as a percent) | 0.00% |
Maximum | |
Organization and Significant Accounting Policies [Line Items] | |
Interest at the end of compliance period (as a percent) | 25.00% |
Low-Income Housing Credits | |
Organization and Significant Accounting Policies [Line Items] | |
Non voting interest (as a percent) | 99.99% |
Compliance period (years) | 15 years |
Interest percentage for general partners | 0.01% |
Low-Income Housing Credits | Minimum | |
Organization and Significant Accounting Policies [Line Items] | |
Federal Tax Credit, Adjustment Period (years) | 10 years |
Low-Income Housing Credits | Maximum | |
Organization and Significant Accounting Policies [Line Items] | |
Federal Tax Credit, Adjustment Period (years) | 15 years |
Federal NMTC | |
Organization and Significant Accounting Policies [Line Items] | |
Compliance period (years) | 7 years |
CDE fee (as a percent) | 4.00% |
Annual fee (as a percent) | 0.50% |
Federal NMTC | Minimum | |
Organization and Significant Accounting Policies [Line Items] | |
Federal Tax Credit, Adjustment Period (years) | 7 years |
Federal and State Historic Rehabilitation | |
Organization and Significant Accounting Policies [Line Items] | |
Non voting interest (as a percent) | 99.00% |
Compliance period (years) | 5 years |
Interest percentage for general partners | 1.00% |
First Three Years | |
Organization and Significant Accounting Policies [Line Items] | |
Tax credit as Percentage of project cost | 5.00% |
Next Four Years | |
Organization and Significant Accounting Policies [Line Items] | |
Tax credit as Percentage of project cost | 6.00% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands | Nov. 30, 2015USD ($)$ / shares | Jan. 16, 2015USD ($)facility | Dec. 31, 2015USD ($)acquisition | Jun. 30, 2016USD ($) |
First National Bank of Crestview and State-Investors Bank | ||||
Business Acquisition [Line Items] | ||||
Acquisition related costs | $ 1,200 | |||
Number of acquisitions | acquisition | 2 | |||
First National Bank of Crestview | ||||
Business Acquisition [Line Items] | ||||
Fair value of assets acquired, including identifiable intangible assets | $ 62,263 | $ 61,088 | ||
Number of banks acquired | facility | 3 | |||
Contingency, amount of settlement | $ 10,000 | |||
Goodwill | 1,191 | |||
Total consideration received | $ 10,035 | |||
State-Investors Bank | ||||
Business Acquisition [Line Items] | ||||
Fair value of assets acquired, including identifiable intangible assets | $ 254,627 | $ 254,080 | ||
Goodwill | $ 8,645 | |||
Per share price of common stock converted to cash (in dollars per share) | $ / shares | $ 21.51 | |||
Total consideration received | $ 48,744 |
Acquisitions - Consideration Tr
Acquisitions - Consideration Transferred (Details) - USD ($) $ in Thousands | Nov. 30, 2015 | Jan. 16, 2015 | Jun. 30, 2016 |
State-Investors Bank | |||
Business Acquisition [Line Items] | |||
Total consideration received | $ 48,744 | ||
Fair value of assets acquired, including identifiable intangible assets | 254,627 | $ 254,080 | |
Fair value of liabilities assumed | 211,868 | 213,981 | |
Goodwill | $ 8,645 | ||
First National Bank of Crestview | |||
Business Acquisition [Line Items] | |||
Total consideration received | $ 10,035 | ||
Fair value of assets acquired, including identifiable intangible assets | 62,263 | 61,088 | |
Fair value of liabilities assumed | 72,298 | $ 72,314 | |
Goodwill | $ 1,191 |
Acquisitions - Assets and Liabi
Acquisitions - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | 6 Months Ended | 7 Months Ended | 17 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Nov. 30, 2015 | Jan. 16, 2015 | |
First National Bank of Crestview | |||||
Assets | |||||
Cash and due from banks | $ 1,511 | $ 1,511 | $ 1,511 | $ 1,511 | |
Short-term investments | 19,971 | 19,971 | 19,971 | 19,971 | |
Investment securities-available for sale | 9,559 | 9,559 | 9,559 | 9,559 | |
Loans | 26,444 | 26,444 | 26,444 | 27,647 | |
Bank premises | 3,120 | 3,120 | 3,120 | 3,120 | |
Core deposit intangible | 188 | 188 | 188 | 0 | |
Other assets | 295 | 295 | 295 | 455 | |
Total Assets | 61,088 | 61,088 | 61,088 | 62,263 | |
Deposits: | |||||
Non-interest bearing | 22,680 | 22,680 | 22,680 | 22,680 | |
Interest bearing | 49,600 | 49,600 | 49,600 | 49,584 | |
Total deposits | 72,280 | 72,280 | 72,280 | 72,264 | |
Other liabilities | 34 | 34 | 34 | 34 | |
Total Liabilities | $ 72,314 | 72,314 | 72,314 | $ 72,298 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||
Cash and due from banks | 0 | ||||
Short-term investments | 0 | ||||
Investment securities-available for sale | 0 | ||||
Loans | (1,203) | ||||
Bank premises | 0 | ||||
Core deposit intangible | 188 | ||||
Other assets | (160) | ||||
Total Assets | (1,175) | ||||
Noninterest-bearing deposits | 0 | ||||
Interest bearing deposits | 16 | ||||
Total deposits | 16 | ||||
Other liabilities | 0 | ||||
Total Liabilities | 16 | ||||
Intangible assets, estimated useful life (in years) | 12 years | ||||
Amortization period for fair value adjustment of interest bearing deposit liabilities (in months) | 49 months | ||||
State-Investors Bank | |||||
Assets | |||||
Cash and due from banks | $ 20,031 | 20,031 | 20,031 | $ 20,031 | |
Short-term investments | 12,338 | 12,338 | 12,338 | 12,338 | |
Investment securities-available for sale | 27,195 | 27,195 | 27,195 | 27,388 | |
Loans | 179,419 | 179,419 | 179,419 | 182,249 | |
Bank premises | 8,300 | 8,300 | 8,300 | 7,708 | |
Deferred tax asset | 2,420 | 2,420 | 2,420 | 1,004 | |
Core deposit intangible | 468 | 468 | 468 | 0 | |
Other assets | 3,909 | 3,909 | 3,909 | 3,909 | |
Total Assets | 254,080 | 254,080 | 254,080 | 254,627 | |
Deposits: | |||||
Non-interest bearing | 11,416 | 11,416 | 11,416 | 11,416 | |
Interest bearing | 142,480 | 142,480 | 142,480 | 141,235 | |
Total deposits | 153,896 | 153,896 | 153,896 | 152,651 | |
Borrowings | 56,781 | 56,781 | 56,781 | 55,913 | |
Other liabilities | 3,304 | 3,304 | 3,304 | 3,304 | |
Total Liabilities | $ 213,981 | 213,981 | $ 213,981 | $ 211,868 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | |||||
Cash and due from banks | 0 | ||||
Short-term investments | 0 | ||||
Investment securities-available for sale | (193) | ||||
Loans | (2,830) | ||||
Bank premises | 592 | ||||
Deferred tax asset | 1,416 | ||||
Core deposit intangible | 468 | ||||
Other assets | 0 | ||||
Total Assets | (547) | ||||
Noninterest-bearing deposits | 0 | ||||
Interest bearing deposits | 1,245 | ||||
Total deposits | 1,245 | ||||
Borrowings | 868 | ||||
Other liabilities | 0 | ||||
Total Liabilities | $ 2,113 | ||||
Intangible assets, estimated useful life (in years) | 12 years |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic: Income available to common shareholders | $ 3,382 | $ 12,388 | $ 26,078 | $ 22,054 |
Weighted-average common shares outstanding | 19,105 | 18,620 | 19,096 | 18,611 |
Basic earnings per share (in usd per share) | $ 0.18 | $ 0.67 | $ 1.37 | $ 1.19 |
Diluted: Income available to common shareholders | $ 3,382 | $ 12,388 | $ 26,078 | $ 22,054 |
Weighted-average common shares outstanding | 19,105 | 18,620 | 19,096 | 18,611 |
Effect of dilutive securities: | ||||
Stock options outstanding (in shares) | 154 | 418 | 233 | 401 |
Restricted shares outstanding (in shares) | 0 | 3 | 0 | 2 |
Warrants (in shares) | 74 | 124 | 78 | 121 |
Weighted-average common shares outstanding – assuming dilution | 19,333 | 19,165 | 19,407 | 19,135 |
Diluted earnings per share (in usd per share) | $ 0.18 | $ 0.65 | $ 1.34 | $ 1.15 |
Restricted Stock | ||||
Effect of dilutive securities: | ||||
Antidilutive securities excluded from computation of EPS (in shares) | 51 | 34 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Market Values of Investment Securities with Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available for sale: | ||
Amortized Cost | $ 297,201 | $ 288,843 |
Gross Unrealized Gains | 4,393 | 996 |
Gross Unrealized Losses Less Than One Year | (274) | (2,806) |
Gross Unrealized Losses Greater Than One Year | (41) | (1,207) |
Estimated Market Value | 301,279 | 285,826 |
Held to maturity: | ||
Amortized Cost | 79,598 | 82,074 |
Gross Unrealized Gains | 5,862 | 2,562 |
Gross Unrealized Losses Less Than One Year | 0 | (196) |
Gross Unrealized Losses Greater Than One Year | (18) | (1,640) |
Estimated Market Value | 85,442 | 82,800 |
U.S. government agency securities | ||
Available for sale: | ||
Amortized Cost | 146,702 | 151,369 |
Gross Unrealized Gains | 2,747 | 552 |
Gross Unrealized Losses Less Than One Year | 0 | (1,591) |
Gross Unrealized Losses Greater Than One Year | 0 | (655) |
Estimated Market Value | 149,449 | 149,675 |
U.S. Treasury securities | ||
Available for sale: | ||
Amortized Cost | 13,014 | 13,015 |
Gross Unrealized Gains | 114 | 0 |
Gross Unrealized Losses Less Than One Year | 0 | 0 |
Gross Unrealized Losses Greater Than One Year | 0 | (312) |
Estimated Market Value | 13,128 | 12,703 |
Municipal securities | ||
Available for sale: | ||
Amortized Cost | 11,969 | 12,115 |
Gross Unrealized Gains | 158 | 76 |
Gross Unrealized Losses Less Than One Year | 0 | 0 |
Gross Unrealized Losses Greater Than One Year | 0 | (91) |
Estimated Market Value | 12,127 | 12,100 |
Held to maturity: | ||
Amortized Cost | 38,162 | 38,950 |
Gross Unrealized Gains | 2,588 | 1,888 |
Gross Unrealized Losses Less Than One Year | 0 | 0 |
Gross Unrealized Losses Greater Than One Year | 0 | (18) |
Estimated Market Value | 40,750 | 40,820 |
Mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 117,475 | 78,227 |
Gross Unrealized Gains | 1,347 | 367 |
Gross Unrealized Losses Less Than One Year | (274) | (934) |
Gross Unrealized Losses Greater Than One Year | (41) | (149) |
Estimated Market Value | 118,507 | 77,511 |
Held to maturity: | ||
Amortized Cost | 41,436 | 43,124 |
Gross Unrealized Gains | 3,274 | 674 |
Gross Unrealized Losses Less Than One Year | 0 | (196) |
Gross Unrealized Losses Greater Than One Year | (18) | (1,622) |
Estimated Market Value | 44,692 | 41,980 |
Corporate bonds | ||
Available for sale: | ||
Amortized Cost | 8,021 | 8,103 |
Gross Unrealized Gains | 27 | 0 |
Gross Unrealized Losses Less Than One Year | 0 | (280) |
Gross Unrealized Losses Greater Than One Year | 0 | 0 |
Estimated Market Value | 8,048 | 7,823 |
Other equity securities | ||
Available for sale: | ||
Amortized Cost | 20 | 20 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than One Year | 0 | 0 |
Gross Unrealized Losses Greater Than One Year | 0 | 0 |
Estimated Market Value | $ 20 | 20 |
Other debt securities | ||
Available for sale: | ||
Amortized Cost | 25,994 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses Less Than One Year | (1) | |
Gross Unrealized Losses Greater Than One Year | 0 | |
Estimated Market Value | $ 25,994 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($)security | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)security | |
Investments, Debt and Equity Securities [Abstract] | |||
Transfer of securities with fair value | $ 95.4 | ||
Accumulated other comprehensive loss included net pre-tax unrealized losses | $ 4.2 | $ 5.9 | |
Number of securities in loss position | security | 51 | 205 | |
Securities with estimated market values | $ 225.5 | $ 233.2 |
Investment Securities - Summa42
Investment Securities - Summary of Amortized Cost and Estimated Market Values by Contractual Maturity of Investment Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available for sale: | ||
Weighted average yield, Due in one year or less | 1.91% | 1.19% |
Weighted average yield, Due after one year through five years | 1.89% | 1.71% |
Weighted average yield, Due after five years through ten years | 2.44% | 1.88% |
Weighted average yield, Due after ten years | 2.44% | 2.29% |
Weighted average yield, Total securities | 2.00% | 1.77% |
Amortized Cost, Due in one year or less | $ 84,431 | $ 36,599 |
Amortized Cost, Due after one year through five years | 146,155 | 134,275 |
Amortized Cost, Due after five years through ten years | 54,069 | 105,950 |
Amortized Cost, Due after ten years | 12,546 | 12,019 |
Amortized Cost | 297,201 | 288,843 |
Estimated Market Value, Due in one year or less | 85,284 | 36,558 |
Estimated Market Value, Due after one year through five years | 148,084 | 133,485 |
Estimated Market Value, Due after five years through ten years | 55,341 | 104,184 |
Estimated Market Value, Due after ten years | 12,570 | 11,599 |
Estimated Market Value | $ 301,279 | $ 285,826 |
Held to maturity: | ||
Weighted average yield, Due in one year or less | 9.68% | 4.90% |
Weighted average yield, Due after one year through five years | 3.86% | 3.68% |
Weighted average yield, Due after five years through ten years | 3.18% | 3.25% |
Weighted average yield, Due after ten years | 3.67% | 3.44% |
Weighted average yield, Total securities | 3.74% | 3.57% |
Amortized Cost, Due in one year or less | $ 8,710 | $ 3,190 |
Amortized Cost, Due after one year through five years | 40,584 | 36,673 |
Amortized Cost, Due after five years through ten years | 10,423 | 14,416 |
Amortized Cost, Due after ten years | 19,881 | 27,795 |
Amortized Cost, Total securities | 79,598 | 82,074 |
Estimated Market Value, Due in one year or less | 8,892 | 3,068 |
Estimated Market Value, Due after one year through five years | 43,409 | 38,371 |
Estimated Market Value, Due after five years through ten years | 11,162 | 14,968 |
Estimated Market Value, Due after ten years | 21,979 | 26,393 |
Estimated Market Value | $ 85,442 | $ 82,800 |
Loans - Summary of Major Classi
Loans - Summary of Major Classifications of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Commercial real estate loans: | ||||||
Construction | $ 548,563 | $ 522,269 | ||||
Mortgage | 1,642,719 | 1,423,545 | ||||
Total commercial real estate loans | 2,191,282 | 1,945,814 | ||||
Consumer real estate loans: | ||||||
Construction | 16 | 9 | ||||
Mortgage | 234,787 | 264,422 | ||||
Total consumer real estate loans | 234,803 | 264,431 | ||||
Commercial and industrial loans | 1,304,952 | 1,221,283 | ||||
Loans to individuals, excluding real estate | 28,139 | 21,688 | ||||
Other loans | 20,809 | 5,377 | ||||
Total Loans | 3,779,985 | 3,458,593 | ||||
Less allowance for loan losses | (76,964) | $ (84,189) | (78,478) | $ (50,351) | $ (45,195) | $ (42,336) |
Loans, net | 3,703,021 | 3,380,115 | ||||
Owner Occupied Commercial Real Estate Loan | $ 502,100 | $ 449,100 |
Loans - Summary of Allowance fo
Loans - Summary of Allowance for Loan Losses and Recorded Investment in Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of period | $ 84,189 | $ 45,195 | $ 78,478 | $ 42,336 | |
Charge-offs | (880) | (698) | (9,937) | (905) | |
Recoveries | 20 | 254 | 40 | 320 | |
(Recovery) Provision | (6,365) | 5,600 | 8,383 | 8,600 | |
Balance, end of period | 76,964 | 50,351 | 76,964 | 50,351 | |
Individually evaluated for impairment | 26,080 | 26,080 | $ 46,693 | ||
Collectively evaluated for impairment | 50,884 | 50,884 | 31,785 | ||
Total | 76,964 | 76,964 | 78,478 | ||
Total Loans | 3,779,985 | 3,779,985 | 3,458,593 | ||
Loans receivable | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Individually evaluated for impairment | 171,856 | 171,856 | 156,751 | ||
Collectively evaluated for impairment | 3,608,129 | 3,608,129 | 3,301,842 | ||
Total Loans | 3,779,985 | 3,779,985 | 3,458,593 | ||
Construction | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of period | 6,706 | 4,733 | 5,027 | 4,030 | |
Charge-offs | (25) | (10) | (25) | (12) | |
Recoveries | 0 | 0 | 0 | 0 | |
(Recovery) Provision | (609) | 628 | 1,070 | 1,333 | |
Balance, end of period | 6,072 | 5,351 | 6,072 | 5,351 | |
Individually evaluated for impairment | 516 | 516 | 508 | ||
Collectively evaluated for impairment | 5,556 | 5,556 | 4,519 | ||
Total | 6,072 | 6,072 | 5,027 | ||
Total Loans | 548,579 | 548,579 | 522,278 | ||
Construction | Loans receivable | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Individually evaluated for impairment | 12,704 | 12,704 | 2,630 | ||
Collectively evaluated for impairment | 535,875 | 535,875 | 519,648 | ||
Total Loans | 548,579 | 548,579 | 522,278 | ||
Commercial Real Estate | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of period | 21,115 | 16,750 | 18,016 | 14,965 | |
Charge-offs | (300) | (501) | (496) | (530) | |
Recoveries | 9 | 243 | 13 | 243 | |
(Recovery) Provision | 6,260 | 327 | 9,551 | 2,141 | |
Balance, end of period | 27,084 | 16,819 | 27,084 | 16,819 | |
Individually evaluated for impairment | 4,722 | 4,722 | 5,674 | ||
Collectively evaluated for impairment | 22,362 | 22,362 | 12,342 | ||
Total | 27,084 | 27,084 | 18,016 | ||
Total Loans | 1,642,719 | 1,642,719 | 1,423,545 | ||
Commercial Real Estate | Loans receivable | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Individually evaluated for impairment | 25,554 | 25,554 | 30,007 | ||
Collectively evaluated for impairment | 1,617,165 | 1,617,165 | 1,393,538 | ||
Total Loans | 1,642,719 | 1,642,719 | 1,423,545 | ||
Consumer Real Estate | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of period | 5,293 | 3,316 | 3,500 | 3,316 | |
Charge-offs | (45) | (41) | (45) | (41) | |
Recoveries | 4 | 2 | 4 | 2 | |
(Recovery) Provision | (1,408) | 257 | 385 | 257 | |
Balance, end of period | 3,844 | 3,534 | 3,844 | 3,534 | |
Individually evaluated for impairment | 384 | 384 | 322 | ||
Collectively evaluated for impairment | 3,460 | 3,460 | 3,178 | ||
Total | 3,844 | 3,844 | 3,500 | ||
Total Loans | 234,787 | 234,787 | 264,422 | ||
Consumer Real Estate | Loans receivable | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Individually evaluated for impairment | 6,017 | 6,017 | 4,318 | ||
Collectively evaluated for impairment | 228,770 | 228,770 | 260,104 | ||
Total Loans | 234,787 | 234,787 | 264,422 | ||
Commercial and Industrial | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of period | 50,746 | 20,205 | 51,736 | 19,814 | |
Charge-offs | (505) | (122) | (9,364) | (272) | |
Recoveries | 2 | 5 | 14 | 66 | |
(Recovery) Provision | (10,627) | 4,388 | (2,770) | 4,868 | |
Balance, end of period | 39,616 | 24,476 | 39,616 | 24,476 | |
Individually evaluated for impairment | 20,433 | 20,433 | 40,176 | ||
Collectively evaluated for impairment | 19,183 | 19,183 | 11,560 | ||
Total | 39,616 | 39,616 | 51,736 | ||
Total Loans | 1,325,761 | 1,325,761 | 1,226,660 | ||
Commercial and Industrial | Loans receivable | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Individually evaluated for impairment | 127,311 | 127,311 | 119,652 | ||
Collectively evaluated for impairment | 1,198,450 | 1,198,450 | 1,107,008 | ||
Total Loans | 1,325,761 | 1,325,761 | 1,226,660 | ||
Consumer | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of period | 329 | 191 | 199 | 211 | |
Charge-offs | (5) | (24) | (7) | (50) | |
Recoveries | 5 | 4 | 9 | 9 | |
(Recovery) Provision | 19 | 0 | 147 | 1 | |
Balance, end of period | 348 | $ 171 | 348 | $ 171 | |
Individually evaluated for impairment | 25 | 25 | 13 | ||
Collectively evaluated for impairment | 323 | 323 | 186 | ||
Total | 348 | 348 | 199 | ||
Total Loans | 28,139 | 28,139 | 21,688 | ||
Consumer | Loans receivable | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Individually evaluated for impairment | 270 | 270 | 144 | ||
Collectively evaluated for impairment | 27,869 | 27,869 | 21,544 | ||
Total Loans | $ 28,139 | $ 28,139 | $ 21,688 |
Loans - Summary of Credit Quali
Loans - Summary of Credit Quality Indicators on Company's Loan Portfolio (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 3,779,985 | $ 3,458,593 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 548,579 | 522,278 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,642,719 | 1,423,545 |
Consumer Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 234,787 | 264,422 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,325,761 | 1,226,660 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 28,139 | 21,688 |
Pass and Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,370,625 | 3,082,864 |
Pass and Pass/Watch | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 451,226 | 444,713 |
Pass and Pass/Watch | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,546,679 | 1,325,513 |
Pass and Pass/Watch | Consumer Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 218,732 | 252,707 |
Pass and Pass/Watch | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,126,209 | 1,038,567 |
Pass and Pass/Watch | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 27,779 | 21,364 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 27,511 | 22,795 |
Special Mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Special Mention | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,216 | 15,230 |
Special Mention | Consumer Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,533 | 175 |
Special Mention | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,754 | 7,377 |
Special Mention | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8 | 13 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 362,525 | 333,609 |
Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 97,353 | 77,565 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 83,824 | 82,802 |
Substandard | Consumer Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,522 | 11,540 |
Substandard | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 170,474 | 161,391 |
Substandard | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 352 | 311 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,324 | 19,325 |
Doubtful | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Consumer Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,324 | 19,325 |
Doubtful | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Past Due Loans | $ 45,545,000 | $ 21,659,000 |
Average recorded investment in nonaccrual loan | 163,100,000 | 34,000,000 |
Amount of interest income | 4,400,000 | 1,800,000 |
Commitment to lend additional funds | 100,000 | 0 |
Receivables Acquired with Deteriorated Credit Quality | Substandard | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans acquired with deteriorated credit quality | 3,400,000 | 3,200,000 |
90 Days and Greater Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Past Due Loans | 32,525,000 | 12,219,000 |
90 Days and Greater Past Due | Secured Tuition Loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Past Due Loans | $ 0 | $ 100,000 |
Loans - Age Analysis of Past Du
Loans - Age Analysis of Past Due Loans Including Loans Acquired with Deteriorated Credit Quality (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | $ 45,545 | $ 21,659 |
Current Loans | 3,734,440 | 3,436,934 |
Total Loans | 3,779,985 | 3,458,593 |
Total real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 29,367 | 16,478 |
Current Loans | 2,396,718 | 2,193,767 |
Total Loans | 2,426,085 | 2,210,245 |
Total other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 16,178 | 5,181 |
Current Loans | 1,337,722 | 1,243,167 |
Total Loans | 1,353,900 | 1,248,348 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 12,031 | 1,411 |
Current Loans | 536,548 | 520,867 |
Total Loans | 548,579 | 522,278 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 9,052 | 6,922 |
Current Loans | 1,633,667 | 1,416,623 |
Total Loans | 1,642,719 | 1,423,545 |
Consumer Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 8,284 | 8,145 |
Current Loans | 226,503 | 256,277 |
Total Loans | 234,787 | 264,422 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 16,059 | 4,606 |
Current Loans | 1,309,702 | 1,222,054 |
Total Loans | 1,325,761 | 1,226,660 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 119 | 575 |
Current Loans | 28,020 | 21,113 |
Total Loans | 28,139 | 21,688 |
Greater Than 30 and Fewer Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 13,020 | 9,440 |
Greater Than 30 and Fewer Than 90 Days Past Due | Total real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 8,334 | 7,037 |
Greater Than 30 and Fewer Than 90 Days Past Due | Total other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 4,686 | 2,403 |
Greater Than 30 and Fewer Than 90 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 656 | 430 |
Greater Than 30 and Fewer Than 90 Days Past Due | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 3,941 | 979 |
Greater Than 30 and Fewer Than 90 Days Past Due | Consumer Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 3,737 | 5,628 |
Greater Than 30 and Fewer Than 90 Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 4,648 | 2,018 |
Greater Than 30 and Fewer Than 90 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 38 | 385 |
90 Days and Greater Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 32,525 | 12,219 |
90 Days and Greater Past Due | Total real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 21,033 | 9,441 |
90 Days and Greater Past Due | Total other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 11,492 | 2,778 |
90 Days and Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 11,375 | 981 |
90 Days and Greater Past Due | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 5,111 | 5,943 |
90 Days and Greater Past Due | Consumer Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 4,547 | 2,517 |
90 Days and Greater Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | 11,411 | 2,588 |
90 Days and Greater Past Due | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Past Due Loans | $ 81 | $ 190 |
Loans - Summary of Information
Loans - Summary of Information Pertaining to Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | $ 23,899 | $ 23,899 | $ 21,996 | ||
With no related allowance recorded, Contractual Balance | 28,470 | 28,470 | 22,671 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 147,957 | 147,957 | 134,755 | ||
With an allowance recorded, Contractual Balance | 156,586 | 156,586 | 135,147 | ||
With an allowance recorded, Related Allowance | 26,080 | 26,080 | 46,693 | ||
Total impaired loans, Recorded Investment | 171,856 | 171,856 | 156,751 | ||
Total impaired loans, Contractual Balance | 185,056 | 185,056 | 157,818 | ||
Total impaired loans, Related Allowance | 26,080 | 26,080 | 46,693 | ||
With no related allowance recorded, Average Recorded Investment | 23,524 | $ 14,262 | 22,948 | $ 8,302 | |
With no related allowance recorded, Interest Income Recognized | 6 | 32 | 27 | 35 | |
With an allowance recorded, Average Recorded Investment | 145,460 | 26,806 | 141,357 | 25,064 | |
With an allowance recorded, Interest Income Recognized | 303 | 60 | 398 | 64 | |
Total impaired loans, Average Recorded Investment | 168,984 | 41,068 | 164,305 | 33,366 | |
Total impaired loans, Interest Income Recognized | 309 | 92 | 425 | 99 | |
Construction | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 10,596 | 10,596 | 902 | ||
With no related allowance recorded, Contractual Balance | 10,609 | 10,609 | 915 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 2,108 | 2,108 | 1,728 | ||
With an allowance recorded, Contractual Balance | 2,122 | 2,122 | 1,755 | ||
With an allowance recorded, Related Allowance | 516 | 516 | 508 | ||
Total impaired loans, Recorded Investment | 12,704 | 12,704 | 2,630 | ||
Total impaired loans, Contractual Balance | 12,731 | 12,731 | 2,670 | ||
Total impaired loans, Related Allowance | 516 | 516 | 508 | ||
With no related allowance recorded, Average Recorded Investment | 10,352 | 883 | 5,749 | 891 | |
With no related allowance recorded, Interest Income Recognized | 0 | 18 | 0 | 18 | |
With an allowance recorded, Average Recorded Investment | 2,132 | 22 | 1,912 | 21 | |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 17 | 0 | |
Total impaired loans, Average Recorded Investment | 12,484 | 905 | 7,661 | 912 | |
Total impaired loans, Interest Income Recognized | 0 | 18 | 17 | 18 | |
Commercial Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 5,364 | 5,364 | 12,090 | ||
With no related allowance recorded, Contractual Balance | 6,830 | 6,830 | 12,424 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 20,190 | 20,190 | 17,917 | ||
With an allowance recorded, Contractual Balance | 20,853 | 20,853 | 17,982 | ||
With an allowance recorded, Related Allowance | 4,722 | 4,722 | 5,674 | ||
Total impaired loans, Recorded Investment | 25,554 | 25,554 | 30,007 | ||
Total impaired loans, Contractual Balance | 27,683 | 27,683 | 30,406 | ||
Total impaired loans, Related Allowance | 4,722 | 4,722 | 5,674 | ||
With no related allowance recorded, Average Recorded Investment | 5,683 | 3,402 | 8,727 | 4,529 | |
With no related allowance recorded, Interest Income Recognized | 0 | 14 | 20 | 14 | |
With an allowance recorded, Average Recorded Investment | 22,199 | 10,143 | 19,060 | 8,711 | |
With an allowance recorded, Interest Income Recognized | 6 | 60 | 75 | 60 | |
Total impaired loans, Average Recorded Investment | 27,882 | 13,545 | 27,787 | 13,240 | |
Total impaired loans, Interest Income Recognized | 6 | 74 | 95 | 74 | |
Consumer Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 3,814 | 3,814 | 2,802 | ||
With no related allowance recorded, Contractual Balance | 3,898 | 3,898 | 2,938 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 2,203 | 2,203 | 1,516 | ||
With an allowance recorded, Contractual Balance | 2,287 | 2,287 | 1,534 | ||
With an allowance recorded, Related Allowance | 384 | 384 | 322 | ||
Total impaired loans, Recorded Investment | 6,017 | 6,017 | 4,318 | ||
Total impaired loans, Contractual Balance | 6,185 | 6,185 | 4,472 | ||
Total impaired loans, Related Allowance | 384 | 384 | 322 | ||
With no related allowance recorded, Average Recorded Investment | 3,466 | 2,364 | 3,308 | 2,348 | |
With no related allowance recorded, Interest Income Recognized | 6 | 0 | 7 | 3 | |
With an allowance recorded, Average Recorded Investment | 2,214 | 318 | 1,860 | 292 | |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 7 | 0 | |
Total impaired loans, Average Recorded Investment | 5,680 | 2,682 | 5,168 | 2,640 | |
Total impaired loans, Interest Income Recognized | 6 | 0 | 14 | 3 | |
Commercial and Industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 3,958 | 3,958 | 6,072 | ||
With no related allowance recorded, Contractual Balance | 6,966 | 6,966 | 6,264 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 123,353 | 123,353 | 113,580 | ||
With an allowance recorded, Contractual Balance | 131,221 | 131,221 | 113,862 | ||
With an allowance recorded, Related Allowance | 20,433 | 20,433 | 40,176 | ||
Total impaired loans, Recorded Investment | 127,311 | 127,311 | 119,652 | ||
Total impaired loans, Contractual Balance | 138,187 | 138,187 | 120,126 | ||
Total impaired loans, Related Allowance | 20,433 | 20,433 | 40,176 | ||
With no related allowance recorded, Average Recorded Investment | 3,929 | 7,514 | 5,015 | 371 | |
With no related allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance recorded, Average Recorded Investment | 118,710 | 16,322 | 118,466 | 16,038 | |
With an allowance recorded, Interest Income Recognized | 297 | 0 | 299 | 4 | |
Total impaired loans, Average Recorded Investment | 122,639 | 23,836 | 123,481 | 16,409 | |
Total impaired loans, Interest Income Recognized | 297 | 0 | 299 | 4 | |
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
With no related allowance recorded, Recorded Investment | 167 | 167 | 130 | ||
With no related allowance recorded, Contractual Balance | 167 | 167 | 130 | ||
With no related allowance recorded, Related Allowance | 0 | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 103 | 103 | 14 | ||
With an allowance recorded, Contractual Balance | 103 | 103 | 14 | ||
With an allowance recorded, Related Allowance | 25 | 25 | 13 | ||
Total impaired loans, Recorded Investment | 270 | 270 | 144 | ||
Total impaired loans, Contractual Balance | 270 | 270 | 144 | ||
Total impaired loans, Related Allowance | 25 | 25 | $ 13 | ||
With no related allowance recorded, Average Recorded Investment | 94 | 99 | 149 | 163 | |
With no related allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance recorded, Average Recorded Investment | 205 | 1 | 59 | 2 | |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 | |
Total impaired loans, Average Recorded Investment | 299 | 100 | 208 | 165 | |
Total impaired loans, Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans - Summary of Nonaccrual L
Loans - Summary of Nonaccrual Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Loans Receivable [Line Items] | ||
Nonaccrual loans | $ 167,310 | $ 154,938 |
Nonaccrual Loans | Construction | ||
Loans Receivable [Line Items] | ||
Nonaccrual loans | 12,691 | 2,633 |
Nonaccrual Loans | Commercial Real Estate | ||
Loans Receivable [Line Items] | ||
Nonaccrual loans | 21,634 | 27,937 |
Nonaccrual Loans | Consumer Real Estate | ||
Loans Receivable [Line Items] | ||
Nonaccrual loans | 5,948 | 4,538 |
Nonaccrual Loans | Commercial and Industrial | ||
Loans Receivable [Line Items] | ||
Nonaccrual loans | 126,727 | 119,705 |
Nonaccrual Loans | Consumer | ||
Loans Receivable [Line Items] | ||
Nonaccrual loans | $ 310 | $ 125 |
Loans - Summary of Company's Tr
Loans - Summary of Company's Troubled Debt Restructurings ("TDRs") (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
Current | $ 2,850 | $ 3,283 |
Greater Than 30 Days Past Due | 0 | 0 |
Nonaccrual TDRs | 116,751 | 112,257 |
Total TDRs | 119,601 | 115,540 |
Total real estate loans | ||
Financing Receivable, Modifications [Line Items] | ||
Current | 2,403 | 2,801 |
Greater Than 30 Days Past Due | 0 | 0 |
Nonaccrual TDRs | 1,376 | 2,530 |
Total TDRs | 3,779 | 5,331 |
Total real estate loans | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Current | 0 | 1 |
Greater Than 30 Days Past Due | 0 | 0 |
Nonaccrual TDRs | 1,249 | 366 |
Total TDRs | 1,249 | 367 |
Total real estate loans | Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Current | 1,842 | 2,215 |
Greater Than 30 Days Past Due | 0 | 0 |
Nonaccrual TDRs | 0 | 1,393 |
Total TDRs | 1,842 | 3,608 |
Total real estate loans | Consumer Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Current | 561 | 585 |
Greater Than 30 Days Past Due | 0 | 0 |
Nonaccrual TDRs | 127 | 771 |
Total TDRs | 688 | 1,356 |
Total other loans | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Current | 447 | 482 |
Greater Than 30 Days Past Due | 0 | 0 |
Nonaccrual TDRs | 115,375 | 109,727 |
Total TDRs | $ 115,822 | $ 110,209 |
Loans - Modification of Trouble
Loans - Modification of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Receivables [Abstract] | ||
Maturity and interest rate adjustment | $ 0 | $ 0 |
Movement to, or extension of, interest rate-only payments | 6,324 | 0 |
Other concessions | 0 | 0 |
Total | $ 6,324 | $ 0 |
Loans - Summary of Informatio52
Loans - Summary of Information Pertaining to Modified Terms of Loans (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 21 | 41 |
Pre- Modification Outstanding Recorded Investment | $ 119,601 | $ 115,540 |
Post- Modification Outstanding Recorded Investment | $ 119,601 | $ 115,540 |
Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 3 |
Pre- Modification Outstanding Recorded Investment | $ 1,249 | $ 367 |
Post- Modification Outstanding Recorded Investment | $ 1,249 | $ 367 |
Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 3 |
Pre- Modification Outstanding Recorded Investment | $ 1,842 | $ 3,608 |
Post- Modification Outstanding Recorded Investment | $ 1,842 | $ 3,608 |
Consumer Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 5 |
Pre- Modification Outstanding Recorded Investment | $ 688 | $ 1,356 |
Post- Modification Outstanding Recorded Investment | $ 688 | $ 1,356 |
Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 18 | 30 |
Pre- Modification Outstanding Recorded Investment | $ 115,822 | $ 110,209 |
Post- Modification Outstanding Recorded Investment | $ 115,822 | $ 110,209 |
Investments in Tax Credit Ent53
Investments in Tax Credit Entities - Narrative (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)investment | Dec. 31, 2015USD ($) | |
Net Investment Income [Line Items] | ||
Tax credit as Percentage of project cost | 39.00% | |
Assets | $ 4,851,417 | $ 4,705,825 |
Cash and Due from Banks | 34,573 | 50,270 |
Loans Receivable, Net | 3,703,021 | 3,380,115 |
Other assets | 45,193 | 32,684 |
Liabilities | $ 4,446,301 | 4,325,074 |
Federal | ||
Net Investment Income [Line Items] | ||
Tax credit as Percentage of project cost | 39.00% | |
Period Of Credit Allowance | 7 years | |
Qualified Equity Investments | $ 118,000 | |
Federal | Maximum | ||
Net Investment Income [Line Items] | ||
Allocation Of Tax Credits Received | $ 46,000 | |
Federal | Due Between One Year And Three Years | ||
Net Investment Income [Line Items] | ||
Investment Credit Percentage Due | 5.00% | |
Federal | Due Between Year Four And Year Seven | ||
Net Investment Income [Line Items] | ||
Investment Credit Percentage Due | 6.00% | |
Federal NMTC | Federal | ||
Net Investment Income [Line Items] | ||
CDE investments in QEI projects located in low-income communities with poverty rates (as a percent) | 20.00% | |
CDE investments in QEI projects located in low-income communities with median family income (as a percent) | 80.00% | |
Allocation Of Tax Credits Received | $ 118,000 | $ 118,000 |
Amortization of tax credit investments | 46,000 | |
Bank Owned CDEs | Federal | ||
Net Investment Income [Line Items] | ||
Equity Method Investment, Aggregate Cost | 118,000 | |
Assets | 132,300 | |
Cash and Due from Banks | 7,300 | |
Loans Receivable, Net | 112,300 | |
Other assets | 12,700 | |
Liabilities | 500 | |
Capital | $ 131,800 | |
Community Development Fund | Federal | ||
Net Investment Income [Line Items] | ||
Qualified Equity Investment Percentage Of Proceeds | 85.00% | |
Low-Income Housing Credits | ||
Net Investment Income [Line Items] | ||
Number of investments consolidated | investment | 3 | |
Low-Income Housing Credits | Federal | ||
Net Investment Income [Line Items] | ||
Assets | $ 70,200 | |
Other assets | 800 | |
Liabilities | 5,500 | |
Capital | (25,400) | |
Parent Company | Bank Owned CDEs | Federal | ||
Net Investment Income [Line Items] | ||
Equity Method Investment, Aggregate Cost | 40,000 | |
Other Investors and Leverage Lenders | Bank Owned CDEs | Federal | ||
Net Investment Income [Line Items] | ||
Equity Method Investment, Aggregate Cost | 78,000 | |
Leverage Lender | Bank Owned CDEs | Federal | ||
Net Investment Income [Line Items] | ||
Equity Method Investment, Aggregate Cost | $ 17,500 | |
Low-Income Housing Credits | ||
Net Investment Income [Line Items] | ||
Compliance period (years) | 15 years | |
Low-Income Housing Credits | Minimum | ||
Net Investment Income [Line Items] | ||
Federal Tax Credit, Adjustment Period (years) | 10 years | |
Low-Income Housing Credits | Maximum | ||
Net Investment Income [Line Items] | ||
Federal Tax Credit, Adjustment Period (years) | 15 years | |
Federal and State Historic Rehabilitation | ||
Net Investment Income [Line Items] | ||
Compliance period (years) | 5 years |
Investments in Tax Credit Ent54
Investments in Tax Credit Entities - Schedule of Investments and Tax Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Net Investment Income [Line Items] | ||
Investment | $ 479,626 | $ 451,694 |
Total Impairment | (127,546) | (97,588) |
Loans to Investment Funds | (141,200) | (127,520) |
Elimination | (118,000) | (118,000) |
Net Investment | 92,880 | 108,586 |
Tax Benefits Recognized Through Prior Year | 161,877 | 100,593 |
Tax Benefits Expected to be Recognized in Current Year | 73,304 | 61,284 |
Tax Benefits Expected to be Recognized in Future Year and Thereafter | 67,875 | 81,998 |
Total Tax Benefits Earned and to be Recognized | 303,056 | 243,875 |
Low-Income Housing | ||
Net Investment Income [Line Items] | ||
Investment | 30,175 | 30,166 |
Total Impairment | (7,177) | (5,979) |
Loans to Investment Funds | 0 | 0 |
Elimination | 0 | 0 |
Net Investment | 22,998 | 24,187 |
Low Income Housing Tax Credits Benefits Recognized, Prior Year | 17,153 | 13,188 |
Low Income Housing Tax Credits Benefits Recognized, Current Year | 5,051 | 3,965 |
Low Income Housing Tax Credits Benefits Recognizable Year Two And After | 33,921 | 38,972 |
Total Tax Benefits Earned and to be Recognized | 56,125 | 56,125 |
Federal and State Historic Rehabilitation | ||
Net Investment Income [Line Items] | ||
Investment | 103,428 | 81,695 |
Total Impairment | (80,643) | (59,583) |
Loans to Investment Funds | 0 | 0 |
Elimination | 0 | 0 |
Net Investment | 22,785 | 22,112 |
Historic Rehabilitation Tax Credits Benefits Recognized, Prior Year | 75,305 | 34,335 |
Historic Rehabilitation Tax Credits Benefits Recognized, Current Year | 51,381 | 40,970 |
Historic Rehabilitation Tax Credits Benefits Recognizable Year Two And After | 0 | 0 |
Total Tax Benefits Earned and to be Recognized | 126,686 | 75,305 |
Accrued impairment owed to project | 500 | 5,800 |
Federal | ||
Net Investment Income [Line Items] | ||
Investment | 346,023 | 339,833 |
Total Impairment | (39,726) | (32,026) |
Loans to Investment Funds | (141,200) | (127,520) |
Elimination | (118,000) | (118,000) |
Net Investment | 47,097 | 62,287 |
Tax Benefits Recognized Through Prior Year | 69,419 | 53,070 |
Tax Benefits Expected to be Recognized in Current Year | 16,872 | 16,349 |
Tax Benefits Expected to be Recognized in Future Year and Thereafter | 33,954 | 43,026 |
Total Tax Benefits Earned and to be Recognized | 120,245 | 112,445 |
Federal | Bank Owned CDEs | ||
Net Investment Income [Line Items] | ||
Investment | 154,720 | 154,720 |
Total Impairment | (11,828) | (8,288) |
Loans to Investment Funds | 0 | 0 |
Elimination | (118,000) | (118,000) |
Net Investment | 24,892 | 28,432 |
Tax Benefits Recognized Through Prior Year | 23,070 | 16,490 |
Tax Benefits Expected to be Recognized in Current Year | 7,080 | 6,580 |
Tax Benefits Expected to be Recognized in Future Year and Thereafter | 15,870 | 22,950 |
Total Tax Benefits Earned and to be Recognized | 46,020 | 46,020 |
Federal | Non-Bank Owned CDEs | ||
Net Investment Income [Line Items] | ||
Investment | 191,303 | 171,303 |
Total Impairment | (27,898) | (23,738) |
Loans to Investment Funds | (141,200) | (127,520) |
Elimination | 0 | 0 |
Net Investment | 22,205 | 20,045 |
Tax Benefits Recognized Through Prior Year | 46,349 | 36,580 |
Tax Benefits Expected to be Recognized in Current Year | 9,792 | 9,769 |
Tax Benefits Expected to be Recognized in Future Year and Thereafter | 18,084 | 20,076 |
Total Tax Benefits Earned and to be Recognized | 74,225 | 66,425 |
Federal | Federal and State Historic Rehabilitation | ||
Net Investment Income [Line Items] | ||
Investment | 89,991 | 69,177 |
Total Impairment | (76,280) | (55,220) |
Loans to Investment Funds | 0 | 0 |
Elimination | 0 | 0 |
Net Investment | 13,711 | 13,957 |
Historic Rehabilitation Tax Credits Benefits Recognized, Prior Year | 75,305 | 34,335 |
Historic Rehabilitation Tax Credits Benefits Recognized, Current Year | 51,381 | 40,970 |
Historic Rehabilitation Tax Credits Benefits Recognizable Year Two And After | 0 | 0 |
Total Tax Benefits Earned and to be Recognized | 126,686 | 75,305 |
Federal | Federal NMTC | ||
Net Investment Income [Line Items] | ||
Allocation Of Tax Credits Received | 118,000 | 118,000 |
Federal | Federal Rehabilitation Tax Credit | ||
Net Investment Income [Line Items] | ||
Net Investment | 2,600 | 10,900 |
Outstanding commitments to invest in Federal Historic Rehabilitation tax credit projects | 23,000 | 39,100 |
State | ||
Net Investment Income [Line Items] | ||
Investment | 13,810 | |
Total Impairment | 0 | |
Loans to Investment Funds | 0 | |
Elimination | 0 | |
Net Investment | 13,810 | |
Tax Benefits Recognized Through Prior Year | 0 | |
Tax Benefits Expected to be Recognized in Current Year | 0 | |
Tax Benefits Expected to be Recognized in Future Year and Thereafter | 0 | |
Total Tax Benefits Earned and to be Recognized | 0 | |
State | State Rehabilitation Tax Credit | ||
Net Investment Income [Line Items] | ||
Investment | 13,437 | 12,518 |
Total Impairment | (4,363) | (4,363) |
Loans to Investment Funds | 0 | 0 |
Elimination | 0 | 0 |
Net Investment | 9,074 | 8,155 |
Historic Rehabilitation Tax Credits Benefits Recognized, Prior Year | 0 | 0 |
Historic Rehabilitation Tax Credits Benefits Recognized, Current Year | 0 | 0 |
Historic Rehabilitation Tax Credits Benefits Recognizable Year Two And After | 0 | 0 |
Total Tax Benefits Earned and to be Recognized | $ 0 | $ 0 |
Investments in Tax Credit Ent55
Investments in Tax Credit Entities - Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Investment Income [Line Items] | ||||
Impairment of tax credit investments | $ 14,716 | $ 11,661 | $ 29,431 | $ 25,008 |
Federal NMTC | ||||
Net Investment Income [Line Items] | ||||
Impairment of tax credit investments | 3,850 | 3,703 | 7,700 | 7,406 |
Federal Low-Income Housing | ||||
Net Investment Income [Line Items] | ||||
Impairment of tax credit investments | 599 | (765) | 1,198 | 158 |
Federal and State Historic Rehabilitation | ||||
Net Investment Income [Line Items] | ||||
Impairment of tax credit investments | $ 10,267 | $ 8,723 | $ 20,533 | $ 17,444 |
Investments in Tax Credit Ent56
Investments in Tax Credit Entities - Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Net Investment Income [Line Items] | ||
Loans Receivable, Real Estate | $ 282,662 | $ 228,930 |
Construction | ||
Net Investment Income [Line Items] | ||
Loans Receivable, Real Estate | 59,110 | 43,962 |
Commercial Real Estate | ||
Net Investment Income [Line Items] | ||
Loans Receivable, Real Estate | 78,351 | 67,579 |
Commercial and Industrial | ||
Net Investment Income [Line Items] | ||
Loans Receivable, Real Estate | $ 145,201 | $ 117,389 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Assets | $ 4,851,417 | $ 4,705,825 |
Real estate | 77,976 | 80,666 |
Other assets | 45,193 | 32,684 |
Liabilities | 4,446,301 | $ 4,325,074 |
Low-Income Housing Credits | Federal | ||
Variable Interest Entity [Line Items] | ||
Assets | 70,200 | |
Real estate | 69,400 | |
Other assets | 800 | |
Liabilities | 5,500 | |
Capital | $ (25,400) |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 7,022 | $ 8,000 |
FHLB | ||
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 7,022 | $ 8,000 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Thousands | Mar. 21, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||||
Weighted average interest rate on advances | 0.85% | |||
Short-term borrowings paid off | $ 2,000 | |||
Long-term borrowings | $ 295,130 | $ 279,042 | ||
State of Louisiana Office of Community Development | ||||
Short-term Debt [Line Items] | ||||
Long-term borrowings | $ 19,100 | |||
Stated interest rate | 1.00% |
Derivative - Interest Rate Sw60
Derivative - Interest Rate Swap Agreements - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
May 31, 2016USD ($)swap | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)swap | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)swap | Mar. 31, 2016USD ($)contract | Dec. 31, 2014contract | Dec. 31, 2014swap | Dec. 31, 2012USD ($) | |
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Unrealized gains (losses) on cash flow hedges, before tax | $ (5,287,000) | $ 6,736,000 | $ (13,232,000) | $ 3,229,000 | ||||||||
Amount of derivative will mature within next 12 months | 0 | 0 | ||||||||||
Interest rate swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Notional amount of derivative contract | 425,000,000 | 425,000,000 | ||||||||||
Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Notional amount of derivative contract | 315,000,000 | 315,000,000 | ||||||||||
Counterparty C | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Financial instruments owned and pledged as collateral | 6,200,000 | 6,200,000 | ||||||||||
Financial instruments owned and pledged as collateral at fair value | 6,700,000 | 6,700,000 | ||||||||||
Amounts of gains or losses have been reclassified from accumulated comprehensive income | 0 | 0 | 0 | 0 | ||||||||
Counterparty C | Interest Rate Swap, Fixed Interest Rate of 0.940% and 1.06% | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Number of interest rate swaps | contract | 2 | |||||||||||
Notional amount of derivative contract | $ 110,000,000 | |||||||||||
Counterparty C | Interest Rate Swap, Fixed Interest Rate of 0.940% | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Notional amount of derivative contract | $ 55,000,000 | $ 55,000,000 | $ 55,000,000 | |||||||||
Fixed Rate | 0.94% | 0.94% | 0.94% | |||||||||
Counterparty C | Interest Rate Swap, Fixed Interest Rate of 1.060% | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Notional amount of derivative contract | $ 55,000,000 | $ 55,000,000 | ||||||||||
Fixed Rate | 1.06% | 1.06% | 1.06% | |||||||||
Counterparty C | Interest rate swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Number of interest rate swaps | 3 | 3 | ||||||||||
Notional amount of derivative contract | $ 275,000,000 | $ 275,000,000 | $ 165,000,000 | |||||||||
Counterparty C | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Number of interest rate swaps | swap | 6 | |||||||||||
Notional amount of derivative contract | $ 10,000,000 | 135,000,000 | 135,000,000 | |||||||||
Unrealized gains (losses) on cash flow hedges, before tax | $ 300,000 | |||||||||||
Number of Interest Rate Derivatives Terminated | swap | 1 | |||||||||||
Counterparty C | Prime plus 1% | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | |||||||||||
Counterparty C | Prime plus 1% floored at 5% | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | |||||||||||
Debt instrument interest floored rate (as a percent) | 5.00% | |||||||||||
Counterparty C | Prime plus 2%, One | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate (as a percent) | 2.00% | |||||||||||
Counterparty C | Prime plus 2%, Two | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate (as a percent) | 2.00% | |||||||||||
Counterparty C | Prime plus 2.25% | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate (as a percent) | 2.25% | |||||||||||
Counterparty A | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Amounts of gains or losses have been reclassified from accumulated comprehensive income | 300,000 | 300,000 | 600,000 | 500,000 | ||||||||
Counterparty A | Interest rate swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Notional amount of derivative contract | $ 115,000,000 | |||||||||||
Unrealized gains (losses) on cash flow hedges, before tax | $ (8,000,000) | |||||||||||
Counterparty B | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Financial instruments owned and pledged as collateral | 28,700,000 | 28,700,000 | ||||||||||
Financial instruments owned and pledged as collateral at fair value | 29,700,000 | 29,700,000 | ||||||||||
Amounts of gains or losses have been reclassified from accumulated comprehensive income | 100,000 | $ 0 | 200,000 | $ 0 | ||||||||
Counterparty B | Interest rate swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Notional amount of derivative contract | 150,000,000 | 150,000,000 | $ 150,000,000 | |||||||||
Counterparty B | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Number of interest rate swaps | swap | 4 | |||||||||||
Notional amount of derivative contract | 180,000,000 | 180,000,000 | $ 70,000,000 | |||||||||
Unrealized gains (losses) on cash flow hedges, before tax | $ 1,300,000 | |||||||||||
Number of Interest Rate Derivatives Terminated | swap | 2 | |||||||||||
Counterparty B | Prime plus 1% | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | |||||||||||
Counterparty B | Prime plus 1% floored at 5% | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | |||||||||||
Debt instrument interest floored rate (as a percent) | 5.00% | |||||||||||
Counterparty B | Prime plus 1% floored at 5.5% | Interest rate-prime swaps | ||||||||||||
Interest Rate Derivatives Outstanding [Line Items] | ||||||||||||
Notional amount of derivative contract | $ 180,000,000 | $ 180,000,000 | ||||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | |||||||||||
Debt instrument interest floored rate (as a percent) | 5.50% |
Derivative - Interest Rate Sw61
Derivative - Interest Rate Swap Agreements - Summary of Interest Rate Swaps (Details) - USD ($) | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2013 |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 425,000,000 | |||
Counterparty B | Interest Rate Swap, Fixed Interest Rate of 4.165% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 150,000,000 | |||
Fixed Payment Rate | 4.165% | |||
Counterparty B | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 150,000,000 | $ 150,000,000 | ||
Counterparty C | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | 275,000,000 | $ 165,000,000 | ||
Counterparty C | Interest Rate Swap, Fixed Interest Rate of 2.652% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 55,000,000 | |||
Fixed Payment Rate | 2.652% | |||
Counterparty C | Interest Rate Swap, Fixed Interest Rate of 2.753% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 55,000,000 | |||
Fixed Payment Rate | 2.753% | |||
Counterparty C | Interest Rate Swap, Fixed Interest Rate of 2.793% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 55,000,000 | |||
Fixed Payment Rate | 2.793% | |||
Counterparty C | Interest Rate Swap, Fixed Interest Rate of 0.940% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 55,000,000 | $ 55,000,000 | ||
Fixed Payment Rate | 0.94% | 0.94% | ||
Counterparty C | Interest Rate Swap, Fixed Interest Rate of 1.060% | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 55,000,000 | |||
Fixed Payment Rate | 1.06% | 1.06% |
Derivative - Interest Rate Sw62
Derivative - Interest Rate Swap Agreements - Summary of Prime Swaps (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | May 31, 2016 | Dec. 31, 2015 | |
Interest rate-prime swaps | |||
Derivative [Line Items] | |||
Notional Amount | $ 315,000,000 | ||
Counterparty B | Prime Swap, Fixed Rate of 6.010% | |||
Derivative [Line Items] | |||
Notional Amount | $ 100,000,000 | ||
Fixed Rate | 6.01% | ||
Counterparty B | Prime Swap, Fixed Rate of 6.260% | |||
Derivative [Line Items] | |||
Notional Amount | $ 80,000,000 | ||
Fixed Rate | 6.26% | ||
Counterparty B | Interest rate-prime swaps | |||
Derivative [Line Items] | |||
Notional Amount | $ 180,000,000 | $ 70,000,000 | |
Counterparty C | Interest rate-prime swaps | |||
Derivative [Line Items] | |||
Notional Amount | 135,000,000 | $ 10,000,000 | |
Counterparty C | Prime Swap, Fixed Rate of 4.500% | |||
Derivative [Line Items] | |||
Notional Amount | $ 30,000,000 | ||
Fixed Rate | 4.50% | ||
Counterparty C | Prime Swap, Fixed Rate of 5.490% | |||
Derivative [Line Items] | |||
Notional Amount | $ 40,000,000 | ||
Fixed Rate | 5.49% | ||
Counterparty C | Prime Swap, Fixed Rate of 5.810% | |||
Derivative [Line Items] | |||
Notional Amount | $ 40,000,000 | ||
Fixed Rate | 5.81% | ||
Counterparty C | Prime Swap, Fixed Rate of 6.560%, Swap 1 | |||
Derivative [Line Items] | |||
Notional Amount | $ 15,000,000 | ||
Fixed Rate | 6.56% | ||
Counterparty C | Prime Swap, Fixed Rate of 6.560%, Swap 2 | |||
Derivative [Line Items] | |||
Notional Amount | $ 10,000,000 | ||
Fixed Rate | 6.56% | ||
Prime Rate | |||
Derivative [Line Items] | |||
Debt instrument interest floored rate (as a percent) | 5.00% | ||
Prime Rate | Counterparty B | Prime Swap, Fixed Rate of 6.010% | |||
Derivative [Line Items] | |||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | ||
Debt instrument interest floored rate (as a percent) | 5.00% | ||
Prime Rate | Counterparty B | Prime Swap, Fixed Rate of 6.260% | |||
Derivative [Line Items] | |||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | ||
Debt instrument interest floored rate (as a percent) | 5.50% | ||
Prime Rate | Counterparty C | Prime Swap, Fixed Rate of 5.490% | |||
Derivative [Line Items] | |||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | ||
Prime Rate | Counterparty C | Prime Swap, Fixed Rate of 5.810% | |||
Derivative [Line Items] | |||
Debt instrument basis spread on variable rate (as a percent) | 1.00% | ||
Prime Rate | Counterparty C | Prime Swap, Fixed Rate of 6.560%, Swap 1 | |||
Derivative [Line Items] | |||
Debt instrument basis spread on variable rate (as a percent) | 2.00% | ||
Prime Rate | Counterparty C | Prime Swap, Fixed Rate of 6.560%, Swap 2 | |||
Derivative [Line Items] | |||
Debt instrument basis spread on variable rate (as a percent) | 2.00% | ||
Prime Rate | Counterparty C | Prime Swap, Fixed Rate of 6.810% | |||
Derivative [Line Items] | |||
Debt instrument basis spread on variable rate (as a percent) | 2.25% |
Derivative - Interest Rate Sw63
Derivative - Interest Rate Swap Agreements - Derivative Instruments at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities Fair Value | $ 33,589 | $ 19,700 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets Fair Value | 10,768 | 4,356 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities Fair Value | 44,357 | 24,056 |
Counterparty B | Interest rate swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets Fair Value | 0 | 0 |
Counterparty B | Interest rate swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities Fair Value | 31,046 | 20,613 |
Counterparty B | Interest rate-prime swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets Fair Value | 5,172 | 3,815 |
Counterparty B | Interest rate-prime swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities Fair Value | 0 | 0 |
Counterparty C | Interest rate swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets Fair Value | 0 | 0 |
Counterparty C | Interest rate swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities Fair Value | 13,311 | 3,037 |
Counterparty C | Interest rate-prime swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets Fair Value | 5,596 | 541 |
Counterparty C | Interest rate-prime swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities Fair Value | $ 0 | $ 406 |
Derivative - Interest Rate Sw64
Derivative - Interest Rate Swap Agreements - Master Netting Arrangement (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative liabilities: | ||
Gross Amounts Presented in the Balance Sheet | $ 33,589 | $ 19,700 |
Gross Amounts Not Offset in the Balance Sheet, Derivatives | 0 | 0 |
Gross Amounts Not Offset in the Balance Sheet, Collateral | 0 | 0 |
Net | 33,589 | 19,700 |
Interest Rate Swap and Prime Swaps | Counterparty B | ||
Derivative liabilities: | ||
Gross Amounts Presented in the Balance Sheet | 25,874 | 16,798 |
Gross Amounts Not Offset in the Balance Sheet, Derivatives | 0 | 0 |
Gross Amounts Not Offset in the Balance Sheet, Collateral | 0 | 0 |
Net | 25,874 | 16,798 |
Interest Rate Swap and Prime Swaps | Counterparty C | ||
Derivative liabilities: | ||
Gross Amounts Presented in the Balance Sheet | 7,715 | 2,902 |
Gross Amounts Not Offset in the Balance Sheet, Derivatives | 0 | 0 |
Gross Amounts Not Offset in the Balance Sheet, Collateral | 0 | 0 |
Net | $ 7,715 | $ 2,902 |
Derivative - Interest Rate Sw65
Derivative - Interest Rate Swap Agreements - Effect of Hedging Instruments (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI, net of taxes (Effective Portion) | $ (25,092) | $ (11,492) |
Interest rate swaps | Counterparty A | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI, net of taxes (Effective Portion) | (4,124) | (4,844) |
Interest Rate Swap and Prime Swaps | Counterparty B | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI, net of taxes (Effective Portion) | (16,120) | (7,592) |
Interest Rate Swap and Prime Swaps | Counterparty C | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI, net of taxes (Effective Portion) | $ (4,848) | $ 944 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Benefit on Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Current tax expense | $ 293 | $ 831 | $ 1,134 | $ 1,911 | |
Deferred tax benefit | (4,343) | (19,427) | (45,054) | (35,191) | |
Total tax benefit | (4,050) | $ (18,596) | (43,920) | $ (33,280) | |
Deferred tax assets, valuation allowance | $ 1,600 | $ 1,600 | $ 1,500 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Total Notional Amount of Loan Commitments and Standby Letters of Credit (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for Losses on Unfunded Commitments | $ 300 | $ 300 |
Standby letters of credit | 140,668 | 106,232 |
Unused loan commitments | 717,682 | 715,759 |
Total | $ 858,350 | $ 821,991 |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ (21,385) | |||
Other comprehensive income (loss) before income taxes: | ||||
Reclassification of net losses realized and included in earnings | $ 193 | $ 273 | 394 | $ 539 |
Reclassification of net losses realized and included in earnings | 0 | 0 | 0 | 0 |
Income tax expense (benefit) | (1,164) | 1,256 | (2,041) | 1,397 |
Ending balance | (25,171) | (25,171) | ||
Cash Flow Hedges | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (12,806) | (8,396) | ||
Other comprehensive income (loss) before income taxes: | ||||
Net change in unrealized gain | (13,889) | 2,690 | ||
Reclassification of net losses realized and included in earnings | 0 | |||
Reclassification of net losses realized and included in earnings | 0 | |||
Amortization of unrealized net gain | 0 | 0 | ||
Income tax expense (benefit) | (4,769) | 942 | ||
Ending balance | (21,926) | (6,648) | (21,926) | (6,648) |
Terminated Cash Flow Hedge | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (3,685) | (5,194) | ||
Other comprehensive income (loss) before income taxes: | ||||
Net change in unrealized gain | 263 | 0 | ||
Reclassification of net losses realized and included in earnings | 394 | |||
Reclassification of net losses realized and included in earnings | 539 | |||
Amortization of unrealized net gain | 0 | 0 | ||
Income tax expense (benefit) | 138 | 189 | ||
Ending balance | (3,166) | (4,844) | (3,166) | (4,844) |
Transfers of Available for Sale Securities to Held to Maturity | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (2,926) | (3,354) | ||
Other comprehensive income (loss) before income taxes: | ||||
Net change in unrealized gain | 0 | 0 | ||
Reclassification of net losses realized and included in earnings | 0 | |||
Reclassification of net losses realized and included in earnings | 0 | |||
Amortization of unrealized net gain | 303 | 288 | ||
Income tax expense (benefit) | 106 | 101 | ||
Ending balance | (2,729) | (3,167) | (2,729) | (3,167) |
Available for Sale Securities | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (1,968) | (2,793) | ||
Other comprehensive income (loss) before income taxes: | ||||
Net change in unrealized gain | 7,102 | 472 | ||
Reclassification of net losses realized and included in earnings | 0 | |||
Reclassification of net losses realized and included in earnings | 0 | |||
Amortization of unrealized net gain | 0 | 0 | ||
Income tax expense (benefit) | 2,484 | 165 | ||
Ending balance | 2,650 | (2,486) | 2,650 | (2,486) |
Accumulated Other Comprehensive Income | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (21,385) | (19,737) | ||
Other comprehensive income (loss) before income taxes: | ||||
Net change in unrealized gain | (6,524) | 3,162 | ||
Reclassification of net losses realized and included in earnings | 394 | |||
Reclassification of net losses realized and included in earnings | 539 | |||
Amortization of unrealized net gain | 303 | 288 | ||
Income tax expense (benefit) | (2,041) | 1,397 | ||
Ending balance | $ (25,171) | $ (17,145) | $ (25,171) | $ (17,145) |
Capital Requirements and Othe69
Capital Requirements and Other Regulatory Matters (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
First NBC Bank Holding Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital, Actual, Ratio (as a percent) | 5.97% | 6.03% |
Tier 1 risk-based capital, Actual, Ratio (as a percent) | 6.41% | 6.33% |
Total risk-based capital, Actual, Ratio (as a percent) | 9.03% | 9.04% |
Common equity tier 1 risk-based capital, Actual, Ratio (as a percent) | 6.41% | 6.33% |
Tier 1 leverage capital, Actual, Amount | $ 281,298 | $ 265,191 |
Tier 1 risk-based capital, Actual, Amount | 281,298 | 265,191 |
Total risk-based capital, Actual, Amount | 396,079 | 378,815 |
Common equity tier 1 risk-based capital, Actual, Amount | $ 281,298 | $ 265,191 |
First NBC Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital, Actual, Ratio (as a percent) | 7.26% | 7.44% |
Tier 1 risk-based capital, Actual, Ratio (as a percent) | 7.78% | 7.68% |
Total risk-based capital, Actual, Ratio (as a percent) | 9.05% | 8.96% |
Common equity tier 1 risk-based capital, Actual, Ratio (as a percent) | 7.78% | 7.68% |
Tier 1 leverage capital, Actual, Amount | $ 340,612 | $ 321,346 |
Tier 1 risk-based capital, Actual, Amount | 340,612 | 321,346 |
Total risk-based capital, Actual, Amount | 396,439 | 374,976 |
Common equity tier 1 risk-based capital, Actual, Amount | $ 340,612 | $ 321,346 |
Tier 1 leverage capital, Well Capitalized Minimum (as a percent) | 5.00% | 5.00% |
Tier 1 risk-based capital, Well Capitalized Minimum (as a percent) | 8.00% | 8.00% |
Total risk-based capital, Well Capitalized Minimum (as a percent) | 10.00% | 10.00% |
Common equity tier 1 risk-based capital, Well Capitalized Minimum (as a percent) | 6.50% | 6.50% |
Fair Value of Financial Instr70
Fair Value of Financial Instruments - Carrying Value and Fair Value Measurements of Financial Assets and Liabilities on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available for sale: | ||
Investment securities available for sale | $ 301,279 | $ 285,826 |
U.S. government agency securities | ||
Available for sale: | ||
Investment securities available for sale | 149,449 | 149,675 |
U.S. Treasury securities | ||
Available for sale: | ||
Investment securities available for sale | 13,128 | 12,703 |
Municipal securities | ||
Available for sale: | ||
Investment securities available for sale | 12,127 | 12,100 |
Mortgage-backed securities | ||
Available for sale: | ||
Investment securities available for sale | 118,507 | 77,511 |
Corporate bonds | ||
Available for sale: | ||
Investment securities available for sale | 8,048 | 7,823 |
Other equity securities | ||
Available for sale: | ||
Investment securities available for sale | 20 | 20 |
Other debt securities | ||
Available for sale: | ||
Investment securities available for sale | 25,994 | |
Quoted Prices in Active Markets for Identical Assets ( Level 1) | ||
Available for sale: | ||
Investment securities available for sale | 20 | 20 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Available for sale: | ||
Investment securities available for sale | 301,259 | 285,806 |
Liabilities | ||
Derivative instruments | 33,589 | 19,700 |
Significant Unobservable Inputs (Level 3) | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Available for sale: | ||
Total | 301,279 | 285,826 |
Liabilities | ||
Derivative instruments | 33,589 | 19,700 |
Fair Value, Measurements, Recurring | U.S. government agency securities | ||
Available for sale: | ||
Investment securities available for sale | 149,449 | 149,675 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Available for sale: | ||
Investment securities available for sale | 13,128 | 12,703 |
Fair Value, Measurements, Recurring | Municipal securities | ||
Available for sale: | ||
Investment securities available for sale | 12,127 | 12,100 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Available for sale: | ||
Investment securities available for sale | 118,507 | 77,511 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Available for sale: | ||
Investment securities available for sale | 8,048 | 7,823 |
Fair Value, Measurements, Recurring | Other equity securities | ||
Available for sale: | ||
Investment securities available for sale | 20 | 20 |
Fair Value, Measurements, Recurring | Other debt securities | ||
Available for sale: | ||
Investment securities available for sale | 25,994 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets ( Level 1) | ||
Available for sale: | ||
Total | 20 | 20 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets ( Level 1) | U.S. government agency securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets ( Level 1) | U.S. Treasury securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets ( Level 1) | Municipal securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets ( Level 1) | Mortgage-backed securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets ( Level 1) | Corporate bonds | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets ( Level 1) | Other equity securities | ||
Available for sale: | ||
Investment securities available for sale | 20 | 20 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets ( Level 1) | Other debt securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Available for sale: | ||
Total | 301,259 | 285,806 |
Liabilities | ||
Derivative instruments | 33,589 | 19,700 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency securities | ||
Available for sale: | ||
Investment securities available for sale | 149,449 | 149,675 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Available for sale: | ||
Investment securities available for sale | 13,128 | 12,703 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Available for sale: | ||
Investment securities available for sale | 12,127 | 12,100 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Available for sale: | ||
Investment securities available for sale | 118,507 | 77,511 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Available for sale: | ||
Investment securities available for sale | 8,048 | 7,823 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other equity securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other debt securities | ||
Available for sale: | ||
Investment securities available for sale | 25,994 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Available for sale: | ||
Total | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. government agency securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Available for sale: | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other equity securities | ||
Available for sale: | ||
Investment securities available for sale | $ 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other debt securities | ||
Available for sale: | ||
Investment securities available for sale | $ 0 |
Fair Value of Financial Instr71
Fair Value of Financial Instruments - Carrying Value and Fair Value Measurements of Financial Assets and Liabilities on Non Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Loans | $ 147,957 | $ 134,755 |
OREO | 2,460 | 3,701 |
Investment in tax credit entities | 6,233 | 1,425 |
Total | 156,650 | 139,881 |
Quoted Prices in Active Markets for Identical Assets ( Level 1) | ||
Assets | ||
Loans | 0 | 0 |
OREO | 0 | 0 |
Investment in tax credit entities | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Loans | 0 | 0 |
OREO | 0 | 0 |
Investment in tax credit entities | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Loans | 147,957 | 134,755 |
OREO | 2,460 | 3,701 |
Investment in tax credit entities | 6,233 | 1,425 |
Total | $ 156,650 | $ 139,881 |
Fair Value of Financial Instr72
Fair Value of Financial Instruments - Carrying Value and Fair Value Measurements of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Assets: | ||
Noninterest-bearing | $ 34,573 | $ 50,270 |
Investment in short-term receivables | 0 | 25,604 |
Investment securities available for sale | 301,279 | 285,826 |
Investment securities held to maturity | 85,442 | 82,800 |
Loans and loans held for sale | 3,198 | 2,597 |
Financial Liabilities: | ||
Deposits, noninterest-bearing | 381,553 | 368,421 |
Deposits, interest-bearing | 3,550,471 | 3,475,421 |
Repurchase agreements | 85,757 | 79,251 |
Short-term borrowings | 7,022 | 8,000 |
Long-term borrowings | 295,130 | 279,042 |
Quoted Prices in Active Markets for Identical Assets ( Level 1) | ||
Financial Assets: | ||
Noninterest-bearing | 146,011 | 349,054 |
Investment in short-term receivables | 25,604 | |
Investment securities available for sale | 20 | 20 |
Investment securities held to maturity | 0 | 0 |
Loans and loans held for sale | 0 | 0 |
Financial Liabilities: | ||
Deposits, noninterest-bearing | 0 | 0 |
Deposits, interest-bearing | 0 | 0 |
Repurchase agreements | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Derivative instruments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial Assets: | ||
Noninterest-bearing | 0 | 0 |
Investment in short-term receivables | 0 | |
Investment securities available for sale | 301,259 | 285,806 |
Investment securities held to maturity | 85,442 | 82,799 |
Loans and loans held for sale | 0 | 0 |
Financial Liabilities: | ||
Deposits, noninterest-bearing | 381,553 | 368,421 |
Deposits, interest-bearing | 0 | 0 |
Repurchase agreements | 85,757 | 79,251 |
Short-term borrowings | 7,027 | 7,994 |
Long-term borrowings | 360,921 | 341,033 |
Derivative instruments | 33,589 | 19,700 |
Significant Unobservable Inputs (Level 3) | ||
Financial Assets: | ||
Noninterest-bearing | 0 | 0 |
Investment in short-term receivables | 0 | |
Investment securities available for sale | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Loans and loans held for sale | 3,766,902 | 3,444,920 |
Financial Liabilities: | ||
Deposits, noninterest-bearing | 0 | 0 |
Deposits, interest-bearing | 3,543,587 | 3,403,261 |
Repurchase agreements | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Derivative instruments | 0 | 0 |
Carrying Amount | ||
Financial Assets: | ||
Noninterest-bearing | 146,011 | 349,054 |
Investment in short-term receivables | 25,604 | |
Investment securities available for sale | 301,279 | 285,826 |
Investment securities held to maturity | 79,598 | 82,074 |
Loans and loans held for sale | 3,783,183 | 3,466,268 |
Financial Liabilities: | ||
Deposits, noninterest-bearing | 381,553 | 368,421 |
Deposits, interest-bearing | 3,550,471 | 3,475,421 |
Repurchase agreements | 85,757 | 79,251 |
Short-term borrowings | 7,022 | 8,000 |
Long-term borrowings | 355,130 | 339,042 |
Derivative instruments | 33,589 | 19,700 |
Total Fair Value | ||
Financial Assets: | ||
Noninterest-bearing | 146,011 | 349,054 |
Investment in short-term receivables | 25,604 | |
Investment securities available for sale | 301,279 | 285,826 |
Investment securities held to maturity | 85,442 | 82,799 |
Loans and loans held for sale | 3,766,902 | 3,444,920 |
Financial Liabilities: | ||
Deposits, noninterest-bearing | 381,553 | 368,421 |
Deposits, interest-bearing | 3,543,587 | 3,403,261 |
Repurchase agreements | 85,757 | 79,251 |
Short-term borrowings | 7,027 | 7,994 |
Long-term borrowings | 360,921 | 341,033 |
Derivative instruments | $ 33,589 | $ 19,700 |