Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 18, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'CHEMICAL FINANCIAL CORP | ' |
Entity Central Index Key | '0000019612 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,760,588 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Cash and cash equivalents: | ' | ' | ' |
Cash and cash due from banks | $139,023 | $130,811 | $137,586 |
Interest-bearing deposits with the Federal Reserve Bank | 1,271 | 179,977 | 69,371 |
Total cash and cash equivalents | 140,294 | 310,788 | 206,957 |
Investment securities: | ' | ' | ' |
Available-for-sale, at fair value | 615,975 | 684,570 | 734,052 |
Held-to-maturity (fair value - $303,961 at June 30, 2014, $268,271 at December 31, 2013 and $271,397 at June 30, 2013) | 308,130 | 273,905 | 274,715 |
Total investment securities | 924,105 | 958,475 | 1,008,767 |
Loans held-for-sale, at fair value | 6,329 | 5,219 | 9,180 |
Loans | 4,898,804 | 4,647,621 | 4,335,871 |
Allowance for loan losses | -77,793 | -79,072 | -82,184 |
Net loans | 4,821,011 | 4,568,549 | 4,253,687 |
Premises and equipment (net of accumulated depreciation of $104,225 at June 30, 2014, $100,261 at December 31, 2013 and $96,036 at June 30, 2013) | 74,291 | 75,308 | 73,379 |
Goodwill | 120,164 | 120,164 | 120,164 |
Other intangible assets | 12,454 | 13,424 | 14,354 |
Interest receivable and other assets | 133,327 | 132,781 | 119,723 |
Total Assets | 6,231,975 | 6,184,708 | 5,806,211 |
Deposits: | ' | ' | ' |
Noninterest-bearing | 1,283,439 | 1,227,768 | 1,107,453 |
Interest-bearing | 3,809,474 | 3,894,617 | 3,706,732 |
Total deposits | 5,092,913 | 5,122,385 | 4,814,185 |
Interest payable and other liabilities | 40,142 | 38,395 | 35,460 |
Short-term borrowings | 305,422 | 327,428 | 346,995 |
Total liabilities | 5,438,477 | 5,488,208 | 5,196,640 |
Shareholders’ equity: | ' | ' | ' |
Preferred stock, no par value: Authorized - 200,000 shares, none issued | 0 | 0 | 0 |
Issued and outstanding — 32,760,088 shares at June 30, 2014, 29,789,825 shares at December 31, 2013 and 27,537,554 shares at June 30, 2013 | 32,760 | 29,790 | 27,538 |
Additional paid-in capital | 563,393 | 488,177 | 434,479 |
Retained earnings | 215,333 | 199,053 | 182,619 |
Accumulated other comprehensive loss | -17,988 | -20,520 | -35,065 |
Total shareholders’ equity | 793,498 | 696,500 | 609,571 |
Total Liabilities and Shareholders’ Equity | $6,231,975 | $6,184,708 | $5,806,211 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | |||
Held-to-maturity, fair value | $303,961 | $268,271 | $271,397 |
Accumulated depreciation of premises and equipment | $104,225 | $100,261 | $96,036 |
Preferred stock, no par value | ' | ' | ' |
Preferred stock, shares authorized | 200,000 | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value | $1 | $1 | $1 |
Common stock, shares authorized | 45,000,000 | 45,000,000 | 45,000,000 |
Common stock, shares issued | 32,760,088 | 29,789,825 | 27,537,554 |
Common stock, shares outstanding | 32,760,088 | 29,789,825 | 27,537,554 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest Income | ' | ' | ' | ' |
Interest and fees on loans | $50,751 | $48,029 | $99,946 | $95,934 |
Interest on investment securities: | ' | ' | ' | ' |
Taxable | 2,248 | 2,585 | 4,631 | 5,023 |
Tax-exempt | 1,671 | 1,587 | 3,375 | 3,151 |
Dividends on nonmarketable equity securities | 411 | 400 | 649 | 551 |
Interest on deposits with the Federal Reserve Bank | 99 | 180 | 224 | 501 |
Total interest income | 55,180 | 52,781 | 108,825 | 105,160 |
Interest Expense | ' | ' | ' | ' |
Interest on deposits | 3,626 | 4,264 | 7,371 | 8,830 |
Interest on short-term borrowings | 94 | 121 | 215 | 235 |
Interest on Federal Home Loan Bank (FHLB) advances | 0 | 0 | 0 | 47 |
Total interest expense | 3,720 | 4,385 | 7,586 | 9,112 |
Net Interest Income | 51,460 | 48,396 | 101,239 | 96,048 |
Provision for loan losses | 1,500 | 3,000 | 3,100 | 6,000 |
Net interest income after provision for loan losses | 49,960 | 45,396 | 98,139 | 90,048 |
Noninterest Income | ' | ' | ' | ' |
Service charges and fees on deposit accounts | 5,486 | 5,535 | 10,416 | 10,730 |
Wealth management revenue | 3,958 | 3,879 | 7,589 | 7,324 |
Other charges and fees for customer services | 4,682 | 4,303 | 8,876 | 8,954 |
Mortgage banking revenue | 1,491 | 1,649 | 2,285 | 3,661 |
Gain on sale of investment securities | 0 | 257 | 0 | 1,104 |
Other | 184 | 325 | 351 | 414 |
Total noninterest income | 15,801 | 15,948 | 29,517 | 32,187 |
Operating Expenses | ' | ' | ' | ' |
Salaries, wages and employee benefits | 24,860 | 24,628 | 49,044 | 47,997 |
Occupancy | 3,638 | 3,380 | 8,012 | 7,043 |
Equipment and software | 3,792 | 3,447 | 7,253 | 6,897 |
Other | 10,135 | 9,586 | 20,298 | 21,061 |
Total operating expenses | 42,425 | 41,041 | 84,607 | 82,998 |
Income before income taxes | 23,336 | 20,303 | 43,049 | 39,237 |
Federal income tax expense | 7,100 | 6,100 | 13,000 | 11,800 |
Net Income | $16,236 | $14,203 | $30,049 | $27,437 |
Net Income Per Common Share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.54 | $0.52 | $1 | $1 |
Diluted (in dollars per share) | $0.54 | $0.51 | $1 | $0.99 |
Cash Dividends Declared Per Common Share (dollars per share) | $0.23 | $0.21 | $0.46 | $0.42 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $16,236 | $14,203 | $30,049 | $27,437 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Net unrealized gains (losses) on investment securities available-for-sale, net of tax expense (benefit) of $909 and $(2,714) for the three months ended June 30, 2014 and 2013, respectively, and $1,766 and $(2,487) for the six months ended June 30, 2014 and 2013, respectively | 1,687 | -5,041 | 3,280 | -4,621 |
Reclassification adjustment for realized gain on sale of investment securities available-for-sale included in net income, net of tax expense of $4 for the three months ended June 30, 2013 and $300 for the six months ended June 30, 2013 | 0 | -7 | 0 | -558 |
Adjustment for pension and other postretirement benefits, net of tax expense (benefit) of $(202) and $332 for the three months ended June 30, 2014 and 2013, respectively, and $(403) and $664 for the six months ended June 30, 2014 and 2013, respectively | -374 | 617 | -748 | 1,233 |
Total other comprehensive income, net of tax | 1,313 | -4,431 | 2,532 | -3,946 |
Comprehensive income | $17,549 | $9,772 | $32,581 | $23,491 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Tax expense (benefit) on net unrealized gains (losses) on investment securities available-for-sale | $908 | ($2,714) | $1,765 | ($2,487) |
Tax expense (benefit) on reclassification adjustment for realized gains on sale of investment securities available-for-sale | 0 | -4 | 0 | -300 |
Tax expense (benefit) on adjustment for pension and other postretirement benefits | ($202) | $332 | ($403) | $664 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2012 | $596,341 | $27,499 | $433,195 | $166,766 | ($31,119) |
Changes in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Comprehensive income | 23,491 | ' | ' | 27,437 | -3,946 |
Cash dividends declared per share: $0.42 and $0.46 per share for the six months ended June 30, 2013 and June 30, 2014, respectively | -11,584 | ' | ' | -11,584 | ' |
Stock issued - stock options | 16 | 3 | 13 | ' | ' |
Shares issued – directors’ stock plans | 305 | 13 | 292 | ' | ' |
Shares issued – restricted stock units | -379 | 23 | -402 | ' | ' |
Share-based compensation | 1,381 | ' | 1,381 | ' | ' |
Ending Balance at Jun. 30, 2013 | 609,571 | 27,538 | 434,479 | 182,619 | -35,065 |
Beginning Balance at Dec. 31, 2013 | 696,500 | 29,790 | 488,177 | 199,053 | -20,520 |
Changes in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Comprehensive income | 32,581 | ' | ' | 30,049 | 2,532 |
Cash dividends declared per share: $0.42 and $0.46 per share for the six months ended June 30, 2013 and June 30, 2014, respectively | -13,769 | ' | ' | -13,769 | ' |
Issuance of common stock, net of issuance costs | 76,175 | 2,875 | 73,300 | ' | ' |
Stock issued - stock options | 854 | 41 | 813 | ' | ' |
Shares issued – directors’ stock plans | 468 | 18 | 450 | ' | ' |
Shares issued – restricted stock units | -484 | 36 | -520 | ' | ' |
Share-based compensation | 1,173 | ' | 1,173 | ' | ' |
Ending Balance at Jun. 30, 2014 | $793,498 | $32,760 | $563,393 | $215,333 | ($17,988) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash dividends declared per share | $0.23 | $0.21 | $0.46 | $0.42 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating Activities | ' | ' |
Net income | $30,049 | $27,437 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for loan losses | 3,100 | 6,000 |
Gains on sales of loans | -1,680 | -4,565 |
Proceeds from sales of loans | 59,490 | 134,908 |
Loans originated for sale | -58,920 | -121,858 |
Net gains on sales of other real estate and repossessed assets | -856 | -1,009 |
Depreciation of premises and equipment | 4,238 | 4,373 |
Amortization of intangible assets | 1,391 | 1,994 |
Gain on sale of investment securities | 0 | -1,104 |
Net amortization of premiums and discounts on investment securities | 2,129 | 1,954 |
Share-based compensation expense | 1,173 | 1,381 |
Contributions to defined benefit pension plan | 0 | -15,000 |
Net (increase) decrease in interest receivable and other assets | -1,503 | 9,425 |
Net increase (decrease) in interest payable and other liabilities | 754 | -2,360 |
Net cash provided by operating activities | 39,365 | 41,576 |
Investment securities – available-for-sale: | ' | ' |
Proceeds from sales | 0 | 38,028 |
Proceeds from maturities, calls and principal reductions | 71,919 | 82,474 |
Purchases | 0 | -276,460 |
Investment securities – held-to-maturity: | ' | ' |
Proceeds from maturities, calls and principal reductions | 66,230 | 38,298 |
Purchases | -100,862 | -83,137 |
Net increase in loans | -260,201 | -179,526 |
Proceeds from sales of other real estate and repossessed assets | 4,879 | 8,902 |
Purchases of premises and equipment and branch bank property, net of disposals | -3,221 | -2,676 |
Net cash used in investing activities | -221,256 | -374,097 |
Financing Activities | ' | ' |
Net increase (decrease) in interest- and noninterest-bearing demand deposits and savings accounts | 23,559 | -14,620 |
Net decrease in time deposits | -53,031 | -92,638 |
Net increase (decrease) in short-term borrowings | -22,006 | 36,532 |
Repayment of FHLB advances | 0 | -34,289 |
Cash dividends paid | -13,769 | -11,584 |
Proceeds from issuance of common stock, net of issuance costs | 76,175 | 0 |
Proceeds from directors’ stock plans and exercise of stock options, net of shares withheld | 1,163 | 321 |
Cash paid for payroll taxes upon conversion of restricted stock units | -694 | -379 |
Net cash provided by (used in) financing activities | 11,397 | -116,657 |
Net decrease in cash and cash equivalents | -170,494 | -449,178 |
Cash and cash equivalents at beginning of period | 310,788 | 656,135 |
Cash and cash equivalents at end of period | 140,294 | 206,957 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Interest paid | 7,719 | 9,528 |
Loans transferred to other real estate and repossessed assets | 4,639 | 3,083 |
Closed branch offices transferred to other real estate | 0 | 382 |
Income Taxes Paid, Net | $12,900 | $5,700 |
Significant_Accounting_Policie
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
Nature of Operations | |
Chemical Financial Corporation (Corporation) operates in a single operating segment — commercial banking. The Corporation is a financial holding company, headquartered in Midland, Michigan, that operates through one commercial bank, Chemical Bank. Chemical Bank operates within the State of Michigan as a state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of four regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the bank’s geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation’s regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is uniform throughout the Corporation’s regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products. | |
The Corporation’s primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements of the Corporation and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
Use of Estimates | |
Management makes estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, expected cash flows from acquired loans, fair value amounts related to business combinations, pension expense, income taxes, goodwill impairment and those assets that require fair value measurement. Actual results could differ from these estimates. | |
Originated Loans | |
Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on April 30, 2010 in the acquisition of O.A.K. Financial Corporation (OAK). Originated loans also include loans acquired as part of the Corporation's branch acquisition on December 7, 2012, as these loans were performing and were considered high-quality loans in accordance with the Corporation's credit underwriting standards at that date. Originated loans are stated at their principal amount outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Loan interest income is recognized on the accrual basis. Deferred loan fees and costs are amortized over the loan term based on the level-yield method. Net loan commitment fees are deferred and amortized into fee income on a straight-line basis over the commitment period. | |
The past due status of a loan is based on the loan’s contractual terms. A loan is placed in nonaccrual status (accrual of interest is discontinued) when principal or interest is past due 90 days or more (except for a loan that is secured by residential real estate, which is transferred to nonaccrual status at 120 days past due), unless the loan is both well-secured and in the process of collection, or earlier when, in the opinion of management, there is sufficient reason to doubt the collectibility of principal or interest. Interest previously accrued, but not collected, is reversed and charged against interest income at the time the loan is placed in nonaccrual status. Subsequent receipts of interest while a loan is in nonaccrual status are recorded as a reduction of principal. Loans are returned to accrual status when principal and interest payments are brought current, payments have been received consistently for a period of time (generally six months) and collectibility is no longer in doubt. | |
Loans Acquired in a Business Combination | |
Loans acquired in a business combination (acquired loans) consist of loans acquired on April 30, 2010 in the acquisition of OAK. Acquired loans were recorded at fair value at the date of acquisition, without a carryover of the associated allowance for loan losses related to these loans, through a fair value discount that was, in part, attributable to deterioration in credit quality. The estimate of expected credit losses was determined based on due diligence performed by executive and senior officers of the Corporation, with assistance from third-party consultants. The fair value discount was recorded as a reduction of the acquired loans’ outstanding principal balances in the consolidated statement of financial position at the acquisition date. | |
The Corporation accounts for acquired loans, which are recorded at fair value at acquisition, in accordance with Accounting Standards Codification (ASC) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). ASC 310-30 allows investors to aggregate loans acquired into loan pools that have common risk characteristics and thereby use a composite interest rate and expectation of cash flows expected to be collected for the loan pools. Under the provisions of ASC 310-30, the Corporation aggregated acquired loans into 14 pools based upon common risk characteristics, including types of loans, commercial type loans with similar risk grades and whether loans were performing or nonperforming. A pool is considered a single unit of accounting for purposes of applying the guidance prescribed in ASC 310-30. A loan will be removed from a pool of acquired loans only if the loan is sold, foreclosed, paid off or written off, and will be removed from the pool at the carrying value. If an individual loan is removed from a pool of loans, the difference between its relative carrying amount and the cash, fair value of the collateral, or other assets received would not affect the effective yield used to recognize the accretable difference on the remaining pool. The Corporation estimated the cash flows expected to be collected over the life of the pools of loans at acquisition, and estimates expected cash flows quarterly thereafter, based on a set of assumptions including expectations as to default rates, prepayment rates and loss severities. The Corporation must make numerous assumptions, interpretations and judgments using internal and third-party credit quality information to determine whether it is probable that the Corporation will be able to collect all contractually required payments. This is a point in time assessment and inherently subjective due to the nature of the available information and judgment involved. | |
The calculation of the fair value of the acquired loan pools entails estimating the amount and timing of cash flows attributable to both principal and interest expected to be collected on such loan pools and then discounting those cash flows at market interest rates. The excess of a loan pool's expected cash flows at the acquisition date over its estimated fair value is referred to as the "accretable yield," which is recognized into interest income over the estimated remaining life of the loan pool on a level-yield basis. The difference between a loan pool's contractually required principal and interest payments at the acquisition date and the cash flows expected to be collected at the acquisition date is referred to as the "nonaccretable difference," which includes an estimate of future credit losses expected to be incurred over the estimated life of the loan pool and interest payments that are not expected to be collected. Decreases to the expected cash flows in each loan pool in subsequent periods will require the Corporation to record a provision for loan losses. Improvements in expected cash flows in each loan pool in subsequent periods will result in reversing a portion of the nonaccretable difference, which is then classified as part of the accretable yield and subsequently recognized into interest income over the estimated remaining life of the loan pool. | |
Loans Modified Under Troubled Debt Restructurings | |
Loans modified under troubled debt restructurings (TDRs) involve granting a concession to a borrower who is experiencing financial difficulty. Concessions generally include modifications to original loan terms, including changes to a loan’s payment schedule or interest rate, which generally would not otherwise be considered. The Corporation’s TDRs include performing and nonperforming TDRs, which consist of originated loans that continue to accrue interest at the loan's original interest rate as the Corporation expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include originated loans that are in a nonaccrual status and are no longer accruing interest, as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans. At the time of modification (except for loans on nonaccrual status), a TDR is reported as a nonperforming TDR until a six-month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the Corporation moves the loan to a performing status (performing TDR). If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the Corporation’s analysis of the allowance for loan losses. A TDR that has been refinanced by a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a refinancing is no longer reported as a TDR. | |
Loans in the Corporation’s commercial loan portfolio (comprised of commercial, commercial real estate, real estate construction and land development loans) that meet the definition of a TDR generally consist of loans where the Corporation has allowed borrowers to defer scheduled principal payments and make interest-only payments for a specified period of time at the stated interest rate of the original loan agreement or reduced payments due to a moderate extension of the loan’s contractual term. If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. If the Corporation does not expect to incur a loss on the loan based on its assessment of the borrowers’ expected cash flows, as the pre- and post-modification effective yields are approximately the same, the loan is classified as a nonperforming TDR until a six-month payment history is sustained, at which time the loan is classified as a performing TDR. Since no loss is expected to be incurred on these loans, no additional provision for loan losses has been recognized related to these loans, and these loans accrue interest at their contractual interest rate. These loans are individually evaluated for impairment and transferred to nonaccrual status if they become 90 days past due as to principal or interest payments or if it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the modified terms of the loans. | |
Loans in the Corporation’s consumer loan portfolio (comprised of residential mortgage, consumer installment and home equity loans) that meet the definition of a performing or nonperforming TDR generally consist of residential mortgage loans that include a concession that reduces a borrower’s monthly payments by decreasing the interest rate charged on the loan for a specified period of time (generally 24 months) under a formal modification agreement. The Corporation recognizes an additional provision for loan losses related to impairment on these loans on an individual basis based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. These loans continue to accrue interest at the loan's effective interest rate, which consists of contractual interest under the terms of the modification agreement in addition to an adjustment for the accretion of computed impairment. These loans are moved to nonaccrual status if they become 90 days past due as to principal or interest payments, or sooner if conditions warrant. | |
Impaired Loans | |
A loan is defined to be impaired when it is probable that payment of principal and interest will not be paid in accordance with the original contractual terms of the loan agreement. Impaired loans include nonaccrual loans (including nonaccrual TDRs), performing and nonperforming TDRs and acquired loans that were not performing in accordance with original contractual terms. Impaired loans are accounted for at the lower of the present value of expected cash flows discounted at the loan's original effective interest rate or the estimated fair value of the collateral, if the loan is collateral dependent. When the present value of expected cash flows or the fair value of collateral of an impaired loan in the originated loan portfolio is less than the amount of unpaid principal outstanding on the loan, the principal balance of the loan is reduced to its carrying value through either an allocation of the allowance for loan losses or a partial charge-off of the loan balance. | |
Nonperforming Loans | |
Nonperforming loans are comprised of loans for which the accrual of interest has been discontinued (nonaccrual loans, including nonaccrual TDRs), accruing originated loans contractually past due 90 days or more as to interest or principal payments and nonperforming TDRs. | |
Acquired loans that were classified as nonperforming loans prior to being acquired and acquired loans that are not performing in accordance with contractual terms subsequent to acquisition are not classified as nonperforming loans subsequent to acquisition because the loans are recorded in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans. | |
Allowance for Loan Losses | |
The allowance for loan losses (allowance) is presented as a reserve against loans. The allowance represents management’s assessment of probable loan losses inherent in the Corporation’s loan portfolio. | |
Management’s evaluation of the adequacy of the allowance is based on a continuing review of the loan portfolio, actual loan loss experience, the underlying value of the collateral, risk characteristics of the loan portfolio, the level and composition of nonperforming loans, the financial condition of the borrowers, the balance of the loan portfolio, loan growth, economic conditions, employment levels in the Corporation’s local markets, and special factors affecting specific business sectors. The Corporation maintains formal policies and procedures to monitor and control credit risk. Management evaluates the allowance on a quarterly basis in an effort to ensure the level is appropriate to absorb probable losses inherent in the loan portfolio. | |
The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be incurred in the remainder of the originated loan portfolio, but that have not been specifically identified. The Corporation utilizes its own loss experience to estimate inherent losses on loans. Internal risk ratings are assigned to each loan in the commercial loan portfolio (commercial, commercial real estate, real estate construction and land development loans) at the time of origination and are subject to subsequent periodic reviews by senior management. The Corporation performs a detailed credit quality review quarterly on all loans greater than $0.25 million that have deteriorated below certain levels of credit risk, and may allocate a specific portion of the allowance to such loans based upon this review. A portion of the allowance is allocated to the remaining loans by applying projected loss ratios, based on numerous factors. Projected loss ratios incorporate factors such as charge-off experience, trends with respect to adversely risk-rated loans in the commercial loan portfolio, trends with respect to past due and nonaccrual loans, changes in economic conditions and trends, changes in the value of underlying collateral and other credit risk factors. This evaluation involves a high degree of uncertainty. | |
In determining the allowance and the related provision for loan losses, the Corporation considers four principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired loans in the commercial loan portfolio, (ii) reserves established for adversely-rated loans in the commercial loan portfolio and nonaccrual residential mortgage, consumer installment and home equity loans based on loan loss experience of other adversely-rated loans, (iii) reserves, by loan classes, on all other loans based principally on a five-year historical loan loss experience, with higher weighting placed on the most recent years, and loan loss trends and (iv) an unallocated allowance based on the imprecision in the overall allowance methodology for loans collectively evaluated for impairment. | |
Although the Corporation allocates portions of the allowance to specific loans and loan types, the entire allowance attributable to originated loans is available for any loan losses that occur in the originated portfolio. Loans that are deemed not collectible are charged off and reduce the allowance. The provision for loan losses and recoveries on loans previously charged off increase the allowance. Collection efforts may continue and recoveries may occur after a loan is charged off. | |
Acquired loans are aggregated into pools based upon common risk characteristics. An allowance may be recorded related to an acquired loan pool if it experiences a decrease in expected cash flows, as compared to those projected at the acquisition date. On a quarterly basis, the expected future cash flow of each pool is estimated based on various factors, including changes in property values of collateral dependent loans, default rates, loss severities and prepayment speeds. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to acquired loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in a reduction in the allowance allocated to acquired loans for the particular pool, if applicable, and then an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in subsequent periods. | |
Various regulatory agencies, as an integral part of their examination process, periodically review the allowance. Such agencies may require additions to the allowance, based on their judgment, reflecting information available to them at the time of their examinations. | |
Fair Value Measurements | |
Fair value for assets and liabilities measured at fair value on a recurring or nonrecurring basis refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. | |
The Corporation may choose to measure eligible items at fair value at specified election dates. Unrealized gains and losses on items for which the fair value measurement option has been elected are reported in earnings at each subsequent reporting date. The fair value option (i) may be applied instrument by instrument, with certain exceptions, allowing the Corporation to record identical financial assets and liabilities at fair value or by another measurement basis permitted under GAAP, (ii) is irrevocable (unless a new election date occurs) and (iii) is applied only to entire instruments and not to portions of instruments. At June 30, 2014, December 31, 2013 and June 30, 2013, the Corporation had elected the fair value option on all of its residential mortgage loans held-for-sale. The Corporation has not elected the fair value option for any other financial assets or liabilities. | |
Share-Based Compensation | |
The Corporation grants stock options, stock awards, restricted stock performance units and restricted stock service-based units to certain executive and senior management employees. The Corporation accounts for share-based compensation expense using the modified-prospective transition method. Under that method, compensation expense is recognized for stock options based on the estimated grant date fair value as computed using the Black-Scholes option pricing model and the probability of issuance. The Corporation accounts for stock awards based on the closing stock price of the Corporation's common stock on the date of the award. The fair values of both stock options and stock awards are recognized as compensation expense on a straight-line basis over the requisite service period. The Corporation accounts for restricted stock performance units based on the closing stock price of the Corporation's common stock on the date of grant, discounted by the present value of estimated future dividends to be declared over the requisite performance or service period. The fair value of restricted stock performance units is recognized as compensation expense over the expected requisite performance period, or requisite service period for awards with multiple performance and service conditions. The Corporation accounts for restricted stock service-based units based on the closing stock price of the Corporation's common stock on the date of grant, as these awards accrue dividend equivalents equal to the amount of any cash dividends that would have been payable to a shareholder owning the number of shares of the Corporation's common stock represented by the restricted stock service-based units. The fair value of the restricted stock service-based units is recognized as compensation expense over the requisite service period. | |
Cash flows realized from the tax benefits of exercised stock option awards that result from actual tax deductions that are in excess of the recorded tax benefits related to the compensation expense recognized for those options (excess tax benefits) are classified as financing activities on the consolidated statements of cash flows. | |
Income and Other Taxes | |
The Corporation is subject to the income and other tax laws of the United States, the State of Michigan and other states where nexus has been created. These laws are complex and are subject to different interpretations by the taxpayer and the various taxing authorities. In determining the provision for income and other taxes, management must make judgments and estimates about the application of these inherently complex laws, related regulations and case law. In the process of preparing the Corporation’s tax returns, management attempts to make reasonable interpretations of enacted tax laws. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law. | |
On a quarterly basis, management assesses the reasonableness of its estimated annual effective federal tax rate based upon its current best estimate of taxable income and the applicable taxes expected for the full year. Deferred tax assets and liabilities are reassessed on a quarterly basis, including the need for a valuation allowance for deferred tax assets. | |
Uncertain income tax positions are evaluated to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the tax position. If a tax position is more-likely-than-not to be sustained, a tax benefit is recognized for the amount that is greater than 50% likely to be realized. Reserves for contingent income tax liabilities attributable to unrecognized tax benefits associated with uncertain tax positions are reviewed quarterly for adequacy based upon developments in tax law and the status of audits or examinations. The Corporation had no contingent income tax liabilities recorded at June 30, 2014, December 31, 2013 or June 30, 2013. The tax periods open to examination by the Internal Revenue Service include the calendar years ended December 31, 2013, 2012, 2011 and 2010. | |
Shareholders’ Equity | |
Common Stock Repurchase Programs | |
From time to time, the board of directors of the Corporation approves common stock repurchase programs allowing management to repurchase shares of the Corporation’s common stock in the open market. The repurchased shares are available for later reissuance in connection with potential future stock dividends, the Corporation’s dividend reinvestment plan, employee benefit plans and other general corporate purposes. Under these programs, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, including the projected parent company cash flow requirements and the Corporation’s market price per share. | |
In January 2008, the board of directors of the Corporation authorized the repurchase of up to 500,000 shares of the Corporation’s common stock under a stock repurchase program. In November 2011, the board of directors of the Corporation reaffirmed the stock buy-back authorization with the qualification that the shares may only be repurchased if the share price is below the tangible book value per share of the Corporation’s common stock at the time of the repurchase. Since the January 2008 authorization, no shares have been repurchased. At June 30, 2014, there were 500,000 remaining shares available for repurchase under the Corporation’s stock repurchase programs. | |
Underwritten Public Offering of Common Stock | |
On June 24, 2014, the Corporation issued and sold 2,500,000 shares of common stock at a public offering price of $28.00 per share. An additional 375,000 shares were issued and sold on June 30, 2014 upon the exercise in full of the underwriters' over-allotment option. The net proceeds from the issuance and sale of the common stock, after deducting the underwriting discount and issuance-related expenses, totaled $76.2 million. | |
On September 18, 2013, the Corporation issued and sold 2,213,750 shares of common stock, including 288,750 shares of common stock that were issued and sold upon the exercise in full of the underwriters' over-allotment option, at a public offering price of $26.00 per share. The net proceeds from the issuance and sale of the common stock, after deducting the underwriting discount and issuance-related expenses, totaled $53.9 million. | |
Shelf Registration | |
On June 12, 2014, the Corporation filed an automatic shelf registration statement of securities of well-known seasoned issuers with the Securities and Exchange Commission (SEC) for an indeterminate amount of shares, which became immediately effective. The shelf registration statement provides the Corporation with the ability to raise capital, subject to SEC rules and limitations, if the board of directors of the Corporation decides to do so. As previously discussed, the Corporation completed an $80.5 million public stock offering during the second quarter of 2014, which does not take into account the underwriting discount and issuance related expenses. | |
The Corporation had previously filed a universal shelf registration statement with the SEC on May 23, 2013, which became effective on June 7, 2013, to register up to $100 million in securities. The Corporation's September 2013 common stock offering was completed under this universal shelf registration statement. Prior to filing its automatic shelf registration statement on June 12, 2014, the Corporation filed a post-effective amendment to terminate the effectiveness of the universal shelf registration statement and remove from registration all of the remaining securities covered by the universal shelf registration statement. | |
Preferred Stock | |
On April 20, 2009, the shareholders of the Corporation authorized the board of directors of the Corporation to issue up to 200,000 shares of preferred stock in connection with either an acquisition by the Corporation of an entity that has shares of preferred stock issued and outstanding pursuant to any program established by the United States government or participation by the Corporation in any program established by the United States government. At June 30, 2014, no shares of preferred stock were issued and outstanding. | |
Legal Matters | |
The Corporation and Chemical Bank are subject to certain legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition or results of operations of the Corporation. | |
Adopted Accounting Pronouncements | |
Joint and Several Liability Arrangements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (ASU 2013-04). ASU 2013-04 provides guidance in relation to the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. ASU 2013-04 is effective for interim and annual periods beginning after December 15, 2013 and should be applied retrospectively for all periods presented for those obligations resulting from joint and several liability arrangements that exist at the beginning of the fiscal year of adoption. The adoption of ASU 2013-04 as of January 1, 2014 did not have a material impact on the Corporation's consolidated financial condition or results of operations. | |
Accounting for Investments in Qualified Affordable Housing Projects | |
In January 2014, the FASB issued ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects, a consensus of the FASB Emerging Issues Task Force (ASU 2014-01). ASU 2014-01 allows limited liability investors in qualified affordable housing projects to amortize the cost of their investment in proportion to tax credits and other tax benefits received (referred to as the "proportional amortization method"), and present the amortization as a component of income tax expense. The proportional amortization method replaces the equity method, which requires the investment performance to be included in pre-tax income. The following conditions must be met in order for an investor to use the proportional amortization method: (i) it is probable that the tax credits allocable to the investor will be available, (ii) the investor does not have the ability to exercise significant influence over the operating and financial policies of the limited liability entity, (iii) substantially all of the projected benefits are from tax credits and other tax benefits, (iv) the investor's projected yield based solely on the cash flows from the tax credits and other tax benefits is positive, and (v) the investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the investor's liability is limited to its capital investment. The decision to apply the proportional amortization method is an accounting policy method that, if elected, must be applied consistently to all investments that meet the above conditions. An investor that does not qualify for the proportional amortization method or elects not to apply it will account for its investment under the cost or equity method in accordance with current guidance. ASU 2014-01 also introduces disclosure requirements for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. An investor must disclose (i) the nature of investments in qualified affordable housing projects and (ii) the effect of the measurement of those investments and the related tax credits on its financial statements. ASU 2014-01 is effective for public companies for interim and annual periods beginning after December 15, 2014, with early adoption permitted. Once adopted, the guidance must be applied retrospectively to all periods presented. | |
The Corporation elected to early-adopt ASU 2014-01 as of January 1, 2014. The Corporation previously accounted for its investments in qualified affordable housing projects under the equity method; however, the Corporation determined that its investments in its qualified affordable housing projects meet the conditions set forth in ASU 2014-01 to account for these investments under the proportional amortization method. The Corporation invests in qualified affordable housing projects solely for the purpose of obtaining tax credits and other tax benefits. Accordingly, the Corporation believes that amortizing its investments in qualified affordable housing projects as a component of income tax expense rather than as a component of operating expenses better reflects the nature and intent of these investments. As a result of adopting ASU 2014-01, the Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $0.1 million and $0.2 million during the three and six months ended June 30, 2014. While the adoption of ASU 2014-01 requires retrospective application to all periods presented, the Corporation did not restate income tax expense for the three and six months ended June 30, 2013 as the amount of additional income tax expense attributable to the amortization of investments in qualified affordable housing projects was not considered material. The Corporation's remaining investment in qualified affordable housing projects totaled $3.1 million at June 30, 2014, $3.2 million at December 31, 2013 and $3.4 million at June 30, 2013. | |
Pending Accounting Pronouncements | |
In-Substance Foreclosures | |
In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-04). ASU 2014-04 clarifies that an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 also requires disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure. ASU 2014-04 is effective for public companies for interim and annual periods beginning after December 15, 2014, with early adoption permitted. Once adopted, an entity can elect either (i) a modified retrospective transition method or (ii) a prospective transition method. The modified retrospective transition method is applied by means of a cumulative-effect adjustment to residential mortgage loans and foreclosed residential real estate properties existing as of the beginning of the period for which the amendments of ASU 2014-04 are effective, with real estate reclassified to loans measured at the carrying value of the real estate at the date of adoption and loans reclassified to real estate measured at the lower of net carrying value of the loan or the fair value of the real estate less costs to sell at the date of adoption. The prospective transition method is applied by means of applying the amendments of ASU 2014-04 to all instances of receiving physical possession of residential real estate properties that occur after the date of adoption. The adoption of ASU 2014-04 is not expected to have a material impact on the Corporation's consolidated financial condition or results of operations. | |
Share-Based Compensation | |
In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force (ASU 2014-12). ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on the Corporation's consolidated financial condition or results of operations. |
Acquisitions
Acquisitions | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisitions | ' | ||||||||
Acquisitions | |||||||||
Pending Acquisition of Northwestern Bancorp, Inc. | |||||||||
On March 10, 2014, the Corporation and Northwestern Bancorp, Inc. (Northwestern), the parent company of Northwestern Bank, a community bank based in Traverse City, Michigan, entered into a definitive agreement whereby the Corporation will acquire Northwestern in an all cash transaction valued at $120 million, subject to adjustment under limited circumstances. The Corporation anticipates the transaction, with cost savings fully phased in and excluding the impact of acquisition-related transaction costs, to be immediately accretive to earnings per share. Closing of the merger, which is expected to occur in the third quarter of 2014, is subject to certain conditions, including regulatory approvals. The Corporation recognized $0.7 million and $1.0 million of pre-tax acquisition-related costs during the three and six months ended June 30, 2014, respectively. | |||||||||
Acquisition of 21 Branches | |||||||||
On December 7, 2012, Chemical Bank acquired 21 branches located in the Northeast and Battle Creek regions of Michigan, including $404 million in deposits and $44 million in loans (branch acquisition transaction). The purchase price of the branch offices, including equipment, was $8.1 million and the Corporation paid a premium on deposits of $11.5 million, or approximately 2.85% of total deposits. The loans were purchased at a discount of 1.75%. In connection with the branch acquisition transaction, the Corporation recorded goodwill of $6.8 million and other intangible assets attributable to customer core deposits of $5.6 million. | |||||||||
Acquisition of O.A.K. Financial Corporation (OAK) | |||||||||
On April 30, 2010, the Corporation acquired OAK and OAK's wholly-owned bank subsidiary, Byron Bank, for total consideration of $83.7 million. Byron Bank, which was subsequently consolidated with and into Chemical Bank, provided traditional banking services and products through 14 banking offices serving communities in Ottawa, Allegan and Kent counties in west Michigan. At the acquisition date, OAK had total assets of $820 million, including total loans of $627 million, and total deposits of $693 million, including brokered deposits of $193 million. | |||||||||
Upon acquisition, the OAK loan portfolio had contractually required principal payments receivable of $683 million and a fair value of $627 million. The outstanding contractual principal balance and the carrying amount of the acquired loan portfolio were $298 million and $274 million, respectively, at June 30, 2014, compared to $320 million and $295 million, respectively, at December 31, 2013 and $370 million and $345 million, respectively, at June 30, 2013. | |||||||||
Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows: | |||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance at beginning of period | $ | 32,610 | $ | 49,390 | |||||
Additions (reductions)* | 2,333 | (1,874 | ) | ||||||
Accretion recognized in interest income | (7,594 | ) | (9,321 | ) | |||||
Reclassification from nonaccretable difference | 10,000 | 125 | |||||||
Balance at end of period | $ | 37,349 | $ | 38,320 | |||||
* | Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans. | ||||||||
As part of its ongoing assessment of the acquired loan portfolio, management has determined that the overall credit quality of the acquired loan portfolio has improved, which has resulted in an improvement in expected cash flows of loan pools in the acquired commercial loan portfolio. Accordingly, management reclassified $10.0 million during the first quarter of 2014 from the nonaccretable difference to the accretable yield for these acquired commercial loan pools, which will increase amounts recognized into interest income over the estimated remaining lives of these loan pools. |
Investment_Securities
Investment Securities | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||
The following is a summary of the amortized cost and fair value of investment securities available-for-sale and investment securities held-to-maturity at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||
Investment Securities Available-for-Sale | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 88,503 | $ | 346 | $ | 141 | $ | 88,708 | |||||||||||||||||
State and political subdivisions | 40,165 | 1,443 | — | 41,608 | |||||||||||||||||||||
Residential mortgage-backed securities | 265,673 | 1,117 | 1,422 | 265,368 | |||||||||||||||||||||
Collateralized mortgage obligations | 154,035 | 376 | 1,128 | 153,283 | |||||||||||||||||||||
Corporate bonds | 64,979 | 456 | 83 | 65,352 | |||||||||||||||||||||
Preferred stock | 1,389 | 267 | — | 1,656 | |||||||||||||||||||||
Total | $ | 614,744 | $ | 4,005 | $ | 2,774 | $ | 615,975 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 93,895 | $ | 250 | $ | 382 | $ | 93,763 | |||||||||||||||||
State and political subdivisions | 42,450 | 1,355 | 7 | 43,798 | |||||||||||||||||||||
Residential mortgage-backed securities | 303,495 | 968 | 5,097 | 299,366 | |||||||||||||||||||||
Collateralized mortgage obligations | 182,128 | 452 | 1,639 | 180,941 | |||||||||||||||||||||
Corporate bonds | 65,028 | 499 | 252 | 65,275 | |||||||||||||||||||||
Preferred stock | 1,389 | 63 | 25 | 1,427 | |||||||||||||||||||||
Total | $ | 688,385 | $ | 3,587 | $ | 7,402 | $ | 684,570 | |||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 92,239 | $ | 249 | $ | 400 | $ | 92,088 | |||||||||||||||||
State and political subdivisions | 44,288 | 1,500 | 8 | 45,780 | |||||||||||||||||||||
Residential mortgage-backed securities | 311,425 | 1,166 | 4,219 | 308,372 | |||||||||||||||||||||
Collateralized mortgage obligations | 221,025 | 463 | 973 | 220,515 | |||||||||||||||||||||
Corporate bonds | 65,077 | 692 | 254 | 65,515 | |||||||||||||||||||||
Preferred stock | 1,389 | 393 | — | 1,782 | |||||||||||||||||||||
Total | $ | 735,443 | $ | 4,463 | $ | 5,854 | $ | 734,052 | |||||||||||||||||
Investment Securities Held-to-Maturity | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
State and political subdivisions | $ | 297,630 | $ | 5,885 | $ | 6,329 | $ | 297,186 | |||||||||||||||||
Trust preferred securities | 10,500 | — | 3,725 | 6,775 | |||||||||||||||||||||
Total | $ | 308,130 | $ | 5,885 | $ | 10,054 | $ | 303,961 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
State and political subdivisions | $ | 263,405 | $ | 5,462 | $ | 6,846 | $ | 262,021 | |||||||||||||||||
Trust preferred securities | 10,500 | — | 4,250 | 6,250 | |||||||||||||||||||||
Total | $ | 273,905 | $ | 5,462 | $ | 11,096 | $ | 268,271 | |||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||
State and political subdivisions | $ | 264,215 | $ | 6,113 | $ | 5,181 | $ | 265,147 | |||||||||||||||||
Trust preferred securities | 10,500 | — | 4,250 | 6,250 | |||||||||||||||||||||
Total | $ | 274,715 | $ | 6,113 | $ | 9,431 | $ | 271,397 | |||||||||||||||||
The majority of the Corporation’s residential mortgage-backed securities and collateralized mortgage obligations are backed by a U.S. government agency (Government National Mortgage Association) or a government sponsored enterprise (Federal Home Loan Mortgage Corporation or Federal National Mortgage Association). | |||||||||||||||||||||||||
At June 30, 2014, the Corporation held $10.5 million of trust preferred investment securities that were recorded as held-to-maturity, with $10.0 million of these securities representing a 100% interest in a trust preferred investment security of a small non-public bank holding company in Michigan that has been assessed by the Corporation as financially strong. The remaining $0.5 million represents a 10% interest in another trust preferred investment security of a small non-public bank holding company located in Michigan that was categorized as well-capitalized under regulatory guidelines at June 30, 2014. | |||||||||||||||||||||||||
At June 30, 2014, it was the Corporation’s opinion that the market for trust preferred investment securities was not active, and thus, in accordance with GAAP, when there is a significant decrease in the volume and activity for an asset or liability in relation to normal market activity, adjustments to transaction or quoted prices may be necessary or a change in valuation technique or multiple valuation techniques may be appropriate. The Corporation obtained pricing information for its trust preferred investment securities from an independent third-party pricing source. The pricing information was based on both observable inputs and unobservable inputs, including appropriate risk adjustments that market participants would make for possible nonperformance, illiquidity and issuer specifics such as size, leverage position and location. The observable inputs were based on the existing market and insight into appropriate rate of return adjustments that market participants would require for the additional risk associated with a single issue investment security of this nature. Based on the information obtained from the independent third-party pricing source, the Corporation calculated a fair value at June 30, 2014 of $6.5 million on its $10.0 million trust preferred investment security and $0.3 million on its $0.5 million trust preferred investment security, resulting in a combined unrealized loss of $3.7 million at that date. | |||||||||||||||||||||||||
The following is a summary of the amortized cost and fair value of investment securities at June 30, 2014, by maturity, for both available-for-sale and held-to-maturity investment securities. The maturities of residential mortgage-backed securities and collateralized mortgage obligations are based on scheduled principal payments. The maturities of all other debt securities are based on final contractual maturity. | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Amortized | Fair Value | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Investment Securities Available-for-Sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 159,350 | $ | 159,511 | |||||||||||||||||||||
Due after one year through five years | 371,009 | 371,673 | |||||||||||||||||||||||
Due after five years through ten years | 78,876 | 79,101 | |||||||||||||||||||||||
Due after ten years | 4,120 | 4,034 | |||||||||||||||||||||||
Preferred stock | 1,389 | 1,656 | |||||||||||||||||||||||
Total | $ | 614,744 | $ | 615,975 | |||||||||||||||||||||
Investment Securities Held-to-Maturity: | |||||||||||||||||||||||||
Due in one year or less | $ | 34,176 | $ | 34,260 | |||||||||||||||||||||
Due after one year through five years | 132,011 | 133,164 | |||||||||||||||||||||||
Due after five years through ten years | 88,674 | 89,653 | |||||||||||||||||||||||
Due after ten years | 53,269 | 46,884 | |||||||||||||||||||||||
Total | $ | 308,130 | $ | 303,961 | |||||||||||||||||||||
The following schedule summarizes information for both available-for-sale and held-to-maturity investment securities with gross unrealized losses at June 30, 2014, December 31, 2013 and June 30, 2013, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 2,377 | $ | 2 | $ | 44,786 | $ | 139 | $ | 47,163 | $ | 141 | |||||||||||||
State and political subdivisions | 92,279 | 4,047 | 71,421 | 2,282 | 163,700 | 6,329 | |||||||||||||||||||
Residential mortgage-backed securities | 10,144 | 60 | 197,042 | 1,362 | 207,186 | 1,422 | |||||||||||||||||||
Collateralized mortgage obligations | 47,142 | 68 | 35,722 | 1,060 | 82,864 | 1,128 | |||||||||||||||||||
Corporate bonds | 4,996 | 5 | 14,922 | 78 | 19,918 | 83 | |||||||||||||||||||
Trust preferred securities | — | — | 6,775 | 3,725 | 6,775 | 3,725 | |||||||||||||||||||
Total | $ | 156,938 | $ | 4,182 | $ | 370,668 | $ | 8,646 | $ | 527,606 | $ | 12,828 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 47,352 | $ | 205 | $ | 14,031 | $ | 177 | $ | 61,383 | $ | 382 | |||||||||||||
State and political subdivisions | 126,345 | 6,475 | 19,074 | 378 | 145,419 | 6,853 | |||||||||||||||||||
Residential mortgage-backed securities | 274,076 | 5,097 | — | — | 274,076 | 5,097 | |||||||||||||||||||
Collateralized mortgage obligations | 84,995 | 1,127 | 14,684 | 512 | 99,679 | 1,639 | |||||||||||||||||||
Corporate bonds | 14,931 | 78 | 19,826 | 174 | 34,757 | 252 | |||||||||||||||||||
Trust preferred securities | — | — | 6,250 | 4,250 | 6,250 | 4,250 | |||||||||||||||||||
Preferred stock | 1,024 | 25 | — | — | 1,024 | 25 | |||||||||||||||||||
Total | $ | 548,723 | $ | 13,007 | $ | 73,865 | $ | 5,491 | $ | 622,588 | $ | 18,498 | |||||||||||||
30-Jun-13 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 58,646 | $ | 400 | $ | — | $ | — | $ | 58,646 | $ | 400 | |||||||||||||
State and political subdivisions | 128,062 | 4,707 | 19,378 | 482 | 147,440 | 5,189 | |||||||||||||||||||
Residential mortgage-backed securities | 267,211 | 4,217 | 257 | 2 | 267,468 | 4,219 | |||||||||||||||||||
Collateralized mortgage obligations | 100,469 | 939 | 8,083 | 34 | 108,552 | 973 | |||||||||||||||||||
Corporate bonds | 4,881 | 130 | 19,876 | 124 | 24,757 | 254 | |||||||||||||||||||
Trust preferred securities | — | — | 6,250 | 4,250 | 6,250 | 4,250 | |||||||||||||||||||
Total | $ | 559,269 | $ | 10,393 | $ | 53,844 | $ | 4,892 | $ | 613,113 | $ | 15,285 | |||||||||||||
An assessment is performed quarterly by the Corporation to determine whether unrealized losses in its investment securities portfolio are temporary or other-than-temporary by carefully considering all available information. The Corporation reviews factors such as financial statements, credit ratings, news releases and other pertinent information of the underlying issuer or company to make its determination. Management did not believe any individual unrealized loss on any investment security, as of June 30, 2014, represented an other-than-temporary impairment (OTTI). Management believed that the unrealized losses on investment securities at June 30, 2014 were temporary in nature and due primarily to changes in interest rates and reduced market liquidity and not as a result of credit-related issues. Unrealized losses of $3.7 million in the trust preferred securities portfolio, related to trust preferred securities of two well-capitalized bank holding companies in Michigan, were attributable to illiquidity in financial markets for these types of investments. The Corporation performed an analysis of the creditworthiness of these issuers and concluded that, at June 30, 2014, the Corporation expected to recover the entire amortized cost basis of these investment securities. | |||||||||||||||||||||||||
At June 30, 2014, the Corporation did not have the intent to sell any of its impaired investment securities and believed that it was more-likely-than-not that the Corporation will not have to sell any such investment securities before a full recovery of amortized cost. Accordingly, at June 30, 2014, the Corporation believed the impairments in its investment securities portfolio were temporary in nature. However, there is no assurance that OTTI may not occur in the future. |
Loans
Loans | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Loan portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance. The Corporation has two loan portfolio segments (commercial loans and consumer loans) that it uses in determining the allowance. Both quantitative and qualitative factors are used by management at the loan portfolio segment level in determining the adequacy of the allowance for the Corporation. Classes of loans are a disaggregation of an entity’s loan portfolio segments. Classes of loans are defined as a group of loans which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. The Corporation has seven classes of loans, which are set forth below. | |||||||||||||||||||||||||||||
Commercial — Loans and lines of credit to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, personal guarantees of the owner and other sources of repayment, although the Corporation may also secure commercial loans with real estate. | |||||||||||||||||||||||||||||
Commercial real estate — Loans secured by real estate occupied by the borrower for ongoing operations, non-owner occupied real estate leased to one or more tenants and vacant land that has been acquired for investment or future land development. | |||||||||||||||||||||||||||||
Real estate construction — Secured loans for the construction of business properties. Real estate construction loans often convert to a commercial real estate loan at the completion of the construction period. | |||||||||||||||||||||||||||||
Land development — Secured development loans made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Land development loans at June 30, 2014, December 31, 2013 and June 30, 2013 were primarily comprised of loans to develop residential properties. | |||||||||||||||||||||||||||||
Residential mortgage — Loans secured by one- to four-family residential properties, generally with fixed interest rates for periods of fifteen years or less. The loan-to-value ratio at the time of origination is generally 80% or less. Residential mortgage loans with a loan-to-value ratio of more than 80% generally require private mortgage insurance. | |||||||||||||||||||||||||||||
Consumer installment — Loans to consumers primarily for the purpose of acquiring automobiles, recreational vehicles and personal watercraft. These loans consist of relatively small amounts that are spread across many individual borrowers. | |||||||||||||||||||||||||||||
Home equity — Loans and lines of credit whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan. | |||||||||||||||||||||||||||||
Commercial, commercial real estate, real estate construction and land development loans are referred to as the Corporation’s commercial loan portfolio, while residential mortgage, consumer installment and home equity loans are referred to as the Corporation’s consumer loan portfolio. A summary of loans follows: | |||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 1,212,383 | $ | 1,176,307 | $ | 1,091,894 | |||||||||||||||||||||||
Commercial real estate | 1,298,365 | 1,232,658 | 1,172,347 | ||||||||||||||||||||||||||
Real estate construction | 101,168 | 89,795 | 73,448 | ||||||||||||||||||||||||||
Land development | 10,956 | 20,066 | 27,181 | ||||||||||||||||||||||||||
Subtotal | 2,622,872 | 2,518,826 | 2,364,870 | ||||||||||||||||||||||||||
Consumer loan portfolio: | |||||||||||||||||||||||||||||
Residential mortgage | 970,397 | 960,423 | 898,816 | ||||||||||||||||||||||||||
Consumer installment | 744,781 | 644,769 | 577,241 | ||||||||||||||||||||||||||
Home equity | 560,754 | 523,603 | 494,944 | ||||||||||||||||||||||||||
Subtotal | 2,275,932 | 2,128,795 | 1,971,001 | ||||||||||||||||||||||||||
Total loans | $ | 4,898,804 | $ | 4,647,621 | $ | 4,335,871 | |||||||||||||||||||||||
Credit Quality Monitoring | |||||||||||||||||||||||||||||
The Corporation maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally only within the Corporation’s market areas. The Corporation’s lending markets generally consist of communities across the lower peninsula of Michigan, except for the southeastern portion of Michigan. The Corporation has no foreign loans. | |||||||||||||||||||||||||||||
The Corporation has a commercial loan portfolio approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Corporation’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. The approval authority of relationship managers is established based on experience levels, with credit decisions greater than $1.0 million requiring group loan authority approval, except for four executive and senior officers who have varying limits exceeding $1.5 million and up to $3.5 million. With respect to the group loan authorities, the Corporation has a loan committee, consisting of certain executive and senior officers, that meets weekly to consider loans ranging in amounts from $1.0 million to $5.0 million, depending on risk rating and credit action required. A directors’ loan committee, consisting of nine members of the board of directors, including the chief executive officer and senior credit officer, meets bi-weekly to consider loans in amounts over $5.0 million, and certain loans under $5.0 million depending on a loan’s risk rating and credit action required. Loans over $10.0 million require majority approval of the board of directors. | |||||||||||||||||||||||||||||
The majority of the Corporation’s consumer loan portfolio is comprised of secured loans that are relatively small. The Corporation’s consumer loan portfolio has a centralized approval process which utilizes standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Corporation’s collection department for resolution, resulting in repossession or foreclosure if payments are not brought current. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred. | |||||||||||||||||||||||||||||
Loans in the commercial loan portfolio tend to be larger and more complex than those in the consumer loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various loan committees within the Corporation at least quarterly. | |||||||||||||||||||||||||||||
The Corporation maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Corporation also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Corporation for loans in the commercial loan portfolio. | |||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||
Commercial Loan Portfolio | |||||||||||||||||||||||||||||
The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, coverage and payment behavior as shown in the borrower’s financial statements. The loan grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. A summary of the Corporation’s loan grades (or characteristics of the loans within each grade) follows: | |||||||||||||||||||||||||||||
Risk Grades 1-5 (Acceptable Credit Quality) — All loans in risk grades 1 through 5 are considered to be acceptable credit risks by the Corporation and are grouped for purposes of allowance for loan loss considerations and financial reporting. The five grades essentially represent a ranking of loans that are all viewed to be of acceptable credit quality, taking into consideration the various factors mentioned above, but with varying degrees of financial strength, debt coverage, management and factors that could impact credit quality. Business credits within risk grades 1 through 5 range from Risk Grade 1: Prime Quality (factors include: excellent business credit; excellent debt capacity and coverage; outstanding management; strong guarantors; superior liquidity and net worth; favorable loan-to-value ratios; debt secured by cash or equivalents, or backed by the full faith and credit of the U.S. Government) to Risk Grade 5: Acceptable Quality With Care (factors include: acceptable business credit, but with added risk due to specific industry or internal situations). | |||||||||||||||||||||||||||||
Risk Grade 6 (Watch) — A business credit that is not acceptable within the Corporation’s loan origination criteria; cash flow may not be adequate or is continually inconsistent to service current debt; financial condition has deteriorated as company trends/management have become inconsistent; the company is slow in furnishing quality financial information; working capital needs of the company are reliant on short-term borrowings; personal guarantees are weak and/or with little or no liquidity; the net worth of the company has deteriorated after recent or continued losses; the loan requires constant monitoring and attention from the Corporation; payment delinquencies becoming more serious; if left uncorrected, these potential weaknesses may, at some future date, result in deterioration of repayment prospects. | |||||||||||||||||||||||||||||
Risk Grade 7 (Substandard — Accrual) — A business credit that is inadequately protected by the current financial net worth and paying capacity of the obligor or of the collateral pledged, if any; management has deteriorated or has become non-existent; quality financial information is not available; a high level of maintenance is required by the Corporation; cash flow can no longer support debt requirements; loan payments are continually and/or severely delinquent; negative net worth; personal guaranty has become insignificant; a credit that has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. The Corporation still expects a full recovery of all contractual principal and interest payments; however, a possibility exists that the Corporation will sustain some loss if deficiencies are not corrected. | |||||||||||||||||||||||||||||
Risk Grade 8 (Substandard — Nonaccrual) — A business credit accounted for on a nonaccrual basis that has all the weaknesses inherent in a loan classified as risk grade 7 with the added characteristic that the weaknesses are so pronounced that, on the basis of current financial information, conditions, and values, collection in full is highly questionable; a partial loss is possible and interest is no longer being accrued. This loan meets the definition of an impaired loan. The risk of loss requires analysis to determine whether a valuation allowance needs to be established. | |||||||||||||||||||||||||||||
Risk Grade 9 (Substandard — Doubtful) — A business credit that has all the weaknesses inherent in a loan classified as risk grade 8 and interest is no longer being accrued, but additional deficiencies make it highly probable that liquidation will not satisfy the majority of the obligation; the primary source of repayment is nonexistent and there is doubt as to the value of the secondary source of repayment; the possibility of loss is likely, but current pending factors could strengthen the credit. This loan meets the definition of an impaired loan. A loan charge-off is recorded when management deems an amount uncollectible; however, the Corporation will establish a valuation allowance for probable losses, if required. | |||||||||||||||||||||||||||||
The Corporation considers all loans graded 1 through 5 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans graded 6 and 7 are considered higher-risk credits than loans graded 1 through 5 and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans graded 8 and 9 are considered problematic and require special care. Further, loans graded 6 through 9 are managed and monitored regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Corporation, which include highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Corporation’s special assets group. | |||||||||||||||||||||||||||||
The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Real Estate | Land | Total | |||||||||||||||||||||||||
Construction | Development | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | $ | 1,067,000 | $ | 1,063,555 | $ | 85,754 | $ | 2,514 | $ | 2,218,823 | |||||||||||||||||||
Risk Grade 6 | 15,459 | 30,053 | 666 | 965 | 47,143 | ||||||||||||||||||||||||
Risk Grade 7 | 37,291 | 35,946 | 1,995 | 627 | 75,859 | ||||||||||||||||||||||||
Risk Grade 8 | 18,560 | 25,347 | 160 | 2,184 | 46,251 | ||||||||||||||||||||||||
Risk Grade 9 | 213 | 14 | — | — | 227 | ||||||||||||||||||||||||
Subtotal | 1,138,523 | 1,154,915 | 88,575 | 6,290 | 2,388,303 | ||||||||||||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | 59,993 | 132,898 | 12,593 | 2,546 | 208,030 | ||||||||||||||||||||||||
Risk Grade 6 | 6,769 | 3,822 | — | — | 10,591 | ||||||||||||||||||||||||
Risk Grade 7 | 3,197 | 6,730 | — | 143 | 10,070 | ||||||||||||||||||||||||
Risk Grade 8 | 3,901 | — | — | 1,977 | 5,878 | ||||||||||||||||||||||||
Risk Grade 9 | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 73,860 | 143,450 | 12,593 | 4,666 | 234,569 | ||||||||||||||||||||||||
Total | $ | 1,212,383 | $ | 1,298,365 | $ | 101,168 | $ | 10,956 | $ | 2,622,872 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | $ | 1,024,461 | $ | 991,964 | $ | 75,696 | $ | 6,874 | $ | 2,098,995 | |||||||||||||||||||
Risk Grade 6 | 20,082 | 34,248 | 654 | 969 | 55,953 | ||||||||||||||||||||||||
Risk Grade 7 | 29,776 | 30,377 | 738 | 3,128 | 64,019 | ||||||||||||||||||||||||
Risk Grade 8 | 17,414 | 28,580 | 371 | 2,309 | 48,674 | ||||||||||||||||||||||||
Risk Grade 9 | 960 | 18 | — | — | 978 | ||||||||||||||||||||||||
Subtotal | 1,092,693 | 1,085,187 | 77,459 | 13,280 | 2,268,619 | ||||||||||||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | 73,763 | 133,653 | 12,336 | 4,667 | 224,419 | ||||||||||||||||||||||||
Risk Grade 6 | 5,472 | 5,022 | — | — | 10,494 | ||||||||||||||||||||||||
Risk Grade 7 | 852 | 7,792 | — | — | 8,644 | ||||||||||||||||||||||||
Risk Grade 8 | 3,527 | 1,004 | — | 2,119 | 6,650 | ||||||||||||||||||||||||
Risk Grade 9 | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 83,614 | 147,471 | 12,336 | 6,786 | 250,207 | ||||||||||||||||||||||||
Total | $ | 1,176,307 | $ | 1,232,658 | $ | 89,795 | $ | 20,066 | $ | 2,518,826 | |||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | $ | 919,985 | $ | 897,960 | $ | 59,575 | $ | 9,315 | $ | 1,886,835 | |||||||||||||||||||
Risk Grade 6 | 26,848 | 43,650 | 58 | 434 | 70,990 | ||||||||||||||||||||||||
Risk Grade 7 | 29,025 | 33,464 | 1,058 | 5,751 | 69,298 | ||||||||||||||||||||||||
Risk Grade 8 | 9,693 | 28,048 | 183 | 3,434 | 41,358 | ||||||||||||||||||||||||
Risk Grade 9 | 1,359 | 450 | — | — | 1,809 | ||||||||||||||||||||||||
Subtotal | 986,910 | 1,003,572 | 60,874 | 18,934 | 2,070,290 | ||||||||||||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | 100,241 | 152,906 | 12,574 | 5,682 | 271,403 | ||||||||||||||||||||||||
Risk Grade 6 | 2,315 | 5,696 | — | — | 8,011 | ||||||||||||||||||||||||
Risk Grade 7 | 699 | 8,720 | — | — | 9,419 | ||||||||||||||||||||||||
Risk Grade 8 | 1,729 | 1,453 | — | 2,565 | 5,747 | ||||||||||||||||||||||||
Risk Grade 9 | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 104,984 | 168,775 | 12,574 | 8,247 | 294,580 | ||||||||||||||||||||||||
Total | $ | 1,091,894 | $ | 1,172,347 | $ | 73,448 | $ | 27,181 | $ | 2,364,870 | |||||||||||||||||||
Consumer Loan Portfolio | |||||||||||||||||||||||||||||
The Corporation evaluates the credit quality of loans in the consumer loan portfolio based on the performing or nonperforming status of the loan. Loans in the consumer loan portfolio that are performing in accordance with original contractual terms and are less than 90 days past due and accruing interest are considered to be in a performing status, while those that are in nonaccrual status, contractually past due 90 days or more as to interest or principal payments or classified as a nonperforming TDR are considered to be in a nonperforming status. Nonaccrual TDRs in the consumer loan portfolio are included with nonaccrual loans, while other TDRs in the consumer loan portfolio are considered in a nonperforming status until they meet the Corporation’s definition of a performing TDR, at which time they are considered in a performing status. | |||||||||||||||||||||||||||||
The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
Residential Mortgage | Consumer | Home Equity | Total | ||||||||||||||||||||||||||
Installment | Consumer | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||
Performing | $ | 947,768 | $ | 743,121 | $ | 529,093 | $ | 2,219,982 | |||||||||||||||||||||
Nonperforming | 12,217 | 536 | 3,371 | 16,124 | |||||||||||||||||||||||||
Subtotal | 959,985 | 743,657 | 532,464 | 2,236,106 | |||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||
Performing | 10,343 | 1,124 | 28,227 | 39,694 | |||||||||||||||||||||||||
Nonperforming | 69 | — | 63 | 132 | |||||||||||||||||||||||||
Subtotal | 10,412 | 1,124 | 28,290 | 39,826 | |||||||||||||||||||||||||
Total | $ | 970,397 | $ | 744,781 | $ | 560,754 | $ | 2,275,932 | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||
Performing | $ | 934,747 | $ | 642,370 | $ | 488,996 | $ | 2,066,113 | |||||||||||||||||||||
Nonperforming | 14,134 | 676 | 3,382 | 18,192 | |||||||||||||||||||||||||
Subtotal | 948,881 | 643,046 | 492,378 | 2,084,305 | |||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||
Performing | 11,481 | 1,723 | 31,182 | 44,386 | |||||||||||||||||||||||||
Nonperforming | 61 | — | 43 | 104 | |||||||||||||||||||||||||
Subtotal | 11,542 | 1,723 | 31,225 | 44,490 | |||||||||||||||||||||||||
Total | $ | 960,423 | $ | 644,769 | $ | 523,603 | $ | 2,128,795 | |||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||
Performing | $ | 873,543 | $ | 574,354 | $ | 455,490 | $ | 1,903,387 | |||||||||||||||||||||
Nonperforming | 12,651 | 552 | 3,753 | 16,956 | |||||||||||||||||||||||||
Subtotal | 886,194 | 574,906 | 459,243 | 1,920,343 | |||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||
Performing | 12,622 | 2,335 | 35,583 | 50,540 | |||||||||||||||||||||||||
Nonperforming | — | — | 118 | 118 | |||||||||||||||||||||||||
Subtotal | 12,622 | 2,335 | 35,701 | 50,658 | |||||||||||||||||||||||||
Total | $ | 898,816 | $ | 577,241 | $ | 494,944 | $ | 1,971,001 | |||||||||||||||||||||
Nonperforming Loans | |||||||||||||||||||||||||||||
A summary of nonperforming loans follows: | |||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial | $ | 18,773 | $ | 18,374 | $ | 11,052 | |||||||||||||||||||||||
Commercial real estate | 25,361 | 28,598 | 28,498 | ||||||||||||||||||||||||||
Real estate construction | 160 | 371 | 183 | ||||||||||||||||||||||||||
Land development | 2,184 | 2,309 | 3,434 | ||||||||||||||||||||||||||
Residential mortgage | 6,325 | 8,921 | 9,241 | ||||||||||||||||||||||||||
Consumer installment | 536 | 676 | 552 | ||||||||||||||||||||||||||
Home equity | 2,296 | 2,648 | 3,064 | ||||||||||||||||||||||||||
Total nonaccrual loans | 55,635 | 61,897 | 56,024 | ||||||||||||||||||||||||||
Accruing loans contractually past due 90 days or more as to interest or principal payments: | |||||||||||||||||||||||||||||
Commercial | 15 | 536 | 1 | ||||||||||||||||||||||||||
Commercial real estate | 69 | 190 | 78 | ||||||||||||||||||||||||||
Real estate construction | — | — | — | ||||||||||||||||||||||||||
Land development | — | — | — | ||||||||||||||||||||||||||
Residential mortgage | 376 | 537 | 164 | ||||||||||||||||||||||||||
Consumer installment | — | — | — | ||||||||||||||||||||||||||
Home equity | 1,075 | 734 | 689 | ||||||||||||||||||||||||||
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 1,535 | 1,997 | 932 | ||||||||||||||||||||||||||
Nonperforming TDRs: | |||||||||||||||||||||||||||||
Commercial loan portfolio | 11,049 | 13,414 | 19,140 | ||||||||||||||||||||||||||
Consumer loan portfolio | 5,516 | 4,676 | 3,246 | ||||||||||||||||||||||||||
Total nonperforming TDRs | 16,565 | 18,090 | 22,386 | ||||||||||||||||||||||||||
Total nonperforming loans | $ | 73,735 | $ | 81,984 | $ | 79,342 | |||||||||||||||||||||||
The Corporation’s nonaccrual loans at June 30, 2014, December 31, 2013 and June 30, 2013 included $43.7 million, $37.3 million and $40.1 million, respectively, of nonaccrual TDRs. | |||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
The following schedule presents impaired loans by classes of loans at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||||||
Investment | Principal | Valuation | |||||||||||||||||||||||||||
Balance | Allowance | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 2,905 | $ | 3,258 | $ | 563 | |||||||||||||||||||||||
Commercial real estate | 4,369 | 5,605 | 777 | ||||||||||||||||||||||||||
Real estate construction | — | — | — | ||||||||||||||||||||||||||
Land development | — | — | — | ||||||||||||||||||||||||||
Residential mortgage | 20,353 | 20,353 | 379 | ||||||||||||||||||||||||||
Subtotal | 27,627 | 29,216 | 1,719 | ||||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 39,420 | 43,463 | — | ||||||||||||||||||||||||||
Commercial real estate | 46,205 | 58,997 | — | ||||||||||||||||||||||||||
Real estate construction | 160 | 366 | — | ||||||||||||||||||||||||||
Land development | 4,211 | 7,506 | — | ||||||||||||||||||||||||||
Residential mortgage | 6,325 | 6,325 | — | ||||||||||||||||||||||||||
Consumer installment | 536 | 536 | — | ||||||||||||||||||||||||||
Home equity | 2,296 | 2,296 | — | ||||||||||||||||||||||||||
Subtotal | 99,153 | 119,489 | — | ||||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 42,325 | 46,721 | 563 | ||||||||||||||||||||||||||
Commercial real estate | 50,574 | 64,602 | 777 | ||||||||||||||||||||||||||
Real estate construction | 160 | 366 | — | ||||||||||||||||||||||||||
Land development | 4,211 | 7,506 | — | ||||||||||||||||||||||||||
Residential mortgage | 26,678 | 26,678 | 379 | ||||||||||||||||||||||||||
Consumer installment | 536 | 536 | — | ||||||||||||||||||||||||||
Home equity | 2,296 | 2,296 | — | ||||||||||||||||||||||||||
Total | $ | 126,780 | $ | 148,705 | $ | 1,719 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 2,517 | $ | 2,656 | $ | 728 | |||||||||||||||||||||||
Commercial real estate | 2,576 | 2,965 | 353 | ||||||||||||||||||||||||||
Real estate construction | — | — | — | ||||||||||||||||||||||||||
Land development | — | — | — | ||||||||||||||||||||||||||
Residential mortgage | 17,408 | 17,408 | 510 | ||||||||||||||||||||||||||
Subtotal | 22,501 | 23,029 | 1,591 | ||||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 38,838 | 44,377 | — | ||||||||||||||||||||||||||
Commercial real estate | 48,220 | 61,444 | — | ||||||||||||||||||||||||||
Real estate construction | 371 | 478 | — | ||||||||||||||||||||||||||
Land development | 7,170 | 11,817 | — | ||||||||||||||||||||||||||
Residential mortgage | 8,921 | 8,921 | — | ||||||||||||||||||||||||||
Consumer installment | 676 | 676 | — | ||||||||||||||||||||||||||
Home equity | 2,648 | 2,648 | — | ||||||||||||||||||||||||||
Subtotal | 106,844 | 130,361 | — | ||||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 41,355 | 47,033 | 728 | ||||||||||||||||||||||||||
Commercial real estate | 50,796 | 64,409 | 353 | ||||||||||||||||||||||||||
Real estate construction | 371 | 478 | — | ||||||||||||||||||||||||||
Land development | 7,170 | 11,817 | — | ||||||||||||||||||||||||||
Residential mortgage | 26,329 | 26,329 | 510 | ||||||||||||||||||||||||||
Consumer installment | 676 | 676 | — | ||||||||||||||||||||||||||
Home equity | 2,648 | 2,648 | — | ||||||||||||||||||||||||||
Total | $ | 129,345 | $ | 153,390 | $ | 1,591 | |||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||||||
Investment | Principal | Valuation | |||||||||||||||||||||||||||
Balance | Allowance | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 4,569 | $ | 5,618 | $ | 1,610 | |||||||||||||||||||||||
Commercial real estate | 8,822 | 10,162 | 2,112 | ||||||||||||||||||||||||||
Real estate construction | — | — | — | ||||||||||||||||||||||||||
Land development | 2,039 | 2,872 | 130 | ||||||||||||||||||||||||||
Residential mortgage | 17,406 | 17,406 | 582 | ||||||||||||||||||||||||||
Subtotal | 32,836 | 36,058 | 4,434 | ||||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 21,969 | 25,934 | — | ||||||||||||||||||||||||||
Commercial real estate | 42,913 | 56,117 | — | ||||||||||||||||||||||||||
Real estate construction | 397 | 467 | — | ||||||||||||||||||||||||||
Land development | 8,495 | 11,675 | — | ||||||||||||||||||||||||||
Residential mortgage | 9,241 | 9,241 | — | ||||||||||||||||||||||||||
Consumer installment | 552 | 552 | — | ||||||||||||||||||||||||||
Home equity | 3,064 | 3,064 | — | ||||||||||||||||||||||||||
Subtotal | 86,631 | 107,050 | — | ||||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 26,538 | 31,552 | 1,610 | ||||||||||||||||||||||||||
Commercial real estate | 51,735 | 66,279 | 2,112 | ||||||||||||||||||||||||||
Real estate construction | 397 | 467 | — | ||||||||||||||||||||||||||
Land development | 10,534 | 14,547 | 130 | ||||||||||||||||||||||||||
Residential mortgage | 26,647 | 26,647 | 582 | ||||||||||||||||||||||||||
Consumer installment | 552 | 552 | — | ||||||||||||||||||||||||||
Home equity | 3,064 | 3,064 | — | ||||||||||||||||||||||||||
Total | $ | 119,467 | $ | 143,108 | $ | 4,434 | |||||||||||||||||||||||
The difference between an impaired loan’s recorded investment and the unpaid principal balance for originated loans represents a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan balance and management’s assessment that full collection of the loan balance is not likely, and for acquired loans that meet the definition of an impaired loan represents fair value adjustments recognized at the acquisition date attributable to expected credit losses and the discounting of expected cash flows at market interest rates. The difference between the recorded investment and the unpaid principal balance of $21.9 million, $24.0 million and $23.6 million at June 30, 2014, December 31, 2013 and June 30, 2013, respectively, includes confirmed losses (partial charge-offs) of $18.2 million, $20.2 million and $20.1 million, respectively, and fair value discount adjustments of $3.7 million, $3.8 million and $3.5 million, respectively. | |||||||||||||||||||||||||||||
Impaired loans included $10.4 million, $9.8 million and $8.4 million at June 30, 2014, December 31, 2013 and June 30, 2013, respectively, of acquired loans that were not performing in accordance with original contractual terms. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming loans because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loans. Impaired loans also included $44.1 million, $39.6 million and $32.7 million at June 30, 2014, December 31, 2013 and June 30, 2013, respectively, of performing TDRs. | |||||||||||||||||||||||||||||
The following schedule presents information related to impaired loans for the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Average | Interest Income | Average | Interest Income | ||||||||||||||||||||||||||
Recorded | Recognized | Recorded | Recognized | ||||||||||||||||||||||||||
Investment | While on | Investment | While on | ||||||||||||||||||||||||||
Impaired Status | Impaired Status | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 42,629 | $ | 347 | $ | 42,118 | $ | 680 | |||||||||||||||||||||
Commercial real estate | 51,260 | 366 | 52,290 | 727 | |||||||||||||||||||||||||
Real estate construction | 163 | — | 165 | — | |||||||||||||||||||||||||
Land development | 4,312 | 34 | 4,478 | 71 | |||||||||||||||||||||||||
Residential mortgage | 26,737 | 328 | 26,758 | 631 | |||||||||||||||||||||||||
Consumer installment | 634 | — | 704 | — | |||||||||||||||||||||||||
Home equity | 2,221 | — | 2,194 | — | |||||||||||||||||||||||||
Total | $ | 127,956 | $ | 1,075 | $ | 128,707 | $ | 2,109 | |||||||||||||||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Average | Interest Income | Average | Interest Income | ||||||||||||||||||||||||||
Recorded | Recognized | Recorded | Recognized | ||||||||||||||||||||||||||
Investment | While on | Investment | While on | ||||||||||||||||||||||||||
Impaired Status | Impaired Status | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 26,704 | $ | 225 | $ | 26,828 | $ | 418 | |||||||||||||||||||||
Commercial real estate | 53,434 | 412 | 55,090 | 700 | |||||||||||||||||||||||||
Real estate construction | 410 | 3 | 386 | 5 | |||||||||||||||||||||||||
Land development | 10,879 | 91 | 10,897 | 182 | |||||||||||||||||||||||||
Residential mortgage | 26,903 | 274 | 27,911 | 569 | |||||||||||||||||||||||||
Consumer installment | 647 | — | 683 | — | |||||||||||||||||||||||||
Home equity | 2,878 | — | 2,920 | — | |||||||||||||||||||||||||
Total | $ | 121,855 | $ | 1,005 | $ | 124,715 | $ | 1,874 | |||||||||||||||||||||
The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
31-60 | 61-89 | Accruing | Non-accrual | Total | Current | Total | |||||||||||||||||||||||
Days | Days | Loans | Loans | Past Due | Loans | ||||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||||||
90 Days | |||||||||||||||||||||||||||||
or More | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 4,149 | $ | 1,901 | $ | 15 | $ | 18,773 | $ | 24,838 | $ | 1,113,685 | $ | 1,138,523 | |||||||||||||||
Commercial real estate | 5,933 | 233 | 69 | 25,361 | 31,596 | 1,123,319 | 1,154,915 | ||||||||||||||||||||||
Real estate construction | — | — | — | 160 | 160 | 88,415 | 88,575 | ||||||||||||||||||||||
Land development | — | — | — | 2,184 | 2,184 | 4,106 | 6,290 | ||||||||||||||||||||||
Residential mortgage | 2,515 | — | 376 | 6,325 | 9,216 | 950,769 | 959,985 | ||||||||||||||||||||||
Consumer installment | 2,513 | 313 | — | 536 | 3,362 | 740,295 | 743,657 | ||||||||||||||||||||||
Home equity | 2,002 | 985 | 1,075 | 2,296 | 6,358 | 526,106 | 532,464 | ||||||||||||||||||||||
Total | $ | 17,112 | $ | 3,432 | $ | 1,535 | $ | 55,635 | $ | 77,714 | $ | 4,546,695 | $ | 4,624,409 | |||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 6,744 | $ | — | $ | 6,744 | $ | 67,116 | $ | 73,860 | |||||||||||||||
Commercial real estate | — | — | 1,594 | — | 1,594 | 141,856 | 143,450 | ||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 12,593 | 12,593 | ||||||||||||||||||||||
Land development | — | — | 1,977 | — | 1,977 | 2,689 | 4,666 | ||||||||||||||||||||||
Residential mortgage | — | — | 69 | — | 69 | 10,343 | 10,412 | ||||||||||||||||||||||
Consumer installment | 20 | — | — | — | 20 | 1,104 | 1,124 | ||||||||||||||||||||||
Home equity | 325 | 49 | 63 | — | 437 | 27,853 | 28,290 | ||||||||||||||||||||||
Total | $ | 345 | $ | 49 | $ | 10,447 | $ | — | $ | 10,841 | $ | 263,554 | $ | 274,395 | |||||||||||||||
31-60 | 61-89 | Accruing | Non-accrual | Total | Current | Total | |||||||||||||||||||||||
Days | Days | Loans | Loans | Past Due | Loans | ||||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||||||
90 Days | |||||||||||||||||||||||||||||
or More | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 4,748 | $ | 865 | $ | 536 | $ | 18,374 | $ | 24,523 | $ | 1,068,170 | $ | 1,092,693 | |||||||||||||||
Commercial real estate | 8,560 | 1,604 | 190 | 28,598 | 38,952 | 1,046,235 | 1,085,187 | ||||||||||||||||||||||
Real estate construction | — | 4,107 | — | 371 | 4,478 | 72,981 | 77,459 | ||||||||||||||||||||||
Land development | — | — | — | 2,309 | 2,309 | 10,971 | 13,280 | ||||||||||||||||||||||
Residential mortgage | 2,191 | 103 | 537 | 8,921 | 11,752 | 937,129 | 948,881 | ||||||||||||||||||||||
Consumer installment | 2,630 | 359 | — | 676 | 3,665 | 639,381 | 643,046 | ||||||||||||||||||||||
Home equity | 1,452 | 278 | 734 | 2,648 | 5,112 | 487,266 | 492,378 | ||||||||||||||||||||||
Total | $ | 19,581 | $ | 7,316 | $ | 1,997 | $ | 61,897 | $ | 90,791 | $ | 4,262,133 | $ | 4,352,924 | |||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 5,656 | $ | — | $ | 5,656 | $ | 77,958 | $ | 83,614 | |||||||||||||||
Commercial real estate | — | 133 | 1,695 | — | 1,828 | 145,643 | 147,471 | ||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 12,336 | 12,336 | ||||||||||||||||||||||
Land development | — | — | 2,332 | — | 2,332 | 4,454 | 6,786 | ||||||||||||||||||||||
Residential mortgage | — | — | 61 | — | 61 | 11,481 | 11,542 | ||||||||||||||||||||||
Consumer installment | 3 | 51 | — | — | 54 | 1,669 | 1,723 | ||||||||||||||||||||||
Home equity | 394 | — | 43 | — | 437 | 30,788 | 31,225 | ||||||||||||||||||||||
Total | $ | 397 | $ | 184 | $ | 9,787 | $ | — | $ | 10,368 | $ | 284,329 | $ | 294,697 | |||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 6,572 | $ | 2,251 | $ | 1 | $ | 11,052 | $ | 19,876 | $ | 967,034 | $ | 986,910 | |||||||||||||||
Commercial real estate | 9,001 | 3,974 | 78 | 28,498 | 41,551 | 962,021 | 1,003,572 | ||||||||||||||||||||||
Real estate construction | — | — | — | 183 | 183 | 60,691 | 60,874 | ||||||||||||||||||||||
Land development | — | — | — | 3,434 | 3,434 | 15,500 | 18,934 | ||||||||||||||||||||||
Residential mortgage | 2,871 | 67 | 164 | 9,241 | 12,343 | 873,851 | 886,194 | ||||||||||||||||||||||
Consumer installment | 2,564 | 359 | — | 552 | 3,475 | 571,431 | 574,906 | ||||||||||||||||||||||
Home equity | 1,520 | 349 | 689 | 3,064 | 5,622 | 453,621 | 459,243 | ||||||||||||||||||||||
Total | $ | 22,528 | $ | 7,000 | $ | 932 | $ | 56,024 | $ | 86,484 | $ | 3,904,149 | $ | 3,990,633 | |||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 2,328 | $ | — | $ | 2,328 | $ | 102,656 | $ | 104,984 | |||||||||||||||
Commercial real estate | — | — | 3,389 | — | 3,389 | 165,386 | 168,775 | ||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 12,574 | 12,574 | ||||||||||||||||||||||
Land development | 2,080 | — | 2,564 | — | 4,644 | 3,603 | 8,247 | ||||||||||||||||||||||
Residential mortgage | 198 | 78 | — | — | 276 | 12,346 | 12,622 | ||||||||||||||||||||||
Consumer installment | 3 | — | — | — | 3 | 2,332 | 2,335 | ||||||||||||||||||||||
Home equity | 297 | — | 119 | — | 416 | 35,285 | 35,701 | ||||||||||||||||||||||
Total | $ | 2,578 | $ | 78 | $ | 8,400 | $ | — | $ | 11,056 | $ | 334,182 | $ | 345,238 | |||||||||||||||
Loans Modified Under Troubled Debt Restructurings (TDRs) | |||||||||||||||||||||||||||||
The following schedule presents the Corporation’s loans reported as TDRs at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
Performing TDRs | Non-Performing TDRs | Nonaccrual TDRs | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Commercial loan portfolio | $ | 29,296 | $ | 11,049 | $ | 40,351 | $ | 80,696 | |||||||||||||||||||||
Consumer loan portfolio | 14,837 | 5,516 | 3,334 | 23,687 | |||||||||||||||||||||||||
Total | $ | 44,133 | $ | 16,565 | $ | 43,685 | $ | 104,383 | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Commercial loan portfolio | $ | 26,839 | $ | 13,414 | $ | 31,961 | $ | 72,214 | |||||||||||||||||||||
Consumer loan portfolio | 12,732 | 4,676 | 5,321 | 22,729 | |||||||||||||||||||||||||
Total | $ | 39,571 | $ | 18,090 | $ | 37,282 | $ | 94,943 | |||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Commercial loan portfolio | $ | 18,497 | $ | 19,140 | $ | 34,678 | $ | 72,315 | |||||||||||||||||||||
Consumer loan portfolio | 14,160 | 3,246 | 5,378 | 22,784 | |||||||||||||||||||||||||
Total | $ | 32,657 | $ | 22,386 | $ | 40,056 | $ | 95,099 | |||||||||||||||||||||
The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | ||||||||||||||||||||||||
of Loans | Modification | Modification | of Loans | Modification | Modification | ||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 15 | $ | 3,575 | $ | 3,575 | 27 | $ | 11,931 | $ | 11,931 | |||||||||||||||||||
Commercial real estate | 12 | 3,134 | 3,134 | 21 | 5,924 | 5,924 | |||||||||||||||||||||||
Land development | — | — | — | 1 | 72 | 72 | |||||||||||||||||||||||
Subtotal – commercial loan portfolio | 27 | 6,709 | 6,709 | 49 | 17,927 | 17,927 | |||||||||||||||||||||||
Consumer loan portfolio | 63 | 1,649 | 1,648 | 93 | 2,636 | 2,626 | |||||||||||||||||||||||
Total | 90 | $ | 8,358 | $ | 8,357 | 142 | $ | 20,563 | $ | 20,553 | |||||||||||||||||||
Three Months Ended June 30, 2013 (As Revised) | Six Months Ended June 30, 2013 (As Revised) | ||||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | ||||||||||||||||||||||||
of Loans | Modification | Modification | of Loans | Modification | Modification | ||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 8 | $ | 2,753 | $ | 2,753 | 19 | $ | 4,359 | $ | 4,359 | |||||||||||||||||||
Commercial real estate | 10 | 4,019 | 4,019 | 24 | 7,663 | 7,663 | |||||||||||||||||||||||
Real estate construction | — | — | — | 2 | 364 | 364 | |||||||||||||||||||||||
Land development | 2 | 1,526 | 1,526 | 4 | 1,958 | 1,958 | |||||||||||||||||||||||
Subtotal – commercial loan portfolio | 20 | 8,298 | 8,298 | 49 | 14,344 | 14,344 | |||||||||||||||||||||||
Consumer loan portfolio | 19 | 765 | 745 | 37 | 2,156 | 2,100 | |||||||||||||||||||||||
Total | 39 | $ | 9,063 | $ | 9,043 | 86 | $ | 16,500 | $ | 16,444 | |||||||||||||||||||
The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification and post-modification recorded investment of residential mortgage TDRs represents impairment recognized by the Corporation through the provision for loan losses computed based on a loan's post-modification present value of expected future cash flows discounted at the loan's original effective interest rate. | |||||||||||||||||||||||||||||
The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2014 and 2013, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default: | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Number of | Principal Balance at End of Period | Number of | Principal Balance at End of Period | ||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 5 | $ | 771 | 6 | $ | 875 | |||||||||||||||||||||||
Commercial real estate | 3 | 603 | 5 | 2,273 | |||||||||||||||||||||||||
Subtotal – commercial loan portfolio | 8 | 1,374 | 11 | 3,148 | |||||||||||||||||||||||||
Consumer loan portfolio | 3 | 80 | 3 | 80 | |||||||||||||||||||||||||
Total | 11 | $ | 1,454 | 14 | $ | 3,228 | |||||||||||||||||||||||
Three Months Ended June 30, 2013 (As Revised) | Six Months Ended June 30, 2013 (As Revised) | ||||||||||||||||||||||||||||
Number of | Principal Balance at End of Period | Number of | Principal Balance at End of Period | ||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | — | $ | — | 17 | $ | 1,053 | |||||||||||||||||||||||
Commercial real estate | — | — | 1 | 126 | |||||||||||||||||||||||||
Real estate construction | — | — | 1 | 160 | |||||||||||||||||||||||||
Land development | 2 | 1,526 | 2 | 1,526 | |||||||||||||||||||||||||
Subtotal – commercial loan portfolio | 2 | 1,526 | 21 | 2,865 | |||||||||||||||||||||||||
Consumer loan portfolio | 4 | 19 | 9 | 503 | |||||||||||||||||||||||||
Total | 6 | $ | 1,545 | 30 | $ | 3,368 | |||||||||||||||||||||||
During the three and six months ended June 30, 2013, the Corporation had excluded nonaccrual TDRs from the schedule of TDRs that were modified during the three and six months ended June 30, 2013 and the schedule of TDRs for which there was a payment default during the three and six months ended June 30, 2013. The Corporation has revised the amounts reported for the three and six months ended June 30, 2013 in these schedules to include activity related to all TDRs, including nonaccrual TDRs. | |||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||
The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2014 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2014 by impairment evaluation method. | |||||||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Loan | Loan | ||||||||||||||||||||||||||||
Portfolio | Portfolio | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Changes in allowance for loan losses for the three months ended June 30, 2014: | |||||||||||||||||||||||||||||
Beginning balance | $ | 45,010 | $ | 29,233 | $ | 4,230 | $ | 78,473 | |||||||||||||||||||||
Provision for loan losses | 439 | 1,287 | (226 | ) | 1,500 | ||||||||||||||||||||||||
Charge-offs | (1,814 | ) | (1,561 | ) | — | (3,375 | ) | ||||||||||||||||||||||
Recoveries | 589 | 606 | — | 1,195 | |||||||||||||||||||||||||
Ending balance | $ | 44,224 | $ | 29,565 | $ | 4,004 | $ | 77,793 | |||||||||||||||||||||
Changes in allowance for loan losses for the six months ended June 30, 2014: | |||||||||||||||||||||||||||||
Beginning balance | $ | 44,482 | $ | 30,145 | $ | 4,445 | $ | 79,072 | |||||||||||||||||||||
Provision for loan losses | 1,399 | 2,142 | (441 | ) | 3,100 | ||||||||||||||||||||||||
Charge-offs | (3,023 | ) | (3,824 | ) | — | (6,847 | ) | ||||||||||||||||||||||
Recoveries | 1,366 | 1,102 | — | 2,468 | |||||||||||||||||||||||||
Ending balance | $ | 44,224 | $ | 29,565 | $ | 4,004 | $ | 77,793 | |||||||||||||||||||||
Allowance for loan losses balance at June 30, 2014 attributable to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,340 | $ | 379 | $ | — | $ | 1,719 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 42,884 | 28,686 | 4,004 | 75,574 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | 500 | — | 500 | |||||||||||||||||||||||||
Total | $ | 44,224 | $ | 29,565 | $ | 4,004 | $ | 77,793 | |||||||||||||||||||||
Recorded investment (loan balance) at June 30, 2014: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 86,823 | $ | 20,353 | $ | — | $ | 107,176 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 2,301,480 | 2,215,753 | — | 4,517,233 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 234,569 | 39,826 | — | 274,395 | |||||||||||||||||||||||||
Total | $ | 2,622,872 | $ | 2,275,932 | $ | — | $ | 4,898,804 | |||||||||||||||||||||
The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2013 by impairment evaluation method. | |||||||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Loan | Loan | ||||||||||||||||||||||||||||
Portfolio | Portfolio | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Allowance for loan losses balance at December 31, 2013 attributable to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,081 | $ | 510 | $ | — | $ | 1,591 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 43,401 | 29,135 | 4,445 | 76,981 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | 500 | — | 500 | |||||||||||||||||||||||||
Total | $ | 44,482 | $ | 30,145 | $ | 4,445 | $ | 79,072 | |||||||||||||||||||||
Recorded investment (loan balance) at December 31, 2013: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 89,905 | $ | 17,408 | $ | — | $ | 107,313 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 2,178,714 | 2,066,897 | — | 4,245,611 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 250,207 | 44,490 | — | 294,697 | |||||||||||||||||||||||||
Total | $ | 2,518,826 | $ | 2,128,795 | $ | — | $ | 4,647,621 | |||||||||||||||||||||
The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2013 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2013 by impairment evaluation method. | |||||||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Loan | Loan | ||||||||||||||||||||||||||||
Portfolio | Portfolio | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Changes in allowance for loan losses for the three months ended June 30, 2013: | |||||||||||||||||||||||||||||
Beginning balance | $ | 49,107 | $ | 28,852 | $ | 4,875 | $ | 82,834 | |||||||||||||||||||||
Provision for loan losses | 568 | 1,648 | 784 | 3,000 | |||||||||||||||||||||||||
Charge-offs | (3,221 | ) | (2,140 | ) | — | (5,361 | ) | ||||||||||||||||||||||
Recoveries | 1,326 | 385 | — | 1,711 | |||||||||||||||||||||||||
Ending balance | $ | 47,780 | $ | 28,745 | $ | 5,659 | $ | 82,184 | |||||||||||||||||||||
Changes in allowance for loan losses for the six months ended June 30, 2013: | |||||||||||||||||||||||||||||
Beginning balance | $ | 49,975 | $ | 29,333 | $ | 5,183 | $ | 84,491 | |||||||||||||||||||||
Provision for loan losses | 3,005 | 2,519 | 476 | 6,000 | |||||||||||||||||||||||||
Charge-offs | (6,737 | ) | (4,098 | ) | — | (10,835 | ) | ||||||||||||||||||||||
Recoveries | 1,537 | 991 | — | 2,528 | |||||||||||||||||||||||||
Ending balance | $ | 47,780 | $ | 28,745 | $ | 5,659 | $ | 82,184 | |||||||||||||||||||||
Allowance for loan losses balance at June 30, 2013 attributable to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 3,852 | $ | 582 | $ | — | $ | 4,434 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 43,928 | 27,663 | 5,659 | 77,250 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | 500 | — | 500 | |||||||||||||||||||||||||
Total | $ | 47,780 | $ | 28,745 | $ | 5,659 | $ | 82,184 | |||||||||||||||||||||
Recorded investment (loan balance) at June 30, 2013: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 80,804 | $ | 17,406 | $ | — | $ | 98,210 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 1,989,486 | 1,902,937 | — | 3,892,423 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 294,580 | 50,658 | — | 345,238 | |||||||||||||||||||||||||
Total | $ | 2,364,870 | $ | 1,971,001 | $ | — | $ | 4,335,871 | |||||||||||||||||||||
The allowance attributable to acquired loans of $0.5 million at June 30, 2014, December 31, 2013 and June 30, 2013 was primarily attributable to two consumer loan pools in the acquired loan portfolio that had a decline in expected cash flows. Management determined that the overall credit quality of the acquired loan portfolio had improved at June 30, 2014, which has resulted in an improvement in expected cash flows of loan pools in the acquired commercial loan portfolio. Accordingly, management reclassified $10.0 million during the six months ended June 30, 2014 from the nonaccretable difference to the accretable yield for these acquired commercial loan pools, which will increase amounts recognized into interest income over the estimated remaining lives of these loan pools. There were no material changes in expected cash flows for the remaining acquired loan pools at June 30, 2014, December 31, 2013 or June 30, 2013. |
Intangible_Assets
Intangible Assets | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Intangible Assets | |||||||||||||||||
The Corporation has the following types of intangible assets: goodwill, core deposit intangible assets and mortgage servicing rights (MSRs). Goodwill and core deposit intangible assets arose as the result of business combinations or other acquisitions. MSRs arose as a result of selling residential mortgage loans in the secondary market while retaining the right to service these loans and receive servicing income over the life of the loan. Amortization is recorded on the core deposit intangible assets and MSRs. Goodwill is not amortized but is evaluated at least annually for impairment. The Corporation’s most recent annual goodwill impairment test performed as of October 31, 2013 did not indicate that an impairment of goodwill existed. The Corporation also determined that no triggering events have occurred that indicated impairment from the most recent valuation date through June 30, 2014 and that the Corporation's goodwill was not impaired at June 30, 2014. | |||||||||||||||||
The following table shows the net carrying value of the Corporation’s intangible assets: | |||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Goodwill | $ | 120,164 | $ | 120,164 | $ | 120,164 | |||||||||||
Other intangible assets: | |||||||||||||||||
Core deposit intangible assets | $ | 9,110 | $ | 10,001 | $ | 10,933 | |||||||||||
Mortgage servicing rights | 3,344 | 3,423 | 3,421 | ||||||||||||||
Total other intangible assets | $ | 12,454 | $ | 13,424 | $ | 14,354 | |||||||||||
The following table sets forth the carrying amount, accumulated amortization and amortization expense of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions: | |||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Gross original amount | $ | 18,659 | $ | 18,659 | $ | 18,659 | |||||||||||
Accumulated amortization | 9,549 | 8,658 | 7,726 | ||||||||||||||
Carrying amount | $ | 9,110 | $ | 10,001 | $ | 10,933 | |||||||||||
Amortization expense for the three months ended June 30 | $ | 446 | $ | 484 | |||||||||||||
Amortization expense for the six months ended June 30 | $ | 891 | $ | 977 | |||||||||||||
The estimated future amortization expense on core deposit intangible assets for periods ending after June 30, 2014 is as follows: 2014 — $0.8 million; 2015 — $1.7 million; 2016 — $1.5 million; 2017 — $1.2 million; 2018 — $1.2 million; 2019 and thereafter — $2.7 million. | |||||||||||||||||
The following shows the net carrying value and fair value of MSRs and the total loans that the Corporation is servicing for others: | |||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Net carrying value of MSRs | $ | 3,344 | $ | 3,423 | $ | 3,421 | |||||||||||
Fair value of MSRs | $ | 6,433 | $ | 6,878 | $ | 6,417 | |||||||||||
Loans serviced for others that have servicing rights capitalized | $ | 871,158 | $ | 886,730 | $ | 899,823 | |||||||||||
The following table shows the activity for capitalized MSRs: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at beginning of period | $ | 3,316 | $ | 3,485 | $ | 3,423 | $ | 3,478 | |||||||||
Additions | 278 | 445 | 421 | 960 | |||||||||||||
Amortization | (250 | ) | (509 | ) | (500 | ) | (1,017 | ) | |||||||||
Balance at end of period | $ | 3,344 | $ | 3,421 | $ | 3,344 | $ | 3,421 | |||||||||
There was no impairment valuation allowance recorded on MSRs as of June 30, 2014, December 31, 2013 or June 30, 2013. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||
The components of accumulated other comprehensive loss, net of related tax benefit/expense, were as follows: | |||||||||||||
June 30, | December 31, | June 30, | |||||||||||
2014 | 2013 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $431 at June 30, 2014, $(1,335) at December 31, 2013 and $(486) at June 30, 2013 | $ | 800 | $ | (2,480 | ) | $ | (905 | ) | |||||
Pension and other postretirement benefits adjustment, net of related tax benefit of $10,117 at June 30, 2014, $9,714 at December 31, 2013 and $18,394 at June 30, 2013 | (18,788 | ) | (18,040 | ) | (34,160 | ) | |||||||
Accumulated other comprehensive loss | $ | (17,988 | ) | $ | (20,520 | ) | $ | (35,065 | ) |
Regulatory_Capital
Regulatory Capital | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||||||||||||
Regulatory Capital | ' | |||||||||||||||||||||
Regulatory Capital | ||||||||||||||||||||||
Federal and state banking regulations place certain restrictions on the transfer of assets, in the form of dividends, loans, or advances, from Chemical Bank to the Corporation. As of June 30, 2014, substantially all of the assets of Chemical Bank were restricted from transfer to the Corporation in the form of loans or advances. Dividends from Chemical Bank are the principal source of funds for the Corporation. At June 30, 2014, Chemical Bank was "well-capitalized" as defined by federal banking regulations. In addition to the statutory limits, the Corporation considers the overall financial and capital position of Chemical Bank prior to making any cash dividend decisions. | ||||||||||||||||||||||
The Corporation and Chemical Bank are subject to various regulatory capital requirements administered by federal banking agencies. Under these capital requirements, Chemical Bank must meet specific capital guidelines that involve quantitative measures of assets and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, capital amounts and classifications are subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements. | ||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require minimum ratios of Tier 1 capital to average assets (Leverage Ratio) and Tier 1 and Total capital to risk-weighted assets. These capital guidelines assign risk weights to on- and off-balance sheet items in arriving at total risk-weighted assets. Minimum capital levels are based upon the perceived risk of various asset categories and certain off-balance sheet instruments. Risk weighted assets of the Corporation totaled $4.90 billion, $4.64 billion and $4.36 billion at June 30, 2014, December 31, 2013 and June 30, 2013, respectively. | ||||||||||||||||||||||
At June 30, 2014, December 31, 2013 and June 30, 2013, Chemical Bank’s capital ratios exceeded the quantitative capital ratios required for an institution to be considered “well-capitalized.” Significant factors that may affect capital adequacy include, but are not limited to, a disproportionate growth in assets versus capital and a change in mix or credit quality of assets. | ||||||||||||||||||||||
The summary below compares the Corporation’s and Chemical Bank’s actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy: | ||||||||||||||||||||||
Actual | Minimum Required for Capital Adequacy Purposes | Required to be Well Capitalized Under Prompt Corrective Action Regulations | ||||||||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | |||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||
Total Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | $ | 748,332 | 15.3 | % | $ | 391,911 | 8 | % | N/A | N/A | ||||||||||||
Chemical Bank | 601,561 | 12.3 | 391,305 | 8 | $ | 489,131 | 10 | % | ||||||||||||||
Tier 1 Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | 686,892 | 14 | 195,955 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 540,214 | 11 | 195,653 | 4 | 293,479 | 6 | ||||||||||||||||
Leverage Ratio: | ||||||||||||||||||||||
Corporation | 686,892 | 11.2 | 244,757 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 540,214 | 8.8 | 244,604 | 4 | 305,755 | 5 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||
Total Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | $ | 649,836 | 14 | % | $ | 371,465 | 8 | % | N/A | N/A | ||||||||||||
Chemical Bank | 579,494 | 12.5 | 370,881 | 8 | $ | 463,601 | 10 | % | ||||||||||||||
Tier 1 Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | 591,535 | 12.7 | 185,732 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 521,283 | 11.2 | 185,440 | 4 | 278,160 | 6 | ||||||||||||||||
Leverage Ratio: | ||||||||||||||||||||||
Corporation | 591,535 | 9.9 | 239,010 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 521,283 | 8.7 | 238,884 | 4 | 298,605 | 5 | ||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||
Total Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | $ | 572,503 | 13.1 | % | $ | 348,442 | 8 | % | N/A | N/A | ||||||||||||
Chemical Bank | 556,536 | 12.8 | 347,865 | 8 | $ | 434,831 | 10 | % | ||||||||||||||
Tier 1 Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | 517,716 | 11.9 | 174,221 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 501,839 | 11.5 | 173,932 | 4 | 260,899 | 6 | ||||||||||||||||
Leverage Ratio: | ||||||||||||||||||||||
Corporation | 517,716 | 9.1 | 228,436 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 501,839 | 8.8 | 228,126 | 4 | 285,157 | 5 | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||
Fair value, as defined by GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for market activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. | ||||||||||||||||||||||||||
The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Investment securities — available-for-sale and loans held-for-sale are recorded at fair value on a recurring basis. Additionally, the Corporation may be required to record other assets, such as impaired loans, goodwill, other intangible assets, other real estate and repossessed assets, at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. | ||||||||||||||||||||||||||
The Corporation determines the fair value of its financial instruments based on a three-level hierarchy established by GAAP. The classification and disclosure of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management’s estimates about market data. The three levels of inputs that may be used to measure fair value within the GAAP hierarchy are as follows: | ||||||||||||||||||||||||||
Level 1 | Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 valuations for the Corporation would include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Valuations are obtained from a third-party pricing service for these investment securities. | |||||||||||||||||||||||||
Level 2 | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 valuations for the Corporation include government sponsored agency securities, including securities issued by the Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Federal Farm Credit Bank, Student Loan Marketing Corporation and the Small Business Administration, securities issued by certain state and political subdivisions, residential mortgage-backed securities, collateralized mortgage obligations, corporate bonds and preferred stock. Valuations are obtained from a third-party pricing service for these investment securities. | |||||||||||||||||||||||||
Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, yield curves and similar techniques. The determination of fair value requires management judgment or estimation and generally is corroborated by external data, which includes third-party pricing services. Level 3 valuations for the Corporation include securities issued by certain state and political subdivisions, trust preferred investment securities, impaired loans, goodwill, core deposit intangible assets, MSRs and other real estate and repossessed assets. | |||||||||||||||||||||||||
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Corporation’s financial assets and financial liabilities carried at fair value and all financial instruments disclosed at fair value. In general, fair value is based upon quoted market prices, where available. If quoted market prices are not available, fair value is based upon third-party pricing services when available. Fair value may also be based on internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be required to record financial instruments at fair value. Any such valuation adjustments are applied consistently over time. The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. | ||||||||||||||||||||||||||
While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the fair value amounts may change significantly after the date of the statement of financial position from the amounts reported in the consolidated financial statements and related notes. | ||||||||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||
Investment securities — available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are generally measured using independent pricing models or other model-based valuation techniques that include market inputs, such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events. | ||||||||||||||||||||||||||
The Corporation elected the fair value option for all residential mortgage loans held-for-sale originated on or after July 1, 2012. Accordingly, loans held-for-sale are recorded at fair value on a recurring basis. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations. | ||||||||||||||||||||||||||
Disclosure of Recurring Basis Fair Value Measurements | ||||||||||||||||||||||||||
For assets measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets were as follows: | ||||||||||||||||||||||||||
Fair Value Measurements – Recurring Basis | ||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||
In Active | Other | Unobservable | ||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||
Investment securities – available-for-sale: | ||||||||||||||||||||||||||
Government sponsored agencies | $ | — | $ | 88,708 | $ | — | $ | 88,708 | ||||||||||||||||||
State and political subdivisions | — | 41,608 | — | 41,608 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 265,368 | — | 265,368 | ||||||||||||||||||||||
Collateralized mortgage obligations | — | 153,283 | — | 153,283 | ||||||||||||||||||||||
Corporate bonds | — | 65,352 | — | 65,352 | ||||||||||||||||||||||
Preferred stock | — | 1,656 | — | 1,656 | ||||||||||||||||||||||
Total investment securities – available-for-sale | — | 615,975 | — | 615,975 | ||||||||||||||||||||||
Loans held-for-sale | — | 6,329 | — | 6,329 | ||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 622,304 | $ | — | $ | 622,304 | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Investment securities – available-for-sale: | ||||||||||||||||||||||||||
Government sponsored agencies | $ | — | $ | 93,763 | $ | — | $ | 93,763 | ||||||||||||||||||
State and political subdivisions | — | 43,798 | — | 43,798 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 299,366 | — | 299,366 | ||||||||||||||||||||||
Collateralized mortgage obligations | — | 180,941 | — | 180,941 | ||||||||||||||||||||||
Corporate bonds | — | 65,275 | — | 65,275 | ||||||||||||||||||||||
Preferred stock | — | 1,427 | — | 1,427 | ||||||||||||||||||||||
Total investment securities – available-for-sale | — | 684,570 | — | 684,570 | ||||||||||||||||||||||
Loans held-for-sale | — | 5,219 | — | 5,219 | ||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 689,789 | $ | — | $ | 689,789 | ||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||
Investment securities – available-for-sale: | ||||||||||||||||||||||||||
Government sponsored agencies | $ | — | $ | 92,088 | $ | — | $ | 92,088 | ||||||||||||||||||
State and political subdivisions | — | 45,780 | — | 45,780 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 308,372 | — | 308,372 | ||||||||||||||||||||||
Collateralized mortgage obligations | — | 220,515 | — | 220,515 | ||||||||||||||||||||||
Corporate bonds | — | 65,515 | — | 65,515 | ||||||||||||||||||||||
Preferred stock | — | 1,782 | — | 1,782 | ||||||||||||||||||||||
Total investment securities – available-for-sale | — | 734,052 | — | 734,052 | ||||||||||||||||||||||
Loans held-for-sale | — | 9,180 | — | 9,180 | ||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 743,232 | $ | — | $ | 743,232 | ||||||||||||||||||
There were no liabilities recorded at fair value on a recurring basis at June 30, 2014, December 31, 2013 or June 30, 2013. | ||||||||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||||
The Corporation does not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allocation of the allowance (valuation allowance) may be established or a portion of the loan is charged off. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including the loan’s observable market price, the fair value of the collateral or the present value of the expected future cash flows discounted at the loan’s effective interest rate. Those impaired loans not requiring a valuation allowance represent loans for which the fair value of the expected repayments or collateral exceed the remaining carrying amount of such loans. Impaired loans where a valuation allowance is established or a portion of the loan is charged off based on the fair value of collateral are subject to nonrecurring fair value measurement and require classification in the fair value hierarchy. The Corporation records impaired loans as Level 3 valuations as there is generally no observable market price or independent appraised value, or management determines the fair value of the collateral is further impaired below the appraised value. When management determines the fair value of the collateral is further impaired below appraised value, discount factors ranging between 70% and 80% of the appraised value are used depending on the nature of the collateral and the age of the most recent appraisal. | ||||||||||||||||||||||||||
Goodwill is subject to impairment testing on an annual basis. The assessment of goodwill for impairment requires a significant degree of judgment. In the event the assessment indicates that it is more-likely-than-not that the fair value is less than the carrying value, the asset is considered impaired and recorded at fair value. Goodwill that is impaired and subject to nonrecurring fair value measurements is a Level 3 valuation. At June 30, 2014, December 31, 2013 and June 30, 2013, no goodwill was impaired, and therefore, goodwill was not recorded at fair value on a nonrecurring basis. | ||||||||||||||||||||||||||
Other intangible assets consist of core deposit intangible assets and MSRs. These items are both recorded at fair value when initially recorded. Subsequently, core deposit intangible assets are amortized primarily on an accelerated basis over periods ranging from ten to fifteen years and are subject to impairment testing whenever events or changes in circumstances indicate that the carrying amount exceeds the fair value of the asset. If core deposit intangible asset impairment is identified, the Corporation classifies impaired core deposit intangible assets subject to nonrecurring fair value measurements as Level 3 valuations. The fair value of MSRs is initially estimated using a model that calculates the net present value of estimated future cash flows using various assumptions, including prepayment speeds, the discount rate and servicing costs. If the valuation model reflects a value less than the carrying value, MSRs are adjusted to fair value, as determined by the model, through a valuation allowance. The Corporation classifies MSRs subject to nonrecurring fair value measurements as Level 3 valuations. At June 30, 2014, December 31, 2013 and June 30, 2013, there was no impairment identified for core deposit intangible assets or MSRs and, therefore, no other intangible assets were recorded at fair value on a nonrecurring basis. | ||||||||||||||||||||||||||
The carrying amounts for other real estate (ORE) and repossessed assets (RA) are reported in the consolidated statements of financial position under “Interest receivable and other assets.” ORE and RA include real estate and other types of assets repossessed by the Corporation. ORE and RA are recorded at the lower of cost or fair value upon the transfer of a loan to ORE or RA and, subsequently, ORE and RA continue to be measured and carried at the lower of cost or fair value. Fair value is based upon independent market prices, appraised values of the property or management’s estimation of the value of the property. The Corporation records ORE and RA as Level 3 valuations as management generally determines that the fair value of the property is impaired below the appraised value. When management determines the fair value of the property is further impaired below appraised value, discount factors ranging between 70% and 75% of the appraised value are used depending on the nature of the property and the age of the most recent appraisal. | ||||||||||||||||||||||||||
Disclosure of Nonrecurring Basis Fair Value Measurements | ||||||||||||||||||||||||||
For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets were as follows: | ||||||||||||||||||||||||||
Fair Value Measurements – Nonrecurring Basis | ||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||
In Active | Other | Unobservable | ||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 29,789 | $ | 29,789 | ||||||||||||||||||
Other real estate/repossessed assets | — | — | 10,392 | 10,392 | ||||||||||||||||||||||
Total | $ | — | $ | — | $ | 40,181 | $ | 40,181 | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 28,852 | $ | 28,852 | ||||||||||||||||||
Other real estate/repossessed assets | — | — | 9,776 | 9,776 | ||||||||||||||||||||||
Total | $ | — | $ | — | $ | 38,628 | $ | 38,628 | ||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 41,704 | $ | 41,704 | ||||||||||||||||||
Other real estate/repossessed assets | — | — | 13,659 | 13,659 | ||||||||||||||||||||||
Total | $ | — | $ | — | $ | 55,363 | $ | 55,363 | ||||||||||||||||||
There were no liabilities recorded at fair value on a nonrecurring basis at June 30, 2014, December 31, 2013 and June 30, 2013. | ||||||||||||||||||||||||||
Disclosures about Fair Value of Financial Instruments | ||||||||||||||||||||||||||
GAAP requires disclosures about the estimated fair value of the Corporation's financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. However, the method of estimating fair value for certain financial instruments, such as loans, that are not required to be measured on a recurring or nonrecurring basis, as prescribed by ASC 820, Fair Value Measurements and Disclosures, does not incorporate the exit-price concept of fair value. The Corporation utilized the fair value hierarchy in computing the fair values of its financial instruments. In cases where quoted market prices were not available, the Corporation employed present value methods using unobservable inputs requiring management's judgment to estimate the fair values of its financial instruments, which are considered Level 3 valuations. These Level 3 valuations are affected by the assumptions made and, accordingly, do not necessarily indicate amounts that could be realized in a current market exchange. It is also the Corporation's general practice and intent to hold the majority of its financial instruments until maturity and, therefore, the Corporation does not expect to realize the estimated amounts disclosed. | ||||||||||||||||||||||||||
The methodologies for estimating the fair value of financial assets and financial liabilities on a recurring or nonrecurring basis are discussed above. At June 30, 2014, December 31, 2013 and June 30, 2013, the estimated fair values of cash and cash equivalents, interest receivable and interest payable approximated their carrying values at those dates. The methodologies for other financial assets and financial liabilities follow. | ||||||||||||||||||||||||||
Fair value measurement for investment securities — held-to-maturity is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques that include market inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events. Fair value measurements using Level 2 valuations of investment securities — held-to-maturity include the majority of the Corporation's investment securities issued by state and political subdivisions. Level 3 valuations include certain securities issued by state and political subdivisions and trust preferred investment securities. | ||||||||||||||||||||||||||
Fair value measurements of nonmarketable equity securities, which consisted of Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, are based on their redeemable value, which is cost. The market for these securities is restricted to the issuer of the stock and subject to impairment evaluation. It is not practicable to determine the fair value of these securities within the fair value hierarchy due to the restrictions placed on their transferability. | ||||||||||||||||||||||||||
Loans held-for-sale are carried at fair value, as the Corporation elected the fair value option on these loans. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations. | ||||||||||||||||||||||||||
The fair value of variable interest rate loans that reprice regularly with changes in market interest rates are based on carrying values. The fair values for fixed interest rate loans are estimated using discounted cash flow analyses, using the Corporation’s interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The resulting fair value amounts are adjusted to estimate the impact of changes in the credit quality of borrowers after the loans were originated. The fair value measurements for loans are Level 3 valuations. | ||||||||||||||||||||||||||
The fair values of deposit accounts without defined maturities, such as interest- and noninterest-bearing checking, savings and money market accounts, are equal to the amounts payable on demand. Fair value measurements for fixed-interest rate time deposits with defined maturities are based on the discounted value of contractual cash flows, using the Corporation’s interest rates currently being offered for deposits of similar maturities, and are Level 3 valuations. The fair values for variable-interest rate time deposits with defined maturities approximate their carrying amounts. | ||||||||||||||||||||||||||
Short-term borrowings consist of securities sold under agreements to repurchase and federal funds purchased. Fair value measurements for short-term borrowings are based on the present value of future estimated cash flows using current interest rates offered to the Corporation for debt with similar terms and are Level 2 valuations. | ||||||||||||||||||||||||||
Fair value measurements for FHLB advances are estimated based on the present value of future estimated cash flows using current interest rates offered to the Corporation for debt with similar terms and are Level 2 valuations. | ||||||||||||||||||||||||||
The Corporation’s unused commitments to extend credit, standby letters of credit and loan commitments have no carrying amount and have been estimated to have no realizable fair value. Historically, a majority of the unused commitments to extend credit have not been drawn upon and, generally, the Corporation does not receive fees in connection with these commitments other than standby letter of credit fees, which are not significant. | ||||||||||||||||||||||||||
Fair value measurements have not been made for items that are not defined by GAAP as financial instruments, including such items as the value of the Corporation’s Wealth Management department and the value of the Corporation’s core deposit base. The Corporation believes it is impractical to estimate a representative fair value for these types of assets, even though management believes they add significant value to the Corporation. | ||||||||||||||||||||||||||
A summary of carrying amounts and estimated fair values of the Corporation’s financial instruments included in the consolidated statements of financial position was as follows: | ||||||||||||||||||||||||||
Level in Fair Value Measurement | 30-Jun-14 | 31-Dec-13 | 30-Jun-13 | |||||||||||||||||||||||
Hierarchy | Carrying | Fair | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 140,294 | $ | 140,294 | $ | 310,788 | $ | 310,788 | $ | 206,957 | $ | 206,957 | |||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Available-for-sale | Level 2 | 615,975 | 615,975 | 684,570 | 684,570 | 734,052 | 734,052 | |||||||||||||||||||
Held-to-maturity | Level 2 | 297,630 | 297,186 | 263,405 | 262,021 | 264,215 | 265,147 | |||||||||||||||||||
Held-to-maturity | Level 3 | 10,500 | 6,775 | 10,500 | 6,250 | 10,500 | 6,250 | |||||||||||||||||||
Nonmarketable equity securities | NA | 25,572 | 25,572 | 25,572 | 25,572 | 25,572 | 25,572 | |||||||||||||||||||
Loans held-for-sale | Level 2 | 6,329 | 6,329 | 5,219 | 5,219 | 9,180 | 9,180 | |||||||||||||||||||
Net loans | Level 3 | 4,821,011 | 4,826,672 | 4,568,549 | 4,575,532 | 4,253,687 | 4,260,726 | |||||||||||||||||||
Interest receivable | Level 2 | 15,827 | 15,827 | 15,748 | 15,748 | 15,844 | 15,844 | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits without defined maturities | Level 2 | $ | 3,814,013 | $ | 3,814,013 | $ | 3,790,454 | $ | 3,790,454 | $ | 3,434,266 | $ | 3,434,266 | |||||||||||||
Time deposits | Level 3 | 1,278,900 | 1,285,992 | 1,331,931 | 1,340,746 | 1,379,919 | 1,390,381 | |||||||||||||||||||
Interest payable | Level 2 | 735 | 735 | 868 | 868 | 1,085 | 1,085 | |||||||||||||||||||
Short-term borrowings | Level 2 | 305,422 | 305,422 | 327,428 | 327,428 | 346,995 | 346,995 | |||||||||||||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Common Share | ' | |||||||||||||||
Earnings Per Common Share | ||||||||||||||||
Basic earnings per common share for the Corporation is computed by dividing net income by the weighted average number of common shares outstanding during the period. Basic earnings per common share excludes any dilutive effect of common stock equivalents. | ||||||||||||||||
Diluted earnings per common share for the Corporation is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the dilutive effect of common stock equivalents using the treasury stock method. Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Corporation’s share-based compensation plans, restricted stock units that may be converted to stock, stock to be issued under the deferred stock compensation plan for non-employee directors and stock to be issued under the stock purchase plan for non-employee advisory directors. For any period in which a net loss is recorded, the assumed exercise of stock options, restricted stock units that may be converted to stock and stock to be issued under the deferred stock compensation plan and the stock purchase plan would have an anti-dilutive impact on the net loss per common share and thus are excluded in the diluted earnings per common share calculation. | ||||||||||||||||
The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Numerator for both basic and diluted earnings per common share, net income | $ | 16,236 | $ | 14,203 | $ | 30,049 | $ | 27,437 | ||||||||
Denominator for basic earnings per common share, weighted average common shares outstanding | 30,068 | 27,534 | 29,947 | 27,527 | ||||||||||||
Weighted average common stock equivalents | 211 | 140 | 212 | 131 | ||||||||||||
Denominator for diluted earnings per common share | 30,279 | 27,674 | 30,159 | 27,658 | ||||||||||||
Basic earnings per common share | $ | 0.54 | $ | 0.52 | $ | 1 | $ | 1 | ||||||||
Diluted earnings per common share | 0.54 | 0.51 | 1 | 0.99 | ||||||||||||
The average number of exercisable employee stock option awards outstanding that were “out-of-the-money,” whereby the option exercise price per share exceeded the market price per share and, therefore, were not included in the computation of diluted earnings per common share because they would have been anti-dilutive totaled 249,150 and 367,844 for the three months ended June 30, 2014 and 2013, respectively, and 252,529 and 412,767 for the six months ended June 30, 2014 and 2013, respectively. |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||
Share-Based Compensation | |||||||||||||||||||
The Corporation maintains a share-based compensation plan under which it periodically grants share-based awards for a fixed number of shares to certain officers of the Corporation. The fair value of share-based awards is recognized as compensation expense over the requisite service or performance period. During the three-month periods ended June 30, 2014 and 2013, share-based compensation expense related to stock options and restricted stock units totaled $0.6 million and $0.7 million, respectively. During the six-month periods ended June 30, 2014 and 2013, share-based compensation expense related to stock options and restricted stock units totaled $1.2 million and $1.3 million, respectively. | |||||||||||||||||||
During the six-month period ended June 30, 2014, the Corporation granted options to purchase 190,011 shares of common stock and 68,253 restricted stock units to certain officers. At June 30, 2014, there were 420,618 shares of common stock available for future grants under the share-based compensation plan. | |||||||||||||||||||
Stock Options | |||||||||||||||||||
The Corporation issues stock options to certain officers. Stock options are issued at the current market price of the Corporation's common stock on the date of grant and expire ten years from the date of grant. Beginning in 2013, stock options granted vest ratably over a five-year period. Stock options granted prior to 2013 generally vest ratably over a three-year period. | |||||||||||||||||||
A summary of activity for the Corporation’s stock options as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||||
Non-Vested | Stock Options Outstanding | ||||||||||||||||||
Stock Options Outstanding | |||||||||||||||||||
Number of | Weighted- | Weighted- | Number of | Weighted- | |||||||||||||||
Options | Average | Average | Options | Average | |||||||||||||||
Exercise | Grant Date | Exercise | |||||||||||||||||
Price | Fair Value Per Share | Price | |||||||||||||||||
Per Share | Per Share | ||||||||||||||||||
Outstanding at January 1, 2014 | 414,080 | $ | 24.29 | $ | 7.19 | 1,073,990 | $ | 26.84 | |||||||||||
Granted | 190,011 | 29.45 | 9.64 | 190,011 | 29.45 | ||||||||||||||
Exercised | — | — | — | (64,071 | ) | 24.97 | |||||||||||||
Vested | (148,016 | ) | 23.43 | 6.98 | — | — | |||||||||||||
Forfeited/expired | (6,900 | ) | 24.57 | 7.26 | (8,287 | ) | 26.56 | ||||||||||||
Outstanding at June 30, 2014 | 449,175 | $ | 26.75 | $ | 8.3 | 1,191,643 | $ | 27.36 | |||||||||||
Exercisable/vested at June 30, 2014 | 742,468 | $ | 27.73 | ||||||||||||||||
The weighted-average remaining contractual terms were 5.9 years for all outstanding stock options and 4.1 years for exercisable stock options at June 30, 2014. The intrinsic value of all outstanding in-the-money stock options and exercisable in-the-money stock options was $3.1 million and $2.3 million, respectively, at June 30, 2014. The aggregate intrinsic values of outstanding and exercisable options at June 30, 2014 were calculated based on the closing market price of the Corporation’s common stock on June 30, 2014 of $28.08 per share less the exercise price. Options with intrinsic values less than zero, or “out-of-the-money” options, were not included in the aggregate intrinsic value reported. | |||||||||||||||||||
At June 30, 2014, unrecognized compensation expense related to stock options totaled $3.3 million and is expected to be recognized over a remaining weighted average period of 3.9 years. | |||||||||||||||||||
The fair value of the stock options granted during the six months ended June 30, 2014 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions. | |||||||||||||||||||
Expected dividend yield | 3 | % | |||||||||||||||||
Risk-free interest rate | 2.16 | % | |||||||||||||||||
Expected stock price volatility | 42.2 | % | |||||||||||||||||
Expected life of options – in years | 7 | ||||||||||||||||||
Weighted average fair value of options granted | $ | 9.64 | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||||
In addition to stock options, the Corporation grants restricted stock performance units and restricted stock service-based units (collectively referred to as restricted stock units) to certain officers. The restricted stock performance units vest based on the Corporation achieving certain performance target levels. The restricted stock performance units are eligible to vest from 0.25x to 1.5x the number of units originally granted depending on which, if any, of the performance target levels are met. However, if the minimum performance target level is not achieved, no shares will become vested or be issued for that respective year’s restricted stock performance units. The restricted stock service-based units vest upon satisfaction of a service condition. Upon achievement of the performance target level and/or satisfaction of a service condition, if applicable, the restricted stock units are converted into shares of the Corporation’s common stock on a one-to-one basis. Compensation expense related to restricted stock units is recognized over the expected requisite performance or service period, as applicable. | |||||||||||||||||||
A summary of the activity for restricted stock units as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||
Units | Average | ||||||||||||||||||
Grant Date | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Per Unit | |||||||||||||||||||
Outstanding at January 1, 2014 | 188,532 | $ | 21.49 | ||||||||||||||||
Granted | 68,253 | 27.49 | |||||||||||||||||
Converted into shares of common stock | (51,224 | ) | 19.12 | ||||||||||||||||
Forfeited/expired | (1,278 | ) | 23.76 | ||||||||||||||||
Outstanding at June 30, 2014 | 204,283 | $ | 24.07 | ||||||||||||||||
At June 30, 2014, unrecognized compensation expense related to restricted stock unit awards totaled $3.1 million and is expected to be recognized over a remaining weighted average period of 2.7 years. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pension and Other Postretirement Benefit Plans | ' | ||||||||||||||||
Pension and Other Postretirement Benefit Plans | |||||||||||||||||
The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Service cost | $ | 251 | $ | 325 | $ | 501 | $ | 650 | |||||||||
Interest cost | 1,312 | 1,167 | 2,624 | 2,334 | |||||||||||||
Expected return on plan assets | (2,079 | ) | (1,948 | ) | (4,157 | ) | (3,896 | ) | |||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||
Amortization of unrecognized net loss | 569 | 946 | 1,138 | 1,892 | |||||||||||||
Net periodic benefit cost | $ | 52 | $ | 489 | $ | 105 | $ | 979 | |||||||||
Postretirement Benefit Plan | |||||||||||||||||
Service cost | $ | 4 | $ | 4 | $ | 9 | $ | 9 | |||||||||
Interest cost | 36 | 36 | 71 | 72 | |||||||||||||
Amortization of prior service cost | 33 | 153 | 65 | 206 | |||||||||||||
Amortization of unrecognized net gain | (26 | ) | (18 | ) | (52 | ) | (37 | ) | |||||||||
Net periodic benefit cost | $ | 47 | $ | 175 | $ | 93 | $ | 250 | |||||||||
The Corporation’s pension plan does not have a contribution requirement in 2014. The Corporation made a $15.0 million contribution to the pension plan during the six months ended June 30, 2013. The discount rate used to compute the Corporation's pension plan expense for 2014 is 5.00%. | |||||||||||||||||
401(k) Savings Plan expense for the Corporation’s match of participants’ base compensation contributions and a 4% of eligible pay contribution to certain employees who are not grandfathered under the pension plan was $1.0 million and $0.9 million for the three months ended June 30, 2014 and 2013, respectively, and $1.7 million and $1.8 million for the six months ended June 30, 2014 and 2013, respectively. |
Financial_Guarantees
Financial Guarantees | 6 Months Ended |
Jun. 30, 2014 | |
Guarantees [Abstract] | ' |
Financial Guarantees | ' |
Financial Guarantees | |
In the normal course of business, the Corporation is a party to financial instruments containing credit risk that are not required to be reflected in the consolidated statements of financial position. For the Corporation, these financial instruments are financial and performance standby letters of credit. The Corporation has risk management policies to identify, monitor and limit exposure to credit risk. To mitigate credit risk for these financial guarantees, the Corporation generally determines the need for specific covenant, guarantee and collateral requirements on a case-by-case basis, depending on the nature of the financial instrument and the customer’s creditworthiness. At June 30, 2014, December 31, 2013 and June 30, 2013, the Corporation had $37 million, $47 million and $47 million, respectively, of outstanding financial and performance standby letters of credit that expire in five years or less. The majority of these standby letters of credit are collateralized. The Corporation determined that there were no potential losses from standby letters of credit at June 30, 2014, December 31, 2013 and June 30, 2013. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Nature of Operations | |
Chemical Financial Corporation (Corporation) operates in a single operating segment — commercial banking. The Corporation is a financial holding company, headquartered in Midland, Michigan, that operates through one commercial bank, Chemical Bank. Chemical Bank operates within the State of Michigan as a state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of four regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the bank’s geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation’s regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is uniform throughout the Corporation’s regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products. | |
The Corporation’s primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue. | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements of the Corporation and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
Use of Estimates | ' |
Use of Estimates | |
Management makes estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, expected cash flows from acquired loans, fair value amounts related to business combinations, pension expense, income taxes, goodwill impairment and those assets that require fair value measurement. Actual results could differ from these estimates. | |
Originated Loans | ' |
Originated Loans | |
Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on April 30, 2010 in the acquisition of O.A.K. Financial Corporation (OAK). Originated loans also include loans acquired as part of the Corporation's branch acquisition on December 7, 2012, as these loans were performing and were considered high-quality loans in accordance with the Corporation's credit underwriting standards at that date. Originated loans are stated at their principal amount outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Loan interest income is recognized on the accrual basis. Deferred loan fees and costs are amortized over the loan term based on the level-yield method. Net loan commitment fees are deferred and amortized into fee income on a straight-line basis over the commitment period. | |
The past due status of a loan is based on the loan’s contractual terms. A loan is placed in nonaccrual status (accrual of interest is discontinued) when principal or interest is past due 90 days or more (except for a loan that is secured by residential real estate, which is transferred to nonaccrual status at 120 days past due), unless the loan is both well-secured and in the process of collection, or earlier when, in the opinion of management, there is sufficient reason to doubt the collectibility of principal or interest. Interest previously accrued, but not collected, is reversed and charged against interest income at the time the loan is placed in nonaccrual status. Subsequent receipts of interest while a loan is in nonaccrual status are recorded as a reduction of principal. Loans are returned to accrual status when principal and interest payments are brought current, payments have been received consistently for a period of time (generally six months) and collectibility is no longer in doubt. | |
Loans Acquired in a Business Combination | ' |
Loans Acquired in a Business Combination | |
Loans acquired in a business combination (acquired loans) consist of loans acquired on April 30, 2010 in the acquisition of OAK. Acquired loans were recorded at fair value at the date of acquisition, without a carryover of the associated allowance for loan losses related to these loans, through a fair value discount that was, in part, attributable to deterioration in credit quality. The estimate of expected credit losses was determined based on due diligence performed by executive and senior officers of the Corporation, with assistance from third-party consultants. The fair value discount was recorded as a reduction of the acquired loans’ outstanding principal balances in the consolidated statement of financial position at the acquisition date. | |
The Corporation accounts for acquired loans, which are recorded at fair value at acquisition, in accordance with Accounting Standards Codification (ASC) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). ASC 310-30 allows investors to aggregate loans acquired into loan pools that have common risk characteristics and thereby use a composite interest rate and expectation of cash flows expected to be collected for the loan pools. Under the provisions of ASC 310-30, the Corporation aggregated acquired loans into 14 pools based upon common risk characteristics, including types of loans, commercial type loans with similar risk grades and whether loans were performing or nonperforming. A pool is considered a single unit of accounting for purposes of applying the guidance prescribed in ASC 310-30. A loan will be removed from a pool of acquired loans only if the loan is sold, foreclosed, paid off or written off, and will be removed from the pool at the carrying value. If an individual loan is removed from a pool of loans, the difference between its relative carrying amount and the cash, fair value of the collateral, or other assets received would not affect the effective yield used to recognize the accretable difference on the remaining pool. The Corporation estimated the cash flows expected to be collected over the life of the pools of loans at acquisition, and estimates expected cash flows quarterly thereafter, based on a set of assumptions including expectations as to default rates, prepayment rates and loss severities. The Corporation must make numerous assumptions, interpretations and judgments using internal and third-party credit quality information to determine whether it is probable that the Corporation will be able to collect all contractually required payments. This is a point in time assessment and inherently subjective due to the nature of the available information and judgment involved. | |
The calculation of the fair value of the acquired loan pools entails estimating the amount and timing of cash flows attributable to both principal and interest expected to be collected on such loan pools and then discounting those cash flows at market interest rates. The excess of a loan pool's expected cash flows at the acquisition date over its estimated fair value is referred to as the "accretable yield," which is recognized into interest income over the estimated remaining life of the loan pool on a level-yield basis. The difference between a loan pool's contractually required principal and interest payments at the acquisition date and the cash flows expected to be collected at the acquisition date is referred to as the "nonaccretable difference," which includes an estimate of future credit losses expected to be incurred over the estimated life of the loan pool and interest payments that are not expected to be collected. Decreases to the expected cash flows in each loan pool in subsequent periods will require the Corporation to record a provision for loan losses. Improvements in expected cash flows in each loan pool in subsequent periods will result in reversing a portion of the nonaccretable difference, which is then classified as part of the accretable yield and subsequently recognized into interest income over the estimated remaining life of the loan pool. | |
Loans Modified Under Troubled Debt Restructurings | ' |
Loans Modified Under Troubled Debt Restructurings | |
Loans modified under troubled debt restructurings (TDRs) involve granting a concession to a borrower who is experiencing financial difficulty. Concessions generally include modifications to original loan terms, including changes to a loan’s payment schedule or interest rate, which generally would not otherwise be considered. The Corporation’s TDRs include performing and nonperforming TDRs, which consist of originated loans that continue to accrue interest at the loan's original interest rate as the Corporation expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include originated loans that are in a nonaccrual status and are no longer accruing interest, as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans. At the time of modification (except for loans on nonaccrual status), a TDR is reported as a nonperforming TDR until a six-month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the Corporation moves the loan to a performing status (performing TDR). If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the Corporation’s analysis of the allowance for loan losses. A TDR that has been refinanced by a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a refinancing is no longer reported as a TDR. | |
Loans in the Corporation’s commercial loan portfolio (comprised of commercial, commercial real estate, real estate construction and land development loans) that meet the definition of a TDR generally consist of loans where the Corporation has allowed borrowers to defer scheduled principal payments and make interest-only payments for a specified period of time at the stated interest rate of the original loan agreement or reduced payments due to a moderate extension of the loan’s contractual term. If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. If the Corporation does not expect to incur a loss on the loan based on its assessment of the borrowers’ expected cash flows, as the pre- and post-modification effective yields are approximately the same, the loan is classified as a nonperforming TDR until a six-month payment history is sustained, at which time the loan is classified as a performing TDR. Since no loss is expected to be incurred on these loans, no additional provision for loan losses has been recognized related to these loans, and these loans accrue interest at their contractual interest rate. These loans are individually evaluated for impairment and transferred to nonaccrual status if they become 90 days past due as to principal or interest payments or if it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the modified terms of the loans. | |
Loans in the Corporation’s consumer loan portfolio (comprised of residential mortgage, consumer installment and home equity loans) that meet the definition of a performing or nonperforming TDR generally consist of residential mortgage loans that include a concession that reduces a borrower’s monthly payments by decreasing the interest rate charged on the loan for a specified period of time (generally 24 months) under a formal modification agreement. The Corporation recognizes an additional provision for loan losses related to impairment on these loans on an individual basis based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. These loans continue to accrue interest at the loan's effective interest rate, which consists of contractual interest under the terms of the modification agreement in addition to an adjustment for the accretion of computed impairment. These loans are moved to nonaccrual status if they become 90 days past due as to principal or interest payments, or sooner if conditions warrant. | |
Impaired Loans | ' |
Impaired Loans | |
A loan is defined to be impaired when it is probable that payment of principal and interest will not be paid in accordance with the original contractual terms of the loan agreement. Impaired loans include nonaccrual loans (including nonaccrual TDRs), performing and nonperforming TDRs and acquired loans that were not performing in accordance with original contractual terms. Impaired loans are accounted for at the lower of the present value of expected cash flows discounted at the loan's original effective interest rate or the estimated fair value of the collateral, if the loan is collateral dependent. When the present value of expected cash flows or the fair value of collateral of an impaired loan in the originated loan portfolio is less than the amount of unpaid principal outstanding on the loan, the principal balance of the loan is reduced to its carrying value through either an allocation of the allowance for loan losses or a partial charge-off of the loan balance. | |
Nonperforming Loans | ' |
Nonperforming Loans | |
Nonperforming loans are comprised of loans for which the accrual of interest has been discontinued (nonaccrual loans, including nonaccrual TDRs), accruing originated loans contractually past due 90 days or more as to interest or principal payments and nonperforming TDRs. | |
Acquired loans that were classified as nonperforming loans prior to being acquired and acquired loans that are not performing in accordance with contractual terms subsequent to acquisition are not classified as nonperforming loans subsequent to acquisition because the loans are recorded in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses | |
The allowance for loan losses (allowance) is presented as a reserve against loans. The allowance represents management’s assessment of probable loan losses inherent in the Corporation’s loan portfolio. | |
Management’s evaluation of the adequacy of the allowance is based on a continuing review of the loan portfolio, actual loan loss experience, the underlying value of the collateral, risk characteristics of the loan portfolio, the level and composition of nonperforming loans, the financial condition of the borrowers, the balance of the loan portfolio, loan growth, economic conditions, employment levels in the Corporation’s local markets, and special factors affecting specific business sectors. The Corporation maintains formal policies and procedures to monitor and control credit risk. Management evaluates the allowance on a quarterly basis in an effort to ensure the level is appropriate to absorb probable losses inherent in the loan portfolio. | |
The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be incurred in the remainder of the originated loan portfolio, but that have not been specifically identified. The Corporation utilizes its own loss experience to estimate inherent losses on loans. Internal risk ratings are assigned to each loan in the commercial loan portfolio (commercial, commercial real estate, real estate construction and land development loans) at the time of origination and are subject to subsequent periodic reviews by senior management. The Corporation performs a detailed credit quality review quarterly on all loans greater than $0.25 million that have deteriorated below certain levels of credit risk, and may allocate a specific portion of the allowance to such loans based upon this review. A portion of the allowance is allocated to the remaining loans by applying projected loss ratios, based on numerous factors. Projected loss ratios incorporate factors such as charge-off experience, trends with respect to adversely risk-rated loans in the commercial loan portfolio, trends with respect to past due and nonaccrual loans, changes in economic conditions and trends, changes in the value of underlying collateral and other credit risk factors. This evaluation involves a high degree of uncertainty. | |
In determining the allowance and the related provision for loan losses, the Corporation considers four principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired loans in the commercial loan portfolio, (ii) reserves established for adversely-rated loans in the commercial loan portfolio and nonaccrual residential mortgage, consumer installment and home equity loans based on loan loss experience of other adversely-rated loans, (iii) reserves, by loan classes, on all other loans based principally on a five-year historical loan loss experience, with higher weighting placed on the most recent years, and loan loss trends and (iv) an unallocated allowance based on the imprecision in the overall allowance methodology for loans collectively evaluated for impairment. | |
Although the Corporation allocates portions of the allowance to specific loans and loan types, the entire allowance attributable to originated loans is available for any loan losses that occur in the originated portfolio. Loans that are deemed not collectible are charged off and reduce the allowance. The provision for loan losses and recoveries on loans previously charged off increase the allowance. Collection efforts may continue and recoveries may occur after a loan is charged off. | |
Acquired loans are aggregated into pools based upon common risk characteristics. An allowance may be recorded related to an acquired loan pool if it experiences a decrease in expected cash flows, as compared to those projected at the acquisition date. On a quarterly basis, the expected future cash flow of each pool is estimated based on various factors, including changes in property values of collateral dependent loans, default rates, loss severities and prepayment speeds. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to acquired loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in a reduction in the allowance allocated to acquired loans for the particular pool, if applicable, and then an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in subsequent periods. | |
Various regulatory agencies, as an integral part of their examination process, periodically review the allowance. Such agencies may require additions to the allowance, based on their judgment, reflecting information available to them at the time of their examinations. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
Fair value for assets and liabilities measured at fair value on a recurring or nonrecurring basis refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. | |
The Corporation may choose to measure eligible items at fair value at specified election dates. Unrealized gains and losses on items for which the fair value measurement option has been elected are reported in earnings at each subsequent reporting date. The fair value option (i) may be applied instrument by instrument, with certain exceptions, allowing the Corporation to record identical financial assets and liabilities at fair value or by another measurement basis permitted under GAAP, (ii) is irrevocable (unless a new election date occurs) and (iii) is applied only to entire instruments and not to portions of instruments. At June 30, 2014, December 31, 2013 and June 30, 2013, the Corporation had elected the fair value option on all of its residential mortgage loans held-for-sale. The Corporation has not elected the fair value option for any other financial assets or liabilities. | |
Share-Based Compensation | ' |
Share-Based Compensation | |
The Corporation grants stock options, stock awards, restricted stock performance units and restricted stock service-based units to certain executive and senior management employees. The Corporation accounts for share-based compensation expense using the modified-prospective transition method. Under that method, compensation expense is recognized for stock options based on the estimated grant date fair value as computed using the Black-Scholes option pricing model and the probability of issuance. The Corporation accounts for stock awards based on the closing stock price of the Corporation's common stock on the date of the award. The fair values of both stock options and stock awards are recognized as compensation expense on a straight-line basis over the requisite service period. The Corporation accounts for restricted stock performance units based on the closing stock price of the Corporation's common stock on the date of grant, discounted by the present value of estimated future dividends to be declared over the requisite performance or service period. The fair value of restricted stock performance units is recognized as compensation expense over the expected requisite performance period, or requisite service period for awards with multiple performance and service conditions. The Corporation accounts for restricted stock service-based units based on the closing stock price of the Corporation's common stock on the date of grant, as these awards accrue dividend equivalents equal to the amount of any cash dividends that would have been payable to a shareholder owning the number of shares of the Corporation's common stock represented by the restricted stock service-based units. The fair value of the restricted stock service-based units is recognized as compensation expense over the requisite service period. | |
Cash flows realized from the tax benefits of exercised stock option awards that result from actual tax deductions that are in excess of the recorded tax benefits related to the compensation expense recognized for those options (excess tax benefits) are classified as financing activities on the consolidated statements of cash flows. | |
Income and Other Taxes | ' |
Income and Other Taxes | |
The Corporation is subject to the income and other tax laws of the United States, the State of Michigan and other states where nexus has been created. These laws are complex and are subject to different interpretations by the taxpayer and the various taxing authorities. In determining the provision for income and other taxes, management must make judgments and estimates about the application of these inherently complex laws, related regulations and case law. In the process of preparing the Corporation’s tax returns, management attempts to make reasonable interpretations of enacted tax laws. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law. | |
On a quarterly basis, management assesses the reasonableness of its estimated annual effective federal tax rate based upon its current best estimate of taxable income and the applicable taxes expected for the full year. Deferred tax assets and liabilities are reassessed on a quarterly basis, including the need for a valuation allowance for deferred tax assets. | |
Uncertain income tax positions are evaluated to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the tax position. If a tax position is more-likely-than-not to be sustained, a tax benefit is recognized for the amount that is greater than 50% likely to be realized. Reserves for contingent income tax liabilities attributable to unrecognized tax benefits associated with uncertain tax positions are reviewed quarterly for adequacy based upon developments in tax law and the status of audits or examinations. The Corporation had no contingent income tax liabilities recorded at June 30, 2014, December 31, 2013 or June 30, 2013. The tax periods open to examination by the Internal Revenue Service include the calendar years ended December 31, 2013, 2012, 2011 and 2010. | |
Shareholders' Equity | ' |
Shareholders’ Equity | |
Common Stock Repurchase Programs | |
From time to time, the board of directors of the Corporation approves common stock repurchase programs allowing management to repurchase shares of the Corporation’s common stock in the open market. The repurchased shares are available for later reissuance in connection with potential future stock dividends, the Corporation’s dividend reinvestment plan, employee benefit plans and other general corporate purposes. Under these programs, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, including the projected parent company cash flow requirements and the Corporation’s market price per share. | |
In January 2008, the board of directors of the Corporation authorized the repurchase of up to 500,000 shares of the Corporation’s common stock under a stock repurchase program. In November 2011, the board of directors of the Corporation reaffirmed the stock buy-back authorization with the qualification that the shares may only be repurchased if the share price is below the tangible book value per share of the Corporation’s common stock at the time of the repurchase. Since the January 2008 authorization, no shares have been repurchased. At June 30, 2014, there were 500,000 remaining shares available for repurchase under the Corporation’s stock repurchase programs. | |
Underwritten Public Offering of Common Stock | |
On June 24, 2014, the Corporation issued and sold 2,500,000 shares of common stock at a public offering price of $28.00 per share. An additional 375,000 shares were issued and sold on June 30, 2014 upon the exercise in full of the underwriters' over-allotment option. The net proceeds from the issuance and sale of the common stock, after deducting the underwriting discount and issuance-related expenses, totaled $76.2 million. | |
On September 18, 2013, the Corporation issued and sold 2,213,750 shares of common stock, including 288,750 shares of common stock that were issued and sold upon the exercise in full of the underwriters' over-allotment option, at a public offering price of $26.00 per share. The net proceeds from the issuance and sale of the common stock, after deducting the underwriting discount and issuance-related expenses, totaled $53.9 million. | |
Shelf Registration | |
On June 12, 2014, the Corporation filed an automatic shelf registration statement of securities of well-known seasoned issuers with the Securities and Exchange Commission (SEC) for an indeterminate amount of shares, which became immediately effective. The shelf registration statement provides the Corporation with the ability to raise capital, subject to SEC rules and limitations, if the board of directors of the Corporation decides to do so. As previously discussed, the Corporation completed an $80.5 million public stock offering during the second quarter of 2014, which does not take into account the underwriting discount and issuance related expenses. | |
The Corporation had previously filed a universal shelf registration statement with the SEC on May 23, 2013, which became effective on June 7, 2013, to register up to $100 million in securities. The Corporation's September 2013 common stock offering was completed under this universal shelf registration statement. Prior to filing its automatic shelf registration statement on June 12, 2014, the Corporation filed a post-effective amendment to terminate the effectiveness of the universal shelf registration statement and remove from registration all of the remaining securities covered by the universal shelf registration statement. | |
Preferred Stock | |
On April 20, 2009, the shareholders of the Corporation authorized the board of directors of the Corporation to issue up to 200,000 shares of preferred stock in connection with either an acquisition by the Corporation of an entity that has shares of preferred stock issued and outstanding pursuant to any program established by the United States government or participation by the Corporation in any program established by the United States government. At June 30, 2014, no shares of preferred stock were issued and outstanding. | |
Legal Matters | ' |
Legal Matters | |
The Corporation and Chemical Bank are subject to certain legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition or results of operations of the Corporation. | |
Adopted Accounting Pronouncements | ' |
Adopted Accounting Pronouncements | |
Joint and Several Liability Arrangements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (ASU 2013-04). ASU 2013-04 provides guidance in relation to the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. ASU 2013-04 is effective for interim and annual periods beginning after December 15, 2013 and should be applied retrospectively for all periods presented for those obligations resulting from joint and several liability arrangements that exist at the beginning of the fiscal year of adoption. The adoption of ASU 2013-04 as of January 1, 2014 did not have a material impact on the Corporation's consolidated financial condition or results of operations. | |
Accounting for Investments in Qualified Affordable Housing Projects | |
In January 2014, the FASB issued ASU 2014-01, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects, a consensus of the FASB Emerging Issues Task Force (ASU 2014-01). ASU 2014-01 allows limited liability investors in qualified affordable housing projects to amortize the cost of their investment in proportion to tax credits and other tax benefits received (referred to as the "proportional amortization method"), and present the amortization as a component of income tax expense. The proportional amortization method replaces the equity method, which requires the investment performance to be included in pre-tax income. The following conditions must be met in order for an investor to use the proportional amortization method: (i) it is probable that the tax credits allocable to the investor will be available, (ii) the investor does not have the ability to exercise significant influence over the operating and financial policies of the limited liability entity, (iii) substantially all of the projected benefits are from tax credits and other tax benefits, (iv) the investor's projected yield based solely on the cash flows from the tax credits and other tax benefits is positive, and (v) the investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the investor's liability is limited to its capital investment. The decision to apply the proportional amortization method is an accounting policy method that, if elected, must be applied consistently to all investments that meet the above conditions. An investor that does not qualify for the proportional amortization method or elects not to apply it will account for its investment under the cost or equity method in accordance with current guidance. ASU 2014-01 also introduces disclosure requirements for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. An investor must disclose (i) the nature of investments in qualified affordable housing projects and (ii) the effect of the measurement of those investments and the related tax credits on its financial statements. ASU 2014-01 is effective for public companies for interim and annual periods beginning after December 15, 2014, with early adoption permitted. Once adopted, the guidance must be applied retrospectively to all periods presented. | |
The Corporation elected to early-adopt ASU 2014-01 as of January 1, 2014. The Corporation previously accounted for its investments in qualified affordable housing projects under the equity method; however, the Corporation determined that its investments in its qualified affordable housing projects meet the conditions set forth in ASU 2014-01 to account for these investments under the proportional amortization method. The Corporation invests in qualified affordable housing projects solely for the purpose of obtaining tax credits and other tax benefits. Accordingly, the Corporation believes that amortizing its investments in qualified affordable housing projects as a component of income tax expense rather than as a component of operating expenses better reflects the nature and intent of these investments. As a result of adopting ASU 2014-01, the Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $0.1 million and $0.2 million during the three and six months ended June 30, 2014. While the adoption of ASU 2014-01 requires retrospective application to all periods presented, the Corporation did not restate income tax expense for the three and six months ended June 30, 2013 as the amount of additional income tax expense attributable to the amortization of investments in qualified affordable housing projects was not considered material. The Corporation's remaining investment in qualified affordable housing projects totaled $3.1 million at June 30, 2014, $3.2 million at December 31, 2013 and $3.4 million at June 30, 2013. | |
Pending Accounting Pronouncements | ' |
Pending Accounting Pronouncements | |
In-Substance Foreclosures | |
In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-04). ASU 2014-04 clarifies that an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 also requires disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure. ASU 2014-04 is effective for public companies for interim and annual periods beginning after December 15, 2014, with early adoption permitted. Once adopted, an entity can elect either (i) a modified retrospective transition method or (ii) a prospective transition method. The modified retrospective transition method is applied by means of a cumulative-effect adjustment to residential mortgage loans and foreclosed residential real estate properties existing as of the beginning of the period for which the amendments of ASU 2014-04 are effective, with real estate reclassified to loans measured at the carrying value of the real estate at the date of adoption and loans reclassified to real estate measured at the lower of net carrying value of the loan or the fair value of the real estate less costs to sell at the date of adoption. The prospective transition method is applied by means of applying the amendments of ASU 2014-04 to all instances of receiving physical possession of residential real estate properties that occur after the date of adoption. The adoption of ASU 2014-04 is not expected to have a material impact on the Corporation's consolidated financial condition or results of operations. | |
Share-Based Compensation | |
In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force (ASU 2014-12). ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on the Corporation's consolidated financial condition or results of operations. |
Acquisitions_Tables
Acquisitions (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Activity for accretable yield includes contractually due interest of acquired loans | ' | ||||||||
Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows: | |||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance at beginning of period | $ | 32,610 | $ | 49,390 | |||||
Additions (reductions)* | 2,333 | (1,874 | ) | ||||||
Accretion recognized in interest income | (7,594 | ) | (9,321 | ) | |||||
Reclassification from nonaccretable difference | 10,000 | 125 | |||||||
Balance at end of period | $ | 37,349 | $ | 38,320 | |||||
* | Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans. | ||||||||
As part of its ongoing assessment of the acquired loan portfolio, management has determined that the overall credit quality of the acquired loan portfolio has improved, which has resulted in an improvement in expected cash flows of loan pools in the acquired commercial loan portfolio. Accordingly, management reclassified $10.0 million during the first quarter of 2014 from the nonaccretable difference to the accretable yield for these acquired commercial loan pools, which will increase amounts recognized into interest income over the estimated remaining lives of these loan pools. |
Investment_Securities_Tables
Investment Securities (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Available-for-sale Securities | ' | ||||||||||||||||||||||||
The following is a summary of the amortized cost and fair value of investment securities available-for-sale and investment securities held-to-maturity at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||
Investment Securities Available-for-Sale | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 88,503 | $ | 346 | $ | 141 | $ | 88,708 | |||||||||||||||||
State and political subdivisions | 40,165 | 1,443 | — | 41,608 | |||||||||||||||||||||
Residential mortgage-backed securities | 265,673 | 1,117 | 1,422 | 265,368 | |||||||||||||||||||||
Collateralized mortgage obligations | 154,035 | 376 | 1,128 | 153,283 | |||||||||||||||||||||
Corporate bonds | 64,979 | 456 | 83 | 65,352 | |||||||||||||||||||||
Preferred stock | 1,389 | 267 | — | 1,656 | |||||||||||||||||||||
Total | $ | 614,744 | $ | 4,005 | $ | 2,774 | $ | 615,975 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 93,895 | $ | 250 | $ | 382 | $ | 93,763 | |||||||||||||||||
State and political subdivisions | 42,450 | 1,355 | 7 | 43,798 | |||||||||||||||||||||
Residential mortgage-backed securities | 303,495 | 968 | 5,097 | 299,366 | |||||||||||||||||||||
Collateralized mortgage obligations | 182,128 | 452 | 1,639 | 180,941 | |||||||||||||||||||||
Corporate bonds | 65,028 | 499 | 252 | 65,275 | |||||||||||||||||||||
Preferred stock | 1,389 | 63 | 25 | 1,427 | |||||||||||||||||||||
Total | $ | 688,385 | $ | 3,587 | $ | 7,402 | $ | 684,570 | |||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 92,239 | $ | 249 | $ | 400 | $ | 92,088 | |||||||||||||||||
State and political subdivisions | 44,288 | 1,500 | 8 | 45,780 | |||||||||||||||||||||
Residential mortgage-backed securities | 311,425 | 1,166 | 4,219 | 308,372 | |||||||||||||||||||||
Collateralized mortgage obligations | 221,025 | 463 | 973 | 220,515 | |||||||||||||||||||||
Corporate bonds | 65,077 | 692 | 254 | 65,515 | |||||||||||||||||||||
Preferred stock | 1,389 | 393 | — | 1,782 | |||||||||||||||||||||
Total | $ | 735,443 | $ | 4,463 | $ | 5,854 | $ | 734,052 | |||||||||||||||||
Held-to-maturity Securities | ' | ||||||||||||||||||||||||
Investment Securities Held-to-Maturity | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
State and political subdivisions | $ | 297,630 | $ | 5,885 | $ | 6,329 | $ | 297,186 | |||||||||||||||||
Trust preferred securities | 10,500 | — | 3,725 | 6,775 | |||||||||||||||||||||
Total | $ | 308,130 | $ | 5,885 | $ | 10,054 | $ | 303,961 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
State and political subdivisions | $ | 263,405 | $ | 5,462 | $ | 6,846 | $ | 262,021 | |||||||||||||||||
Trust preferred securities | 10,500 | — | 4,250 | 6,250 | |||||||||||||||||||||
Total | $ | 273,905 | $ | 5,462 | $ | 11,096 | $ | 268,271 | |||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||
State and political subdivisions | $ | 264,215 | $ | 6,113 | $ | 5,181 | $ | 265,147 | |||||||||||||||||
Trust preferred securities | 10,500 | — | 4,250 | 6,250 | |||||||||||||||||||||
Total | $ | 274,715 | $ | 6,113 | $ | 9,431 | $ | 271,397 | |||||||||||||||||
Amortized cost and fair value of debt securities by contractual maturity | ' | ||||||||||||||||||||||||
The following is a summary of the amortized cost and fair value of investment securities at June 30, 2014, by maturity, for both available-for-sale and held-to-maturity investment securities. The maturities of residential mortgage-backed securities and collateralized mortgage obligations are based on scheduled principal payments. The maturities of all other debt securities are based on final contractual maturity. | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Amortized | Fair Value | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Investment Securities Available-for-Sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 159,350 | $ | 159,511 | |||||||||||||||||||||
Due after one year through five years | 371,009 | 371,673 | |||||||||||||||||||||||
Due after five years through ten years | 78,876 | 79,101 | |||||||||||||||||||||||
Due after ten years | 4,120 | 4,034 | |||||||||||||||||||||||
Preferred stock | 1,389 | 1,656 | |||||||||||||||||||||||
Total | $ | 614,744 | $ | 615,975 | |||||||||||||||||||||
Investment Securities Held-to-Maturity: | |||||||||||||||||||||||||
Due in one year or less | $ | 34,176 | $ | 34,260 | |||||||||||||||||||||
Due after one year through five years | 132,011 | 133,164 | |||||||||||||||||||||||
Due after five years through ten years | 88,674 | 89,653 | |||||||||||||||||||||||
Due after ten years | 53,269 | 46,884 | |||||||||||||||||||||||
Total | $ | 308,130 | $ | 303,961 | |||||||||||||||||||||
Summary of continuous unrealized loss position of securities | ' | ||||||||||||||||||||||||
The following schedule summarizes information for both available-for-sale and held-to-maturity investment securities with gross unrealized losses at June 30, 2014, December 31, 2013 and June 30, 2013, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 2,377 | $ | 2 | $ | 44,786 | $ | 139 | $ | 47,163 | $ | 141 | |||||||||||||
State and political subdivisions | 92,279 | 4,047 | 71,421 | 2,282 | 163,700 | 6,329 | |||||||||||||||||||
Residential mortgage-backed securities | 10,144 | 60 | 197,042 | 1,362 | 207,186 | 1,422 | |||||||||||||||||||
Collateralized mortgage obligations | 47,142 | 68 | 35,722 | 1,060 | 82,864 | 1,128 | |||||||||||||||||||
Corporate bonds | 4,996 | 5 | 14,922 | 78 | 19,918 | 83 | |||||||||||||||||||
Trust preferred securities | — | — | 6,775 | 3,725 | 6,775 | 3,725 | |||||||||||||||||||
Total | $ | 156,938 | $ | 4,182 | $ | 370,668 | $ | 8,646 | $ | 527,606 | $ | 12,828 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 47,352 | $ | 205 | $ | 14,031 | $ | 177 | $ | 61,383 | $ | 382 | |||||||||||||
State and political subdivisions | 126,345 | 6,475 | 19,074 | 378 | 145,419 | 6,853 | |||||||||||||||||||
Residential mortgage-backed securities | 274,076 | 5,097 | — | — | 274,076 | 5,097 | |||||||||||||||||||
Collateralized mortgage obligations | 84,995 | 1,127 | 14,684 | 512 | 99,679 | 1,639 | |||||||||||||||||||
Corporate bonds | 14,931 | 78 | 19,826 | 174 | 34,757 | 252 | |||||||||||||||||||
Trust preferred securities | — | — | 6,250 | 4,250 | 6,250 | 4,250 | |||||||||||||||||||
Preferred stock | 1,024 | 25 | — | — | 1,024 | 25 | |||||||||||||||||||
Total | $ | 548,723 | $ | 13,007 | $ | 73,865 | $ | 5,491 | $ | 622,588 | $ | 18,498 | |||||||||||||
30-Jun-13 | |||||||||||||||||||||||||
Government sponsored agencies | $ | 58,646 | $ | 400 | $ | — | $ | — | $ | 58,646 | $ | 400 | |||||||||||||
State and political subdivisions | 128,062 | 4,707 | 19,378 | 482 | 147,440 | 5,189 | |||||||||||||||||||
Residential mortgage-backed securities | 267,211 | 4,217 | 257 | 2 | 267,468 | 4,219 | |||||||||||||||||||
Collateralized mortgage obligations | 100,469 | 939 | 8,083 | 34 | 108,552 | 973 | |||||||||||||||||||
Corporate bonds | 4,881 | 130 | 19,876 | 124 | 24,757 | 254 | |||||||||||||||||||
Trust preferred securities | — | — | 6,250 | 4,250 | 6,250 | 4,250 | |||||||||||||||||||
Total | $ | 559,269 | $ | 10,393 | $ | 53,844 | $ | 4,892 | $ | 613,113 | $ | 15,285 | |||||||||||||
Loans_Tables
Loans (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of loans under portfolio | ' | ||||||||||||||||||||||||||||
A summary of loans follows: | |||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 1,212,383 | $ | 1,176,307 | $ | 1,091,894 | |||||||||||||||||||||||
Commercial real estate | 1,298,365 | 1,232,658 | 1,172,347 | ||||||||||||||||||||||||||
Real estate construction | 101,168 | 89,795 | 73,448 | ||||||||||||||||||||||||||
Land development | 10,956 | 20,066 | 27,181 | ||||||||||||||||||||||||||
Subtotal | 2,622,872 | 2,518,826 | 2,364,870 | ||||||||||||||||||||||||||
Consumer loan portfolio: | |||||||||||||||||||||||||||||
Residential mortgage | 970,397 | 960,423 | 898,816 | ||||||||||||||||||||||||||
Consumer installment | 744,781 | 644,769 | 577,241 | ||||||||||||||||||||||||||
Home equity | 560,754 | 523,603 | 494,944 | ||||||||||||||||||||||||||
Subtotal | 2,275,932 | 2,128,795 | 1,971,001 | ||||||||||||||||||||||||||
Total loans | $ | 4,898,804 | $ | 4,647,621 | $ | 4,335,871 | |||||||||||||||||||||||
Recorded investment of loans in the commercial loan portfolio by risk rating categories | ' | ||||||||||||||||||||||||||||
The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Real Estate | Land | Total | |||||||||||||||||||||||||
Construction | Development | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | $ | 1,067,000 | $ | 1,063,555 | $ | 85,754 | $ | 2,514 | $ | 2,218,823 | |||||||||||||||||||
Risk Grade 6 | 15,459 | 30,053 | 666 | 965 | 47,143 | ||||||||||||||||||||||||
Risk Grade 7 | 37,291 | 35,946 | 1,995 | 627 | 75,859 | ||||||||||||||||||||||||
Risk Grade 8 | 18,560 | 25,347 | 160 | 2,184 | 46,251 | ||||||||||||||||||||||||
Risk Grade 9 | 213 | 14 | — | — | 227 | ||||||||||||||||||||||||
Subtotal | 1,138,523 | 1,154,915 | 88,575 | 6,290 | 2,388,303 | ||||||||||||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | 59,993 | 132,898 | 12,593 | 2,546 | 208,030 | ||||||||||||||||||||||||
Risk Grade 6 | 6,769 | 3,822 | — | — | 10,591 | ||||||||||||||||||||||||
Risk Grade 7 | 3,197 | 6,730 | — | 143 | 10,070 | ||||||||||||||||||||||||
Risk Grade 8 | 3,901 | — | — | 1,977 | 5,878 | ||||||||||||||||||||||||
Risk Grade 9 | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 73,860 | 143,450 | 12,593 | 4,666 | 234,569 | ||||||||||||||||||||||||
Total | $ | 1,212,383 | $ | 1,298,365 | $ | 101,168 | $ | 10,956 | $ | 2,622,872 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | $ | 1,024,461 | $ | 991,964 | $ | 75,696 | $ | 6,874 | $ | 2,098,995 | |||||||||||||||||||
Risk Grade 6 | 20,082 | 34,248 | 654 | 969 | 55,953 | ||||||||||||||||||||||||
Risk Grade 7 | 29,776 | 30,377 | 738 | 3,128 | 64,019 | ||||||||||||||||||||||||
Risk Grade 8 | 17,414 | 28,580 | 371 | 2,309 | 48,674 | ||||||||||||||||||||||||
Risk Grade 9 | 960 | 18 | — | — | 978 | ||||||||||||||||||||||||
Subtotal | 1,092,693 | 1,085,187 | 77,459 | 13,280 | 2,268,619 | ||||||||||||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | 73,763 | 133,653 | 12,336 | 4,667 | 224,419 | ||||||||||||||||||||||||
Risk Grade 6 | 5,472 | 5,022 | — | — | 10,494 | ||||||||||||||||||||||||
Risk Grade 7 | 852 | 7,792 | — | — | 8,644 | ||||||||||||||||||||||||
Risk Grade 8 | 3,527 | 1,004 | — | 2,119 | 6,650 | ||||||||||||||||||||||||
Risk Grade 9 | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 83,614 | 147,471 | 12,336 | 6,786 | 250,207 | ||||||||||||||||||||||||
Total | $ | 1,176,307 | $ | 1,232,658 | $ | 89,795 | $ | 20,066 | $ | 2,518,826 | |||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | $ | 919,985 | $ | 897,960 | $ | 59,575 | $ | 9,315 | $ | 1,886,835 | |||||||||||||||||||
Risk Grade 6 | 26,848 | 43,650 | 58 | 434 | 70,990 | ||||||||||||||||||||||||
Risk Grade 7 | 29,025 | 33,464 | 1,058 | 5,751 | 69,298 | ||||||||||||||||||||||||
Risk Grade 8 | 9,693 | 28,048 | 183 | 3,434 | 41,358 | ||||||||||||||||||||||||
Risk Grade 9 | 1,359 | 450 | — | — | 1,809 | ||||||||||||||||||||||||
Subtotal | 986,910 | 1,003,572 | 60,874 | 18,934 | 2,070,290 | ||||||||||||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | 100,241 | 152,906 | 12,574 | 5,682 | 271,403 | ||||||||||||||||||||||||
Risk Grade 6 | 2,315 | 5,696 | — | — | 8,011 | ||||||||||||||||||||||||
Risk Grade 7 | 699 | 8,720 | — | — | 9,419 | ||||||||||||||||||||||||
Risk Grade 8 | 1,729 | 1,453 | — | 2,565 | 5,747 | ||||||||||||||||||||||||
Risk Grade 9 | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 104,984 | 168,775 | 12,574 | 8,247 | 294,580 | ||||||||||||||||||||||||
Total | $ | 1,091,894 | $ | 1,172,347 | $ | 73,448 | $ | 27,181 | $ | 2,364,870 | |||||||||||||||||||
Recorded investment of loans in the consumer loan portfolio based on the credit risk profile of loans in a performing and nonperforming status | ' | ||||||||||||||||||||||||||||
The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
Residential Mortgage | Consumer | Home Equity | Total | ||||||||||||||||||||||||||
Installment | Consumer | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||
Performing | $ | 947,768 | $ | 743,121 | $ | 529,093 | $ | 2,219,982 | |||||||||||||||||||||
Nonperforming | 12,217 | 536 | 3,371 | 16,124 | |||||||||||||||||||||||||
Subtotal | 959,985 | 743,657 | 532,464 | 2,236,106 | |||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||
Performing | 10,343 | 1,124 | 28,227 | 39,694 | |||||||||||||||||||||||||
Nonperforming | 69 | — | 63 | 132 | |||||||||||||||||||||||||
Subtotal | 10,412 | 1,124 | 28,290 | 39,826 | |||||||||||||||||||||||||
Total | $ | 970,397 | $ | 744,781 | $ | 560,754 | $ | 2,275,932 | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||
Performing | $ | 934,747 | $ | 642,370 | $ | 488,996 | $ | 2,066,113 | |||||||||||||||||||||
Nonperforming | 14,134 | 676 | 3,382 | 18,192 | |||||||||||||||||||||||||
Subtotal | 948,881 | 643,046 | 492,378 | 2,084,305 | |||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||
Performing | 11,481 | 1,723 | 31,182 | 44,386 | |||||||||||||||||||||||||
Nonperforming | 61 | — | 43 | 104 | |||||||||||||||||||||||||
Subtotal | 11,542 | 1,723 | 31,225 | 44,490 | |||||||||||||||||||||||||
Total | $ | 960,423 | $ | 644,769 | $ | 523,603 | $ | 2,128,795 | |||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||
Performing | $ | 873,543 | $ | 574,354 | $ | 455,490 | $ | 1,903,387 | |||||||||||||||||||||
Nonperforming | 12,651 | 552 | 3,753 | 16,956 | |||||||||||||||||||||||||
Subtotal | 886,194 | 574,906 | 459,243 | 1,920,343 | |||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||
Performing | 12,622 | 2,335 | 35,583 | 50,540 | |||||||||||||||||||||||||
Nonperforming | — | — | 118 | 118 | |||||||||||||||||||||||||
Subtotal | 12,622 | 2,335 | 35,701 | 50,658 | |||||||||||||||||||||||||
Total | $ | 898,816 | $ | 577,241 | $ | 494,944 | $ | 1,971,001 | |||||||||||||||||||||
Summary of nonperforming loans | ' | ||||||||||||||||||||||||||||
A summary of nonperforming loans follows: | |||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial | $ | 18,773 | $ | 18,374 | $ | 11,052 | |||||||||||||||||||||||
Commercial real estate | 25,361 | 28,598 | 28,498 | ||||||||||||||||||||||||||
Real estate construction | 160 | 371 | 183 | ||||||||||||||||||||||||||
Land development | 2,184 | 2,309 | 3,434 | ||||||||||||||||||||||||||
Residential mortgage | 6,325 | 8,921 | 9,241 | ||||||||||||||||||||||||||
Consumer installment | 536 | 676 | 552 | ||||||||||||||||||||||||||
Home equity | 2,296 | 2,648 | 3,064 | ||||||||||||||||||||||||||
Total nonaccrual loans | 55,635 | 61,897 | 56,024 | ||||||||||||||||||||||||||
Accruing loans contractually past due 90 days or more as to interest or principal payments: | |||||||||||||||||||||||||||||
Commercial | 15 | 536 | 1 | ||||||||||||||||||||||||||
Commercial real estate | 69 | 190 | 78 | ||||||||||||||||||||||||||
Real estate construction | — | — | — | ||||||||||||||||||||||||||
Land development | — | — | — | ||||||||||||||||||||||||||
Residential mortgage | 376 | 537 | 164 | ||||||||||||||||||||||||||
Consumer installment | — | — | — | ||||||||||||||||||||||||||
Home equity | 1,075 | 734 | 689 | ||||||||||||||||||||||||||
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 1,535 | 1,997 | 932 | ||||||||||||||||||||||||||
Nonperforming TDRs: | |||||||||||||||||||||||||||||
Commercial loan portfolio | 11,049 | 13,414 | 19,140 | ||||||||||||||||||||||||||
Consumer loan portfolio | 5,516 | 4,676 | 3,246 | ||||||||||||||||||||||||||
Total nonperforming TDRs | 16,565 | 18,090 | 22,386 | ||||||||||||||||||||||||||
Total nonperforming loans | $ | 73,735 | $ | 81,984 | $ | 79,342 | |||||||||||||||||||||||
Schedule of Impaired loans by classes | ' | ||||||||||||||||||||||||||||
The following schedule presents impaired loans by classes of loans at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||||||
Investment | Principal | Valuation | |||||||||||||||||||||||||||
Balance | Allowance | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 2,905 | $ | 3,258 | $ | 563 | |||||||||||||||||||||||
Commercial real estate | 4,369 | 5,605 | 777 | ||||||||||||||||||||||||||
Real estate construction | — | — | — | ||||||||||||||||||||||||||
Land development | — | — | — | ||||||||||||||||||||||||||
Residential mortgage | 20,353 | 20,353 | 379 | ||||||||||||||||||||||||||
Subtotal | 27,627 | 29,216 | 1,719 | ||||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 39,420 | 43,463 | — | ||||||||||||||||||||||||||
Commercial real estate | 46,205 | 58,997 | — | ||||||||||||||||||||||||||
Real estate construction | 160 | 366 | — | ||||||||||||||||||||||||||
Land development | 4,211 | 7,506 | — | ||||||||||||||||||||||||||
Residential mortgage | 6,325 | 6,325 | — | ||||||||||||||||||||||||||
Consumer installment | 536 | 536 | — | ||||||||||||||||||||||||||
Home equity | 2,296 | 2,296 | — | ||||||||||||||||||||||||||
Subtotal | 99,153 | 119,489 | — | ||||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 42,325 | 46,721 | 563 | ||||||||||||||||||||||||||
Commercial real estate | 50,574 | 64,602 | 777 | ||||||||||||||||||||||||||
Real estate construction | 160 | 366 | — | ||||||||||||||||||||||||||
Land development | 4,211 | 7,506 | — | ||||||||||||||||||||||||||
Residential mortgage | 26,678 | 26,678 | 379 | ||||||||||||||||||||||||||
Consumer installment | 536 | 536 | — | ||||||||||||||||||||||||||
Home equity | 2,296 | 2,296 | — | ||||||||||||||||||||||||||
Total | $ | 126,780 | $ | 148,705 | $ | 1,719 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 2,517 | $ | 2,656 | $ | 728 | |||||||||||||||||||||||
Commercial real estate | 2,576 | 2,965 | 353 | ||||||||||||||||||||||||||
Real estate construction | — | — | — | ||||||||||||||||||||||||||
Land development | — | — | — | ||||||||||||||||||||||||||
Residential mortgage | 17,408 | 17,408 | 510 | ||||||||||||||||||||||||||
Subtotal | 22,501 | 23,029 | 1,591 | ||||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 38,838 | 44,377 | — | ||||||||||||||||||||||||||
Commercial real estate | 48,220 | 61,444 | — | ||||||||||||||||||||||||||
Real estate construction | 371 | 478 | — | ||||||||||||||||||||||||||
Land development | 7,170 | 11,817 | — | ||||||||||||||||||||||||||
Residential mortgage | 8,921 | 8,921 | — | ||||||||||||||||||||||||||
Consumer installment | 676 | 676 | — | ||||||||||||||||||||||||||
Home equity | 2,648 | 2,648 | — | ||||||||||||||||||||||||||
Subtotal | 106,844 | 130,361 | — | ||||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 41,355 | 47,033 | 728 | ||||||||||||||||||||||||||
Commercial real estate | 50,796 | 64,409 | 353 | ||||||||||||||||||||||||||
Real estate construction | 371 | 478 | — | ||||||||||||||||||||||||||
Land development | 7,170 | 11,817 | — | ||||||||||||||||||||||||||
Residential mortgage | 26,329 | 26,329 | 510 | ||||||||||||||||||||||||||
Consumer installment | 676 | 676 | — | ||||||||||||||||||||||||||
Home equity | 2,648 | 2,648 | — | ||||||||||||||||||||||||||
Total | $ | 129,345 | $ | 153,390 | $ | 1,591 | |||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||||||
Investment | Principal | Valuation | |||||||||||||||||||||||||||
Balance | Allowance | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 4,569 | $ | 5,618 | $ | 1,610 | |||||||||||||||||||||||
Commercial real estate | 8,822 | 10,162 | 2,112 | ||||||||||||||||||||||||||
Real estate construction | — | — | — | ||||||||||||||||||||||||||
Land development | 2,039 | 2,872 | 130 | ||||||||||||||||||||||||||
Residential mortgage | 17,406 | 17,406 | 582 | ||||||||||||||||||||||||||
Subtotal | 32,836 | 36,058 | 4,434 | ||||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 21,969 | 25,934 | — | ||||||||||||||||||||||||||
Commercial real estate | 42,913 | 56,117 | — | ||||||||||||||||||||||||||
Real estate construction | 397 | 467 | — | ||||||||||||||||||||||||||
Land development | 8,495 | 11,675 | — | ||||||||||||||||||||||||||
Residential mortgage | 9,241 | 9,241 | — | ||||||||||||||||||||||||||
Consumer installment | 552 | 552 | — | ||||||||||||||||||||||||||
Home equity | 3,064 | 3,064 | — | ||||||||||||||||||||||||||
Subtotal | 86,631 | 107,050 | — | ||||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 26,538 | 31,552 | 1,610 | ||||||||||||||||||||||||||
Commercial real estate | 51,735 | 66,279 | 2,112 | ||||||||||||||||||||||||||
Real estate construction | 397 | 467 | — | ||||||||||||||||||||||||||
Land development | 10,534 | 14,547 | 130 | ||||||||||||||||||||||||||
Residential mortgage | 26,647 | 26,647 | 582 | ||||||||||||||||||||||||||
Consumer installment | 552 | 552 | — | ||||||||||||||||||||||||||
Home equity | 3,064 | 3,064 | — | ||||||||||||||||||||||||||
Total | $ | 119,467 | $ | 143,108 | $ | 4,434 | |||||||||||||||||||||||
Schedule presents information related to impaired loans | ' | ||||||||||||||||||||||||||||
The following schedule presents information related to impaired loans for the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Average | Interest Income | Average | Interest Income | ||||||||||||||||||||||||||
Recorded | Recognized | Recorded | Recognized | ||||||||||||||||||||||||||
Investment | While on | Investment | While on | ||||||||||||||||||||||||||
Impaired Status | Impaired Status | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 42,629 | $ | 347 | $ | 42,118 | $ | 680 | |||||||||||||||||||||
Commercial real estate | 51,260 | 366 | 52,290 | 727 | |||||||||||||||||||||||||
Real estate construction | 163 | — | 165 | — | |||||||||||||||||||||||||
Land development | 4,312 | 34 | 4,478 | 71 | |||||||||||||||||||||||||
Residential mortgage | 26,737 | 328 | 26,758 | 631 | |||||||||||||||||||||||||
Consumer installment | 634 | — | 704 | — | |||||||||||||||||||||||||
Home equity | 2,221 | — | 2,194 | — | |||||||||||||||||||||||||
Total | $ | 127,956 | $ | 1,075 | $ | 128,707 | $ | 2,109 | |||||||||||||||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Average | Interest Income | Average | Interest Income | ||||||||||||||||||||||||||
Recorded | Recognized | Recorded | Recognized | ||||||||||||||||||||||||||
Investment | While on | Investment | While on | ||||||||||||||||||||||||||
Impaired Status | Impaired Status | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 26,704 | $ | 225 | $ | 26,828 | $ | 418 | |||||||||||||||||||||
Commercial real estate | 53,434 | 412 | 55,090 | 700 | |||||||||||||||||||||||||
Real estate construction | 410 | 3 | 386 | 5 | |||||||||||||||||||||||||
Land development | 10,879 | 91 | 10,897 | 182 | |||||||||||||||||||||||||
Residential mortgage | 26,903 | 274 | 27,911 | 569 | |||||||||||||||||||||||||
Consumer installment | 647 | — | 683 | — | |||||||||||||||||||||||||
Home equity | 2,878 | — | 2,920 | — | |||||||||||||||||||||||||
Total | $ | 121,855 | $ | 1,005 | $ | 124,715 | $ | 1,874 | |||||||||||||||||||||
Schedule representing the aging status of the recorded investment in loans by classes | ' | ||||||||||||||||||||||||||||
The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
31-60 | 61-89 | Accruing | Non-accrual | Total | Current | Total | |||||||||||||||||||||||
Days | Days | Loans | Loans | Past Due | Loans | ||||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||||||
90 Days | |||||||||||||||||||||||||||||
or More | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 4,149 | $ | 1,901 | $ | 15 | $ | 18,773 | $ | 24,838 | $ | 1,113,685 | $ | 1,138,523 | |||||||||||||||
Commercial real estate | 5,933 | 233 | 69 | 25,361 | 31,596 | 1,123,319 | 1,154,915 | ||||||||||||||||||||||
Real estate construction | — | — | — | 160 | 160 | 88,415 | 88,575 | ||||||||||||||||||||||
Land development | — | — | — | 2,184 | 2,184 | 4,106 | 6,290 | ||||||||||||||||||||||
Residential mortgage | 2,515 | — | 376 | 6,325 | 9,216 | 950,769 | 959,985 | ||||||||||||||||||||||
Consumer installment | 2,513 | 313 | — | 536 | 3,362 | 740,295 | 743,657 | ||||||||||||||||||||||
Home equity | 2,002 | 985 | 1,075 | 2,296 | 6,358 | 526,106 | 532,464 | ||||||||||||||||||||||
Total | $ | 17,112 | $ | 3,432 | $ | 1,535 | $ | 55,635 | $ | 77,714 | $ | 4,546,695 | $ | 4,624,409 | |||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 6,744 | $ | — | $ | 6,744 | $ | 67,116 | $ | 73,860 | |||||||||||||||
Commercial real estate | — | — | 1,594 | — | 1,594 | 141,856 | 143,450 | ||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 12,593 | 12,593 | ||||||||||||||||||||||
Land development | — | — | 1,977 | — | 1,977 | 2,689 | 4,666 | ||||||||||||||||||||||
Residential mortgage | — | — | 69 | — | 69 | 10,343 | 10,412 | ||||||||||||||||||||||
Consumer installment | 20 | — | — | — | 20 | 1,104 | 1,124 | ||||||||||||||||||||||
Home equity | 325 | 49 | 63 | — | 437 | 27,853 | 28,290 | ||||||||||||||||||||||
Total | $ | 345 | $ | 49 | $ | 10,447 | $ | — | $ | 10,841 | $ | 263,554 | $ | 274,395 | |||||||||||||||
31-60 | 61-89 | Accruing | Non-accrual | Total | Current | Total | |||||||||||||||||||||||
Days | Days | Loans | Loans | Past Due | Loans | ||||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||||||
90 Days | |||||||||||||||||||||||||||||
or More | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 4,748 | $ | 865 | $ | 536 | $ | 18,374 | $ | 24,523 | $ | 1,068,170 | $ | 1,092,693 | |||||||||||||||
Commercial real estate | 8,560 | 1,604 | 190 | 28,598 | 38,952 | 1,046,235 | 1,085,187 | ||||||||||||||||||||||
Real estate construction | — | 4,107 | — | 371 | 4,478 | 72,981 | 77,459 | ||||||||||||||||||||||
Land development | — | — | — | 2,309 | 2,309 | 10,971 | 13,280 | ||||||||||||||||||||||
Residential mortgage | 2,191 | 103 | 537 | 8,921 | 11,752 | 937,129 | 948,881 | ||||||||||||||||||||||
Consumer installment | 2,630 | 359 | — | 676 | 3,665 | 639,381 | 643,046 | ||||||||||||||||||||||
Home equity | 1,452 | 278 | 734 | 2,648 | 5,112 | 487,266 | 492,378 | ||||||||||||||||||||||
Total | $ | 19,581 | $ | 7,316 | $ | 1,997 | $ | 61,897 | $ | 90,791 | $ | 4,262,133 | $ | 4,352,924 | |||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 5,656 | $ | — | $ | 5,656 | $ | 77,958 | $ | 83,614 | |||||||||||||||
Commercial real estate | — | 133 | 1,695 | — | 1,828 | 145,643 | 147,471 | ||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 12,336 | 12,336 | ||||||||||||||||||||||
Land development | — | — | 2,332 | — | 2,332 | 4,454 | 6,786 | ||||||||||||||||||||||
Residential mortgage | — | — | 61 | — | 61 | 11,481 | 11,542 | ||||||||||||||||||||||
Consumer installment | 3 | 51 | — | — | 54 | 1,669 | 1,723 | ||||||||||||||||||||||
Home equity | 394 | — | 43 | — | 437 | 30,788 | 31,225 | ||||||||||||||||||||||
Total | $ | 397 | $ | 184 | $ | 9,787 | $ | — | $ | 10,368 | $ | 284,329 | $ | 294,697 | |||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 6,572 | $ | 2,251 | $ | 1 | $ | 11,052 | $ | 19,876 | $ | 967,034 | $ | 986,910 | |||||||||||||||
Commercial real estate | 9,001 | 3,974 | 78 | 28,498 | 41,551 | 962,021 | 1,003,572 | ||||||||||||||||||||||
Real estate construction | — | — | — | 183 | 183 | 60,691 | 60,874 | ||||||||||||||||||||||
Land development | — | — | — | 3,434 | 3,434 | 15,500 | 18,934 | ||||||||||||||||||||||
Residential mortgage | 2,871 | 67 | 164 | 9,241 | 12,343 | 873,851 | 886,194 | ||||||||||||||||||||||
Consumer installment | 2,564 | 359 | — | 552 | 3,475 | 571,431 | 574,906 | ||||||||||||||||||||||
Home equity | 1,520 | 349 | 689 | 3,064 | 5,622 | 453,621 | 459,243 | ||||||||||||||||||||||
Total | $ | 22,528 | $ | 7,000 | $ | 932 | $ | 56,024 | $ | 86,484 | $ | 3,904,149 | $ | 3,990,633 | |||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 2,328 | $ | — | $ | 2,328 | $ | 102,656 | $ | 104,984 | |||||||||||||||
Commercial real estate | — | — | 3,389 | — | 3,389 | 165,386 | 168,775 | ||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 12,574 | 12,574 | ||||||||||||||||||||||
Land development | 2,080 | — | 2,564 | — | 4,644 | 3,603 | 8,247 | ||||||||||||||||||||||
Residential mortgage | 198 | 78 | — | — | 276 | 12,346 | 12,622 | ||||||||||||||||||||||
Consumer installment | 3 | — | — | — | 3 | 2,332 | 2,335 | ||||||||||||||||||||||
Home equity | 297 | — | 119 | — | 416 | 35,285 | 35,701 | ||||||||||||||||||||||
Total | $ | 2,578 | $ | 78 | $ | 8,400 | $ | — | $ | 11,056 | $ | 334,182 | $ | 345,238 | |||||||||||||||
Schedule of Corporation's TDRs | ' | ||||||||||||||||||||||||||||
The following schedule presents the Corporation’s loans reported as TDRs at June 30, 2014, December 31, 2013 and June 30, 2013: | |||||||||||||||||||||||||||||
Performing TDRs | Non-Performing TDRs | Nonaccrual TDRs | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||
Commercial loan portfolio | $ | 29,296 | $ | 11,049 | $ | 40,351 | $ | 80,696 | |||||||||||||||||||||
Consumer loan portfolio | 14,837 | 5,516 | 3,334 | 23,687 | |||||||||||||||||||||||||
Total | $ | 44,133 | $ | 16,565 | $ | 43,685 | $ | 104,383 | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Commercial loan portfolio | $ | 26,839 | $ | 13,414 | $ | 31,961 | $ | 72,214 | |||||||||||||||||||||
Consumer loan portfolio | 12,732 | 4,676 | 5,321 | 22,729 | |||||||||||||||||||||||||
Total | $ | 39,571 | $ | 18,090 | $ | 37,282 | $ | 94,943 | |||||||||||||||||||||
30-Jun-13 | |||||||||||||||||||||||||||||
Commercial loan portfolio | $ | 18,497 | $ | 19,140 | $ | 34,678 | $ | 72,315 | |||||||||||||||||||||
Consumer loan portfolio | 14,160 | 3,246 | 5,378 | 22,784 | |||||||||||||||||||||||||
Total | $ | 32,657 | $ | 22,386 | $ | 40,056 | $ | 95,099 | |||||||||||||||||||||
Schedule providing information on TDRs | ' | ||||||||||||||||||||||||||||
The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | ||||||||||||||||||||||||
of Loans | Modification | Modification | of Loans | Modification | Modification | ||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 15 | $ | 3,575 | $ | 3,575 | 27 | $ | 11,931 | $ | 11,931 | |||||||||||||||||||
Commercial real estate | 12 | 3,134 | 3,134 | 21 | 5,924 | 5,924 | |||||||||||||||||||||||
Land development | — | — | — | 1 | 72 | 72 | |||||||||||||||||||||||
Subtotal – commercial loan portfolio | 27 | 6,709 | 6,709 | 49 | 17,927 | 17,927 | |||||||||||||||||||||||
Consumer loan portfolio | 63 | 1,649 | 1,648 | 93 | 2,636 | 2,626 | |||||||||||||||||||||||
Total | 90 | $ | 8,358 | $ | 8,357 | 142 | $ | 20,563 | $ | 20,553 | |||||||||||||||||||
Three Months Ended June 30, 2013 (As Revised) | Six Months Ended June 30, 2013 (As Revised) | ||||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | ||||||||||||||||||||||||
of Loans | Modification | Modification | of Loans | Modification | Modification | ||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 8 | $ | 2,753 | $ | 2,753 | 19 | $ | 4,359 | $ | 4,359 | |||||||||||||||||||
Commercial real estate | 10 | 4,019 | 4,019 | 24 | 7,663 | 7,663 | |||||||||||||||||||||||
Real estate construction | — | — | — | 2 | 364 | 364 | |||||||||||||||||||||||
Land development | 2 | 1,526 | 1,526 | 4 | 1,958 | 1,958 | |||||||||||||||||||||||
Subtotal – commercial loan portfolio | 20 | 8,298 | 8,298 | 49 | 14,344 | 14,344 | |||||||||||||||||||||||
Consumer loan portfolio | 19 | 765 | 745 | 37 | 2,156 | 2,100 | |||||||||||||||||||||||
Total | 39 | $ | 9,063 | $ | 9,043 | 86 | $ | 16,500 | $ | 16,444 | |||||||||||||||||||
Troubled debt restructurings on financing receivables with defaults payment | ' | ||||||||||||||||||||||||||||
The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2014 and 2013, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default: | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Number of | Principal Balance at End of Period | Number of | Principal Balance at End of Period | ||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 5 | $ | 771 | 6 | $ | 875 | |||||||||||||||||||||||
Commercial real estate | 3 | 603 | 5 | 2,273 | |||||||||||||||||||||||||
Subtotal – commercial loan portfolio | 8 | 1,374 | 11 | 3,148 | |||||||||||||||||||||||||
Consumer loan portfolio | 3 | 80 | 3 | 80 | |||||||||||||||||||||||||
Total | 11 | $ | 1,454 | 14 | $ | 3,228 | |||||||||||||||||||||||
Three Months Ended June 30, 2013 (As Revised) | Six Months Ended June 30, 2013 (As Revised) | ||||||||||||||||||||||||||||
Number of | Principal Balance at End of Period | Number of | Principal Balance at End of Period | ||||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | — | $ | — | 17 | $ | 1,053 | |||||||||||||||||||||||
Commercial real estate | — | — | 1 | 126 | |||||||||||||||||||||||||
Real estate construction | — | — | 1 | 160 | |||||||||||||||||||||||||
Land development | 2 | 1,526 | 2 | 1,526 | |||||||||||||||||||||||||
Subtotal – commercial loan portfolio | 2 | 1,526 | 21 | 2,865 | |||||||||||||||||||||||||
Consumer loan portfolio | 4 | 19 | 9 | 503 | |||||||||||||||||||||||||
Total | 6 | $ | 1,545 | 30 | $ | 3,368 | |||||||||||||||||||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ' | ||||||||||||||||||||||||||||
The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2014 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2014 by impairment evaluation method. | |||||||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Loan | Loan | ||||||||||||||||||||||||||||
Portfolio | Portfolio | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Changes in allowance for loan losses for the three months ended June 30, 2014: | |||||||||||||||||||||||||||||
Beginning balance | $ | 45,010 | $ | 29,233 | $ | 4,230 | $ | 78,473 | |||||||||||||||||||||
Provision for loan losses | 439 | 1,287 | (226 | ) | 1,500 | ||||||||||||||||||||||||
Charge-offs | (1,814 | ) | (1,561 | ) | — | (3,375 | ) | ||||||||||||||||||||||
Recoveries | 589 | 606 | — | 1,195 | |||||||||||||||||||||||||
Ending balance | $ | 44,224 | $ | 29,565 | $ | 4,004 | $ | 77,793 | |||||||||||||||||||||
Changes in allowance for loan losses for the six months ended June 30, 2014: | |||||||||||||||||||||||||||||
Beginning balance | $ | 44,482 | $ | 30,145 | $ | 4,445 | $ | 79,072 | |||||||||||||||||||||
Provision for loan losses | 1,399 | 2,142 | (441 | ) | 3,100 | ||||||||||||||||||||||||
Charge-offs | (3,023 | ) | (3,824 | ) | — | (6,847 | ) | ||||||||||||||||||||||
Recoveries | 1,366 | 1,102 | — | 2,468 | |||||||||||||||||||||||||
Ending balance | $ | 44,224 | $ | 29,565 | $ | 4,004 | $ | 77,793 | |||||||||||||||||||||
Allowance for loan losses balance at June 30, 2014 attributable to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,340 | $ | 379 | $ | — | $ | 1,719 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 42,884 | 28,686 | 4,004 | 75,574 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | 500 | — | 500 | |||||||||||||||||||||||||
Total | $ | 44,224 | $ | 29,565 | $ | 4,004 | $ | 77,793 | |||||||||||||||||||||
Recorded investment (loan balance) at June 30, 2014: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 86,823 | $ | 20,353 | $ | — | $ | 107,176 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 2,301,480 | 2,215,753 | — | 4,517,233 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 234,569 | 39,826 | — | 274,395 | |||||||||||||||||||||||||
Total | $ | 2,622,872 | $ | 2,275,932 | $ | — | $ | 4,898,804 | |||||||||||||||||||||
The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2013 by impairment evaluation method. | |||||||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Loan | Loan | ||||||||||||||||||||||||||||
Portfolio | Portfolio | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Allowance for loan losses balance at December 31, 2013 attributable to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,081 | $ | 510 | $ | — | $ | 1,591 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 43,401 | 29,135 | 4,445 | 76,981 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | 500 | — | 500 | |||||||||||||||||||||||||
Total | $ | 44,482 | $ | 30,145 | $ | 4,445 | $ | 79,072 | |||||||||||||||||||||
Recorded investment (loan balance) at December 31, 2013: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 89,905 | $ | 17,408 | $ | — | $ | 107,313 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 2,178,714 | 2,066,897 | — | 4,245,611 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 250,207 | 44,490 | — | 294,697 | |||||||||||||||||||||||||
Total | $ | 2,518,826 | $ | 2,128,795 | $ | — | $ | 4,647,621 | |||||||||||||||||||||
The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2013 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2013 by impairment evaluation method. | |||||||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Loan | Loan | ||||||||||||||||||||||||||||
Portfolio | Portfolio | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Changes in allowance for loan losses for the three months ended June 30, 2013: | |||||||||||||||||||||||||||||
Beginning balance | $ | 49,107 | $ | 28,852 | $ | 4,875 | $ | 82,834 | |||||||||||||||||||||
Provision for loan losses | 568 | 1,648 | 784 | 3,000 | |||||||||||||||||||||||||
Charge-offs | (3,221 | ) | (2,140 | ) | — | (5,361 | ) | ||||||||||||||||||||||
Recoveries | 1,326 | 385 | — | 1,711 | |||||||||||||||||||||||||
Ending balance | $ | 47,780 | $ | 28,745 | $ | 5,659 | $ | 82,184 | |||||||||||||||||||||
Changes in allowance for loan losses for the six months ended June 30, 2013: | |||||||||||||||||||||||||||||
Beginning balance | $ | 49,975 | $ | 29,333 | $ | 5,183 | $ | 84,491 | |||||||||||||||||||||
Provision for loan losses | 3,005 | 2,519 | 476 | 6,000 | |||||||||||||||||||||||||
Charge-offs | (6,737 | ) | (4,098 | ) | — | (10,835 | ) | ||||||||||||||||||||||
Recoveries | 1,537 | 991 | — | 2,528 | |||||||||||||||||||||||||
Ending balance | $ | 47,780 | $ | 28,745 | $ | 5,659 | $ | 82,184 | |||||||||||||||||||||
Allowance for loan losses balance at June 30, 2013 attributable to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 3,852 | $ | 582 | $ | — | $ | 4,434 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 43,928 | 27,663 | 5,659 | 77,250 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | 500 | — | 500 | |||||||||||||||||||||||||
Total | $ | 47,780 | $ | 28,745 | $ | 5,659 | $ | 82,184 | |||||||||||||||||||||
Recorded investment (loan balance) at June 30, 2013: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 80,804 | $ | 17,406 | $ | — | $ | 98,210 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 1,989,486 | 1,902,937 | — | 3,892,423 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 294,580 | 50,658 | — | 345,238 | |||||||||||||||||||||||||
Total | $ | 2,364,870 | $ | 1,971,001 | $ | — | $ | 4,335,871 | |||||||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Net carrying value of intangible assets | ' | ||||||||||||||||
The following table shows the net carrying value of the Corporation’s intangible assets: | |||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Goodwill | $ | 120,164 | $ | 120,164 | $ | 120,164 | |||||||||||
Other intangible assets: | |||||||||||||||||
Core deposit intangible assets | $ | 9,110 | $ | 10,001 | $ | 10,933 | |||||||||||
Mortgage servicing rights | 3,344 | 3,423 | 3,421 | ||||||||||||||
Total other intangible assets | $ | 12,454 | $ | 13,424 | $ | 14,354 | |||||||||||
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | ' | ||||||||||||||||
The following table sets forth the carrying amount, accumulated amortization and amortization expense of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions: | |||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Gross original amount | $ | 18,659 | $ | 18,659 | $ | 18,659 | |||||||||||
Accumulated amortization | 9,549 | 8,658 | 7,726 | ||||||||||||||
Carrying amount | $ | 9,110 | $ | 10,001 | $ | 10,933 | |||||||||||
Amortization expense for the three months ended June 30 | $ | 446 | $ | 484 | |||||||||||||
Amortization expense for the six months ended June 30 | $ | 891 | $ | 977 | |||||||||||||
Net carrying value, fair value of MSRs and loans Corporation servicing for others | ' | ||||||||||||||||
The following shows the net carrying value and fair value of MSRs and the total loans that the Corporation is servicing for others: | |||||||||||||||||
June 30, | December 31, | June 30, | |||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||
(In thousands) | |||||||||||||||||
Net carrying value of MSRs | $ | 3,344 | $ | 3,423 | $ | 3,421 | |||||||||||
Fair value of MSRs | $ | 6,433 | $ | 6,878 | $ | 6,417 | |||||||||||
Loans serviced for others that have servicing rights capitalized | $ | 871,158 | $ | 886,730 | $ | 899,823 | |||||||||||
Activity for capitalized MSRs | ' | ||||||||||||||||
The following table shows the activity for capitalized MSRs: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at beginning of period | $ | 3,316 | $ | 3,485 | $ | 3,423 | $ | 3,478 | |||||||||
Additions | 278 | 445 | 421 | 960 | |||||||||||||
Amortization | (250 | ) | (509 | ) | (500 | ) | (1,017 | ) | |||||||||
Balance at end of period | $ | 3,344 | $ | 3,421 | $ | 3,344 | $ | 3,421 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Components of accumulated other comprehensive loss, net of related tax benefit/expense | ' | ||||||||||||
The components of accumulated other comprehensive loss, net of related tax benefit/expense, were as follows: | |||||||||||||
June 30, | December 31, | June 30, | |||||||||||
2014 | 2013 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $431 at June 30, 2014, $(1,335) at December 31, 2013 and $(486) at June 30, 2013 | $ | 800 | $ | (2,480 | ) | $ | (905 | ) | |||||
Pension and other postretirement benefits adjustment, net of related tax benefit of $10,117 at June 30, 2014, $9,714 at December 31, 2013 and $18,394 at June 30, 2013 | (18,788 | ) | (18,040 | ) | (34,160 | ) | |||||||
Accumulated other comprehensive loss | $ | (17,988 | ) | $ | (20,520 | ) | $ | (35,065 | ) |
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||||||||||||
Corporation's and Chemical Bank's actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy | ' | |||||||||||||||||||||
The summary below compares the Corporation’s and Chemical Bank’s actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy: | ||||||||||||||||||||||
Actual | Minimum Required for Capital Adequacy Purposes | Required to be Well Capitalized Under Prompt Corrective Action Regulations | ||||||||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | |||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||
Total Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | $ | 748,332 | 15.3 | % | $ | 391,911 | 8 | % | N/A | N/A | ||||||||||||
Chemical Bank | 601,561 | 12.3 | 391,305 | 8 | $ | 489,131 | 10 | % | ||||||||||||||
Tier 1 Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | 686,892 | 14 | 195,955 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 540,214 | 11 | 195,653 | 4 | 293,479 | 6 | ||||||||||||||||
Leverage Ratio: | ||||||||||||||||||||||
Corporation | 686,892 | 11.2 | 244,757 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 540,214 | 8.8 | 244,604 | 4 | 305,755 | 5 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||
Total Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | $ | 649,836 | 14 | % | $ | 371,465 | 8 | % | N/A | N/A | ||||||||||||
Chemical Bank | 579,494 | 12.5 | 370,881 | 8 | $ | 463,601 | 10 | % | ||||||||||||||
Tier 1 Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | 591,535 | 12.7 | 185,732 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 521,283 | 11.2 | 185,440 | 4 | 278,160 | 6 | ||||||||||||||||
Leverage Ratio: | ||||||||||||||||||||||
Corporation | 591,535 | 9.9 | 239,010 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 521,283 | 8.7 | 238,884 | 4 | 298,605 | 5 | ||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||
Total Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | $ | 572,503 | 13.1 | % | $ | 348,442 | 8 | % | N/A | N/A | ||||||||||||
Chemical Bank | 556,536 | 12.8 | 347,865 | 8 | $ | 434,831 | 10 | % | ||||||||||||||
Tier 1 Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | 517,716 | 11.9 | 174,221 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 501,839 | 11.5 | 173,932 | 4 | 260,899 | 6 | ||||||||||||||||
Leverage Ratio: | ||||||||||||||||||||||
Corporation | 517,716 | 9.1 | 228,436 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 501,839 | 8.8 | 228,126 | 4 | 285,157 | 5 | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Summary of assets measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||
For assets measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets were as follows: | ||||||||||||||||||||||||||
Fair Value Measurements – Recurring Basis | ||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||
In Active | Other | Unobservable | ||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||
Investment securities – available-for-sale: | ||||||||||||||||||||||||||
Government sponsored agencies | $ | — | $ | 88,708 | $ | — | $ | 88,708 | ||||||||||||||||||
State and political subdivisions | — | 41,608 | — | 41,608 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 265,368 | — | 265,368 | ||||||||||||||||||||||
Collateralized mortgage obligations | — | 153,283 | — | 153,283 | ||||||||||||||||||||||
Corporate bonds | — | 65,352 | — | 65,352 | ||||||||||||||||||||||
Preferred stock | — | 1,656 | — | 1,656 | ||||||||||||||||||||||
Total investment securities – available-for-sale | — | 615,975 | — | 615,975 | ||||||||||||||||||||||
Loans held-for-sale | — | 6,329 | — | 6,329 | ||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 622,304 | $ | — | $ | 622,304 | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Investment securities – available-for-sale: | ||||||||||||||||||||||||||
Government sponsored agencies | $ | — | $ | 93,763 | $ | — | $ | 93,763 | ||||||||||||||||||
State and political subdivisions | — | 43,798 | — | 43,798 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 299,366 | — | 299,366 | ||||||||||||||||||||||
Collateralized mortgage obligations | — | 180,941 | — | 180,941 | ||||||||||||||||||||||
Corporate bonds | — | 65,275 | — | 65,275 | ||||||||||||||||||||||
Preferred stock | — | 1,427 | — | 1,427 | ||||||||||||||||||||||
Total investment securities – available-for-sale | — | 684,570 | — | 684,570 | ||||||||||||||||||||||
Loans held-for-sale | — | 5,219 | — | 5,219 | ||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 689,789 | $ | — | $ | 689,789 | ||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||
Investment securities – available-for-sale: | ||||||||||||||||||||||||||
Government sponsored agencies | $ | — | $ | 92,088 | $ | — | $ | 92,088 | ||||||||||||||||||
State and political subdivisions | — | 45,780 | — | 45,780 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 308,372 | — | 308,372 | ||||||||||||||||||||||
Collateralized mortgage obligations | — | 220,515 | — | 220,515 | ||||||||||||||||||||||
Corporate bonds | — | 65,515 | — | 65,515 | ||||||||||||||||||||||
Preferred stock | — | 1,782 | — | 1,782 | ||||||||||||||||||||||
Total investment securities – available-for-sale | — | 734,052 | — | 734,052 | ||||||||||||||||||||||
Loans held-for-sale | — | 9,180 | — | 9,180 | ||||||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 743,232 | $ | — | $ | 743,232 | ||||||||||||||||||
Summary of assets measured at fair value on a nonrecurring basis | ' | |||||||||||||||||||||||||
For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets were as follows: | ||||||||||||||||||||||||||
Fair Value Measurements – Nonrecurring Basis | ||||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||||
In Active | Other | Unobservable | ||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 29,789 | $ | 29,789 | ||||||||||||||||||
Other real estate/repossessed assets | — | — | 10,392 | 10,392 | ||||||||||||||||||||||
Total | $ | — | $ | — | $ | 40,181 | $ | 40,181 | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 28,852 | $ | 28,852 | ||||||||||||||||||
Other real estate/repossessed assets | — | — | 9,776 | 9,776 | ||||||||||||||||||||||
Total | $ | — | $ | — | $ | 38,628 | $ | 38,628 | ||||||||||||||||||
30-Jun-13 | ||||||||||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 41,704 | $ | 41,704 | ||||||||||||||||||
Other real estate/repossessed assets | — | — | 13,659 | 13,659 | ||||||||||||||||||||||
Total | $ | — | $ | — | $ | 55,363 | $ | 55,363 | ||||||||||||||||||
Summary of carrying amounts and estimated fair values of the financial instruments | ' | |||||||||||||||||||||||||
A summary of carrying amounts and estimated fair values of the Corporation’s financial instruments included in the consolidated statements of financial position was as follows: | ||||||||||||||||||||||||||
Level in Fair Value Measurement | 30-Jun-14 | 31-Dec-13 | 30-Jun-13 | |||||||||||||||||||||||
Hierarchy | Carrying | Fair | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 140,294 | $ | 140,294 | $ | 310,788 | $ | 310,788 | $ | 206,957 | $ | 206,957 | |||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Available-for-sale | Level 2 | 615,975 | 615,975 | 684,570 | 684,570 | 734,052 | 734,052 | |||||||||||||||||||
Held-to-maturity | Level 2 | 297,630 | 297,186 | 263,405 | 262,021 | 264,215 | 265,147 | |||||||||||||||||||
Held-to-maturity | Level 3 | 10,500 | 6,775 | 10,500 | 6,250 | 10,500 | 6,250 | |||||||||||||||||||
Nonmarketable equity securities | NA | 25,572 | 25,572 | 25,572 | 25,572 | 25,572 | 25,572 | |||||||||||||||||||
Loans held-for-sale | Level 2 | 6,329 | 6,329 | 5,219 | 5,219 | 9,180 | 9,180 | |||||||||||||||||||
Net loans | Level 3 | 4,821,011 | 4,826,672 | 4,568,549 | 4,575,532 | 4,253,687 | 4,260,726 | |||||||||||||||||||
Interest receivable | Level 2 | 15,827 | 15,827 | 15,748 | 15,748 | 15,844 | 15,844 | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits without defined maturities | Level 2 | $ | 3,814,013 | $ | 3,814,013 | $ | 3,790,454 | $ | 3,790,454 | $ | 3,434,266 | $ | 3,434,266 | |||||||||||||
Time deposits | Level 3 | 1,278,900 | 1,285,992 | 1,331,931 | 1,340,746 | 1,379,919 | 1,390,381 | |||||||||||||||||||
Interest payable | Level 2 | 735 | 735 | 868 | 868 | 1,085 | 1,085 | |||||||||||||||||||
Short-term borrowings | Level 2 | 305,422 | 305,422 | 327,428 | 327,428 | 346,995 | 346,995 | |||||||||||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Numerator and denominator of the basic and diluted earnings per common share computations | ' | |||||||||||||||
The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Numerator for both basic and diluted earnings per common share, net income | $ | 16,236 | $ | 14,203 | $ | 30,049 | $ | 27,437 | ||||||||
Denominator for basic earnings per common share, weighted average common shares outstanding | 30,068 | 27,534 | 29,947 | 27,527 | ||||||||||||
Weighted average common stock equivalents | 211 | 140 | 212 | 131 | ||||||||||||
Denominator for diluted earnings per common share | 30,279 | 27,674 | 30,159 | 27,658 | ||||||||||||
Basic earnings per common share | $ | 0.54 | $ | 0.52 | $ | 1 | $ | 1 | ||||||||
Diluted earnings per common share | 0.54 | 0.51 | 1 | 0.99 | ||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Summary of activity for Corporation's stock options | ' | ||||||||||||||||||
A summary of activity for the Corporation’s stock options as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||||
Non-Vested | Stock Options Outstanding | ||||||||||||||||||
Stock Options Outstanding | |||||||||||||||||||
Number of | Weighted- | Weighted- | Number of | Weighted- | |||||||||||||||
Options | Average | Average | Options | Average | |||||||||||||||
Exercise | Grant Date | Exercise | |||||||||||||||||
Price | Fair Value Per Share | Price | |||||||||||||||||
Per Share | Per Share | ||||||||||||||||||
Outstanding at January 1, 2014 | 414,080 | $ | 24.29 | $ | 7.19 | 1,073,990 | $ | 26.84 | |||||||||||
Granted | 190,011 | 29.45 | 9.64 | 190,011 | 29.45 | ||||||||||||||
Exercised | — | — | — | (64,071 | ) | 24.97 | |||||||||||||
Vested | (148,016 | ) | 23.43 | 6.98 | — | — | |||||||||||||
Forfeited/expired | (6,900 | ) | 24.57 | 7.26 | (8,287 | ) | 26.56 | ||||||||||||
Outstanding at June 30, 2014 | 449,175 | $ | 26.75 | $ | 8.3 | 1,191,643 | $ | 27.36 | |||||||||||
Exercisable/vested at June 30, 2014 | 742,468 | $ | 27.73 | ||||||||||||||||
Assumptions of Black-Scholes option pricing model | ' | ||||||||||||||||||
The fair value of the stock options granted during the six months ended June 30, 2014 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions. | |||||||||||||||||||
Expected dividend yield | 3 | % | |||||||||||||||||
Risk-free interest rate | 2.16 | % | |||||||||||||||||
Expected stock price volatility | 42.2 | % | |||||||||||||||||
Expected life of options – in years | 7 | ||||||||||||||||||
Weighted average fair value of options granted | $ | 9.64 | |||||||||||||||||
Summary of activity for restricted stock performance units | ' | ||||||||||||||||||
A summary of the activity for restricted stock units as of and for the six months ended June 30, 2014 is presented below: | |||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||
Units | Average | ||||||||||||||||||
Grant Date | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Per Unit | |||||||||||||||||||
Outstanding at January 1, 2014 | 188,532 | $ | 21.49 | ||||||||||||||||
Granted | 68,253 | 27.49 | |||||||||||||||||
Converted into shares of common stock | (51,224 | ) | 19.12 | ||||||||||||||||
Forfeited/expired | (1,278 | ) | 23.76 | ||||||||||||||||
Outstanding at June 30, 2014 | 204,283 | $ | 24.07 | ||||||||||||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | ' | ||||||||||||||||
The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Service cost | $ | 251 | $ | 325 | $ | 501 | $ | 650 | |||||||||
Interest cost | 1,312 | 1,167 | 2,624 | 2,334 | |||||||||||||
Expected return on plan assets | (2,079 | ) | (1,948 | ) | (4,157 | ) | (3,896 | ) | |||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||
Amortization of unrecognized net loss | 569 | 946 | 1,138 | 1,892 | |||||||||||||
Net periodic benefit cost | $ | 52 | $ | 489 | $ | 105 | $ | 979 | |||||||||
Postretirement Benefit Plan | |||||||||||||||||
Service cost | $ | 4 | $ | 4 | $ | 9 | $ | 9 | |||||||||
Interest cost | 36 | 36 | 71 | 72 | |||||||||||||
Amortization of prior service cost | 33 | 153 | 65 | 206 | |||||||||||||
Amortization of unrecognized net gain | (26 | ) | (18 | ) | (52 | ) | (37 | ) | |||||||||
Net periodic benefit cost | $ | 47 | $ | 175 | $ | 93 | $ | 250 | |||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 24, 2014 | Dec. 31, 2013 | Sep. 18, 2013 | Jun. 30, 2013 | 23-May-13 | Apr. 20, 2009 | Jan. 31, 2008 | |
Bank | |||||||||
Pools | |||||||||
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of banks through which company operates | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Number of regional banking units Chemical Bank operates through | ' | 4 | ' | ' | ' | ' | ' | ' | ' |
Number of minimum days when principal or interest is past due is placed in nonaccrual category | ' | '90 days | ' | ' | ' | ' | ' | ' | ' |
Number of minimum days in real estate residential loan when principal or interest is past due is placed in nonaccrual category | ' | '120 days | ' | ' | ' | ' | ' | ' | ' |
Time period in which payments receive consistently and loans are returned to accrual status | ' | '6 months | ' | ' | ' | ' | ' | ' | ' |
Number of pools of aggregate acquired loans based upon common risk characteristics | ' | 14 | ' | ' | ' | ' | ' | ' | ' |
Time period sustained for payment history of principal and interest payments to move them to performing status | ' | '6 months | ' | ' | ' | ' | ' | ' | ' |
Time period of real estate residential troubled debt restructurings reducing borrower's monthly payments by decreasing the interest rate charged on the loan | ' | '24 months | ' | ' | ' | ' | ' | ' | ' |
Minimum number of days past due as to interest or principal payments in accruing loans moves to nonperforming loans | ' | '90 days | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of loan reviewed for detailed credit quality | ' | $250,000 | ' | ' | ' | ' | ' | ' | ' |
Time period for historical loan loss experience | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of tax benefit is recognized for the amount likely to be realized | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Reserve for contingent income tax liabilities recorded | 0 | 0 | ' | 0 | ' | 0 | ' | ' | ' |
Number of shares authorized to be repurchased | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 |
Stock repurchased (shares) | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Number of remaining shares authorized to be repurchased (shares) | 500,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | 32,760,088 | 32,760,088 | 2,500,000 | 29,789,825 | 2,213,750 | 27,537,554 | ' | ' | ' |
CommonStockIssuedOverAllotment | ' | ' | 375,000 | ' | 288,750 | ' | ' | ' | ' |
Shares Issued, Price Per Share | ' | ' | $28 | ' | $26 | ' | ' | ' | ' |
Issuance of common stock, net of issuance costs | ' | ' | 76,200,000 | ' | 53,900,000 | ' | ' | ' | ' |
Stock Registered Under Universal Shelf Registration | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' |
Preferred stock, shares authorized | 200,000 | 200,000 | ' | 200,000 | ' | 200,000 | ' | 200,000 | ' |
Preferred stock, shares issued | 0 | 0 | ' | 0 | ' | 0 | ' | ' | ' |
Preferred stock, shares outstanding | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Expense related to qualified affordable housing projects | 100,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' |
Remaining investment in qualified affordable housing projects | $3,100,000 | $3,100,000 | ' | $3,200,000 | ' | $3,400,000 | ' | ' | ' |
Acquisitions_Activity_for_Acqu
Acquisitions (Activity for Acquired Loans) (Details) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Activity for accretable yield includes contractually due interest of acquired loans | ' | ' | ||
Balance at beginning of period | $32,610 | $49,390 | ||
Additions (reductions) | 2,333 | [1] | -1,874 | [1] |
Accretion recognized in interest income | -7,594 | -9,321 | ||
Reclassification from nonaccretable difference | 10,000 | 125 | ||
Balance at end of period | $37,349 | $38,320 | ||
[1] | Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans. |
Acquisitions_Textual_Details
Acquisitions (Textual) (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 10, 2014 | Dec. 07, 2012 | Dec. 07, 2012 | Apr. 30, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | |
Northwestern Bancorp, Inc. [Member] | Northwestern Bancorp, Inc. [Member] | Northwestern Bancorp, Inc. [Member] | Independent Bank [Member] | Independent Bank [Member] | OAK [Member] | OAK [Member] | OAK [Member] | OAK [Member] | ||||
Branches | Core Deposits [Member] | Offices | ||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated purchase price for pending acquisition of Northwestern Bancorp, Inc. | ' | ' | ' | ' | ' | $120,000,000 | ' | ' | ' | ' | ' | ' |
Business Acquisition, Transaction Costs | ' | ' | ' | 700,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' |
Number of branches acquired (branches) | ' | ' | ' | ' | ' | ' | 21 | ' | ' | ' | ' | ' |
Deposits acquired | ' | ' | ' | ' | ' | ' | 404,000,000 | ' | ' | ' | ' | ' |
Loans acquired | ' | ' | ' | ' | ' | ' | 44,000,000 | ' | 627,000,000 | ' | ' | ' |
Acquisition purchase price | ' | ' | ' | ' | ' | ' | 8,100,000 | ' | 83,700,000 | ' | ' | ' |
Premium paid on deposits purchased | ' | ' | ' | ' | ' | ' | 11,500,000 | ' | ' | ' | ' | ' |
Premium paid as a percentage of deposits purchased (percent) | ' | ' | ' | ' | ' | ' | 2.85% | ' | ' | ' | ' | ' |
Discount on loans purchased (percent) | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' |
Goodwill | 120,164,000 | 120,164,000 | 120,164,000 | ' | ' | ' | 6,800,000 | ' | ' | ' | ' | ' |
Intangibles acquired | ' | ' | ' | ' | ' | ' | ' | 5,600,000 | ' | ' | ' | ' |
Service provided by acquiree bank through number of branches | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' |
Assets of acquiree company | ' | ' | ' | ' | ' | ' | ' | ' | 820,000,000 | ' | ' | ' |
Deposits of acquiree company | ' | ' | ' | ' | ' | ' | ' | ' | 693,000,000 | ' | ' | ' |
Brokered deposits of acquiree company | ' | ' | ' | ' | ' | ' | ' | ' | 193,000,000 | ' | ' | ' |
Contractually required principal payments of loan portfolio, acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | 683,000,000 | ' | ' | ' |
Acquired loan portfolio acquisition date fair value | ' | ' | ' | ' | ' | ' | ' | ' | 627,000,000 | ' | ' | ' |
Outstanding contractual principal balance of acquired loan portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 298,000,000 | 320,000,000 | 370,000,000 |
Carrying amount of acquired loan portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 274,000,000 | 295,000,000 | 345,000,000 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | $10,000,000 | $125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_Securities_Summary_
Investment Securities (Summary of Amortized Cost and Fair Value of Available-For-Sale Investment Securities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Available-for-sale Securities | ' | ' | ' |
Investment securities available-for-sale, Amortized Cost | $614,744 | $688,385 | $735,443 |
Investment securities available-for-sale, Unrealized Gains | 4,005 | 3,587 | 4,463 |
Investment securities available-for-sale, Unrealized Losses | 2,774 | 7,402 | 5,854 |
Available-for-sale Securities, Total | 615,975 | 684,570 | 734,052 |
Government sponsored agencies [Member] | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' |
Investment securities available-for-sale, Amortized Cost | 88,503 | 93,895 | 92,239 |
Investment securities available-for-sale, Unrealized Gains | 346 | 250 | 249 |
Investment securities available-for-sale, Unrealized Losses | 141 | 382 | 400 |
Available-for-sale Securities, Total | 88,708 | 93,763 | 92,088 |
State and political subdivisions [Member] | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' |
Investment securities available-for-sale, Amortized Cost | 40,165 | 42,450 | 44,288 |
Investment securities available-for-sale, Unrealized Gains | 1,443 | 1,355 | 1,500 |
Investment securities available-for-sale, Unrealized Losses | 0 | 7 | 8 |
Available-for-sale Securities, Total | 41,608 | 43,798 | 45,780 |
Residential mortgage-backed securities [Member] | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' |
Investment securities available-for-sale, Amortized Cost | 265,673 | 303,495 | 311,425 |
Investment securities available-for-sale, Unrealized Gains | 1,117 | 968 | 1,166 |
Investment securities available-for-sale, Unrealized Losses | 1,422 | 5,097 | 4,219 |
Available-for-sale Securities, Total | 265,368 | 299,366 | 308,372 |
Collateralized Mortgage Obligations [Member] | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' |
Investment securities available-for-sale, Amortized Cost | 154,035 | 182,128 | 221,025 |
Investment securities available-for-sale, Unrealized Gains | 376 | 452 | 463 |
Investment securities available-for-sale, Unrealized Losses | 1,128 | 1,639 | 973 |
Available-for-sale Securities, Total | 153,283 | 180,941 | 220,515 |
Corporate bonds [Member] | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' |
Investment securities available-for-sale, Amortized Cost | 64,979 | 65,028 | 65,077 |
Investment securities available-for-sale, Unrealized Gains | 456 | 499 | 692 |
Investment securities available-for-sale, Unrealized Losses | 83 | 252 | 254 |
Available-for-sale Securities, Total | 65,352 | 65,275 | 65,515 |
Preferred stock [Member] | ' | ' | ' |
Available-for-sale Securities | ' | ' | ' |
Investment securities available-for-sale, Amortized Cost | 1,389 | 1,389 | 1,389 |
Investment securities available-for-sale, Unrealized Gains | 267 | 63 | 393 |
Investment securities available-for-sale, Unrealized Losses | 0 | 25 | 0 |
Available-for-sale Securities, Total | $1,656 | $1,427 | $1,782 |
Investment_Securities_Summary_1
Investment Securities (Summary of Amortized Cost and Fair Value of Held-To-Maturity Investment Securities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Held-to-maturity Securities | ' | ' | ' |
Investment securities held-to-maturity, Amortized Cost | $308,130 | $273,905 | $274,715 |
Investment securities held-to-maturity, Unrealized Gains | 5,885 | 5,462 | 6,113 |
Investment securities held-to-maturity, Unrealized Losses | 10,054 | 11,096 | 9,431 |
Total Held-to-maturity securities, Debt maturities, Fair Value | 303,961 | 268,271 | 271,397 |
State and political subdivisions [Member] | ' | ' | ' |
Held-to-maturity Securities | ' | ' | ' |
Investment securities held-to-maturity, Amortized Cost | 297,630 | 263,405 | 264,215 |
Investment securities held-to-maturity, Unrealized Gains | 5,885 | 5,462 | 6,113 |
Investment securities held-to-maturity, Unrealized Losses | 6,329 | 6,846 | 5,181 |
Total Held-to-maturity securities, Debt maturities, Fair Value | 297,186 | 262,021 | 265,147 |
Trust Preferred Securities [Member] | ' | ' | ' |
Held-to-maturity Securities | ' | ' | ' |
Investment securities held-to-maturity, Amortized Cost | 10,500 | 10,500 | 10,500 |
Investment securities held-to-maturity, Unrealized Gains | 0 | 0 | 0 |
Investment securities held-to-maturity, Unrealized Losses | 3,725 | 4,250 | 4,250 |
Total Held-to-maturity securities, Debt maturities, Fair Value | $6,775 | $6,250 | $6,250 |
Investment_Securities_Maturiti
Investment Securities (Maturities of Debt Securities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Investment Securities Available-for-Sale: | ' | ' | ' |
Due in one year or less, Amortized Cost | $159,350 | ' | ' |
Due after one year through five years, Amortized Cost | 371,009 | ' | ' |
Due after five years through ten years, Amortized Cost | 78,876 | ' | ' |
Due after ten years, Amortized Cost | 4,120 | ' | ' |
Preferred stock, Amortized Cost | 1,389 | ' | ' |
Total Available-for-sale Securities, Debt Maturities, Amortized Cost | 614,744 | ' | ' |
Due in one year or less , Fair Value | 159,511 | ' | ' |
Due after one year through five years, Fair Value | 371,673 | ' | ' |
Due after five years through ten years, Fair Value | 79,101 | ' | ' |
Due after ten years, Fair Value | 4,034 | ' | ' |
Preferred stock, Fair Value | 1,656 | ' | ' |
Total Available-for-sale securities, Debt maturities, Fair Value | 615,975 | ' | ' |
Investment Securities Held-to-Maturity: | ' | ' | ' |
Due in one year or less, Amortized Cost | 34,176 | ' | ' |
Due after one year through five years, Amortized Cost | 132,011 | ' | ' |
Due after five years through ten years, Amortized Cost | 88,674 | ' | ' |
Due after ten years, Amortized Cost | 53,269 | ' | ' |
Total Held-to-maturity securities, Debt maturities, Amortized Cost | 308,130 | 273,905 | 274,715 |
Due in one year or less , Fair Value | 34,260 | ' | ' |
Due after one year through five years, Fair Value | 133,164 | ' | ' |
Due after five years through ten years, Fair Value | 89,653 | ' | ' |
Due after ten years, Fair Value | 46,884 | ' | ' |
Total Held-to-maturity securities, Debt maturities, Fair Value | $303,961 | $268,271 | $271,397 |
Investment_Securities_Summary_2
Investment Securities (Summary of Investment Securities with Gross Unrealized Losses) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Summary of continuous unrealized loss position of securities | ' | ' | ' |
Less Than 12 Months, Fair Value | $156,938 | $548,723 | $559,269 |
Less Than 12 Months, Gross Unrealized Losses | 4,182 | 13,007 | 10,393 |
12 Months or More, Fair Value | 370,668 | 73,865 | 53,844 |
12 Months or More, Gross Unrealized Losses | 8,646 | 5,491 | 4,892 |
Total, Fair Value | 527,606 | 622,588 | 613,113 |
Total, Gross Unrealized Losses | 12,828 | 18,498 | 15,285 |
Government sponsored agencies [Member] | ' | ' | ' |
Summary of continuous unrealized loss position of securities | ' | ' | ' |
Less Than 12 Months, Fair Value | 2,377 | 47,352 | 58,646 |
Less Than 12 Months, Gross Unrealized Losses | 2 | 205 | 400 |
12 Months or More, Fair Value | 44,786 | 14,031 | 0 |
12 Months or More, Gross Unrealized Losses | 139 | 177 | 0 |
Total, Fair Value | 47,163 | 61,383 | 58,646 |
Total, Gross Unrealized Losses | 141 | 382 | 400 |
State and political subdivisions [Member] | ' | ' | ' |
Summary of continuous unrealized loss position of securities | ' | ' | ' |
Less Than 12 Months, Fair Value | 92,279 | 126,345 | 128,062 |
Less Than 12 Months, Gross Unrealized Losses | 4,047 | 6,475 | 4,707 |
12 Months or More, Fair Value | 71,421 | 19,074 | 19,378 |
12 Months or More, Gross Unrealized Losses | 2,282 | 378 | 482 |
Total, Fair Value | 163,700 | 145,419 | 147,440 |
Total, Gross Unrealized Losses | 6,329 | 6,853 | 5,189 |
Residential mortgage-backed securities [Member] | ' | ' | ' |
Summary of continuous unrealized loss position of securities | ' | ' | ' |
Less Than 12 Months, Fair Value | 10,144 | 274,076 | 267,211 |
Less Than 12 Months, Gross Unrealized Losses | 60 | 5,097 | 4,217 |
12 Months or More, Fair Value | 197,042 | 0 | 257 |
12 Months or More, Gross Unrealized Losses | 1,362 | 0 | 2 |
Total, Fair Value | 207,186 | 274,076 | 267,468 |
Total, Gross Unrealized Losses | 1,422 | 5,097 | 4,219 |
Collateralized Mortgage Obligations [Member] | ' | ' | ' |
Summary of continuous unrealized loss position of securities | ' | ' | ' |
Less Than 12 Months, Fair Value | 47,142 | 84,995 | 100,469 |
Less Than 12 Months, Gross Unrealized Losses | 68 | 1,127 | 939 |
12 Months or More, Fair Value | 35,722 | 14,684 | 8,083 |
12 Months or More, Gross Unrealized Losses | 1,060 | 512 | 34 |
Total, Fair Value | 82,864 | 99,679 | 108,552 |
Total, Gross Unrealized Losses | 1,128 | 1,639 | 973 |
Corporate bonds [Member] | ' | ' | ' |
Summary of continuous unrealized loss position of securities | ' | ' | ' |
Less Than 12 Months, Fair Value | 4,996 | 14,931 | 4,881 |
Less Than 12 Months, Gross Unrealized Losses | 5 | 78 | 130 |
12 Months or More, Fair Value | 14,922 | 19,826 | 19,876 |
12 Months or More, Gross Unrealized Losses | 78 | 174 | 124 |
Total, Fair Value | 19,918 | 34,757 | 24,757 |
Total, Gross Unrealized Losses | 83 | 252 | 254 |
Trust Preferred Securities [Member] | ' | ' | ' |
Summary of continuous unrealized loss position of securities | ' | ' | ' |
Less Than 12 Months, Fair Value | 0 | 0 | 0 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 | 0 |
12 Months or More, Fair Value | 6,775 | 6,250 | 6,250 |
12 Months or More, Gross Unrealized Losses | 3,725 | 4,250 | 4,250 |
Total, Fair Value | 6,775 | 6,250 | 6,250 |
Total, Gross Unrealized Losses | 3,725 | 4,250 | 4,250 |
Preferred Stock [Member] | ' | ' | ' |
Summary of continuous unrealized loss position of securities | ' | ' | ' |
Less Than 12 Months, Fair Value | ' | 1,024 | ' |
Less Than 12 Months, Gross Unrealized Losses | ' | 25 | ' |
12 Months or More, Fair Value | ' | 0 | ' |
12 Months or More, Gross Unrealized Losses | ' | 0 | ' |
Total, Fair Value | ' | 1,024 | ' |
Total, Gross Unrealized Losses | ' | $25 | ' |
Investment_Securities_Textual_
Investment Securities (Textual) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Investments, Debt and Equity Securities [Abstract] | ' |
Trust preferred investment securities held to maturity | $10.50 |
Trust preferred investment security of Non Public bank company | 10 |
Interest in Trust preferred investment security | 100.00% |
Remaining trust preferred investment security of Non Public bank company | 0.5 |
Interest in another trust preferred investment security | 10.00% |
Carrying value of trust preferred investment security one | 10 |
Carrying value of trust preferred investment security two | 0.5 |
Fair value of trust preferred investment security one | 6.5 |
Fair value of trust preferred investment security two | 0.3 |
Unrealized loss on trust preferred investment securities | 3.7 |
Unrealized loss on trust preferred securities. | $3.70 |
Loans_Summary_of_Loans_Details
Loans (Summary of Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Summary of loans under portfolio | ' | ' | ' |
Commercial loan | $2,622,872 | $2,518,826 | $2,364,870 |
Consumer loan | 2,275,932 | 2,128,795 | 1,971,001 |
Total loans | 4,898,804 | 4,647,621 | 4,335,871 |
Commercial [Member] | ' | ' | ' |
Summary of loans under portfolio | ' | ' | ' |
Commercial loan | 1,212,383 | 1,176,307 | 1,091,894 |
Real estate commercial [Member] | ' | ' | ' |
Summary of loans under portfolio | ' | ' | ' |
Commercial loan | 1,298,365 | 1,232,658 | 1,172,347 |
Real estate construction [Member] | ' | ' | ' |
Summary of loans under portfolio | ' | ' | ' |
Commercial loan | 101,168 | 89,795 | 73,448 |
Land development [Member] | ' | ' | ' |
Summary of loans under portfolio | ' | ' | ' |
Commercial loan | 10,956 | 20,066 | 27,181 |
Real estate residential [Member] | ' | ' | ' |
Summary of loans under portfolio | ' | ' | ' |
Consumer loan | 970,397 | 960,423 | 898,816 |
Consumer installment [Member] | ' | ' | ' |
Summary of loans under portfolio | ' | ' | ' |
Consumer loan | 744,781 | 644,769 | 577,241 |
Home equity [Member] | ' | ' | ' |
Summary of loans under portfolio | ' | ' | ' |
Consumer loan | $560,754 | $523,603 | $494,944 |
Loans_Summary_of_Recorded_Inve
Loans (Summary of Recorded Investment of Commercial Loans by Risk Rating Categories) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | $2,622,872 | $2,518,826 | $2,364,870 |
Commercial [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 1,212,383 | 1,176,307 | 1,091,894 |
Real estate commercial [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 1,298,365 | 1,232,658 | 1,172,347 |
Real estate construction [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 101,168 | 89,795 | 73,448 |
Land development [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 10,956 | 20,066 | 27,181 |
Originated Portfolio [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 2,388,303 | 2,268,619 | 2,070,290 |
Originated Portfolio [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 2,218,823 | 2,098,995 | 1,886,835 |
Originated Portfolio [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 47,143 | 55,953 | 70,990 |
Originated Portfolio [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 75,859 | 64,019 | 69,298 |
Originated Portfolio [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 46,251 | 48,674 | 41,358 |
Originated Portfolio [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 227 | 978 | 1,809 |
Originated Portfolio [Member] | Commercial [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 1,138,523 | 1,092,693 | 986,910 |
Originated Portfolio [Member] | Commercial [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 1,067,000 | 1,024,461 | 919,985 |
Originated Portfolio [Member] | Commercial [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 15,459 | 20,082 | 26,848 |
Originated Portfolio [Member] | Commercial [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 37,291 | 29,776 | 29,025 |
Originated Portfolio [Member] | Commercial [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 18,560 | 17,414 | 9,693 |
Originated Portfolio [Member] | Commercial [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 213 | 960 | 1,359 |
Originated Portfolio [Member] | Real estate commercial [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 1,154,915 | 1,085,187 | 1,003,572 |
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 1,063,555 | 991,964 | 897,960 |
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 30,053 | 34,248 | 43,650 |
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 35,946 | 30,377 | 33,464 |
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 25,347 | 28,580 | 28,048 |
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 14 | 18 | 450 |
Originated Portfolio [Member] | Real estate construction [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 88,575 | 77,459 | 60,874 |
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 85,754 | 75,696 | 59,575 |
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 666 | 654 | 58 |
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 1,995 | 738 | 1,058 |
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 160 | 371 | 183 |
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Originated Portfolio [Member] | Land development [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 6,290 | 13,280 | 18,934 |
Originated Portfolio [Member] | Land development [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 2,514 | 6,874 | 9,315 |
Originated Portfolio [Member] | Land development [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 965 | 969 | 434 |
Originated Portfolio [Member] | Land development [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 627 | 3,128 | 5,751 |
Originated Portfolio [Member] | Land development [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 2,184 | 2,309 | 3,434 |
Originated Portfolio [Member] | Land development [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 234,569 | 250,207 | 294,580 |
Acquired Portfolio [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 208,030 | 224,419 | 271,403 |
Acquired Portfolio [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 10,591 | 10,494 | 8,011 |
Acquired Portfolio [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 10,070 | 8,644 | 9,419 |
Acquired Portfolio [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 5,878 | 6,650 | 5,747 |
Acquired Portfolio [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Commercial [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 73,860 | 83,614 | 104,984 |
Acquired Portfolio [Member] | Commercial [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 59,993 | 73,763 | 100,241 |
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 6,769 | 5,472 | 2,315 |
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 3,197 | 852 | 699 |
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 3,901 | 3,527 | 1,729 |
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate commercial [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 143,450 | 147,471 | 168,775 |
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 132,898 | 133,653 | 152,906 |
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 3,822 | 5,022 | 5,696 |
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 6,730 | 7,792 | 8,720 |
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 1,004 | 1,453 |
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate construction [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 12,593 | 12,336 | 12,574 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 12,593 | 12,336 | 12,574 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Land development [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 4,666 | 6,786 | 8,247 |
Acquired Portfolio [Member] | Land development [Member] | Risk Grades 1-5 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 2,546 | 4,667 | 5,682 |
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 6 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 7 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 143 | 0 | 0 |
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 8 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | 1,977 | 2,119 | 2,565 |
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 9 [Member] | ' | ' | ' |
Recorded investment of loans in commercial loan portfolio by risk rating categories | ' | ' | ' |
Recorded investment (loan balance), Commercial, Total | $0 | $0 | $0 |
Loans_Summary_of_Recorded_Inve1
Loans (Summary of Recorded Investment of Consumer Loans by Risk Rating Categories) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | $2,275,932 | $2,128,795 | $1,971,001 |
Real estate residential [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 970,397 | 960,423 | 898,816 |
Consumer installment [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 744,781 | 644,769 | 577,241 |
Home equity [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 560,754 | 523,603 | 494,944 |
Originated Loans [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 2,236,106 | 2,084,305 | 1,920,343 |
Originated Loans [Member] | Real estate residential [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 959,985 | 948,881 | 886,194 |
Originated Loans [Member] | Consumer installment [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 743,657 | 643,046 | 574,906 |
Originated Loans [Member] | Home equity [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 532,464 | 492,378 | 459,243 |
Originated Loans [Member] | Performing [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 2,219,982 | 2,066,113 | 1,903,387 |
Originated Loans [Member] | Performing [Member] | Real estate residential [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 947,768 | 934,747 | 873,543 |
Originated Loans [Member] | Performing [Member] | Consumer installment [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 743,121 | 642,370 | 574,354 |
Originated Loans [Member] | Performing [Member] | Home equity [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 529,093 | 488,996 | 455,490 |
Originated Loans [Member] | Nonperforming [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 16,124 | 18,192 | 16,956 |
Originated Loans [Member] | Nonperforming [Member] | Real estate residential [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 12,217 | 14,134 | 12,651 |
Originated Loans [Member] | Nonperforming [Member] | Consumer installment [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 536 | 676 | 552 |
Originated Loans [Member] | Nonperforming [Member] | Home equity [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 3,371 | 3,382 | 3,753 |
Acquired Loans [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 39,826 | 44,490 | 50,658 |
Acquired Loans [Member] | Real estate residential [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 10,412 | 11,542 | 12,622 |
Acquired Loans [Member] | Consumer installment [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 1,124 | 1,723 | 2,335 |
Acquired Loans [Member] | Home equity [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 28,290 | 31,225 | 35,701 |
Acquired Loans [Member] | Performing [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 39,694 | 44,386 | 50,540 |
Acquired Loans [Member] | Performing [Member] | Real estate residential [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 10,343 | 11,481 | 12,622 |
Acquired Loans [Member] | Performing [Member] | Consumer installment [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 1,124 | 1,723 | 2,335 |
Acquired Loans [Member] | Performing [Member] | Home equity [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 28,227 | 31,182 | 35,583 |
Acquired Loans [Member] | Nonperforming [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 132 | 104 | 118 |
Acquired Loans [Member] | Nonperforming [Member] | Real estate residential [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 69 | 61 | 0 |
Acquired Loans [Member] | Nonperforming [Member] | Consumer installment [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | 0 | 0 | 0 |
Acquired Loans [Member] | Nonperforming [Member] | Home equity [Member] | ' | ' | ' |
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | ' | ' | ' |
Recorded investment (loan balance), Consumer, Total | $63 | $43 | $118 |
Loans_Summary_of_Nonperforming
Loans (Summary of Nonperforming Loans) (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Summary of nonperforming loans | ' | ' | ' |
Total TDRs | $104,383 | $94,943 | $95,099 |
Total loans | 4,898,804 | 4,647,621 | 4,335,871 |
Minimum number of days accruing loans past due move to nonaccrual status | '90 days | ' | ' |
Commercial Loan Portfolio [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total TDRs | 80,696 | 72,214 | 72,315 |
Total loans | 2,622,872 | 2,518,826 | 2,364,870 |
Consumer Loan Portfolio [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total TDRs | 23,687 | 22,729 | 22,784 |
Total loans | 2,275,932 | 2,128,795 | 1,971,001 |
Nonperforming [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total nonaccrual loans | 55,635 | 61,897 | 56,024 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 1,535 | 1,997 | 932 |
Total TDRs | 16,565 | 18,090 | 22,386 |
Total loans | 73,735 | 81,984 | 79,342 |
Nonperforming [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total TDRs | 11,049 | 13,414 | 19,140 |
Nonperforming [Member] | Consumer Loan Portfolio [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total TDRs | 5,516 | 4,676 | 3,246 |
Nonperforming [Member] | Commercial [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total nonaccrual loans | 18,773 | 18,374 | 11,052 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 15 | 536 | 1 |
Nonperforming [Member] | Real estate commercial [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total nonaccrual loans | 25,361 | 28,598 | 28,498 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 69 | 190 | 78 |
Nonperforming [Member] | Real Estate Construction Loans [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total nonaccrual loans | 160 | 371 | 183 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 | 0 |
Nonperforming [Member] | Land Development Loans [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total nonaccrual loans | 2,184 | 2,309 | 3,434 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 | 0 |
Nonperforming [Member] | Real estate residential [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total nonaccrual loans | 6,325 | 8,921 | 9,241 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 376 | 537 | 164 |
Nonperforming [Member] | Consumer Installment Loans [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total nonaccrual loans | 536 | 676 | 552 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 | 0 |
Nonperforming [Member] | Home Equity Loans [Member] | ' | ' | ' |
Summary of nonperforming loans | ' | ' | ' |
Total nonaccrual loans | 2,296 | 2,648 | 3,064 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | $1,075 | $734 | $689 |
Loans_Summary_of_Impaired_Loan
Loans (Summary of Impaired Loans by Classes of Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Impaired loans with a valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | $27,627 | $22,501 | $32,836 |
Unpaid Principal Balance | 29,216 | 23,029 | 36,058 |
Related Valuation Allowance | 1,719 | 1,591 | 4,434 |
Impaired loans with no valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 99,153 | 106,844 | 86,631 |
Unpaid Principal Balance | 119,489 | 130,361 | 107,050 |
Related Valuation Allowance | 0 | 0 | 0 |
Total Impaired Loans [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 126,780 | 129,345 | 119,467 |
Unpaid Principal Balance | 148,705 | 153,390 | 143,108 |
Related Valuation Allowance | 1,719 | 1,591 | 4,434 |
Commercial [Member] | Impaired loans with a valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 2,905 | 2,517 | 4,569 |
Unpaid Principal Balance | 3,258 | 2,656 | 5,618 |
Related Valuation Allowance | 563 | 728 | 1,610 |
Commercial [Member] | Impaired loans with no valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 39,420 | 38,838 | 21,969 |
Unpaid Principal Balance | 43,463 | 44,377 | 25,934 |
Related Valuation Allowance | 0 | 0 | 0 |
Commercial [Member] | Total Impaired Loans [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 42,325 | 41,355 | 26,538 |
Unpaid Principal Balance | 46,721 | 47,033 | 31,552 |
Related Valuation Allowance | 563 | 728 | 1,610 |
Real estate commercial [Member] | Impaired loans with a valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 4,369 | 2,576 | 8,822 |
Unpaid Principal Balance | 5,605 | 2,965 | 10,162 |
Related Valuation Allowance | 777 | 353 | 2,112 |
Real estate commercial [Member] | Impaired loans with no valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 46,205 | 48,220 | 42,913 |
Unpaid Principal Balance | 58,997 | 61,444 | 56,117 |
Related Valuation Allowance | 0 | 0 | 0 |
Real estate commercial [Member] | Total Impaired Loans [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 50,574 | 50,796 | 51,735 |
Unpaid Principal Balance | 64,602 | 64,409 | 66,279 |
Related Valuation Allowance | 777 | 353 | 2,112 |
Real estate construction [Member] | Impaired loans with a valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Valuation Allowance | 0 | 0 | 0 |
Real estate construction [Member] | Impaired loans with no valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 160 | 371 | 397 |
Unpaid Principal Balance | 366 | 478 | 467 |
Related Valuation Allowance | 0 | 0 | 0 |
Real estate construction [Member] | Total Impaired Loans [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 160 | 371 | 397 |
Unpaid Principal Balance | 366 | 478 | 467 |
Related Valuation Allowance | 0 | 0 | 0 |
Land development [Member] | Impaired loans with a valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 0 | 0 | 2,039 |
Unpaid Principal Balance | 0 | 0 | 2,872 |
Related Valuation Allowance | 0 | 0 | 130 |
Land development [Member] | Impaired loans with no valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 4,211 | 7,170 | 8,495 |
Unpaid Principal Balance | 7,506 | 11,817 | 11,675 |
Related Valuation Allowance | 0 | 0 | 0 |
Land development [Member] | Total Impaired Loans [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 4,211 | 7,170 | 10,534 |
Unpaid Principal Balance | 7,506 | 11,817 | 14,547 |
Related Valuation Allowance | 0 | 0 | 130 |
Real estate residential [Member] | Impaired loans with a valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 20,353 | 17,408 | 17,406 |
Unpaid Principal Balance | 20,353 | 17,408 | 17,406 |
Related Valuation Allowance | 379 | 510 | 582 |
Real estate residential [Member] | Impaired loans with no valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 6,325 | 8,921 | 9,241 |
Unpaid Principal Balance | 6,325 | 8,921 | 9,241 |
Related Valuation Allowance | 0 | 0 | 0 |
Real estate residential [Member] | Total Impaired Loans [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 26,678 | 26,329 | 26,647 |
Unpaid Principal Balance | 26,678 | 26,329 | 26,647 |
Related Valuation Allowance | 379 | 510 | 582 |
Consumer installment [Member] | Impaired loans with no valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 536 | 676 | 552 |
Unpaid Principal Balance | 536 | 676 | 552 |
Related Valuation Allowance | 0 | 0 | 0 |
Consumer installment [Member] | Total Impaired Loans [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 536 | 676 | 552 |
Unpaid Principal Balance | 536 | 676 | 552 |
Related Valuation Allowance | 0 | 0 | 0 |
Home equity [Member] | Impaired loans with no valuation allowance [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 2,296 | 2,648 | 3,064 |
Unpaid Principal Balance | 2,296 | 2,648 | 3,064 |
Related Valuation Allowance | 0 | 0 | 0 |
Home equity [Member] | Total Impaired Loans [Member] | ' | ' | ' |
Schedule of Impaired loans by classes | ' | ' | ' |
Recorded Investment | 2,296 | 2,648 | 3,064 |
Unpaid Principal Balance | 2,296 | 2,648 | 3,064 |
Related Valuation Allowance | $0 | $0 | $0 |
Loans_Summary_of_Information_R
Loans (Summary of Information Related to Impaired Loans) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule representing information related to impaired loans | ' | ' | ' | ' |
Average recorded investment related to impaired loans | $127,956 | $121,855 | $128,707 | $124,715 |
Interest income recognized related to loans with impaired status | 1,075 | 1,005 | 2,109 | 1,874 |
Commercial [Member] | ' | ' | ' | ' |
Schedule representing information related to impaired loans | ' | ' | ' | ' |
Average recorded investment related to impaired loans | 42,629 | 26,704 | 42,118 | 26,828 |
Interest income recognized related to loans with impaired status | 347 | 225 | 680 | 418 |
Real estate commercial [Member] | ' | ' | ' | ' |
Schedule representing information related to impaired loans | ' | ' | ' | ' |
Average recorded investment related to impaired loans | 51,260 | 53,434 | 52,290 | 55,090 |
Interest income recognized related to loans with impaired status | 366 | 412 | 727 | 700 |
Real estate construction [Member] | ' | ' | ' | ' |
Schedule representing information related to impaired loans | ' | ' | ' | ' |
Average recorded investment related to impaired loans | 163 | 410 | 165 | 386 |
Interest income recognized related to loans with impaired status | 0 | 3 | 0 | 5 |
Land development [Member] | ' | ' | ' | ' |
Schedule representing information related to impaired loans | ' | ' | ' | ' |
Average recorded investment related to impaired loans | 4,312 | 10,879 | 4,478 | 10,897 |
Interest income recognized related to loans with impaired status | 34 | 91 | 71 | 182 |
Real estate residential [Member] | ' | ' | ' | ' |
Schedule representing information related to impaired loans | ' | ' | ' | ' |
Average recorded investment related to impaired loans | 26,737 | 26,903 | 26,758 | 27,911 |
Interest income recognized related to loans with impaired status | 328 | 274 | 631 | 569 |
Consumer installment [Member] | ' | ' | ' | ' |
Schedule representing information related to impaired loans | ' | ' | ' | ' |
Average recorded investment related to impaired loans | 634 | 647 | 704 | 683 |
Interest income recognized related to loans with impaired status | 0 | 0 | 0 | 0 |
Home equity [Member] | ' | ' | ' | ' |
Schedule representing information related to impaired loans | ' | ' | ' | ' |
Average recorded investment related to impaired loans | 2,221 | 2,878 | 2,194 | 2,920 |
Interest income recognized related to loans with impaired status | $0 | $0 | $0 | $0 |
Loans_Summary_of_the_Aging_Sta
Loans (Summary of the Aging Status of the Recorded Investment in Loans by Portfolio Segment/Class) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Originated Portfolio [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | $17,112 | $19,581 | $22,528 |
Financing receivable, recorded investment 61 to 89 days past due | 3,432 | 7,316 | 7,000 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,535 | 1,997 | 932 |
Financing receivable, recorded investment, Nonaccrual loans | 55,635 | 61,897 | 56,024 |
Financing receivable recorded investment, Total past due | 77,714 | 90,791 | 86,484 |
Financing receivable, recorded investment, current | 4,546,695 | 4,262,133 | 3,904,149 |
Financing receivable, recorded investment, Total loans | 4,624,409 | 4,352,924 | 3,990,633 |
Originated Portfolio [Member] | Commercial [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 4,149 | 4,748 | 6,572 |
Financing receivable, recorded investment 61 to 89 days past due | 1,901 | 865 | 2,251 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 15 | 536 | 1 |
Financing receivable, recorded investment, Nonaccrual loans | 18,773 | 18,374 | 11,052 |
Financing receivable recorded investment, Total past due | 24,838 | 24,523 | 19,876 |
Financing receivable, recorded investment, current | 1,113,685 | 1,068,170 | 967,034 |
Financing receivable, recorded investment, Total loans | 1,138,523 | 1,092,693 | 986,910 |
Originated Portfolio [Member] | Real estate commercial [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 5,933 | 8,560 | 9,001 |
Financing receivable, recorded investment 61 to 89 days past due | 233 | 1,604 | 3,974 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 69 | 190 | 78 |
Financing receivable, recorded investment, Nonaccrual loans | 25,361 | 28,598 | 28,498 |
Financing receivable recorded investment, Total past due | 31,596 | 38,952 | 41,551 |
Financing receivable, recorded investment, current | 1,123,319 | 1,046,235 | 962,021 |
Financing receivable, recorded investment, Total loans | 1,154,915 | 1,085,187 | 1,003,572 |
Originated Portfolio [Member] | Real estate construction [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 4,107 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 160 | 371 | 183 |
Financing receivable recorded investment, Total past due | 160 | 4,478 | 183 |
Financing receivable, recorded investment, current | 88,415 | 72,981 | 60,691 |
Financing receivable, recorded investment, Total loans | 88,575 | 77,459 | 60,874 |
Originated Portfolio [Member] | Land development [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 2,184 | 2,309 | 3,434 |
Financing receivable recorded investment, Total past due | 2,184 | 2,309 | 3,434 |
Financing receivable, recorded investment, current | 4,106 | 10,971 | 15,500 |
Financing receivable, recorded investment, Total loans | 6,290 | 13,280 | 18,934 |
Originated Portfolio [Member] | Real estate residential [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 2,515 | 2,191 | 2,871 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 103 | 67 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 376 | 537 | 164 |
Financing receivable, recorded investment, Nonaccrual loans | 6,325 | 8,921 | 9,241 |
Financing receivable recorded investment, Total past due | 9,216 | 11,752 | 12,343 |
Financing receivable, recorded investment, current | 950,769 | 937,129 | 873,851 |
Financing receivable, recorded investment, Total loans | 959,985 | 948,881 | 886,194 |
Originated Portfolio [Member] | Consumer installment [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 2,513 | 2,630 | 2,564 |
Financing receivable, recorded investment 61 to 89 days past due | 313 | 359 | 359 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 536 | 676 | 552 |
Financing receivable recorded investment, Total past due | 3,362 | 3,665 | 3,475 |
Financing receivable, recorded investment, current | 740,295 | 639,381 | 571,431 |
Financing receivable, recorded investment, Total loans | 743,657 | 643,046 | 574,906 |
Originated Portfolio [Member] | Home equity [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 2,002 | 1,452 | 1,520 |
Financing receivable, recorded investment 61 to 89 days past due | 985 | 278 | 349 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,075 | 734 | 689 |
Financing receivable, recorded investment, Nonaccrual loans | 2,296 | 2,648 | 3,064 |
Financing receivable recorded investment, Total past due | 6,358 | 5,112 | 5,622 |
Financing receivable, recorded investment, current | 526,106 | 487,266 | 453,621 |
Financing receivable, recorded investment, Total loans | 532,464 | 492,378 | 459,243 |
Acquired Portfolio [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 345 | 397 | 2,578 |
Financing receivable, recorded investment 61 to 89 days past due | 49 | 184 | 78 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 10,447 | 9,787 | 8,400 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 10,841 | 10,368 | 11,056 |
Financing receivable, recorded investment, current | 263,554 | 284,329 | 334,182 |
Financing receivable, recorded investment, Total loans | 274,395 | 294,697 | 345,238 |
Acquired Portfolio [Member] | Commercial [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 6,744 | 5,656 | 2,328 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 6,744 | 5,656 | 2,328 |
Financing receivable, recorded investment, current | 67,116 | 77,958 | 102,656 |
Financing receivable, recorded investment, Total loans | 73,860 | 83,614 | 104,984 |
Acquired Portfolio [Member] | Real estate commercial [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 133 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,594 | 1,695 | 3,389 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 1,594 | 1,828 | 3,389 |
Financing receivable, recorded investment, current | 141,856 | 145,643 | 165,386 |
Financing receivable, recorded investment, Total loans | 143,450 | 147,471 | 168,775 |
Acquired Portfolio [Member] | Real estate construction [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 0 | 0 | 0 |
Financing receivable, recorded investment, current | 12,593 | 12,336 | 12,574 |
Financing receivable, recorded investment, Total loans | 12,593 | 12,336 | 12,574 |
Acquired Portfolio [Member] | Land development [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 2,080 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,977 | 2,332 | 2,564 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 1,977 | 2,332 | 4,644 |
Financing receivable, recorded investment, current | 2,689 | 4,454 | 3,603 |
Financing receivable, recorded investment, Total loans | 4,666 | 6,786 | 8,247 |
Acquired Portfolio [Member] | Real estate residential [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 198 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 78 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 69 | 61 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 69 | 61 | 276 |
Financing receivable, recorded investment, current | 10,343 | 11,481 | 12,346 |
Financing receivable, recorded investment, Total loans | 10,412 | 11,542 | 12,622 |
Acquired Portfolio [Member] | Consumer installment [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 20 | 3 | 3 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 51 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 20 | 54 | 3 |
Financing receivable, recorded investment, current | 1,104 | 1,669 | 2,332 |
Financing receivable, recorded investment, Total loans | 1,124 | 1,723 | 2,335 |
Acquired Portfolio [Member] | Home equity [Member] | ' | ' | ' |
Schedule representing the aging status of the recorded investment in loans by classes | ' | ' | ' |
Financing receivable, recorded investment 31 to 60 days past due | 325 | 394 | 297 |
Financing receivable, recorded investment 61 to 89 days past due | 49 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 63 | 43 | 119 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 437 | 437 | 416 |
Financing receivable, recorded investment, current | 27,853 | 30,788 | 35,285 |
Financing receivable, recorded investment, Total loans | $28,290 | $31,225 | $35,701 |
Loans_Summary_of_TDRs_Details
Loans (Summary of TDRs) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | $104,383 | $94,943 | $95,099 |
Commercial Loan Portfolio [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 80,696 | 72,214 | 72,315 |
Consumer Loan Portfolio [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 23,687 | 22,729 | 22,784 |
Performing [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 44,133 | 39,571 | 32,657 |
Performing [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 29,296 | 26,839 | 18,497 |
Performing [Member] | Consumer Loan Portfolio [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 14,837 | 12,732 | 14,160 |
Nonperforming [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 16,565 | 18,090 | 22,386 |
Nonperforming [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 11,049 | 13,414 | 19,140 |
Nonperforming [Member] | Consumer Loan Portfolio [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 5,516 | 4,676 | 3,246 |
Substandard Nonaccrual [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 43,685 | 37,282 | 40,056 |
Substandard Nonaccrual [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | 40,351 | 31,961 | 34,678 |
Substandard Nonaccrual [Member] | Consumer Loan Portfolio [Member] | ' | ' | ' |
Schedule of corporation's TDRs | ' | ' | ' |
Total TDRs | $3,334 | $5,321 | $5,378 |
Loans_Summary_of_TDRs_Modified
Loans (Summary of TDRs Modified During the Period) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Loans | Loans | Loans | Loans | |
Schedule providing information on TDRs | ' | ' | ' | ' |
Modified TDRs, Number of loans | 90 | 39 | 142 | 86 |
Modified TDRs, Pre-modification recorded investment | $8,358 | $9,063 | $20,563 | $16,500 |
Modified TDRs, Post-modification recorded investment | 8,357 | 9,043 | 20,553 | 16,444 |
Subtotal-commercial loan portfolio [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Schedule providing information on TDRs | ' | ' | ' | ' |
Modified TDRs, Number of loans | 27 | 20 | 49 | 49 |
Modified TDRs, Pre-modification recorded investment | 6,709 | 8,298 | 17,927 | 14,344 |
Modified TDRs, Post-modification recorded investment | 6,709 | 8,298 | 17,927 | 14,344 |
Consumer loan portfolio [Member] | Consumer Portfolio Segment [Member] | ' | ' | ' | ' |
Schedule providing information on TDRs | ' | ' | ' | ' |
Modified TDRs, Number of loans | 63 | 19 | 93 | 37 |
Modified TDRs, Pre-modification recorded investment | 1,649 | 765 | 2,636 | 2,156 |
Modified TDRs, Post-modification recorded investment | 1,648 | 745 | 2,626 | 2,100 |
Commercial [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Schedule providing information on TDRs | ' | ' | ' | ' |
Modified TDRs, Number of loans | 15 | 8 | 27 | 19 |
Modified TDRs, Pre-modification recorded investment | 3,575 | 2,753 | 11,931 | 4,359 |
Modified TDRs, Post-modification recorded investment | 3,575 | 2,753 | 11,931 | 4,359 |
Real estate commercial [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Schedule providing information on TDRs | ' | ' | ' | ' |
Modified TDRs, Number of loans | 12 | 10 | 21 | 24 |
Modified TDRs, Pre-modification recorded investment | 3,134 | 4,019 | 5,924 | 7,663 |
Modified TDRs, Post-modification recorded investment | 3,134 | 4,019 | 5,924 | 7,663 |
Real Estate Construction Loans [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Schedule providing information on TDRs | ' | ' | ' | ' |
Modified TDRs, Number of loans | ' | 0 | ' | 2 |
Modified TDRs, Pre-modification recorded investment | ' | 0 | ' | 364 |
Modified TDRs, Post-modification recorded investment | ' | 0 | ' | 364 |
Land development [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Schedule providing information on TDRs | ' | ' | ' | ' |
Modified TDRs, Number of loans | 0 | 2 | 1 | 4 |
Modified TDRs, Pre-modification recorded investment | 0 | 1,526 | 72 | 1,958 |
Modified TDRs, Post-modification recorded investment | $0 | $1,526 | $72 | ' |
Loans_Summary_of_TDRs_with_a_P
Loans (Summary of TDRs with a Payment Default During the Period) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Loans | Loans | Loans | Loans | |
Troubled debt restructurings on financing receivables with defaults payment | ' | ' | ' | ' |
Financing receivable modifications subsequent default number of contract | 11 | 6 | 14 | 30 |
Financing receivable modification subsequent default recorded investment | $1,454 | $1,545 | $3,228 | $3,368 |
Consumer Portfolio Segment [Member] | ' | ' | ' | ' |
Troubled debt restructurings on financing receivables with defaults payment | ' | ' | ' | ' |
Financing receivable modifications subsequent default number of contract | 3 | 4 | 3 | 9 |
Financing receivable modification subsequent default recorded investment | 80 | 19 | 80 | 503 |
Commercial [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Troubled debt restructurings on financing receivables with defaults payment | ' | ' | ' | ' |
Financing receivable modifications subsequent default number of contract | 5 | 0 | 6 | 17 |
Financing receivable modification subsequent default recorded investment | 771 | 0 | 875 | 1,053 |
Real estate commercial [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Troubled debt restructurings on financing receivables with defaults payment | ' | ' | ' | ' |
Financing receivable modifications subsequent default number of contract | 3 | 0 | 5 | 1 |
Financing receivable modification subsequent default recorded investment | 603 | 0 | 2,273 | 126 |
Real Estate Construction Loans [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Troubled debt restructurings on financing receivables with defaults payment | ' | ' | ' | ' |
Financing receivable modifications subsequent default number of contract | ' | 0 | ' | 1 |
Financing receivable modification subsequent default recorded investment | ' | 0 | ' | 160 |
Land Development Loans [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Troubled debt restructurings on financing receivables with defaults payment | ' | ' | ' | ' |
Financing receivable modifications subsequent default number of contract | ' | 2 | ' | 2 |
Financing receivable modification subsequent default recorded investment | ' | 1,526 | ' | 1,526 |
Subtotal-commercial loan portfolio [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' | ' |
Troubled debt restructurings on financing receivables with defaults payment | ' | ' | ' | ' |
Financing receivable modifications subsequent default number of contract | 8 | 2 | 11 | 21 |
Financing receivable modification subsequent default recorded investment | $1,374 | $1,526 | $3,148 | $2,865 |
Loans_Schedule_of_the_Allowanc
Loans (Schedule of the Allowance for Loan Losses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ' | ' | ' | ' | ' |
Beginning balance | $78,473 | $82,834 | $79,072 | $84,491 | ' |
Provision for loan losses | 1,500 | 3,000 | 3,100 | 6,000 | ' |
Charge-offs | -3,375 | -5,361 | -6,847 | -10,835 | ' |
Recoveries | 1,195 | 1,711 | 2,468 | 2,528 | ' |
Ending balance | 77,793 | 82,184 | 77,793 | 82,184 | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Loans individually evaluated for impairment related to allowance for loan losses | 1,719 | 4,434 | 1,719 | 4,434 | 1,591 |
Loans collectively evaluated for impairment related to allowance for loan losses | 75,574 | 77,250 | 75,574 | 77,250 | 76,981 |
Loans acquired with deteriorated credit quality related to allowance for loan losses | 500 | 500 | 500 | 500 | 500 |
Total | 77,793 | 82,184 | 77,793 | 82,184 | ' |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 107,176 | 98,210 | 107,176 | 98,210 | 107,313 |
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 4,517,233 | 3,892,423 | 4,517,233 | 3,892,423 | 4,245,611 |
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 274,395 | 345,238 | 274,395 | 345,238 | 294,697 |
Total loans | 4,898,804 | 4,335,871 | 4,898,804 | 4,335,871 | 4,647,621 |
Commercial Loan Portfolio [Member] | ' | ' | ' | ' | ' |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ' | ' | ' | ' | ' |
Beginning balance | 45,010 | 49,107 | 44,482 | 49,975 | ' |
Provision for loan losses | 439 | 568 | 1,399 | 3,005 | ' |
Charge-offs | -1,814 | -3,221 | -3,023 | -6,737 | ' |
Recoveries | 589 | 1,326 | 1,366 | 1,537 | ' |
Ending balance | 44,224 | 47,780 | 44,224 | 47,780 | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Loans individually evaluated for impairment related to allowance for loan losses | 1,340 | 3,852 | 1,340 | 3,852 | 1,081 |
Loans collectively evaluated for impairment related to allowance for loan losses | 42,884 | 43,928 | 42,884 | 43,928 | 43,401 |
Loans acquired with deteriorated credit quality related to allowance for loan losses | 0 | 0 | 0 | 0 | 0 |
Total | 44,224 | 47,780 | 44,224 | 47,780 | ' |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 86,823 | 80,804 | 86,823 | 80,804 | 89,905 |
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 2,301,480 | 1,989,486 | 2,301,480 | 1,989,486 | 2,178,714 |
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 234,569 | 294,580 | 234,569 | 294,580 | 250,207 |
Total loans | 2,622,872 | 2,364,870 | 2,622,872 | 2,364,870 | 2,518,826 |
Consumer Loan Portfolio [Member] | ' | ' | ' | ' | ' |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ' | ' | ' | ' | ' |
Beginning balance | 29,233 | 28,852 | 30,145 | 29,333 | ' |
Provision for loan losses | 1,287 | 1,648 | 2,142 | 2,519 | ' |
Charge-offs | -1,561 | -2,140 | -3,824 | -4,098 | ' |
Recoveries | 606 | 385 | 1,102 | 991 | ' |
Ending balance | 29,565 | 28,745 | 29,565 | 28,745 | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Loans individually evaluated for impairment related to allowance for loan losses | 379 | 582 | 379 | 582 | 510 |
Loans collectively evaluated for impairment related to allowance for loan losses | 28,686 | 27,663 | 28,686 | 27,663 | 29,135 |
Loans acquired with deteriorated credit quality related to allowance for loan losses | 500 | 500 | 500 | 500 | 500 |
Total | 29,565 | 28,745 | 29,565 | 28,745 | ' |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 20,353 | 17,406 | 20,353 | 17,406 | 17,408 |
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 2,215,753 | 1,902,937 | 2,215,753 | 1,902,937 | 2,066,897 |
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 39,826 | 50,658 | 39,826 | 50,658 | 44,490 |
Total loans | 2,275,932 | 1,971,001 | 2,275,932 | 1,971,001 | 2,128,795 |
Unallocated [Member] | ' | ' | ' | ' | ' |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ' | ' | ' | ' | ' |
Beginning balance | 4,230 | 4,875 | 4,445 | 5,183 | ' |
Provision for loan losses | -226 | 784 | -441 | 476 | ' |
Charge-offs | 0 | 0 | 0 | 0 | ' |
Recoveries | 0 | 0 | 0 | 0 | ' |
Ending balance | 4,004 | 5,659 | 4,004 | 5,659 | ' |
Allowance for loan losses | ' | ' | ' | ' | ' |
Loans individually evaluated for impairment related to allowance for loan losses | 0 | 0 | 0 | 0 | 0 |
Loans collectively evaluated for impairment related to allowance for loan losses | 4,004 | 5,659 | 4,004 | 5,659 | 4,445 |
Loans acquired with deteriorated credit quality related to allowance for loan losses | 0 | 0 | 0 | 0 | 0 |
Total | 4,004 | 5,659 | 4,004 | 5,659 | ' |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 0 | 0 | 0 | 0 | 0 |
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 0 | 0 | 0 | 0 | 0 |
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 0 | 0 | 0 | 0 | 0 |
Total loans | $0 | $0 | $0 | $0 | $0 |
Loans_Textual_Details
Loans (Textual) (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
BaordOfDirectors | |||
Tenants | |||
Segment | |||
Loans | |||
Loans (Textual) [Abstract] | ' | ' | ' |
Number of portfolio segment | 2 | ' | ' |
Number of classes of loans | 7 | ' | ' |
Number of tenants under lease of real estate | 1 | ' | ' |
Number of members of the board of directors in loan committee | 9 | ' | ' |
Minimum due period of loans consider in a nonperforming status | '90 days | ' | ' |
Total nonaccrual TDR loans | $43,700,000 | $40,100,000 | $37,300,000 |
Difference between recorded investment and unpaid principal balance of loan | 21,900,000 | 23,600,000 | 24,000,000 |
Confirmed losses (partial charge-offs) | 18,200,000 | 20,100,000 | 20,200,000 |
Fair value of discount adjustment | 3,700,000 | 3,500,000 | 3,800,000 |
Acquired impaired loans | 10,400,000 | 8,400,000 | 9,800,000 |
Performing trouble debt restructuring under impaired loans | 44,100,000 | 32,700,000 | 39,600,000 |
Financing receivable allowance for acquired loans | 500,000 | 500,000 | 500,000 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | 10,000,000 | 125,000 | ' |
Commercial Loan Portfolio [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Minimum value of loan requires executive and senior officer approval | 1,500,000 | ' | ' |
Consumer Portfolio Segment [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Maximum due period of loans consider in performing status | '90 days | ' | ' |
Minimum due period of loans consider in a nonperforming status | '90 days | ' | ' |
Commercial [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Minimum value of loan requires group loan authority approval | 1,000,000 | ' | ' |
Maximum value of loan requires executive and senior officer approval | 3,500,000 | ' | ' |
Real Estate Residential Loans [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Period for loan secured under real estate residential security | '15 years | ' | ' |
Loan-to-value ratio at the time of origination | 80.00% | ' | ' |
Land Development Loans [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Maximum period for payment of loan | '12 months | ' | ' |
Maximum [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Maximum value of loan requires group loan authority approval | 5,000,000 | ' | ' |
Other loans requiring director loan committee approval depending on risk rating and credit action required | 5,000,000 | ' | ' |
Maximum [Member] | Real Estate Residential Loans [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Upper limit of number of family residential properties | 4 | ' | ' |
Minimum [Member] | Commercial Loan Portfolio [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Minimum value of loan requires group loan authority approval | 1,000,000 | ' | ' |
Minimum value of loans depending on risk rating and requires credit action from board of directors | 10,000,000 | ' | ' |
Minimum [Member] | Commercial [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Minimum value of loans requiring only director loan committee approval | $5,000,000 | ' | ' |
Minimum [Member] | Real Estate Residential Loans [Member] | ' | ' | ' |
Loans (Textual) [Abstract] | ' | ' | ' |
Lower limit of number of family residential properties | 1 | ' | ' |
Intangible_Assets_Net_Carrying
Intangible Assets (Net Carrying Value) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Net carrying value of intangible assets | ' | ' | ' | ' | ' | ' |
Goodwill | $120,164 | ' | $120,164 | $120,164 | ' | ' |
Other intangible assets: | ' | ' | ' | ' | ' | ' |
Total other intangible assets | 12,454 | ' | 13,424 | 14,354 | ' | ' |
Core deposit intangible assets [Member] | ' | ' | ' | ' | ' | ' |
Other intangible assets: | ' | ' | ' | ' | ' | ' |
Total other intangible assets | 9,110 | ' | 10,001 | 10,933 | ' | ' |
Mortgage servicing rights [Member] | ' | ' | ' | ' | ' | ' |
Other intangible assets: | ' | ' | ' | ' | ' | ' |
Total other intangible assets | $3,344 | $3,316 | $3,423 | $3,421 | $3,485 | $3,478 |
Intangible_Assets_Amortization
Intangible Assets (Amortization Expense of Core Deposit Intangible Assets) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | ' | ' | ' | ' | ' |
Carrying amount | $12,454 | $14,354 | $12,454 | $14,354 | $13,424 |
Amortization of intangible assets | ' | ' | 1,391 | 1,994 | ' |
Core deposit intangible assets [Member] | ' | ' | ' | ' | ' |
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | ' | ' | ' | ' | ' |
Gross original amount | 18,659 | 18,659 | 18,659 | 18,659 | 18,659 |
Accumulated amortization | 9,549 | 7,726 | 9,549 | 7,726 | 8,658 |
Carrying amount | 9,110 | 10,933 | 9,110 | 10,933 | 10,001 |
Amortization of intangible assets | $446 | $484 | $891 | $977 | ' |
Intangible_Assets_Carrying_and
Intangible Assets (Carrying and Fair Value of MSRs) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Net carrying value, fair value of MSRs and loans Corporation servicing for others | ' | ' | ' |
Loans serviced for others that have servicing rights capitalized | $871,158 | $886,730 | $899,823 |
Mortgage servicing rights [Member] | ' | ' | ' |
Net carrying value, fair value of MSRs and loans Corporation servicing for others | ' | ' | ' |
Net carrying value of MSRs | 3,344 | 3,423 | 3,421 |
Fair value of MSRs | $6,433 | $6,878 | $6,417 |
Intangible_Assets_Activity_for
Intangible Assets (Activity for Capitalized MSRs) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Capitalized MSRs [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | $13,424 | ' |
Amortization | ' | ' | -1,391 | -1,994 |
Balance at end of period | 12,454 | 14,354 | 12,454 | 14,354 |
Mortgage servicing rights [Member] | ' | ' | ' | ' |
Capitalized MSRs [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | 3,316 | 3,485 | 3,423 | 3,478 |
Additions | 278 | 445 | 421 | 960 |
Amortization | -250 | -509 | -500 | -1,017 |
Balance at end of period | $3,344 | $3,421 | $3,344 | $3,421 |
Intangible_Assets_Textual_Deta
Intangible Assets (Textual) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Core deposit intangible assets [Member] | ' | ' | ' |
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2014 | $800,000 | ' | ' |
2015 | 1,700,000 | ' | ' |
2016 | 1,500,000 | ' | ' |
2017 | 1,200,000 | ' | ' |
2018 | 1,200,000 | ' | ' |
2019 and thereafter | 2,700,000 | ' | ' |
Mortgage servicing rights [Member] | ' | ' | ' |
Intangible Assets (Textual) [Abstract] | ' | ' | ' |
Impairment valuation allowance | $0 | $0 | $0 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Components of accumulated other comprehensive loss, net of related tax benefit/expense | ' | ' | ' |
Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $431 at June 30, 2014, $(1,335) at December 31, 2013 and $(486) at June 30, 2013 | $800 | ($2,480) | ($905) |
Pension and other postretirement benefits adjustment, net of related tax benefit of $10,117 at June 30, 2014, $9,714 at December 31, 2013 and $18,394 at June 30, 2013 | -18,788 | -18,040 | -34,160 |
Accumulated other comprehensive loss | ($17,988) | ($20,520) | ($35,065) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Textual) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Loss (Textual) [Abstract] | ' | ' | ' |
Net unrealized gains (losses) on investment securities-available-for-sale, tax expense (benefit) | $431 | ($1,335) | ($486) |
Pension and other postretirement benefits adjustment, tax benefit | $10,117 | $9,714 | $18,394 |
Regulatory_Capital_Details
Regulatory Capital (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Risk weighted assets | $4,900,000,000 | $4,640,000,000 | $4,360,000,000 |
Chemical Financial Corporation [Member] | ' | ' | ' |
Total Capital to Risk-Weighted Assets: | ' | ' | ' |
Actual, Capital Amount | 748,332,000 | 649,836,000 | 572,503,000 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 391,911,000 | 371,465,000 | 348,442,000 |
Actual, Ratio | 15.30% | 14.00% | 13.10% |
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | 8.00% |
Tier 1 Capital to Risk-Weighted Assets: | ' | ' | ' |
Actual, Capital Amount | 686,892,000 | 591,535,000 | 517,716,000 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 195,955,000 | 185,732,000 | 174,221,000 |
Actual, Ratio | 14.00% | 12.70% | 11.90% |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | 4.00% |
Leverage Ratio: | ' | ' | ' |
Actual, Capital Amount | 686,892,000 | 591,535,000 | 517,716,000 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 244,757,000 | 239,010,000 | 228,436,000 |
Actual, Ratio | 11.20% | 9.90% | 9.10% |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | 4.00% |
Chemical Bank [Member] | ' | ' | ' |
Total Capital to Risk-Weighted Assets: | ' | ' | ' |
Actual, Capital Amount | 601,561,000 | 579,494,000 | 556,536,000 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 391,305,000 | 370,881,000 | 347,865,000 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | 489,131,000 | 463,601,000 | 434,831,000 |
Actual, Ratio | 12.30% | 12.50% | 12.80% |
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | 8.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | 10.00% | 10.00% |
Tier 1 Capital to Risk-Weighted Assets: | ' | ' | ' |
Actual, Capital Amount | 540,214,000 | 521,283,000 | 501,839,000 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 195,653,000 | 185,440,000 | 173,932,000 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | 293,479,000 | 278,160,000 | 260,899,000 |
Actual, Ratio | 11.00% | 11.20% | 11.50% |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | 4.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 6.00% | 6.00% | 6.00% |
Leverage Ratio: | ' | ' | ' |
Actual, Capital Amount | 540,214,000 | 521,283,000 | 501,839,000 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 244,604,000 | 238,884,000 | 228,126,000 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $305,755,000 | $298,605,000 | $285,157,000 |
Actual, Ratio | 8.80% | 8.70% | 8.80% |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | 4.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% | 5.00% | 5.00% |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Assets on a Recurring Basis) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | $615,975 | $684,570 | $734,052 |
Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 615,975 | 684,570 | 734,052 |
Loans Held-for-sale | 6,329 | 5,219 | 9,180 |
Total assets measured at fair value on a recurring basis | 622,304 | 689,789 | 743,232 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Loans Held-for-sale | 0 | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 615,975 | 684,570 | 734,052 |
Loans Held-for-sale | 6,329 | 5,219 | 9,180 |
Total assets measured at fair value on a recurring basis | 622,304 | 689,789 | 743,232 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Loans Held-for-sale | 0 | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 | 0 |
Government sponsored agencies [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 88,708 | 93,763 | 92,088 |
Government sponsored agencies [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 88,708 | 93,763 | 92,088 |
Government sponsored agencies [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Government sponsored agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 88,708 | 93,763 | 92,088 |
Government sponsored agencies [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
State and political subdivisions [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 41,608 | 43,798 | 45,780 |
State and political subdivisions [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 41,608 | 43,798 | 45,780 |
State and political subdivisions [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
State and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 41,608 | 43,798 | 45,780 |
State and political subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Residential mortgage-backed securities [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 265,368 | 299,366 | 308,372 |
Residential mortgage-backed securities [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 265,368 | 299,366 | 308,372 |
Residential mortgage-backed securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Residential mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 265,368 | 299,366 | 308,372 |
Residential mortgage-backed securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Collateralized mortgage obligations [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 153,283 | 180,941 | 220,515 |
Collateralized mortgage obligations [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 153,283 | 180,941 | 220,515 |
Collateralized mortgage obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Collateralized mortgage obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 153,283 | 180,941 | 220,515 |
Collateralized mortgage obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Corporate bonds [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 65,352 | 65,275 | 65,515 |
Corporate bonds [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 65,352 | 65,275 | 65,515 |
Corporate bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 65,352 | 65,275 | 65,515 |
Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Preferred stock [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 1,656 | 1,427 | 1,782 |
Preferred stock [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 1,656 | 1,427 | 1,782 |
Preferred stock [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 0 | 0 | 0 |
Preferred stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | 1,656 | 1,427 | 1,782 |
Preferred stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | ' | ' | ' |
Summary of assets measured at fair value on a recurring basis | ' | ' | ' |
Available-for-sale, at fair value | $0 | $0 | $0 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value of Assets on a Nonrecurring Basis) (Details) (Fair Value Measurements Nonrecurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | $40,181 | $38,628 | $55,363 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 40,181 | 38,628 | 55,363 |
Impaired originated loans [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 29,789 | 28,852 | 41,704 |
Impaired originated loans [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Impaired originated loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Impaired originated loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 29,789 | 28,852 | 41,704 |
Other real estate/repossessed assets [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 10,392 | 9,776 | 13,659 |
Other real estate/repossessed assets [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Other real estate/repossessed assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Other real estate/repossessed assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' | ' |
Total assets measured at fair value on a nonrecurring basis | $10,392 | $9,776 | $13,659 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule of Carrying Amounts and Estimated Fair Value of Financial Instruments) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Investment securities: | ' | ' | ' |
Available-for-sale | $615,975 | $684,570 | $734,052 |
Held-to-maturity | 303,961 | 268,271 | 271,397 |
Carrying Amount [Member] | ' | ' | ' |
Investment securities: | ' | ' | ' |
Nonmarketable equity securities | 25,572 | 25,572 | 25,572 |
Carrying Amount [Member] | Level 1[Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 140,294 | 310,788 | 206,957 |
Carrying Amount [Member] | Level 2 [Member] | ' | ' | ' |
Investment securities: | ' | ' | ' |
Available-for-sale | 615,975 | 684,570 | 734,052 |
Held-to-maturity | 297,630 | 263,405 | 264,215 |
Loans Held-for-sale | 6,329 | 5,219 | 9,180 |
Interest receivable | 15,827 | 15,748 | 15,844 |
Liabilities: | ' | ' | ' |
Deposits without defined maturities | 3,814,013 | 3,790,454 | 3,434,266 |
Interest payable | 735 | 868 | 1,085 |
Short-term borrowings | 305,422 | 327,428 | 346,995 |
Carrying Amount [Member] | Level 3 [Member] | ' | ' | ' |
Investment securities: | ' | ' | ' |
Held-to-maturity | 10,500 | 10,500 | 10,500 |
Net loans | 4,821,011 | 4,568,549 | 4,253,687 |
Liabilities: | ' | ' | ' |
Time deposits | 1,278,900 | 1,331,931 | 1,379,919 |
Fair Value [Member] | ' | ' | ' |
Investment securities: | ' | ' | ' |
Nonmarketable equity securities | 25,572 | 25,572 | 25,572 |
Fair Value [Member] | Level 1[Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and cash equivalents | 140,294 | 310,788 | 206,957 |
Fair Value [Member] | Level 2 [Member] | ' | ' | ' |
Investment securities: | ' | ' | ' |
Available-for-sale | 615,975 | 684,570 | 734,052 |
Held-to-maturity | 297,186 | 262,021 | 265,147 |
Loans Held-for-sale | 6,329 | 5,219 | 9,180 |
Interest receivable | 15,827 | 15,748 | 15,844 |
Liabilities: | ' | ' | ' |
Deposits without defined maturities | 3,814,013 | 3,790,454 | 3,434,266 |
Interest payable | 735 | 868 | 1,085 |
Short-term borrowings | 305,422 | 327,428 | 346,995 |
Fair Value [Member] | Level 3 [Member] | ' | ' | ' |
Investment securities: | ' | ' | ' |
Held-to-maturity | 6,775 | 6,250 | 6,250 |
Net loans | 4,826,672 | 4,575,532 | 4,260,726 |
Liabilities: | ' | ' | ' |
Time deposits | $1,285,992 | $1,340,746 | $1,390,381 |
Fair_Value_Measurements_Textua
Fair Value Measurements (Textual) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | Core deposit intangible assets [Member] | Core deposit intangible assets [Member] | Core deposit intangible assets [Member] | Maximum [Member] | Minimum [Member] | Total Impaired Loans [Member] | Total Impaired Loans [Member] | Other Real Estate and Repossessed Assets [Member] | Other Real Estate and Repossessed Assets [Member] | Fair Value Measurements Recurring [Member] | Fair Value Measurements Recurring [Member] | Fair Value Measurements Recurring [Member] | Fair Value Measurements Nonrecurring [Member] | Fair Value Measurements Nonrecurring [Member] | Fair Value Measurements Nonrecurring [Member] | |||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | |||||||||||||||
Fair Value Measurements (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities recorded at fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $0 | $0 |
Expected life of intangible assets | ' | ' | ' | ' | ' | ' | '15 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of discount factors used to determine fair value | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | 70.00% | 75.00% | 70.00% | ' | ' | ' | ' | ' | ' |
Impairment of goodwill | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment identified for intangible assets | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator and denominator of the basic and diluted earnings per common share computations | ' | ' | ' | ' |
Numerator for both basic and diluted earnings per common share, net income | $16,236 | $14,203 | $30,049 | $27,437 |
Denominator for basic earnings per common share, weighted average common shares outstanding | 30,068,000 | 27,534,000 | 29,947,000 | 27,527,000 |
Weighted average common stock equivalents | 211,000 | 140,000 | 212,000 | 131,000 |
Denominator for diluted earnings per common share | 30,279,000 | 27,674,000 | 30,159,000 | 27,658,000 |
Basic earnings per common share (dollars per share) | $0.54 | $0.52 | $1 | $1 |
Diluted earnings per common share (dollars per share) | $0.54 | $0.51 | $1 | $0.99 |
Stock Option [Member] | ' | ' | ' | ' |
Earnings Per Common Share (Textual) [Abstract] | ' | ' | ' | ' |
Average number of exercisable employee stock option awards that were not included in the computation of diluted earnings per common share | 249,150 | 367,844 | 252,529 | 412,767 |
ShareBased_Compensation_Stock_
Share-Based Compensation (Stock Option Activity) (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Weighted average fair value of options granted | $9.64 |
Non Vested [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Ending balance, Number of Options | 449,175 |
Vested [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Ending balance, Number of Options | 1,191,643 |
Stock Options [Member] | Non Vested [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Beginning balance, Number of Options | 414,080 |
Exercised, Number of Options | 0 |
Vested, Number of Options | -148,016 |
Forfeited/expired, Number of Options | -6,900 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Beginning balance, Weighted Average Exercise Price | $24.29 |
Granted, Weighted Average Exercise Price | $29.45 |
Exercised, Weighted Average Exercise Price | $0 |
Vested, Weighted Average Exercise Price | $23.43 |
Forfeited/expired, Weighted Average Exercise Price | $24.57 |
Ending balance, Weighted Average Exercise Price | $26.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Beginning balance, Weighted average grant date fair value | $7.19 |
Weighted average fair value of options granted | $9.64 |
Exercised, Weighted Average Grant Date Fair Value | $0 |
Vested, Weighted Average Grant Date Fair Value | $6.98 |
Forfeited/expired, Weighted Average Grant Date Fair Value | $7.26 |
Ending balance, Weighted average grant date fair value | $8.30 |
Stock Options [Member] | Vested [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Beginning balance, Number of Options | 1,073,990 |
Granted, Number of Options | 190,011 |
Exercised, Number of Options | -64,071 |
Vested, Number of Options | 0 |
Forfeited/expired, Number of Options | -8,287 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Beginning balance, Weighted Average Exercise Price | $26.84 |
Granted, Weighted Average Exercise Price | $29.45 |
Exercised, Weighted Average Exercise Price | $24.97 |
Vested, Weighted Average Exercise Price | $0 |
Forfeited/expired, Weighted Average Exercise Price | $26.56 |
Ending balance, Weighted Average Exercise Price | $27.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Exercisable/vested, Number of Options | 742,468 |
Exercisable/vested, Weighted Average Exercise Price | $27.73 |
ShareBased_Compensation_BlackS
Share-Based Compensation (Black-Scholes Pricing Model Assumptions) (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Assumptions of Black-Scholes option pricing model | ' |
Expected dividend yield | 3.00% |
Risk-free interest rate | 2.16% |
Expected stock price volatility | 42.20% |
Expected life of options - in years | '7 years 0 months 0 days |
Weighted average fair value of options granted | $9.64 |
ShareBased_Compensation_Restri
Share-Based Compensation (Restricted Stock Unit Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Number of Shares [Roll Forward] | ' |
Beginning balance, Number of shares | 188,532 |
Granted, Number of shares | 68,253 |
Converted into shares of common stock, Number of shares | -51,224 |
Forfeited/expired, Number of shares | -1,278 |
Ending balance, Number of shares | 204,283 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Grant Date Fair Value [Abstract] | ' |
Beginning balance, Weighted average grant date fair value | $21.49 |
Granted, Weighted Average grant date fair value | $27.49 |
Converted into shares of common stock, Weighted average grant date fair value | $19.12 |
Forfeited/expired, Weighted average grant date fair value | $23.76 |
Ending balance, Weighted average grant date fair value | $24.07 |
Textual_Details
(Textual) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-Based Compensation Plans (Textual) [Abstract] | ' | ' | ' | ' |
Share-based compensation expense | $0.60 | $0.70 | $1.20 | $1.30 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-Based Compensation Plans (Textual) [Abstract] | ' | ' | ' | ' |
Corporation granted options to purchase restricted stock performance units | ' | ' | 68,253 | ' |
Unrecognized compensation expense | 3.1 | ' | 3.1 | ' |
Unrecognized compensation expense, period of recognition | ' | ' | '2 years 8 months 12 days | ' |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ' | ' | ' | ' |
Share-Based Compensation Plans (Textual) [Abstract] | ' | ' | ' | ' |
Restricted stock performance units eligible to vest as a multiple of number of units granted | ' | ' | 1.5 | ' |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ' | ' | ' | ' |
Share-Based Compensation Plans (Textual) [Abstract] | ' | ' | ' | ' |
Restricted stock performance units eligible to vest as a multiple of number of units granted | ' | ' | 0.25 | ' |
Stock Option [Member] | ' | ' | ' | ' |
Share-Based Compensation Plans (Textual) [Abstract] | ' | ' | ' | ' |
Corporation granted options to purchase common stock | ' | ' | 190,011 | ' |
Common stock available for future grants under share-based compensation plans | 420,618 | ' | 420,618 | ' |
Weighted-average remaining contractual terms for outstanding stock options | ' | ' | '5 years 10 months 24 days | ' |
Weighted-average remaining contractual terms for exercisable stock options | ' | ' | '4 years 1 month 6 days | ' |
Outstanding in-the-money stock options, intrinsic value | 3.1 | ' | 3.1 | ' |
Exercisable in-the-money stock options, intrinsic value | 2.3 | ' | 2.3 | ' |
Closing price of common stock | $28.08 | ' | $28.08 | ' |
Unrecognized compensation expense | $3.30 | ' | $3.30 | ' |
Unrecognized compensation expense, period of recognition | ' | ' | '3 years 10 months 24 days | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans (Components of Net Periodic Benefit Cost (Income)) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Pension Plans [Member] | ' | ' | ' | ' |
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | ' | ' | ' | ' |
Service cost | $251 | $325 | $501 | $650 |
Interest cost | 1,312 | 1,167 | 2,624 | 2,334 |
Expected return on plan assets | -2,079 | -1,948 | -4,157 | -3,896 |
Amortization of prior service cost | -1 | -1 | -1 | -1 |
Amortization of unrecognized net loss (gain) | 569 | 946 | 1,138 | 1,892 |
Net periodic benefit cost | 52 | 489 | 105 | 979 |
Postretirement Benefit Plan [Member] | ' | ' | ' | ' |
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | ' | ' | ' | ' |
Service cost | 4 | 4 | 9 | 9 |
Interest cost | 36 | 36 | 71 | 72 |
Amortization of prior service cost | 33 | 153 | 65 | 206 |
Amortization of unrecognized net loss (gain) | -26 | -18 | -52 | -37 |
Net periodic benefit cost | $47 | $175 | $93 | $250 |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefit Plans (Textual) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Contribution to corporation's pension plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Contribution to defined benefit pension plan | ' | ' | ' | $15 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | ' | ' | 5.00% | ' |
Chemical Financial Corporation [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Percentage of eligible pay contribution to certain employees | ' | ' | 4.00% | ' |
Defined Contribution Plan, Employer Total Contribution Amount | $1 | $0.90 | $1.70 | $1.80 |
Financial_Guarantees_Textual_D
Financial Guarantees (Textual) (Details) (Financial Standby Letter of Credit [Member], USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Financial Standby Letter of Credit [Member] | ' | ' | ' |
Financial Guarantees (Textual) [Abstract] | ' | ' | ' |
Letters of credit outstanding | $37 | $47 | $47 |
Expiration period for letters of credit, maximum | '5 years | ' | ' |