Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 03, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | First Business Financial Services, Inc. | ||
Entity Central Index Key | 1,521,951 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 203.2 | ||
Entity Common Stock, Shares Outstanding | 8,700,172 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 14,640 | $ 14,881 |
Short-term investments | 98,924 | 88,356 |
Cash and cash equivalents | 113,564 | 103,237 |
Securities available-for-sale, at fair value | 140,548 | 144,698 |
Securities held-to-maturity, at amortized cost | 37,282 | 41,563 |
Loans held for sale | 2,702 | 1,340 |
Loans and leases receivable, net of allowance for loan and lease losses of $16,316 and $14,329, respectively | 1,414,649 | 1,265,098 |
Premises and equipment, net | 3,954 | 3,943 |
Foreclosed properties | 1,677 | 1,693 |
Cash surrender value of bank-owned life insurance | 28,298 | 27,314 |
Investment in Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 2,843 | 2,340 |
Accrued interest receivable and other assets | 24,882 | 26,217 |
Goodwill and other intangible assets | 12,493 | 11,944 |
Total assets | 1,782,892 | 1,629,387 |
Liabilities and Stockholders’ Equity | ||
Deposits | 1,577,231 | 1,438,268 |
Federal Home Loan Bank and other borrowings | 35,226 | 33,994 |
Junior subordinated notes | 10,315 | 10,315 |
Accrued interest payable and other liabilities | 9,288 | 9,062 |
Total liabilities | $ 1,632,060 | $ 1,491,639 |
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, 8,922,375 and 9,074,852 shares issued, 8,699,410 and 8,671,854 shares outstanding at December 31, 2015 and 2014, respectively | 89 | 45 |
Additional paid-in capital | 76,549 | 74,963 |
Retained earnings | 80,584 | 67,886 |
Accumulated other comprehensive (loss) income | (80) | 218 |
Treasury stock (222,965 and 201,499 shares at December 31, 2015 and 2014, respectively), at cost | (6,310) | (5,364) |
Total stockholders’ equity | 150,832 | 137,748 |
Total liabilities and stockholders’ equity | $ 1,782,892 | $ 1,629,387 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets - Parenthetical [Abstract] | ||
Allowance for loan and lease losses | $ 16,316 | $ 14,329 |
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 | 8,922,375 | 9,074,852 |
Common stock, shares outstanding | 8,699,410 | 8,671,854 |
Treasury stock, shares | 222,965 | 201,499 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income | |||
Loans and leases | $ 69,135 | $ 54,047 | $ 50,238 |
Securities income | 2,962 | 3,342 | 3,315 |
Short-term investments | 374 | 312 | 257 |
Total interest income | 72,471 | 57,701 | 53,810 |
Interest expense | |||
Deposits | 10,877 | 9,470 | 9,739 |
Notes payable and other borrowings | 1,842 | 989 | 855 |
Junior subordinated notes | 1,112 | 1,112 | 1,111 |
Total interest expense | 13,831 | 11,571 | 11,705 |
Net interest income | 58,640 | 46,130 | 42,105 |
Provision for loan and lease losses | 3,386 | 1,236 | (959) |
Net interest income after provision for loan and lease losses | 55,254 | 44,894 | 43,064 |
Non-interest income | |||
Trust and investment services fee income | 4,954 | 4,434 | 3,756 |
Gain on sale of SBA loans | 3,999 | 318 | 0 |
Gain on sale of residential mortgage loans | 729 | 74 | 0 |
Service charges on deposits | 2,812 | 2,469 | 2,150 |
Loan fees | 2,187 | 1,577 | 1,295 |
Increase in cash surrender value of bank-owned life insurance | 960 | 862 | 845 |
Other | 1,370 | 369 | 396 |
Total non-interest income | 17,011 | 10,103 | 8,442 |
Non-interest expense | |||
Compensation | 28,543 | 21,477 | 18,278 |
Occupancy | 1,973 | 1,391 | 1,268 |
Professional fees | 4,893 | 3,405 | 1,968 |
Data processing | 2,378 | 1,710 | 1,500 |
Marketing | 2,585 | 1,662 | 1,355 |
Equipment | 1,230 | 650 | 528 |
FDIC insurance | 920 | 758 | 741 |
Collateral liquidation costs | 472 | 320 | 196 |
Net gain on foreclosed properties | (171) | (10) | (117) |
Other | 4,551 | 2,412 | 4,654 |
Total non-interest expense | 47,374 | 33,775 | 30,371 |
Income before income tax expense | 24,891 | 21,222 | 21,135 |
Income tax expense | 8,377 | 7,083 | 7,389 |
Net income | $ 16,514 | $ 14,139 | $ 13,746 |
Earnings per common share: | |||
Basic | $ 1.90 | $ 1.76 | $ 1.75 |
Diluted | 1.90 | 1.75 | 1.74 |
Dividends declared per share | $ 0.44 | $ 0.42 | $ 0.28 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 16,514 | $ 14,139 | $ 13,746 |
Other comprehensive (loss) income, before tax | |||
Unrealized securities (losses) gains arising during the period | (719) | 1,619 | (4,092) |
Unrealized losses transferred during the period | 0 | (874) | 0 |
Other Comprehensive Income (Loss), Amortization of Net Unrealized Losses Transferred to Held-to-Maturity from Available-for-Sale, before tax | 233 | 167 | 0 |
Income tax benefit (expense) | 188 | (352) | 1,567 |
Total other comprehensive (loss) income | (298) | 560 | (2,525) |
Comprehensive income | $ 16,216 | $ 14,699 | $ 11,221 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock |
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 | 7,833,334 | |||||
Net income | 13,746 | 13,746 | ||||
Other comprehensive income | $ (2,525) | (2,525) | ||||
Exercise of stock options, shares | 139,368 | 139,368 | ||||
Exercise of stock options | $ 1,474 | $ 1 | 1,473 | |||
Share-based compensation - restricted shares, shares | 50,060 | |||||
Share-based compensation - restricted shares | 660 | 660 | ||||
Share-based compensation - tax benefits | 365 | 365 | ||||
Cash dividends ($0.28 per share during 2013, $0.42 per share during 2014, and $0.44 per share during 2015) | (2,202) | (2,202) | ||||
Treasury stock purchased, shares | (134,768) | |||||
Treasury stock purchased | (1,782) | (1,782) | ||||
Ending balance at Dec. 31, 2013 | 109,275 | $ 41 | 56,002 | 57,143 | (342) | (3,569) |
Common stock, shares outstanding at Dec. 31, 2013 | 7,887,994 | |||||
Net income | 14,139 | 14,139 | ||||
Other comprehensive income | 560 | 560 | ||||
Issuance of common stock, shares | 720,162 | |||||
Issuance of common stock | $ 16,557 | $ 3 | 16,554 | |||
Exercise of stock options, shares | 78,000 | 78,000 | ||||
Exercise of stock options | $ 937 | $ 1 | 936 | |||
Share-based compensation - restricted shares, shares | 64,522 | |||||
Share-based compensation - restricted shares | 887 | 887 | ||||
Share-based compensation - tax benefits | 584 | 584 | ||||
Cash dividends ($0.28 per share during 2013, $0.42 per share during 2014, and $0.44 per share during 2015) | (3,396) | (3,396) | ||||
Treasury stock purchased, shares | (78,824) | |||||
Treasury stock purchased | (1,795) | (1,795) | ||||
Ending balance at Dec. 31, 2014 | $ 137,748 | $ 45 | 74,963 | 67,886 | 218 | (5,364) |
Common stock, shares outstanding at Dec. 31, 2014 | 8,671,854 | 8,671,854 | ||||
Net income | $ 16,514 | 16,514 | ||||
Other comprehensive income | (298) | (298) | ||||
Common Stock Issued During Period, Value, Stock Splits | $ 0 | $ (44) | 44 | |||
Exercise of stock options, shares | 24,000 | 24,000 | ||||
Exercise of stock options | $ 300 | $ 0 | 300 | |||
Share-based compensation - restricted shares, shares | 45,347 | |||||
Share-based compensation - restricted shares | 1,063 | 1,063 | ||||
Share-based compensation - tax benefits | 267 | 267 | ||||
Cash dividends ($0.28 per share during 2013, $0.42 per share during 2014, and $0.44 per share during 2015) | (3,816) | (3,816) | ||||
Treasury stock purchased, shares | (41,791) | |||||
Treasury stock purchased | (946) | (946) | ||||
Ending balance at Dec. 31, 2015 | $ 150,832 | $ 89 | $ 76,549 | $ 80,584 | $ (80) | $ (6,310) |
Common stock, shares outstanding at Dec. 31, 2015 | 8,699,410 | 8,699,410 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common stock, cash dividends, per share, declared | $ 0.44 | $ 0.42 | $ 0.28 |
Retained earnings | |||
Common stock, cash dividends, per share, declared | $ 0.44 | $ 0.42 | $ 0.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 16,514 | $ 14,139 | $ 13,746 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income taxes, net | 1,158 | 1,389 | 2,428 |
Provision for loan and lease losses | 3,386 | 1,236 | (959) |
Depreciation, amortization and accretion, net | (90) | 1,870 | 2,322 |
Share-based compensation | 1,063 | 887 | 660 |
Increase in cash surrender value of bank-owned life insurance | (960) | (862) | (845) |
Origination of loans for sale | (70,254) | (9,392) | 0 |
Sale of loans originated for sale | 77,333 | 6,651 | 0 |
Gain on sale of loans originated for sale | (4,728) | (392) | 0 |
Net gain on foreclosed properties, including impairment valuation | (171) | (10) | (117) |
Excess tax benefit from share-based compensation | (267) | (584) | (365) |
(Increase) decrease in accrued interest receivable and other assets | (1,033) | (5,448) | 2,713 |
Increase (decrease) in accrued interest payable and other liabilities | 1,269 | 2,390 | (3,681) |
Net cash provided by (used in) operating activities | 23,220 | 11,874 | 15,902 |
Investing activities | |||
Proceeds from maturities, redemptions and paydowns of available-for-sale securities | 42,899 | 44,148 | 62,520 |
Proceeds from maturities, redemptions and paydowns of held-to-maturity securities | 4,349 | 2,211 | 0 |
Purchases of available-for-sale securities | (40,721) | (52,947) | (48,048) |
Proceeds from sale of foreclosed properties | 528 | 255 | 2,739 |
Net increase in loans and leases | (155,204) | (299,095) | (70,912) |
Net cash associated with the Alterra Bank acquisition | 0 | (11,957) | 0 |
Investment in community historic and development entities | (578) | (7,500) | 0 |
Investments in limited partnerships | 0 | (1,000) | (1,250) |
Distributions from limited partnerships | 459 | 722 | 672 |
Investment in FHLB and FRB Stock | (1,352) | (1,459) | (1,185) |
Proceeds from sale of FHLB Stock | 849 | 373 | 1,074 |
Purchases of leasehold improvements and equipment, net | (789) | (3,190) | (531) |
Proceeds from sale of leasehold improvements and equipment, net | 0 | 0 | 30 |
Increase in bank owned life insurance policies | 0 | (3,285) | 0 |
Premium payment on bank owned life insurance policies | (25) | (25) | (25) |
Net cash (used in) provided by investing activities | (149,585) | (332,749) | (54,916) |
Financing activities | |||
Net increase in deposits | 139,469 | 308,413 | 37,601 |
Repayment of FHLB advances | (1,000) | 0 | (469) |
Increase in FHLB advances | 0 | 9,383 | 0 |
Net increase (decrease) in short-term borrowed funds | 1,500 | 1,000 | 0 |
Net increase in long-term borrowed funds | 918 | 675 | 0 |
Proceeds from issuance of subordinated notes payable, net of issuance costs | 0 | 14,469 | 0 |
Repayment of subordinated notes payable | 0 | (4,000) | 0 |
Excess tax benefit from share-based compensation | 267 | 584 | 365 |
Common stock issuance | 0 | 16,557 | 0 |
Cash dividends paid | (3,816) | (3,396) | (2,475) |
Exercise of stock options | 300 | 936 | 1,474 |
Purchase of treasury stock | (946) | (1,795) | (1,782) |
Net cash provided by (used in) financing activities | 136,692 | 342,826 | 34,714 |
Net (decrease) increase in cash and cash equivalents | 10,327 | 21,951 | (4,300) |
Cash and cash equivalents at the beginning of the period | 103,237 | 81,286 | 85,586 |
Cash and cash equivalents at the end of the period | 113,564 | 103,237 | 81,286 |
Supplementary cash flow information | |||
Interest paid on deposits and borrowings | 13,639 | 11,048 | 12,365 |
Income taxes paid | 5,668 | 7,221 | 6,089 |
Transfer of securities from available-for-sale to held-to-maturity | 0 | 44,587 | 0 |
Transfer of loans from held-to-maturity to held-for-sale | 4,336 | 0 | 0 |
Unrealized loss on transfer of securities from available-for-sale to held-to-maturity | 0 | 874 | 0 |
Foreclosed properties acquired in acquisition, at fair value | 0 | 1,605 | 0 |
Transfer to foreclosed properties | $ 341 | $ 0 | $ 1,381 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations. The accounting and reporting practices of First Business Financial Services, Inc. (the “Corporation”), its wholly-owned subsidiaries, First Business Bank (“FBB”), First Business Bank – Milwaukee (“FBB – Milwaukee”) and Alterra Bank (“Alterra”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). FBB, FBB – Milwaukee and Alterra 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, Green Bay and Manitowoc,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. Alterra operates as a commercial banking institution in the Kansas City market and the surrounding areas. The Banks provide a full range of financial services to businesses, business owners, executives, professionals and high net worth individuals. The Banks are subject to competition from other financial institutions and service providers and are also subject to state and federal regulations. FBB has the following wholly-owned subsidiaries: First Business Capital Corp. (“FBCC”), First Madison Investment Corp. (“FMIC”), First Business Equipment Finance, LLC (“FBEF”), Rimrock Road Investment Fund, LLC (“Rimrock Road”) and BOC Investment, LLC (“BOC”). FMIC is located in and was formed under the laws of the state of Nevada. FBB-Milwaukee has one subsidiary, FBB – Milwaukee Real Estate, LLC (“FBBMRE”). Basis of Financial Statement Presentation. The Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 810, the Corporation’s ownership interest in FBFS Statutory Trust II (“Trust II”) has not been consolidated into the financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. Management of the Corporation is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could experience significant changes in the near-term include the value of foreclosed property, lease residuals, property under operating leases, securities, income taxes and the level of the allowance for loan and lease losses. Certain amounts in prior periods may have been reclassified to conform to current presentation. Subsequent events have been evaluated through the issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. Cash and Cash Equivalents. The Corporation considers federal funds sold, interest-bearing deposits and short-term investments that have original maturities of three months or less to be cash equivalents. Securities. The Corporation classifies its investment and mortgage-related securities as available-for-sale, held-to-maturity and trading. Debt securities that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity and are stated at amortized cost. Debt and equity securities bought expressly for the purpose of selling in the near term are classified as trading securities and are measured at fair value with unrealized gains and losses reported in earnings. Debt and equity securities not classified as held-to-maturity or as trading are classified as available-for-sale. Available-for-sale securities are measured at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity, net of tax. Realized gains and losses, and declines in value judged to be other than temporary, are included in the consolidated statements of income as a component of non-interest income. The cost of securities sold is based on the specific identification method. The Corporation did not hold any trading securities at December 31, 2015 and 2014 . Discounts and premiums on investment and mortgage-backed securities are accreted and amortized into interest income using the effective yield method over the weighted average life of the securities. Declines in the fair value of investment securities (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the securities is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) the Corporation has the intent to sell a security; (2) it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis; or (3) the Corporation does not expect to recover the entire amortized cost basis of the security. If the Corporation intends to sell a security or if it is more likely than not that the Corporation will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If the Corporation does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. Loans Held for Sale. Residential real estate loans and the guaranteed portion of SBA loans which are originated and intended for sale in the secondary market in the foreseeable future are classified as held for sale. These loans are carried at the lower of cost or estimated market value in the aggregate. As assets specifically originated for sale, the origination of, disposition of, and gain/loss on these loans are classified as operating activities in the statement of cash flows. Fees received from the borrower and direct costs to originate the loan are deferred and recognized as part of the gain or loss on sale. There was $2.7 million and $1.3 million in loans held for sale outstanding at December 31, 2015 and 2014 , respectively. Loans and Leases. Loans and leases which management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance with adjustments for partial charge-offs, the allowance for loan and lease losses, deferred fees or costs on originated loans and leases, and unamortized premiums or discounts on any purchased loans. Loans originated or purchased and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Unrealized losses on such loans are recognized through a valuation allowance by a charge to other non-interest income. Gains and losses on the sale of loans are also included in other non-interest income. A loan or a lease is accounted for as a troubled debt restructuring if the Corporation, for economic or legal reasons related to the borrower’s financial condition, grants a concession to the borrower that it would not otherwise consider. A troubled debt restructuring may involve the receipt of assets from the debtor in partial or full satisfaction of the loan or lease, or a modification of terms such as a reduction of the stated interest rate or face amount of the loan or lease, a reduction of accrued interest, an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan or lease with similar risk, or some combination of these concessions. Restructured loans can involve loans remaining on non-accrual, moving to non-accrual, or continuing on accrual status, depending on individual facts and circumstances. Non-accrual restructured loans are included and treated with all other non-accrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings which are considered and accounted for as impaired loans. Generally, restructured loans remain on non-accrual until the borrower has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on non-accrual. Interest on non-impaired loans and leases is accrued and credited to income on a daily basis based on the unpaid principal balance and is calculated using the effective interest method. Per policy, a loan or a lease is considered impaired and placed on a non-accrual status when it becomes 90 days past due or it is doubtful that contractual principal and interest will be collected in accordance with the terms of the contract. A loan or lease is determined to be past due if the borrower fails to meet a contractual payment and will continue to be considered past due until all contractual payments are received. When a loan or lease is placed on non-accrual, the interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. If collectability of the contractual principal and interest is in doubt, payments received are first applied to reduce loan principal. If collectability of the contractual payments is not in doubt, payments may be applied to interest for interest amounts due on a cash basis. As soon as it is determined with certainty that the principal of an impaired loan or lease is uncollectable either through collections from the borrower or disposition of the underlying collateral, the portion of the carrying balance that exceeds the estimated measurement value of the loan or lease is charged off. Loans or leases are returned to accrual status when they are brought current in terms of both principal and accrued interest due, have performed in accordance with contractual terms for a reasonable period of time, and when the ultimate collectability of total contractual principal and interest is no longer doubtful. Transfers of assets, including but not limited to participation interests in originated loans, that upon completion of the transfer satisfy the conditions to be reported as a sale, including legal isolation, are derecognized from the Consolidated Financial Statements. Transfers of assets that upon completion of the transfer do not meet the conditions of a sale are recorded on a gross basis with a secured borrowing identified to reflect the amount of the transferred interest. Loan and lease origination fees as well as certain direct origination costs are deferred and amortized as an adjustment to loan yields over the stated term of the loan or lease. Loans or leases that result from a refinance or restructuring, other than a troubled debt restructuring, where terms are at least as favorable to the Corporation as the terms for comparable loans to other borrowers with similar collection risks and result in an essentially new loan or lease, are accounted for as a new loan or lease. Any unamortized net fees, costs, or penalties are recognized when the new loan or lease is originated. Unamortized net loan or lease fees or costs for loans and leases that result from a refinance or restructure with only minor modifications to the original loan or lease contract are carried forward as a part of the net investment in the new loan or lease. For troubled debt restructurings all fees received in connection with a modification of terms are applied as a reduction of the loan or lease and any related costs, including direct loan origination costs, are charged to expense as incurred. The Corporation purchased an individual loan in 2013 and a group of loans in connection with the Alterra acquisition which have shown evidence of credit deterioration since origination. These purchased loans are recorded at fair value, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased loans are accounted for individually. The Corporation estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of fair value are recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a provision for loan loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Allowance for Loan and Lease Losses. The allowance for loan and lease losses is maintained at a level that management deems appropriate to absorb probable and estimable losses inherent in the loan and lease portfolios. The methodology applied for determining inherent losses stems from current risk characteristics of the loan and lease portfolio, an assessment of individual impaired and other problem loans and leases, actual loss experience and adverse situations that may affect the borrower’s ability to repay. The methodology also focuses on evaluation of several factors for each portfolio category, including but not limited to: management’s ongoing review and grading of the loan and lease portfolios, consideration of delinquency experience, changes in the size of the loan and lease portfolios, existing economic conditions, level of loans and leases subject to more frequent review by management, changes in underlying collateral, concentrations of loans to specific industries, and other qualitative and quantitative factors that could affect credit losses. Some impaired and other loans and leases have risk characteristics that are unique to an individual borrower and the loss must be estimated on an individual basis. Other impaired and problem loans and leases may have risk characteristics similar to other loans and leases and bear similar inherent risk of loss. Such loans and leases, which are not individually reviewed and measured for impairment, are aggregated and historical loss statistics are used to determine the risk of loss. The measurement of the estimate of loss is reliant upon historical experience, information about the ability of the individual debtor to pay and the appraisal of loan collateral in light of current economic conditions. An estimate of loss is an approximation of what portion of all amounts receivable, according to the contractual terms of that receivable, is deemed uncollectible. Determination of the allowance is inherently subjective because it requires estimation of amounts and timing of expected future cash flows on impaired and other problem loans and leases, estimation of losses on types of loans and leases based on historical losses and consideration of current economic trends, both local and national. Based on management’s periodic review using all previously mentioned pertinent factors, a provision for loan and lease losses is charged to expense when it is determined an increase in the allowance for loan and lease losses is appropriate. A negative provision for loan and lease losses may be recognized if management determines a reduction in the level of allowance for loan and lease losses is appropriate. Loan and lease losses are charged against the allowance and recoveries are credited to the allowance. The allowance for loan and lease losses contains specific allowances established for expected losses on impaired loans and leases. Impaired loans and leases are defined as loans and leases for which, based on current information and events, it is probable that the Corporation will be unable to collect scheduled principal and interest payments according to the contractual terms of the loan or lease agreement. Loans and leases subject to impairment are defined as non-accrual and restructured loans and leases. Impaired loans and leases are evaluated on an individual basis to determine the amount of specific reserve or charge-off required, if any. Smaller balance (individually less than $50,000) loans and leases are collectively evaluated for impairment as allowed under applicable accounting standards. The measurement value of impaired loans and leases is determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate (the contractual interest rate adjusted for any net deferred loan fees or costs, premium, or discount existing at the origination or acquisition of the loan), the market price of the loan or lease, or the fair value of the underlying collateral less costs to sell, if the loan or lease is collateral dependent. A loan or lease is collateral dependent if repayment is expected to be provided principally by the underlying collateral. A loan’s effective interest rate may change over the life of the loan based on subsequent changes in rates or indices or may be fixed at the rate in effect at the date the loan was determined to be impaired. Subsequent to the initial impairment, any significant change in the amount or timing of an impaired loan or lease’s future cash flows will result in a reassessment of the valuation allowance to determine if an adjustment is necessary. Measurements based on observable market price or fair value of the collateral may change over time and require a reassessment of the valuation allowance if there is a significant change in either measurement base. Any increase in the present value of expected future cash flows attributable to the passage of time is recorded as interest income accrued on the net carrying amount of the loan or lease at the effective interest rate used to discount the impaired loan or lease’s estimated future cash flows. For the years ended December 31, 2015 , 2014 and 2013 , no interest income was recognized due to the increase of the present value of future cash flows attributable to the passage of time. Any change in present value attributable to changes in the amount or timing of expected future cash flows is recorded as loan loss expense in the same manner in which impairment was initially recognized or as a reduction of loan loss expense that otherwise would be reported. Where the level of loan or lease impairment is measured using observable market price or fair value of collateral, any change in the observable market price of an impaired loan or lease or fair value of the collateral of an impaired collateral-dependent loan or lease is recorded as loan loss expense in the same manner in which impairment was initially recognized. Any increase in the observable market value of the impaired loan or lease or fair value of the collateral in an impaired collateral-dependent loan or lease is recorded as a reduction in the amount of loan loss expense that otherwise would be reported. Net Investment in Direct Financing Leases. Net investment in direct financing lease agreements represents total undiscounted payments plus estimated unguaranteed residual value (approximating 3% to 20% of the cost of the related equipment) and is recorded as lease receivables when the lease is signed and the leased property is delivered to the client. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis which results in an approximate level rate of return on the unrecovered lease investment. Lease payments are recorded when due under the lease contract. Residual values are established at lease inception equal to the estimated value to be received from the equipment following termination of the initial lease and such estimated value considers all relevant information and circumstances regarding the equipment. In estimating the equipment’s fair value at lease termination, the Corporation relies on internally or externally prepared appraisals, published sources of used equipment prices and historical experience adjusted for known current industry and economic trends. The Corporation’s estimates are periodically reviewed to ensure reasonableness; however, the amounts the Corporation will ultimately realize could differ from the estimated amounts. When there are other than temporary declines in the Corporation’s carrying amount of the unguaranteed residual value, the carrying value is reduced and charged to non-interest expense. Operating Leases. Machinery and equipment are leased to clients under operating leases and are recorded at cost. Equipment under such leases is depreciated over the estimated useful life or term of the lease, if shorter. The impairment loss, if any, would be charged to expense in the period it becomes evident. Rental income is recorded on the straight-line accrual basis as other non-interest income. Leasehold Improvements and Equipment. The cost of capitalized leasehold improvements is amortized on the straight-line method over the lesser of the term of the respective lease or estimated economic life. Equipment is stated at cost less accumulated depreciation and amortization which is calculated by the straight-line method over the estimated useful lives of three to ten years. Maintenance and repair costs are charged to expense as incurred. Improvements which extend the useful life are capitalized and depreciated over the remaining useful life of the assets. Foreclosed Properties. Property acquired by repossession, foreclosure or by deed in lieu of foreclosure is carried at the lower of the recorded investment in the loan at the time of acquisition or the fair value of the underlying property, less costs to sell. Any write-down in the carrying value of a loan or lease at the time of acquisition is charged to the allowance for loan and lease losses. Any subsequent write-downs to reflect current fair value, as well as gains and losses on disposition and revenues are recorded in non-interest expense. Costs relating to the development and improvement of the property are capitalized while holding period costs are charged to other non-interest expense. Bank-Owned Life Insurance. Bank-owned life insurance (“BOLI”) is reported at the amount that would be realized if the life insurance policies were surrendered on the balance sheet date. BOLI policies owned by the Banks are purchased with the objective to fund certain future employee benefit costs with the death benefit proceeds. The cash surrender value of such policies is recorded in cash surrender value of life insurance on the consolidated balance sheets and changes in the value are recorded in non-interest income. The total death benefit of all of the BOLI policies was $67.1 million as of December 31, 2015 . There are no restrictions on the use of BOLI proceeds nor are there any contractual restrictions on the ability to surrender the policy. As of each of December 31, 2015 and 2014 , there were no borrowings against the cash surrender value of the BOLI policies. Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) Stock. The Banks are required to maintain FHLB stock as members of the FHLB, and in amounts as required by these institutions. Alterra, as a state chartered member of the Federal Reserve Bank of Kansas City, is required to own shares of FRB stock. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to cost. At December 31, 2015 , and 2014 , the Banks had FHLB stock of $1.8 million . Alterra had FRB stock of $1.1 million and $533,000 at December 31, 2015 and 2014 , respectively. The Corporation periodically evaluates its holding in FHLB and FRB stock for impairment. Should the stock be impaired, it would be written down to its estimated fair value. There were no impairments recorded on FHLB and FRB stock during the years ended December 31, 2015 and 2014 . Goodwill and Other Intangible Assets. The excess of the cost of the acquisition over the fair value of the net assets acquired consists primarily of goodwill, core deposit intangibles and loan servicing rights. Core deposit intangibles have estimated finite lives and are amortized on an accelerated basis to expense over a period of seven years. Loan servicing rights, when purchased, are initially recorded at fair value and subsequently amortized in proportion to and over the period of estimated net servicing income. The Corporation reviews other intangible assets for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, in which case an impairment charge would be recorded. Goodwill is not amortized but is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount (including goodwill). An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of each reporting unit is calculated and compared to the recorded book value, “step one.” If the calculated fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of a reporting unit exceeds its calculated fair value, the impairment test continues (“step two”) by comparing the carrying value of the reporting unit’s goodwill to the implied fair value of goodwill. The implied fair value is computed by adjusting all assets and liabilities of the reporting unit to current fair value with the offset adjustment to goodwill. The adjusted goodwill balance is the implied fair value of the goodwill. An impairment charge is recognized if the carrying value of goodwill exceeds the implied fair value of goodwill. See Note 6 for additional information on goodwill and other intangible assets. Other Investments. The Corporation owns certain equity investments in other corporate organizations which are not consolidated because the Corporation does not own more than a 50% interest or exercise control over the organization. Such investments are not variable interest entities. Investments in corporations representing at least a 20% interest are generally accounted for using the equity method and investments in corporations representing less than 20% interest are generally accounted for at cost. Investments in limited partnerships representing from at least a 3% up to a 50% interest in the entity are generally accounted for using the equity method and investments in limited partnerships representing less than 3% are generally accounted for at cost. All of these investments are periodically evaluated for impairment. Should an investment be impaired, it would be written down to its estimated fair value. The equity investments are reported in other assets and the income and expense from such investments, if any, is reported in non-interest income and non-interest expense. Derivative Instruments. The Corporation uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets, liabilities, future cash flows and economic hedges for written client derivative contracts. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash to the other party based on a notional amount and an underlying as specified in the contract and may be subject to master netting agreements. A notional amount represents the number of units of a specific item, such as currency units. An underlying represents a variable, such as an interest rate. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying. Market risk is the risk of loss arising from an adverse change in interest rates, exchange rates or equity prices. The Corporation’s primary market risk is interest rate risk. Instruments designed to manage interest rate risk include interest rate swaps, interest rate options and interest rate caps and floors with indices that relate to the pricing of specific assets and liabilities. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance sheet and the risk management strategies for the current and anticipated rate environments. Counterparty risk with respect to derivative instruments occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement. Counterparty risk is managed by limiting the counterparties to highly rated dealers, requiring collateral postings when values are in deficit positions, applying uniform credit standards to all activities with credit risk and monitoring the size and the maturity structure of the derivative portfolio. All derivative instruments are to be carried at fair value on the consolidated balance sheets. The accounting for the gain or loss due to changes in the fair value of a derivative instrument depends on whether the derivative instrument qualifies as a hedge. If the derivative instrument does not qualify as a hedge, the gains or losses are reported in earnings when they occur. However, if the derivative instrument qualifies as a hedge, the accounting varies based on the type of risk being hedged. In 2015 and 2014 , the Corporation solely utilized interest rate swaps which did not qualify for hedge accounting and therefore all changes in fair value and gains and losses on these instruments were reported in earnings as they occurred. The effects of netting arrangements are disclosed within the Notes of the Consolidated Financial Statements. Income Taxes. Deferred income tax assets and liabilities are computed annually for temporary differences in timing between the financial statement and tax basis of assets and liabilities that result in taxable or deductible amounts in the future based on enacted tax law and rates applicable to periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, appropriate tax planning strategies and projections for future taxable income over the period which the deferred tax assets are deductible. When necessary, valuation allowances are established to reduce deferred tax assets to the realizable amount. Management believes it is more likely than not that the Corporation will realize t |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and due from banks was approximately $14.6 million and $14.9 million at December 31, 2015 and 2014 , respectively. Required reserves in the form of either vault cash or deposits held at the Federal Reserve Bank (“FRB”) were $3.9 million and $1.2 million at December 31, 2015 and 2014 , respectively. FRB balances were $84.9 million and $70.5 million at December 31, 2015 and 2014 , respectively, and are included in short-term investments on the Consolidated Balance Sheets. Short-term investments, considered cash equivalents, were $98.9 million and $88.4 million at December 31, 2015 and 2014 , respectively. Federal funds sold at December 31, 2015 and 2014 were $40,000 and $22,000 , respectively and are included in short-term investments on the Consolidated Balance Sheets. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 8,047 $ 2 $ (32 ) $ 8,017 Municipal obligations 4,278 12 (7 ) 4,283 Asset-backed securities 1,327 — (58 ) 1,269 Collateralized mortgage obligations - government issued 43,845 814 (116 ) 44,543 Collateralized mortgage obligations - government-sponsored enterprises 82,707 145 (416 ) 82,436 $ 140,204 $ 973 $ (629 ) $ 140,548 As of December 31, 2014 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 9,046 $ — $ (81 ) $ 8,965 Municipal obligations 573 5 — 578 Asset-backed securities 1,514 — (4 ) 1,510 Collateralized mortgage obligations - government issued 67,740 1,390 (256 ) 68,874 Collateralized mortgage obligations - government-sponsored enterprises 64,763 234 (226 ) 64,771 $ 143,636 $ 1,629 $ (567 ) $ 144,698 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 December 31, 2015 Amortized cost Gross Gross Estimated (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ 1,495 $ 1 $ (11 ) $ 1,485 Municipal obligations 16,038 332 (5 ) 16,365 Asset-backed securities — — — — Collateralized mortgage obligations - government issued 11,718 32 (41 ) 11,709 Collateralized mortgage obligations - government-sponsored enterprises 8,031 12 (44 ) 7,999 $ 37,282 $ 377 $ (101 ) $ 37,558 As of December 31, 2014 Amortized cost Gross Gross Estimated (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ 1,490 $ — $ (17 ) $ 1,473 Municipal obligations 16,088 85 (18 ) 16,155 Asset-backed securities — — — — Collateralized mortgage obligations - government issued 14,505 57 (31 ) 14,531 Collateralized mortgage obligations - government-sponsored enterprises 9,480 74 (19 ) 9,535 $ 41,563 $ 216 $ (85 ) $ 41,694 U.S. Government agency obligations - government-sponsored enterprises represent securities issued by the Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”). Collateralized mortgage obligations - government issued represent securities guaranteed by the Government National Mortgage Association (“GNMA”). Collateralized mortgage obligations — government-sponsored enterprises include securities guaranteed by FHLMC and the FNMA. Asset-backed securities represent securities issued by the Student Loan Marketing Association (“SLMA”) and are 97% guaranteed by the U.S. government. Municipal obligations include securities issued by various municipalities located primarily within the State of Wisconsin and are primarily general obligation bonds that are tax-exempt in nature. There were no sales of securities available-for-sale during the years ended December 31, 2015 and 2014 . At December 31, 2015 and 2014 , securities with a fair value of $23.0 million and $32.7 million , respectively, were pledged to secure interest rate swap contracts, outstanding FHLB advances, if any, and additional FHLB availability. The amortized cost and estimated fair value of securities by contractual maturity at December 31, 2015 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated (In Thousands) Due in one year or less $ — $ — $ — $ — Due in one year through five years 13,511 13,505 3,890 3,899 Due in five through ten years 88,690 88,902 13,643 13,950 Due in over ten years 38,003 38,141 19,749 19,709 $ 140,204 $ 140,548 $ 37,282 $ 37,558 The tables below show the Corporation’s gross unrealized losses and fair value of available-for-sale investments with unrealized losses aggregated by investment category and length of time that individual investments were in a continuous loss position at December 31, 2015 and 2014 . At December 31, 2015 , the Corporation owned 87 available-for-sale securities that were in an unrealized loss position. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. At December 31, 2015 , the Corporation held 11 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 years ended December 31, 2015 and 2014 . A summary of unrealized loss information for available-for-sale securities, categorized by security type follows: As of December 31, 2015 Less than 12 months 12 months or longer Total Fair value Unrealized Fair value Unrealized Fair value Unrealized (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 3,536 $ 13 $ 1,981 $ 19 $ 5,517 $ 32 Municipal obligations 2,403 7 — — 2,403 7 Asset-backed securities 1,269 58 — — 1,269 58 Collateralized mortgage obligations - government issued 3,373 19 5,687 97 9,060 116 Collateralized mortgage obligations - government-sponsored enterprises 59,992 373 1,717 43 61,709 416 $ 70,573 $ 470 $ 9,385 $ 159 $ 79,958 $ 629 As of December 31, 2014 Less than 12 months 12 months or longer Total Fair value Unrealized Fair value Unrealized Fair value Unrealized (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 3,486 $ 12 $ 5,479 $ 69 $ 8,965 $ 81 Municipal obligations — — — — — — Asset-backed securities $ — $ — $ 1,510 $ 4 $ 1,510 $ 4 Collateralized mortgage obligations - government issued 9,201 50 9,536 206 18,737 256 Collateralized mortgage obligations - government-sponsored enterprises 29,498 97 4,993 129 34,491 226 $ 42,185 $ 159 $ 21,518 $ 408 $ 63,703 $ 567 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 December 31, 2015 and 2014 . At December 31, 2015 , the Corporation held 14 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 three held-to-maturity securities that had been in a continuous loss position for twelve months or greater as of December 31, 2015 . 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 years ended December 31, 2015 and 2014 . A summary of unrecognized loss information for securities held-to-maturity, categorized by security type follows: As of December 31, 2015 Less than 12 months 12 months or longer Total Fair value Unrecognized Fair value Unrecognized Fair value Unrecognized (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ — $ — $ 1,000 $ 11 $ 1,000 $ 11 Municipal obligations 436 4 199 1 635 5 Collateralized mortgage obligations - government issued 6,518 41 — — 6,518 41 Collateralized mortgage obligations - government-sponsored enterprises 5,168 44 — — 5,168 44 $ 12,122 $ 89 $ 1,199 $ 12 $ 13,321 $ 101 As of December 31, 2014 Less than 12 months 12 months or longer Total Fair value Unrecognized Fair value Unrecognized Fair value Unrecognized (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ 1,490 $ 17 $ — $ — $ 1,490 $ 17 Municipal obligations 2,222 18 $ — $ — 2,222 18 Collateralized mortgage obligations - government issued 3,247 $ 31 $ — $ — 3,247 31 Collateralized mortgage obligations - government-sponsored enterprises $ 3,076 $ 19 $ — $ — 3,076 19 $ 10,035 $ 85 $ — $ — $ 10,035 $ 85 |
Loan and Lease Receivables, Imp
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2015 | |
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, including loans held for sale, consist of the following: December 31, December 31, (In Thousands) Commercial real estate Commercial real estate — owner occupied $ 176,322 $ 163,884 Commercial real estate — non-owner occupied 436,901 417,962 Construction and land development 160,404 121,160 Multi-family 80,254 72,578 1-4 family (1) 51,607 36,182 Total commercial real estate 905,488 811,766 Commercial and industrial (2) 473,592 416,654 Direct financing leases, net 31,093 34,165 Consumer and other Home equity and second mortgages 8,237 7,866 Other 16,319 11,341 Total consumer and other 24,556 19,207 Total gross loans and leases receivable 1,434,729 1,281,792 Less: Allowance for loan and lease losses 16,316 14,329 Deferred loan fees 1,062 1,025 Loans and leases receivable, net $ 1,417,351 $ 1,266,438 (1) Includes residential real estate loans held for sale totaling $1.3 million, as of December 31, 2015 and $1.3 million as of December 31, 2014. (2) Includes guaranteed portion of SBA loans held for sale totaling $1.4 million as of December 31, 2015. During the years ended December 31, 2015 and 2014 , $128.2 million and $29.1 million of loans were transferred to third parties, respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, including the requirements specific to loan participations, and therefore $128.2 million and $29.1 million during the years ended December 31, 2015 and 2014 , respectively, have been derecognized in the audited Consolidated Financial Statements. The Corporation has a continuing involvement in each of the loans by way of relationship management and servicing the loans; however, there are no further obligations to the third-party participant required of the Corporation, other than standard representations and warranties related to sold amounts, that would preclude the application of sale accounting treatment. Loan participations were transferred at their fair value and no gain or loss was recognized upon the transfer, as the participation interest was transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represent adequate compensation. Gain on sale of SBA loans was $4.0 million and $318,000 for the years ended December 31, 2015 and 2014. No gain on sale of SBA loans was recorded in 2013. The total amount of loan participations purchased on the Corporation’s Consolidated Balance Sheets as of December 31, 2015 and December 31, 2014 was $467,000 and $482,000 , respectively. The total amount of outstanding loans transferred to third parties as loan participations sold as of December 31, 2015 and December 31, 2014 was $169.2 million and $116.6 million , respectively, all of which were treated as a sale and derecognized under the applicable accounting guidance in effect at the time of the transfers of the financial assets. The Corporation’s continuing involvement with these loans is by way of partial ownership, relationship management and all servicing responsibilities. As of December 31, 2015 and December 31, 2014 , the total amount of the Corporation’s partial ownership of loans on the Corporation’s Consolidated Balance Sheets was $136.8 million and $96.4 million , respectively. As of December 31, 2015 , $1.8 million of loans in this participation sold portfolio were considered impaired as compared to $1.2 million as of December 31, 2014 . The Corporation does not share in the participant’s portion of the charge-offs. The Corporation sells residential real estate loans, servicing released, in the secondary market. The total principal amount of residential real estate loans sold during the year ended December 31, 2015 and 2014 was $32.6 million and $4.9 million , respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, and therefore all of the loans transferred during the year ended December 31, 2015 and 2014 were derecognized when sold in the unaudited Consolidated Financial Statements. The Corporation has a continuing involvement in each of the transactions by way of relationship management; however, there are no further obligations of the Corporation, other than standard representations and warranties related to the sold amount, that would preclude the application of sale accounting treatment. The loans were transferred at their fair value and the related gain was recognized as non-interest income upon the transfer in the unaudited Consolidated Financial Statements. ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer, applies to purchased loans with evidence of deterioration in credit quality since origination for which it is probable at acquisition that the Corporation will be unable to collect all contractually required payments are considered to be credit impaired. Purchased credit-impaired loans are initially recorded at fair value, which is estimated by discounting the cash flows expected to be collected at the acquisition date. Because the estimate of expected cash flows reflects an estimate of future credit losses expected to be incurred over the life of the loans, an allowance for credit losses is not recorded at the acquisition date. The excess of cash flows expected at acquisition over the estimated fair value, referred to as the accretable yield, is recognized in interest income over the remaining life of the loan on a level-yield basis, contingent on the subsequent evaluation of future expected cash flows. The difference between the contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. A subsequent decrease in the estimate of cash flows expected to be received on purchased credit-impaired loans generally results in the recognition of an allowance for credit losses. Subsequent increases in cash flows result in reversal of any nonaccretable difference (or allowance for loan and lease losses to the extent any has been recorded) with a positive impact on interest income recognized. The measurement of cash flows involves assumptions and judgments for interest rates, prepayments, default rates, loss severity, and collateral values. All of these factors are inherently subjective and significant changes in the cash flow estimates over the life of the loan can result. The following table reflects the contractually required payments receivable and fair value of the Corporation’s purchased credit impaired loans as of December 31, 2015 and 2014 : December 31, December 31, (In Thousands) Contractually required payments $ 5,291 $ 6,874 Fair value of credit impaired loans acquired $ 3,250 $ 4,025 The following table presents a rollforward of the accretable yield for the year ended December 31, 2015 and 2014 . December 31, December 31, (In Thousands) Accretable yield, beginning of period $ 676 $ 683 Accretion recognized in earnings (50 ) (7 ) Reclassification to nonaccretable difference for loans with changing cash flows (1) (60 ) — Changes in accretable yield for non-credit related changes in expected cash flows (2) (152 ) — Accretable yield, end of period $ 414 $ 676 (1) Represents changes in accretable yield for those loans that are driven primarily by credit performance. (2) Represents changes in accretable yield for those loans that are driven primarily by changes in actual and estimated payments. Certain of the Corporation’s executive officers, directors and their related interests are loan clients of the Banks. As of December 31, 2015 and 2014 , loans aggregating approximately $6.9 million and $4.4 million , respectively, were outstanding to such parties. New loans granted to such parties during the years ended December 31, 2015 and 2014 were approximately $3.9 million and $1.8 million and repayments on such loans were approximately $1.4 million and $392,000 , respectively. These loans were made in the ordinary course of business and on substantially the same terms as those prevailing at the time for comparable loans not related to the lender. None of these loans were considered impaired. The following information illustrates ending balances of the Corporation’s loan and lease portfolio, including impaired loans by class of receivable, and considering certain credit quality indicators as of December 31, 2015 and 2014 : Category As of December 31, 2015 I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 156,379 $ 7,654 $ 9,311 $ 2,978 $ 176,322 Commercial real estate — non-owner occupied 410,517 20,662 3,408 2,314 436,901 Construction and land development 151,508 3,092 874 4,930 160,404 Multi-family 79,368 884 — 2 80,254 1-4 family (1) 42,389 3,985 1,865 3,368 51,607 Total commercial real estate 840,161 36,277 15,458 13,592 905,488 Commercial and industrial (2) 431,598 7,139 25,706 9,149 473,592 Direct financing leases, net 29,514 1,013 528 38 31,093 Consumer and other: Home equity and second mortgages 7,497 — 141 599 8,237 Other 15,616 48 — 655 16,319 Total consumer and other 23,113 48 141 1,254 24,556 Total gross loans and leases receivable $ 1,324,386 $ 44,477 $ 41,833 $ 24,033 $ 1,434,729 Category as a % of total portfolio 92.30 % 3.10 % 2.92 % 1.68 % 100.00 % (1) Includes residential real estate loans held for sale totaling $1.3 million in Category I. (2) Includes guaranteed portion of SBA loans held for sale totaling $1.4 million in Category I. Category As of December 31, 2014 I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 131,094 $ 15,592 $ 16,621 $ 577 $ 163,884 Commercial real estate — non-owner occupied 378,671 20,823 17,498 970 417,962 Construction and land development 100,934 8,193 6,876 5,157 121,160 Multi-family 70,897 751 913 17 72,578 1-4 family (1) 25,997 5,278 3,336 1,571 36,182 Total commercial real estate 707,593 50,637 45,244 8,292 811,766 Commercial and industrial 383,755 18,524 12,026 2,349 416,654 Direct financing leases, net 32,756 1,120 289 — 34,165 Consumer and other: Home equity and second mortgages 7,039 205 189 433 7,866 Other 10,570 50 — 721 11,341 Total consumer and other 17,609 255 189 1,154 19,207 Total gross loans and leases receivable $ 1,141,713 $ 70,536 $ 57,748 $ 11,795 $ 1,281,792 Category as a % of total portfolio 89.07 % 5.50 % 4.51 % 0.92 % 100.00 % (1) Includes residential real estate loans held for sale totaling $1.3 million in Category I. 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 or a government guarantee 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 the Banks’ credit committees. Category III — Loans and leases in this category are identified by the Corporation’s business development officers and senior management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Banks. Category III loans and leases generally exhibit undesirable characteristics such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. However, management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category. Therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and credit 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 include those which have been placed on non-accrual as management has determined that it is unlikely that the Banks will receive the contractual principal and interest in accordance with the contractual terms of the agreement and loans and leases considered performing troubled debt restructurings. 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, or more frequently as circumstances warrant, for impaired loans and leases that are primarily secured by real estate or equipment. 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 $26.8 million and $27.1 million of loans and leases as Substandard as of December 31, 2015 and 2014 , respectively. No loans were considered Special Mention, Doubtful or Loss as of either December 31, 2015 and 2014 . The population of Substandard loans are a subset of Category III and Category IV loans. The delinquency aging of the loan and lease portfolio by class of receivable as of December 31, 2015 and 2014 were as follows: As of December 31, 2015 30-59 60-89 Greater Total past due Current Total loans (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 173,416 $ 173,416 Non-owner occupied — — — — 435,222 435,222 Construction and land development — — — — 155,675 155,675 Multi-family — — — — 80,252 80,252 1-4 family (1) 78 — — 78 48,918 48,996 Commercial & industrial (2) — — — — 464,456 464,456 Direct financing leases, net — — — — 31,055 31,055 Consumer and other: Home equity and second mortgages — — — — 7,695 7,695 Other — — — — 15,664 15,664 Total $ 78 $ — $ — $ 78 $ 1,412,353 $ 1,412,431 Non-accruing loans and leases Commercial real estate: Owner occupied $ — $ 473 $ — $ 473 $ 2,434 $ 2,907 Non-owner occupied — — — — 1,678 1,678 Construction and land development 397 — — 397 4,332 4,729 Multi-family — — — — 2 2 1-4 family 430 34 895 1,359 1,252 2,611 Commercial & industrial 2,077 — 564 2,641 6,495 9,136 Direct financing leases, net — — — — 38 38 Consumer and other: Home equity and second mortgages — — 250 250 292 542 Other — — 655 655 — 655 Total $ 2,904 $ 507 $ 2,364 $ 5,775 $ 16,523 $ 22,298 Total loans and leases Commercial real estate: Owner occupied $ — $ 473 $ — $ 473 $ 175,850 $ 176,323 Non-owner occupied — — — — 436,900 436,900 Construction and land development 397 — — 397 160,007 160,404 Multi-family — — — — 80,254 80,254 1-4 family 508 34 895 1,437 50,170 51,607 Commercial & industrial 2,077 — 564 2,641 470,951 473,592 Direct financing leases, net — — — — 31,093 31,093 Consumer and other: Home equity and second mortgages — — 250 250 7,987 8,237 Other — — 655 655 15,664 16,319 Total $ 2,982 $ 507 $ 2,364 $ 5,853 $ 1,428,876 $ 1,434,729 Percent of portfolio 0.21 % 0.04 % 0.16 % 0.41 % 99.59 % 100.00 % (1) Includes residential real estate loans held for sale totaling $1.3 million. (2) Includes guaranteed portion of SBA loans held for sale totaling $1.4 million. As of December 31, 2014 30-59 60-89 Greater Total past due Current Total loans (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 163,384 $ 163,384 Non-owner occupied — — — — 417,676 417,676 Construction and land development — — — — 116,228 116,228 Multi-family — — — — 72,561 72,561 1-4 family (1) — — — — 35,492 35,492 Commercial & industrial — — — — 414,336 414,336 Direct financing leases, net — — — — 34,165 34,165 Consumer and other: Home equity and second mortgages — — — — 7,537 7,537 Other — — — — 10,621 10,621 Total $ — $ — $ — $ — $ 1,272,000 $ 1,272,000 Non-accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 500 $ 500 Non-owner occupied — 215 — 215 71 286 Construction and land development — 193 — 193 4,739 4,932 Multi-family — — — — 17 17 1-4 family — 106 306 412 278 690 Commercial & industrial 364 146 736 1,246 1,072 2,318 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — 329 329 Other — — 720 720 — 720 Total $ 364 $ 660 $ 1,762 $ 2,786 $ 7,006 $ 9,792 Total loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 163,884 $ 163,884 Non-owner occupied — 215 — 215 417,747 417,962 Construction and land development — 193 — 193 120,967 121,160 Multi-family — — — — 72,578 72,578 1-4 family — 106 306 412 35,770 36,182 Commercial & industrial 364 146 736 1,246 415,408 416,654 Direct financing leases, net — — — — 34,165 34,165 Consumer and other: Home equity and second mortgages — — — — 7,866 7,866 Other — — 720 720 10,621 11,341 Total $ 364 $ 660 $ 1,762 $ 2,786 $ 1,279,006 $ 1,281,792 Percent of portfolio 0.03 % 0.05 % 0.14 % 0.22 % 99.78 % 100.00 % (1) Includes residential real estate loans held for sale totaling $1.3 million. The Corporation’s total impaired assets consisted of the following at December 31, 2015 and 2014 , respectively. December 31, December 31, (Dollars in Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 2,907 $ 500 Commercial real estate — non-owner occupied 1,678 286 Construction and land development 4,729 4,932 Multi-family 2 17 1-4 family 2,611 690 Total non-accrual commercial real estate 11,927 6,425 Commercial and industrial 9,136 2,318 Direct financing leases, net 38 — Consumer and other: Home equity and second mortgages 542 329 Other 655 720 Total non-accrual consumer and other loans 1,197 1,049 Total non-accrual loans and leases 22,298 9,792 Foreclosed properties, net 1,677 1,693 Total non-performing assets 23,975 11,485 Performing troubled debt restructurings 1,735 2,003 Total impaired assets $ 25,710 $ 13,488 December 31, December 31, Total non-accrual loans and leases to gross loans and leases 1.55 % 0.76 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 1.67 0.89 Total non-performing assets to total assets 1.34 0.70 Allowance for loan and lease losses to gross loans and leases 1.14 1.12 Allowance for loan and lease losses to non-accrual loans and leases 73.17 146.33 As of December 31, 2015 and December 31, 2014 , $16.2 million and $7.4 million of the non-accrual loans were considered troubled debt restructurings, respectively. As of December 31, 2015 , there were no unfunded commitments associated with troubled debt restructured loans and leases. As of December 31, 2015 As of December 31, 2014 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment (Dollars in Thousands) Troubled debt restructurings: Commercial real estate Commercial real estate — owner occupied 3 $ 1,209 $ 1,188 2 $ 624 $ 577 Commercial real estate — non-owner occupied 5 1,150 904 5 1,095 970 Construction and land development 3 6,034 4,593 4 6,260 5,157 Multi-family 1 184 2 1 184 17 1-4 family 15 2,035 1,869 16 2,119 1,368 Commercial and industrial 10 7,572 8,330 4 361 155 Consumer and other: Home equity and second mortgage 4 461 349 6 772 431 Other 1 2,076 655 2 2,080 721 Total 42 $ 20,721 $ 17,890 40 $ 13,495 $ 9,396 All loans and leases modified as a troubled debt restructuring are evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a default, is considered in the determination of an appropriate level of the allowance for loan and lease losses. As of December 31, 2015 and 2014 , our troubled debt restructurings grouped by type of concession were as follows: As of December 31, 2015 As of December 31, 2014 Number of Loans Post-Modification Recorded Investment Number of Loans Post-Modification Recorded Investment (Dollars in Thousands) Commercial real estate Extension of term 1 $ 24 1 $ 39 Interest rate concession 1 55 1 65 Combination of extension and interest rate concession 25 8,477 26 7,984 Commercial and industrial Combination of extension and interest rate concession 10 8,330 4 155 Consumer and other Extension of term 1 655 3 753 Combination of extension and interest rate concession 4 349 5 400 Total 42 $ 17,890 40 $ 9,396 The following represents additional information regarding the Corporation’s impaired loans and leases by class: Impaired Loans and Leases As of and for the Year Ended December 31, 2015 Recorded investment Unpaid principal balance Impairment reserve Average recorded investment (1) Foregone interest income Interest income recognized Net foregone interest income (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 2,164 $ 2,164 $ — $ 712 $ 53 $ 12 $ 41 Non-owner occupied 2,314 2,355 — 962 25 — 25 Construction and land development 4,533 7,203 — 4,807 133 — 133 Multi-family 2 369 — 10 27 — 27 1-4 family 2,423 2,486 — 1,604 82 4 78 Commercial and industrial 2,546 2,590 — 544 172 6 166 Direct financing leases, net 38 38 — 4 — — — Consumer and other: Home equity and second mortgages 500 500 — 390 23 63 (40 ) Other 655 1,321 — 688 82 — 82 Total $ 15,175 $ 19,026 $ — $ 9,721 $ 597 $ 85 $ 512 With impairment reserve recorded: Commercial real estate: Owner occupied $ 814 $ 814 $ 20 $ 215 $ 7 $ 2 $ 5 Non-owner occupied — — — — — — — Construction and land development 397 397 48 34 — — — Multi-family — — — — — — — 1-4 family 945 950 173 605 34 — 34 Commercial and industrial 6,603 6,603 847 810 102 — 102 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 99 99 25 58 10 — 10 Other — — — — — — — Total $ 8,858 $ 8,863 $ 1,113 $ 1,722 $ 153 $ 2 $ 151 Total: Commercial real estate: Owner occupied $ 2,978 $ 2,978 $ 20 $ 927 $ 60 $ 14 $ 46 Non-owner occupied 2,314 2,355 — 962 25 — 25 Construction and land development 4,930 7,600 48 4,841 133 — 133 Multi-family 2 369 — 10 27 — 27 1-4 family 3,368 3,436 173 2,209 116 4 112 Commercial and industrial 9,149 9,193 847 1,354 274 6 268 Direct financing leases, net 38 38 — 4 — — — Consumer and other: Home equity and second mortgages 599 599 25 448 33 63 (30 ) Other 655 1,321 — 688 82 — 82 Grand total $ 24,033 $ 27,889 $ 1,113 $ 11,443 $ 750 $ 87 $ 663 (1) Average recorded investment is calculated primarily using daily average balances. Impaired Loans and Leases As of and for the Year Ended December 31, 2014 Recorded Unpaid Impairment Average (1) Foregone Interest Net (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 577 $ 577 $ — $ 484 $ 30 $ 79 $ (49 ) Non-owner occupied 921 921 — 349 22 — 22 Construction and land development 5,157 7,828 — 5,285 155 — 155 Multi-family 17 384 — 24 53 — 53 1-4 family 1,181 1,218 — 380 15 12 3 Commercial and industrial 2,316 2,926 — 6,141 463 649 (186 ) Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 380 380 — 495 18 — 18 Other 721 1,389 — 768 87 — 87 Total $ 11,270 $ 15,623 $ — $ 13,926 $ 843 $ 740 $ 103 With impairment reserve recorded: Commercial real estate: Owner occupied $ — $ — $ — $ — $ — $ — $ — Non-owner occupied 49 89 49 52 4 — 4 Construction and land development — — — — — — — Multi-family — — — — — — — 1-4 family 390 390 155 405 18 — 18 Commercial and industrial 33 33 33 34 — — — Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 53 53 53 57 5 — 5 Other — — — — — — — Total $ 525 $ 565 $ 290 $ 548 $ 27 $ — $ 27 Total: Commercial real estate: Owner occupied $ 577 $ 577 $ — $ 484 $ 30 $ 79 $ (49 ) Non-owner occupied 970 1,010 49 401 26 — 26 Construction and land development 5,157 7,828 — 5,285 155 — 155 Multi-family 17 384 — 24 53 — 53 1-4 family 1,571 1,608 155 785 33 12 21 Commercial and industrial 2,349 2,959 33 6,175 463 649 (186 ) Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 433 433 53 552 23 — 23 Other 721 1,389 — 768 87 — 87 Grand total $ 11,795 $ 16,188 $ 290 $ 14,474 $ 870 $ 740 $ 130 (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 investment Unpaid principal balance Impairment reserve Average recorded investment (1) Foregone interest income Interest income recognized Net foregone 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 $3.9 million , $4.4 million and $4.0 million as of December 31, 2015 , 2014 and 2013 , respectively, represents partial charge-offs resulting from confirmed losses due to the value of the collateral securing the loans and leases being less than the carrying values of the loans and leases. Impaired loans and leases also included $1.7 million , $2.0 million and $371,000 of loans and leases as of December 31, 2015 , 2014 and 2013 , respectively, that were performing troubled debt restructurings, and thus, while not on non-accrual, were reported as impaired due to the concession in terms. When a loan is placed on non-accrual, interest accruals are discontinued and previously accrued but uncollected interest is deducted from interest income. If collectability of contractual principal and interest payments is in doubt, cash payments collected on non-accrual loans are first applied to principal. Foregone interest represents the interest that was contractually due on the note but not received or recorded. To the extent the amount of principal on a non-accrual note is fully collected and additional cash is received, the Corporation will recognize interest income. To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the loan and lease portfolio by segments and risk ratings. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. A summary of the activity in the allowance for loan and lease losses by portfolio segment is as follows: As of and for the Year Ended December 31, 2015 Commercial real estate Commercial and industrial loans and leases Consumer and other Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 8,619 $ 5,492 $ 218 $ 14,329 Charge-offs (793 ) (711 ) (9 ) (1,513 ) Recoveries 104 6 4 114 Provision 3,290 (400 ) 496 3,386 Ending balance $ 11,220 $ 4,387 $ 709 $ 16,316 Ending balance: individually evaluated for impairment $ 240 $ 847 $ 26 $ 1,113 Ending balance: collectively evaluated for impairment $ 10,980 $ 3,540 $ 683 $ 15,203 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and lease receivables: Ending balance, gross $ 905,488 $ 504,685 $ 24,556 $ 1,434,729 Ending balance: individually evaluated for impairment $ 10,849 $ 8,942 $ 1,061 $ 20,852 Ending balance: collectively evaluated for impairment $ 891,897 $ 495,497 $ 23,302 $ 1,410,696 Ending balance: loans acquired with deteriorated credit quality $ 2,742 $ 246 $ 193 $ 3,181 Allowance as % of gross loans and leases 1.24 % 0.87 % 2.89 % 1.14 % As of and for the Year Ended December 31, 2014 Commercial real estate Commercial and industrial loans and leases Consumer and other Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 9,055 $ 4 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Leasehold Improvements and Equipment | Premises and Equipment A summary of premises and equipment at December 31, 2015 and 2014 is as follows: As of December 31, 2015 2014 (In Thousands) Land $ 650 $ 650 Building and leasehold improvements 2,879 2,776 Furniture and equipment 4,893 4,339 Construction and purchases in progress 28 52 8,450 7,817 Less: accumulated depreciation (4,496 ) (3,874 ) Total premises and equipment, net $ 3,954 $ 3,943 Depreciation expense was $746,000 , $385,000 and $313,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | Goodwill and Other Intangible Assets Goodwill is not amortized. Goodwill, as well as intangible assets, are subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of Alterra below its carrying amount (including goodwill). At December 31, 2015 and 2014 , the Corporation had goodwill of $10.7 million . The Corporation conducted its most recent annual impairment testing in July 2015, utilizing a qualitative assessment. Management evaluated several factors to perform the qualitative assessment, including but not limited to: macroeconomic conditions, industry and market considerations, cost factors, overall financial performance of Alterra (both current and projected), other Alterra-specific events, and changes in the Corporation’s common stock price. Based on these assessments, management concluded that the 2015 annual qualitative impairment assessment indicated that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for Alterra. Therefore, a step one quantitative analysis was not required. There were no events since the July 2015 impairment testing that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in 2015 and 2014 , and no goodwill recorded in 2013 . The Corporation has intangible assets that are amortized consisting of loan servicing rights and core deposit intangibles. Loan servicing rights are recognized separately when they are acquired through sales of SBA loans. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Loan servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The estimated fair value of the Corporation’s loan servicing asset was $1.6 million and $943,000 as of December 31, 2015 and 2014 , respectively. This servicing asset represents the servicing rights retained upon sale of the guaranteed portion of certain SBA loans. The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. For the year ended December 31, 2015 and 2014 , loan servicing asset amortization totaled $197,000 and $24,000 , respectively. The Corporation had no loan servicing asset outstanding in 2013 . Changes in the gross carrying amount, accumulated amortization and net book value of core deposit intangibles were as follows: Year Ended December 31, 2015 2014 2013 (In Thousands) Core deposit intangibles: Gross carrying amount $ 347 $ 347 $ — Less: accumulated amortization (83 ) (12 ) — Net book value $ 264 $ 335 $ — Amortization during the period $ (71 ) $ (12 ) $ — Estimated amortization expense of core deposit intangibles for fiscal years 2016 through 2020 are as follows: Core deposit intangibles (In Thousands) Estimate for the year ended December 31, 2016 $ 62 2017 54 2018 47 2019 40 2020 35 Thereafter 26 $ 264 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The Corporation is a limited partner in several limited partnership investments. The Corporation is not the general partner, does not have controlling ownership, and is not the primary variable interest holder in any of these limited partnerships. The Corporation’s share of the partnerships’ income or loss included in the Consolidated Statements of Income for the years ended December 31, 2015 , 2014 and 2013 was income of $481,000 and $774,000 , and a loss of $437,000 , respectively. The Corporation had an equity investment in Aldine Capital Fund, LP, a mezzanine fund, of $1.0 million and $1.1 million recorded as of December 31, 2015 and 2014 , respectively. The Corporation had a remaining commitment to provide funds of $960,000 at December 31, 2015 . The Corporation’s equity investment in Aldine Capital Fund II, LP, also a mezzanine fund, totaled $2.2 million and $2.1 million as of December 31, 2015 and 2014 , respectively. The Corporation had a remaining commitment to provide funds of $2.8 million at December 31, 2015 . The Corporation invested in a community development entity (“CDE”) through Rimrock Road Investment Fund LLC (“Rimrock”), a wholly-owned subsidiary of FBB, to develop and operate a real estate project located in a low-income community. At December 31, 2015 and 2014 , Rimrock had one CDE investment, with a net carrying value of $7.5 million . Rimrock did not have any outstanding CDE investments in 2013 . Due to the Corporation’s inability to exercise any significant influence over the investment in the qualified CDE, it is accounted for using the cost method. The investment provides federal new market tax credits over a seven-year credit allowance period. In each of the first three years, credits totaling five percent of the original investment are allowed on the credit allowance dates and for the final four years, credits totaling six percent of the original investment are allowed on the credit allowance dates. Rimrock must be invested in the qualified CDE on each of the credit allowance dates during the seven-year period to utilize the tax credits. If the CDE ceases to qualify during the seven-year period, the credits may be denied for any credit allowance date and a portion of the credits previously taken may be subject to recapture with interest. The investment in the CDE cannot be redeemed before the end of the seven-year period. The remaining federal new market tax credit to be utilized over a maximum of seven years was $2.2 million as of December 31, 2015 . The Corporation’s usage of the federal new market tax credit was approximately $375,000 during both 2015 and 2014. No federal new market tax credits were used in 2013 . In 2015, the Corporation also invested in a development entity through BOC Investment, LLC (“BOC”), a wholly-owned subsidiary of FBB, to acquire, rehabilitate and operate a historic building in Madison, Wisconsin. At December 31, 2015 , the net carrying value of the investment was $578,000 . The aggregate capital contributions to the project will be an amount not exceeding $3.5 million . The investment provides federal historic tax credits upon the completion of the restoration project. No federal historic tax credits were used in 2015 . The Corporation is the sole owner of $315,000 of common securities issued by FBFS Statutory Trust II, a Delaware business trust (“Trust II”). The purpose of Trust II was to complete the sale of $10.0 million of 10.50% fixed rate trust preferred securities. Trust II, a wholly owned subsidiary of the Corporation, was not consolidated into the financial statements of the Corporation. The investment in Trust II of $315,000 as of December 31, 2015 and 2014 is included in accrued interest receivable and other assets. A summary of accrued interest receivable and other assets is as follows: As of December 31, 2015 2014 (In Thousands) Accrued interest receivable $ 4,412 $ 3,932 Deferred tax assets, net 2,633 3,603 Investment in limited partnerships 3,215 3,193 Investment in community development entity 7,500 7,500 Investment in historic development entity 578 — Investment in Trust II 315 315 Fair value of interest rate swaps 552 575 Prepaid expenses 2,175 2,217 Other 3,502 4,882 Total accrued interest receivable and other assets $ 24,882 $ 26,217 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of deposits at December 31, 2015 and 2014 was as follows. Weighted average balances represent year-to-date averages. December 31, 2015 December 31, 2014 Balance Weighted average balance Weighted average rate Balance Weighted average balance Weighted average rate (Dollars in Thousands) Non-interest-bearing transaction accounts $ 231,199 $ 211,945 — % $ 204,328 $ 154,687 — % Interest-bearing transaction accounts 165,921 125,558 0.24 104,199 83,508 0.22 Money market accounts 612,642 602,842 0.55 575,766 493,322 0.52 Certificates of deposit 79,986 106,177 0.78 126,635 60,284 0.89 Wholesale deposits 487,483 450,460 1.43 427,340 416,202 1.49 Total deposits $ 1,577,231 $ 1,496,982 0.73 $ 1,438,268 $ 1,208,003 0.78 A summary of annual maturities of certificates of deposit outstanding, including wholesale deposits, at December 31, 2015 follows: (In Thousands) Maturities during the year ended December 31, 2016 $ 190,305 2017 103,109 2018 87,074 2019 66,751 2020 80,606 Thereafter 39,624 $ 567,469 Deposits include approximately $11.5 million and $22.6 million of certificates of deposit, including wholesale deposits, which are denominated in amounts of $250,000 or more at December 31, 2015 and 2014 , respectively. |
FHLB Advances, Other Borrowings
FHLB Advances, Other Borrowings and Junior Subordinated Notes | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
FHLB Advances, Other Borrowings and Junior Subordinated Notes | FHLB Advances, Other Borrowings and Junior Subordinated Notes The composition of borrowed funds at December 31, 2015 and 2014 was as follows. Weighted average balances represent year-to-date averages. December 31, 2015 December 31, 2014 Balance Weighted average balance Weighted average rate Balance Weighted average balance Weighted average rate (Dollars in Thousands) Federal funds purchased $ — $ 237 0.86 % $ — $ 237 0.82 % FHLB advances and other borrowings 9,790 15,457 1.14 10,058 5,093 0.56 Line of credit 2,510 1,619 3.18 1,010 13 3.30 Subordinated notes payable 22,926 22,926 6.98 22,926 13,362 7.07 Junior subordinated notes 10,315 10,315 10.78 10,315 10,315 10.78 $ 45,541 $ 50,554 5.84 $ 44,309 $ 29,020 7.24 Short-term borrowings $ 7,010 $ 2,010 Long-term borrowings 38,531 42,299 $ 45,541 $ 44,309 The Corporation’s subsidiary banks, FBB and FBB-Milwaukee, are members of the FHLB of Chicago while Alterra is a member of the FHLB of Topeka. Accordingly all three subsidiary banks of the Corporation are permitted to obtain advances. The Corporation has a $78.1 million FHLB line of credit available for advances and open line borrowings which is collateralized by mortgage-related securities, unencumbered first mortgage loans and secured small business loans as noted below. At December 31, 2015 , $70.1 million of this line remained unused. There were no advances outstanding on the Corporation’s open line at December 31, 2015 and 2014 . There were $8.2 million of Term FHLB advances outstanding at December 31, 2015 with stated fixed interest rates ranging from 0.89% to 4.96% compared to $9.4 million of Term FHLB advances outstanding at December 31, 2014 with stated fixed interest rate ranging from 0.71% to 4.96% . The Term FHLB advances outstanding at December 31, 2015 are due at various dates through December 2017. The Corporation is required to maintain, as collateral, mortgage-related securities and unencumbered first mortgage loans and secured small business loans in its portfolio aggregating at least the amount of outstanding advances from the FHLB. Loans totaling approximately $75.0 million and $85.8 million and collateralized mortgage obligations totaling approximately $21.7 million and $30.7 million were pledged as collateral for FHLB advances and unused available credit at December 31, 2015 and 2014 , respectively. The Corporation has a senior line of credit with a third-party financial institution of $10.5 million . As of December 31, 2015 , the line of credit carried an interest rate of LIBOR + 2.75% with a floor of 3.125% and had certain performance debt covenants of which the Corporation was in compliance. The Corporation pays a commitment fee on this senior line of credit. For the year ended December 31, 2015 the Corporation incurred $13,000 additional interest expense due to this fee. Prior to February 19, 2015, the Corporation paid an unused line fee on this senior line of credit. For the years ended December 31, 2014 and 2013 , the Corporation incurred $13,000 of additional interest expense due to this fee. On February 19, 2016 , the credit line was renewed for one additional year with pricing terms of LIBOR + 2.75% with an interest rate floor of 3.125% and a maturity date of February 19, 2017 . As December 31, 2015 , the outstanding balance on the line of credit was $2.5 million . The Corporation has subordinated notes payable. At December 31, 2015 and 2014 , the amount of subordinated notes payable outstanding was $22.9 million . The subordinated notes payable qualify for Tier 2 capital. At December 31, 2015 , $1.7 million of the subordinated notes bore an interest rate of LIBOR + 4.75% with an interest rate floor of 6.00% , $6.2 million bore a fixed interest rate of 7.50% and $15.0 million bore a fixed interest rate of 6.50% . There are no debt covenants on the subordinated notes payable. $1.7 million of the subordinated notes outstanding as of December 31, 2015 were held by a third-party financial institution and mature on May 15, 2021 . $6.2 million of the subordinated notes consists of notes which the Corporation offered and sold to certain accredited investors in 2012. The notes mature on January 15, 2022 and bear a fixed interest rate of 7.50% per year for their entire term. The Corporation may, at its option, redeem the notes, in whole or part, at any time after the fifth anniversary of issuance. In September 2008 , Trust II completed the sale of $10.0 million of 10.50% fixed rate trust preferred securities (“Preferred Securities”). Trust II also issued common securities of $315,000 . Trust II used the proceeds from the offering to purchase $10.3 million of 10.50% Junior Subordinated Notes (“Notes”) of the Corporation. The Preferred Securities are mandatorily redeemable upon the maturity of the Notes on September 26, 2038 . The Preferred Securities qualify under the risk-based capital guidelines as Tier 1 capital for regulatory purposes. Per the provisions of the Dodd-Frank Act, bank holding companies with total assets of less than $15 billion are not required to phase out trust preferred securities as an element of Tier 1 capital as other, larger institutions must. The Corporation used the proceeds from the sale of the Notes for general corporate purposes including providing additional capital to its subsidiaries. Debt issuance costs of approximately $428,000 were capitalized in 2008 and are amortizing over the life of the Notes as an adjustment to interest expense. As of December 31, 2015 , $324,000 of debt issuance costs remain reflected in other assets on the Consolidated Balance Sheets. The Corporation has the right to redeem the Notes at each interest payment date on or after September 26, 2013 . The Corporation also has the right to redeem the Notes, in whole but not in part, after the occurrence of certain special events. Special events are limited to: (1) a change in capital treatment resulting in the inability of the Corporation to include the Notes in Tier 1 capital, (2) a change in laws or regulations that could require Trust II to register as an investment company under the Investment Company Act of 1940, as amended; and (3) a change in laws or regulations that would require Trust II to pay income tax with respect to interest received on the Notes or, prohibit the Corporation from deducting the interest payable by the Corporation on the Notes or result in greater than a de minimis amount of taxes for Trust II. Trust II, a wholly owned subsidiary of the Corporation, was not consolidated into the financial statements of the Corporation. Therefore, the Corporation presents in its Consolidated Financial Statements junior subordinated notes as a liability and its investment in Trust II as a component of other assets. |
Stockholders' Equity and Regula
Stockholders' Equity and Regulatory Capital | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Stockholders' Equity and Regulatory Capital | Stockholders’ Equity and Regulatory Capital On June 5, 2008, in connection with the implementation of the Shareholder Rights Plan dated the same date, the Board of Directors declared a dividend of one common share purchase right for each outstanding share of common stock, $0.01 par value per share (common shares), of the Corporation. The dividend was paid on July 15, 2008. Each right entitles the registered holder to purchase from the Corporation one-half of one common share, at a price of $42.50 per full common share (equivalent to $21.25 for each one-half of a common share), subject to adjustment. The rights will be exercisable only if a person or group acquires 15% or more of the Corporation’s common stock or announces a tender offer for such stock. Under conditions described in the Shareholder Rights Plan, holders of rights may acquire additional shares of the Corporation’s common stock. The value of shares acquired under the plan would have a market value of two times the then-current per share purchase price. The rights will expire on June 5, 2018 if not renewed. The Corporation and the Banks are subject to various regulatory capital requirements administered by Federal, State of Wisconsin and State of Kansas banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Banks’ assets, liabilities and certain off-balance-sheet items as calculated under regulatory practices. The Corporation’s and the Banks’ capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Corporation continuously reviews and updates when appropriate its Capital and Liquidity Action Plan (the “Capital Plan”), which is designed to help ensure appropriate capital adequacy, to plan for future capital needs and to ensure that the Corporation serves as a source of financial strength to the Banks. The Corporation’s and the Banks’ Boards of Directors and management teams adhere to the appropriate regulatory guidelines on decisions which affect their capital position, including but not limited to, decisions relating to the payment of dividends and increasing indebtedness. As a bank holding company, the Corporation’s ability to pay dividends is affected by the policies and enforcement powers of the Federal Reserve. Federal Reserve guidance urges companies to strongly consider eliminating, deferring or significantly reducing dividends if: (i) net income available to common shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividend; (ii) the prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current prospective financial condition; or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital ratios. Management intends, when appropriate under regulatory guidelines, to consult with the Federal Reserve Bank of Chicago and provide it with information on the Corporation’s then-current and prospective earnings and capital position in advance of declaring any cash dividends. The Banks are also subject to certain legal, regulatory and other restrictions on their ability to pay dividends to the Corporation. As a bank holding company, the payment of dividends by the Banks to the Corporation is one of the sources of funds the Corporation could use to pay dividends, if any, in the future and to make other payments. Future dividend decisions by the Banks and the Corporation will continue to be subject to compliance with various legal, regulatory and other restrictions as defined from time to time. Qualitative measures established by regulation to ensure capital adequacy require the Corporation and the Banks to maintain minimum amounts and ratios of Total, common equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. These risk-based capital requirements presently address credit risk related to both recorded and off-balance-sheet commitments and obligations. Management believes, as of December 31, 2015 , that the Corporation and the Banks met all applicable capital adequacy requirements. In July 2013, the FRB and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision’s (“BCBS”) capital guidelines for U.S. banks. These rules are applicable to all financial institutions that are subject to minimum capital requirements, including federal and state banks and savings and loan associations, as well as bank and savings and loan holding companies other than “small bank holding companies” (generally non-publicly traded bank holding companies with consolidated assets of less than $1 billion). Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Corporation. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. The rules also permit banking organizations with less than $15 billion to retain, through one-time election, the existing treatment for accumulated other comprehensive income, which would not affect regulatory capital. The Corporation elected to retain this treatment, which reduces the volatility of regulatory capital ratios. A new capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. The phase-in period for the final rules became effective for the Corporation on January 1, 2015, with full compliance with all of the final rules’ requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. As of December 31, 2015 , the Corporation’s and the Bank’s capital levels remained characterized as well capitalized under the new rules. The following table summarizes the Corporation’s and Banks’ capital ratios and the ratios required by their federal regulators at December 31, 2015 and 2014 , 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 December 31, 2015 Total capital (to risk-weighted assets) Consolidated $ 189,163 11.11 % $ 136,208 8.00 % N/A N/A First Business Bank 141,388 11.12 101,754 8.00 $ 127,193 10.00 % First Business Bank – Milwaukee 20,931 12.03 13,914 8.00 17,392 10.00 Alterra Bank 30,300 11.39 21,279 8.00 26,598 10.00 Tier 1 capital (to risk-weighted assets) Consolidated $ 149,920 8.81 $ 102,156 6.00 N/A N/A First Business Bank 128,852 10.13 76,316 6.00 $ 101,754 8.00 First Business Bank – Milwaukee 19,172 11.02 10,435 6.00 13,914 8.00 Alterra Bank 28,278 10.63 15,959 6.00 21,279 8.00 Common equity tier 1 capital (to risk-weighted assets) Consolidated $ 139,920 8.22 $ 76,617 4.50 N/A N/A First Business Bank 128,852 10.13 57,237 4.50 $ 110,669 6.50 First Business Bank — Milwaukee 19,172 11.02 7,826 4.50 82,675 6.50 Alterra Bank 28,278 10.63 11,969 4.50 11,305 6.50 Tier 1 capital (to average assets) Consolidated $ 149,920 8.63 $ 69,466 4.00 N/A N/A First Business Bank 128,852 10.44 49,359 4.00 $ 61,698 5.00 First Business Bank – Milwaukee 19,172 7.81 9,821 4.00 12,276 5.00 Alterra Bank 28,278 9.89 11,441 4.00 14,301 5.00 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, 2014 Total capital (to risk-weighted assets) Consolidated $ 173,263 12.13 % $ 114,253 8.00 % N/A N/A First Business Bank 131,411 12.19 86,272 8.00 $ 107,841 10.00 % First Business Bank – Milwaukee 19,128 12.47 12,274 8.00 15,343 10.00 Tier 1 capital (to risk-weighted assets) Consolidated $ 136,008 9.52 $ 57,127 4.00 N/A N/A First Business Bank 118,907 11.03 43,136 4.00 $ 64,704 6.00 First Business Bank – Milwaukee 17,641 11.50 6,137 4.00 9,206 6.00 Tier 1 capital (to average assets) Consolidated $ 136,008 8.71 $ 62,490 4.00 N/A N/A First Business Bank 118,907 10.13 46,960 4.00 $ 58,700 5.00 First Business Bank – Milwaukee 17,641 7.90 8,935 4.00 11,169 5.00 The following table reconciles stockholders’ equity to federal regulatory capital at December 31, 2015 and 2014 , respectively. As of December 31, 2015 2014 (In Thousands) Stockholders’ equity of the Corporation $ 150,832 $ 137,748 Unrealized and accumulated (gains) losses on specific items 80 (652 ) Disallowed servicing assets and purchased credit card relationships (370 ) (94 ) Disallowed goodwill and other intangibles (10,622 ) (10,994 ) Trust preferred securities 10,000 10,000 Tier 1 capital 149,920 136,008 Allowable general valuation allowances and subordinated debt 39,243 37,255 Risk-based capital $ 189,163 $ 173,263 |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
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. Effective November 1, 2014, the Corporation successfully completed the acquisition of Aslin Group, Inc. and Alterra. Under the terms of the definitive agreement, the Corporation issued 720,162 shares, on a post-split basis, to Aslin Group, Inc. shareholders as the stock portion of the consideration paid. This stock issuance impacted the Corporation’s earnings per share by increasing the number of shares outstanding. For the year ended December 31, 2015 , there were no average anti-dilutive employee share-based awards. For the year ended December 31, 2014 , there were four average anti-dilutive employee share-based awards. All shares and earnings per share amounts have been adjusted to reflect the 2-for-1 stock split in the form of a 100% stock dividend completed in August 2015. For the Year Ended December 31, 2015 2014 2013 (Dollars in Thousands, Except Share Data) Basic earnings per common share Net income $ 16,514 $ 14,139 $ 13,746 Less: earnings allocated to participating securities 273 294 331 Basic earnings allocated to common shareholders $ 16,241 $ 13,845 $ 13,415 Weighted-average common shares outstanding, excluding participating securities 8,549,176 7,869,956 7,664,620 Basic earnings per common share $ 1.90 $ 1.76 $ 1.75 Diluted earnings per common share Earnings allocated to common shareholders $ 16,241 $ 13,845 $ 13,415 Reallocation of undistributed earnings — 1 2 Diluted earnings allocated to common shareholders $ 16,241 $ 13,846 $ 13,417 Weighted-average common shares outstanding, excluding participating securities 8,549,176 7,869,956 7,664,620 Dilutive effect of share-based awards 1,146 36,811 30,168 Weighted-average diluted common shares outstanding, excluding participating securities 8,550,322 7,906,767 7,694,788 Diluted earnings per common share $ 1.90 $ 1.75 $ 1.74 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Corporation adopted the 2012 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2012. The Plan is administered by the Compensation Committee of the Board of Directors of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options (together, “Stock Options”), restricted stock, restricted stock units and dividend equivalent units, and any other type of award permitted by the Plan. As of December 31, 2015 , 311,445 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 were granted since the Corporation became a reporting company under the Securities Exchange Act of 1934 and no Stock Options have been modified, repurchased or canceled since such time. For that reason, no stock-based compensation related to Stock Options was recognized in the Consolidated Financial Statements for the years ended December 31, 2015 , 2014 and 2013 . As of December 31, 2015 , all Stock Options granted and not previously forfeited had vested. The benefits of tax deductions as a result of disqualifying dispositions upon exercise of stock options are recognized as a financing cash flow activity. The following table represents a summary of Stock Options activity for the periods indicated. For the Years Ended December 31, 2015 2014 2013 Options Weighted average price Options Weighted average price Options Weighted Outstanding at beginning of year 24,000 $ 12.50 102,000 $ 12.12 248,068 $ 11.22 Granted — — — — — — Exercised (24,000 ) 12.50 (78,000 ) 12.00 (139,368 ) 10.57 Expired — — — — (6,700 ) 11.00 Forfeited — — — — — — Outstanding at end of year — — 24,000 12.50 102,000 12.12 Options exercisable at end of year — — 24,000 12.50 102,000 12.12 Restricted Stock Under the Plan, the Corporation may grant restricted shares to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While the restricted shares are subject to forfeiture, the participant may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. The restricted shares granted under the Plan are subject to graded vesting. Compensation expense is recognized over the requisite service period of generally four years for the entire award on a straight-line basis. Upon vesting of restricted share awards, the benefit of tax deductions in excess of recognized compensation expense is recognized as a financing cash flow activity. Restricted share activity for the years ended December 31, 2015 , 2014 and 2013 was as follows: For the Year Ended December 31, 2015 2014 2013 Number of restricted shares Weighted average grant-date fair value Number of restricted shares Weighted average grant-date fair value Number of Weighted Nonvested balance at beginning of year 154,998 $ 16.97 169,418 $ 11.55 189,012 $ 9.10 Granted 53,790 22.52 64,522 22.49 50,060 16.50 Vested (64,874 ) 15.23 (78,942 ) 9.86 (69,654 ) 8.44 Forfeited (8,443 ) 15.03 — — — — Nonvested balance as of end of year 135,471 20.13 154,998 16.97 169,418 11.55 As of December 31, 2015 , $2.3 million of deferred compensation expense was included in additional paid-in capital in the Consolidated Balance Sheets related to unvested restricted shares which the Corporation expects to recognize over approximately 2.8 years. As of December 31, 2015 , all restricted shares that vested were delivered. For the years ended December 31, 2015 , 2014 and 2013 , share-based compensation expense included in the Consolidated Statements of Income was as follows: For the Year Ended December 31, 2015 2014 2013 (In Thousands) Share-based compensation expense $ 1,063 $ 887 $ 660 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Corporation maintains a contributory 401(k) defined contribution plan covering substantially all employees. The Corporation matches 100% of amounts contributed by each participating employee up to 3.0% of the employee’s compensation. The Corporation may also make discretionary contributions up to an additional 6.0% of salary. Contributions are expensed in the period incurred and recorded in compensation expense in the Consolidated Statements of Income. The Corporation made a matching contribution of 3.0% to all eligible employees which totaled $573,000 , $398,000 and $348,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. Discretionary contributions of 3.3% , or $549,000 , 4.7% , or $632,000 , and 4.6% , or $533,000 , were made in 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , 2014 and 2013 , the Corporation had a deferred compensation plan under which it provided contributions to supplement the retirement income of one executive. Under the terms of the plan, benefits to be received are generally payable within six months of the date of the termination of employment with the Corporation. The expense associated with the deferred compensation plan in 2015 , 2014 and 2013 was $116,000 , $101,000 and $81,000 , respectively. The present value of future payments under the remaining plan of $863,000 and $747,000 at December 31, 2015 and 2014 , respectively, is included in other liabilities. The Corporation owned life insurance policies on the life of the executive covered by the deferred compensation plan, which had cash surrender values and death benefits of approximately $2.2 million and $5.8 million , respectively, at December 31, 2015 and cash surrender values and death benefits of approximately $2.1 million and $5.7 million , respectively, at December 31, 2014 . The remaining balance of the cash surrender value of bank-owned life insurance of $26.1 million and $25.2 million as of December 31, 2015 and 2014 , respectively, is related to policies on a number of then-qualified individuals affiliated with the Banks. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | Leases The Corporation and FBB occupy space in Madison, WI under an operating lease agreement that expires on July 7, 2028 . FBB has five loan production offices in Appleton, Oshkosh, Green Bay, Manitowoc and Kenosha, Wisconsin that occupy office space under separate operating lease agreements that expire on various dates between July 2016 and January 2018 . FBB – Milwaukee occupies office space under an operating lease agreement that expires on November 30, 2020 . Alterra occupies office space in Leawood, KS under an operating lease agreement that expires on May 31, 2023 . Alterra also owns a branch location in Overland Park, KS. The Corporation’s total rent expense was $1.7 million , $1.3 million and $1.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Rent expense is recognized on a straight-line basis. The Corporation also leases other office equipment. Rental expense for these operating leases was $109,000 , $37,000 and $29,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. Future minimum lease payments for noncancelable operating leases for each of the five succeeding years and thereafter are as follows: (In Thousands) 2016 $ 1,227 2017 1,089 2018 1,030 2019 1,044 2020 1,036 Thereafter 5,518 $ 10,944 |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Other Operating Expenses [Abstract] | |
Other Income and Other Expense Disclosure | Other Operating Expenses A summary of other operating expenses for the years ended December 31, 2015 , 2014 and 2013 is as follows: Year Ended December 31, 2015 2014 2013 (In Thousands) Endowment to First Business Charitable Foundation $ — $ — $ 1,300 General and administrative expenses 1,759 1,024 938 Travel and other employee expenses 1,277 1,069 877 Computer software expenses 1,649 886 677 Partnership (income) loss (481 ) (774 ) 437 Foreclosed properties expenses 52 5 185 Other expenses 295 202 240 Total other operating expenses $ 4,551 $ 2,412 $ 4,654 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense applicable to income for the years ended December 31, 2015 , 2014 and 2013 consists of the following: Year Ended December 31, 2015 2014 2013 (In Thousands) Current: Federal $ 5,881 $ 4,235 $ 3,605 State 1,338 1,459 1,356 Current tax expense 7,219 5,694 4,961 Deferred: Federal 1,036 1,299 2,257 State 122 90 171 Deferred tax expense (benefit) 1,158 1,389 2,428 Total income tax expense $ 8,377 $ 7,083 $ 7,389 Deferred income tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax basis. Net deferred tax assets are included in other assets in the consolidated balance sheets. The significant components of the Corporation’s deferred tax assets and liabilities are as follows: At December 31, 2015 2014 (In Thousands) Deferred tax assets: Allowance for loan and lease losses $ 6,422 $ 5,501 Excess book basis over tax basis for net assets acquired 697 2,082 Deferred compensation 1,305 1,332 State net operating loss carryforwards 666 694 Write-down of foreclosed properties 14 1 Non-accrual loan interest 813 751 Capital loss carryforwards 33 32 Unrealized loss on securities 50 — Other 328 305 Total deferred tax assets before valuation allowance 10,328 10,698 Valuation allowance (68 ) (68 ) Total deferred tax assets 10,260 10,630 Deferred tax liabilities: Leasing and fixed asset activities 6,878 6,393 Loan servicing asset 612 364 Unrealized gain on securities — 137 Other 137 133 Total deferred tax liabilities 7,627 7,027 Net deferred tax asset $ 2,633 $ 3,603 The tax effects of unrealized gains and losses on derivative instruments and unrealized gains and losses on securities are components of other comprehensive income. A reconciliation of the change in net deferred tax assets to deferred tax expense follows: At December 31, 2015 2014 2013 (In Thousands) Change in net deferred tax assets $ (970 ) $ (119 ) $ (861 ) Deferred taxes allocated to other comprehensive income (188 ) 352 (1,567 ) Acquired deferred tax assets — (1,622 ) — Deferred income tax (expense) benefit $ (1,158 ) $ (1,389 ) $ (2,428 ) Realization of the deferred tax asset over time is dependent upon the Corporation generating sufficient taxable earnings in future periods. In making its determination that the realization of the deferred tax was more likely than not, the Corporation gave consideration to a number of factors including its recent earnings history, its expected earnings in the future, appropriate tax planning strategies and expiration dates associated with operating loss carry forwards. The Corporation had state net operating loss carryforwards of approximately $12.9 million and $13.4 million at December 31, 2015 and 2014 , respectively, which can be used to offset future state taxable income. The carryforwards expire between 2023 and 2032 . A valuation allowance has been established for the future benefits attributable to certain of the non-Wisconsin state net operating losses. The valuation allowance associated with these deferred tax assets was $68,000 as of December 31, 2015 and 2014 . The Corporation believes it will be able to fully utilize its Wisconsin state net operating losses under this law and therefore no valuation allowance has been established on its Wisconsin state net operating losses. The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: Year Ended December 31, 2015 2014 2013 (Dollars In Thousands) Income before income tax expense $ 24,891 $ 21,222 $ 21,135 Tax expense at statutory federal rate of 34.42% and 34% applied to income before income tax expense, respectively $ 8,568 $ 7,305 $ 7,275 State income tax, net of federal effect 968 1,000 906 Tax-exempt security and loan income, net of TEFRA adjustments (879 ) (736 ) (682 ) Change in valuation allowance — (1 ) 59 Bank-owned life insurance (330 ) (296 ) (291 ) Non-deductible transaction costs — 124 — Federal new market tax credit (246 ) (375 ) — Other 296 62 122 Total income tax expense $ 8,377 $ 7,083 $ 7,389 Effective tax rate 33.65 % 33.38 % 34.96 % As of December 31, 2015 and 2014 , the summary of all of the Corporation’s uncertain tax positions totaled $27,000 and $22,000 , respectively. There were no material additions to or reductions from these uncertain tax positions for the year ended December 31, 2015 . In addition, there were no settlements of uncertain tax positions. As of December 31, 2015 , tax years remaining open for the State of Wisconsin tax were 2011 through 2014 . Federal tax years that remained open were 2012 through 2014 . As of December 31, 2015 , there were no unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not designated as accounting hedge relationships and are marked-to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value primarily offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considered the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees. At December 31, 2015 , the aggregate amortizing notional value of interest rate swaps with various commercial borrowers was 24.7 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 $552,000 , included in accrued interest receivable and other assets. In the event of default on a commercial borrower interest rate swap by the counterparty, a right of offset exists to allow for the commercial borrower to set off amounts due against the related commercial loan. As of December 31, 2015 , no interest rate swaps were in default and therefore all values for the commercial borrower swaps are recorded on a gross basis within the Corporation’s Consolidated Balance Sheets. At December 31, 2015 , the aggregate amortizing notional value of interest rate swaps with dealer counterparties was also 24.7 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 our Banks and are reported on the Consolidated Balance Sheets as a net derivative liability of $552,000 . The value of these swaps was included in accrued interest payable and other liabilities as of December 31, 2015 . The gross amount of dealer counterparty swaps was also $552,000 as no right of offset existed with the dealer counterparty swaps as of December 31, 2015 . The table below provides information about the location and fair value of the Corporation’s derivative instruments as of December 31, 2015 and 2014 . Interest Rate Swap Contracts Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In Thousands) Derivatives not designated as hedging instruments December 31, 2015 Other assets $ 552 Other liabilities $ 552 December 31, 2014 Other assets $ 575 Other liabilities $ 575 No derivative instruments held by the Corporation for the year ended December 31, 2015 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 years ended December 31, 2015 , 2014 and 2013 had an insignificant impact to the audited Consolidated Statements of Income. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Banks are party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of clients. These financial instruments include commitments to extend credit and standby letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Financial Statements. The contract amounts reflect the extent of involvement the Banks have in these particular classes of financial instruments. In the event of non-performance, the Banks’ exposure to credit loss for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Banks use the same credit policies in making commitments and conditional obligations as they do for instruments reflected in the Consolidated Financial Statements. An accrual for credit losses on financial instruments with off-balance-sheet risk would be recorded separate from any valuation account related to any such recognized financial instrument. As of December 31, 2015 and 2014 , there were no accrued credit losses for financial instruments with off-balance-sheet risk. Financial instruments whose contract amounts represent potential credit risk at December 31, 2015 and 2014 , respectively, are as follows: At December 31, 2015 2014 (In Thousands) Commitments to extend credit, primarily commercial loans $ 512,627 $ 406,183 Standby letters of credit 18,622 17,555 Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition in the contract. Commitments generally have fixed expiration dates or other termination clauses and may have a fixed interest rate or a rate which varies with the prime rate or other market indices and may require payment of a fee. Since some commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements of the Banks. The Banks evaluate the creditworthiness of each client on a case-by-case basis and generally extend credit only on a secured basis. Collateral obtained varies but consists primarily of commercial real estate, accounts receivable, inventory, equipment and securities. There is generally no market for commercial loan commitments, the fair value of which would approximate the present value of any fees expected to be received as a result of the commitment. These are not considered to be material to the financial statements. Standby letters of credit are conditional commitments issued by the Banks to guarantee the performance of a client to a third party. Generally, standby letters of credit expire within one year and are collateralized by accounts receivable, equipment, inventory and commercial properties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. The fair value of standby letters of credit is recorded as a liability when the standby letter of credit is issued. The fair value has been estimated to approximate the fees received by the Banks for issuance. The fees are recorded into income and the fair value of the guarantee is decreased ratably over the term of the standby letter of credit. In the normal course of business, various legal proceedings involving the Corporation are pending. Management, based upon advice from legal counsel, does not anticipate any significant losses as a result of these actions. Management believes that any liability arising from any such proceedings currently existing or threatened will not have a material adverse effect on the Corporation’s financial position, results of operations, and cash flows. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Corporation determines the fair market values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk such as nonperformance risk in liability fair values and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs other than quoted prices included with Level 1 that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Level 3 inputs are inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Using December 31, 2015 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: Municipal obligations $ — $ 4,283 $ — $ 4,283 Asset backed securities — 1,269 — 1,269 U.S. Government agency obligations - government-sponsored enterprises — 8,017 — 8,017 Collateralized mortgage obligations - government issued — 44,543 — 44,543 Collateralized mortgage obligations - government-sponsored enterprises — 82,436 — 82,436 Interest rate swaps — 552 — 552 Liabilities: Interest rate swaps $ — $ 552 $ — $ 552 Fair Value Measurements Using December 31, 2014 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: Municipal obligations $ — $ 578 $ — $ 578 Asset backed securities — 1,510 — 1,510 U.S. Government agency obligations - government-sponsored enterprises — 8,965 — 8,965 Collateralized mortgage obligations - government issued — 68,874 — 68,874 Collateralized mortgage obligations - government-sponsored enterprises — 64,771 — 64,771 Interest rate swaps — 575 — 575 Liabilities: Interest rate swaps $ — $ 575 $ — $ 575 For assets and liabilities measured at fair value on a recurring basis, there were no transfers between the levels during the years ended December 31, 2015 or 2014 related to the above measurements. Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: As of and for the Year Ended December 31, 2015 Fair Value Measurements Using Total Gains (Losses) Balance at December 31, 2015 Level 1 Level 2 Level 3 (In Thousands) Impaired loans $ 17,763 $ — $ 11,518 $ 6,245 $ — Foreclosed properties 1,677 — 1,677 — (36 ) Loan servicing rights 1,563 — — 1,563 — As of and for the Year Ended December 31, 2014 Fair Value Measurements Using Total Gains (Losses) Balance at December 31, 2014 Level 1 Level 2 Level 3 (In Thousands) Impaired loans $ 8,565 $ — $ 7,025 $ 1,540 $ — Foreclosed properties 1,693 — 1,693 — (4 ) Loan servicing rights 943 — — 943 — Impaired loans were written down to the fair value of their underlying collateral less costs to sell of $17.8 million and $8.6 million at December 31, 2015 and December 31, 2014 , respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value. Valuation techniques consistent with the market approach, income approach, or cost approach were used to measure fair value and primarily included observable inputs for the individual impaired loans being evaluated such as current appraisals, recent sales of similar assets or other observable market data. In cases where such inputs were unobservable, specifically discounts applied to appraisal values to adjust such values to current market conditions or to reflect net realizable value, the impaired loan balance is reflected within Level 3 of the hierarchy. The quantification of unobservable inputs for Level 3 values range from 10% - 100% . The weighted average of those unobservable inputs as of the measurement date of December 31, 2015 was 66% . The majority of the impaired loans in the Level 3 category are considered collateral dependent loans. Loan servicing rights represent the asset retained upon sale of the guaranteed portion of certain SBA loans. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. The servicing rights are subsequently measured using the amortization method, which requires amortization into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. Loan servicing rights do not trade in an active, open market with readily observable prices. While sales of loan servicing rights do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its loan servicing rights. The valuation model incorporates prepayment assumptions to project loan servicing rights cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the loan servicing rights. The valuation model considers portfolio characteristics of the underlying serviced portion of the SBA loans and uses the following significant unobservable inputs: (1) constant prepayment rate (“CPR”) assumptions based on the SBA sold pools historical CPR as quoted in Bloomberg and (2) a discount rate of 10%. Due to the nature of the valuation inputs, loan servicing rights are classified in Level 3 of the fair value hierarchy. As of December 31, 2015 and December 31, 2014 , the estimated fair value of the Corporation’s loan servicing asset was $1.6 million and $943,000 , respectively. Foreclosed properties, upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan and lease losses, if deemed necessary, based upon the fair value of the foreclosed property. The fair value of a foreclosed property, upon initial recognition, is estimated using a market approach or Level 2 inputs based on observable market data, typically an appraisal, or Level 3 inputs based upon assumptions specific to the individual property or equipment. Level 3 inputs typically include unobservable inputs such as management applied discounts used to further reduce values to a net realizable value and may be used in situations when observable inputs become stale. Foreclosed property fair value inputs may transition to Level 1 upon receipt of an accepted offer for the sale of the related foreclosed property. As of December 31, 2015 , there were no foreclosed properties supported by a Level 3 valuation. Subsequent impairments of foreclosed properties are recorded as a loss on foreclosed properties. Based upon an evaluation of value of certain of the Corporation’s foreclosed properties, impairment losses of $36,000 on foreclosed properties were recognized for the year ended December 31, 2015 . The activity of the Corporation’s foreclosed properties is summarized as follows: As of and for the Year Ended December 31, 2015 2014 (In Thousands) Foreclosed properties at the beginning of the period $ 1,693 $ 333 Foreclosed properties acquired in acquisition, at fair value — 1,605 Loans transferred to foreclosed properties, at lower of cost or fair value 341 — Payments to priority lien holders of foreclosed properties — — Proceeds from sale of foreclosed properties (528 ) (255 ) Net gain on sale of foreclosed properties 207 14 Impairment valuation (36 ) (4 ) Foreclosed properties at the end of the period $ 1,677 $ 1,693 Fair Value of Financial Instruments The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: December 31, 2015 Carrying Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 113,564 $ 113,564 $ 100,063 $ 4,451 $ 9,050 Securities available-for-sale 140,548 140,548 — 140,548 — Securities held-to-maturity 37,282 37,558 — 37,558 — Loans held for sale 2,702 2,702 — 2,702 — Loans and lease receivables, net 1,414,649 1,445,773 — 11,518 1,434,255 Federal Home Loan Bank stock 2,843 2,843 — — 2,843 Cash surrender value of life insurance 28,298 28,298 28,298 — — Accrued interest receivable 4,412 4,412 4,412 — — Interest rate swaps 552 552 — 552 — Financial liabilities: Deposits $ 1,577,231 $ 1,577,838 $ 1,009,762 $ 568,076 $ — Federal Home Loan Bank and other borrowings 35,226 35,839 — 35,839 — Junior subordinated notes 10,315 6,939 — — 6,939 Interest rate swaps 552 552 — 552 — Accrued interest payable 1,766 1,766 1,766 — — Off balance sheet items: Standby letters of credit 183 183 — — 183 Commitments to extend credit — * * * * *Not meaningful December 31, 2014 Carrying Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 103,237 $ 103,227 $ 85,937 $ 6,890 $ 10,400 Securities available-for-sale 144,698 144,698 — 144,698 — Securities held-to-maturity 41,563 41,694 — 41,694 — Loans held for sale 1,340 1,340 — 1,340 — Loans and lease receivables, net 1,265,098 1,285,162 — 7,025 1,278,137 Federal Home Loan Bank stock 2,340 2,340 — — 2,340 Cash surrender value of life insurance 27,314 27,314 27,314 — — Accrued interest receivable 3,932 3,932 3,932 — — Interest rate swaps 575 575 — 575 — Financial liabilities: Deposits $ 1,438,268 $ 1,440,248 $ 884,292 $ 555,956 $ — Federal Home Loan Bank and other borrowings 33,994 34,590 — 34,590 — Junior subordinated notes 10,315 7,101 — — 7,101 Interest rate swaps 575 575 — 575 — Accrued interest payable 1,574 1,574 1,574 — — Off balance sheet items: Standby letters of credit 192 192 — — 192 Commitments to extend credit — * * * * *Not meaningful Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the Consolidated Balance Sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation. Cash and cash equivalents: The carrying amounts reported for cash and due from banks, interest bearing deposits held by the Corporation, accrued interest receivable and accrued interest payable approximate fair value because of their immediate availability and because they do not present unanticipated credit concerns. The carrying value of commercial paper, included in the cash and cash equivalents category, approximates fair value due to the short-term maturity structure of the instrument. As of December 31, 2015 and 2014 , the Corporation held $9.1 million and $10.4 million , respectively, of commercial paper. The fair value of commercial paper is considered a Level 3 input due to the lack of available independent pricing sources. The carrying value of brokered certificates of deposit purchased is equivalent to purchase price of the instrument as the Corporation has not elected a fair value option for these instruments. The fair value of brokered certificates of deposits purchased is based on the discounted value of contractual cash flows using a discount rate reflective of rates currently offered for deposits of similar remaining maturities. As of December 31, 2015 and 2014 , the Corporation held $4.5 million and $6.9 million , respectively, of brokered certificates of deposits. Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. On a sample basis, the fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. In addition, the Corporation reviews the third-party valuation methodology on a periodic basis. Any significant differences in valuation are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy. Loans Held for Sale: Loans held for sale, which consist of residential real estate mortgage loans and the guaranteed portion of SBA loans, are carried at the lower of cost or estimated fair value. The estimated fair value was based on what secondary markets are currently offering for portfolios with similar characteristics. 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 and Federal Reserve Bank Stock: The carrying amount of FHLB and FRB stock equals its fair value because the shares may be redeemed by the FHLB at their carrying amount of $100 per share. Cash Surrender Value of Life Insurance: The carrying amount of cash surrender value of life insurance approximates its fair value as the carrying value represents the current settlement amount. Deposits: The fair value of deposits with no stated maturity, such as demand deposits and money market accounts, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the intangible value that results from the funding provided by deposit liabilities compared to borrowing funds in the market. Borrowed Funds: Market rates currently available to the Corporation and Banks for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Financial Instruments with Off-Balance-Sheet Risks: The fair value of the Corporation’s off-balance-sheet instruments is based on quoted market prices and fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the credit standing of the related counterparty. Commitments to extend credit and standby letters of credit are generally not marketable. Furthermore, interest rates on any amounts drawn under such commitments would generally be established at market rates at the time of the draw. Fair value would principally derive from the present value of fees received for those products. Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and were not considered in the estimates. |
Condensed Parent Only Financial
Condensed Parent Only Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Only Financial Information | Condensed Parent Only Financial Information The following represents the condensed financial information of FBFS only: Condensed Balance Sheets As of December 31, 2015 2014 (In Thousands) Assets Cash and cash equivalents $ 1,099 $ 1,179 Investments in subsidiaries, at equity 187,530 170,923 Leasehold improvements and equipment, net 1,519 1,388 Other assets 2,849 2,695 Total assets $ 192,997 $ 176,185 Liabilities and Stockholders’ Equity Borrowed funds $ 35,751 $ 34,251 Other liabilities 6,414 4,186 Total liabilities 42,165 38,437 Stockholders’ equity 150,832 137,748 Total liabilities and stockholders’ equity $ 192,997 $ 176,185 Condensed Statements of Income For the Year Ended December 31, 2015 2014 2013 (In Thousands) Interest income $ — $ — $ — Interest expense 2,777 2,071 1,952 Net interest expense (2,777 ) (2,071 ) (1,952 ) Non-interest income Consulting and rental income from consolidated subsidiaries 13,398 10,776 9,738 Other 35 34 34 Total non-interest income 13,433 10,810 9,772 Non-interest expense 16,854 13,444 10,558 Loss before income tax benefit and equity in undistributed net income of consolidated subsidiaries (6,198 ) (4,705 ) (2,738 ) Income tax benefit (2,527 ) (1,659 ) (1,050 ) Loss before equity in undistributed net income of consolidated subsidiaries (3,671 ) (3,046 ) (1,688 ) Equity in undistributed net income of consolidated subsidiaries 20,185 17,185 15,434 Net income $ 16,514 $ 14,139 $ 13,746 Condensed Statements of Cash Flows For the Year Ended December 31, 2015 2014 2013 (In Thousands) Operating activities Net income $ 16,514 $ 14,139 $ 13,746 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of consolidated subsidiaries (20,185 ) (17,185 ) (15,434 ) Share-based compensation 448 416 311 Excess tax benefit from share-based compensation (162 ) (305 ) (145 ) Increase in other liabilities 2,390 1,002 867 Other, net (319 ) (842 ) (34 ) Net cash used in operating activities (1,314 ) (2,775 ) (689 ) Investing activities Dividends received from subsidiaries 7,034 8,000 8,000 Capital contributions to subsidiaries (3,000 ) (32,980 ) (850 ) Net cash provided by (used in) investing activities 4,034 (24,980 ) 7,150 Financing activities Net increase in short-term borrowed funds 1,500 1,000 — Proceeds from issuance of long-term debt, net of issuance costs — 14,469 — Repayment of long-term debt — (4,000 ) — Proceeds from issuance of common stock — 16,560 — Proceeds from exercise of stock options 300 936 1,474 Purchase of treasury stock (946 ) (1,795 ) (1,782 ) Excess tax benefit from share-based compensation 162 305 145 Dividends paid (3,816 ) (3,396 ) (2,475 ) Net cash (used in) provided by financing activities (2,800 ) 24,079 (2,638 ) (Decrease) increase in cash and cash equivalents (80 ) (3,676 ) 3,823 Cash and cash equivalents at the beginning of the period 1,179 4,855 1,032 Cash and cash equivalents at the end of the period $ 1,099 $ 1,179 $ 4,855 |
Condensed Quarterly Earnings (u
Condensed Quarterly Earnings (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Condensed Quarterly Earnings (unaudited) | Condensed Quarterly Earnings (unaudited) 2015 2014 First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in Thousands, Except per share data) Interest income $ 18,216 $ 17,520 $ 18,135 $ 18,600 $ 13,402 $ 13,565 $ 13,871 $ 16,863 Interest expense (3,286 ) (3,332 ) (3,525 ) (3,688 ) (2,601 ) (2,766 ) (2,936 ) (3,268 ) Net interest income 14,930 14,188 14,610 14,912 10,801 10,799 10,935 13,595 Provision for loan losses (684 ) (520 ) (287 ) (1,895 ) (180 ) 91 89 (1,236 ) Non-interest income 3,848 4,126 4,102 4,935 2,321 2,358 2,459 2,965 Non-interest expense (11,732 ) (11,974 ) (11,984 ) (11,684 ) (7,852 ) (7,749 ) (8,047 ) (10,127 ) Income before income tax expense 6,362 5,820 6,441 6,268 5,090 5,499 5,436 5,197 Income taxes (2,170 ) (1,962 ) (2,060 ) (2,185 ) (1,753 ) (1,994 ) (1,883 ) (1,453 ) Net income $ 4,192 $ 3,858 $ 4,381 $ 4,083 $ 3,337 $ 3,505 $ 3,553 $ 3,744 Per common share data: Basic earnings per common share $ 0.48 $ 0.45 $ 0.50 $ 0.47 $ 0.43 $ 0.44 $ 0.45 $ 0.44 Diluted earnings per common share 0.48 0.45 0.50 0.47 0.42 0.44 0.45 0.44 Dividends declared per share 0.11 0.11 0.11 0.11 0.105 0.105 0.105 0.105 All per share amounts have been adjusted to reflect the 2-for-1 stock split in the form of a 100% stock dividend completed in August 2015. |
Nature of Operations and Summ30
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | Nature of Operations. The accounting and reporting practices of First Business Financial Services, Inc. (the “Corporation”), its wholly-owned subsidiaries, First Business Bank (“FBB”), First Business Bank – Milwaukee (“FBB – Milwaukee”) and Alterra Bank (“Alterra”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). FBB, FBB – Milwaukee and Alterra 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, Green Bay and Manitowoc,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. Alterra operates as a commercial banking institution in the Kansas City market and the surrounding areas. The Banks provide a full range of financial services to businesses, business owners, executives, professionals and high net worth individuals. The Banks are subject to competition from other financial institutions and service providers and are also subject to state and federal regulations. FBB has the following wholly-owned subsidiaries: First Business Capital Corp. (“FBCC”), First Madison Investment Corp. (“FMIC”), First Business Equipment Finance, LLC (“FBEF”), Rimrock Road Investment Fund, LLC (“Rimrock Road”) and BOC Investment, LLC (“BOC”). FMIC is located in and was formed under the laws of the state of Nevada. FBB-Milwaukee has one subsidiary, FBB – Milwaukee Real Estate, LLC (“FBBMRE”). |
Principles of Consolidation | Basis of Financial Statement Presentation. The Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 810, the Corporation’s ownership interest in FBFS Statutory Trust II (“Trust II”) has not been consolidated into the financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Management of the Corporation is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could experience significant changes in the near-term include the value of foreclosed property, lease residuals, property under operating leases, securities, income taxes and the level of the allowance for loan and lease losses. |
Reclassification | Certain amounts in prior periods may have been reclassified to conform to current presentation. |
Subsequent Events | Subsequent events have been evaluated through the issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Corporation considers federal funds sold, interest-bearing deposits and short-term investments that have original maturities of three months or less to be cash equivalents. |
Securities | Securities. The Corporation classifies its investment and mortgage-related securities as available-for-sale, held-to-maturity and trading. Debt securities that the Corporation has the positive intent and ability to hold to maturity are classified as held-to-maturity and are stated at amortized cost. Debt and equity securities bought expressly for the purpose of selling in the near term are classified as trading securities and are measured at fair value with unrealized gains and losses reported in earnings. Debt and equity securities not classified as held-to-maturity or as trading are classified as available-for-sale. Available-for-sale securities are measured at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity, net of tax. Realized gains and losses, and declines in value judged to be other than temporary, are included in the consolidated statements of income as a component of non-interest income. The cost of securities sold is based on the specific identification method. The Corporation did not hold any trading securities at December 31, 2015 and 2014 . Discounts and premiums on investment and mortgage-backed securities are accreted and amortized into interest income using the effective yield method over the weighted average life of the securities. Declines in the fair value of investment securities (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the securities is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in the fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) the Corporation has the intent to sell a security; (2) it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis; or (3) the Corporation does not expect to recover the entire amortized cost basis of the security. If the Corporation intends to sell a security or if it is more likely than not that the Corporation will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If the Corporation does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. |
Loans Held for Sale | Loans Held for Sale. Residential real estate loans and the guaranteed portion of SBA loans which are originated and intended for sale in the secondary market in the foreseeable future are classified as held for sale. These loans are carried at the lower of cost or estimated market value in the aggregate. As assets specifically originated for sale, the origination of, disposition of, and gain/loss on these loans are classified as operating activities in the statement of cash flows. Fees received from the borrower and direct costs to originate the loan are deferred and recognized as part of the gain or loss on sale. There was $2.7 million and $1.3 million in loans held for sale outstanding at December 31, 2015 and 2014 , respectively. |
Loans and Leases | Loans and Leases. Loans and leases which management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance with adjustments for partial charge-offs, the allowance for loan and lease losses, deferred fees or costs on originated loans and leases, and unamortized premiums or discounts on any purchased loans. Loans originated or purchased and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Unrealized losses on such loans are recognized through a valuation allowance by a charge to other non-interest income. Gains and losses on the sale of loans are also included in other non-interest income. A loan or a lease is accounted for as a troubled debt restructuring if the Corporation, for economic or legal reasons related to the borrower’s financial condition, grants a concession to the borrower that it would not otherwise consider. A troubled debt restructuring may involve the receipt of assets from the debtor in partial or full satisfaction of the loan or lease, or a modification of terms such as a reduction of the stated interest rate or face amount of the loan or lease, a reduction of accrued interest, an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan or lease with similar risk, or some combination of these concessions. Restructured loans can involve loans remaining on non-accrual, moving to non-accrual, or continuing on accrual status, depending on individual facts and circumstances. Non-accrual restructured loans are included and treated with all other non-accrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings which are considered and accounted for as impaired loans. Generally, restructured loans remain on non-accrual until the borrower has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on non-accrual. Interest on non-impaired loans and leases is accrued and credited to income on a daily basis based on the unpaid principal balance and is calculated using the effective interest method. Per policy, a loan or a lease is considered impaired and placed on a non-accrual status when it becomes 90 days past due or it is doubtful that contractual principal and interest will be collected in accordance with the terms of the contract. A loan or lease is determined to be past due if the borrower fails to meet a contractual payment and will continue to be considered past due until all contractual payments are received. When a loan or lease is placed on non-accrual, the interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. If collectability of the contractual principal and interest is in doubt, payments received are first applied to reduce loan principal. If collectability of the contractual payments is not in doubt, payments may be applied to interest for interest amounts due on a cash basis. As soon as it is determined with certainty that the principal of an impaired loan or lease is uncollectable either through collections from the borrower or disposition of the underlying collateral, the portion of the carrying balance that exceeds the estimated measurement value of the loan or lease is charged off. Loans or leases are returned to accrual status when they are brought current in terms of both principal and accrued interest due, have performed in accordance with contractual terms for a reasonable period of time, and when the ultimate collectability of total contractual principal and interest is no longer doubtful. Transfers of assets, including but not limited to participation interests in originated loans, that upon completion of the transfer satisfy the conditions to be reported as a sale, including legal isolation, are derecognized from the Consolidated Financial Statements. Transfers of assets that upon completion of the transfer do not meet the conditions of a sale are recorded on a gross basis with a secured borrowing identified to reflect the amount of the transferred interest. Loan and lease origination fees as well as certain direct origination costs are deferred and amortized as an adjustment to loan yields over the stated term of the loan or lease. Loans or leases that result from a refinance or restructuring, other than a troubled debt restructuring, where terms are at least as favorable to the Corporation as the terms for comparable loans to other borrowers with similar collection risks and result in an essentially new loan or lease, are accounted for as a new loan or lease. Any unamortized net fees, costs, or penalties are recognized when the new loan or lease is originated. Unamortized net loan or lease fees or costs for loans and leases that result from a refinance or restructure with only minor modifications to the original loan or lease contract are carried forward as a part of the net investment in the new loan or lease. For troubled debt restructurings all fees received in connection with a modification of terms are applied as a reduction of the loan or lease and any related costs, including direct loan origination costs, are charged to expense as incurred. The Corporation purchased an individual loan in 2013 and a group of loans in connection with the Alterra acquisition which have shown evidence of credit deterioration since origination. These purchased loans are recorded at fair value, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased loans are accounted for individually. The Corporation estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of fair value are recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a provision for loan loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Allowance for Loan and Lease Losses | To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the loan and lease portfolio by segments and risk ratings. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. |
Net Investment in Direct Financing Leases and Operating Leases | Net Investment in Direct Financing Leases. Net investment in direct financing lease agreements represents total undiscounted payments plus estimated unguaranteed residual value (approximating 3% to 20% of the cost of the related equipment) and is recorded as lease receivables when the lease is signed and the leased property is delivered to the client. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis which results in an approximate level rate of return on the unrecovered lease investment. Lease payments are recorded when due under the lease contract. Residual values are established at lease inception equal to the estimated value to be received from the equipment following termination of the initial lease and such estimated value considers all relevant information and circumstances regarding the equipment. In estimating the equipment’s fair value at lease termination, the Corporation relies on internally or externally prepared appraisals, published sources of used equipment prices and historical experience adjusted for known current industry and economic trends. The Corporation’s estimates are periodically reviewed to ensure reasonableness; however, the amounts the Corporation will ultimately realize could differ from the estimated amounts. When there are other than temporary declines in the Corporation’s carrying amount of the unguaranteed residual value, the carrying value is reduced and charged to non-interest expense. Operating Leases. Machinery and equipment are leased to clients under operating leases and are recorded at cost. Equipment under such leases is depreciated over the estimated useful life or term of the lease, if shorter. The impairment loss, if any, would be charged to expense in the period it becomes evident. Rental income is recorded on the straight-line accrual basis as other non-interest income. |
Leasehold Improvements and Equipment | Leasehold Improvements and Equipment. The cost of capitalized leasehold improvements is amortized on the straight-line method over the lesser of the term of the respective lease or estimated economic life. Equipment is stated at cost less accumulated depreciation and amortization which is calculated by the straight-line method over the estimated useful lives of three to ten years. Maintenance and repair costs are charged to expense as incurred. Improvements which extend the useful life are capitalized and depreciated over the remaining useful life of the assets. |
Foreclosed Properties | Foreclosed Properties. Property acquired by repossession, foreclosure or by deed in lieu of foreclosure is carried at the lower of the recorded investment in the loan at the time of acquisition or the fair value of the underlying property, less costs to sell. Any write-down in the carrying value of a loan or lease at the time of acquisition is charged to the allowance for loan and lease losses. Any subsequent write-downs to reflect current fair value, as well as gains and losses on disposition and revenues are recorded in non-interest expense. Costs relating to the development and improvement of the property are capitalized while holding period costs are charged to other non-interest expense. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance. Bank-owned life insurance (“BOLI”) is reported at the amount that would be realized if the life insurance policies were surrendered on the balance sheet date. BOLI policies owned by the Banks are purchased with the objective to fund certain future employee benefit costs with the death benefit proceeds. The cash surrender value of such policies is recorded in cash surrender value of life insurance on the consolidated balance sheets and changes in the value are recorded in non-interest income. The total death benefit of all of the BOLI policies was $67.1 million as of December 31, 2015 . There are no restrictions on the use of BOLI proceeds nor are there any contractual restrictions on the ability to surrender the policy. As of each of December 31, 2015 and 2014 , there were no borrowings against the cash surrender value of the BOLI policies. |
Regulatory Required Holdings | Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) Stock. The Banks are required to maintain FHLB stock as members of the FHLB, and in amounts as required by these institutions. Alterra, as a state chartered member of the Federal Reserve Bank of Kansas City, is required to own shares of FRB stock. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to cost. At December 31, 2015 , and 2014 , the Banks had FHLB stock of $1.8 million . Alterra had FRB stock of $1.1 million and $533,000 at December 31, 2015 and 2014 , respectively. The Corporation periodically evaluates its holding in FHLB and FRB stock for impairment. Should the stock be impaired, it would be written down to its estimated fair value. There were no impairments recorded on FHLB and FRB stock during the years ended December 31, 2015 and 2014 . |
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets. The excess of the cost of the acquisition over the fair value of the net assets acquired consists primarily of goodwill, core deposit intangibles and loan servicing rights. Core deposit intangibles have estimated finite lives and are amortized on an accelerated basis to expense over a period of seven years. Loan servicing rights, when purchased, are initially recorded at fair value and subsequently amortized in proportion to and over the period of estimated net servicing income. The Corporation reviews other intangible assets for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, in which case an impairment charge would be recorded. Goodwill is not amortized but is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount (including goodwill). An initial qualitative evaluation is made to assess the likelihood of impairment and determine whether further quantitative testing to calculate the fair value is necessary. When the qualitative evaluation indicates that impairment is more likely than not, quantitative testing is required whereby the fair value of each reporting unit is calculated and compared to the recorded book value, “step one.” If the calculated fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of a reporting unit exceeds its calculated fair value, the impairment test continues (“step two”) by comparing the carrying value of the reporting unit’s goodwill to the implied fair value of goodwill. The implied fair value is computed by adjusting all assets and liabilities of the reporting unit to current fair value with the offset adjustment to goodwill. The adjusted goodwill balance is the implied fair value of the goodwill. An impairment charge is recognized if the carrying value of goodwill exceeds the implied fair value of goodwill. See Note 6 for additional information on goodwill and other intangible assets. |
Other Investments | Other Investments. The Corporation owns certain equity investments in other corporate organizations which are not consolidated because the Corporation does not own more than a 50% interest or exercise control over the organization. Such investments are not variable interest entities. Investments in corporations representing at least a 20% interest are generally accounted for using the equity method and investments in corporations representing less than 20% interest are generally accounted for at cost. Investments in limited partnerships representing from at least a 3% up to a 50% interest in the entity are generally accounted for using the equity method and investments in limited partnerships representing less than 3% are generally accounted for at cost. All of these investments are periodically evaluated for impairment. Should an investment be impaired, it would be written down to its estimated fair value. The equity investments are reported in other assets and the income and expense from such investments, if any, is reported in non-interest income and non-interest expense. |
Derivative Instruments | Derivative Instruments. The Corporation uses derivative instruments to protect against the risk of adverse price or interest rate movements on the value of certain assets, liabilities, future cash flows and economic hedges for written client derivative contracts. Derivative instruments represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash to the other party based on a notional amount and an underlying as specified in the contract and may be subject to master netting agreements. A notional amount represents the number of units of a specific item, such as currency units. An underlying represents a variable, such as an interest rate. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying. Market risk is the risk of loss arising from an adverse change in interest rates, exchange rates or equity prices. The Corporation’s primary market risk is interest rate risk. Instruments designed to manage interest rate risk include interest rate swaps, interest rate options and interest rate caps and floors with indices that relate to the pricing of specific assets and liabilities. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance sheet and the risk management strategies for the current and anticipated rate environments. Counterparty risk with respect to derivative instruments occurs when a counterparty to a derivative contract with an unrealized gain fails to perform according to the terms of the agreement. Counterparty risk is managed by limiting the counterparties to highly rated dealers, requiring collateral postings when values are in deficit positions, applying uniform credit standards to all activities with credit risk and monitoring the size and the maturity structure of the derivative portfolio. All derivative instruments are to be carried at fair value on the consolidated balance sheets. The accounting for the gain or loss due to changes in the fair value of a derivative instrument depends on whether the derivative instrument qualifies as a hedge. If the derivative instrument does not qualify as a hedge, the gains or losses are reported in earnings when they occur. However, if the derivative instrument qualifies as a hedge, the accounting varies based on the type of risk being hedged. In 2015 and 2014 , the Corporation solely utilized interest rate swaps which did not qualify for hedge accounting and therefore all changes in fair value and gains and losses on these instruments were reported in earnings as they occurred. The effects of netting arrangements are disclosed within the Notes of the Consolidated Financial Statements. |
Income Taxes | Income Taxes. Deferred income tax assets and liabilities are computed annually for temporary differences in timing between the financial statement and tax basis of assets and liabilities that result in taxable or deductible amounts in the future based on enacted tax law and rates applicable to periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, appropriate tax planning strategies and projections for future taxable income over the period which the deferred tax assets are deductible. When necessary, valuation allowances are established to reduce deferred tax assets to the realizable amount. Management believes it is more likely than not that the Corporation will realize the benefits of these deductible differences, net of the existing valuation allowances. Income tax expense or benefit represents the tax payable or tax refundable for a period, adjusted by the applicable change in deferred tax assets and liabilities for that period. The Corporation and its subsidiaries file a consolidated federal income tax return and separate state income tax returns. Tax sharing agreements allocate taxes to each entity for the settlement of intercompany taxes. The Corporation applies a more likely than not standard to each of its tax positions when determining the amount of tax expense or benefit to record in its financial statements. Unrecognized tax benefits are recorded in other liabilities. The Corporation recognizes accrued interest relating to unrecognized tax benefits in income tax expense and penalties in other non-interest expense. |
Comprehensive Income | Other Comprehensive Income or Loss. Comprehensive income or loss, shown as a separate financial statement, includes net income or loss, changes in unrealized holding gains and losses on available for sale securities, changes in deferred gains and losses on investment securities transferred from available for sale to held to maturity, if any, changes in unrealized gains and losses associated with cash flow hedging instruments, if any, and the amortization of deferred gains and losses associated with terminated cash flow hedges, if any. For the year ended December 31, 2015 , there were no items requiring reclassification out of accumulated other comprehensive income. |
Earnings Per Share | Earnings Per Share. Earnings per common share (“EPS”) is computed using the two-class method. Basic EPS is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding for the period, excluding any participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends at the same rate as the holders of the Corporation’s common stock. Diluted EPS is computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of common shares determined for the basic EPS plus the dilutive effect of common stock equivalents using the treasury stock method based on the average market price for the period. Some stock options are anti-dilutive and therefore are not included in the calculation of diluted EPS. |
Segments and Related Information | Segments and Related Information. The Corporation is required to report each operating segment based on materiality thresholds of ten percent or more of certain amounts, such as revenue. Additionally, the Corporation is required to report separate operating segments until the revenue attributable to such segments is at least 75 percent of total consolidated revenue. The Corporation provides a broad range of financial services to individuals and companies in the Midwest. These services include demand, time, and savings products, the sale of certain non-deposit financial products and commercial and retail lending, leasing and trust services. While the Corporation’s chief decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a corporate-wide basis. The Corporation’s business units have similar basic characteristics in the nature of the products, production processes and type or class of client for products or services; therefore, these business units are considered one operating segment. |
Stock Options | 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. |
Future Accounting Changes | Recent Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The new guidance excludes money market funds that are required to comply with Rule 2a-7 of the Investment Company Act of 1940 and similar entities from the U.S. GAAP consolidation requirements. The new consolidation guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. At the effective date, all previous consolidation analysis that the guidance affects must be reconsidered. This includes the consolidation analysis for all VIEs and for all limited partnerships and similar entities that previously were consolidated by the general partner even though the entities were not VIEs. Early adoption is permitted, including early adoption in an interim period. If a reporting enterprise chooses to early adopt in an interim period, adjustments resulting from the revised consolidation analysis must be reflected as of the beginning of the fiscal year that includes that interim period. The Corporation intends to adopt the standard during the first quarter of 2016, as required, and with no expected material impact on its consolidated results of operations, financial position, or liquidity. In August 2015, the FASB issued ASU No. 2015-15, “Interest-Imputation of Interest (Subtopic 835-30), with an effective date for annual reporting periods beginning after December 15, 2016. In April 2015, the FASB issued ASU 2015-03, “ Interest - Imputation of Interest (Subtopic 835-30) that intends to simplify the presentation of debt issuance costs. This ASU is also effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU 2015-15 further addresses the presentation of debt issuance costs related to line-of-credit-arrangements and allows for an entity to present the debt issuance costs as an asset and amortize ratably over the term of the line-of-credit arrangement. The Corporation intends to adopt the standard during the first quarter of 2016, as required, and with no expected material impact on the its consolidated results of operations, financial position, or liquidity. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606).” In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” with an original effective date for annual reporting periods beginning after December 15, 2016. 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. ASU 2015-14 deferred the effective date of ASU 2014-09 to annual and interim reporting periods in fiscal years beginning after December 15, 2017. Earlier application is permitted only as of annual and interim reporting periods in fiscal years 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 results of operations, financial position, or liquidity. In September 2015, the FASB issued ASU No. 2015-16 , “Business Combinations (Topic 805).” The ASU intends to simplify the accounting for measurement adjustments to prior business combinations. The amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendment also requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This amendment is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this amendment with earlier application permitted for financial statements that have not been issued. The Corporation intends to adopt the standard during the first quarter of 2016, as required, and with no expected material impact on its consolidated results of operations, financial position, or liquidity. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments (Subtopic 825-10).” The ASU amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This amendment supersedes the guidance to classify equity securities with readily determinable fair values into different categories, requires equity securities to be measured at fair value with changes in the fair value recognized through net income, and simplifies the impairment assessment of equity investments without readily determinable fair values. The amendment requires public business entities that are required to disclose the fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion. The amendment requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. The amendment requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. The amendment reduces diversity in current practice by clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities should apply the amendment by means of a cumulative-effect adjustment as of the beginning of the fiscal year of adoption, with the exception of the amendment related to equity securities without readily determinable fair values, which should be applied prospectively to equity investments that exist as of the date of adoption. The Corporation intends to adopt the accounting standard during the first quarter of 2018, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity. |
Loan and Lease Receivables, I31
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Allowance for Loan and Lease Losses | To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the loan and lease portfolio by segments and risk ratings. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. |
Fair Value (Policies)
Fair Value (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Foreclosed properties, upon initial recognition, are re-measured and reported at fair value through a charge-off to the allowance for loan and lease losses, if deemed necessary, based upon the fair value of the foreclosed property. The fair value of a foreclosed property, upon initial recognition, is estimated using a market approach or Level 2 inputs based on observable market data, typically an appraisal, or Level 3 inputs based upon assumptions specific to the individual property or equipment. Level 3 inputs typically include unobservable inputs such as management applied discounts used to further reduce values to a net realizable value and may be used in situations when observable inputs become stale. Foreclosed property fair value inputs may transition to Level 1 upon receipt of an accepted offer for the sale of the related foreclosed property. As of December 31, 2015 , there were no foreclosed properties supported by a Level 3 valuation. Subsequent impairments of foreclosed properties are recorded as a loss on foreclosed properties. Based upon an evaluation of value of certain of the Corporation’s foreclosed properties, impairment losses of $36,000 on foreclosed properties were recognized for the year ended December 31, 2015 . The Corporation determines the fair market values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk such as nonperformance risk in liability fair values and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs other than quoted prices included with Level 1 that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Level 3 inputs are inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the Consolidated Balance Sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation. Cash and cash equivalents: The carrying amounts reported for cash and due from banks, interest bearing deposits held by the Corporation, accrued interest receivable and accrued interest payable approximate fair value because of their immediate availability and because they do not present unanticipated credit concerns. The carrying value of commercial paper, included in the cash and cash equivalents category, approximates fair value due to the short-term maturity structure of the instrument. As of December 31, 2015 and 2014 , the Corporation held $9.1 million and $10.4 million , respectively, of commercial paper. The fair value of commercial paper is considered a Level 3 input due to the lack of available independent pricing sources. The carrying value of brokered certificates of deposit purchased is equivalent to purchase price of the instrument as the Corporation has not elected a fair value option for these instruments. The fair value of brokered certificates of deposits purchased is based on the discounted value of contractual cash flows using a discount rate reflective of rates currently offered for deposits of similar remaining maturities. As of December 31, 2015 and 2014 , the Corporation held $4.5 million and $6.9 million , respectively, of brokered certificates of deposits. Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. On a sample basis, the fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. In addition, the Corporation reviews the third-party valuation methodology on a periodic basis. Any significant differences in valuation are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy. Loans Held for Sale: Loans held for sale, which consist of residential real estate mortgage loans and the guaranteed portion of SBA loans, are carried at the lower of cost or estimated fair value. The estimated fair value was based on what secondary markets are currently offering for portfolios with similar characteristics. 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 and Federal Reserve Bank Stock: The carrying amount of FHLB and FRB stock equals its fair value because the shares may be redeemed by the FHLB at their carrying amount of $100 per share. Cash Surrender Value of Life Insurance: The carrying amount of cash surrender value of life insurance approximates its fair value as the carrying value represents the current settlement amount. Deposits: The fair value of deposits with no stated maturity, such as demand deposits and money market accounts, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the intangible value that results from the funding provided by deposit liabilities compared to borrowing funds in the market. Borrowed Funds: Market rates currently available to the Corporation and Banks for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Financial Instruments with Off-Balance-Sheet Risks: The fair value of the Corporation’s off-balance-sheet instruments is based on quoted market prices and fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the credit standing of the related counterparty. Commitments to extend credit and standby letters of credit are generally not marketable. Furthermore, interest rates on any amounts drawn under such commitments would generally be established at market rates at the time of the draw. Fair value would principally derive from the present value of fees received for those products. Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and were not considered in the estimates. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 8,047 $ 2 $ (32 ) $ 8,017 Municipal obligations 4,278 12 (7 ) 4,283 Asset-backed securities 1,327 — (58 ) 1,269 Collateralized mortgage obligations - government issued 43,845 814 (116 ) 44,543 Collateralized mortgage obligations - government-sponsored enterprises 82,707 145 (416 ) 82,436 $ 140,204 $ 973 $ (629 ) $ 140,548 As of December 31, 2014 Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 9,046 $ — $ (81 ) $ 8,965 Municipal obligations 573 5 — 578 Asset-backed securities 1,514 — (4 ) 1,510 Collateralized mortgage obligations - government issued 67,740 1,390 (256 ) 68,874 Collateralized mortgage obligations - government-sponsored enterprises 64,763 234 (226 ) 64,771 $ 143,636 $ 1,629 $ (567 ) $ 144,698 |
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 December 31, 2015 Amortized cost Gross Gross Estimated (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ 1,495 $ 1 $ (11 ) $ 1,485 Municipal obligations 16,038 332 (5 ) 16,365 Asset-backed securities — — — — Collateralized mortgage obligations - government issued 11,718 32 (41 ) 11,709 Collateralized mortgage obligations - government-sponsored enterprises 8,031 12 (44 ) 7,999 $ 37,282 $ 377 $ (101 ) $ 37,558 As of December 31, 2014 Amortized cost Gross Gross Estimated (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ 1,490 $ — $ (17 ) $ 1,473 Municipal obligations 16,088 85 (18 ) 16,155 Asset-backed securities — — — — Collateralized mortgage obligations - government issued 14,505 57 (31 ) 14,531 Collateralized mortgage obligations - government-sponsored enterprises 9,480 74 (19 ) 9,535 $ 41,563 $ 216 $ (85 ) $ 41,694 |
Investments Classified by Contractual Maturity | The amortized cost and estimated fair value of securities by contractual maturity at December 31, 2015 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated (In Thousands) Due in one year or less $ — $ — $ — $ — Due in one year through five years 13,511 13,505 3,890 3,899 Due in five through ten years 88,690 88,902 13,643 13,950 Due in over ten years 38,003 38,141 19,749 19,709 $ 140,204 $ 140,548 $ 37,282 $ 37,558 |
Schedule of Unrealized Loss on Investments | A summary of unrealized loss information for available-for-sale securities, categorized by security type follows: As of December 31, 2015 Less than 12 months 12 months or longer Total Fair value Unrealized Fair value Unrealized Fair value Unrealized (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 3,536 $ 13 $ 1,981 $ 19 $ 5,517 $ 32 Municipal obligations 2,403 7 — — 2,403 7 Asset-backed securities 1,269 58 — — 1,269 58 Collateralized mortgage obligations - government issued 3,373 19 5,687 97 9,060 116 Collateralized mortgage obligations - government-sponsored enterprises 59,992 373 1,717 43 61,709 416 $ 70,573 $ 470 $ 9,385 $ 159 $ 79,958 $ 629 As of December 31, 2014 Less than 12 months 12 months or longer Total Fair value Unrealized Fair value Unrealized Fair value Unrealized (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 3,486 $ 12 $ 5,479 $ 69 $ 8,965 $ 81 Municipal obligations — — — — — — Asset-backed securities $ — $ — $ 1,510 $ 4 $ 1,510 $ 4 Collateralized mortgage obligations - government issued 9,201 50 9,536 206 18,737 256 Collateralized mortgage obligations - government-sponsored enterprises 29,498 97 4,993 129 34,491 226 $ 42,185 $ 159 $ 21,518 $ 408 $ 63,703 $ 567 A summary of unrecognized loss information for securities held-to-maturity, categorized by security type follows: As of December 31, 2015 Less than 12 months 12 months or longer Total Fair value Unrecognized Fair value Unrecognized Fair value Unrecognized (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ — $ — $ 1,000 $ 11 $ 1,000 $ 11 Municipal obligations 436 4 199 1 635 5 Collateralized mortgage obligations - government issued 6,518 41 — — 6,518 41 Collateralized mortgage obligations - government-sponsored enterprises 5,168 44 — — 5,168 44 $ 12,122 $ 89 $ 1,199 $ 12 $ 13,321 $ 101 As of December 31, 2014 Less than 12 months 12 months or longer Total Fair value Unrecognized Fair value Unrecognized Fair value Unrecognized (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ 1,490 $ 17 $ — $ — $ 1,490 $ 17 Municipal obligations 2,222 18 $ — $ — 2,222 18 Collateralized mortgage obligations - government issued 3,247 $ 31 $ — $ — 3,247 31 Collateralized mortgage obligations - government-sponsored enterprises $ 3,076 $ 19 $ — $ — 3,076 19 $ 10,035 $ 85 $ — $ — $ 10,035 $ 85 |
Loan and Lease Receivables, I34
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loan Composition Schedule | Loan and lease receivables, including loans held for sale, consist of the following: December 31, December 31, (In Thousands) Commercial real estate Commercial real estate — owner occupied $ 176,322 $ 163,884 Commercial real estate — non-owner occupied 436,901 417,962 Construction and land development 160,404 121,160 Multi-family 80,254 72,578 1-4 family (1) 51,607 36,182 Total commercial real estate 905,488 811,766 Commercial and industrial (2) 473,592 416,654 Direct financing leases, net 31,093 34,165 Consumer and other Home equity and second mortgages 8,237 7,866 Other 16,319 11,341 Total consumer and other 24,556 19,207 Total gross loans and leases receivable 1,434,729 1,281,792 Less: Allowance for loan and lease losses 16,316 14,329 Deferred loan fees 1,062 1,025 Loans and leases receivable, net $ 1,417,351 $ 1,266,438 |
Schedule of Fair Value of Credit Impaired Loans Acquired | December 31, December 31, (In Thousands) Contractually required payments $ 5,291 $ 6,874 Fair value of credit impaired loans acquired $ 3,250 $ 4,025 |
Accretable Yield Rollforward | The following table presents a rollforward of the accretable yield for the year ended December 31, 2015 and 2014 . December 31, December 31, (In Thousands) Accretable yield, beginning of period $ 676 $ 683 Accretion recognized in earnings (50 ) (7 ) Reclassification to nonaccretable difference for loans with changing cash flows (1) (60 ) — Changes in accretable yield for non-credit related changes in expected cash flows (2) (152 ) — Accretable yield, end of period $ 414 $ 676 |
Financing Receivable by Credit Quality Indicators | The following information illustrates ending balances of the Corporation’s loan and lease portfolio, including impaired loans by class of receivable, and considering certain credit quality indicators as of December 31, 2015 and 2014 : Category As of December 31, 2015 I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 156,379 $ 7,654 $ 9,311 $ 2,978 $ 176,322 Commercial real estate — non-owner occupied 410,517 20,662 3,408 2,314 436,901 Construction and land development 151,508 3,092 874 4,930 160,404 Multi-family 79,368 884 — 2 80,254 1-4 family (1) 42,389 3,985 1,865 3,368 51,607 Total commercial real estate 840,161 36,277 15,458 13,592 905,488 Commercial and industrial (2) 431,598 7,139 25,706 9,149 473,592 Direct financing leases, net 29,514 1,013 528 38 31,093 Consumer and other: Home equity and second mortgages 7,497 — 141 599 8,237 Other 15,616 48 — 655 16,319 Total consumer and other 23,113 48 141 1,254 24,556 Total gross loans and leases receivable $ 1,324,386 $ 44,477 $ 41,833 $ 24,033 $ 1,434,729 Category as a % of total portfolio 92.30 % 3.10 % 2.92 % 1.68 % 100.00 % (1) Includes residential real estate loans held for sale totaling $1.3 million in Category I. (2) Includes guaranteed portion of SBA loans held for sale totaling $1.4 million in Category I. Category As of December 31, 2014 I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 131,094 $ 15,592 $ 16,621 $ 577 $ 163,884 Commercial real estate — non-owner occupied 378,671 20,823 17,498 970 417,962 Construction and land development 100,934 8,193 6,876 5,157 121,160 Multi-family 70,897 751 913 17 72,578 1-4 family (1) 25,997 5,278 3,336 1,571 36,182 Total commercial real estate 707,593 50,637 45,244 8,292 811,766 Commercial and industrial 383,755 18,524 12,026 2,349 416,654 Direct financing leases, net 32,756 1,120 289 — 34,165 Consumer and other: Home equity and second mortgages 7,039 205 189 433 7,866 Other 10,570 50 — 721 11,341 Total consumer and other 17,609 255 189 1,154 19,207 Total gross loans and leases receivable $ 1,141,713 $ 70,536 $ 57,748 $ 11,795 $ 1,281,792 Category as a % of total portfolio 89.07 % 5.50 % 4.51 % 0.92 % 100.00 % |
Past Due Financing Receivables | The delinquency aging of the loan and lease portfolio by class of receivable as of December 31, 2015 and 2014 were as follows: As of December 31, 2015 30-59 60-89 Greater Total past due Current Total loans (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 173,416 $ 173,416 Non-owner occupied — — — — 435,222 435,222 Construction and land development — — — — 155,675 155,675 Multi-family — — — — 80,252 80,252 1-4 family (1) 78 — — 78 48,918 48,996 Commercial & industrial (2) — — — — 464,456 464,456 Direct financing leases, net — — — — 31,055 31,055 Consumer and other: Home equity and second mortgages — — — — 7,695 7,695 Other — — — — 15,664 15,664 Total $ 78 $ — $ — $ 78 $ 1,412,353 $ 1,412,431 Non-accruing loans and leases Commercial real estate: Owner occupied $ — $ 473 $ — $ 473 $ 2,434 $ 2,907 Non-owner occupied — — — — 1,678 1,678 Construction and land development 397 — — 397 4,332 4,729 Multi-family — — — — 2 2 1-4 family 430 34 895 1,359 1,252 2,611 Commercial & industrial 2,077 — 564 2,641 6,495 9,136 Direct financing leases, net — — — — 38 38 Consumer and other: Home equity and second mortgages — — 250 250 292 542 Other — — 655 655 — 655 Total $ 2,904 $ 507 $ 2,364 $ 5,775 $ 16,523 $ 22,298 Total loans and leases Commercial real estate: Owner occupied $ — $ 473 $ — $ 473 $ 175,850 $ 176,323 Non-owner occupied — — — — 436,900 436,900 Construction and land development 397 — — 397 160,007 160,404 Multi-family — — — — 80,254 80,254 1-4 family 508 34 895 1,437 50,170 51,607 Commercial & industrial 2,077 — 564 2,641 470,951 473,592 Direct financing leases, net — — — — 31,093 31,093 Consumer and other: Home equity and second mortgages — — 250 250 7,987 8,237 Other — — 655 655 15,664 16,319 Total $ 2,982 $ 507 $ 2,364 $ 5,853 $ 1,428,876 $ 1,434,729 Percent of portfolio 0.21 % 0.04 % 0.16 % 0.41 % 99.59 % 100.00 % (1) Includes residential real estate loans held for sale totaling $1.3 million. (2) Includes guaranteed portion of SBA loans held for sale totaling $1.4 million. As of December 31, 2014 30-59 60-89 Greater Total past due Current Total loans (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 163,384 $ 163,384 Non-owner occupied — — — — 417,676 417,676 Construction and land development — — — — 116,228 116,228 Multi-family — — — — 72,561 72,561 1-4 family (1) — — — — 35,492 35,492 Commercial & industrial — — — — 414,336 414,336 Direct financing leases, net — — — — 34,165 34,165 Consumer and other: Home equity and second mortgages — — — — 7,537 7,537 Other — — — — 10,621 10,621 Total $ — $ — $ — $ — $ 1,272,000 $ 1,272,000 Non-accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 500 $ 500 Non-owner occupied — 215 — 215 71 286 Construction and land development — 193 — 193 4,739 4,932 Multi-family — — — — 17 17 1-4 family — 106 306 412 278 690 Commercial & industrial 364 146 736 1,246 1,072 2,318 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — 329 329 Other — — 720 720 — 720 Total $ 364 $ 660 $ 1,762 $ 2,786 $ 7,006 $ 9,792 Total loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 163,884 $ 163,884 Non-owner occupied — 215 — 215 417,747 417,962 Construction and land development — 193 — 193 120,967 121,160 Multi-family — — — — 72,578 72,578 1-4 family — 106 306 412 35,770 36,182 Commercial & industrial 364 146 736 1,246 415,408 416,654 Direct financing leases, net — — — — 34,165 34,165 Consumer and other: Home equity and second mortgages — — — — 7,866 7,866 Other — — 720 720 10,621 11,341 Total $ 364 $ 660 $ 1,762 $ 2,786 $ 1,279,006 $ 1,281,792 Percent of portfolio 0.03 % 0.05 % 0.14 % 0.22 % 99.78 % 100.00 % |
Schedule of Financing Receivables, Non Accrual Status | The Corporation’s total impaired assets consisted of the following at December 31, 2015 and 2014 , respectively. December 31, December 31, (Dollars in Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 2,907 $ 500 Commercial real estate — non-owner occupied 1,678 286 Construction and land development 4,729 4,932 Multi-family 2 17 1-4 family 2,611 690 Total non-accrual commercial real estate 11,927 6,425 Commercial and industrial 9,136 2,318 Direct financing leases, net 38 — Consumer and other: Home equity and second mortgages 542 329 Other 655 720 Total non-accrual consumer and other loans 1,197 1,049 Total non-accrual loans and leases 22,298 9,792 Foreclosed properties, net 1,677 1,693 Total non-performing assets 23,975 11,485 Performing troubled debt restructurings 1,735 2,003 Total impaired assets $ 25,710 $ 13,488 December 31, December 31, Total non-accrual loans and leases to gross loans and leases 1.55 % 0.76 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 1.67 0.89 Total non-performing assets to total assets 1.34 0.70 Allowance for loan and lease losses to gross loans and leases 1.14 1.12 Allowance for loan and lease losses to non-accrual loans and leases 73.17 146.33 |
Troubled Debt Restructurings on Financing Receivables | As of December 31, 2015 As of December 31, 2014 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment (Dollars in Thousands) Troubled debt restructurings: Commercial real estate Commercial real estate — owner occupied 3 $ 1,209 $ 1,188 2 $ 624 $ 577 Commercial real estate — non-owner occupied 5 1,150 904 5 1,095 970 Construction and land development 3 6,034 4,593 4 6,260 5,157 Multi-family 1 184 2 1 184 17 1-4 family 15 2,035 1,869 16 2,119 1,368 Commercial and industrial 10 7,572 8,330 4 361 155 Consumer and other: Home equity and second mortgage 4 461 349 6 772 431 Other 1 2,076 655 2 2,080 721 Total 42 $ 20,721 $ 17,890 40 $ 13,495 $ 9,396 |
Troubled Debt Restructurings by Modification Type | As of December 31, 2015 and 2014 , our troubled debt restructurings grouped by type of concession were as follows: As of December 31, 2015 As of December 31, 2014 Number of Loans Post-Modification Recorded Investment Number of Loans Post-Modification Recorded Investment (Dollars in Thousands) Commercial real estate Extension of term 1 $ 24 1 $ 39 Interest rate concession 1 55 1 65 Combination of extension and interest rate concession 25 8,477 26 7,984 Commercial and industrial Combination of extension and interest rate concession 10 8,330 4 155 Consumer and other Extension of term 1 655 3 753 Combination of extension and interest rate concession 4 349 5 400 Total 42 $ 17,890 40 $ 9,396 |
Impaired Financing Receivables | The following represents additional information regarding the Corporation’s impaired loans and leases by class: Impaired Loans and Leases As of and for the Year Ended December 31, 2015 Recorded investment Unpaid principal balance Impairment reserve Average recorded investment (1) Foregone interest income Interest income recognized Net foregone interest income (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 2,164 $ 2,164 $ — $ 712 $ 53 $ 12 $ 41 Non-owner occupied 2,314 2,355 — 962 25 — 25 Construction and land development 4,533 7,203 — 4,807 133 — 133 Multi-family 2 369 — 10 27 — 27 1-4 family 2,423 2,486 — 1,604 82 4 78 Commercial and industrial 2,546 2,590 — 544 172 6 166 Direct financing leases, net 38 38 — 4 — — — Consumer and other: Home equity and second mortgages 500 500 — 390 23 63 (40 ) Other 655 1,321 — 688 82 — 82 Total $ 15,175 $ 19,026 $ — $ 9,721 $ 597 $ 85 $ 512 With impairment reserve recorded: Commercial real estate: Owner occupied $ 814 $ 814 $ 20 $ 215 $ 7 $ 2 $ 5 Non-owner occupied — — — — — — — Construction and land development 397 397 48 34 — — — Multi-family — — — — — — — 1-4 family 945 950 173 605 34 — 34 Commercial and industrial 6,603 6,603 847 810 102 — 102 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 99 99 25 58 10 — 10 Other — — — — — — — Total $ 8,858 $ 8,863 $ 1,113 $ 1,722 $ 153 $ 2 $ 151 Total: Commercial real estate: Owner occupied $ 2,978 $ 2,978 $ 20 $ 927 $ 60 $ 14 $ 46 Non-owner occupied 2,314 2,355 — 962 25 — 25 Construction and land development 4,930 7,600 48 4,841 133 — 133 Multi-family 2 369 — 10 27 — 27 1-4 family 3,368 3,436 173 2,209 116 4 112 Commercial and industrial 9,149 9,193 847 1,354 274 6 268 Direct financing leases, net 38 38 — 4 — — — Consumer and other: Home equity and second mortgages 599 599 25 448 33 63 (30 ) Other 655 1,321 — 688 82 — 82 Grand total $ 24,033 $ 27,889 $ 1,113 $ 11,443 $ 750 $ 87 $ 663 (1) Average recorded investment is calculated primarily using daily average balances. Impaired Loans and Leases As of and for the Year Ended December 31, 2014 Recorded Unpaid Impairment Average (1) Foregone Interest Net (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 577 $ 577 $ — $ 484 $ 30 $ 79 $ (49 ) Non-owner occupied 921 921 — 349 22 — 22 Construction and land development 5,157 7,828 — 5,285 155 — 155 Multi-family 17 384 — 24 53 — 53 1-4 family 1,181 1,218 — 380 15 12 3 Commercial and industrial 2,316 2,926 — 6,141 463 649 (186 ) Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 380 380 — 495 18 — 18 Other 721 1,389 — 768 87 — 87 Total $ 11,270 $ 15,623 $ — $ 13,926 $ 843 $ 740 $ 103 With impairment reserve recorded: Commercial real estate: Owner occupied $ — $ — $ — $ — $ — $ — $ — Non-owner occupied 49 89 49 52 4 — 4 Construction and land development — — — — — — — Multi-family — — — — — — — 1-4 family 390 390 155 405 18 — 18 Commercial and industrial 33 33 33 34 — — — Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 53 53 53 57 5 — 5 Other — — — — — — — Total $ 525 $ 565 $ 290 $ 548 $ 27 $ — $ 27 Total: Commercial real estate: Owner occupied $ 577 $ 577 $ — $ 484 $ 30 $ 79 $ (49 ) Non-owner occupied 970 1,010 49 401 26 — 26 Construction and land development 5,157 7,828 — 5,285 155 — 155 Multi-family 17 384 — 24 53 — 53 1-4 family 1,571 1,608 155 785 33 12 21 Commercial and industrial 2,349 2,959 33 6,175 463 649 (186 ) Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 433 433 53 552 23 — 23 Other 721 1,389 — 768 87 — 87 Grand total $ 11,795 $ 16,188 $ 290 $ 14,474 $ 870 $ 740 $ 130 (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 investment Unpaid principal balance Impairment reserve Average recorded investment (1) Foregone interest income Interest income recognized Net foregone 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 Year Ended December 31, 2015 Commercial real estate Commercial and industrial loans and leases Consumer and other Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 8,619 $ 5,492 $ 218 $ 14,329 Charge-offs (793 ) (711 ) (9 ) (1,513 ) Recoveries 104 6 4 114 Provision 3,290 (400 ) 496 3,386 Ending balance $ 11,220 $ 4,387 $ 709 $ 16,316 Ending balance: individually evaluated for impairment $ 240 $ 847 $ 26 $ 1,113 Ending balance: collectively evaluated for impairment $ 10,980 $ 3,540 $ 683 $ 15,203 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and lease receivables: Ending balance, gross $ 905,488 $ 504,685 $ 24,556 $ 1,434,729 Ending balance: individually evaluated for impairment $ 10,849 $ 8,942 $ 1,061 $ 20,852 Ending balance: collectively evaluated for impairment $ 891,897 $ 495,497 $ 23,302 $ 1,410,696 Ending balance: loans acquired with deteriorated credit quality $ 2,742 $ 246 $ 193 $ 3,181 Allowance as % of gross loans and leases 1.24 % 0.87 % 2.89 % 1.14 % As of and for the Year Ended December 31, 2014 Commercial real estate Commercial and industrial loans and leases Consumer and other Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 9,055 $ 4,573 $ 273 $ 13,901 Charge-offs (631 ) (600 ) (2 ) (1,233 ) Recoveries 44 369 12 425 Provision 151 1,150 (65 ) 1,236 Ending balance $ 8,619 $ 5,492 $ 218 $ 14,329 Ending balance: individually evaluated for impairment $ 204 $ 33 $ 53 $ 290 Ending balance: collectively evaluated for impairment $ 8,414 $ 5,368 $ 165 $ 13,947 Ending balance: loans acquired with deteriorated credit quality $ 1 $ 91 $ — $ 92 Loans and lease receivables: Ending balance, gross $ 811,766 $ 450,819 $ 19,207 $ 1,281,792 Ending balance: individually evaluated for impairment $ 4,877 $ 1,669 $ 1,154 $ 7,700 Ending balance: collectively evaluated for impairment $ 803,475 $ 448,469 $ 18,053 $ 1,269,997 Ending balance: loans acquired with deteriorated credit quality $ 3,414 $ 681 $ — $ 4,095 Allowance as % of gross loans and leases 1.06 % 1.22 % 1.14 % 1.12 % As of and for the Year Ended December 31, 2013 Commercial real estate Commercial and industrial loans and leases Consumer and other Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 10,693 $ 4,336 $ 371 $ 15,400 Charge-offs (896 ) (14 ) (4 ) (914 ) Recoveries 353 16 5 374 Provision (1,095 ) 235 (99 ) (959 ) Ending balance $ 9,055 $ 4,573 $ 273 $ 13,901 Ending balance: individually evaluated for impairment $ 209 $ 131 $ 62 $ 402 Ending balance: collectively evaluated for impairment $ 8,846 $ 4,442 $ 211 $ 13,499 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and lease receivables: Ending balance, gross $ 645,111 $ 319,617 $ 17,244 $ 981,972 Ending balance: individually evaluated for impairment $ 5,379 $ 8,043 $ 1,375 $ 14,797 Ending balance: collectively evaluated for impairment $ 638,303 $ 311,574 $ 15,869 $ 965,746 Ending balance: loans acquired with deteriorated credit quality $ 1,429 $ — $ — $ 1,429 Allowance as % of gross loans and leases 1.40 % 1.43 % 1.58 % 1.42 % |
Net Investment In Direct Financing Leases | The Corporation’s net investment in direct financing leases consists of the following: As of December 31, 2015 2014 (In Thousands) Minimum lease payments receivable $ 27,361 $ 31,204 Estimated unguaranteed residual values in leased property 7,036 7,053 Initial direct costs 158 208 Unearned lease and residual income (3,462 ) (4,300 ) Investment in commercial direct financing leases $ 31,093 $ 34,165 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future aggregate maturities of minimum lease payments to be received are as follows: (In Thousands) Maturities during year ended December 31, 2016 $ 7,584 2017 6,636 2018 6,334 2019 3,787 2020 2,533 Thereafter 487 $ 27,361 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of premises and equipment at December 31, 2015 and 2014 is as follows: As of December 31, 2015 2014 (In Thousands) Land $ 650 $ 650 Building and leasehold improvements 2,879 2,776 Furniture and equipment 4,893 4,339 Construction and purchases in progress 28 52 8,450 7,817 Less: accumulated depreciation (4,496 ) (3,874 ) Total premises and equipment, net $ 3,954 $ 3,943 Depreciation expense was $746,000 , $385,000 and $313,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Changes in the gross carrying amount, accumulated amortization and net book value of core deposit intangibles were as follows: Year Ended December 31, 2015 2014 2013 (In Thousands) Core deposit intangibles: Gross carrying amount $ 347 $ 347 $ — Less: accumulated amortization (83 ) (12 ) — Net book value $ 264 $ 335 $ — Amortization during the period $ (71 ) $ (12 ) $ — |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense of core deposit intangibles for fiscal years 2016 through 2020 are as follows: Core deposit intangibles (In Thousands) Estimate for the year ended December 31, 2016 $ 62 2017 54 2018 47 2019 40 2020 35 Thereafter 26 $ 264 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Accrued Interest Receivable and Other Assets | A summary of accrued interest receivable and other assets is as follows: As of December 31, 2015 2014 (In Thousands) Accrued interest receivable $ 4,412 $ 3,932 Deferred tax assets, net 2,633 3,603 Investment in limited partnerships 3,215 3,193 Investment in community development entity 7,500 7,500 Investment in historic development entity 578 — Investment in Trust II 315 315 Fair value of interest rate swaps 552 575 Prepaid expenses 2,175 2,217 Other 3,502 4,882 Total accrued interest receivable and other assets $ 24,882 $ 26,217 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | The composition of deposits at December 31, 2015 and 2014 was as follows. Weighted average balances represent year-to-date averages. December 31, 2015 December 31, 2014 Balance Weighted average balance Weighted average rate Balance Weighted average balance Weighted average rate (Dollars in Thousands) Non-interest-bearing transaction accounts $ 231,199 $ 211,945 — % $ 204,328 $ 154,687 — % Interest-bearing transaction accounts 165,921 125,558 0.24 104,199 83,508 0.22 Money market accounts 612,642 602,842 0.55 575,766 493,322 0.52 Certificates of deposit 79,986 106,177 0.78 126,635 60,284 0.89 Wholesale deposits 487,483 450,460 1.43 427,340 416,202 1.49 Total deposits $ 1,577,231 $ 1,496,982 0.73 $ 1,438,268 $ 1,208,003 0.78 |
Time Deposits By Maturity | A summary of annual maturities of certificates of deposit outstanding, including wholesale deposits, at December 31, 2015 follows: (In Thousands) Maturities during the year ended December 31, 2016 $ 190,305 2017 103,109 2018 87,074 2019 66,751 2020 80,606 Thereafter 39,624 $ 567,469 |
FHLB Advances, Other Borrowin39
FHLB Advances, Other Borrowings and Junior Subordinated Notes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Composition of borrowed funds | The composition of borrowed funds at December 31, 2015 and 2014 was as follows. Weighted average balances represent year-to-date averages. December 31, 2015 December 31, 2014 Balance Weighted average balance Weighted average rate Balance Weighted average balance Weighted average rate (Dollars in Thousands) Federal funds purchased $ — $ 237 0.86 % $ — $ 237 0.82 % FHLB advances and other borrowings 9,790 15,457 1.14 10,058 5,093 0.56 Line of credit 2,510 1,619 3.18 1,010 13 3.30 Subordinated notes payable 22,926 22,926 6.98 22,926 13,362 7.07 Junior subordinated notes 10,315 10,315 10.78 10,315 10,315 10.78 $ 45,541 $ 50,554 5.84 $ 44,309 $ 29,020 7.24 Short-term borrowings $ 7,010 $ 2,010 Long-term borrowings 38,531 42,299 $ 45,541 $ 44,309 |
Stockholders' Equity and Regu40
Stockholders' Equity and Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table summarizes the Corporation’s and Banks’ capital ratios and the ratios required by their federal regulators at December 31, 2015 and 2014 , 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 December 31, 2015 Total capital (to risk-weighted assets) Consolidated $ 189,163 11.11 % $ 136,208 8.00 % N/A N/A First Business Bank 141,388 11.12 101,754 8.00 $ 127,193 10.00 % First Business Bank – Milwaukee 20,931 12.03 13,914 8.00 17,392 10.00 Alterra Bank 30,300 11.39 21,279 8.00 26,598 10.00 Tier 1 capital (to risk-weighted assets) Consolidated $ 149,920 8.81 $ 102,156 6.00 N/A N/A First Business Bank 128,852 10.13 76,316 6.00 $ 101,754 8.00 First Business Bank – Milwaukee 19,172 11.02 10,435 6.00 13,914 8.00 Alterra Bank 28,278 10.63 15,959 6.00 21,279 8.00 Common equity tier 1 capital (to risk-weighted assets) Consolidated $ 139,920 8.22 $ 76,617 4.50 N/A N/A First Business Bank 128,852 10.13 57,237 4.50 $ 110,669 6.50 First Business Bank — Milwaukee 19,172 11.02 7,826 4.50 82,675 6.50 Alterra Bank 28,278 10.63 11,969 4.50 11,305 6.50 Tier 1 capital (to average assets) Consolidated $ 149,920 8.63 $ 69,466 4.00 N/A N/A First Business Bank 128,852 10.44 49,359 4.00 $ 61,698 5.00 First Business Bank – Milwaukee 19,172 7.81 9,821 4.00 12,276 5.00 Alterra Bank 28,278 9.89 11,441 4.00 14,301 5.00 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, 2014 Total capital (to risk-weighted assets) Consolidated $ 173,263 12.13 % $ 114,253 8.00 % N/A N/A First Business Bank 131,411 12.19 86,272 8.00 $ 107,841 10.00 % First Business Bank – Milwaukee 19,128 12.47 12,274 8.00 15,343 10.00 Tier 1 capital (to risk-weighted assets) Consolidated $ 136,008 9.52 $ 57,127 4.00 N/A N/A First Business Bank 118,907 11.03 43,136 4.00 $ 64,704 6.00 First Business Bank – Milwaukee 17,641 11.50 6,137 4.00 9,206 6.00 Tier 1 capital (to average assets) Consolidated $ 136,008 8.71 $ 62,490 4.00 N/A N/A First Business Bank 118,907 10.13 46,960 4.00 $ 58,700 5.00 First Business Bank – Milwaukee 17,641 7.90 8,935 4.00 11,169 5.00 |
Reconciliation of stockholders' equity to federal regulatory capital | The following table reconciles stockholders’ equity to federal regulatory capital at December 31, 2015 and 2014 , respectively. As of December 31, 2015 2014 (In Thousands) Stockholders’ equity of the Corporation $ 150,832 $ 137,748 Unrealized and accumulated (gains) losses on specific items 80 (652 ) Disallowed servicing assets and purchased credit card relationships (370 ) (94 ) Disallowed goodwill and other intangibles (10,622 ) (10,994 ) Trust preferred securities 10,000 10,000 Tier 1 capital 149,920 136,008 Allowable general valuation allowances and subordinated debt 39,243 37,255 Risk-based capital $ 189,163 $ 173,263 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the Year Ended December 31, 2015 2014 2013 (Dollars in Thousands, Except Share Data) Basic earnings per common share Net income $ 16,514 $ 14,139 $ 13,746 Less: earnings allocated to participating securities 273 294 331 Basic earnings allocated to common shareholders $ 16,241 $ 13,845 $ 13,415 Weighted-average common shares outstanding, excluding participating securities 8,549,176 7,869,956 7,664,620 Basic earnings per common share $ 1.90 $ 1.76 $ 1.75 Diluted earnings per common share Earnings allocated to common shareholders $ 16,241 $ 13,845 $ 13,415 Reallocation of undistributed earnings — 1 2 Diluted earnings allocated to common shareholders $ 16,241 $ 13,846 $ 13,417 Weighted-average common shares outstanding, excluding participating securities 8,549,176 7,869,956 7,664,620 Dilutive effect of share-based awards 1,146 36,811 30,168 Weighted-average diluted common shares outstanding, excluding participating securities 8,550,322 7,906,767 7,694,788 Diluted earnings per common share $ 1.90 $ 1.75 $ 1.74 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table represents a summary of Stock Options activity for the periods indicated. For the Years Ended December 31, 2015 2014 2013 Options Weighted average price Options Weighted average price Options Weighted Outstanding at beginning of year 24,000 $ 12.50 102,000 $ 12.12 248,068 $ 11.22 Granted — — — — — — Exercised (24,000 ) 12.50 (78,000 ) 12.00 (139,368 ) 10.57 Expired — — — — (6,700 ) 11.00 Forfeited — — — — — — Outstanding at end of year — — 24,000 12.50 102,000 12.12 Options exercisable at end of year — — 24,000 12.50 102,000 12.12 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted share activity for the years ended December 31, 2015 , 2014 and 2013 was as follows: For the Year Ended December 31, 2015 2014 2013 Number of restricted shares Weighted average grant-date fair value Number of restricted shares Weighted average grant-date fair value Number of Weighted Nonvested balance at beginning of year 154,998 $ 16.97 169,418 $ 11.55 189,012 $ 9.10 Granted 53,790 22.52 64,522 22.49 50,060 16.50 Vested (64,874 ) 15.23 (78,942 ) 9.86 (69,654 ) 8.44 Forfeited (8,443 ) 15.03 — — — — Nonvested balance as of end of year 135,471 20.13 154,998 16.97 169,418 11.55 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | For the years ended December 31, 2015 , 2014 and 2013 , share-based compensation expense included in the Consolidated Statements of Income was as follows: For the Year Ended December 31, 2015 2014 2013 (In Thousands) Share-based compensation expense $ 1,063 $ 887 $ 660 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments for noncancelable operating leases for each of the five succeeding years and thereafter are as follows: (In Thousands) 2016 $ 1,227 2017 1,089 2018 1,030 2019 1,044 2020 1,036 Thereafter 5,518 $ 10,944 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Operating Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | A summary of other operating expenses for the years ended December 31, 2015 , 2014 and 2013 is as follows: Year Ended December 31, 2015 2014 2013 (In Thousands) Endowment to First Business Charitable Foundation $ — $ — $ 1,300 General and administrative expenses 1,759 1,024 938 Travel and other employee expenses 1,277 1,069 877 Computer software expenses 1,649 886 677 Partnership (income) loss (481 ) (774 ) 437 Foreclosed properties expenses 52 5 185 Other expenses 295 202 240 Total other operating expenses $ 4,551 $ 2,412 $ 4,654 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense applicable to income for the years ended December 31, 2015 , 2014 and 2013 consists of the following: Year Ended December 31, 2015 2014 2013 (In Thousands) Current: Federal $ 5,881 $ 4,235 $ 3,605 State 1,338 1,459 1,356 Current tax expense 7,219 5,694 4,961 Deferred: Federal 1,036 1,299 2,257 State 122 90 171 Deferred tax expense (benefit) 1,158 1,389 2,428 Total income tax expense $ 8,377 $ 7,083 $ 7,389 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the Corporation’s deferred tax assets and liabilities are as follows: At December 31, 2015 2014 (In Thousands) Deferred tax assets: Allowance for loan and lease losses $ 6,422 $ 5,501 Excess book basis over tax basis for net assets acquired 697 2,082 Deferred compensation 1,305 1,332 State net operating loss carryforwards 666 694 Write-down of foreclosed properties 14 1 Non-accrual loan interest 813 751 Capital loss carryforwards 33 32 Unrealized loss on securities 50 — Other 328 305 Total deferred tax assets before valuation allowance 10,328 10,698 Valuation allowance (68 ) (68 ) Total deferred tax assets 10,260 10,630 Deferred tax liabilities: Leasing and fixed asset activities 6,878 6,393 Loan servicing asset 612 364 Unrealized gain on securities — 137 Other 137 133 Total deferred tax liabilities 7,627 7,027 Net deferred tax asset $ 2,633 $ 3,603 |
Schedule of Reconciliation of the Change in Net Deferred Tax Assets to Deferred Tax Expense | A reconciliation of the change in net deferred tax assets to deferred tax expense follows: At December 31, 2015 2014 2013 (In Thousands) Change in net deferred tax assets $ (970 ) $ (119 ) $ (861 ) Deferred taxes allocated to other comprehensive income (188 ) 352 (1,567 ) Acquired deferred tax assets — (1,622 ) — Deferred income tax (expense) benefit $ (1,158 ) $ (1,389 ) $ (2,428 ) |
Schedule of Effective Income Tax Rate Reconciliation | he provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows: Year Ended December 31, 2015 2014 2013 (Dollars In Thousands) Income before income tax expense $ 24,891 $ 21,222 $ 21,135 Tax expense at statutory federal rate of 34.42% and 34% applied to income before income tax expense, respectively $ 8,568 $ 7,305 $ 7,275 State income tax, net of federal effect 968 1,000 906 Tax-exempt security and loan income, net of TEFRA adjustments (879 ) (736 ) (682 ) Change in valuation allowance — (1 ) 59 Bank-owned life insurance (330 ) (296 ) (291 ) Non-deductible transaction costs — 124 — Federal new market tax credit (246 ) (375 ) — Other 296 62 122 Total income tax expense $ 8,377 $ 7,083 $ 7,389 Effective tax rate 33.65 % 33.38 % 34.96 % |
Derivative Financial Instrume46
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Location and Fair Value of the Company's Derivative Financial Instruments | The table below provides information about the location and fair value of the Corporation’s derivative instruments as of December 31, 2015 and 2014 . Interest Rate Swap Contracts Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In Thousands) Derivatives not designated as hedging instruments December 31, 2015 Other assets $ 552 Other liabilities $ 552 December 31, 2014 Other assets $ 575 Other liabilities $ 575 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lending Related And Other Commitments | Financial instruments whose contract amounts represent potential credit risk at December 31, 2015 and 2014 , respectively, are as follows: At December 31, 2015 2014 (In Thousands) Commitments to extend credit, primarily commercial loans $ 512,627 $ 406,183 Standby letters of credit 18,622 17,555 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Using December 31, 2015 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: Municipal obligations $ — $ 4,283 $ — $ 4,283 Asset backed securities — 1,269 — 1,269 U.S. Government agency obligations - government-sponsored enterprises — 8,017 — 8,017 Collateralized mortgage obligations - government issued — 44,543 — 44,543 Collateralized mortgage obligations - government-sponsored enterprises — 82,436 — 82,436 Interest rate swaps — 552 — 552 Liabilities: Interest rate swaps $ — $ 552 $ — $ 552 Fair Value Measurements Using December 31, 2014 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: Municipal obligations $ — $ 578 $ — $ 578 Asset backed securities — 1,510 — 1,510 U.S. Government agency obligations - government-sponsored enterprises — 8,965 — 8,965 Collateralized mortgage obligations - government issued — 68,874 — 68,874 Collateralized mortgage obligations - government-sponsored enterprises — 64,771 — 64,771 Interest rate swaps — 575 — 575 Liabilities: Interest rate swaps $ — $ 575 $ — $ 575 |
Fair Value Measurements, Nonrecurring Basis | Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: As of and for the Year Ended December 31, 2015 Fair Value Measurements Using Total Gains (Losses) Balance at December 31, 2015 Level 1 Level 2 Level 3 (In Thousands) Impaired loans $ 17,763 $ — $ 11,518 $ 6,245 $ — Foreclosed properties 1,677 — 1,677 — (36 ) Loan servicing rights 1,563 — — 1,563 — As of and for the Year Ended December 31, 2014 Fair Value Measurements Using Total Gains (Losses) Balance at December 31, 2014 Level 1 Level 2 Level 3 (In Thousands) Impaired loans $ 8,565 $ — $ 7,025 $ 1,540 $ — Foreclosed properties 1,693 — 1,693 — (4 ) Loan servicing rights 943 — — 943 — |
Foreclosed Properties | The activity of the Corporation’s foreclosed properties is summarized as follows: As of and for the Year Ended December 31, 2015 2014 (In Thousands) Foreclosed properties at the beginning of the period $ 1,693 $ 333 Foreclosed properties acquired in acquisition, at fair value — 1,605 Loans transferred to foreclosed properties, at lower of cost or fair value 341 — Payments to priority lien holders of foreclosed properties — — Proceeds from sale of foreclosed properties (528 ) (255 ) Net gain on sale of foreclosed properties 207 14 Impairment valuation (36 ) (4 ) Foreclosed properties at the end of the period $ 1,677 $ 1,693 |
Fair Value, by Balance Sheet Grouping | The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: December 31, 2015 Carrying Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 113,564 $ 113,564 $ 100,063 $ 4,451 $ 9,050 Securities available-for-sale 140,548 140,548 — 140,548 — Securities held-to-maturity 37,282 37,558 — 37,558 — Loans held for sale 2,702 2,702 — 2,702 — Loans and lease receivables, net 1,414,649 1,445,773 — 11,518 1,434,255 Federal Home Loan Bank stock 2,843 2,843 — — 2,843 Cash surrender value of life insurance 28,298 28,298 28,298 — — Accrued interest receivable 4,412 4,412 4,412 — — Interest rate swaps 552 552 — 552 — Financial liabilities: Deposits $ 1,577,231 $ 1,577,838 $ 1,009,762 $ 568,076 $ — Federal Home Loan Bank and other borrowings 35,226 35,839 — 35,839 — Junior subordinated notes 10,315 6,939 — — 6,939 Interest rate swaps 552 552 — 552 — Accrued interest payable 1,766 1,766 1,766 — — Off balance sheet items: Standby letters of credit 183 183 — — 183 Commitments to extend credit — * * * * *Not meaningful December 31, 2014 Carrying Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 103,237 $ 103,227 $ 85,937 $ 6,890 $ 10,400 Securities available-for-sale 144,698 144,698 — 144,698 — Securities held-to-maturity 41,563 41,694 — 41,694 — Loans held for sale 1,340 1,340 — 1,340 — Loans and lease receivables, net 1,265,098 1,285,162 — 7,025 1,278,137 Federal Home Loan Bank stock 2,340 2,340 — — 2,340 Cash surrender value of life insurance 27,314 27,314 27,314 — — Accrued interest receivable 3,932 3,932 3,932 — — Interest rate swaps 575 575 — 575 — Financial liabilities: Deposits $ 1,438,268 $ 1,440,248 $ 884,292 $ 555,956 $ — Federal Home Loan Bank and other borrowings 33,994 34,590 — 34,590 — Junior subordinated notes 10,315 7,101 — — 7,101 Interest rate swaps 575 575 — 575 — Accrued interest payable 1,574 1,574 1,574 — — Off balance sheet items: Standby letters of credit 192 192 — — 192 Commitments to extend credit — * * * * *Not meaningful |
Condensed Parent Only Financi49
Condensed Parent Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheets As of December 31, 2015 2014 (In Thousands) Assets Cash and cash equivalents $ 1,099 $ 1,179 Investments in subsidiaries, at equity 187,530 170,923 Leasehold improvements and equipment, net 1,519 1,388 Other assets 2,849 2,695 Total assets $ 192,997 $ 176,185 Liabilities and Stockholders’ Equity Borrowed funds $ 35,751 $ 34,251 Other liabilities 6,414 4,186 Total liabilities 42,165 38,437 Stockholders’ equity 150,832 137,748 Total liabilities and stockholders’ equity $ 192,997 $ 176,185 |
Condensed Income Statement | Condensed Statements of Income For the Year Ended December 31, 2015 2014 2013 (In Thousands) Interest income $ — $ — $ — Interest expense 2,777 2,071 1,952 Net interest expense (2,777 ) (2,071 ) (1,952 ) Non-interest income Consulting and rental income from consolidated subsidiaries 13,398 10,776 9,738 Other 35 34 34 Total non-interest income 13,433 10,810 9,772 Non-interest expense 16,854 13,444 10,558 Loss before income tax benefit and equity in undistributed net income of consolidated subsidiaries (6,198 ) (4,705 ) (2,738 ) Income tax benefit (2,527 ) (1,659 ) (1,050 ) Loss before equity in undistributed net income of consolidated subsidiaries (3,671 ) (3,046 ) (1,688 ) Equity in undistributed net income of consolidated subsidiaries 20,185 17,185 15,434 Net income $ 16,514 $ 14,139 $ 13,746 |
Condensed Cash Flow Statement | Condensed Statements of Cash Flows For the Year Ended December 31, 2015 2014 2013 (In Thousands) Operating activities Net income $ 16,514 $ 14,139 $ 13,746 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of consolidated subsidiaries (20,185 ) (17,185 ) (15,434 ) Share-based compensation 448 416 311 Excess tax benefit from share-based compensation (162 ) (305 ) (145 ) Increase in other liabilities 2,390 1,002 867 Other, net (319 ) (842 ) (34 ) Net cash used in operating activities (1,314 ) (2,775 ) (689 ) Investing activities Dividends received from subsidiaries 7,034 8,000 8,000 Capital contributions to subsidiaries (3,000 ) (32,980 ) (850 ) Net cash provided by (used in) investing activities 4,034 (24,980 ) 7,150 Financing activities Net increase in short-term borrowed funds 1,500 1,000 — Proceeds from issuance of long-term debt, net of issuance costs — 14,469 — Repayment of long-term debt — (4,000 ) — Proceeds from issuance of common stock — 16,560 — Proceeds from exercise of stock options 300 936 1,474 Purchase of treasury stock (946 ) (1,795 ) (1,782 ) Excess tax benefit from share-based compensation 162 305 145 Dividends paid (3,816 ) (3,396 ) (2,475 ) Net cash (used in) provided by financing activities (2,800 ) 24,079 (2,638 ) (Decrease) increase in cash and cash equivalents (80 ) (3,676 ) 3,823 Cash and cash equivalents at the beginning of the period 1,179 4,855 1,032 Cash and cash equivalents at the end of the period $ 1,099 $ 1,179 $ 4,855 |
Condensed Quarterly Earnings (T
Condensed Quarterly Earnings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2015 2014 First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in Thousands, Except per share data) Interest income $ 18,216 $ 17,520 $ 18,135 $ 18,600 $ 13,402 $ 13,565 $ 13,871 $ 16,863 Interest expense (3,286 ) (3,332 ) (3,525 ) (3,688 ) (2,601 ) (2,766 ) (2,936 ) (3,268 ) Net interest income 14,930 14,188 14,610 14,912 10,801 10,799 10,935 13,595 Provision for loan losses (684 ) (520 ) (287 ) (1,895 ) (180 ) 91 89 (1,236 ) Non-interest income 3,848 4,126 4,102 4,935 2,321 2,358 2,459 2,965 Non-interest expense (11,732 ) (11,974 ) (11,984 ) (11,684 ) (7,852 ) (7,749 ) (8,047 ) (10,127 ) Income before income tax expense 6,362 5,820 6,441 6,268 5,090 5,499 5,436 5,197 Income taxes (2,170 ) (1,962 ) (2,060 ) (2,185 ) (1,753 ) (1,994 ) (1,883 ) (1,453 ) Net income $ 4,192 $ 3,858 $ 4,381 $ 4,083 $ 3,337 $ 3,505 $ 3,553 $ 3,744 Per common share data: Basic earnings per common share $ 0.48 $ 0.45 $ 0.50 $ 0.47 $ 0.43 $ 0.44 $ 0.45 $ 0.44 Diluted earnings per common share 0.48 0.45 0.50 0.47 0.42 0.44 0.45 0.44 Dividends declared per share 0.11 0.11 0.11 0.11 0.105 0.105 0.105 0.105 All per share amounts have been adjusted to reflect the 2-for-1 stock split in the form of a 100% stock dividend completed in August 2015. |
Nature of Operations and Summ51
Nature of Operations and Summary of Significant Accounting Policies Direct Financing Leases (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Unguaranteed Residual Percentage Of Cost [Line Items] | |
Unguaranteed residual percent of cost | 3.00% |
Maximum | |
Unguaranteed Residual Percentage Of Cost [Line Items] | |
Unguaranteed residual percent of cost | 20.00% |
Nature of Operations and Summ52
Nature of Operations and Summary of Significant Accounting Policies Leasehold Improvements and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Equipment, useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Equipment, useful life | 10 years |
Nature of Operations and Summ53
Nature of Operations and Summary of Significant Accounting Policies Federal Home Loan Bank Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investment Holdings [Line Items] | ||
Investment in Federal Home Loan Bank and Federal Reserve Bank stock, at cost | $ 1,800 | $ 1,800 |
Federal Reserve Bank Stock | 1,100 | 533 |
FHLB Stock | ||
Investment Holdings [Line Items] | ||
Other than temporary impairment losses, investments | $ 0 | $ 0 |
Nature of Operations and Summ54
Nature of Operations and Summary of Significant Accounting Policies Other Investments (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Investment In Limited Partnerships Accounting Treatment [Line Items] | |
Maximum ownership percentage that is not consolidated | 50.00% |
Investment in corporations minimum ownership percentage for accounting for using the equity method | 20.00% |
Investment in corporations maximum ownership percentage for accounting for at cost | 20.00% |
Investment in limited partnerships maximum ownership percentage for accounting for at cost | 3.00% |
Minimum | |
Investment In Limited Partnerships Accounting Treatment [Line Items] | |
Investment in limited partnerships ownership percentage for accounting for using the equity method | 3.00% |
Maximum | |
Investment In Limited Partnerships Accounting Treatment [Line Items] | |
Investment in limited partnerships ownership percentage for accounting for using the equity method | 50.00% |
Nature of Operations and Summ55
Nature of Operations and Summary of Significant Accounting Policies Other Comprehensive Income (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Reclassification out of accumulated other comprehensive income | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Other than temporary impairment losses, investments, portion recognized in earnings, net | $ 0 |
Nature of Operations and Summ56
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Loans Receivable Held-for-sale, Amount | $ 2,702 | $ 1,340 | |
Loans and leases receivable, impaired, interest income recognized, change in present value attributable to passage of time | 0 | ||
Trading securities | 0 | 0 | |
Bank owned life insurance death benefits | 67,100 | ||
Borrowings against cash surrender value of bank owned life insurance | 0 | 0 | |
Stock-based compensation related to stock options recognized in consolidated financial statements | $ 0 | $ 0 | $ 0 |
Cash and Cash Equivalents (Narr
Cash and Cash Equivalents (Narrative Disclosures) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Cash and due from banks | $ 14,640 | $ 14,881 |
Required reserves in the form of either vault cash or deposits held at the Federal Reserve Bank | 3,900 | 1,181 |
Federal Reserve Bank balances | 84,900 | 70,500 |
Short-term investments | 98,924 | 88,356 |
Federal funds sold | $ 40 | $ 22 |
Securities (Available-for-Sale
Securities (Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities | ||
Amortized cost | $ 140,204 | $ 143,636 |
Gross unrealized holding gains | 973 | 1,629 |
Gross unrealized holding losses | (629) | (567) |
Estimated fair value | 140,548 | 144,698 |
U.S. Government agency obligations - government-sponsored enterprises | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 8,047 | 9,046 |
Gross unrealized holding gains | 2 | 0 |
Gross unrealized holding losses | (32) | (81) |
Estimated fair value | 8,017 | 8,965 |
Municipal obligations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 4,278 | 573 |
Gross unrealized holding gains | 12 | 5 |
Gross unrealized holding losses | (7) | 0 |
Estimated fair value | 4,283 | 578 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 1,327 | 1,514 |
Gross unrealized holding gains | 0 | 0 |
Gross unrealized holding losses | (58) | (4) |
Estimated fair value | 1,269 | 1,510 |
Collateralized mortgage obligations - government issued | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 43,845 | 67,740 |
Gross unrealized holding gains | 814 | 1,390 |
Gross unrealized holding losses | (116) | (256) |
Estimated fair value | 44,543 | 68,874 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 82,707 | 64,763 |
Gross unrealized holding gains | 145 | 234 |
Gross unrealized holding losses | (416) | (226) |
Estimated fair value | $ 82,436 | $ 64,771 |
Securities Securities (Held-to-
Securities Securities (Held-to-Maturity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $ 37,282 | $ 41,563 |
Gross unrecognized holding gains | 377 | 216 |
Gross unrecognized holding losses | (101) | (85) |
Estimated fair value | 37,558 | 41,694 |
U.S. Government agency obligations - government-sponsored enterprises | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 1,495 | 1,490 |
Gross unrecognized holding gains | 1 | 0 |
Gross unrecognized holding losses | (11) | (17) |
Estimated fair value | 1,485 | 1,473 |
Municipal obligations | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 16,038 | 16,088 |
Gross unrecognized holding gains | 332 | 85 |
Gross unrecognized holding losses | (5) | (18) |
Estimated fair value | 16,365 | 16,155 |
Asset-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 0 | 0 |
Gross unrecognized holding gains | 0 | 0 |
Gross unrecognized holding losses | 0 | 0 |
Estimated fair value | 0 | 0 |
Collateralized mortgage obligations - government issued | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 11,718 | 14,505 |
Gross unrecognized holding gains | 32 | 57 |
Gross unrecognized holding losses | (41) | (31) |
Estimated fair value | 11,709 | 14,531 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 8,031 | 9,480 |
Gross unrecognized holding gains | 12 | 74 |
Gross unrecognized holding losses | (44) | (19) |
Estimated fair value | $ 7,999 | $ 9,535 |
Securities (Contractual Maturit
Securities (Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost Available for Sale | ||
Due in one year or less | $ 0 | |
Due in one year through five years | 13,511 | |
Due in five through ten years | 88,690 | |
Due in over ten years | 38,003 | |
Amortized cost | 140,204 | $ 143,636 |
Estimated Fair Value Available for Sale | ||
Due in one year or less | 0 | |
Due in one year through five years | 13,505 | |
Due in five through ten years | 88,902 | |
Due in over ten years | 38,141 | |
Estimated fair value | 140,548 | 144,698 |
Amortized Cost Held to Maturity | ||
Due in one year or less | 0 | |
Due in one year through five years | 3,890 | |
Due in five through ten years | 13,643 | |
Due in over ten years | 19,749 | |
Amortized cost | 37,282 | 41,563 |
Estimated Fair Value Held to Maturity | ||
Due in one year or less | 0 | |
Due in one year through five years | 3,899 | |
Due in five through ten years | 13,950 | |
Due in over ten years | 19,709 | |
Estimated fair value | $ 37,558 | $ 41,694 |
Securities (Unrealized Losses A
Securities (Unrealized Losses Available-for-Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value | ||
Less than 12 months | $ 70,573 | $ 42,185 |
12 months or longer | 9,385 | 21,518 |
Total | 79,958 | 63,703 |
Unrealized losses | ||
Less than 12 months | 470 | 159 |
12 months or longer | 159 | 408 |
Total | 629 | 567 |
U.S. Government agency obligations - government-sponsored enterprises | ||
Fair value | ||
Less than 12 months | 3,536 | 3,486 |
12 months or longer | 1,981 | 5,479 |
Total | 5,517 | 8,965 |
Unrealized losses | ||
Less than 12 months | 13 | 12 |
12 months or longer | 19 | 69 |
Total | 32 | 81 |
Municipal obligations | ||
Fair value | ||
Less than 12 months | 2,403 | 0 |
12 months or longer | 0 | 0 |
Total | 2,403 | 0 |
Unrealized losses | ||
Less than 12 months | 7 | 0 |
12 months or longer | 0 | 0 |
Total | 7 | 0 |
Asset-backed securities | ||
Fair value | ||
Less than 12 months | 1,269 | 0 |
12 months or longer | 0 | 1,510 |
Total | 1,269 | 1,510 |
Unrealized losses | ||
Less than 12 months | 58 | 0 |
12 months or longer | 0 | 4 |
Total | 58 | 4 |
Collateralized mortgage obligations - government issued | ||
Fair value | ||
Less than 12 months | 3,373 | 9,201 |
12 months or longer | 5,687 | 9,536 |
Total | 9,060 | 18,737 |
Unrealized losses | ||
Less than 12 months | 19 | 50 |
12 months or longer | 97 | 206 |
Total | 116 | 256 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Fair value | ||
Less than 12 months | 59,992 | 29,498 |
12 months or longer | 1,717 | 4,993 |
Total | 61,709 | 34,491 |
Unrealized losses | ||
Less than 12 months | 373 | 97 |
12 months or longer | 43 | 129 |
Total | $ 416 | $ 226 |
Securities Securities (Unrealiz
Securities Securities (Unrealized Losses Held-to-Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value | ||
Less than 12 months | $ 12,122 | $ 10,035 |
12 months or longer | 1,199 | 0 |
Total | 13,321 | 10,035 |
Unrecognized losses | ||
Less than 12 months | 89 | 85 |
12 months or longer | 12 | 0 |
Total | 101 | 85 |
U.S. Government agency obligations - government-sponsored enterprises | ||
Fair value | ||
Less than 12 months | 0 | 1,490 |
12 months or longer | 1,000 | 0 |
Total | 1,000 | 1,490 |
Unrecognized losses | ||
Less than 12 months | 0 | 17 |
12 months or longer | 11 | 0 |
Total | 11 | 17 |
Municipal obligations | ||
Fair value | ||
Less than 12 months | 436 | 2,222 |
12 months or longer | 199 | 0 |
Total | 635 | 2,222 |
Unrecognized losses | ||
Less than 12 months | 4 | 18 |
12 months or longer | 1 | 0 |
Total | 5 | 18 |
Collateralized mortgage obligations - government issued | ||
Fair value | ||
Less than 12 months | 6,518 | 3,247 |
12 months or longer | 0 | 0 |
Total | 6,518 | 3,247 |
Unrecognized losses | ||
Less than 12 months | 41 | 31 |
12 months or longer | 0 | 0 |
Total | 41 | 31 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Fair value | ||
Less than 12 months | 5,168 | 3,076 |
12 months or longer | 0 | 0 |
Total | 5,168 | 3,076 |
Unrecognized losses | ||
Less than 12 months | 44 | 19 |
12 months or longer | 0 | 0 |
Total | $ 44 | $ 19 |
Securities (Narrative Disclosur
Securities (Narrative Disclosures) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)securities | Dec. 31, 2014USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sale of available-for-sale securities | $ | $ 0 | $ 0 |
Available-for-sale securities pledged as collateral | $ | $ 23,000 | 32,700 |
Available-for-sale securities in unrealized loss positions | securities | 87 | |
Available-for-sale securities in an unrealized loss position, twelve months or greater | securities | 11 | |
Other than temporary impairment on available-for-sale securities | $ | $ 0 | 0 |
Held-to-maturity securities in unrealized loss positions | securities | 14 | |
Held-to-maturity securities in an unrealized loss position, twelve months or greater | securities | 3 | |
Other than temporary impairment on held-to-maturity securities | $ | $ 0 | $ 0 |
Loan and Lease Receivables, I64
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Loan Composition) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | |||
Commercial real estate — owner occupied | $ 176,322 | $ 163,884 | |
Commercial real estate — non-owner occupied | 436,901 | 417,962 | |
Construction and land development | 160,404 | 121,160 | |
Multi-family | 80,254 | 72,578 | |
1-4 family (1) | 51,607 | 36,182 | |
Total commercial real estate | 905,488 | 811,766 | |
Commercial and industrial (2) | 473,592 | 416,654 | |
Direct financing leases, net | 31,093 | 34,165 | |
Home equity and second mortgages | 8,237 | 7,866 | |
Other | 16,319 | 11,341 | |
Total consumer and other | 24,556 | 19,207 | |
Total gross loans and leases receivable | 1,434,729 | 1,281,792 | $ 981,972 |
Allowance for loan and lease losses | 16,316 | 14,329 | |
Deferred loan fees | 1,062 | 1,025 | |
Loans and Leases Receivable and Loans Held for Sale, net | $ 1,417,351 | $ 1,266,438 |
Loan and Lease Receivables, I65
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 (Fair Value of Credit Impaired Loans Acquired) (Details) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Credit Impaired Loans Acquired [Line Items] | ||
Contractually Required Payments | $ 5,291 | $ 6,874 |
Fair value of credit impaired loans acquired | $ 3,250 | $ 4,025 |
Loan and Lease Receivables, I66
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 (Accretable Yield) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||
Beginning balance | $ 676 | $ 683 |
Accretion | (50) | (7) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications (to) from Nonaccretable Difference | (60) | 0 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Non-Credit Related Changes in Accretable Due to Changes in Expected Cash Flows | (152) | 0 |
Ending balance | $ 414 | $ 676 |
Loan and Lease Receivables, I67
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Loans by Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial real estate — owner occupied | $ 176,322 | $ 163,884 | |
Commercial real estate — non-owner occupied | 436,901 | 417,962 | |
Construction and land development | 160,404 | 121,160 | |
Multi-family | 80,254 | 72,578 | |
1-4 family (1) | 51,607 | 36,182 | |
Total commercial real estate | 905,488 | 811,766 | |
Commercial and industrial (2) | 473,592 | 416,654 | |
Direct financing leases, net | 31,093 | 34,165 | |
Home equity and second mortgages | 8,237 | 7,866 | |
Other | 16,319 | 11,341 | |
Total consumer and other | 24,556 | 19,207 | |
Total gross loans and leases receivable | $ 1,434,729 | $ 1,281,792 | $ 981,972 |
Category as a % of total portfolio | 100.00% | 100.00% | |
Category I | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial real estate — owner occupied | $ 156,379 | $ 131,094 | |
Commercial real estate — non-owner occupied | 410,517 | 378,671 | |
Construction and land development | 151,508 | 100,934 | |
Multi-family | 79,368 | 70,897 | |
1-4 family (1) | 42,389 | 25,997 | |
Total commercial real estate | 840,161 | 707,593 | |
Commercial and industrial (2) | 431,598 | 383,755 | |
Direct financing leases, net | 29,514 | 32,756 | |
Home equity and second mortgages | 7,497 | 7,039 | |
Other | 15,616 | 10,570 | |
Total consumer and other | 23,113 | 17,609 | |
Total gross loans and leases receivable | $ 1,324,386 | $ 1,141,713 | |
Category as a % of total portfolio | 92.30% | 89.07% | |
Category II | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial real estate — owner occupied | $ 7,654 | $ 15,592 | |
Commercial real estate — non-owner occupied | 20,662 | 20,823 | |
Construction and land development | 3,092 | 8,193 | |
Multi-family | 884 | 751 | |
1-4 family (1) | 3,985 | 5,278 | |
Total commercial real estate | 36,277 | 50,637 | |
Commercial and industrial (2) | 7,139 | 18,524 | |
Direct financing leases, net | 1,013 | 1,120 | |
Home equity and second mortgages | 0 | 205 | |
Other | 48 | 50 | |
Total consumer and other | 48 | 255 | |
Total gross loans and leases receivable | $ 44,477 | $ 70,536 | |
Category as a % of total portfolio | 3.10% | 5.50% | |
Category III | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial real estate — owner occupied | $ 9,311 | $ 16,621 | |
Commercial real estate — non-owner occupied | 3,408 | 17,498 | |
Construction and land development | 874 | 6,876 | |
Multi-family | 0 | 913 | |
1-4 family (1) | 1,865 | 3,336 | |
Total commercial real estate | 15,458 | 45,244 | |
Commercial and industrial (2) | 25,706 | 12,026 | |
Direct financing leases, net | 528 | 289 | |
Home equity and second mortgages | 141 | 189 | |
Other | 0 | 0 | |
Total consumer and other | 141 | 189 | |
Total gross loans and leases receivable | $ 41,833 | $ 57,748 | |
Category as a % of total portfolio | 2.92% | 4.51% | |
Category IV | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial real estate — owner occupied | $ 2,978 | $ 577 | |
Commercial real estate — non-owner occupied | 2,314 | 970 | |
Construction and land development | 4,930 | 5,157 | |
Multi-family | 2 | 17 | |
1-4 family (1) | 3,368 | 1,571 | |
Total commercial real estate | 13,592 | 8,292 | |
Commercial and industrial (2) | 9,149 | 2,349 | |
Direct financing leases, net | 38 | 0 | |
Home equity and second mortgages | 599 | 433 | |
Other | 655 | 721 | |
Total consumer and other | 1,254 | 1,154 | |
Total gross loans and leases receivable | $ 24,033 | $ 11,795 | |
Category as a % of total portfolio | 1.68% | 0.92% |
Loan and Lease Receivables, I68
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | $ 5,853 | $ 2,786 | |
Current | 1,428,876 | 1,279,006 | |
Non-accruing loans and leases | 22,298 | 9,792 | |
Total gross loans and leases receivable | $ 1,434,729 | $ 1,281,792 | $ 981,972 |
30 to 59 days past due, percent of total portfolio | 0.21% | 0.03% | |
60 to 89 days past due, percent of total portfolio | 0.04% | 0.05% | |
Greater than 90 days past due, percent of portfolio | 0.16% | 0.14% | |
Past due, percent of total portfolio | 0.41% | 0.22% | |
Current, percent of total portfolio | 99.59% | 99.78% | |
Gross loans, percent of total portfolio | 100.00% | 100.00% | |
Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | $ 473 | $ 0 | |
Current | 175,850 | 163,884 | |
Non-accruing loans and leases | 2,907 | 500 | |
Total gross loans and leases receivable | 176,323 | 163,884 | |
Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 215 | |
Current | 436,900 | 417,747 | |
Non-accruing loans and leases | 1,678 | 286 | |
Total gross loans and leases receivable | 436,900 | 417,962 | |
Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 397 | 193 | |
Current | 160,007 | 120,967 | |
Non-accruing loans and leases | 4,729 | 4,932 | |
Total gross loans and leases receivable | 160,404 | 121,160 | |
Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 80,254 | 72,578 | |
Non-accruing loans and leases | 2 | 17 | |
Total gross loans and leases receivable | 80,254 | 72,578 | |
1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 1,437 | 412 | |
Current | 50,170 | 35,770 | |
Non-accruing loans and leases | 2,611 | 690 | |
Total gross loans and leases receivable | 51,607 | 36,182 | |
Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 2,641 | 1,246 | |
Current | 470,951 | 415,408 | |
Non-accruing loans and leases | 9,136 | 2,318 | |
Total gross loans and leases receivable | 473,592 | 416,654 | |
Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 31,093 | 34,165 | |
Non-accruing loans and leases | 38 | 0 | |
Total gross loans and leases receivable | 31,093 | 34,165 | |
Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 250 | 0 | |
Current | 7,987 | 7,866 | |
Non-accruing loans and leases | 542 | 329 | |
Total gross loans and leases receivable | 8,237 | 7,866 | |
Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 655 | 720 | |
Current | 15,664 | 10,621 | |
Non-accruing loans and leases | 655 | 720 | |
Total gross loans and leases receivable | 16,319 | 11,341 | |
Accruing loans and leases | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 78 | 0 | |
Current | 1,412,353 | 1,272,000 | |
Accruing loans and leases | 1,412,431 | 1,272,000 | |
Accruing loans and leases | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 173,416 | 163,384 | |
Accruing loans and leases | 173,416 | 163,384 | |
Accruing loans and leases | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 435,222 | 417,676 | |
Accruing loans and leases | 435,222 | 417,676 | |
Accruing loans and leases | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 155,675 | 116,228 | |
Accruing loans and leases | 155,675 | 116,228 | |
Accruing loans and leases | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 80,252 | 72,561 | |
Accruing loans and leases | 80,252 | 72,561 | |
Accruing loans and leases | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 78 | 0 | |
Current | 48,918 | 35,492 | |
Accruing loans and leases | 48,996 | 35,492 | |
Accruing loans and leases | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 464,456 | 414,336 | |
Accruing loans and leases | 464,456 | 414,336 | |
Accruing loans and leases | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 31,055 | 34,165 | |
Accruing loans and leases | 31,055 | 34,165 | |
Accruing loans and leases | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 7,695 | 7,537 | |
Accruing loans and leases | 7,695 | 7,537 | |
Accruing loans and leases | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 15,664 | 10,621 | |
Accruing loans and leases | 15,664 | 10,621 | |
Non-accruing loans and leases | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 5,775 | 2,786 | |
Current | 16,523 | 7,006 | |
Non-accruing loans and leases | 22,298 | 9,792 | |
Non-accruing loans and leases | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 473 | 0 | |
Current | 2,434 | 500 | |
Non-accruing loans and leases | 2,907 | 500 | |
Non-accruing loans and leases | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 215 | |
Current | 1,678 | 71 | |
Non-accruing loans and leases | 1,678 | 286 | |
Non-accruing loans and leases | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 397 | 193 | |
Current | 4,332 | 4,739 | |
Non-accruing loans and leases | 4,729 | 4,932 | |
Non-accruing loans and leases | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 2 | 17 | |
Non-accruing loans and leases | 2 | 17 | |
Non-accruing loans and leases | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 1,359 | 412 | |
Current | 1,252 | 278 | |
Non-accruing loans and leases | 2,611 | 690 | |
Non-accruing loans and leases | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 2,641 | 1,246 | |
Current | 6,495 | 1,072 | |
Non-accruing loans and leases | 9,136 | 2,318 | |
Non-accruing loans and leases | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 38 | 0 | |
Non-accruing loans and leases | 38 | 0 | |
Non-accruing loans and leases | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 250 | 0 | |
Current | 292 | 329 | |
Non-accruing loans and leases | 542 | 329 | |
Non-accruing loans and leases | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 655 | 720 | |
Current | 0 | 0 | |
Non-accruing loans and leases | 655 | 720 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 2,982 | 364 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 397 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 508 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 2,077 | 364 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 78 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 78 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Accruing loans and leases | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 2,904 | 364 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 397 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 430 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 2,077 | 364 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Non-accruing loans and leases | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 507 | 660 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 473 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 215 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 193 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 34 | 106 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 146 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Accruing loans and leases | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 507 | 660 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 473 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 215 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 193 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 34 | 106 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 146 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Non-accruing loans and leases | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 2,364 | 1,762 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 895 | 306 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 564 | 736 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 250 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 655 | 720 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Accruing loans and leases | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 2,364 | 1,762 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | Commercial real estate — owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | Construction and land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | Multi-family | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | 1-4 family (1) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 895 | 306 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | Commercial & industrial (2) | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 564 | 736 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | Direct financing leases, net | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | Home equity and second mortgages | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | 250 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non-accruing loans and leases | Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due | $ 655 | $ 720 |
Loan and Lease Receivables, I69
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Non-accrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | $ 22,298 | $ 9,792 | |
Foreclosed properties, net | 1,677 | 1,693 | $ 333 |
Total non-performing assets | 23,975 | 11,485 | |
Performing troubled debt restructurings | 1,735 | 2,003 | $ 371 |
Total impaired assets | $ 25,710 | $ 13,488 | |
Total non-accrual loans and leases to gross loans and leases | 1.55% | 0.76% | |
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 1.67% | 0.89% | |
Total non-performing assets to total assets | 1.34% | 0.70% | |
Allowance for loan and lease losses to gross loans and leases | 1.14% | 1.12% | 1.42% |
Allowance for loan and lease losses to non-accrual loans and leases | 73.17% | 146.33% | |
Commercial real estate — owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | $ 2,907 | $ 500 | |
Commercial real estate — non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | 1,678 | 286 | |
Construction and land development | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | 4,729 | 4,932 | |
Multi-family | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | 2 | 17 | |
1-4 family (1) | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | 2,611 | 690 | |
Total commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | $ 11,927 | $ 6,425 | |
Allowance for loan and lease losses to gross loans and leases | 1.24% | 1.06% | 1.40% |
Commercial & industrial (2) | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | $ 9,136 | $ 2,318 | |
Direct financing leases, net | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | 38 | 0 | |
Home equity and second mortgages | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | 542 | 329 | |
Other | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | 655 | 720 | |
Total consumer and other loans | |||
Financing Receivable, Impaired [Line Items] | |||
Non-accruing loans and leases | $ 1,197 | $ 1,049 | |
Allowance for loan and lease losses to gross loans and leases | 2.89% | 1.14% | 1.58% |
Loan and Lease Receivables, I70
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) $ in Thousands | Dec. 31, 2015USD ($)loans | Dec. 31, 2014USD ($)loans |
Troubled debt restructurings: | ||
Number of Loans | loans | 42 | 40 |
Pre-Modification Recorded Investment | $ 20,721 | $ 13,495 |
Post-Modification Recorded Investment | $ 17,890 | $ 9,396 |
Commercial real estate — owner occupied | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 3 | 2 |
Pre-Modification Recorded Investment | $ 1,209 | $ 624 |
Post-Modification Recorded Investment | $ 1,188 | $ 577 |
Commercial real estate — non-owner occupied | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 5 | 5 |
Pre-Modification Recorded Investment | $ 1,150 | $ 1,095 |
Post-Modification Recorded Investment | $ 904 | $ 970 |
Construction and land development | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 3 | 4 |
Pre-Modification Recorded Investment | $ 6,034 | $ 6,260 |
Post-Modification Recorded Investment | $ 4,593 | $ 5,157 |
Multi-family | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 1 | 1 |
Pre-Modification Recorded Investment | $ 184 | $ 184 |
Post-Modification Recorded Investment | $ 2 | $ 17 |
1-4 family (1) | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 15 | 16 |
Pre-Modification Recorded Investment | $ 2,035 | $ 2,119 |
Post-Modification Recorded Investment | $ 1,869 | $ 1,368 |
Commercial & industrial (2) | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 10 | 4 |
Pre-Modification Recorded Investment | $ 7,572 | $ 361 |
Post-Modification Recorded Investment | $ 8,330 | $ 155 |
Home equity and second mortgages | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 4 | 6 |
Pre-Modification Recorded Investment | $ 461 | $ 772 |
Post-Modification Recorded Investment | $ 349 | $ 431 |
Other | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 1 | 2 |
Pre-Modification Recorded Investment | $ 2,076 | $ 2,080 |
Post-Modification Recorded Investment | $ 655 | $ 721 |
Loan and Lease Receivables, I71
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Troubled Debt Restructurings by Modification Type) (Details) $ in Thousands | Dec. 31, 2015USD ($)securitiesloans | Dec. 31, 2014USD ($)securitiesloans |
Troubled debt restructurings: | ||
Number of Loans | loans | 42 | 40 |
Post-Modification Recorded Investment | $ 17,890 | $ 9,396 |
Commercial & industrial (2) | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 10 | 4 |
Post-Modification Recorded Investment | $ 8,330 | $ 155 |
Troubled Debt Restructuring, Combination of Extension of Term and Interest Rate Concession [Member] | Commercial real estate | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 25 | 26 |
Post-Modification Recorded Investment | $ 8,477 | $ 7,984 |
Troubled Debt Restructuring, Combination of Extension of Term and Interest Rate Concession [Member] | Commercial & industrial (2) | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 10 | 4 |
Post-Modification Recorded Investment | $ 8,330 | $ 155 |
Troubled Debt Restructuring, Combination of Extension of Term and Interest Rate Concession [Member] | Consumer and other | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 4 | 5 |
Post-Modification Recorded Investment | $ 349 | $ 400 |
Troubled Debt Restructuring, Interest Rate Concession [Member] | Commercial real estate | ||
Troubled debt restructurings: | ||
Number of Loans | securities | 1 | 1 |
Post-Modification Recorded Investment | $ 55 | $ 65 |
Troubled Debt Restructuring, Extension of Term [Member] | Commercial real estate | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 1 | 1 |
Post-Modification Recorded Investment | $ 24 | $ 39 |
Troubled Debt Restructuring, Extension of Term [Member] | Consumer and other | ||
Troubled debt restructurings: | ||
Number of Loans | loans | 1 | 3 |
Post-Modification Recorded Investment | $ 655 | $ 753 |
Loan and Lease Receivables, I72
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Impaired Loans and Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Recorded investment | |||
With no impairment reserve recorded | $ 15,175 | $ 11,270 | $ 8,200 |
With impairment reserve recorded | 8,858 | 525 | 8,026 |
Total | 24,033 | 11,795 | 16,226 |
Unpaid principal balance | |||
With no impairment reserve recorded | 19,026 | 15,623 | 12,115 |
With impairment reserve recorded | 8,863 | 565 | 8,066 |
Total | 27,889 | 16,188 | 20,181 |
Impairment reserve | |||
Impairment reserve | 1,113 | 290 | 402 |
Average recorded investment | |||
With no impairment reserve recorded | 9,721 | 13,926 | 10,824 |
With impairment reserve recorded | 1,722 | 548 | 1,260 |
Total | 11,443 | 14,474 | 12,084 |
Foregone interest income | |||
With no impairment reserve recorded | 597 | 843 | 816 |
With impairment reserve recorded | 153 | 27 | 71 |
Total | 750 | 870 | 887 |
Interest income recognized | |||
With no impairment reserve recorded | 85 | 740 | 221 |
With impairment reserve recorded | 2 | 0 | 0 |
Total | 87 | 740 | 221 |
Net foregone interest income | |||
With no impairment reserve recorded | 512 | 103 | 595 |
With impairment reserve recorded | 151 | 27 | 71 |
Total | 663 | 130 | 666 |
Commercial real estate — owner occupied | |||
Recorded investment | |||
With no impairment reserve recorded | 2,164 | 577 | 339 |
With impairment reserve recorded | 814 | 0 | 0 |
Total | 2,978 | 577 | 339 |
Unpaid principal balance | |||
With no impairment reserve recorded | 2,164 | 577 | 339 |
With impairment reserve recorded | 814 | 0 | 0 |
Total | 2,978 | 577 | 339 |
Impairment reserve | |||
Impairment reserve | 20 | 0 | 0 |
Average recorded investment | |||
With no impairment reserve recorded | 712 | 484 | 715 |
With impairment reserve recorded | 215 | 0 | 0 |
Total | 927 | 484 | 715 |
Foregone interest income | |||
With no impairment reserve recorded | 53 | 30 | 57 |
With impairment reserve recorded | 7 | 0 | 0 |
Total | 60 | 30 | 57 |
Interest income recognized | |||
With no impairment reserve recorded | 12 | 79 | 50 |
With impairment reserve recorded | 2 | 0 | 0 |
Total | 14 | 79 | 50 |
Net foregone interest income | |||
With no impairment reserve recorded | 41 | (49) | 7 |
With impairment reserve recorded | 5 | 0 | 0 |
Total | 46 | (49) | 7 |
Commercial real estate — non-owner occupied | |||
Recorded investment | |||
With no impairment reserve recorded | 2,314 | 921 | 229 |
With impairment reserve recorded | 0 | 49 | 54 |
Total | 2,314 | 970 | 283 |
Unpaid principal balance | |||
With no impairment reserve recorded | 2,355 | 921 | 229 |
With impairment reserve recorded | 0 | 89 | 94 |
Total | 2,355 | 1,010 | 323 |
Impairment reserve | |||
Impairment reserve | 0 | 49 | 54 |
Average recorded investment | |||
With no impairment reserve recorded | 962 | 349 | 1,586 |
With impairment reserve recorded | 0 | 52 | 88 |
Total | 962 | 401 | 1,674 |
Foregone interest income | |||
With no impairment reserve recorded | 25 | 22 | 198 |
With impairment reserve recorded | 0 | 4 | 6 |
Total | 25 | 26 | 204 |
Interest income recognized | |||
With no impairment reserve recorded | 0 | 0 | 17 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 0 | 0 | 17 |
Net foregone interest income | |||
With no impairment reserve recorded | 25 | 22 | 181 |
With impairment reserve recorded | 0 | 4 | 6 |
Total | 25 | 26 | 187 |
Construction and land development | |||
Recorded investment | |||
With no impairment reserve recorded | 4,533 | 5,157 | 5,489 |
With impairment reserve recorded | 397 | 0 | 0 |
Total | 4,930 | 5,157 | 5,489 |
Unpaid principal balance | |||
With no impairment reserve recorded | 7,203 | 7,828 | 8,160 |
With impairment reserve recorded | 397 | 0 | 0 |
Total | 7,600 | 7,828 | 8,160 |
Impairment reserve | |||
Impairment reserve | 48 | 0 | 0 |
Average recorded investment | |||
With no impairment reserve recorded | 4,807 | 5,285 | 5,777 |
With impairment reserve recorded | 34 | 0 | 0 |
Total | 4,841 | 5,285 | 5,777 |
Foregone interest income | |||
With no impairment reserve recorded | 133 | 155 | 203 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 133 | 155 | 203 |
Interest income recognized | |||
With no impairment reserve recorded | 0 | 0 | 3 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 0 | 0 | 3 |
Net foregone interest income | |||
With no impairment reserve recorded | 133 | 155 | 200 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 133 | 155 | 200 |
Multi-family | |||
Recorded investment | |||
With no impairment reserve recorded | 2 | 17 | 31 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 2 | 17 | 31 |
Unpaid principal balance | |||
With no impairment reserve recorded | 369 | 384 | 398 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 369 | 384 | 398 |
Impairment reserve | |||
Impairment reserve | 0 | 0 | 0 |
Average recorded investment | |||
With no impairment reserve recorded | 10 | 24 | 366 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 10 | 24 | 366 |
Foregone interest income | |||
With no impairment reserve recorded | 27 | 53 | 93 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 27 | 53 | 93 |
Interest income recognized | |||
With no impairment reserve recorded | 0 | 0 | 0 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Net foregone interest income | |||
With no impairment reserve recorded | 27 | 53 | 93 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 27 | 53 | 93 |
1-4 family (1) | |||
Recorded investment | |||
With no impairment reserve recorded | 2,423 | 1,181 | 244 |
With impairment reserve recorded | 945 | 390 | 422 |
Total | 3,368 | 1,571 | 666 |
Unpaid principal balance | |||
With no impairment reserve recorded | 2,486 | 1,218 | 244 |
With impairment reserve recorded | 950 | 390 | 422 |
Total | 3,436 | 1,608 | 666 |
Impairment reserve | |||
Impairment reserve | 173 | 155 | 155 |
Average recorded investment | |||
With no impairment reserve recorded | 1,604 | 380 | 405 |
With impairment reserve recorded | 605 | 405 | 437 |
Total | 2,209 | 785 | 842 |
Foregone interest income | |||
With no impairment reserve recorded | 82 | 15 | 31 |
With impairment reserve recorded | 34 | 18 | 18 |
Total | 116 | 33 | 49 |
Interest income recognized | |||
With no impairment reserve recorded | 4 | 12 | 34 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 4 | 12 | 34 |
Net foregone interest income | |||
With no impairment reserve recorded | 78 | 3 | (3) |
With impairment reserve recorded | 34 | 18 | 18 |
Total | 112 | 21 | 15 |
Commercial & industrial (2) | |||
Recorded investment | |||
With no impairment reserve recorded | 2,546 | 2,316 | 555 |
With impairment reserve recorded | 6,603 | 33 | 7,488 |
Total | 9,149 | 2,349 | 8,043 |
Unpaid principal balance | |||
With no impairment reserve recorded | 2,590 | 2,926 | 766 |
With impairment reserve recorded | 6,603 | 33 | 7,488 |
Total | 9,193 | 2,959 | 8,254 |
Impairment reserve | |||
Impairment reserve | 847 | 33 | 131 |
Average recorded investment | |||
With no impairment reserve recorded | 544 | 6,141 | 434 |
With impairment reserve recorded | 810 | 34 | 670 |
Total | 1,354 | 6,175 | 1,104 |
Foregone interest income | |||
With no impairment reserve recorded | 172 | 463 | 97 |
With impairment reserve recorded | 102 | 0 | 42 |
Total | 274 | 463 | 139 |
Interest income recognized | |||
With no impairment reserve recorded | 6 | 649 | 114 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 6 | 649 | 114 |
Net foregone interest income | |||
With no impairment reserve recorded | 166 | (186) | (17) |
With impairment reserve recorded | 102 | 0 | 42 |
Total | 268 | (186) | 25 |
Direct financing leases, net | |||
Recorded investment | |||
With no impairment reserve recorded | 38 | 0 | 0 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 38 | 0 | 0 |
Unpaid principal balance | |||
With no impairment reserve recorded | 38 | 0 | 0 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 38 | 0 | 0 |
Impairment reserve | |||
Impairment reserve | 0 | 0 | 0 |
Average recorded investment | |||
With no impairment reserve recorded | 4 | 0 | 6 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 4 | 0 | 6 |
Foregone interest income | |||
With no impairment reserve recorded | 0 | 0 | 0 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Interest income recognized | |||
With no impairment reserve recorded | 0 | 0 | 0 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Net foregone interest income | |||
With no impairment reserve recorded | 0 | 0 | 0 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Home equity and second mortgages | |||
Recorded investment | |||
With no impairment reserve recorded | 500 | 380 | 518 |
With impairment reserve recorded | 99 | 53 | 62 |
Total | 599 | 433 | 580 |
Unpaid principal balance | |||
With no impairment reserve recorded | 500 | 380 | 518 |
With impairment reserve recorded | 99 | 53 | 62 |
Total | 599 | 433 | 580 |
Impairment reserve | |||
Impairment reserve | 25 | 53 | 62 |
Average recorded investment | |||
With no impairment reserve recorded | 390 | 495 | 593 |
With impairment reserve recorded | 58 | 57 | 65 |
Total | 448 | 552 | 658 |
Foregone interest income | |||
With no impairment reserve recorded | 23 | 18 | 37 |
With impairment reserve recorded | 10 | 5 | 5 |
Total | 33 | 23 | 42 |
Interest income recognized | |||
With no impairment reserve recorded | 63 | 0 | 3 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 63 | 0 | 3 |
Net foregone interest income | |||
With no impairment reserve recorded | (40) | 18 | 34 |
With impairment reserve recorded | 10 | 5 | 5 |
Total | (30) | 23 | 39 |
Other | |||
Recorded investment | |||
With no impairment reserve recorded | 655 | 721 | 795 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 655 | 721 | 795 |
Unpaid principal balance | |||
With no impairment reserve recorded | 1,321 | 1,389 | 1,461 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 1,321 | 1,389 | 1,461 |
Impairment reserve | |||
Impairment reserve | 0 | 0 | 0 |
Average recorded investment | |||
With no impairment reserve recorded | 688 | 768 | 942 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 688 | 768 | 942 |
Foregone interest income | |||
With no impairment reserve recorded | 82 | 87 | 100 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 82 | 87 | 100 |
Interest income recognized | |||
With no impairment reserve recorded | 0 | 0 | 0 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Net foregone interest income | |||
With no impairment reserve recorded | 82 | 87 | 100 |
With impairment reserve recorded | 0 | 0 | 0 |
Total | $ 82 | $ 87 | $ 100 |
Loan and Lease Receivables, I73
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Allowance for Loan and Lease Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for credit losses: | ||||||
Beginning balance | $ 14,329 | $ 13,901 | $ 15,400 | |||
Charge-offs | (1,513) | (1,233) | (914) | |||
Recoveries | 114 | 425 | 374 | |||
Provision | 3,386 | 1,236 | (959) | |||
Ending balance | 14,329 | 13,901 | 15,400 | $ 16,316 | $ 14,329 | $ 13,901 |
Ending balance: individually evaluated for impairment | 1,113 | 290 | 402 | |||
Ending balance: collectively evaluated for impairment | 15,203 | 13,947 | 13,499 | |||
Loans and lease receivables: | ||||||
Total gross loans and leases receivable | 1,434,729 | 1,281,792 | 981,972 | |||
Ending balance: individually evaluated for impairment | 20,852 | 7,700 | 14,797 | |||
Ending balance: collectively evaluated for impairment | $ 1,410,696 | $ 1,269,997 | $ 965,746 | |||
Allowance as % of gross loans and leases | 1.14% | 1.12% | 1.42% | |||
Commercial real estate | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 8,619 | 9,055 | 10,693 | |||
Charge-offs | (793) | (631) | (896) | |||
Recoveries | 104 | 44 | 353 | |||
Provision | 3,290 | 151 | (1,095) | |||
Ending balance | 8,619 | 9,055 | 10,693 | $ 11,220 | $ 8,619 | $ 9,055 |
Ending balance: individually evaluated for impairment | 240 | 204 | 209 | |||
Ending balance: collectively evaluated for impairment | 10,980 | 8,414 | 8,846 | |||
Loans and lease receivables: | ||||||
Total gross loans and leases receivable | 905,488 | 811,766 | 645,111 | |||
Ending balance: individually evaluated for impairment | 10,849 | 4,877 | 5,379 | |||
Ending balance: collectively evaluated for impairment | $ 891,897 | $ 803,475 | $ 638,303 | |||
Allowance as % of gross loans and leases | 1.24% | 1.06% | 1.40% | |||
Commercial and Industrial Loans and Leases Receivable [Member] | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 5,492 | 4,573 | 4,336 | |||
Charge-offs | (711) | (600) | (14) | |||
Recoveries | 6 | 369 | 16 | |||
Provision | (400) | 1,150 | 235 | |||
Ending balance | 5,492 | 4,573 | 4,336 | $ 4,387 | $ 5,492 | $ 4,573 |
Ending balance: individually evaluated for impairment | 847 | 33 | 131 | |||
Ending balance: collectively evaluated for impairment | 3,540 | 5,368 | 4,442 | |||
Loans and lease receivables: | ||||||
Total gross loans and leases receivable | 504,685 | 450,819 | 319,617 | |||
Ending balance: individually evaluated for impairment | 8,942 | 1,669 | 8,043 | |||
Ending balance: collectively evaluated for impairment | $ 495,497 | $ 448,469 | $ 311,574 | |||
Allowance as % of gross loans and leases | 0.87% | 1.22% | 1.43% | |||
Consumer and other | ||||||
Allowance for credit losses: | ||||||
Beginning balance | 218 | 273 | 371 | |||
Charge-offs | (9) | (2) | (4) | |||
Recoveries | 4 | 12 | 5 | |||
Provision | 496 | (65) | (99) | |||
Ending balance | $ 218 | $ 273 | $ 371 | $ 709 | $ 218 | $ 273 |
Ending balance: individually evaluated for impairment | 26 | 53 | 62 | |||
Ending balance: collectively evaluated for impairment | 683 | 165 | 211 | |||
Loans and lease receivables: | ||||||
Total gross loans and leases receivable | 24,556 | 19,207 | 17,244 | |||
Ending balance: individually evaluated for impairment | 1,061 | 1,154 | 1,375 | |||
Ending balance: collectively evaluated for impairment | $ 23,302 | $ 18,053 | $ 15,869 | |||
Allowance as % of gross loans and leases | 2.89% | 1.14% | 1.58% | |||
Direct financing leases, net | ||||||
Loans and lease receivables: | ||||||
Total gross loans and leases receivable | $ 31,093 | $ 34,165 | ||||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for credit losses: | ||||||
Ending balance: individually evaluated for impairment | 0 | 92 | $ 0 | |||
Loans and lease receivables: | ||||||
Ending balance: individually evaluated for impairment | 3,181 | 4,095 | 1,429 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial real estate | ||||||
Allowance for credit losses: | ||||||
Ending balance: individually evaluated for impairment | 0 | 1 | 0 | |||
Loans and lease receivables: | ||||||
Ending balance: individually evaluated for impairment | 2,742 | 3,414 | 1,429 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial and Industrial Loans and Leases Receivable [Member] | ||||||
Allowance for credit losses: | ||||||
Ending balance: individually evaluated for impairment | 0 | 91 | 0 | |||
Loans and lease receivables: | ||||||
Ending balance: individually evaluated for impairment | 246 | 681 | 0 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | Consumer and other | ||||||
Allowance for credit losses: | ||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | |||
Loans and lease receivables: | ||||||
Ending balance: individually evaluated for impairment | $ 193 | $ 0 | $ 0 |
Loan and Lease Receivables, I74
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses Net Investment In Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Minimum lease payments receivable | $ 27,361 | $ 31,204 |
Estimated unguaranteed residual values in leased property | 7,036 | 7,053 |
Initial direct costs | 158 | 208 |
Unearned lease and residual income | (3,462) | (4,300) |
Investment in commercial direct financing leases | $ 31,093 | $ 34,165 |
Loan and Lease Receivables, I75
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses Future Minimum Lease Payments To Be Received (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Direct Financing Leases, Future Minimum Payments Receivable By Year [Abstract] | |
2,014 | $ 7,584 |
2,015 | 6,636 |
2,016 | 6,334 |
2,017 | 3,787 |
2,018 | 2,533 |
Thereafter | 487 |
Total | $ 27,361 |
Loan and Lease Receivables, I76
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Narrative Disclosures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases transferred to third parties total principal amount | $ 128,200,000 | $ 29,100,000 | |
Total loans and leases transferred to third parties that qualify for sale accounting | 128,200,000 | 29,100,000 | |
Gain on sale of SBA loans | 3,999,000 | 318,000 | $ 0 |
Loan participations purchased on the Corporation's balance sheet | 467,000 | 482,000 | |
Total amount of outstanding loans transferred to third parties as loan participations | 169,200,000 | 116,600,000 | |
Total amount of loan participations remaining on the Corporation's balance sheet | 136,800,000 | 96,400,000 | |
Loans in the participation sold portfolio, considered impaired | 1,800,000 | 1,200,000 | |
Residential Real Estate Loans Sold, Principal Amount | 32,600,000 | 4,900,000 | |
Loans to executive officers, directors and their related interests | 6,900,000 | 4,400,000 | |
New loans granted to executive officers, directors and their related interests | 3,900,000 | 1,800,000 | |
Repayments on loans to executive officers, directors and their related interests | 1,400,000 | 392,000 | |
Loans and leases receivable, related parties, impaired | 0 | ||
Total gross loans and leases receivable | 1,434,729,000 | 1,281,792,000 | 981,972,000 |
Non-accrual troubled debt restructurings | 16,200,000 | 7,400,000 | |
Unfunded commitments, troubled debt restructurings | 0 | ||
Loans and leases receivable, difference between recorded investment and unpaid principal balance | 3,900,000 | 4,400,000 | 4,000,000 |
Performing troubled debt restructurings | 1,735,000 | 2,003,000 | 371,000 |
Impairments of residual value of leased property | 0 | 0 | $ 0 |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans and leases receivable | 26,800,000 | 27,100,000 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans and leases receivable | 0 | ||
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans and leases receivable | 0 | 0 | |
Loss | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total gross loans and leases receivable | $ 0 | $ 0 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 650 | $ 650 |
Building and leasehold improvements | 2,879 | 2,776 |
Furniture and equipment | 4,893 | 4,339 |
Construction and purchases in progress | 28 | 52 |
Total leasehold improvements and equipment, gross | 8,450 | 7,817 |
Less: accumulated depreciation | (4,496) | (3,874) |
Total premises and equipment, net | $ 3,954 | $ 3,943 |
Premises and Equipment Premises
Premises and Equipment Premises and Equipment (Narrative Disclosures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 746,000 | $ 385,000 | $ 313,000 |
Goodwill and Intangible Asset79
Goodwill and Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets | |||
net book value | $ 264 | ||
Core Deposits | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 347 | $ 347 | $ 0 |
Less: accumulated amortization | (83) | (12) | 0 |
net book value | 264 | 335 | 0 |
Amortization during the period | $ (71) | $ (12) | $ 0 |
Goodwill and Intangible Asset80
Goodwill and Intangible Assets (Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2,016 | $ 62 |
2,017 | 54 |
2,018 | 47 |
2,019 | 40 |
2,020 | 35 |
Thereafter | 26 |
net book value | $ 264 |
Goodwill and Intangible Asset81
Goodwill and Intangible Assets (Narrative Disclosures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 10,700,000 | $ 10,700,000 | $ 0 |
Goodwill impairment charges | 0 | 0 | |
Loan servicing asset | 1,563,000 | 943,000 | $ 0 |
Loan servicing asset amortization | $ 197,000 | $ 24,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accrued interest receivable | $ 4,412 | $ 3,932 |
Deferred tax assets, net | 2,633 | 3,603 |
Investment in limited partnerships | 3,215 | 3,193 |
Investment in Community Development Entities | 7,500 | 7,500 |
Investment in Historic Development Entities | 578 | 0 |
Investment in Trust II | 315 | 315 |
Fair value of interest rate swaps | 552 | 575 |
Prepaid expenses | 2,175 | 2,217 |
Other | 3,502 | 4,882 |
Total accrued interest receivable and other assets | $ 24,882 | $ 26,217 |
Other Assets Investments in Lim
Other Assets Investments in Limited Partnerships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Share of the partnerships’ income | $ 481 | $ 774 | $ (437) |
Investment in limited partnerships | 3,215 | 3,193 | |
Investment in Historic Development Entities | 578 | 0 | |
Aldine Capital Fund, LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in limited partnerships | 1,000 | 1,100 | |
Remaining commitment to provide funds to Aldine Capital Fund, LP | 960 | ||
Aldine Capital Fund II, LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in limited partnerships | 2,173 | $ 2,051 | |
Remaining commitment to provide funds to Aldine Capital Fund, LP | $ 2,800 |
Other Assets Narrative (Details
Other Assets Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 26, 2008 | |
Variable Interest Entity [Line Items] | ||||
Income (Loss) from Equity Method Investments | $ 481 | $ 774 | $ (437) | |
Investment in limited partnerships | 3,215 | 3,193 | ||
Investment in Community Development Entities | 7,500 | 7,500 | ||
Sole ownership of common securities issued by Trust II | 315 | |||
Trust preferred securities | $ 10,000 | 10,000 | ||
Investment in CDE Tax Credit, Description, Terms on New Market Tax Credit | The investment provides federal new market tax credits over a seven-year credit allowance period. In each of the first three years, credits totaling five percent of the original investment are allowed on the credit allowance dates and for the final four years, credits totaling six percent of the original investment are allowed on the credit allowance dates. Rimrock must be invested in the qualified CDE on each of the credit allowance dates during the seven-year period to utilize the tax credits. If the CDE ceases to qualify during the seven-year period, the credits may be denied for any credit allowance date and a portion of the credits previously taken may be subject to recapture with interest. The investment in the CDE cannot be redeemed before the end of the seven-year period. | |||
Investment in Trust II | $ 315 | 315 | ||
Trust II | ||||
Variable Interest Entity [Line Items] | ||||
Trust preferred securities | $ 10,000 | |||
Fixed rate | 10.50% | |||
Aldine Capital Fund, LP | ||||
Variable Interest Entity [Line Items] | ||||
Investment in limited partnerships | 1,000 | 1,100 | ||
Remaining commitment to provide funds to Limited Partnerships | 960 | |||
Aldine Capital Fund II, LP | ||||
Variable Interest Entity [Line Items] | ||||
Investment in limited partnerships | 2,173 | $ 2,051 | ||
Remaining commitment to provide funds to Limited Partnerships | $ 2,800 |
Other Assets Other Assets Tax C
Other Assets Other Assets Tax Credit Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Carryforward [Line Items] | |||
Maximum Aggregate Capital Contributions, Historic Development Entities | $ 3,500,000 | ||
Federal New Market Tax Credit [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax Credit Carryforward, Amount | 2,200,000 | ||
Federal Tax Credits Used to Offset Income | 375,000 | $ 400,000 | $ 0 |
Federal Historic Tax Credit [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Federal Tax Credits Used to Offset Income | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deposit [Line Items] | ||
Deposits | $ 1,577,231 | $ 1,438,268 |
Average Balance, Deposits | $ 1,496,982 | $ 1,208,003 |
Deposits, weighted average interest rate during the period | 0.73% | 0.78% |
Non-interest-bearing transaction accounts | ||
Deposit [Line Items] | ||
Deposits | $ 231,199 | $ 204,328 |
Average Balance, Deposits | $ 211,945 | $ 154,687 |
Deposits, weighted average interest rate during the period | 0.00% | 0.00% |
Interest-bearing transaction accounts | ||
Deposit [Line Items] | ||
Deposits | $ 165,921 | $ 104,199 |
Average Balance, Deposits | $ 125,558 | $ 83,508 |
Deposits, weighted average interest rate during the period | 0.24% | 0.22% |
Money market accounts | ||
Deposit [Line Items] | ||
Deposits | $ 612,642 | $ 575,766 |
Average Balance, Deposits | $ 602,842 | $ 493,322 |
Deposits, weighted average interest rate during the period | 0.55% | 0.52% |
Certificates of deposit | ||
Deposit [Line Items] | ||
Deposits | $ 79,986 | $ 126,635 |
Average Balance, Deposits | $ 106,177 | $ 60,284 |
Deposits, weighted average interest rate during the period | 0.78% | 0.89% |
Wholesale deposits | ||
Deposit [Line Items] | ||
Deposits | $ 487,483 | $ 427,340 |
Average Balance, Deposits | $ 450,460 | $ 416,202 |
Deposits, weighted average interest rate during the period | 1.43% | 1.49% |
Deposits Time deposits by matur
Deposits Time deposits by maturity (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2,016 | $ 190,305 |
2,017 | 103,109 |
2,018 | 87,074 |
2,019 | 66,751 |
2,020 | 80,606 |
Thereafter | 39,624 |
Total | $ 567,469 |
Deposits Deposits Narrative (De
Deposits Deposits Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Time Deposits, $250,000 or More | $ 11.5 | $ 22.6 |
FHLB Advances, Other Borrowin89
FHLB Advances, Other Borrowings and Junior Subordinated Notes (Composition of Borrowed Funds) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 45,541 | $ 44,309 |
Borrowed Funds, Average Balance | $ 50,554 | $ 29,020 |
Borrowed funds, interest rate during period | 5.84% | 7.24% |
Long-term borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 38,531 | $ 42,299 |
Short-term borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | 7,010 | 2,010 |
Federal funds purchased | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | 0 | 0 |
Borrowed Funds, Average Balance | $ 237 | $ 237 |
Borrowed funds, interest rate during period | 0.86% | 0.82% |
FHLB advances and other borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 9,790 | $ 10,058 |
Borrowed Funds, Average Balance | $ 15,457 | $ 5,093 |
Borrowed funds, interest rate during period | 1.14% | 0.56% |
Line of credit | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 2,510 | $ 1,010 |
Borrowed Funds, Average Balance | $ 1,619 | $ 13 |
Borrowed funds, interest rate during period | 3.18% | 3.30% |
Subordinated notes payable | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 22,926 | $ 22,926 |
Borrowed Funds, Average Balance | $ 22,926 | $ 13,362 |
Borrowed funds, interest rate during period | 6.98% | 7.07% |
Junior subordinated notes | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 10,315 | $ 10,315 |
Borrowed Funds, Average Balance | $ 10,315 | $ 10,315 |
Borrowed funds, interest rate during period | 10.78% | 10.78% |
FHLB Advances, Other Borrowin90
FHLB Advances, Other Borrowings and Junior Subordinated Notes FHLB Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Borrowed funds | $ 45,541 | $ 44,309 |
Loans pledged as collateral for Federal Home Loan Bank advances and unused available credit | 75,000 | 85,800 |
Collateralized mortgage obligations pledged as collateral for Federal Home Loan Bank advances and unused available credit | 21,700 | 30,700 |
FHLB advances and other borrowings | ||
Line of Credit Facility [Line Items] | ||
Federal Home Loan Bank line of credit maximum available | 78,100 | |
Federal Home Loan Bank unused line remaining | 70,100 | |
Line of credit, amount outstanding | 0 | 0 |
FHLB advances and other borrowings | ||
Line of Credit Facility [Line Items] | ||
Borrowed funds | $ 8,200 | $ 9,383 |
FHLB advances and other borrowings | Minimum | ||
Line of Credit Facility [Line Items] | ||
Fixed rate | 0.89% | 0.71% |
FHLB advances and other borrowings | Maximum | ||
Line of Credit Facility [Line Items] | ||
Fixed rate | 4.96% | 4.96% |
FHLB Advances, Other Borrowin91
FHLB Advances, Other Borrowings and Junior Subordinated Notes Line of credit type (Details) - USD ($) | Feb. 19, 2015 | Dec. 31, 2014 | Feb. 19, 2014 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | ||||
Debt and Capital Lease Obligations | $ 44,309,000 | $ 45,541,000 | ||
Line of credit | ||||
Line of Credit Facility [Line Items] | ||||
Debt and Capital Lease Obligations | $ 1,010,000 | 2,510,000 | ||
Line of credit | ||||
Line of Credit Facility [Line Items] | ||||
Senior line of credit with a third-party financial institution | 10,500,000 | |||
Line of credit - unused line fee | $ 13,000 | |||
London Interbank Offered Rate (LIBOR) | Line of credit | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.75% | 2.75% | ||
Interest rate floor | 3.13% | |||
Interest rate floor debt | Line of credit | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate floor | 3.13% |
FHLB Advances, Other Borrowin92
FHLB Advances, Other Borrowings and Junior Subordinated Notes Subordinated notes payable and junior subordinated notes payable (Details) - USD ($) $ in Thousands | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Aug. 26, 2014 |
Subordinated Borrowing [Line Items] | ||||||
Borrowed funds | $ 44,309 | $ 45,541 | $ 44,309 | |||
Repayment of subordinated notes payable | 0 | 4,000 | $ 0 | |||
Junior subordinated notes | 10,315 | 10,315 | 10,315 | |||
Debt issuance cost | $ 428 | |||||
Debt issuance costs, unamortized | 324 | |||||
Subordinated Debt | ||||||
Subordinated Borrowing [Line Items] | ||||||
Fixed rate | 6.50% | |||||
Subordinated debt - third party financial institution | ||||||
Subordinated Borrowing [Line Items] | ||||||
Subordinated notes payable | 1,700 | |||||
Subordinated debt - private placement | ||||||
Subordinated Borrowing [Line Items] | ||||||
Subordinated notes payable | 6,200 | |||||
Junior subordinated notes | ||||||
Subordinated Borrowing [Line Items] | ||||||
Junior subordinated notes | $ 10,315 | |||||
Fixed rate | 10.50% | |||||
Subordinated debt - private placement | ||||||
Subordinated Borrowing [Line Items] | ||||||
Subordinated debt, fixed interest rate | 7.50% | |||||
Subordinated Debt | ||||||
Subordinated Borrowing [Line Items] | ||||||
Borrowed funds | $ 22,926 | $ 22,926 | $ 22,926 | |||
London Interbank Offered Rate (LIBOR) | Subordinated debt - third party financial institution | ||||||
Subordinated Borrowing [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 4.75% | |||||
Interest rate floor debt | Subordinated debt - third party financial institution | ||||||
Subordinated Borrowing [Line Items] | ||||||
Interest rate floor | 6.00% | |||||
Aslin Group, Inc. | Subordinated Debt - Issued to fund mergers | ||||||
Subordinated Borrowing [Line Items] | ||||||
Subordinated notes payable | $ 15,000 |
FHLB Advances, Other Borrowin93
FHLB Advances, Other Borrowings and Junior Subordinated Notes Trust II Issuance Of Trust Preferred Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 26, 2008 |
Variable Interest Entity [Line Items] | |||
Trust preferred securities | $ 10,000 | $ 10,000 | |
Sole ownership of common securities issued by Trust II | $ 315 | ||
Trust II | |||
Variable Interest Entity [Line Items] | |||
Trust preferred securities | $ 10,000 | ||
Trust preferred securities fixed rate | 10.50% |
FHLB Advances, Other Borrowin94
FHLB Advances, Other Borrowings and Junior Subordinated Notes (Narrative Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | |||
Securities sold under agreements to repurchase | $ 0 | ||
Federal funds purchased | 0 | ||
Proceeds from issuance of common stock | $ 0 | $ 16,557 | $ 0 |
Stockholders' Equity and Regu95
Stockholders' Equity and Regulatory Capital (Regulatory Capital Ratios) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total Capital | $ 189,163 | $ 173,263 |
Total Capital to Risk-Weighted Assets | 11.11% | 12.13% |
Total Capital, Minimum Required for Capital Adequacy Purposes | $ 136,208 | $ 114,253 |
Total Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Tier 1 capital | $ 149,920 | $ 136,008 |
Tier 1 Capital to Risk-Weighted Assets | 8.81% | 9.52% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | $ 102,156 | $ 57,127 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 4.00% |
Common Equity Tier One Capital | $ 139,920 | |
Common Equity Tier One Capital to Risk-Weighted Assets | 8.22% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 76,617 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk-Weighted Assets | 4.50% | |
Tier 1 Capital | $ 149,920 | $ 136,008 |
Tier 1 Capital to Average Assets | 8.63% | 8.71% |
Tier 1 Leverage Capital, Minimum Required for Capital Adequacy Purposes | $ 69,466 | $ 62,490 |
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 | $ 141,388 | $ 131,411 |
Total Capital to Risk-Weighted Assets | 11.12% | 12.19% |
Total Capital, Minimum Required for Capital Adequacy Purposes | $ 101,754 | $ 86,272 |
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 | $ 127,193 | $ 107,841 |
Total Capital to Risk-Weighted Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 capital | $ 128,852 | $ 118,907 |
Tier 1 Capital to Risk-Weighted Assets | 10.13% | 11.03% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | $ 76,316 | $ 43,136 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 4.00% |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 101,754 | $ 64,704 |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 8.00% | 6.00% |
Common Equity Tier One Capital | $ 128,852 | |
Common Equity Tier One Capital to Risk-Weighted Assets | 10.13% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 57,237 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk-Weighted Assets | 4.50% | |
Common Equity Tier One Capital to be Well Capitalized | $ 110,669 | |
Common Equity Tier One Capital Required to be Well Capitalized to Risk-Weighted Assets | 6.50% | |
Tier 1 Capital | $ 128,852 | $ 118,907 |
Tier 1 Capital to Average Assets | 10.44% | 10.13% |
Tier 1 Leverage Capital, Minimum Required for Capital Adequacy Purposes | $ 49,359 | $ 46,960 |
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 | $ 61,698 | $ 58,700 |
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 | $ 20,931 | $ 19,128 |
Total Capital to Risk-Weighted Assets | 12.03% | 12.47% |
Total Capital, Minimum Required for Capital Adequacy Purposes | $ 13,914 | $ 12,274 |
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 | $ 17,392 | $ 15,343 |
Total Capital to Risk-Weighted Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 capital | $ 19,172 | $ 17,641 |
Tier 1 Capital to Risk-Weighted Assets | 11.02% | 11.50% |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | $ 10,435 | $ 6,137 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 4.00% |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 13,914 | $ 9,206 |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 8.00% | 6.00% |
Common Equity Tier One Capital | $ 19,172 | |
Common Equity Tier One Capital to Risk-Weighted Assets | 11.02% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 7,826 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk-Weighted Assets | 4.50% | |
Common Equity Tier One Capital to be Well Capitalized | $ 82,675 | |
Common Equity Tier One Capital Required to be Well Capitalized to Risk-Weighted Assets | 6.50% | |
Tier 1 Capital | $ 19,172 | $ 17,641 |
Tier 1 Capital to Average Assets | 7.81% | 7.90% |
Tier 1 Leverage Capital, Minimum Required for Capital Adequacy Purposes | $ 9,821 | $ 8,935 |
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 | $ 12,276 | $ 11,169 |
Tier 1 Leverage Capital to Average Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 5.00% | 5.00% |
Alterra Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total Capital | $ 30,300 | |
Total Capital to Risk-Weighted Assets | 11.39% | |
Total Capital, Minimum Required for Capital Adequacy Purposes | $ 21,279 | |
Total Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 8.00% | |
Total Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 26,598 | |
Total Capital to Risk-Weighted Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | |
Tier 1 capital | $ 28,278 | |
Tier 1 Capital to Risk-Weighted Assets | 10.63% | |
Tier 1 Capital, Minimum Required for Capital Adequacy Purposes | $ 15,959 | |
Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes | 6.00% | |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 21,279 | |
Tier 1 Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 8.00% | |
Common Equity Tier One Capital | $ 28,278 | |
Common Equity Tier One Capital to Risk-Weighted Assets | 10.63% | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 11,969 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk-Weighted Assets | 4.50% | |
Common Equity Tier One Capital to be Well Capitalized | $ 11,305 | |
Common Equity Tier One Capital Required to be Well Capitalized to Risk-Weighted Assets | 6.50% | |
Tier 1 Capital | $ 28,278 | |
Tier 1 Capital to Average Assets | 9.89% | |
Tier 1 Leverage Capital, Minimum Required for Capital Adequacy Purposes | $ 11,441 | |
Tier 1 Leverage Capital to Average Assets, Minimum Required for Capital Adequacy Purposes | 4.00% | |
Tier 1 Leverage Capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 14,301 | |
Tier 1 Leverage Capital to Average Assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 5.00% |
Stockholders' Equity and Regu96
Stockholders' Equity and Regulatory Capital Reconciliation of stockholders' equity to federal regulatory capital (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Regulatory Capital Requirements [Abstract] | ||||
Stockholders’ equity of the Corporation | $ 150,832 | $ 137,748 | $ 109,275 | $ 99,539 |
Unrealized and accumulated (gains) losses on specific items | 80 | (652) | ||
Disallowed Servicing Assets and Purchased Credit Card Relationships | (370) | (94) | ||
Disallowed Goodwill and Intangibles | (10,622) | (10,994) | ||
Trust preferred securities | 10,000 | 10,000 | ||
Tier 1 capital | 149,920 | 136,008 | ||
Allowable general valuation allowances and subordinated debt | 39,243 | 37,255 | ||
Risk-based capital | $ 189,163 | $ 173,263 |
Stockholders' Equity and Regu97
Stockholders' Equity and Regulatory Capital (Narrative Disclosures) (Details) | Jul. 15, 2008right | Jun. 05, 2008right | Dec. 31, 2015$ / shares$ / right | Dec. 31, 2014$ / shares |
Regulatory Capital Requirements [Abstract] | ||||
Dividend declared of one common share purchase right for each outstanding share of common stock | right | 1 | |||
Dividend paid of one common share purchase right for each outstanding share of common stock | right | 1 | |||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||
Class of right, exercise price of rights | $ / shares | $ 42.50 | |||
Class of right, exercise price for each one-half of a common share | $ / right | 21.25 | |||
Rights will be exercisable only if a person or group acquires fifteen percent or more of the corporation’s common stock or announces a tender offer for such stock | 15.00% | |||
Value of additional shares acquired under the shareholder rights plan, common stock, market value multiplier of market value of common stock | 2 | |||
Description of possible effects of noncompliance or less than adequately capitalized | Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Banks’ assets, liabilities and certain off-balance-sheet items as calculated under regulatory practices. |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic earnings per common share | |||||||||||
Net income | $ 4,083 | $ 4,381 | $ 3,858 | $ 4,192 | $ 3,744 | $ 3,553 | $ 3,505 | $ 3,337 | $ 16,514 | $ 14,139 | $ 13,746 |
less: earnings allocated to participating securities | 273 | 294 | 331 | ||||||||
Earnings allocated to common shareholders | $ 16,241 | $ 13,845 | $ 13,415 | ||||||||
Weighted-average common shares outstanding, excluding participating securities | 8,549,176 | 7,869,956 | 7,664,620 | ||||||||
Basic earnings per common share | $ 0.47 | $ 0.50 | $ 0.45 | $ 0.48 | $ 0.44 | $ 0.45 | $ 0.44 | $ 0.43 | $ 1.90 | $ 1.76 | $ 1.75 |
Diluted earnings per common share | |||||||||||
Earnings allocated to common shareholders | $ 16,241 | $ 13,845 | $ 13,415 | ||||||||
Reallocation of undistributed earnings | 0 | 1 | 2 | ||||||||
Diluted earnings allocated to common shareholders | $ 16,241 | $ 13,846 | $ 13,417 | ||||||||
Weighted-average common shares outstanding, excluding participating securities | 8,549,176 | 7,869,956 | 7,664,620 | ||||||||
Dilutive effect of share-based awards | 1,146 | 36,811 | 30,168 | ||||||||
Weighted-average diluted common shares outstanding, excluding participating securities | 8,550,322 | 7,906,767 | 7,694,788 | ||||||||
Diluted earnings per common share | $ 0.47 | $ 0.50 | $ 0.45 | $ 0.48 | $ 0.44 | $ 0.45 | $ 0.44 | $ 0.42 | $ 1.90 | $ 1.75 | $ 1.74 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative Disclosures) (Details) - shares | Nov. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition | |||
Average anti-dilutive employee share based awards | 0 | 4 | |
Aslin Group, Inc. | |||
Business Acquisition | |||
Shares issued in business acquisition | 720,162 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options | |||
Outstanding, beginning | 24,000 | 102,000 | 248,068 |
Granted | 0 | 0 | 0 |
Exercised | (24,000) | (78,000) | (139,368) |
Expired | 0 | 0 | (6,700) |
Forfeited | 0 | 0 | 0 |
Outstanding, ending balance | 0 | 24,000 | 102,000 |
Exercisable | 0 | 24,000 | 102,000 |
Weighted Average Exercise Price | |||
Outstanding, beginning | $ 12.50 | $ 12.12 | $ 11.22 |
Granted | 0 | 0 | 0 |
Exercised | 12.50 | 12 | 10.57 |
Expired | 0 | 0 | 11 |
Forfeited | 0 | 0 | 0 |
Outstanding, ending | 0 | 12.50 | 12.12 |
Exercisable | $ 0 | $ 12.50 | $ 12.12 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Share Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Restricted Shares | |||
Nonvested balance, beginning | 154,998 | 169,418 | 189,012 |
Granted | 53,790 | 64,522 | 50,060 |
Vested | (64,874) | (78,942) | (69,654) |
Forfeited | (8,443) | 0 | 0 |
Nonvested balance, ending | 135,471 | 154,998 | 169,418 |
Weighted Average Grant-Date Fair Value | |||
Nonvested balance, beginning | $ 16.97 | $ 11.55 | $ 9.10 |
Granted | 22.52 | 22.49 | 16.50 |
Vested | 15.23 | 9.86 | 8.44 |
Forfeited | 15.03 | 0 | 0 |
Nonvested balance, ending | $ 20.13 | $ 16.97 | $ 11.55 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation | $ 1,063 | $ 887 | $ 660 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares available for grant | 311,445 | ||
Stock options graded vesting minimum period | 4 years | ||
Stock options graded vesting maximum period | 8 years | ||
Stock options contractual term | 10 years | ||
Stock-based compensation related to stock options recognized in consolidated financial statements | $ 0 | $ 0 | $ 0 |
Deferred compensation expense yet to be recognized | $ 2,300 | ||
Period of time that deferred compensation expense will be recognized | 2 years 9 months 11 days |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined contribution maximum annual matching contribution per employee, percent | 3.00% | ||
Defined contribution maximum annual discretionary contribution per employee, percent | 6.00% | ||
Defined contribution plan, employer matching contribution, percent | 3.00% | ||
Defined contribution plan employer matching contribution | $ 573 | $ 398 | $ 348 |
Defined contribution plan employer discretionary contribution percent | 3.30% | 4.70% | 4.60% |
Defined contribution plan, employer discretionary contribution amount | $ 549 | $ 632 | $ 533 |
Deferred compensation plan compensation expense | 116 | 101 | $ 81 |
Present value of future payments under the remaining deferred compensation plan liability | $ 863 | $ 747 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Bank owned life insurance [Line Items] | ||
Cash surrender value of bank-owned life insurance | $ 28,298 | $ 27,314 |
Bank owned life insurance death benefits | 67,100 | |
Insured executive officers with deferred compensation plans | ||
Bank owned life insurance [Line Items] | ||
Cash surrender value of bank-owned life insurance | 2,200 | 2,100 |
Bank owned life insurance death benefits | 5,800 | 5,700 |
Other insured individuals | ||
Bank owned life insurance [Line Items] | ||
Cash surrender value of bank-owned life insurance | $ 26,100 | $ 25,200 |
Leases (Details)
Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, By Year [Abstract] | |
2,016 | $ 1,227 |
2,017 | 1,089 |
2,018 | 1,030 |
2,019 | 1,044 |
2,020 | 1,036 |
Thereafter | 5,518 |
Total | $ 10,944 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Rent expense | $ 1,700 | $ 1,300 | $ 1,200 |
Leased Vehicles And Other Office Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Rent expense | $ 109 | $ 37 | $ 29 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Operating Expenses [Abstract] | |||
Endowment to First Business Charitable Foundation | $ 0 | $ 0 | $ 1,300 |
General and administrative expenses | 1,759 | 1,024 | 938 |
Travel and other employee expenses | 1,277 | 1,069 | 877 |
Computer software expenses | 1,649 | 886 | 677 |
Partnership (income) loss | (481) | (774) | 437 |
Foreclosed properties expenses | 52 | 5 | 185 |
Other expenses | 295 | 202 | 240 |
Total other operating expenses | $ 4,551 | $ 2,412 | $ 4,654 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current Income Tax Expense (Benefit) [Abstract] | |||||||||||
Current federal tax expense | $ 5,881 | $ 4,235 | $ 3,605 | ||||||||
Current state tax expense | 1,338 | 1,459 | 1,356 | ||||||||
Current tax expense | 7,219 | 5,694 | 4,961 | ||||||||
Deferred Income Tax Expense (Benefit) [Abstract] | |||||||||||
Deferred federal tax expense (benefit) | 1,036 | 1,299 | 2,257 | ||||||||
Deferred state tax expense (benefit) | 122 | 90 | 171 | ||||||||
Deferred tax expense (benefit) | 1,158 | 1,389 | 2,428 | ||||||||
Total income tax expense | $ 2,185 | $ 2,060 | $ 1,962 | $ 2,170 | $ 1,453 | $ 1,883 | $ 1,994 | $ 1,753 | $ 8,377 | $ 7,083 | $ 7,389 |
Income Taxes Schedule Of Deferr
Income Taxes Schedule Of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Deferred tax assets, allowance for loan and lease losses | $ 6,422 | $ 5,501 |
Deferred Tax Assets, Tax Deferred Expense, Excess Book Basis Over Tax Basis for Net Assets Acquired in Acquisitions | 697 | 2,082 |
Deferred tax assets, deferred compensation | 1,305 | 1,332 |
Deferred tax assets, state net operating loss carryforwards | 666 | 694 |
Deferred tax assets, write-down of foreclosed properties | 14 | 1 |
Deferred tax assets, non-accrual loan interest | 813 | 751 |
Deferred tax assets, capital loss carryforwards | 33 | 32 |
Deferred tax assets, unrealized loss on securities | 50 | 0 |
Deferred tax assets, other | 328 | 305 |
Total deferred tax assets before valuation allowance | 10,328 | 10,698 |
Deferred tax assets, valuation allowance | (68) | (68) |
Total deferred tax assets | 10,260 | 10,630 |
Deferred tax liabilities: | ||
Deferred tax liabilities, leasing and fixed asset activities | 6,878 | 6,393 |
Deferred Tax Liabilities, Intangible Assets | 612 | 364 |
Deferred tax liabilities, unrealized gain on securities | 0 | 137 |
Deferred tax liabilities, other | 137 | 133 |
Total deferred tax liabilities | 7,627 | 7,027 |
Net deferred tax asset | $ 2,633 | $ 3,603 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of the Change in Net Deferred Tax Assets to Deferred Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Change in net deferred tax assets | $ (970) | $ (119) | $ (861) |
Deferred taxes allocated to other comprehensive income | (188) | 352 | (1,567) |
Deferred Tax Assets Acquired in Business Acquisitions | 0 | (1,622) | 0 |
Deferred income tax (expense) benefit | $ (1,158) | $ (1,389) | $ (2,428) |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income before income tax expense | $ 6,268 | $ 6,441 | $ 5,820 | $ 6,362 | $ 5,197 | $ 5,436 | $ 5,499 | $ 5,090 | $ 24,891 | $ 21,222 | $ 21,135 |
Income tax reconciliation, tax expense at statutory federal rate of 34% applied to income before income tax expense | 8,568 | 7,305 | 7,275 | ||||||||
Income tax reconciliation, state income tax, net of federal effect | 968 | 1,000 | 906 | ||||||||
Income tax reconciliation, tax exempt income tax-exempt security and loan income, net of TEFRA adjustments | (879) | (736) | (682) | ||||||||
Income tax reconciliation, change in valuation allowance | 0 | (1) | 59 | ||||||||
Income tax reconciliation, tax exempt income bank-owned life insurance | (330) | (296) | (291) | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | 0 | 124 | 0 | ||||||||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | (246) | (375) | 0 | ||||||||
Income tax reconciliation, other adjustments | 296 | 62 | 122 | ||||||||
Total income tax expense | $ 2,185 | $ 2,060 | $ 1,962 | $ 2,170 | $ 1,453 | $ 1,883 | $ 1,994 | $ 1,753 | $ 8,377 | $ 7,083 | $ 7,389 |
Effective tax rate | 33.65% | 33.38% | 34.96% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
Unrecognized tax benefits at end of year | $ 27 | $ 22 |
Unrecognized tax benefits, additions for tax positions of prior years | 0 | |
Unrecognized tax benefits, reductions for tax positions of prior years | 0 | |
Unrecognized tax benefits, decrease resulting from settlements with taxing authorities | 0 | |
Unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months | $ 0 | |
Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards expire | Jan. 1, 2023 | |
Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards expire | Jan. 1, 2032 | |
State and local jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
State net operating loss carryforwards | $ 12,900 | 13,400 |
Operating loss carryforwards, valuation allowance | (68) | $ (68) |
Other tax carryforward, valuation allowance | $ 0 |
Derivative Financial Instrum114
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives not designated as hedging instruments, fair value | ||
Interest rate swaps - assets | $ 552 | $ 575 |
Interest rate swaps - liabilities | $ 552 | $ 575 |
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 Instrum115
Derivative Financial Instruments (Narrative Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives | ||
Interest rate swaps - assets | $ 552 | $ 575 |
Interest rate swaps - liabilities | 552 | $ 575 |
Derivative asset, fair value, amount offset against collateral | 0 | |
Derivative hedging instruments | $ 0 | |
Interest rate derivatives, line item on income statement for gain (loss) | other non-interest income | |
To commercial borrowers, corporation receives fixed rates and pays floating rates | ||
Derivatives | ||
Interest rate swaps - assets | $ 552 | |
To commercial borrowers, corporation receives fixed rates and pays floating rates | Minimum | ||
Derivatives | ||
Derivative, maturity date | Mar. 15, 2016 | |
To commercial borrowers, corporation receives fixed rates and pays floating rates | Maximum | ||
Derivatives | ||
Derivative, maturity date | Feb. 15, 2023 | |
To dealer countparties, corporation pays fixed rates and receives floating rates | ||
Derivatives | ||
Interest rate swaps - liabilities | $ 552 | |
Interest rate derivative instruments not designated as hedging instruments at fair value, net | $ (552) | |
To dealer countparties, corporation pays fixed rates and receives floating rates | Minimum | ||
Derivatives | ||
Derivative, maturity date | Mar. 15, 2016 | |
To dealer countparties, corporation pays fixed rates and receives floating rates | Maximum | ||
Derivatives | ||
Derivative, maturity date | Feb. 15, 2023 | |
Not designated as hedging instrument | To commercial borrowers, corporation receives fixed rates and pays floating rates | ||
Derivatives | ||
Derivative, notional amount | $ 24,700 | |
Not designated as hedging instrument | To dealer countparties, corporation pays fixed rates and receives floating rates | ||
Derivatives | ||
Derivative, notional amount | $ 24,700 |
Commitments and Contingencie116
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments to extend credit, primarily commercial loans | ||
Lending Related Commitments by Type [Line Items] | ||
Lending related commitments | $ 512,627 | $ 406,183 |
Standby letters of credit | ||
Lending Related Commitments by Type [Line Items] | ||
Lending related commitments | $ 18,622 | $ 17,555 |
Commitments and Contingencie117
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued credit losses for financial instruments with off-balance-sheet risk | $ 0 | $ 0 |
Fair Value (Measured on a Recur
Fair Value (Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Liabilities measured on a recurring basis, fair value | $ 552 | $ 575 |
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 | 552 | 575 |
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 | 552 | 575 |
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 | 552 | 575 |
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 | 4,283 | 578 |
Municipal obligations | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets measured on a recurring basis, fair value | 0 | 0 |
Municipal obligations | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets measured on a recurring basis, fair value | 4,283 | 578 |
Municipal obligations | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets measured on a recurring basis, fair value | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets measured on a recurring basis, fair value | 1,269 | 1,510 |
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 | 1,269 | 1,510 |
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 | 8,017 | 8,965 |
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 | 8,017 | 8,965 |
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 | 44,543 | 68,874 |
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 | 44,543 | 68,874 |
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 | 82,436 | 64,771 |
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 | 82,436 | 64,771 |
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 (Measured on a Non-R
Fair Value (Measured on a Non-Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ||
Total gains (losses) on impaired loans | $ 0 | $ 0 |
Total gains (losses) on foreclosed properties | (36) | (4) |
Valuation Allowance for Impairment of Recognized Servicing Assets, Provisions | 0 | 0 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ||
Assets measured on a non-recurring basis, fair value | 17,800 | 8,600 |
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 | 11,518 | 7,025 |
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 | 6,245 | 1,540 |
Foreclosed properties | ||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ||
Assets measured on a non-recurring basis, fair value | 1,677 | 1,693 |
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 | 1,677 | 1,693 |
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 |
Loan servicing rights | ||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ||
Assets measured on a non-recurring basis, fair value | 1,563 | 943 |
Loan servicing rights | 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 |
Loan servicing rights | 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 | 0 | 0 |
Loan servicing rights | 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 | $ 1,563 | $ 943 |
Fair Value (Foreclosed Properti
Fair Value (Foreclosed Properties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | |||
Foreclosed properties at the beginning of the period | $ 1,693 | $ 333 | |
Repossessed Assets Acquired in Acquisitions, Fair Value | 0 | 1,605 | $ 0 |
Loans transferred to foreclosed properties, at lower of cost or fair value | 341 | 0 | 1,381 |
Payments to priority lien holders of foreclosed properties | 0 | 0 | |
Proceeds from sale of foreclosed properties | (528) | (255) | (2,739) |
Net gain on sale of foreclosed properties | 207 | 14 | |
Impairment valuation | (36) | (4) | |
Foreclosed properties at the end of the period | $ 1,677 | $ 1,693 | $ 333 |
Fair Value (Fair Value by Balan
Fair Value (Fair Value by Balance Sheet Groupings) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial assets: | ||||
Cash and cash equivalents, carrying amount | $ 113,564 | $ 103,237 | $ 81,286 | $ 85,586 |
Securities available-for-sale, carrying amount | 140,548 | 144,698 | ||
Held-to-maturity securities | 37,282 | 41,563 | ||
Loans Receivable Held-for-sale, Amount | 2,702 | 1,340 | ||
Loans and leases receivable, net amount, carrying amount | 1,414,649 | 1,265,098 | ||
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 2,843 | 2,340 | ||
Cash surrender value of life insurance, carrying amount | 28,298 | 27,314 | ||
Accrued interest receivable, carrying amount | 4,412 | 3,932 | ||
Interest rate swaps - assets | 552 | 575 | ||
Cash and cash equivalents, fair value | 113,564 | 103,227 | ||
Securities available-for-sale, fair value | 140,548 | 144,698 | ||
Held-to-maturity Securities, Fair Value | 37,558 | 41,694 | ||
Loans Held-for-sale, Fair Value Disclosure | 2,702 | 1,340 | ||
Loans and lease receivables, net, fair value | 1,445,773 | 1,285,162 | ||
Federal Home Loan Bank and Federal Reserve Bank Stock, fair value | 2,843 | 2,340 | ||
Cash surrender value of life insurance, fair value | 28,298 | 27,314 | ||
Accrued interest receivable, fair value | 4,412 | 3,932 | ||
Interest rate swaps, fair value | 552 | 575 | ||
Financial liabilities: | ||||
Deposits, carrying amount | 1,577,231 | 1,438,268 | ||
Federal Home Loan Bank and other borrowings, carrying amount | 35,226 | 33,994 | ||
Junior subordinated notes, carrying amount | 10,315 | 10,315 | ||
Interest rate swaps - liabilities | 552 | 575 | ||
Accrued interest payable, carrying amount | 1,766 | 1,574 | ||
Standby letters of credit, carrying amount | 183 | 192 | ||
Commitments to extend credit, carrying amount | 0 | 0 | ||
Deposits, fair value | 1,577,838 | 1,440,248 | ||
Federal Home Loan Bank and other borrowings, fair value | 35,839 | 34,590 | ||
Junior subordinated notes, fair value | 6,939 | 7,101 | ||
Interest rate swaps, fair value | 552 | 575 | ||
Accrued interest payable, fair value | 1,766 | 1,574 | ||
Standby letters of credit, fair value | 183 | 192 | ||
Fair Value Measurements - Level 1 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, fair value | 100,063 | 85,937 | ||
Securities available-for-sale, fair value | 0 | 0 | ||
Held-to-maturity Securities, Fair Value | 0 | 0 | ||
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 | ||
Loans and lease receivables, net, fair value | 0 | 0 | ||
Federal Home Loan Bank and Federal Reserve Bank Stock, fair value | 0 | 0 | ||
Cash surrender value of life insurance, fair value | 28,298 | 27,314 | ||
Accrued interest receivable, fair value | 4,412 | 3,932 | ||
Interest rate swaps, fair value | 0 | 0 | ||
Financial liabilities: | ||||
Deposits, fair value | 1,009,762 | 884,292 | ||
Federal Home Loan Bank and other borrowings, fair value | 0 | 0 | ||
Junior subordinated notes, fair value | 0 | 0 | ||
Interest rate swaps, fair value | 0 | 0 | ||
Accrued interest payable, fair value | 1,766 | 1,574 | ||
Standby letters of credit, fair value | 0 | 0 | ||
Fair Value Measurements - Level 2 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, fair value | 4,451 | 6,890 | ||
Securities available-for-sale, fair value | 140,548 | 144,698 | ||
Held-to-maturity Securities, Fair Value | 37,558 | 41,694 | ||
Loans Held-for-sale, Fair Value Disclosure | 2,702 | 1,340 | ||
Loans and lease receivables, net, fair value | 11,518 | 7,025 | ||
Federal Home Loan Bank and Federal Reserve Bank Stock, fair value | 0 | 0 | ||
Cash surrender value of life insurance, fair value | 0 | 0 | ||
Accrued interest receivable, fair value | 0 | 0 | ||
Interest rate swaps, fair value | 552 | 575 | ||
Financial liabilities: | ||||
Deposits, fair value | 568,076 | 555,956 | ||
Federal Home Loan Bank and other borrowings, fair value | 35,839 | 34,590 | ||
Junior subordinated notes, fair value | 0 | 0 | ||
Interest rate swaps, fair value | 552 | 575 | ||
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 | 9,050 | 10,400 | ||
Securities available-for-sale, fair value | 0 | 0 | ||
Held-to-maturity Securities, Fair Value | 0 | 0 | ||
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 | ||
Loans and lease receivables, net, fair value | 1,434,255 | 1,278,137 | ||
Federal Home Loan Bank and Federal Reserve Bank Stock, fair value | 2,843 | 2,340 | ||
Cash surrender value of life insurance, fair value | 0 | 0 | ||
Accrued interest receivable, fair value | 0 | 0 | ||
Interest rate swaps, fair value | 0 | 0 | ||
Financial liabilities: | ||||
Deposits, fair value | 0 | 0 | ||
Federal Home Loan Bank and other borrowings, fair value | 0 | 0 | ||
Junior subordinated notes, fair value | 6,939 | 7,101 | ||
Interest rate swaps, fair value | 0 | 0 | ||
Accrued interest payable, fair value | 0 | 0 | ||
Standby letters of credit, fair value | $ 183 | $ 192 |
Fair Value (Narrative Disclosur
Fair Value (Narrative Disclosures) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)foreclosed_property | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Fair Value Inputs, Assets, Quantitative Information | |||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount1 | $ 0 | $ 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount1 | 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, Amount1 | 0 | 0 | |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount1 | 0 | 0 | |
Fair value, liabilities, transfers into level 3 | 0 | 0 | |
Fair value, liabilities, transfers out of level 3 | 0 | 0 | |
Servicing Asset at Fair Value, Amount | 1,563,000 | 943,000 | $ 0 |
Net losses due to impairment valuation | 36,000 | 4,000 | |
Commercial paper | 9,100,000 | 10,400,000 | |
Certificates of deposit, at carrying value | 4,500,000 | 6,900,000 | |
FHLB stock par value equals carrying value | $ 100 | ||
Minimum | |||
Fair Value Inputs, Assets, Quantitative Information | |||
Quantification of unobservable inputs for level 3 values for impaired loans | 10.00% | ||
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 | 66.00% | ||
Impaired loans | |||
Fair Value Inputs, Assets, Quantitative Information | |||
Assets measured on a non-recurring basis, fair value | $ 17,800,000 | 8,600,000 | |
Foreclosed properties | |||
Fair Value Inputs, Assets, Quantitative Information | |||
Assets measured on a non-recurring basis, fair value | 1,677,000 | 1,693,000 | |
Fair Value Measurements - Level 3 Inputs | Impaired loans | |||
Fair Value Inputs, Assets, Quantitative Information | |||
Assets measured on a non-recurring basis, fair value | 6,245,000 | 1,540,000 | |
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 assets | foreclosed_property | 0 |
Condensed Parent Only Financ123
Condensed Parent Only Financial Information Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and cash equivalents | $ 113,564 | $ 103,237 | $ 81,286 | $ 85,586 |
Premises and equipment, net | 3,954 | 3,943 | ||
Other assets | 24,882 | 26,217 | ||
Total assets | 1,782,892 | 1,629,387 | ||
Liabilities and Stockholders’ Equity | ||||
Borrowed funds | 45,541 | 44,309 | ||
Other liabilities | 9,288 | 9,062 | ||
Total liabilities | 1,632,060 | 1,491,639 | ||
Stockholders’ equity | 150,832 | 137,748 | 109,275 | 99,539 |
Total liabilities and stockholders’ equity | 1,782,892 | 1,629,387 | ||
Parent company | ||||
Assets | ||||
Cash and cash equivalents | 1,099 | 1,179 | $ 4,855 | $ 1,032 |
Investments in subsidiaries, at equity | 187,530 | 170,923 | ||
Premises and equipment, net | 1,519 | 1,388 | ||
Other assets | 2,849 | 2,695 | ||
Total assets | 192,997 | 176,185 | ||
Liabilities and Stockholders’ Equity | ||||
Borrowed funds | 35,751 | 34,251 | ||
Other liabilities | 6,414 | 4,186 | ||
Total liabilities | 42,165 | 38,437 | ||
Stockholders’ equity | 150,832 | 137,748 | ||
Total liabilities and stockholders’ equity | $ 192,997 | $ 176,185 |
Condensed Parent Only Financ124
Condensed Parent Only Financial Information Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest income | $ 18,600 | $ 18,135 | $ 17,520 | $ 18,216 | $ 16,863 | $ 13,871 | $ 13,565 | $ 13,402 | $ 72,471 | $ 57,701 | $ 53,810 |
Interest expense | 3,688 | 3,525 | 3,332 | 3,286 | 3,268 | 2,936 | 2,766 | 2,601 | 13,831 | 11,571 | 11,705 |
Net interest income | 14,912 | 14,610 | 14,188 | 14,930 | 13,595 | 10,935 | 10,799 | 10,801 | 58,640 | 46,130 | 42,105 |
Non-interest income | |||||||||||
Total non-interest income | 4,935 | 4,102 | 4,126 | 3,848 | 2,965 | 2,459 | 2,358 | 2,321 | 17,011 | 10,103 | 8,442 |
Non-interest expense | 11,684 | 11,984 | 11,974 | 11,732 | 10,127 | 8,047 | 7,749 | 7,852 | 47,374 | 33,775 | 30,371 |
Loss before income tax benefit and equity in undistributed net income of consolidated subsidiaries | 6,268 | 6,441 | 5,820 | 6,362 | 5,197 | 5,436 | 5,499 | 5,090 | 24,891 | 21,222 | 21,135 |
Income tax benefit | 2,185 | 2,060 | 1,962 | 2,170 | 1,453 | 1,883 | 1,994 | 1,753 | 8,377 | 7,083 | 7,389 |
Net income | $ 4,083 | $ 4,381 | $ 3,858 | $ 4,192 | $ 3,744 | $ 3,553 | $ 3,505 | $ 3,337 | 16,514 | 14,139 | 13,746 |
Parent company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 2,777 | 2,071 | 1,952 | ||||||||
Net interest income | (2,777) | (2,071) | (1,952) | ||||||||
Non-interest income | |||||||||||
Consulting and rental income from consolidated subsidiaries | 13,398 | 10,776 | 9,738 | ||||||||
Other | 35 | 34 | 34 | ||||||||
Total non-interest income | 13,433 | 10,810 | 9,772 | ||||||||
Non-interest expense | 16,854 | 13,444 | 10,558 | ||||||||
Loss before income tax benefit and equity in undistributed net income of consolidated subsidiaries | (6,198) | (4,705) | (2,738) | ||||||||
Income tax benefit | (2,527) | (1,659) | (1,050) | ||||||||
Loss before equity in undistributed net income of consolidated subsidiaries | (3,671) | (3,046) | (1,688) | ||||||||
Equity in undistributed net income of consolidated subsidiaries | 20,185 | 17,185 | 15,434 | ||||||||
Net income | $ 16,514 | $ 14,139 | $ 13,746 |
Condensed Parent Only Financ125
Condensed Parent Only Financial Information Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Cash Provided by (Used in) Operating Activities | |||||||||||
Net income | $ 4,083 | $ 4,381 | $ 3,858 | $ 4,192 | $ 3,744 | $ 3,553 | $ 3,505 | $ 3,337 | $ 16,514 | $ 14,139 | $ 13,746 |
Equity in undistributed earnings of consolidated subsidiaries | (481) | (774) | 437 | ||||||||
Share-based compensation | 1,063 | 887 | 660 | ||||||||
Excess tax benefit from share-based compensation | (267) | (584) | (365) | ||||||||
Increase in other liabilities | 1,269 | 2,390 | (3,681) | ||||||||
Other, net | (1,033) | (5,448) | 2,713 | ||||||||
Net cash provided by (used in) operating activities | 23,220 | 11,874 | 15,902 | ||||||||
Net Cash Provided by (Used in) Investing Activities | |||||||||||
Net cash (used in) provided by investing activities | (149,585) | (332,749) | (54,916) | ||||||||
Net Cash Provided by (Used in) Financing Activities | |||||||||||
Net increase (decrease) in short-term borrowed funds | 1,500 | 1,000 | 0 | ||||||||
Proceeds from issuance of long-term debt, net of issuance costs | 0 | 14,469 | 0 | ||||||||
Repayment of long-term debt | 0 | (4,000) | 0 | ||||||||
Proceeds from issuance of common stock | 0 | 16,557 | 0 | ||||||||
Proceeds from exercise of stock options | 300 | 936 | 1,474 | ||||||||
Purchase of treasury stock | (946) | (1,795) | (1,782) | ||||||||
Excess tax benefit from share-based compensation | 267 | 584 | 365 | ||||||||
Dividends paid | (3,816) | (3,396) | (2,475) | ||||||||
Net cash provided by (used in) financing activities | 136,692 | 342,826 | 34,714 | ||||||||
Net (decrease) increase in cash and cash equivalents | 10,327 | 21,951 | (4,300) | ||||||||
Cash and cash equivalents at the beginning of the period | 103,237 | 81,286 | 103,237 | 81,286 | 85,586 | ||||||
Cash and cash equivalents at the end of the period | 113,564 | 103,237 | 113,564 | 103,237 | 81,286 | ||||||
Parent company | |||||||||||
Net Cash Provided by (Used in) Operating Activities | |||||||||||
Net income | 16,514 | 14,139 | 13,746 | ||||||||
Equity in undistributed earnings of consolidated subsidiaries | (20,185) | (17,185) | (15,434) | ||||||||
Share-based compensation | 448 | 416 | 311 | ||||||||
Excess tax benefit from share-based compensation | (162) | (305) | (145) | ||||||||
Increase in other liabilities | 2,390 | 1,002 | 867 | ||||||||
Other, net | (319) | (842) | (34) | ||||||||
Net cash provided by (used in) operating activities | (1,314) | (2,775) | (689) | ||||||||
Net Cash Provided by (Used in) Investing Activities | |||||||||||
Dividends received from subsidiaries | 7,034 | 8,000 | 8,000 | ||||||||
Capital contributions to subsidiaries | (3,000) | (32,980) | (850) | ||||||||
Net cash (used in) provided by investing activities | 4,034 | (24,980) | 7,150 | ||||||||
Net Cash Provided by (Used in) Financing Activities | |||||||||||
Net increase (decrease) in short-term borrowed funds | 1,500 | 1,000 | 0 | ||||||||
Proceeds from issuance of long-term debt, net of issuance costs | 0 | 14,469 | 0 | ||||||||
Repayment of long-term debt | 0 | (4,000) | 0 | ||||||||
Proceeds from issuance of common stock | 0 | 16,560 | 0 | ||||||||
Proceeds from exercise of stock options | 300 | 936 | 1,474 | ||||||||
Purchase of treasury stock | (946) | (1,795) | (1,782) | ||||||||
Excess tax benefit from share-based compensation | 162 | 305 | 145 | ||||||||
Dividends paid | (3,816) | (3,396) | (2,475) | ||||||||
Net cash provided by (used in) financing activities | (2,800) | 24,079 | (2,638) | ||||||||
Net (decrease) increase in cash and cash equivalents | (80) | (3,676) | 3,823 | ||||||||
Cash and cash equivalents at the beginning of the period | $ 1,179 | $ 4,855 | 1,179 | 4,855 | 1,032 | ||||||
Cash and cash equivalents at the end of the period | $ 1,099 | $ 1,179 | $ 1,099 | $ 1,179 | $ 4,855 |
Condensed Quarterly Earnings (D
Condensed Quarterly Earnings (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 18,600 | $ 18,135 | $ 17,520 | $ 18,216 | $ 16,863 | $ 13,871 | $ 13,565 | $ 13,402 | $ 72,471 | $ 57,701 | $ 53,810 |
Interest expense | (3,688) | (3,525) | (3,332) | (3,286) | (3,268) | (2,936) | (2,766) | (2,601) | (13,831) | (11,571) | (11,705) |
Net interest income | 14,912 | 14,610 | 14,188 | 14,930 | 13,595 | 10,935 | 10,799 | 10,801 | 58,640 | 46,130 | 42,105 |
Provision for loan losses | (1,895) | (287) | (520) | (684) | (1,236) | 89 | 91 | (180) | (3,386) | (1,236) | 959 |
Non-interest income | 4,935 | 4,102 | 4,126 | 3,848 | 2,965 | 2,459 | 2,358 | 2,321 | 17,011 | 10,103 | 8,442 |
Non-interest expense | (11,684) | (11,984) | (11,974) | (11,732) | (10,127) | (8,047) | (7,749) | (7,852) | (47,374) | (33,775) | (30,371) |
Income before income tax expense | 6,268 | 6,441 | 5,820 | 6,362 | 5,197 | 5,436 | 5,499 | 5,090 | 24,891 | 21,222 | 21,135 |
Income taxes | (2,185) | (2,060) | (1,962) | (2,170) | (1,453) | (1,883) | (1,994) | (1,753) | (8,377) | (7,083) | (7,389) |
Net income | $ 4,083 | $ 4,381 | $ 3,858 | $ 4,192 | $ 3,744 | $ 3,553 | $ 3,505 | $ 3,337 | $ 16,514 | $ 14,139 | $ 13,746 |
Basic earnings per common share | $ 0.47 | $ 0.50 | $ 0.45 | $ 0.48 | $ 0.44 | $ 0.45 | $ 0.44 | $ 0.43 | $ 1.90 | $ 1.76 | $ 1.75 |
Diluted earnings per common share | 0.47 | 0.50 | 0.45 | 0.48 | 0.44 | 0.45 | 0.44 | 0.42 | 1.90 | 1.75 | 1.74 |
Dividends declared per share | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.42 | $ 0.28 |