Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 22, 2016 | |
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-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,700,172 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 13,094 | $ 14,640 |
Short-term investments | 91,760 | 98,924 |
Cash and cash equivalents | 104,854 | 113,564 |
Securities available-for-sale, at fair value | 140,823 | 140,548 |
Securities held-to-maturity, at amortized cost | 36,485 | 37,282 |
Loans held-for-sale | 1,697 | 2,702 |
Loans and leases receivable, net of allowance for loan and lease losses of $16,684 and $16,316, respectively | 1,431,902 | 1,414,649 |
Premises and equipment, net | 3,868 | 3,954 |
Foreclosed properties | 1,677 | 1,677 |
Cash surrender value of bank-owned life insurance | 28,541 | 28,298 |
Investment in Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 2,734 | 2,843 |
Accrued interest receivable and other assets | 24,945 | 24,071 |
Goodwill and other intangible assets | 12,606 | 12,493 |
Total assets | 1,790,132 | 1,782,081 |
Liabilities and Stockholders’ Equity | ||
Deposits | 1,581,588 | 1,577,231 |
Federal Home Loan Bank and other borrowings | 35,011 | 34,740 |
Junior subordinated notes | 9,993 | 9,990 |
Accrued interest payable and other liabilities | 8,341 | 9,288 |
Total liabilities | 1,634,933 | 1,631,249 |
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, 8,923,236 and 8,922,375 shares issued, 8,700,172 and 8,699,410 shares outstanding, at March 31, 2016 and December 31, 2015, respectively | 89 | 89 |
Additional paid-in capital | 76,851 | 76,549 |
Retained earnings | 84,089 | 80,584 |
Accumulated other comprehensive income | 482 | (80) |
Treasury stock, 223,064 and 222,965 shares at March 31, 2016 and December 31, 2015, respectively, at cost | (6,312) | (6,310) |
Total stockholders’ equity | 155,199 | 150,832 |
Total liabilities and stockholders’ equity | $ 1,790,132 | $ 1,782,081 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets - Parenthetical [Abstract] | ||
Allowance for loan and lease losses | $ 16,684 | $ 16,316 |
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 | 8,923,236 | 8,922,375 |
Common stock, shares outstanding | 8,700,172 | 8,699,410 |
Treasury stock, shares | 223,064 | 222,965 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Loans and leases | $ 18,445 | $ 17,325 |
Securities income | 722 | 776 |
Short-term investments | 176 | 115 |
Total interest income | 19,343 | 18,216 |
Interest expense: | ||
Deposits | 3,053 | 2,569 |
Notes payable and other borrowings | 474 | 443 |
Junior subordinated notes | 277 | 274 |
Total interest expense | 3,804 | 3,286 |
Net interest income | 15,539 | 14,930 |
Provision for loan and lease losses | 525 | 684 |
Net interest income after provision for loan and lease losses | 15,014 | 14,246 |
Non-interest income: | ||
Trust and investment services fee income | 1,273 | 1,207 |
Gain on sale of SBA loans | 1,376 | 505 |
Gain on sale of residential mortgage loans | 145 | 148 |
Service charges on deposits | 742 | 696 |
Loan fees | 609 | 502 |
Increase in cash surrender value of bank-owned life insurance | 243 | 234 |
Other | 206 | 556 |
Total non-interest income | 4,594 | 3,848 |
Non-interest expense: | ||
Compensation | 8,370 | 7,354 |
Occupancy | 508 | 500 |
Professional fees | 861 | 989 |
Data processing | 651 | 530 |
Marketing | 734 | 642 |
Equipment | 280 | 308 |
FDIC insurance | 291 | 213 |
Collateral liquidation costs | 47 | 302 |
Net gain on foreclosed properties | 0 | (16) |
Other | 957 | 910 |
Total non-interest expense | 12,699 | 11,732 |
Income before income tax expense | 6,909 | 6,362 |
Income tax expense | 2,362 | 2,170 |
Net income | $ 4,547 | $ 4,192 |
Earnings per common share: | ||
Basic | $ 0.52 | $ 0.48 |
Diluted | 0.52 | 0.48 |
Dividends declared per share | $ 0.12 | $ 0.11 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,547 | $ 4,192 |
Other comprehensive income, before tax | ||
Net unrealized securities gains arising during the period | 876 | 765 |
Amortization of net unrealized losses transferred from available-for-sale | 40 | 63 |
Income tax expense | (354) | (320) |
Total other comprehensive income | 562 | 508 |
Comprehensive income | $ 5,109 | $ 4,700 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock |
Common shares outstanding at Dec. 31, 2014 | 8,671,854 | |||||
Beginning balance at Dec. 31, 2014 | $ 137,748 | $ 45 | $ 74,963 | $ 67,886 | $ 218 | $ (5,364) |
Net income | 4,192 | 4,192 | ||||
Other comprehensive income (loss) | 508 | 508 | ||||
Exercise of stock options, shares | 24,000 | |||||
Exercise of stock options | 301 | $ 1 | 300 | |||
Share-based compensation - restricted shares, shares issued | (5,788) | |||||
Share-based compensation - restricted shares | 234 | 234 | ||||
Share-based compensation - tax benefits | 74 | 74 | ||||
Cash dividends ($0.11 per share during 2015 and $0.12 per share during 2016) | (954) | (954) | ||||
Treasury stock purchased, shares | (17,744) | |||||
Treasury stock purchased | (414) | (414) | ||||
Common shares outstanding at Mar. 31, 2015 | 8,672,322 | |||||
Ending balance at Mar. 31, 2015 | $ 141,689 | $ 46 | 75,571 | 71,124 | 726 | (5,778) |
Common shares outstanding at Dec. 31, 2015 | 8,699,410 | 8,699,410 | ||||
Beginning balance at Dec. 31, 2015 | $ 150,832 | $ 89 | 76,549 | 80,584 | (80) | (6,310) |
Net income | 4,547 | 4,547 | ||||
Other comprehensive income (loss) | 562 | 562 | ||||
Issuance of common stock, shares | 1,250 | |||||
Issuance of common stock | 27 | $ 0 | 27 | |||
Share-based compensation - restricted shares, shares issued | (389) | |||||
Share-based compensation - restricted shares | 269 | 269 | ||||
Share-based compensation - tax benefits | 6 | 6 | ||||
Cash dividends ($0.11 per share during 2015 and $0.12 per share during 2016) | (1,042) | (1,042) | ||||
Treasury stock purchased, shares | (99) | |||||
Treasury stock purchased | $ (2) | (2) | ||||
Common shares outstanding at Mar. 31, 2016 | 8,700,172 | 8,700,172 | ||||
Ending balance at Mar. 31, 2016 | $ 155,199 | $ 89 | $ 76,851 | $ 84,089 | $ 482 | $ (6,312) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Common stock, cash dividends, per share, declared | $ 0.12 | $ 0.11 |
Retained earnings | ||
Common stock, cash dividends, per share, declared | $ 0.12 | $ 0.11 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net income | $ 4,547 | $ 4,192 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes, net | (98) | 648 |
Provision for loan and lease losses | 525 | 684 |
Depreciation, amortization and accretion, net | 355 | (660) |
Share-based compensation | 296 | 234 |
Increase in cash surrender value of bank-owned life insurance | (243) | (234) |
Origination of loans for sale | (17,802) | (15,499) |
Sale of loans originated for sale | 26,104 | 15,096 |
Gain (Loss) on Sale of Loans and Leases | 1,521 | 653 |
Net gain on foreclosed properties, including impairment valuation | 0 | (16) |
Excess tax benefit from share-based compensation | (6) | (74) |
Increase in accrued interest receivable and other assets | (657) | (394) |
Decrease in accrued interest payable and other liabilities | (1,685) | (562) |
Net cash provided by operating activities | 9,815 | 2,762 |
Investing activities | ||
Proceeds from maturities, redemptions and paydowns of available-for-sale securities | 9,126 | 10,845 |
Proceeds from maturities, redemptions and paydowns of held-to-maturity securities | 802 | 984 |
Purchases of available-for-sale securities | (8,802) | (8,636) |
Proceeds from sale of foreclosed properties | 0 | 143 |
Net increase in loans and leases | (23,321) | (14,413) |
Distributions from limited partnerships | 0 | 332 |
Investment in FHLB and FRB Stock | (7) | (458) |
Proceeds from sale of FHLB Stock | 116 | 0 |
Purchases of leasehold improvements and equipment, net | (113) | (119) |
Net cash used in investing activities | (22,199) | (11,322) |
Financing activities | ||
Net increase in deposits | 4,412 | 47,704 |
Repayment of FHLB advances | 1,500 | 0 |
Net increase in short-term borrowed funds | 1,800 | 500 |
Excess tax benefit from share-based compensation | 6 | 74 |
Cash dividends paid | (1,042) | (954) |
Exercise of stock options | 0 | 300 |
Purchase of treasury stock | (2) | (414) |
Net cash provided by financing activities | 3,674 | 47,210 |
Net (decrease) increase in cash and cash equivalents | (8,710) | 38,650 |
Cash and cash equivalents at the beginning of the period | 113,564 | 103,237 |
Cash and cash equivalents at the end of the period | 104,854 | 141,887 |
Supplementary cash flow information | ||
Interest paid on deposits and borrowings | 3,633 | 3,117 |
Income taxes paid | 1,521 | 525 |
Transfer of securities from available-for-sale to held-to-maturity | $ 5,776 | $ 2,130 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 Northeast 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 Presentation. The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s Consolidated Financial Statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2015 . The unaudited Consolidated Financial Statements include the accounts of the Corporation and its wholly owned subsidiaries. In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 810, the Corporation’s ownership interest in FBFS Statutory Trust II (“Trust II”) has not been consolidated into the financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. Management of the Corporation is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of foreclosed property, lease residuals, property under operating leases, securities, income taxes and the level of the allowance for loan and lease losses. The results of operations for the three -month period ended March 31, 2016 are not necessarily indicative of results that may be expected for any other interim period or the entire fiscal year ending December 31, 2015 . Certain amounts in prior periods may have been reclassified to conform to the current presentation. Subsequent events have been evaluated through the date of the issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. The Corporation has not changed its significant accounting and reporting policies from those disclosed in the Corporation’s Form 10-K for the year ended December 31, 2015 except as described further below in this Note 1 . Recent Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The 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. The Corporation adopted the standard during the first quarter of 2016, as required, with no material impact on its results of operations, financial position, or liquidity. In April 2015, the FASB issued ASU 2015-03, “ Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The ASU requires that debt issuance costs related to recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Prior to this ASU, debt issuance costs were required to be presented as an asset. The ASU is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. In August 2015, the FASB expanded this amendment to include SEC staff views related to debt issuance costs associated with line-of-credit arrangements. The SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This amendment is also effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Corporation adopted the standards during the first quarter of 2016, as required, and reclassified $792,000 and $810,000 of debt issuance costs from other assets and presented as a deduction from the debt liability as of March 31, 2016 and December 31, 2015, respectively. The adoption of the standards did not have a material impact on the Corporation’s consolidated results of operations, financial position, or liquidity. 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. In August 2015, the FASB issued ASU No. 2015-14, which defers 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. In March 2016, the FASB issued ASU No. 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net.” The ASU intends to improve the operability and understandability of the implementation guidance of ASU 2014-09 on principal versus agent considerations. The Corporation intends to adopt the accounting standards during the first quarter of 2018, as required, and is currently evaluating the impact on its results of operations, financial position, and 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 adopted the standard during the first quarter of 2016, as required, with no material impact on its 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. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The ASU intends to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities and disclosing key information about leasing arrangements. The ASU will require lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessees’ obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Corporation intends to adopt the accounting standard during the first quarter of 2019, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
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. There were no anti-dilutive employee share-based awards for the three-month periods ended March 31, 2016 and 2015. For the Three Months Ended March 31, 2016 2015 (Dollars in Thousands, Except Per Share Data) Basic earnings per common share Net income $ 4,547 $ 4,192 Less: earnings allocated to participating securities 70 73 Basic earnings allocated to common shareholders $ 4,477 $ 4,119 Weighted-average common shares outstanding, excluding participating securities 8,565,050 8,525,127 Basic earnings per common share $ 0.52 $ 0.48 Diluted earnings per common share Earnings allocated to common shareholders, diluted $ 4,477 $ 4,119 Weighted-average common shares outstanding, excluding participating securities 8,565,050 8,525,127 Dilutive effect of share-based awards — 4,531 Weighted-average diluted common shares outstanding, excluding participating securities 8,565,050 8,529,658 Diluted earnings per common share $ 0.52 $ 0.48 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Corporation adopted the 2012 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2012. The Plan is administered by the Compensation Committee of the Board of Directors of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options (together, “Stock Options”), restricted stock, restricted stock units, dividend equivalent units, and any other type of award permitted by the Plan. As of March 31, 2016 , 310,584 shares were available for future grants under the Plan. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the Plan. The Corporation may issue new shares and shares from treasury for shares delivered under the Plan. Stock Options The Corporation may grant Stock Options to senior executives and other employees under the Plan. Stock Options generally have an exercise price that is equal to the fair value of the common shares on the date the option is awarded. Stock Options granted under the Plan are subject to graded vesting, generally ranging from 4 years to 8 years , and have a contractual term of 10 years . For any new awards issued, compensation expense is recognized over the requisite service period for the entire award on a straight-line basis. No Stock Options have been granted since the Corporation became a reporting company under the Securities Exchange Act of 1934, as amended, and no Stock Options have been modified, repurchased or canceled since such time. For that reason, no stock-based compensation expense related to Stock Options was recognized in the Consolidated Financial Statements for the three months ended March 31, 2016 and 2015 . The benefits of tax deductions as a result of disqualifying dispositions upon exercise of stock options are recognized as a financing cash flow. No Stock Options remained outstanding as of March 31, 2016 and December 31, 2015. 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 typically subject to a vesting period. Compensation expense is recognized over the requisite service period of generally four years for the entire award on a straight-line basis. Upon vesting of restricted share awards, the benefit of tax deductions in excess of recognized compensation expense is recognized as a financing cash flow activity. Restricted share activity for the year ended December 31, 2015 and the three months ended March 31, 2016 was as follows: Number of Restricted Shares Weighted Average Grant-Date Fair Value Nonvested balance as of December 31, 2014 154,998 $ 16.97 Granted 53,790 22.52 Vested (64,874 ) 15.23 Forfeited (8,443 ) 15.03 Nonvested balance as of December 31, 2015 135,471 20.13 Granted 2,905 21.68 Vested (2,246 ) 21.35 Forfeited (2,044 ) 14.50 Nonvested balance as of March 31, 2016 134,086 $ 20.23 As of March 31, 2016 , the Corporation had $2.0 million of deferred compensation expense, which the Corporation expects to recognize over a weighted-average period of approximately 2.63 years. As of March 31, 2016 , all restricted shares that vested were issued. For the three months ended March 31, 2016 and 2015 , share-based compensation expense related to restricted stock included in the Consolidated Statements of Income was as follows: For the Three Months Ended March 31, 2016 2015 (In Thousands) Share-based compensation expense $ 296 $ 234 |
Securities
Securities | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 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 $ 34 $ (14 ) $ 8,067 Municipal obligations 5,176 22 (4 ) 5,194 Asset-backed securities 1,279 — (60 ) 1,219 Collateralized mortgage obligations - government issued 39,577 836 (32 ) 40,381 Collateralized mortgage obligations - government-sponsored enterprises 85,525 509 (72 ) 85,962 $ 139,604 $ 1,401 $ (182 ) $ 140,823 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 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 March 31, 2016 Amortized cost Gross Gross Estimated (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ 1,496 $ 6 $ (3 ) $ 1,499 Municipal obligations 16,026 443 (7 ) 16,462 Collateralized mortgage obligations - government issued 11,176 144 (1 ) 11,319 Collateralized mortgage obligations - government-sponsored enterprises 7,787 146 — 7,933 $ 36,485 $ 739 $ (11 ) $ 37,213 As of December 31, 2015 Amortized cost Gross Gross Estimated fair value (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 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 U.S. Government agency obligations - government-sponsored enterprises represent securities issued by the Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”). Collateralized mortgage obligations - government issued represent securities guaranteed by the Government National Mortgage Association (“GNMA”). Collateralized mortgage obligations - government-sponsored enterprises include securities guaranteed by the FHLMC and the FNMA. Asset-backed securities represent securities issued by the Student Loan Marketing Association (“SLMA”) which are 97% guaranteed by the U.S. government. Municipal obligations include securities issued by various municipalities located primarily within the State of Wisconsin and are primarily general obligation bonds that are tax-exempt in nature. There were no sales of securities available-for-sale for the three months ended March 31, 2016 and 2015 . At March 31, 2016 and December 31, 2015 , securities with a fair value of $21.2 million and $23.0 million , respectively, were pledged to secure interest rate swap contracts, outstanding Federal Home Loan Bank (“FHLB”) advances, if any, and additional FHLB availability. The amortized cost and estimated fair value of securities by contractual maturity at March 31, 2016 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations without call or prepayment penalties. As of March 31, 2016 Available-for-Sale Held-to-Maturity Amortized cost Estimated fair value Amortized cost Estimated (In Thousands) Due in one year or less $ 1,000 $ 1,000 $ — $ — Due in one year through five years 14,019 14,089 4,794 4,847 Due in five through ten years 91,048 91,897 12,727 13,113 Due in over ten years 33,537 33,837 18,964 19,253 $ 139,604 $ 140,823 $ 36,485 $ 37,213 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 March 31, 2016 and December 31, 2015 . At March 31, 2016 , the Corporation held 35 available-for-sale securities that were in an unrealized loss position, respectively. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. At March 31, 2016 , the Corporation held 10 available-for-sale securities that had been in a continuous unrealized 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. The Corporation reviews its securities on a quarterly basis to monitor its exposure to other-than-temporary impairment. Consideration is given to such factors as the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, and an evaluation of the present value of expected future cash flows, if necessary. Based on the Corporation’s evaluation, it is expected that the Corporation will recover the entire amortized cost basis of each security. Accordingly, no other than temporary impairment was recorded in the Consolidated Statements of Income for the three months ended March 31, 2016 and 2015 . A summary of unrealized loss information for securities available-for-sale, categorized by security type follows: As of March 31, 2016 Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 1,746 $ 4 $ 1,990 $ 10 $ 3,736 $ 14 Municipal obligations 913 2 414 2 1,327 4 Asset-backed securities 1,219 60 — — 1,219 60 Collateralized mortgage obligations - government issued 442 1 2,865 31 3,307 32 Collateralized mortgage obligations - government-sponsored enterprises 19,558 56 1,682 16 21,240 72 $ 23,878 $ 123 $ 6,951 $ 59 $ 30,829 $ 182 As of December 31, 2015 Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (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 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 March 31, 2016 and December 31, 2015 . At March 31, 2016 , the Corporation held five held-to-maturity securities that were in an unrecognized loss position, respectively. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. There were four held-to-maturity securities that were in a continuous unrecognized loss position for twelve months or greater as of March 31, 2016 . 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 three months ended March 31, 2016 . A summary of unrecognized loss information for securities held-to-maturity, categorized by security type follows: As of March 31, 2016 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 $ 3 $ 1,000 $ 3 Municipal obligations 268 1 206 6 474 7 Collateralized mortgage obligations - government issued — — 605 1 605 1 Collateralized mortgage obligations - government-sponsored enterprises — — — — — — $ 268 $ 1 $ 1,811 $ 10 $ 2,079 $ 11 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 |
Loan and Lease Receivables, Imp
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses Loan and lease receivables consist of the following: March 31, December 31, (In Thousands) Commercial real estate Commercial real estate — owner occupied $ 174,286 $ 176,322 Commercial real estate — non-owner occupied 441,539 436,901 Construction and land development 179,778 160,404 Multi-family 84,004 80,254 1-4 family (1) 52,620 51,607 Total commercial real estate 932,227 905,488 Commercial and industrial (2) 461,573 473,592 Direct financing leases, net 31,617 31,093 Consumer and other Home equity and second mortgages 7,366 8,237 Other 18,510 16,319 Total consumer and other 25,876 24,556 Total gross loans and leases receivable 1,451,293 1,434,729 Less: Allowance for loan and lease losses 16,684 16,316 Deferred loan fees 1,010 1,062 Loans and leases receivable, net $ 1,433,599 $ 1,417,351 (1) Includes residential real estate loans held for sale totaling $1.7 million as of March 31, 2016 and $1.3 million as of December 31, 2015. (2) Includes guaranteed portion of SBA loans held for sale totaling $1.4 million as of December 31, 2015. No guaranteed portion of SBA loans were held for sale as of March 31, 2016. Loans transferred to third parties consist of the guaranteed portion of SBA loans as well as participation interests in other originated loans. The total principal amount of loans transferred during the three months ended March 31, 2016 and 2015 was $18.1 million and $15.8 million , respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, including the requirements specific to loan participations, and therefore all of the loans transferred during the three months ended March 31, 2016 and December 31, 2015 have been derecognized in the unaudited Consolidated Financial Statements. The Corporation has a continuing involvement in each of the agreements by way of relationship management and servicing the loans; however, there are no further obligations to the third-party participant required of the Corporation, other than standard representations and warranties related to sold amounts, that would preclude the application of sale accounting treatment. The guaranteed portion of SBA loans were transferred at their fair value and the related gain was recognized upon the transfer as non-interest income in the unaudited Consolidated Financial Statements. No gain or loss was recognized on participation interests in other originated loans as they were transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represents adequate compensation. The total amount of loan participations purchased on the Corporation’s Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 was $463,000 and $467,000 , respectively. The total amount of outstanding loans transferred to third parties as loan participations sold at March 31, 2016 and December 31, 2015 was $181.6 million and $169.2 million , respectively, all of which was treated as a sale and derecognized under the applicable accounting guidance 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; however, there are no further obligations of the Corporation, other than standard representations and warranties to the sold amount, that would preclude the application of sale accounting treatment. As of March 31, 2016 and December 31, 2015 , the total amount of the Corporation’s partial ownership of loans on the Corporation’s Consolidated Balance Sheets was $139.6 million and $136.8 million , respectively. As of March 31, 2016 , $1.6 million loans in this participation sold portfolio were considered impaired as compared to $1.8 million as of December 31, 2015 . 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 three months ended March 31, 2016 and March 31, 2015 was $7.2 million and $9.1 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 three months ended March 31, 2016 have been derecognized in the unaudited Consolidated Financial Statements. The Corporation has a continuing involvement in each of the transactions, including by way of relationship management and standard representations and warranties related to the sold amount; however, there are no further obligations of the Corporation that would 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. According to ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer , purchased credit-impaired loans exhibit 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. 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 March 31, 2016 and December 31, 2015 : March 31, December 31, (In Thousands) Contractually required payments $ 5,166 $ 5,291 Fair value of purchased credit impaired loans $ 3,160 $ 3,250 The following table presents a rollforward of the Corporation’s accretable yield as of March 31, 2016 and December 31, 2015 : As of and for the Three Months Ended March 31, 2016 As of and for the Year Ended December 31, 2015 (In Thousands) Accretable yield, beginning of period $ 414 $ 676 Accretion recognized in earnings (33 ) (50 ) Reclassification to nonaccretable difference for loans with changing cash flows (1) (9 ) (60 ) Changes in accretable yield for non-credit related changes in expected cash flows (2) 9 (152 ) Accretable yield, end of period $ 381 $ 414 (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. 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 March 31, 2016 and December 31, 2015 : Category As of March 31, 2016 I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 144,146 $ 14,184 $ 13,070 $ 2,886 $ 174,286 Commercial real estate — non-owner occupied 406,493 28,185 5,962 899 441,539 Construction and land development 165,735 6,215 3,127 4,701 179,778 Multi-family 83,487 517 — — 84,004 1-4 family (1) 43,432 4,104 1,786 3,298 52,620 Total commercial real estate 843,293 53,205 23,945 11,784 932,227 Commercial and industrial 384,103 27,028 43,721 6,721 461,573 Direct financing leases, net 30,195 964 458 — 31,617 Consumer and other: Home equity and second mortgages 6,118 766 139 343 7,366 Other 17,846 23 — 641 18,510 Total consumer and other 23,964 789 139 984 25,876 Total gross loans and leases receivable $ 1,281,555 $ 81,986 $ 68,263 $ 19,489 $ 1,451,293 Category as a % of total portfolio 88.31 % 5.65 % 4.70 % 1.34 % 100.00 % (1) Includes residential real estate loans held for sale totaling $1.7 million in Category I. 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. 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. Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers, or as other circumstances dictate. The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent definition, and are then applied to specific loan types based on the nature of the loan. Each risk rating is subjective and, depending on the size and nature of the credit, subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management. Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrower’s management team or the industry in which the borrower operates. Loans and leases in this category are not subject to additional monitoring procedures above and beyond what is required at the origination or renewal of the loan or lease. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers and continued review of such borrowers’ compliance with the terms of their respective agreements. Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends and collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by subcommittees of the Banks’ loan committees. Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Banks. Category III loans and leases generally exhibit undesirable characteristics such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and loan committees of the Banks on a monthly basis and the Banks’ Boards of Directors at each of their regularly scheduled meetings. Category IV — Loans and leases in this category are considered to be impaired. Impaired loans and leases have been placed on non-accrual as management has determined that it is unlikely that the Banks will receive the contractual principal and interest in accordance with the contractual terms of the agreement. Impaired loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually for impaired loans and leases. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded to reflect the magnitude of the impairment. Loans and leases in this category are monitored by management and loan committees of the Banks on a monthly basis and the Banks’ Boards of Directors at each of their regularly scheduled meetings. Utilizing regulatory classification terminology, the Corporation identified $33.9 million and $26.8 million of loans and leases as Substandard as of March 31, 2016 and December 31, 2015 , respectively. No loans were considered Special Mention, Doubtful or Loss as of either March 31, 2016 or December 31, 2015 . 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 March 31, 2016 and December 31, 2015 is as follows: As of March 31, 2016 30-59 60-89 Greater Total past due Current Total loans (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 171,469 $ 171,469 Non-owner occupied 234 354 — 588 440,689 441,277 Construction and land development 312 1,063 — 1,375 173,901 175,276 Multi-family — — — — 84,004 84,004 1-4 family — — — — 49,989 49,989 Commercial and industrial — — — — 454,855 454,855 Direct financing leases, net — — — — 31,617 31,617 Consumer and other: Home equity and second mortgages — — — — 7,076 7,076 Other — — — — 17,869 17,869 Total 546 1,417 — 1,963 1,431,469 1,433,432 Non-accruing loans and leases Commercial real estate: Owner occupied $ 465 $ — $ — $ 465 $ 2,352 $ 2,817 Non-owner occupied — — — — 262 262 Construction and land development — — 391 391 4,111 4,502 Multi-family — — — — — — 1-4 family — 741 945 1,686 945 2,631 Commercial and industrial — — 792 792 5,926 6,718 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — 290 290 Other — — 641 641 — 641 Total 465 741 2,769 3,975 13,886 17,861 Total loans and leases Commercial real estate: Owner occupied $ 465 $ — $ — $ 465 $ 173,821 $ 174,286 Non-owner occupied 234 354 — 588 440,951 441,539 Construction and land development 312 1,063 391 1,766 178,012 179,778 Multi-family — — — — 84,004 84,004 1-4 family — 741 945 1,686 50,934 52,620 Commercial and industrial — — 792 792 460,781 461,573 Direct financing leases, net — — — — 31,617 31,617 Consumer and other: Home equity and second mortgages — — — — 7,366 7,366 Other — — 641 641 17,869 18,510 Total $ 1,011 $ 2,158 $ 2,769 $ 5,938 $ 1,445,355 $ 1,451,293 Percent of portfolio 0.07 % 0.15 % 0.19 % 0.41 % 99.59 % 100.00 % 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 78 — — 78 48,918 48,996 Commercial and industrial — — — — 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 and 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 and 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 % The Corporation’s total impaired assets consisted of the following at March 31, 2016 and December 31, 2015 , respectively. March 31, December 31, (Dollars in Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 2,817 $ 2,907 Commercial real estate — non-owner occupied 262 1,678 Construction and land development 4,502 4,729 Multi-family — 2 1-4 family 2,631 2,611 Total non-accrual commercial real estate 10,212 11,927 Commercial and industrial 6,718 9,136 Direct financing leases, net — 38 Consumer and other: Home equity and second mortgages 290 542 Other 641 655 Total non-accrual consumer and other loans 931 1,197 Total non-accrual loans and leases 17,861 22,298 Foreclosed properties, net 1,677 1,677 Total non-performing assets 19,538 23,975 Performing troubled debt restructurings 1,628 1,735 Total impaired assets $ 21,166 $ 25,710 March 31, December 31, Total non-accrual loans and leases to gross loans and leases 1.23 % 1.55 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 1.34 1.67 Total non-performing assets to total assets 1.09 1.35 Allowance for loan and lease losses to gross loans and leases 1.15 1.14 Allowance for loan and lease losses to non-accrual loans and leases 93.41 73.17 As of March 31, 2016 and December 31, 2015 , $14.0 million and $16.2 million of the non-accrual loans were considered troubled debt restructurings, respectively. As of March 31, 2016 , there were no unfunded commitments associated with troubled debt restructured loans and leases. As of March 31, 2016 As of December 31, 2015 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 $ 1,163 3 $ 1,209 $ 1,188 Commercial real estate — non-owner occupied 5 1,150 899 5 1,150 904 Construction and land development 3 6,034 4,351 3 6,034 4,593 Multi-family — — — 1 184 2 1-4 family 15 2,035 1,840 15 2,035 1,869 Commercial and industrial 11 7,973 6,392 10 7,572 8,330 Consumer and other: Home equity and second mortgages 4 461 343 4 461 349 Other 1 2,076 641 1 2,076 655 Total 42 $ 20,938 $ 15,629 42 $ 20,721 $ 17,890 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 March 31, 2016 and December 31, 2015 , the Corporation’s troubled debt restructurings grouped by type of concession were as follows: As of March 31, 2016 As of December 31, 2015 Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in Thousands) Commercial real estate Extension of term 1 $ 20 1 $ 24 Interest rate concession 1 54 1 55 Combination of extension and interest rate concession 24 8,179 25 8,477 Commercial and industrial Combination of extension and interest rate concession 11 6,392 10 8,330 Consumer and other Extension of term 1 641 1 655 Combination of extension and interest rate concession 4 343 4 349 Total 42 $ 15,629 42 $ 17,890 There were no loans and leases modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the three months ended March 31, 2016 . The following represents additional information regarding the Corporation’s impaired loans and leases by class: Impaired Loans and Leases As of and for the Three Months Ended March 31, 2016 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 $ 2,255 $ 2,255 $ — $ 2,140 $ 35 $ — $ 35 Non-owner occupied 899 939 — 1,843 6 — 6 Construction and land development 4,701 7,372 — 4,935 34 — 34 Multi-family — — — 1 1 134 (133 ) 1-4 family 2,442 2,504 — 2,658 30 — 30 Commercial and industrial 481 481 — 106 22 18 4 Direct financing leases, net — — — 23 — — — Consumer and other: Home equity and second mortgages 244 244 — 493 2 — 2 Other 641 1,307 — 649 20 — 20 Total 11,663 15,102 — 12,848 150 152 (2 ) With impairment reserve recorded: Commercial real estate: Owner occupied $ 631 $ 631 $ 18 $ 628 $ 9 $ — $ 9 Non-owner occupied — — — — — — — Construction and land development — — — — — — — Multi-family — — — — — — — 1-4 family 856 862 126 851 7 — 7 Commercial and industrial 6,240 6,240 730 6,224 143 — 143 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 99 99 23 98 2 — 2 Other — — — — — — — Total 7,826 7,832 897 7,801 161 — 161 Total: Commercial real estate: Owner occupied $ 2,886 $ 2,886 $ 18 $ 2,768 $ 44 $ — $ 44 Non-owner occupied 899 939 — 1,843 6 — 6 Construction and land development 4,701 7,372 — 4,935 34 — 34 Multi-family — — — 1 1 134 (133 ) 1-4 family 3,298 3,366 126 3,509 37 — 37 Commercial and industrial 6,721 6,721 730 6,330 165 18 147 Direct financing leases, net — — — 23 — — — Consumer and other: Home equity and second mortgages 343 343 23 591 4 — 4 Other 641 1,307 — 649 20 — 20 Grand total $ 19,489 $ 22,934 $ 897 $ 20,649 $ 311 $ 152 $ 159 (1) Average recorded investment is calculated primarily using daily average balances. Impaired Loans and Leases As of and for the Year Ended December 31, 2015 Recorded Unpaid Impairment Average (1) Foregone Interest Net (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. The difference between the loans and leases recorded investment and the unpaid principal balance of $3.4 million and $3.9 million as of March 31, 2016 and December 31, 2015 represents partial charge-offs resulting from confirmed losses due to the value of the collateral securing the loans and leases being below the carrying values of the loans and leases. Impaired loans and leases also included $1.6 million and $1.7 million of loans as of March 31, 2016 and December 31, 2015 that were performing troubled debt restructurings, and thus, while not on non-accrual, were reported as impaired, due to the concession in terms. When a loan is placed on non-accrual, interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. Cash payments collected on non-accrual loans are first applied to principal. Foregone interest represents the interest that was contractually due on the note but not received or recorded. To the extent the amount of principal on a non-accrual note is fully collected and additional cash is received, the Corporation will recognize interest income. To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the portfolio by segments and risk ratings. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. A summary of the activity in the allowance for loan and lease losses by portfolio segment is as follows: As of and for the Three Months Ended March 31, 2016 Commercial real estate Commercial and industrial loans and leases Consumer and other Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 11,220 $ 4,387 $ 709 $ 16,316 Charge-offs (41 ) (196 ) (7 ) (244 ) Recoveries 84 — 3 87 Provision 217 297 11 525 Ending balance $ 11,480 $ 4,488 $ 716 $ 16,684 Ending balance: individually evaluated for impairment $ 144 $ 730 $ 23 $ 897 Ending balance: collectively evaluated for impairment $ 11,336 $ 3,758 $ 693 $ 15,787 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and lease receivables: Ending balance, gross $ 932,227 $ 493,190 $ 25,876 $ 1,451,293 Ending balance: individually evaluated for impairment $ 9,106 $ 6,481 $ 793 $ 16,380 Ending balance: collectively evaluated for impairment $ 920,443 $ 486,468 $ 24,892 $ 1,431,803 Ending balance: loans acquired with deteriorated credit quality $ 2,678 $ 241 $ 191 $ 3,110 Allowance as % of gross loans 1.23 % 0.91 % 2.77 % 1.15 % 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 $ 23,495 $ 1,410,889 Ending balance: loans acquired with deteriorated credit quality $ 2,742 $ 246 $ 193 $ 3,181 Allowance as % of gross loans 1.24 % 0.87 % 2.89 % 1.14 % |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of deposits at March 31, 2016 and December 31, 2015 was as follows. Average balances represent year-to-date averages. March 31, 2016 December 31, 2015 Balance Average balance Weighted average rate Balance Average balance Weighted average rate (Dollars in Thousands) Non-interest-bearing transaction accounts $ 236,662 $ 228,294 — % $ 231,199 $ 211,945 — % Interest-bearing transaction accounts 154,351 162,793 0.22 165,921 125,558 0.24 Money market accounts 646,336 646,362 0.51 612,642 602,842 0.55 Certificates of deposit 68,284 73,163 0.80 79,986 106,177 0.78 Wholesale deposits 475,955 497,274 1.60 487,483 450,460 1.43 Total deposits $ 1,581,588 $ 1,607,886 0.76 $ 1,577,231 $ 1,496,982 0.73 |
FHLB Advances, Other Borrowings
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable | FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable The composition of borrowed funds at March 31, 2016 and December 31, 2015 was as follows. Average balances represent year-to-date averages. March 31, 2016 December 31, 2015 Balance Average balance Weighted average rate Balance Average balance Weighted average rate (Dollars in Thousands) Federal funds purchased $ — $ — — % $ — $ 237 0.86 % FHLB advances and other borrowings 8,646 9,033 2.00 9,790 15,457 1.14 Senior line of credit 3,910 3,064 3.22 2,510 1,619 3.18 Subordinated notes payable 22,455 22,446 7.14 22,440 22,410 7.14 Junior subordinated notes 9,993 9,991 11.09 9,990 9,982 11.14 $ 45,004 $ 44,534 6.75 $ 44,730 $ 49,705 5.94 Short-term borrowings $ 6,910 $ 7,010 Long-term borrowings 38,094 37,720 $ 45,004 $ 44,730 As of March 31, 2016, the Corporation was in compliance with its debt covenants under its third party secured senior line of credit. Per the promissory note dated February 19, 2016, the Corporation pays a commitment fee on this senior line of credit. During both the three months ended March 31, 2016 and 2015, the Corporation incurred additional interest expense due to this fee of $3,000 . |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk such as nonperformance risk in liability fair values and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs, other than quoted prices included with Level 1, that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Level 3 inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Using March 31, 2016 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: Municipal obligations $ — $ 5,194 $ — $ 5,194 Asset backed securities — 1,219 — 1,219 U.S. Government agency obligations - government-sponsored enterprises — 8,067 — 8,067 Collateralized mortgage obligations - government issued — 40,381 — 40,381 Collateralized mortgage obligations - government-sponsored enterprises — 85,962 — 85,962 Interest rate swaps — 1,139 — 1,139 Liabilities: Interest rate swaps $ — $ 1,139 $ — $ 1,139 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 For assets and liabilities measured at fair value on a recurring basis, there were no transfers between the levels during the three months ended March 31, 2016 or the year ended December 31, 2015 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: Balance at Fair Value Measurements Using Total Gains (Losses) March 31, Level 1 Level 2 Level 3 (In Thousands) Impaired loans $ 14,314 $ — $ 12,601 $ 1,713 $ — Foreclosed properties 1,677 — 1,677 — — Loan servicing rights 1,692 — — 1,692 — Balance at Fair Value Measurements Using Total Gains (Losses) December 31, 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 — Impaired loans were written down to the fair value of their underlying collateral less costs to sell of $14.3 million and $17.8 million at March 31, 2016 and December 31, 2015 , respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value. Valuation techniques consistent with the market approach, income approach, or cost approach were used to measure fair value and primarily included observable inputs for the individual impaired loans being evaluated such as current appraisals, recent sales of similar assets or other observable market data, and are reflected within Level 2 of the hierarchy. In cases where an input is unobservable, specifically discounts applied to appraisal values to adjust such values to current market conditions or to reflect net realizable value, the impaired loan balance is reflected within Level 3 of the hierarchy. The quantification of unobservable inputs for Level 3 impaired loan values range from 10% - 93% . The weighted average of those unobservable inputs as of the measurement date of March 31, 2016 was 29% . 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 non-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 March 31, 2016 and December 31, 2015 , the estimated fair value of the Corporation’s loan servicing asset was $1.7 million and $1.6 million , 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 a current appraisal, or Level 3 inputs based upon assumptions specific to the individual property or equipment. Level 3 inputs typically include unobservable inputs such as management-applied discounts used to further reduce values to a net realizable value and may be used in situations when observable inputs become stale. Foreclosed property fair value inputs may transition to Level 1 upon receipt of an accepted offer for the sale of the related foreclosed property. As of March 31, 2016 and 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, there were no impairment losses recognized for the three months ended March 31, 2016 . The activity of the Corporation’s foreclosed properties is summarized as follows: As of and for the Three Months Ended March 31, 2016 As of and for the Year Ended December 31, 2015 (In Thousands) Foreclosed properties at the beginning of the period $ 1,677 $ 1,693 Foreclosed properties acquired in acquisition, at fair value — — Loans transferred to foreclosed properties, at lower of cost or fair value — 341 Proceeds from sale of foreclosed properties — (528 ) Net gain on sale of foreclosed properties — 207 Impairment valuation — (36 ) Foreclosed properties at the end of the period $ 1,677 $ 1,677 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: March 31, 2016 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 104,854 $ 104,858 $ 89,259 $ 4,699 $ 10,900 Securities available-for-sale 140,823 140,823 — 140,823 — Securities held-to-maturity 36,485 37,213 — 37,213 — Loans held for sale 1,697 1,697 — 1,697 — Loans and lease receivables, net 1,431,902 1,460,700 — 12,601 1,448,099 Federal Home Loan Bank and Federal Reserve Bank stock 2,734 2,734 — — 2,734 Cash surrender value of life insurance 28,541 28,541 28,541 — — Accrued interest receivable 4,789 4,789 4,789 — — Interest rate swaps 1,139 1,139 — 1,139 — Financial liabilities: Deposits $ 1,581,588 $ 1,586,447 $ 1,037,349 $ 549,098 $ — Federal Home Loan Bank and other borrowings 35,011 35,841 — 35,841 — Junior subordinated notes 9,993 6,613 — — 6,613 Interest rate swaps 1,139 1,139 — 1,139 — Accrued interest payable 1,937 1,937 1,937 — — Off-balance-sheet items: Standby letters of credit 65 65 — — 65 December 31, 2015 Carrying Amount 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 and Federal Reserve 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 34,740 35,353 — 35,353 — Junior subordinated notes 9,990 6,614 — — 6,614 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 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. As of March 31, 2016 and December 31, 2015 , the Corporation held $10.9 million and $9.1 million , respectively, of commercial paper. The fair value of commercial paper is classified as a Level 3 input due to the lack of available independent pricing sources. The carrying value of brokered certificates of deposit purchased is equivalent to the purchase price of the instruments as the Corporation has not elected a fair value option for these instruments. The fair value of brokered certificates of deposits purchased is based on the discounted value of contractual cash flows using a discount rate reflective of rates currently offered for deposits of similar remaining maturities. As of March 31, 2016 and December 31, 2015 , the Corporation held $4.7 million and $4.5 million , respectively, of brokered certificates of deposits. Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. The fair value measurements are subject to independent verification to another pricing source on a quarterly basis to review for reasonableness. Any significant differences in pricing 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 and the FRB at their carrying amount of $100 per share. Cash Surrender Value of Life Insurance: The carrying amount of the cash surrender value of life insurance approximates its fair value as the carrying value represents the current settlement amount. Deposits: The fair value of deposits with no stated maturity, such as demand deposits and money market accounts, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the intangible value that results from the funding provided by deposit liabilities compared to borrowing funds in the market. Borrowed Funds: Market rates currently available to the Corporation and Banks for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. 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. Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and are not considered in the estimates. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not designated as accounting hedge relationships and are marked to market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value primarily offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers, which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considers the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees. At March 31, 2016 , the aggregate amortizing notional value of interest rate swaps with various commercial borrowers was 23.3 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 August, 2018 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 $1.1 million and are 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 the commercial borrower to set off amounts due against the related commercial loan. As of March 31, 2016 , no interest rate swaps were in default and therefore all values for the commercial borrower swaps are recorded on a gross basis within the Corporation’s financial position. At March 31, 2016 , the aggregate amortizing notional value of interest rate swaps with dealer counterparties was also 23.3 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 August, 2018 through February, 2023 . Dealer counterparty swaps are subject to master netting agreements among the contracts within each of the Banks and are reported on the Consolidated Balance Sheets as a net derivative liability of $1.1 million , included in accrued interest payable and other liabilities as of March 31, 2016 . The gross amount of dealer counterparty swaps was also $1.1 million as no right of offset existed with the dealer counterparty swaps as of March 31, 2016 . The table below provides information about the location and fair value of the Corporation’s derivative instruments as of March 31, 2016 and December 31, 2015 . 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 March 31, 2016 Accrued interest receivable and other assets $ 1,139 Accrued interest payable and other liabilities $ 1,139 December 31, 2015 Accrued interest receivable and other assets $ 552 Accrued interest payable and other liabilities $ 552 No derivative instruments held by the Corporation for the three months ended March 31, 2016 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 three months ended March 31, 2016 and 2015 had an insignificant impact on the unaudited Consolidated Statements of Income. |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital | Regulatory Capital 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 regularly reviews and updates when appropriate its Capital and Liquidity Action Plan (the “Capital Plan”), which is designed to help ensure appropriate capital adequacy, to plan for future capital needs and to ensure that the Corporation serves as a source of financial strength to the Banks. The Corporation’s and the Banks’ Boards of Directors and management teams adhere to the appropriate regulatory guidelines on decisions which affect their respective capital positions, including but not limited to, decisions relating to the payment of dividends and increasing indebtedness. As a bank holding company, the Corporation’s ability to pay dividends is affected by the policies and enforcement powers of the Board of Governors of the Federal Reserve system (the “Federal Reserve”). Federal Reserve guidance urges companies to strongly consider eliminating, deferring or significantly reducing dividends if: (i) net income available to common shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividend; (ii) the prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current prospective financial condition; or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital ratios. Management intends, when appropriate under regulatory guidelines, to consult with the Federal Reserve Bank of Chicago and provide it with information on the Corporation’s then-current and prospective earnings and capital position in advance of declaring any cash dividends. As a Wisconsin corporation, the Corporation is subject to the limitations of the Wisconsin Business Corporation Law, which prohibit the Corporation from paying dividends if such payment would: (i) render the Corporation unable to pay its debts as they become due in the usual course of business, or (ii) result in the Corporation’s assets being less than the sum of its total liabilities plus the amount needed to satisfy the preferential rights upon dissolution of any stockholders with preferential rights superior to those stockholders receiving the dividend. 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 March 31, 2016 , 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 March 31, 2016 , 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 March 31, 2016 and December 31, 2015 , respectively: Actual Minimum Required for Capital Adequacy Purposes Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of March 31, 2016 Total capital (to risk-weighted assets) Consolidated $ 192,670 11.24 % $ 137,131 8.00 % N/A N/A First Business Bank 145,732 11.43 102,002 8.00 $ 127,502 10.00 % First Business Bank — Milwaukee 21,170 11.74 14,425 8.00 18,032 10.00 Alterra Bank 31,464 12.37 20,345 8.00 25,432 10.00 Tier 1 capital (to risk-weighted assets) Consolidated $ 153,531 8.96 % $ 102,848 6.00 % N/A N/A First Business Bank 132,943 10.43 76,501 6.00 $ 102,002 8.00 % First Business Bank — Milwaukee 19,350 10.73 10,819 6.00 14,425 8.00 Alterra Bank 29,390 11.56 15,259 6.00 20,345 8.00 Common equity tier 1 capital (to risk-weighted assets) Consolidated $ 143,531 8.37 % $ 77,136 4.50 % N/A N/A First Business Bank 132,943 10.43 57,376 4.50 $ 82,877 6.50 % First Business Bank — Milwaukee 19,350 10.73 8,114 4.50 11,721 6.50 Alterra Bank 29,390 11.56 11,444 4.50 16,530 6.50 Tier 1 capital (to average assets) Consolidated $ 153,531 8.44 % $ 72,805 4.00 % N/A N/A First Business Bank 132,943 10.30 51,647 4.00 $ 64,559 5.00 % First Business Bank — Milwaukee 19,350 7.38 10,485 4.00 13,106 5.00 Alterra Bank 29,390 9.45 12,440 4.00 15,551 5.00 Actual Minimum Required for Capital Adequacy Purposes Minimum Required to Be Well 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 |
Nature of Operations and Summ19
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s Consolidated Financial Statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2015 . |
Principles of Consolidation | The unaudited Consolidated Financial Statements include the accounts of the Corporation and its wholly owned subsidiaries. In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 810, the Corporation’s ownership interest in FBFS Statutory Trust II (“Trust II”) has not been consolidated into the financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Management of the Corporation is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of foreclosed property, lease residuals, property under operating leases, securities, income taxes and the level of the allowance for loan and lease losses. |
Reclassification | Certain amounts in prior periods may have been reclassified to conform to the current presentation. |
Subsequent Events | Subsequent events have been evaluated through the date of the issuance of the Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The 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. The Corporation adopted the standard during the first quarter of 2016, as required, with no material impact on its results of operations, financial position, or liquidity. In April 2015, the FASB issued ASU 2015-03, “ Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The ASU requires that debt issuance costs related to recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Prior to this ASU, debt issuance costs were required to be presented as an asset. The ASU is effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. In August 2015, the FASB expanded this amendment to include SEC staff views related to debt issuance costs associated with line-of-credit arrangements. The SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This amendment is also effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The Corporation adopted the standards during the first quarter of 2016, as required, and reclassified $792,000 and $810,000 of debt issuance costs from other assets and presented as a deduction from the debt liability as of March 31, 2016 and December 31, 2015, respectively. The adoption of the standards did not have a material impact on the Corporation’s consolidated results of operations, financial position, or liquidity. 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. In August 2015, the FASB issued ASU No. 2015-14, which defers 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. In March 2016, the FASB issued ASU No. 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net.” The ASU intends to improve the operability and understandability of the implementation guidance of ASU 2014-09 on principal versus agent considerations. The Corporation intends to adopt the accounting standards during the first quarter of 2018, as required, and is currently evaluating the impact on its results of operations, financial position, and 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 adopted the standard during the first quarter of 2016, as required, with no material impact on its 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. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The ASU intends to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities and disclosing key information about leasing arrangements. The ASU will require lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessees’ obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Corporation intends to adopt the accounting standard during the first quarter of 2019, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity. |
Earnings Per Common Share (Poli
Earnings Per Common Share (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per 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. |
Share-Based Compensation (Polic
Share-Based Compensation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Option and Incentive Plans | The Corporation adopted the 2012 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2012. The Plan is administered by the Compensation Committee of the Board of Directors of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options (together, “Stock Options”), restricted stock, restricted stock units, dividend equivalent units, and any other type of award permitted by the Plan. As of March 31, 2016 , 310,584 shares were available for future grants under the Plan. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the Plan. The Corporation may issue new shares and shares from treasury for shares delivered under the Plan. Stock Options The Corporation may grant Stock Options to senior executives and other employees under the Plan. Stock Options generally have an exercise price that is equal to the fair value of the common shares on the date the option is awarded. Stock Options granted under the Plan are subject to graded vesting, generally ranging from 4 years to 8 years , and have a contractual term of 10 years . For any new awards issued, compensation expense is recognized over the requisite service period for the entire award on a straight-line basis. No Stock Options have been granted since the Corporation became a reporting company under the Securities Exchange Act of 1934, as amended, and no Stock Options have been modified, repurchased or canceled since such time. For that reason, no stock-based compensation expense related to Stock Options was recognized in the Consolidated Financial Statements for the three months ended March 31, 2016 and 2015 . The benefits of tax deductions as a result of disqualifying dispositions upon exercise of stock options are recognized as a financing cash flow. 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 typically subject to a vesting period. 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. |
Loan and Lease Receivables, I22
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans and Leases Receivable, Allowance for Loan Losses | To determine the level and composition of the allowance for loan and lease losses, the Corporation breaks out the portfolio by segments and risk ratings. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. |
Fair Value Disclosures (Policie
Fair Value Disclosures (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk such as nonperformance risk in liability fair values and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs, other than quoted prices included with Level 1, that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Level 3 inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Impaired loans were written down to the fair value of their underlying collateral less costs to sell of $14.3 million and $17.8 million at March 31, 2016 and December 31, 2015 , respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value. Valuation techniques consistent with the market approach, income approach, or cost approach were used to measure fair value and primarily included observable inputs for the individual impaired loans being evaluated such as current appraisals, recent sales of similar assets or other observable market data, and are reflected within Level 2 of the hierarchy. In cases where an input is unobservable, specifically discounts applied to appraisal values to adjust such values to current market conditions or to reflect net realizable value, the impaired loan balance is reflected within Level 3 of the hierarchy. The quantification of unobservable inputs for Level 3 impaired loan values range from 10% - 93% . The weighted average of those unobservable inputs as of the measurement date of March 31, 2016 was 29% . 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 non-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 March 31, 2016 and December 31, 2015 , the estimated fair value of the Corporation’s loan servicing asset was $1.7 million and $1.6 million , 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 a current appraisal, or Level 3 inputs based upon assumptions specific to the individual property or equipment. Level 3 inputs typically include unobservable inputs such as management-applied discounts used to further reduce values to a net realizable value and may be used in situations when observable inputs become stale. Foreclosed property fair value inputs may transition to Level 1 upon receipt of an accepted offer for the sale of the related foreclosed property. As of March 31, 2016 and 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, there were no impairment losses recognized for the three months ended March 31, 2016 . |
Fair Value Measurement | 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. As of March 31, 2016 and December 31, 2015 , the Corporation held $10.9 million and $9.1 million , respectively, of commercial paper. The fair value of commercial paper is classified as a Level 3 input due to the lack of available independent pricing sources. The carrying value of brokered certificates of deposit purchased is equivalent to the purchase price of the instruments as the Corporation has not elected a fair value option for these instruments. The fair value of brokered certificates of deposits purchased is based on the discounted value of contractual cash flows using a discount rate reflective of rates currently offered for deposits of similar remaining maturities. As of March 31, 2016 and December 31, 2015 , the Corporation held $4.7 million and $4.5 million , respectively, of brokered certificates of deposits. Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. The fair value measurements are subject to independent verification to another pricing source on a quarterly basis to review for reasonableness. Any significant differences in pricing 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 and the FRB at their carrying amount of $100 per share. Cash Surrender Value of Life Insurance: The carrying amount of the cash surrender value of life insurance approximates its fair value as the carrying value represents the current settlement amount. Deposits: The fair value of deposits with no stated maturity, such as demand deposits and money market accounts, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the intangible value that results from the funding provided by deposit liabilities compared to borrowing funds in the market. Borrowed Funds: Market rates currently available to the Corporation and Banks for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. 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. Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and are not considered in the estimates. |
Derivative Financial Instrume24
Derivative Financial Instruments (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not designated as accounting hedge relationships and are marked to market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value primarily offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers, which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considers the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the Three Months Ended March 31, 2016 2015 (Dollars in Thousands, Except Per Share Data) Basic earnings per common share Net income $ 4,547 $ 4,192 Less: earnings allocated to participating securities 70 73 Basic earnings allocated to common shareholders $ 4,477 $ 4,119 Weighted-average common shares outstanding, excluding participating securities 8,565,050 8,525,127 Basic earnings per common share $ 0.52 $ 0.48 Diluted earnings per common share Earnings allocated to common shareholders, diluted $ 4,477 $ 4,119 Weighted-average common shares outstanding, excluding participating securities 8,565,050 8,525,127 Dilutive effect of share-based awards — 4,531 Weighted-average diluted common shares outstanding, excluding participating securities 8,565,050 8,529,658 Diluted earnings per common share $ 0.52 $ 0.48 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted share activity for the year ended December 31, 2015 and the three months ended March 31, 2016 was as follows: Number of Restricted Shares Weighted Average Grant-Date Fair Value Nonvested balance as of December 31, 2014 154,998 $ 16.97 Granted 53,790 22.52 Vested (64,874 ) 15.23 Forfeited (8,443 ) 15.03 Nonvested balance as of December 31, 2015 135,471 20.13 Granted 2,905 21.68 Vested (2,246 ) 21.35 Forfeited (2,044 ) 14.50 Nonvested balance as of March 31, 2016 134,086 $ 20.23 |
Schedule of Share-based Compensation Expense | For the three months ended March 31, 2016 and 2015 , share-based compensation expense related to restricted stock included in the Consolidated Statements of Income was as follows: For the Three Months Ended March 31, 2016 2015 (In Thousands) Share-based compensation expense $ 296 $ 234 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 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 $ 34 $ (14 ) $ 8,067 Municipal obligations 5,176 22 (4 ) 5,194 Asset-backed securities 1,279 — (60 ) 1,219 Collateralized mortgage obligations - government issued 39,577 836 (32 ) 40,381 Collateralized mortgage obligations - government-sponsored enterprises 85,525 509 (72 ) 85,962 $ 139,604 $ 1,401 $ (182 ) $ 140,823 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 |
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 March 31, 2016 Amortized cost Gross Gross Estimated (In Thousands) Held-to-maturity: U.S. Government agency obligations - government-sponsored enterprises $ 1,496 $ 6 $ (3 ) $ 1,499 Municipal obligations 16,026 443 (7 ) 16,462 Collateralized mortgage obligations - government issued 11,176 144 (1 ) 11,319 Collateralized mortgage obligations - government-sponsored enterprises 7,787 146 — 7,933 $ 36,485 $ 739 $ (11 ) $ 37,213 As of December 31, 2015 Amortized cost Gross Gross Estimated fair value (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 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 |
Investments Classified by Contractual Maturity | The amortized cost and estimated fair value of securities by contractual maturity at March 31, 2016 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations without call or prepayment penalties. As of March 31, 2016 Available-for-Sale Held-to-Maturity Amortized cost Estimated fair value Amortized cost Estimated (In Thousands) Due in one year or less $ 1,000 $ 1,000 $ — $ — Due in one year through five years 14,019 14,089 4,794 4,847 Due in five through ten years 91,048 91,897 12,727 13,113 Due in over ten years 33,537 33,837 18,964 19,253 $ 139,604 $ 140,823 $ 36,485 $ 37,213 |
Schedule of Unrealized Loss on Investments | A summary of unrealized loss information for securities available-for-sale, categorized by security type follows: As of March 31, 2016 Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (In Thousands) Available-for-sale: U.S. Government agency obligations - government-sponsored enterprises $ 1,746 $ 4 $ 1,990 $ 10 $ 3,736 $ 14 Municipal obligations 913 2 414 2 1,327 4 Asset-backed securities 1,219 60 — — 1,219 60 Collateralized mortgage obligations - government issued 442 1 2,865 31 3,307 32 Collateralized mortgage obligations - government-sponsored enterprises 19,558 56 1,682 16 21,240 72 $ 23,878 $ 123 $ 6,951 $ 59 $ 30,829 $ 182 As of December 31, 2015 Less than 12 months 12 months or longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses (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 A summary of unrecognized loss information for securities held-to-maturity, categorized by security type follows: As of March 31, 2016 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 $ 3 $ 1,000 $ 3 Municipal obligations 268 1 206 6 474 7 Collateralized mortgage obligations - government issued — — 605 1 605 1 Collateralized mortgage obligations - government-sponsored enterprises — — — — — — $ 268 $ 1 $ 1,811 $ 10 $ 2,079 $ 11 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 |
Loan and Lease Receivables, I28
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loan Composition Schedule | Loan and lease receivables consist of the following: March 31, December 31, (In Thousands) Commercial real estate Commercial real estate — owner occupied $ 174,286 $ 176,322 Commercial real estate — non-owner occupied 441,539 436,901 Construction and land development 179,778 160,404 Multi-family 84,004 80,254 1-4 family (1) 52,620 51,607 Total commercial real estate 932,227 905,488 Commercial and industrial (2) 461,573 473,592 Direct financing leases, net 31,617 31,093 Consumer and other Home equity and second mortgages 7,366 8,237 Other 18,510 16,319 Total consumer and other 25,876 24,556 Total gross loans and leases receivable 1,451,293 1,434,729 Less: Allowance for loan and lease losses 16,684 16,316 Deferred loan fees 1,010 1,062 Loans and leases receivable, net $ 1,433,599 $ 1,417,351 (1) Includes residential real estate loans held for sale totaling $1.7 million as of March 31, 2016 and $1.3 million as of December 31, 2015. (2) Includes guaranteed portion of SBA loans held for sale totaling $1.4 million as of December 31, 2015. No guaranteed portion of SBA loans were held for sale as of March 31, 2016. |
Schedule of Fair Value of Credit Impaired Loans Acquired | The following table reflects the contractually required payments receivable and fair value of the Corporation’s purchased credit impaired loans as of March 31, 2016 and December 31, 2015 : March 31, December 31, (In Thousands) Contractually required payments $ 5,166 $ 5,291 Fair value of purchased credit impaired loans $ 3,160 $ 3,250 |
Accretable Yield Rollforward | The following table presents a rollforward of the Corporation’s accretable yield as of March 31, 2016 and December 31, 2015 : As of and for the Three Months Ended March 31, 2016 As of and for the Year Ended December 31, 2015 (In Thousands) Accretable yield, beginning of period $ 414 $ 676 Accretion recognized in earnings (33 ) (50 ) Reclassification to nonaccretable difference for loans with changing cash flows (1) (9 ) (60 ) Changes in accretable yield for non-credit related changes in expected cash flows (2) 9 (152 ) Accretable yield, end of period $ 381 $ 414 |
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 March 31, 2016 and December 31, 2015 : Category As of March 31, 2016 I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 144,146 $ 14,184 $ 13,070 $ 2,886 $ 174,286 Commercial real estate — non-owner occupied 406,493 28,185 5,962 899 441,539 Construction and land development 165,735 6,215 3,127 4,701 179,778 Multi-family 83,487 517 — — 84,004 1-4 family (1) 43,432 4,104 1,786 3,298 52,620 Total commercial real estate 843,293 53,205 23,945 11,784 932,227 Commercial and industrial 384,103 27,028 43,721 6,721 461,573 Direct financing leases, net 30,195 964 458 — 31,617 Consumer and other: Home equity and second mortgages 6,118 766 139 343 7,366 Other 17,846 23 — 641 18,510 Total consumer and other 23,964 789 139 984 25,876 Total gross loans and leases receivable $ 1,281,555 $ 81,986 $ 68,263 $ 19,489 $ 1,451,293 Category as a % of total portfolio 88.31 % 5.65 % 4.70 % 1.34 % 100.00 % (1) Includes residential real estate loans held for sale totaling $1.7 million in Category I. 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 % |
Past Due Financing Receivables | The delinquency aging of the loan and lease portfolio by class of receivable as of March 31, 2016 and December 31, 2015 is as follows: As of March 31, 2016 30-59 60-89 Greater Total past due Current Total loans (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 171,469 $ 171,469 Non-owner occupied 234 354 — 588 440,689 441,277 Construction and land development 312 1,063 — 1,375 173,901 175,276 Multi-family — — — — 84,004 84,004 1-4 family — — — — 49,989 49,989 Commercial and industrial — — — — 454,855 454,855 Direct financing leases, net — — — — 31,617 31,617 Consumer and other: Home equity and second mortgages — — — — 7,076 7,076 Other — — — — 17,869 17,869 Total 546 1,417 — 1,963 1,431,469 1,433,432 Non-accruing loans and leases Commercial real estate: Owner occupied $ 465 $ — $ — $ 465 $ 2,352 $ 2,817 Non-owner occupied — — — — 262 262 Construction and land development — — 391 391 4,111 4,502 Multi-family — — — — — — 1-4 family — 741 945 1,686 945 2,631 Commercial and industrial — — 792 792 5,926 6,718 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — 290 290 Other — — 641 641 — 641 Total 465 741 2,769 3,975 13,886 17,861 Total loans and leases Commercial real estate: Owner occupied $ 465 $ — $ — $ 465 $ 173,821 $ 174,286 Non-owner occupied 234 354 — 588 440,951 441,539 Construction and land development 312 1,063 391 1,766 178,012 179,778 Multi-family — — — — 84,004 84,004 1-4 family — 741 945 1,686 50,934 52,620 Commercial and industrial — — 792 792 460,781 461,573 Direct financing leases, net — — — — 31,617 31,617 Consumer and other: Home equity and second mortgages — — — — 7,366 7,366 Other — — 641 641 17,869 18,510 Total $ 1,011 $ 2,158 $ 2,769 $ 5,938 $ 1,445,355 $ 1,451,293 Percent of portfolio 0.07 % 0.15 % 0.19 % 0.41 % 99.59 % 100.00 % 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 78 — — 78 48,918 48,996 Commercial and industrial — — — — 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 and 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 and 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 % |
Schedule of Financing Receivables, Non Accrual Status | The Corporation’s total impaired assets consisted of the following at March 31, 2016 and December 31, 2015 , respectively. March 31, December 31, (Dollars in Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 2,817 $ 2,907 Commercial real estate — non-owner occupied 262 1,678 Construction and land development 4,502 4,729 Multi-family — 2 1-4 family 2,631 2,611 Total non-accrual commercial real estate 10,212 11,927 Commercial and industrial 6,718 9,136 Direct financing leases, net — 38 Consumer and other: Home equity and second mortgages 290 542 Other 641 655 Total non-accrual consumer and other loans 931 1,197 Total non-accrual loans and leases 17,861 22,298 Foreclosed properties, net 1,677 1,677 Total non-performing assets 19,538 23,975 Performing troubled debt restructurings 1,628 1,735 Total impaired assets $ 21,166 $ 25,710 March 31, December 31, Total non-accrual loans and leases to gross loans and leases 1.23 % 1.55 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 1.34 1.67 Total non-performing assets to total assets 1.09 1.35 Allowance for loan and lease losses to gross loans and leases 1.15 1.14 Allowance for loan and lease losses to non-accrual loans and leases 93.41 73.17 |
Troubled Debt Restructurings on Financing Receivables | As of March 31, 2016 As of December 31, 2015 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 $ 1,163 3 $ 1,209 $ 1,188 Commercial real estate — non-owner occupied 5 1,150 899 5 1,150 904 Construction and land development 3 6,034 4,351 3 6,034 4,593 Multi-family — — — 1 184 2 1-4 family 15 2,035 1,840 15 2,035 1,869 Commercial and industrial 11 7,973 6,392 10 7,572 8,330 Consumer and other: Home equity and second mortgages 4 461 343 4 461 349 Other 1 2,076 641 1 2,076 655 Total 42 $ 20,938 $ 15,629 42 $ 20,721 $ 17,890 |
Troubled Debt Restructurings by Modification Type | As of March 31, 2016 and December 31, 2015 , the Corporation’s troubled debt restructurings grouped by type of concession were as follows: As of March 31, 2016 As of December 31, 2015 Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in Thousands) Commercial real estate Extension of term 1 $ 20 1 $ 24 Interest rate concession 1 54 1 55 Combination of extension and interest rate concession 24 8,179 25 8,477 Commercial and industrial Combination of extension and interest rate concession 11 6,392 10 8,330 Consumer and other Extension of term 1 641 1 655 Combination of extension and interest rate concession 4 343 4 349 Total 42 $ 15,629 42 $ 17,890 |
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 Three Months Ended March 31, 2016 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 $ 2,255 $ 2,255 $ — $ 2,140 $ 35 $ — $ 35 Non-owner occupied 899 939 — 1,843 6 — 6 Construction and land development 4,701 7,372 — 4,935 34 — 34 Multi-family — — — 1 1 134 (133 ) 1-4 family 2,442 2,504 — 2,658 30 — 30 Commercial and industrial 481 481 — 106 22 18 4 Direct financing leases, net — — — 23 — — — Consumer and other: Home equity and second mortgages 244 244 — 493 2 — 2 Other 641 1,307 — 649 20 — 20 Total 11,663 15,102 — 12,848 150 152 (2 ) With impairment reserve recorded: Commercial real estate: Owner occupied $ 631 $ 631 $ 18 $ 628 $ 9 $ — $ 9 Non-owner occupied — — — — — — — Construction and land development — — — — — — — Multi-family — — — — — — — 1-4 family 856 862 126 851 7 — 7 Commercial and industrial 6,240 6,240 730 6,224 143 — 143 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 99 99 23 98 2 — 2 Other — — — — — — — Total 7,826 7,832 897 7,801 161 — 161 Total: Commercial real estate: Owner occupied $ 2,886 $ 2,886 $ 18 $ 2,768 $ 44 $ — $ 44 Non-owner occupied 899 939 — 1,843 6 — 6 Construction and land development 4,701 7,372 — 4,935 34 — 34 Multi-family — — — 1 1 134 (133 ) 1-4 family 3,298 3,366 126 3,509 37 — 37 Commercial and industrial 6,721 6,721 730 6,330 165 18 147 Direct financing leases, net — — — 23 — — — Consumer and other: Home equity and second mortgages 343 343 23 591 4 — 4 Other 641 1,307 — 649 20 — 20 Grand total $ 19,489 $ 22,934 $ 897 $ 20,649 $ 311 $ 152 $ 159 (1) Average recorded investment is calculated primarily using daily average balances. Impaired Loans and Leases As of and for the Year Ended December 31, 2015 Recorded Unpaid Impairment Average (1) Foregone Interest Net (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. |
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 Three Months Ended March 31, 2016 Commercial real estate Commercial and industrial loans and leases Consumer and other Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 11,220 $ 4,387 $ 709 $ 16,316 Charge-offs (41 ) (196 ) (7 ) (244 ) Recoveries 84 — 3 87 Provision 217 297 11 525 Ending balance $ 11,480 $ 4,488 $ 716 $ 16,684 Ending balance: individually evaluated for impairment $ 144 $ 730 $ 23 $ 897 Ending balance: collectively evaluated for impairment $ 11,336 $ 3,758 $ 693 $ 15,787 Ending balance: loans acquired with deteriorated credit quality $ — $ — $ — $ — Loans and lease receivables: Ending balance, gross $ 932,227 $ 493,190 $ 25,876 $ 1,451,293 Ending balance: individually evaluated for impairment $ 9,106 $ 6,481 $ 793 $ 16,380 Ending balance: collectively evaluated for impairment $ 920,443 $ 486,468 $ 24,892 $ 1,431,803 Ending balance: loans acquired with deteriorated credit quality $ 2,678 $ 241 $ 191 $ 3,110 Allowance as % of gross loans 1.23 % 0.91 % 2.77 % 1.15 % 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 $ 23,495 $ 1,410,889 Ending balance: loans acquired with deteriorated credit quality $ 2,742 $ 246 $ 193 $ 3,181 Allowance as % of gross loans 1.24 % 0.87 % 2.89 % 1.14 % |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deposits [Abstract] | |
Deposits | The composition of deposits at March 31, 2016 and December 31, 2015 was as follows. Average balances represent year-to-date averages. March 31, 2016 December 31, 2015 Balance Average balance Weighted average rate Balance Average balance Weighted average rate (Dollars in Thousands) Non-interest-bearing transaction accounts $ 236,662 $ 228,294 — % $ 231,199 $ 211,945 — % Interest-bearing transaction accounts 154,351 162,793 0.22 165,921 125,558 0.24 Money market accounts 646,336 646,362 0.51 612,642 602,842 0.55 Certificates of deposit 68,284 73,163 0.80 79,986 106,177 0.78 Wholesale deposits 475,955 497,274 1.60 487,483 450,460 1.43 Total deposits $ 1,581,588 $ 1,607,886 0.76 $ 1,577,231 $ 1,496,982 0.73 |
FHLB Advances, Other Borrowin30
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The composition of borrowed funds at March 31, 2016 and December 31, 2015 was as follows. Average balances represent year-to-date averages. March 31, 2016 December 31, 2015 Balance Average balance Weighted average rate Balance Average balance Weighted average rate (Dollars in Thousands) Federal funds purchased $ — $ — — % $ — $ 237 0.86 % FHLB advances and other borrowings 8,646 9,033 2.00 9,790 15,457 1.14 Senior line of credit 3,910 3,064 3.22 2,510 1,619 3.18 Subordinated notes payable 22,455 22,446 7.14 22,440 22,410 7.14 Junior subordinated notes 9,993 9,991 11.09 9,990 9,982 11.14 $ 45,004 $ 44,534 6.75 $ 44,730 $ 49,705 5.94 Short-term borrowings $ 6,910 $ 7,010 Long-term borrowings 38,094 37,720 $ 45,004 $ 44,730 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: Municipal obligations $ — $ 5,194 $ — $ 5,194 Asset backed securities — 1,219 — 1,219 U.S. Government agency obligations - government-sponsored enterprises — 8,067 — 8,067 Collateralized mortgage obligations - government issued — 40,381 — 40,381 Collateralized mortgage obligations - government-sponsored enterprises — 85,962 — 85,962 Interest rate swaps — 1,139 — 1,139 Liabilities: Interest rate swaps $ — $ 1,139 $ — $ 1,139 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, Nonrecurring Basis | Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: Balance at Fair Value Measurements Using Total Gains (Losses) March 31, Level 1 Level 2 Level 3 (In Thousands) Impaired loans $ 14,314 $ — $ 12,601 $ 1,713 $ — Foreclosed properties 1,677 — 1,677 — — Loan servicing rights 1,692 — — 1,692 — Balance at Fair Value Measurements Using Total Gains (Losses) December 31, 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 — |
Foreclosed Properties | The activity of the Corporation’s foreclosed properties is summarized as follows: As of and for the Three Months Ended March 31, 2016 As of and for the Year Ended December 31, 2015 (In Thousands) Foreclosed properties at the beginning of the period $ 1,677 $ 1,693 Foreclosed properties acquired in acquisition, at fair value — — Loans transferred to foreclosed properties, at lower of cost or fair value — 341 Proceeds from sale of foreclosed properties — (528 ) Net gain on sale of foreclosed properties — 207 Impairment valuation — (36 ) Foreclosed properties at the end of the period $ 1,677 $ 1,677 |
Fair Value, by Balance Sheet Grouping | Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: March 31, 2016 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 104,854 $ 104,858 $ 89,259 $ 4,699 $ 10,900 Securities available-for-sale 140,823 140,823 — 140,823 — Securities held-to-maturity 36,485 37,213 — 37,213 — Loans held for sale 1,697 1,697 — 1,697 — Loans and lease receivables, net 1,431,902 1,460,700 — 12,601 1,448,099 Federal Home Loan Bank and Federal Reserve Bank stock 2,734 2,734 — — 2,734 Cash surrender value of life insurance 28,541 28,541 28,541 — — Accrued interest receivable 4,789 4,789 4,789 — — Interest rate swaps 1,139 1,139 — 1,139 — Financial liabilities: Deposits $ 1,581,588 $ 1,586,447 $ 1,037,349 $ 549,098 $ — Federal Home Loan Bank and other borrowings 35,011 35,841 — 35,841 — Junior subordinated notes 9,993 6,613 — — 6,613 Interest rate swaps 1,139 1,139 — 1,139 — Accrued interest payable 1,937 1,937 1,937 — — Off-balance-sheet items: Standby letters of credit 65 65 — — 65 December 31, 2015 Carrying Amount 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 and Federal Reserve 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 34,740 35,353 — 35,353 — Junior subordinated notes 9,990 6,614 — — 6,614 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 |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides information about the location and fair value of the Corporation’s derivative instruments as of March 31, 2016 and December 31, 2015 . 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 March 31, 2016 Accrued interest receivable and other assets $ 1,139 Accrued interest payable and other liabilities $ 1,139 December 31, 2015 Accrued interest receivable and other assets $ 552 Accrued interest payable and other liabilities $ 552 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , respectively: Actual Minimum Required for Capital Adequacy Purposes Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of March 31, 2016 Total capital (to risk-weighted assets) Consolidated $ 192,670 11.24 % $ 137,131 8.00 % N/A N/A First Business Bank 145,732 11.43 102,002 8.00 $ 127,502 10.00 % First Business Bank — Milwaukee 21,170 11.74 14,425 8.00 18,032 10.00 Alterra Bank 31,464 12.37 20,345 8.00 25,432 10.00 Tier 1 capital (to risk-weighted assets) Consolidated $ 153,531 8.96 % $ 102,848 6.00 % N/A N/A First Business Bank 132,943 10.43 76,501 6.00 $ 102,002 8.00 % First Business Bank — Milwaukee 19,350 10.73 10,819 6.00 14,425 8.00 Alterra Bank 29,390 11.56 15,259 6.00 20,345 8.00 Common equity tier 1 capital (to risk-weighted assets) Consolidated $ 143,531 8.37 % $ 77,136 4.50 % N/A N/A First Business Bank 132,943 10.43 57,376 4.50 $ 82,877 6.50 % First Business Bank — Milwaukee 19,350 10.73 8,114 4.50 11,721 6.50 Alterra Bank 29,390 11.56 11,444 4.50 16,530 6.50 Tier 1 capital (to average assets) Consolidated $ 153,531 8.44 % $ 72,805 4.00 % N/A N/A First Business Bank 132,943 10.30 51,647 4.00 $ 64,559 5.00 % First Business Bank — Milwaukee 19,350 7.38 10,485 4.00 13,106 5.00 Alterra Bank 29,390 9.45 12,440 4.00 15,551 5.00 Actual Minimum Required for Capital Adequacy Purposes Minimum Required to Be Well 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 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic earnings per common share | ||
Net income | $ 4,547 | $ 4,192 |
Less: earnings allocated to participating securities | 70 | 73 |
Basic earnings allocated to common shareholders | $ 4,477 | $ 4,119 |
Weighted-average common shares outstanding, excluding participating securities | 8,565,050 | 8,525,127 |
Basic earnings per common share | $ 0.52 | $ 0.48 |
Diluted earnings per common share | ||
Earnings allocated to common shareholders, diluted | $ 4,477 | $ 4,119 |
Weighted-average common shares outstanding, excluding participating securities | 8,565,050 | 8,525,127 |
Dilutive effect of share-based awards | 0 | 4,531 |
Weighted-average diluted common shares outstanding, excluding participating securities | 8,565,050 | 8,529,658 |
Diluted earnings per common share | $ 0.52 | $ 0.48 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative Disclosures) (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Share Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Number of Restricted Shares | ||
Nonvested balance, beginning | 135,471 | 154,998 |
Granted | 2,905 | 53,790 |
Vested | (2,246) | (64,874) |
Forfeited | (2,044) | (8,443) |
Nonvested balance, ending | 134,086 | 135,471 |
Weighted Average Grant-Date Fair Value | ||
Nonvested balance, beginning | $ 20.13 | $ 16.97 |
Granted | 21.68 | 22.52 |
Vested | 21.35 | 15.23 |
Forfeited | 14.50 | 15.03 |
Nonvested balance, ending | $ 20.23 | $ 20.13 |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Payment Plan Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation | $ 296 | $ 234 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares available for grant | 310,584 | ||
Stock options graded vesting minimum period | 4 years | ||
Stock options graded vesting maximum period | 8 years | ||
Stock options contractual term | 10 years | ||
Stock-based compensation related to stock options recognized in the consolidated financial statements | $ 0 | $ 0 | |
Deferred compensation expense yet to be recognized | $ 2,000 | ||
Period of time that deferred compensation expense will be recognized | 2 years 7 months 17 days | ||
Stock options outstanding | 0 | 0 |
Securities (Available-for-Sale
Securities (Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities | ||
Amortized cost | $ 139,604 | $ 140,204 |
Gross unrealized holding gains | 1,401 | 973 |
Gross unrealized holding losses | (182) | (629) |
Estimated fair value | 140,823 | 140,548 |
U.S. Government agency obligations - government-sponsored enterprises | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 8,047 | 8,047 |
Gross unrealized holding gains | 34 | 2 |
Gross unrealized holding losses | (14) | (32) |
Estimated fair value | 8,067 | 8,017 |
Municipal obligations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 5,176 | 4,278 |
Gross unrealized holding gains | 22 | 12 |
Gross unrealized holding losses | (4) | (7) |
Estimated fair value | 5,194 | 4,283 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 1,279 | 1,327 |
Gross unrealized holding gains | 0 | 0 |
Gross unrealized holding losses | (60) | (58) |
Estimated fair value | 1,219 | 1,269 |
Collateralized mortgage obligations - government issued | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 39,577 | 43,845 |
Gross unrealized holding gains | 836 | 814 |
Gross unrealized holding losses | (32) | (116) |
Estimated fair value | 40,381 | 44,543 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 85,525 | 82,707 |
Gross unrealized holding gains | 509 | 145 |
Gross unrealized holding losses | (72) | (416) |
Estimated fair value | $ 85,962 | $ 82,436 |
Securities (Held-to-Maturity Se
Securities (Held-to-Maturity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities | ||
Amortized cost | $ 36,485 | $ 37,282 |
Gross unrecognized holding gains | 739 | 377 |
Gross unrecognized holding losses | (11) | (101) |
Estimated Fair Value | 37,213 | 37,558 |
U.S. Government agency obligations - government-sponsored enterprises | ||
Schedule of Held-to-maturity Securities | ||
Amortized cost | 1,496 | 1,495 |
Gross unrecognized holding gains | 6 | 1 |
Gross unrecognized holding losses | (3) | (11) |
Estimated Fair Value | 1,499 | 1,485 |
Municipal obligations | ||
Schedule of Held-to-maturity Securities | ||
Amortized cost | 16,026 | 16,038 |
Gross unrecognized holding gains | 443 | 332 |
Gross unrecognized holding losses | (7) | (5) |
Estimated Fair Value | 16,462 | 16,365 |
Collateralized mortgage obligations - government issued | ||
Schedule of Held-to-maturity Securities | ||
Amortized cost | 11,176 | 11,718 |
Gross unrecognized holding gains | 144 | 32 |
Gross unrecognized holding losses | (1) | (41) |
Estimated Fair Value | 11,319 | 11,709 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Schedule of Held-to-maturity Securities | ||
Amortized cost | 7,787 | 8,031 |
Gross unrecognized holding gains | 146 | 12 |
Gross unrecognized holding losses | 0 | (44) |
Estimated Fair Value | $ 7,933 | $ 7,999 |
Securities (Contractual Maturit
Securities (Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 1,000 | |
Due in one year through five years | 14,019 | |
Due in five through ten years | 91,048 | |
Due in over ten years | 33,537 | |
Amortized cost | 139,604 | $ 140,204 |
Available-for-Sale, Estimated Fair Value | ||
Due in one year or less | 1,000 | |
Due in one year through five years | 14,089 | |
Due in five through ten years | 91,897 | |
Due in over ten years | 33,837 | |
Estimated fair value | 140,823 | 140,548 |
Held-to-Maturity, Amortized Cost | ||
Due in one year or less | 0 | |
Due in one year through five years | 4,794 | |
Due in five through ten years | 12,727 | |
Due in over ten years | 18,964 | |
Amortized cost | 36,485 | 37,282 |
Held-to-Maturity, Estimated Fair Value | ||
Due in one year or less | 0 | |
Due in one year through five years | 4,847 | |
Due in five through ten years | 13,113 | |
Due in over ten years | 19,253 | |
Estimated Fair Value | $ 37,213 | $ 37,558 |
Securities (Unrealized Losses A
Securities (Unrealized Losses Available for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair value | ||
Less than 12 months | $ 23,878 | $ 70,573 |
12 months or longer | 6,951 | 9,385 |
Total | 30,829 | 79,958 |
Unrealized losses | ||
Less than 12 months | 123 | 470 |
12 months or longer | 59 | 159 |
Total | 182 | 629 |
U.S. Government agency obligations - government-sponsored enterprises | ||
Fair value | ||
Less than 12 months | 1,746 | 3,536 |
12 months or longer | 1,990 | 1,981 |
Total | 3,736 | 5,517 |
Unrealized losses | ||
Less than 12 months | 4 | 13 |
12 months or longer | 10 | 19 |
Total | 14 | 32 |
Municipal obligations | ||
Fair value | ||
Less than 12 months | 913 | 2,403 |
12 months or longer | 414 | 0 |
Total | 1,327 | 2,403 |
Unrealized losses | ||
Less than 12 months | 2 | 7 |
12 months or longer | 2 | 0 |
Total | 4 | 7 |
Asset-backed securities | ||
Fair value | ||
Less than 12 months | 1,219 | 1,269 |
12 months or longer | 0 | 0 |
Total | 1,219 | 1,269 |
Unrealized losses | ||
Less than 12 months | 60 | 58 |
12 months or longer | 0 | 0 |
Total | 60 | 58 |
Collateralized mortgage obligations - government issued | ||
Fair value | ||
Less than 12 months | 442 | 3,373 |
12 months or longer | 2,865 | 5,687 |
Total | 3,307 | 9,060 |
Unrealized losses | ||
Less than 12 months | 1 | 19 |
12 months or longer | 31 | 97 |
Total | 32 | 116 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Fair value | ||
Less than 12 months | 19,558 | 59,992 |
12 months or longer | 1,682 | 1,717 |
Total | 21,240 | 61,709 |
Unrealized losses | ||
Less than 12 months | 56 | 373 |
12 months or longer | 16 | 43 |
Total | $ 72 | $ 416 |
Securities (Unrealized Losses H
Securities (Unrealized Losses Held-to-Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value | ||
Less than 12 months | $ 268 | $ 12,122 |
12 months or longer | 1,811 | 1,199 |
Total | 2,079 | 13,321 |
Unrealized Losses | ||
Less than 12 months | 1 | 89 |
12 months or longer | 10 | 12 |
Total | 11 | 101 |
U.S. Government agency obligations - government-sponsored enterprises | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or longer | 1,000 | 1,000 |
Total | 1,000 | 1,000 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | 3 | 11 |
Total | 3 | 11 |
Municipal obligations | ||
Fair Value | ||
Less than 12 months | 268 | 436 |
12 months or longer | 206 | 199 |
Total | 474 | 635 |
Unrealized Losses | ||
Less than 12 months | 1 | 4 |
12 months or longer | 6 | 1 |
Total | 7 | 5 |
Collateralized mortgage obligations - government issued | ||
Fair Value | ||
Less than 12 months | 0 | 6,518 |
12 months or longer | 605 | 0 |
Total | 605 | 6,518 |
Unrealized Losses | ||
Less than 12 months | 0 | 41 |
12 months or longer | 1 | 0 |
Total | 1 | 41 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Fair Value | ||
Less than 12 months | 0 | 5,168 |
12 months or longer | 0 | 0 |
Total | 0 | 5,168 |
Unrealized Losses | ||
Less than 12 months | 0 | 44 |
12 months or longer | 0 | 0 |
Total | $ 0 | $ 44 |
Securities (Narrative Disclosur
Securities (Narrative Disclosures) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)securities | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of available-for-sale securities | $ | $ 0 | $ 0 | |
Available-for-sale securities pledged as collateral | $ | $ 21,200 | $ 23,000 | |
Number of available-for-sales securities in an unrealized loss position | securities | 35 | ||
Number of available-for-sale securities in an unrealized loss position, twelve months or greater | securities | 10 | ||
Other than temporary impairment on available-for-sale securities recorded on the income statement | $ | $ 0 | $ 0 | |
Number of held-to-maturity securities in an unrealized loss position | securities | 5 | ||
Number of held-to-maturity Securities in an unrealized loss position, twelve months or greater | securities | 4 | ||
Other than temporary impairment on held-to-maturity securities recorded on the income statement | $ | $ 0 |
Loan and Lease Receivables, I45
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Loan Composition) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Commercial real estate — owner occupied | $ 174,286 | $ 176,322 |
Commercial real estate — non-owner occupied | 441,539 | 436,901 |
Construction and land development | 179,778 | 160,404 |
Multi-family | 84,004 | 80,254 |
1-4 family (1) | 52,620 | 51,607 |
Total commercial real estate | 932,227 | 905,488 |
Commercial and industrial (2) | 461,573 | 473,592 |
Direct financing leases, net | 31,617 | 31,093 |
Home equity and second mortgages | 7,366 | 8,237 |
Other | 18,510 | 16,319 |
Total consumer and other | 25,876 | 24,556 |
Total gross loans and leases receivable | 1,451,293 | 1,434,729 |
Allowance for loan and lease losses | 16,684 | 16,316 |
Deferred loan fees | 1,010 | 1,062 |
Loans and leases receivable, net | $ 1,433,599 | $ 1,417,351 |
Loan and Lease Receivables, I46
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 - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Contractually Required Payments Receivable, Expected Cash Flows, and Fair Value of Credit Impaired Loans Acquired [Line Items] | ||
Contractually required payments | $ 5,166 | $ 5,291 |
Fair value of purchase credit impaired loans | $ 3,160 | $ 3,250 |
Loan and Lease Receivables, I47
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Accretable Yield) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | ||
Accretable yield at the beginning of period | $ 414 | $ 676 |
Accretion | (33) | (50) |
Reclassification to nonaccretable difference for loans with changing cash flows | (9) | (60) |
Changes in accretable yield for non-credit related changes in expected cash flows | 9 | (152) |
Outstanding accretable yield | $ 381 | $ 414 |
Loan and Lease Receivables, I48
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Loans by Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 174,286 | $ 176,322 |
Commercial real estate — non-owner occupied | 441,539 | 436,901 |
Construction and land development | 179,778 | 160,404 |
Multi-family | 84,004 | 80,254 |
1-4 family | 52,620 | 51,607 |
Total commercial real estate | 932,227 | 905,488 |
Commercial and industrial | 461,573 | 473,592 |
Direct financing leases, net | 31,617 | 31,093 |
Home equity and second mortgages | 7,366 | 8,237 |
Other | 18,510 | 16,319 |
Total consumer and other | 25,876 | 24,556 |
Total gross loans and leases receivable | $ 1,451,293 | $ 1,434,729 |
Category as a % of total portfolio | 100.00% | 100.00% |
Category I | ||
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 144,146 | $ 156,379 |
Commercial real estate — non-owner occupied | 406,493 | 410,517 |
Construction and land development | 165,735 | 151,508 |
Multi-family | 83,487 | 79,368 |
1-4 family | 43,432 | 42,389 |
Total commercial real estate | 843,293 | 840,161 |
Commercial and industrial | 384,103 | 431,598 |
Direct financing leases, net | 30,195 | 29,514 |
Home equity and second mortgages | 6,118 | 7,497 |
Other | 17,846 | 15,616 |
Total consumer and other | 23,964 | 23,113 |
Total gross loans and leases receivable | $ 1,281,555 | $ 1,324,386 |
Category as a % of total portfolio | 88.31% | 92.30% |
Category II | ||
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 14,184 | $ 7,654 |
Commercial real estate — non-owner occupied | 28,185 | 20,662 |
Construction and land development | 6,215 | 3,092 |
Multi-family | 517 | 884 |
1-4 family | 4,104 | 3,985 |
Total commercial real estate | 53,205 | 36,277 |
Commercial and industrial | 27,028 | 7,139 |
Direct financing leases, net | 964 | 1,013 |
Home equity and second mortgages | 766 | 0 |
Other | 23 | 48 |
Total consumer and other | 789 | 48 |
Total gross loans and leases receivable | $ 81,986 | $ 44,477 |
Category as a % of total portfolio | 5.65% | 3.10% |
Category III | ||
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 13,070 | $ 9,311 |
Commercial real estate — non-owner occupied | 5,962 | 3,408 |
Construction and land development | 3,127 | 874 |
Multi-family | 0 | 0 |
1-4 family | 1,786 | 1,865 |
Total commercial real estate | 23,945 | 15,458 |
Commercial and industrial | 43,721 | 25,706 |
Direct financing leases, net | 458 | 528 |
Home equity and second mortgages | 139 | 141 |
Other | 0 | 0 |
Total consumer and other | 139 | 141 |
Total gross loans and leases receivable | $ 68,263 | $ 41,833 |
Category as a % of total portfolio | 4.70% | 2.92% |
Category IV | ||
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 2,886 | $ 2,978 |
Commercial real estate — non-owner occupied | 899 | 2,314 |
Construction and land development | 4,701 | 4,930 |
Multi-family | 0 | 2 |
1-4 family | 3,298 | 3,368 |
Total commercial real estate | 11,784 | 13,592 |
Commercial and industrial | 6,721 | 9,149 |
Direct financing leases, net | 0 | 38 |
Home equity and second mortgages | 343 | 599 |
Other | 641 | 655 |
Total consumer and other | 984 | 1,254 |
Total gross loans and leases receivable | $ 19,489 | $ 24,033 |
Category as a % of total portfolio | 1.34% | 1.68% |
Loan and Lease Receivables, I49
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | $ 5,938 | $ 5,853 |
Current | 1,445,355 | 1,428,876 |
Non-accrual loans and leases | 17,861 | 22,298 |
Total gross loans and leases receivable | $ 1,451,293 | $ 1,434,729 |
30 to 59 days past due, percent of total portfolio | 0.07% | 0.21% |
60 to 89 days past due, percent of total portfolio | 0.15% | 0.04% |
Greater than 90 days past due, percent of portfolio | 0.19% | 0.16% |
Past due, percent of total portfolio | 0.41% | 0.41% |
Current, percent of total portfolio | 99.59% | 99.59% |
Gross loans, percent of total portfolio | 100.00% | 100.00% |
Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | $ 465 | $ 473 |
Current | 173,821 | 175,850 |
Non-accrual loans and leases | 2,817 | 2,907 |
Total gross loans and leases receivable | 174,286 | 176,323 |
Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 588 | 0 |
Current | 440,951 | 436,900 |
Non-accrual loans and leases | 262 | 1,678 |
Total gross loans and leases receivable | 441,539 | 436,900 |
Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,766 | 397 |
Current | 178,012 | 160,007 |
Non-accrual loans and leases | 4,502 | 4,729 |
Total gross loans and leases receivable | 179,778 | 160,404 |
Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 84,004 | 80,254 |
Non-accrual loans and leases | 0 | 2 |
Total gross loans and leases receivable | 84,004 | 80,254 |
1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,686 | 1,437 |
Current | 50,934 | 50,170 |
Non-accrual loans and leases | 2,631 | 2,611 |
Total gross loans and leases receivable | 52,620 | 51,607 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 792 | 2,641 |
Current | 460,781 | 470,951 |
Non-accrual loans and leases | 6,718 | 9,136 |
Total gross loans and leases receivable | 461,573 | 473,592 |
Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 31,617 | 31,093 |
Non-accrual loans and leases | 0 | 38 |
Total gross loans and leases receivable | 31,617 | 31,093 |
Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 250 |
Current | 7,366 | 7,987 |
Non-accrual loans and leases | 290 | 542 |
Total gross loans and leases receivable | 7,366 | 8,237 |
Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 641 | 655 |
Current | 17,869 | 15,664 |
Non-accrual loans and leases | 641 | 655 |
Total gross loans and leases receivable | 18,510 | 16,319 |
Accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,963 | 78 |
Current | 1,431,469 | 1,412,353 |
Accrual loans and leases | 1,433,432 | 1,412,431 |
Accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 171,469 | 173,416 |
Accrual loans and leases | 171,469 | 173,416 |
Accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 588 | 0 |
Current | 440,689 | 435,222 |
Accrual loans and leases | 441,277 | 435,222 |
Accruing loans and leases | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,375 | 0 |
Current | 173,901 | 155,675 |
Accrual loans and leases | 175,276 | 155,675 |
Accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 84,004 | 80,252 |
Accrual loans and leases | 84,004 | 80,252 |
Accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 78 |
Current | 49,989 | 48,918 |
Accrual loans and leases | 49,989 | 48,996 |
Accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 454,855 | 464,456 |
Accrual loans and leases | 454,855 | 464,456 |
Accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 31,617 | 31,055 |
Accrual loans and leases | 31,617 | 31,055 |
Accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 7,076 | 7,695 |
Accrual loans and leases | 7,076 | 7,695 |
Accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 17,869 | 15,664 |
Accrual loans and leases | 17,869 | 15,664 |
Non-accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 3,975 | 5,775 |
Current | 13,886 | 16,523 |
Non-accrual loans and leases | 17,861 | 22,298 |
Non-accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 465 | 473 |
Current | 2,352 | 2,434 |
Non-accrual loans and leases | 2,817 | 2,907 |
Non-accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 262 | 1,678 |
Non-accrual loans and leases | 262 | 1,678 |
Non-accruing loans and leases | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 391 | 397 |
Current | 4,111 | 4,332 |
Non-accrual loans and leases | 4,502 | 4,729 |
Non-accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 0 | 2 |
Non-accrual loans and leases | 0 | 2 |
Non-accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,686 | 1,359 |
Current | 945 | 1,252 |
Non-accrual loans and leases | 2,631 | 2,611 |
Non-accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 792 | 2,641 |
Current | 5,926 | 6,495 |
Non-accrual loans and leases | 6,718 | 9,136 |
Non-accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Current | 0 | 38 |
Non-accrual loans and leases | 0 | 38 |
Non-accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 250 |
Current | 290 | 292 |
Non-accrual loans and leases | 290 | 542 |
Non-accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 641 | 655 |
Current | 0 | 0 |
Non-accrual loans and leases | 641 | 655 |
30-59 days past due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,011 | 2,982 |
30-59 days past due | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 465 | 0 |
30-59 days past due | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 234 | 0 |
30-59 days past due | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 312 | 397 |
30-59 days past due | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 508 |
30-59 days past due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 2,077 |
30-59 days past due | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 546 | 78 |
30-59 days past due | Accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 234 | 0 |
30-59 days past due | Accruing loans and leases | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 312 | 0 |
30-59 days past due | Accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 78 |
30-59 days past due | Accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 465 | 2,904 |
30-59 days past due | Non-accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 465 | 0 |
30-59 days past due | Non-accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 397 |
30-59 days past due | Non-accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 430 |
30-59 days past due | Non-accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 2,077 |
30-59 days past due | Non-accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 2,158 | 507 |
60-89 days past due | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 473 |
60-89 days past due | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 354 | 0 |
60-89 days past due | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,063 | 0 |
60-89 days past due | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 741 | 34 |
60-89 days past due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,417 | 0 |
60-89 days past due | Accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 354 | 0 |
60-89 days past due | Accruing loans and leases | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 1,063 | 0 |
60-89 days past due | Accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 741 | 507 |
60-89 days past due | Non-accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 473 |
60-89 days past due | Non-accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 741 | 34 |
60-89 days past due | Non-accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 2,769 | 2,364 |
Greater than 90 days past due | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 391 | 0 |
Greater than 90 days past due | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 945 | 895 |
Greater than 90 days past due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 792 | 564 |
Greater than 90 days past due | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 250 |
Greater than 90 days past due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 641 | 655 |
Greater than 90 days past due | Accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 2,769 | 2,364 |
Greater than 90 days past due | Non-accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | Construction and land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 391 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 945 | 895 |
Greater than 90 days past due | Non-accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 792 | 564 |
Greater than 90 days past due | Non-accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | 0 | 250 |
Greater than 90 days past due | Non-accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total past due | $ 641 | $ 655 |
Loan and Lease Receivables, I50
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Non-accrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired | |||
Non-accrual loans and leases | $ 17,861 | $ 22,298 | |
Foreclosed properties, net | 1,677 | 1,677 | $ 1,693 |
Total non-performing assets | 19,538 | 23,975 | |
Performing troubled debt restructurings | 1,628 | 1,735 | |
Total impaired assets | $ 21,166 | $ 25,710 | |
Total non-accrual loans and leases to gross loans and leases | 1.23% | 1.55% | |
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 1.34% | 1.67% | |
Total non-performing assets to total assets | 1.09% | 1.35% | |
Allowance for loan and lease losses to gross loans and leases | 1.15% | 1.14% | |
Allowance for loan and lease losses to non-accrual loans and leases | 93.41% | 73.17% | |
Commercial real estate — owner occupied | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | $ 2,817 | $ 2,907 | |
Commercial real estate — non-owner occupied | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | 262 | 1,678 | |
Construction and land development | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | 4,502 | 4,729 | |
Multi-family | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | 0 | 2 | |
1-4 family | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | 2,631 | 2,611 | |
Total non-accrual commercial real estate | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | $ 10,212 | $ 11,927 | |
Allowance for loan and lease losses to gross loans and leases | 1.23% | 1.24% | |
Commercial and industrial | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | $ 6,718 | $ 9,136 | |
Direct financing leases, net | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | 0 | 38 | |
Home equity and second mortgages | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | 290 | 542 | |
Other | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | 641 | 655 | |
Total non-accrual consumer and other loans | |||
Financing Receivable, Impaired | |||
Non-accrual loans and leases | $ 931 | $ 1,197 | |
Allowance for loan and lease losses to gross loans and leases | 2.77% | 2.89% |
Loan and Lease Receivables, I51
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) $ in Thousands | Mar. 31, 2016USD ($)loans | Dec. 31, 2015USD ($)loans |
Troubled debt restructurings | ||
Number of Loans | loans | 42 | 42 |
Pre-Modification Recorded Investment | $ 20,938 | $ 20,721 |
Post-Modification Recorded Investment | $ 15,629 | $ 17,890 |
Commercial real estate — owner occupied | ||
Troubled debt restructurings | ||
Number of Loans | loans | 3 | 3 |
Pre-Modification Recorded Investment | $ 1,209 | $ 1,209 |
Post-Modification Recorded Investment | $ 1,163 | $ 1,188 |
Commercial real estate — non-owner occupied | ||
Troubled debt restructurings | ||
Number of Loans | loans | 5 | 5 |
Pre-Modification Recorded Investment | $ 1,150 | $ 1,150 |
Post-Modification Recorded Investment | $ 899 | $ 904 |
Construction and land development | ||
Troubled debt restructurings | ||
Number of Loans | loans | 3 | 3 |
Pre-Modification Recorded Investment | $ 6,034 | $ 6,034 |
Post-Modification Recorded Investment | $ 4,351 | $ 4,593 |
Multi-family | ||
Troubled debt restructurings | ||
Number of Loans | loans | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 184 |
Post-Modification Recorded Investment | $ 0 | $ 2 |
1-4 family | ||
Troubled debt restructurings | ||
Number of Loans | loans | 15 | 15 |
Pre-Modification Recorded Investment | $ 2,035 | $ 2,035 |
Post-Modification Recorded Investment | $ 1,840 | $ 1,869 |
Commercial and industrial | ||
Troubled debt restructurings | ||
Number of Loans | loans | 11 | 10 |
Pre-Modification Recorded Investment | $ 7,973 | $ 7,572 |
Post-Modification Recorded Investment | $ 6,392 | $ 8,330 |
Home equity and second mortgages | ||
Troubled debt restructurings | ||
Number of Loans | loans | 4 | 4 |
Pre-Modification Recorded Investment | $ 461 | $ 461 |
Post-Modification Recorded Investment | $ 343 | $ 349 |
Other | ||
Troubled debt restructurings | ||
Number of Loans | loans | 1 | 1 |
Pre-Modification Recorded Investment | $ 2,076 | $ 2,076 |
Post-Modification Recorded Investment | $ 641 | $ 655 |
Loan and Lease Receivables, I52
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Troubled Debt Restructurings by Modification Type) (Details) $ in Thousands | Mar. 31, 2016USD ($)securitiesloans | Dec. 31, 2015USD ($)securitiesloans |
Troubled debt restructurings | ||
Number of Loans | loans | 42 | 42 |
Recorded Investment | $ 15,629 | $ 17,890 |
Commercial and industrial | ||
Troubled debt restructurings | ||
Number of Loans | loans | 11 | 10 |
Recorded Investment | $ 6,392 | $ 8,330 |
Troubled Debt Restructuring, Combination of Extension of Term and Interest Rate Concession [Member] | Commercial real estate | ||
Troubled debt restructurings | ||
Number of Loans | loans | 24 | 25 |
Recorded Investment | $ 8,179 | $ 8,477 |
Troubled Debt Restructuring, Combination of Extension of Term and Interest Rate Concession [Member] | Commercial and industrial | ||
Troubled debt restructurings | ||
Number of Loans | loans | 11 | 10 |
Recorded Investment | $ 6,392 | $ 8,330 |
Troubled Debt Restructuring, Combination of Extension of Term and Interest Rate Concession [Member] | Consumer and other | ||
Troubled debt restructurings | ||
Number of Loans | loans | 4 | 4 |
Recorded Investment | $ 343 | $ 349 |
Troubled Debt Restructuring, Interest Rate Concession [Member] | Commercial real estate | ||
Troubled debt restructurings | ||
Number of Loans | securities | 1 | 1 |
Recorded Investment | $ 54 | $ 55 |
Troubled Debt Restructuring, Extension of Term [Member] | Commercial real estate | ||
Troubled debt restructurings | ||
Number of Loans | loans | 1 | 1 |
Recorded Investment | $ 20 | $ 24 |
Troubled Debt Restructuring, Extension of Term [Member] | Consumer and other | ||
Troubled debt restructurings | ||
Number of Loans | loans | 1 | 1 |
Recorded Investment | $ 641 | $ 655 |
Loan and Lease Receivables, I53
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Impaired Loans and Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | |||
Recorded investment | ||||
With no impairment reserve recorded | $ 11,663 | $ 15,175 | ||
With impairment reserve recorded | 7,826 | 8,858 | ||
Total | 19,489 | 24,033 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 15,102 | 19,026 | ||
With impairment reserve recorded | 7,832 | 8,863 | ||
Total | 22,934 | 27,889 | ||
Impairment reserve | ||||
Impairment reserve | 897 | 1,113 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 12,848 | [1] | 9,721 | [2] |
With impairment reserve recorded | 7,801 | [1] | 1,722 | [2] |
Total | 20,649 | [1] | 11,443 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 150 | 597 | ||
With impairment reserve recorded | 161 | 153 | ||
Foregone interest income | 311 | 750 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 152 | 85 | ||
With impairment reserve recorded | 0 | 2 | ||
Total | 152 | 87 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | (2) | 512 | ||
With impairment reserve recorded | 161 | 151 | ||
Total | 159 | 663 | ||
Commercial real estate — owner occupied | ||||
Recorded investment | ||||
With no impairment reserve recorded | 2,255 | 2,164 | ||
With impairment reserve recorded | 631 | 814 | ||
Total | 2,886 | 2,978 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 2,255 | 2,164 | ||
With impairment reserve recorded | 631 | 814 | ||
Total | 2,886 | 2,978 | ||
Impairment reserve | ||||
Impairment reserve | 18 | 20 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 2,140 | [1] | 712 | [2] |
With impairment reserve recorded | 628 | [1] | 215 | [2] |
Total | 2,768 | [1] | 927 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 35 | 53 | ||
With impairment reserve recorded | 9 | 7 | ||
Foregone interest income | 44 | 60 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 0 | 12 | ||
With impairment reserve recorded | 0 | 2 | ||
Total | 0 | 14 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | 35 | 41 | ||
With impairment reserve recorded | 9 | 5 | ||
Total | 44 | 46 | ||
Commercial real estate — non-owner occupied | ||||
Recorded investment | ||||
With no impairment reserve recorded | 899 | 2,314 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 899 | 2,314 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 939 | 2,355 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 939 | 2,355 | ||
Impairment reserve | ||||
Impairment reserve | 0 | 0 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 1,843 | [1] | 962 | [2] |
With impairment reserve recorded | 0 | [1] | 0 | [2] |
Total | 1,843 | [1] | 962 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 6 | 25 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 6 | 25 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | 6 | 25 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 6 | 25 | ||
Construction and land development | ||||
Recorded investment | ||||
With no impairment reserve recorded | 4,701 | 4,533 | ||
With impairment reserve recorded | 0 | 397 | ||
Total | 4,701 | 4,930 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 7,372 | 7,203 | ||
With impairment reserve recorded | 0 | 397 | ||
Total | 7,372 | 7,600 | ||
Impairment reserve | ||||
Impairment reserve | 0 | 48 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 4,935 | [1] | 4,807 | [2] |
With impairment reserve recorded | 0 | [1] | 34 | [2] |
Total | 4,935 | [1] | 4,841 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 34 | 133 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 34 | 133 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | 34 | 133 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 34 | 133 | ||
Multi-family | ||||
Recorded investment | ||||
With no impairment reserve recorded | 0 | 2 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 2 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 0 | 369 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 369 | ||
Impairment reserve | ||||
Impairment reserve | 0 | 0 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 1 | [1] | 10 | [2] |
With impairment reserve recorded | 0 | [1] | 0 | [2] |
Total | 1 | [1] | 10 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 1 | 27 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 1 | 27 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 134 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 134 | 0 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | (133) | 27 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | (133) | 27 | ||
1-4 family | ||||
Recorded investment | ||||
With no impairment reserve recorded | 2,442 | 2,423 | ||
With impairment reserve recorded | 856 | 945 | ||
Total | 3,298 | 3,368 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 2,504 | 2,486 | ||
With impairment reserve recorded | 862 | 950 | ||
Total | 3,366 | 3,436 | ||
Impairment reserve | ||||
Impairment reserve | 126 | 173 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 2,658 | [1] | 1,604 | [2] |
With impairment reserve recorded | 851 | [1] | 605 | [2] |
Total | 3,509 | [1] | 2,209 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 30 | 82 | ||
With impairment reserve recorded | 7 | 34 | ||
Foregone interest income | 37 | 116 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 0 | 4 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 4 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | 30 | 78 | ||
With impairment reserve recorded | 7 | 34 | ||
Total | 37 | 112 | ||
Commercial and industrial | ||||
Recorded investment | ||||
With no impairment reserve recorded | 481 | 2,546 | ||
With impairment reserve recorded | 6,240 | 6,603 | ||
Total | 6,721 | 9,149 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 481 | 2,590 | ||
With impairment reserve recorded | 6,240 | 6,603 | ||
Total | 6,721 | 9,193 | ||
Impairment reserve | ||||
Impairment reserve | 730 | 847 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 106 | [1] | 544 | [2] |
With impairment reserve recorded | 6,224 | [1] | 810 | [2] |
Total | 6,330 | [1] | 1,354 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 22 | 172 | ||
With impairment reserve recorded | 143 | 102 | ||
Foregone interest income | 165 | 274 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 18 | 6 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 18 | 6 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | 4 | 166 | ||
With impairment reserve recorded | 143 | 102 | ||
Total | 147 | 268 | ||
Direct financing leases, net | ||||
Recorded investment | ||||
With no impairment reserve recorded | 0 | 38 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 38 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 0 | 38 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 38 | ||
Impairment reserve | ||||
Impairment reserve | 0 | 0 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 23 | [1] | 4 | [2] |
With impairment reserve recorded | 0 | [1] | 0 | [2] |
Total | 23 | [1] | 4 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 0 | 0 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Home equity and second mortgages | ||||
Recorded investment | ||||
With no impairment reserve recorded | 244 | 500 | ||
With impairment reserve recorded | 99 | 99 | ||
Total | 343 | 599 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 244 | 500 | ||
With impairment reserve recorded | 99 | 99 | ||
Total | 343 | 599 | ||
Impairment reserve | ||||
Impairment reserve | 23 | 25 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 493 | [1] | 390 | [2] |
With impairment reserve recorded | 98 | [1] | 58 | [2] |
Total | 591 | [1] | 448 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 2 | 23 | ||
With impairment reserve recorded | 2 | 10 | ||
Foregone interest income | 4 | 33 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 0 | 63 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 63 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | 2 | (40) | ||
With impairment reserve recorded | 2 | 10 | ||
Total | 4 | (30) | ||
Other | ||||
Recorded investment | ||||
With no impairment reserve recorded | 641 | 655 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 641 | 655 | ||
Unpaid principal balance | ||||
With no impairment reserve recorded | 1,307 | 1,321 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 1,307 | 1,321 | ||
Impairment reserve | ||||
Impairment reserve | 0 | 0 | ||
Average recorded investment(1) | ||||
With no impairment reserve recorded | 649 | [1] | 688 | [2] |
With impairment reserve recorded | 0 | [1] | 0 | [2] |
Total | 649 | [1] | 688 | [2] |
Foregone interest income | ||||
With no impairment reserve recorded | 20 | 82 | ||
With impairment reserve recorded | 0 | 0 | ||
Foregone interest income | 20 | 82 | ||
Interest income recognized | ||||
With no impairment reserve recorded | 0 | 0 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | 0 | 0 | ||
Net foregone interest income | ||||
With no impairment reserve recorded | 20 | 82 | ||
With impairment reserve recorded | 0 | 0 | ||
Total | $ 20 | $ 82 | ||
[1] | (1)Average recorded investment is calculated primarily using daily average balances. | |||
[2] | (1)Average recorded investment is calculated primarily using daily average balances. |
Loan and Lease Receivables, I54
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 | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Allowance for credit losses: | ||||
Beginning balance | $ 16,316 | $ 14,329 | ||
Charge-offs | (244) | (1,513) | ||
Recoveries | 87 | 114 | ||
Provision | 525 | 3,386 | ||
Ending balance | 16,316 | 14,329 | $ 16,684 | $ 16,316 |
Ending balance: individually evaluated for impairment | 897 | 1,113 | ||
Ending balance: collectively evaluated for impairment | 15,787 | 15,203 | ||
Loans and lease receivables: | ||||
Total gross loans and leases receivable | 1,451,293 | 1,434,729 | ||
Ending balance: individually evaluated for impairment | 16,380 | 20,852 | ||
Ending balance: collectively evaluated for impairment | $ 1,431,803 | $ 1,410,889 | ||
Allowance as % of gross loans | 1.15% | 1.14% | ||
Commercial real estate | ||||
Allowance for credit losses: | ||||
Beginning balance | 11,220 | 8,619 | ||
Charge-offs | (41) | (793) | ||
Recoveries | 84 | 104 | ||
Provision | 217 | 3,290 | ||
Ending balance | 11,220 | 8,619 | $ 11,480 | $ 11,220 |
Ending balance: individually evaluated for impairment | 144 | 240 | ||
Ending balance: collectively evaluated for impairment | 11,336 | 10,980 | ||
Loans and lease receivables: | ||||
Total gross loans and leases receivable | 932,227 | 905,488 | ||
Ending balance: individually evaluated for impairment | 9,106 | 10,849 | ||
Ending balance: collectively evaluated for impairment | $ 920,443 | $ 891,897 | ||
Allowance as % of gross loans | 1.23% | 1.24% | ||
Commercial and industrial loans and leases | ||||
Allowance for credit losses: | ||||
Beginning balance | 4,387 | 5,492 | ||
Charge-offs | (196) | (711) | ||
Recoveries | 0 | 6 | ||
Provision | 297 | (400) | ||
Ending balance | 4,387 | 5,492 | $ 4,488 | $ 4,387 |
Ending balance: individually evaluated for impairment | 730 | 847 | ||
Ending balance: collectively evaluated for impairment | 3,758 | 3,540 | ||
Loans and lease receivables: | ||||
Total gross loans and leases receivable | 493,190 | 504,685 | ||
Ending balance: individually evaluated for impairment | 6,481 | 8,942 | ||
Ending balance: collectively evaluated for impairment | $ 486,468 | $ 495,497 | ||
Allowance as % of gross loans | 0.91% | 0.87% | ||
Consumer and other | ||||
Allowance for credit losses: | ||||
Beginning balance | 709 | 218 | ||
Charge-offs | (7) | (9) | ||
Recoveries | 3 | 4 | ||
Provision | 11 | 496 | ||
Ending balance | $ 709 | $ 218 | $ 716 | $ 709 |
Ending balance: individually evaluated for impairment | 23 | 26 | ||
Ending balance: collectively evaluated for impairment | 693 | 683 | ||
Loans and lease receivables: | ||||
Total gross loans and leases receivable | 25,876 | 24,556 | ||
Ending balance: individually evaluated for impairment | 793 | 1,061 | ||
Ending balance: collectively evaluated for impairment | $ 24,892 | $ 23,495 | ||
Allowance as % of gross loans | 2.77% | 2.89% | ||
Ending balance: loans acquired with deteriorated credit quality | ||||
Allowance for credit losses: | ||||
Ending balance: individually evaluated for impairment | $ 0 | $ 0 | ||
Loans and lease receivables: | ||||
Ending balance: individually evaluated for impairment | 3,110 | 3,181 | ||
Ending balance: loans acquired with deteriorated credit quality | Commercial real estate | ||||
Allowance for credit losses: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Loans and lease receivables: | ||||
Ending balance: individually evaluated for impairment | 2,678 | 2,742 | ||
Ending balance: loans acquired with deteriorated credit quality | Commercial and industrial loans and leases | ||||
Allowance for credit losses: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Loans and lease receivables: | ||||
Ending balance: individually evaluated for impairment | 241 | 246 | ||
Ending balance: loans acquired with deteriorated credit quality | Consumer and other | ||||
Allowance for credit losses: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Loans and lease receivables: | ||||
Ending balance: individually evaluated for impairment | $ 191 | $ 193 |
Loan and Lease Receivables, I55
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Narrative Disclosures) (Details) loans in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)loans | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment | |||
Loans and leases transferred to third parties total principal amount | $ 18,100 | $ 15,800 | |
Gain (Loss) Recognized on Participation Interest in Originated Loans | 0 | ||
Loan participations purchased on the Corporation's balance sheet | 463 | $ 467 | |
Total amount of outstanding loans transferred to third parties as loan participations | 181,600 | 169,200 | |
Total amount of loan participations remaining on the Corporations balance sheet | 139,600 | 136,800 | |
Loans in the participation sold portfolio, considered impaired | 1,600 | 1,800 | |
Residential Real Estate Loans Sold, Principal Amount | 7,200 | $ 9,100 | |
Total gross loans and leases receivable | 1,451,293 | 1,434,729 | |
Non-accrual troubled debt restructurings | 14,000 | 16,200 | |
Unfunded commitments, troubled debt restructurings | $ 0 | ||
Troubled debt restructurings, subsequent default, number of loans | loans | 0 | ||
Loans and leases receivable, difference between recorded investment and unpaid principal balance | $ 3,400 | 3,900 | |
Performing troubled debt restructurings | 1,628 | 1,735 | |
Substandard | |||
Financing Receivable, Recorded Investment | |||
Total gross loans and leases receivable | 33,900 | 26,800 | |
Special Mention | |||
Financing Receivable, Recorded Investment | |||
Total gross loans and leases receivable | 0 | 0 | |
Doubtful | |||
Financing Receivable, Recorded Investment | |||
Total gross loans and leases receivable | 0 | 0 | |
Loss | |||
Financing Receivable, Recorded Investment | |||
Total gross loans and leases receivable | $ 0 | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Deposits [Line Items] | ||
Deposits | $ 1,581,588 | $ 1,577,231 |
Average balance, deposits | $ 1,607,886 | $ 1,496,982 |
Deposits, weighted average interest rate during the period | 0.76% | 0.73% |
Non-interest-bearing transaction accounts | ||
Deposits [Line Items] | ||
Deposits | $ 236,662 | $ 231,199 |
Average balance, deposits | $ 228,294 | $ 211,945 |
Deposits, weighted average interest rate during the period | 0.00% | 0.00% |
Interest-bearing transaction accounts | ||
Deposits [Line Items] | ||
Deposits | $ 154,351 | $ 165,921 |
Average balance, deposits | $ 162,793 | $ 125,558 |
Deposits, weighted average interest rate during the period | 0.22% | 0.24% |
Money market accounts | ||
Deposits [Line Items] | ||
Deposits | $ 646,336 | $ 612,642 |
Average balance, deposits | $ 646,362 | $ 602,842 |
Deposits, weighted average interest rate during the period | 0.51% | 0.55% |
Certificates of deposit | ||
Deposits [Line Items] | ||
Deposits | $ 68,284 | $ 79,986 |
Average balance, deposits | $ 73,163 | $ 106,177 |
Deposits, weighted average interest rate during the period | 0.80% | 0.78% |
Wholesale deposits | ||
Deposits [Line Items] | ||
Deposits | $ 475,955 | $ 487,483 |
Average balance, deposits | $ 497,274 | $ 450,460 |
Deposits, weighted average interest rate during the period | 1.60% | 1.43% |
FHLB Advances, Other Borrowin57
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Composition of Borrowed Funds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 45,004 | $ 44,730 |
Borrowed funds, average balance | $ 44,534 | $ 49,705 |
Borrowed funds, interest rate during period | 6.75% | 5.94% |
Long-term borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 38,094 | $ 37,720 |
Short-term borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | 6,910 | 7,010 |
Federal funds purchased | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | 0 | 0 |
Borrowed funds, average balance | $ 0 | $ 237 |
Borrowed funds, interest rate during period | 0.00% | 0.86% |
FHLB advances and other borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 8,646 | $ 9,790 |
Borrowed funds, average balance | $ 9,033 | $ 15,457 |
Borrowed funds, interest rate during period | 2.00% | 1.14% |
Senior line of credit | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 3,910 | $ 2,510 |
Borrowed funds, average balance | $ 3,064 | $ 1,619 |
Borrowed funds, interest rate during period | 3.22% | 3.18% |
Subordinated notes payable | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 22,455 | $ 22,440 |
Borrowed funds, average balance | $ 22,446 | $ 22,410 |
Borrowed funds, interest rate during period | 7.14% | 7.14% |
Junior subordinated notes | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 9,993 | $ 9,990 |
Borrowed funds, average balance | $ 9,991 | $ 9,982 |
Borrowed funds, interest rate during period | 11.09% | 11.14% |
FHLB Advances, Other Borrowin58
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Narrative Disclosures) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Senior line of credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit - unused line fee | $ 3,000 | $ 3,000 |
Fair Value Disclosures (Measure
Fair Value Disclosures (Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Liabilities measured on a recurring basis, fair value | $ 1,139 | $ 552 |
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 | 1,139 | 552 |
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 | 1,139 | 552 |
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 | 1,139 | 552 |
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 | 5,194 | 4,283 |
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 | 5,194 | 4,283 |
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 | 1,219 | 1,269 |
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 | 1,219 | 1,269 |
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 | 8,067 | 8,017 |
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 | 8,067 | 8,017 |
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 | 40,381 | 44,543 |
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 | 40,381 | 44,543 |
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 | 85,962 | 82,436 |
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 | 85,962 | 82,436 |
Collateralized mortgage obligations - government-sponsored enterprises | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets measured on a recurring basis, fair value | $ 0 | $ 0 |
Fair Value Disclosures (Measu60
Fair Value Disclosures (Measured on a Non-Recurring Basis) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)foreclosed_property | Dec. 31, 2015USD ($)foreclosed_property | |
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ||
Total gains (losses) on impaired loans | $ 0 | $ 0 |
Total gains (losses) on foreclosed properties | 0 | (36) |
Total gains (losses) on servicing assets | 0 | 0 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ||
Assets measured on a non-recurring basis, fair value | 14,314 | 17,763 |
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 | 12,601 | 11,518 |
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 | 1,713 | 6,245 |
Foreclosed properties | ||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ||
Assets measured on a non-recurring basis, fair value | 1,677 | 1,677 |
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 | $ 1,677 |
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 | |
Assets, Fair Value Disclosure, Nonrecurring, Number of Assets | foreclosed_property | 0 | 0 |
Loan servicing rights | ||
Fair Value, Assets and Liabilities Measured on a Nonrecurring Basis | ||
Assets measured on a non-recurring basis, fair value | $ 1,692 | $ 1,563 |
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 | $ 1,692 | $ 1,563 |
Fair Value Disclosures (Foreclo
Fair Value Disclosures (Foreclosed Properties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Foreclosed properties at the beginning of the period | $ 1,677 | $ 1,693 | $ 1,693 |
Foreclosed properties acquired in acquisition, at fair value | 0 | 0 | |
Loans transferred to foreclosed properties, at lower of cost or fair value | 0 | 341 | |
Proceeds from sale of foreclosed properties | 0 | $ (143) | (528) |
Net gain on sale of foreclosed properties | 0 | 207 | |
Impairment valuation | 0 | (36) | |
Foreclosed properties at the end of the period | $ 1,677 | $ 1,677 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value by Balance Sheet Groupings) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||||
Cash and cash equivalents, carrying amount | $ 104,854 | $ 113,564 | $ 141,887 | $ 103,237 |
Securities available-for-sale, carrying amount | 140,823 | 140,548 | ||
Securities held-to-maturity, carrying amount | 36,485 | 37,282 | ||
Loans held for sale, carrying amount | 1,697 | 2,702 | ||
Loans and leases receivable, net amount, carrying amount | 1,431,902 | 1,414,649 | ||
Federal Home Loan Bank and Federal Reserve Bank stock, carrying amount | 2,734 | 2,843 | ||
Cash surrender value of life insurance, carrying amount | 28,541 | 28,298 | ||
Accrued interest receivable, carrying amount | 4,789 | 4,412 | ||
Interest rate swaps - assets, carrying amount | 1,139 | 552 | ||
Cash and cash equivalents, fair value | 104,858 | 113,564 | ||
Securities available-for-sale, fair value | 140,823 | 140,548 | ||
Held-to-maturity Securities, fair value | 37,213 | 37,558 | ||
Loans Held-for-sale, Fair Value Disclosure | 1,697 | 2,702 | ||
Loans and lease receivables, net, fair value | 1,460,700 | 1,445,773 | ||
Federal Home Loan Bank and Federal Reserve Bank stock, fair value | 2,734 | 2,843 | ||
Cash surrender value of life insurance, fair value | 28,541 | 28,298 | ||
Accrued interest receivable, fair value | 4,789 | 4,412 | ||
Interest rate swaps - assets, fair value | 1,139 | 552 | ||
Financial liabilities: | ||||
Deposits, carrying amount | 1,581,588 | 1,577,231 | ||
Federal Home Loan Bank and other borrowings, carrying amount | 35,011 | 34,740 | ||
Junior subordinated notes, carrying amount | 9,993 | 9,990 | ||
Interest rate swaps - liabilities, carrying amount | 1,139 | 552 | ||
Accrued interest payable, carrying amount | 1,937 | 1,766 | ||
Standby letters of credit, carrying amount | 65 | 183 | ||
Deposits, fair value | 1,586,447 | 1,577,838 | ||
Federal Home Loan Bank and other borrowings fair value | 35,841 | 35,353 | ||
Junior subordinated notes, fair value | 6,613 | 6,614 | ||
Interest rate swaps - liabilities, fair value | 1,139 | 552 | ||
Accrued interest payable, fair value | 1,937 | 1,766 | ||
Standby letters of credit, fair value | 65 | 183 | ||
Fair Value Measurements - Level 1 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, fair value | 89,259 | 100,063 | ||
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 | 28,541 | 28,298 | ||
Accrued interest receivable, fair value | 4,789 | 4,412 | ||
Interest rate swaps - assets, fair value | 0 | 0 | ||
Financial liabilities: | ||||
Deposits, fair value | 1,037,349 | 1,009,762 | ||
Federal Home Loan Bank and other borrowings fair value | 0 | 0 | ||
Junior subordinated notes, fair value | 0 | 0 | ||
Interest rate swaps - liabilities, fair value | 0 | 0 | ||
Accrued interest payable, fair value | 1,937 | 1,766 | ||
Standby letters of credit, fair value | 0 | 0 | ||
Fair Value Measurements - Level 2 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, fair value | 4,699 | 4,451 | ||
Securities available-for-sale, fair value | 140,823 | 140,548 | ||
Held-to-maturity Securities, fair value | 37,213 | 37,558 | ||
Loans Held-for-sale, Fair Value Disclosure | 1,697 | 2,702 | ||
Loans and lease receivables, net, fair value | 12,601 | 11,518 | ||
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 - assets, fair value | 1,139 | 552 | ||
Financial liabilities: | ||||
Deposits, fair value | 549,098 | 568,076 | ||
Federal Home Loan Bank and other borrowings fair value | 35,841 | 35,353 | ||
Junior subordinated notes, fair value | 0 | 0 | ||
Interest rate swaps - liabilities, fair value | 1,139 | 552 | ||
Accrued interest payable, fair value | 0 | 0 | ||
Standby letters of credit, fair value | 0 | 0 | ||
Fair Value Measurements - Level 3 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, fair value | 10,900 | 9,050 | ||
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 | 1,448,099 | 1,434,255 | ||
Federal Home Loan Bank and Federal Reserve Bank stock, fair value | 2,734 | 2,843 | ||
Cash surrender value of life insurance, fair value | 0 | 0 | ||
Accrued interest receivable, fair value | 0 | 0 | ||
Interest rate swaps - assets, fair value | 0 | 0 | ||
Financial liabilities: | ||||
Deposits, fair value | 0 | 0 | ||
Federal Home Loan Bank and other borrowings fair value | 0 | 0 | ||
Junior subordinated notes, fair value | 6,613 | 6,614 | ||
Interest rate swaps - liabilities, fair value | 0 | 0 | ||
Accrued interest payable, fair value | 0 | 0 | ||
Standby letters of credit, fair value | $ 65 | $ 183 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative Disclosures) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016USD ($)foreclosed_property | Dec. 31, 2015USD ($)foreclosed_property | |
Fair Value Inputs, Assets, Quantitative Information | ||
Fair value, assets, level 1 to level 2 transfers | $ 0 | $ 0 |
Fair value, assets, level 2 to Level 1 transfers | 0 | 0 |
Fair value, assets, transfers into level 3 | 0 | 0 |
Fair value, assets, transfers out of level 3 | 0 | 0 |
Fair value, liabilities, level 1 to level 2 transfers | 0 | 0 |
Fair value, liabilities, level 2 to level 1 transfers | 0 | 0 |
Fair value, liabilities, transfers into level 3 | 0 | 0 |
Fair value, liabilities, transfers out of level 3 | 0 | 0 |
Impairment of Real Estate | 0 | 36,000 |
Commercial paper, at carrying value | 10,900,000 | 9,100,000 |
Certificates of deposit, at carrying value | $ 4,700,000 | 4,500,000 |
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 | 93.00% | |
Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Quantification of unobservable inputs for level 3 values for impaired loans | 29.00% | |
Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets measured on a non-recurring basis, fair value | $ 14,314,000 | 17,763,000 |
Loan servicing rights | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets measured on a non-recurring basis, fair value | 1,692,000 | 1,563,000 |
Foreclosed properties | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets measured on a non-recurring basis, fair value | 1,677,000 | 1,677,000 |
Fair Value Measurements - Level 3 Inputs | Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets measured on a non-recurring basis, fair value | 1,713,000 | 6,245,000 |
Fair Value Measurements - Level 3 Inputs | Loan servicing rights | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets measured on a non-recurring basis, fair value | 1,692,000 | $ 1,563,000 |
Fair Value Measurements - Level 3 Inputs | Foreclosed properties | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets measured on a non-recurring basis, fair value | $ 0 | |
Assets, fair value disclosure, nonrecurring, number of foreclosed properties | foreclosed_property | 0 | 0 |
Derivative Financial Instrume64
Derivative Financial Instruments (Location and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivatives not designated as hedging instruments, fair value | |||
Interest rate swap contracts not designated as hedging instruments - assets, gross | $ 1,139 | $ 552 | |
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | $ 1,139 | $ 552 | |
Accrued interest receivable and 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 | Accrued interest receivable and other assets | Accrued interest receivable and other assets | |
Accrued interest payable and 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 | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities |
Derivative Financial Instrume65
Derivative Financial Instruments (Narrative Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Derivatives | ||
Derivative Instruments in Hedges, at Fair Value, Net | $ 0 | |
Interest rate swap contracts not designated as hedging instruments - assets, gross | 1,139 | $ 552 |
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 1,139 | $ 552 |
Derivative asset, fair value, amount offset against collateral | $ 0 | |
Interest rate derivatives, line item on income statement for gain (loss) | other non-interest income | |
To commercial borrowers, corporation receives fixed rates and pays floating rates | ||
Derivatives | ||
Interest rate swap contracts not designated as hedging instruments - assets, gross | $ 1,139 | |
To commercial borrowers, corporation receives fixed rates and pays floating rates | Minimum | ||
Derivatives | ||
Derivative, maturity date | Aug. 29, 2018 | |
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 swap contracts not designated as hedging instruments - liabilities, gross | $ 1,139 | |
Interest rate derivative instruments not designated as hedging instruments at fair value, net | $ 1,139 | |
To dealer countparties, corporation pays fixed rates and receives floating rates | Minimum | ||
Derivatives | ||
Derivative, maturity date | Aug. 29, 2018 | |
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 | ||
Notional value of interest rate swaps with various commercial borrowers | $ 23,300 | |
Not Designated as Hedging Instrument | To dealer countparties, corporation pays fixed rates and receives floating rates | ||
Derivatives | ||
Notional value of interest rate swaps with various commercial borrowers | $ 23,300 |
Regulatory Capital (Regulatory
Regulatory Capital (Regulatory Capital Ratios) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total capital | $ 192,670 | $ 189,163 |
Total capital to risk-weighted assets | 11.24% | 11.11% |
Total capital, Minimum Required for Capital Adequacy Purposes | $ 137,131 | $ 136,208 |
Total capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Tier 1 capital | $ 153,531 | $ 149,920 |
Tier 1 capital to risk-weighted assets | 8.96% | 8.81% |
Tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 102,848 | $ 102,156 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 6.00% |
Common equity tier 1 capital | $ 143,531 | $ 139,920 |
Common equity tier 1 capital to risk-weighted assets | 8.37% | 8.22% |
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 77,136 | $ 76,617 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Tier 1 capital | $ 153,531 | $ 149,920 |
Tier 1 leverage capital to average assets | 8.44% | 8.63% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | $ 72,805 | $ 69,466 |
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 | $ 145,732 | $ 141,388 |
Total capital to risk-weighted assets | 11.43% | 11.12% |
Total capital, Minimum Required for Capital Adequacy Purposes | $ 102,002 | $ 101,754 |
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 | $ 127,502 | $ 127,193 |
Total capital to risk-weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 capital | $ 132,943 | $ 128,852 |
Tier 1 capital to risk-weighted assets | 10.43% | 10.13% |
Tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 76,501 | $ 76,316 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 6.00% |
Tier 1 capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 102,002 | $ 101,754 |
Tier 1 capital to risk weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 8.00% | 8.00% |
Common equity tier 1 capital | $ 132,943 | $ 128,852 |
Common equity tier 1 capital to risk-weighted assets | 10.43% | 10.13% |
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 57,376 | $ 57,237 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Common equity tier 1 capital, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | $ 82,877 | $ 110,669 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | 6.50% | 6.50% |
Tier 1 capital | $ 132,943 | $ 128,852 |
Tier 1 leverage capital to average assets | 10.30% | 10.44% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | $ 51,647 | $ 49,359 |
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 | $ 64,559 | $ 61,698 |
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 | $ 21,170 | $ 20,931 |
Total capital to risk-weighted assets | 11.74% | 12.03% |
Total capital, Minimum Required for Capital Adequacy Purposes | $ 14,425 | $ 13,914 |
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 | $ 18,032 | $ 17,392 |
Total capital to risk-weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 capital | $ 19,350 | $ 19,172 |
Tier 1 capital to risk-weighted assets | 10.73% | 11.02% |
Tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 10,819 | $ 10,435 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 6.00% |
Tier 1 capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 14,425 | $ 13,914 |
Tier 1 capital to risk weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 8.00% | 8.00% |
Common equity tier 1 capital | $ 19,350 | $ 19,172 |
Common equity tier 1 capital to risk-weighted assets | 10.73% | 11.02% |
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 8,114 | $ 7,826 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Common equity tier 1 capital, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | $ 11,721 | $ 82,675 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | 6.50% | 6.50% |
Tier 1 capital | $ 19,350 | $ 19,172 |
Tier 1 leverage capital to average assets | 7.38% | 7.81% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | $ 10,485 | $ 9,821 |
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 | $ 13,106 | $ 12,276 |
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 | $ 31,464 | $ 30,300 |
Total capital to risk-weighted assets | 12.37% | 11.39% |
Total capital, Minimum Required for Capital Adequacy Purposes | $ 20,345 | $ 21,279 |
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 | $ 25,432 | $ 26,598 |
Total capital to risk-weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 capital | $ 29,390 | $ 28,278 |
Tier 1 capital to risk-weighted assets | 11.56% | 10.63% |
Tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 15,259 | $ 15,959 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 6.00% |
Tier 1 capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 20,345 | $ 21,279 |
Tier 1 capital to risk weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 8.00% | 8.00% |
Common equity tier 1 capital | $ 29,390 | $ 28,278 |
Common equity tier 1 capital to risk-weighted assets | 11.56% | 10.63% |
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 11,444 | $ 11,969 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Common equity tier 1 capital, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | $ 16,530 | $ 11,305 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | 6.50% | 6.50% |
Tier 1 capital | $ 29,390 | $ 28,278 |
Tier 1 leverage capital to average assets | 9.45% | 9.89% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | $ 12,440 | $ 11,441 |
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 | $ 15,551 | $ 14,301 |
Tier 1 leverage capital to average assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 5.00% | 5.00% |
Regulatory Capital (Narrative D
Regulatory Capital (Narrative Disclosures) (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Description of possible effects of noncompliance or less than adequately capitalized | Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Banks’ assets, liabilities and certain off-balance-sheet items as calculated under regulatory practices. |
Capital Conservation Buffer, Initial Phase In Percent | 0.625% |
Capital Conservation Buffer, Yearly Phase-In Percent Increase | 0.625% |
Capital Conservation Buffer, Fully Phased-In Percent | 2.50% |