Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CHEMICAL FINANCIAL CORP | ||
Entity Central Index Key | 19612 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $896,100,000 | ||
Entity Common Stock, Shares Outstanding | 32,787,654 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and cash equivalents: | |||
Cash and cash due from banks | $144,892,000 | $130,811,000 | |
Interest-bearing deposits with the Federal Reserve Bank and other banks | 38,128,000 | 179,977,000 | |
Total cash and cash equivalents | 183,020,000 | 310,788,000 | 656,135,000 |
Investment securities: | |||
Available-for-sale, at fair value | 748,864,000 | 684,570,000 | |
Held-to-maturity, at amortized cost (fair value - $315,740 at December 31, 2014 and $268,271 at December 31, 2013) | 316,413,000 | 273,905,000 | |
Total investment securities | 1,065,277,000 | 958,475,000 | |
Loans held-for-sale, at fair value | 9,128,000 | 5,219,000 | |
Loans | 5,688,230,000 | 4,647,621,000 | |
Allowance for loan losses | -75,683,000 | -79,072,000 | -84,491,000 |
Net loans | 5,612,547,000 | 4,568,549,000 | |
Premises and equipment | 97,496,000 | 75,308,000 | |
Goodwill | 180,128,000 | 120,164,000 | |
Other intangible assets | 33,080,000 | 13,424,000 | |
Interest receivable and other assets | 141,467,000 | 132,781,000 | |
Total Assets | 7,322,143,000 | 6,184,708,000 | |
Deposits: | |||
Noninterest-bearing | 1,591,661,000 | 1,227,768,000 | |
Interest-bearing | 4,487,310,000 | 3,894,617,000 | |
Total deposits | 6,078,971,000 | 5,122,385,000 | |
Interest payable and other liabilities | 56,572,000 | 38,395,000 | |
Short-term borrowings | 389,467,000 | 327,428,000 | |
Federal Home Loan Bank (FHLB) advances | 34,300,000 | ||
Total liabilities | 6,525,010,000 | 5,488,208,000 | |
Shareholders' equity: | |||
Preferred stock, no par value: | 0 | 0 | |
Issued and outstanding — 32,774,420 shares at December 31, 2014 and 29,789,825 shares at December 31, 2013 | 32,774,000 | 29,790,000 | |
Additional paid in capital | 565,166,000 | 488,177,000 | |
Retained earnings | 231,646,000 | 199,053,000 | |
Accumulated other comprehensive loss | -32,453,000 | -20,520,000 | -31,119,000 |
Total shareholders' equity | 797,133,000 | 696,500,000 | 596,341,000 |
Total Liabilities and Shareholders' Equity | $7,322,143,000 | $6,184,708,000 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Held-to-maturity, fair value | $315,740 | $268,271 |
Preferred stock, no par value | $0 | $0 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common Stock, Shares Issued | 32,774,420 | 29,789,825 |
Common stock, shares outstanding | 32,774,420 | 29,789,825 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income | |||
Interest and fees on loans | $209,429 | $195,590 | $193,193 |
Interest on investment securities: | |||
Taxable | 9,147 | 10,234 | 9,890 |
Tax-exempt | 7,054 | 6,394 | 5,931 |
Dividends on nonmarketable equity securities | 1,224 | 1,105 | 1,041 |
Interest on deposits with the Federal Reserve Bank and other banks | 407 | 738 | 703 |
Total Interest Income | 227,261 | 214,061 | 210,758 |
Interest Expense | |||
Interest on deposits | 14,254 | 16,883 | 21,782 |
Interest on short-term borrowings | 414 | 484 | 426 |
Interest on long-term FHLB advances and subordinated debt | 42 | 47 | 1,005 |
Total Interest Expense | 14,710 | 17,414 | 23,213 |
Net Interest Income | 212,551 | 196,647 | 187,545 |
Provision for loan losses | 6,100 | 11,000 | 18,500 |
Net Interest Income after Provision for Loan Losses | 206,451 | 185,647 | 169,045 |
Noninterest Income | |||
Service charges and fees on deposit accounts | 22,414 | 21,939 | 19,581 |
Wealth management revenue | 16,015 | 13,989 | 11,763 |
Other charges and fees for customer services | 18,578 | 17,151 | 14,227 |
Mortgage banking revenue | 5,041 | 5,336 | 6,597 |
Gain on sale of investment securities | 0 | 1,133 | 34 |
Gain on sale of merchant card services | 400 | 0 | 1,280 |
Other | 647 | 861 | 1,202 |
Total Noninterest Income | 63,095 | 60,409 | 54,684 |
Operating Expenses | |||
Salaries, wages and employee benefits | 104,218 | 96,419 | 84,383 |
Occupancy | 15,842 | 13,934 | 12,413 |
Equipment and software | 15,297 | 13,734 | 13,112 |
Other | 44,568 | 40,861 | 42,013 |
Total Operating Expenses | 179,925 | 164,948 | 151,921 |
Income Before Income Taxes | 89,621 | 81,108 | 71,808 |
Federal income tax expense | 27,500 | 24,300 | 20,800 |
Net Income | $62,121 | $56,808 | $51,008 |
Net Income Per Common Share | |||
Basic | $1.98 | $2.02 | $1.86 |
Diluted | $1.97 | $2 | $1.85 |
Cash Dividends Declared Per Common Share | $0.94 | $0.87 | $0.82 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income | $62,121 | $56,808 | $51,008 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Change in net unrealized gains (losses) on investment securities available-for-sale, net of tax expense (benefit) of $1,222, $(3,325), and $505 for the years ended December 31, 2014, 2013, and 2012, respectively | 2,270 | -6,177 | 938 |
Reclassification adjustment for realized gain on sale of investment securities available-for-sale included in net income, net of tax expense of $311 for the year ended December 31, 2013 | 0 | -577 | 0 |
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense) of $7,648, $(9,344), and $3,623 for the years ended December 31, 2014, 2013, and 2012, respectively | -14,203 | 17,353 | -6,728 |
Total other comprehensive income (loss), net of tax | -11,933 | 10,599 | -5,790 |
Comprehensive Income | $50,188 | $67,407 | $45,218 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $1,222 | ($3,325) | $505 |
Tax expense (benefit) on net unrealized gains (losses) on investment securities available-for-sale | 0 | 311 | 0 |
Tax expense on adjustment for pension and other postretirement benefits | $7,648 | ($9,344) | $3,623 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2011 | $571,729 | $27,457 | $431,277 | $138,324 | ($25,329) |
Changes in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income | 45,218 | 51,008 | -5,790 | ||
Cash dividends declared per share: $0.82 per share in 2012, $0.87 per share in 2013 and $0.94 per share in 2014 | -22,566 | -22,566 | |||
Stock issued - stock options | 20 | 1 | 19 | ||
Shares issued - directors' stock plans | 323 | 16 | 307 | ||
Shares issued b restricted stock performance units | -248 | 25 | -273 | ||
Share-based compensation | 1,865 | 1,865 | |||
Ending Balance at Dec. 31, 2012 | 596,341 | 27,499 | 433,195 | 166,766 | -31,119 |
Changes in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income | 67,407 | 56,808 | 10,599 | ||
Cash dividends declared per share: $0.82 per share in 2012, $0.87 per share in 2013 and $0.94 per share in 2014 | -24,521 | -24,521 | |||
Stock Issued During Period, Value, New Issues | 53,925 | 2,214 | 51,711 | ||
Stock issued - stock options | 568 | 41 | 527 | ||
Shares issued - directors' stock plans | 305 | 13 | 292 | ||
Shares issued b restricted stock performance units | -379 | 23 | -402 | ||
Share-based compensation | 2,854 | 2,854 | |||
Ending Balance at Dec. 31, 2013 | 696,500 | 29,790 | 488,177 | 199,053 | -20,520 |
Changes in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income | 50,188 | 62,121 | -11,933 | ||
Cash dividends declared per share: $0.82 per share in 2012, $0.87 per share in 2013 and $0.94 per share in 2014 | -29,528 | -29,528 | |||
Stock Issued During Period, Value, New Issues | 76,175 | 2,875 | 73,300 | ||
Stock issued - stock options | 931 | 44 | 887 | ||
Shares issued - directors' stock plans | 438 | 18 | 420 | ||
Shares issued b restricted stock performance units | -502 | 37 | -539 | ||
Share-based compensation | 2,931 | 10 | 2,921 | ||
Ending Balance at Dec. 31, 2014 | $797,133 | $32,774 | $565,166 | $231,646 | ($32,453) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends declared per share | $0.24 | $0.24 | $0.23 | $0.23 | $0.23 | $0.22 | $0.21 | $0.21 | $0.94 | $0.87 | $0.82 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities: | |||
Net Income | $62,121 | $56,808 | $51,008 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 6,100 | 11,000 | 18,500 |
Gains on sales of loans | -4,451 | -7,108 | -9,645 |
Proceeds from sales of loans | 153,743 | 218,237 | 314,521 |
Loans originated for sale | -150,795 | -198,683 | -303,723 |
Gain on sale of investment securities | 0 | -1,133 | 0 |
Net gains from sales/writedowns of other real estate and repossessed assets | -1,886 | -2,943 | -1,532 |
Net (gain) loss on disposal of premises and equipment and branch bank properties | 172 | -281 | 0 |
Depreciation of premises and equipment | 8,980 | 8,713 | 8,142 |
Amortization and impairment of intangible assets | 3,545 | 3,492 | 3,969 |
Net amortization of premiums and discounts on investment securities | 4,497 | 4,196 | 4,795 |
Share-based compensation expense | 2,931 | 2,854 | 1,865 |
Deferred income tax | -1,700 | 635 | 12,668 |
Contributions to defined benefit pension plan | 0 | -15,000 | -12,000 |
Net decrease in interest receivable and other assets | 781 | 6,478 | 4,261 |
Net increase in interest payable and other liabilities | 5,893 | 2,414 | 2,337 |
Net Cash Provided by Operating Activities | 89,931 | 89,679 | 95,166 |
Investment securities b available-for-sale: | |||
Proceeds from maturities, calls and principal reductions | 165,749 | 154,959 | 268,848 |
Proceeds from sales and redemptions | 0 | 38,028 | 0 |
Purchases | 0 | -304,264 | -191,689 |
Investment securities b held-to-maturity: | |||
Proceeds from maturities, calls and principal reductions | 83,989 | 65,790 | 55,352 |
Purchases | -127,187 | -109,655 | -102,034 |
Net increase in loans | -586,121 | -502,687 | -330,760 |
Proceeds from sales of other real estate and repossessed assets | 12,486 | 18,018 | 24,341 |
Purchases of premises and equipment, net | -13,411 | -8,664 | -10,303 |
Cash acquired, net of cash paid, in business combinations | -14,260 | 0 | 339,372 |
Net Cash Provided by (Used in) Investing Activities | -478,755 | -648,475 | 53,127 |
Financing Activities | |||
Net increase in interest- and noninterest-bearing demand deposits and savings accounts | 277,781 | 341,568 | 307,972 |
Net decrease in time deposits | -115,642 | -140,626 | -157,425 |
Net increase in short-term borrowings | 62,039 | 16,965 | 6,677 |
Repayment of FHLB advances | 0 | -34,289 | -8,768 |
Repayment of subordinated debt obligations | -10,310 | 0 | 0 |
Cash dividends paid | -29,528 | -24,521 | -22,566 |
Proceeds from issuance of common stock, net of issuance costs | 76,175 | 53,925 | 0 |
Proceeds from directors' stock purchase plan and exercise of stock options | 1,242 | 806 | 260 |
Cash paid for payroll taxes upon conversion of restricted stock units | -701 | -379 | -248 |
Net Cash Provided by Financing Activities | 261,056 | 213,449 | 125,902 |
Net Increase (Decrease) in Cash and Cash Equivalents | -127,768 | -345,347 | 274,195 |
Cash and Cash Equivalents at Beginning of Year | 310,788 | 656,135 | 381,940 |
Cash and Cash Equivalents at End of Year | 183,020 | 310,788 | 656,135 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid | 14,823 | 18,047 | 23,859 |
Federal income taxes paid | 25,900 | 19,150 | 9,029 |
Loans transferred to other real estate and repossessed assets | 11,308 | 6,382 | 15,794 |
Closed branch offices transferred to other real estate | 841 | 382 | 0 |
Business combinations: | |||
Fair value of tangible assets acquired (noncash) | 747,181 | 0 | 52,337 |
Goodwill and identifiable intangible assets acquired | 82,090 | 0 | 12,350 |
Liabilities assumed | $815,011 | $0 | $404,059 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SUMMARY OF 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. Northwestern Bank was acquired in the acquisition of Northwestern Bancorp, Inc. (Northwestern) on October 31, 2014 and was consolidated with and into Chemical Bank as of that date. 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 from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue. | |
Accounting Standards Codification | |
The Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) became effective on July 1, 2009. At that date, the ASC became FASB's officially recognized source of authoritative U.S. generally accepted accounting principles (GAAP) applicable to all public and non-public non-governmental entities, superseding existing FASB, American Institute of Certified Public Accountants (AICPA), Emerging Issues Task Force (EITF) and related literature. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. | |
Basis of Presentation and Principles of Consolidation | |
The accounting and reporting policies of the Corporation and its subsidiaries conform to GAAP, SEC rules and interpretive releases and prevailing practices within the banking industry. The consolidated financial statements of the Corporation include the accounts of the Corporation and its wholly owned subsidiaries. All significant income and expenses are recorded on the accrual basis. Intercompany accounts and transactions have been eliminated in preparing the consolidated financial statements. | |
The Corporation consolidates variable interest entities (VIEs) in which it is the primary beneficiary. In general, a VIE is an entity that either (i) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (ii) has a group of equity owners that are unable to make significant decisions about its activities or (iii) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns as generated by its operations. If any of these characteristics are present, the entity is subject to a variable interests consolidation model, and consolidation is based on variable interests, not on ownership of the entity's outstanding voting stock. Variable interests are defined as contractual, ownership, or other monetary interests in an entity that change with fluctuations in the entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has the power to direct the activities and absorb losses or the right to receive benefits. | |
The Corporation is a significant limited partner in three low income housing tax credit partnerships. These entities meet the definition of VIEs. The Corporation is not the primary beneficiary of any of the VIEs in which it holds a limited partnership interest; therefore, the VIEs are not consolidated in the Corporation's financial statements. Exposure to loss as a result of its involvement with VIEs at December 31, 2014 was limited to approximately $4.9 million recorded as the Corporation's investment in two of the VIEs, which includes unfunded obligations to these projects of $2.0 million. The Corporation's investment in these projects are recorded in interest receivable and other assets and the future financial obligations are recorded in interest payable and other liabilities in the consolidated statement of financial position at December 31, 2014. The Corporation had no remaining recorded investment or unfunded obligations for the third VIE at 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. | |
Business Combinations | |
Pursuant to the guidance of ASC Topic 805, Business Combinations (ASC 805), the Corporation recognizes assets acquired, including identified intangible assets, and the liabilities assumed in acquisitions at their fair values as of the acquisition date, with the acquisition-related transaction and restructuring costs expensed in the period incurred. | |
On October 31, 2014, the Corporation acquired Northwestern for total cash consideration of $121.0 million. The Corporation recorded $60.0 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of the identifiable net assets acquired Additionally, the Corporation recorded $12.9 million of core deposit intangible assets in conjunction with the acquisition. | |
On December 7, 2012, Chemical Bank acquired 21 branches from Independent Bank, a subsidiary of Independent Bank Corporation (branch acquisition transaction). In connection with the branch acquisition transaction, the Corporation recorded $6.8 million of goodwill, which represented the purchase price over the fair value of identifiable net assets acquired, and $5.6 million of core deposit intangible assets. | |
On April 30, 2010, the Corporation acquired O.A.K. Financial Corporation (OAK) for total consideration of $83.7 million. The Corporation recorded $43.5 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair values of the identifiable net assets acquired. Additionally, the Corporation recorded $9.8 million of other intangible assets as a result of the OAK acquisition attributable to core deposits, mortgage servicing rights and non-compete agreements acquired. | |
See Note 2 for further information regarding the Northwestern and OAK acquisitions and the branch acquisition transaction. | |
ASC 805 affords a measurement period beyond the acquisition date that allows the Corporation the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time. The Corporation anticipates that measurement period adjustments may arise from adjustments to the fair values of assets and liabilities recognized at the acquisition date for Northwestern as additional information is obtained, such as appraisals of collateral securing loans and other borrower information. In the event that a measurement period adjustment is identified, the Corporation will recognize the adjustment as part of its acquisition accounting, which may result in an adjustment to goodwill being recorded. | |
Cash and Cash Equivalents | |
For purposes of reporting cash flows, cash and cash equivalents include cash on hand and interest-bearing deposits held at the Federal Reserve Bank (FRB). | |
Investment Securities | |
Investment securities include investments in debt, trust preferred and preferred stock securities. Investment securities are accounted for in accordance with ASC Topic 320, Investments — Debt and Equity Securities (ASC 320), which requires investments to be classified within one of three categories (trading, held-to-maturity or available-for-sale). The Corporation held no trading investment securities at December 31, 2014 or 2013. | |
Designation as an investment security held-to-maturity is based on the Corporation's intent and ability to hold the security to maturity. Investment securities held-to-maturity are stated at cost, adjusted for purchase price premiums and discounts. Investment securities that are not held-to-maturity are accounted for as securities available-for-sale, and are stated at estimated fair value, with the aggregate unrealized gains and losses, not deemed other-than-temporary, classified as a component of accumulated other comprehensive income (loss), net of income taxes. Realized gains and losses on the sale of investment securities and other-than-temporary impairment (OTTI) charges are determined using the specific identification method and are included within noninterest income in the consolidated statements of income. Premiums and discounts on investment securities are amortized over the estimated lives of the related investment securities based on the effective interest yield method and are included in interest income in the consolidated statements of income. | |
The Corporation assesses equity and debt securities that have fair values below amortized cost basis to determine whether declines (impairment) are other-than-temporary. If the Corporation intends to sell an impaired security or it is more-likely-than-not that the Corporation will be required to sell an impaired security prior to the recovery of its amortized cost, an OTTI write-down is recognized in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Corporation does not intend to sell an impaired security and it is not more-likely-than-not that the Corporation would be required to sell an impaired security before the recovery of its amortized cost basis, then the recognition of the impairment is bifurcated if a credit loss is deemed to have occurred. For a security where the impairment is bifurcated, the impairment is separated into an amount representing the credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. In assessing whether OTTI exists, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the potential for impairments in an entire industry or sub-sector and (iv) the potential for impairments in certain economically depressed geographical locations. | |
Nonmarketable Equity Securities | |
The Corporation is required to hold non-marketable equity securities, comprised of Federal Home Loan Bank of Indianapolis (FHLB) and FRB stock, as a condition of membership. These securities are accounted for at cost, which equals par or redemption value. These securities do not have a readily determinable fair value as their ownership is restricted and there is no market for these securities. These securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. The Corporation records these non-marketable equity securities as a component of other assets and they are periodically evaluated for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value, if applicable. The Corporation's ownership of FHLB stock totaled $19.0 million at December 31, 2014 and $17.2 million at December 31, 2013. The Corporation's ownership of FRB stock totaled $8.4 million at both December 31, 2014 and 2013. | |
Originated Loans | |
Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on October 31, 2014 in the acquisition of Northwestern and on April 30, 2010 in the acquisition of OAK. Originated loans also include loans acquired as part of the branch acquisition transaction 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 held for investment purposes and 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 and loans acquired on October 31, 2014 in the acquisition of Northwestern. 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 ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). Under the provisions of ASC 310-30, the Corporation aggregated acquired loans with an outstanding principal balance of $46 million at the acquisition date for the Northwestern transaction and $105 million at the acquisition date for the OAK transaction that were determined to be loans with deteriorated credit quality and, therefore, met the scope criteria set forth in ASC 310-30. Further, the Corporation understands, as outlined in the AICPA's open letter to the Office of the Chief Accountant of the SEC dated December 18, 2009 and pending further standard setting, that for acquired loans that do not meet the scope criteria of ASC 310-30, a company may elect to account for such acquired loans pursuant to the provisions of either ASC Topic 310-20, Nonrefundable Fees and Other Costs, or ASC 310-30. The Corporation elected to apply ASC 310-30, by analogy, to acquired loans that were determined not to have deteriorated credit quality with an outstanding principal balance of $461 million at the acquisition date for the Northwestern transaction and $578 million at the acquisition date for the OAK transaction and thus follows the accounting and disclosure guidance of ASC 310-30 for these loans. Accordingly, the Corporation applied ASC 310-30 to the entire loan portfolio acquired in the acquisition of Northwestern with an outstanding balance of $507 million at the acquisition date and in the acquisition of OAK with an outstanding principal balance of $683 million at the acquisition date. None of the acquired loans were classified as debt securities. | |
ASC 310-30 allows investors to aggregate acquired loans 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 4 pools for the acquisition of Northwestern and 14 pools for the acquisition of OAK 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 the 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 remaining life of the loan 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 classified 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 renewed for a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a renewal is no longer considered to be 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 loan. | |
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 their 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 recent 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, loan loss trends and giving consideration to estimated loss emergence periods and (iv) an unallocated allowance based on the imprecision in the overall allowance methodology for loans collectively evaluated for impairment. | |
The first element reflects the Corporation's estimate of probable losses based upon the systematic review of individually impaired loans in the originated commercial loan portfolio. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower and discounted collateral exposure. The Corporation measures the investment in an impaired loan based on one of three methods: the loan's observable market price; the fair value of the collateral; or the present value of expected future cash flows discounted at the loan's effective interest rate. Loans in the commercial loan portfolio that were in nonaccrual status (including nonaccrual TDRs) were valued based on the fair value of the collateral securing the loan, while performing and nonperforming TDRs in the commercial loan portfolio were valued based on the present value of expected future cash flows discounted at the loan's effective interest rate. It is the Corporation's general policy to obtain new appraisals at least annually on nonaccrual loans in the commercial loan portfolio and at least every other year on nonperforming TDRs in the commercial loan portfolio that are primarily secured by real estate and have a loan balance of greater than $0.25 million. When the Corporation determines that the fair value of the collateral is less than the carrying value of an impaired loan on nonaccrual status and a portion is deemed not collectible, the portion of the impairment that is deemed not collectible is charged off (confirmed loss) and deducted from the allowance. The remaining carrying value of the impaired loan is classified as a nonperforming loan. When the Corporation determines that the fair value of the collateral is less than the carrying value of an impaired loan but believes it is probable it will recover this impairment, the Corporation establishes a valuation allowance for such impairment. | |
The second element reflects the application of the Corporation's loan grade risk rating system. This risk rating system is similar to those employed by state and federal banking regulators. Loans in the commercial loan portfolio that are risk rated below a certain predetermined risk grade and nonaccrual residential mortgage, consumer installment and home equity loans are assigned a loss allocation factor that is based upon a historical analysis of actual loan losses incurred and a valuation of the type of collateral securing the loans. | |
The third element is determined by assigning allocations based principally upon a weighted five-year average of loss experience for each class of loan with higher weighting placed on the most recent years. Average losses may be adjusted based on current loan loss experience, delinquency trends, estimated loss emergence periods and other environmental factors. This component considers the lagging impact of historical charge-off ratios in periods where future loan charge-offs are expected to increase or decrease, trends in delinquencies and nonaccrual loans, the changing portfolio mix in terms of collateral, average loan balance, loan growth and the degree of seasoning in the various loan portfolios. Loan loss analyses are performed quarterly and certain inputs and parameters are updated as necessary to reflect the current credit environment. | |
The fourth element is based on factors that cannot be associated with a specific credit or loan class and reflects an attempt to ensure that the overall allowance appropriately reflects a margin for the imprecision necessarily inherent in the estimates of loan losses. Management maintains an unallocated allowance to recognize the uncertainty and imprecision underlying the process of estimating inherent loan losses in the loan portfolio. Determination of the probable losses inherent in the portfolio, which are not necessarily captured by the allocation methodology discussed above, involves the exercise of judgment. The unallocated allowance associated with the imprecision in the risk rating system is based on a historical evaluation of the accuracy of the risk ratings associated with loans. This unallocated portion of the allowance is judgmentally determined and generally serves to compensate for the uncertainty in estimating inherent losses, particularly in times of changing economic conditions, and also considers the inherent judgment associated with risk rating commercial loans. The unallocated portion of the allowance also takes into consideration economic conditions within the State of Michigan and nationwide, including unemployment levels, industry-wide loan delinquency rates, changing commercial and residential real estate values and inventory levels of residential lots, condominiums and single family houses held for sale. | |
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 processes, 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. | |
Mortgage Banking Operations | |
The origination of residential mortgage loans is an integral component of the business of the Corporation. The Corporation generally sells conforming long-term fixed interest rate mortgage loans it originates in the secondary market. Gains on the sales of these loans are determined using the specific identification method. The Corporation sells residential mortgage loans in the secondary market on either a servicing retained or released basis. | |
The Corporation elected the fair value measurement option, as prescribed by ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), for all residential mortgage loans held-for-sale originated on or after July 1, 2012. This election allows for a more effective offset of the changes in fair value of residential mortgage loans held-for-sale and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. Residential mortgage loans held-for-sale are carried at fair value after June 30, 2012, with changes in fair value recorded through earnings. Prior to July 1, 2012, residential mortgage loans held-for-sale were carried at the lower of aggregate cost or market. The value of mortgage loans held-for-sale and other residential mortgage loan commitments to customers are hedged by utilizing best efforts forward commitments to sell loans to investors in the secondary market. Such forward commitments are generally entered into at the time customer applications are accepted to protect the value of the mortgage loans from increases in market interest rates during the period held and are generally settled with the investor in the secondary market within 90 days after entering into the forward commitment. | |
Forward loan commitments are accounted for as derivatives and recorded at fair value, with changes in fair value recorded through earnings. The Corporation recognizes revenue associated with the expected future cash flows of servicing loans for loans held-for-sale at the time a forward loan commitment is made to originate a held-for-sale loan, as required under SEC Staff Accounting Bulletin No. 109, Written Loan Commitments Recorded at Fair Value Through Earnings. | |
The Corporation accounts for mortgage servicing rights (MSRs) by separately recognizing servicing assets at the date of sale. An asset is recognized for the rights to service mortgage loans that are created by the origination of mortgage loans that are sold with the servicing retained by the Corporation. The Corporation's MSRs are included in other intangible assets in the statement of financial condition. The Corporation measures its MSRs at the lower of amortized cost or fair value and amortizes MSRs in proportion to and over the period of net servicing income. Unexpected prepayments of mortgage loans result in increased amortization of MSRs, as the remaining book value of the MSRs is expensed at the time of prepayment. The Corporation assesses MSRs for impairment on a quarterly basis based on fair value measurements. For purposes of measuring impairment, MSRs are stratified into relatively homogeneous pools based on characteristics such as period of origination, maturity date and interest rates. MSRs are also stratified between servicing assets originated by the Corporation and those acquired in acquisitions of other institutions. Any temporary impairment of MSRs is recognized as a valuation allowance, resulting in a reduction of mortgage banking revenue. The valuation allowance is recovered when impairment that is believed to be temporary no longer exists. Other-than-temporary impairments are recognized if the recoverability of the carrying value is determined to be remote. When this occurs, the unrecoverable portion of the valuation allowance is recorded as a direct write-down to the carrying value of MSRs. This direct write-down permanently reduces the carrying value of the MSRs, precluding recognition of subsequent recoveries, and results in a reduction of mortgage banking revenue. For purposes of measuring the fair value of MSRs, the Corporation utilizes a third-party modeling software program which is periodically validated by using valuations received from third-party valuation specialists. Servicing income is recognized when earned and is offset by the amortization of MSRs. | |
Premises and Equipment | |
Land is recorded at cost. Premises and equipment are stated at cost less accumulated depreciation. Premises and equipment are depreciated over the estimated useful lives of the assets. The estimated useful lives are generally 25 to 40 years for buildings and three to ten years for all other depreciable assets. Depreciation is computed on the straight-line method. Maintenance and repairs are charged to expense as incurred. | |
Other Real Estate | |
Other real estate (ORE) is primarily comprised of commercial and residential real estate properties, including vacant land and development properties, obtained in partial or total satisfaction of loan obligations. ORE also includes closed branch offices that are held for sale. ORE is recorded at the lower of cost or the estimated fair value of the property, less anticipated selling costs, based upon the property's appraised value at the date of transfer to ORE and management's estimate of the fair value of the collateral, with any difference between the net realizable value of the property and the carrying value of the loan charged to the allowance for loan losses. Subsequent changes in the fair value of ORE are recognized as adjustments to the carrying amount, not to exceed the initial carrying value of the assets at the time of transfer. Changes in the fair value of ORE, subsequent to the initial transfer to ORE, and costs incurred to maintain ORE are recorded in other operating expenses on the consolidated statements of income. Gains or losses resulting from the sale of ORE are also recognized in other operating expenses on the date of sale. ORE totaling $14.8 million and $9.5 million at December 31, 2014 and 2013, respectively, was included in the consolidated statements of financial position in interest receivable and other assets. ORE at December 31, 2014 included $0.9 million related to closed branch offices. | |
Goodwill | |
Goodwill is not amortized, but rather is subject to impairment tests annually, or more frequently if triggering events occur and indicate potential impairment. The Corporation's annual goodwill impairment test was performed as of October 31, 2014. The Corporation elected to bypass the qualitative assessment of goodwill impairment that became acceptable as a result of FASB Accounting Standards Update (ASU) 2011-08, Testing Goodwill for Impairment (ASU 2011-08) and performed Step 1 of the goodwill impairment test as of October 31, 2014, consistent with the Corporation's historical practice. | |
The income and market approach methodologies prescribed in ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), were utilized to estimate the value of the Corporation's goodwill under Step 1 of the goodwill impairment test. The income approach quantifies the present value of future economic benefits by capitalizing or discounting the cash flows of a business. This approach considers projected dividends, earnings, dividend paying capacity and future residual value. The market approach estimates the fair value of the entity by comparing it to similar companies that have recently been acquired or companies that are publicly traded on an organized exchange. The market approach includes a comparison of the financial condition of the entity against the financial characteristics and pricing information of comparable companies. As a result of performing the Step 1 goodwill impairment evaluation, the Corporation determined that its goodwill was not impaired at October 31, 2014.The Corporation also determined that no triggering events occurred that indicated impairment from the most recent valuation date through December 31, 2014 and that the Corporation's goodwill was not impaired at December 31, 2014. | |
Other Intangible Assets | |
Intangible assets consist of core deposit intangible assets and MSRs. Core deposit intangible assets arose as the result of business combinations or other acquisitions and are amortized over periods ranging from 10 to 15 years, primarily on an accelerated basis, as applicable. | |
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. | |
Short-term Borrowings | |
Short-term borrowings are comprised of securities sold under agreements to repurchase with customers, federal funds purchased and short-term Federal Home Loan Bank advances with original scheduled maturities of one year or less. Securities sold under agreements to repurchase are collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated statements of financial position. The dollar amount of the securities underlying the agreements remain in the Corporation's investment securities portfolio. The Corporation's securities sold under agreements to repurchase are considered a stable source of liquidity, much like its core deposit base, and are generally only provided to customers that have an established banking relationship with Chemical Bank. | |
Federal Home Loan Bank Advances | |
Federal Home Loan Bank (FHLB) advances are borrowings from the FHLB to fund short-term liquidity needs as well as a portion of the loan and investment securities portfolios. These advances are secured, under a blanket security agreement, by first lien residential mortgage loans with an aggregate book value equal to at least 145% of the FHLB advances and the FHLB stock owned by the Corporation. FHLB advances with an original maturity of one year or less are classified as short-term and FHLB advances with an original maturity of more than one year are classified as long-term. | |
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 December 31, 2014 and 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. | |
Pension and Postretirement Benefit Plan Actuarial Assumptions | |
The Corporation's defined benefit pension, supplemental pension and postretirement benefit obligations and related costs are calculated using actuarial concepts and measurements. Two critical assumptions, the discount rate and the expected long-term rate of return on plan assets, are important elements of expense and/or benefit obligation measurements. Other assumptions involve employee demographic factors such as retirement patterns, mortality, turnover and the rate of future compensation increases, as well as future health care costs. The Corporation evaluates all assumptions annually. Mortality assumptions at December 31, 2014 were based on the new RP-2014 mortality tables as prescribed by the Pension Protection Act of 2006. The new mortality tables are expected to result in increases in pension, supplemental pension and postretirement benefit expenses. | |
The discount rate enables the Corporation to state expected future benefit payments as a present value on the measurement date. The Corporation determined the discount rate at December 31, 2014 and 2013 by utilizing the results from a discount rate model that involves selecting a portfolio of bonds to settle the projected benefit payments of each plan. The selected bond portfolios are derived from a universe of corporate bonds rated at Aa quality. After a bond portfolio is selected, a single rate is determined that equates the market value of the bonds purchased to the discounted value of the plan's benefit payments which represents the discount rate. A lower discount rate increases the present value of benefit obligations and increases pension, supplemental pension and postretirement benefit expenses. | |
To determine the expected long-term rate of return on defined benefit pension plan assets, the Corporation considers the current asset allocation of the defined benefit pension plan, as well as historical and expected returns on each asset class. A lower expected rate of return on defined benefit pension plan assets will increase pension expense. | |
The Corporation recognizes the over- or under-funded status of a plan as an other asset or other liability in the consolidated statements of financial position as measured by the difference between the fair value of the plan assets and the projected benefit obligation. Unrecognized prior service costs and actuarial gains and losses are recognized as a component of accumulated other comprehensive income (loss). The Corporation measures defined benefit plan assets and obligations as of December 31. | |
Advertising Costs | |
Advertising costs are expensed as incurred. | |
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. | |
The Corporation and its subsidiaries file a consolidated federal income tax return. The provision for federal income taxes is based on income and expenses, as reported in the consolidated financial statements, rather than amounts reported on the Corporation's federal income tax return. The difference between the federal statutory income tax rate and the Corporation's effective federal income tax rate is primarily a function of the proportion of the Corporation's interest income exempt from federal taxation, nondeductible interest expense and other nondeductible expenses relative to pretax income and tax credits. When income and expenses are recognized in different periods for tax purposes than for book purposes, deferred tax assets and liabilities are recognized for the future tax consequences attributable to the temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Differences in the tax and book carrying amounts of assets and liabilities can also be generated when the Corporation acquires other banks or bank branches. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date of the change. | |
On a quarterly basis, management assesses the reasonableness of its effective federal tax rate based upon its 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 December 31, 2014 and 2013. | |
Comprehensive Income | |
Comprehensive income of the Corporation includes net income and adjustments to shareholders' equity for changes in unrealized gains and losses on investment securities available-for-sale and changes in the net actuarial gain/loss for the Corporation's defined benefit pension and postretirement plans, net of income taxes. The Corporation presents comprehensive income as a component in the consolidated statements of changes in shareholders' equity and the components of other comprehensive income separately in the consolidated statements of comprehensive income. | |
Adopted Accounting Pronouncements | |
Obligations Resulting from Joint and Several Liability Arrangements | |
In February 2013, the 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, as compared to 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 $0.4 million during the year ended December 31, 2014. While the adoption of ASU 2014-01 requires retrospective application to all periods presented, the Corporation did not restate income tax expenses for the years ended December 31, 2013 and December 31, 2012 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 $4.9 million at December 31, 2014 and $3.1 million at December 31, 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 on January 1, 2015 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. | |
Government-Guaranteed Mortgage Loans | |
In August 2014, the FASB issued ASU 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-14). ASU 2014-14 provides clarifying guidance related to how creditors classify government-guaranteed loans upon foreclosure. Upon foreclosure of a government-guaranteed mortgage loan, the loan should be derecognized and a separate other receivable should be recognized if the following conditions are met: (i) the loan has a government guarantee that is not separable from the loan before foreclosure; (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor at the time of foreclosure. ASU 2014-14 is effective for public companies for interim and annual periods beginning after December 15, 2014. An entity should adopt using either the modified retrospective method or the prospective transition method. An entity must apply the same method elected under ASU 2014-04. Early adoption is permitted if the entity has already adopted ASU 2014-04. The adoption of ASU 2014-14 on January 1, 2015 is not expected to have a material impact on the Corporation's consolidated financial condition or results of operations. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||
Acquisitions | ACQUISITIONS | ||||||||||||||||
Pending Acquisition of Monarch Community Bancorp, Inc. | |||||||||||||||||
On October 31, 2014, the Corporation entered into an Agreement and Plan of Merger with Monarch Community Bancorp, Inc. (Monarch). Under the terms of the merger agreement, the Corporation will exchange 0.0982 shares of its common stock for each share of Monarch common stock outstanding. Based on the closing price of the Corporation's common stock on December 31, 2014, the merger has a transaction value of approximately $27.0 million. The merger has received regulatory approval. Completion of the merger is subject to the approval of Monarch's shareholders and satisfaction of other customary closing conditions. | |||||||||||||||||
In connection with the pending merger with Monarch, two purported Monarch stockholders have filed putative class action lawsuits against Monarch, its board of directors, Monarch Community Bank, the Corporation and Chemical Bank. Among other remedies, the plaintiffs seek to enjoin the merger. Monarch and the Corporation have entered into a memorandum of understanding with the plaintiffs regarding the settlement of these lawsuits, which is subject to court approval. If this litigation is not resolved, these lawsuits could prevent or delay completion of the merger and result in substantial costs to Monarch and the Corporation, including any costs associated with indemnification. Additional lawsuits may be filed against Monarch, the Corporation or the directors and officers of either company in connection with the merger. The defense or settlement of any lawsuit or claim that remains unresolved at the effective time of the merger may adversely affect the Corporation's business, financial condition, results of operations, cash flows and market price. | |||||||||||||||||
Pending Acquisition of Lake Michigan Financial Corporation | |||||||||||||||||
On January 5, 2015, the Corporation entered into an Agreement and Plan of Merger with Lake Michigan Financial Corporation (Lake Michigan). Under the terms of the merger agreement, each Lake Michigan shareholder will receive $16.64 in cash and 1.326 shares of the Corporation's common stock for each share of Lake Michigan common stock. Based on the 30-day volume weighted price per share of the Corporation's common stock as of January 5, 2015, the merger has a transaction value of approximately $184.1 million. Completion of the merger is subject to regulatory approval and the approval of Lake Michigan's shareholders, in addition to satisfaction of other customary closing conditions. | |||||||||||||||||
Acquisition of Northwestern Bancorp, Inc. | |||||||||||||||||
On October 31, 2014, the Corporation acquired all of the outstanding stock of Northwestern Bancorp, Inc. (Northwestern) for total cash consideration of $121 million. Northwestern, a bank holding company which owned Northwestern Bank, provided traditional banking services and products through 25 banking offices serving communities in the northwestern lower peninsula of Michigan. As of the October 31, 2014 acquisition date, Northwestern added total assets of $815 million, including total loans of $475 million, and total deposits of $794 million to the Corporation. Northwestern Bank was consolidated with and into Chemical Bank as of the acquisition date. In connection with the acquisition of Northwestern, the Corporation recorded $60.0 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Northwestern. In addition, the Corporation recorded $12.9 million of core deposit intangible assets in conjunction with the acquisition. | |||||||||||||||||
The results of the merged Northwestern operations are presented within the Corporation’s consolidated financial statements from the acquisition date. The disclosure of Northwestern's post-acquisition revenue and net income is not practical due to the combining of Northwestern Bank’s operations with and into Chemical Bank as of the acquisition date. Acquisition-related transaction expenses associated with the Northwestern acquisition totaled $5.8 million during 2014. | |||||||||||||||||
The summary computation of the purchase price, including adjustments to reflect Northwestern’s assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Northwestern is presented below. The acquisition accounting presented below may be further adjusted during a measurement period of up to one year beyond the acquisition date that provides the Corporation with the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time. | |||||||||||||||||
A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands): | |||||||||||||||||
Cash paid to acquire outstanding stock | $ | 119,428 | |||||||||||||||
Cash paid for stock option cancellation agreements | 1,580 | ||||||||||||||||
Cash paid in acquisition | $ | 121,008 | |||||||||||||||
Net assets acquired: | |||||||||||||||||
Northwestern shareholders' equity | $ | 70,081 | |||||||||||||||
Adjustments to reflect fair value of net assets acquired: | |||||||||||||||||
Loans | (32,500 | ) | |||||||||||||||
Allowance for loan losses | 16,453 | ||||||||||||||||
Deferred tax assets, net | 5,787 | ||||||||||||||||
Premises and equipment | (8,961 | ) | |||||||||||||||
Core deposit intangibles | 12,891 | ||||||||||||||||
Mortgage servicing rights | 1,568 | ||||||||||||||||
Goodwill | (2,050 | ) | |||||||||||||||
Other real estate | (800 | ) | |||||||||||||||
Estimated losses on sold loans | (1,650 | ) | |||||||||||||||
Other assets and other liabilities | 225 | ||||||||||||||||
Fair value or adjusted net assets acquired | 61,044 | ||||||||||||||||
Goodwill recognized as a result of the Northwestern transaction | $ | 59,964 | |||||||||||||||
Allocation of Purchase Price | |||||||||||||||||
The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Northwestern were as follows (in thousands): | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 106,748 | |||||||||||||||
Investment securities | 230,358 | ||||||||||||||||
Loans | 475,285 | ||||||||||||||||
Premises and equipment | 18,770 | ||||||||||||||||
Deferred tax asset, net | 8,557 | ||||||||||||||||
Interest receivable and other assets | 14,211 | ||||||||||||||||
Goodwill | 59,964 | ||||||||||||||||
Core deposit intangible asset | 12,891 | ||||||||||||||||
Mortgage servicing rights asset | 9,235 | ||||||||||||||||
Assets acquired, at fair value | 936,019 | ||||||||||||||||
Liabilities | |||||||||||||||||
Deposits | 794,447 | ||||||||||||||||
Subordinated debt obligation | 10,310 | ||||||||||||||||
Interest payable and other liabilities | 10,254 | ||||||||||||||||
Total liabilities acquired, at fair value | 815,011 | ||||||||||||||||
Total cash purchase price | $ | 121,008 | |||||||||||||||
The Corporation repaid the subordinated debt obligation on December 31, 2014. | |||||||||||||||||
Upon acquisition, the Northwestern loan portfolio had contractually required principal and interest payments receivable of $507 million and $112 million, respectively, expected principal and interest cash flows of $481 million and $104 million, respectively, and a fair value of $475 million. The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $34 million at the acquisition date, with $26 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $110 million at the acquisition date. At December 31, 2014, the outstanding contractual principal balance and the carrying amount of the Northwestern acquired loan portfolio were $485 million and $452 million, respectively, and there was no related allowance for loan losses at that date. | |||||||||||||||||
Unaudited Pro Forma Combined Results of Operations | |||||||||||||||||
The following unaudited pro forma combined results of operations of Chemical and Northwestern presents results as if the acquisition had been completed as of the beginning of each period indicated. The unaudited pro forma combined results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that Chemical would have reported had this transaction been completed as of the dates and for the periods presented, nor are they necessarily indicative of future results. In particular, no adjustments have been made to eliminate the amount of Northwestern's provision for loan losses incurred prior to the acquisition date that would not have been necessary had the acquired loans been recorded at fair value as of the beginning of each period indicated. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded. | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Interest income | $ | 247,748 | $ | 241,499 | |||||||||||||
Interest expense | 16,221 | 20,014 | |||||||||||||||
Net interest income | 231,527 | 221,485 | |||||||||||||||
Provision for loan losses | 6,825 | 18,329 | |||||||||||||||
Net interest income after provision for loan losses | 224,702 | 203,156 | |||||||||||||||
Noninterest income | 79,229 | 82,492 | |||||||||||||||
Operating expenses | 201,289 | 206,025 | |||||||||||||||
Income before income taxes | 102,642 | 79,623 | |||||||||||||||
Federal income tax expense | 32,209 | 23,777 | |||||||||||||||
Net income | $ | 70,433 | $ | 55,846 | |||||||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 2.25 | $ | 1.98 | |||||||||||||
Diluted | 2.23 | 1.97 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 31,367 | 28,183 | |||||||||||||||
Diluted | 31,588 | 28,352 | |||||||||||||||
Acquisition of 21 Branches | |||||||||||||||||
On December 7, 2012, Chemical Bank acquired 21 branches from Independent Bank, a subsidiary of Independent Bank Corporation. In addition to the branch offices, which are located in the Northeast and Battle Creek regions of Michigan, the acquisition included $404 million in deposits and $44 million in loans. 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 acquisition of the branches, the Corporation recorded $6.8 million of goodwill and $5.6 million of core deposit intangible assets. | |||||||||||||||||
Acquisition of O.A.K. Financial Corporation | |||||||||||||||||
On April 30, 2010, the Corporation acquired O.A.K. Financial Corporation (OAK) for total consideration of $83.7 million. OAK provided traditional commercial banking services and products through 14 banking offices serving communities in Ottawa, Allegan and Kent counties in west Michigan. At the acquisition date, OAK added total assets of $820 million, including total loans of $627 million and total deposits of $693 million, including brokered deposits of $193 million, to the Corporation. The outstanding contractual principal balance and the carrying amount of the acquired OAK loan portfolio were $268 million and $246 million, respectively, at December 31, 2014, compared to $320 million and $295 million, respectively, at December 31, 2013. | |||||||||||||||||
Accretable Yield | |||||||||||||||||
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: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Northwestern | OAK | Total | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at beginning of period | $ | — | $ | 32,610 | $ | 32,610 | $ | 49,390 | |||||||||
Addition attributable to Northwestern transaction | 110,003 | — | 110,003 | — | |||||||||||||
Additions, net of reductions* | (1,605 | ) | 5,411 | 3,806 | (29 | ) | |||||||||||
Accretion recognized in interest income | (3,723 | ) | (14,735 | ) | (18,458 | ) | (16,876 | ) | |||||||||
Reclassification from nonaccretable difference | — | 10,000 | 10,000 | 125 | |||||||||||||
Balance at end of period | $ | 104,675 | $ | 33,286 | $ | 137,961 | $ | 32,610 | |||||||||
* | Represents additions in 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 OAK acquired loan portfolio has improved, which has resulted in an improvement in expected cash flows of loan pools in the OAK acquired commercial loan portfolio. Accordingly, management reclassified $10.0 million during 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 | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 December 31, 2014 and 2013: | |||||||||||||||||||||||||
Investment Securities Available-for-Sale | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 8,272 | $ | — | $ | 13 | $ | 8,259 | |||||||||||||||||
Government sponsored agencies | 263,658 | 356 | 511 | 263,503 | |||||||||||||||||||||
State and political subdivisions | 45,157 | 1,087 | 17 | 46,227 | |||||||||||||||||||||
Residential mortgage-backed securities | 240,465 | 885 | 1,543 | 239,807 | |||||||||||||||||||||
Collateralized mortgage obligations | 145,316 | 261 | 1,194 | 144,383 | |||||||||||||||||||||
Corporate bonds | 44,930 | 213 | 48 | 45,095 | |||||||||||||||||||||
Preferred stock | 1,389 | 201 | — | 1,590 | |||||||||||||||||||||
Total | $ | 749,187 | $ | 3,003 | $ | 3,326 | $ | 748,864 | |||||||||||||||||
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 | |||||||||||||||||
Investment Securities Held-to-Maturity | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
State and political subdivisions | $ | 305,913 | $ | 7,294 | $ | 4,557 | $ | 308,650 | |||||||||||||||||
Trust preferred securities | 10,500 | — | 3,410 | 7,090 | |||||||||||||||||||||
Total | $ | 316,413 | $ | 7,294 | $ | 7,967 | $ | 315,740 | |||||||||||||||||
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 | |||||||||||||||||
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 December 31, 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 considered well-capitalized under regulatory guidelines at December 31, 2014. | |||||||||||||||||||||||||
At December 31, 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 December 31, 2014 of $6.8 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 $3.4 million at that date. | |||||||||||||||||||||||||
The following is a summary of the amortized cost and fair value of investment securities at December 31, 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. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Investment Securities Available-for-Sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 194,598 | $ | 194,475 | |||||||||||||||||||||
Due after one year through five years | 487,952 | 487,511 | |||||||||||||||||||||||
Due after five years through ten years | 61,825 | 61,887 | |||||||||||||||||||||||
Due after ten years | 3,423 | 3,401 | |||||||||||||||||||||||
Preferred stock | 1,389 | 1,590 | |||||||||||||||||||||||
Total | $ | 749,187 | $ | 748,864 | |||||||||||||||||||||
Investment Securities Held-to-Maturity: | |||||||||||||||||||||||||
Due in one year or less | $ | 37,069 | $ | 37,222 | |||||||||||||||||||||
Due after one year through five years | 131,711 | 134,918 | |||||||||||||||||||||||
Due after five years through ten years | 96,736 | 98,774 | |||||||||||||||||||||||
Due after ten years | 50,897 | 44,826 | |||||||||||||||||||||||
Total | $ | 316,413 | $ | 315,740 | |||||||||||||||||||||
The following schedule summarizes information for both available-for-sale and held-to-maturity investment securities with gross unrealized losses at December 31, 2014 and 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 | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 8,259 | $ | 13 | $ | — | $ | — | $ | 8,259 | $ | 13 | |||||||||||||
Government sponsored agencies | 166,963 | 406 | 31,927 | 105 | 198,890 | 511 | |||||||||||||||||||
State and political subdivisions | 62,310 | 3,348 | 36,847 | 1,226 | 99,157 | 4,574 | |||||||||||||||||||
Residential mortgage-backed securities | 17,276 | 52 | 180,194 | 1,491 | 197,470 | 1,543 | |||||||||||||||||||
Collateralized mortgage obligations | 63,077 | 179 | 31,620 | 1,015 | 94,697 | 1,194 | |||||||||||||||||||
Corporate bonds | — | — | 14,952 | 48 | 14,952 | 48 | |||||||||||||||||||
Trust preferred securities | — | — | 7,090 | 3,410 | 7,090 | 3,410 | |||||||||||||||||||
Preferred stock | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 317,885 | $ | 3,998 | $ | 302,630 | $ | 7,295 | $ | 620,515 | $ | 11,293 | |||||||||||||
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 | |||||||||||||
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 reasonably 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 at December 31, 2014, represented an other-than-temporary impairment (OTTI). Management believed that the unrealized losses on investment securities at December 31, 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 $3.4 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 December 31, 2014, the Corporation expected to recover the entire amortized cost basis of these investment securities. | |||||||||||||||||||||||||
At December 31, 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 December 31, 2014, the Corporation believed the impairments in its investment securities portfolio were temporary in nature. Additionally, no impairment loss was realized in the Corporation's consolidated statement of income for the year ended December 31, 2014. However, there is no assurance that OTTI may not occur in the future. | |||||||||||||||||||||||||
Investment securities with an amortized cost of $493 million and $616 million at December 31, 2014 and 2013, respectively, were pledged to secure public fund deposits, short-term borrowings and for other purposes as required by law. |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 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 December 31, 2014 and 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: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 1,354,881 | $ | 1,176,307 | |||||||||||||||||||||||||
Commercial real estate | 1,557,648 | 1,232,658 | |||||||||||||||||||||||||||
Real estate construction | 152,745 | 89,795 | |||||||||||||||||||||||||||
Land development | 18,750 | 20,066 | |||||||||||||||||||||||||||
Subtotal | 3,084,024 | 2,518,826 | |||||||||||||||||||||||||||
Consumer loan portfolio: | |||||||||||||||||||||||||||||
Residential mortgage | 1,110,390 | 960,423 | |||||||||||||||||||||||||||
Consumer installment | 829,570 | 644,769 | |||||||||||||||||||||||||||
Home equity | 664,246 | 523,603 | |||||||||||||||||||||||||||
Subtotal | 2,604,206 | 2,128,795 | |||||||||||||||||||||||||||
Total loans | $ | 5,688,230 | $ | 4,647,621 | |||||||||||||||||||||||||
Chemical Bank has extended loans to its directors, executive officers and their affiliates. These loans were made in the ordinary course of business upon normal terms, including collateralization and interest rates prevailing at the time, and did not involve more than the normal risk of repayment by the borrower. The aggregate loans outstanding to the directors, executive officers and their affiliates totaled $31.2 million at December 31, 2014 and $26.8 million at December 31, 2013. During 2014 and 2013, there were $39.3 million and $54.2 million, respectively, of new loans and other additions, while repayments and other reductions totaled $34.9 million and $43.4 million, respectively. | |||||||||||||||||||||||||||||
Loans held-for-sale, comprised of fixed-rate residential mortgage loans, were $9.1 million at December 31, 2014 and $5.2 million at December 31, 2013. The Corporation sold residential mortgage loans totaling $149 million in 2014 and $211 million in 2013. | |||||||||||||||||||||||||||||
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 eight independent members of the board of directors, 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 the 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, and 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 December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Real Estate | Land | Total | |||||||||||||||||||||||||
Construction | Development | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | $ | 1,171,817 | $ | 1,114,529 | $ | 134,668 | $ | 2,952 | $ | 2,423,966 | |||||||||||||||||||
Risk Grade 6 | 37,800 | 34,996 | 1,408 | 738 | 74,942 | ||||||||||||||||||||||||
Risk Grade 7 | 29,863 | 29,935 | 2,502 | 613 | 62,913 | ||||||||||||||||||||||||
Risk Grade 8 | 16,417 | 24,958 | 162 | 225 | 41,762 | ||||||||||||||||||||||||
Risk Grade 9 | 1 | 8 | — | — | 9 | ||||||||||||||||||||||||
Subtotal | 1,255,898 | 1,204,426 | 138,740 | 4,528 | 2,603,592 | ||||||||||||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | 76,780 | 321,018 | 14,005 | 11,789 | 423,592 | ||||||||||||||||||||||||
Risk Grade 6 | 12,687 | 8,698 | — | 583 | 21,968 | ||||||||||||||||||||||||
Risk Grade 7 | 4,089 | 12,478 | — | 197 | 16,764 | ||||||||||||||||||||||||
Risk Grade 8 | 5,427 | 11,028 | — | 1,653 | 18,108 | ||||||||||||||||||||||||
Risk Grade 9 | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 98,983 | 353,222 | 14,005 | 14,222 | 480,432 | ||||||||||||||||||||||||
Total | $ | 1,354,881 | $ | 1,557,648 | $ | 152,745 | $ | 18,750 | $ | 3,084,024 | |||||||||||||||||||
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 | |||||||||||||||||||
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 to be in a nonperforming status until they meet the Corporation's definition of a performing TDR, at which time they are considered to be 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 December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
Residential Mortgage | Consumer | Home Equity | Total | ||||||||||||||||||||||||||
Installment | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||
Performing | $ | 987,542 | $ | 818,878 | $ | 566,083 | $ | 2,372,503 | |||||||||||||||||||||
Nonperforming | 10,459 | 500 | 3,013 | 13,972 | |||||||||||||||||||||||||
Subtotal | 998,001 | 819,378 | 569,096 | 2,386,475 | |||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||
Performing | 111,101 | 10,174 | 94,696 | 215,971 | |||||||||||||||||||||||||
Nonperforming | 1,288 | 18 | 454 | 1,760 | |||||||||||||||||||||||||
Subtotal | 112,389 | 10,192 | 95,150 | 217,731 | |||||||||||||||||||||||||
Total | $ | 1,110,390 | $ | 829,570 | $ | 664,246 | $ | 2,604,206 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Nonperforming Loans | |||||||||||||||||||||||||||||
A summary of nonperforming loans follows: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial | $ | 16,418 | $ | 18,374 | |||||||||||||||||||||||||
Commercial real estate | 24,966 | 28,598 | |||||||||||||||||||||||||||
Real estate construction | 162 | 371 | |||||||||||||||||||||||||||
Land development | 225 | 2,309 | |||||||||||||||||||||||||||
Residential mortgage | 6,706 | 8,921 | |||||||||||||||||||||||||||
Consumer installment | 500 | 676 | |||||||||||||||||||||||||||
Home equity | 1,667 | 2,648 | |||||||||||||||||||||||||||
Total nonaccrual loans | 50,644 | 61,897 | |||||||||||||||||||||||||||
Accruing loans contractually past due 90 days or more as to interest or principal payments: | |||||||||||||||||||||||||||||
Commercial | 170 | 536 | |||||||||||||||||||||||||||
Commercial real estate | — | 190 | |||||||||||||||||||||||||||
Residential mortgage | 557 | 537 | |||||||||||||||||||||||||||
Home equity | 1,346 | 734 | |||||||||||||||||||||||||||
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 2,073 | 1,997 | |||||||||||||||||||||||||||
Nonperforming TDRs: | |||||||||||||||||||||||||||||
Commercial loan portfolio | 15,271 | 13,414 | |||||||||||||||||||||||||||
Consumer loan portfolio | 3,196 | 4,676 | |||||||||||||||||||||||||||
Total nonperforming TDRs | 18,467 | 18,090 | |||||||||||||||||||||||||||
Total nonperforming loans | $ | 71,184 | $ | 81,984 | |||||||||||||||||||||||||
The Corporation's nonaccrual loans at December 31, 2014 and 2013 included $37.2 million and $37.3 million, respectively, of nonaccrual TDRs. | |||||||||||||||||||||||||||||
There was no interest income recognized on nonaccrual loans during 2014, 2013 and 2012 while the loans were in nonaccrual status. During 2014, 2013 and 2012, the Corporation recognized $0.5 million, $0.9 million and $1.1 million, respectively, of interest income on these loans while they were in an accruing status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $3.3 million in 2014, $3.5 million in 2013 and $4.5 million in 2012. During 2014, 2013 and 2012, the Corporation recognized interest income of $3.6 million, $3.2 million and $2.9 million, respectively, on performing and nonperforming TDRs. | |||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
The following schedule presents impaired loans by classes of loans at December 31, 2014: | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest Income | |||||||||||||||||||||||||
Investment | Principal | Valuation | Annual | Recognized | |||||||||||||||||||||||||
Balance | Allowance | Recorded | While on | ||||||||||||||||||||||||||
Investment | Impaired Status | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 966 | $ | 1,040 | $ | 293 | $ | 2,117 | $ | — | |||||||||||||||||||
Commercial real estate | 2,587 | 2,927 | 710 | 3,699 | — | ||||||||||||||||||||||||
Real estate construction | — | — | — | — | — | ||||||||||||||||||||||||
Land development | — | — | — | — | — | ||||||||||||||||||||||||
Residential mortgage | 19,681 | 19,681 | 335 | 19,740 | 1,252 | ||||||||||||||||||||||||
Subtotal | 23,234 | 23,648 | 1,338 | 25,556 | 1,252 | ||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 38,094 | 44,557 | — | 39,020 | 1,375 | ||||||||||||||||||||||||
Commercial real estate | 60,616 | 82,693 | — | 49,676 | 1,567 | ||||||||||||||||||||||||
Real estate construction | 162 | 255 | — | 164 | — | ||||||||||||||||||||||||
Land development | 1,928 | 3,484 | — | 3,551 | 131 | ||||||||||||||||||||||||
Residential mortgage | 7,994 | 7,994 | — | 7,005 | 15 | ||||||||||||||||||||||||
Consumer installment | 518 | 518 | — | 602 | 1 | ||||||||||||||||||||||||
Home equity | 2,121 | 2,121 | — | 2,302 | 12 | ||||||||||||||||||||||||
Subtotal | 111,433 | 141,622 | — | 102,320 | 3,101 | ||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 39,060 | 45,597 | 293 | 41,137 | 1,375 | ||||||||||||||||||||||||
Commercial real estate | 63,203 | 85,620 | 710 | 53,375 | 1,567 | ||||||||||||||||||||||||
Real estate construction | 162 | 255 | — | 164 | — | ||||||||||||||||||||||||
Land development | 1,928 | 3,484 | — | 3,551 | 131 | ||||||||||||||||||||||||
Residential mortgage | 27,675 | 27,675 | 335 | 26,745 | 1,267 | ||||||||||||||||||||||||
Consumer installment | 518 | 518 | — | 602 | 1 | ||||||||||||||||||||||||
Home equity | 2,121 | 2,121 | — | 2,302 | 12 | ||||||||||||||||||||||||
Total | $ | 134,667 | $ | 165,270 | $ | 1,338 | $ | 127,876 | $ | 4,353 | |||||||||||||||||||
The following schedule presents impaired loans by classes of loans at December 31, 2013: | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||
Investment | Principal | Valuation | Annual | Income | |||||||||||||||||||||||||
Balance | Allowance | Recorded | Recognized | ||||||||||||||||||||||||||
Investment | While on | ||||||||||||||||||||||||||||
Impaired Status | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 2,517 | $ | 2,656 | $ | 728 | $ | 5,398 | $ | — | |||||||||||||||||||
Commercial real estate | 2,576 | 2,965 | 353 | 9,725 | — | ||||||||||||||||||||||||
Real estate construction | — | — | — | 56 | — | ||||||||||||||||||||||||
Land development | — | — | — | 719 | — | ||||||||||||||||||||||||
Residential mortgage | 17,408 | 17,408 | 510 | 17,689 | 1,123 | ||||||||||||||||||||||||
Subtotal | 22,501 | 23,029 | 1,591 | 33,587 | 1,123 | ||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 38,838 | 44,377 | — | 24,231 | 990 | ||||||||||||||||||||||||
Commercial real estate | 48,220 | 61,444 | — | 41,100 | 1,348 | ||||||||||||||||||||||||
Real estate construction | 371 | 478 | — | 314 | — | ||||||||||||||||||||||||
Land development | 7,170 | 11,817 | — | 9,075 | 303 | ||||||||||||||||||||||||
Residential mortgage | 8,921 | 8,921 | — | 9,147 | — | ||||||||||||||||||||||||
Consumer installment | 676 | 676 | — | 653 | — | ||||||||||||||||||||||||
Home equity | 2,648 | 2,648 | — | 2,914 | — | ||||||||||||||||||||||||
Subtotal | 106,844 | 130,361 | — | 87,434 | 2,641 | ||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 41,355 | 47,033 | 728 | 29,629 | 990 | ||||||||||||||||||||||||
Commercial real estate | 50,796 | 64,409 | 353 | 50,825 | 1,348 | ||||||||||||||||||||||||
Real estate construction | 371 | 478 | — | 370 | — | ||||||||||||||||||||||||
Land development | 7,170 | 11,817 | — | 9,794 | 303 | ||||||||||||||||||||||||
Residential mortgage | 26,329 | 26,329 | 510 | 26,836 | 1,123 | ||||||||||||||||||||||||
Consumer installment | 676 | 676 | — | 653 | — | ||||||||||||||||||||||||
Home equity | 2,648 | 2,648 | — | 2,914 | — | ||||||||||||||||||||||||
Total | $ | 129,345 | $ | 153,390 | $ | 1,591 | $ | 121,021 | $ | 3,764 | |||||||||||||||||||
The average annual recorded investment of impaired loans during 2012 was $133.0 million and was comprised of the following classes of loans: commercial - $27.7 million; commercial real estate - $58.1 million; real estate construction - $0.7 million; land development - $9.1 million; residential mortgage - $33.4 million; consumer installment - $1.1 million; and home equity - $2.9 million. Interest income recognized during 2012 while these loans were in impaired status was $3.7 million, including $1.0 million on commercial loans, $1.0 million on commercial real estate loans, $0.4 million on land development loans and $1.4 million on residential mortgage loans. | |||||||||||||||||||||||||||||
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 $30.6 million and $24.0 million at December 31, 2014 and December 31, 2013, respectively, includes confirmed losses (partial charge-offs) of $15.4 million and $20.2 million, respectively, and fair value discount adjustments of $15.2 million and $3.8 million, respectively. | |||||||||||||||||||||||||||||
Impaired loans included $19.9 million and $9.8 million at December 31, 2014 and December 31, 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 $45.7 million and $39.6 million at December 31, 2014 and December 31, 2013, respectively, of performing TDRs. | |||||||||||||||||||||||||||||
The following schedule presents the aging status of the recorded investment in loans by classes of loans at December 31, 2014 and 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) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 4,033 | $ | 743 | $ | 170 | $ | 16,418 | $ | 21,364 | $ | 1,234,534 | $ | 1,255,898 | |||||||||||||||
Commercial real estate | 7,515 | 1,383 | — | 24,966 | 33,864 | 1,170,562 | 1,204,426 | ||||||||||||||||||||||
Real estate construction | 262 | — | — | 162 | 424 | 138,316 | 138,740 | ||||||||||||||||||||||
Land development | — | — | — | 225 | 225 | 4,303 | 4,528 | ||||||||||||||||||||||
Residential mortgage | 2,126 | 54 | 557 | 6,706 | 9,443 | 988,558 | 998,001 | ||||||||||||||||||||||
Consumer installment | 3,620 | 512 | — | 500 | 4,632 | 814,746 | 819,378 | ||||||||||||||||||||||
Home equity | 3,039 | 660 | 1,346 | 1,667 | 6,712 | 562,384 | 569,096 | ||||||||||||||||||||||
Total | $ | 20,595 | $ | 3,352 | $ | 2,073 | $ | 50,644 | $ | 76,664 | $ | 4,913,403 | $ | 4,990,067 | |||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 133 | $ | — | $ | 5,427 | $ | — | $ | 5,560 | $ | 93,423 | $ | 98,983 | |||||||||||||||
Commercial real estate | 2,014 | 352 | 11,052 | — | 13,418 | 339,804 | 353,222 | ||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 14,005 | 14,005 | ||||||||||||||||||||||
Land development | — | — | 1,653 | — | 1,653 | 12,569 | 14,222 | ||||||||||||||||||||||
Residential mortgage | 156 | — | 18 | — | 174 | 112,215 | 112,389 | ||||||||||||||||||||||
Consumer installment | 55 | 3 | 454 | — | 512 | 9,680 | 10,192 | ||||||||||||||||||||||
Home equity | 636 | 106 | 1,288 | — | 2,030 | 93,120 | 95,150 | ||||||||||||||||||||||
Total | $ | 2,994 | $ | 461 | $ | 19,892 | $ | — | $ | 23,347 | $ | 674,816 | $ | 698,163 | |||||||||||||||
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 | |||||||||||||||
Loans Modified Under Troubled Debt Restructurings (TDRs) | |||||||||||||||||||||||||||||
The following schedule presents the Corporation's TDRs at December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
Performing TDRs | Non-Performing TDRs | Nonaccrual TDRs | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Commercial loan portfolio | $ | 29,179 | $ | 15,271 | $ | 32,597 | $ | 77,047 | |||||||||||||||||||||
Consumer loan portfolio | 16,485 | 3,196 | 4,594 | 24,275 | |||||||||||||||||||||||||
Total | $ | 45,664 | $ | 18,467 | $ | 37,191 | $ | 101,322 | |||||||||||||||||||||
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 | |||||||||||||||||||||
The following schedule provides information on the Corporation's TDRs that were modified during the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||
Number | Pre- | Post- | |||||||||||||||||||||||||||
of Loans | Modification | Modification | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 53 | $ | 13,781 | $ | 13,781 | ||||||||||||||||||||||||
Commercial real estate | 46 | 12,075 | 12,075 | ||||||||||||||||||||||||||
Land development | 1 | 72 | 72 | ||||||||||||||||||||||||||
Subtotal — commercial loan portfolio | 100 | 25,928 | 25,928 | ||||||||||||||||||||||||||
Consumer loan portfolio (residential mortgage) | 119 | 4,184 | 4,158 | ||||||||||||||||||||||||||
Total | 219 | $ | 30,112 | $ | 30,086 | ||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 57 | $ | 12,123 | $ | 12,123 | ||||||||||||||||||||||||
Commercial real estate | 49 | 16,222 | 16,222 | ||||||||||||||||||||||||||
Real estate construction | 4 | 575 | 575 | ||||||||||||||||||||||||||
Land development | 4 | 1,958 | 1,958 | ||||||||||||||||||||||||||
Subtotal — commercial loan portfolio | 114 | 30,878 | 30,878 | ||||||||||||||||||||||||||
Consumer loan portfolio (residential mortgage) | 85 | 4,943 | 4,840 | ||||||||||||||||||||||||||
Total | 199 | $ | 35,821 | $ | 35,718 | ||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 91 | $ | 13,720 | $ | 13,720 | ||||||||||||||||||||||||
Commercial real estate | 77 | 17,328 | 17,328 | ||||||||||||||||||||||||||
Land development | 11 | 5,494 | 5,494 | ||||||||||||||||||||||||||
Subtotal — commercial loan portfolio | 179 | 36,542 | 36,542 | ||||||||||||||||||||||||||
Consumer loan portfolio (residential mortgage) | 121 | 9,944 | 9,684 | ||||||||||||||||||||||||||
Total | 300 | $ | 46,486 | $ | 46,226 | ||||||||||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012, 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: | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Number of Loans | Principal Balance at Year End | Number of Loans | Principal Balance at Year End | Number of Loans | Principal Balance at Year End | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 7 | $ | 885 | 23 | $ | 2,745 | 10 | $ | 1,692 | ||||||||||||||||||||
Commercial real estate | 6 | 2,352 | 8 | 4,278 | 15 | 4,993 | |||||||||||||||||||||||
Real estate construction | — | — | 3 | 371 | — | — | |||||||||||||||||||||||
Land development | — | — | 2 | 1,526 | 4 | 1,157 | |||||||||||||||||||||||
Subtotal — commercial loan portfolio | 13 | 3,237 | 36 | 8,920 | 29 | 7,842 | |||||||||||||||||||||||
Consumer loan portfolio (residential mortgage) | 12 | 259 | 22 | 1,826 | 13 | 1,673 | |||||||||||||||||||||||
Total | 25 | $ | 3,496 | 58 | $ | 10,746 | 42 | $ | 9,515 | ||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||
The following schedule presents, by loan portfolio segment, the changes in the allowance for the year ended December 31, 2014 and details regarding the balance in the allowance and the recorded investment in loans at December 31, 2014 by impairment evaluation method. | |||||||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Loan | Loan | ||||||||||||||||||||||||||||
Portfolio | Portfolio | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Changes in allowance for loan losses for the year ended December 31, 2014: | |||||||||||||||||||||||||||||
Beginning balance | $ | 44,482 | $ | 30,145 | $ | 4,445 | $ | 79,072 | |||||||||||||||||||||
Provision for loan losses | 3,464 | 4,357 | (1,721 | ) | 6,100 | ||||||||||||||||||||||||
Charge-offs | (6,399 | ) | (7,830 | ) | — | (14,229 | ) | ||||||||||||||||||||||
Recoveries | 2,609 | 2,131 | — | 4,740 | |||||||||||||||||||||||||
Ending balance | $ | 44,156 | $ | 28,803 | $ | 2,724 | $ | 75,683 | |||||||||||||||||||||
Allowance for loan losses balance at December 31, 2014 attributable to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,003 | $ | 335 | $ | — | $ | 1,338 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 43,153 | 27,968 | 2,724 | 73,845 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | 500 | — | 500 | |||||||||||||||||||||||||
Total | $ | 44,156 | $ | 28,803 | $ | 2,724 | $ | 75,683 | |||||||||||||||||||||
Recorded investment (loan balance) at December 31, 2014: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 86,221 | $ | 19,681 | $ | — | $ | 105,902 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 2,517,371 | 2,366,794 | — | 4,884,165 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 480,432 | 217,731 | — | 698,163 | |||||||||||||||||||||||||
Total | $ | 3,084,024 | $ | 2,604,206 | $ | — | $ | 5,688,230 | |||||||||||||||||||||
The following presents, by loan portfolio segment, the changes in the allowance for the year ended December 31, 2013 and 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) | |||||||||||||||||||||||||||||
Changes in allowance for loan losses for the year ended December 31, 2013: | |||||||||||||||||||||||||||||
Beginning balance | $ | 49,975 | $ | 29,333 | $ | 5,183 | $ | 84,491 | |||||||||||||||||||||
Provision for loan losses | 3,895 | 7,843 | (738 | ) | 11,000 | ||||||||||||||||||||||||
Charge-offs | (12,280 | ) | (8,866 | ) | — | (21,146 | ) | ||||||||||||||||||||||
Recoveries | 2,892 | 1,835 | — | 4,727 | |||||||||||||||||||||||||
Ending balance | $ | 44,482 | $ | 30,145 | $ | 4,445 | $ | 79,072 | |||||||||||||||||||||
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 allowance attributable to acquired loans of $0.5 million at both December 31, 2014 and December 31, 2013 was primarily attributable to two consumer loan pools in the acquired loan portfolio experiencing a decline in expected cash flows. There were no material changes in expected cash flows for the remaining acquired loan pools at December 31, 2014. As part of its ongoing assessment of the acquired loan portfolio, management determined that the overall credit quality of the OAK acquired loan portfolio had improved, which resulted in an improvement in expected cash flows of loan pools in the OAK acquired commercial loan portfolio. Accordingly, management reclassified $10.0 million during 2014 from the nonaccretable difference to the accretable yield for these OAK acquired commercial loan pools, which will increase amounts recognized into interest income over the estimated remaining lives of these loan pools. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Premises and Equipment | PREMISES AND EQUIPMENT | ||||||||
A summary of premises and equipment follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Cost: | |||||||||
Land and land improvements | $ | 27,402 | $ | 21,749 | |||||
Buildings | 110,380 | 91,920 | |||||||
Equipment | 68,540 | 61,900 | |||||||
Total cost | 206,322 | 175,569 | |||||||
Accumulated depreciation | (108,826 | ) | (100,261 | ) | |||||
Total premises and equipment | $ | 97,496 | $ | 75,308 | |||||
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL |
Goodwill was $180.1 million at December 31, 2014 and $120.2 million at December 31, 2013. During 2014, the Corporation acquired Northwestern, which resulted in the recognition of $60.0 million of goodwill. Goodwill recognized in the Northwestern transaction was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Northwestern. None of the goodwill recorded in conjunction with the Northwestern acquisition is deductible for tax purposes. During 2012, the Corporation acquired 21 branches from Independent Bank, which resulted in the recognition of $6.8 million of goodwill, with $5.9 million deductible for tax purposes. Goodwill recognized in the branch acquisition transaction was primarily attributable to the premium paid by the Corporation to acquire customer core deposit accounts, which are primarily located in markets where the Corporation previously did not operate. | |
Goodwill is subject to impairment testing annually and on an interim basis if events or changes in circumstances indicate assets might be impaired. The Corporation's most recent goodwill impairment test performed as of October 31, 2014 did not indicate that an impairment of goodwill existed. The Corporation also determined that no triggering events occurred that indicated impairment from the most recent valuation date through December 31, 2014 and that the Corporation's goodwill was not impaired at December 31, 2014. |
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Other Intangible Assets | OTHER INTANGIBLE ASSETS | ||||||||||||
The following table shows the net carrying value of the Corporation's other intangible assets: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Other intangible assets: | |||||||||||||
Core deposit intangible assets | $ | 20,863 | $ | 10,001 | |||||||||
Mortgage servicing rights (MSRs) | 12,217 | 3,423 | |||||||||||
Total other intangible assets | $ | 33,080 | $ | 13,424 | |||||||||
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: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Gross original amount | $ | 31,550 | $ | 18,659 | |||||||||
Accumulated amortization | 10,687 | 8,658 | |||||||||||
Carrying amount | $ | 20,863 | $ | 10,001 | |||||||||
Amortization expense for the year ended December 31 | $ | 2,029 | $ | 1,909 | |||||||||
In conjunction with the acquisition of Northwestern in 2014, the Corporation recorded $12.9 million in core deposit intangible assets. There were no additions of core deposit intangible assets during 2013. | |||||||||||||
The estimated future amortization expense on core deposit intangible assets for the years ending after December 31, 2014 is as follows: 2015 - $3.2 million; 2016 - $2.9 million; 2017 - $2.6 million; 2018 - $2.5 million; 2019 - $2.4 million; 2020 and thereafter - $7.3 million. | |||||||||||||
Mortgage Servicing Rights (MSRs) | |||||||||||||
The following shows the net carrying value and fair value of MSRs and the total loans that the Corporation is servicing for others: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Net carrying value of MSRs | $ | 12,217 | $ | 3,423 | |||||||||
Fair value of MSRs | $ | 14,979 | $ | 6,878 | |||||||||
Loans serviced for others that have servicing rights capitalized | $ | 2,093,140 | $ | 886,730 | |||||||||
The fair value of MSRs was estimated by calculating the present value of estimated future net servicing cash flows, taking into consideration expected prepayment rates, discount rates, servicing costs and other economic factors that are based on current market conditions. The prepayment rates and the discount rate are the most significant factors affecting valuation of the MSRs. Increases in mortgage loan prepayments reduce estimated future net servicing cash flows because the life of the underlying loan is reduced. Expected loan prepayment rates are validated by a third-party model. At December 31, 2014, the weighted average coupon rate, discount rate and constant prepayment rate (CPR) of the Corporation's $881 million originated servicing portfolio was 4.28%, 8.5% and 13.6%, respectively, while the weighted average coupon rate, discount rate and CPR of the Corporation's $1.21 billion acquired servicing portfolio was 4.08%, 10.1% and 11.65%, respectively. At December 31, 2013, the weighted average coupon rate of the Corporation's originated servicing portfolio was 4.33%, the discount rate was 8.5% and the CPR was 11.3%. | |||||||||||||
The following shows activity for capitalized MSRs for the last three years: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 3,423 | $ | 3,478 | $ | 3,593 | |||||||
Acquired in Northwestern acquisition | 9,235 | — | — | ||||||||||
Additions | 1,075 | 1,528 | 2,285 | ||||||||||
Amortization | (1,316 | ) | (1,583 | ) | (2,400 | ) | |||||||
Increase in valuation allowance | (200 | ) | — | — | |||||||||
Balance at end of year | $ | 12,217 | $ | 3,423 | $ | 3,478 | |||||||
Valuation allowance at December 31 | $ | 200 | $ | — | $ | — | |||||||
MSRs are stratified into servicing assets originated by the Corporation and those acquired in acquisitions of other institutions and further stratified into relatively homogeneous pools based on products with similar characteristics. The MSR impairment valuation allowance recorded at December 31, 2014 related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. |
Deposits
Deposits | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deposits [Abstract] | |||||||||
Deposit Liabilities Disclosures | DEPOSITS | ||||||||
A summary of deposits follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Noninterest-bearing demand | $ | 1,591,661 | $ | 1,227,768 | |||||
Interest-bearing demand | 1,428,941 | 1,169,076 | |||||||
Savings | 1,720,422 | 1,393,610 | |||||||
Time deposits over $100,000 | 557,476 | 529,265 | |||||||
Other time deposits | 780,471 | 802,666 | |||||||
Total deposits | $ | 6,078,971 | $ | 5,122,385 | |||||
Excluded from total deposits are demand deposit account overdrafts (overdrafts) which have been classified as loans. At December 31, 2014 and 2013, overdrafts totaled $4.3 million and $3.3 million, respectively. At December 31, 2014, time deposits with remaining maturities of less than one year were $921 million and time deposits with remaining maturities of one year or more were $417 million. The scheduled maturities of time deposits outstanding at December 31, 2014 were as follows: 2015 - $921 million; 2016 - $174 million; 2017 - $115 million; 2018 - $59 million; and 2019 - $68 million. |
ShortTerm_Borrowings
Short-Term Borrowings | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Short-term Debt [Abstract] | |||||||||||||||||||
Short - Term Borrowings | SHORT-TERM BORROWINGS | ||||||||||||||||||
A summary of short-term borrowings, which consisted of securities sold under agreements to repurchase, FHLB advances and federal funds purchased, follows: | |||||||||||||||||||
Ending Balance at Year-End | Weighted Average Interest Rate at Year-End | Average Amount Outstanding During Year | Weighted Average Interest Rate During Year | Maximum Outstanding at Any Month-End | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
2014 | |||||||||||||||||||
Securities sold under agreements to repurchase | $ | 304,467 | 0.11 | % | $ | 326,056 | 0.12 | % | $ | 361,231 | |||||||||
FHLB advances | 60,000 | 0.25 | 6,726 | 0.27 | 60,000 | ||||||||||||||
Federal funds purchased | 25,000 | 0.4 | 2,003 | 0.4 | 25,000 | ||||||||||||||
2013 | |||||||||||||||||||
Securities sold under agreements to repurchase | $ | 327,428 | 0.15 | % | $ | 337,649 | 0.14 | % | $ | 357,976 | |||||||||
2012 | |||||||||||||||||||
Securities sold under agreements to repurchase | $ | 310,463 | 0.14 | % | $ | 312,729 | 0.14 | % | $ | 335,193 | |||||||||
Federal_Home_Loan_Bank_Advance
Federal Home Loan Bank Advances | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Federal Home Loan Banks [Abstract] | |||||||||
Federal Home Loan Bank Advances | FEDERAL HOME LOAN BANK ADVANCES | ||||||||
The Corporation had no long-term Federal Home Loan Bank (FHLB) advances outstanding at December 31, 2014 and 2013. FHLB advances are collateralized by a blanket lien on qualified one- to four-family residential mortgage loans. At December 31, 2014, the carrying value of these qualified loans was $1.04 billion. The Corporation's additional borrowing availability through the FHLB, subject to the FHLB's credit requirements and policies and based on the amount of FHLB stock owned by the Corporation, was $360 million at December 31, 2014. | |||||||||
Prepayments of fixed-rate advances are subject to prepayment fees under the provisions and conditions of the credit policy of the FHLB. On January 22, 2013, the Corporation paid off early all of its FHLB advances outstanding of $34.3 million, resulting in a prepayment fee of $0.8 million. The Corporation did not incur any prepayment fees in 2014 or 2012. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Equity | 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 December 31, 2014, there were 500,000 remaining shares available for repurchase under the Corporation's stock repurchase programs. | |
Underwritten Public Offerings 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 of this $80.5 million offering, 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 of this $57.6 million offering, 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 on Form S-3 with the Securities and Exchange Commission (SEC) for an indeterminate amount of securities, 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. As of December 31, 2014, no shares of preferred stock were issued and outstanding. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||
Dec. 31, 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: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Net unrealized gains (losses) on investment securities — available-for-sale, net of related tax expense (benefit) of $(113) at December 31, 2014, ($1,335) at December 31, 2013 and $2,301 at December 31, 2012 | $ | (210 | ) | $ | (2,480 | ) | $ | 4,274 | |||||
Pension and other postretirement benefits adjustment, net of related tax benefit of $17,362 at December 31, 2014, $9,714 at December 31, 2013 and $19,058 at December 31, 2012 | (32,243 | ) | (18,040 | ) | (35,393 | ) | |||||||
Accumulated other comprehensive loss | $ | (32,453 | ) | $ | (20,520 | ) | $ | (31,119 | ) |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||
Dec. 31, 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 (for residential mortgage loan originations held-for-sale on or after July 1, 2012) 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 Level 1 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 carrying amounts reported in the consolidated statement of financial position at December 31, 2014 and 2013 for loans held-for-sale is at fair value, as the Corporation elected the fair value option for all residential mortgage loans held-for-sale originated on or after July 1, 2012. 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 follow: | ||||||||||||||||||
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) | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Investment securities — available-for-sale: | ||||||||||||||||||
U.S. Treasury securities | $ | 8,259 | $ | — | $ | — | $ | 8,259 | ||||||||||
Government sponsored agencies | — | 263,503 | — | 263,503 | ||||||||||||||
State and political subdivisions | — | 46,227 | — | 46,227 | ||||||||||||||
Residential mortgage-backed securities | — | 239,807 | — | 239,807 | ||||||||||||||
Collateralized mortgage obligations | — | 144,383 | — | 144,383 | ||||||||||||||
Corporate bonds | — | 45,095 | — | 45,095 | ||||||||||||||
Preferred stock | — | 1,590 | — | 1,590 | ||||||||||||||
Total investment securities — available-for-sale | 8,259 | 740,605 | — | 748,864 | ||||||||||||||
Loans held-for-sale | — | 9,128 | — | 9,128 | ||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 8,259 | $ | 749,733 | $ | — | $ | 757,992 | ||||||||||
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 | ||||||||||
There were no liabilities recorded at fair value on a recurring basis at December 31, 2014 or 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 the 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 December 31, 2014 and 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. At December 31, 2014 and 2013, there was no impairment identified for core deposit intangible assets. The fair value of MSRs is 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 December 31, 2014, the Corporation recognized a $0.2 million valuation allowance related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. As a result, the MSRs related to this servicing portfolio were considered to be recorded at fair value on a nonrecurring basis. At December 31, 2013, there was no impairment identified for 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 the 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 follow: | ||||||||||||||||||
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) | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 21,323 | $ | 21,323 | ||||||||||
Other real estate/repossessed assets | — | — | 14,205 | 14,205 | ||||||||||||||
Mortgage servicing rights | — | — | 8,691 | 8,691 | ||||||||||||||
Total | $ | — | $ | — | $ | 44,219 | $ | 44,219 | ||||||||||
31-Dec-13 | ||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 28,852 | $ | 28,852 | ||||||||||
Other real estate/repossessed assets | — | — | 9,776 | 9,776 | ||||||||||||||
Total | $ | — | $ | — | $ | 38,628 | $ | 38,628 | ||||||||||
There were no liabilities recorded at fair value on a nonrecurring basis at December 31, 2014 and 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 December 31, 2014 and 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 — available-for-sale that are not measured at fair value on a recurring basis, which previously consisted of fixed-rate cumulative preferred stock issued by a bank holding company under the U.S. Government's Troubled Asset Relief Program (TARP) with no maturity date, was based on cost. This preferred stock was not traded on a public exchange and did not have a readily determinable fair value. Accordingly, the Corporation had recorded this preferred stock as a cost-method asset as prescribed by ASC 325-20, Cost Method Investments. The issuer redeemed this preferred stock during the second quarter of 2013. Because no impairment indicators were present at December 31, 2012, the Corporation was not required to estimate the fair value of this preferred stock. | ||||||||||||||||||
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. After reviewing the assumptions used to measure the fair value for its trust preferred investment securities, during 2013 the Corporation transferred its trust preferred investment securities with a fair value of $6.3 million at December 31, 2014 from nonrecurring Level 2 assets to nonrecurring Level 3 assets. | ||||||||||||||||||
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 value 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, FHLB advances 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 long-term 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 follows: | ||||||||||||||||||
Level in Fair Value Measurement Hierarchy | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||
(In thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 183,020 | $ | 183,020 | $ | 310,788 | $ | 310,788 | |||||||||
Investment securities: | ||||||||||||||||||
Available-for-sale | Level 2 | 748,864 | 748,864 | 684,570 | 684,570 | |||||||||||||
Held-to-maturity | Level 2 | 305,913 | 308,650 | 263,405 | 262,021 | |||||||||||||
Held-to-maturity | Level 3 | 10,500 | 7,090 | 10,500 | 6,250 | |||||||||||||
Nonmarketable equity securities | NA | 27,369 | 27,369 | 25,572 | 25,572 | |||||||||||||
Loans held-for-sale | Level 2 | 9,128 | 9,128 | 5,219 | 5,219 | |||||||||||||
Net loans | Level 3 | 5,612,547 | 5,623,454 | 4,568,549 | 4,575,532 | |||||||||||||
Interest receivable | Level 2 | 17,492 | 17,492 | 15,748 | 15,748 | |||||||||||||
Liabilities: | ||||||||||||||||||
Deposits without defined maturities | Level 2 | $ | 4,741,024 | $ | 4,741,024 | $ | 3,790,454 | $ | 3,790,454 | |||||||||
Time deposits | Level 3 | 1,337,947 | 1,340,015 | 1,331,931 | 1,340,746 | |||||||||||||
Interest payable | Level 2 | 755 | 755 | 868 | 868 | |||||||||||||
Short-term borrowings | Level 2 | 389,467 | 389,467 | 327,428 | 327,428 | |||||||||||||
Noninterest_Income
Noninterest Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Noninterest Income [Abstract] | |||||||||||||
Noninterest Income | NONINTEREST INCOME | ||||||||||||
The following schedule includes the major components of noninterest income during the past three years: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Service charges and fees on deposit accounts | $ | 22,414 | $ | 21,939 | $ | 19,581 | |||||||
Wealth management revenue | 16,015 | 13,989 | 11,763 | ||||||||||
Electronic banking fees | 13,480 | 12,213 | 9,793 | ||||||||||
Mortgage banking revenue | 5,041 | 5,336 | 6,597 | ||||||||||
Other fees for customer services | 3,539 | 3,288 | 2,598 | ||||||||||
Insurance commissions | 1,559 | 1,650 | 1,836 | ||||||||||
Gain on sale of investment securities | — | 1,133 | 34 | ||||||||||
Gain on sale of merchant card services | 400 | — | 1,280 | ||||||||||
Other | 647 | 861 | 1,202 | ||||||||||
Total noninterest income | $ | 63,095 | $ | 60,409 | $ | 54,684 | |||||||
Operating_Expenses
Operating Expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Operating Expenses [Abstract] | |||||||||||||
Operating Expenses | OPERATING EXPENSES | ||||||||||||
The following schedule includes the major categories of operating expenses during the past three years: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Salaries and wages | $ | 84,807 | $ | 78,014 | $ | 68,668 | |||||||
Employee benefits | 19,411 | 18,405 | 15,715 | ||||||||||
Occupancy | 15,842 | 13,934 | 12,413 | ||||||||||
Equipment and software | 15,297 | 13,734 | 13,112 | ||||||||||
Outside processing and service fees | 12,372 | 11,134 | 10,679 | ||||||||||
Professional fees | 6,125 | 3,771 | 4,347 | ||||||||||
FDIC insurance premiums | 4,307 | 4,362 | 4,320 | ||||||||||
Postage and express mail | 3,557 | 3,051 | 3,149 | ||||||||||
Advertising and marketing | 3,449 | 2,971 | 3,106 | ||||||||||
Training, travel and other employee expenses | 2,748 | 2,512 | 2,530 | ||||||||||
Intangible asset amortization | 2,029 | 1,909 | 1,569 | ||||||||||
Telephone | 1,966 | 1,940 | 1,693 | ||||||||||
Supplies | 1,897 | 1,670 | 1,567 | ||||||||||
Donations | 1,155 | 2,829 | 1,892 | ||||||||||
Credit-related expenses | 996 | 707 | 3,816 | ||||||||||
Other | 3,967 | 4,005 | 3,345 | ||||||||||
Total operating expenses | $ | 179,925 | $ | 164,948 | $ | 151,921 | |||||||
Retirement_Plans
Retirement Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Retirement Plans | RETIREMENT PLANS | ||||||||||||||||||||||||
Defined Benefit Pension Plan | |||||||||||||||||||||||||
The Corporation has a noncontributory defined benefit pension plan (Pension Plan) covering certain salaried employees. Benefits under the Pension Plan were frozen for approximately two-thirds of the Corporation's salaried employees effective June 30, 2006. Pension benefits continued unchanged for the remaining salaried employees. Normal retirement benefits under the Pension Plan are based on years of vested service, up to a maximum of thirty years, and the employee's average annual pay for the five highest consecutive years during the ten years preceding retirement, except for employees whose benefits were frozen. Benefits, for employees with less than 15 years of service or whose age plus years of service were less than 65 at June 30, 2006, will be based on years of vested service at June 30, 2006 and generally the average of the employee's salary for the five years ended June 30, 2006. At December 31, 2014, the Corporation had 179 employees who were continuing to earn benefits under the Pension Plan. Pension Plan contributions are intended to provide not only for benefits attributed to service-to-date, but also for those benefits expected to be earned in the future for employees whose benefits were not frozen at June 30, 2006. Employees hired after June 30, 2006 and employees affected by the partial freeze of the Pension Plan began receiving 4% of their eligible pay as a contribution to their 401(k) Savings Plan accounts on July 1, 2006. Pension Plan expense was zero in 2014, $1.7 million in 2013 and $1.4 million in 2012. | |||||||||||||||||||||||||
Supplemental Plan | |||||||||||||||||||||||||
The Corporation has a supplemental defined benefit pension plan, the Chemical Financial Corporation Supplemental Pension Plan (Supplemental Plan). The Corporation established the Supplemental Plan to provide payments to certain executive officers of the Corporation, as determined by the Compensation and Pension Committee. At December 31, 2014 and 2013, the only executive officer eligible for benefits under the Supplemental Plan was the Corporation's chief executive officer. The Internal Revenue Code limits both the amount of eligible compensation for benefit calculation purposes and the amount of annual benefits that may be paid from a tax-qualified retirement plan. The Supplemental Plan is designed to provide benefits to which executive officers of the Corporation would have been entitled, calculated under the provisions of the Pension Plan, as if the limits imposed by the Internal Revenue Code did not apply. The Supplemental Plan is an unfunded plan, and therefore, has no assets. The Supplemental Plan's projected benefit obligation was $2.1 million and $1.7 million at December 31, 2014 and 2013, respectively. The Supplemental Plan's accumulated benefit obligation was $2.0 million and $1.5 million at December 31, 2014 and 2013, respectively. Supplemental Plan expense totaled $0.3 million in 2014 and $0.2 million in both 2013 and 2012. | |||||||||||||||||||||||||
Postretirement Plan | |||||||||||||||||||||||||
The Corporation has a postretirement benefit plan (Postretirement Plan) that provides medical and dental benefits, upon retirement, to a limited number of active and retired employees. The majority of the retirees are required to make contributions toward the cost of their benefits based on their years of credited service and age at retirement. Beginning January 1, 2012, the Corporation amended the Postretirement Plan to extend coverage to employees who were at least age 50 as of January 1, 2012. These employees must also retire at age 60 or older, have at least twenty-five years of service with the Corporation and be participating in the active employee group health insurance plan in order to be eligible to participate in the Corporation's Postretirement Plan. Eligible employees may also cover their spouse until age 65 as long as the spouse is not offered health insurance coverage through his or her employer. Employees and their spouses eligible to participate in the Postretirement Plan will be required to make contributions toward the cost of their benefits upon retirement, with the contribution levels designed to cover the projected overall cost of these benefits over the long-term. Retiree contributions are generally adjusted annually. The accounting for these postretirement benefits anticipates changes in future cost-sharing features such as retiree contributions, deductibles, copayments and coinsurance. The Corporation reserves the right to amend, modify or terminate these benefits at any time. | |||||||||||||||||||||||||
401(k) Savings Plan | |||||||||||||||||||||||||
The Corporation's 401(k) Savings Plan provides an employer match, in addition to a 4% contribution for employees who are not grandfathered under the Pension Plan discussed above. The 401(k) Savings Plan is available to all regular employees and provides employees with tax deferred salary deductions and alternative investment options. The Corporation matches 50% of the participants' elective deferrals on the first 4% of the participants' base compensation up to the maximum amount allowed under the Internal Revenue Code. The 401(k) Savings Plan provides employees with the option to invest in the Corporation's common stock. The Corporation's match under the 401(k) Savings Plan was $1.0 million in 2014, $1.1 million in 2013 and $0.9 million in 2012. Employer contributions to the 401(k) Savings Plan for the 4% benefit for employees who are not grandfathered under the Pension Plan totaled $2.3 million in 2014, $2.3 million in 2013 and $2.0 million in 2012. The combined amount of the employer match and 4% contribution to the 401(k) Savings Plan totaled $3.3 million in 2014, $3.4 million in 2013 and $2.9 million in 2012. | |||||||||||||||||||||||||
Benefit Obligations and Plan Expenses | |||||||||||||||||||||||||
The following schedule sets forth the changes in the projected benefit obligation and plan assets of the Corporation's Pension and Postretirement Plans: | |||||||||||||||||||||||||
Pension Plan | Postretirement Plan | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Projected benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 105,914 | $ | 115,177 | $ | 3,477 | $ | 3,243 | |||||||||||||||||
Service cost | 944 | 1,247 | 18 | 18 | |||||||||||||||||||||
Interest cost | 5,167 | 4,603 | 142 | 143 | |||||||||||||||||||||
Plan amendments | — | — | — | 720 | |||||||||||||||||||||
Net actuarial (gain) loss | 21,314 | (10,926 | ) | 312 | (428 | ) | |||||||||||||||||||
Benefits paid | (4,179 | ) | (4,187 | ) | (247 | ) | (219 | ) | |||||||||||||||||
Benefit obligation at end of year | 129,160 | 105,914 | 3,702 | 3,477 | |||||||||||||||||||||
Fair value of plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 128,829 | 98,187 | — | — | |||||||||||||||||||||
Actual return on plan assets | 6,125 | 19,829 | — | — | |||||||||||||||||||||
Employer contributions | — | 15,000 | 247 | 219 | |||||||||||||||||||||
Benefits paid | (4,179 | ) | (4,187 | ) | (247 | ) | (219 | ) | |||||||||||||||||
Fair value of plan assets at end of year | 130,775 | 128,829 | — | — | |||||||||||||||||||||
Funded (unfunded) status at December 31 | $ | 1,615 | $ | 22,915 | $ | (3,702 | ) | $ | (3,477 | ) | |||||||||||||||
Accumulated benefit obligation | $ | 121,826 | $ | 99,551 | $ | 3,702 | $ | 3,477 | |||||||||||||||||
The increases in the projected and accumulated benefit obligations of the Pension Plan during 2014 were attributable to a combination of a decrease in the discount rate used to value these benefit obligations and changes in the mortality tables utilized to estimate life expectancies. The Corporation did not make a contribution to the Pension Plan in 2014. The Corporation contributed $15.0 million to the Pension Plan in 2013 and $12.0 million in 2012. The Corporation is not required to make a contribution to the Pension Plan in 2015. | |||||||||||||||||||||||||
Weighted-average rate assumptions of the Pension and Postretirement Plans follow: | |||||||||||||||||||||||||
Pension Plan | Postretirement Plan | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate used in determining benefit obligation — December 31 | 4.15 | % | 5 | % | 4.08 | % | 3.75 | % | 4.27 | % | 4.08 | % | |||||||||||||
Discount rate used in determining expense | 5 | 4.08 | 4.9 | 4.27 | 4.08 | 4.9 | |||||||||||||||||||
Expected long-term return on Pension Plan assets | 7 | 7 | 7 | — | — | — | |||||||||||||||||||
Rate of compensation increase used in determining benefit obligation — December 31 | 3.5 | 3.5 | 3.5 | — | — | — | |||||||||||||||||||
Rate of compensation increase used in determining pension expense | 3.5 | 3.5 | 3.5 | — | — | — | |||||||||||||||||||
Year 1 increase in cost of postretirement benefits | — | — | — | 8 | 8.5 | 8 | |||||||||||||||||||
The weighted-average rate assumptions of the Supplemental Plan were the same as the Pension Plan for 2014, 2013 and 2012, except for the discount rate used in determining the benefit obligation for the Supplemental Plan, which was 4.07%, 4.87% and 4.08% at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Net periodic pension cost (income) of the Pension and Postretirement Plans was as follows for the years ended December 31: | |||||||||||||||||||||||||
Pension Plan | Postretirement Plan | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Service cost | $ | 944 | $ | 1,247 | $ | 1,168 | $ | 18 | $ | 18 | $ | — | |||||||||||||
Interest cost | 5,167 | 4,603 | 4,795 | 142 | 143 | 146 | |||||||||||||||||||
Expected return on plan assets | (8,314 | ) | (7,794 | ) | (6,925 | ) | — | — | — | ||||||||||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (1 | ) | 130 | 343 | (300 | ) | |||||||||||||||
Amortization of net actuarial loss (gain) | 2,159 | 3,670 | 2,382 | (104 | ) | (73 | ) | (28 | ) | ||||||||||||||||
Net cost (income) | $ | (45 | ) | $ | 1,725 | $ | 1,419 | $ | 186 | $ | 431 | $ | (182 | ) | |||||||||||
The following schedule presents estimated future benefit payments under the Pension and Postretirement Plans for retirees already receiving benefits and future retirees, assuming they retire and begin receiving unreduced benefits as soon as they are eligible: | |||||||||||||||||||||||||
Pension Plan | Postretirement Plan | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2015 | $ | 5,693 | $ | 300 | |||||||||||||||||||||
2016 | 6,402 | 310 | |||||||||||||||||||||||
2017 | 6,297 | 310 | |||||||||||||||||||||||
2018 | 6,241 | 310 | |||||||||||||||||||||||
2019 | 6,820 | 320 | |||||||||||||||||||||||
2020 - 2024 | 36,448 | 1,510 | |||||||||||||||||||||||
Total | $ | 67,901 | $ | 3,060 | |||||||||||||||||||||
For measurement purposes for the Postretirement Plan, the annual rates of increase in the per capita cost of covered health care benefits and dental benefits for 2015 were each assumed at 8.0%. These rates were assumed to decrease gradually to 5.0% in 2020 and remain at that level thereafter. | |||||||||||||||||||||||||
The assumed health care and dental cost trend rates could have a significant effect on the amounts reported for the Postretirement Plan. A one percentage-point change in these rates would have the following effects: | |||||||||||||||||||||||||
One Percentage-Point | |||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Effect on total of service and interest cost components in 2014 | $ | 13 | $ | (12 | ) | ||||||||||||||||||||
Effect on postretirement benefit obligation as of December 31, 2014 | 327 | (289 | ) | ||||||||||||||||||||||
Pension Plan Assets | |||||||||||||||||||||||||
The assets of the Pension Plan are invested by the Wealth Management department of Chemical Bank. The investment policy and allocation of the assets of the pension trust were approved by the Compensation and Pension Committee of the board of directors of the Corporation. | |||||||||||||||||||||||||
The Pension Plan's primary investment objective is long-term growth coupled with income. In consideration of the Pension Plan's fiduciary responsibilities, emphasis is placed on quality investments with sufficient liquidity to meet benefit payments and plan expenses, as well as providing the flexibility to manage the investments to accommodate current economic and financial market conditions. To meet the Pension Plan's long-term objective within the constraints of prudent management, target ranges have been set for the three primary asset classes: an equity securities range from 60% to 70%, a debt securities range from 30% to 40%, and a cash and cash equivalents and other range from 0% to 10%. Modest asset positions outside of these targeted ranges may occur due to the repositioning of assets within industries or other activity in the financial markets. Equity securities are primarily comprised of both individual securities and equity-based mutual funds, invested in either domestic or international markets. The stocks are diversified among the major economic sectors of the market and are selected based on balance sheet strength, expected earnings growth, the management team and position within their industries, among other characteristics. Debt securities are comprised of U.S. dollar denominated bonds issued by the U.S. Treasury, U.S. government agencies and investment grade bonds issued by corporations. The notes and bonds purchased are primarily rated A or better by the major bond rating companies from diverse industries. | |||||||||||||||||||||||||
The Pension Plan's asset allocation by asset category was as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
Asset Category | 2014 | 2013 | |||||||||||||||||||||||
Equity securities | 68 | % | 70 | % | |||||||||||||||||||||
Debt securities | 30 | 29 | |||||||||||||||||||||||
Other | 2 | 1 | |||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
The following schedule sets forth the fair value of the Pension Plan's assets and the level of the valuation inputs used to value those assets at December 31, 2014 and 2013: | |||||||||||||||||||||||||
Asset Category | Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||
In Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Cash | $ | 2,594 | $ | — | $ | — | $ | 2,594 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. large- and mid-cap stocks(a) | 56,718 | — | — | 56,718 | |||||||||||||||||||||
U.S. small-cap mutual funds | 5,409 | — | — | 5,409 | |||||||||||||||||||||
International large-cap mutual funds | 14,805 | — | — | 14,805 | |||||||||||||||||||||
Emerging markets mutual funds | 6,004 | — | — | 6,004 | |||||||||||||||||||||
Chemical Financial Corporation common stock | 6,455 | — | — | 6,455 | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury and government sponsored agency bonds and notes | 998 | 2,043 | — | 3,041 | |||||||||||||||||||||
Corporate bonds(b) | — | 6,814 | — | 6,814 | |||||||||||||||||||||
Mutual funds(c) | 28,795 | — | — | 28,795 | |||||||||||||||||||||
Other | 140 | — | — | 140 | |||||||||||||||||||||
Total | $ | 121,918 | $ | 8,857 | $ | — | $ | 130,775 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Cash | $ | 902 | $ | — | $ | — | $ | 902 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. large- and mid-cap stocks(a) | 56,015 | — | — | 56,015 | |||||||||||||||||||||
U.S. small-cap mutual funds | 5,608 | — | — | 5,608 | |||||||||||||||||||||
International large-cap mutual funds | 15,504 | — | — | 15,504 | |||||||||||||||||||||
Emerging markets mutual funds | 6,360 | — | — | 6,360 | |||||||||||||||||||||
Chemical Financial Corporation common stock | 6,672 | — | — | 6,672 | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury and government sponsored agency bonds and notes | 4,600 | 2,574 | — | 7,174 | |||||||||||||||||||||
Corporate bonds(b) | — | 8,693 | — | 8,693 | |||||||||||||||||||||
Mutual funds(c) | 21,901 | — | — | 21,901 | |||||||||||||||||||||
Other | — | — | — | — | |||||||||||||||||||||
Total | $ | 117,562 | $ | 11,267 | $ | — | $ | 128,829 | |||||||||||||||||
(a) | Comprised of common stocks and mutual funds traded on U.S. Exchanges whose issuers had market capitalizations exceeding $3 billion. | ||||||||||||||||||||||||
(b) | Comprised of investment grade bonds of U.S. issuers from diverse industries. | ||||||||||||||||||||||||
(c) | Comprised primarily of fixed-income bonds issued by the U.S. Treasury and government sponsored agencies and bonds of U.S. and foreign issuers from diverse industries. | ||||||||||||||||||||||||
At both December 31, 2014 and 2013, equity securities included 210,663 shares of the Corporation's common stock. During each of 2014 and 2013, cash dividends of $0.2 million were paid on the Corporation's common stock held by the Pension Plan. The fair value of the Corporation's common stock held in the Pension Plan was $6.5 million at December 31, 2014 and $6.7 million at December 31, 2013, which represented 4.9% and 5.2% of Pension Plan assets at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||
The following sets forth the changes in accumulated other comprehensive income (loss), net of tax, related to the Corporation's Pension, Postretirement and Supplemental Plans during 2014: | |||||||||||||||||||||||||
Pension | Postretirement | Supplemental | Total | ||||||||||||||||||||||
Plan | Plan | Plan | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Accumulated other comprehensive income (loss) at beginning of year | $ | (17,979 | ) | $ | 269 | $ | (330 | ) | $ | (18,040 | ) | ||||||||||||||
Comprehensive income (loss) adjustment: | |||||||||||||||||||||||||
Prior service costs (credits) | (1 | ) | 84 | — | 83 | ||||||||||||||||||||
Net actuarial loss | (13,873 | ) | (270 | ) | (143 | ) | (14,286 | ) | |||||||||||||||||
Comprehensive income (loss) adjustment | (13,874 | ) | (186 | ) | (143 | ) | (14,203 | ) | |||||||||||||||||
Accumulated other comprehensive income (loss) at end of year | $ | (31,853 | ) | $ | 83 | $ | (473 | ) | $ | (32,243 | ) | ||||||||||||||
The estimated income (loss) that will be amortized from accumulated other comprehensive income (loss) into net periodic cost, net of tax, in 2015 is as follows: | |||||||||||||||||||||||||
Pension | Postretirement | Supplemental | Total | ||||||||||||||||||||||
Plan | Plan | Plan | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Prior service (costs) credits | $ | 3 | $ | (84 | ) | $ | — | $ | (81 | ) | |||||||||||||||
Net gain (loss) | (2,576 | ) | 1 | (170 | ) | (2,745 | ) | ||||||||||||||||||
Total | $ | (2,573 | ) | $ | (83 | ) | $ | (170 | ) | $ | (2,826 | ) |
ShareBased_Compensation_Plan
Share-Based Compensation Plan | 12 Months Ended | |||||||||||||||||||
Dec. 31, 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 years ended December 31, 2014, 2013 and 2012, share-based compensation expense related to stock options, restricted stock units and other share-based awards totaled $2.9 million, $2.9 million and $1.9 million, respectively. | ||||||||||||||||||||
During the year ended December 31, 2014, the Corporation granted options to purchase 190,011 shares of common stock, 73,468 restricted stock units and 10,126 shares of common stock to certain officers of the Corporation. At December 31, 2014, there were 379,605 shares of common stock available for future grants under the Corporation's 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. Stock options granted after 2012 vest ratably over a five-year period. Stock options granted prior to 2013 generally vest ratably over a three-year period. | ||||||||||||||||||||
The following summarizes information about stock options outstanding at December 31, 2014: | ||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of | Number | Weighted | Weighted | Number | Weighted | Weighted | ||||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | Average | ||||||||||||||
Prices | Exercise | Contractual | Exercise | Contractual | ||||||||||||||||
Per Share | Price | Term | Price | Term | ||||||||||||||||
Per Share | (In Years) | Per Share | (In Years) | |||||||||||||||||
$ 19.43 - 21.10 | 107,803 | $ | 20.36 | 5.58 | 107,803 | $ | 20.36 | 5.58 | ||||||||||||
23.78 - 25.14 | 625,420 | 24.57 | 6.17 | 376,259 | 24.44 | 5.03 | ||||||||||||||
29.45 | 183,038 | 29.45 | 9.17 | — | — | 0 | ||||||||||||||
32.28 | 121,050 | 32.28 | 0.97 | 121,050 | 32.28 | 0.97 | ||||||||||||||
$ 19.43 - 32.28 | 1,037,311 | $ | 25.9 | 6.03 | 605,112 | $ | 25.28 | 4.31 | ||||||||||||
The intrinsic value of all outstanding in-the-money stock options and exercisable in-the-money stock options was $5.1 million and $3.4 million, respectively, at December 31, 2014. The aggregate intrinsic values of outstanding and exercisable options at December 31, 2014 were calculated based on the closing market price of the Corporation's common stock on December 31, 2014 of $30.64 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 December 31, 2014, unrecognized compensation cost related to stock options totaled $2.7 million. This cost is expected to be recognized over a remaining weighted average period of approximately 3.6 years. | ||||||||||||||||||||
A summary of activity for the Corporation's stock options as of and during the three years ended December 31, 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 | Price | ||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||
Outstanding at December 31, 2011 | 162,883 | $ | 21.27 | $ | 6.55 | 815,119 | $ | 28.29 | ||||||||||||
Activity during 2012: | ||||||||||||||||||||
Granted | 229,763 | 23.78 | 7.08 | 229,763 | 23.78 | |||||||||||||||
Exercised | — | — | — | (1,532 | ) | 19.97 | ||||||||||||||
Vested | (76,103 | ) | 21.55 | 6.63 | — | — | ||||||||||||||
Expired or forfeited | (1,778 | ) | 21.48 | 6.62 | (46,128 | ) | 28.78 | |||||||||||||
Outstanding at December 31, 2012 | 314,765 | 23.03 | 6.92 | 997,222 | 27.24 | |||||||||||||||
Activity during 2013: | ||||||||||||||||||||
Granted | 244,719 | 25.14 | 7.4 | 244,719 | 25.14 | |||||||||||||||
Exercised | — | — | — | (100,145 | ) | 22.87 | ||||||||||||||
Vested | (127,443 | ) | 22.94 | 6.92 | — | — | ||||||||||||||
Expired or forfeited | (17,961 | ) | 23.34 | 6.98 | (67,806 | ) | 32.27 | |||||||||||||
Outstanding at December 31, 2013 | 414,080 | 24.29 | 7.19 | 1,073,990 | 26.84 | |||||||||||||||
Activity during 2014: | ||||||||||||||||||||
Granted | 190,011 | 29.45 | 9.64 | 190,011 | 29.45 | |||||||||||||||
Exercised | — | — | — | (72,936 | ) | 24.67 | ||||||||||||||
Vested | (148,016 | ) | 23.43 | 6.98 | — | — | ||||||||||||||
Expired or forfeited | (23,876 | ) | 25.67 | 7.79 | (153,754 | ) | 37.5 | |||||||||||||
Outstanding at December 31, 2014 | 432,199 | $ | 26.75 | $ | 8.3 | 1,037,311 | $ | 25.9 | ||||||||||||
Exercisable/vested at December 31, 2014 | 605,112 | $ | 25.28 | |||||||||||||||||
The fair value of the stock options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions. | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Expected dividend yield | 3 | % | 3.5 | % | 3.6 | % | ||||||||||||||
Risk-free interest rate | 2.16 | % | 1.34 | % | 1.18 | % | ||||||||||||||
Expected stock price volatility | 42.2 | % | 42.1 | % | 44.4 | % | ||||||||||||||
Expected life of options — in years | 7 | 7 | 6.11 | |||||||||||||||||
Weighted average fair value per share | $9.64 | $7.40 | $7.08 | |||||||||||||||||
The Corporation estimates potential forfeitures of stock option grants and adjusts compensation expense accordingly. The estimate of forfeitures is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized in the period of change and also impact the amount of share-based compensation expense to be recognized in future periods. | ||||||||||||||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and the expected life of the options granted. Expected stock volatility was based on historical volatility of the Corporation's common stock over a seven-year period. The expected life of options represents the period of time that options granted are expected to be outstanding and is based primarily upon historical experience, including option exercise behavior. | ||||||||||||||||||||
Because of the unpredictability of the assumptions required, the Black-Scholes (or any other valuation) model is incapable of accurately predicting the Corporation's common stock price or of placing an accurate present value on options to purchase its stock. In addition, the Black-Scholes model was designed to approximate value for types of options that are very different from those issued by the Corporation. In spite of any theoretical value that may be placed on a stock option grant, no value is possible under options issued by the Corporation without an increase in the market price per share of the Corporation's common stock over the market price per share of the Corporation's common stock at the date of grant. | ||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||
In addition to stock options, the Corporation also 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 and satisfaction of a service condition. 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 during the three years ended December 31, 2014 is presented below: | ||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Units | Average | |||||||||||||||||||
Grant Date | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Per Unit | ||||||||||||||||||||
Outstanding at December 31, 2011 | 130,512 | $ | 20.9 | |||||||||||||||||
Activity during 2012: | ||||||||||||||||||||
Granted | 69,772 | 22.2 | ||||||||||||||||||
Converted into shares of common stock | (35,346 | ) | 23.27 | |||||||||||||||||
Forfeited/expired | (8,428 | ) | 23.05 | |||||||||||||||||
Outstanding at December 31, 2012 | 156,510 | 20.83 | ||||||||||||||||||
Activity during 2013: | ||||||||||||||||||||
Granted | 71,768 | 23.42 | ||||||||||||||||||
Converted into shares of common stock | (36,416 | ) | 22.44 | |||||||||||||||||
Forfeited/expired | (3,330 | ) | 21.67 | |||||||||||||||||
Outstanding at December 31, 2013 | 188,532 | 21.49 | ||||||||||||||||||
Activity during 2014: | ||||||||||||||||||||
Granted | 73,468 | 27.49 | ||||||||||||||||||
Converted into shares of common stock | (52,008 | ) | 19.23 | |||||||||||||||||
Forfeited/expired | (5,673 | ) | 24.31 | |||||||||||||||||
Outstanding at December 31, 2014 | 204,319 | $ | 24.14 | |||||||||||||||||
At December 31, 2014, unrecognized compensation cost related to restricted stock unit awards totaled $2.4 million and is expected to be recognized over approximately 2.4 years. |
Federal_Income_Taxes
Federal Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Federal Income Taxes | FEDERAL INCOME TAXES | ||||||||||||
The provision for federal income taxes was less than that computed by applying the federal statutory income tax rate of 35% to pre-tax income, primarily due to tax-exempt interest income on investment securities and loans and income tax credits during 2014, 2013 and 2012. The differences between the provision for federal income taxes computed at the federal statutory income tax rate and the amounts recorded in the consolidated financial statements were as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Tax at statutory rate | $ | 31,367 | $ | 28,388 | $ | 25,133 | |||||||
Changes resulting from: | |||||||||||||
Tax-exempt interest income | (3,118 | ) | (2,746 | ) | (2,524 | ) | |||||||
Income tax credits | (1,624 | ) | (1,615 | ) | (1,561 | ) | |||||||
Other, net | 875 | 273 | (248 | ) | |||||||||
Provision for federal income taxes | $ | 27,500 | $ | 24,300 | $ | 20,800 | |||||||
Effective federal income tax rate | 30.7 | % | 30 | % | 29 | % | |||||||
The provision for federal income taxes consisted of the following: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current | $ | 29,200 | $ | 23,665 | $ | 8,132 | |||||||
Deferred | (1,700 | ) | 635 | 12,668 | |||||||||
Total | $ | 27,500 | $ | 24,300 | $ | 20,800 | |||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant temporary differences that comprise the deferred tax assets and liabilities of the Corporation were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 26,489 | $ | 27,675 | |||||||||
Acquisition-related fair value adjustments | 19,457 | 8,699 | |||||||||||
Accrued expenses not currently deductible | 7,819 | 6,288 | |||||||||||
Nonaccrual loan interest | 4,682 | 2,884 | |||||||||||
Other | 12,729 | 8,779 | |||||||||||
Total deferred tax assets | 71,176 | 54,325 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Defined benefit pension plan | 565 | 8,020 | |||||||||||
Goodwill | 5,205 | 4,680 | |||||||||||
Mortgage servicing rights | 4,276 | 1,197 | |||||||||||
Core deposit intangible assets | 5,072 | 932 | |||||||||||
Other | 3,319 | 4,011 | |||||||||||
Total deferred tax liabilities | 18,437 | 18,840 | |||||||||||
Net deferred tax assets | $ | 52,739 | $ | 35,485 | |||||||||
Management expects to realize the full benefits of the deferred tax assets recorded at December 31, 2014. The Corporation had no reserve for contingent income tax liabilities recorded at December 31, 2014 and 2013. The tax periods open to examination by the Internal Revenue Service include the years ended December 31, 2014, 2013, 2012 and 2011. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
In the normal course of business, the Corporation enters into various transactions with its customers, which are not included in its consolidated statements of financial condition. These transactions include unused commitments to extend credit, standby letters of credit and approved but undisbursed loans (undisbursed loan commitments). Unused commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the loan contract. Unused commitments to extend credit generally have fixed expiration dates or other termination clauses. Historically, the majority of the unused commitments to extend credit of Chemical Bank have not been drawn upon and, therefore, may not represent future cash requirements. Standby letters of credit are conditional commitments issued by Chemical Bank to generally guarantee the performance of a customer to a third party. Both arrangements have credit risk essentially the same as that involved in making loans to customers and are subject to the Corporation's normal credit policies, including underwriting standards and ongoing review and monitoring. Collateral obtained upon exercise of commitments is determined using management's credit evaluation of the borrowers and may include real estate, business assets, deposits and other items. Undisbursed loan commitments are not included in loans on the consolidated statements of financial position. The majority of undisbursed loan commitments will be funded and convert to a portfolio loan within a three-month period. | |
At December 31, 2014, total unused commitments to extend credit, standby letters of credit and undisbursed loan commitments were $1.08 billion, $41 million and $251 million, respectively. At December 31, 2013, total unused commitments to extend credit, standby letters of credit and undisbursed loan commitments were $878 million, $47 million and $197 million, respectively. A significant portion of the unused commitments to extend credit and standby letters of credit outstanding as of December 31, 2014 expire one year from their contract date; however, $73 million of unused commitments to extend credit extend for more than five years. | |
The Corporation's unused commitments to extend credit and standby letters of credit have been estimated to have an immaterial realizable fair value, as historically the majority of these commitments have not been drawn upon and generally Chemical Bank does not receive fees in connection with these agreements. At both December 31, 2014 and December 31, 2013, the Corporation determined that there were no potential losses from standby letters of credit, and therefore, no reserve was needed at those dates. | |
Undisbursed loan commitments of $251 million at December 31, 2014 included $24 million of residential mortgage loans that were expected to be sold in the secondary market. The Corporation locked the interest rate to the customer (mortgage loan commitment) on the $24 million of loans that were expected to be sold in the secondary market and entered into best efforts forward contracts with the secondary market on these mortgage loan commitments at December 31, 2014. Best efforts forward contracts offset the interest rate risk of market interest rates changing between the date the interest rate is locked with the customer and the date the loan is sold in the secondary market. At December 31, 2013, the Corporation had mortgage loan commitments of $11 million included in loan commitments, with best efforts forward contracts on these loans at that date. | |
The Corporation has operating leases and other noncancelable contractual obligations on buildings, equipment, computer software and other expenses that will require annual payments through 2034, including renewal option periods for those building leases that the Corporation expects to renew. Minimum payments due in each of the next five years and thereafter are as follows: 2015 - $13.8 million; 2016 - $11.3 million; 2017 - $9.3 million; 2018 - $4.2 million; 2019 - $1.9 million; 2020 and thereafter - $6.7 million. Minimum payments include estimates, where applicable, of estimated usage and annual Consumer Price Index increases of approximately 3%. Total expense recorded under operating leases and other noncancelable contractual obligations was $12.4 million in 2014, compared to $11.6 million in 2013 and $10.8 million in 2012. | |
The Corporation and Chemical Bank are subject to certain legal actions arising in the ordinary course of business. In the opinion of management, after consulting with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the financial position or results of operations of the Corporation. |
Regulatory_Capital_and_Reserve
Regulatory Capital and Reserve Requirements | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||
Regulatory Capital and Reserve Requirements | REGULATORY CAPITAL AND RESERVE REQUIREMENTS | |||||||||||||||||||||
Banking regulations require that banks maintain cash reserve balances in vault cash, with the FRB, or with certain other qualifying banks. The aggregate average amount of the regulatory balances required to be maintained by Chemical Bank was $46.3 million during 2014 and $29.3 million during 2013. During 2014, Chemical Bank satisfied its regulatory reserve requirements by maintaining vault cash balances in excess of regulatory reserve requirements. Chemical Bank was not required to maintain compensating balances with correspondent banks during 2014 or 2013. | ||||||||||||||||||||||
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. At December 31, 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. During 2014, 2013 and 2012, Chemical Bank paid dividends to the Corporation totaling $64.5 million, $24.5 million and $27.6 million, respectively. At December 31, 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 for the Corporation and Chemical Bank totaled $5.70 billion and $4.64 billion at December 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||
At December 31, 2014 and 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 the 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 to be | ||||||||||||||||||||
Required for | Well Capitalized | |||||||||||||||||||||
Capital Adequacy | Under Prompt | |||||||||||||||||||||
Purposes | Corrective Action | |||||||||||||||||||||
Regulations | ||||||||||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | |||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
Total Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | $ | 705,130 | 12.4 | % | $ | 456,302 | 8 | % | N/A | N/A | ||||||||||||
Chemical Bank | 654,031 | 11.5 | 455,633 | 8 | $ | 569,541 | 10 | % | ||||||||||||||
Tier 1 Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | 633,779 | 11.1 | 228,151 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 582,783 | 10.2 | 227,816 | 4 | 341,725 | 6 | ||||||||||||||||
Leverage Ratio: | ||||||||||||||||||||||
Corporation | 633,779 | 9.3 | 273,226 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 582,783 | 8.5 | 273,048 | 4 | 341,310 | 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 | ||||||||||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 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 community 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 income per common share and thus would be 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: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Numerator for both basic and diluted earnings per common share, net income | $ | 62,121 | $ | 56,808 | $ | 51,008 | |||||||
Denominator for basic earnings per common share, weighted average common shares outstanding | 31,367 | 28,183 | 27,492 | ||||||||||
Weighted average common stock equivalents | 221 | 169 | 91 | ||||||||||
Denominator for diluted earnings per common share | 31,588 | 28,352 | 27,583 | ||||||||||
Net income per common share: | |||||||||||||
Basic | $ | 1.98 | $ | 2.02 | $ | 1.86 | |||||||
Diluted | 1.97 | 2 | 1.85 | ||||||||||
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 240,165 for the year ended December 31, 2014, 356,328 for the year ended December 31, 2013 and 614,152 for the year ended December 31, 2012. |
Parent_Company_Only_Financial_
Parent Company Only Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Parent Company Only Financial Statements | PARENT COMPANY ONLY FINANCIAL STATEMENTS | ||||||||||||
Condensed financial statements of Chemical Financial Corporation (parent company) only follow: | |||||||||||||
December 31, | |||||||||||||
Condensed Statements of Financial Position | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash at subsidiary bank | $ | 45,820 | $ | 65,358 | |||||||||
Investment in subsidiary bank | 745,045 | 625,156 | |||||||||||
Premises and equipment | 3,601 | 3,902 | |||||||||||
Goodwill | 1,092 | 1,092 | |||||||||||
Other assets | 4,654 | 3,309 | |||||||||||
Total assets | $ | 800,212 | $ | 698,817 | |||||||||
Liabilities and Shareholders' Equity: | |||||||||||||
Other liabilities | $ | 3,079 | $ | 2,317 | |||||||||
Shareholders' equity | 797,133 | 696,500 | |||||||||||
Total liabilities and shareholders' equity | $ | 800,212 | $ | 698,817 | |||||||||
Years Ended December 31, | |||||||||||||
Condensed Statements of Income | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Income: | |||||||||||||
Cash dividends from subsidiary bank | $ | 64,468 | $ | 24,488 | $ | 27,550 | |||||||
Other income | 53 | 390 | 92 | ||||||||||
Total income | 64,521 | 24,878 | 27,642 | ||||||||||
Operating expenses | 7,200 | 4,735 | 3,773 | ||||||||||
Income before income taxes and equity in undistributed net income of subsidiary bank | 57,321 | 20,143 | 23,869 | ||||||||||
Federal income tax benefit | 2,302 | 1,556 | 1,311 | ||||||||||
Equity in undistributed net income of subsidiary bank | 2,498 | 35,109 | 25,828 | ||||||||||
Net income | $ | 62,121 | $ | 56,808 | $ | 51,008 | |||||||
Years Ended December 31, | |||||||||||||
Condensed Statements of Cash Flows | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Operating Activities: | |||||||||||||
Net income | $ | 62,121 | $ | 56,808 | $ | 51,008 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Share-based compensation expense | 2,931 | 2,854 | 1,865 | ||||||||||
Gain on sale of available-for-sale investment securities | — | (245 | ) | — | |||||||||
Depreciation of premises and equipment | 327 | 416 | 463 | ||||||||||
Equity in undistributed net income of subsidiary bank | (2,498 | ) | (35,109 | ) | (25,828 | ) | |||||||
Net (increase) decrease in other assets | 1,101 | (711 | ) | 1,033 | |||||||||
Net increase (decrease) in other liabilities | (2,519 | ) | 563 | 394 | |||||||||
Net cash provided by operating activities | 61,463 | 24,576 | 28,935 | ||||||||||
Investing Activities: | |||||||||||||
Cash paid, net of cash assumed, in business combination | (117,853 | ) | — | — | |||||||||
Purchase of available-for-sale investment securities | — | — | (4,755 | ) | |||||||||
Proceeds from redemption of available-for-sale investment securities | — | 5,000 | — | ||||||||||
Purchases of premises and equipment, net | (26 | ) | (9 | ) | (147 | ) | |||||||
Net cash provided by (used in) investing activities | (117,879 | ) | 4,991 | (4,902 | ) | ||||||||
Financing Activities: | |||||||||||||
Cash dividends paid | (29,528 | ) | (24,521 | ) | (22,566 | ) | |||||||
Proceeds from issuance of common stock, net of issuance costs | 76,175 | 53,925 | |||||||||||
Repayment of subordinated debt obligations | (10,310 | ) | — | — | |||||||||
Proceeds from directors' stock purchase plan and exercise of stock options | 1,242 | 806 | 260 | ||||||||||
Cash paid for payroll taxes upon conversion of restricted stock units | (701 | ) | (379 | ) | (248 | ) | |||||||
Net cash provided by (used in) financing activities | 36,878 | 29,831 | (22,554 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | (19,538 | ) | 59,398 | 1,479 | |||||||||
Cash and cash equivalents at beginning of year | 65,358 | 5,960 | 4,481 | ||||||||||
Cash and cash equivalents at end of year | $ | 45,820 | $ | 65,358 | $ | 5,960 | |||||||
Summary_of_Quarterly_Statement
Summary of Quarterly Statements of Income (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||
Summary of Quarterly Statements of Income (Unaudited) | SUMMARY OF QUARTERLY STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||||||||||
The following quarterly information is unaudited. However, in the opinion of management, the information reflects all adjustments that are necessary for the fair presentation of the results of operations for the periods presented. | |||||||||||||||||||||
2014 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Interest income | $ | 53,645 | $ | 55,180 | $ | 56,629 | $ | 61,807 | $ | 227,261 | |||||||||||
Interest expense | 3,866 | 3,720 | 3,561 | 3,563 | 14,710 | ||||||||||||||||
Net interest income | 49,779 | 51,460 | 53,068 | 58,244 | 212,551 | ||||||||||||||||
Provision for loan losses | 1,600 | 1,500 | 1,500 | 1,500 | 6,100 | ||||||||||||||||
Noninterest income | 13,716 | 15,801 | 15,351 | 18,227 | 63,095 | ||||||||||||||||
Operating expenses | 42,182 | 42,425 | 42,702 | 52,616 | 179,925 | ||||||||||||||||
Income before income taxes | 19,713 | 23,336 | 24,217 | 22,355 | 89,621 | ||||||||||||||||
Federal income tax expense | 5,900 | 7,100 | 7,450 | 7,050 | 27,500 | ||||||||||||||||
Net income | $ | 13,813 | $ | 16,236 | $ | 16,767 | $ | 15,305 | $ | 62,121 | |||||||||||
Net income per common share: | |||||||||||||||||||||
Basic | $ | 0.46 | $ | 0.54 | $ | 0.51 | $ | 0.47 | $ | 1.98 | |||||||||||
Diluted | 0.46 | 0.54 | 0.51 | 0.46 | 1.97 | ||||||||||||||||
Cash dividends declared per common share | 0.23 | 0.23 | 0.24 | 0.24 | 0.94 | ||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Interest income | $ | 52,379 | $ | 52,781 | $ | 53,578 | $ | 55,323 | $ | 214,061 | |||||||||||
Interest expense | 4,727 | 4,385 | 4,284 | 4,018 | 17,414 | ||||||||||||||||
Net interest income | 47,652 | 48,396 | 49,294 | 51,305 | 196,647 | ||||||||||||||||
Provision for loan losses | 3,000 | 3,000 | 3,000 | 2,000 | 11,000 | ||||||||||||||||
Noninterest income | 16,239 | 15,948 | 14,644 | 13,578 | 60,409 | ||||||||||||||||
Operating expenses | 41,957 | 41,041 | 39,545 | 42,405 | 164,948 | ||||||||||||||||
Income before income taxes | 18,934 | 20,303 | 21,393 | 20,478 | 81,108 | ||||||||||||||||
Federal income tax expense | 5,700 | 6,100 | 6,400 | 6,100 | 24,300 | ||||||||||||||||
Net income | $ | 13,234 | $ | 14,203 | $ | 14,993 | $ | 14,378 | $ | 56,808 | |||||||||||
Net income per common share: | |||||||||||||||||||||
Basic | $ | 0.48 | $ | 0.52 | $ | 0.54 | $ | 0.48 | $ | 2.02 | |||||||||||
Diluted | 0.48 | 0.51 | 0.53 | 0.48 | 2 | ||||||||||||||||
Cash dividends declared per common share | 0.21 | 0.21 | 0.22 | 0.23 | 0.87 | ||||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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. Northwestern Bank was acquired in the acquisition of Northwestern Bancorp, Inc. (Northwestern) on October 31, 2014 and was consolidated with and into Chemical Bank as of that date. 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 from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue. | |
Basis of Presentation and Principles of Consolidation | Accounting Standards Codification |
The Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) became effective on July 1, 2009. At that date, the ASC became FASB's officially recognized source of authoritative U.S. generally accepted accounting principles (GAAP) applicable to all public and non-public non-governmental entities, superseding existing FASB, American Institute of Certified Public Accountants (AICPA), Emerging Issues Task Force (EITF) and related literature. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. | |
Basis of Presentation and Principles of Consolidation | |
The accounting and reporting policies of the Corporation and its subsidiaries conform to GAAP, SEC rules and interpretive releases and prevailing practices within the banking industry. The consolidated financial statements of the Corporation include the accounts of the Corporation and its wholly owned subsidiaries. All significant income and expenses are recorded on the accrual basis. Intercompany accounts and transactions have been eliminated in preparing the consolidated financial statements. | |
The Corporation consolidates variable interest entities (VIEs) in which it is the primary beneficiary. In general, a VIE is an entity that either (i) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (ii) has a group of equity owners that are unable to make significant decisions about its activities or (iii) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns as generated by its operations. If any of these characteristics are present, the entity is subject to a variable interests consolidation model, and consolidation is based on variable interests, not on ownership of the entity's outstanding voting stock. Variable interests are defined as contractual, ownership, or other monetary interests in an entity that change with fluctuations in the entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has the power to direct the activities and absorb losses or the right to receive benefits. | |
The Corporation is a significant limited partner in three low income housing tax credit partnerships. These entities meet the definition of VIEs. The Corporation is not the primary beneficiary of any of the VIEs in which it holds a limited partnership interest; therefore, the VIEs are not consolidated in the Corporation's financial statements. Exposure to loss as a result of its involvement with VIEs at December 31, 2014 was limited to approximately $4.9 million recorded as the Corporation's investment in two of the VIEs, which includes unfunded obligations to these projects of $2.0 million. The Corporation's investment in these projects are recorded in interest receivable and other assets and the future financial obligations are recorded in interest payable and other liabilities in the consolidated statement of financial position at December 31, 2014. The Corporation had no remaining recorded investment or unfunded obligations for the third VIE at 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. | |
Business Combinations | Business Combinations |
Pursuant to the guidance of ASC Topic 805, Business Combinations (ASC 805), the Corporation recognizes assets acquired, including identified intangible assets, and the liabilities assumed in acquisitions at their fair values as of the acquisition date, with the acquisition-related transaction and restructuring costs expensed in the period incurred. | |
On October 31, 2014, the Corporation acquired Northwestern for total cash consideration of $121.0 million. The Corporation recorded $60.0 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of the identifiable net assets acquired Additionally, the Corporation recorded $12.9 million of core deposit intangible assets in conjunction with the acquisition. | |
On December 7, 2012, Chemical Bank acquired 21 branches from Independent Bank, a subsidiary of Independent Bank Corporation (branch acquisition transaction). In connection with the branch acquisition transaction, the Corporation recorded $6.8 million of goodwill, which represented the purchase price over the fair value of identifiable net assets acquired, and $5.6 million of core deposit intangible assets. | |
On April 30, 2010, the Corporation acquired O.A.K. Financial Corporation (OAK) for total consideration of $83.7 million. The Corporation recorded $43.5 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair values of the identifiable net assets acquired. Additionally, the Corporation recorded $9.8 million of other intangible assets as a result of the OAK acquisition attributable to core deposits, mortgage servicing rights and non-compete agreements acquired. | |
See Note 2 for further information regarding the Northwestern and OAK acquisitions and the branch acquisition transaction. | |
ASC 805 affords a measurement period beyond the acquisition date that allows the Corporation the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time. The Corporation anticipates that measurement period adjustments may arise from adjustments to the fair values of assets and liabilities recognized at the acquisition date for Northwestern as additional information is obtained, such as appraisals of collateral securing loans and other borrower information. In the event that a measurement period adjustment is identified, the Corporation will recognize the adjustment as part of its acquisition accounting, which may result in an adjustment to goodwill being recorded. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
For purposes of reporting cash flows, cash and cash equivalents include cash on hand and interest-bearing deposits held at the Federal Reserve Bank (FRB). | |
Investment Securities | Investment Securities |
Investment securities include investments in debt, trust preferred and preferred stock securities. Investment securities are accounted for in accordance with ASC Topic 320, Investments — Debt and Equity Securities (ASC 320), which requires investments to be classified within one of three categories (trading, held-to-maturity or available-for-sale). The Corporation held no trading investment securities at December 31, 2014 or 2013. | |
Designation as an investment security held-to-maturity is based on the Corporation's intent and ability to hold the security to maturity. Investment securities held-to-maturity are stated at cost, adjusted for purchase price premiums and discounts. Investment securities that are not held-to-maturity are accounted for as securities available-for-sale, and are stated at estimated fair value, with the aggregate unrealized gains and losses, not deemed other-than-temporary, classified as a component of accumulated other comprehensive income (loss), net of income taxes. Realized gains and losses on the sale of investment securities and other-than-temporary impairment (OTTI) charges are determined using the specific identification method and are included within noninterest income in the consolidated statements of income. Premiums and discounts on investment securities are amortized over the estimated lives of the related investment securities based on the effective interest yield method and are included in interest income in the consolidated statements of income. | |
The Corporation assesses equity and debt securities that have fair values below amortized cost basis to determine whether declines (impairment) are other-than-temporary. If the Corporation intends to sell an impaired security or it is more-likely-than-not that the Corporation will be required to sell an impaired security prior to the recovery of its amortized cost, an OTTI write-down is recognized in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Corporation does not intend to sell an impaired security and it is not more-likely-than-not that the Corporation would be required to sell an impaired security before the recovery of its amortized cost basis, then the recognition of the impairment is bifurcated if a credit loss is deemed to have occurred. For a security where the impairment is bifurcated, the impairment is separated into an amount representing the credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. In assessing whether OTTI exists, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the potential for impairments in an entire industry or sub-sector and (iv) the potential for impairments in certain economically depressed geographical locations. | |
Nonmarketable Equity Securities | Nonmarketable Equity Securities |
The Corporation is required to hold non-marketable equity securities, comprised of Federal Home Loan Bank of Indianapolis (FHLB) and FRB stock, as a condition of membership. These securities are accounted for at cost, which equals par or redemption value. These securities do not have a readily determinable fair value as their ownership is restricted and there is no market for these securities. These securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. The Corporation records these non-marketable equity securities as a component of other assets and they are periodically evaluated for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value, if applicable. The Corporation's ownership of FHLB stock totaled $19.0 million at December 31, 2014 and $17.2 million at December 31, 2013. The Corporation's ownership of FRB stock totaled $8.4 million at both December 31, 2014 and 2013. | |
Originated Loans | Originated Loans |
Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on October 31, 2014 in the acquisition of Northwestern and on April 30, 2010 in the acquisition of OAK. Originated loans also include loans acquired as part of the branch acquisition transaction 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 held for investment purposes and 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 and loans acquired on October 31, 2014 in the acquisition of Northwestern. 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 ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). Under the provisions of ASC 310-30, the Corporation aggregated acquired loans with an outstanding principal balance of $46 million at the acquisition date for the Northwestern transaction and $105 million at the acquisition date for the OAK transaction that were determined to be loans with deteriorated credit quality and, therefore, met the scope criteria set forth in ASC 310-30. Further, the Corporation understands, as outlined in the AICPA's open letter to the Office of the Chief Accountant of the SEC dated December 18, 2009 and pending further standard setting, that for acquired loans that do not meet the scope criteria of ASC 310-30, a company may elect to account for such acquired loans pursuant to the provisions of either ASC Topic 310-20, Nonrefundable Fees and Other Costs, or ASC 310-30. The Corporation elected to apply ASC 310-30, by analogy, to acquired loans that were determined not to have deteriorated credit quality with an outstanding principal balance of $461 million at the acquisition date for the Northwestern transaction and $578 million at the acquisition date for the OAK transaction and thus follows the accounting and disclosure guidance of ASC 310-30 for these loans. Accordingly, the Corporation applied ASC 310-30 to the entire loan portfolio acquired in the acquisition of Northwestern with an outstanding balance of $507 million at the acquisition date and in the acquisition of OAK with an outstanding principal balance of $683 million at the acquisition date. None of the acquired loans were classified as debt securities. | |
ASC 310-30 allows investors to aggregate acquired loans 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 4 pools for the acquisition of Northwestern and 14 pools for the acquisition of OAK 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 the 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 remaining life of the loan 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 classified 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 renewed for a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a renewal is no longer considered to be 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 loan. | |
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 their 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 recent 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, loan loss trends and giving consideration to estimated loss emergence periods and (iv) an unallocated allowance based on the imprecision in the overall allowance methodology for loans collectively evaluated for impairment. | |
The first element reflects the Corporation's estimate of probable losses based upon the systematic review of individually impaired loans in the originated commercial loan portfolio. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower and discounted collateral exposure. The Corporation measures the investment in an impaired loan based on one of three methods: the loan's observable market price; the fair value of the collateral; or the present value of expected future cash flows discounted at the loan's effective interest rate. Loans in the commercial loan portfolio that were in nonaccrual status (including nonaccrual TDRs) were valued based on the fair value of the collateral securing the loan, while performing and nonperforming TDRs in the commercial loan portfolio were valued based on the present value of expected future cash flows discounted at the loan's effective interest rate. It is the Corporation's general policy to obtain new appraisals at least annually on nonaccrual loans in the commercial loan portfolio and at least every other year on nonperforming TDRs in the commercial loan portfolio that are primarily secured by real estate and have a loan balance of greater than $0.25 million. When the Corporation determines that the fair value of the collateral is less than the carrying value of an impaired loan on nonaccrual status and a portion is deemed not collectible, the portion of the impairment that is deemed not collectible is charged off (confirmed loss) and deducted from the allowance. The remaining carrying value of the impaired loan is classified as a nonperforming loan. When the Corporation determines that the fair value of the collateral is less than the carrying value of an impaired loan but believes it is probable it will recover this impairment, the Corporation establishes a valuation allowance for such impairment. | |
The second element reflects the application of the Corporation's loan grade risk rating system. This risk rating system is similar to those employed by state and federal banking regulators. Loans in the commercial loan portfolio that are risk rated below a certain predetermined risk grade and nonaccrual residential mortgage, consumer installment and home equity loans are assigned a loss allocation factor that is based upon a historical analysis of actual loan losses incurred and a valuation of the type of collateral securing the loans. | |
The third element is determined by assigning allocations based principally upon a weighted five-year average of loss experience for each class of loan with higher weighting placed on the most recent years. Average losses may be adjusted based on current loan loss experience, delinquency trends, estimated loss emergence periods and other environmental factors. This component considers the lagging impact of historical charge-off ratios in periods where future loan charge-offs are expected to increase or decrease, trends in delinquencies and nonaccrual loans, the changing portfolio mix in terms of collateral, average loan balance, loan growth and the degree of seasoning in the various loan portfolios. Loan loss analyses are performed quarterly and certain inputs and parameters are updated as necessary to reflect the current credit environment. | |
The fourth element is based on factors that cannot be associated with a specific credit or loan class and reflects an attempt to ensure that the overall allowance appropriately reflects a margin for the imprecision necessarily inherent in the estimates of loan losses. Management maintains an unallocated allowance to recognize the uncertainty and imprecision underlying the process of estimating inherent loan losses in the loan portfolio. Determination of the probable losses inherent in the portfolio, which are not necessarily captured by the allocation methodology discussed above, involves the exercise of judgment. The unallocated allowance associated with the imprecision in the risk rating system is based on a historical evaluation of the accuracy of the risk ratings associated with loans. This unallocated portion of the allowance is judgmentally determined and generally serves to compensate for the uncertainty in estimating inherent losses, particularly in times of changing economic conditions, and also considers the inherent judgment associated with risk rating commercial loans. The unallocated portion of the allowance also takes into consideration economic conditions within the State of Michigan and nationwide, including unemployment levels, industry-wide loan delinquency rates, changing commercial and residential real estate values and inventory levels of residential lots, condominiums and single family houses held for sale. | |
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 processes, 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. | |
Mortgage Banking Operations | Mortgage Banking Operations |
The origination of residential mortgage loans is an integral component of the business of the Corporation. The Corporation generally sells conforming long-term fixed interest rate mortgage loans it originates in the secondary market. Gains on the sales of these loans are determined using the specific identification method. The Corporation sells residential mortgage loans in the secondary market on either a servicing retained or released basis. | |
The Corporation elected the fair value measurement option, as prescribed by ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), for all residential mortgage loans held-for-sale originated on or after July 1, 2012. This election allows for a more effective offset of the changes in fair value of residential mortgage loans held-for-sale and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. Residential mortgage loans held-for-sale are carried at fair value after June 30, 2012, with changes in fair value recorded through earnings. Prior to July 1, 2012, residential mortgage loans held-for-sale were carried at the lower of aggregate cost or market. The value of mortgage loans held-for-sale and other residential mortgage loan commitments to customers are hedged by utilizing best efforts forward commitments to sell loans to investors in the secondary market. Such forward commitments are generally entered into at the time customer applications are accepted to protect the value of the mortgage loans from increases in market interest rates during the period held and are generally settled with the investor in the secondary market within 90 days after entering into the forward commitment. | |
Forward loan commitments are accounted for as derivatives and recorded at fair value, with changes in fair value recorded through earnings. The Corporation recognizes revenue associated with the expected future cash flows of servicing loans for loans held-for-sale at the time a forward loan commitment is made to originate a held-for-sale loan, as required under SEC Staff Accounting Bulletin No. 109, Written Loan Commitments Recorded at Fair Value Through Earnings. | |
The Corporation accounts for mortgage servicing rights (MSRs) by separately recognizing servicing assets at the date of sale. An asset is recognized for the rights to service mortgage loans that are created by the origination of mortgage loans that are sold with the servicing retained by the Corporation. The Corporation's MSRs are included in other intangible assets in the statement of financial condition. The Corporation measures its MSRs at the lower of amortized cost or fair value and amortizes MSRs in proportion to and over the period of net servicing income. Unexpected prepayments of mortgage loans result in increased amortization of MSRs, as the remaining book value of the MSRs is expensed at the time of prepayment. The Corporation assesses MSRs for impairment on a quarterly basis based on fair value measurements. For purposes of measuring impairment, MSRs are stratified into relatively homogeneous pools based on characteristics such as period of origination, maturity date and interest rates. MSRs are also stratified between servicing assets originated by the Corporation and those acquired in acquisitions of other institutions. Any temporary impairment of MSRs is recognized as a valuation allowance, resulting in a reduction of mortgage banking revenue. The valuation allowance is recovered when impairment that is believed to be temporary no longer exists. Other-than-temporary impairments are recognized if the recoverability of the carrying value is determined to be remote. When this occurs, the unrecoverable portion of the valuation allowance is recorded as a direct write-down to the carrying value of MSRs. This direct write-down permanently reduces the carrying value of the MSRs, precluding recognition of subsequent recoveries, and results in a reduction of mortgage banking revenue. For purposes of measuring the fair value of MSRs, the Corporation utilizes a third-party modeling software program which is periodically validated by using valuations received from third-party valuation specialists. Servicing income is recognized when earned and is offset by the amortization of MSRs. | |
Premises and Equipment | Premises and Equipment |
Land is recorded at cost. Premises and equipment are stated at cost less accumulated depreciation. Premises and equipment are depreciated over the estimated useful lives of the assets. The estimated useful lives are generally 25 to 40 years for buildings and three to ten years for all other depreciable assets. Depreciation is computed on the straight-line method. Maintenance and repairs are charged to expense as incurred. | |
Other Real Estate | Other Real Estate |
Other real estate (ORE) is primarily comprised of commercial and residential real estate properties, including vacant land and development properties, obtained in partial or total satisfaction of loan obligations. ORE also includes closed branch offices that are held for sale. ORE is recorded at the lower of cost or the estimated fair value of the property, less anticipated selling costs, based upon the property's appraised value at the date of transfer to ORE and management's estimate of the fair value of the collateral, with any difference between the net realizable value of the property and the carrying value of the loan charged to the allowance for loan losses. Subsequent changes in the fair value of ORE are recognized as adjustments to the carrying amount, not to exceed the initial carrying value of the assets at the time of transfer. Changes in the fair value of ORE, subsequent to the initial transfer to ORE, and costs incurred to maintain ORE are recorded in other operating expenses on the consolidated statements of income. Gains or losses resulting from the sale of ORE are also recognized in other operating expenses on the date of sale. ORE totaling $14.8 million and $9.5 million at December 31, 2014 and 2013, respectively, was included in the consolidated statements of financial position in interest receivable and other assets. ORE at December 31, 2014 included $0.9 million related to closed branch offices. | |
Goodwill and Other Intangible Assets | Other Intangible Assets |
Intangible assets consist of core deposit intangible assets and MSRs. Core deposit intangible assets arose as the result of business combinations or other acquisitions and are amortized over periods ranging from 10 to 15 years, primarily on an accelerated basis, as applicable. | |
Goodwill | |
Goodwill is not amortized, but rather is subject to impairment tests annually, or more frequently if triggering events occur and indicate potential impairment. The Corporation's annual goodwill impairment test was performed as of October 31, 2014. The Corporation elected to bypass the qualitative assessment of goodwill impairment that became acceptable as a result of FASB Accounting Standards Update (ASU) 2011-08, Testing Goodwill for Impairment (ASU 2011-08) and performed Step 1 of the goodwill impairment test as of October 31, 2014, consistent with the Corporation's historical practice. | |
The income and market approach methodologies prescribed in ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), were utilized to estimate the value of the Corporation's goodwill under Step 1 of the goodwill impairment test. The income approach quantifies the present value of future economic benefits by capitalizing or discounting the cash flows of a business. This approach considers projected dividends, earnings, dividend paying capacity and future residual value. The market approach estimates the fair value of the entity by comparing it to similar companies that have recently been acquired or companies that are publicly traded on an organized exchange. The market approach includes a comparison of the financial condition of the entity against the financial characteristics and pricing information of comparable companies. As a result of performing the Step 1 goodwill impairment evaluation, the Corporation determined that its goodwill was not impaired at October 31, 2014.The Corporation also determined that no triggering events occurred that indicated impairment from the most recent valuation date through December 31, 2014 and that the Corporation's goodwill was not impaired at December 31, 2014. | |
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. | |
Short-term Borrowings | Short-term Borrowings |
Short-term borrowings are comprised of securities sold under agreements to repurchase with customers, federal funds purchased and short-term Federal Home Loan Bank advances with original scheduled maturities of one year or less. Securities sold under agreements to repurchase are collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated statements of financial position. The dollar amount of the securities underlying the agreements remain in the Corporation's investment securities portfolio. The Corporation's securities sold under agreements to repurchase are considered a stable source of liquidity, much like its core deposit base, and are generally only provided to customers that have an established banking relationship with Chemical Bank. | |
Federal Home Loan Bank Advances | Federal Home Loan Bank Advances |
Federal Home Loan Bank (FHLB) advances are borrowings from the FHLB to fund short-term liquidity needs as well as a portion of the loan and investment securities portfolios. These advances are secured, under a blanket security agreement, by first lien residential mortgage loans with an aggregate book value equal to at least 145% of the FHLB advances and the FHLB stock owned by the Corporation. FHLB advances with an original maturity of one year or less are classified as short-term and FHLB advances with an original maturity of more than one year are classified as long-term. | |
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 December 31, 2014 and 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. | |
Pension and Postretirement Benefit Plan Actuarial Assumptions | Pension and Postretirement Benefit Plan Actuarial Assumptions |
The Corporation's defined benefit pension, supplemental pension and postretirement benefit obligations and related costs are calculated using actuarial concepts and measurements. Two critical assumptions, the discount rate and the expected long-term rate of return on plan assets, are important elements of expense and/or benefit obligation measurements. Other assumptions involve employee demographic factors such as retirement patterns, mortality, turnover and the rate of future compensation increases, as well as future health care costs. The Corporation evaluates all assumptions annually. Mortality assumptions at December 31, 2014 were based on the new RP-2014 mortality tables as prescribed by the Pension Protection Act of 2006. The new mortality tables are expected to result in increases in pension, supplemental pension and postretirement benefit expenses. | |
The discount rate enables the Corporation to state expected future benefit payments as a present value on the measurement date. The Corporation determined the discount rate at December 31, 2014 and 2013 by utilizing the results from a discount rate model that involves selecting a portfolio of bonds to settle the projected benefit payments of each plan. The selected bond portfolios are derived from a universe of corporate bonds rated at Aa quality. After a bond portfolio is selected, a single rate is determined that equates the market value of the bonds purchased to the discounted value of the plan's benefit payments which represents the discount rate. A lower discount rate increases the present value of benefit obligations and increases pension, supplemental pension and postretirement benefit expenses. | |
To determine the expected long-term rate of return on defined benefit pension plan assets, the Corporation considers the current asset allocation of the defined benefit pension plan, as well as historical and expected returns on each asset class. A lower expected rate of return on defined benefit pension plan assets will increase pension expense. | |
The Corporation recognizes the over- or under-funded status of a plan as an other asset or other liability in the consolidated statements of financial position as measured by the difference between the fair value of the plan assets and the projected benefit obligation. Unrecognized prior service costs and actuarial gains and losses are recognized as a component of accumulated other comprehensive income (loss). The Corporation measures defined benefit plan assets and obligations as of December 31. | |
Advertising Costs | Advertising Costs |
Advertising costs are expensed as incurred. | |
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. | |
The Corporation and its subsidiaries file a consolidated federal income tax return. The provision for federal income taxes is based on income and expenses, as reported in the consolidated financial statements, rather than amounts reported on the Corporation's federal income tax return. The difference between the federal statutory income tax rate and the Corporation's effective federal income tax rate is primarily a function of the proportion of the Corporation's interest income exempt from federal taxation, nondeductible interest expense and other nondeductible expenses relative to pretax income and tax credits. When income and expenses are recognized in different periods for tax purposes than for book purposes, deferred tax assets and liabilities are recognized for the future tax consequences attributable to the temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Differences in the tax and book carrying amounts of assets and liabilities can also be generated when the Corporation acquires other banks or bank branches. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date of the change. | |
On a quarterly basis, management assesses the reasonableness of its effective federal tax rate based upon its 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 December 31, 2014 and 2013. | |
Comprehensive Income | Comprehensive Income |
Comprehensive income of the Corporation includes net income and adjustments to shareholders' equity for changes in unrealized gains and losses on investment securities available-for-sale and changes in the net actuarial gain/loss for the Corporation's defined benefit pension and postretirement plans, net of income taxes. The Corporation presents comprehensive income as a component in the consolidated statements of changes in shareholders' equity and the components of other comprehensive income separately in the consolidated statements of comprehensive income. | |
Adopted and Pending Accounting Pronouncements | Adopted Accounting Pronouncements |
Obligations Resulting from Joint and Several Liability Arrangements | |
In February 2013, the 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, as compared to 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 $0.4 million during the year ended December 31, 2014. While the adoption of ASU 2014-01 requires retrospective application to all periods presented, the Corporation did not restate income tax expenses for the years ended December 31, 2013 and December 31, 2012 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 $4.9 million at December 31, 2014 and $3.1 million at December 31, 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 on January 1, 2015 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. | |
Government-Guaranteed Mortgage Loans | |
In August 2014, the FASB issued ASU 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-14). ASU 2014-14 provides clarifying guidance related to how creditors classify government-guaranteed loans upon foreclosure. Upon foreclosure of a government-guaranteed mortgage loan, the loan should be derecognized and a separate other receivable should be recognized if the following conditions are met: (i) the loan has a government guarantee that is not separable from the loan before foreclosure; (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor at the time of foreclosure. ASU 2014-14 is effective for public companies for interim and annual periods beginning after December 15, 2014. An entity should adopt using either the modified retrospective method or the prospective transition method. An entity must apply the same method elected under ASU 2014-04. Early adoption is permitted if the entity has already adopted ASU 2014-04. The adoption of ASU 2014-14 on January 1, 2015 is not expected to have a material impact on the Corporation's consolidated financial condition or results of operations. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
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: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Northwestern | OAK | Total | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at beginning of period | $ | — | $ | 32,610 | $ | 32,610 | $ | 49,390 | |||||||||
Addition attributable to Northwestern transaction | 110,003 | — | 110,003 | — | |||||||||||||
Additions, net of reductions* | (1,605 | ) | 5,411 | 3,806 | (29 | ) | |||||||||||
Accretion recognized in interest income | (3,723 | ) | (14,735 | ) | (18,458 | ) | (16,876 | ) | |||||||||
Reclassification from nonaccretable difference | — | 10,000 | 10,000 | 125 | |||||||||||||
Balance at end of period | $ | 104,675 | $ | 33,286 | $ | 137,961 | $ | 32,610 | |||||||||
* | Represents additions in 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. | ||||||||||||||||
Northwestern Bancorp [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | Unaudited Pro Forma Combined Results of Operations | ||||||||||||||||
The following unaudited pro forma combined results of operations of Chemical and Northwestern presents results as if the acquisition had been completed as of the beginning of each period indicated. The unaudited pro forma combined results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that Chemical would have reported had this transaction been completed as of the dates and for the periods presented, nor are they necessarily indicative of future results. In particular, no adjustments have been made to eliminate the amount of Northwestern's provision for loan losses incurred prior to the acquisition date that would not have been necessary had the acquired loans been recorded at fair value as of the beginning of each period indicated. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded. | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Interest income | $ | 247,748 | $ | 241,499 | |||||||||||||
Interest expense | 16,221 | 20,014 | |||||||||||||||
Net interest income | 231,527 | 221,485 | |||||||||||||||
Provision for loan losses | 6,825 | 18,329 | |||||||||||||||
Net interest income after provision for loan losses | 224,702 | 203,156 | |||||||||||||||
Noninterest income | 79,229 | 82,492 | |||||||||||||||
Operating expenses | 201,289 | 206,025 | |||||||||||||||
Income before income taxes | 102,642 | 79,623 | |||||||||||||||
Federal income tax expense | 32,209 | 23,777 | |||||||||||||||
Net income | $ | 70,433 | $ | 55,846 | |||||||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 2.25 | $ | 1.98 | |||||||||||||
Diluted | 2.23 | 1.97 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 31,367 | 28,183 | |||||||||||||||
Diluted | 31,588 | 28,352 | |||||||||||||||
Purchase Accounting Fair Value Adjustments [Table Text Block] | The summary computation of the purchase price, including adjustments to reflect Northwestern’s assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Northwestern is presented below. The acquisition accounting presented below may be further adjusted during a measurement period of up to one year beyond the acquisition date that provides the Corporation with the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time. | ||||||||||||||||
A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands): | |||||||||||||||||
Cash paid to acquire outstanding stock | $ | 119,428 | |||||||||||||||
Cash paid for stock option cancellation agreements | 1,580 | ||||||||||||||||
Cash paid in acquisition | $ | 121,008 | |||||||||||||||
Net assets acquired: | |||||||||||||||||
Northwestern shareholders' equity | $ | 70,081 | |||||||||||||||
Adjustments to reflect fair value of net assets acquired: | |||||||||||||||||
Loans | (32,500 | ) | |||||||||||||||
Allowance for loan losses | 16,453 | ||||||||||||||||
Deferred tax assets, net | 5,787 | ||||||||||||||||
Premises and equipment | (8,961 | ) | |||||||||||||||
Core deposit intangibles | 12,891 | ||||||||||||||||
Mortgage servicing rights | 1,568 | ||||||||||||||||
Goodwill | (2,050 | ) | |||||||||||||||
Other real estate | (800 | ) | |||||||||||||||
Estimated losses on sold loans | (1,650 | ) | |||||||||||||||
Other assets and other liabilities | 225 | ||||||||||||||||
Fair value or adjusted net assets acquired | 61,044 | ||||||||||||||||
Goodwill recognized as a result of the Northwestern transaction | $ | 59,964 | |||||||||||||||
Schedule of Purchase Price Allocation [Table Text Block] | Allocation of Purchase Price | ||||||||||||||||
The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Northwestern were as follows (in thousands): | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 106,748 | |||||||||||||||
Investment securities | 230,358 | ||||||||||||||||
Loans | 475,285 | ||||||||||||||||
Premises and equipment | 18,770 | ||||||||||||||||
Deferred tax asset, net | 8,557 | ||||||||||||||||
Interest receivable and other assets | 14,211 | ||||||||||||||||
Goodwill | 59,964 | ||||||||||||||||
Core deposit intangible asset | 12,891 | ||||||||||||||||
Mortgage servicing rights asset | 9,235 | ||||||||||||||||
Assets acquired, at fair value | 936,019 | ||||||||||||||||
Liabilities | |||||||||||||||||
Deposits | 794,447 | ||||||||||||||||
Subordinated debt obligation | 10,310 | ||||||||||||||||
Interest payable and other liabilities | 10,254 | ||||||||||||||||
Total liabilities acquired, at fair value | 815,011 | ||||||||||||||||
Total cash purchase price | $ | 121,008 | |||||||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 December 31, 2014 and 2013: | ||||||||||||||||||||||||
Investment Securities Available-for-Sale | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 8,272 | $ | — | $ | 13 | $ | 8,259 | |||||||||||||||||
Government sponsored agencies | 263,658 | 356 | 511 | 263,503 | |||||||||||||||||||||
State and political subdivisions | 45,157 | 1,087 | 17 | 46,227 | |||||||||||||||||||||
Residential mortgage-backed securities | 240,465 | 885 | 1,543 | 239,807 | |||||||||||||||||||||
Collateralized mortgage obligations | 145,316 | 261 | 1,194 | 144,383 | |||||||||||||||||||||
Corporate bonds | 44,930 | 213 | 48 | 45,095 | |||||||||||||||||||||
Preferred stock | 1,389 | 201 | — | 1,590 | |||||||||||||||||||||
Total | $ | 749,187 | $ | 3,003 | $ | 3,326 | $ | 748,864 | |||||||||||||||||
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 | |||||||||||||||||
Held-to-maturity Securities | |||||||||||||||||||||||||
Investment Securities Held-to-Maturity | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
State and political subdivisions | $ | 305,913 | $ | 7,294 | $ | 4,557 | $ | 308,650 | |||||||||||||||||
Trust preferred securities | 10,500 | — | 3,410 | 7,090 | |||||||||||||||||||||
Total | $ | 316,413 | $ | 7,294 | $ | 7,967 | $ | 315,740 | |||||||||||||||||
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 | |||||||||||||||||
Amortized cost and fair value of debt securities by contractual maturity | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Investment Securities Available-for-Sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 194,598 | $ | 194,475 | |||||||||||||||||||||
Due after one year through five years | 487,952 | 487,511 | |||||||||||||||||||||||
Due after five years through ten years | 61,825 | 61,887 | |||||||||||||||||||||||
Due after ten years | 3,423 | 3,401 | |||||||||||||||||||||||
Preferred stock | 1,389 | 1,590 | |||||||||||||||||||||||
Total | $ | 749,187 | $ | 748,864 | |||||||||||||||||||||
Investment Securities Held-to-Maturity: | |||||||||||||||||||||||||
Due in one year or less | $ | 37,069 | $ | 37,222 | |||||||||||||||||||||
Due after one year through five years | 131,711 | 134,918 | |||||||||||||||||||||||
Due after five years through ten years | 96,736 | 98,774 | |||||||||||||||||||||||
Due after ten years | 50,897 | 44,826 | |||||||||||||||||||||||
Total | $ | 316,413 | $ | 315,740 | |||||||||||||||||||||
Summary of continuous unrealized loss position of securities | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 8,259 | $ | 13 | $ | — | $ | — | $ | 8,259 | $ | 13 | |||||||||||||
Government sponsored agencies | 166,963 | 406 | 31,927 | 105 | 198,890 | 511 | |||||||||||||||||||
State and political subdivisions | 62,310 | 3,348 | 36,847 | 1,226 | 99,157 | 4,574 | |||||||||||||||||||
Residential mortgage-backed securities | 17,276 | 52 | 180,194 | 1,491 | 197,470 | 1,543 | |||||||||||||||||||
Collateralized mortgage obligations | 63,077 | 179 | 31,620 | 1,015 | 94,697 | 1,194 | |||||||||||||||||||
Corporate bonds | — | — | 14,952 | 48 | 14,952 | 48 | |||||||||||||||||||
Trust preferred securities | — | — | 7,090 | 3,410 | 7,090 | 3,410 | |||||||||||||||||||
Preferred stock | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 317,885 | $ | 3,998 | $ | 302,630 | $ | 7,295 | $ | 620,515 | $ | 11,293 | |||||||||||||
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 | |||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Summary of loans under portfolio | A summary of loans follows: | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 1,354,881 | $ | 1,176,307 | |||||||||||||||||||||||||
Commercial real estate | 1,557,648 | 1,232,658 | |||||||||||||||||||||||||||
Real estate construction | 152,745 | 89,795 | |||||||||||||||||||||||||||
Land development | 18,750 | 20,066 | |||||||||||||||||||||||||||
Subtotal | 3,084,024 | 2,518,826 | |||||||||||||||||||||||||||
Consumer loan portfolio: | |||||||||||||||||||||||||||||
Residential mortgage | 1,110,390 | 960,423 | |||||||||||||||||||||||||||
Consumer installment | 829,570 | 644,769 | |||||||||||||||||||||||||||
Home equity | 664,246 | 523,603 | |||||||||||||||||||||||||||
Subtotal | 2,604,206 | 2,128,795 | |||||||||||||||||||||||||||
Total loans | $ | 5,688,230 | $ | 4,647,621 | |||||||||||||||||||||||||
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 December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Real Estate | Land | Total | |||||||||||||||||||||||||
Construction | Development | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | $ | 1,171,817 | $ | 1,114,529 | $ | 134,668 | $ | 2,952 | $ | 2,423,966 | |||||||||||||||||||
Risk Grade 6 | 37,800 | 34,996 | 1,408 | 738 | 74,942 | ||||||||||||||||||||||||
Risk Grade 7 | 29,863 | 29,935 | 2,502 | 613 | 62,913 | ||||||||||||||||||||||||
Risk Grade 8 | 16,417 | 24,958 | 162 | 225 | 41,762 | ||||||||||||||||||||||||
Risk Grade 9 | 1 | 8 | — | — | 9 | ||||||||||||||||||||||||
Subtotal | 1,255,898 | 1,204,426 | 138,740 | 4,528 | 2,603,592 | ||||||||||||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Risk Grades 1-5 | 76,780 | 321,018 | 14,005 | 11,789 | 423,592 | ||||||||||||||||||||||||
Risk Grade 6 | 12,687 | 8,698 | — | 583 | 21,968 | ||||||||||||||||||||||||
Risk Grade 7 | 4,089 | 12,478 | — | 197 | 16,764 | ||||||||||||||||||||||||
Risk Grade 8 | 5,427 | 11,028 | — | 1,653 | 18,108 | ||||||||||||||||||||||||
Risk Grade 9 | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 98,983 | 353,222 | 14,005 | 14,222 | 480,432 | ||||||||||||||||||||||||
Total | $ | 1,354,881 | $ | 1,557,648 | $ | 152,745 | $ | 18,750 | $ | 3,084,024 | |||||||||||||||||||
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 | |||||||||||||||||||
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 December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
Residential Mortgage | Consumer | Home Equity | Total | ||||||||||||||||||||||||||
Installment | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Originated Loans: | |||||||||||||||||||||||||||||
Performing | $ | 987,542 | $ | 818,878 | $ | 566,083 | $ | 2,372,503 | |||||||||||||||||||||
Nonperforming | 10,459 | 500 | 3,013 | 13,972 | |||||||||||||||||||||||||
Subtotal | 998,001 | 819,378 | 569,096 | 2,386,475 | |||||||||||||||||||||||||
Acquired Loans: | |||||||||||||||||||||||||||||
Performing | 111,101 | 10,174 | 94,696 | 215,971 | |||||||||||||||||||||||||
Nonperforming | 1,288 | 18 | 454 | 1,760 | |||||||||||||||||||||||||
Subtotal | 112,389 | 10,192 | 95,150 | 217,731 | |||||||||||||||||||||||||
Total | $ | 1,110,390 | $ | 829,570 | $ | 664,246 | $ | 2,604,206 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Summary of nonperforming loans | A summary of nonperforming loans follows: | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||||
Commercial | $ | 16,418 | $ | 18,374 | |||||||||||||||||||||||||
Commercial real estate | 24,966 | 28,598 | |||||||||||||||||||||||||||
Real estate construction | 162 | 371 | |||||||||||||||||||||||||||
Land development | 225 | 2,309 | |||||||||||||||||||||||||||
Residential mortgage | 6,706 | 8,921 | |||||||||||||||||||||||||||
Consumer installment | 500 | 676 | |||||||||||||||||||||||||||
Home equity | 1,667 | 2,648 | |||||||||||||||||||||||||||
Total nonaccrual loans | 50,644 | 61,897 | |||||||||||||||||||||||||||
Accruing loans contractually past due 90 days or more as to interest or principal payments: | |||||||||||||||||||||||||||||
Commercial | 170 | 536 | |||||||||||||||||||||||||||
Commercial real estate | — | 190 | |||||||||||||||||||||||||||
Residential mortgage | 557 | 537 | |||||||||||||||||||||||||||
Home equity | 1,346 | 734 | |||||||||||||||||||||||||||
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 2,073 | 1,997 | |||||||||||||||||||||||||||
Nonperforming TDRs: | |||||||||||||||||||||||||||||
Commercial loan portfolio | 15,271 | 13,414 | |||||||||||||||||||||||||||
Consumer loan portfolio | 3,196 | 4,676 | |||||||||||||||||||||||||||
Total nonperforming TDRs | 18,467 | 18,090 | |||||||||||||||||||||||||||
Total nonperforming loans | $ | 71,184 | $ | 81,984 | |||||||||||||||||||||||||
Schedule of Impaired loans by classes | The following schedule presents impaired loans by classes of loans at December 31, 2014: | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest Income | |||||||||||||||||||||||||
Investment | Principal | Valuation | Annual | Recognized | |||||||||||||||||||||||||
Balance | Allowance | Recorded | While on | ||||||||||||||||||||||||||
Investment | Impaired Status | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 966 | $ | 1,040 | $ | 293 | $ | 2,117 | $ | — | |||||||||||||||||||
Commercial real estate | 2,587 | 2,927 | 710 | 3,699 | — | ||||||||||||||||||||||||
Real estate construction | — | — | — | — | — | ||||||||||||||||||||||||
Land development | — | — | — | — | — | ||||||||||||||||||||||||
Residential mortgage | 19,681 | 19,681 | 335 | 19,740 | 1,252 | ||||||||||||||||||||||||
Subtotal | 23,234 | 23,648 | 1,338 | 25,556 | 1,252 | ||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 38,094 | 44,557 | — | 39,020 | 1,375 | ||||||||||||||||||||||||
Commercial real estate | 60,616 | 82,693 | — | 49,676 | 1,567 | ||||||||||||||||||||||||
Real estate construction | 162 | 255 | — | 164 | — | ||||||||||||||||||||||||
Land development | 1,928 | 3,484 | — | 3,551 | 131 | ||||||||||||||||||||||||
Residential mortgage | 7,994 | 7,994 | — | 7,005 | 15 | ||||||||||||||||||||||||
Consumer installment | 518 | 518 | — | 602 | 1 | ||||||||||||||||||||||||
Home equity | 2,121 | 2,121 | — | 2,302 | 12 | ||||||||||||||||||||||||
Subtotal | 111,433 | 141,622 | — | 102,320 | 3,101 | ||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 39,060 | 45,597 | 293 | 41,137 | 1,375 | ||||||||||||||||||||||||
Commercial real estate | 63,203 | 85,620 | 710 | 53,375 | 1,567 | ||||||||||||||||||||||||
Real estate construction | 162 | 255 | — | 164 | — | ||||||||||||||||||||||||
Land development | 1,928 | 3,484 | — | 3,551 | 131 | ||||||||||||||||||||||||
Residential mortgage | 27,675 | 27,675 | 335 | 26,745 | 1,267 | ||||||||||||||||||||||||
Consumer installment | 518 | 518 | — | 602 | 1 | ||||||||||||||||||||||||
Home equity | 2,121 | 2,121 | — | 2,302 | 12 | ||||||||||||||||||||||||
Total | $ | 134,667 | $ | 165,270 | $ | 1,338 | $ | 127,876 | $ | 4,353 | |||||||||||||||||||
The following schedule presents impaired loans by classes of loans at December 31, 2013: | |||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||
Investment | Principal | Valuation | Annual | Income | |||||||||||||||||||||||||
Balance | Allowance | Recorded | Recognized | ||||||||||||||||||||||||||
Investment | While on | ||||||||||||||||||||||||||||
Impaired Status | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Impaired loans with a valuation allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 2,517 | $ | 2,656 | $ | 728 | $ | 5,398 | $ | — | |||||||||||||||||||
Commercial real estate | 2,576 | 2,965 | 353 | 9,725 | — | ||||||||||||||||||||||||
Real estate construction | — | — | — | 56 | — | ||||||||||||||||||||||||
Land development | — | — | — | 719 | — | ||||||||||||||||||||||||
Residential mortgage | 17,408 | 17,408 | 510 | 17,689 | 1,123 | ||||||||||||||||||||||||
Subtotal | 22,501 | 23,029 | 1,591 | 33,587 | 1,123 | ||||||||||||||||||||||||
Impaired loans with no related valuation allowance: | |||||||||||||||||||||||||||||
Commercial | 38,838 | 44,377 | — | 24,231 | 990 | ||||||||||||||||||||||||
Commercial real estate | 48,220 | 61,444 | — | 41,100 | 1,348 | ||||||||||||||||||||||||
Real estate construction | 371 | 478 | — | 314 | — | ||||||||||||||||||||||||
Land development | 7,170 | 11,817 | — | 9,075 | 303 | ||||||||||||||||||||||||
Residential mortgage | 8,921 | 8,921 | — | 9,147 | — | ||||||||||||||||||||||||
Consumer installment | 676 | 676 | — | 653 | — | ||||||||||||||||||||||||
Home equity | 2,648 | 2,648 | — | 2,914 | — | ||||||||||||||||||||||||
Subtotal | 106,844 | 130,361 | — | 87,434 | 2,641 | ||||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Commercial | 41,355 | 47,033 | 728 | 29,629 | 990 | ||||||||||||||||||||||||
Commercial real estate | 50,796 | 64,409 | 353 | 50,825 | 1,348 | ||||||||||||||||||||||||
Real estate construction | 371 | 478 | — | 370 | — | ||||||||||||||||||||||||
Land development | 7,170 | 11,817 | — | 9,794 | 303 | ||||||||||||||||||||||||
Residential mortgage | 26,329 | 26,329 | 510 | 26,836 | 1,123 | ||||||||||||||||||||||||
Consumer installment | 676 | 676 | — | 653 | — | ||||||||||||||||||||||||
Home equity | 2,648 | 2,648 | — | 2,914 | — | ||||||||||||||||||||||||
Total | $ | 129,345 | $ | 153,390 | $ | 1,591 | $ | 121,021 | $ | 3,764 | |||||||||||||||||||
The average annual recorded investment of impaired loans during 2012 was $133.0 million and was comprised of the following classes of loans: commercial - $27.7 million; commercial real estate - $58.1 million; real estate construction - $0.7 million; land development - $9.1 million; residential mortgage - $33.4 million; consumer installment - $1.1 million; and home equity - $2.9 million. Interest income recognized during 2012 while these loans were in impaired status was $3.7 million, including $1.0 million on commercial loans, $1.0 million on commercial real estate loans, $0.4 million on land development loans and $1.4 million on residential mortgage loans. | |||||||||||||||||||||||||||||
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 December 31, 2014 and 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) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Originated Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 4,033 | $ | 743 | $ | 170 | $ | 16,418 | $ | 21,364 | $ | 1,234,534 | $ | 1,255,898 | |||||||||||||||
Commercial real estate | 7,515 | 1,383 | — | 24,966 | 33,864 | 1,170,562 | 1,204,426 | ||||||||||||||||||||||
Real estate construction | 262 | — | — | 162 | 424 | 138,316 | 138,740 | ||||||||||||||||||||||
Land development | — | — | — | 225 | 225 | 4,303 | 4,528 | ||||||||||||||||||||||
Residential mortgage | 2,126 | 54 | 557 | 6,706 | 9,443 | 988,558 | 998,001 | ||||||||||||||||||||||
Consumer installment | 3,620 | 512 | — | 500 | 4,632 | 814,746 | 819,378 | ||||||||||||||||||||||
Home equity | 3,039 | 660 | 1,346 | 1,667 | 6,712 | 562,384 | 569,096 | ||||||||||||||||||||||
Total | $ | 20,595 | $ | 3,352 | $ | 2,073 | $ | 50,644 | $ | 76,664 | $ | 4,913,403 | $ | 4,990,067 | |||||||||||||||
Acquired Portfolio: | |||||||||||||||||||||||||||||
Commercial | $ | 133 | $ | — | $ | 5,427 | $ | — | $ | 5,560 | $ | 93,423 | $ | 98,983 | |||||||||||||||
Commercial real estate | 2,014 | 352 | 11,052 | — | 13,418 | 339,804 | 353,222 | ||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 14,005 | 14,005 | ||||||||||||||||||||||
Land development | — | — | 1,653 | — | 1,653 | 12,569 | 14,222 | ||||||||||||||||||||||
Residential mortgage | 156 | — | 18 | — | 174 | 112,215 | 112,389 | ||||||||||||||||||||||
Consumer installment | 55 | 3 | 454 | — | 512 | 9,680 | 10,192 | ||||||||||||||||||||||
Home equity | 636 | 106 | 1,288 | — | 2,030 | 93,120 | 95,150 | ||||||||||||||||||||||
Total | $ | 2,994 | $ | 461 | $ | 19,892 | $ | — | $ | 23,347 | $ | 674,816 | $ | 698,163 | |||||||||||||||
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 | |||||||||||||||
Loan | |||||||||||||||||||||||||||||
Schedule of Corporation's TDRs | The following schedule presents the Corporation's TDRs at December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
Performing TDRs | Non-Performing TDRs | Nonaccrual TDRs | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Commercial loan portfolio | $ | 29,179 | $ | 15,271 | $ | 32,597 | $ | 77,047 | |||||||||||||||||||||
Consumer loan portfolio | 16,485 | 3,196 | 4,594 | 24,275 | |||||||||||||||||||||||||
Total | $ | 45,664 | $ | 18,467 | $ | 37,191 | $ | 101,322 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Schedule providing information on performing and nonperforming TDRs | The following schedule provides information on the Corporation's TDRs that were modified during the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||||||
Number | Pre- | Post- | |||||||||||||||||||||||||||
of Loans | Modification | Modification | |||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 53 | $ | 13,781 | $ | 13,781 | ||||||||||||||||||||||||
Commercial real estate | 46 | 12,075 | 12,075 | ||||||||||||||||||||||||||
Land development | 1 | 72 | 72 | ||||||||||||||||||||||||||
Subtotal — commercial loan portfolio | 100 | 25,928 | 25,928 | ||||||||||||||||||||||||||
Consumer loan portfolio (residential mortgage) | 119 | 4,184 | 4,158 | ||||||||||||||||||||||||||
Total | 219 | $ | 30,112 | $ | 30,086 | ||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 57 | $ | 12,123 | $ | 12,123 | ||||||||||||||||||||||||
Commercial real estate | 49 | 16,222 | 16,222 | ||||||||||||||||||||||||||
Real estate construction | 4 | 575 | 575 | ||||||||||||||||||||||||||
Land development | 4 | 1,958 | 1,958 | ||||||||||||||||||||||||||
Subtotal — commercial loan portfolio | 114 | 30,878 | 30,878 | ||||||||||||||||||||||||||
Consumer loan portfolio (residential mortgage) | 85 | 4,943 | 4,840 | ||||||||||||||||||||||||||
Total | 199 | $ | 35,821 | $ | 35,718 | ||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 91 | $ | 13,720 | $ | 13,720 | ||||||||||||||||||||||||
Commercial real estate | 77 | 17,328 | 17,328 | ||||||||||||||||||||||||||
Land development | 11 | 5,494 | 5,494 | ||||||||||||||||||||||||||
Subtotal — commercial loan portfolio | 179 | 36,542 | 36,542 | ||||||||||||||||||||||||||
Consumer loan portfolio (residential mortgage) | 121 | 9,944 | 9,684 | ||||||||||||||||||||||||||
Total | 300 | $ | 46,486 | $ | 46,226 | ||||||||||||||||||||||||
Troubled debt restructurings on financing receivables with defaults payment | The following schedule includes TDRs for which there was a payment default during the years ended December 31, 2014, 2013 and 2012, 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: | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Number of Loans | Principal Balance at Year End | Number of Loans | Principal Balance at Year End | Number of Loans | Principal Balance at Year End | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial loan portfolio: | |||||||||||||||||||||||||||||
Commercial | 7 | $ | 885 | 23 | $ | 2,745 | 10 | $ | 1,692 | ||||||||||||||||||||
Commercial real estate | 6 | 2,352 | 8 | 4,278 | 15 | 4,993 | |||||||||||||||||||||||
Real estate construction | — | — | 3 | 371 | — | — | |||||||||||||||||||||||
Land development | — | — | 2 | 1,526 | 4 | 1,157 | |||||||||||||||||||||||
Subtotal — commercial loan portfolio | 13 | 3,237 | 36 | 8,920 | 29 | 7,842 | |||||||||||||||||||||||
Consumer loan portfolio (residential mortgage) | 12 | 259 | 22 | 1,826 | 13 | 1,673 | |||||||||||||||||||||||
Total | 25 | $ | 3,496 | 58 | $ | 10,746 | 42 | $ | 9,515 | ||||||||||||||||||||
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 year ended December 31, 2014 and details regarding the balance in the allowance and the recorded investment in loans at December 31, 2014 by impairment evaluation method. | ||||||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Loan | Loan | ||||||||||||||||||||||||||||
Portfolio | Portfolio | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Changes in allowance for loan losses for the year ended December 31, 2014: | |||||||||||||||||||||||||||||
Beginning balance | $ | 44,482 | $ | 30,145 | $ | 4,445 | $ | 79,072 | |||||||||||||||||||||
Provision for loan losses | 3,464 | 4,357 | (1,721 | ) | 6,100 | ||||||||||||||||||||||||
Charge-offs | (6,399 | ) | (7,830 | ) | — | (14,229 | ) | ||||||||||||||||||||||
Recoveries | 2,609 | 2,131 | — | 4,740 | |||||||||||||||||||||||||
Ending balance | $ | 44,156 | $ | 28,803 | $ | 2,724 | $ | 75,683 | |||||||||||||||||||||
Allowance for loan losses balance at December 31, 2014 attributable to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,003 | $ | 335 | $ | — | $ | 1,338 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 43,153 | 27,968 | 2,724 | 73,845 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | — | 500 | — | 500 | |||||||||||||||||||||||||
Total | $ | 44,156 | $ | 28,803 | $ | 2,724 | $ | 75,683 | |||||||||||||||||||||
Recorded investment (loan balance) at December 31, 2014: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 86,221 | $ | 19,681 | $ | — | $ | 105,902 | |||||||||||||||||||||
Loans collectively evaluated for impairment | 2,517,371 | 2,366,794 | — | 4,884,165 | |||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 480,432 | 217,731 | — | 698,163 | |||||||||||||||||||||||||
Total | $ | 3,084,024 | $ | 2,604,206 | $ | — | $ | 5,688,230 | |||||||||||||||||||||
The following presents, by loan portfolio segment, the changes in the allowance for the year ended December 31, 2013 and 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) | |||||||||||||||||||||||||||||
Changes in allowance for loan losses for the year ended December 31, 2013: | |||||||||||||||||||||||||||||
Beginning balance | $ | 49,975 | $ | 29,333 | $ | 5,183 | $ | 84,491 | |||||||||||||||||||||
Provision for loan losses | 3,895 | 7,843 | (738 | ) | 11,000 | ||||||||||||||||||||||||
Charge-offs | (12,280 | ) | (8,866 | ) | — | (21,146 | ) | ||||||||||||||||||||||
Recoveries | 2,892 | 1,835 | — | 4,727 | |||||||||||||||||||||||||
Ending balance | $ | 44,482 | $ | 30,145 | $ | 4,445 | $ | 79,072 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of premises and equipment | A summary of premises and equipment follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Cost: | |||||||||
Land and land improvements | $ | 27,402 | $ | 21,749 | |||||
Buildings | 110,380 | 91,920 | |||||||
Equipment | 68,540 | 61,900 | |||||||
Total cost | 206,322 | 175,569 | |||||||
Accumulated depreciation | (108,826 | ) | (100,261 | ) | |||||
Total premises and equipment | $ | 97,496 | $ | 75,308 | |||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Net carrying value of other intangible assets | The following table shows the net carrying value of the Corporation's other intangible assets: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Other intangible assets: | |||||||||||||
Core deposit intangible assets | $ | 20,863 | $ | 10,001 | |||||||||
Mortgage servicing rights (MSRs) | 12,217 | 3,423 | |||||||||||
Total other intangible assets | $ | 33,080 | $ | 13,424 | |||||||||
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: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Gross original amount | $ | 31,550 | $ | 18,659 | |||||||||
Accumulated amortization | 10,687 | 8,658 | |||||||||||
Carrying amount | $ | 20,863 | $ | 10,001 | |||||||||
Amortization expense for the year ended December 31 | $ | 2,029 | $ | 1,909 | |||||||||
Net carrying value and fair value of MSRs and total loans that Corporation is 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: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Net carrying value of MSRs | $ | 12,217 | $ | 3,423 | |||||||||
Fair value of MSRs | $ | 14,979 | $ | 6,878 | |||||||||
Loans serviced for others that have servicing rights capitalized | $ | 2,093,140 | $ | 886,730 | |||||||||
Activity for capitalized MSRs | The following shows activity for capitalized MSRs for the last three years: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 3,423 | $ | 3,478 | $ | 3,593 | |||||||
Acquired in Northwestern acquisition | 9,235 | — | — | ||||||||||
Additions | 1,075 | 1,528 | 2,285 | ||||||||||
Amortization | (1,316 | ) | (1,583 | ) | (2,400 | ) | |||||||
Increase in valuation allowance | (200 | ) | — | — | |||||||||
Balance at end of year | $ | 12,217 | $ | 3,423 | $ | 3,478 | |||||||
Valuation allowance at December 31 | $ | 200 | $ | — | $ | — | |||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deposits [Abstract] | |||||||||
Schedule of Deposits | A summary of deposits follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Noninterest-bearing demand | $ | 1,591,661 | $ | 1,227,768 | |||||
Interest-bearing demand | 1,428,941 | 1,169,076 | |||||||
Savings | 1,720,422 | 1,393,610 | |||||||
Time deposits over $100,000 | 557,476 | 529,265 | |||||||
Other time deposits | 780,471 | 802,666 | |||||||
Total deposits | $ | 6,078,971 | $ | 5,122,385 | |||||
ShortTerm_Borrowings_Tables
Short-Term Borrowings (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Short-term Debt [Abstract] | |||||||||||||||||||
Summary of short-term borrowings | A summary of short-term borrowings, which consisted of securities sold under agreements to repurchase, FHLB advances and federal funds purchased, follows: | ||||||||||||||||||
Ending Balance at Year-End | Weighted Average Interest Rate at Year-End | Average Amount Outstanding During Year | Weighted Average Interest Rate During Year | Maximum Outstanding at Any Month-End | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
2014 | |||||||||||||||||||
Securities sold under agreements to repurchase | $ | 304,467 | 0.11 | % | $ | 326,056 | 0.12 | % | $ | 361,231 | |||||||||
FHLB advances | 60,000 | 0.25 | 6,726 | 0.27 | 60,000 | ||||||||||||||
Federal funds purchased | 25,000 | 0.4 | 2,003 | 0.4 | 25,000 | ||||||||||||||
2013 | |||||||||||||||||||
Securities sold under agreements to repurchase | $ | 327,428 | 0.15 | % | $ | 337,649 | 0.14 | % | $ | 357,976 | |||||||||
2012 | |||||||||||||||||||
Securities sold under agreements to repurchase | $ | 310,463 | 0.14 | % | $ | 312,729 | 0.14 | % | $ | 335,193 | |||||||||
Federal_Home_Loan_Bank_Advance1
Federal Home Loan Bank Advances (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Federal Home Loan Banks [Abstract] | |||||||||
Schedule of Federal Home Loan Bank Advances | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Net unrealized gains (losses) on investment securities — available-for-sale, net of related tax expense (benefit) of $(113) at December 31, 2014, ($1,335) at December 31, 2013 and $2,301 at December 31, 2012 | $ | (210 | ) | $ | (2,480 | ) | $ | 4,274 | |||||
Pension and other postretirement benefits adjustment, net of related tax benefit of $17,362 at December 31, 2014, $9,714 at December 31, 2013 and $19,058 at December 31, 2012 | (32,243 | ) | (18,040 | ) | (35,393 | ) | |||||||
Accumulated other comprehensive loss | $ | (32,453 | ) | $ | (20,520 | ) | $ | (31,119 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 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 follow: | |||||||||||||||||
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) | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Investment securities — available-for-sale: | ||||||||||||||||||
U.S. Treasury securities | $ | 8,259 | $ | — | $ | — | $ | 8,259 | ||||||||||
Government sponsored agencies | — | 263,503 | — | 263,503 | ||||||||||||||
State and political subdivisions | — | 46,227 | — | 46,227 | ||||||||||||||
Residential mortgage-backed securities | — | 239,807 | — | 239,807 | ||||||||||||||
Collateralized mortgage obligations | — | 144,383 | — | 144,383 | ||||||||||||||
Corporate bonds | — | 45,095 | — | 45,095 | ||||||||||||||
Preferred stock | — | 1,590 | — | 1,590 | ||||||||||||||
Total investment securities — available-for-sale | 8,259 | 740,605 | — | 748,864 | ||||||||||||||
Loans held-for-sale | — | 9,128 | — | 9,128 | ||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 8,259 | $ | 749,733 | $ | — | $ | 757,992 | ||||||||||
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 | ||||||||||
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 follow: | |||||||||||||||||
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) | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 21,323 | $ | 21,323 | ||||||||||
Other real estate/repossessed assets | — | — | 14,205 | 14,205 | ||||||||||||||
Mortgage servicing rights | — | — | 8,691 | 8,691 | ||||||||||||||
Total | $ | — | $ | — | $ | 44,219 | $ | 44,219 | ||||||||||
31-Dec-13 | ||||||||||||||||||
Impaired originated loans | $ | — | $ | — | $ | 28,852 | $ | 28,852 | ||||||||||
Other real estate/repossessed assets | — | — | 9,776 | 9,776 | ||||||||||||||
Total | $ | — | $ | — | $ | 38,628 | $ | 38,628 | ||||||||||
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 follows: | |||||||||||||||||
Level in Fair Value Measurement Hierarchy | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||
(In thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 183,020 | $ | 183,020 | $ | 310,788 | $ | 310,788 | |||||||||
Investment securities: | ||||||||||||||||||
Available-for-sale | Level 2 | 748,864 | 748,864 | 684,570 | 684,570 | |||||||||||||
Held-to-maturity | Level 2 | 305,913 | 308,650 | 263,405 | 262,021 | |||||||||||||
Held-to-maturity | Level 3 | 10,500 | 7,090 | 10,500 | 6,250 | |||||||||||||
Nonmarketable equity securities | NA | 27,369 | 27,369 | 25,572 | 25,572 | |||||||||||||
Loans held-for-sale | Level 2 | 9,128 | 9,128 | 5,219 | 5,219 | |||||||||||||
Net loans | Level 3 | 5,612,547 | 5,623,454 | 4,568,549 | 4,575,532 | |||||||||||||
Interest receivable | Level 2 | 17,492 | 17,492 | 15,748 | 15,748 | |||||||||||||
Liabilities: | ||||||||||||||||||
Deposits without defined maturities | Level 2 | $ | 4,741,024 | $ | 4,741,024 | $ | 3,790,454 | $ | 3,790,454 | |||||||||
Time deposits | Level 3 | 1,337,947 | 1,340,015 | 1,331,931 | 1,340,746 | |||||||||||||
Interest payable | Level 2 | 755 | 755 | 868 | 868 | |||||||||||||
Short-term borrowings | Level 2 | 389,467 | 389,467 | 327,428 | 327,428 | |||||||||||||
Noninterest_Income_Tables
Noninterest Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Noninterest Income [Abstract] | |||||||||||||
Schedule of major components of noninterest Income | The following schedule includes the major components of noninterest income during the past three years: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Service charges and fees on deposit accounts | $ | 22,414 | $ | 21,939 | $ | 19,581 | |||||||
Wealth management revenue | 16,015 | 13,989 | 11,763 | ||||||||||
Electronic banking fees | 13,480 | 12,213 | 9,793 | ||||||||||
Mortgage banking revenue | 5,041 | 5,336 | 6,597 | ||||||||||
Other fees for customer services | 3,539 | 3,288 | 2,598 | ||||||||||
Insurance commissions | 1,559 | 1,650 | 1,836 | ||||||||||
Gain on sale of investment securities | — | 1,133 | 34 | ||||||||||
Gain on sale of merchant card services | 400 | — | 1,280 | ||||||||||
Other | 647 | 861 | 1,202 | ||||||||||
Total noninterest income | $ | 63,095 | $ | 60,409 | $ | 54,684 | |||||||
Operating_Expenses_Tables
Operating Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Operating Expenses [Abstract] | |||||||||||||
Schedule of major categories of operating expenses | The following schedule includes the major categories of operating expenses during the past three years: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Salaries and wages | $ | 84,807 | $ | 78,014 | $ | 68,668 | |||||||
Employee benefits | 19,411 | 18,405 | 15,715 | ||||||||||
Occupancy | 15,842 | 13,934 | 12,413 | ||||||||||
Equipment and software | 15,297 | 13,734 | 13,112 | ||||||||||
Outside processing and service fees | 12,372 | 11,134 | 10,679 | ||||||||||
Professional fees | 6,125 | 3,771 | 4,347 | ||||||||||
FDIC insurance premiums | 4,307 | 4,362 | 4,320 | ||||||||||
Postage and express mail | 3,557 | 3,051 | 3,149 | ||||||||||
Advertising and marketing | 3,449 | 2,971 | 3,106 | ||||||||||
Training, travel and other employee expenses | 2,748 | 2,512 | 2,530 | ||||||||||
Intangible asset amortization | 2,029 | 1,909 | 1,569 | ||||||||||
Telephone | 1,966 | 1,940 | 1,693 | ||||||||||
Supplies | 1,897 | 1,670 | 1,567 | ||||||||||
Donations | 1,155 | 2,829 | 1,892 | ||||||||||
Credit-related expenses | 996 | 707 | 3,816 | ||||||||||
Other | 3,967 | 4,005 | 3,345 | ||||||||||
Total operating expenses | $ | 179,925 | $ | 164,948 | $ | 151,921 | |||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Changes in the Projected Benefit Obligation and Plan Assets of the Corporationbs Pension and Postretirement Plans | The following schedule sets forth the changes in the projected benefit obligation and plan assets of the Corporation's Pension and Postretirement Plans: | ||||||||||||||||||||||||
Pension Plan | Postretirement Plan | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Projected benefit obligation: | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 105,914 | $ | 115,177 | $ | 3,477 | $ | 3,243 | |||||||||||||||||
Service cost | 944 | 1,247 | 18 | 18 | |||||||||||||||||||||
Interest cost | 5,167 | 4,603 | 142 | 143 | |||||||||||||||||||||
Plan amendments | — | — | — | 720 | |||||||||||||||||||||
Net actuarial (gain) loss | 21,314 | (10,926 | ) | 312 | (428 | ) | |||||||||||||||||||
Benefits paid | (4,179 | ) | (4,187 | ) | (247 | ) | (219 | ) | |||||||||||||||||
Benefit obligation at end of year | 129,160 | 105,914 | 3,702 | 3,477 | |||||||||||||||||||||
Fair value of plan assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 128,829 | 98,187 | — | — | |||||||||||||||||||||
Actual return on plan assets | 6,125 | 19,829 | — | — | |||||||||||||||||||||
Employer contributions | — | 15,000 | 247 | 219 | |||||||||||||||||||||
Benefits paid | (4,179 | ) | (4,187 | ) | (247 | ) | (219 | ) | |||||||||||||||||
Fair value of plan assets at end of year | 130,775 | 128,829 | — | — | |||||||||||||||||||||
Funded (unfunded) status at December 31 | $ | 1,615 | $ | 22,915 | $ | (3,702 | ) | $ | (3,477 | ) | |||||||||||||||
Accumulated benefit obligation | $ | 121,826 | $ | 99,551 | $ | 3,702 | $ | 3,477 | |||||||||||||||||
Schedule of Weighted-average rate assumptions of the Pension and Postretirement Plans | Weighted-average rate assumptions of the Pension and Postretirement Plans follow: | ||||||||||||||||||||||||
Pension Plan | Postretirement Plan | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate used in determining benefit obligation — December 31 | 4.15 | % | 5 | % | 4.08 | % | 3.75 | % | 4.27 | % | 4.08 | % | |||||||||||||
Discount rate used in determining expense | 5 | 4.08 | 4.9 | 4.27 | 4.08 | 4.9 | |||||||||||||||||||
Expected long-term return on Pension Plan assets | 7 | 7 | 7 | — | — | — | |||||||||||||||||||
Rate of compensation increase used in determining benefit obligation — December 31 | 3.5 | 3.5 | 3.5 | — | — | — | |||||||||||||||||||
Rate of compensation increase used in determining pension expense | 3.5 | 3.5 | 3.5 | — | — | — | |||||||||||||||||||
Year 1 increase in cost of postretirement benefits | — | — | — | 8 | 8.5 | 8 | |||||||||||||||||||
Schedule of Net periodic Pension Cost (Income) of the Pension and Postretirement Plans | Net periodic pension cost (income) of the Pension and Postretirement Plans was as follows for the years ended December 31: | ||||||||||||||||||||||||
Pension Plan | Postretirement Plan | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Service cost | $ | 944 | $ | 1,247 | $ | 1,168 | $ | 18 | $ | 18 | $ | — | |||||||||||||
Interest cost | 5,167 | 4,603 | 4,795 | 142 | 143 | 146 | |||||||||||||||||||
Expected return on plan assets | (8,314 | ) | (7,794 | ) | (6,925 | ) | — | — | — | ||||||||||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (1 | ) | 130 | 343 | (300 | ) | |||||||||||||||
Amortization of net actuarial loss (gain) | 2,159 | 3,670 | 2,382 | (104 | ) | (73 | ) | (28 | ) | ||||||||||||||||
Net cost (income) | $ | (45 | ) | $ | 1,725 | $ | 1,419 | $ | 186 | $ | 431 | $ | (182 | ) | |||||||||||
Schedule of Estimated Future Benefit Payments Under the Pension and Postretirement Plans | The following schedule presents estimated future benefit payments under the Pension and Postretirement Plans for retirees already receiving benefits and future retirees, assuming they retire and begin receiving unreduced benefits as soon as they are eligible: | ||||||||||||||||||||||||
Pension Plan | Postretirement Plan | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2015 | $ | 5,693 | $ | 300 | |||||||||||||||||||||
2016 | 6,402 | 310 | |||||||||||||||||||||||
2017 | 6,297 | 310 | |||||||||||||||||||||||
2018 | 6,241 | 310 | |||||||||||||||||||||||
2019 | 6,820 | 320 | |||||||||||||||||||||||
2020 - 2024 | 36,448 | 1,510 | |||||||||||||||||||||||
Total | $ | 67,901 | $ | 3,060 | |||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percentage-point change in these rates would have the following effects: | ||||||||||||||||||||||||
One Percentage-Point | |||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Effect on total of service and interest cost components in 2014 | $ | 13 | $ | (12 | ) | ||||||||||||||||||||
Effect on postretirement benefit obligation as of December 31, 2014 | 327 | (289 | ) | ||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The following schedule sets forth the fair value of the Pension Plan's assets and the level of the valuation inputs used to value those assets at December 31, 2014 and 2013: | ||||||||||||||||||||||||
Asset Category | Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||
In Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Cash | $ | 2,594 | $ | — | $ | — | $ | 2,594 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. large- and mid-cap stocks(a) | 56,718 | — | — | 56,718 | |||||||||||||||||||||
U.S. small-cap mutual funds | 5,409 | — | — | 5,409 | |||||||||||||||||||||
International large-cap mutual funds | 14,805 | — | — | 14,805 | |||||||||||||||||||||
Emerging markets mutual funds | 6,004 | — | — | 6,004 | |||||||||||||||||||||
Chemical Financial Corporation common stock | 6,455 | — | — | 6,455 | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury and government sponsored agency bonds and notes | 998 | 2,043 | — | 3,041 | |||||||||||||||||||||
Corporate bonds(b) | — | 6,814 | — | 6,814 | |||||||||||||||||||||
Mutual funds(c) | 28,795 | — | — | 28,795 | |||||||||||||||||||||
Other | 140 | — | — | 140 | |||||||||||||||||||||
Total | $ | 121,918 | $ | 8,857 | $ | — | $ | 130,775 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Cash | $ | 902 | $ | — | $ | — | $ | 902 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. large- and mid-cap stocks(a) | 56,015 | — | — | 56,015 | |||||||||||||||||||||
U.S. small-cap mutual funds | 5,608 | — | — | 5,608 | |||||||||||||||||||||
International large-cap mutual funds | 15,504 | — | — | 15,504 | |||||||||||||||||||||
Emerging markets mutual funds | 6,360 | — | — | 6,360 | |||||||||||||||||||||
Chemical Financial Corporation common stock | 6,672 | — | — | 6,672 | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury and government sponsored agency bonds and notes | 4,600 | 2,574 | — | 7,174 | |||||||||||||||||||||
Corporate bonds(b) | — | 8,693 | — | 8,693 | |||||||||||||||||||||
Mutual funds(c) | 21,901 | — | — | 21,901 | |||||||||||||||||||||
Other | — | — | — | — | |||||||||||||||||||||
Total | $ | 117,562 | $ | 11,267 | $ | — | $ | 128,829 | |||||||||||||||||
(a) | Comprised of common stocks and mutual funds traded on U.S. Exchanges whose issuers had market capitalizations exceeding $3 billion. | ||||||||||||||||||||||||
(b) | Comprised of investment grade bonds of U.S. issuers from diverse industries. | ||||||||||||||||||||||||
(c) | Comprised primarily of fixed-income bonds issued by the U.S. Treasury and government sponsored agencies and bonds of U.S. and foreign issuers from diverse industries. | ||||||||||||||||||||||||
The Pension Plan's asset allocation by asset category was as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
Asset Category | 2014 | 2013 | |||||||||||||||||||||||
Equity securities | 68 | % | 70 | % | |||||||||||||||||||||
Debt securities | 30 | 29 | |||||||||||||||||||||||
Other | 2 | 1 | |||||||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax, Related to the Corporationbs Pension, Postretirement and Supplemental Plans | The following sets forth the changes in accumulated other comprehensive income (loss), net of tax, related to the Corporation's Pension, Postretirement and Supplemental Plans during 2014: | ||||||||||||||||||||||||
Pension | Postretirement | Supplemental | Total | ||||||||||||||||||||||
Plan | Plan | Plan | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Accumulated other comprehensive income (loss) at beginning of year | $ | (17,979 | ) | $ | 269 | $ | (330 | ) | $ | (18,040 | ) | ||||||||||||||
Comprehensive income (loss) adjustment: | |||||||||||||||||||||||||
Prior service costs (credits) | (1 | ) | 84 | — | 83 | ||||||||||||||||||||
Net actuarial loss | (13,873 | ) | (270 | ) | (143 | ) | (14,286 | ) | |||||||||||||||||
Comprehensive income (loss) adjustment | (13,874 | ) | (186 | ) | (143 | ) | (14,203 | ) | |||||||||||||||||
Accumulated other comprehensive income (loss) at end of year | $ | (31,853 | ) | $ | 83 | $ | (473 | ) | $ | (32,243 | ) | ||||||||||||||
Schedule of Estimated Income (Loss) That Will Be Amortized From Accumulated Other Comprehensive Income (Loss) Into Net Periodic Cost | The estimated income (loss) that will be amortized from accumulated other comprehensive income (loss) into net periodic cost, net of tax, in 2015 is as follows: | ||||||||||||||||||||||||
Pension | Postretirement | Supplemental | Total | ||||||||||||||||||||||
Plan | Plan | Plan | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Prior service (costs) credits | $ | 3 | $ | (84 | ) | $ | — | $ | (81 | ) | |||||||||||||||
Net gain (loss) | (2,576 | ) | 1 | (170 | ) | (2,745 | ) | ||||||||||||||||||
Total | $ | (2,573 | ) | $ | (83 | ) | $ | (170 | ) | $ | (2,826 | ) |
ShareBased_Compensation_Plan_T
Share-Based Compensation Plan (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||
Schedule of stock options outstanding by exercise price range | The following summarizes information about stock options outstanding at December 31, 2014: | |||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of | Number | Weighted | Weighted | Number | Weighted | Weighted | ||||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | Average | ||||||||||||||
Prices | Exercise | Contractual | Exercise | Contractual | ||||||||||||||||
Per Share | Price | Term | Price | Term | ||||||||||||||||
Per Share | (In Years) | Per Share | (In Years) | |||||||||||||||||
$ 19.43 - 21.10 | 107,803 | $ | 20.36 | 5.58 | 107,803 | $ | 20.36 | 5.58 | ||||||||||||
23.78 - 25.14 | 625,420 | 24.57 | 6.17 | 376,259 | 24.44 | 5.03 | ||||||||||||||
29.45 | 183,038 | 29.45 | 9.17 | — | — | 0 | ||||||||||||||
32.28 | 121,050 | 32.28 | 0.97 | 121,050 | 32.28 | 0.97 | ||||||||||||||
$ 19.43 - 32.28 | 1,037,311 | $ | 25.9 | 6.03 | 605,112 | $ | 25.28 | 4.31 | ||||||||||||
Summary of activity for Corporation's stock options | A summary of activity for the Corporation's stock options as of and during the three years ended December 31, 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 | Price | ||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||
Outstanding at December 31, 2011 | 162,883 | $ | 21.27 | $ | 6.55 | 815,119 | $ | 28.29 | ||||||||||||
Activity during 2012: | ||||||||||||||||||||
Granted | 229,763 | 23.78 | 7.08 | 229,763 | 23.78 | |||||||||||||||
Exercised | — | — | — | (1,532 | ) | 19.97 | ||||||||||||||
Vested | (76,103 | ) | 21.55 | 6.63 | — | — | ||||||||||||||
Expired or forfeited | (1,778 | ) | 21.48 | 6.62 | (46,128 | ) | 28.78 | |||||||||||||
Outstanding at December 31, 2012 | 314,765 | 23.03 | 6.92 | 997,222 | 27.24 | |||||||||||||||
Activity during 2013: | ||||||||||||||||||||
Granted | 244,719 | 25.14 | 7.4 | 244,719 | 25.14 | |||||||||||||||
Exercised | — | — | — | (100,145 | ) | 22.87 | ||||||||||||||
Vested | (127,443 | ) | 22.94 | 6.92 | — | — | ||||||||||||||
Expired or forfeited | (17,961 | ) | 23.34 | 6.98 | (67,806 | ) | 32.27 | |||||||||||||
Outstanding at December 31, 2013 | 414,080 | 24.29 | 7.19 | 1,073,990 | 26.84 | |||||||||||||||
Activity during 2014: | ||||||||||||||||||||
Granted | 190,011 | 29.45 | 9.64 | 190,011 | 29.45 | |||||||||||||||
Exercised | — | — | — | (72,936 | ) | 24.67 | ||||||||||||||
Vested | (148,016 | ) | 23.43 | 6.98 | — | — | ||||||||||||||
Expired or forfeited | (23,876 | ) | 25.67 | 7.79 | (153,754 | ) | 37.5 | |||||||||||||
Outstanding at December 31, 2014 | 432,199 | $ | 26.75 | $ | 8.3 | 1,037,311 | $ | 25.9 | ||||||||||||
Exercisable/vested at December 31, 2014 | 605,112 | $ | 25.28 | |||||||||||||||||
Assumptions of Black-Scholes option pricing model | The fair value of the stock options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions. | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Expected dividend yield | 3 | % | 3.5 | % | 3.6 | % | ||||||||||||||
Risk-free interest rate | 2.16 | % | 1.34 | % | 1.18 | % | ||||||||||||||
Expected stock price volatility | 42.2 | % | 42.1 | % | 44.4 | % | ||||||||||||||
Expected life of options — in years | 7 | 7 | 6.11 | |||||||||||||||||
Weighted average fair value per share | $9.64 | $7.40 | $7.08 | |||||||||||||||||
Summary of activity for restricted stock units | A summary of the activity for restricted stock units during the three years ended December 31, 2014 is presented below: | |||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Units | Average | |||||||||||||||||||
Grant Date | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Per Unit | ||||||||||||||||||||
Outstanding at December 31, 2011 | 130,512 | $ | 20.9 | |||||||||||||||||
Activity during 2012: | ||||||||||||||||||||
Granted | 69,772 | 22.2 | ||||||||||||||||||
Converted into shares of common stock | (35,346 | ) | 23.27 | |||||||||||||||||
Forfeited/expired | (8,428 | ) | 23.05 | |||||||||||||||||
Outstanding at December 31, 2012 | 156,510 | 20.83 | ||||||||||||||||||
Activity during 2013: | ||||||||||||||||||||
Granted | 71,768 | 23.42 | ||||||||||||||||||
Converted into shares of common stock | (36,416 | ) | 22.44 | |||||||||||||||||
Forfeited/expired | (3,330 | ) | 21.67 | |||||||||||||||||
Outstanding at December 31, 2013 | 188,532 | 21.49 | ||||||||||||||||||
Activity during 2014: | ||||||||||||||||||||
Granted | 73,468 | 27.49 | ||||||||||||||||||
Converted into shares of common stock | (52,008 | ) | 19.23 | |||||||||||||||||
Forfeited/expired | (5,673 | ) | 24.31 | |||||||||||||||||
Outstanding at December 31, 2014 | 204,319 | $ | 24.14 | |||||||||||||||||
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Federal Effective Income Tax Rate Reconciliation | The differences between the provision for federal income taxes computed at the federal statutory income tax rate and the amounts recorded in the consolidated financial statements were as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Tax at statutory rate | $ | 31,367 | $ | 28,388 | $ | 25,133 | |||||||
Changes resulting from: | |||||||||||||
Tax-exempt interest income | (3,118 | ) | (2,746 | ) | (2,524 | ) | |||||||
Income tax credits | (1,624 | ) | (1,615 | ) | (1,561 | ) | |||||||
Other, net | 875 | 273 | (248 | ) | |||||||||
Provision for federal income taxes | $ | 27,500 | $ | 24,300 | $ | 20,800 | |||||||
Effective federal income tax rate | 30.7 | % | 30 | % | 29 | % | |||||||
Provision for Federal Income Taxes Components | The provision for federal income taxes consisted of the following: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current | $ | 29,200 | $ | 23,665 | $ | 8,132 | |||||||
Deferred | (1,700 | ) | 635 | 12,668 | |||||||||
Total | $ | 27,500 | $ | 24,300 | $ | 20,800 | |||||||
Schedule of Deferred Tax Assets and Liabilities | Significant temporary differences that comprise the deferred tax assets and liabilities of the Corporation were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 26,489 | $ | 27,675 | |||||||||
Acquisition-related fair value adjustments | 19,457 | 8,699 | |||||||||||
Accrued expenses not currently deductible | 7,819 | 6,288 | |||||||||||
Nonaccrual loan interest | 4,682 | 2,884 | |||||||||||
Other | 12,729 | 8,779 | |||||||||||
Total deferred tax assets | 71,176 | 54,325 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Defined benefit pension plan | 565 | 8,020 | |||||||||||
Goodwill | 5,205 | 4,680 | |||||||||||
Mortgage servicing rights | 4,276 | 1,197 | |||||||||||
Core deposit intangible assets | 5,072 | 932 | |||||||||||
Other | 3,319 | 4,011 | |||||||||||
Total deferred tax liabilities | 18,437 | 18,840 | |||||||||||
Net deferred tax assets | $ | 52,739 | $ | 35,485 | |||||||||
Regulatory_Capital_and_Reserve1
Regulatory Capital and Reserve Requirements (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 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 to be | ||||||||||||||||||||
Required for | Well Capitalized | |||||||||||||||||||||
Capital Adequacy | Under Prompt | |||||||||||||||||||||
Purposes | Corrective Action | |||||||||||||||||||||
Regulations | ||||||||||||||||||||||
Capital | Ratio | Capital | Ratio | Capital | Ratio | |||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
Total Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | $ | 705,130 | 12.4 | % | $ | 456,302 | 8 | % | N/A | N/A | ||||||||||||
Chemical Bank | 654,031 | 11.5 | 455,633 | 8 | $ | 569,541 | 10 | % | ||||||||||||||
Tier 1 Capital to Risk-Weighted Assets: | ||||||||||||||||||||||
Corporation | 633,779 | 11.1 | 228,151 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 582,783 | 10.2 | 227,816 | 4 | 341,725 | 6 | ||||||||||||||||
Leverage Ratio: | ||||||||||||||||||||||
Corporation | 633,779 | 9.3 | 273,226 | 4 | N/A | N/A | ||||||||||||||||
Chemical Bank | 582,783 | 8.5 | 273,048 | 4 | 341,310 | 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 | ||||||||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Numerator for both basic and diluted earnings per common share, net income | $ | 62,121 | $ | 56,808 | $ | 51,008 | |||||||
Denominator for basic earnings per common share, weighted average common shares outstanding | 31,367 | 28,183 | 27,492 | ||||||||||
Weighted average common stock equivalents | 221 | 169 | 91 | ||||||||||
Denominator for diluted earnings per common share | 31,588 | 28,352 | 27,583 | ||||||||||
Net income per common share: | |||||||||||||
Basic | $ | 1.98 | $ | 2.02 | $ | 1.86 | |||||||
Diluted | 1.97 | 2 | 1.85 | ||||||||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Parent Company Condensed Statement of Financial Position | Condensed financial statements of Chemical Financial Corporation (parent company) only follow: | ||||||||||||
December 31, | |||||||||||||
Condensed Statements of Financial Position | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash at subsidiary bank | $ | 45,820 | $ | 65,358 | |||||||||
Investment in subsidiary bank | 745,045 | 625,156 | |||||||||||
Premises and equipment | 3,601 | 3,902 | |||||||||||
Goodwill | 1,092 | 1,092 | |||||||||||
Other assets | 4,654 | 3,309 | |||||||||||
Total assets | $ | 800,212 | $ | 698,817 | |||||||||
Liabilities and Shareholders' Equity: | |||||||||||||
Other liabilities | $ | 3,079 | $ | 2,317 | |||||||||
Shareholders' equity | 797,133 | 696,500 | |||||||||||
Total liabilities and shareholders' equity | $ | 800,212 | $ | 698,817 | |||||||||
Parent Company Condensed Statement of Income | |||||||||||||
Years Ended December 31, | |||||||||||||
Condensed Statements of Income | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Income: | |||||||||||||
Cash dividends from subsidiary bank | $ | 64,468 | $ | 24,488 | $ | 27,550 | |||||||
Other income | 53 | 390 | 92 | ||||||||||
Total income | 64,521 | 24,878 | 27,642 | ||||||||||
Operating expenses | 7,200 | 4,735 | 3,773 | ||||||||||
Income before income taxes and equity in undistributed net income of subsidiary bank | 57,321 | 20,143 | 23,869 | ||||||||||
Federal income tax benefit | 2,302 | 1,556 | 1,311 | ||||||||||
Equity in undistributed net income of subsidiary bank | 2,498 | 35,109 | 25,828 | ||||||||||
Net income | $ | 62,121 | $ | 56,808 | $ | 51,008 | |||||||
Parent Company Condensed Statement of Cash Flows | |||||||||||||
Years Ended December 31, | |||||||||||||
Condensed Statements of Cash Flows | 2014 | 2013 | 2012 | ||||||||||
(In thousands) | |||||||||||||
Operating Activities: | |||||||||||||
Net income | $ | 62,121 | $ | 56,808 | $ | 51,008 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Share-based compensation expense | 2,931 | 2,854 | 1,865 | ||||||||||
Gain on sale of available-for-sale investment securities | — | (245 | ) | — | |||||||||
Depreciation of premises and equipment | 327 | 416 | 463 | ||||||||||
Equity in undistributed net income of subsidiary bank | (2,498 | ) | (35,109 | ) | (25,828 | ) | |||||||
Net (increase) decrease in other assets | 1,101 | (711 | ) | 1,033 | |||||||||
Net increase (decrease) in other liabilities | (2,519 | ) | 563 | 394 | |||||||||
Net cash provided by operating activities | 61,463 | 24,576 | 28,935 | ||||||||||
Investing Activities: | |||||||||||||
Cash paid, net of cash assumed, in business combination | (117,853 | ) | — | — | |||||||||
Purchase of available-for-sale investment securities | — | — | (4,755 | ) | |||||||||
Proceeds from redemption of available-for-sale investment securities | — | 5,000 | — | ||||||||||
Purchases of premises and equipment, net | (26 | ) | (9 | ) | (147 | ) | |||||||
Net cash provided by (used in) investing activities | (117,879 | ) | 4,991 | (4,902 | ) | ||||||||
Financing Activities: | |||||||||||||
Cash dividends paid | (29,528 | ) | (24,521 | ) | (22,566 | ) | |||||||
Proceeds from issuance of common stock, net of issuance costs | 76,175 | 53,925 | |||||||||||
Repayment of subordinated debt obligations | (10,310 | ) | — | — | |||||||||
Proceeds from directors' stock purchase plan and exercise of stock options | 1,242 | 806 | 260 | ||||||||||
Cash paid for payroll taxes upon conversion of restricted stock units | (701 | ) | (379 | ) | (248 | ) | |||||||
Net cash provided by (used in) financing activities | 36,878 | 29,831 | (22,554 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | (19,538 | ) | 59,398 | 1,479 | |||||||||
Cash and cash equivalents at beginning of year | 65,358 | 5,960 | 4,481 | ||||||||||
Cash and cash equivalents at end of year | $ | 45,820 | $ | 65,358 | $ | 5,960 | |||||||
Summary_of_Quarterly_Statement1
Summary of Quarterly Statements of Income (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||
Schedule of Quarterly Financial Information | The following quarterly information is unaudited. However, in the opinion of management, the information reflects all adjustments that are necessary for the fair presentation of the results of operations for the periods presented. | ||||||||||||||||||||
2014 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Interest income | $ | 53,645 | $ | 55,180 | $ | 56,629 | $ | 61,807 | $ | 227,261 | |||||||||||
Interest expense | 3,866 | 3,720 | 3,561 | 3,563 | 14,710 | ||||||||||||||||
Net interest income | 49,779 | 51,460 | 53,068 | 58,244 | 212,551 | ||||||||||||||||
Provision for loan losses | 1,600 | 1,500 | 1,500 | 1,500 | 6,100 | ||||||||||||||||
Noninterest income | 13,716 | 15,801 | 15,351 | 18,227 | 63,095 | ||||||||||||||||
Operating expenses | 42,182 | 42,425 | 42,702 | 52,616 | 179,925 | ||||||||||||||||
Income before income taxes | 19,713 | 23,336 | 24,217 | 22,355 | 89,621 | ||||||||||||||||
Federal income tax expense | 5,900 | 7,100 | 7,450 | 7,050 | 27,500 | ||||||||||||||||
Net income | $ | 13,813 | $ | 16,236 | $ | 16,767 | $ | 15,305 | $ | 62,121 | |||||||||||
Net income per common share: | |||||||||||||||||||||
Basic | $ | 0.46 | $ | 0.54 | $ | 0.51 | $ | 0.47 | $ | 1.98 | |||||||||||
Diluted | 0.46 | 0.54 | 0.51 | 0.46 | 1.97 | ||||||||||||||||
Cash dividends declared per common share | 0.23 | 0.23 | 0.24 | 0.24 | 0.94 | ||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||
Interest income | $ | 52,379 | $ | 52,781 | $ | 53,578 | $ | 55,323 | $ | 214,061 | |||||||||||
Interest expense | 4,727 | 4,385 | 4,284 | 4,018 | 17,414 | ||||||||||||||||
Net interest income | 47,652 | 48,396 | 49,294 | 51,305 | 196,647 | ||||||||||||||||
Provision for loan losses | 3,000 | 3,000 | 3,000 | 2,000 | 11,000 | ||||||||||||||||
Noninterest income | 16,239 | 15,948 | 14,644 | 13,578 | 60,409 | ||||||||||||||||
Operating expenses | 41,957 | 41,041 | 39,545 | 42,405 | 164,948 | ||||||||||||||||
Income before income taxes | 18,934 | 20,303 | 21,393 | 20,478 | 81,108 | ||||||||||||||||
Federal income tax expense | 5,700 | 6,100 | 6,400 | 6,100 | 24,300 | ||||||||||||||||
Net income | $ | 13,234 | $ | 14,203 | $ | 14,993 | $ | 14,378 | $ | 56,808 | |||||||||||
Net income per common share: | |||||||||||||||||||||
Basic | $ | 0.48 | $ | 0.52 | $ | 0.54 | $ | 0.48 | $ | 2.02 | |||||||||||
Diluted | 0.48 | 0.51 | 0.53 | 0.48 | 2 | ||||||||||||||||
Cash dividends declared per common share | 0.21 | 0.21 | 0.22 | 0.23 | 0.87 | ||||||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Nature of Operations and Basis of Presentation) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Bank | ||
partnership | ||
Significant Accounting Policies [Line Items] | ||
Minimum Number of Days Past Due as to Interest or Principal Payments in Accruing Loans Moves to Nonperforming Loans | 90 days | |
Nature of Operations and Basis of Presentation | ||
Number of banks through which company operates | 1 | |
Number of regional banking units Chemical Bank operates through | 4 | |
Significant partner in low income housing tax credit partnership, number of partnerships | 3 | |
Investment in qualified affordable housing projects | $4.90 | $3.10 |
Unfunded obligation amount for variable interest entity | 2 | |
income tax expense attributable to qualified affordable housing projects | 0.4 | |
Percentage of FHLB advances secured by first lien real estate residential loans | 145.00% | |
Minimum percentage of tax benefit is recognized for the amount likely to be realized | 50.00% | |
Reserve for contingent income tax liabilities recorded | $0 |
Significant_Accounting_Policie3
Significant Accounting Policies (Business Combinations) (Details) (USD $) | 0 Months Ended | ||||
Oct. 31, 2014 | Dec. 07, 2012 | Apr. 30, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | |
Branches | |||||
Business Acquisition [Line Items] | |||||
Goodwill acquired | $180,128,000 | $120,164,000 | |||
Northwestern Bancorp [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition purchase price | 121,008,000 | ||||
Goodwill acquired | 59,964,000 | ||||
Intangibles acquired | 12,891,000 | ||||
Independent Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of branches acquired (branches) | 21 | ||||
Deposits acquired | 404,000,000 | ||||
Loans acquired | 44,000,000 | ||||
Acquisition purchase price | 8,100,000 | ||||
Premium paid on deposits purchased | 11,500,000 | ||||
Premium paid as a percent of deposits purchased (percent) | 2.85% | ||||
Discount on loans purchased (percent) | 1.75% | ||||
Goodwill acquired | 6,800,000 | ||||
Intangibles acquired | 5,600,000 | ||||
OAK [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition purchase price | 83,700,000 | ||||
Goodwill acquired | 43,500,000 | ||||
Intangibles acquired | $9,800,000 |
Significant_Accounting_Policie4
Significant Accounting Policies (Nonmarketable Equity Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Corporation's ownership in FHLB stock | $19 | $17.20 |
Corporation's ownership in FRB stock | $8.40 | $8.40 |
Significant_Accounting_Policie5
Significant Accounting Policies (Originated Loans) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Number of minimum days when principal or interest is past due is placed in nonaccrual category | 90 days |
Number of minimum days for a 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 |
Significant_Accounting_Policie6
Significant Accounting Policies (Loans Acquired in a Business Combination) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2010 | Oct. 31, 2014 | |
Pools | ||||
Business Acquisition [Line Items] | ||||
Outstanding contractual principal balance of loans with deteriorated quality of acquired loan portfolio | 698,163,000 | $294,697,000 | ||
OAK [Member] | ||||
Business Acquisition [Line Items] | ||||
Outstanding contractual principal balance of loans with deteriorated quality of acquired loan portfolio | 105,000,000 | |||
Outstanding contractual principal balance of loans without deteriorated quality of acquired loan portfolio | 578,000,000 | |||
Outstanding contractual principal balance of acquired loan portfolio | 683,000,000 | |||
Number of pools of aggregate acquired loans based upon common risk characteristics | 14 | |||
Northwestern Bancorp [Member] | ||||
Business Acquisition [Line Items] | ||||
Outstanding contractual principal balance of loans with deteriorated quality of acquired loan portfolio | 46,000,000 | |||
Outstanding contractual principal balance of loans without deteriorated quality of acquired loan portfolio | 461,000,000 | |||
Outstanding contractual principal balance of acquired loan portfolio | $507,000,000 | |||
Number of pools of aggregate acquired loans based upon common risk characteristics | 4 |
Significant_Accounting_Policie7
Significant Accounting Policies (Loans Modified Under Troubled Debt Restructuring) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | |
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 |
Number of minimum days when principal or interest is past due is placed in nonaccrual category | 90 days |
Significant_Accounting_Policie8
Significant Accounting Policies (Allowance for Loan Losses) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Accounting Policies [Abstract] | |
Minimum amount of loan reviewed for detailed credit quality | $0.25 |
Time period used for historical loan loss experience | 5 years |
Minimum amount of impaired loan secured by real estate requiring an updated annual appraisal | $0.25 |
Period of weighted average losses for the calculation of the allowance for loan losses | 5 years |
Significant_Accounting_Policie9
Significant Accounting Policies (Premises and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment, estimated useful lives | 40 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment, estimated useful lives | 25 years |
Other Depreciable Assets Excluding Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment, estimated useful lives | 10 years |
Other Depreciable Assets Excluding Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment, estimated useful lives | 3 years |
Recovered_Sheet1
Significant Accounting Policies (Other Real Estate) (Details) (Other Assets [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets [Member] | ||
Real Estate Acquired Through Foreclosure | $14.80 | $9.50 |
Other real estate - closed branch offices | $0.90 |
Recovered_Sheet2
Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) (Core deposit intangible assets [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 10 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period | 15 years |
Recovered_Sheet3
Significant Accounting Policies (Federal Home Loan Bank Advances) (Details) | Dec. 31, 2014 |
Accounting Policies [Abstract] | |
Percentage of FHLB advances secured by first lien real estate residential loans | 145.00% |
Acquisitions_Purchase_Accounti
Acquisitions Purchase Accounting Fair Value Adjustments (Details) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Purchase Accounting Fair Value Adjustments [Line Items] | |||
Goodwill | $180,128 | $120,164 | |
Northwestern Bancorp [Member] | |||
Purchase Accounting Fair Value Adjustments [Line Items] | |||
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock | 119,428 | ||
Business Combination, Consideration Transferred, Cash Paid Stock Option Cancellation Agreements | 1,580 | ||
Business Combination, Consideration Transferred | -121,008 | ||
Net Assets Acquired, Acquiree Shareholders Equity | 70,081 | ||
Purchase Accounting Fair Value Adjustment, Loans | -32,500 | ||
Purchase Accounting Fair Value Adjustment, Allowance for Loan Losses | 16,453 | ||
Purchase Accounting Fair Value Adjustment, Deferred Tax Asset, Net | 5,787 | ||
Purchase Accounting Fair Value Adjustment, Premises and Equipment | -8,961 | ||
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset | 12,891 | ||
Purchase Accounting Fair Value Adjustment, Mortgage Servicing Rights Asset | 1,568 | ||
Purchase Accounting Fair Value Adjustment, Acquiree Goodwill | -2,050 | ||
Purchase Accounting Fair Value Adjustment, Other Real Estate | -800 | ||
Purchase Accounting Fair Value Adjustment, Reserve for Sold Loans | -1,650 | ||
Purchase Accounting Fair Value Adjustment, Other Assets and Liabilities, Net | 225 | ||
Net Assets Acquired After Purchase Accounting Fair Value Adjustments | 61,044 | ||
Goodwill | $59,964 |
Acquisitions_Schedule_of_Purch
Acquisitions Schedule of Purchase Price Allocation (Details) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Purchase Price Allocation [Line Items] | |||
Goodwill | $180,128 | $120,164 | |
Northwestern Bancorp [Member] | |||
Schedule of Purchase Price Allocation [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 106,748 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 230,358 | ||
Business Combination, Acquired Receivables, Fair Value | 475,285 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 18,770 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 8,557 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 14,211 | ||
Goodwill | 59,964 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 12,891 | ||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Mortgage Servicing Rights Asset | 9,235 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 936,019 | ||
Business Combination Deposits Assumed | 794,447 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 10,310 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 10,254 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 815,011 | ||
Business Combination, Consideration Transferred | ($121,008) |
Acquisitions_Unaudited_Pro_For
Acquisitions Unaudited Pro Forma Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Weighted Average Number of Shares Outstanding, Basic | 31,367 | 28,183 | 27,492 |
Weighted Average Number of Shares Outstanding, Diluted | 31,588 | 28,352 | 27,583 |
Northwestern Bancorp [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Pro Forma interest and dividend income | 247,748 | 241,499 | |
Business Acquisition, Pro Forma interest expense | 16,221 | 20,014 | |
Business Acquisition, Pro Forma net interest income | 231,527 | 221,485 | |
Business Acquisition, Pro Forma provision for loan losses | 6,825 | 18,329 | |
Business Acquisition, Pro Forma net interest income after provision for loan losses | 224,702 | 203,156 | |
Business Acquisition, Pro Forma noninterest income | 79,229 | 82,492 | |
Business Acquisition, Pro Forma noninterest expense | 201,289 | 206,025 | |
Business Acquisition, Pro Forma pre-tax net income | 102,642 | 79,623 | |
Business Acquisition, Pro Forma federal income tax expense | 32,209 | 23,777 | |
Business Acquisition, Pro Forma Net Income (Loss) | 70,433 | 55,846 | |
Business Acquisition, Pro Forma Earnings Per Share, Basic | 2.25 | 1.98 | |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | 2.23 | 1.97 |
Acquisitions_Activity_for_Acqu
Acquisitions Activity for Acquired Loans (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Activity for accretable yield includes contractually due interest of acquired loans | ||||
Balance at beginning of year | $32,610 | $49,390 | ||
Accretable yield added during the year from acquisitions | 110,003 | 0 | ||
Accretable Yield Additions, Net of Reductions | 3,806 | [1] | -29 | [1] |
Accretion recognized into interest income | -18,458 | -16,876 | ||
Reclassification from nonaccretable difference | 10,000 | 125 | ||
Balance at end of year | 137,961 | 32,610 | ||
Northwestern Bancorp [Member] | ||||
Activity for accretable yield includes contractually due interest of acquired loans | ||||
Balance at beginning of year | 0 | |||
Accretable yield added during the year from acquisitions | 110,003 | |||
Accretable Yield Additions, Net of Reductions | -1,605 | [1] | ||
Accretion recognized into interest income | -3,723 | |||
Reclassification from nonaccretable difference | 0 | |||
Balance at end of year | 104,675 | |||
OAK [Member] | ||||
Activity for accretable yield includes contractually due interest of acquired loans | ||||
Balance at beginning of year | 32,610 | 49,390 | ||
Accretable yield added during the year from acquisitions | 0 | 0 | ||
Accretable Yield Additions, Net of Reductions | 5,411 | [1] | -29 | [1] |
Accretion recognized into interest income | -14,735 | -16,876 | ||
Reclassification from nonaccretable difference | 10,000 | 125 | ||
Balance at end of year | $33,286 | $32,610 | ||
[1] | Represents additions in 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 $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Dec. 07, 2012 | Apr. 30, 2010 | Jan. 05, 2015 | |
Branches | Offices | |||||
Business Acquisition [Line Items] | ||||||
Goodwill | $180,128,000 | $120,164,000 | ||||
Accretable yield | 110,003,000 | 0 | ||||
Reclassification from nonaccretable difference | 10,000,000 | 125,000 | ||||
Monarch Community Bancorp [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Common stock exchange ratio | 0.0982 | |||||
Acquisition purchase price | 27,000,000 | |||||
Northwestern Bancorp [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition purchase price | 121,008,000 | |||||
Acquisition-related transaction expenses | 5,800,000 | |||||
Goodwill | 59,964,000 | |||||
Intangibles acquired | 12,891,000 | |||||
Service provided by acquiree bank through number of branches | 25 | |||||
Assets of acquiree company | 815,000,000 | |||||
Fair value of loans acquired in acquisition | 475,285,000 | |||||
Deposits of acquiree company | 794,447,000 | |||||
Contractually required principal and interest payments of loan portfolio | 507,000,000 | |||||
Contractually required interest payments of loan portfolio | 112,000,000 | |||||
Expected principal cash flows of contractually required acquired loan portfolio | 481,000,000 | |||||
Expected interest cash flows of contractually required acquired loan portfolio | 104,000,000 | |||||
Nonaccretable difference | 34,000,000 | |||||
Expected credit losses | 26,000,000 | |||||
Accretable yield | 110,003,000 | |||||
Outstanding contractual principal balance of acquired loan portfolio | 485,000,000 | |||||
Carrying amount of acquired loan portfolio | 452,000,000 | |||||
Reclassification from nonaccretable difference | 0 | |||||
Independent Bank [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition purchase price | 8,100,000 | |||||
Number of branches acquired (branches) | 21 | |||||
Deposits acquired | 404,000,000 | |||||
Loans acquired | 44,000,000 | |||||
Premium paid on deposits purchased | 11,500,000 | |||||
Premium paid as a percent of deposits purchased (percent) | 2.85% | |||||
Discount on loans purchased (percent) | 1.75% | |||||
Goodwill | 6,800,000 | |||||
Intangibles acquired | 5,600,000 | |||||
OAK [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition purchase price | 83,700,000 | |||||
Goodwill | 43,500,000 | |||||
Intangibles acquired | 9,800,000 | |||||
Service provided by acquiree bank through number of branches | 14 | |||||
Assets of acquiree company | 820,000,000 | |||||
Fair value of loans acquired in acquisition | 627,000,000 | |||||
Deposits of acquiree company | 693,000,000 | |||||
Brokered deposits of acquiree company | 193,000,000 | |||||
Accretable yield | 0 | 0 | ||||
Outstanding contractual principal balance of acquired loan portfolio | 268,000,000 | 320,000,000 | ||||
Carrying amount of acquired loan portfolio | 246,000,000 | 295,000,000 | ||||
Reclassification from nonaccretable difference | 10,000,000 | 125,000 | ||||
Core deposit intangible assets [Member] | Independent Bank [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangibles acquired | 5,600,000 | |||||
Lake Michigan Financial Corp [Member] | Lake Michigan Financial Corp [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Common stock exchange ratio | 1.326 | |||||
Acquisition purchase price | $184,100,000 | |||||
Cash purchase price per share | $16.64 |
Investment_Securities_Summary_
Investment Securities (Summary of Amortized Cost and Fair Value of Available-for-Sale Investment Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | $749,187 | $688,385 |
Investment securities available-for-sale, Unrealized Gains | 3,003 | 3,587 |
Investment securities available-for-sale, Unrealized Losses | 3,326 | 7,402 |
Available-for-sale, at fair value | 748,864 | 684,570 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 8,272 | |
Investment securities available-for-sale, Unrealized Gains | 0 | |
Investment securities available-for-sale, Unrealized Losses | 13 | |
Available-for-sale, at fair value | 8,259 | |
Government sponsored agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 263,658 | 93,895 |
Investment securities available-for-sale, Unrealized Gains | 356 | 250 |
Investment securities available-for-sale, Unrealized Losses | 511 | 382 |
Available-for-sale, at fair value | 263,503 | 93,763 |
State and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 45,157 | 42,450 |
Investment securities available-for-sale, Unrealized Gains | 1,087 | 1,355 |
Investment securities available-for-sale, Unrealized Losses | 17 | 7 |
Available-for-sale, at fair value | 46,227 | 43,798 |
Residential mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 240,465 | 303,495 |
Investment securities available-for-sale, Unrealized Gains | 885 | 968 |
Investment securities available-for-sale, Unrealized Losses | 1,543 | 5,097 |
Available-for-sale, at fair value | 239,807 | 299,366 |
Collateralized mortgage obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 145,316 | 182,128 |
Investment securities available-for-sale, Unrealized Gains | 261 | 452 |
Investment securities available-for-sale, Unrealized Losses | 1,194 | 1,639 |
Available-for-sale, at fair value | 144,383 | 180,941 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 44,930 | 65,028 |
Investment securities available-for-sale, Unrealized Gains | 213 | 499 |
Investment securities available-for-sale, Unrealized Losses | 48 | 252 |
Available-for-sale, at fair value | 45,095 | 65,275 |
Preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 1,389 | 1,389 |
Investment securities available-for-sale, Unrealized Gains | 201 | 63 |
Investment securities available-for-sale, Unrealized Losses | 0 | 25 |
Available-for-sale, at fair value | $1,590 | $1,427 |
Investment_Securities_Summary_1
Investment Securities (Summary of Amortized Cost and Fair Value of Held-to-Maturity Investment Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Held-to-maturity Securities | ||
Investment securities held-to-maturity, Amortized Cost | $316,413 | $273,905 |
Investment securities held-to-maturity, Unrealized Gains | 7,294 | 5,462 |
Investment securities held-to-maturity, Unrealized Losses | 7,967 | 11,096 |
Held-to-maturity Securities, Fair Value | 315,740 | 268,271 |
State and political subdivisions [Member] | ||
Held-to-maturity Securities | ||
Investment securities held-to-maturity, Amortized Cost | 305,913 | 263,405 |
Investment securities held-to-maturity, Unrealized Gains | 7,294 | 5,462 |
Investment securities held-to-maturity, Unrealized Losses | 4,557 | 6,846 |
Held-to-maturity Securities, Fair Value | 308,650 | 262,021 |
Trust preferred securities [Member] | ||
Held-to-maturity Securities | ||
Investment securities held-to-maturity, Amortized Cost | 10,500 | 10,500 |
Investment securities held-to-maturity, Unrealized Gains | 0 | 0 |
Investment securities held-to-maturity, Unrealized Losses | 3,410 | 4,250 |
Held-to-maturity Securities, Fair Value | $7,090 | $6,250 |
Investment_Securities_Summary_2
Investment Securities (Summary of the Amortized Cost and Fair Value of Investment Securities by Maturity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment Securities Available-for-Sale: | ||
Due in one year or less, Amortized Cost | $194,598 | |
Due after one year through five years, Amortized Cost | 487,952 | |
Due after five years through ten years, Amortized Cost | 61,825 | |
Due after ten years, Amortized Cost | 3,423 | |
Preferred stock, Amortized Cost | 1,389 | |
Total Available-for-sale Securities, Amortized Cost | 749,187 | |
Due in one year or less , Fair Value | 194,475 | |
Due after one year through five years, Fair Value | 487,511 | |
Due after five years through ten years, Fair Value | 61,887 | |
Due after ten years, Fair Value | 3,401 | |
Preferred stock, Fair Value | 1,590 | |
Total Available-for-sale securities, Fair Value | 748,864 | |
Investment Securities Held-to-Maturity: | ||
Due in one year or less, Amortized Cost | 37,069 | |
Due after one year through five years, Amortized Cost | 131,711 | |
Due after five years through ten years, Amortized Cost | 96,736 | |
Due after ten years, Amortized Cost | 50,897 | |
Total Held-to-maturity securities, Amortized Cost | 316,413 | 273,905 |
Due in one year or less , Fair Value | 37,222 | |
Due after one year through five years, Fair Value | 134,918 | |
Due after five years through ten years, Fair Value | 98,774 | |
Due after ten years, Fair Value | 44,826 | |
Total Held-to-maturity securities, Fair Value | $315,740 | $268,271 |
Investment_Securities_Summary_3
Investment Securities (Summary of Investment Securities with Gross Unrealized Losses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | $317,885 | $548,723 |
Less Than 12 Months, Gross Unrealized Losses | 3,998 | 13,007 |
12 Months or More, Fair Value | 302,630 | 73,865 |
12 Months or More, Gross Unrealized Losses | 7,295 | 5,491 |
Total, Fair Value | 620,515 | 622,588 |
Total, Gross Unrealized Losses | 11,293 | 18,498 |
US Treasury Securities [Member] | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | 8,259 | |
Less Than 12 Months, Gross Unrealized Losses | 13 | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Gross Unrealized Losses | 0 | |
Total, Fair Value | 8,259 | |
Total, Gross Unrealized Losses | 13 | |
Government sponsored agencies [Member] | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | 166,963 | 47,352 |
Less Than 12 Months, Gross Unrealized Losses | 406 | 205 |
12 Months or More, Fair Value | 31,927 | 14,031 |
12 Months or More, Gross Unrealized Losses | 105 | 177 |
Total, Fair Value | 198,890 | 61,383 |
Total, Gross Unrealized Losses | 511 | 382 |
State and political subdivisions [Member] | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | 62,310 | 126,345 |
Less Than 12 Months, Gross Unrealized Losses | 3,348 | 6,475 |
12 Months or More, Fair Value | 36,847 | 19,074 |
12 Months or More, Gross Unrealized Losses | 1,226 | 378 |
Total, Fair Value | 99,157 | 145,419 |
Total, Gross Unrealized Losses | 4,574 | 6,853 |
Residential mortgage-backed securities [Member] | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | 17,276 | 274,076 |
Less Than 12 Months, Gross Unrealized Losses | 52 | 5,097 |
12 Months or More, Fair Value | 180,194 | 0 |
12 Months or More, Gross Unrealized Losses | 1,491 | 0 |
Total, Fair Value | 197,470 | 274,076 |
Total, Gross Unrealized Losses | 1,543 | 5,097 |
Collateralized mortgage obligations [Member] | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | 63,077 | 84,995 |
Less Than 12 Months, Gross Unrealized Losses | 179 | 1,127 |
12 Months or More, Fair Value | 31,620 | 14,684 |
12 Months or More, Gross Unrealized Losses | 1,015 | 512 |
Total, Fair Value | 94,697 | 99,679 |
Total, Gross Unrealized Losses | 1,194 | 1,639 |
Corporate bonds [Member] | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | 0 | 14,931 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 78 |
12 Months or More, Fair Value | 14,952 | 19,826 |
12 Months or More, Gross Unrealized Losses | 48 | 174 |
Total, Fair Value | 14,952 | 34,757 |
Total, Gross Unrealized Losses | 48 | 252 |
Trust preferred securities [Member] | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | 0 | 0 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 7,090 | 6,250 |
12 Months or More, Gross Unrealized Losses | 3,410 | 4,250 |
Total, Fair Value | 7,090 | 6,250 |
Total, Gross Unrealized Losses | 3,410 | 4,250 |
Preferred stock [Member] | ||
Summary of continuous unrealized loss position of securities | ||
Less Than 12 Months, Fair Value | 0 | 1,024 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 25 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 1,024 |
Total, Gross Unrealized Losses | $0 | $25 |
Investment_Securities_Textual_
Investment Securities (Textual) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
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 | 6.8 | |
Fair value of trust preferred investment security two | 0.3 | |
Unrealized loss on trust preferred investment securities | 3.4 | |
Unrealized loss on trust preferred securities. | 3.4 | |
Securities pledged as collateral | $493 | $616 |
Loans_Summary_of_Loans_Details
Loans (Summary of Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of loans under portfolio | ||
Commercial loan | $3,084,024 | $2,518,826 |
Consumer loan | 2,604,206 | 2,128,795 |
Total loans | 5,688,230 | 4,647,621 |
Commercial [Member] | ||
Summary of loans under portfolio | ||
Commercial loan | 1,354,881 | 1,176,307 |
Real estate commercial [Member] | ||
Summary of loans under portfolio | ||
Commercial loan | 1,557,648 | 1,232,658 |
Real estate construction [Member] | ||
Summary of loans under portfolio | ||
Commercial loan | 152,745 | 89,795 |
Land development [Member] | ||
Summary of loans under portfolio | ||
Commercial loan | 18,750 | 20,066 |
Real estate residential [Member] | ||
Summary of loans under portfolio | ||
Consumer loan | 1,110,390 | 960,423 |
Consumer installment [Member] | ||
Summary of loans under portfolio | ||
Consumer loan | 829,570 | 644,769 |
Home equity [Member] | ||
Summary of loans under portfolio | ||
Consumer loan | $664,246 | $523,603 |
Loans_Summary_of_Recorded_Inve
Loans (Summary of Recorded Investment of Commercial Loans by Risk Rating Categories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | $3,084,024 | $2,518,826 |
Commercial [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 1,354,881 | 1,176,307 |
Real estate commercial [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 1,557,648 | 1,232,658 |
Real estate construction [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 152,745 | 89,795 |
Land development [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 18,750 | 20,066 |
Originated Portfolio [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 2,603,592 | 2,268,619 |
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 | 2,423,966 | 2,098,995 |
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 | 74,942 | 55,953 |
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 | 62,913 | 64,019 |
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 | 41,762 | 48,674 |
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 | 9 | 978 |
Originated Portfolio [Member] | Commercial [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 1,255,898 | 1,092,693 |
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 | 1,171,817 | 1,024,461 |
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 | 37,800 | 20,082 |
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 | 29,863 | 29,776 |
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 | 16,417 | 17,414 |
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 | 1 | 960 |
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 | 1,204,426 | 1,085,187 |
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 | 1,114,529 | 991,964 |
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 | 34,996 | 34,248 |
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 | 29,935 | 30,377 |
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 | 24,958 | 28,580 |
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 | 8 | 18 |
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 | 138,740 | 77,459 |
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 | 134,668 | 75,696 |
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 | 1,408 | 654 |
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 | 2,502 | 738 |
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 | 162 | 371 |
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 |
Originated Portfolio [Member] | Land development [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 4,528 | 13,280 |
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 | 2,952 | 6,874 |
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 | 738 | 969 |
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 | 613 | 3,128 |
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 | 225 | 2,309 |
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 |
Acquired Portfolio [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 480,432 | 250,207 |
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 | 423,592 | 224,419 |
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 | 21,968 | 10,494 |
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 | 16,764 | 8,644 |
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 | 18,108 | 6,650 |
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 |
Acquired Portfolio [Member] | Commercial [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 98,983 | 83,614 |
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 | 76,780 | 73,763 |
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 | 12,687 | 5,472 |
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 | 4,089 | 852 |
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 | 5,427 | 3,527 |
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 |
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 | 353,222 | 147,471 |
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 | 321,018 | 133,653 |
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 | 8,698 | 5,022 |
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 | 12,478 | 7,792 |
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 | 11,028 | 1,004 |
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 |
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 | 14,005 | 12,336 |
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 | 14,005 | 12,336 |
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 |
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 |
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 |
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 |
Acquired Portfolio [Member] | Land development [Member] | ||
Recorded investment of loans in commercial loan portfolio by risk rating categories | ||
Recorded investment (loan balance), Commercial, Total | 14,222 | 6,786 |
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 | 11,789 | 4,667 |
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 | 583 | 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 | 197 | 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 | 1,653 | 2,119 |
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 |
Loans_Summary_of_Recorded_Inve1
Loans (Summary of Recorded Investment of Consumer Loans by Risk Rating Categories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 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 | $2,604,206 | $2,128,795 |
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 | 1,110,390 | 960,423 |
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 | 829,570 | 644,769 |
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 | 664,246 | 523,603 |
Originated Portfolio [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 | 2,386,475 | 2,084,305 |
Originated Portfolio [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 | 998,001 | 948,881 |
Originated Portfolio [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 | 819,378 | 643,046 |
Originated Portfolio [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 | 569,096 | 492,378 |
Originated Portfolio [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 | 2,372,503 | 2,066,113 |
Originated Portfolio [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 | 987,542 | 934,747 |
Originated Portfolio [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 | 818,878 | 642,370 |
Originated Portfolio [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 | 566,083 | 488,996 |
Originated Portfolio [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 | 13,972 | 18,192 |
Originated Portfolio [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 | 10,459 | 14,134 |
Originated Portfolio [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 | 500 | 676 |
Originated Portfolio [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 | 3,013 | 3,382 |
Acquired Portfolio [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 | 217,731 | 44,490 |
Acquired Portfolio [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 | 112,389 | 11,542 |
Acquired Portfolio [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 | 10,192 | 1,723 |
Acquired Portfolio [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 | 95,150 | 31,225 |
Acquired Portfolio [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 | 215,971 | 44,386 |
Acquired Portfolio [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 | 111,101 | 11,481 |
Acquired Portfolio [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 | 10,174 | 1,723 |
Acquired Portfolio [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 | 94,696 | 31,182 |
Acquired Portfolio [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 | 1,760 | 104 |
Acquired Portfolio [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 | 1,288 | 61 |
Acquired Portfolio [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 | 18 | 0 |
Acquired Portfolio [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 | $454 | $43 |
Summary_of_nonperforming_loans
(Summary of nonperforming loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of nonperforming loans | ||
Total nonperforming TDRs | $101,322 | $94,943 |
Total loans | 5,688,230 | 4,647,621 |
Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 50,644 | 61,897 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 2,073 | 1,997 |
Commercial Loan Portfolio [Member] | ||
Summary of nonperforming loans | ||
Total nonperforming TDRs | 77,047 | 72,214 |
Total loans | 3,084,024 | 2,518,826 |
Consumer Loan Portfolio [Member] | ||
Summary of nonperforming loans | ||
Total nonperforming TDRs | 24,275 | 22,729 |
Total loans | 2,604,206 | 2,128,795 |
Commercial [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 16,418 | 18,374 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 170 | 536 |
Real estate commercial [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 24,966 | 28,598 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 190 |
Real Estate Construction Loans [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 162 | 371 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 |
Land Development Loans [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 225 | 2,309 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 |
Real estate residential [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 6,706 | 8,921 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 557 | 537 |
Consumer Installment Loans [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 500 | 676 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 |
Home Equity Loans [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 1,667 | 2,648 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 1,346 | 734 |
Nonperforming [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 50,644 | 61,897 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 2,073 | 1,997 |
Total nonperforming TDRs | 18,467 | 18,090 |
Total loans | 71,184 | 81,984 |
Nonperforming [Member] | Commercial Loan Portfolio [Member] | ||
Summary of nonperforming loans | ||
Total nonperforming TDRs | 15,271 | 13,414 |
Nonperforming [Member] | Consumer Loan Portfolio [Member] | ||
Summary of nonperforming loans | ||
Total nonperforming TDRs | 3,196 | 4,676 |
Nonperforming [Member] | Commercial [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 16,418 | 18,374 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 170 | 536 |
Nonperforming [Member] | Real estate commercial [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 24,966 | 28,598 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 190 |
Nonperforming [Member] | Real Estate Construction Loans [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 162 | 371 |
Nonperforming [Member] | Land Development Loans [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 225 | 2,309 |
Nonperforming [Member] | Real estate residential [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 6,706 | 8,921 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 557 | 537 |
Nonperforming [Member] | Consumer Installment Loans [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 500 | 676 |
Nonperforming [Member] | Home Equity Loans [Member] | Originated Portfolio Segment [Member] | ||
Summary of nonperforming loans | ||
Total nonaccrual loans | 1,667 | 2,648 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | $1,346 | $734 |
Loans_Summary_of_Impaired_Loan
Loans (Summary of Impaired Loans by Classes of Loans) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | $23,234 | $22,501 | |
Unpaid Principal Balance | 23,648 | 23,029 | |
Related Valuation Allowance | 1,338 | 1,591 | |
Average Annual Recorded Investment | 25,556 | 33,587 | |
Interest Income Recognized While on Impaired Status | 1,252 | 1,123 | |
Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 111,433 | 106,844 | |
Unpaid Principal Balance | 141,622 | 130,361 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 102,320 | 87,434 | |
Interest Income Recognized While on Impaired Status | 3,101 | 2,641 | |
Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 134,667 | 129,345 | |
Unpaid Principal Balance | 165,270 | 153,390 | |
Related Valuation Allowance | 1,338 | 1,591 | |
Average Annual Recorded Investment | 127,876 | 121,021 | 133,000 |
Interest Income Recognized While on Impaired Status | 4,353 | 3,764 | 3,700 |
Commercial [Member] | Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 966 | 2,517 | |
Unpaid Principal Balance | 1,040 | 2,656 | |
Related Valuation Allowance | 293 | 728 | |
Average Annual Recorded Investment | 2,117 | 5,398 | |
Interest Income Recognized While on Impaired Status | 0 | 0 | |
Commercial [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 38,094 | 38,838 | |
Unpaid Principal Balance | 44,557 | 44,377 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 39,020 | 24,231 | |
Interest Income Recognized While on Impaired Status | 1,375 | 990 | |
Commercial [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 39,060 | 41,355 | |
Unpaid Principal Balance | 45,597 | 47,033 | |
Related Valuation Allowance | 293 | 728 | |
Average Annual Recorded Investment | 41,137 | 29,629 | 27,700 |
Interest Income Recognized While on Impaired Status | 1,375 | 990 | 1,000 |
Real estate commercial [Member] | Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 2,587 | 2,576 | |
Unpaid Principal Balance | 2,927 | 2,965 | |
Related Valuation Allowance | 710 | 353 | |
Average Annual Recorded Investment | 3,699 | 9,725 | |
Interest Income Recognized While on Impaired Status | 0 | 0 | |
Real estate commercial [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 60,616 | 48,220 | |
Unpaid Principal Balance | 82,693 | 61,444 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 49,676 | 41,100 | |
Interest Income Recognized While on Impaired Status | 1,567 | 1,348 | |
Real estate commercial [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 63,203 | 50,796 | |
Unpaid Principal Balance | 85,620 | 64,409 | |
Related Valuation Allowance | 710 | 353 | |
Average Annual Recorded Investment | 53,375 | 50,825 | 58,100 |
Interest Income Recognized While on Impaired Status | 1,567 | 1,348 | 1,000 |
Real estate construction [Member] | Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 0 | 56 | |
Interest Income Recognized While on Impaired Status | 0 | 0 | |
Real estate construction [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 162 | 371 | |
Unpaid Principal Balance | 255 | 478 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 164 | 314 | |
Interest Income Recognized While on Impaired Status | 0 | 0 | |
Real estate construction [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 162 | 371 | |
Unpaid Principal Balance | 255 | 478 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 164 | 370 | 700 |
Interest Income Recognized While on Impaired Status | 0 | 0 | |
Land development [Member] | Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | 0 | 0 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 0 | 719 | |
Interest Income Recognized While on Impaired Status | 0 | 0 | |
Land development [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 1,928 | 7,170 | |
Unpaid Principal Balance | 3,484 | 11,817 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 3,551 | 9,075 | |
Interest Income Recognized While on Impaired Status | 131 | 303 | |
Land development [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 1,928 | 7,170 | |
Unpaid Principal Balance | 3,484 | 11,817 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 3,551 | 9,794 | 9,100 |
Interest Income Recognized While on Impaired Status | 131 | 303 | 400 |
Real estate residential [Member] | Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 19,681 | 17,408 | |
Unpaid Principal Balance | 19,681 | 17,408 | |
Related Valuation Allowance | 335 | 510 | |
Average Annual Recorded Investment | 19,740 | 17,689 | |
Interest Income Recognized While on Impaired Status | 1,252 | 1,123 | |
Real estate residential [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 7,994 | 8,921 | |
Unpaid Principal Balance | 7,994 | 8,921 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 7,005 | 9,147 | |
Interest Income Recognized While on Impaired Status | 15 | 0 | |
Real estate residential [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 27,675 | 26,329 | |
Unpaid Principal Balance | 27,675 | 26,329 | |
Related Valuation Allowance | 335 | 510 | |
Average Annual Recorded Investment | 26,745 | 26,836 | 33,400 |
Interest Income Recognized While on Impaired Status | 1,267 | 1,123 | 1,400 |
Consumer installment [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 518 | 676 | |
Unpaid Principal Balance | 518 | 676 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 602 | 653 | |
Interest Income Recognized While on Impaired Status | 1 | 0 | |
Consumer installment [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 518 | 676 | |
Unpaid Principal Balance | 518 | 676 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 602 | 653 | 1,100 |
Interest Income Recognized While on Impaired Status | 1 | 0 | |
Home equity [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 2,121 | 2,648 | |
Unpaid Principal Balance | 2,121 | 2,648 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 2,302 | 2,914 | |
Interest Income Recognized While on Impaired Status | 12 | 0 | |
Home equity [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 2,121 | 2,648 | |
Unpaid Principal Balance | 2,121 | 2,648 | |
Related Valuation Allowance | 0 | 0 | |
Average Annual Recorded Investment | 2,302 | 2,914 | 2,900 |
Interest Income Recognized While on Impaired Status | $12 | $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 $) | Dec. 31, 2014 | Dec. 31, 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 | $20,595 | $19,581 |
Financing receivable, recorded investment 61 to 89 days past due | 3,352 | 7,316 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 2,073 | 1,997 |
Financing receivable, recorded investment, Non-accrual loans | 50,644 | 61,897 |
Financing receivable recorded investment, Total past due | 76,664 | 90,791 |
Financing receivable, recorded investment, Current | 4,913,403 | 4,262,133 |
Financing receivable, recorded investment, Total loans | 4,990,067 | 4,352,924 |
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 | 4,033 | 4,748 |
Financing receivable, recorded investment 61 to 89 days past due | 743 | 865 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 170 | 536 |
Financing receivable, recorded investment, Non-accrual loans | 16,418 | 18,374 |
Financing receivable recorded investment, Total past due | 21,364 | 24,523 |
Financing receivable, recorded investment, Current | 1,234,534 | 1,068,170 |
Financing receivable, recorded investment, Total loans | 1,255,898 | 1,092,693 |
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 | 7,515 | 8,560 |
Financing receivable, recorded investment 61 to 89 days past due | 1,383 | 1,604 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 190 |
Financing receivable, recorded investment, Non-accrual loans | 24,966 | 28,598 |
Financing receivable recorded investment, Total past due | 33,864 | 38,952 |
Financing receivable, recorded investment, Current | 1,170,562 | 1,046,235 |
Financing receivable, recorded investment, Total loans | 1,204,426 | 1,085,187 |
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 | 262 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 4,107 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 |
Financing receivable, recorded investment, Non-accrual loans | 162 | 371 |
Financing receivable recorded investment, Total past due | 424 | 4,478 |
Financing receivable, recorded investment, Current | 138,316 | 72,981 |
Financing receivable, recorded investment, Total loans | 138,740 | 77,459 |
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 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 |
Financing receivable, recorded investment, Non-accrual loans | 225 | 2,309 |
Financing receivable recorded investment, Total past due | 225 | 2,309 |
Financing receivable, recorded investment, Current | 4,303 | 10,971 |
Financing receivable, recorded investment, Total loans | 4,528 | 13,280 |
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 | 2,126 | 2,191 |
Financing receivable, recorded investment 61 to 89 days past due | 54 | 103 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 557 | 537 |
Financing receivable, recorded investment, Non-accrual loans | 6,706 | 8,921 |
Financing receivable recorded investment, Total past due | 9,443 | 11,752 |
Financing receivable, recorded investment, Current | 988,558 | 937,129 |
Financing receivable, recorded investment, Total loans | 998,001 | 948,881 |
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 | 3,620 | 2,630 |
Financing receivable, recorded investment 61 to 89 days past due | 512 | 359 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 |
Financing receivable, recorded investment, Non-accrual loans | 500 | 676 |
Financing receivable recorded investment, Total past due | 4,632 | 3,665 |
Financing receivable, recorded investment, Current | 814,746 | 639,381 |
Financing receivable, recorded investment, Total loans | 819,378 | 643,046 |
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 | 3,039 | 1,452 |
Financing receivable, recorded investment 61 to 89 days past due | 660 | 278 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,346 | 734 |
Financing receivable, recorded investment, Non-accrual loans | 1,667 | 2,648 |
Financing receivable recorded investment, Total past due | 6,712 | 5,112 |
Financing receivable, recorded investment, Current | 562,384 | 487,266 |
Financing receivable, recorded investment, Total loans | 569,096 | 492,378 |
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 | 2,994 | 397 |
Financing receivable, recorded investment 61 to 89 days past due | 461 | 184 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 19,892 | 9,787 |
Financing receivable, recorded investment, Non-accrual loans | 0 | 0 |
Financing receivable recorded investment, Total past due | 23,347 | 10,368 |
Financing receivable, recorded investment, Current | 674,816 | 284,329 |
Financing receivable, recorded investment, Total loans | 698,163 | 294,697 |
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 | 133 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 5,427 | 5,656 |
Financing receivable, recorded investment, Non-accrual loans | 0 | 0 |
Financing receivable recorded investment, Total past due | 5,560 | 5,656 |
Financing receivable, recorded investment, Current | 93,423 | 77,958 |
Financing receivable, recorded investment, Total loans | 98,983 | 83,614 |
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 | 2,014 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 352 | 133 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 11,052 | 1,695 |
Financing receivable, recorded investment, Non-accrual loans | 0 | 0 |
Financing receivable recorded investment, Total past due | 13,418 | 1,828 |
Financing receivable, recorded investment, Current | 339,804 | 145,643 |
Financing receivable, recorded investment, Total loans | 353,222 | 147,471 |
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 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 |
Financing receivable, recorded investment, Non-accrual loans | 0 | 0 |
Financing receivable recorded investment, Total past due | 0 | 0 |
Financing receivable, recorded investment, Current | 14,005 | 12,336 |
Financing receivable, recorded investment, Total loans | 14,005 | 12,336 |
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 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,653 | 2,332 |
Financing receivable, recorded investment, Non-accrual loans | 0 | 0 |
Financing receivable recorded investment, Total past due | 1,653 | 2,332 |
Financing receivable, recorded investment, Current | 12,569 | 4,454 |
Financing receivable, recorded investment, Total loans | 14,222 | 6,786 |
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 | 156 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 18 | 61 |
Financing receivable, recorded investment, Non-accrual loans | 0 | 0 |
Financing receivable recorded investment, Total past due | 174 | 61 |
Financing receivable, recorded investment, Current | 112,215 | 11,481 |
Financing receivable, recorded investment, Total loans | 112,389 | 11,542 |
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 | 55 | 3 |
Financing receivable, recorded investment 61 to 89 days past due | 3 | 51 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 454 | 0 |
Financing receivable, recorded investment, Non-accrual loans | 0 | 0 |
Financing receivable recorded investment, Total past due | 512 | 54 |
Financing receivable, recorded investment, Current | 9,680 | 1,669 |
Financing receivable, recorded investment, Total loans | 10,192 | 1,723 |
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 | 636 | 394 |
Financing receivable, recorded investment 61 to 89 days past due | 106 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,288 | 43 |
Financing receivable, recorded investment, Non-accrual loans | 0 | 0 |
Financing receivable recorded investment, Total past due | 2,030 | 437 |
Financing receivable, recorded investment, Current | 93,120 | 30,788 |
Financing receivable, recorded investment, Total loans | $95,150 | $31,225 |
Loans_Summary_of_TDRs_Details
Loans (Summary of TDRs) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of corporation's TDRs | ||
Total TDRs | $101,322 | $94,943 |
Commercial Loan Portfolio [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 77,047 | 72,214 |
Consumer Loan Portfolio [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 24,275 | 22,729 |
Performing [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 45,664 | 39,571 |
Performing [Member] | Commercial Loan Portfolio [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 29,179 | 26,839 |
Performing [Member] | Consumer Loan Portfolio [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 16,485 | 12,732 |
Nonperforming [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 18,467 | 18,090 |
Nonperforming [Member] | Commercial Loan Portfolio [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 15,271 | 13,414 |
Nonperforming [Member] | Consumer Loan Portfolio [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 3,196 | 4,676 |
Substandard Nonaccrual [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 37,191 | 37,282 |
Substandard Nonaccrual [Member] | Commercial Loan Portfolio [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | 32,597 | 31,961 |
Substandard Nonaccrual [Member] | Consumer Loan Portfolio [Member] | ||
Schedule of corporation's TDRs | ||
Total TDRs | $4,594 | $5,321 |
Loans_Summary_of_Performing_an
Loans (Summary of Performing and Nonperforming TDRs Modified During the Period) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans | Loans | Loans | |
Commercial Loan Portfolio [Member] | |||
Schedule providing information on performing and nonperforming TDRs | |||
Performing and nonperforming modified TDRs, Number of loans | 219 | 199 | 300 |
Performing and nonperforming modified TDRs, Pre-modification recorded investment | $30,112 | $35,821 | $46,486 |
Performing and nonperforming modified TDRs, Post-modification recorded investment | 30,086 | 35,718 | 46,226 |
Commercial [Member] | Commercial Loan Portfolio [Member] | |||
Schedule providing information on performing and nonperforming TDRs | |||
Performing and nonperforming modified TDRs, Number of loans | 53 | 57 | 91 |
Performing and nonperforming modified TDRs, Pre-modification recorded investment | 13,781 | 12,123 | 13,720 |
Performing and nonperforming modified TDRs, Post-modification recorded investment | 13,781 | 12,123 | 13,720 |
Real estate commercial [Member] | Commercial Loan Portfolio [Member] | |||
Schedule providing information on performing and nonperforming TDRs | |||
Performing and nonperforming modified TDRs, Number of loans | 46 | 49 | 77 |
Performing and nonperforming modified TDRs, Pre-modification recorded investment | 12,075 | 16,222 | 17,328 |
Performing and nonperforming modified TDRs, Post-modification recorded investment | 12,075 | 16,222 | 17,328 |
Real Estate Construction Loans [Member] | Commercial Loan Portfolio [Member] | |||
Schedule providing information on performing and nonperforming TDRs | |||
Performing and nonperforming modified TDRs, Number of loans | 4 | ||
Performing and nonperforming modified TDRs, Pre-modification recorded investment | 575 | ||
Performing and nonperforming modified TDRs, Post-modification recorded investment | 575 | ||
Land development [Member] | Commercial Loan Portfolio [Member] | |||
Schedule providing information on performing and nonperforming TDRs | |||
Performing and nonperforming modified TDRs, Number of loans | 1 | 4 | 11 |
Performing and nonperforming modified TDRs, Pre-modification recorded investment | 72 | 1,958 | 5,494 |
Performing and nonperforming modified TDRs, Post-modification recorded investment | 72 | 1,958 | 5,494 |
Commercial loan portfolio [Member] | Commercial Loan Portfolio [Member] | |||
Schedule providing information on performing and nonperforming TDRs | |||
Performing and nonperforming modified TDRs, Number of loans | 100 | 114 | 179 |
Performing and nonperforming modified TDRs, Pre-modification recorded investment | 25,928 | 30,878 | 36,542 |
Performing and nonperforming modified TDRs, Post-modification recorded investment | 25,928 | 30,878 | 36,542 |
Consumer loan portfolio (real estate residential) [Member] | Consumer Portfolio Segment [Member] | |||
Schedule providing information on performing and nonperforming TDRs | |||
Performing and nonperforming modified TDRs, Number of loans | 119 | 85 | 121 |
Performing and nonperforming modified TDRs, Pre-modification recorded investment | 4,184 | 4,943 | 9,944 |
Performing and nonperforming modified TDRs, Post-modification recorded investment | $4,158 | $4,840 | $9,684 |
Loans_Summary_of_TDRs_with_a_P
Loans (Summary of TDRs with a Payment Default During the Period) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans | Loans | Loans | |
Troubled debt restructurings on financing receivables with defaults payment | |||
Financing receivable modifications subsequent default number of loans | 25 | 58 | 42 |
Financing receivable modification subsequent default recorded investment | $3,496 | $10,746 | $9,515 |
Commercial [Member] | Commercial Loan Portfolio [Member] | |||
Troubled debt restructurings on financing receivables with defaults payment | |||
Financing receivable modifications subsequent default number of loans | 7 | 23 | 10 |
Financing receivable modification subsequent default recorded investment | 885 | 2,745 | 1,692 |
Real estate commercial [Member] | Commercial Loan Portfolio [Member] | |||
Troubled debt restructurings on financing receivables with defaults payment | |||
Financing receivable modifications subsequent default number of loans | 6 | 8 | 15 |
Financing receivable modification subsequent default recorded investment | 2,352 | 4,278 | 4,993 |
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 loans | 0 | 3 | 0 |
Financing receivable modification subsequent default recorded investment | 0 | 371 | 0 |
Land Development Loans [Member] | Commercial Loan Portfolio [Member] | |||
Troubled debt restructurings on financing receivables with defaults payment | |||
Financing receivable modifications subsequent default number of loans | 0 | 2 | 4 |
Financing receivable modification subsequent default recorded investment | 0 | 1,526 | 1,157 |
Commercial loan portfolio [Member] | Commercial Loan Portfolio [Member] | |||
Troubled debt restructurings on financing receivables with defaults payment | |||
Financing receivable modifications subsequent default number of loans | 13 | 36 | 29 |
Financing receivable modification subsequent default recorded investment | 3,237 | 8,920 | 7,842 |
Consumer loan portfolio (real estate residential) [Member] | Consumer Portfolio Segment [Member] | |||
Troubled debt restructurings on financing receivables with defaults payment | |||
Financing receivable modifications subsequent default number of loans | 12 | 22 | 13 |
Financing receivable modification subsequent default recorded investment | $259 | $1,826 | $1,673 |
Loans_Schedule_of_the_Allowanc
Loans (Schedule of the Allowance for Loan Losses) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||
Beginning balance | $79,072 | $84,491 |
Provision for loan losses | 6,100 | 11,000 |
Charge-offs | -14,229 | -21,146 |
Recoveries | 4,740 | 4,727 |
Ending balance | 75,683 | 79,072 |
Allowance for loan losses | ||
Loans individually evaluated for impairment related to allowance for loan losses | 1,338 | 1,591 |
Loans collectively evaluated for impairment related to allowance for loan losses | 73,845 | 76,981 |
Allowance for loan losses related to loans acquired with deteriorated credit quality | 500 | 500 |
Total | 75,683 | 79,072 |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 105,902 | 107,313 |
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 4,884,165 | 4,245,611 |
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 698,163 | 294,697 |
Total loans | 5,688,230 | 4,647,621 |
Commercial Loan Portfolio [Member] | ||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||
Beginning balance | 44,482 | 49,975 |
Provision for loan losses | 3,464 | 3,895 |
Charge-offs | -6,399 | -12,280 |
Recoveries | 2,609 | 2,892 |
Ending balance | 44,156 | 44,482 |
Allowance for loan losses | ||
Loans individually evaluated for impairment related to allowance for loan losses | 1,003 | 1,081 |
Loans collectively evaluated for impairment related to allowance for loan losses | 43,153 | 43,401 |
Allowance for loan losses related to loans acquired with deteriorated credit quality | 0 | 0 |
Total | 44,156 | 44,482 |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 86,221 | 89,905 |
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 2,517,371 | 2,178,714 |
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 480,432 | 250,207 |
Total loans | 3,084,024 | 2,518,826 |
Consumer Loan Portfolio [Member] | ||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||
Beginning balance | 30,145 | 29,333 |
Provision for loan losses | 4,357 | 7,843 |
Charge-offs | -7,830 | -8,866 |
Recoveries | 2,131 | 1,835 |
Ending balance | 28,803 | 30,145 |
Allowance for loan losses | ||
Loans individually evaluated for impairment related to allowance for loan losses | 335 | 510 |
Loans collectively evaluated for impairment related to allowance for loan losses | 27,968 | 29,135 |
Allowance for loan losses related to loans acquired with deteriorated credit quality | 500 | 500 |
Total | 28,803 | 30,145 |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 19,681 | 17,408 |
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 2,366,794 | 2,066,897 |
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 217,731 | 44,490 |
Total loans | 2,604,206 | 2,128,795 |
Unallocated [Member] | ||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | ||
Beginning balance | 4,445 | 5,183 |
Provision for loan losses | -1,721 | -738 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | 2,724 | 4,445 |
Allowance for loan losses | ||
Loans individually evaluated for impairment related to allowance for loan losses | 0 | 0 |
Loans collectively evaluated for impairment related to allowance for loan losses | 2,724 | 4,445 |
Allowance for loan losses related to loans acquired with deteriorated credit quality | 0 | 0 |
Total | 2,724 | 4,445 |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 0 | 0 |
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 0 | 0 |
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 0 | 0 |
Total loans | $0 | $0 |
Loans_Textual_Details
Loans (Textual) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loans | |||
Segment | |||
BaordOfDirectors | |||
Tenants | |||
employee | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual TDRs Reported in Nonaccrual Loans | $37,200,000 | $37,300,000 | |
Number of portfolio segment | 2 | ||
Number of classes of loans | 7 | ||
Minimum number of tenants leased to for non-owner occupied real estate | 1 | ||
Loans held-for-sale, at fair value | 9,128,000 | 5,219,000 | |
Number of bank executives and senior officers with credit decision limits similar to group loan authorities | 4 | ||
Number of members of the board of directors in loan committee | 8 | ||
Minimum due period of loans consider in a nonperforming status | 90 days | ||
Interest income recognized on nonaccrual loans while in accruing status | 500,000 | 900,000 | 1,100,000 |
Interest lost on nonaccrual loans | 3,300,000 | 3,500,000 | 4,500,000 |
Interest income recognized on TDRs | 3,600,000 | 3,200,000 | 2,900,000 |
Difference between recorded investment and unpaid principal balance of loan | 30,600,000 | 24,000,000 | |
Confirmed losses (partial charge-offs) | 15,400,000 | 20,200,000 | |
Fair value of discount adjustment | 15,200,000 | 3,800,000 | |
Financing receivable allowance for acquired loans | 500,000 | 500,000 | |
Allowance for loan losses related to loans acquired with deteriorated credit quality | 500,000 | 500,000 | |
Reclassification from nonaccretable difference | 10,000,000 | 125,000 | |
Management [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans to directors, executive officers and affiliates | 31,200,000 | 26,800,000 | |
Loans to directors, executive officers and affiliates, current year additions | 39,300,000 | 54,200,000 | |
Loans to directors, executive officers and affiliates, current year reductions | 34,900,000 | 43,400,000 | |
Commercial Loan Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum value of loan requires executive and senior officer approval | 1,500,000 | ||
Minimum due period of loans consider in a nonperforming status | 90 days | ||
Allowance for loan losses related to loans acquired with deteriorated credit quality | 0 | 0 | |
Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Original contractual terms | 90 days | ||
Minimum due period of loans consider in a nonperforming status | 90 days | ||
Allowance for loan losses related to loans acquired with deteriorated credit quality | 500,000 | 500,000 | |
Acquired Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Loans | 19,900,000 | 9,800,000 | |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
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] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period for loan secured under real estate residential security | 15 years | ||
Loan-to-value ratio at the time of origination | 80.00% | ||
Loans held-for-sale, recorded investment sold | 149,000,000 | 211,000,000 | |
Land Development Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum period for payment of loan | 12 months | ||
Maximum [Member] | Commercial Loan Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
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] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Upper limit of number of family residential properties | 4 | ||
Minimum [Member] | Commercial Loan Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum value of loan requires group loan authority approval | 1,000,000 | ||
Minimum value of loans requiring board of directors approval | 10,000,000 | ||
Minimum [Member] | Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Minimum value of loan requiring director loan committee approval | 5,000,000 | ||
Minimum [Member] | Real Estate Residential Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Lower limit of number of family residential properties | 1 | ||
Fixed-Rate Real Estate Residential Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held-for-sale, at fair value | 9,100,000 | 5,200,000 | |
Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Loans | 45,700,000 | 39,600,000 | |
Total Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 127,876,000 | 121,021,000 | 133,000,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 4,353,000 | 3,764,000 | 3,700,000 |
Impaired Loans | 134,667,000 | 129,345,000 | |
Total Impaired Loans [Member] | Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 41,137,000 | 29,629,000 | 27,700,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 1,375,000 | 990,000 | 1,000,000 |
Impaired Loans | 39,060,000 | 41,355,000 | |
Total Impaired Loans [Member] | Real Estate Residential Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 26,745,000 | 26,836,000 | 33,400,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 1,267,000 | 1,123,000 | 1,400,000 |
Impaired Loans | 27,675,000 | 26,329,000 | |
Total Impaired Loans [Member] | Land Development Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 3,551,000 | 9,794,000 | 9,100,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 131,000 | 303,000 | 400,000 |
Impaired Loans | 1,928,000 | 7,170,000 | |
Total Impaired Loans [Member] | Real Estate Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 53,375,000 | 50,825,000 | 58,100,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 1,567,000 | 1,348,000 | 1,000,000 |
Impaired Loans | 63,203,000 | 50,796,000 | |
Total Impaired Loans [Member] | Real Estate Construction Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 164,000 | 370,000 | 700,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | |
Impaired Loans | 162,000 | 371,000 | |
Total Impaired Loans [Member] | Consumer Installment Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 602,000 | 653,000 | 1,100,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 1,000 | 0 | |
Impaired Loans | 518,000 | 676,000 | |
Total Impaired Loans [Member] | Home Equity Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, Average Recorded Investment | 2,302,000 | 2,914,000 | 2,900,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 12,000 | 0 | |
Impaired Loans | $2,121,000 | $2,648,000 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment, Gross | $206,322 | $175,569 |
Accumulated depreciation | -108,826 | -100,261 |
Total Premises and Equipment, Net | 97,496 | 75,308 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment, Gross | 27,402 | 21,749 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment, Gross | 110,380 | 91,920 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Premises and Equipment, Gross | $68,540 | $61,900 |
Goodwill_Details
Goodwill (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Dec. 07, 2012 |
Branches | ||||
Goodwill [Line Items] | ||||
Goodwill | $180,128,000 | $120,164,000 | ||
Northwestern Bancorp [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 59,964,000 | |||
Independent Bank [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 6,800,000 | |||
Number of branches acquired (branches) | 21 | |||
Goodwill expected to be tax deductible | $5,900,000 |
Other_Intangible_Assets_Net_Ca
Other Intangible Assets (Net Carrying Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Other intangible assets: | ||||
Total other intangible assets | $33,080 | $13,424 | ||
Core deposit intangible assets [Member] | ||||
Other intangible assets: | ||||
Total other intangible assets | 20,863 | 10,001 | ||
Mortgage servicing rights [Member] | ||||
Other intangible assets: | ||||
Total other intangible assets | $12,217 | $3,423 | $3,478 | $3,593 |
Other_Intangible_Assets_Amorti
Other Intangible Assets (Amortization Expense of Core Deposit Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | |||
Carrying amount | $33,080 | $13,424 | |
Amortization and impairment of intangible assets | 3,545 | 3,492 | 3,969 |
Core deposit intangible assets [Member] | |||
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | |||
Gross original amount | 31,550 | 18,659 | |
Accumulated amortization | 10,687 | 8,658 | |
Carrying amount | 20,863 | 10,001 | |
Amortization and impairment of intangible assets | $2,029 | $1,909 |
Other_Intangible_Assets_Carryi
Other Intangible Assets (Carrying and Fair Value of MSRs) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Net carrying value, fair value of MSRs and loans Corporation servicing for others | ||||
Total other intangible assets | $33,080 | $13,424 | ||
Loans serviced for others that have servicing rights capitalized | 2,093,140 | 886,730 | ||
Mortgage servicing rights [Member] | ||||
Net carrying value, fair value of MSRs and loans Corporation servicing for others | ||||
Total other intangible assets | 12,217 | 3,423 | 3,478 | 3,593 |
Fair value of MSRs | 14,979 | 6,878 | ||
Originated Portfolio [Member] | ||||
Net carrying value, fair value of MSRs and loans Corporation servicing for others | ||||
Loans serviced for others that have servicing rights capitalized | $881,000 |
Other_Intangible_Assets_Activi
Other Intangible Assets (Activity for Capitalized MSRs) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other Intangible Assets [Roll Forward] | ||||||
Total other intangible assets, Balance at beginning of year | $13,424 | |||||
Amortization | -3,545 | -3,492 | -3,969 | |||
Change in valuation allowance attributable to mortage servicing assets | 0 | 0 | ||||
Total other intangible assets, Balance at end of year | 33,080 | 13,424 | ||||
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance | 200 | [1] | 0 | [1] | 0 | [1] |
Mortgage servicing rights [Member] | ||||||
Other Intangible Assets [Roll Forward] | ||||||
Total other intangible assets, Balance at beginning of year | 3,423 | 3,478 | 3,593 | |||
Additions | 1,075 | 1,528 | 2,285 | |||
Amortization | -1,316 | -1,583 | -2,400 | |||
Change in valuation allowance attributable to mortage servicing assets | -200 | |||||
Total other intangible assets, Balance at end of year | 12,217 | 3,423 | 3,478 | |||
Mortgage servicing rights [Member] | Northwestern Bancorp [Member] | ||||||
Other Intangible Assets [Roll Forward] | ||||||
Additions | 9,235 | |||||
Mortgage servicing rights [Member] | OAK [Member] | ||||||
Other Intangible Assets [Roll Forward] | ||||||
Additions | $0 | $0 | ||||
[1] | MSRs are stratified into servicing assets originated by the Corporation and those acquired in acquisitions of other institutions and further stratified into relatively homogeneous pools based on products with similar characteristics. The MSR impairment valuation allowance recorded at DecemberB 31, 2014 related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. |
Other_Intangible_Assets_Textua
Other Intangible Assets (Textual) (Details) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | Dec. 07, 2012 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Loans serviced for others that have servicing rights capitalized | 2,093,140,000 | 886,730,000 | ||||||
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||
Impairment valuation allowance | 200,000 | [1] | 0 | [1] | 0 | [1] | ||
Core deposit intangible assets [Member] | ||||||||
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||
2015 | 3,200,000 | |||||||
2016 | 2,900,000 | |||||||
2017 | 2,600,000 | |||||||
2018 | 2,500,000 | |||||||
2019 | 2,400,000 | |||||||
Thereafter | 7,300,000 | |||||||
Northwestern Bancorp [Member] | ||||||||
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||
Intangibles acquired | 12,891,000 | |||||||
Independent Bank [Member] | ||||||||
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||
Intangibles acquired | 5,600,000 | |||||||
Independent Bank [Member] | Core deposit intangible assets [Member] | ||||||||
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||
Intangibles acquired | 5,600,000 | |||||||
Originated Portfolio Segment [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Loans serviced for others that have servicing rights capitalized | 881,000,000 | |||||||
Originated Portfolio Segment [Member] | Weighted Average [Member] | Mortgage servicing rights [Member] | ||||||||
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||
Coupon rate (percent) | 4.28% | 4.33% | ||||||
Discount rate (percent) | 8.50% | 8.50% | ||||||
Prepayment speed rate (percent) | 13.60% | 11.30% | ||||||
Acquired Portfolio Segment [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Loans serviced for others that have servicing rights capitalized | 1,210,000,000 | |||||||
Acquired Portfolio Segment [Member] | Weighted Average [Member] | Mortgage servicing rights [Member] | ||||||||
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||
Coupon rate (percent) | 4.08% | |||||||
Discount rate (percent) | 10.10% | |||||||
Prepayment speed rate (percent) | 11.65% | |||||||
[1] | MSRs are stratified into servicing assets originated by the Corporation and those acquired in acquisitions of other institutions and further stratified into relatively homogeneous pools based on products with similar characteristics. The MSR impairment valuation allowance recorded at DecemberB 31, 2014 related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits, by Type [Abstract] | ||
Noninterest-bearing demand | $1,591,661,000 | $1,227,768,000 |
Interest-bearing demand | 1,428,941,000 | 1,169,076,000 |
Savings | 1,720,422,000 | 1,393,610,000 |
Time deposits over $100,000 | 557,476,000 | 529,265,000 |
Other time deposits | 780,471,000 | 802,666,000 |
Total deposits | 6,078,971,000 | 5,122,385,000 |
Maturities of Time Deposits [Abstract] | ||
Time deposit maturities, one year or less | 921,000,000 | |
Time deposits maturities, after next twelve months | 417,000,000 | |
Time deposit maturities, 2015 | 174,000,000 | |
Time deposit maturities, 2016 | 115,000,000 | |
Time deposit maturities, 2017 | 59,000,000 | |
Time deposit maturities, 2018 | 68,000,000 | |
Demand deposit overdrafts | $4,300,000 | $3,300,000 |
ShortTerm_Borrowings_Details
Short-Term Borrowings (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Securities Sold under Agreements to Repurchase [Member] | |||
Short-term borrowings [Line Items] | |||
Ending balance | $304,467 | $327,428 | $310,463 |
Weighted average interest rate | 0.11% | 0.15% | 0.14% |
Average amount outstanding during year | 326,056 | 337,649 | 312,729 |
Weighted average interest rate during year | 0.12% | 0.14% | 0.14% |
Maximum balance outstanding at any month-end | 361,231 | 357,976 | 335,193 |
Federal Home Loan Bank Advances [Member] | |||
Short-term borrowings [Line Items] | |||
Ending balance | 60,000 | ||
Weighted average interest rate | 0.25% | ||
Average amount outstanding during year | 6,726 | ||
Weighted average interest rate during year | 0.27% | ||
Maximum balance outstanding at any month-end | 60,000 | ||
Federal Funds Purchased [Member] | |||
Short-term borrowings [Line Items] | |||
Ending balance | 25,000 | ||
Weighted average interest rate | 0.40% | ||
Average amount outstanding during year | 2,003 | ||
Weighted average interest rate during year | 0.40% | ||
Maximum balance outstanding at any month-end | $25,000 |
Federal_Home_Loan_Bank_Advance2
Federal Home Loan Bank Advances (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Federal Home Loan Bank Advances [Line Items] | |||
FHLB advances additional borrowing capacity | $360,000,000 | ||
FHLB advance prepayment fee | 0 | 800,000 | 0 |
Real Estate Residential Loans [Member] | |||
Schedule of Federal Home Loan Bank Advances [Line Items] | |||
Carrying value of FHLB collateral | $1,040,000,000 |
Equity_Details
Equity (Details) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2008 | Apr. 20, 2009 | |
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 200,000 | 200,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares authorized to be repurchased | 500,000 | |||
Stock repurchased during the period, shares | 0 | |||
Number of remaining shares authorized to be repurchased | 500,000 | |||
Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 200,000 |
Equity_Textuals_Details
Equity Textuals (Details) (USD $) | Dec. 31, 2014 | Jun. 24, 2014 | Dec. 31, 2013 | Sep. 18, 2013 | 23-May-13 |
In Millions, except Share data, unless otherwise specified | |||||
Statement of Stockholders' Equity [Abstract] | |||||
Common Stock, Shares, Issued | 32,774,420 | 2,500,000 | 29,789,825 | 2,213,750 | |
CommonStockIssuedOverAllotment | 375,000 | 288,750 | |||
Shares Issued, Price Per Share | $28 | $26 | |||
CommonStock, Value, Issued From Public Offering | $76.20 | $53.90 | |||
Stock Registered Under Universal Shelf Registration | 100 | ||||
Amount of Common Stock sold in public stock offering | $80.50 | $57.60 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Components of accumulated other comprehensive loss, net of related tax benefit/expense | |||
Net unrealized gains (losses) on investment securities b available-for-sale, net of related tax expense (benefit) of $(113) at December 31, 2014, ($1,335) at December 31, 2013 and $2,301 at December 31, 2012 | ($210) | ($2,480) | $4,274 |
Pension and other postretirement benefits adjustment, net of related tax benefit of $17,362 at December 31, 2014, $9,714 at December 31, 2013 and $19,058 at December 31, 2012 | -32,243 | -18,040 | -35,393 |
Accumulated other comprehensive loss | ($32,453) | ($20,520) | ($31,119) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Loss (Textual) [Abstract] | |||
Net unrealized gains (losses) on investment securities-available-for-sale, tax expense (benefit) | ($113) | ($1,335) | $2,301 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax Benefit | $17,362 | $9,714 | $19,058 |
Fair_Value_Measurements_Recurr
Fair Value Measurements (Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | $748,864 | $684,570 |
US Treasury Securities [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 8,259 | |
Government sponsored agencies [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 263,503 | 93,763 |
State and political subdivisions [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 46,227 | 43,798 |
Residential mortgage-backed securities [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 239,807 | 299,366 |
Collateralized mortgage obligations [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 144,383 | 180,941 |
Corporate bonds [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 45,095 | 65,275 |
Preferred stock [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 1,590 | 1,427 |
Fair Value Measurements Recurring [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 748,864 | 684,570 |
Loans held-for-sale | 9,128 | 5,219 |
Total assets measured at fair value on a recurring basis | 757,992 | 689,789 |
Fair Value Measurements Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 8,259 | 0 |
Loans held-for-sale | 0 | 0 |
Total assets measured at fair value on a recurring basis | 8,259 | 0 |
Fair Value Measurements Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 740,605 | 684,570 |
Loans held-for-sale | 9,128 | 5,219 |
Total assets measured at fair value on a recurring basis | 749,733 | 689,789 |
Fair Value Measurements Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Fair Value Measurements Recurring [Member] | US Treasury Securities [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 8,259 | |
Fair Value Measurements Recurring [Member] | US Treasury Securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 8,259 | |
Fair Value Measurements Recurring [Member] | US Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | |
Fair Value Measurements Recurring [Member] | US Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | |
Fair Value Measurements Recurring [Member] | Government sponsored agencies [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 263,503 | 93,763 |
Fair Value Measurements Recurring [Member] | Government sponsored agencies [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Government sponsored agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 263,503 | 93,763 |
Fair Value Measurements Recurring [Member] | Government sponsored agencies [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | State and political subdivisions [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 46,227 | 43,798 |
Fair Value Measurements Recurring [Member] | State and political subdivisions [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | State and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 46,227 | 43,798 |
Fair Value Measurements Recurring [Member] | State and political subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Residential mortgage-backed securities [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 239,807 | 299,366 |
Fair Value Measurements Recurring [Member] | Residential mortgage-backed securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Residential mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 239,807 | 299,366 |
Fair Value Measurements Recurring [Member] | Residential mortgage-backed securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Collateralized mortgage obligations [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 144,383 | 180,941 |
Fair Value Measurements Recurring [Member] | Collateralized mortgage obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Collateralized mortgage obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 144,383 | 180,941 |
Fair Value Measurements Recurring [Member] | Collateralized mortgage obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Corporate bonds [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 45,095 | 65,275 |
Fair Value Measurements Recurring [Member] | Corporate bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 45,095 | 65,275 |
Fair Value Measurements Recurring [Member] | Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Preferred stock [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 1,590 | 1,427 |
Fair Value Measurements Recurring [Member] | Preferred stock [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 0 | 0 |
Fair Value Measurements Recurring [Member] | Preferred stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | 1,590 | 1,427 |
Fair Value Measurements Recurring [Member] | Preferred stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of assets measured at fair value on a recurring basis | ||
Available-for-sale, at fair value | $0 | $0 |
Fair_Value_Measurements_Nonrec
Fair Value Measurements (Nonrecurring Basis) (Details) (Fair Value Measurements Nonrecurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 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 | $44,219 | $38,628 |
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 |
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 |
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 | 44,219 | 38,628 |
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 | 21,323 | 28,852 |
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 |
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 |
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 | 21,323 | 28,852 |
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 | 14,205 | 9,776 |
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 |
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 |
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 | 14,205 | 9,776 |
Mortgage Servicing Rights [Member] | ||
Summary of assets measured at fair value on a nonrecurring basis | ||
Total assets measured at fair value on a nonrecurring basis | 8,691 | |
Mortgage Servicing Rights [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 | |
Mortgage Servicing Rights [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 | |
Mortgage Servicing Rights [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 | $8,691 |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment securities: | ||
Available-for-sale | $748,864 | $684,570 |
Held-to-maturity Securities, Fair Value | 315,740 | 268,271 |
Carrying Amount [Member] | ||
Investment securities: | ||
Nonmarketable equity securities | 27,369 | 25,572 |
Carrying Amount [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 183,020 | 310,788 |
Carrying Amount [Member] | Level 2 [Member] | ||
Investment securities: | ||
Available-for-sale | 748,864 | 684,570 |
Held-to-maturity Securities, Fair Value | 305,913 | 263,405 |
Loans held-for-sale | 9,128 | 5,219 |
Interest receivable | 17,492 | 15,748 |
Liabilities: | ||
Deposits without defined maturities | 4,741,024 | 3,790,454 |
Interest Payable | 755 | 868 |
Short-term borrowings | 389,467 | 327,428 |
Carrying Amount [Member] | Level 3 [Member] | ||
Investment securities: | ||
Held-to-maturity Securities, Fair Value | 10,500 | 10,500 |
Net loans | 5,612,547 | 4,568,549 |
Liabilities: | ||
Time deposits | 1,337,947 | 1,331,931 |
Fair Value [Member] | ||
Investment securities: | ||
Nonmarketable equity securities | 27,369 | 25,572 |
Fair Value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 183,020 | 310,788 |
Fair Value [Member] | Level 2 [Member] | ||
Investment securities: | ||
Available-for-sale | 748,864 | 684,570 |
Held-to-maturity Securities, Fair Value | 308,650 | 262,021 |
Loans held-for-sale | 9,128 | 5,219 |
Interest receivable | 17,492 | 15,748 |
Liabilities: | ||
Deposits without defined maturities | 4,741,024 | 3,790,454 |
Interest Payable | 755 | 868 |
Short-term borrowings | 389,467 | 327,428 |
Fair Value [Member] | Level 3 [Member] | ||
Investment securities: | ||
Held-to-maturity Securities, Fair Value | 7,090 | 6,250 |
Net loans | 5,623,454 | 4,575,532 |
Liabilities: | ||
Time deposits | $1,340,015 | $1,340,746 |
Fair_Value_Measurements_Textua
Fair Value Measurements (Textual) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Measurements (Textual) [Abstract] | ||
Fair Value of Trust Preferred Investment Securities | $6,300,000 | |
Impairment of goodwill | 0 | 0 |
Impairment identified for intangible assets | 0 | 0 |
Valuation Allowance on Mortgage Servicing Rights | 200,000 | 0 |
Fair Value Measurements Recurring [Member] | ||
Fair Value Measurements (Textual) [Abstract] | ||
Liabilities recorded at fair value | 0 | 0 |
Fair Value Measurements Nonrecurring [Member] | ||
Fair Value Measurements (Textual) [Abstract] | ||
Liabilities recorded at fair value | $0 | $0 |
Minimum [Member] | ||
Fair Value Measurements (Textual) [Abstract] | ||
Discount factors used to determine fair value | 70.00% | |
Minimum [Member] | Other Real Estate and Repossessed Assets [Member] | ||
Fair Value Measurements (Textual) [Abstract] | ||
Discount factors used to determine fair value | 70.00% | |
Maximum [Member] | ||
Fair Value Measurements (Textual) [Abstract] | ||
Discount factors used to determine fair value | 80.00% | |
Maximum [Member] | Other Real Estate and Repossessed Assets [Member] | ||
Fair Value Measurements (Textual) [Abstract] | ||
Discount factors used to determine fair value | 75.00% |
Noninterest_Income_Details
Noninterest Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Noninterest Income [Abstract] | |||||||||||
Service charges and fees on deposit accounts | $22,414 | $21,939 | $19,581 | ||||||||
Wealth management revenue | 16,015 | 13,989 | 11,763 | ||||||||
Electronic banking fees | 13,480 | 12,213 | 9,793 | ||||||||
Mortgage banking revenue | 5,041 | 5,336 | 6,597 | ||||||||
Other fees for customer services | 3,539 | 3,288 | 2,598 | ||||||||
Insurance commissions | 1,559 | 1,650 | 1,836 | ||||||||
Gain on sale of investment securities | 0 | 1,133 | 34 | ||||||||
Gain on sale of merchant card services | 400 | 0 | 1,280 | ||||||||
Other | 647 | 861 | 1,202 | ||||||||
Total Noninterest Income | $18,227 | $15,351 | $15,801 | $13,716 | $13,578 | $14,644 | $15,948 | $16,239 | $63,095 | $60,409 | $54,684 |
Operating_Expenses_Details
Operating Expenses (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Expenses [Abstract] | |||||||||||
Salaries and wages | $84,807 | $78,014 | $68,668 | ||||||||
Employee benefits | 19,411 | 18,405 | 15,715 | ||||||||
Occupancy | 15,842 | 13,934 | 12,413 | ||||||||
Equipment and software | 15,297 | 13,734 | 13,112 | ||||||||
Outside processing/service fees | 12,372 | 11,134 | 10,679 | ||||||||
FDIC insurance premiums | 4,307 | 4,362 | 4,320 | ||||||||
Professional fees | 6,125 | 3,771 | 4,347 | ||||||||
Postage and express mail | 3,557 | 3,051 | 3,149 | ||||||||
Advertising and marketing | 3,449 | 2,971 | 3,106 | ||||||||
Donations | 1,155 | 2,829 | 1,892 | ||||||||
Training, travel and other employee expenses | 2,748 | 2,512 | 2,530 | ||||||||
Telephone | 1,966 | 1,940 | 1,693 | ||||||||
Intangible asset amortization | 2,029 | 1,909 | 1,569 | ||||||||
Supplies | 1,897 | 1,670 | 1,567 | ||||||||
Credit-related expenses | 996 | 707 | 3,816 | ||||||||
Other | 3,967 | 4,005 | 3,345 | ||||||||
Total Operating Expenses | $52,616 | $42,702 | $42,425 | $42,182 | $42,405 | $39,545 | $41,041 | $41,957 | $179,925 | $164,948 | $151,921 |
Retirement_Plans_Changes_in_th
Retirement Plans (Changes in the Projected Benefit Obligation and Plan Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $105,914 | $115,177 | |
Service cost | 944 | 1,247 | 1,168 |
Interest cost | 5,167 | 4,603 | 4,795 |
Defined Benefit Plan, Plan Amendments | 0 | 0 | |
Net actuarial (gain) loss | 21,314 | -10,926 | |
Benefits paid | -4,179 | -4,187 | |
Benefit obligation at end of year | 129,160 | 105,914 | 115,177 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 128,829 | 98,187 | |
Actual return on plan assets | 6,125 | 19,829 | |
Employer contributions | 0 | 15,000 | 12,000 |
Benefits paid | -4,179 | -4,187 | |
Fair value of plan assets at end of year | 130,775 | 128,829 | 98,187 |
Funded (unfunded) projected benefit obligation at end of year | 1,615 | 22,915 | |
Accumulated benefit obligation | 121,826 | 99,551 | |
Postretirement Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 3,477 | 3,243 | |
Service cost | 18 | 18 | 0 |
Interest cost | 142 | 143 | 146 |
Defined Benefit Plan, Plan Amendments | 0 | 720 | |
Net actuarial (gain) loss | 312 | -428 | |
Benefits paid | -247 | -219 | |
Benefit obligation at end of year | 3,702 | 3,477 | 3,243 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 247 | 219 | |
Benefits paid | -247 | -219 | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded (unfunded) projected benefit obligation at end of year | -3,702 | -3,477 | |
Accumulated benefit obligation | $3,702 | $3,477 |
Retirement_Plans_Weightedavera
Retirement Plans (Weighted-average rate assumptions of the Pension and Postretirement Plans) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used in determining benefit obligation | 4.15% | 5.00% | 4.08% |
Discount rate used in determining expense | 5.00% | 4.08% | 4.90% |
Expected long-term return on Pension Plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase used in determining benefit obligation | 3.50% | 3.50% | 3.50% |
Rate of compensation increase used in determining pension expense | 3.50% | 3.50% | 3.50% |
Year 1 increase in cost of postretirement benefits | 0.00% | 0.00% | 0.00% |
Supplemental Employee Retirement Plan, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used in determining benefit obligation | 4.07% | 4.87% | 4.08% |
Postretirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used in determining benefit obligation | 3.75% | 4.27% | 4.08% |
Discount rate used in determining expense | 4.27% | 4.08% | 4.90% |
Expected long-term return on Pension Plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase used in determining benefit obligation | 0.00% | 0.00% | 0.00% |
Rate of compensation increase used in determining pension expense | 0.00% | 0.00% | 0.00% |
Year 1 increase in cost of postretirement benefits | 8.00% | 8.50% | 8.00% |
Retirement_Plans_Net_Periodic_
Retirement Plans (Net Periodic Pension Cost (Income)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension 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 | $944 | $1,247 | $1,168 |
Interest cost | 5,167 | 4,603 | 4,795 |
Expected return on plan assets | -8,314 | -7,794 | -6,925 |
Amortization of prior service credit | -1 | -1 | -1 |
Amortization of net actuarial loss (gain) | 2,159 | 3,670 | 2,382 |
Net cost (income) | -45 | 1,725 | 1,419 |
Postretirement 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 | 18 | 18 | 0 |
Interest cost | 142 | 143 | 146 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | 130 | 343 | -300 |
Amortization of net actuarial loss (gain) | -104 | -73 | -28 |
Net cost (income) | $186 | $431 | ($182) |
Retirement_Plans_Schedule_of_E
Retirement Plans (Schedule of Estimated Future Benefit Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
Estimated future benefit payments - 2015 | $5,693 |
Estimated future benefit payments - 2016 | 6,402 |
Estimated future benefit payments - 2017 | 6,297 |
Estimated future benefit payments - 2018 | 6,241 |
Estimated future benefit payments - 2019 | 6,820 |
Estimated future benefit payments - 2020-2024 | 36,448 |
Estimated future benefit payments - Total | 67,901 |
Postretirement Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
Estimated future benefit payments - 2015 | 300 |
Estimated future benefit payments - 2016 | 310 |
Estimated future benefit payments - 2017 | 310 |
Estimated future benefit payments - 2018 | 310 |
Estimated future benefit payments - 2019 | 320 |
Estimated future benefit payments - 2020-2024 | 1,510 |
Estimated future benefit payments - Total | $3,060 |
Retirement_Plans_Impact_of_One
Retirement Plans (Impact of One Percentage Point Change in Assumed Health Care and Dental Cost Trend Rates) (Details) (Postretirement Plan [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Postretirement Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Effect of one percentage point increase on service and interest cost components | $13 |
Effect of one percentage point decrease on service and interest cost components | -12 |
Effect of one percentage point increase on postretirement benefit obligation | 327 |
Effect of one percentage point decrease on postretirement benefit obligation | ($289) |
Retirement_Plans_Pension_Plan_
Retirement Plans (Pension Plan asset Allocations) (Details) (Pension Plan [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan actual asset allocations | 100.00% | 100.00% |
Equity securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan actual asset allocations | 68.00% | 70.00% |
Debt securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan actual asset allocations | 30.00% | 29.00% |
Other securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan actual asset allocations | 2.00% | 1.00% |
Retirement_Plans_Fair_Value_of
Retirement Plans (Fair Value of Plan Assets by Fair Value Level) (Details) (Pension Plan [Member], USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost | ($45) | $1,725 | $1,419 | ||
Fair value of plan assets | 130,775 | 128,829 | 98,187 | ||
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 121,918 | 117,562 | |||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 8,857 | 11,267 | |||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 130,775 | 128,829 | |||
Cash [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2,594 | 902 | |||
Cash [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Cash [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Cash [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2,594 | 902 | |||
U.S. large- and mid-cap stocks [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 56,718 | [1] | 56,015 | [1] | |
U.S. large- and mid-cap stocks [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | [1] | 0 | [1] | |
U.S. large- and mid-cap stocks [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | [1] | 0 | [1] | |
U.S. large- and mid-cap stocks [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 56,718 | [1] | 56,015 | ||
U.S. small-cap mutual funds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 5,409 | 5,608 | |||
U.S. small-cap mutual funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. small-cap mutual funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. small-cap mutual funds [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 5,409 | 5,608 | |||
International large-cap mutual funds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 14,805 | 15,504 | |||
International large-cap mutual funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
International large-cap mutual funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
International large-cap mutual funds [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 14,805 | 15,504 | |||
Emerging markets mutual funds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 6,004 | 6,360 | |||
Emerging markets mutual funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Emerging markets mutual funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Emerging markets mutual funds [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 6,004 | 6,360 | |||
Common Stock [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 6,455 | 6,672 | |||
Common Stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Common Stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Common Stock [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 6,455 | 6,672 | |||
U.S. Treasury and government sponsored agency bonds and notes [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 998 | 4,600 | |||
U.S. Treasury and government sponsored agency bonds and notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2,043 | 2,574 | |||
U.S. Treasury and government sponsored agency bonds and notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
U.S. Treasury and government sponsored agency bonds and notes [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 3,041 | 7,174 | |||
Corporate bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | [2] | 0 | [2] | |
Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 6,814 | [2] | 8,693 | [2] | |
Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Corporate bonds [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 6,814 | [2] | 8,693 | ||
Mutual funds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 28,795 | [3] | 21,901 | [3] | |
Mutual funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | [3] | 0 | [3] | |
Mutual funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | [3] | 0 | [3] | |
Mutual funds [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 28,795 | [3] | 21,901 | [3] | |
Other debt securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 140 | 0 | |||
Other debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Other debt securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Other debt securities [Member] | Fair Value [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $140 | $0 | |||
[1] | Comprised of common stocks and mutual funds traded on U.S. Exchanges whose issuers had market capitalizations exceeding $3 billion | ||||
[2] | Comprised of investment grade bonds of U.S. issuers from diverse industries. | ||||
[3] | Comprised primarily of fixed-income bonds issued by the U.S. Treasury and government sponsored agencies and bonds of U.S. and foreign issuers from diverse industries. |
Retirement_Plans_Changes_in_Ac
Retirement Plans (Changes in Accumulated Other Comprehensive Income (Loss) Related to Retirement Plans) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) at beginning of year | ($18,040) | ($35,393) | |
Prior service credits | 83 | ||
Net actuarial gain (loss) | -14,286 | ||
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense) of $7,648, $(9,344), and $3,623 for the years ended December 31, 2014, 2013, and 2012, respectively | -14,203 | 17,353 | -6,728 |
Accumulated other comprehensive income (loss) at end of year | -32,243 | -18,040 | -35,393 |
Pension Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) at beginning of year | -17,979 | ||
Prior service credits | -1 | ||
Net actuarial gain (loss) | -13,873 | ||
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense) of $7,648, $(9,344), and $3,623 for the years ended December 31, 2014, 2013, and 2012, respectively | -13,874 | ||
Accumulated other comprehensive income (loss) at end of year | -31,853 | ||
Postretirement Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) at beginning of year | 269 | ||
Prior service credits | 84 | ||
Net actuarial gain (loss) | -270 | ||
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense) of $7,648, $(9,344), and $3,623 for the years ended December 31, 2014, 2013, and 2012, respectively | -186 | ||
Accumulated other comprehensive income (loss) at end of year | 83 | ||
Supplemental Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) at beginning of year | -330 | ||
Prior service credits | 0 | ||
Net actuarial gain (loss) | -143 | ||
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense) of $7,648, $(9,344), and $3,623 for the years ended December 31, 2014, 2013, and 2012, respectively | -143 | ||
Accumulated other comprehensive income (loss) at end of year | ($473) |
Retirement_Plans_Income_Loss_E
Retirement Plans (Income (Loss) Estimated to be Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Cost) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of prior service credits, next twelve months | ($81) |
Amortization of net gain (loss), next twelve months | -2,745 |
Total amortization of accumulated other comprehensive income (loss), next twelve months | -2,826 |
Pension Plan [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of prior service credits, next twelve months | 3 |
Amortization of net gain (loss), next twelve months | -2,576 |
Total amortization of accumulated other comprehensive income (loss), next twelve months | -2,573 |
Postretirement Plan [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of prior service credits, next twelve months | -84 |
Amortization of net gain (loss), next twelve months | 1 |
Total amortization of accumulated other comprehensive income (loss), next twelve months | -83 |
Supplemental Plan [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of prior service credits, next twelve months | 0 |
Amortization of net gain (loss), next twelve months | -170 |
Total amortization of accumulated other comprehensive income (loss), next twelve months | ($170) |
Retirement_Plans_401k_Savings_
Retirement Plans (401(k) Savings Plan) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Employer discretionary contribution percent | 4.00% | ||
Maximum annual contribution per employee percent | 50.00% | ||
Employer matching contribution percent | 4.00% | ||
Employer matching contribution amount | $1 | $1.10 | $0.90 |
Contribution to 401(k) savings plan | 2.3 | 2.3 | 2 |
Employer total contribution amount | $3.30 | $3.40 | $2.90 |
Retirement_Plans_Textual_Detai
Retirement Plans (Textual) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 24, 2014 | Sep. 18, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of eligible pay contribution to certain employees | 4.00% | ||||
Common Stock, Shares Held by Plan | -32,774,420 | -29,789,825 | -2,500,000 | -2,213,750 | |
Dividends paid | $29,528,000 | $24,521,000 | $22,566,000 | ||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Maximum years of vested service for calculation of retirement benefits | 30 years | ||||
Years of employees highest average salary for calculation of retirement benefits | 5 years | ||||
Defined Benefit Plan, Number of Employees Covered | 179 | ||||
Number of years preceding retirement for calculation of retirement benefits | 10 years | ||||
Maximum years of service for which pension benefits calculation is based upon vested service and average five years of salary | 15 years | ||||
Maximum total years of age and years of service for which pension benefits calculation is based upon vested service and average five years of salary | 65 years | ||||
Pension Plan expense | -45,000 | 1,725,000 | 1,419,000 | ||
Employer contributions | 0 | 15,000,000 | 12,000,000 | ||
Discount rate used in determining benefit obligation | 4.15% | 5.00% | 4.08% | ||
Pension plan actual asset allocations | 100.00% | 100.00% | |||
Projected benefit obligation | 129,160,000 | 105,914,000 | 115,177,000 | ||
Accumulated benefit obligation | 121,826,000 | 99,551,000 | |||
Pension Plan [Member] | Equity securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target plan asset allocations range - minimum | 60.00% | ||||
Target plan asset allocations range - maximum | 70.00% | ||||
Pension plan actual asset allocations | 68.00% | 70.00% | |||
Pension Plan [Member] | Debt securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target plan asset allocations range - minimum | 30.00% | ||||
Target plan asset allocations range - maximum | 40.00% | ||||
Pension plan actual asset allocations | 30.00% | 29.00% | |||
Pension Plan [Member] | Other securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target plan asset allocations range - minimum | 0.00% | ||||
Target plan asset allocations range - maximum | 10.00% | ||||
Pension plan actual asset allocations | 2.00% | 1.00% | |||
Pension Plan [Member] | Common Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Common Stock, Shares Held by Plan | -210,663 | ||||
Fair value of common stock | 6,500,000 | 6,700,000 | |||
Pension plan actual asset allocations | 4.90% | 5.20% | |||
Supplemental Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of employees covered by the pension plan | 1 | ||||
Discount rate used in determining benefit obligation | 4.07% | 4.87% | 4.08% | ||
Projected benefit obligation | 2,100,000 | 1,700,000 | |||
Accumulated benefit obligation | 2,000,000 | 1,500,000 | |||
Supplemental Plan expense | 300,000 | 200,000 | 200,000 | ||
Postretirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension Plan expense | 186,000 | 431,000 | -182,000 | ||
Employer contributions | 247,000 | 219,000 | |||
Discount rate used in determining benefit obligation | 3.75% | 4.27% | 4.08% | ||
Expected health care cost trend rate assumed for 2014 | 8.00% | ||||
Expected ultimate health care cost trend rate in 2020 | 5.00% | ||||
Projected benefit obligation | 3,702,000 | 3,477,000 | 3,243,000 | ||
Accumulated benefit obligation | 3,702,000 | 3,477,000 | |||
Minimum retirement age (years) | 50 years | ||||
Maximum benefit age of spouse (years) | 65 years | ||||
Minimum retirement age with twenty-five years of service to be eligible for postretirement benefits (years) | 60 years | ||||
Minimum years of service for retirees at age sixty to be eligible for postretirement benefits (years) | 25 years | ||||
Chemical Financial Corporation [Member] | Pension Plan [Member] | Common Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Dividends paid | $200,000 | $180,000 |
ShareBased_Compensation_Plan_S
Share-Based Compensation Plan (Stock Options Outstanding Per Range of Exercise Prices) (Details) (Stock Options [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 1,037,311 |
Options Outstanding, Weighted Average Exercise Price Per Share | $25.90 |
Options Outstanding, Weighted Average Contractual Term | 6 years 0 months 11 days |
Options Exercisable, Weighted Average Exercise Price Per Share | $25.28 |
Options Exercisable, Weighted Average Contractual Term | 4 years 3 months 23 days |
Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, lower price range limit | $19.43 |
Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, upper price range limit | $32.28 |
Range of Exercise Prices Per Share, $19.43 - 21.10 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 107,803 |
Options Outstanding, Weighted Average Exercise Price Per Share | $20.36 |
Options Outstanding, Weighted Average Contractual Term | 5 years 6 months 29 days |
Options Exercisable, Number Exercisable | 107,803 |
Options Exercisable, Weighted Average Exercise Price Per Share | $20.36 |
Options Exercisable, Weighted Average Contractual Term | 5 years 6 months 29 days |
Range of Exercise Prices Per Share, $19.43 - 21.10 [Member] | Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, lower price range limit | $19.43 |
Range of Exercise Prices Per Share, $19.43 - 21.10 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, upper price range limit | $21.10 |
Range of Exercise Prices Per Share, $23.78 - 25.14 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 625,420 |
Options Outstanding, Weighted Average Exercise Price Per Share | $24.57 |
Options Outstanding, Weighted Average Contractual Term | 6 years 2 months 2 days |
Options Exercisable, Number Exercisable | 376,259 |
Options Exercisable, Weighted Average Exercise Price Per Share | $24.44 |
Options Exercisable, Weighted Average Contractual Term | 5 years 0 months 11 days |
Range of Exercise Prices Per Share, $23.78 - 25.14 [Member] | Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, lower price range limit | $23.78 |
Range of Exercise Prices Per Share, $23.78 - 25.14 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, upper price range limit | $25.14 |
Range of Exercise Prices Per Share, $29.45 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 183,038 |
Options Outstanding, Weighted Average Exercise Price Per Share | $29.45 |
Options Outstanding, Weighted Average Contractual Term | 9 years 2 months 2 days |
Options Exercisable, Number Exercisable | 0 |
Options Exercisable, Weighted Average Exercise Price Per Share | $0 |
Options Exercisable, Weighted Average Contractual Term | 0 years 0 months 1 day |
Range of Exercise Prices Per Share, $29.45 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, upper price range limit | $29.45 |
Range of Exercise Prices Per Share, $32.28 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | 121,050 |
Options Outstanding, Weighted Average Exercise Price Per Share | $32.28 |
Options Outstanding, Weighted Average Contractual Term | 0 years 11 months 20 days |
Options Exercisable, Number Exercisable | 121,050 |
Options Exercisable, Weighted Average Exercise Price Per Share | $32.28 |
Options Exercisable, Weighted Average Contractual Term | 0 years 11 months 20 days |
Range of Exercise Prices Per Share, $32.28 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price per share, upper price range limit | $32.28 |
ShareBased_Compensation_Plan_S1
Share-Based Compensation Plan (Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted, Weighted Average Grant Date Fair Value Per Share (USD per share) | $9.64 | $7.40 | $7.08 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted, Number of Options | 190,011 | ||
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 | 314,765 | 162,883 |
Granted, Number of Options | 190,011 | 244,719 | 229,763 |
Exercised, , Number of Options | 0 | 0 | 0 |
Vested, Number of Options | -148,016 | -127,443 | -76,103 |
Forfeited/expired, Number of Options | -23,876 | -17,961 | -1,778 |
Ending balance, Number of Options | 432,199 | 414,080 | 314,765 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Beginning balance, Weighted Average Exercise Price Per Share (USD per share) | $24.29 | $23.03 | $21.27 |
Granted, Weighted Average Exercise Price Per Share (USD per share) | $29.45 | $25.14 | $23.78 |
Exercised, Weighted Average Exercise Price Per Share (USD per share) | $0 | $0 | $0 |
Vested, Weighted Average Exercise Price Per Share (USD per share) | $23.43 | $22.94 | $21.55 |
Forfeited/expired, Weighted Average Exercise Price Per Share (USD per share) | $25.67 | $23.34 | $21.48 |
Ending balance, Weighted Average Exercise Price Per Share (USD per share) | $26.75 | $24.29 | $23.03 |
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 Per Share (USD per share) | $7.19 | $6.92 | $6.55 |
Granted, Weighted Average Grant Date Fair Value Per Share (USD per share) | $9.64 | $7.40 | $7.08 |
Exercised, Granted, Weighted Average Grant Date Fair Value Per Share (USD per share) | $0 | $0 | $0 |
Vested, Granted, Weighted Average Grant Date Fair Value Per Share (USD per share) | $6.98 | $6.92 | $6.63 |
Forfeited/expired, Granted, Weighted Average Grant Date Fair Value Per Share (USD per share) | $7.79 | $6.98 | $6.62 |
Ending balance, Weighted Average Grant Date Fair Value Per Share (USD per share) | $8.30 | $7.19 | $6.92 |
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 | 997,222 | 815,119 |
Granted, Number of Options | 190,011 | 244,719 | 229,763 |
Exercised, , Number of Options | -72,936 | -100,145 | -1,532 |
Vested, Number of Options | 0 | 0 | 0 |
Forfeited/expired, Number of Options | -153,754 | -67,806 | -46,128 |
Ending balance, Number of Options | 1,037,311 | 1,073,990 | 997,222 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Beginning balance, Weighted Average Exercise Price Per Share (USD per share) | $26.84 | $27.24 | $28.29 |
Granted, Weighted Average Exercise Price Per Share (USD per share) | $29.45 | $25.14 | $23.78 |
Exercised, Weighted Average Exercise Price Per Share (USD per share) | $24.67 | $22.87 | $19.97 |
Vested, Weighted Average Exercise Price Per Share (USD per share) | $0 | $0 | $0 |
Forfeited/expired, Weighted Average Exercise Price Per Share (USD per share) | $37.50 | $32.27 | $28.78 |
Ending balance, Weighted Average Exercise Price Per Share (USD per share) | $25.90 | $26.84 | $27.24 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Options Exercisable, Number Exercisable | 605,112 | ||
Exercisable/vested, Weighted Average Exercise Price Per Share (USD per share) | $25.28 |
BlackScholes_Pricing_Model_Ass
(Black-Scholes Pricing Model Assumptions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assumptions of Black-Scholes option pricing model | |||
Expected dividend yield | 3.00% | 3.50% | 3.60% |
Risk-free interest rate | 2.16% | 1.34% | 1.18% |
Expected stock price volatility | 42.20% | 42.10% | 44.40% |
Expected life of options - in years | 7 years | 7 years | 6 years 1 month 10 days |
Weighted average fair value per share | $9.64 | $7.40 | $7.08 |
ShareBased_Compensation_Plan_R
Share-Based Compensation Plan (Restricted Stock Unit Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 Units | 188,532 | 156,510 | 130,512 |
Granted, Number of Units | 73,468 | 71,768 | 69,772 |
Converted into shares of common stock, Number of Units | -52,008 | -36,416 | -35,346 |
Forfeited/expired, Number of Units | -5,673 | -3,330 | -8,428 |
Ending balance, Number of Units | 204,319 | 188,532 | 156,510 |
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 Per Share (USD per share) | $21.49 | $20.83 | $20.90 |
Granted, Weighted Average Grant Date Fair Value Per Unit (USD per Unit) | $27.49 | $23.42 | $22.20 |
Converted into shares of common stock, Weighted Average Grant Date Fair Value Per Unit (USD per Unit) | $19.23 | $22.44 | $23.27 |
Forfeited/expired, Weighted Average Grant Date Fair Value Per Unit (USD per Unit) | $24.31 | $21.67 | $23.05 |
Ending balance, Weighted Average Grant Date Fair Value Per Share (USD per share) | $24.14 | $21.49 | $20.83 |
ShareBased_Compensation_Plan_T1
Share-Based Compensation Plan (Textual) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-Based Compensation Plans (Textual) [Abstract] | |||
Share-based compensation expense | $2,931,000 | $2,854,000 | $1,865,000 |
Corporation granted shares of common stock | 10,126 | ||
Common stock available for future grants under share-based compensation plans | 379,605 | ||
Stock option vesting period, post 2012 grants | 5 years | ||
Stock option vesting period pre 2013 grants | 3 years | ||
Stock Options and Restricted Stock Performance Units [Member] | |||
Share-Based Compensation Plans (Textual) [Abstract] | |||
Share-based compensation expense | 2,900,000 | 2,900,000 | 1,900,000 |
Stock Options [Member] | |||
Share-Based Compensation Plans (Textual) [Abstract] | |||
Corporation granted options to purchase common stock | 190,011 | ||
Stock option expiration period | 10 years | ||
Intrinsic value of outstanding in-the-money stock options | 5,100,000 | ||
Intrinsic value of exercisable in-the-money stock options | 3,400,000 | ||
Closing price of common stock | $30.64 | ||
Unrecognized compensation expense related to share-based compensation | 2,700,000 | ||
Period of common stock historical volatility | 7 years | ||
Equity Option [Member] | |||
Share-Based Compensation Plans (Textual) [Abstract] | |||
Unrecognized Compensation, Stock Options, Total Compensation Cost Not yet Recognized, Period for Recognition | 3 years 7 months | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Plans (Textual) [Abstract] | |||
Corporation granted options to purchase restricted stock performance units | 73,468 | 71,768 | 69,772 |
Unrecognized compensation expense related to share-based compensation | $2,400,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 5 months | ||
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 |
Federal_Income_Taxes_Effective
Federal Income Taxes (Effective Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate, Tax Rate Reconciliation [Abstract] | |||||||||||
Tax at statutory rate | $31,367 | $28,388 | $25,133 | ||||||||
Tax-exempt interest income | -3,118 | -2,746 | -2,524 | ||||||||
Income tax credits | -1,624 | -1,615 | -1,561 | ||||||||
Other, net | 875 | 273 | -248 | ||||||||
Provision for federal income taxes | $7,050 | $7,450 | $7,100 | $5,900 | $6,100 | $6,400 | $6,100 | $5,700 | $27,500 | $24,300 | $20,800 |
Effective federal income tax rate | 30.70% | 30.00% | 29.00% |
Federal_Income_Taxes_Provision
Federal Income Taxes (Provision for Federal Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Current | $29,200 | $23,665 | $8,132 | ||||||||
Deferred | -1,700 | 635 | 12,668 | ||||||||
Total | $7,050 | $7,450 | $7,100 | $5,900 | $6,100 | $6,400 | $6,100 | $5,700 | $27,500 | $24,300 | $20,800 |
Federal_Income_Taxes_Deferred_
Federal Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets, Gross [Abstract] | ||
Allowance for loan losses | $26,489 | $27,675 |
Acquisition-related fair value adjustments | 19,457 | 8,699 |
Accrued expenses not currently deductible | 7,819 | 6,288 |
Nonaccrual loan interest | 4,682 | 2,884 |
Other | 12,729 | 8,779 |
Total deferred tax assets | 71,176 | 54,325 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Defined benefit pension plan | 565 | 8,020 |
Goodwill | 5,205 | 4,680 |
Mortgage servicing rights | 4,276 | 1,197 |
Core deposit intangible assets | 5,072 | 932 |
Other | 3,319 | 4,011 |
Total deferred tax liabilities | 18,437 | 18,840 |
Net deferred tax assets | $52,739 | $35,485 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Contingencies [Line Items] | |||
Number of months in which the majority of loan commitments are expected to fund loans | 3 months | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating leases, future minimum payments due - 2015 | $13.80 | ||
Operating leases, future minimum payments due - 2016 | 11.3 | ||
Operating leases, future minimum payments due - 2017 | 9.3 | ||
Operating leases, future minimum payments due - 2018 | 4.2 | ||
Operating leases, future minimum payments due - 2019 | 1.9 | ||
Operating leases, future minimum payments due - 2020 and thereafter | 6.7 | ||
Consumer Price Index increase | 3.00% | ||
Operating lease rent expense | 12.4 | 11.6 | 10.8 |
Commitments to Extend Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Face amount of off-balance sheet liability | 1,080 | 878 | |
Expiration period of commitments to extend credit | 1 year | ||
Face amount of off-balance sheet liability with expiration greater than five years | 73 | ||
Commitments to Extend Credit [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Expiration period of commitments to extend credit | 5 years | ||
Standby Letters of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Face amount of off-balance sheet liability | 41 | 47 | |
Loan Origination Commitments [Member] | |||
Loss Contingencies [Line Items] | |||
Face amount of off-balance sheet liability | 251 | 197 | |
Loan Origination Commitments [Member] | Real Estate Residential Loans [Member] | |||
Loss Contingencies [Line Items] | |||
Face amount of off-balance sheet liability | $24 | $11 |
Regulatory_Capital_and_Reserve2
Regulatory Capital and Reserve Requirements (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Minimum average regulatory cash reserve balance | $46,300,000 | $29,300,000 | |
Chemical Financial Corporation [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Cash dividends paid to parent company | -64,468,000 | -24,488,000 | -27,550,000 |
Risk weighted assets | 5,700,000,000 | 4,640,000,000 | |
Total Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | 705,130,000 | 649,836,000 | |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 456,302,000 | 371,465,000 | |
Actual, Ratio | 12.40% | 14.00% | |
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | |
Tier 1 Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | 633,779,000 | 591,535,000 | |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 228,151,000 | 185,732,000 | |
Actual, Ratio | 11.10% | 12.70% | |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Leverage Ratio: | |||
Actual, Capital Amount | 633,779,000 | 591,535,000 | |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 273,226,000 | 239,010,000 | |
Actual, Ratio | 9.30% | 9.90% | |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Chemical Bank [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Cash dividends paid to parent company | 64,500,000 | 24,500,000 | 27,600,000 |
Risk weighted assets | 5,700,000,000 | 4,640,000,000 | |
Total Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | 654,031,000 | 579,494,000 | |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 455,633,000 | 370,881,000 | |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | 569,541,000 | 463,601,000 | |
Actual, Ratio | 11.50% | 12.50% | |
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | 10.00% | |
Tier 1 Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | 582,783,000 | 521,283,000 | |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 227,816,000 | 185,440,000 | |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | 341,725,000 | 278,160,000 | |
Actual, Ratio | 10.20% | 11.20% | |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 6.00% | 6.00% | |
Leverage Ratio: | |||
Actual, Capital Amount | 582,783,000 | 521,283,000 | |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 273,048,000 | 238,884,000 | |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $341,310,000 | $298,605,000 | |
Actual, Ratio | 8.50% | 8.70% | |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% | 5.00% |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator and denominator of the basic and diluted earnings per common share computations | |||||||||||
Net Income (Loss) Attributable to Parent | $15,305 | $16,767 | $16,236 | $13,813 | $14,378 | $14,993 | $14,203 | $13,234 | $62,121 | $56,808 | $51,008 |
Denominator for basic earnings per common share, weighted average common shares outstanding | 31,367,000 | 28,183,000 | 27,492,000 | ||||||||
Weighted average common stock equivalents | 221,000 | 169,000 | 91,000 | ||||||||
Denominator for diluted earnings per common share | 31,588,000 | 28,352,000 | 27,583,000 | ||||||||
Basic earnings per common share | $0.47 | $0.51 | $0.54 | $0.46 | $0.48 | $0.54 | $0.52 | $0.48 | $1.98 | $2.02 | $1.86 |
Diluted earnings per common share | $0.46 | $0.51 | $0.54 | $0.46 | $0.48 | $0.53 | $0.51 | $0.48 | $1.97 | $2 | $1.85 |
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 | 240,165 | 356,328 | 614,152 |
Parent_Company_Only_Financial_2
Parent Company Only Financial Statements Financial Position (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets [Abstract] | ||||
Investment securities available-for-sale | $748,864 | $684,570 | ||
Premises and equipment | 97,496 | 75,308 | ||
Goodwill | 180,128 | 120,164 | ||
Other assets | 141,467 | 132,781 | ||
Total Assets | 7,322,143 | 6,184,708 | ||
Liabilities and Equity [Abstract] | ||||
Other liabilities | 56,572 | 38,395 | ||
Shareholders' equity | 797,133 | 696,500 | 596,341 | 571,729 |
Total Liabilities and Shareholders' Equity | 7,322,143 | 6,184,708 | ||
Chemical Financial Corporation [Member] | ||||
Assets [Abstract] | ||||
Cash at subsidiary bank | 45,820 | 65,358 | ||
Investment in subsidiary bank | 745,045 | 625,156 | ||
Premises and equipment | 3,601 | 3,902 | ||
Goodwill | 1,092 | 1,092 | ||
Other assets | 4,654 | 3,309 | ||
Total Assets | 800,212 | 698,817 | ||
Liabilities and Equity [Abstract] | ||||
Other liabilities | 3,079 | 2,317 | ||
Shareholders' equity | 797,133 | 696,500 | ||
Total Liabilities and Shareholders' Equity | $800,212 | $698,817 |
Parent_Company_Only_Financial_3
Parent Company Only Financial Statements Statements of Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other income | $647 | $861 | $1,202 | ||||||||
Operating expenses | 52,616 | 42,702 | 42,425 | 42,182 | 42,405 | 39,545 | 41,041 | 41,957 | 179,925 | 164,948 | 151,921 |
Federal income tax benefit | -7,050 | -7,450 | -7,100 | -5,900 | -6,100 | -6,400 | -6,100 | -5,700 | -27,500 | -24,300 | -20,800 |
Net Income | 15,305 | 16,767 | 16,236 | 13,813 | 14,378 | 14,993 | 14,203 | 13,234 | 62,121 | 56,808 | 51,008 |
Chemical Financial Corporation [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash dividends from subsidiary bank | 64,468 | 24,488 | 27,550 | ||||||||
Other income | 53 | 390 | 92 | ||||||||
Total income | 64,521 | 24,878 | 27,642 | ||||||||
Operating expenses | 7,200 | 4,735 | 3,773 | ||||||||
Income (loss) before income taxes and equity in undistributed net income of subsidiary bank | 57,321 | 20,143 | 23,869 | ||||||||
Federal income tax benefit | 2,302 | 1,556 | 1,311 | ||||||||
Equity in undistributed net income of subsidiary bank | 2,498 | 35,109 | 25,828 | ||||||||
Net Income | $62,121 | $56,808 | $51,008 |
Parent_Company_Only_Financial_4
Parent Company Only Financial Statements Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net Income | $62,121 | $56,808 | $51,008 |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Share-based compensation expense | 2,931 | 2,854 | 1,865 |
Depreciation of premises and equipment | 8,980 | 8,713 | 8,142 |
Net Cash Provided by Operating Activities | 89,931 | 89,679 | 95,166 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Cash assumed in business combination | -14,260 | 0 | 339,372 |
Purchase of investment securities available-for-sale | 0 | -304,264 | -191,689 |
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities | 165,749 | 154,959 | 268,848 |
Purchases of premises and equipment, net | -13,411 | -8,664 | -10,303 |
Net Cash Provided by (Used in) Investing Activities | -478,755 | -648,475 | 53,127 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Payments of Ordinary Dividends, Common Stock | -29,528 | -24,521 | -22,566 |
Proceeds from issuance of common stock, net of issuance costs | 76,175 | 53,925 | 0 |
Repayments of Subordinated Debt | 10,310 | 0 | 0 |
Proceeds from directors' stock purchase plan and exercise of stock options | 1,242 | 806 | 260 |
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | -701 | -379 | -248 |
Net Cash Provided by Financing Activities | 261,056 | 213,449 | 125,902 |
Net Increase (Decrease) in Cash and Cash Equivalents | -127,768 | -345,347 | 274,195 |
Cash and Cash Equivalents at Beginning of Year | 310,788 | 656,135 | 381,940 |
Cash and Cash Equivalents at End of Year | 183,020 | 310,788 | 656,135 |
Chemical Financial Corporation [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net Income | 62,121 | 56,808 | 51,008 |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Share-based compensation expense | 2,931 | 2,854 | 1,865 |
Gain on sale of available-for-sale investment securities | 0 | -245 | 0 |
Depreciation of premises and equipment | 327 | 416 | 463 |
Equity in undistributed net income of subsidiary bank | -2,498 | -35,109 | -25,828 |
Net increase in other assets | 1,101 | -711 | 1,033 |
Net increase (decrease) in other liabilities | -2,519 | 563 | 394 |
Net Cash Provided by Operating Activities | 61,463 | 24,576 | 28,935 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Cash assumed in business combination | -117,853 | 0 | 0 |
Purchase of investment securities available-for-sale | 0 | 0 | -4,755 |
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities | 0 | 5,000 | 0 |
Purchases of premises and equipment, net | -26 | -9 | -147 |
Net Cash Provided by (Used in) Investing Activities | -117,879 | 4,991 | -4,902 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Payments of Ordinary Dividends, Common Stock | -29,528 | -24,521 | -22,566 |
Proceeds from issuance of common stock, net of issuance costs | 76,175 | 53,925 | |
Repayments of Subordinated Debt | -10,310 | 0 | 0 |
Proceeds from directors' stock purchase plan and exercise of stock options | 1,242 | 806 | 260 |
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | -701 | -379 | -248 |
Net Cash Provided by Financing Activities | 36,878 | 29,831 | -22,554 |
Net Increase (Decrease) in Cash and Cash Equivalents | -19,538 | 59,398 | 1,479 |
Cash and Cash Equivalents at Beginning of Year | 65,358 | 5,960 | 4,481 |
Cash and Cash Equivalents at End of Year | $45,820 | $65,358 | $5,960 |
Summary_of_Quarterly_Statement2
Summary of Quarterly Statements of Income (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||
Interest income | $61,807 | $56,629 | $55,180 | $53,645 | $55,323 | $53,578 | $52,781 | $52,379 | $227,261 | $214,061 | $210,758 |
Interest Expense | 3,563 | 3,561 | 3,720 | 3,866 | 4,018 | 4,284 | 4,385 | 4,727 | 14,710 | 17,414 | 23,213 |
Net Interest Income | 58,244 | 53,068 | 51,460 | 49,779 | 51,305 | 49,294 | 48,396 | 47,652 | 212,551 | 196,647 | 187,545 |
Provision for loan losses | 1,500 | 1,500 | 1,500 | 1,600 | 2,000 | 3,000 | 3,000 | 3,000 | 6,100 | 11,000 | 18,500 |
Noninterest Income | 18,227 | 15,351 | 15,801 | 13,716 | 13,578 | 14,644 | 15,948 | 16,239 | 63,095 | 60,409 | 54,684 |
Operating expenses | 52,616 | 42,702 | 42,425 | 42,182 | 42,405 | 39,545 | 41,041 | 41,957 | 179,925 | 164,948 | 151,921 |
Income before income taxes | 22,355 | 24,217 | 23,336 | 19,713 | 20,478 | 21,393 | 20,303 | 18,934 | 89,621 | 81,108 | 71,808 |
Federal income tax expense | 7,050 | 7,450 | 7,100 | 5,900 | 6,100 | 6,400 | 6,100 | 5,700 | 27,500 | 24,300 | 20,800 |
Net Income | $15,305 | $16,767 | $16,236 | $13,813 | $14,378 | $14,993 | $14,203 | $13,234 | $62,121 | $56,808 | $51,008 |
Basic earnings per common share | $0.47 | $0.51 | $0.54 | $0.46 | $0.48 | $0.54 | $0.52 | $0.48 | $1.98 | $2.02 | $1.86 |
Diluted earnings per common share | $0.46 | $0.51 | $0.54 | $0.46 | $0.48 | $0.53 | $0.51 | $0.48 | $1.97 | $2 | $1.85 |
Cash dividends declared per share | $0.24 | $0.24 | $0.23 | $0.23 | $0.23 | $0.22 | $0.21 | $0.21 | $0.94 | $0.87 | $0.82 |