Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 23, 2014 | |
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-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 3,973,179 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $13,905 | $13,219 |
Short-term investments | 160,593 | 68,067 |
Cash and cash equivalents | 174,498 | 81,286 |
Securities available-for-sale, at fair value | 142,427 | 180,118 |
Securities held-to-maturity, at amortized cost | 42,522 | 0 |
Loans and leases receivable, net of allowance for loan and lease losses of $13,930 and $13,901, respectively | 1,027,886 | 967,050 |
Leasehold improvements and equipment, net | 1,198 | 1,155 |
Foreclosed properties | 106 | 333 |
Cash surrender value of bank-owned life insurance | 23,772 | 23,142 |
Investment in Federal Home Loan Bank stock, at cost | 1,349 | 1,255 |
Accrued interest receivable and other assets | 13,809 | 14,316 |
Total assets | 1,427,567 | 1,268,655 |
Liabilities and Stockholders’ Equity | ' | ' |
Deposits | 1,269,200 | 1,129,855 |
Federal Home Loan Bank and other borrowings | 22,936 | 11,936 |
Junior subordinated notes | 10,315 | 10,315 |
Accrued interest payable and other liabilities | 6,924 | 7,274 |
Total liabilities | 1,309,375 | 1,159,380 |
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, 4,131,470 and 4,106,084 shares issued, 3,959,115 and 3,943,997 shares outstanding at September 30, 2014 and December 31, 2013, respectively | 41 | 41 |
Additional paid-in capital | 56,894 | 56,002 |
Retained earnings | 65,053 | 57,143 |
Accumulated other comprehensive income (loss) | 233 | -342 |
Treasury stock, 172,355 and 162,087 shares at September 30, 2014 and December 31, 2013, respectively, at cost | -4,029 | -3,569 |
Total stockholders’ equity | 118,192 | 109,275 |
Total liabilities and stockholders’ equity | $1,427,567 | $1,268,655 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets - Parenthetical [Abstract] | ' | ' |
Allowance for loan and lease losses | $13,930 | $13,901 |
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 | 4,131,470 | 4,106,084 |
Common stock, shares outstanding | 3,959,115 | 3,943,997 |
Treasury stock, shares | 172,355 | 162,087 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest income: | ' | ' | ' | ' |
Loans and leases | $12,968 | $12,669 | $38,094 | $37,405 |
Securities income | 821 | 841 | 2,543 | 2,460 |
Short-term investments | 82 | 76 | 201 | 182 |
Total interest income | 13,871 | 13,586 | 40,838 | 40,047 |
Interest expense: | ' | ' | ' | ' |
Deposits | 2,405 | 2,398 | 6,911 | 7,450 |
Notes payable and other borrowings | 251 | 209 | 561 | 645 |
Junior subordinated notes | 280 | 280 | 831 | 831 |
Total interest expense | 2,936 | 2,887 | 8,303 | 8,926 |
Net interest income | 10,935 | 10,699 | 32,535 | 31,121 |
Provision for loan and lease losses | -89 | 109 | 0 | 243 |
Net interest income after provision for loan and lease losses | 11,024 | 10,590 | 32,535 | 30,878 |
Non-interest income: | ' | ' | ' | ' |
Trust and investment services fee income | 1,137 | 976 | 3,315 | 2,773 |
Service charges on deposits | 620 | 549 | 1,787 | 1,576 |
Loan fees | 386 | 296 | 1,156 | 986 |
Increase in cash surrender value of bank-owned life insurance | 215 | 215 | 630 | 634 |
Other | 101 | 88 | 250 | 282 |
Total non-interest income | 2,459 | 2,124 | 7,138 | 6,251 |
Non-interest expense: | ' | ' | ' | ' |
Compensation | 5,193 | 4,586 | 14,991 | 13,819 |
Occupancy | 324 | 314 | 963 | 954 |
Professional fees | 674 | 500 | 2,201 | 1,506 |
Data processing | 389 | 349 | 1,227 | 1,153 |
Marketing | 409 | 344 | 1,120 | 981 |
Equipment | 145 | 127 | 400 | 401 |
FDIC insurance | 179 | 169 | 542 | 567 |
Collateral liquidation costs | 32 | 108 | 276 | 167 |
Net (gain) loss on foreclosed properties | -9 | -48 | -5 | 1 |
Other | 711 | 698 | 1,933 | 2,266 |
Total non-interest expense | 8,047 | 7,147 | 23,648 | 21,815 |
Income before income tax expense | 5,436 | 5,567 | 16,025 | 15,314 |
Income tax expense | 1,883 | 1,958 | 5,630 | 5,328 |
Net income | $3,553 | $3,609 | $10,395 | $9,986 |
Earnings per common share: | ' | ' | ' | ' |
Basic | $0.90 | $0.92 | $2.63 | $2.55 |
Diluted | $0.89 | $0.91 | $2.62 | $2.54 |
Dividends declared per share | $0.21 | $0.14 | $0.63 | $0.42 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $3,553 | $3,609 | $10,395 | $9,986 |
Other comprehensive (loss) income, before tax | ' | ' | ' | ' |
Unrealized securities (losses) gains arising during the period | -431 | -477 | 1,711 | -3,488 |
Unrealized losses transferred to held-to-maturity | 0 | 0 | -874 | 0 |
Amortization of net unrealized losses transferred during the period | 75 | 0 | 100 | 0 |
Income tax benefit (expense) | 137 | 185 | -362 | 1,334 |
Comprehensive income | $3,334 | $3,317 | $10,970 | $7,832 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (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, 2012 | $99,539 | $40 | $53,504 | $45,599 | $2,183 | ($1,787) |
Common stock shares outstanding at Dec. 31, 2012 | ' | 3,916,667 | ' | ' | ' | ' |
Net income | 9,986 | ' | ' | 9,986 | ' | ' |
Other comprehensive income | -2,154 | ' | ' | ' | -2,154 | ' |
Exercise of stock options, shares | ' | 51,700 | ' | ' | ' | ' |
Exercise of stock options | 1,138 | 1 | 1,137 | ' | ' | ' |
Share-based compensation - restricted shares, shares issued | ' | 25,030 | ' | ' | ' | ' |
Share-based compensation - restricted shares | 464 | ' | 464 | ' | ' | ' |
Share-based compensation - tax benefits | 123 | ' | 123 | ' | ' | ' |
Cash dividends ($0.28 per share during 2013 and $.42 per share during 2014) | -1,649 | ' | ' | -1,649 | ' | ' |
Treasury stock purchased, shares | ' | -54,974 | ' | ' | ' | ' |
Treasury stock purchased | -1,348 | ' | ' | ' | ' | -1,348 |
Ending balance at Sep. 30, 2013 | 106,099 | 41 | 55,228 | 53,936 | 29 | -3,135 |
Common stock shares outstanding at Sep. 30, 2013 | ' | 3,938,423 | ' | ' | ' | ' |
Beginning 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 | ' | ' | ' | ' |
Net income | 10,395 | ' | ' | 10,395 | ' | ' |
Other comprehensive income | 575 | ' | ' | ' | 575 | ' |
Exercise of stock options, shares | 2,000 | 2,000 | ' | ' | ' | ' |
Exercise of stock options | 48 | 0 | 48 | ' | ' | ' |
Share-based compensation - restricted shares, shares issued | ' | 23,386 | ' | ' | ' | ' |
Share-based compensation - restricted shares | 618 | ' | 618 | ' | ' | ' |
Share-based compensation - tax benefits | 226 | ' | 226 | ' | ' | ' |
Cash dividends ($0.28 per share during 2013 and $.42 per share during 2014) | -2,485 | ' | ' | -2,485 | ' | ' |
Treasury stock purchased, shares | ' | -10,268 | ' | ' | ' | ' |
Treasury stock purchased | -460 | ' | ' | ' | ' | -460 |
Ending balance at Sep. 30, 2014 | $118,192 | $41 | $56,894 | $65,053 | $233 | ($4,029) |
Common stock shares outstanding at Sep. 30, 2014 | 3,959,115 | 3,959,115 | ' | ' | ' | ' |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Common stock, cash dividends, per share, declared | $0.63 | $0.42 |
Retained earnings | ' | ' |
Common stock, cash dividends, per share, declared | $0.63 | $0.42 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net income | $10,395 | $9,986 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Deferred income taxes, net | 283 | 552 |
Provision for loan and lease losses | 0 | 243 |
Depreciation, amortization and accretion, net | 1,324 | 1,858 |
Share-based compensation | 618 | 464 |
Increase in cash surrender value of bank-owned life insurance | -630 | -634 |
Net (gain) loss on foreclosed properties, including impairment valuation | -5 | 1 |
Excess tax benefit from share-based compensation | -226 | -123 |
(Increase) decrease in accrued interest receivable and other assets | -396 | 2,465 |
Decrease in accrued interest payable and other liabilities | -124 | -3,489 |
Net cash provided by operating activities | 11,239 | 11,323 |
Investing activities | ' | ' |
Proceeds from maturities of available-for-sale securities | 34,185 | 52,266 |
Proceeds from maturities of held-to-maturity securities | 1,231 | 0 |
Purchases of available-for-sale securities | -40,310 | -42,956 |
Proceeds from sale of foreclosed properties | 232 | 1,573 |
Net increase in loans and leases | -60,836 | -45,438 |
Investment in limited partnerships | -500 | -500 |
Distributions from limited partnerships | 676 | 672 |
Investment in FHLB Stock | -467 | -1,185 |
Proceeds from sale of FHLB Stock | 373 | 1,074 |
Purchases of leasehold improvements and equipment, net | -285 | -450 |
Net cash used in investing activities | -65,701 | -34,944 |
Financing activities | ' | ' |
Net increase in deposits | 139,345 | 36,077 |
Repayment of FHLB advances | 0 | -469 |
Proceeds from issuance of subordinated notes payable | 15,000 | 0 |
Repayment of subordinated notes payable | -4,000 | 0 |
Excess tax benefit from share-based compensation | 226 | 123 |
Cash dividends paid | -2,485 | -1,371 |
Exercise of stock options | 48 | 1,137 |
Purchase of treasury stock | -460 | -1,348 |
Net cash provided by financing activities | 147,674 | 34,149 |
Net increase in cash and cash equivalents | 93,212 | 10,528 |
Cash and cash equivalents at the beginning of the period | 81,286 | 85,586 |
Cash and cash equivalents at the end of the period | 174,498 | 96,114 |
Supplementary cash flow information | ' | ' |
Interest paid on deposits and borrowings | 7,575 | 8,854 |
Income taxes paid | 5,128 | 5,775 |
Transfer of securities from available-for-sale to held-to-maturity | 44,587 | 0 |
Unrealized loss on transfer from available-for-sale to held-to-maturity | -874 | 0 |
Transfer to foreclosed properties | $0 | $595 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
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”) and 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, with a loan production office in Kenosha, Wisconsin. 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 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 Presentation. The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation's Consolidated Financial Statements and footnotes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2013. The unaudited 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 significantly change 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. The results of operations for the nine-month period ended September 30, 2014 are not necessarily indicative of results that may be expected for any other interim period or the entire fiscal year ending December 31, 2014. Certain amounts in prior periods may have been reclassified to conform to the current presentation. Subsequent events have been evaluated through the date of the issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. | |
The Corporation has not changed its significant accounting and reporting policies from those disclosed in the Corporation’s Form 10-K for the year ended December 31, 2013 except as described further below in this Note 1. | |
Recent Accounting Pronouncements. | |
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 became effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard did not 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. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The ASU is a converged standard between the FASB and the IASB that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The primary objective of the ASU is revenue recognition that represents the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is effective for interim and annual reporting periods beginning after December 15, 2016. 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. | |
In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation-Stock Compensation, to awards with performance conditions that affect vesting. For all entities, ASU 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. While the Corporation does not have any performance-based awards outstanding as of the reporting date, the Corporation’s equity incentive plan does allow for such awards. The Corporation is, therefore, 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. | |
In August 2014, the FASB issued ASU 2014-14, “Receivables - Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.” This ASU will require creditors to derecognize certain foreclosed government-guaranteed mortgage loans and to recognize a separate other receivable that is measured at the amount the creditor expects to recover from the guarantor, and to treat the guarantee and the receivable as a single unit of account. The ASU is effective for interim and annual periods beginning after December 15, 2014. An entity can elect a prospective or a modified retrospective transition method, but must use the same transition method that it elected under FASB ASU No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” 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 operation. | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in the financial statements. The standard provides accounting guidance that will be used along with existing auditing standards. The ASU is effective for interim and annual periods beginning after December 15, 2016. Early application 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 operation. |
Business_Combinations_Business
Business Combinations Business Combinations | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Business Combinations | ' |
Business Combinations | |
Effective November 1, 2014, the Corporation completed its acquisition of Aslin Group, Inc. (“Aslin Group”), including Alterra Bank, Aslin Group’s wholly-owned subsidiary (“Alterra”). On May 22, 2014, the Corporation entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Aslin Group and AGI Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of the Corporation (the “Merger Sub”). Under the terms of the Merger Agreement, the Merger Sub merged with and into Aslin Group (the “Merger”), with Aslin Group continuing as the surviving corporation of the Merger, and each outstanding share of common stock of Aslin Group (other than shares held in the treasury of Aslin Group, owned by the Corporation or any subsidiary of the Corporation, or subject to validly exercised appraisal rights) ceased to be outstanding and were converted into the right to receive a combination of shares of common stock of the Corporation and cash, as described in more detail below. Immediately following the Merger, Aslin Group merged with and into the Corporation in a second merger, with the Corporation continuing as the surviving corporation. As a result of the mergers, Alterra Bank has become a wholly-owned subsidiary of the Corporation. The separate corporate existence of Aslin Group ceased as of the effective time of the second merger. The acquisition of Aslin Group is not considered a significant business combination, as defined in accordance with Regulation S-X, and, accordingly, pro-forma financial information is not required. | |
The cash-and-stock transaction was valued at $30.1 million. Under the terms of the definitive agreement, each outstanding share of common stock of Aslin Group was converted into the right to receive merger consideration valued at $14,435.59, payable in $6,496.02 of cash and $7,939.57 of the Corporation’s common stock. The number of the Corporation’s common shares issued was calculated based on the Corporation’s 10-day volume-weighted average stock price (“VWAP”) as of the market close on the third business day prior to the effective date of the transaction. Based upon the VWAP of $45.9825, 360,081 shares will be issued to the Aslin Group shareholders. The cash portion of the consideration will be paid to Aslin Group shareholders with a portion of the proceeds received from $15.0 million of subordinated notes issued by the Corporation on August 26, 2014 upon entering into Subordinated Note Purchase Agreements with three accredited investors. | |
For the nine-months ended September 30, 2014, the Corporation incurred $424,000 in non-recurring transaction costs related to the merger with Aslin Group. These costs primarily consist of facilitative professional service fees incurred to complete the merger transaction. |
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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. | |||||||||||||||||
For the three-month periods ended September 30, 2014 and 2013, there were no average anti-dilutive employee share-based awards. For the nine-month periods ended September 30, 2014 and 2013, average anti-dilutive employee share-based awards totaled 0 and 366, respectively. | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Dollars in Thousands, Except Per Share Data) | |||||||||||||||||
Basic earnings per common share | |||||||||||||||||
Net income | $ | 3,553 | $ | 3,609 | $ | 10,395 | $ | 9,986 | |||||||||
Less: earnings allocated to participating securities | 75 | 89 | 222 | 242 | |||||||||||||
Basic earnings allocated to common shareholders | $ | 3,478 | $ | 3,520 | $ | 10,173 | $ | 9,744 | |||||||||
Weighted-average common shares outstanding, excluding participating securities | 3,867,835 | 3,831,227 | 3,862,504 | 3,826,809 | |||||||||||||
Basic earnings per common share | $ | 0.9 | $ | 0.92 | $ | 2.63 | $ | 2.55 | |||||||||
Diluted earnings per common share | |||||||||||||||||
Earnings allocated to common shareholders | $ | 3,478 | $ | 3,520 | $ | 10,173 | $ | 9,744 | |||||||||
Reallocation of undistributed earnings | — | — | 1 | 1 | |||||||||||||
Diluted earnings allocated to common shareholders | $ | 3,478 | $ | 3,520 | $ | 10,174 | $ | 9,745 | |||||||||
Weighted-average common shares outstanding, excluding participating securities | 3,867,835 | 3,831,227 | 3,862,504 | 3,826,809 | |||||||||||||
Dilutive effect of share-based awards | 21,844 | 18,335 | 22,089 | 13,062 | |||||||||||||
Weighted-average diluted common shares outstanding, excluding participating securities | 3,889,679 | 3,849,562 | 3,884,593 | 3,839,871 | |||||||||||||
Diluted earnings per common share | $ | 0.89 | $ | 0.91 | $ | 2.62 | $ | 2.54 | |||||||||
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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, dividend equivalent units, and any other type of award permitted by the Plan. As of September 30, 2014, 178,877 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 Plan 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 have been granted since the Corporation became a reporting company under the Securities Exchange Act of 1934, as amended, 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 three and nine months ended September 30, 2014 and 2013. As of September 30, 2014, all Stock Options granted and not previously forfeited have vested. The benefits of tax deductions as a result of disqualifying dispositions upon exercise of stock options are recognized as a financing cash flow. | ||||||||||||||||
Stock Option activity for the year ended December 31, 2013 and nine months ended September 30, 2014 was as follows: | ||||||||||||||||
Options | Weighted | Weighted | ||||||||||||||
Average | Average | |||||||||||||||
Exercise Price | Remaining | |||||||||||||||
Contractual | ||||||||||||||||
Life (Years) | ||||||||||||||||
Outstanding at December 31, 2012 | 124,034 | $ | 22.43 | 0.75 | ||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (69,684 | ) | 21.13 | |||||||||||||
Expired | (3,350 | ) | 22 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2013 | 51,000 | $ | 24.24 | 0.88 | ||||||||||||
Exercisable at December 31, 2013 | 51,000 | $ | 24.24 | 0.88 | ||||||||||||
Outstanding as of December 31, 2013 | 51,000 | $ | 24.24 | 0.88 | ||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (2,000 | ) | 24 | |||||||||||||
Expired | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding as of September 30, 2014 | 49,000 | $ | 24.24 | 0.13 | ||||||||||||
Exercisable at September 30, 2014 | 49,000 | $ | 24.24 | 0.13 | ||||||||||||
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 year ended December 31, 2013 and the nine months ended September 30, 2014 was as follows: | ||||||||||||||||
Number of | Weighted Average | |||||||||||||||
Restricted Shares | Grant-Date | |||||||||||||||
Fair Value | ||||||||||||||||
Nonvested balance as of December 31, 2012 | 94,506 | $ | 18.19 | |||||||||||||
Granted | 25,030 | 33 | ||||||||||||||
Vested | (34,827 | ) | 16.88 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Nonvested balance as of December 31, 2013 | 84,709 | 23.1 | ||||||||||||||
Granted | 23,386 | 44.34 | ||||||||||||||
Vested | (23,596 | ) | 23.28 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Nonvested balance as of September 30, 2014 | 84,499 | $ | 28.93 | |||||||||||||
As of September 30, 2014, $2.1 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 a weighted-average period of approximately three years. As of September 30, 2014, all restricted shares that vested were delivered. | ||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, share-based compensation expense related to restricted stock included in the Consolidated Statements of Income was as follows: | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Share-based compensation expense | $ | 229 | $ | 173 | $ | 618 | $ | 464 | ||||||||
Securities
Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrealized | unrealized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 7,250 | $ | — | $ | (79 | ) | $ | 7,171 | ||||||||||||||||
Asset-backed securities | 1,515 | — | (1 | ) | 1,514 | ||||||||||||||||||||
Collateralized mortgage obligations - government issued | 74,535 | 1,686 | (336 | ) | 75,885 | ||||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 57,973 | 166 | (282 | ) | 57,857 | ||||||||||||||||||||
$ | 141,273 | $ | 1,852 | $ | (698 | ) | $ | 142,427 | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrealized | unrealized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
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 | |||||||||||||||||
The amortized cost and estimated fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses were as follows: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrecognized | unrecognized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 1,487 | $ | — | $ | (24 | ) | $ | 1,463 | ||||||||||||||||
Municipal obligations | 16,100 | 16 | (65 | ) | 16,051 | ||||||||||||||||||||
Collateralized mortgage obligations - government issued | 15,145 | 5 | (113 | ) | 15,037 | ||||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 9,790 | — | (129 | ) | 9,661 | ||||||||||||||||||||
$ | 42,522 | $ | 21 | $ | (331 | ) | $ | 42,212 | |||||||||||||||||
During the quarter ended June 30, 2014, the Corporation transferred securities with an amortized cost of $44.6 million, previously designated as available-for-sale, to held-to-maturity classification. The fair value of those securities as of the date of the transfer was $43.7 million, reflecting a net unrealized loss of $874,000. The fair value as of the transfer date became the new amortized cost over the life of the security. No gain or loss was recognized at the time of the transfer. This transfer was completed after consideration of the Corporation’s ability and intent to hold these securities to maturity. | |||||||||||||||||||||||||
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 the 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 for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, securities with a fair value of $35.0 million and $42.3 million, respectively, were pledged to secure interest rate swap contracts, outstanding Federal Home Loan Bank (“FHLB”) advances, if any, and additional FHLB availability. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of securities by contractual maturity at September 30, 2014 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations without call or prepayment penalties. | |||||||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||||||||
Amortized cost | Estimated | Amortized cost | Estimated | ||||||||||||||||||||||
fair value | fair value | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Due in one year through five years | 7,736 | 7,672 | 2,288 | 2,266 | |||||||||||||||||||||
Due in five through ten years | 59,260 | 59,640 | 13,531 | 13,493 | |||||||||||||||||||||
Due in over ten years | 74,277 | 75,115 | 26,703 | 26,453 | |||||||||||||||||||||
$ | 141,273 | $ | 142,427 | $ | 42,522 | $ | 42,212 | ||||||||||||||||||
The tables below show the Corporation’s gross unrealized losses and fair value of available-for-sale investments with unrealized losses and the gross unrecognized losses and fair value of held-to-maturity investments, aggregated by investment category and length of time that individual investments were in a continuous loss position at September 30, 2014 and December 31, 2013. At September 30, 2014 and December 31, 2013, the Corporation held 58 and 131 available-for-sale securities that were in a 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 September 30, 2014, the Corporation held 24 available-for-sale securities that had been in a continuous loss position for twelve months or greater. | |||||||||||||||||||||||||
The Corporation also has not specifically identified available-for-sale 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 nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||
A summary of unrealized loss information for securities available-for-sale, categorized by security type follows: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 2,491 | $ | 9 | $ | 4,680 | $ | 70 | $ | 7,171 | $ | 79 | |||||||||||||
Asset-backed securities | — | — | 1,514 | 1 | 1,514 | 1 | |||||||||||||||||||
Collateralized mortgage obligations - government issued | 8,041 | 44 | 11,404 | 292 | 19,445 | 336 | |||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 34,805 | 132 | 5,275 | 150 | 40,080 | 282 | |||||||||||||||||||
$ | 45,337 | $ | 185 | $ | 22,873 | $ | 513 | $ | 68,210 | $ | 698 | ||||||||||||||
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) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
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 | ||||||||||||||
The tables below show the Corporation’s gross unrecognized losses and fair value of held-to-maturity investments, aggregated by investment category and length of time that individual investments were in a continuous loss position at September 30, 2014. At September 30, 2014, the Corporation held 74 held-to-maturity securities that were in an unrecognized loss position. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. There were no held-to-maturity securities that had been in a continuous loss position for twelve months or greater as of September 30, 2014. It is expected that the Corporation will recover the entire amortized cost basis of each held-to-maturity 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 nine months ended September 30, 2014. | |||||||||||||||||||||||||
A summary of unrecognized loss information for securities held-to-maturity, categorized by security type follows: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair value | Unrecognized | Fair value | Unrecognized | Fair value | Unrecognized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 1,487 | $ | 24 | $ | — | $ | — | $ | 1,487 | $ | 24 | |||||||||||||
Municipal obligations | 11,795 | 65 | — | — | 11,795 | 65 | |||||||||||||||||||
Collateralized mortgage obligations - government issued | 11,448 | 113 | — | — | 11,448 | 113 | |||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 9,790 | 129 | — | — | 9,790 | 129 | |||||||||||||||||||
$ | 34,520 | $ | 331 | $ | — | $ | — | $ | 34,520 | $ | 331 | ||||||||||||||
There were no securities designated as held-to-maturity as of December 31, 2013. |
Loan_and_Lease_Receivables_Imp
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 144,017 | $ | 141,164 | |||||||||||||||||||||||||
Commercial real estate — non-owner occupied | 328,730 | 341,695 | |||||||||||||||||||||||||||
Construction and land development | 86,150 | 68,708 | |||||||||||||||||||||||||||
Multi-family | 70,483 | 62,758 | |||||||||||||||||||||||||||
1-4 family | 25,208 | 30,786 | |||||||||||||||||||||||||||
Total commercial real estate | 654,588 | 645,111 | |||||||||||||||||||||||||||
Commercial and industrial | 336,746 | 293,552 | |||||||||||||||||||||||||||
Direct financing leases, net | 34,474 | 26,065 | |||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Home equity and second mortgages | 4,061 | 5,272 | |||||||||||||||||||||||||||
Other | 12,773 | 11,972 | |||||||||||||||||||||||||||
Total consumer and other | 16,834 | 17,244 | |||||||||||||||||||||||||||
Total gross loans and leases receivable | 1,042,642 | 981,972 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Allowance for loan and lease losses | 13,930 | 13,901 | |||||||||||||||||||||||||||
Deferred loan fees | 826 | 1,021 | |||||||||||||||||||||||||||
Loans and leases receivable, net | $ | 1,027,886 | $ | 967,050 | |||||||||||||||||||||||||
The total principal amount of loans transferred to third parties, which consisted solely of participation interests in originated loans, during the three months ended September 30, 2014 and 2013 was $5.5 million and $17.0 million, respectively. For the nine months ended September 30, 2014 and 2013, $16.1 million and $29.8 million of loans were transfered 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 all of the loans transferred during the three and nine months ended September 30, 2014 and September 30, 2013 have been derecognized in the unaudited Consolidated Financial Statements. The Corporation has a continuing involvement in each of the agreements 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 represents adequate compensation. The total amount of loan participations purchased on the Corporation’s Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013 was $1.5 million and $498,000, respectively. | |||||||||||||||||||||||||||||
The total amount of outstanding loans transferred to third parties as loan participations sold at September 30, 2014 and December 31, 2013 was $46.5 million and $52.1 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 September 30, 2014 and December 31, 2013, the total amount of the Corporation’s partial ownership of loans on the Corporation’s Consolidated Balance Sheets was $66.2 million and $77.2 million, respectively. As of September 30, 2014 and December 31, 2013, no loans in this participation sold portfolio were considered impaired. 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. The repurchase was not a condition of the original participation agreement and was undertaken to provide the Corporation with complete discretion in the workout process of this loan. At September 30, 2014 and December 31, 2013, the carrying amount of the loan purchased with deteriorated credit quality was $1.3 million and $1.4 million, respectively. The loan is classified as a non-performing 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 nine months ended September 30, 2014, 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 September 30, 2014 to support the carrying value. | |||||||||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
Category | |||||||||||||||||||||||||||||
As of September 30, 2014 | I | II | III | IV | Total | ||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 118,039 | $ | 12,721 | $ | 12,672 | $ | 585 | $ | 144,017 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 291,908 | 15,732 | 20,816 | 274 | 328,730 | ||||||||||||||||||||||||
Construction and land development | 72,312 | 2,423 | 6,357 | 5,058 | 86,150 | ||||||||||||||||||||||||
Multi-family | 69,708 | 755 | — | 20 | 70,483 | ||||||||||||||||||||||||
1-4 family | 16,905 | 4,819 | 2,904 | 580 | 25,208 | ||||||||||||||||||||||||
Total commercial real estate | 568,872 | 36,450 | 42,749 | 6,517 | 654,588 | ||||||||||||||||||||||||
Commercial and industrial (1) | 311,274 | 13,195 | 3,497 | 8,780 | 336,746 | ||||||||||||||||||||||||
Direct financing leases, net | 32,507 | 1,652 | 315 | — | 34,474 | ||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 3,562 | 20 | 146 | 333 | 4,061 | ||||||||||||||||||||||||
Other | 12,008 | 2 | — | 763 | 12,773 | ||||||||||||||||||||||||
Total consumer and other | 15,570 | 22 | 146 | 1,096 | 16,834 | ||||||||||||||||||||||||
Total gross loans and leases receivable | $ | 928,223 | $ | 51,319 | $ | 46,707 | $ | 16,393 | $ | 1,042,642 | |||||||||||||||||||
Category as a % of total portfolio | 89.03 | % | 4.92 | % | 4.48 | % | 1.57 | % | 100 | % | |||||||||||||||||||
(1) Subsequent to September 30, 2014, $6.2 million of principal for one loan in Category IV was paid in full. | |||||||||||||||||||||||||||||
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 | % | |||||||||||||||||||
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 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 $26.1 million and $22.8 million of loans and leases as Substandard as of September 30, 2014 and December 31, 2013, respectively. No loans were considered Special Mention, Doubtful or Loss as of either September 30, 2014 or December 31, 2013. The population of Substandard loans are all Category IV loans and a subset of Category III loans. | |||||||||||||||||||||||||||||
The delinquency aging of the loan and lease portfolio by class of receivable as of September 30, 2014 and December 31, 2013 is as follows: | |||||||||||||||||||||||||||||
As of September 30, 2014 | 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 | $ | — | $ | — | $ | — | $ | — | $ | 143,510 | $ | 143,510 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 328,456 | 328,456 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 81,124 | 81,124 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 70,463 | 70,463 | |||||||||||||||||||||||
1-4 family | — | — | — | — | 24,842 | 24,842 | |||||||||||||||||||||||
Commercial and industrial | — | — | — | — | 327,997 | 327,997 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 34,474 | 34,474 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | — | — | 3,929 | 3,929 | |||||||||||||||||||||||
Other | — | — | — | — | 12,010 | 12,010 | |||||||||||||||||||||||
Total | — | — | — | — | 1,026,805 | 1,026,805 | |||||||||||||||||||||||
Non-accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | — | $ | — | $ | 507 | $ | 507 | |||||||||||||||||
Non-owner occupied | — | — | 219 | 219 | 55 | 274 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 5,026 | 5,026 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 20 | 20 | |||||||||||||||||||||||
1-4 family | 168 | — | 107 | 275 | 91 | 366 | |||||||||||||||||||||||
Commercial and industrial | — | — | 6,375 | 6,375 | 2,374 | 8,749 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 56 | — | — | 56 | 76 | 132 | |||||||||||||||||||||||
Other | — | — | 763 | 763 | — | 763 | |||||||||||||||||||||||
Total | 224 | — | 7,464 | 7,688 | 8,149 | 15,837 | |||||||||||||||||||||||
Total loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | — | $ | — | $ | 144,017 | $ | 144,017 | |||||||||||||||||
Non-owner occupied | — | — | 219 | 219 | 328,511 | 328,730 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 86,150 | 86,150 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 70,483 | 70,483 | |||||||||||||||||||||||
1-4 family | 168 | — | 107 | 275 | 24,933 | 25,208 | |||||||||||||||||||||||
Commercial and industrial (1) | — | — | 6,375 | 6,375 | 330,371 | 336,746 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 34,474 | 34,474 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 56 | — | — | 56 | 4,005 | 4,061 | |||||||||||||||||||||||
Other | — | — | 763 | 763 | 12,010 | 12,773 | |||||||||||||||||||||||
Total | $ | 224 | $ | — | $ | 7,464 | $ | 7,688 | $ | 1,034,954 | $ | 1,042,642 | |||||||||||||||||
Percent of portfolio | 0.02 | % | — | % | 0.72 | % | 0.74 | % | 99.26 | % | 100 | % | |||||||||||||||||
(1) Subsequent to September 30, 2014, $6.2 million of principal for one loan in the greater than 90 days past due category was paid in full. | |||||||||||||||||||||||||||||
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 and 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 and 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 and 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 | % | |||||||||||||||||
The Corporation’s total impaired assets consisted of the following at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Non-accrual loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 507 | $ | 339 | |||||||||||||||||||||||||
Commercial real estate — non-owner occupied | 274 | 283 | |||||||||||||||||||||||||||
Construction and land development | 5,026 | 5,422 | |||||||||||||||||||||||||||
Multi-family | 20 | 31 | |||||||||||||||||||||||||||
1-4 family | 366 | 521 | |||||||||||||||||||||||||||
Total non-accrual commercial real estate | 6,193 | 6,596 | |||||||||||||||||||||||||||
Commercial and industrial | 8,749 | 8,011 | |||||||||||||||||||||||||||
Direct financing leases, net | — | — | |||||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 132 | 453 | |||||||||||||||||||||||||||
Other | 763 | 795 | |||||||||||||||||||||||||||
Total non-accrual consumer and other loans | 895 | 1,248 | |||||||||||||||||||||||||||
Total non-accrual loans and leases | 15,837 | 15,855 | |||||||||||||||||||||||||||
Foreclosed properties, net | 106 | 333 | |||||||||||||||||||||||||||
Total non-performing assets | 15,943 | 16,188 | |||||||||||||||||||||||||||
Performing troubled debt restructurings | 556 | 371 | |||||||||||||||||||||||||||
Total impaired assets | $ | 16,499 | $ | 16,559 | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Total non-accrual loans and leases to gross loans and leases | 1.52 | % | 1.61 | % | |||||||||||||||||||||||||
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 1.53 | 1.65 | |||||||||||||||||||||||||||
Total non-performing assets to total assets | 1.12 | 1.28 | |||||||||||||||||||||||||||
Allowance for loan and lease losses to gross loans and leases | 1.34 | 1.42 | |||||||||||||||||||||||||||
Allowance for loan and lease losses to non-accrual loans and leases | 87.96 | 87.68 | |||||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, $7.2 million and $8.1 million of the non-accrual loans were considered troubled debt restructurings, respectively. As of September 30, 2014, there were no unfunded commitments associated with troubled debt restructured loans and leases. | |||||||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||
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 | 2 | $ | 624 | $ | 585 | 1 | $ | 110 | $ | 84 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 4 | 390 | 274 | 3 | 385 | 283 | |||||||||||||||||||||||
Construction and land development | 3 | 6,060 | 5,058 | 3 | 6,060 | 5,489 | |||||||||||||||||||||||
Multi-family | 1 | 184 | 20 | 1 | 184 | 31 | |||||||||||||||||||||||
1-4 family | 9 | 861 | 579 | 10 | 911 | 666 | |||||||||||||||||||||||
Commercial and industrial | 4 | 361 | 170 | 5 | 1,935 | 565 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 5 | 602 | 333 | 6 | 752 | 580 | |||||||||||||||||||||||
Other | 1 | 2,077 | 763 | 1 | 2,076 | 795 | |||||||||||||||||||||||
Total | 29 | $ | 11,159 | $ | 7,782 | 30 | $ | 12,413 | $ | 8,493 | |||||||||||||||||||
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 September 30, 2014 and December 31, 2013, the Corporation’s troubled debt restructurings grouped by type of concession were as follows: | |||||||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||
Number | Recorded Investment | Number | Recorded Investment | ||||||||||||||||||||||||||
of | of | ||||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Extension of term | 1 | $ | 43 | 1 | $ | 55 | |||||||||||||||||||||||
Combination of extension and interest rate concession | 18 | 6,473 | 17 | 6,498 | |||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Extension of term | — | — | 1 | 49 | |||||||||||||||||||||||||
Combination of extension and interest rate concession | 4 | 170 | 4 | 516 | |||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Extension of term | 1 | 763 | 2 | 880 | |||||||||||||||||||||||||
Combination of extension and interest rate concession | 5 | 333 | 5 | 495 | |||||||||||||||||||||||||
Total | 29 | $ | 7,782 | 30 | $ | 8,493 | |||||||||||||||||||||||
There were no loans and leases modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the nine months ended September 30, 2014. | |||||||||||||||||||||||||||||
The following represents additional information regarding the Corporation’s impaired loans and leases by class: | |||||||||||||||||||||||||||||
Impaired Loans and Leases | |||||||||||||||||||||||||||||
As of and for the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||
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 | $ | 78 | $ | 78 | $ | — | $ | 164 | $ | 9 | $ | 79 | $ | (70 | ) | ||||||||||||||
Non-owner occupied | 224 | 224 | — | 226 | 8 | — | 8 | ||||||||||||||||||||||
Construction and land development | 5,058 | 7,729 | — | 5,344 | 118 | — | 118 | ||||||||||||||||||||||
Multi-family | 20 | 387 | — | 26 | 40 | — | 40 | ||||||||||||||||||||||
1-4 family | 181 | 181 | — | 222 | 7 | 12 | (5 | ) | |||||||||||||||||||||
Commercial and industrial | 8,746 | 8,757 | — | 6,833 | 360 | 220 | 140 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 277 | 277 | — | 509 | 15 | — | 15 | ||||||||||||||||||||||
Other | 763 | 1,429 | — | 776 | 65 | — | 65 | ||||||||||||||||||||||
Total | 15,347 | 19,062 | — | 14,100 | 622 | 311 | 311 | ||||||||||||||||||||||
With impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 507 | $ | 507 | $ | 106 | $ | 286 | $ | 15 | $ | — | $ | 15 | |||||||||||||||
Non-owner occupied | 50 | 90 | 50 | 52 | 3 | — | 3 | ||||||||||||||||||||||
Construction and land development | — | — | — | — | — | — | — | ||||||||||||||||||||||
Multi-family | — | — | — | — | — | — | — | ||||||||||||||||||||||
1-4 family | 399 | 399 | 165 | 409 | 13 | — | 13 | ||||||||||||||||||||||
Commercial and industrial | 34 | 34 | 34 | 35 | — | — | — | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 56 | 56 | 56 | 58 | 4 | — | 4 | ||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 1,046 | 1,086 | 411 | 840 | 35 | — | 35 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 585 | $ | 585 | $ | 106 | $ | 450 | $ | 24 | $ | 79 | $ | (55 | ) | ||||||||||||||
Non-owner occupied | 274 | 314 | 50 | 278 | 11 | — | 11 | ||||||||||||||||||||||
Construction and land development | 5,058 | 7,729 | — | 5,344 | 118 | — | 118 | ||||||||||||||||||||||
Multi-family | 20 | 387 | — | 26 | 40 | — | 40 | ||||||||||||||||||||||
1-4 family | 580 | 580 | 165 | 631 | 20 | 12 | 8 | ||||||||||||||||||||||
Commercial and industrial | 8,780 | 8,791 | 34 | 6,868 | 360 | 220 | 140 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 333 | 333 | 56 | 567 | 19 | — | 19 | ||||||||||||||||||||||
Other | 763 | 1,429 | — | 776 | 65 | — | 65 | ||||||||||||||||||||||
Grand total | $ | 16,393 | $ | 20,148 | $ | 411 | $ | 14,940 | $ | 657 | $ | 311 | $ | 346 | |||||||||||||||
-1 | Average recorded investment is calculated primarily using daily average balances. | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
The difference between the loans and leases recorded investment and the unpaid principal balance of $3.8 million and $4.0 million as of September 30, 2014 and December 31, 2013 represents partial charge-offs resulting from confirmed losses due to the value of the collateral securing the loans and leases being below the carrying values of the loans and leases. Impaired loans and leases also included $556,000 and $371,000 of loans as of September 30, 2014 and December 31, 2013, 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 accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. 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 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. | |||||||||||||||||||||||||||||
A summary of the activity in the allowance for loan and lease losses by portfolio segment is as follows: | |||||||||||||||||||||||||||||
As of and for the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Direct | Total | |||||||||||||||||||||||||
real estate | and | and other | financing | ||||||||||||||||||||||||||
industrial | leases, net | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 9,055 | $ | 4,235 | $ | 273 | $ | 338 | $ | 13,901 | |||||||||||||||||||
Charge-offs | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||
Recoveries | 20 | 1 | 10 | — | 31 | ||||||||||||||||||||||||
Provision | (387 | ) | 334 | (30 | ) | 83 | — | ||||||||||||||||||||||
Ending balance | $ | 8,688 | $ | 4,570 | $ | 251 | $ | 421 | $ | 13,930 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 321 | $ | 34 | $ | 56 | $ | — | $ | 411 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,367 | $ | 4,536 | $ | 195 | $ | 421 | $ | 13,519 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Loans and lease receivables: | |||||||||||||||||||||||||||||
Ending balance, gross | $ | 654,588 | $ | 336,746 | $ | 16,834 | $ | 34,474 | $ | 1,042,642 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 5,198 | $ | 8,780 | $ | 1,096 | $ | — | $ | 15,074 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 648,071 | $ | 327,966 | $ | 15,738 | $ | 34,474 | $ | 1,026,249 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 1,319 | $ | — | $ | — | $ | — | $ | 1,319 | |||||||||||||||||||
Allowance as % of gross loans | 1.33 | % | 1.36 | % | 1.49 | % | 1.22 | % | 1.34 | % | |||||||||||||||||||
As of and for the Nine Months Ended September 30, 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 | (776 | ) | (14 | ) | (4 | ) | — | (794 | ) | ||||||||||||||||||||
Recoveries | 323 | 4 | 4 | 5 | 336 | ||||||||||||||||||||||||
Provision | 80 | 121 | (54 | ) | 96 | 243 | |||||||||||||||||||||||
Ending balance | $ | 10,320 | $ | 4,240 | $ | 317 | $ | 308 | $ | 15,185 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 631 | $ | 36 | $ | 63 | $ | — | $ | 730 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 9,689 | $ | 4,204 | $ | 254 | $ | 308 | $ | 14,455 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Loans and lease receivables: | |||||||||||||||||||||||||||||
Ending balance, gross | $ | 641,349 | $ | 276,094 | $ | 15,596 | $ | 24,359 | $ | 957,398 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 6,947 | $ | 654 | $ | 1,378 | $ | — | $ | 8,979 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 632,936 | $ | 275,440 | $ | 14,218 | $ | 24,359 | $ | 946,953 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 1,466 | $ | — | $ | — | $ | — | $ | 1,466 | |||||||||||||||||||
Allowance as % of gross loans | 1.61 | % | 1.54 | % | 2.03 | % | 1.26 | % | 1.59 | % | |||||||||||||||||||
Deposits
Deposits | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Deposits [Abstract] | ' | ||||||||||||||||||||||
Deposits | ' | ||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
The composition of deposits at September 30, 2014 and December 31, 2013 was as follows. Weighted average balances represent year-to-date averages. | |||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Balance | Weighted | Weighted | Balance | Weighted | Weighted | ||||||||||||||||||
average | average rate | average | average rate | ||||||||||||||||||||
balance | balance | ||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Non-interest-bearing transaction accounts | $ | 165,980 | $ | 142,302 | — | % | $ | 151,275 | $ | 138,920 | — | % | |||||||||||
Interest-bearing transaction accounts | 88,478 | 81,039 | 0.23 | 77,004 | 62,578 | 0.2 | |||||||||||||||||
Money market accounts | 560,965 | 465,708 | 0.51 | 456,065 | 450,558 | 0.53 | |||||||||||||||||
Certificates of deposit | 43,691 | 47,536 | 0.98 | 51,979 | 60,276 | 1.01 | |||||||||||||||||
Brokered certificates of deposit | 410,086 | 410,757 | 1.51 | 393,532 | 393,726 | 1.68 | |||||||||||||||||
Total deposits | $ | 1,269,200 | $ | 1,147,342 | 0.8 | $ | 1,129,855 | $ | 1,106,058 | 0.88 | |||||||||||||
FHLB_Advances_Other_Borrowings
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable | ' | ||||||||||||||||||||||
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable | |||||||||||||||||||||||
The composition of borrowed funds at September 30, 2014 and December 31, 2013 was as follows. Weighted average balances represent year-to-date averages. | |||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Balance | Weighted | Weighted | Balance | Weighted | Weighted | ||||||||||||||||||
average | average | average | average | ||||||||||||||||||||
balance | rate | balance | rate | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | — | $ | 148 | 0.81 | % | $ | — | $ | 260 | 0.74 | % | |||||||||||
FHLB advances | — | 4,604 | 0.16 | — | 6,471 | 0.19 | |||||||||||||||||
Line of credit | 10 | 10 | 3.29 | 10 | 10 | 3.41 | |||||||||||||||||
Subordinated notes payable | 22,926 | 10,139 | 7.16 | 11,926 | 11,926 | 6.92 | |||||||||||||||||
Junior subordinated notes | 10,315 | 10,315 | 10.76 | 10,315 | 10,315 | 10.78 | |||||||||||||||||
$ | 33,251 | $ | 25,216 | 7.36 | $ | 22,251 | $ | 28,982 | 6.78 | ||||||||||||||
Short-term borrowings | $ | 10 | $ | 10 | |||||||||||||||||||
Long-term borrowings | 33,241 | 22,241 | |||||||||||||||||||||
$ | 33,251 | $ | 22,251 | ||||||||||||||||||||
As of September 30, 2014, the Corporation was in compliance with its debt covenants under its third party senior line of credit. The Corporation pays an unused line fee on its secured senior line of credit. During the nine months ended September 30, 2014 and 2013, the Corporation incurred $10,000 additional interest expense due to this fee. | |||||||||||||||||||||||
On August 26, 2014, the Corporation entered into Subordinated Note Purchase Agreements with three accredited investors under which the Corporation issued an aggregate of $15.0 million of subordinated notes (the “Notes”) to the accredited investors. The Notes have a maturity date of September 1, 2024 and will bear interest at a fixed rate of 6.50% per annum for the first five years of the instrument. From and including September 1, 2019 to the maturity date, the interest rate shall reset quarterly to an interest rate per annum equal to the then-current three-month LIBOR rate plus 470 basis points, payable quarterly in arrears. | |||||||||||||||||||||||
The Corporation may, at its option, beginning with the interest payment date of September 1, 2019 and on any interest payment date thereafter, redeem the Notes, in whole or in part at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to the date of redemption. Any partial redemption will be made pro rata among all of the holders. The Notes are not subject to repayment at the option of the holders. | |||||||||||||||||||||||
The Corporation intends to pay approximately $13.5 million of the net proceeds of the Notes as the cash portion of the merger consideration in the previously announced acquisition of Aslin Group, Inc. and its subsidiary, Alterra Bank. The Corporation also plans to retain a portion of the net proceeds to increase its regulatory capital and for general corporate purposes. |
Fair_Value_Disclosures
Fair Value Disclosures | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||
Fair Value Disclosures | |||||||||||||||||||||
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 supported by little or no market activity and 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 | |||||||||||||||||||||
September 30, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||
Asset backed securities | $ | — | $ | 1,514 | $ | — | $ | 1,514 | |||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | — | 7,171 | — | 7,171 | |||||||||||||||||
Collateralized mortgage obligations - government issued | — | 75,885 | — | 75,885 | |||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | — | 57,857 | — | 57,857 | |||||||||||||||||
Interest rate swaps | — | 456 | — | 456 | |||||||||||||||||
Liabilities: | — | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 456 | $ | — | $ | 456 | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||
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 | |||||||||||||
For assets and liabilities measured at fair value on a recurring basis, there were no transfers between the levels during the nine months ended September 30, 2014 or the year ended December 31, 2013 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 Nine Months Ended September 30, 2014 | |||||||||||||||||||||
Balance at | Fair Value Measurements Using | Total | |||||||||||||||||||
Gains | |||||||||||||||||||||
September 30, | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
2014 | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Impaired loans | $ | 6,301 | $ | — | $ | 6,252 | $ | 49 | $ | — | |||||||||||
Foreclosed properties | 106 | — | 106 | — | (4 | ) | |||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at | Fair Value Measurements Using | Total | |||||||||||||||||||
Gains | |||||||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
2013 | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Impaired loans | $ | 13,719 | $ | — | $ | 13,666 | $ | 53 | $ | — | |||||||||||
Foreclosed properties | 333 | — | 333 | — | (59 | ) | |||||||||||||||
Impaired loans that are collateral dependent were written down to their net realizable value of $6.3 million and $13.7 million at September 30, 2014 and December 31, 2013, 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, and are reflected within Level 2 of the hierarchy. In cases where an input is 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 impaired loan values range from 19% - 100%. The weighted average of those unobservable inputs as of the measurement date of September 30, 2014 was 58%. 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 a current 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 September 30, 2014, there were no foreclosed properties supported by a Level 3 valuation. The activity of the Corporation’s foreclosed properties is summarized as follows: | |||||||||||||||||||||
As of and for the Nine Months Ended September 30, 2014 | As of and for the Year Ended December 31, 2013 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Foreclosed properties at the beginning of the period | $ | 333 | $ | 1,574 | |||||||||||||||||
Loans transferred to foreclosed properties, at lower of cost or fair value | — | 1,381 | |||||||||||||||||||
Proceeds from sale of foreclosed properties | (232 | ) | (2,739 | ) | |||||||||||||||||
Net gain on sale of foreclosed properties | 9 | 176 | |||||||||||||||||||
Impairment valuation | (4 | ) | (59 | ) | |||||||||||||||||
Foreclosed properties at the end of the period | $ | 106 | $ | 333 | |||||||||||||||||
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: | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 174,498 | $ | 174,502 | $ | 159,008 | $ | 5,394 | $ | 10,100 | |||||||||||
Securities available-for-sale | 142,427 | 142,427 | — | 142,427 | — | ||||||||||||||||
Securities held-to-maturity | 42,522 | 42,212 | — | 42,212 | — | ||||||||||||||||
Loans and lease receivables, net | 1,027,886 | 1,024,896 | — | 6,252 | 1,018,644 | ||||||||||||||||
Federal Home Loan Bank stock | 1,349 | 1,349 | — | — | 1,349 | ||||||||||||||||
Cash surrender value of life insurance | 23,772 | 23,772 | 23,772 | — | — | ||||||||||||||||
Accrued interest receivable | 3,164 | 3,164 | 3,164 | — | — | ||||||||||||||||
Interest rate swaps | 456 | 456 | — | 456 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 1,269,200 | $ | 1,270,993 | $ | 815,422 | $ | 455,571 | $ | — | |||||||||||
Federal Home Loan Bank and other borrowings | 22,936 | 22,865 | — | 22,865 | — | ||||||||||||||||
Junior subordinated notes | 10,315 | 7,098 | — | — | 7,098 | ||||||||||||||||
Interest rate swaps | 456 | 456 | — | 456 | — | ||||||||||||||||
Accrued interest payable | 1,780 | 1,780 | 1,780 | — | — | ||||||||||||||||
Off-balance-sheet items: | |||||||||||||||||||||
Standby letters of credit | 135 | 135 | — | — | 135 | ||||||||||||||||
Commitments to extend credit | — | * | * | * | * | ||||||||||||||||
*Not meaningful | |||||||||||||||||||||
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 | |||||||||||||||||||||
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 September 30, 2014 and December 31, 2013, the Corporation held $10.1 million and $11.0 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 the purchase price of the instruments 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 September 30, 2014 and December 31, 2013, the Corporation held $5.4 million and $4.0 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. The fair value measurements are subject to independent verification to 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 the 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 considers 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 are not considered in the estimates. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
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 considers the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees. | |||||||||||||
At September 30, 2014, the aggregate amortizing notional value of interest rate swaps with various commercial borrowers was $27.6 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 March, 2016 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 $456,000, included in accrued interest receivable and other assets, and as a derivative liability of $310,000, 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 September 30, 2014, 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 financial position. | |||||||||||||
At September 30, 2014, the aggregate amortizing notional value of interest rate swaps with dealer counterparties was also $27.6 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 March, 2016 through February, 2023. Dealer counterparty swaps are subject to master netting agreements among the contracts within each of the Banks and are reported on the Consolidated Balance Sheets as a net derivative liability of $146,000. The value of these swaps was included in accrued interest payable and other liabilities as of September 30, 2014. The gross amount of dealer counterparty swaps, without regard to the enforceable master netting agreement, was a gross derivative liability of $456,000 and $310,000 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 September 30, 2014 and December 31, 2013. | |||||||||||||
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 | |||||||||||||
September 30, 2014 | Other assets | $ | 456 | Other liabilities | $ | 456 | |||||||
December 31, 2013 | Other assets | $ | 946 | Other liabilities | $ | 946 | |||||||
No derivative instruments held by the Corporation for the nine months ended September 30, 2014 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 nine months ended September 30, 2014 and 2013 had an insignificant impact on the unaudited Consolidated Statements of Income. |
Regulatory_Capital
Regulatory Capital | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | |||||||||||||||||||||
Regulatory Capital | ' | |||||||||||||||||||||
Regulatory Capital | ||||||||||||||||||||||
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 regularly 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 respective capital positions, 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 Board of Governors of the Federal Reserve system (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 September 30, 2014, that the Corporation and the Banks met all applicable capital adequacy requirements. | ||||||||||||||||||||||
As of September 30, 2014, the most recent notification from the Federal Deposit Insurance Corporation and the State of Wisconsin Department of Financial Institutions 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 September 30, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||
Actual | Minimum Required for Capital Adequacy Purposes | Minimum Required to Be Well | ||||||||||||||||||||
Capitalized Under Prompt Corrective Action Requirements | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||
Total capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 164,341 | 13.97 | % | $ | 94,081 | 8 | % | N/A | N/A | ||||||||||||
First Business Bank | 128,629 | 12.3 | 83,672 | 8 | $ | 104,590 | 10 | % | ||||||||||||||
First Business Bank — Milwaukee | 18,879 | 14.58 | 10,360 | 8 | 12,950 | 10 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 127,485 | 10.84 | % | $ | 47,040 | 4 | % | N/A | N/A | ||||||||||||
First Business Bank | 116,289 | 11.12 | 41,836 | 4 | $ | 62,754 | 6 | % | ||||||||||||||
First Business Bank — Milwaukee | 17,289 | 13.35 | 5,180 | 4 | 7,770 | 6 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to average assets) | ||||||||||||||||||||||
Consolidated | $ | 127,485 | 9.56 | % | $ | 53,325 | 4 | % | N/A | N/A | ||||||||||||
First Business Bank | 116,289 | 10.43 | 44,589 | 4 | $ | 55,737 | 5 | % | ||||||||||||||
First Business Bank — Milwaukee | 17,289 | 7.64 | 9,058 | 4 | 11,322 | 5 | ||||||||||||||||
Actual | Minimum Required for Capital Adequacy Purposes | Minimum Required to Be Well | ||||||||||||||||||||
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 | ||||||||||||||||
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation. The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation's Consolidated Financial Statements and footnotes thereto included in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2013. | |
Principles of Consolidation | ' |
The unaudited 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, Policy | ' |
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 significantly change 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, Policy | ' |
Certain amounts in prior periods may have been reclassified to conform to the current presentation. | |
Subsequent Events, Policy | ' |
Subsequent events have been evaluated through the date of the issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements. | |
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 became effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard did not 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. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The ASU is a converged standard between the FASB and the IASB that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The primary objective of the ASU is revenue recognition that represents the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is effective for interim and annual reporting periods beginning after December 15, 2016. 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. | |
In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation-Stock Compensation, to awards with performance conditions that affect vesting. For all entities, ASU 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. While the Corporation does not have any performance-based awards outstanding as of the reporting date, the Corporation’s equity incentive plan does allow for such awards. The Corporation is, therefore, 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. | |
In August 2014, the FASB issued ASU 2014-14, “Receivables - Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.” This ASU will require creditors to derecognize certain foreclosed government-guaranteed mortgage loans and to recognize a separate other receivable that is measured at the amount the creditor expects to recover from the guarantor, and to treat the guarantee and the receivable as a single unit of account. The ASU is effective for interim and annual periods beginning after December 15, 2014. An entity can elect a prospective or a modified retrospective transition method, but must use the same transition method that it elected under FASB ASU No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” 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 operation. | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in the financial statements. The standard provides accounting guidance that will be used along with existing auditing standards. The ASU is effective for interim and annual periods beginning after December 15, 2016. Early application 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 operation. |
Earnings_Per_Common_Share_Poli
Earnings Per Common Share (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share, Policy | ' |
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. |
ShareBased_Compensation_Polici
Share-Based Compensation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-based Compensation, Option and Incentive Plans Policy | ' |
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. | |
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, dividend equivalent units, and any other type of award permitted by the Plan. As of September 30, 2014, 178,877 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 Plan 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 have been granted since the Corporation became a reporting company under the Securities Exchange Act of 1934, as amended, 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 three and nine months ended September 30, 2014 and 2013. As of September 30, 2014, all Stock Options granted and not previously forfeited have vested. The benefits of tax deductions as a result of disqualifying dispositions upon exercise of stock options are recognized as a financing cash flow. |
Loan_and_Lease_Receivables_Imp1
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Receivables [Abstract] | ' |
Loans and Leases Receivable, Allowance for Loan Losses Policy | ' |
To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the 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. |
FHLB_Advances_Other_Borrowings1
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt Instrument, Covenant Compliance | 'As of September 30, 2014, the Corporation was in compliance with its debt covenants under its third party senior line of credit. |
Fair_Value_Disclosures_Policie
Fair Value Disclosures (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments, Policy | ' |
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 supported by little or no market activity and 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. | |
Impaired loans that are collateral dependent were written down to their net realizable value of $6.3 million and $13.7 million at September 30, 2014 and December 31, 2013, 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, and are reflected within Level 2 of the hierarchy. In cases where an input is 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 impaired loan values range from 19% - 100%. The weighted average of those unobservable inputs as of the measurement date of September 30, 2014 was 58%. 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 a current 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 September 30, 2014, there were no foreclosed properties supported by a Level 3 valuation. | |
Foreclosed Assets Policy | ' |
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. | |
Fair Value Measurement, Policy | ' |
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 September 30, 2014 and December 31, 2013, the Corporation held $10.1 million and $11.0 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 the purchase price of the instruments 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 September 30, 2014 and December 31, 2013, the Corporation held $5.4 million and $4.0 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. The fair value measurements are subject to independent verification to 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 the 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 considers 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 are not considered in the estimates. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivatives, Policy | ' |
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 considers the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees. |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Dollars in Thousands, Except Per Share Data) | |||||||||||||||||
Basic earnings per common share | |||||||||||||||||
Net income | $ | 3,553 | $ | 3,609 | $ | 10,395 | $ | 9,986 | |||||||||
Less: earnings allocated to participating securities | 75 | 89 | 222 | 242 | |||||||||||||
Basic earnings allocated to common shareholders | $ | 3,478 | $ | 3,520 | $ | 10,173 | $ | 9,744 | |||||||||
Weighted-average common shares outstanding, excluding participating securities | 3,867,835 | 3,831,227 | 3,862,504 | 3,826,809 | |||||||||||||
Basic earnings per common share | $ | 0.9 | $ | 0.92 | $ | 2.63 | $ | 2.55 | |||||||||
Diluted earnings per common share | |||||||||||||||||
Earnings allocated to common shareholders | $ | 3,478 | $ | 3,520 | $ | 10,173 | $ | 9,744 | |||||||||
Reallocation of undistributed earnings | — | — | 1 | 1 | |||||||||||||
Diluted earnings allocated to common shareholders | $ | 3,478 | $ | 3,520 | $ | 10,174 | $ | 9,745 | |||||||||
Weighted-average common shares outstanding, excluding participating securities | 3,867,835 | 3,831,227 | 3,862,504 | 3,826,809 | |||||||||||||
Dilutive effect of share-based awards | 21,844 | 18,335 | 22,089 | 13,062 | |||||||||||||
Weighted-average diluted common shares outstanding, excluding participating securities | 3,889,679 | 3,849,562 | 3,884,593 | 3,839,871 | |||||||||||||
Diluted earnings per common share | $ | 0.89 | $ | 0.91 | $ | 2.62 | $ | 2.54 | |||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||||||||||
Stock Option activity for the year ended December 31, 2013 and nine months ended September 30, 2014 was as follows: | ||||||||||||||||
Options | Weighted | Weighted | ||||||||||||||
Average | Average | |||||||||||||||
Exercise Price | Remaining | |||||||||||||||
Contractual | ||||||||||||||||
Life (Years) | ||||||||||||||||
Outstanding at December 31, 2012 | 124,034 | $ | 22.43 | 0.75 | ||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (69,684 | ) | 21.13 | |||||||||||||
Expired | (3,350 | ) | 22 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2013 | 51,000 | $ | 24.24 | 0.88 | ||||||||||||
Exercisable at December 31, 2013 | 51,000 | $ | 24.24 | 0.88 | ||||||||||||
Outstanding as of December 31, 2013 | 51,000 | $ | 24.24 | 0.88 | ||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (2,000 | ) | 24 | |||||||||||||
Expired | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding as of September 30, 2014 | 49,000 | $ | 24.24 | 0.13 | ||||||||||||
Exercisable at September 30, 2014 | 49,000 | $ | 24.24 | 0.13 | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||||
Restricted share activity for the year ended December 31, 2013 and the nine months ended September 30, 2014 was as follows: | ||||||||||||||||
Number of | Weighted Average | |||||||||||||||
Restricted Shares | Grant-Date | |||||||||||||||
Fair Value | ||||||||||||||||
Nonvested balance as of December 31, 2012 | 94,506 | $ | 18.19 | |||||||||||||
Granted | 25,030 | 33 | ||||||||||||||
Vested | (34,827 | ) | 16.88 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Nonvested balance as of December 31, 2013 | 84,709 | 23.1 | ||||||||||||||
Granted | 23,386 | 44.34 | ||||||||||||||
Vested | (23,596 | ) | 23.28 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Nonvested balance as of September 30, 2014 | 84,499 | $ | 28.93 | |||||||||||||
Schedule of Share-based Compensation Expense | ' | |||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, share-based compensation expense related to restricted stock included in the Consolidated Statements of Income was as follows: | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Share-based compensation expense | $ | 229 | $ | 173 | $ | 618 | $ | 464 | ||||||||
Securities_Tables
Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Available-for-sale Securities | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrealized | unrealized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 7,250 | $ | — | $ | (79 | ) | $ | 7,171 | ||||||||||||||||
Asset-backed securities | 1,515 | — | (1 | ) | 1,514 | ||||||||||||||||||||
Collateralized mortgage obligations - government issued | 74,535 | 1,686 | (336 | ) | 75,885 | ||||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 57,973 | 166 | (282 | ) | 57,857 | ||||||||||||||||||||
$ | 141,273 | $ | 1,852 | $ | (698 | ) | $ | 142,427 | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrealized | unrealized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
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 | |||||||||||||||||
Schedule of Held-to-maturity Securities | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses were as follows: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Amortized cost | Gross | Gross | Estimated | ||||||||||||||||||||||
unrecognized | unrecognized | fair value | |||||||||||||||||||||||
holding gains | holding losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 1,487 | $ | — | $ | (24 | ) | $ | 1,463 | ||||||||||||||||
Municipal obligations | 16,100 | 16 | (65 | ) | 16,051 | ||||||||||||||||||||
Collateralized mortgage obligations - government issued | 15,145 | 5 | (113 | ) | 15,037 | ||||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 9,790 | — | (129 | ) | 9,661 | ||||||||||||||||||||
$ | 42,522 | $ | 21 | $ | (331 | ) | $ | 42,212 | |||||||||||||||||
Investments Classified by Contractual Maturity | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities by contractual maturity at September 30, 2014 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations without call or prepayment penalties. | |||||||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||||||||
Amortized cost | Estimated | Amortized cost | Estimated | ||||||||||||||||||||||
fair value | fair value | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Due in one year through five years | 7,736 | 7,672 | 2,288 | 2,266 | |||||||||||||||||||||
Due in five through ten years | 59,260 | 59,640 | 13,531 | 13,493 | |||||||||||||||||||||
Due in over ten years | 74,277 | 75,115 | 26,703 | 26,453 | |||||||||||||||||||||
$ | 141,273 | $ | 142,427 | $ | 42,522 | $ | 42,212 | ||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||||||||||||||||||
A summary of unrecognized loss information for securities held-to-maturity, categorized by security type follows: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair value | Unrecognized | Fair value | Unrecognized | Fair value | Unrecognized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 1,487 | $ | 24 | $ | — | $ | — | $ | 1,487 | $ | 24 | |||||||||||||
Municipal obligations | 11,795 | 65 | — | — | 11,795 | 65 | |||||||||||||||||||
Collateralized mortgage obligations - government issued | 11,448 | 113 | — | — | 11,448 | 113 | |||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 9,790 | 129 | — | — | 9,790 | 129 | |||||||||||||||||||
$ | 34,520 | $ | 331 | $ | — | $ | — | $ | 34,520 | $ | 331 | ||||||||||||||
A summary of unrealized loss information for securities available-for-sale, categorized by security type follows: | |||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||
losses | losses | losses | |||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | $ | 2,491 | $ | 9 | $ | 4,680 | $ | 70 | $ | 7,171 | $ | 79 | |||||||||||||
Asset-backed securities | — | — | 1,514 | 1 | 1,514 | 1 | |||||||||||||||||||
Collateralized mortgage obligations - government issued | 8,041 | 44 | 11,404 | 292 | 19,445 | 336 | |||||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | 34,805 | 132 | 5,275 | 150 | 40,080 | 282 | |||||||||||||||||||
$ | 45,337 | $ | 185 | $ | 22,873 | $ | 513 | $ | 68,210 | $ | 698 | ||||||||||||||
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) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
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 | ||||||||||||||
Loan_and_Lease_Receivables_Imp2
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Loan Composition Schedule | ' | ||||||||||||||||||||||||||||
Loan and lease receivables consist of the following: | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 144,017 | $ | 141,164 | |||||||||||||||||||||||||
Commercial real estate — non-owner occupied | 328,730 | 341,695 | |||||||||||||||||||||||||||
Construction and land development | 86,150 | 68,708 | |||||||||||||||||||||||||||
Multi-family | 70,483 | 62,758 | |||||||||||||||||||||||||||
1-4 family | 25,208 | 30,786 | |||||||||||||||||||||||||||
Total commercial real estate | 654,588 | 645,111 | |||||||||||||||||||||||||||
Commercial and industrial | 336,746 | 293,552 | |||||||||||||||||||||||||||
Direct financing leases, net | 34,474 | 26,065 | |||||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Home equity and second mortgages | 4,061 | 5,272 | |||||||||||||||||||||||||||
Other | 12,773 | 11,972 | |||||||||||||||||||||||||||
Total consumer and other | 16,834 | 17,244 | |||||||||||||||||||||||||||
Total gross loans and leases receivable | 1,042,642 | 981,972 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Allowance for loan and lease losses | 13,930 | 13,901 | |||||||||||||||||||||||||||
Deferred loan fees | 826 | 1,021 | |||||||||||||||||||||||||||
Loans and leases receivable, net | $ | 1,027,886 | $ | 967,050 | |||||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
Category | |||||||||||||||||||||||||||||
As of September 30, 2014 | I | II | III | IV | Total | ||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 118,039 | $ | 12,721 | $ | 12,672 | $ | 585 | $ | 144,017 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 291,908 | 15,732 | 20,816 | 274 | 328,730 | ||||||||||||||||||||||||
Construction and land development | 72,312 | 2,423 | 6,357 | 5,058 | 86,150 | ||||||||||||||||||||||||
Multi-family | 69,708 | 755 | — | 20 | 70,483 | ||||||||||||||||||||||||
1-4 family | 16,905 | 4,819 | 2,904 | 580 | 25,208 | ||||||||||||||||||||||||
Total commercial real estate | 568,872 | 36,450 | 42,749 | 6,517 | 654,588 | ||||||||||||||||||||||||
Commercial and industrial (1) | 311,274 | 13,195 | 3,497 | 8,780 | 336,746 | ||||||||||||||||||||||||
Direct financing leases, net | 32,507 | 1,652 | 315 | — | 34,474 | ||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 3,562 | 20 | 146 | 333 | 4,061 | ||||||||||||||||||||||||
Other | 12,008 | 2 | — | 763 | 12,773 | ||||||||||||||||||||||||
Total consumer and other | 15,570 | 22 | 146 | 1,096 | 16,834 | ||||||||||||||||||||||||
Total gross loans and leases receivable | $ | 928,223 | $ | 51,319 | $ | 46,707 | $ | 16,393 | $ | 1,042,642 | |||||||||||||||||||
Category as a % of total portfolio | 89.03 | % | 4.92 | % | 4.48 | % | 1.57 | % | 100 | % | |||||||||||||||||||
(1) Subsequent to September 30, 2014, $6.2 million of principal for one loan in Category IV was paid in full. | |||||||||||||||||||||||||||||
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 | % | |||||||||||||||||||
Past Due Financing Receivables | ' | ||||||||||||||||||||||||||||
The delinquency aging of the loan and lease portfolio by class of receivable as of September 30, 2014 and December 31, 2013 is as follows: | |||||||||||||||||||||||||||||
As of September 30, 2014 | 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 | $ | — | $ | — | $ | — | $ | — | $ | 143,510 | $ | 143,510 | |||||||||||||||||
Non-owner occupied | — | — | — | — | 328,456 | 328,456 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 81,124 | 81,124 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 70,463 | 70,463 | |||||||||||||||||||||||
1-4 family | — | — | — | — | 24,842 | 24,842 | |||||||||||||||||||||||
Commercial and industrial | — | — | — | — | 327,997 | 327,997 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 34,474 | 34,474 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | — | — | 3,929 | 3,929 | |||||||||||||||||||||||
Other | — | — | — | — | 12,010 | 12,010 | |||||||||||||||||||||||
Total | — | — | — | — | 1,026,805 | 1,026,805 | |||||||||||||||||||||||
Non-accruing loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | — | $ | — | $ | 507 | $ | 507 | |||||||||||||||||
Non-owner occupied | — | — | 219 | 219 | 55 | 274 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 5,026 | 5,026 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 20 | 20 | |||||||||||||||||||||||
1-4 family | 168 | — | 107 | 275 | 91 | 366 | |||||||||||||||||||||||
Commercial and industrial | — | — | 6,375 | 6,375 | 2,374 | 8,749 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 56 | — | — | 56 | 76 | 132 | |||||||||||||||||||||||
Other | — | — | 763 | 763 | — | 763 | |||||||||||||||||||||||
Total | 224 | — | 7,464 | 7,688 | 8,149 | 15,837 | |||||||||||||||||||||||
Total loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | — | $ | — | $ | — | $ | — | $ | 144,017 | $ | 144,017 | |||||||||||||||||
Non-owner occupied | — | — | 219 | 219 | 328,511 | 328,730 | |||||||||||||||||||||||
Construction and land development | — | — | — | — | 86,150 | 86,150 | |||||||||||||||||||||||
Multi-family | — | — | — | — | 70,483 | 70,483 | |||||||||||||||||||||||
1-4 family | 168 | — | 107 | 275 | 24,933 | 25,208 | |||||||||||||||||||||||
Commercial and industrial (1) | — | — | 6,375 | 6,375 | 330,371 | 336,746 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | 34,474 | 34,474 | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 56 | — | — | 56 | 4,005 | 4,061 | |||||||||||||||||||||||
Other | — | — | 763 | 763 | 12,010 | 12,773 | |||||||||||||||||||||||
Total | $ | 224 | $ | — | $ | 7,464 | $ | 7,688 | $ | 1,034,954 | $ | 1,042,642 | |||||||||||||||||
Percent of portfolio | 0.02 | % | — | % | 0.72 | % | 0.74 | % | 99.26 | % | 100 | % | |||||||||||||||||
(1) Subsequent to September 30, 2014, $6.2 million of principal for one loan in the greater than 90 days past due category was paid in full. | |||||||||||||||||||||||||||||
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 and 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 and 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 and 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 | % | |||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status | ' | ||||||||||||||||||||||||||||
The Corporation’s total impaired assets consisted of the following at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Non-accrual loans and leases | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate — owner occupied | $ | 507 | $ | 339 | |||||||||||||||||||||||||
Commercial real estate — non-owner occupied | 274 | 283 | |||||||||||||||||||||||||||
Construction and land development | 5,026 | 5,422 | |||||||||||||||||||||||||||
Multi-family | 20 | 31 | |||||||||||||||||||||||||||
1-4 family | 366 | 521 | |||||||||||||||||||||||||||
Total non-accrual commercial real estate | 6,193 | 6,596 | |||||||||||||||||||||||||||
Commercial and industrial | 8,749 | 8,011 | |||||||||||||||||||||||||||
Direct financing leases, net | — | — | |||||||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 132 | 453 | |||||||||||||||||||||||||||
Other | 763 | 795 | |||||||||||||||||||||||||||
Total non-accrual consumer and other loans | 895 | 1,248 | |||||||||||||||||||||||||||
Total non-accrual loans and leases | 15,837 | 15,855 | |||||||||||||||||||||||||||
Foreclosed properties, net | 106 | 333 | |||||||||||||||||||||||||||
Total non-performing assets | 15,943 | 16,188 | |||||||||||||||||||||||||||
Performing troubled debt restructurings | 556 | 371 | |||||||||||||||||||||||||||
Total impaired assets | $ | 16,499 | $ | 16,559 | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Total non-accrual loans and leases to gross loans and leases | 1.52 | % | 1.61 | % | |||||||||||||||||||||||||
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 1.53 | 1.65 | |||||||||||||||||||||||||||
Total non-performing assets to total assets | 1.12 | 1.28 | |||||||||||||||||||||||||||
Allowance for loan and lease losses to gross loans and leases | 1.34 | 1.42 | |||||||||||||||||||||||||||
Allowance for loan and lease losses to non-accrual loans and leases | 87.96 | 87.68 | |||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | ||||||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||
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 | 2 | $ | 624 | $ | 585 | 1 | $ | 110 | $ | 84 | |||||||||||||||||||
Commercial real estate — non-owner occupied | 4 | 390 | 274 | 3 | 385 | 283 | |||||||||||||||||||||||
Construction and land development | 3 | 6,060 | 5,058 | 3 | 6,060 | 5,489 | |||||||||||||||||||||||
Multi-family | 1 | 184 | 20 | 1 | 184 | 31 | |||||||||||||||||||||||
1-4 family | 9 | 861 | 579 | 10 | 911 | 666 | |||||||||||||||||||||||
Commercial and industrial | 4 | 361 | 170 | 5 | 1,935 | 565 | |||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 5 | 602 | 333 | 6 | 752 | 580 | |||||||||||||||||||||||
Other | 1 | 2,077 | 763 | 1 | 2,076 | 795 | |||||||||||||||||||||||
Total | 29 | $ | 11,159 | $ | 7,782 | 30 | $ | 12,413 | $ | 8,493 | |||||||||||||||||||
Troubled Debt Restructurings by Modification Type | ' | ||||||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, the Corporation’s troubled debt restructurings grouped by type of concession were as follows: | |||||||||||||||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||
Number | Recorded Investment | Number | Recorded Investment | ||||||||||||||||||||||||||
of | of | ||||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Extension of term | 1 | $ | 43 | 1 | $ | 55 | |||||||||||||||||||||||
Combination of extension and interest rate concession | 18 | 6,473 | 17 | 6,498 | |||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Extension of term | — | — | 1 | 49 | |||||||||||||||||||||||||
Combination of extension and interest rate concession | 4 | 170 | 4 | 516 | |||||||||||||||||||||||||
Consumer and other | |||||||||||||||||||||||||||||
Extension of term | 1 | 763 | 2 | 880 | |||||||||||||||||||||||||
Combination of extension and interest rate concession | 5 | 333 | 5 | 495 | |||||||||||||||||||||||||
Total | 29 | $ | 7,782 | 30 | $ | 8,493 | |||||||||||||||||||||||
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 Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||
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 | $ | 78 | $ | 78 | $ | — | $ | 164 | $ | 9 | $ | 79 | $ | (70 | ) | ||||||||||||||
Non-owner occupied | 224 | 224 | — | 226 | 8 | — | 8 | ||||||||||||||||||||||
Construction and land development | 5,058 | 7,729 | — | 5,344 | 118 | — | 118 | ||||||||||||||||||||||
Multi-family | 20 | 387 | — | 26 | 40 | — | 40 | ||||||||||||||||||||||
1-4 family | 181 | 181 | — | 222 | 7 | 12 | (5 | ) | |||||||||||||||||||||
Commercial and industrial | 8,746 | 8,757 | — | 6,833 | 360 | 220 | 140 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 277 | 277 | — | 509 | 15 | — | 15 | ||||||||||||||||||||||
Other | 763 | 1,429 | — | 776 | 65 | — | 65 | ||||||||||||||||||||||
Total | 15,347 | 19,062 | — | 14,100 | 622 | 311 | 311 | ||||||||||||||||||||||
With impairment reserve recorded: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 507 | $ | 507 | $ | 106 | $ | 286 | $ | 15 | $ | — | $ | 15 | |||||||||||||||
Non-owner occupied | 50 | 90 | 50 | 52 | 3 | — | 3 | ||||||||||||||||||||||
Construction and land development | — | — | — | — | — | — | — | ||||||||||||||||||||||
Multi-family | — | — | — | — | — | — | — | ||||||||||||||||||||||
1-4 family | 399 | 399 | 165 | 409 | 13 | — | 13 | ||||||||||||||||||||||
Commercial and industrial | 34 | 34 | 34 | 35 | — | — | — | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 56 | 56 | 56 | 58 | 4 | — | 4 | ||||||||||||||||||||||
Other | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 1,046 | 1,086 | 411 | 840 | 35 | — | 35 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner occupied | $ | 585 | $ | 585 | $ | 106 | $ | 450 | $ | 24 | $ | 79 | $ | (55 | ) | ||||||||||||||
Non-owner occupied | 274 | 314 | 50 | 278 | 11 | — | 11 | ||||||||||||||||||||||
Construction and land development | 5,058 | 7,729 | — | 5,344 | 118 | — | 118 | ||||||||||||||||||||||
Multi-family | 20 | 387 | — | 26 | 40 | — | 40 | ||||||||||||||||||||||
1-4 family | 580 | 580 | 165 | 631 | 20 | 12 | 8 | ||||||||||||||||||||||
Commercial and industrial | 8,780 | 8,791 | 34 | 6,868 | 360 | 220 | 140 | ||||||||||||||||||||||
Direct financing leases, net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Consumer and other: | |||||||||||||||||||||||||||||
Home equity and second mortgages | 333 | 333 | 56 | 567 | 19 | — | 19 | ||||||||||||||||||||||
Other | 763 | 1,429 | — | 776 | 65 | — | 65 | ||||||||||||||||||||||
Grand total | $ | 16,393 | $ | 20,148 | $ | 411 | $ | 14,940 | $ | 657 | $ | 311 | $ | 346 | |||||||||||||||
-1 | Average recorded investment is calculated primarily using daily average balances. | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
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 Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Direct | Total | |||||||||||||||||||||||||
real estate | and | and other | financing | ||||||||||||||||||||||||||
industrial | leases, net | ||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 9,055 | $ | 4,235 | $ | 273 | $ | 338 | $ | 13,901 | |||||||||||||||||||
Charge-offs | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||
Recoveries | 20 | 1 | 10 | — | 31 | ||||||||||||||||||||||||
Provision | (387 | ) | 334 | (30 | ) | 83 | — | ||||||||||||||||||||||
Ending balance | $ | 8,688 | $ | 4,570 | $ | 251 | $ | 421 | $ | 13,930 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 321 | $ | 34 | $ | 56 | $ | — | $ | 411 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,367 | $ | 4,536 | $ | 195 | $ | 421 | $ | 13,519 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Loans and lease receivables: | |||||||||||||||||||||||||||||
Ending balance, gross | $ | 654,588 | $ | 336,746 | $ | 16,834 | $ | 34,474 | $ | 1,042,642 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 5,198 | $ | 8,780 | $ | 1,096 | $ | — | $ | 15,074 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 648,071 | $ | 327,966 | $ | 15,738 | $ | 34,474 | $ | 1,026,249 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 1,319 | $ | — | $ | — | $ | — | $ | 1,319 | |||||||||||||||||||
Allowance as % of gross loans | 1.33 | % | 1.36 | % | 1.49 | % | 1.22 | % | 1.34 | % | |||||||||||||||||||
As of and for the Nine Months Ended September 30, 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 | (776 | ) | (14 | ) | (4 | ) | — | (794 | ) | ||||||||||||||||||||
Recoveries | 323 | 4 | 4 | 5 | 336 | ||||||||||||||||||||||||
Provision | 80 | 121 | (54 | ) | 96 | 243 | |||||||||||||||||||||||
Ending balance | $ | 10,320 | $ | 4,240 | $ | 317 | $ | 308 | $ | 15,185 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 631 | $ | 36 | $ | 63 | $ | — | $ | 730 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 9,689 | $ | 4,204 | $ | 254 | $ | 308 | $ | 14,455 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Loans and lease receivables: | |||||||||||||||||||||||||||||
Ending balance, gross | $ | 641,349 | $ | 276,094 | $ | 15,596 | $ | 24,359 | $ | 957,398 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 6,947 | $ | 654 | $ | 1,378 | $ | — | $ | 8,979 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 632,936 | $ | 275,440 | $ | 14,218 | $ | 24,359 | $ | 946,953 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 1,466 | $ | — | $ | — | $ | — | $ | 1,466 | |||||||||||||||||||
Allowance as % of gross loans | 1.61 | % | 1.54 | % | 2.03 | % | 1.26 | % | 1.59 | % | |||||||||||||||||||
Deposits_Tables
Deposits (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Deposits [Abstract] | ' | ||||||||||||||||||||||
Deposits | ' | ||||||||||||||||||||||
The composition of deposits at September 30, 2014 and December 31, 2013 was as follows. Weighted average balances represent year-to-date averages. | |||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Balance | Weighted | Weighted | Balance | Weighted | Weighted | ||||||||||||||||||
average | average rate | average | average rate | ||||||||||||||||||||
balance | balance | ||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Non-interest-bearing transaction accounts | $ | 165,980 | $ | 142,302 | — | % | $ | 151,275 | $ | 138,920 | — | % | |||||||||||
Interest-bearing transaction accounts | 88,478 | 81,039 | 0.23 | 77,004 | 62,578 | 0.2 | |||||||||||||||||
Money market accounts | 560,965 | 465,708 | 0.51 | 456,065 | 450,558 | 0.53 | |||||||||||||||||
Certificates of deposit | 43,691 | 47,536 | 0.98 | 51,979 | 60,276 | 1.01 | |||||||||||||||||
Brokered certificates of deposit | 410,086 | 410,757 | 1.51 | 393,532 | 393,726 | 1.68 | |||||||||||||||||
Total deposits | $ | 1,269,200 | $ | 1,147,342 | 0.8 | $ | 1,129,855 | $ | 1,106,058 | 0.88 | |||||||||||||
FHLB_Advances_Other_Borrowings2
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||
Schedule of Debt | ' | ||||||||||||||||||||||
The composition of borrowed funds at September 30, 2014 and December 31, 2013 was as follows. Weighted average balances represent year-to-date averages. | |||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Balance | Weighted | Weighted | Balance | Weighted | Weighted | ||||||||||||||||||
average | average | average | average | ||||||||||||||||||||
balance | rate | balance | rate | ||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Federal funds purchased | $ | — | $ | 148 | 0.81 | % | $ | — | $ | 260 | 0.74 | % | |||||||||||
FHLB advances | — | 4,604 | 0.16 | — | 6,471 | 0.19 | |||||||||||||||||
Line of credit | 10 | 10 | 3.29 | 10 | 10 | 3.41 | |||||||||||||||||
Subordinated notes payable | 22,926 | 10,139 | 7.16 | 11,926 | 11,926 | 6.92 | |||||||||||||||||
Junior subordinated notes | 10,315 | 10,315 | 10.76 | 10,315 | 10,315 | 10.78 | |||||||||||||||||
$ | 33,251 | $ | 25,216 | 7.36 | $ | 22,251 | $ | 28,982 | 6.78 | ||||||||||||||
Short-term borrowings | $ | 10 | $ | 10 | |||||||||||||||||||
Long-term borrowings | 33,241 | 22,241 | |||||||||||||||||||||
$ | 33,251 | $ | 22,251 | ||||||||||||||||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
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 | |||||||||||||||||||||
September 30, 2014 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||
Asset backed securities | $ | — | $ | 1,514 | $ | — | $ | 1,514 | |||||||||||||
U.S. Government agency obligations - government-sponsored enterprises | — | 7,171 | — | 7,171 | |||||||||||||||||
Collateralized mortgage obligations - government issued | — | 75,885 | — | 75,885 | |||||||||||||||||
Collateralized mortgage obligations - government-sponsored enterprises | — | 57,857 | — | 57,857 | |||||||||||||||||
Interest rate swaps | — | 456 | — | 456 | |||||||||||||||||
Liabilities: | — | ||||||||||||||||||||
Interest rate swaps | $ | — | $ | 456 | $ | — | $ | 456 | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||
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, 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 Nine Months Ended September 30, 2014 | |||||||||||||||||||||
Balance at | Fair Value Measurements Using | Total | |||||||||||||||||||
Gains | |||||||||||||||||||||
September 30, | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
2014 | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Impaired loans | $ | 6,301 | $ | — | $ | 6,252 | $ | 49 | $ | — | |||||||||||
Foreclosed properties | 106 | — | 106 | — | (4 | ) | |||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at | Fair Value Measurements Using | Total | |||||||||||||||||||
Gains | |||||||||||||||||||||
December 31, | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
2013 | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Impaired loans | $ | 13,719 | $ | — | $ | 13,666 | $ | 53 | $ | — | |||||||||||
Foreclosed properties | 333 | — | 333 | — | (59 | ) | |||||||||||||||
Foreclosed Properties | ' | ||||||||||||||||||||
The activity of the Corporation’s foreclosed properties is summarized as follows: | |||||||||||||||||||||
As of and for the Nine Months Ended September 30, 2014 | As of and for the Year Ended December 31, 2013 | ||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Foreclosed properties at the beginning of the period | $ | 333 | $ | 1,574 | |||||||||||||||||
Loans transferred to foreclosed properties, at lower of cost or fair value | — | 1,381 | |||||||||||||||||||
Proceeds from sale of foreclosed properties | (232 | ) | (2,739 | ) | |||||||||||||||||
Net gain on sale of foreclosed properties | 9 | 176 | |||||||||||||||||||
Impairment valuation | (4 | ) | (59 | ) | |||||||||||||||||
Foreclosed properties at the end of the period | $ | 106 | $ | 333 | |||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||||||
Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 174,498 | $ | 174,502 | $ | 159,008 | $ | 5,394 | $ | 10,100 | |||||||||||
Securities available-for-sale | 142,427 | 142,427 | — | 142,427 | — | ||||||||||||||||
Securities held-to-maturity | 42,522 | 42,212 | — | 42,212 | — | ||||||||||||||||
Loans and lease receivables, net | 1,027,886 | 1,024,896 | — | 6,252 | 1,018,644 | ||||||||||||||||
Federal Home Loan Bank stock | 1,349 | 1,349 | — | — | 1,349 | ||||||||||||||||
Cash surrender value of life insurance | 23,772 | 23,772 | 23,772 | — | — | ||||||||||||||||
Accrued interest receivable | 3,164 | 3,164 | 3,164 | — | — | ||||||||||||||||
Interest rate swaps | 456 | 456 | — | 456 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 1,269,200 | $ | 1,270,993 | $ | 815,422 | $ | 455,571 | $ | — | |||||||||||
Federal Home Loan Bank and other borrowings | 22,936 | 22,865 | — | 22,865 | — | ||||||||||||||||
Junior subordinated notes | 10,315 | 7,098 | — | — | 7,098 | ||||||||||||||||
Interest rate swaps | 456 | 456 | — | 456 | — | ||||||||||||||||
Accrued interest payable | 1,780 | 1,780 | 1,780 | — | — | ||||||||||||||||
Off-balance-sheet items: | |||||||||||||||||||||
Standby letters of credit | 135 | 135 | — | — | 135 | ||||||||||||||||
Commitments to extend credit | — | * | * | * | * | ||||||||||||||||
*Not meaningful | |||||||||||||||||||||
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 | — | * | * | * | * | ||||||||||||||||
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||
The table below provides information about the location and fair value of the Corporation’s derivative instruments as of September 30, 2014 and December 31, 2013. | |||||||||||||
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 | |||||||||||||
September 30, 2014 | Other assets | $ | 456 | Other liabilities | $ | 456 | |||||||
December 31, 2013 | Other assets | $ | 946 | Other liabilities | $ | 946 | |||||||
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||
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 September 30, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||
Actual | Minimum Required for Capital Adequacy Purposes | Minimum Required to Be Well | ||||||||||||||||||||
Capitalized Under Prompt Corrective Action Requirements | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||
Total capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 164,341 | 13.97 | % | $ | 94,081 | 8 | % | N/A | N/A | ||||||||||||
First Business Bank | 128,629 | 12.3 | 83,672 | 8 | $ | 104,590 | 10 | % | ||||||||||||||
First Business Bank — Milwaukee | 18,879 | 14.58 | 10,360 | 8 | 12,950 | 10 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to risk-weighted assets) | ||||||||||||||||||||||
Consolidated | $ | 127,485 | 10.84 | % | $ | 47,040 | 4 | % | N/A | N/A | ||||||||||||
First Business Bank | 116,289 | 11.12 | 41,836 | 4 | $ | 62,754 | 6 | % | ||||||||||||||
First Business Bank — Milwaukee | 17,289 | 13.35 | 5,180 | 4 | 7,770 | 6 | ||||||||||||||||
Tier 1 capital | ||||||||||||||||||||||
(to average assets) | ||||||||||||||||||||||
Consolidated | $ | 127,485 | 9.56 | % | $ | 53,325 | 4 | % | N/A | N/A | ||||||||||||
First Business Bank | 116,289 | 10.43 | 44,589 | 4 | $ | 55,737 | 5 | % | ||||||||||||||
First Business Bank — Milwaukee | 17,289 | 7.64 | 9,058 | 4 | 11,322 | 5 | ||||||||||||||||
Actual | Minimum Required for Capital Adequacy Purposes | Minimum Required to Be Well | ||||||||||||||||||||
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 | ||||||||||||||||
Business_Combinations_Narrativ
Business Combinations (Narrative Disclosures) (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||
Sep. 30, 2014 | 22-May-14 | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | |
Subsequent event | Subsequent event | Business Acquisition, Acquiree, Aslin Group | |||
Subsequent event | |||||
Business Combinations [Abstract] | ' | ' | ' | ' | ' |
Business Combinations, Merger consideration to be paid to target in cash and stock | ' | $30,100,000 | ' | ' | ' |
Business Combinations, Non-recurring merger related transaction costs | $424,000 | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Business Combinations, Total consideration per share received by acquiree | ' | ' | ' | ' | $14,435.59 |
Business Combinations, Cash consideration per share received by acquiree | ' | ' | ' | ' | $6,496.02 |
Business Combinations, Stock consideration per share received by acquiree | ' | ' | ' | ' | $7,939.57 |
Business Combinations, Volume-weighted average stock price | ' | ' | ' | $45.98 | ' |
Business Combinations, Equity interest issued or issuable, number of shares | ' | ' | 360,081 | ' | ' |
Business_Combinations_Narrativ1
Business Combinations (Narrative Disclosures - Subordinated Debt) (Details) (Subordinated notes payable, USD $) | Aug. 26, 2014 |
In Millions, unless otherwise specified | |
Subordinated notes payable | ' |
Debt Instrument [Line Items] | ' |
Subordinated notes payables | $15 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basic earnings per common share | ' | ' | ' | ' |
Net income | $3,553 | $3,609 | $10,395 | $9,986 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 75 | 89 | 222 | 242 |
Basic earnings allocated to common shareholders | 3,478 | 3,520 | 10,173 | 9,744 |
Weighted-average common shares outstanding, excluding participating securities | 3,867,835 | 3,831,227 | 3,862,504 | 3,826,809 |
Basic earnings per common share | $0.90 | $0.92 | $2.63 | $2.55 |
Diluted earnings per common share | ' | ' | ' | ' |
Earnings allocated to common shareholders | 3,478 | 3,520 | 10,173 | 9,744 |
Reallocation of undistributed earnings | 0 | 0 | 1 | 1 |
Diluted earnings allocated to common shareholders | $3,478 | $3,520 | $10,174 | $9,745 |
Weighted-average common shares outstanding, excluding participating securities | 3,867,835 | 3,831,227 | 3,862,504 | 3,826,809 |
Dilutive effect of share-based awards | 21,844 | 18,335 | 22,089 | 13,062 |
Weighted-average diluted common shares outstanding, excluding participating securities | 3,889,679 | 3,849,562 | 3,884,593 | 3,839,871 |
Diluted earnings per common share | $0.89 | $0.91 | $2.62 | $2.54 |
Earnings_Per_Common_Share_Narr
Earnings Per Common Share (Narrative Disclosures) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 366 |
ShareBased_Compensation_Stock_
Share-Based Compensation (Stock Option Activity) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Options | ' | ' | ' |
Outstanding, beginning balance | 51,000 | 124,034 | ' |
Granted | 0 | 0 | ' |
Exercised | -2,000 | -69,684 | ' |
Expired | 0 | -3,350 | ' |
Forfeited | 0 | 0 | ' |
Outstanding, ending balance | 49,000 | 51,000 | 124,034 |
Exercisable | 49,000 | 51,000 | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding, beginning | $24.24 | $22.43 | ' |
Granted | $0 | $0 | ' |
Exercised | $24 | $21.13 | ' |
Expired | $0 | $22 | ' |
Forfeited | $0 | $0 | ' |
Outstanding, ending | $24.24 | $24.24 | $22.43 |
Exercisable | $24.24 | $24.24 | ' |
Weighted Average Remaining Contractual Life (Years) | ' | ' | ' |
Outstanding | '1 month 17 days | '10 months 17 days | '9 months 0 days |
Exercisable | '1 month 17 days | '10 months 17 days | ' |
ShareBased_Compensation_Restri
Share-Based Compensation (Restricted Share Activity) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Number of Restricted Shares | ' | ' |
Nonvested balance, beginning | 84,709 | 94,506 |
Granted | 23,386 | 25,030 |
Vested | -23,596 | -34,827 |
Forfeited | 0 | 0 |
Nonvested balance, ending | 84,499 | 84,709 |
Weighted Average Grant-Date Fair Value | ' | ' |
Nonvested balance, beginning | $23.10 | $18.19 |
Granted | $44.34 | $33 |
Vested | $23.28 | $16.88 |
Forfeited | $0 | $0 |
Nonvested balance, ending | $28.93 | $23.10 |
ShareBased_Compensation_ShareB
Share-Based Compensation (Share-Based Payment Plan Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Share-based compensation | $229 | $173 | $618 | $464 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative Disclosures) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Number of shares available for grant | 178,877 | ' | 178,877 |
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 the consolidated financial statements | $0 | $0 | ' |
Deferred compensation expense yet to be recognized | $2,100,000 | ' | $2,100,000 |
Period of time that deferred compensation expense will be recognized | ' | ' | '2 years 11 months 27 days |
Securities_AvailableforSale_Se
Securities (Available-for-Sale Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | $141,273 | $180,675 |
Gross unrealized holding gains | 1,852 | 2,339 |
Gross unrealized holding losses | -698 | -2,896 |
Estimated fair value | 142,427 | 180,118 |
U.S. Government agency obligations - government-sponsored enterprises | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 7,250 | 16,380 |
Gross unrealized holding gains | 0 | 9 |
Gross unrealized holding losses | -79 | -145 |
Estimated fair value | 7,171 | 16,244 |
Municipal obligations | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | ' | 16,207 |
Gross unrealized holding gains | ' | 35 |
Gross unrealized holding losses | ' | -753 |
Estimated fair value | ' | 15,489 |
Asset-backed securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 1,515 | 1,517 |
Gross unrealized holding gains | 0 | 0 |
Gross unrealized holding losses | -1 | -23 |
Estimated fair value | 1,514 | 1,494 |
Collateralized mortgage obligations - government issued | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 74,535 | 111,010 |
Gross unrealized holding gains | 1,686 | 2,238 |
Gross unrealized holding losses | -336 | -1,279 |
Estimated fair value | 75,885 | 111,969 |
Collateralized mortgage obligations - government-sponsored enterprises | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized cost | 57,973 | 35,561 |
Gross unrealized holding gains | 166 | 57 |
Gross unrealized holding losses | -282 | -696 |
Estimated fair value | $57,857 | $34,922 |
Securities_HeldtoMaturity_Secu
Securities (Held-to-Maturity Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities | ' | ' |
Securities held-to-maturity, at amortized cost | $42,522 | $0 |
Gross unrealized holding gains | 21 | ' |
Gross unrealized holding losses | -331 | ' |
Estimated Fair Value | 42,212 | ' |
U.S. Government agency obligations - government-sponsored enterprises | ' | ' |
Schedule of Held-to-maturity Securities | ' | ' |
Securities held-to-maturity, at amortized cost | 1,487 | ' |
Gross unrealized holding gains | 0 | ' |
Gross unrealized holding losses | -24 | ' |
Estimated Fair Value | 1,463 | ' |
Municipal obligations | ' | ' |
Schedule of Held-to-maturity Securities | ' | ' |
Securities held-to-maturity, at amortized cost | 16,100 | ' |
Gross unrealized holding gains | 16 | ' |
Gross unrealized holding losses | -65 | ' |
Estimated Fair Value | 16,051 | ' |
Collateralized mortgage obligations - government issued | ' | ' |
Schedule of Held-to-maturity Securities | ' | ' |
Securities held-to-maturity, at amortized cost | 15,145 | ' |
Gross unrealized holding gains | 5 | ' |
Gross unrealized holding losses | -113 | ' |
Estimated Fair Value | 15,037 | ' |
Collateralized mortgage obligations - government-sponsored enterprises | ' | ' |
Schedule of Held-to-maturity Securities | ' | ' |
Securities held-to-maturity, at amortized cost | 9,790 | ' |
Gross unrealized holding gains | 0 | ' |
Gross unrealized holding losses | -129 | ' |
Estimated Fair Value | $9,661 | ' |
Securities_Contractual_Maturit
Securities (Contractual Maturity) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-Sale, Amortized Cost | ' | ' |
Due in one year or less | $0 | ' |
Due in one year through five years | 7,736 | ' |
Due in five through ten years | 59,260 | ' |
Due in over ten years | 74,277 | ' |
Amortized cost | 141,273 | 180,675 |
Available-for-Sale, Estimated Fair Value | ' | ' |
Due in one year or less | 0 | ' |
Due in one year through five years | 7,672 | ' |
Due in five through ten years | 59,640 | ' |
Due in over ten years | 75,115 | ' |
Estimated fair value | 142,427 | 180,118 |
Held-to-Maturity, Amortized Cost | ' | ' |
Due in one year or less | 0 | ' |
Due in one year through five years | 2,288 | ' |
Due in five through ten years | 13,531 | ' |
Due in over ten years | 26,703 | ' |
Amortized cost | 42,522 | 0 |
Held-to-Maturity, Estimated Fair Value | ' | ' |
Due in one year or less | 0 | ' |
Due in one year through five years | 2,266 | ' |
Due in five through ten years | 13,493 | ' |
Due in over ten years | 26,453 | ' |
Estimated Fair Value | $42,212 | ' |
Securities_Unrealized_Losses_A
Securities (Unrealized Losses Available for Sale) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value | ' | ' |
Less than 12 months | $45,337 | $78,752 |
12 months or longer | 22,873 | 12,545 |
Total | 68,210 | 91,297 |
Unrealized losses | ' | ' |
Less than 12 months | 185 | 2,321 |
12 months or longer | 513 | 575 |
Total | 698 | 2,896 |
U.S. Government agency obligations - government-sponsored enterprises | ' | ' |
Fair value | ' | ' |
Less than 12 months | 2,491 | 10,608 |
12 months or longer | 4,680 | 0 |
Total | 7,171 | 10,608 |
Unrealized losses | ' | ' |
Less than 12 months | 9 | 145 |
12 months or longer | 70 | 0 |
Total | 79 | 145 |
Municipal obligations | ' | ' |
Fair value | ' | ' |
Less than 12 months | ' | 12,001 |
12 months or longer | ' | 981 |
Total | ' | 12,982 |
Unrealized losses | ' | ' |
Less than 12 months | ' | 650 |
12 months or longer | ' | 103 |
Total | ' | 753 |
Asset-backed securities | ' | ' |
Fair value | ' | ' |
Less than 12 months | 0 | 1,494 |
12 months or longer | 1,514 | 0 |
Total | 1,514 | 1,494 |
Unrealized losses | ' | ' |
Less than 12 months | 0 | 23 |
12 months or longer | 1 | 0 |
Total | 1 | 23 |
Collateralized mortgage obligations - government issued | ' | ' |
Fair value | ' | ' |
Less than 12 months | 8,041 | 34,021 |
12 months or longer | 11,404 | 6,146 |
Total | 19,445 | 40,167 |
Unrealized losses | ' | ' |
Less than 12 months | 44 | 997 |
12 months or longer | 292 | 282 |
Total | 336 | 1,279 |
Collateralized mortgage obligations - government-sponsored enterprises | ' | ' |
Fair value | ' | ' |
Less than 12 months | 34,805 | 20,628 |
12 months or longer | 5,275 | 5,418 |
Total | 40,080 | 26,046 |
Unrealized losses | ' | ' |
Less than 12 months | 132 | 506 |
12 months or longer | 150 | 190 |
Total | $282 | $696 |
Securities_Unrealized_Losses_H
Securities (Unrealized Losses Held-to-Maturity) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Fair Value | ' |
Less than 12 months | $34,520 |
12 months or longer | 0 |
Total | 34,520 |
Unrealized Losses | ' |
Less than 12 months | 331 |
12 months or longer | 0 |
Total | 331 |
U.S. Government agency obligations - government-sponsored enterprises | ' |
Fair Value | ' |
Less than 12 months | 1,487 |
12 months or longer | 0 |
Total | 1,487 |
Unrealized Losses | ' |
Less than 12 months | 24 |
12 months or longer | 0 |
Total | 24 |
Municipal obligations | ' |
Fair Value | ' |
Less than 12 months | 11,795 |
12 months or longer | 0 |
Total | 11,795 |
Unrealized Losses | ' |
Less than 12 months | 65 |
12 months or longer | 0 |
Total | 65 |
Collateralized mortgage obligations - government issued | ' |
Fair Value | ' |
Less than 12 months | 11,448 |
12 months or longer | 0 |
Total | 11,448 |
Unrealized Losses | ' |
Less than 12 months | 113 |
12 months or longer | 0 |
Total | 113 |
Collateralized mortgage obligations - government-sponsored enterprises | ' |
Fair Value | ' |
Less than 12 months | 9,790 |
12 months or longer | 0 |
Total | 9,790 |
Unrealized Losses | ' |
Less than 12 months | 129 |
12 months or longer | 0 |
Total | $129 |
Securities_Narrative_Disclosur
Securities (Narrative Disclosures) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
securities | securities | securities | |||
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 58 | ' | 58 | ' | 131 |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 74 | ' | 74 | ' | ' |
Transfer of securities from available-for-sale to held-to-maturity | ' | ' | $44,587,000 | $0 | ' |
Transfer of Securities from Available-for-Sale to Held-to-Maturity, fair value | ' | ' | 43,700,000 | ' | ' |
Unrealized losses transferred to held-to-maturity | 0 | 0 | 874,000 | 0 | ' |
Gain or Loss Recognized at Time of Transfer of Securities from Available-for-Sale to Held-to-Maturity | 0 | ' | 0 | ' | ' |
Proceeds from sale of available-for-sale securities | 0 | 0 | 0 | 0 | ' |
Available-for-sale securities pledged as collateral | 35,000,000 | ' | 35,000,000 | ' | 42,300,000 |
Securities in an unrealized loss position, twelve months or greater | 24 | ' | 24 | ' | ' |
Other than temporary impairment, Available-for-sale securities | ' | ' | 0 | 0 | ' |
Held-to-Maturity Securities, Securities in Unrealized Loss Positions, Qualitative Disclosures, Number of Positions 12 months or greater | 0 | ' | 0 | ' | ' |
Other than temporary impairment, Held-to-maturity securities | ' | ' | $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 $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Receivables [Abstract] | ' | ' | ' |
Commercial real estate — owner occupied | $144,017 | $141,164 | ' |
Commercial real estate — non-owner occupied | 328,730 | 341,695 | ' |
Construction and land development | 86,150 | 68,708 | ' |
Multi-family | 70,483 | 62,758 | ' |
1-4 family | 25,208 | 30,786 | ' |
Total commercial real estate | 654,588 | 645,111 | ' |
Commercial and industrial | 336,746 | 293,552 | ' |
Direct financing leases, net | 34,474 | 26,065 | ' |
Home equity and second mortgages | 4,061 | 5,272 | ' |
Other | 12,773 | 11,972 | ' |
Total consumer and other | 16,834 | 17,244 | ' |
Total gross loans and leases receivable | 1,042,642 | 981,972 | 957,398 |
Allowance for loan and lease losses | 13,930 | 13,901 | ' |
Deferred loan fees | 826 | 1,021 | ' |
Loans and leases receivable, net | $1,027,886 | $967,050 | ' |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment | ' | ' | ' |
Commercial real estate — owner occupied | $144,017 | $141,164 | ' |
Commercial real estate — non-owner occupied | 328,730 | 341,695 | ' |
Construction and land development | 86,150 | 68,708 | ' |
Multi-family | 70,483 | 62,758 | ' |
1-4 family | 25,208 | 30,786 | ' |
Total commercial real estate | 654,588 | 645,111 | ' |
Commercial and industrial | 336,746 | 293,552 | ' |
Direct financing leases, net | 34,474 | 26,065 | ' |
Home equity and second mortgages | 4,061 | 5,272 | ' |
Other | 12,773 | 11,972 | ' |
Total consumer and other | 16,834 | 17,244 | ' |
Total gross loans and leases receivable | 1,042,642 | 981,972 | 957,398 |
Category as a % of total portfolio | 100.00% | 100.00% | ' |
Category I | ' | ' | ' |
Financing Receivable, Recorded Investment | ' | ' | ' |
Commercial real estate — owner occupied | 118,039 | 118,764 | ' |
Commercial real estate — non-owner occupied | 291,908 | 290,865 | ' |
Construction and land development | 72,312 | 53,493 | ' |
Multi-family | 69,708 | 57,049 | ' |
1-4 family | 16,905 | 19,197 | ' |
Total commercial real estate | 568,872 | 539,368 | ' |
Commercial and industrial | 311,274 | 268,109 | ' |
Direct financing leases, net | 32,507 | 23,171 | ' |
Home equity and second mortgages | 3,562 | 4,408 | ' |
Other | 12,008 | 11,177 | ' |
Total consumer and other | 15,570 | 15,585 | ' |
Total gross loans and leases receivable | 928,223 | 846,233 | ' |
Category as a % of total portfolio | 89.03% | 86.18% | ' |
Category II | ' | ' | ' |
Financing Receivable, Recorded Investment | ' | ' | ' |
Commercial real estate — owner occupied | 12,721 | 11,259 | ' |
Commercial real estate — non-owner occupied | 15,732 | 29,444 | ' |
Construction and land development | 2,423 | 1,972 | ' |
Multi-family | 755 | 5,678 | ' |
1-4 family | 4,819 | 7,611 | ' |
Total commercial real estate | 36,450 | 55,964 | ' |
Commercial and industrial | 13,195 | 11,688 | ' |
Direct financing leases, net | 1,652 | 2,421 | ' |
Home equity and second mortgages | 20 | 134 | ' |
Other | 2 | 0 | ' |
Total consumer and other | 22 | 134 | ' |
Total gross loans and leases receivable | 51,319 | 70,207 | ' |
Category as a % of total portfolio | 4.92% | 7.15% | ' |
Category III | ' | ' | ' |
Financing Receivable, Recorded Investment | ' | ' | ' |
Commercial real estate — owner occupied | 12,672 | 10,802 | ' |
Commercial real estate — non-owner occupied | 20,816 | 21,103 | ' |
Construction and land development | 6,357 | 7,754 | ' |
Multi-family | 0 | 0 | ' |
1-4 family | 2,904 | 3,312 | ' |
Total commercial real estate | 42,749 | 42,971 | ' |
Commercial and industrial | 3,497 | 5,712 | ' |
Direct financing leases, net | 315 | 473 | ' |
Home equity and second mortgages | 146 | 150 | ' |
Other | 0 | 0 | ' |
Total consumer and other | 146 | 150 | ' |
Total gross loans and leases receivable | 46,707 | 49,306 | ' |
Category as a % of total portfolio | 4.48% | 5.02% | ' |
Category IV | ' | ' | ' |
Financing Receivable, Recorded Investment | ' | ' | ' |
Commercial real estate — owner occupied | 585 | 339 | ' |
Commercial real estate — non-owner occupied | 274 | 283 | ' |
Construction and land development | 5,058 | 5,489 | ' |
Multi-family | 20 | 31 | ' |
1-4 family | 580 | 666 | ' |
Total commercial real estate | 6,517 | 6,808 | ' |
Commercial and industrial | 8,780 | 8,043 | ' |
Direct financing leases, net | 0 | 0 | ' |
Home equity and second mortgages | 333 | 580 | ' |
Other | 763 | 795 | ' |
Total consumer and other | 1,096 | 1,375 | ' |
Total gross loans and leases receivable | $16,393 | $16,226 | ' |
Category as a % of total portfolio | 1.57% | 1.65% | ' |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
30-59 days past due | $224 | $1,944 | ' |
60-89 days past due | 0 | 1,587 | ' |
Greater than 90 days past due | 7,464 | 1,310 | ' |
Total past due | 7,688 | 4,841 | ' |
Current | 1,034,954 | 977,131 | ' |
Non-accrual loans and leases | 15,837 | 15,855 | ' |
Total gross loans and leases receivable | 1,042,642 | 981,972 | 957,398 |
30 to 59 days past due, percent of total portfolio | 0.02% | 0.20% | ' |
60 to 89 days past due, percent of total portfolio | 0.00% | 0.16% | ' |
Greater than 90 days past due, percent of portfolio | 0.72% | 0.13% | ' |
Past due, percent of total portfolio | 0.74% | 0.49% | ' |
Current, percent of total portfolio | 99.26% | 99.51% | ' |
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 | 0 | ' |
60-89 days past due | 0 | 0 | ' |
Greater than 90 days past due | 0 | 254 | ' |
Total past due | 0 | 254 | ' |
Current | 144,017 | 140,910 | ' |
Non-accrual loans and leases | 507 | 339 | ' |
Total gross loans and leases receivable | 144,017 | 141,164 | ' |
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 | 219 | 0 | ' |
Total past due | 219 | 0 | ' |
Current | 328,511 | 341,695 | ' |
Non-accrual loans and leases | 274 | 283 | ' |
Total gross loans and leases receivable | 328,730 | 341,695 | ' |
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 | 86,150 | 68,708 | ' |
Non-accrual loans and leases | 5,026 | 5,422 | ' |
Total gross loans and leases receivable | 86,150 | 68,708 | ' |
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 | 70,483 | 62,758 | ' |
Non-accrual loans and leases | 20 | 31 | ' |
Total gross loans and leases receivable | 70,483 | 62,758 | ' |
1-4 family | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
30-59 days past due | 168 | 0 | ' |
60-89 days past due | 0 | 180 | ' |
Greater than 90 days past due | 107 | 123 | ' |
Total past due | 275 | 303 | ' |
Current | 24,933 | 30,483 | ' |
Non-accrual loans and leases | 366 | 521 | ' |
Total gross loans and leases receivable | 25,208 | 30,786 | ' |
Commercial and industrial | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
30-59 days past due | 0 | 1,944 | ' |
60-89 days past due | 0 | 1,407 | ' |
Greater than 90 days past due | 6,375 | 53 | ' |
Total past due | 6,375 | 3,404 | ' |
Current | 330,371 | 290,148 | ' |
Non-accrual loans and leases | 8,749 | 8,011 | ' |
Total gross loans and leases receivable | 336,746 | 293,552 | 276,094 |
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 | 34,474 | 26,065 | ' |
Non-accrual loans and leases | 0 | 0 | ' |
Total gross loans and leases receivable | 34,474 | 26,065 | 24,359 |
Home equity and second mortgages | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
30-59 days past due | 56 | 0 | ' |
60-89 days past due | 0 | 0 | ' |
Greater than 90 days past due | 0 | 85 | ' |
Total past due | 56 | 85 | ' |
Current | 4,005 | 5,187 | ' |
Non-accrual loans and leases | 132 | 453 | ' |
Total gross loans and leases receivable | 4,061 | 5,272 | ' |
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 | 763 | 795 | ' |
Total past due | 763 | 795 | ' |
Current | 12,010 | 11,177 | ' |
Non-accrual loans and leases | 763 | 795 | ' |
Total gross loans and leases receivable | 12,773 | 11,972 | ' |
Accruing loans and leases | ' | ' | ' |
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 | 1,026,805 | 966,117 | ' |
Accrual loans and leases | 1,026,805 | 966,117 | ' |
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 | 0 | 0 | ' |
Total past due | 0 | 0 | ' |
Current | 143,510 | 140,825 | ' |
Accrual loans and leases | 143,510 | 140,825 | ' |
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 | 328,456 | 341,412 | ' |
Accrual loans and leases | 328,456 | 341,412 | ' |
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 | 81,124 | 63,286 | ' |
Accrual loans and leases | 81,124 | 63,286 | ' |
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 | 70,463 | 62,727 | ' |
Accrual loans and leases | 70,463 | 62,727 | ' |
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 | 24,842 | 30,265 | ' |
Accrual loans and leases | 24,842 | 30,265 | ' |
Accruing loans and leases | Commercial and 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 | 327,997 | 285,541 | ' |
Accrual loans and leases | 327,997 | 285,541 | ' |
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 | 34,474 | 26,065 | ' |
Accrual loans and leases | 34,474 | 26,065 | ' |
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 | 3,929 | 4,819 | ' |
Accrual loans and leases | 3,929 | 4,819 | ' |
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 | 12,010 | 11,177 | ' |
Accrual loans and leases | 12,010 | 11,177 | ' |
Non-accruing loans and leases | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
30-59 days past due | 224 | 1,944 | ' |
60-89 days past due | 0 | 1,587 | ' |
Greater than 90 days past due | 7,464 | 1,310 | ' |
Total past due | 7,688 | 4,841 | ' |
Current | 8,149 | 11,014 | ' |
Non-accrual loans and leases | 15,837 | 15,855 | ' |
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 | 0 | 254 | ' |
Total past due | 0 | 254 | ' |
Current | 507 | 85 | ' |
Non-accrual loans and leases | 507 | 339 | ' |
Non-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 | 219 | 0 | ' |
Total past due | 219 | 0 | ' |
Current | 55 | 283 | ' |
Non-accrual loans and leases | 274 | 283 | ' |
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 | 0 | ' |
Total past due | 0 | 0 | ' |
Current | 5,026 | 5,422 | ' |
Non-accrual loans and leases | 5,026 | 5,422 | ' |
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 | 20 | 31 | ' |
Non-accrual loans and leases | 20 | 31 | ' |
Non-accruing loans and leases | 1-4 family | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
30-59 days past due | 168 | 0 | ' |
60-89 days past due | 0 | 180 | ' |
Greater than 90 days past due | 107 | 123 | ' |
Total past due | 275 | 303 | ' |
Current | 91 | 218 | ' |
Non-accrual loans and leases | 366 | 521 | ' |
Non-accruing loans and leases | Commercial and industrial | ' | ' | ' |
Financing Receivable, Recorded Investment, Aging [Abstract] | ' | ' | ' |
30-59 days past due | 0 | 1,944 | ' |
60-89 days past due | 0 | 1,407 | ' |
Greater than 90 days past due | 6,375 | 53 | ' |
Total past due | 6,375 | 3,404 | ' |
Current | 2,374 | 4,607 | ' |
Non-accrual loans and leases | 8,749 | 8,011 | ' |
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-accrual 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 | 56 | 0 | ' |
60-89 days past due | 0 | 0 | ' |
Greater than 90 days past due | 0 | 85 | ' |
Total past due | 56 | 85 | ' |
Current | 76 | 368 | ' |
Non-accrual loans and leases | 132 | 453 | ' |
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 | 763 | 795 | ' |
Total past due | 763 | 795 | ' |
Current | 0 | 0 | ' |
Non-accrual loans and leases | $763 | $795 | ' |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | $15,837 | $15,855 | ' | ' |
Foreclosed properties, net | 106 | 333 | ' | 1,574 |
Total non-performing assets | 15,943 | 16,188 | ' | ' |
Performing troubled debt restructurings | 556 | 371 | ' | ' |
Total impaired assets | 16,499 | 16,559 | ' | ' |
Total non-accrual loans and leases to gross loans and leases | 1.52% | 1.61% | ' | ' |
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 1.53% | 1.65% | ' | ' |
Total non-performing assets to total assets | 1.12% | 1.28% | ' | ' |
Allowance for loan and lease losses to gross loans and leases | 1.34% | 1.42% | 1.59% | ' |
Allowance for loan and lease losses to non-accrual loans and leases | 87.96% | 87.68% | ' | ' |
Commercial real estate — owner occupied | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 507 | 339 | ' | ' |
Commercial real estate — non-owner occupied | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 274 | 283 | ' | ' |
Construction and land development | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 5,026 | 5,422 | ' | ' |
Multi-family | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 20 | 31 | ' | ' |
1-4 family | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 366 | 521 | ' | ' |
Total non-accrual commercial real estate | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 6,193 | 6,596 | ' | ' |
Allowance for loan and lease losses to gross loans and leases | 1.33% | ' | 1.61% | ' |
Commercial and industrial | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 8,749 | 8,011 | ' | ' |
Allowance for loan and lease losses to gross loans and leases | 1.36% | ' | 1.54% | ' |
Direct financing leases, net | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 0 | 0 | ' | ' |
Allowance for loan and lease losses to gross loans and leases | 1.22% | ' | 1.26% | ' |
Home equity and second mortgages | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 132 | 453 | ' | ' |
Other | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | 763 | 795 | ' | ' |
Total non-accrual consumer and other loans | ' | ' | ' | ' |
Financing Receivable, Impaired | ' | ' | ' | ' |
Non-accrual loans and leases | $895 | $1,248 | ' | ' |
Allowance for loan and lease losses to gross loans and leases | 1.49% | ' | 2.03% | ' |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | loans | loans |
Troubled debt restructurings | ' | ' |
Number of Loans | 29 | 30 |
Pre-Modification Recorded Investment | $11,159 | $12,413 |
Post-Modification Recorded Investment | 7,782 | 8,493 |
Commercial real estate — owner occupied | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 2 | 1 |
Pre-Modification Recorded Investment | 624 | 110 |
Post-Modification Recorded Investment | 585 | 84 |
Commercial real estate — non-owner occupied | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 4 | 3 |
Pre-Modification Recorded Investment | 390 | 385 |
Post-Modification Recorded Investment | 274 | 283 |
Construction and land development | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 3 | 3 |
Pre-Modification Recorded Investment | 6,060 | 6,060 |
Post-Modification Recorded Investment | 5,058 | 5,489 |
Multi-family | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 1 | 1 |
Pre-Modification Recorded Investment | 184 | 184 |
Post-Modification Recorded Investment | 20 | 31 |
1-4 family | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 9 | 10 |
Pre-Modification Recorded Investment | 861 | 911 |
Post-Modification Recorded Investment | 579 | 666 |
Commercial and industrial | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 4 | 5 |
Pre-Modification Recorded Investment | 361 | 1,935 |
Post-Modification Recorded Investment | 170 | 565 |
Direct financing leases, net | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 0 | 0 |
Pre-Modification Recorded Investment | 0 | 0 |
Post-Modification Recorded Investment | 0 | 0 |
Home equity and second mortgages | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 5 | 6 |
Pre-Modification Recorded Investment | 602 | 752 |
Post-Modification Recorded Investment | 333 | 580 |
Other | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 1 | 1 |
Pre-Modification Recorded Investment | 2,077 | 2,076 |
Post-Modification Recorded Investment | $763 | $795 |
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 $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | loans | loans |
Troubled debt restructurings | ' | ' |
Number of Loans | 29 | 30 |
Recorded Investment | $7,782 | $8,493 |
Commercial real estate | Extension of term | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 1 | 1 |
Recorded Investment | 43 | 55 |
Commercial real estate | Combination of extension and interest rate concession | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 18 | 17 |
Recorded Investment | 6,473 | 6,498 |
Commercial and industrial | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 4 | 5 |
Recorded Investment | 170 | 565 |
Commercial and industrial | Extension of term | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 0 | 1 |
Recorded Investment | 0 | 49 |
Commercial and industrial | Combination of extension and interest rate concession | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 4 | 4 |
Recorded Investment | 170 | 516 |
Consumer and other | Extension of term | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 1 | 2 |
Recorded Investment | 763 | 880 |
Consumer and other | Combination of extension and interest rate concession | ' | ' |
Troubled debt restructurings | ' | ' |
Number of Loans | 5 | 5 |
Recorded Investment | $333 | $495 |
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 $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | $15,347 | $8,200 | ||
With impairment reserve recorded | 1,046 | 8,026 | ||
Total | 16,393 | 16,226 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 19,062 | 12,115 | ||
With impairment reserve recorded | 1,086 | 8,066 | ||
Total | 20,148 | 20,181 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 411 | 402 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 14,100 | [1] | 10,824 | [1] |
With impairment reserve recorded | 840 | [1] | 1,260 | [1] |
Total | 14,940 | [1] | 12,084 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 622 | 816 | ||
With impairment reserve recorded | 35 | 71 | ||
Foregone interest income | 657 | 887 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 311 | 221 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 311 | 221 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | 311 | 595 | ||
With impairment reserve recorded | 35 | 71 | ||
Total | 346 | 666 | ||
Commercial real estate — owner occupied | ' | ' | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | 78 | 339 | ||
With impairment reserve recorded | 507 | 0 | ||
Total | 585 | 339 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 78 | 339 | ||
With impairment reserve recorded | 507 | 0 | ||
Total | 585 | 339 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 106 | 0 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 164 | [1] | 715 | [1] |
With impairment reserve recorded | 286 | [1] | 0 | [1] |
Total | 450 | [1] | 715 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 9 | 57 | ||
With impairment reserve recorded | 15 | 0 | ||
Foregone interest income | 24 | 57 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 79 | 50 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 79 | 50 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | -70 | 7 | ||
With impairment reserve recorded | 15 | 0 | ||
Total | -55 | 7 | ||
Commercial real estate — non-owner occupied | ' | ' | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | 224 | 229 | ||
With impairment reserve recorded | 50 | 54 | ||
Total | 274 | 283 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 224 | 229 | ||
With impairment reserve recorded | 90 | 94 | ||
Total | 314 | 323 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 50 | 54 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 226 | [1] | 1,586 | [1] |
With impairment reserve recorded | 52 | [1] | 88 | [1] |
Total | 278 | [1] | 1,674 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 8 | 198 | ||
With impairment reserve recorded | 3 | 6 | ||
Foregone interest income | 11 | 204 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 0 | 17 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 17 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | 8 | 181 | ||
With impairment reserve recorded | 3 | 6 | ||
Total | 11 | 187 | ||
Construction and land development | ' | ' | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | 5,058 | 5,489 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 5,058 | 5,489 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 7,729 | 8,160 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 7,729 | 8,160 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 0 | 0 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 5,344 | [1] | 5,777 | [1] |
With impairment reserve recorded | 0 | [1] | 0 | [1] |
Total | 5,344 | [1] | 5,777 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 118 | 203 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 118 | 203 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 0 | 3 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 3 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | 118 | 200 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 118 | 200 | ||
Multi-family | ' | ' | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | 20 | 31 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 20 | 31 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 387 | 398 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 387 | 398 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 0 | 0 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 26 | [1] | 366 | [1] |
With impairment reserve recorded | 0 | [1] | 0 | [1] |
Total | 26 | [1] | 366 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 40 | 93 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 40 | 93 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | 40 | 93 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 40 | 93 | ||
1-4 family | ' | ' | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | 181 | 244 | ||
With impairment reserve recorded | 399 | 422 | ||
Total | 580 | 666 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 181 | 244 | ||
With impairment reserve recorded | 399 | 422 | ||
Total | 580 | 666 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 165 | 155 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 222 | [1] | 405 | [1] |
With impairment reserve recorded | 409 | [1] | 437 | [1] |
Total | 631 | [1] | 842 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 7 | 31 | ||
With impairment reserve recorded | 13 | 18 | ||
Foregone interest income | 20 | 49 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 12 | 34 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 12 | 34 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | -5 | -3 | ||
With impairment reserve recorded | 13 | 18 | ||
Total | 8 | 15 | ||
Commercial and industrial | ' | ' | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | 8,746 | 555 | ||
With impairment reserve recorded | 34 | 7,488 | ||
Total | 8,780 | 8,043 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 8,757 | 766 | ||
With impairment reserve recorded | 34 | 7,488 | ||
Total | 8,791 | 8,254 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 34 | 131 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 6,833 | [1] | 434 | [1] |
With impairment reserve recorded | 35 | [1] | 670 | [1] |
Total | 6,868 | [1] | 1,104 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 360 | 97 | ||
With impairment reserve recorded | 0 | 42 | ||
Foregone interest income | 360 | 139 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 220 | 114 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 220 | 114 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | 140 | -17 | ||
With impairment reserve recorded | 0 | 42 | ||
Total | 140 | 25 | ||
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(1) | ' | ' | ||
With no impairment reserve recorded | 0 | [1] | 6 | [1] |
With impairment reserve recorded | 0 | [1] | 0 | [1] |
Total | 0 | [1] | 6 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 0 | 0 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Home equity and second mortgages | ' | ' | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | 277 | 518 | ||
With impairment reserve recorded | 56 | 62 | ||
Total | 333 | 580 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 277 | 518 | ||
With impairment reserve recorded | 56 | 62 | ||
Total | 333 | 580 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 56 | 62 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 509 | [1] | 593 | [1] |
With impairment reserve recorded | 58 | [1] | 65 | [1] |
Total | 567 | [1] | 658 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 15 | 37 | ||
With impairment reserve recorded | 4 | 5 | ||
Foregone interest income | 19 | 42 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 0 | 3 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 3 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | 15 | 34 | ||
With impairment reserve recorded | 4 | 5 | ||
Total | 19 | 39 | ||
Other | ' | ' | ||
Recorded investment | ' | ' | ||
With no impairment reserve recorded | 763 | 795 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 763 | 795 | ||
Unpaid principal balance | ' | ' | ||
With no impairment reserve recorded | 1,429 | 1,461 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 1,429 | 1,461 | ||
Impairment reserve | ' | ' | ||
Impairment reserve | 0 | 0 | ||
Average recorded investment(1) | ' | ' | ||
With no impairment reserve recorded | 776 | [1] | 942 | [1] |
With impairment reserve recorded | 0 | [1] | 0 | [1] |
Total | 776 | [1] | 942 | [1] |
Foregone interest income | ' | ' | ||
With no impairment reserve recorded | 65 | 100 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 65 | 100 | ||
Interest income recognized | ' | ' | ||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Net foregone interest income | ' | ' | ||
With no impairment reserve recorded | 65 | 100 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | $65 | $100 | ||
[1] | (1)Average recorded investment is calculated primarily using daily average balances. |
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 $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Allowance for credit losses: | ' | ' | ' |
Beginning balance | $13,901 | $15,400 | ' |
Charge-offs | -2 | -794 | ' |
Recoveries | 31 | 336 | ' |
Provision | 0 | 243 | ' |
Ending balance | 13,930 | 15,185 | ' |
Ending balance: individually evaluated for impairment | 411 | 730 | ' |
Ending balance: collectively evaluated for impairment | 13,519 | 14,455 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Loans and lease receivables: | ' | ' | ' |
Total gross loans and leases receivable | 1,042,642 | 957,398 | 981,972 |
Ending balance: individually evaluated for impairment | 15,074 | 8,979 | ' |
Ending balance: collectively evaluated for impairment | 1,026,249 | 946,953 | ' |
Ending balance: loans acquired with deteriorated credit quality | 1,319 | 1,466 | ' |
Allowance as % of gross loans | 1.34% | 1.59% | 1.42% |
Commercial real estate | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' |
Beginning balance | 9,055 | 10,693 | ' |
Charge-offs | 0 | -776 | ' |
Recoveries | 20 | 323 | ' |
Provision | -387 | 80 | ' |
Ending balance | 8,688 | 10,320 | ' |
Ending balance: individually evaluated for impairment | 321 | 631 | ' |
Ending balance: collectively evaluated for impairment | 8,367 | 9,689 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Loans and lease receivables: | ' | ' | ' |
Total gross loans and leases receivable | 654,588 | 641,349 | ' |
Ending balance: individually evaluated for impairment | 5,198 | 6,947 | ' |
Ending balance: collectively evaluated for impairment | 648,071 | 632,936 | ' |
Ending balance: loans acquired with deteriorated credit quality | 1,319 | 1,466 | ' |
Allowance as % of gross loans | 1.33% | 1.61% | ' |
Commercial and industrial | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' |
Beginning balance | 4,235 | 4,129 | ' |
Charge-offs | 0 | -14 | ' |
Recoveries | 1 | 4 | ' |
Provision | 334 | 121 | ' |
Ending balance | 4,570 | 4,240 | ' |
Ending balance: individually evaluated for impairment | 34 | 36 | ' |
Ending balance: collectively evaluated for impairment | 4,536 | 4,204 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Loans and lease receivables: | ' | ' | ' |
Total gross loans and leases receivable | 336,746 | 276,094 | 293,552 |
Ending balance: individually evaluated for impairment | 8,780 | 654 | ' |
Ending balance: collectively evaluated for impairment | 327,966 | 275,440 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Allowance as % of gross loans | 1.36% | 1.54% | ' |
Consumer and other | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' |
Beginning balance | 273 | 371 | ' |
Charge-offs | -2 | -4 | ' |
Recoveries | 10 | 4 | ' |
Provision | -30 | -54 | ' |
Ending balance | 251 | 317 | ' |
Ending balance: individually evaluated for impairment | 56 | 63 | ' |
Ending balance: collectively evaluated for impairment | 195 | 254 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Loans and lease receivables: | ' | ' | ' |
Total gross loans and leases receivable | 16,834 | 15,596 | ' |
Ending balance: individually evaluated for impairment | 1,096 | 1,378 | ' |
Ending balance: collectively evaluated for impairment | 15,738 | 14,218 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Allowance as % of gross loans | 1.49% | 2.03% | ' |
Direct financing leases, net | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' |
Beginning balance | 338 | 207 | ' |
Charge-offs | 0 | 0 | ' |
Recoveries | 0 | 5 | ' |
Provision | 83 | 96 | ' |
Ending balance | 421 | 308 | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | 421 | 308 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Loans and lease receivables: | ' | ' | ' |
Total gross loans and leases receivable | 34,474 | 24,359 | 26,065 |
Ending balance: individually evaluated for impairment | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | 34,474 | 24,359 | ' |
Ending balance: loans acquired with deteriorated credit quality | $0 | $0 | ' |
Allowance as % of gross loans | 1.22% | 1.26% | ' |
Recovered_Sheet2
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Narrative Disclosures) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
loans | |||||
Financing Receivable, Recorded Investment | ' | ' | ' | ' | ' |
Loans and leases transferred to third parties total principal amount | $5,500,000 | $17,000,000 | $16,100,000 | $29,800,000 | ' |
Loan participations purchased on the Corporation's balance sheet | 1,532,000 | ' | 1,532,000 | ' | 498,000 |
Total amount of outstanding loans transferred to third parties as loan participations | 46,500,000 | ' | 46,500,000 | ' | 52,100,000 |
Total amount of loan participations remaining on the Corporations balance sheet | 66,200,000 | ' | 66,200,000 | ' | 77,200,000 |
Loans in the participation sold portfolio, considered impaired | 0 | ' | 0 | ' | 0 |
Certain loans acquired in transfer, carrying amount, net | 1,300,000 | ' | 1,300,000 | ' | 1,400,000 |
Certain loans acquired in transfer, provision for loan losses | ' | ' | 0 | ' | ' |
Total gross loans and leases receivable | 1,042,642,000 | 957,398,000 | 1,042,642,000 | 957,398,000 | 981,972,000 |
Non-accrual troubled debt restructurings | 7,200,000 | ' | 7,200,000 | ' | 8,100,000 |
Unfunded commitments, troubled debt restructurings | 0 | ' | 0 | ' | ' |
Troubled debt restructurings, subsequent default, number of loans | ' | ' | 0 | ' | ' |
Loans and leases receivable, difference between recorded investment and unpaid principal balance | 3,800,000 | ' | 3,800,000 | ' | 4,000,000 |
Performing troubled debt restructurings | 556,000 | ' | 556,000 | ' | 371,000 |
Substandard | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment | ' | ' | ' | ' | ' |
Total gross loans and leases receivable | 26,100,000 | ' | 26,100,000 | ' | 22,800,000 |
Special Mention | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment | ' | ' | ' | ' | ' |
Total gross loans and leases receivable | 0 | ' | 0 | ' | 0 |
Doubtful | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment | ' | ' | ' | ' | ' |
Total gross loans and leases receivable | 0 | ' | 0 | ' | 0 |
Loss | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment | ' | ' | ' | ' | ' |
Total gross loans and leases receivable | $0 | ' | $0 | ' | $0 |
Deposits_Details
Deposits (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Deposits [Line Items] | ' | ' |
Deposits | $1,269,200 | $1,129,855 |
Deposits, weighted average balance | 1,147,342 | 1,106,058 |
Deposits, weighted average interest rate during the period | 0.80% | 0.88% |
Non-interest-bearing transaction accounts | ' | ' |
Deposits [Line Items] | ' | ' |
Deposits | 165,980 | 151,275 |
Deposits, weighted average balance | 142,302 | 138,920 |
Deposits, weighted average interest rate during the period | 0.00% | 0.00% |
Interest-bearing transaction accounts | ' | ' |
Deposits [Line Items] | ' | ' |
Deposits | 88,478 | 77,004 |
Deposits, weighted average balance | 81,039 | 62,578 |
Deposits, weighted average interest rate during the period | 0.23% | 0.20% |
Money market accounts | ' | ' |
Deposits [Line Items] | ' | ' |
Deposits | 560,965 | 456,065 |
Deposits, weighted average balance | 465,708 | 450,558 |
Deposits, weighted average interest rate during the period | 0.51% | 0.53% |
Certificates of deposit | ' | ' |
Deposits [Line Items] | ' | ' |
Deposits | 43,691 | 51,979 |
Deposits, weighted average balance | 47,536 | 60,276 |
Deposits, weighted average interest rate during the period | 0.98% | 1.01% |
Brokered certificates of deposit | ' | ' |
Deposits [Line Items] | ' | ' |
Deposits | 410,086 | 393,532 |
Deposits, weighted average balance | $410,757 | $393,726 |
Deposits, weighted average interest rate during the period | 1.51% | 1.68% |
FHLB_Advances_Other_Borrowings3
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Composition of Borrowed Funds) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Composition of Borrowed Funds [Line Items] | ' | ' |
Borrowed funds | $33,251 | $22,251 |
Borrowed funds, weighted average balance | 25,216 | 28,982 |
Borrowed funds, interest rate during period | 7.36% | 6.78% |
Long-term borrowings | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' |
Borrowed funds | 33,241 | 22,241 |
Short-term borrowings | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' |
Borrowed funds | 10 | 10 |
Federal funds purchased | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' |
Borrowed funds | 0 | 0 |
Borrowed funds, weighted average balance | 148 | 260 |
Borrowed funds, interest rate during period | 0.81% | 0.74% |
FHLB advances | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' |
Borrowed funds | 0 | 0 |
Borrowed funds, weighted average balance | 4,604 | 6,471 |
Borrowed funds, interest rate during period | 0.16% | 0.19% |
Line of credit | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' |
Borrowed funds | 10 | 10 |
Borrowed funds, weighted average balance | 10 | 10 |
Borrowed funds, interest rate during period | 3.29% | 3.41% |
Subordinated notes payable | ' | ' |
Composition of Borrowed Funds [Line Items] | ' | ' |
Borrowed funds | 22,926 | 11,926 |
Borrowed funds, weighted average balance | 10,139 | 11,926 |
Borrowed funds, interest rate during period | 7.16% | 6.92% |
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 | 10.76% | 10.78% |
FHLB_Advances_Other_Borrowings4
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Narrative Disclosures) (Details) (Line of credit, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Line of credit | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit - unused line fee | $10 | $10 |
FHLB_Advances_Other_Borrowings5
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Narrative Disclosures Subordinated Debt) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Aug. 26, 2014 |
Debt Instrument [Line Items] | ' | ' |
Subordinated notes interest rate | ' | 6.50% |
Subordinated notes payable | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Subordinated notes payables | ' | $15 |
Subordinated notes maturity date | 1-Sep-24 | ' |
Long-term Debt, Description, Interest Rate Changes | 'From and including September 1, 2019 to the maturity date, the interest rate shall reset quarterly to an interest rate per annum equal to the then-current three-month LIBOR rate plus 470 basis points, payable quarterly in arrears. | ' |
Long-term Debt, Description, Call Features | 'The Corporation may, at its option, beginning with the interest payment date of September 1, 2019 and on any interest payment date thereafter, redeem the Notes, in whole or in part at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to the date of redemption. Any partial redemption will be made pro rata among all of the holders. The Notes are not subject to repayment at the option of the holders. | ' |
Subordinated debt proceeds used to pay for cash portion of merger | ' | $13.50 |
Fair_Value_Disclosures_Measure
Fair Value Disclosures (Measured on a Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 | $456 | $946 |
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 | 456 | 946 |
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 |
Interest rate swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 456 | 946 |
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 | 456 | 946 |
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 |
Municipal obligations | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | ' | 15,489 |
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 |
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 |
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 |
Asset-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ' | ' |
Assets measured on a recurring basis, fair value | 1,514 | 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 | 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 | 1,514 | 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 | 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 | 7,171 | 16,244 |
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 | 7,171 | 16,244 |
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 | 75,885 | 111,969 |
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 | 75,885 | 111,969 |
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 | 57,857 | 34,922 |
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 | 57,857 | 34,922 |
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 |
Fair_Value_Disclosures_Measure1
Fair Value Disclosures (Measured on a Non-Recurring Basis) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Total gains (losses) on impaired loans | $0 | $0 |
Total gains (losses) on foreclosed properties | -4 | -59 |
Impaired loans | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 6,301 | 13,719 |
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 | 6,252 | 13,666 |
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 | 49 | 53 |
Foreclosed properties | ' | ' |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ' | ' |
Assets measured on a non-recurring basis, fair value | 106 | 333 |
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 | 0 |
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 | 106 | 333 |
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 | $0 |
Fair_Value_Disclosures_Foreclo
Fair Value Disclosures (Foreclosed Properties) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ' | ' | ' | ' | ' |
Foreclosed properties at the beginning of the period | ' | ' | $333 | $1,574 | $1,574 |
Loans transferred to foreclosed properties, at lower of cost or fair value | ' | ' | 0 | 595 | 1,381 |
Proceeds from sale of foreclosed properties | ' | ' | -232 | -1,573 | -2,739 |
Net Gains (Losses) on Other Real Estate | ' | ' | 9 | ' | ' |
Gains (Losses) on Sales of Other Real Estate | 9 | 48 | 5 | -1 | 176 |
Impairment valuation | ' | ' | -4 | ' | -59 |
Foreclosed properties at the end of the period | $106 | ' | $106 | ' | $333 |
Fair_Value_Disclosures_Fair_Va
Fair Value Disclosures (Fair Value by Balance Sheet Groupings) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents, carrying amount | $174,498 | $81,286 | $96,114 | $85,586 |
Securities available-for-sale, carrying amount | 142,427 | 180,118 | ' | ' |
Securities held-to-maturity, carrying value | 42,522 | 0 | ' | ' |
Loans and leases receivable, net amount, carrying amount | 1,027,886 | 967,050 | ' | ' |
Federal Home Loan Bank stock, carrying amount | 1,349 | 1,255 | ' | ' |
Cash surrender value of life insurance, carrying amount | 23,772 | 23,142 | ' | ' |
Accrued interest receivable, carrying amount | 3,164 | 3,231 | ' | ' |
Interest rate swaps - assets, carrying amount | 456 | 946 | ' | ' |
Cash and cash equivalents, fair value | 174,502 | 81,295 | ' | ' |
Securities available-for-sale, fair value | 142,427 | 180,118 | ' | ' |
Held-to-maturity Securities, fair value | 42,212 | ' | ' | ' |
Loans and lease receivables, net, fair value | 1,024,896 | 963,937 | ' | ' |
Federal Home Loan Bank stock, fair value | 1,349 | 1,255 | ' | ' |
Cash surrender value of life insurance, fair value | 23,772 | 23,142 | ' | ' |
Accrued interest receivable, fair value | 3,164 | 3,231 | ' | ' |
Interest rate swaps - assets, fair value | 456 | 946 | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Deposits, carrying amount | 1,269,200 | 1,129,855 | ' | ' |
Federal Home Loan Bank and other borrowings, carrying amount | 22,936 | 11,936 | ' | ' |
Junior subordinated notes, carrying amount | 10,315 | 10,315 | ' | ' |
Interest rate swaps - liabilities, carrying amount | 456 | 946 | ' | ' |
Accrued interest payable, carrying amount | 1,780 | 1,052 | ' | ' |
Standby letters of credit, carrying amount | 135 | 219 | ' | ' |
Commitments to extend credit, carrying amount | 0 | 0 | ' | ' |
Deposits, fair value | 1,270,993 | 1,131,002 | ' | ' |
Federal Home Loan Bank and other borrowings fair value | 22,865 | 11,979 | ' | ' |
Junior subordinated notes, fair value | 7,098 | 7,084 | ' | ' |
Interest rate swaps - liabilities, fair value | 456 | 946 | ' | ' |
Accrued interest payable, fair value | 1,780 | 1,052 | ' | ' |
Standby letters of credit, fair value | 135 | 219 | ' | ' |
Fair Value Measurements - Level 1 Inputs | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents, fair value | 159,008 | 66,266 | ' | ' |
Securities available-for-sale, fair value | 0 | 0 | ' | ' |
Held-to-maturity Securities, fair value | 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 | 23,772 | 23,142 | ' | ' |
Accrued interest receivable, fair value | 3,164 | 3,231 | ' | ' |
Interest rate swaps - assets, fair value | 0 | 0 | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Deposits, fair value | 815,422 | 684,344 | ' | ' |
Federal Home Loan Bank and other borrowings fair value | 0 | 0 | ' | ' |
Junior subordinated notes, fair value | 0 | 0 | ' | ' |
Interest rate swaps - liabilities, fair value | 0 | 0 | ' | ' |
Accrued interest payable, fair value | 1,780 | 1,052 | ' | ' |
Standby letters of credit, fair value | 0 | 0 | ' | ' |
Fair Value Measurements - Level 2 Inputs | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents, fair value | 5,394 | 4,029 | ' | ' |
Securities available-for-sale, fair value | 142,427 | 180,118 | ' | ' |
Held-to-maturity Securities, fair value | 42,212 | ' | ' | ' |
Loans and lease receivables, net, fair value | 6,252 | 13,666 | ' | ' |
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 - assets, fair value | 456 | 946 | ' | ' |
Financial liabilities: | ' | ' | ' | ' |
Deposits, fair value | 455,571 | 446,658 | ' | ' |
Federal Home Loan Bank and other borrowings fair value | 22,865 | 11,979 | ' | ' |
Junior subordinated notes, fair value | 0 | 0 | ' | ' |
Interest rate swaps - liabilities, fair value | 456 | 946 | ' | ' |
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 | 10,100 | 11,000 | ' | ' |
Securities available-for-sale, fair value | 0 | 0 | ' | ' |
Held-to-maturity Securities, fair value | 0 | ' | ' | ' |
Loans and lease receivables, net, fair value | 1,018,644 | 950,271 | ' | ' |
Federal Home Loan Bank stock, fair value | 1,349 | 1,255 | ' | ' |
Cash surrender value of life insurance, fair value | 0 | 0 | ' | ' |
Accrued interest receivable, fair value | 0 | 0 | ' | ' |
Interest rate swaps - assets, 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 | 7,098 | 7,084 | ' | ' |
Interest rate swaps - liabilities, fair value | 0 | 0 | ' | ' |
Accrued interest payable, fair value | 0 | 0 | ' | ' |
Standby letters of credit, fair value | $135 | $219 | ' | ' |
Fair_Value_Disclosures_Narrati
Fair Value Disclosures (Narrative Disclosures) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
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 |
Commercial paper, at carrying value | 10,100,000 | 11,000,000 |
Certificates of deposit, at carrying value | 5,400,000 | 4,000,000 |
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 | 58.00% | ' |
Impaired loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Assets measured on a non-recurring basis, fair value | 6,301,000 | 13,719,000 |
Foreclosed properties | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Assets measured on a non-recurring basis, fair value | 106,000 | 333,000 |
Fair Value Measurements - Level 3 Inputs | Impaired loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Assets measured on a non-recurring basis, fair value | 49,000 | 53,000 |
Fair Value Measurements - Level 3 Inputs | Foreclosed properties | ' | ' |
Fair Value Inputs, Assets, Quantitative Information | ' | ' |
Assets measured on a non-recurring basis, fair value | $0 | $0 |
Assets, fair value disclosure, nonrecurring, number of foreclosed properties | 0 | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Derivatives not designated as hedging instruments, fair value | ' | ' |
Interest rate swap contracts not designated as hedging instruments - assets, gross | 456 | 946 |
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 456 | 946 |
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_Instrumen4
Derivative Financial Instruments (Narrative Disclosures) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Derivatives | ' | ' |
Interest rate swap contracts not designated as hedging instruments - assets, gross | $456,000 | $946,000 |
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 456,000 | 946,000 |
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 swap contracts not designated as hedging instruments - assets, gross | 456,000 | ' |
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 310,000 | ' |
To commercial borrowers, corporation receives fixed rates and pays floating rates | Minimum | ' | ' |
Derivatives | ' | ' |
Derivative, maturity date | 15-Mar-16 | ' |
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 swap contracts not designated as hedging instruments - assets, gross | 310,000 | ' |
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 456,000 | ' |
Interest rate derivative instruments not designated as hedging instruments at fair value, net | 146,000 | ' |
To dealer countparties, corporation pays fixed rates and receives floating rates | Minimum | ' | ' |
Derivatives | ' | ' |
Derivative, maturity date | 15-Mar-16 | ' |
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 | ' | ' |
Notional value of interest rate swaps with various commercial borrowers | 27,600,000 | ' |
Not Designated as Hedging Instrument | To dealer countparties, corporation pays fixed rates and receives floating rates | ' | ' |
Derivatives | ' | ' |
Notional value of interest rate swaps with various commercial borrowers | $27,600,000 | ' |
Regulatory_Capital_Regulatory_
Regulatory Capital (Regulatory Capital Ratios) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ' | ' |
Total capital | $164,341 | $145,352 |
Total capital to risk-weighted assets | 13.97% | 13.16% |
Total capital, Minimum Required for Capital Adequacy Purposes | 94,081 | 88,373 |
Total capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Tier 1 capital | 127,485 | 119,617 |
Tier 1 Capital to Risk-Weighted Assets | 10.84% | 10.83% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | 47,040 | 44,186 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Tier 1 capital | 127,485 | 119,617 |
Tier 1 leverage capital to average assets | 9.56% | 9.35% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | 53,325 | 51,153 |
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 | 128,629 | 123,331 |
Total capital to risk-weighted assets | 12.30% | 12.57% |
Total capital, Minimum Required for Capital Adequacy Purposes | 83,672 | 78,516 |
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 | 104,590 | 98,145 |
Total capital to risk-weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 capital | 116,289 | 111,062 |
Tier 1 Capital to Risk-Weighted Assets | 11.12% | 11.32% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | 41,836 | 39,258 |
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 | 62,754 | 58,887 |
Tier 1 capital to risk weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 6.00% | 6.00% |
Tier 1 capital | 116,289 | 111,062 |
Tier 1 leverage capital to average assets | 10.43% | 10.35% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | 44,589 | 42,913 |
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 | 55,737 | 53,641 |
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 | 18,879 | 17,944 |
Total capital to risk-weighted assets | 14.58% | 14.66% |
Total capital, Minimum Required for Capital Adequacy Purposes | 10,360 | 9,790 |
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 | 12,950 | 12,238 |
Total capital to risk-weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 capital | 17,289 | 16,414 |
Tier 1 Capital to Risk-Weighted Assets | 13.35% | 13.41% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | 5,180 | 4,895 |
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 | 7,770 | 7,343 |
Tier 1 capital to risk weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 6.00% | 6.00% |
Tier 1 capital | 17,289 | 16,414 |
Tier 1 leverage capital to average assets | 7.64% | 7.64% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | 9,058 | 8,595 |
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 | $11,322 | $10,744 |
Tier 1 leverage capital to average assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 5.00% | 5.00% |
Regulatory_Capital_Narrative_D
Regulatory Capital (Narrative Disclosures) (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Regulatory Capital Requirements [Abstract] | ' |
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. |