Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 27, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'First Business Financial Services, Inc. | ' | ' |
Entity Central Index Key | '0001521951 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $117.40 |
Entity Common Stock, Shares Outstanding | ' | 3,944,795 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $13,219 | $21,626 |
Short-term investments | 68,067 | 63,960 |
Cash and cash equivalents | 81,286 | 85,586 |
Securities available-for-sale, at fair value | 180,118 | 200,596 |
Loans and leases receivable, net of allowance for loan and lease losses of $13,901 and $15,400, respectively | 967,050 | 896,560 |
Leasehold improvements and equipment, net | 1,155 | 968 |
Foreclosed properties | 333 | 1,574 |
Cash surrender value of bank-owned life insurance | 23,142 | 22,272 |
Investment in Federal Home Loan Bank stock, at cost | 1,255 | 1,144 |
Accrued interest receivable and other assets | 14,316 | 17,408 |
Total assets | 1,268,655 | 1,226,108 |
Liabilities and Stockholders’ Equity | ' | ' |
Deposits | 1,129,855 | 1,092,254 |
Federal Home Loan Bank and other borrowings | 11,936 | 12,405 |
Junior subordinated notes | 10,315 | 10,315 |
Accrued interest payable and other liabilities | 7,274 | 11,595 |
Total liabilities | 1,159,380 | 1,126,569 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.01 par value, 2,500,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 25,000,000 shares authorized, 4,106,084 and 4,011,370 shares issued, 3,943,997 and 3,916,667 shares outstanding at December 31, 2013 and 2012, respectively | 41 | 40 |
Additional paid-in capital | 56,002 | 53,504 |
Retained earnings | 57,143 | 45,599 |
Accumulated other comprehensive (loss) income | -342 | 2,183 |
Treasury stock (162,087 and 94,703 shares at December 31, 2013 and 2012, respectively), at cost | -3,569 | -1,787 |
Total stockholders’ equity | 109,275 | 99,539 |
Total liabilities and stockholders’ equity | $1,268,655 | $1,226,108 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets - Parenthetical [Abstract] | ' | ' |
Allowance for loan and lease losses | $13,901 | $15,400 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 4,106,084 | 4,011,370 |
Common stock, shares outstanding | 3,943,997 | 3,916,667 |
Treasury stock, shares | 162,087 | 94,703 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income | ' | ' |
Loans and leases | $50,238 | $51,125 |
Securities income | 3,315 | 3,417 |
Short-term investments | 257 | 224 |
Total interest income | 53,810 | 54,766 |
Interest expense | ' | ' |
Deposits | 9,739 | 13,026 |
Notes payable and other borrowings | 855 | 2,744 |
Junior subordinated notes | 1,111 | 1,115 |
Total interest expense | 11,705 | 16,885 |
Net interest income | 42,105 | 37,881 |
Provision for loan and lease losses | -959 | 4,243 |
Net interest income after provision for loan and lease losses | 43,064 | 33,638 |
Non-interest income | ' | ' |
Trust and investment services fee income | 3,756 | 2,927 |
Service charges on deposits | 2,150 | 2,028 |
Loan fees | 1,295 | 2,026 |
Increase in cash surrender value of bank-owned life insurance | 845 | 703 |
Credit, merchant and debit card fees | 121 | 204 |
Other | 275 | 811 |
Total non-interest income | 8,442 | 8,699 |
Non-interest expense | ' | ' |
Compensation | 18,278 | 17,018 |
Occupancy | 1,268 | 1,270 |
Professional fees | 1,968 | 1,634 |
Data processing | 1,500 | 1,319 |
Marketing | 1,355 | 1,224 |
Equipment | 528 | 490 |
FDIC insurance | 741 | 1,732 |
Collateral liquidation costs | 196 | 655 |
Net (gain) loss on foreclosed properties | -117 | 585 |
Other | 4,654 | 2,734 |
Total non-interest expense | 30,371 | 28,661 |
Income before income tax expense | 21,135 | 13,676 |
Income tax expense | 7,389 | 4,750 |
Net income | $13,746 | $8,926 |
Earnings per common share: | ' | ' |
Basic | $3.50 | $3.30 |
Diluted | $3.49 | $3.29 |
Dividends declared per share | $0.56 | $0.28 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $13,746 | $8,926 |
Other comprehensive loss, before tax | ' | ' |
Unrealized securities losses arising during the period | -4,092 | -503 |
Income tax benefit | 1,567 | 195 |
Comprehensive income | $11,221 | $8,618 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock |
In Thousands, except Share data | ||||||
Beginning balance at Dec. 31, 2011 | $64,214 | $27 | $25,843 | $37,501 | $2,491 | ($1,648) |
Common stock, shares outstanding at Dec. 31, 2011 | ' | 2,625,569 | ' | ' | ' | ' |
Net income | 8,926 | ' | ' | 8,926 | ' | ' |
Other comprehensive loss | -308 | ' | ' | ' | -308 | ' |
Issuance of common stock, shares | 1,265,000 | 1,265,000 | ' | ' | ' | ' |
Issuance of common stock | 27,074 | 13 | 27,061 | ' | ' | ' |
Exercise of stock options, shares | 1,000 | 1,000 | ' | ' | ' | ' |
Exercise of stock options | 22 | 0 | 22 | ' | ' | ' |
Share-based compensation - restricted shares, shares | ' | 30,385 | ' | ' | ' | ' |
Share-based compensation - restricted shares | 548 | ' | 548 | ' | ' | ' |
Share-based compensation - tax benefits | 107 | ' | 107 | ' | ' | ' |
Cash dividends ($0.28 per share during 2012 and $0.56 per share during 2013) | -828 | ' | ' | -828 | ' | ' |
Treasury stock purchased, shares | ' | -9,445 | ' | ' | ' | ' |
Treasury stock purchased | -216 | ' | ' | ' | ' | -216 |
Treasury stock re-issued, shares | ' | 4,158 | ' | ' | ' | ' |
Treasury stock re-issued | 0 | ' | -77 | ' | ' | 77 |
Ending balance at Dec. 31, 2012 | 99,539 | 40 | 53,504 | 45,599 | 2,183 | -1,787 |
Common stock, shares outstanding at Dec. 31, 2012 | 3,916,667 | 3,916,667 | ' | ' | ' | ' |
Net income | 13,746 | ' | ' | 13,746 | ' | ' |
Other comprehensive loss | -2,525 | ' | ' | ' | -2,525 | ' |
Exercise of stock options, shares | 69,684 | 69,684 | ' | ' | ' | ' |
Exercise of stock options | 1,474 | 1 | 1,473 | ' | ' | ' |
Share-based compensation - restricted shares, shares | ' | 25,030 | ' | ' | ' | ' |
Share-based compensation - restricted shares | 660 | ' | 660 | ' | ' | ' |
Share-based compensation - tax benefits | 365 | ' | 365 | ' | ' | ' |
Cash dividends ($0.28 per share during 2012 and $0.56 per share during 2013) | -2,202 | ' | ' | -2,202 | ' | ' |
Treasury stock purchased, shares | ' | -67,384 | ' | ' | ' | ' |
Treasury stock purchased | -1,782 | ' | ' | ' | ' | -1,782 |
Ending balance at Dec. 31, 2013 | $109,275 | $41 | $56,002 | $57,143 | ($342) | ($3,569) |
Common stock, shares outstanding at Dec. 31, 2013 | 3,943,997 | 3,943,997 | ' | ' | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Common stock, cash dividends, per share, declared | $0.56 | $0.28 |
Retained earnings | ' | ' |
Common stock, cash dividends, per share, declared | $0.56 | $0.28 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | ' | ' |
Net income | $13,746 | $8,926 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Deferred income taxes, net | 2,428 | -1,906 |
Provision for loan and lease losses | -959 | 4,243 |
Depreciation, amortization and accretion, net | 2,322 | 3,054 |
Share-based compensation | 660 | 548 |
Increase in cash surrender value of bank-owned life insurance | -845 | -703 |
Origination of loans for sale | 0 | -1,548 |
Sale of loans originated for sale | 0 | 1,695 |
Gain on sale of loans originated for sale | 0 | -147 |
Net (gain) loss on foreclosed properties, including impairment valuation | -117 | 585 |
Excess tax benefit from share-based compensation | -365 | -107 |
Decrease in accrued interest receivable and other assets | 2,713 | 646 |
(Decrease) increase in accrued interest payable and other liabilities | -3,681 | 712 |
Net cash provided by (used in) operating activities | 15,902 | 15,998 |
Investing activities | ' | ' |
Proceeds from maturities of available-for-sale securities | 62,520 | 56,992 |
Purchases of available-for-sale securities | -48,048 | -90,407 |
Proceeds from sale of foreclosed properties | 2,739 | 1,955 |
Payments to priority lien holders of foreclosed properties | 0 | -367 |
Net increase in loans and leases | -70,912 | -65,628 |
Investments in limited partnerships | -1,250 | 0 |
Distributions from limited partnerships | 672 | 893 |
Investment in FHLB Stock | -1,185 | 0 |
Proceeds from sale of FHLB Stock | 1,074 | 1,223 |
Purchases of leasehold improvements and equipment, net | -531 | -561 |
Proceeds from sale of leasehold improvements and equipment, net | 30 | 0 |
Premium payment on bank owned life insurance policies | -25 | -4,025 |
Proceeds from surrender of bank owned life insurance policies | 0 | 116 |
Net cash (used in) provided by investing activities | -54,916 | -99,809 |
Financing activities | ' | ' |
Net increase in deposits | 37,601 | 40,942 |
Repayment of FHLB advances | -469 | -13 |
Net decrease in short-term borrowed funds | 0 | -800 |
Proceeds from issuance of subordinated notes payable | 0 | 6,215 |
Repayment of subordinated notes payable | 0 | -33,289 |
Excess tax benefit from share-based compensation | 365 | 107 |
Common stock issuance | 0 | 27,074 |
Cash dividends paid | -2,475 | -738 |
Exercise of stock options | 1,474 | 22 |
Purchase of treasury stock | -1,782 | -216 |
Net cash provided by (used in) financing activities | 34,714 | 39,304 |
Net (decrease) increase in cash and cash equivalents | -4,300 | -44,507 |
Cash and cash equivalents at the beginning of the period | 85,586 | 130,093 |
Cash and cash equivalents at the end of the period | 81,286 | 85,586 |
Supplementary cash flow information | ' | ' |
Interest paid on deposits and borrowings | 12,365 | 17,800 |
Income taxes paid | 6,089 | 5,716 |
Transfer to foreclosed properties | 1,381 | 1,511 |
Reissuance of treasury stock | $0 | $77 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Operations and Summary of Significant Accounting Policies | ' |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations. The accounting and reporting practices of First Business Financial Services, Inc. (the “Corporation”), its wholly-owned subsidiaries, First Business Bank (“FBB”) and First Business Bank – Milwaukee (“FBB – Milwaukee”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). FBB and FBB – Milwaukee are sometimes referred to together as the “Banks.” FBB operates as a commercial banking institution in the Madison, Wisconsin market, consisting primarily of Dane County and the surrounding areas, with loan production offices in Oshkosh, Appleton, and Green Bay, Wisconsin. FBB also offers trust and investment services through First Business Trust & Investments (“FBTI”), a division of FBB. FBB – Milwaukee operates as a commercial banking institution in the Milwaukee, Wisconsin market, consisting primarily of Waukesha County and the surrounding areas. The Banks provide a full range of financial services to businesses, business owners, executives, professionals and high net worth individuals. The Banks are subject to competition from other financial institutions and service providers and are also subject to state and federal regulations. FBB has the following wholly-owned subsidiaries: First Business Capital Corp. (“FBCC”), First Madison Investment Corp. (“FMIC”), First Business Equipment Finance, LLC (“FBEF”) and FBB Real Estate, LLC (“FBBRE”). FMIC is located in and was formed under the laws of the state of Nevada. FBB-Milwaukee has one subsidiary, FBB – Milwaukee Real Estate, LLC (“FBBMRE”). | |
Basis of Financial Statement Presentation. The Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 810, the Corporation’s ownership interest in FBFS Statutory Trust II (“Trust II”) has not been consolidated into the financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Management of the Corporation is required 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 as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could experience significant changes in the near-term include the value of foreclosed property, lease residuals, property under operating leases, securities, income taxes and the level of the allowance for loan and lease losses. Certain amounts in prior periods may have been reclassified to conform to current presentation. Subsequent events have been evaluated through the issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. | |
Cash and Cash Equivalents. The Corporation considers federal funds sold, interest-bearing deposits and short-term investments that have original maturities of three months or less to be cash equivalents. | |
Securities Available-for-Sale. The Corporation classifies its investment and mortgage-related securities as available-for-sale, held-to-maturity and trading. Debt securities that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity and are stated at amortized cost. Debt and equity securities bought expressly for the purpose of selling in the near term are classified as trading securities and are measured at fair value with unrealized gains and losses reported in earnings. Debt and equity securities not classified as held-to-maturity or as trading are classified as available-for-sale. Available-for-sale securities are measured at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity, net of tax. Realized gains and losses, and declines in value judged to be other than temporary, are included in the consolidated statements of income as a component of non-interest income. The cost of securities sold is based on the specific identification method. The Corporation did not hold any held-to-maturity or trading securities at December 31, 2013 and 2012. | |
Discounts and premiums on investment and mortgage-backed securities are accreted and amortized into interest income using the effective yield method over the weighted average life of the securities. | |
Declines in the fair value of investment securities available for sale (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the securities is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) the Corporation has the intent to sell a security; (2) it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis; or (3) the Corporation does not expect to recover the entire amortized cost basis of the security. If the Corporation intends to sell a security or if it is more likely than not that the Corporation will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If the Corporation does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. | |
Loans and Leases. Loans and leases which management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance with adjustments for partial charge-offs, the allowance for loan and lease losses, deferred fees or costs on originated loans and leases, and unamortized premiums or discounts on any purchased loans. Loans originated or purchased and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Unrealized losses on such loans are recognized through a valuation allowance by a charge to other non-interest income. Gains and losses on the sale of loans are also included in other non-interest income. | |
A loan or a lease is accounted for as a troubled debt restructuring if the Corporation, for economic or legal reasons related to the borrower’s financial condition, grants a concession to the borrower that it would not otherwise consider. A troubled debt restructuring may involve the receipt of assets from the debtor in partial or full satisfaction of the loan or lease, or a modification of terms such as a reduction of the stated interest rate or face amount of the loan or lease, a reduction of accrued interest, an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan or lease with similar risk, or some combination of these concessions. Restructured loans can involve loans remaining on non-accrual, moving to non-accrual, or continuing on accrual status, depending on individual facts and circumstances. Non-accrual restructured loans are included and treated with all other non-accrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings which are considered and accounted for as impaired loans. Generally, restructured loans remain on non-accrual until the borrower has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual. | |
Interest on non-impaired loans and leases is accrued and credited to income on a daily basis based on the unpaid principal balance and is calculated using the effective interest method. Per policy, a loan or a lease is considered impaired and placed on a non-accrual status when it becomes 90 days past due or it is doubtful that contractual principal and interest will be collected in accordance with the terms of the contract. A loan or lease is determined to be past due if the borrower fails to meet a contractual payment and will continue to be considered past due until all contractual payments are received. When a loan or lease is placed on non-accrual, interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. If collectability of the contractual principal and interest is in doubt, payments received are first applied to reduce loan principal. If collectability of the contractual payments is not in doubt, payments may be applied to interest for interest amounts due on a cash basis. As soon as it is determined with certainty that the principal of an impaired loan or lease is uncollectable either through collections from the borrower or disposition of the underlying collateral, the portion of the carrying balance that exceeds the estimated measurement value of the loan or lease is charged off. Loans or leases are returned to accrual status when they are brought current in terms of both principal and accrued interest due, have performed in accordance with contractual terms for a reasonable period of time, and when the ultimate collectability of total contractual principal and interest is no longer doubtful. | |
Transfers of assets, including but not limited to participation interests in originated loans, that upon completion of the transfer satisfy the conditions to be reported as a sale, including legal isolation, are derecognized from the Consolidated Financial Statements. Transfers of assets that upon completion of the transfer do not meet the conditions of a sale are recorded on a gross basis with a secured borrowing identified to reflect the amount of the transferred interest. | |
Loan and lease origination fees as well as certain direct origination costs are deferred and amortized as an adjustment to loan yields over the stated term of the loan or lease. Loans or leases that result from a refinance or restructuring, other than a troubled debt restructuring, where terms are at least as favorable to the Corporation as the terms for comparable loans to other borrowers with similar collection risks and result in an essentially new loan or lease, are accounted for as a new loan or lease. Any unamortized net fees, costs, or penalties are recognized when the new loan or lease is originated. Unamortized net loan or lease fees or costs for loans and leases that result from a refinance or restructure with only minor modifications to the original loan or lease contract are carried forward as a part of the net investment in the new loan or lease. For troubled debt restructurings all fees received in connection with a modification of terms are applied as a reduction of the loan or lease and any related costs, including direct loan origination costs, are charged to expense as incurred. | |
Allowance for Loan and Lease Losses. The allowance for loan and lease losses is maintained at a level that management deems appropriate to absorb probable and estimable losses inherent in the loan and lease portfolios. Such inherent losses stem from the size and current risk characteristics of the loan and lease portfolio, an assessment of individual impaired and other problem loans and leases, actual loss experience, estimated fair value of underlying collateral, adverse situations that may affect the borrower’s ability to repay, and current geographic or industry-specific current economic events. Some impaired and other loans and leases have risk characteristics that are unique to an individual borrower and the loss must be estimated on an individual basis. Other impaired and problem loans and leases may have risk characteristics similar to other loans and leases and bear similar inherent risk of loss. Such loans and leases, which are not individually reviewed and measured for impairment, are aggregated and historical loss statistics are used to determine the risk of loss. | |
The measurement of the estimate of loss is reliant upon historical experience, information about the ability of the individual debtor to pay and appraisal of loan collateral in light of current economic conditions. An estimate of loss is an approximation of what portion of all amounts receivable, according to the contractual terms of that receivable, is deemed uncollectible. Determination of the allowance is inherently subjective because it requires estimation of amounts and timing of expected future cash flows on impaired and other problem loans and leases, estimation of losses on types of loans and leases based on historical losses and consideration of current economic trends, both local and national. Based on management’s periodic review using all previously mentioned pertinent factors, a provision for loan and lease losses is charged to expense when it is determined an increase in the allowance for loan and lease losses is appropriate. A negative provision for loan and lease losses may be recognized if determined a reduction in the level of allowance for loan and lease losses is appropriate. Loan and lease losses are charged against the allowance and recoveries are credited to the allowance. | |
The allowance for loan and lease losses contains specific allowances established for expected losses on impaired loans and leases. Impaired loans and leases are defined as loans and leases for which, based on current information and events, it is probable that the Corporation will be unable to collect scheduled principal and interest payments according to the contractual terms of the loan or lease agreement. Loans and leases subject to impairment are defined as non-accrual and restructured loans and leases exclusive of smaller homogeneous loans such as home equity, installment and 1-4 family residential loans. Impaired loans and leases are evaluated on an individual basis to determine the amount of specific reserve or charge-off required, if any. | |
The measurement value of impaired loans and leases is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate (the contractual interest rate adjusted for any net deferred loan fees or costs, premium, or discount existing at the origination or acquisition of the loan), the market price of the loan or lease, or the fair value of the underlying collateral less costs to sell, if the loan or lease is collateral dependent. A loan or lease is collateral dependent if repayment is expected to be provided principally by the underlying collateral. A loan’s effective interest rate may change over the life of the loan based on subsequent changes in rates or indices or may be fixed at the rate in effect at the date the loan was determined to be impaired. | |
Subsequent to the initial impairment, any significant change in the amount or timing of an impaired loan or lease’s future cash flows will result in a reassessment of the valuation allowance to determine if an adjustment is necessary. Measurements based on observable market price or fair value of the collateral may change over time and require a reassessment of the valuation allowance if there is a significant change in either measurement base. Any increase in the present value of expected future cash flows attributable to the passage of time is recorded as interest income accrued on the net carrying amount of the loan or lease at the effective interest rate used to discount the impaired loan or lease’s estimated future cash flows. For the year ended December 31, 2013, no interest income was recognized due to the increase of the present value of future cash flows attributable to the passage of time. Any change in present value attributable to changes in the amount or timing of expected future cash flows is recorded as loan loss expense in the same manner in which impairment was initially recognized or as a reduction of loan loss expense that otherwise would be reported. Where the level of loan or lease impairment is measured using observable market price or fair value of collateral, any change in the observable market price of an impaired loan or lease or fair value of the collateral of an impaired collateral-dependent loan or lease is recorded as loan loss expense in the same manner in which impairment was initially recognized. Any increase in the observable market value of the impaired loan or lease or fair value of the collateral in an impaired collateral-dependent loan or lease is recorded as a reduction in the amount of loan loss expense that otherwise would be reported. | |
Loans Held for Sale. Loans held for sale consist of the current origination of certain 1-4 family mortgage loans and are carried at lower of cost or fair value. Fees received from the borrower and direct costs to originate the loan are deferred and recognized as part of the gain or loss on sale. There were no loans held for sale outstanding at December 31, 2013 or 2012. | |
Net Investment in Direct Financing Leases. Net investment in direct financing lease agreements represents total undiscounted payments plus estimated unguaranteed residual value (approximating 3% to 20% of the cost of the related equipment) and is recorded as lease receivables when the lease is signed and the leased property is delivered to the client. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis which results in an approximate level rate of return on the unrecovered lease investment. Lease payments are recorded when due under the lease contract. Residual values are established at lease inception equal to the estimated value to be received from the equipment following termination of the initial lease and such estimated value considers all relevant information and circumstances regarding the equipment. In estimating the equipment’s fair value at lease termination, the Corporation relies on internally or externally prepared appraisals, published sources of used equipment prices and historical experience adjusted for known current industry and economic trends. The Corporation’s estimates are periodically reviewed to ensure reasonableness, however the amounts the Corporation will ultimately realize could differ from the estimated amounts. When there are other than temporary declines in the Corporation’s carrying amount of the unguaranteed residual value, the carrying value is reduced and charged to non-interest expense. | |
Operating Leases. Machinery and equipment are leased to clients under operating leases and are recorded at cost. Equipment under such leases is depreciated over the estimated useful life or term of the lease, if shorter. The impairment loss, if any, would be charged to expense in the period it becomes evident. Rental income is recorded on the straight-line accrual basis as other non-interest income. | |
Leasehold Improvements and Equipment. The cost of capitalized leasehold improvements is amortized on the straight-line method over the lesser of the term of the respective lease or estimated economic life. Equipment is stated at cost less accumulated depreciation and amortization which is calculated by the straight-line method over the estimated useful lives of three to ten years. Maintenance and repair costs are charged to expense as incurred. Improvements which extend the useful life are capitalized and depreciated over the remaining useful life of the assets. | |
Foreclosed Properties. Property acquired by repossession, foreclosure or by deed in lieu of foreclosure is carried at the lower of the recorded investment in the loan at the time of acquisition or the fair value of the underlying property, less costs to sell. Any write-down in the carrying value of a loan or lease at the time of acquisition is charged to the allowance for loan and lease losses. Any subsequent write-downs to reflect current fair value, as well as gains and losses on disposition and revenues are recorded in non-interest expense. Costs relating to the development and improvement of the property are capitalized while holding period costs are charged to other non-interest expense. Foreclosed properties are included in foreclosed properties, net in the consolidated balance sheets. | |
Bank-Owned Life Insurance. Bank-owned life insurance (“BOLI”) is reported at the amount that would be realized if the life insurance policies were surrendered on the balance sheet date. BOLI policies owned by the Banks are purchased with the objective to fund certain future employee benefit costs with the death benefit proceeds. The cash surrender value of such policies is recorded in cash surrender value of life insurance on the consolidated balance sheets and changes in the value are recorded in non-interest income. The total death benefit of all of the BOLI policies was $57.4 million as of December 31, 2013. There are no restrictions on the use of BOLI proceeds nor are there any contractual restrictions on the ability to surrender the policy. As of each of December 31, 2013 and 2012, there were no borrowings against the cash surrender value of the BOLI policies. | |
Federal Home Loan Bank Stock. The Banks own shares in the Federal Home Loan Bank – Chicago (“FHLB”) as required for membership to the FHLB. The minimum required investment was $1.3 million as of December 31, 2013. FHLB stock is carried at cost which approximates its fair value because the shares can be resold to other member banks at their $100 per share par amount. The Corporation periodically evaluates its holding in FHLB stock for impairment. Should the stock be impaired, it would be written down to its estimated fair value. There were no impairments recorded on FHLB stock during the years ended December 31, 2013 and 2012. | |
Other Investments. The Corporation owns certain equity investments in other corporate organizations which are not consolidated because the Corporation does not own more than a 50% interest or exercise control over the organization. Such investments are not variable interest entities. Investments in corporations representing at least a 20% interest are generally accounted for using the equity method and investments in corporations representing less than 20% interest are generally accounted for at cost. Investments in limited partnerships representing from at least a 3% up to a 50% interest in the entity are generally accounted for using the equity method and investments in limited partnerships representing less than 3% are generally accounted for at cost. All of these investments are periodically evaluated for impairment. Should an investment be impaired, it would be written down to its estimated fair value. The equity investments are reported in other assets and the income and expense from such investments, if any, is reported in non-interest income and non-interest expense. | |
Derivative Instruments. The Corporation uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets, liabilities, future cash flows and economic hedges for written client derivative contracts. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash to the other party based on a notional amount and an underlying as specified in the contract and may be subject to master netting agreements. A notional amount represents the number of units of a specific item, such as currency units. An underlying represents a variable, such as an interest rate. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying. | |
Market risk is the risk of loss arising from an adverse change in interest rates, exchange rates or equity prices. The Corporation’s primary market risk is interest rate risk. Instruments designed to manage interest rate risk include interest rate swaps, interest rate options and interest rate caps and floors with indices that relate to the pricing of specific assets and liabilities. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance sheet and the risk management strategies for the current and anticipated rate environments. Counterparty risk with respect to derivative instruments occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement. Counterparty risk is managed by limiting the counterparties to highly rated dealers and required collateral postings when values are in deficit positions, applying uniform credit standards to all activities with credit risk and monitoring the size and the maturity structure of the derivative portfolio. | |
All derivative instruments are to be carried at fair value on the consolidated balance sheets. The accounting for the gain or loss due to changes in the fair value of a derivative instrument depends on whether the derivative instrument qualifies as a hedge. If the derivative instrument does not qualify as a hedge, the gains or losses are reported in earnings when they occur. However, if the derivative instrument qualifies as a hedge, the accounting varies based on the type of risk being hedged. In 2013 and 2012, the Corporation solely utilized interest rate swaps which did not qualify for hedge accounting and therefore all changes in fair value and gains and losses on these instruments were reported in earnings as they occurred. The effects of netting arrangements are disclosed within the Notes of the Consolidated Financial Statements. | |
Income Taxes. Deferred income tax assets and liabilities are computed annually for temporary differences in timing between the financial statement and tax basis of assets and liabilities that result in taxable or deductible amounts in the future based on enacted tax law and rates applicable to periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, appropriate tax planning strategies and projections for future taxable income over the period which the deferred tax assets are deductible. When necessary, valuation allowances are established to reduce deferred tax assets to the realizable amount. Management believes it is more likely than not that the Corporation will realize the benefits of these deductible differences, net of the existing valuation allowances. | |
Income tax expense or benefit represents the tax payable or tax refundable for a period, adjusted by the applicable change in deferred tax assets and liabilities for that period. The Corporation and its subsidiaries file a consolidated federal income tax return and separate state income tax returns. Tax sharing agreements allocate taxes to each entity for the settlement of intercompany taxes. The Corporation applies a more likely than not standard to each of its tax positions when determining the amount of tax expense or benefit to record in its financial statements. Unrecognized tax benefits are recorded in other liabilities. The Corporation recognizes accrued interest relating to unrecognized tax benefits in income tax expense and penalties in other non-interest expense. | |
Other Comprehensive Income. Comprehensive income or loss, shown as a separate financial statement, includes net income or loss, changes in unrealized holding gains and losses on available for sale securities, changes in deferred gains and losses on investment securities transferred from available for sale to held to maturity, if any, changes in unrealized gains and losses associated with cash flow hedging instruments, if any, and the amortization of deferred gains and losses associated with terminated cash flow hedges, if any. For the year ended December 31, 2013, there were no items requiring reclassification out of accumulated other comprehensive income. | |
Earnings Per Share. Earnings per common share (“EPS”) is computed using the two-class method. Basic EPS are computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding for the period, excluding any participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as the holders of the Corporation’s common stock. Diluted EPS is computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of common shares determined for the basic EPS plus the dilutive effect of common stock equivalents using the treasury stock method based on the average market price for the period. Some stock options are anti-dilutive and therefore are not included in the calculation of diluted EPS. | |
Segments and Related Information. The Corporation is required to report each operating segment based on materiality thresholds of ten percent or more of certain amounts, such as revenue. Additionally, the Corporation is required to report separate operating segments until the revenue attributable to such segments is at least 75 percent of total consolidated revenue. The Corporation provides a broad range of financial services to individuals and companies in South Central, Northeastern and Southeastern Wisconsin. These services include demand, time, and savings products, the sale of certain non-deposit financial products and commercial and retail lending, leasing and trust services. While the Corporation’s chief decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a corporate-wide basis. The Corporation’s business units have similar basic characteristics in the nature of the products, production processes and type or class of client for products or services; therefore, these business units are considered one operating segment. | |
Stock Options. Prior to January 1, 2006, the Corporation accounted for stock-based compensation using the intrinsic value method. Under the intrinsic value method, compensation expense for employee stock options was generally not recognized if the exercise price of the option equaled or exceeded the fair market value of the stock on the date of grant. | |
On January 1, 2006, the Corporation adopted ASC Topic 718 using the prospective method as stock options were only granted by the Corporation prior to meeting the definition of a public entity. Under the prospective method, ASC Topic 718 must only be applied to the extent that those awards are subsequently modified, repurchased or cancelled. No stock options have been granted since the Corporation met the definition of a public entity and no stock options have been modified, repurchased or cancelled subsequent to the adoption of ASC Topic 718. Therefore, no stock-based compensation was recognized in the consolidated statements of income for the years ended December 31, 2013 or 2012, except with respect to restricted stock awards. Upon vesting of any options subject to ASC Topic 718, the benefits of tax deductions in excess of recognized compensation expense will be reported as a financing cash flow, rather than as an operating cash flow. | |
Future Accounting Changes. | |
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exits.” This ASU provides that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose. In these cases, the unrecognized tax benefit should be presented as a liability. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application is permitted. The Corporation is in the process of evaluating the impact of this standard on its existing disclosures and currently does not expect this standard to have a material impact on the Corporation’s consolidated financial position or results of operations. | |
In January 2014, the FASB issued ASU No. 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” This ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar agreement. In addition, the amendments require interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure in accordance with local requirements of the applicable jurisdiction. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective method or a prospective transition method. Early adoption is permitted. The Corporation is in the process of evaluating the impact of this standard but does not expect this standard to have a material impact on the Corporation’s consolidated financial position or results of operations. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2013 | |
Cash and Cash Equivalents [Abstract] | ' |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and due from banks was approximately $13.2 million and $21.6 million at December 31, 2013 and 2012, respectively. Required reserves in the form of either vault cash or deposits held at the Federal Reserve Bank (“FRB”) were $1.5 million and $291,000 at December 31, 2013 and 2012. FRB balances were $53.0 million and $53.1 million at December 31, 2013 and 2012, respectively, and are included in short-term investments on the Consolidated Balance Sheets. Short-term investments, considered cash equivalents, were $68.1 million and $64.0 million at December 31, 2013 and 2012, respectively. Federal funds sold at December 31, 2013 and 2012 were $24,000 and $237,000, respectively and are included in short-term investments on the Consolidated Balance Sheets. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available-for-sale were as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrealized | unrealized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 16,380 | $ | 9 | $ | (145 | ) | $ | 16,244 | ||||||||||||||||
Municipal obligations | 16,207 | 35 | (753 | ) | 15,489 | ||||||||||||||||||||
Asset-backed securities | 1,517 | — | (23 | ) | 1,494 | ||||||||||||||||||||
Collateralized mortgage obligations - government issued | 111,010 | 2,238 | (1,279 | ) | 111,969 | ||||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 35,561 | 57 | (696 | ) | 34,922 | ||||||||||||||||||||
$ | 180,675 | $ | 2,339 | $ | (2,896 | ) | $ | 180,118 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrealized | unrealized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 19,667 | $ | 62 | $ | (8 | ) | $ | 19,721 | ||||||||||||||||
Municipal obligations | $ | 11,897 | $ | 179 | $ | (43 | ) | $ | 12,033 | ||||||||||||||||
Collateralized mortgage obligations - government issued | 148,369 | 3,344 | (68 | ) | 151,645 | ||||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 17,128 | 88 | (19 | ) | 17,197 | ||||||||||||||||||||
$ | 197,061 | $ | 3,673 | $ | (138 | ) | $ | 200,596 | |||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises represent securities issued by the Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”). Collateralized mortgage obligations - government issued represent securities guaranteed by the Government National Mortgage Association (“GNMA”). Collateralized mortgage obligations — government-sponsored enterprises include securities guaranteed by FHLMC and the FNMA. Asset-backed securities represent securities issued by the Student Loan Marketing Association (“SLMA”) and are 97% guaranteed by the U.S. government. Municipal obligations include securities issued by various municipalities located primarily within the State of Wisconsin and are primarily general obligation bonds that are tax-exempt in nature. There were no sales of securities available-for-sale during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
At December 31, 2013 and December 31, 2012, securities with a fair value of $42.3 million and $23.1 million, respectively, were pledged to secure interest rate swap contracts, outstanding FHLB advances, if any, and additional FHLB availability. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available-for-sale by contractual maturity at December 31, 2013 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations without call or prepayment penalties. | |||||||||||||||||||||||||
Amortized Cost | Estimated | ||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | |||||||||||||||||||||
Due in one year through five years | 15,150 | 15,036 | |||||||||||||||||||||||
Due in five through ten years | 41,116 | 41,018 | |||||||||||||||||||||||
Due in over ten years | 124,409 | 124,064 | |||||||||||||||||||||||
$ | 180,675 | $ | 180,118 | ||||||||||||||||||||||
The table below shows the Corporation’s gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual investments were in a continuous unrealized loss position at December 31, 2013 and 2012. At December 31, 2013 and 2012, the Corporation owned 131 securities and 30 securities that were in an unrealized loss position, respectively. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. At December 31, 2013, the Corporation held 13 securities that had been in a continuous loss position for twelve months or greater. | |||||||||||||||||||||||||
The Corporation also has not specifically identified securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. It is expected that the Corporation will recover the entire amortized cost basis of each security based upon an evaluation of the present value of the expected future cash flows. Accordingly, no other than temporary impairment was recorded in the Consolidated Statements of Income for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
A summary of unrealized loss information for available-for-sale securities, categorized by security type follows: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 10,608 | $ | 145 | $ | — | $ | — | $ | 10,608 | $ | 145 | |||||||||||||
Municipal obligations | 12,001 | 650 | 981 | 103 | 12,982 | 753 | |||||||||||||||||||
Asset-backed securities | 1,494 | 23 | — | — | 1,494 | 23 | |||||||||||||||||||
Collateralized mortgage obligations - government issued | 34,021 | 997 | 6,146 | 282 | 40,167 | 1,279 | |||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 20,628 | 506 | 5,418 | 190 | 26,046 | 696 | |||||||||||||||||||
$ | 78,752 | $ | 2,321 | $ | 12,545 | $ | 575 | $ | 91,297 | $ | 2,896 | ||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 2,992 | $ | 8 | $ | — | $ | — | $ | 2,992 | $ | 8 | |||||||||||||
Municipal obligations | 3,450 | 43 | — | — | 3,450 | 43 | |||||||||||||||||||
Collateralized mortgage obligations - government issued | 12,990 | 68 | — | — | 12,990 | 68 | |||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 5,075 | 19 | — | — | 5,075 | 19 | |||||||||||||||||||
$ | 24,507 | $ | 138 | $ | — | $ | — | $ | 24,507 | $ | 138 | ||||||||||||||
Loan_and_Lease_Receivables_Imp
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | ' | ||||||||||||||||||||||||||||
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | |||||||||||||||||||||||||||||
Loan and lease receivables consist of the following: | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 141,164 | $ | 144,988 | |||||||||||||||||||||||||
Commercial real estate — non-owner occupied | 341,695 | 323,660 | |||||||||||||||||||||||||||
Construction and land development | 68,708 | 64,966 | |||||||||||||||||||||||||||
Multi-family | 62,758 | 58,454 | |||||||||||||||||||||||||||
1-4 family | 30,786 | 31,943 | |||||||||||||||||||||||||||
Total commercial real estate | 645,111 | 624,011 | |||||||||||||||||||||||||||
Commercial and industrial | 293,552 | 256,458 | |||||||||||||||||||||||||||
Direct financing leases, net | 26,065 | 15,926 | |||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Home equity and second mortgages | 5,272 | 4,642 | |||||||||||||||||||||||||||
Other | 11,972 | 11,671 | |||||||||||||||||||||||||||
Total consumer and other | 17,244 | 16,313 | |||||||||||||||||||||||||||
Total gross loans and leases receivable | 981,972 | 912,708 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Allowance for loan and lease losses | 13,901 | 15,400 | |||||||||||||||||||||||||||
Deferred loan fees | 1,021 | 748 | |||||||||||||||||||||||||||
Loans and leases receivable, net | $ | 967,050 | $ | 896,560 | |||||||||||||||||||||||||
During the years ended December 31, 2013 and 2012, $46.2 million and $58.3 million of loans were transferred to third parties, respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, including the requirements specific to loan participations, and therefore $46.2 million and $58.3 million during the years ended December 31, 2013 and 2012, respectively, have been derecognized in the audited Consolidated Financial Statements. The Corporation has a continuing involvement in each of the loans by way of relationship management and servicing the loans; however, there are no further obligations to the third-party participant required of the Corporation in the event of a borrower’s default, other than standard representations and warranties related to sold amounts. The loans were transferred at their fair value and no gain or loss was recognized upon the transfer, as the participation interest was transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represent adequate compensation. The total amount of loan participations purchased on the Corporation’s Consolidated Balance Sheets as of December 31, 2013 and December 31, 2012 was $498,000 and $765,000, respectively. | |||||||||||||||||||||||||||||
The total amount of outstanding loans transferred to third parties as loan participations sold as of December 31, 2013 and December 31, 2012 was $52.1 million and $50.1 million, respectively, all of which was treated as a sale and derecognized under the applicable accounting guidance in effect at the time of the transfers of the financial assets. The Corporation’s continuing involvement with these loans is by way of partial ownership, relationship management and all servicing responsibilities. As of December 31, 2013 and December 31, 2012, the total amount of the Corporation’s partial ownership of loans on the Corporation’s Consolidated Balance Sheets was $77.2 million and $71.9 million, respectively. As of December 31, 2013, no loans in this participation sold portfolio were considered impaired as compared to $3.2 million as of December 31, 2012. This decline was due to the fact that the impaired loan in this portfolio was repurchased and thus removed from this portfolio as described further below. From December 2010 through May 2013, the Corporation recognized a total of $2.7 million in charge-offs associated with specific credits within the retained portion of this portfolio of loans in accordance with the Corporation’s allowance for loan and lease loss measurement process and policies. The Corporation does not share in the participant’s portion of the charge-offs. | |||||||||||||||||||||||||||||
In May 2013, the Corporation repurchased, from the original participating entity, a portion of one loan which was previously and appropriately accounted for as a transfer (sale) under a participation agreement. This repurchase was not a condition of the original participation agreement and was undertaken to provide the Corporation with the ability to directly and effectively manage the workout process of this loan. As agreed to with the original participating entity and consistent with the transaction agreement, such participated portion of the loan with aggregate principal balance of $3.2 million was repurchased with cash at fair value, or a discounted price of $1.5 million. | |||||||||||||||||||||||||||||
The $1.4 million carrying amount of this portion of the loan is recorded on the Consolidated Balance Sheets within loans and leases receivable, net at December 31, 2013 along with Corporation’s previously retained portion of this loan. This loan is classified as a nonperforming troubled debt restructuring because the Corporation cannot reasonably estimate the timing of the cash flows expected to be collected and therefore the discount will not be accreted to earnings until the carrying amount is fully paid. | |||||||||||||||||||||||||||||
During the year ended December 31, 2013, there were no changes to the allowance for loan and lease losses relating to this loan, as it is a collateral dependent loan and was deemed to have sufficient collateral value as of December 31, 2013 to support the carrying value. | |||||||||||||||||||||||||||||
Certain of the Corporation’s executive officers, directors and their related interests are loan clients of the Banks. As of December 31, 2013 and 2012, loans aggregating approximately $3.0 million and $11.4 million, respectively, were outstanding to such parties. New loans granted to such parties during the years ended December 31, 2013 and 2012 were approximately $1.6 million and $1.4 million and repayments on such loans were approximately $10.0 million and $1.2 million, respectively. These loans were made in the ordinary course of business and on substantially the same terms as those prevailing at the time for comparable loans not related to the lender. None of these loans were considered impaired. | |||||||||||||||||||||||||||||
The following information illustrates ending balances of the Corporation’s loan and lease portfolio, including impaired loans by class of receivable, and considering certain credit quality indicators as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Category | |||||||||||||||||||||||||||||
As of December 31, 2013 | I | II | III | IV | Total | ||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 118,764 | $ | 11,259 | $ | 10,802 | $ | 339 | $ | 141,164 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 290,865 | 29,444 | 21,103 | 283 | 341,695 | ||||||||||||||||||||||||
Construction and land development | 53,493 | 1,972 | 7,754 | 5,489 | 68,708 | ||||||||||||||||||||||||
Multi-family | 57,049 | 5,678 | — | 31 | 62,758 | ||||||||||||||||||||||||
1-4 family | 19,197 | 7,611 | 3,312 | 666 | 30,786 | ||||||||||||||||||||||||
Total commercial real estate | 539,368 | 55,964 | 42,971 | 6,808 | 645,111 | ||||||||||||||||||||||||
Commercial and industrial | 268,109 | 11,688 | 5,712 | 8,043 | 293,552 | ||||||||||||||||||||||||
Direct financing leases, net | 23,171 | 2,421 | 473 | — | 26,065 | ||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 4,408 | 134 | 150 | 580 | 5,272 | ||||||||||||||||||||||||
Other | 11,177 | — | — | 795 | 11,972 | ||||||||||||||||||||||||
Total consumer and other | 15,585 | 134 | 150 | 1,375 | 17,244 | ||||||||||||||||||||||||
Total gross loans and leases receivable | $ | 846,233 | $ | 70,207 | $ | 49,306 | $ | 16,226 | $ | 981,972 | |||||||||||||||||||
Category as a % of total portfolio | 86.18 | % | 7.15 | % | 5.02 | % | 1.65 | % | 100 | % | |||||||||||||||||||
Category | |||||||||||||||||||||||||||||
As of December 31, 2012 | I | II | III | IV | Total | ||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 117,180 | $ | 9,688 | $ | 17,351 | $ | 769 | $ | 144,988 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 267,884 | 29,553 | 22,992 | 3,231 | 323,660 | ||||||||||||||||||||||||
Construction and land development | 49,134 | 2,037 | 8,384 | 5,411 | 64,966 | ||||||||||||||||||||||||
Multi-family | 50,808 | 6,810 | 790 | 46 | 58,454 | ||||||||||||||||||||||||
1-4 family | 18,255 | 4,657 | 7,873 | 1,158 | 31,943 | ||||||||||||||||||||||||
Total commercial real estate | 503,261 | 52,745 | 57,390 | 10,615 | 624,011 | ||||||||||||||||||||||||
Commercial and industrial | 233,524 | 9,922 | 10,170 | 2,842 | 256,458 | ||||||||||||||||||||||||
Direct financing leases, net | 10,486 | 3,897 | 1,543 | — | 15,926 | ||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 3,525 | 157 | 220 | 740 | 4,642 | ||||||||||||||||||||||||
Other | 10,641 | — | — | 1,030 | 11,671 | ||||||||||||||||||||||||
Total consumer and other | 14,166 | 157 | 220 | 1,770 | 16,313 | ||||||||||||||||||||||||
Total gross loans and leases receivable | $ | 761,437 | $ | 66,721 | $ | 69,323 | $ | 15,227 | $ | 912,708 | |||||||||||||||||||
Category as a % of total portfolio | 83.43 | % | 7.31 | % | 7.6 | % | 1.67 | % | 100 | % | |||||||||||||||||||
Credit underwriting through a committee process is a key component of the Corporation’s operating philosophy. Business development officers have relatively low individual lending authority limits, and thus a significant portion of the Corporation’s new credit extensions require approval from a loan approval committee regardless of the type of loan or lease, asset quality grade of the credit, amount of the credit, or the related complexities of each proposal. In addition, the Corporation makes every effort to ensure that there is appropriate collateral at the time of origination to protect the Corporation’s interest in the related loan or lease. | |||||||||||||||||||||||||||||
Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers, or as other circumstances dictate. The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent definition, and are then applied to specific loan types based on the nature of the loan. Each risk rating is subjective and, depending on the size and nature of the credit, subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management. | |||||||||||||||||||||||||||||
Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrower’s management team or the industry in which the borrower operates. Loans and leases in this category are not subject to additional monitoring procedures above and beyond what is required at the origination or renewal of the loan or lease. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers and continued review of such borrowers’ compliance with the terms of their respective agreements. | |||||||||||||||||||||||||||||
Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends and collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by subcommittees of the Banks’ loan committees. | |||||||||||||||||||||||||||||
Category III — Loans and leases in this category are identified by the Corporation’s business development officers and senior management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Banks. Category III loans and leases generally exhibit undesirable characteristics such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all required principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and loan committees of the Banks on a monthly basis and the Banks’ Boards of Directors at each of their regularly scheduled meetings. | |||||||||||||||||||||||||||||
Category IV — Loans and leases in this category are considered to be impaired. Impaired loans and leases have been placed on non-accrual as management has determined that it is unlikely that the Banks will receive the required principal and interest in accordance with the contractual terms of the agreement. Impaired loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually for impaired loans and leases. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded to reflect the magnitude of the impairment. Loans and leases in this category are monitored by management and loan committees of the Banks on a monthly basis and the Banks’ Boards of Directors at each of their regularly scheduled meetings. | |||||||||||||||||||||||||||||
Utilizing regulatory classification terminology, the Corporation identified $22.8 million and $22.0 million of loans and leases as Substandard as of December 31, 2013 and 2012, respectively. No loans were considered Special Mention, Doubtful or Loss as of either December 31, 2013 and 2012. The population of Substandard loans are a subset of Category III and Category IV loans. | |||||||||||||||||||||||||||||
The delinquency aging of the loan and lease portfolio by class of receivable as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||||
As of December 31, 2013 | 30-59 | 60-89 | Greater | Total past due | Current | Total loans | |||||||||||||||||||||||
days past due | days past due | than 90 | |||||||||||||||||||||||||||
days past due | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | — | $ | — | $ | 140,825 | $ | 140,825 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 341,412 | 341,412 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 63,286 | 63,286 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 62,727 | 62,727 | |||||||||||||||||||||||
1-4 family | — | — | — | — | 30,265 | 30,265 | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | 285,541 | 285,541 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 26,065 | 26,065 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | — | — | 4,819 | 4,819 | |||||||||||||||||||||||
Other | — | — | — | — | 11,177 | 11,177 | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 966,117 | $ | 966,117 | |||||||||||||||||
Non-accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 254 | $ | 254 | $ | 85 | $ | 339 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 283 | 283 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 5,422 | 5,422 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 31 | 31 | |||||||||||||||||||||||
1-4 family | — | 180 | 123 | 303 | 218 | 521 | |||||||||||||||||||||||
Commercial & industrial | 1,944 | 1,407 | 53 | 3,404 | 4,607 | 8,011 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | 85 | 85 | 368 | 453 | |||||||||||||||||||||||
Other | — | — | 795 | 795 | — | 795 | |||||||||||||||||||||||
Total | $ | 1,944 | $ | 1,587 | $ | 1,310 | $ | 4,841 | $ | 11,014 | $ | 15,855 | |||||||||||||||||
Total loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 254 | $ | 254 | $ | 140,910 | $ | 141,164 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 341,695 | 341,695 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 68,708 | 68,708 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 62,758 | 62,758 | |||||||||||||||||||||||
1-4 family | — | 180 | 123 | 303 | 30,483 | 30,786 | |||||||||||||||||||||||
Commercial & industrial | 1,944 | 1,407 | 53 | 3,404 | 290,148 | 293,552 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 26,065 | 26,065 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | 85 | 85 | 5,187 | 5,272 | |||||||||||||||||||||||
Other | — | — | 795 | 795 | 11,177 | 11,972 | |||||||||||||||||||||||
Total | $ | 1,944 | $ | 1,587 | $ | 1,310 | $ | 4,841 | $ | 977,131 | $ | 981,972 | |||||||||||||||||
Percent of portfolio | 0.2 | % | 0.16 | % | 0.13 | % | 0.49 | % | 99.51 | % | 100 | % | |||||||||||||||||
As of December 31, 2012 | 30-59 | 60-89 | Greater | Total past due | Current | Total loans | |||||||||||||||||||||||
days past due | days past due | than 90 | |||||||||||||||||||||||||||
days past due | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 210 | $ | — | $ | — | $ | 210 | $ | 144,009 | $ | 144,219 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 320,789 | 320,789 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 60,020 | 60,020 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 58,408 | 58,408 | |||||||||||||||||||||||
1-4 family | — | — | — | — | 30,937 | 30,937 | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | 253,616 | 253,616 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 15,926 | 15,926 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | — | — | 4,030 | 4,030 | |||||||||||||||||||||||
Other | — | — | — | — | 10,641 | 10,641 | |||||||||||||||||||||||
Total | $ | 210 | $ | — | $ | — | $ | 210 | $ | 898,376 | $ | 898,586 | |||||||||||||||||
Non-accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 117 | $ | 117 | $ | 652 | $ | 769 | |||||||||||||||||
Non-owner occupied | 2,415 | — | 444 | 2,859 | 12 | 2,871 | |||||||||||||||||||||||
Construction and land development | — | — | 471 | 471 | 4,475 | 4,946 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 46 | 46 | |||||||||||||||||||||||
1-4 family | 74 | — | 482 | 556 | 450 | 1,006 | |||||||||||||||||||||||
Commercial & industrial | 57 | — | 560 | 617 | 2,225 | 2,842 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | 121 | 121 | 491 | 612 | |||||||||||||||||||||||
Other | — | — | 1,030 | 1,030 | — | 1,030 | |||||||||||||||||||||||
Total | $ | 2,546 | $ | — | $ | 3,225 | $ | 5,771 | $ | 8,351 | $ | 14,122 | |||||||||||||||||
Total loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 210 | $ | — | $ | 117 | $ | 327 | $ | 144,661 | $ | 144,988 | |||||||||||||||||
Non-owner occupied | 2,415 | — | 444 | 2,859 | 320,801 | 323,660 | |||||||||||||||||||||||
Construction and land development | — | — | 471 | 471 | 64,495 | 64,966 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 58,454 | 58,454 | |||||||||||||||||||||||
1-4 family | 74 | — | 482 | 556 | 31,387 | 31,943 | |||||||||||||||||||||||
Commercial & industrial | 57 | — | 560 | 617 | 255,841 | 256,458 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 15,926 | 15,926 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | 121 | 121 | 4,521 | 4,642 | |||||||||||||||||||||||
Other | — | — | 1,030 | 1,030 | 10,641 | 11,671 | |||||||||||||||||||||||
Total | $ | 2,756 | $ | — | $ | 3,225 | $ | 5,981 | $ | 906,727 | $ | 912,708 | |||||||||||||||||
Percent of portfolio | 0.3 | % | — | % | 0.36 | % | 0.66 | % | 99.34 | % | 100 | % | |||||||||||||||||
The Corporation’s total impaired assets consisted of the following at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Non-accrual loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 339 | $ | 769 | |||||||||||||||||||||||||
Commercial real estate — non-owner occupied | 283 | 2,871 | |||||||||||||||||||||||||||
Construction and land development | 5,422 | 4,946 | |||||||||||||||||||||||||||
Multi-family | 31 | 46 | |||||||||||||||||||||||||||
1-4 family | 521 | 1,006 | |||||||||||||||||||||||||||
Total non-accrual commercial real estate | 6,596 | 9,638 | |||||||||||||||||||||||||||
Commercial and industrial | 8,011 | 2,842 | |||||||||||||||||||||||||||
Direct financing leases, net | — | — | |||||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 453 | 612 | |||||||||||||||||||||||||||
Other | 795 | 1,030 | |||||||||||||||||||||||||||
Total non-accrual consumer and other loans | 1,248 | 1,642 | |||||||||||||||||||||||||||
Total non-accrual loans and leases | 15,855 | 14,122 | |||||||||||||||||||||||||||
Foreclosed properties, net | 333 | 1,574 | |||||||||||||||||||||||||||
Total non-performing assets | 16,188 | 15,696 | |||||||||||||||||||||||||||
Performing troubled debt restructurings | 371 | 1,105 | |||||||||||||||||||||||||||
Total impaired assets | $ | 16,559 | $ | 16,801 | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Total non-accrual loans and leases to gross loans and leases | 1.61 | % | 1.55 | % | |||||||||||||||||||||||||
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 1.65 | 1.72 | |||||||||||||||||||||||||||
Total non-performing assets to total assets | 1.28 | 1.28 | |||||||||||||||||||||||||||
Allowance for loan and lease losses to gross loans and leases | 1.42 | 1.69 | |||||||||||||||||||||||||||
Allowance for loan and lease losses to non-accrual loans and leases | 87.68 | 109.05 | |||||||||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, $8.1 million and $8.8 million of the non-accrual loans were considered troubled debt restructurings, respectively. As of December 31, 2013, there were no unfunded commitments associated with troubled debt restructured loans and leases. | |||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | ||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||
Loans | Investment | Investment | Loans | Investment | Investment | ||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | 1 | $ | 110 | $ | 84 | 5 | $ | 338 | $ | 303 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 3 | 385 | 283 | 5 | 885 | 803 | |||||||||||||||||||||||
Construction and land development | 3 | 6,060 | 5,489 | 4 | 8,044 | 4,953 | |||||||||||||||||||||||
Multi-family | 1 | 184 | 31 | 1 | 184 | 47 | |||||||||||||||||||||||
1-4 family | 10 | 911 | 666 | 13 | 1,674 | 1,132 | |||||||||||||||||||||||
Commercial and industrial | 5 | 1,935 | 565 | 7 | 2,250 | 931 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgage | 6 | 752 | 580 | 7 | 865 | 726 | |||||||||||||||||||||||
Other | 1 | 2,076 | 795 | 1 | 2,076 | 1,030 | |||||||||||||||||||||||
Total | 30 | $ | 12,413 | $ | 8,493 | 43 | $ | 16,316 | $ | 9,925 | |||||||||||||||||||
All loans and leases modified as a troubled debt restructuring are evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a default, is considered in the determination of an appropriate level of the allowance for loan and lease losses. | |||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, our troubled debt restructurings grouped by type of concession were as follows: | |||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
Number | Recorded Investment | Number | Recorded Investment | ||||||||||||||||||||||||||
of | of | ||||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Extension of term | 1 | $ | 55 | 2 | $ | 117 | |||||||||||||||||||||||
Combination of extension and interest rate concession | 17 | 6,498 | 26 | 7,121 | |||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Extension of term | 1 | 49 | 3 | 241 | |||||||||||||||||||||||||
Combination of extension and interest rate concession | 4 | 516 | 4 | 689 | |||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Extension of term | 2 | 880 | 2 | 1,117 | |||||||||||||||||||||||||
Combination of extension and interest rate concession | 5 | 495 | 6 | 640 | |||||||||||||||||||||||||
Total | 30 | $ | 8,493 | 43 | $ | 9,925 | |||||||||||||||||||||||
There were no loans and leases modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the year ended December 31, 2013. | |||||||||||||||||||||||||||||
The following represents additional information regarding the Corporation’s impaired loans and leases by class: | |||||||||||||||||||||||||||||
Impaired Loans and Leases | |||||||||||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Recorded | Unpaid | Impairment | Average | Foregone | Interest | Net | |||||||||||||||||||||||
investment | principal | reserve | recorded | interest | income | foregone | |||||||||||||||||||||||
balance | investment(1) | income | recognized | interest | |||||||||||||||||||||||||
income | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
With no impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 339 | $ | 339 | $ | — | $ | 715 | $ | 57 | $ | 50 | $ | 7 | |||||||||||||||
Non-owner occupied | 229 | 229 | — | 1,586 | 198 | 17 | 181 | ||||||||||||||||||||||
Construction and land development | 5,489 | 8,160 | — | 5,777 | 203 | 3 | 200 | ||||||||||||||||||||||
Multi-family | 31 | 398 | — | 366 | 93 | — | 93 | ||||||||||||||||||||||
1-4 family | 244 | 244 | — | 405 | 31 | 34 | (3 | ) | |||||||||||||||||||||
Commercial and industrial | 555 | 766 | — | 434 | 97 | 114 | (17 | ) | |||||||||||||||||||||
Direct financing leases, net | — | — | — | 6 | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 518 | 518 | — | 593 | 37 | 3 | 34 | ||||||||||||||||||||||
Other | 795 | 1,461 | — | 942 | 100 | — | 100 | ||||||||||||||||||||||
Total | $ | 8,200 | $ | 12,115 | $ | — | $ | 10,824 | $ | 816 | $ | 221 | $ | 595 | |||||||||||||||
With impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Non-owner occupied | 54 | 94 | 54 | 88 | 6 | — | 6 | ||||||||||||||||||||||
Construction and land development | — | — | — | — | — | — | — | ||||||||||||||||||||||
Multi-family | — | — | — | — | — | — | — | ||||||||||||||||||||||
1-4 family | 422 | 422 | 155 | 437 | 18 | — | 18 | ||||||||||||||||||||||
Commercial and industrial | 7,488 | 7,488 | 131 | 670 | 42 | — | 42 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 62 | 62 | 62 | 65 | 5 | — | 5 | ||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 8,026 | $ | 8,066 | $ | 402 | $ | 1,260 | $ | 71 | $ | — | $ | 71 | |||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 339 | $ | 339 | $ | — | $ | 715 | $ | 57 | $ | 50 | $ | 7 | |||||||||||||||
Non-owner occupied | 283 | 323 | 54 | 1,674 | 204 | 17 | 187 | ||||||||||||||||||||||
Construction and land development | 5,489 | 8,160 | — | 5,777 | 203 | 3 | 200 | ||||||||||||||||||||||
Multi-family | 31 | 398 | — | 366 | 93 | — | 93 | ||||||||||||||||||||||
1-4 family | 666 | 666 | 155 | 842 | 49 | 34 | 15 | ||||||||||||||||||||||
Commercial and industrial | 8,043 | 8,254 | 131 | 1,104 | 139 | 114 | 25 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | 6 | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 580 | 580 | 62 | 658 | 42 | 3 | 39 | ||||||||||||||||||||||
Other | 795 | 1,461 | — | 942 | 100 | — | 100 | ||||||||||||||||||||||
Grand total | $ | 16,226 | $ | 20,181 | $ | 402 | $ | 12,084 | $ | 887 | $ | 221 | $ | 666 | |||||||||||||||
-1 | Average recorded investment is calculated primarily using daily average balances. | ||||||||||||||||||||||||||||
Impaired Loans and Leases | |||||||||||||||||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Recorded | Unpaid | Impairment | Average | Foregone | Interest | Net | |||||||||||||||||||||||
investment | principal | reserve | recorded | interest | income | foregone | |||||||||||||||||||||||
balance | investment(1) | income | recognized | Interest | |||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
With no impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 741 | $ | 741 | $ | — | $ | 1,482 | $ | 142 | $ | 2 | $ | 140 | |||||||||||||||
Non-owner occupied | 648 | 648 | — | 1,239 | 222 | 207 | 15 | ||||||||||||||||||||||
Construction and land development | 4,946 | 8,537 | — | 5,834 | 246 | 24 | 222 | ||||||||||||||||||||||
Multi-family | 47 | 414 | — | 313 | 69 | 60 | 9 | ||||||||||||||||||||||
1-4 family | 544 | 677 | — | 2,213 | 151 | — | 151 | ||||||||||||||||||||||
Commercial and industrial | 2,394 | 2,404 | — | 1,987 | 163 | 25 | 138 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | 4 | — | 1 | (1 | ) | |||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 656 | 657 | — | 913 | 55 | 1 | 54 | ||||||||||||||||||||||
Other | 1,030 | 1,620 | — | 1,150 | 113 | 1 | 112 | ||||||||||||||||||||||
Total | $ | 11,006 | $ | 15,698 | $ | — | $ | 15,135 | $ | 1,161 | $ | 321 | $ | 840 | |||||||||||||||
With impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 28 | $ | 28 | $ | 16 | $ | 30 | $ | 2 | $ | — | $ | 2 | |||||||||||||||
Non-owner occupied | 2,582 | 2,582 | 829 | 162 | 33 | — | 33 | ||||||||||||||||||||||
Construction and land development | 465 | 465 | 174 | 528 | 15 | — | 15 | ||||||||||||||||||||||
Multi-family | — | — | — | — | — | — | — | ||||||||||||||||||||||
1-4 family | 614 | 614 | 224 | 637 | 36 | — | 36 | ||||||||||||||||||||||
Commercial and industrial | 447 | 3,137 | 187 | 1,350 | 178 | — | 178 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 85 | 85 | 87 | 103 | 7 | — | 7 | ||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 4,221 | $ | 6,911 | $ | 1,517 | $ | 2,810 | $ | 271 | $ | — | $ | 271 | |||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 769 | $ | 769 | $ | 16 | $ | 1,512 | $ | 144 | $ | 2 | $ | 142 | |||||||||||||||
Non-owner occupied | 3,230 | 3,230 | 829 | 1,401 | 255 | 207 | 48 | ||||||||||||||||||||||
Construction and land development | 5,411 | 9,002 | 174 | 6,362 | 261 | 24 | 237 | ||||||||||||||||||||||
Multi-family | 47 | 414 | — | 313 | 69 | 60 | 9 | ||||||||||||||||||||||
1-4 family | 1,158 | 1,291 | 224 | 2,850 | 187 | — | 187 | ||||||||||||||||||||||
Commercial and industrial | 2,841 | 5,541 | 187 | 3,337 | 341 | 25 | 316 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | 4 | — | 1 | (1 | ) | |||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 741 | 742 | 87 | 1,016 | 62 | 1 | 61 | ||||||||||||||||||||||
Other | 1,030 | 1,620 | — | 1,150 | 113 | 1 | 112 | ||||||||||||||||||||||
Grand total | $ | 15,227 | $ | 22,609 | $ | 1,517 | $ | 17,945 | $ | 1,432 | $ | 321 | $ | 1,111 | |||||||||||||||
-1 | Average recorded investment is calculated primarily using daily average balances. | ||||||||||||||||||||||||||||
The difference between the loans and leases recorded investment and the unpaid principal balance of $4.0 million and $7.4 million as of December 31, 2013 and 2012, respectively, represents partial charge-offs resulting from confirmed losses due to the value of the collateral securing the loans and leases being less than the carrying values of the loans and leases. Impaired loans and leases also included $371,000 and $1.1 million of loans that were performing troubled debt restructurings, and thus, while not on non-accrual, were reported as impaired, due to the concession in terms. When a loan is placed on non-accrual, interest accruals are discontinued and previously accrued but uncollected interest is deducted from interest income. If collectability of contractual principal and interest payments is in doubt, cash payments collected on non-accrual loans are first applied to principal. Foregone interest represents the interest that was contractually due on the note but not received or recorded. To the extent the amount of principal on a non-accrual note is fully collected and additional cash is received, the Corporation will recognize interest income. | |||||||||||||||||||||||||||||
To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the loan and lease portfolio by segments and risk ratings. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. | |||||||||||||||||||||||||||||
As of June 30, 2013, based on the results of the Corporation’s continuous risk assessment and monitoring process, the Corporation refined its methodology of establishing the general portion of the allowance for loan and lease losses attributable to the historical loss migration by shortening the historical loss period from five years to three years and increasing the historical loss factor applied to Category III loans. Both changes were implemented to more accurately reflect the estimate of incurred losses for the collectively evaluated loans as of the balance sheet date. The impact of the changes was not material individually or in the aggregate. | |||||||||||||||||||||||||||||
A summary of the activity in the allowance for loan and lease losses by portfolio segment is as follows: | |||||||||||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Direct | Total | |||||||||||||||||||||||||
real estate | and | and other | financing | ||||||||||||||||||||||||||
industrial | leases, net | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 10,693 | $ | 4,129 | $ | 371 | $ | 207 | $ | 15,400 | |||||||||||||||||||
Charge-offs | (896 | ) | (14 | ) | (4 | ) | — | (914 | ) | ||||||||||||||||||||
Recoveries | 353 | 11 | 5 | 5 | 374 | ||||||||||||||||||||||||
Provision | (1,095 | ) | 109 | (99 | ) | 126 | (959 | ) | |||||||||||||||||||||
Ending balance | $ | 9,055 | $ | 4,235 | $ | 273 | $ | 338 | $ | 13,901 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 209 | $ | 131 | $ | 62 | $ | — | $ | 402 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,846 | $ | 4,104 | $ | 211 | $ | 338 | $ | 13,499 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Loans and lease receivables: | |||||||||||||||||||||||||||||
Ending balance, gross | $ | 645,111 | $ | 293,552 | $ | 17,244 | $ | 26,065 | $ | 981,972 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 5,379 | $ | 8,043 | $ | 1,375 | $ | — | $ | 14,797 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 638,303 | $ | 285,509 | $ | 15,869 | $ | 26,065 | $ | 965,746 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 1,429 | $ | — | $ | — | $ | — | $ | 1,429 | |||||||||||||||||||
Allowance as % of gross loans | 1.4 | % | 1.44 | % | 1.58 | % | 1.3 | % | 1.42 | % | |||||||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Direct | Total | |||||||||||||||||||||||||
real estate | and | and other | financing | ||||||||||||||||||||||||||
industrial | leases, net | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 9,554 | $ | 3,977 | $ | 384 | $ | 240 | $ | 14,155 | |||||||||||||||||||
Charge-offs | (612 | ) | (2,739 | ) | (128 | ) | — | (3,479 | ) | ||||||||||||||||||||
Recoveries | 375 | 66 | 40 | — | 481 | ||||||||||||||||||||||||
Provision | 1,376 | 2,825 | 75 | (33 | ) | 4,243 | |||||||||||||||||||||||
Ending balance | $ | 10,693 | $ | 4,129 | $ | 371 | $ | 207 | $ | 15,400 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,244 | $ | 186 | $ | 87 | $ | — | $ | 1,517 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 9,449 | $ | 3,943 | $ | 284 | $ | 207 | $ | 13,883 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Loans and lease receivables: | |||||||||||||||||||||||||||||
Ending balance, gross | $ | 624,011 | $ | 256,458 | $ | 16,313 | $ | 15,926 | $ | 912,708 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,614 | $ | 2,842 | $ | 1,771 | $ | — | $ | 15,227 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 613,397 | $ | 253,616 | $ | 14,542 | $ | 15,926 | $ | 897,481 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Allowance as % of gross loans | 1.71 | % | 1.61 | % | 2.27 | % | 1.3 | % | 1.69 | % | |||||||||||||||||||
The Corporation’s net investment in direct financing leases consists of the following: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Minimum lease payments receivable | $ | 24,658 | $ | 12,951 | |||||||||||||||||||||||||
Estimated unguaranteed residual values in leased property | 4,546 | 4,366 | |||||||||||||||||||||||||||
Initial direct costs | 226 | 29 | |||||||||||||||||||||||||||
Less unearned lease and residual income | (3,365 | ) | (1,420 | ) | |||||||||||||||||||||||||
Investment in commercial direct financing leases | $ | 26,065 | $ | 15,926 | |||||||||||||||||||||||||
There were no impairments of residual value of leased property during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
The Corporation leases equipment under direct financing leases expiring in future years. Some of these leases provide for additional rents, based on use in excess of a stipulated minimum number of hours, and generally allow the lessees to purchase the equipment for fair value at the end of the lease term. | |||||||||||||||||||||||||||||
Future aggregate maturities of minimum lease payments to be received are as follows: | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Maturities during year ended December 31, | |||||||||||||||||||||||||||||
2014 | $ | 6,429 | |||||||||||||||||||||||||||
2015 | 5,332 | ||||||||||||||||||||||||||||
2016 | 4,256 | ||||||||||||||||||||||||||||
2017 | 3,214 | ||||||||||||||||||||||||||||
2018 | 2,494 | ||||||||||||||||||||||||||||
Thereafter | 2,933 | ||||||||||||||||||||||||||||
$ | 24,658 | ||||||||||||||||||||||||||||
Leasehold_Improvements_and_Equ
Leasehold Improvements and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Leasehold Improvements and Equipment | ' | ||||||||
Leasehold Improvements and Equipment | |||||||||
A summary of leasehold improvements and equipment at December 31, 2013 and 2012 is as follows: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Leasehold improvements | $ | 1,547 | $ | 1,263 | |||||
Furniture and equipment | 3,257 | 3,031 | |||||||
Construction and purchases in progress | — | 77 | |||||||
4,804 | 4,371 | ||||||||
Less: accumulated depreciation | (3,649 | ) | (3,403 | ) | |||||
Total leasehold improvements and equipment, net | $ | 1,155 | $ | 968 | |||||
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
Other Assets | |||||||||
The Corporation is a limited partner in several limited partnership investments. The Corporation is not the general partner, does not have controlling ownership, and is not the primary variable interest holder in any of these limited partnerships. The Corporation’s share of the partnerships’ income included in the consolidated statements of income for the years ended December 31, 2013 and 2012 was a loss of $437,000 and income of $678,000, respectively. The Corporation had an equity investment in Aldine Capital Fund, LP, a mezzanine fund, of $1.2 million and $2.0 million recorded as of December 31, 2013 and 2012, respectively. The Corporation had a remaining commitment to provide funds of $960,000 at December 31, 2013. In March 2013, the Corporation invested in Aldine Capital Fund II, LP (“Aldine II”), a mezzanine fund. As of December 31, 2013, the Corporation’s equity investment in Aldine II totaled $942,000. The Corporation had a remaining commitment to provide funds of $3.8 million at December 31, 2013. The Corporation also has one tax-preferred limited partnership equity investment, Chapel Valley Senior Housing, LP. At December 31, 2013 and 2012, there was a zero cost basis remaining in this tax-preferred limited partnership equity investment. | |||||||||
The Corporation is the sole owner of $315,000 of common securities issued by Trust II, a Delaware business trust. The purpose of Trust II was to complete the sale of $10.0 million of 10.50% fixed rate trust preferred securities. Trust II, a wholly owned subsidiary of the Corporation, was not consolidated into the financial statements of the Corporation. The investment in Trust II of $315,000 as of December 31, 2013 and 2012 is included in accrued interest receivable and other assets. | |||||||||
A summary of accrued interest receivable and other assets is as follows: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Accrued interest receivable | $ | 3,231 | $ | 3,217 | |||||
Deferred tax assets, net | 3,722 | 4,583 | |||||||
Investment in limited partnerships | 2,141 | 2,000 | |||||||
Investment in Trust II | 315 | 315 | |||||||
Fair value of interest rate swaps | 946 | 3,069 | |||||||
Prepaid expenses | 1,224 | 1,453 | |||||||
Other | 2,737 | 2,771 | |||||||
Total accrued interest receivable and other assets | $ | 14,316 | $ | 17,408 | |||||
Deposits
Deposits | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Deposits [Abstract] | ' | ||||||||||||||||||||||
Deposits | ' | ||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
The composition of deposits at December 31, 2013 and 2012 was as follows. Weighted average balances represent year-to-date averages. | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Balance | Weighted | Weighted | Balance | Weighted | Weighted | ||||||||||||||||||
average | average rate | average | average rate | ||||||||||||||||||||
balance | balance | ||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Non-interest-bearing transaction accounts | $ | 151,275 | $ | 138,920 | — | % | $ | 161,985 | $ | 137,117 | — | % | |||||||||||
Interest-bearing transaction accounts | 77,004 | 62,578 | 0.2 | 43,542 | 34,180 | 0.28 | |||||||||||||||||
Money market accounts | 456,065 | 450,558 | 0.53 | 443,743 | 395,259 | 0.76 | |||||||||||||||||
Certificates of deposit | 51,979 | 60,276 | 1.01 | 68,599 | 82,430 | 1.17 | |||||||||||||||||
Brokered certificates of deposit | 393,532 | 393,726 | 1.68 | 374,385 | 400,695 | 2.23 | |||||||||||||||||
Total deposits | $ | 1,129,855 | $ | 1,106,058 | 0.88 | $ | 1,092,254 | $ | 1,049,681 | 1.24 | |||||||||||||
A summary of annual maturities of certificates of deposit outstanding at December 31, 2013 follows: | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Maturities during the year ended December 31, | |||||||||||||||||||||||
2014 | $ | 173,077 | |||||||||||||||||||||
2015 | 117,382 | ||||||||||||||||||||||
2016 | 58,087 | ||||||||||||||||||||||
2017 | 31,571 | ||||||||||||||||||||||
2018 | 23,357 | ||||||||||||||||||||||
Thereafter | 42,037 | ||||||||||||||||||||||
$ | 445,511 | ||||||||||||||||||||||
Deposits include approximately $23.2 million and $35.6 million of certificates of deposit, including brokered deposits, which are denominated in amounts of $100,000 or more at December 31, 2013 and 2012, respectively. |
FHLB_Advances_Other_Borrowings
FHLB Advances, Other Borrowings and Junior Subordinated Notes | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||
FHLB Advances, Other Borrowings and Junior Subordinated Notes | ' | ||||||||||||||||||||||
FHLB Advances, Other Borrowings and Junior Subordinated Notes | |||||||||||||||||||||||
The composition of borrowed funds at December 31, 2013 and 2012 was as follows. Weighted average balances represent year-to-date averages. | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Balance | Weighted | Weighted | Balance | Weighted | Weighted | ||||||||||||||||||
average | average | average | average | ||||||||||||||||||||
balance | rate | balance | rate | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | — | $ | 260 | 0.74 | % | $ | — | $ | 237 | 0.82 | % | |||||||||||
FHLB advances | — | 6,471 | 0.19 | 469 | 2,034 | 1.59 | |||||||||||||||||
Line of credit | 10 | 10 | 3.41 | 10 | 1,666 | 4.07 | |||||||||||||||||
Subordinated notes payable | 11,926 | 11,926 | 6.92 | 11,926 | 37,481 | 7.02 | |||||||||||||||||
Junior subordinated notes | 10,315 | 10,315 | 10.78 | 10,315 | 10,315 | 10.81 | |||||||||||||||||
$ | 22,251 | $ | 28,982 | 6.78 | $ | 22,720 | $ | 51,733 | 7.46 | ||||||||||||||
Short-term borrowings | $ | 10 | $ | 479 | |||||||||||||||||||
Long-term borrowings | 22,241 | 22,241 | |||||||||||||||||||||
$ | 22,251 | $ | 22,720 | ||||||||||||||||||||
The Corporation’s FHLB advances fully matured in February 2013. At December 31, 2013 and 2012, there were no securities sold under agreements to repurchase. There were no outstanding federal funds purchased at any month-end during fiscal years December 31, 2013 and 2012. | |||||||||||||||||||||||
The Corporation has a $65.8 million FHLB line of credit available for advances and open line borrowings which is collateralized by mortgage-related securities, unencumbered first mortgage loans and secured small business loans as noted below. At December 31, 2013, $65.8 million of this line remained unused. There were no advances outstanding on the Corporation’s open line at December 31, 2013 and 2012. There were no Term FHLB advances outstanding at December 31, 2013. At December 31, 2012, Term FHLB advances totaled $469,000. The advances bore fixed interest rates which ranged from 5.91% to 6.06% at December 31, 2012. | |||||||||||||||||||||||
The Corporation is required to maintain, as collateral, mortgage-related securities and unencumbered first mortgage loans and secured small business loans in its portfolio aggregating at least the amount of outstanding advances from the FHLB. Loans totaling approximately $37.1 million and $35.4 million and collateralized mortgage obligations totaling approximately $39.5 million and $18.9 million were pledged as collateral for FHLB advances and unused available credit at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
The Corporation has a senior line of credit with a third-party financial institution of $10.5 million. As of December 31, 2013, the line of credit carried an interest rate of LIBOR + 2.75% with a floor of 3.25% and had certain performance debt covenants of which the Corporation was in compliance. The Corporation pays an unused line fee on its senior line of credit. For the years ended December 31, 2013 and 2012, the Corporation incurred $13,000 and $11,000 of additional interest expense due to this fee. On February 19, 2014, the credit line was renewed for one additional year with pricing terms of LIBOR + 2.75% with an interest rate floor of 3.25% and a maturity date of February 19, 2015. | |||||||||||||||||||||||
The Corporation has subordinated notes payable. At December 31, 2013 and 2012, the amount of subordinated notes payable outstanding was $11.9 million. The subordinated notes payable qualify for Tier 2 capital. At December 31, 2013, $5.7 million of the subordinated notes bore an interest rate of LIBOR + 4.75% with an interest rate floor of 6.00% and $6.2 million bore a fixed interest rate of 7.50%. There are no debt covenants on the subordinated notes payable. $5.7 million of the subordinated notes outstanding as of December 31, 2013 were held by a third party financial institution and mature on May 15, 2021. The remaining $6.2 million of the subordinated notes consists of notes which the Corporation offered and sold to certain accredited investors in 2012. The notes were structured to qualify as Tier 2 capital, mature on January 15, 2022 and bear a fixed interest rate of 7.50% per year for their entire term. The Corporation may, at its option, redeem the notes, in whole or part, at any time after the fifth anniversary of issuance. The Corporation used the net proceeds from the sale of the notes to repay a portion of its then-existing $39.0 million of other subordinated notes. In December 2012, the Corporation successfully raised approximately $29.1 million through the issuance of 1,265,000 shares of common stock at a price of $23.00 per share. The net proceeds of the offering, approximately $27.1 million, were immediately used to further repay a portion of its $39.0 million of subordinated notes outstanding at that time. On January 17, 2014 the Corporation repaid an additional $4.0 million of the third party financial institution subordinated notes. As of the filing of the 10-K, the outstanding balance of the third party financial institution debt was $1.7 million and total subordinated debt was $7.9 million. | |||||||||||||||||||||||
In September 2008, Trust II completed the sale of $10.0 million of 10.50% fixed rate trust preferred securities (“Preferred Securities”). Trust II also issued common securities of $315,000. Trust II used the proceeds from the offering to purchase $10.3 million of 10.50% Junior Subordinated Notes (“Notes”) of the Corporation. The Preferred Securities are mandatorily redeemable upon the maturity of the Notes on September 26, 2038. The Preferred Securities qualify under the risk-based capital guidelines as Tier 1 capital for regulatory purposes. Per the provisions of the Dodd-Frank Act, bank holding companies with total assets of less than $15 billion are not required to phase out trust preferred securities as an element of Tier 1 capital as other, larger institutions must. The Corporation used the proceeds from the sale of the Notes for general corporate purposes including providing additional capital to its subsidiaries. Debt issuance costs of approximately $428,000 were capitalized in 2008 and are amortizing over the life of the Notes as an adjustment to interest expense. As of December 31, 2013, $353,000 of debt issuance costs remain reflected in other assets on the consolidated balance sheets. | |||||||||||||||||||||||
The Corporation has the right to redeem the Notes at each interest payment date on or after September 26, 2013. The Corporation also has the right to redeem the Notes, in whole but not in part, after the occurrence of a special event. Special events are limited to: (1) a change in capital treatment resulting in the inability of the Corporation to include the Notes in Tier 1 capital, (2) a change in laws or regulations that could require Trust II to register as an investment company under The Investment Company Act of 1940, as amended; and (3) a change in laws or regulations that would require Trust II to pay income tax with respect to interest received on the Notes or, prohibit the Corporation from deducting the interest payable by the Corporation on the Notes or result in greater than a de minimis amount of taxes for Trust II. | |||||||||||||||||||||||
Trust II, a wholly owned subsidiary of the Corporation, was not consolidated into the financial statements of the Corporation. Therefore, the Corporation presents in its Consolidated Financial Statements junior subordinated notes as a liability and its investment in Trust II as a component of other assets. |
Stockholders_Equity_and_Regula
Stockholders' Equity and Regulatory Capital | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | |||||||||||||||||||||
Stockholders' Equity and Regulatory Capital | ' | |||||||||||||||||||||
Stockholders’ Equity and Regulatory Capital | ||||||||||||||||||||||
On June 5, 2008, the Board of Directors declared a dividend of one common share purchase right for each outstanding share of common stock, $0.01 par value per share (common shares), of the Corporation. The dividend was paid on July 15, 2008. Each right entitles the registered holder to purchase from the Corporation one-half of one common share, at a price of $85.00 per full common share (equivalent to $42.50 for each one-half of a common share), subject to adjustment. The rights will be exercisable only if a person or group acquires 15% or more of the Corporation’s common stock or announces a tender offer for such stock. Under conditions described in the Shareholder Rights Plan, holders of rights may acquire additional shares of the Corporation’s common stock. The value of shares acquired under the plan would have a market value of two times the then-current per share purchase price. The rights will expire on June 5, 2018. | ||||||||||||||||||||||
The Corporation and the Banks are subject to various regulatory capital requirements administered by Federal and State of Wisconsin banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Banks’ assets, liabilities and certain off-balance-sheet items as calculated under regulatory practices. The Corporation’s and the Banks’ capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Corporation continuously reviews and updates when appropriate its Capital and Liquidity Action Plan (the “Capital Plan”), which is designed to help ensure appropriate capital adequacy, to plan for future capital needs and to ensure that the Corporation serves as a source of financial strength to the Banks. The Corporation’s and the Banks’ Boards of Directors and management teams adhere to the appropriate regulatory guidelines on decisions which affect their capital position, including but not limited to, decisions relating to the payment of dividends and increasing indebtedness. | ||||||||||||||||||||||
As a bank holding company, the Corporation’s ability to pay dividends is affected by the policies and enforcement powers of the Federal Reserve. Federal Reserve guidance urges companies to strongly consider eliminating, deferring or significantly reducing dividends if: (i) net income available to common shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividend; (ii) the prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current prospective financial condition; or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital ratios. Management intends, when appropriate under regulatory guidelines, to consult with the Federal Reserve Bank of Chicago and provide it with information on the Corporation’s then-current and prospective earnings and capital position in advance of declaring any cash dividends. | ||||||||||||||||||||||
The Banks are also subject to certain legal, regulatory and other restrictions on their ability to pay dividends to the Corporation. As a bank holding company, the payment of dividends by the Banks to the Corporation is one of the sources of funds the Corporation could use to pay dividends, if any, in the future and to make other payments. Future dividend decisions by the Banks and the Corporation will continue to be subject to compliance with various legal, regulatory and other restrictions as defined from time to time. | ||||||||||||||||||||||
Qualitative measures established by regulation to ensure capital adequacy require the Corporation and the Banks to maintain minimum amounts and ratios of Total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. Tier 1 capital generally consists of stockholders’ equity plus certain qualifying debentures and other specified items less intangible assets such as goodwill. Risk-based capital requirements presently address credit risk related to both recorded and off-balance-sheet commitments and obligations. Management believes, as of December 31, 2013, that the Corporation and the Banks met all applicable capital adequacy requirements. | ||||||||||||||||||||||
As of December 31, 2013, the most recent notification from the FDIC and the WDFI categorized the Banks as well capitalized under the regulatory framework for prompt corrective action. | ||||||||||||||||||||||
The following table summarizes the Corporation’s and Banks’ capital ratios and the ratios required by their federal regulators at December 31, 2013 and 2012, respectively: | ||||||||||||||||||||||
Actual | Minimum Required for Capital | Minimum Required to Be Well | ||||||||||||||||||||
Adequacy Purposes | Capitalized Under Prompt | |||||||||||||||||||||
Corrective Action | ||||||||||||||||||||||
Requirements | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
Total capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 145,352 | 13.16 | % | $ | 88,373 | 8 | % | N/A | N/A | ||||||||||||
First Business Bank | 123,331 | 12.57 | 78,516 | 8 | $ | 98,145 | 10 | % | ||||||||||||||
First Business Bank – Milwaukee | 17,944 | 14.66 | 9,790 | 8 | 12,238 | 10 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 119,617 | 10.83 | $ | 44,186 | 4 | N/A | N/A | ||||||||||||||
First Business Bank | 111,062 | 11.32 | 39,258 | 4 | $ | 58,887 | 6 | |||||||||||||||
First Business Bank – Milwaukee | 16,414 | 13.41 | 4,895 | 4 | 7,343 | 6 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to average assets) | ||||||||||||||||||||||
Consolidated | $ | 119,617 | 9.35 | $ | 51,153 | 4 | N/A | N/A | ||||||||||||||
First Business Bank | 111,062 | 10.35 | 42,913 | 4 | $ | 53,641 | 5 | |||||||||||||||
First Business Bank – Milwaukee | 16,414 | 7.64 | 8,595 | 4 | 10,744 | 5 | ||||||||||||||||
Actual | Minimum Required for Capital | Minimum Required to Be Well | ||||||||||||||||||||
Adequacy Purposes | Capitalized Under Prompt | |||||||||||||||||||||
Corrective Action | ||||||||||||||||||||||
Requirements | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Total capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 132,042 | 12.97 | % | $ | 81,452 | 8 | % | N/A | N/A | ||||||||||||
First Business Bank | 115,613 | 12.73 | 72,640 | 8 | $ | 90,800 | 10 | % | ||||||||||||||
First Business Bank – Milwaukee | 15,743 | 14.6 | 8,626 | 8 | 10,783 | 10 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 107,356 | 10.54 | $ | 40,726 | 4 | N/A | N/A | ||||||||||||||
First Business Bank | 104,232 | 11.48 | 36,320 | 4 | $ | 54,480 | 6 | |||||||||||||||
First Business Bank – Milwaukee | 14,392 | 13.35 | 4,313 | 4 | 6,470 | 6 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to average assets) | ||||||||||||||||||||||
Consolidated | $ | 107,356 | 8.99 | $ | 47,750 | 4 | N/A | N/A | ||||||||||||||
First Business Bank | 104,232 | 10.49 | 39,731 | 4 | $ | 49,664 | 5 | |||||||||||||||
First Business Bank – Milwaukee | 14,392 | 6.72 | 8,563 | 4 | 10,703 | 5 | ||||||||||||||||
The following table reconciles stockholders’ equity to federal regulatory capital at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
Stockholders’ equity of the Corporation | $ | 109,275 | $ | 99,539 | ||||||||||||||||||
Unrealized and accumulated losses (gains) on specific items | 342 | (2,183 | ) | |||||||||||||||||||
Trust preferred securities | 10,000 | 10,000 | ||||||||||||||||||||
Tier 1 capital | 119,617 | 107,356 | ||||||||||||||||||||
Allowable general valuation allowances and subordinated debt | 25,735 | 24,686 | ||||||||||||||||||||
Risk-based capital | $ | 145,352 | $ | 132,042 | ||||||||||||||||||
Earnings_per_Common_Share
Earnings per Common Share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings per Common Share | ' | ||||||||
Earnings per Common Share | |||||||||
Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method. | |||||||||
In December 2012, the Corporation successfully completed a capital-raising transaction through the issuance of 1,265,000 shares of common stock at a price of $23.00. This stock issuance impacted the Corporation’s earnings per share by increasing the number of shares outstanding. | |||||||||
For the years ended December 31, 2013 and 2012, average anti-dilutive employee share-based awards totaled 77 and 115,236, respectively. | |||||||||
For the Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in Thousands, Except Share Data) | |||||||||
Basic earnings per common share | |||||||||
Net income | $ | 13,746 | $ | 8,926 | |||||
Less: earnings allocated to participating securities | 331 | 329 | |||||||
Basic earnings allocated to common shareholders | $ | 13,415 | $ | 8,597 | |||||
Weighted-average common shares outstanding, excluding participating securities | 3,832,296 | 2,608,961 | |||||||
Basic earnings per common share | $ | 3.5 | $ | 3.3 | |||||
Diluted earnings per common share | |||||||||
Earnings allocated to common shareholders | $ | 13,415 | $ | 8,597 | |||||
Reallocation of undistributed earnings | 2 | — | |||||||
Diluted earnings allocated to common shareholders | $ | 13,417 | $ | 8,597 | |||||
Weighted-average common shares outstanding, excluding participating securities | 3,832,296 | 2,608,961 | |||||||
Dilutive effect of share-based awards | 15,314 | 1,911 | |||||||
Weighted-average diluted common shares outstanding, excluding participating securities | 3,847,610 | 2,610,872 | |||||||
Diluted earnings per common share | $ | 3.49 | $ | 3.29 | |||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-Based Compensation | |||||||||||||||||
The Corporation adopted the 2012 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2012. The Plan is administered by the Compensation Committee of the Board of Directors of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options (together, “Stock Options”), restricted stock, restricted stock units and dividend equivalent units, and any other type of award permitted by the Plan. As of December 31, 2013, 198,949 shares were available for future grants under the Plan. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the Plan. The Corporation may issue new shares and shares from treasury for shares delivered under the Plan. | |||||||||||||||||
Stock Options | |||||||||||||||||
The Corporation may grant Stock Options to senior executives and other employees under the Plan. Stock Options generally have an exercise price that is equal to the fair value of the common shares on the date the option is awarded. Stock Options granted under the plans are subject to graded vesting, generally ranging from 4 years to 8 years, and have a contractual term of 10 years. For any new awards issued, compensation expense is recognized over the requisite service period for the entire award on a straight-line basis. No Stock Options were granted since the Corporation became a reporting company under the Securities Exchange Act of 1934 and no Stock Options have been modified, repurchased or cancelled since such time. For that reason, no stock-based compensation related to Stock Options was recognized in the Consolidated Financial Statements for the years ended December 31, 2013 and 2012. As of December 31, 2013, all Stock Options granted and not previously forfeited had vested. The benefits of tax deductions as a result of disqualifying dispositions upon exercise of stock options are recognized as a financing cash flow activity. | |||||||||||||||||
The following table represents a summary of Stock Options activity for the periods indicated. | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Options | Weighted | Options | Weighted | ||||||||||||||
average price | average price | ||||||||||||||||
Outstanding at beginning of year | 124,034 | $ | 22.43 | 125,034 | $ | 22.43 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | (69,684 | ) | 21.13 | (1,000 | ) | 22 | |||||||||||
Expired | (3,350 | ) | 22 | — | — | ||||||||||||
Forfeited | — | — | — | — | |||||||||||||
Outstanding at end of year | 51,000 | 24.24 | 124,034 | 22.43 | |||||||||||||
Options exercisable at end of year | 51,000 | 24.24 | 124,034 | 22.43 | |||||||||||||
The following table represents outstanding Stock Options and exercisable Stock Options at the respective ranges of exercise prices at December 31, 2013. | |||||||||||||||||
Options Outstanding | Exercisable | ||||||||||||||||
Range of exercise prices | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||
average | average | average | |||||||||||||||
remaining | exercise | exercise | |||||||||||||||
contractual | price | price | |||||||||||||||
life (years) | |||||||||||||||||
$24.00 - $24.99 | 39,000 | 0.8 | $ | 24 | 39,000 | $ | 24 | ||||||||||
$25.00 - $25.99 | 12,000 | 1.13 | 25 | 12,000 | 25 | ||||||||||||
51,000 | 0.88 | 24.24 | 51,000 | 24.24 | |||||||||||||
Restricted Stock | |||||||||||||||||
Under the Plan, the Corporation may grant restricted shares to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While the restricted shares are subject to forfeiture, the participant may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. The restricted shares granted under the Plan are subject to graded vesting. Compensation expense is recognized over the requisite service period of generally four years for the entire award on a straight-line basis. Upon vesting of restricted share awards, the benefit of tax deductions in excess of recognized compensation expense is recognized as a financing cash flow activity. | |||||||||||||||||
Restricted share activity for the years ended December 31, 2013 and 2012 was as follows: | |||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||
restricted | average | restricted | average | ||||||||||||||
shares | grant-date | shares | grant-date | ||||||||||||||
fair value | fair value | ||||||||||||||||
Nonvested balance at beginning of year | 94,506 | $ | 18.19 | 95,868 | $ | 15.15 | |||||||||||
Granted | 25,030 | 33 | 37,123 | 23.03 | |||||||||||||
Vested | (34,827 | ) | 16.88 | (35,905 | ) | 15.06 | |||||||||||
Forfeited | — | — | (2,580 | ) | 18.32 | ||||||||||||
Nonvested balance as of end of year | 84,709 | 23.1 | 94,506 | 18.19 | |||||||||||||
As of December 31, 2013, $1.7 million of deferred compensation expense was included in additional paid-in capital in the Consolidated Balance Sheets related to unvested restricted shares which the Corporation expects to recognize over approximately 2.7 years. As of December 31, 2013, all restricted shares that vested were delivered. For the years ended December 31, 2013 and 2012, share-based compensation expense included in the Consolidated Statements of Income totaled $660,000 and $548,000, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
The Corporation maintains a contributory 401(k) defined contribution plan covering substantially all employees. The Corporation matches 100% of amounts contributed by each participating employee up to 3.0% of the employee’s compensation. The Corporation may also make discretionary contributions up to an additional 6.0% of salary. Contributions are expensed in the period incurred and recorded in compensation expense in the consolidated statements of income. The Corporation made a matching contribution of 3.0% to all eligible employees which totaled $348,000 and $321,000 for the years ended December 31, 2013 and 2012, respectively. Discretionary contributions of 4.6%, or $533,000, and 5.0%, or $528,000, were made in 2013 and 2012, respectively. | |
As of December 31, 2013 and 2012, the Corporation had a deferred compensation plan under which it provided contributions to supplement the retirement income of one executive. Under the terms of the plan, benefits to be received are generally payable within six months of the date of the termination of employment with the Corporation. The expense associated with the deferred compensation plan in 2013 and 2012 was $81,000 and $58,000, respectively. The present value of future payments under the remaining plan of $647,000 and $566,000 at December 31, 2013 and 2012, respectively, is included in other liabilities. | |
The Corporation owned life insurance policies on the life of the executive covered by the deferred compensation plan, which had cash surrender values and death benefits of approximately $2.0 million and $5.7 million, respectively, at December 31, 2013 and cash surrender values and death benefits of approximately $1.9 million and $5.7 million, respectively, at December 31, 2012. The remaining balance of the cash surrender value of bank-owned life insurance of $21.1 million and $20.4 million as of December 31, 2013 and 2012, respectively, is related to policies on a number of then-qualified individuals affiliated with the Banks. |
Leases
Leases | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Leases | ' | |||
Leases | ||||
The Corporation and FBB occupy space in Madison, WI under an operating lease agreement that expires on July 7, 2028. FBB has three loan production offices in Appleton, WI, Oshkosh, WI, and Green Bay, WI, that occupy office space under separate operating lease agreements that expire on November 30, 2017, January 31, 2018, and March 31, 2014, respectively. FBB – Milwaukee occupies office space under an operating lease agreement that expires on November 30, 2020. The Corporation’s total rent expense was $1.2 million for both years ended December 31, 2013 and 2012, respectively. Rent expense is recognized on a straight-line basis. The Corporation also leases other office equipment. Rental expense for these operating leases was $29,000 and $27,000 for the years ended December 31, 2013 and 2012, respectively. | ||||
Future minimum lease payments for noncancelable operating leases for each of the five succeeding years and thereafter are as follows: | ||||
(In Thousands) | ||||
2014 | $ | 706 | ||
2015 | 678 | |||
2016 | 645 | |||
2017 | 613 | |||
2018 | 558 | |||
Thereafter | 4,885 | |||
$ | 8,085 | |||
Other_Operating_Expenses
Other Operating Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Operating Expenses [Abstract] | ' | ||||||||
Other Income and Other Expense Disclosure | ' | ||||||||
Other Operating Expenses | |||||||||
A summary of other operating expenses for the years ended December 31, 2013 and 2012 is as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Endowment to First Business Charitable Foundation | $ | 1,300 | $ | — | |||||
General and administrative expenses | 938 | 912 | |||||||
Travel and other employee expenses | 877 | 903 | |||||||
Computer software expenses | 677 | 446 | |||||||
Partnership loss (income) | 437 | (678 | ) | ||||||
Foreclosed properties expenses | 185 | 589 | |||||||
Other expenses | 240 | 562 | |||||||
Total other operating expenses | $ | 4,654 | $ | 2,734 | |||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
Income tax expense applicable to income for the years ended December 31, 2013 and 2012 consists of the following: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Current: | |||||||||
Federal | $ | 3,605 | $ | 5,473 | |||||
State | 1,356 | 1,183 | |||||||
Current tax expense | 4,961 | 6,656 | |||||||
Deferred: | |||||||||
Federal | 2,257 | (1,756 | ) | ||||||
State | 171 | (150 | ) | ||||||
Deferred tax expense (benefit) | 2,428 | (1,906 | ) | ||||||
Total income tax expense | $ | 7,389 | $ | 4,750 | |||||
Deferred income tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax basis. Net deferred tax assets are included in other assets in the consolidated balance sheets. | |||||||||
The significant components of the Corporation’s deferred tax assets and liabilities are as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Deferred tax assets: | |||||||||
Allowance for loan and lease losses | $ | 5,372 | $ | 5,890 | |||||
Deferred compensation | 1,144 | 1,139 | |||||||
State net operating loss carryforwards | 730 | 712 | |||||||
Write-down of foreclosed properties | — | 188 | |||||||
Non-accrual loan interest | 733 | 863 | |||||||
Capital loss carryforwards | 35 | 35 | |||||||
Unrealized loss on securities | 215 | — | |||||||
Other | 486 | 505 | |||||||
Total deferred tax assets before valuation allowance | 8,715 | 9,332 | |||||||
Valuation allowance | (67 | ) | (8 | ) | |||||
Total deferred tax assets | 8,648 | 9,324 | |||||||
Deferred tax liabilities: | |||||||||
Leasing and fixed asset activities | 4,803 | 3,266 | |||||||
Unrealized gain on securities | — | 1,352 | |||||||
Other | 123 | 123 | |||||||
Total deferred tax liabilities | 4,926 | 4,741 | |||||||
Net deferred tax asset | $ | 3,722 | $ | 4,583 | |||||
The tax effects of unrealized gains and losses on derivative instruments and unrealized gains and losses on securities are components of other comprehensive income. A reconciliation of the change in net deferred tax assets to deferred tax expense follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Change in net deferred tax assets | $ | (861 | ) | $ | 2,101 | ||||
Deferred taxes allocated to other comprehensive income | (1,567 | ) | (195 | ) | |||||
Deferred income tax (expense) benefit | $ | (2,428 | ) | $ | 1,906 | ||||
The Corporation had state net operating loss carryforwards of approximately $14.1 million and $13.6 million at December 31, 2013 and 2012, respectively, which can be used to offset future state taxable income. The carryforwards expire between 2023 and 2032. A valuation allowance has been established for the future benefits attributable to certain of the state net operating losses. The valuation allowance associated with these deferred tax assets was $67,000 and $8,000 as of December 31, 2013 and 2012, respectively. On June 26, 2011, the State of Wisconsin 2011-2013 Budget Bill, Assembly Bill 40, was signed into law. The bill provides that, starting with the first taxable year beginning after December 31, 2011, and thereafter for the next 19 years, a combined group member that has pre-2009 net business loss carryforwards can, after first using such net business loss carryforwards to offset its own income for the taxable year and after using shared losses, use up to five percent of the pre-2009 net business loss carryforwards to offset the Wisconsin income of their group members on a proportionate basis. These net business loss carryforwards can be used to the extent the income is attributable to the group’s unitary business. If the five percent cannot fully be used, the remainder can be added to the portion that may offset the Wisconsin income of all other combined group members in a subsequent year, until it is completely used or expired. The Corporation believes it will be able to fully utilize its Wisconsin state net operating losses under this law and therefore no valuation allowance has been established on its Wisconsin state net operating losses. | |||||||||
Realization of the deferred tax asset over time is dependent upon the Corporation generating sufficient taxable earnings in future periods. In determining that realizing the deferred tax was more likely than not, the Corporation gave consideration to a number of factors including its recent earnings history, its expected earnings in the future, appropriate tax planning strategies and expiration dates associated with operating loss carry forwards. | |||||||||
The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars In Thousands) | |||||||||
Income before income tax expense | $ | 21,135 | $ | 13,676 | |||||
Tax expense at statutory federal rate of 34.43% and 34% applied to income before income tax expense, respectively | $ | 7,275 | $ | 4,650 | |||||
State income tax, net of federal effect | 906 | 647 | |||||||
Tax-exempt security and loan income, net of TEFRA adjustments | (682 | ) | (431 | ) | |||||
Change in valuation allowance | 59 | (3 | ) | ||||||
Bank-owned life insurance | (291 | ) | (239 | ) | |||||
Other | 122 | 126 | |||||||
Total income tax expense | $ | 7,389 | $ | 4,750 | |||||
Effective tax rate | 34.96 | % | 34.73 | % | |||||
As of both December 31, 2013 and 2012, the summary of all of the Corporation’s uncertain tax positions totaled $16,000. There were no significant additions to or reductions from these uncertain tax positions for the year ended December 31, 2013. In addition, there were no settlements of uncertain tax positions. As of December 31, 2013, tax years remaining open for the State of Wisconsin tax were 2010 through 2012. Federal tax years that remained open were 2010 through 2012. As of December 31, 2013, there were no unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
Derivative Financial Instruments | |||||||||||||
The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not designated as accounting hedge relationships and are marked-to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value primarily offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considered the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees. | |||||||||||||
At December 31, 2013, the aggregate amortizing notional value of interest rate swaps with various commercial borrowers was $31.4 million. The Corporation receives fixed rates and pays floating rates based upon LIBOR on the swaps with commercial borrowers. These interest rate swaps mature in January, 2014 through February, 2023. Commercial borrower swaps are completed independently with each borrower and are not subject to master netting arrangements. These commercial borrower swaps were reported on the Consolidated Balance Sheets as a derivative asset of $528,000, included in accrued interest receivable and other assets, and as a derivative liability of $918,000, included in accrued interest payable and other liabilities. In the event of default on a commercial borrower interest rate swap by the counterparty, a right of offset exists to allow for the commercial borrower to set off amounts due against the related commercial loan. As of December 31, 2013, no interest rate swaps were in default and therefore all values for the commercial borrower swaps are recorded on a gross basis within the Corporation’s Consolidated Balance Sheets. | |||||||||||||
At December 31, 2013, the aggregate amortizing notional value of interest rate swaps with dealer counterparties was also $31.4 million. The Corporation pays fixed rates and receives floating rates based upon LIBOR on the swaps with dealer counterparties. These interest rate swaps mature in January, 2014 through February, 2023. Dealer counterparty swaps are subject to master netting agreements among the contracts within each of our banks and are reported on the Consolidated Balance Sheets as a derivative asset of $418,000 and a net derivative liability of $28,000. The value of these swaps was included in accrued interest payable and other liabilities as of December 31, 2013. The gross amount of dealer counterparty swaps, without regard to the enforceable master netting agreement, was a gross derivative liability of $528,000 and $918,000 gross derivative asset. No right of offset exists with the dealer counterparty swaps. | |||||||||||||
The table below provides information about the location and fair value of the Corporation’s derivative instruments as of December 31, 2013 and 2012. | |||||||||||||
Interest Rate Swap Contracts | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
(In Thousands) | |||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||
December 31, 2013 | Other assets | $ | 946 | Other liabilities | $ | 946 | |||||||
December 31, 2012 | Other assets | $ | 3,069 | Other liabilities | $ | 3,069 | |||||||
No derivative instruments held by the Corporation for the year ended December 31, 2013 were considered hedging instruments. All changes in the fair value of these instruments are recorded in other non-interest income. Given the mirror-image terms of the outstanding derivative portfolio, the change in fair value for the year ended December 31, 2013 and 2012 had an insignificant impact to the audited Consolidated Statements of Income. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
Commitments and Contingencies | |||||||||
The Banks are party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of clients. These financial instruments include commitments to extend credit and standby letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Financial Statements. The contract amounts reflect the extent of involvement the Banks have in these particular classes of financial instruments. | |||||||||
In the event of non-performance, the Banks’ exposure to credit loss for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Banks use the same credit policies in making commitments and conditional obligations as they do for instruments reflected in the Consolidated Financial Statements. An accrual for credit losses on financial instruments with off-balance-sheet risk would be recorded separate from any valuation account related to any such recognized financial instrument. As of December 31, 2013 and 2012, there were no accrued credit losses for financial instruments with off-balance-sheet risk. | |||||||||
Financial instruments whose contract amounts represent potential credit risk at December 31, 2013 and 2012, respectively, are as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Commitments to extend credit, primarily commercial loans | $ | 282,581 | $ | 257,150 | |||||
Standby letters of credit | 19,602 | 17,840 | |||||||
Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition in the contract. Commitments generally have fixed expiration dates or other termination clauses and may have a fixed interest rate or a rate which varies with the prime rate or other market indices and may require payment of a fee. Since some commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements of the Banks. The Banks evaluate the creditworthiness of each client on a case-by-case basis and generally extend credit only on a secured basis. Collateral obtained varies but consists primarily of commercial real estate, accounts receivable, inventory, equipment, and securities. There is generally no market for commercial loan commitments, the fair value of which would approximate the present value of any fees expected to be received as a result of the commitment. These are not considered to be material to the financial statements. | |||||||||
Standby letters of credit are conditional commitments issued by the Banks to guarantee the performance of a client to a third party. Generally, standby letters of credit expire within one year and are collateralized by accounts receivable, equipment, inventory, and commercial properties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. The fair value of standby letters of credit is recorded as a liability when the standby letter of credit is issued. The fair value has been estimated to approximate the fees received by the Banks for issuance. The fees are recorded into income and the fair value of the guarantee is decreased ratably over the term of the standby letter of credit. | |||||||||
In the normal course of business, various legal proceedings involving the Corporation are pending. Management, based upon advice from legal counsel, does not anticipate any significant losses as a result of these actions. Management believes that any liability arising from any such proceedings currently existing or threatened will not have a material adverse effect on the Corporation’s financial position, results of operations, and cash flows. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value | ' | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
The Corporation determines the fair market values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk such as nonperformance risk in liability fair values and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. | |||||||||||||||||||||
Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. | |||||||||||||||||||||
Level 2 — Level 2 inputs are inputs other than quoted prices included with Level 1 that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||
Level 3 — Level 3 inputs are inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | |||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Municipal obligations | $ | — | $ | 15,489 | $ | — | $ | 15,489 | |||||||||||||
Asset backed securities | — | 1,494 | — | 1,494 | |||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | — | 16,244 | — | 16,244 | |||||||||||||||||
Collateralized mortgage obligations - government issued | — | 111,969 | — | 111,969 | |||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | — | 34,922 | — | 34,922 | |||||||||||||||||
Interest rate swaps | — | 946 | — | 946 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | $ | — | $ | 946 | $ | — | $ | 946 | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Municipal obligations | $ | — | $ | 12,033 | $ | — | $ | 12,033 | |||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | — | 19,721 | — | 19,721 | |||||||||||||||||
Collateralized mortgage obligations - government issued | — | 151,645 | — | 151,645 | |||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | — | 17,197 | — | 17,197 | |||||||||||||||||
Interest rate swaps | — | 3,069 | — | 3,069 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | $ | — | $ | 3,069 | $ | — | $ | 3,069 | |||||||||||||
For assets and liabilities measured at fair value on a recurring basis, there were no transfers between the levels during the years ended December 31, 2013 or 2012 related to the above measurements. | |||||||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: | |||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||
Fair Value Measurements Using | Total | ||||||||||||||||||||
Gains | |||||||||||||||||||||
Balance at December 31, 2013 | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Impaired loans | $ | 13,719 | $ | — | $ | 13,666 | $ | 53 | $ | — | |||||||||||
Foreclosed properties | 333 | — | 333 | — | (59 | ) | |||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||
Fair Value Measurements Using | Total | ||||||||||||||||||||
Gains | |||||||||||||||||||||
Balance at December 31, 2012 | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Impaired loans | $ | 8,544 | $ | — | $ | 6,770 | $ | 1,774 | $ | — | |||||||||||
Foreclosed properties | 1,574 | 529 | 982 | 63 | (600 | ) | |||||||||||||||
Impaired loans that are collateral dependent were written down to their fair value less costs to sell of $13.7 million and $8.5 million at December 31, 2013 and December 31, 2012, respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value. Valuation techniques consistent with the market approach, income approach, or cost approach were used to measure fair value and primarily included observable inputs for the individual impaired loans being evaluated such as current appraisals, recent sales of similar assets or other observable market data. In cases where such inputs were unobservable, specifically discounts applied to appraisal values to adjust such values to current market conditions or to reflect net realizable value, the impaired loan balance is reflected within Level 3 of the hierarchy. The quantification of unobservable inputs for Level 3 values range from 19% - 100%. The weighted average of those unobservable inputs as of the measurement date of December 31, 2013 was 64%. The majority of the impaired loans in the Level 3 category are considered collateral dependent loans. | |||||||||||||||||||||
Non-financial assets subject to measurement at fair value on a non-recurring basis included foreclosed properties. Foreclosed properties, upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan and lease losses, if deemed necessary, based upon the fair value of the foreclosed property. The fair value of a foreclosed property, upon initial recognition, is estimated using a market approach or Level 2 inputs based on observable market data, typically an appraisal, or Level 3 inputs based upon assumptions specific to the individual property or equipment. Level 3 inputs typically include unobservable inputs such as management applied discounts used to further reduce values to a net realizable value and may be used in situations when observable inputs become stale. Foreclosed property fair value inputs may transition to Level 1 upon receipt of an accepted offer for the sale of the related foreclosed property. As of December 31, 2013, there were no foreclosed properties supported by a Level 3 valuation. Subsequent impairments of foreclosed properties are recorded as a loss on foreclosed properties. During the year ended December 31, 2013, $1.4 million of outstanding loans were transferred to foreclosed properties. Based upon an evaluation of value of certain of the Corporation’s foreclosed properties, impairment losses of $59,000 on foreclosed properties were recognized for the year ended December 31, 2013. The activity of the Corporation’s foreclosed properties is summarized as follows: | |||||||||||||||||||||
As of and for the Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Foreclosed properties at the beginning of the period | $ | 1,574 | $ | 2,236 | |||||||||||||||||
Loans transferred to foreclosed properties, at lower of cost or fair value | 1,381 | 1,511 | |||||||||||||||||||
Payments to priority lien holders of foreclosed properties | — | 367 | |||||||||||||||||||
Proceeds from sale of foreclosed properties | (2,739 | ) | (1,955 | ) | |||||||||||||||||
Net gain on sale of foreclosed properties | 176 | 15 | |||||||||||||||||||
Impairment valuation | (59 | ) | (600 | ) | |||||||||||||||||
Foreclosed properties at the end of the period | $ | 333 | $ | 1,574 | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 81,286 | $ | 81,295 | $ | 66,266 | $ | 4,029 | $ | 11,000 | |||||||||||
Securities available-for-sale | 180,118 | 180,118 | — | 180,118 | — | ||||||||||||||||
Loans and lease receivables, net | 967,050 | 963,937 | — | 13,666 | 950,271 | ||||||||||||||||
Federal Home Loan Bank stock | 1,255 | 1,255 | — | — | 1,255 | ||||||||||||||||
Cash surrender value of life insurance | 23,142 | 23,142 | 23,142 | — | — | ||||||||||||||||
Accrued interest receivable | 3,231 | 3,231 | 3,231 | — | — | ||||||||||||||||
Interest rate swaps | 946 | 946 | — | 946 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 1,129,855 | $ | 1,131,002 | $ | 684,344 | $ | 446,658 | $ | — | |||||||||||
Federal Home Loan Bank and other borrowings | 11,936 | 11,979 | — | 11,979 | — | ||||||||||||||||
Junior subordinated notes | 10,315 | 7,084 | — | — | 7,084 | ||||||||||||||||
Interest rate swaps | 946 | 946 | — | 946 | — | ||||||||||||||||
Accrued interest payable | 1,052 | 1,052 | 1,052 | — | — | ||||||||||||||||
Off balance sheet items: | |||||||||||||||||||||
Standby letters of credit | 219 | 219 | — | — | 219 | ||||||||||||||||
Commitments to extend credit | — | * | * | * | * | ||||||||||||||||
*Not meaningful | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 85,586 | $ | 85,595 | $ | 74,940 | $ | 5,155 | $ | 5,500 | |||||||||||
Securities available-for-sale | 200,596 | 200,596 | — | 200,596 | — | ||||||||||||||||
Loans and lease receivables, net | 896,560 | 905,501 | — | 6,770 | 898,731 | ||||||||||||||||
Federal Home Loan Bank stock | 1,144 | 1,144 | — | — | 1,144 | ||||||||||||||||
Cash surrender value of life insurance | 22,272 | 22,272 | 22,272 | — | — | ||||||||||||||||
Accrued interest receivable | 3,217 | 3,217 | 3,217 | — | — | ||||||||||||||||
Interest rate swaps | 3,069 | 3,069 | — | 3,069 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 1,092,254 | $ | 1,102,316 | $ | 649,346 | $ | 452,970 | $ | — | |||||||||||
Federal Home Loan Bank and other borrowings | 12,405 | 13,170 | — | 13,170 | — | ||||||||||||||||
Junior subordinated notes | 10,315 | 7,046 | — | — | 7,046 | ||||||||||||||||
Interest rate swaps | 3,069 | 3,069 | — | 3,069 | — | ||||||||||||||||
Accrued interest payable | 1,711 | 1,711 | 1,711 | — | — | ||||||||||||||||
Off balance sheet items: | |||||||||||||||||||||
Standby letters of credit | 197 | 197 | — | — | 197 | ||||||||||||||||
Commitments to extend credit | — | * | * | * | * | ||||||||||||||||
*Not meaningful | |||||||||||||||||||||
Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the Consolidated Balance Sheets. 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. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation. | |||||||||||||||||||||
Cash and cash equivalents: The carrying amounts reported for cash and due from banks, interest bearing deposits held by the Corporation, accrued interest receivable and accrued interest payable approximate fair value because of their immediate availability and because they do not present unanticipated credit concerns. The carrying value of commercial paper, included in the cash and cash equivalents category, approximates fair value due to the short-term maturity structure of the instrument. As of December 31, 2013 and 2012, the Corporation held $11.0 million and $5.5 million, respectively, of commercial paper. The fair value of commercial paper is considered a Level 3 input due to the lack of available independent pricing sources. The carrying value of brokered certificates of deposit purchased is equivalent to purchase price of the instrument as the Corporation has not elected a fair value option for these instruments. The fair value of brokered certificates of deposits purchased is based on the discounted value of contractual cash flows using a discount rate reflective of rates currently offered for deposits of similar remaining maturities. As of December 31, 2013 and 2012, the Corporation held $4.0 million and $5.1 million, respectively, of brokered certificates of deposits. | |||||||||||||||||||||
Securities: The fair value measurements of investment securities are determined by a third party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. On a sample basis, the fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. In addition, the Corporation reviews the third-party valuation methodology on a periodic basis. Any significant differences in valuation are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy. | |||||||||||||||||||||
Loans and Leases: The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts that the Corporation believes are consistent with liquidity discounts in the market place. Fair values are estimated for portfolios of loans with similar financial characteristics. The fair value of performing and nonperforming loans is calculated by discounting scheduled and expected cash flows through the estimated maturity using estimated market rates that reflect the credit and interest rate risk inherent in the portfolio of loans and then applying a discount factor based upon the embedded credit risk of the loan and the fair value of collateral securing nonperforming loans when the loan is collateral dependent. The estimate of maturity is based on the Banks’ historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions. Significant unobservable inputs include, but are not limited to, discounts (investor yield premiums) applied to fair value calculations to further determine the exit price value of a portfolio of loans. | |||||||||||||||||||||
Federal Home Loan Bank Stock: The carrying amount of FHLB stock equals its fair value because the shares may be redeemed by the FHLB at their carrying amount of $100 per share. | |||||||||||||||||||||
Cash Surrender Value of Life Insurance: The carrying amount of cash surrender value of life insurance approximates its fair value as the carrying value represents the current settlement amount. | |||||||||||||||||||||
Deposits: The fair value of deposits with no stated maturity, such as demand deposits and money market accounts, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the intangible value that results from the funding provided by deposit liabilities compared to borrowing funds in the market. | |||||||||||||||||||||
Borrowed Funds: Market rates currently available to the Corporation and Banks for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. | |||||||||||||||||||||
Financial Instruments with Off-Balance-Sheet Risks: The fair value of the Corporation’s off-balance-sheet instruments is based on quoted market prices and fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the credit standing of the related counterparty. Commitments to extend credit and standby letters of credit are generally not marketable. Furthermore, interest rates on any amounts drawn under such commitments would generally be established at market rates at the time of the draw. Fair value would principally derive from the present value of fees received for those products. | |||||||||||||||||||||
Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. | |||||||||||||||||||||
Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||||||
Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and were not considered in the estimates. |
Condensed_Parent_Only_Financia
Condensed Parent Only Financial Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||
Condensed Parent Only Financial Information | ' | ||||||||
Condensed Parent Only Financial Information | |||||||||
The following represents the condensed financial information of FBFS - Only: | |||||||||
Condensed Balance Sheets | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 4,855 | $ | 1,032 | |||||
Investments in subsidiaries, at equity | 127,450 | 121,122 | |||||||
Leasehold improvements and equipment, net | 789 | 475 | |||||||
Other assets | 1,921 | 2,199 | |||||||
Total assets | $ | 135,015 | $ | 124,828 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Borrowed funds | $ | 22,251 | $ | 22,251 | |||||
Other liabilities | 3,489 | 3,038 | |||||||
Total liabilities | 25,740 | 25,289 | |||||||
Stockholders’ equity | 109,275 | 99,539 | |||||||
Total liabilities and stockholders’ equity | $ | 135,015 | $ | 124,828 | |||||
Condensed Statements of Income | |||||||||
For the Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Interest income | $ | — | $ | — | |||||
Interest expense | 1,952 | 3,825 | |||||||
Net interest expense | (1,952 | ) | (3,825 | ) | |||||
Non-interest income | |||||||||
Consulting and rental income from consolidated subsidiaries | 9,738 | 8,904 | |||||||
Other | 34 | 34 | |||||||
Total non-interest income | 9,772 | 8,938 | |||||||
Non-interest expense | 10,558 | 9,615 | |||||||
Loss before income tax benefit and equity in undistributed net income of consolidated subsidiaries | (2,738 | ) | (4,502 | ) | |||||
Income tax benefit | (1,050 | ) | (1,722 | ) | |||||
Loss before equity in undistributed net income of consolidated subsidiaries | (1,688 | ) | (2,780 | ) | |||||
Equity in undistributed net income of consolidated subsidiaries | 15,434 | 11,706 | |||||||
Net income | $ | 13,746 | $ | 8,926 | |||||
Condensed Statements of Cash Flows | |||||||||
For the Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Operating activities | |||||||||
Net income | $ | 13,746 | $ | 8,926 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||
Equity in undistributed earnings of consolidated subsidiaries | (15,434 | ) | (11,706 | ) | |||||
Share-based compensation | 311 | 254 | |||||||
Excess tax benefit from share-based compensation | (145 | ) | (47 | ) | |||||
Increase (decrease) in other liabilities | 867 | (1,131 | ) | ||||||
Other, net | (34 | ) | (297 | ) | |||||
Net cash used in operating activities | (689 | ) | (4,001 | ) | |||||
Investing activities | |||||||||
Dividends received from subsidiaries | 8,000 | 6,000 | |||||||
Capital contributions to subsidiaries | (850 | ) | — | ||||||
Net provided by investing activities | 7,150 | 6,000 | |||||||
Financing activities | |||||||||
Net decrease in short-term borrowed funds | — | (800 | ) | ||||||
Proceeds from issuance of long-term debt | — | 6,215 | |||||||
Repayment of long-term debt | — | (33,289 | ) | ||||||
Proceeds from issuance of common stock | — | 27,074 | |||||||
Proceeds from exercise of stock options | 1,474 | 22 | |||||||
Purchase of treasury stock | (1,782 | ) | (216 | ) | |||||
Excess tax benefit from share-based compensation | 145 | 47 | |||||||
Dividends paid | (2,475 | ) | (738 | ) | |||||
Net cash used in financing activities | (2,638 | ) | (1,685 | ) | |||||
Increase in cash and cash equivalents | 3,823 | 314 | |||||||
Cash and cash equivalents at the beginning of the period | 1,032 | 718 | |||||||
Cash and cash equivalents at the end of the period | $ | 4,855 | $ | 1,032 | |||||
Condensed_Quarterly_Earnings_u
Condensed Quarterly Earnings (unaudited) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Condensed Quarterly Earnings (unaudited) | ' | ||||||||||||||||||||||||||||||||
Condensed Quarterly Earnings (unaudited) | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
(Dollars in Thousands, Except per share data) | |||||||||||||||||||||||||||||||||
Interest income | $ | 13,319 | $ | 13,142 | $ | 13,586 | $ | 13,763 | $ | 13,633 | $ | 13,943 | $ | 14,032 | $ | 13,158 | |||||||||||||||||
Interest expense | (3,090 | ) | (2,949 | ) | (2,887 | ) | (2,779 | ) | (4,707 | ) | (4,334 | ) | (4,117 | ) | (3,727 | ) | |||||||||||||||||
Net interest income | 10,229 | 10,193 | 10,699 | 10,984 | 8,926 | 9,609 | 9,915 | 9,431 | |||||||||||||||||||||||||
Provision for loan losses | (80 | ) | (54 | ) | (109 | ) | 1,202 | (504 | ) | (2,045 | ) | (850 | ) | (844 | ) | ||||||||||||||||||
Non-interest income | 1,953 | 2,174 | 2,124 | 2,191 | 1,850 | 1,904 | 2,249 | 2,696 | |||||||||||||||||||||||||
Non-interest expense | (7,178 | ) | (7,490 | ) | (7,147 | ) | (8,556 | ) | (6,832 | ) | (7,132 | ) | (7,251 | ) | (7,446 | ) | |||||||||||||||||
Income before income tax expense | 4,924 | 4,823 | 5,567 | 5,821 | 3,440 | 2,336 | 4,063 | 3,837 | |||||||||||||||||||||||||
Income taxes | (1,680 | ) | (1,690 | ) | (1,958 | ) | (2,061 | ) | (1,230 | ) | (771 | ) | (1,441 | ) | (1,308 | ) | |||||||||||||||||
Net income | $ | 3,244 | $ | 3,133 | $ | 3,609 | $ | 3,760 | $ | 2,210 | $ | 1,565 | $ | 2,622 | $ | 2,529 | |||||||||||||||||
Per common share data: | |||||||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.83 | $ | 0.8 | $ | 0.92 | $ | 0.95 | $ | 0.84 | $ | 0.6 | $ | 0.99 | $ | 0.86 | |||||||||||||||||
Diluted earnings per common share | 0.83 | 0.8 | 0.91 | 0.95 | 0.84 | 0.6 | 0.99 | 0.86 | |||||||||||||||||||||||||
Dividends declared per share | 0.14 | 0.14 | 0.14 | 0.14 | 0.07 | 0.07 | 0.07 | 0.07 | |||||||||||||||||||||||||
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Accounting | ' |
Nature of Operations. The accounting and reporting practices of First Business Financial Services, Inc. (the “Corporation”), its wholly-owned subsidiaries, First Business Bank (“FBB”) and First Business Bank – Milwaukee (“FBB – Milwaukee”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). FBB and FBB – Milwaukee are sometimes referred to together as the “Banks.” FBB operates as a commercial banking institution in the Madison, Wisconsin market, consisting primarily of Dane County and the surrounding areas, with loan production offices in Oshkosh, Appleton, and Green Bay, Wisconsin. FBB also offers trust and investment services through First Business Trust & Investments (“FBTI”), a division of FBB. FBB – Milwaukee operates as a commercial banking institution in the Milwaukee, Wisconsin market, consisting primarily of Waukesha County and the surrounding areas. The Banks provide a full range of financial services to businesses, business owners, executives, professionals and high net worth individuals. The Banks are subject to competition from other financial institutions and service providers and are also subject to state and federal regulations. FBB has the following wholly-owned subsidiaries: First Business Capital Corp. (“FBCC”), First Madison Investment Corp. (“FMIC”), First Business Equipment Finance, LLC (“FBEF”) and FBB Real Estate, LLC (“FBBRE”). FMIC is located in and was formed under the laws of the state of Nevada. FBB-Milwaukee has one subsidiary, FBB – Milwaukee Real Estate, LLC (“FBBMRE”). | |
Principles of Consolidation | ' |
Basis of Financial Statement Presentation. The Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 810, the Corporation’s ownership interest in FBFS Statutory Trust II (“Trust II”) has not been consolidated into the financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
Management of the Corporation is required 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 as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could experience significant changes in the near-term include the value of foreclosed property, lease residuals, property under operating leases, securities, income taxes and the level of the allowance for loan and lease losses. | |
Reclassification | ' |
Certain amounts in prior periods may have been reclassified to conform to current presentation. | |
Subsequent Events | ' |
Subsequent events have been evaluated through the issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents. The Corporation considers federal funds sold, interest-bearing deposits and short-term investments that have original maturities of three months or less to be cash equivalents. | |
Securities Available-for-Sale | ' |
Securities Available-for-Sale. The Corporation classifies its investment and mortgage-related securities as available-for-sale, held-to-maturity and trading. Debt securities that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity and are stated at amortized cost. Debt and equity securities bought expressly for the purpose of selling in the near term are classified as trading securities and are measured at fair value with unrealized gains and losses reported in earnings. Debt and equity securities not classified as held-to-maturity or as trading are classified as available-for-sale. Available-for-sale securities are measured at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity, net of tax. Realized gains and losses, and declines in value judged to be other than temporary, are included in the consolidated statements of income as a component of non-interest income. The cost of securities sold is based on the specific identification method. The Corporation did not hold any held-to-maturity or trading securities at December 31, 2013 and 2012. | |
Discounts and premiums on investment and mortgage-backed securities are accreted and amortized into interest income using the effective yield method over the weighted average life of the securities. | |
Declines in the fair value of investment securities available for sale (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the securities is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) the Corporation has the intent to sell a security; (2) it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis; or (3) the Corporation does not expect to recover the entire amortized cost basis of the security. If the Corporation intends to sell a security or if it is more likely than not that the Corporation will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If the Corporation does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. | |
Loans and Leases | ' |
Loans and Leases. Loans and leases which management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance with adjustments for partial charge-offs, the allowance for loan and lease losses, deferred fees or costs on originated loans and leases, and unamortized premiums or discounts on any purchased loans. Loans originated or purchased and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Unrealized losses on such loans are recognized through a valuation allowance by a charge to other non-interest income. Gains and losses on the sale of loans are also included in other non-interest income. | |
A loan or a lease is accounted for as a troubled debt restructuring if the Corporation, for economic or legal reasons related to the borrower’s financial condition, grants a concession to the borrower that it would not otherwise consider. A troubled debt restructuring may involve the receipt of assets from the debtor in partial or full satisfaction of the loan or lease, or a modification of terms such as a reduction of the stated interest rate or face amount of the loan or lease, a reduction of accrued interest, an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan or lease with similar risk, or some combination of these concessions. Restructured loans can involve loans remaining on non-accrual, moving to non-accrual, or continuing on accrual status, depending on individual facts and circumstances. Non-accrual restructured loans are included and treated with all other non-accrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings which are considered and accounted for as impaired loans. Generally, restructured loans remain on non-accrual until the borrower has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual. | |
Interest on non-impaired loans and leases is accrued and credited to income on a daily basis based on the unpaid principal balance and is calculated using the effective interest method. Per policy, a loan or a lease is considered impaired and placed on a non-accrual status when it becomes 90 days past due or it is doubtful that contractual principal and interest will be collected in accordance with the terms of the contract. A loan or lease is determined to be past due if the borrower fails to meet a contractual payment and will continue to be considered past due until all contractual payments are received. When a loan or lease is placed on non-accrual, interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. If collectability of the contractual principal and interest is in doubt, payments received are first applied to reduce loan principal. If collectability of the contractual payments is not in doubt, payments may be applied to interest for interest amounts due on a cash basis. As soon as it is determined with certainty that the principal of an impaired loan or lease is uncollectable either through collections from the borrower or disposition of the underlying collateral, the portion of the carrying balance that exceeds the estimated measurement value of the loan or lease is charged off. Loans or leases are returned to accrual status when they are brought current in terms of both principal and accrued interest due, have performed in accordance with contractual terms for a reasonable period of time, and when the ultimate collectability of total contractual principal and interest is no longer doubtful. | |
Transfers of assets, including but not limited to participation interests in originated loans, that upon completion of the transfer satisfy the conditions to be reported as a sale, including legal isolation, are derecognized from the Consolidated Financial Statements. Transfers of assets that upon completion of the transfer do not meet the conditions of a sale are recorded on a gross basis with a secured borrowing identified to reflect the amount of the transferred interest. | |
Loan and lease origination fees as well as certain direct origination costs are deferred and amortized as an adjustment to loan yields over the stated term of the loan or lease. Loans or leases that result from a refinance or restructuring, other than a troubled debt restructuring, where terms are at least as favorable to the Corporation as the terms for comparable loans to other borrowers with similar collection risks and result in an essentially new loan or lease, are accounted for as a new loan or lease. Any unamortized net fees, costs, or penalties are recognized when the new loan or lease is originated. Unamortized net loan or lease fees or costs for loans and leases that result from a refinance or restructure with only minor modifications to the original loan or lease contract are carried forward as a part of the net investment in the new loan or lease. For troubled debt restructurings all fees received in connection with a modification of terms are applied as a reduction of the loan or lease and any related costs, including direct loan origination costs, are charged to expense as incurred. | |
Allowance for Loan and Lease Losses | ' |
Allowance for Loan and Lease Losses. The allowance for loan and lease losses is maintained at a level that management deems appropriate to absorb probable and estimable losses inherent in the loan and lease portfolios. Such inherent losses stem from the size and current risk characteristics of the loan and lease portfolio, an assessment of individual impaired and other problem loans and leases, actual loss experience, estimated fair value of underlying collateral, adverse situations that may affect the borrower’s ability to repay, and current geographic or industry-specific current economic events. Some impaired and other loans and leases have risk characteristics that are unique to an individual borrower and the loss must be estimated on an individual basis. Other impaired and problem loans and leases may have risk characteristics similar to other loans and leases and bear similar inherent risk of loss. Such loans and leases, which are not individually reviewed and measured for impairment, are aggregated and historical loss statistics are used to determine the risk of loss. | |
The measurement of the estimate of loss is reliant upon historical experience, information about the ability of the individual debtor to pay and appraisal of loan collateral in light of current economic conditions. An estimate of loss is an approximation of what portion of all amounts receivable, according to the contractual terms of that receivable, is deemed uncollectible. Determination of the allowance is inherently subjective because it requires estimation of amounts and timing of expected future cash flows on impaired and other problem loans and leases, estimation of losses on types of loans and leases based on historical losses and consideration of current economic trends, both local and national. Based on management’s periodic review using all previously mentioned pertinent factors, a provision for loan and lease losses is charged to expense when it is determined an increase in the allowance for loan and lease losses is appropriate. A negative provision for loan and lease losses may be recognized if determined a reduction in the level of allowance for loan and lease losses is appropriate. Loan and lease losses are charged against the allowance and recoveries are credited to the allowance. | |
The allowance for loan and lease losses contains specific allowances established for expected losses on impaired loans and leases. Impaired loans and leases are defined as loans and leases for which, based on current information and events, it is probable that the Corporation will be unable to collect scheduled principal and interest payments according to the contractual terms of the loan or lease agreement. Loans and leases subject to impairment are defined as non-accrual and restructured loans and leases exclusive of smaller homogeneous loans such as home equity, installment and 1-4 family residential loans. Impaired loans and leases are evaluated on an individual basis to determine the amount of specific reserve or charge-off required, if any. | |
The measurement value of impaired loans and leases is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate (the contractual interest rate adjusted for any net deferred loan fees or costs, premium, or discount existing at the origination or acquisition of the loan), the market price of the loan or lease, or the fair value of the underlying collateral less costs to sell, if the loan or lease is collateral dependent. A loan or lease is collateral dependent if repayment is expected to be provided principally by the underlying collateral. A loan’s effective interest rate may change over the life of the loan based on subsequent changes in rates or indices or may be fixed at the rate in effect at the date the loan was determined to be impaired. | |
Subsequent to the initial impairment, any significant change in the amount or timing of an impaired loan or lease’s future cash flows will result in a reassessment of the valuation allowance to determine if an adjustment is necessary. Measurements based on observable market price or fair value of the collateral may change over time and require a reassessment of the valuation allowance if there is a significant change in either measurement base. Any increase in the present value of expected future cash flows attributable to the passage of time is recorded as interest income accrued on the net carrying amount of the loan or lease at the effective interest rate used to discount the impaired loan or lease’s estimated future cash flows. For the year ended December 31, 2013, no interest income was recognized due to the increase of the present value of future cash flows attributable to the passage of time. Any change in present value attributable to changes in the amount or timing of expected future cash flows is recorded as loan loss expense in the same manner in which impairment was initially recognized or as a reduction of loan loss expense that otherwise would be reported. Where the level of loan or lease impairment is measured using observable market price or fair value of collateral, any change in the observable market price of an impaired loan or lease or fair value of the collateral of an impaired collateral-dependent loan or lease is recorded as loan loss expense in the same manner in which impairment was initially recognized. Any increase in the observable market value of the impaired loan or lease or fair value of the collateral in an impaired collateral-dependent loan or lease is recorded as a reduction in the amount of loan loss expense that otherwise would be reported. | |
To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the loan and lease portfolio by segments and risk ratings. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. | |
Loans Held for Sale | ' |
Loans Held for Sale. Loans held for sale consist of the current origination of certain 1-4 family mortgage loans and are carried at lower of cost or fair value. Fees received from the borrower and direct costs to originate the loan are deferred and recognized as part of the gain or loss on sale. There were no loans held for sale outstanding at December 31, 2013 or 2012. | |
Net Investment in Direct Financing Leases and Operating Leases | ' |
Net Investment in Direct Financing Leases. Net investment in direct financing lease agreements represents total undiscounted payments plus estimated unguaranteed residual value (approximating 3% to 20% of the cost of the related equipment) and is recorded as lease receivables when the lease is signed and the leased property is delivered to the client. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis which results in an approximate level rate of return on the unrecovered lease investment. Lease payments are recorded when due under the lease contract. Residual values are established at lease inception equal to the estimated value to be received from the equipment following termination of the initial lease and such estimated value considers all relevant information and circumstances regarding the equipment. In estimating the equipment’s fair value at lease termination, the Corporation relies on internally or externally prepared appraisals, published sources of used equipment prices and historical experience adjusted for known current industry and economic trends. The Corporation’s estimates are periodically reviewed to ensure reasonableness, however the amounts the Corporation will ultimately realize could differ from the estimated amounts. When there are other than temporary declines in the Corporation’s carrying amount of the unguaranteed residual value, the carrying value is reduced and charged to non-interest expense. | |
Operating Leases. Machinery and equipment are leased to clients under operating leases and are recorded at cost. Equipment under such leases is depreciated over the estimated useful life or term of the lease, if shorter. The impairment loss, if any, would be charged to expense in the period it becomes evident. Rental income is recorded on the straight-line accrual basis as other non-interest income. | |
Leasehold Improvements and Equipment | ' |
Leasehold Improvements and Equipment. The cost of capitalized leasehold improvements is amortized on the straight-line method over the lesser of the term of the respective lease or estimated economic life. Equipment is stated at cost less accumulated depreciation and amortization which is calculated by the straight-line method over the estimated useful lives of three to ten years. Maintenance and repair costs are charged to expense as incurred. Improvements which extend the useful life are capitalized and depreciated over the remaining useful life of the assets. | |
Foreclosed Properties | ' |
Foreclosed Properties. Property acquired by repossession, foreclosure or by deed in lieu of foreclosure is carried at the lower of the recorded investment in the loan at the time of acquisition or the fair value of the underlying property, less costs to sell. Any write-down in the carrying value of a loan or lease at the time of acquisition is charged to the allowance for loan and lease losses. Any subsequent write-downs to reflect current fair value, as well as gains and losses on disposition and revenues are recorded in non-interest expense. Costs relating to the development and improvement of the property are capitalized while holding period costs are charged to other non-interest expense. Foreclosed properties are included in foreclosed properties, net in the consolidated balance sheets. | |
Bank-Owned Life Insurance | ' |
Bank-Owned Life Insurance. Bank-owned life insurance (“BOLI”) is reported at the amount that would be realized if the life insurance policies were surrendered on the balance sheet date. BOLI policies owned by the Banks are purchased with the objective to fund certain future employee benefit costs with the death benefit proceeds. The cash surrender value of such policies is recorded in cash surrender value of life insurance on the consolidated balance sheets and changes in the value are recorded in non-interest income. The total death benefit of all of the BOLI policies was $57.4 million as of December 31, 2013. There are no restrictions on the use of BOLI proceeds nor are there any contractual restrictions on the ability to surrender the policy. As of each of December 31, 2013 and 2012, there were no borrowings against the cash surrender value of the BOLI policies. | |
Regulatory Required Holdings | ' |
Federal Home Loan Bank Stock. The Banks own shares in the Federal Home Loan Bank – Chicago (“FHLB”) as required for membership to the FHLB. The minimum required investment was $1.3 million as of December 31, 2013. FHLB stock is carried at cost which approximates its fair value because the shares can be resold to other member banks at their $100 per share par amount. The Corporation periodically evaluates its holding in FHLB stock for impairment. Should the stock be impaired, it would be written down to its estimated fair value. There were no impairments recorded on FHLB stock during the years ended December 31, 2013 and 2012. | |
Other Investments | ' |
Other Investments. The Corporation owns certain equity investments in other corporate organizations which are not consolidated because the Corporation does not own more than a 50% interest or exercise control over the organization. Such investments are not variable interest entities. Investments in corporations representing at least a 20% interest are generally accounted for using the equity method and investments in corporations representing less than 20% interest are generally accounted for at cost. Investments in limited partnerships representing from at least a 3% up to a 50% interest in the entity are generally accounted for using the equity method and investments in limited partnerships representing less than 3% are generally accounted for at cost. All of these investments are periodically evaluated for impairment. Should an investment be impaired, it would be written down to its estimated fair value. The equity investments are reported in other assets and the income and expense from such investments, if any, is reported in non-interest income and non-interest expense. | |
Derivative Instruments | ' |
Derivative Instruments. The Corporation uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets, liabilities, future cash flows and economic hedges for written client derivative contracts. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash to the other party based on a notional amount and an underlying as specified in the contract and may be subject to master netting agreements. A notional amount represents the number of units of a specific item, such as currency units. An underlying represents a variable, such as an interest rate. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying. | |
Market risk is the risk of loss arising from an adverse change in interest rates, exchange rates or equity prices. The Corporation’s primary market risk is interest rate risk. Instruments designed to manage interest rate risk include interest rate swaps, interest rate options and interest rate caps and floors with indices that relate to the pricing of specific assets and liabilities. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance sheet and the risk management strategies for the current and anticipated rate environments. Counterparty risk with respect to derivative instruments occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement. Counterparty risk is managed by limiting the counterparties to highly rated dealers and required collateral postings when values are in deficit positions, applying uniform credit standards to all activities with credit risk and monitoring the size and the maturity structure of the derivative portfolio. | |
All derivative instruments are to be carried at fair value on the consolidated balance sheets. The accounting for the gain or loss due to changes in the fair value of a derivative instrument depends on whether the derivative instrument qualifies as a hedge. If the derivative instrument does not qualify as a hedge, the gains or losses are reported in earnings when they occur. However, if the derivative instrument qualifies as a hedge, the accounting varies based on the type of risk being hedged. In 2013 and 2012, the Corporation solely utilized interest rate swaps which did not qualify for hedge accounting and therefore all changes in fair value and gains and losses on these instruments were reported in earnings as they occurred. The effects of netting arrangements are disclosed within the Notes of the Consolidated Financial Statements. | |
Income Taxes | ' |
Income Taxes. Deferred income tax assets and liabilities are computed annually for temporary differences in timing between the financial statement and tax basis of assets and liabilities that result in taxable or deductible amounts in the future based on enacted tax law and rates applicable to periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, appropriate tax planning strategies and projections for future taxable income over the period which the deferred tax assets are deductible. When necessary, valuation allowances are established to reduce deferred tax assets to the realizable amount. Management believes it is more likely than not that the Corporation will realize the benefits of these deductible differences, net of the existing valuation allowances. | |
Income tax expense or benefit represents the tax payable or tax refundable for a period, adjusted by the applicable change in deferred tax assets and liabilities for that period. The Corporation and its subsidiaries file a consolidated federal income tax return and separate state income tax returns. Tax sharing agreements allocate taxes to each entity for the settlement of intercompany taxes. The Corporation applies a more likely than not standard to each of its tax positions when determining the amount of tax expense or benefit to record in its financial statements. Unrecognized tax benefits are recorded in other liabilities. The Corporation recognizes accrued interest relating to unrecognized tax benefits in income tax expense and penalties in other non-interest expense. | |
Comprehensive Income | ' |
Other Comprehensive Income. Comprehensive income or loss, shown as a separate financial statement, includes net income or loss, changes in unrealized holding gains and losses on available for sale securities, changes in deferred gains and losses on investment securities transferred from available for sale to held to maturity, if any, changes in unrealized gains and losses associated with cash flow hedging instruments, if any, and the amortization of deferred gains and losses associated with terminated cash flow hedges, if any. For the year ended December 31, 2013, there were no items requiring reclassification out of accumulated other comprehensive income. | |
Earnings Per Share | ' |
Earnings Per Share. Earnings per common share (“EPS”) is computed using the two-class method. Basic EPS are computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding for the period, excluding any participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as the holders of the Corporation’s common stock. Diluted EPS is computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of common shares determined for the basic EPS plus the dilutive effect of common stock equivalents using the treasury stock method based on the average market price for the period. Some stock options are anti-dilutive and therefore are not included in the calculation of diluted EPS. | |
Segments and Related Information | ' |
Segments and Related Information. The Corporation is required to report each operating segment based on materiality thresholds of ten percent or more of certain amounts, such as revenue. Additionally, the Corporation is required to report separate operating segments until the revenue attributable to such segments is at least 75 percent of total consolidated revenue. The Corporation provides a broad range of financial services to individuals and companies in South Central, Northeastern and Southeastern Wisconsin. These services include demand, time, and savings products, the sale of certain non-deposit financial products and commercial and retail lending, leasing and trust services. While the Corporation’s chief decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a corporate-wide basis. The Corporation’s business units have similar basic characteristics in the nature of the products, production processes and type or class of client for products or services; therefore, these business units are considered one operating segment. | |
Stock Options | ' |
Stock Options. Prior to January 1, 2006, the Corporation accounted for stock-based compensation using the intrinsic value method. Under the intrinsic value method, compensation expense for employee stock options was generally not recognized if the exercise price of the option equaled or exceeded the fair market value of the stock on the date of grant. | |
On January 1, 2006, the Corporation adopted ASC Topic 718 using the prospective method as stock options were only granted by the Corporation prior to meeting the definition of a public entity. Under the prospective method, ASC Topic 718 must only be applied to the extent that those awards are subsequently modified, repurchased or cancelled. No stock options have been granted since the Corporation met the definition of a public entity and no stock options have been modified, repurchased or cancelled subsequent to the adoption of ASC Topic 718. Therefore, no stock-based compensation was recognized in the consolidated statements of income for the years ended December 31, 2013 or 2012, except with respect to restricted stock awards. Upon vesting of any options subject to ASC Topic 718, the benefits of tax deductions in excess of recognized compensation expense will be reported as a financing cash flow, rather than as an operating cash flow. | |
The Corporation adopted the 2012 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2012. The Plan is administered by the Compensation Committee of the Board of Directors of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options (together, “Stock Options”), restricted stock, restricted stock units and dividend equivalent units, and any other type of award permitted by the Plan. As of December 31, 2013, 198,949 shares were available for future grants under the Plan. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the Plan. The Corporation may issue new shares and shares from treasury for shares delivered under the Plan. | |
Stock Options | |
The Corporation may grant Stock Options to senior executives and other employees under the Plan. Stock Options generally have an exercise price that is equal to the fair value of the common shares on the date the option is awarded. Stock Options granted under the plans are subject to graded vesting, generally ranging from 4 years to 8 years, and have a contractual term of 10 years. For any new awards issued, compensation expense is recognized over the requisite service period for the entire award on a straight-line basis. No Stock Options were granted since the Corporation became a reporting company under the Securities Exchange Act of 1934 and no Stock Options have been modified, repurchased or cancelled since such time. For that reason, no stock-based compensation related to Stock Options was recognized in the Consolidated Financial Statements for the years ended December 31, 2013 and 2012. As of December 31, 2013, all Stock Options granted and not previously forfeited had vested. The benefits of tax deductions as a result of disqualifying dispositions upon exercise of stock options are recognized as a financing cash flow activity. | |
Future Accounting Changes | ' |
Future Accounting Changes. | |
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exits.” This ASU provides that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose. In these cases, the unrecognized tax benefit should be presented as a liability. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application is permitted. The Corporation is in the process of evaluating the impact of this standard on its existing disclosures and currently does not expect this standard to have a material impact on the Corporation’s consolidated financial position or results of operations. | |
In January 2014, the FASB issued ASU No. 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” This ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar agreement. In addition, the amendments require interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure in accordance with local requirements of the applicable jurisdiction. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective method or a prospective transition method. Early adoption is permitted. The Corporation is in the process of evaluating the impact of this standard but does not expect this standard to have a material impact on the Corporation’s consolidated financial position or results of operations. |
Loan_and_Lease_Receivables_Imp1
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Receivables [Abstract] | ' |
Allowance for Loan and Lease Losses | ' |
Allowance for Loan and Lease Losses. The allowance for loan and lease losses is maintained at a level that management deems appropriate to absorb probable and estimable losses inherent in the loan and lease portfolios. Such inherent losses stem from the size and current risk characteristics of the loan and lease portfolio, an assessment of individual impaired and other problem loans and leases, actual loss experience, estimated fair value of underlying collateral, adverse situations that may affect the borrower’s ability to repay, and current geographic or industry-specific current economic events. Some impaired and other loans and leases have risk characteristics that are unique to an individual borrower and the loss must be estimated on an individual basis. Other impaired and problem loans and leases may have risk characteristics similar to other loans and leases and bear similar inherent risk of loss. Such loans and leases, which are not individually reviewed and measured for impairment, are aggregated and historical loss statistics are used to determine the risk of loss. | |
The measurement of the estimate of loss is reliant upon historical experience, information about the ability of the individual debtor to pay and appraisal of loan collateral in light of current economic conditions. An estimate of loss is an approximation of what portion of all amounts receivable, according to the contractual terms of that receivable, is deemed uncollectible. Determination of the allowance is inherently subjective because it requires estimation of amounts and timing of expected future cash flows on impaired and other problem loans and leases, estimation of losses on types of loans and leases based on historical losses and consideration of current economic trends, both local and national. Based on management’s periodic review using all previously mentioned pertinent factors, a provision for loan and lease losses is charged to expense when it is determined an increase in the allowance for loan and lease losses is appropriate. A negative provision for loan and lease losses may be recognized if determined a reduction in the level of allowance for loan and lease losses is appropriate. Loan and lease losses are charged against the allowance and recoveries are credited to the allowance. | |
The allowance for loan and lease losses contains specific allowances established for expected losses on impaired loans and leases. Impaired loans and leases are defined as loans and leases for which, based on current information and events, it is probable that the Corporation will be unable to collect scheduled principal and interest payments according to the contractual terms of the loan or lease agreement. Loans and leases subject to impairment are defined as non-accrual and restructured loans and leases exclusive of smaller homogeneous loans such as home equity, installment and 1-4 family residential loans. Impaired loans and leases are evaluated on an individual basis to determine the amount of specific reserve or charge-off required, if any. | |
The measurement value of impaired loans and leases is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate (the contractual interest rate adjusted for any net deferred loan fees or costs, premium, or discount existing at the origination or acquisition of the loan), the market price of the loan or lease, or the fair value of the underlying collateral less costs to sell, if the loan or lease is collateral dependent. A loan or lease is collateral dependent if repayment is expected to be provided principally by the underlying collateral. A loan’s effective interest rate may change over the life of the loan based on subsequent changes in rates or indices or may be fixed at the rate in effect at the date the loan was determined to be impaired. | |
Subsequent to the initial impairment, any significant change in the amount or timing of an impaired loan or lease’s future cash flows will result in a reassessment of the valuation allowance to determine if an adjustment is necessary. Measurements based on observable market price or fair value of the collateral may change over time and require a reassessment of the valuation allowance if there is a significant change in either measurement base. Any increase in the present value of expected future cash flows attributable to the passage of time is recorded as interest income accrued on the net carrying amount of the loan or lease at the effective interest rate used to discount the impaired loan or lease’s estimated future cash flows. For the year ended December 31, 2013, no interest income was recognized due to the increase of the present value of future cash flows attributable to the passage of time. Any change in present value attributable to changes in the amount or timing of expected future cash flows is recorded as loan loss expense in the same manner in which impairment was initially recognized or as a reduction of loan loss expense that otherwise would be reported. Where the level of loan or lease impairment is measured using observable market price or fair value of collateral, any change in the observable market price of an impaired loan or lease or fair value of the collateral of an impaired collateral-dependent loan or lease is recorded as loan loss expense in the same manner in which impairment was initially recognized. Any increase in the observable market value of the impaired loan or lease or fair value of the collateral in an impaired collateral-dependent loan or lease is recorded as a reduction in the amount of loan loss expense that otherwise would be reported. | |
To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the loan and lease portfolio by segments and risk ratings. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. |
Fair_Value_Policies
Fair Value (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Measurement | ' |
Non-financial assets subject to measurement at fair value on a non-recurring basis included foreclosed properties. Foreclosed properties, upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan and lease losses, if deemed necessary, based upon the fair value of the foreclosed property. The fair value of a foreclosed property, upon initial recognition, is estimated using a market approach or Level 2 inputs based on observable market data, typically an appraisal, or Level 3 inputs based upon assumptions specific to the individual property or equipment. Level 3 inputs typically include unobservable inputs such as management applied discounts used to further reduce values to a net realizable value and may be used in situations when observable inputs become stale. Foreclosed property fair value inputs may transition to Level 1 upon receipt of an accepted offer for the sale of the related foreclosed property. As of December 31, 2013, there were no foreclosed properties supported by a Level 3 valuation. Subsequent impairments of foreclosed properties are recorded as a loss on foreclosed properties. During the year ended December 31, 2013, $1.4 million of outstanding loans were transferred to foreclosed properties. Based upon an evaluation of value of certain of the Corporation’s foreclosed properties, impairment losses of $59,000 on foreclosed properties were recognized for the year ended December 31, 2013. | |
The Corporation determines the fair market values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk such as nonperformance risk in liability fair values and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. | |
Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. | |
Level 2 — Level 2 inputs are inputs other than quoted prices included with Level 1 that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 — Level 3 inputs are inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | |
Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the Consolidated Balance Sheets. 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. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation. | |
Cash and cash equivalents: The carrying amounts reported for cash and due from banks, interest bearing deposits held by the Corporation, accrued interest receivable and accrued interest payable approximate fair value because of their immediate availability and because they do not present unanticipated credit concerns. The carrying value of commercial paper, included in the cash and cash equivalents category, approximates fair value due to the short-term maturity structure of the instrument. As of December 31, 2013 and 2012, the Corporation held $11.0 million and $5.5 million, respectively, of commercial paper. The fair value of commercial paper is considered a Level 3 input due to the lack of available independent pricing sources. The carrying value of brokered certificates of deposit purchased is equivalent to purchase price of the instrument as the Corporation has not elected a fair value option for these instruments. The fair value of brokered certificates of deposits purchased is based on the discounted value of contractual cash flows using a discount rate reflective of rates currently offered for deposits of similar remaining maturities. As of December 31, 2013 and 2012, the Corporation held $4.0 million and $5.1 million, respectively, of brokered certificates of deposits. | |
Securities: The fair value measurements of investment securities are determined by a third party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. On a sample basis, the fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. In addition, the Corporation reviews the third-party valuation methodology on a periodic basis. Any significant differences in valuation are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy. | |
Loans and Leases: The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts that the Corporation believes are consistent with liquidity discounts in the market place. Fair values are estimated for portfolios of loans with similar financial characteristics. The fair value of performing and nonperforming loans is calculated by discounting scheduled and expected cash flows through the estimated maturity using estimated market rates that reflect the credit and interest rate risk inherent in the portfolio of loans and then applying a discount factor based upon the embedded credit risk of the loan and the fair value of collateral securing nonperforming loans when the loan is collateral dependent. The estimate of maturity is based on the Banks’ historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions. Significant unobservable inputs include, but are not limited to, discounts (investor yield premiums) applied to fair value calculations to further determine the exit price value of a portfolio of loans. | |
Federal Home Loan Bank Stock: The carrying amount of FHLB stock equals its fair value because the shares may be redeemed by the FHLB at their carrying amount of $100 per share. | |
Cash Surrender Value of Life Insurance: The carrying amount of cash surrender value of life insurance approximates its fair value as the carrying value represents the current settlement amount. | |
Deposits: The fair value of deposits with no stated maturity, such as demand deposits and money market accounts, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the intangible value that results from the funding provided by deposit liabilities compared to borrowing funds in the market. | |
Borrowed Funds: Market rates currently available to the Corporation and Banks for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. | |
Financial Instruments with Off-Balance-Sheet Risks: The fair value of the Corporation’s off-balance-sheet instruments is based on quoted market prices and fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the credit standing of the related counterparty. Commitments to extend credit and standby letters of credit are generally not marketable. Furthermore, interest rates on any amounts drawn under such commitments would generally be established at market rates at the time of the draw. Fair value would principally derive from the present value of fees received for those products. | |
Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. | |
Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |
Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and were not considered in the estimates. |
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available-for-sale were as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrealized | unrealized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 16,380 | $ | 9 | $ | (145 | ) | $ | 16,244 | ||||||||||||||||
Municipal obligations | 16,207 | 35 | (753 | ) | 15,489 | ||||||||||||||||||||
Asset-backed securities | 1,517 | — | (23 | ) | 1,494 | ||||||||||||||||||||
Collateralized mortgage obligations - government issued | 111,010 | 2,238 | (1,279 | ) | 111,969 | ||||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 35,561 | 57 | (696 | ) | 34,922 | ||||||||||||||||||||
$ | 180,675 | $ | 2,339 | $ | (2,896 | ) | $ | 180,118 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrealized | unrealized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 19,667 | $ | 62 | $ | (8 | ) | $ | 19,721 | ||||||||||||||||
Municipal obligations | $ | 11,897 | $ | 179 | $ | (43 | ) | $ | 12,033 | ||||||||||||||||
Collateralized mortgage obligations - government issued | 148,369 | 3,344 | (68 | ) | 151,645 | ||||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 17,128 | 88 | (19 | ) | 17,197 | ||||||||||||||||||||
$ | 197,061 | $ | 3,673 | $ | (138 | ) | $ | 200,596 | |||||||||||||||||
Investments Classified by Contractual Maturity | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available-for-sale by contractual maturity at December 31, 2013 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations without call or prepayment penalties. | |||||||||||||||||||||||||
Amortized Cost | Estimated | ||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | |||||||||||||||||||||
Due in one year through five years | 15,150 | 15,036 | |||||||||||||||||||||||
Due in five through ten years | 41,116 | 41,018 | |||||||||||||||||||||||
Due in over ten years | 124,409 | 124,064 | |||||||||||||||||||||||
$ | 180,675 | $ | 180,118 | ||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||||||||||||||||||
A summary of unrealized loss information for available-for-sale securities, categorized by security type follows: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 10,608 | $ | 145 | $ | — | $ | — | $ | 10,608 | $ | 145 | |||||||||||||
Municipal obligations | 12,001 | 650 | 981 | 103 | 12,982 | 753 | |||||||||||||||||||
Asset-backed securities | 1,494 | 23 | — | — | 1,494 | 23 | |||||||||||||||||||
Collateralized mortgage obligations - government issued | 34,021 | 997 | 6,146 | 282 | 40,167 | 1,279 | |||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 20,628 | 506 | 5,418 | 190 | 26,046 | 696 | |||||||||||||||||||
$ | 78,752 | $ | 2,321 | $ | 12,545 | $ | 575 | $ | 91,297 | $ | 2,896 | ||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 2,992 | $ | 8 | $ | — | $ | — | $ | 2,992 | $ | 8 | |||||||||||||
Municipal obligations | 3,450 | 43 | — | — | 3,450 | 43 | |||||||||||||||||||
Collateralized mortgage obligations - government issued | 12,990 | 68 | — | — | 12,990 | 68 | |||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 5,075 | 19 | — | — | 5,075 | 19 | |||||||||||||||||||
$ | 24,507 | $ | 138 | $ | — | $ | — | $ | 24,507 | $ | 138 | ||||||||||||||
Loan_and_Lease_Receivables_Imp2
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Loan Composition Schedule | ' | ||||||||||||||||||||||||||||
Loan and lease receivables consist of the following: | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 141,164 | $ | 144,988 | |||||||||||||||||||||||||
Commercial real estate — non-owner occupied | 341,695 | 323,660 | |||||||||||||||||||||||||||
Construction and land development | 68,708 | 64,966 | |||||||||||||||||||||||||||
Multi-family | 62,758 | 58,454 | |||||||||||||||||||||||||||
1-4 family | 30,786 | 31,943 | |||||||||||||||||||||||||||
Total commercial real estate | 645,111 | 624,011 | |||||||||||||||||||||||||||
Commercial and industrial | 293,552 | 256,458 | |||||||||||||||||||||||||||
Direct financing leases, net | 26,065 | 15,926 | |||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Home equity and second mortgages | 5,272 | 4,642 | |||||||||||||||||||||||||||
Other | 11,972 | 11,671 | |||||||||||||||||||||||||||
Total consumer and other | 17,244 | 16,313 | |||||||||||||||||||||||||||
Total gross loans and leases receivable | 981,972 | 912,708 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Allowance for loan and lease losses | 13,901 | 15,400 | |||||||||||||||||||||||||||
Deferred loan fees | 1,021 | 748 | |||||||||||||||||||||||||||
Loans and leases receivable, net | $ | 967,050 | $ | 896,560 | |||||||||||||||||||||||||
Financing Receivable by Credit Quality Indicators | ' | ||||||||||||||||||||||||||||
The following information illustrates ending balances of the Corporation’s loan and lease portfolio, including impaired loans by class of receivable, and considering certain credit quality indicators as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Category | |||||||||||||||||||||||||||||
As of December 31, 2013 | I | II | III | IV | Total | ||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 118,764 | $ | 11,259 | $ | 10,802 | $ | 339 | $ | 141,164 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 290,865 | 29,444 | 21,103 | 283 | 341,695 | ||||||||||||||||||||||||
Construction and land development | 53,493 | 1,972 | 7,754 | 5,489 | 68,708 | ||||||||||||||||||||||||
Multi-family | 57,049 | 5,678 | — | 31 | 62,758 | ||||||||||||||||||||||||
1-4 family | 19,197 | 7,611 | 3,312 | 666 | 30,786 | ||||||||||||||||||||||||
Total commercial real estate | 539,368 | 55,964 | 42,971 | 6,808 | 645,111 | ||||||||||||||||||||||||
Commercial and industrial | 268,109 | 11,688 | 5,712 | 8,043 | 293,552 | ||||||||||||||||||||||||
Direct financing leases, net | 23,171 | 2,421 | 473 | — | 26,065 | ||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 4,408 | 134 | 150 | 580 | 5,272 | ||||||||||||||||||||||||
Other | 11,177 | — | — | 795 | 11,972 | ||||||||||||||||||||||||
Total consumer and other | 15,585 | 134 | 150 | 1,375 | 17,244 | ||||||||||||||||||||||||
Total gross loans and leases receivable | $ | 846,233 | $ | 70,207 | $ | 49,306 | $ | 16,226 | $ | 981,972 | |||||||||||||||||||
Category as a % of total portfolio | 86.18 | % | 7.15 | % | 5.02 | % | 1.65 | % | 100 | % | |||||||||||||||||||
Category | |||||||||||||||||||||||||||||
As of December 31, 2012 | I | II | III | IV | Total | ||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 117,180 | $ | 9,688 | $ | 17,351 | $ | 769 | $ | 144,988 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 267,884 | 29,553 | 22,992 | 3,231 | 323,660 | ||||||||||||||||||||||||
Construction and land development | 49,134 | 2,037 | 8,384 | 5,411 | 64,966 | ||||||||||||||||||||||||
Multi-family | 50,808 | 6,810 | 790 | 46 | 58,454 | ||||||||||||||||||||||||
1-4 family | 18,255 | 4,657 | 7,873 | 1,158 | 31,943 | ||||||||||||||||||||||||
Total commercial real estate | 503,261 | 52,745 | 57,390 | 10,615 | 624,011 | ||||||||||||||||||||||||
Commercial and industrial | 233,524 | 9,922 | 10,170 | 2,842 | 256,458 | ||||||||||||||||||||||||
Direct financing leases, net | 10,486 | 3,897 | 1,543 | — | 15,926 | ||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 3,525 | 157 | 220 | 740 | 4,642 | ||||||||||||||||||||||||
Other | 10,641 | — | — | 1,030 | 11,671 | ||||||||||||||||||||||||
Total consumer and other | 14,166 | 157 | 220 | 1,770 | 16,313 | ||||||||||||||||||||||||
Total gross loans and leases receivable | $ | 761,437 | $ | 66,721 | $ | 69,323 | $ | 15,227 | $ | 912,708 | |||||||||||||||||||
Category as a % of total portfolio | 83.43 | % | 7.31 | % | 7.6 | % | 1.67 | % | 100 | % | |||||||||||||||||||
Past Due Financing Receivables | ' | ||||||||||||||||||||||||||||
The delinquency aging of the loan and lease portfolio by class of receivable as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||||
As of December 31, 2013 | 30-59 | 60-89 | Greater | Total past due | Current | Total loans | |||||||||||||||||||||||
days past due | days past due | than 90 | |||||||||||||||||||||||||||
days past due | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | — | $ | — | $ | 140,825 | $ | 140,825 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 341,412 | 341,412 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 63,286 | 63,286 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 62,727 | 62,727 | |||||||||||||||||||||||
1-4 family | — | — | — | — | 30,265 | 30,265 | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | 285,541 | 285,541 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 26,065 | 26,065 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | — | — | 4,819 | 4,819 | |||||||||||||||||||||||
Other | — | — | — | — | 11,177 | 11,177 | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 966,117 | $ | 966,117 | |||||||||||||||||
Non-accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 254 | $ | 254 | $ | 85 | $ | 339 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 283 | 283 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 5,422 | 5,422 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 31 | 31 | |||||||||||||||||||||||
1-4 family | — | 180 | 123 | 303 | 218 | 521 | |||||||||||||||||||||||
Commercial & industrial | 1,944 | 1,407 | 53 | 3,404 | 4,607 | 8,011 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | 85 | 85 | 368 | 453 | |||||||||||||||||||||||
Other | — | — | 795 | 795 | — | 795 | |||||||||||||||||||||||
Total | $ | 1,944 | $ | 1,587 | $ | 1,310 | $ | 4,841 | $ | 11,014 | $ | 15,855 | |||||||||||||||||
Total loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 254 | $ | 254 | $ | 140,910 | $ | 141,164 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 341,695 | 341,695 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 68,708 | 68,708 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 62,758 | 62,758 | |||||||||||||||||||||||
1-4 family | — | 180 | 123 | 303 | 30,483 | 30,786 | |||||||||||||||||||||||
Commercial & industrial | 1,944 | 1,407 | 53 | 3,404 | 290,148 | 293,552 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 26,065 | 26,065 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | 85 | 85 | 5,187 | 5,272 | |||||||||||||||||||||||
Other | — | — | 795 | 795 | 11,177 | 11,972 | |||||||||||||||||||||||
Total | $ | 1,944 | $ | 1,587 | $ | 1,310 | $ | 4,841 | $ | 977,131 | $ | 981,972 | |||||||||||||||||
Percent of portfolio | 0.2 | % | 0.16 | % | 0.13 | % | 0.49 | % | 99.51 | % | 100 | % | |||||||||||||||||
As of December 31, 2012 | 30-59 | 60-89 | Greater | Total past due | Current | Total loans | |||||||||||||||||||||||
days past due | days past due | than 90 | |||||||||||||||||||||||||||
days past due | |||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 210 | $ | — | $ | — | $ | 210 | $ | 144,009 | $ | 144,219 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 320,789 | 320,789 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 60,020 | 60,020 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 58,408 | 58,408 | |||||||||||||||||||||||
1-4 family | — | — | — | — | 30,937 | 30,937 | |||||||||||||||||||||||
Commercial & industrial | — | — | — | — | 253,616 | 253,616 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 15,926 | 15,926 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | — | — | 4,030 | 4,030 | |||||||||||||||||||||||
Other | — | — | — | — | 10,641 | 10,641 | |||||||||||||||||||||||
Total | $ | 210 | $ | — | $ | — | $ | 210 | $ | 898,376 | $ | 898,586 | |||||||||||||||||
Non-accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 117 | $ | 117 | $ | 652 | $ | 769 | |||||||||||||||||
Non-owner occupied | 2,415 | — | 444 | 2,859 | 12 | 2,871 | |||||||||||||||||||||||
Construction and land development | — | — | 471 | 471 | 4,475 | 4,946 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 46 | 46 | |||||||||||||||||||||||
1-4 family | 74 | — | 482 | 556 | 450 | 1,006 | |||||||||||||||||||||||
Commercial & industrial | 57 | — | 560 | 617 | 2,225 | 2,842 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | 121 | 121 | 491 | 612 | |||||||||||||||||||||||
Other | — | — | 1,030 | 1,030 | — | 1,030 | |||||||||||||||||||||||
Total | $ | 2,546 | $ | — | $ | 3,225 | $ | 5,771 | $ | 8,351 | $ | 14,122 | |||||||||||||||||
Total loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 210 | $ | — | $ | 117 | $ | 327 | $ | 144,661 | $ | 144,988 | |||||||||||||||||
Non-owner occupied | 2,415 | — | 444 | 2,859 | 320,801 | 323,660 | |||||||||||||||||||||||
Construction and land development | — | — | 471 | 471 | 64,495 | 64,966 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 58,454 | 58,454 | |||||||||||||||||||||||
1-4 family | 74 | — | 482 | 556 | 31,387 | 31,943 | |||||||||||||||||||||||
Commercial & industrial | 57 | — | 560 | 617 | 255,841 | 256,458 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 15,926 | 15,926 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | 121 | 121 | 4,521 | 4,642 | |||||||||||||||||||||||
Other | — | — | 1,030 | 1,030 | 10,641 | 11,671 | |||||||||||||||||||||||
Total | $ | 2,756 | $ | — | $ | 3,225 | $ | 5,981 | $ | 906,727 | $ | 912,708 | |||||||||||||||||
Percent of portfolio | 0.3 | % | — | % | 0.36 | % | 0.66 | % | 99.34 | % | 100 | % | |||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status | ' | ||||||||||||||||||||||||||||
The Corporation’s total impaired assets consisted of the following at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Non-accrual loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 339 | $ | 769 | |||||||||||||||||||||||||
Commercial real estate — non-owner occupied | 283 | 2,871 | |||||||||||||||||||||||||||
Construction and land development | 5,422 | 4,946 | |||||||||||||||||||||||||||
Multi-family | 31 | 46 | |||||||||||||||||||||||||||
1-4 family | 521 | 1,006 | |||||||||||||||||||||||||||
Total non-accrual commercial real estate | 6,596 | 9,638 | |||||||||||||||||||||||||||
Commercial and industrial | 8,011 | 2,842 | |||||||||||||||||||||||||||
Direct financing leases, net | — | — | |||||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 453 | 612 | |||||||||||||||||||||||||||
Other | 795 | 1,030 | |||||||||||||||||||||||||||
Total non-accrual consumer and other loans | 1,248 | 1,642 | |||||||||||||||||||||||||||
Total non-accrual loans and leases | 15,855 | 14,122 | |||||||||||||||||||||||||||
Foreclosed properties, net | 333 | 1,574 | |||||||||||||||||||||||||||
Total non-performing assets | 16,188 | 15,696 | |||||||||||||||||||||||||||
Performing troubled debt restructurings | 371 | 1,105 | |||||||||||||||||||||||||||
Total impaired assets | $ | 16,559 | $ | 16,801 | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Total non-accrual loans and leases to gross loans and leases | 1.61 | % | 1.55 | % | |||||||||||||||||||||||||
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 1.65 | 1.72 | |||||||||||||||||||||||||||
Total non-performing assets to total assets | 1.28 | 1.28 | |||||||||||||||||||||||||||
Allowance for loan and lease losses to gross loans and leases | 1.42 | 1.69 | |||||||||||||||||||||||||||
Allowance for loan and lease losses to non-accrual loans and leases | 87.68 | 109.05 | |||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | ||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | ||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||
Loans | Investment | Investment | Loans | Investment | Investment | ||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | 1 | $ | 110 | $ | 84 | 5 | $ | 338 | $ | 303 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 3 | 385 | 283 | 5 | 885 | 803 | |||||||||||||||||||||||
Construction and land development | 3 | 6,060 | 5,489 | 4 | 8,044 | 4,953 | |||||||||||||||||||||||
Multi-family | 1 | 184 | 31 | 1 | 184 | 47 | |||||||||||||||||||||||
1-4 family | 10 | 911 | 666 | 13 | 1,674 | 1,132 | |||||||||||||||||||||||
Commercial and industrial | 5 | 1,935 | 565 | 7 | 2,250 | 931 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgage | 6 | 752 | 580 | 7 | 865 | 726 | |||||||||||||||||||||||
Other | 1 | 2,076 | 795 | 1 | 2,076 | 1,030 | |||||||||||||||||||||||
Total | 30 | $ | 12,413 | $ | 8,493 | 43 | $ | 16,316 | $ | 9,925 | |||||||||||||||||||
Troubled Debt Restructurings by Modification Type | ' | ||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, our troubled debt restructurings grouped by type of concession were as follows: | |||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
Number | Recorded Investment | Number | Recorded Investment | ||||||||||||||||||||||||||
of | of | ||||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Extension of term | 1 | $ | 55 | 2 | $ | 117 | |||||||||||||||||||||||
Combination of extension and interest rate concession | 17 | 6,498 | 26 | 7,121 | |||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Extension of term | 1 | 49 | 3 | 241 | |||||||||||||||||||||||||
Combination of extension and interest rate concession | 4 | 516 | 4 | 689 | |||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Extension of term | 2 | 880 | 2 | 1,117 | |||||||||||||||||||||||||
Combination of extension and interest rate concession | 5 | 495 | 6 | 640 | |||||||||||||||||||||||||
Total | 30 | $ | 8,493 | 43 | $ | 9,925 | |||||||||||||||||||||||
Impaired Financing Receivables | ' | ||||||||||||||||||||||||||||
The following represents additional information regarding the Corporation’s impaired loans and leases by class: | |||||||||||||||||||||||||||||
Impaired Loans and Leases | |||||||||||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Recorded | Unpaid | Impairment | Average | Foregone | Interest | Net | |||||||||||||||||||||||
investment | principal | reserve | recorded | interest | income | foregone | |||||||||||||||||||||||
balance | investment(1) | income | recognized | interest | |||||||||||||||||||||||||
income | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
With no impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 339 | $ | 339 | $ | — | $ | 715 | $ | 57 | $ | 50 | $ | 7 | |||||||||||||||
Non-owner occupied | 229 | 229 | — | 1,586 | 198 | 17 | 181 | ||||||||||||||||||||||
Construction and land development | 5,489 | 8,160 | — | 5,777 | 203 | 3 | 200 | ||||||||||||||||||||||
Multi-family | 31 | 398 | — | 366 | 93 | — | 93 | ||||||||||||||||||||||
1-4 family | 244 | 244 | — | 405 | 31 | 34 | (3 | ) | |||||||||||||||||||||
Commercial and industrial | 555 | 766 | — | 434 | 97 | 114 | (17 | ) | |||||||||||||||||||||
Direct financing leases, net | — | — | — | 6 | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 518 | 518 | — | 593 | 37 | 3 | 34 | ||||||||||||||||||||||
Other | 795 | 1,461 | — | 942 | 100 | — | 100 | ||||||||||||||||||||||
Total | $ | 8,200 | $ | 12,115 | $ | — | $ | 10,824 | $ | 816 | $ | 221 | $ | 595 | |||||||||||||||
With impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Non-owner occupied | 54 | 94 | 54 | 88 | 6 | — | 6 | ||||||||||||||||||||||
Construction and land development | — | — | — | — | — | — | — | ||||||||||||||||||||||
Multi-family | — | — | — | — | — | — | — | ||||||||||||||||||||||
1-4 family | 422 | 422 | 155 | 437 | 18 | — | 18 | ||||||||||||||||||||||
Commercial and industrial | 7,488 | 7,488 | 131 | 670 | 42 | — | 42 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 62 | 62 | 62 | 65 | 5 | — | 5 | ||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 8,026 | $ | 8,066 | $ | 402 | $ | 1,260 | $ | 71 | $ | — | $ | 71 | |||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 339 | $ | 339 | $ | — | $ | 715 | $ | 57 | $ | 50 | $ | 7 | |||||||||||||||
Non-owner occupied | 283 | 323 | 54 | 1,674 | 204 | 17 | 187 | ||||||||||||||||||||||
Construction and land development | 5,489 | 8,160 | — | 5,777 | 203 | 3 | 200 | ||||||||||||||||||||||
Multi-family | 31 | 398 | — | 366 | 93 | — | 93 | ||||||||||||||||||||||
1-4 family | 666 | 666 | 155 | 842 | 49 | 34 | 15 | ||||||||||||||||||||||
Commercial and industrial | 8,043 | 8,254 | 131 | 1,104 | 139 | 114 | 25 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | 6 | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 580 | 580 | 62 | 658 | 42 | 3 | 39 | ||||||||||||||||||||||
Other | 795 | 1,461 | — | 942 | 100 | — | 100 | ||||||||||||||||||||||
Grand total | $ | 16,226 | $ | 20,181 | $ | 402 | $ | 12,084 | $ | 887 | $ | 221 | $ | 666 | |||||||||||||||
-1 | Average recorded investment is calculated primarily using daily average balances. | ||||||||||||||||||||||||||||
Impaired Loans and Leases | |||||||||||||||||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Recorded | Unpaid | Impairment | Average | Foregone | Interest | Net | |||||||||||||||||||||||
investment | principal | reserve | recorded | interest | income | foregone | |||||||||||||||||||||||
balance | investment(1) | income | recognized | Interest | |||||||||||||||||||||||||
Income | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
With no impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 741 | $ | 741 | $ | — | $ | 1,482 | $ | 142 | $ | 2 | $ | 140 | |||||||||||||||
Non-owner occupied | 648 | 648 | — | 1,239 | 222 | 207 | 15 | ||||||||||||||||||||||
Construction and land development | 4,946 | 8,537 | — | 5,834 | 246 | 24 | 222 | ||||||||||||||||||||||
Multi-family | 47 | 414 | — | 313 | 69 | 60 | 9 | ||||||||||||||||||||||
1-4 family | 544 | 677 | — | 2,213 | 151 | — | 151 | ||||||||||||||||||||||
Commercial and industrial | 2,394 | 2,404 | — | 1,987 | 163 | 25 | 138 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | 4 | — | 1 | (1 | ) | |||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 656 | 657 | — | 913 | 55 | 1 | 54 | ||||||||||||||||||||||
Other | 1,030 | 1,620 | — | 1,150 | 113 | 1 | 112 | ||||||||||||||||||||||
Total | $ | 11,006 | $ | 15,698 | $ | — | $ | 15,135 | $ | 1,161 | $ | 321 | $ | 840 | |||||||||||||||
With impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 28 | $ | 28 | $ | 16 | $ | 30 | $ | 2 | $ | — | $ | 2 | |||||||||||||||
Non-owner occupied | 2,582 | 2,582 | 829 | 162 | 33 | — | 33 | ||||||||||||||||||||||
Construction and land development | 465 | 465 | 174 | 528 | 15 | — | 15 | ||||||||||||||||||||||
Multi-family | — | — | — | — | — | — | — | ||||||||||||||||||||||
1-4 family | 614 | 614 | 224 | 637 | 36 | — | 36 | ||||||||||||||||||||||
Commercial and industrial | 447 | 3,137 | 187 | 1,350 | 178 | — | 178 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 85 | 85 | 87 | 103 | 7 | — | 7 | ||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 4,221 | $ | 6,911 | $ | 1,517 | $ | 2,810 | $ | 271 | $ | — | $ | 271 | |||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 769 | $ | 769 | $ | 16 | $ | 1,512 | $ | 144 | $ | 2 | $ | 142 | |||||||||||||||
Non-owner occupied | 3,230 | 3,230 | 829 | 1,401 | 255 | 207 | 48 | ||||||||||||||||||||||
Construction and land development | 5,411 | 9,002 | 174 | 6,362 | 261 | 24 | 237 | ||||||||||||||||||||||
Multi-family | 47 | 414 | — | 313 | 69 | 60 | 9 | ||||||||||||||||||||||
1-4 family | 1,158 | 1,291 | 224 | 2,850 | 187 | — | 187 | ||||||||||||||||||||||
Commercial and industrial | 2,841 | 5,541 | 187 | 3,337 | 341 | 25 | 316 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | 4 | — | 1 | (1 | ) | |||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 741 | 742 | 87 | 1,016 | 62 | 1 | 61 | ||||||||||||||||||||||
Other | 1,030 | 1,620 | — | 1,150 | 113 | 1 | 112 | ||||||||||||||||||||||
Grand total | $ | 15,227 | $ | 22,609 | $ | 1,517 | $ | 17,945 | $ | 1,432 | $ | 321 | $ | 1,111 | |||||||||||||||
-1 | Average recorded investment is calculated primarily using daily average balances. | ||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | ||||||||||||||||||||||||||||
A summary of the activity in the allowance for loan and lease losses by portfolio segment is as follows: | |||||||||||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Direct | Total | |||||||||||||||||||||||||
real estate | and | and other | financing | ||||||||||||||||||||||||||
industrial | leases, net | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 10,693 | $ | 4,129 | $ | 371 | $ | 207 | $ | 15,400 | |||||||||||||||||||
Charge-offs | (896 | ) | (14 | ) | (4 | ) | — | (914 | ) | ||||||||||||||||||||
Recoveries | 353 | 11 | 5 | 5 | 374 | ||||||||||||||||||||||||
Provision | (1,095 | ) | 109 | (99 | ) | 126 | (959 | ) | |||||||||||||||||||||
Ending balance | $ | 9,055 | $ | 4,235 | $ | 273 | $ | 338 | $ | 13,901 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 209 | $ | 131 | $ | 62 | $ | — | $ | 402 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,846 | $ | 4,104 | $ | 211 | $ | 338 | $ | 13,499 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Loans and lease receivables: | |||||||||||||||||||||||||||||
Ending balance, gross | $ | 645,111 | $ | 293,552 | $ | 17,244 | $ | 26,065 | $ | 981,972 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 5,379 | $ | 8,043 | $ | 1,375 | $ | — | $ | 14,797 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 638,303 | $ | 285,509 | $ | 15,869 | $ | 26,065 | $ | 965,746 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 1,429 | $ | — | $ | — | $ | — | $ | 1,429 | |||||||||||||||||||
Allowance as % of gross loans | 1.4 | % | 1.44 | % | 1.58 | % | 1.3 | % | 1.42 | % | |||||||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Direct | Total | |||||||||||||||||||||||||
real estate | and | and other | financing | ||||||||||||||||||||||||||
industrial | leases, net | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 9,554 | $ | 3,977 | $ | 384 | $ | 240 | $ | 14,155 | |||||||||||||||||||
Charge-offs | (612 | ) | (2,739 | ) | (128 | ) | — | (3,479 | ) | ||||||||||||||||||||
Recoveries | 375 | 66 | 40 | — | 481 | ||||||||||||||||||||||||
Provision | 1,376 | 2,825 | 75 | (33 | ) | 4,243 | |||||||||||||||||||||||
Ending balance | $ | 10,693 | $ | 4,129 | $ | 371 | $ | 207 | $ | 15,400 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,244 | $ | 186 | $ | 87 | $ | — | $ | 1,517 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 9,449 | $ | 3,943 | $ | 284 | $ | 207 | $ | 13,883 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Loans and lease receivables: | |||||||||||||||||||||||||||||
Ending balance, gross | $ | 624,011 | $ | 256,458 | $ | 16,313 | $ | 15,926 | $ | 912,708 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,614 | $ | 2,842 | $ | 1,771 | $ | — | $ | 15,227 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 613,397 | $ | 253,616 | $ | 14,542 | $ | 15,926 | $ | 897,481 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Allowance as % of gross loans | 1.71 | % | 1.61 | % | 2.27 | % | 1.3 | % | 1.69 | % | |||||||||||||||||||
Net Investment In Direct Financing Leases | ' | ||||||||||||||||||||||||||||
The Corporation’s net investment in direct financing leases consists of the following: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Minimum lease payments receivable | $ | 24,658 | $ | 12,951 | |||||||||||||||||||||||||
Estimated unguaranteed residual values in leased property | 4,546 | 4,366 | |||||||||||||||||||||||||||
Initial direct costs | 226 | 29 | |||||||||||||||||||||||||||
Less unearned lease and residual income | (3,365 | ) | (1,420 | ) | |||||||||||||||||||||||||
Investment in commercial direct financing leases | $ | 26,065 | $ | 15,926 | |||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | ' | ||||||||||||||||||||||||||||
Future aggregate maturities of minimum lease payments to be received are as follows: | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Maturities during year ended December 31, | |||||||||||||||||||||||||||||
2014 | $ | 6,429 | |||||||||||||||||||||||||||
2015 | 5,332 | ||||||||||||||||||||||||||||
2016 | 4,256 | ||||||||||||||||||||||||||||
2017 | 3,214 | ||||||||||||||||||||||||||||
2018 | 2,494 | ||||||||||||||||||||||||||||
Thereafter | 2,933 | ||||||||||||||||||||||||||||
$ | 24,658 | ||||||||||||||||||||||||||||
Leasehold_Improvements_and_Equ1
Leasehold Improvements and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
A summary of leasehold improvements and equipment at December 31, 2013 and 2012 is as follows: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Leasehold improvements | $ | 1,547 | $ | 1,263 | |||||
Furniture and equipment | 3,257 | 3,031 | |||||||
Construction and purchases in progress | — | 77 | |||||||
4,804 | 4,371 | ||||||||
Less: accumulated depreciation | (3,649 | ) | (3,403 | ) | |||||
Total leasehold improvements and equipment, net | $ | 1,155 | $ | 968 | |||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Assets [Abstract] | ' | ||||||||
Accrued Interest Receivable and Other Assets | ' | ||||||||
A summary of accrued interest receivable and other assets is as follows: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Accrued interest receivable | $ | 3,231 | $ | 3,217 | |||||
Deferred tax assets, net | 3,722 | 4,583 | |||||||
Investment in limited partnerships | 2,141 | 2,000 | |||||||
Investment in Trust II | 315 | 315 | |||||||
Fair value of interest rate swaps | 946 | 3,069 | |||||||
Prepaid expenses | 1,224 | 1,453 | |||||||
Other | 2,737 | 2,771 | |||||||
Total accrued interest receivable and other assets | $ | 14,316 | $ | 17,408 | |||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Deposits [Abstract] | ' | ||||||||||||||||||||||
Deposits | ' | ||||||||||||||||||||||
The composition of deposits at December 31, 2013 and 2012 was as follows. Weighted average balances represent year-to-date averages. | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Balance | Weighted | Weighted | Balance | Weighted | Weighted | ||||||||||||||||||
average | average rate | average | average rate | ||||||||||||||||||||
balance | balance | ||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Non-interest-bearing transaction accounts | $ | 151,275 | $ | 138,920 | — | % | $ | 161,985 | $ | 137,117 | — | % | |||||||||||
Interest-bearing transaction accounts | 77,004 | 62,578 | 0.2 | 43,542 | 34,180 | 0.28 | |||||||||||||||||
Money market accounts | 456,065 | 450,558 | 0.53 | 443,743 | 395,259 | 0.76 | |||||||||||||||||
Certificates of deposit | 51,979 | 60,276 | 1.01 | 68,599 | 82,430 | 1.17 | |||||||||||||||||
Brokered certificates of deposit | 393,532 | 393,726 | 1.68 | 374,385 | 400,695 | 2.23 | |||||||||||||||||
Total deposits | $ | 1,129,855 | $ | 1,106,058 | 0.88 | $ | 1,092,254 | $ | 1,049,681 | 1.24 | |||||||||||||
Time Deposits By Maturity | ' | ||||||||||||||||||||||
A summary of annual maturities of certificates of deposit outstanding at December 31, 2013 follows: | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Maturities during the year ended December 31, | |||||||||||||||||||||||
2014 | $ | 173,077 | |||||||||||||||||||||
2015 | 117,382 | ||||||||||||||||||||||
2016 | 58,087 | ||||||||||||||||||||||
2017 | 31,571 | ||||||||||||||||||||||
2018 | 23,357 | ||||||||||||||||||||||
Thereafter | 42,037 | ||||||||||||||||||||||
$ | 445,511 | ||||||||||||||||||||||
FHLB_Advances_Other_Borrowings1
FHLB Advances, Other Borrowings and Junior Subordinated Notes (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||
Composition of borrowed funds | ' | ||||||||||||||||||||||
The composition of borrowed funds at December 31, 2013 and 2012 was as follows. Weighted average balances represent year-to-date averages. | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Balance | Weighted | Weighted | Balance | Weighted | Weighted | ||||||||||||||||||
average | average | average | average | ||||||||||||||||||||
balance | rate | balance | rate | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | — | $ | 260 | 0.74 | % | $ | — | $ | 237 | 0.82 | % | |||||||||||
FHLB advances | — | 6,471 | 0.19 | 469 | 2,034 | 1.59 | |||||||||||||||||
Line of credit | 10 | 10 | 3.41 | 10 | 1,666 | 4.07 | |||||||||||||||||
Subordinated notes payable | 11,926 | 11,926 | 6.92 | 11,926 | 37,481 | 7.02 | |||||||||||||||||
Junior subordinated notes | 10,315 | 10,315 | 10.78 | 10,315 | 10,315 | 10.81 | |||||||||||||||||
$ | 22,251 | $ | 28,982 | 6.78 | $ | 22,720 | $ | 51,733 | 7.46 | ||||||||||||||
Short-term borrowings | $ | 10 | $ | 479 | |||||||||||||||||||
Long-term borrowings | 22,241 | 22,241 | |||||||||||||||||||||
$ | 22,251 | $ | 22,720 | ||||||||||||||||||||
Stockholders_Equity_and_Regula1
Stockholders' Equity and Regulatory Capital (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | |||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | ' | |||||||||||||||||||||
The following table summarizes the Corporation’s and Banks’ capital ratios and the ratios required by their federal regulators at December 31, 2013 and 2012, respectively: | ||||||||||||||||||||||
Actual | Minimum Required for Capital | Minimum Required to Be Well | ||||||||||||||||||||
Adequacy Purposes | Capitalized Under Prompt | |||||||||||||||||||||
Corrective Action | ||||||||||||||||||||||
Requirements | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
Total capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 145,352 | 13.16 | % | $ | 88,373 | 8 | % | N/A | N/A | ||||||||||||
First Business Bank | 123,331 | 12.57 | 78,516 | 8 | $ | 98,145 | 10 | % | ||||||||||||||
First Business Bank – Milwaukee | 17,944 | 14.66 | 9,790 | 8 | 12,238 | 10 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 119,617 | 10.83 | $ | 44,186 | 4 | N/A | N/A | ||||||||||||||
First Business Bank | 111,062 | 11.32 | 39,258 | 4 | $ | 58,887 | 6 | |||||||||||||||
First Business Bank – Milwaukee | 16,414 | 13.41 | 4,895 | 4 | 7,343 | 6 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to average assets) | ||||||||||||||||||||||
Consolidated | $ | 119,617 | 9.35 | $ | 51,153 | 4 | N/A | N/A | ||||||||||||||
First Business Bank | 111,062 | 10.35 | 42,913 | 4 | $ | 53,641 | 5 | |||||||||||||||
First Business Bank – Milwaukee | 16,414 | 7.64 | 8,595 | 4 | 10,744 | 5 | ||||||||||||||||
Actual | Minimum Required for Capital | Minimum Required to Be Well | ||||||||||||||||||||
Adequacy Purposes | Capitalized Under Prompt | |||||||||||||||||||||
Corrective Action | ||||||||||||||||||||||
Requirements | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Total capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 132,042 | 12.97 | % | $ | 81,452 | 8 | % | N/A | N/A | ||||||||||||
First Business Bank | 115,613 | 12.73 | 72,640 | 8 | $ | 90,800 | 10 | % | ||||||||||||||
First Business Bank – Milwaukee | 15,743 | 14.6 | 8,626 | 8 | 10,783 | 10 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 107,356 | 10.54 | $ | 40,726 | 4 | N/A | N/A | ||||||||||||||
First Business Bank | 104,232 | 11.48 | 36,320 | 4 | $ | 54,480 | 6 | |||||||||||||||
First Business Bank – Milwaukee | 14,392 | 13.35 | 4,313 | 4 | 6,470 | 6 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to average assets) | ||||||||||||||||||||||
Consolidated | $ | 107,356 | 8.99 | $ | 47,750 | 4 | N/A | N/A | ||||||||||||||
First Business Bank | 104,232 | 10.49 | 39,731 | 4 | $ | 49,664 | 5 | |||||||||||||||
First Business Bank – Milwaukee | 14,392 | 6.72 | 8,563 | 4 | 10,703 | 5 | ||||||||||||||||
Reconciliation of stockholders' equity to federal regulatory capital | ' | |||||||||||||||||||||
The following table reconciles stockholders’ equity to federal regulatory capital at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
Stockholders’ equity of the Corporation | $ | 109,275 | $ | 99,539 | ||||||||||||||||||
Unrealized and accumulated losses (gains) on specific items | 342 | (2,183 | ) | |||||||||||||||||||
Trust preferred securities | 10,000 | 10,000 | ||||||||||||||||||||
Tier 1 capital | 119,617 | 107,356 | ||||||||||||||||||||
Allowable general valuation allowances and subordinated debt | 25,735 | 24,686 | ||||||||||||||||||||
Risk-based capital | $ | 145,352 | $ | 132,042 | ||||||||||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||
For the Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars in Thousands, Except Share Data) | |||||||||
Basic earnings per common share | |||||||||
Net income | $ | 13,746 | $ | 8,926 | |||||
Less: earnings allocated to participating securities | 331 | 329 | |||||||
Basic earnings allocated to common shareholders | $ | 13,415 | $ | 8,597 | |||||
Weighted-average common shares outstanding, excluding participating securities | 3,832,296 | 2,608,961 | |||||||
Basic earnings per common share | $ | 3.5 | $ | 3.3 | |||||
Diluted earnings per common share | |||||||||
Earnings allocated to common shareholders | $ | 13,415 | $ | 8,597 | |||||
Reallocation of undistributed earnings | 2 | — | |||||||
Diluted earnings allocated to common shareholders | $ | 13,417 | $ | 8,597 | |||||
Weighted-average common shares outstanding, excluding participating securities | 3,832,296 | 2,608,961 | |||||||
Dilutive effect of share-based awards | 15,314 | 1,911 | |||||||
Weighted-average diluted common shares outstanding, excluding participating securities | 3,847,610 | 2,610,872 | |||||||
Diluted earnings per common share | $ | 3.49 | $ | 3.29 | |||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||||||
The following table represents a summary of Stock Options activity for the periods indicated. | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Options | Weighted | Options | Weighted | ||||||||||||||
average price | average price | ||||||||||||||||
Outstanding at beginning of year | 124,034 | $ | 22.43 | 125,034 | $ | 22.43 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | (69,684 | ) | 21.13 | (1,000 | ) | 22 | |||||||||||
Expired | (3,350 | ) | 22 | — | — | ||||||||||||
Forfeited | — | — | — | — | |||||||||||||
Outstanding at end of year | 51,000 | 24.24 | 124,034 | 22.43 | |||||||||||||
Options exercisable at end of year | 51,000 | 24.24 | 124,034 | 22.43 | |||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | ' | ||||||||||||||||
The following table represents outstanding Stock Options and exercisable Stock Options at the respective ranges of exercise prices at December 31, 2013. | |||||||||||||||||
Options Outstanding | Exercisable | ||||||||||||||||
Range of exercise prices | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||
average | average | average | |||||||||||||||
remaining | exercise | exercise | |||||||||||||||
contractual | price | price | |||||||||||||||
life (years) | |||||||||||||||||
$24.00 - $24.99 | 39,000 | 0.8 | $ | 24 | 39,000 | $ | 24 | ||||||||||
$25.00 - $25.99 | 12,000 | 1.13 | 25 | 12,000 | 25 | ||||||||||||
51,000 | 0.88 | 24.24 | 51,000 | 24.24 | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||||||
Restricted share activity for the years ended December 31, 2013 and 2012 was as follows: | |||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||
restricted | average | restricted | average | ||||||||||||||
shares | grant-date | shares | grant-date | ||||||||||||||
fair value | fair value | ||||||||||||||||
Nonvested balance at beginning of year | 94,506 | $ | 18.19 | 95,868 | $ | 15.15 | |||||||||||
Granted | 25,030 | 33 | 37,123 | 23.03 | |||||||||||||
Vested | (34,827 | ) | 16.88 | (35,905 | ) | 15.06 | |||||||||||
Forfeited | — | — | (2,580 | ) | 18.32 | ||||||||||||
Nonvested balance as of end of year | 84,709 | 23.1 | 94,506 | 18.19 | |||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Future Minimum Lease Payments | ' | |||
Future minimum lease payments for noncancelable operating leases for each of the five succeeding years and thereafter are as follows: | ||||
(In Thousands) | ||||
2014 | $ | 706 | ||
2015 | 678 | |||
2016 | 645 | |||
2017 | 613 | |||
2018 | 558 | |||
Thereafter | 4,885 | |||
$ | 8,085 | |||
Other_Operating_Expenses_Table
Other Operating Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Operating Expenses [Abstract] | ' | ||||||||
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | ' | ||||||||
A summary of other operating expenses for the years ended December 31, 2013 and 2012 is as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Endowment to First Business Charitable Foundation | $ | 1,300 | $ | — | |||||
General and administrative expenses | 938 | 912 | |||||||
Travel and other employee expenses | 877 | 903 | |||||||
Computer software expenses | 677 | 446 | |||||||
Partnership loss (income) | 437 | (678 | ) | ||||||
Foreclosed properties expenses | 185 | 589 | |||||||
Other expenses | 240 | 562 | |||||||
Total other operating expenses | $ | 4,654 | $ | 2,734 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||
Income tax expense applicable to income for the years ended December 31, 2013 and 2012 consists of the following: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Current: | |||||||||
Federal | $ | 3,605 | $ | 5,473 | |||||
State | 1,356 | 1,183 | |||||||
Current tax expense | 4,961 | 6,656 | |||||||
Deferred: | |||||||||
Federal | 2,257 | (1,756 | ) | ||||||
State | 171 | (150 | ) | ||||||
Deferred tax expense (benefit) | 2,428 | (1,906 | ) | ||||||
Total income tax expense | $ | 7,389 | $ | 4,750 | |||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||
The significant components of the Corporation’s deferred tax assets and liabilities are as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Deferred tax assets: | |||||||||
Allowance for loan and lease losses | $ | 5,372 | $ | 5,890 | |||||
Deferred compensation | 1,144 | 1,139 | |||||||
State net operating loss carryforwards | 730 | 712 | |||||||
Write-down of foreclosed properties | — | 188 | |||||||
Non-accrual loan interest | 733 | 863 | |||||||
Capital loss carryforwards | 35 | 35 | |||||||
Unrealized loss on securities | 215 | — | |||||||
Other | 486 | 505 | |||||||
Total deferred tax assets before valuation allowance | 8,715 | 9,332 | |||||||
Valuation allowance | (67 | ) | (8 | ) | |||||
Total deferred tax assets | 8,648 | 9,324 | |||||||
Deferred tax liabilities: | |||||||||
Leasing and fixed asset activities | 4,803 | 3,266 | |||||||
Unrealized gain on securities | — | 1,352 | |||||||
Other | 123 | 123 | |||||||
Total deferred tax liabilities | 4,926 | 4,741 | |||||||
Net deferred tax asset | $ | 3,722 | $ | 4,583 | |||||
Schedule of Reconciliation of the Change in Net Deferred Tax Assets to Deferred Tax Expense | ' | ||||||||
A reconciliation of the change in net deferred tax assets to deferred tax expense follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Change in net deferred tax assets | $ | (861 | ) | $ | 2,101 | ||||
Deferred taxes allocated to other comprehensive income | (1,567 | ) | (195 | ) | |||||
Deferred income tax (expense) benefit | $ | (2,428 | ) | $ | 1,906 | ||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||
The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(Dollars In Thousands) | |||||||||
Income before income tax expense | $ | 21,135 | $ | 13,676 | |||||
Tax expense at statutory federal rate of 34.43% and 34% applied to income before income tax expense, respectively | $ | 7,275 | $ | 4,650 | |||||
State income tax, net of federal effect | 906 | 647 | |||||||
Tax-exempt security and loan income, net of TEFRA adjustments | (682 | ) | (431 | ) | |||||
Change in valuation allowance | 59 | (3 | ) | ||||||
Bank-owned life insurance | (291 | ) | (239 | ) | |||||
Other | 122 | 126 | |||||||
Total income tax expense | $ | 7,389 | $ | 4,750 | |||||
Effective tax rate | 34.96 | % | 34.73 | % |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Location and Fair Value of the Company's Derivative Financial Instruments | ' | ||||||||||||
The table below provides information about the location and fair value of the Corporation’s derivative instruments as of December 31, 2013 and 2012. | |||||||||||||
Interest Rate Swap Contracts | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
(In Thousands) | |||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||
December 31, 2013 | Other assets | $ | 946 | Other liabilities | $ | 946 | |||||||
December 31, 2012 | Other assets | $ | 3,069 | Other liabilities | $ | 3,069 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||
Lending Related And Other Commitments | ' | ||||||||
Financial instruments whose contract amounts represent potential credit risk at December 31, 2013 and 2012, respectively, are as follows: | |||||||||
At December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Commitments to extend credit, primarily commercial loans | $ | 282,581 | $ | 257,150 | |||||
Standby letters of credit | 19,602 | 17,840 | |||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements, Recurring Basis | ' | ||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Municipal obligations | $ | — | $ | 15,489 | $ | — | $ | 15,489 | |||||||||||||
Asset backed securities | — | 1,494 | — | 1,494 | |||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | — | 16,244 | — | 16,244 | |||||||||||||||||
Collateralized mortgage obligations - government issued | — | 111,969 | — | 111,969 | |||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | — | 34,922 | — | 34,922 | |||||||||||||||||
Interest rate swaps | — | 946 | — | 946 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | $ | — | $ | 946 | $ | — | $ | 946 | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Municipal obligations | $ | — | $ | 12,033 | $ | — | $ | 12,033 | |||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | — | 19,721 | — | 19,721 | |||||||||||||||||
Collateralized mortgage obligations - government issued | — | 151,645 | — | 151,645 | |||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | — | 17,197 | — | 17,197 | |||||||||||||||||
Interest rate swaps | — | 3,069 | — | 3,069 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | $ | — | $ | 3,069 | $ | — | $ | 3,069 | |||||||||||||
Fair Value Measurements, Nonrecurring Basis | ' | ||||||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: | |||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||
Fair Value Measurements Using | Total | ||||||||||||||||||||
Gains | |||||||||||||||||||||
Balance at December 31, 2013 | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Impaired loans | $ | 13,719 | $ | — | $ | 13,666 | $ | 53 | $ | — | |||||||||||
Foreclosed properties | 333 | — | 333 | — | (59 | ) | |||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||
Fair Value Measurements Using | Total | ||||||||||||||||||||
Gains | |||||||||||||||||||||
Balance at December 31, 2012 | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Impaired loans | $ | 8,544 | $ | — | $ | 6,770 | $ | 1,774 | $ | — | |||||||||||
Foreclosed properties | 1,574 | 529 | 982 | 63 | (600 | ) | |||||||||||||||
Foreclosed Properties | ' | ||||||||||||||||||||
The activity of the Corporation’s foreclosed properties is summarized as follows: | |||||||||||||||||||||
As of and for the Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Foreclosed properties at the beginning of the period | $ | 1,574 | $ | 2,236 | |||||||||||||||||
Loans transferred to foreclosed properties, at lower of cost or fair value | 1,381 | 1,511 | |||||||||||||||||||
Payments to priority lien holders of foreclosed properties | — | 367 | |||||||||||||||||||
Proceeds from sale of foreclosed properties | (2,739 | ) | (1,955 | ) | |||||||||||||||||
Net gain on sale of foreclosed properties | 176 | 15 | |||||||||||||||||||
Impairment valuation | (59 | ) | (600 | ) | |||||||||||||||||
Foreclosed properties at the end of the period | $ | 333 | $ | 1,574 | |||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||||||
The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 81,286 | $ | 81,295 | $ | 66,266 | $ | 4,029 | $ | 11,000 | |||||||||||
Securities available-for-sale | 180,118 | 180,118 | — | 180,118 | — | ||||||||||||||||
Loans and lease receivables, net | 967,050 | 963,937 | — | 13,666 | 950,271 | ||||||||||||||||
Federal Home Loan Bank stock | 1,255 | 1,255 | — | — | 1,255 | ||||||||||||||||
Cash surrender value of life insurance | 23,142 | 23,142 | 23,142 | — | — | ||||||||||||||||
Accrued interest receivable | 3,231 | 3,231 | 3,231 | — | — | ||||||||||||||||
Interest rate swaps | 946 | 946 | — | 946 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 1,129,855 | $ | 1,131,002 | $ | 684,344 | $ | 446,658 | $ | — | |||||||||||
Federal Home Loan Bank and other borrowings | 11,936 | 11,979 | — | 11,979 | — | ||||||||||||||||
Junior subordinated notes | 10,315 | 7,084 | — | — | 7,084 | ||||||||||||||||
Interest rate swaps | 946 | 946 | — | 946 | — | ||||||||||||||||
Accrued interest payable | 1,052 | 1,052 | 1,052 | — | — | ||||||||||||||||
Off balance sheet items: | |||||||||||||||||||||
Standby letters of credit | 219 | 219 | — | — | 219 | ||||||||||||||||
Commitments to extend credit | — | * | * | * | * | ||||||||||||||||
*Not meaningful | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 85,586 | $ | 85,595 | $ | 74,940 | $ | 5,155 | $ | 5,500 | |||||||||||
Securities available-for-sale | 200,596 | 200,596 | — | 200,596 | — | ||||||||||||||||
Loans and lease receivables, net | 896,560 | 905,501 | — | 6,770 | 898,731 | ||||||||||||||||
Federal Home Loan Bank stock | 1,144 | 1,144 | — | — | 1,144 | ||||||||||||||||
Cash surrender value of life insurance | 22,272 | 22,272 | 22,272 | — | — | ||||||||||||||||
Accrued interest receivable | 3,217 | 3,217 | 3,217 | — | — | ||||||||||||||||
Interest rate swaps | 3,069 | 3,069 | — | 3,069 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 1,092,254 | $ | 1,102,316 | $ | 649,346 | $ | 452,970 | $ | — | |||||||||||
Federal Home Loan Bank and other borrowings | 12,405 | 13,170 | — | 13,170 | — | ||||||||||||||||
Junior subordinated notes | 10,315 | 7,046 | — | — | 7,046 | ||||||||||||||||
Interest rate swaps | 3,069 | 3,069 | — | 3,069 | — | ||||||||||||||||
Accrued interest payable | 1,711 | 1,711 | 1,711 | — | — | ||||||||||||||||
Off balance sheet items: | |||||||||||||||||||||
Standby letters of credit | 197 | 197 | — | — | 197 | ||||||||||||||||
Commitments to extend credit | — | * | * | * | * | ||||||||||||||||
*Not meaningful |
Condensed_Parent_Only_Financia1
Condensed Parent Only Financial Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||
Condensed Balance Sheet | ' | ||||||||
The following represents the condensed financial information of FBFS - Only: | |||||||||
Condensed Balance Sheets | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 4,855 | $ | 1,032 | |||||
Investments in subsidiaries, at equity | 127,450 | 121,122 | |||||||
Leasehold improvements and equipment, net | 789 | 475 | |||||||
Other assets | 1,921 | 2,199 | |||||||
Total assets | $ | 135,015 | $ | 124,828 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Borrowed funds | $ | 22,251 | $ | 22,251 | |||||
Other liabilities | 3,489 | 3,038 | |||||||
Total liabilities | 25,740 | 25,289 | |||||||
Stockholders’ equity | 109,275 | 99,539 | |||||||
Total liabilities and stockholders’ equity | $ | 135,015 | $ | 124,828 | |||||
Condensed Income Statement | ' | ||||||||
Condensed Statements of Income | |||||||||
For the Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Interest income | $ | — | $ | — | |||||
Interest expense | 1,952 | 3,825 | |||||||
Net interest expense | (1,952 | ) | (3,825 | ) | |||||
Non-interest income | |||||||||
Consulting and rental income from consolidated subsidiaries | 9,738 | 8,904 | |||||||
Other | 34 | 34 | |||||||
Total non-interest income | 9,772 | 8,938 | |||||||
Non-interest expense | 10,558 | 9,615 | |||||||
Loss before income tax benefit and equity in undistributed net income of consolidated subsidiaries | (2,738 | ) | (4,502 | ) | |||||
Income tax benefit | (1,050 | ) | (1,722 | ) | |||||
Loss before equity in undistributed net income of consolidated subsidiaries | (1,688 | ) | (2,780 | ) | |||||
Equity in undistributed net income of consolidated subsidiaries | 15,434 | 11,706 | |||||||
Net income | $ | 13,746 | $ | 8,926 | |||||
Condensed Cash Flow Statement | ' | ||||||||
Condensed Statements of Cash Flows | |||||||||
For the Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
(In Thousands) | |||||||||
Operating activities | |||||||||
Net income | $ | 13,746 | $ | 8,926 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||
Equity in undistributed earnings of consolidated subsidiaries | (15,434 | ) | (11,706 | ) | |||||
Share-based compensation | 311 | 254 | |||||||
Excess tax benefit from share-based compensation | (145 | ) | (47 | ) | |||||
Increase (decrease) in other liabilities | 867 | (1,131 | ) | ||||||
Other, net | (34 | ) | (297 | ) | |||||
Net cash used in operating activities | (689 | ) | (4,001 | ) | |||||
Investing activities | |||||||||
Dividends received from subsidiaries | 8,000 | 6,000 | |||||||
Capital contributions to subsidiaries | (850 | ) | — | ||||||
Net provided by investing activities | 7,150 | 6,000 | |||||||
Financing activities | |||||||||
Net decrease in short-term borrowed funds | — | (800 | ) | ||||||
Proceeds from issuance of long-term debt | — | 6,215 | |||||||
Repayment of long-term debt | — | (33,289 | ) | ||||||
Proceeds from issuance of common stock | — | 27,074 | |||||||
Proceeds from exercise of stock options | 1,474 | 22 | |||||||
Purchase of treasury stock | (1,782 | ) | (216 | ) | |||||
Excess tax benefit from share-based compensation | 145 | 47 | |||||||
Dividends paid | (2,475 | ) | (738 | ) | |||||
Net cash used in financing activities | (2,638 | ) | (1,685 | ) | |||||
Increase in cash and cash equivalents | 3,823 | 314 | |||||||
Cash and cash equivalents at the beginning of the period | 1,032 | 718 | |||||||
Cash and cash equivalents at the end of the period | $ | 4,855 | $ | 1,032 | |||||
Condensed_Quarterly_Earnings_T
Condensed Quarterly Earnings (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | ||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||||||||||
(Dollars in Thousands, Except per share data) | |||||||||||||||||||||||||||||||||
Interest income | $ | 13,319 | $ | 13,142 | $ | 13,586 | $ | 13,763 | $ | 13,633 | $ | 13,943 | $ | 14,032 | $ | 13,158 | |||||||||||||||||
Interest expense | (3,090 | ) | (2,949 | ) | (2,887 | ) | (2,779 | ) | (4,707 | ) | (4,334 | ) | (4,117 | ) | (3,727 | ) | |||||||||||||||||
Net interest income | 10,229 | 10,193 | 10,699 | 10,984 | 8,926 | 9,609 | 9,915 | 9,431 | |||||||||||||||||||||||||
Provision for loan losses | (80 | ) | (54 | ) | (109 | ) | 1,202 | (504 | ) | (2,045 | ) | (850 | ) | (844 | ) | ||||||||||||||||||
Non-interest income | 1,953 | 2,174 | 2,124 | 2,191 | 1,850 | 1,904 | 2,249 | 2,696 | |||||||||||||||||||||||||
Non-interest expense | (7,178 | ) | (7,490 | ) | (7,147 | ) | (8,556 | ) | (6,832 | ) | (7,132 | ) | (7,251 | ) | (7,446 | ) | |||||||||||||||||
Income before income tax expense | 4,924 | 4,823 | 5,567 | 5,821 | 3,440 | 2,336 | 4,063 | 3,837 | |||||||||||||||||||||||||
Income taxes | (1,680 | ) | (1,690 | ) | (1,958 | ) | (2,061 | ) | (1,230 | ) | (771 | ) | (1,441 | ) | (1,308 | ) | |||||||||||||||||
Net income | $ | 3,244 | $ | 3,133 | $ | 3,609 | $ | 3,760 | $ | 2,210 | $ | 1,565 | $ | 2,622 | $ | 2,529 | |||||||||||||||||
Per common share data: | |||||||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.83 | $ | 0.8 | $ | 0.92 | $ | 0.95 | $ | 0.84 | $ | 0.6 | $ | 0.99 | $ | 0.86 | |||||||||||||||||
Diluted earnings per common share | 0.83 | 0.8 | 0.91 | 0.95 | 0.84 | 0.6 | 0.99 | 0.86 | |||||||||||||||||||||||||
Dividends declared per share | 0.14 | 0.14 | 0.14 | 0.14 | 0.07 | 0.07 | 0.07 | 0.07 | |||||||||||||||||||||||||
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies Direct Financing Leases (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Unguaranteed Residual Percentage Of Cost [Line Items] | ' |
Unguaranteed residual percent of cost | 3.00% |
Maximum | ' |
Unguaranteed Residual Percentage Of Cost [Line Items] | ' |
Unguaranteed residual percent of cost | 20.00% |
Nature_of_Operations_and_Summa3
Nature of Operations and Summary of Significant Accounting Policies Leasehold Improvements and Equipment (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Equipment, useful life | '3 years |
Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Equipment, useful life | '10 years |
Nature_of_Operations_and_Summa4
Nature of Operations and Summary of Significant Accounting Policies Federal Home Loan Bank Stock (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Investment Holdings [Line Items] | ' | ' |
Investment in Federal Home Loan Bank stock, at cost | $1,255,000 | $1,144,000 |
FHLB stock par value | 100 | ' |
FHLB Stock | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Other than temporary impairment losses, investments | $0 | $0 |
Nature_of_Operations_and_Summa5
Nature of Operations and Summary of Significant Accounting Policies Other Investments (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Investment In Limited Partnerships Accounting Treatment [Line Items] | ' |
Maximum ownership percentage that is not consolidated | 50.00% |
Investment in corporations minimum ownership percentage for accounting for using the equity method | 20.00% |
Investment in corporations maximum ownership percentage for accounting for at cost | 20.00% |
Investment in limited partnerships maximum ownership percentage for accounting for at cost | 3.00% |
Minimum | ' |
Investment In Limited Partnerships Accounting Treatment [Line Items] | ' |
Investment in limited partnerships ownership percentage for accounting for using the equity method | 3.00% |
Maximum | ' |
Investment In Limited Partnerships Accounting Treatment [Line Items] | ' |
Investment in limited partnerships ownership percentage for accounting for using the equity method | 50.00% |
Nature_of_Operations_and_Summa6
Nature of Operations and Summary of Significant Accounting Policies Other Comprehensive Income (Details) (Reclassification out of accumulated other comprehensive income, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Reclassification out of accumulated other comprehensive income | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' |
Other than temporary impairment losses, investments, portion recognized in earnings, net | $0 |
Nature_of_Operations_and_Summa7
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Held-to-maturity securities | $0 | $0 |
Trading securities | 0 | 0 |
Loans and leases receivable, impaired, interest income recognized, change in present value attributable to passage of time | 0 | ' |
Loans receivable held-for-sale, net | 0 | 0 |
Bank owned life insurance death benefits | 57,400,000 | ' |
Borrowings against cash surrender value of bank owned life insurance | 0 | 0 |
Stock-based compensation related to stock options recognized in consolidated financial statements | $0 | $0 |
Cash_and_Cash_Equivalents_Narr
Cash and Cash Equivalents (Narrative Disclosures) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Abstract] | ' | ' |
Cash and due from banks | $13,219,000 | $21,626,000 |
Required reserves in the form of either vault cash or deposits held at the Federal Reserve Bank | 1,500,000 | 291,000 |
Federal Reserve Bank balances | 53,000,000 | 53,100,000 |
Short-term investments | 68,067,000 | 63,960,000 |
Federal funds sold | $24,000 | $237,000 |
Securities_AvailableforSale_Se
Securities (Available-for-Sale Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | $180,675 | $197,061 |
Gross unrealized holding gains | 2,339 | 3,673 |
Gross unrealized holding losses | -2,896 | -138 |
Estimated fair value | 180,118 | 200,596 |
U.S. Government agency obligations - government-sponsored enterprises | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 16,380 | 19,667 |
Gross unrealized holding gains | 9 | 62 |
Gross unrealized holding losses | -145 | -8 |
Estimated fair value | 16,244 | 19,721 |
Municipal obligations | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 16,207 | 11,897 |
Gross unrealized holding gains | 35 | 179 |
Gross unrealized holding losses | -753 | -43 |
Estimated fair value | 15,489 | 12,033 |
Asset-backed securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 1,517 | ' |
Gross unrealized holding gains | 0 | ' |
Gross unrealized holding losses | -23 | ' |
Estimated fair value | 1,494 | ' |
Collateralized mortgage obligations - government issued | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 111,010 | 148,369 |
Gross unrealized holding gains | 2,238 | 3,344 |
Gross unrealized holding losses | -1,279 | -68 |
Estimated fair value | 111,969 | 151,645 |
Collateralized mortgage obligations - government-sponsored enterprises | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 35,561 | 17,128 |
Gross unrealized holding gains | 57 | 88 |
Gross unrealized holding losses | -696 | -19 |
Estimated fair value | $34,922 | $17,197 |
Securities_Contractual_Maturit
Securities (Contractual Maturity) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Due in one year or less | $0 | ' |
Due in one year through five years | 15,150 | ' |
Due in five through ten years | 41,116 | ' |
Due in over ten years | 124,409 | ' |
Amortized Cost | 180,675 | ' |
Estimated Fair Value | ' | ' |
Due in one year or less | 0 | ' |
Due in one year through five years | 15,036 | ' |
Due in five through ten years | 41,018 | ' |
Due in over ten years | 124,064 | ' |
Estimated fair value | $180,118 | $200,596 |
Securities_Unrealized_Losses_D
Securities (Unrealized Losses) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair value | ' | ' |
Less than 12 months | $78,752 | $24,507 |
12 months or longer | 12,545 | 0 |
Total | 91,297 | 24,507 |
Unrealized losses | ' | ' |
Less than 12 months | 2,321 | 138 |
12 months or longer | 575 | 0 |
Total | 2,896 | 138 |
U.S. Government agency obligations - government-sponsored enterprises | ' | ' |
Fair value | ' | ' |
Less than 12 months | 10,608 | 2,992 |
12 months or longer | 0 | 0 |
Total | 10,608 | 2,992 |
Unrealized losses | ' | ' |
Less than 12 months | 145 | 8 |
12 months or longer | 0 | 0 |
Total | 145 | 8 |
Municipal obligations | ' | ' |
Fair value | ' | ' |
Less than 12 months | 12,001 | 3,450 |
12 months or longer | 981 | 0 |
Total | 12,982 | 3,450 |
Unrealized losses | ' | ' |
Less than 12 months | 650 | 43 |
12 months or longer | 103 | 0 |
Total | 753 | 43 |
Asset-backed securities | ' | ' |
Fair value | ' | ' |
Less than 12 months | 1,494 | ' |
12 months or longer | 0 | ' |
Total | 1,494 | ' |
Unrealized losses | ' | ' |
Less than 12 months | 23 | ' |
12 months or longer | 0 | ' |
Total | 23 | ' |
Collateralized mortgage obligations - government issued | ' | ' |
Fair value | ' | ' |
Less than 12 months | 34,021 | 12,990 |
12 months or longer | 6,146 | 0 |
Total | 40,167 | 12,990 |
Unrealized losses | ' | ' |
Less than 12 months | 997 | 68 |
12 months or longer | 282 | 0 |
Total | 1,279 | 68 |
Collateralized mortgage obligations - government-sponsored enterprises | ' | ' |
Fair value | ' | ' |
Less than 12 months | 20,628 | 5,075 |
12 months or longer | 5,418 | 0 |
Total | 26,046 | 5,075 |
Unrealized losses | ' | ' |
Less than 12 months | 506 | 19 |
12 months or longer | 190 | 0 |
Total | $696 | $19 |
Securities_Narrative_Disclosur
Securities (Narrative Disclosures) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
securities | securities | |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Proceeds from sale of available-for-sale securities | $0 | $0 |
Available-for-sale securities pledged as collateral | 42,300,000 | 23,100,000 |
Securities in unrealized loss positions | 131 | 30 |
Securities in an unrealized loss position, twelve months or greater | 13 | ' |
Other than temporary impairment | $0 | $0 |
Loan_and_Lease_Receivables_Imp3
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Loan Composition) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Commercial real estate — owner occupied | $141,164 | $144,988 |
Commercial real estate — non-owner occupied | 341,695 | 323,660 |
Construction and land development | 68,708 | 64,966 |
Multi-family | 62,758 | 58,454 |
1-4 family | 30,786 | 31,943 |
Total commercial real estate | 645,111 | 624,011 |
Commercial and industrial | 293,552 | 256,458 |
Direct financing leases, net | 26,065 | 15,926 |
Home equity and second mortgages | 5,272 | 4,642 |
Other | 11,972 | 11,671 |
Total consumer and other | 17,244 | 16,313 |
Total gross loans and leases receivable | 981,972 | 912,708 |
Allowance for loan and lease losses | 13,901 | 15,400 |
Deferred loan fees | 1,021 | 748 |
Loans and leases receivable, net | $967,050 | $896,560 |
Loan_and_Lease_Receivables_Imp4
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Loans by Credit Quality Indicator) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial real estate — owner occupied | $141,164 | $144,988 |
Commercial real estate — non-owner occupied | 341,695 | 323,660 |
Construction and land development | 68,708 | 64,966 |
Multi-family | 62,758 | 58,454 |
1-4 family | 30,786 | 31,943 |
Total commercial real estate | 645,111 | 624,011 |
Commercial and industrial | 293,552 | 256,458 |
Direct financing leases, net | 26,065 | 15,926 |
Home equity and second mortgages | 5,272 | 4,642 |
Other | 11,972 | 11,671 |
Total consumer and other | 17,244 | 16,313 |
Total gross loans and leases receivable | 981,972 | 912,708 |
Category as a % of total portfolio | 100.00% | 100.00% |
Category I | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial real estate — owner occupied | 118,764 | 117,180 |
Commercial real estate — non-owner occupied | 290,865 | 267,884 |
Construction and land development | 53,493 | 49,134 |
Multi-family | 57,049 | 50,808 |
1-4 family | 19,197 | 18,255 |
Total commercial real estate | 539,368 | 503,261 |
Commercial and industrial | 268,109 | 233,524 |
Direct financing leases, net | 23,171 | 10,486 |
Home equity and second mortgages | 4,408 | 3,525 |
Other | 11,177 | 10,641 |
Total consumer and other | 15,585 | 14,166 |
Total gross loans and leases receivable | 846,233 | 761,437 |
Category as a % of total portfolio | 86.18% | 83.43% |
Category II | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial real estate — owner occupied | 11,259 | 9,688 |
Commercial real estate — non-owner occupied | 29,444 | 29,553 |
Construction and land development | 1,972 | 2,037 |
Multi-family | 5,678 | 6,810 |
1-4 family | 7,611 | 4,657 |
Total commercial real estate | 55,964 | 52,745 |
Commercial and industrial | 11,688 | 9,922 |
Direct financing leases, net | 2,421 | 3,897 |
Home equity and second mortgages | 134 | 157 |
Other | 0 | 0 |
Total consumer and other | 134 | 157 |
Total gross loans and leases receivable | 70,207 | 66,721 |
Category as a % of total portfolio | 7.15% | 7.31% |
Category III | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial real estate — owner occupied | 10,802 | 17,351 |
Commercial real estate — non-owner occupied | 21,103 | 22,992 |
Construction and land development | 7,754 | 8,384 |
Multi-family | 0 | 790 |
1-4 family | 3,312 | 7,873 |
Total commercial real estate | 42,971 | 57,390 |
Commercial and industrial | 5,712 | 10,170 |
Direct financing leases, net | 473 | 1,543 |
Home equity and second mortgages | 150 | 220 |
Other | 0 | 0 |
Total consumer and other | 150 | 220 |
Total gross loans and leases receivable | 49,306 | 69,323 |
Category as a % of total portfolio | 5.02% | 7.60% |
Category IV | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial real estate — owner occupied | 339 | 769 |
Commercial real estate — non-owner occupied | 283 | 3,231 |
Construction and land development | 5,489 | 5,411 |
Multi-family | 31 | 46 |
1-4 family | 666 | 1,158 |
Total commercial real estate | 6,808 | 10,615 |
Commercial and industrial | 8,043 | 2,842 |
Direct financing leases, net | 0 | 0 |
Home equity and second mortgages | 580 | 740 |
Other | 795 | 1,030 |
Total consumer and other | 1,375 | 1,770 |
Total gross loans and leases receivable | $16,226 | $15,227 |
Category as a % of total portfolio | 1.65% | 1.67% |
Loan_and_Lease_Receivables_Imp5
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Past Due Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | $1,944 | $2,756 |
60-89 days past due | 1,587 | 0 |
Greater than 90 days past due | 1,310 | 3,225 |
Total past due | 4,841 | 5,981 |
Current | 977,131 | 906,727 |
Non-accruing loans and leases | 15,855 | 14,122 |
Total gross loans and leases receivable | 981,972 | 912,708 |
30 to 59 days past due, percent of total portfolio | 0.20% | 0.30% |
60 to 89 days past due, percent of total portfolio | 0.16% | 0.00% |
Greater than 90 days past due, percent of portfolio | 0.13% | 0.36% |
Past due, percent of total portfolio | 0.49% | 0.66% |
Current, percent of total portfolio | 99.51% | 99.34% |
Gross loans, percent of total portfolio | 100.00% | 100.00% |
Commercial real estate — owner occupied | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 210 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 254 | 117 |
Total past due | 254 | 327 |
Current | 140,910 | 144,661 |
Non-accruing loans and leases | 339 | 769 |
Total gross loans and leases receivable | 141,164 | 144,988 |
Commercial real estate — non-owner occupied | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 2,415 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 444 |
Total past due | 0 | 2,859 |
Current | 341,695 | 320,801 |
Non-accruing loans and leases | 283 | 2,871 |
Total gross loans and leases receivable | 341,695 | 323,660 |
Construction and land development | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 471 |
Total past due | 0 | 471 |
Current | 68,708 | 64,495 |
Non-accruing loans and leases | 5,422 | 4,946 |
Total gross loans and leases receivable | 68,708 | 64,966 |
Multi-family | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 62,758 | 58,454 |
Non-accruing loans and leases | 31 | 46 |
Total gross loans and leases receivable | 62,758 | 58,454 |
1-4 family | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 74 |
60-89 days past due | 180 | 0 |
Greater than 90 days past due | 123 | 482 |
Total past due | 303 | 556 |
Current | 30,483 | 31,387 |
Non-accruing loans and leases | 521 | 1,006 |
Total gross loans and leases receivable | 30,786 | 31,943 |
Commercial & industrial | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 1,944 | 57 |
60-89 days past due | 1,407 | 0 |
Greater than 90 days past due | 53 | 560 |
Total past due | 3,404 | 617 |
Current | 290,148 | 255,841 |
Non-accruing loans and leases | 8,011 | 2,842 |
Total gross loans and leases receivable | 293,552 | 256,458 |
Direct financing leases, net | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 26,065 | 15,926 |
Non-accruing loans and leases | 0 | 0 |
Total gross loans and leases receivable | 26,065 | 15,926 |
Home equity and second mortgages | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 85 | 121 |
Total past due | 85 | 121 |
Current | 5,187 | 4,521 |
Non-accruing loans and leases | 453 | 612 |
Total gross loans and leases receivable | 5,272 | 4,642 |
Other | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 795 | 1,030 |
Total past due | 795 | 1,030 |
Current | 11,177 | 10,641 |
Non-accruing loans and leases | 795 | 1,030 |
Total gross loans and leases receivable | 11,972 | 11,671 |
Accruing loans and leases | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 210 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 210 |
Current | 966,117 | 898,376 |
Accruing loans and leases | 966,117 | 898,586 |
Accruing loans and leases | Commercial real estate — owner occupied | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 210 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 210 |
Current | 140,825 | 144,009 |
Accruing loans and leases | 140,825 | 144,219 |
Accruing loans and leases | Commercial real estate — non-owner occupied | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 341,412 | 320,789 |
Accruing loans and leases | 341,412 | 320,789 |
Accruing loans and leases | Construction and land development | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 63,286 | 60,020 |
Accruing loans and leases | 63,286 | 60,020 |
Accruing loans and leases | Multi-family | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 62,727 | 58,408 |
Accruing loans and leases | 62,727 | 58,408 |
Accruing loans and leases | 1-4 family | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 30,265 | 30,937 |
Accruing loans and leases | 30,265 | 30,937 |
Accruing loans and leases | Commercial & industrial | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 285,541 | 253,616 |
Accruing loans and leases | 285,541 | 253,616 |
Accruing loans and leases | Direct financing leases, net | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 26,065 | 15,926 |
Accruing loans and leases | 26,065 | 15,926 |
Accruing loans and leases | Home equity and second mortgages | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 4,819 | 4,030 |
Accruing loans and leases | 4,819 | 4,030 |
Accruing loans and leases | Other | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 11,177 | 10,641 |
Accruing loans and leases | 11,177 | 10,641 |
Non-accruing loans and leases | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 1,944 | 2,546 |
60-89 days past due | 1,587 | 0 |
Greater than 90 days past due | 1,310 | 3,225 |
Total past due | 4,841 | 5,771 |
Current | 11,014 | 8,351 |
Non-accruing loans and leases | 15,855 | 14,122 |
Non-accruing loans and leases | Commercial real estate — owner occupied | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 254 | 117 |
Total past due | 254 | 117 |
Current | 85 | 652 |
Non-accruing loans and leases | 339 | 769 |
Non-accruing loans and leases | Commercial real estate — non-owner occupied | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 2,415 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 444 |
Total past due | 0 | 2,859 |
Current | 283 | 12 |
Non-accruing loans and leases | 283 | 2,871 |
Non-accruing loans and leases | Construction and land development | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 471 |
Total past due | 0 | 471 |
Current | 5,422 | 4,475 |
Non-accruing loans and leases | 5,422 | 4,946 |
Non-accruing loans and leases | Multi-family | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 31 | 46 |
Non-accruing loans and leases | 31 | 46 |
Non-accruing loans and leases | 1-4 family | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 74 |
60-89 days past due | 180 | 0 |
Greater than 90 days past due | 123 | 482 |
Total past due | 303 | 556 |
Current | 218 | 450 |
Non-accruing loans and leases | 521 | 1,006 |
Non-accruing loans and leases | Commercial & industrial | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 1,944 | 57 |
60-89 days past due | 1,407 | 0 |
Greater than 90 days past due | 53 | 560 |
Total past due | 3,404 | 617 |
Current | 4,607 | 2,225 |
Non-accruing loans and leases | 8,011 | 2,842 |
Non-accruing loans and leases | Direct financing leases, net | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 0 | 0 |
Total past due | 0 | 0 |
Current | 0 | 0 |
Non-accruing loans and leases | 0 | 0 |
Non-accruing loans and leases | Home equity and second mortgages | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 85 | 121 |
Total past due | 85 | 121 |
Current | 368 | 491 |
Non-accruing loans and leases | 453 | 612 |
Non-accruing loans and leases | Other | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' |
30-59 days past due | 0 | 0 |
60-89 days past due | 0 | 0 |
Greater than 90 days past due | 795 | 1,030 |
Total past due | 795 | 1,030 |
Current | 0 | 0 |
Non-accruing loans and leases | $795 | $1,030 |
Loan_and_Lease_Receivables_Imp6
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Non-accrual Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | $15,855 | $14,122 | ' |
Foreclosed properties, net | 333 | 1,574 | 2,236 |
Total non-performing assets | 16,188 | 15,696 | ' |
Performing troubled debt restructurings | 371 | 1,105 | ' |
Total impaired assets | 16,559 | 16,801 | ' |
Total non-accrual loans and leases to gross loans and leases | 1.61% | 1.55% | ' |
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 1.65% | 1.72% | ' |
Total non-performing assets to total assets | 1.28% | 1.28% | ' |
Allowance for loan and lease losses to gross loans and leases | 1.42% | 1.69% | ' |
Allowance for loan and lease losses to non-accrual loans and leases | 87.68% | 109.05% | ' |
Commercial real estate — owner occupied | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 339 | 769 | ' |
Commercial real estate — non-owner occupied | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 283 | 2,871 | ' |
Construction and land development | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 5,422 | 4,946 | ' |
Multi-family | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 31 | 46 | ' |
1-4 family | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 521 | 1,006 | ' |
Total commercial real estate | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 6,596 | 9,638 | ' |
Allowance for loan and lease losses to gross loans and leases | 1.40% | 1.71% | ' |
Commercial & industrial | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 8,011 | 2,842 | ' |
Allowance for loan and lease losses to gross loans and leases | 1.44% | 1.61% | ' |
Direct financing leases, net | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 0 | 0 | ' |
Allowance for loan and lease losses to gross loans and leases | 1.30% | 1.30% | ' |
Home equity and second mortgages | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 453 | 612 | ' |
Other | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | 795 | 1,030 | ' |
Total consumer and other loans | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Non-accruing loans and leases | $1,248 | $1,642 | ' |
Allowance for loan and lease losses to gross loans and leases | 1.58% | 2.27% | ' |
Loan_and_Lease_Receivables_Imp7
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | loans | loans |
Troubled debt restructurings: | ' | ' |
Number of Loans | 30 | 43 |
Pre-Modification Recorded Investment | $12,413 | $16,316 |
Post-Modification Recorded Investment | 8,493 | 9,925 |
Commercial real estate — owner occupied | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 1 | 5 |
Pre-Modification Recorded Investment | 110 | 338 |
Post-Modification Recorded Investment | 84 | 303 |
Commercial real estate — non-owner occupied | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 3 | 5 |
Pre-Modification Recorded Investment | 385 | 885 |
Post-Modification Recorded Investment | 283 | 803 |
Construction and land development | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 3 | 4 |
Pre-Modification Recorded Investment | 6,060 | 8,044 |
Post-Modification Recorded Investment | 5,489 | 4,953 |
Multi-family | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 1 | 1 |
Pre-Modification Recorded Investment | 184 | 184 |
Post-Modification Recorded Investment | 31 | 47 |
1-4 family | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 10 | 13 |
Pre-Modification Recorded Investment | 911 | 1,674 |
Post-Modification Recorded Investment | 666 | 1,132 |
Commercial & industrial | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 5 | 7 |
Pre-Modification Recorded Investment | 1,935 | 2,250 |
Post-Modification Recorded Investment | 565 | 931 |
Home equity and second mortgages | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 6 | 7 |
Pre-Modification Recorded Investment | 752 | 865 |
Post-Modification Recorded Investment | 580 | 726 |
Other | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 1 | 1 |
Pre-Modification Recorded Investment | 2,076 | 2,076 |
Post-Modification Recorded Investment | $795 | $1,030 |
Loan_and_Lease_Receivables_Imp8
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Troubled Debt Restructurings by Modification Type) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | loans | loans |
Troubled debt restructurings: | ' | ' |
Number of Loans | 30 | 43 |
Recorded Investment | $8,493 | $9,925 |
Commercial real estate | Extension of term | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 1 | 2 |
Recorded Investment | 55 | 117 |
Commercial real estate | Combination of extension and interest rate concession | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 17 | 26 |
Recorded Investment | 6,498 | 7,121 |
Commercial & industrial | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 5 | 7 |
Recorded Investment | 565 | 931 |
Commercial & industrial | Extension of term | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 1 | 3 |
Recorded Investment | 49 | 241 |
Commercial & industrial | Combination of extension and interest rate concession | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 4 | 4 |
Recorded Investment | 516 | 689 |
Consumer and other | Extension of term | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 2 | 2 |
Recorded Investment | 880 | 1,117 |
Consumer and other | Combination of extension and interest rate concession | ' | ' |
Troubled debt restructurings: | ' | ' |
Number of Loans | 5 | 6 |
Recorded Investment | $495 | $640 |
Loan_and_Lease_Receivables_Imp9
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Impaired Loans and Leases) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Recorded investment | ' | ' |
With no impairment reserve recorded | $8,200 | $11,006 |
With impairment reserve recorded | 8,026 | 4,221 |
Total | 16,226 | 15,227 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 12,115 | 15,698 |
With impairment reserve recorded | 8,066 | 6,911 |
Total | 20,181 | 22,609 |
Impairment reserve | ' | ' |
Impairment reserve | 402 | 1,517 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 10,824 | 15,135 |
With impairment reserve recorded | 1,260 | 2,810 |
Total | 12,084 | 17,945 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 816 | 1,161 |
With impairment reserve recorded | 71 | 271 |
Total | 887 | 1,432 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 221 | 321 |
With impairment reserve recorded | 0 | 0 |
Total | 221 | 321 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | 595 | 840 |
With impairment reserve recorded | 71 | 271 |
Total | 666 | 1,111 |
Commercial real estate — owner occupied | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 339 | 741 |
With impairment reserve recorded | 0 | 28 |
Total | 339 | 769 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 339 | 741 |
With impairment reserve recorded | 0 | 28 |
Total | 339 | 769 |
Impairment reserve | ' | ' |
Impairment reserve | 0 | 16 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 715 | 1,482 |
With impairment reserve recorded | 0 | 30 |
Total | 715 | 1,512 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 57 | 142 |
With impairment reserve recorded | 0 | 2 |
Total | 57 | 144 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 50 | 2 |
With impairment reserve recorded | 0 | 0 |
Total | 50 | 2 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | 7 | 140 |
With impairment reserve recorded | 0 | 2 |
Total | 7 | 142 |
Commercial real estate — non-owner occupied | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 229 | 648 |
With impairment reserve recorded | 54 | 2,582 |
Total | 283 | 3,230 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 229 | 648 |
With impairment reserve recorded | 94 | 2,582 |
Total | 323 | 3,230 |
Impairment reserve | ' | ' |
Impairment reserve | 54 | 829 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 1,586 | 1,239 |
With impairment reserve recorded | 88 | 162 |
Total | 1,674 | 1,401 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 198 | 222 |
With impairment reserve recorded | 6 | 33 |
Total | 204 | 255 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 17 | 207 |
With impairment reserve recorded | 0 | 0 |
Total | 17 | 207 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | 181 | 15 |
With impairment reserve recorded | 6 | 33 |
Total | 187 | 48 |
Construction and land development | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 5,489 | 4,946 |
With impairment reserve recorded | 0 | 465 |
Total | 5,489 | 5,411 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 8,160 | 8,537 |
With impairment reserve recorded | 0 | 465 |
Total | 8,160 | 9,002 |
Impairment reserve | ' | ' |
Impairment reserve | 0 | 174 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 5,777 | 5,834 |
With impairment reserve recorded | 0 | 528 |
Total | 5,777 | 6,362 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 203 | 246 |
With impairment reserve recorded | 0 | 15 |
Total | 203 | 261 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 3 | 24 |
With impairment reserve recorded | 0 | 0 |
Total | 3 | 24 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | 200 | 222 |
With impairment reserve recorded | 0 | 15 |
Total | 200 | 237 |
Multi-family | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 31 | 47 |
With impairment reserve recorded | 0 | 0 |
Total | 31 | 47 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 398 | 414 |
With impairment reserve recorded | 0 | 0 |
Total | 398 | 414 |
Impairment reserve | ' | ' |
Impairment reserve | 0 | 0 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 366 | 313 |
With impairment reserve recorded | 0 | 0 |
Total | 366 | 313 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 93 | 69 |
With impairment reserve recorded | 0 | 0 |
Total | 93 | 69 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 0 | 60 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 60 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | 93 | 9 |
With impairment reserve recorded | 0 | 0 |
Total | 93 | 9 |
1-4 family | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 244 | 544 |
With impairment reserve recorded | 422 | 614 |
Total | 666 | 1,158 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 244 | 677 |
With impairment reserve recorded | 422 | 614 |
Total | 666 | 1,291 |
Impairment reserve | ' | ' |
Impairment reserve | 155 | 224 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 405 | 2,213 |
With impairment reserve recorded | 437 | 637 |
Total | 842 | 2,850 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 31 | 151 |
With impairment reserve recorded | 18 | 36 |
Total | 49 | 187 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 34 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 34 | 0 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | -3 | 151 |
With impairment reserve recorded | 18 | 36 |
Total | 15 | 187 |
Commercial & industrial | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 555 | 2,394 |
With impairment reserve recorded | 7,488 | 447 |
Total | 8,043 | 2,841 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 766 | 2,404 |
With impairment reserve recorded | 7,488 | 3,137 |
Total | 8,254 | 5,541 |
Impairment reserve | ' | ' |
Impairment reserve | 131 | 187 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 434 | 1,987 |
With impairment reserve recorded | 670 | 1,350 |
Total | 1,104 | 3,337 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 97 | 163 |
With impairment reserve recorded | 42 | 178 |
Total | 139 | 341 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 114 | 25 |
With impairment reserve recorded | 0 | 0 |
Total | 114 | 25 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | -17 | 138 |
With impairment reserve recorded | 42 | 178 |
Total | 25 | 316 |
Direct financing leases, net | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Impairment reserve | ' | ' |
Impairment reserve | 0 | 0 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 6 | 4 |
With impairment reserve recorded | 0 | 0 |
Total | 6 | 4 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 0 | 1 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 1 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | 0 | -1 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | -1 |
Home equity and second mortgages | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 518 | 656 |
With impairment reserve recorded | 62 | 85 |
Total | 580 | 741 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 518 | 657 |
With impairment reserve recorded | 62 | 85 |
Total | 580 | 742 |
Impairment reserve | ' | ' |
Impairment reserve | 62 | 87 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 593 | 913 |
With impairment reserve recorded | 65 | 103 |
Total | 658 | 1,016 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 37 | 55 |
With impairment reserve recorded | 5 | 7 |
Total | 42 | 62 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 3 | 1 |
With impairment reserve recorded | 0 | 0 |
Total | 3 | 1 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | 34 | 54 |
With impairment reserve recorded | 5 | 7 |
Total | 39 | 61 |
Other | ' | ' |
Recorded investment | ' | ' |
With no impairment reserve recorded | 795 | 1,030 |
With impairment reserve recorded | 0 | 0 |
Total | 795 | 1,030 |
Unpaid principal balance | ' | ' |
With no impairment reserve recorded | 1,461 | 1,620 |
With impairment reserve recorded | 0 | 0 |
Total | 1,461 | 1,620 |
Impairment reserve | ' | ' |
Impairment reserve | 0 | 0 |
Average recorded investment | ' | ' |
With no impairment reserve recorded | 942 | 1,150 |
With impairment reserve recorded | 0 | 0 |
Total | 942 | 1,150 |
Foregone interest income | ' | ' |
With no impairment reserve recorded | 100 | 113 |
With impairment reserve recorded | 0 | 0 |
Total | 100 | 113 |
Interest income recognized | ' | ' |
With no impairment reserve recorded | 0 | 1 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 1 |
Net foregone interest income | ' | ' |
With no impairment reserve recorded | 100 | 112 |
With impairment reserve recorded | 0 | 0 |
Total | $100 | $112 |
Recovered_Sheet1
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Allowance for Loan and Lease Losses) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for credit losses: | ' | ' |
Beginning balance | $15,400 | $14,155 |
Charge-offs | -914 | -3,479 |
Recoveries | 374 | 481 |
Provision | -959 | 4,243 |
Ending balance | 13,901 | 15,400 |
Ending balance: individually evaluated for impairment | 402 | 1,517 |
Ending balance: collectively evaluated for impairment | 13,499 | 13,883 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 |
Loans and lease receivables: | ' | ' |
Total gross loans and leases receivable | 981,972 | 912,708 |
Ending balance: individually evaluated for impairment | 14,797 | 15,227 |
Ending balance: collectively evaluated for impairment | 965,746 | 897,481 |
Ending balance: loans acquired with deteriorated credit quality | 1,429 | 0 |
Allowance as % of gross loans | 1.42% | 1.69% |
Commercial real estate | ' | ' |
Allowance for credit losses: | ' | ' |
Beginning balance | 10,693 | 9,554 |
Charge-offs | -896 | -612 |
Recoveries | 353 | 375 |
Provision | -1,095 | 1,376 |
Ending balance | 9,055 | 10,693 |
Ending balance: individually evaluated for impairment | 209 | 1,244 |
Ending balance: collectively evaluated for impairment | 8,846 | 9,449 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 |
Loans and lease receivables: | ' | ' |
Total gross loans and leases receivable | 645,111 | 624,011 |
Ending balance: individually evaluated for impairment | 5,379 | 10,614 |
Ending balance: collectively evaluated for impairment | 638,303 | 613,397 |
Ending balance: loans acquired with deteriorated credit quality | 1,429 | 0 |
Allowance as % of gross loans | 1.40% | 1.71% |
Commercial & industrial | ' | ' |
Allowance for credit losses: | ' | ' |
Beginning balance | 4,129 | 3,977 |
Charge-offs | -14 | -2,739 |
Recoveries | 11 | 66 |
Provision | 109 | 2,825 |
Ending balance | 4,235 | 4,129 |
Ending balance: individually evaluated for impairment | 131 | 186 |
Ending balance: collectively evaluated for impairment | 4,104 | 3,943 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 |
Loans and lease receivables: | ' | ' |
Total gross loans and leases receivable | 293,552 | 256,458 |
Ending balance: individually evaluated for impairment | 8,043 | 2,842 |
Ending balance: collectively evaluated for impairment | 285,509 | 253,616 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 |
Allowance as % of gross loans | 1.44% | 1.61% |
Consumer and other | ' | ' |
Allowance for credit losses: | ' | ' |
Beginning balance | 371 | 384 |
Charge-offs | -4 | -128 |
Recoveries | 5 | 40 |
Provision | -99 | 75 |
Ending balance | 273 | 371 |
Ending balance: individually evaluated for impairment | 62 | 87 |
Ending balance: collectively evaluated for impairment | 211 | 284 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 |
Loans and lease receivables: | ' | ' |
Total gross loans and leases receivable | 17,244 | 16,313 |
Ending balance: individually evaluated for impairment | 1,375 | 1,771 |
Ending balance: collectively evaluated for impairment | 15,869 | 14,542 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 |
Allowance as % of gross loans | 1.58% | 2.27% |
Direct financing leases, net | ' | ' |
Allowance for credit losses: | ' | ' |
Beginning balance | 207 | 240 |
Charge-offs | 0 | 0 |
Recoveries | 5 | 0 |
Provision | 126 | -33 |
Ending balance | 338 | 207 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 338 | 207 |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 |
Loans and lease receivables: | ' | ' |
Total gross loans and leases receivable | 26,065 | 15,926 |
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 26,065 | 15,926 |
Ending balance: loans acquired with deteriorated credit quality | $0 | $0 |
Allowance as % of gross loans | 1.30% | 1.30% |
Recovered_Sheet2
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses Net Investment In Direct Financing Leases (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Minimum lease payments receivable | $24,658 | $12,951 |
Estimated unguaranteed residual values in leased property | 4,546 | 4,366 |
Initial direct costs | 226 | 29 |
Less unearned lease and residual income | -3,365 | -1,420 |
Investment in commercial direct financing leases | $26,065 | $15,926 |
Recovered_Sheet3
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses Future Minimum Lease Payments To Be Received (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Direct Financing Leases, Future Minimum Payments Receivable By Year [Abstract] | ' |
2014 | $6,429 |
2015 | 5,332 |
2016 | 4,256 |
2017 | 3,214 |
2018 | 2,494 |
Thereafter | 2,933 |
Total | $24,658 |
Recovered_Sheet4
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Narrative Disclosures) (Details) (USD $) | 12 Months Ended | 29 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | Jun. 30, 2013 | |
loans | loans | |||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' |
Loans and leases transferred to third parties total principal amount | $46,200,000 | $58,300,000 | ' | ' |
Total loans and leases transferred to third parties that qualify for sale accounting | 46,200,000 | 58,300,000 | ' | ' |
Loan participations purchased on the Corporation's balance sheet | 498,000 | 765,000 | ' | ' |
Total amount of outstanding loans transferred to third parties as loan participations | 52,100,000 | 50,100,000 | ' | ' |
Total amount of loan participations remaining on the Corporation's balance sheet | 77,200,000 | 71,900,000 | ' | ' |
Loans in the participation sold portfolio, considered impaired | 0 | 3,200,000 | ' | ' |
Charge-offs to specific credits within the retained portion of the participation sold portfolio | ' | ' | 2,700,000 | ' |
Deteriorated loans acquired in transfer, acquired in period, number | ' | ' | ' | 1 |
Certain loans acquired in transfer, acquired during period, contractually required payments receivable at acquisition | ' | ' | ' | 3,200,000 |
Certain loans acquired in transfer, acquired during period, at acquisition, at fair value | ' | ' | ' | 1,500,000 |
Certain loans acquired in transfer, carrying amount, net | 1,400,000 | ' | ' | ' |
Certain loans acquired in transfer, provision for loan losses | 0 | ' | ' | ' |
Loans to executive officers, directors and their related interests | 3,000,000 | 11,400,000 | ' | ' |
New loans granted to executive officers, directors and their related interests | 1,600,000 | 1,400,000 | ' | ' |
Repayments on loans to executive officers, directors and their related interests | 10,000,000 | 1,200,000 | ' | ' |
Loans and leases receivable, related parties, impaired | 0 | ' | ' | ' |
Total gross loans and leases receivable | 981,972,000 | 912,708,000 | ' | ' |
Non-accrual troubled debt restructurings | 8,100,000 | 8,800,000 | ' | ' |
Unfunded commitments, troubled debt restructurings | 0 | ' | ' | ' |
Troubled debt restructurings, subsequent default, number of loans | 0 | ' | ' | ' |
Loans and leases receivable, difference between recorded investment and unpaid principal balance | 4,000,000 | 7,400,000 | ' | ' |
Performing troubled debt restructurings | 371,000 | 1,105,000 | ' | ' |
Impairments of residual value of leased property | 0 | 0 | ' | ' |
Substandard | ' | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' |
Total gross loans and leases receivable | 22,800,000 | 22,000,000 | ' | ' |
Special Mention | ' | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' |
Total gross loans and leases receivable | 0 | 0 | ' | ' |
Doubtful | ' | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' |
Total gross loans and leases receivable | 0 | 0 | ' | ' |
Loss | ' | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' |
Total gross loans and leases receivable | $0 | $0 | ' | ' |
Leasehold_Improvements_and_Equ2
Leasehold Improvements and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Leasehold improvements | $1,547 | $1,263 |
Furniture and equipment | 3,257 | 3,031 |
Construction and purchases in progress | 0 | 77 |
Total leasehold improvements and equipment, gross | 4,804 | 4,371 |
Less: accumulated depreciation | -3,649 | -3,403 |
Total leasehold improvements and equipment, net | $1,155 | $968 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ' | ' |
Accrued interest receivable | $3,231 | $3,217 |
Deferred tax assets, net | 3,722 | 4,583 |
Investment in limited partnerships | 2,141 | 2,000 |
Investment in Trust II | 315 | 315 |
Fair value of interest rate swaps | 946 | 3,069 |
Prepaid expenses | 1,224 | 1,453 |
Other | 2,737 | 2,771 |
Total accrued interest receivable and other assets | $14,316 | $17,408 |
Other_Assets_Investments_in_Li
Other Assets Investments in Limited Partnerships (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Share of the partnerships’ income | ($437,000) | $678,000 |
Investment in limited partnerships | 2,141,000 | 2,000,000 |
Remaining commitment to provide funds to Aldine Capital Fund, LP | 960,000 | ' |
Remaining commitment to provide funds to Aldine Capital Fund II, LP | 3,800,000 | ' |
Aldine Capital Fund, LP | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investment in limited partnerships | 1,200,000 | 2,000,000 |
Aldine Capital Fund II, LP | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investment in limited partnerships | 942,000 | ' |
Chapel Valley Senior Housing, LP | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Cost method investments | $0 | $0 |
Other_Assets_Narrative_Details
Other Assets Narrative (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 26, 2008 |
In Thousands, unless otherwise specified | Trust II | ||
Variable Interest Entity [Line Items] | ' | ' | ' |
Sole ownership of common securities issued by Trust II | $315 | ' | ' |
Trust preferred securities | 10,000 | 10,000 | 10,000 |
Trust preferred securities fixed rate | ' | ' | 10.50% |
Investment in Trust II | $315 | $315 | ' |
Deposits_Details
Deposits (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Deposit [Line Items] | ' | ' |
Deposits | $1,129,855 | $1,092,254 |
Deposits, weighted average balance | 1,106,058 | 1,049,681 |
Deposits, weighted average interest rate during the period | 0.88% | 1.24% |
Non-interest-bearing transaction accounts | ' | ' |
Deposit [Line Items] | ' | ' |
Deposits | 151,275 | 161,985 |
Deposits, weighted average balance | 138,920 | 137,117 |
Deposits, weighted average interest rate during the period | 0.00% | 0.00% |
Interest-bearing transaction accounts | ' | ' |
Deposit [Line Items] | ' | ' |
Deposits | 77,004 | 43,542 |
Deposits, weighted average balance | 62,578 | 34,180 |
Deposits, weighted average interest rate during the period | 0.20% | 0.28% |
Money market accounts | ' | ' |
Deposit [Line Items] | ' | ' |
Deposits | 456,065 | 443,743 |
Deposits, weighted average balance | 450,558 | 395,259 |
Deposits, weighted average interest rate during the period | 0.53% | 0.76% |
Certificates of deposit | ' | ' |
Deposit [Line Items] | ' | ' |
Deposits | 51,979 | 68,599 |
Deposits, weighted average balance | 60,276 | 82,430 |
Deposits, weighted average interest rate during the period | 1.01% | 1.17% |
Brokered certificates of deposit | ' | ' |
Deposit [Line Items] | ' | ' |
Deposits | 393,532 | 374,385 |
Deposits, weighted average balance | $393,726 | $400,695 |
Deposits, weighted average interest rate during the period | 1.68% | 2.23% |
Deposits_Time_deposits_by_matu
Deposits Time deposits by maturity (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Time Deposits, Fiscal Year Maturity [Abstract] | ' |
2014 | $173,077 |
2015 | 117,382 |
2016 | 58,087 |
2017 | 31,571 |
2018 | 23,357 |
Thereafter | 42,037 |
Total | $445,511 |
Deposits_Deposits_Narrative_De
Deposits Deposits Narrative (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Time deposits, $100,000 or more | $23.20 | $35.60 |
FHLB_Advances_Other_Borrowings2
FHLB Advances, Other Borrowings and Junior Subordinated Notes (Composition of Borrowed Funds) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 07, 2014 |
Composition of Borrowed Funds [Line Items] | ' | ' | ' |
Borrowed funds | $22,251 | $22,720 | ' |
Borrowed funds, weighted average balance | 28,982 | 51,733 | ' |
Borrowed funds, interest rate during period | 6.78% | 7.46% | ' |
Long-term borrowings | ' | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' | ' |
Borrowed funds | 22,241 | 22,241 | ' |
Short-term borrowings | ' | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' | ' |
Borrowed funds | 10 | 479 | ' |
Federal funds purchased | ' | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' | ' |
Borrowed funds | 0 | 0 | ' |
Borrowed funds, weighted average balance | 260 | 237 | ' |
Borrowed funds, interest rate during period | 0.74% | 0.82% | ' |
FHLB advances | ' | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' | ' |
Borrowed funds | 0 | 469 | ' |
Borrowed funds, weighted average balance | 6,471 | 2,034 | ' |
Borrowed funds, interest rate during period | 0.19% | 1.59% | ' |
Line of credit | ' | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' | ' |
Borrowed funds | 10 | 10 | ' |
Borrowed funds, weighted average balance | 10 | 1,666 | ' |
Borrowed funds, interest rate during period | 3.41% | 4.07% | ' |
Subordinated notes payable | ' | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' | ' |
Borrowed funds | 11,926 | 11,926 | 7,900 |
Borrowed funds, weighted average balance | 11,926 | 37,481 | ' |
Borrowed funds, interest rate during period | 6.92% | 7.02% | ' |
Junior subordinated notes | ' | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' | ' |
Borrowed funds | 10,315 | 10,315 | ' |
Borrowed funds, weighted average balance | $10,315 | $10,315 | ' |
Borrowed funds, interest rate during period | 10.78% | 10.81% | ' |
FHLB_Advances_Other_Borrowings3
FHLB Advances, Other Borrowings and Junior Subordinated Notes FHLB Borrowings (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Line of Credit Facility [Line Items] | ' | ' |
Borrowed funds | $22,251,000 | $22,720,000 |
Loans pledged as collateral for Federal Home Loan Bank advances and unused available credit | 37,100,000 | 35,400,000 |
Collateralized mortgage obligations pledged as collateral for Federal Home Loan Bank advances and unused available credit | 39,500,000 | 18,900,000 |
FHLB advances | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Federal Home Loan Bank line of credit maximum available | 65,800,000 | ' |
Federal Home Loan Bank unused line remaining | 65,800,000 | ' |
Line of credit, amount outstanding | 0 | 0 |
Minimum | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Federal Home Loan Bank, advances, interest rate at period end | ' | 5.91% |
Maximum | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Federal Home Loan Bank, advances, interest rate at period end | ' | 6.06% |
FHLB advances | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Borrowed funds | $0 | $469,000 |
FHLB_Advances_Other_Borrowings4
FHLB Advances, Other Borrowings and Junior Subordinated Notes Line of credit type (Details) (Line of credit, USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Feb. 19, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Interest rate floor debt | |||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' |
Senior line of credit with a third-party financial institution | $10,500,000 | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | 2.75% | 2.75% | ' |
Interest rate floor | ' | ' | 3.25% | ' | 3.25% |
Line of credit - unused line fee | $13,000 | $11,000 | ' | ' | ' |
FHLB_Advances_Other_Borrowings5
FHLB Advances, Other Borrowings and Junior Subordinated Notes Subordinated notes payable and junior subordinated notes payable (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||
Jan. 17, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Mar. 07, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 07, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
Subordinated debt - third party financial institution | Subordinated debt - third party financial institution | Subordinated debt - third party financial institution | Subordinated debt - private placement | Junior subordinated notes | Subordinated debt - private placement | Subordinated notes payable | Subordinated notes payable | Subordinated notes payable | London Interbank Offered Rate (LIBOR) | Interest rate floor debt | |||||
Subordinated debt - third party financial institution | Subordinated debt - third party financial institution | ||||||||||||||
Subordinated Borrowing [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowed funds | ' | $22,251,000 | $22,720,000 | ' | ' | ' | ' | ' | ' | ' | $7,900,000 | $11,926,000 | $11,926,000 | ' | ' |
Subordinated notes payable | ' | ' | ' | ' | 1,700,000 | 5,700,000 | 39,000,000 | 6,200,000 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.75% | ' |
Interest rate floor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% |
Subordinated debt, fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' |
Repayment of subordinated notes payable | 4,000,000 | 0 | 33,289,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Junior subordinated notes | ' | 10,315,000 | 10,315,000 | ' | ' | ' | ' | ' | 10,315,000 | ' | ' | ' | ' | ' | ' |
Junior subordinated notes fixed rate | ' | ' | ' | ' | ' | ' | ' | ' | 10.50% | ' | ' | ' | ' | ' | ' |
Debt issuance cost | ' | ' | ' | 428,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs, unamortized | ' | $353,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FHLB_Advances_Other_Borrowings6
FHLB Advances, Other Borrowings and Junior Subordinated Notes Trust II Issuance Of Trust Preferred Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 26, 2008 |
In Thousands, unless otherwise specified | Trust II | ||
Variable Interest Entity [Line Items] | ' | ' | ' |
Trust preferred securities | $10,000 | $10,000 | $10,000 |
Trust preferred securities fixed rate | ' | ' | 10.50% |
Sole ownership of common securities issued by Trust II | $315 | ' | ' |
FHLB_Advances_Other_Borrowings7
FHLB Advances, Other Borrowings and Junior Subordinated Notes (Narrative Disclosures) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ' | ' |
Securities sold under agreements to repurchase | $0 | $0 |
Federal funds purchased | 0 | 0 |
Gross amount raised through stock offering | 29,100,000 | ' |
Issuance of common stock, shares | ' | 1,265,000 |
Issuance of common stock, price per share | ' | $23 |
Proceeds from issuance of common stock | $0 | $27,074,000 |
Stockholders_Equity_and_Regula2
Stockholders' Equity and Regulatory Capital (Regulatory Capital Ratios) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ' | ' |
Total Capital | $145,352 | $132,042 |
Total Capital to Risk-Weighted Assets | 13.16% | 12.97% |
Total Capital, Minimum Required for Capital Adequacy Purposes | 88,373 | 81,452 |
Total Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Tier 1 Capital | 119,617 | 107,356 |
Tier 1 Capital to Risk-Weighted Assets | 10.83% | 10.54% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | 44,186 | 40,726 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Tier 1 Capital | 119,617 | 107,356 |
Tier 1 Capital to Average Assets | 9.35% | 8.99% |
Tier 1 Leverage Capital, Minimum Required for Capital Adequacy Purposes | 51,153 | 47,750 |
Tier 1 Leverage Capital to Average Assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
First Business Bank | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations | ' | ' |
Total Capital | 123,331 | 115,613 |
Total Capital to Risk-Weighted Assets | 12.57% | 12.73% |
Total Capital, Minimum Required for Capital Adequacy Purposes | 78,516 | 72,640 |
Total Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Total Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 98,145 | 90,800 |
Total Capital to Risk-Weighted Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 Capital | 111,062 | 104,232 |
Tier 1 Capital to Risk-Weighted Assets | 11.32% | 11.48% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | 39,258 | 36,320 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 58,887 | 54,480 |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 6.00% | 6.00% |
Tier 1 Capital | 111,062 | 104,232 |
Tier 1 Capital to Average Assets | 10.35% | 10.49% |
Tier 1 Leverage Capital, Minimum Required for Capital Adequacy Purposes | 42,913 | 39,731 |
Tier 1 Leverage Capital to Average Assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Tier 1 Leverage Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 53,641 | 49,664 |
Tier 1 Leverage Capital to Average Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 5.00% | 5.00% |
First Business Bank – Milwaukee | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations | ' | ' |
Total Capital | 17,944 | 15,743 |
Total Capital to Risk-Weighted Assets | 14.66% | 14.60% |
Total Capital, Minimum Required for Capital Adequacy Purposes | 9,790 | 8,626 |
Total Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Total Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 12,238 | 10,783 |
Total Capital to Risk-Weighted Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 Capital | 16,414 | 14,392 |
Tier 1 Capital to Risk-Weighted Assets | 13.41% | 13.35% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | 4,895 | 4,313 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 7,343 | 6,470 |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 6.00% | 6.00% |
Tier 1 Capital | 16,414 | 14,392 |
Tier 1 Capital to Average Assets | 7.64% | 6.72% |
Tier 1 Leverage Capital, Minimum Required for Capital Adequacy Purposes | 8,595 | 8,563 |
Tier 1 Leverage Capital to Average Assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Tier 1 Leverage Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $10,744 | $10,703 |
Tier 1 Leverage Capital to Average Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 5.00% | 5.00% |
Stockholders_Equity_and_Regula3
Stockholders' Equity and Regulatory Capital Reconciliation of stockholders' equity to federal regulatory capital (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Regulatory Capital Requirements [Abstract] | ' | ' | ' |
Stockholders’ equity of the Corporation | $109,275 | $99,539 | $64,214 |
Unrealized and accumulated losses (gains) on specific items | 342 | -2,183 | ' |
Trust preferred securities | 10,000 | 10,000 | ' |
Tier 1 capital | 119,617 | 107,356 | ' |
Allowable general valuation allowances and subordinated debt | 25,735 | 24,686 | ' |
Risk-based capital | $145,352 | $132,042 | ' |
Stockholders_Equity_and_Regula4
Stockholders' Equity and Regulatory Capital (Narrative Disclosures) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jul. 15, 2008 | Jun. 05, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | |
right | right | |||
Regulatory Capital Requirements [Abstract] | ' | ' | ' | ' |
Dividend declared of one common share purchase right for each outstanding share of common stock | ' | 1 | ' | ' |
Dividend paid of one common share purchase right for each outstanding share of common stock | 1 | ' | ' | ' |
Common stock, par value | ' | ' | $0.01 | $0.01 |
Class of right, exercise price of rights | ' | ' | 85 | ' |
Class of right, exercise price for each one-half of a common share | ' | ' | 42.5 | ' |
Rights will be exercisable only if a person or group acquires fifteen percent or more of the corporation’s common stock or announces a tender offer for such stock | ' | ' | 15.00% | ' |
Value of additional shares acquired under the shareholder rights plan, common stock, market value multiplier of market value of common stock | ' | ' | 2 | ' |
Description of possible effects of noncompliance or less than adequately capitalized | ' | ' | 'Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Banks’ assets, liabilities and certain off-balance-sheet items as calculated under regulatory practices. | ' |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $3,760 | $3,609 | $3,133 | $3,244 | $2,529 | $2,622 | $1,565 | $2,210 | $13,746 | $8,926 |
Less: earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 331 | 329 |
Basic earnings allocated to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 13,415 | 8,597 |
Weighted-average common shares outstanding, excluding participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 3,832,296 | 2,608,961 |
Basic earnings per common share | $0.95 | $0.92 | $0.80 | $0.83 | $0.86 | $0.99 | $0.60 | $0.84 | $3.50 | $3.30 |
Diluted earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings allocated to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 13,415 | 8,597 |
Reallocation of undistributed earnings | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 0 |
Diluted earnings allocated to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | $13,417 | $8,597 |
Weighted-average common shares outstanding, excluding participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 3,832,296 | 2,608,961 |
Dilutive effect of share-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 15,314 | 1,911 |
Weighted-average diluted common shares outstanding, excluding participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 3,847,610 | 2,610,872 |
Diluted earnings per common share | $0.95 | $0.91 | $0.80 | $0.83 | $0.86 | $0.99 | $0.60 | $0.84 | $3.49 | $3.29 |
Earnings_Per_Common_Share_Narr
Earnings Per Common Share (Narrative Disclosures) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | ' | ' |
Issuance of common stock, shares | ' | 1,265,000 |
Issuance of common stock, price per share | ' | $23 |
Average anti-dilutive employee share based awards | 77 | 115,236 |
ShareBased_Compensation_Stock_
Share-Based Compensation (Stock Option Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Options | ' | ' |
Outstanding, beginning | 124,034 | 125,034 |
Granted | 0 | 0 |
Exercised | -69,684 | -1,000 |
Expired | -3,350 | 0 |
Forfeited | 0 | 0 |
Outstanding, ending balance | 51,000 | 124,034 |
Exercisable | 51,000 | 124,034 |
Weighted Average Exercise Price | ' | ' |
Outstanding, beginning | $22.43 | $22.43 |
Granted | $0 | $0 |
Exercised | $21.13 | $22 |
Expired | $22 | $0 |
Forfeited | $0 | $0 |
Outstanding, ending | $24.24 | $22.43 |
Exercisable | $24.24 | $22.43 |
ShareBased_Compensation_Stock_1
Share-Based Compensation Stock option Exercise price ranges (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Options outstanding, shares | 51,000 | 124,034 | 125,034 |
Options outstanding, weighted average remaining contractual life (Years) | '10 months 17 days | ' | ' |
Options outstanding, weighted average exercise price | $24.24 | $22.43 | $22.43 |
Exercisable shares | 51,000 | 124,034 | ' |
Exercisable, weighted average exercise price | $24.24 | $22.43 | ' |
Range of exercise price $24.00 through $24.99 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of exercise prices, lower range limit | $24 | ' | ' |
Range of exercise prices, upper range limit | $24.99 | ' | ' |
Options outstanding, shares | 39,000 | ' | ' |
Options outstanding, weighted average remaining contractual life (Years) | '9 months 18 days | ' | ' |
Options outstanding, weighted average exercise price | $24 | ' | ' |
Exercisable shares | 39,000 | ' | ' |
Exercisable, weighted average exercise price | $24 | ' | ' |
Range of exercise price $25.00 through $25.99 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of exercise prices, lower range limit | $25 | ' | ' |
Range of exercise prices, upper range limit | $25.99 | ' | ' |
Options outstanding, shares | 12,000 | ' | ' |
Options outstanding, weighted average remaining contractual life (Years) | '1 year 1 month 17 days | ' | ' |
Options outstanding, weighted average exercise price | $25 | ' | ' |
Exercisable shares | 12,000 | ' | ' |
Exercisable, weighted average exercise price | $25 | ' | ' |
ShareBased_Compensation_Restri
Share-Based Compensation (Restricted Share Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Restricted Shares | ' | ' |
Nonvested balance, beginning | 94,506 | 95,868 |
Granted | 25,030 | 37,123 |
Vested | -34,827 | -35,905 |
Forfeited | 0 | -2,580 |
Nonvested balance, ending | 84,709 | 94,506 |
Weighted Average Grant-Date Fair Value | ' | ' |
Nonvested balance, beginning | $18.19 | $15.15 |
Granted | $33 | $23.03 |
Vested | $16.88 | $15.06 |
Forfeited | $0 | $18.32 |
Nonvested balance, ending | $23.10 | $18.19 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative Disclosures) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Number of shares available for grant | 198,949 | ' |
Stock options graded vesting minimum period | '4 years | ' |
Stock options graded vesting maximum period | '8 years | ' |
Stock options contractual term | '10 years | ' |
Stock-based compensation related to stock options recognized in consolidated financial statements | $0 | $0 |
Deferred compensation expense yet to be recognized | 1,700,000 | ' |
Period of time that deferred compensation expense will be recognized | '2 years 8 months 23 days | ' |
Share-based compensation | $660,000 | $548,000 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefit Plan [Abstract] | ' | ' |
Defined contribution maximum annual matching contribution per employee, percent | 3.00% | ' |
Defined contribution maximum annual discretionary contribution per employee, percent | 6.00% | ' |
Defined contribution plan, employer matching contribution, percent | 3.00% | ' |
Defined contribution plan employer matching contribution | $348 | $321 |
Defined contribution plan employer discretionary contribution percent | 4.60% | 5.00% |
Defined contribution plan, employer discretionary contribution amount | 533 | 528 |
Deferred compensation plan compensation expense | 81 | 58 |
Present value of future payments under the remaining deferred compensation plan liability | $647 | $566 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Bank owned life insurance [Line Items] | ' | ' |
Cash surrender value of bank-owned life insurance | $23,142,000 | $22,272,000 |
Bank owned life insurance death benefits | 57,400,000 | ' |
Insured executive officers with deferred compensation plans | ' | ' |
Bank owned life insurance [Line Items] | ' | ' |
Cash surrender value of bank-owned life insurance | 2,000,000 | 1,900,000 |
Bank owned life insurance death benefits | 5,700,000 | 5,700,000 |
Other insured individuals | ' | ' |
Bank owned life insurance [Line Items] | ' | ' |
Cash surrender value of bank-owned life insurance | $21,100,000 | $20,400,000 |
Leases_Details
Leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, By Year [Abstract] | ' |
2014 | $706 |
2015 | 678 |
2016 | 645 |
2017 | 613 |
2018 | 558 |
Thereafter | 4,885 |
Total | $8,085 |
Leases_Narrative_Details
Leases (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Rent expense | $1,200 | $1,200 |
Leased Vehicles And Other Office Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Rent expense | $29 | $27 |
Other_Operating_Expenses_Detai
Other Operating Expenses (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other Operating Expenses [Abstract] | ' | ' |
Endowment to First Business Charitable Foundation | $1,300 | $0 |
General and administrative expenses | 938 | 912 |
Travel and other employee expenses | 877 | 903 |
Computer software expenses | 677 | 446 |
Partnership loss (income) | 437 | -678 |
Foreclosed properties expenses | 185 | 589 |
Other expenses | 240 | 562 |
Total other operating expenses | $4,654 | $2,734 |
Income_Taxes_Schedule_of_Compo
Income Taxes Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current federal tax expense | ' | ' | ' | ' | ' | ' | ' | ' | $3,605 | $5,473 |
Current state tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,356 | 1,183 |
Current tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 4,961 | 6,656 |
Deferred federal tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 2,257 | -1,756 |
Deferred state tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 171 | -150 |
Deferred tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 2,428 | -1,906 |
Total income tax expense | $2,061 | $1,958 | $1,690 | $1,680 | $1,308 | $1,441 | $771 | $1,230 | $7,389 | $4,750 |
Income_Taxes_Schedule_Of_Defer
Income Taxes Schedule Of Deferred Tax Assets And Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Deferred tax assets, allowance for loan and lease losses | $5,372 | $5,890 |
Deferred tax assets, deferred compensation | 1,144 | 1,139 |
Deferred tax assets, state net operating loss carryforwards | 730 | 712 |
Deferred tax assets, write-down of foreclosed properties | 0 | 188 |
Deferred tax assets, non-accrual loan interest | 733 | 863 |
Deferred tax assets, capital loss carryforwards | 35 | 35 |
Deferred tax assets, unrealized loss on securities | 215 | 0 |
Deferred tax assets, other | 486 | 505 |
Total deferred tax assets before valuation allowance | 8,715 | 9,332 |
Deferred tax assets, valuation allowance | -67 | -8 |
Total deferred tax assets | 8,648 | 9,324 |
Deferred tax liabilities, leasing and fixed asset activities | 4,803 | 3,266 |
Deferred tax liabilities, unrealized gain on securities | 0 | 1,352 |
Deferred tax liabilities, other | 123 | 123 |
Total deferred tax liabilities | 4,926 | 4,741 |
Net deferred tax asset | $3,722 | $4,583 |
Income_Taxes_Reconciliation_of
Income Taxes Reconciliation of the Change in Net Deferred Tax Assets to Deferred Tax Expense (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Change in net deferred tax assets | ($861) | $2,101 |
Deferred taxes allocated to other comprehensive income | -1,567 | -195 |
Deferred income tax (expense) benefit | ($2,428) | $1,906 |
Income_Taxes_Schedule_of_Effec
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income tax expense | $5,821 | $5,567 | $4,823 | $4,924 | $3,837 | $4,063 | $2,336 | $3,440 | $21,135 | $13,676 |
Income tax reconciliation, tax expense at statutory federal rate of 34% applied to income before income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 7,275 | 4,650 |
Income tax reconciliation, state income tax, net of federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 906 | 647 |
Income tax reconciliation, tax exempt income tax-exempt security and loan income, net of TEFRA adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -682 | -431 |
Income tax reconciliation, change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 59 | -3 |
Income tax reconciliation, tax exempt income bank-owned life insurance | ' | ' | ' | ' | ' | ' | ' | ' | -291 | -239 |
Income tax reconciliation, other adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 122 | 126 |
Total income tax expense | $2,061 | $1,958 | $1,690 | $1,680 | $1,308 | $1,441 | $771 | $1,230 | $7,389 | $4,750 |
Effective tax rate | ' | ' | ' | ' | ' | ' | ' | ' | 34.96% | 34.73% |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | ' | ' |
Unrecognized tax benefits at end of year | $16,000 | $16,000 |
Unrecognized tax benefits, additions for tax positions of prior years | 0 | ' |
Unrecognized tax benefits, reductions for tax positions of prior years | 0 | ' |
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities | 0 | ' |
Unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months | 0 | ' |
Minimum | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards expire | 1-Jan-23 | ' |
Maximum | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards expire | 1-Jan-32 | ' |
State and local jurisdiction | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
State net operating loss carryforwards | 14,100,000 | 13,600,000 |
Operating loss carryforwards, valuation allowance | -67,000 | -8,000 |
Other tax carryforward, valuation allowance | $0 | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives not designated as hedging instruments, fair value | ' | ' |
Interest rate swaps - assets | 946 | 3,069 |
Interest rate swaps - liabilities | 946 | 3,069 |
Other assets | ' | ' |
Derivatives not designated as hedging instruments, fair value | ' | ' |
Description of location of interest rate derivative instruments not designated as hedging instruments on balance sheet | 'Other assets | 'Other assets |
Other liabilities | ' | ' |
Derivatives not designated as hedging instruments, fair value | ' | ' |
Description of location of interest rate derivative instruments not designated as hedging instruments on balance sheet | 'Other liabilities | 'Other liabilities |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Narrative Disclosures) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Derivatives | ' | ' |
Interest rate swaps - assets | $946,000 | $3,069,000 |
Interest rate swaps - liabilities | 946,000 | 3,069,000 |
Derivative asset, fair value, amount offset against collateral | 0 | ' |
Interest rate derivatives, line item on income statement for gain (loss) | 'other non-interest income | ' |
To commercial borrowers, corporation receives fixed rates and pays floating rates | ' | ' |
Derivatives | ' | ' |
Interest rate swaps - assets | 528,000 | ' |
Interest rate swaps - liabilities | 918,000 | ' |
To commercial borrowers, corporation receives fixed rates and pays floating rates | Minimum | ' | ' |
Derivatives | ' | ' |
Derivative, maturity date | 15-Jan-14 | ' |
To commercial borrowers, corporation receives fixed rates and pays floating rates | Maximum | ' | ' |
Derivatives | ' | ' |
Derivative, maturity date | 15-Feb-23 | ' |
To dealer countparties, corporation pays fixed rates and receives floating rates | ' | ' |
Derivatives | ' | ' |
Interest rate swaps - assets | 918,000 | ' |
Interest rate swaps - liabilities | 528,000 | ' |
To dealer countparties, corporation pays fixed rates and receives floating rates | Minimum | ' | ' |
Derivatives | ' | ' |
Derivative, maturity date | 15-Jan-14 | ' |
To dealer countparties, corporation pays fixed rates and receives floating rates | Maximum | ' | ' |
Derivatives | ' | ' |
Derivative, maturity date | 15-Feb-23 | ' |
Not designated as hedging instrument | To commercial borrowers, corporation receives fixed rates and pays floating rates | ' | ' |
Derivatives | ' | ' |
Derivative, notional amount | 31,400,000 | ' |
Not designated as hedging instrument | To dealer countparties, corporation pays fixed rates and receives floating rates | ' | ' |
Derivatives | ' | ' |
Derivative, notional amount | 31,400,000 | ' |
First Business Bank | To dealer countparties, corporation pays fixed rates and receives floating rates | ' | ' |
Derivatives | ' | ' |
Interest rate derivative instruments not designated as hedging instruments at fair value, net | 418,000 | ' |
First Business Bank – Milwaukee | To dealer countparties, corporation pays fixed rates and receives floating rates | ' | ' |
Derivatives | ' | ' |
Interest rate derivative instruments not designated as hedging instruments at fair value, net | ($28,000) | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments to extend credit, primarily commercial loans | ' | ' |
Lending Related Commitments by Type [Line Items] | ' | ' |
Lending related commitments | $282,581 | $257,150 |
Standby letters of credit | ' | ' |
Lending Related Commitments by Type [Line Items] | ' | ' |
Lending related commitments | $19,602 | $17,840 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Accrued credit losses for financial instruments with off-balance-sheet risk | $0 | $0 |
Fair_Value_Measured_on_a_Recur
Fair Value (Measured on a Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Interest rate swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Liabilities measured on a recurring basis, fair value | $946 | $3,069 |
Interest rate swaps | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Liabilities measured on a recurring basis, fair value | 0 | 0 |
Interest rate swaps | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Liabilities measured on a recurring basis, fair value | 946 | 3,069 |
Interest rate swaps | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Liabilities measured on a recurring basis, fair value | 0 | 0 |
Municipal obligations | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 15,489 | 12,033 |
Municipal obligations | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
Municipal obligations | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 15,489 | 12,033 |
Municipal obligations | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
Asset-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 1,494 | ' |
Asset-backed securities | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | ' |
Asset-backed securities | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 1,494 | ' |
Asset-backed securities | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | ' |
U.S. Government agency obligations - government-sponsored enterprises | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 16,244 | 19,721 |
U.S. Government agency obligations - government-sponsored enterprises | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
U.S. Government agency obligations - government-sponsored enterprises | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 16,244 | 19,721 |
U.S. Government agency obligations - government-sponsored enterprises | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
Collateralized mortgage obligations - government issued | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 111,969 | 151,645 |
Collateralized mortgage obligations - government issued | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
Collateralized mortgage obligations - government issued | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 111,969 | 151,645 |
Collateralized mortgage obligations - government issued | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
Collateralized mortgage obligations - government-sponsored enterprises | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 34,922 | 17,197 |
Collateralized mortgage obligations - government-sponsored enterprises | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
Collateralized mortgage obligations - government-sponsored enterprises | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 34,922 | 17,197 |
Collateralized mortgage obligations - government-sponsored enterprises | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
Interest rate swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 946 | 3,069 |
Interest rate swaps | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 0 | 0 |
Interest rate swaps | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 946 | 3,069 |
Interest rate swaps | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | $0 | $0 |
Fair_Value_Measured_on_a_NonRe
Fair Value (Measured on a Non-Recurring Basis) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Total gains (losses) on impaired loans | $0 | $0 |
Total gains (losses) on foreclosed properties | -59 | -600 |
Impaired loans | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 13,719 | 8,544 |
Impaired loans | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 0 | 0 |
Impaired loans | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 13,666 | 6,770 |
Impaired loans | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 53 | 1,774 |
Foreclosed properties | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 333 | 1,574 |
Foreclosed properties | Fair Value Measurements - Level 1 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 0 | 529 |
Foreclosed properties | Fair Value Measurements - Level 2 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 333 | 982 |
Foreclosed properties | Fair Value Measurements - Level 3 Inputs | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | $0 | $63 |
Fair_Value_Foreclosed_Properti
Fair Value (Foreclosed Properties) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | ' | ' |
Foreclosed properties at the beginning of the period | $1,574 | $2,236 |
Loans transferred to foreclosed properties, at lower of cost or fair value | 1,381 | 1,511 |
Payments to priority lien holders of foreclosed properties | 0 | 367 |
Proceeds from sale of foreclosed properties | -2,739 | -1,955 |
Net gain on sale of foreclosed properties | 176 | 15 |
Impairment valuation | -59 | -600 |
Foreclosed properties at the end of the period | $333 | $1,574 |
Fair_Value_Fair_Value_by_Balan
Fair Value (Fair Value by Balance Sheet Groupings) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Financial assets: | ' | ' | ' |
Cash and cash equivalents, carrying amount | $81,286 | $85,586 | $130,093 |
Securities available-for-sale, carrying amount | 180,118 | 200,596 | ' |
Loans and leases receivable, net amount, carrying amount | 967,050 | 896,560 | ' |
Federal Home Loan Bank stock, carrying amount | 1,255 | 1,144 | ' |
Cash surrender value of life insurance, carrying amount | 23,142 | 22,272 | ' |
Accrued interest receivable, carrying amount | 3,231 | 3,217 | ' |
Interest rate swaps - assets | 946 | 3,069 | ' |
Cash and cash equivalents, fair value | 81,295 | 85,595 | ' |
Securities available-for-sale, fair value | 180,118 | 200,596 | ' |
Loans and lease receivables, net, fair value | 963,937 | 905,501 | ' |
Federal Home Loan Bank stock, fair value | 1,255 | 1,144 | ' |
Cash surrender value of life insurance, fair value | 23,142 | 22,272 | ' |
Accrued interest receivable, fair value | 3,231 | 3,217 | ' |
Interest rate swaps, fair value | 946 | 3,069 | ' |
Financial liabilities: | ' | ' | ' |
Deposits, carrying amount | 1,129,855 | 1,092,254 | ' |
Federal Home Loan Bank and other borrowings, carrying amount | 11,936 | 12,405 | ' |
Junior subordinated notes, carrying amount | 10,315 | 10,315 | ' |
Interest rate swaps - liabilities | 946 | 3,069 | ' |
Accrued interest payable, carrying amount | 1,052 | 1,711 | ' |
Standby letters of credit, carrying amount | 219 | 197 | ' |
Commitments to extend credit, carrying amount | 0 | 0 | ' |
Deposits, fair value | 1,131,002 | 1,102,316 | ' |
Federal Home Loan Bank and other borrowings, fair value | 11,979 | 13,170 | ' |
Junior subordinated notes, fair value | 7,084 | 7,046 | ' |
Interest rate swaps, fair value | 946 | 3,069 | ' |
Accrued interest payable, fair value | 1,052 | 1,711 | ' |
Standby letters of credit, fair value | 219 | 197 | ' |
Fair Value Measurements - Level 1 Inputs | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents, fair value | 66,266 | 74,940 | ' |
Securities available-for-sale, fair value | 0 | 0 | ' |
Loans and lease receivables, net, fair value | 0 | 0 | ' |
Federal Home Loan Bank stock, fair value | 0 | 0 | ' |
Cash surrender value of life insurance, fair value | 23,142 | 22,272 | ' |
Accrued interest receivable, fair value | 3,231 | 3,217 | ' |
Interest rate swaps, fair value | 0 | 0 | ' |
Financial liabilities: | ' | ' | ' |
Deposits, fair value | 684,344 | 649,346 | ' |
Federal Home Loan Bank and other borrowings, fair value | 0 | 0 | ' |
Junior subordinated notes, fair value | 0 | 0 | ' |
Interest rate swaps, fair value | 0 | 0 | ' |
Accrued interest payable, fair value | 1,052 | 1,711 | ' |
Standby letters of credit, fair value | 0 | 0 | ' |
Fair Value Measurements - Level 2 Inputs | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents, fair value | 4,029 | 5,155 | ' |
Securities available-for-sale, fair value | 180,118 | 200,596 | ' |
Loans and lease receivables, net, fair value | 13,666 | 6,770 | ' |
Federal Home Loan Bank stock, fair value | 0 | 0 | ' |
Cash surrender value of life insurance, fair value | 0 | 0 | ' |
Accrued interest receivable, fair value | 0 | 0 | ' |
Interest rate swaps, fair value | 946 | 3,069 | ' |
Financial liabilities: | ' | ' | ' |
Deposits, fair value | 446,658 | 452,970 | ' |
Federal Home Loan Bank and other borrowings, fair value | 11,979 | 13,170 | ' |
Junior subordinated notes, fair value | 0 | 0 | ' |
Interest rate swaps, fair value | 946 | 3,069 | ' |
Accrued interest payable, fair value | 0 | 0 | ' |
Standby letters of credit, fair value | 0 | 0 | ' |
Fair Value Measurements - Level 3 Inputs | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents, fair value | 11,000 | 5,500 | ' |
Securities available-for-sale, fair value | 0 | 0 | ' |
Loans and lease receivables, net, fair value | 950,271 | 898,731 | ' |
Federal Home Loan Bank stock, fair value | 1,255 | 1,144 | ' |
Cash surrender value of life insurance, fair value | 0 | 0 | ' |
Accrued interest receivable, fair value | 0 | 0 | ' |
Interest rate swaps, fair value | 0 | 0 | ' |
Financial liabilities: | ' | ' | ' |
Deposits, fair value | 0 | 0 | ' |
Federal Home Loan Bank and other borrowings, fair value | 0 | 0 | ' |
Junior subordinated notes, fair value | 7,084 | 7,046 | ' |
Interest rate swaps, fair value | 0 | 0 | ' |
Accrued interest payable, fair value | 0 | 0 | ' |
Standby letters of credit, fair value | $219 | $197 | ' |
Fair_Value_Narrative_Disclosur
Fair Value (Narrative Disclosures) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Fair value, assets, level 1 to level 2 transfers | $0 | $0 |
Fair value, assets, level 2 to level 1 transfers | 0 | 0 |
Fair value, assets, transfers into level 3 | 0 | 0 |
Fair value, assets, transfers out of level 3 | 0 | 0 |
Fair value, liabilities, level 1 to level 2 transfers | 0 | 0 |
Fair value, liabilities, level 2 to level 1 transfers | 0 | 0 |
Fair value, liabilities, transfers into level 3 | 0 | 0 |
Fair value, liabilities, transfers out of level 3 | 0 | 0 |
Transfer to foreclosed properties | 1,381,000 | 1,511,000 |
Net losses due to impairment valuation | 59,000 | 600,000 |
Commercial paper | 11,000,000 | 5,500,000 |
Certificates of deposit, at carrying value | 4,000,000 | 5,100,000 |
FHLB stock par value equals carrying value | 100 | ' |
Minimum | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Quantification of unobservable inputs for level 3 values for impaired loans | 19.00% | ' |
Maximum | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Quantification of unobservable inputs for level 3 values for impaired loans | 100.00% | ' |
Weighted average | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Quantification of unobservable inputs for level 3 values for impaired loans | 64.00% | ' |
Impaired loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Assets measured on a non-recurring basis, fair value | 13,719,000 | 8,544,000 |
Foreclosed properties | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Assets measured on a non-recurring basis, fair value | 333,000 | 1,574,000 |
Fair Value Measurements - Level 3 Inputs | Impaired loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Assets measured on a non-recurring basis, fair value | 53,000 | 1,774,000 |
Fair Value Measurements - Level 3 Inputs | Foreclosed properties | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Assets measured on a non-recurring basis, fair value | $0 | $63,000 |
Assets, fair value disclosure, nonrecurring, number of assets | 0 | ' |
Condensed_Parent_Only_Financia2
Condensed Parent Only Financial Information Condensed Balance Sheet (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | ' |
Cash and cash equivalents | $81,286 | $85,586 | $130,093 |
Leasehold improvements and equipment, net | 1,155 | 968 | ' |
Other assets | 14,316 | 17,408 | ' |
Total assets | 1,268,655 | 1,226,108 | ' |
Liabilities and Stockholders’ Equity | ' | ' | ' |
Borrowed funds | 22,251 | 22,720 | ' |
Other liabilities | 7,274 | 11,595 | ' |
Total liabilities | 1,159,380 | 1,126,569 | ' |
Stockholders’ equity | 109,275 | 99,539 | 64,214 |
Total liabilities and stockholders’ equity | 1,268,655 | 1,226,108 | ' |
Parent company | ' | ' | ' |
Assets | ' | ' | ' |
Cash and cash equivalents | 4,855 | 1,032 | 718 |
Investments in subsidiaries, at equity | 127,450 | 121,122 | ' |
Leasehold improvements and equipment, net | 789 | 475 | ' |
Other assets | 1,921 | 2,199 | ' |
Total assets | 135,015 | 124,828 | ' |
Liabilities and Stockholders’ Equity | ' | ' | ' |
Borrowed funds | 22,251 | 22,251 | ' |
Other liabilities | 3,489 | 3,038 | ' |
Total liabilities | 25,740 | 25,289 | ' |
Stockholders’ equity | 109,275 | 99,539 | ' |
Total liabilities and stockholders’ equity | $135,015 | $124,828 | ' |
Condensed_Parent_Only_Financia3
Condensed Parent Only Financial Information Condensed Income Statement (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $13,763 | $13,586 | $13,142 | $13,319 | $13,158 | $14,032 | $13,943 | $13,633 | $53,810 | $54,766 |
Interest expense | 2,779 | 2,887 | 2,949 | 3,090 | 3,727 | 4,117 | 4,334 | 4,707 | 11,705 | 16,885 |
Net interest income | 10,984 | 10,699 | 10,193 | 10,229 | 9,431 | 9,915 | 9,609 | 8,926 | 42,105 | 37,881 |
Total non-interest income | 2,191 | 2,124 | 2,174 | 1,953 | 2,696 | 2,249 | 1,904 | 1,850 | 8,442 | 8,699 |
Non-interest expense | 8,556 | 7,147 | 7,490 | 7,178 | 7,446 | 7,251 | 7,132 | 6,832 | 30,371 | 28,661 |
Loss before income tax benefit and equity in undistributed net income of consolidated subsidiaries | 5,821 | 5,567 | 4,823 | 4,924 | 3,837 | 4,063 | 2,336 | 3,440 | 21,135 | 13,676 |
Income tax benefit | 2,061 | 1,958 | 1,690 | 1,680 | 1,308 | 1,441 | 771 | 1,230 | 7,389 | 4,750 |
Net income | 3,760 | 3,609 | 3,133 | 3,244 | 2,529 | 2,622 | 1,565 | 2,210 | 13,746 | 8,926 |
Parent company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,952 | 3,825 |
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | -1,952 | -3,825 |
Consulting and rental income from consolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 9,738 | 8,904 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 34 | 34 |
Total non-interest income | ' | ' | ' | ' | ' | ' | ' | ' | 9,772 | 8,938 |
Non-interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 10,558 | 9,615 |
Loss before income tax benefit and equity in undistributed net income of consolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -2,738 | -4,502 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -1,050 | -1,722 |
Loss before equity in undistributed net income of consolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -1,688 | -2,780 |
Equity in undistributed net income of consolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 15,434 | 11,706 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $13,746 | $8,926 |
Condensed_Parent_Only_Financia4
Condensed Parent Only Financial Information Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Net Cash Provided by (Used in) Operating Activities | ' | ' |
Net income | $13,746 | $8,926 |
Equity in undistributed earnings of consolidated subsidiaries | 437 | -678 |
Share-based compensation | 660 | 548 |
Excess tax benefit from share-based compensation | -365 | -107 |
Increase (decrease) in other liabilities | -3,681 | 712 |
Other, net | 2,713 | 646 |
Net cash provided by (used in) operating activities | 15,902 | 15,998 |
Net Cash Provided by (Used in) Investing Activities | ' | ' |
Net cash (used in) provided by investing activities | -54,916 | -99,809 |
Net Cash Provided by (Used in) Financing Activities | ' | ' |
Net decrease in short-term borrowed funds | 0 | -800 |
Proceeds from issuance of long-term debt | 0 | 6,215 |
Repayment of long-term debt | 0 | -33,289 |
Proceeds from issuance of common stock | 0 | 27,074 |
Proceeds from exercise of stock options | 1,474 | 22 |
Purchase of treasury stock | -1,782 | -216 |
Excess tax benefit from share-based compensation | 365 | 107 |
Dividends paid | -2,475 | -738 |
Net cash provided by (used in) financing activities | 34,714 | 39,304 |
Net (decrease) increase in cash and cash equivalents | -4,300 | -44,507 |
Cash and cash equivalents at the beginning of the period | 85,586 | 130,093 |
Cash and cash equivalents at the end of the period | 81,286 | 85,586 |
Parent company | ' | ' |
Net Cash Provided by (Used in) Operating Activities | ' | ' |
Net income | 13,746 | 8,926 |
Equity in undistributed earnings of consolidated subsidiaries | -15,434 | -11,706 |
Share-based compensation | 311 | 254 |
Excess tax benefit from share-based compensation | -145 | -47 |
Increase (decrease) in other liabilities | 867 | -1,131 |
Other, net | -34 | -297 |
Net cash provided by (used in) operating activities | -689 | -4,001 |
Net Cash Provided by (Used in) Investing Activities | ' | ' |
Dividends received from subsidiaries | 8,000 | 6,000 |
Capital contributions to subsidiaries | -850 | 0 |
Net cash (used in) provided by investing activities | 7,150 | 6,000 |
Net Cash Provided by (Used in) Financing Activities | ' | ' |
Net decrease in short-term borrowed funds | 0 | -800 |
Proceeds from issuance of long-term debt | 0 | 6,215 |
Repayment of long-term debt | 0 | -33,289 |
Proceeds from issuance of common stock | 0 | 27,074 |
Proceeds from exercise of stock options | 1,474 | 22 |
Purchase of treasury stock | -1,782 | -216 |
Excess tax benefit from share-based compensation | 145 | 47 |
Dividends paid | -2,475 | -738 |
Net cash provided by (used in) financing activities | -2,638 | -1,685 |
Net (decrease) increase in cash and cash equivalents | 3,823 | 314 |
Cash and cash equivalents at the beginning of the period | 1,032 | 718 |
Cash and cash equivalents at the end of the period | $4,855 | $1,032 |
Condensed_Quarterly_Earnings_D
Condensed Quarterly Earnings (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $13,763 | $13,586 | $13,142 | $13,319 | $13,158 | $14,032 | $13,943 | $13,633 | $53,810 | $54,766 |
Interest expense | -2,779 | -2,887 | -2,949 | -3,090 | -3,727 | -4,117 | -4,334 | -4,707 | -11,705 | -16,885 |
Net interest income | 10,984 | 10,699 | 10,193 | 10,229 | 9,431 | 9,915 | 9,609 | 8,926 | 42,105 | 37,881 |
Provision for loan losses | 1,202 | -109 | -54 | -80 | -844 | -850 | -2,045 | -504 | 959 | -4,243 |
Non-interest income | 2,191 | 2,124 | 2,174 | 1,953 | 2,696 | 2,249 | 1,904 | 1,850 | 8,442 | 8,699 |
Non-interest expense | -8,556 | -7,147 | -7,490 | -7,178 | -7,446 | -7,251 | -7,132 | -6,832 | -30,371 | -28,661 |
Income before income tax expense | 5,821 | 5,567 | 4,823 | 4,924 | 3,837 | 4,063 | 2,336 | 3,440 | 21,135 | 13,676 |
Income taxes | -2,061 | -1,958 | -1,690 | -1,680 | -1,308 | -1,441 | -771 | -1,230 | -7,389 | -4,750 |
Net income | $3,760 | $3,609 | $3,133 | $3,244 | $2,529 | $2,622 | $1,565 | $2,210 | $13,746 | $8,926 |
Basic earnings per common share | $0.95 | $0.92 | $0.80 | $0.83 | $0.86 | $0.99 | $0.60 | $0.84 | $3.50 | $3.30 |
Diluted earnings per common share | $0.95 | $0.91 | $0.80 | $0.83 | $0.86 | $0.99 | $0.60 | $0.84 | $3.49 | $3.29 |
Dividends declared per share | $0.14 | $0.14 | $0.14 | $0.14 | $0.07 | $0.07 | $0.07 | $0.07 | $0.56 | $0.28 |